By Thomas G. Wolfe, J.D.
The Federal Reserve has launched a survey of finance companies to obtain a “comprehensive view of the range of companies in this sector of the U.S. financial system” and to further develop its understanding of the finance company industry. In 2015, the Fed sought to identify all nonbank financial institutions that extend credit or supply lease financing to households and businesses in America. Now, the Fed is conducting a follow-up survey to obtain a more detailed picture of the industry.
According to the Fed’s March 23, 2016, release, the survey is designed to collect “balance sheet data on major categories of household and business credit receivables and liabilities” from the finance companies. Not only will the collected data provide a clearer benchmark for the Fed’s Finance Companies statistical release, the input also will better equip the Fed when it compiles figures and estimates for its Consumer Credit and Financial Accounts of the United States releases.
As part of the survey initiative, Fed Chair Janet Yellen is sending a letter to approximately 2,300 finance companies, explaining the Fed’s undertaking and urging the companies to participate in the survey. In her letter, Yellen emphasizes that the “availability of credit to consumers and businesses is important to our economy, and finance companies play a very important role in U. S. credit markets.”
For more information about issues of interest to the finance company industry, subscribe to the Banking and Finance Law Daily.
