Fed survey: Plurality of banks seek to maintain current balance sheet size

Nearly one-third of respondents to a Federal Reserve survey of senior financial officers said their banks plan to take actions to maintain the current size of their balance sheets over the next six months.

Findings: Conducted in May, the Senior Financial Officer Survey also found:

• One-quarter reported that their banks plan to increase, or limit the decline in, the size of their balance sheets, while the same fraction said their banks had no plans to increase or decrease the size of their balance sheets.

• A smaller number of respondents said their banks plan to decrease, or limit the growth in, the size of their balance sheets over the same period.

Background: The Fed uses the survey to obtain information about banks’ reserve balance management strategies and practices, deposit pricing strategies, balance sheet expectations, and views regarding Fed facilities.