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Finance companies, lenders urged to participate in Federal Reserve census

By Madison Parry

In an effort to get a complete picture of the sector, the Board of Governors of the Federal Reserve System announced the beginning of the 2020 Census of finance companies and other lenders Tuesday, urging that participation will contribute to better-informed policy decisions and help to form the basis of statistical releases.

Another census has only just begun, this time for finance companies and other lenders.

On Tuesday, the Federal Reserve Board announced the beginning of the 2020 Census for financers and other lenders.

“Your participation is important to help us understand the size and structure of lenders like yours that supply credit or lease financing to U.S. households and businesses,” Federal Reserve Chair Jerome H. Powell said in a Tuesday news release.

“The results will contribute to better-informed policy decisions and form the basis of our statistical releases, which have become all the more critical during the pandemic outbreak.” Powell said.

The board urged participation, saying the data collected helps provide a benchmark for the System’s monthly report on the outstanding accounts receivable of finance companies and provide a comprehensive update on these companies’ sources of funds.

Data collected then is used as an important input to the estimates of total consumer credit as well as the U.S. financial accounts.

Every five years, the Federal Reserve surveys the assets and liabilities of finance companies, now an ongoing practice for 65 years, since 1955. This year, a letter from Powell was sent out to around 26,000 companies.