June 17 (Reuters) - The Federal Deposit Insurance Corp's

five-member board plans to vote on Thursday to downgrade its

rating on Citigroup's ( C/PN ) data-management systems to a

"deficiency" from a "shortcoming", the Wall Street Journal

reported on Monday.

The U.S. Federal Reserve and the FDIC in 2022 had identified

a shortcoming in Citi's so-called "living will" that details how

the firm would be unwound in the event of bankruptcy.

Banking regulators had said problems with Citi's data

governance could adversely affect its ability to produce timely

and accurate data during a period of financial stress and told

the bank to take urgent action to fix its resolution plan.

The Fed, however, is not expected to join the FDIC in

escalating its concerns about the bank's plan, the report said,

citing people familiar with the matter.

"We have rigorous, firm-wide stress testing and resolution

planning processes and we're always working to improve and

strengthen those capabilities," Citi said in a statement.

"Our balance sheet and financial health remains strong, with

high levels of capital, liquidity and reserves. We continue to

have confidence that Citi could be resolved without the use of

taxpayer funds or an adverse impact on the financial system,"

the bank said.

FDIC declined to comment.