June 17 (Reuters) - The Federal Deposit Insurance Corp's five-member board plans to vote on Thursday to downgrade its rating on Citigroup's 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. (Reporting by Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)