Agency Information Collection Activities; Submission for OMB Review; Comment Request
| Published date | 14 February 2019 |
| Citation | 84 FR 4131 |
| Record Number | 2019-02330 |
| Section | Notices |
| Court | Federal Deposit Insurance Corporation,Federal Reserve System,The Comptroller Of The Currency Office,Treasury Department |
Federal Register, Volume 84 Issue 31 (Thursday, February 14, 2019)
[Federal Register Volume 84, Number 31 (Thursday, February 14, 2019)]
[Notices]
[Pages 4131-4137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02330]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
Agency Information Collection Activities; Submission for OMB
Review; Comment Request
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Joint notice and request for comment.
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SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may
not conduct or sponsor, and a respondent is not required to respond to,
an information collection unless it displays a currently valid Office
of Management and Budget (OMB) control number. On September 28, 2018,
the agencies, under the auspices of the Federal Financial Institutions
Examination Council (FFIEC), requested public comment for 60 days on a
proposal to revise and extend the Consolidated Reports of Condition and
Income for a Bank with Domestic and Foreign Offices (FFIEC 031), the
Consolidated Reports of Condition and Income for a Bank with Domestic
Offices Only (FFIEC 041), and the Consolidated Reports of Condition and
Income for a Bank with Domestic Offices Only and Total Assets Less Than
$1 Billion (FFIEC 051), which are currently approved collections of
information. The Consolidated Reports of Condition and Income are
commonly referred to as Call Reports. In addition, the FFIEC requested
public comment for 60 days on a proposal to revise and extend the
Report of Assets and Liabilities of U.S. Branches and Agencies of
Foreign Banks (FFIEC 002) and the Report of Assets and Liabilities of a
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or
Agency of a Foreign (Non-U.S.) Bank (FFIEC 002S), which are currently
approved collections of information. The Board published this proposal
on behalf of the agencies. Also, the agencies requested public comment
for 60 days on proposals to revise and extend the Foreign Branch Report
of Condition (FFIEC 030), the Abbreviated Foreign Branch Report of
Condition (FFIEC 030S), and the Regulatory Capital Reporting for
Institutions Subject to the Advanced Capital Adequacy Framework (FFIEC
101), which are currently approved collections of information.
The comment period for the September 2018 notice ended on November
27, 2018. As described in the SUPPLEMENTARY INFORMATION section, after
considering the comments received on the proposals, the FFIEC and
agencies will proceed with the proposed reporting revisions to and
extensions of the FFIEC 031, FFIEC 041, FFIEC 051, FFIEC 002, FFIEC
002S, FFIEC 030, FFIEC 030S, and FFIEC 101, as originally proposed,
with some modification to the FFIEC 031 and FFIEC 041. These proposed
revisions generally address the revised accounting for credit losses
under the Financial Accounting Standards Board's (FASB) Accounting
Standards Update (ASU) No. 2016-13, ``Financial Instruments--Credit
Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments'' (ASU 2016-13). This proposal also includes regulatory
capital reporting changes related to implementing the agencies' recent
final rule on the implementation and capital transition for the current
expected credit losses methodology (CECL).
In addition, this notice includes other revisions to the Call
Reports and the FFIEC 101 resulting from two sections of the Economic
Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA),
effective upon enactment on May 24, 2018, that affect the information
reported in these reports and for which the agencies submitted
emergency review requests to OMB that OMB has approved.
The proposed revisions related to ASU 2016-13 would begin to take
effect March 31, 2019, for reports with quarterly report dates and
December 31, 2019, for reports with an annual report date, with later
effective dates for certain respondents.
In addition, the agencies are giving notice they are sending the
collections to OMB for review.
DATES: Comments must be submitted on or before March 18, 2019.
[[Page 4132]]
ADDRESSES: Interested parties are invited to submit written comments to
any or all of the agencies. All comments, which should refer to the
``CECL and EGRRCPA Reporting Revisions,'' will be shared among the
agencies.
OCC: Commenters are encouraged to submit comments by email, if
possible. You may submit comments by any of the following methods:
Email: prainfo@occ.treas.gov.
Mail: Legislative and Regulatory Activities Division,
Office of the Comptroller of the Currency, Attention: ``CECL and EGRPRA
Reporting Revisions,'' 400 7th Street SW, Suite 3E-218, Washington, DC
20219.
Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``CECL and EGRPRA Reporting Revisions,'' in your comment. In general,
the OCC will publish your comment on www.reginfo.gov without change,
including any business or personal information that you provide, such
as name and address information, email addresses, or phone numbers.
Comments received, including attachments and other supporting
materials, are part of the public record and subject to public
disclosure. Do not include any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.
Additionally, please send a copy of your comments by mail to: OCC
Desk Officer, U.S. Office of Management and Budget, Attn: 1557-0081,
1557-0099, 1557-0239, 725 17th Street NW, #10235, Washington, DC 20503
or by email to oira_submission@omb.eop.gov.
You may review comments and other related materials that pertain to
this information collection following the close of the 30-Day comment
period for this notice by any of the following methods:
Viewing Comments Electronically: Go to www.reginfo.gov.
Click on the ``Information Collection Review'' tab. Underneath the
``Currently under Review'' section heading, from the drop-down menu,
select ``Department of Treasury'' and then click ``submit.'' This
information collection can be located by searching by OMB control
numbers 1557-0081, 1557-0099, and 1557-0239. Upon finding the
appropriate information collection, click on the related ``ICR
Reference Number.'' On the next screen, select ``View Supporting
Statement and Other Documents'' and then click on the link to any
comment listed at the bottom of the screen.
For assistance in navigating www.reginfo.gov, please
contact the Regulatory Information Service Center at (202) 482-7340.
Viewing Comments Personally: You may personally inspect
comments at the OCC, 400 7th Street SW, Washington, DC. For security
reasons, the OCC requires that visitors make an appointment to inspect
comments. You may do so by calling (202) 649-6700 or, for persons who
are deaf or hearing impaired, TTY, (202) 649-5597. Upon arrival,
visitors will be required to present valid government-issued photo
identification and submit to security screening in order to inspect
comments.
Board: You may submit comments, which should refer to ``CECL and
EGRRCPA Reporting Revisions,'' by any of the following methods:
Agency Website: http://www.federalreserve.gov. Follow the
instructions for submitting comments at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Email: regs.comments@federalreserve.gov. Include ``CECL
and EGRRCPA Reporting Revisions'' in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
All public comments are available from the Board's website at
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons. Accordingly, your comments will
not be edited to remove any identifying or contact information. Public
comments may also be viewed electronically or in paper form in Room
3515, 1801 K Street NW (between 18th and 19th Streets NW), Washington,
DC 20006 between 9:00 a.m. and 5:00 p.m. on weekdays.
FDIC: You may submit comments, which should refer to ``CECL and
EGRRCPA Reporting Revisions,'' by any of the following methods:
Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC's
website.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: comments@FDIC.gov. Include ``CECL and EGRRCPA
Reporting Revisions'' in the subject line of the message.
Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3007, Federal Deposit Insurance Corporation, 550 17th Street, NW,
Washington, DC 20429.
Hand Delivery: Comments may be hand delivered to the guard
station at the rear of the 550 17th Street Building (located on F
Street) on business days between 7:00 a.m. and 5:00 p.m.
Public Inspection: All comments received will be posted without
change to https://www.fdic.gov/regulations/laws/federal/ including any
personal information provided. Paper copies of public comments may be
requested from the FDIC Public Information Center by telephone at (877)
275-3342 or (703) 562-2200.
Additionally, commenters may send a copy of their comments to the
OMB desk officer for the agencies by mail to the Office of Information
and Regulatory Affairs, U.S. Office of Management and Budget, New
Executive Office Building, Room 10235, 725 17th Street NW, Washington,
DC 20503; by fax to (202) 395-6974; or by email to
oira_submission@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: For further information about the
proposed revisions to the information collections discussed in this
notice, please contact any of the agency staff whose names appear
below. In addition, copies of the reporting forms for the reports
within the scope of this notice can be obtained at the FFIEC's website
(https://www.ffiec.gov/ffiec_report_forms.htm).
OCC: Kevin Korzeniewski, Counsel, (202) 649-5490, or for persons
who are deaf or hearing impaired, TTY, (202) 649-5597, Legislative and
Regulatory Activities Division, Office of the Comptroller of the
Currency, 400 7th Street SW, Washington, DC 20219.
Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer,
(202) 452-3884, Office of the Chief Data Officer, Board of Governors of
the Federal Reserve System, 20th and C Streets NW, Washington, DC
20551. Telecommunications Device for the Deaf (TDD) users may call
(202) 263-4869.
FDIC: Manuel E. Cabeza, Counsel, (202) 898-3767, Legal Division,
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington,
DC 20429.
SUPPLEMENTARY INFORMATION:
I. Background
A. ASU 2016-13, ``Financial Instruments--Credit Losses (Topic 326):
Measurement of Credit Losses on Financial Instruments''
In June 2016, the FASB issued ASU 2016-13, which introduced CECL
for estimating allowances for credit losses and added Topic 326, Credit
Losses, to the Accounting Standards Codification (ASC). The new credit
losses standard
[[Page 4133]]
changes several aspects of existing U.S. generally accepted accounting
principles (U.S. GAAP) as follows:
Introduction of a New Credit Loss Methodology
The new accounting standard developed by the FASB has been designed
to replace the existing incurred loss methodology in U.S. GAAP. Under
CECL, the allowance for credit losses is an estimate of the expected
credit losses on financial assets measured at amortized cost, which is
measured using relevant information about past events, including
historical credit loss experience on financial assets with similar risk
characteristics, current conditions, and reasonable and supportable
forecasts that affect the collectability of the remaining cash flows
over the contractual term of the financial assets. In concept, an
allowance will be created upon the origination or acquisition of a
financial asset measured at amortized cost. At subsequent reporting
dates, the allowance will be reassessed for a level that is appropriate
as determined in accordance with CECL. The allowance for credit losses
under CECL is a valuation account, measured as the difference between
the financial assets' amortized cost basis and the amount expected to
be collected on the financial assets, i.e., lifetime expected credit
losses.
Reduction in the Number of Credit Impairment Models
Impairment measurement under existing U.S. GAAP has often been
considered complex because it encompasses five credit impairment models
for different financial assets.\1\ In contrast, CECL introduces a
single measurement objective to be applied to all financial assets
measured at amortized cost, including loans held-for-investment (HFI)
and held-to-maturity (HTM) debt securities. CECL does not, however,
specify a single method for measuring expected credit losses; rather,
it allows any reasonable approach, as long as the estimate of expected
credit losses achieves the objective of the FASB's new accounting
standard. Under the existing incurred loss methodology, institutions
use various methods, including historical loss rate methods, roll-rate
methods, and discounted cash flow methods, to estimate credit losses.
CECL allows the continued use of these methods; however, certain
changes to these methods will need to be made in order to estimate
lifetime expected credit losses.
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\1\ Current U.S. GAAP includes five different credit impairment
models for instruments within the scope of CECL: ASC Subtopic 310-
10, Receivables-Overall; ASC Subtopic 450-20, Contingencies-Loss
Contingencies; ASC Subtopic 310-30, Receivables-Loans and Debt
Securities Acquired with Deteriorated Credit Quality; ASC Subtopic
320-10, Investments-Debt and Equity Securities--Overall; and ASC
Subtopic 325-40, Investments-Other-Beneficial Interests in
Securitized Financial Assets.
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Purchased Credit-Deteriorated (PCD) Financial Assets
CECL introduces the concept of PCD financial assets, which replaces
purchased credit-impaired (PCI) assets under existing U.S. GAAP. The
differences in the PCD criteria compared to the existing PCI criteria
will result in more purchased loans HFI, HTM debt securities, and
available-for-sale (AFS) debt securities being accounted for as PCD
financial assets. In contrast to the existing accounting for PCI
assets, the new standard requires the estimate of expected credit
losses embedded in the purchase price of PCD assets to be estimated and
separately recognized as an allowance as of the date of acquisition.
This is accomplished by grossing up the purchase price by the amount of
expected credit losses at acquisition, rather than being reported as a
credit loss expense. As a result, as of the acquisition date, the
amortized cost basis of a PCD financial asset is equal to the purchase
price of the asset plus the allowance for credit losses, rather than
equal to the purchase price as is currently recorded for PCI loans.
AFS Debt Securities
The new accounting standard also modifies the existing accounting
practices for impairment on AFS debt securities. Under this new
standard, institutions will recognize a credit loss on an AFS debt
security through an allowance for credit losses, rather than a direct
write-down as is required by current U.S. GAAP. The recognized credit
loss is limited to the amount by which the amortized cost of the
security exceeds fair value. A write-down of an AFS debt security's
amortized cost basis to fair value, with any incremental impairment
reported in earnings, would be required only if the fair value of the
AFS debt security is less than its amortized cost basis and either (1)
the institution intends to sell the debt security, or (2) it is more
likely than not that the institution will be required to sell the
security before recovery of its amortized cost basis.
Although the measurement of credit loss allowances is changing
under CECL, the FASB's new accounting standard does not address when a
financial asset should be placed in nonaccrual status. Therefore,
institutions should continue to apply the agencies' nonaccrual policies
that are currently in place.\2\ In addition, the FASB retained the
existing write-off guidance in U.S. GAAP, which requires an institution
to write off a financial asset in the period the asset is deemed
uncollectible.
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\2\ For further information, refer to the Glossary entry for
``Nonaccrual Status'' in the FFIEC 031 and FFIEC 041 Call Report
instruction book, the FFIEC 051 Call Report instruction book, or the
FFIEC 002 instruction book.
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Institutions \3\ must apply ASU 2016-13 in their Call Report, FFIEC
002,\4\ FFIEC 002S, FFIEC 030, FFIEC 030S, and FFIEC 101 submissions in
accordance with the effective dates set forth in the ASU, if an
institution is required to file such form. For institutions that are
public business entities (PBE) and also are Securities and Exchange
Commission (SEC) filers, as both terms are defined in U.S. GAAP, the
new credit losses standard is effective for fiscal years beginning
after December 15, 2019, including interim periods within those fiscal
years. Thus, for an SEC filer that has a calendar year fiscal year, the
standard is effective January 1, 2020, and the institution must first
apply the new credit losses standard in its Call Report, FFIEC 002,\5\
FFIEC 002S, FFIEC 030, and FFIEC 101 for the quarter ended March 31,
2020 (and in its FFIEC 030S for December 31, 2020), if the institution
is required to file these forms.
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\3\ Institutions include banks, savings associations, holding
companies, U.S. branches and agencies of foreign banks, and foreign
branches of U.S. banks and U.S. savings associations.
\4\ As stated in the instructions for the FFIEC 002, U.S.
branches and agencies of foreign banks may choose to, but are not
required to, maintain an allowance for loan losses on an office
level. Similarly, under this proposal, U.S. branches and agencies of
foreign banks that have adopted ASU 2016-13 may choose to, but are
not required to, maintain allowances for credit losses on loans and
other financial assets measured at amortized cost (such as HTM debt
securities), net investments in leases, and off-balance sheet credit
exposures (not accounted for as insurance) on an office level.
\5\ See footnote 4.
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For a PBE that is not an SEC filer, the credit losses standard is
effective for fiscal years beginning after December 15, 2020, including
interim periods within those fiscal years. Thus, for a PBE that is not
an SEC filer and has a calendar year fiscal year, the standard is
effective January 1, 2021, and the institution must first apply the new
credit losses standard in its Call Report, FFIEC 002,\6\ FFIEC 002S,
FFIEC 030, and FFIEC 101 for the quarter ended March 31, 2021 (and in
its FFIEC 030S for December 31, 2021), if the institution is required
to file these forms.
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\6\ See footnote 4.
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[[Page 4134]]
For an institution that is not a PBE, the credit losses standard is
effective for fiscal years beginning after December 15, 2021, including
interim periods within those fiscal years.\7\ Thus, for an institution
that is not a PBE and has a calendar year fiscal year, the standard is
effective January 1, 2022, and the institution must first apply the new
credit losses standard in its Call Report, FFIEC 002,\8\ FFIEC 002S,
FFIEC 030, FFIEC 030S, and FFIEC 101 for the quarter ended March 31,
2022 (and in its FFIEC 030S for December 31, 2022) if the institution
is required to file these forms.
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\7\ Subsequent to the publishing of the initial 60-day Federal
Register notice for this proposal, the FASB amended the effective
date to the periods indicated for entities that are not PBEs (non-
PBEs) through an ASU issued November 15, 2018, ASU No. 2018-19,
Codification Improvements to Topic 326: Financial Instruments--
Credit Losses. The effective date for these entities reflected in
this notice has been updated as appropriate.
\8\ See footnote 4.
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For regulatory reporting purposes, early application of the new
credit losses standard is permitted for all institutions for fiscal
years beginning after December 15, 2018, including interim periods
within those fiscal years.
The following table provides a summary of the effective dates for
ASU 2016-13.
Effective Dates for ASU 2016-13
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U.S. GAAP effective date Regulatory report effective date *
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PBEs That Are SEC Filers................ Fiscal years beginning after 12/ 3/31/2020.
15/2019, including interim
periods within those fiscal
years.
Other PBEs (Non-SEC Filers)............. Fiscal years beginning after 12/ 3/31/2021.
15/2020, including interim
periods within those fiscal
years.
Non-PBEs................................ Fiscal years beginning after 12/ 3/31/2022.\10\
15/2021, including interim
periods within those fiscal
years.\9\
Early Application....................... Early adoption permitted for First 3/31 after the 1/1 effective
fiscal years beginning after date of early adoption of the ASU.
12/15/2018, including interim
periods within those fiscal
years.
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* For institutions with calendar year fiscal year-ends and reports with quarterly report dates.
For additional information on key elements of the new accounting
standard and initial supervisory views with respect to measurement
methods, use of vendors, portfolio segmentation, data needs,
qualitative adjustments, and allowance processes, refer to the
agencies' Joint Statement on the New Accounting Standard on Financial
Instruments--Credit Losses issued on June 17, 2016, and Frequently
Asked Questions on the New Accounting Standard on Financial
Instruments--Credit Losses (CECL FAQs), which were last updated on
September 6, 2017.\11\
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\9\ See footnote 7.
\10\ See footnote 7.
\11\ The CECL FAQs and a related link to the joint statement can
be found on the following agency websites: Board: https://www.federalreserve.gov/supervisionreg/srletters/sr1708a1.pdf; FDIC:
https://www.fdic.gov/news/news/financial/2017/fil17041a.pdf; OCC:
https://www.occ.gov/topics/bank-operations/accounting/cecl/cecl-faqs.html.
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B. EGRRCPA
On May 24, 2018, EGRRCPA amended various statutes administered by
the agencies and affected regulations issued by the agencies.\12\ Two
of the amendments made by EGRRCPA, as described below, took effect on
the day of EGRRCPA's enactment and impact institutions' regulatory
reports. In response to emergency review requests, the agencies
received approval from OMB to revise the reporting of information in
the Call Reports on certain high volatility commercial real estate
(HVCRE) exposures and reciprocal deposits and in the FFIEC 101 report
on certain HVCRE exposures for the June 30, 2018, report date. As a
result of OMB's emergency approval of revisions to the information
collections affected by the above statutory changes, the expiration
date of these collections has been revised to February 28, 2019. The
agencies are now undertaking the regular PRA process for revising and
extending these information collections for three years as described in
this notice.
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\12\ Public Law 115-174, 132 Stat. 1296 (2018).
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HVCRE Exposures
Section 214 of EGRRCPA adds a new Section 51 to the Federal Deposit
Insurance Act (FDI Act) governing the risk-based capital requirements
for certain acquisition, development, or construction (ADC) loans.
EGRRCPA provides that, effective upon enactment, the agencies may only
require a depository institution to assign a heightened risk weight to
an HVCRE exposure if such exposure is an ``HVCRE ADC Loan,'' as defined
in Section 214 of EGRRCPA. Accordingly, a depository institution is
permitted to use the definition of HVCRE ADC Loan in place of the
existing definition of HVCRE loan when reporting HVCRE exposures held
for sale, held for investment, and held for trading on Schedule RC-R,
Regulatory Capital, Part II, Risk-Weighted Assets, in the Call Reports,
as well as on Schedule B and Schedule G in the FFIEC 101 for
institutions required to file that form.
Reciprocal Deposits
Section 29 of the FDI Act (12 U.S.C. 1831f), as amended by Section
202 of EGRRCPA, excepts a capped amount of reciprocal deposits from
treatment as brokered deposits for qualifying institutions, effective
upon enactment. The current Call Report instructions, consistent with
the law prior to the enactment of EGRRCPA, treat all reciprocal
deposits as brokered deposits. When reporting in the Call Report,
institutions should apply the newly defined terms and other provisions
of Section 202 to determine whether they and their reciprocal deposits
are eligible for the statutory exclusion and report as brokered
deposits in Schedule RC-E, and brokered reciprocal deposits in Schedule
RC-O, only those reciprocal deposits that are considered brokered
reciprocal deposits under the new law.
II. Affected Reports and Specific Revisions
A. Call Reports
The agencies propose to extend for three years, with revision, the
FFIEC 031, FFIEC 041, and FFIEC 051 Call Reports.
Report Title: Consolidated Reports of Condition and Income (Call
Report).
Form Numbers: FFIEC 031 (for banks and savings associations with
domestic
[[Page 4135]]
and foreign offices), FFIEC 041 (for banks and savings associations
with domestic offices only),\13\ and FFIEC 051 (for banks and savings
associations with domestic offices only and total assets less than $1
billion).
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\13\ Banks and savings associations with domestic offices only
and total consolidated assets of $100 billion or more file the FFIEC
031 report rather than the FFIEC 041 report.
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Frequency of Response: Quarterly.
Affected Public: Business or other for-profit.
OCC
OMB Control No.: 1557-0081.
Estimated Number of Respondents: 1,207 national banks and federal
savings associations.
Estimated Average Burden per Response: 45.76 burden hours per
quarter to file.
Estimated Total Annual Burden: 220,929 burden hours to file.
Board
OMB Control No.: 7100-0036.
Estimated Number of Respondents: 796 state member banks.
Estimated Average Burden per Response: 50.11 burden hours per
quarter to file.
Estimated Total Annual Burden: 159,550 burden hours to file.
FDIC
OMB Control No.: 3064-0052.
Estimated Number of Respondents: 3,523 insured state nonmember
banks and state savings associations.
Estimated Average Burden per Response: 44.65 burden hours per
quarter to file.
Estimated Total Annual Burden: 629,208 burden hours to file.
The estimated average burden hours collectively reflect the
estimates for the FFIEC 031, the FFIEC 041, and the FFIEC 051 reports.
When the estimates are calculated by type of report across the
agencies, the estimated average burden hours per quarter are 95.47
(FFIEC 031), 55.71 (FFIEC 041), and 39.77 (FFIEC 051). The estimated
burden per response for the quarterly filings of the Call Report is an
average that varies by agency because of differences in the composition
of the banks and savings associations under each agency's supervision
(e.g., size distribution of such institutions, types of activities in
which they are engaged, and existence of foreign offices).
Type of Review: Extension and revision of currently approved
collections.
General Description of Reports
The Call Report information collections are mandatory: 12 U.S.C.
161 (for national banks), 12 U.S.C. 324 (for state member banks), 12
U.S.C. 1817 (for insured state nonmember commercial and savings banks),
and 12 U.S.C. 1464 (for federal and state savings associations). At
present, except for selected data items and text, these information
collections are not given confidential treatment.
Abstract
Banks and savings associations submit Call Report data to the
agencies each quarter for the agencies' use in monitoring the
condition, performance, and risk profile of individual institutions and
the industry as a whole. Call Report data serve a regulatory or public
policy purpose by assisting the agencies in fulfilling their shared
missions of ensuring the safety and soundness of financial institutions
and the financial system and protecting consumer financial rights, as
well as agency-specific missions affecting national and state-chartered
institutions, such as conducting monetary policy, ensuring financial
stability, and administering federal deposit insurance. Call Reports
are the source of the most current statistical data available for
identifying areas of focus for on-site and off-site examinations. Among
other purposes, the agencies use Call Report data in evaluating
institutions' corporate applications, including, in particular,
interstate merger and acquisition applications for which the agencies
are required by law to determine whether the resulting institution
would control more than 10 percent of the total amount of deposits of
insured depository institutions in the United States. Call Report data
also are used to calculate institutions' deposit insurance and
Financing Corporation assessments and national banks' and federal
savings associations' semiannual assessment fees.
B. FFIEC 002 and 002S
The Board proposes to extend for three years, with revision, on
behalf of the agencies the FFIEC 002 and FFIEC 002S reports.
Report Titles: Report of Assets and Liabilities of U.S. Branches
and Agencies of Foreign Banks; Report of Assets and Liabilities of a
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or
Agency of a Foreign (Non-U.S.) Bank.
Form Numbers: FFIEC 002; FFIEC 002S.
OMB control number: 7100-0032.
Frequency of Response: Quarterly.
Affected Public: Business or other for-profit.
Respondents: All state-chartered or federally-licensed U.S.
branches and agencies of foreign banking organizations, and all non-
U.S. branches managed or controlled by a U.S. branch or agency of a
foreign banking organization.
Estimated Number of Respondents: FFIEC 002--209; FFIEC 002S--38.
Estimated Average Burden per Response: FFIEC 002--23.87 hours;
FFIEC 002S--6.0 hours.
Estimated Total Annual Burden: FFEIC 002--19,955 hours; FFIEC
002S--912 hours.
Type of Review: Extension and revision of currently approved
collections.
General Description of Reports
These information collections are mandatory (12 U.S.C. 3105(c)(2),
1817(a)(1) and (3), and 3102(b)). Except for select sensitive items,
the FFIEC 002 is not given confidential treatment; the FFIEC 002S is
given confidential treatment (5 U.S.C. 552(b)(4) and (8)).
Abstract
On a quarterly basis, all U.S. branches and agencies of foreign
banks are required to file the FFIEC 002, which is a detailed report of
condition with a variety of supporting schedules. This information is
used to fulfill the supervisory and regulatory requirements of the
International Banking Act of 1978. The data are also used to augment
the bank credit, loan, and deposit information needed for monetary
policy and other public policy purposes. The FFIEC 002S is a supplement
to the FFIEC 002 that collects information on assets and liabilities of
any non-U.S. branch that is managed or controlled by a U.S. branch or
agency of the foreign bank. A non-U.S. branch is managed or controlled
by a U.S. branch or agency if a majority of the responsibility for
business decisions, including but not limited to decisions with regard
to lending or asset management or funding or liability management, or
the responsibility for recordkeeping with respect to assets or
liabilities for that foreign branch, resides at the U.S. branch or
agency. A separate FFIEC 002S must be completed for each managed or
controlled non-U.S. branch. The FFIEC 002S must be filed quarterly
along with the U.S. branch or agency's FFIEC 002. The data from both
reports are used for (1) monitoring deposit and credit transactions of
U.S. residents; (2) monitoring the impact of policy changes; (3)
analyzing structural issues concerning foreign bank activity in U.S.
markets; (4) understanding flows of banking funds and indebtedness of
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developing countries in connection with data collected by the
International Monetary Fund and the Bank for International Settlements
that are used in economic analysis; and (5) assisting in the
supervision of U.S. offices of foreign banks. The Federal Reserve
System collects and processes these reports on behalf of all three
agencies.
C. FFIEC 030 and 030S
The agencies propose to extend for three years, with revision, the
FFIEC 030 and FFIEC 030S reports.
Report Title: Foreign Branch Report of Condition.
Form Numbers: FFIEC 030 and FFIEC 030S.
Frequency of Response: Annually, and quarterly for significant
branches.
Affected Public: Business or other for profit.
OCC
OMB Number: 1557-0099.
Estimated Number of Respondents: 199 annual branch respondents
(FFIEC 030); 57 quarterly branch respondents (FFIEC 030); 30 annual
branch respondents (FFIEC 030S).
Estimated Average Time per Response: 3.4 burden hours (FFIEC 030);
0.5 burden hours (FFIEC 030S).
Estimated Total Annual Burden: 1,467 burden hours.
Board
OMB Number: 7100-0071.
Estimated Number of Respondents: 14 annual branch respondents
(FFIEC 030); 24 quarterly branch respondents (FFIEC 030); 11 annual
branch respondents (FFIEC 030S).
Estimated Average Time per Response: 3.4 burden hours (FFIEC 030);
0.5 burden hours (FFIEC 030S).
Estimated Total Annual Burden: 380 burden hours.
FDIC
OMB Number: 3064-0011.
Estimated Number of Respondents: 8 annual branch respondents (FFIEC
030); 1 quarterly branch respondent (FFIEC 030); 8 annual branch
respondents (FFIEC 030S).
Estimated Average Time per Response: 3.4 burden hours (FFIEC 030);
0.5 burden hours (FFIEC 030S).
Estimated Total Annual Burden: 45 burden hours.
Type of Review: Extension and revision of currently approved
collections.
General Description of Reports
This information collection is mandatory: 12 U.S.C. 602 (Board); 12
U.S.C. 161 and 602 (OCC); and 12 U.S.C. 1828 (FDIC). This information
collection is given confidential treatment under 5 U.S.C. 552(b)(4) and
(8).
Abstract
The FFIEC 030 collects asset and liability information for foreign
branches of insured U.S. banks and insured U.S. savings associations
(U.S. depository institutions) and is required for regulatory and
supervisory purposes. The information is used to analyze the foreign
operations of U.S. institutions. All foreign branches of U.S.
institutions regardless of charter type file this report as provided in
the instructions to the FFIEC 030 and FFIEC 030S.
A U.S. depository institution generally must file a separate report
for each foreign branch, but in some cases may consolidate filing for
multiple foreign branches in the same country, as described below. A
branch with either total assets of at least $2 billion or commitments
to purchase foreign currencies and U.S. dollar exchange of at least $5
billion as of the end of a calendar quarter is considered a
``significant branch'' and an FFIEC 030 report is required to be filed
quarterly. A U.S. depository institution with a foreign branch having
total assets in excess of $250 million that does not meet either of the
criteria to file quarterly must file the entire FFIEC 030 report for
this foreign branch on an annual basis as of December 31.
A U.S. depository institution with a foreign branch having total
assets of $50 million or more, but less than or equal to $250 million
that does not meet the criteria to file the FFIEC 030 report must file
the FFIEC 030S report for this foreign branch on an annual basis as of
December 31. A U.S. depository institution with a foreign branch having
total assets of less than $50 million is exempt from filing the FFIEC
030 and 030S reports.
D. FFIEC 101
The agencies propose to extend for three years, with revision, the
FFIEC 101 report.
Report Title: Risk-Based Capital Reporting for Institutions Subject
to the Advanced Capital Adequacy Framework.
Form Number: FFIEC 101.
Frequency of Response: Quarterly.
Affected Public: Business or other for-profit.
OCC
OMB Control No.: 1557-0239.
Estimated Number of Respondents: 20 national banks and federal
savings associations.
Estimated Time per Response: 674 burden hours per quarter to file.
Estimated Total Annual Burden: 53,920 burden hours to file.
Board
OMB Control No.: 7100-0319.
Estimated Number of Respondents: 6 state member banks; 16 bank
holding companies and savings and loan holding companies; and 6
intermediate holding companies.
Estimated Time per Response: 674 burden hours per quarter for state
member banks to file, 677 burden hours per quarter for bank holding
companies and savings and loan holding companies to file; and 3 burden
hours per quarter for intermediate holding companies to file.
Estimated Total Annual Burden: 16,176 burden hours for state member
banks to file; 43,328 burden hours for bank holding companies and
savings and loan holding companies to file; and 72 burden hours for
intermediate holding companies to file.
FDIC
OMB Control No.: 3064-0159.
Estimated Number of Respondents: 2 insured state nonmember banks
and state savings associations.
Estimated Time per Response: 674 burden hours per quarter to file.
Estimated Total Annual Burden: 5,392 burden hours to file.
Type of Review: Extension and revision of currently approved
collections.
General Description of Reports
Each advanced approaches institution \14\ is required to report
quarterly regulatory capital data on the FFIEC 101. The FFIEC 101
information collection is mandatory for advanced approaches
institutions: 12 U.S.C. 161 (national banks), 12 U.S.C. 324 (state
member banks), 12 U.S.C. 1844(c) (bank holding companies), 12 U.S.C.
1467a(b) (savings and loan holding companies), 12 U.S.C. 1817 (insured
state nonmember commercial and savings banks), 12 U.S.C. 1464 (savings
associations), and 12 U.S.C. 1844(c), 3106, and 3108 (intermediate
holding companies). Certain data items in this information collection
are given confidential treatment under 5 U.S.C. 552(b)(4) and (8).
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\14\ See 12 CFR 3.100(b) (OCC); 12 CFR 217.100(b) (Board); 12
CFR 324.100(b) (FDIC).
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Abstract
The agencies use data reported in the FFIEC 101 to assess and
monitor the levels and components of each reporting
[[Page 4137]]
entity's capital requirements and the adequacy of the entity's capital
under the Advanced Capital Adequacy Framework; \15\ to evaluate the
impact of the Advanced Capital Adequacy Framework on individual
reporting entities and on an industry-wide basis and its competitive
implications; and to supplement on-site examination processes. The
reporting schedules also assist advanced approaches institutions in
understanding expectations relating to the system development necessary
for implementation and validation of the Advanced Capital Adequacy
Framework. Submitted data that are released publicly will also provide
other interested parties with information about advanced approaches
institutions' regulatory capital.
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\15\ 12 CFR part 3, subpart E (OCC); 12 CFR part 217, subpart E
(Board); 12 CFR part 324, subpart E (FDIC).
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Current Actions
I. Introduction
In response to the new credit losses standard, key elements of
which were outlined above in Section A of ``Supplementary Information,
I. Background,'' the agencies reviewed the existing FFIEC reports to
determine which reports may be affected by ASU 2016-13. As a result, on
September 28, 2018, the agencies requested comment for 60 days on a
proposal to revise and extend the following FFIEC reports: (1) Call
Reports (FFIEC 031, FFIEC 041, and FFIEC 051), (2) FFIEC 002 and FFIEC
002S, (3) FFIEC 030 and FFIEC 030S, and (4) FFIEC 101.\16\
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\16\ See 83 FR 49160 for a detailed description of the proposed
revisions resulting from both ASU 2016-13 and EGRRCPA.
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The agencies also reviewed the existing FFIEC reports to determine
which reports may be affected by EGRRCPA. As a result, additional
revisions were proposed for the Call Reports (FFIEC 031, FFIEC 041, and
FFIEC 051) and the FFIEC 101.
The comment period for the September 2018 notice ended on November
27, 2018. The agencies received comments on the proposals covered in
the notice from two entities, a bankers' association and a bank. The
commenters recommended clarifications to the language used in the
notice and associated reporting instructions, as well as clarifying
edits to the proposed revised reporting forms.
The agencies also reevaluated the proposed portfolio categories for
which disaggregated allowance information would begin to be reported by
institutions after adoption of ASU 2016-13 for held-to-maturity (HTM)
debt securities on Schedule RI-C, Part II, on the FFIEC 031 and FFIEC
041. The agencies determined that separate reporting of allowances on
HTM mortgage-backed securities issued or guaranteed by U.S. government
agencies or sponsored agencies and other HTM mortgage-backed
securities, which had been proposed in the September 2018 notice, is
not needed because, at present, the former category of mortgage-backed
securities would likely have zero expected credit losses. As a result,
the agencies propose to combine these portfolio categories and collect
only one data item, rather than two data items, for the total
allowances on an institution's HTM mortgage-backed securities.
In addition, in December 2018, the agencies approved a final rule
amending their capital rule to address CECL.\17\ The final rule
included revised terminology for the allowance balance eligible for
inclusion in regulatory capital.\18\ The agencies plan to make a
conforming terminology revision for the reporting of regulatory capital
on Schedule RC-R.
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\17\ The final rule has been scheduled for publication in the
Federal Register on February 14, 2019.
\18\ The agencies' final rule uses the term ``adjusted
allowances for credit losses'' for regulatory capital purposes to
distinguish such allowances from allowances for credit losses for
accounting purposes.
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After considering these comments, the agencies will proceed with
the revisions proposed in the September 2018 notice to the FFIEC 031,
FFIEC 041, FFIEC 051, FFIEC 002, FFIEC 002S, FFIEC 030, FFIEC 030S, and
FFIEC 101, as originally proposed, with some modification to the FFIEC
031 and FFIEC 041, as noted above. The agencies will incorporate
appropriate clarifying edits suggested by commenters in the updated
instruction books and report forms. The agencies are now submitting
requests to OMB for review and approval of the extension, with
revisions, of the following FFIEC reports: (1) Call Reports (FFIEC 031,
FFIEC 041, and FFIEC 051), (2) FFIEC 030 and FFIEC 030S, and (3) FFIEC
101. The Board is now submitting the FFIEC 002 and the FFIEC 002S to
OMB for review and approval of the extension, with revisions, on behalf
of the agencies.
IV. Timing
Subject to OMB approval, the proposed revisions related to ASU
2016-13 would begin to take effect March 31, 2019, for reports with
quarterly report dates, and December 31, 2019, for reports with an
annual report date, with later effective dates for certain respondents.
The specific wording of the captions for the new or revised Call Report
data items discussed in the September 2018 notice and the numbering of
these data items, as identified in that notice, are subject to change.
This notice also includes other revisions to the Call Reports and
the FFIEC 101 resulting from two sections of EGRRCPA, effective upon
enactment on May 24, 2018, that affect the information reported in
these reports and for which the agencies submitted emergency review
requests to OMB that OMB has approved.
V. Request for Comment
Public comment is requested on all aspects of this joint notice.
Comment is specifically invited on:
(a) Whether the proposed revisions to the collections of
information that are the subject of this notice are necessary for the
proper performance of the agencies' functions, including whether the
information has practical utility;
(b) The accuracy of the agencies' estimates of the burden of the
information collections as they are proposed to be revised, including
the validity of the methodology and assumptions used;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of information collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Comments submitted in response to this joint notice will be shared
among the agencies. All comments will become a matter of public record.
Dated: February 5, 2019.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
Board of Governors of the Federal Reserve System, February 1,
2019.
Ann Misback,
Secretary of the Board.
Dated at Washington, DC, on February 1, 2019.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2019-02330 Filed 2-13-19; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P
