Agency Information Collection Activities: Submission for OMB Review; Joint Comment Request, 5618-5623 [2015-02056]
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Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices
statement: ‘‘Comments on PHMSA–
2015–0003.’’ The Docket Clerk will date
stamp the postcard prior to returning it
to you via the U.S. mail. Please note that
due to delays in the delivery of U.S.
mail to Federal offices in Washington,
DC, we recommend that persons
consider an alternative method
(internet, fax, or professional delivery
service) of submitting comments to the
docket and ensuring their timely receipt
at DOT.
Privacy Act Statement: In accordance
with the Paperwork Reduction Act of
1995, PHMSA solicits comments from
the public to better inform its
information collection process. PHMSA
posts these comments, without edit,
including any personal information the
commenter provides, to
www.regulations.gov, as described in
the system of records notice (DOT/ALL–
14 FDMS), which can be reviewed at
www.dot.gov/privacy.
FOR FURTHER INFORMATION CONTACT:
Cameron Satterthwaite by telephone at
202–366–1319 or by email at
cameron.satterthwaite@dot.gov
SUPPLEMENTARY INFORMATION: Section
1320.8(d), Title 5, Code of Federal
Regulations, requires PHMSA to provide
interested members of the public and
affected agencies an opportunity to
comment on information collection and
recordkeeping requests. This notice
identifies an information collection
request PHMSA will submit to OMB for
renewal. The following information is
provided for each information
collection: (1) Title of the information
collection; (2) OMB control number; (3)
Current expiration date; (4) Type of
request; (5) Abstract of the information
collection activity; (6) Description of
affected public; (7) Estimate of total
annual reporting and recordkeeping
burden; and (8) Frequency of collection.
PHMSA will request a three-year term of
approval for each information collection
activity. PHMSA requests comments on
the following information collections:
1. Title: Pipeline Safety: Periodic
Underwater Inspection and Notification
of Abandoned Underwater Pipelines.
OMB Control Number: 2137–0618.
Current Expiration Date: 8/31/2015.
Type of Request: Renewal of a
currently approved information
collection.
Abstract: The Federal pipeline safety
regulations at 49 CFR 192.612 and
195.413 require operators to conduct
appropriate periodic underwater
inspections in the Gulf of Mexico and
its inlets. If an operator discovers that
its underwater pipeline is exposed or
poses a hazard to navigation, among
other remedial actions such as marking
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and reburial in some cases, the operator
must contact the National Response
Center by telephone within 24 hours of
discovery and report the location of the
exposed pipeline.
PHMSA’s regulations for reporting the
abandonment of underwater pipelines
can be found at §§ 192.727 and 195.59.
These provisions contain certain
requirements for disconnecting and
purging abandoned pipelines and
require operators to notify PHMSA of
each abandoned offshore pipeline
facility or each abandoned onshore
pipeline facility that crosses over, under
or through a commercially navigable
waterway.
Affected Public: Operators of pipeline
facilities (except master meter
operators).
Annual Reporting and Recordkeeping
Burden:
Estimated number of responses: 92.
Estimated annual burden hours:
1,372.
Frequency of collection: On occasion.
Comments are invited on:
(a) The need for the renewal and
revision of these collections of
information for the proper performance
of the functions of the agency, including
whether the information will have
practical utility;
(b) The accuracy of the agency’s
estimate of the burden of the proposed
collection of information, including the
validity of the methodology and
assumptions used;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected; and
(d) Ways to minimize the burden of
the collection of information on those
who are to respond, including the use
of appropriate automated, electronic,
mechanical, or other technological
collection techniques.
Authority: The Paperwork Reduction Act
of 1995; 44 U.S.C. Chapter 35, as amended;
and 49 CFR 1.48.
Issued in Washington, DC on January 27,
2015, under authority delegated in 49 CFR
1.97.
John A. Gale,
Director, Office of Standards and
Rulemaking.
[FR Doc. 2015–01838 Filed 1–30–15; 8:45 am]
BILLING CODE 4910–60–P
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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; Joint Comment Request
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: Notice of information
collections to be submitted to Office of
Management and Budget (OMB) for
review and approval under the
Paperwork Reduction Act of 1995.
AGENCIES:
In accordance with the
requirements of the Paperwork
Reduction Act (PRA) of 1995 (44 U.S.C.
chapter 35), the OCC, the Board, and the
FDIC (the agencies) may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid OMB control number. On June 23,
2014, the agencies, under the auspices
of the Federal Financial Institutions
Examination Council (FFIEC), requested
public comment for 60 days on
proposed revisions to the risk-weighted
assets portion of Schedule RC–R,
Regulatory Capital, and to line items
related to securities lent and borrowed
in Schedule RC–L, Derivatives and OffBalance Sheet Items, in the
Consolidated Reports of Condition and
Income (Call Report or FFIEC 031 and
FFIEC 041). The proposed revisions to
the Call Report are consistent with the
revised regulatory capital rules
approved by the agencies in July 2013
(revised regulatory capital rules).
After considering the comments
received on the proposed revisions, the
FFIEC and the agencies will proceed
with the proposed reporting revisions
with some modifications as described in
sections II, III, and IV of the
SUPPLEMENTARY INFORMATION section
below. For all institutions required to
file the Call Report, the proposed
revised risk-weighted assets portion of
Schedule RC–R and the proposed
changes to Schedule RC–L would take
effect as of the March 31, 2015, report
date.
DATES: Comments must be submitted on
or before March 4, 2015.
ADDRESSES: Interested parties are
invited to submit written comments to
SUMMARY:
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any or all of the agencies. All comments,
which should refer to the OMB control
number(s), will be shared among the
agencies.
OCC: Commenters are encouraged to
submit comments by email. Please use
the title ‘‘FFIEC 031 and 041’’ to
facilitate the organization and
distribution of the comments. You may
submit comments by any of the
following methods:
• Email: regs.comments@occ.
treas.gov.
• Mail: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
Street SW., Suite 3E–218, Mail Stop
9W–11, Washington, DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW., Suite 3E–218, Mail Stop
9W–11, Washington, DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘FFIEC
031 and 041’’ in your comment. In
general, OCC will enter all comments
received into the docket and publish
them on the Regulations.gov Web site
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
enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may personally inspect and
photocopy 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. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and to submit to security screening in
order to inspect and photocopy
comments.
Board: You may submit comments,
which should refer to ‘‘FFIEC 031 and
FFIEC 041,’’ by any of the following
methods:
• Agency Web site: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at:
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: regs.comments@
federalreserve.gov. Include the reporting
form numbers in the subject line of the
message.
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• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Robert DeV. Frierson,
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 Web site at https://
www.federalreserve.gov/apps/foia/
proposedregs.aspx 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 in Room MP–500 of the Board’s
Martin Building (20th and C Streets
NW.) between 9:00 a.m. and 5:00 p.m.
on weekdays.
FDIC: You may submit comments,
which should refer to ‘‘FFIEC 031 and
FFIEC 041,’’ by any of the following
methods:
• Agency Web site: https://www.fdic.
gov/regulations/laws/federal/. Follow
the instructions for submitting
comments on the FDIC Web site.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: comments@FDIC.gov.
Include ‘‘FFIEC 031 and FFIEC 041’’ in
the subject line of the message.
• Mail: Gary A. Kuiper, Counsel,
Attn: Comments, Room NYA–5046,
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 Call Report discussed in
this notice, please contact any of the
agency staff whose names appear below.
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In addition, copies of the revised FFIEC
031 and FFIEC 041 forms and
instructions can be obtained at the
FFIEC’s Web site (https://www.ffiec.gov/
ffiec_report_forms.htm).
OCC: Kevin Korzeniewski, Attorney,
(202) 649–5490, for persons who are
deaf or hard of hearing, TTY, (202) 649–
5597, Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
Street SW., Washington, DC 20219.
Board: John Schmidt, Federal Reserve
Board Clearance Officer, (202) 728–
5859, Division of Research and
Statistics, 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: Gary A. Kuiper, Counsel, (202)
898–3877, and John Popeo, Counsel,
(202) 898–6923, Legal Division, Federal
Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: The
agencies are proposing to revise and
extend for three years the Call Report,
which is currently an approved
collection of information for each
agency.
Report Title: Consolidated Reports of
Condition and Income (Call Report).
Form Number: FFIEC 031 (for banks
and savings associations with domestic
and foreign offices) and FFIEC 041 (for
banks and savings associations with
domestic offices only).
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.
OCC:
OMB Number: 1557–0081.
Estimated Number of Respondents:
1,675 national banks and federal savings
associations.
Estimated Time per Response: 59.64
burden hours per quarter to file.
Estimated Total Annual Burden:
399,588 burden hours to file.
Board:
OMB Number: 7100–0036.
Estimated Number of Respondents:
846 state member banks.
Estimated Time per Response: 60.07
burden hours per quarter to file.
Estimated Total Annual Burden:
203,277 burden hours to file.
FDIC:
OMB Number: 3064–0052.
Estimated Number of Respondents:
4,237 insured state nonmember banks
and state savings associations.
Estimated Time per Response: 44.74
burden hours per quarter to file.
Estimated Total Annual Burden:
758,254 burden hours to file.
The estimated time per response for
the quarterly filings of the Call Report
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is an average that varies by agency
because of differences in the
composition of the institutions under
each agency’s supervision (e.g., size
distribution of institutions, types of
activities in which they are engaged,
and existence of foreign offices). The
average reporting burden for the filing of
the Call Report as it is proposed to be
revised is estimated to range from 20 to
775 hours per quarter, depending on an
individual institution’s circumstances.
General Description of Reports
The Call Report information
collections are mandatory for the
following institutions: 12 U.S.C. 161
(national banks), 12 U.S.C. 324 (state
member banks), 12 U.S.C. 1817 (insured
state nonmember banks), and 12 U.S.C.
1464 (savings associations). At present,
except for selected data items, the Call
Report information collections are not
given confidential treatment.
Abstract
Institutions 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
provide the most current statistical data
available for evaluating institutions’
corporate applications, identifying areas
of focus for on-site and off-site
examinations, and monetary and other
public policy purposes. The agencies
use Call Report data in evaluating
interstate merger and acquisition
applications to determine, as required
by law, whether the resulting institution
would control more than ten 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.
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Current Actions
I. Summary of the Proposed Revisions
On June 23, 2014, the agencies
requested comment on proposed
revisions to the risk-weighted assets
portion of Schedule RC–R, and to line
items related to securities lent and
borrowed in Schedule RC–L, in the Call
Report (the proposal).1 The revisions
would become effective for the March
31, 2015, report date.
The agencies collectively received
comments on the proposal from three
entities: One banking organization, one
consulting firm, and one U.S.
1 See
79 FR 35634.
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government agency. In addition, the
Board received comments from three
entities—two banking organizations and
one bankers’ association—on proposed
revisions to the reporting of riskweighted assets in Schedule HC–R of
the Consolidated Financial Statements
for Holding Companies (FR Y–9C; OMB
No. 7100–0128). In this instance, the
agencies considered the comments on
the proposed revisions to the FR Y–9C
because they parallel the proposed
revisions to the Call Report.
Collectively, the commenters asked for
(1) clarification on the applicability of
the proposed reporting requirements, (2)
additional new items, (3) combining two
items, (4) opening certain risk-weight
categories for some items, and (5)
clarification of or additional
instructions for certain line items.2
One commenter noted that in several
places the proposed reporting
instructions refer the reader to the
agencies’ regulatory capital rules for
additional information.3 The commenter
requested that the agencies incorporate
the information from the regulatory
capital rules into the reporting
instructions. The agencies believe that
adding such text to the reporting
instructions will unduly add significant
length to the instructions, and do not
believe it is necessary to incorporate the
complete text of the agencies’ regulatory
capital rules into the reporting
instructions. However, the agencies will
revise the proposed reporting
instructions to more clearly crossreference the regulatory capital rules.
One commenter requested the
addition of a separate line item for total
equity exposures, while another
commenter requested the addition of a
three-way breakout of equity exposures
to investment funds similar to that
found in the Regulatory Capital
Reporting for Institutions Subject to the
Advanced Capital Adequacy Framework
(FFIEC 101).4 The FFIEC 101 requires
institutions to report equity exposures
to investment funds by the methodology
used to risk weight these exposures. The
agencies do not believe it is necessary
to add line items for reporting equity
exposures by risk-weighting
methodology to the Call Report.
Furthermore, the agencies will not
import into the Call Report the equity
2 In addition, one of the commenters on the
proposal requested the collection of new
information unrelated to the scope of this proposal.
3 78 FR 62018 (Oct. 11, 2013) (OCC and Board)
and 78 FR 55340 (Sept. 10, 2013) (FDIC).
4 FFIEC 101—Regulatory Capital Reporting for
Institutions Subject to the Advanced Capital
Adequacy Framework: for the OCC, OMB No. 1557–
0239; for the Board, OMB No. 7100–0319; and for
the FDIC, OMB No. 3064–0159.
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exposure reporting template found in
the FFIEC 101 because this would add
complexity and burden for smaller
institutions that complete the Call
Report. However, because of the
approaches available for risk weighting
investments in investment funds
(including mutual funds), the agencies
will add data items for reporting the
exposure amount and risk-weighted
asset amount of such investments to the
appropriate balance sheet asset
categories. The agencies also will
include more detailed guidance related
to equity exposure reporting in the final
instructions for Schedule RC–R, Part II.
Comments received on specific line
items in Schedule RC–R, Part II, and
Schedule RC–L, are addressed in
sections II and IV below.
II. Proposed Revised Call Report
Schedule RC–R, Part II
The agencies proposed to revise the
reporting requirements for the riskweighted assets portion of Call Report
Schedule RC–R, Regulatory Capital, by
incorporating the standardized
approach, consistent with the revised
regulatory capital rules. Compared to
the current schedule, the proposed riskweighted assets portion of Schedule
RC–R would provide a more detailed
breakdown of on-balance sheet asset
and off-balance sheet item categories,
remove the ratings-based approach from
the calculation of risk-weighted assets,
reflect reporting of alternative riskweighting approaches not reliant on
credit ratings, and include an expanded
number of risk-weight categories,
consistent with the revised regulatory
capital rules. As originally proposed,
Schedule RC–R, Part II, Risk-Weighted
Assets, would be divided into the
following sections: (A) On-balance sheet
asset categories and securitization
exposures; (B) derivatives and offbalance sheet items; (C) totals; and (D)
memoranda items for derivatives.
A brief description of each of these
sections and the corresponding line
items and the comments received on
specific line items in Schedule RC–R,
Part II, are provided below.
A. Schedule RC–R, Part II, Items 1–11:
Balance Sheet Asset Categories and
Securitization Exposures
Proposed line items 1 through 8
reflect on-balance sheet asset categories
(excluding those assets within each
category that meet the definition of a
securitization exposure), similar to the
asset categories included in the current
version of Schedule RC–R, but the
proposed items would capture greater
reporting detail. The number of riskweight categories to which the
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individual assets in each asset category
would be allocated would be expanded
consistent with the revised regulatory
capital rules. On-balance sheet assets
and off-balance sheet items that meet
the definition of a securitization
exposure would be reported in items 9
and 10, respectively.
Two commenters noted that several
risk-weight categories for item 8, ‘‘Other
assets,’’ on the proposed reporting form
are not available for data input (i.e., the
categories are shaded out), but the
commenters stated the categories may
be applicable, particularly to address
the exposures underlying separate
account bank-owned life insurance
(BOLI) assets. The agencies agree with
these comments and, because of the
risk-weighting approaches that can be
applied to separate account BOLI assets,
will provide new data items for the
exposure amount and risk-weighted
asset amount of these BOLI assets,
which would be reported separately
from the other risk weightings within
item 8, ‘‘Other assets.’’ In addition, the
agencies will allow data input in the
150 percent and 300 percent risk-weight
categories for item 8, ‘‘Other assets.’’
One commenter requested
clarification of the reporting in item 8 of
default fund contributions (DFCs) made
by the reporting institution to qualifying
central counterparties (QCCPs). The
commenter noted that the proposed
reporting instructions for item 8 state
that such contributions should be
allocated to the risk-weight categories
defined for column B through column
Q. However, the commenter observed
that DFCs to QCCPs are subject to two
alternative methodologies (Methods 1
and 2) for calculating risk-weighted
assets, one of which may result in risk
weightings not captured in column B
through column Q.
In response to this comment, the
agencies will provide new data items for
the exposure amount and risk-weighted
asset amount of DFCs to QCCPs, which
would be reported separately from the
risk weightings otherwise captured in
item 8. The instructions would describe
how to use these data items to report
DFCs under Method 1 as well as Method
2.
One commenter noted that items 2
through 8 could include securitization
exposures, and when added with item 9,
‘‘On-balance sheet securitization
exposures,’’ would double count such
exposures in reporting item 11, ‘‘Total
assets.’’ The agencies note that the
reporting instructions for each proposed
balance sheet asset category (items 1
through 8) explicitly state that the
reporting institution is to exclude
securitization exposures. Nevertheless,
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the agencies will clarify the proposed
reporting form by adding guidance
explicitly stating that institutions
should exclude securitization exposures
from items 2 through 8 and report them
in item 9.5
Although the proposed report form
and instructions addressed the reporting
of an institution’s securitization
exposures and the treatment of financial
collateral, the agencies noted during
their review of the proposal that it did
not clearly address the risk weighting
and reporting of assets and certain other
items secured by financial collateral in
the form of securitization exposures or
mutual funds, nor did it fully address
the two approaches for recognizing the
effects of qualifying financial collateral.
The approaches for risk weighting
securitization exposures and
investments in mutual funds also are
applicable to such exposures when they
serve as financial collateral. To
accommodate the possible risk weight
outcomes when exposures are secured
by these types of collateral, the agencies
will include data items in new columns
R and S for reporting the exposure
amount and risk-weighted asset amount
of these collateralized exposures
separately from the other risk
weightings within appropriate balance
sheet asset categories (and derivative
and off-balance sheet item categories).
B. Schedule RC–R, Part II, Items 12–22:
Derivatives, Off-Balance Sheet Items,
and Other Items Subject To Risk
Weighting
Proposed line items 12 through 22
pertain to the reporting of derivatives,
off-balance sheet items, and other items
subject to risk weighting, excluding
those that meet the definition of a
securitization exposure (which are
reported in item 10 as discussed above).
One commenter noted that in
accordance with section 37 of the
agencies’ revised regulatory capital
rules, banking organizations must
calculate the exposure amount and riskweighted assets for repo-style
transactions on a netting set basis. A
netting set may contain transactions that
are reported as assets, liabilities, and
off-balance sheet items (as long as they
are executed under the same master
netting agreement), and the basis for the
risk-weighted assets calculation is the
net exposure, adjusted for volatility and
foreign exchange haircuts. As proposed,
Schedule RC–R, Part II, would have
5 The agencies will add a similar clarification to
the proposed reporting form regarding derivatives
and off-balance sheet items that are securitization
exposures by explicitly stating that institutions
should exclude them from items 12 through 21 and
report them in item 10.
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split the reporting of repo-style
transactions between assets (reported in
item 3, ‘‘Federal funds sold and
securities purchased under agreements
to resell,’’ i.e., reverse repos) and
liabilities and off-balance sheet items
(reported in item 16, ‘‘Repo-style
transactions (excluding reverse repos)’’).
However, since risk-weighted assets for
repo-style transactions are based on the
net exposure at a netting set level
(inclusive of volatility and foreign
exchange haircuts), the proposal’s
method for allocating repo-style
transaction exposures between two
reporting items and across the riskweight categories in a way that would
tie back to the amounts required to be
reported in column A of Schedule RC–
R, Part II (i.e., for item 3, the balance
sheet carrying amount, and for item 16,
the notional value), does not align with
the treatment of repo-style transactions
under the revised regulatory capital
rules. The commenter recommended
that the agencies amend the reporting
form to collect all repo-style
transactions in a single item, and
amounts attributed to risk-weighting
categories for this item would tie to an
‘‘exposure’’ amount reported in Column
A.
The agencies agree with this comment
and will revise the proposed item 16 of
Schedule RC–R, Part II, to include all
repo-style transactions in a retitled item
16, ‘‘Repo-style transactions,’’ which
will now also include securities
purchased under agreements to resell
(reverse repos) in order for institutions
to calculate their exposure based on
master netting set agreements. In
addition, consistent with the Call Report
balance sheet (Schedule RC), proposed
item 3 of Schedule RC–R, Part II, will be
split into item 3.a, ‘‘Federal funds sold
(in domestic offices),’’ and item 3.b,
‘‘Securities purchased under agreements
to resell.’’ However, after an institution
reports the balance sheet carrying
amount of its reverse repos in column
A of item 3.b, it would report this same
amount as an adjustment in column B
of item 3.b, resulting in no allocation of
the balance sheet carrying amount of
reverse repos across the risk-weight
categories in item 3. This reporting
methodology will ensure that the sum of
the balance sheet asset amounts
reported in items 1 through 9, column
A, of Schedule RC–R, Part II, that an
institution will report in item 11 of
Schedule RC–R, Part II, will continue to
equal the ‘‘Total assets’’ reported in item
12 of the Call Report balance sheet
(Schedule RC).
Another commenter noted that, under
the agencies’ revised regulatory capital
rules, a banking organization is required
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to hold risk-based capital against all
repo-style transactions, regardless of
whether the transactions generate onbalance sheet exposures. The
commenter also noted that the proposed
reporting instructions for Schedule RC–
R, Part II, state that ‘‘Although securities
sold under agreements to repurchase are
reported on the balance sheet (Schedule
RC) as liabilities, they are treated as offbalance sheet items under the regulatory
capital rules.’’ The commenter then
questioned the intent of the agencies’
proposed reporting form that would
require an institution to calculate a
capital charge for these ‘‘off-balance
sheet items’’ despite the fact that the
security pledged by the institution as
collateral for the repo remains on the
balance sheet for accounting purposes
and would therefore attract a separate
on-balance sheet risk weighting. The
agencies adopted this reporting
approach for consistency with the
revised regulatory capital rules, which
recognize that institutions face
counterparty credit risk when engaging
in repo-style transactions. However,
under certain conditions, the agencies’
revised regulatory capital rules also
allow institutions to recognize the risk
mitigating effects of financial collateral
when risk weighting their repo-style
exposures. The final reporting form and
instructions for Schedule RC–R, Part II,
would implement this treatment of
repo-style transactions, which is set
forth in the revised regulatory capital
rules.
The final version of Schedule RC–R,
Part II, will also include a new line item
22, ‘‘Unsettled transactions (failed
trades),’’ in order to more clearly assess
risk-based capital against delayed trades
where the counterparty has failed to
deliver an instrument or make a
required payment in a timely manner.
mstockstill on DSK4VPTVN1PROD with NOTICES
C. Schedule RC–R, Part II, Items 23–31:
Totals
Proposed items 23 through 31 apply
the risk-weight factors to the exposure
amounts reported for assets, derivatives,
off-balance sheet items, and other items
subject to risk weighting in items 11
through 22 and then calculate an
institution’s total risk-weighted assets.
The agencies did not receive any
additional comments on these line items
and thus would largely retain the
proposed line items without
modification.
D. Schedule RC–R, Part II,
Memorandum Items 1–3: Derivatives
In proposed memorandum items 1
through 3, an institution would report
the current credit exposure and notional
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Jkt 235001
principal amounts of its derivative
contracts.
Memorandum item 1 would continue
to collect the ‘‘Current credit exposure
across all derivative contracts covered
by the risk-based capital standards.’’
One commenter noted that, prior to the
proposed revisions, the instructions for
Memorandum item 1 stated that all
written option contracts (except those
that are, in substance, financial
guarantees) are not covered by the riskbased capital standards. However, this
statement was omitted from the
proposed instructions for Memorandum
item 1. The commenter asked if this was
an explicit change in the reporting of
written option contracts. Written option
contracts continue to be excluded from
reporting in Memorandum item 1,
consistent with the revised regulatory
capital rules. The agencies will clarify
this exclusion in the proposed
instructions for Memorandum item 1.
Existing Memorandum item 2 would
be revised to provide for separate
reporting, by remaining maturity and
type of contract, of the notional
principal amounts of the institution’s
over-the-counter and centrally cleared
derivative contracts subject to the
revised regulatory capital rules.
III. Treatment of Financial Subsidiaries
During the review of the proposed
forms and instructions, the agencies
noted that the instructions were not
clear regarding the treatment of assets
and liabilities of financial subsidiaries
for purposes of the capital calculations.
Pursuant to 12 U.S.C. 24a(c), all assets
and liabilities of financial subsidiaries
must be deconsolidated and deducted
for purposes of determining an
institution’s compliance with the
agencies’ regulatory capital standards.
While the statutory treatment was
explicitly included in the prior
instructions, it was inadvertently
omitted from the proposed instructions
for Schedule RC–R, Part II. Therefore,
the agencies will include language in
the instructions specifically addressing
the treatment of financial subsidiaries.
Generally, any assets of financial
subsidiaries reported in Call Report
Schedule RC, Balance Sheet, and
therefore included in the balance sheet
amounts reported in column A of
Schedule RC–R, Part II, would be
reported as deductions in column B of
Schedule RC–R, Part II. Derivatives and
off-balance sheet items of financial
subsidiaries would not be included for
purposes of applying credit conversion
factors and risk weighting in the
remainder of Schedule RC–R, Part II.
In addition, the agencies will clarify
the instructions for the calculation of
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Sfmt 4703
total assets for leverage ratio purposes in
Schedule RC–R, Part I.B, to state that the
assets of financial subsidiaries reported
in Schedule RC, Balance Sheet, must be
reported as a deduction in item 38 of
Part I.B.
IV. Proposed Changes to Call Report
Schedule RC–L
Call Report Schedule RC–L collects
regulatory data on derivatives and offbalance sheet items. The agencies
proposed to revise the reporting
requirements for off-balance sheet
exposures related to securities lent and
borrowed, consistent with the revised
regulatory capital rules. Compared to
the current schedule, the proposed
changes to Schedule RC–L would
require all institutions to report the
amount of securities borrowed. At
present, institutions include the amount
of securities borrowed in the total
amount of all other off-balance sheet
liabilities reported in item 9 of Schedule
RC–L if the amount of securities
borrowed is more than 10 percent of
total bank equity capital and they
disclose the amount of securities
borrowed if that amount is more than 25
percent of total bank equity capital. In
addition, the proposed changes to
Schedule RC–L would place the line
item for securities borrowed in a new
item 6.b immediately after the line item
for securities lent, which would be
renumbered from item 6 to item 6.a.
One commenter noted that the current
instructions for item 9 state to ‘‘report
all securities borrowed against collateral
(other than cash)’’ for such purposes as
serving ‘‘as a pledge against deposit
liabilities or delivery against short
sales,’’ whereas the current instructions
for item 6 state to report all securities
owned that are ‘‘lent against collateral
or on an uncollateralized basis.’’ The
commenter characterizes current item 9
as inclusive of only certain types of
securities borrowings such as those
collateralized by ‘‘other than cash’’ and
those ‘‘for purposes as a pledge against
deposit liabilities or short sales,’’
whereas current item 6 covers all types
of securities lending regardless of the
type of collateral. The commenter asks
for clarification of the scope of these
two items.
Similar to current item 6 of Schedule
RC–L, the instructions for item 6.b will
clarify that institutions should report all
types of securities borrowing, regardless
of collateral type. The phrase ‘‘other
than cash’’ will be deleted from the final
instructions for item 6.b of Schedule
RC–L.
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V. Initial Reporting
For the March 31, 2015, report date,
institutions may provide reasonable
estimates for any new or revised Call
Report items initially required to be
reported as of that date for which the
requested information is not readily
available.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015–02056 Filed 1–30–15; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Public comment is requested on all
aspects of this joint notice. In particular,
do institutions expect that making any
specific line items on the proposed
revised risk-weighted assets portion of
Call Report Schedule RC–R public
would cause them competitive or other
harm? If so, identify the specific line
items and describe in detail the nature
of the harm.
Additionally, comments are invited
on:
(a) Whether 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
VI. Request for Comment
Proposed Collection
Dated: January 22, 2015.
Stuart Feldstein,
Director, Legislative and Regulatory Activities
Division, Office of the Comptroller of the
Currency.
By order of the Board of Governors of the
Federal Reserve System, January 26, 2015.
Robert deV. Frierson,
Secretary of the Board.
Dated at Washington, DC, this 21st day of
January, 2015.
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19:24 Jan 30, 2015
Jkt 235001
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
AGENCY:
The Department of the
Treasury, as part of its continuing effort
to reduce paperwork and respondent
burden, invites the general public and
other Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995,
Public Law 104–13 (44 U.S.C.
3506(c)(2)(A)). Currently, the IRS is
soliciting comments concerning
Conforming Adjustments Subsequent to
Section 482 Allocations.
DATES: Written comments should be
received on or before April 3, 2015 to
be assured of consideration.
ADDRESSES: Direct all written comments
to Christie Preston, Internal Revenue
Service, Room 6129, 1111 Constitution
Avenue NW., Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the regulations should be
directed to Sara Covington at Internal
Revenue Service, Room 6129, 1111
Constitution Avenue NW., Washington,
DC 20224, or through the Internet at
Sara.L.Covington@irs.gov.
SUPPLEMENTARY INFORMATION:
Title: Conforming Adjustments
Subsequent to Section 482 Allocations.
OMB Number: 1545–1657. Revenue
Procedure Number: Revenue Procedure
99–32.
Abstract: Revenue Procedure 99–32
provides guidance for conforming a
taxpayer’s accounts to reflect a primary
adjustment under Internal Revenue
Code section 482. The revenue
procedure prescribes the applicable
procedures for the repatriation of cash
by a United States taxpayer via an
interest-bearing account receivable or
SUMMARY:
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5623
payable in an amount corresponding to
the amount allocated under Code
section 482 from, or to, a related person
with respect to a controlled transaction.
Current Actions: There are no changes
being made to the revenue procedure at
this time.
Type of Review: Extension of a
currently approved collection.
Affected Public: Business or other forprofit organizations.
Estimated Number of Respondents:
180
Estimated Time per Respondent: 9
hours.
Estimated Total Annual Burden
Hours: 1,620.
The following paragraph applies to all
the collections of information covered
by this notice:
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB control number.
Books or records relating to a collection
of information must be retained as long
as their contents may become material
in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential,
as required by 26 U.S.C. 6103.
Request for Comments: Comments
submitted in response to this notice will
be summarized and/or included in the
request for OMB approval. All
comments will become a matter of
public record. Comments are invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; (d) ways to
minimize the burden of the collection of
information 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.
Approved: January 22, 2015.
Christie Preston,
IRS Reports Clearance Officer.
[FR Doc. 2015–01839 Filed 1–30–15; 8:45 am]
BILLING CODE 4830–01–P
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Agencies
[Federal Register Volume 80, Number 21 (Monday, February 2, 2015)]
[Notices]
[Pages 5618-5623]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-02056]
=======================================================================
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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; Joint Comment Request
AGENCIES: 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: Notice of information collections to be submitted to Office of
Management and Budget (OMB) for review and approval under the Paperwork
Reduction Act of 1995.
-----------------------------------------------------------------------
SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act (PRA) of 1995 (44 U.S.C. chapter 35), the OCC, the Board, and the
FDIC (the agencies) may not conduct or sponsor, and the respondent is
not required to respond to, an information collection unless it
displays a currently valid OMB control number. On June 23, 2014, the
agencies, under the auspices of the Federal Financial Institutions
Examination Council (FFIEC), requested public comment for 60 days on
proposed revisions to the risk-weighted assets portion of Schedule RC-
R, Regulatory Capital, and to line items related to securities lent and
borrowed in Schedule RC-L, Derivatives and Off-Balance Sheet Items, in
the Consolidated Reports of Condition and Income (Call Report or FFIEC
031 and FFIEC 041). The proposed revisions to the Call Report are
consistent with the revised regulatory capital rules approved by the
agencies in July 2013 (revised regulatory capital rules).
After considering the comments received on the proposed revisions,
the FFIEC and the agencies will proceed with the proposed reporting
revisions with some modifications as described in sections II, III, and
IV of the SUPPLEMENTARY INFORMATION section below. For all institutions
required to file the Call Report, the proposed revised risk-weighted
assets portion of Schedule RC-R and the proposed changes to Schedule
RC-L would take effect as of the March 31, 2015, report date.
DATES: Comments must be submitted on or before March 4, 2015.
ADDRESSES: Interested parties are invited to submit written comments to
[[Page 5619]]
any or all of the agencies. All comments, which should refer to the OMB
control number(s), will be shared among the agencies.
OCC: Commenters are encouraged to submit comments by email. Please
use the title ``FFIEC 031 and 041'' to facilitate the organization and
distribution of the comments. You may submit comments by any of the
following methods:
Email: regs.comments@occ.treas.gov.
Mail: Legislative and Regulatory Activities Division,
Office of the Comptroller of the Currency, 400 7th Street SW., Suite
3E-218, Mail Stop 9W-11, Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW., Suite 3E-218,
Mail Stop 9W-11, Washington, DC 20219.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``FFIEC 031 and 041'' in your comment. In general, OCC will enter all
comments received into the docket and publish them on the
Regulations.gov Web site 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 enclose any
information in your comment or supporting materials that you consider
confidential or inappropriate for public disclosure.
You may personally inspect and photocopy 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. Upon arrival, visitors will be required to
present valid government-issued photo identification and to submit to
security screening in order to inspect and photocopy comments.
Board: You may submit comments, which should refer to ``FFIEC 031
and FFIEC 041,'' by any of the following methods:
Agency Web site: https://www.federalreserve.gov. Follow the
instructions for submitting comments at: https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: regs.comments@federalreserve.gov. Include the
reporting form numbers in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Robert DeV. Frierson, 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 Web site at
https://www.federalreserve.gov/apps/foia/proposedregs.aspx 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 in Room MP-500
of the Board's Martin Building (20th and C Streets NW.) between 9:00
a.m. and 5:00 p.m. on weekdays.
FDIC: You may submit comments, which should refer to ``FFIEC 031
and FFIEC 041,'' by any of the following methods:
Agency Web site: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC
Web site.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: comments@FDIC.gov. Include ``FFIEC 031 and FFIEC
041'' in the subject line of the message.
Mail: Gary A. Kuiper, Counsel, Attn: Comments, Room NYA-
5046, 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 Call Report discussed in this notice, please
contact any of the agency staff whose names appear below. In addition,
copies of the revised FFIEC 031 and FFIEC 041 forms and instructions
can be obtained at the FFIEC's Web site (https://www.ffiec.gov/ffiec_report_forms.htm).
OCC: Kevin Korzeniewski, Attorney, (202) 649-5490, for persons who
are deaf or hard of hearing, TTY, (202) 649-5597, Legislative and
Regulatory Activities Division, Office of the Comptroller of the
Currency, 400 7th Street SW., Washington, DC 20219.
Board: John Schmidt, Federal Reserve Board Clearance Officer, (202)
728-5859, Division of Research and Statistics, 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: Gary A. Kuiper, Counsel, (202) 898-3877, and John Popeo,
Counsel, (202) 898-6923, Legal Division, Federal Deposit Insurance
Corporation, 550 17th Street NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: The agencies are proposing to revise and
extend for three years the Call Report, which is currently an approved
collection of information for each agency.
Report Title: Consolidated Reports of Condition and Income (Call
Report).
Form Number: FFIEC 031 (for banks and savings associations with
domestic and foreign offices) and FFIEC 041 (for banks and savings
associations with domestic offices only).
Frequency of Response: Quarterly.
Affected Public: Business or other for-profit.
OCC:
OMB Number: 1557-0081.
Estimated Number of Respondents: 1,675 national banks and federal
savings associations.
Estimated Time per Response: 59.64 burden hours per quarter to
file.
Estimated Total Annual Burden: 399,588 burden hours to file.
Board:
OMB Number: 7100-0036.
Estimated Number of Respondents: 846 state member banks.
Estimated Time per Response: 60.07 burden hours per quarter to
file.
Estimated Total Annual Burden: 203,277 burden hours to file.
FDIC:
OMB Number: 3064-0052.
Estimated Number of Respondents: 4,237 insured state nonmember
banks and state savings associations.
Estimated Time per Response: 44.74 burden hours per quarter to
file.
Estimated Total Annual Burden: 758,254 burden hours to file.
The estimated time per response for the quarterly filings of the
Call Report
[[Page 5620]]
is an average that varies by agency because of differences in the
composition of the institutions under each agency's supervision (e.g.,
size distribution of institutions, types of activities in which they
are engaged, and existence of foreign offices). The average reporting
burden for the filing of the Call Report as it is proposed to be
revised is estimated to range from 20 to 775 hours per quarter,
depending on an individual institution's circumstances.
General Description of Reports
The Call Report information collections are mandatory for the
following institutions: 12 U.S.C. 161 (national banks), 12 U.S.C. 324
(state member banks), 12 U.S.C. 1817 (insured state nonmember banks),
and 12 U.S.C. 1464 (savings associations). At present, except for
selected data items, the Call Report information collections are not
given confidential treatment.
Abstract
Institutions 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 provide the most current statistical data available
for evaluating institutions' corporate applications, identifying areas
of focus for on-site and off-site examinations, and monetary and other
public policy purposes. The agencies use Call Report data in evaluating
interstate merger and acquisition applications to determine, as
required by law, whether the resulting institution would control more
than ten 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.
Current Actions
I. Summary of the Proposed Revisions
On June 23, 2014, the agencies requested comment on proposed
revisions to the risk-weighted assets portion of Schedule RC-R, and to
line items related to securities lent and borrowed in Schedule RC-L, in
the Call Report (the proposal).\1\ The revisions would become effective
for the March 31, 2015, report date.
---------------------------------------------------------------------------
\1\ See 79 FR 35634.
---------------------------------------------------------------------------
The agencies collectively received comments on the proposal from
three entities: One banking organization, one consulting firm, and one
U.S. government agency. In addition, the Board received comments from
three entities--two banking organizations and one bankers'
association--on proposed revisions to the reporting of risk-weighted
assets in Schedule HC-R of the Consolidated Financial Statements for
Holding Companies (FR Y-9C; OMB No. 7100-0128). In this instance, the
agencies considered the comments on the proposed revisions to the FR Y-
9C because they parallel the proposed revisions to the Call Report.
Collectively, the commenters asked for (1) clarification on the
applicability of the proposed reporting requirements, (2) additional
new items, (3) combining two items, (4) opening certain risk-weight
categories for some items, and (5) clarification of or additional
instructions for certain line items.\2\
---------------------------------------------------------------------------
\2\ In addition, one of the commenters on the proposal requested
the collection of new information unrelated to the scope of this
proposal.
---------------------------------------------------------------------------
One commenter noted that in several places the proposed reporting
instructions refer the reader to the agencies' regulatory capital rules
for additional information.\3\ The commenter requested that the
agencies incorporate the information from the regulatory capital rules
into the reporting instructions. The agencies believe that adding such
text to the reporting instructions will unduly add significant length
to the instructions, and do not believe it is necessary to incorporate
the complete text of the agencies' regulatory capital rules into the
reporting instructions. However, the agencies will revise the proposed
reporting instructions to more clearly cross-reference the regulatory
capital rules.
---------------------------------------------------------------------------
\3\ 78 FR 62018 (Oct. 11, 2013) (OCC and Board) and 78 FR 55340
(Sept. 10, 2013) (FDIC).
---------------------------------------------------------------------------
One commenter requested the addition of a separate line item for
total equity exposures, while another commenter requested the addition
of a three-way breakout of equity exposures to investment funds similar
to that found in the Regulatory Capital Reporting for Institutions
Subject to the Advanced Capital Adequacy Framework (FFIEC 101).\4\ The
FFIEC 101 requires institutions to report equity exposures to
investment funds by the methodology used to risk weight these
exposures. The agencies do not believe it is necessary to add line
items for reporting equity exposures by risk-weighting methodology to
the Call Report. Furthermore, the agencies will not import into the
Call Report the equity exposure reporting template found in the FFIEC
101 because this would add complexity and burden for smaller
institutions that complete the Call Report. However, because of the
approaches available for risk weighting investments in investment funds
(including mutual funds), the agencies will add data items for
reporting the exposure amount and risk-weighted asset amount of such
investments to the appropriate balance sheet asset categories. The
agencies also will include more detailed guidance related to equity
exposure reporting in the final instructions for Schedule RC-R, Part
II.
---------------------------------------------------------------------------
\4\ FFIEC 101--Regulatory Capital Reporting for Institutions
Subject to the Advanced Capital Adequacy Framework: for the OCC, OMB
No. 1557-0239; for the Board, OMB No. 7100-0319; and for the FDIC,
OMB No. 3064-0159.
---------------------------------------------------------------------------
Comments received on specific line items in Schedule RC-R, Part II,
and Schedule RC-L, are addressed in sections II and IV below.
II. Proposed Revised Call Report Schedule RC-R, Part II
The agencies proposed to revise the reporting requirements for the
risk-weighted assets portion of Call Report Schedule RC-R, Regulatory
Capital, by incorporating the standardized approach, consistent with
the revised regulatory capital rules. Compared to the current schedule,
the proposed risk-weighted assets portion of Schedule RC-R would
provide a more detailed breakdown of on-balance sheet asset and off-
balance sheet item categories, remove the ratings-based approach from
the calculation of risk-weighted assets, reflect reporting of
alternative risk-weighting approaches not reliant on credit ratings,
and include an expanded number of risk-weight categories, consistent
with the revised regulatory capital rules. As originally proposed,
Schedule RC-R, Part II, Risk-Weighted Assets, would be divided into the
following sections: (A) On-balance sheet asset categories and
securitization exposures; (B) derivatives and off-balance sheet items;
(C) totals; and (D) memoranda items for derivatives.
A brief description of each of these sections and the corresponding
line items and the comments received on specific line items in Schedule
RC-R, Part II, are provided below.
A. Schedule RC-R, Part II, Items 1-11: Balance Sheet Asset Categories
and Securitization Exposures
Proposed line items 1 through 8 reflect on-balance sheet asset
categories (excluding those assets within each category that meet the
definition of a securitization exposure), similar to the asset
categories included in the current version of Schedule RC-R, but the
proposed items would capture greater reporting detail. The number of
risk-weight categories to which the
[[Page 5621]]
individual assets in each asset category would be allocated would be
expanded consistent with the revised regulatory capital rules. On-
balance sheet assets and off-balance sheet items that meet the
definition of a securitization exposure would be reported in items 9
and 10, respectively.
Two commenters noted that several risk-weight categories for item
8, ``Other assets,'' on the proposed reporting form are not available
for data input (i.e., the categories are shaded out), but the
commenters stated the categories may be applicable, particularly to
address the exposures underlying separate account bank-owned life
insurance (BOLI) assets. The agencies agree with these comments and,
because of the risk-weighting approaches that can be applied to
separate account BOLI assets, will provide new data items for the
exposure amount and risk-weighted asset amount of these BOLI assets,
which would be reported separately from the other risk weightings
within item 8, ``Other assets.'' In addition, the agencies will allow
data input in the 150 percent and 300 percent risk-weight categories
for item 8, ``Other assets.''
One commenter requested clarification of the reporting in item 8 of
default fund contributions (DFCs) made by the reporting institution to
qualifying central counterparties (QCCPs). The commenter noted that the
proposed reporting instructions for item 8 state that such
contributions should be allocated to the risk-weight categories defined
for column B through column Q. However, the commenter observed that
DFCs to QCCPs are subject to two alternative methodologies (Methods 1
and 2) for calculating risk-weighted assets, one of which may result in
risk weightings not captured in column B through column Q.
In response to this comment, the agencies will provide new data
items for the exposure amount and risk-weighted asset amount of DFCs to
QCCPs, which would be reported separately from the risk weightings
otherwise captured in item 8. The instructions would describe how to
use these data items to report DFCs under Method 1 as well as Method 2.
One commenter noted that items 2 through 8 could include
securitization exposures, and when added with item 9, ``On-balance
sheet securitization exposures,'' would double count such exposures in
reporting item 11, ``Total assets.'' The agencies note that the
reporting instructions for each proposed balance sheet asset category
(items 1 through 8) explicitly state that the reporting institution is
to exclude securitization exposures. Nevertheless, the agencies will
clarify the proposed reporting form by adding guidance explicitly
stating that institutions should exclude securitization exposures from
items 2 through 8 and report them in item 9.\5\
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\5\ The agencies will add a similar clarification to the
proposed reporting form regarding derivatives and off-balance sheet
items that are securitization exposures by explicitly stating that
institutions should exclude them from items 12 through 21 and report
them in item 10.
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Although the proposed report form and instructions addressed the
reporting of an institution's securitization exposures and the
treatment of financial collateral, the agencies noted during their
review of the proposal that it did not clearly address the risk
weighting and reporting of assets and certain other items secured by
financial collateral in the form of securitization exposures or mutual
funds, nor did it fully address the two approaches for recognizing the
effects of qualifying financial collateral. The approaches for risk
weighting securitization exposures and investments in mutual funds also
are applicable to such exposures when they serve as financial
collateral. To accommodate the possible risk weight outcomes when
exposures are secured by these types of collateral, the agencies will
include data items in new columns R and S for reporting the exposure
amount and risk-weighted asset amount of these collateralized exposures
separately from the other risk weightings within appropriate balance
sheet asset categories (and derivative and off-balance sheet item
categories).
B. Schedule RC-R, Part II, Items 12-22: Derivatives, Off-Balance Sheet
Items, and Other Items Subject To Risk Weighting
Proposed line items 12 through 22 pertain to the reporting of
derivatives, off-balance sheet items, and other items subject to risk
weighting, excluding those that meet the definition of a securitization
exposure (which are reported in item 10 as discussed above).
One commenter noted that in accordance with section 37 of the
agencies' revised regulatory capital rules, banking organizations must
calculate the exposure amount and risk-weighted assets for repo-style
transactions on a netting set basis. A netting set may contain
transactions that are reported as assets, liabilities, and off-balance
sheet items (as long as they are executed under the same master netting
agreement), and the basis for the risk-weighted assets calculation is
the net exposure, adjusted for volatility and foreign exchange
haircuts. As proposed, Schedule RC-R, Part II, would have split the
reporting of repo-style transactions between assets (reported in item
3, ``Federal funds sold and securities purchased under agreements to
resell,'' i.e., reverse repos) and liabilities and off-balance sheet
items (reported in item 16, ``Repo-style transactions (excluding
reverse repos)''). However, since risk-weighted assets for repo-style
transactions are based on the net exposure at a netting set level
(inclusive of volatility and foreign exchange haircuts), the proposal's
method for allocating repo-style transaction exposures between two
reporting items and across the risk-weight categories in a way that
would tie back to the amounts required to be reported in column A of
Schedule RC-R, Part II (i.e., for item 3, the balance sheet carrying
amount, and for item 16, the notional value), does not align with the
treatment of repo-style transactions under the revised regulatory
capital rules. The commenter recommended that the agencies amend the
reporting form to collect all repo-style transactions in a single item,
and amounts attributed to risk-weighting categories for this item would
tie to an ``exposure'' amount reported in Column A.
The agencies agree with this comment and will revise the proposed
item 16 of Schedule RC-R, Part II, to include all repo-style
transactions in a retitled item 16, ``Repo-style transactions,'' which
will now also include securities purchased under agreements to resell
(reverse repos) in order for institutions to calculate their exposure
based on master netting set agreements. In addition, consistent with
the Call Report balance sheet (Schedule RC), proposed item 3 of
Schedule RC-R, Part II, will be split into item 3.a, ``Federal funds
sold (in domestic offices),'' and item 3.b, ``Securities purchased
under agreements to resell.'' However, after an institution reports the
balance sheet carrying amount of its reverse repos in column A of item
3.b, it would report this same amount as an adjustment in column B of
item 3.b, resulting in no allocation of the balance sheet carrying
amount of reverse repos across the risk-weight categories in item 3.
This reporting methodology will ensure that the sum of the balance
sheet asset amounts reported in items 1 through 9, column A, of
Schedule RC-R, Part II, that an institution will report in item 11 of
Schedule RC-R, Part II, will continue to equal the ``Total assets''
reported in item 12 of the Call Report balance sheet (Schedule RC).
Another commenter noted that, under the agencies' revised
regulatory capital rules, a banking organization is required
[[Page 5622]]
to hold risk-based capital against all repo-style transactions,
regardless of whether the transactions generate on-balance sheet
exposures. The commenter also noted that the proposed reporting
instructions for Schedule RC-R, Part II, state that ``Although
securities sold under agreements to repurchase are reported on the
balance sheet (Schedule RC) as liabilities, they are treated as off-
balance sheet items under the regulatory capital rules.'' The commenter
then questioned the intent of the agencies' proposed reporting form
that would require an institution to calculate a capital charge for
these ``off-balance sheet items'' despite the fact that the security
pledged by the institution as collateral for the repo remains on the
balance sheet for accounting purposes and would therefore attract a
separate on-balance sheet risk weighting. The agencies adopted this
reporting approach for consistency with the revised regulatory capital
rules, which recognize that institutions face counterparty credit risk
when engaging in repo-style transactions. However, under certain
conditions, the agencies' revised regulatory capital rules also allow
institutions to recognize the risk mitigating effects of financial
collateral when risk weighting their repo-style exposures. The final
reporting form and instructions for Schedule RC-R, Part II, would
implement this treatment of repo-style transactions, which is set forth
in the revised regulatory capital rules.
The final version of Schedule RC-R, Part II, will also include a
new line item 22, ``Unsettled transactions (failed trades),'' in order
to more clearly assess risk-based capital against delayed trades where
the counterparty has failed to deliver an instrument or make a required
payment in a timely manner.
C. Schedule RC-R, Part II, Items 23-31: Totals
Proposed items 23 through 31 apply the risk-weight factors to the
exposure amounts reported for assets, derivatives, off-balance sheet
items, and other items subject to risk weighting in items 11 through 22
and then calculate an institution's total risk-weighted assets. The
agencies did not receive any additional comments on these line items
and thus would largely retain the proposed line items without
modification.
D. Schedule RC-R, Part II, Memorandum Items 1-3: Derivatives
In proposed memorandum items 1 through 3, an institution would
report the current credit exposure and notional principal amounts of
its derivative contracts.
Memorandum item 1 would continue to collect the ``Current credit
exposure across all derivative contracts covered by the risk-based
capital standards.'' One commenter noted that, prior to the proposed
revisions, the instructions for Memorandum item 1 stated that all
written option contracts (except those that are, in substance,
financial guarantees) are not covered by the risk-based capital
standards. However, this statement was omitted from the proposed
instructions for Memorandum item 1. The commenter asked if this was an
explicit change in the reporting of written option contracts. Written
option contracts continue to be excluded from reporting in Memorandum
item 1, consistent with the revised regulatory capital rules. The
agencies will clarify this exclusion in the proposed instructions for
Memorandum item 1.
Existing Memorandum item 2 would be revised to provide for separate
reporting, by remaining maturity and type of contract, of the notional
principal amounts of the institution's over-the-counter and centrally
cleared derivative contracts subject to the revised regulatory capital
rules.
III. Treatment of Financial Subsidiaries
During the review of the proposed forms and instructions, the
agencies noted that the instructions were not clear regarding the
treatment of assets and liabilities of financial subsidiaries for
purposes of the capital calculations. Pursuant to 12 U.S.C. 24a(c), all
assets and liabilities of financial subsidiaries must be deconsolidated
and deducted for purposes of determining an institution's compliance
with the agencies' regulatory capital standards. While the statutory
treatment was explicitly included in the prior instructions, it was
inadvertently omitted from the proposed instructions for Schedule RC-R,
Part II. Therefore, the agencies will include language in the
instructions specifically addressing the treatment of financial
subsidiaries. Generally, any assets of financial subsidiaries reported
in Call Report Schedule RC, Balance Sheet, and therefore included in
the balance sheet amounts reported in column A of Schedule RC-R, Part
II, would be reported as deductions in column B of Schedule RC-R, Part
II. Derivatives and off-balance sheet items of financial subsidiaries
would not be included for purposes of applying credit conversion
factors and risk weighting in the remainder of Schedule RC-R, Part II.
In addition, the agencies will clarify the instructions for the
calculation of total assets for leverage ratio purposes in Schedule RC-
R, Part I.B, to state that the assets of financial subsidiaries
reported in Schedule RC, Balance Sheet, must be reported as a deduction
in item 38 of Part I.B.
IV. Proposed Changes to Call Report Schedule RC-L
Call Report Schedule RC-L collects regulatory data on derivatives
and off-balance sheet items. The agencies proposed to revise the
reporting requirements for off-balance sheet exposures related to
securities lent and borrowed, consistent with the revised regulatory
capital rules. Compared to the current schedule, the proposed changes
to Schedule RC-L would require all institutions to report the amount of
securities borrowed. At present, institutions include the amount of
securities borrowed in the total amount of all other off-balance sheet
liabilities reported in item 9 of Schedule RC-L if the amount of
securities borrowed is more than 10 percent of total bank equity
capital and they disclose the amount of securities borrowed if that
amount is more than 25 percent of total bank equity capital. In
addition, the proposed changes to Schedule RC-L would place the line
item for securities borrowed in a new item 6.b immediately after the
line item for securities lent, which would be renumbered from item 6 to
item 6.a.
One commenter noted that the current instructions for item 9 state
to ``report all securities borrowed against collateral (other than
cash)'' for such purposes as serving ``as a pledge against deposit
liabilities or delivery against short sales,'' whereas the current
instructions for item 6 state to report all securities owned that are
``lent against collateral or on an uncollateralized basis.'' The
commenter characterizes current item 9 as inclusive of only certain
types of securities borrowings such as those collateralized by ``other
than cash'' and those ``for purposes as a pledge against deposit
liabilities or short sales,'' whereas current item 6 covers all types
of securities lending regardless of the type of collateral. The
commenter asks for clarification of the scope of these two items.
Similar to current item 6 of Schedule RC-L, the instructions for
item 6.b will clarify that institutions should report all types of
securities borrowing, regardless of collateral type. The phrase ``other
than cash'' will be deleted from the final instructions for item 6.b of
Schedule RC-L.
[[Page 5623]]
V. Initial Reporting
For the March 31, 2015, report date, institutions may provide
reasonable estimates for any new or revised Call Report items initially
required to be reported as of that date for which the requested
information is not readily available.
VI. Request for Comment
Public comment is requested on all aspects of this joint notice. In
particular, do institutions expect that making any specific line items
on the proposed revised risk-weighted assets portion of Call Report
Schedule RC-R public would cause them competitive or other harm? If so,
identify the specific line items and describe in detail the nature of
the harm.
Additionally, comments are invited on:
(a) Whether 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: January 22, 2015.
Stuart Feldstein,
Director, Legislative and Regulatory Activities Division, Office of the
Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System, January 26, 2015.
Robert deV. Frierson,
Secretary of the Board.
Dated at Washington, DC, this 21st day of January, 2015.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015-02056 Filed 1-30-15; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P