Reduced Reporting for Covered Depository Institutions, 58432-58458 [2018-24587]
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Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules
DEPARTMENT OF TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 52
[Docket ID OCC–2018–0032]
RIN 1557–AE39
FEDERAL RESERVE SYSTEM
12 CFR Part 208
[Docket ID R–1618]
RIN 7100–AF12
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 304
RIN 3065–AE82
Reduced Reporting for Covered
Depository Institutions
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 proposed rulemaking
with request for public comment.
AGENCY:
The OCC, the Board, and the
FDIC (collectively, the agencies) are
inviting comment on a proposed rule
that would implement section 205 of the
Economic Growth, Regulatory Relief,
and Consumer Protection Act by:
Expanding the eligibility to file the
agencies’ most streamlined report of
condition, the FFIEC 051 Call Report, to
include certain insured depository
institutions with less than $5 billion in
total consolidated assets that meet other
criteria; and, establishing reduced
reporting on the FFIEC 051 Call Report
for the first and third reports of
condition for a year. The OCC and
Board also are proposing similar
reduced reporting for certain uninsured
institutions that they supervise with less
than $5 billion in total consolidated
assets that otherwise meet the same
criteria. This Federal Register notice
also includes a Paperwork Reduction
Act notice to reduce the amount of data
required to be reported on the FFIEC
051 Call Report for the first and third
calendar quarters, and other related
changes.
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SUMMARY:
Comments must be received by
January 18, 2019.
ADDRESSES: Comments should be
directed to:
DATES:
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OCC: You may submit comments to
the OCC by any of the methods set forth
below. Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal or email, if possible.
Please use the title ‘‘Reduced Reporting
for Covered Depository Institutions’’ to
facilitate the organization and
distribution of the comments. You may
submit comments by any of the
following methods:
• Federal eRulemaking Portal—
‘‘Regulations.gov’’: Go to
www.regulations.gov. Enter ‘‘Docket ID
OCC–2018–0032’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting
public comments.
• 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, Washington,
DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2018–0032’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website 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.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically:
Go to www.regulations.gov. Enter
‘‘Docket ID OCC–2018–0032’’ in the
Search box and click ‘‘Search.’’ Click on
‘‘Open Docket Folder’’ on the right side
of the screen. Comments and supporting
materials can be viewed and filtered by
clicking on ‘‘View all documents and
comments in this docket’’ and then
using the filtering tools on the left side
of the screen.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
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The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
• Viewing Comments Personally: You
may personally inspect comments at the
OCC, 400 7th Street SW, Washington,
DC 20219. 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: When submitting comments,
please consider submitting your
comments by email or fax because paper
mail in the Washington, DC area and at
the Board may be subject to delay.
You may submit comments, identified
by Docket No. R–1618 and RIN 7100–
AF12, by any of the following methods:
• Agency Website: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Email: regs.comments@
federalreserve.gov. Include docket and
RIN numbers 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 will be made
available on the Board’s website at
https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons or to remove personally
identifiable information at the
commenter’s request. Accordingly,
comments will not be edited to remove
any identifying or contact information.
Public comments may also be viewed
electronically or in paper in Room 3515,
1801 K Street NW (between 18th and
19th Streets NW), between 9:00 a.m. and
5:00 p.m. on weekdays.
FDIC: You may submit comments,
identified by FDIC RIN 3064–AE82, by
any of the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal/.
Follow instructions for submitting
comments on the Agency website.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivery/Courier: Comments
may be hand-delivered to the guard
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Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules
station at the rear of the 550 17th Street
NW building (located on F Street) on
business days between 7:00 a.m. and
5:00 p.m.
• Email: comments@FDIC.gov.
Comments submitted must include
‘‘FDIC’’ and ‘‘RIN 3064–AE82’’ on the
subject line of the message.
• Public Inspection: All comments
received must include ‘‘FDIC’’ and ‘‘RIN
3064–AE82’’ for this rulemaking. 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
ordered from the FDIC Public
Information Center, 3501 North Fairfax
Drive, Room E–1002, Arlington, VA
22226, or by telephone at (877) 275–
3342 or (703) 562–2200.
FOR FURTHER INFORMATION CONTACT:
OCC: Cady Codding, Senior Policy
Accountant, Office of the Chief
Accountant, (202) 649–5764; Kevin
Korzeniewski, Counsel, Office of the
Chief Counsel, (202) 649–5490; or for
persons who are deaf or hearing
impaired, TTY, (202) 649–5597.
Board: Douglas Carpenter, Senior
Supervisory Financial Analyst, Division
of Supervision and Regulation, (202)
452–2205; Claudia Von Pervieux, Senior
Counsel, (202) 452–2552, or Laura Bain,
Senior Attorney, (202) 736–5546, Legal
Division, Board of Governors of the
Federal Reserve System, 20th and C
Streets NW, Washington, DC 20551. For
the hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (202) 263–4869, Board of
Governors of the Federal Reserve
System, 20th Street and Constitution
Avenue NW, Washington, DC 20551.
FDIC: Robert Storch, Chief
Accountant, Division of Risk
Management Supervision, (202) 898–
8906, rstorch@fdic.gov; or Nefretete
Smith, Counsel, Legal Division, (202)
898–6851, nefsmith@fdic.gov; or
Kathryn Marks, Counsel, Legal Division,
(202) 898–3896, kmarks@fdic.gov.
SUPPLEMENTARY INFORMATION:
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Table of Contents
I. Introduction
A. Summary of Proposed Rule
B. Background
II. Description of the Proposed Rule
III. Expected Impact of the Proposed Rule
IV. Alternatives Considered
V. Related Agency-Specific Revisions
VI. Regulatory Analyses
A. Paperwork Reduction Act
B. Regulatory Flexibility Act
C. Plain Language
D. Riegle Community Development and
Regulatory Improvement Act of 1994
E. OCC Unfunded Mandates Reform Act of
1995
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Appendix A: Proposed Changes in Frequency
of Collection for the FFIEC 051
Appendix B: Data Items To Be Collected
From Institutions With Total Assets
Greater Than $1 Billion on the FFIEC
051
I. Introduction
A. Summary of Proposed Rule
The Office of the Comptroller of the
Currency (OCC), the Board of Governors
of the Federal Reserve System (Board),
and the Federal Deposit Insurance
Corporation (FDIC) (collectively, the
agencies) are inviting comment on this
notice of proposed rulemaking
(proposed rule) that would implement
reduced reporting on the Consolidated
Reports of Condition and Income (Call
Report) 1 for eligible small insured
depository institutions, consistent with
section 205 of the Economic Growth,
Regulatory Relief, and Consumer
Protection Act of 2018 (EGRRCPA).2
The OCC and Board also are proposing
to implement reduced reporting for
eligible uninsured institutions. The
proposed rule would expand the
number of institutions that may file the
FFIEC 051 Call Report, the most
streamlined version of the Call Report,
and would provide for reduced
reporting in the FFIEC 051 Call Report.
Through the included Paperwork
Reduction Act (PRA) notice, the
agencies are proposing to reduce the
amount of data required to be reported
on the FFIEC 051 Call Report for the
first and third calendar quarters.
The proposed reduced reporting
would be available to smaller, noncomplex institutions, with domestic
offices only, that meet the definition of
‘‘covered depository institution.’’ That
term generally is defined in the
proposed rule to mean an institution
that has less than $5 billion in total
consolidated assets, has no foreign
offices, is not required to or has not
elected to use Subpart E (Internal
Ratings-Based and Advanced
Measurement Approaches) of the
agencies’ regulatory capital rules to
calculate its risk-based capital
requirements, and is not a large or
highly complex institution for purposes
of the FDIC’s assessment regulations.
1 The ‘‘Call Report’’ is the report of condition and
income for most insured depository institutions.
There currently are three versions of the Call
Reports: The Consolidated Reports of Condition and
Income for a Bank with Domestic and Foreign
Offices (FFIEC 031), the Consolidated Report 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).
2 Public Law 115–174, 132 Stat. 1296 (2018).
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The proposed rule would provide for
reduced reporting by allowing covered
depository institutions to file the FFIEC
051 Call Report, with fewer data items
required in the reports for the first and
third calendar quarters. For covered
depository institutions, the principal
areas of reduced reporting in the first
and third calendar quarters generally
would include data items related to
categories of risk-weighting of various
types of assets and other exposures
under the agencies’ regulatory capital
rules, fiduciary and related services
assets and income, and troubled debt
restructurings by loan category. In
addition, covered depository
institutions that previously were
ineligible to file the FFIEC 051 Call
Report (i.e., those with total assets of $1
billion or more) would benefit from the
FFIEC 051 Call Report’s less detailed
quarterly reporting as compared to other
versions of the Call Report.3
B. Background
In their statutory roles of chartering,
licensing, supervising, or insuring
institutions,4 the agencies principally
rely on information obtained through
on-site examinations of institutions, offsite supervisory activities between
examinations, and information reported
on an institution’s report of condition.
The report of condition is the Call
Report for most insured depository
institutions.5 Call Reports provide the
most current financial and statistical
data available for identifying areas of
focus for supervision and for on-site and
off-site examinations. The agencies use
Call Report data in monitoring the
condition, performance, and risk profile
of individual institutions and the
industry as a whole. Call Report data
assist the agencies in their collective
missions of promoting the safety and
soundness of institutions and the
financial system and the protection of
consumer financial rights, as well as
fulfilling agency-specific missions, such
as conducting monetary policy,
promoting financial stability, and
3 As compared with other versions of the Call
Report, the FFIEC 051 Call Report requires less
detailed reporting for data items related to trading,
mortgage banking, and securitization activities, as
well as less detail for other lending and derivatives
activities.
4 The OCC charters and supervises national banks
and Federal savings associations, and licenses and
supervises Federal branches and agencies of foreign
banks; the Board supervises state member banks;
the FDIC supervises state nonmember banks, state
savings associations and state-licensed insured
branches, and insures the deposits of all insured
depository institutions.
5 In addition, U.S. branches and agencies of
foreign banks file the Report of Assets and
Liabilities of U.S. Branches and Agencies of Foreign
Banks (FFIEC 002).
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administering federal deposit insurance.
The agencies also use Call Report data
in evaluating institutions’ applications,
including interstate merger and
acquisition applications. In addition,
Call Report data are used by the
appropriate agencies to calculate
institutions’ deposit insurance
assessments as well as national banks’
and federal savings associations’
semiannual assessment fees.
The agencies recognize that
institutions devote staffing and
resources in order to complete and file
Call Reports. In December 2014, the
Federal Financial Institutions
Examination Council (FFIEC), which is
responsible for developing uniform
reporting systems (including the Call
Reports) for federally supervised
financial institutions,6 started an
initiative to reduce the reporting burden
on small institutions. The FFIEC
members developed the following
guiding principles to evaluate potential
additions and deletions of Call Report
data items and other revisions to the
Call Reports: (1) Data items serve a longterm regulatory or public policy purpose
by assisting the FFIEC members in
fulfilling their missions; (2) data items
to be collected maximize practical
utility and minimize, to the extent
practicable and appropriate, burden on
financial institutions; and (3) equivalent
data items are not readily available
through other means.
As part of the FFIEC’s Call Report
burden-reduction initiative, FFIEC
members conducted outreach with
community banks and industry
representatives to better understand
what aspects of the Call Report process
are significant sources of reporting
burden for financial institutions;
accelerated the statutorily mandated
review of the Call Report; 7 and
evaluated the feasibility and merits of
creating a more streamlined Call Report
for eligible small institutions.8 Based on
6 See 12 U.S.C. 3305(c). The agencies are
members of the FFIEC. The term ‘‘financial
institution’’ in this context means a commercial
bank, savings bank, trust company, savings
association, building and loan association,
homestead association, cooperative bank, or credit
union. 12 U.S.C. 3302(3).
7 See 12 U.S.C. 1817(a)(11). The agencies are
statutorily mandated to conduct a review of the
information and schedules in the Call Reports every
five years, and reduce or eliminate any information
or schedules for which the agencies determine
continued collection is not required by law and no
longer necessary or appropriate. https://
www.ffiec.gov/pdf/2017_Interagency_Review_
Consolidated_Reports_Condition_Income.pdf.
8 The FFIEC published a series of Federal
Register notices pursuant to the Paperwork
Reduction Act of 1995. See 80 FR 56539 (September
18, 2015) (principles); 81 FR 45357 (July 13, 2016)
(burden reduction); 82 FR 2444 (January 9, 2017)
(burden reduction and implementation of FFIEC
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the response from community banks,
trade associations, and public
comments, as well as survey results of
FFIEC member Call Report data users, in
August 2016, the agencies invited
public comment on a proposed
streamlined version of the Call Report,
the FFIEC 051 Call Report.9
The FFIEC 051 Call Report first took
effect as of March 31, 2017, and
contained approximately 40 percent
fewer data items than were included in
the FFIEC 041 Call Report, which is the
Call Report filed by institutions that
have $1 billion or more in total assets,
only have domestic offices, and are not
branches of foreign banks. In addition,
the initial FFIEC 051 Call Report
collected approximately 4 percent of
data items less frequently than the
FFIEC 041 Call Report in effect at that
time.
In June and November 2017, the
agencies proposed further reductions to
the FFIEC 051 Call Report based on
public comments and additional
feedback from Call Report data users
from the FFIEC members.10 The
agencies also reviewed suggestions for
streamlining the Call Reports provided
in comment letters submitted during the
public notice and comment period for
the agencies’ review of regulations
required by the Economic Growth and
Regulatory Paperwork Reduction Act.11
As a result of the further reductions that
took effect as of the June 30, 2018,
report date, the FFIEC 051 Call Report
represents a reduction of approximately
43 percent of the data items and
provides for reduced reporting
frequency of approximately 6 percent of
the data items, as compared to the
FFIEC 041 Call Report in use
immediately before the implementation
of the FFIEC 051 Call Report. Currently,
only institutions that have less than $1
billion in total assets, have only
domestic offices, are not branches of
foreign banks, and are not required or
have not elected to use Subpart E of the
agencies’ regulatory capital rules
(applicable to advanced approaches
institutions) to calculate their risk-based
capital requirements 12 may use the
FFIEC 051 Call Report.
051); 83 FR 939 (January 8, 2018) (burden
reduction); 83 FR 15678 (April 11, 2018) (burden
reduction).
9 81 FR 54190 (August 15, 2016).
10 See 82 FR 29147 (June 27, 2017), 82 FR 51908
(November 8, 2017). These Federal Register notices
also contained proposals to reduce data items in the
FFIEC 031 and FFIEC 041 Call Reports.
11 See 12 U.S.C. 3311.
12 See 12 CFR part 3, subpart E (OCC); 12 CFR
part 217, subpart E (Board); 12 CFR part 324,
subpart E (FDIC). Generally, an institution is an
advanced approaches institution if it has
consolidated assets of at least $250 billion or if it
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II. Description of the Proposed Rule
Section 205 of EGRRCPA amended
section 7(a) of the Federal Deposit
Insurance Act (FDI Act) and requires the
agencies to issue regulations that allow
for a reduced reporting requirement for
a covered depository institution when
the institution makes the first and third
report of condition for a calendar year.
Section 205 of EGRRCPA defines
‘‘covered depository institution’’ as an
insured depository institution ‘‘that— (i)
has less than $5 billion in total
consolidated assets; and (ii) satisfies
such other criteria as the [agencies]
determine appropriate.’’ 13
The proposed rule would implement
section 205 of EGRRCPA by expanding
the number of insured depository
institutions eligible to file the FFIEC 051
Call Report and establishing the reduced
reporting in the FFIEC 051 Call Report
permissible for such institutions for the
first and third reports of condition for a
year.14 The OCC and Board also are
proposing to establish reduced reporting
for certain uninsured institutions under
their supervision that meet the proposed
criteria.
As discussed below, the agencies
propose to implement reduced reporting
by expanding the scope of institutions
permitted to file the FFIEC 051 Call
Report every quarter through the
definition of ‘‘covered depository
institution.’’ As noted, the FFIEC 051
Call Report is the most streamlined
version of the Call Report and is familiar
to institutions and their Call Report
service providers and, therefore could
be readily used by covered depository
institutions for reduced reporting in the
first and third calendar quarters.15 In
particular, because the FFIEC 051 Call
has consolidated on-balance sheet foreign
exposures of at least $10 billion, or if it is a
subsidiary of a depository institution, bank holding
company, savings and loan holding company, or
intermediate holding company that is an advanced
approaches banking organization.
13 12 U.S.C. 1817(a)(12)(B).
14 Under the proposed rule, ‘‘report of condition’’
means the FFIEC 031, FFIEC 041, or FFIEC 051
versions of the Consolidated Reports of Condition
and Income (Call Report) or the FFIEC 002 report
(Report of Assets and Liabilities of U.S. Branches
and Agencies of Foreign Banks), as applicable, and
as they may be amended or superseded from time
to time in accordance with the Paperwork
Reduction Act of 1995, 44 U.S.C. chapter 35.
15 Based on June 30, 2018, Call Report data, of the
5,357 institutions with reported total assets below
the statutory $5 billion asset threshold, 4,810 or
almost 90 percent of those institutions reported less
than $1 billion in total assets and are currently
eligible to file the FFIEC 051 Call Report based on
asset size. Approximately 77 percent of the 4,810
institutions with total assets below $1 billion
already file the FFIEC 051 Call Report, and thus
would face little to no administrative costs to obtain
reduced reporting for the first and third calendar
quarters of a year.
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Report uses the same definitions for
data items as other Call Report versions,
as well as the same data item identifiers
used by the Call Report preparation
software products, the agencies
anticipate that newly eligible covered
depository institutions would be able to
file the FFIEC 051 Call Report without
the need to make significant changes to
their Call Report preparation processes
or incur significant cost.16 Finally, as
discussed below in the PRA section, to
implement section 205 of EGRRCPA the
agencies are proposing to reduce the
number of existing FFIEC 051 Call
Report data items required to be
reported in the first and third calendar
quarters by approximately 37 percent.
Accordingly, for all covered depository
institutions, filing the FFIEC 051 Call
Report would provide an immediate
reduction in required reporting without
substantial administrative costs.
The agencies expect to propose
additional reductions to the FFIEC 051
Call Report in connection with the
implementation of section 201 of
EGRRCPA. Section 201 of EGRRCPA
requires the agencies to adopt a
community bank leverage ratio in place
of the existing regulatory capital rules
for qualifying community banks,17
which the agencies expect would lead to
a reduction in the number of regulatory
capital data items that would need to be
reported by such institutions. The
agencies also will continue to review
the data collected on the FFIEC 051 Call
Report and seek to reduce the reporting
frequency of data items from quarterly
to semi-annual where practicable.
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A. Covered Depository Institution
Section 205 of EGRRCPA defines
‘‘covered depository institution’’ as an
insured depository institution ‘‘that— (i)
has less than $5 billion in total
consolidated assets; and (ii) satisfies
such other criteria as the [agencies]
determine appropriate.’’ 18 The
proposed rule would define ‘‘covered
depository institution’’ as an institution
that meets all the following criteria: Has
less than $5 billion in total consolidated
assets as reported in its report of
condition for the second calendar
quarter of the preceding calendar year;
16 Based on June 30, 2018 Call Report data, 547
institutions that reported total assets of $1 billion
or more, but less than $5 billion, could be eligible
to file the FFIEC 051 Call Report in 2019 under the
proposed rule.
17 A qualifying community bank is defined as a
depository institution or depository holding
company with total consolidated assets of less than
$10 billion and a risk profile deemed appropriate
by the agencies. Under section 201, the agencies
may determine whether a community bank qualifies
based on consideration of certain risk factors.
18 12 U.S.C. 1817(a)(12)(B).
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has no foreign offices; is not required to
or has not elected to use Subpart E of
the agencies’ regulatory capital rules to
calculate its risk-based capital
requirements; and is not a large or
highly complex institution for purposes
of the FDIC’s assessment regulations.
The OCC’s definition would also scope
out institutions that file the FFIEC 002
report of condition. In addition, the
FDIC’s definition would exclude statelicensed insured branches of foreign
banks. These other non-asset-size
criteria are identical to the current
eligibility criteria for institutions with
less than $1 billion in total assets to file
the FFIEC 051 Call Report except for the
criterion related to whether the
institution is large or highly complex
under the FDIC’s assessment
regulations.
The agencies would allow reduced
reporting for ‘‘insured depository
institutions’’, as such term is defined in
section 3 of the FDI Act, 12 U.S.C. 1813,
and as required by section 205 of
EGRRCPA. The OCC and Board also
would extend reduced reporting to
certain uninsured institutions that they
supervise and that would otherwise
meet the same criteria.19 Greater parity
in the reporting of insured and
uninsured national banks and state
member banks would be appropriate in
light of the similarities between the
information used to review the activities
of such insured and uninsured
institutions. In addition, some
uninsured institutions with total assets
of less than $1 billion currently file the
FFIEC 051 Call Report and, therefore,
may continue to use this version of the
Call Report under the proposed rule.
Asset Threshold
The proposed rule would define
‘‘total consolidated assets’’ as total
assets as reported in an institution’s
report of condition. An institution
would determine whether it meets the
asset-size criterion and is eligible to file
the FFIEC 051 Call Report based on the
total assets it reported in its report of
condition (Schedule RC, Item 12 in the
Call Reports), which is calculated on a
consolidated basis, in the institution’s
report of condition for the second
calendar quarter of the previous
19 The FDIC only supervises insured state
nonmember banks, insured state savings
associations, and insured state-licensed branches.
Currently, no uninsured Board-regulated institution
is eligible to file the FFIEC 051 Call Report, but
under the proposal one uninsured Board-regulated
institution would meet the proposed criteria for
eligibility to file the FFIEC 051 Call Report. The
OCC supervises 49 uninsured institutions that
currently are eligible to file the FFIEC 051 Call
Report, which would increase to 50 under the
proposed rule.
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calendar year. This approach is
consistent with the current FFIEC 051
Call Report instructions for determining
eligibility to file the FFIEC 051 Call
Report based on asset size.20
This approach should allow an
institution sufficient time to address any
accounting or reporting systems changes
or other preparation process changes
that may be needed if the institution
wants to take advantage of, or is no
longer eligible for, filing the FFIEC 051
Call Report with its reduced reporting in
the following calendar year. For
example, an institution that meets the
asset-size criterion based on its report of
condition as of June 30, 2018, may be
eligible to file the FFIEC 051 Call Report
for the entire 2019 calendar year, even
if its assets increase to $5 billion or
more later in 2018 or 2019, provided it
also continues to meet the non-assetsize criteria discussed below. If the
same institution reports $5 billion or
more in total assets on its Call Report as
of June 30, 2019, the institution could
continue to file the FFIEC 051 Call
Report for report dates through
December 31, 2019 (based on its total
assets as of June 30, 2018), including
reduced reporting in the third calendar
quarter of 2019 as long as it continued
to meet the non-asset-size criteria.
However, because the institution
exceeded the asset-size criterion as of
June 30, 2019, the institution would be
ineligible to file the FFIEC 051 Call
Report in the 2020 calendar year.
Question 1: What are the advantages
and disadvantages of institutions
measuring total assets using the
approach discussed above? Should the
agencies use average total assets over a
specified period rather than total assets
on a single reporting date? Is another
methodology more appropriate to
measure total assets for purposes of the
asset-size criterion? If so, what
methodology is more appropriate and
why?
Question 2: The agencies are not
proposing to immediately disqualify an
institution from using reduced reporting
if it exceeds $5 billion in total assets,
regardless of how the institution crossed
the asset threshold, including through a
merger or acquisition. Is this
appropriate and why?
Other Eligibility Criteria
The agencies are also proposing that
an institution satisfy other criteria to be
eligible for reduced reporting, consistent
with section 205. These other criteria
are based on an institution’s
20 See FFIEC 051 instructions, available at https://
www.ffiec.gov/pdf/FFIEC_forms/
FFIEC051_201806_i.pdf.
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international activities, its treatment
under the agencies’ regulatory capital
rules, and its treatment under the FDIC’s
deposit insurance assessment
regulations. These non-asset-size criteria
are identical to the current eligibility
criteria for institutions with less than $1
billion in total assets to file the FFIEC
051 Call Report with the exception of
the criterion related to treatment under
the FDIC’s assessment regulations.
Unlike the asset-size criterion, which is
determined as of the report of condition
filed for the second calendar quarter (as
of June 30) of the prior calendar year, an
institution would determine in each
calendar quarter whether it meets all of
these non-asset-size criteria. If in any
calendar quarter an institution no longer
meets all of these other criteria, then the
institution would become ineligible to
file the FFIEC 051 Call Report beginning
the quarter in which the institution
failed to meet one of the non-asset-size
criteria. In contrast to failing the assetsize criterion, failing to meet the nonasset-size criteria often reflects a
significant change in the operations of
an institution as a result of deliberate
planning, such as opening a foreign
branch or becoming subject to a
different approach under the agencies’
regulatory capital rules. Therefore, in
contrast to the asset-size criterion, the
proposed rule does not include a grace
period for non-asset-size criteria.
International Activities. The proposal
would exclude from the definition of
‘‘covered depository institution’’ an
institution that has foreign offices or
that is an insured branch of a foreign
bank. These criteria are identical to the
current eligibility criteria that exclude
these institutions from being eligible to
file the FFIEC 051 Call Report. Foreign
offices would be defined as: Branches or
consolidated subsidiaries in foreign
countries 21 unless located on a U.S.
military facility; international banking
facilities as defined under 12 CFR 204.8;
majority-owned Edge Act and
Agreement 22 subsidiaries; and branches
or consolidated subsidiaries in U.S.
territories if the bank is chartered or
headquartered in a U.S. state or the
District of Columbia. Insured branches
of foreign banks would be those
branches defined in section 3(s) of the
FDI Act, 12 U.S.C. 1813(s), which file
the FFIEC 002 version of the report of
condition. The agencies believe it is
appropriate to exclude these institutions
21 The proposed rule would define ‘‘foreign
country’’ to refer to one or more foreign nations,
and include the overseas territories, dependencies,
and insular possessions of those nations and of the
United States. This definition also is used in the
Board’s Regulation K, 12 CFR part 211.
22 12 CFR 211.1(c)(2) and (3).
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from the proposal because the nature of
these international activities requires
more comprehensive and detailed
financial information to effectively
supervise and monitor them.23 This
comprehensive information related to
foreign activities is required to be
reported in the FFIEC 002 report of
condition. For example, institutions that
have foreign offices may present risks,
such as currency risk and countryspecific risks, for which supervisors
require additional financial information
to ensure appropriate monitoring and
supervision. Permitting these
institutions to receive reduced reporting
on the FFIEC 051 Call Report would
impair the agencies’ existing
supervision of these institutions.
Advanced Approaches Institutions.
The proposal would exclude from the
definition of ‘‘covered depository
institution’’ an institution that is
required to, or has elected to, use
Subpart E of the agencies’ regulatory
capital rules to calculate its risk-based
capital requirements (advanced
approaches institution). In general, an
advanced approaches institution is an
institution that has consolidated total
assets equal to $250 billion or more, has
consolidated total on-balance sheet
foreign exposure equal to $10 billion or
more, or is a subsidiary of a depository
institution or holding company that
uses the advanced approaches to
calculate its total-risk weighted assets.24
Advanced approaches institutions
currently are precluded from filing the
FFIEC 051 Call Report. Advanced
approaches institutions generally must
calculate their regulatory capital
requirements under the advanced
approaches, which relies in part on
internal models and complex formulas,
and are subject to additional
requirements such as the supplementary
leverage ratio.25 While advanced
approaches holding companies typically
have total assets of more than $250
billion, their depository institution
subsidiaries also generally are subject to
the advanced approaches, some of
which may have total assets of less than
$5 billion. Some of these subsidiaries
often engage in specialized or highly
complex activities that require more
comprehensive and detailed financial
23 Depository institutions with foreign offices are
currently required to file the FFIEC 031 Call Report
and thus are not currently eligible to file the FFIEC
051. Branches of foreign banks (both Federally and
State-licensed), are required to file the FFIEC 002
version of the report of condition.
24 See 12 CFR 3.100(b) (OCC); 217.100(b) (Board);
324.100(b) (FDIC).
25 See 12 CFR part 3, subpart E and 12 CFR
3.10(c)(4) (OCC); 12 CFR part 217, subpart E and 12
CFR 217.10(c)(4) (Board); 12 CFR part 324, subpart
E and 12 CFR 324.10(c)(4) (FDIC).
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information to ensure effective
supervision and monitoring.
Institutions Assessed as Large or
Highly Complex by the FDIC. Finally,
the agencies propose to exclude from
the definition of ‘‘covered depository
institution’’ an insured depository
institution that is assessed as a ‘‘large
institution’’ or ‘‘highly complex
institution,’’ as defined in the FDIC’s
deposit insurance assessment
regulations.26
Under the FDIC’s assessment
regulations, large and highly complex
institutions are assessed using
combined CAMELS 27 ratings and
certain forward-looking financial
measures to assess the risks such
institutions pose to the Deposit
Insurance Fund.28 The FDIC uses the
data reported by a large or highly
complex institution on either the FFIEC
031 or FFIEC 041 Call Report, as
appropriate, to calculate the
institution’s assessment rate. For
example, the FDIC uses data on
Schedule RC–O regarding higher-risk
assets, which are not reported on the
FFIEC 051 Call Report, to calculate
financial ratios used to determine a
large or highly complex institution’s
assessment rate.
Under the FDIC’s assessments
regulations, an institution that increases
or decreases in asset size is reclassified
as a small institution, large institution,
or highly complex institution generally
after such institution reports assets of
less than $10 billion, $10 billion or
more, or more than $50 billion,
26 See 12 CFR 327.8(e), (f), (g) and (s). For the
purposes of the FDIC’s assessment regulations, a
‘‘small institution’’ generally is an insured
depository institution with less than $10 billion in
total assets. Generally, a ‘‘large institution’’ is an
insured depository institution with more than $10
billion in total assets or that is treated as a large
institution for assessment purposes under section
327.16(f). Generally, a ‘‘highly complex institution’’
is: (i) An insured depository institution (excluding
a credit card bank) that has had $50 billion or more
in total assets for at least four consecutive quarters,
is controlled by a U.S. parent holding company that
has had $500 billion or more in total assets for four
consecutive quarters, or is controlled by one or
more intermediate U.S. parent holding companies
that are controlled by a U.S. holding company that
has had $500 billion or more in assets for four
consecutive quarters; or (ii) a processing bank or
trust company. However, an institution with assets
between $5 billion and $10 billion may request
treatment for deposit insurance assessments as a
large institution, and few institutions have made
this request to date. See 12 CFR 327.16(f).
27 A financial institution is assigned a ‘‘CAMELS’’
composite rating based on an evaluation and rating
of six essential components of an institution’s
financial condition and operations. These
component factors address the: Adequacy of capital
(C); quality of assets (A); capability of management
(M); quality and level of earnings (E); adequacy of
liquidity (L); and sensitivity to market risk (S).
28 See 12 CFR 327.16(b) and (c); 76 FR 10672,
10688–10698 (February 25, 2011).
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respectively, for four consecutive
quarters.29 Because reclassification
requires that the institution report above
or below a certain asset-based threshold
for four consecutive quarters, there may
be a period of time in which an
institution would otherwise be eligible
for reduced reporting by filing the
FFIEC 051 Call Report because it met
the asset-size criterion, but is assessed
as a large or highly complex institution.
Although this situation is likely to be
rare, without this criterion such
institution would be eligible to file the
FFIEC 051 Call Report with its reduced
reporting under the proposed rule. For
example, an institution that had been
reporting more than $10 billion in assets
and was assessed as a ‘‘large institution’’
as of March 31, 2018, could decrease in
size such that its total assets, as of June
30, 2018, were below $5 billion. If that
institution met the other non-asset-size
criteria discussed above, then that
institution could be eligible to file the
FFIEC 051 Call Report in the 2019
calendar year, including reduced
reporting in the first and third calendar
quarters of 2019. However, such an
institution would continue to be
assessed as a large institution and
would not be reclassified as a ‘‘small
institution’’ for deposit insurance
assessments until it reported total assets
below $10 billion for four consecutive
quarters. Therefore, as long as the
institution continues to be assessed as a
‘‘large institution,’’ it would be
ineligible to file the FFIEC 051 Call
Report, including its reduced reporting,
until it was reclassified for deposit
insurance assessments and assessed as a
‘‘small institution’’ (i.e., beginning with
the third calendar quarter in 2019).
This proposed eligibility criterion
ensures that an institution that meets
the asset-size criterion based on its
report of condition for the second
calendar quarter of a previous year, but
is treated as a large or highly complex
institution for assessment purposes, will
continue to file the FFIEC 031 or FFIEC
041 Call Report, as appropriate, which
contain the data items required by the
FDIC to calculate the institution’s
assessment rate.
Question 3: Do the other criteria
proposed by the agencies set an
appropriate scope for institutions
eligible for reduced reporting? Are there
additional institutions or classes of
29 Under the FDIC’s assessment regulations, an
insured depository institution can be reclassified as
a highly complex institution because they meet the
definition of a ‘‘processing bank or trust company.’’
Under that definition, an insured depository
institution would need to, among other things, have
total assets of $10 billion or more for at least four
consecutive quarters. See 12 CFR 327.8(s).
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institutions meeting the asset-size
criterion that the agencies should
consider making eligible to use reduced
reporting and, if so, why? Are there
additional institutions or classes of
institutions that the agencies should
consider making ineligible for reduced
reporting and, if so, why?
B. Reduced Reporting
The agencies propose to implement
the reduced reporting required by
section 205 of EGRRCPA by first
allowing the broader group of covered
depository institutions to file the FFIEC
051 Call Report each calendar quarter.
The proposed rule would extend
eligibility to file the FFIEC 051 Call
Report to all covered depository
institutions with $1 billion or more, but
less than $5 billion, in total assets and
that meet the non-asset-size criteria. As
discussed in the PRA section below, the
agencies propose revising the eligibility
criteria for filing the FFIEC 051 Call
Report to match the criteria to qualify as
a covered depository institution under
the proposal. As a result, this approach
would provide significant relief through
reduced reporting to covered depository
institutions that currently are required
to file the FFIEC 041 Call Report. For
example, the current version of the
FFIEC 051 Call Report includes 1,147
reportable data items in each of the first
and third calendar quarters, compared
with 2,029 reportable data items
required on the FFIEC 041 Call Report
in those calendar quarters, which is the
version of the Call Report currently
completed by most institutions with
total assets of $1 billion or more, but
less than $5 billion. Under the proposal,
covered depository institutions with
total assets between $1 billion and less
than $5 billion would be eligible to file
the FFIEC 051 Call Report in each
calendar quarter of a calendar year
(provided that they continue to meet the
non-asset-size eligibility criteria), which
would provide substantial reporting
relief for these institutions compared to
the FFIEC 041 Call Report currently
used by most of those institutions.
In addition to expanding the number
of institutions eligible to file the FFIEC
051 Call Report, the agencies propose to
implement the reduced reporting
required by section 205 of EGRRCPA by
further reducing the reporting required
on the FFIEC 051 Call Report for all
covered depository institutions in the
first and third calendar quarters. The
agencies propose to achieve this by
reducing the frequency of reporting in
the FFIEC 051 Call Report for
approximately 37 percent of the existing
data items in this report—from quarterly
to semiannual—as described in the PRA
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58437
section below. The principal areas of
reduced reporting in the first and third
quarters include data items related to
categories of risk-weighting of various
types of assets and other exposures
under the agencies’ regulatory capital
rules, fiduciary and related services
assets and income, and troubled debt
restructurings by loan category. This
reduction in frequency for certain data
items would provide all covered
depository institutions, including those
with less than $1 billion in total assets
that currently file the FFIEC 051 Call
Report, with further reduced reporting
in the first and third calendar quarters.
Question 4: Is the agencies’ proposal
to implement reduced reporting by
expanding eligibility to file the FFIEC
051 Call Report appropriate? If not,
what would be a more appropriate way
to implement Section 205’s reduced
reporting requirement, and why?
C. Reservation of Authority
The proposed rule includes a
reservation of authority that would
allow the appropriate Federal banking
agency, in consultation with the
applicable state chartering authority,
and on an institution-specific basis, to
require a covered depository institution
to file the FFIEC 041 Call Report, or any
successor thereto, in any calendar
quarter or quarters in which the covered
depository institution would otherwise
be eligible to file the FFIEC 051 Call
Report, based on the appropriate
Federal banking agency’s determination
that such filing is necessary for
supervisory purposes. In making such a
determination, the appropriate Federal
banking agency may consider criteria
including whether the institution is
significantly engaged in one or more
complex, specialized, or other higherrisk activities, such as those for which
limited information is reported in the
FFIEC 051 Call Report compared to the
FFIEC 041 Call Report. For example, if
a covered depository institution has a
considerable concentration of either
trading assets or mortgage banking
activities, the appropriate Federal
banking agency may seek additional
information from that institution by
requiring the institution to file the
FFIEC 041 Call Report. Generally, a
covered depository institution’s safety
and soundness, size, complexity,
activities, risk profile, and other factors,
such as an increase in a covered
depository institution’s asset size
resulting from a merger or acquisition,
also may be taken into consideration.
If, after considering such factors, the
appropriate Federal banking agency
determines that the covered depository
institution should be required to file the
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FFIEC 041 Call Report, the appropriate
Federal banking agency would provide
written notice to the covered depository
institution prior to the filing
requirement’s becoming effective. Any
covered depository institution eligible
to file the FFIEC 051 Call Report, but
that is required by its appropriate
Federal banking agency to file the FFIEC
041 Call Report under the reservation of
authority, would be required to
continue to file the FFIEC 041 Call
Report until the appropriate Federal
banking agency provides written notice
to the covered depository institution
that it is no longer required to file the
FFIEC 041 Call Report. The justification
for use of the reservation and its terms
will also be provided in the notice.
This authority would provide the
agencies with the flexibility to require
an institution to report and disclose
additional Call Report data if warranted
by an institution’s individual
circumstances and risk profile.
Consistent with current supervisory
practices and experience, the exercise of
the reservation of authority generally
would be a decision made by a member
of the appropriate agency’s senior
management and would not be at the
discretion of examination staff.
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III. Expected Impact of the Proposed
Rule
The proposed rule is expected to
broaden the number of institutions that
may file the FFIEC 051 Call Report and
be eligible for reduced reporting in the
first and third calendar quarters.30
Based on June 30, 2018, Call Report
data, 5,357 institutions reported total
assets of less than $5 billion. Of these,
547 institutions reported total assets of
$1 billion or more, but less than $5
billion, and are currently ineligible to
file the FFIEC 051 Call Report in 2019,
but would meet the definition of
‘‘covered depository institution’’ under
the proposed rule. For 533 of these 547
institutions, this would mark the first
time such institution is eligible to file
the FFIEC 051 Call Report.31 Overall,
30 The proposed rule allows reduced reporting for
covered depository institutions, but does not
mandate that any institution file the FFIEC 051 Call
Report. Based on June 30, 2018, Call Report data,
approximately 77 percent of currently eligible
institutions that reported total assets of less than $1
billion elected to file the FFIEC 051 Call Report.
31 Fourteen institutions currently file the FFIEC
051 Call Report, but reported assets of $1 billion or
more, but less than $5 billion on their Call Report
as of June 30, 2018. Under the current Call Report
instructions, these institutions would not be eligible
to file the FFIEC 051 Call Report in 2019. However,
under the proposed rule, these institutions would
meet the definition of ‘‘covered depository
institution’’ and, therefore, could continue to file
the FFIEC 051 Call Report in 2019 (assuming they
continue to meet the non-asset-size criteria).
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each of the 5,357 institutions that
reported less than $5 billion in total
assets in their Call Report as of June 30,
2018, and that would qualify as a
‘‘covered depository institution’’ under
the proposed rule, could file the FFIEC
051 Call Report and report
approximately 37 percent fewer data
items in the first and third calendar
quarters than in the current FFIEC 051
Call Report.
The agencies estimate the average
quarterly reporting burden hours per
institution for the current FFIEC 041
and FFIEC 051 Call Reports are 64.49
hours and 52.31 hours, respectively, for
institutions that would become eligible
to file the FFIEC 051 Call Report in
2019. Thus, each covered depository
institution that switches from filing the
current FFIEC 041 Call Report to the
FFIEC 051 Call Report (amended as
proposed in the PRA section) is
expected to save, on average, 12.18
hours per quarter. Assuming that newly
eligible covered depository institutions
would file the FFIEC 051 Call Report at
the same rate as currently eligible
institutions file the FFIEC 051 Call
Report (77 percent), the agencies
estimate a total reporting burden
reduction of 5,130 hours per quarter for
these institutions.32
The proposed rule also provides for
reduced reporting in the first and third
calendar quarters for covered depository
institutions. As discussed below in the
PRA section, the agencies are proposing
to remove approximately 37 percent of
data items from being reported in the
FFIEC 051 Call Report for covered
depository institutions in the first and
third calendar quarters. The principal
areas of reduced reporting in the first
and third calendar quarters include data
items related to categories of riskweighting of various types of assets and
other exposures under the agencies’
regulatory capital rules, fiduciary and
related service assets and income, and
troubled debt restructurings by loan
category. These data items are currently
collected every calendar quarter on the
FFIEC 051 Call Report. Every covered
depository institution that files the
FFIEC 051 Call Report would
experience a reduction in reporting for
the first and third calendar quarters as
a result of this aspect of the proposed
rule. The agencies estimate that the
32 Calculated as 12.18 burden hours multiplied by
77 percent of 547 institutions that would be eligible
under the proposed rule. Covered depository
institutions could file the FFIEC 051 Call Report at
a higher rate than the current 77 percent
participation level, particularly due to the
opportunity under the proposed rule to obtain
additional reporting relief in the first and third
calendar quarters.
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proposed removal of approximately 37
percent of data items from the reporting
requirements of covered depository
institutions in the first and third
calendar quarters would reduce the
average quarterly reporting burden by
1.18 hours for the 3,714 institutions that
filed the FFIEC 051 Call Report for the
June 30, 2018, report date. This
represents a total estimated burden
reduction of 4,383 hours per quarter for
these institutions.33
As also discussed below in the PRA
section, the agencies are proposing to
add certain data items to the FFIEC 051
Call Report for covered depository
institutions with $1 billion or more, but
less than $5 billion, in total assets.
Based on Call Report data as of June 30,
2018, 533 institutions with $1 billion or
more, but less than $5 billion, currently
file the FFIEC 041 Call Report, but
would meet the definition of ‘‘covered
depository institution’’ under the
proposed rule. Because these 533
institutions already report these data
items on the FFIEC 041 Call Report, the
proposed addition of these data items to
the FFIEC 051 Call Report for these
institutions would not represent an
increase in reporting burden as these
institutions would experience an overall
net decrease in reporting burden by
switching to the FFIEC 051 Call Report.
Furthermore, only one of these items
would be collected quarterly; the other
items would be collected semiannually
or annually. In addition, these data
items would not be required to be
completed by institutions with less than
$1 billion in total assets that file the
FFIEC 041 or FFIEC 051 Call Reports, so
institutions that are currently eligible to
file the FFIEC 051 Call Report would
not be affected by the addition of these
items.
Based on the agencies’ total hourly
wage rate for Call Report preparation of
$117 and the reduction in reporting
hours resulting from the proposed
reduced reporting discussed in the PRA
section, it is estimated that reporting
costs could be $600,210 less each
quarter, on average, for the 547 eligible
institutions that reported $1 billion or
more, but less than $5 billion, in total
assets on their June 30, 2018, Call
Report.34 Also, the agencies estimate
that reporting costs could be $512,811
less each quarter, on average, for the
3,714 institutions that filed the FFIEC
051 Call Report for June 30, 2018.35 In
sum, the proposed changes to the FFIEC
051 Call Report that are discussed below
33 1.18 hours * 3,714 FFIEC 051 Call Report filers
for the report dated June 30, 2018.
34 $117 per hour * 5,130 hours per quarter.
35 $117 per hour * 4,383 hours per quarter.
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in the PRA section could reduce annual
reporting costs by an estimated
$4,452,084, or 0.008 percent of total
annualized non-interest expenses, for
institutions that reported total assets of
less than $5 billion on the Call Report
as of the June 30, 2018, and either filed
the FFIEC 051 Call Report, or filed the
FFIEC 041 Call Report but are expected
to file the FFIEC 051 Call Report, under
the proposed rule beginning in 2019.36
Finally, the proposed rule could
impose some minor additional
regulatory costs, in the first year of
implementation, that are associated
with changes to internal systems or
processes for affected institutions that
are not currently eligible for, or do not
currently file, the FFIEC 051 Call
Report. The agencies expect that these
additional costs should be relatively low
as the FFIEC 051 Call Report shares
defined terms and data item identifiers
with the other Call Reports, so
institutions that switch to the FFIEC 051
Call Report should not necessitate
significant reporting system changes.
However, these costs are also difficult to
estimate accurately with available
information because they depend upon
the individual characteristics of each
institution, its recordkeeping and
reporting systems, and the decisions of
its senior management.
Question 5: The agencies invite
comments on all aspects of the
information provided in this Expected
Impact section. In particular, would this
proposal have any significant effects on
institutions that the agencies have not
identified?
Question 6: Are there other factors or
aspects of regulatory reporting that the
agencies should consider in assessing
the impact of the proposed rule?
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IV. Alternatives Considered
The agencies recognize that while the
statutory mandate is to allow for
reduced reporting in the first and third
calendar quarters for covered depository
institutions, the implementation of
section 205 of EGRRCPA presents an
additional opportunity to provide
broader regulatory relief to smaller, less
complex institutions that are currently
required to file the FFIEC 041 Call
Report because they have $1 billion or
more in total assets. In developing the
proposal, the agencies sought to reduce
the reporting burden on institutions
with total consolidated assets of less
than $5 billion, consistent with the
mandate in section 205, while also
ensuring that the agencies’ data needs
36 $117 per hour * [5,130 hours per quarter +
4,383 hours per quarter] * 4 quarters per year.
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for institutions in the size range would
continue to be met.
The agencies considered two
alternative approaches to implementing
section 205 as part of the development
of the proposed rule. In considering
these alternatives, the agencies reviewed
prior PRA notices in which Call Report
changes were discussed and comments
were addressed. Additionally, the
agencies considered comments received
on the Call Report burden reduction
initiative announced in December 2014
that resulted in the creation of the
FFIEC 051 Call Report. The agencies
note that the FFIEC Call Report burdenreduction initiative involved significant
outreach to community banks and to
users of Call Report data and that the
guiding principles developed as part of
the initiative informed the development
of the approach taken in this proposal.
Alternative 1: Identify data items for
reduced reporting on the FFIEC 041 and
FFIEC 051 Call Reports. The agencies
considered reviewing the FFIEC 041 and
FFIEC 051 Call Reports to identify data
items that could be reported on a less
frequent basis by institutions with less
than $5 billion in total assets. A possible
advantage to this approach is that it
might have been easier to present the
various items proposed for reduced
reporting. However, the agencies also
recognized that the existing FFIEC 051
Call Report in its entirety already
requires the reporting of significantly
fewer data items than the FFIEC 041
Call Report. Therefore, expanding
institutions’ eligibility to file the FFIEC
051 Call Report was determined to be
the more beneficial approach with
respect to institutions with total assets
of $1 billion or more, but less than $5
billion, because it would provide those
institutions with immediate and
significant reductions in the overall
number of data items reported. In
addition, re-reviewing every data item
on the FFIEC 041 Call Report would
require significantly more time and
would delay the implementation of
reduced reporting in comparison to
proposing to use the existing FFIEC 051
Call Report.
Alternative 2: Create a new, separate
Call Report form for ‘‘covered
depository institutions.’’ The agencies
also considered creating a new, separate
Call Report for covered depository
institutions that would provide for
reduced reporting in the first and third
calendar quarters. The agencies believed
that, while such an approach may
appear simple to do, creating an entirely
separate form only two years after the
implementation of the new FFIEC 051
Call Report could lead to confusion
about which form to file, especially
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58439
because the criteria for filing the form
likely would have been very similar to
the current eligibility criteria for filing
the FFIEC 051 Call Report. Also, this
approach could result in institutions
having to reorganize their reporting
systems and processes to accommodate
their use of a new form and incur costs
and administrative burden in doing so.
Because the proposed rule is intended
to reduce burden on smaller, less
complex institutions, the agencies
determined that producing a new Call
Report would not be the most efficient
option. Additionally, the agencies
recognized that they would require
significant time to develop and publish
an entirely new Call Report form, which
would delay the regulatory reporting
relief proposed in the rule.
V. Related Agency-Specific Revisions
A. Board
The Board does not currently have a
rule that sets forth the report of
condition filing requirements of statechartered banks that are members of the
Federal Reserve System (state member
banks), and instead relies on its
statutory authority under section 9 of
the Federal Reserve Act (FRA) and
section 7(a)(3) of the FDI Act to require
state member banks to provide reports
of condition. In light of section 205 of
EGRRCPA’s requirement that the Board
issue a rule that allows for reduced
reporting by certain eligible Boardsupervised insured depository
institutions, the Board proposes to add
a new subpart to Regulation H, which
governs the membership of state
banking institutions in the Federal
Reserve System. The Board proposes to
add new subpart K to Regulation H,
which will incorporate the rule text
implementing section 205. In addition
to insured state member banks, the
Board also supervises uninsured state
member banks, such as nondepository
trust companies. The Board requires
such institutions to use the Call Report
to submit financial data. The Board’s
proposed rule also would extend the use
of the reduced reporting requirement to
uninsured state member banks if they
meet the criteria for covered depository
institutions identified in the rule.
The Board also proposes to include in
new subpart K, pursuant to its statutory
authority under section 9 of the FRA
and section 7(a)(3) of the FDI Act,
subsection 208.122 that will set forth
the general requirement that all state
member banks file consolidated reports
of condition and income in accordance
with the instructions for these reports.
Question 7: Is the proposed extension
of the reduced reporting requirement to
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include uninsured state member banks
that meet the same eligibility criteria
appropriate? Would any of the proposed
exclusionary criteria for covered
depository institutions be problematic
for uninsured state member banks?
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B. FDIC
The FDIC proposes to amend Part 304
of its Rules and Regulations, by
restructuring the regulation and creating
a ‘‘Subpart A’’ and ‘‘Subpart B.’’ In
Subpart A, the FDIC would put the
current text of Part 304, with limited
technical, non-substantive changes. The
technical, non-substantive changes
include: (1) Updating the address and
contact information in section 304.2; (2)
clarifying that sections 304.3(a) and (b)
apply to insured depository institutions;
(3) updating references in section
304.3(a) to the various Call Reports to
include the recently implemented
FFIEC 051 Call Report; and (4) updating
the references to FDIC divisions to
reflect changes in nomenclature. In
Subpart B, the FDIC proposes to include
the regulatory text implementing
Section 205.
The FDIC believes that the proposed
approach to restructuring Part 304 will
incorporate the entirety of the new,
substantive text of the proposed rule
that implements Section 205 of the
EGRRCPA with minimal effect to the
current text. Thus, a state nonmember
bank or state savings association that
believes it qualifies as a covered
depository institution would be able to
make that determination based on the
regulatory text contained in Subpart B.
Question 8: Is the proposed
restructuring of Part 304 helpful and
clear for users to understand? Why or
why not?
C. OCC
Insured depository institutions
identified in section 205 include
insured Federal branches of foreign
banks, as defined under section 3(s) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(s)). While these insured
Federal branches are included in the
statute, they currently file the FFIEC 002
report of condition. The FFIEC 002 is
used by insured and uninsured state
and Federal branches and agencies of
foreign banks and contains a significant
amount of information relating to the
operations and foreign connections of
these entities. As described above in the
International Activities section, this
additional information is necessary for
the OCC to supervise insured Federal
branches, and a reduced reporting
option would not be appropriate given
the nature of their activities. Therefore,
the OCC’s proposed rule would include
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a criterion excluding institutions that
file the FFIEC 002 report of condition
from being eligible for reduced
reporting.
In addition to insured depository
institutions, which are specifically
identified in section 205, the OCC also
supervises a number of uninsured
national banks, such as trust banks. The
OCC has permitted some of these
institutions to use the Call Report to
submit financial data and to use the
existing FFIEC 051 if they meet the
current eligibility requirements for filing
that Call Report. Therefore, the OCC’s
proposed rule would also extend the use
of the reduced reporting requirement to
uninsured national banks if they meet
the criteria for covered depository
institutions identified in the rule.
Question 9: Is the proposed extension
of the reduced reporting requirement to
include uninsured national banks
supervised by the OCC appropriate?
Would any of the proposed exclusionary
criteria for covered depository
institutions be problematic for
uninsured national banks supervised by
the OCC?
VI. Regulatory Analyses
A. Paperwork Reduction Act
Certain provisions of the proposed
rule affect ‘‘collections of information’’
within the meaning of the Paperwork
Reduction Act of 1995 (PRA) (44 U.S.C.
3501–3521). In accordance with the
requirements of the PRA, 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.
The agencies reviewed the proposed
rule, including the changes to the FFIEC
051 Call Report that are discussed in
this PRA section, and determined that it
would result in changes to certain
reporting requirements that have been
previously cleared by the OMB under
various control numbers. The proposed
rule would expand the eligibility to file
the FFIEC 051 Call Report to certain
institutions with $1 billion or more, but
less than $5 billion, in total assets that
meet other eligibility criteria. In
addition to the expanded eligibility to
file this report, the agencies also are
proposing other revisions to the FFIEC
051 Call Report, as discussed under
Current Actions below. These revisions
to the FFIEC 051 Call Report are
proposed to take effect as of the March
31, 2019, report date. The agencies are
proposing to extend for three years, with
revision, these information collections.
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Current Actions
Overview
First, as described above, the agencies
are proposing to revise the criteria for
determining whether an institution is
eligible to file the FFIEC 051 Call Report
to match the criteria in the proposed
rule. While the proposed rule provides
for reduced reporting on reports filed for
the first and third calendar quarters, the
agencies also propose to revise the
eligibility criteria to extend to all
eligible institutions with less than $5
billion in total assets that meet other
criteria in the rule the option to file the
FFIEC 051 Call Report for all four
calendar quarters. Therefore, if an
institution is eligible to file the FFIEC
051 Call Report for the first and third
calendar quarters pursuant to the rule,
the institution also could file the FFIEC
051 Call Report for the second and
fourth calendar quarters provided the
institution continues to meet the nonasset-size criteria. The revisions to the
filing eligibility would be made in the
General Instructions section of the Call
Report instructions and would include
the increase in the asset-size threshold
to less than $5 billion in total assets as
well as the addition of a criterion to
exclude institutions that are treated as
large or highly complex institutions for
deposit insurance assessment purposes.
The Call Report instructions currently
provide that, beginning with the first
quarterly report date following the
effective date of a business combination,
a transaction between entities under
common control, or a branch acquisition
that is not a business combination
involving an institution and one or more
other depository institutions, the
resulting institution, regardless of its
size prior to the transaction, must file
the FFIEC 041 Call Report if its
consolidated total assets after the
consummation of the transaction are $1
billion or more. The agencies are
proposing to remove this provision from
the instructions, but the resulting
institution may be required to file the
FFIEC 041 Call Report consistent with
the reservation of authority in the rule.
All of the proposed FFIEC 051 Call
Report eligibility criteria, along with
justifications, are provided above in
section II.A. of the Supplementary
Information section (‘‘Covered
Depository Institution’’). Based on June
30, 2018, Call Report data, there were
547 institutions with $1 billion or more,
but less than $5 billion in total assets
that likely would meet the definition of
‘‘covered depository institution’’ in the
proposed rule.
Second, the agencies are proposing to
revise the reporting frequency and
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applicability of certain data items in the
FFIEC 051 Call Report. Specifically, the
agencies are proposing to reduce the
reporting frequency of certain existing
data items in the FFIEC 051 Call Report
from quarterly to semiannual reporting.
This proposal would reduce reporting in
the first and third calendar quarters by
502 data items 37 or a reduction of
approximately 37 percent of the data
items included in the June 30, 2018,
FFIEC 051 Call Report.
Third, for covered depository
institutions with total assets of $1
billion or more, but less than $5 billion,
the agencies are proposing to add to the
FFIEC 051 Call Report certain data items
that these institutions currently report
on the FFIEC 041 Call Report, but
generally with reduced reporting
frequency. The agencies are proposing
to add these items to meet the agencies’
data needs and assist the agencies in
fulfilling their missions of ensuring the
safety and soundness of depository
institutions and the financial system, as
well as the protection of consumer
financial rights and providing deposit
insurance.
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Changes to the Frequency of Data
Collection in the FFIEC 051 Call Report
The agencies are proposing, for the
reasons explained below, to reduce the
frequency of the following items on the
FFIEC 051 Call Report from quarterly to
semiannual (i.e., these items would be
reported in the June 30 and December
31 Call Reports only):
• Schedule RI, Income Statement,
Memorandum item 14. Institutions
currently report the amount of otherthan-temporary impairment losses on
certain debt securities that are
recognized through earnings in this
Memorandum item. The agencies do not
believe it is necessary for institutions
eligible to file the FFIEC 051 Call Report
to continue to provide this amount on
a quarterly basis, as most of these
institutions are not currently reporting
losses in this item given current
economic conditions. The agencies note
that changes in the accounting for credit
losses will eliminate the need for this
item for an ever increasing percentage of
institutions through year-end 2022. In
the interim, the agencies can review
other-than-temporary impairment
information for the first and third
calendar quarters, as necessary, as part
of on-site examinations or through other
periodic monitoring.
37 This number includes 69 data items collected
on Schedule RC–T, Fiduciary and Related Services,
that are only reported by certain institutions with
fiduciary powers that have fiduciary activity to
report.
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• Schedule RC–C, Part I, Loans and
Leases, Memorandum items 1.a through
1.f, and Schedule RC–N, Past Due and
Nonaccrual Loans, Leases, and Other
Assets, Memorandum items 1.a through
1.f. Institutions currently report
breakdowns of troubled debt
restructurings by loan category,
separately for those restructurings in
compliance with their modified terms in
Schedule RC–C and those restructurings
that are past due 30 days or more or in
nonaccrual status in Schedule RC–N.
Institutions would still be required to
report the totals for their troubled debt
restructurings in Schedule RC–C, Part I,
Memorandum item 1.g, and Schedule
RC–N, Memorandum item 1.g, on a
quarterly basis. The agencies do not
believe it is necessary for institutions
eligible to file the FFIEC 051 Call Report
to continue to provide the breakdowns
of troubled debt restructurings on a
quarterly basis. The agencies can review
information on troubled debt
restructurings by loan category for the
first and third quarters as part of on-site
examinations or through other periodic
monitoring, as necessary.
• Schedule RC–E, Deposit Liabilities,
Memorandum item 1.a. Institutions
currently report the total amount of
Individual Retirement Account and
Keogh plan deposits in this
Memorandum item. The agencies do not
believe it is necessary for institutions
eligible to file the FFIEC 051 Call Report
to continue to provide these amounts on
a quarterly basis as this item generally
does not fluctuate significantly between
quarters for most eligible institutions.
The agencies can review information on
these deposits for the first and third
quarters as part of on-site examinations
or through other periodic monitoring, as
necessary.
• Schedule RC–E, Memorandum item
5. Institutions currently report whether
they offer consumer deposit products in
this Memorandum item. The agencies
do not believe it is necessary for
institutions eligible to file the FFIEC 051
Call Report to continue to provide this
information on a quarterly basis, as this
item does not change frequently for
most eligible institutions.
• Schedule RC–M, Memoranda, items
8.a through 8.c. In these items,
institutions currently report their
primary internet website address,
addresses for other websites used to
solicit deposits, and alternate trade
names used by the institutions. The
agencies do not believe it is necessary
for institutions eligible to file the FFIEC
051 Call Report to continue to provide
this information on a quarterly basis as
these items do not change frequently for
most eligible institutions.
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58441
• Schedule RC–R, Part II, Regulatory
Capital Risk-Weighted Assets, items 1
through 25, columns A through S. In
these items, institutions currently report
detailed information about the riskweighting of various types of assets and
other exposures under the agencies’
regulatory capital rules. Institutions still
would need to calculate risk-weighted
assets, maintain appropriate
documentation for this calculation, and
report items 26 through 31 of Part II, if
applicable, on a quarterly basis. The
agencies do not believe it is necessary
for institutions eligible to file the FFIEC
051 Call Report to continue to provide
the details of their risk-weighting
allocations and calculations in Schedule
RC–R, Part II, on a quarterly basis as the
agencies can adequately review
regulatory capital calculations for the
first and third calendar quarters as part
of on-site examinations or through other
types of periodic monitoring, as
necessary.
• Schedule RC–R, Part II,
Memorandum items 1 through 3,
including all subitems and columns.
Institutions currently report detailed
information in these items about
derivative exposures that are elements
of the risk-weighting process for these
exposures. The agencies do not believe
it is necessary for institutions eligible to
file the FFIEC 051 Call Report to
continue to report these amounts on a
quarterly basis. Generally, institutions
eligible to file the FFIEC 051 Call Report
do not have a significant amount of
derivatives contracts, and the agencies
can review information about
institutions’ risk-weighting calculations
for derivative exposures for the first and
third calendar quarters, as necessary, as
part of on-site examinations or through
other periodic monitoring.
• Schedule RC–T, Fiduciary and
Related Services, items 4 through 13,
columns A through D; items 14 through
22; and Memorandum items 3.a through
3.h, for institutions with total fiduciary
assets greater than $250 million but less
than or equal to $1 billion, and gross
fiduciary and related services income
less than or equal to 10 percent of total
revenue.38 Items 4 through 13 collect
breakdowns for managed and nonmanaged accounts of the assets and
number of accounts by type of fiduciary
account. Fiduciary and related services
income by type of fiduciary account is
reported in items 14 and 22.
Memorandum item 3 is used for
reporting on the number and market
38 Total fiduciary assets are measured as of the
preceding December 31. Gross fiduciary and related
services income is measured as a percentage of
revenue (net interest income plus noninterest
income) for the preceding calendar year.
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value of collective investment funds.
Currently, institutions with total
fiduciary assets greater than $250
million or with fiduciary income greater
than 10 percent of total revenue must
report these items on a quarterly basis.
The proposed change would reduce the
reporting of these items to semiannual
for institutions with total fiduciary
assets greater than $250 million but less
than or equal to $1 billion and with
fiduciary income less than or equal to
10 percent of total revenue. Institutions
with total fiduciary assets less than or
equal to $250 million that do not meet
the fiduciary income test already have
reduced reporting for these items (either
through an exemption or annual
reporting). The agencies do not believe
it is necessary for institutions eligible to
file the FFIEC 051 Call Report with total
fiduciary assets greater than $250
million but less than or equal to $1
billion that do not meet the fiduciary
income test to continue to provide
managed and non-managed account
data and collective investment fund
information on a quarterly basis, as
these items generally do not fluctuate
significantly between quarters for
institutions with fiduciary assets in this
size range. In addition, when quarter-toquarter and year-over-year comparisons
of an institution’s year-to-date income
from fiduciary activities, as reported in
the Call Report income statement, raise
supervisory concerns, the agencies can
review information on the composition
of fiduciary income for the first and
third calendar quarters as part of on-site
examinations or through other periodic
monitoring.
Detail for each affected data item
described above is shown in Appendix
A.
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Addition of Data Items to the FFIEC 051
Call Report for Institutions With Total
Assets of $1 Billion or More
The agencies are proposing to add
certain data items to the FFIEC 051 Call
Report that would apply only to covered
depository institutions with total assets
of $1 billion or more. These items are
currently reported by institutions with
total assets of $1 billion or more that file
the FFIEC 031 or FFIEC 041 Call Report,
but they are not required to be
completed by institutions with less than
$1 billion in total assets that file the
FFIEC 031, FFIEC 041, or FFIEC 051
Call Reports. Therefore, the additional
data items would not represent new
data items for covered depository
institutions with total assets of $1
billion or more, but rather are items
carried over from the FFIEC 041 version
of the Call Report, generally using the
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same definitions and calculations and
with reduced reporting frequency.
• Schedule RI, Memorandum items
15.a. through 15.d. These items provide
data on the three key categories of
service charges on certain deposit
accounts: Overdraft-related service
charges on consumer accounts, monthly
maintenance charges on consumer
accounts, and consumer ATM fees. The
agencies and the Bureau of Consumer
Financial Protection (Bureau) propose to
collect these items on an annual
reporting frequency as they provide the
only comprehensive data source from
which supervisors and policymakers
can estimate or evaluate the
composition of consumer deposit
account-related fees and how they affect
consumers and a depository
institution’s earnings stability. The
addition of these items to the Call
Report in 2015 has supported the
agencies and the Bureau in monitoring
these types of transactional costs
incurred by consumers. The data
specific to overdraft-related fees is
particularly pertinent for supervisors
and policymakers because they compose
the majority of consumer deposit service
charges (and for many institutions, of
total deposit service charges).
Continuing to collect these data on an
annual basis from covered depository
institutions with $1 billion or more in
total assets will support the agencies
and the Bureau in monitoring these
activities and informing any potential
future rulemaking. The agencies are
proposing to add these items to the
FFIEC 051 on an annual basis
(December 31) for covered depository
institutions with total assets of $1
billion or more that respond
affirmatively to the screening question
(Schedule RC–E, Memorandum item 5,
regarding whether an institution offers a
consumer deposit account product),
while institutions with total assets less
than $1 billion will not need to report
these items regardless of their response
to the screening question. Institutions
with total assets between $1 billion and
less than $5 billion that file the FFIEC
041 Call Report currently report this
information quarterly, so the proposed
annual reporting would represent a
frequency reduction for institutions
filing the FFIEC 051 Call Report, while
still meeting the agencies’ need for this
information.
• Schedule RI–C, Disaggregated Data
on the Allowance for Loan and Lease
Losses (ALLL). The agencies are
proposing to add a condensed version of
the existing FFIEC 041 Schedule RI–C to
the FFIEC 051 Call Report and reduce
the reporting frequency of this
condensed schedule from quarterly to
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semiannual (i.e., reported in the June 30
and December 31 Call Reports only).
The existing six columns in which
institutions report the ‘‘recorded
investment’’ and ‘‘related allowance’’ by
loan category and allowance
measurement method in Schedule RI–C
in the FFIEC 041 Call Report would be
combined into two columns in the
FFIEC 051 Call Report, one for total
recorded investment by loan category
(sum of existing Columns A, C, and E)
and the other for the total related
allowance by loan category (sum of
existing Columns B, D, and F) and any
unallocated allowance. Consistent with
the agencies’ proposed revisions to the
Call Report to address the changes in
the accounting for credit losses resulting
from the Financial Accounting
Standards Board’s Accounting
Standards Update 2016–13,39 effective
for the June 30, 2021, report date, text
referencing ‘‘recorded investment’’ and
‘‘allowance for loan and lease losses’’ in
the condensed version of the FFIEC 041
Schedule RI–C that would be added to
the FFIEC 051 reporting form would be
changed to ‘‘amortized cost’’ and
‘‘allowance for credit losses’’ (ACL),
respectively.40 From June 30, 2019,
through December 31, 2020, the
condensed allowance-related
information on the FFIEC 051 Call
Report and the related instructions
would include guidance stating that
institutions that have adopted ASU
2016–13 should report the amortized
cost and related ACL by loan category
(and any unallocated ACL). For the
transition period from June 30, 2021,
through December 31, 2022, the
reporting form and instructions for this
condensed allowance-related
information would be updated to
include guidance stating that
institutions that have not adopted ASU
2016–13 should report the ‘‘recorded
investment’’ and the ‘‘allowance for
loan and lease losses,’’ as applicable, in
these items. In addition, consistent with
the proposed revisions to address the
changes in accounting for credit losses,
the agencies also propose adding data
items for institutions to report the
disaggregated allowance balances for
each category of held-to-maturity (HTM)
securities to the FFIEC 051. The
agencies believe the condensed
semiannual information on the
composition of ALLL (allowance for
credit losses after adoption of ASU
2016–13) in relation to the total
39 See
83 FR 49160 (September 28, 2018).
amortized cost amounts to be reported
would exclude any accrued interest receivable that
is reported in ‘‘Other assets’’ on the Call Report
balance sheet.
40 The
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recorded investment (amortized cost
after adoption of ASU 2016–13) for each
loan category, and disaggregated
information on HTM securities
allowances, is necessary to adequately
supervise covered depository
institutions with total assets of $1
billion or more but less than $5 billion.
The information collected in Schedule
RI–C as it is proposed to be included in
the FFIEC 051 Call Report will support
the agencies’ analyses of the allowance
and credit risk management. The data
on allowance allocations by loan
category, when reviewed in conjunction
with the past due and nonaccrual data
reported by loan category in Schedule
RC–N, which will continue to be
reported on a quarterly basis, assist the
agencies in assessing an institution’s
credit risk exposures and evaluating the
appropriateness of the overall level of
its ALLL and its allocations by loan
category. If changes in the quarterly past
due and nonaccrual data by loan
category at individual institutions in
quarters when the disaggregated
allowance data would not be reported in
the FFIEC 051 Call Report raise
questions about the composition of the
allowance, supervisory follow-up can be
undertaken on a case-by-case basis. The
agencies note that many institutions
with $1 billion or more but less than $5
billion in total assets do not publicly
release quarterly financial statements,
which makes the Call Report data the
only information regularly available to
the agencies on the composition of the
allowance. By providing this detail in
the FFIEC 051 Call Report, which
supports the identification of changes in
the ALLL over time, examiners can
better perform off-site monitoring of
activity within the ALLL in periods
between examinations and when
planning for examinations.
• Schedule RC–E, Memorandum
items 6 and 7, including all subitems.
Institutions report disaggregated data on
balances in consumer and nonconsumer deposit accounts in these
items. These items are critical to the
agencies’ and the Bureau’s consumer
deposit product monitoring and
rulemaking mandates for several
reasons. As noted in the agencies’ 2013
notice 41 proposing the addition of these
items to the Call Report, surveys
indicate that over 90 percent of U.S.
households maintain at least one
deposit account. However, there are no
other reliable sources from which to
calculate the amount of funds held in
consumer accounts. The data now
reported in these items on the Call
Report significantly enhances the ability
41 78
FR 12141 (February 21, 2013).
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of the agencies and the Bureau to
monitor how different tiers of banks
serve consumers and, specifically,
consumer use of deposit accounts as
transactional, savings, and investment
vehicles. These data also permit the
agencies to conduct improved
assessments of institutional liquidity
risk and significantly enhance the
agencies’ ability to assess institutional
funding stability. The agencies are
proposing to add these items to the
FFIEC 051 on an annual basis
(December 31) for institutions with total
assets of $1 billion or more but less than
$5 billion that respond affirmatively to
the screening question (Schedule RC–E,
Memorandum item 5, regarding whether
an institution offers a consumer deposit
account product), while banks with total
assets less than $1 billion will not need
to report these items regardless of their
response to the screening question.
Institutions with total assets of $1
billion or more but less than $5 billion
that file the FFIEC 041 currently report
this information quarterly, so the
proposed annual reporting would
represent a frequency reduction for
institutions filing the FFIEC 051, while
still meeting the agencies’ need for this
information.
• Schedule RC–O, Other Data for
Deposit Insurance and FICO
Assessments, Memorandum item 2,
‘‘Estimated amount of uninsured
deposits, including related interest
accrued and unpaid.’’ The agencies are
proposing to add this data item on a
quarterly basis for institutions with total
assets of $1 billion or more but less than
$5 billion. The FDIC uses this data item
for the calculation of estimated insured
deposits, which is the denominator of
the Deposit Insurance Fund (DIF)
reserve ratio. (The numerator is the
balance of the DIF.) The DIF reserve
ratio is a key measure in assessing the
adequacy and viability of the fund and
is a driving force behind setting deposit
insurance assessment rate schedules.
For example, the FDIC evaluates
whether assessment rates are likely to be
sufficient to meet statutory requirements
related to the minimum reserve ratio.42
The FDIC also has established a longterm DIF management plan that adjusts
assessment rate schedules as the reserve
ratio reaches certain levels.43 Given that
assessment regulations depend on the
DIF reserve ratio, it is important that the
best information be used in estimating
insured deposits. This item is necessary
42 See e.g., 12 U.S.C. 1817 note. Generally, the
FDIC shall take such steps as may be necessary for
the reserve ratio of the DIF to reach 1.35 percent
of estimated insured deposits by September 30,
2020.
43 See 12 CFR 327.10.
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58443
for a more accurate calculation of the
DIF reserve ratio and to implement
related statutory requirements. This
information is also important for safety
and soundness purposes. Uninsured
deposit data are used to monitor
liquidity in a stress event. The higher
the percentage of uninsured deposits to
available liquidity sources, the greater
the liquidity risk to an institution as
uninsured depositors are more likely to
quickly move funds at risk as a result of
negative publicity or other adverse
information about the institution.
Detail for each affected data item
described above is shown in Appendix
B.
The revisions to the FFIEC 051 Call
Report described above are proposed to
take effect as of the March 31, 2019,
report date. The less than $5 billion
asset-size test for determining eligibility
to file the FFIEC 051 Call Report
beginning March 31, 2019, would be
based on the total assets reported on an
institution’s June 30, 2018, Call Report.
An institution eligible to file the FFIEC
051 Call Report also has the option to
file the FFIEC 041 Call Report. For an
institution with less than $5 billion in
total assets that qualifies to use the
FFIEC 051 Call Report for the first time
as a result of the agencies’ proposal to
increase the asset reporting threshold
for the FFIEC 051 Call Report from less
than $1 billion to less than $5 billion,
and that desires to use that report form
but is unable to do so for the March 31,
2019, Call Report date, the institution
may begin reporting on the FFIEC 051
Call Report as of the June 30, 2019,
report date or in a subsequent calendar
quarter of 2019. Alternatively, the
institution could wait until March 31,
2020, to begin reporting on the FFIEC
051 Call Report, assuming it meets the
asset-size threshold for eligibility as of
June 30, 2019, and meets the non-assetsize criteria as of March 31, 2020.
Beginning in 2020, an institution should
file whichever version of the Call Report
it was both eligible and chose to file in
the first quarter of that year for the
remainder of that year if it continues to
meet the non-asset-size criteria.
Proposed Revision, With Extension, of
the Following Information Collections
Report Title: Consolidated Reports of
Condition and Income (Call Report).
Form Number: FFIEC 051 (for eligible
small institutions).
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.
Type of Review: Revision and
extension of currently approved
collections.
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Timing
the various types of assets and other
exposures that are reported in Schedule
RC–R, Part II, items 1 through 25,
columns A through S, to be beneficial in
terms of reducing some of the reporting
burden associated with the Call Report
even though institutions would still
need to calculate, maintain appropriate
documentation for, and report the total
amount of their risk-weighted assets in
Schedule RC–R, Part II. How would
semiannual reporting of these riskweighting data in Schedule RC–R, Part
II affect an institution’s ability to
determine its compliance each calendar
quarter with the prompt corrective
action requirements in 12 CFR part 6
(OCC); 12 CFR part 208 (Board); 12 CFR
324, subpart H (FDIC)?
b. Whether the data items that the
agencies propose for reduced reporting
for covered depository institutions are
appropriate. Why or why not?
c. The agencies are proposing to
discontinue the treatment in the current
FFIEC 051 Call Report instructions for
institutions with less than $1 billion in
total assets that immediately
disqualifies the institution from filing
the FFIEC 051 Call Report if it exceeds
the asset-size criterion due to a merger
or acquisition. Is this appropriate and
why?
Comments also are invited on:
d. Whether the collection of
information is necessary for the proper
performance of the agencies’ functions,
including whether the information has
practical utility;
e. The accuracy or the estimate of the
burden of the information collections,
including the validity of the
methodology and assumptions used;
f. Ways to enhance the quality, utility,
and clarity of the information to be
collected;
g. Ways to minimize the burden of the
information collections on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
h. Estimates of capital or startup costs
and costs of operation, maintenance,
and purchase of services to provide
information.
The proposed changes in this notice
would be effective beginning with the
March 31, 2019, Call Report.
OCC:
OMB Control No.: 1557–0081.
Estimated Number of Respondents:
876 national banks and federal savings
associations.
Estimated Average Burden per
Response: 38.29 burden hours per
quarter to file.
Estimated Total Annual Burden:
134,168 burden hours to file.
Board:
OMB Control No.: 7100–0036.
Estimated Number of Respondents:
563 state member banks.
Estimated Average Burden per
Response: 41.75 burden hours per
quarter to file.
Estimated Total Annual Burden:
94,021 burden hours to file.
FDIC:
OMB Control No.: 3064–0052.
Estimated Number of Respondents:
2,685 insured state nonmember banks
and state savings associations.
Estimated Average Burden per
Response: 39.60 burden hours per
quarter to file.
Estimated Total Annual Burden:
425,304 burden hours to file.
When the estimates are calculated
across the agencies considering all
expected filers of the FFIEC 051 Call
Report under this proposal, the
estimated average burden hours per
calendar quarter for this report are
39.95. The burden hours for current
FFIEC 051 Call Report filers are 39.39.
The proposed revisions to the FFIEC
051 Call Report in this notice would
represent a reduction in estimated
average burden hours per quarter of 1.18
hours to 38.21 hours for the current
FFIEC 051 Call Report filers. For newly
eligible filers, the average burden hours
would decrease from approximately
64.49 hours to 52.31 hours, a reduction
of 12.18 hours per quarter. 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
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).
Request for Comments
Public comment is requested on all
aspects of this joint notice. Comment is
specifically invited on:
a. Whether institutions would find the
proposal to reduce the reporting
frequency of the risk-weighting data for
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B. Regulatory Flexibility Act Analysis
The Regulatory Flexibility Act 44
(RFA) requires an agency to either
provide an initial regulatory flexibility
analysis with a proposed rule for which
general notice of proposed rulemaking
is required or to certify that the
proposed rule will not have a significant
economic impact on a substantial
number of small entities. The U.S. Small
Business Administration (SBA)
44 5
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establishes size standards that define
which entities are small businesses for
purposes of the RFA.45 Under
regulations issued by the SBA, the size
standard to be considered a small
business for banking entities subject to
the proposed rule is $550 million or less
in consolidated assets.46
OCC: The RFA requires an agency, in
connection with a proposed rule, to
prepare an Initial Regulatory Flexibility
Analysis describing the impact of the
rule on small entities (defined by the
SBA for purposes of the RFA to include
commercial banks and savings
institutions with total assets of $550
million or less and trust companies with
total revenue of $38.5 million or less) or
to certify that the proposed rule would
not have a significant economic impact
on a substantial number of small
entities. As of December 31, 2017, the
OCC supervised 886 small entities. The
rule would expand eligibility to file the
FFIEC 051 version of the Call Report to
institutions with total assets of between
$1 billion and less than $5 billion. None
of these newly eligible institutions
would be considered small entities as
defined by the SBA. Therefore, the OCC
certifies that the proposed rule would
not have a significant economic impact
on a substantial number of OCCsupervised small entities.
Board: In accordance with section
603(a) of the RFA, the Board is
publishing an initial regulatory
flexibility analysis for the proposed
rule. The RFA requires an agency to
prepare an initial regulatory flexibility
analysis, which must contain (1) a
description of the reasons why action by
the agency is being considered; (2) a
succinct statement of the objectives of,
and legal basis for, the proposed rule;
(3) a description of and, where feasible,
an estimate of the number of small
entities to which the proposed rule will
apply; (4) a description of the projected
reporting, recordkeeping and other
compliance requirements of the
proposed rule; (5) an identification, to
the extent practicable, of all relevant
Federal rules which may duplicate,
overlap or conflict with the proposed
rule; and (6) a description of significant
alternatives to the proposed rule which
accomplish its stated objectives.47
The Board has considered the
potential impact of the proposed rule on
small entities in accordance with the
RFA. Based on its analysis and for the
45 U.S. SBA, Table of Small Business Size
Standards Matched to North American Industry
Classification System Codes, available at https://
www.sba.gov/sites/default/files/files/Size_
Standards_Table.pdf.
46 See 13 CFR 121.201.
47 5 U.S.C. 603.
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reasons stated below, the Board believes
that this proposed rule will not have a
significant economic impact on a
substantial number of small entities.
Nevertheless, the Board is publishing
and inviting comment on this initial
regulatory flexibility analysis. A final
regulatory flexibility analysis will be
conducted after comments received
during the public comment period have
been considered.
1. Reasons for the Proposal
As discussed in the Supplementary
Information, the agencies are proposing
to implement section 205 of EGRRCPA,
which requires the agencies to allow for
a reduced reporting requirement for a
‘‘covered depository institution’’ when
an institution files the first and third
Call Reports for a year. The proposal
would define ‘‘covered depository
institution’’ and establish the reduced
reporting permissible for such
institutions in the Call Report for the
first and third calendar quarters of a
year. In connection with the
implementation of reduced reporting
mandated by section 205, the Board is
proposing to set forth the general
requirement that all state member banks
must file consolidated reports of
condition pursuant to its statutory
authority under section 9 of the FRA
and section 7(a)(3) of the FDIA.
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2. Statement of Objectives and Legal
Basis
As discussed above, the agencies’
objectives in proposing this rule are to
reduce the reporting burden for covered
depository institutions by allowing
them to file the FFIEC 051 Call Report
in the first and third quarters of a
calendar year. The Board has explicit
authority under section 7 of the FDI Act,
12 U.S.C. 1817(a)(3) and (12), and
section 9 of the Federal Reserve Act, 12
U.S.C. 324, to establish reporting
requirements and eligibility criteria to
file a reduced report of condition for
state member banks.
3. Description of Small Entities to
Which the Regulation Applies
The Board’s proposal would apply to
state member banks. Under regulations
issued by the SBA, a small entity
includes a state member bank with total
assets of $550 million or less. As of June
30, 2018, there were approximately 533
state member banks that qualified as
small entities. The requirement set forth
in section 208.122 of the Board’s
proposed rule requiring state member
banks to file reports of condition would
apply to all state member banks,
regardless of size. However, proposed
section 208.122 does not establish a new
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requirement, but only implements in
Board regulation a statutory requirement
to which state member banks were
already subject.
Section 208.123 of the Board’s
proposed rule would allow state
member banks that qualify as covered
depository institutions to file reduced
reporting in first and third calendar
quarters of the year, which would apply
to approximately 533 state member
banks that qualify as small entities.
However, proposed section 208.123
would allow but not require these small
state member banks to file reduced
reporting. Accordingly, the proposed
rule would not have a significant
economic impact on a substantial
number of small entities.
4. Projected Reporting, Recordkeeping,
and Other Compliance Requirements
The proposed rule would not impose
any new reporting, recordkeeping, or
other compliance requirements on small
state member banks. First, state member
banks are already required to file reports
of condition each quarter of the calendar
year in accordance with the instructions
of such reports. Second, the proposed
rule would allow small state member
banks that qualify as covered depository
institutions to reduce their reporting,
recordkeeping, and compliance burden
by filing the FFIEC 051 Call Report, the
shortest version of the Call Report, with
further reduced reporting in the first
and third calendar quarters. As a result,
the Board expects that the proposed rule
will reduce the reporting and associated
recordkeeping and compliance costs for
the majority of small state member
banks.
5. Identification of Duplicative,
Overlapping, or Conflicting Federal
Regulations
The Board has not identified any
likely duplication, overlap and/or
potential conflict between the proposed
rule and any Federal rule.
6. Discussion of Significant Alternatives
The Board believes the proposed rule
will not have a significant economic
impact on small state member banks
and, as discussed in Supplementary
Information IV, does not believe there
are any significant alternatives to the
proposal that would reduce the impact
of the proposal.
FDIC: The RFA requires that, in
connection with a notice of proposed
rulemaking, an agency prepare and
make available for public comment an
initial regulatory flexibility analysis that
describes the impact of the proposed
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58445
rule on small entities.48 However, a
regulatory flexibility analysis is not
required if the agency certifies that the
rule will not have a significant
economic impact on a substantial
number of small entities, and publishes
its certification and a short explanatory
statement in the Federal Register
together with the rule. The SBA has
defined ‘‘small entities’’ to include
banking organizations with total assets
of less than or equal to $550 million.49
As of June 30, 2018 Call Report data,
the FDIC supervises 3,575 insured
depository institutions, of which 2,763
are considered small entities for the
purposes of RFA. For the reasons
described below, the FDIC certifies that
the proposed rule will not have a
significant economic impact on a
substantial number of small entities.
As the agencies discussed in the
Supplementary Information section
above, the proposed rule would
implement section 205 of EGRRCPA by
defining ‘‘covered depository
institution’’ to, among other things,
expand eligibility for filing the FFIEC
051 Call Report to insured depository
institutions with $1 billion or more, but
less than $5 billion in total assets.
Through a related PRA notice, the
agencies are proposing to reduce the
reporting frequency for more than 400
data items on the FFIEC 051 Call Report
for the first and third reports of
condition for a year, and to add certain
data items to the FFIEC 051 Call Report
that would apply only to covered
depository institutions with total assets
of $1 billion or more. Out of the
additional data items, only 1 would be
required to be reported every quarter,
while the remaining only would be
required semiannually or annually (i.e.,
in the second and fourth quarters, or
only the fourth quarter).
The FDIC estimates that under the
proposed definition of ‘‘covered
depository institution,’’ 295 FDICsupervised depository institutions that
reported total assets of $1 billion or
more, but less than $5 billion, could be
eligible to file the FFIEC 051 Call Report
assuming they meet the other non-asset48 5
U.S.C. 601 et seq.
SBA defines a small banking organization
as having $550 million or less in assets, where ‘‘a
financial institution’s assets are determined by
averaging the assets reported on its four quarterly
financial statements for the preceding year.’’ See 13
CFR 121.201 (as amended, effective December 2,
2014). ‘‘SBA counts the receipts, employees, or
other measure of size of the concern whose size is
at issue and all of its domestic and foreign
affiliates.’’ See 13 CFR 121.103. Following these
regulations, the FDIC uses a covered entity’s
affiliated and acquired assets, averaged over the
preceding four quarters, to determine whether the
covered entity is ‘‘small’’ for the purposes of RFA.
49 The
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size criteria under the proposed rule.
However, because this aspect of the rule
only affects institutions with $1 billion
or more, but less than $5 billion in total
assets, it will not affect any small, FDICsupervised institutions.
As the agencies discussed in the PRA
section, the FDIC is proposing to reduce
the reporting frequency of more than
400 data items on the FFIEC 051 Call
Report for the first and third calendar
quarters. These data items are currently
collected every calendar quarter on the
FFIEC 051 Call Report. Every covered
depository institution with less than $5
billion in total assets that files the FFIEC
051 Call Report would experience a
reduction in reporting for the first and
third calendar quarters as a result of this
proposal. The FDIC estimates that the
proposed reduction in reporting
frequency of more than 400 data items
for covered depository institutions in
the first and third calendar quarters
would reduce the average quarterly
burden hours by 1.18 hours per
institution. For the 2,221 small, FDICsupervised depository institutions that
filed the FFIEC 051 Call Report for the
June 30, 2018 report date, this
represents a total estimated burden
reduction of 2,621 hours per quarter.50
While the proposed reduced reporting
could affect a substantial number of
small, FDIC-supervised depository
institutions, it would not result in a
significant economic impact.
Based on the agencies’ total hourly
wage rate of $117 for Call Report
preparation, and the reduction in
reporting hours resulting from the
proposed reduced reporting frequency
of certain items in the FFIEC 051 Call
Report discussed in the PRA section, it
is estimated that annual reporting costs
could be $1,226,628 less for small,
FDIC-supervised insured depository
institutions that file the FFIEC 051 Call
Report, or 0.011 percent of total
annualized non-interest expenses.51
The proposed rule could pose some
additional regulatory costs for small,
FDIC-supervised depository institutions
that file the FFIEC 051 Call Report that
are associated with changes to internal
systems or processes. The FDIC
anticipates that costs associated with
either switching to file the FFIEC 051
Call Report, or reprogramming for
reduced reporting in the first and third
calendar quarters, would be one-time
costs. However, these costs are difficult
to estimate accurately with available
information because they depend upon
50 1.18
hours * 2,221 institutions.
per hour * 2,621 hours per quarter * 4
quarters per year. FDIC Call Report Data June 30th,
2018.
51 $117
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the individual characteristics of each
insured depository institution, their
recordkeeping and reporting systems,
and the decisions of senior
management.
Based on the information above, the
FDIC certifies that the proposed rule
would not have a significant economic
impact, although a substantial number
of small entities would be affected.
The FDIC invites comments on all
aspects of the supporting information
provided in this RFA section. In
particular, would this rule have any
significant effects on small entities that
the FDIC has not identified?
C. Plain Language
Section 722 of the Gramm-LeachBliley Act requires the Federal banking
agencies to use plain language in all
proposed and final rules published after
January 1, 2000. The agencies have
sought to present the proposed rule in
a simple and straightforward manner,
and invite comment on the use of plain
language. For example:
• Have the agencies organized the
material to suit your needs? If not, how
could they present the rule more
clearly?
• Are the requirements in the rule
clearly stated? If not, how could the rule
be more clearly stated?
• Do the regulations contain technical
language or jargon that is not clear? If
so, which language requires
clarification?
• Would a different format (grouping
and order of sections, use of headings,
paragraphing) make the regulation
easier to understand? If so, what
changes would achieve that?
• Is this section format adequate? If
not, which of the sections should be
changed and how?
• What other changes can the
agencies incorporate to make the
regulation easier to understand?
D. Riegle Community Development and
Regulatory Improvement Act of 1994
The Riegle Community Development
and Regulatory Improvement Act of
1994 (RCDRIA) requires that each
Federal banking agency, in determining
the effective date and administrative
compliance requirements for new
regulations that impose additional
reporting, disclosure, or other
requirements on IDIs, consider,
consistent with principles of safety and
soundness and the public interest, any
administrative burdens that such
regulations would place on depository
institutions, including small depository
institutions, and customers of
depository institutions, as well as the
benefits of such regulations. In addition,
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new regulations and amendments to
regulations that impose additional
reporting, disclosures, or other new
requirements on IDIs generally must
take effect on the first day of a calendar
quarter that begins on or after the date
on which the regulations are published
in final form.52
Because the proposal would not
impose additional reporting, disclosure,
or other requirements on IDIs, section
302 of the RCDRIA therefore does not
apply. Nevertheless, the requirements of
RCDRIA will be considered as part of
the overall rulemaking process. In
addition, the agencies also invite any
other comments that further will inform
the agencies’ consideration of RCDRIA.
E. OCC Unfunded Mandates Reform Act
of 1995
The OCC analyzed the proposed rule
under the factors set forth in the
Unfunded Mandates Reform Act of 1995
(UMRA) (2 U.S.C. 1532). Under this
analysis, the OCC considered whether
the proposed rule includes a Federal
mandate that may result in the
expenditure by State, local, and Tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
in any one year (adjusted for inflation).
There are 123 national banks and
Federal savings associations with total
assets between $1 billion and less than
$5 billion that could be eligible for
reduced reporting under the proposed
rule. The OCC estimates that each of
these institutions that switches to the
FFIEC 051 could save approximately
$6,000 per year. Savings may be less
during the first year of implementation
due to costs associated with updating
systems and processes, but these costs
are not expected to exceed the estimated
savings. Therefore, the OCC has
determined that this proposed rule
would not result in expenditures by
State, local, and Tribal governments, or
the private sector, of $100 million or
more in any one year. Accordingly, the
OCC has not prepared a written
statement to accompany this proposal.
Appendix A: Proposed Reductions in
Frequency of Collection for the FFIEC
051
The following data items are currently
collected on the FFIEC 051 quarterly. The
data items are proposed to be collected
semiannually in the June and December
reports only.
52 12
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Schedule
Item
Item name
RI .......................
M.14 ...............................................................
RC–C, Part I ......
M.1.a.(1) .........................................................
RC–C, Part I ......
M.1.a.(2) .........................................................
RC–C, Part I ......
M.1.b ..............................................................
RC–C, Part I ......
M.1.c ...............................................................
RC–C, Part I ......
M.1.d.(1) .........................................................
RC–C, Part I ......
M.1.d.(2) .........................................................
RC–C, Part I ......
M.1.e ..............................................................
RC–C, Part I ......
M.1.f ...............................................................
RC–C, Part I ......
M.1.f.(1) ..........................................................
RC–C, Part I ......
M.1.f.(4).(a) .....................................................
RC–C, Part I ......
M.1.f.(4).(b) .....................................................
RC–C, Part I ......
M.1.f.(4).(c) .....................................................
RC–C, Part I ......
M.1.f.(5) ..........................................................
RC–E .................
M.1.a ..............................................................
RC–E .................
M.5 .................................................................
Other-than-temporary impairment
losses on held-to-maturity and
available-for-sale debt securities
recognized in earnings.
Loans restructured in troubled debt
restructurings (TDRs) that are in
compliance with their modified
terms: 1–4 family residential construction loans.
Loans restructured in TDRs that are
in compliance with their modified
terms: Other construction loans
and all land development and other
land loans.
Loans restructured in TDRs that are
in compliance with their modified
terms: Loans secured by 1–4 family residential properties.
Loans restructured in TDRs that are
in compliance with their modified
terms: Secured by multifamily (5 or
more) residential properties.
Loans restructured in TDRs that are
in compliance with their modified
terms: Loans secured by owner-occupied nonfarm nonresidential
properties.
Loans restructured in TDRs that are
in compliance with their modified
terms: Loans secured by other
nonfarm nonresidential properties.
Loans restructured in TDRs that are
in compliance with their modified
terms: Commercial and industrial
loans.
Loans restructured in TDRs that are
in compliance with their modified
terms: All other loans (include
loans to individuals for household,
family, and other personal expenditures).
Loans restructured in TDRs that are
in compliance with their modified
terms: Loans secured by farmland.
Loans restructured in TDRs that are
in compliance with their modified
terms: Credit cards.
Loans restructured in TDRs that are
in compliance with their modified
terms: Automobile loans.
Loans restructured in TDRs that are
in compliance with their modified
terms: Other (includes revolving
credit plans other than credit cards
and other consumer loans).
Loans restructured in TDRs that are
in compliance with their modified
terms: Loans to finance agricultural
production and other loans to farmers included in Schedule RC–C,
part I, Memorandum item 1.f,
above.
Total Individual Retirement Accounts
(IRAs) and Keogh Plan accounts.
Does your institution offer one or
more consumer deposit account
products, i.e., transaction account
or nontransaction savings account
deposit products intended primarily
for individuals for personal, household, or family use?.
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MDRM No.(s)
RIADJ321.
RCONK158.
RCONK159.
RCONF576.
RCONK160.
RCONK161.
RCONK162.
RCONK256.
RCONK165.
RCONK166.
RCONK098.
RCONK203.
RCONK204.
RCONK168.
RCON6835.
RCONP752.
19NOP2
58447
khammond on DSK30JT082PROD with PROPOSALS2
58448
Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules
Schedule
Item
Item name
RC–M .................
8.a ..................................................................
RC–M .................
8.b ..................................................................
RC–M .................
8.c ...................................................................
RC–N .................
M.1.a.(1) .........................................................
RC–N .................
M.1.a.(2) .........................................................
RC–N .................
M.1.b ..............................................................
RC–N .................
M.1.c ...............................................................
RC–N .................
M.1.d.(1) .........................................................
RC–N .................
M.1.d.(2) .........................................................
RC–N .................
M.1.e ..............................................................
RC–N .................
M.1.f ...............................................................
RC–N .................
M.1.f.(1) ..........................................................
RC–N .................
M.1.f.(4)(a) ......................................................
RC–N .................
M.1.f.(4)(b) ......................................................
RC–N .................
M.1.f.(4)(c) ......................................................
Uniform Resource Locator (URL) of
the reporting institution’s primary
Internet Web site (home page), if
any (Example:
www.examplebank.com).
URLs of all other public-facing Internet websites that the reporting institution uses to accept or solicit
deposits from the public, if any.
Trade names other than the reporting
institution’s legal title used to identify one or more of the institution’s
physical offices at which deposits
are accepted or solicited from the
public, if any.
Loans restructured in troubled debt
restructurings (TDRs) included in
Schedule RC–N, items 1 through
7, above: 1–4 family residential
construction loans.
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Other construction loans and all land development and other land loans.
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Loans secured
by 1–4 family residential properties.
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Secured by multifamily (5 or more) residential
properties.
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Loans secured
by owner-occupied nonfarm nonresidential properties.
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Loans secured
by other nonfarm nonresidential
properties.
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Commercial and
industrial loans.
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: All other loans
(include loans to individuals for
household, family, and other personal expenditures).
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Loans secured
by farmland.
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Credit cards.
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Automobile
loans.
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Other (includes
revolving credit plans other than
credit cards and other consumer
loans).
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MDRM No.(s)
TEXT4087.
TE01N528, TE02N528, TE03N528,
TE04N528, TE05N528, TE06N528,
TE07N528, TE08N528, TE09N528,
TE10N528.
TE01N529, TE02N529, TE03N529,
TE04N529, TE05N529, TE06N529.
RCONK105, RCONK106,
RCONK107.
RCONK108, RCONK109,
RCONK110.
RCONF661, RCONF662,
RCONF663.
RCONK111, RCONK112,
RCONK113.
RCONK114, RCONK115,
RCONK116.
RCONK117, RCONK118,
RCONK119.
RCONK257, RCONK258,
RCONK259.
RCONK126, RCONK127,
RCONK128.
RCONK130, RCONK131,
RCONK132.
RCONK274, RCONK275,
RCONK276.
RCONK277, RCONK278,
RCONK279.
RCONK280, RCONK281,
RCONK282.
19NOP2
khammond on DSK30JT082PROD with PROPOSALS2
Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules
Schedule
Item
Item name
RC–N .................
M.1.f.(5) ..........................................................
RC–R, Part II .....
1 .....................................................................
Loans restructured in TDRs included
in Schedule RC–N, items 1
through 7, above: Loans to finance
agricultural production and other
loans to farmers.
Cash and balances due from depository institutions.
RC–R, Part II .....
2.a ..................................................................
Held-to-maturity securities .................
RC–R, Part II .....
2.b ..................................................................
Available-for-sale securities ...............
RC–R, Part II .....
3.a ..................................................................
Federal funds sold .............................
RC–R, Part II .....
3.b ..................................................................
RC–R, Part II .....
4.a ..................................................................
Securities purchased under agreements to resell.
Loans and leases held for sale: Residential mortgage exposures.
RC–R, Part II .....
4.b ..................................................................
Loans and leases held for sale: High
volatility commercial real estate exposures.
RC–R, Part II .....
4.c ...................................................................
Loans and leases held for sale: Exposures past due 90 days or more
or on nonaccrual.
RC–R, Part II .....
4.d ..................................................................
Loans and leases held for sale: All
other exposures.
RC–R, Part II .....
5.a ..................................................................
Loans and leases held for investment: Residential mortgage exposures.
RC–R, Part II .....
5.b ..................................................................
Loans and leases held for investment: High volatility commercial
real estate exposures.
RC–R, Part II .....
5.c ...................................................................
Loans and leases held for investment: Exposures past due 90 days
or more or on nonaccrual.
RC–R, Part II .....
5.d ..................................................................
Loans and leases held for investment: All other exposures.
RC–R, Part II .....
6 .....................................................................
LESS: Allowance for loan and lease
losses.
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58449
MDRM No.(s)
RCONK138, RCONK139,
RCONK140.
RCOND957, RCOND958,
RCOND959, RCOND960,
RCONS396, RCONS397,
RCONS398.
RCOND961, RCOND962,
RCOND963, RCOND964,
RCOND965, RCONHJ74,
RCONHJ75, RCONS399,
RCONS400.
RCOND967, RCOND968,
RCOND969, RCOND970,
RCONH271, RCONH272,
RCONHJ76, RCONHJ77,
RCONJA21, RCONS402,
RCONS403, RCONS405,
RCONS406.
RCOND971, RCOND972,
RCOND973, RCOND974,
RCONS410, RCONS411.
RCONH171, RCONH172.
RCONH173, RCONH273,
RCONH274, RCONS413,
RCONS414, RCONS415,
RCONS416, RCONS417.
RCONH174, RCONH175,
RCONH176, RCONH177,
RCONH275, RCONH276,
RCONS419, RCONS420,
RCONS421.
RCONH277, RCONH278,
RCONHJ78, RCONHJ79,
RCONS423, RCONS424,
RCONS425, RCONS426,
RCONS427, RCONS428,
RCONS429.
RCONH279, RCONH280,
RCONHJ80, RCONHJ81,
RCONS431, RCONS432,
RCONS433, RCONS434,
RCONS435, RCONS436,
RCONS437.
RCONH178, RCONH281,
RCONH282, RCONS439,
RCONS440, RCONS441,
RCONS442, RCONS443.
RCONH179, RCONH180,
RCONH181, RCONH182,
RCONH283, RCONH284,
RCONS445, RCONS446,
RCONS447.
RCONH285, RCONH286,
RCONHJ82, RCONHJ83,
RCONS449, RCONS450,
RCONS451, RCONS452,
RCONS453, RCONS454,
RCONS455.
RCONH287, RCONH288,
RCONHJ84, RCONHJ85,
RCONS457, RCONS458,
RCONS459, RCONS460,
RCONS461, RCONS462,
RCONS463.
RCON3123 (column A), RCON3123
(column B).
19NOP2
khammond on DSK30JT082PROD with PROPOSALS2
58450
Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules
Schedule
Item
Item name
RC–R, Part II .....
7 .....................................................................
Trading assets ...................................
RC–R, Part II .....
8 .....................................................................
All other assets ..................................
RC–R, Part II .....
8.a ..................................................................
RC–R, Part II .....
8.b ..................................................................
RC–R, Part II .....
9.a ..................................................................
RC–R, Part II .....
9.b ..................................................................
RC–R, Part II .....
9.c ...................................................................
RC–R, Part II .....
9.d ..................................................................
RC–R, Part II .....
10 ...................................................................
RC–R, Part II .....
11 ...................................................................
RC–R, Part II .....
12 ...................................................................
RC–R, Part II .....
13 ...................................................................
RC–R, Part II .....
14 ...................................................................
RC–R, Part II .....
15 ...................................................................
RC–R, Part II .....
16 ...................................................................
RC–R, Part II .....
17 ...................................................................
Separate account bank-owned life insurance.
Default fund contributions to central
RCONH298, RCONH299.
counterparties.
On-balance sheet securitization exRCONS475, RCONS476,
posures: Held-to-maturity securities.
RCONS477, RCONS478,
RCONS479.
On-balance sheet securitization exRCONS480, RCONS481,
posures: Available-for-sale securiRCONS482, RCONS483,
ties.
RCONS484.
On-balance sheet securitization exRCONS485, RCONS486,
posures: Trading assets.
RCONS487, RCONS488,
RCONS489.
On-balance sheet securitization exRCONS490, RCONS491,
posures: All other on-balance
RCONS492, RCONS493,
sheet securitization exposures.
RCONS494.
Off-balance sheet securitization exRCONS495, RCONS496,
posures.
RCONS497, RCONS498,
RCONS499.
Total balance sheet assets ................ RCON2170, RCOND987,
RCOND988, RCOND989,
RCOND990, RCONH300,
RCONHJ90, RCONHJ91,
RCONS500, RCONS503,
RCONS505, RCONS506,
RCONS507, RCONS510.
Financial standby letters of credit ...... RCOND991, RCOND992,
RCOND993, RCOND994,
RCOND995, RCOND996,
RCONHJ92, RCONHJ93,
RCONS511.
Performance standby letters of credit RCOND997, RCOND998,
and transaction-related contingent
RCOND999, RCONG603,
items.
RCONG604, RCONG605,
RCONS512.
Commercial and similar letters of
RCONG606, RCONG607,
credit with an original maturity of
RCONG608, RCONG609,
one year or less.
RCONG610, RCONG611,
RCONHJ94, RCONHJ95,
RCONS513.
Retained recourse on small business RCONG612, RCONG613,
obligations sold with recourse.
RCONG614, RCONG615,
RCONG616, RCONG617,
RCONS514.
Repo-style transactions ..................... RCONH301, RCONH302,
RCONS515, RCONS516,
RCONS517, RCONS518,
RCONS519, RCONS520,
RCONS521, RCONS522,
RCONS523.
All other off-balance sheet liabilities .. RCONG618, RCONG619,
RCONG620, RCONG621,
RCONG622, RCONG623,
RCONS524.
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MDRM No.(s)
RCOND976, RCOND977,
RCOND978, RCOND979,
RCOND980, RCONH186,
RCONH187, RCONH290,
RCONH291, RCONH292,
RCONHJ86, RCONHJ87,
RCONS466, RCONS467.
RCOND981, RCOND982,
RCOND983, RCOND984,
RCOND985, RCONH185,
RCONH188, RCONH294,
RCONH295, RCONHJ88,
RCONHJ89, RCONS469,
RCONS470, RCONS471.
RCONH296, RCONH297.
19NOP2
khammond on DSK30JT082PROD with PROPOSALS2
Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules
Schedule
Item
Item name
RC–R, Part II .....
18.a ................................................................
Unused commitments: Original maturity of one year or less.
RC–R, Part II .....
18.b ................................................................
Unused commitments: Original maturity exceeding one year.
RC–R, Part II .....
19 ...................................................................
RC–R, Part II .....
20 ...................................................................
Unconditionally cancelable commitments.
Over-the-counter derivatives ..............
RC–R, Part II .....
21 ...................................................................
Centrally cleared derivatives ..............
RC–R, Part II .....
22 ...................................................................
Unsettled transactions (failed trades)
RC–R, Part II .....
23 ...................................................................
Total assets, derivatives, off-balance
sheet items, and other items subject to risk weighting by risk-weight
category.
RC–R, Part II .....
25 ...................................................................
Risk-weighted assets by risk-weight
category.
RC–R, Part II .....
M.1 .................................................................
RC–R, Part II .....
M.2.a ..............................................................
RC–R, Part II .....
M.2.b ..............................................................
RC–R, Part II .....
M.2.c ...............................................................
RC–R, Part II .....
M.2.d ..............................................................
RC–R, Part II .....
M.2.e ..............................................................
RC–R, Part II .....
M.2.f ...............................................................
RC–R, Part II .....
M.2.g ..............................................................
RC–R, Part II .....
M.3.a ..............................................................
Current credit exposure across all
derivative contracts covered by the
regulatory capital rules.
Notional principal amounts of overthe-counter derivative contracts: Interest rate.
Notional principal amounts of overthe-counter derivative contracts:
Foreign exchange rate and gold.
Notional principal amounts of overthe-counter derivative contracts:
Credit (investment grade reference
asset).
Notional principal amounts of overthe-counter derivative contracts:
Credit (non-investment grade reference asset).
Notional principal amounts of overthe-counter derivative contracts:
Equity.
Notional principal amounts of overthe-counter derivative contracts:
Precious metals (except gold).
Notional principal amounts of overthe-counter derivative contracts:.
Notional principal amounts of centrally cleared derivative contracts:
Interest rate.
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MDRM No.(s)
RCONH303, RCONH304,
RCONHJ96, RCONHJ97,
RCONS525, RCONS526,
RCONS527, RCONS528,
RCONS529, RCONS530,
RCONS531.
RCONG624, RCONG625,
RCONG626, RCONG627,
RCONG628, RCONG629,
RCONH307, RCONH308,
RCONHJ98, RCONHJ99,
RCONS539.
RCONS540, RCONS541.
RCONH309, RCONH310,
RCONHK00, RCONHK01,
RCONS542, RCONS543,
RCONS544, RCONS545,
RCONS546, RCONS547,
RCONS548.
RCONS549, RCONS550,
RCONS551, RCONS552,
RCONS554, RCONS555,
RCONS556, RCONS557.
RCONH191, RCONH193,
RCONH194, RCONH195,
RCONK196, RCONH197,
RCONH198, RCONH199,
RCONH200.
RCONG630, RCONG631,
RCONG632, RCONG633,
RCONS558, RCONS559,
RCONS560, RCONS561,
RCONS563, RCONS564,
RCONS565, RCONS566,
RCONS567, RCONS568.
RCONG634, RCONG635,
RCONG636, RCONG637,
RCONS569, RCONS570,
RCONS571, RCONS572,
RCONS574, RCONS575,
RCONS576, RCONS577,
RCONS578, RCONS579.
RCONG642.
RCONS582, RCONS583,
RCONS584.
RCONS585, RCONS586,
RCONS587.
RCONS588, RCONS589,
RCONS590.
RCONS591, RCONS592,
RCONS593.
RCONS594, RCONS595,
RCONS596.
RCONS597, RCONS598,
RCONS599.
RCONS600, RCONS601,
RCONS602.
RCONS603, RCONS604,
RCONS605.
19NOP2
58451
58452
Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules
Schedule
Item
Item name
RC–R, Part II .....
M.3.b ..............................................................
RC–R, Part II .....
M.3.c ...............................................................
RC–R, Part II .....
M.3.d ..............................................................
RC–R, Part II .....
M.3.e ..............................................................
RC–R, Part II .....
M.3.f ...............................................................
RC–R, Part II .....
M.3.g ..............................................................
Notional principal amounts of centrally cleared derivative contracts:
Foreign exchange rate and gold.
Notional principal amounts of centrally cleared derivative contracts:
Credit (investment grade reference
asset).
Notional principal amounts of centrally cleared derivative contracts:
Credit (non-investment grade reference asset).
Notional principal amounts of centrally cleared derivative contracts:
Equity.
Notional principal amounts of centrally cleared derivative contracts:
Precious metals (except gold).
Notional principal amounts of centrally cleared derivative contracts:
Other.
khammond on DSK30JT082PROD with PROPOSALS2
The following data items on Schedule RC–
T are currently collected on the FFIEC 051
quarterly for institutions with total fiduciary
assets greater than $250 million (as of the
preceding December 31) or with gross
fiduciary and related services income greater
than 10 percent of revenue (net interest
income plus noninterest income) for the
preceding calendar year.
The data items are proposed to be collected
semiannually in the June and December
reports only for institutions with total
MDRM No.(s)
Item
Item name
RC–T .................
4 .....................................................................
RC–T .................
5.a ..................................................................
RC–T .................
5.b ..................................................................
RC–T .................
5.c ...................................................................
RC–T .................
6 .....................................................................
RC–T .................
7 .....................................................................
RC–T .................
8 .....................................................................
RC–T .................
9 .....................................................................
RC–T .................
10 ...................................................................
RC–T .................
11 ...................................................................
RC–T .................
13 ...................................................................
RC–T .................
14 ...................................................................
RC–T .................
15.a ................................................................
RC–T .................
15.b ................................................................
RC–T .................
15.c .................................................................
Fiduciary and Related Assets: Personal trust and agency accounts.
Fiduciary and Related Assets: Employee benefit—defined contribution.
Fiduciary and Related Assets: Employee benefit—defined benefit.
Fiduciary and Related Assets: Other
employee benefit and retirementrelated accounts.
Fiduciary and Related Assets: Corporate trust and agency accounts.
Fiduciary and Related Assets: Investment management and investment
advisory agency accounts.
Fiduciary and Related Assets: Foundation and endowment trust and
agency accounts.
Fiduciary and Related Assets: Other
fiduciary accounts.
Fiduciary and Related Assets: Total
fiduciary accounts.
Fiduciary and Related Assets: Custody and safekeeping accounts.
Fiduciary and Related Assets: Individual Retirement Accounts, Health
Savings Accounts, and other similar accounts (included in items 5.c
and 11).
Fiduciary and Related Services Income: Personal trust and agency
accounts.
Fiduciary and Related Services Income: Employee benefit—defined
contribution.
Fiduciary and Related Services Income: Employee benefit—defined
benefit.
Fiduciary and Related Services Income: Other employee benefit and
retirement-related accounts.
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RCONS609, RCONS610,
RCONS611.
RCONS612, RCONS613,
RCONS614.
RCONS615, RCONS616,
RCONS617.
RCONS618, RCONS619,
RCONS620.
RCONS621, RCONS622,
RCONS623.
fiduciary assets greater than $250 million but
less than or equal to $1 billion (as of the
preceding December 31) that do not meet the
fiduciary income test for quarterly reporting.
Schedule
VerDate Sep<11>2014
RCONS606, RCONS607,
RCONS608.
E:\FR\FM\19NOP2.SGM
MDRM No.(s)
RCONB868, RCONB869,
RCONB870, RCONB871.
RCONB872, RCONB873,
RCONB874, RCONB875.
RCONB876, RCONB877,
RCONB878, RCONB879.
RCONB880, RCONB881,
RCONB882, RCONB883.
RCONB884, RCONB885,
RCONC001, RCONC002.
RCONB886, RCONB888,
RCONJ253, RCONJ254.
RCONJ255, RCONJ256, RCONJ257,
RCONJ258.
RCONB890, RCONB891,
RCONB892, RCONB893.
RCONB894, RCONB895,
RCONB896, RCONB897.
RCONB898, RCONB899.
RCONJ259, RCONJ260, RCONJ261,
RCONJ262.
RIADB904.
RIADB905.
RIADB906.
RIADB907.
19NOP2
58453
Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules
Schedule
Item
Item name
RC–T .................
16 ...................................................................
RC–T .................
17 ...................................................................
RC–T .................
18 ...................................................................
RC–T .................
19 ...................................................................
RC–T .................
20 ...................................................................
RC–T .................
21 ...................................................................
RC–T .................
22 ...................................................................
RC–T .................
M.3.a ..............................................................
RC–T .................
M.3.b ..............................................................
RC–T .................
M.3.c ...............................................................
RC–T .................
M.3.d ..............................................................
RC–T .................
M.3.e ..............................................................
RC–T .................
M.3.f ...............................................................
RC–T .................
M.3.g ..............................................................
RC–T .................
M.3.h ..............................................................
Fiduciary and Related Services Income: Corporate trust and agency
accounts.
Fiduciary and Related Services Income: Investment management
and investment advisory agency
accounts.
Fiduciary and Related Services Income: Foundation and endowment
trust and agency accounts.
Fiduciary and Related Services Income: Other fiduciary accounts.
Fiduciary and Related Services Income: Custody and safekeeping
accounts.
Fiduciary and Related Services Income: Other fiduciary and related
services income.
Fiduciary and Related Services Income: Total gross fiduciary and related services income.
Collective investment funds and common trust funds: Domestic equity.
Collective investment funds and common trust funds: International/Global equity.
Collective investment funds and common trust funds: Stock/Bond blend.
Collective investment funds and common trust funds: Taxable bond.
Collective investment funds and common trust funds: Municipal bond.
Collective investment funds and common trust funds: Short-term investments/Money market.
Collective investment funds and common trust funds: Specialty/Other.
Collective investment funds and common trust funds: Total collective investment funds.
Appendix B: Data Items To Be Collected
From Institutions With $1 Billion or More in
Total Assets on the FFIEC 051.
The following data item is currently
collected on the FFIEC 041 from institutions
Item
Item name
RC–O .................
M.2 .................................................................
Estimated amount of uninsured deposits, including related interest accrued and unpaid.
Schedule
RI–C *
RI–C *
RI–C *
RI–C *
RI–C *
RI–C *
RI–C *
.................
.................
.................
.................
.................
.................
.................
VerDate Sep<11>2014
reported on the FFIEC 051 by institutions
with $1 billion or more in total assets with
a reduction in the frequency of collection.
RIADJ316.
RIADA480.
RIADB909.
RIADB910.
RIAD4070.
RCONB931, RCONB932.
RCONB933, RCONB934.
RCONB935, RCONB936.
RCONB937, RCONB938.
RCONB939, RCONB940.
RCONB941, RCONB942.
RCONB943, RCONB944.
RCONB945, RCONB946.
1.a ..................................................................
1.b ..................................................................
1.c ...................................................................
2 .....................................................................
3 .....................................................................
4 .....................................................................
5 .....................................................................
Construction loans .............................
Commercial real estate loans ............
Residential real estate loans .............
Commercial loans ..............................
Credit cards ........................................
Other consumer loans .......................
Unallocated, if any .............................
PO 00000
Frm 00023
Fmt 4701
Sfmt 4702
RCON5597.
Semiannual Reporting (June and December
only)
Item name
Jkt 247001
RIADJ315.
MDRM No.
Item
17:32 Nov 16, 2018
RIADA479.
with $1 billion or more in total assets. The
data item is proposed to be reported quarterly
by institutions with $1 billion or more in
total assets on the FFIEC 051.
Schedule
The following data items are currently
collected quarterly on the FFIEC 041 from
institutions with $1 billion or more in total
assets. The data items are proposed to be
khammond on DSK30JT082PROD with PROPOSALS2
MDRM No.(s)
E:\FR\FM\19NOP2.SGM
MDRM No.(s)
TBD
TBD
TBD
TBD
TBD
TBD
TBD
(2
(2
(2
(2
(2
(2
(1
19NOP2
New
New
New
New
New
New
New
MDRM
MDRM
MDRM
MDRM
MDRM
MDRM
MDRM
Numbers)
Numbers)
Numbers)
Numbers)
Numbers)
Numbers)
Number)
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Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules
Schedule
Item
Item name
MDRM No.(s)
RI–C * .................
6 .....................................................................
Total ...................................................
TBD (2 New MDRM Numbers)
* The FFIEC 041 Schedule RI–C collects disaggregated data on the allowance for loan and lease losses by loan category and the related recorded investment based on whether the reported allowance relates to loans that are individually impaired, purchased credit-impaired, or collectively evaluated for impairment in six columns. The proposed Schedule RI–C for the FFIEC 051 will consolidate the disaggregated data into two
columns: ‘‘Recorded Investment’’ (column A) and ‘‘Allowance Balance’’ (column B).
Effective June 30, 2021, the column captions would be changed to ‘‘Amortized Cost’’ (column A) and ‘‘Allowance for Credit Losses’’ (ACL)
(column B). From June 30, 2019, through December 31, 2020, institutions that have adopted Accounting Standards Update No. 2016–13, ‘‘Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments’’ (ASU 2016–13) would report the amortized cost and related ACL by loan category in columns A and B, respectively. From June 30, 2021, through December 31, 2022, institutions
that have not adopted ASU 2016–13 would report the recorded investment and related allowance balance by loan category in columns A and B,
respectively.
khammond on DSK30JT082PROD with PROPOSALS2
Annual Reporting (December only)
Schedule
Item
Item name
MDRM No.(s)
RI ** ....................
M.15.a ............................................................
RI ** ....................
M.15.b ............................................................
RI ** ....................
M.15.c .............................................................
RI ** ....................
M.15.d ............................................................
RC–E ** ..............
M.6.a ..............................................................
RC–E ** ..............
M.6.b ..............................................................
RC–E ** ..............
M.7.a.(1) .........................................................
RC–E ** ..............
M.7.a.(2) .........................................................
RC–E ** ..............
M.7.b.(1) .........................................................
RC–E ** ..............
M.7.b.(2) .........................................................
Consumer overdraft-related service
charges levied on those transaction account and nontransaction
savings account deposit products
intended primarily for individuals for
personal, household, or family use.
Consumer account periodic maintenance charges levied on those
transaction account and nontransaction savings account deposit
products intended primarily for individuals for personal, household, or
family use.
Consumer customer automated teller
machine (ATM) fees levied on
those transaction account and nontransaction savings account deposit products intended primarily
for individuals for personal, household, or family use.
All other service charges on deposit
accounts.
Total deposits in those noninterestbearing transaction account deposit products intended primarily
for individuals for personal, household, or family use.
Total deposits in those interest-bearing transaction account deposit
products intended primarily for individuals for personal, household, or
family use.
Total deposits in those MMDA deposit products intended primarily
for individuals for personal, household, or family use.
Deposits in all other MMDAs of individuals, partnerships, and corporations.
Total deposits in those other savings
deposit account deposit products
intended primarily for individuals for
personal, household, or family use.
Deposits in all other savings deposit
accounts of individuals, partnerships, and corporations.
RIADH032.
RIADH033.
RIADH034.
RIADH035.
RCONP753.
RCONP754.
RCONP756.
RCONP757.
RCONP758.
RCONP759.
** Items are to be completed by institutions with $1 billion or more in total assets that answered ‘‘Yes’’ to Schedule RC–E, Memorandum item
5.
The following data items are currently
being proposed to be collected quarterly on
the FFIEC 041 by those institutions with $1
billion or more in total assets that have
adopted ASU 2016–13.53
For this proposal, the data items are
proposed to be reported on the FFIEC 051 by
53 See
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institutions with $1 billion or more in total
assets that have adopted ASU 2016–13 with
a reduction in the frequency of collection.
Semiannual Reporting (June and December
only)
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Schedule
Item
Item name
RI–C ...................
7 .....................................................................
RI–C ...................
8.a ..................................................................
RI–C ...................
8.b ..................................................................
RI–C ...................
9 .....................................................................
RI–C ...................
10 ...................................................................
RI–C ...................
11 ...................................................................
Held-to-Maturity: Securities issued by
states and political subdivisions in
the U.S..
Held-to-Maturity: Mortgage-backed
securities issued or guaranteed by
U.S. Government agencies or
sponsored agencies.
Held-to-Maturity: Other mortgagebacked securities.
Held-to-Maturity: Asset-backed securities and structured financial products.
Held-to-Maturity: Other debt securities.
Held-to-Maturity: Total .......................
List of Subjects
12 CFR Part 52
Banks, banking, Reporting and
recordkeeping requirements.
12 CFR Part 208
Accounting, Agriculture, Banks,
banking, Confidential business
information, Consumer protection,
Currency, Insurance, Investments,
Mortgages, Reporting and recordkeeping
requirements, Securities
12 CFR Part 304
Bank deposit insurance, Banks,
banking, Freedom of information,
Reporting and recordkeeping
requirements.
Office of the Comptroller of the
Currency
For the reasons set out in the joint
preamble, the OCC proposes to add 12
CFR part 52 as follows:
■
PART 52—REGULATORY REPORTING
Sec.
52.1 Authority and purpose.
§ 52.2 Definitions.
§ 52.3 Reduced reporting.
§ 52.4 Reservation of authority.
Authority: 12 U.S.C. 93a, 161, 1463(a),
1464(v), and 1817(a)(12).
khammond on DSK30JT082PROD with PROPOSALS2
§ 52.1
Authority and purpose.
(a) Authority. This part is issued
pursuant to 12 U.S.C. 93a, 161, 1463(a),
1464(v), and 1817(a)(12).
(b) Purpose. This part establishes a
reduced reporting requirement for a
covered depository institution making
its reports of condition for the first and
third calendar quarters of a year.
§ 52.2
Definitions.
Covered depository institution means:
A national bank, Federal savings
association, or insured Federal branch
that meets the following criteria:
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(1) Has less than $5 billion in total
consolidated assets as reported in its
report of condition for the second
calendar quarter of the preceding year;
(2) Has no foreign offices, as defined
in this subpart;
(3) Is not required to or has not
elected to use 12 CFR part 3, subpart E
(for advanced approaches banks) to
calculate its risk-based capital
requirements;
(4) Is not a large institution or highly
complex institution, as such terms are
defined in 12 CFR 327.8, or treated as
a large institution, as requested under
12 CFR 327.16(f); and
(5) Is not subject to the filing
requirements for the FFIEC 002 report of
condition.
Foreign country refers to one or more
foreign nations, and includes the
overseas territories, dependencies, and
insular possessions of those nations and
of the United States.
Foreign office means:
(1) A branch or consolidated
subsidiary in a foreign country, unless
the branch is located on a U.S. military
facility;
(2) An international banking facility
as such term is defined in 12 CFR 204.8;
(3) A majority-owned Edge Act or
Agreement subsidiary as defined in 12
CFR 28.2, including both its U.S. and its
foreign offices; and
(4) For an institution chartered or
headquartered in any U.S. state or the
District of Columbia, a branch or
consolidated subsidiary located in a
U.S. territory or possession.
Report of condition means the FFIEC
031, FFIEC 041, or FFIEC 051 versions
of the Consolidated Report of Condition
and Income (Call Report) or the FFIEC
002 (Report of Assets and Liabilities of
U.S. Branches and Agencies of Foreign
Banks), as applicable, and as they may
be amended or superseded from time to
time in accordance with the Paperwork
Reduction Act of 1995, 44 U.S.C.
chapter 35.
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58455
MDRM No.(s)
TBD (1 New MDRM Number).
TBD (1 New MDRM Number).
TBD (1 New MDRM Number).
TBD (1 New MDRM Number).
TBD (1 New MDRM Number).
TBD (1 New MDRM Number).
Total consolidated assets means total
assets as reported in an institution’s
report of condition.
§ 52.3
Reduced reporting.
A covered depository institution may
file the FFIEC 051 version of the Call
Report, or any successor thereto, to
satisfy its requirement to file a report of
condition for the first and third calendar
quarters of a year.
§ 52.4
Reservation of authority.
The OCC may determine that a
covered depository institution shall not
use the reduced reporting in § 52.3. In
making this determination, the OCC will
consider whether the institution is
significantly engaged in complex,
specialized, or higher risk activities, for
which a reduced reporting requirement
would not provide sufficient
information. The institution has 30 days
following notification from the OCC to
inform the OCC, in writing, of why it
should continue to be eligible to use
reduced reporting or cannot cease using
reduced reporting in the OCC’s
proposed timeframe. The OCC will
make a final decision after reviewing
any response. Nothing in this part shall
be construed to limit the OCC’s
authority to obtain information from a
covered depository institution.
FEDERAL RESERVE SYSTEM
Authority and Issuance
For the reasons set forth in the joint
preamble, the Board proposes to amend
12 CFR part 208 as follows:
PART 208—MEMBERSHIP OF STATE
BANKING INSTITUTIONS IN THE
FEDERAL RESERVE SYSTEM
(REGULATION H)
1. The authority citation of part 208 is
amended to read as follows:
■
Authority: 12 U.S.C. 24, 36, 92a, 93a,
248(a), 248(c), 321–338a, 371d, 461, 481–486,
601, 611, 1814, 1816, 1817(a)(3), 1817(a)(12),
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1818, 1820(d)(9), 1833(j), 1828(o), 1831,
1831o, 1831p–1, 1831r–1, 1831w, 1831x,
1835a, 1882, 2901–2907, 3105, 3310, 3331–
3351, 3905–3909, and 5371; 15 U.S.C. 78b,
78I(b), 78l(i), 780–4(c)(5), 78q, 78q–1, and
78w, 1681s, 1681w, 6801, and 6805; 31
U.S.C. 5318; 42 U.S.C. 4012a, 4104a, 4104b,
4106 and 4128.
2. Add new subpart K to part 208 to
read as follows:
■
Subpart K—Forms, Instructions and
Reports
Sec.
§ 208.120 Authority, Purpose, and Scope
§ 208.121 Definitions
§ 208.122 Reporting
§ 208.123 Reduced Reporting
§ 208.124 Reservation of Authority
Subpart K—Forms, Instructions and
Reports
§ 208.120
Authority, Purpose, and Scope
(a) Authority. Subpart K of Regulation
H (12 CFR part 208, subpart K) is issued
by the Board under section 7 of the
Federal Deposit Insurance Act, 12
U.S.C. 1817(a)(3) and (12), and section
9 of the Federal Reserve Act, 12 U.S.C.
324.
(b) Purpose and scope. This subpart
informs a state member bank where it
may obtain forms and instructions for
reports of conditions and implements 12
U.S.C. 1817(a)(12) to allow reduced
reporting for a covered depository
institution when such institution makes
its reports of condition for the first and
third calendar quarters of a year.
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§ 208.121
Definitions
Covered depository institution means:
a state member bank that meets all of
the following criteria:
(1) Has less than $5 billion in total
consolidated assets as reported in its
report of condition for the second
calendar quarter of the preceding year;
(2) Has no foreign offices, as defined
in this subpart;
(3) Is not required to or has not
elected to use 12 CFR part 217, subpart
E to calculate its risk-based capital
requirements; and
(4) Is not a large institution or highly
complex institution, as such terms are
defined in 12 CFR 327.8, or treated as
a large institution, as requested under
12 CFR 327.16(f).
Foreign country refers to one or more
foreign nations, and includes the
overseas territories, dependencies, and
insular possessions of those nations and
of the United States.
Foreign office means:
(1) A branch or consolidated
subsidiary in a foreign country, unless
the branch is located on a U.S. military
facility;
(2) An international banking facility
as such term is defined in 12 CFR 204.8;
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Jkt 247001
(3) A majority-owned Edge Act or
Agreement subsidiary including both its
U.S. and its foreign offices; and
(4) For an institution chartered or
headquartered in any U.S. state or the
District of Columbia, a branch or
consolidated subsidiary located in a
U.S. territory or possession.
Report of condition means the FFIEC
031, FFIEC 041, or FFIEC 051 versions
of the Consolidated Report of Condition
and Income (Call Report) or the FFIEC
002 (Report of Assets and Liabilities of
U.S. Branches and Agencies of Foreign
Banks), as applicable, and as they may
be amended or superseded from time to
time in accordance with the Paperwork
Reduction Act of 1995, 44 U.S.C.
chapter 35.
Total consolidated assets means total
assets as reported in a state member
bank’s report of condition.
§ 208.122
Reporting
(a) A state member bank is required to
file the report of condition (Call Report)
in accordance with the instructions for
these reports. All assets and liabilities,
including contingent assets and
liabilities, must be reported in, or
otherwise taken into account in the
preparation of, the Call Report. The
Board uses Call Report data to monitor
the condition, performance, and risk
profile of individual state member banks
and the banking industry. Reporting
state member banks must also submit
annually such information on small
business and small farm lending as the
Board may need to assess the
availability of credit to these sectors of
the economy. The report forms and
instructions can be obtained from
Federal Reserve District Banks or
through the website of the Federal
Financial Institutions Examination
Council, https://www.ffiec.gov/.
(b) Every insured U.S. branch of a
foreign bank is required to file the
FFIEC 002 version of the report of
condition (Report of Assets and
Liabilities of U.S. Branches and
Agencies of Foreign Banks) in
accordance with the instructions for the
report. All assets and liabilities,
including contingent assets and
liabilities, must be reported in, or
otherwise taken into account in the
preparation of the report. The Board
uses the reported data to monitor the
condition, performance, and risk profile
of individual insured branches and the
banking industry. Insured branches
must also submit annually such
information on small business and small
farm lending as the Board may need to
assess the availability of credit to these
sectors of the economy. The report
forms and instructions can be obtained
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from Federal Reserve District Banks or
through the website of the Federal
Financial Institutions Examination
Council, https://www.ffiec.gov/.
§ 208.123
Reduced Reporting
A covered depository institution may
file the FFIEC 051 version of the report
of condition, or any successor thereto,
which shall provide for reduced
reporting for the reports of condition for
the first and third calendar quarters for
a year.
§ 208.124
Reservation of Authority
(a) Notwithstanding § 208.123, the
Board in consultation with the
applicable state chartering authority
may require an otherwise eligible
covered depository institution to file the
FFIEC 041 version of the report of
condition, or any successor thereto,
based on an institution-specific
determination. In making this
determination, the Board may consider
criteria including, but not limited to,
whether the institution is significantly
engaged in one or more complex,
specialized, or other higher risk
activities, such as those for which
limited information is reported in the
FFIEC 051 version of the report of
condition compared to the FFIEC 041
version of the report of condition.
Nothing in this part shall be construed
to limit the Board’s authority to obtain
information from a state member bank.
(b) Nothing in this subpart limits the
authority of the Board under any other
provision of law or regulation to take
supervisory or enforcement action,
including action to address unsafe or
unsound practices or conditions or
violations of law.
Federal Deposit Insurance Corporation
12 CFR CHAPTER III
Authority and Issuance
For the reasons set forth in the
preamble, the Federal Deposit Insurance
Corporation proposes to amend 12 CFR
part 304 to read as follows:
■
PART 304—FORMS, INSTRUCTIONS,
AND REPORTS
Contents
Subpart A—In General
§ 304.1 Purpose.
§ 304.2 Where to obtain forms and
instructions.
§ 304.3 Reports.
§ 304.4–304.10 [Reserved].
Subpart B—Implementation of Reduced
Reporting Requirement
§ 304.11 Authority, purpose and scope.
§ 304.12 Definitions.
§ 304.13 Reduced reporting.
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§ 304.14
Reservation of authority.
Authority: 5 U.S.C. 552; 12 U.S.C. 1464,
1817, 1831, 1867.
Subpart A—In General
§ 304.1
Purpose.
Part 304 informs the public where it
may obtain forms and instructions for
reports, applications, and other
submittals used by the FDIC, and also
describes certain forms that are not
described elsewhere in FDIC
regulations.
§ 304.2 Where to obtain forms and
instructions.
Forms and instructions used in
connection with applications, reports,
and other submittals used by the FDIC
can be obtained by contacting the FDIC
Public Information Center (550 17th
Street NW, Washington, DC 20429;
telephone: (877) 275–3342 or (703) 562–
2200), except as noted below in § 304.3.
In addition, many forms and
instructions can be obtained from FDIC
regional offices. A list of FDIC regional
offices can be obtained from the FDIC
Public Information Center, or found at
the FDIC’s website at https://
www.fdic.gov, or in the directory of
FDIC Law, Regulations, Related Acts
published by the FDIC.
khammond on DSK30JT082PROD with PROPOSALS2
§ 304.3
Reports.
(a) Consolidated Reports of Condition
and Income, Forms FFIEC 031, 041, and
051. Pursuant to section 7(a) of the
Federal Deposit Insurance Act (12
U.S.C. 1817(a)) and other applicable
law, every insured depository
institution is required to file
Consolidated Reports of Condition and
Income (also known as the Call Report)
in accordance with the instructions for
these reports. All assets and liabilities,
including contingent assets and
liabilities, must be reported in, or
otherwise taken into account in the
preparation of, the Call Report. The
FDIC uses Call Report data from all
insured depository institutions to
calculate deposit insurance assessments
and monitor the condition,
performance, and risk profile of
individual banks and the banking
industry. Reporting banks must also
submit annually such information on
small business and small farm lending
as the FDIC may need to assess the
availability of credit to these sectors of
the economy. The report forms and
instructions can be obtained from the
Division of Insurance and Research
(DIR), FDIC, 550 17th Street NW,
Washington, DC 20429 or through the
website of the Federal Financial
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17:32 Nov 16, 2018
Jkt 247001
Institutions Examination Council,
https://www.ffiec.gov/.
(Approved by the Office of Management
and Budget under control number
3064–0052)
(b) Report of Assets and Liabilities of
U.S. Branches and Agencies of Foreign
Banks, Form FFIEC 002. Pursuant to
section 7(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(a)) and
other applicable law, every insured U.S.
branch of a foreign bank is required to
file a Report of Assets and Liabilities of
U.S. Branches and Agencies of Foreign
Banks in accordance with the
instructions for the report. All assets
and liabilities, including contingent
assets and liabilities, must be reported
in, or otherwise taken into account in
the preparation of the report. The FDIC
uses the reported data to calculate
deposit insurance assessments and
monitor the condition, performance,
and risk profile of individual insured
branches and the banking industry.
Insured branches must also submit
annually such information on small
business and small farm lending as the
FDIC may need to assess the availability
of credit to these sectors of the
economy. Because the Board of
Governors of the Federal Reserve
System collects and processes this
report on behalf of the FDIC, the report
forms and instructions can be obtained
from Federal Reserve District Banks or
through the website of the Federal
Financial Institutions Examination
Council, https://www.ffiec.gov/.
(Approved by the Office of Management and
Budget under control number 7100–0032)
(c) Summary of Deposits, Form FDIC
8020/05. Form 8020/05 is a report on
the amount of deposits for each
authorized office of an insured
depository institution with branches;
institutions with only a main office are
exempt from reporting. Reports as of
June 30 of each year must be submitted
no later than the immediately
succeeding July 31. The report forms
and the instructions for completing the
reports will be furnished to all such
banks by, or may be obtained upon
request from, the Division of Insurance
and Research (DIR), FDIC, 550 17th
Street NW, Washington, DC 20429.
(Approved by the Office of Management and
Budget under control number 3064–0061)
(d) Notification of Performance of
Bank Services, Form FDIC 6120/06.
Pursuant to Section 7 of the Bank
Service Company Act (12 U.S.C. 1867),
as amended, FDIC-supervised banks
must notify the agency about the
existence of a service relationship
within thirty days after the making of
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58457
the contract or the performance of the
service, whichever occurs first. Form
FDIC 6120/06 may be used to satisfy the
notice requirement. The form contains
identification, location and contact
information for the bank, the servicer,
and a description of the services
provided. In lieu of the form,
notification may be provided by letter.
Either the form or the letter containing
the notice information must be
submitted to the regional director—
Division of Risk Management
Supervision (RMS) of the region in
which the bank’s main office is located.
(Approved by the Office of Management and
Budget under control number 3064–0029)
Subpart B—Implementation of
Reduced Reporting Requirement
Authority: 12 U.S.C. 1464(v), 1817(a), and
1819 Tenth.
§ 304.11
Authority, purpose, and scope.
(a) Authority. This subpart is issued
pursuant to 12 U.S.C. 1464(v), and
sections 7 (12 U.S.C. 1817(a)(12)) and
section 9 (12 U.S.C. 1819 Tenth) of the
Federal Deposit Insurance Act.
(b) Purpose. This subpart implements
12 U.S.C. 1817(a)(12) to allow reduced
reporting for a covered depository
institution when such institution makes
its reports of condition for the first and
third calendar quarters of a year.
(c) Scope. This subpart applies to an
insured depository institution, as that
term is defined in section 3(c) of the
Federal Deposit Insurance Act, 12
U.S.C. 1813(c), that meets the definition
of a covered depository institution
under section 304.12.
(d) Preservation of authority. Nothing
in this subpart in any way limits the
authority of the Corporation under other
provisions of applicable law and
regulation.
§ 304.12
Definitions.
(a) Covered depository institution
means an insured depository institution,
as such term is defined in section 3 of
the Federal Deposit Insurance Act, 12
U.S.C. 1813, for which the Corporation
is the appropriate Federal banking
agency and that meets all of the
following criteria:
(1) Has less than $5 billion in total
consolidated assets as reported in its
report of condition for the second
calendar quarter of the preceding year;
(2) Has no foreign offices, as defined
in this subpart;
(3) Is not required to or has not
elected to use 12 CFR part 324, subpart
E to calculate its risk-based capital
requirements;
(4) Is not a large institution or highly
complex institution, as such terms are
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khammond on DSK30JT082PROD with PROPOSALS2
defined in 12 CFR 327.8, or treated as
a large institution, as requested under
12 CFR 327.16(f); and
(5) Is not a state-licensed insured
branch of a foreign bank, as such terms
are defined in section 3(s) of the Federal
Deposit Insurance Act, 12 U.S.C.
1813(s).
(b) Foreign country refers to one or
more foreign nations, and includes the
overseas territories, dependencies, and
insular possessions of those nations and
of the United States.
(c) Foreign office means:
(1) A branch or consolidated
subsidiary in a foreign country, unless
the branch is located on a U.S. military
facility;
(2) An international banking facility
as such term is defined in 12 CFR 204.8;
(3) A majority-owned Edge Act or
Agreement subsidiary including both its
U.S. and its foreign offices; and
(4) For an institution chartered or
headquartered in any U.S. state or the
District of Columbia, a branch or
consolidated subsidiary located in a
U.S. territory or possession.
(d) Report of condition means the
FFIEC 031, FFIEC 041, or FFIEC 051
versions of the Consolidated Report of
Condition and Income (Call Report) or
the FFIEC 002 (Report of Assets and
VerDate Sep<11>2014
17:32 Nov 16, 2018
Jkt 247001
Liabilities of U.S. Branches and
Agencies of Foreign Banks), as
applicable, and as they may be amended
or superseded from time to time in
accordance with the Paperwork
Reduction Act of 1995, 44 U.S.C.
chapter 35.
(e) Total consolidated assets means
total assets as reported in an insured
depository institution’s report of
condition.
§ 304.13
Reduced reporting.
A covered depository institution may
file the FFIEC 051 version of the report
of condition, or any successor thereto,
which shall provide for reduced
reporting for the reports of condition for
the first and third calendar quarters for
a year.
§ 304.14
Reservation of authority.
Notwithstanding § 304.13, the
Corporation, in consultation with the
applicable state chartering authority,
may require an otherwise eligible
covered depository institution to file the
FFIEC 041 version of the report of
condition, or any successor thereto,
based on an institution-specific
determination. In making this
determination, the Corporation may
consider criteria including, but not
PO 00000
Frm 00028
Fmt 4701
Sfmt 9990
limited to, whether the institution is
significantly engaged in one or more
complex, specialized, or other higherrisk activities, such as those for which
limited information is reported in the
FFIEC 051 version of the report of
condition compared to the FFIEC 041
version of the report of condition.
Nothing in this part shall be construed
to limit the Corporation’s authority to
obtain information from insured
depository institutions.
Dated: November 5, 2018.
Joseph M. Otting,
Comptroller of the Currency.
By order of the Board of Governors of the
Federal Reserve System, October 30, 2018.
Ann E. Misback,
Secretary of the Board.
Dated at Washington, DC, on October 17,
2018.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018–24587 Filed 11–16–18; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
E:\FR\FM\19NOP2.SGM
19NOP2
]]>Agencies
[Federal Register Volume 83, Number 223 (Monday, November 19, 2018)]
[Proposed Rules]
[Pages 58432-58458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24587]
[[Page 58431]]
Vol. 83
Monday,
No. 223
November 19, 2018
Part III
Department of Treasury
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Office of the Comptroller of the Currency
Federal Reserve System
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Federal Deposit Insurance Corporation
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12 CFR Parts 52, 208, and 304
Reduced Reporting for Covered Depository Institutions; Proposed Rule
Federal Register / Vol. 83 , No. 223 / Monday, November 19, 2018 /
Proposed Rules
[[Page 58432]]
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DEPARTMENT OF TREASURY
Office of the Comptroller of the Currency
12 CFR Part 52
[Docket ID OCC-2018-0032]
RIN 1557-AE39
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FEDERAL RESERVE SYSTEM
12 CFR Part 208
[Docket ID R-1618]
RIN 7100-AF12
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 304
RIN 3065-AE82
Reduced Reporting for Covered Depository Institutions
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: Notice of proposed rulemaking with request for public comment.
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SUMMARY: The OCC, the Board, and the FDIC (collectively, the agencies)
are inviting comment on a proposed rule that would implement section
205 of the Economic Growth, Regulatory Relief, and Consumer Protection
Act by: Expanding the eligibility to file the agencies' most
streamlined report of condition, the FFIEC 051 Call Report, to include
certain insured depository institutions with less than $5 billion in
total consolidated assets that meet other criteria; and, establishing
reduced reporting on the FFIEC 051 Call Report for the first and third
reports of condition for a year. The OCC and Board also are proposing
similar reduced reporting for certain uninsured institutions that they
supervise with less than $5 billion in total consolidated assets that
otherwise meet the same criteria. This Federal Register notice also
includes a Paperwork Reduction Act notice to reduce the amount of data
required to be reported on the FFIEC 051 Call Report for the first and
third calendar quarters, and other related changes.
DATES: Comments must be received by January 18, 2019.
ADDRESSES: Comments should be directed to:
OCC: You may submit comments to the OCC by any of the methods set
forth below. Commenters are encouraged to submit comments through the
Federal eRulemaking Portal or email, if possible. Please use the title
``Reduced Reporting for Covered Depository Institutions'' to facilitate
the organization and distribution of the comments. You may submit
comments by any of the following methods:
Federal eRulemaking Portal--``Regulations.gov'': Go to
www.regulations.gov. Enter ``Docket ID OCC-2018-0032'' in the Search
Box and click ``Search.'' Click on ``Comment Now'' to submit public
comments.
Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov, including instructions for
submitting public comments.
Email: [email protected].
Mail: Legislative and Regulatory Activities Division,
Office of the Comptroller of the Currency, 400 7th Street SW, Suite 3E-
218, Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Instructions: You must include ``OCC'' as the agency name and
``Docket ID OCC-2018-0032'' in your comment.
In general, the OCC will enter all comments received into the
docket and publish the comments on the Regulations.gov website 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.
You may review comments and other related materials that pertain to
this rulemaking action by any of the following methods:
Viewing Comments Electronically: Go to
www.regulations.gov. Enter ``Docket ID OCC-2018-0032'' in the Search
box and click ``Search.'' Click on ``Open Docket Folder'' on the right
side of the screen. Comments and supporting materials can be viewed and
filtered by clicking on ``View all documents and comments in this
docket'' and then using the filtering tools on the left side of the
screen.
Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov. The docket may be viewed
after the close of the comment period in the same manner as during the
comment period.
Viewing Comments Personally: You may personally inspect
comments at the OCC, 400 7th Street SW, Washington, DC 20219. 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: When submitting comments, please consider submitting your
comments by email or fax because paper mail in the Washington, DC area
and at the Board may be subject to delay.
You may submit comments, identified by Docket No. R-1618 and RIN
7100-AF12, by any of the following methods:
Agency Website: https://www.federalreserve.gov. Follow the
instructions for submitting comments at https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Email: [email protected]. Include docket
and RIN numbers 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 will be made available on the Board's website
at https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical reasons or to remove
personally identifiable information at the commenter's request.
Accordingly, comments will not be edited to remove any identifying or
contact information. Public comments may also be viewed electronically
or in paper in Room 3515, 1801 K Street NW (between 18th and 19th
Streets NW), between 9:00 a.m. and 5:00 p.m. on weekdays.
FDIC: You may submit comments, identified by FDIC RIN 3064-AE82, by
any of the following methods:
Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the Agency
website.
Mail: Robert E. Feldman, Executive Secretary, Attention:
Comments/Legal ESS, Federal Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
Hand Delivery/Courier: Comments may be hand-delivered to
the guard
[[Page 58433]]
station at the rear of the 550 17th Street NW building (located on F
Street) on business days between 7:00 a.m. and 5:00 p.m.
Email: [email protected]. Comments submitted must include
``FDIC'' and ``RIN 3064-AE82'' on the subject line of the message.
Public Inspection: All comments received must include
``FDIC'' and ``RIN 3064-AE82'' for this rulemaking. 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 ordered from the FDIC Public
Information Center, 3501 North Fairfax Drive, Room E-1002, Arlington,
VA 22226, or by telephone at (877) 275-3342 or (703) 562-2200.
FOR FURTHER INFORMATION CONTACT:
OCC: Cady Codding, Senior Policy Accountant, Office of the Chief
Accountant, (202) 649-5764; Kevin Korzeniewski, Counsel, Office of the
Chief Counsel, (202) 649-5490; or for persons who are deaf or hearing
impaired, TTY, (202) 649-5597.
Board: Douglas Carpenter, Senior Supervisory Financial Analyst,
Division of Supervision and Regulation, (202) 452-2205; Claudia Von
Pervieux, Senior Counsel, (202) 452-2552, or Laura Bain, Senior
Attorney, (202) 736-5546, Legal Division, Board of Governors of the
Federal Reserve System, 20th and C Streets NW, Washington, DC 20551.
For the hearing impaired only, Telecommunication Device for the Deaf
(TDD), (202) 263-4869, Board of Governors of the Federal Reserve
System, 20th Street and Constitution Avenue NW, Washington, DC 20551.
FDIC: Robert Storch, Chief Accountant, Division of Risk Management
Supervision, (202) 898-8906, [email protected]; or Nefretete Smith,
Counsel, Legal Division, (202) 898-6851, [email protected]; or Kathryn
Marks, Counsel, Legal Division, (202) 898-3896, [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Summary of Proposed Rule
B. Background
II. Description of the Proposed Rule
III. Expected Impact of the Proposed Rule
IV. Alternatives Considered
V. Related Agency-Specific Revisions
VI. Regulatory Analyses
A. Paperwork Reduction Act
B. Regulatory Flexibility Act
C. Plain Language
D. Riegle Community Development and Regulatory Improvement Act
of 1994
E. OCC Unfunded Mandates Reform Act of 1995
Appendix A: Proposed Changes in Frequency of Collection for the
FFIEC 051
Appendix B: Data Items To Be Collected From Institutions With Total
Assets Greater Than $1 Billion on the FFIEC 051
I. Introduction
A. Summary of Proposed Rule
The Office of the Comptroller of the Currency (OCC), the Board of
Governors of the Federal Reserve System (Board), and the Federal
Deposit Insurance Corporation (FDIC) (collectively, the agencies) are
inviting comment on this notice of proposed rulemaking (proposed rule)
that would implement reduced reporting on the Consolidated Reports of
Condition and Income (Call Report) \1\ for eligible small insured
depository institutions, consistent with section 205 of the Economic
Growth, Regulatory Relief, and Consumer Protection Act of 2018
(EGRRCPA).\2\ The OCC and Board also are proposing to implement reduced
reporting for eligible uninsured institutions. The proposed rule would
expand the number of institutions that may file the FFIEC 051 Call
Report, the most streamlined version of the Call Report, and would
provide for reduced reporting in the FFIEC 051 Call Report. Through the
included Paperwork Reduction Act (PRA) notice, the agencies are
proposing to reduce the amount of data required to be reported on the
FFIEC 051 Call Report for the first and third calendar quarters.
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\1\ The ``Call Report'' is the report of condition and income
for most insured depository institutions. There currently are three
versions of the Call Reports: The Consolidated Reports of Condition
and Income for a Bank with Domestic and Foreign Offices (FFIEC 031),
the Consolidated Report 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).
\2\ Public Law 115-174, 132 Stat. 1296 (2018).
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The proposed reduced reporting would be available to smaller, non-
complex institutions, with domestic offices only, that meet the
definition of ``covered depository institution.'' That term generally
is defined in the proposed rule to mean an institution that has less
than $5 billion in total consolidated assets, has no foreign offices,
is not required to or has not elected to use Subpart E (Internal
Ratings-Based and Advanced Measurement Approaches) of the agencies'
regulatory capital rules to calculate its risk-based capital
requirements, and is not a large or highly complex institution for
purposes of the FDIC's assessment regulations.
The proposed rule would provide for reduced reporting by allowing
covered depository institutions to file the FFIEC 051 Call Report, with
fewer data items required in the reports for the first and third
calendar quarters. For covered depository institutions, the principal
areas of reduced reporting in the first and third calendar quarters
generally would include data items related to categories of risk-
weighting of various types of assets and other exposures under the
agencies' regulatory capital rules, fiduciary and related services
assets and income, and troubled debt restructurings by loan category.
In addition, covered depository institutions that previously were
ineligible to file the FFIEC 051 Call Report (i.e., those with total
assets of $1 billion or more) would benefit from the FFIEC 051 Call
Report's less detailed quarterly reporting as compared to other
versions of the Call Report.\3\
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\3\ As compared with other versions of the Call Report, the
FFIEC 051 Call Report requires less detailed reporting for data
items related to trading, mortgage banking, and securitization
activities, as well as less detail for other lending and derivatives
activities.
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B. Background
In their statutory roles of chartering, licensing, supervising, or
insuring institutions,\4\ the agencies principally rely on information
obtained through on-site examinations of institutions, off-site
supervisory activities between examinations, and information reported
on an institution's report of condition. The report of condition is the
Call Report for most insured depository institutions.\5\ Call Reports
provide the most current financial and statistical data available for
identifying areas of focus for supervision and for on-site and off-site
examinations. The agencies use Call Report data in monitoring the
condition, performance, and risk profile of individual institutions and
the industry as a whole. Call Report data assist the agencies in their
collective missions of promoting the safety and soundness of
institutions and the financial system and the protection of consumer
financial rights, as well as fulfilling agency-specific missions, such
as conducting monetary policy, promoting financial stability, and
[[Page 58434]]
administering federal deposit insurance. The agencies also use Call
Report data in evaluating institutions' applications, including
interstate merger and acquisition applications. In addition, Call
Report data are used by the appropriate agencies to calculate
institutions' deposit insurance assessments as well as national banks'
and federal savings associations' semiannual assessment fees.
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\4\ The OCC charters and supervises national banks and Federal
savings associations, and licenses and supervises Federal branches
and agencies of foreign banks; the Board supervises state member
banks; the FDIC supervises state nonmember banks, state savings
associations and state-licensed insured branches, and insures the
deposits of all insured depository institutions.
\5\ In addition, U.S. branches and agencies of foreign banks
file the Report of Assets and Liabilities of U.S. Branches and
Agencies of Foreign Banks (FFIEC 002).
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The agencies recognize that institutions devote staffing and
resources in order to complete and file Call Reports. In December 2014,
the Federal Financial Institutions Examination Council (FFIEC), which
is responsible for developing uniform reporting systems (including the
Call Reports) for federally supervised financial institutions,\6\
started an initiative to reduce the reporting burden on small
institutions. The FFIEC members developed the following guiding
principles to evaluate potential additions and deletions of Call Report
data items and other revisions to the Call Reports: (1) Data items
serve a long-term regulatory or public policy purpose by assisting the
FFIEC members in fulfilling their missions; (2) data items to be
collected maximize practical utility and minimize, to the extent
practicable and appropriate, burden on financial institutions; and (3)
equivalent data items are not readily available through other means.
---------------------------------------------------------------------------
\6\ See 12 U.S.C. 3305(c). The agencies are members of the
FFIEC. The term ``financial institution'' in this context means a
commercial bank, savings bank, trust company, savings association,
building and loan association, homestead association, cooperative
bank, or credit union. 12 U.S.C. 3302(3).
---------------------------------------------------------------------------
As part of the FFIEC's Call Report burden-reduction initiative,
FFIEC members conducted outreach with community banks and industry
representatives to better understand what aspects of the Call Report
process are significant sources of reporting burden for financial
institutions; accelerated the statutorily mandated review of the Call
Report; \7\ and evaluated the feasibility and merits of creating a more
streamlined Call Report for eligible small institutions.\8\ Based on
the response from community banks, trade associations, and public
comments, as well as survey results of FFIEC member Call Report data
users, in August 2016, the agencies invited public comment on a
proposed streamlined version of the Call Report, the FFIEC 051 Call
Report.\9\
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\7\ See 12 U.S.C. 1817(a)(11). The agencies are statutorily
mandated to conduct a review of the information and schedules in the
Call Reports every five years, and reduce or eliminate any
information or schedules for which the agencies determine continued
collection is not required by law and no longer necessary or
appropriate. https://www.ffiec.gov/pdf/2017_Interagency_Review_Consolidated_Reports_Condition_Income.pdf.
\8\ The FFIEC published a series of Federal Register notices
pursuant to the Paperwork Reduction Act of 1995. See 80 FR 56539
(September 18, 2015) (principles); 81 FR 45357 (July 13, 2016)
(burden reduction); 82 FR 2444 (January 9, 2017) (burden reduction
and implementation of FFIEC 051); 83 FR 939 (January 8, 2018)
(burden reduction); 83 FR 15678 (April 11, 2018) (burden reduction).
\9\ 81 FR 54190 (August 15, 2016).
---------------------------------------------------------------------------
The FFIEC 051 Call Report first took effect as of March 31, 2017,
and contained approximately 40 percent fewer data items than were
included in the FFIEC 041 Call Report, which is the Call Report filed
by institutions that have $1 billion or more in total assets, only have
domestic offices, and are not branches of foreign banks. In addition,
the initial FFIEC 051 Call Report collected approximately 4 percent of
data items less frequently than the FFIEC 041 Call Report in effect at
that time.
In June and November 2017, the agencies proposed further reductions
to the FFIEC 051 Call Report based on public comments and additional
feedback from Call Report data users from the FFIEC members.\10\ The
agencies also reviewed suggestions for streamlining the Call Reports
provided in comment letters submitted during the public notice and
comment period for the agencies' review of regulations required by the
Economic Growth and Regulatory Paperwork Reduction Act.\11\ As a result
of the further reductions that took effect as of the June 30, 2018,
report date, the FFIEC 051 Call Report represents a reduction of
approximately 43 percent of the data items and provides for reduced
reporting frequency of approximately 6 percent of the data items, as
compared to the FFIEC 041 Call Report in use immediately before the
implementation of the FFIEC 051 Call Report. Currently, only
institutions that have less than $1 billion in total assets, have only
domestic offices, are not branches of foreign banks, and are not
required or have not elected to use Subpart E of the agencies'
regulatory capital rules (applicable to advanced approaches
institutions) to calculate their risk-based capital requirements \12\
may use the FFIEC 051 Call Report.
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\10\ See 82 FR 29147 (June 27, 2017), 82 FR 51908 (November 8,
2017). These Federal Register notices also contained proposals to
reduce data items in the FFIEC 031 and FFIEC 041 Call Reports.
\11\ See 12 U.S.C. 3311.
\12\ See 12 CFR part 3, subpart E (OCC); 12 CFR part 217,
subpart E (Board); 12 CFR part 324, subpart E (FDIC). Generally, an
institution is an advanced approaches institution if it has
consolidated assets of at least $250 billion or if it has
consolidated on-balance sheet foreign exposures of at least $10
billion, or if it is a subsidiary of a depository institution, bank
holding company, savings and loan holding company, or intermediate
holding company that is an advanced approaches banking organization.
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II. Description of the Proposed Rule
Section 205 of EGRRCPA amended section 7(a) of the Federal Deposit
Insurance Act (FDI Act) and requires the agencies to issue regulations
that allow for a reduced reporting requirement for a covered depository
institution when the institution makes the first and third report of
condition for a calendar year. Section 205 of EGRRCPA defines ``covered
depository institution'' as an insured depository institution ``that--
(i) has less than $5 billion in total consolidated assets; and (ii)
satisfies such other criteria as the [agencies] determine
appropriate.'' \13\
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\13\ 12 U.S.C. 1817(a)(12)(B).
---------------------------------------------------------------------------
The proposed rule would implement section 205 of EGRRCPA by
expanding the number of insured depository institutions eligible to
file the FFIEC 051 Call Report and establishing the reduced reporting
in the FFIEC 051 Call Report permissible for such institutions for the
first and third reports of condition for a year.\14\ The OCC and Board
also are proposing to establish reduced reporting for certain uninsured
institutions under their supervision that meet the proposed criteria.
---------------------------------------------------------------------------
\14\ Under the proposed rule, ``report of condition'' means the
FFIEC 031, FFIEC 041, or FFIEC 051 versions of the Consolidated
Reports of Condition and Income (Call Report) or the FFIEC 002
report (Report of Assets and Liabilities of U.S. Branches and
Agencies of Foreign Banks), as applicable, and as they may be
amended or superseded from time to time in accordance with the
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
---------------------------------------------------------------------------
As discussed below, the agencies propose to implement reduced
reporting by expanding the scope of institutions permitted to file the
FFIEC 051 Call Report every quarter through the definition of ``covered
depository institution.'' As noted, the FFIEC 051 Call Report is the
most streamlined version of the Call Report and is familiar to
institutions and their Call Report service providers and, therefore
could be readily used by covered depository institutions for reduced
reporting in the first and third calendar quarters.\15\ In particular,
because the FFIEC 051 Call
[[Page 58435]]
Report uses the same definitions for data items as other Call Report
versions, as well as the same data item identifiers used by the Call
Report preparation software products, the agencies anticipate that
newly eligible covered depository institutions would be able to file
the FFIEC 051 Call Report without the need to make significant changes
to their Call Report preparation processes or incur significant
cost.\16\ Finally, as discussed below in the PRA section, to implement
section 205 of EGRRCPA the agencies are proposing to reduce the number
of existing FFIEC 051 Call Report data items required to be reported in
the first and third calendar quarters by approximately 37 percent.
Accordingly, for all covered depository institutions, filing the FFIEC
051 Call Report would provide an immediate reduction in required
reporting without substantial administrative costs.
---------------------------------------------------------------------------
\15\ Based on June 30, 2018, Call Report data, of the 5,357
institutions with reported total assets below the statutory $5
billion asset threshold, 4,810 or almost 90 percent of those
institutions reported less than $1 billion in total assets and are
currently eligible to file the FFIEC 051 Call Report based on asset
size. Approximately 77 percent of the 4,810 institutions with total
assets below $1 billion already file the FFIEC 051 Call Report, and
thus would face little to no administrative costs to obtain reduced
reporting for the first and third calendar quarters of a year.
\16\ Based on June 30, 2018 Call Report data, 547 institutions
that reported total assets of $1 billion or more, but less than $5
billion, could be eligible to file the FFIEC 051 Call Report in 2019
under the proposed rule.
---------------------------------------------------------------------------
The agencies expect to propose additional reductions to the FFIEC
051 Call Report in connection with the implementation of section 201 of
EGRRCPA. Section 201 of EGRRCPA requires the agencies to adopt a
community bank leverage ratio in place of the existing regulatory
capital rules for qualifying community banks,\17\ which the agencies
expect would lead to a reduction in the number of regulatory capital
data items that would need to be reported by such institutions. The
agencies also will continue to review the data collected on the FFIEC
051 Call Report and seek to reduce the reporting frequency of data
items from quarterly to semi-annual where practicable.
---------------------------------------------------------------------------
\17\ A qualifying community bank is defined as a depository
institution or depository holding company with total consolidated
assets of less than $10 billion and a risk profile deemed
appropriate by the agencies. Under section 201, the agencies may
determine whether a community bank qualifies based on consideration
of certain risk factors.
---------------------------------------------------------------------------
A. Covered Depository Institution
Section 205 of EGRRCPA defines ``covered depository institution''
as an insured depository institution ``that-- (i) has less than $5
billion in total consolidated assets; and (ii) satisfies such other
criteria as the [agencies] determine appropriate.'' \18\ The proposed
rule would define ``covered depository institution'' as an institution
that meets all the following criteria: Has less than $5 billion in
total consolidated assets as reported in its report of condition for
the second calendar quarter of the preceding calendar year; has no
foreign offices; is not required to or has not elected to use Subpart E
of the agencies' regulatory capital rules to calculate its risk-based
capital requirements; and is not a large or highly complex institution
for purposes of the FDIC's assessment regulations. The OCC's definition
would also scope out institutions that file the FFIEC 002 report of
condition. In addition, the FDIC's definition would exclude state-
licensed insured branches of foreign banks. These other non-asset-size
criteria are identical to the current eligibility criteria for
institutions with less than $1 billion in total assets to file the
FFIEC 051 Call Report except for the criterion related to whether the
institution is large or highly complex under the FDIC's assessment
regulations.
---------------------------------------------------------------------------
\18\ 12 U.S.C. 1817(a)(12)(B).
---------------------------------------------------------------------------
The agencies would allow reduced reporting for ``insured depository
institutions'', as such term is defined in section 3 of the FDI Act, 12
U.S.C. 1813, and as required by section 205 of EGRRCPA. The OCC and
Board also would extend reduced reporting to certain uninsured
institutions that they supervise and that would otherwise meet the same
criteria.\19\ Greater parity in the reporting of insured and uninsured
national banks and state member banks would be appropriate in light of
the similarities between the information used to review the activities
of such insured and uninsured institutions. In addition, some uninsured
institutions with total assets of less than $1 billion currently file
the FFIEC 051 Call Report and, therefore, may continue to use this
version of the Call Report under the proposed rule.
---------------------------------------------------------------------------
\19\ The FDIC only supervises insured state nonmember banks,
insured state savings associations, and insured state-licensed
branches. Currently, no uninsured Board-regulated institution is
eligible to file the FFIEC 051 Call Report, but under the proposal
one uninsured Board-regulated institution would meet the proposed
criteria for eligibility to file the FFIEC 051 Call Report. The OCC
supervises 49 uninsured institutions that currently are eligible to
file the FFIEC 051 Call Report, which would increase to 50 under the
proposed rule.
---------------------------------------------------------------------------
Asset Threshold
The proposed rule would define ``total consolidated assets'' as
total assets as reported in an institution's report of condition. An
institution would determine whether it meets the asset-size criterion
and is eligible to file the FFIEC 051 Call Report based on the total
assets it reported in its report of condition (Schedule RC, Item 12 in
the Call Reports), which is calculated on a consolidated basis, in the
institution's report of condition for the second calendar quarter of
the previous calendar year. This approach is consistent with the
current FFIEC 051 Call Report instructions for determining eligibility
to file the FFIEC 051 Call Report based on asset size.\20\
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\20\ See FFIEC 051 instructions, available at https://www.ffiec.gov/pdf/FFIEC_forms/FFIEC051_201806_i.pdf.
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This approach should allow an institution sufficient time to
address any accounting or reporting systems changes or other
preparation process changes that may be needed if the institution wants
to take advantage of, or is no longer eligible for, filing the FFIEC
051 Call Report with its reduced reporting in the following calendar
year. For example, an institution that meets the asset-size criterion
based on its report of condition as of June 30, 2018, may be eligible
to file the FFIEC 051 Call Report for the entire 2019 calendar year,
even if its assets increase to $5 billion or more later in 2018 or
2019, provided it also continues to meet the non-asset-size criteria
discussed below. If the same institution reports $5 billion or more in
total assets on its Call Report as of June 30, 2019, the institution
could continue to file the FFIEC 051 Call Report for report dates
through December 31, 2019 (based on its total assets as of June 30,
2018), including reduced reporting in the third calendar quarter of
2019 as long as it continued to meet the non-asset-size criteria.
However, because the institution exceeded the asset-size criterion as
of June 30, 2019, the institution would be ineligible to file the FFIEC
051 Call Report in the 2020 calendar year.
Question 1: What are the advantages and disadvantages of
institutions measuring total assets using the approach discussed above?
Should the agencies use average total assets over a specified period
rather than total assets on a single reporting date? Is another
methodology more appropriate to measure total assets for purposes of
the asset-size criterion? If so, what methodology is more appropriate
and why?
Question 2: The agencies are not proposing to immediately
disqualify an institution from using reduced reporting if it exceeds $5
billion in total assets, regardless of how the institution crossed the
asset threshold, including through a merger or acquisition. Is this
appropriate and why?
Other Eligibility Criteria
The agencies are also proposing that an institution satisfy other
criteria to be eligible for reduced reporting, consistent with section
205. These other criteria are based on an institution's
[[Page 58436]]
international activities, its treatment under the agencies' regulatory
capital rules, and its treatment under the FDIC's deposit insurance
assessment regulations. These non-asset-size criteria are identical to
the current eligibility criteria for institutions with less than $1
billion in total assets to file the FFIEC 051 Call Report with the
exception of the criterion related to treatment under the FDIC's
assessment regulations. Unlike the asset-size criterion, which is
determined as of the report of condition filed for the second calendar
quarter (as of June 30) of the prior calendar year, an institution
would determine in each calendar quarter whether it meets all of these
non-asset-size criteria. If in any calendar quarter an institution no
longer meets all of these other criteria, then the institution would
become ineligible to file the FFIEC 051 Call Report beginning the
quarter in which the institution failed to meet one of the non-asset-
size criteria. In contrast to failing the asset-size criterion, failing
to meet the non-asset-size criteria often reflects a significant change
in the operations of an institution as a result of deliberate planning,
such as opening a foreign branch or becoming subject to a different
approach under the agencies' regulatory capital rules. Therefore, in
contrast to the asset-size criterion, the proposed rule does not
include a grace period for non-asset-size criteria.
International Activities. The proposal would exclude from the
definition of ``covered depository institution'' an institution that
has foreign offices or that is an insured branch of a foreign bank.
These criteria are identical to the current eligibility criteria that
exclude these institutions from being eligible to file the FFIEC 051
Call Report. Foreign offices would be defined as: Branches or
consolidated subsidiaries in foreign countries \21\ unless located on a
U.S. military facility; international banking facilities as defined
under 12 CFR 204.8; majority-owned Edge Act and Agreement \22\
subsidiaries; and branches or consolidated subsidiaries in U.S.
territories if the bank is chartered or headquartered in a U.S. state
or the District of Columbia. Insured branches of foreign banks would be
those branches defined in section 3(s) of the FDI Act, 12 U.S.C.
1813(s), which file the FFIEC 002 version of the report of condition.
The agencies believe it is appropriate to exclude these institutions
from the proposal because the nature of these international activities
requires more comprehensive and detailed financial information to
effectively supervise and monitor them.\23\ This comprehensive
information related to foreign activities is required to be reported in
the FFIEC 002 report of condition. For example, institutions that have
foreign offices may present risks, such as currency risk and country-
specific risks, for which supervisors require additional financial
information to ensure appropriate monitoring and supervision.
Permitting these institutions to receive reduced reporting on the FFIEC
051 Call Report would impair the agencies' existing supervision of
these institutions.
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\21\ The proposed rule would define ``foreign country'' to refer
to one or more foreign nations, and include the overseas
territories, dependencies, and insular possessions of those nations
and of the United States. This definition also is used in the
Board's Regulation K, 12 CFR part 211.
\22\ 12 CFR 211.1(c)(2) and (3).
\23\ Depository institutions with foreign offices are currently
required to file the FFIEC 031 Call Report and thus are not
currently eligible to file the FFIEC 051. Branches of foreign banks
(both Federally and State-licensed), are required to file the FFIEC
002 version of the report of condition.
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Advanced Approaches Institutions. The proposal would exclude from
the definition of ``covered depository institution'' an institution
that is required to, or has elected to, use Subpart E of the agencies'
regulatory capital rules to calculate its risk-based capital
requirements (advanced approaches institution). In general, an advanced
approaches institution is an institution that has consolidated total
assets equal to $250 billion or more, has consolidated total on-balance
sheet foreign exposure equal to $10 billion or more, or is a subsidiary
of a depository institution or holding company that uses the advanced
approaches to calculate its total-risk weighted assets.\24\ Advanced
approaches institutions currently are precluded from filing the FFIEC
051 Call Report. Advanced approaches institutions generally must
calculate their regulatory capital requirements under the advanced
approaches, which relies in part on internal models and complex
formulas, and are subject to additional requirements such as the
supplementary leverage ratio.\25\ While advanced approaches holding
companies typically have total assets of more than $250 billion, their
depository institution subsidiaries also generally are subject to the
advanced approaches, some of which may have total assets of less than
$5 billion. Some of these subsidiaries often engage in specialized or
highly complex activities that require more comprehensive and detailed
financial information to ensure effective supervision and monitoring.
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\24\ See 12 CFR 3.100(b) (OCC); 217.100(b) (Board); 324.100(b)
(FDIC).
\25\ See 12 CFR part 3, subpart E and 12 CFR 3.10(c)(4) (OCC);
12 CFR part 217, subpart E and 12 CFR 217.10(c)(4) (Board); 12 CFR
part 324, subpart E and 12 CFR 324.10(c)(4) (FDIC).
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Institutions Assessed as Large or Highly Complex by the FDIC.
Finally, the agencies propose to exclude from the definition of
``covered depository institution'' an insured depository institution
that is assessed as a ``large institution'' or ``highly complex
institution,'' as defined in the FDIC's deposit insurance assessment
regulations.\26\
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\26\ See 12 CFR 327.8(e), (f), (g) and (s). For the purposes of
the FDIC's assessment regulations, a ``small institution'' generally
is an insured depository institution with less than $10 billion in
total assets. Generally, a ``large institution'' is an insured
depository institution with more than $10 billion in total assets or
that is treated as a large institution for assessment purposes under
section 327.16(f). Generally, a ``highly complex institution'' is:
(i) An insured depository institution (excluding a credit card bank)
that has had $50 billion or more in total assets for at least four
consecutive quarters, is controlled by a U.S. parent holding company
that has had $500 billion or more in total assets for four
consecutive quarters, or is controlled by one or more intermediate
U.S. parent holding companies that are controlled by a U.S. holding
company that has had $500 billion or more in assets for four
consecutive quarters; or (ii) a processing bank or trust company.
However, an institution with assets between $5 billion and $10
billion may request treatment for deposit insurance assessments as a
large institution, and few institutions have made this request to
date. See 12 CFR 327.16(f).
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Under the FDIC's assessment regulations, large and highly complex
institutions are assessed using combined CAMELS \27\ ratings and
certain forward-looking financial measures to assess the risks such
institutions pose to the Deposit Insurance Fund.\28\ The FDIC uses the
data reported by a large or highly complex institution on either the
FFIEC 031 or FFIEC 041 Call Report, as appropriate, to calculate the
institution's assessment rate. For example, the FDIC uses data on
Schedule RC-O regarding higher-risk assets, which are not reported on
the FFIEC 051 Call Report, to calculate financial ratios used to
determine a large or highly complex institution's assessment rate.
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\27\ A financial institution is assigned a ``CAMELS'' composite
rating based on an evaluation and rating of six essential components
of an institution's financial condition and operations. These
component factors address the: Adequacy of capital (C); quality of
assets (A); capability of management (M); quality and level of
earnings (E); adequacy of liquidity (L); and sensitivity to market
risk (S).
\28\ See 12 CFR 327.16(b) and (c); 76 FR 10672, 10688-10698
(February 25, 2011).
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Under the FDIC's assessments regulations, an institution that
increases or decreases in asset size is reclassified as a small
institution, large institution, or highly complex institution generally
after such institution reports assets of less than $10 billion, $10
billion or more, or more than $50 billion,
[[Page 58437]]
respectively, for four consecutive quarters.\29\ Because
reclassification requires that the institution report above or below a
certain asset-based threshold for four consecutive quarters, there may
be a period of time in which an institution would otherwise be eligible
for reduced reporting by filing the FFIEC 051 Call Report because it
met the asset-size criterion, but is assessed as a large or highly
complex institution. Although this situation is likely to be rare,
without this criterion such institution would be eligible to file the
FFIEC 051 Call Report with its reduced reporting under the proposed
rule. For example, an institution that had been reporting more than $10
billion in assets and was assessed as a ``large institution'' as of
March 31, 2018, could decrease in size such that its total assets, as
of June 30, 2018, were below $5 billion. If that institution met the
other non-asset-size criteria discussed above, then that institution
could be eligible to file the FFIEC 051 Call Report in the 2019
calendar year, including reduced reporting in the first and third
calendar quarters of 2019. However, such an institution would continue
to be assessed as a large institution and would not be reclassified as
a ``small institution'' for deposit insurance assessments until it
reported total assets below $10 billion for four consecutive quarters.
Therefore, as long as the institution continues to be assessed as a
``large institution,'' it would be ineligible to file the FFIEC 051
Call Report, including its reduced reporting, until it was reclassified
for deposit insurance assessments and assessed as a ``small
institution'' (i.e., beginning with the third calendar quarter in
2019).
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\29\ Under the FDIC's assessment regulations, an insured
depository institution can be reclassified as a highly complex
institution because they meet the definition of a ``processing bank
or trust company.'' Under that definition, an insured depository
institution would need to, among other things, have total assets of
$10 billion or more for at least four consecutive quarters. See 12
CFR 327.8(s).
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This proposed eligibility criterion ensures that an institution
that meets the asset-size criterion based on its report of condition
for the second calendar quarter of a previous year, but is treated as a
large or highly complex institution for assessment purposes, will
continue to file the FFIEC 031 or FFIEC 041 Call Report, as
appropriate, which contain the data items required by the FDIC to
calculate the institution's assessment rate.
Question 3: Do the other criteria proposed by the agencies set an
appropriate scope for institutions eligible for reduced reporting? Are
there additional institutions or classes of institutions meeting the
asset-size criterion that the agencies should consider making eligible
to use reduced reporting and, if so, why? Are there additional
institutions or classes of institutions that the agencies should
consider making ineligible for reduced reporting and, if so, why?
B. Reduced Reporting
The agencies propose to implement the reduced reporting required by
section 205 of EGRRCPA by first allowing the broader group of covered
depository institutions to file the FFIEC 051 Call Report each calendar
quarter. The proposed rule would extend eligibility to file the FFIEC
051 Call Report to all covered depository institutions with $1 billion
or more, but less than $5 billion, in total assets and that meet the
non-asset-size criteria. As discussed in the PRA section below, the
agencies propose revising the eligibility criteria for filing the FFIEC
051 Call Report to match the criteria to qualify as a covered
depository institution under the proposal. As a result, this approach
would provide significant relief through reduced reporting to covered
depository institutions that currently are required to file the FFIEC
041 Call Report. For example, the current version of the FFIEC 051 Call
Report includes 1,147 reportable data items in each of the first and
third calendar quarters, compared with 2,029 reportable data items
required on the FFIEC 041 Call Report in those calendar quarters, which
is the version of the Call Report currently completed by most
institutions with total assets of $1 billion or more, but less than $5
billion. Under the proposal, covered depository institutions with total
assets between $1 billion and less than $5 billion would be eligible to
file the FFIEC 051 Call Report in each calendar quarter of a calendar
year (provided that they continue to meet the non-asset-size
eligibility criteria), which would provide substantial reporting relief
for these institutions compared to the FFIEC 041 Call Report currently
used by most of those institutions.
In addition to expanding the number of institutions eligible to
file the FFIEC 051 Call Report, the agencies propose to implement the
reduced reporting required by section 205 of EGRRCPA by further
reducing the reporting required on the FFIEC 051 Call Report for all
covered depository institutions in the first and third calendar
quarters. The agencies propose to achieve this by reducing the
frequency of reporting in the FFIEC 051 Call Report for approximately
37 percent of the existing data items in this report--from quarterly to
semiannual--as described in the PRA section below. The principal areas
of reduced reporting in the first and third quarters include data items
related to categories of risk-weighting of various types of assets and
other exposures under the agencies' regulatory capital rules, fiduciary
and related services assets and income, and troubled debt
restructurings by loan category. This reduction in frequency for
certain data items would provide all covered depository institutions,
including those with less than $1 billion in total assets that
currently file the FFIEC 051 Call Report, with further reduced
reporting in the first and third calendar quarters.
Question 4: Is the agencies' proposal to implement reduced
reporting by expanding eligibility to file the FFIEC 051 Call Report
appropriate? If not, what would be a more appropriate way to implement
Section 205's reduced reporting requirement, and why?
C. Reservation of Authority
The proposed rule includes a reservation of authority that would
allow the appropriate Federal banking agency, in consultation with the
applicable state chartering authority, and on an institution-specific
basis, to require a covered depository institution to file the FFIEC
041 Call Report, or any successor thereto, in any calendar quarter or
quarters in which the covered depository institution would otherwise be
eligible to file the FFIEC 051 Call Report, based on the appropriate
Federal banking agency's determination that such filing is necessary
for supervisory purposes. In making such a determination, the
appropriate Federal banking agency may consider criteria including
whether the institution is significantly engaged in one or more
complex, specialized, or other higher-risk activities, such as those
for which limited information is reported in the FFIEC 051 Call Report
compared to the FFIEC 041 Call Report. For example, if a covered
depository institution has a considerable concentration of either
trading assets or mortgage banking activities, the appropriate Federal
banking agency may seek additional information from that institution by
requiring the institution to file the FFIEC 041 Call Report. Generally,
a covered depository institution's safety and soundness, size,
complexity, activities, risk profile, and other factors, such as an
increase in a covered depository institution's asset size resulting
from a merger or acquisition, also may be taken into consideration.
If, after considering such factors, the appropriate Federal banking
agency determines that the covered depository institution should be
required to file the
[[Page 58438]]
FFIEC 041 Call Report, the appropriate Federal banking agency would
provide written notice to the covered depository institution prior to
the filing requirement's becoming effective. Any covered depository
institution eligible to file the FFIEC 051 Call Report, but that is
required by its appropriate Federal banking agency to file the FFIEC
041 Call Report under the reservation of authority, would be required
to continue to file the FFIEC 041 Call Report until the appropriate
Federal banking agency provides written notice to the covered
depository institution that it is no longer required to file the FFIEC
041 Call Report. The justification for use of the reservation and its
terms will also be provided in the notice.
This authority would provide the agencies with the flexibility to
require an institution to report and disclose additional Call Report
data if warranted by an institution's individual circumstances and risk
profile. Consistent with current supervisory practices and experience,
the exercise of the reservation of authority generally would be a
decision made by a member of the appropriate agency's senior management
and would not be at the discretion of examination staff.
III. Expected Impact of the Proposed Rule
The proposed rule is expected to broaden the number of institutions
that may file the FFIEC 051 Call Report and be eligible for reduced
reporting in the first and third calendar quarters.\30\ Based on June
30, 2018, Call Report data, 5,357 institutions reported total assets of
less than $5 billion. Of these, 547 institutions reported total assets
of $1 billion or more, but less than $5 billion, and are currently
ineligible to file the FFIEC 051 Call Report in 2019, but would meet
the definition of ``covered depository institution'' under the proposed
rule. For 533 of these 547 institutions, this would mark the first time
such institution is eligible to file the FFIEC 051 Call Report.\31\
Overall, each of the 5,357 institutions that reported less than $5
billion in total assets in their Call Report as of June 30, 2018, and
that would qualify as a ``covered depository institution'' under the
proposed rule, could file the FFIEC 051 Call Report and report
approximately 37 percent fewer data items in the first and third
calendar quarters than in the current FFIEC 051 Call Report.
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\30\ The proposed rule allows reduced reporting for covered
depository institutions, but does not mandate that any institution
file the FFIEC 051 Call Report. Based on June 30, 2018, Call Report
data, approximately 77 percent of currently eligible institutions
that reported total assets of less than $1 billion elected to file
the FFIEC 051 Call Report.
\31\ Fourteen institutions currently file the FFIEC 051 Call
Report, but reported assets of $1 billion or more, but less than $5
billion on their Call Report as of June 30, 2018. Under the current
Call Report instructions, these institutions would not be eligible
to file the FFIEC 051 Call Report in 2019. However, under the
proposed rule, these institutions would meet the definition of
``covered depository institution'' and, therefore, could continue to
file the FFIEC 051 Call Report in 2019 (assuming they continue to
meet the non-asset-size criteria).
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The agencies estimate the average quarterly reporting burden hours
per institution for the current FFIEC 041 and FFIEC 051 Call Reports
are 64.49 hours and 52.31 hours, respectively, for institutions that
would become eligible to file the FFIEC 051 Call Report in 2019. Thus,
each covered depository institution that switches from filing the
current FFIEC 041 Call Report to the FFIEC 051 Call Report (amended as
proposed in the PRA section) is expected to save, on average, 12.18
hours per quarter. Assuming that newly eligible covered depository
institutions would file the FFIEC 051 Call Report at the same rate as
currently eligible institutions file the FFIEC 051 Call Report (77
percent), the agencies estimate a total reporting burden reduction of
5,130 hours per quarter for these institutions.\32\
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\32\ Calculated as 12.18 burden hours multiplied by 77 percent
of 547 institutions that would be eligible under the proposed rule.
Covered depository institutions could file the FFIEC 051 Call Report
at a higher rate than the current 77 percent participation level,
particularly due to the opportunity under the proposed rule to
obtain additional reporting relief in the first and third calendar
quarters.
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The proposed rule also provides for reduced reporting in the first
and third calendar quarters for covered depository institutions. As
discussed below in the PRA section, the agencies are proposing to
remove approximately 37 percent of data items from being reported in
the FFIEC 051 Call Report for covered depository institutions in the
first and third calendar quarters. The principal areas of reduced
reporting in the first and third calendar quarters include data items
related to categories of risk-weighting of various types of assets and
other exposures under the agencies' regulatory capital rules, fiduciary
and related service assets and income, and troubled debt restructurings
by loan category. These data items are currently collected every
calendar quarter on the FFIEC 051 Call Report. Every covered depository
institution that files the FFIEC 051 Call Report would experience a
reduction in reporting for the first and third calendar quarters as a
result of this aspect of the proposed rule. The agencies estimate that
the proposed removal of approximately 37 percent of data items from the
reporting requirements of covered depository institutions in the first
and third calendar quarters would reduce the average quarterly
reporting burden by 1.18 hours for the 3,714 institutions that filed
the FFIEC 051 Call Report for the June 30, 2018, report date. This
represents a total estimated burden reduction of 4,383 hours per
quarter for these institutions.\33\
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\33\ 1.18 hours * 3,714 FFIEC 051 Call Report filers for the
report dated June 30, 2018.
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As also discussed below in the PRA section, the agencies are
proposing to add certain data items to the FFIEC 051 Call Report for
covered depository institutions with $1 billion or more, but less than
$5 billion, in total assets. Based on Call Report data as of June 30,
2018, 533 institutions with $1 billion or more, but less than $5
billion, currently file the FFIEC 041 Call Report, but would meet the
definition of ``covered depository institution'' under the proposed
rule. Because these 533 institutions already report these data items on
the FFIEC 041 Call Report, the proposed addition of these data items to
the FFIEC 051 Call Report for these institutions would not represent an
increase in reporting burden as these institutions would experience an
overall net decrease in reporting burden by switching to the FFIEC 051
Call Report. Furthermore, only one of these items would be collected
quarterly; the other items would be collected semiannually or annually.
In addition, these data items would not be required to be completed by
institutions with less than $1 billion in total assets that file the
FFIEC 041 or FFIEC 051 Call Reports, so institutions that are currently
eligible to file the FFIEC 051 Call Report would not be affected by the
addition of these items.
Based on the agencies' total hourly wage rate for Call Report
preparation of $117 and the reduction in reporting hours resulting from
the proposed reduced reporting discussed in the PRA section, it is
estimated that reporting costs could be $600,210 less each quarter, on
average, for the 547 eligible institutions that reported $1 billion or
more, but less than $5 billion, in total assets on their June 30, 2018,
Call Report.\34\ Also, the agencies estimate that reporting costs could
be $512,811 less each quarter, on average, for the 3,714 institutions
that filed the FFIEC 051 Call Report for June 30, 2018.\35\ In sum, the
proposed changes to the FFIEC 051 Call Report that are discussed below
[[Page 58439]]
in the PRA section could reduce annual reporting costs by an estimated
$4,452,084, or 0.008 percent of total annualized non-interest expenses,
for institutions that reported total assets of less than $5 billion on
the Call Report as of the June 30, 2018, and either filed the FFIEC 051
Call Report, or filed the FFIEC 041 Call Report but are expected to
file the FFIEC 051 Call Report, under the proposed rule beginning in
2019.\36\
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\34\ $117 per hour * 5,130 hours per quarter.
\35\ $117 per hour * 4,383 hours per quarter.
\36\ $117 per hour * [5,130 hours per quarter + 4,383 hours per
quarter] * 4 quarters per year.
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Finally, the proposed rule could impose some minor additional
regulatory costs, in the first year of implementation, that are
associated with changes to internal systems or processes for affected
institutions that are not currently eligible for, or do not currently
file, the FFIEC 051 Call Report. The agencies expect that these
additional costs should be relatively low as the FFIEC 051 Call Report
shares defined terms and data item identifiers with the other Call
Reports, so institutions that switch to the FFIEC 051 Call Report
should not necessitate significant reporting system changes. However,
these costs are also difficult to estimate accurately with available
information because they depend upon the individual characteristics of
each institution, its recordkeeping and reporting systems, and the
decisions of its senior management.
Question 5: The agencies invite comments on all aspects of the
information provided in this Expected Impact section. In particular,
would this proposal have any significant effects on institutions that
the agencies have not identified?
Question 6: Are there other factors or aspects of regulatory
reporting that the agencies should consider in assessing the impact of
the proposed rule?
IV. Alternatives Considered
The agencies recognize that while the statutory mandate is to allow
for reduced reporting in the first and third calendar quarters for
covered depository institutions, the implementation of section 205 of
EGRRCPA presents an additional opportunity to provide broader
regulatory relief to smaller, less complex institutions that are
currently required to file the FFIEC 041 Call Report because they have
$1 billion or more in total assets. In developing the proposal, the
agencies sought to reduce the reporting burden on institutions with
total consolidated assets of less than $5 billion, consistent with the
mandate in section 205, while also ensuring that the agencies' data
needs for institutions in the size range would continue to be met.
The agencies considered two alternative approaches to implementing
section 205 as part of the development of the proposed rule. In
considering these alternatives, the agencies reviewed prior PRA notices
in which Call Report changes were discussed and comments were
addressed. Additionally, the agencies considered comments received on
the Call Report burden reduction initiative announced in December 2014
that resulted in the creation of the FFIEC 051 Call Report. The
agencies note that the FFIEC Call Report burden-reduction initiative
involved significant outreach to community banks and to users of Call
Report data and that the guiding principles developed as part of the
initiative informed the development of the approach taken in this
proposal.
Alternative 1: Identify data items for reduced reporting on the
FFIEC 041 and FFIEC 051 Call Reports. The agencies considered reviewing
the FFIEC 041 and FFIEC 051 Call Reports to identify data items that
could be reported on a less frequent basis by institutions with less
than $5 billion in total assets. A possible advantage to this approach
is that it might have been easier to present the various items proposed
for reduced reporting. However, the agencies also recognized that the
existing FFIEC 051 Call Report in its entirety already requires the
reporting of significantly fewer data items than the FFIEC 041 Call
Report. Therefore, expanding institutions' eligibility to file the
FFIEC 051 Call Report was determined to be the more beneficial approach
with respect to institutions with total assets of $1 billion or more,
but less than $5 billion, because it would provide those institutions
with immediate and significant reductions in the overall number of data
items reported. In addition, re-reviewing every data item on the FFIEC
041 Call Report would require significantly more time and would delay
the implementation of reduced reporting in comparison to proposing to
use the existing FFIEC 051 Call Report.
Alternative 2: Create a new, separate Call Report form for
``covered depository institutions.'' The agencies also considered
creating a new, separate Call Report for covered depository
institutions that would provide for reduced reporting in the first and
third calendar quarters. The agencies believed that, while such an
approach may appear simple to do, creating an entirely separate form
only two years after the implementation of the new FFIEC 051 Call
Report could lead to confusion about which form to file, especially
because the criteria for filing the form likely would have been very
similar to the current eligibility criteria for filing the FFIEC 051
Call Report. Also, this approach could result in institutions having to
reorganize their reporting systems and processes to accommodate their
use of a new form and incur costs and administrative burden in doing
so. Because the proposed rule is intended to reduce burden on smaller,
less complex institutions, the agencies determined that producing a new
Call Report would not be the most efficient option. Additionally, the
agencies recognized that they would require significant time to develop
and publish an entirely new Call Report form, which would delay the
regulatory reporting relief proposed in the rule.
V. Related Agency-Specific Revisions
A. Board
The Board does not currently have a rule that sets forth the report
of condition filing requirements of state-chartered banks that are
members of the Federal Reserve System (state member banks), and instead
relies on its statutory authority under section 9 of the Federal
Reserve Act (FRA) and section 7(a)(3) of the FDI Act to require state
member banks to provide reports of condition. In light of section 205
of EGRRCPA's requirement that the Board issue a rule that allows for
reduced reporting by certain eligible Board-supervised insured
depository institutions, the Board proposes to add a new subpart to
Regulation H, which governs the membership of state banking
institutions in the Federal Reserve System. The Board proposes to add
new subpart K to Regulation H, which will incorporate the rule text
implementing section 205. In addition to insured state member banks,
the Board also supervises uninsured state member banks, such as
nondepository trust companies. The Board requires such institutions to
use the Call Report to submit financial data. The Board's proposed rule
also would extend the use of the reduced reporting requirement to
uninsured state member banks if they meet the criteria for covered
depository institutions identified in the rule.
The Board also proposes to include in new subpart K, pursuant to
its statutory authority under section 9 of the FRA and section 7(a)(3)
of the FDI Act, subsection 208.122 that will set forth the general
requirement that all state member banks file consolidated reports of
condition and income in accordance with the instructions for these
reports.
Question 7: Is the proposed extension of the reduced reporting
requirement to
[[Page 58440]]
include uninsured state member banks that meet the same eligibility
criteria appropriate? Would any of the proposed exclusionary criteria
for covered depository institutions be problematic for uninsured state
member banks?
B. FDIC
The FDIC proposes to amend Part 304 of its Rules and Regulations,
by restructuring the regulation and creating a ``Subpart A'' and
``Subpart B.'' In Subpart A, the FDIC would put the current text of
Part 304, with limited technical, non-substantive changes. The
technical, non-substantive changes include: (1) Updating the address
and contact information in section 304.2; (2) clarifying that sections
304.3(a) and (b) apply to insured depository institutions; (3) updating
references in section 304.3(a) to the various Call Reports to include
the recently implemented FFIEC 051 Call Report; and (4) updating the
references to FDIC divisions to reflect changes in nomenclature. In
Subpart B, the FDIC proposes to include the regulatory text
implementing Section 205.
The FDIC believes that the proposed approach to restructuring Part
304 will incorporate the entirety of the new, substantive text of the
proposed rule that implements Section 205 of the EGRRCPA with minimal
effect to the current text. Thus, a state nonmember bank or state
savings association that believes it qualifies as a covered depository
institution would be able to make that determination based on the
regulatory text contained in Subpart B.
Question 8: Is the proposed restructuring of Part 304 helpful and
clear for users to understand? Why or why not?
C. OCC
Insured depository institutions identified in section 205 include
insured Federal branches of foreign banks, as defined under section
3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)). While
these insured Federal branches are included in the statute, they
currently file the FFIEC 002 report of condition. The FFIEC 002 is used
by insured and uninsured state and Federal branches and agencies of
foreign banks and contains a significant amount of information relating
to the operations and foreign connections of these entities. As
described above in the International Activities section, this
additional information is necessary for the OCC to supervise insured
Federal branches, and a reduced reporting option would not be
appropriate given the nature of their activities. Therefore, the OCC's
proposed rule would include a criterion excluding institutions that
file the FFIEC 002 report of condition from being eligible for reduced
reporting.
In addition to insured depository institutions, which are
specifically identified in section 205, the OCC also supervises a
number of uninsured national banks, such as trust banks. The OCC has
permitted some of these institutions to use the Call Report to submit
financial data and to use the existing FFIEC 051 if they meet the
current eligibility requirements for filing that Call Report.
Therefore, the OCC's proposed rule would also extend the use of the
reduced reporting requirement to uninsured national banks if they meet
the criteria for covered depository institutions identified in the
rule.
Question 9: Is the proposed extension of the reduced reporting
requirement to include uninsured national banks supervised by the OCC
appropriate? Would any of the proposed exclusionary criteria for
covered depository institutions be problematic for uninsured national
banks supervised by the OCC?
VI. Regulatory Analyses
A. Paperwork Reduction Act
Certain provisions of the proposed rule affect ``collections of
information'' within the meaning of the Paperwork Reduction Act of 1995
(PRA) (44 U.S.C. 3501-3521). In accordance with the requirements of the
PRA, 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.
The agencies reviewed the proposed rule, including the changes to
the FFIEC 051 Call Report that are discussed in this PRA section, and
determined that it would result in changes to certain reporting
requirements that have been previously cleared by the OMB under various
control numbers. The proposed rule would expand the eligibility to file
the FFIEC 051 Call Report to certain institutions with $1 billion or
more, but less than $5 billion, in total assets that meet other
eligibility criteria. In addition to the expanded eligibility to file
this report, the agencies also are proposing other revisions to the
FFIEC 051 Call Report, as discussed under Current Actions below. These
revisions to the FFIEC 051 Call Report are proposed to take effect as
of the March 31, 2019, report date. The agencies are proposing to
extend for three years, with revision, these information collections.
Current Actions
Overview
First, as described above, the agencies are proposing to revise the
criteria for determining whether an institution is eligible to file the
FFIEC 051 Call Report to match the criteria in the proposed rule. While
the proposed rule provides for reduced reporting on reports filed for
the first and third calendar quarters, the agencies also propose to
revise the eligibility criteria to extend to all eligible institutions
with less than $5 billion in total assets that meet other criteria in
the rule the option to file the FFIEC 051 Call Report for all four
calendar quarters. Therefore, if an institution is eligible to file the
FFIEC 051 Call Report for the first and third calendar quarters
pursuant to the rule, the institution also could file the FFIEC 051
Call Report for the second and fourth calendar quarters provided the
institution continues to meet the non-asset-size criteria. The
revisions to the filing eligibility would be made in the General
Instructions section of the Call Report instructions and would include
the increase in the asset-size threshold to less than $5 billion in
total assets as well as the addition of a criterion to exclude
institutions that are treated as large or highly complex institutions
for deposit insurance assessment purposes. The Call Report instructions
currently provide that, beginning with the first quarterly report date
following the effective date of a business combination, a transaction
between entities under common control, or a branch acquisition that is
not a business combination involving an institution and one or more
other depository institutions, the resulting institution, regardless of
its size prior to the transaction, must file the FFIEC 041 Call Report
if its consolidated total assets after the consummation of the
transaction are $1 billion or more. The agencies are proposing to
remove this provision from the instructions, but the resulting
institution may be required to file the FFIEC 041 Call Report
consistent with the reservation of authority in the rule. All of the
proposed FFIEC 051 Call Report eligibility criteria, along with
justifications, are provided above in section II.A. of the
Supplementary Information section (``Covered Depository Institution'').
Based on June 30, 2018, Call Report data, there were 547 institutions
with $1 billion or more, but less than $5 billion in total assets that
likely would meet the definition of ``covered depository institution''
in the proposed rule.
Second, the agencies are proposing to revise the reporting
frequency and
[[Page 58441]]
applicability of certain data items in the FFIEC 051 Call Report.
Specifically, the agencies are proposing to reduce the reporting
frequency of certain existing data items in the FFIEC 051 Call Report
from quarterly to semiannual reporting. This proposal would reduce
reporting in the first and third calendar quarters by 502 data items
\37\ or a reduction of approximately 37 percent of the data items
included in the June 30, 2018, FFIEC 051 Call Report.
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\37\ This number includes 69 data items collected on Schedule
RC-T, Fiduciary and Related Services, that are only reported by
certain institutions with fiduciary powers that have fiduciary
activity to report.
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Third, for covered depository institutions with total assets of $1
billion or more, but less than $5 billion, the agencies are proposing
to add to the FFIEC 051 Call Report certain data items that these
institutions currently report on the FFIEC 041 Call Report, but
generally with reduced reporting frequency. The agencies are proposing
to add these items to meet the agencies' data needs and assist the
agencies in fulfilling their missions of ensuring the safety and
soundness of depository institutions and the financial system, as well
as the protection of consumer financial rights and providing deposit
insurance.
Changes to the Frequency of Data Collection in the FFIEC 051 Call
Report
The agencies are proposing, for the reasons explained below, to
reduce the frequency of the following items on the FFIEC 051 Call
Report from quarterly to semiannual (i.e., these items would be
reported in the June 30 and December 31 Call Reports only):
Schedule RI, Income Statement, Memorandum item 14.
Institutions currently report the amount of other-than-temporary
impairment losses on certain debt securities that are recognized
through earnings in this Memorandum item. The agencies do not believe
it is necessary for institutions eligible to file the FFIEC 051 Call
Report to continue to provide this amount on a quarterly basis, as most
of these institutions are not currently reporting losses in this item
given current economic conditions. The agencies note that changes in
the accounting for credit losses will eliminate the need for this item
for an ever increasing percentage of institutions through year-end
2022. In the interim, the agencies can review other-than-temporary
impairment information for the first and third calendar quarters, as
necessary, as part of on-site examinations or through other periodic
monitoring.
Schedule RC-C, Part I, Loans and Leases, Memorandum items
1.a through 1.f, and Schedule RC-N, Past Due and Nonaccrual Loans,
Leases, and Other Assets, Memorandum items 1.a through 1.f.
Institutions currently report breakdowns of troubled debt
restructurings by loan category, separately for those restructurings in
compliance with their modified terms in Schedule RC-C and those
restructurings that are past due 30 days or more or in nonaccrual
status in Schedule RC-N. Institutions would still be required to report
the totals for their troubled debt restructurings in Schedule RC-C,
Part I, Memorandum item 1.g, and Schedule RC-N, Memorandum item 1.g, on
a quarterly basis. The agencies do not believe it is necessary for
institutions eligible to file the FFIEC 051 Call Report to continue to
provide the breakdowns of troubled debt restructurings on a quarterly
basis. The agencies can review information on troubled debt
restructurings by loan category for the first and third quarters as
part of on-site examinations or through other periodic monitoring, as
necessary.
Schedule RC-E, Deposit Liabilities, Memorandum item 1.a.
Institutions currently report the total amount of Individual Retirement
Account and Keogh plan deposits in this Memorandum item. The agencies
do not believe it is necessary for institutions eligible to file the
FFIEC 051 Call Report to continue to provide these amounts on a
quarterly basis as this item generally does not fluctuate significantly
between quarters for most eligible institutions. The agencies can
review information on these deposits for the first and third quarters
as part of on-site examinations or through other periodic monitoring,
as necessary.
Schedule RC-E, Memorandum item 5. Institutions currently
report whether they offer consumer deposit products in this Memorandum
item. The agencies do not believe it is necessary for institutions
eligible to file the FFIEC 051 Call Report to continue to provide this
information on a quarterly basis, as this item does not change
frequently for most eligible institutions.
Schedule RC-M, Memoranda, items 8.a through 8.c. In these
items, institutions currently report their primary internet website
address, addresses for other websites used to solicit deposits, and
alternate trade names used by the institutions. The agencies do not
believe it is necessary for institutions eligible to file the FFIEC 051
Call Report to continue to provide this information on a quarterly
basis as these items do not change frequently for most eligible
institutions.
Schedule RC-R, Part II, Regulatory Capital Risk-Weighted
Assets, items 1 through 25, columns A through S. In these items,
institutions currently report detailed information about the risk-
weighting of various types of assets and other exposures under the
agencies' regulatory capital rules. Institutions still would need to
calculate risk-weighted assets, maintain appropriate documentation for
this calculation, and report items 26 through 31 of Part II, if
applicable, on a quarterly basis. The agencies do not believe it is
necessary for institutions eligible to file the FFIEC 051 Call Report
to continue to provide the details of their risk-weighting allocations
and calculations in Schedule RC-R, Part II, on a quarterly basis as the
agencies can adequately review regulatory capital calculations for the
first and third calendar quarters as part of on-site examinations or
through other types of periodic monitoring, as necessary.
Schedule RC-R, Part II, Memorandum items 1 through 3,
including all subitems and columns. Institutions currently report
detailed information in these items about derivative exposures that are
elements of the risk-weighting process for these exposures. The
agencies do not believe it is necessary for institutions eligible to
file the FFIEC 051 Call Report to continue to report these amounts on a
quarterly basis. Generally, institutions eligible to file the FFIEC 051
Call Report do not have a significant amount of derivatives contracts,
and the agencies can review information about institutions' risk-
weighting calculations for derivative exposures for the first and third
calendar quarters, as necessary, as part of on-site examinations or
through other periodic monitoring.
Schedule RC-T, Fiduciary and Related Services, items 4
through 13, columns A through D; items 14 through 22; and Memorandum
items 3.a through 3.h, for institutions with total fiduciary assets
greater than $250 million but less than or equal to $1 billion, and
gross fiduciary and related services income less than or equal to 10
percent of total revenue.\38\ Items 4 through 13 collect breakdowns for
managed and non-managed accounts of the assets and number of accounts
by type of fiduciary account. Fiduciary and related services income by
type of fiduciary account is reported in items 14 and 22. Memorandum
item 3 is used for reporting on the number and market
[[Page 58442]]
value of collective investment funds. Currently, institutions with
total fiduciary assets greater than $250 million or with fiduciary
income greater than 10 percent of total revenue must report these items
on a quarterly basis. The proposed change would reduce the reporting of
these items to semiannual for institutions with total fiduciary assets
greater than $250 million but less than or equal to $1 billion and with
fiduciary income less than or equal to 10 percent of total revenue.
Institutions with total fiduciary assets less than or equal to $250
million that do not meet the fiduciary income test already have reduced
reporting for these items (either through an exemption or annual
reporting). The agencies do not believe it is necessary for
institutions eligible to file the FFIEC 051 Call Report with total
fiduciary assets greater than $250 million but less than or equal to $1
billion that do not meet the fiduciary income test to continue to
provide managed and non-managed account data and collective investment
fund information on a quarterly basis, as these items generally do not
fluctuate significantly between quarters for institutions with
fiduciary assets in this size range. In addition, when quarter-to-
quarter and year-over-year comparisons of an institution's year-to-date
income from fiduciary activities, as reported in the Call Report income
statement, raise supervisory concerns, the agencies can review
information on the composition of fiduciary income for the first and
third calendar quarters as part of on-site examinations or through
other periodic monitoring.
---------------------------------------------------------------------------
\38\ Total fiduciary assets are measured as of the preceding
December 31. Gross fiduciary and related services income is measured
as a percentage of revenue (net interest income plus noninterest
income) for the preceding calendar year.
---------------------------------------------------------------------------
Detail for each affected data item described above is shown in
Appendix A.
Addition of Data Items to the FFIEC 051 Call Report for Institutions
With Total Assets of $1 Billion or More
The agencies are proposing to add certain data items to the FFIEC
051 Call Report that would apply only to covered depository
institutions with total assets of $1 billion or more. These items are
currently reported by institutions with total assets of $1 billion or
more that file the FFIEC 031 or FFIEC 041 Call Report, but they are not
required to be completed by institutions with less than $1 billion in
total assets that file the FFIEC 031, FFIEC 041, or FFIEC 051 Call
Reports. Therefore, the additional data items would not represent new
data items for covered depository institutions with total assets of $1
billion or more, but rather are items carried over from the FFIEC 041
version of the Call Report, generally using the same definitions and
calculations and with reduced reporting frequency.
Schedule RI, Memorandum items 15.a. through 15.d. These
items provide data on the three key categories of service charges on
certain deposit accounts: Overdraft-related service charges on consumer
accounts, monthly maintenance charges on consumer accounts, and
consumer ATM fees. The agencies and the Bureau of Consumer Financial
Protection (Bureau) propose to collect these items on an annual
reporting frequency as they provide the only comprehensive data source
from which supervisors and policymakers can estimate or evaluate the
composition of consumer deposit account-related fees and how they
affect consumers and a depository institution's earnings stability. The
addition of these items to the Call Report in 2015 has supported the
agencies and the Bureau in monitoring these types of transactional
costs incurred by consumers. The data specific to overdraft-related
fees is particularly pertinent for supervisors and policymakers because
they compose the majority of consumer deposit service charges (and for
many institutions, of total deposit service charges). Continuing to
collect these data on an annual basis from covered depository
institutions with $1 billion or more in total assets will support the
agencies and the Bureau in monitoring these activities and informing
any potential future rulemaking. The agencies are proposing to add
these items to the FFIEC 051 on an annual basis (December 31) for
covered depository institutions with total assets of $1 billion or more
that respond affirmatively to the screening question (Schedule RC-E,
Memorandum item 5, regarding whether an institution offers a consumer
deposit account product), while institutions with total assets less
than $1 billion will not need to report these items regardless of their
response to the screening question. Institutions with total assets
between $1 billion and less than $5 billion that file the FFIEC 041
Call Report currently report this information quarterly, so the
proposed annual reporting would represent a frequency reduction for
institutions filing the FFIEC 051 Call Report, while still meeting the
agencies' need for this information.
Schedule RI-C, Disaggregated Data on the Allowance for
Loan and Lease Losses (ALLL). The agencies are proposing to add a
condensed version of the existing FFIEC 041 Schedule RI-C to the FFIEC
051 Call Report and reduce the reporting frequency of this condensed
schedule from quarterly to semiannual (i.e., reported in the June 30
and December 31 Call Reports only). The existing six columns in which
institutions report the ``recorded investment'' and ``related
allowance'' by loan category and allowance measurement method in
Schedule RI-C in the FFIEC 041 Call Report would be combined into two
columns in the FFIEC 051 Call Report, one for total recorded investment
by loan category (sum of existing Columns A, C, and E) and the other
for the total related allowance by loan category (sum of existing
Columns B, D, and F) and any unallocated allowance. Consistent with the
agencies' proposed revisions to the Call Report to address the changes
in the accounting for credit losses resulting from the Financial
Accounting Standards Board's Accounting Standards Update 2016-13,\39\
effective for the June 30, 2021, report date, text referencing
``recorded investment'' and ``allowance for loan and lease losses'' in
the condensed version of the FFIEC 041 Schedule RI-C that would be
added to the FFIEC 051 reporting form would be changed to ``amortized
cost'' and ``allowance for credit losses'' (ACL), respectively.\40\
From June 30, 2019, through December 31, 2020, the condensed allowance-
related information on the FFIEC 051 Call Report and the related
instructions would include guidance stating that institutions that have
adopted ASU 2016-13 should report the amortized cost and related ACL by
loan category (and any unallocated ACL). For the transition period from
June 30, 2021, through December 31, 2022, the reporting form and
instructions for this condensed allowance-related information would be
updated to include guidance stating that institutions that have not
adopted ASU 2016-13 should report the ``recorded investment'' and the
``allowance for loan and lease losses,'' as applicable, in these items.
In addition, consistent with the proposed revisions to address the
changes in accounting for credit losses, the agencies also propose
adding data items for institutions to report the disaggregated
allowance balances for each category of held-to-maturity (HTM)
securities to the FFIEC 051. The agencies believe the condensed
semiannual information on the composition of ALLL (allowance for credit
losses after adoption of ASU 2016-13) in relation to the total
[[Page 58443]]
recorded investment (amortized cost after adoption of ASU 2016-13) for
each loan category, and disaggregated information on HTM securities
allowances, is necessary to adequately supervise covered depository
institutions with total assets of $1 billion or more but less than $5
billion. The information collected in Schedule RI-C as it is proposed
to be included in the FFIEC 051 Call Report will support the agencies'
analyses of the allowance and credit risk management. The data on
allowance allocations by loan category, when reviewed in conjunction
with the past due and nonaccrual data reported by loan category in
Schedule RC-N, which will continue to be reported on a quarterly basis,
assist the agencies in assessing an institution's credit risk exposures
and evaluating the appropriateness of the overall level of its ALLL and
its allocations by loan category. If changes in the quarterly past due
and nonaccrual data by loan category at individual institutions in
quarters when the disaggregated allowance data would not be reported in
the FFIEC 051 Call Report raise questions about the composition of the
allowance, supervisory follow-up can be undertaken on a case-by-case
basis. The agencies note that many institutions with $1 billion or more
but less than $5 billion in total assets do not publicly release
quarterly financial statements, which makes the Call Report data the
only information regularly available to the agencies on the composition
of the allowance. By providing this detail in the FFIEC 051 Call
Report, which supports the identification of changes in the ALLL over
time, examiners can better perform off-site monitoring of activity
within the ALLL in periods between examinations and when planning for
examinations.
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\39\ See 83 FR 49160 (September 28, 2018).
\40\ The amortized cost amounts to be reported would exclude any
accrued interest receivable that is reported in ``Other assets'' on
the Call Report balance sheet.
---------------------------------------------------------------------------
Schedule RC-E, Memorandum items 6 and 7, including all
subitems. Institutions report disaggregated data on balances in
consumer and non-consumer deposit accounts in these items. These items
are critical to the agencies' and the Bureau's consumer deposit product
monitoring and rulemaking mandates for several reasons. As noted in the
agencies' 2013 notice \41\ proposing the addition of these items to the
Call Report, surveys indicate that over 90 percent of U.S. households
maintain at least one deposit account. However, there are no other
reliable sources from which to calculate the amount of funds held in
consumer accounts. The data now reported in these items on the Call
Report significantly enhances the ability of the agencies and the
Bureau to monitor how different tiers of banks serve consumers and,
specifically, consumer use of deposit accounts as transactional,
savings, and investment vehicles. These data also permit the agencies
to conduct improved assessments of institutional liquidity risk and
significantly enhance the agencies' ability to assess institutional
funding stability. The agencies are proposing to add these items to the
FFIEC 051 on an annual basis (December 31) for institutions with total
assets of $1 billion or more but less than $5 billion that respond
affirmatively to the screening question (Schedule RC-E, Memorandum item
5, regarding whether an institution offers a consumer deposit account
product), while banks with total assets less than $1 billion will not
need to report these items regardless of their response to the
screening question. Institutions with total assets of $1 billion or
more but less than $5 billion that file the FFIEC 041 currently report
this information quarterly, so the proposed annual reporting would
represent a frequency reduction for institutions filing the FFIEC 051,
while still meeting the agencies' need for this information.
---------------------------------------------------------------------------
\41\ 78 FR 12141 (February 21, 2013).
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Schedule RC-O, Other Data for Deposit Insurance and FICO
Assessments, Memorandum item 2, ``Estimated amount of uninsured
deposits, including related interest accrued and unpaid.'' The agencies
are proposing to add this data item on a quarterly basis for
institutions with total assets of $1 billion or more but less than $5
billion. The FDIC uses this data item for the calculation of estimated
insured deposits, which is the denominator of the Deposit Insurance
Fund (DIF) reserve ratio. (The numerator is the balance of the DIF.)
The DIF reserve ratio is a key measure in assessing the adequacy and
viability of the fund and is a driving force behind setting deposit
insurance assessment rate schedules. For example, the FDIC evaluates
whether assessment rates are likely to be sufficient to meet statutory
requirements related to the minimum reserve ratio.\42\ The FDIC also
has established a long-term DIF management plan that adjusts assessment
rate schedules as the reserve ratio reaches certain levels.\43\ Given
that assessment regulations depend on the DIF reserve ratio, it is
important that the best information be used in estimating insured
deposits. This item is necessary for a more accurate calculation of the
DIF reserve ratio and to implement related statutory requirements. This
information is also important for safety and soundness purposes.
Uninsured deposit data are used to monitor liquidity in a stress event.
The higher the percentage of uninsured deposits to available liquidity
sources, the greater the liquidity risk to an institution as uninsured
depositors are more likely to quickly move funds at risk as a result of
negative publicity or other adverse information about the institution.
---------------------------------------------------------------------------
\42\ See e.g., 12 U.S.C. 1817 note. Generally, the FDIC shall
take such steps as may be necessary for the reserve ratio of the DIF
to reach 1.35 percent of estimated insured deposits by September 30,
2020.
\43\ See 12 CFR 327.10.
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Detail for each affected data item described above is shown in
Appendix B.
The revisions to the FFIEC 051 Call Report described above are
proposed to take effect as of the March 31, 2019, report date. The less
than $5 billion asset-size test for determining eligibility to file the
FFIEC 051 Call Report beginning March 31, 2019, would be based on the
total assets reported on an institution's June 30, 2018, Call Report.
An institution eligible to file the FFIEC 051 Call Report also has the
option to file the FFIEC 041 Call Report. For an institution with less
than $5 billion in total assets that qualifies to use the FFIEC 051
Call Report for the first time as a result of the agencies' proposal to
increase the asset reporting threshold for the FFIEC 051 Call Report
from less than $1 billion to less than $5 billion, and that desires to
use that report form but is unable to do so for the March 31, 2019,
Call Report date, the institution may begin reporting on the FFIEC 051
Call Report as of the June 30, 2019, report date or in a subsequent
calendar quarter of 2019. Alternatively, the institution could wait
until March 31, 2020, to begin reporting on the FFIEC 051 Call Report,
assuming it meets the asset-size threshold for eligibility as of June
30, 2019, and meets the non-asset-size criteria as of March 31, 2020.
Beginning in 2020, an institution should file whichever version of the
Call Report it was both eligible and chose to file in the first quarter
of that year for the remainder of that year if it continues to meet the
non-asset-size criteria.
Proposed Revision, With Extension, of the Following Information
Collections
Report Title: Consolidated Reports of Condition and Income (Call
Report).
Form Number: FFIEC 051 (for eligible small institutions).
Frequency of Response: Quarterly.
Affected Public: Business or other for-profit.
Type of Review: Revision and extension of currently approved
collections.
[[Page 58444]]
Timing
The proposed changes in this notice would be effective beginning
with the March 31, 2019, Call Report.
OCC:
OMB Control No.: 1557-0081.
Estimated Number of Respondents: 876 national banks and federal
savings associations.
Estimated Average Burden per Response: 38.29 burden hours per
quarter to file.
Estimated Total Annual Burden: 134,168 burden hours to file.
Board:
OMB Control No.: 7100-0036.
Estimated Number of Respondents: 563 state member banks.
Estimated Average Burden per Response: 41.75 burden hours per
quarter to file.
Estimated Total Annual Burden: 94,021 burden hours to file.
FDIC:
OMB Control No.: 3064-0052.
Estimated Number of Respondents: 2,685 insured state nonmember
banks and state savings associations.
Estimated Average Burden per Response: 39.60 burden hours per
quarter to file.
Estimated Total Annual Burden: 425,304 burden hours to file.
When the estimates are calculated across the agencies considering
all expected filers of the FFIEC 051 Call Report under this proposal,
the estimated average burden hours per calendar quarter for this report
are 39.95. The burden hours for current FFIEC 051 Call Report filers
are 39.39. The proposed revisions to the FFIEC 051 Call Report in this
notice would represent a reduction in estimated average burden hours
per quarter of 1.18 hours to 38.21 hours for the current FFIEC 051 Call
Report filers. For newly eligible filers, the average burden hours
would decrease from approximately 64.49 hours to 52.31 hours, a
reduction of 12.18 hours per quarter. 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 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).
Request for Comments
Public comment is requested on all aspects of this joint notice.
Comment is specifically invited on:
a. Whether institutions would find the proposal to reduce the
reporting frequency of the risk-weighting data for the various types of
assets and other exposures that are reported in Schedule RC-R, Part II,
items 1 through 25, columns A through S, to be beneficial in terms of
reducing some of the reporting burden associated with the Call Report
even though institutions would still need to calculate, maintain
appropriate documentation for, and report the total amount of their
risk-weighted assets in Schedule RC-R, Part II. How would semiannual
reporting of these risk-weighting data in Schedule RC-R, Part II affect
an institution's ability to determine its compliance each calendar
quarter with the prompt corrective action requirements in 12 CFR part 6
(OCC); 12 CFR part 208 (Board); 12 CFR 324, subpart H (FDIC)?
b. Whether the data items that the agencies propose for reduced
reporting for covered depository institutions are appropriate. Why or
why not?
c. The agencies are proposing to discontinue the treatment in the
current FFIEC 051 Call Report instructions for institutions with less
than $1 billion in total assets that immediately disqualifies the
institution from filing the FFIEC 051 Call Report if it exceeds the
asset-size criterion due to a merger or acquisition. Is this
appropriate and why?
Comments also are invited on:
d. Whether the collection of information is necessary for the
proper performance of the agencies' functions, including whether the
information has practical utility;
e. The accuracy or the estimate of the burden of the information
collections, including the validity of the methodology and assumptions
used;
f. Ways to enhance the quality, utility, and clarity of the
information to be collected;
g. Ways to minimize the burden of the information collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
h. Estimates of capital or startup costs and costs of operation,
maintenance, and purchase of services to provide information.
B. Regulatory Flexibility Act Analysis
The Regulatory Flexibility Act \44\ (RFA) requires an agency to
either provide an initial regulatory flexibility analysis with a
proposed rule for which general notice of proposed rulemaking is
required or to certify that the proposed rule will not have a
significant economic impact on a substantial number of small entities.
The U.S. Small Business Administration (SBA) establishes size standards
that define which entities are small businesses for purposes of the
RFA.\45\ Under regulations issued by the SBA, the size standard to be
considered a small business for banking entities subject to the
proposed rule is $550 million or less in consolidated assets.\46\
---------------------------------------------------------------------------
\44\ 5 U.S.C. 601 et seq.
\45\ U.S. SBA, Table of Small Business Size Standards Matched to
North American Industry Classification System Codes, available at
https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf.
\46\ See 13 CFR 121.201.
---------------------------------------------------------------------------
OCC: The RFA requires an agency, in connection with a proposed
rule, to prepare an Initial Regulatory Flexibility Analysis describing
the impact of the rule on small entities (defined by the SBA for
purposes of the RFA to include commercial banks and savings
institutions with total assets of $550 million or less and trust
companies with total revenue of $38.5 million or less) or to certify
that the proposed rule would not have a significant economic impact on
a substantial number of small entities. As of December 31, 2017, the
OCC supervised 886 small entities. The rule would expand eligibility to
file the FFIEC 051 version of the Call Report to institutions with
total assets of between $1 billion and less than $5 billion. None of
these newly eligible institutions would be considered small entities as
defined by the SBA. Therefore, the OCC certifies that the proposed rule
would not have a significant economic impact on a substantial number of
OCC-supervised small entities.
Board: In accordance with section 603(a) of the RFA, the Board is
publishing an initial regulatory flexibility analysis for the proposed
rule. The RFA requires an agency to prepare an initial regulatory
flexibility analysis, which must contain (1) a description of the
reasons why action by the agency is being considered; (2) a succinct
statement of the objectives of, and legal basis for, the proposed rule;
(3) a description of and, where feasible, an estimate of the number of
small entities to which the proposed rule will apply; (4) a description
of the projected reporting, recordkeeping and other compliance
requirements of the proposed rule; (5) an identification, to the extent
practicable, of all relevant Federal rules which may duplicate, overlap
or conflict with the proposed rule; and (6) a description of
significant alternatives to the proposed rule which accomplish its
stated objectives.\47\
---------------------------------------------------------------------------
\47\ 5 U.S.C. 603.
---------------------------------------------------------------------------
The Board has considered the potential impact of the proposed rule
on small entities in accordance with the RFA. Based on its analysis and
for the
[[Page 58445]]
reasons stated below, the Board believes that this proposed rule will
not have a significant economic impact on a substantial number of small
entities. Nevertheless, the Board is publishing and inviting comment on
this initial regulatory flexibility analysis. A final regulatory
flexibility analysis will be conducted after comments received during
the public comment period have been considered.
1. Reasons for the Proposal
As discussed in the Supplementary Information, the agencies are
proposing to implement section 205 of EGRRCPA, which requires the
agencies to allow for a reduced reporting requirement for a ``covered
depository institution'' when an institution files the first and third
Call Reports for a year. The proposal would define ``covered depository
institution'' and establish the reduced reporting permissible for such
institutions in the Call Report for the first and third calendar
quarters of a year. In connection with the implementation of reduced
reporting mandated by section 205, the Board is proposing to set forth
the general requirement that all state member banks must file
consolidated reports of condition pursuant to its statutory authority
under section 9 of the FRA and section 7(a)(3) of the FDIA.
2. Statement of Objectives and Legal Basis
As discussed above, the agencies' objectives in proposing this rule
are to reduce the reporting burden for covered depository institutions
by allowing them to file the FFIEC 051 Call Report in the first and
third quarters of a calendar year. The Board has explicit authority
under section 7 of the FDI Act, 12 U.S.C. 1817(a)(3) and (12), and
section 9 of the Federal Reserve Act, 12 U.S.C. 324, to establish
reporting requirements and eligibility criteria to file a reduced
report of condition for state member banks.
3. Description of Small Entities to Which the Regulation Applies
The Board's proposal would apply to state member banks. Under
regulations issued by the SBA, a small entity includes a state member
bank with total assets of $550 million or less. As of June 30, 2018,
there were approximately 533 state member banks that qualified as small
entities. The requirement set forth in section 208.122 of the Board's
proposed rule requiring state member banks to file reports of condition
would apply to all state member banks, regardless of size. However,
proposed section 208.122 does not establish a new requirement, but only
implements in Board regulation a statutory requirement to which state
member banks were already subject.
Section 208.123 of the Board's proposed rule would allow state
member banks that qualify as covered depository institutions to file
reduced reporting in first and third calendar quarters of the year,
which would apply to approximately 533 state member banks that qualify
as small entities. However, proposed section 208.123 would allow but
not require these small state member banks to file reduced reporting.
Accordingly, the proposed rule would not have a significant economic
impact on a substantial number of small entities.
4. Projected Reporting, Recordkeeping, and Other Compliance
Requirements
The proposed rule would not impose any new reporting,
recordkeeping, or other compliance requirements on small state member
banks. First, state member banks are already required to file reports
of condition each quarter of the calendar year in accordance with the
instructions of such reports. Second, the proposed rule would allow
small state member banks that qualify as covered depository
institutions to reduce their reporting, recordkeeping, and compliance
burden by filing the FFIEC 051 Call Report, the shortest version of the
Call Report, with further reduced reporting in the first and third
calendar quarters. As a result, the Board expects that the proposed
rule will reduce the reporting and associated recordkeeping and
compliance costs for the majority of small state member banks.
5. Identification of Duplicative, Overlapping, or Conflicting Federal
Regulations
The Board has not identified any likely duplication, overlap and/or
potential conflict between the proposed rule and any Federal rule.
6. Discussion of Significant Alternatives
The Board believes the proposed rule will not have a significant
economic impact on small state member banks and, as discussed in
Supplementary Information IV, does not believe there are any
significant alternatives to the proposal that would reduce the impact
of the proposal.
FDIC: The RFA requires that, in connection with a notice of
proposed rulemaking, an agency prepare and make available for public
comment an initial regulatory flexibility analysis that describes the
impact of the proposed rule on small entities.\48\ However, a
regulatory flexibility analysis is not required if the agency certifies
that the rule will not have a significant economic impact on a
substantial number of small entities, and publishes its certification
and a short explanatory statement in the Federal Register together with
the rule. The SBA has defined ``small entities'' to include banking
organizations with total assets of less than or equal to $550
million.\49\
---------------------------------------------------------------------------
\48\ 5 U.S.C. 601 et seq.
\49\ The SBA defines a small banking organization as having $550
million or less in assets, where ``a financial institution's assets
are determined by averaging the assets reported on its four
quarterly financial statements for the preceding year.'' See 13 CFR
121.201 (as amended, effective December 2, 2014). ``SBA counts the
receipts, employees, or other measure of size of the concern whose
size is at issue and all of its domestic and foreign affiliates.''
See 13 CFR 121.103. Following these regulations, the FDIC uses a
covered entity's affiliated and acquired assets, averaged over the
preceding four quarters, to determine whether the covered entity is
``small'' for the purposes of RFA.
---------------------------------------------------------------------------
As of June 30, 2018 Call Report data, the FDIC supervises 3,575
insured depository institutions, of which 2,763 are considered small
entities for the purposes of RFA. For the reasons described below, the
FDIC certifies that the proposed rule will not have a significant
economic impact on a substantial number of small entities.
As the agencies discussed in the Supplementary Information section
above, the proposed rule would implement section 205 of EGRRCPA by
defining ``covered depository institution'' to, among other things,
expand eligibility for filing the FFIEC 051 Call Report to insured
depository institutions with $1 billion or more, but less than $5
billion in total assets. Through a related PRA notice, the agencies are
proposing to reduce the reporting frequency for more than 400 data
items on the FFIEC 051 Call Report for the first and third reports of
condition for a year, and to add certain data items to the FFIEC 051
Call Report that would apply only to covered depository institutions
with total assets of $1 billion or more. Out of the additional data
items, only 1 would be required to be reported every quarter, while the
remaining only would be required semiannually or annually (i.e., in the
second and fourth quarters, or only the fourth quarter).
The FDIC estimates that under the proposed definition of ``covered
depository institution,'' 295 FDIC-supervised depository institutions
that reported total assets of $1 billion or more, but less than $5
billion, could be eligible to file the FFIEC 051 Call Report assuming
they meet the other non-asset-
[[Page 58446]]
size criteria under the proposed rule. However, because this aspect of
the rule only affects institutions with $1 billion or more, but less
than $5 billion in total assets, it will not affect any small, FDIC-
supervised institutions.
As the agencies discussed in the PRA section, the FDIC is proposing
to reduce the reporting frequency of more than 400 data items on the
FFIEC 051 Call Report for the first and third calendar quarters. These
data items are currently collected every calendar quarter on the FFIEC
051 Call Report. Every covered depository institution with less than $5
billion in total assets that files the FFIEC 051 Call Report would
experience a reduction in reporting for the first and third calendar
quarters as a result of this proposal. The FDIC estimates that the
proposed reduction in reporting frequency of more than 400 data items
for covered depository institutions in the first and third calendar
quarters would reduce the average quarterly burden hours by 1.18 hours
per institution. For the 2,221 small, FDIC-supervised depository
institutions that filed the FFIEC 051 Call Report for the June 30, 2018
report date, this represents a total estimated burden reduction of
2,621 hours per quarter.\50\ While the proposed reduced reporting could
affect a substantial number of small, FDIC-supervised depository
institutions, it would not result in a significant economic impact.
---------------------------------------------------------------------------
\50\ 1.18 hours * 2,221 institutions.
---------------------------------------------------------------------------
Based on the agencies' total hourly wage rate of $117 for Call
Report preparation, and the reduction in reporting hours resulting from
the proposed reduced reporting frequency of certain items in the FFIEC
051 Call Report discussed in the PRA section, it is estimated that
annual reporting costs could be $1,226,628 less for small, FDIC-
supervised insured depository institutions that file the FFIEC 051 Call
Report, or 0.011 percent of total annualized non-interest expenses.\51\
---------------------------------------------------------------------------
\51\ $117 per hour * 2,621 hours per quarter * 4 quarters per
year. FDIC Call Report Data June 30th, 2018.
---------------------------------------------------------------------------
The proposed rule could pose some additional regulatory costs for
small, FDIC-supervised depository institutions that file the FFIEC 051
Call Report that are associated with changes to internal systems or
processes. The FDIC anticipates that costs associated with either
switching to file the FFIEC 051 Call Report, or reprogramming for
reduced reporting in the first and third calendar quarters, would be
one-time costs. However, these costs are difficult to estimate
accurately with available information because they depend upon the
individual characteristics of each insured depository institution,
their recordkeeping and reporting systems, and the decisions of senior
management.
Based on the information above, the FDIC certifies that the
proposed rule would not have a significant economic impact, although a
substantial number of small entities would be affected.
The FDIC invites comments on all aspects of the supporting
information provided in this RFA section. In particular, would this
rule have any significant effects on small entities that the FDIC has
not identified?
C. Plain Language
Section 722 of the Gramm-Leach-Bliley Act requires the Federal
banking agencies to use plain language in all proposed and final rules
published after January 1, 2000. The agencies have sought to present
the proposed rule in a simple and straightforward manner, and invite
comment on the use of plain language. For example:
Have the agencies organized the material to suit your
needs? If not, how could they present the rule more clearly?
Are the requirements in the rule clearly stated? If not,
how could the rule be more clearly stated?
Do the regulations contain technical language or jargon
that is not clear? If so, which language requires clarification?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the regulation easier to
understand? If so, what changes would achieve that?
Is this section format adequate? If not, which of the
sections should be changed and how?
What other changes can the agencies incorporate to make
the regulation easier to understand?
D. Riegle Community Development and Regulatory Improvement Act of 1994
The Riegle Community Development and Regulatory Improvement Act of
1994 (RCDRIA) requires that each Federal banking agency, in determining
the effective date and administrative compliance requirements for new
regulations that impose additional reporting, disclosure, or other
requirements on IDIs, consider, consistent with principles of safety
and soundness and the public interest, any administrative burdens that
such regulations would place on depository institutions, including
small depository institutions, and customers of depository
institutions, as well as the benefits of such regulations. In addition,
new regulations and amendments to regulations that impose additional
reporting, disclosures, or other new requirements on IDIs generally
must take effect on the first day of a calendar quarter that begins on
or after the date on which the regulations are published in final
form.\52\
---------------------------------------------------------------------------
\52\ 12 U.S.C. 4802.
---------------------------------------------------------------------------
Because the proposal would not impose additional reporting,
disclosure, or other requirements on IDIs, section 302 of the RCDRIA
therefore does not apply. Nevertheless, the requirements of RCDRIA will
be considered as part of the overall rulemaking process. In addition,
the agencies also invite any other comments that further will inform
the agencies' consideration of RCDRIA.
E. OCC Unfunded Mandates Reform Act of 1995
The OCC analyzed the proposed rule under the factors set forth in
the Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under
this analysis, the OCC considered whether the proposed rule includes a
Federal mandate that may result in the expenditure by State, local, and
Tribal governments, in the aggregate, or by the private sector, of $100
million or more in any one year (adjusted for inflation). There are 123
national banks and Federal savings associations with total assets
between $1 billion and less than $5 billion that could be eligible for
reduced reporting under the proposed rule. The OCC estimates that each
of these institutions that switches to the FFIEC 051 could save
approximately $6,000 per year. Savings may be less during the first
year of implementation due to costs associated with updating systems
and processes, but these costs are not expected to exceed the estimated
savings. Therefore, the OCC has determined that this proposed rule
would not result in expenditures by State, local, and Tribal
governments, or the private sector, of $100 million or more in any one
year. Accordingly, the OCC has not prepared a written statement to
accompany this proposal.
Appendix A: Proposed Reductions in Frequency of Collection for the
FFIEC 051
The following data items are currently collected on the FFIEC
051 quarterly. The data items are proposed to be collected
semiannually in the June and December reports only.
[[Page 58447]]
------------------------------------------------------------------------
Schedule Item Item name MDRM No.(s)
------------------------------------------------------------------------
RI................... M.14........... Other-than- RIADJ321.
temporary
impairment
losses on held-
to-maturity
and available-
for-sale debt
securities
recognized in
earnings.
RC-C, Part I......... M.1.a.(1)...... Loans RCONK158.
restructured
in troubled
debt
restructurings
(TDRs) that
are in
compliance
with their
modified
terms: 1-4
family
residential
construction
loans.
RC-C, Part I......... M.1.a.(2)...... Loans RCONK159.
restructured
in TDRs that
are in
compliance
with their
modified
terms: Other
construction
loans and all
land
development
and other land
loans.
RC-C, Part I......... M.1.b.......... Loans RCONF576.
restructured
in TDRs that
are in
compliance
with their
modified
terms: Loans
secured by 1-4
family
residential
properties.
RC-C, Part I......... M.1.c.......... Loans RCONK160.
restructured
in TDRs that
are in
compliance
with their
modified
terms: Secured
by multifamily
(5 or more)
residential
properties.
RC-C, Part I......... M.1.d.(1)...... Loans RCONK161.
restructured
in TDRs that
are in
compliance
with their
modified
terms: Loans
secured by
owner-occupied
nonfarm
nonresidential
properties.
RC-C, Part I......... M.1.d.(2)...... Loans RCONK162.
restructured
in TDRs that
are in
compliance
with their
modified
terms: Loans
secured by
other nonfarm
nonresidential
properties.
RC-C, Part I......... M.1.e.......... Loans RCONK256.
restructured
in TDRs that
are in
compliance
with their
modified
terms:
Commercial and
industrial
loans.
RC-C, Part I......... M.1.f.......... Loans RCONK165.
restructured
in TDRs that
are in
compliance
with their
modified
terms: All
other loans
(include loans
to individuals
for household,
family, and
other personal
expenditures).
RC-C, Part I......... M.1.f.(1)...... Loans RCONK166.
restructured
in TDRs that
are in
compliance
with their
modified
terms: Loans
secured by
farmland.
RC-C, Part I......... M.1.f.(4).(a).. Loans RCONK098.
restructured
in TDRs that
are in
compliance
with their
modified
terms: Credit
cards.
RC-C, Part I......... M.1.f.(4).(b).. Loans RCONK203.
restructured
in TDRs that
are in
compliance
with their
modified
terms:
Automobile
loans.
RC-C, Part I......... M.1.f.(4).(c).. Loans RCONK204.
restructured
in TDRs that
are in
compliance
with their
modified
terms: Other
(includes
revolving
credit plans
other than
credit cards
and other
consumer
loans).
RC-C, Part I......... M.1.f.(5)...... Loans RCONK168.
restructured
in TDRs that
are in
compliance
with their
modified
terms: Loans
to finance
agricultural
production and
other loans to
farmers
included in
Schedule RC-C,
part I,
Memorandum
item 1.f,
above.
RC-E................. M.1.a.......... Total RCON6835.
Individual
Retirement
Accounts
(IRAs) and
Keogh Plan
accounts.
RC-E................. M.5............ Does your RCONP752.
institution
offer one or
more consumer
deposit
account
products,
i.e.,
transaction
account or
nontransaction
savings
account
deposit
products
intended
primarily for
individuals
for personal,
household, or
family use?.
[[Page 58448]]
RC-M................. 8.a............ Uniform TEXT4087.
Resource
Locator (URL)
of the
reporting
institution's
primary
Internet Web
site (home
page), if any
(Example:
www.examplebank.com).
RC-M................. 8.b............ URLs of all TE01N528,
other public- TE02N528,
facing TE03N528,
Internet TE04N528,
websites that TE05N528,
the reporting TE06N528,
institution TE07N528,
uses to accept TE08N528,
or solicit TE09N528,
deposits from TE10N528.
the public, if
any.
RC-M................. 8.c............ Trade names TE01N529,
other than the TE02N529,
reporting TE03N529,
institution's TE04N529,
legal title TE05N529,
used to TE06N529.
identify one
or more of the
institution's
physical
offices at
which deposits
are accepted
or solicited
from the
public, if any.
RC-N................. M.1.a.(1)...... Loans RCONK105,
restructured RCONK106,
in troubled RCONK107.
debt
restructurings
(TDRs)
included in
Schedule RC-N,
items 1
through 7,
above: 1-4
family
residential
construction
loans.
RC-N................. M.1.a.(2)...... Loans RCONK108,
restructured RCONK109,
in TDRs RCONK110.
included in
Schedule RC-N,
items 1
through 7,
above: Other
construction
loans and all
land
development
and other land
loans.
RC-N................. M.1.b.......... Loans RCONF661,
restructured RCONF662,
in TDRs RCONF663.
included in
Schedule RC-N,
items 1
through 7,
above: Loans
secured by 1-4
family
residential
properties.
RC-N................. M.1.c.......... Loans RCONK111,
restructured RCONK112,
in TDRs RCONK113.
included in
Schedule RC-N,
items 1
through 7,
above: Secured
by multifamily
(5 or more)
residential
properties.
RC-N................. M.1.d.(1)...... Loans RCONK114,
restructured RCONK115,
in TDRs RCONK116.
included in
Schedule RC-N,
items 1
through 7,
above: Loans
secured by
owner-occupied
nonfarm
nonresidential
properties.
RC-N................. M.1.d.(2)...... Loans RCONK117,
restructured RCONK118,
in TDRs RCONK119.
included in
Schedule RC-N,
items 1
through 7,
above: Loans
secured by
other nonfarm
nonresidential
properties.
RC-N................. M.1.e.......... Loans RCONK257,
restructured RCONK258,
in TDRs RCONK259.
included in
Schedule RC-N,
items 1
through 7,
above:
Commercial and
industrial
loans.
RC-N................. M.1.f.......... Loans RCONK126,
restructured RCONK127,
in TDRs RCONK128.
included in
Schedule RC-N,
items 1
through 7,
above: All
other loans
(include loans
to individuals
for household,
family, and
other personal
expenditures).
RC-N................. M.1.f.(1)...... Loans RCONK130,
restructured RCONK131,
in TDRs RCONK132.
included in
Schedule RC-N,
items 1
through 7,
above: Loans
secured by
farmland.
RC-N................. M.1.f.(4)(a)... Loans RCONK274,
restructured RCONK275,
in TDRs RCONK276.
included in
Schedule RC-N,
items 1
through 7,
above: Credit
cards.
RC-N................. M.1.f.(4)(b)... Loans RCONK277,
restructured RCONK278,
in TDRs RCONK279.
included in
Schedule RC-N,
items 1
through 7,
above:
Automobile
loans.
RC-N................. M.1.f.(4)(c)... Loans RCONK280,
restructured RCONK281,
in TDRs RCONK282.
included in
Schedule RC-N,
items 1
through 7,
above: Other
(includes
revolving
credit plans
other than
credit cards
and other
consumer
loans).
[[Page 58449]]
RC-N................. M.1.f.(5)...... Loans RCONK138,
restructured RCONK139,
in TDRs RCONK140.
included in
Schedule RC-N,
items 1
through 7,
above: Loans
to finance
agricultural
production and
other loans to
farmers.
RC-R, Part II........ 1.............. Cash and RCOND957,
balances due RCOND958,
from RCOND959,
depository RCOND960,
institutions. RCONS396,
RCONS397,
RCONS398.
RC-R, Part II........ 2.a............ Held-to- RCOND961,
maturity RCOND962,
securities. RCOND963,
RCOND964,
RCOND965,
RCONHJ74,
RCONHJ75,
RCONS399,
RCONS400.
RC-R, Part II........ 2.b............ Available-for- RCOND967,
sale RCOND968,
securities. RCOND969,
RCOND970,
RCONH271,
RCONH272,
RCONHJ76,
RCONHJ77,
RCONJA21,
RCONS402,
RCONS403,
RCONS405,
RCONS406.
RC-R, Part II........ 3.a............ Federal funds RCOND971,
sold. RCOND972,
RCOND973,
RCOND974,
RCONS410,
RCONS411.
RC-R, Part II........ 3.b............ Securities RCONH171,
purchased RCONH172.
under
agreements to
resell.
RC-R, Part II........ 4.a............ Loans and RCONH173,
leases held RCONH273,
for sale: RCONH274,
Residential RCONS413,
mortgage RCONS414,
exposures. RCONS415,
RCONS416,
RCONS417.
RC-R, Part II........ 4.b............ Loans and RCONH174,
leases held RCONH175,
for sale: High RCONH176,
volatility RCONH177,
commercial RCONH275,
real estate RCONH276,
exposures. RCONS419,
RCONS420,
RCONS421.
RC-R, Part II........ 4.c............ Loans and RCONH277,
leases held RCONH278,
for sale: RCONHJ78,
Exposures past RCONHJ79,
due 90 days or RCONS423,
more or on RCONS424,
nonaccrual. RCONS425,
RCONS426,
RCONS427,
RCONS428,
RCONS429.
RC-R, Part II........ 4.d............ Loans and RCONH279,
leases held RCONH280,
for sale: All RCONHJ80,
other RCONHJ81,
exposures. RCONS431,
RCONS432,
RCONS433,
RCONS434,
RCONS435,
RCONS436,
RCONS437.
RC-R, Part II........ 5.a............ Loans and RCONH178,
leases held RCONH281,
for RCONH282,
investment: RCONS439,
Residential RCONS440,
mortgage RCONS441,
exposures. RCONS442,
RCONS443.
RC-R, Part II........ 5.b............ Loans and RCONH179,
leases held RCONH180,
for RCONH181,
investment: RCONH182,
High RCONH283,
volatility RCONH284,
commercial RCONS445,
real estate RCONS446,
exposures. RCONS447.
RC-R, Part II........ 5.c............ Loans and RCONH285,
leases held RCONH286,
for RCONHJ82,
investment: RCONHJ83,
Exposures past RCONS449,
due 90 days or RCONS450,
more or on RCONS451,
nonaccrual. RCONS452,
RCONS453,
RCONS454,
RCONS455.
RC-R, Part II........ 5.d............ Loans and RCONH287,
leases held RCONH288,
for RCONHJ84,
investment: RCONHJ85,
All other RCONS457,
exposures. RCONS458,
RCONS459,
RCONS460,
RCONS461,
RCONS462,
RCONS463.
RC-R, Part II........ 6.............. LESS: Allowance RCON3123
for loan and (column A),
lease losses. RCON3123
(column B).
[[Page 58450]]
RC-R, Part II........ 7.............. Trading assets. RCOND976,
RCOND977,
RCOND978,
RCOND979,
RCOND980,
RCONH186,
RCONH187,
RCONH290,
RCONH291,
RCONH292,
RCONHJ86,
RCONHJ87,
RCONS466,
RCONS467.
RC-R, Part II........ 8.............. All other RCOND981,
assets. RCOND982,
RCOND983,
RCOND984,
RCOND985,
RCONH185,
RCONH188,
RCONH294,
RCONH295,
RCONHJ88,
RCONHJ89,
RCONS469,
RCONS470,
RCONS471.
RC-R, Part II........ 8.a............ Separate RCONH296,
account bank- RCONH297.
owned life
insurance.
RC-R, Part II........ 8.b............ Default fund RCONH298,
contributions RCONH299.
to central
counterparties.
RC-R, Part II........ 9.a............ On-balance RCONS475,
sheet RCONS476,
securitization RCONS477,
exposures: RCONS478,
Held-to- RCONS479.
maturity
securities.
RC-R, Part II........ 9.b............ On-balance RCONS480,
sheet RCONS481,
securitization RCONS482,
exposures: RCONS483,
Available-for- RCONS484.
sale
securities.
RC-R, Part II........ 9.c............ On-balance RCONS485,
sheet RCONS486,
securitization RCONS487,
exposures: RCONS488,
Trading assets. RCONS489.
RC-R, Part II........ 9.d............ On-balance RCONS490,
sheet RCONS491,
securitization RCONS492,
exposures: All RCONS493,
other on- RCONS494.
balance sheet
securitization
exposures.
RC-R, Part II........ 10............. Off-balance RCONS495,
sheet RCONS496,
securitization RCONS497,
exposures. RCONS498,
RCONS499.
RC-R, Part II........ 11............. Total balance RCON2170,
sheet assets. RCOND987,
RCOND988,
RCOND989,
RCOND990,
RCONH300,
RCONHJ90,
RCONHJ91,
RCONS500,
RCONS503,
RCONS505,
RCONS506,
RCONS507,
RCONS510.
RC-R, Part II........ 12............. Financial RCOND991,
standby RCOND992,
letters of RCOND993,
credit. RCOND994,
RCOND995,
RCOND996,
RCONHJ92,
RCONHJ93,
RCONS511.
RC-R, Part II........ 13............. Performance RCOND997,
standby RCOND998,
letters of RCOND999,
credit and RCONG603,
transaction- RCONG604,
related RCONG605,
contingent RCONS512.
items.
RC-R, Part II........ 14............. Commercial and RCONG606,
similar RCONG607,
letters of RCONG608,
credit with an RCONG609,
original RCONG610,
maturity of RCONG611,
one year or RCONHJ94,
less. RCONHJ95,
RCONS513.
RC-R, Part II........ 15............. Retained RCONG612,
recourse on RCONG613,
small business RCONG614,
obligations RCONG615,
sold with RCONG616,
recourse. RCONG617,
RCONS514.
RC-R, Part II........ 16............. Repo-style RCONH301,
transactions. RCONH302,
RCONS515,
RCONS516,
RCONS517,
RCONS518,
RCONS519,
RCONS520,
RCONS521,
RCONS522,
RCONS523.
RC-R, Part II........ 17............. All other off- RCONG618,
balance sheet RCONG619,
liabilities. RCONG620,
RCONG621,
RCONG622,
RCONG623,
RCONS524.
[[Page 58451]]
RC-R, Part II........ 18.a........... Unused RCONH303,
commitments: RCONH304,
Original RCONHJ96,
maturity of RCONHJ97,
one year or RCONS525,
less. RCONS526,
RCONS527,
RCONS528,
RCONS529,
RCONS530,
RCONS531.
RC-R, Part II........ 18.b........... Unused RCONG624,
commitments: RCONG625,
Original RCONG626,
maturity RCONG627,
exceeding one RCONG628,
year. RCONG629,
RCONH307,
RCONH308,
RCONHJ98,
RCONHJ99,
RCONS539.
RC-R, Part II........ 19............. Unconditionally RCONS540,
cancelable RCONS541.
commitments.
RC-R, Part II........ 20............. Over-the- RCONH309,
counter RCONH310,
derivatives. RCONHK00,
RCONHK01,
RCONS542,
RCONS543,
RCONS544,
RCONS545,
RCONS546,
RCONS547,
RCONS548.
RC-R, Part II........ 21............. Centrally RCONS549,
cleared RCONS550,
derivatives. RCONS551,
RCONS552,
RCONS554,
RCONS555,
RCONS556,
RCONS557.
RC-R, Part II........ 22............. Unsettled RCONH191,
transactions RCONH193,
(failed RCONH194,
trades). RCONH195,
RCONK196,
RCONH197,
RCONH198,
RCONH199,
RCONH200.
RC-R, Part II........ 23............. Total assets, RCONG630,
derivatives, RCONG631,
off-balance RCONG632,
sheet items, RCONG633,
and other RCONS558,
items subject RCONS559,
to risk RCONS560,
weighting by RCONS561,
risk-weight RCONS563,
category. RCONS564,
RCONS565,
RCONS566,
RCONS567,
RCONS568.
RC-R, Part II........ 25............. Risk-weighted RCONG634,
assets by risk- RCONG635,
weight RCONG636,
category. RCONG637,
RCONS569,
RCONS570,
RCONS571,
RCONS572,
RCONS574,
RCONS575,
RCONS576,
RCONS577,
RCONS578,
RCONS579.
RC-R, Part II........ M.1............ Current credit RCONG642.
exposure
across all
derivative
contracts
covered by the
regulatory
capital rules.
RC-R, Part II........ M.2.a.......... Notional RCONS582,
principal RCONS583,
amounts of RCONS584.
over-the-
counter
derivative
contracts:
Interest rate.
RC-R, Part II........ M.2.b.......... Notional RCONS585,
principal RCONS586,
amounts of RCONS587.
over-the-
counter
derivative
contracts:
Foreign
exchange rate
and gold.
RC-R, Part II........ M.2.c.......... Notional RCONS588,
principal RCONS589,
amounts of RCONS590.
over-the-
counter
derivative
contracts:
Credit
(investment
grade
reference
asset).
RC-R, Part II........ M.2.d.......... Notional RCONS591,
principal RCONS592,
amounts of RCONS593.
over-the-
counter
derivative
contracts:
Credit (non-
investment
grade
reference
asset).
RC-R, Part II........ M.2.e.......... Notional RCONS594,
principal RCONS595,
amounts of RCONS596.
over-the-
counter
derivative
contracts:
Equity.
RC-R, Part II........ M.2.f.......... Notional RCONS597,
principal RCONS598,
amounts of RCONS599.
over-the-
counter
derivative
contracts:
Precious
metals (except
gold).
RC-R, Part II........ M.2.g.......... Notional RCONS600,
principal RCONS601,
amounts of RCONS602.
over-the-
counter
derivative
contracts:.
RC-R, Part II........ M.3.a.......... Notional RCONS603,
principal RCONS604,
amounts of RCONS605.
centrally
cleared
derivative
contracts:
Interest rate.
[[Page 58452]]
RC-R, Part II........ M.3.b.......... Notional RCONS606,
principal RCONS607,
amounts of RCONS608.
centrally
cleared
derivative
contracts:
Foreign
exchange rate
and gold.
RC-R, Part II........ M.3.c.......... Notional RCONS609,
principal RCONS610,
amounts of RCONS611.
centrally
cleared
derivative
contracts:
Credit
(investment
grade
reference
asset).
RC-R, Part II........ M.3.d.......... Notional RCONS612,
principal RCONS613,
amounts of RCONS614.
centrally
cleared
derivative
contracts:
Credit (non-
investment
grade
reference
asset).
RC-R, Part II........ M.3.e.......... Notional RCONS615,
principal RCONS616,
amounts of RCONS617.
centrally
cleared
derivative
contracts:
Equity.
RC-R, Part II........ M.3.f.......... Notional RCONS618,
principal RCONS619,
amounts of RCONS620.
centrally
cleared
derivative
contracts:
Precious
metals (except
gold).
RC-R, Part II........ M.3.g.......... Notional RCONS621,
principal RCONS622,
amounts of RCONS623.
centrally
cleared
derivative
contracts:
Other.
------------------------------------------------------------------------
The following data items on Schedule RC-T are currently
collected on the FFIEC 051 quarterly for institutions with total
fiduciary assets greater than $250 million (as of the preceding
December 31) or with gross fiduciary and related services income
greater than 10 percent of revenue (net interest income plus
noninterest income) for the preceding calendar year.
The data items are proposed to be collected semiannually in the
June and December reports only for institutions with total fiduciary
assets greater than $250 million but less than or equal to $1
billion (as of the preceding December 31) that do not meet the
fiduciary income test for quarterly reporting.
------------------------------------------------------------------------
Schedule Item Item name MDRM No.(s)
------------------------------------------------------------------------
RC-T................. 4.............. Fiduciary and RCONB868,
Related RCONB869,
Assets: RCONB870,
Personal trust RCONB871.
and agency
accounts.
RC-T................. 5.a............ Fiduciary and RCONB872,
Related RCONB873,
Assets: RCONB874,
Employee RCONB875.
benefit--defin
ed
contribution.
RC-T................. 5.b............ Fiduciary and RCONB876,
Related RCONB877,
Assets: RCONB878,
Employee RCONB879.
benefit--defin
ed benefit.
RC-T................. 5.c............ Fiduciary and RCONB880,
Related RCONB881,
Assets: Other RCONB882,
employee RCONB883.
benefit and
retirement-
related
accounts.
RC-T................. 6.............. Fiduciary and RCONB884,
Related RCONB885,
Assets: RCONC001,
Corporate RCONC002.
trust and
agency
accounts.
RC-T................. 7.............. Fiduciary and RCONB886,
Related RCONB888,
Assets: RCONJ253,
Investment RCONJ254.
management and
investment
advisory
agency
accounts.
RC-T................. 8.............. Fiduciary and RCONJ255,
Related RCONJ256,
Assets: RCONJ257,
Foundation and RCONJ258.
endowment
trust and
agency
accounts.
RC-T................. 9.............. Fiduciary and RCONB890,
Related RCONB891,
Assets: Other RCONB892,
fiduciary RCONB893.
accounts.
RC-T................. 10............. Fiduciary and RCONB894,
Related RCONB895,
Assets: Total RCONB896,
fiduciary RCONB897.
accounts.
RC-T................. 11............. Fiduciary and RCONB898,
Related RCONB899.
Assets:
Custody and
safekeeping
accounts.
RC-T................. 13............. Fiduciary and RCONJ259,
Related RCONJ260,
Assets: RCONJ261,
Individual RCONJ262.
Retirement
Accounts,
Health Savings
Accounts, and
other similar
accounts
(included in
items 5.c and
11).
RC-T................. 14............. Fiduciary and RIADB904.
Related
Services
Income:
Personal trust
and agency
accounts.
RC-T................. 15.a........... Fiduciary and RIADB905.
Related
Services
Income:
Employee
benefit--defin
ed
contribution.
RC-T................. 15.b........... Fiduciary and RIADB906.
Related
Services
Income:
Employee
benefit--defin
ed benefit.
RC-T................. 15.c........... Fiduciary and RIADB907.
Related
Services
Income: Other
employee
benefit and
retirement-
related
accounts.
[[Page 58453]]
RC-T................. 16............. Fiduciary and RIADA479.
Related
Services
Income:
Corporate
trust and
agency
accounts.
RC-T................. 17............. Fiduciary and RIADJ315.
Related
Services
Income:
Investment
management and
investment
advisory
agency
accounts.
RC-T................. 18............. Fiduciary and RIADJ316.
Related
Services
Income:
Foundation and
endowment
trust and
agency
accounts.
RC-T................. 19............. Fiduciary and RIADA480.
Related
Services
Income: Other
fiduciary
accounts.
RC-T................. 20............. Fiduciary and RIADB909.
Related
Services
Income:
Custody and
safekeeping
accounts.
RC-T................. 21............. Fiduciary and RIADB910.
Related
Services
Income: Other
fiduciary and
related
services
income.
RC-T................. 22............. Fiduciary and RIAD4070.
Related
Services
Income: Total
gross
fiduciary and
related
services
income.
RC-T................. M.3.a.......... Collective RCONB931,
investment RCONB932.
funds and
common trust
funds:
Domestic
equity.
RC-T................. M.3.b.......... Collective RCONB933,
investment RCONB934.
funds and
common trust
funds:
International/
Global equity.
RC-T................. M.3.c.......... Collective RCONB935,
investment RCONB936.
funds and
common trust
funds: Stock/
Bond blend.
RC-T................. M.3.d.......... Collective RCONB937,
investment RCONB938.
funds and
common trust
funds: Taxable
bond.
RC-T................. M.3.e.......... Collective RCONB939,
investment RCONB940.
funds and
common trust
funds:
Municipal bond.
RC-T................. M.3.f.......... Collective RCONB941,
investment RCONB942.
funds and
common trust
funds: Short-
term
investments/
Money market.
RC-T................. M.3.g.......... Collective RCONB943,
investment RCONB944.
funds and
common trust
funds:
Specialty/
Other.
RC-T................. M.3.h.......... Collective RCONB945,
investment RCONB946.
funds and
common trust
funds: Total
collective
investment
funds.
------------------------------------------------------------------------
Appendix B: Data Items To Be Collected From Institutions With $1
Billion or More in Total Assets on the FFIEC 051.
The following data item is currently collected on the FFIEC 041
from institutions with $1 billion or more in total assets. The data
item is proposed to be reported quarterly by institutions with $1
billion or more in total assets on the FFIEC 051.
------------------------------------------------------------------------
Schedule Item Item name MDRM No.
------------------------------------------------------------------------
RC-O................. M.2............ Estimated RCON5597.
amount of
uninsured
deposits,
including
related
interest
accrued and
unpaid.
------------------------------------------------------------------------
The following data items are currently collected quarterly on
the FFIEC 041 from institutions with $1 billion or more in total
assets. The data items are proposed to be reported on the FFIEC 051
by institutions with $1 billion or more in total assets with a
reduction in the frequency of collection.
Semiannual Reporting (June and December only)
------------------------------------------------------------------------
Schedule Item Item name MDRM No.(s)
------------------------------------------------------------------------
RI-C *............... 1.a............ Construction TBD (2 New MDRM
loans. Numbers)
RI-C *............... 1.b............ Commercial real TBD (2 New MDRM
estate loans. Numbers)
RI-C *............... 1.c............ Residential TBD (2 New MDRM
real estate Numbers)
loans.
RI-C *............... 2.............. Commercial TBD (2 New MDRM
loans. Numbers)
RI-C *............... 3.............. Credit cards... TBD (2 New MDRM
Numbers)
RI-C *............... 4.............. Other consumer TBD (2 New MDRM
loans. Numbers)
RI-C *............... 5.............. Unallocated, if TBD (1 New MDRM
any. Number)
[[Page 58454]]
RI-C *............... 6.............. Total.......... TBD (2 New MDRM
Numbers)
------------------------------------------------------------------------
* The FFIEC 041 Schedule RI-C collects disaggregated data on the
allowance for loan and lease losses by loan category and the related
recorded investment based on whether the reported allowance relates to
loans that are individually impaired, purchased credit-impaired, or
collectively evaluated for impairment in six columns. The proposed
Schedule RI-C for the FFIEC 051 will consolidate the disaggregated
data into two columns: ``Recorded Investment'' (column A) and
``Allowance Balance'' (column B).
Effective June 30, 2021, the column captions would be changed to
``Amortized Cost'' (column A) and ``Allowance for Credit Losses''
(ACL) (column B). From June 30, 2019, through December 31, 2020,
institutions that have adopted Accounting Standards Update No. 2016-
13, ``Financial Instruments--Credit Losses (Topic 326): Measurement of
Credit Losses on Financial Instruments'' (ASU 2016-13) would report
the amortized cost and related ACL by loan category in columns A and
B, respectively. From June 30, 2021, through December 31, 2022,
institutions that have not adopted ASU 2016-13 would report the
recorded investment and related allowance balance by loan category in
columns A and B, respectively.
Annual Reporting (December only)
------------------------------------------------------------------------
Schedule Item Item name MDRM No.(s)
------------------------------------------------------------------------
RI **................ M.15.a......... Consumer RIADH032.
overdraft-
related
service
charges levied
on those
transaction
account and
nontransaction
savings
account
deposit
products
intended
primarily for
individuals
for personal,
household, or
family use.
RI **................ M.15.b......... Consumer RIADH033.
account
periodic
maintenance
charges levied
on those
transaction
account and
nontransaction
savings
account
deposit
products
intended
primarily for
individuals
for personal,
household, or
family use.
RI **................ M.15.c......... Consumer RIADH034.
customer
automated
teller machine
(ATM) fees
levied on
those
transaction
account and
nontransaction
savings
account
deposit
products
intended
primarily for
individuals
for personal,
household, or
family use.
RI **................ M.15.d......... All other RIADH035.
service
charges on
deposit
accounts.
RC-E **.............. M.6.a.......... Total deposits RCONP753.
in those
noninterest-
bearing
transaction
account
deposit
products
intended
primarily for
individuals
for personal,
household, or
family use.
RC-E **.............. M.6.b.......... Total deposits RCONP754.
in those
interest-
bearing
transaction
account
deposit
products
intended
primarily for
individuals
for personal,
household, or
family use.
RC-E **.............. M.7.a.(1)...... Total deposits RCONP756.
in those MMDA
deposit
products
intended
primarily for
individuals
for personal,
household, or
family use.
RC-E **.............. M.7.a.(2)...... Deposits in all RCONP757.
other MMDAs of
individuals,
partnerships,
and
corporations.
RC-E **.............. M.7.b.(1)...... Total deposits RCONP758.
in those other
savings
deposit
account
deposit
products
intended
primarily for
individuals
for personal,
household, or
family use.
RC-E **.............. M.7.b.(2)...... Deposits in all RCONP759.
other savings
deposit
accounts of
individuals,
partnerships,
and
corporations.
------------------------------------------------------------------------
** Items are to be completed by institutions with $1 billion or more in
total assets that answered ``Yes'' to Schedule RC-E, Memorandum item
5.
The following data items are currently being proposed to be
collected quarterly on the FFIEC 041 by those institutions with $1
billion or more in total assets that have adopted ASU 2016-13.\53\
---------------------------------------------------------------------------
\53\ See 83 FR 49160 (September 28, 2018).
---------------------------------------------------------------------------
For this proposal, the data items are proposed to be reported on
the FFIEC 051 by institutions with $1 billion or more in total
assets that have adopted ASU 2016-13 with a reduction in the
frequency of collection.
Semiannual Reporting (June and December only)
[[Page 58455]]
------------------------------------------------------------------------
Schedule Item Item name MDRM No.(s)
------------------------------------------------------------------------
RI-C................. 7.............. Held-to- TBD (1 New MDRM
Maturity: Number).
Securities
issued by
states and
political
subdivisions
in the U.S..
RI-C................. 8.a............ Held-to- TBD (1 New MDRM
Maturity: Number).
Mortgage-
backed
securities
issued or
guaranteed by
U.S.
Government
agencies or
sponsored
agencies.
RI-C................. 8.b............ Held-to- TBD (1 New MDRM
Maturity: Number).
Other mortgage-
backed
securities.
RI-C................. 9.............. Held-to- TBD (1 New MDRM
Maturity: Number).
Asset-backed
securities and
structured
financial
products.
RI-C................. 10............. Held-to- TBD (1 New MDRM
Maturity: Number).
Other debt
securities.
RI-C................. 11............. Held-to- TBD (1 New MDRM
Maturity: Number).
Total.
------------------------------------------------------------------------
List of Subjects
12 CFR Part 52
Banks, banking, Reporting and recordkeeping requirements.
12 CFR Part 208
Accounting, Agriculture, Banks, banking, Confidential business
information, Consumer protection, Currency, Insurance, Investments,
Mortgages, Reporting and recordkeeping requirements, Securities
12 CFR Part 304
Bank deposit insurance, Banks, banking, Freedom of information,
Reporting and recordkeeping requirements.
Office of the Comptroller of the Currency
0
For the reasons set out in the joint preamble, the OCC proposes to add
12 CFR part 52 as follows:
PART 52--REGULATORY REPORTING
Sec.
52.1 Authority and purpose.
Sec. 52.2 Definitions.
Sec. 52.3 Reduced reporting.
Sec. 52.4 Reservation of authority.
Authority: 12 U.S.C. 93a, 161, 1463(a), 1464(v), and
1817(a)(12).
Sec. 52.1 Authority and purpose.
(a) Authority. This part is issued pursuant to 12 U.S.C. 93a, 161,
1463(a), 1464(v), and 1817(a)(12).
(b) Purpose. This part establishes a reduced reporting requirement
for a covered depository institution making its reports of condition
for the first and third calendar quarters of a year.
Sec. 52.2 Definitions.
Covered depository institution means:
A national bank, Federal savings association, or insured Federal
branch that meets the following criteria:
(1) Has less than $5 billion in total consolidated assets as
reported in its report of condition for the second calendar quarter of
the preceding year;
(2) Has no foreign offices, as defined in this subpart;
(3) Is not required to or has not elected to use 12 CFR part 3,
subpart E (for advanced approaches banks) to calculate its risk-based
capital requirements;
(4) Is not a large institution or highly complex institution, as
such terms are defined in 12 CFR 327.8, or treated as a large
institution, as requested under 12 CFR 327.16(f); and
(5) Is not subject to the filing requirements for the FFIEC 002
report of condition.
Foreign country refers to one or more foreign nations, and includes
the overseas territories, dependencies, and insular possessions of
those nations and of the United States.
Foreign office means:
(1) A branch or consolidated subsidiary in a foreign country,
unless the branch is located on a U.S. military facility;
(2) An international banking facility as such term is defined in 12
CFR 204.8;
(3) A majority-owned Edge Act or Agreement subsidiary as defined in
12 CFR 28.2, including both its U.S. and its foreign offices; and
(4) For an institution chartered or headquartered in any U.S. state
or the District of Columbia, a branch or consolidated subsidiary
located in a U.S. territory or possession.
Report of condition means the FFIEC 031, FFIEC 041, or FFIEC 051
versions of the Consolidated Report of Condition and Income (Call
Report) or the FFIEC 002 (Report of Assets and Liabilities of U.S.
Branches and Agencies of Foreign Banks), as applicable, and as they may
be amended or superseded from time to time in accordance with the
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
Total consolidated assets means total assets as reported in an
institution's report of condition.
Sec. 52.3 Reduced reporting.
A covered depository institution may file the FFIEC 051 version of
the Call Report, or any successor thereto, to satisfy its requirement
to file a report of condition for the first and third calendar quarters
of a year.
Sec. 52.4 Reservation of authority.
The OCC may determine that a covered depository institution shall
not use the reduced reporting in Sec. 52.3. In making this
determination, the OCC will consider whether the institution is
significantly engaged in complex, specialized, or higher risk
activities, for which a reduced reporting requirement would not provide
sufficient information. The institution has 30 days following
notification from the OCC to inform the OCC, in writing, of why it
should continue to be eligible to use reduced reporting or cannot cease
using reduced reporting in the OCC's proposed timeframe. The OCC will
make a final decision after reviewing any response. Nothing in this
part shall be construed to limit the OCC's authority to obtain
information from a covered depository institution.
FEDERAL RESERVE SYSTEM
Authority and Issuance
For the reasons set forth in the joint preamble, the Board proposes
to amend 12 CFR part 208 as follows:
PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL
RESERVE SYSTEM (REGULATION H)
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1. The authority citation of part 208 is amended to read as follows:
Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a,
371d, 461, 481-486, 601, 611, 1814, 1816, 1817(a)(3), 1817(a)(12),
[[Page 58456]]
1818, 1820(d)(9), 1833(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1,
1831w, 1831x, 1835a, 1882, 2901-2907, 3105, 3310, 3331-3351, 3905-
3909, and 5371; 15 U.S.C. 78b, 78I(b), 78l(i), 780-4(c)(5), 78q,
78q-1, and 78w, 1681s, 1681w, 6801, and 6805; 31 U.S.C. 5318; 42
U.S.C. 4012a, 4104a, 4104b, 4106 and 4128.
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2. Add new subpart K to part 208 to read as follows:
Subpart K--Forms, Instructions and Reports
Sec.
Sec. 208.120 Authority, Purpose, and Scope
Sec. 208.121 Definitions
Sec. 208.122 Reporting
Sec. 208.123 Reduced Reporting
Sec. 208.124 Reservation of Authority
Subpart K--Forms, Instructions and Reports
Sec. 208.120 Authority, Purpose, and Scope
(a) Authority. Subpart K of Regulation H (12 CFR part 208, subpart
K) is issued by the Board under section 7 of the Federal Deposit
Insurance Act, 12 U.S.C. 1817(a)(3) and (12), and section 9 of the
Federal Reserve Act, 12 U.S.C. 324.
(b) Purpose and scope. This subpart informs a state member bank
where it may obtain forms and instructions for reports of conditions
and implements 12 U.S.C. 1817(a)(12) to allow reduced reporting for a
covered depository institution when such institution makes its reports
of condition for the first and third calendar quarters of a year.
Sec. 208.121 Definitions
Covered depository institution means: a state member bank that
meets all of the following criteria:
(1) Has less than $5 billion in total consolidated assets as
reported in its report of condition for the second calendar quarter of
the preceding year;
(2) Has no foreign offices, as defined in this subpart;
(3) Is not required to or has not elected to use 12 CFR part 217,
subpart E to calculate its risk-based capital requirements; and
(4) Is not a large institution or highly complex institution, as
such terms are defined in 12 CFR 327.8, or treated as a large
institution, as requested under 12 CFR 327.16(f).
Foreign country refers to one or more foreign nations, and includes
the overseas territories, dependencies, and insular possessions of
those nations and of the United States.
Foreign office means:
(1) A branch or consolidated subsidiary in a foreign country,
unless the branch is located on a U.S. military facility;
(2) An international banking facility as such term is defined in 12
CFR 204.8;
(3) A majority-owned Edge Act or Agreement subsidiary including
both its U.S. and its foreign offices; and
(4) For an institution chartered or headquartered in any U.S. state
or the District of Columbia, a branch or consolidated subsidiary
located in a U.S. territory or possession.
Report of condition means the FFIEC 031, FFIEC 041, or FFIEC 051
versions of the Consolidated Report of Condition and Income (Call
Report) or the FFIEC 002 (Report of Assets and Liabilities of U.S.
Branches and Agencies of Foreign Banks), as applicable, and as they may
be amended or superseded from time to time in accordance with the
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
Total consolidated assets means total assets as reported in a state
member bank's report of condition.
Sec. 208.122 Reporting
(a) A state member bank is required to file the report of condition
(Call Report) in accordance with the instructions for these reports.
All assets and liabilities, including contingent assets and
liabilities, must be reported in, or otherwise taken into account in
the preparation of, the Call Report. The Board uses Call Report data to
monitor the condition, performance, and risk profile of individual
state member banks and the banking industry. Reporting state member
banks must also submit annually such information on small business and
small farm lending as the Board may need to assess the availability of
credit to these sectors of the economy. The report forms and
instructions can be obtained from Federal Reserve District Banks or
through the website of the Federal Financial Institutions Examination
Council, https://www.ffiec.gov/.
(b) Every insured U.S. branch of a foreign bank is required to file
the FFIEC 002 version of the report of condition (Report of Assets and
Liabilities of U.S. Branches and Agencies of Foreign Banks) in
accordance with the instructions for the report. All assets and
liabilities, including contingent assets and liabilities, must be
reported in, or otherwise taken into account in the preparation of the
report. The Board uses the reported data to monitor the condition,
performance, and risk profile of individual insured branches and the
banking industry. Insured branches must also submit annually such
information on small business and small farm lending as the Board may
need to assess the availability of credit to these sectors of the
economy. The report forms and instructions can be obtained from Federal
Reserve District Banks or through the website of the Federal Financial
Institutions Examination Council, https://www.ffiec.gov/.
Sec. 208.123 Reduced Reporting
A covered depository institution may file the FFIEC 051 version of
the report of condition, or any successor thereto, which shall provide
for reduced reporting for the reports of condition for the first and
third calendar quarters for a year.
Sec. 208.124 Reservation of Authority
(a) Notwithstanding Sec. 208.123, the Board in consultation with
the applicable state chartering authority may require an otherwise
eligible covered depository institution to file the FFIEC 041 version
of the report of condition, or any successor thereto, based on an
institution-specific determination. In making this determination, the
Board may consider criteria including, but not limited to, whether the
institution is significantly engaged in one or more complex,
specialized, or other higher risk activities, such as those for which
limited information is reported in the FFIEC 051 version of the report
of condition compared to the FFIEC 041 version of the report of
condition. Nothing in this part shall be construed to limit the Board's
authority to obtain information from a state member bank.
(b) Nothing in this subpart limits the authority of the Board under
any other provision of law or regulation to take supervisory or
enforcement action, including action to address unsafe or unsound
practices or conditions or violations of law.
Federal Deposit Insurance Corporation
12 CFR CHAPTER III
Authority and Issuance
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For the reasons set forth in the preamble, the Federal Deposit
Insurance Corporation proposes to amend 12 CFR part 304 to read as
follows:
PART 304--FORMS, INSTRUCTIONS, AND REPORTS
Contents
Subpart A--In General
Sec. 304.1 Purpose.
Sec. 304.2 Where to obtain forms and instructions.
Sec. 304.3 Reports.
Sec. 304.4-304.10 [Reserved].
Subpart B--Implementation of Reduced Reporting Requirement
Sec. 304.11 Authority, purpose and scope.
Sec. 304.12 Definitions.
Sec. 304.13 Reduced reporting.
[[Page 58457]]
Sec. 304.14 Reservation of authority.
Authority: 5 U.S.C. 552; 12 U.S.C. 1464, 1817, 1831, 1867.
Subpart A--In General
Sec. 304.1 Purpose.
Part 304 informs the public where it may obtain forms and
instructions for reports, applications, and other submittals used by
the FDIC, and also describes certain forms that are not described
elsewhere in FDIC regulations.
Sec. 304.2 Where to obtain forms and instructions.
Forms and instructions used in connection with applications,
reports, and other submittals used by the FDIC can be obtained by
contacting the FDIC Public Information Center (550 17th Street NW,
Washington, DC 20429; telephone: (877) 275-3342 or (703) 562-2200),
except as noted below in Sec. 304.3. In addition, many forms and
instructions can be obtained from FDIC regional offices. A list of FDIC
regional offices can be obtained from the FDIC Public Information
Center, or found at the FDIC's website at https://www.fdic.gov, or in
the directory of FDIC Law, Regulations, Related Acts published by the
FDIC.
Sec. 304.3 Reports.
(a) Consolidated Reports of Condition and Income, Forms FFIEC 031,
041, and 051. Pursuant to section 7(a) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(a)) and other applicable law, every insured
depository institution is required to file Consolidated Reports of
Condition and Income (also known as the Call Report) in accordance with
the instructions for these reports. All assets and liabilities,
including contingent assets and liabilities, must be reported in, or
otherwise taken into account in the preparation of, the Call Report.
The FDIC uses Call Report data from all insured depository institutions
to calculate deposit insurance assessments and monitor the condition,
performance, and risk profile of individual banks and the banking
industry. Reporting banks must also submit annually such information on
small business and small farm lending as the FDIC may need to assess
the availability of credit to these sectors of the economy. The report
forms and instructions can be obtained from the Division of Insurance
and Research (DIR), FDIC, 550 17th Street NW, Washington, DC 20429 or
through the website of the Federal Financial Institutions Examination
Council, https://www.ffiec.gov/.
(Approved by the Office of Management and Budget under control number
3064-0052)
(b) Report of Assets and Liabilities of U.S. Branches and Agencies
of Foreign Banks, Form FFIEC 002. Pursuant to section 7(a) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(a)) and other applicable
law, every insured U.S. branch of a foreign bank is required to file a
Report of Assets and Liabilities of U.S. Branches and Agencies of
Foreign Banks in accordance with the instructions for the report. All
assets and liabilities, including contingent assets and liabilities,
must be reported in, or otherwise taken into account in the preparation
of the report. The FDIC uses the reported data to calculate deposit
insurance assessments and monitor the condition, performance, and risk
profile of individual insured branches and the banking industry.
Insured branches must also submit annually such information on small
business and small farm lending as the FDIC may need to assess the
availability of credit to these sectors of the economy. Because the
Board of Governors of the Federal Reserve System collects and processes
this report on behalf of the FDIC, the report forms and instructions
can be obtained from Federal Reserve District Banks or through the
website of the Federal Financial Institutions Examination Council,
https://www.ffiec.gov/.
(Approved by the Office of Management and Budget under control
number 7100-0032)
(c) Summary of Deposits, Form FDIC 8020/05. Form 8020/05 is a
report on the amount of deposits for each authorized office of an
insured depository institution with branches; institutions with only a
main office are exempt from reporting. Reports as of June 30 of each
year must be submitted no later than the immediately succeeding July
31. The report forms and the instructions for completing the reports
will be furnished to all such banks by, or may be obtained upon request
from, the Division of Insurance and Research (DIR), FDIC, 550 17th
Street NW, Washington, DC 20429.
(Approved by the Office of Management and Budget under control
number 3064-0061)
(d) Notification of Performance of Bank Services, Form FDIC 6120/
06. Pursuant to Section 7 of the Bank Service Company Act (12 U.S.C.
1867), as amended, FDIC-supervised banks must notify the agency about
the existence of a service relationship within thirty days after the
making of the contract or the performance of the service, whichever
occurs first. Form FDIC 6120/06 may be used to satisfy the notice
requirement. The form contains identification, location and contact
information for the bank, the servicer, and a description of the
services provided. In lieu of the form, notification may be provided by
letter. Either the form or the letter containing the notice information
must be submitted to the regional director--Division of Risk Management
Supervision (RMS) of the region in which the bank's main office is
located.
(Approved by the Office of Management and Budget under control
number 3064-0029)
Subpart B--Implementation of Reduced Reporting Requirement
Authority: 12 U.S.C. 1464(v), 1817(a), and 1819 Tenth.
Sec. 304.11 Authority, purpose, and scope.
(a) Authority. This subpart is issued pursuant to 12 U.S.C.
1464(v), and sections 7 (12 U.S.C. 1817(a)(12)) and section 9 (12
U.S.C. 1819 Tenth) of the Federal Deposit Insurance Act.
(b) Purpose. This subpart implements 12 U.S.C. 1817(a)(12) to allow
reduced reporting for a covered depository institution when such
institution makes its reports of condition for the first and third
calendar quarters of a year.
(c) Scope. This subpart applies to an insured depository
institution, as that term is defined in section 3(c) of the Federal
Deposit Insurance Act, 12 U.S.C. 1813(c), that meets the definition of
a covered depository institution under section 304.12.
(d) Preservation of authority. Nothing in this subpart in any way
limits the authority of the Corporation under other provisions of
applicable law and regulation.
Sec. 304.12 Definitions.
(a) Covered depository institution means an insured depository
institution, as such term is defined in section 3 of the Federal
Deposit Insurance Act, 12 U.S.C. 1813, for which the Corporation is the
appropriate Federal banking agency and that meets all of the following
criteria:
(1) Has less than $5 billion in total consolidated assets as
reported in its report of condition for the second calendar quarter of
the preceding year;
(2) Has no foreign offices, as defined in this subpart;
(3) Is not required to or has not elected to use 12 CFR part 324,
subpart E to calculate its risk-based capital requirements;
(4) Is not a large institution or highly complex institution, as
such terms are
[[Page 58458]]
defined in 12 CFR 327.8, or treated as a large institution, as
requested under 12 CFR 327.16(f); and
(5) Is not a state-licensed insured branch of a foreign bank, as
such terms are defined in section 3(s) of the Federal Deposit Insurance
Act, 12 U.S.C. 1813(s).
(b) Foreign country refers to one or more foreign nations, and
includes the overseas territories, dependencies, and insular
possessions of those nations and of the United States.
(c) Foreign office means:
(1) A branch or consolidated subsidiary in a foreign country,
unless the branch is located on a U.S. military facility;
(2) An international banking facility as such term is defined in 12
CFR 204.8;
(3) A majority-owned Edge Act or Agreement subsidiary including
both its U.S. and its foreign offices; and
(4) For an institution chartered or headquartered in any U.S. state
or the District of Columbia, a branch or consolidated subsidiary
located in a U.S. territory or possession.
(d) Report of condition means the FFIEC 031, FFIEC 041, or FFIEC
051 versions of the Consolidated Report of Condition and Income (Call
Report) or the FFIEC 002 (Report of Assets and Liabilities of U.S.
Branches and Agencies of Foreign Banks), as applicable, and as they may
be amended or superseded from time to time in accordance with the
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
(e) Total consolidated assets means total assets as reported in an
insured depository institution's report of condition.
Sec. 304.13 Reduced reporting.
A covered depository institution may file the FFIEC 051 version of
the report of condition, or any successor thereto, which shall provide
for reduced reporting for the reports of condition for the first and
third calendar quarters for a year.
Sec. 304.14 Reservation of authority.
Notwithstanding Sec. 304.13, the Corporation, in consultation with
the applicable state chartering authority, may require an otherwise
eligible covered depository institution to file the FFIEC 041 version
of the report of condition, or any successor thereto, based on an
institution-specific determination. In making this determination, the
Corporation may consider criteria including, but not limited to,
whether the institution is significantly engaged in one or more
complex, specialized, or other higher-risk activities, such as those
for which limited information is reported in the FFIEC 051 version of
the report of condition compared to the FFIEC 041 version of the report
of condition. Nothing in this part shall be construed to limit the
Corporation's authority to obtain information from insured depository
institutions.
Dated: November 5, 2018.
Joseph M. Otting,
Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System, October 30, 2018.
Ann E. Misback,
Secretary of the Board.
Dated at Washington, DC, on October 17, 2018.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018-24587 Filed 11-16-18; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P
