Agency Information Collection Activities; Submission for OMB Review; Comment Request, 74784-74792 [2020-25743]

Download as PDF 74784 Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices The associated collection of information is summarized below. CFR section 273.5(b)—Ridership data. 273.5(c)—Certified schedule. Total ................... Title: Metrics and Minimum Standards for Intercity Passenger Rail Service. Respondent universe 1 railroad ................... 12 1 1 railroad ................... 7 1 1 railroad ................... 19 1 Form Numbers: n/a. Respondent Universe: 1 (Amtrak). Frequency of Submission: varied; monthly; yearly. Total Annual Responses: 19. Total Estimated Annual Burden: 49 hours. Total Cost Equivalent: $3,796. Under 44 U.S.C. 3507(a) and 5 CFR 1320.5(b) and 1320.8(b)(3)(vi), FRA informs all interested parties that a respondent is not required to respond to, conduct or sponsor a collection of information unless it displays a currently valid OMB control number. Authority: 44 U.S.C. 3501–3520. Brett A. Jortland, Deputy Chief Counsel. [FR Doc. 2020–25835 Filed 11–20–20; 8:45 am] BILLING CODE 4910–06–P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency FEDERAL RESERVE SYSTEM FEDERAL DEPOSIT INSURANCE CORPORATION Agency Information Collection Activities; Submission for OMB Review; Comment Request Office of the Comptroller of the Currency (OCC), Treasury; Board of Governors of the Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC). ACTION: Joint notice and request for comment. AGENCY: In accordance with the requirements of the Paperwork SUMMARY: 2 The total cost equivalent is derived from the Surface Transportation Board’s Full Year Wage A&B data series using the appropriate employee group hourly wage rate that includes a 75-percent overhead charge. VerDate Sep<11>2014 Average time per responses (hour) Total annual responses 17:07 Nov 20, 2020 Jkt 253001 Reporting Burden: Total annual burden hours 22 hours (10 hour start-up burden + average response time). 27 hours (20 hour start-up burden + average response time). $1,704 49 hours ....................................................... 3,796 Reduction Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. On July 22, 2020, the agencies, under the auspices of the Federal Financial Institutions Examination Council (FFIEC), requested public comment for 60 days on a proposal to revise and extend the Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC 051) and the Regulatory Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework (FFIEC 101), which are currently approved collections of information. In the July 2020 notice, the Board, under the auspices of the FFIEC, also requested public comment for 60 days on a proposal to revise and extend the Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002) and the Report of Assets and Liabilities of a Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or Agency of a Foreign (NonU.S.) Bank (FFIEC 002S), which also are currently approved collections of information. The Board published this proposal on behalf of the agencies. Finally, on October 4, 2019, the agencies, under the auspices of the FFIEC, requested public comment for 60 days on proposed Call Report and FFIEC 101 revisions to implement the agencies’ proposed total loss absorbing capacity (TLAC) investments rule for advanced approaches banking organizations. The comment period for the July 2020 notice ended on September 21, 2020. The comment period for the October 2019 notice ended on December 3, 2019, and the agencies subsequently adopted a TLAC investments final rule. As described in the SUPPLEMENTARY INFORMATION section, after considering the comments received on the two notices, the agencies are proceeding PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 Total cost equivalent 2 2,092 with the proposed revisions to the reporting forms and instructions for the Call Reports, FFIEC 101, and FFIEC 002 with certain modifications. The SUPPLEMENTARY INFORMATION section also discusses certain Call Report instructional clarifications. The agencies hereby give notice of their plan to submit to OMB a request to approve the revision and extension of these information collections, and again invite comment on the renewal. DATES: Comments must be submitted on or before December 23, 2020. ADDRESSES: Interested parties are invited to submit written comments to any or all of the agencies. All comments, which should refer to the ‘‘Call Report, FFIEC 101, and FFIEC 002 Revisions,’’ will be shared among the agencies. Written comments and recommendations for the proposed information collections should be sent within 30 days of publication of this notice to www.reginfo.gov/public/do/ PRAMain. You may find these particular information collections by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. OCC: You may submit comments, which should refer to ‘‘Call Report, FFIEC 101, and FFIEC 002 Revisions,’’ by any of the following methods: • Email: prainfo@occ.treas.gov. • Mail: Chief Counsel’s Office, Office of the Comptroller of the Currency, Attention: 1557–0081 and 1557–0239, 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 ‘‘1557– 0081 and 1557–0239’’ in your comment. In general, the OCC will publish comments on www.reginfo.gov without change, including any business or personal information provided, such as name and address information, email addresses, or phone numbers. Comments received, including E:\FR\FM\23NON1.SGM 23NON1 Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices 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 information collection beginning on the date of publication of the second notice for this collection by the following method: • Viewing Comments Electronically: Go to www.reginfo.gov. Click on the ‘‘Information Collection Review’’ tab. Underneath the ‘‘Currently under Review’’ section heading, from the dropdown menu select ‘‘Department of Treasury’’ and then click ‘‘submit.’’ This information collection can be located by searching by OMB control number ‘‘1557–0081’’ or ‘‘1557–0239.’’ Upon finding the appropriate information collection, click on the related ‘‘ICR Reference Number.’’ On the next screen, select ‘‘View Supporting Statement and Other Documents’’ and then click on the link to any comment listed at the bottom of the screen. • For assistance in navigating www.reginfo.gov, please contact the Regulatory Information Service Center at (202) 482–7340. Board: You may submit comments, which should refer to ‘‘Call Report, FFIEC 101, and FFIEC 002 Revisions,’’ by any of the following methods: • Agency Website: http:// www.federalreserve.gov. Follow the instructions for submitting comments at: http://www.federalreserve.gov/ generalinfo/foia/ProposedRegs.cfm. • Email: regs.comments@ federalreserve.gov. Include ‘‘Call Report, FFIEC 101, and FFIEC 002 Revisions’’ in the subject line of the message. • Fax: (202) 452–3819 or (202) 452– 3102. • Mail: Ann E. Misback, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 20551. All public comments are available on the Board’s website at https:// www.federalreserve.gov/apps/foia/ proposedregs.aspx as submitted, unless modified for technical reasons. Accordingly, your comments will not be edited to remove any identifying or contact information. FDIC: You may submit comments, which should refer to ‘‘Call Report, FFIEC 101, and FFIEC 002 Revisions,’’ by any of the following methods: • Agency Website: https:// www.fdic.gov/regulations/laws/federal/. VerDate Sep<11>2014 17:07 Nov 20, 2020 Jkt 253001 Follow the instructions for submitting comments on the FDIC’s website. • Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments. • Email: comments@FDIC.gov. Include ‘‘Call Report, FFIEC 101, and FFIEC 002 Revisions’’ in the subject line of the message. • Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB–3128, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. • Hand Delivery: Comments may be hand delivered to the guard station at the rear of the 550 17th Street Building (located on F Street) on business days between 7:00 a.m. and 5:00 p.m. • Public Inspection: All comments received will be posted without change to https://www.fdic.gov/regulations/ laws/federal/ including any personal information provided. Paper copies of public comments may be requested from the FDIC Public Information Center by telephone at (877) 275–3342 or (703) 562–2200. Additionally, commenters may send a copy of their comments to the OMB desk officers for the agencies by mail to the Office of Information and Regulatory Affairs, U.S. Office of Management and Budget, New Executive Office Building, Room 10235, 725 17th Street NW, Washington, DC 20503; by fax to (202) 395–6974; or by email to oira_ submission@omb.eop.gov. FOR FURTHER INFORMATION CONTACT: For further information about the proposed revisions to the information collections discussed in this notice, please contact any of the agency staff whose names appear below. In addition, copies of the report forms for the Call Reports, FFIEC 101, FFIEC 002, and FFIEC 002S can be obtained at the FFIEC’s website (https:// www.ffiec.gov/ffiec_report_forms.htm). OCC: Kevin Korzeniewski, Counsel, Chief Counsel’s Office, (202) 649–5490, or for persons who are deaf or hearing impaired, TTY, (202) 649–5597. Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer, (202) 452–3884, Office of the Chief Data Officer, Board of Governors of the Federal Reserve System, 20th and C Streets NW, Washington, DC 20551. Telecommunications Device for the Deaf (TDD) users may call (202) 263–4869. FDIC: Manuel E. Cabeza, Counsel, (202) 898–3767, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. SUPPLEMENTARY INFORMATION: Table of Contents I. Affected Reports PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 74785 II. Current Actions A. Introduction B. Comments Received on the July 2020 Proposed Call Report, FFIEC 101, and FFIEC 002 Revisions 1. Board Regulation D Amendments 2. Provisions for Credit Losses on OffBalance-Sheet Credit Exposures 3. Other Comments Received C. Comments Received on Revisions Related to the Total Loss Absorbing Capacity Investments Rule D. Additional Instructional Matters 1. Uncollectible Accrued Interest Receivable Under ASC Topic 326 2. Shared Fees and Commissions From Securities-Related and Insurance Activities 3. Pledged Equity Securities III. Timing IV. Request for Comment I. Affected Reports The proposed changes discussed below affect the Call Reports, FFIEC 101, and FFIEC 002. A. Call Reports The agencies propose to extend for three years, with revision, the Call Reports. Report Title: Consolidated Reports of Condition and Income. Form Number: FFIEC 031 (Consolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices), FFIEC 041 (Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only), and FFIEC 051 (Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only and Total Assets Less Than $5 Billion). Frequency of Response: Quarterly. Affected Public: Business or other forprofit. Type of Review: Revision and extension of currently approved collections. OCC OMB Control No.: 1557–0081. Estimated Number of Respondents: 1,111 national banks and federal savings associations. Estimated Average Burden per Response: 41.92 burden hours per quarter to file. Estimated Total Annual Burden: 186,292 burden hours to file. Board OMB Control No.: 7100–0036. Estimated Number of Respondents: 739 state member banks. Estimated Average Burden per Response: 45.40 burden hours per quarter to file. Estimated Total Annual Burden: 134,202 burden hours to file. E:\FR\FM\23NON1.SGM 23NON1 74786 Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices FDIC OMB Control No.: 3064–0052. Estimated Number of Respondents: 3,263 insured state nonmember banks and state savings associations. Estimated Average Burden per Response: 39.96 burden hours per quarter to file. Estimated Total Annual Burden: 521,558 burden hours to file. The estimated average burden hours collectively reflect the estimates for the FFIEC 051, the FFIEC 041, and the FFIEC 031 reports for each agency. When the estimates are calculated by type of report across the agencies, the estimated average burden hours per quarter are 35.27 (FFIEC 051), 55.20 (FFIEC 041), and 85.81 (FFIEC 031), using data from the June 30, 2020, Call Reports. The estimated burden hours for the currently approved reports, which are based on data as of December 31, 2019, are 37.62 (FFIEC 051), 51.02 (FFIEC 041), and 96.30 (FFIEC 031). These burden estimates reflect the effects of the Call Report revisions related to COVID–19 included in the agencies’ emergency clearance requests that were approved by OMB in the second quarter of 2020 and subsequently included in the July 2020 notice. Thus, the effects of the other revisions included in this notice related to U.S. GAAP, international remittance transfers, and TLAC investments, together with the use of June 30, 2020, data for estimating burden, results in an increase (decrease) in estimated average burden hours per quarter by type of report of (2.35) (FFIEC 051), 4.18 (FFIEC 041), and (10.49) (FFIEC 031) since OMB’s most recent approval of Call Report revisions. The changes in estimated burden primarily are due to three factors. First, the burden estimates in this notice incorporate a decrease of approximately 100 in the number of institutions that file Call Reports used in the agencies’ last estimates that were submitted to OMB. Second, the agencies reduced their prior estimates of the number of institutions that were expected to file the FFIEC 051 Call Report after expanding the eligibility for this version of the Call Report to institutions with between $1 billion and $5 billion in total assets. The agencies originally expected about four fifths of newly eligible institutions to choose to file the FFIEC 051, while the actual adoption rate as of June 30, 2020, was significantly lower at less than one third of newly eligible institutions. Newly eligible institutions that chose not to file the streamlined FFIEC 051 continued to file the more detailed FFIEC 041, so the VerDate Sep<11>2014 17:07 Nov 20, 2020 Jkt 253001 lower than expected percentage of new FFIEC 051 filers resulted in an increase in estimated burden for the FFIEC 041 and a decrease in estimated burden for the FFIEC 051. Third, the agencies reduced the estimated number of qualifying institutions that were expected to opt into the community bank leverage ratio (CBLR) framework for reporting regulatory capital in the Call Reports. The agencies previously expected up to three fifths of institutions with total assets of less than $10 billion would opt into this simplified capital framework, while only two fifths of institutions of this size actually reported under the CBLR framework as of June 30, 2020. The lower than expected percentage of institutions opting into the CBLR framework, and the larger than expected percentage continuing to report under the agencies’ risk-based capital framework, contributed to an increase in estimated burden for both the FFIEC 041 and FFIEC 051 versions of the Call Report. 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). Type of Review: Extension and revision of currently approved collections. Legal Basis and Need for Collections The Call Report information collections are mandatory: 12 U.S.C. 161 (national banks), 12 U.S.C. 324 (state member banks), 12 U.S.C. 1817 (insured state nonmember commercial and savings banks), and 12 U.S.C. 1464 (federal and state savings associations). At present, except for selected data items and text, these information collections are not given confidential treatment. Banks and savings associations submit Call Report data to the agencies each quarter for the agencies’ use in monitoring the condition, performance, and risk profile of individual institutions and the industry as a whole. Call Report data serve a regulatory or public policy purpose by assisting the agencies in fulfilling their shared missions of ensuring the safety and soundness of financial institutions and the financial system and protecting consumer financial rights, as well as agency-specific missions affecting national and state-chartered institutions, such as conducting monetary policy, ensuring financial stability, and PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 administering federal deposit insurance. Call Reports are the source of the most current statistical data available for identifying areas of focus for on-site and off-site examinations. Among other purposes, the agencies use Call Report data in evaluating institutions’ corporate applications, including interstate merger and acquisition applications for which the agencies are required by law to determine whether the resulting institution would control more than 10 percent of the total amount of deposits of insured depository institutions in the United States. Call Report data also are used to calculate institutions’ deposit insurance assessments and national banks’ and federal savings associations’ semiannual assessment fees. B. FFIEC 101 The agencies propose to extend for three years, with revision, the FFIEC 101 report. Report Title: Risk-Based Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework. Form Number: FFIEC 101. Frequency of Response: Quarterly. Affected Public: Business or other forprofit. OCC OMB Control No.: 1557–0239. Estimated Number of Respondents: 5 national banks and federal savings associations. Estimated Time per Response: 674 burden hours per quarter to file for banks and federal savings associations. Estimated Total Annual Burden: 13,480 burden hours to file. Board OMB Control No.: 7100–0319. Estimated Number of Respondents: 4 state member banks; 5 bank holding companies and savings and loan holding companies that complete Supplementary Leverage Ratio (SLR) Tables 1 and 2 only; 9 other bank holding companies and savings and loan holding companies; and 6 intermediate holding companies. Estimated Time per Response: 674 burden hours per quarter to file for state member banks; 3 burden hours per quarter to file for bank holding companies and savings and loan holding companies that complete Supplementary Leverage Ratio (SLR) Tables 1and 2 only; 677 burden hours per quarter to file for other bank holding companies and savings and loan holding companies; and 3 burden hours per quarter to file for intermediate holding companies. Estimated Total Annual Burden: 10,784 burden hours for state member E:\FR\FM\23NON1.SGM 23NON1 Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices banks to file; 60 burden hours for bank holding companies and savings and loan holding companies that complete Supplementary Leverage Ratio (SLR) Tables 1 and 2 only to file; 24,372 burden hours for other bank holding companies and savings and loan holding companies to file; and 72 burden hours for intermediate holding companies to file. FDIC OMB Control No.: 3064–0159. Estimated Number of Respondents: 1 insured state nonmember bank and state savings association. Estimated Time per Response: 674 burden hours per quarter to file. Estimated Total Annual Burden: 2,696 burden hours to file. Type of Review: Extension and revision of currently approved collections. Legal Basis and Need for Collections Each advanced approaches institution 1 is required to report quarterly regulatory capital data on the FFIEC 101. Each top-tier advanced approaches institution and top-tier Category III institution 2 is required to report supplementary leverage ratio information on the FFIEC 101. The FFIEC 101 information collections are mandatory for advanced approaches and top-tier Category III institutions: 12 U.S.C. 161 (national banks), 12 U.S.C. 324 (state member banks), 12 U.S.C. 1844(c) (bank holding companies), 12 U.S.C. 1467a(b) (savings and loan holding companies), 12 U.S.C. 1817 (insured state nonmember commercial and savings banks), 12 U.S.C. 1464 (federal and state savings associations), and 12 U.S.C. 1844(c), 3106, and 3108 (intermediate holding companies). Certain data items in this information collection are given confidential treatment under 5 U.S.C. 552(b)(4) and (8). The agencies use data reported in the FFIEC 101 to assess and monitor the levels and components of each reporting entity’s applicable capital requirements and the adequacy of the entity’s capital under the Advanced Capital Adequacy Framework 3 and the supplementary leverage ratio,4 as applicable; to evaluate the impact of the Advanced Capital Adequacy Framework and the 1 12 CFR 3.100(b) (OCC); 12 CFR 217.100(b) (Board); 12 CFR 324.100(b) (FDIC). 2 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12 CFR 324.2 (FDIC). 3 12 CFR part 3, subpart E (OCC); 12 CFR part 217, subpart E (Board); 12 CFR part 324, subpart E (FDIC). 4 12 CFR 3.10(c)(4) (OCC); 12 CFR 217.10(c)(4) (Board); 12 CFR 324.10(c)(4) (FDIC). VerDate Sep<11>2014 17:07 Nov 20, 2020 Jkt 253001 supplementary leverage ratio, as applicable, on individual reporting entities and on an industry-wide basis and its competitive implications; and to supplement on-site examination processes. The reporting schedules also assist advanced approaches institutions and top-tier Category III institutions in understanding expectations relating to the system development necessary for implementation and validation of the Advanced Capital Adequacy Framework and the supplementary leverage ratio, as applicable. Submitted data that are released publicly will also provide other interested parties with additional information about advanced approaches institutions’ and top-tier Category III institutions’ regulatory capital. C. FFIEC 002 and 002S The Board proposes to extend for three years, with revision, the FFIEC 002 and FFIEC 002S reports. Report Titles: Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks; Report of Assets and Liabilities of a Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or Agency of a Foreign (Non-U.S.) Bank. Form Numbers: FFIEC 002; FFIEC 002S. OMB Control Number: 7100–0032. Frequency of Response: Quarterly. Affected Public: Business or other forprofit. Respondents: All state-chartered or federally-licensed U.S. branches and agencies of foreign banking organizations, and all non-U.S. branches managed or controlled by a U.S. branch or agency of a foreign banking organization. Estimated Number of Respondents: FFIEC 002—209; FFIEC 002S—38. Estimated Average Burden per Response: FFIEC 002—24.87 hours; FFIEC 002S—6.0 hours. Estimated Total Annual Burden: FFEIC 002—20,791 hours; FFIEC 002S— 912 hours. Type of Review: Revision of currently approved collections. Legal Basis and Need for Collection On a quarterly basis, all U.S. branches and agencies of foreign banks are required to file the FFIEC 002, which is a detailed report of condition with a variety of supporting schedules. This information is used to fulfill the supervisory and regulatory requirements of the International Banking Act of 1978. The data are also used to augment the bank credit, loan, and deposit information needed for monetary policy and other public policy purposes. The FFIEC 002S is a supplement to the PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 74787 FFIEC 002 that collects information on assets and liabilities of any non-U.S. branch that is managed or controlled by a U.S. branch or agency of the foreign bank. A non-U.S. branch is managed or controlled by a U.S. branch or agency if a majority of the responsibility for business decisions, including but not limited to decisions with regard to lending or asset management or funding or liability management, or the responsibility for recordkeeping in respect of assets or liabilities for that foreign branch resides at the U.S. branch or agency. A separate FFIEC 002S must be completed for each managed or controlled non-U.S. branch. The FFIEC 002S must be filed quarterly along with the U.S. branch or agency’s FFIEC 002. These information collections are mandatory (12 U.S.C. 3105(c)(2), 1817(a)(1) and (3), and 3102(b)). Except for select sensitive items, the FFIEC 002 is not given confidential treatment; the FFIEC 002S is given confidential treatment (5 U.S.C. 552(b)(4) and (8)). The data from both reports are used for (1) monitoring deposit and credit transactions of U.S. residents; (2) monitoring the impact of policy changes; (3) analyzing structural issues concerning foreign bank activity in U.S. markets; (4) understanding flows of banking funds and indebtedness of developing countries in connection with data collected by the International Monetary Fund and the Bank for International Settlements that are used in economic analysis; and (5) assisting in the supervision of U.S. offices of foreign banks. The Federal Reserve System collects and processes these reports on behalf of all three agencies. II. Current Actions A. Introduction On July 22, 2020, the agencies proposed revisions to the Call Reports, FFIEC 101, and FFIEC 002 related to interim final rules and a final rule issued in response to disruptions related to COVID–19 that revise the agencies’ capital rule, the Board’s regulations on reserve requirements and insider loans, and the FDIC’s deposit insurance assessment regulations. The proposed revisions also resulted from certain sections of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The agencies received emergency approvals from OMB to implement these revisions as of the March 31, June 30, or September 30, 2020, report dates. In addition, the agencies proposed changes to the Call Reports and the FFIEC 002 related to U.S. GAAP in the July 2020 notice. Further, the agencies proposed revisions to the Call Reports E:\FR\FM\23NON1.SGM 23NON1 74788 Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices in that notice to reflect the expiration of the temporary exception for estimated disclosures on international remittance transfers and certain amendments to the Remittance Rule (12 CFR 1005.30 et seq.) recently finalized by the Consumer Financial Protection Bureau (Bureau),5 which is a member of the FFIEC. The comment period for the July 2020 notice ended on September 21, 2020. The agencies received comments on the proposed reporting changes covered in the notice from two entities: A banking trade association and a U.S. government agency. In Section II.B, the agencies provide more detail on the comments received and the changes the agencies are making in response to those comments. While most of the interim final rules were finalized as proposed, there were limited revisions to the Regulatory Capital Rule: Revised Transition for the Current Expected Credit Losses Methodology for Allowances, published in the Federal Register on March 27, 2020 (CECL interim final rule).6 In the agencies’ final rule on this subject, published in the Federal Register on September 30, 2020,7 banking organizations that ‘‘early adopted’’ the current expected credit losses (CECL) methodology during 2020 were permitted to also use the 5-year 2020 CECL transition. Therefore, to be consistent with the final rule, the agencies will clarify the instructions to address these banking organizations’ eligibility for the 5-year 2020 CECL transition and are proceeding with the other CECL-related regulatory capital reporting revisions as proposed. For institutions that have adopted Accounting Standards Codification (ASC) Topic 326, Financial Instruments—Credit Losses, the agencies proposed in the July 2020 notice to add new Memorandum item 8 to Schedule RI–B, Part II, Changes in Allowances for Credit Losses, to all three versions of the Call Report. This Memorandum item would capture the ‘‘Estimated amount of expected recoveries of amounts previously written off included within the allowance for credit losses on loans and leases held for investment (included in item 7, column A, ‘Balance end of current period,’ above).’’ In proposing this reporting change, the agencies noted that, under ASC Topic 326, institutions could, in some circumstances, reduce the amount of the allowance for credit losses that would otherwise be calculated for a pool of 5 85 FR 34870 (June 5, 2020). FR 17723 (March 31, 2020). 7 85 FR 61577 (September 30, 2020). 6 85 VerDate Sep<11>2014 17:07 Nov 20, 2020 Jkt 253001 assets with similar risk characteristics that includes charged-off assets by the estimated amount of expected recoveries of amounts written off on these assets. Upon further consideration, the agencies have decided to limit the collection of this proposed Memorandum item to the FFIEC 031 and FFIEC 041, and not to add this Memorandum item to the streamlined FFIEC 051, which has reduced reporting requirements in relation to the other two versions of the Call Report. On October 4, 2019, the agencies published a 60-day PRA Federal Register notice 8 for public comment on proposed revisions to the Call Reports and the FFIEC 101 that would implement various changes to the agencies’ regulatory capital rule that, as of that date, the agencies had finalized or were considering finalizing. The notice included proposed reporting revisions resulting from the proposed TLAC investments rule. The agencies did not proceed with the implementation of the TLAC-related reporting changes in January 2020 when they finalized the other capital-related reporting changes included in the October 2019 notice,9 as the agencies had not yet adopted a TLAC investments final rule. On October 20, 2020, the TLAC investments rule was finalized.10 The associated capital-related reporting changes proposed in October 2019 along with the agencies’ responses to the comments received on the proposed reporting revisions are discussed in section II.C below. After carefully considering the comments received on the TLAC investments portion of the October 2019 notice, the agencies are adopting the reporting changes proposed in that notice with the modifications discussed in Section II.C of this notice. B. Comments Received on July 2020 Proposed Call Report, FFIEC 101, and FFIEC 002 Revisions 1. Board Regulation D Amendments The agencies received one comment letter from a banking trade association that raised concerns with the proposed Call Report changes related to the Board’s interim final rule amending Regulation D (Reserve Requirements of Depository Institutions, 12 CFR part 8 84 FR 53227 (October 4, 2019). FR 4780 (January 27, 2020). 10 See the TLAC investments final rule attached to OCC News Release 2020–137, Board Press Release, and FDIC Press Release 115–2020, all of which are dated October 20, 2020. 9 85 PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 204) 11 that deletes the numeric limits on transfers and withdrawals that may be made each month from the definition of ‘‘savings deposits.’’ The agencies also proposed to make the same changes related to the Regulation D amendments to the FFIEC 002. The commenter suggested aligning the changes to the Call Report with the Board’s proposed changes to the FR 2900, Report of Transaction Accounts, Other Deposits and Vault Cash.12 The commenter noted that the proposed changes to the FR 2900 would consolidate the reporting of ATS accounts, NOW accounts/share drafts, and telephone and preauthorized transfer accounts together with total savings deposits (including MMDAs) in a new data item, ‘‘Other liquid deposits.’’ In addition, for data items collected annually on the FR 2900 for the June 30 report date, the report has been streamlined to collect only the data items needed for the reserve requirement exemption amount and low reserve tranche that combines demand deposits, NOW accounts, ATS accounts, telephone and preauthorized transfer accounts together with savings deposits in a new data item, ‘‘New Transaction Accounts.’’ In contrast, the Call Report will continue to require institutions to report transaction and nontransaction accounts separately in Schedule RC–E. The agencies note that the FR 2900 and Call Report serve two separate purposes. The primary purpose of the FR 2900 report is to collect data for the construction of the monetary aggregates. Although the Call Report can aid in the construction of the monetary aggregates by utilizing deposit data collected on a quarterly basis, its primary purpose is to serve as the principal source of financial of data used for the supervision and regulation of individual banks and savings associations and for monitoring the condition and performance of the banking industry. As such, the Call Report requires data to be reported on a more granular level than the FR 2900 report requires. Furthermore, section 7(a)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a)(5)) requires time and savings deposits to be reported separately from demand deposits in Call Reports. Therefore, the agencies believe that even though Call Report Schedule RC–E will maintain the requirement to report transaction and nontransaction accounts separately along with the demand deposit component of total transaction accounts and the components of total nontransaction accounts, institutions are familiar with 11 85 12 85 E:\FR\FM\23NON1.SGM FR 23445 (April 28, 2020). FR 54577 (September 2, 2020). 23NON1 Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices the existing structure of Schedule RC– E and have systems and procedures in place for completing the schedule. Accordingly, the agencies do not anticipate that there would be a change in Call Report burden resulting from the retention of these deposit items in Schedule RC–E. Secondly, the commenter recommended that a depositor’s eligibility to hold a NOW account should not be included in the criteria assessment to determine the reporting treatment for savings deposits for which the numeric limits on transfers and withdrawals have been removed. The commenter noted that ‘‘if a firm does not offer NOW accounts, they would be required to report savings deposits as NOW accounts, ATS accounts, or telephone and preauthorized transfer accounts (and as transaction accounts) based on a depositor’s eligibility to hold such account’’ and ‘‘for firms that do not offer NOW accounts, the data necessary to determine a depositor’s eligibility for NOW accounts would not be readily available.’’ In addition, the commenter also noted that this reporting treatment would be inconsistent with the Regulation D definition of savings deposits, as NOW account eligibility is not a component of the definition. The commenter believes gathering the data necessary to distinguish these depositors from other savings account holders solely for regulatory reporting purposes would create business and systems challenges. The agencies agree with the commenter that the depositor’s eligibility to hold a NOW account should not be included in the assessment criteria for classification as a ‘‘savings deposit’’ as such reporting would not be consistent with the Regulation D definition of savings deposits. Therefore, the agencies will remove the depositor’s eligibility to hold a NOW account from the assessment criteria. Thirdly, the commenter requested clarification on how institutions should report the components of retail sweep arrangements in the Call Report. Specifically, the commenter asked whether institutions should continue to report the nontransaction components of, or savings deposits in, retail sweep arrangements as nontransaction accounts. If not, the commenter asked whether institutions should strictly follow the proposed assessment criteria for the treatment of accounts where the transfer limit has been removed. The agencies have modified the description of retail sweep arrangements to remove references to transaction and nontransaction components. Further, institutions should not follow the VerDate Sep<11>2014 17:07 Nov 20, 2020 Jkt 253001 proposed assessment criteria for the treatment of accounts for which the transfer limit has been removed. Instead, institutions that offer valid retail sweep programs should report each component of the retail sweep arrangement based on the customer account agreement established by the depository institution. Two key criteria must be met for a valid retail sweep program. These criteria are: (1) A depository institution must establish by agreement with its customer two distinct, legally separate accounts; and (2) the swept funds must actually be moved between the customer’s accounts on the depository institution’s official books and records as of the close of business on the day(s) on which the depository institution intends to report the funds as being in separate accounts. Lastly, the commenter requested that the Board confirm that savings deposits or accounts described in 12 CFR 204.2(d)(2) would not be subject to Regulation CC (Availability of Funds and Collection of Checks, 12 CFR part 229) as a result of the recent amendments to Regulation D. Because Regulation CC continues to exclude accounts described in 12 CFR 204.2(d)(2) from the Regulation CC ‘‘account’’ definition, the recent amendments to Regulation D did not result in savings deposits or accounts described in 12 CFR 204.2(d)(2) now being covered by Regulation CC. 2. Provisions for Credit Losses on OffBalance-Sheet Credit Exposures The banking trade association requested that the agencies permit institutions that have not adopted Accounting Standards Update No. 2016–13, Topic 326, Financial Instruments—Credit Losses (ASU 2016– 13), to report their provisions for credit losses on off-balance sheet credit exposures as part of their provision expense in Schedule RI, item 4, rather than as part of other noninterest expense in Schedule RI, item 7.d. The agencies proposed to require the reporting of provisions for credit losses on off-balance sheet credit exposures in Schedule RI, item 4, only for institutions that have adopted ASU 2016–13. The agencies do not want to create diversity in reporting by allowing some institutions that have not adopted ASU 2016–13 to choose to report their provisions for credit losses on offbalance sheet credit exposures as part of their provision expense in Schedule RI, item 4, while other institutions continue to report their provisions related to offbalance sheet credit exposures in Schedule RI, item 7.d. Therefore, the PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 74789 agencies are not adopting the commenter’s suggestion. The agencies plan to consider whether to require the reporting of provisions for credit losses on off-balance sheet credit exposures by all institutions that have not adopted ASU 2016–13 as part of provisions for credit losses in Schedule RI, item 4. If the agencies decide to propose this revision to the Call Report in the future, they would do so through the standard PRA notice and comment process. The agencies are proceeding with the proposed revision to require institutions that have adopted ASU 2016–13 to include provisions for credit losses on off-balance sheet credit exposures in Schedule RI, item 4, and to separately report these provisions in Schedule RI– B, Part II, Memorandum item 7. 3. Other Comments Received The agencies also received comments on the Call Report that were not specifically related to any of the proposed changes. The U.S. government agency requested that the agencies expand the level of detail on interest and fee income collected in the Call Report on Schedule RI to align with each loan category reported on Schedule RC–C, Part I, Loans and Leases. The agencies are declining to make any changes to the level of detail on loan income at this time. The agencies believe the current level of detail strikes the appropriate balance between the information necessary for monitoring the condition and performance of individual institutions and the industry, as a whole, with the effort required by those organizations to separately collect and report interest and fee income information by loan category. The banking trade association supported the agencies’ actions during the COVID–19-related disruptions to permit institutions to electronically sign Call Reports and encouraged the agencies to permanently adopt an electronic signature option for Call Report filings. The agencies initially permitted electronic signatures on Call Reports as an accommodation to provide institutions flexibility during the COVID–19 disruptions. The agencies are exploring options for the possible adoption of standard protocols for permitting the use of electronic signatures on Call Reports on a permanent basis. E:\FR\FM\23NON1.SGM 23NON1 74790 Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices C. Comments Received on Revisions Related to the Total Loss Absorbing Capacity Investments Rule 1. General Comments The agencies received comment letters from two banking trade associations in response to the proposed changes to the Call Reports and the FFIEC 101 in the October 2019 notice that would implement the rule changes proposed in the TLAC investments notice of proposed rulemaking (NPR).13 Commenters requested that any changes to regulatory reporting related to the TLAC investments NPR— including changes to the Call Reports and FFIEC 101—be implemented after the effective date of the final rule. The agencies concur, and are not implementing associated changes to regulatory reports until the June 30, 2021, report date. The TLAC investments final rule’s effective date is April 1, 2021. Commenters further requested that the agencies delay implementation of the proposed changes to the Call Reports and FFIEC 101 until 18 months after the TLAC investments final rule becomes effective to provide more time to modify reporting systems and identify exposures to ‘‘covered debt instruments.’’ In addition, commenters requested that the agencies not require application of the final rule’s deduction treatment to an exposure to a global systemically important banking organization until the reporting banking organization has the information necessary to determine whether such exposure qualifies as a ‘‘covered debt instrument.’’ As discussed in the preamble of the TLAC investments final rule, the agencies maintain the supervisory expectation that large and internationally active banking organizations should be deeply knowledgeable of the securities exposures reported on their own balance sheets, if only for the purposes of prudent risk management. The final rule will become effective on April 1, 2021, and associated changes to the Call Reports and FFIEC 101 would be implemented as of the June 30, 2021, report date. The agencies believe the effective date for the reporting changes provides sufficient time for advanced approaches banking organizations to evaluate investments in covered debt instruments and apply the final rule’s deduction treatment. Further, the agencies believe that the effective date for the reporting changes provides sufficient time for these banking 13 84 FR 13814 (April 8, 2019). VerDate Sep<11>2014 17:07 Nov 20, 2020 organizations to change reporting systems and accurately identify exposures to covered debt instruments for purposes of regulatory reporting. 2. Comments on FFIEC 101, Schedule A A commenter remarked that the agencies proposed to add new data item 56.a to Schedule A of the FFIEC 101 to implement the deduction of covered debt instruments; however, no analogous data item would be added to Schedule RC–R, Part I, of the Call Reports and Schedule HC–R, Part I, of the Consolidated Financial Statements for Holding Companies (FR Y–9C).14 This commenter recommended adding a similar data item to the Call Reports and FR Y–9C. While Schedule A of the FFIEC 101 collects similar information—capital amounts, capital deductions, and ratios, among other items—as Schedule RC–R, Part I, of the Call Reports and Schedule HC–R, Part I, of the FR Y–9C, the information collected is not exactly the same. Given that only large and internationally active banking organizations complete the FFIEC 101, this form collects more granular information on capital deductions in comparison to the Call Reports and the FR Y–9C. The addition of item 56.a only on the FFIEC 101 is consistent with prior practice. Therefore, in an effort to minimize regulatory burden on reporting forms completed by smaller and less complex banking organizations, the agencies will not add an analogous data item to either the Call Reports or FR Y–9C. For Call Report purposes, as proposed in the October 2019 notice, the agencies would revise the instructions for items 11, 17, 24, and 45 of Schedule RC–R, Part I, in the FFIEC 031–FFIEC 041 instruction book to effectuate the deductions from regulatory capital for advanced approaches banking organizations related to investments in covered debt instruments and excluded covered debt instruments. One commenter remarked that the FR Y–9C included new reporting items for long-term and TLAC amounts, ratios, and the TLAC buffer. However, these items were not included in the agencies’ proposed revisions to the FFIEC 101. This commenter requested that such data items not be added to the FFIEC 101, as this would constitute a duplicative reporting requirement and unnecessarily increase burden on banking organizations that complete the FFIEC 101. The agencies concur with this commenter, as the Board’s TLAC rule applies to only holding companies. 14 OMB Jkt 253001 PO 00000 Number 7100–0128. Frm 00127 Fmt 4703 Sfmt 4703 Therefore, such data items are only to be reported on the FR Y–9C and are not being added to the FFIEC 101. D. Additional Instructional Matters 1. Uncollectible Accrued Interest Receivable Under ASC Topic 326 In April 2019, the Financial Accounting Standards Board (FASB) issued ASU No. 2019–04, ‘‘Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,’’ which amended ASC Topic 326 to allow an institution to make certain accounting policy elections for accrued interest receivable balances, including a separate policy election, at the class of financing receivable or major securitytype level, to charge off any uncollectible accrued interest receivable by reversing interest income, recognizing credit loss expense (i.e., provision expense), or a combination of both. The Glossary entry for ‘‘Accrued Interest Receivable’’ in the Call Report instructions currently references the following accounting policy elections in ASU 2019–04: • Institutions may elect to separately present accrued interest receivable from the associated financial asset, and the accrued interest receivable is presented net of an allowance for credit losses (ACL), if any; and • Institutions that charge off uncollectible accrued interest receivable in a timely manner, i.e., in accordance with the Glossary entry for ‘‘Nonaccrual Status,’’ may elect, at the class of financing receivable or the major security-type level, not to measure an ACL for accrued interest receivable. Although this Glossary entry does not currently provide for the ASU’s separate accounting policy election for the charge-off of uncollectible accrued interest receivable at the class of financing receivable or major securitytype level, this election is specifically addressed in the Interagency Policy Statement on Allowances for Credit Losses issued in May 2020.15 Accordingly, in the Call Report Supplemental Instructions issued by the FFIEC for the September 30, 2020, report date,16 the FFIEC advised that, for Call Report purposes, an institution that has adopted ASC Topic 326 may make the charge-off election for accrued interest receivable balances in ASU 2019–04 separately from the other elections for these balances in the ASU. 15 85 FR 32991 (June 1, 2020). 16 https://www.ffiec.gov/pdf/FFIEC_forms/ FFIEC031_FFIEC041_FFIEC051_suppinst_ 202009.pdf. E:\FR\FM\23NON1.SGM 23NON1 Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices The FFIEC also stated that an institution may charge off uncollectible accrued interest receivable against an ACL for Call Report purposes. The agencies plan to update the Call Report Glossary entry for ‘‘Accrued Interest Receivable’’ to align the instructions in this entry with the elections permitted under U.S. GAAP for institutions that have adopted ASC 326, which also would achieve consistency with the discussion of accrued interest receivable in the Interagency Policy Statement on Allowances for Credit Losses. 2. Shared Fees and Commissions From Securities-Related and Insurance Activities Institutions report income from certain securities-related and insurance activities in Call Report Schedule RI, Income Statement, items 5.d.(1) through (5) on the FFIEC 031 and the FFIEC 041; items 5.d.(1) and (2) on the FFIEC 051. When an institution partners with, or otherwise joins with, a third party to conduct these securities-related or insurance activities, and any fees and commissions generated by these activities are shared with the third party, the Schedule RI instructions do not currently address the reporting treatment for these sharing arrangements. Consequently, institutions may report the gross fees and commissions from these activities in the appropriate subitem of Schedule RI, item 5, ‘‘Other noninterest income,’’ and the third party’s share of the fees and commissions separately as expenses in Schedule RI, item 7.d, ‘‘Other noninterest expense.’’ Alternatively, institutions may report only their net share of the fees or commissions in the appropriate subitem of Schedule RI, item 5. The agencies believe that reporting shared fees and commissions on a net basis is preferable to gross reporting and is analogous to how income from certain other income-generating activities is reported in the Call Report income statement, including securitization income and servicing fee income, which are currently reported net of specified expenses and costs. This net approach better represents an institution’s income from a securitiesrelated or insurance activity engaged in jointly with a third party than when the third party’s share of the fees and commissions is separately reported as a noninterest expense in another income statement data item. As a result, the agencies plan to clarify the existing Schedule RI instructions to ensure consistent reporting on a net basis of fees and commissions from securities- VerDate Sep<11>2014 17:07 Nov 20, 2020 Jkt 253001 related and insurance activities that are shared with third parties. Furthermore, to avoid including repetitive language in the instructions for the multiple noninterest income items for income from securities-related and insurance activities in Schedule RI, a new nonreportable item 5.d captioned ‘‘Income from securities-related and insurance activities’’ would be added before the existing 5.d subitems on the Call Report forms and in the FFIEC 031–FFIEC 041 and FFIEC 051 instruction books. The reporting treatment for arrangements involving the sharing of fees and commissions with third parties arising from an institution’s securities brokerage, investment banking, investment advisory, securities underwriting, insurance and annuity sales, insurance underwriting, or any other securities-related and insurance activities would be explained once in the new item 5.d instructions. 3. Pledged Equity Securities In January 2016, the FASB issued ASU 2016–01, ‘‘Recognition and Measurement of Financial Assets and Financial Liabilities.’’ As one of its main provisions, the ASU requires investments in equity securities, except those accounted for under the equity method and those that result in consolidation, to be measured at fair value with changes in fair value recognized in net income. Thus, the ASU eliminates the existing concept of available-for-sale (AFS) equity securities, which are measured at fair value with changes in fair value generally recognized in other comprehensive income. As of December 31, 2020, all institutions will have been required to adopt ASU 2016–01 and, as a consequence, must report equity securities with readily determinable fair values not held for trading in Schedule RC, Balance Sheet, item 2.c, ‘‘Equity securities with readily determinable fair values not held for trading,’’ instead of Schedule RC–B, Securities, item 7, ‘‘Investments in mutual funds and other equity securities with readily determinable fair values.’’ Accordingly, Schedule RC–B, item 7, is scheduled to be removed effective December 31, 2020. Institutions have long reported the amount of held-to-maturity and AFS securities reported in Schedule RC–B, items 1 through 7, that are pledged to secure deposits and for other purposes in Schedule RC–B, Memorandum item 1, ‘‘Pledged securities.’’ Considering that all institutions that previously reported their AFS equity securities in Schedule RC–B, item 7, now report these securities in Schedule RC, item PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 74791 2.c, the agencies are updating the instructions for Schedule RC–B, Memorandum item 1, and Schedule RC, item 2.c, to indicate that institutions should include in Memorandum item 1 the fair value of pledged equity securities with readily determinable fair values not held for trading that are now reported in Schedule RC, item 2.c. The wording of existing footnote 1 to Memorandum item 1 of Schedule RC–B on the Call Report forms will be similarly updated. These instructional clarifications would ensure that pledged equity securities formerly reportable as AFS equity securities would continue to be reported in Memorandum item 1 notwithstanding the change in accounting for equity securities under U.S. GAAP. Information on pledged securities is an important element of the agencies’ analysis of an institution’s liquidity risk. III. Timing As stated in the July 2020 notice, the reporting revisions associated with the interim final rules, the final deposit insurance assessments rule, and the CARES Act provisions have been approved by OMB through the emergency clearance process, and these revisions have taken effect for the March 31, 2020, Call Report and FFIEC 101; the June 30, 2020, Call Report, FFIEC 101, and FFIEC 002; or the September 30, 2020, FFIEC 002. Subject to OMB approval, the reporting revisions for which emergency approvals were received will remain in effect,17 but with instructional clarifications for the modification to the eligibility in the final rule for the 5-year 2020 CECL transition provision. Also subject to OMB approval, the additional revisions to the Call Report and FFIEC 002 instructions proposed in the July 2020 notice that are related to the amendment of the Board’s Regulation D,18 but with the removal of NOW account eligibility from the assessment criteria for ‘‘savings deposit’’ classification, would be effective for reporting beginning in the first quarter of 2021. For the accounting-related changes discussed in Section II.C of the July 2020 notice,19 the revisions would take effect March 31, 2021, except for the revisions for last-of-layer hedging, which would be implemented following the FASB’s adoption of a final last-oflayer hedge accounting standard. A final 17 As stated in the July 2020 notice, the collection of the new Call Report and FFIEC 002 data items for which emergency approvals were received is expected to be time-limited. 18 85 FR 44369 (July 22, 2020). 19 85 FR 44371–44374 (July 22, 2020). E:\FR\FM\23NON1.SGM 23NON1 74792 Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices standard is not expected to be issued before the second half of 2021. The reporting revisions to Schedule RC–M for the international remittance transfer items discussed in Section II.D of the July 2020 notice 20 would take effect March 31, 2021.21 The reporting changes to the Call Reports and the FFIEC 101 for the TLAC investments final rule would take effect June 30, 2021. The specific wording of the captions for the new or revised Call Report, FFIEC 101, and FFIEC 002 data items discussed in the October 2019 and July 2020 notices and this notice and the numbering of these data items should be regarded as preliminary. The Call Report instructional clarifications to the Glossary entry for ‘‘Accrued Interest Receivable’’ and Schedule RC–B for pledged equity securities would take effect December 31, 2020, while the instructional clarifications to Schedule RI for shared fees and commissions from securitiesrelated and insurance activities would take effect March 31, 2021. IV. Request for Comment Public comment is requested on all aspects of this joint notice. Comment is specifically invited on: (a) Whether the proposed revisions to the collections of information that are the subject of this notice are necessary for the proper performance of the agencies’ functions, including whether the information has practical utility; (b) The accuracy of the agencies’ estimates of the burden of the information collections as they are proposed to be revised, including the validity of the methodology and assumptions used; (c) Ways to enhance the quality, utility, and clarity of the information to be collected; (d) Ways to minimize the burden of information collections on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. 20 85 FR 44374–44375 (July 22, 2020). will report current Schedule RC–M, item 16, in December 2020; will not report current Schedule RC–M, item 16, at all in June 2021; and will report the proposed revised Schedule RC–M, item 16, in December 2021 (covering all of calendar year 2021). 21 Institutions VerDate Sep<11>2014 17:07 Nov 20, 2020 Jkt 253001 Comments submitted in response to this joint notice will be shared among the agencies. Theodore J. Dowd, Deputy Chief Counsel, Office of the Comptroller of the Currency. Board of Governors of the Federal Reserve System. Ann E. Misback, Secretary of the Board. Federal Deposit Insurance Corporation. James P. Sheesley, Acting Assistant Executive Secretary. [FR Doc. 2020–25743 Filed 11–20–20; 8:45 am] BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P DEPARTMENT OF THE TREASURY Internal Revenue Service Proposed Collection; Comment Request on Information Collection for Treasury Decision 9568, Methods To Determine Taxable Income in Connection With a Cost Sharing Arrangement—IRC Section 482 Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. AGENCY: The Internal Revenue Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. Currently, the IRS is soliciting comments concerning Treasury Decision Methods to Determine Taxable Income in connection with a Cost Sharing Arrangement—IRC section 482. DATES: Written comments should be received on or before January 22, 2021 to be assured of consideration. ADDRESSES: Direct all written comments to Kinna Brewington, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the collection tools should be directed to LaNita Van Dyke, at (202) 317–6009, at Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or through the internet at Lanita.VanDyke@irs.gov. SUPPLEMENTARY INFORMATION: Currently, the IRS is seeking comments concerning the following information collection tools, reporting, and record-keeping requirements: SUMMARY: PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 Title: Methods to Determine Taxable Income in connection with a Cost Sharing Arrangement—IRC section 482. OMB Number: 1545–1364. Treasury Decision Number: 9568. Abstract: This document contains final regulations regarding methods to determine taxable income in connection with a cost sharing arrangement under section 482 of the Internal Revenue Code (Code). The final regulations address issues that have arisen in administering the current cost sharing regulations. The final regulations affect domestic and foreign entities that enter into cost sharing arrangements described in the final regulations. Current Actions: There are no changes to the information collection. Type of Review: Extension without change of a currently approved collection. Affected Public: Business or other forprofit organizations. Estimated Number of Respondents: 500. Estimated Time per Response: 18 hours, 42 minutes. Estimated Total Annual Burden Hours: 9,350. The following paragraph applies to all the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. Request for Comments: Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. E:\FR\FM\23NON1.SGM 23NON1

Agencies

[Federal Register Volume 85, Number 226 (Monday, November 23, 2020)]
[Notices]
[Pages 74784-74792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25743]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of Governors of the Federal Reserve System (Board); and Federal 
Deposit Insurance Corporation (FDIC).

ACTION: Joint notice and request for comment.

-----------------------------------------------------------------------

SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may 
not conduct or sponsor, and the respondent is not required to respond 
to, an information collection unless it displays a currently valid 
Office of Management and Budget (OMB) control number. On July 22, 2020, 
the agencies, under the auspices of the Federal Financial Institutions 
Examination Council (FFIEC), requested public comment for 60 days on a 
proposal to revise and extend the Consolidated Reports of Condition and 
Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC 051) and the 
Regulatory Capital Reporting for Institutions Subject to the Advanced 
Capital Adequacy Framework (FFIEC 101), which are currently approved 
collections of information.
    In the July 2020 notice, the Board, under the auspices of the 
FFIEC, also requested public comment for 60 days on a proposal to 
revise and extend the Report of Assets and Liabilities of U.S. Branches 
and Agencies of Foreign Banks (FFIEC 002) and the Report of Assets and 
Liabilities of a Non-U.S. Branch that is Managed or Controlled by a 
U.S. Branch or Agency of a Foreign (Non-U.S.) Bank (FFIEC 002S), which 
also are currently approved collections of information. The Board 
published this proposal on behalf of the agencies.
    Finally, on October 4, 2019, the agencies, under the auspices of 
the FFIEC, requested public comment for 60 days on proposed Call Report 
and FFIEC 101 revisions to implement the agencies' proposed total loss 
absorbing capacity (TLAC) investments rule for advanced approaches 
banking organizations.
    The comment period for the July 2020 notice ended on September 21, 
2020. The comment period for the October 2019 notice ended on December 
3, 2019, and the agencies subsequently adopted a TLAC investments final 
rule. As described in the SUPPLEMENTARY INFORMATION section, after 
considering the comments received on the two notices, the agencies are 
proceeding with the proposed revisions to the reporting forms and 
instructions for the Call Reports, FFIEC 101, and FFIEC 002 with 
certain modifications. The SUPPLEMENTARY INFORMATION section also 
discusses certain Call Report instructional clarifications.
    The agencies hereby give notice of their plan to submit to OMB a 
request to approve the revision and extension of these information 
collections, and again invite comment on the renewal.

DATES: Comments must be submitted on or before December 23, 2020.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments, which should refer to the 
``Call Report, FFIEC 101, and FFIEC 002 Revisions,'' will be shared 
among the agencies.
    Written comments and recommendations for the proposed information 
collections should be sent within 30 days of publication of this notice 
to www.reginfo.gov/public/do/PRAMain. You may find these particular 
information collections by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
    OCC: You may submit comments, which should refer to ``Call Report, 
FFIEC 101, and FFIEC 002 Revisions,'' by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Office of the Comptroller of 
the Currency, Attention: 1557-0081 and 1557-0239, 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 
``1557-0081 and 1557-0239'' in your comment. In general, the OCC will 
publish comments on www.reginfo.gov without change, including any 
business or personal information provided, such as name and address 
information, email addresses, or phone numbers. Comments received, 
including

[[Page 74785]]

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 information collection beginning on the date of publication of the 
second notice for this collection by the following method:
     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu 
select ``Department of Treasury'' and then click ``submit.'' This 
information collection can be located by searching by OMB control 
number ``1557-0081'' or ``1557-0239.'' Upon finding the appropriate 
information collection, click on the related ``ICR Reference Number.'' 
On the next screen, select ``View Supporting Statement and Other 
Documents'' and then click on the link to any comment listed at the 
bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.
    Board: You may submit comments, which should refer to ``Call 
Report, FFIEC 101, and FFIEC 002 Revisions,'' by any of the following 
methods:
     Agency Website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Email: [email protected]. Include ``Call 
Report, FFIEC 101, and FFIEC 002 Revisions'' in the subject line of the 
message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available on the Board's website at https://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information.
    FDIC: You may submit comments, which should refer to ``Call Report, 
FFIEC 101, and FFIEC 002 Revisions,'' by any of the following methods:
     Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC's 
website.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include ``Call Report, FFIEC 
101, and FFIEC 002 Revisions'' in the subject line of the message.
     Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery: Comments may be hand delivered to the guard 
station at the rear of the 550 17th Street Building (located on F 
Street) on business days between 7:00 a.m. and 5:00 p.m.
     Public Inspection: All comments received will be posted 
without change to https://www.fdic.gov/regulations/laws/federal/ 
including any personal information provided. Paper copies of public 
comments may be requested from the FDIC Public Information Center by 
telephone at (877) 275-3342 or (703) 562-2200.
    Additionally, commenters may send a copy of their comments to the 
OMB desk officers for the agencies by mail to the Office of Information 
and Regulatory Affairs, U.S. Office of Management and Budget, New 
Executive Office Building, Room 10235, 725 17th Street NW, Washington, 
DC 20503; by fax to (202) 395-6974; or by email to 
[email protected].

FOR FURTHER INFORMATION CONTACT: For further information about the 
proposed revisions to the information collections discussed in this 
notice, please contact any of the agency staff whose names appear 
below. In addition, copies of the report forms for the Call Reports, 
FFIEC 101, FFIEC 002, and FFIEC 002S can be obtained at the FFIEC's 
website (https://www.ffiec.gov/ffiec_report_forms.htm).
    OCC: Kevin Korzeniewski, Counsel, Chief Counsel's Office, (202) 
649-5490, or for persons who are deaf or hearing impaired, TTY, (202) 
649-5597.
    Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer, 
(202) 452-3884, Office of the Chief Data Officer, Board of Governors of 
the Federal Reserve System, 20th and C Streets NW, Washington, DC 
20551. Telecommunications Device for the Deaf (TDD) users may call 
(202) 263-4869.
    FDIC: Manuel E. Cabeza, Counsel, (202) 898-3767, Legal Division, 
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, 
DC 20429.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Affected Reports
II. Current Actions
    A. Introduction
    B. Comments Received on the July 2020 Proposed Call Report, 
FFIEC 101, and FFIEC 002 Revisions
    1. Board Regulation D Amendments
    2. Provisions for Credit Losses on Off-Balance-Sheet Credit 
Exposures
    3. Other Comments Received
    C. Comments Received on Revisions Related to the Total Loss 
Absorbing Capacity Investments Rule
    D. Additional Instructional Matters
    1. Uncollectible Accrued Interest Receivable Under ASC Topic 326
    2. Shared Fees and Commissions From Securities-Related and 
Insurance Activities
    3. Pledged Equity Securities
III. Timing
IV. Request for Comment

I. Affected Reports

    The proposed changes discussed below affect the Call Reports, FFIEC 
101, and FFIEC 002.

A. Call Reports

    The agencies propose to extend for three years, with revision, the 
Call Reports.
    Report Title: Consolidated Reports of Condition and Income.
    Form Number: FFIEC 031 (Consolidated Reports of Condition and 
Income for a Bank with Domestic and Foreign Offices), FFIEC 041 
(Consolidated Reports of Condition and Income for a Bank with Domestic 
Offices Only), and FFIEC 051 (Consolidated Reports of Condition and 
Income for a Bank with Domestic Offices Only and Total Assets Less Than 
$5 Billion).
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Type of Review: Revision and extension of currently approved 
collections.
OCC
    OMB Control No.: 1557-0081.
    Estimated Number of Respondents: 1,111 national banks and federal 
savings associations.
    Estimated Average Burden per Response: 41.92 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 186,292 burden hours to file.
Board
    OMB Control No.: 7100-0036.
    Estimated Number of Respondents: 739 state member banks.
    Estimated Average Burden per Response: 45.40 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 134,202 burden hours to file.

[[Page 74786]]

FDIC
    OMB Control No.: 3064-0052.
    Estimated Number of Respondents: 3,263 insured state nonmember 
banks and state savings associations.
    Estimated Average Burden per Response: 39.96 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 521,558 burden hours to file.
    The estimated average burden hours collectively reflect the 
estimates for the FFIEC 051, the FFIEC 041, and the FFIEC 031 reports 
for each agency. When the estimates are calculated by type of report 
across the agencies, the estimated average burden hours per quarter are 
35.27 (FFIEC 051), 55.20 (FFIEC 041), and 85.81 (FFIEC 031), using data 
from the June 30, 2020, Call Reports. The estimated burden hours for 
the currently approved reports, which are based on data as of December 
31, 2019, are 37.62 (FFIEC 051), 51.02 (FFIEC 041), and 96.30 (FFIEC 
031). These burden estimates reflect the effects of the Call Report 
revisions related to COVID-19 included in the agencies' emergency 
clearance requests that were approved by OMB in the second quarter of 
2020 and subsequently included in the July 2020 notice. Thus, the 
effects of the other revisions included in this notice related to U.S. 
GAAP, international remittance transfers, and TLAC investments, 
together with the use of June 30, 2020, data for estimating burden, 
results in an increase (decrease) in estimated average burden hours per 
quarter by type of report of (2.35) (FFIEC 051), 4.18 (FFIEC 041), and 
(10.49) (FFIEC 031) since OMB's most recent approval of Call Report 
revisions.
    The changes in estimated burden primarily are due to three factors. 
First, the burden estimates in this notice incorporate a decrease of 
approximately 100 in the number of institutions that file Call Reports 
used in the agencies' last estimates that were submitted to OMB. 
Second, the agencies reduced their prior estimates of the number of 
institutions that were expected to file the FFIEC 051 Call Report after 
expanding the eligibility for this version of the Call Report to 
institutions with between $1 billion and $5 billion in total assets. 
The agencies originally expected about four fifths of newly eligible 
institutions to choose to file the FFIEC 051, while the actual adoption 
rate as of June 30, 2020, was significantly lower at less than one 
third of newly eligible institutions. Newly eligible institutions that 
chose not to file the streamlined FFIEC 051 continued to file the more 
detailed FFIEC 041, so the lower than expected percentage of new FFIEC 
051 filers resulted in an increase in estimated burden for the FFIEC 
041 and a decrease in estimated burden for the FFIEC 051. Third, the 
agencies reduced the estimated number of qualifying institutions that 
were expected to opt into the community bank leverage ratio (CBLR) 
framework for reporting regulatory capital in the Call Reports. The 
agencies previously expected up to three fifths of institutions with 
total assets of less than $10 billion would opt into this simplified 
capital framework, while only two fifths of institutions of this size 
actually reported under the CBLR framework as of June 30, 2020. The 
lower than expected percentage of institutions opting into the CBLR 
framework, and the larger than expected percentage continuing to report 
under the agencies' risk-based capital framework, contributed to an 
increase in estimated burden for both the FFIEC 041 and FFIEC 051 
versions of the Call Report.
    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).
    Type of Review: Extension and revision of currently approved 
collections.
Legal Basis and Need for Collections
    The Call Report information collections are mandatory: 12 U.S.C. 
161 (national banks), 12 U.S.C. 324 (state member banks), 12 U.S.C. 
1817 (insured state nonmember commercial and savings banks), and 12 
U.S.C. 1464 (federal and state savings associations). At present, 
except for selected data items and text, these information collections 
are not given confidential treatment.
    Banks and savings associations submit Call Report data to the 
agencies each quarter for the agencies' use in monitoring the 
condition, performance, and risk profile of individual institutions and 
the industry as a whole. Call Report data serve a regulatory or public 
policy purpose by assisting the agencies in fulfilling their shared 
missions of ensuring the safety and soundness of financial institutions 
and the financial system and protecting consumer financial rights, as 
well as agency-specific missions affecting national and state-chartered 
institutions, such as conducting monetary policy, ensuring financial 
stability, and administering federal deposit insurance. Call Reports 
are the source of the most current statistical data available for 
identifying areas of focus for on-site and off-site examinations. Among 
other purposes, the agencies use Call Report data in evaluating 
institutions' corporate applications, including interstate merger and 
acquisition applications for which the agencies are required by law to 
determine whether the resulting institution would control more than 10 
percent of the total amount of deposits of insured depository 
institutions in the United States. Call Report data also are used to 
calculate institutions' deposit insurance assessments and national 
banks' and federal savings associations' semiannual assessment fees.

B. FFIEC 101

    The agencies propose to extend for three years, with revision, the 
FFIEC 101 report.
    Report Title: Risk-Based Capital Reporting for Institutions Subject 
to the Advanced Capital Adequacy Framework.
    Form Number: FFIEC 101.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
OCC
    OMB Control No.: 1557-0239.
    Estimated Number of Respondents: 5 national banks and federal 
savings associations.
    Estimated Time per Response: 674 burden hours per quarter to file 
for banks and federal savings associations.
    Estimated Total Annual Burden: 13,480 burden hours to file.
Board
    OMB Control No.: 7100-0319.
    Estimated Number of Respondents: 4 state member banks; 5 bank 
holding companies and savings and loan holding companies that complete 
Supplementary Leverage Ratio (SLR) Tables 1 and 2 only; 9 other bank 
holding companies and savings and loan holding companies; and 6 
intermediate holding companies.
    Estimated Time per Response: 674 burden hours per quarter to file 
for state member banks; 3 burden hours per quarter to file for bank 
holding companies and savings and loan holding companies that complete 
Supplementary Leverage Ratio (SLR) Tables 1and 2 only; 677 burden hours 
per quarter to file for other bank holding companies and savings and 
loan holding companies; and 3 burden hours per quarter to file for 
intermediate holding companies.
    Estimated Total Annual Burden: 10,784 burden hours for state member

[[Page 74787]]

banks to file; 60 burden hours for bank holding companies and savings 
and loan holding companies that complete Supplementary Leverage Ratio 
(SLR) Tables 1 and 2 only to file; 24,372 burden hours for other bank 
holding companies and savings and loan holding companies to file; and 
72 burden hours for intermediate holding companies to file.
FDIC
    OMB Control No.: 3064-0159.
    Estimated Number of Respondents: 1 insured state nonmember bank and 
state savings association.
    Estimated Time per Response: 674 burden hours per quarter to file.
    Estimated Total Annual Burden: 2,696 burden hours to file.
    Type of Review: Extension and revision of currently approved 
collections.
Legal Basis and Need for Collections
    Each advanced approaches institution \1\ is required to report 
quarterly regulatory capital data on the FFIEC 101. Each top-tier 
advanced approaches institution and top-tier Category III institution 
\2\ is required to report supplementary leverage ratio information on 
the FFIEC 101. The FFIEC 101 information collections are mandatory for 
advanced approaches and top-tier Category III institutions: 12 U.S.C. 
161 (national banks), 12 U.S.C. 324 (state member banks), 12 U.S.C. 
1844(c) (bank holding companies), 12 U.S.C. 1467a(b) (savings and loan 
holding companies), 12 U.S.C. 1817 (insured state nonmember commercial 
and savings banks), 12 U.S.C. 1464 (federal and state savings 
associations), and 12 U.S.C. 1844(c), 3106, and 3108 (intermediate 
holding companies). Certain data items in this information collection 
are given confidential treatment under 5 U.S.C. 552(b)(4) and (8).
---------------------------------------------------------------------------

    \1\ 12 CFR 3.100(b) (OCC); 12 CFR 217.100(b) (Board); 12 CFR 
324.100(b) (FDIC).
    \2\ 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12 CFR 324.2 (FDIC).
---------------------------------------------------------------------------

    The agencies use data reported in the FFIEC 101 to assess and 
monitor the levels and components of each reporting entity's applicable 
capital requirements and the adequacy of the entity's capital under the 
Advanced Capital Adequacy Framework \3\ and the supplementary leverage 
ratio,\4\ as applicable; to evaluate the impact of the Advanced Capital 
Adequacy Framework and the supplementary leverage ratio, as applicable, 
on individual reporting entities and on an industry-wide basis and its 
competitive implications; and to supplement on-site examination 
processes. The reporting schedules also assist advanced approaches 
institutions and top-tier Category III institutions in understanding 
expectations relating to the system development necessary for 
implementation and validation of the Advanced Capital Adequacy 
Framework and the supplementary leverage ratio, as applicable. 
Submitted data that are released publicly will also provide other 
interested parties with additional information about advanced 
approaches institutions' and top-tier Category III institutions' 
regulatory capital.
---------------------------------------------------------------------------

    \3\ 12 CFR part 3, subpart E (OCC); 12 CFR part 217, subpart E 
(Board); 12 CFR part 324, subpart E (FDIC).
    \4\ 12 CFR 3.10(c)(4) (OCC); 12 CFR 217.10(c)(4) (Board); 12 CFR 
324.10(c)(4) (FDIC).
---------------------------------------------------------------------------

C. FFIEC 002 and 002S

    The Board proposes to extend for three years, with revision, the 
FFIEC 002 and FFIEC 002S reports.
    Report Titles: Report of Assets and Liabilities of U.S. Branches 
and Agencies of Foreign Banks; Report of Assets and Liabilities of a 
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or 
Agency of a Foreign (Non-U.S.) Bank.
    Form Numbers: FFIEC 002; FFIEC 002S.
    OMB Control Number: 7100-0032.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Respondents: All state-chartered or federally-licensed U.S. 
branches and agencies of foreign banking organizations, and all non-
U.S. branches managed or controlled by a U.S. branch or agency of a 
foreign banking organization.
    Estimated Number of Respondents: FFIEC 002--209; FFIEC 002S--38.
    Estimated Average Burden per Response: FFIEC 002--24.87 hours; 
FFIEC 002S--6.0 hours.
    Estimated Total Annual Burden: FFEIC 002--20,791 hours; FFIEC 
002S--912 hours.
    Type of Review: Revision of currently approved collections.
Legal Basis and Need for Collection
    On a quarterly basis, all U.S. branches and agencies of foreign 
banks are required to file the FFIEC 002, which is a detailed report of 
condition with a variety of supporting schedules. This information is 
used to fulfill the supervisory and regulatory requirements of the 
International Banking Act of 1978. The data are also used to augment 
the bank credit, loan, and deposit information needed for monetary 
policy and other public policy purposes. The FFIEC 002S is a supplement 
to the FFIEC 002 that collects information on assets and liabilities of 
any non-U.S. branch that is managed or controlled by a U.S. branch or 
agency of the foreign bank. A non-U.S. branch is managed or controlled 
by a U.S. branch or agency if a majority of the responsibility for 
business decisions, including but not limited to decisions with regard 
to lending or asset management or funding or liability management, or 
the responsibility for recordkeeping in respect of assets or 
liabilities for that foreign branch resides at the U.S. branch or 
agency. A separate FFIEC 002S must be completed for each managed or 
controlled non-U.S. branch. The FFIEC 002S must be filed quarterly 
along with the U.S. branch or agency's FFIEC 002.
    These information collections are mandatory (12 U.S.C. 3105(c)(2), 
1817(a)(1) and (3), and 3102(b)). Except for select sensitive items, 
the FFIEC 002 is not given confidential treatment; the FFIEC 002S is 
given confidential treatment (5 U.S.C. 552(b)(4) and (8)). The data 
from both reports are used for (1) monitoring deposit and credit 
transactions of U.S. residents; (2) monitoring the impact of policy 
changes; (3) analyzing structural issues concerning foreign bank 
activity in U.S. markets; (4) understanding flows of banking funds and 
indebtedness of developing countries in connection with data collected 
by the International Monetary Fund and the Bank for International 
Settlements that are used in economic analysis; and (5) assisting in 
the supervision of U.S. offices of foreign banks. The Federal Reserve 
System collects and processes these reports on behalf of all three 
agencies.

II. Current Actions

A. Introduction

    On July 22, 2020, the agencies proposed revisions to the Call 
Reports, FFIEC 101, and FFIEC 002 related to interim final rules and a 
final rule issued in response to disruptions related to COVID-19 that 
revise the agencies' capital rule, the Board's regulations on reserve 
requirements and insider loans, and the FDIC's deposit insurance 
assessment regulations. The proposed revisions also resulted from 
certain sections of the Coronavirus Aid, Relief, and Economic Security 
Act (CARES Act). The agencies received emergency approvals from OMB to 
implement these revisions as of the March 31, June 30, or September 30, 
2020, report dates. In addition, the agencies proposed changes to the 
Call Reports and the FFIEC 002 related to U.S. GAAP in the July 2020 
notice. Further, the agencies proposed revisions to the Call Reports

[[Page 74788]]

in that notice to reflect the expiration of the temporary exception for 
estimated disclosures on international remittance transfers and certain 
amendments to the Remittance Rule (12 CFR 1005.30 et seq.) recently 
finalized by the Consumer Financial Protection Bureau (Bureau),\5\ 
which is a member of the FFIEC.
---------------------------------------------------------------------------

    \5\ 85 FR 34870 (June 5, 2020).
---------------------------------------------------------------------------

    The comment period for the July 2020 notice ended on September 21, 
2020. The agencies received comments on the proposed reporting changes 
covered in the notice from two entities: A banking trade association 
and a U.S. government agency. In Section II.B, the agencies provide 
more detail on the comments received and the changes the agencies are 
making in response to those comments.
    While most of the interim final rules were finalized as proposed, 
there were limited revisions to the Regulatory Capital Rule: Revised 
Transition for the Current Expected Credit Losses Methodology for 
Allowances, published in the Federal Register on March 27, 2020 (CECL 
interim final rule).\6\ In the agencies' final rule on this subject, 
published in the Federal Register on September 30, 2020,\7\ banking 
organizations that ``early adopted'' the current expected credit losses 
(CECL) methodology during 2020 were permitted to also use the 5-year 
2020 CECL transition. Therefore, to be consistent with the final rule, 
the agencies will clarify the instructions to address these banking 
organizations' eligibility for the 5-year 2020 CECL transition and are 
proceeding with the other CECL-related regulatory capital reporting 
revisions as proposed.
---------------------------------------------------------------------------

    \6\ 85 FR 17723 (March 31, 2020).
    \7\ 85 FR 61577 (September 30, 2020).
---------------------------------------------------------------------------

    For institutions that have adopted Accounting Standards 
Codification (ASC) Topic 326, Financial Instruments--Credit Losses, the 
agencies proposed in the July 2020 notice to add new Memorandum item 8 
to Schedule RI-B, Part II, Changes in Allowances for Credit Losses, to 
all three versions of the Call Report. This Memorandum item would 
capture the ``Estimated amount of expected recoveries of amounts 
previously written off included within the allowance for credit losses 
on loans and leases held for investment (included in item 7, column A, 
`Balance end of current period,' above).'' In proposing this reporting 
change, the agencies noted that, under ASC Topic 326, institutions 
could, in some circumstances, reduce the amount of the allowance for 
credit losses that would otherwise be calculated for a pool of assets 
with similar risk characteristics that includes charged-off assets by 
the estimated amount of expected recoveries of amounts written off on 
these assets. Upon further consideration, the agencies have decided to 
limit the collection of this proposed Memorandum item to the FFIEC 031 
and FFIEC 041, and not to add this Memorandum item to the streamlined 
FFIEC 051, which has reduced reporting requirements in relation to the 
other two versions of the Call Report.
    On October 4, 2019, the agencies published a 60-day PRA Federal 
Register notice \8\ for public comment on proposed revisions to the 
Call Reports and the FFIEC 101 that would implement various changes to 
the agencies' regulatory capital rule that, as of that date, the 
agencies had finalized or were considering finalizing. The notice 
included proposed reporting revisions resulting from the proposed TLAC 
investments rule. The agencies did not proceed with the implementation 
of the TLAC-related reporting changes in January 2020 when they 
finalized the other capital-related reporting changes included in the 
October 2019 notice,\9\ as the agencies had not yet adopted a TLAC 
investments final rule.
---------------------------------------------------------------------------

    \8\ 84 FR 53227 (October 4, 2019).
    \9\ 85 FR 4780 (January 27, 2020).
---------------------------------------------------------------------------

    On October 20, 2020, the TLAC investments rule was finalized.\10\ 
The associated capital-related reporting changes proposed in October 
2019 along with the agencies' responses to the comments received on the 
proposed reporting revisions are discussed in section II.C below. After 
carefully considering the comments received on the TLAC investments 
portion of the October 2019 notice, the agencies are adopting the 
reporting changes proposed in that notice with the modifications 
discussed in Section II.C of this notice.
---------------------------------------------------------------------------

    \10\ See the TLAC investments final rule attached to OCC News 
Release 2020-137, Board Press Release, and FDIC Press Release 115-
2020, all of which are dated October 20, 2020.
---------------------------------------------------------------------------

B. Comments Received on July 2020 Proposed Call Report, FFIEC 101, and 
FFIEC 002 Revisions

1. Board Regulation D Amendments
    The agencies received one comment letter from a banking trade 
association that raised concerns with the proposed Call Report changes 
related to the Board's interim final rule amending Regulation D 
(Reserve Requirements of Depository Institutions, 12 CFR part 204) \11\ 
that deletes the numeric limits on transfers and withdrawals that may 
be made each month from the definition of ``savings deposits.'' The 
agencies also proposed to make the same changes related to the 
Regulation D amendments to the FFIEC 002.
---------------------------------------------------------------------------

    \11\ 85 FR 23445 (April 28, 2020).
---------------------------------------------------------------------------

    The commenter suggested aligning the changes to the Call Report 
with the Board's proposed changes to the FR 2900, Report of Transaction 
Accounts, Other Deposits and Vault Cash.\12\ The commenter noted that 
the proposed changes to the FR 2900 would consolidate the reporting of 
ATS accounts, NOW accounts/share drafts, and telephone and 
preauthorized transfer accounts together with total savings deposits 
(including MMDAs) in a new data item, ``Other liquid deposits.'' In 
addition, for data items collected annually on the FR 2900 for the June 
30 report date, the report has been streamlined to collect only the 
data items needed for the reserve requirement exemption amount and low 
reserve tranche that combines demand deposits, NOW accounts, ATS 
accounts, telephone and preauthorized transfer accounts together with 
savings deposits in a new data item, ``New Transaction Accounts.'' In 
contrast, the Call Report will continue to require institutions to 
report transaction and nontransaction accounts separately in Schedule 
RC-E.
---------------------------------------------------------------------------

    \12\ 85 FR 54577 (September 2, 2020).
---------------------------------------------------------------------------

    The agencies note that the FR 2900 and Call Report serve two 
separate purposes. The primary purpose of the FR 2900 report is to 
collect data for the construction of the monetary aggregates. Although 
the Call Report can aid in the construction of the monetary aggregates 
by utilizing deposit data collected on a quarterly basis, its primary 
purpose is to serve as the principal source of financial of data used 
for the supervision and regulation of individual banks and savings 
associations and for monitoring the condition and performance of the 
banking industry. As such, the Call Report requires data to be reported 
on a more granular level than the FR 2900 report requires. Furthermore, 
section 7(a)(5) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(a)(5)) requires time and savings deposits to be reported 
separately from demand deposits in Call Reports. Therefore, the 
agencies believe that even though Call Report Schedule RC-E will 
maintain the requirement to report transaction and nontransaction 
accounts separately along with the demand deposit component of total 
transaction accounts and the components of total nontransaction 
accounts, institutions are familiar with

[[Page 74789]]

the existing structure of Schedule RC-E and have systems and procedures 
in place for completing the schedule. Accordingly, the agencies do not 
anticipate that there would be a change in Call Report burden resulting 
from the retention of these deposit items in Schedule RC-E.
    Secondly, the commenter recommended that a depositor's eligibility 
to hold a NOW account should not be included in the criteria assessment 
to determine the reporting treatment for savings deposits for which the 
numeric limits on transfers and withdrawals have been removed. The 
commenter noted that ``if a firm does not offer NOW accounts, they 
would be required to report savings deposits as NOW accounts, ATS 
accounts, or telephone and preauthorized transfer accounts (and as 
transaction accounts) based on a depositor's eligibility to hold such 
account'' and ``for firms that do not offer NOW accounts, the data 
necessary to determine a depositor's eligibility for NOW accounts would 
not be readily available.'' In addition, the commenter also noted that 
this reporting treatment would be inconsistent with the Regulation D 
definition of savings deposits, as NOW account eligibility is not a 
component of the definition. The commenter believes gathering the data 
necessary to distinguish these depositors from other savings account 
holders solely for regulatory reporting purposes would create business 
and systems challenges. The agencies agree with the commenter that the 
depositor's eligibility to hold a NOW account should not be included in 
the assessment criteria for classification as a ``savings deposit'' as 
such reporting would not be consistent with the Regulation D definition 
of savings deposits. Therefore, the agencies will remove the 
depositor's eligibility to hold a NOW account from the assessment 
criteria.
    Thirdly, the commenter requested clarification on how institutions 
should report the components of retail sweep arrangements in the Call 
Report. Specifically, the commenter asked whether institutions should 
continue to report the nontransaction components of, or savings 
deposits in, retail sweep arrangements as nontransaction accounts. If 
not, the commenter asked whether institutions should strictly follow 
the proposed assessment criteria for the treatment of accounts where 
the transfer limit has been removed. The agencies have modified the 
description of retail sweep arrangements to remove references to 
transaction and nontransaction components. Further, institutions should 
not follow the proposed assessment criteria for the treatment of 
accounts for which the transfer limit has been removed. Instead, 
institutions that offer valid retail sweep programs should report each 
component of the retail sweep arrangement based on the customer account 
agreement established by the depository institution. Two key criteria 
must be met for a valid retail sweep program. These criteria are: (1) A 
depository institution must establish by agreement with its customer 
two distinct, legally separate accounts; and (2) the swept funds must 
actually be moved between the customer's accounts on the depository 
institution's official books and records as of the close of business on 
the day(s) on which the depository institution intends to report the 
funds as being in separate accounts.
    Lastly, the commenter requested that the Board confirm that savings 
deposits or accounts described in 12 CFR 204.2(d)(2) would not be 
subject to Regulation CC (Availability of Funds and Collection of 
Checks, 12 CFR part 229) as a result of the recent amendments to 
Regulation D. Because Regulation CC continues to exclude accounts 
described in 12 CFR 204.2(d)(2) from the Regulation CC ``account'' 
definition, the recent amendments to Regulation D did not result in 
savings deposits or accounts described in 12 CFR 204.2(d)(2) now being 
covered by Regulation CC.
2. Provisions for Credit Losses on Off-Balance-Sheet Credit Exposures
    The banking trade association requested that the agencies permit 
institutions that have not adopted Accounting Standards Update No. 
2016-13, Topic 326, Financial Instruments--Credit Losses (ASU 2016-13), 
to report their provisions for credit losses on off-balance sheet 
credit exposures as part of their provision expense in Schedule RI, 
item 4, rather than as part of other noninterest expense in Schedule 
RI, item 7.d. The agencies proposed to require the reporting of 
provisions for credit losses on off-balance sheet credit exposures in 
Schedule RI, item 4, only for institutions that have adopted ASU 2016-
13.
    The agencies do not want to create diversity in reporting by 
allowing some institutions that have not adopted ASU 2016-13 to choose 
to report their provisions for credit losses on off-balance sheet 
credit exposures as part of their provision expense in Schedule RI, 
item 4, while other institutions continue to report their provisions 
related to off-balance sheet credit exposures in Schedule RI, item 7.d. 
Therefore, the agencies are not adopting the commenter's suggestion. 
The agencies plan to consider whether to require the reporting of 
provisions for credit losses on off-balance sheet credit exposures by 
all institutions that have not adopted ASU 2016-13 as part of 
provisions for credit losses in Schedule RI, item 4. If the agencies 
decide to propose this revision to the Call Report in the future, they 
would do so through the standard PRA notice and comment process.
    The agencies are proceeding with the proposed revision to require 
institutions that have adopted ASU 2016-13 to include provisions for 
credit losses on off-balance sheet credit exposures in Schedule RI, 
item 4, and to separately report these provisions in Schedule RI-B, 
Part II, Memorandum item 7.
3. Other Comments Received
    The agencies also received comments on the Call Report that were 
not specifically related to any of the proposed changes.
    The U.S. government agency requested that the agencies expand the 
level of detail on interest and fee income collected in the Call Report 
on Schedule RI to align with each loan category reported on Schedule 
RC-C, Part I, Loans and Leases. The agencies are declining to make any 
changes to the level of detail on loan income at this time. The 
agencies believe the current level of detail strikes the appropriate 
balance between the information necessary for monitoring the condition 
and performance of individual institutions and the industry, as a 
whole, with the effort required by those organizations to separately 
collect and report interest and fee income information by loan 
category.
    The banking trade association supported the agencies' actions 
during the COVID-19-related disruptions to permit institutions to 
electronically sign Call Reports and encouraged the agencies to 
permanently adopt an electronic signature option for Call Report 
filings. The agencies initially permitted electronic signatures on Call 
Reports as an accommodation to provide institutions flexibility during 
the COVID-19 disruptions. The agencies are exploring options for the 
possible adoption of standard protocols for permitting the use of 
electronic signatures on Call Reports on a permanent basis.

[[Page 74790]]

C. Comments Received on Revisions Related to the Total Loss Absorbing 
Capacity Investments Rule

1. General Comments
    The agencies received comment letters from two banking trade 
associations in response to the proposed changes to the Call Reports 
and the FFIEC 101 in the October 2019 notice that would implement the 
rule changes proposed in the TLAC investments notice of proposed 
rulemaking (NPR).\13\
---------------------------------------------------------------------------

    \13\ 84 FR 13814 (April 8, 2019).
---------------------------------------------------------------------------

    Commenters requested that any changes to regulatory reporting 
related to the TLAC investments NPR--including changes to the Call 
Reports and FFIEC 101--be implemented after the effective date of the 
final rule. The agencies concur, and are not implementing associated 
changes to regulatory reports until the June 30, 2021, report date. The 
TLAC investments final rule's effective date is April 1, 2021.
    Commenters further requested that the agencies delay implementation 
of the proposed changes to the Call Reports and FFIEC 101 until 18 
months after the TLAC investments final rule becomes effective to 
provide more time to modify reporting systems and identify exposures to 
``covered debt instruments.'' In addition, commenters requested that 
the agencies not require application of the final rule's deduction 
treatment to an exposure to a global systemically important banking 
organization until the reporting banking organization has the 
information necessary to determine whether such exposure qualifies as a 
``covered debt instrument.''
    As discussed in the preamble of the TLAC investments final rule, 
the agencies maintain the supervisory expectation that large and 
internationally active banking organizations should be deeply 
knowledgeable of the securities exposures reported on their own balance 
sheets, if only for the purposes of prudent risk management. The final 
rule will become effective on April 1, 2021, and associated changes to 
the Call Reports and FFIEC 101 would be implemented as of the June 30, 
2021, report date. The agencies believe the effective date for the 
reporting changes provides sufficient time for advanced approaches 
banking organizations to evaluate investments in covered debt 
instruments and apply the final rule's deduction treatment. Further, 
the agencies believe that the effective date for the reporting changes 
provides sufficient time for these banking organizations to change 
reporting systems and accurately identify exposures to covered debt 
instruments for purposes of regulatory reporting.
2. Comments on FFIEC 101, Schedule A
    A commenter remarked that the agencies proposed to add new data 
item 56.a to Schedule A of the FFIEC 101 to implement the deduction of 
covered debt instruments; however, no analogous data item would be 
added to Schedule RC-R, Part I, of the Call Reports and Schedule HC-R, 
Part I, of the Consolidated Financial Statements for Holding Companies 
(FR Y-9C).\14\ This commenter recommended adding a similar data item to 
the Call Reports and FR Y-9C.
---------------------------------------------------------------------------

    \14\ OMB Number 7100-0128.
---------------------------------------------------------------------------

    While Schedule A of the FFIEC 101 collects similar information--
capital amounts, capital deductions, and ratios, among other items--as 
Schedule RC-R, Part I, of the Call Reports and Schedule HC-R, Part I, 
of the FR Y-9C, the information collected is not exactly the same. 
Given that only large and internationally active banking organizations 
complete the FFIEC 101, this form collects more granular information on 
capital deductions in comparison to the Call Reports and the FR Y-9C. 
The addition of item 56.a only on the FFIEC 101 is consistent with 
prior practice. Therefore, in an effort to minimize regulatory burden 
on reporting forms completed by smaller and less complex banking 
organizations, the agencies will not add an analogous data item to 
either the Call Reports or FR Y-9C. For Call Report purposes, as 
proposed in the October 2019 notice, the agencies would revise the 
instructions for items 11, 17, 24, and 45 of Schedule RC-R, Part I, in 
the FFIEC 031-FFIEC 041 instruction book to effectuate the deductions 
from regulatory capital for advanced approaches banking organizations 
related to investments in covered debt instruments and excluded covered 
debt instruments.
    One commenter remarked that the FR Y-9C included new reporting 
items for long-term and TLAC amounts, ratios, and the TLAC buffer. 
However, these items were not included in the agencies' proposed 
revisions to the FFIEC 101. This commenter requested that such data 
items not be added to the FFIEC 101, as this would constitute a 
duplicative reporting requirement and unnecessarily increase burden on 
banking organizations that complete the FFIEC 101. The agencies concur 
with this commenter, as the Board's TLAC rule applies to only holding 
companies. Therefore, such data items are only to be reported on the FR 
Y-9C and are not being added to the FFIEC 101.

D. Additional Instructional Matters

1. Uncollectible Accrued Interest Receivable Under ASC Topic 326
    In April 2019, the Financial Accounting Standards Board (FASB) 
issued ASU No. 2019-04, ``Codification Improvements to Topic 326, 
Financial Instruments--Credit Losses, Topic 815, Derivatives and 
Hedging, and Topic 825, Financial Instruments,'' which amended ASC 
Topic 326 to allow an institution to make certain accounting policy 
elections for accrued interest receivable balances, including a 
separate policy election, at the class of financing receivable or major 
security-type level, to charge off any uncollectible accrued interest 
receivable by reversing interest income, recognizing credit loss 
expense (i.e., provision expense), or a combination of both. The 
Glossary entry for ``Accrued Interest Receivable'' in the Call Report 
instructions currently references the following accounting policy 
elections in ASU 2019-04:
     Institutions may elect to separately present accrued 
interest receivable from the associated financial asset, and the 
accrued interest receivable is presented net of an allowance for credit 
losses (ACL), if any; and
     Institutions that charge off uncollectible accrued 
interest receivable in a timely manner, i.e., in accordance with the 
Glossary entry for ``Nonaccrual Status,'' may elect, at the class of 
financing receivable or the major security-type level, not to measure 
an ACL for accrued interest receivable.
    Although this Glossary entry does not currently provide for the 
ASU's separate accounting policy election for the charge-off of 
uncollectible accrued interest receivable at the class of financing 
receivable or major security-type level, this election is specifically 
addressed in the Interagency Policy Statement on Allowances for Credit 
Losses issued in May 2020.\15\ Accordingly, in the Call Report 
Supplemental Instructions issued by the FFIEC for the September 30, 
2020, report date,\16\ the FFIEC advised that, for Call Report 
purposes, an institution that has adopted ASC Topic 326 may make the 
charge-off election for accrued interest receivable balances in ASU 
2019-04 separately from the other elections for these balances in the 
ASU.

[[Page 74791]]

The FFIEC also stated that an institution may charge off uncollectible 
accrued interest receivable against an ACL for Call Report purposes.
---------------------------------------------------------------------------

    \15\ 85 FR 32991 (June 1, 2020).
    \16\ https://www.ffiec.gov/pdf/FFIEC_forms/FFIEC031_FFIEC041_FFIEC051_suppinst_202009.pdf.
---------------------------------------------------------------------------

    The agencies plan to update the Call Report Glossary entry for 
``Accrued Interest Receivable'' to align the instructions in this entry 
with the elections permitted under U.S. GAAP for institutions that have 
adopted ASC 326, which also would achieve consistency with the 
discussion of accrued interest receivable in the Interagency Policy 
Statement on Allowances for Credit Losses.
2. Shared Fees and Commissions From Securities-Related and Insurance 
Activities
    Institutions report income from certain securities-related and 
insurance activities in Call Report Schedule RI, Income Statement, 
items 5.d.(1) through (5) on the FFIEC 031 and the FFIEC 041; items 
5.d.(1) and (2) on the FFIEC 051. When an institution partners with, or 
otherwise joins with, a third party to conduct these securities-related 
or insurance activities, and any fees and commissions generated by 
these activities are shared with the third party, the Schedule RI 
instructions do not currently address the reporting treatment for these 
sharing arrangements. Consequently, institutions may report the gross 
fees and commissions from these activities in the appropriate subitem 
of Schedule RI, item 5, ``Other noninterest income,'' and the third 
party's share of the fees and commissions separately as expenses in 
Schedule RI, item 7.d, ``Other noninterest expense.'' Alternatively, 
institutions may report only their net share of the fees or commissions 
in the appropriate subitem of Schedule RI, item 5.
    The agencies believe that reporting shared fees and commissions on 
a net basis is preferable to gross reporting and is analogous to how 
income from certain other income-generating activities is reported in 
the Call Report income statement, including securitization income and 
servicing fee income, which are currently reported net of specified 
expenses and costs.
    This net approach better represents an institution's income from a 
securities-related or insurance activity engaged in jointly with a 
third party than when the third party's share of the fees and 
commissions is separately reported as a noninterest expense in another 
income statement data item. As a result, the agencies plan to clarify 
the existing Schedule RI instructions to ensure consistent reporting on 
a net basis of fees and commissions from securities-related and 
insurance activities that are shared with third parties. Furthermore, 
to avoid including repetitive language in the instructions for the 
multiple noninterest income items for income from securities-related 
and insurance activities in Schedule RI, a new non-reportable item 5.d 
captioned ``Income from securities-related and insurance activities'' 
would be added before the existing 5.d subitems on the Call Report 
forms and in the FFIEC 031-FFIEC 041 and FFIEC 051 instruction books. 
The reporting treatment for arrangements involving the sharing of fees 
and commissions with third parties arising from an institution's 
securities brokerage, investment banking, investment advisory, 
securities underwriting, insurance and annuity sales, insurance 
underwriting, or any other securities-related and insurance activities 
would be explained once in the new item 5.d instructions.
3. Pledged Equity Securities
    In January 2016, the FASB issued ASU 2016-01, ``Recognition and 
Measurement of Financial Assets and Financial Liabilities.'' As one of 
its main provisions, the ASU requires investments in equity securities, 
except those accounted for under the equity method and those that 
result in consolidation, to be measured at fair value with changes in 
fair value recognized in net income. Thus, the ASU eliminates the 
existing concept of available-for-sale (AFS) equity securities, which 
are measured at fair value with changes in fair value generally 
recognized in other comprehensive income. As of December 31, 2020, all 
institutions will have been required to adopt ASU 2016-01 and, as a 
consequence, must report equity securities with readily determinable 
fair values not held for trading in Schedule RC, Balance Sheet, item 
2.c, ``Equity securities with readily determinable fair values not held 
for trading,'' instead of Schedule RC-B, Securities, item 7, 
``Investments in mutual funds and other equity securities with readily 
determinable fair values.'' Accordingly, Schedule RC-B, item 7, is 
scheduled to be removed effective December 31, 2020.
    Institutions have long reported the amount of held-to-maturity and 
AFS securities reported in Schedule RC-B, items 1 through 7, that are 
pledged to secure deposits and for other purposes in Schedule RC-B, 
Memorandum item 1, ``Pledged securities.'' Considering that all 
institutions that previously reported their AFS equity securities in 
Schedule RC-B, item 7, now report these securities in Schedule RC, item 
2.c, the agencies are updating the instructions for Schedule RC-B, 
Memorandum item 1, and Schedule RC, item 2.c, to indicate that 
institutions should include in Memorandum item 1 the fair value of 
pledged equity securities with readily determinable fair values not 
held for trading that are now reported in Schedule RC, item 2.c. The 
wording of existing footnote 1 to Memorandum item 1 of Schedule RC-B on 
the Call Report forms will be similarly updated. These instructional 
clarifications would ensure that pledged equity securities formerly 
reportable as AFS equity securities would continue to be reported in 
Memorandum item 1 notwithstanding the change in accounting for equity 
securities under U.S. GAAP. Information on pledged securities is an 
important element of the agencies' analysis of an institution's 
liquidity risk.

III. Timing

    As stated in the July 2020 notice, the reporting revisions 
associated with the interim final rules, the final deposit insurance 
assessments rule, and the CARES Act provisions have been approved by 
OMB through the emergency clearance process, and these revisions have 
taken effect for the March 31, 2020, Call Report and FFIEC 101; the 
June 30, 2020, Call Report, FFIEC 101, and FFIEC 002; or the September 
30, 2020, FFIEC 002. Subject to OMB approval, the reporting revisions 
for which emergency approvals were received will remain in effect,\17\ 
but with instructional clarifications for the modification to the 
eligibility in the final rule for the 5-year 2020 CECL transition 
provision. Also subject to OMB approval, the additional revisions to 
the Call Report and FFIEC 002 instructions proposed in the July 2020 
notice that are related to the amendment of the Board's Regulation 
D,\18\ but with the removal of NOW account eligibility from the 
assessment criteria for ``savings deposit'' classification, would be 
effective for reporting beginning in the first quarter of 2021.
---------------------------------------------------------------------------

    \17\ As stated in the July 2020 notice, the collection of the 
new Call Report and FFIEC 002 data items for which emergency 
approvals were received is expected to be time-limited.
    \18\ 85 FR 44369 (July 22, 2020).
---------------------------------------------------------------------------

    For the accounting-related changes discussed in Section II.C of the 
July 2020 notice,\19\ the revisions would take effect March 31, 2021, 
except for the revisions for last-of-layer hedging, which would be 
implemented following the FASB's adoption of a final last-of-layer 
hedge accounting standard. A final

[[Page 74792]]

standard is not expected to be issued before the second half of 2021.
---------------------------------------------------------------------------

    \19\ 85 FR 44371-44374 (July 22, 2020).
---------------------------------------------------------------------------

    The reporting revisions to Schedule RC-M for the international 
remittance transfer items discussed in Section II.D of the July 2020 
notice \20\ would take effect March 31, 2021.\21\
---------------------------------------------------------------------------

    \20\ 85 FR 44374-44375 (July 22, 2020).
    \21\ Institutions will report current Schedule RC-M, item 16, in 
December 2020; will not report current Schedule RC-M, item 16, at 
all in June 2021; and will report the proposed revised Schedule RC-
M, item 16, in December 2021 (covering all of calendar year 2021).
---------------------------------------------------------------------------

    The reporting changes to the Call Reports and the FFIEC 101 for the 
TLAC investments final rule would take effect June 30, 2021.
    The specific wording of the captions for the new or revised Call 
Report, FFIEC 101, and FFIEC 002 data items discussed in the October 
2019 and July 2020 notices and this notice and the numbering of these 
data items should be regarded as preliminary.
    The Call Report instructional clarifications to the Glossary entry 
for ``Accrued Interest Receivable'' and Schedule RC-B for pledged 
equity securities would take effect December 31, 2020, while the 
instructional clarifications to Schedule RI for shared fees and 
commissions from securities-related and insurance activities would take 
effect March 31, 2021.

IV. Request for Comment

    Public comment is requested on all aspects of this joint notice. 
Comment is specifically invited on:
    (a) Whether the proposed revisions to the collections of 
information that are the subject of this notice are necessary for the 
proper performance of the agencies' functions, including whether the 
information has practical utility;
    (b) The accuracy of the agencies' estimates of the burden of the 
information collections as they are proposed to be revised, including 
the validity of the methodology and assumptions used;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    Comments submitted in response to this joint notice will be shared 
among the agencies.

Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.

    Board of Governors of the Federal Reserve System.
Ann E. Misback,
Secretary of the Board.

Federal Deposit Insurance Corporation.
James P. Sheesley,
Acting Assistant Executive Secretary.
[FR Doc. 2020-25743 Filed 11-20-20; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P