Proposed Agency Information Collection Activities; Comment Request, 8480-8486 [2021-02375]
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8480
Federal Register / Vol. 86, No. 23 / Friday, February 5, 2021 / Notices
Trainset’s safety appliances could be
gathered from another public hearing.
As a result, FRA finds that holding a
public hearing under Section 20306 in
response to Brightline’s current
exemption request is not necessary and
FRA intends to rely on the findings from
these previous hearings when
considering Brightline’s current
exemption request.
A copy of the petition, as well as any
written communications concerning the
petition, is available for review online at
www.regulations.gov.
Interested parties are invited to
participate in these proceedings by
submitting written views, data, or
comments. Although, for the reasons
discussed above, FRA does not
anticipate scheduling a public hearing,
if any interested parties desire an
opportunity for oral comment and a
public hearing, they should notify FRA,
in writing, before the end of the
comment period and specify the basis
for their request.
All communications concerning these
proceedings should identify the
appropriate docket number and may be
submitted by any of the following
methods:
• Website: https://
www.regulations.gov. Follow the online
instructions for submitting comments.
• Fax: 202–493–2251.
• Mail: Docket Operations Facility,
U.S. Department of Transportation
(DOT), 1200 New Jersey Ave. SE, W12–
140, Washington, DC 20590.
Communications received by March
22, 2021 will be considered by FRA
before final action is taken. Comments
received after that date will be
considered if practicable. Anyone can
search the electronic form of any written
communications and comments
received into any of our dockets by the
name of the individual submitting the
comment (or signing the document, if
submitted on behalf of an association,
business, labor union, etc.). Under 5
U.S.C. 553(c), DOT solicits comments
from the public to better inform its
processes. DOT posts these comments,
without edit, including any personal
information the commenter provides, to
www.regulations.gov, as described in
the system of records notice (DOT/ALL–
14 FDMS), which can be reviewed at
https://www.transportation.gov/privacy.
See also https://www.regulations.gov/
privacyNotice for the privacy notice of
regulations.gov.
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Issued in Washington, DC.
John Karl Alexy,
Associate Administrator for Railroad Safety,
Chief Safety Officer.
[FR Doc. 2021–02365 Filed 2–4–21; 8:45 am]
BILLING CODE 4910–06–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Docket Number FRA–2005–21179]
Petition for Waiver of Compliance
Under part 211 of title 49 Code of
Federal Regulations (CFR), this
document provides the public notice
that on December 3, 2020, Union Pacific
Railroad Company (UPRR) petitioned
the Federal Railroad Administration
(FRA) for an extension of a waiver of
compliance from certain provisions of
the Federal railroad safety regulations
contained at 49 CFR part 229, Railroad
Locomotive Safety Standards, and part
232, Brake System Safety Standards for
Freight and Other Non-Passenger Trains
and Equipment; End-Of-Train Devices.
FRA assigned the petition Docket
Number FRA–2005–21179.
Specifically, UPRR requests to extend
its relief from 49 CFR 229.49, Main
reservoir systems, and 49 CFR 232.103,
General Requirements for All Train
Brake Systems, for locomotives having a
safety valve on the main reservoir,
which prevents accumulation of more
than 25 psi above maximum working
pressure. UPRR states it has been
operating under the requirements set
forth in this waiver for 15 years and has
found no adverse effect on the safety of
operations.
A copy of the petition, as well as any
written communications concerning the
petition, is available for review online at
www.regulations.gov.
Interested parties are invited to
participate in these proceedings by
submitting written views, data, or
comments. FRA does not anticipate
scheduling a public hearing in
connection with these proceedings since
the facts do not appear to warrant a
hearing. If any interested parties desire
an opportunity for oral comment and a
public hearing, they should notify FRA,
in writing, before the end of the
comment period and specify the basis
for their request.
All communications concerning these
proceedings should identify the
appropriate docket number and may be
submitted by any of the following
methods:
• Website: https://
www.regulations.gov. Follow the online
instructions for submitting comments.
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• Fax: 202–493–2251.
• Mail: Docket Operations Facility,
U.S. Department of Transportation
(DOT), 1200 New Jersey Ave. SE, W12–
140, Washington, DC 20590.
• Hand Delivery: 1200 New Jersey
Ave. SE, Room W12–140, Washington,
DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal
Holidays.
Communications received by March
22, 2021 will be considered by FRA
before final action is taken. Comments
received after that date will be
considered if practicable.
Anyone can search the electronic
form of any written communications
and comments received into any of our
dockets by the name of the individual
submitting the comment (or signing the
document, if submitted on behalf of an
association, business, labor union, etc.).
Under 5 U.S.C. 553(c), DOT solicits
comments from the public to better
inform its processes. DOT posts these
comments, without edit, including any
personal information the commenter
provides, to www.regulations.gov, as
described in the system of records
notice (DOT/ALL–14 FDMS), which can
be reviewed at https://
www.transportation.gov/privacy. See
also https://www.regulations.gov/
privacyNotice for the privacy notice of
regulations.gov.
Issued in Washington, DC.
John Karl Alexy,
Associate Administrator for Railroad Safety,
Chief Safety Officer.
[FR Doc. 2021–02364 Filed 2–4–21; 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
Proposed Agency Information
Collection Activities; 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
Reduction Act of 1995 (PRA), the OCC,
the Board, and the FDIC (the agencies)
SUMMARY:
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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. The Federal Financial
Institutions Examination Council
(FFIEC), of which the agencies are
members, has approved the agencies’
publication for public comment of a
proposal to revise and extend the
Consolidated Reports of Condition and
Income (Call Reports) (FFIEC 031,
FFIEC 041, and FFIEC 051), which are
currently approved collections of
information. The FFIEC has also
approved the Board’s publication for
public comment, on behalf of the
agencies, of 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 agencies are requesting comment on
revisions to the reporting forms and
instructions for the Call Reports and the
FFIEC 002 related to the exclusion of
sweep deposits and certain other
deposits from reporting as brokered
deposits, as indicated by the agencies in
the Net Stable Funding Ratio (NSFR)
final rule and by the FDIC in its Final
Rule on Brokered Deposits and Interest
Rate Restrictions (brokered deposits
final rule), respectively. In addition, the
agencies are proposing revisions to the
Call Report and FFIEC 002 instructions
addressing brokered deposits to align
them with the brokered deposits final
rule. The changes to the Call Reports
and the FFIEC 002 are proposed to take
effect as of the June 30, 2021, report
date.
DATES: Comments must be submitted on
or before April 6, 2021.
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
and FFIEC 002 Deposit-Related
Revisions,’’ will be shared among the
agencies.
OCC: You may submit comments, 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, 400 7th Street
SW, Suite 3E–218, Washington, DC
20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
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Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘1557–
0081’’ 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 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.’’ 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 and
FFIEC 002 Deposit-Related Revisions,’’
by any of the following methods:
• Agency Website: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at:
https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Email: regs.comments@
federalreserve.gov. Include ‘‘Call Report
and FFIEC 002 Deposit-Related
Revisions’’ in the subject line of the
message.
• Fax: (202) 395–6974.
• 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.
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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 and
FFIEC 002 Deposit-Related Revisions,’’
by any of the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal/.
Follow the instructions for submitting
comments on the FDIC’s website.
• Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Email: comments@FDIC.gov.
Include ‘‘Call Report [and FFIEC 002]
Deposit-Related 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 officer for the agencies by mail to
the Office of Information and Regulatory
Affairs, U.S. Office of Management and
Budget, New Executive Office Building,
Room 10235, 725 17th Street NW,
Washington, DC 20503; by fax to (202)
395–6974; or by email to oira_
submission@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: For
further information about the proposed
revisions to the information collections
discussed in this notice, please contact
any of the agency staff whose names
appear below. In addition, copies of the
report forms for the Call Reports 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.
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
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Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Affected Reports
The proposed changes discussed
below affect the Call Reports and the
FFIEC 002.
A. Call Reports
The agencies propose to extend for
three years, with revision, their
information collections associated with
the FFIEC 031, FFIEC 041, and FFIEC
051 Call Reports.
Report Title: Consolidated Reports of
Condition and Income (Call Report).
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: 42.09 burden hours per
quarter to file.
Estimated Total Annual Burden:
187,048 burden hours to file.
Board
OMB Control No.: 7100–0036.
Estimated Number of Respondents:
739 state member banks.
Estimated Average Burden per
Response: 45.61 burden hours per
quarter to file.
Estimated Total Annual Burden:
134,823 burden hours to file.
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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: 40.13 burden hours per
quarter to file.
Estimated Total Annual Burden:
523,777 burden hours to file.
The estimated average burden hours
collectively reflect the estimates for the
FFIEC 031, the FFIEC 041, and the
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FFIEC 051 reports for each agency.
When the estimates are calculated by
type of report across the agencies, the
estimated average burden hours per
quarter are 86.45 (FFIEC 031), 55.52
(FFIEC 041), and 35.38 (FFIEC 051). The
changes to the Call Report forms and
instructions proposed in this notice
result in an increase in estimated
average burden hours per quarter by
type of report of 0.64 (FFIEC 031), 0.32
(FFIEC 041) and 0.11 (FFIEC 051). The
estimated burden per response for the
quarterly filings of the Call Report is an
average that varies by agency because of
differences in the composition of the
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
federal 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
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used to calculate the risk-based
assessments for insured depository
institutions.
B. 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:
FFIEC 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 also are used to augment
the bank credit, loan, and deposit
information needed for monetary policy
and other public policy purposes. In
addition, FFIEC 002 data are used to
calculate the risk-based assessments for
FDIC-insured U.S. branches of foreign
banks.
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
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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. Background
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1. Net Stable Funding Ratio Rulemaking
On October 20, 2020, the agencies
announced the adoption of a final rule
implementing the NSFR relevant for
certain large U.S. banking institutions
with $100 billion or more in total
consolidated assets.1 The final rule
assigned a 90 percent Available Stable
Funding (ASF) factor to affiliate sweep
deposits provided by a retail customer
or counterparty. Also, a 95 percent ASF
factor was assigned to affiliate sweep
deposits provided by a retail customer
or counterparty where the entire amount
of the sweep deposit is covered by
deposit insurance and where an
institution subject to the NSFR final rule
has demonstrated to the satisfaction of
its appropriate Federal banking agency
that withdrawal of the deposit is highly
unlikely to occur during a liquidity
stress event. Other sweep deposits (i.e.,
non-affiliate sweep deposits provided
by a retail customer or counterparty and
certain sweep deposits provided by
wholesale, non-financial customers)
were assigned a 50 percent ASF factor,
irrespective of the level of deposit
insurance. Additionally, in the
1 See the NSFR final rule attached to OCC News
Release 2020–138, Board Press Release, and FDIC
Press Release 116–2020, all of which are dated
October 20, 2020.
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Supplementary Information section to
the NSFR final rule, the agencies
indicated they will continue to review
the treatment of sweep deposits under
the Liquidity Coverage Ratio (LCR) and
NSFR rules.2 As part of this effort, the
agencies are proposing to collect new
data items in the Call Reports that
would help evaluate funding stability of
sweep deposits over time to determine
their appropriate treatment under
applicable liquidity regulations.
This proposal to capture new Call
Report data items for sweep deposits
would provide the agencies with several
benefits for its understanding of
liquidity risks relevant to institutions of
all sizes. First, the agencies would be
able to better observe funding dynamics,
between insured and partially insured
sweep deposits, thereby providing data
on the funding stability of partially
insured sweep deposits. Second, by
having institutions with $100 billion or
more in total assets report sweep
deposits for different types of
counterparties, any material differences
in the stability of different types of
counterparties that transact in sweep
deposits would be more transparent for
monitoring over time to determine their
appropriate treatment under liquidity
regulations.
Further, as noted in the NSFR final
rule, sweep deposits received from
affiliates have different stability
characteristics than sweep deposits
received from non-affiliates based on
the varying priority and reliability of
each affiliate and non-affiliate sweep
deposits. The proposed new data items
would provide the agencies with
observations about the varying liquidity
and other risk characteristics of these
different types of sweep deposits.
2. Brokered Deposits Rulemaking
On December 15, 2020, the FDIC
issued the brokered deposits final rule.3
This rule accomplished several
objectives, including establishing a new
framework for analyzing certain
provisions of the ‘‘deposit broker’’
definition,4 including ‘‘facilitating’’ and
‘‘primary purpose.’’ 5 The brokered
deposits final rule also reaffirmed the
intent stated in the interagency NSFR
final rule to update the Call Report to
collect information related to sweep
2 12 CFR part 50 (OCC); 12 CFR part 249 (Board);
12 CFR part 329 (FDIC) (referred to as the ‘‘liquidity
regulations’’).
3 86 FR 6742 (Jan. 22, 2021).
4 See Section 29(g) of the Federal Deposit
Insurance Act (FDI Act) (12 U.S.C. 1831f(g)).
5 The final rule also amended the FDIC’s
methodology for calculating the national rate, the
national rate cap, and the local market rate cap for
the interest rate restrictions under Section 29 that
apply to less than well-capitalized institutions.
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deposits.6 The FDIC plans to monitor
this data and could consider in the
future whether modifications to deposit
insurance assessment pricing are
warranted, consistent with the statutory
requirement that the assessments be
risk-based.
Relevant for brokered deposits,
Section 29 of the FDI Act provides that
an agent or nominee meets the primary
purpose exception to the ‘‘deposit
broker’’ definition when the primary
purpose of the agent or nominee is not
the placement of funds with depository
institutions. In the brokered deposits
final rule, the FDIC adopted revised
criteria for the primary purpose
exception based on the relationship
between the agent or nominee and its
customers. Specifically, the primary
purpose exception applies when the
primary purpose of the agent’s or
nominee’s business relationship with its
customers is not the placement of funds
with depository institutions. The
following business relationships were
identified in the brokered deposits final
rule as ‘‘designated exceptions’’ from
the deposit broker definition and are
business relationships in which, with
respect to a particular business line:
(1) Less than 25 percent of the total
assets that the agent or nominee has
under administration for its customers
is placed at depository institutions (25
percent test);
(2) 100 percent of depositors’ funds
that the agent or nominee places, or
assists in placing, at depository
institutions are placed into transactional
accounts that do not pay any fees,
interest, or other remuneration to the
depositor;
(3) a property management firm
places, or assists in placing, customer
funds into deposit accounts for the
primary purpose of providing property
management services;
(4) the agent or nominee places, or
assists in placing, customer funds into
deposit accounts for the primary
purpose of providing cross-border
clearing services to its customers;
(5) the agent or nominee places, or
assists in placing, customer funds into
deposit accounts for the primary
purpose of providing mortgage
servicing;
(6) a title company places, or assists
in placing, customer funds into deposit
accounts for the primary purpose of
facilitating real estate transactions;
(7) a qualified intermediary places, or
assists in placing, customer funds into
deposit accounts for the primary
purpose of facilitating exchanges of
6 86
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properties under section 1031 of the
Internal Revenue Code;
(8) a broker-dealer or futures
commission merchant places, or assists
in placing, customer funds into deposit
accounts in compliance with 17 CFR
240.15c3–3(e) or 17 CFR 1.20(a);
(9) the agent or nominee places, or
assists in placing, customer funds into
deposit accounts for the primary
purpose of posting collateral for
customers to secure credit-card loans;
(10) the agent or nominee places, or
assists in placing, customer funds into
deposit accounts for the primary
purpose of paying for or reimbursing
qualified medical expenses under
section 223 of the Internal Revenue
Code;
(11) the agent or nominee places, or
assists in placing, customer funds into
deposit accounts for the primary
purpose of investing in qualified tuition
programs under section 529 of the
Internal Revenue Code;
(12) the agent or nominee places, or
assists in placing, customer funds into
deposit accounts to enable participation
in the following tax-advantaged
programs: individual retirement
accounts under section 408(a) of the
Internal Revenue Code, Simple
individual retirement accounts under
section 408(p) of the Internal Revenue
Code, and Roth individual retirement
accounts under section 408A of the
Internal Revenue Code;
(13) a Federal, State, or local agency
places, or assists in placing, customer
funds into deposit accounts to deliver
funds to the beneficiaries of government
programs; and
(14) the agent or nominee places, or
assists in placing, customer funds into
deposit accounts pursuant to such other
relationships as the FDIC specifically
identifies as a designated business
relationship that meets the primary
purpose exception.
The brokered deposits final rule
discussed the FDIC’s consideration, as
part of the rulemaking process, for
requiring reporting of deposits that are
excluded from being reported as
brokered deposits because of the
application of the primary purpose
exception, which may include sweep
deposits placed at insured depository
institutions. Supervision and deposit
insurance assessments evaluate risk, in
part, based on data institutions report
on the Call Report. Institutions report
total brokered deposits but generally do
not distinguish between different types
of deposits that are currently classified
as brokered. As a result of the final rule,
the FDIC expects that some sweep
deposits that are currently brokered
deposits placed by third parties will
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meet the revised primary purpose
exception and therefore no longer be
reported on the Call Report as brokered.
Sweep deposits placed by a third party
that meet the primary purpose
exception may, in some cases, still pose
varying levels of funding risk as well as
elevated risk of loss to the deposit
insurance fund in the event of an
insured depository institution’s failure.7
As such, FDIC plans to monitor sweep
deposits that are not brokered due to the
primary purpose exception over time to
determine the supervisory and deposit
insurance assessment implications of
these deposits, if any. As such, the
agencies are proposing including an
additional Call Report item related to
sweep deposits placed by third parties
that meet the primary purpose
exception.
Question 1: The agencies recognize
that some deposits may no longer be
considered brokered deposits because
they are placed through third parties
that meet one of the designated
exceptions. Other than sweep deposits
placed through third parties that meet
one of the designated exceptions (e.g.,
the ‘‘25 percent test’’), should the
agencies collect information on the
amount of deposits placed under any of
the other designated exceptions? Similar
to sweep deposits, the agencies would
monitor this information to determine
the supervisory and/or deposit
insurance assessment implications of
these deposits, if any.
Question 2: If the agencies collect data
on designated exceptions other than
deposit sweeps placed through a third
party that meets a designated exception,
are there alternative approaches that the
agencies should consider for collecting
data? For example, should the agencies
consider reporting based upon certain
material thresholds or concentrations in
deposits gathered through any one or
more of the designated exceptions?
Question 3: Do insured depository
institutions intend, in the ordinary
course of business, to internally
maintain information on the amount of
deposits placed under each designated
exception?
7 As described in the preamble to the brokered
deposits final rule, ‘‘Nothing in the final rule is
intended to limit the FDIC’s ability to review or take
supervisory action with respect to funding-related
matters, including funding concentrations, that may
affect the safety and soundness of individual banks
or the industry generally. FDIC examiners will
continue to review funding as part of safety and
soundness examinations, regardless of whether or
not the deposits used by the [insured depository
institution] IDI are brokered.’’
PO 00000
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B. Proposed Data Items To Capture
Sweep Deposits and Deposits
Categorized as Meeting the Primary
Purpose Exception and Related
Instructions
As noted above, under the NSFR Final
Rule and the brokered deposits final
rule, the agencies stated their intent to
update the Call Report to obtain data
that will assist in better evaluations of
funding stability for sweep deposits
over time to determine their appropriate
treatment under applicable liquidity
regulations and to assess the risk factors
associated with sweep deposits for
determining their deposit insurance
assessment implications, if any.
Accordingly, the agencies propose to
add the following data items applicable
to all institutions that file the Call
Report and all insured institutions that
file the FFIEC 002. Specifically, the
following five data items would be
added to Schedule RC–E, Deposit
Liabilities, on all three versions of the
Call Report (FFIEC 031, FFIEC 041, and
FFIEC 051) and would be applicable to
insured depository institutions of all
sizes. These five data items would be
collected quarterly on the FFIEC 031
and 041 Call Reports and semiannually
on the FFIEC 051 Call Report.
• Memorandum item 1.h.(1) for fully
insured, affiliate sweep deposits to
capture sweep deposits that are
deposited in accordance with a contract
between a customer or counterparty and
the reporting institution, a controlled
subsidiary of the reporting institution,
or a company that is a controlled
subsidiary of the same top-tier company
of which the reporting institution is a
controlled subsidiary, where the entire
amount of the deposit is covered by
deposit insurance;
• Memorandum item 1.h.(2) for not
fully insured, affiliate sweep deposits to
capture sweep deposits that are
deposited in accordance with a contract
between a customer or counterparty and
the reporting institution, a controlled
subsidiary of the reporting institution,
or a company that is a controlled
subsidiary of the same top-tier company
of which the reporting institution is a
controlled subsidiary, where less than
the entire amount of the deposit is
covered by deposit insurance;
• Memorandum item 1.h.(3) for fully
insured, non-affiliate sweep deposits to
capture sweep deposits that are not
deposited in accordance with a contract
between a customer or counterparty and
the reporting institution, a controlled
subsidiary of the reporting institution,
or a company that is a controlled
subsidiary of the same top-tier company
of which the reporting institution is a
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Federal Register / Vol. 86, No. 23 / Friday, February 5, 2021 / Notices
controlled subsidiary, where the entire
amount of the deposit is covered by
deposit insurance;
• Memorandum item 1.h.(4) for not
fully insured, non-affiliate sweep
deposits to capture sweep deposits that
are not deposited in accordance with a
contract between a customer or
counterparty and the reporting
institution, a controlled subsidiary of
the reporting institution, or a company
that is a controlled subsidiary of the
same top-tier company of which the
reporting institution is a controlled
subsidiary, where less than the entire
amount of the deposit is covered by
deposit insurance;
• Memorandum item 1.i for total
sweep deposits that are not brokered
due to a primary purpose exception,
which corresponds to the 25 percent test
exception above.
In addition, the following four data
items would be added to Schedule RC–
E, Deposit Liabilities, on the FFIEC 031
Call Report only and would be
completed quarterly only by institutions
with $100 billion or more in total
assets.8
• Memorandum item 1.h.(1)(a) to
capture the portion of fully insured,
affiliate sweep deposits reported in
Memorandum item 1.h.(1) that are
deposited in accordance with a contract
between a retail customer or
counterparty and the reporting
institution, a controlled subsidiary of
the reporting institution, or a company
that is a controlled subsidiary of the
same top-tier company of which the
reporting institution is a controlled
subsidiary, where the entire amount of
the deposit is covered by deposit
insurance;
• Memorandum item 1.h.(2)(a) to
capture the portion of not fully insured,
affiliate sweep deposits reported in
Memorandum item 1.h.(2) that are
deposited in accordance with a contract
between a retail customer or
counterparty and the reporting
institution, a controlled subsidiary of
the reporting institution, or a company
that is a controlled subsidiary of the
same top-tier company of which the
reporting institution is a controlled
subsidiary, where less than the entire
amount of the deposit is covered by
deposit insurance;
• Memorandum item 1.h.(3)(a) to
capture the portion of fully insured,
non-affiliate sweep deposits reported in
Memorandum item 1.h.(3) that are
8 The $100 billion asset-size test is based on the
total assets reported as of June 30 each year to
determine whether an institution not otherwise
required to file the FFIEC 031 Call Report must file
the FFIEC 031 report form beginning in March of
the following year.
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18:53 Feb 04, 2021
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deposited by a retail customer or
counterparty and not in accordance
with a contract between the retail
customer or counterparty and the
reporting institution, a controlled
subsidiary of the reporting institution,
or a company that is a controlled
subsidiary of the same top-tier company
of which the reporting institution is a
controlled subsidiary, where the entire
amount of the deposit is covered by
deposit insurance; and
• Memorandum item 1.h.(4)(a) to
capture the portion of not fully insured,
non-affiliate sweep deposits reported in
Memorandum item 1.h.(4) that are
deposited by a retail customer or
counterparty and not in accordance
with a contract between the retail
customer or counterparty and the
reporting institution, a controlled
subsidiary of the reporting institution,
or a company that is a controlled
subsidiary of the same top-tier company
of which the reporting institution is a
controlled subsidiary, where less than
the entire amount of the deposit is
covered by deposit insurance.
On the FFIEC 002, the first five data
items identified above would be added
to Schedule O, Other Data for Deposit
Insurance Assessments, as
Memorandum items 8.a through 8.d and
9 and would be reported quarterly by
insured U.S. branches of foreign banks
of all sizes.
C. Definitions
The agencies propose to revise the
Call Report and FFIEC 002 instructions
to add the following definition for
‘‘sweep deposit’’: A sweep deposit
means a deposit held at the reporting
institution by a customer or
counterparty through a contractual
feature that automatically transfers to
the reporting institution from another
regulated financial company at the close
of each business day amounts identified
under the agreement governing the
account from which the amount is being
transferred.9 Note: This definition
would be distinctly separate from the
existing ‘‘retail sweep arrangements’’
and ‘‘retail sweep programs’’ definitions
in the Glossary entry for ‘‘Deposits’’ in
the Call Report and FFIEC 002
instructions.
Furthermore, consistent with the
discussion of the data items proposed to
be collected in the Call Report and the
FFIEC 002 in section II.B. above,
‘‘affiliate sweep deposits’’ would be
defined as sweep deposits that are
9 See 79 FR 61524 for the LCR Rule’s definition
of brokered sweep deposit which was renamed to
‘‘sweep deposit’’ when the NSFR rule was finalized
in October 2020. https://www.fdic.gov/news/board/
2020/2020-10-20-notice-dis-b-fr.pdf.
PO 00000
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Fmt 4703
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8485
deposited in accordance with a contract
between a customer or counterparty and
a reporting institution, a reporting
institution’s consolidated subsidiary, or
a company that is a consolidated
subsidiary of the same top-tier company
of which the reporting institution is a
consolidated subsidiary. ‘‘Non-affiliate
sweep deposits’’ would be defined as
sweep deposits that are not deposited in
accordance with a contract between a
customer or counterparty and a
reporting institution, a reporting
institution’s consolidated subsidiary, or
a company that is a consolidated
subsidiary of the same top-tier company
of which the reporting institution is a
consolidated subsidiary.
The agencies also propose to revise
the Call Report instructions to add the
LCR rule’s definition 10 of ‘‘retail
customer or counterparty,’’ which reads,
‘‘A retail customer or counterparty
means a customer or counterparty that
is:
(1) An individual; or
(2) A business customer, but solely if
and to the extent that: (i) The reporting
institution manages its transactions with
the business customer, including
deposits, unsecured funding, and credit
facility and liquidity facility
transactions, in the same way it
manages its transactions with
individuals; (ii) Transactions with the
business customer have liquidity risk
characteristics that are similar to
comparable transactions with
individuals; and (iii) The total aggregate
funding raised from the business
customer is less than $1.5 million.’’
In addition, the Call Report
instructions would add the LCR rule’s
definition of ‘‘wholesale customer or
counterparty,’’ which reads, ‘‘A
wholesale customer or counterparty
means a customer or counterparty that
is not a retail customer or
counterparty.’’ 11
Question 4: For institutions subject to
the liquidity regulations, such rules
delineate between retail and wholesale
customers or counterparties. Is the
proposal appropriate to require
institutions with $100 billion or more in
total assets that are not subject to the
LCR or NSFR rule to report sweep
deposits in the Call Report based on
whether they are received from a retail
or wholesale customer? Would it also be
beneficial for institutions with less than
$100 billion in total assets to report
sweep deposits based on whether they
are received from a retail or wholesale
counterparty? Are these collections also
appropriate for depository institutions
10 79
11 79
E:\FR\FM\05FEN1.SGM
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FR 61439, 61528 (Oct. 10, 2014).
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already subject to the LCR and NSFR
rules with total consolidated assets
between $10 and $100 billion?
As such, would the LCR rule’s
definition of retail customer or
counterparty be appropriate to apply to
reporting by institutions with less than
$100 billion in total assets, including
that (i) the reporting institution manages
its transactions with a business
customer, including deposits, unsecured
funding, and credit facility and liquidity
facility transactions, in the same way it
manages its transactions with
individuals; and (ii) transactions with
the business customer have liquidity
risk characteristics that are similar to
comparable transactions with
individuals?
D. Timing
Beginning with the June 30, 2021,
report date, the agencies propose all
institutions filing the FFIEC 031, FFIEC
041, and FFIEC 051 Call Reports would
complete Schedule RC–E, Memorandum
items 1.h.(1) through 1.h.(4) and 1.i, to
report the deposit data discussed in
section II.B. of this Supplementary
Information section. Thereafter, as noted
above, these data items would be
collected quarterly on the FFIEC 031
and 041 Call Reports and semiannually
on the FFIEC 051 Call Report. Beginning
as of the same report date, all
institutions filing the FFIEC 031 Call
Report with $100 billion or more in total
assets would complete Schedule RC–E,
Memorandum items 1.h.(1)(a), 1.h.(2)(a),
1.h.(3)(a), and 1.h.(4)(a) to report the
additional deposit data discussed in
section II.B.
Beginning with the June 30, 2021,
report date, insured U.S. branches of
foreign banks would complete the five
Memorandum items applicable to all
institutions filing Call Reports in FFIEC
002 Schedule O quarterly as discussed
in section II.B. above.
The brokered deposits final rule takes
effect April 1, 2021. Full compliance
with this final rule is extended to
January 1, 2022. The extended
compliance date is intended to provide
sufficient time for institutions to put in
place systems to implement the new
regulatory regime. The Call Report will
provide two sets of instructions that will
allow institutions to either (1) comply
with the new regulation starting on the
June 30, 2021, report date, or (2)
continue to rely upon existing FDIC staff
advisory opinions or other
interpretations that predated the
brokered deposits final rule in
determining whether deposits placed by
or through an agent or nominee are
brokered deposits for purposes of
reporting brokered deposit data in the
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18:53 Feb 04, 2021
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Call Report through the December 31,
2021, report date.
The specific wording of the captions
for the proposed new Call Report
Schedule RC–E Memorandum items and
FFIEC 002 Schedule O Memorandum
items discussed in this proposal and the
numbering of these Memorandum items
should be regarded as preliminary.
III. Request for Comment
Public comment is requested on all
aspects of this joint notice including the
questions that were provided in the
earlier sections. In addition to the
questions included above 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.
Bao Nguyen,
Principal Deputy Chief Counsel, Office of the
Comptroller of the Currency.
Board of Governors of the Federal Reserve
System.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
Dated at Washington, DC, on or about
January 29, 2021.
Federal Deposit Insurance Corporation.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021–02375 Filed 2–4–21; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
DEPARTMENT OF VETERANS
AFFAIRS
VA Market Assessment Listening
Sessions
AGENCY:
PO 00000
Department of Veterans Affairs.
Frm 00150
Fmt 4703
Sfmt 4703
Announcement for Public
Meetings Regarding VA Health Care.
ACTION:
Pursuant to the John S.
McCain III, Daniel K. Akaka, and
Samuel R. Johnson VA Maintaining
Internal Systems and Strengthening
Integrated Outside Networks (MISSION)
Act of 2018 (the VA MISSION Act), the
Veterans Health Administration (VHA)
Chief Strategy Office (CSO) will be
holding public virtual listening sessions
with Veterans, Veterans Service
Organizations, Community Veterans
Engagement Boards (CVEBs) and other
interested stakeholders. The primary
objectives of the sessions are to learn
about Veterans’ experiences with VA
health care and how Veterans want care
to be delivered in the future. Feedback
will be used to develop
recommendations regarding the
modernization or realignment of VHA
facilities. The recommendations will be
submitted to the Asset and
Infrastructure Review (AIR) Commission
after approval by the Secretary.
FOR FURTHER INFORMATION CONTACT:
Valerie Mattison Brown, Chief Strategy
Officer, Veterans Health Administration,
Department of Veterans Affairs, 810
Vermont Avenue NW, Washington, DC
20420, 202–461–7115. This is not a tollfree number.
DATES: The listening sessions will start
in early calendar year 2021 and
continue for several months. The dates,
times, and links to the listening sessions
will be publicly posted. A link to the
posting can be obtained by contacting
VHAMAQs@va.gov.
The sessions will be held virtually as
a WebEx Event, and it will be open to
the public to participate. Information
about the meeting and registration to
attend can be obtained by emailing
VHAMAQs@va.gov.
SUPPLEMENTARY INFORMATION: The
sessions are being held to meet
requirements in the VA MISSION Act of
2018, related to developing
recommendations for the modernization
or realignment of VHA facilities and
conducting market assessments. VA is
required to conduct market assessments
under 7330C of title 38, United States
Code, as added by Section 106(a) of the
VA MISSION Act and Section 203 of the
VA MISSION Act. The market
assessments will inform
recommendations for the modernization
or realignment of VHA facilities to be
approved by the Secretary and
submitted to the AIR Commission,
established by the VA MISSION Act.
The law requires the President to submit
nominations for the AIR Commission to
the Senate not later May 31, 2021, prior
SUMMARY:
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]]>Agencies
[Federal Register Volume 86, Number 23 (Friday, February 5, 2021)]
[Notices]
[Pages 8480-8486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02375]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
Proposed Agency Information Collection Activities; 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)
[[Page 8481]]
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. The Federal
Financial Institutions Examination Council (FFIEC), of which the
agencies are members, has approved the agencies' publication for public
comment of a proposal to revise and extend the Consolidated Reports of
Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC
051), which are currently approved collections of information. The
FFIEC has also approved the Board's publication for public comment, on
behalf of the agencies, of 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 agencies are requesting
comment on revisions to the reporting forms and instructions for the
Call Reports and the FFIEC 002 related to the exclusion of sweep
deposits and certain other deposits from reporting as brokered
deposits, as indicated by the agencies in the Net Stable Funding Ratio
(NSFR) final rule and by the FDIC in its Final Rule on Brokered
Deposits and Interest Rate Restrictions (brokered deposits final rule),
respectively. In addition, the agencies are proposing revisions to the
Call Report and FFIEC 002 instructions addressing brokered deposits to
align them with the brokered deposits final rule. The changes to the
Call Reports and the FFIEC 002 are proposed to take effect as of the
June 30, 2021, report date.
DATES: Comments must be submitted on or before April 6, 2021.
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 and FFIEC 002 Deposit-Related Revisions,'' will be shared
among the agencies.
OCC: You may submit comments, by any of the following methods:
Email: [email protected].
Mail: Chief Counsel's Office, Office of the Comptroller of
the Currency, Attention: 1557-0081, 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'' 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
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.'' 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
and FFIEC 002 Deposit-Related Revisions,'' by any of the following
methods:
Agency Website: https://www.federalreserve.gov. Follow the
instructions for submitting comments at: https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Email: [email protected]. Include ``Call
Report and FFIEC 002 Deposit-Related Revisions'' in the subject line of
the message.
Fax: (202) 395-6974.
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
and FFIEC 002 Deposit-Related 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 [and FFIEC
002] Deposit-Related 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 officer for the agencies by mail to the Office of Information
and Regulatory Affairs, U.S. Office of Management and Budget, New
Executive Office Building, Room 10235, 725 17th Street NW, Washington,
DC 20503; by fax to (202) 395-6974; or by email to
[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 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.
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
[[Page 8482]]
Deposit Insurance Corporation, 550 17th Street NW, Washington, DC
20429.
SUPPLEMENTARY INFORMATION:
I. Affected Reports
The proposed changes discussed below affect the Call Reports and
the FFIEC 002.
A. Call Reports
The agencies propose to extend for three years, with revision,
their information collections associated with the FFIEC 031, FFIEC 041,
and FFIEC 051 Call Reports.
Report Title: Consolidated Reports of Condition and Income (Call
Report).
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: 42.09 burden hours per
quarter to file.
Estimated Total Annual Burden: 187,048 burden hours to file.
Board
OMB Control No.: 7100-0036.
Estimated Number of Respondents: 739 state member banks.
Estimated Average Burden per Response: 45.61 burden hours per
quarter to file.
Estimated Total Annual Burden: 134,823 burden hours to file.
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: 40.13 burden hours per
quarter to file.
Estimated Total Annual Burden: 523,777 burden hours to file.
The estimated average burden hours collectively reflect the
estimates for the FFIEC 031, the FFIEC 041, and the FFIEC 051 reports
for each agency. When the estimates are calculated by type of report
across the agencies, the estimated average burden hours per quarter are
86.45 (FFIEC 031), 55.52 (FFIEC 041), and 35.38 (FFIEC 051). The
changes to the Call Report forms and instructions proposed in this
notice result in an increase in estimated average burden hours per
quarter by type of report of 0.64 (FFIEC 031), 0.32 (FFIEC 041) and
0.11 (FFIEC 051). The estimated burden per response for the quarterly
filings of the Call Report is an average that varies by agency because
of differences in the composition of the 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 federal 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 the risk-based assessments for insured depository
institutions.
B. 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: FFIEC 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 also are used to augment
the bank credit, loan, and deposit information needed for monetary
policy and other public policy purposes. In addition, FFIEC 002 data
are used to calculate the risk-based assessments for FDIC-insured U.S.
branches of foreign banks.
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
[[Page 8483]]
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. Background
1. Net Stable Funding Ratio Rulemaking
On October 20, 2020, the agencies announced the adoption of a final
rule implementing the NSFR relevant for certain large U.S. banking
institutions with $100 billion or more in total consolidated assets.\1\
The final rule assigned a 90 percent Available Stable Funding (ASF)
factor to affiliate sweep deposits provided by a retail customer or
counterparty. Also, a 95 percent ASF factor was assigned to affiliate
sweep deposits provided by a retail customer or counterparty where the
entire amount of the sweep deposit is covered by deposit insurance and
where an institution subject to the NSFR final rule has demonstrated to
the satisfaction of its appropriate Federal banking agency that
withdrawal of the deposit is highly unlikely to occur during a
liquidity stress event. Other sweep deposits (i.e., non-affiliate sweep
deposits provided by a retail customer or counterparty and certain
sweep deposits provided by wholesale, non-financial customers) were
assigned a 50 percent ASF factor, irrespective of the level of deposit
insurance. Additionally, in the Supplementary Information section to
the NSFR final rule, the agencies indicated they will continue to
review the treatment of sweep deposits under the Liquidity Coverage
Ratio (LCR) and NSFR rules.\2\ As part of this effort, the agencies are
proposing to collect new data items in the Call Reports that would help
evaluate funding stability of sweep deposits over time to determine
their appropriate treatment under applicable liquidity regulations.
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\1\ See the NSFR final rule attached to OCC News Release 2020-
138, Board Press Release, and FDIC Press Release 116-2020, all of
which are dated October 20, 2020.
\2\ 12 CFR part 50 (OCC); 12 CFR part 249 (Board); 12 CFR part
329 (FDIC) (referred to as the ``liquidity regulations'').
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This proposal to capture new Call Report data items for sweep
deposits would provide the agencies with several benefits for its
understanding of liquidity risks relevant to institutions of all sizes.
First, the agencies would be able to better observe funding dynamics,
between insured and partially insured sweep deposits, thereby providing
data on the funding stability of partially insured sweep deposits.
Second, by having institutions with $100 billion or more in total
assets report sweep deposits for different types of counterparties, any
material differences in the stability of different types of
counterparties that transact in sweep deposits would be more
transparent for monitoring over time to determine their appropriate
treatment under liquidity regulations.
Further, as noted in the NSFR final rule, sweep deposits received
from affiliates have different stability characteristics than sweep
deposits received from non-affiliates based on the varying priority and
reliability of each affiliate and non-affiliate sweep deposits. The
proposed new data items would provide the agencies with observations
about the varying liquidity and other risk characteristics of these
different types of sweep deposits.
2. Brokered Deposits Rulemaking
On December 15, 2020, the FDIC issued the brokered deposits final
rule.\3\ This rule accomplished several objectives, including
establishing a new framework for analyzing certain provisions of the
``deposit broker'' definition,\4\ including ``facilitating'' and
``primary purpose.'' \5\ The brokered deposits final rule also
reaffirmed the intent stated in the interagency NSFR final rule to
update the Call Report to collect information related to sweep
deposits.\6\ The FDIC plans to monitor this data and could consider in
the future whether modifications to deposit insurance assessment
pricing are warranted, consistent with the statutory requirement that
the assessments be risk-based.
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\3\ 86 FR 6742 (Jan. 22, 2021).
\4\ See Section 29(g) of the Federal Deposit Insurance Act (FDI
Act) (12 U.S.C. 1831f(g)).
\5\ The final rule also amended the FDIC's methodology for
calculating the national rate, the national rate cap, and the local
market rate cap for the interest rate restrictions under Section 29
that apply to less than well-capitalized institutions.
\6\ 86 FR 6742 (Jan. 22, 2021).
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Relevant for brokered deposits, Section 29 of the FDI Act provides
that an agent or nominee meets the primary purpose exception to the
``deposit broker'' definition when the primary purpose of the agent or
nominee is not the placement of funds with depository institutions. In
the brokered deposits final rule, the FDIC adopted revised criteria for
the primary purpose exception based on the relationship between the
agent or nominee and its customers. Specifically, the primary purpose
exception applies when the primary purpose of the agent's or nominee's
business relationship with its customers is not the placement of funds
with depository institutions. The following business relationships were
identified in the brokered deposits final rule as ``designated
exceptions'' from the deposit broker definition and are business
relationships in which, with respect to a particular business line:
(1) Less than 25 percent of the total assets that the agent or
nominee has under administration for its customers is placed at
depository institutions (25 percent test);
(2) 100 percent of depositors' funds that the agent or nominee
places, or assists in placing, at depository institutions are placed
into transactional accounts that do not pay any fees, interest, or
other remuneration to the depositor;
(3) a property management firm places, or assists in placing,
customer funds into deposit accounts for the primary purpose of
providing property management services;
(4) the agent or nominee places, or assists in placing, customer
funds into deposit accounts for the primary purpose of providing cross-
border clearing services to its customers;
(5) the agent or nominee places, or assists in placing, customer
funds into deposit accounts for the primary purpose of providing
mortgage servicing;
(6) a title company places, or assists in placing, customer funds
into deposit accounts for the primary purpose of facilitating real
estate transactions;
(7) a qualified intermediary places, or assists in placing,
customer funds into deposit accounts for the primary purpose of
facilitating exchanges of
[[Page 8484]]
properties under section 1031 of the Internal Revenue Code;
(8) a broker-dealer or futures commission merchant places, or
assists in placing, customer funds into deposit accounts in compliance
with 17 CFR 240.15c3-3(e) or 17 CFR 1.20(a);
(9) the agent or nominee places, or assists in placing, customer
funds into deposit accounts for the primary purpose of posting
collateral for customers to secure credit-card loans;
(10) the agent or nominee places, or assists in placing, customer
funds into deposit accounts for the primary purpose of paying for or
reimbursing qualified medical expenses under section 223 of the
Internal Revenue Code;
(11) the agent or nominee places, or assists in placing, customer
funds into deposit accounts for the primary purpose of investing in
qualified tuition programs under section 529 of the Internal Revenue
Code;
(12) the agent or nominee places, or assists in placing, customer
funds into deposit accounts to enable participation in the following
tax-advantaged programs: individual retirement accounts under section
408(a) of the Internal Revenue Code, Simple individual retirement
accounts under section 408(p) of the Internal Revenue Code, and Roth
individual retirement accounts under section 408A of the Internal
Revenue Code;
(13) a Federal, State, or local agency places, or assists in
placing, customer funds into deposit accounts to deliver funds to the
beneficiaries of government programs; and
(14) the agent or nominee places, or assists in placing, customer
funds into deposit accounts pursuant to such other relationships as the
FDIC specifically identifies as a designated business relationship that
meets the primary purpose exception.
The brokered deposits final rule discussed the FDIC's
consideration, as part of the rulemaking process, for requiring
reporting of deposits that are excluded from being reported as brokered
deposits because of the application of the primary purpose exception,
which may include sweep deposits placed at insured depository
institutions. Supervision and deposit insurance assessments evaluate
risk, in part, based on data institutions report on the Call Report.
Institutions report total brokered deposits but generally do not
distinguish between different types of deposits that are currently
classified as brokered. As a result of the final rule, the FDIC expects
that some sweep deposits that are currently brokered deposits placed by
third parties will meet the revised primary purpose exception and
therefore no longer be reported on the Call Report as brokered. Sweep
deposits placed by a third party that meet the primary purpose
exception may, in some cases, still pose varying levels of funding risk
as well as elevated risk of loss to the deposit insurance fund in the
event of an insured depository institution's failure.\7\ As such, FDIC
plans to monitor sweep deposits that are not brokered due to the
primary purpose exception over time to determine the supervisory and
deposit insurance assessment implications of these deposits, if any. As
such, the agencies are proposing including an additional Call Report
item related to sweep deposits placed by third parties that meet the
primary purpose exception.
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\7\ As described in the preamble to the brokered deposits final
rule, ``Nothing in the final rule is intended to limit the FDIC's
ability to review or take supervisory action with respect to
funding-related matters, including funding concentrations, that may
affect the safety and soundness of individual banks or the industry
generally. FDIC examiners will continue to review funding as part of
safety and soundness examinations, regardless of whether or not the
deposits used by the [insured depository institution] IDI are
brokered.''
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Question 1: The agencies recognize that some deposits may no longer
be considered brokered deposits because they are placed through third
parties that meet one of the designated exceptions. Other than sweep
deposits placed through third parties that meet one of the designated
exceptions (e.g., the ``25 percent test''), should the agencies collect
information on the amount of deposits placed under any of the other
designated exceptions? Similar to sweep deposits, the agencies would
monitor this information to determine the supervisory and/or deposit
insurance assessment implications of these deposits, if any.
Question 2: If the agencies collect data on designated exceptions
other than deposit sweeps placed through a third party that meets a
designated exception, are there alternative approaches that the
agencies should consider for collecting data? For example, should the
agencies consider reporting based upon certain material thresholds or
concentrations in deposits gathered through any one or more of the
designated exceptions?
Question 3: Do insured depository institutions intend, in the
ordinary course of business, to internally maintain information on the
amount of deposits placed under each designated exception?
B. Proposed Data Items To Capture Sweep Deposits and Deposits
Categorized as Meeting the Primary Purpose Exception and Related
Instructions
As noted above, under the NSFR Final Rule and the brokered deposits
final rule, the agencies stated their intent to update the Call Report
to obtain data that will assist in better evaluations of funding
stability for sweep deposits over time to determine their appropriate
treatment under applicable liquidity regulations and to assess the risk
factors associated with sweep deposits for determining their deposit
insurance assessment implications, if any. Accordingly, the agencies
propose to add the following data items applicable to all institutions
that file the Call Report and all insured institutions that file the
FFIEC 002. Specifically, the following five data items would be added
to Schedule RC-E, Deposit Liabilities, on all three versions of the
Call Report (FFIEC 031, FFIEC 041, and FFIEC 051) and would be
applicable to insured depository institutions of all sizes. These five
data items would be collected quarterly on the FFIEC 031 and 041 Call
Reports and semiannually on the FFIEC 051 Call Report.
Memorandum item 1.h.(1) for fully insured, affiliate sweep
deposits to capture sweep deposits that are deposited in accordance
with a contract between a customer or counterparty and the reporting
institution, a controlled subsidiary of the reporting institution, or a
company that is a controlled subsidiary of the same top-tier company of
which the reporting institution is a controlled subsidiary, where the
entire amount of the deposit is covered by deposit insurance;
Memorandum item 1.h.(2) for not fully insured, affiliate
sweep deposits to capture sweep deposits that are deposited in
accordance with a contract between a customer or counterparty and the
reporting institution, a controlled subsidiary of the reporting
institution, or a company that is a controlled subsidiary of the same
top-tier company of which the reporting institution is a controlled
subsidiary, where less than the entire amount of the deposit is covered
by deposit insurance;
Memorandum item 1.h.(3) for fully insured, non-affiliate
sweep deposits to capture sweep deposits that are not deposited in
accordance with a contract between a customer or counterparty and the
reporting institution, a controlled subsidiary of the reporting
institution, or a company that is a controlled subsidiary of the same
top-tier company of which the reporting institution is a
[[Page 8485]]
controlled subsidiary, where the entire amount of the deposit is
covered by deposit insurance;
Memorandum item 1.h.(4) for not fully insured, non-
affiliate sweep deposits to capture sweep deposits that are not
deposited in accordance with a contract between a customer or
counterparty and the reporting institution, a controlled subsidiary of
the reporting institution, or a company that is a controlled subsidiary
of the same top-tier company of which the reporting institution is a
controlled subsidiary, where less than the entire amount of the deposit
is covered by deposit insurance;
Memorandum item 1.i for total sweep deposits that are not
brokered due to a primary purpose exception, which corresponds to the
25 percent test exception above.
In addition, the following four data items would be added to
Schedule RC-E, Deposit Liabilities, on the FFIEC 031 Call Report only
and would be completed quarterly only by institutions with $100 billion
or more in total assets.\8\
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\8\ The $100 billion asset-size test is based on the total
assets reported as of June 30 each year to determine whether an
institution not otherwise required to file the FFIEC 031 Call Report
must file the FFIEC 031 report form beginning in March of the
following year.
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Memorandum item 1.h.(1)(a) to capture the portion of fully
insured, affiliate sweep deposits reported in Memorandum item 1.h.(1)
that are deposited in accordance with a contract between a retail
customer or counterparty and the reporting institution, a controlled
subsidiary of the reporting institution, or a company that is a
controlled subsidiary of the same top-tier company of which the
reporting institution is a controlled subsidiary, where the entire
amount of the deposit is covered by deposit insurance;
Memorandum item 1.h.(2)(a) to capture the portion of not
fully insured, affiliate sweep deposits reported in Memorandum item
1.h.(2) that are deposited in accordance with a contract between a
retail customer or counterparty and the reporting institution, a
controlled subsidiary of the reporting institution, or a company that
is a controlled subsidiary of the same top-tier company of which the
reporting institution is a controlled subsidiary, where less than the
entire amount of the deposit is covered by deposit insurance;
Memorandum item 1.h.(3)(a) to capture the portion of fully
insured, non-affiliate sweep deposits reported in Memorandum item
1.h.(3) that are deposited by a retail customer or counterparty and not
in accordance with a contract between the retail customer or
counterparty and the reporting institution, a controlled subsidiary of
the reporting institution, or a company that is a controlled subsidiary
of the same top-tier company of which the reporting institution is a
controlled subsidiary, where the entire amount of the deposit is
covered by deposit insurance; and
Memorandum item 1.h.(4)(a) to capture the portion of not
fully insured, non-affiliate sweep deposits reported in Memorandum item
1.h.(4) that are deposited by a retail customer or counterparty and not
in accordance with a contract between the retail customer or
counterparty and the reporting institution, a controlled subsidiary of
the reporting institution, or a company that is a controlled subsidiary
of the same top-tier company of which the reporting institution is a
controlled subsidiary, where less than the entire amount of the deposit
is covered by deposit insurance.
On the FFIEC 002, the first five data items identified above would
be added to Schedule O, Other Data for Deposit Insurance Assessments,
as Memorandum items 8.a through 8.d and 9 and would be reported
quarterly by insured U.S. branches of foreign banks of all sizes.
C. Definitions
The agencies propose to revise the Call Report and FFIEC 002
instructions to add the following definition for ``sweep deposit'': A
sweep deposit means a deposit held at the reporting institution by a
customer or counterparty through a contractual feature that
automatically transfers to the reporting institution from another
regulated financial company at the close of each business day amounts
identified under the agreement governing the account from which the
amount is being transferred.\9\ Note: This definition would be
distinctly separate from the existing ``retail sweep arrangements'' and
``retail sweep programs'' definitions in the Glossary entry for
``Deposits'' in the Call Report and FFIEC 002 instructions.
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\9\ See 79 FR 61524 for the LCR Rule's definition of brokered
sweep deposit which was renamed to ``sweep deposit'' when the NSFR
rule was finalized in October 2020. https://www.fdic.gov/news/board/2020/2020-10-20-notice-dis-b-fr.pdf.
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Furthermore, consistent with the discussion of the data items
proposed to be collected in the Call Report and the FFIEC 002 in
section II.B. above, ``affiliate sweep deposits'' would be defined as
sweep deposits that are deposited in accordance with a contract between
a customer or counterparty and a reporting institution, a reporting
institution's consolidated subsidiary, or a company that is a
consolidated subsidiary of the same top-tier company of which the
reporting institution is a consolidated subsidiary. ``Non-affiliate
sweep deposits'' would be defined as sweep deposits that are not
deposited in accordance with a contract between a customer or
counterparty and a reporting institution, a reporting institution's
consolidated subsidiary, or a company that is a consolidated subsidiary
of the same top-tier company of which the reporting institution is a
consolidated subsidiary.
The agencies also propose to revise the Call Report instructions to
add the LCR rule's definition \10\ of ``retail customer or
counterparty,'' which reads, ``A retail customer or counterparty means
a customer or counterparty that is:
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\10\ 79 FR 61439, 61527 (Oct. 10, 2014).
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(1) An individual; or
(2) A business customer, but solely if and to the extent that: (i)
The reporting institution manages its transactions with the business
customer, including deposits, unsecured funding, and credit facility
and liquidity facility transactions, in the same way it manages its
transactions with individuals; (ii) Transactions with the business
customer have liquidity risk characteristics that are similar to
comparable transactions with individuals; and (iii) The total aggregate
funding raised from the business customer is less than $1.5 million.''
In addition, the Call Report instructions would add the LCR rule's
definition of ``wholesale customer or counterparty,'' which reads, ``A
wholesale customer or counterparty means a customer or counterparty
that is not a retail customer or counterparty.'' \11\
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\11\ 79 FR 61439, 61528 (Oct. 10, 2014).
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Question 4: For institutions subject to the liquidity regulations,
such rules delineate between retail and wholesale customers or
counterparties. Is the proposal appropriate to require institutions
with $100 billion or more in total assets that are not subject to the
LCR or NSFR rule to report sweep deposits in the Call Report based on
whether they are received from a retail or wholesale customer? Would it
also be beneficial for institutions with less than $100 billion in
total assets to report sweep deposits based on whether they are
received from a retail or wholesale counterparty? Are these collections
also appropriate for depository institutions
[[Page 8486]]
already subject to the LCR and NSFR rules with total consolidated
assets between $10 and $100 billion?
As such, would the LCR rule's definition of retail customer or
counterparty be appropriate to apply to reporting by institutions with
less than $100 billion in total assets, including that (i) the
reporting institution manages its transactions with a business
customer, including deposits, unsecured funding, and credit facility
and liquidity facility transactions, in the same way it manages its
transactions with individuals; and (ii) transactions with the business
customer have liquidity risk characteristics that are similar to
comparable transactions with individuals?
D. Timing
Beginning with the June 30, 2021, report date, the agencies propose
all institutions filing the FFIEC 031, FFIEC 041, and FFIEC 051 Call
Reports would complete Schedule RC-E, Memorandum items 1.h.(1) through
1.h.(4) and 1.i, to report the deposit data discussed in section II.B.
of this Supplementary Information section. Thereafter, as noted above,
these data items would be collected quarterly on the FFIEC 031 and 041
Call Reports and semiannually on the FFIEC 051 Call Report. Beginning
as of the same report date, all institutions filing the FFIEC 031 Call
Report with $100 billion or more in total assets would complete
Schedule RC-E, Memorandum items 1.h.(1)(a), 1.h.(2)(a), 1.h.(3)(a), and
1.h.(4)(a) to report the additional deposit data discussed in section
II.B.
Beginning with the June 30, 2021, report date, insured U.S.
branches of foreign banks would complete the five Memorandum items
applicable to all institutions filing Call Reports in FFIEC 002
Schedule O quarterly as discussed in section II.B. above.
The brokered deposits final rule takes effect April 1, 2021. Full
compliance with this final rule is extended to January 1, 2022. The
extended compliance date is intended to provide sufficient time for
institutions to put in place systems to implement the new regulatory
regime. The Call Report will provide two sets of instructions that will
allow institutions to either (1) comply with the new regulation
starting on the June 30, 2021, report date, or (2) continue to rely
upon existing FDIC staff advisory opinions or other interpretations
that predated the brokered deposits final rule in determining whether
deposits placed by or through an agent or nominee are brokered deposits
for purposes of reporting brokered deposit data in the Call Report
through the December 31, 2021, report date.
The specific wording of the captions for the proposed new Call
Report Schedule RC-E Memorandum items and FFIEC 002 Schedule O
Memorandum items discussed in this proposal and the numbering of these
Memorandum items should be regarded as preliminary.
III. Request for Comment
Public comment is requested on all aspects of this joint notice
including the questions that were provided in the earlier sections. In
addition to the questions included above 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.
Bao Nguyen,
Principal Deputy Chief Counsel, Office of the Comptroller of the
Currency.
Board of Governors of the Federal Reserve System.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
Dated at Washington, DC, on or about January 29, 2021.
Federal Deposit Insurance Corporation.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-02375 Filed 2-4-21; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P
