Agency Information Collection Activities; Submission for OMB Review; Comment Request, 27961-27966 [2021-10853]

Download as PDF khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 86, No. 98 / Monday, May 24, 2021 / Notices Friedman, Senior Policy Analyst, Division of Depositor and Consumer Protection, 202–898–7168, dfriedman@ fdic.gov; or Chris Ledoux, Corporate Expert, Legal Division, 202–898–3535, cledoux@fdic.gov. Bureau: Albert D. Chang, Senior Counsel, Office of Innovation, (202) 450–7299; Patrice Alexander Ficklin, Fair Lending Director, Office of Fair Lending & Equal Opportunity, (202) 435–7205; and Kathryn Lazarev, Senior Counsel, Office of Regulations, (202) 435–7700. If you require this document in an alternative electronic format, please contact CFPB_Accessibility@ cfpb.gov. NCUA: Timothy Segerson, Deputy Director, Office of Examination & Insurance, 703–518–6300; Chrisanthy Loizos, Senior Trial Attorney, Office of General Counsel, 703–518–6540; Joe Goldberg, Director, Division of Consumer Compliance Policy and Outreach, 703–518–1142. SUPPLEMENTARY INFORMATION: On March 31, 2021, the agencies published in the Federal Register 2 a document inviting comments on financial institutions’ use of artificial intelligence (AI), including machine learning (ML). The request for information (RFI) was issued to obtain respondents’ views on financial institutions’ use of AI in their provision of services to customers and for other business or operational purposes; appropriate governance, risk management, and controls over AI; and any challenges in developing, adopting, and managing AI. The RFI also solicited respondents’ views on the use of AI in financial services to assist in determining whether any clarifications from the agencies would be helpful for financial institutions’ use of AI in a safe and sound manner and in compliance with applicable laws and regulations, including those related to consumer protection. The document stated that the comment period would close on June 1, 2021. The agencies have received requests to extend the comment period. An extension of the comment period will provide additional opportunity for the public to analyze the RFI and prepare comments to address the questions posed by the agencies. Therefore, the agencies are extending the end of the comment period for the RFI from June 1, 2021 until July 1, 2021. Bureau: The Acting Director of the Bureau, David Uejio, having reviewed and approved this document, is delegating the authority to electronically 2 Request for Information and Comment on Financial Institutions’ Use of Artificial Intelligence, including Machine Learning. 86 FR 16837–38 (March 31, 2021). VerDate Sep<11>2014 17:32 May 21, 2021 Jkt 253001 sign this document to Grace Feola, a Bureau Federal Register Liaison, for purposes of publication in the Federal Register. Michael J. Hsu, Acting Comptroller of the Currency. By order of the Board of Governors of the Federal Reserve System. Ann Misback, Secretary of the Board. Federal Deposit Insurance Corporation. Dated at Washington, DC, on May 13, 2021. James P. Sheesley, Assistant Executive Secretary. Grace Feola, Federal Register Liaison, Bureau of Consumer Financial Protection. Melane Conyers-Ausbrooks, Secretary of the Board, National Credit Union Administration. [FR Doc. 2021–10861 Filed 5–21–21; 8:45 am] BILLING CODE 4810–33–P; 6210–01–P; 4810–AM–P; 6714–01–P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency FEDERAL RESERVE SYSTEM FEDERAL DEPOSIT INSURANCE CORPORATION Agency Information Collection Activities; Submission for OMB Review; Comment Request Office of the Comptroller of the Currency (OCC), Treasury; Board of Governors of the Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC). ACTION: Joint notice and request for comment. AGENCY: In accordance with the requirements of the Paperwork Reduction Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. On December 18, 2020, and February 5, 2021, the agencies, under the auspices of the Federal Financial Institutions Examination Council (FFIEC), requested public comment for 60 days on proposals to revise and extend the Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC 051), the Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002), and the Report of SUMMARY: PO 00000 Frm 00137 Fmt 4703 Sfmt 4703 27961 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), all of which are currently approved collections of information. After considering the comments received on the notices, the agencies are proceeding with the proposed revisions to the reporting forms and instructions related to the FDIC’s amendments to the deposit insurance assessment system, effective with the June 30, 2021, report date, and the exclusion of sweep deposits and certain other deposits from reporting as brokered deposits, effective with the September 30, 2021, report date. The agencies hereby give notice of their plan to submit to OMB a request to approve the revision and extension of these information collections, and again invite comment on the renewal. DATES: Comments must be submitted on or before June 23, 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 Deposit Insurance Assessment-Related and Deposit-Related Revisions,’’ will be shared among the agencies. Written comments and recommendations for the proposed information collections should be sent within 30 days of publication of this notice to www.reginfo.gov/public/do/ PRAMain. You may find these particular information collections by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. Comments should also be sent to: OCC: You may submit comments, which should refer to ‘‘Call Report Deposit Insurance Assessment-Related and Deposit-Related Revisions,’’ by any of the following methods: • Email: prainfo@occ.treas.gov. • Mail: Chief Counsel’s Office, Office of the Comptroller of the Currency, Attention: 1557–0081 and 1557–0239, 400 7th Street SW, Suite 3E–218, Washington, DC 20219. • Hand Delivery/Courier: 400 7th Street SW, Suite 3E–218, Washington, DC 20219. Instructions: You must include ‘‘OCC’’ as the agency name and ‘‘1557– 0081’’ 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 E:\FR\FM\24MYN1.SGM 24MYN1 khammond on DSKJM1Z7X2PROD with NOTICES 27962 Federal Register / Vol. 86, No. 98 / Monday, May 24, 2021 / Notices 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 Deposit Insurance Assessment-Related and Deposit-Related Revisions,’’ by any of the following methods: • Agency Website: http://www.federal reserve.gov. Follow the instructions for submitting comments at: http:// www.federalreserve.gov/generalinfo/ foia/ProposedRegs.cfm. • Email: regs.comments@ federalreserve.gov. Include ‘‘Call Report Deposit Insurance Assessment-Related and Deposit-Related Revisions’’ in the subject line of the message. • Fax: (202) 452–3819 or (202) 452– 3102. • Mail: Ann E. Misback, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 20551. All public comments are available on the Board’s website at https:// www.federalreserve.gov/apps/foia/ proposedregs.aspx as submitted, unless modified for technical reasons. Accordingly, your comments will not be edited to remove any identifying or contact information. FDIC: You may submit comments, which should refer to ‘‘Call Report Deposit Insurance Assessment-Related and Deposit-Related Revisions,’’ by any of the following methods: • Agency Website: https:// www.fdic.gov/regulations/laws/federal/. VerDate Sep<11>2014 17:32 May 21, 2021 Jkt 253001 Follow the instructions for submitting comments on the FDIC’s website. • Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments. • Email: comments@FDIC.gov. Include ‘‘Call Report Deposit Insurance Assessment-Related and DepositRelated 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. 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 and instructions 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 Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. SUPPLEMENTARY INFORMATION: Table of Contents I. Report Summary A. Call Report B. FFIEC 002 and 002S II. Current Actions A. Background B. Comments Received on the Proposed Call Report Revisions C. Revised Memorandum Item for NonBrokered Sweep Deposits III. Timing IV. Request for Comment PO 00000 Frm 00138 Fmt 4703 Sfmt 4703 I. Report Summary A. Call Report The agencies propose to extend for three years, with revision, the FFIEC 031, FFIEC 041, and FFIEC 051 Call Reports. Report Title: Consolidated Reports of Condition and Income. 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: 1,090 national banks and federal savings associations. Estimated Average Burden per Response: 42.10 burden hours per quarter to file. Estimated Total Annual Burden: 183,556 burden hours to file. Board OMB Control No.: 7100–0036. Estimated Number of Respondents: 728 state member banks. Estimated Average Burden per Response: 45.62 burden hours per quarter to file. Estimated Total Annual Burden: 132,845 burden hours to file. FDIC OMB Control No.: 3064–0052. Estimated Number of Respondents: 3,209 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: 515,109 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 86.49 (FFIEC 031), 55.53 (FFIEC 041), and 35.38 (FFIEC 051). The deposit insurance assessment-related change to the FFIEC 031 and FFIEC 041 E:\FR\FM\24MYN1.SGM 24MYN1 Federal Register / Vol. 86, No. 98 / Monday, May 24, 2021 / Notices khammond on DSKJM1Z7X2PROD with NOTICES Call Report forms and instructions in this notice would not have a material impact on the existing burden estimates. The deposit insurance assessmentrelated change in this notice does not propose any changes to the FFIEC 051. The deposit-related revisions to the Call Report forms and instructions in this notice result in an increase in estimated average burden hours per quarter by type of report of 0.68 (FFIEC 031), 0.33 (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 national and state-chartered institutions, such as conducting monetary policy, ensuring financial stability, and administering federal deposit insurance. Call Reports are the source of the most current statistical data available for identifying areas of focus for on-site and off-site examinations. Among other purposes, the agencies use Call Report data in evaluating institutions’ corporate applications, including interstate merger and acquisition applications for which the agencies are required by law to determine whether the resulting institution would control more than 10 percent of the total amount of deposits of insured depository institutions in the United States. Call Report data also are VerDate Sep<11>2014 17:32 May 21, 2021 Jkt 253001 used to calculate institutions’ deposit insurance assessments and national banks’ and federal savings associations’ semiannual assessment fees. B. FFIEC 002 and 002S The Board proposes to extend for three years, with revision, 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: Extension and revision of currently approved collections. The proposed deposit-related revisions to the FFIEC 002 form and instructions in this notice are applicable to only a limited number of insured U.S. branches and agencies of foreign banking organizations and would not have a material impact on the existing burden estimates. 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. PO 00000 Frm 00139 Fmt 4703 Sfmt 4703 27963 branch that is managed or controlled by a U.S. branch or agency of the foreign bank. A non-U.S. branch is managed or controlled by a U.S. branch or agency if a majority of the responsibility for business decisions, including but not limited to decisions with regard to lending or asset management or funding or liability management, or the responsibility for recordkeeping in respect of assets or liabilities for that foreign branch resides at the U.S. branch or agency. A separate FFIEC 002S must be completed for each managed or controlled non-U.S. branch. The FFIEC 002S must be filed quarterly along with the U.S. branch or agency’s FFIEC 002. These information collections are mandatory (12 U.S.C. 3105(c)(2), 1817(a)(1) and (3), and 3102(b)). Except for select sensitive items, the FFIEC 002 is not given confidential treatment; the FFIEC 002S is given confidential treatment (5 U.S.C. 552(b)(4) and (8)). The data from both reports are used for (1) monitoring deposit and credit transactions of U.S. residents; (2) monitoring the impact of policy changes; (3) analyzing structural issues concerning foreign bank activity in U.S. markets; (4) understanding flows of banking funds and indebtedness of developing countries in connection with data collected by the International Monetary Fund and the Bank for International Settlements that are used in economic analysis; and (5) assisting in the supervision of U.S. offices of foreign banks. The Federal Reserve System collects and processes these reports on behalf of all three agencies. II. Current Actions A. Background On December 18, 2020, the agencies proposed revisions to the Call Reports 1 (FFIEC 031 and FFIEC 041 only) to implement the FDIC’s proposed amendments to the deposit insurance assessment system applicable to all large and highly complex IDIs published on December 7, 2020.2 The amendments to the rule were subsequently finalized without change on February 16, 2021, and published in the Federal Register 1 85 FR 82580 (Dec. 18, 2020) (December 2020 notice). 2 85 FR 78794 (Dec. 7, 2020). For deposit insurance assessment purposes, a large bank is generally defined as an institution with $10 billion or more in total assets, a small bank is generally defined as an institution with less than $10 billion in total assets, and a highly complex bank is generally defined as an institution that has $50 billion or more in total assets and is controlled by a parent holding company that has $500 billion or more in total assets, or is a processing bank or trust company. See 12 CFR 327.8(e), (f), and (g). E:\FR\FM\24MYN1.SGM 24MYN1 khammond on DSKJM1Z7X2PROD with NOTICES 27964 Federal Register / Vol. 86, No. 98 / Monday, May 24, 2021 / Notices on February 25, 2021.3 The amendments to the assessment system remove the double counting of the applicable portion of the CECL transitional amounts that is added to retained earnings for regulatory capital purposes and attributable to the allowance for credit losses on loans and leases held for investment in certain financial measures that are calculated using the sum of Tier 1 capital and reserves, and also from the loss severity measure. These measures are used to determine assessment rates for large and highly complex institutions. To implement these amendments, the agencies proposed one new, temporary memorandum item and corresponding changes to the FFIEC 031 and FFIEC 041 versions of the Call Report forms and instructions. The agencies would remove the proposed new Call Report item when all large and highly complex institutions are no longer using a CECL transition. The comment period for the December 2020 notice ended on February 16, 2021. On February 5, 2021, the agencies proposed revisions to the reporting forms and instructions for the Call Reports and FFIEC 002 that would allow (1) evaluation of the funding stability of sweep deposits over time to determine their appropriate treatment under liquidity regulations,4 and (2) assessment of risk factors associated with sweep deposits that may no longer be reported as brokered deposits.5 Accordingly, the agencies proposed adding five data items to Schedule RC–E, Deposit Liabilities, on all three versions of the Call Report (FFIEC 031, FFIEC 041, and FFIEC 051) applicable to all institutions and to Schedule O of the FFIEC 002 applicable to insured agencies and branches of foreign banking organizations. In addition, 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. The agencies also proposed revising the Call Report instructions addressing brokered deposits to align them with the brokered deposits final rule. The changes to the Call Reports were proposed to take effect as of the June 30, 2021, report date. The comment period for the February 2021 notice ended on April 6, 2021. 3 See https://www.fdic.gov/news/financialinstitution-letters/2021/fil21007.html and 86 FR 11391 (Feb. 25, 2021). 4 See 12 CFR part 50 (OCC), 12 CFR part 249 (Board) and 12 CFR part 329 (FDIC). 5 See 12 CFR 337.6 and 86 FR 8480 (Feb. 5, 2021) (February 2021 notice). VerDate Sep<11>2014 17:32 May 21, 2021 Jkt 253001 B. Comments Received on the Proposed Call Report Revisions 1. Deposit Insurance AssessmentRelated Revision The agencies received one comment on the December 2020 notice to revise the Call Report to implement the FDIC’s proposed amendments to the deposit insurance assessment system. The commenter discussed another potential double-counting in the computation of the leverage ratio. This comment is not specifically applicable to the deposit insurance assessment regulations or the related revision to the Call Report addressed in the December 2020 notice. The calculation of the leverage ratio in the Call Report is aligned with the calculation pursuant to the agencies’ regulatory capital rules, which is outside the scope of the proposed changes. To improve the clarity of the reporting changes for deposit insurance assessments, the agencies plan to add examples to the instructions for Schedule RC–O, Memorandum item 5, to show what an institution that has elected the three-year or the five-year 2020 CECL transition provision would report in the new Memorandum item. These examples would be added at the end of the instructions for the Schedule RC–O, Other Data for Deposit Insurance Assessments. After considering the comments on the deposit insurance assessmentrelated revision, the agencies are proceeding with the changes to the Call Reports as proposed with the added examples to show what an institution would report in the new Memorandum item in Schedule RC–O (FFIEC 031 and FFIEC 041 only). 2. Deposit-Related Revisions The agencies received one comment letter from three trade associations on the February 2021 proposal to revise the Call Report forms and instructions related to sweep deposits. The commenters recommended that institutions that report sweep deposits on the Board’s Complex Institution Liquidity Monitoring Report (FR 2052a) should not be required to provide comparable data on the Call Report. Additionally, the commenters requested that the proposed Call Report memorandum items receive confidential treatment consistent with the treatment of comparable data items provided on the FR 2052a. The commenters further requested that the proposed Call Report memorandum items be delayed until the March 2022 report date. The commenters requested that the agencies PO 00000 Frm 00140 Fmt 4703 Sfmt 4703 confirm whether institutions are permitted to incorporate the new brokered deposits regime for purposes of reporting beginning with the June 30, 2021 Call Report, even if such institutions are still in the primary purpose exception application process. Finally, the commenters requested clarification with respect to the definition of ‘‘not fully insured’’ as it would apply to the proposed Call Report memorandum items. The FR 2052a is required to be filed on a consolidated basis by (1) certain top-tier bank holding companies and top-tier covered savings and loan holding companies that in each case have consolidated assets of $100 billion or more, and (2) certain foreign banking organizations with combined U.S. assets of $100 billion or more. The largest and most complex FR 2052a filers additionally submit data in respect to a limited number of subsidiaries, including large depository institution subsidiaries, and U.S. branches. The FR 2052a report is collected on a daily or monthly basis, depending on the size of the reporting organization.6 In contrast, the proposed Call Report data collection would reflect deposit data from all depository institutions regardless of size. The Call Report data also would be collected on a quarterly or semiannual basis. Due to the differences in scope and frequency of the reporting, the agencies do not believe that there is material duplication between the data requested. Regarding the comment on confidential treatment, the Board notes that the information collected in the FR 2052a is collected as part of the agencies’ supervisory framework and is provided confidential treatment for several reasons. The FR 2052a collection is reported on a frequent basis and includes a wide range of financial exposures providing detailed information on the liquidity profile of reporting firms (e.g., financing of securities positions and prime brokerage activities). Additionally, FR 2052a data is used as a supervisory tool to monitor individual organizations’ overall liquidity profile, including during periods of stress, and may reflect risks and exposures between a respondent’s 6 In general, banking organizations subject to the full liquidity coverage ratio requirements of the agencies’ Liquidity Coverage Ratio (LCR) rule, including all Category I and II banking organizations and certain Category III banking organizations (as such categories are defined in the rule), must submit the FR 2052a data on a daily basis while other banking organizations with total consolidated assets greater than $100 billion, including certain Category III and all Category IV banking organizations, must submit FR 2052a data on a monthly basis. E:\FR\FM\24MYN1.SGM 24MYN1 khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 86, No. 98 / Monday, May 24, 2021 / Notices material legal entities. As a result, public availability of an individual banking organization’s detailed and frequent FR 2052a data could result in disclosure of proprietary business information. By comparison, the proposed Call Report data items would be reported on a less frequent basis (quarterly or semiannually) by all individual depository institutions and do not include the same extensive scope of items reported under the FR 2052a collection. The agencies therefore do not believe public disclosure of the proposed Call Report data items would result in disclosure of proprietary business information which would harm a bank’s competitive position. For example, because the proposed Call Report data items would be reported on a quarterly or semiannual basis and constitute limited information about a bank’s liquidity risk or structural funding, it would not be possible for the public to determine an individual bank’s Liquidity Coverage Ratio (LCR) or NSFR at any point within a quarter.7 Therefore, the agencies are not proposing to adopt confidential treatment for the proposed Call Report memorandum items. With regard to the implementation date of the revisions to the Call Reports and FFIEC 002, the agencies acknowledge that institutions may need additional time to make system changes to capture the relevant data. Accordingly, in response to comments, the agencies are proposing to delay the implementation date for the new memorandum items in the Call Report and FFIEC 002 forms and instructions until the September 30, 2021, reporting date rather than for June 30, 2021, as originally proposed. As the collection in the FFIEC 051 occurs semiannually, FFIEC 051 filers will report the new data items for the first time for the December 31, 2021, reporting date. This delay should provide institutions with sufficient additional time to put in place systems to begin reporting on the proposed memorandum items. The agencies will provide clarifications in the Call Report Glossary and Schedule RC–E, Deposit Liabilities instructions in response to comments related to reporting deposits as brokered in instances where a primary purpose application is pending or where an institution wishes to rely upon a previous staff advisory opinion or interpretation through December 31, 2021. 7 Holding companies subject to the agencies’ LCR and NSFR rules must publicly disclose their consolidated LCR and NSFR on a quarterly basis. VerDate Sep<11>2014 17:32 May 21, 2021 Jkt 253001 With respect to pending applications for a primary purpose exception, an IDI that receives deposits from a third party that is a ‘‘deposit broker’’ where an application for a primary purpose exception is pending, would report such deposits as brokered deposits if and until the FDIC approves such application. This is because the deposits being placed by or through a third party that is a deposit broker are brokered deposits unless the third party meets an exception to the definition. In response to the commenters’ request, the agencies are clarifying the definition of ‘‘not fully insured’’ as it would apply to the deposit-related Call Report revisions. As described in the agencies’ February 2021 notice, the proposal aligns with the final NSFR rule and revised Call Report Glossary definition of ‘‘Sweep Deposits.’’ Under the agencies’ LCR and NSFR rules, a sweep deposit is considered ‘‘fully insured’’ if the entire amount of the sweep deposit is covered by deposit insurance provided by the FDIC under the Federal Deposit Insurance Act.8 A sweep deposit is ‘‘not fully insured’’ if less than the entire balance of the sweep deposit is covered by FDIC insurance. The brokered deposits final rule included clarifications to the definition of ‘‘deposit broker’’ in Section 29(g) of the Federal Deposit Insurance Act and Section 337.6(a)(5) of the FDIC’s regulations. The meaning of the term ‘‘brokered deposit’’ depends on the meaning of the term ‘‘deposit broker.’’ The term ‘‘Brokered Deposits’’ is defined in the Call Report Glossary, and the term ‘‘deposit broker’’ is also addressed in instructions to Schedule RC–E, Deposit Liabilities. Consistent with the agencies’ proposal to revise the Call Report instructions in the February 2021 notice, the agencies plan to update the Glossary and Schedule RC–E instructions to align with the clarifications to the definition of ‘‘deposit broker’’ in the brokered deposits final rule. After considering the comments, the agencies are clarifying the proposed instructions as described above and proceeding with the clarifications in the Call Report Glossary and Schedule RC– E instructions related to the definition of ‘‘deposit broker.’’ The agencies are also making several technical corrections to proposed revisions in the February 2021 notice. In that notice, the agencies proposed to revise the Call Report instructions to add the LCR rule’s definition 9 of ‘‘retail customer or counterparty,’’ but 8 12 9 79 PO 00000 U.S.C. 1811 et seq. FR 61439, 61527 (Oct. 10, 2014). Frm 00141 Fmt 4703 Sfmt 4703 27965 inadvertently excluded references to living or testamentary trusts as part of that definition. The agencies will correct the Call Report instructions to include the complete definition of retail customer or counterparty from the agencies’ LCR rule. In the February 2021 notice, the agencies stated that the Call Report instructions would add the LCR rule’s definition of ‘‘wholesale customer or counterparty.’’ Because there are no proposed line items that require the definition of wholesale customer or counterparty, the agencies do not plan to make this change in the Call Report instructions. C. Revised Memorandum Item for NonBrokered Sweep Deposits As part of the February 2021 notice, the agencies proposed including the following data item that would be collected quarterly on the FFIEC 031 and FFIEC 041 Call Reports and semiannually on the FFIEC 051 Call Report: Æ 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. As provided in the February 2021 notice, the agencies intend to collect this data to monitor sweep deposits that are not brokered due to the primary purpose exception to determine the supervisory and deposit insurance assessment implications of these deposits, if any. However, the agencies note that certain sweep deposits placed by third parties with IDIs may not be classified as brokered when the third party has an exclusive deposit placement arrangement with only one IDI.10 For example, a broker dealer that is sweeping excess customer balances to only one IDI will not meet the deposit broker definition and therefore would not need to rely upon a primary purpose exception. Only reflecting exclusions related to the primary purpose exception could significantly limit the agencies’ ability to monitor nonbrokered sweep deposits. Therefore, to ensure a more complete collection of sweep deposits that are excluded from being reported as brokered, the agencies are proposing the following memo item in place of the proposed item above from the February 2021 notice: Æ Memorandum item 1.i for total sweep deposits that are not brokered deposits. Updates to the Glossary and instructions will provide clarifications 10 12 E:\FR\FM\24MYN1.SGM CFR 337.6(a)(5). 24MYN1 27966 Federal Register / Vol. 86, No. 98 / Monday, May 24, 2021 / Notices for determining whether certain third parties that place sweep deposits at IDIs are deposit brokers and the exceptions to the definition of deposit broker. khammond on DSKJM1Z7X2PROD with NOTICES IV. Timing As stated in the December 2020 notice, beginning with the June 30, 2021, Call Report, Schedule RC–O, Memorandum item 5, ‘‘Applicable portion of the CECL transitional amount or modified CECL transitional amount that has been added to retained earnings for regulatory capital purposes as of the report date and is attributable to loans and leases held for investment,’’ would be completed only by large and highly complex institutions that have adopted ASU 2016–13 and reported having a CECL transition election in effect as of the quarter-end report date. The new deposit-related items would be effective starting with the September 30, 2021, Call Report (FFIEC 031 and FFIEC 041) and FFIEC 002, and with the December 31, 2021, Call Report (FFIEC 051). These items are Schedule RC–E, Memorandum items 1.h.(1) through 1.h.(4) and 1.i. Thereafter, these data items would be collected quarterly on the FFIEC 031 and FFIEC 041 Call Reports and semiannually on the FFIEC 051 Call Report. Beginning as of the same report date, all institutions filing VerDate Sep<11>2014 17:32 May 21, 2021 Jkt 253001 the FFIEC 031 Call Report with $100 billion or more in total assets would report deposit data in four additional items in Schedule RC–E, Memorandum items 1.h.(1)(a), 1.h.(2)(a), 1.h.(3)(a), and 1.h.(4)(a). The agencies note that the brokered deposits final rule became effective April 1, 2021, with a mandatory compliance date of January 1, 2022. Therefore, for the September 30, 2021, Call Report dates, institutions may rely on either existing staff advisory opinions and interpretations or the new provisions in the brokered deposits final rule when assessing whether a sweep deposit is brokered for Call Report purposes. The agencies will make available on the FFIEC website redline changes to the Glossary instructions for brokered deposits. IV. Request for Comment Public comment is requested on all aspects of this joint notice. Comment is specifically invited on: (a) Whether the proposed revisions to the collections of information that are the subject of this notice are necessary for the proper performance of the agencies’ functions, including whether the information has practical utility; (b) The accuracy of the agencies’ estimates of the burden of the PO 00000 Frm 00142 Fmt 4703 Sfmt 9990 information collections as they are proposed to be revised, including the validity of the methodology and assumptions used; (c) Ways to enhance the quality, utility, and clarity of the information to be collected; (d) Ways to minimize the burden of information collections on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Comments submitted in response to this joint notice will be shared among the agencies. Theodore J. Dowd, Deputy Chief Counsel, Office of the Comptroller of the Currency. Board of Governors of the Federal Reserve System. Michele Taylor Fennell, Deputy Associate Secretary of the Board. Federal Deposit Insurance Corporation. Dated at Washington, DC, on May 17, 2021. James P. Sheesley, Assistant Executive Secretary. [FR Doc. 2021–10853 Filed 5–21–21; 8:45 am] BILLING CODE 4810–33–P, 6210–01–P, 6714–01–P E:\FR\FM\24MYN1.SGM 24MYN1

Agencies

[Federal Register Volume 86, Number 98 (Monday, May 24, 2021)]
[Notices]
[Pages 27961-27966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10853]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


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

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

ACTION: Joint notice and request for comment.

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SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may 
not conduct or sponsor, and the respondent is not required to respond 
to, an information collection unless it displays a currently valid 
Office of Management and Budget (OMB) control number. On December 18, 
2020, and February 5, 2021, the agencies, under the auspices of the 
Federal Financial Institutions Examination Council (FFIEC), requested 
public comment for 60 days on proposals to revise and extend the 
Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031, 
FFIEC 041, and FFIEC 051), 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), all of which are currently approved collections of 
information. After considering the comments received on the notices, 
the agencies are proceeding with the proposed revisions to the 
reporting forms and instructions related to the FDIC's amendments to 
the deposit insurance assessment system, effective with the June 30, 
2021, report date, and the exclusion of sweep deposits and certain 
other deposits from reporting as brokered deposits, effective with the 
September 30, 2021, report date. The agencies hereby give notice of 
their plan to submit to OMB a request to approve the revision and 
extension of these information collections, and again invite comment on 
the renewal.

DATES: Comments must be submitted on or before June 23, 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 Deposit Insurance Assessment-Related and Deposit-Related 
Revisions,'' will be shared among the agencies.
    Written comments and recommendations for the proposed information 
collections should be sent within 30 days of publication of this notice 
to www.reginfo.gov/public/do/PRAMain. You may find these particular 
information collections by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
    Comments should also be sent to:
    OCC: You may submit comments, which should refer to ``Call Report 
Deposit Insurance Assessment-Related and Deposit-Related Revisions,'' 
by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Office of the Comptroller of 
the Currency, Attention: 1557-0081 and 1557-0239, 400 7th Street SW, 
Suite 3E-218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0081'' 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

[[Page 27962]]

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 
Deposit Insurance Assessment-Related and Deposit-Related Revisions,'' 
by any of the following methods:
     Agency Website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Email: [email protected]. Include ``Call 
Report Deposit Insurance Assessment-Related and Deposit-Related 
Revisions'' in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available on the Board's website at https://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information.
    FDIC: You may submit comments, which should refer to ``Call Report 
Deposit Insurance Assessment-Related and 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 Deposit 
Insurance Assessment-Related and 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.

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 and instructions 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 Deposit Insurance Corporation, 550 17th Street NW, Washington, 
DC 20429.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Report Summary

A. Call Report

    B. FFIEC 002 and 002S
II. Current Actions
    A. Background
    B. Comments Received on the Proposed Call Report Revisions
    C. Revised Memorandum Item for Non-Brokered Sweep Deposits
III. Timing
IV. Request for Comment

I. Report Summary

A. Call Report

    The agencies propose to extend for three years, with revision, the 
FFIEC 031, FFIEC 041, and FFIEC 051 Call Reports.
    Report Title: Consolidated Reports of Condition and Income.
    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: 1,090 national banks and federal 
savings associations.
    Estimated Average Burden per Response: 42.10 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 183,556 burden hours to file.
Board
    OMB Control No.: 7100-0036.
    Estimated Number of Respondents: 728 state member banks.
    Estimated Average Burden per Response: 45.62 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 132,845 burden hours to file.
FDIC
    OMB Control No.: 3064-0052.
    Estimated Number of Respondents: 3,209 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: 515,109 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 
86.49 (FFIEC 031), 55.53 (FFIEC 041), and 35.38 (FFIEC 051). The 
deposit insurance assessment-related change to the FFIEC 031 and FFIEC 
041

[[Page 27963]]

Call Report forms and instructions in this notice would not have a 
material impact on the existing burden estimates. The deposit insurance 
assessment-related change in this notice does not propose any changes 
to the FFIEC 051. The deposit-related revisions to the Call Report 
forms and instructions in this notice result in an increase in 
estimated average burden hours per quarter by type of report of 0.68 
(FFIEC 031), 0.33 (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 national and state-chartered 
institutions, such as conducting monetary policy, ensuring financial 
stability, and administering federal deposit insurance. Call Reports 
are the source of the most current statistical data available for 
identifying areas of focus for on-site and off-site examinations. Among 
other purposes, the agencies use Call Report data in evaluating 
institutions' corporate applications, including interstate merger and 
acquisition applications for which the agencies are required by law to 
determine whether the resulting institution would control more than 10 
percent of the total amount of deposits of insured depository 
institutions in the United States. Call Report data also are used to 
calculate institutions' deposit insurance assessments and national 
banks' and federal savings associations' semiannual assessment fees.

B. FFIEC 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: Extension and revision of currently approved 
collections.
    The proposed deposit-related revisions to the FFIEC 002 form and 
instructions in this notice are applicable to only a limited number of 
insured U.S. branches and agencies of foreign banking organizations and 
would not have a material impact on the existing burden estimates.
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 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

    On December 18, 2020, the agencies proposed revisions to the Call 
Reports \1\ (FFIEC 031 and FFIEC 041 only) to implement the FDIC's 
proposed amendments to the deposit insurance assessment system 
applicable to all large and highly complex IDIs published on December 
7, 2020.\2\ The amendments to the rule were subsequently finalized 
without change on February 16, 2021, and published in the Federal 
Register

[[Page 27964]]

on February 25, 2021.\3\ The amendments to the assessment system remove 
the double counting of the applicable portion of the CECL transitional 
amounts that is added to retained earnings for regulatory capital 
purposes and attributable to the allowance for credit losses on loans 
and leases held for investment in certain financial measures that are 
calculated using the sum of Tier 1 capital and reserves, and also from 
the loss severity measure. These measures are used to determine 
assessment rates for large and highly complex institutions. To 
implement these amendments, the agencies proposed one new, temporary 
memorandum item and corresponding changes to the FFIEC 031 and FFIEC 
041 versions of the Call Report forms and instructions. The agencies 
would remove the proposed new Call Report item when all large and 
highly complex institutions are no longer using a CECL transition. The 
comment period for the December 2020 notice ended on February 16, 2021.
---------------------------------------------------------------------------

    \1\ 85 FR 82580 (Dec. 18, 2020) (December 2020 notice).
    \2\ 85 FR 78794 (Dec. 7, 2020). For deposit insurance assessment 
purposes, a large bank is generally defined as an institution with 
$10 billion or more in total assets, a small bank is generally 
defined as an institution with less than $10 billion in total 
assets, and a highly complex bank is generally defined as an 
institution that has $50 billion or more in total assets and is 
controlled by a parent holding company that has $500 billion or more 
in total assets, or is a processing bank or trust company. See 12 
CFR 327.8(e), (f), and (g).
    \3\ See https://www.fdic.gov/news/financial-institution-letters/2021/fil21007.html and 86 FR 11391 (Feb. 25, 2021).
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    On February 5, 2021, the agencies proposed revisions to the 
reporting forms and instructions for the Call Reports and FFIEC 002 
that would allow (1) evaluation of the funding stability of sweep 
deposits over time to determine their appropriate treatment under 
liquidity regulations,\4\ and (2) assessment of risk factors associated 
with sweep deposits that may no longer be reported as brokered 
deposits.\5\ Accordingly, the agencies proposed adding five data items 
to Schedule RC-E, Deposit Liabilities, on all three versions of the 
Call Report (FFIEC 031, FFIEC 041, and FFIEC 051) applicable to all 
institutions and to Schedule O of the FFIEC 002 applicable to insured 
agencies and branches of foreign banking organizations. In addition, 
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. The agencies 
also proposed revising the Call Report instructions addressing brokered 
deposits to align them with the brokered deposits final rule. The 
changes to the Call Reports were proposed to take effect as of the June 
30, 2021, report date.
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    \4\ See 12 CFR part 50 (OCC), 12 CFR part 249 (Board) and 12 CFR 
part 329 (FDIC).
    \5\ See 12 CFR 337.6 and 86 FR 8480 (Feb. 5, 2021) (February 
2021 notice).
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    The comment period for the February 2021 notice ended on April 6, 
2021.

B. Comments Received on the Proposed Call Report Revisions

1. Deposit Insurance Assessment-Related Revision
    The agencies received one comment on the December 2020 notice to 
revise the Call Report to implement the FDIC's proposed amendments to 
the deposit insurance assessment system. The commenter discussed 
another potential double-counting in the computation of the leverage 
ratio.
    This comment is not specifically applicable to the deposit 
insurance assessment regulations or the related revision to the Call 
Report addressed in the December 2020 notice. The calculation of the 
leverage ratio in the Call Report is aligned with the calculation 
pursuant to the agencies' regulatory capital rules, which is outside 
the scope of the proposed changes.
    To improve the clarity of the reporting changes for deposit 
insurance assessments, the agencies plan to add examples to the 
instructions for Schedule RC-O, Memorandum item 5, to show what an 
institution that has elected the three-year or the five-year 2020 CECL 
transition provision would report in the new Memorandum item. These 
examples would be added at the end of the instructions for the Schedule 
RC-O, Other Data for Deposit Insurance Assessments.
    After considering the comments on the deposit insurance assessment-
related revision, the agencies are proceeding with the changes to the 
Call Reports as proposed with the added examples to show what an 
institution would report in the new Memorandum item in Schedule RC-O 
(FFIEC 031 and FFIEC 041 only).
2. Deposit-Related Revisions
    The agencies received one comment letter from three trade 
associations on the February 2021 proposal to revise the Call Report 
forms and instructions related to sweep deposits. The commenters 
recommended that institutions that report sweep deposits on the Board's 
Complex Institution Liquidity Monitoring Report (FR 2052a) should not 
be required to provide comparable data on the Call Report. 
Additionally, the commenters requested that the proposed Call Report 
memorandum items receive confidential treatment consistent with the 
treatment of comparable data items provided on the FR 2052a. The 
commenters further requested that the proposed Call Report memorandum 
items be delayed until the March 2022 report date. The commenters 
requested that the agencies confirm whether institutions are permitted 
to incorporate the new brokered deposits regime for purposes of 
reporting beginning with the June 30, 2021 Call Report, even if such 
institutions are still in the primary purpose exception application 
process. Finally, the commenters requested clarification with respect 
to the definition of ``not fully insured'' as it would apply to the 
proposed Call Report memorandum items.
    The FR 2052a is required to be filed on a consolidated basis by (1) 
certain top-tier bank holding companies and top-tier covered savings 
and loan holding companies that in each case have consolidated assets 
of $100 billion or more, and (2) certain foreign banking organizations 
with combined U.S. assets of $100 billion or more. The largest and most 
complex FR 2052a filers additionally submit data in respect to a 
limited number of subsidiaries, including large depository institution 
subsidiaries, and U.S. branches. The FR 2052a report is collected on a 
daily or monthly basis, depending on the size of the reporting 
organization.\6\ In contrast, the proposed Call Report data collection 
would reflect deposit data from all depository institutions regardless 
of size. The Call Report data also would be collected on a quarterly or 
semiannual basis. Due to the differences in scope and frequency of the 
reporting, the agencies do not believe that there is material 
duplication between the data requested.
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    \6\ In general, banking organizations subject to the full 
liquidity coverage ratio requirements of the agencies' Liquidity 
Coverage Ratio (LCR) rule, including all Category I and II banking 
organizations and certain Category III banking organizations (as 
such categories are defined in the rule), must submit the FR 2052a 
data on a daily basis while other banking organizations with total 
consolidated assets greater than $100 billion, including certain 
Category III and all Category IV banking organizations, must submit 
FR 2052a data on a monthly basis.
---------------------------------------------------------------------------

    Regarding the comment on confidential treatment, the Board notes 
that the information collected in the FR 2052a is collected as part of 
the agencies' supervisory framework and is provided confidential 
treatment for several reasons. The FR 2052a collection is reported on a 
frequent basis and includes a wide range of financial exposures 
providing detailed information on the liquidity profile of reporting 
firms (e.g., financing of securities positions and prime brokerage 
activities). Additionally, FR 2052a data is used as a supervisory tool 
to monitor individual organizations' overall liquidity profile, 
including during periods of stress, and may reflect risks and exposures 
between a respondent's

[[Page 27965]]

material legal entities. As a result, public availability of an 
individual banking organization's detailed and frequent FR 2052a data 
could result in disclosure of proprietary business information.
    By comparison, the proposed Call Report data items would be 
reported on a less frequent basis (quarterly or semiannually) by all 
individual depository institutions and do not include the same 
extensive scope of items reported under the FR 2052a collection. The 
agencies therefore do not believe public disclosure of the proposed 
Call Report data items would result in disclosure of proprietary 
business information which would harm a bank's competitive position. 
For example, because the proposed Call Report data items would be 
reported on a quarterly or semiannual basis and constitute limited 
information about a bank's liquidity risk or structural funding, it 
would not be possible for the public to determine an individual bank's 
Liquidity Coverage Ratio (LCR) or NSFR at any point within a 
quarter.\7\ Therefore, the agencies are not proposing to adopt 
confidential treatment for the proposed Call Report memorandum items.
---------------------------------------------------------------------------

    \7\ Holding companies subject to the agencies' LCR and NSFR 
rules must publicly disclose their consolidated LCR and NSFR on a 
quarterly basis.
---------------------------------------------------------------------------

    With regard to the implementation date of the revisions to the Call 
Reports and FFIEC 002, the agencies acknowledge that institutions may 
need additional time to make system changes to capture the relevant 
data. Accordingly, in response to comments, the agencies are proposing 
to delay the implementation date for the new memorandum items in the 
Call Report and FFIEC 002 forms and instructions until the September 
30, 2021, reporting date rather than for June 30, 2021, as originally 
proposed. As the collection in the FFIEC 051 occurs semiannually, FFIEC 
051 filers will report the new data items for the first time for the 
December 31, 2021, reporting date. This delay should provide 
institutions with sufficient additional time to put in place systems to 
begin reporting on the proposed memorandum items.
    The agencies will provide clarifications in the Call Report 
Glossary and Schedule RC-E, Deposit Liabilities instructions in 
response to comments related to reporting deposits as brokered in 
instances where a primary purpose application is pending or where an 
institution wishes to rely upon a previous staff advisory opinion or 
interpretation through December 31, 2021.
    With respect to pending applications for a primary purpose 
exception, an IDI that receives deposits from a third party that is a 
``deposit broker'' where an application for a primary purpose exception 
is pending, would report such deposits as brokered deposits if and 
until the FDIC approves such application. This is because the deposits 
being placed by or through a third party that is a deposit broker are 
brokered deposits unless the third party meets an exception to the 
definition.
    In response to the commenters' request, the agencies are clarifying 
the definition of ``not fully insured'' as it would apply to the 
deposit-related Call Report revisions. As described in the agencies' 
February 2021 notice, the proposal aligns with the final NSFR rule and 
revised Call Report Glossary definition of ``Sweep Deposits.'' Under 
the agencies' LCR and NSFR rules, a sweep deposit is considered ``fully 
insured'' if the entire amount of the sweep deposit is covered by 
deposit insurance provided by the FDIC under the Federal Deposit 
Insurance Act.\8\ A sweep deposit is ``not fully insured'' if less than 
the entire balance of the sweep deposit is covered by FDIC insurance.
---------------------------------------------------------------------------

    \8\ 12 U.S.C. 1811 et seq.
---------------------------------------------------------------------------

    The brokered deposits final rule included clarifications to the 
definition of ``deposit broker'' in Section 29(g) of the Federal 
Deposit Insurance Act and Section 337.6(a)(5) of the FDIC's 
regulations. The meaning of the term ``brokered deposit'' depends on 
the meaning of the term ``deposit broker.'' The term ``Brokered 
Deposits'' is defined in the Call Report Glossary, and the term 
``deposit broker'' is also addressed in instructions to Schedule RC-E, 
Deposit Liabilities. Consistent with the agencies' proposal to revise 
the Call Report instructions in the February 2021 notice, the agencies 
plan to update the Glossary and Schedule RC-E instructions to align 
with the clarifications to the definition of ``deposit broker'' in the 
brokered deposits final rule.
    After considering the comments, the agencies are clarifying the 
proposed instructions as described above and proceeding with the 
clarifications in the Call Report Glossary and Schedule RC-E 
instructions related to the definition of ``deposit broker.''
    The agencies are also making several technical corrections to 
proposed revisions in the February 2021 notice. In that notice, the 
agencies proposed to revise the Call Report instructions to add the LCR 
rule's definition \9\ of ``retail customer or counterparty,'' but 
inadvertently excluded references to living or testamentary trusts as 
part of that definition. The agencies will correct the Call Report 
instructions to include the complete definition of retail customer or 
counterparty from the agencies' LCR rule.
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    \9\ 79 FR 61439, 61527 (Oct. 10, 2014).
---------------------------------------------------------------------------

    In the February 2021 notice, the agencies stated that the Call 
Report instructions would add the LCR rule's definition of ``wholesale 
customer or counterparty.'' Because there are no proposed line items 
that require the definition of wholesale customer or counterparty, the 
agencies do not plan to make this change in the Call Report 
instructions.

C. Revised Memorandum Item for Non-Brokered Sweep Deposits

    As part of the February 2021 notice, the agencies proposed 
including the following data item that would be collected quarterly on 
the FFIEC 031 and FFIEC 041 Call Reports and semiannually on the FFIEC 
051 Call Report:
    [cir] 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.
    As provided in the February 2021 notice, the agencies intend to 
collect this data to monitor sweep deposits that are not brokered due 
to the primary purpose exception to determine the supervisory and 
deposit insurance assessment implications of these deposits, if any.
    However, the agencies note that certain sweep deposits placed by 
third parties with IDIs may not be classified as brokered when the 
third party has an exclusive deposit placement arrangement with only 
one IDI.\10\ For example, a broker dealer that is sweeping excess 
customer balances to only one IDI will not meet the deposit broker 
definition and therefore would not need to rely upon a primary purpose 
exception. Only reflecting exclusions related to the primary purpose 
exception could significantly limit the agencies' ability to monitor 
non-brokered sweep deposits. Therefore, to ensure a more complete 
collection of sweep deposits that are excluded from being reported as 
brokered, the agencies are proposing the following memo item in place 
of the proposed item above from the February 2021 notice:
---------------------------------------------------------------------------

    \10\ 12 CFR 337.6(a)(5).
---------------------------------------------------------------------------

    [cir] Memorandum item 1.i for total sweep deposits that are not 
brokered deposits.
    Updates to the Glossary and instructions will provide 
clarifications

[[Page 27966]]

for determining whether certain third parties that place sweep deposits 
at IDIs are deposit brokers and the exceptions to the definition of 
deposit broker.

IV. Timing

    As stated in the December 2020 notice, beginning with the June 30, 
2021, Call Report, Schedule RC-O, Memorandum item 5, ``Applicable 
portion of the CECL transitional amount or modified CECL transitional 
amount that has been added to retained earnings for regulatory capital 
purposes as of the report date and is attributable to loans and leases 
held for investment,'' would be completed only by large and highly 
complex institutions that have adopted ASU 2016-13 and reported having 
a CECL transition election in effect as of the quarter-end report date.
    The new deposit-related items would be effective starting with the 
September 30, 2021, Call Report (FFIEC 031 and FFIEC 041) and FFIEC 
002, and with the December 31, 2021, Call Report (FFIEC 051). These 
items are Schedule RC-E, Memorandum items 1.h.(1) through 1.h.(4) and 
1.i. Thereafter, these data items would be collected quarterly on the 
FFIEC 031 and FFIEC 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 report deposit data in four additional items in Schedule 
RC-E, Memorandum items 1.h.(1)(a), 1.h.(2)(a), 1.h.(3)(a), and 
1.h.(4)(a).
    The agencies note that the brokered deposits final rule became 
effective April 1, 2021, with a mandatory compliance date of January 1, 
2022. Therefore, for the September 30, 2021, Call Report dates, 
institutions may rely on either existing staff advisory opinions and 
interpretations or the new provisions in the brokered deposits final 
rule when assessing whether a sweep deposit is brokered for Call Report 
purposes. The agencies will make available on the FFIEC website redline 
changes to the Glossary instructions for brokered deposits.

IV. Request for Comment

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

Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
    Board of Governors of the Federal Reserve System.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on May 17, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-10853 Filed 5-21-21; 8:45 am]
BILLING CODE 4810-33-P, 6210-01-P, 6714-01-P