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[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]

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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.

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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)

[[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: 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 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
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