Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices 41973 

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 

AGENCIES: Office of the Comptroller of 

the Currency (OCC), Treasury; Board of 

Governors of the Federal Reserve 

System (Board); and Federal Deposit 

Insurance Corporation (FDIC). 

ACTION: Joint notice and request for 

comment. 

SUMMARY: In accordance with the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

chapter 35), 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. 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 extend, with 

revision, the Consolidated Reports of 

Condition and Income (Call Report), 

which are currently approved 

collections of information. At the end of 

the comment period, the comments and 

recommendations received will be 

analyzed to determine the extent to 

which the FFIEC and the agencies 

should modify the proposed revisions 

prior to giving final approval. The 

agencies will then submit the revisions 

to OMB for review and approval. 

DATES: Comments must be submitted on 

or before October 19, 2009. 

ADDRESSES: Interested parties are 

invited to submit written comments to 

any or all of the agencies. All comments, 

which should refer to the OMB control 

number(s), will be shared among the 

agencies. 

OCC: You should direct all written 

comments to: Communications 

Division, Office of the Comptroller of 

the Currency, Public Information Room, 

Mailstop 2–3, Attention: 1557–0081, 

250 E Street, SW., Washington, DC 

20219. In addition, comments may be 

sent by fax to (202) 874–5274, or by 

electronic mail to 

regs.comments@occ.treas.gov. You may 

personally inspect and photocopy 

comments at the OCC, 250 E Street, 

SW., Washington, DC 20219. For 

security reasons, the OCC requires that 

visitors make an appointment to inspect 

comments. You may do so by calling 

(202) 874–4700. Upon arrival, visitors 

will be required to present valid 

government-issued photo identification 

and to submit to security screening in 

order to inspect and photocopy 

comments. 

Board: You may submit comments, 

which should refer to ‘‘Consolidated 

Reports of Condition and Income, 7100– 

0036,’’ by any of the following methods: 

• Agency Web site: http:// 

www.federalreserve.gov. Follow the 

instructions for submitting comments 

on the http://www.federalreserve.gov/ 

generalinfo/foia/ProposedRegs.cfm. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: 

regs.comments@federalreserve.gov. 

Include the OMB control number in the 

subject line of the message. 

• Fax: 202–452–3819 or 202–452– 

3102. 

• Mail: Jennifer J. Johnson, Secretary, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue, NW., Washington, 

DC 20551. 

All public comments are available from 

the Board’s Web site at http:// 

www.federalreserve.gov/generalinfo/ 

foia/ProposedRegs.cfm as submitted, 

unless modified for technical reasons. 

Accordingly, your comments will not be 

edited to remove any identifying or 

contact information. Public comments 

may also be viewed electronically or in 

paper in Room MP–500 of the Board’s 

Martin Building (20th and C Streets, 

NW.) between 9 a.m. and 5 p.m. on 

weekdays. 

FDIC: You may submit comments, 

which should refer to ‘‘Consolidated 

Reports of Condition and Income, 3064– 

0052,’’ by any of the following methods: 

• Agency Web site: http:// 

www.fdic.gov/regulations/laws/federal/ 

propose.html. Follow the instructions 

for submitting comments on the FDIC 

Web site. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: comments@FDIC.gov. 

Include ‘‘Consolidated Reports of 

Condition and Income, 3064–0052’’ in 

the subject line of the message. 

• Mail: Herbert J. Messite (202–898– 

6834), Counsel, Attn: Comments, Room 

F–1052, 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 a.m. and 5 p.m. 

Public Inspection: All comments 

received will be posted without change 

to http://www.fdic.gov/regulations/laws/ 

federal/propose.html including any 

personal information provided. 

Comments may be inspected at the FDIC 

Public Information Center, Room E– 

1002, 3501 Fairfax Drive, Arlington, VA 

22226, between 9 a.m. and 5 p.m. on 

business days. 

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, or by fax to 

(202) 395–6974. 

FOR FURTHER INFORMATION CONTACT: For 

further information about the revisions 

discussed in this notice, please contact 

any of the agency clearance officers 

whose names appear below. In addition, 

copies of the Call Report forms can be 

obtained at the FFIEC’s Web site 

(http://www.ffiec.gov/ 

ffiec_report_forms.htm). 

OCC: Mary Gottlieb, OCC Clearance 

Officer, (202) 874–5090, Legislative and 

Regulatory Activities Division, Office of 

the Comptroller of the Currency, 250 E 

Street, SW., Washington, DC 20219. 

Board: Michelle Shore, Federal 

Reserve Board Clearance Officer, (202) 

452–3829, Division of Research and 

Statistics, 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: Herbert J. Messite, Counsel, 

(202) 898–6834, Legal Division, Federal 

Deposit Insurance Corporation, 550 17th 

Street, NW., Washington, DC 20429. 

SUPPLEMENTARY INFORMATION: The 

agencies are proposing to revise and 

extend for three years the Call Report, 

which is currently an approved 

collection of information for each 

agency. 

Report Title: Consolidated Reports of 

Condition and Income (Call Report). 

Form Number: Call Report: FFIEC 031 

(for banks with domestic and foreign 

offices) and FFIEC 041 (for banks with 

domestic offices only). 

Frequency of Response: Quarterly. 

Affected Public: Business or other forprofit. 

OCC 

OMB Number: 1557–0081. 

Estimated Number of Respondents: 

1,569 national banks. 


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1Under the FASB Accounting Standards 

Codification TM, see Topic 320, Investments—Debt 

and Equity Securities. 

Estimated Time per Response: 49.33 

burden hours. 

Estimated Total Annual Burden: 

309,595 burden hours. 

Board 

OMB Number: 7100–0036. 

Estimated Number of Respondents: 

861 state member banks. 

Estimated Time per Response: 55.08 

burden hours. 

Estimated Total Annual Burden: 

189,696 burden hours. 

FDIC 

OMB Number: 3064–0052. 

Estimated Number of Respondents: 

5,032 insured state nonmember banks. 

Estimated Time per Response: 39.15 

burden hours. 

Estimated Total Annual Burden: 

788,011 burden hours. 

The estimated time per response for 

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). The 

average reporting burden for the Call 

Report is estimated to range from 16 to 

655 hours per quarter, depending on an 

individual institution’s circumstances. 

General Description of Reports 

These information collections are 

mandatory: 12 U.S.C. 161 (for national 

banks), 12 U.S.C. 324 (for state member 

banks), and 12 U.S.C. 1817 (for insured 

state nonmember commercial and 

savings banks). At present, except for 

selected data items, these information 

collections are not given confidential 

treatment. 

Abstract 

Institutions 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 

provide the most current statistical data 

available for evaluating institutions’ 

corporate applications, for identifying 

areas of focus for both on-site and offsite examinations, and for monetary and 

other public policy purposes. The 

agencies use Call Report data in 

evaluating interstate merger and 

acquisition applications to determine, as 

required by law, whether the resulting 

institution would control more than ten 

percent of the total amount of deposits 

of insured depository institutions in the 

United States. Call Report data are also 

used to calculate institutions’ deposit 

insurance and Financing Corporation 

assessments and national banks’ 

semiannual assessment fees. 

Current Actions 

I. Overview 

The agencies are proposing to 

implement certain changes to the Call 

Report requirements in 2010 that are 

intended to provide data needed for 

reasons of safety and soundness or other 

public purposes. These proposed 

revisions respond, for example, to a 

change in accounting standards, a 

temporary increase in the deposit 

insurance limit, and credit availability 

concerns. 

The proposed Call Report changes 

that are the subject of this proposal 

would take effect as of March 31, 2010, 

unless otherwise indicated. These 

revisions, which are discussed in detail 

in Sections II.A. through J. of this 

notice, include: 

• New items identifying total otherthan-temporary impairment losses on 

debt securities, the portion of the total 

recognized in other comprehensive 

income, and the net losses recognized in 

earnings, consistent with the 

presentation requirements of a recent 

accounting standard; 

• Clarification of the instructions for 

reporting unused commitments; 

• Breakdowns of the existing items 

for unused credit card lines and other 

unused commitments, with the former 

breakdown required only for certain 

institutions, and a related breakdown of 

the existing item for other loans; 

• New items pertaining to reverse 

mortgages that would be collected 

annually as of December 31; 

• A breakdown of the existing item 

for time deposits of $100,000 or more 

(in domestic offices); 

• Revisions of existing items for 

brokered deposits; 

• New items for the interest expense 

and quarterly averages for fully insured 

brokered time deposits and other 

brokered time deposits; 

• A change in the reporting frequency 

for small business and small farm 

lending data from annually to quarterly; 

• A change in the reporting frequency 

for the number of certain deposit 

accounts from annually to quarterly; 

and 

• The elimination of the item for 

internal allocations of income and 

expense from the schedule for income 

from foreign offices. 

The agencies seek to establish 

reporting thresholds for the collection of 

Call Report information where 

practicable to limit the reporting burden 

imposed on banking institutions. In 

establishing such thresholds, the 

agencies weigh the characteristics of the 

institutions involved in the activity that 

would be subject to the reporting 

requirements, the number of institutions 

affected by the reporting requirements, 

the type of information being collected, 

how that information will be used by 

the agencies, and banks’ costs associated 

with gathering and reporting the 

requested information. The agencies 

solicit comments from banking 

institutions related to the proposals 

described in this notice. Are there 

appropriate reporting thresholds for 

specific proposed changes that will 

enable the agencies to collect 

meaningful information without 

creating undue burden for institutions? 

Please provide specific feedback 

regarding the amount of burden created 

by the proposed amendments as well as 

suggestions for thresholds that would 

reduce this burden without 

compromising the usefulness of the 

data. 

For the March 31 and December 31, 

2010 report dates, banks may provide 

reasonable estimates for any new or 

revised Call Report item initially 

required to be reported as of that date 

for which the requested information is 

not readily available. The specific 

wording of the captions for the new or 

revised Call Report data items discussed 

in this proposal and the numbering of 

these data items should be regarded as 

preliminary. 

Type of Review: Revision and 

extension of currently approved 

collections. 

II. Discussion of Proposed Call Report 

Revisions 

A. Other-Than-Temporary Impairment 

Losses on Debt Securities 

On April 9, 2009, the Financial 

Accounting Standards Board (FASB) 

issued FASB Staff Position (FSP) No. 

115–2 and 124–2, Recognition and 

Presentation of Other-Than-Temporary 

Impairments (FSP FAS 115–2).1 This 

FSP amended the other-than-temporary 

impairment guidance in other 

accounting standards that applies to 

investments in debt securities. Under 

FSP FAS 115–2, if a bank intends to sell 

a debt security or it is more likely than 

not that it will be required to sell the 

debt security before recovery of its 

amortized cost basis, an other-thantemporary impairment has occurred and 

the entire difference between the 

security’s amortized cost basis and its 

fair value at the balance sheet date must 

be recognized in earnings. FSP FAS 


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2 73 FR 54811, September 23, 2008. 

115–2 also provides that if the present 

value of cash flows expected to be 

collected on a debt security is less than 

its amortized cost basis, a credit loss 

exists. In this situation, if a bank does 

not intend to sell the security and it is 

not more likely than not that the bank 

will be required to sell the debt security 

before recovery of its amortized cost 

basis less any current-period credit loss, 

an other-than-temporary impairment 

has occurred. The amount of the total 

other-than-temporary impairment 

related to the credit loss must be 

recognized in earnings, but the amount 

of the total impairment related to other 

factors must be recognized in other 

comprehensive income, net of 

applicable taxes. 

For other-than-temporary impairment 

losses on held-to-maturity and 

available-for-sale debt securities, banks 

report the amount of the other-thantemporary impairment losses that must 

be recognized in earnings in items 6.a 

and 6.b of the Call Report income 

statement (Schedule RI), respectively. 

Other-than-temporary impairment 

losses that are to be recognized in other 

comprehensive income, net of 

applicable taxes, are reported in 

Schedule RI–A, Changes in Bank Equity 

Capital, item 10, ‘‘Other comprehensive 

income.’’ However, because items 6.a 

and 6.b of Schedule RI also include 

other amounts such as gains (losses) on 

sales of held-to-maturity and availablefor-sale securities, the agencies 

currently are not able to determine the 

effect on the net income of banks, 

individually and in the aggregate, of 

other-than-temporary impairment losses 

that must be recognized in earnings. 

Similarly, because item 10 of Schedule 

RI–A includes all of the other 

components of a bank’s other 

comprehensive income, the agencies 

cannot identify the portion of other 

comprehensive income attributable to 

other-than-temporary impairment losses 

for banks individually and in the 

aggregate. 

According to FSP FAS 115–2, in a 

period in which a bank determines that 

a debt security’s decline in fair value 

below its amortized cost basis is other 

than temporary, the bank must present 

the total other-than-temporary 

impairment loss in the income 

statement with an offset for the amount 

of the total loss that is recognized in 

other comprehensive income. This new 

presentation provides additional 

information about the amounts that a 

bank does not expect to collect related 

to its investments in debt securities held 

for purposes other than trading. 

Therefore, to enhance the agencies’ 

ability to evaluate the factors affecting 

bank earnings, the agencies propose to 

add three Memorandum items to the 

Call Report income statement that 

would mirror the presentation 

requirements of FSP FAS 115–2. In 

these new Memorandum items, banks 

would report total other-than-temporary 

impairment losses on debt securities for 

the calendar year-to-date reporting 

period, the portion of these losses 

recognized in other comprehensive 

income, and the net losses recognized in 

earnings 

B. Clarification of the Instructions for 

Reporting Unused Commitments 

Banks report unused commitments in 

item 1 of Schedule RC–L, Derivatives 

and Off-Balance Sheet Items. The 

instructions for this item identify 

various arrangements that should be 

reported as unused commitments, 

including but not limited to 

commitments for which the bank has 

charged a commitment fee or other 

consideration, commitments that are 

legally binding, loan proceeds that the 

bank is obligated to advance, 

commitments to issue a commitment, 

and revolving underwriting facilities. 

However, the agencies have found that 

some banks have not reported 

commitments that they have entered 

into until they have signed the loan 

agreement for the financing that they 

have committed to provide. Although 

the agencies consider these 

arrangements to be commitments to 

issue a commitment and, therefore, 

within the scope of the existing 

instructions for reporting commitments 

in Schedule RC–L, they believe that 

these instructions may not be 

sufficiently clear. Therefore, the 

agencies originally proposed to revise 

the instructions for Schedule RC–L, 

item 1, ‘‘Unused commitments,’’ as one 

of the proposed Call Report changes for 

implementation as of March 31, 2009.2

More specifically, with respect to 

commitments to issue a commitment at 

some point in the future, the agencies 

proposed to add language to the 

instructions for this item explicitly 

stating that such commitments include 

those that have been entered into even 

though the related loan agreement has 

not yet been signed. 

In response to the agencies’ request 

for comment on Call Report revisions 

for 2009, three commenters specifically 

addressed the proposed instructional 

clarification pertaining to unused 

commitments. One commenter agreed 

that clarification is needed, but 

recommended that commitments to 

issue a commitment in the future, 

including those entered into even 

though the related loan agreement has 

not yet been signed, should be removed 

from the list of types of arrangements 

that the instructions would direct banks 

to report as unused commitments. A 

second commenter expressed concern 

about reporting ‘‘commitments that 

contain a relatively high level of 

uncertainty until a loan agreement has 

been signed or the loan has been funded 

with a first advance’’ and the reliability 

of data on such commitments. The third 

commenter stated that because some 

banks do not have systems for tracking 

such arrangements, the instructions 

should in effect permit banks to exclude 

commitment letters with an expiration 

date of 90 days or less. Finally, the first 

commenter also recommended that the 

instructions for reporting unused 

commitments should state that amounts 

conveyed or participated to others that 

the conveying or participating bank is 

not obligated to fund should not be 

reported as unused commitments by the 

conveying or participating bank. 

After evaluating these comments, the 

agencies have refined their approach to 

identifying commitments to issue a 

commitment in a manner that is 

intended to address the commenters’ 

concerns by focusing on a point in the 

commitment process when the agencies 

believe that banks’ systems should be 

tracking their commitments. Thus, the 

instructions would state that 

commitments to issue a commitment at 

some point in the future are those where 

the bank has extended terms and the 

borrower has accepted the offered terms, 

even though the related loan agreement 

has not yet been signed. In addition, the 

agencies agree with the commenter’s 

recommendation concerning 

commitments that have been conveyed 

or participated to others and are 

proposing to modify the instructions 

accordingly. 

The proposed revised instructions for 

Schedule RC–L, item 1, would read as 

follows: 

Report in the appropriate subitem the 

unused portions of commitments. 

Unused commitments are to be reported 

gross, i.e., include in the appropriate 

subitem the unused amount of 

commitments acquired from and 

conveyed or participated to others. 

However, exclude commitments 

conveyed or participated to others that 

the bank is not legally obligated to fund 

even if the party to whom the 

commitment has been conveyed or 

participated fails to perform in 

accordance with the terms of the 

commitment. 

For purposes of this item, 

commitments include: 


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(1) Commitments to make or purchase 

extensions of credit in the form of loans 

or participations in loans, lease 

financing receivables, or similar 

transactions. 

(2) Commitments for which the bank 

has charged a commitment fee or other 

consideration. 

(3) Commitments that are legally 

binding. 

(4) Loan proceeds that the bank is 

obligated to advance, such as: 

(a) Loan draws; 

(b) Construction progress payments; 

and 

(c) Seasonal or living advances to 

farmers under prearranged lines of 

credit. 

(5) Rotating, revolving, and open-end 

credit arrangements, including, but not 

limited to, retail credit card lines and 

home equity lines of credit. 

(6) Commitments to issue a 

commitment at some point in the future, 

where the bank has extended terms and 

the borrower has accepted the offered 

terms, even though the related loan 

agreement has not yet been signed. 

(7) Overdraft protection on depositors’ 

accounts offered under a program where 

the bank advises account holders of the 

available amount of overdraft 

protection, for example, when accounts 

are opened or on depositors’ account 

statements or ATM receipts. 

(8) The bank’s own takedown in 

securities underwriting transactions. 

(9) Revolving underwriting facilities 

(RUFs), note issuance facilities (NIFs), 

and other similar arrangements, which 

are facilities under which a borrower 

can issue on a revolving basis short-term 

paper in its own name, but for which 

the underwriting banks have a legally 

binding commitment either to purchase 

any notes the borrower is unable to sell 

by the rollover date or to advance funds 

to the borrower. 

Exclude forward contracts and other 

commitments that meet the definition of 

a derivative and must be accounted for 

in accordance with FASB Statement No. 

133, which should be reported in 

Schedule RC–L, item 12. Include the 

amount (not the fair value) of the 

unused portions of loan commitments 

that do not meet the definition of a 

derivative that the bank has elected to 

report at fair value under a fair value 

option. Also include forward contracts 

that do not meet the definition of a 

derivative. The unused portions of 

commitments are to be reported in the 

appropriate subitem regardless of 

whether they contain ‘‘material adverse 

change’’ clauses or other provisions that 

are intended to relieve the issuer of its 

funding obligations under certain 

conditions and regardless of whether 

they are unconditionally cancelable at 

any time. 

In the case of commitments for 

syndicated loans, report only the bank’s 

proportional share of the commitment. 

For purposes of reporting the unused 

portions of revolving asset-based 

lending commitments, the commitment 

is defined as the amount a bank is 

obligated to fund—as of the report 

date—based on the contractually agreed 

upon terms. In the case of revolving 

asset-based lending, the unused 

portions of such commitments should 

be measured as the difference between 

(a) the lesser of the contractual 

borrowing base (i.e., eligible collateral 

times the advance rate) or the note 

commitment limit, and (b) the sum of 

outstanding loans and letters of credit 

under the commitment. The note 

commitment limit is the overall 

maximum loan amount beyond which 

the bank will not advance funds 

regardless of the amount of collateral 

posted. This definition of 

‘‘commitment’’ is applicable only to 

revolving asset-based lending, which is 

a specialized form of secured lending in 

which a borrower uses current assets 

(e.g., accounts receivable and inventory) 

as collateral for a loan. The loan is 

structured so that the amount of credit 

is limited by the value of the collateral. 

C. Additional Categories of Unused 

Commitments and Loans 

The extent to which banks are 

reducing the supply of credit during the 

current financial crisis has been of great 

interest to the agencies and to Congress. 

Also, bank lending plays a central role 

in any economic recovery and the 

agencies need data to better determine 

when credit conditions have eased. One 

way to measure the supply of credit is 

to analyze the change in total lending 

commitments by banks, considering 

both the amount of loans outstanding 

and the volume of unused credit lines. 

These data are also needed for safety 

and soundness purposes because draws 

on commitments during periods when 

banks face significant funding pressures, 

such as during the fall of 2008, can 

place significant and unexpected 

demands on the liquidity and capital 

positions of banks. Therefore, the 

agencies propose breaking out in further 

detail two categories of unused 

commitments on Schedule RC–L, 

Derivatives and Off-Balance Sheet 

Items. The agencies also propose to 

break out in further detail one new loan 

category on Schedule RC–C, part I, 

Loans and Leases. These new data items 

would improve the agencies’ ability to 

obtain timely and accurate readings on 

the supply of credit available to 

households and businesses. These data 

would also be useful in determining the 

effectiveness of the government’s 

economic stabilization programs. 

Unused commitments associated with 

credit card lines are reported in 

Schedule RC–L, item 1.b. This data item 

is not sufficiently meaningful for 

monitoring the supply of credit because 

it mixes consumer credit card lines with 

credit card lines for businesses and 

other entities. As a result of this 

aggregation, it is not possible to fully 

monitor credit available specifically to 

households. Furthermore, bank 

supervisors would benefit from the 

split, because the usage patterns, 

profitability, and evolution of credit 

quality through the business cycle are 

likely to differ for consumer credit cards 

and business credit cards. Therefore, the 

agencies propose to split Schedule RC– 

L, item 1.b, into unused consumer credit 

card lines and other unused credit card 

lines. This breakout would be reported 

by institutions with either $300 million 

or more in total assets or $300 million 

or more in unused credit card 

commitments. Draws from these credit 

lines that have not been sold are already 

reported on Schedule RC–C, part I. For 

example, banks must report draws on 

credit cards issued to nonfarm 

nonfinancial businesses as commercial 

and industrial (C&I) loans in Schedule 

RC–C, part I, item 4, and draws on 

personal credit cards as consumer loans 

in Schedule RC–C, part I, item 6.a. 

Schedule RC–L, item 1.e, aggregates 

all other unused commitments, and 

includes unused commitments to fund 

C&I loans (other than credit card lines 

to commercial and industrial 

enterprises, which are reported in item 

1.b, and commitments to fund 

commercial real estate, construction, 

and land development loans not secured 

by real estate, which are reported in 

item 1.c.(2)). Separating these C&I 

lending commitments from the other 

commitments included in other unused 

commitments would considerably 

improve the agencies’ ability to analyze 

business credit conditions. A very large 

percentage of banks responding to the 

Federal Reserve’s Senior Loan Officer 

Opinion Survey on Bank Lending 

Practices (FR 2018; OMB No. 7100– 

0058) reported having tightened lending 

policies for C&I loans and credit lines 

during 2008; however, C&I loans on 

banks’ balance sheets expanded through 

the end of October 2008, reportedly as 

a result of substantial draws on existing 

credit lines. In contrast, other unused 

commitments reported on the Call 

Report contracted, but without the 

proposed breakouts of such 

commitments, it was not possible to 


jlentini on DSKJ8SOYB1PROD with NOTICES
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know how total business borrowing 

capacity had changed. The FR 2018 data 

are qualitative rather than quantitative 

and are collected only from a sample of 

institutions up to six times per year. 

Having the additional unused 

commitment data reported separately on 

the Call Report, along with the proposed 

changes to Schedule RC–C described 

below, would have indicated more 

clearly whether there was a widespread 

restriction in new credit available to 

businesses. 

Therefore, the agencies propose to 

split Schedule RC–L, item 1.e, into three 

categories: Unused commitments to 

fund commercial and industrial loans 

(which would include only 

commitments not reported in Schedule 

RC–L, items 1.b and 1.c.(2), for loans 

that, when funded, would be reported in 

Schedule RC–C, item 4), unused 

commitments to fund loans to financial 

institutions (defined to include 

depository institutions and 

nondepository financial institutions, 

i.e., real estate investment trusts, 

mortgage companies, holding 

companies of other depository 

institutions, insurance companies, 

finance companies, mortgage finance 

companies, factors and other financial 

intermediaries, short-term business 

credit institutions, personal finance 

companies, investment banks, the 

bank’s own trust department, other 

domestic and foreign financial 

intermediaries, and Small Business 

Investment Companies), and all other 

unused commitments. With respect to 

Schedule RC–C, part I, the agencies also 

propose to revise item 9, ‘‘Other loans,’’ 

by breaking out a new category for loans 

to nondepository financial institutions 

(as defined above). Banks already report 

data on loans to depository institutions 

in Schedule RC–C, part I, item 2. 

Lending by nondepository financial 

institutions was a key characteristic of 

the recent credit cycle and many such 

institutions failed; however, little 

information existed on the exposure of 

the banking system to those firms as this 

information was obscured by the current 

structure of the Call Report’s loan 

schedule. The proposed addition of 

separate items for unused commitments 

to financial institutions and loans to 

nondepository financial institutions, 

together with the existing data on loans 

to depository institutions, will allow 

supervisors and other interested parties 

to more closely monitor the exposure of 

individual banks to financial 

institutions and to assess the impact 

that changes in the credit availability to 

this sector have on the economy. 

D. Reverse Mortgage Data 

Reverse mortgages are complex loan 

products that leverage equity in homes 

to provide lump sum cash payments or 

lines of credit to borrowers. These 

products are typically marketed to 

senior citizens who own homes. The 

agencies are currently unable to 

effectively identify and monitor 

institutions that offer these products 

due to a lack of reverse mortgage data. 

The reverse mortgage market 

currently consists of two basic types of 

products: Proprietary products designed 

and originated by financial institutions 

and a federally-insured product known 

as a Home Equity Conversion Mortgage 

(HECM). Some reverse mortgages 

provide for a lump sum payment to the 

borrower at closing, with no ability for 

the borrower to receive additional funds 

under the mortgage at a later date. Other 

reverse mortgages are structured like 

home equity lines of credit in that they 

provide the borrower with additional 

funds after closing, either as fixed 

monthly payments, under a line of 

credit, or both. There are also reverse 

mortgages that provide a combination of 

a lump sum payment to the borrower at 

closing and additional payments to the 

borrower after the closing of the loan. 

The volume of reverse mortgage 

activity is expected to dramatically 

increase in the coming years as the U.S. 

population ages. A number of consumer 

protection related risks and safety and 

soundness related risks are associated 

with these products and the agencies 

need to collect information from banks 

involved in the reverse mortgage 

activities to monitor and mitigate those 

risks. For example, proprietary reverse 

mortgages structured as lines of credit, 

which are not insured by the federal 

government, expose borrowers to the 

risk that the lender will be unwilling or 

unable to meet its obligation to make 

payments due to the borrower. 

Additionally, in those circumstances in 

which housing prices are declining, 

there is the risk that the reverse 

mortgage loan balance may exceed the 

value of the underlying collateral value 

of the home. 

As stated above, access to data 

regarding loan volumes, dollar amounts 

outstanding, and the institutions 

offering reverse mortgages or 

participating in reverse mortgage 

activity is severely limited. The U.S. 

Department of Housing and Urban 

Development provides a monthly report 

for reverse mortgages endorsed for 

federal insurance, by fiscal year, for 

those loans that are part of the federallysponsored HECM program. While this 

monthly report provides information 

such as average expected interest rates, 

average property values, average age of 

the borrower, and the number of active 

insured accounts, there is no aggregate 

monthly data nor is there institutionspecific information that identifies the 

institutions participating in the 

program. For proprietary reverse 

mortgage loans, there is no known data 

on the volume of reverse mortgages, 

dollar amounts outstanding, or the 

institutions offering these products. 

The agencies propose that new items 

be added to the Call Report to collect 

reverse mortgage data on an annual 

basis beginning on December 31, 2010. 

Collecting this information will provide 

the agencies the necessary information 

for policy development and the 

management of risk exposures posed by 

institutions’ involvement with reverse 

mortgages. First, a new Memorandum 

item would be added to Schedule RC– 

C, part I, Loans and Leases, for ‘‘Reverse 

mortgages outstanding that are held for 

investment.’’ In this Memorandum item, 

banks would separately report the 

amount of HECM reverse mortgages and 

the amount of proprietary reverse 

mortgages that are held for investment 

and included in Schedule RC–C, part I, 

item 1.c, Loans ‘‘Secured by 1–4 family 

residential properties.’’ Additionally, 

new items would be added to Schedule 

RC–L, Derivatives and Off-Balance 

Sheet Items, to collect the amounts of 

‘‘Unused commitments for HECM 

reverse mortgages outstanding that are 

held for investment’’ and ‘‘Unused 

commitments for proprietary reverse 

mortgages outstanding that are held for 

investment.’’ Because these reverse 

mortgages have been structured in 

whole or in part like home equity lines 

of credit, the unused commitments 

associated with these mortgages are also 

reportable in existing item 1.a, 

‘‘Revolving, open-end lines secured by 

1–4 family residential properties,’’ of 

Schedule RC–L. The proposed new 

unused commitment items would be 

subsets of item 1.a. 

In many instances, institutions do not 

underwrite and fund reverse mortgages, 

but refer borrowers to other reverse 

mortgage lenders. These institutions 

receive a fee for referring customers to 

the reverse mortgage lender and they 

may be involved in (although their 

involvement may not be limited to) the 

following activities: Marketing the 

reverse mortgage loan product, 

providing information on or answering 

questions about the reverse mortgage 

loan, selling products in conjunction 

with reverse mortgages, and/or 

accepting an application for a reverse 

mortgage from the potential borrower. 

This model enables consumers to deal 


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3The proposed linkage of the scope of the 

Memorandum items on fully insured brokered 

deposits in Schedule RC–E to the deposit insurance 

limits in effect on the report date is consistent with 

an existing linkage between the deposit insurance 

limits in effect on the report date and the 

Memorandum items in Schedule RC–O, Other Data 

for Deposit Insurance and FICO Assessments, on 

the amount and number of deposit accounts within 

the insurance limit and in excess of the insurance 

limit. 

first with their local institutions without 

the institutions having to build an 

entirely new lending function. It also 

provides an economy of scale for a 

specialized lender because they will not 

necessarily need a large physical branch 

network when they can partner with 

existing lenders. The banking agencies 

propose adding a new Memorandum 

item to Schedule RC–C, part I, to 

annually collect the estimated number 

of fee-paid referrals during the year from 

each bank making referrals beginning on 

December 31, 2010. Banks would report 

separately the estimated number of feepaid referrals for HECM reverse 

mortgages and proprietary reverse 

mortgages. 

The agencies request specific 

feedback from reporting institutions on 

their ability to provide fee-paid referral 

information for reverse mortgages. Do 

banks maintain the data necessary to 

provide an estimate of the number of fee 

paid referrals they have made during the 

year? Would it be less burdensome for 

banks to report an estimated number of 

fee-paid referrals for reverse mortgages 

that falls within specified ranges of 

numbers? Is there alternative 

information that the agencies could 

collect in order to better understand the 

extent of banks’ reverse mortgage 

referral activities? 

Finally, many banks that originate 

reverse mortgages routinely sell their 

funded mortgages in the secondary 

market. As a result, these loans will not 

remain on the originating banks’ balance 

sheets for long periods of time and, 

therefore, the proposed items for reverse 

mortgages outstanding that are held for 

investment will not capture the extent 

of banks’ reverse mortgage activity when 

it involves the origination and sale of 

these loans. Thus, the agencies propose 

to add Memorandum items to Schedule 

RC–C, part I, in which banks would 

report the principal amount of reverse 

mortgages originated for sale that have 

been sold during the year. HECM and 

proprietary reverse mortgages sold 

would be reported separately. These 

items are distinct and separate from the 

items for the estimated number of 

referrals because the referring bank is 

not funding the loan, but is merely 

taking an application or conducting 

another service in order to refer the 

borrower to another institution that 

ultimately funds the reverse mortgage. 

The information on loans sold during 

the year also would be collected 

annually beginning on December 31, 

2010. 

E. Time Deposits of $100,000 or More 

On October 3, 2008, the Emergency 

Economic Stabilization Act of 2008 

temporarily raised the standard 

maximum deposit insurance amount 

(SMDIA) from $100,000 to $250,000 per 

depositor. Under this legislation, the 

SMDIA was to return to $100,000 after 

December 31, 2009. However, on May 

20, 2009, the Helping Families Save 

Their Homes Act extended this 

temporary increase in the SMDIA to 

$250,000 per depositor through 

December 31, 2013, after which the 

SMDIA is scheduled to return to 

$100,000. 

At present, banks report a two-way 

breakdown of their time deposits (in 

domestic offices) in Schedule RC–E, 

Deposit Liabilities, distinguishing 

between time deposits of less than 

$100,000 and time deposits of $100,000 

or more. In response to the extension of 

the temporary increase in the limit on 

deposit insurance coverage, the agencies 

understand that time deposits with 

balances in excess of $100,000, but less 

than or equal to $250,000, have been 

growing and can be expected to increase 

further. However, given the existing 

Schedule RC–E reporting requirements, 

the agencies are unable to monitor 

growth in banks’ time deposits with 

balances within the temporarily 

increased limit on deposit insurance 

coverage. 

Therefore, the agencies are proposing 

to replace Schedule RC–E, 

Memorandum item 2.c, ‘‘Total time 

deposits of $100,000 or more,’’ with a 

revised Memorandum item 2.c, ‘‘Total 

time deposits of $100,000 through 

$250,000,’’ and a new Memorandum 

item 2.d, ‘‘Total time deposits of more 

than $250,000.’’ Existing Memorandum 

item 2.c.(1), ‘‘Individual Retirement 

Accounts (IRAs) and Keogh Plan 

accounts included in Memorandum 

item 2.c, ‘Total time deposits of 

$100,000 or more,’ above,’’ would be 

renumbered and recaptioned as 

Memorandum item 2.e, ‘‘Individual 

Retirement Accounts (IRAs) and Keogh 

Plan accounts of $100,000 or more 

included in Memorandum items 2.c and 

2.d above,’’ but the scope of this 

Memorandum item would not change. 

F. Revisions of Brokered Deposit Items 

As mentioned in Section II.E. above, 

the SMDIA has been increased 

temporarily from $100,000 to $250,000 

through year-end 2013. However, the 

data that banks currently report in the 

Call Report on fully insured brokered 

deposits in Schedule RC–E, 

Memorandum items 1.c.(1) and 1.c.(2), 

is based on the $100,000 insurance limit 

(except for brokered retirement deposit 

accounts for which the deposit 

insurance limit was already $250,000). 

Therefore, in response to the temporary 

increase in the SMDIA, the agencies are 

proposing to revise the reporting of fully 

insured brokered deposits in Schedule 

RC–E. Furthermore, given the linkage 

between the deposit insurance limits 

and the Memorandum items on fully 

insured brokered deposits in Schedule 

RC–E, the scope of these items needs to 

be changed whenever deposit insurance 

limits change. To ensure that the scope 

of these Memorandum items, including 

the dollar amounts cited in the captions 

for these items, changes automatically 

as a function of the deposit insurance 

limit in effect on the report date, 

Memorandum item 1.c, ‘‘Fully insured 

brokered deposits,’’ would be footnoted 

to state that the specific dollar amounts 

used as the basis for reporting fully 

insured brokered deposits in 

Memorandum items 1.c.(1) and 1.c.(2) 

reflect the deposit insurance limits in 

effect on the report date. The 

instructions for Memorandum item 1.c 

would be similarly clarified.3

In addition, consistent with the 

reporting of time deposits in other items 

of Schedule RC–E, brokered deposits 

would be reported based on their 

balances rather than the denominations 

in which they were issued. 

Accordingly, Memorandum items 

1.c.(1) and 1.c.(2) of Schedule RC–E and 

their instructions would be revised as 

follows: 

• Memorandum item 1.c.(1), 

‘‘Brokered deposits of less than 

$100,000’’: Report in this item brokered 

deposits with balances of less than 

$100,000. Also report in this item time 

deposits issued to deposit brokers in the 

form of large ($100,000 or more) 

certificates of deposit that have been 

participated out by the broker in shares 

with balances of less than $100,000. For 

brokered deposits that represent 

retirement deposit accounts (as defined 

in Schedule RC–O, Memorandum item 

1) eligible for $250,000 in deposit 

insurance coverage, report such 

brokered deposits in this item only if 

their balances are less than $100,000. 

• Memorandum item 1.c.(2), 

‘‘Brokered deposits of $100,000 through 

$250,000 and certain brokered 

retirement deposit accounts’’: Report in 

this item brokered deposits (including 

brokered retirement deposit accounts) 

with balances of $100,000 through 


jlentini on DSKJ8SOYB1PROD with NOTICES
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4The FDIC publishes a weekly schedule of 

national rates and national interest-rate caps by 

maturity, which can be accessed at http:// 

www.fdic.gov/regulations/resources/rates/. 

5http://www.financialstability.gov/ 

roadtostability/smallbusinesscommunity.html. 

6http://www.financialstability.gov/latest/ 

tg58-remarks.html. 

7 Ibid. 

$250,000. Also report in this item 

brokered deposits that represent 

retirement deposit accounts (as defined 

in Schedule RC–O, Memorandum item 

1) eligible for $250,000 in deposit 

insurance coverage that have been 

issued by the bank in denominations of 

more than $250,000 that have been 

participated out by the broker in shares 

of $100,000 through exactly $250,000. 

The proposed revisions to Schedule 

RC–E, Memorandum items 1.c.(1) and 

1.c.(2), that relate to the temporary 

increase in the SMDIA would remain in 

effect during this increase, after which 

the dollar amounts used as the basis for 

reporting fully insured brokered 

deposits in these items would revert to 

the amounts in effect prior to the 

temporary increase. 

The agencies are not proposing to 

revise the existing requirements for the 

reporting of maturity data on brokered 

deposits in Memorandum items 1.d.(1) 

and 1.d.(2) of Schedule RC–E. 

G. Interest Expense on and Quarterly 

Averages for Brokered Deposits 

Under Section 29 of the Federal 

Deposit Insurance Act (12 U.S.C. 1831f), 

an insured depository institution that is 

less than well capitalized generally may 

not pay a rate of interest that 

significantly exceeds the prevailing rate 

in the institution’s ‘‘normal market 

area’’ and/or the prevailing rate in the 

‘‘market area’’ from which the deposit is 

accepted. In the case of an adequately 

capitalized institution with a waiver to 

accept brokered deposits, the institution 

may not pay a rate of interest on 

brokered deposits accepted from outside 

the bank’s ‘‘normal market area’’ that 

significantly exceeds the ‘‘national rate’’ 

as defined by the FDIC. On May 29, 

2009, the FDIC’s Board of Directors 

adopted a final rule making certain 

revisions to the interest rate restrictions 

under Section 337.6 of the FDIC’s 

regulations. Under the final rule, the 

‘‘national rate’’ is a simple average of 

rates paid by U.S. depository 

institutions as calculated by the FDIC.4

When evaluating compliance with the 

interest rate restrictions in Section 337.6 

by an institution that is less than well 

capitalized, the FDIC generally will 

deem the national rate to be the 

prevailing rate in all market areas. The 

final rule is effective January 1, 2010. 

At present, the agencies are unable to 

evaluate the level and trend of the cost 

of brokered time deposits to institutions 

that have acquired such funds, nor can 

the agencies compare the cost of such 

deposits across institutions with 

brokered time deposits. Data on the cost 

of brokered deposits would also assist 

the agencies in evaluating the overall 

cost of institutions’ time deposits, for 

which data have long been collected in 

the Call Report. Furthermore, many of 

the banks that have failed since the 

beginning of 2008 have relied 

extensively on brokered deposits to 

support their asset growth. Therefore, to 

enhance the agencies’ ability to evaluate 

funding costs and the impact of 

brokered time deposits on these costs, 

the agencies are proposing to add two 

Memorandum items to both Schedule 

RC–K, Quarterly Averages, and 

Schedule RI, Income Statement. In these 

Memorandum items, banks would 

report the interest expense and quarterly 

averages for ‘‘fully insured brokered 

time deposits’’ and ‘‘other brokered time 

deposits.’’ The definition of ‘‘fully 

insured brokered time deposits’’ would 

be based on the definitions of ‘‘fully 

insured brokered deposits’’ and ‘‘time 

deposits’’ in Schedule RC–E, Deposit 

Liabilities. ‘‘Other brokered time 

deposits’’ would consist of all brokered 

time deposits that are not ‘‘fully insured 

brokered deposits.’’ 

H. Change in Reporting Frequency for 

Loans to Small Businesses and Small 

Farms 

Section 122 of the Federal Deposit 

Insurance Corporation Improvement Act 

requires the banking agencies to collect 

from insured institutions annually the 

information the agencies ‘‘may need to 

assess the availability of credit to small 

businesses and small farms.’’ To 

implement these requirements, the 

banking agencies added Schedule RC–C, 

Part II—Loans to Small Businesses and 

Small Farms to the Call Report effective 

June 30, 1993. This schedule requests 

information on the number and amount 

currently outstanding of ‘‘loans to small 

businesses’’ and ‘‘loans to small farms,’’ 

as defined in the Call Report 

instructions, which all banks must 

report annually as of June 30. 

With the United States now more than 

a year into a recession, the current 

administration ‘‘firmly believes that 

economic recovery will be driven in 

large part by America’s small 

businesses,’’ but ‘‘small business owners 

are finding it harder to get the credit 

necessary to stay in business.’’ 5 Because 

‘‘[c]redit is essential to economic 

recovery,’’ Treasury Secretary Geithner 

stated on March 16, 2009, that ‘‘we need 

our nation’s banks to go the extra mile 

in keeping credit lines in place on 

reasonable terms for viable 

businesses.’’ 6 Accordingly, Secretary 

Geithner asked the banking agencies ‘‘to 

call for quarterly, as opposed to annual 

reporting of small business loans, so 

that we can carefully monitor the degree 

that credit is flowing to our nation’s 

entrepreneurs and small business 

owners.’’ 7 In response to Secretary 

Geithner’s request and to improve the 

agencies’ own ability to assess the 

availability of credit to small businesses 

and small farms, the agencies propose to 

change the frequency with which banks 

must submit Call Report Schedule RC– 

C, Part II, from annually to quarterly 

beginning March 31, 2010. The agencies 

are not proposing to make any revisions 

to the information that banks are 

required to report on this schedule. 

I. Change in Reporting Frequency for the 

Number of Certain Deposit Accounts 

In Call Report Schedule RC–O—Other 

Data for Deposit Insurance and FICO 

Assessments, banks report the number 

of deposit accounts based on whether 

the amount of the account is within the 

deposit insurance limit or is in excess 

of this limit. Information is reported 

separately for retirement deposit 

accounts and all other deposit accounts. 

At present, for deposit accounts for 

which the amount of the account 

exceeds the deposit insurance limit, the 

number of accounts is reported 

quarterly (Schedule RC–O, 

Memorandum items 1.b.(2) and 1.d.(2)). 

However, for deposit accounts for which 

the amount of the account is within this 

limit, the number of accounts is 

reported annually as of June 30 

(Schedule RC–O, Memorandum items 

1.a.(2) and 1.c.(2)). 

Data on the number of deposit 

accounts are used to estimate average 

deposit account balances and changes 

therein as well as insured and 

uninsured deposits. These data also 

assist the FDIC in its planning efforts as 

it seeks to resolve potential failures of 

insured institutions. As a consequence, 

the difference in reporting frequency for 

deposit accounts with balances within 

and in excess of the deposit insurance 

limit hinders the effectiveness of these 

analyses. Therefore, the agencies are 

proposing to require all of the existing 

Call Report items on the number of 

deposit accounts to be reported 

quarterly beginning March 31, 2010. 

The agencies note that savings 

associations already report the number 

of all deposit accounts quarterly in the 


jlentini on DSKJ8SOYB1PROD with NOTICES
41980 Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices 

8Statement of Financial Accounting Standards 

No. 166, Accounting for Transfers of Financial 

Assets, amends Statement No. 140, Accounting for 

Transfers and Servicing of Financial Assets and 

Extinguishments of Liabilities. Statement of 

Financial Accounting Standards No. 167, 

Amendments to FASB Interpretation No. 46(R), 

amends FASB Interpretation No. 46(R), 

Consolidation of Variable Interest Entities. In 

general, under the FASB Accounting Standards 

CodificationTM, see Topics 860, Transfers and 

Servicing, and 810, Consolidation. 

9FASB News Release, June 12, 2009, http://

www.fasb.org/cs/ContentServer?c=FASBContent_C

&pagename=FASB/FASBContent_C/NewsPage&cid

=1176156240834&pf=true. 10 73 FR 54807. 

Thrift Financial Report (OMB No. 1550– 

0023). Thus, this proposed change in 

reporting frequency in the Call Report 

would conform the reporting 

requirements in this area for banks and 

savings associations. 

J. Internal Income and Expense 

Allocations Applicable to Foreign 

Offices 

In Schedule RI–D, Income from 

Foreign Offices, banks are to report in 

item 11 their best estimate of all 

appropriate internal allocations of 

income and expense applicable to 

foreign offices, whether or not ‘‘booked’’ 

that way in the bank’s formal 

accounting records. This estimate 

includes, for example, allocations of 

income and expense in domestic offices 

applicable to foreign offices and 

allocations of income and expense in 

foreign offices applicable to domestic 

offices. A review of Schedule RI–D data 

indicates that few banks report any 

amount for these internal allocations 

and the usefulness of the amounts that 

are reported appears to be limited. 

Accordingly, the agencies propose to 

eliminate item 11, ‘‘Internal allocations 

of income and expense applicable to 

foreign offices,’’ from Schedule RI–D. 

III. Other Matters 

A. Effect of New Accounting Standards 

on Schedule RC–S, Servicing, 

Securitization, and Asset Sale Activities 

On June 12, 2009, the Financial 

Accounting Standards Board (FASB) 

issued Statements of Financial 

Accounting Standards Nos. 166 and 

167, which revise the existing standards 

governing the accounting for financial 

asset transfers and the consolidation of 

variable interest entities.8 Statement No. 

166 eliminates the concept of a 

‘‘qualifying special-purpose entity,’’ 

changes the requirements for 

derecognizing financial assets, and 

requires additional disclosures. 

Statement No. 167 changes how a 

company determines when an entity 

that is insufficiently capitalized or is not 

controlled through voting (or similar 

rights) should be consolidated. This 

consolidation determination is based 

on, among other things, an entity’s 

purpose and design and a company’s 

ability to direct the activities of the 

entity that most significantly impact the 

entity’s economic performance.9 In 

general, the revised standards take effect 

January 1, 2010. The standards are 

expected to cause a substantial volume 

of assets in bank-sponsored entities 

associated with securitization and 

structured finance activities to be 

brought onto bank balance sheets. 

The agencies currently collect data on 

banks’ securitization and structured 

finance activities in Schedule RC–S, 

Servicing, Securitization, and Asset Sale 

Activities. The agencies will continue to 

collect Schedule RC–S after the effective 

date of Statements Nos. 166 and 167 and 

banks should continue to complete this 

schedule in accordance with its existing 

instructions, taking into account the 

changes in accounting brought about by 

these two FASB statements. In this 

regard, items 1 through 8 of Schedule 

RC–S involve the reporting of 

information for securitizations that the 

reporting bank has accounted for as 

sales. Therefore, after the effective date 

of Statements Nos. 166 and 167, a bank 

should report information in items 1 

through 8 only for those securitizations 

for which the transferred assets qualify 

for sale accounting or are otherwise not 

carried as assets on the bank’s 

consolidated balance sheet. Thus, if a 

securitization transaction that qualified 

for sale accounting prior to the effective 

date of Statements Nos. 166 and 167 

must be brought back onto the reporting 

bank’s consolidated balance sheet upon 

adoption of these statements, the bank 

would no longer report information 

about the securitization in items 1 

through 8 of Schedule RC–S. 

Items 11 and 12 of Schedule RC–S are 

applicable to assets that the reporting 

bank has sold with recourse or other 

seller-provided credit enhancements, 

but has not securitized. In 

Memorandum item 1 of Schedule RC–S, 

a bank reports certain transfers of small 

business obligations with recourse that 

qualify for sale accounting. The scope of 

these items will continue to be limited 

to such sold financial assets after the 

effective date of Statements Nos. 166 

and 167. In Memorandum item 2 of 

Schedule RC–S, a bank currently reports 

the outstanding principal balance of 

loans and other financial assets that it 

services for others when the servicing 

has been purchased or when the assets 

have been originated or purchased and 

subsequently sold with servicing 

retained. Thus, after the effective date of 

Statements Nos. 166 and 167, a bank 

should report retained servicing for 

those assets or portions of assets 

reported as sold as well as purchased 

servicing in Memorandum item 2. 

Finally, Memorandum item 3 of 

Schedule RC–S collects data on assetbacked commercial paper conduits 

regardless of whether the reporting bank 

must consolidate the conduit in 

accordance with FASB Interpretation 

No. 46(R). This will continue to be the 

case after the effective date of Statement 

No. 167, which amended this FASB 

interpretation. 

The agencies plan to evaluate the 

disclosure requirements in Statements 

Nos. 166 and 167 and the disclosure 

practices that develop in response to 

these requirements. This evaluation will 

assist the agencies in determining the 

need for revisions to Schedule RC–S 

that will improve their ability to assess 

the nature and scope of banks’ 

involvement with securitization and 

structured finance activities, including 

those accounted for as sales and those 

accounted for as secured borrowings. 

Such revisions, which would not be 

implemented before March 2011, would 

be incorporated into a formal proposal 

that the agencies would publish with a 

request for comment in accordance with 

the requirements of the Paperwork 

Reduction Act of 1995. 

In addition, should new Call Report 

data items pertaining to securitization 

and structured finance transactions be 

necessary for regulatory capital 

calculation purposes after the effective 

date of Statements No. 166 and 167, a 

proposal to collect these data items 

would be incorporated into any notice 

of proposed rulemaking to amend the 

agencies regulatory capital standards 

that the agencies would publish for 

comment in the Federal Register. 

B. Trading Assets That Are Past Due or 

in Nonaccrual Status 

In the proposed Call Report revisions 

for 2009, which were issued for 

comment on September 23, 2008,10 the 

agencies proposed to replace Schedule 

RC–N, Past Due and Nonaccrual Loans, 

Leases, and Other Assets, item 9, for 

‘‘Debt securities and other assets’’ that 

are past due 30 days or more or in 

nonaccrual status with two separate 

items: item 9.a, ‘‘Trading assets,’’ and 

item 9.b, ‘‘All other assets (including 

available-for-sale and held-to-maturity 

securities).’’ The agencies also proposed 

to expand the scope of Schedule RC–D, 

Trading Assets and Liabilities, 

Memorandum item 3, ‘‘Loans measured 

at fair value that are past due 90 days 


jlentini on DSKJ8SOYB1PROD with NOTICES
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or more,’’ to include loans held for 

trading and measured at fair value that 

are in nonaccrual status. The agencies 

proposed to collect this information to 

improve their ability to assess the 

quality of assets held for trading 

purposes and generally enhance 

surveillance and examination planning 

efforts. One commenter on these 

proposed reporting changes questioned 

the meaningfulness of delinquency and 

nonaccrual data for trading assets 

because they are accounted for at fair 

value through earnings. After fully 

considering this commenter’s views, the 

agencies have decided not to implement 

the proposed revisions to Schedule RC– 

N, item 9, and Schedule RC–D, 

Memorandum item 3. These items will 

remain in their current form. 

C. Unpaid Premiums on Certain Credit 

Derivatives 

The agencies’ proposed Call Report 

revisions for 2009 also included the 

addition of new Memorandum items 3.a 

and 3.b to Schedule RC–R, Regulatory 

Capital, to collect the present value of 

unpaid premiums on credit derivatives 

for which the bank is the protection 

seller that are defined as covered 

positions under the agencies’ market 

risk capital guidelines. This present 

value information was to be reported by 

remaining maturity and with a 

breakdown between investment grade 

and subinvestment grade for the rating 

of the underlying reference asset. One 

commenter on this proposed credit 

derivative data requested clarification of 

the impact of the reporting requirement 

on a bank’s risk-based capital 

calculations. The agencies have 

reconsidered this proposed reporting 

change and have decided not to add 

these new Memorandum items to 

Schedule RC–R. 

IV. Request for Comment 

Public comment is requested on all 

aspects of this joint notice. Comments 

are invited specifically on: 

(a) Whether the proposed revisions to 

the Call Report collections of 

information 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 and will be summarized or 

included in the agencies’ requests for 

OMB approval. All comments will 

become a matter of public record. 

Dated: August 12, 2009. 

Michele Meyer, 

Assistant Director, Legislative and Regulatory 

Activities Division, Office of the Comptroller 

of the Currency. 

Board of Governors of the Federal Reserve 

System, August 13, 2009. 

Jennifer J. Johnson, 

Secretary of the Board. 

Dated at Washington, DC, this 11th day of 

August 2009. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. E9–19911 Filed 8–18–09; 8:45 am] 

BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

Proposed Agency Information 

Collection Activities; Comment 

Request—Thrift Financial Report: 

Schedules SC, RM, CC, DI, and SB 

AGENCY: Office of Thrift Supervision 

(OTS), Treasury. 

ACTION: Notice and request for comment. 

SUMMARY: The Department of the 

Treasury, as part of its continuing effort 

to reduce paperwork and respondent 

burden, invites the general public and 

other federal agencies to comment on 

proposed and continuing information 

collections, as required by the 

Paperwork Reduction Act of 1995, 44 

U.S.C. 3507. Today, the Office of Thrift 

Supervision within the Department of 

the Treasury solicits comments on 

proposed changes to the Thrift Financial 

Report (TFR), Schedule SC— 

Consolidated Statement of Condition, 

Schedule CC—Consolidated 

Commitments and Contingencies, 

Schedule DI—Consolidated Deposit 

Information, Schedule SB— 

Consolidated Small Business Loans, and 

on a proposed new schedule, Schedule 

RM—Annual Supplemental 

Consolidated Data on Reverse 

Mortgages. The changes are proposed to 

become effective in March 2010 except 

for the proposed new schedule RM 

which would become effective in 

December 2010. 

At the end of the comment period, 

OTS will analyze the comments and 

recommendations received to determine 

if it should modify the proposed 

revisions prior to giving its final 

approval. OTS will then submit the 

revisions to the Office of Management 

and Budget (OMB) for review and 

approval. 

DATES: Submit written comments on or 

before October 19, 2009. 

ADDRESSES: Send comments to 

Information Collection Comments, Chief 

Counsel’s Office, Office of Thrift 

Supervision, 1700 G Street, NW., 

Washington, DC 20552; send facsimile 

transmissions to FAX number (202) 

906–6518; send e-mails to 

infocollection.comments@ots.treas.gov; 

or hand deliver comments to the 

Guard’s Desk, east lobby entrance, 1700 

G Street, NW., on business days 

between 9 a.m. and 4 p.m. All 

comments should refer to ‘‘TFR 

Revisions—2010, OMB No. 1550–0023.’’ 

OTS will post comments and the related 

index on the OTS Internet Site at 

http://www.ots.treas.gov. In addition, 

interested persons may inspect 

comments at the Public Reading Room, 

1700 G Street, NW., by appointment. To 

make an appointment, call (202) 906– 

5922, send an e-mail to 

publicinfo@ots.treas.gov, or send a 

facsimile transmission to (202) 906– 

7755. 

FOR FURTHER INFORMATION CONTACT: You 

can access sample copies of the 

proposed 2010 TFR forms on OTS’s 

Web site at http://www.ots.treas.gov or 

you may request them by electronic 

mail from tfr.instructions@ots.treas.gov. 

You can request additional information 

about this proposed information 

collection from James Caton, Director, 

Financial Monitoring and Analysis 

Division, (202) 906–5680, Office of 

Thrift Supervision, 1700 G Street, NW., 

Washington, DC 20552. 

SUPPLEMENTARY INFORMATION: 

Title: Thrift Financial Report. 

OMB Number: 1550–0023. 

Form Number: OTS 1313. 

Abstract: OTS is proposing to revise 

and extend for three years the TFR, 

which is currently an approved 

collection of information. 

All OTS-regulated savings 

associations must comply with the 

information collections described in this 

notice. OTS collects this information 

each calendar quarter or less frequently 

if so stated. OTS uses this information 

to monitor the condition, performance, 

and risk profile of individual 


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