Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 66933 

1These criteria may be found in 49 CFR part 391, 

Appendix A to Part 391—Medical Advisory 

Criteria, Section D. Cardiovascular: § 391.41(b)(4), 

paragraph 4, which is available on the internet at 

https://www.gpo.gov/fdsys/pkg/CFR-2015-title49- 

vol5/pdf/CFR-2015-title49-vol5-part391-appA.pdf. 

individuals/privacy/privacy-act-systemrecords-notices, the comments are 

searchable by the name of the submitter. 

II. Background 

Under 49 U.S.C. 31136(e) and 

31315(b), FMCSA may grant an 

exemption from the FMCSRs for no 

longer than a 5-year period if it finds 

such exemption would likely achieve a 

level of safety that is equivalent to, or 

greater than, the level that would be 

achieved absent such exemption. The 

statutes also allow the Agency to renew 

exemptions at the end of the 5-year 

period. FMCSA grants medical 

exemptions from the FMCSRs for a 2- 

year period to align with the maximum 

duration of a driver’s medical 

certification. 

The two individuals listed in this 

notice have requested an exemption 

from § 391.41(b)(4). Accordingly, the 

Agency will evaluate the qualifications 

of each applicant to determine whether 

granting the exemption will achieve the 

required level of safety mandated by 

statute. 

The physical qualification standard 

found in § 391.41(b)(4) states that a 

person is physically qualified to drive a 

CMV if that person has no current 

clinical diagnosis of myocardial 

infarction, angina pectoris, coronary 

insufficiency, thrombosis, or any other 

cardiovascular disease of a variety 

known to be accompanied by syncope, 

dyspnea, collapse, or congestive cardiac 

failure. 

In addition to the regulations, FMCSA 

has published advisory criteria 1 to 

assist medical examiners in determining 

whether drivers with certain medical 

conditions are qualified to operate a 

CMV in interstate commerce. The 

advisory criteria states that ICDs are 

disqualifying due to risk of syncope. 

III. Qualification of Applicant 

Dean Cece 

Dean Cece is a class C driver’s license 

holder in North Carolina. In letters 

dated May 16, 2022, November 11, 

2023, and February 15, 2023, Dean 

Cece’s cardiology team reports that the 

ICD was implanted on December 7, 

1998. They state there have been no 

discharges from the ICD and from a 

cardiac perspective, Dean Cece 

continues to be stable with no limitation 

of physical activity, consistent with a 

New York Heart Association class I 

rating. 

Donald Roach 

Donald Roach is a class D driver’s 

license holder in Kentucky. In a letter 

dated May 12, 2023, Donald Roach’s 

cardiologist reports that their ICD was 

implanted on August 31, 2015. They 

state there have been no discharges from 

the ICD and from a cardiac standpoint, 

Donald Roach continues to be stable 

with no symptoms. 

IV. Request for Comments 

In accordance with 49 U.S.C. 31136(e) 

and 31315(b), FMCSA requests public 

comment from all interested persons on 

the exemption petitions described in 

this notice. We will consider all 

comments received before the close of 

business on the closing date indicated 

under the DATES section of the notice. 

Larry W. Minor, 

Associate Administrator for Policy. 

[FR Doc. 2023–21198 Filed 9–27–23; 8:45 am] 

BILLING CODE 4910–EX–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

FEDERAL RESERVE SYSTEM 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

Proposed Agency Information 

Collection Activities; Comment 

Request 

AGENCY: Office of the Comptroller of the 

Currency (OCC), Treasury; Board of 

Governors of the Federal Reserve 

System (Board); and Federal Deposit 

Insurance Corporation (FDIC). 

ACTION: Joint notice and request for 

comment. 

SUMMARY: In accordance with the 

requirements of the Paperwork 

Reduction Act of 1995 (PRA), the OCC, 

the Board, and the FDIC (the agencies) 

may not conduct or sponsor, and the 

respondent is not required to respond 

to, an information collection unless it 

displays a currently valid Office of 

Management and Budget (OMB) control 

number. 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 for three 

years 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 for three years the 

Report of Assets and Liabilities of U.S. 

Branches and Agencies of Foreign Banks 

(FFIEC 002), and the Report of Assets 

and Liabilities of a Non-U.S. Branch that 

is Managed or Controlled by a U.S. 

Branch or Agency of a Foreign (NonU.S.) Bank (FFIEC 002S), which are also 

currently approved collections of 

information. The agencies are requesting 

comment on proposed revisions related 

to the Financial Accounting Standards 

Board’s (FASB) Accounting Standards 

Update (ASU) 2022–02, ‘‘Financial 

Instruments—Credit Losses (Topic 326): 

Troubled Debt Restructurings and 

Vintage Disclosures’’ (ASU 2022–02); 

reporting of past due loans; and 

reporting of internet website addresses 

of depository institution trade names. 

The revisions are proposed to take effect 

with the March 31, 2024, report date. 

DATES: Comments must be submitted on 

or before November 27, 2023. 

ADDRESSES: Interested parties are 

invited to submit written comments to 

any or all of the agencies. All comments 

will be shared among the agencies. 

OCC: You may submit comments, by 

any of the following methods: 

• Email: prainfo@occ.treas.gov. 

• Mail: Chief Counsel’s Office, Office 

of the Comptroller of the Currency, 

Attention: 1557–0081, 400 7th Street 

SW, Suite 3E–218, Washington, DC 

20219. 

• Hand Delivery/Courier: 400 7th 

Street SW, Suite 3E–218, Washington, 

DC 20219. 

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. Hover over the 

‘‘Information Collection Review’’ drop 


ddrumheller on DSK120RN23PROD with NOTICES1
66934 Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 

down menu and select ‘‘Information 

Collection Review.’’ 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 Revisions,’’ by any of the 

following methods: 

• Agency website: http://

www.federalreserve.gov. Follow the 

instructions for submitting comments at: 

http://www.federalreserve.gov/ 

generalinfo/foia/ProposedRegs.cfm. 

• Email: regs.comments@

federalreserve.gov. Include ‘‘Call Report 

and FFIEC 002 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 Revisions,’’ by any of the 

following methods: 

• Agency website: https://

www.fdic.gov/resources/regulations/ 

federal-register-publications/. Follow 

the instructions for submitting 

comments on the FDIC’s website. 

• Email: comments@FDIC.gov. 

Include ‘‘Call Report and FFIEC 002 

Revisions’’ in the subject line of the 

message. 

• Mail: Manuel E. Cabeza, Counsel, 

Attn: Comments, Room MB–3128, 

Federal Deposit Insurance Corporation, 

550 17th Street NW, Washington, DC 

20429. 

• Hand Delivery: Comments may be 

hand delivered to the guard station at 

the rear of the 550 17th Street NW 

building (located on F Street NW) on 

business days between 7 a.m. and 5 p.m. 

• Public Inspection: All comments 

received, including any personal 

information provided, will be posted 

without change to https://www.fdic.gov/ 

resources/regulations/federal-registerpublications/. Commenters should 

submit only information that the 

commenter wishes to make available 

publicly. The FDIC may review, redact, 

or refrain from posting all or any portion 

of any comment that it may deem to be 

inappropriate for publication, such as 

irrelevant or obscene material. The FDIC 

may post only a single representative 

example of identical or substantially 

identical comments, and in such cases 

will generally identify the number of 

identical or substantially identical 

comments represented by the posted 

example. All comments that have been 

redacted, as well as those that have not 

been posted, that contain comments on 

the merits of this document will be 

retained in the public comment file and 

will be considered as required under all 

applicable laws. All comments may be 

accessible under the Freedom of 

Information Act. 

Additionally, commenters may send a 

copy of their comments to the OMB 

desk officer for the agencies by mail to 

the Office of Information and Regulatory 

Affairs, U.S. Office of Management and 

Budget, New Executive Office Building, 

Room 10235, 725 17th Street NW, 

Washington, DC 20503; by fax to (202) 

395–6974; or by email to oira_

submission@omb.eop.gov. 

FOR FURTHER INFORMATION CONTACT: For 

further information about the proposed 

revisions to the information collections 

discussed in this notice, please contact 

any of the agency staff whose names 

appear below. In addition, copies of the 

report forms for the Call Reports can be 

obtained at the FFIEC’s website (https:// 

www.ffiec.gov/ffiec_report_forms.htm). 

OCC: Kevin Korzeniewski, Counsel, 

Chief Counsel’s Office, (202) 649–5490. 

If you are deaf, hard of hearing, or have 

a speech disability, please dial 7–1–1 to 

access telecommunications relay 

services. 

Board: Nuha Elmaghrabi, Federal 

Reserve Board Clearance Officer, (202) 

452–3884, Office of the Chief Data 

Officer, Board of Governors of the 

Federal Reserve System, 20th and C 

Streets NW, Washington, DC 20551. 

Telecommunications Device for the Deaf 

(TDD) users may call (202) 263–4869. 

FDIC: Manuel E. Cabeza, Counsel, 

(202) 898–3767, Legal Division, Federal 

Deposit Insurance Corporation, 550 17th 

Street NW, Washington, DC 20429. 

SUPPLEMENTARY INFORMATION: 

I. Affected Reports 

The proposed changes discussed 

below affect the Call Reports and the 

FFIEC 002. 

A. Call Report 

The agencies propose to extend for 

three years, with revision, their 

information collections associated with 

the FFIEC 031, FFIEC 041, and FFIEC 

051 Call Reports. 

Report Title: Consolidated Reports of 

Condition and Income (Call Report). 

Form Number: FFIEC 031 

(Consolidated Reports of Condition and 

Income for a Bank with Domestic and 

Foreign Offices), FFIEC 041 

(Consolidated Reports of Condition and 

Income for a Bank with Domestic 

Offices Only), and FFIEC 051 

(Consolidated Reports of Condition and 

Income for a Bank with Domestic 

Offices Only and Total Assets Less Than 

$5 Billion). 

Frequency of Response: Quarterly. 

Affected Public: Business or other forprofit. 

Type of Review: Revision and 

extension of currently approved 

collections. 

OCC: 

OMB Control No.: 1557–0081. 

Estimated Number of Respondents: 

1,015 national banks and federal savings 

associations. 

Estimated Average Burden per 

Response: 40.76 burden hours per 

quarter to file. 

Estimated Total Annual Burden: 

165,486 burden hours to file. 

Board: 

OMB Control No.: 7100–0036. 

Estimated Number of Respondents: 

699 state member banks. 

Estimated Average Burden per 

Response: 44.21 burden hours per 

quarter to file. 

Estimated Total Annual Burden: 

123,611 burden hours to file. 

FDIC: 

OMB Control No.: 3064–0052. 

Estimated Number of Respondents: 

2,990 insured state nonmember banks 

and state savings associations. 

Estimated Average Burden per 

Response: 38.95 burden hours per 

quarter to file. 

Estimated Total Annual Burden: 

465,842 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 84.53 (FFIEC 031), 54.60 

(FFIEC 041), and 34.52 (FFIEC 051). The 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 66935 

1www.ffiec.gov/forms031.htm; www.ffiec.gov/ 

forms041.htm; www.ffiec.gov/forms051.htm. 

changes to the Call Report forms and 

instructions proposed in this notice 

would result in an estimated increase in 

burden hours per quarter for the FFIEC 

051 of 0.12 hours. This increase in 

burden results from the proposed 

change in frequency for Schedule RC– 

M, Memoranda, items 8.a. through 8.c, 

as discussed in Section II. C, below. The 

proposed revisions and clarifications in 

this notice are not anticipated to change 

the estimated burden for the FFIEC 031 

and the FFIEC 041. 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. In addition to the proposed 

revisions discussed below, Call Reports 

are periodically updated to clarify 

instructional guidance and correct 

grammatical and typographical errors on 

the forms and instructions, which are 

published on the FFIEC website.1 These 

non-substantive updates may also be 

commented upon. 

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 forprofit. 

Respondents: All state-chartered or 

federally-licensed U.S. branches and 

agencies of foreign banking 

organizations, and all non-U.S. branches 

managed or controlled by a U.S. branch 

or agency of a foreign banking 

organization. 

Estimated Number of Respondents: 

FFIEC 002—183; FFIEC 002S—18. 

Estimated Average Burden per 

Response: FFIEC 002—24.67 hours; 

FFIEC 002S—6.0 hours. 

Estimated Total Annual Burden: 

FFIEC 002—18,058 hours; FFIEC 002S— 

432 hours. 

Type of Review: Extension and 

revision of currently approved 

collections. 

The proposed revisions to the FFIEC 

002 instructions in this notice would 

not have a material impact on the 

existing burden estimates. 

Legal Basis and Need for Collection 

On a quarterly basis, all U.S. branches 

and agencies of foreign banks are 

required to file the FFIEC 002, which is 

a detailed report of condition with a 

variety of supporting schedules. This 

information is used to fulfill the 

supervisory and regulatory requirements 

of the International Banking Act of 

1978. The data also are used to augment 

the bank credit, loan, and deposit 

information needed for monetary policy 

and other public policy purposes. In 

addition, FFIEC 002 data are used to 

calculate the risk-based assessments for 

FDIC-insured U.S. branches of foreign 

banks. The FFIEC 002S is a supplement 

to the FFIEC 002 that collects 

information on assets and liabilities of 

any non-U.S. branch that is managed or 

controlled by a U.S. branch or agency of 

the foreign bank. A non-U.S. branch is 

managed or controlled by a U.S. branch 

or agency if a majority of the 

responsibility for business decisions, 

including but not limited to decisions 

with regard to lending or asset 

management or funding or liability 

management, or the responsibility for 

recordkeeping in respect of assets or 

liabilities for that foreign branch resides 

at the U.S. branch or agency. A separate 

FFIEC 002S must be completed for each 

managed or controlled non-U.S. branch. 

The FFIEC 002S must be filed quarterly 

along with the U.S. branch or agency’s 

FFIEC 002. 

These information collections are 

mandatory (12 U.S.C. 1817(a)(1) and (3), 

3102(b), and 3105(c)(2)). 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. ASU 2022–02, ‘‘Financial 

Instruments—Credit Losses (Topic 326): 

Troubled Debt Restructurings and 

Vintage Disclosures’’ 

1. Background 

On March 31, 2022, the FASB issued 

ASU 2022–02 which eliminates the 

troubled debt restructuring (TDR) 

recognition and measurement guidance 

for entities that have adopted ASU 

2016–13, ‘‘Financial Instruments— 

Credit Losses (Topic 326): Measurement 

of Credit Losses on Financial 

Instruments’’ (ASU 2016–13). Instead of 

identifying and accounting for TDRs 

separately from other loan 

modifications, all loans modified from 

the beginning of the fiscal year in which 


ddrumheller on DSK120RN23PROD with NOTICES1
66936 Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 

2On October 18, 2022, the FDIC Board adopted 

a final rule to incorporate ASU 2022–02, available 

at: https://www.fdic.gov/news/board-matters/2022/ 

2022-10-18-notice-sum-b-fr.pdf, in the risk-based 

deposit insurance assessment system applicable to 

all large and highly complex insured depository 

institutions as defined in the FDIC’s assessment 

regulations. See 12 CFR 327.8(f), (g) and 12 CFR 

327.16(b). 

the new standard is adopted by an 

institution would be accounted for in 

accordance with ASC Section 310–20– 

35, Receivables—Nonrefundable Fees 

and Other Costs—Subsequent 

Measurement, as amended by ASU 

2022–02. In addition, the new standard 

enhances financial statement disclosure 

requirements for certain loan 

modifications to borrowers experiencing 

financial difficulty. These disclosures 

include quantitative information about 

the modifications and their performance 

and qualitative information regarding 

how initial modifications and 

subsequent performance of such 

modifications impact the allowance for 

credit losses. 

Upon adoption of ASU 2022–02, an 

institution would have the option to use 

a modified retrospective transition 

method to account for those TDRs that 

existed as of the last day of the fiscal 

year preceding the fiscal year in which 

the standard was implemented. For 

these TDRs, an institution would 

recognize a cumulative-effect 

adjustment to the beginning balance of 

retained earnings as of the first day of 

the fiscal year resulting from the 

adoption of ASU 2022–02. Institutions 

that opt to apply ASU 2022–02 

prospectively would continue applying 

the TDR guidance to the existing TDR 

loans for allowance for credit losses 

purposes until the loans are paid in full 

or otherwise settled, sold, charged-off, 

or subsequently modified. 

Regardless of the transition method 

applied to existing TDRs, institutions 

would apply ASU 2022–02 to all 

modifications made from the beginning 

of the fiscal year of adoption and in 

subsequent reporting periods. 

Institutions would only include loans 

that were modified to borrowers 

experiencing financial difficulty from 

the beginning of the fiscal year of 

adoption and in subsequent periods in 

their disclosures for financial statement 

purposes. TDRs or modifications made 

prior to the beginning of the fiscal year 

of adoption would not be included in 

these enhanced disclosures in the 

period of adoption or in any subsequent 

periods. 

Additionally, per ASU 2022–02, an 

institution would not be required to use 

a discounted cash flow (DCF) approach 

to measure the allowance for credit loss 

on the modified loans. However, if an 

institution chooses to use a DCF 

approach, it would be required to use 

the post-modification effective interest 

rate to discount expected cash flows. 

Modified loans for which repayment is 

expected to be provided substantially 

through the operation or sale of the 

collateral when the borrower is 

experiencing financial difficulty would 

still be considered to be collateral 

dependent. For regulatory reporting 

purposes, the allowance for credit losses 

for a collateral dependent loan would 

continue to be measured using the fair 

value of collateral (less cost to sell, 

when appropriate), regardless of 

whether foreclosure is probable. 

ASU 2022–02 is effective for all 

institutions that have adopted ASU 

2016–13 for fiscal years beginning after 

December 15, 2022, including interim 

reporting periods within those fiscal 

years. For all other institutions, the 

effective date for ASU 2022–02 would 

be the same as the effective date for 

ASU 2016–13. 

2. Proposed Changes 

In response to ASU 2022–02, the 

agencies are proposing revisions to the 

Call Report forms and instructions. In 

general, these revisions would align the 

data collected in the Call Report forms 

and instructions with the definition of 

loan modifications to borrowers 

experiencing financial difficulty that is 

used in U.S. generally accepted 

accounting principles (GAAP). The 

banking agencies are proposing to 

replace, as appropriate, references to 

‘‘troubled debt restructurings’’ with 

‘‘modifications to borrowers 

experiencing financial difficulty’’ in the 

Call Report forms and instructions, and 

to update the Glossary to reflect the 

change in accounting for modifications 

to borrowers experiencing financial 

difficulty. 

These changes are intended to 

provide data needed to monitor banks’ 

safety and soundness and for FDIC 

deposit insurance assessment purposes. 

The proposed revisions would assist the 

agencies in gaining a better 

understanding of banks’ credit 

exposures. Specifically, the loan 

modifications to borrowers experiencing 

financial difficulty reported in Call 

Report Schedule RC–C, Part I, Loans 

and Leases, Memorandum item 1, and 

Schedule RC–N, Past Due and 

Nonaccrual Loans, Leases, and Other 

Assets, Memorandum item 1 would 

enable the agencies to better understand 

the level of loan modification activity at 

institutions and the categories of loans 

involved in this activity. The agencies 

would benefit from continued reliable 

data outside of on-site examinations to 

assess modification activity, particularly 

given current increased risks related to 

commercial real estate loans and 

commercial and industrial loans. In 

addition, the proposed changes are 

needed to calculate deposit insurance 

assessments for large or highly complex 

institutions as defined in FDIC 

regulations.2

Institutions that have fiscal years 

beginning in the fourth quarter of 2023, 

and choose not to early adopt the 

standard, will not apply the standard in 

the Call Report and/or the FFIEC 002 

until the December 31, 2023, report 

date. The proposed revisions to specific 

data items resulting from the 

elimination of the TDR recognition and 

measurement guidance would be 

reflected in the forms as of the March 

31, 2024, report date, as outlined in the 

following descriptions of the proposed 

changes to the affected Call Report and 

FFIEC 002 schedules. 

Through December 31, 2023, the 

quarterly Supplemental Instructions for 

the Call Report will include guidance 

for institutions that have adopted ASU 

2022–02 on reporting the data items 

related to loan modifications to 

borrowers experiencing financial 

difficulty. 

3. Specific Revisions to the Call Reports 

Schedule RC–C and Schedule RC–N 

Upon adoption of ASU 2022–02, 

institutions would continue to report 

detail on loan modifications to 

borrowers experiencing financial 

difficulty in Call Report Schedule RC– 

C, Part I, Loans and Leases, 

Memorandum item 1, and Schedule RC– 

N, Past Due and Nonaccrual Loans, 

Leases, and Other Assets, Memorandum 

item 1. However, the modifications 

reported in these Memoranda items 

would need to meet the definition of 

‘‘loan modifications to borrowers 

experiencing financial difficulty’’ as 

described in ASU 2022–02, rather than 

the GAAP definition related to 

‘‘troubled debt restructurings.’’ Loan 

modifications to borrowers experiencing 

financial difficulty include financing 

receivables that had been modified in 

the form of principal forgiveness, an 

interest rate reduction, an other-thaninsignificant payment delay, or a term 

extension (or a combination thereof). 

The Call Report forms and instructions 

would be updated to include in the item 

descriptions and instructions references 

to ‘‘loan modifications to borrowers 

experiencing financial difficulty’’ and 

remove references to the TDR 

framework. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 66937 

3See ASC 310–10–50–44. 

4 12 CFR part 30, appendix A (OCC); 12 CFR part 

208 Appendix D–1 (Board); and 12 CFR part 364 

appendix A (FDIC). 

The Call Report provides the agencies 

with data to be used in monitoring the 

condition, performance, and risk profile 

of individual institutions and the 

industry as a whole. This data serves a 

regulatory or public policy purpose by 

assisting the agencies in fulfilling their 

shared missions of ensuring the safety 

and soundness of supervised financial 

institutions and the stability of the 

financial system utilizing statistical data 

for identifying areas of focus for both 

on-site and off-site supervision. The 

information needed for these purposes 

at times may differ from information 

required by GAAP as accounting 

standards are not specifically tailored to 

the needs of the financial institution 

regulators. 

ASU 2022–02 requires financial 

statement disclosures on loan 

modifications to borrowers experiencing 

financial difficulty made ‘‘within the 

previous 12 months preceding the 

payment default when the debtor was 

experiencing financial difficulty at the 

time of the modification.’’ 3 However, as 

evidenced by the modifications made 

during the COVID–19 pandemic in 

2020, 2021, and 2022, it may take longer 

than 12 months following the 

modification to assess whether loans are 

performing in accordance with their 

modified terms and if the borrower is no 

longer experiencing financial difficulty. 

Reporting modifications on the Call 

Report for a period greater than 12 

months would increase the reporting 

period beyond that required by the 

financial statement disclosure 

requirements in ASU 2022–02. 

However, the ability to monitor 

modifications made by institutions to 

borrowers experiencing financial 

difficulty provides useful supervisory 

information on the borrower’s 

continued performance or lack thereof 

on the modified loan. Due to these 

factors, the agencies are proposing to 

require reporting of these modifications 

for a minimum period of 12 months and 

until an institution performs a current, 

well documented credit evaluation to 

support that the borrower is no longer 

experiencing financial difficulty, unless 

the loan is paid off, charged-off, sold, or 

otherwise settled. Performing a current, 

well documented credit evaluation to 

support that the borrower is no longer 

experiencing financial difficulty is 

consistent with the Interagency 

Guidelines Establishing Standards for 

Safety and Soundness issued by the 

Board, FDIC, and OCC,4 which 

articulate safety and soundness 

standards for supervised financial 

institutions to establish and maintain 

prudent credit underwriting practices 

and maintain systems to identify 

distressed assets and manage 

deterioration in those assets. 

The agencies invite comment on this 

proposal and are particularly interested 

in understanding any operational 

challenges and the nature of any loan 

systems changes necessary to 

accommodate the Call Report collection 

of data on loan modifications to 

borrowers experiencing financial 

difficulty for a minimum period of 12 

months and until an institution 

performs a current, well documented 

credit evaluation to support that the 

borrower is no longer experiencing 

financial difficulty, unless the loan is 

paid off, charged-off, sold, or otherwise 

settled. 

Question 1: What additional factors, if 

any, should the agencies consider when 

determining the length of time that a 

loan modification to a borrower 

experiencing financial difficulty must 

be reported in Schedule RC–C and RC– 

N memoranda items? 

Question 2: What are the advantages 

or disadvantages of reporting loan 

modifications for a period longer than 

12 months as required for financial 

statement disclosures for applicable 

institutions under ASU 2022–02? 

Schedule RC–M 

Upon adoption of ASU 2022–02, 

institutions would continue to report 

detail on other real estate owned in 

Schedule RC–M, Memoranda, item 3. 

However, instructional references to 

ASC Subtopic 310–40, ReceivablesTroubled Debt Restructurings by 

Creditors (ASC Subtopic 310–40) would 

be updated to ASC Subtopic 310–20, 

Receivables-Nonrefundable Fees and 

Other Costs (ASC Subtopic 310–20). The 

Call Report instructions would be 

updated to include the updated 

codification references. 

Schedule RC–O 

Upon adoption of ASU 2022–02, 

institutions that meet the FDIC’s 

definition of large institutions or highly 

complex institutions for deposit 

insurance assessment purposes would 

continue to report loans that have been 

modified to borrowers experiencing 

financial difficulty in Call Report 

Schedule RC–O, Other Data for Deposit 

Insurance Assessments, renamed 

Memorandum item 16, ‘‘Portion of loan 

modifications to borrowers experiencing 

financial difficulty that are in 

compliance with their modified terms 

and are guaranteed or insured by the 

U.S. government (including the FDIC) 

(included in Schedule RC–C, Part I, 

Memorandum item 1).’’ However, the 

modifications reported in this 

Memorandum item would be those that 

are guaranteed or insured by the U.S. 

government (including the FDIC) and 

meet the definition of ‘‘loan 

modifications to borrowers experiencing 

financial difficulty,’’ rather than the 

definition related to ‘‘loans restructured 

in troubled debt restructurings.’’ Both 

the FFIEC 031 and FFIEC 041 Call 

Report forms and instructions would be 

updated to include in the item 

descriptions and instructions references 

to ‘‘loan modification to borrowers 

experiencing financial difficulty’’ as 

described in ASU 2022–02 and remove 

references to the TDR framework. 

Glossary 

Effective March 31, 2024, to address 

the elimination of the TDR recognition 

and measurement guidance in ASU 

2022–02, the agencies propose to revise 

or eliminate, as appropriate, the 

following Glossary entries to provide 

additional information for those 

institutions that have adopted ASU 

2022–02 and to remove redundant 

entries: (1) ‘‘Allowance for Credit 

Losses,’’ (2) ‘‘Foreclosed Assets,’’ (3) 

‘‘Loan Fees,’’ (4) ‘‘Nonaccrual Status,’’ 

(5) ‘‘Renegotiated Troubled Debt,’’ (6) 

‘‘Troubled Debt Restructurings,’’ (7) 

‘‘Loan Impairment,’’ and (8) ‘‘Purchased 

Credit-Impaired Loans and Debt 

Securities.’’ Additionally, a new entry 

for ‘‘Loan Modifications to Borrowers 

Experiencing Financial Difficulty’’ 

would be included in the Glossary. 

4. Revisions to the FFIEC 002 

The Board’s proposed revisions to the 

FFIEC 002 are intended to align with 

similar changes proposed to the Call 

Report and discussed in the prior 

section. 

Schedule N 

Upon adoption of ASU 2022–02, 

institutions would continue to report 

detail on loan modifications to 

borrowers experiencing financial 

difficulty in FFIEC 002 Schedule N, Past 

Due, Nonaccrual, and Restructured 

Loans, Columns C and D. The 

modifications reported in these columns 

would meet the definition of 

‘‘modifications to borrowers 

experiencing financial difficulty’’ as 

described in ASU 2022–02, rather than 

the definition related to ‘‘troubled debt 

restructurings.’’ The FFIEC 002 

instructions would be updated to 

include references to ‘‘modifications to 

borrowers experiencing financial 


ddrumheller on DSK120RN23PROD with NOTICES1
66938 Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 

5See, e.g., United States v. Harra, 985 F.3d 196 

(3d Cir. 2021). 

difficulty’’ and remove references to the 

TDR framework. 

The agencies are proposing to align 

the time period for reporting applicable 

items on Schedule N with the Call 

Report Memorandum items described 

above. 

B. Past Due Definition 

The definition used to report loans as 

‘‘past due’’ is provided in the General 

Instructions to Schedule RC–N, Past 

Due and Nonaccrual Loans, Leases, and 

Other Assets. The agencies have become 

aware of questions regarding the 

classification of loans as past due, 

particularly when a past-due loan is in 

the process of being extended or 

refinanced.5 To address these questions 

and improve the consistency of past due 

reporting across institutions, the 

agencies are proposing three changes to 

the Schedule RC–N general instructions 

that define ‘‘past due’’. First, the 

proposed revisions clarify that reporting 

institutions must report as past due any 

loans that the reporting institution is in 

the process of restructuring if the 

restructuring process has not concluded 

(i.e., the restructuring has not been 

executed or become effective). Second, 

the proposed revisions would clarify 

that a loan or other asset should be 

reported as past due when either an 

interest payment or principal payment 

is due and unpaid for 30 days or longer. 

Third, the proposed revisions would 

restructure the definition to clarify the 

general rules for reporting past due 

loans, the exceptions to those general 

rules, and nonexclusive examples of 

reporting past due loans or other assets 

consistent with those instructions. 

Question 3: What, if any, other 

clarifications to the definition of ‘‘past 

due’’ should the agencies consider that 

would improve usability by institutions 

and comparability across the 

institutions? 

Question 4: While the agencies do not 

intend that these proposed changes 

would materially alter the way 

institutions currently assess and report 

past due loans, do institutions view any 

burden associated with implementing 

these proposed changes? 

C. Depository Institution Trade Names 

and Deposit Accepting URLs 

Schedule RC–M, Memoranda, items 

8.a. through 8.c. request information on 

institutions’ websites and trade names, 

particularly those used to solicit 

deposits. The agencies added these 

items to enable the FDIC to effectively 

serve as an information resource for 

depositors and the public seeking to 

identify the insured status of a physical 

branch office or internet website that 

uses a trade name rather than the legal 

name of the insured institution. 

However, the FDIC has observed some 

institutions reporting internet websites 

or trade names of non-bank entities, 

including third parties that accept or 

solicit deposits from the public on 

behalf of the FDIC-insured depository 

institution. As a result, the FDIC cannot 

effectively use this information to assist 

bank customers and the public in 

determining the insured status of an 

institution which is using a website or 

trade name to solicit deposits. 

In order to improve the effectiveness 

and usability of reporting these items, 

the agencies are proposing to clarify the 

instructions for items 8.a through 8.c. 

For item 8.a, ‘‘Uniform Resource Locator 

(URL) of the reporting institution’s 

primary internet website (home page), if 

any’’ the agencies would clarify that 

institutions would not report URLs of 

affiliates that are not insured depository 

institutions. For item 8.b, ‘‘URLs of all 

other public-facing internet websites 

that the reporting institution uses to 

accept or solicit deposits from the 

public, if any’’ the agencies would 

revise the instructions to clarify that an 

FDIC-insured depository institution 

would only reports URLs of publicfacing internet websites operated by the 

reporting FDIC-insured depository 

institution. The agencies would also 

clarify the instructions to indicate that 

an FDIC-insured depository institution 

would not report internet websites of 

any non-bank entity, including any 

third parties that accept or solicit 

deposits from the public on behalf of the 

reporting FDIC-insured depository 

institution. These third parties, which 

would not be reported in this item, 

would include any person or entity 

other than the insured institution that is 

acting as fiduciary in the placement of 

deposit funds into an FDIC-insured 

depository institution as described 

under 12 CFR 330.5 and 330.7 that is 

commonly referred to as ‘‘pass-through’’ 

deposit insurance coverage. For item 

8.c, ‘‘Trade names other than the 

reporting institution’s legal title used to 

identify one or more of the institution’s 

physical offices at which deposits are 

accepted or solicited from the public, if 

any’’ the agencies would clarify the 

instructions to exclude reporting of any 

non-bank affiliates or subsidiaries 

regardless of whether these entities 

solicit deposits. 

In addition, the agencies are 

proposing to increase the frequency of 

reporting of these items on the FFIEC 

051 from semi-annually to quarterly. 

Currently, items 8.a through 8.c are 

completed on a quarterly basis by 

institutions filing the FFIEC 031 and 

FFIEC 041 Call Report form and semiannually by those institutions filing the 

FFIEC 051 Call Report form. Quarterly 

reporting by the FFIEC 051 filers would 

provide more current information to 

assist the FDIC with identifying the 

insured status of institutions using the 

websites or trade names to solicit 

deposits. 

Question 5: The current instructions 

for item 8 request information regarding 

websites ‘‘operated by’’ an FDIC-insured 

depository institution. Does the phrase 

‘‘operated by’’ capture the appropriate 

population of URLs used by FDICinsured depository institutions or would 

an alternate phrase such as ‘‘owned by’’ 

be more appropriate? 

Question 6: Would these proposed 

instruction revisions clearly distinguish 

reporting deposit accepting activities of 

the institution under its own websites 

and trade names while excluding URLs 

used by third parties that facilitate passthrough insurance? 

Question 7: What additional burden, 

if any, would result from FFIEC 051 

filers reporting items 8.a through 8.c on 

a quarterly basis? 

III. Timing 

The proposed revisions to the Call 

Reports and the FFIEC 002 would take 

effect beginning with the March 31, 

2024, report date. The agencies invite 

comment on any difficulties that 

institutions would expect to encounter 

in implementing the systems changes 

necessary to accommodate the proposed 

revisions to the Call Reports and FFIEC 

002 consistent with this effective date. 

IV. 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, 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 66939 

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. 

Dated at Washington, DC, on August 29, 

2023. 

Theodore J. Dowd, 

Deputy Chief Counsel, Office of the 

Comptroller of the Currency. 

Michele Taylor Fennell, 

Deputy Associate Secretary of the Board. 

Board of Governors of the Federal Reserve 

System. 

James P. Sheesley, 

Assistant Executive Secretary. Federal 

Deposit Insurance Corporation. 

[FR Doc. 2023–21132 Filed 9–27–23; 8:45 am] 

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

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

Notice of OFAC Sanctions Action 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Notice. 

SUMMARY: The U.S. Department of the 

Treasury’s Office of Foreign Assets 

Control (OFAC) is publishing the names 

of persons that have been placed on 

OFAC’s Specially Designated Nationals 

and Blocked Persons List (SDN List) 

based on OFAC’s determination that one 

or more applicable legal criteria were 

satisfied. All property and interests in 

property subject to U.S. jurisdiction of 

these persons are blocked, and U.S. 

persons are generally prohibited from 

engaging in transactions with them. 

OFAC is also publishing updates to the 

identifying information of three persons 

currently included on the SDN List. 

DATES: See SUPPLEMENTARY INFORMATION

section for effective date(s). 

FOR FURTHER INFORMATION CONTACT: 

OFAC: Bradley T. Smith, Director, tel.: 

202–622–2490; Associate Director for 

Global Targeting, tel.: 202–622–2420; 

Assistant Director for Licensing, tel.: 

202–622–2480; Assistant Director for 

Regulatory Affairs, tel.: 202–622–4855; 

or the Assistant Director for Sanctions 

Compliance & Evaluation, tel.: 202–622– 

2490. 

SUPPLEMENTARY INFORMATION: 

Electronic Availability 

The SDN List and additional 

information concerning OFAC sanctions 

programs are available on OFAC’s 

website (https://www.treasury.gov/ofac). 

Notice of OFAC Action(s) 

A. On September 14, 2023, OFAC 

determined that the property and 

interests in property subject to U.S. 

jurisdiction of the following persons are 

blocked under the relevant sanctions 

authority listed below. 

BILLING CODE 4810–AL–P 


ddrumheller on DSK120RN23PROD with NOTICES1