Federal Register / Vol. 86, No. 138 / Thursday, July 22, 2021 / Notices 38813 

11 12 CFR part 3 (OCC); 12 CFR part 217 (Board); 

12 CFR part 324 (FDIC). 

12 85 FR 4362 (Jan. 24, 2020). 

13 12 CFR 3.34(a)(1)(ii) (OCC); 12 CFR 

217.34(a)(1)(ii) (Board); 12 CFR 324.34(a)(1)(ii) 

(FDIC). 

14 12 CFR 3.300(g) (OCC); 12 CFR 217.300(h) 

(Board); 12 CFR 324.300(g) (FDIC). 

15 12 CFR 3.34(a)(1)(ii) (OCC); 12 CFR 

217.34(a)(1)(ii) (Board); 12 CFR 324.34(a)(1)(ii) 

(FDIC). 

the Call Report raises significant 

supervisory and other concerns. 

Consistent with that determination, the 

agencies propose to revise the 

instructions to clarify that an institution 

must not derecognize DTAs for NOLs or 

tax credit carryforwards on its separateentity regulatory reports prior to the 

time when such carryforwards are 

absorbed by the consolidated group. 

B. Standardized Approach for 

Counterparty Credit Risk (SA–CCR) 

The agencies are proposing a revision 

to add a new item to the Call Report 

forms related to early or voluntary 

adoption of the standardized approach 

for counterparty credit risk methodology 

in the agencies’ capital rules.11

Background 

On January 24, 2020, the agencies 

issued a final rule 12 (SA–CCR final rule) 

that amends the regulatory capital rule 

to implement a new approach for 

calculating the exposure amount for 

derivative contracts for purposes of 

calculating the total risk-weighted assets 

(RWA), which is called SA–CCR. The 

final rule also incorporates SA–CCR into 

the determination of the exposure 

amount of derivatives for total leverage 

exposure under the supplementary 

leverage ratio, and the cleared 

transaction framework under the capital 

rule. 

Banking institutions that are not 

advanced approaches institutions may 

elect to use SA–CCR to calculate 

standardized total RWA by notifying 

their appropriate federal supervisor.13

Advanced approaches institutions are 

required to use SA–CCR to calculate 

standardized total RWA starting on 

January 1, 2022. Advanced approaches 

institutions may adopt SA–CCR prior to 

January 1, 2022, but must notify their 

appropriate federal supervisor of early 

adoption.14

Proposed Change 

The agencies are proposing to revise 

Schedule RC–R, Part I, Regulatory 

Capital Components and Ratios, on all 

versions of the Call Report by adding a 

new line item 31.b, ‘‘Standardized 

Approach for Counterparty Credit Risk 

opt-in election.’’ The agencies are 

proposing to add this new item to 

identify institutions that have chosen to 

early adopt or voluntarily elect SA– 

CCR, which would allow for enhanced 

comparability of the reported derivative 

data and for better supervision of the 

implementation of the framework at 

these institutions. Due to the inherent 

complexity of adopting SA–CCR, this 

identification is particularly important 

for non-advanced approaches 

institutions that choose to voluntarily 

adopt SA–CCR. 

A non-advanced approaches 

institution that adopts SA–CCR would 

enter ‘‘1’’ for ‘‘Yes’’ in line item 31.b. 

All other non-advanced approaches 

institutions would leave this item blank. 

If a non-advanced approaches 

institution has elected to use SA–CCR, 

the institution may change its election 

only with prior approval of its 

appropriate federal regulator.15 An 

advanced approaches institution that 

elects to early adopt SA–CCR prior to 

the January 1, 2022, mandatory 

compliance date would enter ‘‘1’’ for 

‘‘Yes’’ in line item 31.b. After January 1, 

2022, an advanced approaches 

institution would leave this item blank. 

This proposed reporting change would 

take effect starting with the December 

31, 2021, Call Report. This item would 

no longer be applicable to advanced 

approaches institutions starting with the 

March 31, 2022, report date. 

III. Request for Comment 

Public comment is requested on all 

aspects of this joint notice. Comment is 

specifically invited on: 

(a) Whether the proposed revisions to 

the collections of information that are 

the subject of this notice are necessary 

for the proper performance of the 

agencies’ functions, including whether 

the information has practical utility; 

(b) The accuracy of the agencies’ 

estimates of the burden of the 

information collections as they are 

proposed to be revised, including the 

validity of the methodology and 

assumptions used; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

information collections on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology; and 

(e) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

Comments submitted in response to 

this joint notice will be shared among 

the agencies. 

Theodore J. Dowd, 

Deputy Chief Counsel, Office of the 

Comptroller of the Currency. 

Board of Governors of the Federal Reserve 

System. 

Michelle Taylor Fennell, 

Deputy Associate Secretary of the Board. 

Federal Deposit Insurance Corporation. 

Dated at Washington, DC, on July 13, 2021. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2021–15556 Filed 7–21–21; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF THE TREASURY 

Bureau of the Fiscal Service 

Prompt Payment Interest Rate; 

Contract Disputes Act 

AGENCY: Bureau of the Fiscal Service, 

Treasury. 

ACTION: Notice of prompt payment 

interest rate; Contract Disputes Act. 

SUMMARY: For the period beginning July 

1, 2021, and ending on December 31, 

2021, the prompt payment interest rate 

is 11⁄8 per centum per annum. 

DATES: Effective July 1, 2021, to 

December 31, 2021. 

ADDRESSES: Comments or inquiries may 

be mailed to: E-Commerce Division, 

Bureau of the Fiscal Service, 401 14th 

Street SW, Room 306F, Washington, DC 

20227. Comments or inquiries may also 

be emailed to PromptPayment@

fiscal.treasury.gov. 

FOR FURTHER INFORMATION CONTACT: 

Thomas M. Burnum, E-Commerce 

Division, (202) 874–6430; or Thomas 

Kearns, Senior Counsel, Office of the 

Chief Counsel, (202) 874–7036. 

SUPPLEMENTARY INFORMATION: An agency 

that has acquired property or service 

from a business concern and has failed 

to pay for the complete delivery of 

property or service by the required 

payment date shall pay the business 

concern an interest penalty. 31 U.S.C. 

3902(a). The Contract Disputes Act of 

1978, Sec. 12, Public Law 95–563, 92 

Stat. 2389, and the Prompt Payment Act, 

31 U.S.C. 3902(a), provide for the 

calculation of interest due on claims at 

the rate established by the Secretary of 

the Treasury. 

The Secretary of the Treasury has the 

authority to specify the rate by which 

the interest shall be computed for 

interest payments under section 12 of 

the Contract Disputes Act of 1978 and 


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38814 Federal Register / Vol. 86, No. 138 / Thursday, July 22, 2021 / Notices 

under the Prompt Payment Act. Under 

the Prompt Payment Act, if an interest 

penalty is owed to a business concern, 

the penalty shall be paid regardless of 

whether the business concern requested 

payment of such penalty. 31 U.S.C. 

3902(c)(1). Agencies must pay the 

interest penalty calculated with the 

interest rate, which is in effect at the 

time the agency accrues the obligation 

to pay a late payment interest penalty. 

31 U.S.C. 3902(a). ‘‘The interest penalty 

shall be paid for the period beginning 

on the day after the required payment 

date and ending on the date on which 

payment is made.’’ 31 U.S.C. 3902(b). 

Therefore, notice is given that the 

Secretary of the Treasury has 

determined that the rate of interest 

applicable for the period beginning July 

1, 2021, and ending on December 31, 

2021, is 11⁄8 per centum per annum. 

Matthew J. Miller, 

Acting Commissioner, Bureau of the Fiscal 

Service. 

[FR Doc. 2021–15613 Filed 7–21–21; 8:45 am] 

BILLING CODE 4810–AS–P 


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