[Federal Register Volume 88, Number 247 (Wednesday, December 27, 2023)]
[Notices]
[Pages 89489-89495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28473]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Proposed Agency Information Collection Activities; Comment 
Request

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

ACTION: Joint notice and request for comment.

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SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) 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 (Non-U.S.) Bank 
(FFIEC 002S), which are also currently approved collections of 
information. The agencies are requesting comment on proposed revisions 
to the Call Report forms and instructions, and the FFIEC 002, as 
applicable, that include the revision and addition of certain new data 
items related to the reporting on loans to nondepository financial 
institutions (NDFIs) and other loans, guaranteed structured financial 
products, and proposed long-term debt requirements. In addition, the 
agencies are seeking comment on a proposal to adopt ongoing standards 
for electronic signatures to comply with the Call Report signature and 
attestation requirement. The revisions are proposed to take effect with 
the June 30, 2024, report date, except for those related to the 
proposed long-term debt requirements which would take effect for the 
first report date at or following the effective date of any final rule.

DATES: Comments must be submitted on or before February 26, 2024.

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, which should refer to ``Call Report 
and FFIEC 002 Revisions,'' by any of the following methods:
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#7b0b091a12151d143b141818550f091e1a08551c140d"><span class="__cf_email__" data-cfemail="8afaf8ebe3e4ece5cae5e9e9a4fef8efebf9a4ede5fc">[email protected]</span></a>.
    <bullet> 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.
    <bullet> Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
    <bullet> Fax: (571) 293-4835.
    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:
    <bullet> Viewing Comments Electronically: Go to www.reginfo.gov. 
Hover over the ``Information Collection Review'' tab and click on 
``Information Collection Review'' from the drop-down menu. From the 
``Currently under Review'' drop-down menu, select ``Department of 
Treasury'' and then click ``submit.'' This information collection can 
be located by searching 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.
    <bullet> 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:
    <bullet> Agency Website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#d9abbcbeaaf7bab6b4b4bcb7adaa99bfbcbdbcabb8b5abbcaabcabafbcf7beb6af"><span class="__cf_email__" data-cfemail="15677072663b767a7878707b61665573707170677479677066706763703b727a63">[email protected]</span></a>. Include ``Call 
Report and FFIEC 002 Revisions'' in the subject line of the message.
    <bullet> Fax: (202) 395-6974.
    <bullet> 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.

[[Page 89490]]

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:
    <bullet> Agency Website: https://www.fdic.gov/resources/regulations/federal-register-publications/. Follow the instructions for 
submitting comments on the FDIC's website.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#4e2d2123232b203a3d0e080a070d60292138"><span class="__cf_email__" data-cfemail="781b1715151d160c0b383e3c313b561f170e">[email protected]</span></a>. Include ``Call Report and FFIEC 
002 Revisions'' in the subject line of the message.
    <bullet> Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
    <bullet> 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.
    <bullet> Public Inspection: All comments received, including any 
personal information provided, will be posted without change to https://www.fdic.gov/resources/regulations/federal-register-publications/. 
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 
<a href="/cdn-cgi/l/email-protection#0f60667d6e507c7a6d62667c7c6660614f60626d216a607f21686079"><span class="__cf_email__" data-cfemail="94fbfde6f5cbe7e1f6f9fde7e7fdfbfad4fbf9f6baf1fbe4baf3fbe2">[email protected]</span></a>.

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 and 
the FFIEC 002 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 for-profit.
    Type of Review: Revision and extension of currently approved 
collections.
OCC
    OMB Control No.: 1557-0081.
    Estimated Number of Respondents: 1,014 national banks and federal 
savings associations.
    Estimated Average Burden per Response: 40.85 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 165,688 burden hours to file.
Board
    OMB Control No.: 7100-0036.
    Estimated Number of Respondents: 708 state member banks.
    Estimated Average Burden per Response: 44.33 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 125,543 burden hours to file.
FDIC
    OMB Control No.: 3064-0052.
    Estimated Number of Respondents: 2,975 insured state nonmember 
banks and state savings associations.
    Estimated Average Burden per Response: 38.94 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 463,386 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 
85.88 (FFIEC 031), 54.79 (FFIEC 041), and 34.49 (FFIEC 051). The 
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 031 of 1.35 hours, FFIEC 041 of 0.19 hours, and 
FFIEC 051 of 0.08 hours. 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.
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    \1\ www.ffiec.gov/forms031.htm; www.ffiec.gov/forms041.htm; 
www.ffiec.gov/forms051.htm.
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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.

[[Page 89491]]

    Banks and savings associations submit Call Report data to the 
agencies each quarter for the agencies' use in monitoring the 
condition, performance, and risk profile of individual institutions and 
the industry as a whole. Call Report data serve a regulatory or public 
policy purpose by assisting the agencies in fulfilling their shared 
missions of ensuring the safety and soundness of financial institutions 
and the financial system and protecting consumer financial rights, as 
well as agency-specific missions affecting federal and state-chartered 
institutions, such as conducting monetary policy, ensuring financial 
stability, and administering federal deposit insurance. Call Reports 
are the source of the most current statistical data available for 
identifying areas of focus for on-site and off-site examinations. Among 
other purposes, the agencies use Call Report data in evaluating 
institutions' corporate applications, including interstate merger and 
acquisition applications for which the agencies are required by law to 
determine whether the resulting institution would control more than 10 
percent of the total amount of deposits of insured depository 
institutions in the United States. Call Report data also are used to 
calculate the risk-based assessments for insured depository 
institutions.

B. FFIEC 002 and 002S

    The Board proposes to extend for three years, with revision, the 
FFIEC 002 and FFIEC 002S reports.
    Report Titles: Report of Assets and Liabilities of U.S. Branches 
and Agencies of Foreign Banks; Report of Assets and Liabilities of a 
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or 
Agency of a Foreign (Non-U.S.) Bank.
    Form Numbers: FFIEC 002; FFIEC 002S.
    OMB Control Number: 7100-0032.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Respondents: All state-chartered or federally-licensed U.S. 
branches and agencies of foreign banking organizations, and all non-
U.S. branches managed or controlled by a U.S. branch or agency of a 
foreign banking organization.
    Estimated Number of Respondents: FFIEC 002--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. Loans to Nondepository Financial Institutions

1. Background
    Loans to NDFIs have increasingly played an essential role in the 
financial system. NDFIs include a wide range of counterparties 
including insurance companies, mortgage companies, private equity 
funds, hedge funds, broker-dealers, real estate investment trusts 
(REITs), marketplace lenders, special purpose entities, and other 
financial vehicles. Currently, data on loans to NDFIs is collected on 
Schedule RC-C, Part I, Loans and Leases, item 9.a. ``Loans to 
nondepository financial institutions.''
    Since this item was added in 2010, institutions have increased 
direct lending exposure to NDFIs. In March 2010, loans to NDFIs 
reported in this item totaled approximately $56 billion and represented 
only 0.8 percent of gross loans reported by respondents. However, in 
June 2023, the reported amount of loans to NDFIs increased 
significantly to almost $786 billion and represented 6.4 percent of 
respondents' total loan exposure. Notwithstanding this increase in NDFI 
credit risk, current Call Report forms and instructions do not provide 
granularity on specific NDFI exposure, such as direct and off-balance 
sheet exposure, data on NDFI exposure in non-domestic offices, or NDFI 
loan performance data (e.g., nonaccrual and past due status). Further, 
the agencies have observed inconsistency in NDFI exposure reporting 
among industry filers.
2. Call Report Proposed Revisions
    The agencies are proposing to update the Call Report forms and 
instructions to increase the granularity in reporting exposure to NDFIs 
and to improve reporting consistency. These proposed revisions would 
enhance the understanding of NDFI exposure, risks, and performance 
trends. The revisions would group together loan exposures that exhibit 
similar underlying risk characteristics while addressing the diversity 
in practice on the reporting of these loans that exists today. In 
addition, the proposed granular reporting would allow for more accurate 
analysis of bank financial statements for applicable institutions and 
performance metrics. These revisions and clarifications are proposed to 
be effective as of the June 30, 2024, report date.
    The specific proposed revisions and clarifications impacting the 
three report forms are as follows:

[[Page 89492]]

Schedule RC-C, Part I, Loans and Leases
    [ssquf] For all three Call Reports, to ensure consistent reporting 
on loans to NDFIs, the instructions for item 9.a, ``Loans to 
nondepository financial institutions'' would be updated to include 
additional detail on the types of loans that should be reported in this 
line item. In addition, the instructions would be revised to include in 
the amounts reported in this item all loans to brokers and dealers in 
securities and loans to investment firms and mutual funds. These loans 
were previously included in item 9.b (FFIEC 051) or in item 9.b.(1) 
(FFIEC 031 and FFIEC 041), as noted below.
    [ssquf] On the FFIEC 051, item 9.b, ``Other loans,'' and on the 
FFIEC 031 and FFIEC 041, item 9.b.(1), ``Loans for purchasing or 
carrying securities (secured and unsecured),'' the instructions would 
be revised to exclude from the amounts reported in this item all loans 
to brokers and dealers in securities and loans to investment firms and 
mutual funds. These loans would be reported under the new NDFI 
definition in item 9.a, ``Loans to nondepository financial 
institutions.''
    [ssquf] On the FFIEC 051, item 9.b, ``Other loans,'' and on the 
FFIEC 031 and FFIEC 041 reports, item 9.b.(1), ``Loans for purchasing 
or carrying securities (secured and unsecured),'' the instructions 
would also be revised to include in the amounts reported in this item 
all margin loans, including securities-based loans and non-purpose 
margin loans. In addition, this item description on the FFIEC 031 and 
FFIEC 041 report forms would be revised to ``Loans for purchasing or 
carrying securities, including margin loans.''
    [ssquf] For the FFIEC 031 and FFIEC 041, Memorandum item 10 
(currently ``not applicable'') would be renamed ``Loans to 
nondepository financial institutions'' and would include the following 
subitems, as defined in the instructions for Schedule RC-C, Part I, 
item 9.a, to capture direct lending exposures to NDFIs: 10.a, ``Loans 
to mortgage credit intermediaries;'' 10.b, ``Loans to business credit 
intermediaries;'' 10.c, ``Loans to private equity funds;'' 10.d, 
``Loans to consumer credit intermediaries;'' and 10.e, ``Other loans to 
nondepository financial institutions.'' The sum of subitems 10.a 
through 10.e would equal Schedule RC-C, Part I, item 9.a. These items 
would only be collected from institutions with $10 billion or more in 
total assets.
    [ssquf] For the FFIEC 031 only, item 9, ``Loans to nondepository 
financial institutions and other loans,'' additional subitems 9.a, 
9.b.1, and 9.b.2 (Column A) would be added to collect data at the 
consolidated bank level that would be in addition to the exposure 
currently captured for those items in domestic offices only (Column B). 
In addition, item 9, ``Loans to nondepository financial institutions 
and other loans,'' column A, would no longer be reported as an 
aggregate amount.
Schedule RC-L, ``Derivatives and Off-Balance Sheet Items''
    [ssquf] For all three report forms, the subitems for item 1.e, 
``Other unused commitments'' would be revised to include the collection 
of data on both depository financial institutions and NDFIs. 
Specifically, subitem 1.e.(2), ``Loans to financial institutions'' 
would be changed to ``Loans to depository financial institutions.'' 
Subitem 1.e.(3), would be renamed ``Loans to nondepository financial 
institutions'' and would collect data on unused commitments for loans 
to nondepository financial institutions. The existing subitem 1.e.(3), 
``All other unused commitments,'' would be renumbered to item 1.e.(4).
    [ssquf] For the FFIEC 031 and FFIEC 041, item 1.e.(3), ``Loans to 
nondepository financial institutions,'' would include five subitems 
with the same five categories as the new subitems listed for Schedule 
RC-C, Part I, Memorandum item 10 above. The sum of these subitems 
1.e.(3)(a) through 1.e.(3)(e) would equal the amount reported in 
Schedule RC-L, item 1.e.(3). These items would only be collected from 
institutions with $10 billion or more in total assets.
Schedule RC-N, ``Past Due and Nonaccrual Loans, Leases, and Other 
Assets''
    [ssquf] For the FFIEC 041 and the FFIEC 051, Memorandum item 9 
would be renamed, ``Loans to nondepository financial institutions 
included in Schedule RC-N, item 7'' and would capture past due and 
nonaccrual information for NDFIs in columns A through C.
    [ssquf] For the FFIEC 031 only, Memorandum item 9, would also be 
renamed, ``Loans to nondepository financial institutions included in 
Schedule RC-N, item 7'' to capture past due and nonaccrual information 
for NDFIs. However, institutions would report amounts in Memorandum 
item 9.a, ``To U.S. nondepository financial institutions'' and 
Memorandum item 9.b, ``To foreign nondepository institutions'' in 
columns A through C.
    Question 1: Is the granularity of the proposed subcategories 
appropriate or are there additional or fewer subcategories that should 
be considered?
3. FFIEC 002 Proposed Revisions
    The Board's proposed revisions to the FFIEC 002 are intended to 
align with similar changes proposed to the Call Report, Schedule RC-C, 
Part I, as applicable, and discussed in the prior section.
Schedule C, ``Loans''
    [ssquf] The instructions for item 3, ``Loans to other financial 
institutions'' would be updated to include additional detail on the 
types of loans that should be reported in this line item. In addition, 
the instructions would be revised to include all loans to brokers and 
dealers in securities and loans to investment firms and mutual funds in 
the amounts reported in this item. These loans were previously included 
in item 7, below.
    [ssquf] The instructions for item 7, ``Loans for purchasing or 
carrying securities (secured and unsecured)'' would be revised to 
exclude from the amounts reported in this item all loans to brokers and 
dealers in securities and loans to investment firms and mutual funds. 
These loans would be reported under the new NDFI definition in item 3, 
``Loans to other financial institutions.''
    [ssquf] The instructions for item 7, ``Loans for purchasing or 
carrying securities (secured and unsecured)'' would also be revised to 
include in the amounts reported in this item all margin loans, 
including securities-based loans and non-purpose margin loans. In 
addition, this item description on the report form would be revised to 
``Loans for purchasing or carrying securities, including margin 
loans.''
    The Board is proposing to align the effective date for these 
revisions on Schedule C of the FFIEC 002 with the revised Call Report 
items, described above.

B. Reporting on Guaranteed Structured Financial Products

    In February 2023, a proposal for revisions to the Call Reports \2\ 
included a question on the reporting of certain Federal Home Loan 
Mortgage Corporation and similar securitization structures that have 
government guarantees on Schedule RC-B, Securities. The agencies sought 
comment on the reporting of these types of structured financial 
products including those issued or guaranteed by U.S. government or 
government sponsored agencies.
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    \2\ 85 FR 10644 (February 21, 2023).
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    The agencies received two comments on this topic. One comment 
opposed

[[Page 89493]]

reporting these securities in Schedule RC-B, Securities, item 5.b, 
noting that this item includes a broad range of structured financial 
products, and there would be a lack of clarity on the amount reported 
in this item that is guaranteed by a government or agency. The other 
comment supported reporting these securities in item 5.b. However, the 
commenter also noted the lack of transparency in this item regarding 
the composition of reported structured financial products. The 
commenter stated it would be appropriate for an additional breakdown to 
be added to item 5.b to report the amount that is guaranteed by the 
U.S. government or an agency. In the final 30-day notice published in 
June 2023,\3\ the agencies indicated they would continue reviewing the 
original clarification and the new item proposed by the commenter.
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    \3\ 88 FR 38592 (June 13, 2023).
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    After further review of the comment to collect data on the amounts 
reported in item 5.b that are guaranteed by U.S. government agencies or 
sponsored agencies, the agencies are proposing to add a new Memorandum 
item 7, ``Guaranteed by U.S. Government agencies or sponsored agencies 
included in Schedule RC-B, item 5.b'', columns A through D, on Schedule 
RC-B. The proposed amounts in the new Memorandum item would collect the 
total amortized cost and total fair value for held-to-maturity 
securities and available-for-sale securities.

C. Long-Term Debt

    On August 29, 2023, the federal bank regulatory agencies requested 
comment on a proposal that would require large banks with total assets 
of $100 billion or more to maintain a layer of long-term debt, which 
would improve financial stability by increasing the resolvability and 
resiliency of such institutions. This notice of proposed rulemaking 
(NPR) was published in the Federal Register on September 19, 2023.\4\ 
This NPR would affect insured depository institutions (IDIs) that are 
not consolidated subsidiaries of U.S. global systemically important 
banks (G-SIBs) and that (i) have at least $100 billion in consolidated 
assets or (ii) are affiliated with IDIs that have $100 billion in 
consolidated assets (covered IDIs) that are required to have 
outstanding a minimum amount of eligible long-term debt (LTD). 
Generally, under the proposal, covered IDIs that are consolidated 
subsidiaries of covered bank holding companies and savings and loan 
holding companies would be required to issue the LTD.
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    \4\ 88 FR 64524 (September 19, 2023).
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    The agencies are proposing to revise Schedule RC-R, Part I, 
Regulatory Capital Components and Ratios, for all three Call Reports by 
adding the following new line items under the heading ``Long-Term Debt 
(LTD).'' These new line items would be applicable only to IDIs subject 
to the long-term debt requirement in the NPR:
    [ssquf] 56.a, ``Effective date of LTD requirement;''
    [ssquf] 56.b, ``Outstanding eligible LTD;''
    [ssquf] 56.c, ``Outstanding eligible LTD with a remaining maturity 
greater than or equal to one year and less than two years;''
    [ssquf] 56.d, ``LTD total risk-weighted assets ratio;'' and
    [ssquf] 56.e, ``LTD leverage ratio.''
    Additionally, on the FFIEC 031 and FFIEC 041 forms only, the 
agencies will add a sixth item, 56.f, ``LTD supplementary leverage 
ratio.''
    The agencies are proposing to add these new items to monitor 
compliance by covered IDIs with the applicable proposed LTD 
requirements. These items would be consistent with similar items 
reported by holding companies on the Board's Consolidated Financial 
Statements for Holding Companies (FR Y-9C), Schedule HC-R, Part I, 
Regulatory Capital Components and Ratios. For example, item 56.b, 
``Outstanding eligible LTD,'' on the Call Report would capture the same 
long-term debt information as item 54, ``Outstanding eligible long-term 
debt,'' on the FR Y-9C, except it would apply to covered IDIs instead 
of holding companies. The proposed instructions for items 56.a through 
56.f would correspond with the relevant items on the FR Y-9C as 
proposed in the NPR that was published on September 19, 2023. Similar 
to the FR Y-9C, the proposed effective date for the Call Report 
revisions would align with the effective date of any final rule on LTD 
requirements, and the reporting changes would take effect for the first 
report date on or after that effective date.

D. Electronic Signatures

Background
    Federal law requires that certain personnel and directors attest to 
the accuracy of the data submitted in the bank's Call Report by 
signature.\5\ In addition to being required by statute, review of the 
Call Report in connection with signing the attestation supports 
internal control over the bank's reporting. The Call Report 
instructions permit a bank to satisfy the signature requirement by 
obtaining physical signatures from the relevant parties attached to a 
copy of the associated Call Report that is retained in the bank's 
files.
---------------------------------------------------------------------------

    \5\ 12 U.S.C. 161(a) (national banks) and 1817(a)(3) (all 
insured depository institutions).
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    The onset of the COVID-19 pandemic in March 2020 and resulting bank 
office closures presented challenges to complying with the physical 
signature requirement. The agencies responded by permitting reasonable 
alternative signature methods, including electronic signatures, to be 
used for the duration of the pandemic.\6\
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    \6\ Call Report Supplemental Instructions for March 2020, 
available at: https://www.ffiec.gov/pdf/FFIEC_forms/FFIEC031_FFIEC041_FFIEC051_suppinst_202003.pdf.
---------------------------------------------------------------------------

    The federal COVID-19 public health emergency declaration ended on 
May 11, 2023. However, both the agencies and banks have benefitted from 
the alternative to the use of physical signatures on each Call Report 
submission. For the agencies, electronic documentation can provide a 
stronger audit trail than a paper copy that can be misplaced or 
altered. For banks, electronic signatures can reduce recordkeeping 
burden associated with preparing for, collecting, and retaining 
signatures. Therefore, the agencies are proposing to adopt ongoing 
standards for electronic signatures to comply with the Call Report 
signature and attestation requirement. Until the agencies finalize 
these proposed standards, banks may continue following the alternate 
standards provided in the quarterly Call Report Supplemental 
Instructions. The agencies also will continue to permit physical 
signatures for banks that choose not to use the electronic signature 
alternative.
Proposed Framework
    A valid electronic signature generally must meet the following 
requirements: (1) The signer must use an acceptable electronic form of 
signature; (2) The electronic form of signature must be executed or 
adopted by a person with the intent to sign the electronic record; (3) 
The electronic form of signature must be attached to \7\ or part of the 
electronic record being signed; (4) There must be a means to identify, 
verify, and authenticate a particular person as the signer; and (5) 
There must be a means to preserve the integrity of the signed 
record.\8\ The agencies are proposing the

[[Page 89494]]

electronic signature alternative for the Call Report signature purposes 
consistent with these requirements and Federal law on electronic 
signatures.\9\
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    \7\ In this context, ``attached to'' means ``logically 
associated with.''
    \8\ See ``Use of Electronic Signatures in Federal Organization 
Transactions,'' available at: https://assets.cio.gov/assets/files/resources/Use_of_ESignatures_in_Federal_Agency_Transactions_v1-0_20130125.pdf.
    \9\ See, e.g., Electronic Records and Signatures in Global and 
National Commerce Act, Pub. L. 106-229; Government Paperwork 
Elimination Act of 1998, Pub. L. 105-277.
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1. Form of Signature
    The agencies are proposing to allow the following forms of 
signature: an image of the signer's physical signature; or application 
of an electronic signature, such as by clicking a box or entering a 
personal identification number (PIN). These forms of signature are 
widely available in current software products, are used by many banks 
that permit electronic signatures on loans or other agreements with 
customers and have been used by banks under the alternatives permitted 
for the Call Report since March 2020. While other forms of signature 
exist, such as biometric identification (e.g., voiceprint, fingerprint, 
retinal scan), these would not be suitable for the Call Report given 
cost, complexity, and associated privacy issues involved in recording 
and maintaining signatures in these forms.
2. Intent to Sign
    In order to be a valid electronic signature, the signature of the 
appropriate bank officer or director must be applied by the officer or 
director with the intent to sign and in the appropriate capacity. For 
the Call Report, this means the appropriate bank officer (typically the 
chief financial officer) or director intends to sign the Call Report as 
the attestation that it is prepared in accordance with the instructions 
and is true and correct, as stated on the signature page of the Call 
Report. The bank officer's or director's intent and capacity must be 
included as part of the electronic signature process by using an 
electronic version of the relevant attestation text on the Call Report 
signature page.
3. Association of Signature
    A valid electronic signature must be made part of the record of the 
document being signed, to confirm that the signature applies to and is 
linked to the entire record. For Call Report purposes, this means the 
signature must be associated with a complete version of the bank's Call 
Report, including all applicable schedules, as the signer is attesting 
to the correctness of the information in those schedules. This 
association can be made by using a process that appends the signature 
data to the record signed, or which establishes a database-type link 
between the signature data and the record signed. An electronic 
signature made on a cover page or the Call Report signature page, 
without the Call Report schedules incorporated or attached, would not 
satisfy this requirement.
    To validate that the bank obtained the signatures prior to filing 
the Call Report, the date of each electronic signature would need to be 
included as part of the signature and attestation process and similarly 
made part of the record. This could be accomplished in different ways, 
for example, by the signer manually entering the date when signing, 
which could be verified by system transaction logs, or by software 
embedding the date as part of the form of signature or elsewhere within 
the record.
4. Identification and Authentication of the Signer
    A valid signature requires proving an association between the 
signature and the person signing. For Call Report purposes, the 
agencies would accept any reliable information technology system 
identification and authentication method or process that associates 
access to and execution of the electronic signature transaction with 
the identity of the signer with a level of assurance sufficient to 
protect against repudiation or adverse impact to the bank that would 
result from a successful challenge to the execution of the electronic 
signature. For example, requiring the bank officer or director to log 
into the bank's network using unique multifactor credentials in order 
to electronically sign the Call Report could identify and authenticate 
the signer with sufficient assurance to protect against such risks. 
Credentials used to access the signature transaction must be sufficient 
for the protection of a bank's non-public or otherwise proprietary 
information.
5. Integrity of Signed Record
    The usability of a signed electronic record requires maintaining 
the integrity of the electronic signature and associated record. A bank 
would need to have sufficient data security and data integrity 
practices to ensure that the Call Report with electronic signature is 
safely stored, readily retrievable, and cannot be lost or altered.\10\ 
As with paper-based signatures, electronic signatures would not be 
submitted to the Central Data Repository along with the Call Report 
data, but the electronically signed Call Report would need to be 
available to agency examiners upon request.
---------------------------------------------------------------------------

    \10\ These practices generally already exist within banks' 
current information technology infrastructure for other bank records 
and customer information.
---------------------------------------------------------------------------

    A Call Report with an electronic signature would be subject to the 
same record retention period as a paper version of the Call Report, as 
specified in the Call Report instructions, and may be deleted after the 
relevant timeframe. Generally, this period is three years after the 
report date, unless state law or a dispute with the FDIC requires a 
longer retention period. A bank that uses electronic signatures for its 
Call Reports would not be required to print or maintain a paper version 
of the submitted Call Report, as the relevant electronic versions of 
the Call Report and signatures would be stored in electronic form.
    Question 2: Are the proposed requirements for Call Report 
electronic signatures appropriate? What additional options should the 
agencies consider allowing or disallowing?
    Question 3: Does the proposed effective date provide sufficient 
time for banks seeking to use electronic signatures to implement the 
proposed standards?
    Question 4: Should the agencies consider expanding the use of 
electronic signatures to other FFIEC reports? If so, would the proposed 
requirements for Call Report electronic signatures be appropriate for 
those reports as well?

III. Timing

    The proposed revisions to the Call Report forms and instructions, 
and the FFIEC 002, as applicable, and adoption of ongoing standards for 
electronic signatures to comply with the Call Report signature and 
attestation requirement are proposed to become effective with the June 
30, 2024, report date, except for those related to the proposed long-
term debt requirements which would take effect for the first report 
date at or following the effective date of any final rule. 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 the FFIEC 002, as 
applicable, 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

[[Page 89495]]

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.

Patrick T. Tierney,
Assistant Director, Bank Advisory Office of the Comptroller of the 
Currency.

    Board of Governors of the Federal Reserve System.

Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
Federal Deposit Insurance Corporation.
    Dated at Washington, DC, on December 14, 2023.

James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2023-28473 Filed 12-26-23; 8:45 am]
BILLING CODE 4810-33-P; BILLING CODE 6210-01-P; BILLING CODE 6714-01-P


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