5618 Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 

statement: ‘‘Comments on PHMSA– 

2015–0003.’’ The Docket Clerk will date 

stamp the postcard prior to returning it 

to you via the U.S. mail. Please note that 

due to delays in the delivery of U.S. 

mail to Federal offices in Washington, 

DC, we recommend that persons 

consider an alternative method 

(internet, fax, or professional delivery 

service) of submitting comments to the 

docket and ensuring their timely receipt 

at DOT. 

Privacy Act Statement: In accordance 

with the Paperwork Reduction Act of 

1995, PHMSA solicits comments from 

the public to better inform its 

information collection process. PHMSA 

posts these comments, without edit, 

including any personal information the 

commenter provides, to 

www.regulations.gov, as described in 

the system of records notice (DOT/ALL– 

14 FDMS), which can be reviewed at 

www.dot.gov/privacy. 

FOR FURTHER INFORMATION CONTACT: 

Cameron Satterthwaite by telephone at 

202–366–1319 or by email at 

cameron.satterthwaite@dot.gov 

SUPPLEMENTARY INFORMATION: Section 

1320.8(d), Title 5, Code of Federal 

Regulations, requires PHMSA to provide 

interested members of the public and 

affected agencies an opportunity to 

comment on information collection and 

recordkeeping requests. This notice 

identifies an information collection 

request PHMSA will submit to OMB for 

renewal. The following information is 

provided for each information 

collection: (1) Title of the information 

collection; (2) OMB control number; (3) 

Current expiration date; (4) Type of 

request; (5) Abstract of the information 

collection activity; (6) Description of 

affected public; (7) Estimate of total 

annual reporting and recordkeeping 

burden; and (8) Frequency of collection. 

PHMSA will request a three-year term of 

approval for each information collection 

activity. PHMSA requests comments on 

the following information collections: 

1. Title: Pipeline Safety: Periodic 

Underwater Inspection and Notification 

of Abandoned Underwater Pipelines. 

OMB Control Number: 2137–0618. 

Current Expiration Date: 8/31/2015. 

Type of Request: Renewal of a 

currently approved information 

collection. 

Abstract: The Federal pipeline safety 

regulations at 49 CFR 192.612 and 

195.413 require operators to conduct 

appropriate periodic underwater 

inspections in the Gulf of Mexico and 

its inlets. If an operator discovers that 

its underwater pipeline is exposed or 

poses a hazard to navigation, among 

other remedial actions such as marking 

and reburial in some cases, the operator 

must contact the National Response 

Center by telephone within 24 hours of 

discovery and report the location of the 

exposed pipeline. 

PHMSA’s regulations for reporting the 

abandonment of underwater pipelines 

can be found at §§ 192.727 and 195.59. 

These provisions contain certain 

requirements for disconnecting and 

purging abandoned pipelines and 

require operators to notify PHMSA of 

each abandoned offshore pipeline 

facility or each abandoned onshore 

pipeline facility that crosses over, under 

or through a commercially navigable 

waterway. 

Affected Public: Operators of pipeline 

facilities (except master meter 

operators). 

Annual Reporting and Recordkeeping 

Burden: 

Estimated number of responses: 92. 

Estimated annual burden hours: 

1,372. 

Frequency of collection: On occasion. 

Comments are invited on: 

(a) The need for the renewal and 

revision of these collections of 

information for the proper performance 

of the functions of the agency, including 

whether the information will have 

practical utility; 

(b) The accuracy of the agency’s 

estimate of the burden of the proposed 

collection of information, including the 

validity of the methodology and 

assumptions used; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; and 

(d) Ways to minimize the burden of 

the collection of information on those 

who are to respond, including the use 

of appropriate automated, electronic, 

mechanical, or other technological 

collection techniques. 

Authority: The Paperwork Reduction Act 

of 1995; 44 U.S.C. Chapter 35, as amended; 

and 49 CFR 1.48. 

Issued in Washington, DC on January 27, 

2015, under authority delegated in 49 CFR 

1.97. 

John A. Gale, 

Director, Office of Standards and 

Rulemaking. 

[FR Doc. 2015–01838 Filed 1–30–15; 8:45 am] 

BILLING CODE 4910–60–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

FEDERAL RESERVE SYSTEM 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

Agency Information Collection 

Activities: Submission for OMB 

Review; Joint Comment Request 

AGENCIES: Office of the Comptroller of 

the Currency (OCC), Treasury; Board of 

Governors of the Federal Reserve 

System (Board); and Federal Deposit 

Insurance Corporation (FDIC). 

ACTION: Notice of information 

collections to be submitted to Office of 

Management and Budget (OMB) for 

review and approval under the 

Paperwork Reduction Act of 1995. 

SUMMARY: In accordance with the 

requirements of the Paperwork 

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

chapter 35), the OCC, the Board, and the 

FDIC (the agencies) may not conduct or 

sponsor, and the respondent is not 

required to respond to, an information 

collection unless it displays a currently 

valid OMB control number. On June 23, 

2014, the agencies, under the auspices 

of the Federal Financial Institutions 

Examination Council (FFIEC), requested 

public comment for 60 days on 

proposed revisions to the risk-weighted 

assets portion of Schedule RC–R, 

Regulatory Capital, and to line items 

related to securities lent and borrowed 

in Schedule RC–L, Derivatives and OffBalance Sheet Items, in the 

Consolidated Reports of Condition and 

Income (Call Report or FFIEC 031 and 

FFIEC 041). The proposed revisions to 

the Call Report are consistent with the 

revised regulatory capital rules 

approved by the agencies in July 2013 

(revised regulatory capital rules). 

After considering the comments 

received on the proposed revisions, the 

FFIEC and the agencies will proceed 

with the proposed reporting revisions 

with some modifications as described in 

sections II, III, and IV of the 

SUPPLEMENTARY INFORMATION section 

below. For all institutions required to 

file the Call Report, the proposed 

revised risk-weighted assets portion of 

Schedule RC–R and the proposed 

changes to Schedule RC–L would take 

effect as of the March 31, 2015, report 

date. 

DATES: Comments must be submitted on 

or before March 4, 2015. 

ADDRESSES: Interested parties are 

invited to submit written comments to 

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Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 5619 

any or all of the agencies. All comments, 

which should refer to the OMB control 

number(s), will be shared among the 

agencies. 

OCC: Commenters are encouraged to 

submit comments by email. Please use 

the title ‘‘FFIEC 031 and 041’’ to 

facilitate the organization and 

distribution of the comments. You may 

submit comments by any of the 

following methods: 

• Email: regs.comments@occ.

treas.gov. 

• Mail: Legislative and Regulatory 

Activities Division, Office of the 

Comptroller of the Currency, 400 7th 

Street SW., Suite 3E–218, Mail Stop 

9W–11, Washington, DC 20219. 

• Hand Delivery/Courier: 400 7th 

Street SW., Suite 3E–218, Mail Stop 

9W–11, Washington, DC 20219. 

• Fax: (571) 465–4326. 

Instructions: You must include 

‘‘OCC’’ as the agency name and ‘‘FFIEC 

031 and 041’’ in your comment. In 

general, OCC will enter all comments 

received into the docket and publish 

them on the Regulations.gov Web site 

without change, including any business 

or personal information that you 

provide 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 

enclose any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

You may personally inspect and 

photocopy comments at the OCC, 400 

7th Street SW., Washington, DC. For 

security reasons, the OCC requires that 

visitors make an appointment to inspect 

comments. You may do so by calling 

(202) 649–6700. Upon arrival, visitors 

will be required to present valid 

government-issued photo identification 

and to submit to security screening in 

order to inspect and photocopy 

comments. 

Board: You may submit comments, 

which should refer to ‘‘FFIEC 031 and 

FFIEC 041,’’ by any of the following 

methods: 

• Agency Web site: http://

www.federalreserve.gov. Follow the 

instructions for submitting comments at: 

http://www.federalreserve.gov/apps/

foia/proposedregs.aspx. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: regs.comments@

federalreserve.gov. Include the reporting 

form numbers in the subject line of the 

message. 

• Fax: (202) 452–3819 or (202) 452– 

3102. 

• Mail: Robert DeV. Frierson, 

Secretary, Board of Governors of the 

Federal Reserve System, 20th Street and 

Constitution Avenue NW., Washington, 

DC 20551. 

All public comments are available 

from the Board’s Web site at http://

www.federalreserve.gov/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. Public comments 

may also be viewed electronically or in 

paper in Room MP–500 of the Board’s 

Martin Building (20th and C Streets 

NW.) between 9:00 a.m. and 5:00 p.m. 

on weekdays. 

FDIC: You may submit comments, 

which should refer to ‘‘FFIEC 031 and 

FFIEC 041,’’ by any of the following 

methods: 

• Agency Web site: http://www.fdic.

gov/regulations/laws/federal/. Follow 

the instructions for submitting 

comments on the FDIC Web site. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: comments@FDIC.gov. 

Include ‘‘FFIEC 031 and FFIEC 041’’ in 

the subject line of the message. 

• Mail: Gary A. Kuiper, Counsel, 

Attn: Comments, Room NYA–5046, 

Federal Deposit Insurance Corporation, 

550 17th Street NW., Washington, DC 

20429. 

• Hand Delivery: Comments may be 

hand delivered to the guard station at 

the rear of the 550 17th Street Building 

(located on F Street) on business days 

between 7:00 a.m. and 5:00 p.m. 

Public Inspection: All comments 

received will be posted without change 

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

federal/ including any personal 

information provided. Paper copies of 

public comments may be requested from 

the FDIC Public Information Center by 

telephone at (877) 275–3342 or (703) 

562–2200. 

Additionally, commenters may send a 

copy of their comments to the OMB 

desk officer for the agencies by mail to 

the Office of Information and Regulatory 

Affairs, U.S. Office of Management and 

Budget, New Executive Office Building, 

Room 10235, 725 17th Street NW., 

Washington, DC 20503; by fax to (202) 

395–6974; or by email to oira_

submission@omb.eop.gov. 

FOR FURTHER INFORMATION CONTACT: For 

further information about the proposed 

revisions to the Call Report discussed in 

this notice, please contact any of the 

agency staff whose names appear below. 

In addition, copies of the revised FFIEC 

031 and FFIEC 041 forms and 

instructions can be obtained at the 

FFIEC’s Web site (http://www.ffiec.gov/ 

ffiec_report_forms.htm). 

OCC: Kevin Korzeniewski, Attorney, 

(202) 649–5490, for persons who are 

deaf or hard of hearing, TTY, (202) 649– 

5597, Legislative and Regulatory 

Activities Division, Office of the 

Comptroller of the Currency, 400 7th 

Street SW., Washington, DC 20219. 

Board: John Schmidt, Federal Reserve 

Board Clearance Officer, (202) 728– 

5859, Division of Research and 

Statistics, Board of Governors of the 

Federal Reserve System, 20th and C 

Streets NW., Washington, DC 20551. 

Telecommunications Device for the Deaf 

(TDD) users may call (202) 263–4869. 

FDIC: Gary A. Kuiper, Counsel, (202) 

898–3877, and John Popeo, Counsel, 

(202) 898–6923, Legal Division, Federal 

Deposit Insurance Corporation, 550 17th 

Street NW., Washington, DC 20429. 

SUPPLEMENTARY INFORMATION: The 

agencies are proposing to revise and 

extend for three years the Call Report, 

which is currently an approved 

collection of information for each 

agency. 

Report Title: Consolidated Reports of 

Condition and Income (Call Report). 

Form Number: FFIEC 031 (for banks 

and savings associations with domestic 

and foreign offices) and FFIEC 041 (for 

banks and savings associations with 

domestic offices only). 

Frequency of Response: Quarterly. 

Affected Public: Business or other forprofit. 

OCC: 

OMB Number: 1557–0081. 

Estimated Number of Respondents: 

1,675 national banks and federal savings 

associations. 

Estimated Time per Response: 59.64 

burden hours per quarter to file. 

Estimated Total Annual Burden: 

399,588 burden hours to file. 

Board: 

OMB Number: 7100–0036. 

Estimated Number of Respondents: 

846 state member banks. 

Estimated Time per Response: 60.07 

burden hours per quarter to file. 

Estimated Total Annual Burden: 

203,277 burden hours to file. 

FDIC: 

OMB Number: 3064–0052. 

Estimated Number of Respondents: 

4,237 insured state nonmember banks 

and state savings associations. 

Estimated Time per Response: 44.74 

burden hours per quarter to file. 

Estimated Total Annual Burden: 

758,254 burden hours to file. 

The estimated time per response for 

the quarterly filings of the Call Report 

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5620 Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 

1See 79 FR 35634. 

2 In addition, one of the commenters on the 

proposal requested the collection of new 

information unrelated to the scope of this proposal. 

3 78 FR 62018 (Oct. 11, 2013) (OCC and Board) 

and 78 FR 55340 (Sept. 10, 2013) (FDIC). 

4FFIEC 101—Regulatory Capital Reporting for 

Institutions Subject to the Advanced Capital 

Adequacy Framework: for the OCC, OMB No. 1557– 

0239; for the Board, OMB No. 7100–0319; and for 

the FDIC, OMB No. 3064–0159. 

is an average that varies by agency 

because of differences in the 

composition of the institutions under 

each agency’s supervision (e.g., size 

distribution of institutions, types of 

activities in which they are engaged, 

and existence of foreign offices). The 

average reporting burden for the filing of 

the Call Report as it is proposed to be 

revised is estimated to range from 20 to 

775 hours per quarter, depending on an 

individual institution’s circumstances. 

General Description of Reports 

The Call Report information 

collections are mandatory for the 

following institutions: 12 U.S.C. 161 

(national banks), 12 U.S.C. 324 (state 

member banks), 12 U.S.C. 1817 (insured 

state nonmember banks), and 12 U.S.C. 

1464 (savings associations). At present, 

except for selected data items, the Call 

Report information collections are not 

given confidential treatment. 

Abstract 

Institutions submit Call Report data to 

the agencies each quarter for the 

agencies’ use in monitoring the 

condition, performance, and risk profile 

of individual institutions and the 

industry as a whole. Call Report data 

provide the most current statistical data 

available for evaluating institutions’ 

corporate applications, identifying areas 

of focus for on-site and off-site 

examinations, and monetary and other 

public policy purposes. The agencies 

use Call Report data in evaluating 

interstate merger and acquisition 

applications to determine, as required 

by law, whether the resulting institution 

would control more than ten percent of 

the total amount of deposits of insured 

depository institutions in the United 

States. Call Report data also are used to 

calculate institutions’ deposit insurance 

and Financing Corporation assessments 

and national banks’ and federal savings 

associations’ semiannual assessment 

fees. 

Current Actions 

I. Summary of the Proposed Revisions 

On June 23, 2014, the agencies 

requested comment on proposed 

revisions to the risk-weighted assets 

portion of Schedule RC–R, and to line 

items related to securities lent and 

borrowed in Schedule RC–L, in the Call 

Report (the proposal).1 The revisions 

would become effective for the March 

31, 2015, report date. 

The agencies collectively received 

comments on the proposal from three 

entities: One banking organization, one 

consulting firm, and one U.S. 

government agency. In addition, the 

Board received comments from three 

entities—two banking organizations and 

one bankers’ association—on proposed 

revisions to the reporting of riskweighted assets in Schedule HC–R of 

the Consolidated Financial Statements 

for Holding Companies (FR Y–9C; OMB 

No. 7100–0128). In this instance, the 

agencies considered the comments on 

the proposed revisions to the FR Y–9C 

because they parallel the proposed 

revisions to the Call Report. 

Collectively, the commenters asked for 

(1) clarification on the applicability of 

the proposed reporting requirements, (2) 

additional new items, (3) combining two 

items, (4) opening certain risk-weight 

categories for some items, and (5) 

clarification of or additional 

instructions for certain line items.2

One commenter noted that in several 

places the proposed reporting 

instructions refer the reader to the 

agencies’ regulatory capital rules for 

additional information.3 The commenter 

requested that the agencies incorporate 

the information from the regulatory 

capital rules into the reporting 

instructions. The agencies believe that 

adding such text to the reporting 

instructions will unduly add significant 

length to the instructions, and do not 

believe it is necessary to incorporate the 

complete text of the agencies’ regulatory 

capital rules into the reporting 

instructions. However, the agencies will 

revise the proposed reporting 

instructions to more clearly crossreference the regulatory capital rules. 

One commenter requested the 

addition of a separate line item for total 

equity exposures, while another 

commenter requested the addition of a 

three-way breakout of equity exposures 

to investment funds similar to that 

found in the Regulatory Capital 

Reporting for Institutions Subject to the 

Advanced Capital Adequacy Framework 

(FFIEC 101).4 The FFIEC 101 requires 

institutions to report equity exposures 

to investment funds by the methodology 

used to risk weight these exposures. The 

agencies do not believe it is necessary 

to add line items for reporting equity 

exposures by risk-weighting 

methodology to the Call Report. 

Furthermore, the agencies will not 

import into the Call Report the equity 

exposure reporting template found in 

the FFIEC 101 because this would add 

complexity and burden for smaller 

institutions that complete the Call 

Report. However, because of the 

approaches available for risk weighting 

investments in investment funds 

(including mutual funds), the agencies 

will add data items for reporting the 

exposure amount and risk-weighted 

asset amount of such investments to the 

appropriate balance sheet asset 

categories. The agencies also will 

include more detailed guidance related 

to equity exposure reporting in the final 

instructions for Schedule RC–R, Part II. 

Comments received on specific line 

items in Schedule RC–R, Part II, and 

Schedule RC–L, are addressed in 

sections II and IV below. 

II. Proposed Revised Call Report 

Schedule RC–R, Part II 

The agencies proposed to revise the 

reporting requirements for the riskweighted assets portion of Call Report 

Schedule RC–R, Regulatory Capital, by 

incorporating the standardized 

approach, consistent with the revised 

regulatory capital rules. Compared to 

the current schedule, the proposed riskweighted assets portion of Schedule 

RC–R would provide a more detailed 

breakdown of on-balance sheet asset 

and off-balance sheet item categories, 

remove the ratings-based approach from 

the calculation of risk-weighted assets, 

reflect reporting of alternative riskweighting approaches not reliant on 

credit ratings, and include an expanded 

number of risk-weight categories, 

consistent with the revised regulatory 

capital rules. As originally proposed, 

Schedule RC–R, Part II, Risk-Weighted 

Assets, would be divided into the 

following sections: (A) On-balance sheet 

asset categories and securitization 

exposures; (B) derivatives and offbalance sheet items; (C) totals; and (D) 

memoranda items for derivatives. 

A brief description of each of these 

sections and the corresponding line 

items and the comments received on 

specific line items in Schedule RC–R, 

Part II, are provided below. 

A. Schedule RC–R, Part II, Items 1–11: 

Balance Sheet Asset Categories and 

Securitization Exposures 

Proposed line items 1 through 8 

reflect on-balance sheet asset categories 

(excluding those assets within each 

category that meet the definition of a 

securitization exposure), similar to the 

asset categories included in the current 

version of Schedule RC–R, but the 

proposed items would capture greater 

reporting detail. The number of riskweight categories to which the 

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Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 5621 

5The agencies will add a similar clarification to 

the proposed reporting form regarding derivatives 

and off-balance sheet items that are securitization 

exposures by explicitly stating that institutions 

should exclude them from items 12 through 21 and 

report them in item 10. 

individual assets in each asset category 

would be allocated would be expanded 

consistent with the revised regulatory 

capital rules. On-balance sheet assets 

and off-balance sheet items that meet 

the definition of a securitization 

exposure would be reported in items 9 

and 10, respectively. 

Two commenters noted that several 

risk-weight categories for item 8, ‘‘Other 

assets,’’ on the proposed reporting form 

are not available for data input (i.e., the 

categories are shaded out), but the 

commenters stated the categories may 

be applicable, particularly to address 

the exposures underlying separate 

account bank-owned life insurance 

(BOLI) assets. The agencies agree with 

these comments and, because of the 

risk-weighting approaches that can be 

applied to separate account BOLI assets, 

will provide new data items for the 

exposure amount and risk-weighted 

asset amount of these BOLI assets, 

which would be reported separately 

from the other risk weightings within 

item 8, ‘‘Other assets.’’ In addition, the 

agencies will allow data input in the 

150 percent and 300 percent risk-weight 

categories for item 8, ‘‘Other assets.’’ 

One commenter requested 

clarification of the reporting in item 8 of 

default fund contributions (DFCs) made 

by the reporting institution to qualifying 

central counterparties (QCCPs). The 

commenter noted that the proposed 

reporting instructions for item 8 state 

that such contributions should be 

allocated to the risk-weight categories 

defined for column B through column 

Q. However, the commenter observed 

that DFCs to QCCPs are subject to two 

alternative methodologies (Methods 1 

and 2) for calculating risk-weighted 

assets, one of which may result in risk 

weightings not captured in column B 

through column Q. 

In response to this comment, the 

agencies will provide new data items for 

the exposure amount and risk-weighted 

asset amount of DFCs to QCCPs, which 

would be reported separately from the 

risk weightings otherwise captured in 

item 8. The instructions would describe 

how to use these data items to report 

DFCs under Method 1 as well as Method 

2. 

One commenter noted that items 2 

through 8 could include securitization 

exposures, and when added with item 9, 

‘‘On-balance sheet securitization 

exposures,’’ would double count such 

exposures in reporting item 11, ‘‘Total 

assets.’’ The agencies note that the 

reporting instructions for each proposed 

balance sheet asset category (items 1 

through 8) explicitly state that the 

reporting institution is to exclude 

securitization exposures. Nevertheless, 

the agencies will clarify the proposed 

reporting form by adding guidance 

explicitly stating that institutions 

should exclude securitization exposures 

from items 2 through 8 and report them 

in item 9.5

Although the proposed report form 

and instructions addressed the reporting 

of an institution’s securitization 

exposures and the treatment of financial 

collateral, the agencies noted during 

their review of the proposal that it did 

not clearly address the risk weighting 

and reporting of assets and certain other 

items secured by financial collateral in 

the form of securitization exposures or 

mutual funds, nor did it fully address 

the two approaches for recognizing the 

effects of qualifying financial collateral. 

The approaches for risk weighting 

securitization exposures and 

investments in mutual funds also are 

applicable to such exposures when they 

serve as financial collateral. To 

accommodate the possible risk weight 

outcomes when exposures are secured 

by these types of collateral, the agencies 

will include data items in new columns 

R and S for reporting the exposure 

amount and risk-weighted asset amount 

of these collateralized exposures 

separately from the other risk 

weightings within appropriate balance 

sheet asset categories (and derivative 

and off-balance sheet item categories). 

B. Schedule RC–R, Part II, Items 12–22: 

Derivatives, Off-Balance Sheet Items, 

and Other Items Subject To Risk 

Weighting 

Proposed line items 12 through 22 

pertain to the reporting of derivatives, 

off-balance sheet items, and other items 

subject to risk weighting, excluding 

those that meet the definition of a 

securitization exposure (which are 

reported in item 10 as discussed above). 

One commenter noted that in 

accordance with section 37 of the 

agencies’ revised regulatory capital 

rules, banking organizations must 

calculate the exposure amount and riskweighted assets for repo-style 

transactions on a netting set basis. A 

netting set may contain transactions that 

are reported as assets, liabilities, and 

off-balance sheet items (as long as they 

are executed under the same master 

netting agreement), and the basis for the 

risk-weighted assets calculation is the 

net exposure, adjusted for volatility and 

foreign exchange haircuts. As proposed, 

Schedule RC–R, Part II, would have 

split the reporting of repo-style 

transactions between assets (reported in 

item 3, ‘‘Federal funds sold and 

securities purchased under agreements 

to resell,’’ i.e., reverse repos) and 

liabilities and off-balance sheet items 

(reported in item 16, ‘‘Repo-style 

transactions (excluding reverse repos)’’). 

However, since risk-weighted assets for 

repo-style transactions are based on the 

net exposure at a netting set level 

(inclusive of volatility and foreign 

exchange haircuts), the proposal’s 

method for allocating repo-style 

transaction exposures between two 

reporting items and across the riskweight categories in a way that would 

tie back to the amounts required to be 

reported in column A of Schedule RC– 

R, Part II (i.e., for item 3, the balance 

sheet carrying amount, and for item 16, 

the notional value), does not align with 

the treatment of repo-style transactions 

under the revised regulatory capital 

rules. The commenter recommended 

that the agencies amend the reporting 

form to collect all repo-style 

transactions in a single item, and 

amounts attributed to risk-weighting 

categories for this item would tie to an 

‘‘exposure’’ amount reported in Column 

A. 

The agencies agree with this comment 

and will revise the proposed item 16 of 

Schedule RC–R, Part II, to include all 

repo-style transactions in a retitled item 

16, ‘‘Repo-style transactions,’’ which 

will now also include securities 

purchased under agreements to resell 

(reverse repos) in order for institutions 

to calculate their exposure based on 

master netting set agreements. In 

addition, consistent with the Call Report 

balance sheet (Schedule RC), proposed 

item 3 of Schedule RC–R, Part II, will be 

split into item 3.a, ‘‘Federal funds sold 

(in domestic offices),’’ and item 3.b, 

‘‘Securities purchased under agreements 

to resell.’’ However, after an institution 

reports the balance sheet carrying 

amount of its reverse repos in column 

A of item 3.b, it would report this same 

amount as an adjustment in column B 

of item 3.b, resulting in no allocation of 

the balance sheet carrying amount of 

reverse repos across the risk-weight 

categories in item 3. This reporting 

methodology will ensure that the sum of 

the balance sheet asset amounts 

reported in items 1 through 9, column 

A, of Schedule RC–R, Part II, that an 

institution will report in item 11 of 

Schedule RC–R, Part II, will continue to 

equal the ‘‘Total assets’’ reported in item 

12 of the Call Report balance sheet 

(Schedule RC). 

Another commenter noted that, under 

the agencies’ revised regulatory capital 

rules, a banking organization is required 

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5622 Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 

to hold risk-based capital against all 

repo-style transactions, regardless of 

whether the transactions generate onbalance sheet exposures. The 

commenter also noted that the proposed 

reporting instructions for Schedule RC– 

R, Part II, state that ‘‘Although securities 

sold under agreements to repurchase are 

reported on the balance sheet (Schedule 

RC) as liabilities, they are treated as offbalance sheet items under the regulatory 

capital rules.’’ The commenter then 

questioned the intent of the agencies’ 

proposed reporting form that would 

require an institution to calculate a 

capital charge for these ‘‘off-balance 

sheet items’’ despite the fact that the 

security pledged by the institution as 

collateral for the repo remains on the 

balance sheet for accounting purposes 

and would therefore attract a separate 

on-balance sheet risk weighting. The 

agencies adopted this reporting 

approach for consistency with the 

revised regulatory capital rules, which 

recognize that institutions face 

counterparty credit risk when engaging 

in repo-style transactions. However, 

under certain conditions, the agencies’ 

revised regulatory capital rules also 

allow institutions to recognize the risk 

mitigating effects of financial collateral 

when risk weighting their repo-style 

exposures. The final reporting form and 

instructions for Schedule RC–R, Part II, 

would implement this treatment of 

repo-style transactions, which is set 

forth in the revised regulatory capital 

rules. 

The final version of Schedule RC–R, 

Part II, will also include a new line item 

22, ‘‘Unsettled transactions (failed 

trades),’’ in order to more clearly assess 

risk-based capital against delayed trades 

where the counterparty has failed to 

deliver an instrument or make a 

required payment in a timely manner. 

C. Schedule RC–R, Part II, Items 23–31: 

Totals 

Proposed items 23 through 31 apply 

the risk-weight factors to the exposure 

amounts reported for assets, derivatives, 

off-balance sheet items, and other items 

subject to risk weighting in items 11 

through 22 and then calculate an 

institution’s total risk-weighted assets. 

The agencies did not receive any 

additional comments on these line items 

and thus would largely retain the 

proposed line items without 

modification. 

D. Schedule RC–R, Part II, 

Memorandum Items 1–3: Derivatives 

In proposed memorandum items 1 

through 3, an institution would report 

the current credit exposure and notional 

principal amounts of its derivative 

contracts. 

Memorandum item 1 would continue 

to collect the ‘‘Current credit exposure 

across all derivative contracts covered 

by the risk-based capital standards.’’ 

One commenter noted that, prior to the 

proposed revisions, the instructions for 

Memorandum item 1 stated that all 

written option contracts (except those 

that are, in substance, financial 

guarantees) are not covered by the riskbased capital standards. However, this 

statement was omitted from the 

proposed instructions for Memorandum 

item 1. The commenter asked if this was 

an explicit change in the reporting of 

written option contracts. Written option 

contracts continue to be excluded from 

reporting in Memorandum item 1, 

consistent with the revised regulatory 

capital rules. The agencies will clarify 

this exclusion in the proposed 

instructions for Memorandum item 1. 

Existing Memorandum item 2 would 

be revised to provide for separate 

reporting, by remaining maturity and 

type of contract, of the notional 

principal amounts of the institution’s 

over-the-counter and centrally cleared 

derivative contracts subject to the 

revised regulatory capital rules. 

III. Treatment of Financial Subsidiaries 

During the review of the proposed 

forms and instructions, the agencies 

noted that the instructions were not 

clear regarding the treatment of assets 

and liabilities of financial subsidiaries 

for purposes of the capital calculations. 

Pursuant to 12 U.S.C. 24a(c), all assets 

and liabilities of financial subsidiaries 

must be deconsolidated and deducted 

for purposes of determining an 

institution’s compliance with the 

agencies’ regulatory capital standards. 

While the statutory treatment was 

explicitly included in the prior 

instructions, it was inadvertently 

omitted from the proposed instructions 

for Schedule RC–R, Part II. Therefore, 

the agencies will include language in 

the instructions specifically addressing 

the treatment of financial subsidiaries. 

Generally, any assets of financial 

subsidiaries reported in Call Report 

Schedule RC, Balance Sheet, and 

therefore included in the balance sheet 

amounts reported in column A of 

Schedule RC–R, Part II, would be 

reported as deductions in column B of 

Schedule RC–R, Part II. Derivatives and 

off-balance sheet items of financial 

subsidiaries would not be included for 

purposes of applying credit conversion 

factors and risk weighting in the 

remainder of Schedule RC–R, Part II. 

In addition, the agencies will clarify 

the instructions for the calculation of 

total assets for leverage ratio purposes in 

Schedule RC–R, Part I.B, to state that the 

assets of financial subsidiaries reported 

in Schedule RC, Balance Sheet, must be 

reported as a deduction in item 38 of 

Part I.B. 

IV. Proposed Changes to Call Report 

Schedule RC–L 

Call Report Schedule RC–L collects 

regulatory data on derivatives and offbalance sheet items. The agencies 

proposed to revise the reporting 

requirements for off-balance sheet 

exposures related to securities lent and 

borrowed, consistent with the revised 

regulatory capital rules. Compared to 

the current schedule, the proposed 

changes to Schedule RC–L would 

require all institutions to report the 

amount of securities borrowed. At 

present, institutions include the amount 

of securities borrowed in the total 

amount of all other off-balance sheet 

liabilities reported in item 9 of Schedule 

RC–L if the amount of securities 

borrowed is more than 10 percent of 

total bank equity capital and they 

disclose the amount of securities 

borrowed if that amount is more than 25 

percent of total bank equity capital. In 

addition, the proposed changes to 

Schedule RC–L would place the line 

item for securities borrowed in a new 

item 6.b immediately after the line item 

for securities lent, which would be 

renumbered from item 6 to item 6.a. 

One commenter noted that the current 

instructions for item 9 state to ‘‘report 

all securities borrowed against collateral 

(other than cash)’’ for such purposes as 

serving ‘‘as a pledge against deposit 

liabilities or delivery against short 

sales,’’ whereas the current instructions 

for item 6 state to report all securities 

owned that are ‘‘lent against collateral 

or on an uncollateralized basis.’’ The 

commenter characterizes current item 9 

as inclusive of only certain types of 

securities borrowings such as those 

collateralized by ‘‘other than cash’’ and 

those ‘‘for purposes as a pledge against 

deposit liabilities or short sales,’’ 

whereas current item 6 covers all types 

of securities lending regardless of the 

type of collateral. The commenter asks 

for clarification of the scope of these 

two items. 

Similar to current item 6 of Schedule 

RC–L, the instructions for item 6.b will 

clarify that institutions should report all 

types of securities borrowing, regardless 

of collateral type. The phrase ‘‘other 

than cash’’ will be deleted from the final 

instructions for item 6.b of Schedule 

RC–L. 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 5623 

V. Initial Reporting 

For the March 31, 2015, report date, 

institutions may provide reasonable 

estimates for any new or revised Call 

Report items initially required to be 

reported as of that date for which the 

requested information is not readily 

available. 

VI. Request for Comment 

Public comment is requested on all 

aspects of this joint notice. In particular, 

do institutions expect that making any 

specific line items on the proposed 

revised risk-weighted assets portion of 

Call Report Schedule RC–R public 

would cause them competitive or other 

harm? If so, identify the specific line 

items and describe in detail the nature 

of the harm. 

Additionally, comments are invited 

on: 

(a) Whether 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. All comments will become 

a matter of public record. 

Dated: January 22, 2015. 

Stuart Feldstein, 

Director, Legislative and Regulatory Activities 

Division, Office of the Comptroller of the 

Currency. 

By order of the Board of Governors of the 

Federal Reserve System, January 26, 2015. 

Robert deV. Frierson, 

Secretary of the Board. 

Dated at Washington, DC, this 21st day of 

January, 2015. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2015–02056 Filed 1–30–15; 8:45 am] 

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

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

Proposed Collection 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice and request for 

comments. 

SUMMARY: The Department of the 

Treasury, as part of its continuing effort 

to reduce paperwork and respondent 

burden, invites the general public and 

other Federal agencies to take this 

opportunity to comment on proposed 

and/or continuing information 

collections, as required by the 

Paperwork Reduction Act of 1995, 

Public Law 104–13 (44 U.S.C. 

3506(c)(2)(A)). Currently, the IRS is 

soliciting comments concerning 

Conforming Adjustments Subsequent to 

Section 482 Allocations. 

DATES: Written comments should be 

received on or before April 3, 2015 to 

be assured of consideration. 

ADDRESSES: Direct all written comments 

to Christie Preston, Internal Revenue 

Service, Room 6129, 1111 Constitution 

Avenue NW., Washington, DC 20224. 

FOR FURTHER INFORMATION CONTACT: 

Requests for additional information or 

copies of the regulations should be 

directed to Sara Covington at Internal 

Revenue Service, Room 6129, 1111 

Constitution Avenue NW., Washington, 

DC 20224, or through the Internet at 

Sara.L.Covington@irs.gov. 

SUPPLEMENTARY INFORMATION: 

Title: Conforming Adjustments 

Subsequent to Section 482 Allocations. 

OMB Number: 1545–1657. Revenue 

Procedure Number: Revenue Procedure 

99–32. 

Abstract: Revenue Procedure 99–32 

provides guidance for conforming a 

taxpayer’s accounts to reflect a primary 

adjustment under Internal Revenue 

Code section 482. The revenue 

procedure prescribes the applicable 

procedures for the repatriation of cash 

by a United States taxpayer via an 

interest-bearing account receivable or 

payable in an amount corresponding to 

the amount allocated under Code 

section 482 from, or to, a related person 

with respect to a controlled transaction. 

Current Actions: There are no changes 

being made to the revenue procedure at 

this time. 

Type of Review: Extension of a 

currently approved collection. 

Affected Public: Business or other forprofit organizations. 

Estimated Number of Respondents: 

180 

Estimated Time per Respondent: 9 

hours. 

Estimated Total Annual Burden 

Hours: 1,620. 

The following paragraph applies to all 

the collections of information covered 

by this notice: 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid OMB control number. 

Books or records relating to a collection 

of information must be retained as long 

as their contents may become material 

in the administration of any internal 

revenue law. Generally, tax returns and 

tax return information are confidential, 

as required by 26 U.S.C. 6103. 

Request for Comments: Comments 

submitted in response to this notice will 

be summarized and/or included in the 

request for OMB approval. All 

comments will become a matter of 

public record. Comments are invited on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information shall have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information to be collected; (d) ways to 

minimize the burden of the collection of 

information 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. 

Approved: January 22, 2015. 

Christie Preston, 

IRS Reports Clearance Officer. 

[FR Doc. 2015–01839 Filed 1–30–15; 8:45 am] 

BILLING CODE 4830–01–P 

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