95786 Federal Register / Vol. 89, No. 232 / Tuesday, December 3, 2024 / Notices 

FOR FURTHER INFORMATION CONTACT: For 

additional information about the 

information collection, contact Cathy 

Williams at (202) 418–2918. 

SUPPLEMENTARY INFORMATION: 

OMB Control Number: 3060–0748. 

Title: Section 64.104, 64.1509, 

64.1510 Pay-Per-Call and Other 

Information Services. 

Form Number: N/A. 

Type of Review: Extension of a 

currently approved collection. 

Respondents: Business or other forprofit entities. 

Number of Respondents and 

Responses: 5,125 respondents; 5,175 

responses. 

Estimated Time per Response: 2 to 

260 hours. 

Frequency of Response: Annual and 

on occasion reporting and 

recordkeeping requirements; Third 

party disclosure requirement. 

Obligation to Respond: Required to 

obtain or retain benefits. The statutory 

authority(s) for the information 

collection is found at 47 U.S.C. 

228(c)(7)–(10); Public Law 192–556, 106 

Stat. 4181 (1992), codified at 47 U.S.C. 

228 (The Telephone Disclosure and 

Dispute Resolution Act of 1992). 

Total Annual Burden: 47,750 hours. 

Total Annual Cost: None. 

Needs and Uses: Regulations at 47 

CFR 64.1504 of the Commission’s rules 

incorporate the requirements of sections 

228(c)(7)–(10) of the Communications 

Act restricting the manner in which tollfree numbers may be used to charge 

telephone subscribers for information 

services. Common carriers may not 

charge a calling party for information 

conveyed on a toll-free number call, 

unless the calling party: (1) has 

executed a written agreement that 

specifies the material terms and 

conditions under which the information 

is provided, or (2) pays for the 

information by means of a prepaid 

account, credit, debit, charge, or calling 

card and the information service 

provider gives the calling party an 

introductory message disclosing the cost 

and other terms and conditions for the 

service. The disclosure requirements are 

intended to ensure that consumers 

know when charges will be levied for 

calls to toll-free numbers and are able to 

obtain information necessary to make 

informed choices about whether to 

purchase toll-free information services. 

Regulations at 47 CFR 64.1509 of the 

Commission rules incorporate the 

requirements of 47 U.S.C. (c)(2) and 228 

(d)(2)–(3) of the Communications Act. 

Common carriers that assign telephone 

numbers to pay-per-call services must 

disclose to all interested parties, upon 

request, a list of all assigned pay-percall numbers. For each assigned 

number, carriers must also make 

available: (1) a description of the payper-call services; (2) the total cost per 

minute or other fees associated with the 

service; and (3) the service provider’s 

name, business address, and telephone 

number. In addition, carriers handling 

pay-per-call services must establish a 

toll-free number that consumers may 

call to receive information about payper-call services. Finally, the 

Commission requires carriers to provide 

statements of pay-per-call rights and 

responsibilities to new telephone 

subscribers at the time service is 

established and, although not required 

by statute, to all subscribers annually. 

Under 47 CFR 64.1510 of the 

Commission’s rules, telephone bills 

containing charges for interstate payper-call and other information services 

must include information detailing 

consumers’ rights and responsibilities 

with respect to these charges. 

Specifically, telephone bills carrying 

pay-per-call charges must include a 

consumer notification stating that: (1) 

the charges are for non-communication 

services; (2) local and long distance 

telephone services may not be 

disconnected for failure to pay per-call 

charges; (3) pay-per-call (900 number) 

blocking is available upon request; and 

(4) access to pay-per-call services may 

be involuntarily blocked for failure to 

pay per-call charges. In addition, each 

call billed must show the type of 

services, the amount of the charge, and 

the date, time, and duration of the call. 

Finally, the bill must display a toll-free 

number which subscribers may call to 

obtain information about pay-per-call 

services. Similar billing disclosure 

requirements apply to charges for 

information services either billed to 

subscribers on a collect basis or 

accessed by subscribers through a tollfree number. The billing disclosure 

requirements are intended to ensure that 

telephone subscribers billed for pay-percall or other information services can 

understand the charges levied and are 

informed of their rights and 

responsibilities with respect to payment 

of such charges. 

Federal Communications Commission. 

Marlene Dortch, 

Secretary, Office of the Secretary. 

[FR Doc. 2024–27547 Filed 12–2–24; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

FEDERAL RESERVE SYSTEM 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

Joint Report to Congressional 

Committees: Differences in 

Accounting and Capital Standards 

Among the Federal Banking Agencies 

as of September 30, 2024 

AGENCY: Office of the Comptroller of the 

Currency, Treasury; Board of Governors 

of the Federal Reserve System; and 

Federal Deposit Insurance Corporation. 

ACTION: Report to congressional 

committees. 

SUMMARY: The Office of the Comptroller 

of the Currency (OCC), the Board of 

Governors of the Federal Reserve 

System (Board), and the Federal Deposit 

Insurance Corporation (FDIC) 

(collectively, the agencies) have 

prepared this report pursuant to section 

37(c) of the Federal Deposit Insurance 

Act. Section 37(c) requires the agencies 

to jointly submit an annual report to the 

Committee on Financial Services of the 

U.S. House of Representatives and to the 

Committee on Banking, Housing, and 

Urban Affairs of the U.S. Senate 

describing differences among the 

accounting and capital standards used 

by the agencies for insured depository 

institutions (institutions). Section 37(c) 

requires that this report be published in 

the Federal Register. The agencies have 

not identified any material differences 

among the agencies’ accounting and 

capital standards applicable to the 

institutions they regulate and supervise. 

FOR FURTHER INFORMATION CONTACT: 

OCC: Joshua Kuntz, Risk Expert, 

Capital Policy, (202) 649–5074, Carl 

Kaminski, Assistant Director, Chief 

Counsel’s Office, (202) 649–5869, Office 

of the Comptroller of the Currency, 400 

7th Street SW, Washington, DC 20219. 

If you are deaf, hard of hearing, or have 

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

access telecommunications relay 

services. 

Board: Andrew Willis, Manager, (202) 

912–4323, Daniel Schwindt, Financial 

Institution Policy Analyst III, (202) 960– 

5463, Division of Supervision and 

Regulation, Mark Buresh, Senior Special 

Counsel (202) 452–5270 and Jasmin 

Keskinen, Senior Attorney, (202) 475– 

6650, Legal Division, Board of 

Governors of the Federal Reserve 

System, 20th Street and Constitution 

Avenue NW, Washington, DC 20551. 


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Federal Register / Vol. 89, No. 232 / Tuesday, December 3, 2024 / Notices 95787 

1 12 U.S.C. 1831n(c)(1) and 12 U.S.C. 1831n(c)(3). 

2Although not required under section 37(c), this 

report includes descriptions of certain of the 

Board’s capital standards applicable to depository 

institution holding companies where such 

descriptions are relevant to the discussion of capital 

standards applicable to institutions. 

3See 78 FR 62018 (October 11, 2013) (final rule 

issued by the OCC and the Board); 78 FR 55340 

(September 10, 2013) (interim final rule issued by 

the FDIC). The FDIC later issued its final rule in 79 

FR 20754 (April 14, 2014). The agencies’ respective 

capital rule is at 12 CFR part 3 (OCC), 12 CFR part 

217 (Board), and 12 CFR part 324 (FDIC). The 

capital rule applies to institutions, as well as to 

certain bank holding companies (BHCs) and savings 

and loan holding companies (SLHCs). See also 12 

CFR 217.1(c). 

4The capital rule reflects the scope of each 

agency’s regulatory jurisdiction. For example, the 

Board’s capital rule includes requirements related 

to BHCs, SLHCs, and state member banks (SMBs), 

while the FDIC’s capital rule includes provisions 

for state nonmember banks and state savings 

associations, and the OCC’s capital rule includes 

provisions for national banks and federal savings 

associations. 

5Certain minor differences, such as terminology 

specific to each agency for the institutions that it 

supervises, are not included in this report. 

6See 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12 

CFR 324.2 (FDIC). 

7 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12 CFR 

324.2 (FDIC). 

8 12 CFR 217.2. 

9 12 CFR 217.20(b)(1)(v) and 217.20(c)(1)(viii) 

(Board). 

10 12 CFR 217.20(b)(1)(v) and 217.20(c)(1)(viii) 

(Board); 12 CFR 324.20(b)(1)(v) and 

324.20(c)(1)(viii) (FDIC). Although not referenced in 

the capital rule, the OCC has similar restrictions on 

dividends; 12 CFR 5.55 and 12 CFR 5.63. Certain 

restrictions on the payment of dividends that apply 

under separate regulations, and therefore not 

discussed in this report, are different among the 

agencies. Compare 12 CFR 208.5 (Board) and 12 

CFR 5.64 (OCC) with 12 CFR 303.241 (FDIC). 

For users of Telecommunications 

Device for the Deaf (TDD) and TTY– 

TRS, please call 711 from any 

telephone, anywhere in the United 

States. 

FDIC: Benedetto Bosco, Chief, Capital 

Policy Section, (703) 245–0778, 

Christine Bouvier, Assistant Chief 

Accountant, (202) 898–7289, Richard 

Smith, Capital Policy Analyst, Capital 

Policy Section, (703) 254–0782, Division 

of Risk Management Supervision, 

Merritt Pardini, Counsel, (202) 898– 

6680, Legal Division, Federal Deposit 

Insurance Corporation, 550 17th Street 

NW, Washington, DC 20429. 

SUPPLEMENTARY INFORMATION: The text of 

the report follows: 

Report to Congress 

Report to the Committee on Financial 

Services of the U.S. House of 

Representatives and to the Committee 

on Banking, Housing, and Urban 

Affairs of the U.S. Senate Regarding 

Differences in Accounting and Capital 

Standards Among the Federal Banking 

Agencies 

Introduction 

In accordance with section 37(c),1 the 

agencies are submitting this joint report, 

which covers differences among their 

accounting and capital standards 

existing as of September 30, 2024, 

applicable to institutions.2 As of 

September 30, 2024, the agencies have 

not identified any material differences 

among the agencies’ accounting 

standards applicable to institutions. 

In 2013, the agencies revised the riskbased and leverage capital rule for 

institutions (capital rule),3 which 

harmonized the agencies’ capital rule in 

a comprehensive manner.4 Since 2013, 

the agencies have revised the capital 

rule on several occasions, further 

reducing the number of differences in 

the agencies’ capital rule. Today, only a 

few differences remain, which are 

statutorily mandated for certain 

categories of institutions, or which 

reflect certain technical, generally 

nonmaterial differences among the 

agencies’ capital rule. No new material 

differences were identified in the capital 

standards applicable to institutions in 

this report compared to the previous 

report submitted by the agencies 

pursuant to section 37(c). 

Differences in the Standards Among the 

Federal Banking Agencies 

Differences in Accounting Standards 

As of September 30, 2024, the 

agencies have not identified any 

material differences among themselves 

in the accounting standards applicable 

to institutions. 

Differences in Capital Standards 

The following are the remaining 

technical differences among the capital 

standards of the agencies’ capital rule.5

Definitions 

The agencies’ capital rule largely 

contains the same definitions.6 The 

differences that exist generally serve to 

accommodate the different needs of the 

institutions that each agency charters, 

regulates, and/or supervises. 

The agencies’ capital rule has 

differing definitions of a pre-sold 

construction loan. The capital rule of all 

three agencies provides that a pre-sold 

construction loan means any ‘‘one-tofour family residential construction loan 

to a builder that meets the requirements 

of section 618(a)(1) or (2) of the 

Resolution Trust Corporation 

Refinancing, Restructuring, and 

Improvement Act of 1991 (12 U.S.C. 

1831n), and, in addition to other 

criteria, the purchaser has not 

terminated the contract.’’ 7 The Board’s 

definition provides further clarification 

that, if a purchaser has terminated the 

contract, the institution must 

immediately apply a 100 percent risk 

weight to the loan and report the revised 

risk weight in the next quarterly 

Consolidated Reports of Condition and 

Income (Call Report).8 Similarly, if the 

purchaser has terminated the contract, 

the OCC and FDIC capital rule would 

immediately disqualify the loan from 

receiving a 50 percent risk weight, and 

would apply a 100 percent risk weight 

to the loan. The change in risk weight 

would be reflected in the next quarterly 

Call Report. Thus, the minor wording 

difference between the agencies should 

have no practical consequence. 

Capital Components and Eligibility 

Criteria for Regulatory Capital 

Instruments 

While the capital rule generally 

provides uniform eligibility criteria for 

regulatory capital instruments, there are 

some textual differences among the 

agencies’ capital rule. The capital rule of 

each of the three agencies requires that, 

for an instrument to qualify as common 

equity tier 1 or additional tier 1 capital, 

cash dividend payments be paid out of 

net income and retained earnings, but 

the Board’s capital rule also allows cash 

dividend payments to be paid out of 

related surplus.9 The provision in the 

Board’s capital rule that allows 

dividends to be paid out of related 

surplus is a difference in substance 

among the agencies’ capital rule. 

However, due to the restrictions on 

institutions regulated by the Board in 

separate regulations, this additional 

language in the Board’s rule has a 

practical impact only on bank holding 

companies (BHCs) and savings and loan 

holding companies (SLHCs) and is not 

a difference as applied to institutions. 

The agencies apply the criteria for 

determining eligibility of regulatory 

capital instruments in a manner that 

ensures consistent outcomes for 

institutions. 

Both the Board’s capital rule and the 

FDIC’s capital rule also include an 

additional sentence noting that 

institutions regulated by each agency 

are subject to restrictions independent 

of the capital rule on paying dividends 

out of surplus and/or that would result 

in a reduction of capital stock.10 These 

additional sentences do not create 

differences in substance between the 

agencies’ capital standards, but rather 

note that restrictions apply under 

separate regulations. 

In addition, the Board’s capital rule 

includes a requirement that a Boardregulated institution must obtain prior 

approval before redeeming regulatory 


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95788 Federal Register / Vol. 89, No. 232 / Tuesday, December 3, 2024 / Notices 

11Board-regulated institution refers to an SMB, a 

BHC, or an SLHC. See 12. CFR 217.2; 12 CFR 

217.20(f); see also 12 CFR 217.20(b)(1)(iii). 

12See 12 CFR 5.46, 5.47, 5.55, and 5.56 (OCC); 

12 CFR 208.5 (Board); 12 CFR 303.241 (FDIC). 

13 12 CFR 324.22(a)(9). 

14 12 U.S.C. 1464(t)(5). 

15Subsidiaries engaged in activities not 

permissible for national banks are considered nonincludable subsidiaries. 

16A deduction from capital is only required to the 

extent that the savings association’s investment 

exceeds the generally applicable thresholds for 

deduction of investments in the capital of an 

unconsolidated financial institution. 

17 12 U.S.C. 1464(t)(1)(A)(ii) and (t)(2)(B). 

18 12 CFR 3.10(a)(6) (OCC); 12 CFR 

324.10(a)(1)(vi) (FDIC). The Board’s regulatory 

capital framework does not apply to savings 

associations and, therefore, does not include this 

requirement. 

19See 12 U.S.C. 1831o(c)(3); see also 12 CFR 6.4 

(OCC); 12 CFR 208.45 (Board); 12 CFR 324.403 

(FDIC). 

20 12 U.S.C. 1831o(h)(3)(A). 

21See 79 FR 24,528 (May 1, 2014). 

22 12 CFR 6.4(b)(1)(i)(D)(2) (OCC); 12 CFR 

208.43(b)(1)(i)(D)(2) (Board); 12 CFR 

324.403(b)(1)(ii) (FDIC). 

23 12 CFR 208.43(b)(1)(i)(D)(2) (Board); 12 CFR 

324.403(b)(1)(ii) (FDIC). 

24 12 CFR 6.4(b)(1)(i)(D)(2) (OCC). 

capital instruments.11 This requirement 

effectively applies only to a BHC or an 

SLHC and is, therefore, not included in 

the OCC’s and FDIC’s capital rule. All 

three agencies require institutions to 

obtain prior approval before redeeming 

regulatory capital instruments in other 

regulations.12 The additional provision 

in the Board’s capital rule, therefore, 

only has a practical impact on BHCs and 

SLHCs and is not a difference as applied 

to institutions. 

Capital Deductions 

There is a technical difference 

between the FDIC’s capital rule and the 

OCC’s and Board’s capital rule with 

regard to an explicit requirement for 

deduction of examiner-identified losses. 

The agencies require their examiners to 

determine whether their respective 

supervised institutions have 

appropriately identified losses. The 

FDIC’s capital rule, however, explicitly 

requires FDIC-supervised institutions to 

deduct identified losses from common 

equity tier 1 capital elements, to the 

extent that the institutions’ common 

equity tier 1 capital would have been 

reduced if the appropriate accounting 

entries had been recorded.13 Generally, 

identified losses are those items that an 

examiner determines to be chargeable 

against income, capital, or general 

valuation allowances. 

For example, identified losses may 

include, among other items, assets 

classified as loss, off-balance-sheet 

items classified as loss, any expenses 

that are necessary for the institution to 

record in order to replenish its general 

valuation allowances to an adequate 

level, and estimated losses on 

contingent liabilities. The Board and the 

OCC expect their supervised institutions 

to promptly recognize examineridentified losses, but the requirement is 

not explicit under their capital rule. 

Instead, the Board and the OCC apply 

their supervisory authorities to ensure 

that their supervised institutions charge 

off any identified losses. 

Subsidiaries of Savings Associations 

There are special statutory 

requirements for the agencies’ capital 

treatment of a savings association’s 

investment in or credit to its 

subsidiaries as compared with the 

capital treatment of such transactions 

between other types of institutions and 

their subsidiaries. Specifically, the 

Home Owners’ Loan Act (HOLA) 

distinguishes between subsidiaries of 

savings associations engaged in 

activities that are permissible for 

national banks and those engaged in 

activities that are not permissible for 

national banks.14

When subsidiaries of a savings 

association are engaged in activities that 

are not permissible for national banks,15

the parent savings association generally 

must deduct the parent’s investment in 

and extensions of credit to these 

subsidiaries from the capital of the 

parent savings association. If a 

subsidiary of a savings association 

engages solely in activities permissible 

for national banks, no deduction is 

required, and investments in and loans 

to that organization may be assigned the 

risk weight appropriate for the 

activity.16 As the appropriate federal 

banking agencies for federal and state 

savings associations, respectively, the 

OCC and the FDIC apply this capital 

treatment to those types of institutions. 

The Board’s regulatory capital 

framework does not apply to savings 

associations and, therefore, does not 

include this requirement. 

Tangible Capital Requirement 

Federal law subjects savings 

associations to a specific tangible capital 

requirement but does not similarly do so 

with respect to banks. Under section 

5(t)(2)(B) of HOLA, savings associations 

are required to maintain tangible capital 

in an amount not less than 1.5 percent 

of total assets.17 The capital rule of the 

OCC and the FDIC includes a 

requirement that savings associations 

maintain a tangible capital ratio of 1.5 

percent.18 This statutory requirement 

does not apply to banks and, thus, there 

is no comparable regulatory provision 

for banks. The distinction is of little 

practical consequence, however, 

because under the Prompt Corrective 

Action (PCA) framework, all institutions 

are considered critically 

undercapitalized if their tangible equity 

falls below 2 percent of total assets.19

Generally speaking, the appropriate 

federal banking agency must appoint a 

receiver within 90 days after an 

institution becomes critically 

undercapitalized.20

Enhanced Supplementary Leverage 

Ratio 

The agencies adopted enhanced 

supplementary leverage ratio standards 

that took effect beginning on January 1, 

2018.21 These standards require certain 

BHCs to exceed a 5 percent 

supplementary leverage ratio to avoid 

limitations on distributions and certain 

discretionary bonus payments and also 

require the subsidiary institutions of 

these BHCs to meet a 6 percent 

supplementary leverage ratio to be 

considered ‘‘well capitalized’’ under the 

PCA framework.22 The rule text 

establishing the scope of application for 

the enhanced supplementary leverage 

ratio differs among the agencies. The 

Board and the FDIC apply the enhanced 

supplementary leverage ratio standards 

for institutions based on parent BHCs 

being identified as global systemically 

important BHCs as defined in 12 CFR 

217.2.23 The OCC applies enhanced 

supplementary leverage ratio standards 

to the institution subsidiaries under 

their supervisory jurisdiction of a toptier BHC that has more than $700 billion 

in total assets or more than $10 trillion 

in assets under custody.24

Michael J. Hsu, 

Acting Comptroller of the Currency. Board 

of Governors of the Federal Reserve System. 

Ann E. Misback, 

Secretary of the Board. 

Federal Deposit Insurance Corporation. 

Dated at Washington, DC, on November 25, 

2024. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2024–28227 Filed 12–2–24; 8:45 am] 

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

FEDERAL RESERVE SYSTEM 

Change in Bank Control Notices; 

Acquisitions of Shares of a Bank or 

Bank Holding Company 

The notificants listed below have 

applied under the Change in Bank 

Control Act (Act) (12 U.S.C. 1817(j)) and 

§ 225.41 of the Board’s Regulation Y (12 

CFR 225.41) to acquire shares of a bank 


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