[Federal Register Volume 70, Number 182 (Wednesday, September 21, 2005)]
[Proposed Rules]
[Pages 55308-55310]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-18748]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 741


Requirements for Issuance

AGENCY: National Credit Union Administration (NCUA).

ACTION: Notice of proposed rulemaking and request for comment.

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SUMMARY: NCUA proposes to amend its rule concerning financial and 
statistical reports to require all federally insured credit unions to 
file the same quarterly Financial and Statistical Report with NCUA. 
Under the amendment, all federally insured credits unions will file 
Form NCUA 5300 quarterly and the alternate Form NCUA 5300SF for credit 
unions with assets of less than ten million dollars will be eliminated.

DATES: Comments must be received on or before November 21, 2005.

ADDRESSES: You may submit comments by any of the following methods 
(Please send comments by one method only):
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    <bullet> NCUA Web Site: http://www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/proposed_ regs. html. Follow 
the instructions for submitting comments.
    <bullet> E-mail: Address to <a href="/cdn-cgi/l/email-protection#4634232125292b2b23283235062825332768212930"><span class="__cf_email__" data-cfemail="f88a9d9f9b9795959d968c8bb8969b8d99d69f978e">[email protected]</span></a>. Include ``[Your 
name] Comments on Proposed Rule Section 741.6,'' in the e-mail subject 
line.
    <bullet> Fax: (703) 518-6319. Use the subject line described above 
for e-mail.
    <bullet> Mail: Address to Mary F. Rupp, Secretary of the Board, 
National Credit Union Administration, 1775 Duke Street, Alexandria, 
Virginia 22314-3428.
    <bullet> Hand Delivery/Courier: Same as mail address.
    Public inspection: All public comments are available on the 
agency's Web site at http://www.ncua.gov/RegulationsOpinionsLaws/comments as submitted, except as may not be possible for technical 
reasons. Public comments will not be edited to remove any identifying 
or contact information. Paper copies of comments may be inspected in 
NCUA's law library, at 1775 Duke Street, Alexandria, Virginia 22314, by 
appointment weekdays

[[Page 55309]]

between 9 a.m. and 3 p.m. To make an appointment, call (703) 518-6546 
or send an e-mail to <a href="/cdn-cgi/l/email-protection#400f07030d21292c002e2335216e272f36"><span class="__cf_email__" data-cfemail="672820242a060e0b270904120649000811">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Matt Nixon, Risk Management Officer, 
or Larry Fazio, Director, Division of Risk Management, Office of 
Examination and Insurance, at the above address or telephone number: 
(703) 518-6360; or Regina M. Metz, Staff Attorney, Office of General 
Counsel, at the above address or telephone (703) 518-6540.

SUPPLEMENTARY INFORMATION:

Proposed Change

    The NCUA Board proposes revising Sec.  741.6(a), the provision 
governing the filing of quarterly Financial and Statistical Reports, 
also known as Call Reports or 5300 reports. 12 CFR 741.6(a). The NCUA 
Board last revised Sec.  741.6(a) in 2002. 67 FR 12464, March 19, 2002. 
Before those 2002 revisions, this section required all federally 
insured credit unions with assets in excess of $50 million to file a 
quarterly call report with NCUA. All other federally insured credit 
unions filed semiannually.
    Since the 2002 amendments, all federally insured credit unions are 
required to file quarterly Call Reports, but credit unions with less 
than ten million dollars in assets have the option of filing a short 
form for the first and third quarters. The current proposed amendment 
would require all federally insured credit unions to file the same 
quarterly call report form, a revised Form NCUA 5300.
    The revised Form NCUA 5300 consolidates information, reduces 
ancillary schedules, and is easier to read and use. Based on the 
revisions, the short form is no longer needed. NCUA's regional offices 
have reviewed the proposed consolidated format and have concurred with 
this recommendation to improve efficiency.
    The new design provides many benefits for credit unions. The Call 
Report form will have a consistent appearance each cycle, which will 
eliminate confusion for smaller credit unions, and it is shorter: 16 
pages compared to 19 pages in the current version. In addition, the 
revised form is designed so small credit unions generally will not have 
to complete supporting schedules. Only the first ten pages require 
input by all credit unions. For comparison, the current short form is 
only eight pages but the new, easier format will reduce the burden. 
NCUA currently reports to the Office of Management and Budget an 
average completion time of 6.6 hours for the regular Form NCUA 5300 and 
6.0 hours for the Form NCUA 5300SF. The consolidated form should not 
materially impact the time spent by smaller credit unions, meaning 
those under ten million dollars in assets.
    The new design also provides efficiencies and benefits to NCUA. By 
eliminating the short form NCUA only has to maintain one 5300 form, one 
set of edits and warnings, and one set of Financial Performance Report 
specifications. This will improve efficiency and reduce the likelihood 
of introducing errors in the reporting system. In addition, the burden 
on the Office of the Chief Financial Officer and the cost of printing 
and mailing will be reduced with the distribution of a single form. 
Both internal and external quarterly financial trend analysis will be 
improved, since comprehensive quantitative data will be reported by all 
credit unions. Further, the shift to one Call Report will simplify 
maintenance of the Financial Performance Report and provide additional 
data needed for small credit unions to utilize fully the expanded 
Financial Performance Report. Additionally, trend reports from NCUA's 
Automated Integrated Regulatory Examination System (AIRES) will be more 
consistent and detailed for smaller credit unions. For example, 
quarterly detail that is currently not provided for real estate loans 
and investments will be available when applicable.
    In summary, the consolidation of the Call Report and elimination of 
the Form NCUA 5300SF will improve the agency's efficiency, increase the 
accuracy of the information collected, and simplify the reporting 
process for credit unions, large and small. NCUA plans to implement the 
revised form in September 2006. Accordingly, NCUA is proposing the 
corresponding changes in NCUA's regulation on financial and statistical 
and other reports, section 741.6, to reflect the revision to the single 
Call Report system.

Regulatory Procedures

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 and Office of Management and 
Budget (OMB) regulations require that the public be provided an 
opportunity to comment on the paperwork requirements, including an 
agency's estimate of the burden of the paperwork requirements. The NCUA 
Board previously determined that the rule to require all federally 
insured credit unions to file a Call Report form on a quarterly basis 
is covered under the Paperwork Reduction Act.
    Currently, credit unions with assets less than ten million dollars 
have the option in the first and third quarters of filing the NCUA 
5300SF with NCUA. We now report to OMB an average completion time of 
6.6 hours for the regular Form NCUA 5300 and 6.0 hours for the Form 
NCUA 5300SF. NCUA estimated annually 38,050 forms are submitted to 
NCUA, with an average annual completion time of 251,130 hours, at an 
annual cost of $5,497,542. OMB approved the information collections 
under both Forms NCUA 5300 and NCUA 5300SF as OMB number 3133-0004.
    NCUA is submitting a copy of this proposed rule and revised Form 
NCUA 5300 to OMB for its review. The revised consolidated form should 
not materially impact the time spent by credit unions. The NCUA Board 
invites comment on: (1) Whether the paperwork requirements are 
necessary; (2) the accuracy of NCUA's estimate on the burden of the 
paperwork requirements; (3) ways to enhance the quality, utility, and 
clarity of the paperwork requirements; and (4) ways to minimize the 
burden of the paperwork requirements. The time required by a federally 
insured credit union to complete the call report will depend on the 
complexity of its operations. The NCUA Board is especially interested 
in receiving comments on the actual hours it takes a credit union to 
complete its call report based on its asset size and complexity of 
operations. The actual hours should exclude the time associated with 
the month-end closing and the preparation of the monthly financial 
statements.
    Comments should be sent to: OMB Reports Management Branch, New 
Executive Office Building, Room 10202, Washington, DC 20503; Attention: 
Mark Menchik, Desk Officer for NCUA. Please send NCUA a copy of any 
comments you submit to OMB.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires NCUA to prepare an 
analysis to describe any significant economic impact any proposed 
regulation may have on a substantial number of small entities. 5 U.S.C. 
601-612. NCUA considers credit unions having less than ten million 
dollars in assets to be small for purposes of RFA. Interpretive Ruling 
and Policy Statement (IRPS) 87-2 as amended by IRPS 03-2. The proposal 
requires all federally insured credit unions to complete the same, 
revised, Form NCUA 5300.
    The NCUA has determined and certifies that this proposed rule, if 
adopted, will not have a significant

[[Page 55310]]

economic impact on a substantial number of small credit unions. 
Accordingly, the NCUA has determined that an RFA analysis is not 
required. NCUA solicits comment on this analysis and welcomes any 
information that would suggest a different conclusion.

Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their regulatory actions on state and local 
interests. In adherence to fundamental federalism principles, NCUA, an 
independent regulatory agency as defined in 44 U.S.C. 3502(5), 
voluntarily complies with the executive order. This proposed rule, if 
adopted, will not have substantial direct effects on the states, on the 
relationship between the national government and states, or on the 
distribution of power and responsibilities among the various levels of 
government. NCUA has determined the proposed rule does not constitute a 
policy that has federalism implications for purposes of the executive 
order.

Treasury and General Government Appropriations Act, 1999

    NCUA has determined that the proposed rule will not affect family 
well-being within the meaning of section 654 of the Treasury and 
General Appropriations Act, 1999, Public Law 105-277, 112 Stat. 2681 
(1998).

Agency Regulatory Goal

    NCUA's goal is clear. The proposed regulatory change is 
understandable and imposes minimal regulatory burden. NCUA requests 
comments on whether the proposed rule change is understandable and 
minimally intrusive if implemented as proposed.

List of Subjects in 12 CFR Part 741

    Credit Unions, Requirements for Insurance

    By the National Credit Union Administration Board on September 
15, 2005.
Mary Rupp,
Secretary of the Board.

    Accordingly, NCUA proposes to amend 12 CFR part 741 as follows:

PART 741--REQUIREMENTS FOR INSURANCE

    1. The authority citation for part 741 continues to read as 
follows:

    Authority: 12 U.S.C. 1757, 1766(a), and 1781-1790; Pub. L. 101-
73.

    2. Amend Sec.  741.6 by revising paragraph (a) to read as follows:


Sec.  741.6  Financial and statistical and other reports.

    (a) Each operating insured credit union must file with the NCUA a 
quarterly Financial and Statistical Report on Form NCUA 5300 according 
to the deadlines published on the Form NCUA 5300, which occur in 
January (for quarter-end December 31), April (for quarter-end March 
31), July (for quarter-end June 30), and October (for quarter-end 
September 30) of each year.
* * * * *
[FR Doc. 05-18748 Filed 9-20-05; 8:45 am]
BILLING CODE 7535-01-P


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