Source: https://regulations.vlex.com/vid/reduced-reporting-for-covered-746497933
Timestamp: 2019-02-23 20:50:06
Document Index: 261359377

Matched Legal Cases: ['arts 52', 'art 3', 'art 217', 'art 324', 'art 211', 'art 3', 'art 217', 'art 324', 'art 304', 'art 304', 'art 6', 'art 208', 'ART 52', 'art 208', 'art 208', 'ART 304']

Reduced Reporting for Covered Depository Institutions - November 19, 2018 - Regulations - VLEX 746497933
Pages 58432-58458
FR Doc No: 2018-24587
12 CFR Parts 52, 208, and 304
Reduced Reporting for Covered Depository Institutions; Proposed Rule
RIN 7100-AF12
RIN 3065-AE82
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).
SUMMARY: The OCC, the Board, and the FDIC (collectively, the agencies) are inviting comment on a proposed rule that would implement section 205 of the Economic Growth, Regulatory Relief, and Consumer Protection Act by: Expanding the eligibility to file the agencies' most streamlined report of condition, the FFIEC 051 Call Report, to include certain insured depository institutions with less than $5 billion in total consolidated assets that meet other criteria; and, establishing reduced reporting on the FFIEC 051 Call Report for the first and third reports of condition for a year. The OCC and Board also are proposing similar reduced reporting for certain uninsured institutions that they supervise with less than $5 billion in total consolidated assets that otherwise meet the same criteria. This Federal Register notice also includes a Paperwork Reduction Act notice to reduce the amount of data required to be reported on the FFIEC 051 Call Report for the first and third calendar quarters, and other related changes.
DATES: Comments must be received by January 18, 2019.
OCC: You may submit comments to the OCC by any of the methods set forth below. Commenters are encouraged to submit comments through the Federal eRulemaking Portal or email, if possible. Please use the title ``Reduced Reporting for Covered Depository Institutions'' to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods:
Federal eRulemaking Portal--``Regulations.gov'': Go to www.regulations.gov. Enter ``Docket ID OCC-2018-0032'' in the Search Box and click ``Search.'' Click on ``Comment Now'' to submit public comments.
Instructions: You must include ``OCC'' as the agency name and ``Docket ID OCC-2018-0032'' in your comment.
Viewing Comments Electronically: Go to www.regulations.gov. Enter ``Docket ID OCC-2018-0032'' in the Search box and click ``Search.'' Click on ``Open Docket Folder'' on the right side of the screen. Comments and supporting materials can be viewed and filtered by clicking on ``View all documents and comments in this docket'' and then using the filtering tools on the left side of the screen.
Email: email protected. Include docket and RIN numbers in the subject line of the message.
Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the Agency website.
Hand Delivery/Courier: Comments may be hand-delivered to the guard
station at the rear of the 550 17th Street NW building (located on F Street) on business days between 7:00 a.m. and 5:00 p.m.
Email: email protected. Comments submitted must include ``FDIC'' and ``RIN 3064-AE82'' on the subject line of the message.
Public Inspection: All comments received must include ``FDIC'' and ``RIN 3064-AE82'' for this rulemaking. 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 ordered from the FDIC Public Information Center, 3501 North Fairfax Drive, Room E-1002, Arlington, VA 22226, or by telephone at (877) 275-3342 or (703) 562-2200.
FDIC: Robert Storch, Chief Accountant, Division of Risk Management Supervision, (202) 898-8906, email protected; or Nefretete Smith, Counsel, Legal Division, (202) 898-6851, email protected; or Kathryn Marks, Counsel, Legal Division, (202) 898-3896, email protected.
Expected Impact of the Proposed Rule
Related Agency-Specific Revisions
OCC Unfunded Mandates Reform Act of 1995
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) are inviting comment on this notice of proposed rulemaking (proposed rule) that would implement reduced reporting on the Consolidated Reports of Condition and Income (Call Report) \1\ for eligible small insured depository institutions, consistent with section 205 of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA).\2\ The OCC and Board also are proposing to implement reduced reporting for eligible uninsured institutions. The proposed rule would expand the number of institutions that may file the FFIEC 051 Call Report, the most streamlined version of the Call Report, and would provide for reduced reporting in the FFIEC 051 Call Report. Through the included Paperwork Reduction Act (PRA) notice, the agencies are proposing to reduce the amount of data required to be reported on the FFIEC 051 Call Report for the first and third calendar quarters.
\1\ The ``Call Report'' is the report of condition and income for most insured depository institutions. There currently are three versions of the Call Reports: The Consolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices (FFIEC 031), the Consolidated Report of Condition and Income for a Bank with Domestic Offices Only (FFIEC 041), and the Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only and Total Assets Less Than $1 Billion (FFIEC 051).
The proposed reduced reporting would be available to smaller, non-
complex institutions, with domestic offices only, that meet the definition of ``covered depository institution.'' That term generally is defined in the proposed rule to mean an institution that has less than $5 billion in total consolidated assets, has no foreign offices, is not required to or has not elected to use Subpart E (Internal Ratings-Based and Advanced Measurement Approaches) of the agencies' regulatory capital rules to calculate its risk-based capital requirements, and is not a large or highly complex institution for purposes of the FDIC's assessment regulations.
The proposed rule would provide for reduced reporting by allowing covered depository institutions to file the FFIEC 051 Call Report, with fewer data items required in the reports for the first and third calendar quarters. For covered depository institutions, the principal areas of reduced reporting in the first and third calendar quarters generally would include data items related to categories of risk-
weighting of various types of assets and other exposures under the agencies' regulatory capital rules, fiduciary and related services assets and income, and troubled debt restructurings by loan category. In addition, covered depository institutions that previously were ineligible to file the FFIEC 051 Call Report (i.e., those with total assets of $1 billion or more) would benefit from the FFIEC 051 Call Report's less detailed quarterly reporting as compared to other versions of the Call Report.\3\
\3\ As compared with other versions of the Call Report, the FFIEC 051 Call Report requires less detailed reporting for data items related to trading, mortgage banking, and securitization activities, as well as less detail for other lending and derivatives activities.
In their statutory roles of chartering, licensing, supervising, or insuring institutions,\4\ the agencies principally rely on information obtained through on-site examinations of institutions, off-site supervisory activities between examinations, and information reported on an institution's report of condition. The report of condition is the Call Report for most insured depository institutions.\5\ Call Reports provide the most current financial and statistical data available for identifying areas of focus for supervision and for on-site and off-site examinations. The agencies use Call Report data in monitoring the condition, performance, and risk profile of individual institutions and the industry as a whole. Call Report data assist the agencies in their collective missions of promoting the safety and soundness of institutions and the financial system and the protection of consumer financial rights, as well as fulfilling agency-specific missions, such as conducting monetary policy, promoting financial stability, and
administering federal deposit insurance. The agencies also use Call Report data in evaluating institutions' applications, including interstate merger and acquisition applications. In addition, Call Report data are used by the appropriate agencies to calculate institutions' deposit insurance assessments as well as national banks' and federal savings associations' semiannual assessment fees.
\4\ The OCC charters and supervises national banks and Federal savings associations, and licenses and supervises Federal branches and agencies of foreign banks; the Board supervises state member banks; the FDIC supervises state nonmember banks, state savings associations and state-licensed insured branches, and insures the deposits of all insured depository institutions.
\5\ In addition, U.S. branches and agencies of foreign banks file the Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002).
The agencies recognize that institutions devote staffing and resources in order to complete and file Call Reports. In December 2014, the Federal Financial Institutions Examination Council (FFIEC), which is responsible for developing uniform reporting systems (including the Call Reports) for federally supervised financial institutions,\6\ started an initiative to reduce the reporting burden on small institutions. The FFIEC members developed the following guiding principles to evaluate potential additions and deletions of Call Report data items and other revisions to the Call Reports: (1) Data items serve a long-term regulatory or public policy purpose by assisting the FFIEC members in fulfilling their missions; (2) data items to be collected maximize practical utility and minimize, to the extent practicable and appropriate, burden on financial institutions; and (3) equivalent data items are not readily available through other means.
\6\ See 12 U.S.C. 3305(c). The agencies are members of the FFIEC. The term ``financial institution'' in this context means a commercial bank, savings bank, trust company, savings association, building and loan association, homestead association, cooperative bank, or credit union. 12 U.S.C. 3302(3).
As part of the FFIEC's Call Report burden-reduction initiative, FFIEC members conducted outreach with community banks and industry representatives to better understand what aspects of the Call Report process are significant sources of reporting burden for financial institutions; accelerated the statutorily mandated review of the Call Report; \7\ and evaluated the feasibility and merits of creating a more streamlined Call Report for eligible small institutions.\8\ Based on the response from community banks, trade associations, and public comments, as well as survey results of FFIEC member Call Report data users, in August 2016, the agencies invited public comment on a proposed streamlined version of the Call Report, the FFIEC 051 Call Report.\9\
\7\ See 12 U.S.C. 1817(a)(11). The agencies are statutorily mandated to conduct a review of the information and schedules in the Call Reports every five years, and reduce or eliminate any information or schedules for which the agencies determine continued collection is not required by law and no longer necessary or appropriate. https://www.ffiec.gov/pdf/2017_Interagency_Review_Consolidated_Reports_Condition_Income.pdf.
\8\ The FFIEC published a series of Federal Register notices pursuant to the Paperwork Reduction Act of 1995. See 80 FR 56539 (September 18, 2015) (principles); 81 FR 45357 (July 13, 2016) (burden reduction); 82 FR 2444 (January 9, 2017) (burden reduction and implementation of FFIEC 051); 83 FR 939 (January 8, 2018) (burden reduction); 83 FR 15678 (April 11, 2018) (burden reduction).
\9\ 81 FR 54190 (August 15, 2016).
In June and November 2017, the agencies proposed further reductions to the FFIEC 051 Call Report based on public comments and additional feedback from Call Report data users from the FFIEC members.\10\ The agencies also reviewed suggestions for streamlining the Call Reports provided in comment letters submitted during the public notice and comment period for the agencies' review of regulations required by the Economic Growth and Regulatory Paperwork Reduction Act.\11\ As a result of the further reductions that took effect as of the June 30, 2018, report date, the FFIEC 051 Call Report represents a reduction of approximately 43 percent of the data items and provides for reduced reporting frequency of approximately 6 percent of the data items, as compared to the FFIEC 041 Call Report in use immediately before the implementation of the FFIEC 051 Call Report. Currently, only institutions that have less than $1 billion in total assets, have only domestic offices, are not branches of foreign banks, and are not required or have not elected to use Subpart E of the agencies' regulatory capital rules (applicable to advanced approaches institutions) to calculate their risk-based capital requirements \12\ may use the FFIEC 051 Call Report.
\10\ See 82 FR 29147 (June 27, 2017), 82 FR 51908 (November 8, 2017). These Federal Register notices also contained proposals to reduce data items in the FFIEC 031 and FFIEC 041 Call Reports.
\11\ See 12 U.S.C. 3311.
\12\ See 12 CFR part 3, subpart E (OCC); 12 CFR part 217, subpart E (Board); 12 CFR part 324, subpart E (FDIC). Generally, an institution is an advanced approaches institution if it has consolidated assets of at least $250 billion or if it has consolidated on-balance sheet foreign exposures of at least $10 billion, or if it is a subsidiary of a depository institution, bank holding company, savings and loan holding company, or intermediate holding company that is an advanced approaches banking organization.
Section 205 of EGRRCPA amended section 7(a) of the Federal Deposit Insurance Act (FDI Act) and requires the agencies to issue regulations that allow for a reduced reporting requirement for a covered depository institution when the institution makes the first and third report of condition for a calendar year. Section 205 of EGRRCPA defines ``covered depository institution'' as an insured depository institution ``that-- (i) has less than $5 billion in total consolidated assets; and (ii) satisfies such other criteria as the agencies determine appropriate.'' \13\
\13\ 12 U.S.C. 1817(a)(12)(B).
The proposed rule would implement section 205 of EGRRCPA by expanding the number of insured depository institutions eligible to file the FFIEC 051 Call Report and establishing the reduced reporting in the FFIEC 051 Call Report permissible for such institutions for the first and third reports of condition for a year.\14\ The OCC and Board also are proposing to establish reduced reporting for certain uninsured institutions under their supervision that meet the proposed criteria.
\14\ Under the proposed rule, ``report of condition'' means the FFIEC 031, FFIEC 041, or FFIEC 051 versions of the Consolidated Reports of Condition and Income (Call Report) or the FFIEC 002 report (Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks), as applicable, and as they may be amended or superseded from time to time in accordance with the Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
As discussed below, the agencies propose to implement reduced reporting by expanding the scope of institutions permitted to file the FFIEC 051 Call Report every quarter through the definition of ``covered depository institution.'' As noted, the FFIEC 051 Call Report is the most streamlined version of the Call Report and is familiar to institutions and their Call Report service providers and, therefore could be readily used by covered depository institutions for reduced reporting in the first and third calendar quarters.\15\ In particular, because the FFIEC 051 Call
Report uses the same definitions for data items as other Call Report versions, as well as the same data item identifiers used by the Call Report preparation software products, the agencies anticipate that newly eligible covered depository institutions would be able to file the FFIEC 051 Call Report without the need to make significant changes to their Call Report preparation processes or incur significant cost.\16\ Finally, as discussed below in the PRA section, to implement section 205 of EGRRCPA the agencies are proposing to reduce the number of existing FFIEC 051 Call Report data items required to be reported in the first and third calendar quarters by approximately 37 percent. Accordingly, for all covered depository institutions, filing the FFIEC 051 Call Report would provide an immediate reduction in required reporting without substantial administrative costs.
\15\ Based on June 30, 2018, Call Report data, of the 5,357 institutions with reported total assets below the statutory $5 billion asset threshold, 4,810 or almost 90 percent of those institutions reported less than $1 billion in total assets and are currently eligible to file the FFIEC 051 Call Report based on asset size. Approximately 77 percent of the 4,810 institutions with total assets below $1 billion already file the FFIEC 051 Call Report, and thus would face little to no administrative costs to obtain reduced reporting for the first and third calendar quarters of a year.
\16\ Based on June 30, 2018 Call Report data, 547 institutions that reported total assets of $1 billion or more, but less than $5 billion, could be eligible to file the FFIEC 051 Call Report in 2019 under the proposed rule.
The agencies expect to propose additional reductions to the FFIEC 051 Call Report in connection with the implementation of section 201 of EGRRCPA. Section 201 of EGRRCPA requires the agencies to adopt a community bank leverage ratio in place of the existing regulatory capital rules for qualifying community banks,\17\ which the agencies expect would lead to a reduction in the number of regulatory capital data items that would need to be reported by such institutions. The agencies also will continue to review the data collected on the FFIEC 051 Call Report and seek to reduce the reporting frequency of data items from quarterly to semi-annual where practicable.
\17\ A qualifying community bank is defined as a depository institution or depository holding company with total consolidated assets of less than $10 billion and a risk profile deemed appropriate by the agencies. Under section 201, the agencies may determine whether a community bank qualifies based on consideration of certain risk factors.
Section 205 of EGRRCPA defines ``covered depository institution'' as an insured depository institution ``that-- (i) has less than $5 billion in total consolidated assets; and (ii) satisfies such other criteria as the agencies determine appropriate.'' \18\ The proposed rule would define ``covered depository institution'' as an institution that meets all the following criteria: Has less than $5 billion in total consolidated assets as reported in its report of condition for the second calendar quarter of the preceding calendar year; has no foreign offices; is not required to or has not elected to use Subpart E of the agencies' regulatory capital rules to calculate its risk-based capital requirements; and is not a large or highly complex institution for purposes of the FDIC's assessment regulations. The OCC's definition would also scope out institutions that file the FFIEC 002 report of condition. In addition, the FDIC's definition would exclude state-
licensed insured branches of foreign banks. These other non-asset-size criteria are identical to the current eligibility criteria for institutions with less than $1 billion in total assets to file the FFIEC 051 Call Report except for the criterion related to whether the institution is large or highly complex under the FDIC's assessment regulations.
\18\ 12 U.S.C. 1817(a)(12)(B).
The agencies would allow reduced reporting for ``insured depository institutions'', as such term is defined in section 3 of the FDI Act, 12 U.S.C. 1813, and as required by section 205 of EGRRCPA. The OCC and Board also would extend reduced reporting to certain uninsured institutions that they supervise and that would otherwise meet the same criteria.\19\ Greater parity in the reporting of insured and uninsured national banks and state member banks would be appropriate in light of the similarities between the information used to review the activities of such insured and uninsured institutions. In addition, some uninsured institutions with total assets of less than $1 billion currently file the FFIEC 051 Call Report and, therefore, may continue to use this version of the Call Report under the proposed rule.
\19\ The FDIC only supervises insured state nonmember banks, insured state savings associations, and insured state-licensed branches. Currently, no uninsured Board-regulated institution is eligible to file the FFIEC 051 Call Report, but under the proposal one uninsured Board-regulated institution would meet the proposed criteria for eligibility to file the FFIEC 051 Call Report. The OCC supervises 49 uninsured institutions that currently are eligible to file the FFIEC 051 Call Report, which would increase to 50 under the proposed rule.
The proposed rule would define ``total consolidated assets'' as total assets as reported in an institution's report of condition. An institution would determine whether it meets the asset-size criterion and is eligible to file the FFIEC 051 Call Report based on the total assets it reported in its report of condition (Schedule RC, Item 12 in the Call Reports), which is calculated on a consolidated basis, in the institution's report of condition for the second calendar quarter of the previous calendar year. This approach is consistent with the current FFIEC 051 Call Report instructions for determining eligibility to file the FFIEC 051 Call Report based on asset size.\20\
\20\ See FFIEC 051 instructions, available at https://www.ffiec.gov/pdf/FFIEC_forms/FFIEC051_201806_i.pdf.
The agencies are also proposing that an institution satisfy other criteria to be eligible for reduced reporting, consistent with section 205. These other criteria are based on an institution's
international activities, its treatment under the agencies' regulatory capital rules, and its treatment under the FDIC's deposit insurance assessment regulations. These non-asset-size criteria are identical to the current eligibility criteria for institutions with less than $1 billion in total assets to file the FFIEC 051 Call Report with the exception of the criterion related to treatment under the FDIC's assessment regulations. Unlike the asset-size criterion, which is determined as of the report of condition filed for the second calendar quarter (as of June 30) of the prior calendar year, an institution would determine in each calendar quarter whether it meets all of these non-asset-size criteria. If in any calendar quarter an institution no longer meets all of these other criteria, then the institution would become ineligible to file the FFIEC 051 Call Report beginning the quarter in which the institution failed to meet one of the non-asset-
size criteria. In contrast to failing the asset-size criterion, failing to meet the non-asset-size criteria often reflects a significant change in the operations of an institution as a result of deliberate planning, such as opening a foreign branch or becoming subject to a different approach under the agencies' regulatory capital rules. Therefore, in contrast to the asset-size criterion, the proposed rule does not include a grace period for non-asset-size criteria.
International Activities. The proposal would exclude from the definition of ``covered depository institution'' an institution that has foreign offices or that is an insured branch of a foreign bank. These criteria are identical to the current eligibility criteria that exclude these institutions from being eligible to file the FFIEC 051 Call Report. Foreign offices would be defined as: Branches or consolidated subsidiaries in foreign countries \21\ unless located on a U.S. military facility; international banking facilities as defined under 12 CFR 204.8; majority-owned Edge Act and Agreement \22\ subsidiaries; and branches or consolidated subsidiaries in U.S. territories if the bank is chartered or headquartered in a U.S. state or the District of Columbia. Insured branches of foreign banks would be those branches defined in section 3(s) of the FDI Act, 12 U.S.C. 1813(s), which file the FFIEC 002 version of the report of condition. The agencies believe it is appropriate to exclude these institutions from the proposal because the nature of these international activities requires more comprehensive and detailed financial information to effectively supervise and monitor them.\23\ This comprehensive information related to foreign activities is required to be reported in the FFIEC 002 report of condition. For example, institutions that have foreign offices may present risks, such as currency risk and country-
specific risks, for which supervisors require additional financial information to ensure appropriate monitoring and supervision. Permitting these institutions to receive reduced reporting on the FFIEC 051 Call Report would impair the agencies' existing supervision of these institutions.
\21\ The proposed rule would define ``foreign country'' to refer to one or more foreign nations, and include the overseas territories, dependencies, and insular possessions of those nations and of the United States. This definition also is used in the Board's Regulation K, 12 CFR part 211.
\22\ 12 CFR 211.1(c)(2) and (3).
\23\ Depository institutions with foreign offices are currently required to file the FFIEC 031 Call Report and thus are not currently eligible to file the FFIEC 051. Branches of foreign banks (both Federally and State-licensed), are required to file the FFIEC 002 version of the report of condition.
Advanced Approaches Institutions. The proposal would exclude from the definition of ``covered depository institution'' an institution that is required to, or has elected to, use Subpart E of the agencies' regulatory capital rules to calculate its risk-based capital requirements (advanced approaches institution). In general, an advanced approaches institution is an institution that has consolidated total assets equal to $250 billion or more, has consolidated total on-balance sheet foreign exposure equal to $10 billion or more, or is a subsidiary of a depository institution or holding company that uses the advanced approaches to calculate its total-risk weighted assets.\24\ Advanced approaches institutions currently are precluded from filing the FFIEC 051 Call Report. Advanced approaches institutions generally must calculate their regulatory capital requirements under the advanced approaches, which relies in part on internal models and complex formulas, and are subject to additional requirements such as the supplementary leverage ratio.\25\ While advanced approaches holding companies typically have total assets of more than $250 billion, their depository institution subsidiaries also generally are subject to the advanced approaches, some of which may have total assets of less than $5 billion. Some of these subsidiaries often engage in specialized or highly complex activities that require more comprehensive and detailed financial information to ensure effective supervision and monitoring.
\24\ See 12 CFR 3.100(b) (OCC); 217.100(b) (Board); 324.100(b) (FDIC).
\25\ See 12 CFR part 3, subpart E and 12 CFR 3.10(c)(4) (OCC); 12 CFR part 217, subpart E and 12 CFR 217.10(c)(4) (Board); 12 CFR part 324, subpart E and 12 CFR 324.10(c)(4) (FDIC).
Institutions Assessed as Large or Highly Complex by the FDIC. Finally, the agencies propose to exclude from the definition of ``covered depository institution'' an insured depository institution that is assessed as a ``large institution'' or ``highly complex institution,'' as defined in the FDIC's deposit insurance assessment regulations.\26\
\26\ See 12 CFR 327.8(e), (f), (g) and (s). For the purposes of the FDIC's assessment regulations, a ``small institution'' generally is an insured depository institution with less than $10 billion in total assets. Generally, a ``large institution'' is an insured depository institution with more than $10 billion in total assets or that is treated as a large institution for assessment purposes under section 327.16(f). Generally, a ``highly complex institution'' is: (i) An insured depository institution (excluding a credit card bank) that has had $50 billion or more in total assets for at least four consecutive quarters, is controlled by a U.S. parent holding company that has had $500 billion or more in total assets for four consecutive quarters, or is controlled by one or more intermediate U.S. parent holding companies that are controlled by a U.S. holding company that has had $500 billion or more in assets for four consecutive quarters; or (ii) a processing bank or trust company. However, an institution with assets between $5 billion and $10 billion may request treatment for deposit insurance assessments as a large institution, and few institutions have made this request to date. See 12 CFR 327.16(f).
Under the FDIC's assessment regulations, large and highly complex institutions are assessed using combined CAMELS \27\ ratings and certain forward-looking financial measures to assess the risks such institutions pose to the Deposit Insurance Fund.\28\ The FDIC uses the data reported by a large or highly complex institution on either the FFIEC 031 or FFIEC 041 Call Report, as appropriate, to calculate the institution's assessment rate. For example, the FDIC uses data on Schedule RC-O regarding higher-risk assets, which are not reported on the FFIEC 051 Call Report, to calculate financial ratios used to determine a large or highly complex institution's assessment rate.
\27\ A financial institution is assigned a ``CAMELS'' composite rating based on an evaluation and rating of six essential components of an institution's financial condition and operations. These component factors address the: Adequacy of capital (C); quality of assets (A); capability of management (M); quality and level of earnings (E); adequacy of liquidity (L); and sensitivity to market risk (S).
\28\ See 12 CFR 327.16(b) and (c); 76 FR 10672, 10688-10698 (February 25, 2011).
Under the FDIC's assessments regulations, an institution that increases or decreases in asset size is reclassified as a small institution, large institution, or highly complex institution generally after such institution reports assets of less than $10 billion, $10 billion or more, or more than $50 billion,
respectively, for four consecutive quarters.\29\ Because reclassification requires that the institution report above or below a certain asset-based threshold for four consecutive quarters, there may be a period of time in which an institution would otherwise be eligible for reduced reporting by filing the FFIEC 051 Call Report because it met the asset-size criterion, but is assessed as a large or highly complex institution. Although this situation is likely to be rare, without this criterion such institution would be eligible to file the FFIEC 051 Call Report with its reduced reporting under the proposed rule. For example, an institution that had been reporting more than $10 billion in assets and was assessed as a ``large institution'' as of March 31, 2018, could decrease in size such that its total assets, as of June 30, 2018, were below $5 billion. If that institution met the other non-asset-size criteria discussed above, then that institution could be eligible to file the FFIEC 051 Call Report in the 2019 calendar year, including reduced reporting in the first and third calendar quarters of 2019. However, such an institution would continue to be assessed as a large institution and would not be reclassified as a ``small institution'' for deposit insurance assessments until it reported total assets below $10 billion for four consecutive quarters. Therefore, as long as the institution continues to be assessed as a ``large institution,'' it would be ineligible to file the FFIEC 051 Call Report, including its reduced reporting, until it was reclassified for deposit insurance assessments and assessed as a ``small institution'' (i.e., beginning with the third calendar quarter in 2019).
\29\ Under the FDIC's assessment regulations, an insured depository institution can be reclassified as a highly complex institution because they meet the definition of a ``processing bank or trust company.'' Under that definition, an insured depository institution would need to, among other things, have total assets of $10 billion or more for at least four consecutive quarters. See 12 CFR 327.8(s).
In addition to expanding the number of institutions eligible to file the FFIEC 051 Call Report, the agencies propose to implement the reduced reporting required by section 205 of EGRRCPA by further reducing the reporting required on the FFIEC 051 Call Report for all covered depository institutions in the first and third calendar quarters. The agencies propose to achieve this by reducing the frequency of reporting in the FFIEC 051 Call Report for approximately 37 percent of the existing data items in this report--from quarterly to semiannual--as described in the PRA section below. The principal areas of reduced reporting in the first and third quarters include data items related to categories of risk-weighting of various types of assets and other exposures under the agencies' regulatory capital rules, fiduciary and related services assets and income, and troubled debt restructurings by loan category. This reduction in frequency for certain data items would provide all covered depository institutions, including those with less than $1 billion in total assets that currently file the FFIEC 051 Call Report, with further reduced reporting in the first and third calendar quarters.
If, after considering such factors, the appropriate Federal banking agency determines that the covered depository institution should be required to file the
FFIEC 041 Call Report, the appropriate Federal banking agency would provide written notice to the covered depository institution prior to the filing requirement's becoming effective. Any covered depository institution eligible to file the FFIEC 051 Call Report, but that is required by its appropriate Federal banking agency to file the FFIEC 041 Call Report under the reservation of authority, would be required to continue to file the FFIEC 041 Call Report until the appropriate Federal banking agency provides written notice to the covered depository institution that it is no longer required to file the FFIEC 041 Call Report. The justification for use of the reservation and its terms will also be provided in the notice.
The proposed rule is expected to broaden the number of institutions that may file the FFIEC 051 Call Report and be eligible for reduced reporting in the first and third calendar quarters.\30\ Based on June 30, 2018, Call Report data, 5,357 institutions reported total assets of less than $5 billion. Of these, 547 institutions reported total assets of $1 billion or more, but less than $5 billion, and are currently ineligible to file the FFIEC 051 Call Report in 2019, but would meet the definition of ``covered depository institution'' under the proposed rule. For 533 of these 547 institutions, this would mark the first time such institution is eligible to file the FFIEC 051 Call Report.\31\ Overall, each of the 5,357 institutions that reported less than $5 billion in total assets in their Call Report as of June 30, 2018, and that would qualify as a ``covered depository institution'' under the proposed rule, could file the FFIEC 051 Call Report and report approximately 37 percent fewer data items in the first and third calendar quarters than in the current FFIEC 051 Call Report.
\30\ The proposed rule allows reduced reporting for covered depository institutions, but does not mandate that any institution file the FFIEC 051 Call Report. Based on June 30, 2018, Call Report data, approximately 77 percent of currently eligible institutions that reported total assets of less than $1 billion elected to file the FFIEC 051 Call Report.
\31\ Fourteen institutions currently file the FFIEC 051 Call Report, but reported assets of $1 billion or more, but less than $5 billion on their Call Report as of June 30, 2018. Under the current Call Report instructions, these institutions would not be eligible to file the FFIEC 051 Call Report in 2019. However, under the proposed rule, these institutions would meet the definition of ``covered depository institution'' and, therefore, could continue to file the FFIEC 051 Call Report in 2019 (assuming they continue to meet the non-asset-size criteria).
The agencies estimate the average quarterly reporting burden hours per institution for the current FFIEC 041 and FFIEC 051 Call Reports are 64.49 hours and 52.31 hours, respectively, for institutions that would become eligible to file the FFIEC 051 Call Report in 2019. Thus, each covered depository institution that switches from filing the current FFIEC 041 Call Report to the FFIEC 051 Call Report (amended as proposed in the PRA section) is expected to save, on average, 12.18 hours per quarter. Assuming that newly eligible covered depository institutions would file the FFIEC 051 Call Report at the same rate as currently eligible institutions file the FFIEC 051 Call Report (77 percent), the agencies estimate a total reporting burden reduction of 5,130 hours per quarter for these institutions.\32\
\32\ Calculated as 12.18 burden hours multiplied by 77 percent of 547 institutions that would be eligible under the proposed rule. Covered depository institutions could file the FFIEC 051 Call Report at a higher rate than the current 77 percent participation level, particularly due to the opportunity under the proposed rule to obtain additional reporting relief in the first and third calendar quarters.
The proposed rule also provides for reduced reporting in the first and third calendar quarters for covered depository institutions. As discussed below in the PRA section, the agencies are proposing to remove approximately 37 percent of data items from being reported in the FFIEC 051 Call Report for covered depository institutions in the first and third calendar quarters. The principal areas of reduced reporting in the first and third calendar quarters include data items related to categories of risk-weighting of various types of assets and other exposures under the agencies' regulatory capital rules, fiduciary and related service assets and income, and troubled debt restructurings by loan category. These data items are currently collected every calendar quarter on the FFIEC 051 Call Report. Every covered depository institution that files the FFIEC 051 Call Report would experience a reduction in reporting for the first and third calendar quarters as a result of this aspect of the proposed rule. The agencies estimate that the proposed removal of approximately 37 percent of data items from the reporting requirements of covered depository institutions in the first and third calendar quarters would reduce the average quarterly reporting burden by 1.18 hours for the 3,714 institutions that filed the FFIEC 051 Call Report for the June 30, 2018, report date. This represents a total estimated burden reduction of 4,383 hours per quarter for these institutions.\33\
\33\ 1.18 hours * 3,714 FFIEC 051 Call Report filers for the report dated June 30, 2018.
As also discussed below in the PRA section, the agencies are proposing to add certain data items to the FFIEC 051 Call Report for covered depository institutions with $1 billion or more, but less than $5 billion, in total assets. Based on Call Report data as of June 30, 2018, 533 institutions with $1 billion or more, but less than $5 billion, currently file the FFIEC 041 Call Report, but would meet the definition of ``covered depository institution'' under the proposed rule. Because these 533 institutions already report these data items on the FFIEC 041 Call Report, the proposed addition of these data items to the FFIEC 051 Call Report for these institutions would not represent an increase in reporting burden as these institutions would experience an overall net decrease in reporting burden by switching to the FFIEC 051 Call Report. Furthermore, only one of these items would be collected quarterly; the other items would be collected semiannually or annually. In addition, these data items would not be required to be completed by institutions with less than $1 billion in total assets that file the FFIEC 041 or FFIEC 051 Call Reports, so institutions that are currently eligible to file the FFIEC 051 Call Report would not be affected by the addition of these items.
Based on the agencies' total hourly wage rate for Call Report preparation of $117 and the reduction in reporting hours resulting from the proposed reduced reporting discussed in the PRA section, it is estimated that reporting costs could be $600,210 less each quarter, on average, for the 547 eligible institutions that reported $1 billion or more, but less than $5 billion, in total assets on their June 30, 2018, Call Report.\34\ Also, the agencies estimate that reporting costs could be $512,811 less each quarter, on average, for the 3,714 institutions that filed the FFIEC 051 Call Report for June 30, 2018.\35\ In sum, the proposed changes to the FFIEC 051 Call Report that are discussed below
in the PRA section could reduce annual reporting costs by an estimated $4,452,084, or 0.008 percent of total annualized non-interest expenses, for institutions that reported total assets of less than $5 billion on the Call Report as of the June 30, 2018, and either filed the FFIEC 051 Call Report, or filed the FFIEC 041 Call Report but are expected to file the FFIEC 051 Call Report, under the proposed rule beginning in 2019.\36\
\34\ $117 per hour * 5,130 hours per quarter.
\35\ $117 per hour * 4,383 hours per quarter.
\36\ $117 per hour * 5,130 hours per quarter + 4,383 hours per quarter * 4 quarters per year.
Alternative 2: Create a new, separate Call Report form for ``covered depository institutions.'' The agencies also considered creating a new, separate Call Report for covered depository institutions that would provide for reduced reporting in the first and third calendar quarters. The agencies believed that, while such an approach may appear simple to do, creating an entirely separate form only two years after the implementation of the new FFIEC 051 Call Report could lead to confusion about which form to file, especially because the criteria for filing the form likely would have been very similar to the current eligibility criteria for filing the FFIEC 051 Call Report. Also, this approach could result in institutions having to reorganize their reporting systems and processes to accommodate their use of a new form and incur costs and administrative burden in doing so. Because the proposed rule is intended to reduce burden on smaller, less complex institutions, the agencies determined that producing a new Call Report would not be the most efficient option. Additionally, the agencies recognized that they would require significant time to develop and publish an entirely new Call Report form, which would delay the regulatory reporting relief proposed in the rule.
Question 7: Is the proposed extension of the reduced reporting requirement to
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include uninsured state member banks that meet the same eligibility criteria appropriate? Would any of the proposed exclusionary criteria for covered depository institutions be problematic for uninsured state member banks?
The FDIC proposes to amend Part 304 of its Rules and Regulations, by restructuring the regulation and creating a ``Subpart A'' and ``Subpart B.'' In Subpart A, the FDIC would put the current text of Part 304, with limited technical, non-substantive changes. The technical, non-substantive changes include: (1) Updating the address and contact information in section 304.2; (2) clarifying that sections 304.3(a) and (b) apply to insured depository institutions; (3) updating references in section 304.3(a) to the various Call Reports to include the recently implemented FFIEC 051 Call Report; and (4) updating the references to FDIC divisions to reflect changes in nomenclature. In Subpart B, the FDIC proposes to include the regulatory text implementing Section 205.
Certain provisions of the proposed rule affect ``collections of information'' within the meaning of the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-3521). In accordance with the requirements of the PRA, the agencies may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number.
First, as described above, the agencies are proposing to revise the criteria for determining whether an institution is eligible to file the FFIEC 051 Call Report to match the criteria in the proposed rule. While the proposed rule provides for reduced reporting on reports filed for the first and third calendar quarters, the agencies also propose to revise the eligibility criteria to extend to all eligible institutions with less than $5 billion in total assets that meet other criteria in the rule the option to file the FFIEC 051 Call Report for all four calendar quarters. Therefore, if an institution is eligible to file the FFIEC 051 Call Report for the first and third calendar quarters pursuant to the rule, the institution also could file the FFIEC 051 Call Report for the second and fourth calendar quarters provided the institution continues to meet the non-asset-size criteria. The revisions to the filing eligibility would be made in the General Instructions section of the Call Report instructions and would include the increase in the asset-size threshold to less than $5 billion in total assets as well as the addition of a criterion to exclude institutions that are treated as large or highly complex institutions for deposit insurance assessment purposes. The Call Report instructions currently provide that, beginning with the first quarterly report date following the effective date of a business combination, a transaction between entities under common control, or a branch acquisition that is not a business combination involving an institution and one or more other depository institutions, the resulting institution, regardless of its size prior to the transaction, must file the FFIEC 041 Call Report if its consolidated total assets after the consummation of the transaction are $1 billion or more. The agencies are proposing to remove this provision from the instructions, but the resulting institution may be required to file the FFIEC 041 Call Report consistent with the reservation of authority in the rule. All of the proposed FFIEC 051 Call Report eligibility criteria, along with justifications, are provided above in section II.A. of the Supplementary Information section (``Covered Depository Institution''). Based on June 30, 2018, Call Report data, there were 547 institutions with $1 billion or more, but less than $5 billion in total assets that likely would meet the definition of ``covered depository institution'' in the proposed rule.
Second, the agencies are proposing to revise the reporting frequency and
applicability of certain data items in the FFIEC 051 Call Report. Specifically, the agencies are proposing to reduce the reporting frequency of certain existing data items in the FFIEC 051 Call Report from quarterly to semiannual reporting. This proposal would reduce reporting in the first and third calendar quarters by 502 data items \37\ or a reduction of approximately 37 percent of the data items included in the June 30, 2018, FFIEC 051 Call Report.
\37\ This number includes 69 data items collected on Schedule RC-T, Fiduciary and Related Services, that are only reported by certain institutions with fiduciary powers that have fiduciary activity to report.
Schedule RC-R, Part II, Regulatory Capital Risk-Weighted Assets, items 1 through 25, columns A through S. In these items, institutions currently report detailed information about the risk-
weighting of various types of assets and other exposures under the agencies' regulatory capital rules. Institutions still would need to calculate risk-weighted assets, maintain appropriate documentation for this calculation, and report items 26 through 31 of Part II, if applicable, on a quarterly basis. The agencies do not believe it is necessary for institutions eligible to file the FFIEC 051 Call Report to continue to provide the details of their risk-weighting allocations and calculations in Schedule RC-R, Part II, on a quarterly basis as the agencies can adequately review regulatory capital calculations for the first and third calendar quarters as part of on-site examinations or through other types of periodic monitoring, as necessary.
Schedule RC-R, Part II, Memorandum items 1 through 3, including all subitems and columns. Institutions currently report detailed information in these items about derivative exposures that are elements of the risk-weighting process for these exposures. The agencies do not believe it is necessary for institutions eligible to file the FFIEC 051 Call Report to continue to report these amounts on a quarterly basis. Generally, institutions eligible to file the FFIEC 051 Call Report do not have a significant amount of derivatives contracts, and the agencies can review information about institutions' risk-
weighting calculations for derivative exposures for the first and third calendar quarters, as necessary, as part of on-site examinations or through other periodic monitoring.
Schedule RC-T, Fiduciary and Related Services, items 4 through 13, columns A through D; items 14 through 22; and Memorandum items 3.a through 3.h, for institutions with total fiduciary assets greater than $250 million but less than or equal to $1 billion, and gross fiduciary and related services income less than or equal to 10 percent of total revenue.\38\ Items 4 through 13 collect breakdowns for managed and non-managed accounts of the assets and number of accounts by type of fiduciary account. Fiduciary and related services income by type of fiduciary account is reported in items 14 and 22. Memorandum item 3 is used for reporting on the number and market
value of collective investment funds. Currently, institutions with total fiduciary assets greater than $250 million or with fiduciary income greater than 10 percent of total revenue must report these items on a quarterly basis. The proposed change would reduce the reporting of these items to semiannual for institutions with total fiduciary assets greater than $250 million but less than or equal to $1 billion and with fiduciary income less than or equal to 10 percent of total revenue. Institutions with total fiduciary assets less than or equal to $250 million that do not meet the fiduciary income test already have reduced reporting for these items (either through an exemption or annual reporting). The agencies do not believe it is necessary for institutions eligible to file the FFIEC 051 Call Report with total fiduciary assets greater than $250 million but less than or equal to $1 billion that do not meet the fiduciary income test to continue to provide managed and non-managed account data and collective investment fund information on a quarterly basis, as these items generally do not fluctuate significantly between quarters for institutions with fiduciary assets in this size range. In addition, when quarter-to-
quarter and year-over-year comparisons of an institution's year-to-date income from fiduciary activities, as reported in the Call Report income statement, raise supervisory concerns, the agencies can review information on the composition of fiduciary income for the first and third calendar quarters as part of on-site examinations or through other periodic monitoring.
\38\ Total fiduciary assets are measured as of the preceding December 31. Gross fiduciary and related services income is measured as a percentage of revenue (net interest income plus noninterest income) for the preceding calendar year.
Schedule RI-C, Disaggregated Data on the Allowance for Loan and Lease Losses (ALLL). The agencies are proposing to add a condensed version of the existing FFIEC 041 Schedule RI-C to the FFIEC 051 Call Report and reduce the reporting frequency of this condensed schedule from quarterly to semiannual (i.e., reported in the June 30 and December 31 Call Reports only). The existing six columns in which institutions report the ``recorded investment'' and ``related allowance'' by loan category and allowance measurement method in Schedule RI-C in the FFIEC 041 Call Report would be combined into two columns in the FFIEC 051 Call Report, one for total recorded investment by loan category (sum of existing Columns A, C, and E) and the other for the total related allowance by loan category (sum of existing Columns B, D, and F) and any unallocated allowance. Consistent with the agencies' proposed revisions to the Call Report to address the changes in the accounting for credit losses resulting from the Financial Accounting Standards Board's Accounting Standards Update 2016-13,\39\ effective for the June 30, 2021, report date, text referencing ``recorded investment'' and ``allowance for loan and lease losses'' in the condensed version of the FFIEC 041 Schedule RI-C that would be added to the FFIEC 051 reporting form would be changed to ``amortized cost'' and ``allowance for credit losses'' (ACL), respectively.\40\ From June 30, 2019, through December 31, 2020, the condensed allowance-
related information on the FFIEC 051 Call Report and the related instructions would include guidance stating that institutions that have adopted ASU 2016-13 should report the amortized cost and related ACL by loan category (and any unallocated ACL). For the transition period from June 30, 2021, through December 31, 2022, the reporting form and instructions for this condensed allowance-related information would be updated to include guidance stating that institutions that have not adopted ASU 2016-13 should report the ``recorded investment'' and the ``allowance for loan and lease losses,'' as applicable, in these items. In addition, consistent with the proposed revisions to address the changes in accounting for credit losses, the agencies also propose adding data items for institutions to report the disaggregated allowance balances for each category of held-to-maturity (HTM) securities to the FFIEC 051. The agencies believe the condensed semiannual information on the composition of ALLL (allowance for credit losses after adoption of ASU 2016-13) in relation to the total
recorded investment (amortized cost after adoption of ASU 2016-13) for each loan category, and disaggregated information on HTM securities allowances, is necessary to adequately supervise covered depository institutions with total assets of $1 billion or more but less than $5 billion. The information collected in Schedule RI-C as it is proposed to be included in the FFIEC 051 Call Report will support the agencies' analyses of the allowance and credit risk management. The data on allowance allocations by loan category, when reviewed in conjunction with the past due and nonaccrual data reported by loan category in Schedule RC-N, which will continue to be reported on a quarterly basis, assist the agencies in assessing an institution's credit risk exposures and evaluating the appropriateness of the overall level of its ALLL and its allocations by loan category. If changes in the quarterly past due and nonaccrual data by loan category at individual institutions in quarters when the disaggregated allowance data would not be reported in the FFIEC 051 Call Report raise questions about the composition of the allowance, supervisory follow-up can be undertaken on a case-by-case basis. The agencies note that many institutions with $1 billion or more but less than $5 billion in total assets do not publicly release quarterly financial statements, which makes the Call Report data the only information regularly available to the agencies on the composition of the allowance. By providing this detail in the FFIEC 051 Call Report, which supports the identification of changes in the ALLL over time, examiners can better perform off-site monitoring of activity within the ALLL in periods between examinations and when planning for examinations.
\39\ See 83 FR 49160 (September 28, 2018).
\40\ The amortized cost amounts to be reported would exclude any accrued interest receivable that is reported in ``Other assets'' on the Call Report balance sheet.
Schedule RC-E, Memorandum items 6 and 7, including all subitems. Institutions report disaggregated data on balances in consumer and non-consumer deposit accounts in these items. These items are critical to the agencies' and the Bureau's consumer deposit product monitoring and rulemaking mandates for several reasons. As noted in the agencies' 2013 notice \41\ proposing the addition of these items to the Call Report, surveys indicate that over 90 percent of U.S. households maintain at least one deposit account. However, there are no other reliable sources from which to calculate the amount of funds held in consumer accounts. The data now reported in these items on the Call Report significantly enhances the ability of the agencies and the Bureau to monitor how different tiers of banks serve consumers and, specifically, consumer use of deposit accounts as transactional, savings, and investment vehicles. These data also permit the agencies to conduct improved assessments of institutional liquidity risk and significantly enhance the agencies' ability to assess institutional funding stability. The agencies are proposing to add these items to the FFIEC 051 on an annual basis (December 31) for institutions with total assets of $1 billion or more but less than $5 billion that respond affirmatively to the screening question (Schedule RC-E, Memorandum item 5, regarding whether an institution offers a consumer deposit account product), while banks with total assets less than $1 billion will not need to report these items regardless of their response to the screening question. Institutions with total assets of $1 billion or more but less than $5 billion that file the FFIEC 041 currently report this information quarterly, so the proposed annual reporting would represent a frequency reduction for institutions filing the FFIEC 051, while still meeting the agencies' need for this information.
\41\ 78 FR 12141 (February 21, 2013).
Schedule RC-O, Other Data for Deposit Insurance and FICO Assessments, Memorandum item 2, ``Estimated amount of uninsured deposits, including related interest accrued and unpaid.'' The agencies are proposing to add this data item on a quarterly basis for institutions with total assets of $1 billion or more but less than $5 billion. The FDIC uses this data item for the calculation of estimated insured deposits, which is the denominator of the Deposit Insurance Fund (DIF) reserve ratio. (The numerator is the balance of the DIF.) The DIF reserve ratio is a key measure in assessing the adequacy and viability of the fund and is a driving force behind setting deposit insurance assessment rate schedules. For example, the FDIC evaluates whether assessment rates are likely to be sufficient to meet statutory requirements related to the minimum reserve ratio.\42\ The FDIC also has established a long-term DIF management plan that adjusts assessment rate schedules as the reserve ratio reaches certain levels.\43\ Given that assessment regulations depend on the DIF reserve ratio, it is important that the best information be used in estimating insured deposits. This item is necessary for a more accurate calculation of the DIF reserve ratio and to implement related statutory requirements. This information is also important for safety and soundness purposes. Uninsured deposit data are used to monitor liquidity in a stress event. The higher the percentage of uninsured deposits to available liquidity sources, the greater the liquidity risk to an institution as uninsured depositors are more likely to quickly move funds at risk as a result of negative publicity or other adverse information about the institution.
\42\ See e.g., 12 U.S.C. 1817 note. Generally, the FDIC shall take such steps as may be necessary for the reserve ratio of the DIF to reach 1.35 percent of estimated insured deposits by September 30, 2020.
\43\ See 12 CFR 327.10.
Whether institutions would find the proposal to reduce the reporting frequency of the risk-weighting data for the various types of assets and other exposures that are reported in Schedule RC-R, Part II, items 1 through 25, columns A through S, to be beneficial in terms of reducing some of the reporting burden associated with the Call Report even though institutions would still need to calculate, maintain appropriate documentation for, and report the total amount of their risk-weighted assets in Schedule RC-R, Part II. How would semiannual reporting of these risk-weighting data in Schedule RC-R, Part II affect an institution's ability to determine its compliance each calendar quarter with the prompt corrective action requirements in 12 CFR part 6 (OCC); 12 CFR part 208 (Board); 12 CFR 324, subpart H (FDIC)?
Whether the data items that the agencies propose for reduced reporting for covered depository institutions are appropriate. Why or why not?
The agencies are proposing to discontinue the treatment in the current FFIEC 051 Call Report instructions for institutions with less than $1 billion in total assets that immediately disqualifies the institution from filing the FFIEC 051 Call Report if it exceeds the asset-size criterion due to a merger or acquisition. Is this appropriate and why?
Whether the collection of information is necessary for the proper performance of the agencies' functions, including whether the information has practical utility;
The accuracy or the estimate of the burden of the information collections, including the validity of the methodology and assumptions used;
Ways to minimize the burden of the information collections on respondents, including through the use of automated collection techniques or other forms of information technology; and
Estimates of capital or startup costs and costs of operation, maintenance, and purchase of services to provide information.
The Regulatory Flexibility Act \44\ (RFA) requires an agency to either provide an initial regulatory flexibility analysis with a proposed rule for which general notice of proposed rulemaking is required or to certify that the proposed rule will not have a significant economic impact on a substantial number of small entities. The U.S. Small Business Administration (SBA) establishes size standards that define which entities are small businesses for purposes of the RFA.\45\ Under regulations issued by the SBA, the size standard to be considered a small business for banking entities subject to the proposed rule is $550 million or less in consolidated assets.\46\
\45\ U.S. SBA, Table of Small Business Size Standards Matched to North American Industry Classification System Codes, available at https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf.
\46\ See 13 CFR 121.201.
Board: In accordance with section 603(a) of the RFA, the Board is publishing an initial regulatory flexibility analysis for the proposed rule. The RFA requires an agency to prepare an initial regulatory flexibility analysis, which must contain (1) a description of the reasons why action by the agency is being considered; (2) a succinct statement of the objectives of, and legal basis for, the proposed rule; (3) a description of and, where feasible, an estimate of the number of small entities to which the proposed rule will apply; (4) a description of the projected reporting, recordkeeping and other compliance requirements of the proposed rule; (5) an identification, to the extent practicable, of all relevant Federal rules which may duplicate, overlap or conflict with the proposed rule; and (6) a description of significant alternatives to the proposed rule which accomplish its stated objectives.\47\
\47\ 5 U.S.C. 603.
The Board has considered the potential impact of the proposed rule on small entities in accordance with the RFA. Based on its analysis and for the
reasons stated below, the Board believes that this proposed rule will not have a significant economic impact on a substantial number of small entities. Nevertheless, the Board is publishing and inviting comment on this initial regulatory flexibility analysis. A final regulatory flexibility analysis will be conducted after comments received during the public comment period have been considered.
As discussed in the Supplementary Information, the agencies are proposing to implement section 205 of EGRRCPA, which requires the agencies to allow for a reduced reporting requirement for a ``covered depository institution'' when an institution files the first and third Call Reports for a year. The proposal would define ``covered depository institution'' and establish the reduced reporting permissible for such institutions in the Call Report for the first and third calendar quarters of a year. In connection with the implementation of reduced reporting mandated by section 205, the Board is proposing to set forth the general requirement that all state member banks must file consolidated reports of condition pursuant to its statutory authority under section 9 of the FRA and section 7(a)(3) of the FDIA.
Description of Small Entities to Which the Regulation Applies
FDIC: The RFA requires that, in connection with a notice of proposed rulemaking, an agency prepare and make available for public comment an initial regulatory flexibility analysis that describes the impact of the proposed rule on small entities.\48\ However, a regulatory flexibility analysis is not required if the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities, and publishes its certification and a short explanatory statement in the Federal Register together with the rule. The SBA has defined ``small entities'' to include banking organizations with total assets of less than or equal to $550 million.\49\
\49\ The SBA defines a small banking organization as having $550 million or less in assets, where ``a financial institution's assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year.'' See 13 CFR 121.201 (as amended, effective December 2, 2014). ``SBA counts the receipts, employees, or other measure of size of the concern whose size is at issue and all of its domestic and foreign affiliates.'' See 13 CFR 121.103. Following these regulations, the FDIC uses a covered entity's affiliated and acquired assets, averaged over the preceding four quarters, to determine whether the covered entity is ``small'' for the purposes of RFA.
As the agencies discussed in the Supplementary Information section above, the proposed rule would implement section 205 of EGRRCPA by defining ``covered depository institution'' to, among other things, expand eligibility for filing the FFIEC 051 Call Report to insured depository institutions with $1 billion or more, but less than $5 billion in total assets. Through a related PRA notice, the agencies are proposing to reduce the reporting frequency for more than 400 data items on the FFIEC 051 Call Report for the first and third reports of condition for a year, and to add certain data items to the FFIEC 051 Call Report that would apply only to covered depository institutions with total assets of $1 billion or more. Out of the additional data items, only 1 would be required to be reported every quarter, while the remaining only would be required semiannually or annually (i.e., in the second and fourth quarters, or only the fourth quarter).
The FDIC estimates that under the proposed definition of ``covered depository institution,'' 295 FDIC-supervised depository institutions that reported total assets of $1 billion or more, but less than $5 billion, could be eligible to file the FFIEC 051 Call Report assuming they meet the other non-asset-
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size criteria under the proposed rule. However, because this aspect of the rule only affects institutions with $1 billion or more, but less than $5 billion in total assets, it will not affect any small, FDIC-
As the agencies discussed in the PRA section, the FDIC is proposing to reduce the reporting frequency of more than 400 data items on the FFIEC 051 Call Report for the first and third calendar quarters. These data items are currently collected every calendar quarter on the FFIEC 051 Call Report. Every covered depository institution with less than $5 billion in total assets that files the FFIEC 051 Call Report would experience a reduction in reporting for the first and third calendar quarters as a result of this proposal. The FDIC estimates that the proposed reduction in reporting frequency of more than 400 data items for covered depository institutions in the first and third calendar quarters would reduce the average quarterly burden hours by 1.18 hours per institution. For the 2,221 small, FDIC-supervised depository institutions that filed the FFIEC 051 Call Report for the June 30, 2018 report date, this represents a total estimated burden reduction of 2,621 hours per quarter.\50\ While the proposed reduced reporting could affect a substantial number of small, FDIC-supervised depository institutions, it would not result in a significant economic impact.
\50\ 1.18 hours * 2,221 institutions.
Based on the agencies' total hourly wage rate of $117 for Call Report preparation, and the reduction in reporting hours resulting from the proposed reduced reporting frequency of certain items in the FFIEC 051 Call Report discussed in the PRA section, it is estimated that annual reporting costs could be $1,226,628 less for small, FDIC-
supervised insured depository institutions that file the FFIEC 051 Call Report, or 0.011 percent of total annualized non-interest expenses.\51\
\51\ $117 per hour * 2,621 hours per quarter * 4 quarters per year. FDIC Call Report Data June 30th, 2018.
The Riegle Community Development and Regulatory Improvement Act of 1994 (RCDRIA) requires that each Federal banking agency, in determining the effective date and administrative compliance requirements for new regulations that impose additional reporting, disclosure, or other requirements on IDIs, consider, consistent with principles of safety and soundness and the public interest, any administrative burdens that such regulations would place on depository institutions, including small depository institutions, and customers of depository institutions, as well as the benefits of such regulations. In addition, new regulations and amendments to regulations that impose additional reporting, disclosures, or other new requirements on IDIs generally must take effect on the first day of a calendar quarter that begins on or after the date on which the regulations are published in final form.\52\
\52\ 12 U.S.C. 4802.
The following data items are currently collected on the FFIEC 051 quarterly. The data items are proposed to be collected semiannually in the June and December reports only.
Schedule Item Item name MDRM No.(s)
RI................... M.14........... Other-than- RIADJ321.
losses on held-
and available-
for-sale debt
RC-C, Part I......... M.1.a.(1)...... Loans RCONK158.
in troubled
(TDRs) that
terms: 1-4
RC-C, Part I......... M.1.a.(2)...... Loans RCONK159.
in TDRs that
loans and all
RC-C, Part I......... M.1.b.......... Loans RCONF576.
terms: Loans
secured by 1-4
RC-C, Part I......... M.1.c.......... Loans RCONK160.
terms: Secured
by multifamily
RC-C, Part I......... M.1.d.(1)...... Loans RCONK161.
RC-C, Part I......... M.1.d.(2)...... Loans RCONK162.
other nonfarm
RC-C, Part I......... M.1.e.......... Loans RCONK256.
RC-C, Part I......... M.1.f.......... Loans RCONK165.
(include loans
for household,
RC-C, Part I......... M.1.f.(1)...... Loans RCONK166.
RC-C, Part I......... M.1.f.(4).(a).. Loans RCONK098.
RC-C, Part I......... M.1.f.(4).(b).. Loans RCONK203.
RC-C, Part I......... M.1.f.(4).(c).. Loans RCONK204.
RC-C, Part I......... M.1.f.(5)...... Loans RCONK168.
Schedule RC-C,
item 1.f,
RC-E................. M.1.a.......... Total RCON6835.
(IRAs) and
RC-E................. M.5............ Does your RCONP752.
offer one or
household, or
family use?.
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RC-M................. 8.a............ Uniform TEXT4087.
site (home
page), if any
www.examplebank.com).
RC-M................. 8.b............ URLs of all TE01N528,
other public- TE02N528,
facing TE03N528,
Internet TE04N528,
websites that TE05N528,
the reporting TE06N528,
institution TE07N528,
uses to accept TE08N528,
or solicit TE09N528,
deposits from TE10N528.
the public, if
RC-M................. 8.c............ Trade names TE01N529,
other than the TE02N529,
reporting TE03N529,
institution's TE04N529,
legal title TE05N529,
used to TE06N529.
or solicited
public, if any.
RC-N................. M.1.a.(1)...... Loans RCONK105,
restructured RCONK106,
in troubled RCONK107.
Schedule RC-N,
above: 1-4
RC-N................. M.1.a.(2)...... Loans RCONK108,
restructured RCONK109,
in TDRs RCONK110.
above: Other
RC-N................. M.1.b.......... Loans RCONF661,
restructured RCONF662,
in TDRs RCONF663.
above: Loans
RC-N................. M.1.c.......... Loans RCONK111,
restructured RCONK112,
in TDRs RCONK113.
above: Secured
RC-N................. M.1.d.(1)...... Loans RCONK114,
restructured RCONK115,
in TDRs RCONK116.
RC-N................. M.1.d.(2)...... Loans RCONK117,
restructured RCONK118,
in TDRs RCONK119.
RC-N................. M.1.e.......... Loans RCONK257,
restructured RCONK258,
in TDRs RCONK259.
RC-N................. M.1.f.......... Loans RCONK126,
restructured RCONK127,
in TDRs RCONK128.
above: All
RC-N................. M.1.f.(1)...... Loans RCONK130,
restructured RCONK131,
in TDRs RCONK132.
RC-N................. M.1.f.(4)(a)... Loans RCONK274,
restructured RCONK275,
in TDRs RCONK276.
above: Credit
RC-N................. M.1.f.(4)(b)... Loans RCONK277,
restructured RCONK278,
in TDRs RCONK279.
RC-N................. M.1.f.(4)(c)... Loans RCONK280,
restructured RCONK281,
in TDRs RCONK282.
RC-N................. M.1.f.(5)...... Loans RCONK138,
restructured RCONK139,
in TDRs RCONK140.
RC-R, Part II........ 1.............. Cash and RCOND957,
balances due RCOND958,
from RCOND959,
depository RCOND960,
institutions. RCONS396,
RCONS397,
RCONS398.
RC-R, Part II........ 2.a............ Held-to- RCOND961,
maturity RCOND962,
securities. RCOND963,
RCOND964,
RCOND965,
RCONHJ74,
RCONHJ75,
RCONS399,
RCONS400.
RC-R, Part II........ 2.b............ Available-for- RCOND967,
sale RCOND968,
securities. RCOND969,
RCOND970,
RCONH271,
RCONH272,
RCONHJ76,
RCONHJ77,
RCONJA21,
RCONS402,
RCONS403,
RCONS405,
RCONS406.
RC-R, Part II........ 3.a............ Federal funds RCOND971,
sold. RCOND972,
RCOND973,
RCOND974,
RCONS410,
RCONS411.
RC-R, Part II........ 3.b............ Securities RCONH171,
purchased RCONH172.
RC-R, Part II........ 4.a............ Loans and RCONH173,
leases held RCONH273,
for sale: RCONH274,
Residential RCONS413,
mortgage RCONS414,
exposures. RCONS415,
RCONS416,
RCONS417.
RC-R, Part II........ 4.b............ Loans and RCONH174,
leases held RCONH175,
for sale: High RCONH176,
volatility RCONH177,
commercial RCONH275,
real estate RCONH276,
exposures. RCONS419,
RCONS420,
RCONS421.
RC-R, Part II........ 4.c............ Loans and RCONH277,
leases held RCONH278,
for sale: RCONHJ78,
Exposures past RCONHJ79,
due 90 days or RCONS423,
more or on RCONS424,
nonaccrual. RCONS425,
RCONS426,
RCONS427,
RCONS428,
RCONS429.
RC-R, Part II........ 4.d............ Loans and RCONH279,
leases held RCONH280,
for sale: All RCONHJ80,
other RCONHJ81,
exposures. RCONS431,
RCONS432,
RCONS433,
RCONS434,
RCONS435,
RCONS436,
RCONS437.
RC-R, Part II........ 5.a............ Loans and RCONH178,
leases held RCONH281,
for RCONH282,
investment: RCONS439,
Residential RCONS440,
mortgage RCONS441,
exposures. RCONS442,
RCONS443.
RC-R, Part II........ 5.b............ Loans and RCONH179,
leases held RCONH180,
for RCONH181,
investment: RCONH182,
High RCONH283,
volatility RCONH284,
commercial RCONS445,
real estate RCONS446,
exposures. RCONS447.
RC-R, Part II........ 5.c............ Loans and RCONH285,
leases held RCONH286,
for RCONHJ82,
investment: RCONHJ83,
Exposures past RCONS449,
due 90 days or RCONS450,
more or on RCONS451,
nonaccrual. RCONS452,
RCONS453,
RCONS454,
RCONS455.
RC-R, Part II........ 5.d............ Loans and RCONH287,
leases held RCONH288,
for RCONHJ84,
investment: RCONHJ85,
All other RCONS457,
exposures. RCONS458,
RCONS459,
RCONS460,
RCONS461,
RCONS462,
RCONS463.
RC-R, Part II........ 6.............. LESS: Allowance RCON3123
for loan and (column A),
lease losses. RCON3123
(column B).
Page 58450
RC-R, Part II........ 7.............. Trading assets. RCOND976,
RCOND977,
RCOND978,
RCOND979,
RCOND980,
RCONH186,
RCONH187,
RCONH290,
RCONH291,
RCONH292,
RCONHJ86,
RCONHJ87,
RCONS466,
RCONS467.
RC-R, Part II........ 8.............. All other RCOND981,
assets. RCOND982,
RCOND983,
RCOND984,
RCOND985,
RCONH185,
RCONH188,
RCONH294,
RCONH295,
RCONHJ88,
RCONHJ89,
RCONS469,
RCONS470,
RCONS471.
RC-R, Part II........ 8.a............ Separate RCONH296,
account bank- RCONH297.
RC-R, Part II........ 8.b............ Default fund RCONH298,
contributions RCONH299.
RC-R, Part II........ 9.a............ On-balance RCONS475,
sheet RCONS476,
securitization RCONS477,
exposures: RCONS478,
Held-to- RCONS479.
RC-R, Part II........ 9.b............ On-balance RCONS480,
sheet RCONS481,
securitization RCONS482,
exposures: RCONS483,
Available-for- RCONS484.
RC-R, Part II........ 9.c............ On-balance RCONS485,
sheet RCONS486,
securitization RCONS487,
exposures: RCONS488,
Trading assets. RCONS489.
RC-R, Part II........ 9.d............ On-balance RCONS490,
sheet RCONS491,
securitization RCONS492,
exposures: All RCONS493,
other on- RCONS494.
RC-R, Part II........ 10............. Off-balance RCONS495,
sheet RCONS496,
securitization RCONS497,
exposures. RCONS498,
RCONS499.
RC-R, Part II........ 11............. Total balance RCON2170,
sheet assets. RCOND987,
RCOND988,
RCOND989,
RCOND990,
RCONH300,
RCONHJ90,
RCONHJ91,
RCONS500,
RCONS503,
RCONS505,
RCONS506,
RCONS507,
RCONS510.
RC-R, Part II........ 12............. Financial RCOND991,
standby RCOND992,
letters of RCOND993,
credit. RCOND994,
RCOND995,
RCOND996,
RCONHJ92,
RCONHJ93,
RCONS511.
RC-R, Part II........ 13............. Performance RCOND997,
standby RCOND998,
letters of RCOND999,
credit and RCONG603,
transaction- RCONG604,
related RCONG605,
contingent RCONS512.
RC-R, Part II........ 14............. Commercial and RCONG606,
similar RCONG607,
letters of RCONG608,
credit with an RCONG609,
original RCONG610,
maturity of RCONG611,
one year or RCONHJ94,
less. RCONHJ95,
RCONS513.
RC-R, Part II........ 15............. Retained RCONG612,
recourse on RCONG613,
small business RCONG614,
obligations RCONG615,
sold with RCONG616,
recourse. RCONG617,
RCONS514.
RC-R, Part II........ 16............. Repo-style RCONH301,
transactions. RCONH302,
RCONS515,
RCONS516,
RCONS517,
RCONS518,
RCONS519,
RCONS520,
RCONS521,
RCONS522,
RCONS523.
RC-R, Part II........ 17............. All other off- RCONG618,
balance sheet RCONG619,
liabilities. RCONG620,
RCONG621,
RCONG622,
RCONG623,
RCONS524.
Page 58451
RC-R, Part II........ 18.a........... Unused RCONH303,
commitments: RCONH304,
Original RCONHJ96,
maturity of RCONHJ97,
one year or RCONS525,
less. RCONS526,
RCONS527,
RCONS528,
RCONS529,
RCONS530,
RCONS531.
RC-R, Part II........ 18.b........... Unused RCONG624,
commitments: RCONG625,
Original RCONG626,
maturity RCONG627,
exceeding one RCONG628,
year. RCONG629,
RCONH307,
RCONH308,
RCONHJ98,
RCONHJ99,
RCONS539.
RC-R, Part II........ 19............. Unconditionally RCONS540,
cancelable RCONS541.
RC-R, Part II........ 20............. Over-the- RCONH309,
counter RCONH310,
derivatives. RCONHK00,
RCONHK01,
RCONS542,
RCONS543,
RCONS544,
RCONS545,
RCONS546,
RCONS547,
RCONS548.
RC-R, Part II........ 21............. Centrally RCONS549,
cleared RCONS550,
derivatives. RCONS551,
RCONS552,
RCONS554,
RCONS555,
RCONS556,
RCONS557.
RC-R, Part II........ 22............. Unsettled RCONH191,
transactions RCONH193,
(failed RCONH194,
trades). RCONH195,
RCONK196,
RCONH197,
RCONH198,
RCONH199,
RCONH200.
RC-R, Part II........ 23............. Total assets, RCONG630,
derivatives, RCONG631,
off-balance RCONG632,
sheet items, RCONG633,
and other RCONS558,
items subject RCONS559,
to risk RCONS560,
weighting by RCONS561,
risk-weight RCONS563,
category. RCONS564,
RCONS565,
RCONS566,
RCONS567,
RCONS568.
RC-R, Part II........ 25............. Risk-weighted RCONG634,
assets by risk- RCONG635,
weight RCONG636,
category. RCONG637,
RCONS569,
RCONS570,
RCONS571,
RCONS572,
RCONS574,
RCONS575,
RCONS576,
RCONS577,
RCONS578,
RCONS579.
RC-R, Part II........ M.1............ Current credit RCONG642.
RC-R, Part II........ M.2.a.......... Notional RCONS582,
principal RCONS583,
amounts of RCONS584.
RC-R, Part II........ M.2.b.......... Notional RCONS585,
principal RCONS586,
amounts of RCONS587.
RC-R, Part II........ M.2.c.......... Notional RCONS588,
principal RCONS589,
amounts of RCONS590.
RC-R, Part II........ M.2.d.......... Notional RCONS591,
principal RCONS592,
amounts of RCONS593.
Credit (non-
RC-R, Part II........ M.2.e.......... Notional RCONS594,
principal RCONS595,
amounts of RCONS596.
RC-R, Part II........ M.2.f.......... Notional RCONS597,
principal RCONS598,
amounts of RCONS599.
metals (except
RC-R, Part II........ M.2.g.......... Notional RCONS600,
principal RCONS601,
amounts of RCONS602.
contracts:.
RC-R, Part II........ M.3.a.......... Notional RCONS603,
principal RCONS604,
amounts of RCONS605.
RC-R, Part II........ M.3.b.......... Notional RCONS606,
principal RCONS607,
amounts of RCONS608.
RC-R, Part II........ M.3.c.......... Notional RCONS609,
principal RCONS610,
amounts of RCONS611.
RC-R, Part II........ M.3.d.......... Notional RCONS612,
principal RCONS613,
amounts of RCONS614.
RC-R, Part II........ M.3.e.......... Notional RCONS615,
principal RCONS616,
amounts of RCONS617.
RC-R, Part II........ M.3.f.......... Notional RCONS618,
principal RCONS619,
amounts of RCONS620.
RC-R, Part II........ M.3.g.......... Notional RCONS621,
principal RCONS622,
amounts of RCONS623.
RC-T................. 4.............. Fiduciary and RCONB868,
Related RCONB869,
Assets: RCONB870,
Personal trust RCONB871.
RC-T................. 5.a............ Fiduciary and RCONB872,
Related RCONB873,
Assets: RCONB874,
Employee RCONB875.
benefit--defin
RC-T................. 5.b............ Fiduciary and RCONB876,
Related RCONB877,
Assets: RCONB878,
Employee RCONB879.
ed benefit.
RC-T................. 5.c............ Fiduciary and RCONB880,
Related RCONB881,
Assets: Other RCONB882,
employee RCONB883.
RC-T................. 6.............. Fiduciary and RCONB884,
Related RCONB885,
Assets: RCONC001,
Corporate RCONC002.
RC-T................. 7.............. Fiduciary and RCONB886,
Related RCONB888,
Assets: RCONJ253,
Investment RCONJ254.
RC-T................. 8.............. Fiduciary and RCONJ255,
Related RCONJ256,
Assets: RCONJ257,
Foundation and RCONJ258.
RC-T................. 9.............. Fiduciary and RCONB890,
Related RCONB891,
Assets: Other RCONB892,
fiduciary RCONB893.
RC-T................. 10............. Fiduciary and RCONB894,
Related RCONB895,
Assets: Total RCONB896,
fiduciary RCONB897.
RC-T................. 11............. Fiduciary and RCONB898,
Related RCONB899.
RC-T................. 13............. Fiduciary and RCONJ259,
Related RCONJ260,
Assets: RCONJ261,
Individual RCONJ262.
items 5.c and
RC-T................. 14............. Fiduciary and RIADB904.
RC-T................. 15.a........... Fiduciary and RIADB905.
RC-T................. 15.b........... Fiduciary and RIADB906.
RC-T................. 15.c........... Fiduciary and RIADB907.
RC-T................. 16............. Fiduciary and RIADA479.
RC-T................. 17............. Fiduciary and RIADJ315.
RC-T................. 18............. Fiduciary and RIADJ316.
RC-T................. 19............. Fiduciary and RIADA480.
RC-T................. 20............. Fiduciary and RIADB909.
RC-T................. 21............. Fiduciary and RIADB910.
RC-T................. 22............. Fiduciary and RIAD4070.
Income: Total
RC-T................. M.3.a.......... Collective RCONB931,
investment RCONB932.
RC-T................. M.3.b.......... Collective RCONB933,
investment RCONB934.
Global equity.
RC-T................. M.3.c.......... Collective RCONB935,
investment RCONB936.
funds: Stock/
Bond blend.
RC-T................. M.3.d.......... Collective RCONB937,
investment RCONB938.
funds: Taxable
RC-T................. M.3.e.......... Collective RCONB939,
investment RCONB940.
RC-T................. M.3.f.......... Collective RCONB941,
investment RCONB942.
funds: Short-
RC-T................. M.3.g.......... Collective RCONB943,
investment RCONB944.
RC-T................. M.3.h.......... Collective RCONB945,
investment RCONB946.
funds: Total
Schedule Item Item name MDRM No.
RC-O................. M.2............ Estimated RCON5597.
RI-C *............... 1.a............ Construction TBD (2 New MDRM
loans. Numbers)
RI-C *............... 1.b............ Commercial real TBD (2 New MDRM
estate loans. Numbers)
RI-C *............... 1.c............ Residential TBD (2 New MDRM
real estate Numbers)
RI-C *............... 2.............. Commercial TBD (2 New MDRM
RI-C *............... 3.............. Credit cards... TBD (2 New MDRM
RI-C *............... 4.............. Other consumer TBD (2 New MDRM
RI-C *............... 5.............. Unallocated, if TBD (1 New MDRM
any. Number)
Page 58454
RI-C *............... 6.............. Total.......... TBD (2 New MDRM
* The FFIEC 041 Schedule RI-C collects disaggregated data on the
allowance for loan and lease losses by loan category and the related
recorded investment based on whether the reported allowance relates to
loans that are individually impaired, purchased credit-impaired, or
collectively evaluated for impairment in six columns. The proposed
Schedule RI-C for the FFIEC 051 will consolidate the disaggregated
data into two columns: ``Recorded Investment'' (column A) and
``Allowance Balance'' (column B).
Effective June 30, 2021, the column captions would be changed to
``Amortized Cost'' (column A) and ``Allowance for Credit Losses''
(ACL) (column B). From June 30, 2019, through December 31, 2020,
institutions that have adopted Accounting Standards Update No. 2016-
13, ``Financial Instruments--Credit Losses (Topic 326): Measurement of
Credit Losses on Financial Instruments'' (ASU 2016-13) would report
the amortized cost and related ACL by loan category in columns A and
B, respectively. From June 30, 2021, through December 31, 2022,
institutions that have not adopted ASU 2016-13 would report the
recorded investment and related allowance balance by loan category in
columns A and B, respectively.
RI **................ M.15.a......... Consumer RIADH032.
RI **................ M.15.b......... Consumer RIADH033.
RI **................ M.15.c......... Consumer RIADH034.
(ATM) fees
RI **................ M.15.d......... All other RIADH035.
RC-E **.............. M.6.a.......... Total deposits RCONP753.
RC-E **.............. M.6.b.......... Total deposits RCONP754.
RC-E **.............. M.7.a.(1)...... Total deposits RCONP756.
in those MMDA
RC-E **.............. M.7.a.(2)...... Deposits in all RCONP757.
other MMDAs of
RC-E **.............. M.7.b.(1)...... Total deposits RCONP758.
in those other
RC-E **.............. M.7.b.(2)...... Deposits in all RCONP759.
** Items are to be completed by institutions with $1 billion or more in
total assets that answered ``Yes'' to Schedule RC-E, Memorandum item
The following data items are currently being proposed to be collected quarterly on the FFIEC 041 by those institutions with $1 billion or more in total assets that have adopted ASU 2016-13.\53\
\53\ See 83 FR 49160 (September 28, 2018).
Page 58455
RI-C................. 7.............. Held-to- TBD (1 New MDRM
Maturity: Number).
RI-C................. 8.a............ Held-to- TBD (1 New MDRM
RI-C................. 8.b............ Held-to- TBD (1 New MDRM
Other mortgage-
RI-C................. 9.............. Held-to- TBD (1 New MDRM
RI-C................. 10............. Held-to- TBD (1 New MDRM
RI-C................. 11............. Held-to- TBD (1 New MDRM
Accounting, Agriculture, Banks, banking, Confidential business information, Consumer protection, Currency, Insurance, Investments, Mortgages, Reporting and recordkeeping requirements, Securities
Bank deposit insurance, Banks, banking, Freedom of information, Reporting and recordkeeping requirements.
PART 52--REGULATORY REPORTING
52.1 Authority and purpose.
Sec. 52.2 Definitions.
Sec. 52.3 Reduced reporting.
Sec. 52.4 Reservation of authority.
Sec. 52.1 Authority and purpose.
The OCC may determine that a covered depository institution shall not use the reduced reporting in Sec. 52.3. In making this determination, the OCC will consider whether the institution is significantly engaged in complex, specialized, or higher risk activities, for which a reduced reporting requirement would not provide sufficient information. The institution has 30 days following notification from the OCC to inform the OCC, in writing, of why it should continue to be eligible to use reduced reporting or cannot cease using reduced reporting in the OCC's proposed timeframe. The OCC will make a final decision after reviewing any response. Nothing in this part shall be construed to limit the OCC's authority to obtain information from a covered depository institution.
The authority citation of part 208 is amended to read as follows:
Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a, 371d, 461, 481-486, 601, 611, 1814, 1816, 1817(a)(3), 1817(a)(12),
1818, 1820(d)(9), 1833(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1, 1831w, 1831x, 1835a, 1882, 2901-2907, 3105, 3310, 3331-3351, 3905-
3909, and 5371; 15 U.S.C. 78b, 78I(b), 78l(i), 780-4(c)(5), 78q, 78q-1, and 78w, 1681s, 1681w, 6801, and 6805; 31 U.S.C. 5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106 and 4128.
Add new subpart K to part 208 to read as follows:
Subpart K--Forms, Instructions and Reports
Sec. 208.120 Authority, Purpose, and Scope
Sec. 208.121 Definitions
Sec. 208.122 Reporting
Sec. 208.123 Reduced Reporting
Sec. 208.124 Reservation of Authority
(a) A state member bank is required to file the report of condition (Call Report) in accordance with the instructions for these reports. All assets and liabilities, including contingent assets and liabilities, must be reported in, or otherwise taken into account in the preparation of, the Call Report. The Board uses Call Report data to monitor the condition, performance, and risk profile of individual state member banks and the banking industry. Reporting state member banks must also submit annually such information on small business and small farm lending as the Board may need to assess the availability of credit to these sectors of the economy. The report forms and instructions can be obtained from Federal Reserve District Banks or through the website of the Federal Financial Institutions Examination Council, http://www.ffiec.gov/.
(b) Every insured U.S. branch of a foreign bank is required to file the FFIEC 002 version of the report of condition (Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks) in accordance with the instructions for the report. All assets and liabilities, including contingent assets and liabilities, must be reported in, or otherwise taken into account in the preparation of the report. The Board uses the reported data to monitor the condition, performance, and risk profile of individual insured branches and the banking industry. Insured branches must also submit annually such information on small business and small farm lending as the Board may need to assess the availability of credit to these sectors of the economy. The report forms and instructions can be obtained from Federal Reserve District Banks or through the website of the Federal Financial Institutions Examination Council, http://www.ffiec.gov/.
(a) Notwithstanding Sec. 208.123, the Board in consultation with the applicable state chartering authority may require an otherwise eligible covered depository institution to file the FFIEC 041 version of the report of condition, or any successor thereto, based on an institution-specific determination. In making this determination, the Board may consider criteria including, but not limited to, whether the institution is significantly engaged in one or more complex, specialized, or other higher risk activities, such as those for which limited information is reported in the FFIEC 051 version of the report of condition compared to the FFIEC 041 version of the report of condition. Nothing in this part shall be construed to limit the Board's authority to obtain information from a state member bank.
PART 304--FORMS, INSTRUCTIONS, AND REPORTS
Sec. 304.1 Purpose.
Sec. 304.2 Where to obtain forms and instructions.
Sec. 304.3 Reports.
Sec. 304.4-304.10 Reserved.
Subpart B--Implementation of Reduced Reporting Requirement
Sec. 304.11 Authority, purpose and scope.
Sec. 304.12 Definitions.
Sec. 304.13 Reduced reporting.
Sec. 304.14 Reservation of authority.
Forms and instructions used in connection with applications, reports, and other submittals used by the FDIC can be obtained by contacting the FDIC Public Information Center (550 17th Street NW, Washington, DC 20429; telephone: (877) 275-3342 or (703) 562-2200), except as noted below in Sec. 304.3. In addition, many forms and instructions can be obtained from FDIC regional offices. A list of FDIC regional offices can be obtained from the FDIC Public Information Center, or found at the FDIC's website at http://www.fdic.gov, or in the directory of FDIC Law, Regulations, Related Acts published by the FDIC.
(d) Notification of Performance of Bank Services, Form FDIC 6120/
Pursuant to Section 7 of the Bank Service Company Act (12 U.S.C. 1867), as amended, FDIC-supervised banks must notify the agency about the existence of a service relationship within thirty days after the making of the contract or the performance of the service, whichever occurs first. Form FDIC 6120/06 may be used to satisfy the notice requirement. The form contains identification, location and contact information for the bank, the servicer, and a description of the services provided. In lieu of the form, notification may be provided by letter. Either the form or the letter containing the notice information must be submitted to the regional director--Division of Risk Management Supervision (RMS) of the region in which the bank's main office is located.
Sec. 304.11 Authority, purpose, and scope.
(4) Is not a large institution or highly complex institution, as such terms are
Page 58458
defined in 12 CFR 327.8, or treated as a large institution, as requested under 12 CFR 327.16(f); and
Notwithstanding Sec. 304.13, the Corporation, in consultation with the applicable state chartering authority, may require an otherwise eligible covered depository institution to file the FFIEC 041 version of the report of condition, or any successor thereto, based on an institution-specific determination. In making this determination, the Corporation may consider criteria including, but not limited to, whether the institution is significantly engaged in one or more complex, specialized, or other higher-risk activities, such as those for which limited information is reported in the FFIEC 051 version of the report of condition compared to the FFIEC 041 version of the report of condition. Nothing in this part shall be construed to limit the Corporation's authority to obtain information from insured depository institutions.
FR Doc. 2018-24587 Filed 11-16-18; 8:45 am