[Federal Register Volume 85, Number 230 (Monday, November 30, 2020)]
[Notices]
[Pages 76658-76662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26388]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Joint notice and request for comment.
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SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may
not conduct or sponsor, and the respondent is not required to respond
[[Page 76659]]
to, an information collection unless it displays a currently valid
Office of Management and Budget (OMB) control number. The Federal
Financial Institutions Examination Council (FFIEC), of which the
agencies are members, has approved the agencies' publication for public
comment of a proposal to revise and extend the Consolidated Reports of
Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC
051), which are currently approved collections of information. The
agencies are requesting comment on an adjustment to the measurement
date for certain total asset thresholds that trigger additional
reporting requirements in the Call Reports for report dates in 2021
only due to institution asset growth in 2020 related to participation
in various coronavirus disease 2019 (COVID-19) related stimulus
activities.
DATES: Comments must be submitted on or before January 29, 2021.
ADDRESSES: Interested parties are invited to submit written comments to
any or all of the agencies. All comments, which should refer to the
``Call Report Reporting Revisions,'' will be shared among the agencies.
OCC: You may submit comments, which should refer to ``Call Report
Reporting Revisions,'' by any of the following methods:
Email: prainfo@occ.treas.gov.
Mail: Chief Counsel's Office, Office of the Comptroller of
the Currency, Attention: 1557-0081, 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``1557-0081'' in your comment. In general, the OCC will publish
comments on www.reginfo.gov without change, including any business or
personal information provided, such as name and address information,
email addresses, or phone numbers. Comments received, including
attachments and other supporting materials, are part of the public
record and subject to public disclosure. Do not include any information
in your comment or supporting materials that you consider confidential
or inappropriate for public disclosure.
You may review comments and other related materials that pertain to
this information collection beginning on the date of publication of the
second notice for this collection by the following method:
Viewing Comments Electronically: Go to www.reginfo.gov.
Click on the ``Information Collection Review'' tab. Underneath the
``Currently under Review'' section heading, from the drop-down menu
select ``Department of Treasury'' and then click ``submit.'' This
information collection can be located by searching by OMB control
number ``1557-0081.'' Upon finding the appropriate information
collection, click on the related ``ICR Reference Number.'' On the next
screen, select ``View Supporting Statement and Other Documents'' and
then click on the link to any comment listed at the bottom of the
screen.
For assistance in navigating www.reginfo.gov, please
contact the Regulatory Information Service Center at (202) 482-7340.
Board: You may submit comments, which should refer to ``Call Report
Reporting Revisions,'' by any of the following methods:
Agency website: http://www.federalreserve.gov. Follow the
instructions for submitting comments at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Email: regs.comments@federalreserve.gov. Include ``Call
Report Reporting Revisions'' in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
All public comments are available on the Board's website at https://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted,
unless modified for technical reasons. Accordingly, your comments will
not be edited to remove any identifying or contact information.
FDIC: You may submit comments, which should refer to ``Call Report
Reporting Revisions,'' by any of the following methods:
Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC's
website.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: comments@FDIC.gov. Include ``Call Report Reporting
Revisions'' in the subject line of the message.
Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW,
Washington, DC 20429.
Hand Delivery: Comments may be hand delivered to the guard
station at the rear of the 550 17th Street Building (located on F
Street) on business days between 7:00 a.m. and 5:00 p.m.
Public Inspection: All comments received will be posted
without change to https://www.fdic.gov/regulations/laws/federal/
including any personal information provided. Paper copies of public
comments may be requested from the FDIC Public Information Center by
telephone at (877) 275-3342 or (703) 562-2200.
Additionally, commenters may send a copy of their comments to the
OMB desk officers for the agencies by mail to the Office of Information
and Regulatory Affairs, U.S. Office of Management and Budget, New
Executive Office Building, Room 10235, 725 17th Street NW, Washington,
DC 20503; by fax to (202) 395-6974; or by email to
oira_submission@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: For further information about the
proposed revisions to the information collections discussed in this
notice, please contact any of the agency staff whose names appear
below. In addition, copies of the report forms for the Call Reports can
be obtained at the FFIEC's website (https://www.ffiec.gov/ffiec_report_forms.htm).
OCC: Kevin Korzeniewski, Counsel, Chief Counsel's Office, (202)
649-5490.
Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer,
(202) 452-3884, Office of the Chief Data Officer, Board of Governors of
the Federal Reserve System, 20th and C Streets NW, Washington, DC
20551. Telecommunications Device for the Deaf (TDD) users may call
(202) 263-4869.
FDIC: Manuel E. Cabeza, Counsel, (202) 898-3767, Legal Division,
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington,
DC 20429.
SUPPLEMENTARY INFORMATION:
I. Report Summary
The agencies propose to extend for three years, with revision, the
FFIEC 031, FFIEC 041, and FFIEC 051 Call Reports.
Report Title: Consolidated Reports of Condition and Income (Call
Report).
Form Number: FFIEC 031 (Consolidated Reports of Condition and
Income for a Bank with Domestic and Foreign Offices), FFIEC 041
(Consolidated Reports of Condition and Income for a Bank with Domestic
Offices Only), and FFIEC 051 (Consolidated Reports of Condition and
Income for a Bank with Domestic Offices Only and Total Assets Less Than
$5 Billion).
Frequency of Response: Quarterly.
[[Page 76660]]
Affected Public: Business or other for-profit.
Type of Review: Revision and extension of currently approved
collections.
OCC:
OMB Control No.: 1557-0081.
Estimated Number of Respondents: 1,111 national banks and federal
savings
associations.
Estimated Average Burden per Response: 41.92 burden hours per
quarter to file.
Estimated Total Annual Burden: 186,292 burden hours to file.
Board:
OMB Control No.: 7100-0036.
Estimated Number of Respondents: 739 state member banks.
Estimated Average Burden per Response: 45.40 burden hours per
quarter to file.
Estimated Total Annual Burden: 134,202 burden hours to file.
FDIC:
OMB Control No.: 3064-0052.
Estimated Number of Respondents: 3,263 insured state nonmember
banks and state savings associations.
Estimated Average Burden per Response: 39.96 burden hours per
quarter to file.
Estimated Total Annual Burden: 521,558 burden hours to file.
The estimated average burden hours collectively reflect the
estimates for the FFIEC 031, the FFIEC 041, and the FFIEC 051 reports
for each agency. When the estimates are calculated by type of report
across the agencies, the estimated average burden hours per quarter are
85.81 (FFIEC 031), 55.20 (FFIEC 041), and 35.27 (FFIEC 051). The
agencies believe the change to the measurement date for the total asset
thresholds used to determine additional reporting requirements for
report dates in 2021 only that is proposed in this notice will not
result in a change in the burden estimates currently approved by OMB.
These estimates do not include increases in burden for report dates in
2021 that would have resulted from institutions growing above asset
thresholds within the Call Report because these institutions would now
be afforded threshold relief. Instead, the agencies periodically
reevaluate their burden estimates based on the data items that are
regularly completed by institutions. Therefore, the burden estimates
for these reports would remain the same if these revisions are
finalized. The estimated burden per response for the quarterly filings
of the Call Report is an average that varies by agency because of
differences in the composition of the institutions under each agency's
supervision (e.g., size distribution of institutions, types of
activities in which they are engaged, and existence of foreign
offices).
Type of Review: Extension and revision of currently approved
collections.
Legal Basis and Need for Collections
The Call Report information collections are mandatory: 12 U.S.C.
161 (national banks), 12 U.S.C. 324 (state member banks), 12 U.S.C.
1817 (insured state nonmember commercial and savings banks), and 12
U.S.C. 1464 (federal and state savings associations). At present,
except for selected data items and text, these information collections
are not given confidential treatment.
Banks and savings associations submit Call Report data to the
agencies each quarter for the agencies' use in monitoring the
condition, performance, and risk profile of individual institutions and
the industry as a whole. Call Report data serve a regulatory or public
policy purpose by assisting the agencies in fulfilling their shared
missions of ensuring the safety and soundness of financial institutions
and the financial system and protecting consumer financial rights, as
well as agency-specific missions affecting national and state-chartered
institutions, such as conducting monetary policy, ensuring financial
stability, and administering federal deposit insurance. Call Reports
are the source of the most current statistical data available for
identifying areas of focus for on-site and off-site examinations. Among
other purposes, the agencies use Call Report data in evaluating
institutions' corporate applications, including interstate merger and
acquisition applications for which the agencies are required by law to
determine whether the resulting institution would control more than 10
percent of the total amount of deposits of insured depository
institutions in the United States. Call Report data also are used to
calculate institutions' deposit insurance assessments and national
banks' and federal savings associations' semiannual assessment fees.
II. Current Action
During 2020, relief measures enacted by Congress through the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) \1\ in
response to the strains on the U.S. economy and disruptions to the
financial markets as a result of COVID-19 have led to unprecedented
growth at many institutions, including loans made through the Paycheck
Protection Program (PPP). This rapid growth has caused the assets of
some institutions to rise above certain asset-based thresholds, and may
cause other community institutions to do so in the near future. Much of
this growth, especially growth related to PPP lending, is likely to be
temporary, and the increase in assets currently held by an institution
may not reflect a change in the institution's longer-term risk profile.
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\1\ Public Law 116-136.
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The Call Report contains various total asset thresholds that are
measured annually as of the June 30 report date and trigger additional
reporting requirements once crossed, generally starting with the Call
Reports for the first calendar quarter of the next calendar year. These
thresholds include the $100 million, $300 million, $1 billion, $5
billion, and $10 billion in total asset threshold within the Call
Reports. The agencies are particularly focused on these total asset
thresholds set at $10 billion or less, as these thresholds could impact
a significant number of smaller community institutions. These
institutions may have fewer resources to implement systems changes and
incur transition costs to comply with the additional reporting
requirements associated with crossing one of those thresholds.
Many community institutions may have unexpectedly crossed these
total asset thresholds during 2020 due to participation in CARES Act
relief programs or other COVID-19-related stimulus activities, which
would otherwise trigger additional reporting obligations starting in
calendar year 2021. The agencies expect some of these institutions may
fall below the relevant total asset threshold as of June 30, 2021, for
example, after forgiveness of PPP loans and redemption of borrowings
obtained through the Board's PPP liquidity facility. The agencies do
not want to create a short-term increase in burden on these community
institutions to comply with the additional reporting for a single year.
For community institutions that remain above a total asset threshold as
of the June 30, 2021, measurement date, the one-year reporting relief
the agencies propose below would assist those institutions in focusing
on COVID-19-related stimulus activities in the near term while
providing additional time to comply with any additional reporting
requirements starting in 2022 rather than 2021.
The agencies are not proposing to permit an alternate measurement
date for larger total asset thresholds within the Call Reports, as the
additional data items required at higher total assets
[[Page 76661]]
thresholds have increased relevance for agency supervisory monitoring.
The agencies also are not proposing to permit an alternate measurement
date for other asset thresholds tied to specific activities, such as
thresholds based on trading assets, mortgage banking activities, or
securitization activities, as levels of these activities generally
would not be impacted by an institution's participation in various
COVID-19-related stimulus activities.
A. FFIEC 051 Eligibility
The agencies have adopted rules establishing criteria for
eligibility to use the FFIEC 051 Call Report.\2\ The current Call
Report instructions permit an institution to file the FFIEC 051 version
of the Call Report if it meets certain criteria consistent with those
rules. One criterion is that an institution must have total
consolidated assets of $5 billion or less in its Call Report as of June
30, 2020, when evaluating eligibility to use the FFIEC 051 for report
dates in calendar year 2021. Due to the asset growth considerations
discussed above, the agencies have revised their rules on FFIEC 051
eligibility \3\ and are proposing to temporarily revise the
instructions for the FFIEC 051 to permit an institution to use the
lesser of the total consolidated assets reported in its Call Report as
of December 31, 2019, or June 30, 2020, when evaluating eligibility to
use the FFIEC 051 for report dates in calendar year 2021. An
institution must still meet the other criteria for eligibility for the
FFIEC 051 in the Call Report instructions. The banking agencies also
reserve the right to require an institution otherwise eligible to use
the FFIEC 051 to file the FFIEC 041 instead based on supervisory needs.
The agencies are proposing this relief for calendar year 2021 only. An
institution would be required to use the total consolidated assets it
reports in its Call Report as of June 30, 2021, when determining
eligibility to use the FFIEC 051 in calendar year 2022, consistent with
the existing instructions for the FFIEC 051.
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\2\ See definition of covered depository institutions. 12 CFR
52.2 (OCC); 12 CFR 208.121 (Board); 12 CFR 304.12 (FDIC).
\3\ https://www.fdic.gov/news/press-releases/2020/pr20127.html.
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B. Community Bank Leverage Ratio Eligibility
The agencies also have adopted rules permitting institutions that
meet certain criteria to use the community bank leverage ratio (CBLR)
framework to measure their regulatory capital.\4\ The agencies have
revised these rules \5\ to allow institutions that temporarily exceed
the $10 billion total asset threshold in those rules to use the CBLR
framework from December 31, 2020, to December 31, 2021, provided they
meet the other qualifying criteria for this framework. Institutions
that elect to use the CBLR framework under this temporary relief would
report CBLR information in Call Report Schedule RC-R, Part I, except
that item 32 (Total assets) on that schedule should reflect the lesser
of the institution's total assets as of December 31, 2019, or as of the
quarter-end report date.
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\4\ See 12 CFR 3.12 (OCC); 12 CFR 217.12 (Board); 12 CFR 324.12
(FDIC).
\5\ https://www.fdic.gov/news/press-releases/2020/pr20127.html.
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C. Call Report Data Item Thresholds
All three versions of the Call Report also include total asset
thresholds for reporting certain additional data items. Reporting of
these data items in a given calendar year is determined based on
whether an institution has crossed the total asset threshold based on
the total consolidated assets reported as of June 30 of the prior year.
For the reasons described above, the agencies propose to permit an
institution to use the lesser of the total consolidated assets reported
in its Call Report as of December 31, 2019, or June 30, 2020, when
determining whether the institution has crossed a total asset threshold
to report additional data items in its Call Reports for report dates in
calendar year 2021. The agencies are proposing this relief for calendar
year 2021 only. An institution would be required to use the total
consolidated assets reported in its Call Report as of June 30, 2021,
when determining whether it must complete any additional items subject
to the total asset threshold in calendar year 2022. As noted above, the
regulatory reporting burden relief is limited to community institutions
with total asset thresholds up to $10 billion, as these thresholds are
most relevant for community institutions.
The Call Report total asset thresholds that would be impacted by
this proposed change in measurement date are:
For the FFIEC 041 and FFIEC 051 only, the $100 million
threshold to report ``Other borrowed money'' in Schedule RC-K, item 13.
For the FFIEC 041 and FFIEC 051 only, the $300 million
threshold \6\ to report additional agricultural lending information in
Schedule RI, Memorandum item 6; Schedule RI-B, Part I, Memorandum item
3; Schedule RC-C, Memorandum item 1.f.(5); Schedule RC-K, Memorandum
item 1; and Schedule RC-N, Memorandum items 1.f.(5) and 4.
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\6\ These same items also have a 5 percent activity threshold
for institutions with less than $300 million in total consolidated
assets. For these items, an institution would measure the 5 percent
threshold as of the same date as of which it measures total
consolidated assets.
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For the FFIEC 031 and FFIEC 041 only, the $300 million
threshold to report certain information on credit card lines in
Schedule RC-L, items 1.b.(1) and (2).
For the FFIEC 041 only, the $300 million threshold to
report cash and balances due from depository institutions in Schedule
RC-A; certain derivatives information in Schedule RI, Memorandum item
10, and Schedule RC-N, Memorandum item 6; and certain additional loan
information in Schedule RI-B, Part I, Memorandum items 2.a, 2.c, and
2.d; Schedule RC-C, Part I, items 2.a, 2.b, 2.c, 4.a, 4.b, 9.b.(1),
9.b.(2), 10.a, and 10.b, column A; Schedule RC-C, Part I, Memorandum
items 1.e.(1), 1.e.(2), and 5; and Schedule RC-N, Memorandum items
1.e.(1), 1.e.(2), and 3.a through 3.d.
The $1 billion threshold to report components of deposit
fee income in Schedule RI, Memorandum items 15.a through 15.d;
disaggregated credit loss allowance data in Schedule RI-C; components
of transaction and nontransaction savings consumer deposit account
products in Schedule RC-E, Memorandum items 6.a, 6.b, 7.a.(1), 7.a.(2),
7.b.(1), and 7.b.(2); and estimated uninsured deposits in Schedule RC-
O, Memorandum item 2.
For the FFIEC 031 and FFIEC 041 only, the $1 billion
threshold to report information on certain income from mutual funds and
annuities in Schedule RI, Memorandum item 2; and financial and
performance standby letters of credit conveyed to others in Schedule
RC-L, items 2.a and 3.a.
For the FFIEC 031 and FFIEC 041 only, the $10 billion
threshold to report additional information on derivatives in Schedule
RI, Memorandum items 9.a and 9.b, and Schedule RC-L, items 16.a and
16.b.(1) through 16.b.(8); holdings of asset-backed securities and
structured financial products in Schedule RC-B, Memorandum items 5.a
through 5.f and 6.a through 6.g; and securitizations in Schedule RC-S,
items 6 and 10, and Memorandum items 3.a.(1), 3.a.(2), 3.b.(1), and
3.b.(2).
For the FFIEC 031 only, the $10 billion threshold to
report additional information on deposits in foreign offices in
Schedule RC-E, Part II.
[[Page 76662]]
III. Request for Comment
Public comment is requested on all aspects of this joint notice.
Comment is specifically invited on:
(a) Whether the proposed revisions to the collections of
information that are the subject of this notice are necessary for the
proper performance of the agencies' functions, including whether the
information has practical utility;
(b) The accuracy of the agencies' estimates of the burden of the
information collections as they are proposed to be revised, including
the validity of the methodology and assumptions used;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of information collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Comments submitted in response to this joint notice will be shared
among the agencies.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
Board of Governors of the Federal Reserve System.
Michelle Taylor Fennell,
Deputy Associate Secretary of the Board.
Dated at Washington, DC, on or about November 24, 2020.
Federal Deposit Insurance Corporation.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2020-26388 Filed 11-27-20; 8:45 am]
BILLING CODE 4810-33- 6210-01- 6714-01-P