# FDIC FIL-86-2005: Proposed Revisions to the Reports of Condition and Income (Call Report)

> Federal · Agency guidance · Superseded

URL: https://www.frixlaw.com/law-library/statutes/FDIC_FIL05086

## Section

- **Citation:** FDIC FIL-86-2005
- **Heading:** Proposed Revisions to the Reports of Condition and Income (Call Report)
- **Jurisdiction:** Federal
- **Kind:** Agency guidance
- **Status:** Superseded
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** FDIC Financial Institution Letters / Proposed Revisions to the Reports of Condition and Income (Call Report)

## Text

49363
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
physical demonstrations will be
included. If physical demonstrations are
conducted, sessions may extend into
September 22, 2005.
I. Introduction
II. Background Information on the San
Angelo Test Facility and Treadwear Test
Course
III. FMVSS No. 138 Final Rule Highlights
IV. OVSC Test Procedure TP–138 Content
A. Overview of Suggested Test Equipment
and Instrumentation
B. Test Preparation Requirements
C. Test Execution
V. Vehicle Manufacturer Test Specification
Form
VI. Issues with Test Procedure TP–138
VII. Questions & Answers
VIII. Simulated and/or Physical
Demonstration of a TPMS-Equipped
Vehicle Using the Test Procedures
Issued: August 17, 2004.
Claude H. Harris,
Director, Office of Vehicle, Safety
Compliance.
Editorial Note: This document was
received at the Office of the Federal Register
August 17, 2005.
[FR Doc. 05–16631 Filed 8–22–05; 8:45 am]
BILLING CODE 4910–59–P
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
AGENCIES: Office of the Comptroller of
the Currency (OCC), Treasury; Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Joint notice and request for
comment.
SUMMARY: In accordance with the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C.
chapter 35), the OCC, the Board, and the
FDIC (the ‘‘agencies’’) may not conduct
or sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number
int notice and request for
comment.
SUMMARY: In accordance with the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C.
chapter 35), the OCC, the Board, and the
FDIC (the ‘‘agencies’’) may not conduct
or sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid 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 proposed revisions to the
Consolidated Reports of Condition and
Income (Call Report), which are
currently approved collections of
information. At the end of the comment
period, the comments and
recommendations received will be
analyzed to determine the extent to
which the FFIEC and the agencies
should modify the proposed revisions
prior to giving final approval. The
agencies will then submit the revisions
to OMB for review and approval.
DATES: Comments must be submitted on
or before October 24, 2005.
ADDRESSES: Interested parties are
invited to submit written comments to
any or all of the agencies. All comments,
which should refer to the OMB control
number(s), will be shared among the
agencies.
OCC: You may submit comments,
identified by [Attention: 1557–0081], by
any of the following methods:
• E-mail:
regs.comments@occ.treas.gov. Include
[Attention: 1557–0081] in the subject
line of the message.
• Fax: (202) 874–4448.
• Mail: Public Information Room,
Office of the Comptroller of the
Currency, 250 E Street, SW., Mailstop
1–5, Washington, DC 20219; Attention:
1557–0081.
Public Inspection: You may inspect
and photocopy comments at the Public
Information Room. You can make an
appointment to inspect the comments
by calling (202) 874–5043
57–0081] in the subject
line of the message.
• Fax: (202) 874–4448.
• Mail: Public Information Room,
Office of the Comptroller of the
Currency, 250 E Street, SW., Mailstop
1–5, Washington, DC 20219; Attention:
1557–0081.
Public Inspection: You may inspect
and photocopy comments at the Public
Information Room. You can make an
appointment to inspect the comments
by calling (202) 874–5043.
Board: You may submit comments,
which should refer to ‘‘Consolidated
Reports of Condition and Income, 7100–
0036,’’ by any of the following methods:
• Agency Web site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments
on the http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail:
regs.comments@federalreserve.gov.
Include docket number in the subject
line of the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper in Room MP–500 of the Board’s
Martin Building (20th and C Streets,
NW.) between 9 a.m. and 5 p.m. on
weekdays.
FDIC: You may submit comments,
which should refer to ‘‘Consolidated
Reports of Condition and Income, 3064–
0052,’’ by any of the following methods:
• http://www.FDIC.gov/regulations/
laws/federal/propose.html.
• E-mail: comments@FDIC.gov.
Include ‘‘Consolidated Reports of
Condition and Income, 3064–0052’’ in
the subject line of the message.
• Mail: Steven F
a.m. and 5 p.m. on
weekdays.
FDIC: You may submit comments,
which should refer to ‘‘Consolidated
Reports of Condition and Income, 3064–
0052,’’ by any of the following methods:
• http://www.FDIC.gov/regulations/
laws/federal/propose.html.
• E-mail: comments@FDIC.gov.
Include ‘‘Consolidated Reports of
Condition and Income, 3064–0052’’ in
the subject line of the message.
• Mail: Steven F. Hanft (202–898–
3907), Paperwork Clearance Officer,
Room MB–3064, 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 a.m. and 5 p.m.
Public Inspection: All comments
received will be posted without change
to http://www.fdic.gov/regulations/laws/
federal/propose.html including any
personal information provided.
Comments may be inspected at the FDIC
Public Information Center, Room 100,
801 17th Street, NW., between 9 a.m.
and 4:30 p.m. on business days.
A copy of the comments may also be
submitted to the OMB desk officer for
the agencies: Mark Menchik, Office of
Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, Room 10235,
Washington, DC 20503, or electronic
mail to mmenchik@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: For
further information about the revisions
discussed in this notice, please contact
any of the agency clearance officers
whose names appear below. In addition,
copies of Call Report forms can be
obtained at the FFIEC’s Web site (http://
www.ffiec.gov/ffiec_report_forms.htm).
OCC: Mary Gottlieb, OCC Clearance
Officer, or Camille Dixon, (202) 874–
5090, Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 250 E
Street, SW., Washington, DC 20219.
Board: Michelle E
ficers
whose names appear below. In addition,
copies of Call Report forms can be
obtained at the FFIEC’s Web site (http://
www.ffiec.gov/ffiec_report_forms.htm).
OCC: Mary Gottlieb, OCC Clearance
Officer, or Camille Dixon, (202) 874–
5090, Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 250 E
Street, SW., Washington, DC 20219.
Board: Michelle E. Long, Federal
Reserve Clearance Officer, (202) 452–
3829, Division of Research and
Statistics, Board of Governors of the
Federal Reserve System, 20th and C
Streets, NW., Washington, DC 20551.
Telecommunications Device for the Deaf
(TDD) users may call (202) 263–4869.
FDIC: Steven F. Hanft, Paperwork
Clearance Officer, (202) 898–3907, Legal
Division, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
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49364
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
SUPPLEMENTARY INFORMATION: The
agencies are proposing to revise and
extend for three years the Call Report,
which is currently an approved
collection of information for each of the
agencies.
Report Title: Consolidated Reports of
Condition and Income (Call Report).
Form Number: Call Report: FFIEC 031
(for banks with domestic and foreign
offices) and FFIEC 041 (for banks with
domestic offices only).
Frequency of Response: Quarterly.
Affected Public: Business or other for-
profit.
OCC:
OMB Number: 1557–0081.
Estimated Number of Respondents:
1,950 national banks.
Estimated Time per Response: 43.80
burden hours (represents a decrease of
4.47 hours associated with testing and
enrollment in the Central Data
Repository (CDR) and a net increase of
1.81 hours for proposed new items and
deletions).
Estimated Total Annual Burden:
341,621 burden hours.
Board:
OMB Number: 7100–0036.
Estimated Number of Respondents:
919 State member banks
national banks.
Estimated Time per Response: 43.80
burden hours (represents a decrease of
4.47 hours associated with testing and
enrollment in the Central Data
Repository (CDR) and a net increase of
1.81 hours for proposed new items and
deletions).
Estimated Total Annual Burden:
341,621 burden hours.
Board:
OMB Number: 7100–0036.
Estimated Number of Respondents:
919 State member banks.
Estimated Time per Response: 50.38
burden hours (represents a decrease of
4.01 hours associated with testing and
enrollment in the CDR and a net
increase of 2.01 hours for proposed new
items and deletions).
Estimated Total Annual Burden:
185,197 burden hours.
FDIC:
OMB Number: 3064–0052.
Estimated Number of Respondents:
5,243 insured state nonmember banks.
Estimated Time per Response: 34.73
burden hours (represents a decrease of
4.16 hours associated with testing and
enrollment in the CDR and a net
increase of 1.79 hours for proposed new
items and deletions).
Estimated Total Annual Burden:
728,274 burden hours.
The estimated time per response for
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). The
average reporting burden for the Call
Report is estimated to range from 16 to
625 hours per quarter, depending on an
individual institution’s circumstances.
Furthermore, the effect on reporting
burden of the proposed revisions to the
Call Report requirements will vary from
institution to institution depending, in
some cases, on the institution’s asset
size and, in other cases, on its
involvement with the types of activities
or transactions to which the proposed
changes apply
er quarter, depending on an
individual institution’s circumstances.
Furthermore, the effect on reporting
burden of the proposed revisions to the
Call Report requirements will vary from
institution to institution depending, in
some cases, on the institution’s asset
size and, in other cases, on its
involvement with the types of activities
or transactions to which the proposed
changes apply. This proposal would add
several new data items to the Call
Report, revise certain existing items,
eliminate a limited number of items,
and remove the burden hours associated
with testing and enrollment in the new
CDR system, which had been added to
the Call Report burden estimate in 2004,
because these CDR activities will be
completed prior to the implementation
of the proposed revisions. Since the
reduction in burden related to the CDR
exceeds the net increase in burden from
the proposed revisions to the content of
the Call Report, the proposal as a whole
would produce a net decrease in
reporting burden for banks of all sizes.
Nevertheless, the proposed new items
and revisions of existing items, taken
together, would have an effect on all
banks. Therefore, as discussed more
fully below in Section I. Overview, the
agencies encourage banks and other
interested parties to comment on such
matters as data availability, data
alternatives, and reporting thresholds
for each proposal for new or revised
data. Such comments will assist the
agencies in determining the content of
the final set of revisions to the Call
Report. For purposes of this proposal,
the following burden estimates include
the effect of all of the proposed
revisions without anticipating any
possible modifications resulting from
the public comment process that may
lessen the impact of the revisions on
some or all banks.
General Description of Reports
These information collections are
mandatory: 12 U.S.C. 161 (for national
banks), 12 U.S.C. 324 (for State member
banks), and 12 U.S.C
burden estimates include
the effect of all of the proposed
revisions without anticipating any
possible modifications resulting from
the public comment process that may
lessen the impact of the revisions on
some or all banks.
General Description of Reports
These information collections are
mandatory: 12 U.S.C. 161 (for national
banks), 12 U.S.C. 324 (for State member
banks), and 12 U.S.C. 1817 (for insured
State nonmember commercial and
savings banks). Except for selected
items, these information collections are
not given confidential treatment.
Abstract
Institutions file Call Reports with 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. In addition, Call Reports
provide the most current statistical data
available for evaluating institutions’
corporate applications such as mergers,
for identifying areas of focus for both
on-site and off-site examinations, and
for monetary and other public policy
purposes. Call Reports are also used to
calculate all institutions’ deposit
insurance and Financing Corporation
assessments and national banks’
semiannual assessment fees.
Current Actions
I. Overview
The agencies last revised the form and
content of the Call Report in a manner
that significantly affected a substantial
percentage of banks in March 2002. The
revisions that have taken effect since
March 2002 (i.e., in March 2003 and
June 2005) were narrowly focused on
certain specific activities in order to
improve the information available to the
agencies for those banks engaging in
these activities. These focused revisions
meant that the new or revised Call
Report items pertaining to each of these
activities were directly applicable to
small percentages of banks rather than
to most or all banks
, in March 2003 and
June 2005) were narrowly focused on
certain specific activities in order to
improve the information available to the
agencies for those banks engaging in
these activities. These focused revisions
meant that the new or revised Call
Report items pertaining to each of these
activities were directly applicable to
small percentages of banks rather than
to most or all banks.
During this recent period of limited
revisions to the Call Report, the FFIEC
and the agencies having been working
toward the October 1, 2005,
implementation of the CDR, the
Internet-based system they are
developing to modernize and streamline
how Call Report data are collected,
validated, managed, and distributed. At
the same time, the agencies have also
been carefully evaluating their
information needs. In this regard, the
agencies recognize that the Call Report
imposes reporting burden, which is a
component of the overall regulatory
burden that banks face. Another
contributor to this overall burden is the
examination process, particularly on-
site examinations during which bank
management and staff spend time and
effort responding to inquiries and
requests for information that are
designed to assist examiners in
evaluating the condition and risk profile
of the institution. The amount of
attention that examiners initially direct
to the various risk areas of the bank
under examination is, in large part,
determined from Call Report data. These
data, and analytical reports generated
from Call Report data such as the
Uniform Bank Performance Report,
assist examiners in making their
preliminary assessments of risks and in
scoping efforts during the planning
phase of the examination process
examiners initially direct
to the various risk areas of the bank
under examination is, in large part,
determined from Call Report data. These
data, and analytical reports generated
from Call Report data such as the
Uniform Bank Performance Report,
assist examiners in making their
preliminary assessments of risks and in
scoping efforts during the planning
phase of the examination process.
The more risk-focused the
information available to examiners from
a bank’s Call Report, the better the job
examiners can do before the start of
their on-site work in making their
preliminary assessments as to whether
each of the risk areas of the bank
presents greater than normal, normal, or
less than normal risk. The degree of
perceived risk determines the extent of
the examination procedures, and the
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49365
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
1 In addition, a smaller bank with significant
involvement in these activities, as determined by its
primary federal regulator, could be directed by its
regulator to report this information.
resultant regulatory burden, that are
initially planned for each risk area. If
the outcome of these procedures begins
to reveal a greater than expected level of
risk in a particular risk area, the
examination scope and procedures are
adjusted accordingly, adding to the
regulatory burden imposed on the bank.
Call Report data are also a vital source
of information for the agencies’ off-site
examination and surveillance activities.
Among their benefits, these activities
aid in determining whether the
frequency of a bank’s examination cycle
should remain at maximum allowed
time intervals, thereby lessening overall
regulatory burden
cordingly, adding to the
regulatory burden imposed on the bank.
Call Report data are also a vital source
of information for the agencies’ off-site
examination and surveillance activities.
Among their benefits, these activities
aid in determining whether the
frequency of a bank’s examination cycle
should remain at maximum allowed
time intervals, thereby lessening overall
regulatory burden. More risk-focused
Call Report data enhance the agencies’
ability to assess whether an institution
is experiencing changes in its risk
profile that warrant immediate follow-
up, which may include accelerating the
timing of an on-site examination.
In developing this proposal, the
agencies have considered a range of
potential information needs,
particularly in the areas of credit risk,
liquidity, and liabilities, and have
identified those additions to the Call
Report that are believed to be most
critical and relevant to the agencies as
they seek to fulfill their supervisory
responsibilities. At the same time, the
agencies have identified certain existing
Call Report data that are no longer
sufficiently critical or useful to warrant
their continued collection from either
all banks or banks that meet certain
criteria (e.g., an asset size threshold). On
balance, the agencies recognize that the
reporting burden that would result from
the addition to the Call Report of all of
the new items discussed in this
proposal would not be fully offset by the
proposed elimination of, or
establishment of reporting thresholds
for, a limited number of other Call
Report items, thereby resulting in a net
increase in reporting burden.
Nevertheless, when viewing these
proposed revisions to the Call Report
within a larger context, they are
intended to enhance the agencies’ on-
and off-site supervision activities,
which should help to control the overall
regulatory burden on banks
tablishment of reporting thresholds
for, a limited number of other Call
Report items, thereby resulting in a net
increase in reporting burden.
Nevertheless, when viewing these
proposed revisions to the Call Report
within a larger context, they are
intended to enhance the agencies’ on-
and off-site supervision activities,
which should help to control the overall
regulatory burden on banks.
Thus, the agencies are requesting
comment on the following proposed
revisions to the Call Report, which
would take effect as of March 31, 2006.
For each of the proposed revisions of
existing items or proposed new items,
the agencies are particularly interested
in comments from banks on whether the
information that is proposed to be
collected is readily available from
existing bank records. The agencies also
invite comment on whether there are
particular proposed revisions for which
the new data would be of limited
relevance for purposes of assessing risks
in a specific segment of the banking
industry. In such cases, comments are
requested on what criteria, e.g., an asset
size threshold or some other measure,
should be established for identifying the
specific segment of the banking industry
that should be required to report the
proposed new information. Finally, the
agencies seek comment on whether, for
a particular proposed revision, there is
an alternative set of information that
could satisfy the agencies’ data needs in
that area and be less burdensome for
banks to report than the new or revised
items that the agencies have proposed.
The agencies will consider all of the
comments they receive as they
formulate a final set of revisions to the
Call Report for implementation in
March 2006.
rticular proposed revision, there is
an alternative set of information that
could satisfy the agencies’ data needs in
that area and be less burdensome for
banks to report than the new or revised
items that the agencies have proposed.
The agencies will consider all of the
comments they receive as they
formulate a final set of revisions to the
Call Report for implementation in
March 2006.
(1) Burden-reducing revisions:
• Eliminating Schedule RC-O,
Memorandum item 2, ‘‘Estimated
amount of uninsured deposits,’’ for
banks with less than $1 billion in assets;
• Collecting only the total amount of
a bank’s holdings of asset-backed
securities in Schedule RC–B from banks
that only have domestic offices and are
less than $1 billion in assets (but
continuing to collect the breakdown by
type of asset-backed security from all
other banks);
• Eliminating items for reporting the
impact on income of derivatives held for
purposes other than trading (Schedule
RI, Memorandum items 9.a through 9.c);
and
• Eliminating items pertaining to
bankers acceptances (Schedule RC,
items 9 and 18; Schedule RC–H, items
1 and 2; and Schedule RC–L, item 5).
(2) Revisions of existing items and
new items:
• Splitting ‘‘Construction, land
development, and other land loans’’
(CLD&OL loans) into separate categories
for 1–4 family residential CLD&OL loans
and all other CLD&OL loans (Schedule
RC–C, part I, item 1.a; Schedule RC–N,
item 1.a; Schedule RI–B, part I, item 1.a;
and Schedule RC–L, item 1.c.1);
• Splitting loans ‘‘Secured by
nonfarm nonresidential properties’’
(commercial real estate loans) into
separate categories for owner-occupied
and other commercial real estate
(Schedule RC–C, part I, item 1.e;
Schedule RC–N, item 1.e; Schedule RI–
B, part I, item 1.e);
• Replacing the breakdown of ‘‘Lease
financing receivables’’ between leases
from U.S. and non-U.S
ule RC–L, item 1.c.1);
• Splitting loans ‘‘Secured by
nonfarm nonresidential properties’’
(commercial real estate loans) into
separate categories for owner-occupied
and other commercial real estate
(Schedule RC–C, part I, item 1.e;
Schedule RC–N, item 1.e; Schedule RI–
B, part I, item 1.e);
• Replacing the breakdown of ‘‘Lease
financing receivables’’ between leases
from U.S. and non-U.S. addressees with
a breakdown of leases between retail
(consumer) leases and commercial
leases for banks with foreign offices or
with domestic offices only and $300
million or more in total assets (Schedule
RC–C, part I, items 10.a and 10.b;
Schedule RC–N, items 8.a and 8.b on
the FFIEC 031 and Memorandum item
3.d on the FFIEC 041; and Schedule RI–
B, part I, items 8.a and 8.b on the FFIEC
031 and Memorandum item 2.d on the
FFIEC 041);
• Collecting further information on
Federal Home Loan Bank advances,
which are currently reported in
Schedule RC–M, item 5.a, by adding
breakdowns of advances by type and by
next repricing date and by splitting the
existing item for advances with a
remaining maturity of more than three
years into two items;
• Adding two items to the past due
and nonaccrual assets schedule
(Schedule RC–N) for ‘‘Additions to
nonaccrual assets during the quarter’’
and ‘‘Nonaccrual assets sold during the
quarter;’’
• Collecting additional information
on credit derivatives by adding a
breakdown by type of contract to the
notional amounts currently reported in
Schedule RC–L, item 7, along with new
items for the maximum amounts
payable and receivable on credit
derivatives; adding credit derivatives to
the existing maturity distribution of
derivatives in Schedule RC–R,
Memorandum item 2; adding credit
derivatives to the breakdown of trading
revenue by type of exposure currently
collected in Schedule RI, Memorandum
item 8; and adding a new income
statement Memorandum item for the
effect on earnings of credit derivatives
held for purposes other than trading;
• Adding a n
derivatives to
the existing maturity distribution of
derivatives in Schedule RC–R,
Memorandum item 2; adding credit
derivatives to the breakdown of trading
revenue by type of exposure currently
collected in Schedule RI, Memorandum
item 8; and adding a new income
statement Memorandum item for the
effect on earnings of credit derivatives
held for purposes other than trading;
• Adding a new Schedule RC–P to
collect data pertaining to closed-end 1–
4 family residential mortgage banking
activities for banks with $1 billion or
more in total assets,1 including quarter-
end loans held for sale and quarterly
originations, purchases, and sales,
segregated between first and junior
liens, and noninterest income from
these activities;
• Changing the category of
noninterest income in which banks
report income from certain sales of
annuities from ‘‘Income from other
insurance activities’’ (Schedule RI, item
5.h.(2)) to ‘‘Investment banking,
advisory, brokerage, and underwriting
fees and commissions’’ (Schedule RI,
item 5.d);
• Splitting the income statement item
for ‘‘Investment banking, advisory,
brokerage, and underwriting fees and
commissions’’ (Schedule RI, item 5.d)
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2 In Schedule RC–B, the asset-backed securities
reported in items 5.a through 5.f exclude mortgage-
backed securities, which are reported separately in
items 4.a(1) through 4.b(3) of the schedule
d)
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2 In Schedule RC–B, the asset-backed securities
reported in items 5.a through 5.f exclude mortgage-
backed securities, which are reported separately in
items 4.a(1) through 4.b(3) of the schedule.
into separate items for fees and
commissions from securities brokerage,
fees and commissions from sales of
annuities, and other fees and
commissions;
• Adding new items for the amounts
included in ‘‘Federal funds purchased
(in domestic offices)’’ (Schedule RC,
item 14.b) and ‘‘Other borrowings’’
(Schedule RC–M, item 5.b) that are
secured;
• Adding an item to Schedule RC–F,
‘‘Other Assets,’’ for the carrying value of
the bank’s life insurance assets, which
would replace the item in this schedule
for reporting such assets if they exceed
25 percent of ‘‘All other assets’’;
• Revising Schedule RI–D, ‘‘Income
from International Operations,’’ on the
FFIEC 031 to focus on activity
conducted in foreign offices; and
• Revising the scope of Schedule RC–
S, column G, ‘‘All Other Loans and All
Leases,’’ to cover securitizations and
credit-enhanced asset sales involving
assets other than loans and leases.
(3) Other matters:
• Clarifying the instructions to
Schedule RC–S, Memorandum item 2,
to indicate that the servicing of home
equity lines should be included in the
servicing of ‘‘Other financial assets’’
rather than 1–4 family residential
mortgages; and
• Revising the officer declaration and
director attestation requirements and
signatures that apply to the Call Report.
These proposed revisions to the Call
Report, which have been approved for
publication by the FFIEC for the
purpose of soliciting comments from
banks and other interested parties, are
discussed in more detail below.
Type of Review: Revision and
extension of currently approved
collections
ficer declaration and
director attestation requirements and
signatures that apply to the Call Report.
These proposed revisions to the Call
Report, which have been approved for
publication by the FFIEC for the
purpose of soliciting comments from
banks and other interested parties, are
discussed in more detail below.
Type of Review: Revision and
extension of currently approved
collections.
As mentioned above, the agencies
plan to implement the proposed
changes as of the March 31, 2006, report
date. Nonetheless, as is customary for
Call Report changes, institutions are
advised that they may report reasonable
estimates for any new or revised item in
their reports for March 31, 2006, if the
information to be reported is not readily
available. In addition, the specific
wording of the captions for the new and
revised Call Report items discussed in
this proposal and the numbering of
these items in the report should be
regarded as preliminary.
II. Discussion of Proposed Revisions
A. Burden-Reducing Revisions
1. Uninsured Deposits
All banks have been required to report
the ‘‘Estimated amount of uninsured
deposits’’ in Schedule RC–O,
Memorandum item 2, since March 2002.
To limit reporting burden, the FFIEC
and the agencies advised banks that
they were not expected to modify their
information systems or acquire new
systems solely for purposes of making
this estimate. Rather, banks were
instructed to base their estimates of the
uninsured portion of their deposits on
data that are readily available from the
information systems and other records
the bank has in place. Nonetheless,
smaller banks continue to indicate that
they find this Memorandum item
burdensome and, as a consequence,
many resort to reporting a simple
estimate based on the number and
amount of their deposit accounts of
more than $100,000, the current limit of
deposit insurance
sits on
data that are readily available from the
information systems and other records
the bank has in place. Nonetheless,
smaller banks continue to indicate that
they find this Memorandum item
burdensome and, as a consequence,
many resort to reporting a simple
estimate based on the number and
amount of their deposit accounts of
more than $100,000, the current limit of
deposit insurance.
Because banks already report the
number and amount of such deposit
accounts in Schedule RC–O,
Memorandum item 1, the agencies are
able to calculate the same simple
estimate of uninsured deposits as these
banks have done. A comparison of the
amounts banks have reported for their
estimated uninsured deposits in
Memorandum item 2 with a simple
estimate calculated by the agencies from
the information reported in
Memorandum item 1 revealed
insignificant differences between the
two figures for banks with less than $1
billion in assets, which currently hold
only about 20 percent of banks’ total
domestic deposits. Only at larger
institutions were the differences
between banks’ reported estimates and
the calculated simple estimate
significant enough to have a potential
effect on the estimate of insured
deposits used by the FDIC in the
determination of deposit insurance
assessment premiums. Accordingly, the
agencies are proposing that banks with
less than $1 billion in total assets would
no longer be required to complete
Schedule RC–O, Memorandum item 2.
Banks with $1 billion or more in total
assets would continue to report the
‘‘Estimated amount of uninsured
deposits’’ in this Memorandum item.
2
ed by the FDIC in the
determination of deposit insurance
assessment premiums. Accordingly, the
agencies are proposing that banks with
less than $1 billion in total assets would
no longer be required to complete
Schedule RC–O, Memorandum item 2.
Banks with $1 billion or more in total
assets would continue to report the
‘‘Estimated amount of uninsured
deposits’’ in this Memorandum item.
2. Holdings of Asset-Backed Securities
In Schedule RC–B, ‘‘Securities,’’ the
agencies collect a six-way breakdown of
banks’ holdings of asset-backed
securities (not held for trading
purposes) in items 5.a through 5.f.2
Because banks with domestic offices
only and less than $1 billion in total
assets hold only a nominal percentage of
the industry’s investments in asset-
backed securities, the agencies have
determined that continuing to request a
breakdown by category of these
institutions’ limited holdings is no
longer warranted. Instead, these banks
would report only their total holdings of
asset-backed securities in Schedule RC–
B. However, all banks with foreign
offices and other banks with $1 billion
or more in total assets would continue
to report the existing breakdown of their
asset-backed securities in this schedule.
3. Impact of Derivatives on Income
Banks with foreign offices or with
$100 million or more in total assets
report the effect that their use of
derivatives outside the trading account
has had on their year-to-date interest
income, interest expense, and net
noninterest income in income statement
(Schedule RI) Memorandum items 9.a
through 9.c. The amounts reported in
these Memorandum items are aggregates
of all nontrading derivative positions
and combine derivatives that may have
substantially different underlying risk
exposures, e.g., interest rate risk, foreign
exchange risk, and credit risk. In
recognition of the new data on credit
derivatives that the agencies are
proposing to collect (see Section II.B.6
s 9.a
through 9.c. The amounts reported in
these Memorandum items are aggregates
of all nontrading derivative positions
and combine derivatives that may have
substantially different underlying risk
exposures, e.g., interest rate risk, foreign
exchange risk, and credit risk. In
recognition of the new data on credit
derivatives that the agencies are
proposing to collect (see Section II.B.6.
below), the agencies have identified the
three income statement Memorandum
items as being of lesser utility and
propose to delete them.
4. Bankers Acceptances
The Call Report balance sheet
(Schedule RC) has long required banks
to separately disclose the amount of
their ‘‘Customers’’ liability to this bank
on acceptances outstanding’’ (item 9)
and their ‘‘Bank’s liability on
acceptances executed and outstanding’’
(item 18). For banks with foreign offices,
corresponding amounts are disclosed for
acceptance assets and liabilities in
domestic offices (Schedule RC–H, items
1 and 2). In addition, banks with foreign
offices or $100 million or more in total
assets also report the amount of
‘‘Participations in acceptances conveyed
to others by the reporting bank’’
(Schedule RC–L, item 5). Over time, the
volume of acceptance assets and
liabilities as a percentage of industry
assets and liabilities has declined
substantially to a nominal amount, with
only a small number of banks reporting
these items. The agencies are proposing
to delete these five items and banks
would be instructed to include any
acceptance assets and liabilities in
‘‘Other assets’’ and ‘‘Other liabilities,’’
respectively, on the Call Report balance
sheet.
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y a small number of banks reporting
these items. The agencies are proposing
to delete these five items and banks
would be instructed to include any
acceptance assets and liabilities in
‘‘Other assets’’ and ‘‘Other liabilities,’’
respectively, on the Call Report balance
sheet.
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49367
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
B. Revisions of Existing Items and New
Items
1. Construction Land Development, and
Other Land Loans
Construction, land development, and
other land lending are highly
specialized activities with inherent risks
that must be managed and controlled to
ensure that these activities remain
profitable. Management’s ability to
identify, measure, monitor, and control
the risks from these types of loans
through effective underwriting policies,
systems, and internal controls is crucial
to a sound lending program. In areas of
the country that experience high levels
of construction activity and an
extremely competitive lending
environment, these factors often lead to
thinner profit margins on CLD&OL loans
and looser underwriting standards.
Moreover, the risk profiles, including
loss rates, of CLD&OL loans vary across
loan types because of differences in
such factors as underwriting and
repayment source. The agencies’ real
estate lending standards recognize these
differences in risk, for example, by
setting higher supervisory loan-to-value
limits for 1–4 family residential
construction loans than for other
construction loans.
The agencies have seen substantial
growth in the volume of CLD&OL loans
in recent years. At commercial banks
and state-chartered savings banks, these
loans grew more rapidly than loan
portfolios as a whole during 2003 and
2004
ferences in risk, for example, by
setting higher supervisory loan-to-value
limits for 1–4 family residential
construction loans than for other
construction loans.
The agencies have seen substantial
growth in the volume of CLD&OL loans
in recent years. At commercial banks
and state-chartered savings banks, these
loans grew more rapidly than loan
portfolios as a whole during 2003 and
2004. The faster growth in CLD&OL
lending than overall lending occurred
each year not only for institutions as a
whole, but also for banks with less than
$100 million in assets, banks with $100
million to $1 billion in assets, and for
banks with more than $1 billion in
assets. At year-end 2004, banks’
CLD&OL loans totaled more than $300
billion, up nearly 40 percent from their
level of $217 billion two years earlier.
In addition, at banks with less than $100
million in assets, CLD&OL loans were a
higher percentage of total loans and
leases at year-end 2004 (7 percent) than
at banks with more than $1 billion in
assets (less than 5 percent). Nearly 88
percent of all banks reported holding
CLD&OL loans at year-end 2004,
including almost 79 percent of banks
with less than $100 million in assets
and more than 91 percent of banks with
more than $1 billion in assets.
In the Thrift Financial Report (TFR)
(Form 1313, OMB No. 1550–0023) that
the Office of Thrift Supervision (OTS)
collects from the savings associations
under its supervision, these institutions
are required to report the amount of
construction loans for 1–4 family
residential properties separately from
other construction loans. Charge-offs
and recoveries on 1–4 family residential
property construction loans are also
reported separately from other
construction loan charge-offs and
recoveries in the TFR
lects from the savings associations
under its supervision, these institutions
are required to report the amount of
construction loans for 1–4 family
residential properties separately from
other construction loans. Charge-offs
and recoveries on 1–4 family residential
property construction loans are also
reported separately from other
construction loan charge-offs and
recoveries in the TFR. The National
Association of Home Builders (NAHB),
in letters submitted to the agencies in
January 2003 and May 2005 in response
to the agencies’ requests for comment on
past proposed revisions to the Call
Report, has requested that the agencies
‘‘consider itemizing the construction
and land development lending data that
are currently aggregated’’ to distinguish
between different types of construction
loans. The NAHB noted that their
analysis of TFR data on construction
loans revealed that residential
construction loans ‘‘perform much
better than most other real estate loans’’
and expressed concern that the ‘‘current
lack of credible activity and
performance data’’ on construction
lending in the Call Report ‘‘impedes the
Agencies’’ ability to accurately evaluate
the level of risk associated with such
activities.’’
The agencies agree with the NAHB
that it would be beneficial to improve
their ability to monitor the construction
lending activities of individual banks
and the industry as a whole by
obtaining separate data on 1–4 family
residential CLD&OL loans and all other
CLD&OL loans, particularly in light of
the substantial growth in this type of
lending by banks. Such information
would also enable the agencies to
identify institutions that significantly
shift from 1–4 family residential
construction lending to other
construction lending, and vice versa,
and to identify when institutions that
had been solely 1–4 family residential
construction lenders move into other
types of construction lending
ubstantial growth in this type of
lending by banks. Such information
would also enable the agencies to
identify institutions that significantly
shift from 1–4 family residential
construction lending to other
construction lending, and vice versa,
and to identify when institutions that
had been solely 1–4 family residential
construction lenders move into other
types of construction lending.
Therefore, the agencies are proposing
to split the existing item for
‘‘Construction, land development, and
other land loans’’ in the loan schedule
(Schedule RC–C, part I, item 1.a), the
past due and nonaccrual schedule
(Schedule RC–N, item 1.a), and the
charge-offs and recoveries schedule
(Schedule RI–B, part I, item 1.a) into
separate items for ‘‘1–4 family
residential construction, land
development, and other land loans’’ and
‘‘Other construction, land development,
and other land loans.’’ In addition, the
agencies would similarly split the item
for ‘‘Commitments to fund commercial
real estate, construction, and land
development loans secured by real
estate’’ in the off-balance sheet items
schedule (Schedule RC–L, item 1.c.(1))
into two items.
2. Loans Secured by Nonfarm
Nonresidential Properties
Loans secured by nonfarm
nonresidential properties (commercial
real estate loans) include loans made to
the occupants of such properties and
loans to non-occupant investors. These
two types of commercial real estate
loans present different risk profiles.
Loans secured by owner-occupied
properties perform more like
commercial and industrial loans
because the success of the occupant’s
business is the primary source of
repayment. To ensure repayment of
loans to non-occupant investors, the
property must generate sufficient cash
flow from the parties who are the
occupants.
The volume of commercial real estate
loans at banks has also increased
significantly in recent years
properties perform more like
commercial and industrial loans
because the success of the occupant’s
business is the primary source of
repayment. To ensure repayment of
loans to non-occupant investors, the
property must generate sufficient cash
flow from the parties who are the
occupants.
The volume of commercial real estate
loans at banks has also increased
significantly in recent years. As with
CLD&OL loans, commercial real estate
loans grew more rapidly than loan
portfolios as a whole at commercial
banks and state-chartered savings banks
during 2003 and 2004, both for the
industry as a whole and for small,
medium, and large banks. At year-end
2004, banks’ commercial real estate
loans stood at nearly $700 billion, a
jump of 20 percent from the $584 billion
in such loans at year-end 2002. The
$700 billion in commercial real estate
loans represented almost 14 percent of
loans at all commercial banks and state-
chartered savings banks at year-end
2004, but such loans were 19 percent of
loans at banks with less than $100
million in assets versus 11 percent of
loans at banks with more than $1 billion
in assets. Almost all banks hold
commercial real estate loans, including
96 percent of banks with less than $100
million in assets and 93 percent of
banks with more than $1 billion in
assets.
Because of the significant and
growing level of bank involvement in
commercial real estate lending and the
different risk characteristics of owner-
occupied and other commercial
properties, separate reporting of these
two categories of commercial real estate
would enhance the agencies’ monitoring
and risk-scoping capabilities
and 93 percent of
banks with more than $1 billion in
assets.
Because of the significant and
growing level of bank involvement in
commercial real estate lending and the
different risk characteristics of owner-
occupied and other commercial
properties, separate reporting of these
two categories of commercial real estate
would enhance the agencies’ monitoring
and risk-scoping capabilities. The
agencies propose to split the existing
item for loans ‘‘Secured by nonfarm
nonresidential properties’’ in the loan
schedule (Schedule RC–C, part I, item
1.e), the past due and nonaccrual
schedule (Schedule RC–N, item 1.e),
and the charge-offs and recoveries
schedule (Schedule RI–B, part I, item
1.e) into separate items for loans
secured by owner-occupied nonfarm
nonresidential properties and loans
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49368
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
3 Banks with domestic offices only and less than
$300 million in total assets are not required to
provide this breakdown.
secured by other nonfarm
nonresidential properties.
When a commercial property that is
partially occupied by the owner and
partially occupied (or available to be
occupied) by other parties, the property
would be considered owner-occupied
when the owner occupies more than
half of the property’s usable space.
Properties such as hotels and motels
would not be considered owner-
occupied. The agencies request
comment on the reporting of partially
owner-occupied properties and on any
other definitional issues that may arise
when determining whether to report a
loan as secured by owner-occupied
property.
3. Retail and Commercial Leases
Banks with foreign offices or with
$300 million or more in total assets
currently report a breakdown of their
lease financing receivables between
those from U.S. and non-U.S
e reporting of partially
owner-occupied properties and on any
other definitional issues that may arise
when determining whether to report a
loan as secured by owner-occupied
property.
3. Retail and Commercial Leases
Banks with foreign offices or with
$300 million or more in total assets
currently report a breakdown of their
lease financing receivables between
those from U.S. and non-U.S. addressees
in Schedule RC–C, part I, items 10.a and
10.b, and certain related schedules.3
Because banks lease various types of
property to various types of customers,
the current addressee breakdown, in
which only a limited number of banks
report having leases to non-U.S.
addressees, does not provide
satisfactory risk-related information
about this type of financing activity.
When reporting information on their
loans that are not secured by real estate
in the Call Report loan schedule and
related schedules, banks distinguish, for
example, between consumer (retail)
loans and commercial loans. As with
retail and commercial loans, there are
differences between the underwriting of
and repayment sources for retail and
commercial leases.
The agencies believe that the different
risk characteristics of these two types of
leases warrant replacing the existing
addressee breakdown of leases with a
retail versus commercial lease
breakdown in the Call Report schedules
for loans and leases, past due and
nonaccrual assets, and charge-offs and
recoveries. Retail (consumer) leases
would be defined in a manner similar to
consumer loans, i.e., as leases to
individuals for household, family, and
other personal expenditures.
Commercial leases would encompass all
other lease financing receivables. This
proposed reporting change would affect
only the approximately 500 banks with
foreign offices or with $300 million or
more in total assets that have lease
financing receivables as assets.
4
a manner similar to
consumer loans, i.e., as leases to
individuals for household, family, and
other personal expenditures.
Commercial leases would encompass all
other lease financing receivables. This
proposed reporting change would affect
only the approximately 500 banks with
foreign offices or with $300 million or
more in total assets that have lease
financing receivables as assets.
4. Federal Home Loan Bank Advances
The Federal Home Loan Bank (FHLB)
System is an increasingly important
funding source for banks, particularly
community banks, with over 57 percent
of all banks reporting borrowings from
FHLBs as of December 31, 2004. From
year-end 2001 to year-end 2004, the
volume of FHLB advances to
commercial banks grew more than 25
percent to $250 billion. At the same
time, the array of advances offered by
the 12 FHLBs has expanded in recent
years, with many of the newer advance
products containing features that can
significantly alter an institution’s
interest rate risk profile.
The agencies currently collect
aggregate information on FHLB
advances that is stratified by remaining
maturity (Schedule RC–M, items 5.a (1)
through 5.a.(3)). This information does
not differentiate among types of advance
products, which means that the agencies
cannot distinguish products with lower
repricing risk (putable advances where
the bank has the right, but not the
obligation, to prepay the FHLB) from
products with higher repricing risk
(callable advances where the FHLB has
the right, but not the obligation, to
require the bank to prepay the advance
or establish a new advance).
Furthermore, the current reporting by
remaining maturity is based on the
contractual terms of the advances, but
this approach does not capture the
potential volatility associated with more
complex products that have various
embedded options.
To address these informational
deficiencies, the agencies are proposing
to add two additional breakdowns of
FHLB advances
establish a new advance).
Furthermore, the current reporting by
remaining maturity is based on the
contractual terms of the advances, but
this approach does not capture the
potential volatility associated with more
complex products that have various
embedded options.
To address these informational
deficiencies, the agencies are proposing
to add two additional breakdowns of
FHLB advances. The first would collect
data on four categories of advances:
Fixed rate, variable rate (where the
interest rate is tied to an index), callable
structured advances (where the FHLB
has the option to call the advance), and
other structured advances (putable,
convertible, or with caps, floors, or
other embedded derivatives). In the
second breakdown, banks would report
their advances based on the amount of
time until the next repricing date (one
year or less, over one year through three
years, over three years through five
years, and over five years). The existing
data reported on the remaining maturity
of FHLB advances would be modified
by adding a new remaining maturity
period of over five years, with a
corresponding modification to the
remaining maturity periods used for
‘‘Other borrowings’’ in Schedule RC–M,
item 5.b. This additional information
would help the agencies’ assessments of
interest rate risk, liquidity, and funds
management and, in particular, would
assist examiners with their risk-scoping
of examinations, which can be
performed off-site and thereby reduce
on-site examination hours.
Banks currently report standby letters
of credit issued by a Federal Home Loan
Bank on their behalf in Schedule RC–L,
item 9, ‘‘All other off-balance sheet
liabilities,’’ when these letters of credit
exceed 10 percent of the bank’s total
equity capital. When these letters of
credit exceed 25 percent of total equity
capital, the amount must also be
separately identified and disclosed in
Schedule RC–L
tly report standby letters
of credit issued by a Federal Home Loan
Bank on their behalf in Schedule RC–L,
item 9, ‘‘All other off-balance sheet
liabilities,’’ when these letters of credit
exceed 10 percent of the bank’s total
equity capital. When these letters of
credit exceed 25 percent of total equity
capital, the amount must also be
separately identified and disclosed in
Schedule RC–L. Because of the growth
in this activity, the agencies would add
a preprinted caption to Schedule RC–L,
item 9.c, to facilitate the reporting and
identification of standby letters of credit
issued by a Federal Home Loan Bank
when the amount exceeds 25 percent of
total equity capital.
5. Nonaccrual Assets
Information on nonaccrual assets is a
key indicator of the credit quality of a
bank’s assets. Effective December 31,
2003, bank holding companies that file
the Consolidated Financial Statements
for Bank Holding Companies (FR Y–9C)
(OMB No. 7100–0128) with the Board
began to complete two new items in the
report’s Schedule HC–N, ‘‘Past Due and
Nonaccrual Loans, Leases, and Other
Assets’: Memorandum item 7,
‘‘Additions to nonaccrual assets during
the quarter,’’ and Memorandum item 8,
‘‘Nonaccrual assets sold during the
quarter.’’ The agencies propose to add
these same items to the comparable Call
Report schedule (Schedule RC–N).
Although the overall quarter-to-
quarter change in a bank’s nonaccrual
assets can be calculated based on the
quarter-end totals reported for such
assets in Schedule RC–N, the reasons for
the change cannot be determined from
the information currently reported in
Schedule RC–N. Information relating to
inflows and outflows of nonaccrual
assets would enhance the agencies’
ability to track shifts in the credit
quality of a bank’s assets. Information
on additions to nonaccrual assets during
the quarter would indicate the extent of
erosion or improvement in the quality of
a bank’s assets
cannot be determined from
the information currently reported in
Schedule RC–N. Information relating to
inflows and outflows of nonaccrual
assets would enhance the agencies’
ability to track shifts in the credit
quality of a bank’s assets. Information
on additions to nonaccrual assets during
the quarter would indicate the extent of
erosion or improvement in the quality of
a bank’s assets. Data on the outflow of
nonaccrual assets, such as sale activity,
would also provide insight into the
approaches taken by a bank’s
management to the resolution of
problem assets. Thus, the proposed new
items would assist the agencies in
assessing a bank’s ability to manage
credit risk and deal with credit
problems.
For the industry as a whole,
information on inflows and outflows
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49369
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4 Loans held for investment are loans that the
bank has the intent and ability to hold for the
foreseeable future or until maturity or payoff.
would aid in the evaluation of credit
cycle trends. For example, a slowdown
in inflows of nonaccrual assets may
indicate an approaching peak level of
nonperforming assets after the end of a
recession. The information on
nonaccrual asset sales would increase
the agencies’ understanding of the
evolution of the secondary market for
sales of distressed assets, which has
only come into existence in recent
years.
Because bank holding companies that
file the FR Y–9C report (i.e., bank
holding companies with total
consolidated assets of $150 million or
more and certain multibank holding
companies) have reported the volume of
additions to nonaccrual assets and sales
of such assets for the past two years,
banks that are subsidiaries of these
holding companies should have systems
in place for compiling these data
holding companies that
file the FR Y–9C report (i.e., bank
holding companies with total
consolidated assets of $150 million or
more and certain multibank holding
companies) have reported the volume of
additions to nonaccrual assets and sales
of such assets for the past two years,
banks that are subsidiaries of these
holding companies should have systems
in place for compiling these data. Other
banks, however, may not currently track
these data, although the agencies believe
that sales of nonaccrual assets by small
banks are infrequent at present. Thus,
the agencies are particularly interested
in receiving comments from banks that
do not fall within the scope of an FR
Y–9C report about their ability to report
the amounts of quarterly additions to,
and sales of, nonaccrual assets
beginning March 31, 2006.
6. Information on Credit Derivatives
The volume of credit derivatives, as
measured by their notional amount, has
increased significantly at banks over the
past several years, rising from an
aggregate notional amount of $395
billion at year-end 2001 to $3.1 trillion
at March 31, 2005. From the end of the
fourth quarter of 2004 to the end of the
first quarter of 2005 alone, the notional
amount of credit derivatives reported by
banks increased by $778 billion or 33
percent. However, despite this volume,
the number of banks currently
participating in the credit derivatives
market, almost all of which have in
excess of $1 billion in assets, is
extremely small: 19 banks act as a
guarantor by selling credit protection to
other parties (i.e., they are assuming
credit risk), while 26 banks are buying
credit protection from other parties (i.e.,
they are hedging credit risk). A number
of these banks enter into some credit
derivatives as guarantor and other credit
derivatives as beneficiaries
ave in
excess of $1 billion in assets, is
extremely small: 19 banks act as a
guarantor by selling credit protection to
other parties (i.e., they are assuming
credit risk), while 26 banks are buying
credit protection from other parties (i.e.,
they are hedging credit risk). A number
of these banks enter into some credit
derivatives as guarantor and other credit
derivatives as beneficiaries.
To gain a better understanding of the
nature and trends of the credit
derivative activities that are
concentrated in a small number of large
banks, the agencies are proposing to
expand the information they collect in
several Call Report schedules. First, in
Schedule RC–L, item 7, where banks
currently report the notional amounts of
the credit derivatives on which they are
the guarantor and on which they are the
beneficiary, these banks would be
required to provide a breakdown of
these notional amounts by type of credit
derivative: credit default swaps, total
return swaps, credit options, and other
credit derivatives. Banks would also
report the maximum amounts they
would pay and receive on credit
derivatives on which they are the
guarantor and on which they are the
beneficiary, respectively.
Second, in Schedule RC–R,
Memorandum item 2, where banks
currently present a maturity distribution
of their derivative contracts that are
subject to the risk-based capital
requirements, credit derivatives would
be added as a new category of
derivatives with their remaining
maturities reported separately for those
that are investment grade and those that
are subinvestment grade.
Third, in Schedule RI, Memorandum
item 8, banks that reported average
trading assets of $2 million or more for
any quarter of the preceding calendar
year currently provide a four-way
breakdown of trading revenue by type of
risk exposure
category of
derivatives with their remaining
maturities reported separately for those
that are investment grade and those that
are subinvestment grade.
Third, in Schedule RI, Memorandum
item 8, banks that reported average
trading assets of $2 million or more for
any quarter of the preceding calendar
year currently provide a four-way
breakdown of trading revenue by type of
risk exposure. When banks that must
complete Memorandum item 8 hold
credit derivatives for trading purposes,
they have to report the revenue from
these derivatives in one of the four
existing risk exposure categories, none
of which is particularly suitable for
reporting such revenue. Accordingly,
the agencies propose to add a new risk
exposure category for credit derivatives.
This information would address the
current weakness in the reporting of
trading revenue, but, more importantly,
it would enable the agencies to begin to
identify the extent to which credit
derivatives held for trading purposes
contribute to a bank’s trading revenue
each period and over time.
Finally, the agencies propose to add a
new Memorandum item to Schedule RI,
‘‘Income Statement,’’ for the changes in
fair value recognized in earnings on
credit derivatives that are held for
purposes other than trading, e.g., to
economically hedge credit exposures
arising from nontrading assets (such as
available-for-sale securities or loans
held for investment 4) or unused lines of
credit. In this regard, the agencies
reiterate that credit derivatives held for
purposes other than trading should not
be reported as trading assets or
liabilities in the Call Report and the
changes in fair value of such credit
derivatives should not be reported as
trading revenue
nontrading assets (such as
available-for-sale securities or loans
held for investment 4) or unused lines of
credit. In this regard, the agencies
reiterate that credit derivatives held for
purposes other than trading should not
be reported as trading assets or
liabilities in the Call Report and the
changes in fair value of such credit
derivatives should not be reported as
trading revenue. Consistent with the
existing guidance in the Glossary entry
for ‘‘Derivative contracts’’ in the Call
Report instructions, credit derivatives
held for purposes other than trading
with positive and negative fair values
should be reported in ‘‘Other assets’’
and ‘‘Other liabilities,’’ respectively, on
the Call Report balance sheet. Changes
in fair value of derivatives held for
purposes other than trading that are not
designated as hedging instruments
should be reported consistently as either
‘‘Other noninterest income’’ or ‘‘Other
noninterest expense’’ in the Call Report
income statement.
7. 1–4 Family Residential Mortgage
Banking Activities
Mortgage banking activities,
particularly those involving closed-end
1–4 family residential mortgages, have
become an increasingly important line
of business for many banks. Mortgage
banking revenues are a significant
component of earnings for these
institutions and have been critical to the
recent record earnings achieved by the
banking industry as a whole. The
growth of the industry’s mortgage
banking activities also reflects the
central role that securitization
mechanisms now play in the mortgage
market.
However, these activities and the
revenues they generate can be quite
volatile over the business and interest
rate cycle. Furthermore, a bank’s
mortgage banking operations can raise
significant management and supervisory
concerns related to credit, liquidity,
interest rate, and operational risk
lso reflects the
central role that securitization
mechanisms now play in the mortgage
market.
However, these activities and the
revenues they generate can be quite
volatile over the business and interest
rate cycle. Furthermore, a bank’s
mortgage banking operations can raise
significant management and supervisory
concerns related to credit, liquidity,
interest rate, and operational risk.
Understanding the importance of
mortgage banking activities to an
institution’s financial condition and risk
profile requires information about the
transactional flows associated with
residential mortgages. In this regard, the
OTS has collected a large set of cash
flow data on mortgage loan
disbursements, purchases, and sales in
the TFR for more than a decade.
After considering the OTS’s reporting
requirements as well as the types of
information commonly disclosed by
banking organizations with large
mortgage banking operations, the
agencies are proposing to add a new
Schedule RC–P that would contain a
series of items that are focused on
closed-end 1–4 family residential
mortgage loans, with data reported
separately for first liens and junior liens.
The new items would cover loans
originated, purchased, and sold during
the quarter, loans held for sale at
quarter-end, and the year-to-date
noninterest income earned from closed-
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mily residential
mortgage loans, with data reported
separately for first liens and junior liens.
The new items would cover loans
originated, purchased, and sold during
the quarter, loans held for sale at
quarter-end, and the year-to-date
noninterest income earned from closed-
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49370
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
5 However, commissions and fees from sales of
annuities by a bank’s trust department (or a
consolidated trust company subsidiary) that are
executed in a fiduciary capacity are to be reported
in ‘‘Income from fiduciary activities’’ in Schedule
RI, item 5.a, and income from sales of annuities to
bank customers by a bank’s securities brokerage
subsidiary are reported in ‘‘Investment banking,
advisory, brokerage, and underwriting fees and
commissions’’ in Schedule RI, item 5.d.
end 1–4 family residential mortgage
banking activities. This income would
consist of the portion of a bank’s ‘‘Net
servicing fees,’’ ‘‘Net securitization
income,’’ and ‘‘Net gains (losses) on
sales of loans and leases’’ (Schedule RI,
items 5.f, 5.g, and 5.i) attributable to
closed-end 1–4 family residential
mortgage loans.
The proposed new items would be
reported by all banks with $1 billion or
more in total assets. In addition, banks
with less than $1 billion in assets that
are significantly involved in mortgage
banking activities, as determined by
their primary Federal regulator, could
be directed by their regulator to report
this mortgage banking information.
For loans originated, purchased, and
sold during the quarter, banks would
report the principal amount of these
loans
more in total assets. In addition, banks
with less than $1 billion in assets that
are significantly involved in mortgage
banking activities, as determined by
their primary Federal regulator, could
be directed by their regulator to report
this mortgage banking information.
For loans originated, purchased, and
sold during the quarter, banks would
report the principal amount of these
loans. Originations would include those
loans for which the origination and
underwriting process was handled by
the bank or a consolidated subsidiary of
the bank, but would exclude those loans
for which the origination and
underwriting process was handled by
another party, including a
correspondent or mortgage broker, even
if the loan was closed in the name of the
bank or a consolidated subsidiary of the
bank. Such loans would be treated as
purchases, as would acquisitions of
loans closed in the name of another
party. Sales of loans would include
those transfers of loans that have been
accounted for as sales in accordance
with generally accepted accounting
principles, i.e., where the loans are no
longer included in the bank’s
consolidated total assets. Loans held for
sale at quarter-end would be reported at
the lower of cost or fair value, consisent
with their presentation in the Call
Report balance sheet. The agencies
request comment on the reporting
approach discussed in this paragraph.
8. Income Statement Reclassification of
Income From Annuity Sales
In the Call Report income statement
(Schedule RI), banks currently report
commissions and fees from sales of
annuities (fixed, variable, and deferred)
and related referral and management
fees as a component of item 5.h.(2),
‘‘Income from other insurance
activities.’’ 5 Because annuities are
deemed to be financial investment
products rather than insurance, the
agencies propose to revise the
instructions for item 5.h.(2) and item
5.d, ‘‘Investment banking, advisory,
brokerage, and underwriting fees and
commissions,’’ by moving the refer
and related referral and management
fees as a component of item 5.h.(2),
‘‘Income from other insurance
activities.’’ 5 Because annuities are
deemed to be financial investment
products rather than insurance, the
agencies propose to revise the
instructions for item 5.h.(2) and item
5.d, ‘‘Investment banking, advisory,
brokerage, and underwriting fees and
commissions,’’ by moving the references
to annuities in the former item to the
latter item. This change in the income
statement classification for commissions
and fees from annuity sales and related
income should affect no more than 25
percent of all banks based on the
number of banks that currently report
‘‘Income from the sale and servicing of
mutual funds and annuities’’ in
Schedule RI, Memorandum item 2.
9. Investment Banking, Advisory,
Brokerage, and Underwriting Income
As the caption for Schedule RI, item
5.d, ‘‘Investment banking, advisory,
brokerage, and underwriting fees and
commissions,’’ indicates, this income
statement item commingles noninterest
income from a variety of activities. At
present, approximately 25 percent of all
banks report that they earn income from
these activities. However, the
percentage of institutions reporting such
income varies significantly as a function
of bank size, ranging from less than 12
percent of banks with less than $100
million in assets to more than 60
percent of banks with $1 billion or more
in assets. The smaller banks that report
income in Schedule RI, item 5.d,
generally are not involved in investment
banking and securities underwriting
activities, but generate fees and
commissions from sales of one or more
types of investment products to
customers
less than 12
percent of banks with less than $100
million in assets to more than 60
percent of banks with $1 billion or more
in assets. The smaller banks that report
income in Schedule RI, item 5.d,
generally are not involved in investment
banking and securities underwriting
activities, but generate fees and
commissions from sales of one or more
types of investment products to
customers. (In addition, as discussed in
the preceding section, some banks
generate commissions and fees from
sales of annuities and the agencies are
proposing to include such income in
Schedule RI, item 5.d.)
In order to better understand the
sources of banks’ noninterest income,
the agencies are proposing to
distinguish between banks’ investment
banking (dealer) activities and their
sales (brokerage) activities by splitting
item 5.d (after moving commissions and
fees from annuity sales and related
income into this income statement
category from item 5.h.(2) as discussed
in the preceding section) into three
separate items. As revised, item 5.d
would be subdivided into items for
‘‘Fees and commissions from securities
brokerage,’’ ‘‘Fees and commissions
from annuity sales,’’ and ‘‘Investment
banking, advisory, and underwriting
fees and commissions.’’ Securities
brokerage income would include fees
and commissions from sales of mutual
funds and from purchases and sales of
other securities and money market
instruments for customers (including
other banks) where the bank is acting as
agent.
10. Certain Secured Borrowings
When banks raise funds from sources
other than deposit liabilities, they may
do so on a secured or unsecured basis.
‘‘Securities sold under agreements to
repurchase’’ (Schedule RC, item 14.b)
and ‘‘Federal Home Loan Bank
advances’’ (Schedule RC–M, item 5.a)
always represent secured borrowings,
whereas ‘‘Subordinated notes and
debentures’’ (Schedule RC, item 19)
must be unsecured
rowings
When banks raise funds from sources
other than deposit liabilities, they may
do so on a secured or unsecured basis.
‘‘Securities sold under agreements to
repurchase’’ (Schedule RC, item 14.b)
and ‘‘Federal Home Loan Bank
advances’’ (Schedule RC–M, item 5.a)
always represent secured borrowings,
whereas ‘‘Subordinated notes and
debentures’’ (Schedule RC, item 19)
must be unsecured. However, amounts
included in ‘‘Federal funds purchased
(in domestic offices)’’ (Schedule RC,
item 14.a) and ‘‘Other borrowings’’
(Schedule RC–M, item 5.b) can be
secured or unsecured, but this cannot be
determined at present from the Call
Report. This uncertainty adversely
affects the agencies’ assessment of
banks’ liquidity positions. Moreover, as
a bank’s condition deteriorates, it
usually encounters increasing difficulty
in rolling over existing unsecured debt
or borrowing additional funds on an
unsecured basis. When an institution
fails, the relative volume of secured and
unsecured borrowings directly
influences the loss to the FDIC-
administered deposit insurance fund.
Thus, to better understand the
structure of banks’ nondeposit liabilities
and the effect of these liabilities on
liquidity, the agencies are proposing to
add two items to Schedule RC–M in
which banks would report the secured
portion of their ‘‘Federal funds
purchased’’ and their ‘‘Other
borrowings.’’ At present, only about one
fifth of all banks have purchased federal
funds and the same percentage of
institutions have other borrowings. The
use of these funding sources increases
in relation to bank size, with 15 percent
of banks with less than $100 million in
assets reporting federal funds purchased
and about 11 percent of such banks
reporting other borrowings. The
respective percentages for these two
types of liabilities increase to nearly 53
and 64 percent for banks with $1 billion
or more in assets.
11
r borrowings. The
use of these funding sources increases
in relation to bank size, with 15 percent
of banks with less than $100 million in
assets reporting federal funds purchased
and about 11 percent of such banks
reporting other borrowings. The
respective percentages for these two
types of liabilities increase to nearly 53
and 64 percent for banks with $1 billion
or more in assets.
11. Life Insurance Assets
Banks include their holdings of life
insurance assets (i.e., the cash surrender
value reported to the bank by the
insurance carrier, less any applicable
surrender charges not reflected by the
carrier in this reported value) in
Schedule RC–F, item 5, ‘‘All other
assets.’’ If the carrying amount of a
bank’s life insurance assets included in
item 5 is greater than $25,000 and
exceeds 25 percent of its ‘‘All other
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49371
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
assets,’’ the bank must disclose this
carrying amount in item 5.b.
In December 2004, the agencies issued
an Interagency Statement on the
Purchase and Risk Management of Life
Insurance to provide guidance to
institutions to help ensure that their risk
management processes for bank-owned
life insurance (BOLI) are consistent with
safe and sound banking practices. Given
the risks associated with BOLI, the
Interagency Statement advises
institutions that it is generally not
prudent for an institution to hold BOLI
with an aggregate cash surrender value
that exceeds 25 percent of the
institution’s capital as measured in
accordance with its primary Federal
regulator’s concentration guidelines
(BOLI) are consistent with
safe and sound banking practices. Given
the risks associated with BOLI, the
Interagency Statement advises
institutions that it is generally not
prudent for an institution to hold BOLI
with an aggregate cash surrender value
that exceeds 25 percent of the
institution’s capital as measured in
accordance with its primary Federal
regulator’s concentration guidelines.
Although more than 40 percent of all
banks report the amount of their life
insurance assets in item 5.b under the
current 25 percent of ‘‘All other assets’’
disclosure threshold, this reporting
mechanism does not ensure that the
agencies are able to monitor whether all
banks holding life insurance assets are
approaching or have exceeded the 25
percent of capital concentration
threshold. As a consequence, the
agencies are proposing to revise Call
Report Schedule RC–F by adding a new
item 5 in which all banks would report
their holdings of life insurance assets
and by renumbering existing item 5,
‘‘All other assets,’’ as item 6. The
agencies note that all savings
associations are currently required to
report the amount of their life insurance
assets in the TFR (Schedule SC, lines
SC615 and SC625).
12. Income From International
Operations
In the FFIEC 031 version of the Call
Report, banks with foreign offices whose
international operations account for
more than 10 percent of total revenues,
total assets, or net income must
complete Schedule RI–D, ‘‘Income from
International Operations.’’ Banks that
must complete this schedule, of which
there are less than 40, are directed to
report estimates of the amounts of their
income and expense attributable to
international operations after
eliminating intrabank accounts. These
estimates should reflect all appropriate
internal allocations of income and
expense, whether or not recorded in that
manner in the bank’s formal accounting
records
at
must complete this schedule, of which
there are less than 40, are directed to
report estimates of the amounts of their
income and expense attributable to
international operations after
eliminating intrabank accounts. These
estimates should reflect all appropriate
internal allocations of income and
expense, whether or not recorded in that
manner in the bank’s formal accounting
records. The agencies have found that
the term ‘‘international operations’’ is
subject to varying interpretations and
has led to differences between what
some banks report as international
income in their internal management
reports compared to the income
reported in Schedule RI–D.
In order to obtain better income data
about banks’ foreign operations in a less
burdensome manner, the agencies are
proposing to revise the approach taken
in Schedule RI–D. Instead of collecting
income from ‘‘international operations,’’
the agencies would begin to capture
income from foreign offices as that term
is currently defined for Call Report
purposes. This revised approach should
improve the usefulness of the Schedule
RI–D data in assessing the significance
of foreign office net income to banks’
overall net income. The threshold for
completing revised Schedule RI–D
would continue to be based on a 10
percent test, but the total revenues, total
assets, and net income used for this test
would be based on foreign office
revenues, assets, and net income, which
should present a clearer standard than
at present.
The data items in proposed revised
Schedule RI–D, ‘‘Income from Foreign
Offices,’’ would for the most part mirror
categories of income and expense
reported in Schedule RI
on a 10
percent test, but the total revenues, total
assets, and net income used for this test
would be based on foreign office
revenues, assets, and net income, which
should present a clearer standard than
at present.
The data items in proposed revised
Schedule RI–D, ‘‘Income from Foreign
Offices,’’ would for the most part mirror
categories of income and expense
reported in Schedule RI. The categories
that would be used for foreign offices
would include total interest income;
total interest expense; provision for loan
and lease losses; trading revenue;
investment banking, advisory,
brokerage, and underwriting fees and
commissions; net securitization income;
all other noninterest income; realized
gains (losses) on held-to-maturity and
available-for-sale securities; total
noninterest expense; applicable income
taxes; and extraordinary items and other
adjustments, net of income taxes. The
amounts reported in the preceding
income and expense categories would
be reported gross, i.e., before
eliminating the effects of transactions
with domestic offices, which would be
a change from the current Schedule RI–
D approach under which amounts are
reported net of intrabank transactions.
Banks would also report the amount of
any adjustments to pretax income for
internal allocations to foreign offices for
the effects of equity capital on overall
bank funding costs before arriving at net
income attributable to foreign offices
before internal allocations of income
and expense. To complete the
remainder of revised Schedule RI–D,
banks would next report the amount of
internal allocations of income and
expense applicable to foreign offices,
followed by the amount of eliminations
arising from the consolidation of foreign
offices with domestic offices. Finally,
banks would then report their
consolidated net income attributable to
foreign offices.
13
and expense. To complete the
remainder of revised Schedule RI–D,
banks would next report the amount of
internal allocations of income and
expense applicable to foreign offices,
followed by the amount of eliminations
arising from the consolidation of foreign
offices with domestic offices. Finally,
banks would then report their
consolidated net income attributable to
foreign offices.
13. Scope of Securitizations To Be
Included in Schedule RC–S
In column G of Schedule RC–S,
‘‘Servicing, Securitization, and Asset
Sale Activities,’’ banks report
information on securitizations and on
asset sales with recourse or other seller-
provided credit enhancements involving
loans and leases other than those
covered in columns A through F.
Although the scope of Schedule RC–S
was intended to cover all of a bank’s
securitizations and credit-enhanced
asset sales, as currently structured
column G does not capture transactions
involving assets other than loans and
leases. As a result, securitization
transactions involving such assets as
securities, for example, have not been
reported in Schedule RC–S. Therefore,
the agencies propose to revise the scope
of column G to encompass ‘‘All Other
Loans, All Leases, and All Other Assets’’
to ensure that they can identify and
monitor the full range of banks’
involvement in and credit exposure to
securitizations and asset sales. With
fewer than 30 banks reporting data on
securitizations in column G of Schedule
RC–S at present, the proposed change in
the scope of column G is expected to
affect only a nominal number of banks.
C. Other Matters
1. Instructional Clarification for
Servicing of Home Equity Lines
Banks report the outstanding
principal balance of assets serviced for
others in Schedule RC–S, Memorandum
item 2. In Memorandum items 2.a and
2.b, the amounts of 1–4 family
residential mortgages serviced with
recourse and without recourse,
respectively, are reported
affect only a nominal number of banks.
C. Other Matters
1. Instructional Clarification for
Servicing of Home Equity Lines
Banks report the outstanding
principal balance of assets serviced for
others in Schedule RC–S, Memorandum
item 2. In Memorandum items 2.a and
2.b, the amounts of 1–4 family
residential mortgages serviced with
recourse and without recourse,
respectively, are reported.
Memorandum item 2.c covers all other
financial assets serviced for others, but
banks are required to report the amount
of such servicing only if the servicing
volume is more than $10 million. The
instructions for Memorandum items 2.a
and 2.b do not explicitly define ‘‘1–4
family residential mortgages.’’ However,
the caption for column A of the body of
Schedule RC–S is ‘‘1–4 family
residential loans,’’ which the
instructions for column A describe as
closed-end loans secured by first or
junior liens on 1–4 family residential
properties as defined for Schedule RC–
C, part I, items 1.c.(2)(a) and (b).
Some banks have asked whether
Memorandum items 2.a and 2.b should
include servicing of home equity lines
of credit because such lines are also
secured by 1–4 family residential
properties. Information on
securitizations and asset sales involving
home equity lines is reported in column
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s have asked whether
Memorandum items 2.a and 2.b should
include servicing of home equity lines
of credit because such lines are also
secured by 1–4 family residential
properties. Information on
securitizations and asset sales involving
home equity lines is reported in column
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Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
B of the body of Schedule RC–S. To
resolve the questions about the scope of
Memorandum items 2.a and 2.b, the
agencies are proposing to clarify the
instructions by stating that these two
items should include servicing of
closed-end loans secured by first or
junior liens on 1–4 family residential
properties only. Servicing of home
equity lines would be included in
Memorandum item 2.c.
2. Officer Declaration and Director
Attestation Requirements and
Signatures
The Call Report must be signed by an
authorized officer of the bank and
attested to by not less than two directors
(trustees) for state nonmember banks
and three directors for national and
State member banks. As required by
statute, the officer declaration and
director attestation address the
correctness of the information reported
in the Call Report. The statute also
recognizes that banks are responsible for
maintaining procedures to ensure the
accuracy of this information.
Given the importance placed upon the
quality of the information reported in
the Call Report, the agencies believe that
the chief executive officer and chief
financial officer are the most
appropriate officers within a bank to
sign a declaration concerning the
preparation of the report. Similarly,
because of the duties normally carried
out by the audit committee of the board
of directors, audit committee members
are the most appropriate directors to
attest to the correctness of the report
ies believe that
the chief executive officer and chief
financial officer are the most
appropriate officers within a bank to
sign a declaration concerning the
preparation of the report. Similarly,
because of the duties normally carried
out by the audit committee of the board
of directors, audit committee members
are the most appropriate directors to
attest to the correctness of the report.
The agencies recognize, however, that
some banks may not have audit
committees and that, at some banks, the
same individual may perform the
functions of both the chief executive
officer and the chief financial officer.
The agencies plan to revise the
existing officer declaration to require
that the Call Report be signed by each
bank’s chief executive officer (or the
person performing similar functions)
and chief financial officer (or the person
performing similar functions), who may
be the same person. The revised
declaration would also state that these
officers are responsible for establishing
and maintaining adequate internal
control over financial reporting,
including controls over regulatory
reports. The director attestation would
be revised to require that the directors
who sign be members of the bank’s
audit committee. If the bank has no
audit committee or if the committee has
less than the two or three directors
required to attest to the Call Report,
other directors would sign the
attestation. The revised director
attestation would also indicate that the
directors signing the attestation have
reviewed the bank’s Call Report.
III. Request for Comment
Public comment is requested on all
aspects of this joint notice. As
previously mentioned, the agencies
particularly wish to encourage banks
and other interested parties to comment
on such matters as data availability, data
alternatives, and reporting thresholds
for each proposal for new or revised
data. In addition, comments are invited
on:
bank’s Call Report.
III. Request for Comment
Public comment is requested on all
aspects of this joint notice. As
previously mentioned, the agencies
particularly wish to encourage banks
and other interested parties to comment
on such matters as data availability, data
alternatives, and reporting thresholds
for each proposal for new or revised
data. In addition, comments are invited
on:
(a) Whether the proposed revisions to
the Call Report collections of
information 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 and will be summarized or
included in the agencies’ requests for
OMB approval. All comments will
become a matter of public record.
Written comments should address the
accuracy of the burden estimates and
ways to minimize burden as well as
other relevant aspects of the information
collection request.
Dated: August 16, 2005.
Stuart E. Feldstein,
Assistant Director, Legislative and Regulatory
Activities Division, Office of the Comptroller
of the Currency.
Board of Governors of the Federal Reserve
System, August 18, 2005.
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, DC, this 17th day of
August, 2005.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc
Stuart E. Feldstein,
Assistant Director, Legislative and Regulatory
Activities Division, Office of the Comptroller
of the Currency.
Board of Governors of the Federal Reserve
System, August 18, 2005.
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, DC, this 17th day of
August, 2005.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 05–16680 Filed 8–22–05; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment
Request for Form 13013C
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
SUMMARY: The Department of the
Treasury, as part of its continuing effort
to reduce paperwork and respondent
burden, invites the general public and
other Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995,
Public Law 104–13 (44 U.S.C.
3506(c)(2)(A)). Currently, the IRS is
soliciting comments concerning Form
13013C, Taxpayer Advocacy Panel
(TAP) Membership Application.
DATES: Written comments should be
received on or before October 24, 2005
to be assured of consideration.
ADDRESSES: Direct all written comments
to Glenn P. Kirkland, Internal Revenue
Service, room 6516, 1111 Constitution
Avenue, NW., Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the form should be directed to
R. Joseph Durbala, (202) 622–3634,
Internal Revenue Service, room 6516,
1111 Constitution Avenue, NW.,
Washington, DC 20224, or through the
internet at RJoseph.Durbala@irs.gov.
SUPPLEMENTARY INFORMATION:
Title: Taxpayer Advocacy Panel (TAP)
Membership Application.
OMB Number: 1545–1788.
Form Number: 13013C.
Abstract: Form 13013C is an
application to volunteer to serve on the
Taxpayer Advocacy Panel (TAP), as an
advisory panel to the Internal Revenue
Service
111 Constitution Avenue, NW.,
Washington, DC 20224, or through the
internet at RJoseph.Durbala@irs.gov.
SUPPLEMENTARY INFORMATION:
Title: Taxpayer Advocacy Panel (TAP)
Membership Application.
OMB Number: 1545–1788.
Form Number: 13013C.
Abstract: Form 13013C is an
application to volunteer to serve on the
Taxpayer Advocacy Panel (TAP), as an
advisory panel to the Internal Revenue
Service. The TAP application is
necessary for the purpose of recruiting
perspective members to voluntarily
participate on the Taxpayer Advocacy
Panel for the Internal Revenue Service.
It is necessary to gather information to
rank applicants as well as to balance the
panels demographically.
Current Actions: There are no changes
being made to the form at this time.
Type of Review: Extension of a
currently approved collection.
Affected Public: Individuals, and
business or other for-profit
organizations.
Estimated Number of Respondents:
1,200.
Estimated Time per Respondent: 1
hour, 30 minutes.
VerDate Aug<18>2005
15:03 Aug 22, 2005
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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/FDIC_FIL05086. Check the current official text before relying on it. Not legal advice.