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29147
Federal Register / Vol. 82, No. 122 / Tuesday, June 27, 2017 / Notices
for such a waiver has been received by
the Maritime Administration (MARAD).
This notice is being published to solicit
comments intended to assist MARAD in
determining whether a suitable vessel of
the United States is available that could
perform the required services. If no
suitable U.S.-flag vessel is available, the
Maritime Administrator may issue a
waiver necessary to comply with USCG
Aquaculture Support regulations. A
brief description of the proposed
aquaculture support service is listed in
the SUPPLEMENTARY INFORMATION section
below.
DATES: Submit comments on or before
July 27, 2017.
ADDRESSES: You may submit comments
identified by DOT Docket Number
MARAD–2017–0113 by any of the
following methods:
• On-line via the Federal Electronic
Portal: http://www.regulations.gov.
Search using ‘‘MARAD–2017–0113’’
and follow the instructions for
submitting comments.
• Mail/Hand-Delivery/Courier:
Docket Management Facility; U.S.
Department of Transportation, 1200
New Jersey Avenue SE., Room W12–
140, Washington, DC 20590. Submit
comments in an unbound format, no
larger than 81⁄2 by 11 inches, suitable for
copying and electronic filing.
Reference Materials and Docket
Information: You may view the
complete application, including the
aquaculture support technical service
requirements, and all public comments
at the DOT Docket on-line via http://
www.regulations.gov. Search using
‘‘MARAD–2017–0113.’’ All comments
received will be posted without change
to the docket, including any personal
information provided. The Docket
Management Facility is open 9:00 a.m.
to 5:00 p.m., Monday through Friday,
except on Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Bianca Carr, U.S. Department of
Transportation, Maritime
Administration, 1200 New Jersey
Avenue SE., Room W23–453,
Washington, DC 20590. Telephone 202–
366–9309, Email Bianca.carr@dot.gov
e docket, including any personal
information provided. The Docket
Management Facility is open 9:00 a.m.
to 5:00 p.m., Monday through Friday,
except on Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Bianca Carr, U.S. Department of
Transportation, Maritime
Administration, 1200 New Jersey
Avenue SE., Room W23–453,
Washington, DC 20590. Telephone 202–
366–9309, Email Bianca.carr@dot.gov.
If you have questions on viewing the
Docket, call Docket Operations,
telephone: (800) 647–5527.
SUPPLEMENTARY INFORMATION: As a result
of the enactment of the Coast Guard
Authorization Act of 2010, codified at
46 U.S.C. 12102, the Secretary of
Transportation has the discretionary
authority to issue waivers allowing
documented vessels with registry
endorsements or foreign flag vessels to
be used in operations that treat
aquaculture fish for or protect
aquaculture fish from disease, parasitic
infestation, or other threats to their
health when suitable vessels of the
United States are not available that
could perform those services. The
Secretary has delegated this authority to
the Maritime Administrator. Pursuant to
this authority, MARAD is providing
notice of the service requirements
proposed by Cooke Aquaculture (Cooke)
in order to make a U.S.-flag vessel
availability determination. Specifics can
be found in Cooke’s application letter
posted in the docket.
In order to comply with USCG
Aquaculture Support regulations at 46
CFR part 106, Cooke is seeking a
MARAD Aquaculture Waiver to operate
the vessels SADIE JANE as follows:
Intended Commercial Use of Vessel:
‘‘to use one highly-specialized foreign-
flag vessel referred to as a ‘‘wellboat’’ (or
‘‘live fish carrier’’) to treat Cooke’s
swimming inventory of farmed Atlantic
salmon in the company’s salt-water
grow-out pens off Maine’s North
Atlantic Coast. This treatment prevents
against parasitic infestation by sea lice
that is highly destructive to the salmon’s
health.’’
Geographic Region: ‘‘off Maine’s
North Atlantic Coast’’
oreign-
flag vessel referred to as a ‘‘wellboat’’ (or
‘‘live fish carrier’’) to treat Cooke’s
swimming inventory of farmed Atlantic
salmon in the company’s salt-water
grow-out pens off Maine’s North
Atlantic Coast. This treatment prevents
against parasitic infestation by sea lice
that is highly destructive to the salmon’s
health.’’
Geographic Region: ‘‘off Maine’s
North Atlantic Coast’’.
Requested Time Period: ‘‘2017
calendar year, from August 10, 2017 to
December 31, 2017.’’
Interested parties may submit
comments providing detailed
information relating to the availability
of U.S.-flag vessels to perform the
required aquaculture support services. If
MARAD determines, in accordance with
46 U.S.C. 12102(d)(1) and MARAD’s
regulations at 46 CFR part 388, that
suitable U.S.-flag vessels are available to
perform the required services, a waiver
will not be granted. Comments should
refer to the docket number of this notice
and the vessel name in order for
MARAD to properly consider the
comments. Comments should also state
the commenter’s interest in the waiver
application, and address the waiver
criteria set forth in 46 CFR 388.4.
Privacy Act
In accordance with 5 U.S.C. 553(c),
MARAD solicits comments from the
public to inform its process to
determine the availability of suitable
vessels. DOT posts these comments,
without edit, to www.regulations.gov, as
described in the system of records
notice, DOT/ALL–14 FDMS, accessible
through www.dot.gov/privacy. In order
to facilitate comment tracking and
response, we encourage commenters to
provide their name, or the name of their
organization; however, submission of
names is completely optional. Whether
or not commenters identify themselves,
all timely comments will be fully
considered. If you wish to provide
comments containing proprietary or
confidential information, please contact
the agency for alternate submission
instructions.
Authority: 49 CFR 1.93(w).
*
*
*
*
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Dated: June 22, 2017
the name of their
organization; however, submission of
names is completely optional. Whether
or not commenters identify themselves,
all timely comments will be fully
considered. If you wish to provide
comments containing proprietary or
confidential information, please contact
the agency for alternate submission
instructions.
Authority: 49 CFR 1.93(w).
*
*
*
*
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Dated: June 22, 2017.
By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2017–13413 Filed 6–26–17; 8:45 am]
BILLING CODE 4910–81–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
AGENCY: Office of the Comptroller of the
Currency (OCC), Treasury; Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Joint notice and request for
comment.
SUMMARY: In accordance with the
requirements of the Paperwork
Reduction Act (PRA) of 1995, 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 a proposal to revise the
Consolidated Reports of Condition and
Income for a Bank with Domestic
Offices Only and Total Assets Less Than
$1 Billion (FFIEC 051), the Consolidated
Reports of Condition and Income for a
Bank with Domestic Offices Only
(FFIEC 041), and the Consolidated
Reports of Condition and Income for a
Bank with Domestic and Foreign Offices
(FFIEC 031), which are currently
approved collections of information
ed Reports of Condition and
Income for a Bank with Domestic
Offices Only and Total Assets Less Than
$1 Billion (FFIEC 051), the Consolidated
Reports of Condition and Income for a
Bank with Domestic Offices Only
(FFIEC 041), and the Consolidated
Reports of Condition and Income for a
Bank with Domestic and Foreign Offices
(FFIEC 031), which are currently
approved collections of information.
The Consolidated Reports of Condition
and Income are commonly referred to as
the Call Report.
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Federal Register / Vol. 82, No. 122 / Tuesday, June 27, 2017 / Notices
The proposed revisions to the FFIEC
051, FFIEC 041, and FFIEC 031 Call
Reports would result in an overall
reduction in burden. In particular, the
proposed revisions primarily relate to
the deletion or consolidation of a large
number of items, the raising of certain
reporting thresholds, and a reduction in
reporting frequency for a number of
items. The proposed revisions also
address the definition of ‘‘past due’’ for
regulatory reporting purposes as well as
changes in the accounting for equity
investments. The proposed revisions
would take effect as of the March 31,
2018, report date. At the end of the
comment period for this notice, the
comments and recommendations
received will be reviewed to determine
whether the FFIEC and the agencies
should modify the proposed revisions to
the FFIEC 051, FFIEC 041, and FFIEC
031 prior to giving final approval. As
required by the PRA, the agencies will
then publish a second Federal Register
notice for a 30-day comment period and
submit the final FFIEC 051, FFIEC 041,
and FFIEC 031 to OMB for review and
approval.
DATES: Comments must be submitted on
or before August 28, 2017.
ADDRESSES: Interested parties are
invited to submit written comments to
any or all of the agencies
iving final approval. As
required by the PRA, the agencies will
then publish a second Federal Register
notice for a 30-day comment period and
submit the final FFIEC 051, FFIEC 041,
and FFIEC 031 to OMB for review and
approval.
DATES: Comments must be submitted on
or before August 28, 2017.
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: Because paper mail in the
Washington, DC, area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by
email, if possible, to prainfo@
occ.treas.gov. Comments may be sent to:
Legislative and Regulatory Activities
Division, Office of the Comptroller of
the Currency, Attention: ‘‘1557–0081,
FFIEC 031, 041, and 051,’’ 400 7th
Street SW., Suite 3E–218, Washington,
DC 20219. In addition, comments may
be sent by fax to (571) 465–4326. You
may personally inspect and photocopy
comments at the OCC, 400 7th Street
SW., Washington, DC 20219. For
security reasons, the OCC requires that
visitors make an appointment to inspect
comments. You may do so by calling
(202) 649–6700 or, for persons who are
deaf or hard of hearing, TTY, (202) 649–
5597. Upon arrival, visitors will be
required to present valid government-
issued photo identification and submit
to security screening in order to inspect
and photocopy comments.
All comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
Board: You may submit comments,
which should refer to ‘‘FFIEC 031,
FFIEC 041, and FFIEC 051,’’ by any of
the following methods:
• Agency Web site: http://
www.federalreserve.gov
rials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
Board: You may submit comments,
which should refer to ‘‘FFIEC 031,
FFIEC 041, and FFIEC 051,’’ by any of
the following methods:
• Agency Web site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at:
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: regs.comments@
federalreserve.gov. Include the reporting
form numbers in the subject line of the
message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
All public comments are available
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 form in Room 3515, 1801 K Street
NW. (between 18th and 19th Streets
NW.), Washington, DC 20006 between
9:00 a.m. and 5:00 p.m. on weekdays.
FDIC: You may submit comments,
which should refer to ‘‘FFIEC 031,
FFIEC 041, and FFIEC 051,’’ by any of
the following methods:
• Agency Web site: https://
www.fdic.gov/regulations/laws/federal/.
Follow the instructions for submitting
comments on the FDIC’s Web site.
• Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Email: comments@FDIC.gov.
Include ‘‘FFIEC 031, FFIEC 041, and
FFIEC 051’’ in the subject line of the
message.
• Mail: Manuel E
ing methods:
• Agency Web site: https://
www.fdic.gov/regulations/laws/federal/.
Follow the instructions for submitting
comments on the FDIC’s Web site.
• Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Email: comments@FDIC.gov.
Include ‘‘FFIEC 031, FFIEC 041, and
FFIEC 051’’ in the subject line of the
message.
• Mail: Manuel E. Cabeza, Counsel,
Attn: Comments, Room MB–3007,
Federal Deposit Insurance Corporation,
550 17th Street NW., Washington, DC
20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street Building
(located on F Street) on business days
between 7:00 a.m. and 5:00 p.m.
Public Inspection: All comments
received will be posted without change
to https://www.fdic.gov/regulations/
laws/federal/ including any personal
information provided. Paper copies of
public comments may be requested from
the FDIC Public Information Center by
telephone at (877) 275–3342 or (703)
562–2200.
Additionally, commenters may send a
copy of their comments to the OMB
desk officer for the agencies by mail to
the Office of Information and Regulatory
Affairs, U.S. Office of Management and
Budget, New Executive Office Building,
Room 10235, 725 17th Street NW.,
Washington, DC 20503; by fax to (202)
395–6974; or by email to oira_
submission@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: For
further information about the proposed
revisions to the Call Report discussed in
this notice, please contact any of the
agency staff whose names appear below.
In addition, copies of the Call Report
forms can be obtained at the FFIEC’s
Web site (https://www.ffiec.gov/ffiec_
report_forms.htm).
OCC: Kevin Korzeniewski, Counsel,
a_
submission@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: For
further information about the proposed
revisions to the Call Report discussed in
this notice, please contact any of the
agency staff whose names appear below.
In addition, copies of the Call Report
forms can be obtained at the FFIEC’s
Web site (https://www.ffiec.gov/ffiec_
report_forms.htm).
OCC: Kevin Korzeniewski, Counsel,
(202) 649–5490, or for persons who are
deaf or hard of hearing, TTY, (202) 649–
5597, Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
Street SW., Washington, DC 20219.
Board: Nuha Elmaghrabi, Federal
Reserve Board Clearance Officer, (202)
452–3884, Office of the Chief Data
Officer, Board of Governors of the
Federal Reserve System, 20th and C
Streets NW., Washington, DC 20551.
Telecommunications Device for the Deaf
(TDD) users may call (202) 263–4869.
FDIC: Manuel E. Cabeza, Counsel,
(202) 898–3767, Legal Division, Federal
Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: The
agencies propose revisions to data items
reported on the FFIEC 051, FFIEC 041,
and FFIEC 031 Call Reports.
Report Title: Consolidated Reports of
Condition and Income (Call Report).
Form Numbers: FFIEC 051 (for
eligible small institutions), FFIEC 041
(for banks and savings associations with
domestic offices only), and FFIEC 031
(for banks and savings associations with
domestic and foreign offices).
Frequency of Response: Quarterly.
Affected Public: Business or other for-
profit.
OCC
OMB Control No.: 1557–0081.
Estimated Number of Respondents:
1,335 national banks and federal savings
associations.
Estimated Average Burden per
Response: 48.52 burden hours per
quarter to file.
Estimated Total Annual Burden:
259,097 burden hours to file.
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081.
Estimated Number of Respondents:
1,335 national banks and federal savings
associations.
Estimated Average Burden per
Response: 48.52 burden hours per
quarter to file.
Estimated Total Annual Burden:
259,097 burden hours to file.
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Federal Register / Vol. 82, No. 122 / Tuesday, June 27, 2017 / Notices
1 See 80 FR 56539 (September 18, 2015), 81 FR
45357 (July 13, 2016), 81 FR 54190 (August 15,
2016) (referred to hereafter as the ‘‘August 2016 Call
Report proposal’’), and 82 FR 2444 (January 9, 2017)
for further information on the actions taken under
this initiative.
2 This review is mandated by section 604 of the
Financial Services Regulatory Relief Act of 2006 (12
U.S.C. 1817(a)(11)).
3 See 81 FR 54190 (August 15, 2016) and 82 FR
2444 (January 9, 2017). A summary of the FFIEC
member entities’ uses of the data items retained in
the Call Report schedules covered in the first
portion of the user surveys was included in
Appendix A of the latter notice.
Board
OMB Control No.: 7100–0036.
Estimated Number of Respondents:
830 state member banks.
Estimated Average Burden per
Response: 53.11 burden hours per
quarter to file.
Estimated Total Annual Burden:
176,325 burden hours to file.
FDIC
OMB Control No.: 3064–0052.
Estimated Number of Respondents:
3,743 insured state nonmember banks
and state savings associations.
Estimated Average Burden per
Response: 46.66 burden hours per
quarter to file.
Estimated Total Annual Burden:
698,594 burden hours to file
er
Response: 53.11 burden hours per
quarter to file.
Estimated Total Annual Burden:
176,325 burden hours to file.
FDIC
OMB Control No.: 3064–0052.
Estimated Number of Respondents:
3,743 insured state nonmember banks
and state savings associations.
Estimated Average Burden per
Response: 46.66 burden hours per
quarter to file.
Estimated Total Annual Burden:
698,594 burden hours to file.
The proposed burden-reducing
revisions are the result of an ongoing
effort by the agencies to reduce the
burden associated with the preparation
and filing of Call Reports and, as
detailed in Appendices B, C, and D,
achieve burden reductions by the
removal or consolidation of numerous
items, the raising of certain reporting
thresholds, and a reduction in reporting
frequency for certain items. The
proposed revision to the definition of
‘‘past due’’ for regulatory reporting
purposes would promote the use of
consistent standards in the industry.
The proposed revisions to the reporting
of equity investments are consistent
with changes in the accounting
standards applicable to such
investments.
The estimated average burden hours,
which reflect an overall reduction,
collectively reflect the estimates for the
FFIEC 051, the FFIEC 041, and the
FFIEC 031 reports. When the estimates
are calculated by type of report across
the agencies, the estimated average
burden hours per quarter are 39.47
(FFIEC 051), 58.37 (FFIEC 041), and
123.25 (FFIEC 031). The estimated
burden per response for the quarterly
filings of the Call Report is an average
that varies by agency because of
differences in the composition of the
institutions under each agency’s
supervision (e.g., size distribution of
institutions, types of activities in which
they are engaged, and existence of
foreign offices).
Type of Review: Revision of currently
approved collections.
General Description of Reports
These information collections are
mandatory: 12 U.S.C. 161 (for national
banks), 12 U.S.C
differences in the composition of the
institutions under each agency’s
supervision (e.g., size distribution of
institutions, types of activities in which
they are engaged, and existence of
foreign offices).
Type of Review: Revision of currently
approved collections.
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), 12 U.S.C. 1817 (for insured state
nonmember commercial and savings
banks), and 12 U.S.C. 1464 (for federal
and state savings associations). At
present, except for selected data items
and text, these information collections
are not given confidential treatment.
Abstract
Institutions submit Call Report data to
the agencies each quarter for the
agencies’ use in monitoring the
condition, performance, and risk profile
of individual institutions and the
industry as a whole. Call Report data
serve a regulatory or public policy
purpose by assisting the agencies in
fulfilling their missions of ensuring the
safety and soundness of financial
institutions and the financial system
and the protection of consumer
financial rights, as well as agency-
specific missions affecting national and
state-chartered institutions, e.g.,
monetary policy, financial stability, and
deposit insurance. Call Reports are the
source of the most current statistical
data available for identifying areas of
focus for on-site and off-site
examinations. The agencies use Call
Report data in evaluating institutions’
corporate applications, including, in
particular, interstate merger and
acquisition applications for which, as
required by law, the agencies must
determine whether the resulting
institution would control more than 10
percent of the total amount of deposits
of insured depository institutions in the
United States
examinations. The agencies use Call
Report data in evaluating institutions’
corporate applications, including, in
particular, interstate merger and
acquisition applications for which, as
required by law, the agencies must
determine whether the resulting
institution would control more than 10
percent of the total amount of deposits
of insured depository institutions in the
United States. Call Report data also are
used to calculate institutions’ deposit
insurance and Financing Corporation
assessments and national banks’ and
federal savings associations’ semiannual
assessment fees.
Current Actions
I. Introduction
As part of an initiative launched by
the FFIEC in December 2014 to identify
potential opportunities to reduce
burden associated with Call Report
requirements for community banks, the
FFIEC and the agencies have taken
several actions, including: (1) The
finalization in mid-2016 of a number of
burden-reducing changes and other
revisions to the Call Report that were
implemented in September 2016 and
March 2017; (2) outreach to institutions
to obtain a better understanding of
significant sources of reporting burden
in their Call Report preparation
processes; and (3) the creation of a new
streamlined FFIEC 051 Call Report for
eligible small institutions that took
effect as of the March 31, 2017, report
date.1
As another key part of the FFIEC’s
community bank burden-reduction
initiative, in 2015 the agencies
accelerated the start of the next
statutorily mandated review of the
existing Call Report data items (Full
Review),2 which otherwise would have
commenced in 2017. Users of Call
Report data items, who are internal staff
at the FFIEC member entities,
participated in a series of nine surveys
conducted over a 19-month period that
began in mid-July 2015 and ended in
mid-February 2017
gencies
accelerated the start of the next
statutorily mandated review of the
existing Call Report data items (Full
Review),2 which otherwise would have
commenced in 2017. Users of Call
Report data items, who are internal staff
at the FFIEC member entities,
participated in a series of nine surveys
conducted over a 19-month period that
began in mid-July 2015 and ended in
mid-February 2017. As an integral part
of these surveys, users were asked to
fully explain the need for each Call
Report data item they deem essential,
how the data item is used, the frequency
with which it is needed, and the
population of institutions from which it
is needed. Call Report schedules were
placed into nine groups and prioritized
for review, generally based on the level
of burden cited by banking industry
representatives. Based on the results of
the user surveys, the agencies are in the
process of identifying data items to be
considered for removal, less frequent
collection, and new or revised reporting
thresholds to reduce burden.
Based on the results of a portion of
the user surveys, the agencies propose
various burden-reducing changes in this
proposal. A summary of the FFIEC
member entities’ uses of the data items
retained in the Call Report schedules
covered in this portion of the user
surveys is included in Appendix A. The
results of the agencies’ initial reviews of
the first portion of the user surveys were
included in the agencies’ August 2016
Call Report proposal for a new
streamlined FFIEC 051 Call Report for
eligible small institutions and burden-
reducing revisions to the existing FFIEC
041 and FFIEC 031 versions of the Call
Report, which was finalized in
December 2016.3 The agencies are
analyzing the results of the final portion
of the user surveys to determine any
future proposed revisions to the FFIEC
051, FFIEC 041, and FFIEC 031
proposal for a new
streamlined FFIEC 051 Call Report for
eligible small institutions and burden-
reducing revisions to the existing FFIEC
041 and FFIEC 031 versions of the Call
Report, which was finalized in
December 2016.3 The agencies are
analyzing the results of the final portion
of the user surveys to determine any
future proposed revisions to the FFIEC
051, FFIEC 041, and FFIEC 031. Burden-
reducing reporting changes from this
last group of surveys will be proposed
in a future Federal Register notice with
an anticipated March 31, 2018,
implementation date. The schedules
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4 See the Joint Report to Congress, Economic
Growth and Regulatory Paperwork Reduction Act,
March 2017, https://www.ffiec.gov/pdf/2017_
FFIEC_EGRPRA_Joint-Report_to_Congress.pdf.
reviewed in this last group primarily
include schedules that collect data on
complex or specialized activities,
several of which were removed and
replaced by indicator questions and a
limited number of indicator items when
the new FFIEC 051 was created.
Therefore, revisions proposed in this
future notice may be likely to more
significantly affect schedules and data
items in the FFIEC 041 and FFIEC 031.
In addition, as a framework for the
actions it is undertaking, the FFIEC
developed a set of guiding principles for
use in evaluating potential additions
and deletions of Call Report data items
and other revisions to the Call Report
eated.
Therefore, revisions proposed in this
future notice may be likely to more
significantly affect schedules and data
items in the FFIEC 041 and FFIEC 031.
In addition, as a framework for the
actions it is undertaking, the FFIEC
developed a set of guiding principles for
use in evaluating potential additions
and deletions of Call Report data items
and other revisions to the Call Report.
In general, data items collected in the
Call Report must meet three guiding
principles: (1) The data items serve a
long-term regulatory or public policy
purpose by assisting the FFIEC member
entities in fulfilling their missions of
ensuring the safety and soundness of
financial institutions and the financial
system and the protection of consumer
financial rights, as well as agency-
specific missions affecting national and
state-chartered institutions; (2) the data
items to be collected maximize practical
utility and minimize, to the extent
practicable and appropriate, burden on
financial institutions; and (3) equivalent
data items are not readily available
through other means.
II. General Discussion of Proposed Call
Report Revisions
As discussed above, the Call Report
schedules are being reviewed as part of
the Full Review, conducted through a
series of nine user surveys. The results
of a portion of the surveys were
evaluated in the development of this
proposal. In addition, the results of
certain surveys were re-evaluated and
further burden-reducing changes were
incorporated into this proposal
all
Report Revisions
As discussed above, the Call Report
schedules are being reviewed as part of
the Full Review, conducted through a
series of nine user surveys. The results
of a portion of the surveys were
evaluated in the development of this
proposal. In addition, the results of
certain surveys were re-evaluated and
further burden-reducing changes were
incorporated into this proposal. In
conjunction with these evaluations, the
agencies also considered comments
received on their August 2016 Call
Report proposal, feedback and
streamlining suggestions received
during their banker outreach activities
as part of the community bank Call
Report burden-reduction initiative, and
comments regarding the Call Report
received during the Economic Growth
and Regulatory Paperwork Reduction
Act review conducted by the FFIEC and
the agencies 4 (hereafter collectively
referred to as ‘‘industry comments and
feedback’’). The proposed revisions to
the FFIEC 051, FFIEC 041, and FFIEC
031, which are based on these analyses
of the survey responses and
consideration of industry comments and
feedback, are discussed in Sections
III.A, III.B, and III.C, respectively.
The schedules reviewed in the
portion of the user surveys evaluated in
the development of this proposal
include:
• Schedule RI–D—Income from Foreign
Offices [FFIEC 031 only]
• Schedule RI–E—Explanations
• Schedule RC–B—Securities
• Schedule RC–D—Trading Assets and
Liabilities [FFIEC 031 and FFIEC 041
only]
• Schedule RC–K—Quarterly Averages
• Schedule RC–L—Derivatives and Off-
Balance-Sheet Items
• Schedule RC–M—Memoranda
The schedules re-evaluated in the
development of this proposal include:
• Schedule RI—Income Statement
• Schedule RC—Balance Sheet
• Schedule RC–C, Part I—Loans and
Leases
• Schedule RC–N—Past Due and
Nonaccrual Loans, Leases, and Other
Assets
Table 1 summarizes the changes
already finalized as part of the FFIEC’s
community bank Call Report burden-
reduction initiative
RC–M—Memoranda
The schedules re-evaluated in the
development of this proposal include:
• Schedule RI—Income Statement
• Schedule RC—Balance Sheet
• Schedule RC–C, Part I—Loans and
Leases
• Schedule RC–N—Past Due and
Nonaccrual Loans, Leases, and Other
Assets
Table 1 summarizes the changes
already finalized as part of the FFIEC’s
community bank Call Report burden-
reduction initiative.
TABLE 1—DATA ITEMS REVISED AS OF MARCH 31, 2017
Finalized call report revisions
051
041
031
Items Removed, Net * ..................................................................................................................
967
60
68
Change in Item Frequency to Semiannual ..................................................................................
96
........................
........................
Change in Item Frequency to Annual .........................................................................................
10
........................
........................
Items with a New or Increased Reporting Threshold ..................................................................
........................
7
13
* ‘‘Items Removed, Net’’ reflects the effects of consolidating existing items, adding control totals, and, for the FFIEC 051, relocating individual
items from other schedules to Schedule SU, some of which were consolidated in Schedule SU. In addition, included in this number for the FFIEC
051, approximately 300 items were items that institutions with less than $1 billion in total assets were exempt from reporting due to existing re-
porting thresholds in the FFIEC 041.
Table 2 summarizes the additional
burden-reducing proposed revisions to
data items included in this notice. The
proposed revisions are discussed in
Section III. Detail for each affected data
item is shown in Appendix B (FFIEC
051), Appendix C (FFIEC 041), and
Appendix D (FFIEC 031)
1 billion in total assets were exempt from reporting due to existing re-
porting thresholds in the FFIEC 041.
Table 2 summarizes the additional
burden-reducing proposed revisions to
data items included in this notice. The
proposed revisions are discussed in
Section III. Detail for each affected data
item is shown in Appendix B (FFIEC
051), Appendix C (FFIEC 041), and
Appendix D (FFIEC 031).
TABLE 2—PROPOSED DATA REVISIONS IN THIS NOTICE
Proposed call report revisions
051
041
031
Items Proposed to be Removed, Net * ........................................................................................
54
106
86
Proposed Change in Item Frequency to Semiannual .................................................................
17
31
31
Proposed Change in Item Frequency to Annual .........................................................................
26
3
3
Items with a Proposed New or Increased Reporting Threshold .................................................
26
106
178
*‘‘Items Proposed to be Removed, Net’’ reflects the effects of consolidating existing items and relocating individual items to other schedules.
The agencies are also proposing two
revisions not related to the burden-
reduction initiative. The first proposal
would revise a method currently
described in the Call Report instructions
for determining past-due status for
purposes of reporting certain loans and
leases as past due in Schedule RC–N.
The second proposal would revise
portions of several Call Report
schedules to incorporate the revised
accounting for equity securities under
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t-due status for
purposes of reporting certain loans and
leases as past due in Schedule RC–N.
The second proposal would revise
portions of several Call Report
schedules to incorporate the revised
accounting for equity securities under
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5 After these two preprinted captions have been
removed, if an institution has an other noninterest
income component currently disclosed in item 1.f
or 1.h in an amount in excess of the reporting
threshold, it would itemize and describe this
component in one of the subitems of item 1 without
a preprinted caption.
6 The agencies increased the dollar portion of this
reporting threshold from $25,000 to $100,000
effective September 30, 2016.
7 See 82 FR 2444 (January 9, 2017) for discussion
of the comments received on the August 2016 Call
Report proposal.
8 Id.
Accounting Standards Update (ASU)
No. 2016–01, ‘‘Recognition and
Measurement of Financial Assets and
Financial Liabilities.’’ Both of these
proposals are discussed in Section III.D.
The proposed Call Report revisions
would take effect March 31, 2018.
Additional information on timing of the
proposed revisions is provided in
Section IV.
III. Detail of Specific Proposed Call
Report Revisions
A
nting Standards Update (ASU)
No. 2016–01, ‘‘Recognition and
Measurement of Financial Assets and
Financial Liabilities.’’ Both of these
proposals are discussed in Section III.D.
The proposed Call Report revisions
would take effect March 31, 2018.
Additional information on timing of the
proposed revisions is provided in
Section IV.
III. Detail of Specific Proposed Call
Report Revisions
A. Revisions to the FFIEC 051
Schedule RI
For the FFIEC 051, the agencies
propose to consolidate securities
brokerage and investment banking
income items 5.d.(1) and 5.d.(2) into
revised item 5.d.(1), consolidate
insurance activities income items 5.d.(3)
through 5.d.(5) into revised item 5.d.(2),
remove securitization income item 5.g,
and remove non-deductible interest
expense Memorandum item 1 as the
agencies no longer need the current
level of detail provided by each of these
existing items from smaller institutions
eligible to file this version of the Call
Report. Securitization income would be
included within other noninterest
income in item 5.l.
Schedule RI–B
For the FFIEC 051, the agencies
propose to remove Schedule RI–B, Part
II, Memorandum item 4 on allowances
for credit losses on purchased credit-
impaired loans, as the agencies no
longer need this item from smaller
institutions eligible to file this version
of the Call Report.
Schedule RI–E
For the FFIEC 051, the agencies
propose to remove the preprinted
captions for items 1.f and 1.h, as few
institutions report having these
components of other noninterest income
in amounts in excess of the existing
reporting threshold for disclosing these
components.5 The remaining items 1.g
and 1.i through 1.l would be
renumbered as items 1.f through 1.j
of the Call Report.
Schedule RI–E
For the FFIEC 051, the agencies
propose to remove the preprinted
captions for items 1.f and 1.h, as few
institutions report having these
components of other noninterest income
in amounts in excess of the existing
reporting threshold for disclosing these
components.5 The remaining items 1.g
and 1.i through 1.l would be
renumbered as items 1.f through 1.j.
In addition, after reviewing the
agencies’ data needs along with industry
comments and feedback requesting a
higher threshold for disclosing
components of other noninterest income
and other noninterest expense in
Schedule RI–E, the agencies propose to
increase the percentage portion of the
existing threshold for reporting other
noninterest income components in
items 1.a through 1.j and other
noninterest expense components in
items 2.a through 2.p. The proposed
threshold for disclosing components of
other noninterest income and other
noninterest expense would be amounts
greater than $100,000 that exceed seven
percent of Schedule RI, item 5.l and
item 7.d, respectively.6 This percentage
is currently three percent. The agencies
considered alternative percentage
thresholds of five percent and ten
percent. Upon evaluating the impact of
each percentage threshold, the agencies
determined that a percentage threshold
of seven percent would provide a
meaningful reduction in reporting
burden without a loss of data that would
be necessary for supervisory or other
public policy purposes.
The agencies further propose to
reduce the frequency of collection for
items 1.a through 1.j and 2.a through 2.p
from quarterly to annually as of
December 31. This proposal is based on
a comment received on the agencies’
August 2016 Call Report proposal
recommending a reduction in the
reporting frequency of these items for
smaller institutions.7 The agencies
believe the new reporting frequency
better balances the agencies’ supervisory
needs with institutions’ reporting
burden
j and 2.a through 2.p
from quarterly to annually as of
December 31. This proposal is based on
a comment received on the agencies’
August 2016 Call Report proposal
recommending a reduction in the
reporting frequency of these items for
smaller institutions.7 The agencies
believe the new reporting frequency
better balances the agencies’ supervisory
needs with institutions’ reporting
burden.
Schedule RC
For the FFIEC 051, the agencies
propose to move the reporting of
goodwill from existing item 10.a on the
balance sheet to Schedule RC–M, item
2.b, and combine existing items 10.a
and 10.b on Schedule RC into a single
item 10. This would consolidate the
reporting of goodwill and other
intangible assets on Schedule RC into a
single balance sheet item for intangible
assets. This proposed revision to
Schedule RC was requested by a
commenter on the agencies’ August
2016 Call Report proposal to facilitate
institutions’ reporting by making their
Call Report processes more efficient and
better focused.8 While the agencies
believe the reporting and disclosure of
the amount of an institution’s goodwill
is important, the agencies are indifferent
as to the location of the goodwill
information in the Call Report.
Schedule RC–B
For the FFIEC 051, the agencies
propose to consolidate the reporting of
an institution’s holdings of U.S.
government agency obligations, which
are currently reported in items 2.a and
2.b, into a single item 2, and to
consolidate the reporting of structured
financial product holdings, which are
currently reported in items 5.b.(1)
through 5.b.(3), into a single item 5.b, as
the agencies no longer need the current
level of detail for these holdings in the
Call Report. Banks would still be
required to report amortized cost and
fair value information in columns A
through D for the proposed items 2 and
5.b
consolidate the reporting of structured
financial product holdings, which are
currently reported in items 5.b.(1)
through 5.b.(3), into a single item 5.b, as
the agencies no longer need the current
level of detail for these holdings in the
Call Report. Banks would still be
required to report amortized cost and
fair value information in columns A
through D for the proposed items 2 and
5.b. The agencies also propose to reduce
the reporting frequency of the data on
sales and transfers of held-to-maturity
securities reported in Memorandum
item 3 from quarterly to semiannual
(June 30 and December 31), as the
agencies no longer need these data items
as frequently. This proposal is
consistent with industry comments and
feedback recommending a shorter
reporting form for two of the four
quarters each year. The agencies also
propose to remove Memorandum items
6.a through 6.g, which provide detail on
holding of structured financial products,
as smaller institutions eligible to file
this version of the Call Report generally
do not hold these securities.
Schedule RC–C, Part I
For the FFIEC 051, the agencies
propose to reduce the reporting
frequency of Memorandum items 7.a,
7.b, 8.a, and 12 (Columns A through C)
from quarterly to semiannual (June 30
and December 31), as the agencies no
longer need these loan data in the Call
Report as frequently. This proposal is
consistent with industry comments and
feedback recommending a shorter
reporting form for two of the four
quarters each year.
Schedule RC–K
For the FFIEC 051, the agencies
propose to remove item 7, average
trading assets, as the agencies no longer
need this quarterly average in the Call
Report from institutions with domestic
offices only and assets less than $1
billion
This proposal is
consistent with industry comments and
feedback recommending a shorter
reporting form for two of the four
quarters each year.
Schedule RC–K
For the FFIEC 051, the agencies
propose to remove item 7, average
trading assets, as the agencies no longer
need this quarterly average in the Call
Report from institutions with domestic
offices only and assets less than $1
billion.
Schedule RC–L
For the FFIEC 051, the agencies
propose to remove items 1.b.(1), 1.b.(2),
and 1.d, as the agencies no longer need
the current level of detail for these types
of unused commitments from smaller
institutions eligible to file this version
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9 Any securities underwriting commitments
currently reported in item 1.d would be included
as part of all other unused commitments in item
1.e.(3).
10 As explained in the description of the proposed
revisions to Schedule RC of the FFIEC 051, existing
item 2.b of Schedule RC–M would be replaced by
a revised item 2.b for reporting goodwill.
11 If an institution has the component of other
noninterest income currently disclosed in item 1.f
or 1.h in an amount in excess of the reporting
threshold, it would itemize and describe this
component in one of the subitems of item 1 without
a preprinted caption.
12 The agencies increased the dollar portion of
this reporting threshold from $25,000 to $100,000
effective September 30, 2016.
13 See 82 FR 2444 (January 9, 2017) for discussion
of the comments received on the August 2016 Call
Report proposal
t in excess of the reporting
threshold, it would itemize and describe this
component in one of the subitems of item 1 without
a preprinted caption.
12 The agencies increased the dollar portion of
this reporting threshold from $25,000 to $100,000
effective September 30, 2016.
13 See 82 FR 2444 (January 9, 2017) for discussion
of the comments received on the August 2016 Call
Report proposal.
of the Call Report.9 The agencies also
propose to reduce the reporting
frequency of merchant credit card sales
data in items 11.a and 11.b from
quarterly to semiannual (June 30 and
December 31), as the agencies no longer
need this information in the Call Report
as frequently. This proposal is
consistent with industry comments and
feedback recommending a shorter
reporting form for smaller institutions
for two of the four quarters each year.
Schedule RC–M
For the FFIEC 051, the agencies
propose to consolidate current items 2.b
and 2.c, which provide data on certain
identifiable intangible assets, into a
single item 2.c,10 and to consolidate
other real estate owned items 3.c and 3.f
into a single item 3.c, as the agencies no
longer need the current level of detail in
the Call Report that is provided in these
separate items. As discussed earlier
under Schedule RC, the agencies are
moving the goodwill amount formerly
reported in Schedule RC, item 10.a, to
a recaptioned item 2.b on Schedule RC–
M.
Schedule RC–N
For the FFIEC 051, the agencies
propose to reduce the reporting
frequency of Memorandum items 7 and
8 on nonaccrual assets and
Memorandum items 9.a and 9.b on
purchased credit-impaired loans from
quarterly to semiannual (June 30 and
December 31), as the agencies no longer
need these data in the Call Report as
frequently. In connection with this
proposed change, Memorandum items 7
and 8 would collect data on additions
to nonaccrual assets and nonaccrual
asset sales, respectively, during the
preceding six months rather than the
preceding quarter as at present
it-impaired loans from
quarterly to semiannual (June 30 and
December 31), as the agencies no longer
need these data in the Call Report as
frequently. In connection with this
proposed change, Memorandum items 7
and 8 would collect data on additions
to nonaccrual assets and nonaccrual
asset sales, respectively, during the
preceding six months rather than the
preceding quarter as at present. This
proposal is consistent with industry
comments and feedback recommending
a shorter reporting form for two of the
four quarters each year.
B. Revisions to the FFIEC 041
Scope Revision
The agencies propose to revise the
scope of the FFIEC 041 to require all
institutions with consolidated total
assets of $100 billion or more to file the
FFIEC 031 instead, regardless of
whether an institution has any foreign
offices. The agencies are proposing this
change because institutions with
consolidated total assets of $100 billion
or more without foreign offices are
considered to have a similar degree of
complexity in their activities as
institutions with consolidated total
assets of $100 billion or more and
foreign offices that currently file the
FFIEC 031. This scope revision would
affect a small number of institutions.
Also, modifying the scope of these two
versions of the Call Report in this
manner would enable the agencies to
remove a number of data items from the
FFIEC 041 report that they no longer
need to collect from institutions with
consolidated total assets less than $100
billion.
Schedule RI
For the FFIEC 041, the agencies
propose to remove detail on trading
revenues in Memorandum items 8.a
through 8.e, as the agencies no longer
need this level of detail in the Call
Report from institutions with total
assets less than $100 billion. The
agencies would also remove
Memorandum items 8.f through 8.h,
which currently only apply to
institutions with total assets of $100
billion or more
he FFIEC 041, the agencies
propose to remove detail on trading
revenues in Memorandum items 8.a
through 8.e, as the agencies no longer
need this level of detail in the Call
Report from institutions with total
assets less than $100 billion. The
agencies would also remove
Memorandum items 8.f through 8.h,
which currently only apply to
institutions with total assets of $100
billion or more. In addition, the
agencies propose to reduce the reporting
frequency of Memorandum item 12 from
quarterly to semiannual (June 30 and
December 31), as the agencies no longer
need this data in the Call Report as
frequently.
Schedule RI–E
For the FFIEC 041, the agencies
propose to remove the preprinted
captions for items 1.f and 1.h, as few
institutions report having these
components of other noninterest income
in amounts in excess of the existing
reporting threshold for disclosing these
components.11 The remaining items 1.g
and1.i through 1.l would be renumbered
as items 1.f through 1.j.
In addition, after reviewing the
agencies’ data needs along with industry
comments and feedback requesting a
higher threshold for disclosing
components of other noninterest income
and other noninterest expense in
Schedule RI–E, the agencies propose to
increase the percentage portion of the
existing threshold for reporting other
noninterest income components in
items 1.a through 1.j and other
noninterest expense components in
items 2.a through 2.p. The proposed
threshold for disclosing components of
other noninterest income and other
noninterest expense would be amounts
greater than $100,000 that exceed seven
percent of Schedule RI, item 5.l and
item 7.d, respectively.12 This percentage
is currently three percent. The agencies
considered alternative percentage
thresholds of five percent and ten
percent
ts in
items 2.a through 2.p. The proposed
threshold for disclosing components of
other noninterest income and other
noninterest expense would be amounts
greater than $100,000 that exceed seven
percent of Schedule RI, item 5.l and
item 7.d, respectively.12 This percentage
is currently three percent. The agencies
considered alternative percentage
thresholds of five percent and ten
percent. Upon evaluating the impact of
each percentage threshold, the agencies
determined that a percentage threshold
of seven percent would provide a
meaningful reduction in reporting
burden without a loss of data that would
be necessary for supervisory or other
public policy purposes.
Schedule RC
For the FFIEC 041, the agencies
propose to move the reporting of
goodwill from existing item 10.a on the
balance sheet to Schedule RC–M, item
2.b, and combine existing items 10.a
and 10.b on Schedule RC into a single
item 10. This would consolidate the
reporting of goodwill and other
intangible assets on Schedule RC into a
single balance sheet item for intangible
assets. This proposed revision to
Schedule RC was requested by a
commenter on the agencies’ August
2016 Call Report proposal to facilitate
institutions’ reporting by making their
Call Report processes more efficient and
better focused.13 While the agencies
believe the reporting and disclosure of
the amount of an institution’s goodwill
detail is important, the agencies are
indifferent as to the location of the
information in the Call Report.
Schedule RC–B
For the FFIEC 041, the agencies
propose to consolidate the reporting of
an institution’s holdings of U.S.
government agency obligations, which
are currently reported in items 2.a and
2.b, into a single item 2, and to
consolidate the reporting of structured
financial product holdings, which are
currently reported in items 5.b.(1)
through 5.b.(3), into a single item 5.b, as
the agencies no longer need the current
level of detail for these holdings in the
Call Report
titution’s holdings of U.S.
government agency obligations, which
are currently reported in items 2.a and
2.b, into a single item 2, and to
consolidate the reporting of structured
financial product holdings, which are
currently reported in items 5.b.(1)
through 5.b.(3), into a single item 5.b, as
the agencies no longer need the current
level of detail for these holdings in the
Call Report. Institutions would still be
required to report amortized cost and
fair value information in columns A
through D for the proposed items 2 and
5.b. The agencies also propose to reduce
the reporting frequency of the data on
sales and transfers of held-to-maturity
securities reported in Memorandum
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14 See 82 FR 2444 (January 9, 2017).
15 As explained in the description of the proposed
revisions to Schedule RC of the FFIEC 041, existing
item 2.b of Schedule RC–M would be replaced by
a revised item 2.b for reporting goodwill.
item 3 from quarterly to semiannual
(June 30 and December 31), as the
agencies no longer need these data items
in the Call Report as frequently. This
proposal is consistent with industry
comments and feedback recommending
a shorter reporting form for two of the
four quarters each year.14 The agencies
also propose to add a reporting
threshold of $10 billion or more in total
assets before institutions must complete
Memorandum items 5.a though 6.g,
columns A through D, as the agencies
no longer need this information in the
Call Report from institutions under this
proposed threshold
and feedback recommending
a shorter reporting form for two of the
four quarters each year.14 The agencies
also propose to add a reporting
threshold of $10 billion or more in total
assets before institutions must complete
Memorandum items 5.a though 6.g,
columns A through D, as the agencies
no longer need this information in the
Call Report from institutions under this
proposed threshold.
Schedule RC–C, Part I
For the FFIEC 041, the agencies
propose to reduce the reporting
frequency of Memorandum items 7.a,
7.b, 8.a, 8.b, 8.c, and 12.a through 12.d
(columns A through C) from quarterly to
semiannual (June 30 and December 31),
as the agencies no longer need these
loan data in the Call Report as
frequently. This proposal is consistent
with industry comments and feedback
recommending a shorter reporting form
for two of the four quarters each year.
Schedule RC–D
For the FFIEC 041, the agencies
propose to change the reporting
threshold for the overall schedule so
that the schedule would be applicable to
institutions with total trading assets of
$10 million or more in any of the four
preceding calendar quarters from the
current threshold of $2 million in
average trading assets over this same
period. In addition, all institutions
meeting the FDIC’s definition of a large
institution or a highly complex
institution for deposit insurance
assessment purposes would be required
to complete Schedule RC–D. The
agencies are proposing this reporting
threshold change because they no longer
need to collect this detailed data in the
Call Report from institutions with a
lesser amount of trading assets that are
not large or highly complex institutions
ition of a large
institution or a highly complex
institution for deposit insurance
assessment purposes would be required
to complete Schedule RC–D. The
agencies are proposing this reporting
threshold change because they no longer
need to collect this detailed data in the
Call Report from institutions with a
lesser amount of trading assets that are
not large or highly complex institutions.
The agencies also propose to
consolidate:
• Structured financial products in
current items 5.a.(1) through 5.a.(3) into
a single new item 5.a;
• Loan detail in current items 6.a.(1),
6.a.(2), 6.a.(4), and 6.a.(5) into a single
new item 6.a.(2);
• Certain residential loan detail in
current items 6.a.(3)(a) through
6.a.(3)(b)(2) into a single new item
6.a.(1);
• Consumer loan information in items
6.c.(1) through 6.c.(4) into a single item
6.c;
• Loan detail in current
Memorandum items 1.a.(1), 1.a.(2),
1.a.(4), and 1.a.(5) into a single new
Memorandum item 1.a.(2);
• Certain residential loan detail in
current Memorandum items 1.a.(3)(a)
through 1.a.(3)(b)(2) into a single new
Memorandum item 1.a.(1); and
• Consumer loan information in
Memoranda items 1.c.(1) through 1.c.(4)
into a single new Memorandum item
1.c.
The agencies no longer need to collect
the existing level of detail in the Call
Report from those institutions that
would be required to complete Schedule
RC–D under its proposed revised
reporting threshold. The agencies also
propose to remove Memorandum items
2.a though 10, as the agencies no longer
need to collect the current level of detail
in the Call Report from institutions with
less than $100 billion in total assets.
Schedule RC–K
For the FFIEC 041, the agencies
propose to revise the reporting
threshold for item 7 on average trading
assets
er its proposed revised
reporting threshold. The agencies also
propose to remove Memorandum items
2.a though 10, as the agencies no longer
need to collect the current level of detail
in the Call Report from institutions with
less than $100 billion in total assets.
Schedule RC–K
For the FFIEC 041, the agencies
propose to revise the reporting
threshold for item 7 on average trading
assets. This item would only need to be
completed by institutions with $10
million or more in total trading assets in
any of the four preceding calendar
quarters and by all institutions meeting
the FDIC’s definition of a ‘‘large
institution’’ or a ‘‘highly complex
institution’’ for deposit insurance
assessment purposes. This proposed
revised reporting threshold is consistent
with the proposed threshold for
completing Schedule RC–D discussed
above. The agencies no longer need this
quarterly average in the Call Report
from institutions with less than $10
million in trading assets that are not
large or highly complex institutions.
Schedule RC–L
For the FFIEC 041, the agencies
propose to consolidate items 1.a.(1) and
1.a.(2) into a single item 1.a.(1), as the
agencies no longer need the current
level of detail in the Call Report for
these types of unused commitments.
The agencies also propose to remove
item 8 on spot foreign exchange
contracts, as the agencies no longer need
this information in the Call Report from
all institutions with assets less than
$100 billion. By removing item 8, spot
foreign exchange contracts would be
reported as part of an institution’s all
other off-balance sheet liabilities in item
9 of Schedule RC–L if the amount of
such contracts exceeds 10 percent of the
institution’s total equity capital. Spot
foreign exchange contracts would be
disclosed as a component of the
institution’s all other off-balance sheet
liabilities if the amount exceeds 25
percent of total equity capital
would be
reported as part of an institution’s all
other off-balance sheet liabilities in item
9 of Schedule RC–L if the amount of
such contracts exceeds 10 percent of the
institution’s total equity capital. Spot
foreign exchange contracts would be
disclosed as a component of the
institution’s all other off-balance sheet
liabilities if the amount exceeds 25
percent of total equity capital.
The agencies also propose to remove
columns B, C, and D, for items 16.a
through 16.b.(8), and instead include
these data on over-the-counter
derivatives within column E for
derivatives with all other
counterparties. The agencies no longer
need the separate detail in the Call
Report provided by the disaggregated
data on over-the-counter derivatives for
monoline financial guarantors, hedge
funds, and sovereign governments for
institutions filing the FFIEC 041. The
agencies also propose removing items
16.b.(4) though 16.b.(6) for the
remaining columns A and E, and
instead including the fair value of the
three types of securities collateral
currently reported in items 16.b.(4)
through 16.b.(6) within the collateral
amount reported in the respective
columns of item 16.b.(7). The agencies
no longer need the separate breakout of
these types of collateral in the Call
Report for institutions filing the FFIEC
041.
The agencies also propose to reduce
the reporting frequency of items 1.b.(1),
1.b.(2), 11.a, and 11.b from quarterly to
semiannual (June 30 and December 31),
as the agencies no longer need these
data in the Call Report as frequently.
This proposal is consistent with
industry comments and feedback
recommending a shorter reporting form
for two of the four quarters each year
the FFIEC
041.
The agencies also propose to reduce
the reporting frequency of items 1.b.(1),
1.b.(2), 11.a, and 11.b from quarterly to
semiannual (June 30 and December 31),
as the agencies no longer need these
data in the Call Report as frequently.
This proposal is consistent with
industry comments and feedback
recommending a shorter reporting form
for two of the four quarters each year.
Schedule RC–M
For the FFIEC 041, the agencies
propose to consolidate items 2.b and
2.c, which provide data on certain
identifiable intangible assets, into a
single item 2.c,15 and to consolidate
other real estate owned items 3.c and 3.f
into a single item 3.c, as the agencies no
longer need the current level of detail in
the Call Report that is provided in these
separate items. As discussed earlier
under Schedule RC, the agencies are
moving the goodwill amount formerly
reported in Schedule RC, item 10.a, to
a recaptioned item 2.b on Schedule RC–
M. The agencies also propose to reduce
the reporting frequency for items 9 (Web
site transactional capability), 14.a
(captive insurance subsidiary assets),
and 14.b (captive reinsurance subsidiary
assets) from quarterly to annual
(December 31), as the agencies no longer
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16 If an institution has the component of other
noninterest income currently disclosed in item 1.f
or 1.h in an amount in excess of the reporting
threshold, it would itemize and describe this
component in one of the subitems of item 1 without
a preprinted caption.
17 The agencies increased the dollar portion of
this reporting threshold from $25,000 to $100,000
effective September 30, 2016.
18 See 82 FR 2444 (January 9, 2017) for discussion
of the comments received on the August 2016 Call
Report proposal
t in excess of the reporting
threshold, it would itemize and describe this
component in one of the subitems of item 1 without
a preprinted caption.
17 The agencies increased the dollar portion of
this reporting threshold from $25,000 to $100,000
effective September 30, 2016.
18 See 82 FR 2444 (January 9, 2017) for discussion
of the comments received on the August 2016 Call
Report proposal.
need these data in the Call Report as
frequently.
Schedule RC–N
For the FFIEC 041, the agencies
propose to reduce the reporting
frequency of Memorandum items 7 and
8 on nonaccrual assets and
Memorandum items 9.a and 9.b
(columns A through C) on purchased
credit-impaired loans from quarterly to
semiannual (June 30 and December 31),
as the agencies no longer need these
data in the Call Report as frequently. In
connection with this proposed change,
Memorandum items 7 and 8 would
collect data on additions to nonaccrual
assets and nonaccrual asset sales,
respectively, during the preceding six
months rather than the preceding
quarter as at present. This proposal is
consistent with industry comments and
feedback recommending a shorter
reporting form for two of the four
quarters each year.
C. Revisions to the FFIEC 031
Scope Revision
The agencies propose to revise the
scope of the FFIEC 031 to require all
institutions with consolidated total
assets of $100 billion or more to file this
form, regardless of whether an
institution has any foreign offices. The
agencies are proposing this change
because institutions with consolidated
total assets of $100 billion or more
without foreign offices are considered to
have a similar degree of complexity in
their activities as institutions of this size
with foreign offices that currently file
the FFIEC 031.
Schedule RI
For the FFIEC 031, the agencies
propose to change the reporting
threshold for reporting information on
trading revenues in Memorandum items
8.a through 8.e
total assets of $100 billion or more
without foreign offices are considered to
have a similar degree of complexity in
their activities as institutions of this size
with foreign offices that currently file
the FFIEC 031.
Schedule RI
For the FFIEC 031, the agencies
propose to change the reporting
threshold for reporting information on
trading revenues in Memorandum items
8.a through 8.e. Currently, these items
are completed by institutions that
reported average trading assets of $2
million or more for any quarter of the
preceding calendar year. The agencies
propose to modify the reporting
threshold for Memorandum items 8.a
through 8.e to instruct that these items
be completed by institutions that
reported total trading assets of $10
million or more for any quarter of the
preceding calendar year, as the agencies
no longer need this level of detail in the
Call Report from institutions with lower
levels of trading assets. In addition, the
agencies propose to reduce the reporting
frequency of Memorandum item 12 from
quarterly to semiannual (June 30 and
December 31), as the agencies no longer
need this data in the Call Report as
frequently.
Schedule RI–D
For the FFIEC 031, the agencies
propose to change the reporting
threshold for completing this schedule.
Currently, this schedule is required to
be completed by an institution when its
foreign office revenues, assets, or net
income exceed 10 percent of
consolidated total revenues, total assets,
or net income. The agencies propose to
add an additional threshold that an
institution must have foreign office
assets of $10 billion or more and also
meet one of the three 10 percent tests
before the schedule is required, as the
agencies no longer need foreign office
income data in the Call Report from
institutions with a lesser amount of
foreign office assets
al revenues, total assets,
or net income. The agencies propose to
add an additional threshold that an
institution must have foreign office
assets of $10 billion or more and also
meet one of the three 10 percent tests
before the schedule is required, as the
agencies no longer need foreign office
income data in the Call Report from
institutions with a lesser amount of
foreign office assets.
Schedule RI–E
For the FFIEC 031, the agencies
propose to remove the preprinted
captions for items 1.f and 1.h, as few
institutions report having these
components of other noninterest income
in amounts in excess of the existing
reporting threshold for disclosing these
components.16 The remaining items 1.g
and 1.i through 1.l would be
renumbered as items 1.f through 1.j.
In addition, after reviewing the
agencies’ data needs along with industry
comments and feedback requesting a
higher threshold for disclosing
components of other noninterest income
and other noninterest expense in
Schedule RI–E, the agencies propose to
increase the percentage portion of the
existing threshold for reporting other
noninterest income components in
items 1.a through 1.j and other
noninterest expense components in
items 2.a through 2.p. The proposed
threshold for disclosing components of
other noninterest income and other
noninterest expense would be amounts
greater than $100,000 that exceed seven
percent of Schedule RI, item 5.l, and
item 7.d, respectively.17 This percentage
is currently three percent. The agencies
considered alternative percentage
thresholds of five percent and ten
percent. Upon evaluating the impact of
each percentage threshold, the agencies
determined that a percentage threshold
of seven percent would provide a
meaningful reduction in reporting
burden without a loss of data that would
be necessary for supervisory or other
public policy purposes
rently three percent. The agencies
considered alternative percentage
thresholds of five percent and ten
percent. Upon evaluating the impact of
each percentage threshold, the agencies
determined that a percentage threshold
of seven percent would provide a
meaningful reduction in reporting
burden without a loss of data that would
be necessary for supervisory or other
public policy purposes.
Schedule RC
For the FFIEC 031, the agencies
propose to move the reporting of
goodwill from existing item 10.a on the
balance sheet to Schedule RC–M, item
2.b (as discussed further below), and
combine existing items 10.a and 10.b on
Schedule RC into a single item 10. This
would consolidate the reporting of
goodwill and other intangible assets on
Schedule RC into a single balance sheet
item for intangible assets. This proposed
revision to Schedule RC was requested
by a commenter on the agencies’ August
2016 Call Report proposal to facilitate
institutions’ reporting by making their
Call Report processes more efficient and
better focused.18 While the agencies
believe the reporting and disclosure of
an institution’s goodwill detail is
important, the agencies are indifferent
as to the location of the information in
the Call Report.
Schedule RC–B
For the FFIEC 031, the agencies
propose to consolidate the reporting of
an institution’s holdings of U.S.
government agency obligations, which
are currently reported in items 2.a and
2.b, into a single item 2, and to
consolidate the reporting of structured
financial product holdings, which are
currently reported in items 5.b.(1)
through 5.b.(3), into a single item 5.b, as
the agencies no longer need the current
level of detail in the Call Report for
these holdings. Institutions would still
be required to report amortized cost and
fair value information in columns A
through D for the proposed items 2 and
5.b
date the reporting of structured
financial product holdings, which are
currently reported in items 5.b.(1)
through 5.b.(3), into a single item 5.b, as
the agencies no longer need the current
level of detail in the Call Report for
these holdings. Institutions would still
be required to report amortized cost and
fair value information in columns A
through D for the proposed items 2 and
5.b. The agencies also propose to reduce
the reporting frequency of the data on
sales and transfers of held-to-maturity
securities reported in Memorandum
item 3 from quarterly to semiannual
(June 30 and December 31), as the
agencies no longer need these data items
as frequently in the Call Report. The
agencies also propose to add a reporting
threshold of $10 billion or more in total
assets before institutions must complete
Memorandum items 5.a though 6.g,
columns A through D, as the agencies
no longer need this information in the
Call Report from institutions under this
proposed threshold.
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19 As explained in the description of the proposed
revisions to Schedule RC of the FFIEC 031, existing
item 2.b of Schedule RC–M would be replaced by
a revised item 2.b for reporting goodwill.
Schedule RC–C, Part I
For the FFIEC 031, the agencies
propose to reduce the reporting
frequency of Memorandum items 7.a,
7.b, 8.a, 8.b, 8.c, and 12.a through 12.d
(columns A through C) from quarterly to
semiannual (June 30 and December 31),
as the agencies no longer need these
loan data in the Call Report as
frequently
RC–M would be replaced by
a revised item 2.b for reporting goodwill.
Schedule RC–C, Part I
For the FFIEC 031, the agencies
propose to reduce the reporting
frequency of Memorandum items 7.a,
7.b, 8.a, 8.b, 8.c, and 12.a through 12.d
(columns A through C) from quarterly to
semiannual (June 30 and December 31),
as the agencies no longer need these
loan data in the Call Report as
frequently.
Schedule RC–D
For the FFIEC 031, the agencies
propose to change the reporting
threshold for the overall schedule so
that the schedule would be applicable to
institutions with total trading assets of
$10 million or more in any of the four
preceding calendar quarters from the
current threshold of $2 million or more
in average trading assets over this same
period. In addition, all institutions
meeting the FDIC’s definition of a large
institution or a highly complex
institution for deposit insurance
assessment purposes would be required
to complete Schedule RC–D. The
agencies are proposing this reporting
threshold change because they no longer
need to collect the existing detailed data
in the Call Report from institutions with
a lesser amount of trading assets that are
not large or highly complex institutions.
The agencies also propose to
consolidate:
• Structured financial products in
items 5.a.(1) through 5.a.(3) into a single
item 5.a;
• Loan detail in current items 6.a.(1),
6.a.(2), 6.a.(4), and 6.a.(5) into a single
new item 6.a.(2);
• Certain residential loan detail in
current items 6.a.(3)(a) through
6.a.(3)(b)(2) into a single new item
6.a.(1);
• Consumer loan information in items
6.c.(1) through 6.c.(4) into a single item
6.c;
• Loan detail in Memorandum items
1.a.(1), 1.a.(2), 1.a.(4), and 1.a.(5) into a
single new Memorandum item 1.a.(2);
• Certain residential loan detail in
Memorandum items 1.a.(3)(a) through
1.a.(3)(b)(2) into a single new
Memorandum item 1.a.(1); and
• Consumer loan information in
Memorandum items 1.c.(1) through
1.c.(4) into a single new Memoran
) through 6.c.(4) into a single item
6.c;
• Loan detail in Memorandum items
1.a.(1), 1.a.(2), 1.a.(4), and 1.a.(5) into a
single new Memorandum item 1.a.(2);
• Certain residential loan detail in
Memorandum items 1.a.(3)(a) through
1.a.(3)(b)(2) into a single new
Memorandum item 1.a.(1); and
• Consumer loan information in
Memorandum items 1.c.(1) through
1.c.(4) into a single new Memorandum
item 1.c.
The agencies no longer need to collect
the current level of detail in the Call
Report from those institutions that
would be required to complete Schedule
RC–D under its proposed revised
reporting threshold.
The agencies also propose to remove
column B (domestic offices) for all items
on Schedule RC–D, except for items 12
and 15 on total trading assets and total
trading liabilities in domestic offices,
respectively, which will be moved to
Schedule RC–H, Selected Balance Sheet
Items for Domestic Offices. In addition,
the agencies would replace the detailed
data on loans held for trading in
domestic offices that is reported in
items 6.a.(1) through 6.d, column B, of
Schedule RC–D with a single new item
for total loans held for trading in
domestic offices that would be added to
Schedule RC–H. The agencies propose
these changes as they no longer need
separately reported data in the Call
Report on assets and liabilities held for
trading in domestic offices other than
for the three items on total trading
assets, total trading liabilities, and total
loans held for trading in domestic
offices that would be reported in
Schedule RC–H. Institutions would
continue to report amounts in Schedule
RC–D only for the consolidated entity,
which they currently report in column
A
Call
Report on assets and liabilities held for
trading in domestic offices other than
for the three items on total trading
assets, total trading liabilities, and total
loans held for trading in domestic
offices that would be reported in
Schedule RC–H. Institutions would
continue to report amounts in Schedule
RC–D only for the consolidated entity,
which they currently report in column
A.
In addition, the agencies propose to
add a reporting threshold of $10 billion
or more in total trading assets before an
institution would be required to
complete Memorandum items 2.a
though 5.f and 7.a through 10, as the
agencies no longer need this level of
detail in the Call Report from
institutions with a lesser amount of
trading assets. The agencies also
propose to remove Memorandum item
6, as the agencies no longer need this
information.
Schedule RC–H
For the FFIEC 031, in connection with
removing the separate detail for trading
assets and liabilities in domestic offices
from Schedule RC–D, the agencies
propose to retain and relocate selected
data items to Schedule RC–H, Selected
Balance Sheet Items for Domestic
Offices. As noted above, the agencies
propose relocating total trading assets
and total trading liabilities in domestic
offices from Schedule RC–D, column B,
items 12 and 15, to Schedule RC–H,
new items 19 and 20, respectively. Also,
the agencies propose to aggregate all
loans held for trading in domestic
offices currently reported on Schedule
RC–D, column B, items 6.a through 6.d
(including all subitems), into a single
new item, Schedule RC–H, item 21.
These three items would be completed
by institutions that reported total
trading assets of $10 million or more in
any of the four preceding calendar
quarters and by all institutions meeting
the FDIC’s definition of a large or highly
complex institution for deposit
insurance assessment purposes
items 6.a through 6.d
(including all subitems), into a single
new item, Schedule RC–H, item 21.
These three items would be completed
by institutions that reported total
trading assets of $10 million or more in
any of the four preceding calendar
quarters and by all institutions meeting
the FDIC’s definition of a large or highly
complex institution for deposit
insurance assessment purposes. The
agencies believe relocating this data
from Schedule RC–D to Schedule RC–H
will improve efficiency by consolidating
additional domestic office information
on Schedule RC–H.
Schedule RC–K
For the FFIEC 031, the agencies
propose to add a reporting threshold for
item 7 on average trading assets. This
item would only need to be completed
by institutions with $10 million or more
in total trading assets in any of the four
preceding calendar quarters and by all
institutions meeting the FDIC’s
definition of a ‘‘large institution’’ or a
‘‘highly complex institution’’ for deposit
insurance assessment purposes. This
proposed new reporting threshold is
consistent with the proposed revised
threshold for completing Schedule RC–
D discussed above. The agencies no
longer need this information in the Call
Report each quarter from institutions
with less than $10 million in trading
assets that are not large or highly
complex institutions.
Schedule RC–L
For the FFIEC 031, the agencies
propose to consolidate items 1.a.(1) and
1.a.(2) into a single item 1.a.(1), as the
agencies no longer need the current
level of detail for these types of unused
commitments. The agencies also
propose to remove column B for items
16.a through 16.b.(8), and instead
include these data on over-the-counter
derivatives within column E for
derivatives with all other
counterparties. The agencies no longer
need the separate detail in the Call
Report provided by the disaggregated
data on over-the-counter derivatives for
monoline financial guarantors in
column B
ents. The agencies also
propose to remove column B for items
16.a through 16.b.(8), and instead
include these data on over-the-counter
derivatives within column E for
derivatives with all other
counterparties. The agencies no longer
need the separate detail in the Call
Report provided by the disaggregated
data on over-the-counter derivatives for
monoline financial guarantors in
column B. The agencies also propose to
reduce the reporting frequency of items
1.b.(1), 1.b.(2), 11.a, and 11.b from
quarterly to semiannual (June 30 and
December 31), as the agencies no longer
need these data in the Call Report as
frequently.
Schedule RC–M
For the FFIEC 031, the agencies
propose to consolidate items 2.b and
2.c, which provide data on certain
intangible assets, into a single item
2.c,19 and to consolidate other real
estate owned items 3.c and 3.f into a
single item 3.c, as the agencies no longer
need the current level of detail in the
Call Report that is provided in these
separate items. As discussed earlier
under Schedule RC, the agencies are
moving the goodwill amount formerly
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20 Aligning the instructions with the MBA
method would also remove the existing option for
monthly payment loans and leases under which
such loans may be reported as past due when one
scheduled payment is due and unpaid for 30 days.
reported in Schedule RC, item 10.a, to
a recaptioned item 2.b on Schedule RC–
M. The agencies also propose to reduce
the reporting frequency for items 9 (Web
site transactional capability), 14.a
(captive insurance subsidiary assets),
and 14.b (captive reinsurance subsidiary
assets) from quarterly to annual
(December 31), as the agencies no longer
need these data in the Call Report as
frequently
d in Schedule RC, item 10.a, to
a recaptioned item 2.b on Schedule RC–
M. The agencies also propose to reduce
the reporting frequency for items 9 (Web
site transactional capability), 14.a
(captive insurance subsidiary assets),
and 14.b (captive reinsurance subsidiary
assets) from quarterly to annual
(December 31), as the agencies no longer
need these data in the Call Report as
frequently.
Schedule RC–N
For the FFIEC 031, the agencies
propose to reduce the reporting
frequency of Memorandum items 7 and
8 on nonaccrual assets and
Memorandum items 9.a and 9.b on
purchased credit-impaired loans from
quarterly to semiannual (June 30 and
December 31), as the agencies no longer
need these data in the Call Report as
frequently. In connection with this
proposed change, Memorandum items 7
and 8 would collect data on additions
to nonaccrual assets and nonaccrual
asset sales, respectively, during the
preceding six months rather than the
preceding quarter as at present.
D. Additional Proposed Revisions to All
Versions of the Call Report
1. Instructional Revision for the
Reporting of Assets as ‘‘Past Due’’
Under the current Call Report
instructions, closed-end installment
loans, amortizing loans secured by real
estate, and any other loans and lease
financing receivables with payments
scheduled monthly are to be reported as
past due in Schedule RC–N, Past Due
and Nonaccrual Loans, Leases, and
Other Assets, when the borrower is in
arrears two or more monthly payments.
This has been interpreted to mean that
a loan is to be reported as past due if
two monthly payments have not been
received by the close of business on the
due date of the second monthly
payment. Similarly, the Call Report
instructions provide that open-end
credit such as credit cards, check credit,
and other revolving credit plans are to
be reported as past due when the
customer has not made the minimum
payment for two or more billing cycles
reported as past due if
two monthly payments have not been
received by the close of business on the
due date of the second monthly
payment. Similarly, the Call Report
instructions provide that open-end
credit such as credit cards, check credit,
and other revolving credit plans are to
be reported as past due when the
customer has not made the minimum
payment for two or more billing cycles.
The instructions also provide that, at an
institution’s option, loans and leases
with payments scheduled monthly may
be reported as past due when one
scheduled payment is due and unpaid
for 30 days or more.
The agencies note there is an existing
widely used industry standard, known
as the Mortgage Bankers Association
(MBA) method, which provides that
loans with payments scheduled
monthly become 30 days past due if a
monthly payment is not received by the
end of the day immediately preceding
the loan’s next due date. The agencies
understand that the MBA method is
used by most major mortgage data
repositories, including the three major
credit bureaus and two major mortgage
loan data processing service bureaus
used by institutions. The MBA method
is also used by reporting forums such as
the MBA, McDash Analytics, and the
OCC Mortgage Metrics Reports.
Therefore, to promote the use of a
consistent standard in the industry and
reduce the burden for certain
institutions calculating past-due loans
under two methods, i.e., one method for
Call Report purposes and a different
method for other reporting purposes, the
agencies propose to modify the
definition of ‘‘past due’’ for regulatory
reporting purposes that is currently
contained in the general instructions of
Schedule RC–N to align with the MBA
method.20 Specifically, closed-end
installment loans, amortizing loans
secured by real estate, and any other
loans and lease financing receivables
with payments scheduled monthly, as
well as open-end credit such as credit
cards, check credit, and other revolving
credit plans with payments sc
es that is currently
contained in the general instructions of
Schedule RC–N to align with the MBA
method.20 Specifically, closed-end
installment loans, amortizing loans
secured by real estate, and any other
loans and lease financing receivables
with payments scheduled monthly, as
well as open-end credit such as credit
cards, check credit, and other revolving
credit plans with payments scheduled
monthly, would be reported as past due
in Schedule RC–N if a payment is not
received by the end of the day
immediately preceding the loan’s next
payment due date. For institutions with
consolidated assets of more than $50
billion, the agencies estimate that using
the MBA method to report loans as 30
through 89 day past due in the Call
Report would have resulted in
approximately $15 billion in additional
loans being reported as past due as of
December 31, 2015, compared to the
amount of loans reported as past due in
accordance with the current Call Report
instructions.
The following are examples of the
application of this proposed revised
past due definition:
• A monthly loan payment is due
April 1. With no payment received by
the end of the day on April 30, which
is the day immediately preceding the
loan’s next payment due date, the loan
would be considered 30 days past due
for reporting purposes as of April 30.
With no monthly payment received by
May 31, the loan would be 61 days past
due as of May 31. With no monthly
payment received by June 30, the loan
would be 91 days past due as June 30.
For the June 30 Call Report, this loan
would be reported in the 90 days or
more past due category (unless it had
been placed in nonaccrual status).
• A monthly loan payment is due
April 15. With no payment received by
April 30, the loan is not a full month
past due, so it would not be considered
past due for regulatory reporting
purposes until May 14, which is the day
immediately preceding the loan’s next
payment due date
an
would be reported in the 90 days or
more past due category (unless it had
been placed in nonaccrual status).
• A monthly loan payment is due
April 15. With no payment received by
April 30, the loan is not a full month
past due, so it would not be considered
past due for regulatory reporting
purposes until May 14, which is the day
immediately preceding the loan’s next
payment due date. The loan will be 46
days past due if payment has not been
received as of May 31 and 76 days past
due if payment has not been received as
of June 30. For the June 30 Call Report,
this loan would be reported in the 30
through 89 days past due category
(unless it had been placed in nonaccrual
status).
The agencies believe that aligning the
Call Report method for determining past
due status with an accepted industry
standard for determining past due status
(i.e., the MBA method) would lessen the
burden imposed on institutions that
maintain two separate processes for
reporting loan delinquencies. Further,
the agencies believe that consistent
reporting on the past due status of loans
is increasingly important as institutions
plan their implementation of a new
accounting standard on credit losses.
The agencies invite comment on any
difficulties that institutions would
encounter in applying this proposed
modified past due definition beginning
as of the March 31, 2018, report date.
2. Proposed Call Report Revisions To
Address Changes in Accounting for
Equity Investments
In January 2016, the Financial
Accounting Standards Board (FASB)
issued ASU 2016–01, ‘‘Recognition and
Measurement of Financial Assets and
Financial Liabilities.’’ In its summary of
this ASU, the FASB described how one
of the main provisions of the ASU
differs from current U.S
1, 2018, report date.
2. Proposed Call Report Revisions To
Address Changes in Accounting for
Equity Investments
In January 2016, the Financial
Accounting Standards Board (FASB)
issued ASU 2016–01, ‘‘Recognition and
Measurement of Financial Assets and
Financial Liabilities.’’ In its summary of
this ASU, the FASB described how one
of the main provisions of the ASU
differs from current U.S. generally
accepted accounting principles (GAAP)
as follows:
The amendments in this Update supersede
the guidance to classify equity securities with
readily determinable fair values into different
categories (that is, trading or available-for-
sale) and require equity securities (including
other ownership interests, such as
partnerships, unincorporated joint ventures,
and limited liability companies) to be
measured at fair value with changes in the
fair value recognized through net income. An
entity’s equity investments that are
accounted for under the equity method of
accounting or result in consolidation of an
investee are not included within the scope of
this Update.
The FASB further stated in the
summary that ‘‘an entity may choose to
measure equity investments that do not
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21 Schedule RC–Q is to be completed by (1)
institutions that had total assets of $500 million or
more as of the beginning of their fiscal year and (2)
other institutions that either have elected to report
financial instruments or servicing assets and
liabilities at fair value under a fair value option or
are required to complete Schedule RC–D, Trading
Assets and Liabilities. Schedule RC–Q is not
included in the FFIEC 051 Call Report
institutions that had total assets of $500 million or
more as of the beginning of their fiscal year and (2)
other institutions that either have elected to report
financial instruments or servicing assets and
liabilities at fair value under a fair value option or
are required to complete Schedule RC–D, Trading
Assets and Liabilities. Schedule RC–Q is not
included in the FFIEC 051 Call Report.
have readily determinable fair values at
cost minus impairment, if any, plus or
minus changes resulting from
observable price changes in orderly
transactions for the identical or a similar
investment of the same issuer.’’
Institutions must apply ASU 2016–01
for Call Report purposes in accordance
with the effective dates set forth in the
ASU. For institutions that are public
business entities, as defined in U.S.
GAAP, ASU 2016–01 is effective for
fiscal years beginning after December
15, 2017, including interim periods
within those fiscal years. For example,
an institution with a calendar year fiscal
year that is a public business entity
must begin to apply ASU 2016–01 in its
Call Report for March 31, 2018. For all
other institutions, the ASU is effective
for fiscal years beginning after December
15, 2018, and interim periods within
fiscal years beginning after December
15, 2019. For example, an institution
with a calendar year fiscal year that is
not a public business entity must begin
to apply ASU 2016–01 in its Call Report
for December 31, 2019.
One outcome of the change in
accounting for equity investments under
ASU 2016–01 is the elimination of the
concept of available-for-sale (AFS)
equity securities, which are measured at
fair value on the balance sheet with
changes in fair value recognized through
other comprehensive income
ot a public business entity must begin
to apply ASU 2016–01 in its Call Report
for December 31, 2019.
One outcome of the change in
accounting for equity investments under
ASU 2016–01 is the elimination of the
concept of available-for-sale (AFS)
equity securities, which are measured at
fair value on the balance sheet with
changes in fair value recognized through
other comprehensive income. At
present, the historical cost and fair
value of AFS equity securities, i.e.,
investments in mutual funds and other
equity securities with readily
determinable fair values that are not
held for trading, are reported in Call
Report Schedule RC–B, item 7, columns
C and D, respectively. The total fair
value of AFS securities, which includes
both debt and equity securities, is then
carried forward to the Call Report
balance sheet and reported in Schedule
RC, item 2.b. In the FFIEC 041 and
FFIEC 031 Call Reports, the total fair
value of AFS securities reported in
Schedule RC, item 2.b, also is reported
in item 1, column A, of Schedule RC–
Q, Assets and Liabilities Measured at
Fair Value on a Recurring Basis, by
institutions required to complete this
schedule.21 These institutions then
report in columns C, D, and E of item
1 a breakdown of their AFS debt
securities by the level in the fair value
hierarchy within which the fair value
amounts of these securities fall (Level 1,
2, or 3). Any balance sheet netting
adjustments to these fair value amounts
are reported in column B of item 1.
In addition, the total fair value of AFS
securities is reported in Schedule RC–R,
Part II, for risk-weighting purposes
under the agencies’ regulatory capital
rules. This fair value amount is reported
in Schedule RC–R, Part II, item 2.b,
column A, except for the fair value of
those AFS securities that qualify as
securitization exposures, which is
reported in Schedule RC–R, Part II, item
9.b, column A
the total fair value of AFS
securities is reported in Schedule RC–R,
Part II, for risk-weighting purposes
under the agencies’ regulatory capital
rules. This fair value amount is reported
in Schedule RC–R, Part II, item 2.b,
column A, except for the fair value of
those AFS securities that qualify as
securitization exposures, which is
reported in Schedule RC–R, Part II, item
9.b, column A. To the extent
appropriate under the regulatory capital
rules, adjustments to the fair values
reported in column A of items 2.b and
9.b are reported in column B. The
adjusted amount in item 2.b is then
allocated to the appropriate risk-weight
category in columns C through N. The
adjusted amount of AFS securitization
exposures in item 9.b is reported by
risk-weight category in column Q or by
risk-weighted asset amount in column T
or U based on the risk-weighting
approach or approaches applied by an
institution.
At present, the accumulated balance
of the unrealized gains (losses) on AFS
equity securities, net of applicable
income taxes, that have been recognized
through other comprehensive income is
included in accumulated other
comprehensive income (AOCI), which is
reported in the equity capital section of
the Call Report balance sheet in
Schedule RC, item 26.b. With the
elimination of AFS equity securities on
the effective date of ASU 2016–01, the
net unrealized gains (losses) on these
securities that had been included in
AOCI will be reclassified (transferred)
from AOCI into the retained earnings
component of equity capital, which is
reported on the Call Report balance
sheet in Schedule RC, item 26.a. After
the effective date, changes in the fair
value of (i.e., the unrealized gains and
losses on) an institution’s equity
securities that would have been
classified as AFS had the previously
applicable accounting standards
remained in effect will be recognized
through net income rather than other
comprehensive income
s
reported on the Call Report balance
sheet in Schedule RC, item 26.a. After
the effective date, changes in the fair
value of (i.e., the unrealized gains and
losses on) an institution’s equity
securities that would have been
classified as AFS had the previously
applicable accounting standards
remained in effect will be recognized
through net income rather than other
comprehensive income.
The effect of the elimination of AFS
equity securities as a distinct asset
category upon institutions’
implementation of ASU 2016–01 carries
over to the agencies’ regulatory capital
rules. Under these rules, institutions
that are eligible to and have elected to
make the AOCI opt-out election deduct
net unrealized losses on AFS equity
securities from common equity tier 1
capital and include 45 percent of pretax
net unrealized gains on AFS equity
securities in tier 2 capital. For purposes
of reporting regulatory capital
components and ratios in the Call
Report, the deduction of these net
unrealized losses is currently effected
through the combination of Schedule
RC–R, Part I, items 9.a, ‘‘LESS: Net
unrealized gains (losses) on available-
for-sale securities,’’ and 9.b, ‘‘LESS: Net
unrealized loss on available-for-sale
preferred stock classified as an equity
security under GAAP and available-for-
sale equity exposures.’’ The inclusion of
45 percent of pretax net unrealized
gains in tier 2 capital currently occurs
through the reporting of this percentage
of an institution’s gains in Schedule
RC–R, Part I, item 31, ‘‘Unrealized gains
on available-for-sale preferred stock
classified as an equity security under
GAAP and available-for-sale equity
exposures includable in tier 2 capital.’’
When ASU 2016–01 takes effect and the
classification of equity securities as AFS
is eliminated for accounting and
reporting purposes under U.S. GAAP,
the concept of unrealized gains and
losses on AFS equity securities will
likewise cease to exist
le-for-sale preferred stock
classified as an equity security under
GAAP and available-for-sale equity
exposures includable in tier 2 capital.’’
When ASU 2016–01 takes effect and the
classification of equity securities as AFS
is eliminated for accounting and
reporting purposes under U.S. GAAP,
the concept of unrealized gains and
losses on AFS equity securities will
likewise cease to exist.
Another outcome of the change in
accounting for equity investments under
ASU 2016–01 is that equity securities
and other equity investments without
readily determinable fair values that are
within the scope of ASU 2016–01 and
are not held for trading must be
measured at fair value through net
income, rather than at cost (less
impairment, if any), unless the
measurement election described above
is applied to individual equity
investments. In general, institutions
currently report their holdings of such
equity securities without readily
determinable fair values as a category of
other assets in Call Report Schedule
RC–F, item 4. The total amount of an
institution’s other assets is reported on
the Call Report balance sheet in
Schedule RC, item 11.
At present, AFS equity securities and
equity investments without readily
determinable fair values are included in
the quarterly averages reported in
Schedule RC–K. Institutions report the
quarterly average for ‘‘All other
securities’’ in item 4 of this schedule
and this average reflects AFS equity
securities at historical cost. A quarterly
average for total assets is reported in
item 9 of Schedule RC–K. Among its
uses, average total assets serves as the
starting point for determining the
denominator for the tier 1 leverage ratio
under the agencies’ regulatory capital
rules. The quarterly average for total
assets currently reflects AFS equity
securities at the lower of cost or fair
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he
starting point for determining the
denominator for the tier 1 leverage ratio
under the agencies’ regulatory capital
rules. The quarterly average for total
assets currently reflects AFS equity
securities at the lower of cost or fair
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value and equity securities without
readily determinable fair values at
historical cost.
Finally, institutions with foreign
offices report the fair value of their AFS
equity securities in domestic offices and
the historical cost of their equity
securities without readily determinable
fair values in domestic offices in
Schedule RC–H, items 16 and 18,
respectively, of the FFIEC 031 Call
Report. The domestic office holdings of
these equity securities are components
of the AFS equity securities and equity
securities without readily determinable
fair values reported on a consolidated
basis in Schedule RC–B, item 7, and
Schedule RC–F, item 4, respectively.
The agencies have considered the
changes to the accounting for equity
investments under ASU 2016–01 and
the effect of these changes on the
manner in which data on equity
securities and other equity investments
is currently reported in the Call Report.
The agencies also note that, because of
the different effective dates for ASU
2016–01 for public business entities and
all other entities, as well as the varying
fiscal years across the population of
institutions that file Call Reports, the
period over which institutions will be
implementing this ASU ranges from the
first quarter of 2018 through the fourth
quarter of 2020. December 31, 2020, will
be the first quarter-end Call Report date
as of which all institutions would be
required to prepare their Call Reports in
accordance with ASU 2016–01
ng
fiscal years across the population of
institutions that file Call Reports, the
period over which institutions will be
implementing this ASU ranges from the
first quarter of 2018 through the fourth
quarter of 2020. December 31, 2020, will
be the first quarter-end Call Report date
as of which all institutions would be
required to prepare their Call Reports in
accordance with ASU 2016–01. As a
result, the agencies are proposing
revisions to the reporting of information
on equity securities and other equity
investments in response to the ASU that
would be introduced in the Call Report
effective March 31, 2018, but would not
be fully phased in until the Call Report
for December 31, 2020. In developing
these proposed Call Report revisions,
the agencies have followed the guiding
principles for evaluating potential
additions and deletions of Call Report
data items and other revisions to the
Call Report identified in Section I
above. In following these principles, the
agencies have sought to limit the
number of data items being added to the
Call Report to address the changes in
accounting for equity securities and
other equity investments.
The proposed Call Report revisions
related to equity securities are as
follows:
(1) To provide transparency to the
effect of unrealized gains and losses on
equity securities not held for trading on
an institution’s net income during the
year-to-date reporting period in
Schedule RI, Income Statement, and to
clearly distinguish these gains and
losses from the rest of an institution’s
income (loss) from its continuing
operations, Schedule RI, item 8, would
be revised effective March 31, 2018, by
creating new items 8.a, ‘‘Income (loss)
before unrealized holding gains (losses)
on equity securities not held for trading,
applicable income taxes, and
discontinued operations,’’ and 8.b,
‘‘Unrealized holding gains (losses) on
equity securities not held for trading.’’
In addition to unrealized holding gains
(losses) during the year-to-date re
ould
be revised effective March 31, 2018, by
creating new items 8.a, ‘‘Income (loss)
before unrealized holding gains (losses)
on equity securities not held for trading,
applicable income taxes, and
discontinued operations,’’ and 8.b,
‘‘Unrealized holding gains (losses) on
equity securities not held for trading.’’
In addition to unrealized holding gains
(losses) during the year-to-date reporting
period on such equity securities with
readily determinable fair values,
institutions also would report in
proposed new item 8.b the year-to-date
changes in the carrying amounts of
equity investments without readily
determinable fair values not held for
trading (i.e., unrealized holding gains
(losses) for those measured at fair value
through earnings; impairment, if any,
plus or minus changes resulting from
observable price changes for those
equity investments for which this
measurement election is made). Existing
Schedule RI, item 8, ‘‘Income (loss)
before applicable income taxes and
discontinued operations,’’ would be
renumbered as item 8.c, and would be
the sum of items 8.a and 8.b. From
March 31, 2018, through September 30,
2020, the instructions for item 8.b and
the reporting form for Schedule RI
would include guidance stating that
item 8.b is to be completed only by
institutions that have adopted ASU
2016–01. Institutions that have not
adopted ASU 2016–01 would leave item
8.b blank when completing Schedule RI.
Finally, from March 31, 2018, through
September 30, 2020, the instructions for
Schedule RI, item 6.b, ‘‘Realized gains
(losses) on available-for-sale securities,’’
and the reporting form for Schedule RI
would include guidance stating that, for
institutions that have adopted ASU
2016–01, item 6.b includes realized
gains (losses) only on AFS debt
securities. Effective December 31, 2020,
the caption for item 6.b would be
revised to ‘‘Realized gains (losses) on
available-for-sale debt securities.’’
ed gains
(losses) on available-for-sale securities,’’
and the reporting form for Schedule RI
would include guidance stating that, for
institutions that have adopted ASU
2016–01, item 6.b includes realized
gains (losses) only on AFS debt
securities. Effective December 31, 2020,
the caption for item 6.b would be
revised to ‘‘Realized gains (losses) on
available-for-sale debt securities.’’
(2) On the FFIEC 031, certain
institutions with foreign offices must
complete Schedule RI–D, Income from
Foreign Offices. As stated in the
instructions for Schedule RI–D, ‘‘[f]or
the most part, the income and expense
items in Schedule RI–D mirror
categories of income and expense
reported in Schedule RI.’’ However,
Schedule RI–D collects much less detail
on an institution’s income and expense
than Schedule RI. The instructions for
Schedule RI would be revised effective
March 31, 2018, to indicate that, for
institutions that have adopted ASU
2016–01, the amount of unrealized
holding gains (losses) on equity
securities not held for trading in foreign
offices that is included in Schedule RI,
item 8.b, should be reported in
Schedule RI–D, item 5, ‘‘Realized gains
(losses) on held-to-maturity and
available-for-sale securities in foreign
offices.’’ Effective December 31, 2020,
the caption for item 5 would be revised
to ‘‘Realized gains (losses) on held-to-
maturity and available-for-sale debt
securities and unrealized holding gains
(losses) on equity securities not held for
trading in foreign offices.’’
d in
Schedule RI–D, item 5, ‘‘Realized gains
(losses) on held-to-maturity and
available-for-sale securities in foreign
offices.’’ Effective December 31, 2020,
the caption for item 5 would be revised
to ‘‘Realized gains (losses) on held-to-
maturity and available-for-sale debt
securities and unrealized holding gains
(losses) on equity securities not held for
trading in foreign offices.’’
(3) In Schedule RC, Balance Sheet, a
new item 2.c, ‘‘Equity securities with
readily determinable fair values not
held for trading,’’ would be added
effective March 31, 2018. From March
31, 2018, through September 30, 2020,
the instructions for item 2.c and the
reporting form for Schedule RC would
include guidance stating that item 2.c is
to be completed only by institutions that
have adopted ASU 2016–01. Institutions
that have not adopted ASU 2016–01
would leave item 2.c blank. During this
period, the instructions for Schedule
RC, item 2.b, ‘‘Available-for-sale
securities,’’ would explain that
institutions that have adopted ASU
2016 01 should include only debt
securities in item 2.b. Effective
December 31, 2020, the caption for item
2.b would be revised to ‘‘Available-for-
sale debt securities’’ and all institutions
would report their holdings of equity
securities with readily determinable fair
values not held for trading in item 2.c.
(4) In Schedule RC–B, Securities, item
7, ‘‘Investments in mutual funds and
other equity securities with readily
determinable fair values,’’ would be
removed effective December 31, 2020.
From March 31, 2018, through
September 30, 2020, the instructions for
item 7 and the reporting form for
Schedule RC–B would include guidance
stating that item 7 is to be completed
only by institutions that have not
adopted ASU 2016–01. Institutions that
have adopted ASU 2016–01 would leave
item 2.c blank.
readily
determinable fair values,’’ would be
removed effective December 31, 2020.
From March 31, 2018, through
September 30, 2020, the instructions for
item 7 and the reporting form for
Schedule RC–B would include guidance
stating that item 7 is to be completed
only by institutions that have not
adopted ASU 2016–01. Institutions that
have adopted ASU 2016–01 would leave
item 2.c blank.
(5) In Schedule RC–F, Other Assets,
the caption for item 4 would be changed
from ‘‘Equity securities that DO NOT
have readily determinable fair values’’
to ‘‘Equity investments without readily
determinable fair values’’ effective
March 31, 2018. The types of equity
securities and other equity investments
currently reported in item 4 would
continue to be reported in this item.
However, after the effective date of ASU
2016–01 for an institution, the securities
the institution reports in item 4 would
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be measured in accordance with the
ASU.
(6) In Schedule RC–H, Selected
Balance Sheet Items for Domestic
Offices, of the FFIEC 031, item 16,
‘‘Investments in mutual funds and other
equity securities with readily
determinable fair values,’’ would be
removed effective December 31, 2020,
and the caption for item 17 would be
changed from ‘‘Total held-to-maturity
and available-for-sale securities (sum of
items 10 through 16)’’ to ‘‘Total held-to-
maturity and available-for-sale debt
securities (sum of items 10 through
15).’’ From March 31, 2018, through
September 30, 2020, the instructions for
item 16 and the reporting form for
Schedule RC–H would include guidance
stating that item 16 is to be completed
only by institutions that have not
adopted ASU 2016–01. Institutions that
have adopted ASU 2016–01 would leave
item 16 blank
o-
maturity and available-for-sale debt
securities (sum of items 10 through
15).’’ From March 31, 2018, through
September 30, 2020, the instructions for
item 16 and the reporting form for
Schedule RC–H would include guidance
stating that item 16 is to be completed
only by institutions that have not
adopted ASU 2016–01. Institutions that
have adopted ASU 2016–01 would leave
item 16 blank. In addition, effective
March 31, 2018, item 18, ‘‘Equity
securities that do not have readily
determinable fair values,’’ would be
replaced by item 18.a, ‘‘Equity securities
with readily determinable fair values,’’
and item 18.b, ‘‘Equity investments
without readily determinable fair
values.’’ From March 31, 2018, through
September 30, 2020, the instructions for
item 18.a and the reporting form for
Schedule RC–H would include guidance
stating that item 18.a is to be completed
only by institutions that have adopted
ASU 2016–01. Institutions that have not
adopted ASU 2016–01 would leave item
18.a blank. The types of equity
securities and other equity investments
without readily determinable fair values
that are currently reported in item 18
would be reported in item 18.b.
(7) In Schedule RC–K, Quarterly
Averages, the caption for item 4, ‘‘All
other securities,’’ would be changed to
‘‘All other debt securities and equity
securities with readily determinable fair
values not held for trading purposes’’
effective March 31, 2018. From March
31, 2018, through September 30, 2020,
the instructions for item 4 and the
reporting form for Schedule RC–K
would include guidance indicating that,
for institutions that have adopted ASU
2016–01, the quarterly average for
equity securities with readily
determinable fair values should be
based on fair value and, for institutions
that have not adopted ASU 2016–01, the
quarterly average for such equity
securities (i.e., AFS equity securities)
should be based on historical cost
m for Schedule RC–K
would include guidance indicating that,
for institutions that have adopted ASU
2016–01, the quarterly average for
equity securities with readily
determinable fair values should be
based on fair value and, for institutions
that have not adopted ASU 2016–01, the
quarterly average for such equity
securities (i.e., AFS equity securities)
should be based on historical cost.
Effective December 31, 2020, this
guidance would indicate that the
quarterly average for equity securities
with readily determinable fair values
not held for trading should be based on
fair value, which would apply to all
institutions. In addition, for Schedule
RC–K, item 9, ‘‘Total assets,’’ the
instructions for this item and the
Schedule RC–K reporting form would
include guidance from March 31, 2018,
through September 30, 2020, stating
that, for purposes of reporting the
quarterly average for total assets:
• Institutions that have adopted ASU
2016–01 should reflect the quarterly
average for equity securities with
readily determinable fair values at fair
value and the quarterly average for
equity securities without readily
determinable fair values at their balance
sheet carrying amounts (i.e., fair value
or, if elected, cost minus impairment, if
any, plus or minus changes resulting
from observable price changes), and
• Institutions that have not adopted
ASU 2016–01 should reflect the
quarterly average for equity securities
with readily determinable fair values at
the lower of cost or fair value and the
quarterly average for equity securities
without readily determinable fair values
at historical cost.
Then, effective December 31, 2020,
the instructions for item 9 and the
Schedule RC–K reporting form would
indicate that, for equity securities not
held for trading, the quarterly average
for total assets should reflect such
securities with readily determinable fair
values at fair value and those without
readily determinable fair values at their
balance sheet carrying amounts
orical cost.
Then, effective December 31, 2020,
the instructions for item 9 and the
Schedule RC–K reporting form would
indicate that, for equity securities not
held for trading, the quarterly average
for total assets should reflect such
securities with readily determinable fair
values at fair value and those without
readily determinable fair values at their
balance sheet carrying amounts.
(8) In Schedule RC–Q on the FFIEC
041 and FFIEC 031, the caption for item
1, ‘‘Available-for-sale securities,’’ would
be changed to ‘‘Available-for-sale debt
securities and equity securities with
readily determinable fair values not
held for trading purposes’’ effective
March 31, 2018. From March 31, 2018,
through September 30, 2020, the
instructions for item 1 and the reporting
form for Schedule RC–Q would include
guidance stating that, for institutions
that have adopted ASU 2016–01, the
amount reported in item 1, column A,
must equal the sum of Schedule RC,
items 2.b and 2.c, and for institutions
that have not adopted ASU 2016–01, the
amount reported in item 1, column A,
must equal Schedule RC, item 2.b.
Effective December 31, 2020, this
guidance would indicate that the
amount reported in item 1, column A,
must equal the sum of Schedule RC,
items 2.b and 2.c.
(9) In Schedule RC–R, Part I,
Regulatory Capital Components and
Ratios, the instructions for item 9.a and
the Schedule RC–R reporting form
would include guidance from March 31,
2018, through September 30, 2020,
stating that, for institutions that have
not adopted ASU 2016–01, item 9.a
should include net unrealized gains
(losses) on AFS debt and equity
securities and, for institutions that have
adopted the ASU, item 9.a should
include net unrealized gains (losses) on
AFS debt securities. During this same
period, the instructions for item 9.b and
the Schedule RC–R reporting form
would include guidance indicating that
item 9.b is to be completed only by
institutions that have not adopted ASU
2016–01
gains
(losses) on AFS debt and equity
securities and, for institutions that have
adopted the ASU, item 9.a should
include net unrealized gains (losses) on
AFS debt securities. During this same
period, the instructions for item 9.b and
the Schedule RC–R reporting form
would include guidance indicating that
item 9.b is to be completed only by
institutions that have not adopted ASU
2016–01. Effective December 31, 2020,
item 9.b would be removed and the
caption for item 9.a would be revised to
‘‘LESS: Net unrealized gains (losses) on
available-for-sale debt securities.’’ In
addition, from March 31, 2018, through
September 30, 2020, the instructions for
Schedule RC–R, Part I, item 31, and the
Schedule RC–R reporting form would
include guidance indicating that item 31
is to be completed only by institutions
that have not adopted ASU 2016–01.
During this period, institutions that
have adopted the ASU would leave item
31 blank. Then, effective December 31,
2020, item 31 would be removed from
Schedule RC–R, Part I.
(9) In Schedule RC–R, Part II, Risk-
Weighted Assets, revisions would be
made to item 2 that correspond to those
made to Schedule RC, item 2. A new
item 2.c, ‘‘Equity securities with readily
determinable fair values not held for
trading,’’ would be added to Schedule
RC–R, Part II, effective March 31, 2018.
Applicable risk weights for new item 2.c
would be 100 percent, 250 percent, 300
percent, and 600 percent; amounts also
could be reported in columns R and S.
From March 31, 2018, through
September 30, 2020, the instructions for
item 2.c and the reporting form for
Schedule RC–R, Part II, would include
guidance stating that item 2.c is to be
completed only by institutions that have
adopted ASU 2016–01. During the same
period, the instructions for Schedule
RC–R, Part II, item 2.b, ‘‘Available-for-
sale securities,’’ would explain that
institutions that have adopted ASU
2016–01 should include only debt
securities in this item
d the reporting form for
Schedule RC–R, Part II, would include
guidance stating that item 2.c is to be
completed only by institutions that have
adopted ASU 2016–01. During the same
period, the instructions for Schedule
RC–R, Part II, item 2.b, ‘‘Available-for-
sale securities,’’ would explain that
institutions that have adopted ASU
2016–01 should include only debt
securities in this item. Effective
December 31, 2020, the caption for item
2.b would be revised to ‘‘Available-for-
sale debt securities’’ and the 250
percent, 300 percent, and 600 percent
risk weights plus columns R and S
would be removed from item 2.b.
IV. Timing
The proposed changes in this notice
would be effective beginning with the
March 31, 2018, Call Report. The
agencies are considering whether some
or all of the changes proposed in
Sections III.A through III.C instead
should become effective with the
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December 31, 2017, Call Report to
provide burden relief at an earlier date.
However, the agencies recognize that it
could be more burdensome for
institutions to implement revisions at
year-end rather than in the first quarter
of the year.
For the March 31, 2018, report date or
any earlier effective date, as applicable,
institutions may provide reasonable
estimates for any new or revised Call
Report data item initially required to be
reported as of that date for which the
requested information is not readily
available. The specific wording of the
captions for the new or revised Call
Report data items discussed in this
proposal and the numbering of these
data items should be regarded as
preliminary.
V. Request for Comment
Public comment is requested on all
aspects of this joint notice. Comment is
specifically invited on:
ted as of that date for which the
requested information is not readily
available. The specific wording of the
captions for the new or revised Call
Report data items discussed in this
proposal and the numbering of these
data items should be regarded as
preliminary.
V. Request for Comment
Public comment is requested on all
aspects of this joint notice. Comment is
specifically invited on:
(a) Whether institutions prefer the
agencies’ approach to implement all the
revisions as of March 31, 2018, or
whether institutions would prefer an
earlier implementation date for some or
all of the revisions proposed in Sections
III.A through III.C of this notice;
(b) Whether the proposed revisions to
the collections of information that are
the subject of this notice are necessary
for the proper performance of the
agencies’ functions, including whether
the information has practical utility;
(c) 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;
(d) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(e) 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
(f) 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. All comments will become
a matter of public record.
Appendix A
Summary of the FFIEC Member Entities’
Uses of the Data Items in the Call Report
Schedules in the Portion of the User Surveys
Evaluated in the Development of This
Proposal
Schedule RI–D (Income from Foreign Offices)
[FFIEC 031 only]
Schedule RI–D collects data on income
from foreign offices
will be shared among
the agencies. All comments will become
a matter of public record.
Appendix A
Summary of the FFIEC Member Entities’
Uses of the Data Items in the Call Report
Schedules in the Portion of the User Surveys
Evaluated in the Development of This
Proposal
Schedule RI–D (Income from Foreign Offices)
[FFIEC 031 only]
Schedule RI–D collects data on income
from foreign offices. Collectively, the data are
used in country and currency risk analyses
to monitor the level, trend, quality and
sustainability of the income component of
foreign offices. These data help support a
variety of examination activities that include,
but are not limited to, earnings and yield
analysis, asset securitizations, core
assessment, price risk, and trading. Quarterly
data also improve the offsite monitoring of
trading and asset management activities. Data
on investment banking, advisory, brokerage,
and underwriting fees and commissions are
used to track the global asset management
activities of institutions with foreign offices.
The global presence of these activities adds
to the complexity of the asset management
business conducted by financial institutions
and this information is continually
monitored to detect potential shifts in
business models. It also serves as one
component of measurement of the degree of
global interconnectedness and systemic risk.
Schedule RI–E (Explanations)
Schedule RI–E collects explanations for
items that significantly contribute to the total
amounts reported for other noninterest
income and other noninterest expense. Since
other noninterest income makes up almost
half of total noninterest income and other
noninterest expense makes up approximately
40 percent of noninterest expense on an
aggregate basis for all filers of the Call Report,
data on the composition of each of these
income statement data items is essential to
understanding what is driving the level of
and changes over time in these data items at
individual institutions
e makes up almost
half of total noninterest income and other
noninterest expense makes up approximately
40 percent of noninterest expense on an
aggregate basis for all filers of the Call Report,
data on the composition of each of these
income statement data items is essential to
understanding what is driving the level of
and changes over time in these data items at
individual institutions. The stratification of
the information in this schedule allows for
identification of potential unusual sources of
changes in earnings that affect trend
analyses. This information is particularly
important for identifying losses of an unusual
or nonrecurring nature when an institution is
in a stressed condition, which was evident
during the recent financial crisis. This
stratified noninterest income and expense
information continues to be critical in
understanding the causes of swings in an
institution’s profitability.
Schedule RI–E also collects descriptive
information on discontinued operations,
significant adjustments to the allowance for
loan and lease losses (ALLL), accounting
changes and error corrections, and certain
capital transactions with stockholders. These
data items provide the agencies and their
examiners better insight on factors driving
changes in net income and the ALLL (due to
sources other than provisions, charge-offs,
and recoveries), along with nonrecurring
types of changes in institutions’ equity
capital.
The detailed breakdown of components of
other noninterest income in excess of the
Schedule RI–E reporting threshold is
essential to the Consumer Financial
Protection Bureau’s (CFPB) understanding of
the viability of institutions’ offerings of
consumer services regulated by the CFPB.
This information provides unique insights
into institutions’ reliance on key revenue
streams that can impact consumer access to
and the availability of services
rest income in excess of the
Schedule RI–E reporting threshold is
essential to the Consumer Financial
Protection Bureau’s (CFPB) understanding of
the viability of institutions’ offerings of
consumer services regulated by the CFPB.
This information provides unique insights
into institutions’ reliance on key revenue
streams that can impact consumer access to
and the availability of services. These
streams include bank and credit card
interchange, income and fees from automated
teller machines, and institution-described
components of other noninterest income.
This information also helps the CFPB
monitor trends in the consumer marketplace.
Similarly, the detailed breakdown of other
noninterest expense facilitates the CFPB’s
ability to conduct statutorily-required cost
analyses for rulemakings and other policy
endeavors.
Schedule RC–B (Securities)
Information collected on Schedule RC–B is
essential for assessment of liquidity risk,
market risk, interest rate risk, and credit risk.
Specifically, information on held-to-maturity,
available-for-sale, and pledged securities is
critical for analysis of the institution’s ability
to manage short-term financial obligations
without negatively impacting capital or
income (liquidity risk), and risk of loss due
to market movements (market risk). Maturity
and repricing information on debt securities
collected in the Memorandum items on
Schedule RC–B, together with the maturity
and repricing information collected in other
schedules for other types of assets and
liabilities, is critical for the assessment of the
risk to an institution from changes in interest
rates (interest rate risk), and also contributes
to the evaluation of liquidity. Thus, the
maturity and repricing information collected
throughout the Call Report also aids in
evaluating the strategies institutions take to
mitigate liquidity and interest rate risks
r other types of assets and
liabilities, is critical for the assessment of the
risk to an institution from changes in interest
rates (interest rate risk), and also contributes
to the evaluation of liquidity. Thus, the
maturity and repricing information collected
throughout the Call Report also aids in
evaluating the strategies institutions take to
mitigate liquidity and interest rate risks.
Liquidity and interest rate risk indicators that
are calculated by agency models from an
institution’s Call Report data and exceed
specified parameters or change significantly
between examinations are red flags that call
for timely examiner off-site review.
In this regard, the reported amount of debt
securities with a remaining maturity of one
year or less is a key input into the calculation
of an institution’s short-term assets that,
when analyzed in conjunction with non-core
funding data, can indicate the extent to
which the institution is relying on short-term
funding to fund longer-term assets, which
presents an exposure to liquidity risk.
Further, liquidity risk inputs into agency
models that vary by type of security provide
examiners the ability to customize and apply
liquidity stress tests. Extensive back testing
has shown that the liquidity risk inputs for
securities contain substantial forward-
looking information by which to ascertain the
likelihood that an institution would be able
to avoid significant liquidity problems in a
stressed environment.
As another example, agency models that
consider both the amortized cost and fair
value of held-to-maturity and available-for-
sale securities reported in Schedule RC–B are
used for off-site monitoring of interest rate
risk to identify individual institutions that
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odels that
consider both the amortized cost and fair
value of held-to-maturity and available-for-
sale securities reported in Schedule RC–B are
used for off-site monitoring of interest rate
risk to identify individual institutions that
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may be significantly exposed to rising
interest rates. Individual types of securities
from Schedule RC–B are grouped into major
categories for purposes of performing
duration-based analyses of potential
investment portfolio depreciation for both
severe and more moderate interest rate
increases. The Schedule RC–B data for these
groupings of securities, together with Call
Report data for other types of balance sheet
assets and liabilities, also serve as inputs to
quarterly duration-based estimates of
potential changes in fair values for the
overall balance sheet in response to various
forecasted interest rate changes. Outlier
institutions identified by these models are
the subject of prompt supervisory follow-up
to address their interest rate risk exposure.
The institution’s risk profile in these areas
is considered during pre-examination
planning to determine the appropriate
scoping and staffing for examinations. For
example, the quarterly reporting of the Call
Report information on held-to-maturity and
available-for-sale securities also aids in the
identification of low-risk areas prior to on-
site examinations, allowing the agencies to
improve the allocation of their supervisory
resources and increase the efficiency of
supervisory assessments, which reduces the
scope of examinations in these areas, thereby
reducing regulatory burden
f the Call
Report information on held-to-maturity and
available-for-sale securities also aids in the
identification of low-risk areas prior to on-
site examinations, allowing the agencies to
improve the allocation of their supervisory
resources and increase the efficiency of
supervisory assessments, which reduces the
scope of examinations in these areas, thereby
reducing regulatory burden.
Information on the amortized cost and fair
value of the securities portfolio allows for
measurement of depreciation/appreciation,
which is important for assessing the potential
impact that unrealized gains and losses may
have on earnings and liquidity. Unrealized
gains and losses on available-for-sale equity
securities and, for certain institutions,
unrealized gains and losses on available-for-
sale debt securities are an integral input into
regulatory capital calculations. Furthermore,
because the amount of unrealized gains and
losses on both held-to-maturity and
available-for-sale debt securities is an
indicator of risk in the debt securities
portfolio, it also is a key factor in examiners’
qualitative assessments of capital adequacy.
Data showing significant depreciation in
specific types of securities not issued or
guaranteed by the U.S. government or its
agencies can signal an institution’s failure to
properly evaluate the existence of other-than-
temporary impairments arising from credit
losses and other factors. Similarly, data on
year-to-date sales and transfers of held-to-
maturity securities is a basis for off-site or on-
site follow-up by examiners to determine
whether the reasons for these transactions are
acceptable under U.S. GAAP or have resulted
in the tainting of this securities portfolio. In
addition, the reporting of debt securities by
security type is important to identify
concentrations in higher risk types of
investments, which may have greater
liquidity and/or credit risk than other types
of securities
ow-up by examiners to determine
whether the reasons for these transactions are
acceptable under U.S. GAAP or have resulted
in the tainting of this securities portfolio. In
addition, the reporting of debt securities by
security type is important to identify
concentrations in higher risk types of
investments, which may have greater
liquidity and/or credit risk than other types
of securities. Information on investments in
securities issued by states and political
subdivisions in the United States is used by
many state regulatory agencies as a starting
point for monitoring compliance with certain
state municipal investment regulations. The
amortized cost and fair value of held-to-
maturity and available-for-sale debt
securities, respectively, for certain types of
securities as well as the fair value of all U.S.
Treasury and Government agency securities
are used in the risk-based premium deposit
insurance pricing methodology for large
institutions and highly complex institutions.
Schedule RC–D (Trading Assets and
Liabilities) [FFIEC 031 and FFIEC 041 only]
Schedule RC–D collects information on
trading activity from institutions with more
than a limited amount of trading assets in
recent quarters. Trading assets are segmented
into detailed securities and loan categories.
Trading liabilities separately cover liability
for short positions and other trading
liabilities. The schedule’s Memorandum
items request additional information,
including the unpaid principal balance of
loans and the fair value of structured
financial products and asset-backed
securities held for trading purposes.
The information contained in Schedule
RC–D is used to assess the overall
composition of the institution’s trading
portfolio and also provides detailed
information to evaluate the liquidity, credit,
and interest rate risk within the trading
portfolio, which impacts the overall risk
profile of the institution. Data on the types
of trading assets held by an institution—such
as U.S
purposes.
The information contained in Schedule
RC–D is used to assess the overall
composition of the institution’s trading
portfolio and also provides detailed
information to evaluate the liquidity, credit,
and interest rate risk within the trading
portfolio, which impacts the overall risk
profile of the institution. Data on the types
of trading assets held by an institution—such
as U.S. Treasury securities versus structured
financial products versus commercial and
industrial loans, for example—serve as a
barometer of the relative levels of these risks
in the trading portfolio. Regarding liquidity
risk, the higher the level of more liquid assets
an institution has within its trading portfolio,
the more financial flexibility it has if faced
with uncertainties or unfavorable market
conditions. If an institution has a low level
of liquid assets within its trading portfolio,
this impacts its ability to rapidly adjust its
holdings in response to adverse market
movements. Information on the volume and
composition of trading assets and how it has
changed over recent quarters also can
provide insight into an institution’s trading
strategies and its views on market trends. The
assessment of trading portfolio composition
and risks enters into pre-examination
planning to determine the appropriate
scoping and staffing for examinations of
institutions engaged in trading activities.
Furthermore, data on securities and loans
held for trading are combined with data on
securities and loans held for investment, as
reported in Schedule RC–B and Schedule
RC–C, Part I, to benchmark weekly loan and
security data collected by the Board from a
sample of both small and large institutions.
These weekly data are used to estimate
weekly measures of extension of credit for
the banking sector as a whole to provide a
more timely input for purposes of monitoring
the macroeconomy
and loans held for investment, as
reported in Schedule RC–B and Schedule
RC–C, Part I, to benchmark weekly loan and
security data collected by the Board from a
sample of both small and large institutions.
These weekly data are used to estimate
weekly measures of extension of credit for
the banking sector as a whole to provide a
more timely input for purposes of monitoring
the macroeconomy.
Information on mortgage-backed securities
and mortgage loans held for trading assisted
the CFPB’s efforts to develop required
estimates for various Title XIV mortgage
reform rulemakings under the Dodd-Frank
Wall Street Reform and Consumer Protection
Act (Pub. L. 111–203). Going forward, data
items from this schedule and Schedules RC–
B and RC–C, Part I, are critical for continuous
monitoring of the mortgage market. The
CFPB uses these items to understand the
intricacies of the mortgage market that are
essential to assessing institutional
participation in regulated consumer financial
services markets and to assess regulatory
impact associated with recent and proposed
policies, as required by that agency’s
statutory mandate.
Schedule RC–K (Quarterly Averages)
Average quarterly asset and liability
information is essential to the ability of the
FFIEC member entities to more appropriately
evaluate the performance of individual
institutions. Quarterly average data from
Schedule RC–K also provide important
information at the industry level for policy
review at FFIEC member entities.
The average data reported in Schedule RC–
K are used in conjunction with income and
expense information from Schedule RI to
calculate yields and costs for the
corresponding categories of assets and
liabilities. These ratios are presented in the
Uniform Bank Performance Report (UBPR)
where they are used as a tool by examiners,
both on- and off-site, to monitor and evaluate
trends related to an institution’s earnings and
capital. These ratios also help the agencies
identify trends across the banking industry
to
calculate yields and costs for the
corresponding categories of assets and
liabilities. These ratios are presented in the
Uniform Bank Performance Report (UBPR)
where they are used as a tool by examiners,
both on- and off-site, to monitor and evaluate
trends related to an institution’s earnings and
capital. These ratios also help the agencies
identify trends across the banking industry.
Important ratios derived from quarterly
average data include, but are not limited to,
earnings ratios (e.g., return on average assets,
overhead ratio, and net interest margin) and
the leverage capital ratio.
The granularity of the data in Schedule
RC–K assists in analyzing performance
within a bank’s asset and liability portfolios.
Quarterly average balances allow for better
analyses of trends in the composition of an
institution’s assets and liabilities than is
possible from comparisons of quarter-end
data, which may be affected by fluctuations
related to seasonality or abnormal levels of
activity at period-end. The detailed average
data used to calculate the yield on specific
types of interest-earning assets helps
examination teams understand the impact of
credit quality on the earnings performance of
particular loan portfolios. Where an
institution’s yields on particular types of
loans exceed those of its peers, this warrants
examiner scrutiny to determine whether this
outcome is a result of the institution’s
origination or purchase of lower credit
quality loans. In addition, the data on the
cost of funds by funding type is important in
assessing the funding mix at the institution
level for oversight purposes. Higher costs for
particular types of deposits or other liabilities
compared to these costs at an institution’s
peers also warrants examiner review to
determine whether the institution is making
greater use of more volatile non-core funding
sources
ition, the data on the
cost of funds by funding type is important in
assessing the funding mix at the institution
level for oversight purposes. Higher costs for
particular types of deposits or other liabilities
compared to these costs at an institution’s
peers also warrants examiner review to
determine whether the institution is making
greater use of more volatile non-core funding
sources. The yield on interest-earning assets
and cost of funds also gives insight into the
effectiveness of an institution’s plans and
initiatives related to asset/liability mix,
liquidity, and interest rate risk strategies and
their resulting impact on earnings. These
performance ratios are essential to the
consideration of an institution’s earnings
during pre-examination planning to
determine the appropriate scoping of this
area, particularly because earnings is
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22 CAMELS is an acronym that represents the
ratings from six essential components of an
institution’s financial condition and operations:
Capital adequacy, asset quality, management,
earnings, liquidity, and sensitivity to market risk.
These components represent the primary areas
evaluated by examiners during examinations of
institutions.
evaluated and rated as part of the CAMELS
rating system.22
Schedule RC–L (Derivatives and Off-Balance-
Sheet Items)
Schedule RC–L provides data on off-
balance sheet assets and liabilities as well as
derivatives contracts. The quarterly reporting
of all off-balance sheet items in the Call
Report is required by law (12 U.S.C.
1831n(a)(3)(C))
examiners during examinations of
institutions.
evaluated and rated as part of the CAMELS
rating system.22
Schedule RC–L (Derivatives and Off-Balance-
Sheet Items)
Schedule RC–L provides data on off-
balance sheet assets and liabilities as well as
derivatives contracts. The quarterly reporting
of all off-balance sheet items in the Call
Report is required by law (12 U.S.C.
1831n(a)(3)(C)). The most recent financial
crisis emphasized the importance of
identifying and monitoring significant
exposures arising from any contingent or off-
balance sheet liabilities and the effect of
these exposures on an institution’s overall
risk profile. The granular data on
components of off-balance sheet items, as
well as derivatives data, assist the banking
agencies in ensuring the safety and
soundness of financial institutions through
both off-site and on-site monitoring of a
variety of potential risks. These risks include,
but are not limited to, liquidity risk, credit
risk, interest rate risk (IRR), and foreign
exchange risk. The data on Schedule RC–L
also is essential for the examination scoping
process, which begins during pre-
examination planning. The data offer insight
into outliers and exceptions, which provide
information to examiners on areas on which
to focus during their on-site examinations.
The data on Schedule RC–L on the FFIEC
031 and FFIEC 041 is useful in determining
an institution’s potential exposure to losses
from derivatives activities. It is also useful in
identifying the extent to which an institution
may be engaging in hedging strategies that
will affect its future earnings prospects. An
excessive and/or inappropriate credit
derivative position could have a substantial
and immediate detrimental impact to an
institution’s liquidity, interest rate risk,
earnings, or capital adequacy
o losses
from derivatives activities. It is also useful in
identifying the extent to which an institution
may be engaging in hedging strategies that
will affect its future earnings prospects. An
excessive and/or inappropriate credit
derivative position could have a substantial
and immediate detrimental impact to an
institution’s liquidity, interest rate risk,
earnings, or capital adequacy. For
institutions with material volumes of
derivatives as reported on Schedule RC–L,
examiners can assess whether the
institution’s management has the appropriate
expertise and policies in place to manage and
control the risks associated with its
derivatives activities and whether the
institution’s capital levels are commensurate
with its risk exposure. This is particularly
true with respect interest rate derivatives,
which are the most widely held derivatives,
and are commonly used in the management
of interest rate risk. Schedule RC–L provides
a granular perspective about the types of
interest rate contracts an institution has
entered into, which helps an examiner focus
on assessing how effectively management
uses the various types of interest rate
contracts in its derivatives portfolio to hedge
its exposure to interest rate risk. Also,
examiners investigate fluctuations in the fair
values of an institution’s holdings of
derivatives to determine if there are changes
in the institution’s risk appetite as set by the
board of directors and implemented by
management.
The unused commitments information on
Schedule RC–L is essential to examiners,
especially during periods of financial distress
when borrowers rely increasingly on drawing
down their lines of credit and unused
commitments as a source of funding
f
derivatives to determine if there are changes
in the institution’s risk appetite as set by the
board of directors and implemented by
management.
The unused commitments information on
Schedule RC–L is essential to examiners,
especially during periods of financial distress
when borrowers rely increasingly on drawing
down their lines of credit and unused
commitments as a source of funding. The
unused commitments data enables examiners
to identify whether growth in unused
commitments over time is at a manageable
level and permit assessments of the potential
impact, if such commitments are funded, on
the credit quality of the related loan
categories, as well as on the liquidity and on
the capital position of an institution. Also,
institutions may have a concentration in a
particular loan category, which may not be
readily apparent from balance sheet data
until unused commitments to borrowers in
this category are actually funded, which
dictates that examiners consider the reported
amounts on unused commitments by loan
category to ensure they identify and assess
the concentration risk. Financial and
performance standby letters of credit also
present liquidity and credit risk
considerations for examiners, which also
may be greater during periods of financial
distress when the counterparties may be
more likely to fail to perform as required
under the terms of the underlying contract.
The derivatives information on Schedule
RC–L is also one of the primary sources that
feeds into a derivatives quarterly report that
is used to report on bank trading and
derivative activities. This public report
issued by the OCC helps the banking
agencies’ on-site examiners at the largest
banks to continuously evaluate the credit,
market, operational, reputation, and
compliance risks of bank derivative
activities.
Schedule RC–M (Memoranda)
Schedule RC–M collects various types of
information. Section 7(k) of the Federal
Deposit Insurance Act (12 U.S.C
d
derivative activities. This public report
issued by the OCC helps the banking
agencies’ on-site examiners at the largest
banks to continuously evaluate the credit,
market, operational, reputation, and
compliance risks of bank derivative
activities.
Schedule RC–M (Memoranda)
Schedule RC–M collects various types of
information. Section 7(k) of the Federal
Deposit Insurance Act (12 U.S.C. 1817(k))
authorizes the federal banking agencies to
require the reporting and public disclosure of
information concerning extensions of credit
by an institution to its executive officers and
principal shareholders and their related
interests. Federal Reserve Board Regulation O
(12 CFR 215), which has been made
applicable to all institutions, imposes an
aggregate lending limit on extensions of
credit to insiders (executive officers,
directors, principal shareholders, and their
related interests) and, in general, requires an
institution to make available the names of its
executive officers and principal shareholders
to whom the institution had outstanding as
of the end of the latest previous quarter
aggregate extensions of credit that, when
aggregated with all other outstanding
extensions of credit to such person and their
related interests, equaled or exceeded the
lesser of 5 percent of capital and unimpaired
surplus or $500,000. The data collected in
Schedule RC–M on extensions of credit to the
reporting institution’s insiders generally
aligns with these requirements and assists
the agencies in monitoring compliance with
the insider lending regulations between
examinations and determining whether
supervisory follow-up is warranted when
material increases in insider lending are
identified.
Because identifiable intangible assets are
deducted from regulatory capital or are
subject to regulatory capital limits and
deducted amounts are not risk weighted, the
reporting of these amounts aids in validating
an institution’s regulatory capital
calculations in Schedule RC–R
ermining whether
supervisory follow-up is warranted when
material increases in insider lending are
identified.
Because identifiable intangible assets are
deducted from regulatory capital or are
subject to regulatory capital limits and
deducted amounts are not risk weighted, the
reporting of these amounts aids in validating
an institution’s regulatory capital
calculations in Schedule RC–R. In addition to
their treatment under the regulatory capital
rules, mortgage servicing assets in particular
are complex in nature and present liquidity
risk and interest rate risk and their value is
affected by the credit risk of the underlying
serviced assets. Mortgage servicing assets
also contribute to the level of an institution’s
mortgage prepayment exposure. When the
level of this exposure rises above a specified
benchmark at an individual institution, this
exposure may warrant additional attention by
examiners between examinations and
necessitate greater scrutiny of management’s
prepayment assumptions in its own interest
rate risk model during examinations or
visitations.
The components of other real estate owned
are needed to monitor asset quality trends at
individual institutions and industry-wide,
including when coupled with the past due
and nonaccrual data for loans secured by the
same type of property from Schedule RC–N.
The component information may provide
insight into the market conditions affecting
the segments of the real estate market in the
institution’s trade area, including possible
deteriorating conditions.
Maturity and repricing information on
other borrowed money, together with the
maturity and repricing information collected
in other schedules for other types of assets
and liabilities, is needed to evaluate liquidity
and interest rate risk to the institution, and
to aid in evaluating the strategies institutions
take to mitigate these risks
rea, including possible
deteriorating conditions.
Maturity and repricing information on
other borrowed money, together with the
maturity and repricing information collected
in other schedules for other types of assets
and liabilities, is needed to evaluate liquidity
and interest rate risk to the institution, and
to aid in evaluating the strategies institutions
take to mitigate these risks. Liquidity and
interest rate risk indicators that are
calculated by agency models from an
institution’s Call Report data and exceed
specified parameters or change significantly
between examinations are red flags that call
for timely examiner attention. Data on certain
secured liabilities also is used in the
assessment of institutions’ liquidity positions
because increases in the relative volume of
secured versus unsecured liabilities may
signal that an institution is encountering
difficulties in rolling over unsecured
borrowings due to deterioration in its
condition, which would call for supervisory
follow-up when identified between
examinations.
Information on mutual funds and
annuities, bank Web sites with transactional
capability, certain trustee and custodial
activities, and captive insurance subsidiaries,
is used to identify institutions engaged in
these activities, some of which are not typical
activities for community banks. If an
institution begins to report that it engages in
o
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