Proposed Revisions to the Consolidated Reports of Condition and Income (Call Report) for June 2018

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FDIC Financial Institution Letters › Proposed Revisions to the Consolidated Reports of Condition and Income (Call Report) for June 2018

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51908

Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices

Issued in Fort Worth, TX, on November 2,

2017.

Barbara L. Hall,

FAA Information Collection Clearance

Officer, Performance, Policy, and Records

Management Branch, ASP–110.

[FR Doc. 2017–24332 Filed 11–7–17; 8:45 am]

BILLING CODE 4910–13–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.

The Consolidated Reports of Condition

and Income are commonly referred to as

the Call Report.

The proposed revisions to the FFIEC

051, FFIEC 041, and FFIEC 031 Call

Reports would result in an overall

reduction in burden

, 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.

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 would delete or

consolidate a number of items and add

a new or raise certain existing reporting

thresholds. The proposed revisions

would take effect as of the June 30,

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 January 8, 2018.

ADDRESSES: Interested parties are

invited to submit written comments to

any or all of the agencies. All comments,

which should refer to the OMB control

number(s), will be shared among the

agencies.

OCC: You may submit comments,

which should refer to ‘‘FFIEC 031,

FFIEC 041, and FFIEC 051,’’ by any of

the following methods:

• Federal eRulemaking Portal: http://

www.regulations.gov. Follow the

instructions for submitting comments.

• Email: regs.comments@

occ.treas.gov.

• Fax: (571) 465–4326.

• Mail: Legislative and Regulatory

Activities Division, Office of the

Comptroller of the Currency, 400 7th

Street SW., Suite 3E–218, Washington,

DC 20219.

All comments received, including

attachments and other supporting

materials, are part of the public record

and subject to public disclosure

uctions for submitting comments.

• Email: regs.comments@

occ.treas.gov.

• Fax: (571) 465–4326.

• Mail: Legislative and Regulatory

Activities Division, Office of the

Comptroller of the Currency, 400 7th

Street SW., Suite 3E–218, Washington,

DC 20219.

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.

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.

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

ect 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. 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

/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)

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51909

Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices

1 Generally, institutions with domestic offices

only and total assets less than $1 billion.

2 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’’), 82 FR 2444 (January 9, 2017),

and 82 FR 29147 (June 27, 2017) (referred to

hereafter as the ‘‘June 2017 Call Report proposal’’)

for further information on the actions taken under

this initiative.

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,

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.

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:

1,307 national banks and federal savings

associations.

Estimated Average Burden per

Response: 46.05 burden hours per

quarter to file.

Estimated Total Annual Burden:

240,749 burden hours to file.

Board

OMB Control No.: 7100–0036.

Estimated Number of Respondents:

822 state member banks.

Estimated Average Burden per

Response: 50.16 burden hours per

quarter to file.

Estimated Total Annual Burden:

164,926 burden hours to file.

FDIC

OMB Control No.: 3064–0052

Burden per

Response: 46.05 burden hours per

quarter to file.

Estimated Total Annual Burden:

240,749 burden hours to file.

Board

OMB Control No.: 7100–0036.

Estimated Number of Respondents:

822 state member banks.

Estimated Average Burden per

Response: 50.16 burden hours per

quarter to file.

Estimated Total Annual Burden:

164,926 burden hours to file.

FDIC

OMB Control No.: 3064–0052.

Estimated Number of Respondents:

3,710 insured state nonmember banks

and state savings associations.

Estimated Average Burden per

Response: 44.14 burden hours per

quarter to file.

Estimated Total Annual Burden:

655,038 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, and the raising of certain

reporting thresholds.

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 for each agency.

When the estimates are calculated by

type of report across the agencies, the

estimated average burden hours per

quarter are 38.15 (FFIEC 051), 54.89

(FFIEC 041), and 122.50 (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 pursuant to 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

es 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 pursuant to 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 federally 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. 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

s 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; (3) the creation of a new

streamlined FFIEC 051 Call Report for

eligible small institutions 1 that took

effect as of the March 31, 2017, report

date; and (4) the publication for

comment in June 2017 of additional

proposed burden-reducing Call Report

changes, as well as proposed Call Report

revisions that address the definition of

‘‘past due’’ for regulatory reporting

purposes and changes in the accounting

for equity investments, all of which

have a proposed March 31, 2018,

effective date.2

As another key part of the FFIEC’s

Call Report burden-reduction initiative

for community banks, in 2015 the

agencies accelerated the start of the next

statutorily mandated review of the

existing Call Report data items (Full

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ective date.2

As another key part of the FFIEC’s

Call Report burden-reduction initiative

for community banks, in 2015 the

agencies accelerated the start of the next

statutorily mandated review of the

existing Call Report data items (Full

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51910

Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices

3 This review is mandated by section 604 of the

Financial Services Regulatory Relief Act of 2006 (12

U.S.C. 1817(a)(11)).

4 12 U.S.C. 1817(a)(11)(B).

5 A summary of the FFIEC member entities’ uses

of the data items retained in the Call Report

schedules covered by the first and second portions

of the agencies’ user surveys are included in

Appendix A of the agencies’ Federal Register

notices published on January 9, 2017 (82 FR 2444)

and June 27, 2017 (82 FR 29147), respectively.

Review),3 which otherwise would not

have commenced until 2017. After

completing this review, the agencies are

required to ‘‘reduce or eliminate any

requirement to file information or

schedules . . . (other than information

or schedules that are otherwise required

by law)’’ if the agencies determine that

‘‘the continued collection of such

information or schedules is no longer

necessary or appropriate.’’ 4 To provide

a foundation for the Full Review, 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

articipated 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 and

consistent with the statutory

requirements governing the Full

Review, the agencies have been

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 the third and

final portion of the user surveys and

other information, the agencies are

proposing various burden-reducing

changes in this proposal. The schedules

reviewed in the final portion of the user

surveys primarily include schedules

that collect data on complex or

specialized activities. A summary of the

FFIEC member entities’ uses of the data

items retained in the Call Report

schedules covered by this portion of the

user surveys is included in Appendix

A.5 Several of these schedules were not

included in the new FFIEC 051 when it

was created. Therefore, revisions

proposed in this notice 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

FFIEC 051 when it

was created. Therefore, revisions

proposed in this notice 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 federally 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 have been reviewed as part of

the Full Review, conducted through a

series of nine user surveys. The results

of the final 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

developing this proposal, the agencies

were cognizant of the comments and

feedback received from the industry,

over the course of this FFIEC initiative,

requesting that the agencies provide

relief from the burden of preparing Call

Reports. The proposed revisions to the

FFIEC 051, FFIEC 041, and FFIEC 031

are discussed in Sections III.A, III.B, and

III.C, respectively

to this proposal. In

developing this proposal, the agencies

were cognizant of the comments and

feedback received from the industry,

over the course of this FFIEC initiative,

requesting that the agencies provide

relief from the burden of preparing Call

Reports. The proposed revisions to the

FFIEC 051, FFIEC 041, and FFIEC 031

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–A—Changes in Bank

Equity Capital

• Schedule RI–C—Disaggregated Data

on the Allowance for Loan and Lease

Losses [FFIEC 031 and FFIEC 041

only]

• Schedule RC–A—Cash and Balances

Due from Depository Institutions

• Schedule RC–F—Other Assets

• Schedule RC–G—Other Liabilities

• Schedule RC–H—Selected Balance

Sheet Items for Domestic Offices

[FFIEC 031 only]

• Schedule RC–I—Assets and Liabilities

of IBFs [FFIEC 031 only]

• Schedule RC–P—1–4 Family

Residential Mortgage Banking

Activities (in Domestic Offices)

[FFIEC 031 and FFIEC 041 only]

• Schedule RC–Q—Assets and

Liabilities Measured at Fair Value on

a Recurring Basis [FFIEC 031 and

FFIEC 041 only]

• Schedule RC–S—Servicing,

Securitization, and Asset Sale

Activities [FFIEC 031 and FFIEC 041

only]

• Schedule RC–T—Fiduciary and

Related Services

• Schedule RC–V—Variable Interest

Entities [FFIEC 031 and FFIEC 041

only]

The schedules re-evaluated in the

development of this proposal include:

• Schedule RC–B—Securities

• Schedule RC–N—Past Due and

Nonaccrual Loans, Leases, and Other

Assets

• Schedule SU—Supplemental

Information [FFIEC 051 only]

Table 1 summarizes the changes

already finalized and implemented as

part of the FFIEC’s community bank

Call Report burden-reduction initiative

d FFIEC 041

only]

The schedules re-evaluated in the

development of this proposal include:

• Schedule RC–B—Securities

• Schedule RC–N—Past Due and

Nonaccrual Loans, Leases, and Other

Assets

• Schedule SU—Supplemental

Information [FFIEC 051 only]

Table 1 summarizes the changes

already finalized and implemented 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

Change in Item Frequency to Semiannual ..................................................................................

........................

Change in Item Frequency to Annual .........................................................................................

........................

Items with a New or Increased Reporting Threshold ..................................................................

........................

* ‘‘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.

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ule 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.

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51911

Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices

6 If this preprinted caption were removed and an

institution has retained interests in accrued interest

receivable related to securitized credit cards in an

amount in excess of the reporting threshold, the

institution would itemize and describe this

component in one of the subitems of item 6 without

a preprinted caption.

7 An institution does not meet the fiduciary

income test if its gross fiduciary and related

services income was less than or equal to 10 percent

of revenue (net interest income plus noninterest

income) for the preceding calendar year.

Table 2 summarizes the proposed

burden-reducing revisions to data items

included in the June 2017 Call Report

proposal that would take effect March

31, 2018.

TABLE 2—PROPOSED DATA REVISIONS IN JUNE 2017

Proposed call report revisions

051

041

031

Items Proposed to be Removed, Net * ........................................................................................

106

Proposed Change in Item Frequency to Semiannual .................................................................

Proposed Change in Item Frequency to Annual .........................................................................

Items with a Proposed New or Increased Reporting Threshold .................................................

106

178

* ‘‘Items Proposed to be Removed, Net’’ reflects the effects of consolidating existing items and relocating individual items to other schedules

Proposed Change in Item Frequency to Annual .........................................................................

Items with a Proposed New or Increased Reporting Threshold .................................................

106

178

* ‘‘Items Proposed to be Removed, Net’’ reflects the effects of consolidating existing items and relocating individual items to other schedules.

Table 3 summarizes the additional

proposed burden-reducing 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 3—PROPOSED DATA REVISIONS IN THIS NOTICE

Proposed call report revisions

051

041

031

Items Proposed to be Removed, Net * ........................................................................................

184

134

Items with a Proposed New or Increased Reporting Threshold .................................................

181

213

* ‘‘Items Proposed to be Removed, Net’’ reflects the effects of consolidating existing items and relocating individual items to other schedules.

The Call Report revisions that are the

subject of this proposal would take

effect June 30, 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 RC–A

The agencies propose to remove

Schedule RC–A, Cash and Balances Due

from Depository Institutions, in its

entirety from the FFIEC 051. This

schedule is currently completed by

institutions with $300 million or more

in total assets

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 RC–A

The agencies propose to remove

Schedule RC–A, Cash and Balances Due

from Depository Institutions, in its

entirety from the FFIEC 051. This

schedule is currently completed by

institutions with $300 million or more

in total assets. The agencies no longer

need the current level of detail provided

by the existing items in Schedule RC–

A from the smaller institutions eligible

to file this version of the Call Report

who are required to complete this

schedule, as sufficient information on

cash and due from balances is provided

for these institutions in Schedule RC,

items 1.a and 1.b.

Schedule RC–B

With respect to Schedule RC–B of the

FFIEC 051, the agencies propose to

consolidate the reporting of an

institution’s holdings of those

residential mortgage pass-through

securities that are currently reported in

items 4.a.(1) for those guaranteed by the

Government National Mortgage

Association (GNMA) and 4.a.(2) for

those issued by the Federal National

Mortgage Association (FNMA) and the

Federal Home Loan Mortgage

Corporation (FHLMC) into a single item

4.a.(1). Existing item 4.a.(3) for other

residential mortgage pass-through

securities would be renumbered as item

4.a.(2). The agencies no longer need the

current level of detail for these holdings

from the smaller institutions eligible to

file this version of the Call Report.

Schedule RC–F

With respect to Schedule RC–F of the

FFIEC 051, the agencies propose to

consolidate the reporting of an

institution’s interest-only strips

receivable, which are currently reported

in items 3.a for those on mortgage loans

and 3.b for those on other financial

assets, into a single item 3. The agencies

no longer need the current level of

detail for these holdings in the Call

Report

le RC–F

With respect to Schedule RC–F of the

FFIEC 051, the agencies propose to

consolidate the reporting of an

institution’s interest-only strips

receivable, which are currently reported

in items 3.a for those on mortgage loans

and 3.b for those on other financial

assets, into a single item 3. The agencies

no longer need the current level of

detail for these holdings in the Call

Report.

In addition, the agencies propose to

remove the preprinted caption for

retained interests in accrued interest

receivable related to securitized credit

cards (item 6.d) as few institutions

report having this component of other

assets in an amount in excess of the

existing reporting threshold for

disclosing this component.6 Items 6.e

through 6.k would be renumbered as

items 6.d through 6.j.

Schedule RC–T

With respect to Schedule RC–T of the

FFIEC 051, the agencies propose to

increase the reporting threshold for

reporting the components of fiduciary

and related services income. For

institutions with total fiduciary assets

greater than $100 million but less than

or equal to $250 million that do not

meet the fiduciary income test for

quarterly reporting,7 the agencies

propose to no longer require the

reporting of items 14 through 26. There

would be no change to the reporting

requirements applicable to items 14

through 26 for all other institutions. The

agencies no longer need the current

level of detail on fiduciary and related

services income from institutions with

less than $250 million in total fiduciary

assets that do not meet the fiduciary

income test.

In addition, the agencies propose to

add a reporting threshold for reporting

the number and market value of

collective investment funds and

common trust funds by type of fund in

Memorandum items 3.a through 3.g. For

institutions at which these funds have a

total market value of less than $1 billion

(as of the preceding December 31), the

agencies propose to no longer require

the reporting of Memorandum items 3.a

through 3.g

add a reporting threshold for reporting

the number and market value of

collective investment funds and

common trust funds by type of fund in

Memorandum items 3.a through 3.g. For

institutions at which these funds have a

total market value of less than $1 billion

(as of the preceding December 31), the

agencies propose to no longer require

the reporting of Memorandum items 3.a

through 3.g. Such institutions would

report only the total number and market

value of their collective investment

funds and common trust funds in

Memorandum item 3.h. Institutions at

which the total market value of their

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8 If this preprinted caption were removed and an

institution has retained interests in accrued interest

receivable related to securitized credit cards in an

amount in excess of the reporting threshold, the

institution would itemize and describe this

component in one of the subitems of item 6 without

a preprinted caption.

collective investment funds and

common trust funds is $1 billion or

more would continue to report

Memorandum items 3.a through 3.h.

The agencies no longer need the current

level of detail on collective investment

funds and common trust funds in the

Call Report from institutions at which

the total market value of these funds is

less than $1 billion.

Schedule SU

With respect to Schedule SU of the

FFIEC 051, the agencies propose to

remove item 8.e on the amount of

outstanding credit card fees and finance

charges included in credit card

receivables sold and securitized with

servicing retained or with recourse or

other seller-provided credit

enhancements, which is currently

applicable to eligible small institutions

that specialize in credit card lending

respect to Schedule SU of the

FFIEC 051, the agencies propose to

remove item 8.e on the amount of

outstanding credit card fees and finance

charges included in credit card

receivables sold and securitized with

servicing retained or with recourse or

other seller-provided credit

enhancements, which is currently

applicable to eligible small institutions

that specialize in credit card lending.

The agencies no longer need this

information from these smaller credit

card lending institutions.

B. Revisions to the FFIEC 041

Schedule RC–A

With respect to Schedule RC–A of the

FFIEC 041, the agencies propose to

consolidate the reporting of an

institution’s balances due from

depository institutions in the United

States, which are currently reported in

items 2.a for balances due from U.S.

branches and agencies of foreign banks

and 2.b for balances due from other

commercial banks and other depository

institutions in the United States, into a

single item 2. In addition, the agencies

propose to consolidate the reporting of

an institution’s balances due from banks

in foreign countries and foreign central

banks, which are currently reported in

items 3.a for balances due from foreign

branches of other U.S. banks and 3.b for

balances due from banks in foreign

countries and foreign central banks, into

a single item 3. The agencies no longer

need the current level of detail for these

balances in the Call Report.

Schedule RC–F

With respect to Schedule RC–F of the

FFIEC 041, the agencies propose to

consolidate the reporting of an

institution’s interest-only strips

receivable, which are currently reported

in items 3.a for those on mortgage loans

and 3.b for those on other financial

assets, into a single item 3. The agencies

no longer need the current level of

detail for these holdings in the Call

Report

le RC–F

With respect to Schedule RC–F of the

FFIEC 041, the agencies propose to

consolidate the reporting of an

institution’s interest-only strips

receivable, which are currently reported

in items 3.a for those on mortgage loans

and 3.b for those on other financial

assets, into a single item 3. The agencies

no longer need the current level of

detail for these holdings in the Call

Report.

In addition, the agencies propose to

remove the preprinted caption for

retained interests in accrued interest

receivable related to securitized credit

cards (item 6.d) as few institutions

report having this component of other

assets in an amount in excess of the

existing reporting threshold for

disclosing this component.8 Items 6.e

through 6.k would be renumbered as

items 6.d through 6.j.

Schedule RC–N

With respect to Schedule RC–N of the

FFIEC 041, the agencies propose to

remove the data items for reporting the

past due and nonaccrual status of the

fair value and unpaid principal balance

of held-for-investment loans measured

at fair value, which are currently

reported in Memorandum items 5.b.(1)

and 5.b.(2), columns A through C. The

agencies no longer need this current

level of detail in the Call Report. The

agencies would renumber Memorandum

item 5.a, ‘‘Loans and leases held for

sale,’’ as Memorandum item 5 for

columns A through C.

Schedule RC–P

With respect to Schedule RC–P of the

FFIEC 041, the agencies propose to

modify the reporting criteria for this

schedule by removing the current $1

billion asset-size threshold and applying

only the existing activity-based

threshold to all institutions, regardless

of size

Memorandum

item 5.a, ‘‘Loans and leases held for

sale,’’ as Memorandum item 5 for

columns A through C.

Schedule RC–P

With respect to Schedule RC–P of the

FFIEC 041, the agencies propose to

modify the reporting criteria for this

schedule by removing the current $1

billion asset-size threshold and applying

only the existing activity-based

threshold to all institutions, regardless

of size. As proposed, Schedule RC–P

would be completed by institutions

where any of the following residential

mortgage banking activities exceeds $10

million for two consecutive quarters:

• Closed-end and open-end first lien

and junior lien 1–4 family residential

mortgage loan originations and

purchases for resale from all sources

during a calendar quarter; or

• Closed-end and open-end first lien

and junior lien 1–4 family residential

mortgage loan sales during a calendar

quarter; or

• Closed-end and open-end first lien

and junior lien 1–4 family residential

mortgage loans held for sale or trading

at calendar quarter-end.

The agencies believe an activity-based

threshold alone is more appropriate

than an asset-size threshold for

determining which institutions should

file this schedule.

The agencies also propose to

consolidate the 1–4 family residential

mortgage banking activity detail

collected in this schedule for closed-end

loans and commitments under open-end

loans for retail originations (item 1),

wholesale originations and purchases

(item 2), mortgage loans sold (item 3),

mortgage loans held for sale or trading

(item 4), and repurchases and

indemnifications of mortgage loans

(item 6). Specifically, items 1.a, 1.b, and

1.c.(1) would be combined into new

item 1; items 2.a, 2.b, and 2.c.(1) would

be combined into new item 2; items 3.a,

3.b, and 3.c.(1) would be combined into

new item 3; items 4.a, 4.b, and 4.c.(1)

would be combined into new item 4;

and items 6.a, 6.b, and 6.c.(1) would be

combined into new item 6

purchases and

indemnifications of mortgage loans

(item 6). Specifically, items 1.a, 1.b, and

1.c.(1) would be combined into new

item 1; items 2.a, 2.b, and 2.c.(1) would

be combined into new item 2; items 3.a,

3.b, and 3.c.(1) would be combined into

new item 3; items 4.a, 4.b, and 4.c.(1)

would be combined into new item 4;

and items 6.a, 6.b, and 6.c.(1) would be

combined into new item 6. The agencies

also propose to consolidate noninterest

income from the sale, securitization,

and servicing of closed-end and open-

end 1–4 family residential mortgage

loans currently reported in items 5.a

and 5.b into a new item 5. In addition,

the agencies propose to remove detail

on the principal amount funded for

open-end loans extended under lines of

credit for each of the above listed

categories currently reported in items

1.c.(2), 2.c.(2), 3.c.(2), 4.c.(2), and 6.c.(2).

The agencies are proposing these

changes because they no longer need the

current level of detail on 1–4 family

residential mortgage banking activities

in the Call Report.

Schedule RC–Q

With respect to Schedule RC–Q of the

FFIEC 041, the agencies propose to

modify the reporting criteria for this

schedule by applying only an activity

threshold and not an asset-size

threshold, which currently is $500

million. As proposed, Schedule RC–Q

would be completed only by institutions

that (1) have elected to report financial

instruments or servicing assets and

liabilities at fair value under a fair value

option with changes in fair value

recognized in earnings, or (2) are

required to complete Schedule RC–D,

Trading Assets and Liabilities.

Institutions that do not meet either of

these criteria would no longer need to

complete this schedule, regardless of

asset size. The agencies believe the

activity thresholds are more appropriate

than the existing simple asset-size

threshold for determining which

institutions must complete this

schedule

nings, or (2) are

required to complete Schedule RC–D,

Trading Assets and Liabilities.

Institutions that do not meet either of

these criteria would no longer need to

complete this schedule, regardless of

asset size. The agencies believe the

activity thresholds are more appropriate

than the existing simple asset-size

threshold for determining which

institutions must complete this

schedule.

For loans held for investment and

held for sale measured at fair value

under a fair value option, the agencies

also propose to consolidate the detail on

the fair value and the unpaid principal

balance of such loans currently

collected in Memorandum items 3 and

4 of this schedule. For fair value option

loans secured by 1–4 family residential

properties, detail on revolving, open-

end loans secured by 1–4 family

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9 In the June 2017 Call Report proposal, the

agencies proposed comparable consolidation of the

detail on loans held for trading, which are

measured at fair value, and the unpaid principal

balance of such loans in Schedule RC–D.

10 An institution does not meet the fiduciary

income test if its gross fiduciary and related

services income was less than or equal to 10 percent

of revenue (net interest income plus noninterest

income) for the preceding calendar year.

residential properties and extended

under lines of credit; closed-end loans

secured by first liens on 1–4 family

residential properties; and closed-end

loans secured by junior liens on 1–4

family residential properties would be

consolidated into a single category

was less than or equal to 10 percent

of revenue (net interest income plus noninterest

income) for the preceding calendar year.

residential properties and extended

under lines of credit; closed-end loans

secured by first liens on 1–4 family

residential properties; and closed-end

loans secured by junior liens on 1–4

family residential properties would be

consolidated into a single category. For

fair value option loans secured by real

estate other than 1–4 family residential

properties, detail on construction, land

development, and other land loans;

loans secured by farmland; loans

secured by multifamily (5 or more)

residential properties; and loans secured

by nonfarm nonresidential properties

also would be consolidated into a single

category. For fair value option consumer

loans, detail on credit cards, other

revolving credit plans, automobile

loans, and other consumer loans would

be consolidated into a single category.

Specifically, existing Memorandum

items 3.a.(3)(a), 3.a.(3)(b)(1), and

3.a.(3)(b)(2) would be consolidated into

new Memorandum item 3.a.(1) for the

fair value of loans secured by 1–4 family

residential properties measured at fair

value, while existing Memorandum

items 3.a.(1), 3.a.(2), 3.a.(4), and 3.a.(5)

would be consolidated into new

Memorandum item 3.a.(2) for the fair

value of all other loans secured by real

estate measured at fair value. Existing

Memorandum items 3.c.(1) through

3.c.(4) would be consolidated into new

Memorandum item 3.c for the fair value

of all consumer loans measured at fair

value

t fair

value, while existing Memorandum

items 3.a.(1), 3.a.(2), 3.a.(4), and 3.a.(5)

would be consolidated into new

Memorandum item 3.a.(2) for the fair

value of all other loans secured by real

estate measured at fair value. Existing

Memorandum items 3.c.(1) through

3.c.(4) would be consolidated into new

Memorandum item 3.c for the fair value

of all consumer loans measured at fair

value. Similarly, existing Memorandum

items 4.a.(3)(a), 4.a.(3)(b)(1), and

4.a.(3)(b)(2) would be consolidated into

new Memorandum item 4.a.(1) for the

unpaid principal balance of loans

secured by 1–4 family residential

properties measured at fair value, while

existing Memorandum items 4.a.(1),

4.a.(2), 4.a.(4), and 4.a.(5) would be

consolidated into new Memorandum

item 4.a.(2) for the unpaid principal

balance of all other loans secured by

real estate measured at fair value.

Existing Memorandum items 4.c.(1)

through 4.c.(4) would be consolidated

into new Memorandum item 4.c for the

unpaid principal balance of all

consumer loans measured at fair value.9

In addition, the agencies propose to

remove the separate reporting of fair

value detail on federal funds sold and

securities purchased under agreements

to resell in item 2, which would instead

be included as part of all other assets in

item 6. The agencies also propose to

remove the separate reporting of fair

value detail for federal funds purchased

and securities sold under agreements to

repurchase in item 9, other borrowed

money in item 11, and subordinated

notes and debentures in item 12, with

these categories of liabilities instead

being reported within all other

liabilities in item 13. The agencies are

proposing these changes because they

no longer need the current level of

detail on loans measured at fair value

under a fair value option and on certain

other fair values in the Call Report from

institutions that file the FFIEC 041

dinated

notes and debentures in item 12, with

these categories of liabilities instead

being reported within all other

liabilities in item 13. The agencies are

proposing these changes because they

no longer need the current level of

detail on loans measured at fair value

under a fair value option and on certain

other fair values in the Call Report from

institutions that file the FFIEC 041.

Schedule RC–S

With respect to Schedule RC–S of the

FFIEC 041, the agencies propose the

following revisions to Schedule RC–S as

they no longer need the current level of

detail on securitization and asset sale

activities in the Call Report from

institutions that file the FFIEC 041:

(a) Consolidate columns B through F of

items 1 through 5 and items 9 through 12,

which collect information on certain

securitization and asset sale activities, into

existing column G. The activities covered in

columns B through F pertain to home equity

lines, credit card receivables, auto loans,

other consumer loans, and commercial and

industrial loans, respectively. The amounts

previously reported in columns B through F

would be included in column G, ‘‘All other

loans, all leases, and all other assets.’’

(b) Consolidate the maximum amount of

credit exposures arising from recourse or

other seller-provided credit enhancements in

the form of retained interest-only strips,

subordinated securities and other residual

interests, and standby letters of credit and

other enhancements, which are reported in

items 2.a, 2.b, and 2.c, respectively, into a

single new item 2.

commitments to provide liquidity to

structures reported in item 1 involving assets

sold and securitized by the reporting bank

with servicing retained or with recourse or

other seller-provided credit enhancements.

erests, and standby letters of credit and

other enhancements, which are reported in

items 2.a, 2.b, and 2.c, respectively, into a

single new item 2.

commitments to provide liquidity to

structures reported in item 1 involving assets

sold and securitized by the reporting bank

with servicing retained or with recourse or

other seller-provided credit enhancements.

(d) Consolidate ownership (or seller’s)

interests carried as securities and loans,

which are reported in items 6.a and 6.b,

respectively, into a single new item 6, and

consolidate columns B, C, and F, which

pertain to home equity lines, credit card

receivables, and commercial and industrial

loans, respectively, into column G. The

amounts previously reported in columns B,

C, and F would be included in the new item

6 in column G, ‘‘All other loans, all leases,

and all other assets.’’ The agencies also

propose to create a reporting threshold of $10

billion or more in total assets for reporting

this new combined item 6.

(e) Remove items 7.a and 7.b, which

contain loan amounts included in ownership

(or seller’s) interests carried as securities that

are 30–89 days past due and 90 days or more

past due, respectively.

(f) Remove items 8.a and 8.b, which

contain charge-offs and recoveries,

respectively, on loan amounts included in

the ownership (or seller’s) interests carried as

securities that are currently reported in item

6.a.

(g) Create a reporting threshold of $10

billion or more in total assets for reporting

item 10 on unused commitments to provide

liquidity to other institutions’ securitization

structures.

tems 8.a and 8.b, which

contain charge-offs and recoveries,

respectively, on loan amounts included in

the ownership (or seller’s) interests carried as

securities that are currently reported in item

6.a.

(g) Create a reporting threshold of $10

billion or more in total assets for reporting

item 10 on unused commitments to provide

liquidity to other institutions’ securitization

structures.

(h) Remove Memorandum items 1.a. and

1.b, which contain the outstanding principal

balance and the amount of retained recourse,

respectively, on small business obligations

transferred with recourse under Section 208

of the Riegle Community Development and

Regulatory Improvement Act of 1994. The

amounts previously reported in

Memorandum items 1.a and 1.b would be

included in items 1 and 2 or items 11 and

12 of column G depending on whether the

obligations that had been sold were

securitized or not securitized, respectively.

(i) Create a reporting threshold of $10

billion or more in total assets for reporting

detail on asset-backed commercial paper

(ABCP) conduits in Memorandum items

3.a.(1) through 3.b.(2), and the amount of

outstanding credit card fees and finance

charges included in credit card receivables

sold and securitized with servicing retained

or with recourse or other seller-provided

credit enhancements in Memorandum item 4.

To complete Memorandum item 4, an

institution with $10 billion or more in total

assets would also need to meet one of the

existing criteria for reporting this

information, i.e., the institution, together

with affiliated institutions, has outstanding

credit card receivables that exceed $500

million as of the report date, or the

institution is a credit card specialty bank as

defined for Uniform Bank Performance

Report (UBPR) purposes.

Schedule RC–T

With respect to Schedule RC–T of the

FFIEC 041, the agencies propose to

increase the reporting threshold for

reporting the components of fiduciary

and related services income

s outstanding

credit card receivables that exceed $500

million as of the report date, or the

institution is a credit card specialty bank as

defined for Uniform Bank Performance

Report (UBPR) purposes.

Schedule RC–T

With respect to Schedule RC–T of the

FFIEC 041, the agencies propose to

increase the reporting threshold for

reporting the components of fiduciary

and related services income. For

institutions with total fiduciary assets

greater than $100 million but less than

or equal to $250 million that do not

meet the fiduciary income test for

quarterly reporting,10 the agencies

propose to no longer require the

reporting of items 14 through 26. There

would be no change to the reporting

requirements applicable to items 14

through 26 for all other institutions. The

agencies no longer need the current

level of detail on fiduciary and related

services income from institutions with

less than $250 million in total fiduciary

assets that do not meet the fiduciary

income test.

In addition, the agencies propose to

add a reporting threshold for reporting

the number and market value of

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11 If this preprinted caption were removed and an

institution has retained interests in accrued interest

receivable related to securitized credit cards in an

amount in excess of the reporting threshold, the

institution would itemize and describe this

component in one of the subitems of item 6 without

a preprinted caption.

collective investment funds and

common trust funds by type of fund in

Memorandum items 3.a through 3.g. For

institutions at which these funds have a

total market value of less than $1 billion

(as of the preceding December 31), the

agencies propose to no longer require

the reporting of Memorandum items 3.a

through 3.g

omponent in one of the subitems of item 6 without

a preprinted caption.

collective investment funds and

common trust funds by type of fund in

Memorandum items 3.a through 3.g. For

institutions at which these funds have a

total market value of less than $1 billion

(as of the preceding December 31), the

agencies propose to no longer require

the reporting of Memorandum items 3.a

through 3.g. Such institutions would

report only the total number and market

value of their collective investment

funds and common trust funds in

Memorandum item 3.h. Institutions at

which the total market value of their

collective investment funds and

common trust funds is $1 billion or

more would continue to report

Memorandum items 3.a through 3.h.

The agencies no longer need the current

level of detail on collective investment

funds and common trust funds in the

Call Report from institutions at which

the total market value of these funds is

less than $1 billion.

Schedule RC–V

With respect to Schedule RC–V of the

FFIEC 041, the agencies propose to

consolidate information collected on

consolidated variable interest entities

(VIEs) used as ABCP conduits (column

B) and other VIEs (column C) for all

items into a single column B covering

all VIEs other than those used as

securitization vehicles (which will

continue to be reported in column A).

In lieu of the detailed breakdown of

assets and liabilities of ABCP conduit

VIEs currently reported in column B,

the agencies propose to collect data only

on the total assets and total liabilities of

such VIEs in new items 5 and 6,

respectively

items into a single column B covering

all VIEs other than those used as

securitization vehicles (which will

continue to be reported in column A).

In lieu of the detailed breakdown of

assets and liabilities of ABCP conduit

VIEs currently reported in column B,

the agencies propose to collect data only

on the total assets and total liabilities of

such VIEs in new items 5 and 6,

respectively. For these ABCP conduit

VIEs, the total assets item would

include the assets that can be used only

to settle these VIEs’ obligations, which

are currently reported in items 1.a

through 1.k, column B, and all other

assets of these VIEs, which are currently

reported in item 3, column B; the total

liabilities items would include these

VIEs’ liabilities for which creditors do

not have recourse to the general credit

of the reporting bank, which are

currently reported in items 2.a through

2.e, column B, and all other liabilities of

these VIEs, which are currently reported

in item 4, column B.

In the two columns of Schedule RC–

V that would remain, the agencies also

propose to consolidate the VIE

information on held-to-maturity and

available-for-sale securities in items 1.b

and 1.c, respectively, into a single new

item 1.b; loans and leases held for sale,

loans and leases held for investment,

and the allowance for loan and leases

losses in items 1.e through 1.g into a

single new item 1.c; and commercial

paper and other borrowed money in

items 2.c and 2.d, respectively, into a

single new item 2.a. In addition, the

agencies propose to remove the VIE

detail on securities purchased under

agreements to resell in item 1.d, trading

assets (other than derivatives) in item

1.h, and derivative trading assets in item

1.i. The data currently reported in these

items would be included in existing

item 1.k for other assets, which would

be renumbered as item 1.e

vely, into a

single new item 2.a. In addition, the

agencies propose to remove the VIE

detail on securities purchased under

agreements to resell in item 1.d, trading

assets (other than derivatives) in item

1.h, and derivative trading assets in item

1.i. The data currently reported in these

items would be included in existing

item 1.k for other assets, which would

be renumbered as item 1.e. The agencies

also propose to remove the VIE detail on

securities sold under agreements to

repurchase in item 2.a and derivative

trading liabilities in item 2.b; these

items would be included in existing

item 2.e for other liabilities, which

would be renumbered as item 2.b. The

agencies propose to consolidate and

remove these items because they no

longer need the current level of detail

on consolidated VIEs in the Call Report.

C. Revisions to the FFIEC 031

Schedule RC–A

With respect to Schedule RC–A of the

FFIEC 031, the agencies propose to

consolidate the reporting of an

institution’s balances due from

depository institutions in the United

States, which are currently reported for

the consolidated bank in items 2.a for

balances due from U.S. branches and

agencies of foreign banks and 2.b for

balances due from other commercial

banks and other depository institutions

in the United States, into a single item

2 in column A. In addition, the agencies

propose to consolidate the reporting of

an institution’s balances due from banks

in foreign countries and foreign central

banks, which are currently reported for

the consolidated bank in items 3.a for

balances due from foreign branches of

other U.S. banks and 3.b for balances

due from banks in foreign countries and

foreign central banks, into a single item

3 in column A. The agencies no longer

need the current level of detail for these

balances in the Call Report

nks

in foreign countries and foreign central

banks, which are currently reported for

the consolidated bank in items 3.a for

balances due from foreign branches of

other U.S. banks and 3.b for balances

due from banks in foreign countries and

foreign central banks, into a single item

3 in column A. The agencies no longer

need the current level of detail for these

balances in the Call Report.

Schedule RC–F

With respect to Schedule RC–F of the

FFIEC 031, the agencies propose to

consolidate the reporting of an

institution’s interest-only strips

receivable, which are currently reported

in items 3.a for those on mortgage loans

and 3.b for those on other financial

assets, into a single item 3. The agencies

no longer need the current level of

detail for these holdings in the Call

Report.

In addition, the agencies propose to

remove the preprinted caption for

retained interests in accrued interest

receivable related to securitized credit

cards (item 6.d) as few institutions

report having this component of other

assets in an amount in excess of the

existing reporting threshold for

disclosing this component.11 Items 6.e

through 6.k would be renumbered as

items 6.d through 6.j.

Schedule RC–H

With respect to Schedule RC–H of the

FFIEC 031, in connection with removing

the separate detail for loans held for

investment and held for sale in

domestic offices measured at fair value

under a fair value option from Schedule

RC–Q, the agencies propose to aggregate

all loans held for investment and held

for sale in domestic offices measured at

fair value under a fair value option that

are currently reported on Schedule RC–

Q, column B, Memorandum items

3.a.(1) through 3.d (including all

subitems), into a single new item,

Schedule RC–H, item 22. This item

would be completed by institutions that

from Schedule

RC–Q, the agencies propose to aggregate

all loans held for investment and held

for sale in domestic offices measured at

fair value under a fair value option that

are currently reported on Schedule RC–

Q, column B, Memorandum items

3.a.(1) through 3.d (including all

subitems), into a single new item,

Schedule RC–H, item 22. This item

would be completed by institutions that

(1) have elected to report financial

instruments or servicing assets and

liabilities at fair value under a fair value

option with changes in fair value

recognized in earnings, or (2) are

required to complete Schedule RC–D,

Trading Assets and Liabilities. The

agencies believe relocating this data

from Schedule RC–Q to Schedule RC–H

will improve efficiency by consolidating

additional domestic office information

on Schedule RC–H.

Schedule RC–N

With respect to Schedule RC–N of the

FFIEC 031, the agencies propose to

remove the data items for reporting the

past due and nonaccrual status of the

fair value and unpaid principal balance

of held-for-investment loans measured

at fair value, which are currently

reported in Memorandum items 5.b.(1)

and 5.b.(2), columns A through C. The

agencies no longer need this current

level of detail in the Call Report. The

agencies would renumber Memorandum

item 5.a, ‘‘Loans and leases held for

sale,’’ as Memorandum item 5 for

columns A through C.

Schedule RC–P

With respect to Schedule RC–P of the

FFIEC 031, the agencies propose to

modify the reporting criteria for this

schedule by removing the current $1

billion asset-size threshold and applying

only the existing activity-based

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Schedule RC–P

With respect to Schedule RC–P of the

FFIEC 031, the agencies propose to

modify the reporting criteria for this

schedule by removing the current $1

billion asset-size threshold and applying

only the existing activity-based

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Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices

12 The new Schedule RC–H item would be

completed only by institutions required to complete

Schedule RC–Q.

13 In the June 2017 Call Report proposal, the

agencies proposed comparable consolidation of the

detail on loans held for trading, which are

measured at fair value, and the unpaid principal

balance of such loans in Schedule RC–D.

threshold to all institutions, regardless

of size. As proposed, Schedule RC–P

would be completed by institutions

where any of the following residential

mortgage banking activities (in domestic

offices) exceeds $10 million for two

consecutive quarters:

• Closed-end and open-end first lien

and junior lien 1–4 family residential

mortgage loan originations and

purchases for resale from all sources

during a calendar quarter; or

• Closed-end and open-end first lien

and junior lien 1–4 family residential

mortgage loan sales during a calendar

quarter; or

• Closed-end and open-end first lien

and junior lien 1–4 family residential

mortgage loans held for sale or trading

at calendar quarter-end.

The agencies believe an activity-based

threshold alone is more appropriate

than an asset-size threshold for

determining which institutions should

file this schedule

unior lien 1–4 family residential

mortgage loan sales during a calendar

quarter; or

• Closed-end and open-end first lien

and junior lien 1–4 family residential

mortgage loans held for sale or trading

at calendar quarter-end.

The agencies believe an activity-based

threshold alone is more appropriate

than an asset-size threshold for

determining which institutions should

file this schedule.

The agencies also propose to

consolidate the 1–4 family residential

mortgage banking activity detail

collected in this schedule for closed-end

loans and commitments under open-end

loans for retail originations (item 1),

wholesale originations and purchases

(item 2), mortgage loans sold (item 3),

mortgage loans held for sale or trading

(item 4), and repurchases and

indemnifications of mortgage loans

(item 6). Specifically, items 1.a, 1.b, and

1.c.(1) would be combined into new

item 1; items 2.a, 2.b, and 2.c.(1) would

be combined into new item 2; items 3.a,

3.b, and 3.c.(1) would be combined into

new item 3; items 4.a, 4.b, and 4.c.(1)

would be combined into new item 4;

and, items 6.a, 6.b, and 6.c.(1) would be

combined into new item 6. The agencies

also propose to consolidate noninterest

income from the sale, securitization,

and servicing of closed-end and open-

end 1–4 family residential mortgage

loans currently reported in items 5.a

and 5.b into a new item 5. In addition,

the agencies propose to remove detail

on the principal amount funded for

open-end loans extended under lines of

credit for each of the above listed

categories currently reported in items

1.c.(2), 2.c.(2), 3.c.(2), 4.c.(2), and 6.c.(2).

The agencies are proposing these

changes because they no longer need the

current level of detail on 1–4 family

residential mortgage banking activities

in the Call Report

opose to remove detail

on the principal amount funded for

open-end loans extended under lines of

credit for each of the above listed

categories currently reported in items

1.c.(2), 2.c.(2), 3.c.(2), 4.c.(2), and 6.c.(2).

The agencies are proposing these

changes because they no longer need the

current level of detail on 1–4 family

residential mortgage banking activities

in the Call Report.

Schedule RC–Q

With respect to Schedule RC–Q of the

FFIEC 031, the agencies propose to

modify the reporting criteria for this

schedule by applying only an activity

threshold and not an asset-size

threshold, which currently is $500

million. As proposed, Schedule RC–Q

would be completed only by institutions

that (1) have elected to report financial

instruments or servicing assets and

liabilities at fair value under a fair value

option with changes in fair value

recognized in earnings, or (2) are

required to complete Schedule RC–D,

Trading Assets and Liabilities.

Institutions that do not meet either of

these criteria would no longer need to

complete this schedule, regardless of

asset size. The agencies believe the

activity thresholds are more appropriate

than the existing simple asset-size

threshold for determining which

institutions must complete this

schedule.

For loans held for investment and

held for sale measured at fair value

under a fair value option, the agencies

also propose to remove column B

(domestic offices) for the fair value and

the unpaid principal balance of such

loans currently collected in

Memorandum items 3 and 4 of this

schedule, respectively, and replace the

detailed data on fair value option loans

in domestic offices with a single new

item for the total amount of fair value

option loans that would be added to

Schedule RC–H, Selected Balance Sheet

Items for Domestic Offices.12 In

addition, the agencies would

consolidate certain existing loan

categories in Memorandum items 3 and

items 3 and 4 of this

schedule, respectively, and replace the

detailed data on fair value option loans

in domestic offices with a single new

item for the total amount of fair value

option loans that would be added to

Schedule RC–H, Selected Balance Sheet

Items for Domestic Offices.12 In

addition, the agencies would

consolidate certain existing loan

categories in Memorandum items 3 and

4. For fair value option loans secured by

1–4 family residential properties, detail

on revolving, open-end loans secured by

1–4 family residential properties and

extended under lines of credit; closed-

end loans secured by first liens on 1–4

family residential properties; and

closed-end loans secured by junior liens

on 1–4 family residential properties that

is currently reported for domestic

offices in column B would be

consolidated into a single category and

collected for the consolidated bank. For

fair value option loans secured by real

estate other than 1–4 family residential

properties, detail on construction, land

development, and other land loans;

loans secured by farmland; loans

secured by multifamily (5 or more)

residential properties; and loans secured

by nonfarm nonresidential properties

that is currently reported for domestic

offices in column B would be

consolidated into a single category and

collected for the consolidated bank.

These proposed revisions would replace

the existing items for total fair value

option loans secured by real estate for

the consolidated bank. For fair value

option consumer loans, detail for the

consolidated bank on credit cards, other

revolving credit plans, automobile

loans, and other consumer loans would

be consolidated into a single category.

Specifically, existing Memorandum

items 3.a and 4.a in column A for the

fair value and the unpaid principal

balance of the consolidated bank’s total

loans secured by real estate would be

removed

option consumer loans, detail for the

consolidated bank on credit cards, other

revolving credit plans, automobile

loans, and other consumer loans would

be consolidated into a single category.

Specifically, existing Memorandum

items 3.a and 4.a in column A for the

fair value and the unpaid principal

balance of the consolidated bank’s total

loans secured by real estate would be

removed. Existing Memorandum items

3.a.(3)(a), 3.a.(3)(b)(1), and 3.a.(3)(b)(2)

in column B would be consolidated into

new Memorandum item 3.a.(1) for the

fair value of the consolidated bank’s

loans secured by 1–4 family residential

properties measured at fair value, while

existing Memorandum items 3.a.(1),

3.a.(2), 3.a.(4), and 3.a.(5) in column B

would be consolidated into new

Memorandum item 3.a.(2) for the fair

value of all other loans secured by real

estate measured at fair value for the

consolidated bank. Existing

Memorandum items 3.c.(1) through

3.c.(4) for the consolidated bank would

be consolidated into new Memorandum

item 3.c for the fair value of all

consumer loans measured at fair value.

Similarly, existing Memorandum items

4.a.(3)(a), 4.a.(3)(b)(1), and 4.a.(3)(b)(2)

in column B would be consolidated into

new Memorandum item 4.a.(1) for the

unpaid principal balance of the

consolidated bank’s loans secured by 1–

4 family residential properties measured

at fair value, while existing

Memorandum items 4.a.(1), 4.a.(2),

4.a.(4), and 4.a.(5) in column B would

be consolidated into new Memorandum

item 4.a.(2) for unpaid principal balance

of all other loans secured by real estate

measured at fair value for the

consolidated bank

the

unpaid principal balance of the

consolidated bank’s loans secured by 1–

4 family residential properties measured

at fair value, while existing

Memorandum items 4.a.(1), 4.a.(2),

4.a.(4), and 4.a.(5) in column B would

be consolidated into new Memorandum

item 4.a.(2) for unpaid principal balance

of all other loans secured by real estate

measured at fair value for the

consolidated bank. Existing

Memorandum items 4.c.(1) through

4.c.(4) for the consolidated bank would

be consolidated into new Memorandum

item 4.c for unpaid principal balance of

all consumer loans measured at fair

value.13 The agencies are proposing

these changes because they no longer

need the current level of detail on loans

measured at fair value under a fair value

option in the Call Report from

institutions that file the FFIEC 031.

Schedule RC–S

With respect to Schedule RC–S of the

FFIEC 031, the agencies propose the

following revisions to Schedule RC–S,

as they no longer need the current level

of detail on securitization and asset sale

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51916

Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices

14 An institution does not meet the fiduciary

income test if its gross fiduciary and related

services income was less than or equal to 10 percent

of revenue (net interest income plus noninterest

income) for the preceding calendar year.

activities in the Call Report from

institutions that file the FFIEC 031:

(a) Consolidate the maximum amount of

credit exposures arising from recourse or

other seller-provided credit enhancements in

the form of retained interest-only strips,

subordinated securities and other residual

interests, and standby letters of credit and

other enhancements, which are reported in

items 2.a, 2.b, and 2.c, respectively, into a

single new item 2.

ns that file the FFIEC 031:

(a) Consolidate the maximum amount of

credit exposures arising from recourse or

other seller-provided credit enhancements in

the form of retained interest-only strips,

subordinated securities and other residual

interests, and standby letters of credit and

other enhancements, which are reported in

items 2.a, 2.b, and 2.c, respectively, into a

single new item 2.

(b) Create a reporting threshold of $100

billion or more in total assets for item 3,

which is used for reporting unused

commitments to provide liquidity to

structures reported in item 1 involving assets

sold and securitized by the reporting bank

with servicing retained or with recourse or

other seller-provided credit enhancements.

interests carried as securities and loans,

which are reported in items 6.a and 6.b,

respectively, into a single new item 6. The

agencies also propose to create a reporting

threshold of $10 billion or more in total

assets for reporting this new combined item

(d) Remove items 7.a and 7.b, which

contain loan amounts included in ownership

(or seller’s) interests carried as securities that

are 30–89 days past due and 90 days or more

past due, respectively.

(e) Remove items 8.a and 8.b, which

contain charge-offs and recoveries,

respectively, on loan amounts included in

the ownership (or seller’s) interests carried as

securities that are currently reported in item

6.a.

d 7.b, which

contain loan amounts included in ownership

(or seller’s) interests carried as securities that

are 30–89 days past due and 90 days or more

past due, respectively.

(e) Remove items 8.a and 8.b, which

contain charge-offs and recoveries,

respectively, on loan amounts included in

the ownership (or seller’s) interests carried as

securities that are currently reported in item

6.a.

(f) Consolidate columns B and C of item 9,

which contain the maximum amount of

credit exposure arising from credit

enhancements in the form of standby letters

of credit, purchased subordinated securities,

and other enhancements provided by the

reporting institution to other institutions’

securitization structures, into existing

column G. The activities covered in columns

B and C pertain to home equity lines and

credit card receivables, respectively. The

amounts previously reported in columns B

and C would be included in column G, ‘‘All

other loans, all leases, and all other assets.’’

(g) Create a reporting threshold of $10

billion or more in total assets for reporting

unused commitments to provide liquidity to

other institutions’ securitization structures in

item 10. The agencies also propose to

consolidate columns B and C of item 10 into

existing column G. The activities covered in

columns B and C pertain to home equity

lines and credit card receivables,

respectively. The amounts previously

reported in columns B and C by institutions

with $10 billion or more in total assets would

be included in column G, ‘‘All other loans,

all leases, and all other assets.’’

ies also propose to

consolidate columns B and C of item 10 into

existing column G. The activities covered in

columns B and C pertain to home equity

lines and credit card receivables,

respectively. The amounts previously

reported in columns B and C by institutions

with $10 billion or more in total assets would

be included in column G, ‘‘All other loans,

all leases, and all other assets.’’

(h) Consolidate columns B through F of

item 11, which contain assets sold with

recourse or other seller-provided credit

enhancements and not securitized, into

existing column G. The activities covered in

columns B through F pertain to home equity

lines, credit card receivables, auto loans,

other consumer loans, and commercial and

industrial loans, respectively. The amounts

previously reported in columns B through F

would be included in column G, ‘‘All other

loans, all leases, and all other assets.’’

(i) Consolidate columns B through F of

item 12, which contain the maximum

amount of credit exposure arising from

recourse or other seller-provided credit

enhancements on assets sold with recourse or

other seller-provided credit enhancements

and not securitized, into existing column G.

The activities covered in columns B through

F pertain to home equity lines, credit card

receivables, auto loans, other consumer

loans, and commercial and industrial loans,

respectively. The amounts previously

reported in columns B through F would be

included in column G, ‘‘All other loans, all

leases, and all other assets.’’

redit enhancements

and not securitized, into existing column G.

The activities covered in columns B through

F pertain to home equity lines, credit card

receivables, auto loans, other consumer

loans, and commercial and industrial loans,

respectively. The amounts previously

reported in columns B through F would be

included in column G, ‘‘All other loans, all

leases, and all other assets.’’

(j) Remove Memorandum items 1.a. and 1.b

which contain the outstanding principal

balance and the amount of retained recourse,

respectively, on small business obligations

transferred with recourse under Section 208

of the Riegle Community Development and

Regulatory Improvement Act of 1994. The

amounts previously reported in these two

memorandum items would be included in

items 1 and 2 (column F) or items 11 and 12

(column G) depending on whether the

obligations that had been sold were

securitized or not securitized, respectively.

(k) Create a reporting threshold of $10

billion or more in total assets for reporting

detail on ABCP conduits in Memorandum

items 3.a.(1) through 3.b.(2), and the amount

of outstanding credit card fees and finance

charges included in credit card receivables

sold and securitized with servicing retained

or with recourse or other seller-provided

credit enhancements in Memorandum item 4.

To complete Memorandum item 4, an

institution with $10 billion or more in total

assets would also need to meet one of the

existing criteria for reporting this

information, i.e., the institution, together

with affiliated institutions, has outstanding

credit card receivables that exceed $500

million as of the report date, or the

institution is a credit card specialty bank as

defined for UBPR purposes.

Schedule RC–T

With respect to Schedule RC–T of the

FFIEC 031, the agencies propose to

increase the reporting threshold for

reporting the components of fiduciary

and related services income

with affiliated institutions, has outstanding

credit card receivables that exceed $500

million as of the report date, or the

institution is a credit card specialty bank as

defined for UBPR purposes.

Schedule RC–T

With respect to Schedule RC–T of the

FFIEC 031, the agencies propose to

increase the reporting threshold for

reporting the components of fiduciary

and related services income. For

institutions with total fiduciary assets

greater than $100 million but less than

or equal to $250 million that do not

meet the fiduciary income test for

quarterly reporting,14 the agencies

propose to no longer require the

reporting of items 14 through 26. There

would be no change to the reporting

requirements applicable to items 14

through 26 for all other institutions. The

agencies no longer need the current

level of detail on fiduciary and related

services income from institutions with

less than $250 million in total fiduciary

assets that do not meet the fiduciary

income test.

In addition, the agencies propose to

add a reporting threshold for reporting

the number and market value of

collective investment funds and

common trust funds by type of fund in

Memorandum items 3.a through 3.g. For

institutions at which these funds have a

total market value of less than $1 billion

(as of the preceding December 31), the

agencies propose to no longer require

the reporting of Memorandum items 3.a

through 3.g. Such institutions would

report only the total number and market

value of their collective investment

funds and common trust funds in

Memorandum item 3.h. Institutions at

which the total market value of their

collective investment funds and

common trust funds is $1 billion or

more would continue to report

Memorandum items 3.a through 3.h.

The agencies no longer need the current

level of detail on collective investment

funds and common trust funds in the

Call Report from institutions at which

the total market value of these funds is

less than $1 billion

which the total market value of their

collective investment funds and

common trust funds is $1 billion or

more would continue to report

Memorandum items 3.a through 3.h.

The agencies no longer need the current

level of detail on collective investment

funds and common trust funds in the

Call Report from institutions at which

the total market value of these funds is

less than $1 billion.

Schedule RC–V

With respect to Schedule RC–V of the

FFIEC 031, the agencies propose to

consolidate information collected on

consolidated VIEs used as ABCP

conduits (column B) and other VIEs

(column C) for all items into a single

column B covering all VIEs other than

those used as securitization vehicles

(which will continue to be reported in

column A). In lieu of the detailed

breakdown of assets and liabilities of

ABCP conduit VIEs currently reported

in column B, the agencies propose to

collect data on the total assets and total

liabilities of such VIEs in new items 5

and 6, respectively. For these ABCP

conduit VIEs, the total assets item

would include the assets that can be

used only to settle these VIEs’

obligations, which are currently

reported in items 1.a through 1.k,

column B, and all other assets of these

VIEs, which are currently reported in

item 3, column B; the total liabilities

items would include these VIEs’

liabilities for which creditors do not

have recourse to the general credit of the

reporting bank, which are currently

reported in items 2.a through 2.e,

column B, and all other liabilities of

these VIEs, which are currently reported

in item 4, column B.

In the two columns of Schedule RC–

V that would remain, the agencies also

propose to consolidate the VIE

information on held-to-maturity and

available-for-sale securities in items 1.b

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Es, which are currently reported

in item 4, column B.

In the two columns of Schedule RC–

V that would remain, the agencies also

propose to consolidate the VIE

information on held-to-maturity and

available-for-sale securities in items 1.b

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15 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.

and 1.c into a single new item 1.b; loans

and leases held for sale, loans and leases

held for investment, and the allowance

for loan and leases losses in items 1.e

through 1.g into a single new item 1.c;

and commercial paper and other

borrowed money in items 2.c and 2.d

into a single new item 2.a. In addition,

the agencies propose to remove the VIE

detail on securities purchased under

agreements to resell in item 1.d, trading

assets (other than derivatives) in item

1.h, and derivative trading assets in item

1.i. The data currently reported in these

items would be included in existing

item 1.k for other assets, which would

be renumbered as item 1.e. The agencies

also propose to remove the VIE detail on

securities sold under agreements to

repurchase in item 2.a and derivative

trading liabilities in item 2.b; these

items would be included in existing

item 2.e for other liabilities, which

would be renumbered as item 2.b. The

agencies propose to consolidate and

remove these items because they no

longer need the current level of detail

on consolidated VIEs in the Call Report.

detail on

securities sold under agreements to

repurchase in item 2.a and derivative

trading liabilities in item 2.b; these

items would be included in existing

item 2.e for other liabilities, which

would be renumbered as item 2.b. The

agencies propose to consolidate and

remove these items because they no

longer need the current level of detail

on consolidated VIEs in the Call Report.

IV. Timing

The agencies propose to make the

changes in this notice effective

beginning with the June 30, 2018, Call

Report. The agencies invite comment on

any difficulties that institutions would

expect to encounter in implementing

the systems and process changes

necessary to accommodate the proposed

revisions to the FFIEC 051, FFIEC 041,

and FFIEC 031 as of this proposed

effective date.

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 the proposed revisions to

the collections of information that are

the subject of this notice are necessary

for the proper performance of the

agencies’ functions, including whether

the information has practical utility;

(b) The accuracy of the agencies’

estimates of the burden of the

information collections as they are

proposed to be revised, including the

validity of the methodology and

assumptions used;

utility, and clarity of the information to

be collected;

(d) Ways to minimize the burden of

information collections on respondents,

including through the use of automated

collection techniques or other forms of

information technology; and

tion collections as they are

proposed to be revised, including the

validity of the methodology and

assumptions used;

utility, and clarity of the information to

be collected;

(d) Ways to minimize the burden of

information collections on respondents,

including through the use of automated

collection techniques or other forms of

information technology; and

(e) Estimates of capital or start-up

costs and costs of operation,

maintenance, and purchase of services

to provide information.

Comments submitted in response to

this joint notice will be shared among

the agencies. 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–A (Changes in Bank Equity

Capital)

Schedule RI–A collects detailed

information about specified categories of

changes in an institution’s equity capital

during the calendar year to date. In general,

these categories are aligned with categories

typically reported on a basic statement of

changes in equity in a set of financial

statements prepared under U.S. generally

accepted accounting principles (GAAP).

The FFIEC member entities’ examiners use

the Schedule RI–A information in their off-

site reviews to identify and understand the

sources of any significant changes in an

institution’s capital accounts. Information on

dividends declared as a percentage of net

income reveals the extent to which capital is

being augmented through earnings retention,

which is the principal source of capital for

most institutions. The banking agencies may

be aware of some capital transactions

reported in Schedule RI–A due to licensing

requirements

any significant changes in an

institution’s capital accounts. Information on

dividends declared as a percentage of net

income reveals the extent to which capital is

being augmented through earnings retention,

which is the principal source of capital for

most institutions. The banking agencies may

be aware of some capital transactions

reported in Schedule RI–A due to licensing

requirements. However, for many other

transactions directly affecting capital such as

dividends declared and transactions with a

parent holding company, Schedule RI–A may

be the only source of information on changes

in capital aside from an on-site examination.

Even for capital transactions that require

prior agency approval, the information

reported in Schedule RI–A serves as

confirmation that the institution successfully

completed the transaction (such as issuing

new stock or redeeming existing preferred

stock). The agencies also use the information

on this schedule as a starting point for

reviewing compliance with statutory or

regulatory restrictions on dividends or

holding company transactions.

The FDIC uses data items from Schedule

RI–A in its estimates of losses from failures

of insured depository institutions, which

affects the FDIC’s loss reserve and the

resulting level of the balance in the Deposit

Insurance Fund.

Schedule RI–C (Disaggregated Data on the

Allowance for Loan and Lease Losses) [FFIEC

031 and FFIEC 041 only]

Schedule RI–C provides information on the

components of the allowance for loan and

lease losses (ALLL) by loan category

disaggregated on the basis of a reporting

institution’s impairment measurement

method and the related recorded investment

in loans (and, as applicable, leases) held for

investment for institutions with $1 billion or