# FDIC FIL-108-2020: Interagency Interim Final Rule Provides Regulatory Relief to Institutions Experiencing Temporary Asset Growth in Connection with COVID-19-Related Programs

> Federal · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/FDIC_FIL20108

## Section

- **Citation:** FDIC FIL-108-2020
- **Heading:** Interagency Interim Final Rule Provides Regulatory Relief to Institutions Experiencing Temporary Asset Growth in Connection with COVID-19-Related Programs
- **Jurisdiction:** Federal
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** FDIC Financial Institution Letters / Interagency Interim Final Rule Provides Regulatory Relief to Institutions Experiencing Temporary Asset Growth in Connection with COVID-19-Related Programs

## Text

This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations
Federal Register
77345
Vol. 85, No. 232
Wednesday, December 2, 2020
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 3, 4, and 52
[Docket ID OCC–2020–0044]
RIN 1557–AF06
FEDERAL RESERVE SYSTEM
12 CFR Parts 208, 211, 212, 217, 225,
235, and 238
[Docket No. R–1731]
RIN 7100–AG01
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 304, 324, 337, 347, and
348
RIN 3064–AF67
Temporary Asset Thresholds
AGENCY: Office of the Comptroller of the
Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Interim final rule, request for
public comment.
SUMMARY: To mitigate temporary
transition costs on banking
organizations related to the coronavirus
disease 2019 (COVID event), the OCC,
Board, and the FDIC (together, the
agencies) are issuing an interim final
rule to permit national banks, savings
associations, state banks, bank holding
companies, savings and loan holding
companies, and U.S. branches and
agencies of foreign banking
organizations with under $10 billion in
total assets as of December 31, 2019,
(community banking organizations) to
use asset data as of December 31, 2019,
in order to determine the applicability
of various regulatory asset thresholds
during calendar years 2020 and 2021.
For the same reasons, the Board is
temporarily revising the instructions to
a number of its regulatory reports to
provide that community banking
organizations may use asset data as of
December 31, 2019, in order to
determine reporting requirements for
reports due in calendar years 2020 or
2021
the applicability
of various regulatory asset thresholds
during calendar years 2020 and 2021.
For the same reasons, the Board is
temporarily revising the instructions to
a number of its regulatory reports to
provide that community banking
organizations may use asset data as of
December 31, 2019, in order to
determine reporting requirements for
reports due in calendar years 2020 or
2021.
DATES:
Effective date: This rule is effective on
December 2, 2020.
Comment date: Comments must be
received on or before February 1, 2021.
ADDRESSES: Comments should be
directed to:
OCC: You may submit comments to
the OCC by any of the methods set forth
below. Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal, if possible. Please
use the title ‘‘Temporary Asset
Thresholds’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
Regulations.gov Classic or
Regulations.gov Beta.
Regulations.gov Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0044’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments. For
help with submitting effective
comments, please click on ‘‘View
Commenter’s Checklist.’’ Click on the
‘‘Help’’ tab on the Regulations.gov home
page to get information on using
Regulations.gov, including instructions
for submitting public comments.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov classic homepage. Enter
‘‘Docket ID OCC–2020–0044’’ in the
Search Box and click ‘‘Search.’’ Public
comments can be submitted via the
‘‘Comment’’ box below the displayed
document information or click on the
document title and click the
‘‘Comment’’ box on the top-left side of
the screen
o to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov classic homepage. Enter
‘‘Docket ID OCC–2020–0044’’ in the
Search Box and click ‘‘Search.’’ Public
comments can be submitted via the
‘‘Comment’’ box below the displayed
document information or click on the
document title and click the
‘‘Comment’’ box on the top-left side of
the screen. For help with submitting
effective comments, please click on
‘‘Commenter’s Checklist.’’ For
assistance with the Regulations.gov Beta
site, please call (877) 378–5457 (toll
free) or (703) 454–9859 Monday–Friday,
9 a.m.–5 p.m. ET or email to
regulations@erulemakinghelpdesk.com.
• Mail: Chief Counsel’s Office, Attn:
Comment Processing, Office of the
Comptroller of the Currency, 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2020–0044’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website without
change, including any business or
personal information provided such as
name and address information, email
addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by the following
methods:
• Regulations.gov Classic or
Regulations.gov Beta:
Regulations.gov Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0044’’ in the Search box and
click ‘‘Search.’’ Click on ‘‘Open Docket
Folder’’ on the right side of the screen
or public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by the following
methods:
• Regulations.gov Classic or
Regulations.gov Beta:
Regulations.gov Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0044’’ in the Search box and
click ‘‘Search.’’ Click on ‘‘Open Docket
Folder’’ on the right side of the screen.
Comments and supporting materials can
be viewed and filtered by clicking on
‘‘View all documents and comments in
this docket’’ and then using the filtering
tools on the left side of the screen. Click
on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov classic homepage. Enter
‘‘Docket ID OCC 2020–0044’’ in the
Search Box and click ‘‘Search.’’ Click on
the ‘‘Comments’’ tab. Comments can be
viewed and filtered by clicking on the
‘‘Sort By’’ drop-down on the right side
of the screen or the ‘‘Refine Results’’
options on the left side of the screen.
Supporting Materials can be viewed by
clicking on the ‘‘Documents’’ tab and
filtered by clicking on the ‘‘Sort By’’
drop-down on the right side of the
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n the
‘‘Sort By’’ drop-down on the right side
of the screen or the ‘‘Refine Results’’
options on the left side of the screen.
Supporting Materials can be viewed by
clicking on the ‘‘Documents’’ tab and
filtered by clicking on the ‘‘Sort By’’
drop-down on the right side of the
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77346
Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations
1 See ‘‘Supervisory and Regulatory Actions in
Response to COVID–19,’’ available at https://
www.federalreserve.gov/supervisory-regulatory-
action-response-covid-19.htm.; ‘‘COVID–19
(Coronavirus),’’ available at https://occ.gov/topics/
supervision-and-examination/bank-operations/
covid-19-information/convid-19-info-index.html;
‘‘Coronavirus (COVID–19) Information for Bankers
and Consumers,’’ available at https://www.fdic.gov/
coronavirus/. See also ‘‘The FDIC Approves Interim
Final Rule to Provide Temporary Relief from Part
363 Audit and Reporting Requirements,’’ available
at https://www.fdic.gov/news/financial-institution-
letters/2020/fil20099.html and Final Rule
Mitigating the Deposit Insurance Assessment Effect
of Participation in the Paycheck Protection Program
(PPP), the PPP Liquidity Facility, and the Money
Market Mutual Fund Liquidity Facility at https://
www.fdic.gov/news/financial-institution-letters/
2020/fil20063.html.
2 The SBA’s PPP was created under the
Coronavirus Aid, Relief, and Economic Security Act
(CARES Act) in response to market distress caused
by the COVID–19 event. Public Law 116–136, 134
Stat. 281.
3 ‘‘Revised Interagency Statement on Loan
Modifications by Financial Institutions Working
with Customers Affected by the Coronavirus’’ (Apr.
7, 2020), available at https://www.occ.gov/news-
issuances/news-releases/2020/nr-ia-2020-50a.pdf
navirus Aid, Relief, and Economic Security Act
(CARES Act) in response to market distress caused
by the COVID–19 event. Public Law 116–136, 134
Stat. 281.
3 ‘‘Revised Interagency Statement on Loan
Modifications by Financial Institutions Working
with Customers Affected by the Coronavirus’’ (Apr.
7, 2020), available at https://www.occ.gov/news-
issuances/news-releases/2020/nr-ia-2020-50a.pdf.
4 Data derived from the Consolidated Reports of
Condition and Income (Call Report) and Financial
screen or the ‘‘Refine Results’’ options
on the left side of the screen. For
assistance with the Regulations.gov Beta
site please call (877) 378–5457 (toll free)
or (703) 454–9859 Monday–Friday, 9
a.m.–5 p.m. ET or email regulations@
erulemakinghelpdesk.com. The docket
may be viewed after the close of the
comment period in the same manner as
during the comment period.
Board: You may submit comments,
identified by Docket No. R–1731 and
RIN No. 7100–AG01, by any of the
following methods:
• Agency Web Site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• E-mail: regs.comments@
federalreserve.gov. Include docket
number and RIN 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 website at http://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons or
to remove sensitive PII at the
commenter’s request. Public comments
may also be viewed electronically or in
paper form in Room 146, 1709 New
York Avenue NW, Washington, DC
20006, between 9:00 a.m. and 5:00 p.m.
on weekdays
ents are available
from the Board’s website at http://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons or
to remove sensitive PII at the
commenter’s request. Public comments
may also be viewed electronically or in
paper form in Room 146, 1709 New
York Avenue NW, Washington, DC
20006, between 9:00 a.m. and 5:00 p.m.
on weekdays.
FDIC: You may submit comments on
the notice of proposed rulemaking using
any of the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal.
Follow the instructions for submitting
comments on the agency website.
• Email: comments@fdic.gov. Include
RIN 3064–AF67 on the subject line of
the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, 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 NW
building (located on F Street) on
business days between 7 a.m. and 5 p.m.
• Public Inspection: All comments
received, including any personal
information provided, will be posted
generally without change to https://
www.fdic.gov/regulations/laws/federal.
FOR FURTHER INFORMATION CONTACT:
OCC: Alison MacDonald, Special
Counsel, or Kevin Korzeniewski,
Counsel, Chief Counsel’s Office, (202)
649–5490.
Board: Juan Climent, Assistant
Director, (202) 872–7526, Eric Kennedy,
Assistant Director, (202) 263–4887,
Nancy J
ing any personal
information provided, will be posted
generally without change to https://
www.fdic.gov/regulations/laws/federal.
FOR FURTHER INFORMATION CONTACT:
OCC: Alison MacDonald, Special
Counsel, or Kevin Korzeniewski,
Counsel, Chief Counsel’s Office, (202)
649–5490.
Board: Juan Climent, Assistant
Director, (202) 872–7526, Eric Kennedy,
Assistant Director, (202) 263–4887,
Nancy J. Oakes, Manager, (202) 452–
3413, Teresa Scott, Manager, (202) 973–
6114, Naima Jefferson, Lead Financial
Institution Policy Analyst, (202) 912–
4613, Daniel Newman, Senior Data
Governance Analyst, (202) 973–7409,
Senait Kahsay, Senior Financial
Institution Policy Analyst II, (202) 245–
4209, Joseph Willcox, Senior Financial
Institution Policy Analyst II, (202) 452–
3663, Division of Supervision and
Regulation; Laurie Schaffer, Deputy
General Counsel (202) 452–2272,
Benjamin McDonough, Associate
General Counsel, (202) 973–7432, Jonah
Kind, Counsel (202) 452–2045, Justyna
Bolter, Senior Attorney (202) 452–2686,
Christopher Danello, Attorney, (202)
736–1960, Legal Division, Board of
Governors of the Federal Reserve
System, 20th and C Streets NW,
Washington, DC 20551. For users of
Telecommunication Device for the Deaf
(TDD), (202) 263–4869.
FDIC: Rae-Ann Miller, Associate
Director, Risk Management Policy, (202)
898–3898, Bobby R. Bean, Associate
Director, Capital Markets, (202) 898–
6705; William Piervincenzi, Supervisory
Counsel, (202) 898–6957, Nefretete A.
Smith, Counsel, (202) 898–6851,
Michael B. Phillips, Counsel, (202) 898–
3581, Jennifer M. Jones, Counsel, (202)
898–6768, jennjones@fdic.gov,
Supervision and Legislation Branch,
Legal Division, Federal Deposit
Insurance Corporation, 550 17th Street
NW, Washington, DC 20429. For the
hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Discussion
A. Interim Final Rule
B. Reservation of Authority
C
202)
898–6768, jennjones@fdic.gov,
Supervision and Legislation Branch,
Legal Division, Federal Deposit
Insurance Corporation, 550 17th Street
NW, Washington, DC 20429. For the
hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Discussion
A. Interim Final Rule
B. Reservation of Authority
C. Regulatory Reporting Changes
III. Request for Comment
IV. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Riegle Community Development and
Regulatory Improvement Act of 1994
F. Unfunded Mandates Reform Act of 1995
G. Use of Plain Language
I. Background
In light of strains in economic
conditions related to the COVID event
and stress in U.S. financial markets, the
agencies have taken a number of actions
intended to: (i) Restore market
functioning and support the flow of
credit to households, businesses, and
communities and (ii) increase flexibility
and reduce regulatory reporting burden.
Among those actions, the agencies have
issued a number of rules and
supervisory guidance communications
designed to mitigate the consequences
of the COVID event and to facilitate the
safe and effective operations of banking
organizations.1
Community banking organizations
have played an instrumental role in the
nation’s financial response to the
COVID event, and many have
experienced significant balance sheet
growth as a result of the COVID event
and the policy response to the event
ations
designed to mitigate the consequences
of the COVID event and to facilitate the
safe and effective operations of banking
organizations.1
Community banking organizations
have played an instrumental role in the
nation’s financial response to the
COVID event, and many have
experienced significant balance sheet
growth as a result of the COVID event
and the policy response to the event.
Policies encouraging banks to work with
their customers, such as the Small
Business Administration’s (SBA’s)
Paycheck Protection Program (PPP) 2
and the interagency statement
encouraging financial institutions to
work with borrowers affected by the
COVID event,3 have resulted in much-
needed emergency liquidity being
offered to small businesses, including,
but not limited to, individuals operating
sole proprietorships or acting as
independent contractors, certain
franchisees, nonprofit corporations,
veterans organizations, Tribal
businesses, and households. As a result,
during the COVID event many
community banking organizations have
experienced an unexpected and sharp
increase in assets, swelling their balance
sheets in some cases by more than 25
percent.4 Much of this growth,
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Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations
Statements for Holding Companies (FR Y–9C) data
December 31, 2019 to June 30, 2020.
5 See https://www.federalreserve.gov/newsevents/
pressreleases/monetary20200409a.htm.
6 See Paycheck Protection Program Liquidity
Facility Term Sheet, available at https://
www.federalreserve.gov/newsevents/pressreleases/
files/monetary20200728a7.pdf.
7 U.S. Small Business Administration, ‘‘Notice:
Paycheck Protection Program closed August 8,
2020,’’ available at https://www.sba.gov/funding-
programs/loans/coronavirus-relief-options/
paycheck-protection-program#section-header-0.
8 U.S
eck Protection Program Liquidity
Facility Term Sheet, available at https://
www.federalreserve.gov/newsevents/pressreleases/
files/monetary20200728a7.pdf.
7 U.S. Small Business Administration, ‘‘Notice:
Paycheck Protection Program closed August 8,
2020,’’ available at https://www.sba.gov/funding-
programs/loans/coronavirus-relief-options/
paycheck-protection-program#section-header-0.
8 U.S. Small Business Administration, ‘‘SBA and
Treasury Announce Simpler PPP Forgiveness for
Loans of $50,000 or Less’’, October 8, 2020 available
at https://www.sba.gov/article/2020/oct/08/sba-
treasury-announce-simpler-ppp-forgiveness-loans-
50000-or-less.
9 U.S. Small Business Administration, ‘‘Paycheck
Protection Program (PPP) Report: Approvals
through 08/08/2020,’’ available at https://
home.treasury.gov/system/files/136/SBA-Paycheck-
Protection-Program-Loan-Report-Round2.pdf.
10 As of the June 30, 2020, approximately 80
percent of depository institutions with assets less
than $10 billion reported PPP loans on their Call
Report.
11 The agencies recognize there are some
guidance documents that include asset-based
thresholds of $10 billion or below. In these
instances, the agencies are confirming that these
thresholds are exemplary only and not suggestive
of requirements. For the reasons discussed above,
the agencies will take the same perspective on
asset-based thresholds in guidance as they are
taking with regard to asset-based regulatory
thresholds.
12 Based on data as of June 30, 2020, the agencies
estimate that around 44 holding companies and 582
community banks crossed a regulatory threshold set
at $10 billion or less.
particularly that related to participation
in PPP, is expected to be temporary.
PPP loans are a special asset class of
government-guaranteed assets designed
to incentivize businesses to keep
workers on payroll
lds.
12 Based on data as of June 30, 2020, the agencies
estimate that around 44 holding companies and 582
community banks crossed a regulatory threshold set
at $10 billion or less.
particularly that related to participation
in PPP, is expected to be temporary.
PPP loans are a special asset class of
government-guaranteed assets designed
to incentivize businesses to keep
workers on payroll. To encourage
lending to small businesses through the
SBA’s PPP, the Board established the
PPP Liquidity Facility on April 9, 2019.5
Under the PPP Liquidity Facility, each
of the Federal Reserve Banks may
extend non-recourse loans to banking
organizations that pledge PPP loans,
which continue to be assets on the
balance sheets of banking organizations,
as collateral.6 The last day for lenders to
make a PPP loan was August 8, 2020,7
and depending on SBA determinations,
a significant amount of PPP debt
forgiveness may occur in the fourth
calendar quarter of 2020 or early in the
first calendar quarter of 2021. However,
as a result of the PPP loan forgiveness
process, many PPP-related assets remain
on community banking organizations’
balance sheets. The SBA recently
released a simpler loan forgiveness
application for PPP loans of $50,000 or
less, which will likely result in PPP-
related assets being removed from
community banking organization’s
balance sheets at a faster rate.8
According to SBA statistics,
collectively all lenders with less than
$10 billion in assets originated
2,745,204 PPP loans totaling $233.7
billion, which buttressed the paychecks
of more than 26 million American
workers and represented more than 52.6
percent of the number of loans
originated under the program.9 This
data suggests that the percentage of PPP
loans originated by community banking
organizations far exceeds those
organizations’ market share as a
percentage of total banking system
assets illustrating the outsized impact
that participation in the PPP has had on
community banking organizations.10
Co
presented more than 52.6
percent of the number of loans
originated under the program.9 This
data suggests that the percentage of PPP
loans originated by community banking
organizations far exceeds those
organizations’ market share as a
percentage of total banking system
assets illustrating the outsized impact
that participation in the PPP has had on
community banking organizations.10
Community banking organizations are
subject to a wide range of statutory
requirements, regulations, and reporting
requirements predicated on their risk
profile and asset size.11 Due to their
response to the COVID event, many
community banking organizations have
been, or may soon be, pushed over an
asset threshold that could subject them
to additional regulation or to additional
reporting requirements.12 In the absence
of regulatory burden relief, complying
with these new or more stringent
regulatory standards, especially if the
community banking organization’s
assets are expected to be above a
threshold for a limited time, would
impose significant transition and
compliance costs on community
banking organizations. This interim
final rule gives community banking
organizations more time to either reduce
their balance sheets by shedding
temporary growth, or to prepare for
higher regulatory and reporting
standards.
II. Discussion
A. Interim Final Rule
A number of regulations contain
asset-based thresholds that determine
whether a banking organization is
required to comply with a given
regulatory requirement or provide a
mandatory regulatory report, or whether
a banking organization is otherwise
eligible for a particular regulatory
treatment. Asset-based regulatory
thresholds are meant to ensure that the
regulatory requirements applicable to a
banking organization are appropriate,
given the banking organization’s likely
risk profile and, in some cases, the
potential risk that the banking
organization poses to U.S. financial
stability
whether
a banking organization is otherwise
eligible for a particular regulatory
treatment. Asset-based regulatory
thresholds are meant to ensure that the
regulatory requirements applicable to a
banking organization are appropriate,
given the banking organization’s likely
risk profile and, in some cases, the
potential risk that the banking
organization poses to U.S. financial
stability.
As discussed above, many community
banking organizations have experienced
an unexpected and sharp increase in
assets since the beginning of the COVID
event. This rapid growth has caused the
assets of certain community banking
organizations to rise above certain asset-
based thresholds in the agencies’
regulations, and may cause other
community banking organizations to do
so in the near future. As noted, much of
this growth, especially growth related to
PPP lending, is likely to be temporary,
and the increase in assets currently held
by a community banking organization
may not reflect a change in the
organization’s longer-term risk profile.
In the absence of regulatory burden
relief, community banking organizations
that experience an increase in assets
above one or more regulatory thresholds
would face significant transition costs
necessary to comply with new or more
stringent regulatory and reporting
standards. Given the rapid and
unexpected nature of community
banking organization asset growth in
2020, many community banking
organizations are unlikely to have
planned for these transition costs.
Further, to the extent this asset growth
is temporary, it does not reflect changes
in community banking organizations’
risk profiles, and many community
banking organizations that cross above
asset-based regulatory thresholds could
fall back below the thresholds
rganization asset growth in
2020, many community banking
organizations are unlikely to have
planned for these transition costs.
Further, to the extent this asset growth
is temporary, it does not reflect changes
in community banking organizations’
risk profiles, and many community
banking organizations that cross above
asset-based regulatory thresholds could
fall back below the thresholds.
Additionally, community banking
organizations that are approaching
certain asset thresholds in the agencies’
regulations may become reluctant to
continue lending if this would subject
them to new or more stringent
regulatory and reporting standards.
Therefore, the agencies believe it is
appropriate to provide temporary
regulatory burden relief to community
banking organizations that have risen
above, or will rise above, certain asset-
based regulatory thresholds. The relief
should promote further lending and
avoid potentially temporary, but
significant, transition costs that
community banking organizations
would otherwise face to comply with
new standards.
In order to provide this regulatory
burden relief, the agencies are issuing
this interim final rule to temporarily
change, for a number of asset-based
regulatory thresholds, the date as of
when a community banking
organization measures its assets for the
purpose of determining whether it
exceeds the threshold (referred to as the
‘‘measurement date’’). Specifically, the
interim final rule will permit
community banking organizations,
through December 31, 2021, to
determine the applicability of certain
asset-based regulatory thresholds using
asset data as of December 31, 2019, if
the organization’s assets as of that date
were less than its assets on the date as
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will permit
community banking organizations,
through December 31, 2021, to
determine the applicability of certain
asset-based regulatory thresholds using
asset data as of December 31, 2019, if
the organization’s assets as of that date
were less than its assets on the date as
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13 This interim final rule does not address the
exemption in the Board’s Regulation H from certain
flood insurance escrow requirements for qualifying
state member banks (less than $1 billion in assets
as of December 31 of either of the two prior
calendar years, provided other conditions are also
met), 12 CFR 208.25(e)(3), or the provision in the
Board’s Regulation BB defining small bank and
intermediate small bank for purposes of
determining applicable Community Reinvestment
Act evaluation procedures. As currently defined in
Regulation BB: a small bank is a bank that, as of
December 31 of either of the prior two calendar
years, had assets of less than $1.305 billion; an
intermediate small bank is a small bank with assets
of at least $326 million as of December 31 of both
of the prior two calendar years and less than $1.305
billion as of December 31 of either of the prior two
calendar years; and a large bank is a bank with
assets of at least $1.305 billion as of December 31
of both of the prior two calendar years, 12 CFR
228.12(u)(1). As indicated, the asset-based
thresholds in these provisions take into account
assets as of the end of the two previous calendar
years. Therefore, the earliest that a bank with assets
that did not exceed one of these thresholds as of
December 31, 2019, could exceed the threshold is
January 1, 2022. As a result, consistent with this
interim final rule, asset growth in 2020 or 2021 will
not trigger new regulatory requirements until
January 1, 2022, at the earliest
ount
assets as of the end of the two previous calendar
years. Therefore, the earliest that a bank with assets
that did not exceed one of these thresholds as of
December 31, 2019, could exceed the threshold is
January 1, 2022. As a result, consistent with this
interim final rule, asset growth in 2020 or 2021 will
not trigger new regulatory requirements until
January 1, 2022, at the earliest. For similar reasons,
the interim final rule does not adjust thresholds in
the OCC and the FDIC’s flood insurance escrow rule
at 12 CFR 22.5(c) (OCC) and 12 CFR 339.5(c) (FDIC)
and Community Reinvestment Act regulatory
thresholds for small banks and intermediate banks
at 12 CFR part 25 (OCC) and 12 CFR 345 (FDIC).
The OCC also is not adjusting thresholds for
depository institution management interlocks at 12
CFR part 26, as this part already permits any
affected bank to request a waiver related to
unanticipated asset growth.
14 This interim final rule only provides
temporary relief with regard to the measurement
date of assets. Other criteria that apply to certain
of the affected regulatory provisions remain in
effect, and the measurement date for other
quantities has not been changed by this interim
final rule.
of which the applicability of a given
threshold would normally be
determined. This means that asset
growth in 2020 or 2021 will not trigger
new regulatory requirements for these
community banking organizations until
January 1, 2022, at the earliest. This
temporary regulatory burden relief
reflects that much of the asset growth
since the start of the COVID event,
especially growth related to PPP
lending, is generally expected to be
temporary in nature and therefore likely
does not reflect changes in community
banking organizations’ risk profile.
The agencies are limiting the
regulatory burden relief in this interim
final rule to banking organizations that
had less than $10 billion in assets as of
December 31, 2019
ce the start of the COVID event,
especially growth related to PPP
lending, is generally expected to be
temporary in nature and therefore likely
does not reflect changes in community
banking organizations’ risk profile.
The agencies are limiting the
regulatory burden relief in this interim
final rule to banking organizations that
had less than $10 billion in assets as of
December 31, 2019. Banking
organizations with under $10 billion in
assets likely have fewer resources
available to prepare and comply with
previously unanticipated regulatory
requirements, especially during a time
of economic uncertainty and disruption.
Further, as discussed above, community
banking organizations have originated a
disproportionately large percentage of
PPP loans, as compared with the
organizations’ market share; therefore,
as compared to larger organizations, a
larger portion of any increase in asset
size at community banking
organizations is likely to be temporary,
and is therefore less likely to reflect a
change in an organization’s risk profile
or business activities.
This temporary regulatory burden
relief applies to the following asset-
based regulatory thresholds: 13
Regulation
Regulatory threshold
effect
Asset-based threshold 14
Rule location
Asset measurement date
(prior to January 1, 2022)
Asset measurement date
(for requirements in
2022)
OCC: Capital Adequacy
Standards (Part 3).
Board: Capital Adequacy
of Bank Holding Com-
panies, Savings and
Loan Holding Compa-
nies, and State Mem-
ber Banks (Regulation
Q).
FDIC: Capital Adequacy
of FDIC- Supervised
Institutions.
Eligibility for community
bank leverage ratio
framework.
$10 billion in total con-
solidated assets.
OCC: 12 CFR 3.12 .........
Board: 12 CFR 217.12
FDIC: 12 CFR 324.12
December 31, 2019, or
the end of the most re-
cent calendar quarter,
whichever results in a
lower amount.
End of the most recent
calendar quarter.
Board: Debit Card Inter-
change Fees and
Routing (Regulation II)
itutions.
Eligibility for community
bank leverage ratio
framework.
$10 billion in total con-
solidated assets.
OCC: 12 CFR 3.12 .........
Board: 12 CFR 217.12
FDIC: 12 CFR 324.12
December 31, 2019, or
the end of the most re-
cent calendar quarter,
whichever results in a
lower amount.
End of the most recent
calendar quarter.
Board: Debit Card Inter-
change Fees and
Routing (Regulation II).
Exemption for small
issuers.
$10 billion in assets ........
Board: 12 CFR 235.5(a)
December 31, 2019, or
December 31, 2020,
whichever results in a
lower amount.
December 31, 2021.
Board: Management Offi-
cial Interlocks (Regula-
tion L).
FDIC: Management Offi-
cial Interlocks.
Exemption from prohibi-
tion on service as a
‘‘management official’’
of multiple institutions.
$10 billion in total assets
Board: 12 CFR 212.3(c)
FDIC: 12 CFR 348.3(c)
December 31, 2019, or
the end of the deposi-
tory organization’s
most recent fiscal year,
whichever results in a
lower amount.
End of the most recent
fiscal year.
Exemption for honorary
or advisory directors
from definition of
‘‘management official’’.
$100 million in total as-
sets.
Board: 12 CFR
212.2(j)(1)
FDIC: 12 CFR
348.2(k)(1).
Exemption from relevant
metropolitan statistical
area prohibition.
$50 million in total assets
Board: 12 CFR 212.3(b)
FDIC: 12 CFR 348.3(b).
Board: Savings and Loan
Holding Companies
(Regulation LL).
Interlocks—Major asset
prohibition.
$10 billion .......................
Board: 12 CFR 238.93(c)
December 31, 2019, or
the end of the organi-
zation’s most recent
fiscal year, whichever
results in a lower
amount.
End of the most recent
fiscal year.
Audit requirement for
safety and soundness
purposes.
$500 million ....................
Board: 12 CFR 238.5(b)
December 31, 2019, or
end of the organiza-
tion’s most recent fis-
cal year, whichever re-
sults in a lower amount.
End of the most recent
fiscal year.
Informational require-
ments for acquisition of
a company.
$150 million ...................
t.
End of the most recent
fiscal year.
Audit requirement for
safety and soundness
purposes.
$500 million ....................
Board: 12 CFR 238.5(b)
December 31, 2019, or
end of the organiza-
tion’s most recent fis-
cal year, whichever re-
sults in a lower amount.
End of the most recent
fiscal year.
Informational require-
ments for acquisition of
a company.
$150 million ....................
Board: 12 CFR 238.53(c)
(2)(iii)–(iv).
December 31, 2019, or
the end of the most re-
cent calendar quarter,
whichever results in a
lower amount.
End of the most recent
calendar quarter.
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77349
Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations
15 12 CFR 235.5(a).
16 See 12 CFR 3.12(c) (OCC); 12 CFR 217.12(c)
(Board); 12 CFR 324.12(c) (FDIC) (community bank
leverage ratio framework); 12 CFR 235.5(a)(3) (rules
regarding debit card interchange fees and routing).
Regulation
Regulatory threshold
effect
Asset-based threshold 14
Rule location
Asset measurement date
(prior to January 1, 2022)
Asset measurement date
(for requirements in
2022)
Interlocks—Exemption for
honorary or advisory
directors from definition
of ‘‘management offi-
cial’’.
$100 million ....................
Board: 12 CFR
238.92(j)(1)
December 31, 2019, or
the end of the organi-
zation’s most recent
fiscal year, whichever
results in a lower
amount.
End of the most recent
fiscal year.
Interlocks—Exemption
from relevant metro-
politan statistical area
prohibition.
$50 million ......................
Board: 12 CFR 238.93(b)
December 31, 2019, or
the end of the organi-
zation’s most recent
fiscal year, whichever
results in a lower
amount.
End of the most recent
fiscal year.
OCC: Regulatory Report-
ing (Part 52)
ults in a lower
amount.
End of the most recent
fiscal year.
Interlocks—Exemption
from relevant metro-
politan statistical area
prohibition.
$50 million ......................
Board: 12 CFR 238.93(b)
December 31, 2019, or
the end of the organi-
zation’s most recent
fiscal year, whichever
results in a lower
amount.
End of the most recent
fiscal year.
OCC: Regulatory Report-
ing (Part 52).
Board: Membership of
State Banking Institu-
tions in the Federal
Reserve System (Reg-
ulation H)
FDIC: Forms, Instruc-
tions, and Reports
Eligibility for reduced re-
porting of the Consoli-
dated Reports of Con-
dition and Income (Call
Report).
$5 billion .........................
OCC: 12 CFR 52.2
Board: 12 CFR
208.122(b)
FDIC: 12 CFR 304.12(a)
December 31, 2019, or
June 30, 2020, which-
ever results in a lower
amount.
June 30, 2021.
OCC: Organization and
Functions (Part 4, Sub-
part A).
Board: Membership of
State Banking Institu-
tions in the Federal
Reserve System (Reg-
ulation H).
FDIC: Unsafe and Un-
sound Bank Practices.
Eligibility for 18-month
examination cycle.
$3 billion .........................
OCC: 12 CFR 4.6(b) ......
Board: 12 CFR 208.64(b)
FDIC: 12 CFR 337.12(b)
December 31, 2019, or
the end of the most re-
cent calendar quarter,
whichever results in a
lower amount.
End of most recent cal-
endar quarter.
Board: Membership of
State Banking Institu-
tions in the Federal
Reserve System (Reg-
ulation H).
Eligibility for streamlined
method of compliance
with the reporting re-
quirements of the Se-
curities and Exchange
Commission.
$150 million ....................
12 CFR 208.36(b) ...........
December 31, 2019, or
the end of the bank’s
most recent fiscal year,
whichever results in a
lower amount.
End of the most recent
fiscal year.
Bank Holding Companies
and Change in Bank
Control (Regulation Y)
ity for streamlined
method of compliance
with the reporting re-
quirements of the Se-
curities and Exchange
Commission.
$150 million ....................
12 CFR 208.36(b) ...........
December 31, 2019, or
the end of the bank’s
most recent fiscal year,
whichever results in a
lower amount.
End of the most recent
fiscal year.
Bank Holding Companies
and Change in Bank
Control (Regulation Y).
Various thresholds in the
Board’s rules regarding
bank holding compa-
nies and change in
bank control (Regula-
tion Y) concerning fil-
ing requirements and
permissible activities.
$3 billion, $300 million,
$150 million, and $50
million.
12 CFR 225.4(b)(2)
(iii)(A)–(B),
225.14(a)(1)(v)(A)(1)–
(2), 225.14(a)(1)(vi),
224.14(c)(6)(ii),
225.17(a)(6),
225.23(a)(1)(iii)(A)(1)–
(2), 225.23(c)(5)(ii),
225.24(a)(2)(iv)–(v),
225.28(b)(11)(vi), and
Appendix C.
December 31, 2019, or
the end of the most re-
cent calendar quarter,
whichever results in a
lower amount.
Normally applicable asset
measurement date.
OCC: Organization and
Functions (Part 4, Sub-
part A).
Board: International
Banking Operations
(Regulation K).
FDIC: International Bank-
ing.
Eligibility for an 18-month
examination cycle for
U.S. branches and
agencies of foreign
banks.
$3 billion .........................
OCC: 12 CFR 4.7(b) ......
Board: 12 CFR
211.26(c)(2)
FDIC: 12 CFR
347.211(b)
December 31, 2019, or
the end of the most re-
cent calendar quarter,
whichever results in a
lower amount.
End of most recent cal-
endar quarter.
As a result of this temporary
regulatory burden relief, a community
banking organization that was below
one of the above-listed asset thresholds
as of December 31, 2019, generally will
be deemed to remain below that
threshold through the end of 2021, plus
any applicable transition period
provided by the regulation
hichever results in a
lower amount.
End of most recent cal-
endar quarter.
As a result of this temporary
regulatory burden relief, a community
banking organization that was below
one of the above-listed asset thresholds
as of December 31, 2019, generally will
be deemed to remain below that
threshold through the end of 2021, plus
any applicable transition period
provided by the regulation. For
example, the Board’s rules regarding
debit card interchange fees and routing
include an exemption for small issuers,
which provides that a debit card issuer
is not required to comply with certain
requirements with respect to an
electronic debit transaction if the issuer
holds the account that is debited and
the issuer, together with its affiliates,
has assets of less than $10 billion as of
the end of the calendar year preceding
the date of the electronic debit
transaction.15 Pursuant to this interim
final rule, an issuer that, together with
its affiliates, had assets of $9.9 billion as
of December 31, 2019, $10.1 billion as
of December 30, 2020, and $10.1 billion
as of December 31, 2021, would be
deemed to remain below the $10 billion
threshold for purposes of this rule
through the end of 2021, at which point
the six-month transition period
provided by 12 CFR 235.5(a)(3) would
begin. Therefore, this issuer would not
be required to comply with the Board’s
rules regarding debit card interchange
fees and routing until July 1, 2022.
The temporary regulatory burden
relief provided by this interim final rule
applies through the end of 2021, so that
a community banking organization
within the scope of the temporary
regulatory burden relief will not be
required to comply with the regulatory
or reporting requirements covered by
this interim final rule until the
beginning of 2022 (plus any applicable
transition period),16 at the earliest,
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king organization
within the scope of the temporary
regulatory burden relief will not be
required to comply with the regulatory
or reporting requirements covered by
this interim final rule until the
beginning of 2022 (plus any applicable
transition period),16 at the earliest,
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17 12 CFR 44.2(c) (OCC); 12 CFR 248.2(c) (Board);
12 CFR 324.12(c) (FDIC).
18 12 CFR 44.2(r) (OCC); 12 CFR 248.2(r)(2)
(Board); 12 CFR 351.2(r)(2) (FDIC). The Economic
Growth, Regulatory Relief, and Consumer
Protection Act (EGRRCPA), enacted on May 24,
2018, amended section 13 of the BHC Act by
modifying the definition of ‘‘banking entity,’’ to
exclude certain small firms from section 13’s
restrictions. EGRRCPA, Public Law 115–174,
section 203 (May 24, 2018). This amendment was
effective upon EGRRCPA’s enactment.
19 Pursuant to sections (c)(2) and (c)(6) of the
Volcker Rule (12 U.S.C. 1851(c)(2) and (c)(6)), the
Board has sole authority to issue rules to implement
the Volcker Rule conformance period.
20 See 12 CFR 225.181(a)(2), (3).
21 Although the conformance regulation refers to
a requirement that a company was not a banking
entity as of July 21, 2010, EGRRCPA’s change to the
definition of ‘‘banking entity’’ means that a firm
that was below the asset threshold as of July 21,
2010, regardless of whether it was subject to the
Volcker Rule at the time, is eligible for the
conformance period if it becomes a banking entity
due to exceeding the asset threshold.
22 With respect to the exemption for small issuers
from the Board’s rules regarding debit card
interchange fees and routing, the reservation of
authority will concern a determination related to
the issuer’s asset profile, rather than its risk profile,
due to differences in the relevant statutory
framework
nformance period if it becomes a banking entity
due to exceeding the asset threshold.
22 With respect to the exemption for small issuers
from the Board’s rules regarding debit card
interchange fees and routing, the reservation of
authority will concern a determination related to
the issuer’s asset profile, rather than its risk profile,
due to differences in the relevant statutory
framework.
23 The interim final rule does not include a new
reservation of authority in connection with the
temporary relief provided with respect to the $3
billion threshold in the agencies’ rules that
determines, in part, a depository institution’s
eligibility for an 18-month examination cycle,
because the rules already contain a reservation of
authority pursuant to which each agency may
examine any depository institution that it
supervises as frequently as the agency deems
necessary. 12 CFR 4.6(c) and 4.7(c) (OCC); 12 CFR
208.64(c) (Board); 12 CFR 337.12(c) and 12 CFR
347.211(c) (FDIC). Amendments to the agencies’
capital regulations governing eligibility for use of
the community bank leverage ratio framework and
regulations affecting the prohibition on certain
management official interlocks each include a
reservation of authority. The agencies may exercise
this reservation of authority to determine that such
relief provisions shall not apply to a supervised
institution if the relevant agency determines that
such relief would not be commensurate with the
risk posed by the institution. Amendments to the
regulations governing eligibility to use the FFIEC
051 do not include new reservations of authority
because the existing reservations of authority would
continue to apply. The existing Call Reports rules
reserve the authority of each agency to require a
depository intuition otherwise eligible for reduced
reporting to file the FFIEC 041 version of the report
of condition. 12 CFR 52.4 (OCC); 12 CFR 304.14
(FDIC)
eligibility to use the FFIEC
051 do not include new reservations of authority
because the existing reservations of authority would
continue to apply. The existing Call Reports rules
reserve the authority of each agency to require a
depository intuition otherwise eligible for reduced
reporting to file the FFIEC 041 version of the report
of condition. 12 CFR 52.4 (OCC); 12 CFR 304.14
(FDIC).
24 The temporary regulatory burden relief
provided by this interim final rule does not
eliminate any existing authority of the Board to
apply a regulatory standard, such as a standard
related to application processing, to a community
banking organization that, due to its asset size,
would otherwise not qualify for the standard. For
example, a bank holding company that meets
certain characteristics, including asset-size limits,
may be eligible for streamlined application
processing. However, the Board or its delegatee may
in its discretion notify such organizations that a full
application is required in order to permit a closer
assuming that the organization remains
above the relevant threshold.
The agencies have determined not to
amend in this interim final rule a
provision in the agencies’ regulations
regarding section 13 of the Bank
Holding Company Act (BHC Act)
(commonly known as the Volcker Rule).
The Volcker Rule generally applies to
‘‘banking entities,’’ which include
insured depository institutions, their
affiliates, and any company that
controls an insured depository
institution, among other companies.17
For purposes of the Volcker Rule, the
definition of ‘‘insured depository
institution’’ excludes an insured
depository institution if the insured
depository institution, and every entity
that controls it, has total consolidated
assets equal to or less than $10 billion,
as long as the total consolidated trading
assets and liabilities of the insured
depository institution, and every entity
that controls it, are equal to or less than
five percent of the insured depository
ins
excludes an insured
depository institution if the insured
depository institution, and every entity
that controls it, has total consolidated
assets equal to or less than $10 billion,
as long as the total consolidated trading
assets and liabilities of the insured
depository institution, and every entity
that controls it, are equal to or less than
five percent of the insured depository
institution’s total consolidated assets.18
The agencies have determined that it
is not necessary to amend the Volcker
Rule regulations in order to provide
temporary regulatory burden relief to a
bank or any of its subsidiaries or
affiliates that become a ‘‘banking entity’’
for purposes of the Volcker Rule
because the assets of the bank or any
entity that controls it increase above the
$10 billion asset threshold. Under
section 13 of the BHC Act and the
Board’s rule implementing the
conformance period in the Volcker
Rule,19 an entity that newly becomes a
‘‘banking entity’’ for purposes of the
Volcker Rule has two years to come into
compliance with the requirements of the
Volcker Rule, and may seek an
extension of the conformance period
from the Board.20 A banking entity that
ceases to be a banking entity during that
period—for example by virtue of
reducing its asset size—would no longer
be subject to the Volcker Rule.
The regulation implementing the
statutory Volcker Rule conformance
period have not yet been updated to
account for the change in the definition
of ‘‘banking entity’’ implemented by
EGRRCPA
ormance period
from the Board.20 A banking entity that
ceases to be a banking entity during that
period—for example by virtue of
reducing its asset size—would no longer
be subject to the Volcker Rule.
The regulation implementing the
statutory Volcker Rule conformance
period have not yet been updated to
account for the change in the definition
of ‘‘banking entity’’ implemented by
EGRRCPA. However, the Board notes
that because the changes EGRRCPA
made to the Volcker Rule were effective
immediately upon enactment, the
conformance period regulation should
be read in a way that is consistent with
EGRRCPA and takes into account the
amendments it made to the definition of
‘‘banking entity.’’ Under this
interpretation, a company may become
a new banking entity by virtue of
crossing the $10 billion asset threshold
under the definition of ‘‘banking
entity,’’ as amended by EGRRCPA.
Therefore, for the sake of clarification,
the Board confirms that a company that
was not a banking entity, or a subsidiary
or affiliate of a banking entity, and then
becomes a banking entity for purposes
of the Volcker Rule because it, or any
subsidiary or affiliate, exceeds $10
billion in assets, will qualify for the
conformance period described in the
Volcker Rule and the Board’s
implementing regulations.21 This
interpretation covers any company that
crossed the $10 billion asset threshold
after the enactment of EGRRCPA on
May 24, 2018, including a company that
crossed the threshold after December 31,
2019.
A. Reservation of Authority
The temporary regulatory burden
relief described above is generally
available to community banking
organizations that meet the
requirements described above. However,
there may be limited instances in which
such regulatory burden relief would be
inappropriate
t of EGRRCPA on
May 24, 2018, including a company that
crossed the threshold after December 31,
2019.
A. Reservation of Authority
The temporary regulatory burden
relief described above is generally
available to community banking
organizations that meet the
requirements described above. However,
there may be limited instances in which
such regulatory burden relief would be
inappropriate. In order to address
certain such situations, the agencies
may use existing reservations of
authority in their respective regulations
to require a community banking
organization to comply with a given
regulatory requirement that would
otherwise not be applicable to the
organization pursuant to the relief
provided by this interim final rule.
Additionally, with respect to each of the
asset-based regulatory thresholds that
did not previously include a reservation
of authority, the interim final rule
creates a new reservation of authority
pursuant to which an agency may
determine that a community banking
organization is not eligible to use the
relief provision with respect to one or
more of the asset thresholds covered by
the rule if the relevant agency makes an
institution-specific determination that
permitting the institution to determine
its assets in accordance with that relief
provision would not be appropriate
based on the organization’s risk
profile.22 23 When making any such
determination, the agencies would
consider all relevant factors, including
the extent of asset growth of the
community banking organization since
December 31, 2019; the causes of such
growth, including whether growth
occurred as a result of mergers or
acquisitions; whether such growth is
likely to be temporary or permanent;
whether the community banking
organization has become involved in
any additional activities since December
31, 2019, and, if so, the risk of such
activities; the asset size of any parent
companies; and the type of assets held
by the community banking
organization.24
VerDate Sep<11>2
urred as a result of mergers or
acquisitions; whether such growth is
likely to be temporary or permanent;
whether the community banking
organization has become involved in
any additional activities since December
31, 2019, and, if so, the risk of such
activities; the asset size of any parent
companies; and the type of assets held
by the community banking
organization.24
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review of the proposal. Nothing in this interim final
rule affects the Board’s authority to exercise such
discretion, to request information that is needed to
analyze the relevant statutory factors for an
application or notice, or to consider the ability of
a community banking organization that files a
notice or application with the Board to comply with
statutory or regulatory requirements that may be
applicable to the organization upon expiration of
the relief provided by this interim final rule.
Certain provisions of the Board’s Regulation Y
include asset-based thresholds of $10 billion or
below that are based on the pro forma consolidated
assets of a bank holding company or the
consolidated risk-weighted assets of a bank holding
company immediately following consummation of
a proposed transaction. With regard to these
thresholds, the interim final rule permits bank
holding companies, through 2021, to calculate pro
forma assets by adding together the assets that each
company involved in a business combination had
as of December 31, 2019. However, the calculation
of pro forma or combined assets must also include
the December 31, 2019, assets of any company with
which any company that is party to a proposed
business combination has itself combined with
since December 31, 2019
ugh 2021, to calculate pro
forma assets by adding together the assets that each
company involved in a business combination had
as of December 31, 2019. However, the calculation
of pro forma or combined assets must also include
the December 31, 2019, assets of any company with
which any company that is party to a proposed
business combination has itself combined with
since December 31, 2019.
In particular, in determining that the
community banking organization is not
eligible to use a regulatory burden relief
provision, the relevant agency will
consider whether a community banking
organization crossed an asset-based
regulatory threshold due to a merger or
acquisition that significantly increases
the community banking organization’s
asset size. Asset growth that occurs as
a result of a merger or acquisition is
planned, unlike the growth that many
community banking organizations have
experienced since the beginning of the
COVID event. Community banking
organizations crossing a regulatory
threshold as a result of a merger or
acquisition therefore have had the
opportunity to prepare for the change in
regulatory requirements. Additionally,
asset growth caused by a merger or
acquisition is generally expected to be
permanent and therefore not impose
transition costs for a requirement
expected to be temporary. The
reservations of authority included in
this interim final rule are not limited to
situations in which there has been a
merger or acquisition because, even in
the absence of a merger or acquisition
transaction, significant asset growth at a
community banking organization may
reflect a material change in the business
model, risk profile, or complexity of the
community banking organization
e
reservations of authority included in
this interim final rule are not limited to
situations in which there has been a
merger or acquisition because, even in
the absence of a merger or acquisition
transaction, significant asset growth at a
community banking organization may
reflect a material change in the business
model, risk profile, or complexity of the
community banking organization.
Nonetheless, the agencies expect to
apply the reservation of authority only
in limited circumstances, such as when
there is significant growth due to a
merger or acquisition or when there is
a material change in the business model,
risk profile, or complexity of the
community banking organization.
B. Regulatory Reporting Changes
Similar to the Board’s regulations, a
number of the Board’s regulatory reports
contain asset-based thresholds that
determine whether a banking
organization is required to report certain
information. For the same reason that
the Board is providing the regulatory
burden relief discussed above with
regard to determining the applicability
of asset-based thresholds contained in
the Board’s regulations, the Board is
temporarily revising certain of its
regulatory reports that contain asset-
based reporting thresholds set at $10
billion or less pursuant to the Board’s
authority to temporarily revise a
collection of information without
providing the opportunity for public
comment. This regulatory burden relief
applies to reports with as-of dates up to
and including December 31, 2021.
Specifically, with regard to each of the
regulatory reports discussed below,
through December 31, 2021, a banking
organization will be permitted to
determine the applicability of asset-
based reporting thresholds set at $10
billion or less using asset data as of
December 31, 2019, if the organization’s
assets as of that date were less than its
assets on the date as of which the
applicability of a given threshold would
normally be determined
ports discussed below,
through December 31, 2021, a banking
organization will be permitted to
determine the applicability of asset-
based reporting thresholds set at $10
billion or less using asset data as of
December 31, 2019, if the organization’s
assets as of that date were less than its
assets on the date as of which the
applicability of a given threshold would
normally be determined. The revisions
to the affected reports do not affect the
substantive reporting instructions for
any item, schedule, or report. Rather,
they merely affect which banking
organizations are required to report
certain items, schedules, or reports.
As with regard to asset-based
regulatory thresholds, and for the same
reasons, the Board will retain a
reservation of authority with regard to
each of the affected reports, pursuant to
which the Board would retain the
authority to require a banking
organization to use an asset
measurement date other than December
31, 2019, to determine compliance with
a reporting threshold. The Board will
use the same factors in determining
whether to exercise its reservation of
authority with regard to reporting
thresholds as with regard to regulatory
thresholds.
The regulatory burden relief
discussed above applies to the following
information collections:
• Financial Statements for Holding
Companies (FR Y–9 Reports; OMB No.
7100–0128);
• Statements of U.S. Nonbank
Subsidiaries of U.S. Holding Companies
(FR Y–11 and FR Y–11S; 7100–0244);
• Reports of Foreign Banking
Organizations (FR Y–7N, FR Y–7NS,
and FR Y–7Q; 7100–0125); and
• Statements of Foreign Subsidiaries
of U.S. Banks (FR 2314 and FR 2314S;
OMB No. 7100–0073).
The agencies plan to publish a
separate Federal Register notice that
will address corresponding changes to
the Call Reports.
The following chart summarizes the
manner in which banking organizations
will be required to determine the
applicability of various reporting
thresholds through the end of 2021 and
afterwards
n Subsidiaries
of U.S. Banks (FR 2314 and FR 2314S;
OMB No. 7100–0073).
The agencies plan to publish a
separate Federal Register notice that
will address corresponding changes to
the Call Reports.
The following chart summarizes the
manner in which banking organizations
will be required to determine the
applicability of various reporting
thresholds through the end of 2021 and
afterwards.
TABLE 1—REPORTING REQUIREMENTS FOR AFFECTED FEDERAL RESERVE REPORTS UNDER THE INTERIM FINAL RULE AND
AFTER REGULATORY BURDEN RELIEF ENDS 1
Information collection
Reporting applicability for 2020–2021
Filers use assets as of these dates to
determine reporting requirement for 2022 2
FR Y–9C (quarterly)—Consolidated Financial
Statements for Holding Companies.
Report filing not required for holding company
below the $3 billion asset threshold using
the lesser of most current filing applicable
date or 12/31/2019 as-of-date.
Use 06/30/2021 total assets to determine re-
porting applicability for reports with 2022 as-
of dates.
FR Y–9LP (quarterly)—Parent Company Only
Financial Statements for Large Holding
Companies.
Report filing not required for holding company
below the $3 billion asset threshold using
the lesser of most current filing applicable
date or 12/31/2019 as-of-date.
Use 06/30/2021 total assets to determine re-
porting applicability for reports with 2022 as-
of dates.
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Companies.
Report filing not required for holding company
below the $3 billion asset threshold using
the lesser of most current filing applicable
date or 12/31/2019 as-of-date.
Use 06/30/2021 total assets to determine re-
porting applicability for reports with 2022 as-
of dates.
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77352
Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations
TABLE 1—REPORTING REQUIREMENTS FOR AFFECTED FEDERAL RESERVE REPORTS UNDER THE INTERIM FINAL RULE AND
AFTER REGULATORY BURDEN RELIEF ENDS 1—Continued
Information collection
Reporting applicability for 2020–2021
Filers use assets as of these dates to
determine reporting requirement for 2022 2
FR Y–11 (quarterly)—Financial Statements of
U.S. Nonbank Subsidiaries of U.S. Bank
Holding Companies.
Quarterly report filing not required if nonbank
subsidiary had assets of at least $500 mil-
lion but less than $1 billion using the lesser
of most current filing applicable date or 12/
31/2019 as-of-date and does not meet any
the other criteria to file quarterly.
Use 06/30/2021 total assets to determine eli-
gibility for reports with 2022 as-of dates.
FR Y–11 (annual)—Financial Statements of
U.S. Nonbank Subsidiaries of U.S. Bank
Holding Companies.
Annual report filing not required if nonbank
subsidiary has assets of less than $500 mil-
lion using the lesser of most current filing
applicable date or 12/31/2019 as-of-date.
Use total assets as of the reporting as-of date
(12/31/2022) to determine reporting applica-
bility.
FR Y–11S (annual)—Abbreviated Financial
Statements of U.S. Nonbank Subsidiaries of
U.S. Holding Co.
Report filing not required if nonbank sub-
sidiary was not greater than $250 million
and less than $500 million using the lesser
of most current filing applicable date or 12/
31/2019 as-of-date and does not meet the
other filing criteria
e
(12/31/2022) to determine reporting applica-
bility.
FR Y–11S (annual)—Abbreviated Financial
Statements of U.S. Nonbank Subsidiaries of
U.S. Holding Co.
Report filing not required if nonbank sub-
sidiary was not greater than $250 million
and less than $500 million using the lesser
of most current filing applicable date or 12/
31/2019 as-of-date and does not meet the
other filing criteria.
Use total assets as of the reporting as-of date
(12/31/2022) to determine reporting applica-
bility.
FR Y–7N (quarterly)—Financial Statements of
U.S. Nonbank Subsidiaries Held by Foreign
Banking Organizations.
Quarterly report filing not required if nonbank
subsidiary was below the $1 billion asset
threshold using the lesser of most current
filing applicable date or 12/31/2019 as-of-
date and does not meet any other filing cri-
teria.
Use total assets as of the reporting as-of date
to determine reporting applicability.
FR Y–7N (annual)—Financial Statements of
U.S. Nonbank Subsidiaries Held by Foreign
Banking Organizations.
Report filing not required if nonbank sub-
sidiary was not greater than $500 million
and less than $1 billion using lesser of most
current filing applicable date or 12/31/2019
as-of-date and does not meet any other fil-
ing criteria.
Use total assets as of the reporting as-of date
(12/31/2022) to determine reporting applica-
bility.
FR Y–7NS (annual)—Abbreviated Financial
Statements of U.S. Nonbank Subsidiaries
Held by Foreign Banking Organizations.
Report filing not required if nonbank sub-
sidiary was not greater than $250 million
and less than $500 million using the lesser
of most current filing applicable date or 12/
31/2019 as-of-date and does not meet the
other filing criteria.
Use total assets as of the reporting as-of date
(12/31/2022) to determine reporting applica-
bility.
FR 2314 (quarterly)—Financial Statements of
Foreign Subsidiaries of U.S. Banking Organi-
zations
sidiary was not greater than $250 million
and less than $500 million using the lesser
of most current filing applicable date or 12/
31/2019 as-of-date and does not meet the
other filing criteria.
Use total assets as of the reporting as-of date
(12/31/2022) to determine reporting applica-
bility.
FR 2314 (quarterly)—Financial Statements of
Foreign Subsidiaries of U.S. Banking Organi-
zations.
Quarterly report filing not required if nonbank
subsidiary has assets less than $1 billion
using the lesser of most current filing appli-
cable date or 12/31/2019 as-of-date and
does not meet any of other criteria to file
quarterly.
Use 06/30/2021 total assets to determine eli-
gibility for reports with 2022 as-of dates.
FR 2314 (annual)—Financial Statements of
Foreign Subsidiaries of U.S. Banking Organi-
zations.
Report filing not required if nonbank was not
greater than $500 million and less than $1
billion in total assets using lesser of most
current filing applicable date or 12/31/2019
as-of-date.
Use total assets as of the reporting as-of date
(12/31/2022) to determine reporting applica-
bility.
FR 2314S (annual)—Abbreviated Financial
Statements of Foreign Subsidiaries of U.S.
Banking Org.
Report filing not required if nonbank was not
greater than $250 million and less than
$500 million in total asset using the lesser
of most current filing applicable date or 12/
31/2019 as-of-date.
Use total assets as of the reporting as-of date
(12/31/2022) to determine reporting applica-
bility.
1 During 2020–2021, applicability of new reporting requirements would be based on the December 31, 2019 data. For example, a holding com-
pany that does not currently file the FR Y–9C will not use its June 2020 total consolidated assets (TCA) to determine the March 31, 2021, filing
requirement, and would not be required to file the FR Y–9C report until March 21, 2022
e reporting applica-
bility.
1 During 2020–2021, applicability of new reporting requirements would be based on the December 31, 2019 data. For example, a holding com-
pany that does not currently file the FR Y–9C will not use its June 2020 total consolidated assets (TCA) to determine the March 31, 2021, filing
requirement, and would not be required to file the FR Y–9C report until March 21, 2022. After the regulatory burden relief ends, the institution
would use June 30, 2021, TCA to determine initial filing for the March 31, 2022, reporting period.
2 Beginning January 1, 2022, asset measurement for applicability of reporting will revert-back to how institutions determined applicability prior
to the reporting relief.
II. Request for Comment
The agencies seek comment on all
aspects of this interim final rule. In
particular, the agencies seek comment
on the duration of the temporary
regulatory burden relief and on the
following specific question:
(1): What are the advantages and
disadvantages of requiring community
banking organizations subject to this
interim final rule to determine
compliance with regulatory thresholds
using the lesser of an organization’s
assets as of December 31, 2019, and its
assets on the date as of which the
applicability of a given threshold would
normally be determined? What would
be the advantages and disadvantages of
an alternative measurement date?
Commenters are invited to describe
other dates and the advantages and
disadvantages of any such dates.
III. Administrative Law Matters
A. Administrative Procedure Act
The agencies are issuing the interim
final rule without prior notice and the
opportunity for public comment and
without the 30-day delayed effective
date ordinarily prescribed by the
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advantages of any such dates.
III. Administrative Law Matters
A. Administrative Procedure Act
The agencies are issuing the interim
final rule without prior notice and the
opportunity for public comment and
without the 30-day delayed effective
date ordinarily prescribed by the
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Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations
25 5 U.S.C. 553.
26 5 U.S.C. 553(b)(B).
27 5 U.S.C. 553(d).
28 5 U.S.C. 801 et seq.
29 5 U.S.C. 801(a)(3).
30 5 U.S.C. 804(2).
31 44 U.S.C. 3501–3521.
Administrative Procedure Act (APA).25
Pursuant to section 553(b)(B) of the
APA, general notice and the opportunity
for public comment are not required
with respect to a rulemaking when an
‘‘agency for good cause finds (and
incorporates the finding and a brief
statement of reasons therefor in the
rules issued) that notice and public
procedure thereon are impracticable,
unnecessary, or contrary to the public
interest.’’ 26
As discussed above, the interim final
rule provides temporary regulatory
burden relief to community banking
organizations crossing regulatory and
reporting asset thresholds in 2020 and
2021. Many community banking
organizations have experienced
dramatic and unexpected increases in
their assets as a result of their efforts to
support the economy during the
ongoing COVID event. As noted, a
significant portion of this asset growth
can be traced to participation by
community banking organizations in
emergency lending programs sponsored
by the U.S. government, other lending
related to the COVID event, and an
unexpected surge in deposits. The
interim final rule facilitates the ability
of community banking organizations to
temporarily defer the implementation of
regulatory and reporting thresholds that
would not have been applicable had
they not experienced this growth in
assets
ns in
emergency lending programs sponsored
by the U.S. government, other lending
related to the COVID event, and an
unexpected surge in deposits. The
interim final rule facilitates the ability
of community banking organizations to
temporarily defer the implementation of
regulatory and reporting thresholds that
would not have been applicable had
they not experienced this growth in
assets. Therefore, the interim final rule
benefits community banking
organizations from the above referenced
regulations and reports by providing
temporary regulatory burden relief. The
interim final rule does not impose any
requirements on any covered
community banking organizations.
The agencies believe that the public
interest is best served by making the
interim final rule effective immediately
upon publication in the Federal
Register. The agencies believe that
issuing the interim final rule will ensure
that community banking organizations
will not be unnecessarily required to
comply with threshold-based regulatory
standards that may not be appropriate
given the organizations’ likely long-term
risk profile and activities after the
reversal of any temporary growth. The
interim final rule also will allow
community banking organizations to
avoid the costs of temporarily
complying with regulatory
requirements, allowing the banking
organizations to continue to focus on
the provision of credit during this time
of economic stress. In addition, the
agencies believe that providing a notice
and comment period prior to issuance of
the interim final rule is impracticable,
as community banking organizations
may start incurring transition costs prior
to the end of 2020 in anticipation of
needing to comply with additional
requirements starting as early as
December 31, 2020. For these reasons,
the agencies find there is good cause
consistent with the public interest to
issue the interim final rule without
advance notice and comment
inal rule is impracticable,
as community banking organizations
may start incurring transition costs prior
to the end of 2020 in anticipation of
needing to comply with additional
requirements starting as early as
December 31, 2020. For these reasons,
the agencies find there is good cause
consistent with the public interest to
issue the interim final rule without
advance notice and comment.
The APA also requires a 30-day
delayed effective date, except for (1)
substantive rules which grant or
recognize an exemption or relieve a
restriction; (2) interpretative rules and
statements of policy; or (3) as otherwise
provided by the agency for good
cause.27 The agencies find good cause to
publish the interim final rule with an
immediate effective date for the same
reasons set forth above under the
discussion of section 553(b)(B) of the
APA.
While the agencies believe there is
good cause to issue the interim final
rule without advance notice and
comment and with an immediate
effective date, the agencies are
requesting comment on all aspects of
the interim final rule.
B. Congressional Review Act
For purposes of Congressional Review
Act (CRA), OMB makes a determination
as to whether a final rule constitutes a
‘‘major’’ rule.28 If a rule is deemed a
‘‘major rule’’ by the OMB, the CRA
generally provides that the rule may not
take effect until at least 60 days
following its publication.29
The CRA defines a ‘‘major rule’’ as
any rule that the Administrator of the
Office of Information and Regulatory
Affairs of the OMB finds has resulted in
or is likely to result in (1) an annual
effect on the economy of $100,000,000
or more; (2) a major increase in costs or
prices for consumers, individual
industries, Federal, State, or local
government agencies or geographic
regions, or (3) significant adverse effects
on competition, employment,
investment, productivity, innovation, or
on the ability of United States-based
enterprises to compete with foreign-
based enterprises in domestic an
economy of $100,000,000
or more; (2) a major increase in costs or
prices for consumers, individual
industries, Federal, State, or local
government agencies or geographic
regions, or (3) significant adverse effects
on competition, employment,
investment, productivity, innovation, or
on the ability of United States-based
enterprises to compete with foreign-
based enterprises in domestic and
export markets.30
For the same reasons set forth above,
the agencies are adopting the interim
final rule without the delayed effective
date generally prescribed under the
CRA. The delayed effective date
required by the CRA does not apply to
any rule for which an agency for good
cause finds (and incorporates the
finding and a brief statement of reasons
therefor in the rule issued) that notice
and public procedure thereon are
impracticable, unnecessary, or contrary
to the public interest. In light of current
market uncertainty and because
community banking organizations may
start incurring transition costs prior to
the end of 2020 in anticipation of
needing to comply with additional
requirements starting as early as
December 31, 2020, the agencies believe
that delaying the effective date of the
rule would be contrary to the public
interest.
As required by the CRA, the agencies
will submit the final rule and other
appropriate reports to Congress and the
Government Accountability Office for
review.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA) states that no agency may
conduct or sponsor, nor is a respondent
required to respond to, an information
collection unless it displays a currently
valid OMB control number.31 The
interim final rule affects the agencies’
current information collections for the
Call Reports (FFIEC 031, FFIEC 041, and
FFIEC 051). The OMB control numbers
for the Call Reports of the agencies are:
OCC OMB No. 1557–0081; Board OMB
No. 7100–0036; and FDIC OMB No.
3064–0052
nt
required to respond to, an information
collection unless it displays a currently
valid OMB control number.31 The
interim final rule affects the agencies’
current information collections for the
Call Reports (FFIEC 031, FFIEC 041, and
FFIEC 051). The OMB control numbers
for the Call Reports of the agencies are:
OCC OMB No. 1557–0081; Board OMB
No. 7100–0036; and FDIC OMB No.
3064–0052.
For purposes of the Call Reports, any
change resulting from the relief
provided by this interim final rule
should be minimal and result in a zero
net change in hourly burden under the
agencies’ information collections.
Submissions will, however, be made by
the agencies to OMB. The changes to the
instructions of the Call Reports will be
addressed in a separate Federal Register
notice.
In addition, this interim final rule
does not introduce any new information
collections. It does, however,
temporarily impact the following
information collections: FR Y–9
Reports; FR Y–11; FR Y–11S; FR Y–7N;
FR Y–7NS; FR 2314; and FR 2314S. The
Board has reviewed this interim final
rule pursuant to authority delegated by
the OMB. The Board has temporarily
revised the instructions for these
information collections to reflect
changes made in the interim final rule.
On June 15, 1984, OMB delegated to
the Board authority under the PRA to
approve a temporary revision to a
collection of information without
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The Board has temporarily
revised the instructions for these
information collections to reflect
changes made in the interim final rule.
On June 15, 1984, OMB delegated to
the Board authority under the PRA to
approve a temporary revision to a
collection of information without
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providing opportunity for public
comment if the Board determines that a
change in an existing collection must be
instituted quickly and that public
participation in the approval process
would defeat the purpose of the
collection or substantially interfere with
the Board’s ability to perform its
statutory obligation.
The Board’s delegated authority
requires that the Board, after
temporarily approving a collection,
solicit public comment on a proposal to
extend the temporary collection for a
period not to exceed three years.
Therefore, the Board is inviting
comment on a proposal to extend these
information collections for three years
with such revisions. The Board invites
public comment on the information
collections, which are being reviewed
under authority delegated by the OMB
under the PRA. Comments are invited
on the following:
a. Whether the collections of
information are necessary for the proper
performance of the Board’s functions,
including whether the information has
practical utility;
b. The accuracy of the Board’s
estimate of the burden of the proposed
information collections, including the
validity of the methodology and
assumptions used;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected;
d. Ways to minimize the burden of
information collection on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
e
f the burden of the proposed
information collections, including the
validity of the methodology and
assumptions used;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected;
d. Ways to minimize the burden of
information collection on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
e. Estimates of capital or startup costs
and costs of operation, maintenance,
and purchase of services to provide
information.
Comments must be submitted on or
before February 1, 2021. At the end of
the comment period, the comments and
recommendations received will be
analyzed to determine the extent to
which the Board should modify the
information collection.
Approval Under OMB Delegated
Authority of the Temporary Revision of,
and Proposal To Extend for Three Years,
With Revision, the Following
Information Collections
1. Report Title: Financial Statements for
Holding Companies
Agency form number: FR Y–9C, FR Y–
9LP, FR Y–9SP, FR Y–9ES, and FR Y–
9CS.
OMB control number: 7100–0128.
Effective date: December 2, 2020.
Frequency: Quarterly, semiannually,
and annually.
Respondents: Bank holding
companies, savings and loan holding
companies, securities holding
companies, and U.S. intermediate
holding companies (collectively,
holding companies).
Estimated number of respondents: FR
Y–9C (non-advanced approaches
community bank leverage ratio holding
companies with less than $5 billion in
total assets): 71; FR Y–9C (non-
advanced approaches community bank
leverage ratio holding companies with
$5 billion or more in total assets): 35; FR
Y–9C (non-advanced approaches, non-
community bank leverage ratio, holding
companies with less than $5 billion in
total assets): 84; FR Y–9C (non-
advanced approaches, non-community
bank leverage ratio holding companies,
with $5 billion or more in total assets):
154; FR Y–9C (advanced approaches
holding companies): 19; FR Y–9LP: 434;
FR Y–9SP: 3,960; FR
n or more in total assets): 35; FR
Y–9C (non-advanced approaches, non-
community bank leverage ratio, holding
companies with less than $5 billion in
total assets): 84; FR Y–9C (non-
advanced approaches, non-community
bank leverage ratio holding companies,
with $5 billion or more in total assets):
154; FR Y–9C (advanced approaches
holding companies): 19; FR Y–9LP: 434;
FR Y–9SP: 3,960; FR Y–9ES: 83; FR Y–
9CS: 236.
Estimated annual burden hours:
Reporting
FR Y–9C (non-advanced approaches
community bank leverage ratio holding
companies with less than $5 billion in
total assets): 8,284 hours; FR Y–9C (non-
advanced approaches community bank
leverage ratio holding companies with
$5 billion or more in total assets): 4,920;
FR Y–9C (non-advanced approaches
non community bank leverage ratio
holding companies with less than $5
billion in total assets): 13,779; FR Y–9C
(non-advanced approaches non-
community bank leverage ratio holding
companies with $5 billion or more in
total assets): 28,940 hours; FR Y–9C
(advanced approaches holding
companies): 3,747 hours; FR Y–9LP:
9,149 hours; FR Y–9SP: 42,768 hours;
FR Y–9ES: 42 hours; FR Y–9CS: 472
hours.
Recordkeeping
FR Y–9C (non-advanced approaches
holding companies with less than $5
billion in total assets): 620 hours; FR Y–
9C (non-advanced approaches holding
companies with $5 billion or more in
total assets): 756 hours; FR Y–9C
(advanced approaches holding
companies): 76 hours; FR Y–9LP: 1,736
hours; FR Y–9SP: 3,960 hours; FR Y–
9ES: 42 hours; FR Y–9CS: 472 hours.
General description of report: The FR
Y–9 family of reporting forms continues
to be the primary source of financial
data on holding companies that
examiners rely on in the intervals
between on-site inspections
ore in
total assets): 756 hours; FR Y–9C
(advanced approaches holding
companies): 76 hours; FR Y–9LP: 1,736
hours; FR Y–9SP: 3,960 hours; FR Y–
9ES: 42 hours; FR Y–9CS: 472 hours.
General description of report: The FR
Y–9 family of reporting forms continues
to be the primary source of financial
data on holding companies that
examiners rely on in the intervals
between on-site inspections. Financial
data from these reporting forms are used
to detect emerging financial problems,
to review performance and conduct pre-
inspection analysis, to monitor and
evaluate capital adequacy, to evaluate
holding company mergers and
acquisitions, and to analyze a holding
company’s overall financial condition to
ensure the safety and soundness of its
operations. The FR Y–9C, FR Y–9LP,
and FR Y–9SP serve as standardized
financial statements for the consolidated
holding company. The Board requires
holding companies to provide
standardized financial statements to
fulfill the Board’s statutory obligation to
supervise these organizations. The FR
Y–9ES is a financial statement for
holding companies that are Employee
Stock Ownership Plans. The Board uses
the voluntary FR Y–9CS (a free-form
supplement) to collect additional
information deemed to be critical and
needed in an expedited manner.
Holding companies file the FR Y–9C
quarterly, the FR Y–9LP quarterly, the
FR Y–9SP semiannually, the FR Y–9ES
annually, and the FR Y–9CS on a
schedule that is determined when this
supplement is used.
Legal authorization and
confidentiality: The Board has the
authority to impose the reporting and
recordkeeping requirements associated
with the FR Y–9 family of reports on
bank holding companies pursuant to
section 5 of the BHC Act, (12 U.S.C.
1844); on savings and loan holding
companies pursuant to section 10(b)(2)
and (3) of the Home Owners’ Loan Act,
(12 U.S.C. 1467a(b)(2) and (3)); on U.S
authorization and
confidentiality: The Board has the
authority to impose the reporting and
recordkeeping requirements associated
with the FR Y–9 family of reports on
bank holding companies pursuant to
section 5 of the BHC Act, (12 U.S.C.
1844); on savings and loan holding
companies pursuant to section 10(b)(2)
and (3) of the Home Owners’ Loan Act,
(12 U.S.C. 1467a(b)(2) and (3)); on U.S.
intermediate holding companies
pursuant to section 5 of the BHC Act,
(12 U.S.C 1844), as well as pursuant to
sections 102(a)(1) and 165 of the Dodd-
Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act), (12
U.S.C. 511(a)(1) and 5365); and on
securities holding companies pursuant
to section 618 of the Dodd-Frank Act,
(12 U.S.C. 1850a(c)(1)(A)). The FR Y–9
series of reports, and the recordkeeping
requirements set forth in the respective
instructions to each report, are
mandatory, except for the FR Y–9CS,
which is voluntary.
With respect to the FR Y–9C,
Schedule HI Memoranda item 7.g,
Schedule HC–P item 7.a, and Schedule
HC–P item 7.b are considered
confidential commercial and financial
information under exemption 4 of the
Freedom of Information Act (FOIA), (5
U.S.C. 552(b)(4)), as is Schedule HC
Memoranda item 2.b for both the FR Y–
9C and FR Y–9SP reports. Such
treatment is appropriate under
exemption 4 of the FOIA (5 U.S.C.
552(b)(4)) because these data items
reflect commercial and financial
information that is both customarily and
actually treated as private by the
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emoranda item 2.b for both the FR Y–
9C and FR Y–9SP reports. Such
treatment is appropriate under
exemption 4 of the FOIA (5 U.S.C.
552(b)(4)) because these data items
reflect commercial and financial
information that is both customarily and
actually treated as private by the
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Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations
32 See 12 U.S.C. 1464(v)(2).
33 Exemption 8 of the Freedom of Information Act
(FOIA) specifically exempts from disclosure
information ‘‘contained in or related to
examination, operating, or condition reports
prepared by, on behalf of, or for the use of an
agency responsible for the regulation or supervision
of financial institutions.’’
submitter, and which the Board has
previously assured submitters will be
treated as confidential. It also appears
that disclosing these data items may
reveal confidential examination and
supervisory information, and in such
instances, this information would also
be withheld pursuant to exemption 8 of
the FOIA (5 U.S.C. 552(b)(8)), which
protects information related to the
supervision or examination of a
regulated financial institution.
In addition, for both the FR Y–9C
report and the FR Y–9SP report,
Schedule HC Memoranda item 2.b, the
name and email address of the external
auditing firm’s engagement partner, is
considered confidential commercial
information and protected by exemption
4 of the FOIA (5 U.S.C. 552(b)(4)) if the
identity of the engagement partner is
treated as private information by
holding companies. The Board has
assured respondents that this
information will be treated as
confidential since the collection of this
data item was proposed in 2004
iting firm’s engagement partner, is
considered confidential commercial
information and protected by exemption
4 of the FOIA (5 U.S.C. 552(b)(4)) if the
identity of the engagement partner is
treated as private information by
holding companies. The Board has
assured respondents that this
information will be treated as
confidential since the collection of this
data item was proposed in 2004.
Additionally, items on the FR Y–9C,
Schedule HC–C regarding loans
modified under Section 4013
(Memoranda item 16.a, ‘‘Number of
Section 4013 loans outstanding’’, and
Memoranda item 16.b, ‘‘Outstanding
balance of Section 4013 loans’’) are
considered confidential. While the
Board generally makes institution-level
FR Y–9C report data publicly available,
the Board believes the disclosure of
these items at the holding company
level would not be in the public
interest.32 Such information is
permitted to be collected on a
confidential basis, consistent with 5
U.S.C. 552(b)(8).33 Holding companies
may be reluctant to offer modifications
under Section 4013 if information on
these modifications is publicly
available, as analysts, investors, and
other users of public FR Y–9C report
information may penalize an institution
for using the relief provided by the
CARES Act.
Aside from the data items described
above, the remaining data items on the
FR Y–9 report and the FR Y–9SP report
are generally not accorded confidential
treatment. The data items collected on
FR Y–9LP, FR Y–9ES, and FR Y–9CS
reports, are also generally not accorded
confidential treatment. As provided in
the Board’s Rules Regarding Availability
of Information (12 CFR part 261),
however, a respondent may request
confidential treatment for any data
items the respondent believes should be
withheld pursuant to a FOIA
exemption. The Board will review any
such request to determine if confidential
treatment is appropriate, and will
inform the respondent if the request for
confidential treatment has been denied
s Regarding Availability
of Information (12 CFR part 261),
however, a respondent may request
confidential treatment for any data
items the respondent believes should be
withheld pursuant to a FOIA
exemption. The Board will review any
such request to determine if confidential
treatment is appropriate, and will
inform the respondent if the request for
confidential treatment has been denied.
To the extent that the instructions to
the FR Y–9C, FR Y–9LP, FR Y–9SP, and
FR Y–9ES reports each respectively
direct a financial institution to retain
the workpapers and related materials
used in preparation of each report, such
material would only be obtained by the
Board as part of the examination or
supervision of the financial institution.
Accordingly, such information may be
considered confidential pursuant to
exemption 8 of the FOIA (5 U.S.C.
552(b)(8)). In addition, the financial
institution’s workpapers and related
materials may also be protected by
exemption 4 of the FOIA, to the extent
such financial information is treated as
confidential by the respondent (5 U.S.C.
552(b)(4)).
2. Report Title: Financial Statements of
U.S. Nonbank Subsidiaries of U.S.
Holding Companies and Abbreviated
Financial Statements of U.S Nonbank
Subsidiaries of U.S. Holding Companies
Agency form number: FR Y–11 and
FR Y–11S.
OMB control number: 7100–0244.
Effective date: December 2, 2020.
Frequency: Quarterly and annually.
Respondents: Domestic bank holding
companies, savings and loan holding
companies, securities holding
companies, and intermediate holding
companies.
Estimated number of respondents: FR
Y–11 (quarterly): 445; FR Y–11
(annually): 189; FR Y–11S: 273.
Estimated annual burden hours: FR
Y–11 (quarterly): 13,528 hours; FR Y–11
(annually): 1,436 hours; FR Y–11S: 273
hours.
General description of report: The FR
Y–11 family of reports collects financial
information for individual U.S
ies holding
companies, and intermediate holding
companies.
Estimated number of respondents: FR
Y–11 (quarterly): 445; FR Y–11
(annually): 189; FR Y–11S: 273.
Estimated annual burden hours: FR
Y–11 (quarterly): 13,528 hours; FR Y–11
(annually): 1,436 hours; FR Y–11S: 273
hours.
General description of report: The FR
Y–11 family of reports collects financial
information for individual U.S. nonbank
subsidiaries of domestic holding
companies, which is essential for
monitoring the subsidiaries’ potential
impact on the condition of the holding
company or its subsidiary banks.
Holding companies file the FR Y–11 on
a quarterly or annual basis or the FR Y–
11S on an annual basis, predominantly
based on whether the organization
meets certain asset size thresholds.
Legal authorization and
confidentiality: The Board has the
authority to require bank holding
companies and any subsidiary thereof,
savings and loan holding companies
and any subsidiary thereof, and
securities holding companies and any
affiliate thereof to file the FR Y–11
pursuant to, respectively, section 5(c) of
the BHC Act (12 U.S.C. 1844(c)), section
10(b) of the Homeowners’ Loan Act (12
U.S.C. 1467a(b)), and section 618 of the
Dodd-Frank Act (12 U.S.C. 1850a).
Information collected in these reports
generally is not considered confidential.
However, because the information is
collected as part of the Board’s
supervisory process, certain information
may be afforded confidential treatment
pursuant to exemption 8 of the FOIA (5
U.S.C. 552(b)(8)). Individual
respondents may request that certain
data be afforded confidential treatment
pursuant to exemption 4 of the FOIA if
the data has not previously been
publically disclosed and the release of
the data would likely cause substantial
harm to the competitive position of the
respondent (5 U.S.C. 552(b)(4))
nfidential treatment
pursuant to exemption 8 of the FOIA (5
U.S.C. 552(b)(8)). Individual
respondents may request that certain
data be afforded confidential treatment
pursuant to exemption 4 of the FOIA if
the data has not previously been
publically disclosed and the release of
the data would likely cause substantial
harm to the competitive position of the
respondent (5 U.S.C. 552(b)(4)).
Additionally, individual respondents
may request that personally identifiable
information be afforded confidential
treatment pursuant to exemption 6 of
the FOIA if the release of the
information would constitute a clearly
unwarranted invasion of personal
privacy (5 U.S.C. 552(b)(6)). The
applicability of the FOIA exemptions 4
and 6 would be determined on a case-
by-case basis.
3. Report Title: The Financial
Statements of U.S. Nonbank
Subsidiaries Held by Foreign Banking
Organizations, Abbreviated Financial
Statements of U.S. Nonbank
Subsidiaries Held by Foreign Banking
Organizations, and the Capital and
Asset Report of Foreign Banking
Organizations
Agency form number: FR Y–7N, FR
Y–7NS, and FR Y–7Q.
OMB control number: 7100–0125.
Effective date: December 2, 2020.
Frequency: Quarterly and annually.
Respondents: Foreign banking
organizations.
Estimated number of respondents: FR
Y–7N (quarterly): 35; FR Y–7N
(annually): 19; FR Y–7NS: 22; FR Y–7Q
(quarterly): 130; FR Y–7Q (annually):
29.
Estimated annual burden hours: FR
Y–7N (quarterly): 1,064 hours; FR Y–7N
(annually): 144 hours; FR Y–7NS: 22
hours; FR Y–7Q (quarterly): 1,560 hours;
FR Y–7Q (annually): 44 hours.
General description of report: The FR
Y–7N and the FR Y–7NS are used to
assess a foreign banking organization’s
ability to be a continuing source of
strength to its U.S. nonbank operations
and to determine compliance with U.S.
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erly): 1,560 hours;
FR Y–7Q (annually): 44 hours.
General description of report: The FR
Y–7N and the FR Y–7NS are used to
assess a foreign banking organization’s
ability to be a continuing source of
strength to its U.S. nonbank operations
and to determine compliance with U.S.
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Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations
laws and regulations. Foreign banking
organizations file the FR Y–7N quarterly
or annually, or the FR Y–7NS annually,
predominantly based on asset size
thresholds. The FR Y–7Q is used to
assess consolidated regulatory capital
and asset information from all foreign
banking organizations. The FR Y–7Q is
filed quarterly by foreign banking
organizations that have effectively
elected to become or be treated as a U.S.
financial holding company and by
foreign banking organizations that have
total consolidated assets of $50 billion
or more, regardless of financial holding
company status. All other foreign
banking organizations file the FR Y–7Q
annually.
Legal authorization and
confidentiality: With respect to foreign
banking organizations and their
subsidiary intermediate holding
companies, section 5(c) of the BHC Act,
in conjunction with section 8 of the
International Banking Act (12 U.S.C.
3106), authorizes the board to require
foreign banking organizations and any
subsidiary thereof to file the FR Y–7N
reports, and the FR Y–7Q. Information
collected in these reports generally is
not considered confidential. However,
because the information is collected as
part of the Board’s supervisory process,
certain information may be afforded
confidential treatment pursuant to
exemption 8 of the FOIA (5 U.S.C.
552(b)(8))
foreign banking organizations and any
subsidiary thereof to file the FR Y–7N
reports, and the FR Y–7Q. Information
collected in these reports generally is
not considered confidential. However,
because the information is collected as
part of the Board’s supervisory process,
certain information may be afforded
confidential treatment pursuant to
exemption 8 of the FOIA (5 U.S.C.
552(b)(8)). Individual respondents may
request that certain data be afforded
confidential treatment pursuant to
exemption 4 of the FOIA if the data has
not previously been publicly disclosed
and the release of the data would likely
cause substantial harm to the
competitive position of the respondent
(5 U.S.C. 552(b)(4)). Additionally,
individual respondents may request that
personally identifiable information be
afforded confidential treatment
pursuant to exemption 6 of the FOIA if
the release of the information would
constitute a clearly unwarranted
invasion of personal privacy (5 U.S.C.
552(b)(6)). The applicability of the FOIA
exemptions 4 and 6 would be
determined on a case-by-case basis.
4. Report Title: Financial Statements of
Foreign Subsidiaries of U.S. Banking
Organizations and the Abbreviated
Financial Statements of Foreign
Subsidiaries of U.S. Banking
Organizations
Agency form number: FR 2314 and FR
2314S.
OMB control number: 7100–0073.
Effective date: December 2, 2020.
Frequency: Quarterly and annually.
Respondents: U.S. state member
banks, bank holding companies, savings
and loan holding companies,
intermediate holding companies, and
Edge or agreement corporations.
Estimated number of respondents: FR
2314 (quarterly): 439; FR 2314
(annually): 239; FR 2314S: 300.
Estimated annual burden hours: FR
2314 (quarterly): 12,643 hours; FR 2314
(annually): 1,768 hours; FR 2314S: 300
hours
lly.
Respondents: U.S. state member
banks, bank holding companies, savings
and loan holding companies,
intermediate holding companies, and
Edge or agreement corporations.
Estimated number of respondents: FR
2314 (quarterly): 439; FR 2314
(annually): 239; FR 2314S: 300.
Estimated annual burden hours: FR
2314 (quarterly): 12,643 hours; FR 2314
(annually): 1,768 hours; FR 2314S: 300
hours.
General description of report: The FR
2314 family of reports is the only source
of comprehensive and systematic data
on the assets, liabilities, and earnings of
the foreign nonbank subsidiaries of U.S.
banking organizations, and the data are
used to monitor the growth,
profitability, and activities of these
foreign companies. The data help the
Board identify present and potential
problems of these companies, monitor
their activities in specific countries, and
develop a better understanding of
activities within the industry and
within specific institutions. Parent
organizations (state member banks, Edge
and agreement corporations, or holding
companies) file the FR 2314 on a
quarterly or annual basis, or the FR
2314S on an annual basis,
predominantly based on whether the
organization meets certain asset size
thresholds.
Legal authorization and
confidentiality: The Board has the
authority to require bank holding
companies and any subsidiary thereof,
savings and loan holding companies
and any subsidiary thereof, and
securities holding companies and any
affiliate thereof to file the FR 2314
pursuant to, respectively, section 5(c) of
the BHC Act (12 U.S.C. 1844(c)), section
10(b) of the Homeowners’ Loan Act (12
U.S.C. 1467a(b)), and section 618 of the
Dodd-Frank Act (12 U.S.C. 1850a). The
Board has the authority to require state
member banks, agreement corporations,
and Edge corporations to file the FR
2314 pursuant to, respectively, sections
9(6), 25(7), and 25A(17) of the Federal
Reserve Act (12 U.S.C. 324, 602, and
625)
C Act (12 U.S.C. 1844(c)), section
10(b) of the Homeowners’ Loan Act (12
U.S.C. 1467a(b)), and section 618 of the
Dodd-Frank Act (12 U.S.C. 1850a). The
Board has the authority to require state
member banks, agreement corporations,
and Edge corporations to file the FR
2314 pursuant to, respectively, sections
9(6), 25(7), and 25A(17) of the Federal
Reserve Act (12 U.S.C. 324, 602, and
625). With respect to foreign banking
organizations and their subsidiary
intermediate holding companies,
section 5(c) of the BHC Act, in
conjunction with section 8 of the
International Banking Act (12 U.S.C.
3106), authorizes the board to require
foreign banking organizations and any
subsidiary thereof to file the FR 2314
reports. These reports are mandatory.
Information collected in these reports
generally is not considered confidential.
However, because the information is
collected as part of the Board’s
supervisory process, certain information
may be afforded confidential treatment
pursuant to exemption 8 of the FOIA (5
U.S.C. 552(b)(8)). Individual
respondents may request that certain
data be afforded confidential treatment
pursuant to exemption 4 of the FOIA if
the data has not previously been
publically disclosed and the release of
the data would likely cause substantial
harm to the competitive position of the
respondent (5 U.S.C. 552(b)(4)).
Additionally, individual respondents
may request that personally identifiable
information be afforded confidential
treatment pursuant to exemption 6 of
the FOIA if the release of the
information would constitute a clearly
unwarranted invasion of personal
privacy (5 U.S.C. 552(b)(6)). The
applicability of the FOIA exemptions 4
and 6 would be determined on a case-
by-case basis
52(b)(4)).
Additionally, individual respondents
may request that personally identifiable
information be afforded confidential
treatment pursuant to exemption 6 of
the FOIA if the release of the
information would constitute a clearly
unwarranted invasion of personal
privacy (5 U.S.C. 552(b)(6)). The
applicability of the FOIA exemptions 4
and 6 would be determined on a case-
by-case basis.
Current actions: The interim final rule
adjusts for community banking
organizations the measurement dates for
certain total asset thresholds that would
otherwise trigger additional information
collection requirements for the
remainder of calendar years 2020
through the end of 2021. The temporary
relief applies only to filing requirements
associated with asset-based reporting
thresholds of $10 billion or less. Table
1 of the interim final rule contains a
summary of affected reports, reporting
applicability for 2020–2021, and the
dates for determining reporting
requirements for 2022.
To implement the interim final rule,
the Board is temporarily revising the
instructions for the following reports:
FR Y–9C, FR Y–9LP, FR Y–11, FR Y–
11S, FR Y–7N, FR Y–7NS, FR 2314, and
FR 2314S. The revised instructions
instruct community banking
organizations to use the lesser of total
assets as of December 31, 2019, or the
most recent applicable measurement
period to determine the applicability of
asset-based filing thresholds for the
remainder of calendar years 2020
through the end of 2021. All reporting
eligibility criteria for these information
collections, besides the temporarily
revised total assets measurement date,
continue to apply. Financial institutions
must revert back to normal rules for
determining applicability of the
reporting requirements in calendar year
2022, as summarized in Table 1
resholds for the
remainder of calendar years 2020
through the end of 2021. All reporting
eligibility criteria for these information
collections, besides the temporarily
revised total assets measurement date,
continue to apply. Financial institutions
must revert back to normal rules for
determining applicability of the
reporting requirements in calendar year
2022, as summarized in Table 1.
The Board believes the changes to the
measurement dates for the total asset
thresholds used to determine additional
reporting requirements will not result in
a change in the burden estimates
currently approved by OMB. Therefore,
the burden estimates for these reports
remain unchanged by the interim final
rule.
The FR Y–9C instructions currently
contain filing thresholds of $5 billion
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Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations
and $10 billion that trigger the reporting
of additional schedules and the
reporting of certain data items at a
higher frequently. These thresholds
would be impacted by the changes in
the interim final rule. Whether
additional FR Y–9C requirements apply
would normally be based on total
consolidated assets as of June 30 of the
prior year. With the revisions in the
interim final rule, community banking
organizations may instead use the lesser
of total consolidated assets as of
December 31, 2019, or June 30, 2020, to
determine whether additional filing
requirements are applicable
im final rule. Whether
additional FR Y–9C requirements apply
would normally be based on total
consolidated assets as of June 30 of the
prior year. With the revisions in the
interim final rule, community banking
organizations may instead use the lesser
of total consolidated assets as of
December 31, 2019, or June 30, 2020, to
determine whether additional filing
requirements are applicable.
Specifically, the additional filing
requirements for the FR Y–9C that
would otherwise be triggered by the $5
billion and $10 billion threshold are as
follows:
• The $5 billion threshold requires
these holding companies to report
Schedule HI–C, Part I, Disaggregated
Data on the Allowance for Loan and
Lease Losses; Schedule HC–D, Trading
Assets and Liabilities; Schedule HC–P,
1–4 Family Residential Mortgage
Banking Activities in Domestic Offices;
Schedule HC–Q, Assets and Liabilities
Measured at Fair Value; Schedule HC–
S, Servicing, Securitization, and Asset
Sale Activities; and Schedule HC–V,
Variable Interest Entities.
• The $5 billion threshold requires
these holding companies to report
Schedule HI item 1.e, interest income
from trading assets; Schedule HI item
2.c, interest on trading liabilities and
other borrowed money; Schedule HI
item 2.d, interest on subordinated notes
and debentures and on mandatory
convertible securities; Schedule HI item
5.c, trading revenue; Schedule HI items
5.d.(1) through 5.d.(5), related to various
fees and commissions on securities
brokerage investments, investment
banking, and insurance; Schedule HI
item 5.e, venture capital revenue;
Schedule HI item 5.g, net securitization
income; Schedule HI Memoranda item
1, net interest income on a fully taxable
equivalent basis; Schedule HI
Memoranda item 2, net income before
applicable income taxes, and
discontinued operations; Schedule HI
Memoranda items 8.a.(1) through
8.b.(2), discontinued operations and
applicable income tax effect; Schedule
HI Memoranda items 9.a through 9.e,
related to trading r
securitization
income; Schedule HI Memoranda item
1, net interest income on a fully taxable
equivalent basis; Schedule HI
Memoranda item 2, net income before
applicable income taxes, and
discontinued operations; Schedule HI
Memoranda items 8.a.(1) through
8.b.(2), discontinued operations and
applicable income tax effect; Schedule
HI Memoranda items 9.a through 9.e,
related to trading revenue; Schedule HI
Memoranda item 11, credit losses on
derivatives; Schedule HI Memoranda
items 12.a through 12.c, detail
pertaining to income from the sale and
servicing of mutual funds and annuities
(in domestic offices); Schedule HI
Memoranda items 14.a. through 14.b.(1),
related to net gains (losses) recognized
in earnings on assets and liabilities that
are reported at fair value under a fair
value option; Schedule HI Memoranda
item 15, stock-based employee
compensation expense; Schedule HI–B,
Part I, items 4.a and 4.b, columns A and
B, commercial and industrial loans;
Schedule HI–B, Part I, item 6, columns
A and B, loans to foreign governments
and official institutions; Schedule HI–B,
Part I, items 8.a and 8.b, lease finance
receivables; Schedule HI–B, Part I,
Memoranda item 2, columns A and B,
loans secured by real estate to non-U.S.
addressees; Schedule HI–B, Part I,
Memoranda item 3, uncollectible retail
credit card fees and finance charges
reversed against income; Schedule HI–
B, Part II, Memoranda item 1, allocated
transfer risk reserve; Schedule HI–B,
Part II, Memoranda item 2, separate
valuation allowance for uncollectible
retail credit card fees and finance
charges; Schedule HI–B, Part II,
Memoranda item 3, allowance for loan
and lease losses attributable to retail
credit card fees and finance charges;
Schedule HI–B, Part II, Memoranda item
4, allowance for post-acquisition credit
losses on purchased credit-impaired
loans; Schedule HC–B, items 4.a.(1)
through 4.a.(3), residential pass-through
securities; Schedule HC–C, items 4.a
and 4.b, commercial and industrial
l
rt II,
Memoranda item 3, allowance for loan
and lease losses attributable to retail
credit card fees and finance charges;
Schedule HI–B, Part II, Memoranda item
4, allowance for post-acquisition credit
losses on purchased credit-impaired
loans; Schedule HC–B, items 4.a.(1)
through 4.a.(3), residential pass-through
securities; Schedule HC–C, items 4.a
and 4.b, commercial and industrial
loans; Schedule HC–C, items 9.b.(1)
through 9.b.(2), column A and B, loans
for purchasing or carrying securities and
all other loans; Schedule HC–C, items
10.a and 10.b, column A, lease financing
receivables; Schedule HC–C Memoranda
items 1.e.(1) and 1.e.(2), commercial and
industrial loans; Schedule HC–C
Memoranda item 3, loans secured by
real estate to non-U.S. addressees;
Schedule HC–C Memoranda item 4,
outstanding credit card fees and finance
charges; Schedule HC–C Memoranda
items 12.a through 12.d, loans and
leases held for investment (not subject
to the requirements of FASB ASC 310–
30) that are acquired in business
combinations with acquisition dates in
the current calendar year; Schedule HC–
K, item 4.a, trading assets; Schedule
HC–L item 1.b.(1), unused consumer
credit card lines; Schedule HC–L 1.b.(2),
other unused credit card lines; Schedule
HC–L item 1.d, securities underwriting;
Schedule HC–L items 2.a and 3.a,
financial and performance standby
letters of credit conveyed to others;
Schedule HC–L items 7.a through
7.d.(2)(b), related to credit derivatives;
Schedule HC–L items 11.a through
14.b.(2), pertaining to derivatives
positions; Schedule HC–M items
6.a.(1)(a)(1) through 6.d, pertaining to
assets covered by loss-sharing
agreements with the Federal Deposit
Insurance Corporation; Schedule HC–N,
items 8.a and 8.b, columns A, B, and C;
Schedule HC–N items 12.a.(1)(a)
through 12.f, pertaining to loans and
leases which are covered by loss-sharing
agreements with the Federal Deposit
Insurance Corporation; Schedule HC–N
Memoranda items 1.e.(1) and 1.e.(2),
columns A, B,
ining to
assets covered by loss-sharing
agreements with the Federal Deposit
Insurance Corporation; Schedule HC–N,
items 8.a and 8.b, columns A, B, and C;
Schedule HC–N items 12.a.(1)(a)
through 12.f, pertaining to loans and
leases which are covered by loss-sharing
agreements with the Federal Deposit
Insurance Corporation; Schedule HC–N
Memoranda items 1.e.(1) and 1.e.(2),
columns A, B, and C, commercial and
industrial loans; and Schedule HC–N
Memoranda item 6, fair value of
derivative contract amounts carried as
assets.
• The $5 billion threshold requires
these holding companies to report
quarterly rather than annual Schedule
HI Memoranda items 6.a through 6.j,
other noninterest income; Schedule HI
Memoranda items 7.a through 7.p, other
noninterest expense; and Schedule HI
Memoranda 16, noncash income from
negative amortization on closed-end
loans secured by 1–4 family residential
properties; and quarterly rather than
semi-annual, Schedule HI Memoranda
item 17, other-than-temporary
impairment losses on held-to-maturity
and available-for-sale debt securities
recognized in earnings; Schedule HI–C,
Part II, items 7 through 11,
disaggregated data on the allowance for
credit losses; Schedule HC–C
Memoranda items 1.a.(1) through
1.f.(3)(c), pertaining to loans
restructured in troubled debt
restructurings that are in compliance
with their modified terms; Schedule
HC–N Memoranda items 1.a.(1) through
1.d.(2) and 1.e.(3) through 1.f.(3)(c),
related to loans restructured in troubled
debt restructurings that are in
compliance with their modified terms;
Schedule HC–R, Part II, items 1 through
25, columns A through U, risk-weighted
assets; Schedule HC–R, Part II
Memoranda item 1, current credit
exposure across all derivative contracts;
Schedule HC–R, Part II Memoranda item
2, columns A, B, and C, notional
principal amounts of over-the-counter
derivative contracts; and Schedule HC–
R, Part II, Memoranda item 3, columns
A, B, and C, notional principal amounts
of centrally
ough
25, columns A through U, risk-weighted
assets; Schedule HC–R, Part II
Memoranda item 1, current credit
exposure across all derivative contracts;
Schedule HC–R, Part II Memoranda item
2, columns A, B, and C, notional
principal amounts of over-the-counter
derivative contracts; and Schedule HC–
R, Part II, Memoranda item 3, columns
A, B, and C, notional principal amounts
of centrally cleared derivatives
contracts.
• The $10 billion threshold requires
these holding companies to report
Schedule HI Memoranda items 10.a and
10.b, related to net gains/losses on
credit derivatives; Schedule HC–B
Memoranda items 5.a through 5.f,
related to asset-backed securities;
Schedule HC–B Memoranda items 6.a
through 6.g, related to structured
financial products by underlying
collateral or reference assets; Schedule
HC–L item 15, pertaining to the
additional information on over-the-
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77358
Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations
34 5 U.S.C. 601 et seq.
35 Under regulations issued by the Small Business
Administration, a small entity includes a depository
institution, bank holding company, or savings and
loan holding company with total assets of $600
million or less and trust companies with total assets
of $41.5 million or less. See 13 CFR 121.201.
36 12 U.S.C. 4802(a).
37 12 U.S.C. 4802.
38 Public Law 106–102, 113 Stat. 1338, 1471, 12
U.S.C. 4809.
counter derivatives; and Schedule HC–
S items 6 and 10, and Schedule HC–S
Memoranda item 3, related to
securitization activity. Holding
companies that cross the $10 billion
threshold would be ineligible to opt-in
into the community bank leverage ratio
framework and would be required to file
the additional Schedule HC–R, Part I
and HC–R, Part II line items
at. 1338, 1471, 12
U.S.C. 4809.
counter derivatives; and Schedule HC–
S items 6 and 10, and Schedule HC–S
Memoranda item 3, related to
securitization activity. Holding
companies that cross the $10 billion
threshold would be ineligible to opt-in
into the community bank leverage ratio
framework and would be required to file
the additional Schedule HC–R, Part I
and HC–R, Part II line items.
The Board has determined that the
temporary revisions to these collections
of information must be instituted
quickly and that public participation in
the approval process would defeat the
purpose of the collections. Delaying the
revisions would cause public harm if
firms were adversely affected due to
participating in the PPP or had to bear
temporary compliance costs.
In addition, the Board proposes to
extend the collections of information for
three years with the revisions discussed
above.
D. Regulatory Flexibility Act
The Regulatory Flexibility Act
(RFA) 34 requires an agency to consider
whether the rules it proposes will have
a significant economic impact on a
substantial number of small entities.35
The RFA applies only to rules for which
an agency publishes a general notice of
proposed rulemaking pursuant to 5

[Text truncated at 120,000 characters. The full text is on the page linked above.]

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/FDIC_FIL20108. Check the current official text before relying on it. Not legal advice.