[Federal Register Volume 77, Number 33 (Friday, February 17, 2012)]
[Notices]
[Pages 9727-9731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-3735]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
Agency Information Collection Activities: Submission for OMB
Review; Joint Comment Request
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Notice of information collection to be submitted to OMB for
review and approval under the Paperwork Reduction Act of 1995.
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SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act (PRA) of 1995 (44 U.S.C. chapter 35), the OCC, the Board, and the
FDIC (the ``agencies'') may not conduct or sponsor, and the respondent
is not required to respond to, an information collection unless it
displays a currently valid Office of Management and Budget (OMB)
control number. On November 21, 2011, the agencies, under the auspices
of the Federal Financial Institutions Examination Council (FFIEC),
requested public comment for 60 days on a proposal to extend, with
revision, the Consolidated Reports of Condition and Income (Call
Report), which are currently approved collections of information. After
considering the comments received on
[[Page 9728]]
the proposal, the FFIEC and the agencies will proceed with the
reporting changes and instructional revisions that had been proposed to
take effect March 31, 2012. The FFIEC and the agencies will also
implement the two less detailed Call Report revisions that had been
proposed for implementation as of June 30, 2012. As for the two new
schedules that also had been proposed to be added to the Call Report
beginning June 30, 2012,\1\ the FFIEC and the agencies are continuing
to evaluate these proposed schedules in light of the comments received.
The FFIEC's and the agencies' decisions regarding these two proposed
schedules will be the subject of a separate Federal Register notice and
any resulting new reporting requirements will not take effect before
the September 30, 2012, report date.
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\1\ Schedule RI-C, Disaggregated Data on the Allowance for Loan
and Lease Losses, and Schedule RC-U, Loan Origination Activity (in
Domestic Offices).
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DATES: Comments must be submitted on or before March 19, 2012.
ADDRESSES: Interested parties are invited to submit written comments to
any or all of the agencies on the revisions to the Call Report for
March 31, 2012, and June 30, 2012, for which the agencies are
requesting approval from OMB. All comments, which should refer to the
OMB control number(s), will be shared among the agencies.
OCC: You should direct all written comments to: Communications
Division, Office of the Comptroller of the Currency, Mailstop 2-3,
Attention: 1557-0081, 250 E Street SW., Washington, DC 20219. In
addition, comments may be sent by fax to (202) 874-5274, or by
electronic mail to [email protected]. You may personally
inspect and photocopy comments at the OCC, 250 E Street, SW.,
Washington, DC 20219. For security reasons, the OCC requires that
visitors make an appointment to inspect comments. You may do so by
calling (202) 874-4700. Upon arrival, visitors will be required to
present valid government-issued photo identification and to submit to
security screening in order to inspect and photocopy comments.
Board: You may submit comments, which should refer to
``Consolidated Reports of Condition and Income (FFIEC 031 and 041),''
by any of the following methods:
Agency Web Site: http://www.federalreserve.gov. Follow the
instructions for submitting comments at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include reporting
form number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Jennifer J. Johnson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue NW.,
Washington, DC 20551.
All public comments are available from the Board's Web site at
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons. Accordingly, your comments will
not be edited to remove any identifying or contact information. Public
comments may also be viewed electronically or in paper in Room MP-500
of the Board's Martin Building (20th and C Streets, NW.) between 9 a.m.
and 5 p.m. on weekdays.
FDIC: You may submit comments, which should refer to ``Consolidated
Reports of Condition and Income, 3064-0052,'' by any of the following
methods:
Agency Web Site: http://www.fdic.gov/regulations/laws/federal/propose.html. Follow the instructions for submitting comments
on the FDIC Web site.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include ``Consolidated Reports
of Condition and Income, 3064-0052'' in the subject line of the
message.
Mail: Gary A. Kuiper, Counsel, Attn: Comments, Room F-
1086, Federal Deposit Insurance Corporation, 550 17th Street NW.,
Washington, DC 20429.
Hand Delivery: Comments may be hand delivered to the guard
station at the rear of the 550 17th Street Building (located on F
Street) on business days between 7 a.m. and 5 p.m.
Public Inspection: All comments received will be posted without
change to http://www.fdic.gov/regulations/laws/federal/propose.html
including any personal information provided. Comments may be inspected
at the FDIC Public Information Center, Room E-1002, 3501 Fairfax Drive,
Arlington, VA 22226, between 9 a.m. and 5 p.m. on business days.
Additionally, commenters may send a copy of their comments to the
OMB desk officer for the agencies, Shagufta Ahmed, by mail to the
Office of Information and Regulatory Affairs, U.S. Office of Management
and Budget, New Executive Office Building, Room 10235, 725 17th Street
NW., Washington, DC 20503, or by fax to (202) 395-6974.
INFORMATION CONTACT: For further information about the revisions
discussed in this notice, please contact any of the agency clearance
officers whose names appear below. In addition, copies of the Call
Report forms and instructions can be obtained at the FFIEC's Web site
(http://www.ffiec.gov/ffiec_report_forms.htm).
OCC: Mary Gottlieb, OCC Clearance Officer, (202) 874-5090,
Legislative and Regulatory Activities Division, Office of the
Comptroller of the Currency, 250 E Street SW., Washington, DC 20219.
Board: Cynthia Ayouch, Federal Reserve Board Clearance Officer,
(202) 452-3829, Division of Research and Statistics, Board of Governors
of the Federal Reserve System, 20th and C Streets NW., Washington, DC
20551. Telecommunications Device for the Deaf (TDD) users may call
(202) 263-4869.
FDIC: Gary A. Kuiper, Counsel, (202) 898-3877, Legal Division,
Federal Deposit Insurance Corporation, 550 17th Street NW., Washington,
DC 20429.
SUPPLEMENTARY INFORMATION: The agencies are proposing to revise and
extend for three years the Call Report, which is currently an approved
collection of information for each agency.
Report Title: Consolidated Reports of Condition and Income (Call
Report).
Form Number: Call report: FFIEC 031 (for banks and savings
associations with domestic and foreign offices) and FFIEC 041 (for
banks and savings associations with domestic offices only).
Frequency of Response: Quarterly.
Affected Public: Insured banks and savings associations.
OCC
OMB Number 1557-0081.
Estimated Number of Respondents: 2,035 (1,399 national banks and
636 Federal savings associations).
Estimated Time per Response: National banks: 53.49 burden hours per
quarter to file. Federal savings associations: 53.90 burden hours per
quarter to file and 188 burden hours for the first year to convert
systems and conduct training.
Estimated Total Annual Burden: National banks: 299,350 burden hours
to file. Federal savings associations: 137,120 burden hours to file
plus 119,568 burden hours for the first year to convert systems and
conduct training. Total: 556,038 burden hours.
Board
OMB Number: 7100-0036.
Estimated Number of Respondents: 827 state member banks.
[[Page 9729]]
Estimated Time per Response: 55.52 burden hours per quarter to
file.
Estimated Total Annual Burden: 183,660 burden hours.
FDIC
OMB Number: 3064-0052.
Estimated Number of Respondents: 4,630 (4,570 insured state
nonmember banks and 60 state savings associations).
Estimated Time per Response: State nonmember banks: 40.49 burden
hours per quarter to file. State savings associations: 40.69 burden
hours per quarter to file and 188 burden hours for the first year to
convert systems and conduct training.
Estimated Total Annual Burden: State nonmember banks: 740,157
burden hours to file. State savings associations: 9,766 burden hours to
file plus 11,280 burden hours for the first year to convert systems and
conduct training.
Total: 761,203 burden hours.
The estimated time per response for the quarterly filings of the
Call Report is an average that varies by agency because of differences
in the composition of the institutions under each agency's supervision
(e.g., size distribution of institutions, types of activities in which
they are engaged, and existence of foreign offices). The average
reporting burden for the filing of the Call Report (excluding the
estimated burden for the two new schedules that had been proposed for
implementation in June 2012 but are not part of this submission to OMB
because the FFIEC and the agencies are continuing to evaluate these
proposed schedules) is estimated to range from 17 to 700 hours per
quarter, depending on an individual institution's circumstances.\2\
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\2\ This estimate does not include the burden associated with
the implementation of proposed Schedules RI-C and RC-U.
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As approved by OMB, savings associations will convert from filing
the Thrift Financial Report (TFR) (formerly OMB Number: 1550-0023) to
filing the Call Report effective as of the March 31, 2012, report date
(unless an institution elects to begin filing the Call Report before
that report date).\3\ Thus, savings associations will incur an initial
burden of converting systems and training staff to prepare and file the
Call Report in place of the TFR. Accordingly, the burden estimates
above in this notice for savings associations also include the time to
convert to filing the Call Report, including implementing the necessary
systems changes and training staff on Call Report preparation and
filing, which is estimated to average 188 hours per savings
association.
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\3\ See 76 FR 39981, July 7, 2011, at http://www.ffiec.gov/pdf/FFIEC_forms/FFIEC031_FFIEC041_20110707_ffr.pdf and the Office of
Thrift Supervision's CEO Letter 391 dated July 7, 2011, at
http://www.ots.treas.gov/_files/25391.pdf.
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In general, larger savings associations and those with more complex
operations would likely expend a greater number of hours, on average,
than smaller savings associations and those with less complex
operations. A savings association's use of service providers for the
information and accounting support of key functions, such as credit
processing, transaction processing, deposit and customer information,
general ledger, and reporting should result in lower burden hours for
converting to the Call Report. Savings associations with staff having
experience in preparing and filing the Call Report should incur lower
initial burden hours for converting to the Call Report from the TFR.
For further information about the estimated initial burden hours for
savings associations' conversion to the Call Report from the TFR, see
76 FR 39986, July 7, 2011.
Type of Review: Revision and extension of currently approved
collections.
General Description of Reports
These information collections are mandatory: 12 U.S.C. 161 (for
national banks), 12 U.S.C. 324 (for state member banks), 12 U.S.C. 1817
(for insured state nonmember commercial and savings banks), and 12
U.S.C. 1464 (for Federal and state savings associations). At present,
except for selected data items, these information collections are not
given confidential treatment.
Abstract
Institutions submit Call Report data to the agencies each quarter
for the agencies' use in monitoring the condition, performance, and
risk profile of individual institutions and the industry as a whole.
Call Report data provide the most current statistical data available
for evaluating institutions' corporate applications, for identifying
areas of focus for both on-site and off-site examinations, and for
monetary and other public policy purposes. The agencies use Call Report
data in evaluating interstate merger and acquisition applications to
determine, as required by law, whether the resulting institution would
control more than ten percent of the total amount of deposits of
insured depository institutions in the United States. Call Report data
are also used to calculate institutions' deposit insurance and
Financing Corporation assessments and national banks' and Federal
savings associations' semiannual assessment fees.
Current Actions
On November 21, 2011, the agencies requested comment on a limited
number of proposed revisions to the Call Report (76 FR 72035) for
implementation in 2012 that are focused primarily on institutions with
$1 billion or more in total assets. The new data items were proposed to
be added to the Call Report as of the June 30, 2012, report date,
except for two proposed revisions that would take effect March 31,
2012, in connection with the initial filing of Call Reports by savings
associations. These proposed new data items are intended to provide
data needed for reasons of safety and soundness or other public
purposes and would assist the agencies in gaining a better
understanding of institutions' lending activities and credit risk
exposures. The agencies also proposed certain revisions to the Call
Report instructions that would take effect March 31, 2012.
The Call Report changes in the agencies' November 2011 proposal,
the first four of which were proposed for implementation in June 2012
and the final three of which were proposed for implementation in March
2012, included:
A new Schedule RI-C, Disaggregated Data on the Allowance
for Loan and Lease Losses, in which institutions with total assets of
$1 billion or more would report a breakdown by key loan category of the
end-of-period allowance for loan and lease losses (ALLL) disaggregated
on the basis of impairment method and the end-of-period recorded
investment in held-for-investment loans and leases related to each ALLL
balance;
A new Schedule RC-U, Loan Origination Activity (in
Domestic Offices), in which institutions with total assets of $300
million or more would report, separately for several loan categories,
the quarter-end amount of loans (in domestic offices) reported in
Schedule RC-C, Loans and Lease Financing Receivables, that was
originated during the quarter, and institutions with total assets of $1
billion or more would also report for these loan categories the
portions of the quarter-end amount of loans originated during the
quarter that were (a) originated under a newly established loan
commitment and (b) not originated under a loan commitment;
New Memorandum items in Schedule RC-N, Past Due and
Nonaccrual Loans, Leases, and Other Assets, for the total outstanding
balance and related carrying amount of purchased credit-impaired loans
accounted for under Accounting
[[Page 9730]]
Standards Codification (ASC) Subtopic 310-30 that are past due 30
through 89 days and still accruing, past due 90 days or more and still
accruing, and in nonaccrual status;
New items in Schedule RC-P, 1-4 Family Residential
Mortgage Banking Activities, in which institutions with $1 billion or
more in total assets and smaller institutions with significant mortgage
banking activities would report the amount of representation and
warranty reserves for 1-4 family residential mortgage loans sold (in
domestic offices), with separate disclosure of reserves for
representations and warranties made to U.S. government and government-
sponsored agencies and to other parties;
New items in Schedule RC-M, Memoranda, in which savings
associations and certain state savings and cooperative banks would
report on the test they use to determine their compliance with the
Qualified Thrift Lender requirement and whether they have remained in
compliance with this requirement.
Revisions to two existing items in Schedule RC-R,
Regulatory Capital, used in the calculation of the leverage ratio
denominator to accommodate certain differences between the regulatory
capital standards that apply to the leverage capital ratios of banks
versus savings associations.
Instructional revisions addressing the discontinued use of
specific valuation allowances by savings associations when they begin
to file the Call Report instead of the TFR beginning in March 2012; the
reporting of the number of deposit accounts of $250,000 or less in
Schedule RC-O, Other Data for Deposit Insurance and FICO Assessments,
by institutions that have issued certain brokered deposits; and the
accounting and reporting treatment for capital contributions in the
form of cash or notes receivable.
Further details concerning the preceding proposed Call Report
changes may be found in Sections II.A through II.G of the agencies'
November 2011 Federal Register notice.\4\
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\4\ See 76 FR 72038-72045, November 21, 2011.
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The agencies collectively received comments on their November 2011
Federal Register notice from eight entities: four banking
organizations, two bankers' associations, a commercial lending software
company, and a news organization. One bankers' association offered the
general statement that its ``members expressed no concerns with many of
the agencies' proposed revisions.'' None of the commenters specifically
addressed the reporting changes proposed for implementation as of March
31, 2012. All eight of the commenters addressed one or both of the two
new schedules proposed to be added to the Call Report as of June 30,
2012: Schedule RI-C, Disaggregated Data on the Allowance for Loan and
Lease Losses, and Schedule RC-U, Loan Origination Activity (in Domestic
Offices). One bankers' association expressed support for the proposed
new items for past due and nonaccrual purchased credit-impaired loans,
which were also proposed to be added to the Call Report as of June 30,
2012, and recommended ``that the agencies adopt these proposed
revisions without change.'' The news organization supported the
proposed collection of data on representation and warranty reserves for
1-4 family residential mortgage loans beginning June 30, 2012. The
agencies concur with this commenter's suggestion that the instructions
for the new items for these reserves clarify that representations and
warranties made to mortgage insurers of loans sold fall within the
scope of these items.
In addition, the news organization recommended that the agencies
consider significantly revising the information they collect on
mortgage banking activities in Schedule RC-P by adding further detail
in certain areas and deleting certain existing items. These
recommendations go well beyond the agencies' current proposal to add
new items for representation and warranty reserves to Schedule RC-P.
The FFIEC and the agencies will consider the news organization's ideas
in conjunction with their evaluation of other possible Call Report
revisions that would be included in a future proposal.
After considering the comments the agencies received, the FFIEC and
the agencies are proceeding with the revisions proposed for
implementation as of the March 31, 2012, report date as well as the
proposed new items for past due and nonaccrual purchased credit-
impaired loans and representation and warranty reserves for 1-4 family
residential mortgages effective as of the June 30, 2012, report
date.\5\ As for the new schedules for disaggregated ALLL data and
selected loan origination data proposed for implementation as of June
30, 2012, the FFIEC and the agencies are continuing to evaluate these
two proposed schedules in light of the comments received. When the
FFIEC and the agencies have decided whether and how to proceed with
these proposed new schedules, a separate Federal Register notice will
be published and, if applicable, submissions by the agencies will be
made to OMB. Because of the additional time necessary for the FFIEC and
the agencies to determine the outcome of proposed new Call Report
Schedules RI-C and RC-U and to allow sufficient lead time for affected
institutions to prepare for any resulting new reporting requirements,
the collection of disaggregated ALLL data and selected loan origination
data would not take effect before the September 30, 2012, report date.
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\5\ In December 2011, the agencies separately requested approval
from OMB to add six new items of limited scope and applicability to
Call Report Schedule RC-O, Other Data for Deposit Insurance and FICO
Assessments that also would take effect June 30, 2012. These six new
Call Report Schedule RC-O items are: (a) For large and highly
complex institutions, Memorandum item 16, ``Portion of loans
restructured in troubled debt restructurings that are in compliance
with their modified terms and are guaranteed or insured by the U.S.
government (including the FDIC)''; (b) For large and highly complex
institutions that own another insured depository institution,
Memorandum items 17.a through 17.d for the fully consolidated
amounts of total deposit liabilities before exclusions, total
allowable exclusions, unsecured other borrowings with a remaining
maturity of one year or less, and estimated amount of uninsured
deposits; and (c) For all institutions that own another insured
depository institution, Memorandum item 9.a for the fully
consolidated amount of reciprocal brokered deposits. See 76 FR
77315, December 12, 2011.
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The list below summarizes each of the Call Report changes included
in the agencies' November 2011 proposal along with its implementation
status:
Proposed new Schedule RI-C, Disaggregated Data on the
Allowance for Loan and Lease Losses: Remains under review by the FFIEC
and the agencies; not to be implemented before September 30, 2012;
Proposed new Schedule RC-U, Loan Origination Activity (in
Domestic Offices): Remains under review by the FFIEC and the agencies;
not to be implemented before September 30, 2012;
New Memorandum items in Schedule RC-N, Past Due and
Nonaccrual Loans, Leases, and Other Assets: Implement June 30, 2012;
New items in Schedule RC-P, 1-4 Family Residential
Mortgage Banking Activities: Implement June 30, 2012;
New items in Schedule RC-M, Memoranda: Implement March 31,
2012;
Revisions to two existing items in Schedule RC-R,
Regulatory Capital: Implement March 31, 2012;
Instructional revisions addressing the discontinuation of
certain valuation allowances by savings associations; the reporting of
certain deposit accounts in Schedule RC-O; and the accounting and
reporting treatment for certain capital
[[Page 9731]]
contributions: Implement March 31, 2012.
Consistent with longstanding practice, for the March 31, 2012, and
June 30, 2012, report dates, as applicable, institutions may provide
reasonable estimates for any new or revised Call Report item initially
required to be reported as of that date for which the requested
information is not readily available.
Request for Comment
Public comment is requested on all aspects of this joint notice.
Comments are invited on:
(a) Whether the proposed revisions to the collections of
information that are the subject of this notice are necessary for the
proper performance of the agencies' functions, including whether the
information has practical utility;
(b) The accuracy of the agencies' estimates of the burden of the
information collections as they are proposed to be revised, including
the validity of the methodology and assumptions used;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of information collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or start up costs and costs of operation,
maintenance, and purchase of services to provide information.
Comments submitted in response to this joint notice will be shared
among the agencies. All comments will become a matter of public record.
Dated: February 9, 2012.
Michele Meyer,
Assistant Director, Legislative and Regulatory Activities Division,
Office of the Comptroller of the Currency.
Board of Governors of the Federal Reserve System.
Robert deV. Frierson,
Deputy Secretary of the Board.
Dated at Washington, DC, this 10th day of February 2012.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2012-3735 Filed 2-16-12; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P