[Federal Register Volume 77, Number 217 (Thursday, November 8, 2012)]
[Notices]
[Pages 67059-67062]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-27283]
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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 the proposal, the FFIEC and the
agencies announced their final decisions regarding certain proposed
revisions on February 17, 2012. The agencies also announced they were
continuing to evaluate two new proposed Call Report schedules (Schedule
RI-C, Disaggregated Data on the Allowance for Loan and Lease Losses,
and Schedule RC-U, Loan Origination Activity (in Domestic Offices)) in
light of the comments received. The FFIEC and the agencies have
completed their evaluation of Schedule RI-C and will proceed with a
modified version of the schedule, which will be completed by
institutions with $1 billion or more in total assets beginning March
31, 2013. However, the FFIEC and the agencies are continuing their
evaluation of proposed Schedule RC-U. The FFIEC's and the agencies'
decision regarding proposed Schedule RC-U will be addressed in a future
Federal Register notice, and any resulting new reporting requirements
for loan origination data will not take effect before the June 30,
2013, report date.
DATES: Comments must be submitted on or before December 10, 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
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
[[Page 67060]]
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 9:00
a.m. and 5:00 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 NYA-
5046, 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 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.
FOR FURTHER INFORMATION CONTACT: For further information about the
revisions discussed in this notice, please contact any of the agency
clearance officers whose names appear below. In addition, copies of 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. The burden estimates
presented below are for the Call Report as it is proposed to be revised
effective March 31, 2013.
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: 1,909 national banks and federal
savings associations.
Estimated Time per Response: 53.76 burden hours per quarter to
file.
Estimated Total Annual Burden: 410,511 burden hours to file.
Board
OMB Number: 7100-0036.
Estimated Number of Respondents: 835 state member banks.
Estimated Time per Response: 55.66 burden hours per quarter to
file.
Estimated Total Annual Burden: 185,904 burden hours to file.
FDIC
OMB Number: 3064-0052.
Estimated Number of Respondents: 4,531 insured state nonmember
banks and state savings associations.
Estimated Time per Response: 40.56 burden hours per quarter to
file.
Estimated Total Annual Burden: 735,109 burden hours to file.
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 is estimated to
range from 17 to 710 hours per quarter, depending on an individual
institution's circumstances.
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.
[[Page 67061]]
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, identifying areas
of focus for on-site and off-site examinations, and 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 also are 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, under the auspices of the
FFIEC, requested comment on a limited number of proposed revisions to
the Call Report (76 FR 72035) for implementation in 2012 that were
focused primarily on institutions with $1 billion or more in total
assets. After considering the comments received, on February 17, 2012,
the agencies announced in the Federal Register (77 FR 9727) the
implementation of reporting changes and instructional revisions that
had been proposed to take effect March 31, 2012. The agencies also
announced the implementation of revisions to two existing schedules
proposed for implementation as of June 30, 2012. The FFIEC and the
agencies further stated they were deferring the implementation of new
Schedule RC-U, Loan Origination Activity (in Domestic Offices), and new
Schedule RI-C, Disaggregated Data on the Allowance for Loan and Lease
Losses (ALLL), both of which were originally proposed to be added to
the Call Report effective June 30, 2012. The FFIEC and the agencies
announced they were continuing to evaluate these proposed new schedules
in light of the comments received.
The agencies collectively received comments from eight entities on
their November 21, 2011, Federal Register notice initially proposing
these revisions: four banking organizations, two bankers' associations,
a commercial lending software company, and a news organization. Three
banking organizations and the two bankers' associations addressed
proposed Schedule RI-C, and all eight commenters addressed proposed
Schedule RC-U.
Proposed Schedule RI-C--Commenters expressed the general concern
that the proposed disaggregated ALLL data in Schedule RI-C are not
aligned with the manner in which institutions estimate and maintain
their ALLL. Although Financial Accounting Standards Board (FASB)
Accounting Standards Update No. 2010-20, Disclosures about the Credit
Quality of Financing Receivables and the Allowance for Credit Losses
(ASU 2010-20), requires entities to disclose the ALLL at the portfolio
segment level, institutions define segments differently than proposed
for Schedule RI-C. According to the commenters, modifying systems to
report ALLL information categorized as proposed would be costly and
necessitate significant lead time, up to nine months, to implement. One
commenter also recommended increasing the asset size threshold for
institutions to report this schedule, proposed to be collected from
institutions with $1 billion or more in total assets, to $5 billion or
$10 billion in total assets.
Two commenters recommended a more streamlined approach requiring
disclosure of fewer loan categories, thereby allowing the Agencies to
achieve their stated objective and permit institutions to report data
consistently with the business models and methodologies used to
estimate their ALLL. One of these commenters recommended collapsing the
proposed nine loan categories and collecting ALLL and the related
recorded investment amounts by impairment measurement method for only
three segments: consumer credit cards, all other consumer loans, and
commercial loans. The second commenter recommended reporting ALLL and
the related recorded investment amounts by impairment measurement
method for five loan categories: commercial real estate, residential
real estate, commercial, credit cards, and other consumer. The second
commenter also favored retaining the reporting of any unallocated
portion of the ALLL as had been proposed.\1\ Implicit in both of these
commenters' recommendations is the concept that the definitions for the
loan categories in Schedule RI-C should be those the reporting
institution uses in its ALLL methodology rather than those specified in
Call Report Schedule RC-C, part I, Loans and Leases.
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\1\ Another commenter stated that it fully supported this
commenter's recommendations.
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After consideration of the comments received on the proposed
disaggregation of ALLL information, the FFIEC and the agencies have
decided to modify proposed Schedule RI-C to collect ALLL and the
related recorded investment amounts by impairment measurement method
for the loan categories (and any unallocated portion of the ALLL) based
on the second approach described in the preceding paragraph, but with
the addition of a loan category for real estate construction loans. The
agencies consider it appropriate to segregate construction loans from
other commercial real estate loans because the risk characteristics of
the former differ significantly from those of the latter. The agencies
believe this more streamlined approach to proposed Schedule RI-C,
including its use of general loan categories rather than specifically
defined categories, would be more consistent with the methodologies
institutions currently employ in determining the appropriate level for
their overall ALLL and meeting the disclosure requirements of ASU 2010-
20. At the same time, the data that would be reported in Schedule RI-C,
as modified, should be sufficient to enable the agencies to more finely
focus their analyses related to the composition of an institution's
ALLL and the changes therein over time. In this regard, to aid in
evaluating the appropriateness of the reported level of an
institution's ALLL (for example, in periods between examinations and
when planning for examinations), the disaggregated ALLL data by loan
category could be reviewed in conjunction with the past due and
nonaccrual loan data used in general assessments of the credit quality
of an institution's loan portfolio. These credit quality data are
currently reported for broadly similar, but not identical, loan
categories in Call Report Schedule RC-N, Past Due and Nonaccrual Loans,
Leases, and Other Assets.
The FFIEC and the agencies have decided to retain the proposed $1
billion total asset threshold for Schedule RI-C, which exempts 91
percent of all institutions from this reporting requirement. Given that
institutions with $1 billion or more in total assets hold nearly 91
percent of the ALLL balances held by all institutions as of June 30,
2012, retaining this reporting threshold as proposed will enable the
agencies to perform a more comprehensive and decision-useful analysis
of the depository institution system, particularly in providing a
better understanding of how institutions' ALLL practices and
[[Page 67062]]
allocations differ for particular loan categories as economic
conditions change. Furthermore, all institutions with $1 billion or
more in total assets are subject to regulations requiring them to
prepare annual financial statements in accordance with U.S. generally
accepted accounting principles.\2\ Accordingly, such institutions
should have processes in place to develop the disaggregated ALLL data
required to be disclosed by ASU 2010-20, which are comparable to the
data specified by Schedule RI-C as modified in response to comments.
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\2\ 12 CFR part 363, Annual Independent Audits and Reporting
Requirements.
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To allow institutions sufficient lead time to make any necessary
adjustments to their data systems to report this modified
disaggregation of their ALLL and the related recorded investment
amounts by loan category and impairment measurement method, the
agencies will delay implementation of new Schedule RI-C until the March
31, 2013, report date.
Consistent with longstanding practice, for the March 31, 2013,
report date, institutions may provide reasonable estimates for any Call
Report Schedule RI-C item for which the requested information is not
readily available.
Proposed Schedule RC-U--The FFIEC and the agencies have not yet
completed their evaluation of this proposed new schedule in light of
the comments received. When the FFIEC and the agencies have decided
whether and how to proceed with Schedule RC-U, their decision will be
addressed in a future Federal Register notice and, if applicable,
submissions by the agencies will be made to OMB. To allow sufficient
lead time for affected institutions to prepare for any resulting new
reporting requirements for loan origination data, the collection of
such data would not take effect before the June 30, 2013, report date.
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: October 31, 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, November 2,
2012.
Robert deV. Frierson,
Secretary of the Board.
Dated at Washington, DC, this 31st day of October 2012.
Robert E. Feldman,
Executive Secretary. Federal Deposit Insurance Corporation.
[FR Doc. 2012-27283 Filed 11-7-12; 8:45 am]
BILLING CODE 4810-33-P 6210-01-P 6714-01-P