[Federal Register Volume 71, Number 88 (Monday, May 8, 2006)]
[Notices]
[Pages 26809-26811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-4208]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
Effect of the Federal Deposit Insurance Reform Act on the
Consolidated Reports of Condition and Income
AGENCIES: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Joint notice and request for comment.
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SUMMARY: The Federal Financial Institutions Examination Council
(FFIEC), of which the agencies are members, has approved the agencies'
publication of this notice announcing the effect of the Federal Deposit
Insurance Reform Act on the reporting of certain deposit-related data
in the Consolidated Reports of Condition and Income (Call Report; FFIEC
031 and 041). Because the deposit insurance coverage for certain
retirement plan deposits has increased from $100,000 to $250,000 while
the insurance limit for deposit accounts in other ownership capacities
has remained at $100,000, data will begin to be reported separately for
the number and amount of retirement deposit accounts with balances
within and in excess of the new $250,000 insurance limit. The
instructions for reporting estimated uninsured deposits by banks with
$1 billion or more in total assets and for reporting brokered deposits
will be revised to reflect the new insurance limit for retirement
deposit accounts. In addition, with the merger of the insurance funds
administered by the FDIC, items in which banks with ``Oakar deposits''
have reported information on purchases and sales of deposits are no
longer needed and will be eliminated. These reporting changes will take
effect in the Call Report for June 30, 2006. In a separate action, the
agencies have decided not to implement two new credit-derivative-
related items that were to be added to the Call Report on September 30,
2006.
DATES: Comments must be submitted on or before May 22, 2006.
ADDRESSES: Interested parties are invited to submit written comments to
any or all of the agencies. All comments, which should refer to the
Office of Management and Budget (OMB) control number(s), will be shared
among the agencies.
OCC: You may submit comments, identified by [Attention: 1557-0081],
by any of the following methods:
E-mail: [email protected]. Include [Attention:
1557-0081] in the subject line of the message.
Fax: (202) 874-4448.
Mail: Public Information Room, Office of the Comptroller
of the Currency, 250 E Street, SW., Mailstop 1-5, Washington, DC 20219;
Attention: 1557-0081.
Public Inspection: You may inspect and photocopy comments at the
Public Information Room. You can make an appointment to inspect the
comments by calling (202) 874-5043.
Board: You may submit comments, which should refer to
``Consolidated Reports of Condition and Income, 7100-0036,'' by any of
the following methods:
Agency Web Site: http://www.federalreserve.gov. Follow the
instructions for submitting comments on the http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: [email protected]. Include docket
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
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as
submitted,
[[Page 26810]]
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/notices.html.
E-mail: [email protected]. Include ``Consolidated Reports
of Condition and Income, 3064-0052'' in the subject line of the
message.
Mail: Steven F. Hanft (202-898-3907), Paperwork Clearance
Officer, Room MB-3064, 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/notices.html
including any personal information provided. Comments may be inspected
at the FDIC Public Information Center, Room E-1002, 3502 North Fairfax
Drive, Arlington, VA 22226, between 9 a.m. and 5 p.m. on business days.
Additionally, commenters should 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:
OCC: Mary Gottlieb, OCC Clearance Officer, or Camille Dickerson,
(202) 874-5090, Legislative and Regulatory Activities Division, Office
of the Comptroller of the Currency, 250 E Street, SW., Washington, DC
20219.
Board: Michelle E. Long, 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: Steven F. Hanft, (202) 898-3907, Room MB-3064, Legal
Division, Federal Deposit Insurance Corporation, 550 17th Street, NW.,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Background
Banks file Call Report data with the agencies each quarter for the
agencies' use in monitoring the condition, performance, and risk
profile of reporting banks and the industry as a whole. In addition,
Call Report data provide the most current statistical data available
for evaluating bank corporate applications such as mergers, for
identifying areas of focus for both on-site and off-site examinations,
and for monetary and other public policy purposes. Call Report data are
also used to calculate all banks' deposit insurance and Financing
Corporation assessments and national banks' semiannual assessment fees.
II. Current Actions
A. Changes Due to Deposit Insurance Reform
The Federal Deposit Insurance Reform Act of 2005 (Reform Act) (Pub.
L. 109-171), enacted in February 2006, increased the deposit insurance
limit for certain retirement plan deposit accounts from $100,000 to
$250,000. The basic insurance limit for other depositors--individuals,
joint accountholders, businesses, government entities, and trusts--
remains at $100,000. The FDIC issued an interim rule to implement this
increase in coverage and other provisions of the Reform Act pertaining
to deposit insurance coverage effective April 1, 2006 (71 FR 14629).
``Retirement deposit accounts'' that are eligible for $250,000 in
deposit insurance coverage are deposits made in connection with the
following types of retirement plans: Individual Retirement Accounts
(IRAs), including traditional and Roth IRAs; Simplified Employee
Pension (SEP) plans; ``Section 457'' deferred compensation plans; self-
directed Keogh (HR 10) plans; and self-directed defined contribution
plans, which are primarily 401(k) plan accounts. The term ``self-
directed'' means that the plan participants have the right to direct
how their funds are invested, including the ability to direct that the
funds be deposited at an FDIC-insured institution. Retirement deposit
accounts exclude Coverdell Education Savings Accounts, formerly known
as Education IRAs.
At present, all banks report the number and amount of deposit
accounts of (a) $100,000 or less and (b) more than $100,000 in Call
Report Schedule RC-O, Memorandum items 1.a.(1) through 1.b.(2). This
information provides the basis for calculating ``simple estimates'' of
the amount of insured and uninsured deposits and is the only
information reported by individual banks with less than $1 billion in
total assets pertaining to their estimated uninsured deposits. In 2003,
the Office of Management and Budget (OMB) approved a revision to the
Call Report information collection pursuant to the Paperwork Reduction
Act that provided that ``for the Memorandum items on the number and
amount of deposit accounts by size of account in the insurance
assessments schedule (Schedule RC-O), the dollar amount for the size of
an account represents the deposit insurance limit in effect on the
report date.''\1\ This action was taken to ensure that the reporting on
the number and amount of deposits accounts in Schedule RC-O, Memorandum
item 1, could be changed automatically as a function of the deposit
insurance limits in effect on any particular quarter-end Call Report
date.
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\1\ 68 FR 10311, March 4, 2003. Also see 67 FR 68230, November
8, 2002.
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Therefore, in response to the change in the deposit insurance
coverage for ``retirement deposit accounts,'' which creates a different
level of coverage than for all other deposit accounts, the agencies are
adding new Memorandum items 1.c.(1) through 1.d.(2) to Call Report
Schedule RC-O effective June 30, 2006. As revised, Memorandum item 1
(including its subitems) would be as follows:
1. Total deposits (in domestic offices) of the bank (and in insured
branches in Puerto Rico and U.S. territories and possession):\2\
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\2\ On the FFIEC 031 report form, the sum of Schedule RC-O,
Memorandum items 1.a.(1), 1.b.(1), 1.c.(1), and 1.d.(1) must equal
the sum of Schedule RC, item 13.a, and Schedule RC-O, items 5.a and
5.b. On the FFIEC 041 report form, the sum of Schedule RC-O,
Memorandum items 1.a.(1), 1.b.(1), 1.c.(1), and 1.d.(1) must equal
Schedule RC, item 13.a.
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a. Deposit accounts (excluding retirement accounts) of $100,000 or
less:
(1) Amount of deposit accounts (excluding retirement accounts) of
$100,000 or less
(2) Number of deposit accounts (excluding retirement accounts) of
$100,000 or less (to be completed for the June report only)
b. Deposit accounts (excluding retirement accounts) of more than
$100,000:
(1) Amount of deposit accounts (excluding retirement accounts) of more
than $100,000
(2) Number of deposit accounts (excluding retirement accounts) of more
than $100,000
[[Page 26811]]
c. Retirement deposit accounts of $250,000 or less:
(1) Amount of retirement deposit accounts of $250,000 or less
(2) Number of retirement deposit accounts of $250,000 or less (to be
completed for the June report only)
d. Retirement deposit accounts of more than $250,000:
(1) Amount of retirement deposit accounts of more than $250,000
(2) Number of retirement deposit accounts of more than $250,000
In addition, banks with $1 billion or more in total assets report
the estimated amount of their uninsured deposits in Schedule RC-O,
Memorandum item 2.\3\ Through March 31, 2006, the reporting of this
estimate has been based on the $100,000 limit of deposit insurance
coverage that applied to deposits in all ownership capacities. With the
increase in the deposit insurance coverage on ``retirement deposit
accounts'' on April 1, 2006, the instructions for Memorandum item 2 are
being revised effective June 30, 2006, to state that a bank's estimate
of its uninsured deposits should reflect the deposit insurance limits
in effect for ``retirement deposit accounts'' and other deposit
accounts on the report date, which are $250,000 and $100,000,
respectively.
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\3\ Each year, the $1 billion asset size test is generally based
on the total assets reported on the bank's balance sheet in the
previous year's June 30 Call Report.
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Banks also report data on fully insured brokered deposits in Call
Report Schedule RC-E, Memorandum items 1.c.(1), ``Issued in
denominations of less than $100,000,'' and 1.c.(2), ``Issued either in
denominations of $100,000 or in denominations greater than $100,000 and
participated out by the broker in shares of $100,000 or less.'' With
the change in the insurance coverage for ``retirement deposit
accounts,'' the instructions for these items are being updated
effective June 30, 2006. As revised, the instructions state that, for
brokered deposits that represent retirement deposit accounts eligible
for $250,000 in deposit insurance coverage, banks should report such
brokered deposits in Schedule RC-E, Memorandum item 1.c.(1), only if
they have been issued by the bank in denominations of less than
$100,000. Banks should report such brokered deposits in Schedule RC-E,
Memorandum item 1.c.(2), if they have been issued by the bank (a) in
denominations of exactly $100,000 through exactly $250,000 or (b) in
denominations greater than $100,000 that have been participated out by
the broker in shares of $250,000 or less.
The Reform Act also provided for the merger of the two deposit
insurance funds administered by the FDIC (the Bank Insurance Fund (BIF)
and the Savings Association Insurance Fund (SAIF)), a merger that the
FDIC effected on March 31, 2006. As a result, banks with ``Oakar
deposits,'' e.g., deposits insured by the SAIF in an institution that
is a member of the BIF, no longer need to report information on
purchases and sales of deposits during the quarter in Call Report
Schedule RC-O, items 8.a.(1), 8.a.(2), and 8.b. These items are being
deleted from the Call Report.
The preceding reporting changes will take effect in the Call Report
for June 30, 2006. For this June 30 report date only, banks may provide
reasonable estimates for any new or revised item for which the
requested information is not readily available.
After banks make any necessary changes to their systems and
records, the agencies estimate that these deposit-related reporting
changes will produce an average net increase of 0.5 hours per bank per
year in the ongoing reporting burden of the Call Report.
The agencies will monitor the impact of the new deposit insurance
limits on bank practices and may propose additional revisions to the
Call Report in the future to address supervisory or other public policy
concerns resulting from any changes in bank practices.
B. Changes to Proposed Items on Credit Derivatives
In March 2006, OMB approved the agencies' request to add new items
7.c.(1) and (2) to Call Report Schedule RC-L to collect information on
the maximum amounts that the reporting bank can collect or must pay on
the credit derivatives into which it has entered. These items were to
be added to the Call Report effective September 30, 2006.\4\ Upon
further consideration after consulting with banks active in the credit
derivatives market, the agencies have decided not to implement these
two new items.
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\4\ See 71 FR 8654.
Dated: April 28, 2006.
Stuart E. Feldstein,
Assistant Director, Legislative and Regulatory Activities Division,
Office of the Comptroller of the Currency.
Board of Governors of the Federal Reserve System, April 28,
2006.
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, DC, this 1st day of May, 2006.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 06-4208 Filed 5-5-06; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P