[Federal Register Volume 60, Number 43 (Monday, March 6, 1995)]
[Notices]
[Pages 12216-12218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5359]





Agency Forms Under Review

Background:

    Notice is hereby given of the submission of proposed information 
collection(s) to the Office of Management and Budget (OMB) for its 
review and approval under the Paperwork Reduction Act (Title 44 U.S.C. 
Chapter 35) and under OMB regulations on Controlling Paperwork Burdens 
on the Public (5 CFR Part 1320). A copy of the proposed information 
collection(s) and supporting documents is available from the agency 
clearance officer listed in the notice. Any comments on the proposal 
should be sent to the agency clearance officer and to the OMB desk 
officer listed in the notice.
DATES: Comments are welcome and should be submitted on or before March 
20, 1995.
FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance Officer--Mary M. McLaughlin--Division 
of Research and Statistics, Board of Governors of the Federal Reserve 
System, Washington, D.C. 20551 (202-452-3829); for the hearing impaired 
only, telecommunications device for the deaf (TTD) (202-452-3544), 
Dorothea Thompson, Board of Governors of the Federal Reserve System, 
Washington, D.C. 20551.
OMB Desk Officer--Milo Sunderhauf--Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, Room 3208, Washington, D.C. 20503 (202-395-7340)
    Request for OMB approval to revise the following report:
    1. Report title: Consolidated Reports of Condition and Income (Call 
Report).
Agency form number: FFIEC 031-034.
OMB Docket number: 7100-0036.
Frequency: Quarterly.
Reporters: State member banks.
Annual reporting hours: 169,592.
Estimated average hours per response: 43.0.
Number of respondents: 986.
Small businesses are affected.
    General description of report: This information collection is 
mandatory to obtain or retain a benefit (12 U.S.C. 324) and is given 
partial confidential treatment.
SUMMARY: The proposed revisions to the Call Report that have been 
submitted to the Office of Management and Budget for approval are 
mandated by the Federal Financial Institutions Examination Council 
(FFIEC).
    On a quarterly basis, state member banks are required to file 
detailed schedules of assets, liabilities, and capital in the form of a 
condition report and summary statement; detailed schedule of operating 
income and expense, sources and disposition of income, and changes in 
equity in the form of an income statement; and a variety of supporting 
schedules. Data are used for supervisory and monetary policy purposes. 
The proposed changes affect several existing Call Report schedules. 
Unless otherwise indicated, the proposed changes would apply to all 
four sets of reporting forms (FFIEC 031, FFIEC 032, FFIEC 033, and 
FFIEC 034; the proposed changes are as follows:
Deletions and Reductions in detail
    The level of detail with which restructured loans and leases that 
are in compliance with modified terms are reported in the memoranda 
section of Schedule RC-C, ``Loans and Lease Financing Receivables,'' 
would be reduced. For all banks, the current separate items for the 
various non-real-estate loan categories will be combined into a single 
item for ``All other loans and all lease financing receivables.'' In 
addition, banks with foreign offices or with $300 million or more in 
total assets that file the FFIEC 031 and 032 report forms also will 
report a single total for their restructured commercial loans to and 
their restructured leases of non-U.S. addressees.
Call Report items in the seven following areas would be deleted:
    (1) Schedule RC-R, item 3, ``Total qualifying capital allowable 
under the risk-based capital guidelines.''
    (2) The quarterly average of ``Obligations (other than securities 
and leases) of states and political subdivisions in the U.S.'' in 
Schedule RC-K, item 6.a(6) on the FFIEC 031, item 6.f on the FFIEC 032, 
and Memorandum item 1 on the FFIEC 033. This average has not been 
collected from banks with less than $100 million in assets that file 
the FFIEC 034 report form.
    (3) The four components of mandatory convertible debt, net of 
dedicated stock, in Schedule RC-M, items 7.a through 7.d on the FFIEC 
031 and 032, items 6.a through 6.d on the FFIEC 033, and items 8.a 
through 8.d on the FFIEC 034. The item for the total amount of 
mandatory convertible debt, net of dedicated stock, would be retained.
    (4) The year-to-date reconcilement of the allocated transfer risk 
reserve in Schedule RI-B, Part II. This reconcilement has been 
collected only from banks with foreign offices or with total assets of 
$300 million or more that file the FFIEC 031 or 032 report forms.
    (5) The quarterly reconcilement of the agricultural loan loss 
deferral account in Schedule RC-M, items 10.a through 10.e. This 
reconcilement has been [[Page 12217]] collected only from banks with 
total assets of less than $100 million that file the FFIEC 034 report.
    (6) Recoveries of ``Special-Category Loans'' in Schedule RI-B, Part 
1, Memorandum item 1 on the FFIEC 031 and 032, Memorandum item 3 on the 
FFIEC 033, and Memorandum item 2 on the FFIEC 034. This item has been 
collected from national banks only.
    (7) The yes-no question on ``Personnel changes among the three 
senior officers of the bank during the quarter'' in Schedule RC-M, item 
6 on the FFIEC 034. This item has been completed only by banks with 
total assets of less than $100 million that file the FFIEC 034 report 
form.
New Items
    Call Report items in the eight following areas would be added:
    (1) Notional Amounts/Par Values
    At present, all banks report notional amount/par value data for 
interest rate, foreign exchange rate, and other commodity and equity 
contracts in items 11 through 13 of Schedule RC-L, ``Off-Balance Sheet 
Items.'' The existing items will be expanded to separate exchange-
traded contracts from over-the-counter contracts and to separate equity 
derivative contracts from commodity and other contracts. (Spot foreign 
exchange contracts would also be reported separately.) In addition, for 
each of the four types of underlying risk exposures (i.e., interest 
rate, foreign exchange, equity, and commodity, and other), the total 
notional amount/par value of contracts held for trading and held for 
purposes other than trading will be reported separately, with the 
latter further divided between contracts that are marked to market for 
Call Report purposes and those that are not.
    (2) Gross Fair Values
    For banks with foreign offices or with $100 million or more in 
total assets that file the FFIEC 031, 032, or 033 reporting forms, 
Schedule RC-L will also be expanded to include gross fair value data 
for derivatives. (This information will not be collected from small 
banks that file the FFIEC 034 report forms.) For each of the four types 
of underlying risk exposures, the gross positive and gross negative 
fair values will be reported separately for
    (i) Contracts held for trading purposes,
    (ii) Contracts held for purposes other than trading that are marked 
to market, and
    (iii) Contracts held for purposes other than trading that are not 
marked to market. When reporting gross fair values, no netting of 
contracts would be permitted.
    (3) Income-Related Information
    Additional memorandum items to Schedule RI, ``Income Statement'' 
will be reported by banks with foreign offices or with $100 million or 
more in total assets that file the FFIEC 031, 032, or 033 reporting 
forms. First, banks will provide a breakdown of trading revenue that 
has been included in the body of the Schedule RI income statement. For 
each of the four types of underlying risk exposures, banks will report 
the combined revenue from trading cash and derivative instruments. 
Second, for derivatives held for purposes other than trading, banks 
will report the effect that these contracts had on the bank's income as 
reported in Schedule RI. There will be separate disclosure of
    (i) The net increase (decrease) to interest income,
    (ii) The net increase (decrease) to interest expense, and
    (iii) The effect on noninterest income and expense of these off-
balance-sheet derivative contracts.
    (4) Risk-Based Capital Reporting Changes
    For those banks that complete Schedule RC-R in its entirety, the 
schedule's memorandum section will be revised to provide for the 
collection of remaining maturity data for long-dated contracts and for 
four additional types of derivative contracts: gold contracts, other 
precious metals contracts, other commodity contracts, and equity 
contracts. The two replacement cost items currently collected for 
interest rate and foreign exchange rate contracts will be deleted and 
replaced with a single new item for a bank's current credit exposure 
across all derivative contracts and counterparties, taking into account 
legally enforceable, bilateral netting agreements that are recognized 
for risk-based capital.
    (5) Investments in ``High-Risk Mortgage Securities'' and Structured 
Notes''
    Four memorandum items would be added to Schedule RC-B, 
``Securities,'' in which banks will separately report the amortized 
cost and fair value of any ``high-risk mortgage securities'' and of any 
``structured notes'' that are held in either the held-to-maturity or 
available-for-sale portfolios.
    (6) Sales of Proprietary Mutual Funds and Annuities
    Currently banks are required to report separately the dollar amount 
of sales during the quarter for money market funds, equity securities 
funds, debt securities funds, other mutual funds, and annuities in 
Schedule RC-M, ``Memoranda.'' The five existing mutual fund and annuity 
items combine sales of proprietary, private label, and third party 
products. The banking agencies would add one item to Schedule RC-M in 
which banks will report separately the total sales during the quarter 
of proprietary mutual funds and annuities.
    (7) Reporting of Reciprocal Demand Balances for Insurance 
Assessment Purposes
    The banking agencies would add three items to Schedule RC-O, 
``Other Data for Deposit Insurance Assessments,'' in order to identify 
the amount of the these adjustments to a bank's reported demand 
deposits that are needed for deposit insurance assessment purposes:
    (i) Amount by which demand deposits would be reduced if reciprocal 
demand balances between the reporting bank and savings associations 
were reported on a net basis rather than a gross basis in Schedule RC-
E,
    (ii) Amount by which demand deposits would be increased if 
reciprocal demand balances between the reporting bank and U.S. branches 
and agencies of foreign banks were reported on a gross basis rather 
than a net basis in Schedule RC-E, and
    (iii) Amount by which demand deposits would be reduced if cash 
items in process of collection were included in the calculation of net 
reciprocal demand balances between the reporting bank and U.S. banks 
and savings associations in Schedule RC-E.
    (8) Disclosure of the Acquisition Date When Push Down Accounting 
Has Been Applied
    Push down accounting is the establishment of a new accounting basis 
for a bank in its separate financial statements (including its Call 
Report) as a result of a substantive change in control. The banking 
agencies would add an item to the Memoranda section of Schedule RI, 
``Income Statement,'' to reveal the date when any such transactions 
have taken place.
Instructional Changes
    The Call Report instructions will be updated in certain places to 
incorporate references to FASB Statement No. 114, ``Accounting by 
Creditors for Impairment of a Loan.'' Statement No. 114 defines 
impairment and sets forth measurement methods for estimating the 
portion of the total allowance for loan and lease losses attributable 
to impaired loans. The banking agencies also propose instructional 
changes relating to the reporting of mortgage-backed securities in the 
body of Schedule RC-B, ``Securities,'' so that item 4 of Schedule RC-B 
will include all mortgage-backed securities. In addition, the Call 
Report instructions will be clarified in response to questions about 
the reporting of lines of credit extended to bank insiders, 
participations in pools [[Page 12218]] of residential mortgages, 
refundable loan commitment fees, and stock subscription payments.
    The effective date for these proposed changes, if approved, would 
be the March 31, 1995, report date.

    Board of Governors of the Federal Reserve System, February 28, 
1995.
William W. Wiles,
Secretary of the Board.
[FR Doc. 95-5359 Filed 3-3-95; 8:45AM]
Billing Code 6210-01-F