[Federal Register Volume 60, Number 44 (Tuesday, March 7, 1995)]
[Notices]
[Pages 12557-12559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5438]



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FEDERAL DEPOSIT INSURANCE CORPORATION


Information Collection Submitted to OMB for Review

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Notice of information collection submitted to OMB for review 
and approval under the Paperwork Reduction Act of 1980.

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SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act (44 U.S.C. chapter 35), the FDIC hereby gives notice that it has 
submitted to the Office of Management and Budget (OMB) a request for 
OMB review of the information collection described below.

Type of Review: Revision of a currently approved collection.
Title: Consolidated Reports of Condition and Income (Insured State 
Nonmember Commercial and Savings Banks).
Form Number: FFIEC 031, 032, 033, 034.
OMB Number: 3064-0052.
Expiration Date of OMB Clearance: July 31, 1995.
Respondents: Insured State Nonmember Commercial and Savings Banks.
Frequency of Response: Quarterly.
Number of Respondents: 7,011.
Number of Responses per Respondent: 4.
Total Annual Responses: 28,044.
Average Number of Hours per Response: 26.87.
Total Annual Burden Hours: 753,429.
OMB Reviewer: Milo Sunderhauf, (202) 395-7340, Office of Management and 
Budget, Paperwork Reduction Project 3064-0052, Washington, DC 20503.
FDIC Contact: Steven F. Hanft, (202) 898-3907, Office of the Executive 
Secretary, Room F-400, Federal Deposit Insurance Corporation, 550 17th 
Street NW., Washington, DC 20429.
Comments: Comments on this collection of information are welcome and 
should be submitted on or before March 22, 1995.

ADDRESSES: A copy of the submission may be obtained by calling or 
writing the FDIC contact listed above. Comments regarding the 
submission should be addressed to both the OMB reviewer and the FDIC 
contact listed above.

SUPPLEMENTARY INFORMATION: The FDIC is submitting for OMB review 
changes to the Federal Financial Institutions Examination Council 
(FFIEC) Consolidated Reports of Condition and Income (call Report) 
filed quarterly by insured state nonmember commercial and savings 
banks. The Federal Reserve Board (FRB) and the Office of the 
Comptroller of the Currency (OCC) are also submitting these changes for 
OMB review for the banks under their supervision.
    The proposed revisions to the Call Report that are the subject of 
this request have been mandated by the FFIEC and are scheduled to take 
effect as of March 31, 1995. The proposed changes affect several 
existing Call Report schedules. Unless otherwise indicated, the Call 
Report changes apply to all four sets of report forms (FFIEC 031, 032, 
033, and 034). Nonetheless, as is customary for Call Report changes, 
banks will be advised that, for the March 31, 1995, report date, they 
may provide reasonable estimates for any new or revised item for which 
the requested information is not readily available. The changes for 
which OMB approval is requested are summarized 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 6.9 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-day 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 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 
I, Memorandum item 1 on the FFIEC 031 [[Page 12558]] 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 of Off-Balanced Sheet Derivatives

    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 undelying 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 of Off-Balance Sheet Derivatives

    For banks with foreign offices or with $100 million or more in 
total assets that file the FFIEC 031, 032, or 033 report 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 Encompassing Off-Balance Sheet 
Derivative Activities

    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 report 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 of-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 purposes.

(5) Investments in ``High-Risk Mortgage Securitiess'' 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 new items to Schedule RC-O, ``Other 
Data for Deposit Insurance Assessments,'' in order to separately 
identify the amount of the following three types of adjustments to a 
bank's reported demand deposits that are related to reciprocal demand 
balances and 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- [[Page 12559]] 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 of residential mortgages, refundable 
loan commitment fees, and stock subscription payments.

    Dated: March 1, 1995.

    Federal Deposit Insurance Corporation.
Robert E. Feldman,
Acting Executive Secretary.
[FR Doc. 95-5438 Filed 3-6-95; 8:45 am]
BILLING CODE 6714-01-M