[Federal Register Volume 60, Number 164 (Thursday, August 24, 1995)]
[Notices]
[Pages 44116-44118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20948]



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DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
[No. 95-157]


Proposed Reduction of Data Collected on the Thrift Financial 
Report

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Notice; request for comment.

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SUMMARY: The Office of Thrift Supervision (OTS) requests comment on a 
proposal to fully consolidate and substantially reduce the amount of 
data submitted on the quarterly Thrift Financial Report (TFR). A 
streamlined, consolidated TFR has been developed in an effort to reduce 
the thrift industry's regulatory reporting burden while ensuring that 
the OTS will still collect information necessary to monitor safety and 
soundness. The effective date for the streamlined TFR would be June 
1996.

DATES: Comments must be received on or before October 23, 1995.

ADDRESSES: Send comments to Chief, Dissemination Branch, Thrift 
Supervision, 1700 G Street, NW., Washington DC 20552, Attention Docket 
No. 95-157. These submissions may be hand delivered to 1700 G Street 
NW. from 9:00 a.m. to 5:00 p.m. on business days; they may be sent by 
facsimile transmission to FAX Number (202) 906-7755. Comments will be 
available for inspection at 1700 G Street NW., from 1:00 p.m. until 
4:00 p.m. on business days.

FOR FURTHER INFORMATION CONTACT: Patrick G. Berbakos, Assistant 
Director, Financial Reporting Division, (202) 906-6720, or Catherine 
Shepard, Senior Attorney, Regulations and Legislation Division, Office 
of Chief Counsel (202) 906-7275; Office of Thrift Supervision, 1700 G 
Street NW., Washington, D.C. 20552.

SUPPLEMENTARY INFORMATION: As part of its continuing effort to reduce 
the regulatory burden for the thrift industry, the OTS proposes to 
significantly streamline the TFR beginning in June 1996. The agency, 
after consulting with its Washington and Regional examination, 
supervisory, and legal staff, has identified several TFR schedules and 
over 300 lines of data that can be eliminated. More than half of these 
items are being deleted as a result of converting the TFR into a fully 
consolidated format. Today OTS is seeking public comment on whether 
these proposed eliminations will reduce long-term regulatory costs and 
burdens for the industry and be consistent with safety and soundness 
and other public policy objectives.

I. Background

    The OTS has implemented a number of program changes during the past 
three years in an effort to enhance the efficiency of the financial 
reporting process, reduce the industry's reporting burden, increase 
customer service, and reduce the costs for both the industry and the 
OTS. The program changes included the elimination of the monthly data 
collection for the TFR, amending the reporting schedule to provide 
additional time for report preparation, and providing the industry with 
electronic filing software that facilitates the electronic preparation 
and filing of all regulatory reports.

II. Description of Proposed Changes to 1996 TFR

    After reviewing its current supervisory and examination needs, the 
OTS is proposing to eliminate 324 lines of data currently collected on 
the TFR. This decrease represents 40 percent of the TFR, exclusive of 
Schedule CMR, which is unaffected by this proposal. Lines of data and 
schedules that are no longer necessary because of changes in the 
industry's portfolio or OTS's supervisory priorities will no longer be 
collected. Only data that remain critical to meet supervisory needs, 
statutory 

[[Page 44117]]
mandates, or other important policy objectives will be collected.
    OTS is providing copies of this notice and a line-by-line 
description of the proposed TFR changes to all OTS-regulated savings 
associations. All other interested parties may obtain a line-by-line 
description of the proposal by calling (202) 906-6078. The following 
gives a schedule-by-schedule overview of the types of changes the OTS 
is proposing:

Schedule SC--Statement of Condition

    1. Delete the detail regarding real estate held for investment; 
retain a subtotal for real estate held for investment.
    2. Delete the breakdown of equity investment in and loans to 
service corporations and subsidiaries; retain a subtotal for 
investments and loans to service corporations and subsidiaries.
    3. Delete the detail of office premises and equipment; retain a 
subtotal for office premises and equipment.
    4. Delete SC-680 (Property Leased to Others).

Schedule SO--Statement of Operations

    1. Delete the item for penalties on early withdrawal of deposits.
    2. Delete four items under noninterest income, which will be 
included in other noninterest income.
    3. Combine net income from REO operations with gains and losses 
from the sale of REO and other repossessed assets.
    4. Combine gains and losses on the sale of assets.

Schedule CA--Capital Accounts

    Delete the entire schedule as it will be replaced by the expanded 
reconciliation of equity in Schedule CSI.

Schedule VA--Valuation Allowances

    Delete the detail of charge-offs and recoveries for Cash, Deposits, 
and Investment Securities and Real Estate Held for Investment; retain a 
subtotal for these assets.
Schedule PD--Past Due

    Delete the miscellaneous data on Schedule PD.

Schedule TA--Troubled Assets

    Retain troubled debt restructured and classification of assets data 
and delete all other data in this schedule. Add a new item summarizing 
mortgage loans foreclosed during the quarter.

Schedule CC--Commitments and Contingencies

    Delete information on futures, options, new commitments, and other 
miscellaneous data on commitments.

Schedule CF--Selected Cash Flow Information

    Retain activity data on mortgage pool securities, mortgage loans, 
nonmortgage loans, and deposits and delete other miscellaneous data.

Schedule SI--Supplemental Information Deposit Data

    1. Delete reference to deposits of $80,000, retaining only the 
$100,000 cut-off.
    2. Delete data that can be obtained from Schedule CMR.

Other Data

    Delete all data items in this section with the exception of SI-350 
(Approximate Value of Trust Assets Administered) and SI-370 (Number of 
Full-time Equivalent Employees).

Equity Investments

    Delete this section in its entirety.

Regulatory Liquidity

    Retain the liquidity ratio and delete the amount of assets eligible 
for regulatory liquidity.

FSLIC Guarantees and Assistance

    Delete these sections in their entirety.

Schedule SQ--Supplemental Questions

    Retain questions concerning the structure of assets and liabilities 
and accounting considerations and delete all other questions.

Schedule TR--Assets in Trading Accounts

    Delete this entire schedule and move data items regarding total 
assets held in trading accounts and securities available for sale and 
assets held for sale to Schedule SI.

Schedule YD--Yields on Deposits

    Delete items referencing $80,000--$100,000 certificate amounts.

Schedule AS--Annual Supplement

    Delete the entire schedule.

Schedule SB--Small Business Loans

    This schedule remains unchanged in accordance with Section 122 of 
the FDIC Improvement Act.

Schedules CSC and CSO--Consolidated Statements of Condition and 
Operations

    Delete these two schedules in their entirety because Schedules SC 
and SO will be redefined to contain consolidated data.

Schedule CSI--Consolidated Supplemental Information

    Delete all line items in this schedule except loan servicing, 
reconciliation of equity capital, asset repricing/maturing data and 
mutual fund and annuity sales, all of which will be moved to Schedule 
SI.

Schedule CSS--Consolidated Subsidiary Listing

    Collect this schedule annually at December 31.

Schedule CCR--Consolidated Capital Requirement

    Retain this schedule as is with the addition of one line to capture 
the assets of subsidiary depository institutions because these assets 
will not be consolidated in Schedule SC.

Schedule CMR--Consolidated Maturity/Rate

    No changes to this schedule.
III. Alternatives Considered

    The OTS considered several alternatives to make the TFR reporting 
process less burdensome. The OTS considered reducing the frequency of 
the reporting cycle from a quarterly report to a semiannual report, 
pursuant to the President's Memorandum of April 21, 1995 on 
``Regulatory Reform--Waiver of Penalties and Reduction of Reports,'' 60 
FR 20621 (April 26, 1995). However, the reporting cycle has already 
been reduced from monthly to quarterly, and the OTS believes that for 
reasons of safety and soundness it cannot further reduce the reporting 
cycle. In light of the rapidity with which an institution's balance 
sheet can change, OTS is concerned that reducing the reporting cycle to 
semiannually may prevent the early identification of a deteriorating 
situation.
    Section 307(b) of the Riegle Community Development and Regulatory 
Improvement Act of 1994 requires the Federal banking agencies to work 
jointly in adopting a single form for the filing of core financial 
information and to streamline the schedules supplementing the core 
information by eliminating data requirements that are not warranted for 
reasons of safety and soundness or other public interest purposes. The 
Federal banking agencies under the auspices of the Federal Financial 
Institutions Examination Council (FFIEC) have begun work on the 
development of a core report which may take several years to complete. 
Since the Commercial Bank Call Report (Call Report) is already prepared 
on a consolidated basis, the current OTS proposal to consolidate and 
condense the TFR is a critical first step in reaching a uniform core 
report. OTS believes that at this time, this alternative 

[[Page 44118]]
provides greater benefit for both the thrift industry and OTS and 
avoids the extensive systems modifications and retraining of personnel 
required by converting to the Call Report immediately.
    Finally, OTS considered whether the reporting burden for small 
savings associations could be appreciably reduced by developing a 
separate TFR for those institutions. OTS believes that such a separate 
schedule would not be consistent with supervisory needs. If an 
association is engaged in an activity, OTS's supervisory interest is 
the same regardless of the institution's size. Under the current TFR 
structure, savings associations need not complete line items on 
schedules for activities in which they are not engaged.

IV. Request for Comment

    The OTS invites comment on all aspects of the proposal and, in 
particular, whether the proposal will in fact reduce the TFR reporting 
burden. Consideration should be given to the amount of data collected, 
the ease of obtaining the data, and the extent to which cost savings 
would be realized over time as well as the estimated amount of 
implementation costs. The current average burden associated with the 
collection of the 1995 TFR is estimated to be 39.1 hours per response, 
including the completion of Schedule CMR. The projected average burden 
for the proposed TFR, including Schedule CMR, is 29.1 hours. Comment is 
also desired on whether an implementation date of June 1996 (rather 
than March) would impose a hardship on reporting savings associations 
or on other users of the financial data.
    The OTS is also interested in receiving comments on whether the 
filing deadline for Schedule CMR should be changed from the current 45 
days after the close of the quarter to 40 days, or 30 days to coincide 
with the TFR filing deadline. This change in the CMR reporting deadline 
would facilitate an earlier transmittal of the OTS Interest Rate Risk 
Exposure Report to reporting savings associations. Currently, a number 
of savings associations of all sizes and with a variety of portfolios 
file Schedule CMR within 30 days of the end of the quarter.

V. Paperwork Reduction Act

    The reporting requirements contained in this notice have been 
submitted to the Office of Management and Budget for review in 
accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
3504(h)). Comments on the collections of information should be sent to 
the Office of Management and Budget, Paperwork Reduction Project 
(1550), Washington, DC 20503, with copies to the Office of Thrift 
Supervision, 1700 G Street, N.W., Washington DC 20552.
    The reporting requirements in this notice are found in 12 CFR 
562.1(b)(2). The information is needed by the OTS to supervise savings 
associations and develop regulatory policy. The likely record keepers 
are OTS regulated savings associations.
    Estimated number of record keepers: 1,514.
    Estimated average annual burden per record keeper: 116.4 hours.
    Estimated annual frequency of record keeping: 4 (Quarterly).
    Estimated total annual record keeping burden: 176,230 hours.

    Dated: August 18, 1995.

    By the Office of Thrift Supervision.
Jonathan L. Fiechter,
Acting Director.
[FR Doc. 95-20948 Filed 8-22-95; 8:45 am]
BILLING CODE 6720-01 P