[Federal Register Volume 76, Number 26 (Tuesday, February 8, 2011)]
[Notices]
[Pages 7082-7087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-2779]



[[Page 7081]]

Vol. 76

Tuesday,

No. 26

February 8, 2011

Part V

Department of the Treasury



Office of the Comptroller of the Currency



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Federal Reserve Board

Federal Deposit Insurance Corporation

Department of the Treasury



Office of Thrift Supervision



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Proposed Agency Information Collection Activities; Comment Requests; 
Intent to Discontinue and Request for Comment; Notice of Intent to 
Require Reporting Forms for Savings and Loan Holding Companies; Notices

  Federal Register / Vol. 76 , No. 26 / Tuesday, February 8, 2011 / 
Notices  

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE BOARD

FEDERAL DEPOSIT INSURANCE CORPORATION

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of Governors of the Federal Reserve System (Board); Federal 
Deposit Insurance Corporation (FDIC); and Office of Thrift Supervision 
(OTS), Treasury.

ACTION: Joint notice and request for comment.

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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, the FDIC, 
and the OTS (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. The agencies, under the auspices of the Federal 
Financial Institutions Examination Council, have approved the 
publication for public comment of a proposal to require savings 
associations currently filing the Thrift Financial Report (TFR) to 
convert to filing the Consolidated Reports of Condition and Income 
(Call Report) beginning with the reporting period ending on March 31, 
2012.
    In addition, the Board is publishing a notice of its intent to 
require savings and loan holding companies (SLHCs) to submit to the 
Board all regulatory reports that are currently required to be filed by 
bank holding companies (BHCs), beginning with the reporting period 
ending on March 31, 2012. See the Board's separate Notice of Intent for 
its plans regarding SLHC reporting in today's Federal Register.
    The TFR and the Call Report are currently approved collections of 
information. At the end of the comment period, the comments and 
recommendations received will be analyzed to determine the extent to 
which the agencies should modify the proposal for savings associations 
to convert to filing the Call Report prior to giving final approval. 
The agencies will then submit the proposal to OMB for review and 
approval.

DATES: Comments must be submitted on or before April 11, 2011.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. 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 
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 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 
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 http://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 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/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.
     E-mail: [email protected]. Include ``Consolidated Reports 
of Condition and Income, 3064-0052'' in the subject line of the 
message.
     Mail: Gary A. Kuiper, (202) 898-3877, Counsel, Attn: 
Comments, Room F-1072, 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.
    OTS: You may submit comments, identified by ``1550-0023 (TFR: 
Conversion to Call Report),'' by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail address: [email protected]. 
Please include ``1550-0023 (TFR: Conversion to Call Report)'' in the 
subject line of the message and include your name and telephone number 
in the message.
     Fax: (202) 906-6518.
     Mail: Information Collection Comments, Chief Counsel's 
Office, Office of Thrift Supervision, 1700 G Street, NW., Washington, 
DC 20552, Attention: ``1550-0023 (TFR: Conversion to Call Report).''
     Hand Delivery/Courier: Guard's Desk, East Lobby Entrance, 
1700 G Street, NW., from 9 a.m. to 4 p.m. on business days, Attention: 
Information Collection Comments, Chief Counsel's Office, Attention: 
``1550-0023 (TFR: Conversion to Call Report).''
    Instructions: All submissions received must include the agency name 
and OMB Control Number for this information

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collection. All comments received will be posted without change to the 
OTS Internet Site at http://www.ots.treas.gov/pagehtml.cfm?catNumber=67&an=1, including any personal information 
provided.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.ots.treas.gov/pagehtml.cfm?catNumber=67&an=1. In addition, you may inspect comments 
at the Public Reading Room, 1700 G Street, NW., by appointment. To make 
an appointment for access, call (202) 906-5922, send an e-mail to 
public.info@ots.treas.gov">public.info@ots.treas.gov, or send a facsimile transmission to (202) 
906-7755. (Prior notice identifying the materials you will be 
requesting will assist us in serving you.) The OTS schedules 
appointments on business days between 10 a.m. and 4 p.m. In most cases, 
appointments will be available the next business day following the date 
we receive a request.
    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 
proposal discussed in this notice, please contact any of the agency 
clearance officers whose names appear below.
    In addition, copies of the reporting forms and instructions for the 
FFIEC 031, Consolidated Reports of Condition and Income for a Bank with 
Domestic and Foreign Offices, can be obtained at the FFIEC's Web site 
(http://www.ffiec.gov/forms031.htm).
    Copies of the reporting forms and instructions for the FFIEC 041, 
Consolidated Reports of Condition and Income for a Bank with Domestic 
Offices Only, can be obtained at the FFIEC's Web site (http://www.ffiec.gov/forms041.htm).
    Copies of the reporting forms and instructions for the TFR can be 
obtained at the OTS's Web site (http://www.ots.treas.gov/?p=ThriftFinancialReports).
    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, Acting 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.
    OTS: Ira L. Mills, OTS Clearance Officer, at 
[email protected], (202) 906-6531, or facsimile number (202) 906-
6518, Regulations and Legislation Division, Chief Counsel's Office, 
Office of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552.

SUPPLEMENTARY INFORMATION: The agencies are proposing to revise the 
reporting panel for the Call Report and to cease collection of data 
through all schedules of the TFR beginning with the reporting period 
ending on March 31, 2012. The Call Report is currently an approved 
collection of information for the OCC, the Board, and the FDIC. The TFR 
is currently an approved collection of information for the OTS.
    1. Report Title: Consolidated Reports of Condition and Income (Call 
Report).
    Form Number: Call Report: FFIEC 031 (for banks with domestic and 
foreign offices) and FFIEC 041 (for banks with domestic offices only).
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.

OCC

    OMB Number: 1557-0081.

Current

    Estimated Number of Respondents: 1,491 national banks.
    Estimated Time per Response: 53.25 burden hours.
    Estimated Total Annual Burden: 317,583 burden hours.

Proposed

    Estimated Number of Respondents: 2,171 (1,491 national banks and 
680 Federal savings associations).
    Estimated Time per Response: National banks: 53.25 burden hours per 
quarter to file.
    Federal savings associations: 53.25 burden hours per quarter to 
file and 188 burden hours for the first year to convert systems and 
conduct training.
    Estimated Total Annual Burden: National banks: 317,583 burden hours 
to file.
    Federal savings associations: 144,840 burden hours to file; 127,840 
burden hours for the first year to convert systems and conduct 
training.
    Total: 590,263 burden hours.

Board

    OMB Number: 7100-0036.

Current

    Estimated Number of Respondents: 841 State member banks.
    Estimated Time per Response: 55.19 burden hours.
    Estimated Total Annual Burden: 185,659 burden hours.
    Proposed: No change.

FDIC

    OMB Number: 3064-0052.

Current

    Estimated Number of Respondents: 4,713 insured State nonmember 
banks.
    Estimated Time per Response: 40.42 burden hours.
    Estimated Total Annual Burden: 761,998 burden hours.

Proposed

    Estimated Number of Respondents: 4,774 (4,713 insured State 
nonmember banks and 61 State savings associations).
    Estimated Time per Response: State nonmember banks: 40.42 burden 
hours per quarter to file.
    State savings associations: 40.42 burden hours per quarter to file 
and 188 burden hours for the first year to convert systems and conduct 
training.
    Estimated Total Annual Burden: State nonmember banks: 761,998 
burden hours to file.
    State savings associations: 9,862 burden hours to file; 11,468 
burden hours for the first year to convert systems and conduct 
training.
    Total: 783,328 burden hours.
    The estimated time per response for 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 
Call Report is estimated to range from 17 to 665 hours per quarter, 
depending on an individual institution's circumstances.
    2. Report Title: Thrift Financial Report (TFR).
    Form Number: OTS 1313 (for savings associations).
    Frequency of Response: Quarterly; Annually.
    Affected Public: Business or other for-profit.

OTS

    OMB Number: 1550-0023.

Current

    Estimated Number of Respondents: 741 savings associations.
    Estimated Time per Response: 37.5 burden hours.

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    Estimated Total Annual Burden: 111,150 burden hours.

Proposed

    Estimated Number of Respondents: Not applicable.
    Estimated Time per Response: Not applicable.
    Estimated Total Annual Burden: Not applicable.
    The burden estimates in this notice above are for the quarterly 
filings of the TFR and the Call Report. In addition to those filings, 
savings associations would incur an initial burden of converting 
systems and training staff to prepare and file the Call Report in place 
of the TFR as proposed. Accordingly, the burden estimates in this 
notice above for savings associations also include the time to convert 
to filing the Call Report, including necessary systems changes and 
training staff on Call Report preparation and filing, which is 
estimated to average 188 hours.
    As a general statement, larger institutions and those with more 
complex operations would expend a greater number of hours than smaller 
institutions and those with less complex operations. An institution's 
use of service providers for the information and accounting support of 
key functions, such as credit processing, transaction processing, 
deposit and customer information, general ledger, and reporting should 
result in lower burden hours for converting to the Call Report. 
Institutions with staff having experience in preparing and filing the 
Call Report should incur lower initial burden hours for converting to 
the Call Report from the TFR.
    A summary of the estimated initial burden hours for savings 
associations regarding the proposed conversion to the Call Report from 
the TFR is presented below.

Estimated Initial Burden of Proposal

    Estimated Number of Institutions: 741 savings associations.
    Estimated Time per Institution: 188 burden hours.
    Estimated Total Burden: 139,308 burden hours.

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 savings associations). At present, except for selected 
data items, the Call Report and TFR are not given confidential 
treatment.

Abstract

    Institutions submit Call Report and TFR data to the agencies each 
quarter for the agencies' use in monitoring the condition, performance, 
and risk profile of individual institutions and the bank and savings 
association industries as a whole. Call Report and TFR data provide the 
most current statistical data available for evaluating institutions' 
corporate applications, for identifying areas of focus for both on-site 
and off-site examinations, and for monetary and other public policy 
purposes. The agencies use Call Report and TFR 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 and TFR data also are 
used to calculate all institutions' deposit insurance and Financing 
Corporation assessments, and national banks' and savings associations' 
assessments.

Effect of Recent Legislation

    The Dodd-Frank Wall Street Reform and Consumer Protection Act, 
Public Law 111-203 (the Dodd-Frank Act) was enacted into law on July 
21, 2010. Title III of the Dodd-Frank Act abolishes the OTS, provides 
for its integration with the OCC effective as of July 21, 2011 (the 
``transfer date''), and transfers the OTS's functions to the OCC, the 
Board, and the FDIC. Under Title III of the Dodd-Frank Act, all 
functions of the OTS relating to Federal savings associations and 
rulemaking authority for all savings associations are transferred to 
the OCC. All functions of the OTS relating to State-chartered savings 
associations (other than rulemaking) are transferred to the FDIC. All 
functions of the OTS relating to supervision of SLHCs (including 
rulemaking) are transferred to the Board.
    After careful review, the agencies believe that having common 
financial reports and reporting processes among all FDIC-insured 
entities would be more efficient and would lead to more uniform 
comparisons of financial condition, performance, and trends among 
regulated institutions. For these reasons, the OTS is proposing to 
eliminate the TFR, and the agencies are proposing to require savings 
associations to adopt the reporting routines and processes required of 
all other FDIC-insured banks and savings institutions.
    Section 5(v)(1) of the Home Owners' Loan Act (12 U.S.C. 1464(v)(1)) 
does not contain a specific requirement for collection of financial 
information from savings associations in the TFR format. Rather, the 
statute provides broad authority for the OTS to determine the 
requirements of periodic reports and information needs. Therefore, 
there is no statutory impediment to requiring savings associations to 
convert from the TFR to the Call Report.

Current Actions

I. Overview

    The agencies are proposing to implement changes to savings 
associations' data reporting requirements beginning with the reporting 
period ending on March 31, 2012. These changes, which are discussed in 
detail in Section II of this notice, are intended to provide data 
needed for reasons of safety and soundness or other public purposes. 
The proposed changes would require savings associations to cease filing 
the TFR and commence filing the Call Report beginning on the March 31, 
2012, report date.

II. Proposal To Require Savings Associations To File Call Report

A. Background

    In making this proposal, the agencies carefully reviewed the 
comments received by OTS in its 2007 Advance Notice of Proposed 
Rulemaking (72 FR 64003, November 14, 2007) \1\ regarding a possible 
conversion to the Call Report. In that request for information, OTS 
asked commenters what information they needed to make an informed 
decision about the feasibility of converting to the Call Report.
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    \1\ Link to November 14, 2007 proposal published at 72 FR 64003: 
http://www.ots.treas.gov/_files/commenttopics/8f697712-0718-411f-a004-470f790edf80.pdf.
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    Though the majority of commenters supported converting to the Call 
Report, OTS decided in early 2008 not to require savings associations 
to convert to the Call Report. A key factor in that decision was the 
weakening economy and the resulting increases in loan delinquencies. 
Given that environment, a decision was made to let savings associations 
focus on asset quality issues rather than diverting resources and 
attention to converting reporting systems.
    Though the U.S. economy has not yet fully recovered from the recent 
severe recession, it is more stable than it was in early 2008. Further, 
the OTS-regulated savings association (or thrift) industry also has 
stabilized since the onset of the recession. The thrift industry posted 
positive earnings in

[[Page 7085]]

each of the five most recent quarters \2\ after experiencing net losses 
from fourth quarter 2007 through second quarter 2009. In addition, loss 
allowances and capital have been bolstered to record or near record 
levels. Moreover, the steep increases in thrifts' troubled assets--
loans 90 or more days delinquent or in nonaccrual status plus 
repossessed assets--which occurred during the early part of the 
recession, have abated. For example, the industry's ratio of troubled 
assets-to-total assets increased from 0.70 percent at the end of 2006 
to 3.65 percent at the end of third quarter 2009. The troubled asset 
ratio has eased slightly since that time. At the end of the third 
quarter of 2010, the thrift industry's troubled assets ratio stood at 
3.45 percent. The agencies believe the economic environment and thrift 
industry financial condition are now more favorable to pursue a 
conversion to the Call Report.
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    \2\ Through the third quarter 2010.
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B. Efforts To Reduce Burden

    The commenters not supporting the conversion to the Call Report in 
the 2007 proposal typically voiced concern over burden and, more 
specifically the initial burden of converting to a different reporting 
system. The agencies recognize that there will be initial burden in 
converting to the Call Report and have estimated this burden as 
discussed above in this notice. However, the agencies believe there 
will be longer-term efficiencies to having a common financial report 
among all FDIC-insured entities. For savings associations, these 
efficiencies include the availability of more staff across the 
financial institution industry with experience in Call Report 
preparation than with TFR preparation, more training opportunities 
available to the financial institution industry for Call Report 
preparation, and more integrated general ledger-to-Call Report 
processes and software available to the institutions.
    Efficiencies of the proposed report conversion also would extend to 
the agencies, which would have one set of financial information from 
which to evaluate and monitor the financial condition and operations of 
all FDIC-insured banks and savings associations.
    To help reduce the burden with converting reports, the proposal 
would:
    1. Curtail all proposed changes to the TFR for 2011 that would 
increase the differences between the TFR and the Call Report. Proposed 
changes to the TFR for 2011, announced on October 5, 2010 (75 FR 
61563),\3\ included changes that parallel proposed changes to the Call 
Report as well as changes unique to the TFR. Proposed changes unique to 
the TFR included proposed data collections for classified assets by 
major loan category and loan loss allowances by major loan category. 
All proposed TFR changes that increase differences with the Call Report 
would be curtailed in an effort to reduce the initial burden of 
converting to the Call Report. The OTS also would announce the decision 
to curtail these proposed changes in its response to comments received 
regarding the October 5, 2010 notice;
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    \3\ Link to October 5, 2010 proposal published at 75 FR 61563: 
http://edocket.access.gpo.gov/2010/pdf/2010-24883.pdf.
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    2. Require no additional savings association-only schedules for 
inclusion in the Call Report \4\ upon initial migration to the Call 
Report. The 2007 proposal to convert from the TFR to the Call Report 
mentioned that certain savings association-only schedules may have been 
required in addition to the Call Report filed by all other FDIC-insured 
institutions. In general, these savings association-only schedules 
would have sought to capture information collected in the TFR but not 
in the Call Report. Such schedules included ones for more information 
on mortgage loans, consumer loans, and classified assets. It was 
envisioned in 2007 that savings association-only schedules would be 
added to the existing Call Report, filed through the Call Report filing 
process, but completed only by OTS-regulated savings associations. The 
addition of savings association-only schedules to the Call Report is no 
longer being sought or proposed;
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    \4\ The 2007 proposal kept intact the filing of Schedules CMR 
and HC through existing OTS filing processes. All other TFR 
Schedules would have been eliminated.
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    3. Provide a ``mapping'' of TFR items to Call Report items. This 
mapping will be available on the OTS Web site at http://www.ots.treas.gov/?p=ThriftFinancialReports under Thrift Financial 
Report--TFR-to-Call Report Mapping on or before February 15, 2011. A 
link to this same mapping also will be made available on the FFIEC Web 
site under Call Report Forms at http://www.ffiec.gov/ffiec_report_forms.htm. Please note the findings from this mapping exercise may 
result in future changes to the Call Report. Any changes to the Call 
Report will be announced in a separate notice on which public comment 
will be requested;
    4. Make the filing of TFR Schedule CMR during 2011 optional for all 
OTS-regulated entities that have a ``1'' or ``2'' rating for their most 
recent composite rating under the Uniform Financial Institutions Rating 
System (UFIRS), have a ``1'' or ``2'' rating for their most recent 
UFIRS Sensitivity component rating, and have the means to adequately 
monitor and assess interest rate risk through internal processes 
pursuant to current regulatory guidance and expectations. Savings 
associations that decide to forego the filing of Schedule CMR under 
this provision would be required to notify their applicable regional 
office prior to the Schedule CMR filing deadline. The data collected on 
Schedule CMR currently are used as input for the OTS's Interest Rate 
Risk Model (IRR Model). The results of the IRR Model are used by 
examiners and supervisory staff as an aid in monitoring and gauging 
savings associations' interest rate risk. In addition, the OTS 
currently provides each institution with its own IRR Model results to 
aid the institution's own interest rate risk management; and
    5. Propose to cease collection of Schedule CMR beginning with the 
March 2012 reporting period. In making this decision, the agencies 
again reviewed the comments received by the OTS regarding its 2007 
proposal to convert from the TFR to the Call Report. As previously 
mentioned, the majority of commenters supported the conversion. And 
although eliminating Schedule CMR was not proposed by the OTS in its 
2007 proposal, several commenters recommended Schedule CMR should be 
eliminated. Those commenters typically mentioned that Schedule CMR was 
burdensome and that requiring savings associations to continue to file 
Schedule CMR in addition to the Call Report would place more burden on 
them than on comparably sized commercial banks and State-chartered 
savings banks. Moreover, those commenters also mentioned they already 
had their own means to gauge and monitor interest rate risk, and 
therefore their receipt of IRR Model results could be eliminated with 
no disruption to their management of interest rate risk.
    On the other hand, some commenters indicated the IRR Model results 
were useful, and they relied on the IRR Model results to help with 
managing their interest rate risk.
    The agencies carefully weighed these comments before making the 
decision to propose eliminating Schedule CMR beginning with the March 
2012 reporting period. The agencies believe it is more efficient, for 
institutions filing the required reports and the agencies as well, to 
have a common financial report

[[Page 7086]]

required of all FDIC-insured banks and savings associations. In 
addition, the agencies believe it is more efficient to have a common 
set of policies among all FDIC-insured entities regarding the 
management of interest rate risk. In this regard, beginning in 2012 
savings associations would be expected to follow the same general 
supervisory policies and guidelines regarding sound practices for 
managing interest rate risk as required of commercial banks and State-
chartered savings banks.\5\ The Web links for the general interest rate 
risk management policies and guidelines of the agencies (other than the 
OTS) are as follows:
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    \5\ Other specific changes to existing savings association 
policies, procedures, rules, and regulations are expected to be made 
through separate notices--pursuant to the Paperwork Reduction Act or 
the Administrative Procedure Act--depending on the nature of the 
proposal.

http://www.ffiec.gov/press/pr042398.htm
http://www.fdic.gov/news/news/press/2010/pr1002.pdf
http://www.fdic.gov/regulations/laws/rules/5000-4200.html
http://www.fdic.gov/regulations/safety/manual/section7-1_toc.html
http://www.federalreserve.gov/boarddocs/SRLETTERS/1996/sr9613.htm
http://www.federalreserve.gov/BoardDocs/SupManual/trading/200901/3000p2.pdf
http://www.occ.gov/news-issuances/bulletins/2010/bulletin-2010-1a.pdf
http://www.occ.gov/news-issuances/bulletins/1998/bulletin-1998-20.html
http://www.occ.gov/static/publications/handbook/irr.pdf

C. Report Preparation Training

    Converting to the Call Report likely would require OTS-regulated 
savings associations to retrain report preparation staff. Training on 
the completion and preparation of these reports is offered on a regular 
basis by independent trade and professional organizations.
    As stated above, the agencies will provide a ``mapping'' of TFR 
items to Call Report items to help reduce the initial burden of report 
conversion. There are some significant differences between the Call 
Report and TFR, examples of which are described below. Given these and 
other reporting differences, savings associations are encouraged to 
familiarize themselves with the Call Report instructions and seek 
training opportunities for report preparation staff as soon as 
possible. Web links to the Call Report forms and instructions are 
provided above in this notice.
    Significant reporting differences between the TFR and the Call 
Report include the following:
    1. In the TFR, data are reported for the quarter ending on the 
report date in Schedule SO--Consolidated Statement of Operations, the 
Summary of Changes in Savings Association Equity Capital in Schedule 
SI--Supplemental Information, Schedule VA--Consolidated Valuation 
Allowances and Related Data, and Schedule CF--Consolidated Cash Flow 
Information. In the comparable schedules of the Call Report, data are 
reported on a calendar year-to-date basis, regardless of an 
institution's fiscal year-end.
    2. Previously submitted TFRs can be amended only for 135 days after 
the end of the quarter for which an amended report is being filed 
electronically. In general, amendments to previously submitted Call 
Reports can be filed for up to five years after the report date, 
including amendments required by an institution's primary Federal bank 
supervisory authority when a report as previously submitted contains 
significant or material errors.
    3. In the Average Balance Sheet Data section of TFR Schedule SI--
Supplemental Information, savings associations report average balance 
sheet data for the quarter that, at a minimum, must be computed based 
on balances at month-end. However, savings associations may choose to 
compute these data based on other than month-end balances, such as 
daily or weekly balances. In Call Report Schedule RC-K--Quarterly 
Averages, institutions must report averages on a daily or weekly basis 
only.
    4. Savings associations can report specific valuation allowances in 
TFR Schedule VA-Consolidated Valuation Allowances and Related Data. 
Comparable reporting is not available in the Call Report. For example, 
for Call Report purposes, institutions take and report charge-offs on 
individual loans rather than creating specific valuation allowances.

D. Timing

    Savings associations currently regulated by the OTS would begin 
filing the Call Report as of the March 31, 2012 report date. Savings 
associations would file the same Call Report required of commercial 
banks and State-chartered savings banks not currently regulated by the 
OTS. Web links to the Call Report forms and instructions are provided 
above in this notice.
    Savings associations will continue to submit TFRs, including 
Schedules HC and CMR (except as discussed above for Schedule CMR), 
through the December 31, 2011 reporting period, using the processing, 
editing, and validating system currently in use, which is the 
Electronic Filing System (EFS) established by the OTS. In addition, 
SLHCs would continue to submit all required regulatory reports under 
the current SLHC reporting scheme (including the submission of the OTS 
Form H-(b)11 and Schedule HC HOLA 10(l)) utilizing the existing OTS 
reporting processes through the December 31, 2011 reporting period.
    Also beginning with the first quarter 2012 reporting period, 
according to plans, SLHCs currently regulated by OTS would start filing 
the same regulatory reports required to be filed by BHCs regulated by 
the Board. See the Board's separate Notice of Intent in today's Federal 
Register for more details.

E. Filing Process

    OTS-regulated savings associations use OTS-developed proprietary 
software to file TFRs. Call Reports for other FDIC-insured institutions 
are filed one of two ways, both using institution-acquired software. 
These two filing processes are described below:
    1. An institution may use computer software to prepare its report 
and then submit the report directly to the FFIEC's Central Data 
Repository (CDR), an Internet-based system for data collection (https://cdr.ffiec.gov/cdr/); or
    2. The institution may complete its reports in paper form and 
arrange with a software vendor or another party to convert its paper 
reports into an electronic format that can be processed by the CDR. The 
software vendor or another party then must electronically submit the 
data file containing the bank's Call Report to the CDR.
    A list of vendors offering software meeting the technical 
specifications for producing Call Report data files that are able to be 
processed by the CDR can be found on the last page of the FFIEC's most 
recent quarterly Call Report Supplemental Instructions found at http://www.ffiec.gov/ffiec_report_forms.htm. In addition, individual 
institutions may choose to develop their own Call Report preparation 
software that meets these technical specifications. The agencies will 
provide specific information on the requirements to those institutions 
that are interested in pursuing this option.

Request for Comment

    The agencies gave considerable thought to the timing of this 
proposal and reviewed the comments received by the OTS from the 2007 
proposal. Commenters responding to that

[[Page 7087]]

proposal indicated a TFR-to-Call Report conversion would take three to 
six quarters. Hence, the agencies believe the proposed implementation 
of these reporting changes in the reports for the first quarter of 2012 
would provide sufficient lead time and is therefore reasonable. 
Commenters who disagree with this assessment should specify why they 
believe they cannot meet that date and explain the time frame needed to 
comply with the proposed conversion.
    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.
    In addition to the above, public comment is requested on all 
aspects of this joint notice. Comments submitted in response to this 
joint notice will be shared among the agencies. All comments will 
become a matter of public record.

    Dated: January 19, 2011.
Michele Meyer,
Assistant Director, Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency.
    Board of Governors of the Federal Reserve System, February 2, 
2011.
Jennifer J. Johnson,
Secretary of the Board.
    Dated at Washington, DC this 24th day of January, 2011.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
    Dated: February 2, 2011.
Ira L. Mills,
Paperwork Clearance Officer, Office of Chief Counsel, Office of Thrift 
Supervision.
[FR Doc. 2011-2779 Filed 2-7-11; 8:45 am]
BILLING CODE 6720-01-P; 6714-01-P; 6210-01-P; 4810-33-P