[Federal Register Volume 77, Number 52 (Friday, March 16, 2012)]
[Notices]
[Pages 15755-15757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-6332]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

SUMMARY: Background. Notice is hereby given of the final approval of a 
proposed information collection by the Board of Governors of the 
Federal Reserve System (Board) under OMB delegated authority, as per 5 
CFR 1320.16 (OMB Regulations on Controlling Paperwork Burdens on the 
Public). Board-approved collections of information are incorporated 
into the official OMB inventory of currently approved collections of 
information. Copies of the Paperwork Reduction Act Submission, 
supporting statements and approved collection of information 
instruments are placed into OMB's public docket files. The Federal 
Reserve may not conduct or sponsor, and the respondent is not required 
to respond to, an information collection that has been extended, 
revised, or implemented on or after October 1, 1995, unless it displays 
a currently valid OMB control number.

FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance Officer--Cynthia Ayouch--Division of 
Research and Statistics, Board of Governors of the Federal Reserve 
System, Washington, DC 20551 (202-452-3829). Telecommunications Device 
for the Deaf (TDD) users may contact (202-263-4869), Board of Governors 
of the Federal Reserve System, Washington, DC 20551.
OMB Desk Officer--Shagufta Ahmed--Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, Room 10235, 725 17th Street NW., Washington, DC 20503.

Final Approval Under OMB Delegated Authority of the Revision, Without 
Extension, of the Following Reports

    Report title: Consolidated Financial Statements for Bank Holding 
Companies.
    Agency form number: FR Y-9C.
    OMB control number: 7100-0128.
    Frequency: Quarterly.
    Reporters: Bank holding companies (BHCs).
    Estimated annual reporting hours: 192,561 hours.
    Estimated average hours per response: 47.15 hours.
    Number of respondents: 1,021.
    General description of report: This information collection is 
mandatory (12 U.S.C. 1844(c)). Confidential treatment is not routinely 
given to the data in this report. However, confidential treatment for 
the reporting information, in whole or in part, can be requested in 
accordance with the instructions to the form, pursuant to sections 
(b)(4), (b)(6) and (b)(8) of the Freedom of Information Act (5 U.S.C. 
552(b)(4), (b)(6) and (b)(8)).
    Abstract: The FR Y-9 family of reports historically has been, and 
continues to be, the primary source of financial information on BHCs 
between on-site inspections. Financial information from these reports 
is used to detect emerging financial problems, to review performance 
and conduct pre-inspection analysis, to monitor and evaluate capital 
adequacy, to evaluate BHC mergers and acquisitions, and to analyze a 
BHC's overall financial condition to ensure safe and sound operations.
    The FR Y-9C consists of standardized financial statements similar 
to the Federal Financial Institutions Examination Council (FFIEC) 
Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031 
& 041; OMB No. 7100-0036) filed by commercial banks. The FR Y-9C 
collects consolidated data from top-tier BHCs with total consolidated 
assets of $500 million or more. (Under certain circumstances defined in 
the General Instructions, BHCs under $500 million may be required to 
file the FR Y-9C.)
    Current Actions: On November 21, 2011, the Federal Reserve 
published a notice in the Federal Register (76 FR 71968) requesting 
public comment for 60 days on the revision, without extension, of the 
FR Y-9C report. The comment period for this notice expired on January 
20, 2012. The Federal Reserve received six comment letters on this 
proposal. In addition, the Federal Reserve, Federal Deposit Insurance 
Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) 
(the banking agencies) received these six comment letters and two 
additional comment letters on proposed revisions to the Consolidated 
Reports of Condition and Income (Call Reports) (FFIEC 031 & 041; OMB 
No. 7100-0036) that parallel the proposed revisions to the FR Y-9C and 
are taken into consideration for this proposal.
    The FR Y-9C changes proposed in the Federal Reserve's November 2011 
Federal Register notice, the first four of which were proposed for 
implementation in June 2012 and the last of which was proposed for 
implementation in March 2012, included:

[[Page 15756]]

     A new Schedule HI-C, Disaggregated Data on the Allowance 
for Loan and Lease Losses, in which institutions with total assets of 
$1 billion or more would report a breakdown by key loan category of the 
end-of-period allowance for loan and lease losses (ALLL) disaggregated 
on the basis of impairment method and the end-of-period recorded 
investment in held-for-investment loans and leases related to each ALLL 
balance;
     A new Schedule HC-U, Loan Origination Activity (in 
Domestic Offices), in which institutions with total assets of $500 
million or more would report, separately for several loan categories, 
the quarter-end amount of loans (in domestic offices) reported in 
Schedule HC-C, Loans and Lease Financing Receivables, that was 
originated during the quarter, and institutions with total assets of $1 
billion or more would also report for these loan categories the 
portions of the quarter-end amount of loans originated during the 
quarter that were (a) originated under a newly established loan 
commitment and (b) not originated under a loan commitment;
     New Memorandum items in Schedule HC-N, Past Due and 
Nonaccrual Loans, Leases, and Other Assets, for the total outstanding 
balance and related carrying amount of purchased credit-impaired loans 
accounted for under Accounting Standards Codification (ASC) Subtopic 
310-30 that are past due 30 through 89 days and still accruing, past 
due 90 days or more and still accruing, and in nonaccrual status;
     New items in Schedule HC-P, 1-4 Family Residential 
Mortgage Banking Activities, in which institutions with $1 billion or 
more in total assets and smaller institutions with significant mortgage 
banking activities would report the amount of representation and 
warranty reserves for 1-4 family residential mortgage loans sold (in 
domestic offices), with separate disclosure of reserves for 
representations and warranties made to U.S. government and government-
sponsored agencies and to other parties;
     Instructional revisions addressing the discontinued use of 
specific valuation allowances by savings and loan holding companies, 
and the accounting and reporting treatment for capital contributions in 
the form of cash or notes receivable.
    Further details concerning the preceding proposed FR Y-9C reporting 
changes may be found in Sections A.1 through A.5.(2) of the November 
2011 Federal Register notice.

Summary of Comments

    The Federal Reserve received comment letters from six entities on 
proposed revisions to the FR Y-9C: two banking organizations, two 
bankers' associations, a commercial lending software company, and a 
news organization. The banking agencies received these six comment 
letters and two additional comment letters from banking organizations 
on proposed changes to the Call Report.
    One bankers' association offered the general statement that its 
``members expressed no concerns with many of the [agencies'] proposed 
revisions.'' None of the commenters specifically addressed the 
reporting changes proposed for implementation as of March 31, 2012. All 
eight of the commenters addressed one or both of the two new schedules 
proposed to be added to the FR Y-9C as of June 30, 2012: Schedule HI-C, 
Disaggregated Data on the Allowance for Loan and Lease Losses (ALLL), 
and Schedule HC-U, Loan Origination Activity (in Domestic Offices). One 
bankers' association expressed support for the proposed new items for 
past due and nonaccrual purchased credit-impaired loans, which were 
also proposed to be added to the FR Y-9C as of June 30, 2012, and 
recommended ``that the [banking agencies] adopt these proposed 
revisions without change.'' The news organization supported the 
proposed collection of data on representation and warranty reserves for 
1-4 family residential mortgage loans beginning June 30, 2012. The 
Federal Reserve concurs with this commenter's suggestion that the 
instructions for the new items for these reserves clarify that 
representations and warranties made to mortgage insurers of loans sold 
fall within the scope of these items.
    In addition, the news organization recommended that the Federal 
Reserve consider significantly revising the information they collect on 
mortgage banking activities in Schedule HC-P by adding further detail 
in certain areas and deleting certain existing items. These 
recommendations go well beyond the Federal Reserve's current proposal 
to add new items for representation and warranty reserves to Schedule 
HC-P. The Federal Reserve will consider the news organization's ideas 
in conjunction with their evaluation of other possible FR Y-9C 
reporting revisions that would be included in a future proposal.
    After considering the comments received, the Federal Reserve is 
proceeding with the instructional revisions proposed for implementation 
as of the March 31, 2012, report date as well as the proposed new items 
for past due and nonaccrual purchased credit-impaired loans and 
representation and warranty reserves for 1-4 family residential 
mortgages effective as of the June 30, 2012, report date. As for the 
new schedules for disaggregated ALLL data and selected loan origination 
data proposed for implementation as of June 30, 2012, the Federal 
Reserve is continuing to evaluate these two proposed schedules in light 
of the comments received and will publish a separate Federal Register 
notice once a decision has been made with regard to these two proposed 
schedules. Because of the additional time necessary for the Federal 
Reserve to determine the outcome of proposed new FR Y-9C Schedules HI-C 
and HC-U and to allow sufficient lead time for affected institutions to 
prepare for any resulting new reporting requirements, the collection of 
disaggregated ALLL data and selected loan origination data would not 
take effect before the September 30, 2012, report date.
    The list below summarizes each of the FR Y-9C reporting changes 
included in the November 2011 proposal along with its implementation 
status:
     Proposed new Schedule HI-C, Disaggregated Data on the 
Allowance for Loan and Lease Losses: Remains under review by the 
Federal Reserve; not to be implemented before September 30, 2012;
     Proposed new Schedule HC-U, Loan Origination Activity (in 
Domestic Offices): Remains under review by the Federal Reserve; not to 
be implemented before September 30, 2012;
     New Memorandum items in Schedule HC-N, Past Due and 
Nonaccrual Loans, Leases, and Other Assets: Implement June 30, 2012;
     New items in Schedule HC-P, 1-4 Family Residential 
Mortgage Banking Activities: Implement June 30, 2012;
     Instructional revisions addressing the discontinuation of 
certain valuation allowances by savings and loan holding companies; and 
the accounting and reporting treatment for certain capital 
contributions: Implement March 31, 2012.
    Consistent with longstanding practice, for the June 30, 2012, 
report date, institutions may provide reasonable estimates for any new 
or revised FR Y-9C reporting item initially required to be reported as 
of that date for which the requested information is not readily 
available.


[[Page 15757]]


    Board of Governors of the Federal Reserve System, March 12, 
2012.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2012-6332 Filed 3-15-12; 8:45 am]
BILLING CODE 6210-01-P