[Federal Register Volume 79, Number 9 (Tuesday, January 14, 2014)]
[Notices]
[Pages 2527-2535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-00478]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Submission for OMB 
Review; Joint Comment Request

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

ACTION: Notice of information collection to be submitted to OMB for 
review and approval under the Paperwork Reduction Act of 1995.

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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, and the 
FDIC (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. On August 12, 2013, the agencies, under the auspices of 
the Federal Financial Institutions Examination Council (FFIEC), 
requested public comment for 60 days on proposed revisions to the 
regulatory capital components and ratios portion of Schedule RC-R, 
Regulatory Capital, in the Consolidated Reports of Condition and Income 
(Call Report or FFIEC 031 and FFIEC 041) and to the Regulatory Capital 
Reporting for Institutions Subject to the Advanced Capital Adequacy 
Framework (FFIEC 101). The proposed revisions to the Call Report and 
the FFIEC 101 are reflective of the revised regulatory capital rules 
issued by the agencies in July 2013 (revised regulatory capital rules).
    After considering the comments received on the proposed revisions, 
the FFIEC and the agencies will proceed with the proposed reporting 
revisions with some modifications as described in sections II and III 
of the SUPPLEMENTARY INFORMATION section below. The proposed revisions 
to the FFIEC 101 and, if applicable, Call Report Schedule RC-R would be 
effective March 31, 2014, for institutions subject to the advanced 
approaches risk-based capital rule (advanced approaches institutions) 
that are not savings and loan holding companies. Advanced approaches 
institutions that are savings and loan holding companies subject to the 
revised regulatory capital rules would begin reporting the revised 
FFIEC 101 effective March 31, 2015. All other institutions that are 
required to file the Call Report would begin reporting the revised Call 
Report Schedule RC-R effective March 31, 2015.

DATES: Comments must be submitted on or before February 13, 2014.

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: Because paper mail in the Washington, DC, area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by 
email if possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-0081 and 1557-0239, 400 7th Street SW., Suite 3E-218, 
Mail Stop 9W-11, Washington, DC 20219. In addition, comments may be 
sent by fax to (571) 465-4326 or by electronic mail to 
[email protected]. You may personally inspect and photocopy 
comments at the OCC, 400 7th 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) 649-6700. 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.

[[Page 2528]]

    All comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not enclose any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    Board: You may submit comments, which should refer to ``FFIEC 031, 
FFIEC 041, and FFIEC 101,'' by any of the following methods:
    Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at:  http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    Email: [email protected]. Include reporting form 
number in the subject line of the message.
    FAX: (202) 452-3819 or (202) 452-3102.
    Mail: Robert DeV. Frierson, 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 
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 9:00 
a.m. and 5:00 p.m. on weekdays.
    FDIC: You may submit comments, which should refer to ``FFIEC 031, 
FFIEC 041, and FFIEC 101,'' 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.
     Email: [email protected]. Include ``FFIEC 031, FFIEC 041, 
and FFIEC 101'' in the subject line of the message.
     Mail: Gary A. Kuiper, Counsel, Attn: Comments, Room NYA-
5046, 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 7:00 a.m. and 5:00 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 9:00 a.m. and 5:00 p.m. on business days.
    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; by fax to (202) 395-6974; or by email to [email protected].

FOR FURTHER INFORMATION CONTACT: For further information about the 
proposed revisions to the regulatory capital reporting requirements 
discussed in this notice, please contact any of the agency clearance 
officers whose names appear below. In addition, copies of the revised 
FFIEC 031, FFIEC 041, and FFIEC 101 forms and instructions can be 
obtained at the FFIEC's Web site (http://www.ffiec.gov/ffiec_report_forms.htm).
    OCC: Mary H. Gottlieb and Johnny Vilela, OCC Clearance Officers, 
(202) 649-5490, Legislative and Regulatory Activities Division, Office 
of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 
20219.
    Board: Cynthia Ayouch, 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.

SUPPLEMENTARY INFORMATION: The agencies are proposing to revise, 
without extension, the Call Report and to revise, with extension, the 
FFIEC 101, which are currently approved collections of information for 
each agency.
    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.
    Estimated Number of Respondents: 1,807 national banks and federal 
savings associations
    Estimated Time per Response: 56.19 burden hours per quarter to 
file.
    Estimated Total Annual Burden: 406,141 burden hours to file.
    Board:
    OMB Number: 7100-0036.
    Estimated Number of Respondents: 841 state member banks.
    Estimated Time per Response: 57.29 burden hours per quarter to 
file.
    Estimated Total Annual Burden: 192,724 burden hours to file.
    FDIC:
    OMB Number: 3064-0052.
    Estimated Number of Respondents: 4,325 insured state nonmember 
banks and state savings associations.
    Estimated Time per Response: 42.02 burden hours per quarter to 
file.
    Estimated Total Annual Burden: 726,946 burden hours to file.
    The estimated time per response for the quarterly filings of 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 filing of the Call Report as it is proposed to 
be revised is estimated to range from 18 to 750 hours per quarter, 
depending on an individual institution's circumstances.
    Report Title: Regulatory Capital Reporting for Institutions Subject 
to the Advanced Capital Adequacy Framework.
    Form Number: FFIEC 101.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    OCC:
    OMB Number: 1557-0239.
    Estimated Number of Respondents: 14 national banks and federal 
savings associations.
    Estimated Time per Response: 675 burden hours per quarter to file.
    Estimated Total Annual Burden: 37,800 burden hours to file.
    Board:
    OMB Number: 7100-0319.
    Estimated Number of Respondents: 20 state member banks, bank 
holding companies, and savings and loan holding companies.
    Estimated Time per Response: 675 burden hours per quarter to file.
    Estimated Total Annual Burden: 54,000 burden hours to file.
    FDIC:
    OMB Number: 3064-0159.
    Estimated Number of Respondents: 8 insured state nonmember banks 
and state savings associations.

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    Estimated Time per Response: 675 burden hours per quarter to file.
    Estimated Total Annual Burden: 21,600 burden hours to file.

General Description of Reports

    The Call Report information collections are mandatory for the 
following institutions: 12 U.S.C. 161 (national banks), 12 U.S.C. 324 
(state member banks), 12 U.S.C. 1817 (insured state nonmember 
commercial and savings banks), and 12 U.S.C. 1464 (savings 
associations) (collectively, Call Report filers). At present, except 
for selected data items, Call Report information collections are not 
given confidential treatment.
    The FFIEC 101 information collections are mandatory for 
institutions using the advanced approaches risk-based capital rule 
(advanced approaches institutions): 12 U.S.C. 161 (national banks), 12 
U.S.C. 324 and 12 U.S.C. 1844(c) (state member banks and bank holding 
companies, respectively), 12 U.S.C. 1467a(b) (savings and loan holding 
companies), 12 U.S.C. 1817 (insured state nonmember commercial and 
savings banks), and 12 U.S.C. 1464 (savings associations). Under the 
agencies' current practice, the FFIEC 101 information collections are 
given confidential treatment (5 U.S.C. 552(b)(4)) for reports submitted 
until the first report date after the reporting institution conducts a 
satisfactory parallel run. For reports collected as of that report date 
and thereafter, Schedules A and B and line items 1 and 2 of Schedule S 
of the institution's FFIEC 101 are no longer given confidential 
treatment. For the FFIEC 101 as it is proposed to be revised and 
consistent with the implementation timeline established by the revised 
regulatory capital rules, the agencies would make public the 
information collected on the FFIEC 101 Schedule A, except for a few 
advanced approaches-specific line items identified below, for all 
advanced approaches institutions regardless of their parallel run 
status starting with the report for the March 31, 2014, report date. 
Specific line items that would not be made public until after the 
reporting institution completes the parallel run process and receives 
notification from its primary federal supervisor pursuant to section 
121(d) of subpart E of the revised regulatory capital rules would 
include the information collected on the FFIEC 101, Schedule B, except 
for column D of the new items 31.a and 31.b, and line items 1 and 2 of 
Schedule S.

Abstract

    Call Report: Institutions submit Call Report data to the agencies 
each quarter for the agencies' use in monitoring the condition, 
performance, and risk profile of individual institutions and the 
industry as a whole. Call Report data provide the most current 
statistical data available for evaluating institutions' corporate 
applications, identifying areas of focus for on-site and off-site 
examinations, and monetary and other public policy purposes. The 
agencies use Call Report 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 data also are used to calculate institutions' 
deposit insurance and Financing Corporation assessments and national 
banks' and federal savings associations' semiannual assessment fees.
    FFIEC 101: Each advanced approaches institution is required to file 
quarterly regulatory capital data in the FFIEC 101, the extent of which 
depends on whether the institution has begun its parallel run period 
under the Advanced Capital Adequacy Framework. The agencies use these 
data to assess and monitor the levels and components of each reporting 
entity's risk-based capital requirements and the adequacy of the 
entity's capital under the Advanced Capital Adequacy Framework; to 
evaluate the impact and competitive implications of the Advanced 
Capital Adequacy Framework on both an individual reporting-entity and 
an industry-wide basis; and to supplement on-site examination 
processes. The reporting schedules also assist advanced approaches 
institutions in understanding expectations around the system 
development necessary for implementation and validation of the Advanced 
Capital Adequacy Framework.

Current Actions

I. Summary of the Proposed Revisions

    On August 12, 2013, the agencies requested comment on proposed 
revisions to the FFIEC 101 and the regulatory capital components and 
ratios portions of Call Report Schedule RC-R to reflect the revised 
regulatory capital rules \1\ (the proposal).\2\ The revisions would 
become effective for the March 31, 2014 report date, for advanced 
approaches institutions that are not savings and loan holding 
companies,\3\ and for the March 31, 2015 report date, for all other 
institutions that are required to file Call Report Schedule RC-R as 
well as advanced approaches institutions that are savings and loan 
holding companies subject to the revised regulatory capital rules.\4\
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    \1\ The revised regulatory capital rules were approved and 
issued by the agencies in July 2013. The revised regulatory capital 
rules were published in the Federal Register by the Board and the 
OCC on October 11, 2013. See 78 FR 62018. The revised regulatory 
capital interim final rule was published in the Federal Register by 
the FDIC on September 10, 2013. See 78 FR 55340.
    \2\ See 78 FR 48932.
    \3\ An advanced approaches institution as defined in section 100 
of the agencies' revised regulatory capital rules (i) has 
consolidated total assets (excluding assets held by an insurance 
underwriting subsidiary) on its most recent year-end regulatory 
report equal to $250 billion or more; (ii) has consolidated total 
on-balance sheet foreign exposure on its most recent year-end 
regulatory report equal to $10 billion or more (excluding exposures 
held by an insurance underwriting subsidiary), as calculated in 
accordance with the FFIEC 009 Country Exposure Report; (iii) is a 
subsidiary of a depository institution that uses the advanced 
approaches pursuant to subpart E of 12 CFR part 3 (OCC), 12 CFR part 
217 (Board), or 12 CFR part 325 (FDIC) to calculate its total risk-
weighted assets; (iv) is a subsidiary of a bank holding company or 
savings and loan holding company that uses the advanced approaches 
pursuant to 12 CFR part 217 to calculate its total risk-weighted 
assets; or (v) elects to use the advanced approaches to calculate 
its total risk-weighted assets. See 78 FR 62204 (OCC and Board); 78 
FR 55523 (FDIC). Section III of this notice discusses the filing 
requirements for the FFIEC 101 once an institution meets one or more 
of the threshold criteria for purposes of the advanced approaches 
rule or elects to use the advanced approaches rule.
    \4\ The agencies expect to publish at a later date a request for 
comment on a separate proposal to revise the risk-weighted assets 
portion of Call Report Schedule RC-R to incorporate the standardized 
approach for calculating risk-weighted assets under the revised 
regulatory capital rules. The revisions to the risk-weighted assets 
portion of Schedule RC-R would take effect March 31, 2015. The 
agencies have decided to propose changes to Schedule RC-R in two 
stages to allow interested parties to better understand the proposed 
revisions and focus their comments on areas of particular interest. 
Therefore, for report dates in 2014, all Call Report filers will 
continue to report risk-weighted assets in the portion of Schedule 
RC-R that contains existing data items 34 through 62 and Memorandum 
items 1 and 2 of current Schedule RC-R, but this portion of the 
schedule will be designated Part II and the data items will retain 
their existing numbers.
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    The agencies collectively received comments on the proposal from 
three entities: two banking organizations and one bankers' association. 
The commenters asked for clarification on the applicability and 
effective dates of the proposed reporting requirements and for 
additional instructions on

[[Page 2530]]

certain line items.\5\ The agencies have addressed all substantive 
comments received as described in detail in sections II and III below.
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    \5\ In addition, one other commenter on the proposal urged the 
agencies to revise the regulatory capital treatment of the allowance 
for loan and lease losses (ALLL) if the Financial Accounting 
Standards Board (FASB) changes the accounting standards applicable 
to ALLL. The agencies note that this comment suggests a substantive 
change to the revised regulatory capital rules and is outside the 
scope of the proposed changes to the Call Report and FFIEC 101.
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II. Proposed Call Report Schedule RC-R, Part I.B

    Consistent with the proposal, in March 2014, the existing and 
proposed regulatory capital components and ratios portion of Schedule 
RC-R would be designated Parts I.A and I.B, respectively. Call Report 
filers that are not advanced approaches institutions would file Part 
I.A, which includes existing data items 1 through 33 of current 
Schedule RC-R. Call Report filers that are subject to the advanced 
approaches and to the revised regulatory capital rules effective 
January 1, 2014, would be required to file Part I.B in March 2014, 
which includes the reporting revisions proposed herein, consistent with 
the revised regulatory capital rules. In March 2015, Part I.A would be 
removed and Part I.B would be designated Part I; all Call Report filers 
would then submit Part I.
    As proposed, Part I.B, Regulatory Capital Components and Ratios, 
would be divided into the following sections: (A) Common equity tier 1 
capital; (B) common equity tier 1 capital: Adjustments and deductions; 
(C) additional tier 1 capital; (D) tier 2 capital; (E) total assets for 
the leverage ratio; (F) capital ratios; and (G) capital buffer. A brief 
description of each of these sections and the corresponding line items 
is provided below. The agencies did not receive any comments on the 
overall structure of the proposed Schedule RC-R, Part I.B and thus will 
proceed with the overall structure of Part I.B, as proposed. The 
agencies will make clarifications to certain line items to reflect 
public comments, as discussed below.
    The agencies received several questions regarding the reporting 
treatment for items subject to transition provisions in Schedule RC-R, 
Part I.B. Specifically, commenters asked for clarification on reporting 
transition amounts of items subject to regulatory capital adjustments 
and deductions and reporting disallowed amounts during the transition 
period. As described below in section II.B of this notice, transition 
amounts, as proposed, are to be reported in the Schedule RC-R line item 
applicable to the particular regulatory capital adjustment or 
deduction, while the otherwise disallowed portion of each of these 
items is either risk-weighted or deducted from additional tier 1 
capital, depending on the item.
    Commenters also asked the agencies for clarification of the 
reporting of the risk-weighted portion of an item subject to deduction 
in Schedule RC-R. The agencies are clarifying, and the instructions for 
Part I.B of Schedule RC-R will indicate, that the risk-weighted portion 
of such items as proposed must be reported in the line item appropriate 
to the item subject to deduction in Schedule RC-R, Part II, Risk-
Weighted Assets. In addition, the agencies are clarifying that even 
though certain deductions may be net of associated deferred tax 
liabilities (DTLs), the risk-weighted portion of those items may not be 
reduced by the associated DTLs.
    For example, for institutions subject to the revised regulatory 
capital rules on January 1, 2014, the appropriate line item for 
reporting the risk-weighted portion of mortgage servicing assets (MSAs) 
that are not deducted from common equity tier 1 capital, for report 
dates in 2014, is Schedule RC-R, Part II, item 42, ``All other 
assets.'' The risk-weighted asset portion of MSAs may not be reduced by 
any associated DTLs. Also, the line items in Part II will be renumbered 
in 2015 because, as indicated in footnote 4 of this notice, the 
agencies expect to propose revisions to the risk-weighted assets 
portion of Call Report Schedule RC-R to incorporate the standardized 
approach for calculating risk-weighted assets under the revised 
regulatory capital rules. The agencies will update the Part II line 
item references as appropriate in the Schedule RC-R instructions for 
2015 after the revisions to the risk-weighted assets portion of the 
schedule are finalized.
    The agencies received several questions related to the calculation 
of the leverage ratio and the specific deductions from the leverage 
ratio denominator. One commenter asked the agencies to confirm that all 
banking organizations, including savings associations, must use average 
total assets from Call Report Schedule RC-K, item 9, to calculate total 
assets for the leverage ratio. The agencies are confirming that average 
total assets from Schedule RC-K, item 9, must be used to calculate 
total assets for the leverage ratio by advanced approaches institutions 
beginning in March 2014 and by all other institutions, including 
savings associations, beginning in March 2015. The same commenter asked 
the agencies to confirm the deductions from common equity tier 1 
capital and additional tier 1 capital that must be made to calculate 
total assets for the leverage ratio. The agencies are specifying the 
deductions that must be made to calculate total assets for the leverage 
ratio, as described in section II.E below.
    One commenter asked the agencies to confirm the effective dates for 
reporting the capital conservation buffer and the supplementary 
leverage ratio. The agencies are confirming that the capital 
conservation buffer (and any other applicable buffer for advanced 
approaches institutions) must be reported for report dates after 
January 1, 2016. Advanced approaches institutions must report the 
supplementary leverage ratio for report dates after January 1, 2015 
(see section III of this notice for additional details on the reporting 
of this line item by advanced approaches institutions). The agencies 
are also shading out the corresponding cells in the draft reporting 
form for Schedule RC-R, Part I.B, to show that institutions should not 
report these items until they become effective.
    A brief description of the proposed revisions and the comments 
received on specific line items in Schedule RC-R, Part I.B, are 
provided below.

A. Schedule RC-R, Part I.B, Items 1-5: Common Equity Tier 1 Capital

    Under the proposal, line items 1 through 5 would collect 
information regarding the new regulatory capital component, common 
equity tier 1 capital. The agencies did not receive any comments on 
these line items and thus would retain the proposed line items without 
modification.

B. Schedule RC-R, Part I.B, Items 6-19: Common Equity Tier 1 Capital: 
Adjustments and Deductions

    Proposed line items 6 through 19 reflect adjustments and deductions 
to common equity tier 1 capital, as described in section 22 of the 
revised regulatory capital rules. The agencies received a number of 
questions on reporting items subject to transition provisions. 
Specifically, questions related to items 7 through 10 asked where the 
transition amounts of the adjustments and deductions covered by these 
specific items are to be reported. The instructions for proposed 
Schedule RC-R, Part I.B, explain that during the transition period as 
proposed, institutions must report the transition amounts of these 
adjustments and deductions, rather than their fully phased-in amounts, 
in items 7 through

[[Page 2531]]

10. Institutions would not be required to report fully phased-in 
amounts in items 7 through 10 until the transition period ends.
    For example, during the transition period, an institution must 
report in item 7 the appropriate transition amount of intangible assets 
(other than goodwill and mortgage servicing assets (MSAs)), net of 
DTLs, as described in the instructions for that line item. The 
institution must also risk weight the non-deducted portion of that item 
at 100 percent and report it in Schedule RC-R, Part II, item 42, ``All 
other assets.'' As another example, during the transition period, an 
institution must report in item 8 the appropriate transition amount of 
deferred tax assets (DTAs) that arise from net operating loss and tax 
credit carryforwards, net of any related valuation allowances and net 
of DTLs, calculated as a percentage of the adjustment applied to common 
equity tier 1 capital. The institution must then report during the 
transition period the remaining balance of DTAs that arise from net 
operating loss and tax credit carryforwards, net of any related 
valuation allowances and net of DTLs, in Schedule RC-R, Part I.B, item 
24, ``Additional tier 1 capital deductions.''
    A commenter also asked about risk weighting the non-deducted 
portion of the threshold items (that is, significant investments in the 
capital of unconsolidated financial institutions in the form of common 
stock, net of associated DTLs; MSAs, net of associated DTLs; and DTAs 
arising from temporary differences that could not be realized through 
net operating loss carrybacks, net of related valuation allowances and 
net of DTLs). The instructions for proposed Schedule RC-R, Part I.B, 
explain that during the transition period the non-deducted portion of 
these threshold items must be risk weighted at 100 percent in 
accordance with section 300 of the revised regulatory capital rules and 
reported in Schedule RC-R, Part II, ``All other assets.'' For report 
dates after January 1, 2018, the non-deducted portion of the threshold 
items must be risk-weighted at 250 percent in accordance with section 
22 of the revised regulatory capital rules and reported in the 
appropriate asset category in Schedule RC-R, Part II.

C. Schedule RC-R, Part I.B, Items 20 Through 25: Additional Tier 1 
Capital, and Item 26: Tier 1 Capital

    Proposed line items 20 through 25 pertain to the reporting of 
additional tier 1 capital elements under section 20 of the revised 
regulatory capital rules, along with related adjustments for non-
qualifying capital instruments subject to phase-out. The agencies did 
not receive any comments on these line items and thus would retain the 
proposed line items without modification.

D. Schedule RC-R, Part I.B, Items 27 Through 34: Tier 2 Capital, and 
Item 35: Total Capital

    Proposed line items 27 through 34 pertain to the reporting of tier 
2 capital elements under section 20 of the revised regulatory capital 
rules, along with related adjustments for non-qualifying capital 
instruments subject to phase-out. The agencies did not receive any 
comments on these line items and thus would retain the proposed line 
items without modification.

E. Schedule RC-R, Part I.B, Items 36 Through 39: Total Assets for the 
Leverage Ratio

    Under the proposal, institutions would report data for the 
calculation of the leverage ratio in items 36 through 39. As noted 
above, the agencies received two questions on the calculation of the 
total assets for the leverage ratio. First, a commenter asked the 
agencies to confirm that all banking organizations, including savings 
associations, must use average total assets from Call Report Schedule 
RC-K, item 9, to calculate total assets for the leverage ratio. The 
agencies are confirming that average total assets from Schedule RC-K, 
item 9, must be reported in Schedule RC-R, Part I.B, item 36, ``Average 
total consolidated assets,'' by advanced approaches institutions 
beginning in March 2014 and by all other institutions, including 
savings associations, beginning in March 2015.
    Second, the same commenter asked the agencies to confirm the 
deductions from common equity tier 1 capital and additional tier 1 
capital that must be made to calculate total assets for the leverage 
ratio. Specifically, the commenter asked whether the deductions made in 
Schedule RC-R, Part I.B, items 13 through 15, also must be made for 
purposes of the leverage ratio. The agencies are clarifying the 
reporting instructions for proposed Schedule RC-R, Part I.B, items 37 
and 38, to address the commenter's question. The agencies confirm that 
the amounts deducted from common equity tier 1 and additional tier 1 
capital in Schedule RC-R, Part I.B, items 6, 7, 8, 10.b, 11, 13 through 
17, and 24 must be included in Schedule RC-R, Part I.B, item 37. In 
addition, any other amounts that are deducted from common equity tier 1 
and additional tier 1 capital, such as deductions related to AOCI-
adjustments, must be included in Schedule RC-R, Part I.B, item 38.

F. Schedule RC-R, Part I.B, Item 40: Total Risk-weighted Assets and 
Items 41 Through 45: Capital Ratios

    Under the proposal, institutions would report data for the 
calculation of risk-weighted assets and capital ratios in items 41 
through 45. The agencies received one question on this section of the 
proposal. Specifically, a commenter asked the agencies to confirm the 
effective date of reporting the supplementary leverage ratio in item 
45. The agencies are modifying the Schedule RC-R, Part I.B, reporting 
form and the instructions for proposed item 45 to clarify that this 
item must be reported for report dates after January 1, 2015.
    Under the proposal, for report dates in 2014, Call Report filers 
that are advanced approaches institutions would continue applying the 
general risk-based capital rules to calculate their total risk-weighted 
assets, which will continue to be reported in current item 62 of the 
risk-weighted assets portion of Schedule RC-R (to be designated Part II 
of the schedule in March 2014). This total risk-weighted assets amount 
would then also be reported in item 40.a of Part I.B of Schedule RC-R 
for report dates in 2014 and would serve as the denominator for the 
risk-based capital ratios reported in Schedule RC-R, Part I.B, items 41 
through 44, column A. Effective March 31, 2015, all Call Report filers 
would be required to apply the standardized approach, described in 
subpart D of the revised regulatory capital rules, to calculate and 
report their risk-weighted assets in item 40.a and the risk-based 
capital ratios in items 41 through 44, column A, of the regulatory 
capital components and ratios portion of Schedule RC-R.
    Advanced approaches institutions would report items 40 through 45 
on proposed Schedule RC-R, Part I.B, as follows.
     For report dates in 2014, these institutions would 
continue applying the general risk-based capital rules to report their 
total risk-weighted assets in item 40.a, which would serve as the 
denominator of the ratios reported in items 41 through 44, column A.
     Starting on March 31, 2015, these institutions would apply 
the standardized approach, described in subpart D of the revised 
regulatory capital rules, to calculate and report their risk-weighted 
assets in item 40.a and the regulatory capital ratios in items 41 
through 44, column A.
     After they conduct a satisfactory parallel run, these 
institutions would

[[Page 2532]]

report their total risk-weighted assets (item 40.b) and regulatory 
capital ratios (items 41 through 44, column B) using the advanced 
approaches rule.
     In addition, starting on March 31, 2015, these 
institutions would report a supplementary leverage ratio in item 45, as 
described in section 10 of the revised regulatory capital rules.
    The agencies did not receive any comments on the proposed reporting 
of the regulatory capital ratios by advanced approaches institutions 
and thus would retain this section of the proposal without 
modification.

G. Schedule RC-R, Part I.B, Items 46 Through 48: Capital Buffer

    Under the proposal, an institution's capital conservation buffer 
and related information would be reported in items 46 through 48. The 
agencies received a question asking to confirm the effective date for 
reporting items 46 through 48. The agencies are modifying the Schedule 
RC-R, Part I.B, reporting form and the instructions for proposed items 
46 through 48 to clarify that these items become effective for report 
dates after January 1, 2016. Until March 31, 2016, the corresponding 
cells in the draft reporting form for Schedule RC-R, Part I.B, would be 
shaded out.

III. Discussion of the Proposed FFIEC 101 Changes

    The proposed revisions to the FFIEC 101 Schedule A would 
incorporate the Basel III capital disclosure template in its entirety, 
with some minor changes to the titles of the template's line items, 
consistent with the revised regulatory capital rules and the accounting 
terminology of U.S. generally accepted accounting principles (GAAP). To 
ensure transparency of reporting regulatory capital by all advanced 
approaches institutions, the agencies would, consistent with the 
proposal, make public the information collected on the proposed revised 
Schedule A, except for a few specific line items identified below, 
starting with the March 31, 2014, report date, regardless of an 
advanced approaches institution's parallel run status. The agencies 
also proposed to continue granting confidential treatment to certain 
items that are dependent on the implementation of the advanced 
approaches systems before an advanced approaches institution completes 
its parallel run period.
    The agencies collectively received comments on the FFIEC 101 from 
one entity, a bankers' association. This commenter asked the agencies 
to clarify when an institution is required to file the FFIEC 101 report 
if the institution has triggered the criteria for applying the advanced 
approaches rule but has not yet begun its parallel run period. The 
agencies are clarifying that an institution would begin completing 
FFIEC 101 Schedule A at the end of the quarter after the quarter in 
which the institution triggers one of the threshold criteria for 
applying the advanced approaches rule or elects to use the advanced 
approaches rule.\6\ However, the institution would not be required to 
report those Schedule A items that depend on the implementation of the 
advanced approaches rules (specifically, items 12, 50, 61 through 68, 
78 through 79, and 86 through 90) and all the other schedules of the 
FFIEC 101 until the end of the first quarter in which the institution 
has begun its parallel run period.
---------------------------------------------------------------------------

    \6\ An institution is deemed to have elected to use the advanced 
approaches rule on the date that its primary federal supervisor 
receives from the institution a board-approved implementation plan 
pursuant to section 121(b)(2) of the revised regulatory capital 
rules. After that date, in addition to being required to report on 
the FFIEC 101, Schedule A, the institution may no longer apply the 
AOCI opt-out election in section 22(b)(2) of the revised regulatory 
capital rules and it becomes subject to the supplementary leverage 
ratio in section 10(c)(4) of the revised regulatory capital rules 
and its associated transition provisions.
---------------------------------------------------------------------------

    The same commenter asked how an advanced approaches institution 
that has not completed its parallel run period should report its 
supplementary leverage ratio in Call Report Schedule RC-R and in FFIEC 
101 Schedule A, since such an advanced approaches institution has a 
longer time period in which to submit the FFIEC 101 than the time 
period for submitting the Call Report. The agencies note that the 
calculation of the supplementary leverage ratio does not depend on the 
advanced approaches systems and thus this ratio can be calculated for 
purposes of the Call Report independent of an institution's preparation 
and submission of the FFIEC 101 report. Accordingly, consistent with 
the proposal, an advanced approaches institution that has not completed 
its parallel run would report the supplementary leverage ratio in Call 
Report Schedule RC-R and then it would report the details of its 
calculation of the supplementary leverage ratio on FFIEC 101 Schedule A 
by this report's later submission deadline. Similar to current 
reporting practices, if an institution calculates its FFIEC 101 data 
and discovers that the supplementary leverage ratio reported on its 
Call Report is not correct, the institution should submit an amended 
Call Report with the corrected information.
    The commenter also asked for clarification of a limited number of 
line item instructions in Schedules A, B, H through O, and Q. The 
agencies are clarifying the instructions for these line items to the 
extent considered appropriate by revising and expanding specific 
instructions.
    The agencies also note that the FFIEC 101 report title would be 
modified from ``Risk-Based Capital Reporting for Institutions Subject 
to the Advanced Capital Adequacy Framework'' to ``Regulatory Capital 
Reporting for Institutions Subject to the Advanced Capital Adequacy 
Framework.'' In addition, the agencies are modifying the name of 
Schedule A from ``Schedule A-Advanced Risk-based Capital'' to 
``Schedule A-Advanced Approaches Regulatory Capital.'' These 
modifications are consistent with the proposed revisions to the FFIEC 
101, which entail the collection of data on regulatory capital and not 
just risk-based capital.

A. Schedule A: Advanced Approaches Regulatory Capital

    Under the proposal, revised FFIEC 101 Schedule A incorporates the 
Basel III common disclosure template to ensure consistency and 
comparability of reporting of regulatory capital elements by advanced 
approaches institutions. Although the proposed revisions to Schedule A 
of the FFIEC 101 are consistent with the regulatory capital reporting 
approach followed in Call Report Schedule RC-R, Part I.B, as described 
in section II of this notice, Schedule A provides a more granular 
breakdown of regulatory capital elements, deductions and adjustments, 
and regulatory capital instruments subject to phase-out, consistent 
with the Basel III common disclosure template.
    The agencies received a number of questions on the reporting 
treatment for items subject to transition provisions, as described in 
section II.B of this notice. The agencies have clarified the reporting 
instructions for the applicable proposed line items in Schedule RC-R, 
Part I.B. The instructions for the corresponding line items in proposed 
revised FFIEC 101 Schedule A refer institutions to the Schedule RC-R, 
Part I.B, instructions. Since advanced approaches institutions would be 
able to continue to import the amounts to be reported in the majority 
of the line items in proposed revised FFIEC 101 Schedule A from 
proposed Call Report Schedule RC-R, Part I.B, the agencies do not 
believe it is necessary to modify the

[[Page 2533]]

instructions for the same line items of FFIEC 101 Schedule A.\7\
---------------------------------------------------------------------------

    \7\ Advanced approaches institutions that file the FR Y-9C 
rather than the Call Report would be able to import the amounts to 
be reported in the majority of the line items in proposed revised 
FFIEC 101 Schedule A from the Federal Reserve's proposed revised 
Schedule HC-R.
---------------------------------------------------------------------------

    Reporting confidential line items before completing the parallel 
run period: Under the proposal, the agencies would make public the 
information collected on proposed revised Schedule A, except for a few 
specific line items identified below, for all advanced approaches 
institutions, starting with the March 31, 2014, report date. The 
agencies proposed to grant confidential treatment to the following 
Schedule A items for report dates before an institution has completed 
its parallel run period: Item 78 (total eligible credit reserves 
calculated using advanced approaches); item 79 (amount of eligible 
credit reserves includable in tier 2 capital); item 86 (expected credit 
loss that exceeds eligible credit reserves); item 87 (advanced 
approaches risk-weighted assets); item 88 (common equity tier 1 capital 
ratio calculated using advanced approaches); item 89 (tier 1 capital 
ratio calculated using advanced approaches); and item 90 (total capital 
ratio calculated using advanced approaches). In addition, the agencies 
proposed that, before the completion of its parallel run period, an 
institution would report ``zero'' in line item 12 (expected credit loss 
that exceeds eligible credit reserves) and would complete line item 50 
(eligible credit reserves includable in tier 2 capital) and line item 
60 (total risk-weighted assets) by applying the general risk-based 
capital rules in 2014 and the standardized approach in 2015. Under the 
proposal, for the report dates after an institution conducts a 
satisfactory parallel run, the entire Schedule A would be made public.
    The agencies did not receive any comments on making public the 
information collected on proposed revised Schedule A, as described 
above, and thus retain the proposed approach without modification.
    Supplementary leverage ratio: Proposed line items 91 through 98 in 
Schedule A would collect data on a new supplementary leverage ratio 
requirement for advanced approaches institutions, effective March 31, 
2015. As described in section II.F of this notice, a commenter asked 
the agencies to confirm the effective date for reporting the 
supplementary leverage ratio. The agencies have modified the proposed 
reporting form and the instructions for items 91 through 98 of Schedule 
A to clarify that these items must be reported for report dates after 
January 1, 2015. Until such time, the corresponding cells in the 
reporting form for Schedule A would be shaded out.

B. Schedules B, C, D, H, I, J, P, Q, R, and S: Risk-weighted Assets

    The proposal described proposed revisions to several of the risk-
weighted assets schedules in the FFIEC 101, which are intended to be 
consistent with the revised advanced approaches rules to calculate 
risk-weighted assets. The proposal would revise Schedules B, C, D, H, 
I, J, P, Q, and R as follows:
     Under Schedule B (summary table), the agencies proposed 
new line items to reflect the proposed changes in schedules C through 
R.
     Under Schedules H and J, the agencies proposed new line 
items to capture Credit Valuation Adjustment (CVA) amounts.
     Under Schedule P, the agencies proposed an updated 
securitization table.
     Under Schedule Q, the agencies proposed a new table to 
reflect cleared transactions.
     Under Schedules C, D, H, I, and J, the agencies proposed 
to collect data on exposures subject to a 1.25 asset correlation 
factor.
     Under Schedules H, I, and J, the agencies proposed data 
collections related to the internal models methodology (IMM), margin 
period of risk, and specific wrong-way risk.
     Under Schedule R, the agencies proposed removing items 
pertaining to an equity exposure treatment no longer permitted under 
the revised advanced approaches rule.
    The agencies received comments from one commenter on the proposed 
revisions to these schedules. The following highlights only those areas 
of the proposed revisions for which the agencies received comments.
1.06 Scaling Multiplier and ``Assets Not Included in a Defined Exposure 
Category'' in Schedule B
    The agencies did not propose to revise the FFIEC 101 regarding the 
1.06 scaling multiplier in existing line item 28 of Schedule B, which 
was proposed to be renumbered as line item 30, ``Total credit risk 
weighted assets (Cell G-29 x 1.06).'' The commenter asked whether the 
1.06 multiplier should be applied to all credit risk exposures, 
including ``Assets Not Included in a Defined Exposure Category,'' non-
material portfolios, mortgage servicing rights, DTAs, and 
securitization exposures subject to a 1,250 percent risk weight.
    The agencies reviewed the comment and determined that no change to 
renumbered line item 30 is necessary. Renumbered line item 27 in 
proposed revised Schedule B, ``Assets Not Included in a Defined 
Exposure Category,'' has always been subject to the 1.06 scaling 
multiplier. In addition, consistent with the revised regulatory capital 
rules, wholesale, retail, securitization, and equity exposures are all 
subject to the 1.06 multiplier. The CVA capital requirement is 
explicitly singled out in the revised regulatory capital rules as not 
being subject to the 1.06 multiplier. Therefore, all exposures except 
for the CVA charge are subject to the 1.06 scaling multiplier, as 
proposed for Schedule B. The agencies also are clarifying in the 
Schedule B instructions that exposures representing items in process of 
collection that are assigned a risk weight of 20 percent should be 
reported in line item 27, ``Assets Not Included in a Defined Exposure 
Category.''
CVAs and Weighted Average Maturity Calculation in Schedules B, H, and J
    The agencies proposed to insert memoranda items in Schedule H 
(Wholesale Exposure: Eligible Margin Loans, Repo-Style Transactions, 
and OTC Derivatives with Cross-Product Netting) and Schedule J 
(Wholesale Exposure: OTC Derivatives No Cross-Product Netting) to 
reflect the new CVA requirements for over-the-counter (OTC) derivative 
activities under the revised regulatory capital rules.
    The commenter observed that the CVA requirement is a portfolio 
calculation and would therefore encompass transactions with and without 
cross-product netting. The commenter sought clarification on where 
institutions should report the CVA exposure and risk-weighted asset 
amounts since each institution would only be reporting the CVA 
information on a single line item (rather than the two proposed line 
items in Schedules H and J). In addition, the commenter requested 
clarification on the calculation of weighted average maturity.
    In response to this comment, the agencies have decided to remove 
the CVA memoranda items from Schedules H and J and instead collect this 
information in Schedule B. The agencies believe this is the appropriate 
location for reporting CVA information because Schedules H and J would 
otherwise needlessly require reporting institutions to distinguish 
between derivative transactions with and without cross-product netting 
for purposes of allocating CVAs measured at the

[[Page 2534]]

portfolio level to subsets of the portfolio. Therefore, the agencies 
have agreed to insert the following line items in Schedule B: Line item 
31.a, ``Credit valuation adjustment--simple approach,'' and line item 
31.b: ``Credit valuation adjustment--advanced approach.'' For the 
relevant Schedule B line item (either 31.a or 31.b), the reporting 
institutions would be required to report the amounts for risk-weighted 
assets and the exposure at default of exposures used to calculate CVA. 
The exposure at default information pertaining to CVA would remain 
confidential, even after an institution completes its parallel run 
period. These line items would replace proposed Schedule B line item 
31, ``Total CVA RWA for OTC derivative transactions.''
    In addition, if institutions apply a maturity floor, the general 
instructions for Schedule B clarify that reporting institutions should 
be consistent in the methodology they employ for calculating the 
weighted average maturity amount.
Holding Period or Margin Period of Risk in Schedules H, I, and J
    The agencies proposed to insert memoranda items in Schedule H 
(Wholesale Exposure: Eligible Margin Loans, Repo-Style Transactions, 
and OTC Derivatives with Cross-Product Netting), Schedule I (Wholesale 
Exposure: Eligible Margin Loans and Repo-Style Transactions No Cross-
Product Netting), and Schedule J (Wholesale Exposure: OTC Derivatives 
No Cross-Product Netting) to reflect the new capital requirements for 
the margin period of risk and wrong-way risk in the advanced 
approaches. The calculations and requirements associated with margin 
period of risk and wrong-way risk are described in section 132 of the 
revised regulatory capital rules.
    The commenter asked how to report securities that have a ``holding 
period or margin period of risk set for 20 days,'' but also meet the 
criteria for ``holding period or margin period of risk set for at least 
twice the minimum holding period that would otherwise be used (due to 
at least 3 disputes).'' The agencies have agreed to clarify in the 
instructions that transactions meeting both criteria should be reported 
in one location under column C, ``Holding period or margin period of 
risk set for at least twice the minimum holding period that would 
otherwise be used (due to at least 3 disputes).''
Reporting the Credit Scoring System in Schedules K Through O
    In their draft of the proposed revised FFIEC 101 reporting form, 
the agencies inadvertently removed the text field from existing item 
18, which the agencies proposed to renumber as memorandum item 2, 
``Credit scores shown in Column O are from which credit scoring 
system(s)?'' The agencies have agreed to correct this design error by 
restoring the text field, consistent with the public comment.
Whether Exposure Amounts Are Inclusive of Initial Margin in Schedule Q
    The agencies proposed a new Schedule Q (Cleared Transactions) to 
capture exposures to central clearing parties (CCPs), consistent with 
section 133 of the revised regulatory capital rules. The commenter 
sought clarification on whether proposed line items 3 and 4 were 
inclusive of initial margin. The agencies have agreed to clarify the 
instructions, including a reference to the definition of a trade 
exposure under the capital rules, which explains that the line item 
values in question should be inclusive of initial margin.
250 Percent Risk Weight Category for Significant Investments in 
Unconsolidated Financial Institutions in Schedule R
    The commenter highlighted that the proposed revisions to Schedule R 
(Equity Exposures) did not include a new field for equity exposures 
receiving a 250 percent risk weight that are significant investments in 
unconsolidated financial institutions that fall below the 10 and 15 
percent deduction thresholds. Accordingly, the agencies have agreed to 
insert a field for this risk weight category as line item 7 in Schedule 
R. (Thus, line items 7 through 13 in the initial draft of proposed 
revised Schedule R would be renumbered as line items 8 through 14.)
Schedule S: Operational Risk
    The agencies originally did not propose to revise Schedule S: 
Operational Risk. However, consistent with prior feedback received from 
reporting institutions, the agencies are proposing to clarify the 
existing instructions for several line items in Schedule S. The 
agencies believe these changes do not result in the collection of any 
new data, nor do they impact where institutions report operational risk 
data in Schedule S. Clarifications have been made to the instructions 
for the following Schedule S line items:
     Line Item 3, ``Expected Operational Loss (EOL)'';
     Line item 5, ``Dependence Assumptions'';
     For items 8 through 15, the instructions indicate that 
legal reserves should be included for the purpose of determining 
frequency counts, total loss amounts, and loss maximums;
     Line item 9, ``Highest dollar threshold applied in 
modeling internal operational loss event data'';
     Line items 11 through 15 related to loss-amount 
information;
     Line item 16, ``How many individual scenarios were used in 
calculating the risk-based capital requirement for operational risk'';
     Line item 17, ``What is the dollar value of the largest 
individual scenario''; and
     Line item 18, ``Number of scenarios in the following 
ranges (e.g., >=$1 million and <$10 million).''

IV. Initial Reporting

    For the March 31, 2014, and March 31, 2015, report dates, as 
applicable, institutions may provide reasonable estimates for any new 
or revised Call Report and FFIEC 101 items initially required to be 
reported as of that date for which the requested information is not 
readily available.

V. Request for Comment

    Public comment is requested on all aspects of this joint notice. In 
particular, do advanced approaches institutions expect that making any 
specific line items on proposed revised FFIEC 101 Schedule A public 
would cause them competitive or other harm? If so, please identify the 
specific line items and describe in detail the nature of the harm.
    Additionally, comments are invited on:
    (a) Whether 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.
    Comments submitted in response to this joint notice will be shared 
among

[[Page 2535]]

the agencies. All comments will become a matter of public record.

Stuart Feldstein,
Director, Legislative and Regulatory Activities Division, Office of the 
Comptroller of the Currency.
    Board of Governors of the Federal Reserve System, January 6, 
2014.
Robert deV. Frierson,
Secretary of the Board.
    Dated at Washington, DC, this 24th day of December, 2013.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2014-00478 Filed 1-13-14; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6710-01-P