[Federal Register Volume 79, Number 120 (Monday, June 23, 2014)]
[Notices]
[Pages 35634-35638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-14549]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Proposed Agency Information Collection Activities; 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: 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, 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. The agencies, under the auspices of the Federal 
Financial Institutions Examination Council (FFIEC), have approved the 
publication for public comment of proposed revisions to the risk-
weighted assets portion of Schedule RC-R, Regulatory Capital, and to 
line items related to securities lent and borrowed in Schedule RC-L, 
Derivatives and Off-Balance Sheet Items, in the Consolidated Reports of 
Condition and Income (Call Report or FFIEC 031 and FFIEC 041). The 
proposed revisions to the Call Report are consistent with the revised 
regulatory capital rules published by the agencies (revised regulatory 
capital rules).\1\
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    \1\ 78 FR 62018 (Oct. 11, 2013) (OCC and Board) and 78 FR 55340 
(Sept. 10, 2013) (FDIC).
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    For all institutions required to file the Call Report, the proposed 
revised risk-weighted assets portion of Schedule RC-R and the proposed 
changes to Schedule RC-L would take effect as of the March 31, 2015, 
report date.
    At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the FFIEC 
and the agencies should modify the proposed reporting revisions prior 
to giving final approval. The agencies will then submit the proposed 
reporting revisions to OMB for review and approval.

DATES: Comments must be submitted on or before August 22, 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: Commenters are encouraged to submit comments by email. Please 
use the title ``FFIEC 031 and 041'' to facilitate the organization and 
distribution of the comments. You may submit comments by any of the 
following methods:
     Email: [email protected].
     Mail: Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency, 400 7th Street SW., Suite 
3E-218, Mail Stop 9W-11, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW., Suite 3E-218, 
Mail Stop 9W-11, Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``FFIEC 031 and 041'' in your comment. In general, OCC will enter all 
comments received into the docket and publish them on the 
Regulations.gov Web site without change, including any business or 
personal information that you provide such as name and address 
information, email addresses, or phone numbers. 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.
    You may personally inspect and photocopy comments at the OCC, 400 
7th Street SW., Washington, DC. 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.
    Board: You may submit comments, which should refer to ``FFIEC 031 
and FFIEC 041,'' by any of the following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at: http://www.federalreserve.gov/apps/foia/proposedregs.aspx#icp.
     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

[[Page 35635]]

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 
and FFIEC 041,'' 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 031and FFIEC 
041'' 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 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.
    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 Call Report discussed in this notice, please 
contact any of the agency clearance officers whose names appear below. 
In addition, copies of the proposed revised FFIEC 031 and FFIEC 041 
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, for persons who are deaf or hard of hearing, TTY, (202) 
649-5597, 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, Office of the Chief Data Officer, 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 and 
extend for three years the Call Report, which is currently an approved 
collection of information for each agency.
    Report Title: Consolidated Reports of Condition and Income (Call 
Report).
    Form Number: Call Report: FFIEC 031 (for banks and savings 
associations with domestic and foreign offices) and FFIEC 041 (for 
banks and savings associations with domestic offices only).
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    OCC:
    OMB Number: 1557-0081.
    Estimated Number of Respondents: 1,675 national banks and federal 
savings associations.
    Estimated Time per Response: 59.64 burden hours per quarter to 
file.
    Estimated Total Annual Burden: 399,588 burden hours to file.
    Board:
    OMB Number: 7100-0036.
    Estimated Number of Respondents: 846 state member banks.
    Estimated Time per Response: 60.07 burden hours per quarter to 
file.
    Estimated Total Annual Burden: 203,277 burden hours to file.
    FDIC:
    OMB Number: 3064-0052.
    Estimated Number of Respondents: 4,237 insured state nonmember 
banks and state savings associations.
    Estimated Time per Response: 44.74 burden hours per quarter to 
file.
    Estimated Total Annual Burden: 758,254 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 20 to 775 hours per quarter, 
depending on an individual institution's circumstances.

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 banks), 
and 12 U.S.C. 1464 (savings associations) (collectively, Call Report 
filers). At present, except for selected data items, the Call Report 
information collections are not given confidential treatment.

Abstract

    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.

Current Actions

I. Overview of the Proposed Changes

A. Summary of Proposed Changes

    Call Report Schedule RC-R collects regulatory data on tier 1, tier 
2, and total capital and regulatory capital ratios (regulatory capital 
components and ratios portion) and on risk-weighted assets (risk-
weighted assets portion). On January 14, 2014, the agencies published a 
final PRA notice in the Federal Register pertaining to their 
submissions to OMB for review and approval of revised reporting 
requirements for the regulatory capital components and ratios portion 
of Call Report Schedule RC-R, consistent with the revised regulatory 
capital rules.\2\

[[Page 35636]]

The agencies are proposing at this time to revise the reporting 
requirements for the risk-weighted assets portion of Call Report 
Schedule RC-R by incorporating the standardized approach, consistent 
with the revised regulatory capital rules.\3\ Compared to the current 
schedule, the proposed risk-weighted assets portion of Schedule RC-R 
would provide a more detailed breakdown of on-balance sheet asset and 
off-balance sheet item categories, remove the ratings-based approach 
from the calculation of risk-weighted assets, reflect alternative risk-
weighting approaches not reliant on credit ratings, and include an 
expanded number of risk-weight categories, consistent with the revised 
regulatory capital rules. The revisions to the risk-weighted assets 
portion of Schedule RC-R would take effect as of the March 31, 2015, 
report date. The proposed changes to Call Report Schedule RC-R are 
discussed in more detail in section II below.
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    \2\ For report dates in 2014, the regulatory capital components 
and ratios portion of Schedule RC-R will be designated Parts I.A and 
I.B. Call Report filers that are not advanced approaches 
institutions will 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, will file Part I.B, which 
includes the revised reporting requirements 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. See 79 FR 2527 (Jan. 14, 2014) for 
the revised regulatory reporting requirements.
    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).
    \3\ 78 FR 62018 (Oct. 11, 2013) (OCC and Board) and 78 FR 55340 
(Sept. 10, 2013) (FDIC).
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    The agencies are proposing 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 would continue to 
report risk-weighted assets in the portion of Schedule RC-R that 
currently contains existing data items 34 through 62 and Memoranda 
items 1 and 2, but this portion of the schedule would be designated 
Part II.
    Call Report Schedule RC-L collects regulatory data on derivatives 
and off-balance sheet items. The agencies are proposing at this time to 
revise the reporting requirements for off-balance sheet exposures 
related to securities lent and borrowed, consistent with the revised 
regulatory capital rules. Compared to the current schedule, the 
proposed changes to Schedule RC-L would require all institutions to 
report the amount of securities borrowed. At present, institutions 
include the amount of securities borrowed in the total amount of all 
other off-balance sheet liabilities if the amount of securities 
borrowed is more than 10 percent of total bank equity capital and 
disclose the amount of securities borrowed if that amount is more than 
25 percent of total bank equity capital. In addition, the proposed 
changes to Schedule RC-L would place the line item for securities 
borrowed immediately after the line item for securities lent.

B. Timing of Implementation of the Proposed Reporting Requirements

Call Report Filers
    All Call Report filers, including all advanced approaches 
institutions that file Call Reports, would continue to report their 
risk-weighted assets by applying the general risk-based capital rules 
\4\ and using the current template of Schedule RC-R, items 34 through 
62 and Memoranda items 1 through 2, for report dates in 2014, and this 
portion of the schedule has been designated Part II. All institutions 
would begin using proposed revised Schedule RC-R, Part II, to report 
their risk-weighted assets under the standardized approach effective 
for the March 31, 2015, report date.
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    \4\ The agencies' general risk-based capital rules are at 12 CFR 
part 3, appendix A (national banks); 12 CFR part 167 (federal 
savings associations); 12 CFR part 208, appendix A (state member 
banks); 12 CFR part 225, appendix A (bank holding companies); 12 CFR 
part 325, appendix A (state nonmember banks); and 12 CFR part 390, 
subpart Z (state savings associations).
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    All Call Report filers would continue to report securities lent 
(item 6) and securities borrowed (items 9 and 9.a, as appropriate) in 
current Schedule RC-L for report dates in 2014. These institutions 
would begin to use the updated line items for securities lent and 
borrowed in Schedule RC-L effective for the March 31, 2015, report 
date.
Advanced Approaches Institutions
    Reporting risk-weighted assets: As discussed above, an advanced 
approaches institution that is a Call Report filer, regardless of 
whether it is in a parallel run period or has completed a satisfactory 
parallel run, would complete the current version of the risk-weighted 
assets portion of Schedule RC-R (which has been designated Part II of 
the schedule) by applying the general risk-based capital rules for 
report dates in 2014 and it would complete the proposed revised version 
of Schedule RC-R, Part II, by applying the standardized approach for 
report dates beginning in 2015. In addition, an advanced approaches 
institution that is a Call Report filer and is in a parallel run period 
would report its risk-weighted assets (as calculated under the general 
risk-based capital rules for report dates in 2014 and under the 
standardized approach for report dates beginning in 2015) and its risk-
based capital ratios on proposed revised FFIEC 101 \5\ Schedule A (line 
items 60 through 63), and on proposed Call Report Schedule RC-R, Part 
I.B (line item 40.a and line items 41 through 43, Column A). 
Furthermore, such an institution would apply the revised advanced 
approaches rules to report its risk-weighted assets and risk-based 
capital ratios on a confidential basis in proposed revised FFIEC 101 
Schedule A (line items 87 through 90).
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    \5\ FFIEC 101, Regulatory Capital Reporting for Institutions 
Subject to the Advanced Capital Adequacy Framework, OMB Numbers: For 
the OCC: 1557-0239; for the Board: 7100-0319; and for the FDIC: 
3064-0159. For the proposed revised FFIEC 101, see 79 FR 2527 (Jan. 
14, 2014).
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    For report dates beginning in 2014, an advanced approaches banking 
organization that is a Call Report filer and has completed a 
satisfactory parallel run would report its advanced approaches risk-
weighted assets and risk-based capital ratios on proposed revised FFIEC 
101 Schedule A (line items 60 through 63) and on proposed revised Call 
Report Schedule RC-R, Part I.B (line item 40.b and line items 41 
through 43, Column B). Part I.B would be designated Part I of Schedule 
RC-R for report dates beginning in 2015.
Initial Reporting
    For the March 31, 2015, report date, institutions may provide 
reasonable estimates for any new or revised Call Report items initially 
required to be reported as of that date for which the requested 
information is not readily available. The specific wording of the 
captions for the new or revised Call Report data items discussed in 
this proposal and the numbering of these data items should be regarded 
as preliminary. Similarly, the text of the draft instructions for 
proposed revised Schedule RC-R, Part II, and the proposed revisions to 
Schedule RC-L for securities lent and borrowed should be regarded as 
preliminary.

II. Discussion of Proposed Revised Call Report Schedule RC-R, Part II

    This section describes the proposed changes to Call Report Schedule 
RC-R

[[Page 35637]]

to implement the reporting of risk-weighted assets consistent with the 
revised regulatory capital rules. As previously discussed, effective 
for the March 31, 2015, report date, the existing risk-weighted assets 
portion of Schedule RC-R (items 34 through 62 and Memoranda items 1 and 
2, which was designated Part II as of the March 31, 2014, report date) 
would be replaced by a revised Part II that would be completed by all 
institutions that file the Call Report. Call Report filers should refer 
to the revised regulatory capital rules and the proposed reporting 
instructions for revised Schedule RC-R, Part II, for further 
information.
    Proposed revised Part II of Schedule RC-R would be divided into the 
following sections: (A) On-balance sheet asset categories; (B) 
derivatives and off-balance sheet items; (C) totals; and (D) memoranda 
items for derivatives. A brief description of each of these sections 
and the corresponding line items is provided below.

A. Schedule RC-R, Part II, Items 1-11: Balance Sheet Asset Categories 
and Securitization Exposures

    Proposed line items 1 through 8 reflect on-balance sheet asset 
categories (excluding those assets within each category that meet the 
definition of a securitization exposure), similar to the asset 
categories included in the current version of Schedule RC-R, but the 
proposed items would capture greater reporting detail. The number of 
risk-weight categories to which the individual assets in each asset 
category would be allocated would be expanded consistent with the 
revised regulatory capital rules. On-balance sheet assets and off-
balance sheet items that meet the definition of a securitization 
exposure would be reported in items 9 and10, respectively. In addition 
to the proposed instructions for revised Schedule RC-R, Part II, 
institutions also should refer to the revised regulatory capital rules 
to determine the appropriate risk-weight category allocations for each 
on-balance sheet asset category and the appropriate risk-weight 
calculations for securitization exposures.
    Subject to the separate reporting of securitization exposures from 
the related on-balance sheet asset category, total on-balance sheet 
assets are equal to the sum of: (Item 1) cash and balances due from 
depository institutions; securities, excluding securitization 
exposures, which are composed of (item 2.a) held-to-maturity (HTM) 
securities and (item 2.b) available-for-sale (AFS) securities; (item 3) 
federal funds sold and securities purchased under agreements to resell; 
loans and leases held for sale, which are composed of (item 4.a) 
residential mortgage exposures, (item 4.b) high volatility commercial 
real estate (HVCRE) exposures, (item 4.c) exposures past due 90 days or 
more or on nonaccrual, and (item 4.d) all other exposures; loans and 
leases, net of unearned income, which are composed of (item 5.a) 
residential mortgage exposures, (item 5.b) HVCRE exposures, (item 5.c) 
exposures past due 90 days or more or on nonaccrual, and (item 5.d) all 
other exposures; less (item 6) allowance for loan and lease losses; 
(item 7) trading assets, excluding securitization exposures that 
receive standardized charges; (item 8) all other assets; and on-balance 
sheet securitization exposures, which are composed of (item 9.a) HTM 
securities, (item 9.b) AFS securities, (item 9.c) trading assets that 
receive standardized charges, and (item 9.d) all other on-balance sheet 
securitization exposures. As mentioned above, off-balance-sheet 
securitization exposures would be reported in item 10.
    Line item 11 would collect total information on the institution's 
on-balance sheet asset categories and on-balance sheet securitization 
exposures, including for each risk-weight category, calculated as the 
sum of items 1 through 9.

B. Schedule RC-R, Part II, Items 12-21: Derivatives and Off-Balance 
Sheet Items

    Proposed line items 12 through 21 pertain to the reporting of 
derivatives and off-balance sheet items, excluding those that meet the 
definition of a securitization exposure (which are reported in item 10 
as discussed above). Consistent with the revised regulatory capital 
rules, new line items would be added and the number of risk-weight 
categories to which the credit equivalent amounts of derivatives and 
off-balance sheet items would be allocated would be expanded. In 
addition to the proposed instructions for revised Schedule RC-R, Part 
II, institutions also should refer to the revised regulatory capital 
rules to determine the appropriate risk-weight category allocations for 
each derivative and off-balance item sheet category.
    Derivatives and off-balance sheet items consist of: (Item 12) 
financial standby letters of credit; (item 13) performance standby 
letters of credit and transaction-related contingent items; (item 14) 
commercial and similar letters of credit with an original maturity of 
one year or less; (item 15) retained recourse on small business 
obligations sold with recourse; (item 16) repo-style transactions 
(excluding reverse repos), which includes securities borrowed, 
securities lent, and securities sold under agreements to repurchase; 
(item 17) all other off-balance sheet liabilities; unused commitments, 
which is composed of (item 18.a) the unused portion of commitments with 
an original maturity of one year or less, excluding asset-backed 
commercial paper (ABCP) conduits, (item 18.b) the unused portion of 
eligible ABCP liquidity facilities with an original maturity of one 
year or less, and (item 18.c) the unused portion of commitments and 
commercial and similar letters of credit that have an original maturity 
exceeding one year; (item 19) unconditionally cancelable commitments; 
(item 20) the credit equivalent amount of over-the-counter derivative 
contracts; and (item 21) the credit equivalent amount of centrally 
cleared derivative contracts.

C. Schedule RC-R, Part II, Items 22-30: Totals

    Proposed items 22 through 30 apply the risk-weight factors to the 
exposure amounts reported for assets, derivatives, and off-balance 
sheet items in items 11 through 21 and calculate an institution's total 
risk-weighted assets.
    Line item 24 would collect information on an institution's risk-
weighted assets by risk-weight category. For each column, this is equal 
to the product of the amount reported (item 22) for total assets, 
derivatives, and off-balance sheet items by risk-weight category, 
multiplied by (item 23) the applicable risk-weight factor.
    Line item 25 would collect an institution's measurement of risk-
weighted assets for purposes of calculating the institution's 1.25 
percent of risk-weighted assets limit on the allowance for loan and 
lease losses.
    Line item 26 would collect an institution's standardized market 
risk-weighted assets, if applicable.
    Line item 30 would collect an institution's total risk-weighted 
assets, calculated as (item 27) risk-weighted assets before deductions 
for excess allowance of loan and lease losses and allocated transfer 
risk reserve less (item 28) excess allowance for loan and lease losses, 
and less (item 29) allocated transfer risk reserve.

D. Schedule RC-R, Part II, Memorandum Items 1-3: Derivatives

    In proposed memorandum items 1 through 3, an institution would 
report the current credit exposure and notional principal amounts of 
its derivative contracts. Consistent with the revised regulatory 
capital rules, existing memorandum item 2 would be revised.

[[Page 35638]]

    Memorandum item 1 would continue to collect the institution's total 
current credit exposure amount for all interest rate, foreign exchange 
rate, gold, credit, commodity, equity, and other derivative contracts 
covered by the revised regulatory capital rules after considering 
applicable legally enforceable bilateral netting agreements.
    Memorandum items 2 and 3, respectively, would collect, by remaining 
maturity and type of contract, the notional principal amounts of the 
institution's over-the-counter and centrally cleared derivative 
contracts subject to the revised regulatory capital rules. Data on 
interest rate, foreign exchange rate and gold, credit (investment grade 
reference assets), credit (non-investment grade reference assets), 
equity, precious metals (except gold), and other derivative contracts 
would be reported separately. At present, institutions report these 
notional principal amounts and remaining maturities, but without 
distinguishing between over-the-counter and centrally cleared 
derivatives. In addition, foreign exchange rate contracts and gold 
contracts would be combined in Memorandum items 2 and 3, whereas each 
of these two types of contracts currently is reported separately in 
Memorandum item 2.

III. Discussion of Proposed Changes to Call Report Schedule RC-L

    This section describes the proposed changes to Call Report Schedule 
RC-L to implement the reporting of securities lent and borrowed 
consistent with the revised regulatory capital rules. Effective for the 
March 31, 2015, report date, the existing line item for securities lent 
(current item 6 of Schedule RC-L) would be renumbered and the existing 
reporting requirements for securities borrowed (current items 9 and 
9.a) would be revised as described below. Call Report filers should 
refer to the revised regulatory capital rules and the proposed 
reporting instructions for revised Schedule RC-L for further 
information.
    In current Schedule RC-L, securities lent and borrowed are reported 
separately, not in sequential order. Furthermore, all institutions must 
report securities lent, but securities borrowed are reported and 
disclosed only if the amount exceeds specified thresholds. Securities 
borrowed are included in item 9, ``All other off-balance sheet 
liabilities,'' if the amount of securities borrowed is more than 10 
percent of Schedule RC, item 27.a, ``Total bank equity capital.'' If 
the amount of securities borrowed is greater than 25 percent of total 
bank equity capital, then that amount is reported separately in item 
9.a, ``Securities borrowed.''
    Proposed line item 6.a would be used for reporting securities lent 
and item 6.b would be used for reporting securities borrowed. The total 
amount of securities borrowed would be reported in line item 6.b 
regardless of amount, not just when the amount is more than the 10 
percent bank equity capital threshold, as is currently the case.

IV. Scope and Frequency of Reporting

    The proposed regulatory reporting changes to the risk-weighted 
assets portion of Call Report Schedule RC-R and to the reporting of 
securities lent and borrowed in Schedule RC-L would apply to all Call 
Report filers for report dates beginning in 2015. Each reporting entity 
would continue to submit the applicable quarterly reports on the same 
due dates as are currently in effect for the reporting entity. In 
addition, the agencies expect all reporting entities to meet the 
existing reporting standards for accuracy and other requirements as 
currently mandated by their primary federal supervisor.
    See section I.B of this notice for a detailed discussion of the 
timing for the implementation of the proposed reporting changes.

V. Request for Comment

    Public comment is requested on all aspects of this joint notice. In 
particular, do institutions expect that making any specific line items 
on the proposed revised risk-weighted assets portion of Call Report 
Schedule RC-R public would cause them competitive or other harm? If so, 
identify the specific line items and describe in detail the nature of 
the harm.
    Specifically, 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 the agencies and will be summarized or included in the agencies' 
requests for OMB approval. All comments will become a matter of public 
record.

    Dated: June 16, 2014.
Stuart Feldstein,
Director, Legislative and Regulatory Activities Division, Office of the 
Comptroller of the Currency.
    Board of Governors of the Federal Reserve System, June 16, 2014.
Robert deV. Frierson,
Secretary of the Board.
    Dated at Washington, DC, this 16 day of June, 2014.

Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
[FR Doc. 2014-14549 Filed 6-20-14; 8:45 am]
BILLING CODE 4810-33-P;6210-01-P;6714-01-P