[Federal Register Volume 80, Number 21 (Monday, February 2, 2015)]
[Notices]
[Pages 5618-5623]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-02056]


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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 collections to be submitted to Office of 
Management and Budget (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 OMB control number. On June 23, 2014, the 
agencies, under the auspices of the Federal Financial Institutions 
Examination Council (FFIEC), requested public comment for 60 days on 
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 approved 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, III, and 
IV of the SUPPLEMENTARY INFORMATION section below. 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.

DATES: Comments must be submitted on or before March 4, 2015.

ADDRESSES: Interested parties are invited to submit written comments to

[[Page 5619]]

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.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include the 
reporting form numbers 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 
http://www.federalreserve.gov/apps/foia/proposedregs.aspx 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 
and FFIEC 041,'' by any of the following methods:
     Agency Web site: http://www.fdic.gov/regulations/laws/federal/. 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 and 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 7:00 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/ including any 
personal information provided. Paper copies of public comments may be 
requested from the FDIC Public Information Center by telephone at (877) 
275-3342 or (703) 562-2200.
    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 staff whose names appear below. In addition, 
copies of the 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: Kevin Korzeniewski, Attorney, (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: John Schmidt, Federal Reserve Board Clearance Officer, (202) 
728-5859, 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, and John Popeo, 
Counsel, (202) 898-6923, 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: 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

[[Page 5620]]

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). 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. Summary of the Proposed Revisions

    On June 23, 2014, the agencies requested comment on proposed 
revisions to the risk-weighted assets portion of Schedule RC-R, and to 
line items related to securities lent and borrowed in Schedule RC-L, in 
the Call Report (the proposal).\1\ The revisions would become effective 
for the March 31, 2015, report date.
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    \1\ See 79 FR 35634.
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    The agencies collectively received comments on the proposal from 
three entities: One banking organization, one consulting firm, and one 
U.S. government agency. In addition, the Board received comments from 
three entities--two banking organizations and one bankers' 
association--on proposed revisions to the reporting of risk-weighted 
assets in Schedule HC-R of the Consolidated Financial Statements for 
Holding Companies (FR Y-9C; OMB No. 7100-0128). In this instance, the 
agencies considered the comments on the proposed revisions to the FR Y-
9C because they parallel the proposed revisions to the Call Report. 
Collectively, the commenters asked for (1) clarification on the 
applicability of the proposed reporting requirements, (2) additional 
new items, (3) combining two items, (4) opening certain risk-weight 
categories for some items, and (5) clarification of or additional 
instructions for certain line items.\2\
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    \2\ In addition, one of the commenters on the proposal requested 
the collection of new information unrelated to the scope of this 
proposal.
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    One commenter noted that in several places the proposed reporting 
instructions refer the reader to the agencies' regulatory capital rules 
for additional information.\3\ The commenter requested that the 
agencies incorporate the information from the regulatory capital rules 
into the reporting instructions. The agencies believe that adding such 
text to the reporting instructions will unduly add significant length 
to the instructions, and do not believe it is necessary to incorporate 
the complete text of the agencies' regulatory capital rules into the 
reporting instructions. However, the agencies will revise the proposed 
reporting instructions to more clearly cross-reference the regulatory 
capital rules.
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    \3\ 78 FR 62018 (Oct. 11, 2013) (OCC and Board) and 78 FR 55340 
(Sept. 10, 2013) (FDIC).
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    One commenter requested the addition of a separate line item for 
total equity exposures, while another commenter requested the addition 
of a three-way breakout of equity exposures to investment funds similar 
to that found in the Regulatory Capital Reporting for Institutions 
Subject to the Advanced Capital Adequacy Framework (FFIEC 101).\4\ The 
FFIEC 101 requires institutions to report equity exposures to 
investment funds by the methodology used to risk weight these 
exposures. The agencies do not believe it is necessary to add line 
items for reporting equity exposures by risk-weighting methodology to 
the Call Report. Furthermore, the agencies will not import into the 
Call Report the equity exposure reporting template found in the FFIEC 
101 because this would add complexity and burden for smaller 
institutions that complete the Call Report. However, because of the 
approaches available for risk weighting investments in investment funds 
(including mutual funds), the agencies will add data items for 
reporting the exposure amount and risk-weighted asset amount of such 
investments to the appropriate balance sheet asset categories. The 
agencies also will include more detailed guidance related to equity 
exposure reporting in the final instructions for Schedule RC-R, Part 
II.
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    \4\ FFIEC 101--Regulatory Capital Reporting for Institutions 
Subject to the Advanced Capital Adequacy Framework: for the OCC, OMB 
No. 1557-0239; for the Board, OMB No. 7100-0319; and for the FDIC, 
OMB No. 3064-0159.
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    Comments received on specific line items in Schedule RC-R, Part II, 
and Schedule RC-L, are addressed in sections II and IV below.

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

    The agencies proposed to revise the reporting requirements for the 
risk-weighted assets portion of Call Report Schedule RC-R, Regulatory 
Capital, by incorporating the standardized approach, consistent with 
the revised regulatory capital rules. 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 reporting of 
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. As originally proposed, 
Schedule RC-R, Part II, Risk-Weighted Assets, would be divided into the 
following sections: (A) On-balance sheet asset categories and 
securitization exposures; (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 and the comments received on specific line items in Schedule 
RC-R, Part II, are 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

[[Page 5621]]

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 
and 10, respectively.
    Two commenters noted that several risk-weight categories for item 
8, ``Other assets,'' on the proposed reporting form are not available 
for data input (i.e., the categories are shaded out), but the 
commenters stated the categories may be applicable, particularly to 
address the exposures underlying separate account bank-owned life 
insurance (BOLI) assets. The agencies agree with these comments and, 
because of the risk-weighting approaches that can be applied to 
separate account BOLI assets, will provide new data items for the 
exposure amount and risk-weighted asset amount of these BOLI assets, 
which would be reported separately from the other risk weightings 
within item 8, ``Other assets.'' In addition, the agencies will allow 
data input in the 150 percent and 300 percent risk-weight categories 
for item 8, ``Other assets.''
    One commenter requested clarification of the reporting in item 8 of 
default fund contributions (DFCs) made by the reporting institution to 
qualifying central counterparties (QCCPs). The commenter noted that the 
proposed reporting instructions for item 8 state that such 
contributions should be allocated to the risk-weight categories defined 
for column B through column Q. However, the commenter observed that 
DFCs to QCCPs are subject to two alternative methodologies (Methods 1 
and 2) for calculating risk-weighted assets, one of which may result in 
risk weightings not captured in column B through column Q.
    In response to this comment, the agencies will provide new data 
items for the exposure amount and risk-weighted asset amount of DFCs to 
QCCPs, which would be reported separately from the risk weightings 
otherwise captured in item 8. The instructions would describe how to 
use these data items to report DFCs under Method 1 as well as Method 2.
    One commenter noted that items 2 through 8 could include 
securitization exposures, and when added with item 9, ``On-balance 
sheet securitization exposures,'' would double count such exposures in 
reporting item 11, ``Total assets.'' The agencies note that the 
reporting instructions for each proposed balance sheet asset category 
(items 1 through 8) explicitly state that the reporting institution is 
to exclude securitization exposures. Nevertheless, the agencies will 
clarify the proposed reporting form by adding guidance explicitly 
stating that institutions should exclude securitization exposures from 
items 2 through 8 and report them in item 9.\5\
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    \5\ The agencies will add a similar clarification to the 
proposed reporting form regarding derivatives and off-balance sheet 
items that are securitization exposures by explicitly stating that 
institutions should exclude them from items 12 through 21 and report 
them in item 10.
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    Although the proposed report form and instructions addressed the 
reporting of an institution's securitization exposures and the 
treatment of financial collateral, the agencies noted during their 
review of the proposal that it did not clearly address the risk 
weighting and reporting of assets and certain other items secured by 
financial collateral in the form of securitization exposures or mutual 
funds, nor did it fully address the two approaches for recognizing the 
effects of qualifying financial collateral. The approaches for risk 
weighting securitization exposures and investments in mutual funds also 
are applicable to such exposures when they serve as financial 
collateral. To accommodate the possible risk weight outcomes when 
exposures are secured by these types of collateral, the agencies will 
include data items in new columns R and S for reporting the exposure 
amount and risk-weighted asset amount of these collateralized exposures 
separately from the other risk weightings within appropriate balance 
sheet asset categories (and derivative and off-balance sheet item 
categories).

B. Schedule RC-R, Part II, Items 12-22: Derivatives, Off-Balance Sheet 
Items, and Other Items Subject To Risk Weighting

    Proposed line items 12 through 22 pertain to the reporting of 
derivatives, off-balance sheet items, and other items subject to risk 
weighting, excluding those that meet the definition of a securitization 
exposure (which are reported in item 10 as discussed above).
    One commenter noted that in accordance with section 37 of the 
agencies' revised regulatory capital rules, banking organizations must 
calculate the exposure amount and risk-weighted assets for repo-style 
transactions on a netting set basis. A netting set may contain 
transactions that are reported as assets, liabilities, and off-balance 
sheet items (as long as they are executed under the same master netting 
agreement), and the basis for the risk-weighted assets calculation is 
the net exposure, adjusted for volatility and foreign exchange 
haircuts. As proposed, Schedule RC-R, Part II, would have split the 
reporting of repo-style transactions between assets (reported in item 
3, ``Federal funds sold and securities purchased under agreements to 
resell,'' i.e., reverse repos) and liabilities and off-balance sheet 
items (reported in item 16, ``Repo-style transactions (excluding 
reverse repos)''). However, since risk-weighted assets for repo-style 
transactions are based on the net exposure at a netting set level 
(inclusive of volatility and foreign exchange haircuts), the proposal's 
method for allocating repo-style transaction exposures between two 
reporting items and across the risk-weight categories in a way that 
would tie back to the amounts required to be reported in column A of 
Schedule RC-R, Part II (i.e., for item 3, the balance sheet carrying 
amount, and for item 16, the notional value), does not align with the 
treatment of repo-style transactions under the revised regulatory 
capital rules. The commenter recommended that the agencies amend the 
reporting form to collect all repo-style transactions in a single item, 
and amounts attributed to risk-weighting categories for this item would 
tie to an ``exposure'' amount reported in Column A.
    The agencies agree with this comment and will revise the proposed 
item 16 of Schedule RC-R, Part II, to include all repo-style 
transactions in a retitled item 16, ``Repo-style transactions,'' which 
will now also include securities purchased under agreements to resell 
(reverse repos) in order for institutions to calculate their exposure 
based on master netting set agreements. In addition, consistent with 
the Call Report balance sheet (Schedule RC), proposed item 3 of 
Schedule RC-R, Part II, will be split into item 3.a, ``Federal funds 
sold (in domestic offices),'' and item 3.b, ``Securities purchased 
under agreements to resell.'' However, after an institution reports the 
balance sheet carrying amount of its reverse repos in column A of item 
3.b, it would report this same amount as an adjustment in column B of 
item 3.b, resulting in no allocation of the balance sheet carrying 
amount of reverse repos across the risk-weight categories in item 3. 
This reporting methodology will ensure that the sum of the balance 
sheet asset amounts reported in items 1 through 9, column A, of 
Schedule RC-R, Part II, that an institution will report in item 11 of 
Schedule RC-R, Part II, will continue to equal the ``Total assets'' 
reported in item 12 of the Call Report balance sheet (Schedule RC).
    Another commenter noted that, under the agencies' revised 
regulatory capital rules, a banking organization is required

[[Page 5622]]

to hold risk-based capital against all repo-style transactions, 
regardless of whether the transactions generate on-balance sheet 
exposures. The commenter also noted that the proposed reporting 
instructions for Schedule RC-R, Part II, state that ``Although 
securities sold under agreements to repurchase are reported on the 
balance sheet (Schedule RC) as liabilities, they are treated as off-
balance sheet items under the regulatory capital rules.'' The commenter 
then questioned the intent of the agencies' proposed reporting form 
that would require an institution to calculate a capital charge for 
these ``off-balance sheet items'' despite the fact that the security 
pledged by the institution as collateral for the repo remains on the 
balance sheet for accounting purposes and would therefore attract a 
separate on-balance sheet risk weighting. The agencies adopted this 
reporting approach for consistency with the revised regulatory capital 
rules, which recognize that institutions face counterparty credit risk 
when engaging in repo-style transactions. However, under certain 
conditions, the agencies' revised regulatory capital rules also allow 
institutions to recognize the risk mitigating effects of financial 
collateral when risk weighting their repo-style exposures. The final 
reporting form and instructions for Schedule RC-R, Part II, would 
implement this treatment of repo-style transactions, which is set forth 
in the revised regulatory capital rules.
    The final version of Schedule RC-R, Part II, will also include a 
new line item 22, ``Unsettled transactions (failed trades),'' in order 
to more clearly assess risk-based capital against delayed trades where 
the counterparty has failed to deliver an instrument or make a required 
payment in a timely manner.

C. Schedule RC-R, Part II, Items 23-31: Totals

    Proposed items 23 through 31 apply the risk-weight factors to the 
exposure amounts reported for assets, derivatives, off-balance sheet 
items, and other items subject to risk weighting in items 11 through 22 
and then calculate an institution's total risk-weighted assets. The 
agencies did not receive any additional comments on these line items 
and thus would largely retain the proposed line items without 
modification.

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.
    Memorandum item 1 would continue to collect the ``Current credit 
exposure across all derivative contracts covered by the risk-based 
capital standards.'' One commenter noted that, prior to the proposed 
revisions, the instructions for Memorandum item 1 stated that all 
written option contracts (except those that are, in substance, 
financial guarantees) are not covered by the risk-based capital 
standards. However, this statement was omitted from the proposed 
instructions for Memorandum item 1. The commenter asked if this was an 
explicit change in the reporting of written option contracts. Written 
option contracts continue to be excluded from reporting in Memorandum 
item 1, consistent with the revised regulatory capital rules. The 
agencies will clarify this exclusion in the proposed instructions for 
Memorandum item 1.
    Existing Memorandum item 2 would be revised to provide for separate 
reporting, by remaining maturity and type of contract, of the notional 
principal amounts of the institution's over-the-counter and centrally 
cleared derivative contracts subject to the revised regulatory capital 
rules.

III. Treatment of Financial Subsidiaries

    During the review of the proposed forms and instructions, the 
agencies noted that the instructions were not clear regarding the 
treatment of assets and liabilities of financial subsidiaries for 
purposes of the capital calculations. Pursuant to 12 U.S.C. 24a(c), all 
assets and liabilities of financial subsidiaries must be deconsolidated 
and deducted for purposes of determining an institution's compliance 
with the agencies' regulatory capital standards. While the statutory 
treatment was explicitly included in the prior instructions, it was 
inadvertently omitted from the proposed instructions for Schedule RC-R, 
Part II. Therefore, the agencies will include language in the 
instructions specifically addressing the treatment of financial 
subsidiaries. Generally, any assets of financial subsidiaries reported 
in Call Report Schedule RC, Balance Sheet, and therefore included in 
the balance sheet amounts reported in column A of Schedule RC-R, Part 
II, would be reported as deductions in column B of Schedule RC-R, Part 
II. Derivatives and off-balance sheet items of financial subsidiaries 
would not be included for purposes of applying credit conversion 
factors and risk weighting in the remainder of Schedule RC-R, Part II.
    In addition, the agencies will clarify the instructions for the 
calculation of total assets for leverage ratio purposes in Schedule RC-
R, Part I.B, to state that the assets of financial subsidiaries 
reported in Schedule RC, Balance Sheet, must be reported as a deduction 
in item 38 of Part I.B.

IV. Proposed Changes to Call Report Schedule RC-L

    Call Report Schedule RC-L collects regulatory data on derivatives 
and off-balance sheet items. The agencies proposed 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 reported in item 9 of Schedule RC-L if the amount of 
securities borrowed is more than 10 percent of total bank equity 
capital and they 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 in a new item 6.b immediately after the 
line item for securities lent, which would be renumbered from item 6 to 
item 6.a.
    One commenter noted that the current instructions for item 9 state 
to ``report all securities borrowed against collateral (other than 
cash)'' for such purposes as serving ``as a pledge against deposit 
liabilities or delivery against short sales,'' whereas the current 
instructions for item 6 state to report all securities owned that are 
``lent against collateral or on an uncollateralized basis.'' The 
commenter characterizes current item 9 as inclusive of only certain 
types of securities borrowings such as those collateralized by ``other 
than cash'' and those ``for purposes as a pledge against deposit 
liabilities or short sales,'' whereas current item 6 covers all types 
of securities lending regardless of the type of collateral. The 
commenter asks for clarification of the scope of these two items.
    Similar to current item 6 of Schedule RC-L, the instructions for 
item 6.b will clarify that institutions should report all types of 
securities borrowing, regardless of collateral type. The phrase ``other 
than cash'' will be deleted from the final instructions for item 6.b of 
Schedule RC-L.

[[Page 5623]]

V. 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.

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

    Dated: January 22, 2015.
Stuart Feldstein,
Director, Legislative and Regulatory Activities Division, Office of the 
Comptroller of the Currency.
    By order of the Board of Governors of the Federal Reserve 
System, January 26, 2015.
Robert deV. Frierson,
Secretary of the Board.
    Dated at Washington, DC, this 21st day of January, 2015.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015-02056 Filed 1-30-15; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P