[Federal Register Volume 84, Number 31 (Thursday, February 14, 2019)]
[Notices]
[Pages 4131-4137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02330]


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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; Comment Request

AGENCY: 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 of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may 
not conduct or sponsor, and a 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 September 28, 2018, 
the agencies, under the auspices of the Federal Financial Institutions 
Examination Council (FFIEC), requested public comment for 60 days on a 
proposal to revise and extend the Consolidated Reports of Condition and 
Income for a Bank with Domestic and Foreign Offices (FFIEC 031), the 
Consolidated Reports of Condition and Income for a Bank with Domestic 
Offices Only (FFIEC 041), and the Consolidated Reports of Condition and 
Income for a Bank with Domestic Offices Only and Total Assets Less Than 
$1 Billion (FFIEC 051), which are currently approved collections of 
information. The Consolidated Reports of Condition and Income are 
commonly referred to as Call Reports. In addition, the FFIEC requested 
public comment for 60 days on a proposal to revise and extend the 
Report of Assets and Liabilities of U.S. Branches and Agencies of 
Foreign Banks (FFIEC 002) and the Report of Assets and Liabilities of a 
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or 
Agency of a Foreign (Non-U.S.) Bank (FFIEC 002S), which are currently 
approved collections of information. The Board published this proposal 
on behalf of the agencies. Also, the agencies requested public comment 
for 60 days on proposals to revise and extend the Foreign Branch Report 
of Condition (FFIEC 030), the Abbreviated Foreign Branch Report of 
Condition (FFIEC 030S), and the Regulatory Capital Reporting for 
Institutions Subject to the Advanced Capital Adequacy Framework (FFIEC 
101), which are currently approved collections of information.
    The comment period for the September 2018 notice ended on November 
27, 2018. As described in the SUPPLEMENTARY INFORMATION section, after 
considering the comments received on the proposals, the FFIEC and 
agencies will proceed with the proposed reporting revisions to and 
extensions of the FFIEC 031, FFIEC 041, FFIEC 051, FFIEC 002, FFIEC 
002S, FFIEC 030, FFIEC 030S, and FFIEC 101, as originally proposed, 
with some modification to the FFIEC 031 and FFIEC 041. These proposed 
revisions generally address the revised accounting for credit losses 
under the Financial Accounting Standards Board's (FASB) Accounting 
Standards Update (ASU) No. 2016-13, ``Financial Instruments--Credit 
Losses (Topic 326): Measurement of Credit Losses on Financial 
Instruments'' (ASU 2016-13). This proposal also includes regulatory 
capital reporting changes related to implementing the agencies' recent 
final rule on the implementation and capital transition for the current 
expected credit losses methodology (CECL).
    In addition, this notice includes other revisions to the Call 
Reports and the FFIEC 101 resulting from two sections of the Economic 
Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), 
effective upon enactment on May 24, 2018, that affect the information 
reported in these reports and for which the agencies submitted 
emergency review requests to OMB that OMB has approved.
    The proposed revisions related to ASU 2016-13 would begin to take 
effect March 31, 2019, for reports with quarterly report dates and 
December 31, 2019, for reports with an annual report date, with later 
effective dates for certain respondents.
    In addition, the agencies are giving notice they are sending the 
collections to OMB for review.

DATES: Comments must be submitted on or before March 18, 2019.

[[Page 4132]]


ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments, which should refer to the 
``CECL and EGRRCPA Reporting Revisions,'' will be shared among the 
agencies.
    OCC: Commenters are encouraged to submit comments by email, if 
possible. 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, Attention: ``CECL and EGRPRA 
Reporting Revisions,'' 400 7th Street SW, Suite 3E-218, Washington, DC 
20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``CECL and EGRPRA Reporting Revisions,'' in your comment. In general, 
the OCC will publish your comment on www.reginfo.gov 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 include any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, U.S. Office of Management and Budget, Attn: 1557-0081, 
1557-0099, 1557-0239, 725 17th Street NW, #10235, Washington, DC 20503 
or by email to [email protected].
    You may review comments and other related materials that pertain to 
this information collection following the close of the 30-Day comment 
period for this notice by any of the following methods:
     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu, 
select ``Department of Treasury'' and then click ``submit.'' This 
information collection can be located by searching by OMB control 
numbers 1557-0081, 1557-0099, and 1557-0239. Upon finding the 
appropriate information collection, click on the related ``ICR 
Reference Number.'' On the next screen, select ``View Supporting 
Statement and Other Documents'' and then click on the link to any 
comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.
     Viewing Comments Personally: You may personally inspect 
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 or, for persons who 
are deaf or hearing impaired, TTY, (202) 649-5597. Upon arrival, 
visitors will be required to present valid government-issued photo 
identification and submit to security screening in order to inspect 
comments.
    Board: You may submit comments, which should refer to ``CECL and 
EGRRCPA Reporting Revisions,'' by any of the following methods:
     Agency Website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Email: [email protected]. Include ``CECL 
and EGRRCPA Reporting Revisions'' in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, 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 website 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 form in Room 
3515, 1801 K Street NW (between 18th and 19th Streets NW), Washington, 
DC 20006 between 9:00 a.m. and 5:00 p.m. on weekdays.
    FDIC: You may submit comments, which should refer to ``CECL and 
EGRRCPA Reporting Revisions,'' by any of the following methods:
     Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC's 
website.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include ``CECL and EGRRCPA 
Reporting Revisions'' in the subject line of the message.
     Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3007, 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 https://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 information collections discussed in this 
notice, please contact any of the agency staff whose names appear 
below. In addition, copies of the reporting forms for the reports 
within the scope of this notice can be obtained at the FFIEC's website 
(https://www.ffiec.gov/ffiec_report_forms.htm).
    OCC: Kevin Korzeniewski, Counsel, (202) 649-5490, or for persons 
who are deaf or hearing impaired, TTY, (202) 649-5597, Legislative and 
Regulatory Activities Division, Office of the Comptroller of the 
Currency, 400 7th Street SW, Washington, DC 20219.
    Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer, 
(202) 452-3884, 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: Manuel E. Cabeza, Counsel, (202) 898-3767, Legal Division, 
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, 
DC 20429.

SUPPLEMENTARY INFORMATION: 

I. Background

A. ASU 2016-13, ``Financial Instruments--Credit Losses (Topic 326): 
Measurement of Credit Losses on Financial Instruments''

    In June 2016, the FASB issued ASU 2016-13, which introduced CECL 
for estimating allowances for credit losses and added Topic 326, Credit 
Losses, to the Accounting Standards Codification (ASC). The new credit 
losses standard

[[Page 4133]]

changes several aspects of existing U.S. generally accepted accounting 
principles (U.S. GAAP) as follows:
 Introduction of a New Credit Loss Methodology
    The new accounting standard developed by the FASB has been designed 
to replace the existing incurred loss methodology in U.S. GAAP. Under 
CECL, the allowance for credit losses is an estimate of the expected 
credit losses on financial assets measured at amortized cost, which is 
measured using relevant information about past events, including 
historical credit loss experience on financial assets with similar risk 
characteristics, current conditions, and reasonable and supportable 
forecasts that affect the collectability of the remaining cash flows 
over the contractual term of the financial assets. In concept, an 
allowance will be created upon the origination or acquisition of a 
financial asset measured at amortized cost. At subsequent reporting 
dates, the allowance will be reassessed for a level that is appropriate 
as determined in accordance with CECL. The allowance for credit losses 
under CECL is a valuation account, measured as the difference between 
the financial assets' amortized cost basis and the amount expected to 
be collected on the financial assets, i.e., lifetime expected credit 
losses.
 Reduction in the Number of Credit Impairment Models
    Impairment measurement under existing U.S. GAAP has often been 
considered complex because it encompasses five credit impairment models 
for different financial assets.\1\ In contrast, CECL introduces a 
single measurement objective to be applied to all financial assets 
measured at amortized cost, including loans held-for-investment (HFI) 
and held-to-maturity (HTM) debt securities. CECL does not, however, 
specify a single method for measuring expected credit losses; rather, 
it allows any reasonable approach, as long as the estimate of expected 
credit losses achieves the objective of the FASB's new accounting 
standard. Under the existing incurred loss methodology, institutions 
use various methods, including historical loss rate methods, roll-rate 
methods, and discounted cash flow methods, to estimate credit losses. 
CECL allows the continued use of these methods; however, certain 
changes to these methods will need to be made in order to estimate 
lifetime expected credit losses.
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    \1\ Current U.S. GAAP includes five different credit impairment 
models for instruments within the scope of CECL: ASC Subtopic 310-
10, Receivables-Overall; ASC Subtopic 450-20, Contingencies-Loss 
Contingencies; ASC Subtopic 310-30, Receivables-Loans and Debt 
Securities Acquired with Deteriorated Credit Quality; ASC Subtopic 
320-10, Investments-Debt and Equity Securities--Overall; and ASC 
Subtopic 325-40, Investments-Other-Beneficial Interests in 
Securitized Financial Assets.
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 Purchased Credit-Deteriorated (PCD) Financial Assets
    CECL introduces the concept of PCD financial assets, which replaces 
purchased credit-impaired (PCI) assets under existing U.S. GAAP. The 
differences in the PCD criteria compared to the existing PCI criteria 
will result in more purchased loans HFI, HTM debt securities, and 
available-for-sale (AFS) debt securities being accounted for as PCD 
financial assets. In contrast to the existing accounting for PCI 
assets, the new standard requires the estimate of expected credit 
losses embedded in the purchase price of PCD assets to be estimated and 
separately recognized as an allowance as of the date of acquisition. 
This is accomplished by grossing up the purchase price by the amount of 
expected credit losses at acquisition, rather than being reported as a 
credit loss expense. As a result, as of the acquisition date, the 
amortized cost basis of a PCD financial asset is equal to the purchase 
price of the asset plus the allowance for credit losses, rather than 
equal to the purchase price as is currently recorded for PCI loans.
 AFS Debt Securities
    The new accounting standard also modifies the existing accounting 
practices for impairment on AFS debt securities. Under this new 
standard, institutions will recognize a credit loss on an AFS debt 
security through an allowance for credit losses, rather than a direct 
write-down as is required by current U.S. GAAP. The recognized credit 
loss is limited to the amount by which the amortized cost of the 
security exceeds fair value. A write-down of an AFS debt security's 
amortized cost basis to fair value, with any incremental impairment 
reported in earnings, would be required only if the fair value of the 
AFS debt security is less than its amortized cost basis and either (1) 
the institution intends to sell the debt security, or (2) it is more 
likely than not that the institution will be required to sell the 
security before recovery of its amortized cost basis.
    Although the measurement of credit loss allowances is changing 
under CECL, the FASB's new accounting standard does not address when a 
financial asset should be placed in nonaccrual status. Therefore, 
institutions should continue to apply the agencies' nonaccrual policies 
that are currently in place.\2\ In addition, the FASB retained the 
existing write-off guidance in U.S. GAAP, which requires an institution 
to write off a financial asset in the period the asset is deemed 
uncollectible.
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    \2\ For further information, refer to the Glossary entry for 
``Nonaccrual Status'' in the FFIEC 031 and FFIEC 041 Call Report 
instruction book, the FFIEC 051 Call Report instruction book, or the 
FFIEC 002 instruction book.
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    Institutions \3\ must apply ASU 2016-13 in their Call Report, FFIEC 
002,\4\ FFIEC 002S, FFIEC 030, FFIEC 030S, and FFIEC 101 submissions in 
accordance with the effective dates set forth in the ASU, if an 
institution is required to file such form. For institutions that are 
public business entities (PBE) and also are Securities and Exchange 
Commission (SEC) filers, as both terms are defined in U.S. GAAP, the 
new credit losses standard is effective for fiscal years beginning 
after December 15, 2019, including interim periods within those fiscal 
years. Thus, for an SEC filer that has a calendar year fiscal year, the 
standard is effective January 1, 2020, and the institution must first 
apply the new credit losses standard in its Call Report, FFIEC 002,\5\ 
FFIEC 002S, FFIEC 030, and FFIEC 101 for the quarter ended March 31, 
2020 (and in its FFIEC 030S for December 31, 2020), if the institution 
is required to file these forms.
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    \3\ Institutions include banks, savings associations, holding 
companies, U.S. branches and agencies of foreign banks, and foreign 
branches of U.S. banks and U.S. savings associations.
    \4\ As stated in the instructions for the FFIEC 002, U.S. 
branches and agencies of foreign banks may choose to, but are not 
required to, maintain an allowance for loan losses on an office 
level. Similarly, under this proposal, U.S. branches and agencies of 
foreign banks that have adopted ASU 2016-13 may choose to, but are 
not required to, maintain allowances for credit losses on loans and 
other financial assets measured at amortized cost (such as HTM debt 
securities), net investments in leases, and off-balance sheet credit 
exposures (not accounted for as insurance) on an office level.
    \5\ See footnote 4.
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    For a PBE that is not an SEC filer, the credit losses standard is 
effective for fiscal years beginning after December 15, 2020, including 
interim periods within those fiscal years. Thus, for a PBE that is not 
an SEC filer and has a calendar year fiscal year, the standard is 
effective January 1, 2021, and the institution must first apply the new 
credit losses standard in its Call Report, FFIEC 002,\6\ FFIEC 002S, 
FFIEC 030, and FFIEC 101 for the quarter ended March 31, 2021 (and in 
its FFIEC 030S for December 31, 2021), if the institution is required 
to file these forms.
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    \6\ See footnote 4.

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    For an institution that is not a PBE, the credit losses standard is 
effective for fiscal years beginning after December 15, 2021, including 
interim periods within those fiscal years.\7\ Thus, for an institution 
that is not a PBE and has a calendar year fiscal year, the standard is 
effective January 1, 2022, and the institution must first apply the new 
credit losses standard in its Call Report, FFIEC 002,\8\ FFIEC 002S, 
FFIEC 030, FFIEC 030S, and FFIEC 101 for the quarter ended March 31, 
2022 (and in its FFIEC 030S for December 31, 2022) if the institution 
is required to file these forms.
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    \7\ Subsequent to the publishing of the initial 60-day Federal 
Register notice for this proposal, the FASB amended the effective 
date to the periods indicated for entities that are not PBEs (non-
PBEs) through an ASU issued November 15, 2018, ASU No. 2018-19, 
Codification Improvements to Topic 326: Financial Instruments--
Credit Losses. The effective date for these entities reflected in 
this notice has been updated as appropriate.
    \8\ See footnote 4.
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    For regulatory reporting purposes, early application of the new 
credit losses standard is permitted for all institutions for fiscal 
years beginning after December 15, 2018, including interim periods 
within those fiscal years.
    The following table provides a summary of the effective dates for 
ASU 2016-13.

                                         Effective Dates for ASU 2016-13
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                                              U.S. GAAP effective date       Regulatory report effective date *
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PBEs That Are SEC Filers................  Fiscal years beginning after 12/ 3/31/2020.
                                           15/2019, including interim
                                           periods within those fiscal
                                           years.
Other PBEs (Non-SEC Filers).............  Fiscal years beginning after 12/ 3/31/2021.
                                           15/2020, including interim
                                           periods within those fiscal
                                           years.
Non-PBEs................................  Fiscal years beginning after 12/ 3/31/2022.\10\
                                           15/2021, including interim
                                           periods within those fiscal
                                           years.\9\
Early Application.......................  Early adoption permitted for     First 3/31 after the 1/1 effective
                                           fiscal years beginning after     date of early adoption of the ASU.
                                           12/15/2018, including interim
                                           periods within those fiscal
                                           years.
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* For institutions with calendar year fiscal year-ends and reports with quarterly report dates.

    For additional information on key elements of the new accounting 
standard and initial supervisory views with respect to measurement 
methods, use of vendors, portfolio segmentation, data needs, 
qualitative adjustments, and allowance processes, refer to the 
agencies' Joint Statement on the New Accounting Standard on Financial 
Instruments--Credit Losses issued on June 17, 2016, and Frequently 
Asked Questions on the New Accounting Standard on Financial 
Instruments--Credit Losses (CECL FAQs), which were last updated on 
September 6, 2017.\11\
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    \9\ See footnote 7.
    \10\ See footnote 7.
    \11\ The CECL FAQs and a related link to the joint statement can 
be found on the following agency websites: Board: https://www.federalreserve.gov/supervisionreg/srletters/sr1708a1.pdf; FDIC: 
https://www.fdic.gov/news/news/financial/2017/fil17041a.pdf; OCC: 
https://www.occ.gov/topics/bank-operations/accounting/cecl/cecl-faqs.html.
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B. EGRRCPA

    On May 24, 2018, EGRRCPA amended various statutes administered by 
the agencies and affected regulations issued by the agencies.\12\ Two 
of the amendments made by EGRRCPA, as described below, took effect on 
the day of EGRRCPA's enactment and impact institutions' regulatory 
reports. In response to emergency review requests, the agencies 
received approval from OMB to revise the reporting of information in 
the Call Reports on certain high volatility commercial real estate 
(HVCRE) exposures and reciprocal deposits and in the FFIEC 101 report 
on certain HVCRE exposures for the June 30, 2018, report date. As a 
result of OMB's emergency approval of revisions to the information 
collections affected by the above statutory changes, the expiration 
date of these collections has been revised to February 28, 2019. The 
agencies are now undertaking the regular PRA process for revising and 
extending these information collections for three years as described in 
this notice.
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    \12\ Public Law 115-174, 132 Stat. 1296 (2018).
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 HVCRE Exposures
    Section 214 of EGRRCPA adds a new Section 51 to the Federal Deposit 
Insurance Act (FDI Act) governing the risk-based capital requirements 
for certain acquisition, development, or construction (ADC) loans. 
EGRRCPA provides that, effective upon enactment, the agencies may only 
require a depository institution to assign a heightened risk weight to 
an HVCRE exposure if such exposure is an ``HVCRE ADC Loan,'' as defined 
in Section 214 of EGRRCPA. Accordingly, a depository institution is 
permitted to use the definition of HVCRE ADC Loan in place of the 
existing definition of HVCRE loan when reporting HVCRE exposures held 
for sale, held for investment, and held for trading on Schedule RC-R, 
Regulatory Capital, Part II, Risk-Weighted Assets, in the Call Reports, 
as well as on Schedule B and Schedule G in the FFIEC 101 for 
institutions required to file that form.
 Reciprocal Deposits
    Section 29 of the FDI Act (12 U.S.C. 1831f), as amended by Section 
202 of EGRRCPA, excepts a capped amount of reciprocal deposits from 
treatment as brokered deposits for qualifying institutions, effective 
upon enactment. The current Call Report instructions, consistent with 
the law prior to the enactment of EGRRCPA, treat all reciprocal 
deposits as brokered deposits. When reporting in the Call Report, 
institutions should apply the newly defined terms and other provisions 
of Section 202 to determine whether they and their reciprocal deposits 
are eligible for the statutory exclusion and report as brokered 
deposits in Schedule RC-E, and brokered reciprocal deposits in Schedule 
RC-O, only those reciprocal deposits that are considered brokered 
reciprocal deposits under the new law.

II. Affected Reports and Specific Revisions

A. Call Reports

    The agencies propose to extend for three years, with revision, the 
FFIEC 031, FFIEC 041, and FFIEC 051 Call Reports.
    Report Title: Consolidated Reports of Condition and Income (Call 
Report).
    Form Numbers: FFIEC 031 (for banks and savings associations with 
domestic

[[Page 4135]]

and foreign offices), FFIEC 041 (for banks and savings associations 
with domestic offices only),\13\ and FFIEC 051 (for banks and savings 
associations with domestic offices only and total assets less than $1 
billion).
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    \13\ Banks and savings associations with domestic offices only 
and total consolidated assets of $100 billion or more file the FFIEC 
031 report rather than the FFIEC 041 report.
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    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
OCC
    OMB Control No.: 1557-0081.
    Estimated Number of Respondents: 1,207 national banks and federal 
savings associations.
    Estimated Average Burden per Response: 45.76 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 220,929 burden hours to file.
Board
    OMB Control No.: 7100-0036.
    Estimated Number of Respondents: 796 state member banks.
    Estimated Average Burden per Response: 50.11 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 159,550 burden hours to file.
FDIC
    OMB Control No.: 3064-0052.
    Estimated Number of Respondents: 3,523 insured state nonmember 
banks and state savings associations.
    Estimated Average Burden per Response: 44.65 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 629,208 burden hours to file.
    The estimated average burden hours collectively reflect the 
estimates for the FFIEC 031, the FFIEC 041, and the FFIEC 051 reports. 
When the estimates are calculated by type of report across the 
agencies, the estimated average burden hours per quarter are 95.47 
(FFIEC 031), 55.71 (FFIEC 041), and 39.77 (FFIEC 051). The estimated 
burden 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 banks and savings associations under each agency's supervision 
(e.g., size distribution of such institutions, types of activities in 
which they are engaged, and existence of foreign offices).
    Type of Review: Extension and revision of currently approved 
collections.
General Description of Reports
    The Call Report information collections are mandatory: 12 U.S.C. 
161 (for national banks), 12 U.S.C. 324 (for state member banks), 12 
U.S.C. 1817 (for insured state nonmember commercial and savings banks), 
and 12 U.S.C. 1464 (for federal and state savings associations). At 
present, except for selected data items and text, these information 
collections are not given confidential treatment.
Abstract
    Banks and savings associations 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 serve a regulatory or public 
policy purpose by assisting the agencies in fulfilling their shared 
missions of ensuring the safety and soundness of financial institutions 
and the financial system and protecting consumer financial rights, as 
well as agency-specific missions affecting national and state-chartered 
institutions, such as conducting monetary policy, ensuring financial 
stability, and administering federal deposit insurance. Call Reports 
are the source of the most current statistical data available for 
identifying areas of focus for on-site and off-site examinations. Among 
other purposes, the agencies use Call Report data in evaluating 
institutions' corporate applications, including, in particular, 
interstate merger and acquisition applications for which the agencies 
are required by law to determine whether the resulting institution 
would control more than 10 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.

B. FFIEC 002 and 002S

    The Board proposes to extend for three years, with revision, on 
behalf of the agencies the FFIEC 002 and FFIEC 002S reports.
    Report Titles: Report of Assets and Liabilities of U.S. Branches 
and Agencies of Foreign Banks; Report of Assets and Liabilities of a 
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or 
Agency of a Foreign (Non-U.S.) Bank.
    Form Numbers: FFIEC 002; FFIEC 002S.
    OMB control number: 7100-0032.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Respondents: All state-chartered or federally-licensed U.S. 
branches and agencies of foreign banking organizations, and all non-
U.S. branches managed or controlled by a U.S. branch or agency of a 
foreign banking organization.
    Estimated Number of Respondents: FFIEC 002--209; FFIEC 002S--38.
    Estimated Average Burden per Response: FFIEC 002--23.87 hours; 
FFIEC 002S--6.0 hours.
    Estimated Total Annual Burden: FFEIC 002--19,955 hours; FFIEC 
002S--912 hours.
    Type of Review: Extension and revision of currently approved 
collections.
General Description of Reports
    These information collections are mandatory (12 U.S.C. 3105(c)(2), 
1817(a)(1) and (3), and 3102(b)). Except for select sensitive items, 
the FFIEC 002 is not given confidential treatment; the FFIEC 002S is 
given confidential treatment (5 U.S.C. 552(b)(4) and (8)).
Abstract
    On a quarterly basis, all U.S. branches and agencies of foreign 
banks are required to file the FFIEC 002, which is a detailed report of 
condition with a variety of supporting schedules. This information is 
used to fulfill the supervisory and regulatory requirements of the 
International Banking Act of 1978. The data are also used to augment 
the bank credit, loan, and deposit information needed for monetary 
policy and other public policy purposes. The FFIEC 002S is a supplement 
to the FFIEC 002 that collects information on assets and liabilities of 
any non-U.S. branch that is managed or controlled by a U.S. branch or 
agency of the foreign bank. A non-U.S. branch is managed or controlled 
by a U.S. branch or agency if a majority of the responsibility for 
business decisions, including but not limited to decisions with regard 
to lending or asset management or funding or liability management, or 
the responsibility for recordkeeping with respect to assets or 
liabilities for that foreign branch, resides at the U.S. branch or 
agency. A separate FFIEC 002S must be completed for each managed or 
controlled non-U.S. branch. The FFIEC 002S must be filed quarterly 
along with the U.S. branch or agency's FFIEC 002. The data from both 
reports are used for (1) monitoring deposit and credit transactions of 
U.S. residents; (2) monitoring the impact of policy changes; (3) 
analyzing structural issues concerning foreign bank activity in U.S. 
markets; (4) understanding flows of banking funds and indebtedness of

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developing countries in connection with data collected by the 
International Monetary Fund and the Bank for International Settlements 
that are used in economic analysis; and (5) assisting in the 
supervision of U.S. offices of foreign banks. The Federal Reserve 
System collects and processes these reports on behalf of all three 
agencies.

C. FFIEC 030 and 030S

    The agencies propose to extend for three years, with revision, the 
FFIEC 030 and FFIEC 030S reports.
    Report Title: Foreign Branch Report of Condition.
    Form Numbers: FFIEC 030 and FFIEC 030S.
    Frequency of Response: Annually, and quarterly for significant 
branches.
    Affected Public: Business or other for profit.
OCC
    OMB Number: 1557-0099.
    Estimated Number of Respondents: 199 annual branch respondents 
(FFIEC 030); 57 quarterly branch respondents (FFIEC 030); 30 annual 
branch respondents (FFIEC 030S).
    Estimated Average Time per Response: 3.4 burden hours (FFIEC 030); 
0.5 burden hours (FFIEC 030S).
    Estimated Total Annual Burden: 1,467 burden hours.
Board
    OMB Number: 7100-0071.
    Estimated Number of Respondents: 14 annual branch respondents 
(FFIEC 030); 24 quarterly branch respondents (FFIEC 030); 11 annual 
branch respondents (FFIEC 030S).
    Estimated Average Time per Response: 3.4 burden hours (FFIEC 030); 
0.5 burden hours (FFIEC 030S).
    Estimated Total Annual Burden: 380 burden hours.
FDIC
    OMB Number: 3064-0011.
    Estimated Number of Respondents: 8 annual branch respondents (FFIEC 
030); 1 quarterly branch respondent (FFIEC 030); 8 annual branch 
respondents (FFIEC 030S).
    Estimated Average Time per Response: 3.4 burden hours (FFIEC 030); 
0.5 burden hours (FFIEC 030S).
    Estimated Total Annual Burden: 45 burden hours.
    Type of Review: Extension and revision of currently approved 
collections.
General Description of Reports
    This information collection is mandatory: 12 U.S.C. 602 (Board); 12 
U.S.C. 161 and 602 (OCC); and 12 U.S.C. 1828 (FDIC). This information 
collection is given confidential treatment under 5 U.S.C. 552(b)(4) and 
(8).
Abstract
    The FFIEC 030 collects asset and liability information for foreign 
branches of insured U.S. banks and insured U.S. savings associations 
(U.S. depository institutions) and is required for regulatory and 
supervisory purposes. The information is used to analyze the foreign 
operations of U.S. institutions. All foreign branches of U.S. 
institutions regardless of charter type file this report as provided in 
the instructions to the FFIEC 030 and FFIEC 030S.
    A U.S. depository institution generally must file a separate report 
for each foreign branch, but in some cases may consolidate filing for 
multiple foreign branches in the same country, as described below. A 
branch with either total assets of at least $2 billion or commitments 
to purchase foreign currencies and U.S. dollar exchange of at least $5 
billion as of the end of a calendar quarter is considered a 
``significant branch'' and an FFIEC 030 report is required to be filed 
quarterly. A U.S. depository institution with a foreign branch having 
total assets in excess of $250 million that does not meet either of the 
criteria to file quarterly must file the entire FFIEC 030 report for 
this foreign branch on an annual basis as of December 31.
    A U.S. depository institution with a foreign branch having total 
assets of $50 million or more, but less than or equal to $250 million 
that does not meet the criteria to file the FFIEC 030 report must file 
the FFIEC 030S report for this foreign branch on an annual basis as of 
December 31. A U.S. depository institution with a foreign branch having 
total assets of less than $50 million is exempt from filing the FFIEC 
030 and 030S reports.

D. FFIEC 101

    The agencies propose to extend for three years, with revision, the 
FFIEC 101 report.
    Report Title: Risk-Based 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 Control No.: 1557-0239.
    Estimated Number of Respondents: 20 national banks and federal 
savings associations.
    Estimated Time per Response: 674 burden hours per quarter to file.
    Estimated Total Annual Burden: 53,920 burden hours to file.
Board
    OMB Control No.: 7100-0319.
    Estimated Number of Respondents: 6 state member banks; 16 bank 
holding companies and savings and loan holding companies; and 6 
intermediate holding companies.
    Estimated Time per Response: 674 burden hours per quarter for state 
member banks to file, 677 burden hours per quarter for bank holding 
companies and savings and loan holding companies to file; and 3 burden 
hours per quarter for intermediate holding companies to file.
    Estimated Total Annual Burden: 16,176 burden hours for state member 
banks to file; 43,328 burden hours for bank holding companies and 
savings and loan holding companies to file; and 72 burden hours for 
intermediate holding companies to file.
FDIC
    OMB Control No.: 3064-0159.
    Estimated Number of Respondents: 2 insured state nonmember banks 
and state savings associations.
    Estimated Time per Response: 674 burden hours per quarter to file.
    Estimated Total Annual Burden: 5,392 burden hours to file.
    Type of Review: Extension and revision of currently approved 
collections.
General Description of Reports
    Each advanced approaches institution \14\ is required to report 
quarterly regulatory capital data on the FFIEC 101. The FFIEC 101 
information collection is mandatory for advanced approaches 
institutions: 12 U.S.C. 161 (national banks), 12 U.S.C. 324 (state 
member banks), 12 U.S.C. 1844(c) (bank holding companies), 12 U.S.C. 
1467a(b) (savings and loan holding companies), 12 U.S.C. 1817 (insured 
state nonmember commercial and savings banks), 12 U.S.C. 1464 (savings 
associations), and 12 U.S.C. 1844(c), 3106, and 3108 (intermediate 
holding companies). Certain data items in this information collection 
are given confidential treatment under 5 U.S.C. 552(b)(4) and (8).
---------------------------------------------------------------------------

    \14\ See 12 CFR 3.100(b) (OCC); 12 CFR 217.100(b) (Board); 12 
CFR 324.100(b) (FDIC).
---------------------------------------------------------------------------

Abstract
    The agencies use data reported in the FFIEC 101 to assess and 
monitor the levels and components of each reporting

[[Page 4137]]

entity's capital requirements and the adequacy of the entity's capital 
under the Advanced Capital Adequacy Framework; \15\ to evaluate the 
impact of the Advanced Capital Adequacy Framework on individual 
reporting entities and on an industry-wide basis and its competitive 
implications; and to supplement on-site examination processes. The 
reporting schedules also assist advanced approaches institutions in 
understanding expectations relating to the system development necessary 
for implementation and validation of the Advanced Capital Adequacy 
Framework. Submitted data that are released publicly will also provide 
other interested parties with information about advanced approaches 
institutions' regulatory capital.
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    \15\ 12 CFR part 3, subpart E (OCC); 12 CFR part 217, subpart E 
(Board); 12 CFR part 324, subpart E (FDIC).
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Current Actions

I. Introduction

    In response to the new credit losses standard, key elements of 
which were outlined above in Section A of ``Supplementary Information, 
I. Background,'' the agencies reviewed the existing FFIEC reports to 
determine which reports may be affected by ASU 2016-13. As a result, on 
September 28, 2018, the agencies requested comment for 60 days on a 
proposal to revise and extend the following FFIEC reports: (1) Call 
Reports (FFIEC 031, FFIEC 041, and FFIEC 051), (2) FFIEC 002 and FFIEC 
002S, (3) FFIEC 030 and FFIEC 030S, and (4) FFIEC 101.\16\
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    \16\ See 83 FR 49160 for a detailed description of the proposed 
revisions resulting from both ASU 2016-13 and EGRRCPA.
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    The agencies also reviewed the existing FFIEC reports to determine 
which reports may be affected by EGRRCPA. As a result, additional 
revisions were proposed for the Call Reports (FFIEC 031, FFIEC 041, and 
FFIEC 051) and the FFIEC 101.
    The comment period for the September 2018 notice ended on November 
27, 2018. The agencies received comments on the proposals covered in 
the notice from two entities, a bankers' association and a bank. The 
commenters recommended clarifications to the language used in the 
notice and associated reporting instructions, as well as clarifying 
edits to the proposed revised reporting forms.
    The agencies also reevaluated the proposed portfolio categories for 
which disaggregated allowance information would begin to be reported by 
institutions after adoption of ASU 2016-13 for held-to-maturity (HTM) 
debt securities on Schedule RI-C, Part II, on the FFIEC 031 and FFIEC 
041. The agencies determined that separate reporting of allowances on 
HTM mortgage-backed securities issued or guaranteed by U.S. government 
agencies or sponsored agencies and other HTM mortgage-backed 
securities, which had been proposed in the September 2018 notice, is 
not needed because, at present, the former category of mortgage-backed 
securities would likely have zero expected credit losses. As a result, 
the agencies propose to combine these portfolio categories and collect 
only one data item, rather than two data items, for the total 
allowances on an institution's HTM mortgage-backed securities.
    In addition, in December 2018, the agencies approved a final rule 
amending their capital rule to address CECL.\17\ The final rule 
included revised terminology for the allowance balance eligible for 
inclusion in regulatory capital.\18\ The agencies plan to make a 
conforming terminology revision for the reporting of regulatory capital 
on Schedule RC-R.
---------------------------------------------------------------------------

    \17\ The final rule has been scheduled for publication in the 
Federal Register on February 14, 2019.
    \18\ The agencies' final rule uses the term ``adjusted 
allowances for credit losses'' for regulatory capital purposes to 
distinguish such allowances from allowances for credit losses for 
accounting purposes.
---------------------------------------------------------------------------

    After considering these comments, the agencies will proceed with 
the revisions proposed in the September 2018 notice to the FFIEC 031, 
FFIEC 041, FFIEC 051, FFIEC 002, FFIEC 002S, FFIEC 030, FFIEC 030S, and 
FFIEC 101, as originally proposed, with some modification to the FFIEC 
031 and FFIEC 041, as noted above. The agencies will incorporate 
appropriate clarifying edits suggested by commenters in the updated 
instruction books and report forms. The agencies are now submitting 
requests to OMB for review and approval of the extension, with 
revisions, of the following FFIEC reports: (1) Call Reports (FFIEC 031, 
FFIEC 041, and FFIEC 051), (2) FFIEC 030 and FFIEC 030S, and (3) FFIEC 
101. The Board is now submitting the FFIEC 002 and the FFIEC 002S to 
OMB for review and approval of the extension, with revisions, on behalf 
of the agencies.

IV. Timing

    Subject to OMB approval, the proposed revisions related to ASU 
2016-13 would begin to take effect March 31, 2019, for reports with 
quarterly report dates, and December 31, 2019, for reports with an 
annual report date, with later effective dates for certain respondents. 
The specific wording of the captions for the new or revised Call Report 
data items discussed in the September 2018 notice and the numbering of 
these data items, as identified in that notice, are subject to change.
    This notice also includes other revisions to the Call Reports and 
the FFIEC 101 resulting from two sections of EGRRCPA, effective upon 
enactment on May 24, 2018, that affect the information reported in 
these reports and for which the agencies submitted emergency review 
requests to OMB that OMB has approved.

V. Request for Comment

    Public comment is requested on all aspects of this joint notice. 
Comment is specifically invited on:
    (a) Whether the proposed revisions to the collections of 
information that are the subject of this notice are necessary for the 
proper performance of the agencies' functions, including whether the 
information has practical utility;
    (b) The accuracy of the agencies' estimates of the burden of the 
information collections as they are proposed to be revised, including 
the validity of the methodology and assumptions used;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    Comments submitted in response to this joint notice will be shared 
among the agencies. All comments will become a matter of public record.

    Dated: February 5, 2019.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.

    Board of Governors of the Federal Reserve System, February 1, 
2019.
Ann Misback,
Secretary of the Board.

    Dated at Washington, DC, on February 1, 2019.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2019-02330 Filed 2-13-19; 8:45 am]
 BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P