[Federal Register Volume 84, Number 120 (Friday, June 21, 2019)]
[Rules and Regulations]
[Pages 29039-29053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12985]



[[Page 29039]]

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 52

[Docket ID OCC-2018-0032]
RIN 1557-AE39

FEDERAL RESERVE SYSTEM

12 CFR Part 208

[Docket ID R-1618]
RIN 7100-AF12

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 304

RIN 3064-AE82


Reduced Reporting for Covered Depository Institutions

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: Final rule.

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SUMMARY: The OCC, the Board, and the FDIC (collectively, the agencies) 
are issuing a final rule to implement section 205 of the Economic 
Growth, Regulatory Relief, and Consumer Protection Act by expanding the 
eligibility to file the agencies' most streamlined report of condition, 
the FFIEC 051 Call Report, to include certain insured depository 
institutions with less than $5 billion in total consolidated assets 
that meet other criteria, and establishing reduced reporting on the 
FFIEC 051 Call Report for the first and third reports of condition for 
a year. The OCC and Board also are finalizing similar reduced reporting 
for certain uninsured institutions that they supervise with less than 
$5 billion in total consolidated assets that otherwise meet the same 
criteria. This document also includes a Paperwork Reduction Act notice 
to further reduce the amount of data required to be reported on the 
FFIEC 051 Call Report for the first and third calendar quarters, and 
other related changes. The agencies are committed to exploring further 
burden reduction and are actively evaluating further revisions to the 
FFIEC 051 Call Report, consistent with guiding principles developed by 
the FFIEC. The agencies also are considering ways to simplify the Call 
Report forms and instructions.

DATES: This rule is effective July 22, 2019.

FOR FURTHER INFORMATION CONTACT:


    OCC: Cady Codding, Senior Policy Accountant, Office of the Chief 
Accountant, (202) 649-5764; Kevin Korzeniewski, Counsel, Chief 
Counsel's Office, (202) 649-5490; or for persons who are deaf or 
hearing impaired, TTY, (202) 649-5597.
    Board: Douglas Carpenter, Senior Supervisory Financial Analyst, 
Division of Supervision and Regulation, (202) 452-2205; Claudia Von 
Pervieux, Senior Counsel, (202) 452-2552, or Laura Bain, Senior 
Attorney, (202) 736-5546, Legal Division, Board of Governors of the 
Federal Reserve System, 20th and C Streets NW, Washington, DC 20551.
    FDIC: Robert Storch, Chief Accountant, Division of Risk Management 
Supervision, (202) 898-8906, [email protected]; or Andrew Overton, 
Examination Specialist, Division of Risk Management Supervision, (202) 
898-8922, [email protected]; or Nefretete Smith, Counsel, Legal 
Division, (202) 898-6851, [email protected]; or Kathryn Marks, Counsel, 
Legal Division, (202) 898-3896, [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background and Overview of the Proposed Rule
II. Comments Received
III. Summary of the Final Rule
IV. Section-by-Section Analysis of the Final Rule
    A. Covered Depository Institution
    B. Reduced Reporting
    C. Reservation of Authority
V. Related Agency-Specific Revisions
VI. Regulatory Analyses
    A. Paperwork Reduction Act
    B. Regulatory Flexibility Act
    C. Plain Language
    D. Riegle Community Development and Regulatory Improvement Act 
of 1994
    E. OCC Unfunded Mandates Reform Act of 1995

I. Background and Overview of the Proposed Rule

    On November 19, 2018, the agencies published a notice of proposed 
rulemaking (proposal or proposed rule) and associated Paperwork 
Reduction Act (PRA) notice that would provide reduced reporting on the 
Consolidated Reports of Condition and Income (Call Reports) \1\ for 
eligible smaller depository institutions for the first and third 
calendar quarters, to implement section 205 of the Economic Growth, 
Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA).\2\ 
Section 205 of EGRRCPA (section 205) requires the agencies to issue 
regulations that allow for a reduced reporting requirement for a 
covered depository institution when the institution makes the first and 
third report of condition for a calendar year. Section 205 defines 
``covered depository institution'' as an insured depository institution 
``that-- (i) has less than $5,000,000,000 in total consolidated assets; 
and (ii) satisfies such other criteria as the [agencies] determine 
appropriate.'' \3\
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    \1\ The ``Call Report'' is the report of condition and income 
for most insured depository institutions. There currently are three 
versions of the Call Reports: 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).
    \2\ 83 FR 58432. The EGRRCPA was enacted on May 24, 2018. Public 
Law 115-174, 132 Stat. 1296 (2018).
    \3\ 12 U.S.C. 1817(a)(12)(B).
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    Under the proposal, the agencies would have made reduced reporting 
available to small, non-complex institutions, with domestic offices 
only, that meet the definition of ``covered depository institution.'' 
The proposed rule generally would have defined ``covered depository 
institution'' to mean an institution that has less than $5 billion in 
total consolidated assets, has no foreign offices, is not required to 
or has not elected to use subpart E (Internal Ratings-Based and 
Advanced Measurement Approaches) of the agencies' regulatory capital 
rules to calculate its risk-based capital requirements (i.e., is not an 
advanced approaches institution), and is not a large or highly complex 
institution for purposes of the FDIC's deposit insurance assessment 
regulations. The proposed rule would have provided reduced reporting by 
offering covered depository institutions the option to file a more 
streamlined FFIEC 051 Call Report, which is already the most 
streamlined version of the Call Report, with fewer data items required 
for the first and third calendar quarters compared to the current FFIEC 
031, FFIEC 041, or FFIEC 051 Call Reports.
    The proposed rule also would have included a reservation of 
authority, consistent with the current General Instructions to the 
FFIEC 051 Call Report, which would permit an agency, in consultation 
with the applicable state chartering authority, for supervisory 
purposes and on an institution-specific basis, to require an 
institution to file a different version of the Call Report in any 
calendar quarter(s) in which it otherwise would be eligible to file the 
FFIEC 051 Call Report, based on the agency's determination that more

[[Page 29040]]

information is needed for supervisory purposes.

II. Comments Received

    The comment period on the proposal closed on January 18, 2019. The 
agencies collectively received 1,018 comments, including 21 unique 
comments and 997 nearly identical comments using one of two templates. 
Commenters included individuals, banks and bank personnel, industry 
trade associations, industry analysts, and members of Congress.
    Commenters generally expressed the view that the reductions 
proposed by the agencies did not go far enough in providing reduced 
reporting in the first and third calendar quarters to eligible 
institutions. Many commenters questioned the agencies' selection of the 
FFIEC 051 Call Report to provide reporting burden reduction and 
criticized the sufficiency of the proposed burden-reducing revisions to 
the FFIEC 051 Call Report. Other commenters expressed concerns that the 
proposal would reduce the amount of publicly-available information on 
eligible institutions and increase burden on analysts and other members 
of the public who would have to obtain information directly from banks. 
These comments and the agencies' responses are discussed in the summary 
and section-by-section analysis of the final rule that follows.
    In addition, a few commenters suggested technical revisions to the 
FFIEC 051 Call Report schedules. Comments related to the associated 
Call Report collection, including the additional revisions proposed to 
the existing FFIEC 051 Call Report to further streamline it for reduced 
reporting, are discussed in the PRA section of the SUPPLEMENTARY 
INFORMATION.

III. Summary of the Final Rule

    After carefully considering the comments received, the agencies are 
adopting the final rule as proposed.
    The final rule implements section 205 by prescribing the criteria 
that the agencies have determined to be appropriate for insured 
depository institutions to qualify as covered depository institutions, 
offering the expanded group of covered depository institutions the 
option to file the FFIEC 051 Call Report each calendar quarter, and 
establishing the reduced reporting in the FFIEC 051 Call Report 
permissible for such institutions for the first and third reports of 
condition for a year. The OCC's and Board's final rules also permit 
certain uninsured institutions under their supervision that otherwise 
meet the same criteria to qualify as covered depository institutions. 
The agencies' final rule includes a reservation of authority that 
allows the appropriate Federal banking agency of an institution, in 
connection with the state chartering authority, if applicable, to 
prohibit an otherwise eligible institution from using the FFIEC 051 
Call Report.
    Through the related PRA notice, the agencies are further reducing 
the items required to be reported by all covered depository 
institutions eligible to file the FFIEC 051 Call Report, as defined in 
the final rule, for the first and third reports of condition for a year 
beyond the existing level of reduced reporting in these two quarters.
    As discussed further in Section IV.B. of the SUPPLEMENTARY 
INFORMATION section, the agencies anticipate further reductions to the 
Call Report. In particular, the agencies recently proposed additional 
reductions to the FFIEC 051 Call Report in connection with a proposal 
to simplify regulatory capital requirements for certain community 
banking organizations. The agencies are committed to exploring further 
burden reduction and are actively evaluating further revisions to the 
FFIEC 051 Call Report, consistent with guiding principles developed by 
the FFIEC.\4\ The agencies also are considering ways to simplify the 
Call Report forms and instructions. The agencies would take into 
account whether revisions can be made to the FFIEC 051 Call Report 
without violating compliance with existing laws and regulations, 
jeopardizing safety and soundness supervision and monitoring, or 
impairing the Board's ability to conduct monetary policy or the FDIC's 
ability to calculate deposit insurance assessments.
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    \4\ See 83 FR 58434 ((1) Data items serve a long-term regulatory 
or public policy purpose by assisting the FFIEC members in 
fulfilling their missions; (2) data items to be collected maximize 
practical utility and minimize, to the extent practicable and 
appropriate, burden on financial institutions; and (3) equivalent 
data items are not readily available through other means).
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IV. Section-by-Section Analysis of the Final Rule

A. Covered Depository Institution

    The proposal would have defined ``covered depository institution'' 
as an institution that meets all the following criteria: Has less than 
$5 billion in total consolidated assets as reported in its report of 
condition for the second calendar quarter of the preceding calendar 
year; has no foreign offices; is not required to or has not elected to 
use Subpart E of the agencies' regulatory capital rules to calculate 
its risk-based capital requirements (i.e., is not an advanced 
approaches institution); and is not a large or highly complex 
institution for purposes of the FDIC's deposit insurance assessment 
regulations. The OCC's definition also would have excluded institutions 
that file the FFIEC 002 report of condition. The FDIC's definition also 
would have excluded state-licensed insured branches of foreign banks. 
The agencies note that adopting these criteria under the final rule 
would not exclude any institutions that currently file the FFIEC 051 
Call Report. The agencies did not receive comment on these proposed 
criteria.
    The agencies proposed to offer reduced reporting to an ``insured 
depository institution'' as such term is defined in section 3 of the 
Federal Deposit Insurance Act (FDI Act), 12 U.S.C. 1813, and as 
required by section 205. The OCC and Board also proposed extending 
eligibility to qualify as a covered depository institution to uninsured 
institutions that they supervise that otherwise meet the same 
criteria.\5\ Parity in reporting by insured and uninsured national 
banks and state member banks is appropriate in light of the 
similarities between the information used to review the activities of 
such insured and uninsured institutions. The agencies received one 
comment that opposed allowing uninsured institutions to qualify as 
covered depository institutions. The commenter expressed concern that 
uninsured institutions pose a greater risk to depositors and U.S. 
taxpayers than insured institutions. The agencies note that uninsured 
institutions cannot accept deposits from retail customers and thus the 
agencies do not believe these institutions pose a greater risk to 
depositors or taxpayers than insured institutions. In addition, certain 
OCC and Board supervised uninsured institutions with total assets of 
less than $1 billion already file the FFIEC 051 Call Report. 
Accordingly, the OCC and Board are finalizing the extension of 
eligibility to certain uninsured depository institutions as proposed.
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    \5\ The FDIC supervises only insured state nonmember banks, 
insured state savings associations, and insured state-licensed 
branches. Currently, no uninsured Board-regulated institution is 
eligible to file the FFIEC 051 Call Report, but under the final rule 
one uninsured Board-regulated institution would meet the criteria 
for eligibility to file the FFIEC 051 Call Report. The OCC 
supervises 49 uninsured institutions that currently are eligible to 
file the FFIEC 051 Call Report, which would increase to 50 under the 
final rule.
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Asset Threshold
    As mandated by section 205, the proposal would have defined a 
covered

[[Page 29041]]

depository institution as one with less than $5 billion in total 
consolidated assets. The proposal would have defined ``total 
consolidated assets'' as total assets as reported in an institution's 
report of condition. Under the proposal, an institution would have 
determined whether it meets the asset-size criterion and is eligible to 
file the FFIEC 051 Call Report based on the total consolidated assets 
reported in its report of condition (Schedule RC, Balance Sheet, Item 
12) for the second calendar quarter of the previous calendar year. This 
approach is consistent with the current FFIEC 051 Call Report 
instructions for determining eligibility to file the FFIEC 051 Call 
Report based on asset size.\6\
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    \6\ See FFIEC 051 instructions, https://www.ffiec.gov/pdf/FFIEC_forms/FFIEC051_201903_i.pdf.
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    The agencies continue to believe that establishing the asset 
threshold in this manner should allow an institution sufficient time to 
address any accounting or reporting systems changes, or other 
preparation process changes, that may be needed if the institution 
wants to take advantage of, or becomes no longer eligible for, filing 
the FFIEC 051 Call Report in the following calendar year. The agencies 
did not receive comment on this aspect of the proposal and are 
finalizing as proposed.
Other Eligibility Criteria
    Consistent with section 205, the proposal would have prescribed 
other eligibility criteria that an institution with total assets of 
less than $5 billion must meet in order to qualify as a covered 
depository institution. These other proposed criteria are based on an 
institution's international activities, its treatment under the 
agencies' regulatory capital rules, and its treatment under the FDIC's 
deposit insurance assessment regulations. Unlike the asset-size 
criterion, which is determined as of the report of condition filed for 
the second calendar quarter (as of June 30) of the prior calendar year, 
the proposal would have required an institution to determine in each 
calendar quarter whether it meets all of these non-asset-size criteria. 
If an institution ceases to meet any of these other criteria during a 
calendar quarter, then beginning that same quarter the institution 
would have become ineligible to file the FFIEC 051 Call Report. In 
contrast to failing the asset-size criterion, failing to meet the non-
asset-size criteria often reflects a significant change in the 
operations of an institution as a result of deliberate planning, such 
as opening a foreign branch or becoming subject to a different approach 
under the agencies' regulatory capital rules. Therefore, the proposal 
did not include a grace period for non-asset-size criteria. The 
agencies did not receive comment on the proposed non-asset-size 
criteria and are finalizing as proposed.
    International Activities. The proposal would have excluded from the 
definition of ``covered depository institution'' an institution that 
has foreign offices or that is an insured branch of a foreign bank. 
Under the proposal, foreign offices would have been defined as: 
Branches or consolidated subsidiaries in foreign countries \7\ unless 
located on a U.S. military facility; international banking facilities 
as defined under 12 CFR 204.8; majority-owned Edge Act and Agreement 
\8\ subsidiaries; and branches or consolidated subsidiaries in U.S. 
territories if the bank is chartered or headquartered in a U.S. state 
or the District of Columbia. Under the proposal, insured branches of 
foreign banks would have been those branches defined in section 3(s) of 
the FDI Act, 12 U.S.C. 1813(s), which file the FFIEC 002 version of the 
report of condition. The agencies continue to believe it is appropriate 
to exclude these institutions from reduced reporting because the nature 
of these international activities requires more comprehensive and 
detailed financial information to effectively supervise and monitor 
them than would be available on the FFIEC 051 Call Report.\9\ The 
agencies did not receive comment on this proposed criterion and are 
finalizing as proposed.
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    \7\ The final rule defines ``foreign country'' to refer to one 
or more foreign nations, and includes the overseas territories, 
dependencies, and insular possessions of those nations and of the 
United States. This definition also is used in the Board's 
Regulation K, 12 CFR part 211.
    \8\ 12 CFR 211.1(c)(2) and (3).
    \9\ Depository institutions with foreign offices are currently 
required to file the FFIEC 031 Call Report and thus are not 
currently eligible to file the FFIEC 051 Call Report. U.S. branches 
of foreign banks (both federally and State-licensed) are required to 
file the FFIEC 002 version of the report of condition.
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    Advanced Approaches Institutions. The proposal would have excluded 
from the definition of ``covered depository institution'' an 
institution that is required to, or has elected to, use Subpart E of 
the agencies' regulatory capital rules to calculate its risk-based 
capital requirements (i.e., is an advanced approaches institution). In 
general, an advanced approaches institution is an institution that has 
consolidated total assets equal to $250 billion or more, has 
consolidated total on-balance sheet foreign exposure equal to $10 
billion or more, or is a subsidiary of a depository institution or 
holding company that uses the advanced approaches to calculate its 
total-risk weighted assets.\10\ Advanced approaches institutions 
currently are precluded from filing the FFIEC 051 Call Report. Advanced 
approaches institutions generally must calculate their regulatory 
capital requirements under the advanced approaches, which relies in 
part on internal models and complex formulas, and are subject to 
additional requirements such as the supplementary leverage ratio.\11\ 
While advanced approaches holding companies typically have total assets 
of more than $250 billion, their depository institution subsidiaries, 
some of which may have total assets of less than $5 billion, also 
generally are subject to the advanced approaches. Some of these 
subsidiaries may engage in specialized or highly complex activities 
that require more comprehensive and detailed financial information to 
ensure effective supervision and monitoring, and thus are excluded from 
being eligible to file the FFIEC 051 Call Report and receive reduced 
reporting in the final rule.\12\ The agencies did not receive comment 
on this proposed criterion and are finalizing as proposed.
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    \10\ See 12 CFR 3.100(b) (OCC); 217.100(b) (Board); 324.100(b) 
(FDIC). The agencies have invited comment on a proposed rule that 
would revise the framework for determining the applicability of the 
advanced approaches capital requirements for U.S. banking 
organizations. See Proposed Changes to Applicability Thresholds for 
Regulatory Capital and Liquidity Requirements, 83 FR 66024 (December 
21, 2018).
    \11\ See 12 CFR part 3, subpart E, and 12 CFR 3.10(c)(4) (OCC); 
12 CFR part 217, subpart E, and 12 CFR 217.10(c)(4) (Board); 12 CFR 
part 324, subpart E, and 12 CFR 324.10(c)(4) (FDIC).
    \12\ If an institution has received an exemption from the 
application of subpart E of the agencies' regulatory capital rules, 
the exclusion under this criterion would not apply.
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    Institutions Assessed as Large or Highly Complex by the FDIC. The 
proposal also would have excluded from the definition of ``covered 
depository institution'' an insured depository institution that is 
assessed as a ``large institution'' or ``highly complex institution,'' 
as defined in the FDIC's deposit insurance assessment regulations.\13\
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    \13\ For the purposes of the FDIC's deposit insurance assessment 
regulations, a ``small institution'' generally is an insured 
depository institution with less than $10 billion in total assets. 
See 12 CFR 327.8(e). Generally, a ``large institution'' is an 
insured depository institution with more than $10 billion in total 
assets. See 12 CFR 327.8(f). However, an institution with assets 
between $5 billion and $10 billion may request treatment as a large 
institution for deposit insurance assessments, and few institutions 
have made this request to date. See 12 CFR 327.16(f). Generally, a 
``highly complex institution'' is: (i) An insured depository 
institution (excluding a credit card bank) that has had $50 billion 
or more in total assets for at least four consecutive quarters, is 
controlled by a U.S. parent holding company that has had $500 
billion or more in total assets for four consecutive quarters, or is 
controlled by one or more intermediate U.S. parent holding companies 
that are controlled by a U.S. holding company that has had $500 
billion or more in assets for four consecutive quarters; or (ii) a 
processing bank or trust company. See 12 CFR 327.8(g) and (s).

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[[Page 29042]]

    Under the FDIC's deposit insurance assessment regulations, large 
institutions and highly complex institutions are assessed using CAMELS 
ratings \14\ combined with certain forward-looking financial measures 
that reflect the risks such institutions pose to the Deposit Insurance 
Fund.\15\ The FDIC uses the data reported by a large institution or a 
highly complex institution on either the FFIEC 031 or FFIEC 041 Call 
Report, as appropriate, to calculate the institution's deposit 
insurance assessment rate. For example, the FDIC uses data on Schedule 
RC-O regarding higher-risk assets, which are not reported on the FFIEC 
051 Call Report, to calculate financial ratios used to determine a 
large or a highly complex institution's deposit insurance assessment 
rate.
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    \14\ A financial institution is assigned a ``CAMELS'' composite 
rating based on an evaluation and rating of six essential components 
of an institution's financial condition and operations. These 
component factors address the: Adequacy of capital (C); quality of 
assets (A); capability of management (M); quality and level of 
earnings (E); adequacy of liquidity (L); and sensitivity to market 
risk (S).
    \15\ See 12 CFR 327.16(b); 76 FR 10672, 10688-10698 (February 
25, 2011).
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    The agencies did not receive comment on this proposed criterion and 
are finalizing as proposed. This eligibility criterion ensures that an 
institution that meets the asset-size criterion based on its report of 
condition for the second calendar quarter of a previous year, but is 
treated as a large or highly complex institution for deposit insurance 
assessment purposes, will continue to file the FFIEC 031 or FFIEC 041 
Call Report, as appropriate, which contain the data items required by 
the FDIC to calculate the institution's deposit insurance assessment 
rate. As long as an institution continues to be assessed as a large or 
highly complex institution, it is ineligible under the final rule to 
file the FFIEC 051 Call Report, including its reduced reporting, until 
it is reclassified for deposit insurance assessments and assessed as a 
``small institution.''

B. Reduced Reporting

    The proposal would have implemented the reduced reporting required 
by section 205 by allowing covered depository institutions to file the 
FFIEC 051 Call Report, as it is the most streamlined version of the 
Call Report and already provides significant reduced reporting in the 
first and third calendar quarters. The agencies, in the PRA section of 
the proposal, also proposed further reducing the reporting required on 
the FFIEC 051 Call Report in the first and third calendar quarters, by 
changing reporting of certain items from quarterly to semiannual or 
annual. The final rule implements the reduced reporting required by 
section 205 by allowing covered depository institutions to file the 
FFIEC 051 Call Report; the agencies, through the PRA section of the 
SUPPLEMENTARY INFORMATION, also are further reducing the reporting 
required on the FFIEC 051 Call Report in the first and third calendar 
quarters.
    The majority of comments received by the agencies on the proposal 
related to the agencies' proposed use of the FFIEC 051 Call Report. 
Commenters expressed the view that using the FFIEC 051 Call Report to 
allow reduced reporting in the first and third calendar quarters would 
not provide sufficient reporting relief, and cited the agencies' burden 
estimates under the PRA for the proposed changes to the FFIEC 051 Call 
Report in support of their views. Many of these commenters recommended 
an alternate version of the Call Report for the first and third 
calendar quarters that consists only of an institution's basic 
financial statements, such as a balance sheet, income statement, and 
statement of changes in shareholders' equity. One commenter suggested 
offering this simplified reporting to a smaller subset of institutions 
that meet more stringent eligibility criteria, such as being well 
managed. Another commenter suggested that the agencies should tailor 
the scope of regulatory reporting to each institution based on that 
institution's characteristics. One commenter proposed including a 
schedule for regulatory capital in addition to the basic financial 
statements, while another commenter requested a Call Report that was no 
longer than 10 pages.
    Other commenters, particularly investment analysts evaluating the 
banking industry, raised concerns about a reduction in publicly-
available information from institutions that adopt reduced reporting. 
These commenters indicated they would need to supplement the publicly-
available information by making specific information requests to the 
institutions they analyze. Another commenter pointed out that some 
items that would be reported less frequently are used as part of 
regulatory and investor offsite monitoring processes, and that limiting 
this information may result in increased information requests or review 
of certain items during examinations due to the more limited 
information on the Call Reports. According to the commenter, these 
reductions to the Call Report may create greater burden on an 
institution than the relief provided by filing a more limited Call 
Report two times per year.
    Section 205 allows the agencies to establish the criteria for 
reduced reporting. The agencies' proposal sought to further reduce 
reporting for covered depository institutions in the first and third 
calendar quarters while still collecting the data necessary to meet the 
agencies' statutory mandates and missions, ensuring continued receipt 
of appropriate information to monitor safety and soundness and striking 
a balance between reducing reporting burden and obtaining sufficient 
information for supervisory purposes, including on-site examinations 
and off-site monitoring of covered depository institutions.
    The agencies are implementing the reduced reporting required by 
section 205 first by offering an expanded group of institutions the 
option to file the FFIEC 051 Call Report each calendar quarter. The 
agencies elected to use the FFIEC 051 Call Report as the version of the 
report of condition to implement reduced reporting primarily because: 
It is the Call Report that collects the least information; reduced 
reporting in the reports for the first and third quarters was one of 
the primary objectives when the FFIEC 051 Call Report was first 
implemented in 2017 and revised in 2018; and it is already being used 
by the majority of institutions with total assets below the $5 billion 
statutory threshold set by section 205. The FFIEC 051 Call Report 
previously was developed to enable institutions with total assets of 
less than $1 billion to report less information, and contains 882 fewer 
data items than the FFIEC 041 Call Report, which is the agencies' 
standard version of the Call Report.\16\ The final rule extends 
eligibility to file the FFIEC 051 Call Report from certain institutions 
with less than $1 billion in total assets to certain institutions with 
less than $5 billion in total assets. As a result, this approach 
provides significant reporting relief by offering covered depository 
institutions of between $1 billion and less than $5 billion in total 
assets that currently are required to file the FFIEC 041 Call Report 
the option to file the FFIEC 051 Call Report. Under the final rule, 
covered depository institutions

[[Page 29043]]

with total assets between $1 billion and less than $5 billion are 
eligible to file the FFIEC 051 Call Report in each calendar quarter of 
a calendar year, not just in the first and third quarters, which will 
provide additional reporting relief for these institutions compared to 
the FFIEC 041 Call Report. Overall, the agencies estimate that the 
burden hours for institutions with total assets between $1 billion and 
less than $5 billion would decline 12.73 hours per quarter, from 63.69 
hours filing the FFIEC 041 to 50.96 hours filing the FFIEC 051.
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    \16\ The current version of the FFIEC 051 Call Report includes 
1,147 reportable data items in each of the first and third calendar 
quarters, compared with 2,029 reportable data items required on the 
FFIEC 041 Call Report in those calendar quarters.
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    In addition to increasing the number of institutions eligible to 
file the FFIEC 051 Call Report every quarter, as discussed in the PRA 
section of the SUPPLEMENTARY INFORMATION, the agencies are further 
reducing the reporting required on the FFIEC 051 Call Report in the 
first and third calendar quarters. The agencies are reducing the 
frequency of reporting of approximately 37 percent of the existing data 
items in this report \17\ from quarterly to semiannual. The principal 
areas of reduced reporting in the first and third calendar quarters 
include data items related to categories of risk-weighting of various 
types of assets and other exposures under the agencies' regulatory 
capital rules, fiduciary and related services assets and income, and 
troubled debt restructurings by loan category. This reduction in 
reporting frequency for certain data items provides all covered 
depository institutions that currently file the FFIEC 051 Call Report, 
including those with less than $1 billion in total assets, with 
additional reduced reporting in the first and third calendar quarters.
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    \17\ This percentage is relative to the FFIEC 051 Call Report 
filed as of June 30, 2018.
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    The agencies recognize that the reduction in reporting frequency 
offered for certain data items as described in the PRA section below 
may not provide as much of a burden reduction for every covered 
depository institution, because some of those data items are not 
relevant to or completed by every covered depository institution due to 
different asset portfolios and activities. However, the final rule 
expediently provides all covered depository institutions the option of 
reduced reporting in the first and third calendar quarters. For 
institutions with total assets of less than $1 billion that file the 
current version of the FFIEC 051 Call Report, implementing the further 
streamlined FFIEC 051 Call Report should require less cost and fewer 
systems changes than switching to a completely new version of a 
regulatory report. To align with the implementation of the final rule, 
the agencies are issuing the accompanying PRA notice to implement 
changes to the FFIEC 051 Call Report consistent with the rule.
    In response to commenters' requests that the agencies implement a 
Call Report comprised only of basic financial statements, the agencies 
note that, by law, they must collect certain data items on a quarterly 
basis, including items that are not typically found on basic financial 
statements.\18\ In addition to information the agencies are required to 
collect on a quarterly basis by statute, the agencies need other 
information to effectively monitor the safety and soundness of 
institutions and the financial system, as well as to monitor compliance 
with consumer financial protection laws and regulations and to fulfill 
agency-specific missions. With respect to commenters' concerns that the 
reporting reductions may result in industry analysts or investors not 
being able to obtain as much information from an institution through 
its Call Report, the agencies note that an institution is not required 
to switch to the FFIEC 051 Call Report, and the final rule does not 
restrict an institution from providing additional financial information 
to the public that would otherwise not be required to be reported in 
the first and third calendar quarters.
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    \18\ For example, certain data collection and reporting 
requirements are satisfied through the collection of data on the 
various Call Report schedules: 12 U.S.C. 1817(a)(4) and (6) require 
reporting of deposit liabilities (Schedules RC-E); 12 U.S.C. 
1817(a)(3) and (c) requires four Call Reports annually that serve as 
the basis for determining an institution's deposit insurance 
assessment (Schedule RC-O, and certain items on Schedules RI, RC, 
RC-C, RC-E, RC-N, and RC-R); 12 U.S.C. 1831n(a)(3)(C) requires that 
off-balance sheet items be reported or taken into account in any 
report of condition (Schedule RC-L); 12 U.S.C. 1831o and its 
implementing regulations address prompt corrective action 
requirements (12 CFR part 6 (OCC); 12 CFR part 208, subpart D 
(Board); and 12 CFR part 324, subpart H (FDIC)) and rely on 
reporting of regulatory capital quarterly (Schedule RC-R)).
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    As the agencies explained when issuing the proposal, Call Report 
data provides critical information necessary for the agencies' 
effective supervision of depository institutions.\19\ In their 
statutory roles of chartering, licensing, supervising, or insuring 
institutions, the agencies principally rely on information obtained 
through on-site examinations of institutions, off-site supervisory 
activities between examinations, and information reported on an 
institution's report of condition. The report of condition is the Call 
Report for most insured depository institutions. Consistent with the 
FFIEC's mandate, Call Reports collect the most current financial and 
statistical data available in a standardized format to identify 
uniformly areas of focus for supervision, including for on-site and 
off-site examinations.\20\ The agencies use Call Report data in 
monitoring the condition, performance, and risk profile of individual 
institutions and the industry as a whole. Call Report data assist the 
agencies in their collective missions of promoting the safety and 
soundness of institutions and the financial system and the protection 
of consumer financial rights, as well as fulfilling agency-specific 
missions, such as conducting monetary policy, promoting financial 
stability, and administering federal deposit insurance. The agencies 
also use Call Report data in evaluating institutions' applications, 
including interstate merger and acquisition applications. In addition, 
Call Report data are used by the appropriate agencies to calculate 
institutions' deposit insurance assessments as well as national banks' 
and federal savings associations' semiannual assessment fees. In the 
absence of data collected through a standardized format, such as the 
Call Report, the agencies likely would need to rely on significantly 
more ad hoc data requests to individual institutions. A lack of 
information also increases the risk of missing new or significantly 
changed activities when the agencies plan on-site examinations, which 
could require the agencies to spend additional time on-site reviewing 
risk areas for which bank data was not submitted in the Call Report.
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    \19\ See 83 FR 58433-58434.
    \20\ See e.g., 12 U.S.C. 3301.
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    The agencies remain mindful, however, of the impact that collecting 
Call Report data may have on covered depository institutions. As 
discussed in the proposal, the agencies (through the FFIEC) started an 
initiative to reduce the reporting burden on all institutions, 
especially community banks, in December 2014.\21\ The result of the 
agencies' multi-year effort was a meaningful reduction in reporting for 
all institutions that filed the FFIEC 041 Call Report at the start of 
the effort. As compared with the FFIEC 041 Call Report in use 
immediately before the implementation of the FFIEC 051 Call Report, the 
current FFIEC 041 Call Report now reflects a reduction of approximately 
11 percent of the data items and provides for reduced reporting 
frequency of approximately 3 percent of the data items. The smallest 
institutions (with less than $1 billion in total assets) received an 
even greater reduction in reporting with the

[[Page 29044]]

implementation of the FFIEC 051 Call Report for the March 31, 2017, 
reporting date. The FFIEC 051 Call Report now represents a reduction of 
approximately 43 percent of the data items and provides for reduced 
reporting frequency of approximately 6 percent of the data items, as 
compared to the FFIEC 041 Call Report in use as of December 31, 2016, 
immediately before the implementation of the FFIEC 051 Call Report. 
Thus, the implementation of the FFIEC 051 Call Report provides a 
significant reduction in reporting burden for institutions that choose 
to file this version of the Call Report.
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    \21\ See 83 FR 58484.
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    In the interest of making reduced reporting available to covered 
depository institutions expediently, particularly for institutions with 
total assets of between $1 billion and less than $5 billion, the 
agencies are finalizing this rule as proposed. The agencies also 
anticipate further reductions to the Call Report. In particular, the 
agencies have proposed additional reductions to the FFIEC 051 Call 
Report \22\ in connection with the proposal \23\ that was issued by the 
agencies in February of 2019 to simplify regulatory capital 
requirements for qualifying community banking organizations, as 
required by section 201 of the EGRRCPA, which the agencies estimate 
would further reduce the average FFIEC 051 Call Report burden from 
39.77 hours to 33.65 hours, a reduction of 6.12 hours per quarter.\24\
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    \22\ 84 FR 16560 (April 19, 2019).
    \23\ 84 FR 3062 (February 8, 2019).
    \24\ 84 FR 16563.
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    The agencies are committed to exploring further burden reduction 
and are actively evaluating further revisions to the FFIEC 051 Call 
Report, consistent with guiding principles developed by the FFIEC.\25\ 
The agencies also are considering ways to simplify the Call Report 
forms and instructions. The agencies would take into account whether 
revisions can be made to the FFIEC 051 Call Report without violating 
compliance with existing laws and regulations, jeopardizing safety and 
soundness supervision and monitoring, or impairing the Board's ability 
to conduct monetary policy or the FDIC's ability to calculate deposit 
insurance assessments.
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    \25\ See 83 FR 58434.
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C. Reservation of Authority

    Consistent with the agencies' authorities and current practices, 
the final rule includes a reservation of authority that allows the 
appropriate Federal banking agency, in consultation with the relevant 
state chartering authority, if applicable, and on an institution-
specific basis, to require a covered depository institution under the 
agency's supervision to file the FFIEC 041 Call Report, or any 
successor thereto, in any calendar quarter or quarters in which the 
covered depository institution would otherwise be eligible to file the 
FFIEC 051 Call Report, based on the agency's determination that such 
filing is necessary for supervisory purposes. In making such a 
determination, the appropriate Federal banking agency may consider 
criteria including whether the institution is significantly engaged in 
one or more complex, specialized, or other higher-risk activities, such 
as those for which limited information is reported in the FFIEC 051 
Call Report compared to the FFIEC 041 Call Report. For example, if a 
covered depository institution has a considerable concentration of 
either trading assets or mortgage banking activities, the appropriate 
Federal banking agency may seek additional information from that 
institution by requiring the institution to file the FFIEC 041 Call 
Report. Generally, a covered depository institution's safety and 
soundness, size, complexity, activities, risk profile, and other 
factors, such as an increase in a covered depository institution's 
asset size resulting from a merger or acquisition, also may be taken 
into consideration.
    If, after considering such factors, the agency determines that a 
covered depository institution should be required to file the FFIEC 041 
Call Report, the agency would provide notice to the covered depository 
institution prior to the filing requirement's becoming effective. The 
reservation's terms also would be provided in the notice. Any covered 
depository institution required by its appropriate Federal banking 
agency under the reservation of authority to file the FFIEC 041 Call 
Report in lieu of the FFIEC 051 would be required to continue to file 
the FFIEC 041 Call Report until the appropriate Federal banking agency 
provides notice to the covered depository institution that it is no 
longer required to file the FFIEC 041 Call Report.
    This authority provides the agencies with the flexibility to 
require an institution to report and disclose additional Call Report 
data if warranted by an institution's individual circumstances and risk 
profile. Consistent with current supervisory practices and experience, 
the exercise of the reservation of authority generally would be a 
decision made by a member of the appropriate agency's senior management 
and would not be at the discretion of examination staff. The agencies 
received no comment on this aspect of the proposed rule and are 
finalizing it as proposed.

V. Related Agency-Specific Revisions

A. Board

    The Board does not currently have a rule that sets forth the report 
of condition filing requirements of state-chartered banks that are 
members of the Federal Reserve System (state member banks), and instead 
relies on its statutory authority under section 9 of the Federal 
Reserve Act (FRA) and section 7(a)(3) of the FDI Act to require state 
member banks to provide reports of condition. In light of section 205's 
requirement that the Board issue a rule that allows for reduced 
reporting by certain eligible Board-supervised insured depository 
institutions, the Board proposed to add a new subpart K to Regulation 
H,\26\ which would incorporate the rule text implementing section 205. 
The Board received no comments on the proposed rule and is finalizing 
it as proposed. In addition to insured state member banks, the Board 
also supervises uninsured state member banks, such as nondepository 
trust companies. The Board requires such institutions to use the Call 
Report to submit financial data. As previously discussed in 
SUPPLEMENTARY INFORMATION section IV.A., the Board's final rule extends 
the use of the reduced reporting requirement to uninsured state member 
banks if they meet the criteria for covered depository institutions 
identified in the rule.
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    \26\ The Board's Regulation H governs the membership of state 
banking institutions in the Federal Reserve System. 12 CFR part 208.
---------------------------------------------------------------------------

    The Board also proposed to include in new subpart K, pursuant to 
its statutory authority under section 9 of the FRA and section 7(a)(3) 
of the FDI Act, Sec.  208.122 that would set forth the general 
requirement that all state member banks file consolidated reports of 
condition and income in accordance with the instructions for these 
reports. The Board received no comments on Sec.  208.122 and is 
finalizing the subsection as proposed.

B. FDIC

    The FDIC amends part 304 of its Rules and Regulations, by 
restructuring the regulation and creating a ``subpart A'' and ``subpart 
B.'' Subpart A now contains the current text of part 304, with limited 
technical, non-substantive changes. The technical, non-substantive 
changes include: (1) Updating the address and contact information in

[[Page 29045]]

Sec.  304.2; (2) clarifying that Sec.  304.3(a) and (b) apply to 
insured depository institutions; (3) updating references in Sec.  
304.3(a) to the various Call Reports to include the recently 
implemented FFIEC 051 Call Report; and (4) updating the references to 
FDIC divisions to reflect changes in nomenclature. In Subpart B, the 
FDIC includes the regulatory text implementing section 205.
    The FDIC believes that this approach to restructuring part 304 will 
incorporate the entirety of the new, substantive text of the final rule 
that implements section 205 of the EGRRCPA with minimal effect to the 
current text. Thus, a state nonmember bank or state savings association 
that believes it qualifies as a covered depository institution would be 
able to make that determination based on the regulatory text contained 
in subpart B.

C. OCC

    Insured depository institutions identified in section 205 include 
insured Federal branches of foreign banks, as defined under section 
3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)). While 
these insured Federal branches are included in the statute, they 
currently file the FFIEC 002 report of condition. The FFIEC 002 is used 
by insured and uninsured state and Federal branches and agencies of 
foreign banks and contains a significant amount of information relating 
to the operations and foreign connections of these entities. As 
described above in the International Activities section, this 
additional information is necessary for the OCC to supervise insured 
Federal branches, and a reduced reporting option would not be 
appropriate given the nature of their activities. Therefore, the OCC's 
final rule includes a criterion excluding institutions that file the 
FFIEC 002 report of condition from being eligible for reduced 
reporting. The OCC received no comments on this provision and will 
finalize as proposed.
    In addition to insured depository institutions, which are 
specifically identified in section 205, the OCC also supervises a 
number of uninsured national banks, such as trust banks. The OCC has 
permitted some of these institutions to use the Call Report to submit 
financial data and to use the existing FFIEC 051 if they meet the 
current eligibility requirements for filing that Call Report. 
Therefore, the OCC's rule extends the use of the reduced reporting 
requirement to uninsured national banks if they meet the criteria for 
covered depository institutions identified in the rule. As discussed 
earlier, the OCC received one comment objecting to permitting uninsured 
institutions to use reduced reporting. For the reasons discussed 
earlier, the OCC does not agree with the commenter and is finalizing 
this provision as proposed.

VI. Regulatory Analyses

A. Paperwork Reduction Act

    Certain provisions of the final rule affect a ``collection of 
information'' within the meaning of the Paperwork Reduction Act of 1995 
(PRA) (44 U.S.C. 3501-3521). In accordance with the requirements of the 
PRA, 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.
    The agencies have reviewed the final rule, including the changes to 
the FFIEC 051 Call Report that are discussed in this PRA section, and 
determined that it would result in changes to the reporting 
requirements associated with the FFIEC 051 Call Report, which have been 
previously cleared by the OMB. The agencies made submissions to the OMB 
at the proposed rule stage. The OMB instructed the agencies to resubmit 
the notice at the final rule stage addressing any comments received and 
analyzing the expected burden reduction associated with the final rule. 
The final rule expands the eligibility to file the FFIEC 051 Call 
Report to certain institutions with $1 billion or more, but less than 
$5 billion, in total assets that meet other eligibility criteria. In 
addition to the expanded eligibility to file this report, the agencies 
also are making other revisions to the FFIEC 051 Call Report, as 
discussed under Current Actions below. With the OMB approval, these 
revisions to the FFIEC 051 Call Report are proposed to take effect as 
of the September 30, 2019, report date. The agencies are proposing to 
extend for three years, with revision, the reporting requirements 
associated with the Call Report.
Current Actions
Overview
    First, as described above, the agencies are revising the criteria 
for determining whether an institution is eligible to file the FFIEC 
051 Call Report to match the criteria in the final rule. While the 
final rule provides for reduced reporting on reports filed for the 
first and third calendar quarters, the agencies are revising the 
eligibility criteria to extend to all eligible institutions with less 
than $5 billion in total assets that meet other criteria in the final 
rule the option to file the FFIEC 051 Call Report for all four calendar 
quarters. Therefore, if an institution is eligible to file the FFIEC 
051 Call Report for the first and third calendar quarters pursuant to 
the rule, the institution also could file the FFIEC 051 Call Report for 
the second and fourth calendar quarters provided the institution 
continues to meet the non-asset-size criteria. The revisions to the 
eligibility criteria for filing the FFIEC 051 Call Report would be made 
in the General Instructions section of the Call Report instructions and 
would include the increase in the asset-size threshold to less than $5 
billion in total assets as well as the addition to the existing non-
asset-size criteria of a criterion to exclude institutions that are 
treated as large or highly complex institutions for deposit insurance 
assessment purposes. The Call Report instructions currently provide 
that, beginning with the first quarterly report date following the 
effective date of a business combination, a transaction between 
entities under common control, or a branch acquisition that is not a 
business combination involving an institution and one or more other 
depository institutions, the resulting institution, regardless of its 
size prior to the transaction, must file the FFIEC 041 Call Report if 
its consolidated total assets after the consummation of the transaction 
are $1 billion or more. The agencies are removing this provision from 
the instructions, but the resulting institution may be required to file 
the FFIEC 041 Call Report consistent with the reservation of authority 
in the rule. All of the final FFIEC 051 Call Report eligibility 
criteria, along with justifications, are provided above in section 
IV.A. of the SUPPLEMENTARY INFORMATION section (``Covered Depository 
Institution''). Based on Call Report data as of June 30, 2018, there 
were 547 institutions with $1 billion or more, but less than $5 billion 
in total assets that likely would meet the definition of ``covered 
depository institution'' in the final rule.
    Second, the agencies are revising the reporting frequency and 
applicability of certain data items in the FFIEC 051 Call Report. 
Specifically, the agencies are reducing the reporting frequency of 
certain existing data items in the FFIEC 051 Call Report from quarterly 
to semiannual reporting. The agencies are reducing reporting in the 
first and third calendar quarters by 502 data items \27\ or

[[Page 29046]]

a reduction of approximately 37 percent of the data items included in 
the June 30, 2018, FFIEC 051 Call Report.
---------------------------------------------------------------------------

    \27\ This number includes 69 data items collected on Schedule 
RC-T, Fiduciary and Related Services, that are only reported by 
certain institutions with fiduciary powers that have fiduciary 
activity to report.
---------------------------------------------------------------------------

    Third, for covered depository institutions with total assets of $1 
billion or more, but less than $5 billion, the agencies are adding to 
the FFIEC 051 Call Report certain data items that these institutions 
currently report on the FFIEC 041 Call Report, but generally with 
reduced reporting frequency. The agencies are adding these items to 
meet the agencies' data needs and assist the agencies in fulfilling 
their missions of ensuring the safety and soundness of depository 
institutions and the financial system, as well as the protection of 
consumer financial rights and administering federal deposit insurance.
    As described above, the agencies received 1,018 comments on the 
combination proposed rule and PRA revision. A majority of those 
comments addressed the proposed rule, particularly the agencies' 
proposal to use the FFIEC 051 Call Report to establish reduced 
reporting in the first and third quarters. Comments on the proposed 
revisions to the FFIEC 051 Call Report itself are discussed and 
addressed under the relevant headings below.
Changes to the Frequency of Data Collection in the FFIEC 051 Call 
Report
    As explained in more detail in the initial PRA section in the 
proposed rule, the agencies are reducing the frequency of the following 
items on the FFIEC 051 Call Report from quarterly to semiannual (i.e., 
these items would be reported in the June 30 and December 31 Call 
Reports only):
     Schedule RI, Income Statement, Memorandum item 14.
     Schedule RC-C, Part I, Loans and Leases, Memorandum items 
1.a through 1.f, and Schedule RC-N, Past Due and Nonaccrual Loans, 
Leases, and Other Assets, Memorandum items 1.a through 1.f.
     Schedule RC-E, Deposit Liabilities, Memorandum items 1.a 
and 5.
     Schedule RC-M, Memoranda, items 8.a through 8.c.
     Schedule RC-R, Part II, Regulatory Capital Risk-Weighted 
Assets, items 1 through 25, columns A through U, as applicable, and 
Memorandum items 1 through 3, including all subitems and columns.
     Schedule RC-T, Fiduciary and Related Services, items 4 
through 13, columns A through D; items 14 through 22; and Memorandum 
items 3.a through 3.h, for institutions with total fiduciary assets 
greater than $250 million but less than or equal to $1 billion, and 
gross fiduciary and related services income less than or equal to 10 
percent of total revenue.\28\
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    \28\ Total fiduciary assets are measured as of the preceding 
December 31. Gross fiduciary and related services income is measured 
as a percentage of revenue (net interest income plus noninterest 
income) for the preceding calendar year.
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    The agencies received a number of comments on the proposed 
reductions in frequency. One commenter objected to the proposal, 
stating that the changes increase the burden associated with making 
systems changes and increase the risk of errors if data is only 
reconciled and reported semiannually instead of quarterly. Several 
commenters stated that the frequency reductions on Schedule RC-T would 
not provide a burden reduction for them, because many of the data items 
already are not reported by many small banks. Two commenters stated 
that the frequency reductions on Schedule RC-R are meaningless, either 
because institutions must still calculate total risk weighted assets on 
Schedule RC-R, Part II, or that the agencies' proposed rulemaking on a 
simplified leverage ratio for community banks (CBLR proposal) \29\ 
would make the existing Schedule RC-R irrelevant for most institutions.
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    \29\ 84 FR 3062 (February 8, 2019).
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    The agencies are implementing the frequency reductions as proposed. 
The agencies note that the proposal is only reducing the minimum 
frequency for items reported in the FFIEC 051 Call Report. Covered 
depository institutions may still elect to submit data on a quarterly 
basis; the Central Data Repository, which the agencies use to receive 
and store data on the Call Reports, will still accept quarterly data 
submissions for items even if those items are only required 
semiannually. Therefore, an institution that wishes to continue 
submitting these items to the agencies on a quarterly basis may do so.
    Regarding Schedule RC-R, currently, institutions must continue to 
calculate and report total risk-weighted assets. However, there is some 
burden reduction associated with eliminating the reporting of the data 
item components to calculate total risk-weighted assets (inputs) in the 
first and third quarters. In calculating total risk-weighted assets in 
the first and third quarters, institutions may be able to use more 
efficient methods to collect the inputs rather than using the template 
provided by the agencies, and would not need to validate each input 
reported on Schedule RC-R, Part II, which would save the institutions 
review time in preparing that schedule. In addition, as another 
commenter noted, the agencies' CBLR proposal would make Schedule RC-R, 
Part II, irrelevant for qualifying community banking organizations. The 
agencies note that if the CBLR proposal is implemented as proposed, 
institutions that qualify would experience additional burden reduction 
in the Call Report compared to preparing the existing reporting on 
Schedule RC-R. The estimated average burden hours for the FFIEC 051 
Call Report is currently 39.77,\30\ which would decrease to 33.65 under 
the CBLR proposal. Therefore, the CBLR proposal would represent a 
reduction in estimated average burden hours per quarter of 6.12 (or 
15.39 percent) for the FFIEC 051 Call Report for institutions.\31\ The 
agencies have opted to pursue burden relief now and have proposed to 
provide additional relief in the future on this schedule.
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    \30\ 84 FR 4131 (February 14, 2019).
    \31\ 84 FR 16560 (April 19, 2019).
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Addition of Data Items to the FFIEC 051 Call Report for Institutions 
With Total Assets of $1 Billion or More
    The agencies are adding certain data items to the FFIEC 051 Call 
Report that would apply only to covered depository institutions with 
total assets of $1 billion or more. These items are currently reported 
by institutions with total assets of $1 billion or more that file the 
FFIEC 031 or FFIEC 041 Call Report, but they are not required to be 
completed by institutions with less than $1 billion in total assets 
that file the FFIEC 031, FFIEC 041, or FFIEC 051 Call Reports. 
Therefore, the additional data items would not represent new data items 
for covered depository institutions with total assets of $1 billion or 
more, but rather are items carried over from the FFIEC 041 version of 
the Call Report, generally using the same definitions and calculations. 
Furthermore, all but one of these items would be reported less 
frequently in the FFIEC 051 Call Report than they are currently 
reported in the FFIEC 041 Call Report. More detailed information on 
these items can be found in the PRA section of the agencies' proposed 
rule.\32\
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    \32\ 83 FR 58442-58443.
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     Schedule RI, Memorandum items 15.a. through 15.d. These 
items currently are required quarterly in the FFIEC 041 Call Report and 
only would be required annually as of December 31 in the FFIEC 051 Call 
Report from institutions with $1 billion or more, but less than $5 
billion in total assets.
     Schedule RI-C, Disaggregated Data on the Allowance for 
Loan and Lease Losses (ALLL). The agencies are adding a condensed 
version of the existing FFIEC 041 Schedule RI-C, Part I, to the

[[Page 29047]]

FFIEC 051 Call Report as Schedule RI-C and reducing the reporting 
frequency of this condensed schedule from quarterly to semiannual 
(i.e., reported in the June 30 and December 31 Call Reports only) for 
institutions with $1 billion or more, but less than $5 billion, in 
total assets. Consistent with the agencies' proposed and final 
revisions to the FFIEC 041 Call Report related to implementation of the 
current expected credit losses (CECL) methodology,\33\ institutions in 
this size range that have adopted CECL would also report disaggregated 
data on the allowance for credit losses on held-to-maturity securities 
on Schedule RI-C on a semiannual basis.
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    \33\ See 83 FR 49160 (September 28, 2018) and 84 FR 4131 
(February 14, 2019).
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     Schedule RC-E, Memorandum items 6 and 7, including all 
subitems. These items currently are required quarterly in the FFIEC 041 
Call Report and only will be required annually as of December 31 in the 
FFIEC 051 Call Report from institutions with $1 billion or more, but 
less than $5 billion in total assets.
     Schedule RC-O, Other Data for Deposit Insurance and FICO 
Assessments, Memorandum item 2. This item is required quarterly in the 
FFIEC 041 Call Report, and will continue to be required quarterly in 
the FFIEC 051 Call Report from institutions with $1 billion or more, 
but less than $5 billion in total assets.
    The agencies received five comments on the items proposed to be 
added to the FFIEC 051 Call Report. Four comments objected to adding 
the data items on Schedules RI and RC-E. These data items relate to 
consumer deposit accounts and deposit account fees, and the commenters 
stated that this information should not be collected in the Call 
Report. One comment requested that the agencies retain the items to be 
added to the FFIEC 051 Call Report on the same schedules and in the 
same locations in the FFIEC 051 Call Report as they are reported in the 
FFIEC 041 Call Report, to minimize the burden of making systems changes 
to implement the revisions.
    These data items, including the items on Schedules RI and RC-E, are 
necessary for the agencies to supervise and monitor consumer deposit 
account activity at institutions with total assets of $1 billion or 
more, but less than $5 billion that file the FFIEC 051 Call Report. The 
agencies also note that the items on Schedules RI and RC-E would be 
collected annually instead of quarterly, which would provide a 
reduction in burden for these institutions in the other three quarters. 
Regarding the comment on the location of these items, the agencies 
agree with the commenter's recommendation and will retain the items 
that were proposed to be moved from Schedules RI, RI-C, and RC-E on 
their existing schedules rather than including them in Schedule SU, 
Supplemental Information.
Additional Comments on the Call Report
    The agencies also received one comment suggesting that they propose 
revisions to the FFIEC 031 and FFIEC 041 versions of the Call Report 
for institutions with total assets of less than $5 billion that either 
are not eligible for the reduced reporting or choose not to use reduced 
reporting in the FFIEC 051 Call Report. While the agencies may consider 
proposing burden-reducing revisions to the FFIEC 031 or 041 versions of 
the Call Report in the future, the agencies are not prepared to propose 
any specific revisions to these versions of the Call Report at this 
time. If an institution does not meet the criteria to use the FFIEC 051 
Call Report, then reporting on the existing FFIEC 031 or FFIEC 041 Call 
Report is appropriate.
Effective Date
    Subject to OMB approval, the revisions to the FFIEC 051 Call Report 
described above would take effect as of the September 30, 2019, report 
date. The less than $5 billion asset-size test for determining 
eligibility to file the FFIEC 051 Call Report in 2019 would be based on 
the total assets reported on an institution's Call Report as of June 
30, 2018. An institution eligible to file the FFIEC 051 Call Report 
also has the option to file the FFIEC 041 Call Report. For an 
institution with less than $5 billion in total assets that qualifies to 
use the FFIEC 051 Call Report for the first time as a result of the 
agencies' increase in the asset-size reporting threshold for the FFIEC 
051 Call Report from less than $1 billion to less than $5 billion, and 
that desires to use that report form but is unable to do so for the 
September 30, 2019, Call Report date, the institution may begin 
reporting on the FFIEC 051 Call Report as of the December 31, 2019, 
report date. Beginning in 2020, an institution should file whichever 
version of the Call Report for which it is both eligible and chooses to 
file in the first quarter of that year, for the remainder of that year 
if it meets the asset-size threshold for eligibility as of June 30, 
2019, and continues to meet the non-asset-size criteria.
Proposed Revision, With Extension for Three Years, of the Following 
Information Collections
    Report Title: Consolidated Reports of Condition and Income (Call 
Report).
    Form Number: FFIEC 031, FFIEC 041, and FFIEC 051 (for eligible 
small institutions).
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Type of Review: Revision and extension of currently approved 
collections.
    OCC:
    OMB Control No.: 1557-0081.
    Estimated Number of Respondents: 1,178 national banks and federal 
savings associations.
    Estimated Average Burden per Response: 44.45 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 209,448 burden hours to file.
    Board:
    OMB Control No.: 7100-0036.
    Estimated Number of Respondents: 794 state member banks.
    Estimated Average Burden per Response: 48.42 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 153,782 burden hours to file.
    FDIC:
    OMB Control No.: 3064-0052.
    Estimated Number of Respondents: 3,483 insured state nonmember 
banks and state savings associations.
    Estimated Average Burden per Response: 43.44 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 605,206 burden hours to file.
    When the estimates are calculated across the agencies considering 
all expected filers of the FFIEC 051 Call Report, the estimated average 
burden hours per calendar quarter for this report are 40.27 hours. The 
burden hours for filers of the currently approved FFIEC 051 Call Report 
are 39.77 hours (using September 30, 2018, data). The increase in the 
overall average for the FFIEC 051 reflects that newly eligible 
institutions (with total assets between $1 billion and less than $5 
billion) generally have amounts to report in more items on that report 
than current filers (with total assets of less than $1 billion). For 
the current FFIEC 051 Call Report filers, the revisions to the FFIEC 
051 Call Report described in this document would decrease average 
burden hours per quarter from approximately 40.11 hours to 39.08 hours, 
a reduction of 1.03 hours per quarter (using December 31, 2018, data). 
For newly eligible filers, the average

[[Page 29048]]

burden hours would decrease from approximately 63.69 hours to 50.96 
hours, a reduction of 12.73 hours per quarter. 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 
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). In addition, the estimates of the 
average burden per response for FFIEC 051 Call Report filers are 
averages across the Call Reports for these filers for all four quarters 
of the year. As a consequence, the estimated average burden blends the 
effects of reduced reporting in the first and third quarters with the 
reporting that occurs in all four quarters. Estimates of the average 
burden hours solely for completing the FFIEC 051 Call Report in the 
first or the third quarter would be less than the overall average per 
response.
Comments on the Burden Estimate
    The agencies received two comments specifically about the burden 
calculation. One commenter stated that the reductions in frequency 
would save his institution approximately 2 hours per quarter. The 
commenter's estimate is consistent with the agencies' estimate of a 
savings of 1.03 hours per quarter. A second commenter stated that 
preparing the Call Report requires approximately 120 hours per quarter 
at his institution. For an institution that relies primarily on manual 
processes to complete the Call Report, the agencies' supervisory 
experiences indicate that 60-80 hours may be more typical. The agencies 
recognize that institutions may use unique approaches for preparing the 
Call Report that rely on varying degrees of manual and automated 
processes that are tailored to their individual circumstances, and the 
burden estimate reflects averages that take into consideration such a 
wide range of practices. However, increased use of automated systems 
generally results in greater efficiencies and lower manual intervention 
for institutions. The agencies note that their estimate of 
approximately 40 hours per quarter is consistent with an average across 
all institutions, including institutions that use automated systems and 
those that do not. While in some cases the set-up and operating costs 
of integrating general ledger and core systems with Call Report 
software as a means to substantially automate the Call Report 
preparation process may be significantly lower than the recurring cost 
of employees using manual or less automated processes, the agencies 
recognize institutions' prerogatives to make their own business 
decisions regarding the use of automation for the Call Report process.

B. Regulatory Flexibility Act Analysis

    The Regulatory Flexibility Act \34\ (RFA) requires an agency to 
either provide an initial regulatory flexibility analysis with a 
proposed rule for which general notice of proposed rulemaking is 
required or to certify that the proposed rule will not have a 
significant economic impact on a substantial number of small entities. 
The U.S. Small Business Administration (SBA) establishes size standards 
that define which entities are small businesses for purposes of the 
RFA.\35\ Under regulations issued by the SBA, the size standard to be 
considered a small business for banking entities subject to the 
proposed rule is $550 million or less in consolidated assets.\36\
---------------------------------------------------------------------------

    \34\ 5 U.S.C. 601 et seq.
    \35\ U.S. SBA, Table of Small Business Size Standards Matched to 
North American Industry Classification System Codes, available at 
https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf.
    \36\ See 13 CFR 121.201.
---------------------------------------------------------------------------

    OCC: The RFA requires an agency, in connection with a proposed 
rule, to prepare an Initial Regulatory Flexibility Analysis describing 
the impact of the rule on small entities (defined by the SBA for 
purposes of the RFA to include commercial banks and savings 
institutions with total assets of $550 million or less and trust 
companies with total revenue of $38.5 million or less) or to certify 
that the proposed rule, if finalized, would not have a significant 
economic impact on a substantial number of small entities. As of 
December 31, 2018, the OCC supervised 758 small entities. The rule 
would expand eligibility to file the FFIEC 051 version of the Call 
Report to institutions with total assets of between $1 billion and less 
than $5 billion. None of these newly eligible institutions would be 
considered small entities as defined by the SBA. Therefore, the OCC 
certifies that the final rule would not have a significant economic 
impact on a substantial number of OCC-supervised small entities.
    Board: In accordance with section 603(a) of the RFA,\37\ the Board 
published an initial regulatory flexibility analysis (IRFA) for the 
proposal.\38\ The Board solicited public comment on the effect of the 
proposal on small entities and on any significant alternatives that 
would reduce the regulatory burden on small entities. The Board did not 
receive any comment on the IRFA.
---------------------------------------------------------------------------

    \37\ 5 U.S.C. 603.
    \38\ 83 FR 58432 (November 19, 2018).
---------------------------------------------------------------------------

    The RFA requires an agency to prepare a final regulatory 
flexibility analysis (FRFA) unless the agency certifies that the rule 
will not, if promulgated, have a significant economic impact on a 
substantial number of small entities. The FRFA must contain (1) a 
statement of the need for, and objectives of, the proposed rule; (2) a 
statement of the significant issues raised by the public comments in 
response to the IRFA, a statement of the agency's assessment of such 
issues, and a statement of any changes made in the proposed rule as a 
result of such comments; (3) the response of the agency to any comments 
filed by the Chief Counsel for Advocacy of the Small Business 
Administration in response to the proposed rule, and a detailed 
statement of any changes made to the proposed rule in the final rule as 
a result of the comments; (4) a description of an estimate of the 
number of small entities to which the rule will apply or an explanation 
of why no such estimate is available; (5) a description of the 
projected reporting, recordkeeping and other compliance requirements of 
the rule, including an estimate of the classes of small entities which 
will be subject to the requirement and type of professional skills 
necessary for preparation of the report or record; and (6) a 
description of the steps the agency has taken to minimize the 
significant economic impact on small entities, including a statement 
for selecting or rejecting the other significant alternatives to the 
rule considered by the agency. In accordance with section 604 of the 
RFA, the Board has reviewed the final rule.
    Under regulations issued by the SBA, a small entity includes a 
state member bank with total assets of $550 million or less. As of June 
30, 2018, there were approximately 533 state member banks that 
qualified as small entities. The requirement set forth in Sec.  208.122 
of the Board's proposed rule requiring state member banks to file 
reports of condition applies to all state member banks, regardless of 
size. However, Sec.  208.122 does not establish a new requirement, but 
only implements in Board regulation a statutory requirement to which 
state member banks already were subject.
    Section 208.123 of the Board's final rule allows state member banks 
that qualify as covered depository institutions to file reduced 
reporting in first and third calendar quarters of the year, which 
applies to approximately 533 state member banks that qualify as

[[Page 29049]]

small entities. However, Sec.  208.123 allows but does not require 
these small state member banks to file reduced reporting. Accordingly, 
the final rule will not have a significant economic impact on a 
substantial number of small entities.
    Based on its analysis and for the reasons stated below, the Board 
believes that this final rule will not have a significant economic 
impact on a substantial number of small entities.
    1. Statement of the need for, and objectives of, the application of 
the final rule.
    As discussed in the SUPPLEMENTARY INFORMATION, section 205 of 
EGRRCPA requires the agencies to allow for a reduced reporting 
requirement for a ``covered depository institution'' when an 
institution files the first and third Call Reports for a year. The 
agencies' goal is to implement section 205 and to reduce the reporting 
burden for covered depository institutions by offering them the option 
to file the FFIEC 051 Call Report in the first and third quarters of a 
calendar year.
    In connection with the implementation of reduced reporting mandated 
by section 205, the Board is setting forth the general requirement that 
all state member banks must file consolidated reports of condition 
pursuant to its statutory authority under section 9 of the FRA and 
section7(a)(3) of the FDIA.
    2. Significant issues raised by the public comments in response to 
the IRFA, a statement of the Board's assessment of such issues, and a 
statement of any changes made in the rule as a result of such comments.
    As noted above, the Board did not receive any comments on the IRFA.
    3. Response to any comments filed by the Chief Counsel for Advocacy 
of the Small Business Administration in response to the proposed rule, 
and detailed statement of any changes made to the proposed rule in the 
final rule as a result of the comments.
    The Chief Counsel for Advocacy of the Small Business Administration 
did not file any comments in response to the proposal.
    4. Description and estimate of the number of small entities to 
which the rule will apply.
    The final rule will apply to approximately 563 state member banks, 
of which 533 state member banks have $550 million or less in total 
consolidated assets.
    5. Description of the projected reporting, recordkeeping and other 
compliance requirements of the rule, including an estimate of small 
entities which will be subject to the requirement and the type of 
professional skills necessary for preparation of the report or record.
    The final rule does not impose any new reporting, recordkeeping, or 
other compliance requirements on small state member banks. First, state 
member banks are already required to file reports of condition each 
quarter of the calendar year in accordance with the instructions of 
such reports. Second, the final rule allows small state member banks 
that qualify as covered depository institutions to reduce their 
reporting, recordkeeping, and compliance burden by filing the FFIEC 051 
Call Report, the shortest version of the Call Report, with further 
reduced reporting in the first and third calendar quarters. As a 
result, the Board expects that the final rule will reduce the reporting 
and associated recordkeeping and compliance costs for the majority of 
small state member banks.
    6. Description of the steps taken to minimize the economic impact 
on small entities, including a statement for selecting or rejecting the 
other significant alternatives to the rule considered by the agency.
    As noted, the final rule does not impose any new requirements on 
small state member banks and instead allows small state member banks 
that qualify as covered depository institutions the option to reduce 
their reporting burden. In light of the foregoing, the Board does not 
believe the final rule will have a significant economic impact on small 
state member banks.
    FDIC: The RFA requires that, in connection with a final rule, an 
agency prepare and make available for public comment a final regulatory 
flexibility analysis that describes the impact of the final rule on 
small entities.\39\ However, a regulatory flexibility analysis is not 
required if the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities, 
and publishes its certification and a short explanatory statement in 
the Federal Register together with the rule. The SBA has defined 
``small entities'' to include banking organizations with total assets 
of less than or equal to $550 million.\40\ Generally, the FDIC 
considers a significant effect to be a quantified effect in excess of 5 
percent of total annual salaries and benefits per institution, or 2.5 
percent of total noninterest expenses. The FDIC believes that effects 
in excess of these thresholds typically represent significant effects 
for FDIC-supervised institutions.
---------------------------------------------------------------------------

    \39\ 5 U.S.C. 601 et seq.
    \40\ The SBA defines a small banking organization as having $550 
million or less in assets, where ``a financial institution's assets 
are determined by averaging the assets reported on its four 
quarterly financial statements for the preceding year.'' See 13 CFR 
121.201 (as amended, effective December 2, 2014). ``SBA counts the 
receipts, employees, or other measure of size of the concern whose 
size is at issue and all of its domestic and foreign affiliates.'' 
See 13 CFR 121.103. Following these regulations, the FDIC uses a 
covered entity's affiliated and acquired assets, averaged over the 
preceding four quarters, to determine whether the covered entity is 
``small'' for the purposes of RFA.
---------------------------------------------------------------------------

    Based on December 31, 2018, Call Report data, the FDIC supervises 
3,489 insured depository institutions, of which 2,674 are considered 
small entities for the purposes of RFA. For the reasons described 
below, the FDIC certifies that the final rule will not have a 
significant economic impact on a substantial number of small entities.
    As the agencies discussed in the SUPPLEMENTARY INFORMATION section 
above, the final rule implements section 205 by defining ``covered 
depository institution'' to, among other things, expand eligibility for 
filing the FFIEC 051 Call Report to insured depository institutions 
with $1 billion or more, but less than $5 billion in total assets. 
Through a related PRA notice, the agencies are reducing the reporting 
frequency for more than 400 data items on the FFIEC 051 Call Report for 
the first and third reports of condition for a year, and to add certain 
data items to the FFIEC 051 Call Report that would apply only to 
covered depository institutions with total assets of $1 billion or 
more. Out of the additional data items, only one would be required to 
be reported every quarter, while the remaining only would be required 
semiannually or annually (i.e., in the second and fourth quarters, or 
only the fourth quarter).
    The FDIC estimates that under the revised definition of ``covered 
depository institution'' in the final rule, 295 FDIC-supervised 
depository institutions that reported total assets of $1 billion or 
more, but less than $5 billion as of June 30, 2018, could be eligible 
to file the FFIEC 051 Call Report assuming they meet the other non-
asset-size criteria under the final rule. However, because this aspect 
of the final rule only affects institutions with $1 billion or more, 
but less than $5 billion, in total assets, it will not affect any 
small, FDIC-supervised institutions.
    As the agencies discussed in the PRA section, the FDIC and the 
other agencies are reducing the reporting frequency of more than 400 
data items on the FFIEC 051 Call Report for the first and third 
calendar quarters. These data items are currently collected every 
calendar quarter on the FFIEC 051 Call Report.

[[Page 29050]]

Every covered depository institution with less than $5 billion in total 
assets that files the FFIEC 051 Call Report would experience a 
reduction in reporting burden for the first and third calendar quarters 
as a result of this final rule. The FDIC estimates that the reduction 
in reporting frequency of more than 400 data items in the FFIEC 051 
Call Reports for the first and third calendar quarters would reduce the 
average quarterly burden hours for current FFIEC 051 Call Report filers 
by 1.03 hours per institution. For the 2,158 small, FDIC-supervised 
depository institutions that filed the FFIEC 051 Call Report for the 
December 31, 2018, report date, this represents a total estimated 
burden reduction of 2,223 hours per quarter.\41\ While the reduced 
reporting could affect a substantial number of small, FDIC-supervised 
depository institutions, it would not result in a significant economic 
impact.
---------------------------------------------------------------------------

    \41\ 1.03 hours * 2,158 institutions.
---------------------------------------------------------------------------

    Based on the agencies' total estimated hourly wage rate of $117 for 
Call Report preparation, and the reduction in reporting hours resulting 
from the reduced reporting frequency of certain items in the FFIEC 051 
Call Report discussed in the PRA section, it is estimated that annual 
reporting costs could be $1,040,364 less for small, FDIC-supervised 
insured depository institutions that file the FFIEC 051 Call Report, or 
0.010 percent of total annualized noninterest expenses.\42\
---------------------------------------------------------------------------

    \42\ $117 per hour * 2,223 hours per quarter * 4 quarters per 
year. Call Report Data as of December 31, 2018.
---------------------------------------------------------------------------

    The final rule could pose some additional regulatory costs for 
small, FDIC-supervised depository institutions that file the FFIEC 051 
Call Report that are associated with changes to internal systems or 
processes. The FDIC anticipates that costs associated with either 
switching to file the FFIEC 051 Call Report (for institutions with $1 
billion or more, but less than $5 billion in total assets), or 
reprogramming for reduced reporting in the first and third calendar 
quarters, would be one-time costs (for all covered depository 
institutions). However, these costs are difficult to estimate 
accurately with available information because they depend upon the 
individual characteristics of each insured depository institution, 
their recordkeeping and reporting systems, and the decisions of senior 
management.
    Based on the information above, the FDIC certifies that the final 
rule will not have a significant economic impact, although a 
substantial number of small entities will be affected.
    In the proposal, the FDIC invited comment on all aspects of the 
supporting information provided in this RFA section but did not receive 
any comments.

C. Plain Language

    Section 722 of the Gramm-Leach-Bliley Act requires the Federal 
banking agencies to use plain language in all proposed and final rules 
published after January 1, 2000. The agencies have sought to present 
the final rule in a simple and straightforward manner, and did not 
receive any comments on the use of plain language.

D. Effective Date Under the Administrative Procedure Act and Riegle 
Community Development and Regulatory Improvement Act of 1994

    The Administrative Procedure Act (APA) requires that a final rule 
be published in the Federal Register no less than 30 days before its 
effective date unless, among other exceptions, the final rule relieves 
a restriction.
    Pursuant to section 302(a) of the Riegle Community Development and 
Regulatory Improvement Act (``RCDRIA''), in determining the effective 
date and administrative compliance requirements for a new regulation 
that imposes additional reporting, disclosure, or other requirements on 
insured depository institutions, each Federal banking agency must 
consider, consistent with principles of safety and soundness and the 
public interest, any administrative burdens that such regulations would 
place on depository institutions, including small depository 
institutions, and customers of depository institutions, as well as the 
benefits of such regulations. In addition, section 302(b) of RCDRIA 
requires new regulations and amendments to regulations that impose 
additional reporting, disclosure, or other new requirements on insured 
depository institutions generally to take effect on the first day of a 
calendar quarter that begins on or after the date on which the 
regulations are published in final form.
    The final rule reduces reporting and disclosure requirements on 
insured depository institutions. Because the final rule does not impose 
additional reporting, disclosure, or other requirements on insured 
depository institutions, section 302 of the RCDRIA does not apply. The 
agencies are adopting July 22, 2019, as the effective date so as to 
provide a minimum of 30 days under the APA.

E. OCC Unfunded Mandates Reform Act of 1995

    The OCC analyzed the final rule under the factors set forth in the 
Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under this 
analysis, the OCC considered whether the final rule includes a Federal 
mandate that may result in the expenditure by State, local, and Tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more in any one year (adjusted for inflation). The OCC 
estimates there are 120 national banks and Federal savings associations 
with total assets between $1 billion and less than $5 billion that 
would be eligible for reduced reporting under the final rule. The OCC 
estimates that each of these institutions that switches to the FFIEC 
051 could save approximately $6,000 per year. Savings may be less 
during the first year of implementation due to costs associated with 
updating systems and processes, but these costs are not expected to 
exceed the estimated savings. Therefore, the OCC has determined that 
this final rule would not result in expenditures by State, local, and 
Tribal governments, or the private sector, of $100 million or more in 
any one year. Accordingly, the OCC has not prepared a written statement 
to accompany this final rule.

List of Subjects

12 CFR Part 52

    Banks, banking, Reporting and recordkeeping requirements.

12 CFR Part 208

    Accounting, Agriculture, Banks, banking, Confidential business 
information, Consumer protection, Currency, Insurance, Investments, 
Mortgages, Reporting and recordkeeping requirements, Securities.

12 CFR Part 304

    Bank deposit insurance, Banks, banking, Freedom of information, 
Reporting and recordkeeping requirements.

OFFICE OF THE CONTROLLER OF THE CURRENCY

0
For the reasons set out in the joint preamble, the OCC is adding 12 CFR 
part 52 to read as follows:

PART 52--REGULATORY REPORTING

Sec.
52.1 Authority and purpose.
52.2 Definitions.
52.3 Reduced reporting.
52.4 Reservation of authority.

    Authority: 12 U.S.C. 93a, 161, 1463(a), 1464(v), and 
1817(a)(12).

[[Page 29051]]

Sec.  52.1  Authority and purpose.

    (a) Authority. This part is issued pursuant to 12 U.S.C. 93a, 161, 
1463(a), 1464(v), and 1817(a)(12).
    (b) Purpose. This part establishes a reduced reporting requirement 
for a covered depository institution making its reports of condition 
for the first and third calendar quarters of a year.


Sec.  52.2  Definitions.

    Covered depository institution means a national bank, Federal 
savings association, or insured Federal branch that meets the following 
criteria:
    (1) Has less than $5 billion in total consolidated assets as 
reported in its report of condition for the second calendar quarter of 
the preceding year;
    (2) Has no foreign offices, as defined in this section;
    (3) Is not required to or has not elected to use 12 CFR part 3, 
subpart E (for advanced approaches banks), to calculate its risk-based 
capital requirements;
    (4) Is not a large institution or highly complex institution, as 
such terms are defined in 12 CFR 327.8, or treated as a large 
institution, as requested under 12 CFR 327.16(f); and
    (5) Is not subject to the filing requirements for the FFIEC 002 
report of condition.
    Foreign country refers to one or more foreign nations, and includes 
the overseas territories, dependencies, and insular possessions of 
those nations and of the United States.
    Foreign office means:
    (1) A branch or consolidated subsidiary in a foreign country, 
unless the branch is located on a U.S. military facility;
    (2) An international banking facility as such term is defined in 12 
CFR 204.8;
    (3) A majority-owned Edge Act or Agreement subsidiary as defined in 
12 CFR 28.2, including both its U.S. and its foreign offices; and
    (4) For an institution chartered or headquartered in any U.S. state 
or the District of Columbia, a branch or consolidated subsidiary 
located in a U.S. territory or possession.
    Report of condition means the FFIEC 031, FFIEC 041, or FFIEC 051 
versions of the Consolidated Report of Condition and Income (Call 
Report) or the FFIEC 002 (Report of Assets and Liabilities of U.S. 
Branches and Agencies of Foreign Banks), as applicable, and as they may 
be amended or superseded from time to time in accordance with the 
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
    Total consolidated assets means total assets as reported in an 
institution's report of condition.


Sec.  52.3  Reduced reporting.

    A covered depository institution may file the FFIEC 051 version of 
the Call Report, or any successor thereto, to satisfy its requirement 
to file a report of condition for the first and third calendar quarters 
of a year.


Sec.  52.4  Reservation of authority.

    The OCC may determine that a covered depository institution shall 
not use the reduced reporting in Sec.  52.3. In making this 
determination, the OCC will consider whether the institution is 
significantly engaged in complex, specialized, or higher risk 
activities, for which a reduced reporting requirement would not provide 
sufficient information. The institution has 30 days following 
notification from the OCC to inform the OCC, in writing, of why it 
should continue to be eligible to use reduced reporting or cannot cease 
using reduced reporting in the OCC's proposed timeframe. The OCC will 
make a final decision after reviewing any response. Nothing in this 
part shall be construed to limit the OCC's authority to obtain 
information from a covered depository institution.

FEDERAL RESERVE SYSTEM

Authority and Issuance

    For the reasons set forth in the joint preamble, the Board amends 
12 CFR part 208 as follows:

PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL 
RESERVE SYSTEM (REGULATION H)

0
2. The authority citation of part 208 is revised to read as follows:

    Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a, 
371d, 461, 481-486, 601, 611, 1814, 1816, 1817(a)(3), 1817(a)(12), 
1818, 1820(d)(9), 1833(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1, 
1831w, 1831x, 1835a, 1882, 2901-2907, 3105, 3310, 3331-3351, 3905-
3909, and 5371; 15 U.S.C. 78b, 78I(b), 78l(i), 780-4(c)(5), 78q, 
78q-1, and 78w, 1681s, 1681w, 6801, and 6805; 31 U.S.C. 5318; 42 
U.S.C. 4012a, 4104a, 4104b, 4106 and 4128.


0
3. Add subpart K to part 208 to read as follows:

Subpart K--Forms, Instructions and Reports

Sec.
208.120 Authority, purpose, and scope.
208.121 Definitions.
208.122 Reporting.
208.123 Reduced reporting.
208.124 Reservation of authority.


Sec.  208.120  Authority, purpose, and scope.

    (a) Authority. This subpart is issued by the Board under section 7 
of the Federal Deposit Insurance Act, 12 U.S.C. 1817(a)(3) and (12), 
and section 9 of the Federal Reserve Act, 12 U.S.C. 324.
    (b) Purpose and scope. This subpart informs a state member bank 
where it may obtain forms and instructions for reports of conditions 
and implements 12 U.S.C. 1817(a)(12) to allow reduced reporting for a 
covered depository institution when such institution makes its reports 
of condition for the first and third calendar quarters of a year.


Sec.  208.121  Definitions.

    Covered depository institution means a state member bank that meets 
all of the following criteria:
    (1) Has less than $5 billion in total consolidated assets as 
reported in its report of condition for the second calendar quarter of 
the preceding year;
    (2) Has no foreign offices, as defined in this section;
    (3) Is not required to or has not elected to use 12 CFR part 217, 
subpart E, to calculate its risk-based capital requirements; and
    (4) Is not a large institution or highly complex institution, as 
such terms are defined in 12 CFR 327.8, or treated as a large 
institution, as requested under 12 CFR 327.16(f).
    Foreign country refers to one or more foreign nations, and includes 
the overseas territories, dependencies, and insular possessions of 
those nations and of the United States.
    Foreign office means:
    (1) A branch or consolidated subsidiary in a foreign country, 
unless the branch is located on a U.S. military facility;
    (2) An international banking facility as such term is defined in 12 
CFR 204.8;
    (3) A majority-owned Edge Act or Agreement subsidiary including 
both its U.S. and its foreign offices; and
    (4) For an institution chartered or headquartered in any U.S. state 
or the District of Columbia, a branch or consolidated subsidiary 
located in a U.S. territory or possession.
    Report of condition means the FFIEC 031, FFIEC 041, or FFIEC 051 
versions of the Consolidated Report of Condition and Income (Call 
Report) or the FFIEC 002 (Report of Assets and Liabilities of U.S. 
Branches and Agencies of Foreign Banks), as applicable, and as they may 
be amended or superseded from time to time in accordance with the 
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
    Total consolidated assets means total assets as reported in a state 
member bank's report of condition.

[[Page 29052]]

Sec.  208.122  Reporting.

    (a) A state member bank is required to file the report of condition 
(Call Report) in accordance with the instructions for these reports. 
All assets and liabilities, including contingent assets and 
liabilities, must be reported in, or otherwise taken into account in 
the preparation of, the Call Report. The Board uses Call Report data to 
monitor the condition, performance, and risk profile of individual 
state member banks and the banking industry. Reporting state member 
banks must also submit annually such information on small business and 
small farm lending as the Board may need to assess the availability of 
credit to these sectors of the economy. The report forms and 
instructions can be obtained from Federal Reserve District Banks or 
through the website of the Federal Financial Institutions Examination 
Council, http://www.ffiec.gov/.
    (b) Every insured U.S. branch of a foreign bank is required to file 
the FFIEC 002 version of the report of condition (Report of Assets and 
Liabilities of U.S. Branches and Agencies of Foreign Banks) in 
accordance with the instructions for the report. All assets and 
liabilities, including contingent assets and liabilities, must be 
reported in, or otherwise taken into account in the preparation of the 
report. The Board uses the reported data to monitor the condition, 
performance, and risk profile of individual insured branches and the 
banking industry. Insured branches must also submit annually such 
information on small business and small farm lending as the Board may 
need to assess the availability of credit to these sectors of the 
economy. The report forms and instructions can be obtained from Federal 
Reserve District Banks or through the website of the Federal Financial 
Institutions Examination Council, http://www.ffiec.gov/.


Sec.  208.123  Reduced reporting.

    A covered depository institution may file the FFIEC 051 version of 
the report of condition, or any successor thereto, which shall provide 
for reduced reporting for the reports of condition for the first and 
third calendar quarters for a year.


Sec.  208.124  Reservation of authority.

    (a) Notwithstanding Sec.  208.123, the Board in consultation with 
the applicable state chartering authority may require an otherwise 
eligible covered depository institution to file the FFIEC 041 version 
of the report of condition, or any successor thereto, based on an 
institution-specific determination. In making this determination, the 
Board may consider criteria including, but not limited to, whether the 
institution is significantly engaged in one or more complex, 
specialized, or other higher risk activities, such as those for which 
limited information is reported in the FFIEC 051 version of the report 
of condition compared to the FFIEC 041 version of the report of 
condition. Nothing in this part shall be construed to limit the Board's 
authority to obtain information from a state member bank.
    (b) Nothing in this subpart limits the authority of the Board under 
any other provision of law or regulation to take supervisory or 
enforcement action, including action to address unsafe or unsound 
practices or conditions or violations of law.

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Chapter III

Authority and Issuance

    For the reasons set forth in the preamble, the Federal Deposit 
Insurance Corporation revises 12 CFR part 304 to read as follows:

PART 304--FORMS, INSTRUCTIONS, AND REPORTS

Subpart A--In General
Sec.
304.1 Purpose.
304.2 Where to obtain forms and instructions.
304.3 Reports.
304.4-304.10 [Reserved]
Subpart B--Implementation of Reduced Reporting Requirement
304.11 Authority, purpose, and scope.
304.12 Definitions.
304.13 Reduced reporting.
304.14 Reservation of authority.

    Authority: 5 U.S.C. 552; 12 U.S.C. 1464, 1817, 1831, 1867.

Subpart A--In General


Sec.  304.1   Purpose.

    This part informs the public where it may obtain forms and 
instructions for reports, applications, and other submittals used by 
the FDIC, and also describes certain forms that are not described 
elsewhere in FDIC regulations.


Sec.  304.2   Where to obtain forms and instructions.

    Forms and instructions used in connection with applications, 
reports, and other submittals used by the FDIC can be obtained by 
contacting the FDIC Public Information Center (550 17th Street NW, 
Washington, DC 20429; telephone: (877) 275-3342 or (703) 562-2200), 
except as noted in Sec.  304.3. In addition, many forms and 
instructions can be obtained from FDIC regional offices. A list of FDIC 
regional offices can be obtained from the FDIC Public Information 
Center, or found at the FDIC's website at http://www.fdic.gov, or in 
the directory of FDIC Law, Regulations, Related Acts published by the 
FDIC.


Sec.  304.3   Reports.

    (a) Consolidated Reports of Condition and Income, Forms FFIEC 031, 
041, and 051. Pursuant to section 7(a) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(a)) and other applicable law, every insured 
depository institution is required to file Consolidated Reports of 
Condition and Income (also known as the Call Report) in accordance with 
the instructions for these reports. All assets and liabilities, 
including contingent assets and liabilities, must be reported in, or 
otherwise taken into account in the preparation of, the Call Report. 
The FDIC uses Call Report data from all insured depository institutions 
to calculate deposit insurance assessments and monitor the condition, 
performance, and risk profile of individual banks and the banking 
industry. Reporting banks must also submit annually such information on 
small business and small farm lending as the FDIC may need to assess 
the availability of credit to these sectors of the economy. The report 
forms and instructions can be obtained from the Division of Insurance 
and Research (DIR), FDIC, 550 17th Street NW, Washington, DC 20429 or 
through the website of the Federal Financial Institutions Examination 
Council, http://www.ffiec.gov/.
    (b) Report of Assets and Liabilities of U.S. Branches and Agencies 
of Foreign Banks, Form FFIEC 002. Pursuant to section 7(a) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(a)) and other applicable 
law, every insured U.S. branch of a foreign bank is required to file a 
Report of Assets and Liabilities of U.S. Branches and Agencies of 
Foreign Banks in accordance with the instructions for the report. All 
assets and liabilities, including contingent assets and liabilities, 
must be reported in, or otherwise taken into account in the preparation 
of the report. The FDIC uses the reported data to calculate deposit 
insurance assessments and monitor the condition, performance, and risk 
profile of individual insured branches and the banking industry. 
Insured branches must also submit annually such information on small

[[Page 29053]]

business and small farm lending as the FDIC may need to assess the 
availability of credit to these sectors of the economy. Because the 
Board of Governors of the Federal Reserve System collects and processes 
this report on behalf of the FDIC, the report forms and instructions 
can be obtained from Federal Reserve District Banks or through the 
website of the Federal Financial Institutions Examination Council, 
http://www.ffiec.gov/.
    (c) Summary of Deposits, Form FDIC 8020/05. Form 8020/05 is a 
report on the amount of deposits for each authorized office of an 
insured depository institution with branches; institutions with only a 
main office are exempt from reporting. Reports as of June 30 of each 
year must be submitted no later than the immediately succeeding July 
31. The report forms and the instructions for completing the reports 
will be furnished to all such institutions by, or may be obtained upon 
request from, the Division of Insurance and Research (DIR), FDIC, 550 
17th Street NW, Washington, DC 20429.
    (d) Notification of Performance of Bank Services, Form FDIC 6120/
06. Pursuant to section 7 of the Bank Service Company Act (12 U.S.C. 
1867), as amended, FDIC-supervised institutions must notify the agency 
about the existence of a service relationship within thirty days after 
the making of the contract or the performance of the service, whichever 
occurs first. Form FDIC 6120/06 may be used to satisfy the notice 
requirement. The form contains identification, location, and contact 
information for the institution, the servicer, and a description of the 
services provided. In lieu of the form, notification may be provided by 
letter. Either the form or the letter containing the notice information 
must be submitted to the regional director--Division of Risk Management 
Supervision (RMS) of the region in which the institution's main office 
is located.

    (Approved by the Office of Management and Budget under control 
numbers 3064-0052, 7100-0032, 3064-0061, and 3064-0029, 
respectively)


Sec.  Sec.  304.4-304.10  [Reserved]

Subpart B--Implementation of Reduced Reporting Requirement

     Authority: 12 U.S.C. 1464(v), 1817(a), and 1819 Tenth.


Sec.  304.11  Authority, purpose, and scope.

    (a) Authority. This subpart is issued pursuant to 12 U.S.C. 
1464(v), and section 7 (12 U.S.C. 1817(a)(12)) and section 9 (12 U.S.C. 
1819 Tenth) of the Federal Deposit Insurance Act.
    (b) Purpose. This subpart implements 12 U.S.C. 1817(a)(12) to allow 
reduced reporting for a covered depository institution when such 
institution makes its reports of condition for the first and third 
calendar quarters of a year.
    (c) Scope. This subpart applies to an insured depository 
institution, as that term is defined in section 3(c) of the Federal 
Deposit Insurance Act, 12 U.S.C. 1813(c), that meets the definition of 
a covered depository institution under Sec.  304.12.
    (d) Preservation of authority. Nothing in this subpart in any way 
limits the authority of the Corporation under other provisions of 
applicable law and regulation.


Sec.  304.12  Definitions.

    (a) Covered depository institution means an insured depository 
institution, as such term is defined in section 3 of the Federal 
Deposit Insurance Act, 12 U.S.C. 1813, for which the Corporation is the 
appropriate Federal banking agency and that meets all of the following 
criteria:
    (1) Has less than $5 billion in total consolidated assets as 
reported in its report of condition for the second calendar quarter of 
the preceding year;
    (2) Has no foreign offices, as defined in this section;
    (3) Is not required to or has not elected to use 12 CFR part 324, 
subpart E, to calculate its risk-based capital requirements;
    (4) Is not a large institution or highly complex institution, as 
such terms are defined in 12 CFR 327.8, or treated as a large 
institution, as requested under 12 CFR 327.16(f); and
    (5) Is not a state-licensed insured branch of a foreign bank, as 
such terms are defined in section 3(s) of the Federal Deposit Insurance 
Act, 12 U.S.C. 1813(s).
    (b) Foreign country refers to one or more foreign nations, and 
includes the overseas territories, dependencies, and insular 
possessions of those nations and of the United States.
    (c) Foreign office means:
    (1) A branch or consolidated subsidiary in a foreign country, 
unless the branch is located on a U.S. military facility;
    (2) An international banking facility as such term is defined in 12 
CFR 204.8;
    (3) A majority-owned Edge Act or Agreement subsidiary including 
both its U.S. and its foreign offices; and
    (4) For an institution chartered or headquartered in any U.S. state 
or the District of Columbia, a branch or consolidated subsidiary 
located in a U.S. territory or possession.
    (d) Report of condition means the FFIEC 031, FFIEC 041, or FFIEC 
051 versions of the Consolidated Report of Condition and Income (Call 
Report) or the FFIEC 002 (Report of Assets and Liabilities of U.S. 
Branches and Agencies of Foreign Banks), as applicable, and as they may 
be amended or superseded from time to time in accordance with the 
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
    (e) Total consolidated assets means total assets as reported in an 
insured depository institution's report of condition.


Sec.  304.13  Reduced reporting.

    A covered depository institution may file the FFIEC 051 version of 
the report of condition, or any successor thereto, which shall provide 
for reduced reporting for the reports of condition for the first and 
third calendar quarters for a year.


Sec.  304.14  Reservation of authority.

    Notwithstanding Sec.  304.13, the Corporation, in consultation with 
the applicable state chartering authority, may require an otherwise 
eligible covered depository institution to file the FFIEC 041 version 
of the report of condition, or any successor thereto, based on an 
institution-specific determination. In making this determination, the 
Corporation may consider criteria including, but not limited to, 
whether the institution is significantly engaged in one or more 
complex, specialized, or other higher-risk activities, such as those 
for which limited information is reported in the FFIEC 051 version of 
the report of condition compared to the FFIEC 041 version of the report 
of condition. Nothing in this part shall be construed to limit the 
Corporation's authority to obtain information from insured depository 
institutions.

    Dated: June 3, 2019.
Joseph M. Otting,
Comptroller of the Currency.
    By order of the Board of Governors of the Federal Reserve 
System, June 13, 2019.
Ann E. Misback,
Secretary of the Board.

Federal Deposit Insurance Corporation.

    By order of the Board of Directors.

    Dated at Washington, DC, on June 7, 2019.
Valerie J. Best,
Assistant Executive Secretary.
[FR Doc. 2019-12985 Filed 6-20-19; 8:45 am]
 BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P