[Federal Register Volume 86, Number 138 (Thursday, July 22, 2021)]
[Notices]
[Pages 38810-38813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15556]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Proposed Agency Information Collection Activities; Comment 
Request

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

ACTION: Joint notice and request for comment.

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SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may 
not conduct or sponsor, and the respondent is not required to respond 
to, an information collection unless it displays a currently valid 
Office of Management and Budget (OMB) control number. The Federal 
Financial Institutions Examination Council (FFIEC), of which the 
agencies are members, has approved the agencies' publication for public 
comment of a proposal to revise and extend the Consolidated Reports of 
Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC 
051), which are currently approved collections of information. The 
agencies are requesting comment on proposed changes to clarify 
instructions for reporting of deferred tax assets (DTAs) consistent 
with a proposed rule on tax allocation agreements and a new item 
related to the final rule on the standardized approach for counterparty 
credit risk.

DATES: Comments must be submitted on or before September 20, 2021.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments, which should refer to the 
``Call Report Revisions,'' will be shared among the agencies.
    OCC: You may submit comments, which should refer to ``Call Report 
Revisions,'' by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Office of the Comptroller of 
the Currency, Attention: 1557-0081, 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0081'' in your comment. In general, the OCC will publish 
comments on www.reginfo.gov without change, including any business or 
personal information provided, such as name and address information, 
email addresses, or phone numbers. Comments received, including 
attachments and other supporting materials, are part of the public 
record and subject to public disclosure. Do not include any information 
in your comment or

[[Page 38811]]

supporting materials that you consider confidential or inappropriate 
for public disclosure.
    You may review comments and other related materials that pertain to 
this information collection beginning on the date of publication of the 
second notice for this collection by the following method:
     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' link on the 
``Information Collection Review'' tab. Underneath the ``Currently under 
Review'' section heading, from the drop-down menu select ``Department 
of Treasury'' and then click ``submit.'' This information collection 
can be located by searching by OMB control number ``1557-0081.'' Upon 
finding the appropriate information collection, click on the related 
``ICR Reference Number.'' On the next screen, select ``View Supporting 
Statement and Other Documents'' and then click on the link to any 
comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.
    Board: You may submit comments, which should refer to ``Call Report 
Revisions,'' by any of the following methods:
     Agency Website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Email: [email protected]. Include ``Call 
Report Reporting Revisions'' in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available on the Board's website at https://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information.
    FDIC: You may submit comments, which should refer to ``Call Report 
Revisions,'' by any of the following methods:
     Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC's 
website.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include ``Call Report 
Revisions'' in the subject line of the message.
     Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery: Comments may be hand delivered to the guard 
station at the rear of the 550 17th Street Building (located on F 
Street) on business days between 7:00 a.m. and 5:00 p.m.
     Public Inspection: All comments received will be posted 
without change to https://www.fdic.gov/regulations/laws/federal/ 
including any personal information provided. Paper copies of public 
comments may be requested from the FDIC Public Information Center by 
telephone at (877) 275-3342 or (703) 562-2200.
    Additionally, commenters may send a copy of their comments to the 
OMB desk officers for the agencies by mail to the Office of Information 
and Regulatory Affairs, U.S. Office of Management and Budget, New 
Executive Office Building, Room 10235, 725 17th Street NW, Washington, 
DC 20503; by fax to (202) 395-6974; or by email to 
[email protected].

FOR FURTHER INFORMATION CONTACT: For further information about the 
proposed revisions to the information collections discussed in this 
notice, please contact any of the agency staff whose names appear 
below. In addition, copies of the report forms for the Call Reports can 
be obtained at the FFIEC's website (https://www.ffiec.gov/ffiec_report_forms.htm).
    OCC: Kevin Korzeniewski, Counsel, Chief Counsel's Office, (202) 
649-5490.
    Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer, 
(202) 452-3884, Office of the Chief Data Officer, Board of Governors of 
the Federal Reserve System, 20th and C Streets NW, Washington, DC 
20551. Telecommunications Device for the Deaf (TDD) users may call 
(202) 263-4869.
    FDIC: Manuel E. Cabeza, Counsel, (202) 898-3767, Legal Division, 
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, 
DC 20429.

SUPPLEMENTARY INFORMATION:

I. Report Summary

    The agencies propose to extend for three years, with revision, the 
FFIEC 031, FFIEC 041, and FFIEC 051 Call Reports.
    Report Title: Consolidated Reports of Condition and Income (Call 
Report).
    Form Number: FFIEC 031 (Consolidated Reports of Condition and 
Income for a Bank with Domestic and Foreign Offices), FFIEC 041 
(Consolidated Reports of Condition and Income for a Bank with Domestic 
Offices Only), and FFIEC 051 (Consolidated Reports of Condition and 
Income for a Bank with Domestic Offices Only and Total Assets Less Than 
$5 Billion).
    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: 1,090 national banks and federal 
savings associations.
    Estimated Average Burden per Response: 42.10 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 183,556 burden hours to file.

Board

    OMB Control No.: 7100-0036.
    Estimated Number of Respondents: 728 state member banks.
    Estimated Average Burden per Response: 45.62 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 132,845 burden hours to file.

FDIC

    OMB Control No.: 3064-0052.
    Estimated Number of Respondents: 3,209 insured state nonmember 
banks and state savings associations.
    Estimated Average Burden per Response: 40.13 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 515,109 burden hours to file.
    The estimated average burden hours collectively reflect the 
estimates for the FFIEC 031, the FFIEC 041, and the FFIEC 051 reports 
for each agency. When the estimates are calculated by type of report 
across the agencies, the estimated average burden hours per quarter are 
86.49 (FFIEC 031), 55.53 (FFIEC 041), and 35.38 (FFIEC 051). The 
changes to the FFIEC 031, FFIEC 041 and FFIEC 051 Call Report forms and 
instructions proposed in this notice would not have a material impact 
on the existing burden estimates. 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).

[[Page 38812]]

    Type of Review: Extension and revision of currently approved 
collections. In addition to the proposed revisions discussed below, 
Call Reports are periodically updated to clarify instructional guidance 
and correct grammatical and typographical errors on the forms and 
instructions, which are published on the FFIEC website.\1\ These non-
substantive updates may also be commented upon.
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    \1\ www.ffiec.gov/forms031.htm; www.ffiec.gov/forms041.htm; 
www.ffiec.gov/forms051.htm.
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Legal Basis and Need for Collections

    The Call Report information collections are mandatory: 12 U.S.C. 
161 (national banks), 12 U.S.C. 324 (state member banks), 12 U.S.C. 
1817 (insured state nonmember commercial and savings banks), and 12 
U.S.C. 1464 (federal and state savings associations). At present, 
except for selected data items and text, these information collections 
are not given confidential treatment.
    Banks and savings associations submit Call Report data to the 
agencies each quarter for the agencies' use in monitoring the 
condition, performance, and risk profile of individual institutions and 
the industry as a whole. Call Report data serve a regulatory or public 
policy purpose by assisting the agencies in fulfilling their shared 
missions of ensuring the safety and soundness of financial institutions 
and the financial system and protecting consumer financial rights, as 
well as agency-specific missions affecting national and state-chartered 
institutions, such as conducting monetary policy, ensuring financial 
stability, and administering federal deposit insurance. Call Reports 
are the source of the most current statistical data available for 
identifying areas of focus for on-site and off-site examinations. Among 
other purposes, the agencies use Call Report data in evaluating 
institutions' corporate applications, including interstate merger and 
acquisition applications for which the agencies are required by law to 
determine whether the resulting institution would control more than 10 
percent of the total amount of deposits of insured depository 
institutions in the United States. Call Report data also are used to 
calculate institutions' deposit insurance assessments and national 
banks' and federal savings associations' semiannual assessment fees.

II. Current Actions

A. Deferred Tax Items

Background
    On May 10, 2021, the agencies published a proposed rule on Tax 
Allocation Agreements (Tax NPR).\2\ The Tax NPR addresses safety and 
soundness requirements and appropriate accounting for these agreements. 
Consistent with the proposed requirements and discussion in the Tax 
NPR, the agencies propose to revise the Call Report instructions to 
clarify the Glossary entry for ``Income Taxes'' to address treatment of 
temporary difference deferred tax items and operating loss and tax 
credit carryforward deferred tax assets (DTAs).
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    \2\ 86 FR 24755 (May 10, 2021).
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Temporary Difference Deferred Tax Items
    Consistent with the separate entity basis reporting requirement, 
separating DTAs and deferred tax liabilities (DTLs) from the associated 
assets or liabilities that gave rise to the deferred tax items would 
depart from one of the primary objectives related to accounting for 
income taxes, which is to recognize deferred tax items for the future 
tax consequences of events that have been recognized in an entity's 
financial statements or tax returns.\3\ The relevant accounting 
standards specifically state that a temporary difference refers to a 
difference between the tax basis of an asset or liability and its 
reported amount in the financial statements that will result in taxable 
or deductible amounts in future years when the reported amount of the 
asset or liability is recovered or settled, respectively.\4\ More 
specifically, DTAs are the deferred tax consequences attributable to 
deductible temporary differences and carryforwards, while DTLs are the 
deferred tax consequences attributable to taxable temporary 
differences.\5\
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    \3\ Accounting Standards Codification (ASC) Topic 740 ] 740-10-
10-1 (Fin. Acct. Standards Bd. 2019).
    \4\ Id. ] 740-10-05-7.
    \5\ Id. ] 740-10-20.
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    Based on the description of deferred tax items in ASC paragraph 
740-10-05-7 and the uncertainty over the actual amounts at which 
deferred tax items will be settled or realized in future periods, 
temporary difference deferred tax items should remain on the balance 
sheet as long as the associated assets or liabilities that give rise to 
those deferred tax items remain on the balance sheet. Accordingly, an 
institution's purchase, sale, or other transfer of deferred tax items 
arising from temporary differences is not acceptable under U.S. 
generally accepted accounting principles (GAAP) unless these items are 
transferred in connection with the transfer of the associated assets or 
liabilities. In the case of timing differences, it may be appropriate 
to transfer DTAs or DTLs resulting from a timing difference when the 
underlying asset or liability that created the future tax benefit or 
obligation is being purchased, sold, or transferred within the 
consolidated group.\6\ In addition, when the DTA or DTL can be realized 
or is absorbed by the consolidated group in the current period tax 
return, it would be appropriate to settle or recover the DTA or DTL, 
respectively.\7\ Therefore, the agencies propose to revise the Glossary 
entry for ``Income Taxes'' to clarify the treatment for transfers of 
temporary difference deferred tax items as described above.
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    \6\ When an asset or liability is transferred outside the 
consolidated group, the institution would no longer recognize the 
associated DTA or DTL. The institution would include the tax 
consequences of the transaction in the calculation of its current 
period tax expense or benefit.
    \7\ Under GAAP, a deferred tax item generally becomes a current 
tax item when it is expected to be used to calculate estimated taxes 
payable or receivable on tax returns for current and prior years. 
ASC Topic 740 ] 740-10-25-2(a) (Fin. Acct. Standards Bd. 2019).
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Operating Loss and Tax Credit Carryforward DTAs
    Carryforwards are deductions or credits that cannot be utilized on 
the tax return during a year that may be carried forward to reduce 
taxable income or taxes payable in a future year.\8\ Thus, in contrast 
to temporary differences, carryforwards do not arise directly from 
book-tax basis differences associated with particular assets or 
liabilities.
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    \8\ Id. ] 740-10-20.
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    GAAP does not require a single allocation method for income taxes 
when members of a consolidated group issue separate financial 
statements.\9\ The commonly applied ``separate-return'' method, which 
would reflect DTAs for net operating losses (NOLs) and tax credit 
carryforwards on a separate return basis, would meet the relevant 
criteria.\10\ Other systematic and rational methods that are consistent 
with the broad principles established by ASC Topic 740 are also 
acceptable under GAAP.
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    \9\ See id. ] 740-10-30-27 (referring to ASC subtopic 740-10).
    \10\ Id.
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    As described in detail in Supplementary Information section of the 
Tax NPR, the agencies have determined that the derecognition by insured 
depository institutions of DTAs for NOL or tax credit carryforwards in

[[Page 38813]]

the Call Report raises significant supervisory and other concerns. 
Consistent with that determination, the agencies propose to revise the 
instructions to clarify that an institution must not derecognize DTAs 
for NOLs or tax credit carryforwards on its separate-entity regulatory 
reports prior to the time when such carryforwards are absorbed by the 
consolidated group.

B. Standardized Approach for Counterparty Credit Risk (SA-CCR)

    The agencies are proposing a revision to add a new item to the Call 
Report forms related to early or voluntary adoption of the standardized 
approach for counterparty credit risk methodology in the agencies' 
capital rules.\11\
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    \11\ 12 CFR part 3 (OCC); 12 CFR part 217 (Board); 12 CFR part 
324 (FDIC).
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Background
    On January 24, 2020, the agencies issued a final rule \12\ (SA-CCR 
final rule) that amends the regulatory capital rule to implement a new 
approach for calculating the exposure amount for derivative contracts 
for purposes of calculating the total risk-weighted assets (RWA), which 
is called SA-CCR. The final rule also incorporates SA-CCR into the 
determination of the exposure amount of derivatives for total leverage 
exposure under the supplementary leverage ratio, and the cleared 
transaction framework under the capital rule.
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    \12\ 85 FR 4362 (Jan. 24, 2020).
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    Banking institutions that are not advanced approaches institutions 
may elect to use SA-CCR to calculate standardized total RWA by 
notifying their appropriate federal supervisor.\13\ Advanced approaches 
institutions are required to use SA-CCR to calculate standardized total 
RWA starting on January 1, 2022. Advanced approaches institutions may 
adopt SA-CCR prior to January 1, 2022, but must notify their 
appropriate federal supervisor of early adoption.\14\
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    \13\ 12 CFR 3.34(a)(1)(ii) (OCC); 12 CFR 217.34(a)(1)(ii) 
(Board); 12 CFR 324.34(a)(1)(ii) (FDIC).
    \14\ 12 CFR 3.300(g) (OCC); 12 CFR 217.300(h) (Board); 12 CFR 
324.300(g) (FDIC).
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Proposed Change
    The agencies are proposing to revise Schedule RC-R, Part I, 
Regulatory Capital Components and Ratios, on all versions of the Call 
Report by adding a new line item 31.b, ``Standardized Approach for 
Counterparty Credit Risk opt-in election.'' The agencies are proposing 
to add this new item to identify institutions that have chosen to early 
adopt or voluntarily elect SA-CCR, which would allow for enhanced 
comparability of the reported derivative data and for better 
supervision of the implementation of the framework at these 
institutions. Due to the inherent complexity of adopting SA-CCR, this 
identification is particularly important for non-advanced approaches 
institutions that choose to voluntarily adopt SA-CCR.
    A non-advanced approaches institution that adopts SA-CCR would 
enter ``1'' for ``Yes'' in line item 31.b. All other non-advanced 
approaches institutions would leave this item blank. If a non-advanced 
approaches institution has elected to use SA-CCR, the institution may 
change its election only with prior approval of its appropriate federal 
regulator.\15\ An advanced approaches institution that elects to early 
adopt SA-CCR prior to the January 1, 2022, mandatory compliance date 
would enter ``1'' for ``Yes'' in line item 31.b. After January 1, 2022, 
an advanced approaches institution would leave this item blank. This 
proposed reporting change would take effect starting with the December 
31, 2021, Call Report. This item would no longer be applicable to 
advanced approaches institutions starting with the March 31, 2022, 
report date.
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    \15\ 12 CFR 3.34(a)(1)(ii) (OCC); 12 CFR 217.34(a)(1)(ii) 
(Board); 12 CFR 324.34(a)(1)(ii) (FDIC).
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III. Request for Comment

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

Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.

Board of Governors of the Federal Reserve System.
Michelle Taylor Fennell,
Deputy Associate Secretary of the Board.

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on July 13, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-15556 Filed 7-21-21; 8:45 am]
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