[Federal Register Volume 87, Number 154 (Thursday, August 11, 2022)]
[Notices]
[Pages 49647-49651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-17229]


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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

[[Page 49648]]

respondent is not required to respond to, an information collection 
unless it displays a currently valid Office of Management and Budget 
(OMB) control number. On January 20, 2022, the Federal Financial 
Institutions Examination Council (FFIEC), of which the agencies are 
members, requested public comment for 60 days on a proposal to extend 
for three years, with revision, the Country Exposure Report (FFIEC 009) 
and the Country Exposure Information Report (FFIEC 009a), which are 
currently approved collections of information. As described in the 
SUPPLEMENTARY INFORMATION section, after considering the comments 
received on the proposal, the agencies are proceeding with the proposed 
revisions to the FFIEC 009 and FFIEC 009a, but with certain 
modifications. In addition, the agencies will make clarifying revisions 
to the report form and instructions in response to comments received on 
the proposal. The agencies are giving notice that they are sending the 
collections to OMB for review. If approved by OMB, these revisions 
would take effect for the December 31, 2022, report date.

DATES: Comments must be submitted on or before September 12, 2022.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments, which should refer to the OMB 
control number(s), will be shared among the agencies.
    OCC: You may submit comments, which should refer to ``FFIEC 009 and 
FFIEC 009a,'' by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Office of the Comptroller of 
the Currency, Attention: 1557-0100, 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 
``1557-0100'' 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 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 any of the following methods:
     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu 
select ``Department of Treasury'' and then click ``submit.'' This 
information collection can be located by searching by OMB control 
number ``1557-0100'' or ``FFIEC 009 and FFIEC 009a.'' 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 ``FFIEC 009 
and FFIEC 009a,'' 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 ``FFIEC 
009 and FFIEC 009a'' 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 ``FFIEC 009 
and FFIEC 009a,'' 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 ``FFIEC 009 and FFIEC 
009a'' in the subject line of the message.
     Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3007, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery: Comments may be hand delivered to the guard 
station at the rear of the 550 17th Street Building (located on F 
Street) on business days between 7:00 a.m. and 5:00 p.m.
    Public Inspection: All comments received will be posted without 
change to https://www.fdic.gov/regulations/laws/federal/ including any 
personal information provided. Paper copies of public comments may be 
requested from the FDIC Public Information Center by telephone at (877) 
275-3342 or (703) 562-2200.
    Additionally, commenters may send a copy of their comments to the 
OMB desk 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 
information collections discussed in this notice, please contact any of 
the agency staff whose names appear below. In addition, copies of the 
FFIEC 009 and FFIEC 009a reporting forms 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. If you are hearing impaired, please dial 7-1-1 to access 
telecommunications relay services.
    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. Summary

    Report Titles: Country Exposure Report and Country Exposure 
Information Report.
    Form Numbers: FFIEC 009 and FFIEC 009a.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for profit.
OCC
    OMB Number: 1557-0100.

[[Page 49649]]

    Estimated Number of Respondents: 10 (FFIEC 009), 4 (FFIEC 009a).
    Estimated Average Time per Response: 135 hours (FFIEC 009), 6.5 
hours (FFIEC 009a).
    Estimated Total Annual Burden: 5,400 hours (FFIEC 009), 104 hours 
(FFIEC 009a).
Board
    OMB Number: 7100-0035.
    Estimated Number of Respondents: 49 (FFIEC 009), 37 (FFIEC 009a).
    Estimated Average Time per Response: 135 hours (FFIEC 009), 6.5 
hours (FFIEC 009a).
    Estimated Total Annual Burden: 26,460 hours (FFIEC 009), 962 hours 
(FFIEC 009a).
FDIC
    OMB Number: 3064-0017.
    Estimated Number of Respondents: 13 (FFIEC 009), 10 (FFIEC 009a).
    Estimated Average Time per Response: 135 hours (FFIEC 009), 6.5 
hours (FFIEC 009a).
    Estimated Total Annual Burden: 7,020 hours (FFIEC 009), 260 hours 
(FFIEC 009a).

General Description of Reports

    The Country Exposure Report (FFIEC 009) is filed quarterly with the 
agencies and provides information on international claims of U.S. 
banks, savings associations, Edge and/or Agreement corporations, bank 
holding companies, savings and loan holding companies, and U.S. 
intermediate holding companies of foreign banking organizations 
(collectively, U.S. banking organizations) that is used for supervisory 
and analytical purposes. The information is used to monitor the foreign 
country exposures of reporting institutions to determine the degree of 
risk in their portfolios and assess the potential risk of loss. The 
Country Exposure Information Report (FFIEC 009a) is a supplement to the 
FFIEC 009 and provides publicly available information on material 
foreign country exposures (i.e., all exposures to a foreign country in 
excess of 1 percent of total assets or 20 percent of total capital, 
whichever is less) of U.S. banking organizations that file the FFIEC 
009 report. As part of the FFIEC 009a, reporting institutions also must 
furnish a list of countries in which they have lending exposures above 
0.75 percent of total assets or 15 percent of total capital, whichever 
is less.

Legal Basis and Need for Collection

    These information collections are mandatory under the following 
statutes: 12 U.S.C. 161 and 1817 (national banks), 12 U.S.C. 1464 
(federal savings associations), 12 U.S.C. 248(a)(1) and (2), 1844(c), 
and 3906 (state member banks and bank holding companies); 12 U.S.C. 
1467a(b)(2)(A) (savings and loan holding companies); 12 U.S.C. 5365(a) 
(intermediate holding companies); and 12 U.S.C. 1817 and 1820 (insured 
state nonmember commercial and savings banks and insured state savings 
associations). The FFIEC 009 information collection is given 
confidential treatment (5 U.S.C. 552(b)(4) and (b)(8)). The FFIEC 009a 
information collection is not given confidential treatment.

II. Current Actions

    On January 20, 2022, the agencies requested public comment to 
extend for three years, with revision, the FFIEC 009 and FFIEC 009a. 
The comment period closed on March 21, 2022. The agencies received one 
comment letter from a banking trade association. The commenter 
requested clarification of certain aspects of the proposed FFIEC 009 
and FFIEC 009a reporting forms and instructions. The specific comments 
and the agencies' responses follow.
    First, the commenter noted that the proposed change to the naming 
of headers for Columns 13 through 17 and 18 through 22 of Schedule C, 
Part I, which the agencies stated would be a nonsubstantive change, 
could imply that the risk transfers reported on the FFIEC 009 would be 
limited to only those with guarantors in countries other than that of 
the immediate counterparty, but would no longer include risk transfers 
between different sectors within the same country. The commenter 
recommended renaming the headers to include both other sectors and 
other jurisdictions to ensure there would be no substantive change in 
reporting. The agencies agree with the commenter's recommendation and 
have revised the headers accordingly. In connection with the proposed 
changes to the FFIEC 009 and FFIEC 009a, it was the agencies' intent 
that risk transfers continue to be reported according to existing 
reporting practices and in line with the instructions.
    Second, the commenter asked for clarification on whether claims 
where cash collateral is provided should be included in Column 18 of 
Schedule C, Part II. Furthermore, the commenter stated that the use of 
``collateral'' with respect to Column 18 seemed out of place and not 
parallel to the instructions for Column 17. In response to the comment, 
the agencies have combined the instructions for Columns 17 and 18 to 
emphasize that the same claims are to be reported, but the risk is to 
be assigned by different criteria. Furthermore, the revised 
instructions state that cash held as collateral should not be reported 
in these columns.
    Third, with regard to Schedule C, Part II, columns, 13 through 18, 
the commenter asked for clarification on the reporting of collateral 
held against claims where risk transfer occurs because the guarantor is 
located in a different country, or is from a different sector than the 
immediate counterparty even though collateral held against the claim 
does not meet the definition of collateral for risk transfer. This 
would occur in an overnight resale agreement, collateralized by 
securities, with a foreign branch of a bank that is headquartered in a 
third country. In response to the comment, the agencies have amended 
the instructions to clarify that collateral held against claims that 
are subject to risk transfer does not need to be reported in columns 13 
through 18 of Schedule C, Part II.
    Fourth, the commenter requested clarification on the reporting 
basis for Columns 1 and 2 of Schedule L, as the agencies proposed to 
rename the reporting basis for these columns in Appendix A of the 
instructions but did not propose to change the substantive 
instructions. The commenter proposed to amend the instructions for 
these columns to state that deposits of a foreign branch are assumed to 
be liabilities of the branch unless they are explicitly guaranteed 
outside of the country where the branch is located. This represents a 
change from the current instructions, which refer to deposits that are 
redeemable elsewhere (rather than guaranteed elsewhere). The agencies 
consider the modification as originally proposed to be a change in name 
rather than a substantive alteration. The agencies note that there was 
no change in the instructions for Columns 1 and 2 of Schedule L from 
the 2019 version and the proposed amendment is out of scope for the 
current revision. Accordingly, the agencies have decided not to change 
the corresponding instructions as recommended by the commenter. 
However, after further consideration and in the interest of clarity, 
the agencies are revising the form to leave blank the ``Reporting 
Basis'' entry in Appendix A (rightmost column) in the row addressing 
Columns 1 and 2 of Schedule L (which was originally proposed to be 
``Guarantor Basis''). This change provides a useful clarification 
because the location is that of the foreign office, not the 
counterparty, and thus neither Immediate-Counterparty nor Guarantor 
Basis is applicable. Furthermore, as established in section

[[Page 49650]]

II.C of the FFIEC 009 general instructions, the Immediate-Counterparty 
versus Guarantor Basis distinction is to be reported only for claims 
and not for liabilities.
    Fifth, the commenter noted that the draft reporting instructions 
for Column 2 of the FFIEC 009a report instruct firms to report the sum 
of Columns 6 through 10 from Schedule C, Part I, of the FFIEC 009 
report,'' which are ``Claims on Local Residents in Non-Local 
Currency.'' However, the proposal does not provide an indication in the 
heading for Column 2 of the FFIEC 009a that the data reported in the 
column should be limited to only claims on local residents in non-local 
currency, nor is there any reference in the draft instructions for the 
reporting of claims on local residents in local currency. The commenter 
recommended the agencies clarify whether the data in Column 2 should 
include claims on local residents in both local and non-local 
currencies and subsequently modify the heading for Column 2 to clearly 
specify what is to be captured.
    The commenter also stated if the intention for new Columns 1 and 2 
of the FFIEC 009a is to collect data on the total claims by the 
immediate counterparty and as a result should reflect the claims in 
both local and non-local currencies, the agencies should clarify the 
reporting instructions for Column 2 to reference Column 12 from 
Schedule C, Part I of the FFIEC 009 to incorporate claims on local 
residents in local currency. The agencies agree both new Columns 1 and 
2 of the FFIEC 009a should reflect total claims by immediate 
counterparty and Column 2 should include claims that are reflected in 
column 12, Schedule C, Part 1 of the FFIEC 009, in addition to those 
reflected in columns 6 through 12. Therefore, the agencies agree with 
the commenter's recommendation to include a reference to Column 12 from 
Schedule C, Part I of the FFIEC 009 in the FFIEC 009a instructions for 
Column 2 and will modify the heading for Column 2 on the FFIEC 009a 
report form to specify what is included.
    Sixth, the commenter noted that Schedule D of the FFIEC 009 
collects information on the fair value of derivative contracts, and the 
headers for new Column 1 ``Amount of Cross-border Claims Outstanding'' 
and Column 2 ``Amount of Foreign Office Claims on Local Residents'' of 
the FFIEC 009a explicitly indicate that firms should exclude derivative 
products. The commenter pointed out that referencing Schedule D in the 
instructions for new Columns 8 through 11 of the FFIEC 009a created an 
inconsistency and recommended removing the references to Schedule D 
from the instructions of Columns 8 through 11. The agencies note that 
the amounts in Columns 8 through 11, which are reported on an immediate 
counterparty basis, correspond to the cross-sectoral aggregated amounts 
in Columns 1 and 2 which are not intended to include derivatives. 
Therefore, the agencies agree with the commenter's recommendation to 
remove the references to Schedule D of the FFIEC 009 and will modify 
the instructions accordingly.
    Seventh, the commenter noted an inconsistency in the proposed FFIEC 
009a instructions for Column 3 ``Amount of Cross-border Claims 
Outstanding After Mandated Adjustments for Transfer of Exposure 
(excluding derivative products)'' (existing Column 1), Column 4 
``Amount of Foreign Office Claims on Local Residents (excluding 
derivative products)'' (existing Column 2) and Columns 12 through 15 
(existing Columns 6 through 9), which redistribute the same amounts 
reported in Columns 3 and 4. The commenter noted that there is a 
conflict because, by including references to FFIEC 009 Schedule D, the 
instructions imply that Columns 12 through 15 include derivative 
products, while derivatives are explicitly excluded from Columns 3 and 
4. The commenter recommended that the agencies revise the reporting 
instructions for Columns 12 through 15 to remove the references to the 
FFIEC 009, Schedule D thereby removing derivatives from the reporting 
of guarantor basis claims in the sector breakdown of Columns 12 through 
15. The agencies agree there is an inconsistency, Columns 3 and 4 
correctly exclude derivatives, whereas Columns 12 through 15 are 
intended to include derivatives. Derivatives are listed in Column 5 and 
included in Column 6, total claims on a guarantor basis, which is the 
sum of Columns 3, 4, and 5. Therefore, the agencies will revise the 
column headers and the instructions for Columns 12 through 17 of the 
FFIEC 009a to reference the total in Column 6 and note derivative 
products are to be included. Therefore, Columns 12 through 15 will 
include derivatives and retain the references to Schedule D of the 
FFIEC 009.
    Eighth, the commenter noted that, given the changes to the FFIEC 
009 and the renumbering of columns, the instructions for the new Column 
24 (currently Column 18) of the FFIEC 009a ``Of Which, Resale 
Agreements and Securities Lending (Counterparty)'' incorrectly 
references FFIEC 009 Schedule C, Part II, Column 16. Additionally, the 
commenter noted that the column header for Column 24 does not include 
``Reverse Repurchase Agreements'' which is inconsistent with the column 
headers of Columns 17 and 18 on the FFIEC 009, Schedule C, Part II, 
which are ``Of Which, Resale and Reverse Repurchase Agreements and 
Securities Lending (Counterparty)'' and ``Of Which, Resale and Reverse 
Repurchase Agreements and Securities Lending (Collateral),'' 
respectively. Therefore, the commenter recommended that the agencies 
revise the reporting instructions for Column 24 of the FFIEC 009a to 
reference Column 17 of Schedule C, Part II of the FFIEC 009 and revise 
the header for Column 24 of the FFIEC 009a, to read ``Of Which, Resale 
and Reverse Repurchase Agreements and Securities Lending 
(Counterparty),'' to be consistent with the headers in the 
corresponding columns of the FFIEC 009. The agencies agree with the 
commenter and will revise the instructions and headers accordingly.
    Lastly, the commenter expressed a concern that there is potentially 
conflicting guidance regarding CUSIP netting practices in the FFIEC 
009. Specifically, the commenter noted that the agencies had provided 
one method for netting in a Frequently Asked Question issued in 
September 2015, while a different method was described in informal 
guidance during a 2016 regulatory reporting seminar conducted by one of 
the agencies. In 2019, the agencies received a related comment on 
whether CUSIP netting in the FFIEC 009 should follow U.S. GAAP. In 
response to that comment, the agencies clarified that CUSIP netting 
should not follow U.S. GAAP and reiterated that the current FFIEC 009 
instructions (incorporating the method described in September 2015) is 
the correct method for CUSIP netting in the FFIEC 009.\1\ The agencies 
continue to confirm that only the CUSIP netting method described in the 
FFIEC 009 instructions is appropriate.
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    \1\ See 84 FR 47340, 47342 (September 9, 2019).
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III. Request for Comment

    Public comment is requested on all aspects of this notice. Comment 
is also specifically invited on:
    (a) Whether the information collections 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, including the

[[Page 49651]]

validity of the methodology and assumptions used;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    Comments submitted in response to this joint notice will be shared 
among the agencies. All comments will become a matter of public record.

Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
Margaret McCloskey Shanks,
Deputy Secretary of the Board. Board of Governors of the Federal 
Reserve System. Federal Deposit Insurance Corporation.
    Dated at Washington, DC, on August 4, 2022.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2022-17229 Filed 8-10-22; 8:45 am]
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