[Federal Register Volume 89, Number 100 (Wednesday, May 22, 2024)]
[Notices]
[Pages 45046-45052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11221]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of

[[Page 45047]]

Governors of the Federal Reserve System (Board); and Federal Deposit 
Insurance Corporation (FDIC).

ACTION: Joint notice and request for comment.

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SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may 
not conduct or sponsor, and a respondent is not required to respond to, 
an information collection unless it displays a currently valid Office 
of Management and Budget (OMB) control number. On September 28, 2023, 
and on December 27, 2023, the agencies, under the auspices of the 
federal Financial Institutions Examination Council (FFIEC), requested 
public comment for 60 days on each of two proposals (respectively, the 
September 2023 notice and the December 2023 notice) to revise and 
extend the Consolidated Reports of Condition and Income (Call Report) 
(FFIEC 031, FFIEC 041, and FFIEC 051), which are currently approved 
collections of information. Included in these notices, the Board, under 
the auspices of the FFIEC, requested public comment for 60 days on each 
of two proposals to revise and extend the Report of Assets and 
Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002) 
and the Report of Assets and Liabilities of a Non-U.S. Branch that is 
Managed or Controlled by a U.S. Branch or Agency of a Foreign (Non-
U.S.) Bank (FFIEC 002S), which also are currently approved collections 
of information. The September 2023 notice proposed revisions to the 
Call Report and the FFIEC 002 that relate to the Financial Accounting 
Standards Board's (FASB) Accounting Standards Update (ASU) 2022-02, 
``Financial Instruments--Credit Losses (Topic 326): Troubled Debt 
Restructurings and Vintage Disclosures'' (ASU 2022-02); reporting of 
past due loans; and reporting of internet website addresses of 
depository institution trade names. The December 2023 notice proposed 
revisions to the Call Report and the FFIEC 002 that included the 
revision and addition of certain new data items related to the 
reporting of loans to nondepository financial institutions (NDFIs) and 
other loans; guaranteed structured financial products; and proposed 
long-term debt requirements. In addition, the December 2023 notice 
included a proposal to adopt ongoing standards for electronic 
signatures to comply with the Call Report signature and attestation 
requirement. The agencies are finalizing certain aspects of these two 
proposals as described in this notice.

DATES: Comments must be submitted on or before June 21, 2024.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments will be shared among the 
agencies.
    OCC: You may submit comments, which should refer to ``Call Report 
and FFIEC 002 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 
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. 
Hover over the ``Information Collection Review'' tab and click on 
``Information Collection Review.'' Underneath the ``Currently under 
Review'' section heading, from the drop-down menu select ``Department 
of the 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 
and FFIEC 002 Revisions,'' by any of the following methods:
     Agency Website: https://www.federalreserve.gov. Follow the 
instructions for submitting comments at: https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Email: [email protected]. Include ``Call 
Report and FFIEC 002 Revisions'' in the subject line of the message.
     Fax: (202) 395-6974.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    In general, all public comments will be made available on the 
Board's website at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, and will not be modified to remove 
confidential, contact or any identifiable information.
    FDIC: You may submit comments, which should refer to ``Call Report 
and FFIEC 002 Revisions,'' by any of the following methods:
     Agency Website: https://www.fdic.gov/resources/regulations/federal-register-publications/. Follow the instructions for 
submitting comments on the FDIC's website.
     Email: [email protected]. Include ``Call Report (FFIEC 
002) 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 NW building (located on F 
Street NW) on business days between 7 a.m. and 5 p.m.
     Public Inspection: All comments received will be posted 
without change to https://www.fdic.gov/resources/regulations/federal-register-publications/, including any personal information provided. 
Paper copies of public comments may be requested from the FDIC Public 
Information Center by telephone at (877) 275-3342 or (703) 562-2200.
    Additionally, commenters may send a copy of their comments to the 
OMB desk officer for the agencies by mail to the Office of Information 
and Regulatory Affairs, U.S. Office of Management and Budget, New 
Executive Office Building, Room 10235, 725 17th Street NW, Washington, 
DC 20503; by fax to (202) 395-6974; or by email to 
[email protected].

FOR FURTHER INFORMATION CONTACT: For further information about the 
proposed revisions to the information collections

[[Page 45048]]

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 Report 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 deaf, hard of hearing, or have a speech 
disability, 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. For users of telephone systems via text telephone (TTY) or any 
TTY-based Telecommunications Relay Services (TRS), please call 711 from 
any telephone, anywhere in the United States.
    FDIC: Manuel E. Cabeza, Counsel, (202) 898-3767, Legal Division, 
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, 
DC 20429.

SUPPLEMENTARY INFORMATION: The comment period for the September 2023 
notice ended on November 27, 2023. After considering the comments 
received on the proposal, the FFIEC and the agencies are proceeding 
with certain of the proposed revisions related to ASU 2022-02, with 
modifications as discussed further in section II.B, ``Proposed Changes 
and Comments Received: September 2023 Notice''. The revisions replace, 
as appropriate, references to ``troubled debt restructurings'' with 
``modifications to borrowers experiencing financial difficulty'' in the 
Call Report forms and instructions, including updates to the Glossary, 
to reflect the change in accounting for modifications to borrowers 
experiencing financial difficulty. These revisions would take effect 
for the June 30, 2024, report date, rather than as of the March 31, 
2024, report date, as originally proposed. Similar revisions to the 
FFIEC 002 forms and instructions also would be effective June 30, 2024. 
The agencies are continuing to review the revisions related to the 
length of time that loan modifications to borrowers experiencing 
financial difficulty would be reported in the Call Report and FFIEC 002 
forms as well as the reporting of past due loans. The agencies are 
moving forward with revisions to the reporting of internet website 
addresses of depository institution trade names that will be effective 
as of the June 30, 2024, report date.
    The comment period for the December 2023 notice ended on February 
26, 2024. After considering the comments received on this proposal, the 
FFIEC and the agencies are proceeding with the revision and addition of 
certain new data items related to the reporting of loans to NDFIs and 
other loans, with certain modifications, as discussed further in 
section II.C, ``Proposed Changes and Comments Received: December 2023 
Notice''. These revisions to the Call Report and the FFIEC 002 would be 
effective as of the December 31, 2024, report date, rather than as of 
the June 30, 2024, report date, as originally proposed. In addition, 
the agencies are revising the Call Report for the proposed changes to 
Schedule RC-B, Securities, related to the reporting of guaranteed 
structured financial products, as proposed, effective as of the 
December 31, 2024, report date, rather than as of the June 30, 2024, 
report date, as originally proposed. The agencies are continuing to 
consider the comments received on the proposed revisions related to the 
long-term debt requirements. Finally, the agencies are moving forward 
with the proposal to adopt ongoing standards for electronic signatures 
to comply with the Call Report signature and attestation requirement, 
as proposed, with a June 30, 2024, effective date.
    The agencies hereby give notice of their plan to submit to OMB a 
request to approve the revision and extension of these information 
collections, and again invite comment on the renewal.

Table of Contents

IV. Report Summary
    A. Call Report
    B. FFIEC 002 and FFIEC 002S
II. Current Actions
    B. Background
    C. Proposed Changes and Comments Received: September 2023 Notice
    1. ASU 2022-02, ``Financial Instruments--Credit Losses (Topic 
326): Troubled Debt Restructurings and Vintage Disclosures''
    2. Past Due Definition
    3. Depository Institution Trade Names and Deposit Accepting URLs
    4. Other Comments Received
    D. Proposed Changes and Comments Received: December 2023 Notice
    1. Loans to NDFIs and Other Loans
    2. Guaranteed Structured Financial Products
    3. Long-Term Debt Requirements
    4. Electronic Signatures
III. Timing
IV. Request for Comment

I. Report Summary

A. Call Report

    The agencies propose to extend for three years, with revision, 
their information collections associated with 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: 1,004 national banks and federal 
savings associations.
    Estimated Average Burden per Response: 41.41 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 166,303 burden hours to file.
Board
    OMB Control No.: 7100-0036.
    Estimated Number of Respondents: 707 state member banks.
    Estimated Average Burden per Response: 45.23 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 127,910 burden hours to file.
FDIC
    OMB Control No.: 3064-0052.
    Estimated Number of Respondents: 2,929 insured state nonmember 
banks and state savings associations.
    Estimated Average Burden per Response: 39.43 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 461,962 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 
86.12 (FFIEC 031), 55.56 (FFIEC 041), and 34.99 (FFIEC 051). These 
estimates represent an increase of 1.59 hours (FFIEC 031), 0.96 (FFIEC 
041) and 0.58 hours (FFIEC 051) per quarter compared with the prior 
estimates approved by OMB. The changes are due to the revisions 
proposed in this notice, change in the number of institutions filing 
each type of report, and change to the amount of

[[Page 45049]]

data items reported in each report. 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).
    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 federal 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 the risk-based assessments for insured depository 
institutions.

B. FFIEC 002 and 002S

    The Board proposes to extend for three years, with revision, the 
FFIEC 002 and FFIEC 002S reports.
    Report Titles: Report of Assets and Liabilities of U.S. Branches 
and Agencies of Foreign Banks; Report of Assets and Liabilities of a 
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or 
Agency of a Foreign (Non-U.S.) Bank.
    Form Numbers: FFIEC 002; FFIEC 002S.
    OMB Control Number: 7100-0032.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Respondents: All state-chartered or federally-licensed U.S. 
branches and agencies of foreign banking organizations, and all non-
U.S. branches managed or controlled by a U.S. branch or agency of a 
foreign banking organization.
    Estimated Number of Respondents: FFIEC 002--183; FFIEC 002S--16.
    Estimated Average Burden per Response: FFIEC 002--24.67 hours; 
FFIEC 002S--6.0 hours.
    Estimated Total Annual Burden: FFIEC 002--18,058 hours; FFIEC 
002S--384 hours.
    Type of Review: Extension and revision of currently approved 
collections.
    The proposed revisions to the FFIEC 002 instructions in this notice 
would not have a material impact on the existing burden estimates.
Legal Basis and Need for Collection
    On a quarterly basis, all U.S. branches and agencies of foreign 
banks are required to file the FFIEC 002, which is a detailed report of 
condition with a variety of supporting schedules. This information is 
used to fulfill the supervisory and regulatory requirements of the 
International Banking Act of 1978. The data also are used to augment 
the bank credit, loan, and deposit information needed for monetary 
policy and other public policy purposes. In addition, FFIEC 002 data 
are used to calculate the risk-based assessments for FDIC-insured U.S. 
branches of foreign banks. The FFIEC 002S is a supplement to the FFIEC 
002 that collects information on assets and liabilities of any non-U.S. 
branch that is managed or controlled by a U.S. branch or agency of the 
foreign bank. A non-U.S. branch is managed or controlled by a U.S. 
branch or agency if a majority of the responsibility for business 
decisions, including but not limited to decisions with regard to 
lending or asset management or funding or liability management, or the 
responsibility for recordkeeping in respect of assets or liabilities 
for that foreign branch resides at the U.S. branch or agency. A 
separate FFIEC 002S must be completed for each managed or controlled 
non-U.S. branch. The FFIEC 002S must be filed quarterly along with the 
U.S. branch or agency's FFIEC 002.
    These information collections are mandatory (12 U.S.C. 3105(c)(2), 
1817(a)(1) and (3), and 3102(b)). Except for select sensitive items, 
the FFIEC 002 is not given confidential treatment; the FFIEC 002S is 
given confidential treatment pursuant to 5 U.S.C. 552(b)(4) and (8). 
The data from both reports are used for (1) monitoring deposit and 
credit transactions of U.S. residents; (2) monitoring the impact of 
policy changes; (3) analyzing structural issues concerning foreign bank 
activity in U.S. markets; (4) understanding flows of banking funds and 
indebtedness of developing countries in connection with data collected 
by the International Monetary Fund and the Bank for International 
Settlements that are used in economic analysis; and (5) assisting in 
the supervision of U.S. offices of foreign banks. The Federal Reserve 
System collects and processes these reports on behalf of all three 
agencies.

II. Current Actions

A. Background

    In the September 2023 notice,\2\ the agencies proposed revisions to 
all three versions of the Call Report (FFIEC 031, FFIEC 041 and FFIEC 
051), and the Board proposed revisions, as applicable, to the FFIEC 002 
related to FASB's ASU 2022-02, reporting on past due loans and 
reporting on internet website addresses of depository institution trade 
names. The comment period for the September 2023 notice ended on 
November 27, 2023. The agencies received six comment letters on the 
September 2023 notice.
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    \2\ 88 FR 66933 (Sept. 28, 2023).
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    In the December 2023 notice,\3\ the agencies proposed revisions to 
all three versions of the Call Report (FFIEC 031, FFIEC 041 and FFIEC 
051), and the Board proposed revisions, as applicable, to the FFIEC 002 
that included the revision and addition of certain new data items 
related to the reporting of loans to NDFIs and other loans, guaranteed 
structured financial products, and proposed long-term debt 
requirements. In addition, this proposal

[[Page 45050]]

included a proposal to adopt ongoing standards for electronic 
signatures to comply with the Call Report signature and attestation 
requirement. The comment period for the December 2023 notice ended on 
February 26, 2024. The agencies received thirty-nine comment letters on 
the December notice.
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    \3\ 88 FR 89489 (Dec. 27, 2023).
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B. Proposed Changes and Comments Received: September 2023 Notice

1. ASU 2022-02, ``Financial Instruments--Credit Losses (Topic 326): 
Troubled Debt Restructurings and Vintage Disclosures''
    In response to FASB's issuance of ASU 2022-02 on March 31, 2022, 
the agencies proposed revisions to line items and related instructions 
that are impacted by this new standard. In general, these revisions 
eliminate reporting of troubled debt restructurings and align the data 
collected in the Call Report forms and instructions with the definition 
of loan modifications to borrowers experiencing financial difficulty 
that is used in U.S. generally accepted accounting principles (GAAP). 
The banking agencies are replacing, as appropriate, references to 
``loans restructured in troubled debt restructurings'' with ``loan 
modifications to borrowers experiencing financial difficulty'' in the 
Call Report forms and instructions and are updating the Glossary to 
reflect the change in accounting for modifications to borrowers 
experiencing financial difficulty. The agencies are also updating the 
General Instructions, Schedule RC-C, Loans and Lease Financing 
Receivables, Schedule RC-M, Memoranda, Schedule RC-N, Past Due and 
Nonaccrual Loans, Leases and Other Assets, and Schedule RC-O, Other 
Data for Deposit Insurance Assessments, to reflect these changes. 
Additional detail about the specific line items impacted is included in 
the September 2023 notice.
    No commenters objected to the adoption in the Call Report and FFIEC 
002 of the revised GAAP terminology or to the change in accounting for 
modifications to borrowers experiencing financial difficulty. These 
updates to the Call Report and FFIEC 002 report forms and instructions 
will be effective as of the June 30, 2024, report date.
    The September 2023 proposal also included instruction revisions 
related to the length of time for reporting modifications. Four 
commenters objected to the length of time for which these modifications 
would be reported on the Call Report. As proposed, institutions would 
report these modifications for a minimum period of 12 months after 
modification and until an institution performs a current, well 
documented credit evaluation to support that the borrower is no longer 
experiencing financial difficulty, unless the loan is paid off, 
charged-off, sold, or otherwise settled, which may be for a period 
longer than disclosures required by ASU 2022-02. ASU 2022-02 requires 
financial statement disclosures on loan modifications to borrowers 
experiencing financial difficulty made ``within the previous 12 months 
preceding the payment default when the debtor was experiencing 
financial difficulty at the time of the modification.'' \4\ These 
commenters indicated that the divergence from GAAP disclosure 
requirements in accordance with ASU 2022-02 would create additional 
costs, complexity and operational challenges without any substantial 
corresponding benefit to either the institutions or the agencies.
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    \4\ See ASC 310-10-50-44.
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    The agencies are continuing to evaluate these comments. 
Institutions should continue to reference the quarterly Supplemental 
Instructions regarding reporting these modifications on the Call 
Report. Upon the conclusion of their review, the agencies will adopt a 
standard through a subsequent Paperwork Reduction Act notice with a 
public comment period and provide adequate lead time for implementation 
of that standard.
2. Past Due Definition
    In the September 2023 notice, the agencies had proposed changes to 
clarify the definition used to report loans as ``past due'' on Schedule 
RC-N, Past Due and Nonaccrual Loans, Leases, and Other Assets. The 
agencies received two comments on this clarification. Both comments 
sought additional clarification on treatment of loans in various 
programs, such as loans in forbearance or loans on payment deferrals. 
After taking these comments into consideration, the agencies have 
deferred any proposed changes in order to conduct further review. Upon 
the conclusion of their review, the agencies will propose any 
additional revisions for public comment consistent with the Paperwork 
Reduction Act.
3. Depository Institution Trade Names and Deposit Accepting URLs
    In the September 2023 notice, the agencies had proposed to clarify 
the instructions for Schedule RC-M, Memoranda, items 8.a. through 8.c., 
which collect information on institutions' websites and trade names, 
particularly those used to solicit deposits. In addition, the agencies 
proposed to increase the frequency of reporting of these items on the 
FFIEC 051 from semi-annually to quarterly. No comments were received on 
this clarification and revision. The agencies are moving forward with 
these changes effective as of the June 30, 2024, report date.
4. Other Comments Received
    The agencies also received recommendations from one commenter on 
the Call Report and other FFIEC reports that were not specifically 
related to any of the proposed changes from the September 2023 notice. 
These recommendations were related to FASB's Accounting Standards 
Codification (ASC) Topic 326, Financial Instruments--Credit Losses 
(Topic 326) and ASU No. 2016-02, Leases (Topic 842). The proposed 
changes on ASC Topic 326 and ASC Topic 842 were related to the proposed 
changes in the notices published in February 2019 \5\ and January 
2020,\6\ respectively.
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    \5\ 84 FR 4131 (Feb. 14, 2019).
    \6\ 85 FR 4780 (Jan. 27, 2020).
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    As of the December 31, 2023, report date, all institutions were 
required to adopt these standards. As such, the commenter requested the 
agencies update or remove outdated references related to the transition 
period for these standards from the Call Report and the FFIEC 002 
report forms and instructions. The agencies had planned to incorporate 
and have incorporated these changes to the Call Report and FFIEC 002 as 
nonsubstantive revisions as of the March 31, 2024, report date, which 
aligns with the commenter's request.
    The recommendations also included similar updates related to ASC 
Topic 326 to be made to the Foreign Branch Report of Condition (FFIEC 
030) and the Abbreviated Foreign Branch Report of Condition (FFIEC 
030S), which are not in the scope of this proposal. These changes also 
are considered nonsubstantive and technical in nature, and the agencies 
had planned to update the FFIEC 030 and FFIEC 030S report forms and 
instructions, as of the March 31, 2024, report date. The agencies have 
made these changes as of the March 31, 2024, report date, which is 
consistent with the commenter's request.

C. Proposed Changes and Comments Received: December 2023 Notice

1. Loans to NDFIs and Other Loans
    In the December 2023 notice, the agencies proposed to update the 
Call Report and FFIEC 002 report forms and instructions to increase the 
granularity

[[Page 45051]]

in reporting exposure to NDFIs and to improve reporting consistency. 
These revisions would enhance the understanding of NDFI exposure, 
risks, and performance trends. The revisions would group together loan 
exposures that exhibit similar underlying risk characteristics while 
addressing the diversity in practice on the reporting of these loans 
that exists today. In addition, the granular reporting allows for more 
accurate analysis of bank financial statements for applicable 
institutions and performance metrics. These revisions and 
clarifications were proposed to be effective as of the June 30, 2024, 
report date.
    The agencies received comments from four trade groups and thirty-
two individuals. These comments generally supported the proposed new 
line items. There were four commenters that requested additional 
instructions on how to report certain types of NDFIs. Two commenters 
highlighted the need to ensure consistency in reporting these types of 
financial assets across other regulatory reports, both in the level of 
disaggregation and by definition. Thirty-one commenters indicated this 
proposal is a good starting point, but consideration of further 
disaggregation could be necessary for users outside the agencies to 
better understand the NDFI exposure, risks, and performance trends. 
Finally, two commenters indicated more lead time was necessary for the 
institutions to properly implement these changes.
    After reviewing these comments, the agencies are moving forward 
with these revisions to the Call Report forms and the FFIEC 002 form, 
as proposed, with the modifications that follow.
    The agencies received comments about what types of NDFI exposures 
would fall under the scope of the proposal and under what items certain 
types of loans that involve NDFIs would be reported. In response, the 
agencies are revising the instructions to more broadly define NDFIs and 
acknowledge that they encompass a wide range of financial entities. In 
addition, the agencies are revising the instructions to indicate that 
NDFIs include securitization vehicles, so that loans to these entities 
would be included in Memorandum item 10.e, ``Other loans to 
nondepository financial institutions.'' The agencies are also 
clarifying that Schedule RC-C, Memorandum item 3, ``Loans to finance 
commercial real estate, construction, and land development activities 
(not secured by real estate) included in Schedule RC-C, part I, items 4 
and 9,'' would also include amounts reported in item 9.a, ``Loans to 
nondepository financial institutions,'' and item 9.b, ``Other loans,'' 
as applicable.
    As originally proposed, loans to broker-dealers would be reported 
as loans to NDFIs in line 9.a. However, one commenter recommended that 
loans to brokers and dealers in securities that are for the purpose of 
purchasing or carrying securities or secured by securities be reported 
in Schedule RC-C, item 9.b.(1), ``Loans for purchasing or carrying 
securities, including margin loans,'' consistent with loans to other 
types of NDFIs and other borrowers, for the same purpose. After 
considering this comment, the agencies are revising the instructions to 
include in item 9.b.(1) all purpose and non-purpose securities-based 
margin loans, regardless of borrower type, that are predominately 
secured (greater than 50 percent of the underlying collateral) by 
securities with readily determinable fair values. This revision would 
address comments about how certain margin loans fall under the scope of 
the proposal, better clarify what constitutes margin-lending, and allow 
for certain loans to broker dealers that meet the definition of 
securities-based margin loans to be reported in 9.b.1. In addition, the 
revised instructions would provide a threshold for a loan to be 
considered secured by securities, which was mentioned by another 
commenter.
    With regard to the new Schedule RC-N, Memorandum item 9, ``Loans to 
nondepository financial institutions, included in Schedule RC-N, item 
7,'' the agencies have determined that separate line items for loans to 
U.S. and to foreign NDFIs are not necessary, and this information would 
be collected in a single line item on a consolidated level. The 
agencies will continue to review the data collected related to NDFIs. 
If further disaggregation of these line items is determined to be 
necessary for the agencies' use at a future date, the agencies will 
publish a proposal for comment at that time.
    To provide additional time for institutions to implement these 
changes, the effective date for these new items will be as of the 
December 31, 2024, report date.
    Finally, commenters raised issues of consistency with other reports 
and definitions not included in the proposals. One commenter stated 
that the proposal raised questions regarding consistency of reporting 
similar exposures on certain information collections made by the Board 
including the Board's Consolidated Financial Statements for Holding 
Companies (FR Y-9C) and Capital Assessments and Stress Testing (FR Y-
14Q/A). If the Board proposes to revise certain information collections 
related to loans to NDFIs, it will publish such proposal(s) for public 
comment. One commenter encouraged the banking agencies to consider 
further alignment between the Call Report and the Country Exposure 
Report (FFIEC 009). Specifically, the commenter noted that while the 
banking agencies are proposing an expanded definition of NDFIs for the 
Call Report, it still would not be aligned with the definition of 
``Non-Bank Financial Institutions (NBFIs)'' for the FFIEC 009. Approval 
of the FFIEC 009 expires August 31, 2025, and the agencies will 
consider any possible revisions, including further alignment between 
reports, when they extend the FFIEC 009. A commenter also encouraged 
the agencies to develop a uniform set of categories of nonbank lending 
to ensure that the definitions and categories are inclusive and 
comparable. The agencies review reporting instructions, and included 
definitions, on a regular basis and seek to incorporate consistency 
where applicable.
2. Guaranteed Structured Financial Products
    In February 2023, a proposal for revisions to the Call Reports \7\ 
included a question on the reporting on Schedule RC-B, Securities, of 
certain Federal Home Loan Mortgage Corporation (FHLMC) and similar 
securitization structures that have government guarantees. Two 
commenters on the February 2023 proposal raised the issue that it was 
not possible to determine what is guaranteed by U.S. Government 
agencies or sponsored agencies in the amounts reported in Schedule RC-B 
item 5.b, columns A through D. In response to these comments, the 
agencies included in the December 2023 notice a proposal for a new 
Memorandum item on Schedule RC-B that would identify the amounts 
reported in item 5.b that are guaranteed by U.S. Government or 
sponsored agencies.
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    \7\ 85 FR 10644 (Feb. 21, 2023).
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    The agencies received comment letters from one trade organization 
and thirty individuals supporting the addition of this new Memorandum 
item. The agencies are moving forward with the addition of Memorandum 
item 7, ``Guaranteed by U.S. Government agencies or sponsored agencies 
included in Schedule RC-B, item 5.b'', columns A through D, on Schedule 
RC-B, as proposed. However, to allow additional time to implement these 
changes, the effective date for these revisions will be as of the 
December 31, 2024, report date.

[[Page 45052]]

    An additional comment letter from one individual requested 
clarification to the instructions to avoid double counting certain 
FHLMC securities on Schedule RC-B, Securities. In addition, this 
commenter did not agree that certain structured financial products 
issued by FHLMC should be reported in item 5.b., but instead should be 
reported in item 4.c.(1).
    To address this comment letter, the agencies are clarifying in the 
instructions that institutions should exclude from the amounts reported 
in item 4.c.(1)(a) the structured financial products that are reported 
in item 5.b. Clarification would be added to the instructions for item 
5.b, to exclude pass-through securities that are reported in item 
4.c.(1)(a). However, the agencies do not agree with the commenter that 
certain structured financial products issued by FHLMC should be 
reported in item 4.c.(1). Schedule RC-B, Securities, item 4.c.(1) 
relates solely to commercial mortgage pass-through securities that 
generally provide the holder with a pro rata share of all principal and 
interest payments on a pool of mortgages. The amounts reported in item 
4.c.(1)(a) should exclude securitizations that involve more than one 
trust to structure principal and interest cash flows to investors or 
that are collateralized by debt instruments, such as FHLMC K-deals and 
Q-deals and similar securitizations. These securities should be 
reported in item 5.b.
3. Long-Term Debt Requirements
    On August 29, 2023, the federal banking regulatory agencies 
requested comment on a proposal that would require large banks with 
total assets of $100 billion or more to maintain a layer of long-term 
debt (LTD), which would improve financial stability by increasing the 
resolvability and resiliency of such institutions. This notice of 
proposed rulemaking (NPR) was published in the Federal Register on 
September 19, 2023.\8\ Consistent with the proposed requirements and 
discussion in the NPR, in the December 2023 notice, the agencies 
proposed to revise Schedule RC-R, Part I, Regulatory Capital Components 
and Ratios, by adding five new items to the FFIEC 051 Call Report and 
six new items to the FFIEC 041 and FFIEC 031 Call Report forms.
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    \8\ 88 FR 64524 (Sept. 19, 2023).
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    The federal banking regulatory agencies have not finalized the LTD 
NPR. Therefore, the agencies are deferring report form and 
instructional changes related to the LTD proposal. If the LTD NPR is 
finalized, the agencies would finalize associated reporting changes in 
a future Paperwork Reduction Act notice, which will also provide an 
opportunity for additional comment on the revisions to the Call Report 
forms and instructions. The agencies did receive three comment letters 
on the proposed Call Report forms and instructional changes for the LTD 
requirement, which will be considered when developing a future notice.
4. Electronic Signatures
    Federal law requires that certain personnel and directors attest to 
the accuracy of the data submitted in the bank's Call Report by 
signature.\9\ In addition to being required by statute, review of the 
Call Report in connection with signing the attestation supports 
internal control over the bank's reporting. The Call Report 
instructions permit a bank to satisfy the signature requirement by 
obtaining physical signatures from the relevant parties attached to a 
copy of the associated Call Report that is retained in the bank's 
files.
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    \9\ 12 U.S.C. 161(a) (national banks) and 1817(a)(3) (all 
insured depository institutions).
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    The onset of the COVID-19 pandemic in March 2020 and resulting bank 
office closures presented challenges to complying with the physical 
signature requirement. The agencies responded by permitting reasonable 
alternative signature methods, including electronic signatures, to be 
used for the duration of the pandemic.\10\
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    \10\ Call Report Supplemental Instructions for March 2020, 
available at: https://www.ffiec.gov/pdf/FFIEC_forms/FFIEC031_FFIEC041_FFIEC051_suppinst_202003.pdf.
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    In the December 2023 notice, the agencies sought comment on a 
proposal to adopt ongoing standards for electronic signatures to comply 
with the Call Report signature and attestation requirement. Thirty-one 
commenters supported moving forward with this proposal. The agencies 
are adopting this framework for electronic signatures, which will be 
effective with the June 30, 2024, report date.

III. Timing

    The following proposed changes would be effective with the June 30, 
2024, report date: (1) the revisions and technical edits to the Call 
Report and the FFIEC 002 related to ASU 2022-02, (2) the clarification 
and revisions to the Call Report forms and instructions for the 
depository institution trade names and deposit accepting URL items on 
Schedule RC-M, and (3) the adoption of the electronic signatures 
framework.
    The following proposed changes would be effective with the December 
31, 2024, report date: (1) the revisions to the Call Report and FFIEC 
002 report forms and instructions related to loans to NDFIs and other 
loans, and (2) the revisions to the Call Report forms and instructions 
related to guaranteed structured financial products on Schedule RC-B.

IV. 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.

Patrick T. Tierney,
Assistant Director, Bank Advisory, Office of the Comptroller of the 
Currency.

    Board of Governors of the Federal Reserve System.
Benjamin W. McDonough,
Deputy Secretary and Ombuds of the Board.

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on April 29, 2024.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2024-11221 Filed 5-21-24; 8:45 am]
BILLING CODE 4810-33-P, 6210-01-P, 6714-01-P