Notice2023-12553
Agency Information Collection Activities; Submission for OMB Review; Comment Request
Primary source
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Published
June 13, 2023
Issuing agencies
Treasury DepartmentComptroller of the CurrencyFederal Reserve SystemFederal Deposit Insurance Corporation
Abstract
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 February 21, 2023, the agencies, under the auspices of the Federal Financial Institutions Examination Council (FFIEC), requested public comment for 60 days on a proposal to revise and extend the Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC 051), and the Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002), all of which are currently approved collections of information. These proposed revisions to the Call Reports and the FFIEC 002 result from the 2022 statutorily mandated review of the Call Reports, Call Report process revisions, and reporting of certain Federal Home Loan Mortgage Corporation and similar securitizations.
Full Text
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<title>Federal Register, Volume 88 Issue 113 (Tuesday, June 13, 2023)</title>
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[Federal Register Volume 88, Number 113 (Tuesday, June 13, 2023)]
[Notices]
[Pages 38592-38596]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-12553]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
Agency Information Collection Activities; Submission for OMB
Review; Comment Request
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Joint notice and request for comment.
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SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may
not conduct or sponsor, and a respondent is not required to respond to,
an information collection unless it displays a currently valid Office
of Management and Budget (OMB) control number. On February 21, 2023,
the agencies, under the auspices of the Federal Financial Institutions
Examination Council (FFIEC), requested public comment for 60 days on a
proposal to revise and extend the Consolidated Reports of Condition and
Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC 051), and the
Report of Assets and Liabilities of U.S. Branches and Agencies of
Foreign Banks (FFIEC 002), all of which are currently approved
collections of information. These proposed revisions to the Call
Reports and the FFIEC 002 result from the 2022 statutorily mandated
review of the Call Reports, Call Report process revisions, and
reporting of certain Federal Home Loan Mortgage Corporation and similar
securitizations.
DATES: Comments must be submitted on or before July 13, 2023.
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, by any of the following methods:
<bullet> Email: <a href="/cdn-cgi/l/email-protection#f28280939b9c949db29d9191dc8680979381dc959d84"><span class="__cf_email__" data-cfemail="324240535b5c545d725d51511c46405753411c555d44">[email protected]</span></a>.
<bullet> 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.
<bullet> 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 <a href="http://www.reginfo.gov">www.reginfo.gov</a>
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:
<bullet> Viewing Comments Electronically: Go to <a href="http://www.reginfo.gov">www.reginfo.gov</a>.
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.
<bullet> For assistance in navigating <a href="http://www.reginfo.gov">www.reginfo.gov</a>, 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:
<bullet> Agency Website: <a href="https://www.federalreserve.gov">https://www.federalreserve.gov</a>. Follow the
instructions for submitting comments at: <a href="https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm">https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#d1a3b4b6a2ffb2bebcbcb4bfa5a291b7b4b5b4a3b0bda3b4a2b4a3a7b4ffb6bea7"><span class="__cf_email__" data-cfemail="681a0d0f1b460b0705050d061c1b280e0d0c0d1a09041a0d1b0d1a1e0d460f071e">[email protected]</span></a>. Include ``Call
Report and FFIEC 002 Revisions'' in the subject line of the message.
<bullet> Fax: (202) 395-6974.
<bullet> Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal
[[Page 38593]]
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 <a href="http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm">www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm</a> 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:
<bullet> Agency Website: <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>. Follow the instructions for
submitting comments on the FDIC's website.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#b5d6dad8d8d0dbc1c6f5f3f1fcf69bd2dac3"><span class="__cf_email__" data-cfemail="4f2c2022222a213b3c0f090b060c61282039">[email protected]</span></a>. Include ``Call Report (FFIEC
002) Revisions'' in the subject line of the message.
<bullet> Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW,
Washington, DC 20429.
<bullet> 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.
<bullet> Public Inspection: All comments received will be posted
without change to <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>, 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
<a href="/cdn-cgi/l/email-protection#6c03051e0d331f190e01051f1f0503022c03010e4209031c420b031a"><span class="__cf_email__" data-cfemail="402f2932211f3335222d293333292f2e002f2d226e252f306e272f36">[email protected]</span></a>.
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 (<a href="https://www.ffiec.gov/ffiec_report_forms.htm">https://www.ffiec.gov/ffiec_report_forms.htm</a>).
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 February, 2023
notice ended on April 24, 2023. After considering the comments received
on the proposal, the FFIEC and the agencies are proceeding with the
proposed revisions related to the 2022 statutorily mandated review,
with certain modifications. These reporting revisions would take effect
for the September 30, 2023, report date, rather than as of the June 30,
2023, report date, as originally proposed. The agencies are continuing
to review the reporting of certain Federal Home Loan Mortgage
Corporation and similar securitizations.
The agencies also are proposing clarifications to the reporting
instructions for certain items on Schedule RC-T, Fiduciary and Related
Services.
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
I. Report Summary
A. Call Report
B. FFIEC 002 and FFIEC 002S
II. Current Actions
A. Background
B. Proposed Changes and Comments Received
1. Statutorily Mandated Review
2. Call Report Process Changes
3. Clarification of Reporting Certain Securitizations
4. Other Comments Received
C. Proposed Instructional Clarifications to Schedule RC-T,
Fiduciary and Related Services
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: 1,015 national banks and federal
savings associations.
Estimated Average Burden per Response: 40.68 burden hours per
quarter to file.
Estimated Total Annual Burden: 165,161 burden hours to file.
Board
OMB Control No.: 7100-0036.
Estimated Number of Respondents: 699 state member banks.
Estimated Average Burden per Response: 44.13 burden hours per
quarter to file.
Estimated Total Annual Burden: 123,387 burden hours to file.
FDIC
OMB Control No.: 3064-0052.
Estimated Number of Respondents: 2,990 insured state nonmember
banks and state savings associations.
Estimated Average Burden per Response: 38.87 burden hours per
quarter to file.
Estimated Total Annual Burden: 464,885 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
84.53 (FFIEC 031), 54.60 (FFIEC 041), and 34.41 (FFIEC 051). These
estimates represent a reduction of 1.96 hours (FFIEC 031), 0.93 (FFIEC
041) and 0.97 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 38594]]
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\ <a href="http://www.ffiec.gov/forms031.htm">www.ffiec.gov/forms031.htm</a>; <a href="http://www.ffiec.gov/forms041.htm">www.ffiec.gov/forms041.htm</a>;
<a href="http://www.ffiec.gov/forms051.htm">www.ffiec.gov/forms051.htm</a>.
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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--18.
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--432 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
On February 21, 2023, the agencies proposed revisions to all three
versions of the Call Report (FFIEC 031, FFIEC 041 and the FFIEC 051)
and the FFIEC 002 resulting from the 2022 statutorily mandated full
review, along with proposed Call Report process improvements and
reporting of certain securitizations (February notice).\2\ The comment
period for the February notice ended on April 24, 2023. The agencies
received three comments on the February notice.
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\2\ 88 FR 10644 (Feb. 21, 2023).
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Additionally, in response to questions received from preparers of
the Call Report and other stakeholders, as well as to promote
consistent reporting across all institutions, the agencies are
clarifying the instructions on the reporting of certain items on
Schedule RC-T, Fiduciary and Related Services, as detailed in Section
II.C of this SUPPLEMENTARY INFORMATION.
[[Page 38595]]
B. Proposed Changes and Comments Received
1. Statutorily Mandated Review
As a result of the statutorily mandated review required by Section
604 of the of the Financial Services Regulatory Relief Act of 2006,\3\
the agencies identified multiple items for removal or consolidation.
These items related to FDIC loss-sharing agreements, negative
amortization loans, reverse mortgages, and the money market mutual fund
liquidity facility (MMLF). Additional detail about the specific line
items impacted is included in the February notice.
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\3\ 12 U.S.C. 1817(a)(11).
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One commenter generally supported the removal of items no longer
necessary in connection with the statutorily mandated review. This
commenter also requested removal of Schedule RC-C, Memorandum items
17.a and 17.b, which collect information regarding the number and
amount of loans modified pursuant to Section 4013 of the CARES Act.\4\
The commenter noted that similar items previously were removed from
bank holding company reports. These items relate to loan modifications
or restructurings, which the agencies are planning to address in a more
comprehensive proposal. Therefore, the agencies will retain these items
for now but will consider the commenter's input when developing that
proposal, which will follow the standard notice and comment process
pursuant to the Paperwork Reduction Act.
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\4\ Public Law 116-136, 4013 (2020).
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After further deliberation and recent loss-share transactions
established by the FDIC, the agencies decided to retain and redesignate
certain items related to FDIC loss-sharing agreements that had been
proposed for removal. These items are necessary solely for FDIC deposit
insurance assessment purposes. On the FFIEC 031 and FFIEC 041 Call
Report forms, the retained items are:
<bullet> Schedule RC-M, item 13.b.(7), ``Portion of covered other
real estate owned included in items 13.b.(1) through (6) above that is
protected by FDIC loss-sharing agreements.'' This item would be
redesignated as item 13 and reflect the total of other real estate
owned that is protected by FDIC loss-sharing arrangements. The agencies
still would discontinue all other subitems of item 13, including
subitems 13.b.(1) through 13.b.(6), 13.c and 13.d, as this information
is not necessary for deposit insurance assessment or other purposes.
<bullet> Schedule RC-N, item 12.f, ``Portion of covered loans and
leases included in items 12.a through 12.e above that is protected by
FDIC loss-sharing agreements'' (Columns A, B, and C). This item would
be redesignated as item 12 and reflect the total of loans and leases
protected by FDIC loss-sharing arrangements. The agencies still would
discontinue subitems 12.a through 12.e, as this information is not
necessary for deposit insurance assessment or other purposes.
On the FFIEC 051, the agencies will also retain the following
subitems of Schedule SU, item 9.c, ``Portion of past due and nonaccrual
covered loans and leases that is protected by FDIC loss-sharing
agreements:''
<bullet> Schedule SU, item 9.c.(2), ``Past due 90 days or more and
still accruing.''
<bullet> Schedule SU, item 9.c.(3), ``Nonaccrual.''
These items would be moved to Schedule RC-N, Past Due and
Nonaccrual Loans, Leases, and Other Assets, and redesignated as item
12, ``Portion of loans and leases covered by FDIC loss-sharing
agreements,'' with reporting in column B, ``Past due 90 days or more
and still accruing'' and column C, ``Nonaccrual,'' which would be
consistent with the FFIEC 031 and FFIEC 041 forms. The agencies still
would discontinue the other subitems under Schedule SU, item 9, FDIC
Loss-Sharing Agreements, as this information is not necessary for
deposit insurance assessment or other purposes.
The agencies are proceeding with the removal or consolidation of
the other items described in the February notice. While the agencies
had proposed removing these items as of June 30, 2023, due to the time
needed to update systems for the Call Reports, the agencies instead
propose to remove or consolidate the items related to negative
amortization loans, reverse mortgages, MMLF and FDIC loss-sharing
agreements, as described above, effective as of the September 30, 2023,
report date.
Furthermore, to maintain consistency of reporting between the Call
Report and the FFIEC 002, the Board proposed in the February notice to
remove from Schedule O, Other Data for Deposit Insurance Assessments,
Memorandum item 7, ``Quarterly average amount of holdings of assets
purchased from money market funds under the Money Market Mutual Fund
Liquidity Facility'' and intend to remove this item, also effective for
the September 30, 2023, report date.
2. Call Report Process Changes
In the February notice, the agencies had proposed changes to
improve efficiency and usability of the Call Report. Specifically, the
agencies proposed providing the Call Report instructions and the
instructional updates using the Portable Document Format instead of the
binder format and would discontinue preparing the optional tax
worksheet. No comments were received on these process changes, and the
agencies will discontinue the optional tax worksheet starting with the
June 30, 2023, report date. The agencies are continuing to review
alternatives to providing the Call Report instructions and the
instructional updates in a format other than the existing binder
format.
3. Clarification of Reporting Certain Securitizations
In the February notice, the agencies had proposed a change to
clarify reporting of certain Federal Home Loan Mortgage Corporation and
similar securitization structures that have government guarantees in
the Call Report. The agencies had proposed clarifying that these
securitizations should be reported in Schedule RC-B, Securities, item
5.b., ``Structured financial products.''
Two comments were received on this clarification. One comment
opposed reporting of these securities in Schedule RC-B, Securities,
item 5.b, noting that this item includes a broad range of structured
financial products, and there would be a lack of clarity on the amount
of securities reported in this item that is guaranteed by a government
or agency. The other comment supported reporting these securities in
item 5.b. However, the commenter also noted the lack of transparency in
this item regarding the proportion of securities with government
guarantees. The commenter requested that a subcategory be added to item
5.b to report the amount that was guaranteed by the U.S. government or
an agency. The agencies are continuing to review the original
clarification and the new item proposed by the commenter.
4. Other Comments Received
The agencies also received requests from two commenters on the Call
Report that were not specifically related to any of the proposed
changes.
One commenter requested the agencies to provide clarification on
how long an institution would continue to report a loan subsequent to
its modification that met the criteria in Accounting Standards Update
2022-02, ``Financial Instruments--Credit Losses (Topic 326): Troubled
Debt Restructurings and Vintage Disclosures'' (ASU 2022-02) in the Call
Report. The agencies plan to propose revisions to the
[[Page 38596]]
Call Report in response to ASU 2022-02 and will consider these comments
at that time. This proposal would follow the standard notice and
comment process pursuant to the PRA.
The other commenter requested that the agencies expand the level of
detail on interest and fee income collected in the Call Report on
Schedule RI, Income Statement, to align with each loan category
reported on Schedule RC-C, Part I, Loans and Leases. The agencies are
declining to make any changes to the level of detail on loan income at
this time. The current level of detail strikes the appropriate balance
between the information necessary for monitoring the condition and
performance of individual institutions and the industry with the effort
required by those organizations to separately collect and report
interest and fee income information by loan category.
C. Proposed Instructional Clarifications to Schedule RC-T, Fiduciary
and Related Services
In response to questions received on the reporting of managed and
non-managed assets and number of managed and non-managed accounts on
Schedule RC-T, Fiduciary and Related Services, and to promote
consistent reporting across all institutions, the agencies are
proposing to clarify the instructions for these items as of the
September 30, 2023, report date. Specifically:
<bullet> Reporting of life insurance trusts. The agencies have
observed inconsistent reporting of life insurance trusts and are
clarifying that life insurance trusts, other than term life insurance
policies that have nominal value, should be reported in Schedule RC-T,
item 4, ``Personal trust and agency accounts.'' Relatedly, the agencies
are proposing to clarify in the ``Fiduciary and Related Assets''
section of the Schedule RC-T instructions that the cash surrender value
of a life insurance policy generally may be used when calculating the
value of the account.
<bullet> Classification of investment advisory employee benefit
accounts. The agencies have observed inconsistent reporting of employee
benefit accounts for which the institution provides investment services
or investment advice for a fee and whether those accounts are
classified as managed or non-managed in item 5, ``Employee benefit and
retirement-related trust and agency accounts.'' The agencies are
proposing to clarify in Schedule RC-T, items 5.a through 5.c, that
accounts for which the institution serves as either trustee or agent
and provides investment management services, or provides investment
advice for a fee, should be reported in one of the subcategories of
item 5. The agencies are further proposing to clarify that accounts for
which the institution serves as a directed trustee or provides
investment advice for a fee should be reported under non-managed
accounts. In addition, the agencies are proposing to clarify that
employee benefit accounts for which the institution provides investment
management or investment advisory services should not be reported in
Schedule RC-T, item 7, ``Investment management and investment advisory
agency accounts.''
<bullet> Primary relationship test. The agencies have observed
inconsistent reporting of trust accounts for which the institution has
both a fiduciary and custodial relationship. The current instructions
for Schedule RC-T, item 11, ``Custody and safekeeping accounts''
indicate that the institution should report the account under the
primary relationship. The agencies are proposing to clarify in the
instructions for this item that when an institution has both a
fiduciary and custodial relationship, the fiduciary relationship is the
primary relationship. In this case, the account should be reported as a
fiduciary account in Schedule RC-T, items 4 through 9, and it should
not be reported as a custodial account in item 11.
<bullet> Back-office services. The agencies have received questions
about whether accounts for which the institution provides back-office
or operational services for a third party, but does not hold the
account, should be reported along with custody and safekeeping
accounts. The agencies are proposing to revise the ``Fiduciary and
Related Assets'' section of the Schedule RC-T instructions to clarify
that accounts for which the institution only provides back-office or
operational services and the accounts or assets are not held by the
institution should not be reported in Schedule RC-T.
The agencies are proposing to incorporate these clarifications
starting with the September 30, 2023, report date. The agencies would
expect institutions that are not currently reporting consistent with
these clarifications to incorporate the clarifications on a best-
efforts basis over the four subsequent quarterly reports.
III. Timing
The revisions to the Call Report and the FFIEC 002 resulting from
the statutorily mandated full review related to certain loss-sharing
agreements with the FDIC, negative amortization loans, reverse
mortgages, and MMLF items, and the proposed clarifications to the
instructions for Schedule RC-T, will be effective as of the September
30, 2023, report date, subject to OMB approval. The agencies plan to
discontinue the optional tax worksheet as part of the implementation of
the Call Report process changes starting with the June 30, 2023, report
date.
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.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
Board of Governors of the Federal Reserve System.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on June 6, 2023.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2023-12553 Filed 6-12-23; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P
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