60-Day Federal Register Notice

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices
or businesses in the U.S. that use U.S.flag vessels. If MARAD determines, in
accordance with 46 U.S.C. 12121 and
MARAD’s regulations at 46 CFR part
388, that the issuance of the waiver will
have an unduly adverse effect on a U.S.vessel builder or a business that uses
U.S.-flag vessels in that business, a
waiver will not be granted. Comments
should refer to the docket number of
this notice and the vessel name in order
for MARAD to properly consider the
comments. Comments should also state
the commenter’s interest in the waiver
application, and address the waiver
criteria given in § 388.4 of MARAD’s
regulations at 46 CFR part 388.
Privacy Act
Anyone is able to search the
electronic form of all comments
received into any of our dockets by the
name of the individual submitting the
comment (or signing the comment, if
submitted on behalf of an association,
business, labor union, etc.). You may
review DOT’s complete Privacy Act
Statement in the Federal Register
published on April 11, 2000 (Volume
65, Number 70; Pages 19477–78).
By Order of the Maritime Administrator
Dated: September 14, 2015.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2015–23501 Filed 9–17–15; 8:45 am]
BILLING CODE 4910–81–P

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

In accordance with the
requirements of the Paperwork
Reduction Act (PRA) of 1995 (44 U.S.C.
chapter 35), the OCC, the Board, and the
FDIC (the ‘‘agencies’’) may not conduct
or sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget

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SUMMARY:

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(OMB) control number. The Federal
Financial Institutions Examination
Council (FFIEC), of which the agencies
are members, has approved the
agencies’ publication for public
comment of a proposal to extend, with
revision, the Consolidated Reports of
Condition and Income (Call Report),
which are currently approved
collections of information. The
deletions of certain existing data items,
the revisions of certain reporting
thresholds and certain existing data
items, the addition of certain new data
items, and certain instructional
revisions generally are proposed to take
effect as of the December 31, 2015, or
the March 31, 2016, report date,
depending on the nature of the
proposed reporting change. At the end
of the comment period, the comments
and recommendations received will be
analyzed to determine the extent to
which the FFIEC and the agencies
should modify the proposed revisions
prior to giving final approval. The
agencies will then submit the revisions
to OMB for review and approval.
DATES: Comments must be submitted on
or before November 17, 2015.
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: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by
email, if possible. Comments may be
sent to: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, Attention
‘‘1557–0081, FFIEC 031 and 041,’’ 400
7th Street SW., Suite 3E–218, Mail Stop
9W–11, Washington, DC 20219. In
addition, comments may be sent by fax
to (571) 465–4326 or by electronic mail
to [email protected].
You may personally inspect and
photocopy comments at the OCC, 400
7th Street SW., Washington, DC 20219.
For security reasons, the OCC requires
that visitors make an appointment to
inspect comments. You may do so by
calling (202) 649–6700. Upon arrival,
visitors will be required to present valid
government-issued photo identification
and submit to security screening in
order to inspect and photocopy
comments.
All 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

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you consider confidential or
inappropriate for public disclosure.
Board: You may submit comments,
which should refer to ‘‘FFIEC 031 and
FFIEC 041,’’ by any of the following
methods:
• Agency Web site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at:
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: regs.comments@
federalreserve.gov. Include the reporting
form numbers in the subject line of the
message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Robert DeV. Frierson,
Secretary, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper in Room MP–500 of the Board’s
Martin Building (20th and C Streets,
NW.) between 9:00 a.m. and 5:00 p.m.
on weekdays.
FDIC: You may submit comments,
which should refer to ‘‘FFIEC 031 and
FFIEC 041,’’ by any of the following
methods:
• Agency Web site: http://
www.fdic.gov/regulations/laws/federal/
. Follow the instructions for submitting
comments on the FDIC’s Web site.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: [email protected].
Include ‘‘FFIEC 031 and FFIEC 041’’ in
the subject line of the message.
• Mail: Gary A. Kuiper, Counsel,
Attn: Comments, Room MB–3074,
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 http://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

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Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices

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 oira_
[email protected].
FOR FURTHER INFORMATION CONTACT: For
further information about the proposed
revisions to the Call Report discussed in
this notice, please contact any of the
agency staff whose names appear below.
In addition, copies of the Call Report
forms can be obtained at the FFIEC’s
Web site (http://www.ffiec.gov/ffiec_
report_forms.htm).
OCC: Kevin Korzeniewski, Senior
Attorney, (202) 649–5490, for persons
who are deaf or hard of hearing, TTY,
(202) 649–5597, Legislative and
Regulatory Activities Division, Office of
the Comptroller of the Currency, 400 7th
Street SW., Washington, DC 20219.
Board: Mark Tokarski, Acting Federal
Reserve Board Clearance Officer, (202)
452–3829, 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: Gary A. Kuiper, Counsel, (202)
898–3877, and John Popeo, Counsel,
(202) 898–6923, Legal Division, Federal
Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: The
agencies are proposing to revise and
extend for three years the Call Report,
which is currently an approved
collection of information for each
agency.
Report Title: Consolidated Reports of
Condition and Income (Call Report).
Form Number: Call Report: FFIEC 031
(for banks and savings associations with
domestic and foreign offices) and FFIEC
041 (for banks and savings associations
with domestic offices only).
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.

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OCC
OMB Number: 1557–0081.
Estimated Number of Respondents:
1,503 national banks and federal savings
associations.
Estimated Time per Response: 59.41
burden hours per quarter to file.
Estimated Total Annual Burden:
357,173 burden hours to file.

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Board
OMB Number: 7100–0036.
Estimated Number of Respondents:
850 state member banks.
Estimated Time per Response: 59.90
burden hours per quarter to file.
Estimated Total Annual Burden:
203,660 burden hours to file.
FDIC
OMB Number: 3064–0052.
Estimated Number of Respondents:
4,036 insured state nonmember banks
and state savings associations.
Estimated Time per Response: 44.56
burden hours per quarter to file.
Estimated Total Annual Burden:
719,377 burden hours to file.
The estimated time 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). The
average reporting burden for the filing of
the Call Report as it is proposed to be
revised is estimated to range from 20 to
775 hours per quarter, depending on an
individual institution’s circumstances.
Type of Review: Revision and
extension of currently approved
collections.
General Description of Reports
These information collections are
mandatory: 12 U.S.C. 161 (for national
banks), 12 U.S.C. 324 (for state member
banks), 12 U.S.C. 1817 (for insured state
nonmember commercial and savings
banks), and 12 U.S.C. 1464 (for federal
and state savings associations). At
present, except for selected data items,
these information collections are not
given confidential treatment.
Abstract
Institutions 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 missions of ensuring the
safety and soundness of financial
institutions and the financial system
and the protection of consumer
financial rights, as well as agencyspecific missions affecting national and
state-chartered institutions, e.g.,
monetary policy, financial stability, and
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

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examinations. The agencies use Call
Report data in evaluating institutions’
corporate applications, including, in
particular, interstate merger and
acquisition applications for which, as
required by law, the agencies must
determine whether the resulting
institution would control more than ten
percent of the total amount of deposits
of insured depository institutions in the
United States. Call Report data also are
used to calculate institutions’ deposit
insurance and Financing Corporation
assessments and national banks’ and
federal savings associations’ semiannual
assessment fees.
Current Actions
I. Introduction
The FFIEC launched a formal
initiative in December 2014 to identify
potential opportunities to reduce
burden associated with Call Report
requirements for community banks. In
embarking on this effort, the FFIEC was
responding to industry concerns about
the cost and burden associated with the
Call Report. The FFIEC’s formal
initiative comprises actions in five
areas, which are discussed below. In
addition, as a foundation for the actions
it is undertaking, the FFIEC has
developed a set of guiding principles for
use in evaluating potential additions
and deletions of Call Report data items
and other revisions to the Call Report.
In general, any Call Report changes
must meet three guiding principles: (1)
The data items serve a long-term
regulatory or public policy purpose by
assisting the FFIEC’s member entities in
fulfilling their missions of ensuring the
safety and soundness of financial
institutions and the financial system
and the protection of consumer
financial rights, as well as entityspecific missions affecting national and
state-chartered institutions; (2) The data
items to be collected maximize practical
utility and minimize, to the extent
practicable and appropriate, burden on
financial institutions; and (3) Equivalent
data items are not readily available
through other means.
As a first action under the FFIEC’s
Call Report burden-reduction initiative,
the agencies are publishing this Federal
Register notice and requesting comment
on a number of proposed burdenreducing changes and certain other
proposed Call Report revisions
identified during their most recent
statutorily mandated review of the
information collected in the Call
Report.1 Implementation of the
1 This review is mandated by section 604 of the
Financial Services Regulatory Relief Act of 2006 (12
U.S.C. 1817(a)(11)).

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Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices
revisions identified during that review
had been deferred while the agencies
adopted changes to the reporting of
regulatory capital information in the
Call Report to implement the revised
regulatory capital rules issued in July
2013 that took effect as of January 1,
2014, and January 1, 2015.2
The FFIEC and the agencies also
identified and incorporated into this
proposal certain other burden-reducing
changes to the Call Report in addition
to those identified in the most recent
statutorily mandated review of the Call
Report. The burden-reducing changes
included as part of this first action are
not intended to be the only group of Call
Report revisions designed to lessen
reporting burden for reporting
institutions and, in particular, for
community banks. Additional burdenreducing changes to the Call Report are
expected to result from the other actions
being taken by the agencies under the
FFIEC’s Call Report burden-reduction
initiative.
As the second action, the agencies
have accelerated the start of the next
statutorily mandated review of the
existing Call Report data items, which
otherwise would have commenced in
2017. Users of Call Report data items at
the FFIEC’s member entities are
participating in a series of surveys being
conducted over an 18-month period that
began in mid-July 2015. As an integral
part of these surveys, users are being
asked to fully explain the need for each
Call Report data item, how it is used,
the frequency with which it is needed,
and the population of institutions from
which it is needed. Call Report
schedules have been placed into groups
and prioritized for review, generally
based on perceived burden as cited by
banking industry representatives. Based
on the results of the surveys, the
agencies will identify data items that
will be considered for elimination, less
frequent collection, or new or upwardly
revised reporting thresholds. Burdenreducing reporting changes will be
proposed for implementation on a flow
basis as they are identified during the
sequential reviews of groups of Call
Report schedules rather than waiting
until the completion of the entire
review.
As a third action, the agencies are
considering the feasibility and merits of
creating a less burdensome version of
the quarterly Call Report for institutions
that meet certain criteria, which may
include an asset-size reporting threshold
or activity limitations. For example, a
2 See 78 FR 48932 (August 12, 2013); 79 FR 2527
(January 14, 2014); 79 FR 35634 (June 23, 2014);
and 80 FR 5618 (February 2, 2015).

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report for eligible institutions could
exclude the Call Report schedules and
items not applicable to institutions
below the specified asset-size threshold.
The agencies plan to complete their
analysis regarding the concept of such a
Call Report by year-end 2015. Any plan
for a new version of the Call Report
would need to be approved by the
FFIEC and implemented by the agencies
in compliance with the applicable
requirements under the PRA.
A fourth action for the agencies is to
better understand, through industry
dialogue, the aspects of reporting
institutions’ Call Report preparation
process that are significant sources of
reporting burden, including where
manual intervention by an institution’s
staff is necessary to report particular
information. As an initial step toward
gaining this understanding,
representatives from the FFIEC’s
member entities plan to visit a limited
number of institutions that have
expressed their willingness to host a
visit during the third quarter of 2015.
Institution staff would be asked to show
how they prepare their Call Reports and
explain which schedules or data items
take a significant amount of time or
manual processes to complete and the
reasons for this. Findings from on-site
visits would help the agencies
determine the nature and form of further
banker outreach. The information
obtained from these activities would
assist the agencies in evaluating
whether and how it may be possible to
reduce reporting burden by revising or
redefining Call Report data items.
As the fifth action, the agencies plan
to offer periodic training to bankers via
teleconferences and webinars that
would explain upcoming reporting
changes and could also provide
guidance on areas of the Call Report
bankers find challenging to complete.
These events should benefit institutions
by reducing Call Report preparation
training costs. The first training session
was a banker teleconference on
February 25, 2015, that included a
presentation on the revised Call Report
Schedule RC–R regulatory capital
reporting requirements that took effect
on March 31, 2015, followed by a
question-and-answer session. The slide
presentation used during the
teleconference, an audio recording of
this presentation, and a transcript of the
entire teleconference have been posted
on the FFIEC’s Web site.
II. Overview
The agencies are proposing to
implement a number of revisions to the
Call Report requirements in December
2015 or March 2016, depending on the

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nature of the proposed revision. The
proposed changes, which are discussed
in detail in Sections III.A through III.E
below and would take effect in
December 2015 unless otherwise
indicated, include:
• Deletions of certain existing data
items pertaining to other-thantemporary impairments from Schedule
RI, Income Statement; troubled debt
restructurings from Schedule RC–C, Part
I, Loans and Leases, and Schedule RC–
N, Past Due and Nonaccrual Loans,
Leases, and Other Assets; loans covered
by FDIC loss-sharing agreements from
Schedule RC–M, Memoranda, and
Schedule RC–N; and unused
commitments to asset-backed
commercial paper conduits with an
original maturity of one year or less in
Schedule RC–R, Part II, Risk-Weighted
Assets;
• Increases in existing reporting
thresholds for certain data items in five
Call Report schedules 3 and the
establishment of a reporting threshold
for certain data items in Schedule RC–
S, Servicing, Securitization, and Asset
Sale Activities;
• Instructional revisions addressing
the reporting of home equity lines of
credit that convert from revolving to
non-revolving status in Schedule RC–C,
Part I; securities for which a fair value
option is elected in Schedule RC,
Balance Sheet; and net gains (losses)
and other-than-temporary impairments
on equity securities that do not have
readily determinable fair values in
Schedule RI;
• New and revised data items and
information of general applicability,
including:
Æ Increasing the time deposit size
threshold used to report certain deposit
information from $100,000 to $250,000
in Schedule RC–E, Deposit Liabilities;
Schedule RI; and Schedule RC–K,
Quarterly Averages; 4
Æ Revising the statements used to
describe the level of external auditing
work performed for the reporting
institution during the preceding year in
Schedule RC (effective in March 2016);
Æ Adding contact information for the
reporting institution’s Chief Executive
Officer;
3 The data items for which components in excess
of specified reporting thresholds are required to be
itemized and described are included in Schedule
RI–E, Explanations; Schedule RC–D, Trading Assets
and Liabilities; Schedule RC–F, Other Assets;
Schedule RC–G, Other Liabilities; and Schedule
RC–Q, Assets and Liabilities Measured at Fair Value
on a Recurring Basis.
4 Effective in March 2016 for the data items for
the interest expense on and quarterly averages of
time deposits in Schedules RI and RC–K,
respectively.

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Æ Reporting the Legal Entity Identifier
for the reporting institution if it already
has one (on the Call Report cover page);
Æ Creating additional preprinted
captions for itemizing and describing
components of certain items that exceed
reporting thresholds in Schedules RC–F
and RI–E; and
Æ Eliminating the concept of
extraordinary items and revising
affected data items in Schedule RI
(effective in March 2016); and
• New and revised data items of
limited applicability, including:
Æ Revising the reporting of certain
securities measured under a fair value
option in Schedule RC–Q and moving
the existing Memorandum items for the
fair value and unpaid principal balance
of loans (not held for trading) measured
under a fair value option from Schedule
RC–C, Part I, to Schedule RC–Q;
Æ Revising the information reported
in Schedule RI Memorandum items by
institutions with total assets of $100
billion or more on the impact on trading
revenues of changes in credit and debit
valuation adjustments (effective in
March 2016);
Æ Adding a new item on ‘‘dually
payable’’ deposits in foreign branches of
U.S. banks to Schedule RC–E, Part II,
Deposits in Foreign Offices, on the
FFIEC 031 report; and
Æ Revising the information reported
about the supplementary leverage ratio
by advanced approaches institutions in
Schedule RC–R, Part I, Regulatory
Capital Components and Ratios
(effective in March 2016).
For the Call Report revisions
proposed to take effect in December
2015, the agencies invite comment on
any difficulties that institutions would
encounter in implementing any of these
revisions in their year-end 2015 Call
Reports.
For the December 31, 2015, and
March 31, 2016, report dates, as
applicable, institutions may provide
reasonable estimates for any new or
revised Call Report data item initially
required to be reported as of that date
for which the requested information is
not readily available. The specific
wording of the captions for the new or
revised Call Report data items discussed
in this proposal and the numbering of
these data items should be regarded as
preliminary.

continued collection of the following
items is no longer necessary and are
proposing to eliminate them effective
December 31, 2015:
(1) Schedule RI, Memorandum items
14.a and 14.b, on other-than-temporary
impairments 5
(2) Schedule RC–C, Memorandum
items 1.f.(2), 1.f.(5), and 1.f.(6) (and
1.f.(7) on the FFIEC 031), on troubled
debt restructurings in certain loan
categories that are in compliance with
their modified terms;
(3) Schedule RC–N, Memorandum
items 1.f.(2), 1.f.(5), and 1.f.(6) (and
1.f.(7) on the FFIEC 031), on troubled
debt restructurings in certain loan
categories that are 30 days or more past
due or on nonaccrual;
(4) Schedule RC–M, items 13.a.(5)(a)
through (d) (and (e) on the FFIEC 031),
on loans in certain loan categories that
are covered by FDIC loss-sharing
agreements; and
(5) Schedule RC–N, items 11.e.(1)
through (4) (and (5) on the FFIEC 031),
on loans in certain loan categories that
are covered by FDIC loss-sharing
agreements and are 30 days or more past
due or on nonaccrual.
In addition, when Schedule RC–R,
Part II, is completed properly, item 18.b
on unused commitments to asset-backed
commercial paper conduits with an
original maturity of one year or less is
not needed because such commitments
should already have been reported in
item 10 as off-balance sheet
securitization exposures. The
instructions for item 18.b explain that
these unused commitments should be
reported in item 10 and that amounts
should not be reported in item 18.b.
Accordingly, the agencies are proposing
to delete existing item 18.b from
Schedule RC–R, Part II. Existing item
18.c of Schedule RC–R, Part II, for
unused commitments with an original
maturity exceeding one year would then
be renumbered as item 18.b.
B. New Reporting Threshold and
Increases in Existing Reporting
Thresholds

A. Deletions of Existing Data Items

In five Call Report schedules,
institutions are currently required to
itemize and describe each component of
an existing item when the component
exceeds both a specified percentage of
the item and a specified dollar amount.6
Based on a preliminary evaluation of the
existing reporting thresholds, the
agencies have concluded that the dollar
portion of the thresholds that currently

Based on the agencies’ review of the
information that institutions are
required to report in the Call Report, the
agencies have determined that the

5 Institutions would continue to complete
Schedule RI, Memorandum item 14.c, on net
impairment losses recognized in earnings.
6 See footnote 3.

III. Discussion of Proposed Call Report
Revisions

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apply to these items can be increased to
provide a reduction in reporting burden
without a loss of data that would be
necessary for supervisory or other
public policy purposes. The percentage
portion of the existing thresholds would
not be changed. Accordingly, the
agencies are proposing to raise from
$25,000 to $100,000 the dollar portion
of the threshold for itemizing and
describing components of:
(1) Schedule RI–E, item 1, ‘‘Other
noninterest income;’’
(2) Schedule RI–E, item 2, ‘‘Other
noninterest expense;’’
(3) Schedule RC–F, item 6, ‘‘All other
assets;’’
(4) Schedule RC–G, item 4, ‘‘All other
liabilities;’’
(5) Schedule RC–Q, Memorandum
item 1, ‘‘All other assets;’’ and
(6) Schedule RC–Q, Memorandum
item 2, ‘‘All other liabilities.’’
The agencies also are proposing to
raise from $25,000 to $1,000,000 the
dollar portion of the threshold for
itemizing and describing components of
‘‘Other trading assets’’ and ‘‘Other
trading liabilities’’ in Schedule RC–D,
Memorandum items 9 and 10.
In addition, because institutions with
less than $1 billion in total assets
typically do not provide support for
asset-backed commercial paper
conduits, the agencies are proposing to
exempt such institutions from
completing Schedule RC–S,
Memorandum items 3.a.(1), 3.a.(2),
3.b.(1), and 3.b.(2), on credit
enhancements and unused liquidity
commitments provided to asset-backed
commercial paper conduits.
These proposed threshold changes
would take effect December 31, 2015.
C. Instructional Revisions
The following proposed instructional
revisions would take effect December
31, 2015.
1. Reporting Home Equity Lines of
Credit that Convert From Revolving to
Non-Revolving Status
Institutions report the amount
outstanding under revolving, open-end
lines of credit secured by 1–4 family
residential properties (commonly
known as home equity lines of credit or
HELOCs) in item 1.c.(1) of Schedule
RC–C, Part I, Loans and Leases. Closedend loans secured by 1–4 family
residential properties are reported in
Schedule RC–C, Part I, item 1.c.(2)(a) or
(b), depending on whether the loan is a
first or a junior lien.7
7 Information also is separately reported for openend and closed-end loans secured by 1–4 family
residential properties in Schedule RI–B, Part I,

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A HELOC is a line of credit secured
by a lien on a 1–4 family residential
property that generally provides a draw
period followed by a repayment period.
During the draw period, a borrower has
revolving access to unused amounts
under a specified line of credit. During
the repayment period, the borrower can
no longer draw on the line of credit, and
the outstanding principal is either due
immediately in a balloon payment or is
repaid over the remaining loan term
through monthly payments. The Call
Report instructions do not address the
reporting treatment for a home equity
line of credit when it reaches its end-ofdraw period and converts from
revolving to nonrevolving status. Such a
loan no longer has the characteristics of
a revolving, open-end line of credit and,
instead, becomes a closed-end loan. In
the absence of instructional guidance
that specifically addresses this situation,
the agencies have found diversity in
how these credits are reported in
Schedule RC–C, Part I. Some
institutions continue to report home
equity lines of credit that have
converted to non-revolving closed-end
status in item 1.c.(1) of Schedule RC–C,
Part I, as if they were still revolving
open-end lines of credit, while other
institutions recategorize such loans and
report them as closed-end loans in item
1.c.(2)(a) or (b), as appropriate.
Therefore, to address this absence of
instructional guidance and promote
consistency in reporting, the agencies
are proposing to clarify the instructions
for reporting loans secured by 1–4
family residential properties to specify
that after a revolving open-end line of
credit has converted to non-revolving
closed-end status, the loan should be
reported in Schedule RC–C, Part I, item
1.c.(2)(a) or (b), as appropriate. In
proposing this clarification, the agencies
request comment on whether an
instructional requirement to
recategorize HELOCs as closed-end
loans for Call Report purposes would
create difficulties for institutions’ loan
recordkeeping systems. If so,
commenters are encouraged to describe
the difficulties this recategorization
would create.

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2. Reporting Treatment for Securities for
Which a Fair Value Option Is Elected
The Call Report Glossary entry for
‘‘Trading Account’’ currently states that
‘‘all securities within the scope of the
Financial Accounting Standards Board’s
(FASB) Accounting Standards
Charge-offs and Recoveries on Loans and Leases;
Memorandum items in Schedule RC–C, Part I;
Schedule RC–D; Schedule RC–M; and Schedule
RC–N.

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Codification (ASC) Topic 320,
Investments-Debt and Equity Securities
(formerly FASB Statement No. 115,
‘‘Accounting for Certain Investments in
Debt and Equity Securities’’), that a
bank has elected to report at fair value
under a fair value option with changes
in fair value reported in current
earnings should be classified as trading
securities.’’ This reporting treatment
was based on language contained in
former FASB Statement No. 159, ‘‘The
Fair Value Option for Financial Assets
and Financial Liabilities,’’ but that
language was not codified when
Statement No. 159 was superseded by
current ASC Topic 825, Financial
Instruments. Thus, under U.S. GAAP as
currently in effect, the classification of
all securities within the scope of ASC
Topic 320 that are accounted for under
a fair value option as trading securities
is no longer required. Accordingly, to
bring the ‘‘Trading Account’’ Glossary
entry into conformity with current U.S.
GAAP, the agencies are proposing to
revise the statement from the Glossary
entry quoted above by replacing
‘‘should be classified’’ with ‘‘may be
classified.’’
This revision to the ‘‘Trading
Account’’ Glossary entry means that an
institution that elects the fair value
option for securities within the scope of
ASC Topic 320 would be able to classify
such securities as held-to-maturity or
available-for-sale in accordance with
this topic based on the institution’s
intent and ability with respect to the
securities. In addition, an institution
could choose to classify securities for
which a fair value option is elected as
trading securities.
Institutions that have been required to
classify all securities within the scope of
ASC Topic 320 that are accounted for
under a fair value option as trading
securities also should consider the
related proposed changes to Schedule
RC–Q, Assets and Liabilities Measured
at Fair Value on a Recurring Basis,
which are discussed in Section III.E.1
below.
3. Net Gains (Losses) on Sales of, and
Other-Than-Temporary Impairments on,
Equity Securities That Do Not Have
Readily Determinable Fair Values
Institutions report investments in
equity securities that do not have
readily determinable fair values and are
not held for trading (and to which the
equity method of accounting does not
apply) in Schedule RC–F, item 4, and on
the Call Report balance sheet in
Schedule RC, item 11, ‘‘Other assets.’’ If
such equity securities are held for
trading, they are reported in Schedule
RC, item 5, and in Schedule RC–D, item

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9 and Memorandum item 7.b, if
applicable. In contrast, investments in
equity securities with readily
determinable fair values that are not
held for trading are reported as
available-for-sale securities in Schedule
RC, item 2.b, and in Schedule RC–B,
item 7, whereas those held for trading
are reported in Schedule RC, item 5, and
in Schedule RC–D, item 9 and
Memorandum item 7.a, if applicable.
In general, investments in equity
securities that do not have readily
determinable fair values are accounted
for in accordance with ASC Subtopic
325–20, Investments—Other—Cost
Method Investments (formerly
Accounting Principles Board Opinion
No. 18, ‘‘The Equity Method of
Accounting for Investments in Common
Stock’’), but are subject to the
impairment guidance in ASC Topic 320,
Investments—Debt and Equity
Securities (formerly FASB Staff Position
No. FAS 115–2 and FAS 124–2,
‘‘Recognition and Presentation of OtherThan-Temporary Impairments’’).
The Call Report instructions for
Schedule RI, Income Statement, address
the reporting of realized gains (losses),
including other-than-temporary
impairments, on held to-maturity and
available-for-sale securities as well as
the reporting of realized and unrealized
gains (losses) on trading securities and
other assets held for trading. However,
the Schedule RI instructions do not
specifically explain where to report
realized gains (losses) on sales or other
disposals of, and other-than-temporary
impairments on, equity securities that
do not have readily determinable fair
values and are not held for trading (and
to which the equity method of
accounting does not apply).
The instructions for Schedule RI, item
5.k, ‘‘Net gains (losses) on sales of other
assets (excluding securities),’’ direct
institutions to ‘‘[r]eport the amount of
net gains (losses) on sales and other
disposals of assets not required to be
reported elsewhere in the income
statement (Schedule RI).’’ The
instructions for item 5.k further advise
institutions to exclude net gains (losses)
on sales and other disposals of
securities and trading assets. The intent
of this wording was to cover securities
designated as held-to-maturity,
available-for-sale, and trading securities
because there are separate specific items
elsewhere in Schedule RI for the
reporting of realized gains (losses) on
such securities (items 6.a, 6.b, and 5.c,
respectively). Thus, the agencies are
proposing to revise the instructions for
Schedule RI, item 5.k, by clarifying that
the exclusions from this item of net
gains (losses) on securities and trading

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Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices

assets apply to held-to-maturity,
available-for-sale, and trading securities
and other assets held for trading. At the
same time, the agencies are proposing to
add language to the instructions for
Schedule RI, item 5.k, that explains that
net gains (losses) on sales and other
disposals of equity securities that do not
have readily determinable fair values
and are not held for trading (and to
which the equity method of accounting
does not apply), as well as other-thantemporary impairments on such
securities, should be reported in item
5.k. The agencies also are proposing to
remove the parenthetic ‘‘(excluding
securities)’’ from the caption for item
5.k and add in its place a footnote to
this item advising institutions to
exclude net gains (losses) on sales of
trading assets and held-to-maturity and
available-for-sale securities.

D. New and Revised Data Items and
Information of General Applicability
1. Increase in the Time Deposit Size
Threshold
Section 335 of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (Pub. L. 111–203) permanently
increased the standard maximum
deposit insurance amount (SMDIA)
from $100,000 to $250,000 effective July
21, 2010. The SMDIA had been
increased temporarily from $100,000 to
$250,000 by Section 136 of the
Emergency Economic Stabilization Act
of 2008 (Pub. L. 110–343). In response
to the increase in the limit of deposit
insurance coverage, the reporting of the
amount of ‘‘Total time deposits of
$100,000 or more’’ in Memorandum
item 2.c of Schedule RC–E, Deposit
Liabilities, was revised as of the March
31, 2010, report date. As of that date,
institutions began to separately report
their ‘‘Total time deposits of $100,000
through $250,000’’ (Memorandum item

Call report
schedule
Schedule RC–K, Quarterly
Averages.
Schedule RI, Income Statement 9.

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Schedule RC–E, Deposit Liabilities.

Current item

Item 11.b, ‘‘Time deposits of $250,000 or less’’.

Item 11.c, ‘‘Time deposits of less than $100,000’’ .........
Item 2.a.(2)(b), Interest expense on ‘‘Time deposits of
$100,000 or more’’.
Item 2.a.(2)(c), Interest expense on ‘‘Time deposits of
less than $100,000’’.
Memorandum item 3.a, ‘‘Time deposits of less than
$100,000 with a remaining maturity or next repricing
date of’’.
Memorandum item 3.b, ‘‘Time deposits of less than
$100,000 with a remaining maturity of one year or
less’’.
Memorandum item 4.a, ‘‘Time deposits of $100,000 or
more with a remaining maturity or next repricing date
of’’.
Memorandum item 4.b, ‘‘Time deposits of $100,000
through $250,000 with a remaining maturity of one
year or less’’.
Memorandum item 4.c, ‘‘Time deposits of more than
$250,000 with a remaining maturity of one year or
less’’

Item 11.c, ‘‘Time deposits of more than $250,000’’.
Item 2.a.(2)(b), Interest expense on ‘‘Time deposits of
$250,000 or less’’.
Item 2.a.(2)(c), Interest expense on ‘‘Time deposits of
more than $250,000’’.
Memorandum item 3.a, ‘‘Time deposits of $250,000 or
less with a remaining maturity or next repricing date
of’’.
Memorandum item 3.b, ‘‘Time deposits of $250,000 or
less with a remaining maturity of one year or less’’.

8 79

FR 32172, June 4, 2014.
item numbers shown for Schedule RI are
from the FFIEC 041 report form for institutions with
9 The

18:47 Sep 17, 2015

Proposed revised item

Item 11.b, ‘‘Time deposits of $100,000 or more’’ ...........

The proposed changes to Schedules
RC–K and RI would take effect March
31, 2016. The agencies are proposing to
implement the changes to Schedule RC–
E as of December 31, 2015, but comment
is specifically requested on whether
institutions’ deposit recordkeeping
systems will be able to support the
proposed change in the reporting of
maturity and repricing data in
Memorandum items 3 and 4 as of that
date.

VerDate Sep<11>2014

2.c) and their ‘‘Total time deposits of
more than $250,000’’ (Memorandum
item 2.d).
However, the reporting of the
quarterly averages, interest expense, and
maturity and repricing data for time
deposits of $100,000 or more in
Schedules RC–K, RI, and RC–E,
respectively, have not been updated to
reflect the permanent $250,000 deposit
insurance limit. In this regard, in its
comment letter to the agencies in
response to their first request for
comments under the Economic Growth
and Regulatory Paperwork Reduction
Act of 1996,8 the American Bankers
Association recommended revising the
Schedule RC–E deposit reporting items
to reflect the new FDIC insurance limit
of $250,000. Accordingly, the agencies
are proposing to revise the time deposit
size threshold that applies to the
reporting of this information to bring it
into alignment with the SMDIA. These
proposed changes are illustrated in the
following table:

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Memorandum item 4.a, ‘‘Time deposits of more than
$250,000 with a remaining maturity or next repricing
date of’’.
Memorandum item 4.b, ‘‘Time deposits of more than
$250,000 with a remaining maturity of one year or
less’’.

Each year in the March Call Report,
each institution indicates in Schedule
RC, Memorandum item 1, the most
comprehensive level of auditing work
performed by independent external
auditors during the preceding calendar
year for the institution or its parent
holding company. In completing
Memorandum item 1, each institution

selects from nine statements describing
a range of levels of auditing work the
one statement that best describes the
level of auditing work performed for it.
Certain statements from which an
institution must choose do not reflect
current auditing practices performed in
accordance with applicable standards
and procedures promulgated by the U.S.
auditing standard setters, namely the
Public Company Accounting Oversight
Board (PCAOB) and the Auditing
Standards Board (ASB) of the American

domestic offices only. On the FFIEC 031 report form
for institutions with domestic and foreign offices,

the item numbers are items 2.a.(1)(b)(2) and
2.a.(1)(b)(3).

2. Level of External Auditing Work
Performed for the Reporting Institution
During the Preceding Year

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Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices
Institute of Certified Public
Accountants. The PCAOB establishes
auditing and related professional
practice standards to be used in the
performance and reporting of audits of
the financial statements of public
companies. The ASB establishes
auditing, attestation, and quality control
standards applicable to the performance
and issuance of audit and attestation
reports for entities that are not public
companies, e.g. private companies.
The PCAOB’s Auditing Standard No.
5 (AS 5), An Audit of Internal Control
Over Financial Reporting That Is
Integrated with An Audit of Financial
Statements, became effective for fiscal
years ending on or after November 15,
2007, and provides guidance regarding
the integration of audits of internal
control over financial reporting with
audits of financial statements. To
further emphasize the integration of
these two audits, the PCAOB revised AS
5 in December 2010 by adding a
statement that ‘‘the auditor cannot audit
internal control over financial reporting
without also auditing the financial
statements.’’ Those public companies
not required to undergo an audit of
internal control over financial reporting
must have an audit of their financial
statements.
The ASB has separately provided
similar guidance in Attestation Section
501 (AT 501), An Examination of an
Entity’s Internal Control over Financial
Reporting That Is Integrated with an
Audit of Its Financial Statements, which
became effective for integrated audits
for periods ending on or after December
15, 2008. Consistent with the PCAOB,
the ASB states in AT 501 that ‘‘[t]he
examination of internal control should
be integrated with an audit of financial
statements’’ and ‘‘[a]n auditor should
not accept an engagement to review an
entity’s internal control or a written
assertion thereon.’’ Under the ASB’s
previous attestation standards, an entity
could engage an external auditor to
examine and attest to the effectiveness
of its internal control over financial
reporting without auditing the entity’s
financial statements. Thus, at present,
unless a private company is required to
or elects to have an integrated internal
control examination and financial
statement audit, the private company
may be required to or can choose to
have an external auditor perform an
audit of its financial statements, but it
may not engage an external auditor to
perform a standalone internal control
examination.
The existing wording of statements 1,
2, and 3 of Schedule RC, Memorandum
item 1, reads as follows:

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1 = Independent audit of the bank
conducted in accordance with generally
accepted auditing standards by a
certified public accounting firm which
submits a report on the bank.
2 = Independent audit of the bank’s
parent holding company conducted in
accordance with generally accepted
auditing standards by a certified public
accounting firm which submits a report
on the consolidated holding company
(but not on the bank separately).
3 = Attestation on bank management’s
assertion on the effectiveness of the
bank’s internal control over financial
reporting by a certified public
accounting firm.
Because these three statements no
longer fully and properly describe the
types of external auditing services
performed for institutions or their
parent holding companies under current
professional standards and to enhance
the information institutions provide the
agencies annually about the level of
auditing external work performed for
them, the agencies are proposing to
replace existing statements 1 and 2 with
new statements 1a, 1b, 2a, and 2b and
to eliminate existing statement 3
effective March 31, 2016. The revised
statements would read as follows:
1a = An integrated audit of the
reporting institution’s financial
statements and internal control over
financial reporting conducted in
accordance with the standards of the
American Institute of Certified Public
Accountants (AICPA) or the Public
Company Accounting Oversight Board
(PCAOB) by an independent public
accountant that submits a report on the
institution.
1b = An audit of the reporting
institution’s financial statements
conducted in accordance with auditing
standards of the AICPA or the PCAOB
by an independent public accountant
that submits a report on the institution.
2a = An integrated audit of the
reporting institution’s parent holding
company’s consolidated financial
statements and internal control over
financial reporting conducted in
accordance with the standards of the
AICPA or the PCAOB by an
independent public accountant that
submits a report on the consolidated
holding company (but not on the
institution separately).10
10 The instructions for statement 2a would
indicate this statement also applies to a reporting
institution with $5 billion or more in total assets
and a rating lower than 2 under the Uniform
Financial Institutions Rating System that is required
by Section 36(i)(1) of the Federal Deposit Insurance
Act (12 U.S.C. 1831m(i)(1)) to have its internal
control over financial reporting audited at the
institution level, but undergoes a financial

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2b = An audit of the reporting
institution’s parent holding company’s
consolidated financial statements
conducted in accordance with the
auditing standards of the AICPA or the
PCAOB by an independent public
accountant that submits a report on the
consolidated holding company (but not
on the institution separately).
3. Chief Executive Officer Contact
Information
All reporting institutions have been
requested to provide ‘‘Emergency
Contact Information’’ as part of their
Call Report submissions since
September 2002. This information
request was added to the Call Report so
that the agencies could distribute
critical, time-sensitive information to
emergency contacts at institutions
should such a need arise. The primary
contact should be a senior official of the
institution who has decision-making
authority. The primary contact may or
may not be the institution’s Chief
Executive Officer (CEO). Information for
a secondary contact also should be
provided if such a person is available at
an institution. The emergency contact
information is for the confidential use of
the agencies and is not released to the
public.
The agencies periodically need to
communicate with the CEOs of
reporting institutions via email, but they
currently do not have a complete list of
CEO email addresses that would enable
an agency to communicate directly to
institutions’ CEOs. The CEO
communications are initiated or
approved by persons at the agencies’
senior management levels and would
involve topics including new initiatives,
policy notifications, and assessment
information. For example, the FDIC
initiates distributions of deposit
insurance assessment notifications
addressed to the CEOs of insured
depository institutions, which are
posted to each institution’s FDICconnect
account. However, in the absence of an
up-to-date database of CEO email
addresses that can be used for sending
assessment notifications, the FDIC
currently sends an email to each
institution’s FDICconnect user or users
and requests that they download the
notification and any attachments, and
provide them to their CEO.
To streamline the agencies’ CEO
communication process, the agencies
are proposing to request CEO contact
information, including email addresses,
in the Call Report separately from, but
in a manner similar to, the currently
statement audit at the consolidated holding
company level.

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requested ‘‘Emergency Contact
Information’’ beginning as of December
31, 2015. As with the ‘‘Emergency
Contact Information,’’ the proposed CEO
contact information would be for the
confidential use of the agencies and
would not be released to the public. The
agencies intend for CEO email addresses
to be used judiciously and only for
significant matters requiring CEO-level
attention. Having a comprehensive
database of CEO contact information,
including email addresses, would allow
the agencies to communicate important
and time-sensitive information directly
to CEOs.
4. Reporting the Legal Entity Identifier
The Legal Entity Identifier (LEI) is a
20-digit alpha-numeric code that
uniquely identifies entities that engage
in financial transactions. The recent
financial crisis spurred the development
of a Global LEI System (GLEIS).
Internationally, regulators and market
participants have recognized the
importance of the LEI as a key
improvement in financial data systems.
The Group of Twenty (G–20) nations
directed the Financial Stability Board
(FSB) to lead the coordination of
international regulatory work and
deliver concrete recommendations on
the GLEIS by mid-2012, which in turn
were endorsed by the G–20 later that
same year. In January 2013, the LEI
Regulatory Oversight Committee (ROC),
including participation by regulators
from around the world, was established
to oversee the GLEIS on an interim
basis. With the establishment of the full
Global LEI Foundation in 2014, the ROC
continues to review and develop broad
policy standards for LEIs. The OCC, the
Board, and the FDIC are all members of
the ROC.
The LEI system is designed to
facilitate several financial stability
objectives, including the provision of
higher quality and more accurate
financial data. In the United States, the
Financial Stability Oversight Council
(FSOC) has recommended that
regulators and market participants
continue to work together to improve
the quality and comprehensiveness of
financial data both nationally and
globally. In this regard, the FSOC also
has recommended that its member
agencies promote the use of the LEI in
reporting requirements and
rulemakings, where appropriate.11
Effective beginning October 31, 2014,
the Board started requiring holding
11 Financial Stability Oversight Council 2015
Annual Report, page 14 at (http://
www.treasury.gov/initiatives/fsoc/studies-reports/
Documents/
2015%20FSOC%20Annual%20Report.pdf).

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companies to provide their LEI on the
cover pages of the FR Y–6, FR Y–7, and
FR Y–10 reports 12 only if a holding
company already has an LEI. Thus, if a
reporting holding company does not
have an LEI, it is not required to obtain
one for purposes of these Board reports.
Additionally, on July 2, 2015, the Board
published in the Federal Register notice
of final approval of a proposal to expand
the collection of the LEI to all holding
company subsidiary banking and
nonbanking legal entities reportable on
certain schedules of the FR Y–10 and in
one section of the FR Y–6 and FR Y–7
if an LEI has already been issued for the
reportable entity.13 With respect to the
Call Report, the agencies are proposing
to have institutions provide their LEI on
the cover page of the report beginning
December 31, 2015, only if an
institution already has an LEI. As with
the Board reports, an institution that
does not have an LEI would not be
required to obtain one for purposes of
reporting it on the Call Report.
5. Additional Preprinted Captions for
Itemizing and Describing Components
of Certain Items That Exceed Reporting
Thresholds
As mentioned above in Section III.B,
institutions are required to itemize and
describe each component of certain
items in five Call Report schedules
when the component exceeds both a
specified percentage of the item and a
specified dollar amount. To simplify
and streamline the reporting of these
components and thereby reduce
reporting burden, preprinted captions
have been provided for those
components of each of these items that,
based on the agencies’ review of the
components previously reported for
these items, institutions most frequently
itemize and describe. When a
preprinted caption is provided for a
particular component of an item, an
institution is not required to report the
amount of that component when the
amount falls below the applicable
reporting thresholds.
Based on the most recent review of
the component descriptions manually
entered by reporting institutions
because preprinted captions were not
available, the agencies plan to add one
new preprinted caption to Schedule RI–
E, item 1, ‘‘Other noninterest income,’’
two new preprinted captions to
Schedule RI–E, item 2, ‘‘Other
noninterest expense,’’ and three new
preprinted captions to Schedule RC–F,
12 FR Y–6, Annual Report of Holding Companies;
FR Y–7, Annual Report of Foreign Banking
Organizations; and FR Y–10, Report of Changes in
Organizational Structure (OMB No. 7100–0297).
13 80 FR 38202.

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item 6, ‘‘All other assets,’’ effective
December 31, 2015.14 The introduction
of these new preprinted captions is
intended to simplify institutions’
compliance with the requirement to
itemize and describe those components
of these items that exceed the applicable
reporting thresholds (which are being
proposed to be revised in Section II.B).
The new preprinted caption for ‘‘Other
noninterest income’’ is ‘‘Income and
fees from wire transfers.’’ The two new
preprinted captions for ‘‘Other
noninterest expense’’ are ‘‘Other real
estate owned expenses’’ and ‘‘Insurance
expenses (not included in employee
benefits, premises and fixed assets
expenses, and other real estate owned
expenses).’’ The three new preprinted
captions for ‘‘All other assets’’ are
‘‘Computer software,’’ ‘‘Accounts
receivable,’’ and ‘‘Receivables from
foreclosed government-guaranteed
mortgage loans.’’
6. Extraordinary Items
In January 2015, the FASB issued
ASU No. 2015–01, ‘‘Simplifying Income
Statement Presentation by Eliminating
the Concept of Extraordinary Items.’’
This ASU eliminates the concept of
extraordinary items from U.S. GAAP. At
present, ASC Subtopic 225–20, Income
Statement—Extraordinary and Unusual
Items (formerly Accounting Principles
Board Opinion No. 30, ‘‘Reporting the
Results of Operations’’), requires an
entity to separately classify, present,
and disclose extraordinary events and
transactions. An event or transaction is
presumed to be an ordinary and usual
activity of the reporting entity unless
evidence clearly supports its
classification as an extraordinary item.
For Call Report purposes, if an event or
transaction currently meets the criteria
for extraordinary classification, an
institution must segregate the
extraordinary item from the results of its
ordinary operations and report the
extraordinary item in its income
statement in Schedule RI, item 11,
‘‘Extraordinary items and other
adjustments, net of income taxes.’’
ASU 2015–01 is effective for fiscal
years, and interim periods within those
fiscal years, beginning after December
15, 2015. Thus, for example, institutions
with a calendar year fiscal year must
begin to apply the ASU in their Call
14 The addition of one of the new preprinted
captions to Schedule RC–F, item 6, is based on the
expected usage of a component resulting from the
FASB’s issuance of Accounting Standards Update
(ASU) No. 2014–14, ‘‘Classification of Certain
Government-Guaranteed Mortgage Loans upon
Foreclosure,’’ that is in effect for certain institutions
and will become effective for other institutions later
in 2015 or in 2016 depending, in part, of their fiscal
years.

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Reports for March 31, 2016.15 After an
institution adopts ASU 2015–01, any
event or transaction that would have
met the criteria for extraordinary
classification before the adoption of the
ASU should be reported in Schedule RI,
item 5.l, ‘‘Other noninterest income,’’ or
item 7.d, ‘‘Other noninterest expense,’’
as appropriate, unless the event or
transaction would otherwise be
reportable in another item of Schedule
RI.
Consistent with the elimination of the
concept of extraordinary items in ASU
2015–01, the agencies plan to revise the
instructions for Schedule RI, item 11,
and remove the term ‘‘extraordinary
items’’ from and revise the captions for
Schedule RI, item 8, ‘‘Income (loss)
before income taxes and extraordinary
items and other adjustments,’’ item 10,
‘‘Income (loss) before extraordinary
items and other adjustments,’’ and item
11, effective March 31, 2016. After the
concept of extraordinary items has been
eliminated and such items would no
longer be reportable in Schedule RI,
item 11, only the results of discontinued
operations would be reportable in item
11.16 Accordingly, effective March 31,
2016, the revised captions for Schedule
RI, items 8, 10, and 11, would become
‘‘Income (loss) before income taxes and
discontinued operations,’’ ‘‘Income
(loss) before discontinued operations,’’
and ‘‘Discontinued operations, net of
applicable income taxes,’’ respectively.
Similarly, the caption for Schedule RI–
E, item 3, would be changed from
‘‘Extraordinary items and other
adjustments and applicable income tax
effect’’ to ‘‘Discontinued operations and
applicable income tax effect.’’ 17
E. New and Revised Data Items of
Limited Applicability
1. Changes to Schedule RC–Q, Assets
and Liabilities Measured at Fair Value
on a Recurring Basis

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Schedule RC–Q is completed by
institutions that had:
• Total assets of $500 million or more
as of the beginning of their fiscal year;
or
• Total assets of less than $500
million as of the beginning of their fiscal
year and either:
15 Early adoption of ASU 2015–01 is permitted
provided that the guidance is applied from the
beginning of the fiscal year of adoption.
16 The outdated reference to the reporting of the
cumulative effect of certain changes in accounting
principles in the instructions for item 11, which is
inconsistent with the guidance in the Call Report
Glossary entry for ‘‘Accounting Changes,’’ would be
deleted from the instructions.
17 Items 3.c.(1) and (2) also would be removed
from Schedule RI–E.

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Æ Have elected to report financial
instruments or servicing assets and
liabilities at fair value under a fair value
option with changes in fair value
recognized in earnings, or
Æ Are required to complete Schedule
RC–D, Trading Assets and Liabilities.
Institutions required to complete
Schedule RC–Q are currently required
to treat securities they have elected to
report at fair value under a fair value
option as part of their trading securities.
As a consequence, institutions must
include fair value information for their
fair value option securities, if any, in
Schedule RC–Q two times: First, as part
of the fair value information they report
for their ‘‘Other trading assets’’ in item
5.b of the schedule, and then on a
standalone basis in item 5.b.(1),
‘‘Nontrading securities at fair value with
changes in fair value reported in current
earnings.’’ This reporting treatment
flows from the existing provision of the
Glossary entry for ‘‘Trading Account’’
that, as discussed above, requires an
institution that has elected to report
securities at fair value under a fair value
option to classify the securities as
trading securities. However, as further
discussed above, the agencies are
proposing to remove this requirement
because it is not consistent with current
U.S. GAAP. As a result, an institution’s
fair value option securities can be
classified as held-to-maturity, availablefor-sale, or trading securities in
accordance with the guidance in Topic
320, Investments-Debt and Equity
Securities.
In its current form, Schedule RC–Q
contains an item for available-for-sale
securities along with the items
identified above for ‘‘Other trading
assets,’’ which includes securities
designated as trading securities, and
‘‘Nontrading securities at fair value with
changes in fair value reported in current
earnings.’’ However, Schedule RC–Q
does not include an item for held-tomaturity securities because, given the
existing instructional requirements for
fair value option securities, the held-tomaturity category includes only
securities reported at amortized cost. By
removing the requirement to report all
fair value option securities within the
scope of ASC Topic 320 as trading
securities, as proposed earlier in this
notice, the agencies are further
proposing to replace item 5.b.(1) of
Schedule RC–Q for nontrading
securities accounted for under a fair
value option with a new item for any
‘‘Held-to-maturity securities’’ to which a
fair value option is applied. In this
regard, existing item 1 for ‘‘Availablefor-sale securities’’ would be
renumbered as item 1.b and fair value

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information for any fair value option
securities designated as ‘‘Held-tomaturity securities’’ would be reported
in a new item 1.a of Schedule RC–Q.
These changes to Schedule RC–Q would
take effect December 31, 2015.
In addition, at present, institutions
that have elected to measure loans (not
held for trading) at fair value under a
fair value option are required to report
the fair value and unpaid principal
balance of such loans in Memorandum
items 10 and 11 of Schedule RC–C, Part
I, Loans and Leases. Because Schedule
RC–C, Part I, must be completed by all
institutions, Memorandum items 10 and
11 also must be completed by all
institutions although only a nominal
number of institutions with less than
$500 million in assets have disclosed
reportable amounts for any of the
categories of fair value option loans
reported in the subitems of these two
Memorandum items. Accordingly, the
agencies are proposing to move
Memorandum items 10 and 11 on the
fair value and unpaid principal balance
of fair value option loans from Schedule
RC–C, Part I, to Schedule RC–Q effective
December 31, 2015, and to designate
them as Memorandum items 3 and 4.
With only a limited number of
institutions with less than $500 million
in assets meeting the criteria for
completing Schedule RC–Q, moving
Memorandum items 10 and 11 from
Schedule RC–C, Part I, to Schedule RC–
Q should simplify Schedule RC–C, Part
I, and thereby mitigate some of the
reporting burden associated with
Schedule RC–C, Part I.
2. Revisions to the Reporting of the
Impact on Trading Revenues of Changes
in Credit and Debit Valuation
Adjustments by Institutions With Total
Assets of $100 Billion or More
Institutions that reported average
trading assets of $2 million or more for
any quarter of the preceding calendar
year must report a breakdown of their
trading revenue (as reported in
Schedule RI, item 5.c) by underlying
risk exposure in Schedule RI,
Memorandum items 8.a though 8.e. The
five types of risk exposure are interest
rate, foreign exchange, equity security
and index, credit, and commodity and
other. Institutions required to provide
this five-way breakdown of their trading
revenue that have $100 billion or more
in total assets must also report the
‘‘Impact on trading revenue of changes
in the creditworthiness of the bank’s
derivative counterparties on the bank’s
derivative assets’’ and the ‘‘Impact on
trading revenue of changes in the
creditworthiness of the bank on the
bank’s derivative liabilities’’ in

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Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices

Schedule RI, Memorandum items 8.f
and 8.g, respectively. Memorandum
items 8.f and 8.g were intended to
capture the amounts included in trading
revenue that resulted from calendar
year-to-date changes in the reporting
institution’s credit valuation
adjustments (CVA) and debit valuation
adjustments (DVA).
The agencies have found inconsistent
reporting of CVAs and DVAs by the
institutions completing Memorandum
items 8.f and 8.g of Schedule RI, which
affects the analysis of reported trading
revenues. Some institutions report
CVAs and DVAs in these two items on
a gross basis while other institutions
report these adjustments on a net (of
hedging) basis. Furthermore, at present,
institutions may report a net CVA and
DVA of hedges under only one of the
five types of underlying risk exposures
(e.g., the overall net CVA and DVA
amount is reported entirely with trading
revenue from credit exposures) when
the net CVA and net DVA should be
properly allocated to each of the five
different underlying types of risk
exposures.
Consistent reporting of the impact on
trading revenue from year-to-date
changes in CVAs and DVAs is necessary
to ensure the accuracy of the data
available to examiners for planning and
conducting safety and soundness
examinations of institutions’ trading
activities and to the agencies for their
analyses of derivatives and trading
activities, and changes therein, at the
industry and institution level.
Furthermore, proper allocations of
CVAs and DVAs (net of hedging) to the
appropriate type of underlying risk
exposure are necessary to avoid
overstating the trading revenue from
some types of underlying risk exposure
and understating the trading revenue
from other types, which may result in
examiners and agency analysts reaching
improper conclusions about the
effectiveness of institutions’ trading
activities and their management of CVA
and DVA risks.
To enhance the quality of the trading
revenue information reported by the
largest institutions in the U.S., promote
consistency across institutions in the
reporting of CVAs and DVAs, enable
examiners to make more informed
judgments about institutions’
effectiveness in managing CVA and
DVA risks, and provide a more complete
picture of reported trading revenue, the
agencies are proposing to replace
existing Memorandum items 8.f and 8.g
of Schedule RI with a tabular set of data
items effective March 31, 2016. In this
proposed table, those institutions that
meet the criteria for completing these

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two Memorandum items (i.e.,
institutions that reported average
trading assets of $2 million or more for
any quarter of the preceding calendar
year and have $100 billion or more in
total assets) would separately present
their gross CVAs and DVAs
(Memorandum items 8.f.(1) and 8.g.(1))
and any related CVA and DVA hedging
results (Memorandum items 8.f.(2) and
8.g.(2)) by type of underlying risk
exposure. The institutions also would
report its gross trading revenue
(Memorandum item 8.h) by type of
underlying risk exposure before
including positive or negative net CVAs
and net DVAs (columns A through E).
The sum of the amounts reported in
Memorandum item 8.h, ‘‘Gross trading
revenue,’’ plus the net CVA of hedges
(the sum of columns A through E of
Memorandum item 8.f.(1) minus the
sum of columns A through E of
Memorandum item 8.f.(2)), and plus the
net DVA of hedges (the sum of the
columns A through E of Memorandum
item 8.g.(1) minus the sum of columns
A through E of Memorandum item
8.g.(2)) must equal Schedule RI, item
5.c, ‘‘Trading revenue.’’ For purposes of
this proposed tabular set of data items,
the agencies are further proposing to
require CVA and DVA amounts, as well
as their hedges, to be allocated to the
type of underlying risk exposure (e.g.,
interest rates, foreign exchange, and
equity) that gives rise to the CVA and
the DVA.
In proposing that the institutions with
assets of $100 billion or more report
expanded information on the impact on
trading revenues of changes in CVAs
and DVAs, related hedging results, and
gross trading revenues, the agencies
request comment on the availability of
these data by type of underlying risk
exposure at those institutions that
would be subject to this reporting
requirement.
3. Dually Payable Deposits in Foreign
Branches of U.S. Banks
Under the Federal Deposit Insurance
Act (FDI Act), deposit obligations
carried on the books and records of
foreign branches of U.S. banks are not
considered deposits, unless the funds
are payable both in the foreign branch
and at an office of the bank in the
United States (that is, they are dually
payable). In September 2013, the FDIC
issued a final rule amending its deposit
insurance regulations to clarify that
deposits carried on the books and
records of a foreign branch of a U.S.
bank are not insured deposits even if
they are made payable both at that
branch and at an office of the bank in

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any state of the United States.18 In
addition, the final rule provides an
exception for Overseas Military Banking
Facilities operated under Department of
Defense regulations.
The final rule does not affect the
ability of a U.S. bank to make a foreign
deposit dually payable. Should a bank
do so, its foreign branch deposits would
be treated as deposit liabilities under
the FDI Act’s depositor preference
regime in the same way as, and on an
equal footing with, domestic uninsured
deposits. In general, ‘‘depositor
preference’’ refers to a resolution
distribution regime in which the claims
of depositors have priority over (that is,
are satisfied before) the claims of
general unsecured creditors. Thus, if
deposits held in foreign branches of U.S.
banks located outside the United States
are made dually payable, that is, made
payable at both the foreign office and a
branch of the bank located in the United
States, the holders of such deposits
would receive depositor preference in
the event of the U.S. bank’s failure.
To enable the FDIC to monitor the
volume and trend of dually payable
deposits in the foreign branches of U.S.
banks, the agencies are proposing to add
a new Memorandum item 2 to Schedule
RC–E, Part II, on the FFIEC 031 Call
Report effective December 31, 2015. The
FFIEC 031 is applicable only to banks
with foreign offices. The proposed new
information on the amount of dually
payable deposits at foreign branches of
U.S. banks would enable the FDIC to
determine, as required by statute, the
least costly method of resolving a
particular bank if it fails and the
potential loss to the Deposit Insurance
Fund. This requires the FDIC to plan for
the distribution of the proceeds from the
liquidation of the failed bank’s assets,
including consideration not only of
insured deposits, but also other deposit
liabilities for purposes of depositor
preference, such as domestic uninsured
deposits and dually payable deposits in
foreign branches of the particular U.S.
bank, which take priority over general
unsecured liabilities.
4. Revisions To Implement the
Supplementary Leverage Ratio for
Advanced Approaches Institutions
Schedule RC–R, Part I, item 45,
applies to the reporting of the
supplementary leverage ratio (SLR) by
advanced approaches institutions.19 In
18 See

78 FR 56583 (September 13, 2013).
general, an advanced approaches institution
(i) has consolidated total assets (excluding assets
held by an insurance underwriting subsidiary) on
its most recent year-end regulatory report equal to
$250 billion or more; (ii) has consolidated total onbalance sheet foreign exposure on its most recent
19 In

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tkelley on DSK3SPTVN1PROD with NOTICES

the sample Call Report forms and the
Call Report instruction book for report
dates before March 31, 2015, the caption
for item 45 and the instructions for this
item both indicated that, effective for
report dates on or after January 1, 2015,
advanced approaches institutions
should begin to report their SLR in the
Call Report as calculated for purposes of
Schedule A, item 98, of the FFIEC 101,
Regulatory Capital Reporting for
Institutions Subject to the Advanced
Capital Adequacy Framework.20
However, the agencies temporarily
suspended the collection of Schedule
RC–R, Part I, item 45, before it took
effect March 31, 2015, due to
amendments to the SLR rule21 and the
need for updates to the associated SLR
data collection in the FFIEC 101.
The agencies have finalized the most
recent revisions to the SLR rule, which
requires all advanced approaches
institutions to disclose three items: the
numerator of the SLR (Tier 1 capital,
which is already reported in Call Report
Schedule RC–R), the denominator of the
SLR (total leverage exposure), and the
ratio itself.22 As part of the revisions to
the FFIEC 101, the SLR section of the
FFIEC 101 will apply only to top-tier
advanced approaches institutions
(generally, bank and savings and loan
holding companies), and not to their
subsidiary depository institutions.
Therefore, lower tier advanced
approaches depository institutions
generally will not report SLR data in the
FFIEC 101, and will need to do so in the
Call Report, which would satisfy the
SLR disclosure requirement in the
revised SLR rule.23
Thus, the agencies are proposing to
add a new item 45.a to Schedule RC–R,
Part I, in which an advanced approaches
depository institution (regardless of
year-end regulatory report equal to $10 billion or
more (excluding exposures held by an insurance
underwriting subsidiary); (iii) is a subsidiary of a
depository institution that uses the advanced
approaches to calculate its total risk-weighted
assets; (iv) is a subsidiary of a bank holding
company or savings and loan holding company that
uses the advanced approaches to calculate its total
risk-weighted assets; or (v) elects to use the
advanced approaches to calculate its total riskweighted assets.
20 OMB numbers: For the OCC, 1557–0239; for
the Board, 7100–0319; and for the FDIC, 3064–0159.
21 See 79 FR 57725 (September 26, 2014). The
amendments to the SLR rule took effect January 1,
2015.
22 See 80 FR 41409 (July 15, 2015). The disclosure
requirement is set forth in the agencies’ regulatory
capital rules (12 CFR 3.172 (OCC); 12 CFR 217.172
(Board), and 12 CFR 324.172 (FDIC)).
23 Because certain depository institutions are
exempt from filing the FFIEC 101, but must still
report their SLR components and ratio, the agencies
are proposing the depository institution-level
collection of SLR data in the Call Report rather than
in the FFIEC 101.

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parallel run status) would report total
leverage exposure as calculated under
the agencies’ SLR rule.
The agencies also are proposing to
renumber current item 45 of Schedule
RC–R, Part I, as item 45.b, to collect an
institution’s SLR. The ratio to be
reported in item 45.b would equal Tier
1 capital reported on Schedule RC–R,
Part I, item 26, divided by total leverage
exposure reported in proposed item
45.a. Renumbered item 45.b would no
longer reference the FFIEC 101 because
lower tier depository institutions would
no longer be calculating or reporting
their SLRs on the FFIEC 101.
The reporting of the proposed SLR
information would take effect March 31,
2016.
IV. Request for Comment
Public comment is requested on all
aspects of this joint notice. Comments
are 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. All comments will become
a matter of public record.
Dated: September 8, 2015.
Stuart Feldstein,
Director, Legislative and Regulatory Activities
Division, Office of the Comptroller of the
Currency.
Dated: September 11, 2015.
Michael Lewandowski,
Associate Secretary of the Board, Board of
Governors of the Federal Reserve System.
Dated at Washington, DC, this 9th day of
September, 2015.
Robert E. Feldman,
Executive Secretary, Federal Deposit
Insurance Corporation.
[FR Doc. 2015–23402 Filed 9–17–15; 8:45 am]
BILLING CODE 4810–33P; 6210–01–P; 6714–01–P

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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
Agency Information Collection
Activities: Information Collection
Renewal; Submission for OMB Review;
Procedures To Enhance the Accuracy
and Integrity of Information Furnished
to Consumer Reporting Agencies
Under the Fair and Accurate Credit
Transactions Act
Office of the Comptroller of the
Currency, Treasury.
ACTION: ACTION: Notice and request for
comment.
AGENCY:

The OCC, as part of its
continuing effort to reduce paperwork
and respondent burden, invites the
general public and other Federal
agencies to take this opportunity to
comment on a continuing information
collection, as required by the Paperwork
Reduction Act of 1995.
An agency may not conduct or
sponsor, and a respondent is not
required to respond to, an information
collection unless it displays a currently
valid OMB control number.
The OCC is soliciting comment
concerning the renewal of its
information collection titled,
‘‘Procedures to Enhance the Accuracy
and Integrity of Information Furnished
to Consumer Reporting Agencies under
the Fair and Accurate Credit
Transactions Act (FACT Act).’’ The OCC
also is giving notice that it has sent the
collection to OMB for review.
DATES: Comments must be received by
October 19, 2015.
ADDRESSES: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by
email, if possible. Comments may be
sent to: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, Attention:
1557–0238, 400 7th Street SW., Suite
3E–218, Mail Stop 9W–11, Washington,
DC 20219. In addition, comments may
be sent by fax to (571) 465–4326 or by
electronic mail to [email protected].
You may personally inspect and
photocopy comments at the OCC, 400
7th Street SW., Washington, DC 20219.
For security reasons, the OCC requires
that visitors make an appointment to
inspect comments. You may do so by
calling (202) 649–6700 or, for persons
who are deaf or hard of hearing, TTY,
(202) 649–5597. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and submit to security screening in
SUMMARY:

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