FFIEC101_20180731_omb_emergency

Supporting Statement for the
Regulatory Capital Reporting for Institutions Subject to the
Advanced Capital Adequacy Framework
(FFIEC 101; OMB No. 7100-0319)
Summary
The Board of Governors of the Federal Reserve System (Board) requests approval from
the Office of Management and Budget (OMB) to revise the Federal Financial Institutions
Examination Council (FFIEC) Regulatory Capital Reporting for Institutions Subject to the
Advanced Capital Adequacy Framework (FFIEC 101; OMB No. 7100-0319) under the
emergency clearance provisions of OMB’s regulations. This report must be filed quarterly by
certain large or internationally active state member banks, bank holding companies (BHCs),
savings and loan holding companies (SLHCs), intermediate holding companies (IHCs), and also
for those institutions that adopt the framework on a voluntary basis. The revisions to the
FFIEC 101 that are the subject of this request have been approved by the FFIEC, of which the
Board, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the
Currency (OCC) (the agencies) are members. The FDIC and the OCC have also submitted a
similar request for OMB review to request this information from banks under their supervision.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act),
the Federal Deposit Insurance Act (FDI Act) and the International Lending Supervision Act of
1983 (ILSA) require the agencies to have risk-based capital requirements and to ensure that
banks maintain adequate capital. The Board uses these data to assess and monitor the levels and
components of each reporting entity’s risk-based capital requirements and the adequacy of the
entity’s capital under the framework. These data also allow the Board to evaluate the
quantitative impact and competitive implications of the framework on individual respondents
and on the financial industry. The reporting schedules also assist banks in understanding
expectations surrounding the system development necessary for implementation and validation
of the framework. The submitted data that is released publicly also provide other interested
parties with information about banks’ risk-based capital. Finally, the submitted data supplement
on-site examination processes.
The Board proposes to revise the FFIEC 101 to allow institutions subject to the advanced
approaches rule to estimate and report high volatility commercial real estate (HVCRE) exposures
on Schedules B and G of the FFIEC 101 in a manner consistent with section 214 of the
Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).1 These
revisions would be effective for the June 30, 2018, report date. The current total annual burden
for the FFIEC 101 is estimated to be 59,576 hours and would remain unchanged based on the
proposed revisions.
Background and Justification
Section 171 (12 USC 5371(b)(1)-(2)) of the Dodd-Frank Act requires the appropriate
Federal banking agencies to establish minimum risk-based and leverage capital requirements on
1

See 12 CFR 217, Subpart E.

a consolidated basis for insured depository institutions, depository institution holding companies,
and non-bank financial companies supervised by the Board. Section 1831(o) of the FDI Act
requires each Federal banking agency to adopt a risk- based capital requirement, which is based
on the prompt corrective action framework in that section. The ILSA (12 U.S.C. 3907(a)(1))
mandates that each Federal banking agency require banks to achieve and maintain adequate
capital by establishing minimum levels of capital or by other methods that the appropriate federal
banking agency may deem appropriate. Section 908 of the ILSA (12 U.S.C. 3907(b)(3)(C)) also
directs the Chairman of the Board and the Secretary of the Treasury to encourage governments,
central banks, and regulatory authorities of other major banking countries to work toward
maintaining and, where appropriate, strengthening the capital bases of banking institutions
involved in international lending.
U.S. risk-based capital requirements are based on an internationally agreed framework
for capital measurement that was developed by the Basel Committee on Banking Supervision
(BCBS) and endorsed by the central-bank governors of the Group of Ten (G-10)2 Countries in
1988. Although the 1988 Accord has been a stabilizing force for the international banking
system, the world financial system has become increasingly more complex. The BCBS
developed a new regulatory capital framework that recognizes new developments in financial
products, incorporates advances in risk measurement and management practices, and more
precisely assesses capital charges in relation to risk. In April 2003, the BCBS released for public
comment a document entitled The New Basel Capital Accord that set forth proposed revisions to
the 1988 Accord. Also, the agencies participated with other members of the BCBS during the
development of the Basel II Capital Accord, which was issued in June 2004. The agencies also
participated in the Fourth Quantitative Impact Study during the fall and winter of 2004-2005
(QIS 4; OMB No. 7100-0303), to better understand the potential impact of the proposed
framework on the risk-based capital requirements for banks. The New Basel Capital Accord was
superseded by the Basel III Accord, which was published by the BCBS in December 2010.
On October 11, 2013, the agencies published a final rule in the Federal Register, entitled
Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy,
Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-weighted
Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based
Capital Rule, and Market Risk Capital Rule.3 This final rule was based on the Basel III Accord
and recognized developments in financial products, incorporated advances in risk measurement
and management practices, and imposed capital requirements that are generally more sensitive to
risk. In particular, the final rule required banks to assign risk parameters to exposures and
provides specific risk-based capital formulas that would be used to transform these risk
parameters in to risk-based capital requirements.
Included within the final rule are requirements for public disclosure of certain
information at the consolidated banking organization level as well as a reference to certain
additional regulatory reporting requirements for banks and BHCs. The additional regulatory
2

The Group of Ten is made up of eleven industrial countries (Belgium, Canada, France, Germany, Italy, Japan, the
Netherlands, Sweden, Switzerland, the United Kingdom, and the United States) which consult and cooperate on
economic, monetary and financial matters.
3
See 12 CFR 217.

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reporting requirements referenced within the final rule, and described more fully herein,
comprise the agencies’ regulatory reporting requirements. Effective with the March 31, 2014,
report date, the agencies incorporated the Basel III capital disclosure template in its entirety
consistent with the revised regulatory capital rules and revised advanced approaches rules to
calculate risk-weighted assets.
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The Board uses the data collected to:
Assess the components of each bank’s risk-based capital requirements,
Assess each bank’s capital relative to inherent risks and the Board’s minimum capital
requirements,
Monitor the levels and components of the risk-based capital requirements for banks
through peer, outlier, and risk trend analyses,
Evaluate the quantitative impact and competitive implications of the implementation of
the framework on risk-based capital levels within reporting banks and on an overall
industry basis,
Provide market participants, depositors, the public, supervisors, and other interested
parties with information about banks’ risk-based capital, and
Supplement on-site examination processes and decisions pertaining to the allocation of
supervisory resources.

In addition, this framework assists supervised institutions in understanding expectations
surrounding the system development necessary for implementation and validation of the
framework.
The Board monitors and assesses internationally active banks’ conformance with capital
adequacy standards and understand the capital resulting from the implementation of the
framework. The general risk-based regulatory capital data submitted by internationally active
banks and BHCs does not provide enough relevant information regarding risk-based capital
under the framework. Because 12 CFR 217 includes transitional arrangements that involve
capital floors linked to the general risk-based capital rules, it is necessary to require data
submissions under both the general risk-based capital rules and advanced risk-based capital
frameworks for as long as a bank is subject to risk-based capital floors.
As noted in the final rule, the Board conducts analyses to gauge the impact of the
framework, and the preparedness of banks to compute risk-based capital consistent with those
requirements, during the parallel run and transitional floor periods. Data submitted through these
reporting requirements, combined with dual reporting requirements for the general risk-based
capital data, provides quantitative support for these impact analyses. Such analyses also helps
the Board evaluate the competitive and cyclical implications of the framework relative to capital
requirements for banks subject to the general risk-based capital rules and the adequacy of capital
generated under the framework. General risk-based capital data are currently captured in the
Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and
FFIEC 051; OMB No. 7100-0036) and Consolidated Financial Statements for Holding
Companies (FR Y-9C; OMB No. 7100-0128).
The FFIEC 101 is necessary to ensure that the new risk-based regulatory capital

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framework is implemented in the United States in a safe and sound manner. There is no other
reporting form that collects from all banks and BHCs the information that is gathered through the
FFIEC 101.
Description of Information Collection
Who Must Report
The FFIEC 101 information collections are mandatory for institutions using the advanced
approaches risk-based capital rule (advanced approaches banking organizations): national banks
(12 U.S.C. 161), state member banks and bank holding companies (12 U.S.C. 324 and 12 U.S.C.
1844(c)), savings and loan holding companies (12 U.S.C. 1467a(b)), intermediate holding
companies (12 U.S.C. 1844(c), 12 U.S.C 3106 and 3108(a), 12 U.S.C. 5365, 12 CFR
252.153(b)(2)), insured state nonmember commercial and savings banks (12 U.S.C. 1817), and
savings associations (12 U.S.C. 1464).
Overview of the Data Collection
Respondents are required to submit detailed data on the components of their capital and
risk-weighted assets in nineteen schedules (A through S). A limited portion of this data is
publicly available (Schedules A and B and data items 1 and 2 of Schedule S). The majority of
the data is not publicly available.
Publicly Available Data
Schedules A and B (and data items 1 and 2 of proposed Schedule S, Operational Risk)
include data items that are publicly available for each reporting entity for reporting periods
subsequent to its parallel run period. Schedule A contains information about the components of
Tier 1 capital, Tier 2 capital, and adjustments to regulatory capital as defined within the rule.
Schedule B contains summary information about risk-weighted assets by risk type, and, in the
case of credit risk exposures, outstanding balances and aggregated information about the drivers
and estimates that underlie the calculation of risk-weighted assets.
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The general exposure breakdowns in Schedule B are as follows:
Wholesale Exposures, including separate reporting for the following types of exposures:
Corporate; Bank; Sovereign; Income Producing Real Estate; High Volatility Commercial
Real Estate; Eligible Margin Loans, Repo-Style Transactions, and OTC Derivatives with
Cross Product Netting; Eligible Margin Loans, Repo-Style Transactions, and OTC
Derivatives without Cross Product Netting,
Retail Exposures, including separate reporting for the following types of exposures:
Residential Mortgage Closed-end First Liens, Residential Mortgage Closed-end Junior
Liens, Residential Mortgage Revolving Exposures, Qualifying Revolving Exposures, and
Other Retail Exposures,
Securitization Exposures,
Cleared Transactions,
Equity Exposures,

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Other Assets,
Excess Eligible Credit Reserves Not Included in Tier 2 Capital,
Market Risk Equivalent Assets, and
Operational Risk.

Some of the aggregate data items submitted in Schedule B are derived from information
contained in the more detailed confidential supporting schedules described below. The data
contained in Schedule B describe the main summary-level components of banks’ risk-weighted
assets, but would not allow users to exactly replicate banks’ risk-weighted asset calculations
since the data are averaged, weighted, and rounded.
Schedule S shows the data items within the operational risk exposure class that banks
submit. Data items 1 and 2 are publicly available and include high-level information on
operational risk capital, expected operational loss, eligible operational risk offsets, and total riskbased capital requirements for operational risk.
The intent of these disclosures is to provide market participants, depositors, supervisors,
the public, and other interested parties with a sufficient level of detail (comparable, in principle,
to risk-based capital information collected currently) about banks’ major capital and riskweighted asset components as well as summary information about the composition of regulatory
capital and the risk parameters that underlie risk-weighted asset calculations.
Non-publicly Available Data
The data items contained in Schedules C through S describe the main components of
banks’ risk-weighted assets and are essentially expanded detail of the more summary information
contained in the public data items shown in Schedule B. The data submitted in these schedules
are not made available to the public (except for data items 1 and 2 of Schedule S, Operational
Risk). Supervisors request these data to support comparisons of certain critical capital drivers
across banks and across time. For the reasons cited previously, however, the information
contained in the columns of the tables would not allow users to exactly replicate banks’ riskweighted asset calculations. A brief description of the content of Schedules C through S follows.
Wholesale Exposures. Schedules C through J show data items within the wholesale
exposure category that are submitted. Each schedule represents a sub-portfolio of the wholesale
exposure category as listed on the public Schedule B. For each reported sub-portfolio, the
schedule groups exposures into sub-portfolio segments using supervisor-defined probability of
default (PD) ranges. The reported cells within these schedules then describe the main risk
parameters and characteristics of each sub-portfolio segment.
Retail Exposures. Schedules K through O show data items within the retail exposure
category that are submitted. Again, each schedule represents a sub-portfolio of the retail
exposure category as listed on the public Schedule B. PD ranges are used to sub-divide each
sub- portfolio into segments.4 The reported cells within these schedules then describe the main
4

Unlike the wholesale credit exposure reporting schedules, the PD ranges for retail exposures differ from subportfolio to sub-portfolio.

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risk parameters and characteristics of each sub-portfolio segment. The retail schedules also
incorporate risk characteristics that are believed to be commonly used drivers within banks’ risk
management and measurement processes, including the distribution of each sub-portfolio
segment by loan-to-value ranges (applies only to real estate exposures), weighted average credit
bureau score, and weighted average account age.5
Securitization Exposures. Schedules P shows data items within the securitization
exposure class that are submitted. Schedule P provides information by rating categories about
exposures subject to either the Ratings-Based Approach (RBA) or the Internal Assessment
Approach (IAA).
Cleared Transactions. Schedule Q provides information on cleared transactions relating
to exposures to clearing member client banks, clearing member banks, qualifying central
counterparties (QCCPs), and non-QCCPs.
Equities. Schedule R provides information about a bank’s equity exposures by type of
exposure and by approach to measuring required capital. Schedule R also provides information
on equity exposures subject to specific risk weights and equity exposures to investment funds. A
bank also completes the appropriate section of the schedule based on whether it uses a simple
risk-weight approach, a full internal models approach, or a partially modeled approach to
measuring required capital for equity exposures.
Operational Risk. Schedule S shows the data items within the operational risk exposure
class that banks submit. Data items submitted in this schedule, which are confidential, include
various details about historical operational losses, on a stand-alone and group-wide basis, for the
current reporting period and those historical operational losses used to model operational risk
capital. The schedule also contains confidential data items related to scenarios, distribution
assumptions, and loss caps used to model operational risk capital.
Proposed Revisions
The agencies propose under the emergency clearance provisions of OMB’s regulations to
revise the FFIEC 101 for the June 30, 2018, report date. The agencies have determined that
(1) the collection of information within the scope of this request is needed prior to the expiration
of time periods established under 5 CFR 1320.10, (2) this collection of information is essential to
the mission of the agencies, and (3) the agencies cannot reasonably comply with the normal
clearance procedures because an unanticipated event has occurred and the use of normal
clearance procedures is reasonably likely to prevent or disrupt the collection of information.
These revisions arise from Congressional enactment of the Economic Growth,
Regulatory Relief, and Consumer Protection Act (EGRRCPA). Section 214 of EGRRCPA
requires the agencies to revise the definition of high volatility commercial real estate (HVCRE)
exposures that institutions use to calculate risk-weighted assests and, hence, risk-based capital
ratios. This provision became effective automatically when the law was signed on May 24,
5

For qualifying revolving exposures and other (non-mortgage) retail exposures, the exposure at default (EAD) of
accounts under two years old is reported instead of weighted average age for each sub-portfolio exposure segment.

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2018.
The agencies must receive data from the quarterly FFIEC 101 report to assess and
monitor the levels and components of each reporting entity’s risk-based capital requirements and
the adequacy of the entity’s capital under the framework. The next reports are due at the end of
August 2018, based on information available as of June 30, 2018. In order for the agencies to
implement section 214 as required by law, the agencies cannot comply with the normal clearance
process and still receive the June 30, 2018, financial data in a timely manner.
HVCRE
Section 214 of EGRRCPA adds a new section 51 to the FDI Act governing the risk-based
capital requirements for certain acquisition, development, or construction (ADC) loans. The
agencies may only require a depository institution to assign a heightened risk weight to an
HVCRE exposure if such exposure is an “HVCRE ADC Loan,” as defined in section 214 of
EGRRCPA.
Section 214 of EGRRCPA also impacts “HVCRE ADC Loans” on the Call Report and
FR Y-9C, and the proposed revisions described below are also being proposed or implemented
for the Call Report and FR Y-9C. To avoid the regulatory burden associated with applying
different definitions for HVCRE exposures within a single organization, the agencies propose to
allow an institution subject to the advanced approaches rule to estimate and report HVCRE
exposures on Schedules B and G of the FFIEC 101 using the definition under section 214
effective for the June 30, 2018, report date. Institutions may refine their estimates in good faith
as they obtain additional information, but they will not be required to amend FFIEC 101 reports
previously filed for report dates on or after June 30, 2018, as these estimates are adjusted.
Alternatively, institutions may report HVCRE exposures in a manner consistent with the current
definition contained in the agencies’ regulatory capital rules, until the agencies take further
action.
Time Schedule for Information Collection
The FFIEC 101 is collected quarterly as of the end of the last calendar day of March,
June, September, and December. Reporting holding companies (HCs) and banks submit data
quarterly because efforts to monitor banks’ progress toward, and actions under, the framework
require regular and consistent data submissions from all of the institutions adopting this
framework. The first reporting period for Schedules A through S for each reporting entity
seeking to qualify for the advanced approaches corresponds to the first quarter of its parallel run
period.
The report due dates are 60 days following the end of a quarter while a state member
bank or HC is in its parallel run period. After completing its parallel run period, the report due
dates are the same as the report due dates currently required of banks and HCs when filing their
respective Call Report or FR Y-9C. State member banks must submit the FFIEC 101 to the
appropriate Federal Reserve Bank within thirty calendar days following the as-of date; a five-day
extension may be given to banks with more than one foreign office. HCs must submit the

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FFIEC 101 to the appropriate Federal Reserve Bank within forty calendar days after the
March 31, June 30, and September 30 as of dates unless that day falls on a weekend or holiday
and within forty-five calendars days after the December 31 as of date.
Individual respondent data, excluding confidential information, would be available on the
National Information Center public website.
Legal Status
Section 9(6) of the Federal Reserve Act for state member banks (12 U.S.C. 324), section
5(c) of the Bank Holding Company Act for BHCs and IHCs (12 U.S.C. 1844(c)), the
Homeowners’ Loan Act for savings and loan holding companies (12 U.S.C. 1467a(b)(2)), and
section 165 of the Dodd-Frank Act for IHCs (12 U.S.C. 5365) authorize the Board to require the
information collection. The FFIEC 101 is mandatory for advanced approaches banking
organizations.
Some items collected as part of the FFIEC 101 will be made public upon filing. For these
items, the issue of confidentiality will not arise unless the submitter asks for confidential
treatment and provides a basis to withhold the information as confidential commercial
information whose disclosure would cause substantial competitive harm, justifying confidential
treatment under exemption 4 of the Freedom of Information Act (FOIA). Such requests would
have to be considered on a case-by-case basis.
Some items are withheld during the so-called “parallel run” period, but released publicly
thereafter. These include Schedule A, Schedule B, and items 1-2 in Schedule S, Operational
Risk. Schedule A collects information about the components of tier 1 capital, tier 2 capital,
adjustments to regulatory capital, regulatory capital ratios, and capital buffer. Schedule B
contains summary information about risk-weighted assets by risk type, and, in the case of credit
risk exposures, outstanding balances and aggregated information about the estimates that
underlie the calculation of risk-weighted assets. Schedule S collects data related to operational
risk under the agencies’ advanced approaches rules.
The parallel run period is designed in significant part to allow the supervisory agencies to
assess the quality of a banking organization’s internal models and systems and determine
whether the banking organization is ready for the implementation of the advanced approaches.
During the parallel run period, supervisors may request a banking organization to amend its
internal models, risk measurement and management infrastructure. Public disclosure of these
schedule items during the parallel run period could lead investors, competitors, and the public to
misjudge the financial health of the institutions, when in fact there has been no change to their
underlying fundamentals and, therefore, could result in substantial competitive harm. The
specific items treated as confidential during the parallel run period are Schedule A items 78, 79,
86, 87, 88, 89, and 90, as well as Schedules B through S. These classes of data may be protected
from disclosure during the parallel run period under exemption 4 of the FOIA.
Finally, Schedules C through S would remain confidential both during and after the
parallel run period. The data items found in these schedules contain more detailed information

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than included in the public schedules, including sensitive information breaking down individual
banking organization exposures to borrowers by probability of default, exposures at default, and
loss given default. Disclosure of this information could result in substantial competitive harm to
the institution, particularly because many financial institutions will not be reporting such data,
and would benefit from the public disclosure of such detailed information regarding their
competitors they would not be required to disclose themselves. Accordingly, FOIA exemption 4
permits confidential treatment for these data items.
Consultation Outside the Agency
The Board coordinated and consulted with the FDIC and OCC in proposing these
revisions. The agencies will follow this request for emergency processing with a request under
normal clearance procedures, during which comments will be solicited for the typical 60-day and
30-day periods. All comments received on paperwork burden, whether during the 60-day or
30-day comment periods, will be considered in finalizing the collection.
Estimate of Respondent Burden
The current total annual burden for the FFIEC 101 is estimated to be 59,576 hours and
would remain unchanged based on the proposed revisions. These reporting requirements
represent less than 1 percent of the total Federal Reserve paperwork burden.
Number of
respondents6

FFIEC 101
SMBs

6

BHCs and SLHCs
IHCs

Estimated
Estimated
Annual
average hours annual burden
frequency
per response
hours
4
674
16,176

16

4

677

43,328

6

4

3

72

Total

59,576

The current cost to the public for this information collection is estimated to be $3,339,235.7
Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.
6

Of the respondents, none are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $550 million in total assets) www.sba.gov/document/support--table-size-standards.
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Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $18, 45% Financial Managers at
$69, 15% Lawyers at $68, and 10% Chief Executives at $94). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2017, published March 30, 2018, www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined using
the BLS Occupational Classification System, www.bls.gov/soc/.

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Estimate of Cost to the Federal Reserve System
The current cost to the Federal Reserve System for collecting and processing the
FFIEC 101 is estimated to be $157,700 per year.

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