60-Day Federal Register Notice

Federal Register / Vol. 84, No. 193 / Friday, October 4, 2019 / Notices
FMCSA ensures that PII in the
National Registry system is protected by
reasonable security safeguards against
loss or unauthorized access, destruction,
usage, modification, or disclosure.
These safeguards incorporate standards
and practices required for Federal
information systems under the Federal
Information System Management Act
and are detailed in Federal Information
Processing Standards Publication 200,
Minimum Security Requirements for
Federal Information and Information
Systems, dated March 2006, NIST
Special Publication 800–53 Rev. 3, and
Recommended Security Controls for
Federal Information Systems and
Organizations, dated August 2009.
FMCSA has a comprehensive
information security program that
contains management, operational, and
technical safeguards that are appropriate
for the protection of PII. These
safeguards are designed to achieve the
following objectives:
• Ensure the security, integrity, and
confidentiality of PII
• Protect against any reasonably
anticipated threats or hazards to the
security or integrity of PII
• Protect against unauthorized access
to or use of PII
The National Registry is more
thoroughly in the associated Privacy
Impact Assessment (PIA). The PIA can
be found on the DOT Privacy website at
http://transportation.gov/privacy. This
updated system will be included in
DOT’s inventory of record systems.

10. You must sign your request, and
your signature must either be notarized
or submitted under 28 U.S.C. 1746, a
law that permits statements to be made
under penalty of perjury as a substitute
for notarization. While no specific form
is required, you may obtain forms for
this purpose from the Chief Freedom of
Information Act Officer, http://
www.transportation.gov/foia or
202.366.4542. In addition you should
provide the following:
An explanation of why you believe
the Department would have information
on you;
• Identify which component(s) of the
Department you believe may have the
information about you;
• Specify when you believe the
records would have been created;
• Provide any other information that
will help the FOIA staff determine
which DOT component agency may
have responsive records; and
If your request is seeking records
pertaining to another living individual,
you must include a statement from that
individual certifying his/her agreement
for you to access his/her records.
Without this bulleted information the
component(s) may not be able to
conduct an effective search, and your
request may be denied due to lack of
specificity or lack of compliance with
applicable regulations.
EXEMPTIONS CLAIMED FOR THE SYSTEM:

None.
HISTORY:

RECORD ACCESS PROCEDURES:

77 FR 24247—April 23, 2012.

See ‘‘Notification procedure’’ above.
CONTESTING RECORD PROCEDURES:

DISCLOSURE TO CONSUMER REPORTING
AGENCIES:

None.

See ‘‘Notification procedure’’ above.

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NOTIFICATION PROCEDURES:

Individuals seeking notification of
and access to any record contained in
this system of records, or seeking to
contest its content, may submit a
request in writing to the DOT FOIA
officer whose contact information can
be found at http://
www.transportation.gov/foia under
‘‘Contact Us.’’ If an individual believes
more than one component maintains
Privacy Act records concerning him or
her, the individual may submit the
request to the Departmental Freedom of
Information Act Office, U.S. Department
of Transportation, Room W94–122, 1200
New Jersey Ave. SE, Washington, DC
20590, ATTN: Privacy Act request.
When seeking records about yourself
from this system of records or any other
Departmental system of records your
request must conform with the Privacy
Act regulations set forth in 49 CFR part

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Issued in Washington, DC, on September
27, 2019.
Claire W. Barrett,
Departmental Chief Privacy Officer.
[FR Doc. 2019–21412 Filed 10–3–19; 8:45 am]
BILLING CODE 4910–9X–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

AGENCY:

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Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Joint notice and request for
comment.
In accordance with the
requirements of the Paperwork
Reduction Act of 1995 (PRA), the OCC,
the Board, and the FDIC (the
‘‘agencies’’) may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(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 revise and
extend the Consolidated Reports of
Condition and Income (Call Reports)
(FFIEC 031, FFIEC 041, and FFIEC 051)
and the Regulatory Capital Reporting for
Institutions Subject to the Advanced
Capital Adequacy Framework (FFIEC
101), which are currently approved
collections of information. The
proposed revisions to the Call Reports
and the FFIEC 101 would implement
various changes to the agencies’ capital
rule that the agencies have finalized or
are considering finalizing. In addition,
the agencies are proposing a change in
the scope of the FFIEC 031 Call Report
as well as an instructional revision for
the reporting of operating lease
liabilities in the Call Reports, both of
which would take effect March 31,
2020, and a Call Report instructional
revision for home equity lines of credit
that convert from revolving to nonrevolving status that would take effect
March 31, 2021.
DATES: Comments must be submitted on
or before December 3, 2019.
ADDRESSES: Interested parties are
invited to submit written comments to
any or all of the agencies. All comments,
which should refer to the ‘‘Call Report
and FFIEC 101 Reporting Revisions,’’
will be shared among the agencies.
OCC: You may submit comments,
which should refer to ‘‘Call Report and
FFIEC 101 Reporting Revisions,’’ by any
of the following methods:
• Email: [email protected].
• Mail: Chief Counsel’s Office, Office
of the Comptroller of the Currency,
Attention: 1557–0081 and 1557–0239,
400 7th Street SW, Suite 3E–218,
Washington, DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘1557–
SUMMARY:

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53228

Federal Register / Vol. 84, No. 193 / Friday, October 4, 2019 / Notices

0081 and 1557–0239’’ in your comment.
In general, the OCC will publish
comments on www.reginfo.gov without
change, including any business or
personal information provided, such as
name and address information, email
addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
information collection beginning on the
date of publication of the second notice
for this collection by any of the
following methods:
• Viewing Comments Electronically:
Go to www.reginfo.gov. Click on the
‘‘Information Collection Review’’ tab.
Underneath the ‘‘Currently under
Review’’ section heading, from the dropdown menu select ‘‘Department of
Treasury’’ and then click ‘‘submit.’’ This
information collection can be located by
searching by OMB control number
‘‘1557–0081’’ or ‘‘1557–0239.’’ Upon
finding the appropriate information
collection, click on the related ‘‘ICR
Reference Number.’’ On the next screen,
select ‘‘View Supporting Statement and
Other Documents’’ and then click on the
link to any comment listed at the bottom
of the screen.
• For assistance in navigating
www.reginfo.gov, please contact the
Regulatory Information Service Center
at (202) 482–7340.
• Viewing Comments Personally: You
may personally inspect comments at the
OCC, 400 7th Street SW, Washington,
DC. 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 hearing
impaired, TTY, (202) 649–5597. Upon
arrival, visitors will be required to
present valid government-issued photo
identification and submit to security
screening in order to inspect comments.
Board: You may submit comments,
which should refer to ‘‘Call Report and
FFIEC 101 Reporting Revisions,’’ by any
of the following methods:
• Agency Website: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at:
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Email: regs.comments@
federalreserve.gov. Include ‘‘Call Report
and FFIEC 101 Reporting Revisions’’ in
the subject line of the message.

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• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551.
All public comments are available on
the Board’s website at https://
www.federalreserve.gov/apps/foia/
proposedregs.aspx as submitted, unless
modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper in Room 146, 1709 New York
Avenue NW, Washington, DC 20006,
between 9:00 a.m. and 5:00 p.m. on
weekdays. For security reasons, the
Board requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 452–3684.
Upon arrival, visitors will be required to
present valid government-issued photo
identification and to submit to security
screening in order to inspect and
photocopy comments.
FDIC: You may submit comments,
which should refer to ‘‘Call Report and
FFIEC 101 Reporting Revisions,’’ by any
of the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal/.
Follow the instructions for submitting
comments on the FDIC’s website.
• Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Email: [email protected].
Include ‘‘Call Report and FFIEC 101
Reporting Revisions’’ in the subject line
of the message.
• Mail: Manuel E. Cabeza, Counsel,
Attn: Comments, Room MB–3128,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street Building
(located on F Street) on business days
between 7:00 a.m. and 5:00 p.m.
• Public Inspection: All comments
received will be posted without change
to https://www.fdic.gov/regulations/
laws/federal/ including any personal
information provided. Paper copies of
public comments may be requested from
the FDIC Public Information Center,
3501 North Fairfax Drive, Arlington, VA
22226, or by telephone at (877) 275–
3342 or (703) 562–2200.
Additionally, commenters may send a
copy of their comments to the OMB
desk officer for the agencies by mail to
the Office of Information and Regulatory
Affairs, U.S. Office of Management and
Budget, New Executive Office Building,

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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 information collections
discussed in this notice, please contact
any of the agency staff whose names
appear below. In addition, copies of the
report forms for the Call Report and the
FFIEC 101 can be obtained at the
FFIEC’s website (https://www.ffiec.gov/
ffiec_report_forms.htm).
OCC: Kevin Korzeniewski, Counsel,
Chief Counsel’s Office, (202) 649–5490,
or for persons who are deaf or hearing
impaired, TTY, (202) 649–5597.
Board: Nuha Elmaghrabi, Federal
Reserve Board Clearance Officer, (202)
452–3884, Office of the Chief Data
Officer, Board of Governors of the
Federal Reserve System, 20th and C
Streets NW, Washington, DC 20551.
Telecommunications Device for the Deaf
(TDD) users may call (202) 263–4869.
FDIC: Manuel E. Cabeza, Counsel,
(202) 898–3767, Legal Division, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Affected Reports
A. Call Reports
B. FFIEC 101
II. Current Actions
A. Simplifications Rule
1. Background
2. Proposed Revisions to Call Report
Schedule RC–R
B. Community Bank Leverage Ratio Rule
1. Background
2. Proposed Revisions to Call Report
Schedule RC–R
3. Other Proposed Call Report Revisions
Related to the CBLR
C. Proposed Tailoring Rules
1. Background
2. Proposed Revisions to Call Report
Schedule RC–R, Part I
3. Proposed Revisions to the FFIEC 101
D. Proposed Total Loss Absorbing Capacity
Holdings Rule
1. Background
2. Proposed Revisions to Call Report
Schedule RC–R, Part I
3. Proposed Revisions to Call Report
Schedule RC–R, Part II
4. Proposed Revisions to FFIEC 101
Schedule A
i. Deductions From Regulatory Capital
ii. LTD and TLAC Amounts, Ratios, and
Buffer
E. Proposed Revisions to the
Supplementary Leverage Ratio for
Certain Central Bank Deposits of
Custodial Banks
1. Background
2. Proposed Revisions to Call Report
Schedule RC–R, Part I
3. Proposed Revisions to FFIEC 101
Schedule A

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Federal Register / Vol. 84, No. 193 / Friday, October 4, 2019 / Notices
F. Proposed Standardized Approach for
Counterparty Credit Risk on Derivative
Contracts
1. Background
2. Proposed Revisions to Call Report
Schedule RC–R, Part II
3. Proposed Revisions to FFIEC 101
Schedule A, SLR Table 2
G. High Volatility Commercial Real Estate
(HVCRE) Land Development Proposal
1. Background
2. Proposed Revisions to Call Report
Schedule RC–R, Part II
3. Proposed Revisions to FFIEC 101
Schedule G
H. Operating Lease Liabilities
I. Reporting Home Equity Lines of Credit
That Convert From Revolving to NonRevolving Status
III. Timing
IV. Request for Comment

I. Affected Reports
All of the proposed changes discussed
below affect the Call Reports, while a
number of the changes also affect the
FFIEC 101. The Board will separately
propose to make corresponding
revisions to the Consolidated Financial
Statements for Holding Companies (FR
Y–9C).1
A. Call Reports
The agencies propose to extend for
three years, with revision, the FFIEC
031, FFIEC 041, and FFIEC 051 Call
Reports.
Report Title: Consolidated Reports of
Condition and Income (Call Report).
Form Number: FFIEC 031
(Consolidated Reports of Condition and
Income for a Bank with Domestic and
Foreign Offices), FFIEC 041
(Consolidated Reports of Condition and
Income for a Bank with Domestic
Offices Only, and FFIEC 051
(Consolidated Reports of Condition and
Income for a Bank with Domestic
Offices Only and Total Assets Less Than
$5 Billion).
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.
Type of Review: Revision and
extension of currently approved
collections.

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OCC
OMB Control No.: 1557–0081.
Estimated Number of Respondents:
1,152 national banks and federal savings
associations.
Estimated Average Burden per
Response: 39.74 burden hours per
quarter to file.
Estimated Total Annual Burden:
183,122 burden hours to file.
1 Consolidated

Financial Statements for Holding
Companies (FR Y–9C), OMB Number 7100–0128.

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Board
OMB Control No.: 7100–0036.
Estimated Number of Respondents:
781 state member banks.
Estimated Average Burden per
Response: 43.64 burden hours per
quarter to file.
Estimated Total Annual Burden:
136,331 burden hours to file.
FDIC
OMB Control No.: 3064–0052.
Estimated Number of Respondents:
3,419 insured state nonmember banks
and state savings associations.
Estimated Average Burden per
Response: 38.47 burden hours per
quarter to file.
Estimated Total Annual Burden:
526,116 burden hours to file.
The estimated average burden hours
collectively reflect the estimates for the
FFIEC 051, the FFIEC 041, and the
FFIEC 031 reports for each agency.
When the estimates are calculated by
type of report across the agencies, the
estimated average burden hours per
quarter are 35.38 (FFIEC 051), 49.45
(FFIEC 041), and 95.06 (FFIEC 031). The
estimated burden hours for the currently
approved reports are 40.27 (FFIEC 051),
53.72 (FFIEC 041), and 95.60 (FFIEC
031), so the revisions proposed in this
notice would represent a reduction in
estimated average burden hours per
quarter of 4.89 (FFIEC 051), 4.27 (FFIEC
041), and 0.54 (FFIEC 031). The change
in burden is predominantly due to
changes associated with the community
bank leverage ratio rule. The reduction
in average burden hours is significantly
less for the FFIEC 031 than for the
FFIEC 041 or the FFIEC 051 because
greater percentages of institutions that
would be eligible to report under the
proposed community bank leverage
ratio framework currently file the FFIEC
041 or the FFIEC 051 than the FFIEC
031.2 The estimated burden per
response for the quarterly filings of the
Call Report is an average that varies by
agency because of differences in the
composition of the institutions under
each agency’s supervision (e.g., size
distribution of institutions, types of
activities in which they are engaged,
and existence of foreign offices).
Type of Review: Extension and
revision of currently approved
collections.
Legal Basis and Need for Collections
The Call Report information
collections are mandatory: 12 U.S.C. 161
(for national banks), 12 U.S.C. 324 (for
2 For estimating burden hours, the agencies
assumed 60 percent of eligible institutions would
use the framework.

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53229

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 and text, these
information collections are not given
confidential treatment.
Banks and savings associations
submit Call Report data to the agencies
each quarter for the agencies’ use in
monitoring the condition, performance,
and risk profile of individual
institutions and the industry as a whole.
Call Report data serve a regulatory or
public policy purpose by assisting the
agencies in fulfilling their shared
missions of ensuring the safety and
soundness of financial institutions and
the financial system and protecting
consumer financial rights, as well as
agency-specific missions affecting
national and state-chartered institutions,
such as conducting monetary policy,
ensuring financial stability, and
administering federal deposit insurance.
Call Reports are the source of the most
current statistical data available for
identifying areas of focus for on-site and
off-site examinations. Among other
purposes, the agencies use Call Report
data in evaluating institutions’ corporate
applications, including interstate merger
and acquisition applications for which
the agencies are required by law to
determine whether the resulting
institution would control more than 10
percent of the total amount of deposits
of insured depository institutions in the
United States. Call Report data also are
used to calculate institutions’ deposit
insurance assessments and national
banks’ and federal savings associations’
semiannual assessment fees.
B. FFIEC 101
The agencies propose to extend for
three years, with revision, the FFIEC
101 report.
Report Title: Risk-Based Capital
Reporting for Institutions Subject to the
Advanced Capital Adequacy
Framework.
Form Number: FFIEC 101.
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.
OCC
OMB Control No.: 1557–0239.
Estimated Number of Respondents: 8
national banks and federal savings
associations.
Estimated Time per Response: 674
burden hours per quarter to file for
banks and federal savings associations.
Estimated Total Annual Burden:
21,568 burden hours to file.

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Board
OMB Control No.: 7100–0319.
Estimated Number of Respondents: 1
state member bank; 4 bank holding
companies and savings and loan
holding companies that complete
Supplementary Leverage Ratio (SLR)
Tables 1 and 2 only; 9 other bank
holding companies and savings and
loan holding companies; and 6
intermediate holding companies.
Estimated Time per Response: 674
burden hours per quarter to file for state
member banks; 3 burden hours per
quarter to file for bank holding
companies and savings and loan
holding companies that complete
Supplementary Leverage Ratio (SLR)
Tables 1 and 2 only; 677 burden hours
per quarter to file for other bank holding
companies and savings and loan
holding companies; and 3 burden hours
per quarter to file for intermediate
holding companies.
Estimated Total Annual Burden:
2,696 burden hours for state member
banks to file; 48 burden hours for bank
holding companies and savings and
loan holding companies that complete
Supplementary Leverage Ratio (SLR)
Tables 1 and 2 only to file; 24,372
burden hours for other bank holding
companies and savings and loan
holding companies to file; and 72
burden hours for intermediate holding
companies to file.

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FDIC
OMB Control No.: 3064–0159.
Estimated Number of Respondents: 1
insured state nonmember bank and state
savings association.
Estimated Time per Response: 674
burden hours per quarter to file.
Estimated Total Annual Burden:
2,696 burden hours to file.
Type of Review: Extension and
revision of currently approved
collections.
Legal Basis and Need for Collections
Each advanced approaches
institution 3 is required to report
quarterly regulatory capital data on the
FFIEC 101. The FFIEC 101 information
collections are mandatory for advanced
approaches institutions: 12 U.S.C. 161
(national banks), 12 U.S.C. 324 (state
member banks), 12 U.S.C. 1844(c) (bank
holding companies), 12 U.S.C. 1467a(b)
(savings and loan holding companies),
12 U.S.C. 1817 (insured state
nonmember commercial and savings
banks), 12 U.S.C. 1464 (savings
associations), and 12 U.S.C. 1844(c),
3106, and 3108 (intermediate holding
3 See 12 CFR 3.100(b) (OCC); 12 CFR 217.100(b)
(Board); 12 CFR 324.100(b) (FDIC).

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companies). Certain data items in this
information collection are given
confidential treatment under 5 U.S.C.
552(b)(4) and (8).
The agencies use data reported in the
FFIEC 101 to assess and monitor the
levels and components of each reporting
entity’s capital requirements and the
adequacy of the entity’s capital under
the Advanced Capital Adequacy
Framework; 4 to evaluate the impact of
the Advanced Capital Adequacy
Framework on individual reporting
entities and on an industry-wide basis
and its competitive implications; and to
supplement on-site examination
processes. The reporting schedules also
assist advanced approaches institutions
in understanding expectations relating
to the system development necessary for
implementation and validation of the
Advanced Capital Adequacy
Framework. Submitted data that are
released publicly will also provide other
interested parties with information
about advanced approaches institutions’
regulatory capital.
II. Current Actions
A. Simplifications Rule
1. Background
On July 22, 2019, the agencies
published a final rule amending their
regulatory capital rule 5 to make a
number of burden-reducing changes to
the capital rule (simplifications rule).6
In the simplifications rule, the agencies
adopted a simpler methodology for nonadvanced approaches banking
organizations 7 to calculate minority
interest limitations and simplified the
regulatory capital treatment of mortgage
servicing assets (MSAs), temporary
difference deferred tax assets (DTAs),
and investments in the capital of
unconsolidated financial institutions.
The simplifications rule had an effective
date of April 1, 2020. However, the
FDIC and the OCC have recently
approved,8 and the Board is
considering, a planned final rule that
would permit non-advanced approaches
banking organizations to implement the
4 12 CFR part 3, subpart E (OCC); 12 CFR part 217,
subpart E (Board); 12 CFR part 324, subpart E
(FDIC).
5 12 CFR part 3 (OCC); 12 CFR part 217 (Board);
12 CFR part 324 (FDIC). While the agencies have
codified the capital rule in different parts of title 12
of the Code of Federal Regulations, the internal
structure of the sections within each agency’s rule
are substantially similar.
6 84 FR 35234 (July 22, 2019).
7 Non-advanced approaches banking
organizations are institutions that do not meet the
criteria in 12 CFR 3.100(b) (OCC); 12 CFR
217.100(b) (Board); or 12 CFR 324.100(b) (FDIC).
8 See FDIC Press Release 80–2019, dated
September 17, 2019.

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simplifications rule on January 1, 2020.
As a result, non-advanced approaches
banking organizations would have the
option to implement the simplifications
rule on the revised effective date of
January 1, 2020, or wait until the quarter
beginning April 1, 2020.
The agencies propose revisions to Call
Report Schedule RC–R, Regulatory
Capital, in all three versions of the Call
Report to implement the associated
changes to the agencies’ regulatory
capital rule effective as of the March 31,
2020, report date, consistent with the
planned final rule that would permit
early adoption of the simplifications
rule.
In addition, the agencies adopted a
number of technical amendments to
their regulatory capital rule in the
simplifications rule that do not require
clearance under the PRA and would
become effective October 1, 2019.
2. Proposed Revisions to Call Report
Schedule RC–R
The revisions in the simplifications
rule would make a number of changes
to the calculation of common equity tier
1 (CET1) capital, additional tier 1
capital, and tier 2 capital for nonadvanced approaches institutions that
do not apply to advanced approaches
institutions. Thus, the simplifications
rule results in different sets of
calculations for these tiers of regulatory
capital for non-advanced approaches
institutions and advanced approaches
institutions. At present, the FFIEC 031
and the FFIEC 041 Call Reports are
completed by both non-advanced
approaches institutions and advanced
approaches institutions while only nonadvanced approaches institutions are
eligible to file the FFIEC 051 Call
Report. To mitigate the complexity of
revising existing Schedule RC–R, Part I,
Regulatory Capital Components and
Ratios, to incorporate the different sets
of regulatory capital calculations for
non-advanced approaches institutions
and advanced approaches institutions,
and to reflect the effects of the
simplifications rule in both the FFIEC
031 and FFIEC 041 Call Reports, the
agencies are proposing to require all
advanced approaches institutions to file
the FFIEC 031 Call Report effective as of
the March 31, 2020, report date.9 As a
result, the agencies would adjust the
existing regulatory capital calculations
reported on Schedule RC–R, Part I, for
the FFIEC 041 Call Report, and also for
the FFIEC 051 Call Report, to reflect the
9 While this proposed change relates to existing
advanced approaches institutions, as discussed in
Section II.C. below, the agencies also propose to
require all Category I, II, and III institutions to file
the FFIEC 031 Call Report.

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effects of the simplifications rule for
non-advanced approaches institutions.
For the FFIEC 031 Call Report, which is
filed by the fewest institutions, the
agencies are proposing to incorporate
the two different sets of regulatory
capital calculations (one for nonadvanced approaches institutions and
the other for advanced approaches
institutions) in Schedule RC–R, Part I,
and, as mentioned above, require all
advanced approaches institutions to file
this version of the Call Report.
The agencies propose a number of
revisions that would simplify the capital
calculations on each version of
Schedule RC–R, Part I, effective March
31, 2020, and thereby reduce reporting
burden. Because both non-advanced
approaches institutions and advanced
approaches institutions file the FFIEC
031 Call Report, the FFIEC 031 Call
Report would include two different sets
of calculations (one that incorporates
the effects of the simplifications rule
and the other that does not) in adjacent
columns in the affected portion of
Schedule RC–R, Part I. An institution
would complete only the column for the
set of calculations applicable to that
institution. For the March 31, 2020,
report date, non-advanced approaches
institutions that file the FFIEC 031 Call
Report and elect to adopt the
simplifications rule on January 1, 2020,
would complete the column for the set
of calculations that incorporates the
effects of the simplifications rule. Nonadvanced approaches institutions that
elect to wait to adopt the simplifications
rule on April 1, 2020, and all advanced
approaches institutions would complete
the column for the set of calculations
that does not reflect the effects of the
simplifications rule (i.e., that reflects the
capital calculation in effect for all
institutions before this revision).
Beginning with the June 30, 2020, report
date, all non-advanced approaches
institutions that file the FFIEC 031 Call
Report would complete the column for
the set of calculations that incorporates
the effects of the simplifications rule; all
advanced approaches institutions that
file this Call Report would complete the
column that does not reflect the effects
of the simplifications rule.
Because advanced approaches
institutions currently are not permitted
to file the FFIEC 051 Call Report and
would not be permitted to file the FFIEC
041 Call Report, the FFIEC 041 and
FFIEC 051 Call Reports would include
a single column for the capital
calculation in Schedule RC–R, Part I,
that would be revised effective March
31, 2020, to incorporate the effects of
the simplifications rule. For the March
31, 2020, report date, non-advanced

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approaches institutions that file the
FFIEC 041 or FFIEC 051 Call Report and
elect to adopt the simplifications rule on
January 1, 2020, would complete the
capital calculation column in Schedule
RC–R, Part I, as revised for the
simplifications rule. The agencies
propose to provide instructions for nonadvanced approaches institutions that
file the FFIEC 041 or FFIEC 051 Call
Report that elect to wait to adopt the
simplifications rule on April 1, 2020, on
how to complete Schedule RC–R,
including the capital calculation
column, for the March 31, 2020, report
date in accordance with the capital rule
in effect before the simplifications rule’s
revised effective date of January 1, 2020.
Beginning with the June 30, 2020, report
date, all non-advanced approaches
institutions that file the FFIEC 041 or
FFIEC 051 Call Report would complete
Schedule RC–R as revised for the
simplifications rule.
In connection with proposing that all
advanced approaches institutions file
the FFIEC 031 Call Report, the agencies
propose to remove certain items from
the FFIEC 041 Call Report that apply
only to advanced approaches
institutions. Thus, for Schedule RC–R,
Part I, in the FFIEC 041 Call Report, the
agencies propose to remove items 30.b,
32.b, 34.b, 35.b, 40.b, 41 through 43
(Column B only), 45.a, 45.b, and 46.b.
The agencies propose to renumber items
30.a, 32.a, 34.a, 35.a, 40.a, and 46.a as
items 30, 32, 34, 35, 40, and 46,
respectively. When the FFIEC 051 Call
Report was created in 2016 (and
implemented as of March 31, 2017),
Schedule RC–R, Part I, was revised to
remove the items and references
applicable only to advanced approaches
institutions. Thus, as a result, Schedule
RC–R, Part I, as it is proposed to be
revised in the FFIEC 041 would be the
same as the existing Schedule RC–R,
Part I, in the FFIEC 051.
In the simplifications rule, the
agencies increased the thresholds for
including MSAs, temporary difference
DTAs that could not be realized through
net operating loss carrybacks (temporary
difference DTAs),10 and investments in
the capital of unconsolidated financial
institutions for non-advanced
approaches institutions. In addition, the
agencies revised the capital calculation
for minority interests included in the
10 The agencies note that An Act to provide for
reconciliation pursuant to titles II and V of the
concurrent resolution on the budget for fiscal year
2018, Public Law 115–97 (originally introduced as
the Tax Cuts and Jobs Act), enacted December 22,
2017, eliminated the concept of net operating loss
carrybacks for U.S. federal income tax purposes,
although the concept may still exist in particular
jurisdictions for state or foreign income tax
purposes.

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various capital categories for nonadvanced approaches institutions and to
the calculation of the capital
conservation buffer.
The current regulatory capital
calculations in Call Report Schedule
RC–R, which do not yet reflect the
revisions contained in the
simplifications rule, require that an
institution’s capital cannot include
MSAs, certain temporary difference
DTAs, and significant investments in
the common stock of unconsolidated
financial institutions in an amount
greater than 10 percent of CET1 capital,
on an individual basis, and those three
data items combined cannot comprise
more than 15 percent of CET1 capital.
When the reporting of regulatory capital
calculations by non-advanced
approaches institutions in accordance
with the simplifications rule takes
effect, this calculation would be revised
in Schedule RC–R, Part I, to require that
only MSAs or temporary difference
DTAs in an amount greater than 25
percent of CET1 capital, on an
individual basis, could not be included
in a non-advanced approaches
institution’s capital. The 15 percent
aggregate limit would be removed. In
addition, the simplifications rule will
combine the current three categories of
investments in financial institutions
(non-significant investments in the
capital of unconsolidated financial
institutions, significant investments in
the capital of unconsolidated financial
institutions that are in the form of
common stock, and significant
investments in the capital of
unconsolidated financial institutions
that are not in the form of common
stock) into a single category,
investments in the capital of
unconsolidated financial institutions,
and will apply a limit of 25 percent of
CET1 capital on the amount of these
investments that can be included in
capital. Any investments in excess of
the 25 percent limit would be deducted
from capital using the corresponding
deduction approach.
Consistent with the current capital
rule, an institution must risk weight
MSAs, temporary difference DTAs, and
investments in the capital of
unconsolidated financial institutions
that are not deducted. The agencies
propose revisions to allow institutions
to enter values into the Column K—
250% risk weight on Schedule RC–R,
Part II, in the FFIEC 051 Call Report,
which is currently shaded out, and
remove footnote two on the second page
of Schedule RC–R, Part II, and the
corresponding footnote on subsequent
pages of Schedule RC–R, Part II, in all
three versions of the Call Reports

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effective as of the March 31, 2020,
report date to accommodate the
simplifications rule revisions to the risk
weight for MSAs and temporary
difference DTAs. Consistent with the
simplifications rule, non-advanced
approaches institutions will not be
required to differentiate among
categories of investments in the capital
of unconsolidated financial institutions.
The risk weight for such equity
exposures generally will be 100 percent,
provided the exposures qualify for this
risk weight.11 For non-advanced
approaches institutions, the
simplifications rule eliminates the
exclusion of significant investments in
the capital of unconsolidated financial
institutions in the form of common
stock from being eligible for a 100
percent risk weight.12 The application of
the 100 percent risk weight (i) requires
a banking organization to follow an
enumerated process for calculating
adjusted carrying value and (ii)
mandates the equity exposures that
must be included in determining
whether the threshold has been reached.
Equity exposures that do not qualify for
a preferential risk weight will generally
receive risk weights of either 300
percent or 400 percent, depending on
whether the equity exposures are
publicly traded.
In order to implement these
regulatory capital changes from a
regulatory reporting perspective, the
agencies propose to make a number of
revisions to Schedule RC–R, Part I, for
non-advanced approaches institutions
effective March 31, 2020. Specifically,
in Schedule RC–R, Part I, in the FFIEC
041 and FFIEC 051 Call Reports, the
agencies propose to remove item 11 and
modify item 13 to reflect the
consolidation of all investments in
unconsolidated financial institutions
into a single category and apply a single
25 percent of CET1 capital limit to these
investments. The agencies propose to

modify items 14 and 15 to reflect the 25
percent of CET1 capital limit for MSAs
and certain temporary difference DTAs,
respectively. The agencies also propose
to remove item 16, which applies to the
aggregate 15 percent limitation that was
removed from the capital rule for nonadvanced approaches institutions. In the
FFIEC 031 Call Report, the agencies
propose to create two columns for
existing items 11 through 19. Column A
would be reported by non-advanced
approaches institutions that elect to
adopt the simplifications rule on
January 1, 2020, in the March 2020 Call
Report and by all non-advanced
approaches institutions beginning in the
June 2020 Call Report using the
definitions under the simplifications
rule. Column A would not include items
11 or 16, and items 13 through 15 would
be designated as items 13.a through 15.a
to reflect the new calculation
methodology. Column B would be
reported by advanced approaches
institutions and by non-advanced
approaches institutions that elect to
wait to adopt the simplifications rule on
April 1,2020, in the March 2020 Call
Report and only by advanced
approaches institutions beginning in the
June 2020 Call Report using the existing
definitions. Existing items 13 through
15 would be designated as items 13.b
through 15.b to reflect continued use of
the existing calculation methodology.
The agencies are not proposing any
changes to the form to incorporate the
minority interest revisions. However,
the agencies are proposing to modify the
instructions for the existing minority
interest items in all versions of the Call
Report to reflect the ability of nonadvanced approaches institutions to use
the revised method under the
simplifications rule to calculate
minority interest in existing items 4, 22,
and 29 (CET1, additional tier 1, and tier
2 minority interest, respectively).
B. Community Bank Leverage Ratio Rule

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11 12

CFR 3.52 and .53 (OCC); 12 CFR 217.52 and
.53 (Board); 12 CFR 324.52 and .53 (FDIC). Note that
for purposes of calculating the 10 percent
nonsignificant equity bucket, the capital rule
excludes equity exposures that are assigned a risk
weight of zero percent and 20 percent, and
community development equity exposures and the
effective portion of hedge pairs, both of which are
assigned a 100 percent risk weight. In addition, the
10 percent non-significant bucket excludes equity
exposures to an investment firm that would not
meet the definition of traditional securitization
were it not for the application of criterion 8 of the
definition of traditional securitization, and has
greater than immaterial leverage.
12 Equity exposures that exceed, in the aggregate,
10 percent of a non-advanced approaches banking
organization’s total capital would then be assigned
a risk weight based upon the approaches available
in sections 52 and 53 of the capital rule. 12 CFR
3.52 and .53 (OCC); 12 CFR 217.52 and .53 (Board);
12 CFR 324.52 and .53 (FDIC).

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1. Background
In February 2019, the agencies
proposed a rule to provide a simplified
alternative measure of capital adequacy,
the community bank leverage ratio
(CBLR), for qualifying community
banking organizations with less than
$10 billion in total consolidated assets
(CBLR proposed rule),13 consistent with
section 201 of the Economic Growth,
Regulatory Relief, and Consumer
Protection Act (EGRRCPA).14 In
February 2019, the FDIC published a
proposed rule to amend the deposit
13 84

FR 3062 (February 8, 2019).
Law 115–174, 132 Stat. 1296 (2018).

14 Public

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insurance assessment regulations to
incorporate the community bank
leverage ratio framework (CBLR
framework) into the deposit insurance
assessment system (CBLR assessments
proposed rule).15 The agencies then
requested comment in April 2019 on
proposed revisions to the Call Report to
implement the CBLR proposed rule and
the CBLR assessments proposed rule.16
However, the FDIC and the OCC have
recently approved,17 and the Board is
considering, a final rule (planned CBLR
final rule) that contains significant
revisions to the calculation
methodology relative to the CBLR
proposed rule. Therefore, the agencies
are proposing a revised version of
community bank leverage ratio
reporting in the Call Report to reflect the
changes in the planned CBLR final rule,
which replaces the previously proposed
community bank leverage ratio
reporting that had been designed to
implement the CBLR proposed rule. In
addition, the FDIC has recently
approved a final rule regarding the
application of the CBLR framework to
the deposit insurance assessment
system (CBLR assessments final rule).18
Because of the features of the revised
calculation methodology in the planned
CBLR final rule described below, the
agencies are not proceeding with the
previously proposed revisions to Call
Report Schedule RC–O, ‘‘Other Data for
Deposit Insurance Assessments,’’ to
implement the CBLR assessments
proposed rule 19 and no revisions to
Schedule RC–O are being proposed in
connection with the CBLR assessments
final rule. Certain clarifications would
be made to the Schedule RC–O
instructions to address the application
of the CBLR framework to the FDIC’s
deposit insurance assessment system in
accordance with the CBLR assessments
final rule.
Under the planned CBLR final rule,
banking organizations that have less
than $10 billion in total consolidated
assets, meet risk-based qualifying
criteria, and have a leverage ratio of
greater than 9 percent will be eligible to
opt into the CBLR framework. A
banking organization that opts into the
CBLR framework, maintains a leverage
ratio of greater than 9 percent, and
meets the other qualifying criteria will
not be subject to other risk-based and
leverage capital requirements and, in
the case of an insured depository
15 84

FR 5380 (February 21, 2019).
FR 16560 (April 19, 2019).
FDIC Press Release 80–2019, dated
September 17, 2019.
18 See FDIC Press Release 80–2019, dated
September 17, 2019.
19 See 84 FR 16565–16566 (April 19, 2019).
16 84

17 See

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institution (IDI), would be considered to
have met the well capitalized capital
ratio requirements for purposes of the
agencies’ prompt corrective action
framework.
Under the planned CBLR final rule, a
bank or savings association (bank) that
opts into the CBLR framework (CBLR
bank) may opt out of the CBLR
framework at any time, without
restriction, by reverting to the generally
applicable capital requirements in the
agencies’ capital rule 20 and reporting its
regulatory capital information in Call
Report Schedule RC–R, ‘‘Regulatory
Capital,’’ Parts I and II, at the time of
opting out.
As described in the planned CBLR
final rule, a banking organization that
no longer meets the qualifying criteria
for the CBLR framework will be
required within two consecutive
calendar quarters (grace period) either to
once again satisfy the qualifying criteria
or demonstrate compliance with the
generally applicable capital
requirements. During the grace period,
the bank would continue to be treated
as a CBLR bank and would be required
to report its leverage ratio and related
components in Call Report Schedule
RC–R, Part I, in the manner described in
this notice.21 A CBLR bank that ceases
to meet the qualifying criteria as a result
of a business combination (e.g., a
merger) would receive no grace period,
and would immediately become subject
to the generally applicable capital
requirements. Similarly, a CBLR bank
that fails to maintain a leverage ratio
greater than 8 percent would not be
permitted to use the grace period and
would immediately become subject to
the generally applicable capital
requirements.
2. Proposed Revisions to Call Report
Schedule RC–R
In this notice, the agencies are
proposing reporting revisions to the Call
Reports for banks that qualify for and
opt into the CBLR framework, consistent
with the planned CBLR final rule. The
reporting changes to the Call Reports

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20 12

CFR part 3 (OCC); 12 CFR part 217 (Board);
12 CFR part 324 (FDIC).
21 For example, if the electing banking
organization no longer meets one of the qualifying
criteria as of February 15, and still does not meet
the criteria as of the end of that quarter, the grace
period for such a banking organization will begin
as of the end of the quarter ending March 31. The
banking organization may continue to use the
community bank leverage ratio framework as of
June 30, but will need to comply fully with the
generally applicable rule (including the associated
reporting requirements) as of September 30, unless
the banking organization once again meets all
qualifying criteria of the community bank leverage
ratio framework, including a leverage ratio of
greater than 9 percent, by that date.

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proposed in this notice would take
effect in the same quarter as the
effective date of the planned final rule
adopting the CBLR framework.
The agencies originally proposed to
incorporate all the community bank
leverage ratio items into a separate
version of Schedule RC–R. However,
after considering the substantial changes
made in the planned CBLR final rule,
the agencies now propose to incorporate
all the revisions related to the
community bank leverage ratio into the
existing Schedule RC–R, Part I, for all
versions of the Call Report.
As provided in the planned CBLR
final rule, the numerator of the
community bank leverage ratio will be
tier 1 capital, which is currently
reported in Schedule RC–R, Part I, item
26. Therefore, the agencies are not
proposing any changes related to the
numerator of the community bank
leverage ratio.
As provided in the planned CBLR
final rule, the denominator of the
community bank leverage ratio will be
average total consolidated assets.
Specifically, average total consolidated
assets would be calculated in
accordance with the existing reporting
instructions for Schedule RC–R, Part I,
items 36 through 39. The agencies are
not proposing any substantive changes
related to the denominator of the
community bank leverage ratio.
However, the agencies are proposing to
move existing items 36 through 39 of
Schedule RC–R, Part I, and renumber
them as items 27 through 30 of
Schedule RC–R, Part I, to consolidate all
of the community-bank-leverage-ratiorelated capital items earlier in Schedule
RC–R, Part I.
As provided in the planned CBLR
final rule, a CBLR bank will calculate its
community bank leverage ratio by
dividing tier 1 capital by average total
consolidated assets (as adjusted), and
the community bank leverage ratio
would be reported as a percentage,
rounded to four decimal places. Since
this calculation is essentially identical
to the existing calculation of the tier 1
leverage ratio in Schedule RC–R, Part I,
item 44, the agencies are not proposing
a separate item for the community bank
leverage ratio in Schedule RC–R, Part I.
Instead, the agencies propose to move
the tier 1 leverage ratio from item 44 of
Part I and renumber it as item 31, and
rename the item the Leverage Ratio, as
this ratio would apply to all institutions
(as the community bank leverage ratio
for qualifying institutions or the tier 1
leverage ratio for all other institutions).
As provided in the planned CBLR
final rule, a CBLR bank will need to
satisfy certain qualifying criteria in

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order to be eligible to opt into the CBLR
framework. The proposed items
identified below would collect
information necessary to ensure that a
bank continuously meets the qualifying
criteria for using the CBLR framework.
Specifically, a CBLR bank is a bank
that is not an advanced approaches
institution and meets the following
qualifying criteria:
• A leverage ratio of greater than 9
percent;
• Total consolidated assets of less
than $10 billion;
• Total trading assets and trading
liabilities of 5 percent or less of total
consolidated assets; and
• Total off-balance sheet exposures
(excluding derivatives other than sold
credit derivatives and unconditionally
cancelable commitments) of 25 percent
or less of total consolidated assets.22
Accordingly, the agencies propose
collecting the items described below for
community bank leverage ratio
reporting purposes.
In proposed item 32 of Schedule RC–
R, Part I, a CBLR bank would report
total assets, as reported in Call Report
Schedule RC, item 12.
In proposed item 33, a CBLR bank
would report the sum of trading assets
from Schedule RC, item 5, and trading
liabilities from Schedule RC, item 15, in
Column A. The bank would also report
that sum divided by total assets from
Schedule RC, item 12, and expressed as
a percentage in Column B. As provided
in the planned CBLR final rule, trading
assets and trading liabilities would be
added together, not netted, for purposes
of this calculation. Also as discussed in
the planned CBLR final rule, a bank
would not meet the definition of a
qualifying community banking
organization for purposes of the CBLR
framework if the percentage reported in
Column B is greater than 5 percent.
In proposed items 34.a through 34.d,
a CBLR bank would report information
related to commitments, other offbalance sheet exposures, and sold credit
derivatives.
22 Under the planned CBLR final rule, the
agencies have reserved the authority to disallow the
use of the CBLR framework by a depository
institution or depository institution holding
company based on the risk profile of the banking
organization. This authority is reserved under the
general reservation of authority included in the
capital rule, in which the CBLR framework would
be codified. See 12 CFR 3.1(d) (OCC); 12 CFR
217.1(d) (Board); 12 CFR 324.1(d) (FDIC). In
addition, for purposes of the capital rule and
section 201 of the EGRRCPA, the agencies have
reserved the authority to take action under other
provisions of law, including action to address
unsafe or unsound practices or conditions, deficient
capital levels, or violations of law or regulation. See
12 CFR 3.1(b) (OCC); 12 CFR 217.1(b) (Board); 12
CFR 324.1(b) (FDIC).

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In proposed item 34.a, a CBLR bank
would report the unused portion of
conditionally cancelable commitments.
This amount would be the amount of all
unused commitments less the amount of
unconditionally cancelable
commitments, as discussed in the
planned CBLR final rule and defined in
the agencies’ capital rule.23 This item
would be calculated consistent with the
sum of Schedule RC–R, Part II, items
18.a and 18.b, Column A.
In proposed item 34.b, a CBLR bank
would report total securities lent and
borrowed, which would be the sum of
Schedule RC–L, items 6.a and 6.b.
In proposed item 34.c, a CBLR bank
would report the sum of certain other
off-balance sheet exposures and sold
credit derivatives. Specifically, a CBLR
bank would report the sum of selfliquidating, trade-related contingent
items that arise from the movement of
goods; transaction-related contingent
items (performance bonds, bid bonds,
warranties, and performance standby
letters of credit); sold credit protection
in the form of guarantees and credit
derivatives; credit-enhancing
representations and warranties;
financial standby letters of credit;
forward agreements that are not
derivative contracts; and off-balance
sheet securitizations. A CBLR bank
would not include derivatives that are
not sold credit derivatives, such as
foreign exchange swaps and interest rate
swaps, in proposed item 34.c.
In proposed item 34.d, a CBLR bank
would report the sum of proposed items
34.a through 34.c in Column A. The
bank would also report that sum
divided by total assets from Schedule
RC, item 12, and expressed as a
percentage in Column B. As discussed
in the planned CBLR final rule, a bank
would not be eligible to opt into the
CBLR framework if this percentage is
greater than 25 percent.
In proposed item 35, a CBLR bank
would report the total of
unconditionally cancellable
commitments, which would be
calculated consistent with the
instructions for existing Schedule RC–R,
Part II, item 19. This item is not used
specifically to calculate a bank’s
eligibility for the CBLR framework.
However, the agencies are collecting
this information to identify any bank
using the CBLR framework that may
have significant or excessive
concentrations in unconditionally
cancellable commitments that would
warrant the agencies’ use of the
23 See

definition of ‘‘unconditionally cancellable’’
in 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12 CFR
324.2 (FDIC).

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reservation of authority in their capital
rule to direct an otherwise-eligible
CBLR bank to report its regulatory
capital using the generally applicable
capital requirements.24
In proposed item 36, a CBLR bank
would report the amount of investments
in the capital instruments of an
unconsolidated financial institution that
would qualify as tier 2 capital. Since the
CBLR framework does not have a total
capital requirement, a CBLR bank is
neither required to calculate tier 2
capital nor make any deductions that
would be taken from tier 2 capital.
Therefore, if a CBLR bank has
investments in the capital instruments
of an unconsolidated financial
institution that would qualify as tier 2
capital of the CBLR bank under the
generally applicable capital
requirements (tier 2 qualifying
instruments), and the CBLR bank’s total
investments in the capital of
unconsolidated financial institutions
exceed 25 percent of its CET1 capital,
the CBLR bank is not required to deduct
the tier 2 qualifying instruments. A
CBLR bank is required to make a
deduction from CET1 capital or tier 1
capital only if the sum of its
investments in the capital of an
unconsolidated financial institution is
in a form that would qualify as CET1
capital or tier 1 capital instruments of
the CBLR bank and the sum exceeds the
25 percent CET1 threshold. The
agencies believe it is important to
continue collecting information on the
amount of investments in these capital
instruments as excessive investments
similarly could warrant the agencies’
use of their reservation of authority.
In proposed item 37, a CBLR bank
would be required to report its allocated
transfer risk reserve (ATRR), as
currently calculated and reported in
Schedule RC–R, Part II, item 30. In
proposed items 38.a through 38.c, a
CBLR bank that has adopted Accounting
Standards Update (ASU) No. 2016–13
on credit losses must report the amount
of any allowances for credit losses on
purchased credit-deteriorated loans and
leases held for investment, held-tomaturity debt securities, and other
financial assets measured at amortized
cost, as currently calculated and
reported in Schedule RC–R, Part II,
Memorandum items 4.a through 4.c.
The amount of the ATRR, if any, is
necessary to calculate capital and
surplus and corresponding limits in a
number of the OCC’s regulations,
24 Other factors also may lead the agencies to
determine that the risk profile of an otherwiseeligible CBLR bank would warrant the use of the
reservation of authority.

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including investment securities limits
(12 CFR part 1) and lending limits (12
CFR part 32). After an institution adopts
ASU 2016–13, allowances for credit
losses on purchased credit-deteriorated
assets similarly would affect the
calculation of these limits. While these
limits apply directly to institutions
supervised by the OCC, a number of
federal or state laws may apply the
OCC’s calculation of certain limits to
state-chartered institutions supervised
by the FDIC or the Board. Therefore, the
agencies are proposing to retain this
information for all CBLR banks. As
CBLR banks would not complete
Schedule RC–R, Part II, this information
would otherwise not be readily
available for the agencies to calculate
the relevant regulatory limits for these
institutions.25
Because a CBLR bank would not be
subject to the generally applicable
capital requirements, a CBLR bank
would not need to complete any of the
items in Schedule RC–R, Part I, after
proposed item 38, nor would the bank
need to complete Schedule RC–R, Part
II, Risk-Weighted Assets.
In connection with moving the
leverage ratio calculations and inserting
items for the CBLR qualifying criteria in
Schedule RC–R, Part I, existing items 27
through 35 of Schedule RC–R, Part I,
will be renumbered as items 39 through
47. Existing items 40 through 43 will be
renumbered as items 48 through 51,
while existing items 46 through 48 will
be renumbered as items 52 through 54.
For advanced approaches institutions
filing the FFIEC 031 Call Report,
existing items 45.a and 45.b for total
leverage exposure and the
supplementary leverage ratio,
respectively, will be renumbered as
items 55.a and 55.b.
A CBLR bank would indicate that it
has elected to apply the CBLR
framework by completing Schedule RC–
R, Part I, items 32 through 38.
Institutions not subject to the CBLR
framework would be required to report
all data items in Schedule RC–R, Part I,
except for items 32 through 38.
3. Other Proposed Call Report Revisions
Related to the CBLR
While not specifically part of the
planned CBLR final rule, the agencies
currently collect information in Call
Report Schedule RC–C, Part I, ‘‘Loans
25 Institutions that are not CBLR banks would not
complete proposed items 37 and 38.a through 38.c,
but would continue to report any ATRR and any
allowances for credit losses on purchased creditdeteriorated loans and leases held for investment,
held-to-maturity debt securities, and other financial
assets measured at amortized cost in Schedule RC–
R, Part II.

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Federal Register / Vol. 84, No. 193 / Friday, October 4, 2019 / Notices
and Leases,’’ Memorandum item 13,
from institutions that have a significant
amount of construction, land
development, and other land loans with
interest reserves in relation to their total
regulatory capital as reported as of the
previous calendar year-end report date.
At present, total regulatory capital is
defined as total capital reported on
Schedule RC–R, Part I, item 35 (FFIEC
051) or item 35.a (FFIEC 031 or FFIEC
041). While CBLR banks would no
longer report their total capital in
Schedule RC–R, Part I, the agencies
believe it is still important to collect this
information from CBLR banks that have
a significant amount of construction,
land development, and other land loans
with interest reserves. Therefore,
effective March 31, 2021,26 the agencies
propose to revise the reporting
threshold for Schedule RC–C, Part I,
Memorandum item 13, for all
institutions to reference the sum of tier
1 capital as reported in Schedule RC–R,
Part I, item 26, plus the allowance for
loan and lease losses or the allowance
for credit losses on loan and leases, as
applicable, as reported in Schedule RC,
item 4.c.
C. Proposed Tailoring Rules

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1. Background
On December 21, 2018, the agencies
published a notice of proposed
rulemaking (NPR) proposing to revise
the criteria for determining the
applicability of requirements under the
regulatory capital rule, the liquidity
coverage ratio rule, and the proposed
net stable funding ratio rule for large
U.S. banking organizations (domestic
interagency tailoring NPR).27 The
proposal would establish four risk-based
categories and apply tailored capital and
liquidity requirements for banking
organizations subject to each category.
On May 24, 2019, the agencies
published an NPR that would revise the
criteria for determining the applicable
regulatory capital requirements for
certain U.S. intermediate holding
companies of foreign banking
organizations and their depository
institution subsidiaries, and the
application of standardized liquidity
26 For report dates during 2020, the reporting
threshold for Schedule RC–C, Part I, Memorandum
item 13, would be the total capital an institution
reported in Schedule RC–R, Part I, as of December
31, 2019, which will predate the initial reporting
under the CBLR framework in Schedule RC–R. The
first year-end report date under the CBLR
framework would be December 31, 2020, which
would be the report date to which a CBLR bank
would refer in order to determine whether it would
need to complete Schedule RC–C, Part I,
Memorandum item 13, as of each quarter-end report
date during 2021.
27 83 FR 66024 (December 21, 2018).

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requirements with respect to the U.S.
operations of large foreign banking
organizations and certain of their
depository institution subsidiaries, each
according to three of the four risk-based
categories proposed for U.S. banking
organizations (foreign interagency
tailoring NPR).28 Thus, the proposal is
similar to the domestic interagency
tailoring NPR. The foreign interagency
tailoring NPR also proposed technical
amendments to certain provisions of the
domestic interagency tailoring NPR.
Under the proposed approach, the
most stringent set of standards (Category
I) would apply to U.S. global
systemically important banks (GSIBs).
The second set of standards (Category II)
would apply to banking organizations
that are very large or have significant
international activity. Like Category I,
this category would generally include
standards that are based on standards
that reflect agreements reached by the
Basel Committee on Banking
Supervision. The third set of standards
(Category III) would apply to banking
organizations with $250 billion or more
in total consolidated assets that do not
meet the criteria for Category I or II. The
third set of standards would also apply
to banking organizations with total
consolidated assets of $100 billion or
more, but less than $250 billion, that
meet or exceed other specified riskbased indicators. The fourth set of
standards (Category IV) would apply to
banking organizations with total
consolidated assets of $100 billion or
more that do not meet the thresholds for
one of the other categories.
The domestic interagency tailoring
and foreign interagency tailoring NPRs
also describe the capital and liquidity
requirements that would apply for
institutions subject to Category I, II, III,
or IV capital standards. Based on the
proposed capital and liquidity
requirements that would apply to
institutions subject to Category I, II, III,
or IV capital standards in the domestic
interagency tailoring and foreign
interagency tailoring NPRs, the agencies
are proposing to amend certain
regulatory report forms to clarify the
reporting requirements for those
institutions that would be subject to
those proposed rules. Specifically, the
agencies are proposing changes to Call
Report Schedule RC–R, Part I,
Regulatory Capital Components and
Ratios, and FFIEC 101 Schedule A,
Advanced Approaches Regulatory
Capital, to provide clarification for
institutions subject to Category III
28 84

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53235

capital standards.29 If modifications are
made to the proposed tailoring rules
when the rules are adopted in final
form, the agencies would modify the
Call Report and FFIEC 101 proposals to
incorporate such changes. These
changes would generally align with the
Board’s proposed amendments to FR Y–
9C, Schedule HC–R, Part I, issued in
conjunction with the Board’s domestic
tailoring and foreign tailoring
proposals.30
In addition, the agencies are
proposing that all institutions subject to
Category I, II, or III capital standards
would be required to file the FFIEC 031
Call Report. While the agencies
proposed to require all advanced
approaches institutions to file the FFIEC
031 Call Report in connection with the
simplifications rule, the tailoring rules
would narrow the scope of institutions
calculating risk-weighted assets under
the advanced approaches. The agencies
expect this scope revision to have little,
if any, impact on current institutions, as
all institutions with total consolidated
assets of $100 billion or more or with
foreign offices already are required to
file the FFIEC 031, which generally
aligns with the standards for Category I,
II, and III institutions.31 Also, modifying
the scope of the Call Report in this
manner would enable the agencies to
streamline Schedule RC–R, Part I, of the
FFIEC 041 report by removing data
items that apply only to the limited
number of current advanced approaches
institutions currently eligible to file the
FFIEC 041 report and to any future
institutions that would, absent this
change in scope, be eligible to file the
FFIEC 041 report.
2. Proposed Revisions to Call Report
Schedule RC–R, Part I
In order to implement the
clarifications for institutions subject to
Category III capital standards, as
discussed above the agencies propose to
require all Category III institutions to
file the FFIEC 031 Call Report and to
revise the caption for Schedule RC–R,
Part I, item 45, ‘‘Advanced approaches
institutions only: Supplementary
leverage ratio information,’’ on the
FFIEC 031 Call Report. Specifically, the
29 The agencies do not believe reporting form or
instructional clarifications are needed to reflect
capital requirements that would apply to
institutions subject to Category I, II, or IV capital
standards under the domestic interagency tailoring
and foreign interagency tailoring NPRs.
30 See 84 FR 22009 (May 15, 2019).
31 Institutions that are subsidiaries of institutions
subject to Category I, II, or III capital standards also
are considered Category I, II, or III institutions
under the domestic interagency tailoring and
foreign interagency tailoring NPRs, and would be
treated similarly for this change in reporting scope.

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Federal Register / Vol. 84, No. 193 / Friday, October 4, 2019 / Notices

agencies propose to clarify that item 45
(proposed to be renumbered as item 55)
applies to ‘‘advanced approaches and
Category III institutions’’ on the FFIEC
031 report form. Item 45 would be
removed from the FFIEC 041 report
form. The instructions for Schedule RC–
R, Part I, item 45 (proposed to be
renumbered as item 55), in the FFIEC
031–FFIEC 041 instruction book also
would be revised in the same manner.
The general instructions for Schedule
RC–R, Part I, in the FFIEC 031–FFIEC
041 instruction book also would be
clarified to indicate that Category III
institutions are not required to calculate
risk-weighted assets according to the
advanced approaches rule, but are
subject to the supplementary leverage
ratio and countercyclical capital buffer.
3. Proposed Revisions to the FFIEC 101
To implement the clarification for
institutions subject to Category III
capital standards, the agencies propose
to revise the instructions for the scope
of the FFIEC 101. Specifically, the
instructions would be revised to clarify
that top-tier Category III bank holding
companies, savings and loan holding
companies, and insured depository
institutions, and all U.S. intermediate
holding companies, must complete
FFIEC 101 Schedule A, SLR Tables 1
and 2, only.32 All Category IV
institutions would not complete or file
any part of the FFIEC 101.
D. Proposed Total Loss Absorbing
Capacity Holdings Rule

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1. Background
On April 8, 2019, the agencies
published an NPR that would address
an advanced approaches banking
organization’s regulatory capital
treatment of an investment in unsecured
debt instruments issued by foreign or
U.S. global systemically important
banks (GSIBs) for the purposes of
meeting minimum total loss absorbing
capacity (TLAC) and, where applicable,
long-term debt (LTD) requirements, or
liabilities issued by GSIBs that are pari
passu or subordinated to such debt
instruments (TLAC Holdings NPR).33
Under the TLAC Holdings NPR,
investments by an advanced approaches
banking organization in certain
unsecured debt instruments generally
would be subject to deduction from the
32 Any Category III banking organization that is a
consolidated subsidiary of a top-tier Category III
bank holding company, savings and loan holding
company, or insured depository institution would
not complete or file any part of the FFIEC 101.
Those subsidiary banking organizations would
report SLR data on Schedule RC–R of the Call
Report.
33 84 FR 13814 (April 8, 2019).

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advanced approaches banking
organization’s regulatory capital if such
investments exceed certain thresholds.
The Board also proposed to require that
banking organizations subject to
minimum TLAC and LTD requirements
under Board regulations publicly
disclose their TLAC and LTD issuances
in a manner described in the TLAC
Holdings NPR.
The agencies are proposing changes to
Call Report Schedule RC–R, Part I,
Regulatory Capital Components and
Ratios, and FFIEC 101 Schedule A,
Advanced Approaches Regulatory
Capital, to implement the changes
proposed to the agencies’ capital rule. If
modifications are made to the proposed
TLAC holdings rule when it is adopted
in final form, the agencies would
modify the Call Report and FFIEC 101
proposals to incorporate such changes.
2. Proposed Revisions to Call Report
Schedule RC–R, Part I
Under the TLAC Holdings NPR,
advanced approaches banking
organizations would report the total
amount of deductions related to
investments in own CET1, additional
tier 1, and tier 2 capital instruments;
investments in own covered debt
instruments, if applicable; reciprocal
cross holdings; non-significant
investments in the capital and covered
debt instruments of unconsolidated
financial institutions that exceed certain
thresholds; certain investments in
excluded covered debt instruments, as
applicable; and significant investments
in the capital and covered debt
instruments of unconsolidated financial
institutions. Any deductions related to
covered debt instruments and excluded
covered debt instruments (together,
TLAC debt holdings) would be applied
at the level of tier 2 capital under the
agencies’ existing regulatory capital
rule. Any required deduction would be
made using the ‘‘corresponding
deduction approach,’’ by which an
advanced approaches banking
organization would deduct TLAC debt
holdings first from tier 2 capital and, if
it had insufficient tier 2 capital to make
the full requisite deduction, deduct the
remaining amount from additional tier 1
capital and then, if necessary, from
CET1 capital.
In order to implement these proposed
changes, the agencies propose to make
a number of revisions to the instructions
for Schedule RC–R, Part I, that would be
applicable to advanced approaches
banking organizations and would be
included in the FFIEC 031–FFIEC 041
instruction book. Specifically, the
agencies propose to revise the
instructions for items 11, 17, 24, and 33

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(proposed to be renumbered as item 45)
to effectuate the deductions from
regulatory capital for advanced
approaches banking organizations
related to investments in covered debt
instruments and excluded covered debt
instruments. These changes would
generally align with the Board’s
proposed amendments to FR Y–9C,
Schedule HC–R, Part I, issued in
conjunction with the TLAC Holdings
NPR.34
3. Proposed Revisions to Call Report
Schedule RC–R, Part II
The agencies also are proposing to
revise the instructions for Schedule RC–
R, Part II, that would be applicable to
advanced approaches banking
organizations and would be included in
the FFIEC 031–FFIEC 041 instruction
book. Specifically, the agencies propose
to revise the instructions for items 2.a,
2.b, 7, and 8 to incorporate investments
in covered debt instruments and
excluded debt instruments, as
applicable, by advanced approaches
banking organizations in their
calculation of risk-weighted assets.
These changes would generally align
with the Board’s proposed amendments
to FR Y–9C, Schedule HC–R, Part II,
issued in conjunction with the TLAC
Holdings NPR.
4. Proposed Revisions to FFIEC 101
Schedule A
i. Deductions From Regulatory Capital
The agencies propose to make a
number of revisions to the instructions
for FFIEC 101 Schedule A and add a
new data item to this schedule.
Specifically, the agencies propose to
revise the instructions for existing items
52 through 54 and add a new data item
to effectuate any deductions from
regulatory capital for advanced
approaches banking organizations for
investments in excluded covered debt
instruments, as described in Section
II.D.2. above. Existing item 56, ‘‘Other
deductions from tier 2 capital,’’ would
be renumbered and recaptioned as item
56.b, ‘‘All other deductions from tier 2
capital.’’ The new item would be
inserted as item 56.a, ‘‘Investments in
excluded covered debt instruments,’’
which would be applicable only to
global systemically important bank
holding companies (GSIBs) and
subsidiaries of GSIBs.
ii. LTD and TLAC Amounts, Ratios, and
Buffer
In conjunction with the issuance of
the TLAC Holdings NPR, the Board also
proposed revisions to the FR Y–9C,
34 See

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Federal Register / Vol. 84, No. 193 / Friday, October 4, 2019 / Notices
Schedule HC–R, Part I, that would
collect information from U.S. GSIBs and
the intermediate holding companies of
foreign GSIBs. Specifically, the
proposed items would collect
information on these holding
companies’ LTD and TLAC amounts,
LTD and TLAC ratios, and TLAC buffer.
Since the minimum LTD and TLAC
requirements and TLAC buffer are only
applied at the holding company-level,
the agencies are not proposing to amend
the FFIEC 101 to include this
information. Collecting this information
in the FFIEC 101 would be a duplicative
reporting requirement and would only
be applicable to a subset of FFIEC 101
filers. However, the agencies are
interested in public feedback on this
issue, especially if commenters believe
including these items would enhance or
simplify public disclosure.
E. Proposed Revisions to the
Supplementary Leverage Ratio for
Certain Central Bank Deposits of
Custodial Banks

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1. Background
On April 30, 2019, the agencies
published an NPR that would
implement section 402 of the EGRRCPA
(section 402). Section 402 directs the
agencies to amend the capital rule 35 to
exclude from the SLR certain central
bank deposits of custodial banks.
Section 402 defines a custodial bank as
any depository institution holding
company predominantly engaged in
custody, safekeeping, and asset
servicing activities, including any IDI
subsidiary of such a holding company.36
Under the proposed rulemaking, a
depository institution holding company
would be considered predominantly
engaged in custody, safekeeping, and
asset servicing activities if the U.S. toptier depository institution holding
company in the organization has a ratio
of assets under custody-to-total assets of
at least 30:1. The proposal would define
such a depository institution holding
company, together with any subsidiary
depository institution, as a ‘‘custodial
banking organization.’’ 37 Under the
proposal, a custodial banking
35 See 12 CFR part 3 (OCC); 12 CFR part 217
(Board); 12 CFR part 324 (FDIC).
36 See generally Public Law 115–174, sec. 402.
37 For purposes of this proposed rulemaking, the
OCC’s capital rule would be revised to include a
definition of ‘‘custody bank,’’ defined as a national
bank or Federal savings association that is a
subsidiary of a depository institution holding
company that is a custodial banking organization
under 12 CFR 217.2. Similarly, the FDIC’s capital
rule would be revised to include a definition of
‘‘custody bank,’’ defined as an FDIC-supervised
institution that is a subsidiary of a depository
institution holding company that is a custodial
banking organization under 12 CFR 217.2.

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organization would exclude deposits
placed at a ‘‘qualifying central bank’’
from the denominator of the SLR. For
purposes of the proposal, a qualifying
central bank would mean a Federal
Reserve Bank, the European Central
Bank, or a central bank of a member
country of the Organisation for
Economic Co-operation and
Development (OECD) 38 if the country’s
sovereign exposures qualify for a zero
percent risk weight under section 32 of
the capital rule and the sovereign debt
of such member country is not in
default or has not been in default during
the previous five years. The amount of
central bank deposits that could be
excluded from the denominator of the
SLR would be limited by the amount of
deposit liabilities on the consolidated
balance sheet of the custodial banking
organization that are linked to fiduciary
or custody and safekeeping accounts.
The agencies are proposing changes to
the instructions for Call Report
Schedule RC–R and FFIEC 101
Schedule A, that would implement the
proposed changes to the agencies’
capital rule.39 If modifications are made
to the proposed custodial bank rule
when it is adopted in final form, the
agencies would modify the Call Report
and FFIEC 101 proposals to incorporate
such changes.
2. Proposed Revisions to Call Report
Schedule RC–R, Part I
As described in Section II.E.1. above,
revisions have been proposed to the
calculation of the total leverage
exposure, which is the denominator of
the SLR. Currently, the instructions for
Schedule RC–R, Part I, item 45.a, ‘‘Total
leverage exposure,’’ reference section
10(c)(4) of the agencies’ capital rule.
However, the proposed revisions to
implement section 402 would allow an
organization that qualifies as a
‘‘custodial banking organization’’ to
exclude deposits placed at a ‘‘qualifying
central bank’’ from the total leverage
exposure, limited to the amount of
deposit liabilities on the consolidated
balance sheet of the custodial banking
organization that are linked to fiduciary
or custody and safekeeping accounts.
Therefore, if the rule is implemented as
proposed, the capital rule would be
modified through the incorporation of
section 402. Accordingly, the agencies
38 The OECD is an intergovernmental
organization founded in 1961 to stimulate economic
progress and global trade. A list of OECD member
countries is available on the OECD’s website,
www.oecd.org.
39 In connection with the NPR to implement
section 402 of the EGRRCPA, the Board will
separately propose to make corresponding revisions
to the Consolidated Financial Statements for
Holding Companies (FR Y–9C).

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would make corresponding
modifications to the instructions for the
calculation of the total leverage
exposure for institutions that qualify as
a ‘‘custodial banking organization’’ and
the reporting of this exposure in
Schedule RC–R, Part I, item 45.a (which
would become item 54.a, as proposed
above).
3. Proposed Revisions to FFIEC 101
Schedule A
Similar to its effect on the Call Report,
the agencies’ proposal to implement
section 402, as discussed in section
II.E.1. above, would also revise the total
leverage exposure calculation that
would be reported on the FFIEC 101
Schedule A. Currently, there are two
calculations for the total leverage
exposure in Schedule A, one is
contained in SLR Table 1 and the other
is in SLR Table 2. The agencies invite
comment on the addition of a new data
item to both tables in FFIEC 101
Schedule A for the qualifying central
bank deduction. The new reporting item
would be placed between existing data
items 1.7 and 1.8 in SLR Table 1, with
the instructions for the total leverage
exposure expected to include the new
reporting item in the total calculation.
Similarly, for SLR Table 2, the new
reporting item would be placed between
data items 2.2 and 2.3 and the total
leverage exposure would be modified to
include the new reporting item in the
total calculation.
F. Proposed Standardized Approach for
Counterparty Credit Risk on Derivative
Contracts
1. Background
On December 17, 2018, the agencies
published an NPR to implement a new
approach for calculating the exposure
amount of derivative contracts under
the capital rule: the standardized
approach for counterparty credit risk
(SA–CCR) (SA–CCR proposal).40
The SA–CCR proposal would replace
the current exposure methodology
(CEM) with SA–CCR in the capital rule
for advanced approaches institutions.
Under the advanced approaches, an
advanced approaches institution would
have to choose either SA–CCR or the
internal models methodology to
calculate the exposure amount of its
noncleared and cleared derivative
contracts and use SA–CCR to determine
the risk-weighted asset amount of its
default fund contributions. In addition,
an advanced approaches institution
would be required to use SA–CCR
(instead of CEM) to calculate the
40 83

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exposure amount of its noncleared and
cleared derivative contracts and to
determine the risk-weighted asset
amount of its default fund contributions
under the standardized approach, as
well as to determine the exposure
amount of its derivative contracts for
purposes of the SLR.
Under the SA–CCR proposal, a nonadvanced approaches institution would
be able to use either CEM or SA–CCR to
calculate the exposure amount of its
noncleared and cleared derivative
contracts and to determine the riskweighted asset amount of its default
fund contributions under the
standardized approach. A Category III
banking organization would also use
SA–CCR for calculating its SLR if it
chooses to use SA–CCR to calculate its
derivative and default fund exposures.
The agencies propose to revise the
instructions for Call Report Schedule
RC–R, Part II, as well as to SLR Table
2 in FFIEC 101 Schedule A, to
implement the proposed changes to the
calculation of the exposure amount of
derivative contracts under the agencies’
capital rule. If modifications are made to
the SA–CCR proposal when it is
adopted in final form, the agencies
would modify the Call Report and
FFIEC 101 proposals to incorporate such
changes.

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2. Proposed Revisions to Call Report
Schedule RC–R, Part II
A banking organization must report
the notional amount and regulatory
capital exposure amount of its
derivatives exposures in Schedule RC–
R, Part II. The agencies propose to revise
the instructions for Schedule RC–R, Part
II, consistent with the SA–CCR
proposal. Generally, the proposed
revisions to the reporting of derivatives
elements in Schedule RC–R, Part II, are
driven by the treatment of cleared
derivatives’ variation margin (settled-tomarket versus collateralized-to-market),
netting provisions impacting the
calculations of notional and exposure
amounts, and attributions of derivatives
to cleared versus noncleared
derivatives. The General Instructions for
Schedule RC–R, Part II, and the
instructions for Schedule RC–R, Part II,
items 20, 21, and Memorandum items 1
through 3 would be revised.
3. Proposed Revisions to FFIEC 101
Schedule A, SLR Table 2
An advanced approaches institution
must report the exposure amount of its
derivatives in SLR Table 2 of FFIEC 101
Schedule A. The agencies propose to
revise the instructions for SLR Table 2
consistent with the SA–CCR proposal.
In particular, institutions that are

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required to use SA–CCR for the purpose
of the SLR would apply the SA–CCRbased exposure amount without
consideration of the various collateral
items currently listed in the instructions
for SLR Table 2. Institutions that
continue to use the current exposure
method would use the current
instructions to complete SLR Table 2.
G. High Volatility Commercial Real
Estate (HVCRE) Land Development
Proposal
1. Background
On September 28, 2018, the agencies
published an HVCRE NPR to revise the
HVCRE exposure definition in section 2
of the capital rule 41 to conform to the
statutory definition of an HVCRE ADC
loan.42 Consistent with section 214 of
the EGRRCPA, the agencies proposed in
the HVCRE NPR to exclude credit
facilities that finance the acquisition,
development, or construction of one- to
four-family residential properties from
the definition of HVCRE exposure.
Section 214 became effective upon
enactment of the EGRRCPA.
Accordingly, on July 6, 2018, the
agencies issued a statement (interagency
statement), advising institutions that,
when determining which loans should
be subject to a heightened risk weight,
they may choose to continue to apply
the current regulatory definition of
HVCRE exposure, or they may choose to
apply the heightened risk weight only to
those loans they reasonably believe
meet the definition of ‘‘HVCRE ADC
loan’’ set forth in section 214 of the
EGRRCPA.43 Until the agencies take
further action, institutions are advised
to reference the interagency statement
for purposes of the HVCRE exposure
definition and regulatory reporting.
On July 23, 2019, the agencies
published the HVCRE Land
Development NPR,44 which would
expand upon the HVCRE NPR to revise
the definition of HVCRE exposure in the
capital rule by adding a new paragraph
that provides that the exclusion for oneto four-family residential properties
would not include credit facilities that
solely finance land development
activities, such as the laying of sewers,
water pipes, and similar improvements
to land, without any construction of
41 12 CFR part 3 (OCC); 12 CFR part 217 (Board);
and 12 CFR part 324 (FDIC).
42 See 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board);
and 12 CFR 324.2 (FDIC).
43 Board, FDIC, and OCC, Interagency statement
regarding the impact of the Economic Growth,
Regulatory Relief, and Consumer Protection Act
(EGRRCPA), https://www.federalreserve.gov/
newsevents/pressreleases/files/
bcreg20180706a1.pdf.
44 84 FR 35344 (July 23, 2019).

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one- to four-family residential
structures. In order for a loan to be
eligible for this exclusion, the credit
facility would be required to include
financing for construction of one- to
four-family residential structures. This
proposed revision to the capital rule
would generally align with the
instructions for item 1.a.(2) of Call
Report Schedule RC–C, Part I, and FR
Y–9C, Schedule HC–C.
Allowing institutions to apply a
consistent definition of one- to fourfamily residential property and land
development in this manner would
simplify reporting requirements, reduce
burden, and promote uniform
application of the capital rule.
2. Proposed Revisions to Call Report
Schedule RC–R, Part II
If the agencies adopt a final rule
under section 214 of the EGRRCPA,
such final rule would supersede the July
6, 2018, interagency statement and
institutions would be required to apply
the HVCRE definition in that rule.
Therefore, the agencies are proposing
conforming revisions to the instructions
for Schedule RC–R, Part II, items 4.b
and 5.b, in all versions of the Call
Report. No revisions to the Call Report
forms would be necessary.
3. Proposed Revisions to FFIEC 101
Schedule G
The changes to the HVCRE definition
discussed above would also affect the
instructions for Schedule G—Wholesale
Exposure. Therefore, the agencies are
proposing conforming revisions to the
FFIEC 101 instructions to align with the
new HVCRE definition in the final rule
implementing section 214.
H. Operating Lease Liabilities
In February 2016, the Financial
Accounting Standards Board (FASB)
issued ASU No. 2016–02, ‘‘Leases,’’
which added Topic 842, Leases, to the
Accounting Standards Codification
(ASC). Once ASU 2016–02 is effective
for an institution, the ASU’s accounting
requirements, as amended by certain
subsequent ASUs, supersede ASC Topic
840, Leases.
The most significant change that ASC
Topic 842 makes to the previous lease
accounting requirements is to lessee
accounting. Under the lease accounting
standards in ASC Topic 840, lessees
recognize lease assets and lease
liabilities on the balance sheet for
capital leases, but do not recognize
operating leases on the balance sheet.
The lessee accounting model under
Topic 842 retains the distinction
between operating leases and capital
leases, which the new standard labels

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finance leases. However, the new
standard requires lessees to record a
right-of-use (ROU) asset and a lease
liability on the balance sheet for
operating leases. (For finance leases, a
lessee’s lease asset also is designated an
ROU asset.) In general, the new standard
permits a lessee to make an accounting
policy election to exempt leases with a
term of one year or less at their
commencement date from on-balance
sheet recognition.
For institutions that are public
business entities, as defined under U.S.
generally accepted accounting
principles (GAAP), ASU 2016–02 is
effective for fiscal years beginning after
December 15, 2018, including interim
reporting periods within those fiscal
years. For institutions that are not
public business entities, at present, the
new standard is effective for fiscal years
beginning after December 15, 2019, and
interim reporting periods within fiscal
years beginning after December 15,
2020.45 Early application of the new
standard is permitted for all institutions.
The Call Report Supplemental
Instructions for March 2019 46 stated
that a lessee should report lease
liabilities for operating leases and
finance leases, including lease liabilities
recorded upon adoption of the ASU, in
Schedule RC–M, items 5.b, ‘‘Other
borrowings,’’ and 10.b, ‘‘Amount of
‘Other borrowings’ that are secured,’’
which is consistent with the current
Call Report instructions for reporting a
lessee’s obligations under capital leases
under ASC Topic 840. In response to
this instructional guidance, the agencies
received questions from institutions
concerning the reporting of a bank
lessee’s lease liabilities for operating
leases. These institutions indicated that
reporting operating lease liabilities as
other liabilities instead of other
borrowings would better align the
reporting of the single noninterest
expense item for operating leases in the
income statement (which is the
presentation required by ASC Topic
842) with their balance sheet
classification and would be consistent
45 On August 15, 2019, the FASB issued a
proposal that would amend the effective date of
ASC Topic 842 for institutions that are not public
business entities. As proposed, ASC Topic 842
would be effective for such institutions for fiscal
years beginning after December 15, 2020, and
interim reporting periods within fiscal years
beginning after December 15, 2021. The FASB
would retain the existing effective date for ASC
Topic 842 for public business entities. Early
adoption would continue to be allowed.
46 https://www.ffiec.gov/pdf/FFIEC_forms/
FFIEC031_FFIEC041_FFIEC051_suppinst_
201903.pdf.

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with how these institutions report
operating lease liabilities internally.
The agencies have considered the
views expressed by these institutions
and propose to require that operating
lease liabilities be reported on the Call
Report balance sheet in Schedule RC,
item 20, ‘‘Other liabilities.’’ In Schedule
RC–G, Other Liabilities, operating lease
liabilities would be reported in item 4,
‘‘All other liabilities.’’ In subitems of
Schedule RC–G, item 4, institutions
must itemize and describe any
components of this item in amounts
greater than $100,000 that exceed 25
percent of the amount reported in item
4. Because of the expected prevalence of
operating lease liabilities, the agencies
also propose to add a new subitem with
the preprinted caption ‘‘Operating lease
liabilities’’ to item 4 to facilitate the
reporting of these liabilities when their
amount exceeds the reporting threshold
for itemizing and describing
components of ‘‘All other liabilities.’’
As described in the Call Report
Supplemental Instructions for June
2019, while the agencies are in the
process of proposing this instructional
revision, the agencies are permitting
institutions to report the lease liability
for operating leases in either Schedule
RC–G, item 4, ‘‘All other liabilities,’’ or
Schedule RC–M, item 5.b, ‘‘Other
borrowings.’’ 47 If an institution chooses
the latter reporting treatment, the
amount of operating lease liabilities
reported in Schedule RC–M, item 5.b,
should also be reported in Schedule
RC–M, item 10.b, ‘‘Amount of ‘Other
borrowings’ that are secured,’’ and this
amount should not be reported in
Schedule RC–O, item 7, as ‘‘Unsecured
‘Other borrowings’.’’ An institution may
choose to amend the reporting of
operating lease liabilities in its Call
Report for March 31, 2019, consistent
with this instructional guidance.
I. Reporting Home Equity Lines of Credit
That Convert From Revolving to NonRevolving 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. The
amounts of closed-end loans secured by
1–4 family residential properties are
reported in Schedule RC–C, Part I, item
47 See the Call Report Supplemental Instructions
for June 2019, https://www.ffiec.gov/pdf/FFIEC_
forms/FFIEC031_FFIEC041_FFIEC051_suppinst_
201906.pdf.

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1.c.(2)(a) or (b), depending on whether
the loan is a first or a junior lien.48
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
repaid over the remaining loan term
through monthly payments. Because the
Call Report instructions do not address
the reporting treatment for a home
equity line of credit when it reaches its
end-of-draw period and converts from
revolving to nonrevolving status, the
agencies have found diversity in how
these credits are reported in Schedule
RC–C, Part I, items 1.c.(1), 1.c.(2)(a), and
1.c.(2)(b), and in other Call Report items
that use the definitions of these three
loan categories.
In September 2015, to address this
absence of instructional guidance and
promote consistency in reporting, the
agencies proposed to clarify the
instructions for reporting loans secured
by 1–4 family residential properties by
specifying that after a revolving openend line of credit has converted to nonrevolving closed-end status, the loan
should be reported as closed-end in
Schedule RC–C, Part I, item 1.c.(2)(a) or
(b), as appropriate.49 As discussed in a
subsequent notice,50 the agencies
received a number of comments that
raised concerns with the proposal. In
particular, some commenters stated that
reclassifying HELOCs after the draw
period could raise operational
challenges for institutions’ loan systems
that would require additional time to
implement. Based on the feedback
received, the agencies did not proceed
with their proposed instructional
clarification at that time.
The agencies continue to believe that
it is important to collect accurate data
on loans secured by 1–4 family
residential properties in the Call Report.
Consistent classification of HELOCs
based on the status of the draw period
is particularly important for the
agencies’ safety and soundness
monitoring. Due to the structure of
HELOCs discussed above, borrowers
generally are not required to make
48 Institutions report additional information on
open-end and closed-end loans secured by 1–4
family residential properties in certain other Call
Report schedules in accordance with the loan
category definitions in Schedule RC–C, Part I, items
1.c.(1), 1.c.(2)(a), and 1.c.(2)(b).
49 See 80 FR 56539 (September 18, 2015).
50 See 81 FR 45357 (July 13, 2016).

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Federal Register / Vol. 84, No. 193 / Friday, October 4, 2019 / Notices

principal repayments during the draw
period, which may create a financial
shock for borrowers when they must
make a balloon payment or begin
regular monthly repayments after the
draw period. With some institutions
reporting HELOCs past the draw period
as revolving, this increases the amounts
outstanding, charge-offs, recoveries, past
dues, and nonaccruals reported in the
open-end category relative to the
amounts reported by institutions that
treat HELOCs past the draw period as
closed-end, which makes the data less
useful for agency comparisons and
safety and soundness monitoring. In
addition, in ASU No. 2019–04,51 the
FASB amended ASC Subtopic 326–20
on credit losses to require that, when
presenting credit quality disclosures in
notes to financial statements prepared
in accordance with U.S. GAAP, an
entity must separately disclose line-ofcredit arrangements that are converted
to term loans from line-of-credit
arrangements that remain in revolving
status. After further review, the agencies
have determined that there would be
little or no impact to the regulatory
capital calculations, FDIC deposit
insurance assessments, or other
regulatory reporting requirements as a
result of this clarification, which were
other concerns previously raised by
commenters.
Therefore, the agencies are reproposing to clarify the Call Report
instructions for Schedule RC–C, Part I,
items 1.c.(1), 1.c.(2)(a), and 1.c.(2)(b), to
state that revolving open-end lines of
credit that have converted to nonrevolving closed-end status should be
reported as closed-end loans. The effect
of this clarification would extend to the
instructions for the following data items
that reference the Schedule RC–C, Part
I, loan category definitions for open-end
and closed-end loans secured by 1–4
family residential properties:
• Schedule RI–B, Part I, items 1.c.(1),
1.c.(2)(a), and 1.c.(2)(b);
• Schedule RC–C, Part I,
Memorandum items 2.a.(1) through (6)
and 2.b.(1) through (6);
• Schedule RC–M, items
13.a.(1)(c)(1), 13.a.(1)(c)(2)(a), and
13.a.(1)(c)(2)(b) on the FFIEC 031 and
FFIEC 041;
• Schedule RC–N, items 1.c.(1),
1.c.(2)(a), and 1.c.(2)(b);
• Schedule RC–N, items 12.a.(3)(a),
12.a.(3)(b)(1), and 12.a.(3)(b)(2) on the
FFIEC 031 and FFIEC 041;

• Schedule RC–O, Memorandum
items 18.b, 18.c, and 18.d on the FFIEC
031 and FFIEC 041;
• Schedule RC–S, Memorandum
items 2.a, 2.b, and 2.c on the FFIEC 031
and FFIEC 041; and
• Schedule SU, items 6 and 6.a on the
FFIEC 051.
This instructional clarification would
not apply to the reporting of assetbacked securities collateralized by
HELOCs in Schedule RC–B,
Memorandum item 5.b, on the FFIEC
031 and FFIEC 041 and Schedule RC–
D, Memorandum item 5.b on the FFIEC
031 and securitizations of closed-end 1–
4 family residential loans and home
equity lines in Schedule RC–S, columns
A and B, on the FFIEC 031, and
columns A and G on the FFIEC 041.
To address prior comments regarding
the time needed for any systems
changes, the agencies propose that
compliance with the clarified
instructions would not be required until
the March 31, 2021, report date.
Institutions not currently reporting in
accordance with the clarified
instructions would be permitted, but not
required, to report in accordance with
the clarified instructions before that
date.
III. Timing
The agencies propose to make the
capital-related reporting changes in this
notice effective the same quarters as the
effective dates of the various currently
final or potential final capital rules
discussed in this notice. The agencies
also propose that the changes in the
scope of the FFIEC 031 Call Report and
in the reporting of operating lease
liabilities would be effective March 31,
2020, and the changes in the reporting
of construction, land development, and
other land loans with interest reserves
and home equity lines of credit would
be effective March 31, 2021. The
agencies invite comment on any
difficulties that institutions would
expect to encounter in implementing
the systems changes necessary to
accommodate the proposed revisions to
the Call Reports and the FFIEC 101
report or the minimum time required to
make systems changes to implement
these changes.
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.
IV. Request for Comment

51 ASU

No. 2019–04, ‘‘Codification Improvements
to Topic 326, Financial Instruments—Credit Losses,
Topic 815, Derivatives and Hedging, and Topic 825,
Financial Instruments,’’ issued in April 2019.

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Public comment is requested on all
aspects of this joint notice. Comment is
specifically invited on:

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(a) As an alternative to the approach
proposed for reporting in Schedule RC–
R, Part I, in the FFIEC 041 and FFIEC
051 Call Reports for March 31, 2020, by
non-advanced approaches institutions
that choose not to early adopt the
simplifications rule (discussed in
Section II.A.1. above), which would
have the agencies provide instructions
on how such institutions should
complete this schedule as of that report
date, whether the agencies should
instead provide separate columns in
Schedule RC–R, Part I, in the FFIEC 041
and FFIEC 051 Call Reports for the
March 31, 2020, report date that would
enable institutions to report in either the
column for the simplifications rule or
the column for the current capital rule
for that report date? This alternative
approach would be similar to the
proposed two-column approach in
Schedule RC–R, Part I, for the FFIEC
031 Call Report, but the two columns
would be included in the FFIEC 041 and
FFIEC 051 Call Reports only for the
March 31, 2020, report date and the
second column would be removed from
these two reports effective June 30,
2020, when the simplifications rule
would apply to all non-advanced
approaches institutions.
(b) For advanced approaches banking
organizations, whether the agencies
should include items related to LTD and
TLAC amounts, ratios, and the TLAC
buffer in the FFIEC 101. Please describe
the benefits and drawbacks of including
these items in the FFIEC 101.
(c) For the reporting of derivatives
data in Call Report Schedules RC–D,
RC–F, RC–G, RC–L (or SU on the 051),
and RC–R, Part II, the degree to which
the agencies should align the reporting
approaches applicable to these
schedules. In particular, please describe
how the agencies can ensure data
consistency while reducing the burden
of reporting the fair values, notional
amounts, and exposure amounts of
derivatives for settled-to-market and
collateralized-to-market derivatives in
Schedules RC–D, RC–F, RC–G, RC–L (or
SU on the 051), and RC–R, Part II, as
applicable. Please address whether the
agencies should adopt a consistent
classification of derivatives by asset
class (e.g., interest rate, energy, and
volatility derivative contracts) and by
product type (e.g., cleared swap, futures
contract, exchange-traded option).
(d) 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;
(e) The accuracy of the agencies’
estimates of the burden of the

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Federal Register / Vol. 84, No. 193 / Friday, October 4, 2019 / Notices
information collections as they are
proposed to be revised, including the
validity of the methodology and
assumptions used;
(f) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(g) 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
(h) 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.
Dated: October 1, 2019.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the
Comptroller of the Currency.
Board of Governors of the Federal Reserve
System, September 30, 2019.
Ann E. Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on September
30, 2019.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2019–21659 Filed 10–3–19; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P

DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Notice of OFAC Sanctions Actions
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:

The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing the names
of one or more persons, aircraft, and
vessel that have been placed on OFAC’s
Specially Designated Nationals and
Blocked Persons List based on OFAC’s
determination that one or more
applicable legal criteria were satisfied.
All property and interests in property
subject to U.S. jurisdiction of these
persons, aircraft, and this vessel are
blocked, and U.S. persons are generally
prohibited from engaging in transactions
with them.
DATES: See SUPPLEMENTARY INFORMATION
section for effective date(s).
FOR FURTHER INFORMATION CONTACT:
OFAC: Associate Director for Global
Targeting, tel.: 202–622–2420; Assistant
Director for Sanctions Compliance &
Evaluation, tel.: 202–622–2490;

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SUMMARY:

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Assistant Director for Licensing, tel.:
202–622–2480; or Assistant Director for
Regulatory Affairs, tel.: 202–622–4855.
SUPPLEMENTARY INFORMATION:
Electronic Availability
The Specially Designated Nationals
and Blocked Persons List and additional
information concerning OFAC sanctions
programs are available on OFAC’s
website (https://www.treasury.gov/ofac).
Notice of OFAC Actions
On September 30, 2019, OFAC
determined that the property and
interests in property subject to U.S.
jurisdiction of the following persons
and the following aircraft and vessel
subject to U.S. jurisdiction are blocked
under the relevant sanctions authorities
listed below.
Individuals
1. ASLANOV, Dzheykhun Nasimi Ogly
(a.k.a. ASLANOV, Jay; a.k.a. ASLANOV,
Jayhoon), Russia; DOB 01 Jan 1990; POB
Sumgait, Azerbaijan; nationality Russia;
Gender Male; Passport 629512112 (Russia);
National ID No. 2504139886 (individual)
[CYBER2] [ELECTION–EO13848] (Linked To:
INTERNET RESEARCH AGENCY LLC).
Designated pursuant to section 2(a)(ii) of
Executive Order 13848 of September 12,
2018, ‘‘Imposing Certain Sanctions in the
Event of Foreign Interference in a United
States Election,’’ (E.O. 13848) for having
materially assisted, sponsored, or provided
financial, material, or technological support
for, or goods or services to or in support of,
the INTERNET RESEARCH AGENCY, an
entity whose property and interests in
property are blocked pursuant to E.O. 13848.
Also designated pursuant to section
2(a)(iii) of E.O. 13848 for having acted or
purported to act for or on behalf of, directly
or indirectly, the INTERNET RESEARCH
AGENCY, an entity whose property and
interests in property are blocked pursuant to
E.O. 13848.
2. BURCHIK, Mikhail Leonidovich (a.k.a.
ABRAMOV, Mikhail), Russia; DOB 07 Jun
1986; Gender Male (individual) [CYBER2]
[ELECTION–EO13848] (Linked To:
INTERNET RESEARCH AGENCY LLC).
Designated pursuant to section 2(a)(ii) of
E.O. 13848 for having materially assisted,
sponsored, or provided financial, material, or
technological support for, or goods or
services to or in support of, the INTERNET
RESEARCH AGENCY, an entity whose
property and interests in property are
blocked pursuant to E.O. 13848.
Also designated pursuant to section
2(a)(iii) of E.O. 13848 for having acted or
purported to act for or on behalf of, directly
or indirectly, the INTERNET RESEARCH
AGENCY, an entity whose property and
interests in property are blocked pursuant to
E.O. 13848.
3. KUZMIN, Denis Igorevich, Russia; DOB
18 Dec 1990; Gender Male (individual)
[ELECTION–EO13848] (Linked To:
INTERNET RESEARCH AGENCY LLC).

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Designated pursuant to section 2(a)(ii) of
E.O. 13848 for having materially assisted,
sponsored, or provided financial, material, or
technological support for, or goods or
services to or in support of, the INTERNET
RESEARCH AGENCY, an entity whose
property and interests in property are
blocked pursuant to E.O. 13848.
Also designated pursuant to section
2(a)(iii) of E.O. 13848 for having acted or
purported to act for or on behalf of, directly
or indirectly, the INTERNET RESEARCH
AGENCY, an entity whose property and
interests in property are blocked pursuant to
E.O. 13848.
4. NESTEROV, Igor Vladimirovich, Russia;
DOB 07 Feb 1985; citizen Russia; Gender
Male (individual) [ELECTION–EO13848]
(Linked To: INTERNET RESEARCH AGENCY
LLC).
Designated pursuant to section 2(a)(ii) of
E.O. 13848 for having materially assisted,
sponsored, or provided financial, material, or
technological support for, or goods or
services to or in support of, the INTERNET
RESEARCH AGENCY, an entity whose
property and interests in property are
blocked pursuant to E.O. 13848.
Also designated pursuant to section
2(a)(iii) of E.O. 13848 for having acted or
purported to act for or on behalf of, directly
or indirectly, the INTERNET RESEARCH
AGENCY, an entity whose property and
interests in property are blocked pursuant to
E.O. 13848.
5. PODKOPAEV, Vadim Vladimirovich
(a.k.a. PODKOPAYEV, Vadim), Russia; DOB
01 May 1985; Gender Male (individual)
[CYBER2] [ELECTION–EO13848] (Linked To:
INTERNET RESEARCH AGENCY LLC).
Designated pursuant to section 2(a)(ii) of
E.O. 13848 for having materially assisted,
sponsored, or provided financial, material, or
technological support for, or goods or
services to or in support of, the INTERNET
RESEARCH AGENCY, an entity whose
property and interests in property are
blocked pursuant to E.O. 13848.
Also designated pursuant to section
2(a)(iii) of E.O. 13848 for having acted or
purported to act for or on behalf of, directly
or indirectly, the INTERNET RESEARCH
AGENCY, an entity whose property and
interests in property are blocked pursuant to
E.O. 13848.
6. PRIGOZHIN, Yevgeniy Viktorovich
(a.k.a. PRIGOZHIN, Evgeny), Russia; DOB 01
Jun 1961; Gender Male (individual)
[UKRAINE–EO13661] [CYBER2]
[ELECTION–EO13848] (Linked To:
INTERNET RESEARCH AGENCY LLC).
Designated pursuant to section 2(a)(ii) of
E.O. 13848 for having materially assisted,
sponsored, or provided financial, material, or
technological support for, or goods or
services to or in support of, the INTERNET
RESEARCH AGENCY, an entity whose
property and interests in property are
blocked pursuant to E.O. 13848.
7. VENKOV, Vladimir Dmitriyevich (a.k.a.
VENKOV, Vladimir), Russia; DOB 28 May
1990; Gender Male (individual) [CYBER2]
[ELECTION–EO13848] (Linked To:
INTERNET RESEARCH AGENCY LLC).
Designated pursuant to section 2(a)(ii) of
E.O. 13848 for having materially assisted,

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