30-Day Federal Register Notice

74784

Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices

The associated collection of
information is summarized below.

CFR section

273.5(b)—Ridership
data.
273.5(c)—Certified
schedule.
Total ...................

Title: Metrics and Minimum
Standards for Intercity Passenger Rail
Service.

Respondent
universe
1 railroad ...................

12

1

1 railroad ...................

7

1

1 railroad ...................

19

1

Form Numbers: n/a.
Respondent Universe: 1 (Amtrak).
Frequency of Submission: varied;
monthly; yearly.
Total Annual Responses: 19.
Total Estimated Annual Burden: 49
hours.
Total Cost Equivalent: $3,796.
Under 44 U.S.C. 3507(a) and 5 CFR
1320.5(b) and 1320.8(b)(3)(vi), FRA
informs all interested parties that a
respondent is not required to respond
to, conduct or sponsor a collection of
information unless it displays a
currently valid OMB control number.
Authority: 44 U.S.C. 3501–3520.
Brett A. Jortland,
Deputy Chief Counsel.
[FR Doc. 2020–25835 Filed 11–20–20; 8:45 am]
BILLING CODE 4910–06–P

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE
CORPORATION
Agency Information Collection
Activities; Submission for OMB
Review; Comment Request
Office of the Comptroller of the
Currency (OCC), Treasury; Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Joint notice and request for
comment.
AGENCY:

In accordance with the
requirements of the Paperwork

SUMMARY:

2 The total cost equivalent is derived from the
Surface Transportation Board’s Full Year Wage A&B
data series using the appropriate employee group
hourly wage rate that includes a 75-percent
overhead charge.

VerDate Sep<11>2014

Average time
per
responses
(hour)

Total annual
responses

17:07 Nov 20, 2020

Jkt 253001

Reporting Burden:

Total annual burden hours

22 hours (10 hour start-up burden + average response time).
27 hours (20 hour start-up burden + average response time).

$1,704

49 hours .......................................................

3,796

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. On July 22, 2020, the agencies,
under the auspices of the Federal
Financial Institutions Examination
Council (FFIEC), requested public
comment for 60 days on a proposal to
revise and extend the Consolidated
Reports of Condition and Income (Call
Reports) (FFIEC 031, FFIEC 041, and
FFIEC 051) and the Regulatory Capital
Reporting for Institutions Subject to the
Advanced Capital Adequacy Framework
(FFIEC 101), which are currently
approved collections of information.
In the July 2020 notice, the Board,
under the auspices of the FFIEC, also
requested public comment for 60 days
on a proposal to revise and extend the
Report of Assets and Liabilities of U.S.
Branches and Agencies of Foreign Banks
(FFIEC 002) and the Report of Assets
and Liabilities of a Non-U.S. Branch that
is Managed or Controlled by a U.S.
Branch or Agency of a Foreign (NonU.S.) Bank (FFIEC 002S), which also are
currently approved collections of
information. The Board published this
proposal on behalf of the agencies.
Finally, on October 4, 2019, the
agencies, under the auspices of the
FFIEC, requested public comment for 60
days on proposed Call Report and FFIEC
101 revisions to implement the
agencies’ proposed total loss absorbing
capacity (TLAC) investments rule for
advanced approaches banking
organizations.
The comment period for the July 2020
notice ended on September 21, 2020.
The comment period for the October
2019 notice ended on December 3, 2019,
and the agencies subsequently adopted
a TLAC investments final rule. As
described in the SUPPLEMENTARY
INFORMATION section, after considering
the comments received on the two
notices, the agencies are proceeding

PO 00000

Frm 00121

Fmt 4703

Sfmt 4703

Total cost
equivalent 2

2,092

with the proposed revisions to the
reporting forms and instructions for the
Call Reports, FFIEC 101, and FFIEC 002
with certain modifications. The
SUPPLEMENTARY INFORMATION section
also discusses certain Call Report
instructional clarifications.
The agencies hereby give notice of
their plan to submit to OMB a request
to approve the revision and extension of
these information collections, and again
invite comment on the renewal.
DATES: Comments must be submitted on
or before December 23, 2020.
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,
FFIEC 101, and FFIEC 002 Revisions,’’
will be shared among the agencies.
Written comments and
recommendations for the proposed
information collections should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. You may find these particular
information collections by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
OCC: You may submit comments,
which should refer to ‘‘Call Report,
FFIEC 101, and FFIEC 002 Revisions,’’
by any of the following methods:
• Email: [email protected].
• Mail: Chief Counsel’s Office, Office
of the Comptroller of the Currency,
Attention: 1557–0081 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–
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

E:\FR\FM\23NON1.SGM

23NON1

Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
information collection beginning on the
date of publication of the second notice
for this collection by the following
method:
• Viewing Comments Electronically:
Go to www.reginfo.gov. 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.
Board: You may submit comments,
which should refer to ‘‘Call Report,
FFIEC 101, and FFIEC 002 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,
FFIEC 101, and FFIEC 002 Revisions’’ in
the subject line of the message.
• 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.
FDIC: You may submit comments,
which should refer to ‘‘Call Report,
FFIEC 101, and FFIEC 002 Revisions,’’
by any of the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal/.

VerDate Sep<11>2014

17:07 Nov 20, 2020

Jkt 253001

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, FFIEC 101, and
FFIEC 002 Revisions’’ in the subject line
of the message.
• Mail: Manuel E. Cabeza, Counsel,
Attn: Comments, Room MB–3128,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street 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 by
telephone at (877) 275–3342 or (703)
562–2200.
Additionally, commenters may send a
copy of their comments to the OMB
desk officers for the agencies by mail to
the Office of Information and Regulatory
Affairs, U.S. Office of Management and
Budget, New Executive Office Building,
Room 10235, 725 17th Street NW,
Washington, DC 20503; by fax to (202)
395–6974; or by email to oira_
[email protected].
FOR FURTHER INFORMATION CONTACT: For
further information about the proposed
revisions to the information collections
discussed in this notice, please contact
any of the agency staff whose names
appear below. In addition, copies of the
report forms for the Call Reports, FFIEC
101, FFIEC 002, and FFIEC 002S 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

PO 00000

Frm 00122

Fmt 4703

Sfmt 4703

74785

II. Current Actions
A. Introduction
B. Comments Received on the July 2020
Proposed Call Report, FFIEC 101, and
FFIEC 002 Revisions
1. Board Regulation D Amendments
2. Provisions for Credit Losses on OffBalance-Sheet Credit Exposures
3. Other Comments Received
C. Comments Received on Revisions
Related to the Total Loss Absorbing
Capacity Investments Rule
D. Additional Instructional Matters
1. Uncollectible Accrued Interest
Receivable Under ASC Topic 326
2. Shared Fees and Commissions From
Securities-Related and Insurance
Activities
3. Pledged Equity Securities
III. Timing
IV. Request for Comment

I. Affected Reports
The proposed changes discussed
below affect the Call Reports, FFIEC
101, and FFIEC 002.
A. Call Reports
The agencies propose to extend for
three years, with revision, the Call
Reports.
Report Title: Consolidated Reports of
Condition and Income.
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.
OCC
OMB Control No.: 1557–0081.
Estimated Number of Respondents:
1,111 national banks and federal savings
associations.
Estimated Average Burden per
Response: 41.92 burden hours per
quarter to file.
Estimated Total Annual Burden:
186,292 burden hours to file.
Board
OMB Control No.: 7100–0036.
Estimated Number of Respondents:
739 state member banks.
Estimated Average Burden per
Response: 45.40 burden hours per
quarter to file.
Estimated Total Annual Burden:
134,202 burden hours to file.

E:\FR\FM\23NON1.SGM

23NON1

74786

Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices

FDIC
OMB Control No.: 3064–0052.
Estimated Number of Respondents:
3,263 insured state nonmember banks
and state savings associations.
Estimated Average Burden per
Response: 39.96 burden hours per
quarter to file.
Estimated Total Annual Burden:
521,558 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 35.27 (FFIEC 051), 55.20
(FFIEC 041), and 85.81 (FFIEC 031),
using data from the June 30, 2020, Call
Reports. The estimated burden hours for
the currently approved reports, which
are based on data as of December 31,
2019, are 37.62 (FFIEC 051), 51.02
(FFIEC 041), and 96.30 (FFIEC 031).
These burden estimates reflect the
effects of the Call Report revisions
related to COVID–19 included in the
agencies’ emergency clearance requests
that were approved by OMB in the
second quarter of 2020 and
subsequently included in the July 2020
notice. Thus, the effects of the other
revisions included in this notice related
to U.S. GAAP, international remittance
transfers, and TLAC investments,
together with the use of June 30, 2020,
data for estimating burden, results in an
increase (decrease) in estimated average
burden hours per quarter by type of
report of (2.35) (FFIEC 051), 4.18 (FFIEC
041), and (10.49) (FFIEC 031) since
OMB’s most recent approval of Call
Report revisions.
The changes in estimated burden
primarily are due to three factors. First,
the burden estimates in this notice
incorporate a decrease of approximately
100 in the number of institutions that
file Call Reports used in the agencies’
last estimates that were submitted to
OMB. Second, the agencies reduced
their prior estimates of the number of
institutions that were expected to file
the FFIEC 051 Call Report after
expanding the eligibility for this version
of the Call Report to institutions with
between $1 billion and $5 billion in
total assets. The agencies originally
expected about four fifths of newly
eligible institutions to choose to file the
FFIEC 051, while the actual adoption
rate as of June 30, 2020, was
significantly lower at less than one third
of newly eligible institutions. Newly
eligible institutions that chose not to file
the streamlined FFIEC 051 continued to
file the more detailed FFIEC 041, so the

VerDate Sep<11>2014

17:07 Nov 20, 2020

Jkt 253001

lower than expected percentage of new
FFIEC 051 filers resulted in an increase
in estimated burden for the FFIEC 041
and a decrease in estimated burden for
the FFIEC 051. Third, the agencies
reduced the estimated number of
qualifying institutions that were
expected to opt into the community
bank leverage ratio (CBLR) framework
for reporting regulatory capital in the
Call Reports. The agencies previously
expected up to three fifths of
institutions with total assets of less than
$10 billion would opt into this
simplified capital framework, while
only two fifths of institutions of this size
actually reported under the CBLR
framework as of June 30, 2020. The
lower than expected percentage of
institutions opting into the CBLR
framework, and the larger than expected
percentage continuing to report under
the agencies’ risk-based capital
framework, contributed to an increase in
estimated burden for both the FFIEC 041
and FFIEC 051 versions of the Call
Report.
The estimated burden per response
for the quarterly filings of the Call
Report is an average that varies by
agency because of differences in the
composition of the institutions under
each agency’s supervision (e.g., size
distribution of institutions, types of
activities in which they are engaged,
and existence of foreign offices).
Type of Review: Extension and
revision of currently approved
collections.
Legal Basis and Need for Collections
The Call Report information
collections are mandatory: 12 U.S.C. 161
(national banks), 12 U.S.C. 324 (state
member banks), 12 U.S.C. 1817 (insured
state nonmember commercial and
savings banks), and 12 U.S.C. 1464
(federal and state savings associations).
At present, except for selected data
items and text, these information
collections are not given confidential
treatment.
Banks and savings associations
submit Call Report data to the agencies
each quarter for the agencies’ use in
monitoring the condition, performance,
and risk profile of individual
institutions and the industry as a whole.
Call Report data serve a regulatory or
public policy purpose by assisting the
agencies in fulfilling their shared
missions of ensuring the safety and
soundness of financial institutions and
the financial system and protecting
consumer financial rights, as well as
agency-specific missions affecting
national and state-chartered institutions,
such as conducting monetary policy,
ensuring financial stability, and

PO 00000

Frm 00123

Fmt 4703

Sfmt 4703

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: 5
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:
13,480 burden hours to file.
Board
OMB Control No.: 7100–0319.
Estimated Number of Respondents: 4
state member banks; 5 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 1and 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:
10,784 burden hours for state member

E:\FR\FM\23NON1.SGM

23NON1

Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices
banks to file; 60 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.
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 1 is required to report
quarterly regulatory capital data on the
FFIEC 101. Each top-tier advanced
approaches institution and top-tier
Category III institution 2 is required to
report supplementary leverage ratio
information on the FFIEC 101. The
FFIEC 101 information collections are
mandatory for advanced approaches and
top-tier Category III 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
(federal and state savings associations),
and 12 U.S.C. 1844(c), 3106, and 3108
(intermediate holding 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 applicable capital requirements
and the adequacy of the entity’s capital
under the Advanced Capital Adequacy
Framework 3 and the supplementary
leverage ratio,4 as applicable; to
evaluate the impact of the Advanced
Capital Adequacy Framework and the
1 12 CFR 3.100(b) (OCC); 12 CFR 217.100(b)
(Board); 12 CFR 324.100(b) (FDIC).
2 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12 CFR
324.2 (FDIC).
3 12 CFR part 3, subpart E (OCC); 12 CFR part 217,
subpart E (Board); 12 CFR part 324, subpart E
(FDIC).
4 12 CFR 3.10(c)(4) (OCC); 12 CFR 217.10(c)(4)
(Board); 12 CFR 324.10(c)(4) (FDIC).

VerDate Sep<11>2014

17:07 Nov 20, 2020

Jkt 253001

supplementary leverage ratio, as
applicable, 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
and top-tier Category III institutions in
understanding expectations relating to
the system development necessary for
implementation and validation of the
Advanced Capital Adequacy Framework
and the supplementary leverage ratio, as
applicable. Submitted data that are
released publicly will also provide other
interested parties with additional
information about advanced approaches
institutions’ and top-tier Category III
institutions’ regulatory capital.
C. FFIEC 002 and 002S
The Board proposes to extend for
three years, with revision, the FFIEC
002 and FFIEC 002S reports.
Report Titles: Report of Assets and
Liabilities of U.S. Branches and
Agencies of Foreign Banks; Report of
Assets and Liabilities of a Non-U.S.
Branch that is Managed or Controlled by
a U.S. Branch or Agency of a Foreign
(Non-U.S.) Bank.
Form Numbers: FFIEC 002; FFIEC
002S.
OMB Control Number: 7100–0032.
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.
Respondents: All state-chartered or
federally-licensed U.S. branches and
agencies of foreign banking
organizations, and all non-U.S. branches
managed or controlled by a U.S. branch
or agency of a foreign banking
organization.
Estimated Number of Respondents:
FFIEC 002—209; FFIEC 002S—38.
Estimated Average Burden per
Response: FFIEC 002—24.87 hours;
FFIEC 002S—6.0 hours.
Estimated Total Annual Burden:
FFEIC 002—20,791 hours; FFIEC 002S—
912 hours.
Type of Review: Revision of currently
approved collections.
Legal Basis and Need for Collection
On a quarterly basis, all U.S. branches
and agencies of foreign banks are
required to file the FFIEC 002, which is
a detailed report of condition with a
variety of supporting schedules. This
information is used to fulfill the
supervisory and regulatory requirements
of the International Banking Act of
1978. The data are also used to augment
the bank credit, loan, and deposit
information needed for monetary policy
and other public policy purposes. The
FFIEC 002S is a supplement to the

PO 00000

Frm 00124

Fmt 4703

Sfmt 4703

74787

FFIEC 002 that collects information on
assets and liabilities of any non-U.S.
branch that is managed or controlled by
a U.S. branch or agency of the foreign
bank. A non-U.S. branch is managed or
controlled by a U.S. branch or agency if
a majority of the responsibility for
business decisions, including but not
limited to decisions with regard to
lending or asset management or funding
or liability management, or the
responsibility for recordkeeping in
respect of assets or liabilities for that
foreign branch resides at the U.S. branch
or agency. A separate FFIEC 002S must
be completed for each managed or
controlled non-U.S. branch. The FFIEC
002S must be filed quarterly along with
the U.S. branch or agency’s FFIEC 002.
These information collections are
mandatory (12 U.S.C. 3105(c)(2),
1817(a)(1) and (3), and 3102(b)). Except
for select sensitive items, the FFIEC 002
is not given confidential treatment; the
FFIEC 002S is given confidential
treatment (5 U.S.C. 552(b)(4) and (8)).
The data from both reports are used for
(1) monitoring deposit and credit
transactions of U.S. residents; (2)
monitoring the impact of policy
changes; (3) analyzing structural issues
concerning foreign bank activity in U.S.
markets; (4) understanding flows of
banking funds and indebtedness of
developing countries in connection with
data collected by the International
Monetary Fund and the Bank for
International Settlements that are used
in economic analysis; and (5) assisting
in the supervision of U.S. offices of
foreign banks. The Federal Reserve
System collects and processes these
reports on behalf of all three agencies.
II. Current Actions
A. Introduction
On July 22, 2020, the agencies
proposed revisions to the Call Reports,
FFIEC 101, and FFIEC 002 related to
interim final rules and a final rule
issued in response to disruptions related
to COVID–19 that revise the agencies’
capital rule, the Board’s regulations on
reserve requirements and insider loans,
and the FDIC’s deposit insurance
assessment regulations. The proposed
revisions also resulted from certain
sections of the Coronavirus Aid, Relief,
and Economic Security Act (CARES
Act). The agencies received emergency
approvals from OMB to implement
these revisions as of the March 31, June
30, or September 30, 2020, report dates.
In addition, the agencies proposed
changes to the Call Reports and the
FFIEC 002 related to U.S. GAAP in the
July 2020 notice. Further, the agencies
proposed revisions to the Call Reports

E:\FR\FM\23NON1.SGM

23NON1

74788

Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices

in that notice to reflect the expiration of
the temporary exception for estimated
disclosures on international remittance
transfers and certain amendments to the
Remittance Rule (12 CFR 1005.30 et
seq.) recently finalized by the Consumer
Financial Protection Bureau (Bureau),5
which is a member of the FFIEC.
The comment period for the July 2020
notice ended on September 21, 2020.
The agencies received comments on the
proposed reporting changes covered in
the notice from two entities: A banking
trade association and a U.S. government
agency. In Section II.B, the agencies
provide more detail on the comments
received and the changes the agencies
are making in response to those
comments.
While most of the interim final rules
were finalized as proposed, there were
limited revisions to the Regulatory
Capital Rule: Revised Transition for the
Current Expected Credit Losses
Methodology for Allowances, published
in the Federal Register on March 27,
2020 (CECL interim final rule).6 In the
agencies’ final rule on this subject,
published in the Federal Register on
September 30, 2020,7 banking
organizations that ‘‘early adopted’’ the
current expected credit losses (CECL)
methodology during 2020 were
permitted to also use the 5-year 2020
CECL transition. Therefore, to be
consistent with the final rule, the
agencies will clarify the instructions to
address these banking organizations’
eligibility for the 5-year 2020 CECL
transition and are proceeding with the
other CECL-related regulatory capital
reporting revisions as proposed.
For institutions that have adopted
Accounting Standards Codification
(ASC) Topic 326, Financial
Instruments—Credit Losses, the
agencies proposed in the July 2020
notice to add new Memorandum item 8
to Schedule RI–B, Part II, Changes in
Allowances for Credit Losses, to all
three versions of the Call Report. This
Memorandum item would capture the
‘‘Estimated amount of expected
recoveries of amounts previously
written off included within the
allowance for credit losses on loans and
leases held for investment (included in
item 7, column A, ‘Balance end of
current period,’ above).’’ In proposing
this reporting change, the agencies
noted that, under ASC Topic 326,
institutions could, in some
circumstances, reduce the amount of the
allowance for credit losses that would
otherwise be calculated for a pool of
5 85

FR 34870 (June 5, 2020).
FR 17723 (March 31, 2020).
7 85 FR 61577 (September 30, 2020).
6 85

VerDate Sep<11>2014

17:07 Nov 20, 2020

Jkt 253001

assets with similar risk characteristics
that includes charged-off assets by the
estimated amount of expected
recoveries of amounts written off on
these assets. Upon further
consideration, the agencies have
decided to limit the collection of this
proposed Memorandum item to the
FFIEC 031 and FFIEC 041, and not to
add this Memorandum item to the
streamlined FFIEC 051, which has
reduced reporting requirements in
relation to the other two versions of the
Call Report.
On October 4, 2019, the agencies
published a 60-day PRA Federal
Register notice 8 for public comment on
proposed revisions to the Call Reports
and the FFIEC 101 that would
implement various changes to the
agencies’ regulatory capital rule that, as
of that date, the agencies had finalized
or were considering finalizing. The
notice included proposed reporting
revisions resulting from the proposed
TLAC investments rule. The agencies
did not proceed with the
implementation of the TLAC-related
reporting changes in January 2020 when
they finalized the other capital-related
reporting changes included in the
October 2019 notice,9 as the agencies
had not yet adopted a TLAC
investments final rule.
On October 20, 2020, the TLAC
investments rule was finalized.10 The
associated capital-related reporting
changes proposed in October 2019 along
with the agencies’ responses to the
comments received on the proposed
reporting revisions are discussed in
section II.C below. After carefully
considering the comments received on
the TLAC investments portion of the
October 2019 notice, the agencies are
adopting the reporting changes
proposed in that notice with the
modifications discussed in Section II.C
of this notice.
B. Comments Received on July 2020
Proposed Call Report, FFIEC 101, and
FFIEC 002 Revisions
1. Board Regulation D Amendments
The agencies received one comment
letter from a banking trade association
that raised concerns with the proposed
Call Report changes related to the
Board’s interim final rule amending
Regulation D (Reserve Requirements of
Depository Institutions, 12 CFR part
8 84

FR 53227 (October 4, 2019).
FR 4780 (January 27, 2020).
10 See the TLAC investments final rule attached
to OCC News Release 2020–137, Board Press
Release, and FDIC Press Release 115–2020, all of
which are dated October 20, 2020.
9 85

PO 00000

Frm 00125

Fmt 4703

Sfmt 4703

204) 11 that deletes the numeric limits
on transfers and withdrawals that may
be made each month from the definition
of ‘‘savings deposits.’’ The agencies also
proposed to make the same changes
related to the Regulation D amendments
to the FFIEC 002.
The commenter suggested aligning the
changes to the Call Report with the
Board’s proposed changes to the FR
2900, Report of Transaction Accounts,
Other Deposits and Vault Cash.12 The
commenter noted that the proposed
changes to the FR 2900 would
consolidate the reporting of ATS
accounts, NOW accounts/share drafts,
and telephone and preauthorized
transfer accounts together with total
savings deposits (including MMDAs) in
a new data item, ‘‘Other liquid
deposits.’’ In addition, for data items
collected annually on the FR 2900 for
the June 30 report date, the report has
been streamlined to collect only the data
items needed for the reserve
requirement exemption amount and low
reserve tranche that combines demand
deposits, NOW accounts, ATS accounts,
telephone and preauthorized transfer
accounts together with savings deposits
in a new data item, ‘‘New Transaction
Accounts.’’ In contrast, the Call Report
will continue to require institutions to
report transaction and nontransaction
accounts separately in Schedule RC–E.
The agencies note that the FR 2900
and Call Report serve two separate
purposes. The primary purpose of the
FR 2900 report is to collect data for the
construction of the monetary aggregates.
Although the Call Report can aid in the
construction of the monetary aggregates
by utilizing deposit data collected on a
quarterly basis, its primary purpose is to
serve as the principal source of financial
of data used for the supervision and
regulation of individual banks and
savings associations and for monitoring
the condition and performance of the
banking industry. As such, the Call
Report requires data to be reported on
a more granular level than the FR 2900
report requires. Furthermore, section
7(a)(5) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(a)(5)) requires time
and savings deposits to be reported
separately from demand deposits in Call
Reports. Therefore, the agencies believe
that even though Call Report Schedule
RC–E will maintain the requirement to
report transaction and nontransaction
accounts separately along with the
demand deposit component of total
transaction accounts and the
components of total nontransaction
accounts, institutions are familiar with
11 85
12 85

E:\FR\FM\23NON1.SGM

FR 23445 (April 28, 2020).
FR 54577 (September 2, 2020).

23NON1

Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices
the existing structure of Schedule RC–
E and have systems and procedures in
place for completing the schedule.
Accordingly, the agencies do not
anticipate that there would be a change
in Call Report burden resulting from the
retention of these deposit items in
Schedule RC–E.
Secondly, the commenter
recommended that a depositor’s
eligibility to hold a NOW account
should not be included in the criteria
assessment to determine the reporting
treatment for savings deposits for which
the numeric limits on transfers and
withdrawals have been removed. The
commenter noted that ‘‘if a firm does
not offer NOW accounts, they would be
required to report savings deposits as
NOW accounts, ATS accounts, or
telephone and preauthorized transfer
accounts (and as transaction accounts)
based on a depositor’s eligibility to hold
such account’’ and ‘‘for firms that do not
offer NOW accounts, the data necessary
to determine a depositor’s eligibility for
NOW accounts would not be readily
available.’’ In addition, the commenter
also noted that this reporting treatment
would be inconsistent with the
Regulation D definition of savings
deposits, as NOW account eligibility is
not a component of the definition. The
commenter believes gathering the data
necessary to distinguish these
depositors from other savings account
holders solely for regulatory reporting
purposes would create business and
systems challenges. The agencies agree
with the commenter that the depositor’s
eligibility to hold a NOW account
should not be included in the
assessment criteria for classification as a
‘‘savings deposit’’ as such reporting
would not be consistent with the
Regulation D definition of savings
deposits. Therefore, the agencies will
remove the depositor’s eligibility to
hold a NOW account from the
assessment criteria.
Thirdly, the commenter requested
clarification on how institutions should
report the components of retail sweep
arrangements in the Call Report.
Specifically, the commenter asked
whether institutions should continue to
report the nontransaction components
of, or savings deposits in, retail sweep
arrangements as nontransaction
accounts. If not, the commenter asked
whether institutions should strictly
follow the proposed assessment criteria
for the treatment of accounts where the
transfer limit has been removed. The
agencies have modified the description
of retail sweep arrangements to remove
references to transaction and
nontransaction components. Further,
institutions should not follow the

VerDate Sep<11>2014

17:07 Nov 20, 2020

Jkt 253001

proposed assessment criteria for the
treatment of accounts for which the
transfer limit has been removed.
Instead, institutions that offer valid
retail sweep programs should report
each component of the retail sweep
arrangement based on the customer
account agreement established by the
depository institution. Two key criteria
must be met for a valid retail sweep
program. These criteria are: (1) A
depository institution must establish by
agreement with its customer two
distinct, legally separate accounts; and
(2) the swept funds must actually be
moved between the customer’s accounts
on the depository institution’s official
books and records as of the close of
business on the day(s) on which the
depository institution intends to report
the funds as being in separate accounts.
Lastly, the commenter requested that
the Board confirm that savings deposits
or accounts described in 12 CFR
204.2(d)(2) would not be subject to
Regulation CC (Availability of Funds
and Collection of Checks, 12 CFR part
229) as a result of the recent
amendments to Regulation D. Because
Regulation CC continues to exclude
accounts described in 12 CFR
204.2(d)(2) from the Regulation CC
‘‘account’’ definition, the recent
amendments to Regulation D did not
result in savings deposits or accounts
described in 12 CFR 204.2(d)(2) now
being covered by Regulation CC.
2. Provisions for Credit Losses on OffBalance-Sheet Credit Exposures
The banking trade association
requested that the agencies permit
institutions that have not adopted
Accounting Standards Update No.
2016–13, Topic 326, Financial
Instruments—Credit Losses (ASU 2016–
13), to report their provisions for credit
losses on off-balance sheet credit
exposures as part of their provision
expense in Schedule RI, item 4, rather
than as part of other noninterest
expense in Schedule RI, item 7.d. The
agencies proposed to require the
reporting of provisions for credit losses
on off-balance sheet credit exposures in
Schedule RI, item 4, only for
institutions that have adopted ASU
2016–13.
The agencies do not want to create
diversity in reporting by allowing some
institutions that have not adopted ASU
2016–13 to choose to report their
provisions for credit losses on offbalance sheet credit exposures as part of
their provision expense in Schedule RI,
item 4, while other institutions continue
to report their provisions related to offbalance sheet credit exposures in
Schedule RI, item 7.d. Therefore, the

PO 00000

Frm 00126

Fmt 4703

Sfmt 4703

74789

agencies are not adopting the
commenter’s suggestion. The agencies
plan to consider whether to require the
reporting of provisions for credit losses
on off-balance sheet credit exposures by
all institutions that have not adopted
ASU 2016–13 as part of provisions for
credit losses in Schedule RI, item 4. If
the agencies decide to propose this
revision to the Call Report in the future,
they would do so through the standard
PRA notice and comment process.
The agencies are proceeding with the
proposed revision to require institutions
that have adopted ASU 2016–13 to
include provisions for credit losses on
off-balance sheet credit exposures in
Schedule RI, item 4, and to separately
report these provisions in Schedule RI–
B, Part II, Memorandum item 7.
3. Other Comments Received
The agencies also received comments
on the Call Report that were not
specifically related to any of the
proposed changes.
The U.S. government agency
requested that the agencies expand the
level of detail on interest and fee
income collected in the Call Report on
Schedule RI to align with each loan
category reported on Schedule RC–C,
Part I, Loans and Leases. The agencies
are declining to make any changes to the
level of detail on loan income at this
time. The agencies believe the current
level of detail strikes the appropriate
balance between the information
necessary for monitoring the condition
and performance of individual
institutions and the industry, as a
whole, with the effort required by those
organizations to separately collect and
report interest and fee income
information by loan category.
The banking trade association
supported the agencies’ actions during
the COVID–19-related disruptions to
permit institutions to electronically sign
Call Reports and encouraged the
agencies to permanently adopt an
electronic signature option for Call
Report filings. The agencies initially
permitted electronic signatures on Call
Reports as an accommodation to
provide institutions flexibility during
the COVID–19 disruptions. The agencies
are exploring options for the possible
adoption of standard protocols for
permitting the use of electronic
signatures on Call Reports on a
permanent basis.

E:\FR\FM\23NON1.SGM

23NON1

74790

Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices

C. Comments Received on Revisions
Related to the Total Loss Absorbing
Capacity Investments Rule
1. General Comments
The agencies received comment
letters from two banking trade
associations in response to the proposed
changes to the Call Reports and the
FFIEC 101 in the October 2019 notice
that would implement the rule changes
proposed in the TLAC investments
notice of proposed rulemaking (NPR).13
Commenters requested that any
changes to regulatory reporting related
to the TLAC investments NPR—
including changes to the Call Reports
and FFIEC 101—be implemented after
the effective date of the final rule. The
agencies concur, and are not
implementing associated changes to
regulatory reports until the June 30,
2021, report date. The TLAC
investments final rule’s effective date is
April 1, 2021.
Commenters further requested that
the agencies delay implementation of
the proposed changes to the Call
Reports and FFIEC 101 until 18 months
after the TLAC investments final rule
becomes effective to provide more time
to modify reporting systems and
identify exposures to ‘‘covered debt
instruments.’’ In addition, commenters
requested that the agencies not require
application of the final rule’s deduction
treatment to an exposure to a global
systemically important banking
organization until the reporting banking
organization has the information
necessary to determine whether such
exposure qualifies as a ‘‘covered debt
instrument.’’
As discussed in the preamble of the
TLAC investments final rule, the
agencies maintain the supervisory
expectation that large and
internationally active banking
organizations should be deeply
knowledgeable of the securities
exposures reported on their own
balance sheets, if only for the purposes
of prudent risk management. The final
rule will become effective on April 1,
2021, and associated changes to the Call
Reports and FFIEC 101 would be
implemented as of the June 30, 2021,
report date. The agencies believe the
effective date for the reporting changes
provides sufficient time for advanced
approaches banking organizations to
evaluate investments in covered debt
instruments and apply the final rule’s
deduction treatment. Further, the
agencies believe that the effective date
for the reporting changes provides
sufficient time for these banking
13 84

FR 13814 (April 8, 2019).

VerDate Sep<11>2014

17:07 Nov 20, 2020

organizations to change reporting
systems and accurately identify
exposures to covered debt instruments
for purposes of regulatory reporting.
2. Comments on FFIEC 101, Schedule A
A commenter remarked that the
agencies proposed to add new data item
56.a to Schedule A of the FFIEC 101 to
implement the deduction of covered
debt instruments; however, no
analogous data item would be added to
Schedule RC–R, Part I, of the Call
Reports and Schedule HC–R, Part I, of
the Consolidated Financial Statements
for Holding Companies (FR Y–9C).14
This commenter recommended adding a
similar data item to the Call Reports and
FR Y–9C.
While Schedule A of the FFIEC 101
collects similar information—capital
amounts, capital deductions, and ratios,
among other items—as Schedule RC–R,
Part I, of the Call Reports and Schedule
HC–R, Part I, of the FR Y–9C, the
information collected is not exactly the
same. Given that only large and
internationally active banking
organizations complete the FFIEC 101,
this form collects more granular
information on capital deductions in
comparison to the Call Reports and the
FR Y–9C. The addition of item 56.a only
on the FFIEC 101 is consistent with
prior practice. Therefore, in an effort to
minimize regulatory burden on
reporting forms completed by smaller
and less complex banking organizations,
the agencies will not add an analogous
data item to either the Call Reports or
FR Y–9C. For Call Report purposes, as
proposed in the October 2019 notice,
the agencies would revise the
instructions for items 11, 17, 24, and 45
of Schedule RC–R, Part I, in the FFIEC
031–FFIEC 041 instruction book to
effectuate the deductions from
regulatory capital for advanced
approaches banking organizations
related to investments in covered debt
instruments and excluded covered debt
instruments.
One commenter remarked that the FR
Y–9C included new reporting items for
long-term and TLAC amounts, ratios,
and the TLAC buffer. However, these
items were not included in the agencies’
proposed revisions to the FFIEC 101.
This commenter requested that such
data items not be added to the FFIEC
101, as this would constitute a
duplicative reporting requirement and
unnecessarily increase burden on
banking organizations that complete the
FFIEC 101. The agencies concur with
this commenter, as the Board’s TLAC
rule applies to only holding companies.
14 OMB

Jkt 253001

PO 00000

Number 7100–0128.

Frm 00127

Fmt 4703

Sfmt 4703

Therefore, such data items are only to be
reported on the FR Y–9C and are not
being added to the FFIEC 101.
D. Additional Instructional Matters
1. Uncollectible Accrued Interest
Receivable Under ASC Topic 326
In April 2019, the Financial
Accounting Standards Board (FASB)
issued ASU No. 2019–04, ‘‘Codification
Improvements to Topic 326, Financial
Instruments—Credit Losses, Topic 815,
Derivatives and Hedging, and Topic
825, Financial Instruments,’’ which
amended ASC Topic 326 to allow an
institution to make certain accounting
policy elections for accrued interest
receivable balances, including a
separate policy election, at the class of
financing receivable or major securitytype level, to charge off any
uncollectible accrued interest receivable
by reversing interest income,
recognizing credit loss expense (i.e.,
provision expense), or a combination of
both. The Glossary entry for ‘‘Accrued
Interest Receivable’’ in the Call Report
instructions currently references the
following accounting policy elections in
ASU 2019–04:
• Institutions may elect to separately
present accrued interest receivable from
the associated financial asset, and the
accrued interest receivable is presented
net of an allowance for credit losses
(ACL), if any; and
• Institutions that charge off
uncollectible accrued interest receivable
in a timely manner, i.e., in accordance
with the Glossary entry for ‘‘Nonaccrual
Status,’’ may elect, at the class of
financing receivable or the major
security-type level, not to measure an
ACL for accrued interest receivable.
Although this Glossary entry does not
currently provide for the ASU’s separate
accounting policy election for the
charge-off of uncollectible accrued
interest receivable at the class of
financing receivable or major securitytype level, this election is specifically
addressed in the Interagency Policy
Statement on Allowances for Credit
Losses issued in May 2020.15
Accordingly, in the Call Report
Supplemental Instructions issued by the
FFIEC for the September 30, 2020,
report date,16 the FFIEC advised that, for
Call Report purposes, an institution that
has adopted ASC Topic 326 may make
the charge-off election for accrued
interest receivable balances in ASU
2019–04 separately from the other
elections for these balances in the ASU.
15 85

FR 32991 (June 1, 2020).

16 https://www.ffiec.gov/pdf/FFIEC_forms/

FFIEC031_FFIEC041_FFIEC051_suppinst_
202009.pdf.

E:\FR\FM\23NON1.SGM

23NON1

Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices
The FFIEC also stated that an institution
may charge off uncollectible accrued
interest receivable against an ACL for
Call Report purposes.
The agencies plan to update the Call
Report Glossary entry for ‘‘Accrued
Interest Receivable’’ to align the
instructions in this entry with the
elections permitted under U.S. GAAP
for institutions that have adopted ASC
326, which also would achieve
consistency with the discussion of
accrued interest receivable in the
Interagency Policy Statement on
Allowances for Credit Losses.
2. Shared Fees and Commissions From
Securities-Related and Insurance
Activities
Institutions report income from
certain securities-related and insurance
activities in Call Report Schedule RI,
Income Statement, items 5.d.(1) through
(5) on the FFIEC 031 and the FFIEC 041;
items 5.d.(1) and (2) on the FFIEC 051.
When an institution partners with, or
otherwise joins with, a third party to
conduct these securities-related or
insurance activities, and any fees and
commissions generated by these
activities are shared with the third
party, the Schedule RI instructions do
not currently address the reporting
treatment for these sharing
arrangements. Consequently,
institutions may report the gross fees
and commissions from these activities
in the appropriate subitem of Schedule
RI, item 5, ‘‘Other noninterest income,’’
and the third party’s share of the fees
and commissions separately as expenses
in Schedule RI, item 7.d, ‘‘Other
noninterest expense.’’ Alternatively,
institutions may report only their net
share of the fees or commissions in the
appropriate subitem of Schedule RI,
item 5.
The agencies believe that reporting
shared fees and commissions on a net
basis is preferable to gross reporting and
is analogous to how income from certain
other income-generating activities is
reported in the Call Report income
statement, including securitization
income and servicing fee income, which
are currently reported net of specified
expenses and costs.
This net approach better represents an
institution’s income from a securitiesrelated or insurance activity engaged in
jointly with a third party than when the
third party’s share of the fees and
commissions is separately reported as a
noninterest expense in another income
statement data item. As a result, the
agencies plan to clarify the existing
Schedule RI instructions to ensure
consistent reporting on a net basis of
fees and commissions from securities-

VerDate Sep<11>2014

17:07 Nov 20, 2020

Jkt 253001

related and insurance activities that are
shared with third parties. Furthermore,
to avoid including repetitive language in
the instructions for the multiple
noninterest income items for income
from securities-related and insurance
activities in Schedule RI, a new nonreportable item 5.d captioned ‘‘Income
from securities-related and insurance
activities’’ would be added before the
existing 5.d subitems on the Call Report
forms and in the FFIEC 031–FFIEC 041
and FFIEC 051 instruction books. The
reporting treatment for arrangements
involving the sharing of fees and
commissions with third parties arising
from an institution’s securities
brokerage, investment banking,
investment advisory, securities
underwriting, insurance and annuity
sales, insurance underwriting, or any
other securities-related and insurance
activities would be explained once in
the new item 5.d instructions.
3. Pledged Equity Securities
In January 2016, the FASB issued
ASU 2016–01, ‘‘Recognition and
Measurement of Financial Assets and
Financial Liabilities.’’ As one of its main
provisions, the ASU requires
investments in equity securities, except
those accounted for under the equity
method and those that result in
consolidation, to be measured at fair
value with changes in fair value
recognized in net income. Thus, the
ASU eliminates the existing concept of
available-for-sale (AFS) equity
securities, which are measured at fair
value with changes in fair value
generally recognized in other
comprehensive income. As of December
31, 2020, all institutions will have been
required to adopt ASU 2016–01 and, as
a consequence, must report equity
securities with readily determinable fair
values not held for trading in Schedule
RC, Balance Sheet, item 2.c, ‘‘Equity
securities with readily determinable fair
values not held for trading,’’ instead of
Schedule RC–B, Securities, item 7,
‘‘Investments in mutual funds and other
equity securities with readily
determinable fair values.’’ Accordingly,
Schedule RC–B, item 7, is scheduled to
be removed effective December 31,
2020.
Institutions have long reported the
amount of held-to-maturity and AFS
securities reported in Schedule RC–B,
items 1 through 7, that are pledged to
secure deposits and for other purposes
in Schedule RC–B, Memorandum item
1, ‘‘Pledged securities.’’ Considering
that all institutions that previously
reported their AFS equity securities in
Schedule RC–B, item 7, now report
these securities in Schedule RC, item

PO 00000

Frm 00128

Fmt 4703

Sfmt 4703

74791

2.c, the agencies are updating the
instructions for Schedule RC–B,
Memorandum item 1, and Schedule RC,
item 2.c, to indicate that institutions
should include in Memorandum item 1
the fair value of pledged equity
securities with readily determinable fair
values not held for trading that are now
reported in Schedule RC, item 2.c. The
wording of existing footnote 1 to
Memorandum item 1 of Schedule RC–B
on the Call Report forms will be
similarly updated. These instructional
clarifications would ensure that pledged
equity securities formerly reportable as
AFS equity securities would continue to
be reported in Memorandum item 1
notwithstanding the change in
accounting for equity securities under
U.S. GAAP. Information on pledged
securities is an important element of the
agencies’ analysis of an institution’s
liquidity risk.
III. Timing
As stated in the July 2020 notice, the
reporting revisions associated with the
interim final rules, the final deposit
insurance assessments rule, and the
CARES Act provisions have been
approved by OMB through the
emergency clearance process, and these
revisions have taken effect for the March
31, 2020, Call Report and FFIEC 101; the
June 30, 2020, Call Report, FFIEC 101,
and FFIEC 002; or the September 30,
2020, FFIEC 002. Subject to OMB
approval, the reporting revisions for
which emergency approvals were
received will remain in effect,17 but
with instructional clarifications for the
modification to the eligibility in the
final rule for the 5-year 2020 CECL
transition provision. Also subject to
OMB approval, the additional revisions
to the Call Report and FFIEC 002
instructions proposed in the July 2020
notice that are related to the amendment
of the Board’s Regulation D,18 but with
the removal of NOW account eligibility
from the assessment criteria for ‘‘savings
deposit’’ classification, would be
effective for reporting beginning in the
first quarter of 2021.
For the accounting-related changes
discussed in Section II.C of the July
2020 notice,19 the revisions would take
effect March 31, 2021, except for the
revisions for last-of-layer hedging,
which would be implemented following
the FASB’s adoption of a final last-oflayer hedge accounting standard. A final
17 As stated in the July 2020 notice, the collection
of the new Call Report and FFIEC 002 data items
for which emergency approvals were received is
expected to be time-limited.
18 85 FR 44369 (July 22, 2020).
19 85 FR 44371–44374 (July 22, 2020).

E:\FR\FM\23NON1.SGM

23NON1

74792

Federal Register / Vol. 85, No. 226 / Monday, November 23, 2020 / Notices

standard is not expected to be issued
before the second half of 2021.
The reporting revisions to Schedule
RC–M for the international remittance
transfer items discussed in Section II.D
of the July 2020 notice 20 would take
effect March 31, 2021.21
The reporting changes to the Call
Reports and the FFIEC 101 for the TLAC
investments final rule would take effect
June 30, 2021.
The specific wording of the captions
for the new or revised Call Report,
FFIEC 101, and FFIEC 002 data items
discussed in the October 2019 and July
2020 notices and this notice and the
numbering of these data items should be
regarded as preliminary.
The Call Report instructional
clarifications to the Glossary entry for
‘‘Accrued Interest Receivable’’ and
Schedule RC–B for pledged equity
securities would take effect December
31, 2020, while the instructional
clarifications to Schedule RI for shared
fees and commissions from securitiesrelated and insurance activities would
take effect March 31, 2021.
IV. Request for Comment
Public comment is requested on all
aspects of this joint notice. Comment is
specifically invited on:
(a) Whether the proposed revisions to
the collections of information that are
the subject of this notice are necessary
for the proper performance of the
agencies’ functions, including whether
the information has practical utility;
(b) The accuracy of the agencies’
estimates of the burden of the
information collections as they are
proposed to be revised, including the
validity of the methodology and
assumptions used;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
information collections on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
20 85

FR 44374–44375 (July 22, 2020).
will report current Schedule RC–M,
item 16, in December 2020; will not report current
Schedule RC–M, item 16, at all in June 2021; and
will report the proposed revised Schedule RC–M,
item 16, in December 2021 (covering all of calendar
year 2021).
21 Institutions

VerDate Sep<11>2014

17:07 Nov 20, 2020

Jkt 253001

Comments submitted in response to
this joint notice will be shared among
the agencies.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the
Comptroller of the Currency.
Board of Governors of the Federal Reserve
System.
Ann E. Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
James P. Sheesley,
Acting Assistant Executive Secretary.
[FR Doc. 2020–25743 Filed 11–20–20; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P

DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment
Request on Information Collection for
Treasury Decision 9568, Methods To
Determine Taxable Income in
Connection With a Cost Sharing
Arrangement—IRC Section 482
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
AGENCY:

The Internal Revenue Service,
as part of its continuing effort to reduce
paperwork and respondent burden,
invites the general public and other
Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995.
Currently, the IRS is soliciting
comments concerning Treasury
Decision Methods to Determine Taxable
Income in connection with a Cost
Sharing Arrangement—IRC section 482.
DATES: Written comments should be
received on or before January 22, 2021
to be assured of consideration.
ADDRESSES: Direct all written comments
to Kinna Brewington, Internal Revenue
Service, Room 6526, 1111 Constitution
Avenue NW, Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the collection tools should be
directed to LaNita Van Dyke, at (202)
317–6009, at Internal Revenue Service,
Room 6526, 1111 Constitution Avenue
NW, Washington, DC 20224, or through
the internet at [email protected].
SUPPLEMENTARY INFORMATION: Currently,
the IRS is seeking comments concerning
the following information collection
tools, reporting, and record-keeping
requirements:
SUMMARY:

PO 00000

Frm 00129

Fmt 4703

Sfmt 4703

Title: Methods to Determine Taxable
Income in connection with a Cost
Sharing Arrangement—IRC section 482.
OMB Number: 1545–1364.
Treasury Decision Number: 9568.
Abstract: This document contains
final regulations regarding methods to
determine taxable income in connection
with a cost sharing arrangement under
section 482 of the Internal Revenue
Code (Code). The final regulations
address issues that have arisen in
administering the current cost sharing
regulations. The final regulations affect
domestic and foreign entities that enter
into cost sharing arrangements
described in the final regulations.
Current Actions: There are no changes
to the information collection.
Type of Review: Extension without
change of a currently approved
collection.
Affected Public: Business or other forprofit organizations.
Estimated Number of Respondents:
500.
Estimated Time per Response: 18
hours, 42 minutes.
Estimated Total Annual Burden
Hours: 9,350.
The following paragraph applies to all
the collections of information covered
by this notice:
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB control number.
Books or records relating to a collection
of information must be retained as long
as their contents may become material
in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential,
as required by 26 U.S.C. 6103.
Request for Comments: Comments
submitted in response to this notice will
be summarized and/or included in the
request for OMB approval. All
comments will become a matter of
public record. Comments are invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and (e) estimates of capital
or start-up costs and costs of operation,
maintenance, and purchase of services
to provide information.

E:\FR\FM\23NON1.SGM

23NON1