30-Day Federal Register Notice

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Federal Register / Vol. 86, No. 98 / Monday, May 24, 2021 / Notices
Friedman, Senior Policy Analyst,
Division of Depositor and Consumer
Protection, 202–898–7168, dfriedman@
fdic.gov; or Chris Ledoux, Corporate
Expert, Legal Division, 202–898–3535,
[email protected].
Bureau: Albert D. Chang, Senior
Counsel, Office of Innovation, (202)
450–7299; Patrice Alexander Ficklin,
Fair Lending Director, Office of Fair
Lending & Equal Opportunity, (202)
435–7205; and Kathryn Lazarev, Senior
Counsel, Office of Regulations, (202)
435–7700. If you require this document
in an alternative electronic format,
please contact CFPB_Accessibility@
cfpb.gov.
NCUA: Timothy Segerson, Deputy
Director, Office of Examination &
Insurance, 703–518–6300; Chrisanthy
Loizos, Senior Trial Attorney, Office of
General Counsel, 703–518–6540; Joe
Goldberg, Director, Division of
Consumer Compliance Policy and
Outreach, 703–518–1142.
SUPPLEMENTARY INFORMATION: On March
31, 2021, the agencies published in the
Federal Register 2 a document inviting
comments on financial institutions’ use
of artificial intelligence (AI), including
machine learning (ML). The request for
information (RFI) was issued to obtain
respondents’ views on financial
institutions’ use of AI in their provision
of services to customers and for other
business or operational purposes;
appropriate governance, risk
management, and controls over AI; and
any challenges in developing, adopting,
and managing AI. The RFI also solicited
respondents’ views on the use of AI in
financial services to assist in
determining whether any clarifications
from the agencies would be helpful for
financial institutions’ use of AI in a safe
and sound manner and in compliance
with applicable laws and regulations,
including those related to consumer
protection. The document stated that
the comment period would close on
June 1, 2021. The agencies have
received requests to extend the
comment period. An extension of the
comment period will provide additional
opportunity for the public to analyze the
RFI and prepare comments to address
the questions posed by the agencies.
Therefore, the agencies are extending
the end of the comment period for the
RFI from June 1, 2021 until July 1, 2021.
Bureau: The Acting Director of the
Bureau, David Uejio, having reviewed
and approved this document, is
delegating the authority to electronically
2 Request for Information and Comment on
Financial Institutions’ Use of Artificial Intelligence,
including Machine Learning. 86 FR 16837–38
(March 31, 2021).

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sign this document to Grace Feola, a
Bureau Federal Register Liaison, for
purposes of publication in the Federal
Register.
Michael J. Hsu,
Acting Comptroller of the Currency.
By order of the Board of Governors of the
Federal Reserve System.
Ann Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on May 13, 2021.
James P. Sheesley,
Assistant Executive Secretary.
Grace Feola,
Federal Register Liaison, Bureau of Consumer
Financial Protection.
Melane Conyers-Ausbrooks,
Secretary of the Board, National Credit Union
Administration.
[FR Doc. 2021–10861 Filed 5–21–21; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 4810–AM–P;
6714–01–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
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 December 18, 2020, and
February 5, 2021, the agencies, under
the auspices of the Federal Financial
Institutions Examination Council
(FFIEC), requested public comment for
60 days on proposals to revise and
extend the Consolidated Reports of
Condition and Income (Call Reports)
(FFIEC 031, FFIEC 041, and FFIEC 051),
the Report of Assets and Liabilities of
U.S. Branches and Agencies of Foreign
Banks (FFIEC 002), and the Report of

SUMMARY:

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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 (FFIEC 002S), all of
which are currently approved
collections of information. After
considering the comments received on
the notices, the agencies are proceeding
with the proposed revisions to the
reporting forms and instructions related
to the FDIC’s amendments to the deposit
insurance assessment system, effective
with the June 30, 2021, report date, and
the exclusion of sweep deposits and
certain other deposits from reporting as
brokered deposits, effective with the
September 30, 2021, report date. 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 June 23, 2021.
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
Deposit Insurance Assessment-Related
and Deposit-Related 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.
Comments should also be sent to:
OCC: You may submit comments,
which should refer to ‘‘Call Report
Deposit Insurance Assessment-Related
and Deposit-Related 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’’ 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

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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.’’ 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
Deposit Insurance Assessment-Related
and Deposit-Related Revisions,’’ by any
of the following methods:
• Agency Website: http://www.federal
reserve.gov. Follow the instructions for
submitting comments at: http://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm.
• Email: regs.comments@
federalreserve.gov. Include ‘‘Call Report
Deposit Insurance Assessment-Related
and Deposit-Related 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
Deposit Insurance Assessment-Related
and Deposit-Related Revisions,’’ by any
of the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal/.

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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 Deposit Insurance
Assessment-Related and DepositRelated 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.
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 and instructions for the
Call Reports 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.
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. Report Summary
A. Call Report
B. FFIEC 002 and 002S
II. Current Actions
A. Background
B. Comments Received on the Proposed
Call Report Revisions
C. Revised Memorandum Item for NonBrokered Sweep Deposits
III. Timing
IV. Request for Comment

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I. Report Summary
A. Call Report
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.
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:
1,090 national banks and federal savings
associations.
Estimated Average Burden per
Response: 42.10 burden hours per
quarter to file.
Estimated Total Annual Burden:
183,556 burden hours to file.
Board
OMB Control No.: 7100–0036.
Estimated Number of Respondents:
728 state member banks.
Estimated Average Burden per
Response: 45.62 burden hours per
quarter to file.
Estimated Total Annual Burden:
132,845 burden hours to file.
FDIC
OMB Control No.: 3064–0052.
Estimated Number of Respondents:
3,209 insured state nonmember banks
and state savings associations.
Estimated Average Burden per
Response: 40.13 burden hours per
quarter to file.
Estimated Total Annual Burden:
515,109 burden hours to file.
The estimated average burden hours
collectively reflect the estimates for the
FFIEC 031, the FFIEC 041, and the
FFIEC 051 reports for each agency.
When the estimates are calculated by
type of report across the agencies, the
estimated average burden hours per
quarter are 86.49 (FFIEC 031), 55.53
(FFIEC 041), and 35.38 (FFIEC 051). The
deposit insurance assessment-related
change to the FFIEC 031 and FFIEC 041

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Call Report forms and instructions in
this notice would not have a material
impact on the existing burden estimates.
The deposit insurance assessmentrelated change in this notice does not
propose any changes to the FFIEC 051.
The deposit-related revisions to the Call
Report forms and instructions in this
notice result in an increase in estimated
average burden hours per quarter by
type of report of 0.68 (FFIEC 031), 0.33
(FFIEC 041) and 0.11 (FFIEC 051). 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
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

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used to calculate institutions’ deposit
insurance assessments and national
banks’ and federal savings associations’
semiannual assessment fees.
B. FFIEC 002 and 002S
The Board proposes to extend for
three years, with revision, the FFIEC
002 and FFIEC 002S reports.
Report Titles: Report of Assets and
Liabilities of U.S. Branches and
Agencies of Foreign Banks; Report of
Assets and Liabilities of a Non-U.S.
Branch that is Managed or Controlled by
a U.S. Branch or Agency of a Foreign
(Non-U.S.) Bank.
Form Numbers: FFIEC 002; FFIEC
002S.
OMB Control Number: 7100–0032.
Frequency of Response: Quarterly.
Affected Public: Business or other 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:
FFIEC 002—20,791 hours; FFIEC 002S—
912 hours.
Type of Review: Extension and
revision of currently approved
collections.
The proposed deposit-related
revisions to the FFIEC 002 form and
instructions in this notice are applicable
to only a limited number of insured U.S.
branches and agencies of foreign
banking organizations and would not
have a material impact on the existing
burden estimates.
Legal Basis and Need for Collection
On a quarterly basis, all U.S. branches
and agencies of foreign banks are
required to file the FFIEC 002, which is
a detailed report of condition with a
variety of supporting schedules. This
information is used to fulfill the
supervisory and regulatory requirements
of the International Banking Act of
1978. The data also are used to augment
the bank credit, loan, and deposit
information needed for monetary policy
and other public policy purposes. In
addition, FFIEC 002 data are used to
calculate the risk-based assessments for
FDIC-insured U.S. branches of foreign
banks.
The FFIEC 002S is a supplement to
the FFIEC 002 that collects information
on assets and liabilities of any non-U.S.

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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. Background
On December 18, 2020, the agencies
proposed revisions to the Call Reports 1
(FFIEC 031 and FFIEC 041 only) to
implement the FDIC’s proposed
amendments to the deposit insurance
assessment system applicable to all
large and highly complex IDIs published
on December 7, 2020.2 The amendments
to the rule were subsequently finalized
without change on February 16, 2021,
and published in the Federal Register
1 85 FR 82580 (Dec. 18, 2020) (December 2020
notice).
2 85 FR 78794 (Dec. 7, 2020). For deposit
insurance assessment purposes, a large bank is
generally defined as an institution with $10 billion
or more in total assets, a small bank is generally
defined as an institution with less than $10 billion
in total assets, and a highly complex bank is
generally defined as an institution that has $50
billion or more in total assets and is controlled by
a parent holding company that has $500 billion or
more in total assets, or is a processing bank or trust
company. See 12 CFR 327.8(e), (f), and (g).

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on February 25, 2021.3 The amendments
to the assessment system remove the
double counting of the applicable
portion of the CECL transitional
amounts that is added to retained
earnings for regulatory capital purposes
and attributable to the allowance for
credit losses on loans and leases held
for investment in certain financial
measures that are calculated using the
sum of Tier 1 capital and reserves, and
also from the loss severity measure.
These measures are used to determine
assessment rates for large and highly
complex institutions. To implement
these amendments, the agencies
proposed one new, temporary
memorandum item and corresponding
changes to the FFIEC 031 and FFIEC 041
versions of the Call Report forms and
instructions. The agencies would
remove the proposed new Call Report
item when all large and highly complex
institutions are no longer using a CECL
transition. The comment period for the
December 2020 notice ended on
February 16, 2021.
On February 5, 2021, the agencies
proposed revisions to the reporting
forms and instructions for the Call
Reports and FFIEC 002 that would allow
(1) evaluation of the funding stability of
sweep deposits over time to determine
their appropriate treatment under
liquidity regulations,4 and (2)
assessment of risk factors associated
with sweep deposits that may no longer
be reported as brokered deposits.5
Accordingly, the agencies proposed
adding five data items to Schedule
RC–E, Deposit Liabilities, on all three
versions of the Call Report (FFIEC 031,
FFIEC 041, and FFIEC 051) applicable to
all institutions and to Schedule O of the
FFIEC 002 applicable to insured
agencies and branches of foreign
banking organizations. In addition, four
data items would be added to Schedule
RC–E, Deposit Liabilities, on the FFIEC
031 Call Report only and would be
completed quarterly only by institutions
with $100 billion or more in total assets.
The agencies also proposed revising the
Call Report instructions addressing
brokered deposits to align them with the
brokered deposits final rule. The
changes to the Call Reports were
proposed to take effect as of the June 30,
2021, report date.
The comment period for the February
2021 notice ended on April 6, 2021.
3 See https://www.fdic.gov/news/financialinstitution-letters/2021/fil21007.html and 86 FR
11391 (Feb. 25, 2021).
4 See 12 CFR part 50 (OCC), 12 CFR part 249
(Board) and 12 CFR part 329 (FDIC).
5 See 12 CFR 337.6 and 86 FR 8480 (Feb. 5, 2021)
(February 2021 notice).

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B. Comments Received on the Proposed
Call Report Revisions
1. Deposit Insurance AssessmentRelated Revision
The agencies received one comment
on the December 2020 notice to revise
the Call Report to implement the FDIC’s
proposed amendments to the deposit
insurance assessment system. The
commenter discussed another potential
double-counting in the computation of
the leverage ratio.
This comment is not specifically
applicable to the deposit insurance
assessment regulations or the related
revision to the Call Report addressed in
the December 2020 notice. The
calculation of the leverage ratio in the
Call Report is aligned with the
calculation pursuant to the agencies’
regulatory capital rules, which is
outside the scope of the proposed
changes.
To improve the clarity of the reporting
changes for deposit insurance
assessments, the agencies plan to add
examples to the instructions for
Schedule RC–O, Memorandum item 5,
to show what an institution that has
elected the three-year or the five-year
2020 CECL transition provision would
report in the new Memorandum item.
These examples would be added at the
end of the instructions for the Schedule
RC–O, Other Data for Deposit Insurance
Assessments.
After considering the comments on
the deposit insurance assessmentrelated revision, the agencies are
proceeding with the changes to the Call
Reports as proposed with the added
examples to show what an institution
would report in the new Memorandum
item in Schedule RC–O (FFIEC 031 and
FFIEC 041 only).
2. Deposit-Related Revisions
The agencies received one comment
letter from three trade associations on
the February 2021 proposal to revise the
Call Report forms and instructions
related to sweep deposits. The
commenters recommended that
institutions that report sweep deposits
on the Board’s Complex Institution
Liquidity Monitoring Report (FR 2052a)
should not be required to provide
comparable data on the Call Report.
Additionally, the commenters requested
that the proposed Call Report
memorandum items receive confidential
treatment consistent with the treatment
of comparable data items provided on
the FR 2052a. The commenters further
requested that the proposed Call Report
memorandum items be delayed until the
March 2022 report date. The
commenters requested that the agencies

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confirm whether institutions are
permitted to incorporate the new
brokered deposits regime for purposes
of reporting beginning with the June 30,
2021 Call Report, even if such
institutions are still in the primary
purpose exception application process.
Finally, the commenters requested
clarification with respect to the
definition of ‘‘not fully insured’’ as it
would apply to the proposed Call
Report memorandum items.
The FR 2052a is required to be filed
on a consolidated basis by (1) certain
top-tier bank holding companies and
top-tier covered savings and loan
holding companies that in each case
have consolidated assets of $100 billion
or more, and (2) certain foreign banking
organizations with combined U.S. assets
of $100 billion or more. The largest and
most complex FR 2052a filers
additionally submit data in respect to a
limited number of subsidiaries,
including large depository institution
subsidiaries, and U.S. branches. The FR
2052a report is collected on a daily or
monthly basis, depending on the size of
the reporting organization.6 In contrast,
the proposed Call Report data collection
would reflect deposit data from all
depository institutions regardless of
size. The Call Report data also would be
collected on a quarterly or semiannual
basis. Due to the differences in scope
and frequency of the reporting, the
agencies do not believe that there is
material duplication between the data
requested.
Regarding the comment on
confidential treatment, the Board notes
that the information collected in the FR
2052a is collected as part of the
agencies’ supervisory framework and is
provided confidential treatment for
several reasons. The FR 2052a collection
is reported on a frequent basis and
includes a wide range of financial
exposures providing detailed
information on the liquidity profile of
reporting firms (e.g., financing of
securities positions and prime brokerage
activities). Additionally, FR 2052a data
is used as a supervisory tool to monitor
individual organizations’ overall
liquidity profile, including during
periods of stress, and may reflect risks
and exposures between a respondent’s
6 In general, banking organizations subject to the
full liquidity coverage ratio requirements of the
agencies’ Liquidity Coverage Ratio (LCR) rule,
including all Category I and II banking
organizations and certain Category III banking
organizations (as such categories are defined in the
rule), must submit the FR 2052a data on a daily
basis while other banking organizations with total
consolidated assets greater than $100 billion,
including certain Category III and all Category IV
banking organizations, must submit FR 2052a data
on a monthly basis.

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Federal Register / Vol. 86, No. 98 / Monday, May 24, 2021 / Notices
material legal entities. As a result,
public availability of an individual
banking organization’s detailed and
frequent FR 2052a data could result in
disclosure of proprietary business
information.
By comparison, the proposed Call
Report data items would be reported on
a less frequent basis (quarterly or
semiannually) by all individual
depository institutions and do not
include the same extensive scope of
items reported under the FR 2052a
collection. The agencies therefore do not
believe public disclosure of the
proposed Call Report data items would
result in disclosure of proprietary
business information which would
harm a bank’s competitive position. For
example, because the proposed Call
Report data items would be reported on
a quarterly or semiannual basis and
constitute limited information about a
bank’s liquidity risk or structural
funding, it would not be possible for the
public to determine an individual
bank’s Liquidity Coverage Ratio (LCR)
or NSFR at any point within a quarter.7
Therefore, the agencies are not
proposing to adopt confidential
treatment for the proposed Call Report
memorandum items.
With regard to the implementation
date of the revisions to the Call Reports
and FFIEC 002, the agencies
acknowledge that institutions may need
additional time to make system changes
to capture the relevant data.
Accordingly, in response to comments,
the agencies are proposing to delay the
implementation date for the new
memorandum items in the Call Report
and FFIEC 002 forms and instructions
until the September 30, 2021, reporting
date rather than for June 30, 2021, as
originally proposed. As the collection in
the FFIEC 051 occurs semiannually,
FFIEC 051 filers will report the new
data items for the first time for the
December 31, 2021, reporting date. This
delay should provide institutions with
sufficient additional time to put in place
systems to begin reporting on the
proposed memorandum items.
The agencies will provide
clarifications in the Call Report Glossary
and Schedule RC–E, Deposit Liabilities
instructions in response to comments
related to reporting deposits as brokered
in instances where a primary purpose
application is pending or where an
institution wishes to rely upon a
previous staff advisory opinion or
interpretation through December 31,
2021.
7 Holding companies subject to the agencies’ LCR
and NSFR rules must publicly disclose their
consolidated LCR and NSFR on a quarterly basis.

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With respect to pending applications
for a primary purpose exception, an IDI
that receives deposits from a third party
that is a ‘‘deposit broker’’ where an
application for a primary purpose
exception is pending, would report such
deposits as brokered deposits if and
until the FDIC approves such
application. This is because the deposits
being placed by or through a third party
that is a deposit broker are brokered
deposits unless the third party meets an
exception to the definition.
In response to the commenters’
request, the agencies are clarifying the
definition of ‘‘not fully insured’’ as it
would apply to the deposit-related Call
Report revisions. As described in the
agencies’ February 2021 notice, the
proposal aligns with the final NSFR rule
and revised Call Report Glossary
definition of ‘‘Sweep Deposits.’’ Under
the agencies’ LCR and NSFR rules, a
sweep deposit is considered ‘‘fully
insured’’ if the entire amount of the
sweep deposit is covered by deposit
insurance provided by the FDIC under
the Federal Deposit Insurance Act.8 A
sweep deposit is ‘‘not fully insured’’ if
less than the entire balance of the sweep
deposit is covered by FDIC insurance.
The brokered deposits final rule
included clarifications to the definition
of ‘‘deposit broker’’ in Section 29(g) of
the Federal Deposit Insurance Act and
Section 337.6(a)(5) of the FDIC’s
regulations. The meaning of the term
‘‘brokered deposit’’ depends on the
meaning of the term ‘‘deposit broker.’’
The term ‘‘Brokered Deposits’’ is
defined in the Call Report Glossary, and
the term ‘‘deposit broker’’ is also
addressed in instructions to Schedule
RC–E, Deposit Liabilities. Consistent
with the agencies’ proposal to revise the
Call Report instructions in the February
2021 notice, the agencies plan to update
the Glossary and Schedule RC–E
instructions to align with the
clarifications to the definition of
‘‘deposit broker’’ in the brokered
deposits final rule.
After considering the comments, the
agencies are clarifying the proposed
instructions as described above and
proceeding with the clarifications in the
Call Report Glossary and Schedule RC–
E instructions related to the definition
of ‘‘deposit broker.’’
The agencies are also making several
technical corrections to proposed
revisions in the February 2021 notice. In
that notice, the agencies proposed to
revise the Call Report instructions to
add the LCR rule’s definition 9 of ‘‘retail
customer or counterparty,’’ but
8 12
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FR 61439, 61527 (Oct. 10, 2014).

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inadvertently excluded references to
living or testamentary trusts as part of
that definition. The agencies will correct
the Call Report instructions to include
the complete definition of retail
customer or counterparty from the
agencies’ LCR rule.
In the February 2021 notice, the
agencies stated that the Call Report
instructions would add the LCR rule’s
definition of ‘‘wholesale customer or
counterparty.’’ Because there are no
proposed line items that require the
definition of wholesale customer or
counterparty, the agencies do not plan
to make this change in the Call Report
instructions.
C. Revised Memorandum Item for NonBrokered Sweep Deposits
As part of the February 2021 notice,
the agencies proposed including the
following data item that would be
collected quarterly on the FFIEC 031
and FFIEC 041 Call Reports and
semiannually on the FFIEC 051 Call
Report:
Æ Memorandum item 1.i for total
sweep deposits that are not brokered
due to a primary purpose exception,
which corresponds to the 25 percent test
exception above.
As provided in the February 2021
notice, the agencies intend to collect
this data to monitor sweep deposits that
are not brokered due to the primary
purpose exception to determine the
supervisory and deposit insurance
assessment implications of these
deposits, if any.
However, the agencies note that
certain sweep deposits placed by third
parties with IDIs may not be classified
as brokered when the third party has an
exclusive deposit placement
arrangement with only one IDI.10 For
example, a broker dealer that is
sweeping excess customer balances to
only one IDI will not meet the deposit
broker definition and therefore would
not need to rely upon a primary purpose
exception. Only reflecting exclusions
related to the primary purpose
exception could significantly limit the
agencies’ ability to monitor nonbrokered sweep deposits. Therefore, to
ensure a more complete collection of
sweep deposits that are excluded from
being reported as brokered, the agencies
are proposing the following memo item
in place of the proposed item above
from the February 2021 notice:
Æ Memorandum item 1.i for total
sweep deposits that are not brokered
deposits.
Updates to the Glossary and
instructions will provide clarifications
10 12

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for determining whether certain third
parties that place sweep deposits at IDIs
are deposit brokers and the exceptions
to the definition of deposit broker.

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IV. Timing
As stated in the December 2020
notice, beginning with the June 30,
2021, Call Report, Schedule RC–O,
Memorandum item 5, ‘‘Applicable
portion of the CECL transitional amount
or modified CECL transitional amount
that has been added to retained earnings
for regulatory capital purposes as of the
report date and is attributable to loans
and leases held for investment,’’ would
be completed only by large and highly
complex institutions that have adopted
ASU 2016–13 and reported having a
CECL transition election in effect as of
the quarter-end report date.
The new deposit-related items would
be effective starting with the September
30, 2021, Call Report (FFIEC 031 and
FFIEC 041) and FFIEC 002, and with the
December 31, 2021, Call Report (FFIEC
051). These items are Schedule RC–E,
Memorandum items 1.h.(1) through
1.h.(4) and 1.i. Thereafter, these data
items would be collected quarterly on
the FFIEC 031 and FFIEC 041 Call
Reports and semiannually on the FFIEC
051 Call Report. Beginning as of the
same report date, all institutions filing

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the FFIEC 031 Call Report with $100
billion or more in total assets would
report deposit data in four additional
items in Schedule RC–E, Memorandum
items 1.h.(1)(a), 1.h.(2)(a), 1.h.(3)(a), and
1.h.(4)(a).
The agencies note that the brokered
deposits final rule became effective
April 1, 2021, with a mandatory
compliance date of January 1, 2022.
Therefore, for the September 30, 2021,
Call Report dates, institutions may rely
on either existing staff advisory
opinions and interpretations or the new
provisions in the brokered deposits final
rule when assessing whether a sweep
deposit is brokered for Call Report
purposes. The agencies will make
available on the FFIEC website redline
changes to the Glossary instructions for
brokered deposits.
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

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information collections as they are
proposed to be revised, including the
validity of the methodology and
assumptions used;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
information collections on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Comments submitted in response to
this joint notice will be shared among
the agencies.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the
Comptroller of the Currency.
Board of Governors of the Federal Reserve
System.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on May 17, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021–10853 Filed 5–21–21; 8:45 am]
BILLING CODE 4810–33–P, 6210–01–P, 6714–01–P

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