60-day Federal Register Notice

48932

Federal Register / Vol. 78, No. 155 / Monday, August 12, 2013 / Notices

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exemption will be effective on
September 11, 2013, unless stayed
pending reconsideration. Petitions to
stay that do not involve environmental
issues,1 formal expressions of intent to
file an OFA under 49 CFR
1152.27(c)(2),2 and trail use/rail banking
requests under 49 CFR 1152.29 must be
filed by August 22, 2013. Petitions to
reopen or requests for public use
conditions under 49 CFR 1152.28 must
be filed by September 3, 2013, with the
Surface Transportation Board, 395 E
Street SW., Washington, DC 20423–
0001.
A copy of any petition filed with the
Board should be sent to NSR’s
representative: Robert A. Wimbish,
Baker & Miller PLLC, 2401 Pennsylvania
Ave. NW., Suite 300, Washington, DC
20037.
If the verified notice contains false or
misleading information, the exemption
is void ab initio.
NSR has filed a combined
environmental and historic report that
addresses the effects, if any, of the
abandonment on the environment and
historic resources. OEA will issue an
environmental assessment (EA) by
August 16, 2013. Interested persons may
obtain a copy of the EA by writing to
OEA (Room 1100, Surface
Transportation Board, Washington, DC
20423–0001) or by calling OEA at (202)
245–0305. Assistance for the hearing
impaired is available through the
Federal Information Relay Service at
(800) 877–8339. Comments on
environmental and historic preservation
matters must be filed within 15 days
after the EA becomes available to the
public.
Environmental, historic preservation,
public use, or trail use/rail banking
conditions will be imposed, where
appropriate, in a subsequent decision.
Pursuant to the provisions of 49 CFR
1152.29(e)(2), NSR shall file a notice of
consummation with the Board to signify
that it has exercised the authority
granted and fully abandoned the Line. If
consummation has not been effected by
NSR’s filing of a notice of
consummation by August 12, 2014, and
there are no legal or regulatory barriers
1 The Board will grant a stay if an informed
decision on environmental issues (whether raised
by a party or by the Board’s Office of Environmental
Analysis (OEA) in its independent investigation)
cannot be made before the exemption’s effective
date. See Exemption of Out-of-Serv. Rail Lines, 5
I.C.C. 2d 377 (1989). Any request for a stay should
be filed as soon as possible so that the Board may
take appropriate action before the exemption’s
effective date.
2 Each OFA must be accompanied by the filing
fee, which is currently set at $1,600. See 49 CFR
1002.2(f)(25).

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to consummation, the authority to
abandon will automatically expire.
Board decisions and notices are
available on our Web site at
‘‘WWW.STB.DOT.GOV.’’
Decided: August 7, 2013.
By the Board, Rachel D. Campbell,
Director, Office of Proceedings.
Derrick A. Gardner,
Clearance Clerk.
[FR Doc. 2013–19433 Filed 8–9–13; 8:45 am]
BILLING CODE 4915–01–P

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

In accordance with the
requirements of the Paperwork
Reduction Act (PRA) of 1995 (44 U.S.C.
chapter 35), the OCC, the Board, and the
FDIC (the agencies) may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number. The agencies,
under the auspices of the Federal
Financial Institutions Examination
Council (FFIEC), have approved the
publication for public comment of
proposed revisions to regulatory capital
components and ratios portion of
Schedule RC–R, Regulatory Capital, in
the Consolidated Reports of Condition
and Income (Call Report or FFIEC 031
and FFIEC 041) and to the Risk-Based
Capital Reporting for Institutions
Subject to the Advanced Capital
Adequacy Framework (FFIEC 101). The
proposed revisions to the Call Report
and the FFIEC 101 are consistent with
the revised regulatory capital rules
approved by the agencies during July
2013 (revised regulatory capital rules).1

SUMMARY:

1 See http://www.occ.treas.gov/news-issuances/
news-releases/2013/nr-occ-2013–110.html, July 9,
2013 (OCC); http://www.federalreserve.gov/
newsevents/press/bcreg/20130702a.htm, July 2,

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Institutions subject to the advanced
approaches risk-based capital rules
(advanced approaches banking
organizations) that are not savings and
loan holding companies would begin
reporting on the proposed revised FFIEC
101 and, if applicable, proposed revised
Call Report Schedule RC–R effective
March 31, 2014. Advanced approaches
banking organizations that are savings
and loan holding companies and that
are subject to the revised regulatory
capital rules would begin reporting on
the proposed revised FFIEC 101
effective March 31, 2015. All other
institutions that are required to file the
Call Report would begin reporting on
proposed revised Call Report Schedule
RC–R effective March 31, 2015.
At the end of the comment period, the
comments and recommendations
received will be analyzed to determine
the extent to which the FFIEC and the
agencies should modify the proposed
reporting revisions prior to giving final
approval. The agencies will then submit
the proposed reporting revisions to
OMB for review and approval.
In connection with the revised
regulatory capital rules, published
elsewhere in today’s Federal Register,
the Board proposes to make
corresponding revisions to the
Consolidated Financial Statements for
Holding Companies (FR Y–9C) and to
collect consolidated regulatory capital
data from savings and loan holding
companies with total consolidated
assets of less than $500 million that are
subject to the revised regulatory capital
rules on the Parent Company Only
Financial Statements for Holding
Companies (FR Y–9SP).
DATES: Comments must be submitted on
or before October 11, 2013.
ADDRESSES: Interested parties are
invited to submit written comments to
any or all of the agencies. All comments,
which should refer to the OMB control
number(s), will be shared among the
agencies.
OCC: Because paper mail in the
Washington, DC, area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by
email if possible. Comments may be
sent to: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, Attention:
1557–0081 and 1557–0239, 400 7th
Street SW., Suite 3E–218, Mail Stop
9W–11, Washington, DC 20219. In
addition, comments may be sent by fax
to (571) 465–4326 or by electronic mail
to regs.comments@occ.treas.gov. You
may personally inspect and photocopy
2013 (Board); and http://www.fdic.gov/news/news/
press/2013/pr13060.html, July 9, 2013 (FDIC).

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Federal Register / Vol. 78, No. 155 / Monday, August 12, 2013 / Notices
comments at the OCC, 400 7th Street
SW., Washington, DC 20219. For
security reasons, the OCC requires that
visitors make an appointment to inspect
comments. You may do so by calling
(202) 649–6700. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and to submit to security screening in
order to inspect and photocopy
comments.
All comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
Board: You may submit comments,
which should refer to ‘‘FFIEC 031,
FFIEC 041, and FFIEC 101,’’ by any of
the following methods:
• Agency Web site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at:
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email:
regs.comments@federalreserve.gov.
Include reporting form number in the
subject line of the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Robert DeV. Frierson,
Secretary, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
All public comments are available from
the Board’s Web site at
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper in Room MP–500 of the Board’s
Martin Building (20th and C Streets
NW.) between 9:00 a.m. and 5:00 p.m.
on weekdays.
FDIC: You may submit comments,
which should refer to ‘‘FFIEC 031,
FFIEC 041, and FFIEC 101,’’ by any of
the following methods:
• Agency Web site: http://
www.fdic.gov/regulations/laws/federal/
propose.html. Follow the instructions
for submitting comments on the FDIC
Web site.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: comments@FDIC.gov.
Include ‘‘FFIEC 031, FFIEC 041, and

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FFIEC 101’’ in the subject line of the
message.
• Mail: Gary A. Kuiper, Counsel,
Attn: Comments, Room NYA–5046,
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 a.m. and 5 p.m. Public
Inspection: All comments received will
be posted without change to http://
www.fdic.gov/regulations/laws/federal/
propose.html including any personal
information provided. Comments may
be inspected at the FDIC Public
Information Center, Room E–1002, 3501
Fairfax Drive, Arlington, VA 22226,
between 9 a.m. and 5 p.m. on business
days.
Additionally, commenters may send a
copy of their comments to the OMB
desk officer for the agencies by mail to
the Office of Information and Regulatory
Affairs, U.S. Office of Management and
Budget, New Executive Office Building,
Room 10235, 725 17th Street NW.,
Washington, DC 20503; by fax to (202)
395–6974; or by email to
oira_submission@omb.eop.gov.
For
further information about the proposed
revisions to regulatory reporting
requirements discussed in this notice,
please contact any of the agency
clearance officers whose names appear
below. In addition, copies of the
proposed revised Call Report Schedule
RC–R and FFIEC 101 forms and
instructions can be obtained at the
FFIEC’s Web site (http://www.ffiec.gov/
ffiec_report_forms.htm).
OCC: Mary H. Gottlieb and Johnny
Vilela, OCC Clearance Officers, (202)
649–5490, Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
Street SW., Washington, DC 20219.
Board: Cynthia Ayouch, Federal
Reserve Board Clearance Officer, (202)
452–3829, Office of the Chief Data
Officer, Board of Governors of the
Federal Reserve System, 20th and C
Streets NW., Washington, DC 20551.
Telecommunications Device for the Deaf
(TDD) users may call (202) 263–4869.
FDIC: Gary A. Kuiper, Counsel, (202)
898–3877, Legal Division, Federal
Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: The
agencies are proposing to revise,
without extension, the Call Report and
to revise, with extension, the FFIEC 101,
which are currently approved
FOR FURTHER INFORMATION CONTACT:

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collections of information for each
agency.
Report Title: Consolidated Reports of
Condition and Income (Call Report).
Form Number: Call Report: FFIEC 031
(for banks with domestic and foreign
offices) and FFIEC 041 (for banks with
domestic offices only).
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.
OCC:
OMB Number: 1557–0081.
Estimated Number of Respondents:
1,787 national banks and federal savings
associations.
Estimated Time per Response: 55.39
burden hours per quarter to file.
Estimated Total Annual Burden:
395,928 burden hours to file.
Board:
OMB Number: 7100–0036.
Estimated Number of Respondents:
843 state member banks.
Estimated Time per Response: 57.29
burden hours per quarter to file.
Estimated Total Annual Burden:
193,182 burden hours to file.
FDIC:
OMB Number: 3064–0052.
Estimated Number of Respondents:
4,369 insured state nonmember banks
and state savings associations.
Estimated Time per Response: 42.06
burden hours per quarter to file.
Estimated Total Annual Burden:
735,041 burden hours to file.
The estimated time per response for
the quarterly filings of the Call Report
is an average that varies by agency
because of differences in the
composition of the institutions under
each agency’s supervision (e.g., size
distribution of institutions, types of
activities in which they are engaged,
and existence of foreign offices). The
average reporting burden for the filing of
the Call Report as it is proposed to be
revised is estimated to range from 18 to
750 hours per quarter, depending on an
individual institution’s circumstances.
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 Number: 1557–0239.
Estimated Number of Respondents: 14
national banks and federal savings
associations.
Estimated Time per Response: 676
burden hours per quarter to file.
Estimated Total Annual Burden:
37,856 burden hours to file.

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Federal Register / Vol. 78, No. 155 / Monday, August 12, 2013 / Notices

Board:
OMB Number: 7100–0319.
Estimated Number of Respondents: 20
state member banks, bank holding
companies, and savings and loan
holding companies.
Estimated Time per Response: 676
burden hours per quarter to file.
Estimated Total Annual Burden:
54,080 burden hours to file.
FDIC:
OMB Number: 3064–0159.
Estimated Number of Respondents: 8
insured state nonmember banks and
state savings associations.
Estimated Time per Response: 676
burden hours per quarter to file.
Estimated Total Annual Burden:
21,632 burden hours to file.

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General Description of Reports
The Call Report information
collections are mandatory for the
following institutions: 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
(savings associations) (collectively, Call
Report filers). At present, except for
selected data items, Call Report
information collections are not given
confidential treatment.
The FFIEC 101 information
collections are mandatory for
institutions using the advanced
approaches risk-based capital rule
(advanced approaches banking
organizations): 12 U.S.C. 161 (national
banks), 12 U.S.C. 324 and 12 U.S.C.
1844(c) (state member banks and bank
holding companies, respectively), 12
U.S.C. 1467a(b) (savings and loan
holding companies), 12 U.S.C. 1817
(insured state nonmember commercial
and savings banks), and 12 U.S.C. 1464
(savings associations). Under the
agencies’ current practice, the FFIEC
101 information collections are given
confidential treatment (5 U.S.C.
552(b)(4)) for report dates until after the
reporting institution conducts a
satisfactory parallel run. For report
dates thereafter, Schedules A and B, as
well as line items 1 and 2 of Schedule
S, of the institution’s FFIEC 101 are no
longer given confidential treatment. The
agencies propose to make public the
information collected on the proposed
FFIEC 101 Schedule A, except for a few
advanced approaches-specific line
items, for all advanced approaches
banking organizations, regardless of
their parallel run status, starting with
the report for the March 31, 2014, report
date, consistent with the
implementation timeline established by
the revised regulatory capital rules.

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Abstract
Call Report: Institutions submit Call
Report data to the agencies each quarter
for the agencies’ use in monitoring the
condition, performance, and risk profile
of individual institutions and the
industry as a whole. Call Report data
provide the most current statistical data
available for evaluating institutions’
corporate applications, identifying areas
of focus for on-site and off-site
examinations, and monetary and other
public policy purposes. The agencies
use Call Report data in evaluating
interstate merger and acquisition
applications to determine, as required
by law, whether the resulting institution
would control more than ten percent of
the total amount of deposits of insured
depository institutions in the United
States. Call Report data also are used to
calculate institutions’ deposit insurance
and Financing Corporation assessments
and national banks’ and federal savings
associations’ semiannual assessment
fees.
FFIEC 101: Each advanced
approaches banking organization is
required to file quarterly regulatory
capital data. The agencies use these data
to assess and monitor the levels and
components of each reporting entity’s
risk-based capital requirements and the
adequacy of the entity’s capital under
the Advanced Capital Adequacy
Framework; to evaluate the impact and
competitive implications of the
Advanced Capital Adequacy Framework
on individual reporting entities and on
an industry-wide basis; and to
supplement on-site examination
processes. The reporting schedules also
assist advanced approaches banking
organizations in understanding
expectations around the system
development necessary for
implementation and validation of the
Advanced Capital Adequacy
Framework. Submitted data that are
released publicly will also provide other
interested parties with information
about advanced approaches banking
organizations’ regulatory capital.
Current Actions
I. Overview of the Proposed Changes
A. Summary of Proposed Changes
Call Report
Call Report Schedule RC–R collects
regulatory data on tier 1, tier 2, and total
capital and regulatory capital ratios
(regulatory capital components and
ratios portion) and on risk-weighted
assets (risk-weighted assets portion).
The agencies are proposing at this time
to revise the reporting requirements for
the regulatory capital components and

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ratios portion of Call Report Schedule
RC–R, consistent with the revised
regulatory capital rules. Compared to
the current schedule, the proposed
regulatory capital components and
ratios portion of Schedule RC–R would
provide a more detailed breakdown of
the regulatory capital elements,
including deductions and adjustments,
consistent with the revised regulatory
capital rules. For report dates in 2014,
the regulatory capital components and
ratios portion of Schedule RC–R would
be designated Parts I.A and I.B. Call
Report filers that are not advanced
approaches institutions 2 would file Part
I.A, which would include existing data
items 1 through 33 of current Schedule
RC–R. Call Report filers that are subject
to advanced approaches and to the
revised regulatory capital rule effective
January 1, 2014, would file Part I.B,
which would include the reporting
revisions proposed herein consistent
with the revised regulatory capital rules.
In March 2015, Part I.A would be
removed and Part I.B would be
designated Part I; all Call Report filers
would then submit Part I. The proposed
changes to Call Report Schedule RC–R
are discussed in more detail in section
II below.
The agencies expect to publish at a
later date a request for comment on a
separate proposal to revise the riskweighted assets portion of Call Report
Schedule RC–R to incorporate the
standardized approach for calculating
risk-weighted assets under the revised
regulatory capital rules. The revisions to
the risk-weighted assets portion of
Schedule RC–R would take effect March
31, 2015. The agencies are proposing
changes to Schedule RC–R in two stages
to allow interested parties to better
understand the proposed revisions and
focus their comments on areas of
particular interest. Therefore, for report
dates in 2014, all Call Report filers
would continue to report risk-weighted
assets in the portion of Schedule RC–R
that contains existing data items 34
2 An advanced approaches institution as defined
in the agencies’ revised regulatory capital rules (i)
has consolidated total assets (excluding assets held
by an insurance underwriting subsidiary) on its
most recent year-end regulatory report equal to
$250 billion or more; (ii) has consolidated total onbalance sheet foreign exposure on its most recent
year-end regulatory report equal to $10 billion or
more (excluding exposures held by an insurance
underwriting subsidiary); (iii) is a subsidiary of a
depository institution that uses the advanced
approaches pursuant to subpart E of 12 CFR part 3
(OCC), 12 CFR part 217 (Board), or 12 CFR part 325
(FDIC) to calculate its total risk-weighted assets; (iv)
is a subsidiary of a bank holding company or
savings and loan holding company that uses the
advanced approaches pursuant to 12 CFR part 217
to calculate its total risk-weighted assets; or (v)
elects to use the advanced approaches to calculate
its total risk-weighted assets.

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Federal Register / Vol. 78, No. 155 / Monday, August 12, 2013 / Notices
through 62 and Memorandum items 1
and 2 of current Schedule RC–R, but
this portion of the schedule would be
designated Part II and the data items
would be renumbered beginning with
item 1.

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FFIEC 101
The proposed revised FFIEC 101
Schedule A for advanced approaches
banking organizations incorporates the
Basel III common disclosure template
that was adopted by the Basel
Committee on Banking Supervision in
June 2012 (Basel III common disclosure
template).3 The proposed revised
Schedule A incorporates the Basel III
capital disclosure template in its
entirety, with some minor changes to
the titles of the line items, consistent
with the revised regulatory capital rules
and accounting terminology of U.S.
generally accepted accounting
principles (GAAP). Line items that are
not applicable to U.S. banking
organizations are shaded out and
marked as not applicable (for example,
prudential valuation adjustments in line
item 7 and additional tier 1 capital
instruments classified as equity or
liabilities under GAAP in line items 31
and 32). The agencies believe that
incorporating the complete Basel III
common disclosure template into
Schedule A is essential to ensure
transparency and comparability of
reporting of regulatory capital elements
among internationally active
institutions. The proposed revised
Schedule A also includes additional
line items, such as the supplementary
leverage ratio, to collect data on the new
requirements established by the revised
regulatory capital rules.
To ensure transparency of reporting
regulatory capital by internationally
active institutions, the agencies propose
to make public the information
collected on the proposed revised
Schedule A, except for a few specific
line items, starting with the March 31,
2014, report date. The agencies propose
to continue granting confidential
treatment to certain items that are
dependent on the implementation of the
advanced approaches systems while an
advanced approaches banking
organization is in its parallel run period.
The agencies believe that according
confidential treatment to such line items
is important to ensure that the
organization conducts a satisfactory
parallel run and reports this data
publicly only after its primary federal
3 See Basel Committee on Banking Supervision,
Composition of capital disclosure requirements;
Annex 1; available at http://www.bis.org/publ/
bcbs221.pdf.

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supervisor approves its internal systems
to apply the revised advanced
approaches rules.
The agencies also propose to revise
the risk-weighted assets schedules of the
FFIEC 101 (Schedules B, C, D, H, I, J, P,
Q, and R) consistent with the revised
regulatory capital rules at this time to
facilitate the timely implementation of
the revised advanced approaches rules
in 2014.
B. Timing of Implementation of the
Proposed Reporting Requirements
Call Report Filers
Call Report filers that are not subject
to the advanced approaches rules would
continue to report their regulatory
capital data and regulatory capital ratios
using the current template of Schedule
RC–R, which would be designated Part
I.A, during the reporting periods in
2014.4 These institutions would begin
using proposed Schedule RC–R, Part I.B,
to report their regulatory capital data
and regulatory capital ratios effective
March 31, 2015, at which time Part I.B
would be relabeled Part I and Part I.A
would be eliminated.
Advanced Approaches Banking
Organizations
Reporting regulatory capital: An
advanced approaches banking
organization that is not a savings and
loan holding company would use
proposed revised FFIEC 101 Schedule A
and proposed Call Report Schedule RC–
R, Part I.B, if applicable, to report its
regulatory capital consistent with the
revised regulatory capital rules, effective
March 31, 2014.5 An advanced
approaches banking organization that is
a savings and loan holding company
(SLHC), except top-tier SLHCs that are
substantially engaged in insurance and
commercial activities, would file the
FFIEC 101 effective March 31, 2015,
4 For report dates in 2014, the regulatory capital
components and ratios portion of Schedule RC–R
would be presented as two parts. Part 1.A would
be identical to the current regulatory capital
components and ratios portion of Schedule RC–R
and it would be used by Call Report filers that are
not subject to the advanced approaches rules. Part
I.B would be the proposed revised regulatory
capital components and ratios portion of Schedule
RC–R and it would be used by Call Report filers that
are subject to the advanced approaches rules.
Starting on the March 31, 2015, report date, Part I.A
would be eliminated and the proposed Part I.B of
Schedule RC–R would be relabeled Part I, would be
the only template for reporting regulatory capital
data and regulatory capital ratios, and would be
used by all Call Report filers.
5 Advanced approaches banking organizations
that file the FR Y–9C would report their regulatory
capital on proposed revised FR Y–9C Schedule HC–
R, as described in the Federal Register notice
published by the Board.

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consistent with the revised regulatory
capital rules.6
Reporting risk-weighted assets and
regulatory capital ratios: An advanced
approaches banking organization that is
in a parallel run period would apply the
generally applicable risk-based capital
rules for report dates in 2014 7 and the
standardized approach for report dates
beginning in 2015 to report its riskweighted assets and capital ratios on
proposed revised FFIEC 101 Schedule A
(line items 60 through 63) and on
proposed Call Report Schedule RC–R,
Part I.B (in 2014, which would be
designated Part I in 2015), if applicable
(line items 40 through 43, Column A).
In addition, such an institution would
apply the revised advanced approaches
rules to report its risk-weighted assets
and risk-based capital ratios on
proposed revised FFIEC 101 Schedule A
(line items 87 through 90).
Beginning in 2014, an advanced
approaches banking organization that
conducts a satisfactory parallel run
would report its advanced approaches
risk-weighted assets and risk-based
capital ratios on proposed revised FFIEC
101 Schedule A (line items 60 through
63) and on proposed revised Call Report
Schedule RC–R, Part I.B, if applicable
(line item 40.b and line items 41
through 43, Column B).
Supplementary leverage ratio and
capital buffer: All advanced approaches
banking organizations, regardless of
their parallel run status, would report
their supplementary leverage ratio
effective March 31, 2015, on proposed
revised FFIEC 101 Schedule A (line
item 98) and on proposed revised Call
Report Schedule RC–R, Part I (as
relabeled in 2015), if applicable (line
item 44). All banking organizations
would report the applicable capital
buffer effective March 31, 2016, on
proposed revised FFIEC 101 Schedule A
(line items 64 through 68) and on
proposed Call Report Schedule RC–R,
Part I (as relabeled in 2015), if
applicable (line items 45 through 47).
Initial Reporting
For the March 31, 2014, and March
31, 2015, report dates, as applicable,
institutions may provide reasonable
estimates for any new or revised Call
Report and FFIEC 101 items initially
required to be reported as of that date
6 The revised regulatory capital rules apply to
top-tier SLHCs that are not substantially engaged in
insurance or commercial activities (covered SLHCs)
as defined in the rules.
7 The agencies’ general risk-based capital rules are
at 12 CFR part 3, appendix A, and 12 CFR part 167
(OCC); 12 CFR parts 208 and 225, appendix A
(Board); and 12 CFR part 325, appendix A, and 12
CFR part 390, subpart Z (FDIC).

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for which the requested information is
not readily available. The specific
wording of the captions for the new or
revised Call Report and FFIEC 101 data
items discussed in this proposal and the
numbering of these data items should be
regarded as preliminary.
II. Discussion of Proposed Call Report
Schedule RC–R, Part I.B
This section describes the proposed
changes to Call Report Schedule RC–R
to implement the reporting of regulatory
capital information and ratios consistent
with the revised regulatory capital rules.
As previously discussed, effective
March 31, 2014: (1) the existing
regulatory capital ratios portion of
Schedule RC–R would be designated
Part I.A and would be completed by
institutions that are not advanced
approaches institutions during the 2014
reporting periods, and (2) a new Part I.B
would be added to Schedule RC–R
effective March 31, 2014, and would be
completed by advanced approaches
institutions during the 2014 reporting
period. Then, effective March 31, 2015,
Part I.A would be eliminated, Part I.B
would be redesignated Part I of
Schedule RC–R, and all institutions
would complete Part I. Call Report filers
should refer to the revised regulatory
capital rules and the proposed reporting
instructions for further information. The
proposed reporting instructions also
provide guidance on how to calculate
and report items subject to the transition
provisions under section 300 of the
revised regulatory capital rules.
Proposed Part I.B of Schedule RC–R
would be divided into the following
sections: (A) Common equity tier 1
capital; (B) common equity tier 1
capital: adjustments and deductions; (C)
additional tier 1 capital; (D) tier 2
capital; (E) total assets for the leverage
ratio; (F) capital ratios; and (G) capital
buffer. A brief description of each of
these sections and the corresponding
line items is provided below.

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A. Schedule RC–R, Part I.B, Items 1–5:
Common Equity Tier 1 Capital
Proposed line items 1 through 5
would collect information regarding the
new regulatory capital component,
common equity tier 1 capital. The
proposed line items align with the
elements of common equity tier 1
capital under the revised definition of
capital, including (item 1) common
stock plus related surplus (net of
treasury stock and unearned employee
stock ownership plan shares), (item 2)
retained earnings, (item 3) accumulated
other comprehensive income (AOCI),
and (item 4) common equity tier 1

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minority interests.8 As explained in
section 21 of the revised regulatory
capital rules, an institution may include
a limited amount of common equity tier
1 minority interest in a consolidated
subsidiary that is a depository
institution or a foreign bank in its
common equity tier 1 capital. Line item
5 collects the sum of items 1 through 4
to determine common equity tier 1
capital before adjustments and
deductions.
For purposes of reporting line item 3,
AOCI, an institution that is not subject
to the advanced approaches rules may
make a one-time election to opt out of
the requirement to include most
components of AOCI in common equity
tier 1 capital (AOCI opt-out election).
An institution that makes an AOCI optout election must report ‘‘Yes’’ in line
item 3.a and report the amounts in line
items 9.a, 9.b, 9.c, 9.d, and 9.e. An
institution that is not an advanced
approaches institution would make this
election when it completes Schedule
RC–R in its Call Report for March 31,
2015 (or, for an institution that becomes
insured after March 31, 2015, in the first
Call Report it files after becoming
insured). If an institution makes an
AOCI opt-out election, the transition
provisions for AOCI under section 300
of the revised regulatory capital rules
would not apply to the reporting of
AOCI in line item 3.
All advanced approaches banking
organizations that file the Call Report
and all other insured depository
institutions that choose not to make the
AOCI opt-out election must report ‘‘No’’
in line item 3.a and complete line item
9.f. In addition, such institutions must
report AOCI in item 3 subject to the
transition provisions, as described in
section 300 of the revised regulatory
capital rules and the corresponding
instructions.
B. Schedule RC–R, Part I.B, Items 6–19:
Common Equity Tier 1 Capital:
Adjustments and Deductions
Proposed line items 6 through 18
reflect adjustments and deductions to
common equity tier 1 capital, as
described in section 22 of the revised
regulatory capital rules. Institutions
must refer to the revised regulatory
capital rules to determine the conditions
under which deferred tax liabilities
(DTLs) may be netted against assets
subject to deduction. An institution
would calculate and report the
following adjustments and deductions,

as described below, which would be
summed in line item 18 and deducted
from common equity tier 1 capital in
line item 19.
Schedule RC–R, Part I.B, item 6: LESS:
Goodwill net of associated DTLs:
Goodwill is reported and deducted from
common equity tier 1 capital.
Schedule RC–R, Part I.B, item 7: LESS:
Intangible assets (other than goodwill
and mortgage servicing assets (MSAs)),
net of associated DTLs: Intangible
assets, other than goodwill and MSAs,
net of associated DTLs, must be
deducted from common equity tier 1
capital.
Schedule RC–R, Part I.B, item 8: LESS:
Deferred tax assets (DTAs) that arise
from operating loss and tax credit
carryforwards, net of any related
valuation allowances and net of
associated DTLs: An institution must
deduct DTAs that arise from operating
loss and tax credit carryforwards, net of
any related valuation allowances and
net of associated DTLs, from common
equity tier 1 elements.9
Schedule RC–R, Part I.B, item 9:
AOCI-related adjustments: An
institution that makes an AOCI opt-out
election in line item 3.a would adjust its
common equity tier 1 capital by
reporting the amount of specified AOCI
components in line items 9.a, 9.b, 9.c,
9.d, and 9.e, that is, net unrealized gains
(losses) on available-for-sale (AFS)
securities; net unrealized loss on AFS
preferred stock classified as an equity
security under GAAP and AFS equity
exposures; accumulated net gains
(losses) on cash flow hedges; amounts
recorded in AOCI attributed to defined
benefit postretirement plans resulting
from the initial and subsequent
application of the relevant GAAP
standards that pertain to such plans;
and net unrealized gains (losses) on
held-to-maturity securities that are
included in AOCI.
An advanced approaches banking
organization that files the Call Report
and any other insured depository
institution that chooses not to make the
AOCI opt-out election would report in
line item 9.f any accumulated net gain
(loss) on cash flow hedges included in
AOCI, net of applicable tax effects, that
relate to the hedging of items that are
not recognized at fair value on the
balance sheet.
Schedule RC–R, Part I.B, item 10:
LESS: Other deductions from (additions
to) common equity tier 1 capital: Under
the revised regulatory capital rules,

8 Under current GAAP, minority interests are
referred to as noncontrolling interests. In this
regard, on the Call Report balance sheet (Schedule
RC), such interests are labeled ‘‘Noncontrolling
(minority) interests in consolidated subsidiaries.’’

9 DTAs arising from temporary differences that
the banking organization could realize through net
operating loss carrybacks are not subject to
deduction and instead receive a 100 percent risk
weight.

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institutions must make the following
deductions from or additions to
common equity tier 1 capital.
Schedule RC–R, Part I.B, item 10.a:
Unrealized net gain (loss) related to
changes in the fair value of liabilities
that are due to changes in own credit
risk: An institution would report the
amount of unrealized net gain (loss)
related to changes in the fair value of
liabilities measured at fair value on the
balance sheet that are due to changes in
its own credit risk. Advanced
approaches banking organizations
would include the credit spread
premium over the risk-free rate for
derivatives that are liabilities.
Schedule RC–R, Part I.B, item 10.b:
LESS: All other deductions from
(additions to) common equity tier 1
capital before threshold-based
deductions: An institution would report
in line item 10.b the total of the
following deductions and additions:
(1) Gain-on-sale associated with a
securitization exposure: An institution
must deduct from common equity tier 1
capital any after-tax gain-on-sale
associated with a securitization
exposure. Gain-on-sale means an
increase in the equity capital of the
institution resulting from the
consummation or issuance of a
securitization (other than an increase in
equity capital resulting from the
institution’s receipt of cash in
connection with the securitization).
(2) Defined benefit pension fund net
assets net of associated DTLs: Defined
benefit pension fund assets, net of any
associated DTLs, must be deducted from
common equity tier 1 capital. (This
deduction does not pertain to defined
benefit pension fund net assets owned
by depository institutions.)
(3) Investments in own regulatory
capital instruments: To avoid doublecounting of regulatory capital, an
institution must deduct any investments
in its own common equity tier 1, own
additional tier 1, and own tier 2 capital
instruments from its common equity tier
1, additional tier 1, and tier 2 capital
elements, respectively. Any common
equity tier 1, additional tier 1, or tier 2
capital instrument issued by the
institution which the institution could
be contractually obligated to purchase
must be deducted from its common
equity tier 1, additional tier 1, or tier 2
capital elements, respectively. If an
institution already deducts its
investment in its own shares (for
example, treasury stock) from its
common equity tier 1 capital elements,
it does not need to make such deduction
twice.
(4) Reciprocal cross holdings in the
capital instruments of financial

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institutions: A reciprocal cross holding
results from a formal or informal
arrangement between two financial
institutions to swap, exchange, or
otherwise intend to hold each other’s
capital instruments. Institutions must
deduct reciprocal holdings of capital
instruments of other financial
institutions in certain circumstances.
The deduction is made by using the
corresponding deduction approach as
described in section 22(c) of the revised
regulatory capital rules. The
corresponding deduction approach
requires the institution to make the
deduction from the tier of capital for
which the instrument would qualify.
However, if the institution does not
have a sufficient amount of the tier of
capital to effect the required deduction,
the shortfall must be deducted from the
next higher (that is, more subordinated)
component of regulatory capital. For
example, if an institution is required to
deduct a certain amount of regulatory
capital from additional tier 1 capital and
it does not have sufficient additional
tier 1 capital to effectuate the deduction,
then the amount of the deduction in
excess of the available additional tier 1
capital must be made from common
equity tier 1 capital.
(5) Equity investments in financial
subsidiaries: An institution must deduct
the aggregate amount of its outstanding
equity investments, including retained
earnings, in its financial subsidiaries 10
from common equity tier 1 capital and
may not consolidate the assets and
liabilities of a financial subsidiary with
those of the parent institution. No other
deduction is required for these
investments in the capital instruments
of financial subsidiaries.
(6) Advanced approaches banking
organizations that file Call Report: After
such an institution conducts a
satisfactory parallel run, it would
include expected credit losses that
exceed its eligible credit reserves in this
line item.
Schedule RC–R, Part I.B, item 11:
LESS: Non-significant investments in
the capital of unconsolidated financial
institutions in the form of common
stock that exceed the 10 percent
threshold for non-significant
investments: Non-significant
investments in the capital of
unconsolidated financial institutions are
investments where an institution owns
10 percent or less of the issued and
outstanding common shares of an
unconsolidated financial institution. An
institution must deduct the amount of
10 The agencies’ definitions of financial
subsidiary are at 12 CFR 5.39 (OCC); 12 CFR 208.77
(Board); and 12 CFR 362.17 (FDIC).

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its non-significant investments that
exceeds the 10 percent threshold for
non-significant investments (calculated
as described in section 22(c)(4) of the
revised regulatory capital rules and in
the reporting instructions for this line
item), applying the corresponding
deduction approach.
Schedule RC–R, Part I.B, item 12:
Subtotal: An institution would report
the amount in item 5 less the amounts
in items 6 through 11. The amount
reported in this item is used to calculate
the common equity tier 1 capital
deduction thresholds that are used for
reporting items 13, 14, 15, and 16.
Schedule RC–R, Part I.B, items 13
through 16: LESS: Items subject to the
10 and 15 percent common equity tier
1 capital threshold deductions: An
institution must report the amount of
each of the following items that
individually exceeds the 10 percent
common equity tier 1 capital deduction
threshold (that is, 10 percent of the
amount reported in line item 12). These
items are referred to as items subject to
the threshold deductions in section
22(d) of the revised regulatory capital
rules and include: (1) DTAs arising from
temporary differences that could not be
realized through net operating loss
carrybacks, net of any related valuation
allowances and net of DTLs; (2) MSAs
net of associated DTLs; and (3)
significant investments in the capital of
financial institutions in the form of
common stock.
The aggregate amount of the items
subject to the threshold deductions (that
are not deducted in line items 13, 14,
and 15) are not permitted to exceed 15
percent of an institution’s common
equity tier 1 capital. The aggregate
amount in excess of the 15 percent
threshold, if any, calculated in
accordance with section 22(d)(2) of the
revised regulatory capital rules and the
corresponding line item instructions,
must be deducted in line item 16.
Schedule RC–R, Part I.B, item 17:
LESS: Deductions applied to common
equity tier 1 capital due to insufficient
amount of additional tier 1 capital and
tier 2 capital to cover deductions: If an
institution does not have a sufficient
amount of additional tier 1 capital and
tier 2 capital to cover deductions, then
the shortfall must be reported in this
line item.
Schedule RC–R, Part I.B, items 18 and
19: An institution would summarize
total adjustments and deductions in line
item 18 and deduct that amount from its
common equity tier 1 capital before
adjustments and deductions to
determine its common equity tier 1
capital, which would be reported in line
item 19.

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C. Schedule RC–R, Part I.B, Items 20
through 25: Additional Tier 1 Capital,
and Item 26: Tier 1 Capital
Proposed line items 20 through 25
pertain to the reporting of additional tier
1 capital elements. Additional tier 1
capital is the sum of: (item 20)
additional tier 1 capital instruments that
satisfy the eligibility criteria described
in section 20 of the revised regulatory
capital rules plus related surplus; (item
21) non-qualifying capital instruments
subject to phase-out from additional tier
1 capital; and (item 22) tier 1 minority
interest that is not included in an
institution’s common equity tier 1
capital; less (item 24) applicable
deductions.
Line item 26 collects information on
the institution’s tier 1 capital, calculated
as the sum of (item 19) common equity
tier 1 capital and (item 25) additional
tier 1 capital.
D. Schedule RC–R, Part I.B, Items 27
Through 34: Tier 2 Capital, and Item 35:
Total Capital

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Proposed line items 27 through 34
would require reporting of tier 2 capital
elements. Tier 2 capital is the sum of:
(item 27) tier 2 capital instruments that
satisfy the eligibility criteria described
in section 20 of the revised regulatory
capital rules, plus related surplus; (item
28) non-qualifying capital instruments
subject to phase-out from tier 2 capital;
(item 29) total capital minority interest
not included in an institution’s tier 1
capital; (item 30.a) allowance for loan
and lease losses (ALLL) includable in
tier 2 capital; and (item 31) unrealized
gains on AFS preferred stock classified
as an equity security under GAAP and
AFS equity exposures; less (item 33) tier
2 capital deductions.
Advanced approaches banking
organizations would report line items
30.b (eligible credit reserves includable
in tier 2 capital), 32.b (tier 2 capital
before deductions), 34.b (tier 2 capital),
and 35.b (total capital) only after these
institutions conduct a satisfactory
parallel run.
Line item 35.a would collect
information on an institution’s total
capital, which is the sum of (item 26)
tier 1 capital and (item 34) tier 2 capital.
E. Schedule RC–R, Part I.B, Items 36
Through 39: Total Assets for the
Leverage Ratio
Institutions would report total assets
for the leverage ratio denominator in
line item 39, calculated as: (item 36)
average total consolidated assets; less
(item 37) deductions from common
equity tier 1 capital and additional tier
1 capital; and less (item 38) other

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deductions from (additions to) assets for
leverage ratio purposes, as described
under sections 22(a), (c), and (d) of the
revised regulatory capital rules.
F. Schedule RC–R, Part I.B, Items 40
Through 45: Total Risk-Weighted Assets
and Capital Ratios
Line item 40 would collect
information on an institution’s riskweighted assets. Line items 41 through
45 would collect information on the
following regulatory capital ratios: (item
41) common equity tier 1 capital ratio;
(item 42) tier 1 capital ratio; (item 43)
total capital ratio; (item 44) tier 1
leverage ratio; and, for advanced
approaches institutions, (item 45)
supplementary leverage ratio, all
calculated as described in section 10 of
the revised regulatory capital rules.
During the reporting periods in 2014,
Call Report filers would continue
applying the general risk-based capital
rules to report their total risk-weighted
assets in line item 40.a of Part I of
Schedule RC–R (as currently reported in
item 62 of the risk-weighted assets
portion of Schedule RC–R). The amount
in line item 40 would serve as the
denominator of the risk-based capital
ratios reported in line items 41 through
44 (Column A). Effective March 31,
2015, Call Report filers would apply the
standardized approach, described in
subpart D of the revised regulatory
capital rules, to report their riskweighted assets in line item 40.a and the
risk-based capital ratios in line items 41
through 44 (Column A) of the regulatory
capital ratios portion of Schedule RC–R.
Advanced approaches institutions
would report line items 40 through 45
on the proposed Schedule RC–R, Part
I.B, as follows.
• During the reporting periods in
2014, these institutions would continue
applying the general risk-based capital
rules to report their total risk-weighted
assets in line item 40.a, which would
serve as the denominator of the ratios
reported in line items 41 through 44
(Column A).
• Starting on March 31, 2015, these
institutions would apply the
standardized approach, described in
subpart D of the revised regulatory
capital rules, to report their riskweighted assets in item 40.a and the
regulatory capital ratios in items 41
through 44. After they conduct a
satisfactory parallel run, these
institutions would report their total riskweighted assets (item 40.b) and
regulatory capital ratios (items 41
through 44, Column B) using the
advanced approaches rule.
• In addition, starting on March 31,
2015, these institutions would report a

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supplementary leverage ratio in item 45,
as described in section 10 of the revised
regulatory capital rules.
G. Schedule RC–R, Part I.B, Items 46
Through 48: Capital Buffer
Under section 11 of the revised
regulatory capital rules, institutions
must hold sufficient common equity tier
1 capital to avoid limitations on
distributions and discretionary bonus
payments. An institution’s capital
conservation buffer, which would be
reported in item 46.a, is the lowest of
the following measures: (1) The
institution’s common equity tier 1
capital ratio minus the applicable
minimum (4 percent in 2014, 4.5
percent in 2015 and thereafter); (2) the
institution’s tier 1 capital ratio minus
the applicable minimum (5.5 percent in
2014, 6 percent in 2015 and thereafter);
and (3) the institution’s total capital
ratio minus 8 percent. Advanced
approaches banking organizations must
make additional calculations to account
for all the applicable buffers and report
the resulting amount in item 46.b, as
described in section 11 of the revised
regulatory capital rules. If an
institution’s capital buffer is less than or
equal to the applicable minimum capital
conservation buffer (or, in the case of an
advanced approaches institution, the
applicable minimum capital
conservation buffer plus any other
applicable capital buffers), then it must
report eligible retained income in item
47 and distributions and discretionary
bonus payments to executive officers in
item 48, as described in section 11 of
the revised regulatory capital rules.
III. Discussion of the Proposed FFIEC
101 Changes
A. Schedule A: Advanced Risk-Based
Capital
As described in section I.A of this
notice, the proposed revised FFIEC 101
Schedule A incorporates the Basel III
common disclosure template to ensure
consistency and comparability of
reporting of regulatory capital elements
by internationally active institutions.
Although the changes proposed to be
made to Schedule A of the FFIEC 101
are consistent with the regulatory
capital reporting approach followed in
proposed Call Report Schedule RC–R,
Part I.B, as described in section II of this
notice, advanced approaches banking
organizations would provide a more
granular breakdown of regulatory
capital elements, deductions and
adjustments, and regulatory capital
instruments subject to phase-out in
Schedule A, consistent with the Basel III
common disclosure template. Advanced

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approaches banking organizations
would be able to continue to import the
majority of the line items from proposed
Call Report Schedule RC–R, Part I.B,
into proposed revised FFIEC 101
Schedule A.11
Reporting confidential line items
during the parallel run period: As noted
in section I.B of this notice, the agencies
propose to make public the information
collected on proposed revised Schedule
A, except for a few specific line items,
for all advanced approaches banking
organizations, starting with the March
31, 2014, report date. Since the majority
of the line items on the proposed
Schedule A would also be publicly
reported on the proposed Call Report
Schedule RC–R, the additional
disclosure of regulatory capital elements
on proposed revised Schedule A while
the institution is conducting its parallel
run would be minimal.
The agencies propose to grant
confidential treatment to items that are
dependent on the implementation of the
advanced approaches systems to ensure
compliance with the revised advanced
approaches rules. Specifically, while an
institution is conducting its parallel run,
the following line items on proposed
revised Schedule A would be reported
on a confidential basis using the revised
advanced approaches rules: item 78
(total eligible credit reserves calculated
under the advanced approaches rules);
item 79 (amount of eligible credit
reserves includable in tier 2 capital);
item 86 (expected credit loss that
exceeds eligible credit reserves); item 87
(advanced approaches risk-weighted
assets); item 88 (common equity tier 1
capital ratio calculated using the
advanced approaches); item 89 (tier 1
capital ratio calculated using the
advanced approaches); and item 90
(total capital ratio using the advanced
approaches). In addition, an institution
that is conducting its parallel run would
report ‘‘zero’’ in line item 12 (expected
credit loss that exceeds eligible credit
reserves) and would report line item 50
(eligible credit reserves) and line item
60 (total risk-weighted assets) by
applying the general risk-based capital
rules in 2014 and the standardized
approach in 2015.
After an institution conducts a
satisfactory parallel run, the entire
Schedule A would be made public. In
addition, such an institution would then
begin to report line item 12 (expected
credit loss that exceeds eligible credit
11 Advanced approaches banking organizations
that file the FR Y–9C rather than the Call Report
would be able to import the majority of the line
items from proposed revised Schedule HC–R
published by the Federal Reserve Board into
proposed revised FFIEC 101 Schedule A.

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reserves), line item 50 (eligible credit
reserves), and line item 60 (total riskweighted assets) using the revised
advanced approaches rules.
Supplementary leverage ratio:
Proposed line items 91 through 98 in
the Schedule A would collect data on a
new supplementary leverage ratio
requirement for advanced approaches
banking organizations, effective March
31, 2015. Consistent with the revised
regulatory capital rules, an advanced
approaches banking organization would
report the supplementary leverage ratio
calculated as the simple arithmetic
mean of the three monthly leverage
ratios over the reporting quarter.
B. Schedules B, C, D, H, I, J, P, Q, and
R: Risk-Weighted Assets
This section describes the proposed
revisions to Schedules B, C, D, H, I, J,
P, Q, and R of the FFIEC 101, which are
intended to be consistent with the
revised advanced approaches rules to
calculate the risk-weighted assets. The
proposed revisions reflect changes to
the methodologies for calculating
regulatory capital for counterparty
credit risk, securitization exposures, and
exposures to central counterparties
(CCPs). In addition, the proposed
changes incorporate capital
requirements for credit valuation
adjustments (CVA), wrong-way risk,
margin risk, exposures subject to a
wholesale correlation factor multiplier
of 1.25, cleared derivative and repostyle transactions, and default fund
contributions to CCPs.
As is currently the case, FFIEC 101
Schedules B through S will be given
confidential treatment while an
institution is conducting its parallel run.
Also, as is currently the case, after an
institution conducts a satisfactory
parallel run, Schedule B and line items
1 and 2 of Schedule S will no longer be
given confidential treatment.
Schedules H and J: Credit valuation
adjustments (CVAs): The proposed
insertion of memorandum items in
Schedule H (Wholesale Exposure:
Eligible Margin Loans, Repo-Style
Transactions, and OTC Derivatives with
Cross-Product Netting) and Schedule J
(Wholesale Exposure: OTC Derivatives
No Cross-Product Netting) reflects the
CVA requirements for over-the-counter
(OTC) derivative activities. Under the
revised regulatory capital rules, CVA is
the fair value adjustment to reflect
counterparty credit risk in the valuation
of an OTC derivative contract.
Advanced approaches banking
organizations must hold capital to
reflect the CVA due to changes in
counterparties’ credit spreads, assuming
fixed expected exposure (EE) profiles.

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The advanced approaches rules provide
two approaches for calculating the CVA
capital requirement: the simple and
advanced CVA approaches. The
conditions for each approach, as well as
the methods for calculation, are
described in section 132 of the revised
regulatory capital rules.
Schedule P: Securitization exposures:
The agencies propose to combine the
current Schedule P (Securitization
Exposures Subject to Ratings-based or
Internal Assessment Approaches) and
Schedule Q (Securitization Detail
Schedule) into a new Schedule P
(Securitization Exposures). This
proposed revision reflects a number of
changes to the securitization framework,
including the replacement of the
ratings-based and internal assessment
approaches from the advanced
approaches rules with the simplified
supervisory formula approach, and the
introduction of a specific treatment for
resecuritization exposures. The revised
advanced approaches rules introduce
enhanced due diligence requirements
and require banking organizations to
assign higher risk weights to
resecuritization exposures than other
securitization exposures with similar
credit characteristics. The revised
advanced approaches rules introduce
new operational criteria for recognizing
risk transfer as well as revisions to the
hierarchy of approaches in the
securitization framework. The
operational criteria as well as the
revised hierarchy of approaches are
described in sections 141 through 145 of
the revised regulatory capital rules.
Schedule Q: Cleared transactions: The
proposed new Schedule Q (Cleared
Transactions) reflects the treatment for
cleared transactions and is intended to
capture exposures to CCPs. The revised
advanced approaches rules introduce a
capital requirement for transactions
with CCPs and a more risk-sensitive
approach for determining the capital
requirement for a banking organization’s
contributions to the default funds of
these CCPs. The calculation of the trade
exposure amount for a cleared
transaction is described in section 133
of the revised regulatory capital rules.
Schedules C, D, H, I, and J: Exposures
subject to a 1.25 asset correlation factor:
The proposed insertion of memorandum
items in Schedule C (Wholesale
Exposure: Corporate), Schedule D
(Wholesale Exposure: Bank), Schedule
H (Wholesale Exposure: Eligible Margin
Loans, Repo-Style Transactions, and
OTC Derivatives with Cross-Product
Netting); Schedule I (Wholesale
Exposure: Eligible Margin Loans and
Repo-Style Transactions No CrossProduct Netting), and Schedule J

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Federal Register / Vol. 78, No. 155 / Monday, August 12, 2013 / Notices

(Wholesale Exposure: OTC Derivatives
No Cross-Product Netting) reflects the
new 1.25 asset correlation factor for
certain unregulated financial
institutions as well as regulated
financial institutions with assets of at
least $100 billion. The advanced
approaches rules introduce the 1.25
multiplier to capture the correlation of
financial institutions’ common risk
factors. The formula for these wholesale
exposures is described in section 131 of
the revised regulatory capital rules.
Schedules H, I, and J: Internal models
methodology (IMM) margin period of
risk and specific wrong-way risk: The
proposed insertion of memorandum
items in Schedule H (Wholesale
Exposure: Eligible Margin Loans, RepoStyle Transactions, and OTC Derivatives
with Cross-Product Netting), Schedule I
(Wholesale Exposure: Eligible Margin
Loans and Repo-Style Transactions No
Cross-Product Netting) and Schedule J
(Wholesale Exposure: OTC Derivatives
No Cross-Product Netting) reflects the
new capital requirements for the margin
period of risk and wrong-way risk in the
advanced approaches. The revised
advanced approaches rules introduce an
increased margin period of risk of 20
days. In addition, for OTC derivative
transactions, repo-style transactions,
and margin loans that exhibit wrongway risk, the advanced approaches rules
require a banking organization to apply
an increased capital requirement rather
than the IMM to these exposures. The
calculations and requirements
associated with margin period of risk
and wrong-way risk are described in
section 132 of the revised regulatory
capital rules.
Schedules B and R: Summary table
and equity exposures: The proposed
revisions to Schedule B (Summary Riskweighted Assets Information for Banks)
reflect the proposed changes to the
schedules described above in this
section III.B. In addition, the revised
advanced approaches rules remove the
prior money market fund approach for
equity exposures. Accordingly, in
proposed revised Schedule R (Equity
Exposures), the agencies propose to
remove this approach.

agencies expect all reporting entities to
meet the existing reporting standards for
accuracy and other requirements as
currently mandated by their primary
federal supervisor.
See section I.B of this notice for a
detailed discussion of the timing for the
implementation of the proposed
reporting changes.

Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.

V. Request for Comment

[OMB Control No. 2900–0020]

Public comment is requested on all
aspects of this joint notice. In particular,
do advanced approaches institutions
expect that making any specific line
items on proposed revised FFIEC 101
Schedule A public would cause them
competitive or other harm? If so,
identify the specific line items and
describe in detail the nature of the
harm.
Additionally, comments are invited
on
(a) Whether the collections of
information that are the subject of this
notice are necessary for the proper
performance of the agencies’ functions,
including whether the information has
practical utility;
(b) The accuracy of the agencies’
estimates of the burden of the
information collections as they are
proposed to be revised, including the
validity of the methodology and
assumptions used;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
information collections on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Comments submitted in response to
this joint notice will be shared among
the agencies and will be summarized or
included in the agencies’ requests for
OMB approval. All comments will
become a matter of public record.

Agency Information Collection
(Designation of Beneficiary) Activities
Under OMB Review

IV. Scope and Frequency of Reporting
The proposed regulatory reporting
changes to Call Report Schedule RC–R
ultimately would apply to all Call
Report filers. The proposed revisions to
the FFIEC 101 would apply only to
advanced approaches banking
organizations. Each reporting entity
would continue to submit the applicable
quarterly reports on the same due dates
as are currently in effect for the
reporting entity. In addition, the

Dated: August 5, 2013.
Stuart Feldstein,
Director, Legislative and Regulatory Activities
Division, Office of the Comptroller of the
Currency.

VerDate Mar<15>2010

14:51 Aug 09, 2013

Jkt 229001

Board of Governors of the Federal Reserve
System, August 5, 2013.
Robert deV. Frierson,
Secretary of the Board.
Dated at Washington, DC, this 2nd day of
August, 2013.

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[FR Doc. 2013–19354 Filed 8–9–13; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P

DEPARTMENT OF VETERANS
AFFAIRS

Veterans Benefits
Administration, Department of Veterans
Affairs.
ACTION: Notice.
AGENCY:

In compliance with the
Paperwork Reduction Act (PRA) of 1995
(44 U.S.C. 3501–3521), this notice
announces that the Veterans Benefits
Administration, Department of Veterans
Affairs, has submitted the collection of
information abstracted below to the
Office of Management and Budget
(OMB) for review and comment. The
PRA submission describes the nature of
the information collection and its
expected cost and burden and includes
the actual data collection instrument.
DATES: Comments must be submitted on
or before September 11, 2013.
ADDRESSES: Submit written comments
on the collection of information through
www.Regulations.gov or to VA’s OMB
Desk Officer, OMB Human Resources
and Housing Branch, New Executive
Office Building, Room 10235,
Washington, DC 20503 (202) 395–7316.
Please refer to ‘‘OMB Control No. 2900–
0020’’ in any correspondence.
FOR FURTHER INFORMATION CONTACT:
Crystal Rennie, Enterprise Records
Service (005R1B), Department of
Veterans Affairs, 810 Vermont Avenue
NW., Washington, DC 20420, (202) 632–
7492 or email crystal.rennie@va.gov.
Please refer to ‘‘OMB Control No. 2900–
0020.’’
SUPPLEMENTARY INFORMATION:
Title: Designation of Beneficiary,
Government Life Insurance, VA Form
29–336.
OMB Control Number: 2900–0020.
Type of Review: Extension of a
currently approved collection.
Abstract: VA Form 29–336 is
completed by the insured to designate a
beneficiary and select an optional
settlement to be used when the
Government Life Insurance matures by
death.
An agency may not conduct or
sponsor, and a person is not required to
SUMMARY:

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