30-Day Federal Register Notice

Federal Register / Vol. 84, No. 31 / Thursday, February 14, 2019 / Notices
option of reporting exempt data fields as
long as they report all data fields within
any exempt data point for which they
report data.
Section 104(a) of the EGRRCPA
amends HMDA section 304(i), which
provides that the requirements of
HMDA section 304(b)(5) and (6) shall
not apply with respect to closed-end
mortgage loans of an insured depository
institution or insured credit union if it
originated fewer than 500 closed-end
mortgage loans in each of the two
preceding calendar years. Sections
304(b)(5) and (6) do not apply with
respect to open-end lines of credit of an
insured depository institution or
insured credit union if it originated
fewer than 500 open-end lines of credit
in each of the two preceding calendar
years. An insured depository institution
still must comply with HMDA section
304(b)(5) and (6) if it has received a
rating of ‘‘needs to improve record of
meeting community credit needs’’
during each of its two most recent
examinations or a rating of ‘‘substantial
noncompliance in meeting community
credit needs’’ on its most recent
Community Reinvestment Act
examination.
We have adjusted our burden
estimates based on section 104(a). We
are soliciting comment on the questions
set forth below in light of the section
104(a) changes.
Affected Public: Businesses or other
for-profit.
Burden Estimates:
2018:
Estimated Number of Respondents:
683.
Estimated Annual Burden: 723,233
hours.
2019:
Estimated Number of Respondents:
683.
Estimated Annual Burden: 635,938
hours.
Frequency of Response: On occasion.
Comments: Comments submitted in
response to this notice will be
summarized and included in the request
for OMB approval. All comments will
become a matter of public record.
Comments are invited on:
(a) Whether the collections of
information are necessary for the proper
performance of the functions of the
OCC, including whether the information
has practical utility; (b) The accuracy of
the OCC’s estimates of the information
collection burden; (c) Ways to enhance
the quality, utility, and clarity of the
information to be collected; (d) Ways to
minimize the burden of the collection
on respondents, including through the
use of automated collection techniques
or other forms of information

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technology; and (e) Estimates of capital
or start-up costs and costs of operation,
maintenance, and purchase of services
to provide information.
Dated: February 8, 2019.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the
Comptroller of the Currency.
[FR Doc. 2019–02328 Filed 2–13–19; 8:45 am]
BILLING CODE 4810–33–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 a
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 September 28, 2018, the
agencies, under the auspices of the
Federal Financial Institutions
Examination Council (FFIEC), requested
public comment for 60 days on a
proposal to revise and extend the
Consolidated Reports of Condition and
Income for a Bank with Domestic and
Foreign Offices (FFIEC 031), the
Consolidated Reports of Condition and
Income for a Bank with Domestic
Offices Only (FFIEC 041), and the
Consolidated Reports of Condition and
Income for a Bank with Domestic
Offices Only and Total Assets Less Than
$1 Billion (FFIEC 051), which are
currently approved collections of
information. The Consolidated Reports
of Condition and Income are commonly
referred to as Call Reports. In addition,
the FFIEC requested public comment for
60 days on a proposal to revise and
extend the Report of Assets and
Liabilities of U.S. Branches and
Agencies of Foreign Banks (FFIEC 002)
and the Report of Assets and Liabilities

SUMMARY:

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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), which are currently approved
collections of information. The Board
published this proposal on behalf of the
agencies. Also, the agencies requested
public comment for 60 days on
proposals to revise and extend the
Foreign Branch Report of Condition
(FFIEC 030), the Abbreviated Foreign
Branch Report of Condition (FFIEC
030S), and the Regulatory Capital
Reporting for Institutions Subject to the
Advanced Capital Adequacy Framework
(FFIEC 101), which are currently
approved collections of information.
The comment period for the
September 2018 notice ended on
November 27, 2018. As described in the
SUPPLEMENTARY INFORMATION section,
after considering the comments received
on the proposals, the FFIEC and
agencies will proceed with the proposed
reporting revisions to and extensions of
the FFIEC 031, FFIEC 041, FFIEC 051,
FFIEC 002, FFIEC 002S, FFIEC 030,
FFIEC 030S, and FFIEC 101, as
originally proposed, with some
modification to the FFIEC 031 and
FFIEC 041. These proposed revisions
generally address the revised accounting
for credit losses under the Financial
Accounting Standards Board’s (FASB)
Accounting Standards Update (ASU)
No. 2016–13, ‘‘Financial Instruments—
Credit Losses (Topic 326): Measurement
of Credit Losses on Financial
Instruments’’ (ASU 2016–13). This
proposal also includes regulatory capital
reporting changes related to
implementing the agencies’ recent final
rule on the implementation and capital
transition for the current expected credit
losses methodology (CECL).
In addition, this notice includes other
revisions to the Call Reports and the
FFIEC 101 resulting from two sections
of the Economic Growth, Regulatory
Relief, and Consumer Protection Act
(EGRRCPA), effective upon enactment
on May 24, 2018, that affect the
information reported in these reports
and for which the agencies submitted
emergency review requests to OMB that
OMB has approved.
The proposed revisions related to
ASU 2016–13 would begin to take effect
March 31, 2019, for reports with
quarterly report dates and December 31,
2019, for reports with an annual report
date, with later effective dates for
certain respondents.
In addition, the agencies are giving
notice they are sending the collections
to OMB for review.
DATES: Comments must be submitted on
or before March 18, 2019.

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Federal Register / Vol. 84, No. 31 / Thursday, February 14, 2019 / Notices

Interested parties are
invited to submit written comments to
any or all of the agencies. All comments,
which should refer to the ‘‘CECL and
EGRRCPA Reporting Revisions,’’ will be
shared among the agencies.
OCC: Commenters are encouraged to
submit comments by email, if possible.
You may submit comments by any of
the following methods:
• Email: prainfo@occ.treas.gov.
• Mail: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, Attention:
‘‘CECL and EGRPRA Reporting
Revisions,’’ 400 7th Street SW, Suite
3E–218, Washington, DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘CECL
and EGRPRA Reporting Revisions,’’ in
your comment. In general, the OCC will
publish your comment on
www.reginfo.gov without change,
including any business or personal
information that you provide, such as
name and address information, email
addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
Additionally, please send a copy of
your comments by mail to: OCC Desk
Officer, U.S. Office of Management and
Budget, Attn: 1557–0081, 1557–0099,
1557–0239, 725 17th Street NW,
#10235, Washington, DC 20503 or by
email to oira_submission@omb.eop.gov.
You may review comments and other
related materials that pertain to this
information collection following the
close of the 30-Day comment period for
this notice by any of the following
methods:
• Viewing Comments Electronically:
Go to www.reginfo.gov. Click on the
‘‘Information Collection Review’’ tab.
Underneath the ‘‘Currently under
Review’’ section heading, from the dropdown menu, select ‘‘Department of
Treasury’’ and then click ‘‘submit.’’ This
information collection can be located by
searching by OMB control numbers
1557–0081, 1557–0099, and 1557–0239.
Upon finding the appropriate
information collection, click on the
related ‘‘ICR Reference Number.’’ On the
next screen, select ‘‘View Supporting
Statement and Other Documents’’ and
then click on the link to any comment
listed at the bottom of the screen.

ADDRESSES:

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• For assistance in navigating
www.reginfo.gov, please contact the
Regulatory Information Service Center
at (202) 482–7340.
• Viewing Comments Personally: You
may personally inspect comments at the
OCC, 400 7th Street SW, Washington,
DC. For security reasons, the OCC
requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 649–6700 or,
for persons who are deaf or hearing
impaired, TTY, (202) 649–5597. Upon
arrival, visitors will be required to
present valid government-issued photo
identification and submit to security
screening in order to inspect comments.
Board: You may submit comments,
which should refer to ‘‘CECL and
EGRRCPA Reporting Revisions,’’ by any
of the following methods:
• Agency Website: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at:
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Email: regs.comments@
federalreserve.gov. Include ‘‘CECL and
EGRRCPA Reporting 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
from the Board’s website 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 form in Room 3515, 1801 K Street
NW (between 18th and 19th Streets
NW), Washington, DC 20006 between
9:00 a.m. and 5:00 p.m. on weekdays.
FDIC: You may submit comments,
which should refer to ‘‘CECL and
EGRRCPA Reporting Revisions,’’ by any
of the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal/.
Follow the instructions for submitting
comments on the FDIC’s website.
• Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Email: comments@FDIC.gov.
Include ‘‘CECL and EGRRCPA Reporting
Revisions’’ in the subject line of the
message.
• Mail: Manuel E. Cabeza, Counsel,
Attn: Comments, Room MB–3007,
Federal Deposit Insurance Corporation,

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550 17th Street, NW, Washington, DC
20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street Building
(located on F Street) on business days
between 7:00 a.m. and 5:00 p.m.
Public Inspection: All comments
received will be posted without change
to https://www.fdic.gov/regulations/
laws/federal/ including any personal
information provided. Paper copies of
public comments may be requested from
the FDIC Public Information Center by
telephone at (877) 275–3342 or (703)
562–2200.
Additionally, commenters may send a
copy of their comments to the OMB
desk 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 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
reporting forms for the reports within
the scope of this notice can be obtained
at the FFIEC’s website (https://
www.ffiec.gov/ffiec_report_forms.htm).
OCC: Kevin Korzeniewski, Counsel,
(202) 649–5490, or for persons who are
deaf or hearing impaired, TTY, (202)
649–5597, Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
Street SW, Washington, DC 20219.
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:
I. Background
A. ASU 2016–13, ‘‘Financial
Instruments—Credit Losses (Topic 326):
Measurement of Credit Losses on
Financial Instruments’’
In June 2016, the FASB issued ASU
2016–13, which introduced CECL for
estimating allowances for credit losses
and added Topic 326, Credit Losses, to
the Accounting Standards Codification
(ASC). The new credit losses standard

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Federal Register / Vol. 84, No. 31 / Thursday, February 14, 2019 / Notices
changes several aspects of existing U.S.
generally accepted accounting
principles (U.S. GAAP) as follows:
• Introduction of a New Credit Loss
Methodology
The new accounting standard
developed by the FASB has been
designed to replace the existing
incurred loss methodology in U.S.
GAAP. Under CECL, the allowance for
credit losses is an estimate of the
expected credit losses on financial
assets measured at amortized cost,
which is measured using relevant
information about past events, including
historical credit loss experience on
financial assets with similar risk
characteristics, current conditions, and
reasonable and supportable forecasts
that affect the collectability of the
remaining cash flows over the
contractual term of the financial assets.
In concept, an allowance will be created
upon the origination or acquisition of a
financial asset measured at amortized
cost. At subsequent reporting dates, the
allowance will be reassessed for a level
that is appropriate as determined in
accordance with CECL. The allowance
for credit losses under CECL is a
valuation account, measured as the
difference between the financial assets’
amortized cost basis and the amount
expected to be collected on the financial
assets, i.e., lifetime expected credit
losses.
• Reduction in the Number of Credit
Impairment Models
Impairment measurement under
existing U.S. GAAP has often been
considered complex because it
encompasses five credit impairment
models for different financial assets.1 In
contrast, CECL introduces a single
measurement objective to be applied to
all financial assets measured at
amortized cost, including loans heldfor-investment (HFI) and held-tomaturity (HTM) debt securities. CECL
does not, however, specify a single
method for measuring expected credit
losses; rather, it allows any reasonable
approach, as long as the estimate of
expected credit losses achieves the
objective of the FASB’s new accounting
standard. Under the existing incurred
loss methodology, institutions use
various methods, including historical
1 Current U.S. GAAP includes five different credit
impairment models for instruments within the
scope of CECL: ASC Subtopic 310–10, ReceivablesOverall; ASC Subtopic 450–20, Contingencies-Loss
Contingencies; ASC Subtopic 310–30, ReceivablesLoans and Debt Securities Acquired with
Deteriorated Credit Quality; ASC Subtopic 320–10,
Investments-Debt and Equity Securities—Overall;
and ASC Subtopic 325–40, Investments-OtherBeneficial Interests in Securitized Financial Assets.

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loss rate methods, roll-rate methods,
and discounted cash flow methods, to
estimate credit losses. CECL allows the
continued use of these methods;
however, certain changes to these
methods will need to be made in order
to estimate lifetime expected credit
losses.
• Purchased Credit-Deteriorated (PCD)
Financial Assets
CECL introduces the concept of PCD
financial assets, which replaces
purchased credit-impaired (PCI) assets
under existing U.S. GAAP. The
differences in the PCD criteria compared
to the existing PCI criteria will result in
more purchased loans HFI, HTM debt
securities, and available-for-sale (AFS)
debt securities being accounted for as
PCD financial assets. In contrast to the
existing accounting for PCI assets, the
new standard requires the estimate of
expected credit losses embedded in the
purchase price of PCD assets to be
estimated and separately recognized as
an allowance as of the date of
acquisition. This is accomplished by
grossing up the purchase price by the
amount of expected credit losses at
acquisition, rather than being reported
as a credit loss expense. As a result, as
of the acquisition date, the amortized
cost basis of a PCD financial asset is
equal to the purchase price of the asset
plus the allowance for credit losses,
rather than equal to the purchase price
as is currently recorded for PCI loans.
• AFS Debt Securities
The new accounting standard also
modifies the existing accounting
practices for impairment on AFS debt
securities. Under this new standard,
institutions will recognize a credit loss
on an AFS debt security through an
allowance for credit losses, rather than
a direct write-down as is required by
current U.S. GAAP. The recognized
credit loss is limited to the amount by
which the amortized cost of the security
exceeds fair value. A write-down of an
AFS debt security’s amortized cost basis
to fair value, with any incremental
impairment reported in earnings, would
be required only if the fair value of the
AFS debt security is less than its
amortized cost basis and either (1) the
institution intends to sell the debt
security, or (2) it is more likely than not
that the institution will be required to
sell the security before recovery of its
amortized cost basis.
Although the measurement of credit
loss allowances is changing under
CECL, the FASB’s new accounting
standard does not address when a
financial asset should be placed in
nonaccrual status. Therefore,

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institutions should continue to apply
the agencies’ nonaccrual policies that
are currently in place.2 In addition, the
FASB retained the existing write-off
guidance in U.S. GAAP, which requires
an institution to write off a financial
asset in the period the asset is deemed
uncollectible.
Institutions 3 must apply ASU 2016–
13 in their Call Report, FFIEC 002,4
FFIEC 002S, FFIEC 030, FFIEC 030S,
and FFIEC 101 submissions in
accordance with the effective dates set
forth in the ASU, if an institution is
required to file such form. For
institutions that are public business
entities (PBE) and also are Securities
and Exchange Commission (SEC) filers,
as both terms are defined in U.S. GAAP,
the new credit losses standard is
effective for fiscal years beginning after
December 15, 2019, including interim
periods within those fiscal years. Thus,
for an SEC filer that has a calendar year
fiscal year, the standard is effective
January 1, 2020, and the institution
must first apply the new credit losses
standard in its Call Report, FFIEC 002,5
FFIEC 002S, FFIEC 030, and FFIEC 101
for the quarter ended March 31, 2020
(and in its FFIEC 030S for December 31,
2020), if the institution is required to
file these forms.
For a PBE that is not an SEC filer, the
credit losses standard is effective for
fiscal years beginning after December
15, 2020, including interim periods
within those fiscal years. Thus, for a
PBE that is not an SEC filer and has a
calendar year fiscal year, the standard is
effective January 1, 2021, and the
institution must first apply the new
credit losses standard in its Call Report,
FFIEC 002,6 FFIEC 002S, FFIEC 030,
and FFIEC 101 for the quarter ended
March 31, 2021 (and in its FFIEC 030S
for December 31, 2021), if the institution
is required to file these forms.
2 For further information, refer to the Glossary
entry for ‘‘Nonaccrual Status’’ in the FFIEC 031 and
FFIEC 041 Call Report instruction book, the FFIEC
051 Call Report instruction book, or the FFIEC 002
instruction book.
3 Institutions include banks, savings associations,
holding companies, U.S. branches and agencies of
foreign banks, and foreign branches of U.S. banks
and U.S. savings associations.
4 As stated in the instructions for the FFIEC 002,
U.S. branches and agencies of foreign banks may
choose to, but are not required to, maintain an
allowance for loan losses on an office level.
Similarly, under this proposal, U.S. branches and
agencies of foreign banks that have adopted ASU
2016–13 may choose to, but are not required to,
maintain allowances for credit losses on loans and
other financial assets measured at amortized cost
(such as HTM debt securities), net investments in
leases, and off-balance sheet credit exposures (not
accounted for as insurance) on an office level.
5 See footnote 4.
6 See footnote 4.

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For an institution that is not a PBE,
the credit losses standard is effective for
fiscal years beginning after December
15, 2021, including interim periods
within those fiscal years.7 Thus, for an
institution that is not a PBE and has a
calendar year fiscal year, the standard is
effective January 1, 2022, and the
institution must first apply the new

credit losses standard in its Call Report,
FFIEC 002,8 FFIEC 002S, FFIEC 030,
FFIEC 030S, and FFIEC 101 for the
quarter ended March 31, 2022 (and in
its FFIEC 030S for December 31, 2022)
if the institution is required to file these
forms.
For regulatory reporting purposes,
early application of the new credit

losses standard is permitted for all
institutions for fiscal years beginning
after December 15, 2018, including
interim periods within those fiscal
years.
The following table provides a
summary of the effective dates for ASU
2016–13.

EFFECTIVE DATES FOR ASU 2016–13
Regulatory report
effective date *

U.S. GAAP effective date
PBEs That Are SEC Filers ...................
Other PBEs (Non-SEC Filers) ..............
Non-PBEs .............................................
Early Application ...................................

Fiscal years beginning after 12/15/2019, including interim periods within those
fiscal years.
Fiscal years beginning after 12/15/2020, including interim periods within those
fiscal years.
Fiscal years beginning after 12/15/2021, including interim periods within those
fiscal years.9
Early adoption permitted for fiscal years beginning after 12/15/2018, including
interim periods within those fiscal years.

3/31/2020.
3/31/2021.
3/31/2022.10
First 3/31 after the 1/1
effective date of
early adoption of
the ASU.

* For institutions with calendar year fiscal year-ends and reports with quarterly report dates.

For additional information on key
elements of the new accounting
standard and initial supervisory views
with respect to measurement methods,
use of vendors, portfolio segmentation,
data needs, qualitative adjustments, and
allowance processes, refer to the
agencies’ Joint Statement on the New
Accounting Standard on Financial
Instruments—Credit Losses issued on
June 17, 2016, and Frequently Asked
Questions on the New Accounting
Standard on Financial Instruments—
Credit Losses (CECL FAQs), which were
last updated on September 6, 2017.11

revisions to the information collections
affected by the above statutory changes,
the expiration date of these collections
has been revised to February 28, 2019.
The agencies are now undertaking the
regular PRA process for revising and
extending these information collections
for three years as described in this
notice.

B. EGRRCPA
On May 24, 2018, EGRRCPA amended
various statutes administered by the
agencies and affected regulations issued
by the agencies.12 Two of the
amendments made by EGRRCPA, as
described below, took effect on the day
of EGRRCPA’s enactment and impact
institutions’ regulatory reports. In
response to emergency review requests,
the agencies received approval from
OMB to revise the reporting of
information in the Call Reports on
certain high volatility commercial real
estate (HVCRE) exposures and
reciprocal deposits and in the FFIEC
101 report on certain HVCRE exposures
for the June 30, 2018, report date. As a
result of OMB’s emergency approval of

• HVCRE Exposures
Section 214 of EGRRCPA adds a new
Section 51 to the Federal Deposit
Insurance Act (FDI Act) governing the
risk-based capital requirements for
certain acquisition, development, or
construction (ADC) loans. EGRRCPA
provides that, effective upon enactment,
the agencies may only require a
depository institution to assign a
heightened risk weight to an HVCRE
exposure if such exposure is an
‘‘HVCRE ADC Loan,’’ as defined in
Section 214 of EGRRCPA. Accordingly,
a depository institution is permitted to
use the definition of HVCRE ADC Loan
in place of the existing definition of
HVCRE loan when reporting HVCRE
exposures held for sale, held for
investment, and held for trading on
Schedule RC–R, Regulatory Capital, Part
II, Risk-Weighted Assets, in the Call
Reports, as well as on Schedule B and
Schedule G in the FFIEC 101 for
institutions required to file that form.

7 Subsequent to the publishing of the initial 60day Federal Register notice for this proposal, the
FASB amended the effective date to the periods
indicated for entities that are not PBEs (non-PBEs)
through an ASU issued November 15, 2018, ASU
No. 2018–19, Codification Improvements to Topic
326: Financial Instruments—Credit Losses. The

effective date for these entities reflected in this
notice has been updated as appropriate.
8 See footnote 4.
9 See footnote 7.
10 See footnote 7.
11 The CECL FAQs and a related link to the joint
statement can be found on the following agency

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• Reciprocal Deposits
Section 29 of the FDI Act (12 U.S.C.
1831f), as amended by Section 202 of
EGRRCPA, excepts a capped amount of
reciprocal deposits from treatment as
brokered deposits for qualifying
institutions, effective upon enactment.
The current Call Report instructions,
consistent with the law prior to the
enactment of EGRRCPA, treat all
reciprocal deposits as brokered deposits.
When reporting in the Call Report,
institutions should apply the newly
defined terms and other provisions of
Section 202 to determine whether they
and their reciprocal deposits are eligible
for the statutory exclusion and report as
brokered deposits in Schedule RC–E,
and brokered reciprocal deposits in
Schedule RC–O, only those reciprocal
deposits that are considered brokered
reciprocal deposits under the new law.
II. Affected Reports and Specific
Revisions
A. Call Reports
The agencies propose to extend for
three years, with revision, the FFIEC
031, FFIEC 041, and FFIEC 051 Call
Reports.
Report Title: Consolidated Reports of
Condition and Income (Call Report).
Form Numbers: FFIEC 031 (for banks
and savings associations with domestic
websites: Board: https://www.federalreserve.gov/
supervisionreg/srletters/sr1708a1.pdf; FDIC: https://
www.fdic.gov/news/news/financial/2017/
fil17041a.pdf; OCC: https://www.occ.gov/topics/
bank-operations/accounting/cecl/cecl-faqs.html.
12 Public Law 115–174, 132 Stat. 1296 (2018).

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Federal Register / Vol. 84, No. 31 / Thursday, February 14, 2019 / Notices
and foreign offices), FFIEC 041 (for
banks and savings associations with
domestic offices only),13 and FFIEC 051
(for banks and savings associations with
domestic offices only and total assets
less than $1 billion).
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.

(for national banks), 12 U.S.C. 324 (for
state member banks), 12 U.S.C. 1817 (for
insured state nonmember commercial
and savings banks), and 12 U.S.C. 1464
(for federal and state savings
associations). At present, except for
selected data items and text, these
information collections are not given
confidential treatment.

OCC
OMB Control No.: 1557–0081.
Estimated Number of Respondents:
1,207 national banks and federal savings
associations.
Estimated Average Burden per
Response: 45.76 burden hours per
quarter to file.
Estimated Total Annual Burden:
220,929 burden hours to file.

Abstract

Board
OMB Control No.: 7100–0036.
Estimated Number of Respondents:
796 state member banks.
Estimated Average Burden per
Response: 50.11 burden hours per
quarter to file.
Estimated Total Annual Burden:
159,550 burden hours to file.
FDIC
OMB Control No.: 3064–0052.
Estimated Number of Respondents:
3,523 insured state nonmember banks
and state savings associations.
Estimated Average Burden per
Response: 44.65 burden hours per
quarter to file.
Estimated Total Annual Burden:
629,208 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. When the estimates
are calculated by type of report across
the agencies, the estimated average
burden hours per quarter are 95.47
(FFIEC 031), 55.71 (FFIEC 041), and
39.77 (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
banks and savings associations under
each agency’s supervision (e.g., size
distribution of such institutions, types
of activities in which they are engaged,
and existence of foreign offices).
Type of Review: Extension and
revision of currently approved
collections.
General Description of Reports
The Call Report information
collections are mandatory: 12 U.S.C. 161
13 Banks and savings associations with domestic
offices only and total consolidated assets of $100
billion or more file the FFIEC 031 report rather than
the FFIEC 041 report.

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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, in particular,
interstate merger and acquisition
applications for which the agencies are
required by law to determine whether
the resulting institution would control
more than 10 percent of the total
amount of deposits of insured
depository institutions in the United
States. Call Report data also are used to
calculate institutions’ deposit insurance
and Financing Corporation 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, on behalf of
the agencies 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.

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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—23.87 hours;
FFIEC 002S—6.0 hours.
Estimated Total Annual Burden:
FFEIC 002—19,955 hours; FFIEC 002S—
912 hours.
Type of Review: Extension and
revision of currently approved
collections.
General Description of Reports
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)).
Abstract
On a quarterly basis, all U.S. branches
and agencies of foreign banks are
required to file the FFIEC 002, which is
a detailed report of condition with a
variety of supporting schedules. This
information is used to fulfill the
supervisory and regulatory requirements
of the International Banking Act of
1978. The data are also used to augment
the bank credit, loan, and deposit
information needed for monetary policy
and other public policy purposes. The
FFIEC 002S is a supplement to the
FFIEC 002 that collects information on
assets and liabilities of any non-U.S.
branch that is managed or controlled by
a U.S. branch or agency of the foreign
bank. A non-U.S. branch is managed or
controlled by a U.S. branch or agency if
a majority of the responsibility for
business decisions, including but not
limited to decisions with regard to
lending or asset management or funding
or liability management, or the
responsibility for recordkeeping with
respect to 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. 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

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Federal Register / Vol. 84, No. 31 / Thursday, February 14, 2019 / Notices

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.
C. FFIEC 030 and 030S
The agencies propose to extend for
three years, with revision, the FFIEC
030 and FFIEC 030S reports.
Report Title: Foreign Branch Report of
Condition.
Form Numbers: FFIEC 030 and FFIEC
030S.
Frequency of Response: Annually,
and quarterly for significant branches.
Affected Public: Business or other for
profit.
OCC
OMB Number: 1557–0099.
Estimated Number of Respondents:
199 annual branch respondents (FFIEC
030); 57 quarterly branch respondents
(FFIEC 030); 30 annual branch
respondents (FFIEC 030S).
Estimated Average Time per
Response: 3.4 burden hours (FFIEC
030); 0.5 burden hours (FFIEC 030S).
Estimated Total Annual Burden:
1,467 burden hours.
Board
OMB Number: 7100–0071.
Estimated Number of Respondents: 14
annual branch respondents (FFIEC 030);
24 quarterly branch respondents (FFIEC
030); 11 annual branch respondents
(FFIEC 030S).
Estimated Average Time per
Response: 3.4 burden hours (FFIEC
030); 0.5 burden hours (FFIEC 030S).
Estimated Total Annual Burden: 380
burden hours.
FDIC

1828 (FDIC). This information collection
is given confidential treatment under 5
U.S.C. 552(b)(4) and (8).
Abstract
The FFIEC 030 collects asset and
liability information for foreign
branches of insured U.S. banks and
insured U.S. savings associations (U.S.
depository institutions) and is required
for regulatory and supervisory purposes.
The information is used to analyze the
foreign operations of U.S. institutions.
All foreign branches of U.S. institutions
regardless of charter type file this report
as provided in the instructions to the
FFIEC 030 and FFIEC 030S.
A U.S. depository institution
generally must file a separate report for
each foreign branch, but in some cases
may consolidate filing for multiple
foreign branches in the same country, as
described below. A branch with either
total assets of at least $2 billion or
commitments to purchase foreign
currencies and U.S. dollar exchange of
at least $5 billion as of the end of a
calendar quarter is considered a
‘‘significant branch’’ and an FFIEC 030
report is required to be filed quarterly.
A U.S. depository institution with a
foreign branch having total assets in
excess of $250 million that does not
meet either of the criteria to file
quarterly must file the entire FFIEC 030
report for this foreign branch on an
annual basis as of December 31.
A U.S. depository institution with a
foreign branch having total assets of $50
million or more, but less than or equal
to $250 million that does not meet the
criteria to file the FFIEC 030 report must
file the FFIEC 030S report for this
foreign branch on an annual basis as of
December 31. A U.S. depository
institution with a foreign branch having
total assets of less than $50 million is
exempt from filing the FFIEC 030 and
030S reports.

OMB Number: 3064–0011.
Estimated Number of Respondents: 8
annual branch respondents (FFIEC 030);
1 quarterly branch respondent (FFIEC
030); 8 annual branch respondents
(FFIEC 030S).
Estimated Average Time per
Response: 3.4 burden hours (FFIEC
030); 0.5 burden hours (FFIEC 030S).
Estimated Total Annual Burden: 45
burden hours.
Type of Review: Extension and
revision of currently approved
collections.

D. FFIEC 101

General Description of Reports

OMB Control No.: 1557–0239.
Estimated Number of Respondents: 20
national banks and federal savings
associations.

This information collection is
mandatory: 12 U.S.C. 602 (Board); 12
U.S.C. 161 and 602 (OCC); and 12 U.S.C.

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The agencies propose to extend for
three years, with revision, the FFIEC
101 report.
Report Title: Risk-Based Capital
Reporting for Institutions Subject to the
Advanced Capital Adequacy
Framework.
Form Number: FFIEC 101.
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.
OCC

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Estimated Time per Response: 674
burden hours per quarter to file.
Estimated Total Annual Burden:
53,920 burden hours to file.
Board
OMB Control No.: 7100–0319.
Estimated Number of Respondents: 6
state member banks; 16 bank holding
companies and savings and loan
holding companies; and 6 intermediate
holding companies.
Estimated Time per Response: 674
burden hours per quarter for state
member banks to file, 677 burden hours
per quarter for bank holding companies
and savings and loan holding
companies to file; and 3 burden hours
per quarter for intermediate holding
companies to file.
Estimated Total Annual Burden:
16,176 burden hours for state member
banks to file; 43,328 burden hours for
bank holding companies and savings
and loan holding companies to file; and
72 burden hours for intermediate
holding companies to file.
FDIC
OMB Control No.: 3064–0159.
Estimated Number of Respondents: 2
insured state nonmember banks and
state savings associations.
Estimated Time per Response: 674
burden hours per quarter to file.
Estimated Total Annual Burden:
5,392 burden hours to file.
Type of Review: Extension and
revision of currently approved
collections.
General Description of Reports
Each advanced approaches
institution 14 is required to report
quarterly regulatory capital data on the
FFIEC 101. The FFIEC 101 information
collection is mandatory for advanced
approaches institutions: 12 U.S.C. 161
(national banks), 12 U.S.C. 324 (state
member banks), 12 U.S.C. 1844(c) (bank
holding companies), 12 U.S.C. 1467a(b)
(savings and loan holding companies),
12 U.S.C. 1817 (insured state
nonmember commercial and savings
banks), 12 U.S.C. 1464 (savings
associations), and 12 U.S.C. 1844(c),
3106, and 3108 (intermediate holding
companies). Certain data items in this
information collection are given
confidential treatment under 5 U.S.C.
552(b)(4) and (8).
Abstract
The agencies use data reported in the
FFIEC 101 to assess and monitor the
levels and components of each reporting
14 See 12 CFR 3.100(b) (OCC); 12 CFR 217.100(b)
(Board); 12 CFR 324.100(b) (FDIC).

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Federal Register / Vol. 84, No. 31 / Thursday, February 14, 2019 / Notices
entity’s capital requirements and the
adequacy of the entity’s capital under
the Advanced Capital Adequacy
Framework; 15 to evaluate the impact of
the Advanced Capital Adequacy
Framework on individual reporting
entities and on an industry-wide basis
and its competitive implications; and to
supplement on-site examination
processes. The reporting schedules also
assist advanced approaches institutions
in understanding expectations relating
to the system development necessary for
implementation and validation of the
Advanced Capital Adequacy
Framework. Submitted data that are
released publicly will also provide other
interested parties with information
about advanced approaches institutions’
regulatory capital.
Current Actions
I. Introduction
In response to the new credit losses
standard, key elements of which were
outlined above in Section A of
‘‘Supplementary Information, I.
Background,’’ the agencies reviewed the
existing FFIEC reports to determine
which reports may be affected by ASU
2016–13. As a result, on September 28,
2018, the agencies requested comment
for 60 days on a proposal to revise and
extend the following FFIEC reports: (1)
Call Reports (FFIEC 031, FFIEC 041, and
FFIEC 051), (2) FFIEC 002 and FFIEC
002S, (3) FFIEC 030 and FFIEC 030S,
and (4) FFIEC 101.16
The agencies also reviewed the
existing FFIEC reports to determine
which reports may be affected by
EGRRCPA. As a result, additional
revisions were proposed for the Call
Reports (FFIEC 031, FFIEC 041, and
FFIEC 051) and the FFIEC 101.
The comment period for the
September 2018 notice ended on
November 27, 2018. The agencies
received comments on the proposals
covered in the notice from two entities,
a bankers’ association and a bank. The
commenters recommended
clarifications to the language used in the
notice and associated reporting
instructions, as well as clarifying edits
to the proposed revised reporting forms.
The agencies also reevaluated the
proposed portfolio categories for which
disaggregated allowance information
would begin to be reported by
institutions after adoption of ASU 2016–
13 for held-to-maturity (HTM) debt
15 12 CFR part 3, subpart E (OCC); 12 CFR part
217, subpart E (Board); 12 CFR part 324, subpart E
(FDIC).
16 See 83 FR 49160 for a detailed description of
the proposed revisions resulting from both ASU
2016–13 and EGRRCPA.

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securities on Schedule RI–C, Part II, on
the FFIEC 031 and FFIEC 041. The
agencies determined that separate
reporting of allowances on HTM
mortgage-backed securities issued or
guaranteed by U.S. government agencies
or sponsored agencies and other HTM
mortgage-backed securities, which had
been proposed in the September 2018
notice, is not needed because, at
present, the former category of
mortgage-backed securities would likely
have zero expected credit losses. As a
result, the agencies propose to combine
these portfolio categories and collect
only one data item, rather than two data
items, for the total allowances on an
institution’s HTM mortgage-backed
securities.
In addition, in December 2018, the
agencies approved a final rule amending
their capital rule to address CECL.17 The
final rule included revised terminology
for the allowance balance eligible for
inclusion in regulatory capital.18 The
agencies plan to make a conforming
terminology revision for the reporting of
regulatory capital on Schedule RC–R.
After considering these comments, the
agencies will proceed with the revisions
proposed in the September 2018 notice
to the FFIEC 031, FFIEC 041, FFIEC 051,
FFIEC 002, FFIEC 002S, FFIEC 030,
FFIEC 030S, and FFIEC 101, as
originally proposed, with some
modification to the FFIEC 031 and
FFIEC 041, as noted above. The agencies
will incorporate appropriate clarifying
edits suggested by commenters in the
updated instruction books and report
forms. The agencies are now submitting
requests to OMB for review and
approval of the extension, with
revisions, of the following FFIEC
reports: (1) Call Reports (FFIEC 031,
FFIEC 041, and FFIEC 051), (2) FFIEC
030 and FFIEC 030S, and (3) FFIEC 101.
The Board is now submitting the FFIEC
002 and the FFIEC 002S to OMB for
review and approval of the extension,
with revisions, on behalf of the
agencies.

certain respondents. The specific
wording of the captions for the new or
revised Call Report data items discussed
in the September 2018 notice and the
numbering of these data items, as
identified in that notice, are subject to
change.
This notice also includes other
revisions to the Call Reports and the
FFIEC 101 resulting from two sections
of EGRRCPA, effective upon enactment
on May 24, 2018, that affect the
information reported in these reports
and for which the agencies submitted
emergency review requests to OMB that
OMB has approved.

IV. Timing
Subject to OMB approval, the
proposed revisions related to ASU
2016–13 would begin to take effect
March 31, 2019, for reports with
quarterly report dates, and December 31,
2019, for reports with an annual report
date, with later effective dates for

Dated: February 5, 2019.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the
Comptroller of the Currency.

17 The

final rule has been scheduled for
publication in the Federal Register on February 14,
2019.
18 The agencies’ final rule uses the term ‘‘adjusted
allowances for credit losses’’ for regulatory capital
purposes to distinguish such allowances from
allowances for credit losses for accounting
purposes.

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V. Request for Comment
Public comment is requested on all
aspects of this joint notice. Comment is
specifically invited on:
(a) Whether the proposed revisions to
the collections of information that are
the subject of this notice are necessary
for the proper performance of the
agencies’ functions, including whether
the information has practical utility;
(b) The accuracy of the agencies’
estimates of the burden of the
information collections as they are
proposed to be revised, including the
validity of the methodology and
assumptions used;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
information collections on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Comments submitted in response to
this joint notice will be shared among
the agencies. All comments will become
a matter of public record.

Board of Governors of the Federal Reserve
System, February 1, 2019.
Ann Misback,
Secretary of the Board.
Dated at Washington, DC, on February 1,
2019.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2019–02330 Filed 2–13–19; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P

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