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as MARAD–2020–0011 at http:// a summary of your submission that can Federal Financial Institutions www.regulations.gov. Interested parties be made available to the public. Examination Council (FFIEC), requested comment on the effect this action public comment for 60 days on a Privacy Act may have on U.S. vessel builders or proposal to revise and extend the businesses in the U.S. that use U.S.-flag In accordance with 5 U.S.C. 553(c), Consolidated Reports of Condition and vessels. If MARAD determines, in DOT solicits comments from the public Income (Call Reports) (FFIEC 031, accordance with 46 U.S.C. 12121 and to better inform its rulemaking process. FFIEC 041, and FFIEC 051) and the MARAD’s regulations at 46 CFR part DOT posts these comments, without Regulatory Capital Reporting for 388, that the issuance of the waiver will edit, to www.regulations.gov, as Institutions Subject to the Advanced have an unduly adverse effect on a U.S.- described in the system of records Capital Adequacy Framework (FFIEC vessel builder or a business that uses notice, DOT/ALL–14 FDMS, accessible 101), which are currently approved U.S.-flag vessels in that business, a through www.dot.gov/privacy. To collections of information. waiver will not be granted. Comments facilitate comment tracking and The comment period for the should refer to the vessel name, state the response, we encourage commenters to 2019 notice ended on 3, 2019. commenter’s interest in the waiver provide their name, or the name of their As described in the SUPPLEMENTARY application, and address the waiver organization; however, submission of INFORMATION section, after considering criteria given in section 388.4 of names is completely optional. Whether the comments received on the proposal, MARAD’s regulations at 46 CFR part or not commenters identify themselves, the agencies are proceeding with the 388. all timely comments will be fully proposed revisions to the reporting considered. If you wish to provide forms and instructions for the Call Public Participation comments containing proprietary or Reports and the FFIEC 101 (except for How do I submit comments? confidential information, please contact the reporting changes arising from the the agency for alternate submission proposed total loss absorbing capacity Please submit your comments, instructions. holdings rule that has not yet been including the attachments, following the finalized), but with certain instructions provided under the above Authority: 49 CFR 1.93(a), 46 U.S.C. modifications. In general, the heading entitled ADDRESSES. Be advised 55103, 46 U.S.C. 12121 modifications relate to the disclosure of that it may take a few hours or even *** an institution’s election of the days for your comment to be reflected Dated: , 2020. community bank leverage ratio on the docket. In addition, your By Order of the Maritime Administrator. framework, a change in the scope of the comments must be written in English. T. Mitchell Hudson, Jr., FFIEC 031 Call Report, and the We encourage you to provide concise Secretary, Maritime Administration. reporting of home equity lines of credit comments and you may attach [FR Doc. 2020–01308 Filed 1–24–20; 8:45 am] that convert from revolving to non- additional documents as necessary. BILLING CODE 4910–81–P revolving status. The reporting revisions There is no limit on the length of the that implement various changes to the attachments. agencies’ capital rule would take effect Where do I go to read public comments, DEPARTMENT OF THE TREASURY in the same quarters as the effective and find supporting information? dates of the capital rule changes, i.e., Office of the Comptroller of the Go to the docket online at http:// primarily as of the 31 and Currency www.regulations.gov, keyword search 30, 2020, report dates. Call Report MARAD–2020–0011 or visit the Docket revisions applicable to operating lease FEDERAL RESERVE SYSTEM Management Facility (see ADDRESSES for liabilities and home equity lines of hours of operation). We recommend that credit would take effect in the first FEDERAL DEPOSIT INSURANCE you periodically check the Docket for quarter of 2020 and 2021, respectively. CORPORATION new submissions and supporting In addition, the agencies are giving material. notice they are sending the collections Agency Information Collection to OMB for review. Activities; Submission for OMB Will my comments be made available to DATES: Comments must be submitted on Review; Comment Request the public? or before 26, 2020. Yes. Be aware that your entire AGENCY: Office of the Comptroller of the ADDRESSES: Interested parties are comment, including your personal Currency (OCC), Treasury; Board of invited to submit written comments to identifying information, will be made Governors of the Federal Reserve any or all of the agencies. All comments, publicly available. System (Board); and Federal Deposit which should refer to the ‘‘Call Report Insurance Corporation (FDIC). and FFIEC 101 Reporting Revisions,’’ May I submit comments confidentially? ACTION: Joint notice and request for will be shared among the agencies. If you wish to submit comments comment. OCC: You may submit comments, under a claim of confidentiality, you which should refer to ‘‘Call Report and should submit three copies of your SUMMARY: In accordance with the FFIEC 101 Reporting Revisions,’’ by any complete submission, including the requirements of the Paperwork of the following methods: information you claim to be confidential Reduction Act of 1995 (PRA), the OCC, • Email: [email protected]. business information, to the Department the Board, and the FDIC (the agencies) • Mail: Chief Counsel’s Office, Office of Transportation, Maritime may not conduct or sponsor, and the of the Comptroller of the Currency, Administration, Office of Legislation respondent is not required to respond Attention: 1557–0081 and 1557–0239, and Regulations, MAR–225, W24–220, to, an information collection unless it 400 7th Street SW, Suite 3E–218, 1200 New Jersey Avenue SE, displays a currently valid Office of Washington, DC 20219. Washington, DC 20590. Include a cover Management and Budget (OMB) control • Hand Delivery/Courier: 400 7th letter setting forth with specificity the number. On , 2019, the Street SW, Suite 3E–218, Washington, basis for any such claim and, if possible, agencies, under the auspices of the DC 20219.

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Instructions: You must include and FFIEC 101 Reporting Revisions’’ in Affairs, U.S. Office of Management and ‘‘OCC’’ as the agency name and ‘‘1557– the subject line of the message. Budget, New Executive Office Building, 0081 and 1557–0239’’ in your comment. • Fax: (202) 452–3819 or (202) 452– Room 10235, 725 17th Street NW, In general, the OCC will publish 3102. Washington, DC 20503; by fax to (202) comments on www.reginfo.gov without • Mail: Ann E. Misback, Secretary, 395–6974; or by email to oira_ change, including any business or Board of Governors of the Federal [email protected]. personal information provided, such as Reserve System, 20th Street and FOR FURTHER INFORMATION CONTACT: For name and address information, email Constitution Avenue NW, Washington, further information about the proposed addresses, or phone numbers. DC 20551. revisions to the information collections Comments received, including All public comments are available on discussed in this notice, please contact attachments and other supporting the Board’s website at https:// any of the agency staff whose names materials, are part of the public record www.federalreserve.gov/apps/foia/ appear below. In addition, copies of the and subject to public disclosure. Do not proposedregs.aspx as submitted, unless report forms for the Call Report and the include any information in your modified for technical reasons. FFIEC 101 can be obtained at the comment or supporting materials that Accordingly, your comments will not be FFIEC’s website (https://www.ffiec.gov/ you consider confidential or edited to remove any identifying or ffiec_report_forms.htm). inappropriate for public disclosure. contact information. Public comments OCC: Kevin Korzeniewski, Counsel, You may review comments and other may also be viewed electronically or in Chief Counsel’s Office, (202) 649–5490, related materials that pertain to these paper in Room 146, 1709 New York or for persons who are deaf or hearing information collections following the Avenue NW, Washington, DC 20006, impaired, TTY, (202) 649–5597. close of the 30-Day comment period for between 9:00 a.m. and 5:00 p.m. on Board: Nuha Elmaghrabi, Federal this notice by any of the following weekdays. For security reasons, the Reserve Board Clearance Officer, (202) methods: Board requires that visitors make an 452–3884, Office of the Chief Data • Viewing Comments Electronically: appointment to inspect comments. You Officer, Board of Governors of the Go to www.reginfo.gov. Click on the may do so by calling (202) 452–3684. Federal Reserve System, 20th and C ‘‘Information Collection Review’’ tab. Upon arrival, visitors will be required to Streets NW, Washington, DC 20551. Underneath the ‘‘Currently under present valid government-issued photo Telecommunications Device for the Deaf Review’’ section heading, from the drop- identification and to submit to security (TDD) users may call (202) 263–4869. down menu select ‘‘Department of screening in order to inspect and FDIC: Manuel E. Cabeza, Counsel, Treasury’’ and then click ‘‘submit.’’ photocopy comments. (202) 898–3767, Legal Division, Federal These information collections can be FDIC: You may submit comments, Deposit Insurance Corporation, 550 17th located by searching by OMB control which should refer to ‘‘Call Report and Street NW, Washington, DC 20429. number ‘‘1557–0081’’ or ‘‘1557–0239.’’ FFIEC 101 Reporting Revisions,’’ by any SUPPLEMENTARY INFORMATION: of the following methods: Upon finding the appropriate • Table of Contents information collection, click on the Agency Website: https:// related ‘‘ICR Reference Number.’’ On the www.fdic.gov/regulations/laws/federal/. I. Affected Reports next screen, select ‘‘View Supporting Follow the instructions for submitting A. Call Reports Statement and Other Documents’’ and comments on the FDIC’s website. B. FFIEC 101 • Federal eRulemaking Portal: II. Current Actions then click on the link to any comment https://www.regulations.gov. Follow the A. Overview listed at the bottom of the screen. B. Capital Simplifications Rule • instructions for submitting comments. For assistance in navigating • Email: [email protected]. 1. Background www.reginfo.gov, please contact the Include ‘‘Call Report and FFIEC 101 2. Proposed Revisions to Call Report Regulatory Information Service Center Reporting Revisions’’ in the subject line Schedule RC–R at (202) 482–7340. 3. Comments Received and Final Capital • of the message. Simplifications Rule Reporting Revisions Viewing Comments Personally: You • Mail: Manuel E. Cabeza, Counsel, may personally inspect comments at the C. Community Bank Leverage Ratio (CBLR) Attn: Comments, Room MB–3128, Rule OCC, 400 7th Street SW, Washington, Federal Deposit Insurance Corporation, 1. Background DC. For security reasons, the OCC 550 17th Street NW, Washington, DC 2. Proposed Revisions to Call Report requires that visitors make an 20429. Schedule RC–R appointment to inspect comments. You • Hand Delivery: Comments may be 3. Other Proposed Call Report Revisions may do so by calling (202) 649–6700 or, hand delivered to the guard station at Related to the CBLR for persons who are deaf or hearing the rear of the 550 17th Street Building 4. Comments Received and Final CBLR impaired, TTY, (202) 649–5597. Upon (located on F Street) on business days Rule Reporting Revisions D. Tailoring Rule arrival, visitors will be required to between 7:00 a.m. and 5:00 p.m. present valid government-issued photo • 1. Background Public Inspection: All comments 2. Proposed Revisions to Call Report identification and submit to security received will be posted without change Schedule RC–R, Part I screening in order to inspect comments. to https://www.fdic.gov/regulations/ 3. Proposed Revisions to the FFIEC 101 Board: You may submit comments, laws/federal/ including any personal 4. Comments Received and Final Tailoring which should refer to ‘‘Call Report and information provided. Paper copies of Rule Reporting Revisions FFIEC 101 Reporting Revisions,’’ by any public comments may be requested from a. Call Report Revisions of the following methods: the FDIC Public Information Center, b. FFIEC 101 Revisions • Agency Website: http:// 3501 North Fairfax Drive, Arlington, VA E. Revisions to the Supplementary www.federalreserve.gov. Follow the 22226, or by telephone at (877) 275– Leverage Ratio for Certain Central Bank Deposits of Custodial Banks instructions for submitting comments at: 3342 or (703) 562–2200. 1. Background http://www.federalreserve.gov/ Additionally, commenters may send a 2. Proposed Revisions to Call Report generalinfo/foia/ProposedRegs.cfm. copy of their comments to the OMB Schedule RC–R, Part I • Email: regs.comments@ desk officer for the agencies by mail to 3. Proposed Revisions to FFIEC 101 federalreserve.gov. Include ‘‘Call Report the Office of Information and Regulatory Schedule A

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4. Final Reporting Revisions Estimated Average Burden per Legal Basis and Need for Collections F. Standardized Approach for Counterparty Response: 41.24 burden hours per Credit Risk on Derivative Contracts quarter to file. The Call Report information 1. Background Estimated Total Annual Burden: collections are mandatory: 12 U.S.C. 161 2. Proposed Revisions to Call Report (for national banks), 12 U.S.C. 324 (for Schedule RC–R, Part II 188,549 burden hours to file. state member banks), 12 U.S.C. 1817 (for 3. Proposed Revisions to FFIEC 101 Board Schedule A, SLR Table 2 insured state nonmember commercial 4. Comments Received and Instructions for OMB Control No.: 7100–0036. and savings banks), and 12 U.S.C. 1464 Reporting Derivatives Estimated Number of Respondents: (for federal and state savings G. High Volatility Commercial Real Estate 779 state member banks. associations). At present, except for Estimated Average Burden per (HVCRE) Land Development Loans selected data items and text, these 1. Background Response: 44.45 burden hours per 2. Proposed Revisions to Call Report quarter to file. information collections are not given Schedule RC–R, Part II Estimated Total Annual Burden: confidential treatment. 3. Proposed Revisions to FFIEC 101 138,506 burden hours to file. Banks and savings associations Schedule G submit Call Report data to the agencies H. Operating Lease Liabilities FDIC I. Reporting Home Equity Lines of Credit each quarter for the agencies’ use in OMB Control No.: 3064–0052. monitoring the condition, performance, That Convert From Revolving to Non- Estimated Number of Respondents: Revolving Status and risk profile of individual 3,386 insured state nonmember banks 1. Proposed Instructional Clarification institutions and the industry as a whole. and state savings associations. 2. Comments Received and Final Reporting Call Report data serve a regulatory or Revisions Estimated Average Burden per III. Timing Response: 39.43 burden hours per public policy purpose by assisting the IV. Request for Comment quarter to file. agencies in fulfilling their shared missions of ensuring the safety and I. Affected Reports Estimated Total Annual Burden: 534,040 burden hours to file. soundness of financial institutions and All of the proposed changes discussed The estimated average burden hours the financial system and protecting below affect the Call Reports, while a collectively reflect the estimates for the consumer financial rights, as well as number of the changes also affect the FFIEC 051, the FFIEC 041, and the agency-specific missions affecting FFIEC 101. On , 2019, the FFIEC 031 reports for each agency. national and state-chartered institutions, Board separately proposed to make When the estimates are calculated by such as conducting monetary policy, revisions to the Consolidated Financial type of report across the agencies, the ensuring financial stability, and Statements for Holding Companies (FR estimated average burden hours per administering federal deposit insurance. Y–9C) 1 corresponding to those initially quarter are 36.70 (FFIEC 051), Call Reports are the source of the most proposed by the agencies on October 4, 50.11(FFIEC 041), and 95.42 (FFIEC current statistical data available for 2019.2 031). The estimated burden hours for identifying areas of focus for on-site and A. Call Reports the currently approved reports are 40.27 off-site examinations. Among other (FFIEC 051), 53.72 (FFIEC 041), and The agencies propose to extend for purposes, the agencies use Call Report three years, with revision, the FFIEC 95.60 (FFIEC 031), so the revisions data in evaluating institutions’ corporate 031, FFIEC 041, and FFIEC 051 Call proposed in this notice would represent applications, including interstate merger Reports. a reduction in estimated average burden and acquisition applications for which hours per quarter of 3.57 (FFIEC 051), Report Title: Consolidated Reports of the agencies are required by law to 3.61 (FFIEC 041), and 0.18 (FFIEC 031). Condition and Income (Call Report). determine whether the resulting The change in burden is predominantly Form Number: FFIEC 031 institution would control more than 10 (Consolidated Reports of Condition and due to changes associated with the percent of the total amount of deposits Income for a Bank with Domestic and community bank leverage ratio final of insured depository institutions in the Foreign Offices), FFIEC 041 rule. The reduction in average burden (Consolidated Reports of Condition and hours is significantly less for the FFIEC United States. Call Report data also are Income for a Bank with Domestic 031 than for the FFIEC 041 or the FFIEC used to calculate institutions’ deposit Offices Only), and FFIEC 051 051 because greater percentages of insurance assessments and national (Consolidated Reports of Condition and institutions that would be eligible to banks’ and federal savings associations’ Income for a Bank with Domestic report under the proposed community semiannual assessment fees. Offices Only and Total Assets Less Than bank leverage ratio framework currently B. FFIEC 101 $5 Billion). file the FFIEC 041 or the FFIEC 051 than Frequency of Response: Quarterly. the FFIEC 031.3 The estimated burden The agencies propose to extend for Affected Public: Business or other for- per response for the quarterly filings of three years, with revision, the FFIEC profit. the Call Report is an average that varies 101 report. Type of Review: Revision and by agency because of differences in the Report Title: Risk-Based Capital extension of currently approved composition of the institutions under collections. Reporting for Institutions Subject to the each agency’s supervision (e.g., size Advanced Capital Adequacy OCC distribution of institutions, types of Framework. activities in which they are engaged, OMB Control No.: 1557–0081. Form Number: FFIEC 101. Estimated Number of Respondents: and existence of foreign offices). 1,143 national banks and federal savings Type of Review: Extension and Frequency of Response: Quarterly. associations. revision of currently approved Affected Public: Business or other for- collections. profit. 1 See 84 FR 71414, December 27, 2019. Consolidated Financial Statements for Holding 3 For estimating burden hours, the agencies OCC: Companies (FR Y–9C), OMB Number 7100–0128. assumed 60 percent of eligible institutions would 2 84 FR 53227, October 4, 2019. use the framework. OMB Control No.: 1557–0239.

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Estimated Number of Respondents: 5 supplementary leverage ratio finalizing.9 The changes to the agencies’ national banks and federal savings information on the FFIEC 101. The regulatory capital rule included in their associations. FFIEC 101 information collections are October 2019 notice were the capital Estimated Time per Response: 674 mandatory for advanced approaches and simplifications rule, the community burden hours per quarter to file for Category III institutions: 12 U.S.C. 161 bank leverage ratio (CBLR) rule, the banks and federal savings associations. (national banks), 12 U.S.C. 324 (state proposed tailoring rule, the proposed Estimated Total Annual Burden: member banks), 12 U.S.C. 1844(c) (bank total loss absorbing capacity (TLAC) 13,480 burden hours to file. holding companies), 12 U.S.C. 1467a(b) holdings rule, the proposed rule for Board (savings and loan holding companies), supplementary leverage ratio (SLR) 12 U.S.C. 1817 (insured state non- revisions for certain central bank OMB Control No.: 7100–0319. member commercial and savings banks), deposits of custodial banks, the Estimated Number of Respondents: 4 12 U.S.C. 1464 (savings associations), proposed rule for the standardized state member banks; 4 bank holding and 12 U.S.C. 1844(c), 3106, and 3108 approach for counterparty credit risk companies and savings and loan (intermediate holding companies). (SA–CCR) on derivative contracts, and holding companies that complete Certain data items in this information the high volatility commercial real Supplementary Leverage Ratio (SLR) collection are given confidential estate (HVCRE) land development Tables 1 and 2 only; 9 other bank treatment under 5 U.S.C. 552(b)(4) and proposal. holding companies and savings and (8). The agencies also proposed a change loan holding companies; and 6 in the scope of the FFIEC 031 Call The agencies use data reported in the intermediate holding companies. Report; a change in the reporting of FFIEC 101 to assess and monitor the Estimated Time per Response: 674 construction, land development, and levels and components of each reporting burden hours per quarter to file for state other land loans with interest reserves entity’s applicable capital requirements member banks; 3 burden hours per in the Call Report; and Call Report and the adequacy of the entity’s capital quarter to file for bank holding instructional revisions for the reporting companies and savings and loan under the Advanced Capital Adequacy of operating lease liabilities and home holding companies that complete Framework 6 and the supplementary 7 equity lines of credit (HELOCs) that Supplementary Leverage Ratio (SLR) leverage ratio, as applicable; to convert from revolving to non-revolving Tables 1 and 2 only; 677 burden hours evaluate the impact of the Advanced status. per quarter to file for other bank holding Capital Adequacy Framework and the The comment period for the October companies and savings and loan supplementary leverage ratio, as 2019 notice ended on , 2019. holding companies; and 3 burden hours applicable, on individual reporting The agencies received comments on the per quarter to file for intermediate entities and on an industry-wide basis proposed reporting changes covered in holding companies. and its competitive implications; and to the notice from four entities: Three Estimated Total Annual Burden: supplement on-site examination bankers’ associations and one savings 10,784 burden hours for state member processes. The reporting schedules also association. These comments are banks to file; 48 burden hours for bank assist advanced approaches institutions addressed in the following sections of holding companies and savings and and Category III institutions in this notice. loan holding companies that complete understanding expectations relating to Except for the proposed TLAC Supplementary Leverage Ratio (SLR) the system development necessary for holdings rule, final rules have been Tables 1 and 2 only to file; 24,372 implementation and validation of the adopted for all of the regulatory capital burden hours for other bank holding Advanced Capital Adequacy Framework rulemakings addressed in the October companies and savings and loan and the supplementary leverage ratio, as 2019 notice. The capital-related holding companies to file; and 72 applicable. Submitted data that are reporting changes discussed in the burden hours for intermediate holding released publicly will also provide other October 2019 notice will be effective in companies to file. interested parties with information the same quarters as the effective dates about advanced approaches institutions’ of the various capital rules that have FDIC and Category III institutions’ regulatory been finalized (see Section III below). OMB Control No.: 3064–0159. capital. However, because the proposed TLAC Estimated Number of Respondents: 1 II. Current Actions holdings rule has not been finalized, at insured state nonmember bank and state this time the agencies are not savings association. A. Overview proceeding with the implementation of Estimated Time per Response: 674 the TLAC-related reporting changes burden hours per quarter to file. On October 4, 2019, the agencies proposed in the October 2019 notice. Estimated Total Annual Burden: proposed revisions to the Call Reports Once the proposed TLAC holdings rule 2,696 burden hours to file. and the FFIEC 101 that would is finalized, the agencies plan to issue Type of Review: Extension and implement various changes to the 8 a 30-day Federal Register notice revision of currently approved agencies’ regulatory capital rule that, pursuant to the PRA to implement the collections. as of that date, the agencies had associated reporting changes, which finalized or were considering Legal Basis and Need for Collections would address any comments received on the proposed changes. Each advanced approaches 6 12 CFR part 3, subpart E (OCC); 12 CFR part 217, After carefully considering the institution 4 is required to report subpart E (Board); 12 CFR part 324, subpart E comments received on the October 2019 quarterly regulatory capital data on the (FDIC). 7 notice, the agencies are adopting the FFIEC 101. Each Category III 12 CFR 3.10(c)(4) (OCC); 12 CFR 217.10(c)(4) (Board); 12 CFR 324.10(c)(4) (FDIC). reporting changes proposed in that institution 5 is required to report 8 12 CFR part 3 (OCC); 12 CFR part 217 (Board); notice (other than for TLAC) with 12 CFR part 324 (FDIC). While the agencies have modifications discussed in the 4 See 12 CFR 3.100(b) (OCC); 12 CFR 217.100(b) codified the capital rule in different parts of title 12 (Board); 12 CFR 324.100(b) (FDIC). of the Code of Federal Regulations, the internal following sections of this notice. 5 See 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12 structure of the sections within each agency’s rule CFR 324.2 (FDIC). is substantially similar. 9 84 FR 53227, October 4, 2019.

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B. Capital Simplifications Rule 031 and FFIEC 041 Call Reports, the Report would complete the column for agencies proposed in the October 2019 the set of calculations that incorporates 1. Background notice to require all advanced the effects of the capital simplifications On 22, 2019, the agencies approaches institutions to file the FFIEC rule; all advanced approaches published a final rule amending their 031 Call Report effective as of the March institutions that file this Call Report regulatory capital rule to make a number 31, 2020, report date.13 As a result, the would complete the column that does of burden-reducing changes to the agencies proposed to adjust the existing not reflect the effects of the capital capital rule (capital simplifications regulatory capital calculations reported simplifications rule. rule).10 The capital simplifications rule on Schedule RC–R, Part I, for the FFIEC Because advanced approaches had an effective date of 1, 2020. 041 Call Report, and also for the FFIEC institutions currently are not permitted However, the agencies subsequently 051 Call Report, to reflect the effects of to file the FFIEC 051 Call Report and, approved a final rule that permits non- the capital simplifications rule for non- as proposed in the October 2019 notice, advanced approaches banking advanced approaches institutions. For would not be permitted to file the FFIEC 11 organizations to implement the the FFIEC 031 Call Report, which is 041 Call Report, the FFIEC 041 and capital simplifications rule on January filed by the fewest number of FFIEC 051 Call Reports would include 12 1, 2020. As a result, non-advanced institutions, the agencies proposed to a single column for the capital approaches banking organizations have incorporate the two different sets of calculation in Schedule RC–R, Part I, the option to implement the capital regulatory capital calculations (one for that would be revised effective March simplifications rule on the revised non-advanced approaches institutions 31, 2020, to incorporate the effects of effective date of , 2020, or in and the other for advanced approaches the capital simplifications rule. For the the quarter beginning , 2020. institutions) in Schedule RC–R, Part I, , 2020, report date, non- The agencies proposed revisions to and, as mentioned above, require all advanced approaches institutions that Call Report Schedule RC–R, Regulatory advanced approaches institutions to file file the FFIEC 041 or FFIEC 051 Call Capital, in all three versions of the Call this version of the Call Report. Report and elect to adopt the capital Report to implement the associated In the October 2019 notice, the simplifications rule on January 1, 2020, changes to the agencies’ regulatory agencies proposed a number of revisions would complete the capital calculation capital rule effective as of the March 31, that would simplify the capital column in Schedule RC–R, Part I, as 2020, report date, consistent with the calculations on each version of revised for the capital simplifications final rule that effectively permits early Schedule RC–R, Part I, effective March rule. The agencies would provide adoption of the capital simplifications 31, 2020, and thereby reduce reporting instructions for non-advanced rule. burden. Because both non-advanced approaches institutions that file the 2. Proposed Revisions to Call Report approaches institutions and advanced FFIEC 041 or FFIEC 051 Call Report that Schedule RC–R approaches institutions file the FFIEC elect to wait to adopt the capital 031 Call Report, the FFIEC 031 Call simplifications rule on April 1, 2020, on The revisions in the capital how to complete Schedule RC–R, simplifications rule would make a Report would include two different sets of calculations (one that incorporates including the capital calculation number of changes to the calculation of column, for the March 31, 2020, report common equity tier 1 (CET1) capital, the effects of the capital simplifications rule and another that does not) in date in accordance with the capital rule additional tier 1 capital, and tier 2 in effect before the capital adjacent columns in the affected portion capital for non-advanced approaches simplifications rule’s revised effective of Schedule RC–R, Part I. An institution institutions that do not apply to date of January 1, 2020. Such non- would complete only the column for the advanced approaches institutions. Thus, advanced approaches institutions would set of calculations applicable to that the capital simplifications rule results in use these instructions on a one-time institution. For the March 31, 2020, different sets of calculations for these basis for the March 31, 2020, report date report date, non-advanced approaches tiers of regulatory capital for non- only. Beginning with the , 2020, institutions that file the FFIEC 031 Call advanced approaches institutions and report date, all non-advanced Report and elect to adopt the capital advanced approaches institutions. At approaches institutions that file the simplifications rule on January 1, 2020, present, the FFIEC 031 and the FFIEC FFIEC 041 or FFIEC 051 Call Report 041 Call Reports are completed by both would complete the column for the set would complete Schedule RC–R as non-advanced approaches institutions of calculations that incorporates the revised for the capital simplifications and advanced approaches institutions effects of the capital simplifications rule. while only non-advanced approaches rule. Non-advanced approaches In connection with proposing that all institutions are eligible to file the FFIEC institutions that elect to wait to adopt advanced approaches institutions file 051 Call Report. To mitigate the the capital simplifications rule on April the FFIEC 031 Call Report in the complexity of revising existing 1, 2020, and all advanced approaches October 2019 notice, the agencies Schedule RC–R, Part I, Regulatory institutions would complete the column proposed to remove certain items from Capital Components and Ratios, to for the set of calculations that does not the FFIEC 041 Call Report that apply incorporate the different sets of reflect the effects of the capital only to advanced approaches regulatory capital calculations for non- simplifications rule (i.e., that reflects the institutions. Thus, for Schedule RC–R, advanced approaches institutions and capital calculation in effect for all Part I, in the FFIEC 041 Call Report, the advanced approaches institutions, and institutions before this revision). agencies proposed to remove items 30.b, to reflect the effects of the capital Beginning with the June 30, 2020, report 32.b, 34.b, 35.b, 40.b, 41 through 43 simplifications rule in both the FFIEC date, all non-advanced approaches (Column B only), 45.a, 45.b, and 46.b. institutions that file the FFIEC 031 Call The agencies proposed to renumber 10 84 FR 35234 (, 2019). items 30.a, 32.a, 34.a, 35.a, 40.a, and 11 Non-advanced approaches banking 13 As discussed in Sections II.B.3. and II.D.1., 46.a as items 30, 32, 34, 35, 40, and 46, organizations are institutions that do not meet the below, the agencies also proposed in their October criteria in 12 CFR 3.100(b) (OCC); 12 CFR 2019 notice to require all Category III institutions respectively. 217.100(b) (Board); or 12 CFR 324.100(b) (FDIC). to file the FFIEC 031 Call Report effective as of the In the capital simplifications rule, the 12 84 FR 61804 ( 13, 2019). March 31, 2020, report date. agencies increased the thresholds for

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including mortgage servicing assets capital. Any investments in excess of receive risk weights of either 300 (MSAs), temporary difference deferred the 25 percent limit would be deducted percent or 400 percent, depending on tax assets that could not be realized from regulatory capital using the whether the equity exposures are through net operating loss carrybacks corresponding deduction approach. publicly traded. (temporary difference DTAs),14 and Consistent with the current capital In order to implement these investments in the capital of rule, an institution must risk weight regulatory capital changes from a unconsolidated financial institutions for MSAs, temporary difference DTAs, and regulatory reporting perspective, the non-advanced approaches institutions. investments in the capital of agencies proposed in their October 2019 In addition, the agencies revised the unconsolidated financial institutions notice to make a number of revisions to capital calculation for minority interests that are not deducted. The agencies Schedule RC–R, Part I, for non- included in the various capital proposed revisions to allow institutions advanced approaches institutions categories for non-advanced approaches to enter values into the Column K— effective March 31, 2020. Specifically, institutions and to the calculation of the 250% risk weight on Schedule RC–R, in Schedule RC–R, Part I, in the FFIEC capital conservation buffer. Part II, in the FFIEC 051 Call Report, 041 and FFIEC 051 Call Reports, the The current regulatory capital which is currently shaded out, and agencies proposed to remove item 11 calculations in Call Report Schedule remove footnote two on the second page and modify item 13 to reflect the RC–R, which do not yet reflect the of Schedule RC–R, Part II, and the consolidation of all investments in revisions contained in the capital corresponding footnote on subsequent unconsolidated financial institutions simplifications rule, require that an pages of Schedule RC–R, Part II, in all into a single category and apply a single institution’s capital cannot include three versions of the Call Reports 25 percent of CET1 capital limit to these MSAs, certain temporary difference effective as of the March 31, 2020, investments. The agencies proposed to DTAs, and significant investments in report date to accommodate the capital modify items 14 and 15 to reflect the 25 the common stock of unconsolidated simplifications rule revisions to the risk percent of CET1 capital limit for MSAs financial institutions in an amount weight for MSAs and temporary and certain temporary difference DTAs, greater than 10 percent of CET1 capital, difference DTAs. Consistent with the respectively. The agencies also on an individual basis, and those three capital simplifications rule, non- proposed to remove item 16, which data items combined cannot comprise advanced approaches institutions will applies to the aggregate 15 percent more than 15 percent of CET1 capital. not be required to differentiate among limitation that was removed from the When the reporting of regulatory capital categories of investments in the capital capital rule for non-advanced calculations by non-advanced of unconsolidated financial institutions. approaches institutions. In the FFIEC approaches institutions in accordance The risk weight for such equity 031 Call Report, the agencies proposed with the capital simplifications rule exposures generally will be 100 percent, to create two columns for existing items provided the exposures qualify for this 11 through 19. Column A would be takes effect, this calculation would be 15 revised in Schedule RC–R, Part I, to risk weight. For non-advanced reported by non-advanced approaches require that only MSAs or temporary approaches institutions, the capital institutions that elect to adopt the difference DTAs in an amount greater simplifications rule eliminates the capital simplifications rule on January than 25 percent of CET1 capital, on an exclusion of significant investments in 1, 2020, in the March 2020 Call Report individual basis, could not be included the capital of unconsolidated financial and by all non-advanced approaches in a non-advanced approaches institutions in the form of common institutions beginning in the June 2020 stock from being eligible for a 100 Call Report using the definitions under institution’s regulatory capital. The 15 percent risk weight.16 The application of the capital simplifications rule. Column percent aggregate limit would be the 100 percent risk weight (i) requires A would not include items 11 or 16, and removed. In addition, the capital a banking organization to follow an items 13 through 15 would be simplifications rule combines the enumerated process for calculating designated as items 13.a through 15.a to current three categories of investments adjusted carrying value and (ii) reflect the new calculation in financial institutions (non-significant mandates the equity exposures that methodology. Column B would be investments in the capital of must be included in determining reported by advanced approaches unconsolidated financial institutions, whether the threshold has been reached. institutions and by non-advanced significant investments in the capital of Equity exposures that do not qualify for approaches institutions that elect to unconsolidated financial institutions a preferential risk weight will generally wait to adopt the capital simplifications that are in the form of common stock, rule on April 1, 2020, in the March 2020 and significant investments in the 15 12 CFR 3.52 and .53 (OCC); 12 CFR 217.52 and Call Report and only by advanced capital of unconsolidated financial .53 (Board); 12 CFR 324.52 and .53 (FDIC). Note that approaches institutions beginning in the institutions that are not in the form of for purposes of calculating the 10 percent June 2020 Call Report using the existing common stock) into a single category, nonsignificant equity bucket, the capital rule excludes equity exposures that are assigned a risk definitions. Existing items 13 through investments in the capital of weight of zero percent and 20 percent, and 15 would be designated as items 13.b unconsolidated financial institutions, community development equity exposures and the through 15.b to reflect continued use of and applies a limit of 25 percent of effective portion of hedge pairs, both of which are the existing calculation methodology. CET1 capital on the amount of these assigned a 100 percent risk weight. In addition, the 10 percent non-significant bucket excludes equity The agencies did not propose any investments that can be included in exposures to an investment firm that would not changes to the form to incorporate the meet the definition of traditional securitization minority interest revisions. However, 14 The agencies note that An Act to provide for were it not for the application of criterion 8 of the the agencies proposed to modify the reconciliation pursuant to titles II and V of the definition of traditional securitization, and has concurrent resolution on the budget for fiscal year greater than immaterial leverage. instructions for the existing minority 2018, Public Law 115–97 (originally introduced as 16 Equity exposures that exceed, in the aggregate, interest items in all versions of the Call the Tax Cuts and Jobs Act), enacted , 10 percent of a non-advanced approaches banking Report to reflect the ability of non- 2017, eliminated the concept of net operating loss organization’s total capital would then be assigned advanced approaches institutions to use carrybacks for U.S. federal income tax purposes, a risk weight based upon the approaches available although the concept may still exist in particular in sections 52 and 53 of the capital rule. 12 CFR the revised method under the capital jurisdictions for state or foreign income tax 3.52 and .53 (OCC); 12 CFR 217.52 and .53 (Board); simplifications rule to calculate purposes. 12 CFR 324.52 and .53 (FDIC). minority interest in existing items 4, 22,

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and 29 (CET1, additional tier 1, and tier reporting form. The benefit of a simple, address the application of the CBLR 2 minority interest, respectively). straightforward Part I of Schedule RC– framework to the FDIC’s deposit R in the FFIEC 041 Call Report that insurance assessment system in 3. Comments Received and Final Capital would be applicable only to the more accordance with the CBLR assessments Simplifications Rule Reporting than 1,400 non-advanced approaches final rule, but no revisions would be Revisions institutions is expected to offset the made to the data items in this schedule. Two commenters opposed the impact on the small group of less than Under the CBLR final rule, banking agencies’ proposal to require all 20 advanced approaches institutions organizations that have less than $10 advanced approaches institutions and that currently file the FFIEC 041 Call billion in total consolidated assets, meet Category III institutions to file the FFIEC Report of having to migrate to the FFIEC risk-based qualifying criteria, and have 031 Call Report because this 031 Call Report when the capital a leverage ratio of greater than 9 percent requirement could impact the reporting simplifications rule takes effect. Thus, are eligible to opt into the CBLR burden of numerous small depository the agencies are not adopting the framework. A banking organization that institution subsidiaries of holding commenters’ recommendation to permit opts into the CBLR framework, companies that are advanced advanced approaches institutions maintains a leverage ratio of greater than approaches and Category III institutions. currently eligible to file the FFIEC 041 9 percent, and meets the other The agencies agree with the commenters to continue to file this version of the qualifying criteria will not be subject to with respect to Category III institutions, Call Report. other risk-based and leverage capital and therefore they will allow such In addition, as a consequence of the requirements and, in the case of an institutions that are not otherwise technical amendments that the capital insured depository institution (IDI), is required to file the FFIEC 031 Call simplifications rule made to the considered to have met the well Report to file the FFIEC 041 Call Report. agencies’ capital rule effective October capitalized capital ratio requirements To do so, the agencies will retain three 1, 2019, the agencies are clarifying when for purposes of the agencies’ prompt existing data items for reporting an institution must report the amount of corrective action framework. supplementary leverage ratio distributions and discretionary bonus Under the CBLR final rule, a bank or information and countercyclical capital payments in Schedule RC–R, Part I, item savings association (bank) that opts into buffer information in the FFIEC 041 Call 48 (which would be renumbered as item the CBLR framework (CBLR bank) may Report for use by Category III 54). The agencies are clarifying the opt out of the CBLR framework at any institutions. Specifically, the agencies instructions for renumbered item 54 to time, without restriction, by reverting to will retain items 45.a and 45.b explain that an institution must report the generally applicable capital (renumbered as items 55.a and 55.b) in the amount of distributions and requirements in the agencies’ capital the FFIEC 041 to collect supplementary discretionary bonus payments made rule 19 and reporting its regulatory leverage ratio information from during the calendar quarter ending on capital information in Call Report institutions with domestic offices only the report date if the amount of its Schedule RC–R, ‘‘Regulatory Capital,’’ and total assets less than $100 billion capital conservation buffer that it Parts I and II, at the time of opting out. that are subsidiaries of banking reported for the previous calendar As described in the CBLR final rule, organizations subject to Category III quarter-end report date was less than its a banking organization that no longer capital standards. Additionally, the applicable required buffer percentage on meets the qualifying criteria for the agencies will retain item 46.b that previous calendar quarter-end CBLR framework will be required (renumbered as item 52.b) in the FFIEC report date. This change will enhance within two consecutive calendar 041 to collect countercyclical capital the agencies’ ability to monitor quarters (grace period) either to once buffer information from Category III compliance with the limitations on again satisfy the qualifying criteria or institutions. distributions and discretionary bonus demonstrate compliance with the In proposing to require all advanced payments. Institutions must comply generally applicable capital approaches institutions to file the FFIEC with this instructional clarification requirements. During the grace period, 031 Call Report (including those beginning with the March 31, 2020, the bank would continue to be treated advanced approaches institutions that report date. as a CBLR bank and would be required currently file the FFIEC 041 Call Report) to report its leverage ratio and related in conjunction with the implementation C. Community Bank Leverage Ratio Rule components in Call Report Schedule of the capital simplifications rule, the 1. Background RC–R, Part I, in the manner described in agencies sought to retain a streamlined 20 In November 2019, the agencies this notice. A CBLR bank that ceases and straightforward Part I of Schedule published a final rule to provide a to meet the qualifying criteria as a result RC–R for the more than 1,400 non- simplified alternative measure of capital of a business combination (e.g., a advanced approaches institutions that adequacy, the community bank leverage merger) would receive no grace period, filed the FFIEC 041 Call Report (based ratio (CBLR), for qualifying community on data as of 30, 2019). 19 banking organizations with less than 12 CFR part 3 (OCC); 12 CFR part 217 (Board); When the capital simplifications rule 12 CFR part 324 (FDIC). $10 billion in total consolidated assets takes effect in the first quarter of 2020, 20 For example, if the banking organization (CBLR final rule).17 allowing advanced approaches electing the CBLR no longer meets one of the In addition, the FDIC recently qualifying criteria as of , and still does institutions currently filing the FFIEC approved a final rule regarding the not meet the criteria as of the end of that quarter, 041 Call Report to continue to do so, application of the CBLR framework to the grace period for such a banking organization will begin as of the end of the quarter ending March rather than requiring them to begin the deposit insurance assessment filing the FFIEC 031 Call Report as had 31. The banking organization may continue to use system (CBLR assessments final rule).18 the community bank leverage ratio framework as of been proposed, would subject all Certain clarifications would be made to June 30, but will need to comply fully with the institutions filing the FFIEC 041 to the the Schedule RC–O instructions to generally applicable rule (including the associated complexity of the same dual column reporting requirements) as of , unless the banking organization once again meets all structure for items 11 through 19 of 17 84 FR 61776 (, 2019). qualifying criteria of the community bank leverage Schedule RC–R, Part I, that is discussed 18 84 FR 66833 (, 2019). See also FDIC ratio framework, including a leverage ratio of above in the context of the FFIEC 031 Press Release 80–2019, dated , 2019. greater than 9 percent, by that date.

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and would immediately become subject would apply to all institutions (as the purposes of the CBLR framework if the to the generally applicable capital community bank leverage ratio for percentage reported in Column B is requirements. Similarly, a CBLR bank qualifying institutions or the tier 1 greater than 5 percent. that fails to maintain a leverage ratio leverage ratio for all other institutions). In proposed items 34.a through 34.d, greater than 8 percent would not be As provided in the CBLR final rule, a a CBLR bank would report information permitted to use the grace period and CBLR bank will need to satisfy certain related to commitments, other off- would immediately become subject to qualifying criteria in order to be eligible balance sheet exposures, and sold credit the generally applicable capital to opt into the CBLR framework. The derivatives. requirements. proposed items identified below would In proposed item 34.a, a CBLR bank collect information necessary to ensure would report the unused portion of 2. Proposed Revisions to Call Report that a bank continuously meets the conditionally cancelable commitments. Schedule RC–R qualifying criteria for using the CBLR This amount would be the amount of all In the October 2019 notice, the framework. unused commitments less the amount of agencies proposed reporting revisions to Specifically, a CBLR bank is a bank unconditionally cancelable the Call Reports for banks that qualify that is not an advanced approaches commitments, as discussed in the for and opt into the CBLR framework, institution and meets the following planned CBLR final rule and defined in consistent with the CBLR final rule. The qualifying criteria: the agencies’ capital rule.22 This item • agencies also proposed in the October A leverage ratio of greater than 9 would be calculated consistent with the 2019 notice that the reporting changes percent; • sum of Schedule RC–R, Part II, items to the Call Reports to implement the Total consolidated assets of less 18.a and 18.b, Column A. CBLR framework would take effect in than $10 billion; • In proposed item 34.b, a CBLR bank the same quarter as the effective date of Total trading assets and trading would report total securities lent and the final rule adopting the CBLR liabilities of 5 percent or less of total borrowed, which would be the sum of framework. consolidated assets; and • Schedule RC–L, items 6.a and 6.b. As provided in the CBLR final rule, Total off-balance sheet exposures In proposed item 34.c, a CBLR bank the numerator of the community bank (excluding derivatives other than sold would report the sum of certain other leverage ratio will be tier 1 capital, credit derivatives and unconditionally off-balance sheet exposures and sold cancelable commitments) of 25 percent which is currently reported in Schedule credit derivatives. Specifically, a CBLR or less of total consolidated assets.21 RC–R, Part I, item 26. Therefore, the bank would report the sum of self- Accordingly, the agencies proposed to agencies are not proposing any changes liquidating, trade-related contingent collect the items described below for related to the numerator of the items that arise from the movement of community bank leverage ratio community bank leverage ratio. goods; transaction-related contingent reporting purposes. As provided in the CBLR final rule, items (performance bonds, bid bonds, the denominator of the community bank In proposed item 32 of Schedule RC– R, Part I, a CBLR bank would report warranties, and performance standby leverage ratio will be average total letters of credit); sold credit protection consolidated assets. Specifically, total assets, as reported in Call Report Schedule RC, item 12. in the form of guarantees and credit average total consolidated assets would derivatives; credit-enhancing be calculated in accordance with the In proposed item 33, a CBLR bank would report the sum of trading assets representations and warranties; existing reporting instructions for financial standby letters of credit; Schedule RC–R, Part I, items 36 through from Schedule RC, item 5, and trading forward agreements that are not 39. The agencies did not propose any liabilities from Schedule RC, item 15, in derivative contracts; and off-balance substantive changes related to the Column A. The bank would also report sheet securitizations. A CBLR bank denominator of the community bank that sum divided by total assets from would not include derivatives that are leverage ratio. However, the agencies are Schedule RC, item 12, and expressed as not sold credit derivatives, such as proposing to move existing items 36 a percentage in Column B. As provided foreign exchange swaps and interest rate through 39 of Schedule RC–R, Part I, in the CBLR final rule, trading assets and trading liabilities would be added swaps, in proposed item 34.c. and renumber them as items 27 through In proposed item 34.d, a CBLR bank 30 of Schedule RC–R, Part I, to together, not netted, for purposes of this calculation. Also as discussed in the would report the sum of proposed items consolidate all of the community-bank- 34.a through 34.c in Column A. The leverage-ratio-related capital items CBLR final rule, a bank would not meet the definition of a qualifying bank would also report that sum earlier in Schedule RC–R, Part I. divided by total assets from Schedule As provided in the CBLR final rule, a community banking organization for RC, item 12, and expressed as a CBLR bank will calculate its community percentage in Column B. As discussed bank leverage ratio by dividing tier 1 21 Under the CBLR final rule, the agencies have in the planned CBLR final rule, a bank capital by average total consolidated reserved the authority to disallow the use of the CBLR framework by a depository institution or would not be eligible to opt into the assets (as adjusted), and the community depository institution holding company based on CBLR framework if this percentage is bank leverage ratio would be reported as the risk profile of the banking organization. This authority is reserved under the general reservation greater than 25 percent. a percentage, rounded to four decimal In proposed item 35, a CBLR bank places. Since this calculation is of authority included in the capital rule, in which the CBLR framework would be codified. See 12 CFR would report the total of essentially identical to the existing 3.1(d) (OCC); 12 CFR 217.1(d) (Board); and 12 CFR unconditionally cancellable calculation of the tier 1 leverage ratio in 324.1(d) (FDIC). In addition, for purposes of the capital rule and section 201 of the Economic commitments, which would be Schedule RC–R, Part I, item 44, the calculated consistent with the agencies are not proposing a separate Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) (Pub. L. 115–174, 132 instructions for existing Schedule RC–R, item for the community bank leverage Stat. 1296 (2018)), the agencies have reserved the Part II, item 19. This item is not used ratio in Schedule RC–R, Part I. Instead, authority to take action under other provisions of specifically to calculate a bank’s the agencies proposed to move the tier law, including action to address unsafe or unsound practices or conditions, deficient capital levels, or 1 leverage ratio from item 44 of Part I violations of law or regulation. See 12 CFR 3.1(b) 22 See definition of ‘‘unconditionally cancellable’’ and renumber it as item 31, and rename (OCC); 12 CFR 217.1(b) (Board); and 12 CFR in 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12 CFR the item the Leverage Ratio, as this ratio 324.1(b) (FDIC). 324.2 (FDIC).

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eligibility for the CBLR framework. maturity debt securities, and other framework would be required to report However, the agencies are collecting financial assets measured at amortized all data items in Schedule RC–R, Part I, this information to identify any bank cost, as currently calculated and except for items 32 through 38. using the CBLR framework that may reported in Schedule RC–R, Part II, 3. Other Proposed Call Report Revisions have significant or excessive Memorandum items 4.a through 4.c. Related to the CBLR concentrations in unconditionally The amount of the ATRR, if any, is cancellable commitments that would necessary to calculate capital and While not specifically part of the warrant the agencies’ use of the surplus and corresponding limits in a CBLR final rule, the agencies currently reservation of authority in their capital number of the OCC’s regulations, collect information in Call Report rule to direct an otherwise-eligible including investment securities limits Schedule RC–C, Part I, ‘‘Loans and CBLR bank to report its regulatory (12 CFR part 1) and lending limits (12 Leases,’’ Memorandum item 13, from capital using the generally applicable CFR part 32). After an institution adopts institutions that have a significant capital requirements.23 ASU 2016–13, allowances for credit amount of construction, land In proposed item 36, a CBLR bank losses on purchased credit-deteriorated development, and other land loans with would report the amount of investments assets similarly would affect the interest reserves in relation to their total in the capital instruments of an calculation of these limits. While these regulatory capital as reported as of the unconsolidated financial institution that limits apply directly to institutions previous calendar year-end report date. would qualify as tier 2 capital. Since the supervised by the OCC, a number of At present, total regulatory capital is CBLR framework does not have a total federal or state laws may apply the defined as total capital reported on capital requirement, a CBLR bank is OCC’s calculation of certain limits to Schedule RC–R, Part I, item 35 (FFIEC neither required to calculate tier 2 state-chartered institutions supervised 051) or item 35.a (FFIEC 031 or FFIEC capital nor make any deductions that by the FDIC or the Board. Therefore, the 041). While CBLR banks would no would be taken from tier 2 capital. agencies are proposing to retain this longer report their total capital in Therefore, if a CBLR bank has information for all CBLR banks. As Schedule RC–R, Part I, the agencies investments in the capital instruments CBLR banks would not complete believe it is still important to collect this of an unconsolidated financial Schedule RC–R, Part II, this information information from CBLR banks that have institution that would qualify as tier 2 would otherwise not be readily a significant amount of construction, capital of the CBLR bank under the available for the agencies to calculate land development, and other land loans generally applicable capital the relevant regulatory limits for these with interest reserves. Therefore, requirements (tier 2 qualifying institutions.24 effective March 31, 2021,25 the agencies instruments), and the CBLR bank’s total Because a CBLR bank would not be proposed to revise the reporting investments in the capital of subject to the generally applicable threshold for Schedule RC–C, Part I, unconsolidated financial institutions capital requirements, a CBLR bank Memorandum item 13, for all exceed 25 percent of its CET1 capital, would not need to complete any of the institutions to reference the sum of tier the CBLR bank is not required to deduct items in Schedule RC–R, Part I, after 1 capital as reported in Schedule RC–R, the tier 2 qualifying instruments. A proposed item 38, nor would the bank Part I, item 26, plus the allowance for CBLR bank is required to make a need to complete Schedule RC–R, Part loan and lease losses or the allowance deduction from CET1 capital or tier 1 II, Risk-Weighted Assets. for credit losses on loan and leases, as capital only if the sum of its In connection with moving the applicable, as reported in Schedule RC, investments in the capital of an leverage ratio calculations and inserting item 4.c. unconsolidated financial institution is items for the CBLR qualifying criteria in Schedule RC–R, Part I, existing items 27 4. Comments Received and Final CBLR in a form that would qualify as CET1 Rule Reporting Revisions capital or tier 1 capital instruments of through 35 of Schedule RC–R, Part I, the CBLR bank and the sum exceeds the will be renumbered as items 39 through Two commenters addressed certain 25 percent CET1 threshold. The 47. Existing items 40 through 43 will be aspects of the proposed CBLR reporting agencies believe it is important to renumbered as items 48 through 51, revisions. Aspects of the proposed CBLR continue collecting information on the while existing items 46 through 48 will reporting revisions on which no amount of investments in tier 2 be renumbered as items 52 through 54. comments were received, including the qualifying instruments as excessive For advanced approaches institutions proposed change in the reporting investments similarly could warrant the filing the FFIEC 031 Call Report, threshold for Schedule RC–C, Part I, agencies’ use of their reservation of existing items 45.a and 45.b for total Memorandum item 13, would be authority. leverage exposure and the implemented as proposed. In proposed item 37, a CBLR bank supplementary leverage ratio, One commenter supported ‘‘the would be required to report its allocated respectively, will be renumbered as proposed line item additions to RC–R, transfer risk reserve (ATRR), as items 55.a and 55.b. Part I reporting to support changes to currently calculated and reported in As proposed in the October 2019 the leverage ratio,’’ but the other Schedule RC–R, Part II, item 30. In notice, a CBLR bank would indicate that commenter recommended removing proposed items 38.a through 38.c, a it has elected to apply the CBLR CBLR bank that has adopted Accounting framework by completing Schedule RC– 25 For report dates during 2020, the reporting R, Part I, items 32 through 38. threshold for Schedule RC–C, Part I, Memorandum Standards Update (ASU) No. 2016–13 item 13, would be the total capital an institution on credit losses must report the amount Institutions not subject to the CBLR reported in Schedule RC–R, Part I, as of December of any allowances for credit losses on 31, 2019, which will predate the initial reporting purchased credit-deteriorated loans and 24 Institutions that are not CBLR banks would not under the CBLR framework in Schedule RC–R. The complete proposed items 37 and 38.a through 38.c, first year-end report date under the CBLR leases held for investment, held-to- but would continue to report any ATRR and any framework would be , 2020, which allowances for credit losses on purchased credit- would be the report date to which a CBLR bank 23 Other factors also may lead the agencies to deteriorated loans and leases held for investment, would refer in order to determine whether it would determine that the risk profile of an otherwise- held-to-maturity debt securities, and other financial need to complete Schedule RC–C, Part I, eligible CBLR bank would warrant the use of the assets measured at amortized cost in Schedule RC– Memorandum item 13, as of each quarter-end report reservation of authority. R, Part II. date during 2021.

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proposed items 35 through 38.c of Part an otherwise-eligible CBLR bank to comment suggesting that Part I be split I because the data to be reported are not report its regulatory capital using the into Parts 1, 2, and 3 with existing Part qualifying criteria under the CBLR generally applicable capital II then renumbered as Part 4. framework. Both commenters did not requirements. The allocated transfer risk In addition, the agencies acknowledge favor the proposal to move existing reserve and allowances for credit losses that, under the CBLR final rule, an items 36 through 39 of Schedule RC–R, on purchased credit-deteriorated assets, institution that is eligible to opt into the Part I, which are used to measure total which would be reported in proposed CBLR framework may choose to opt into assets for the leverage ratio, and existing items 37 and 38.a through 38.c, or out of this framework at any time and item 44, ‘‘Tier 1 leverage ratio,’’ from currently exist in Part II of Schedule for any reason. Accordingly, the their present locations in Part I of the RC–R, which a CBLR bank would no agencies see merit in a commenter’s schedule to an earlier position in Part I longer complete. The agencies use the recommendation that an institution where all of the CBLR-related items information reported in these data items should report its status as of the report would be reported and these five items in the calculation of regulatory limits on date regarding the use of the CBLR would be renumbered as items 27 investment securities and lending where framework. Therefore, the agencies through 31. One of the commenters relevant. propose to add a ‘‘yes/no’’ item 31.a to stated that, although this proposed The agencies also will retain the Schedule RC–R, Part I, after item 31, change in the presentation of Part I of proposed movement of the data items ‘‘Leverage ratio,’’ in which each Schedule RC–R would not affect the related to the leverage ratio to a position institution would report whether it has results of individual items in Part I, the immediately after the calculation of tier a CBLR framework election in effect as proposed new presentation could be 1 capital (designated items 27 through of the quarter-end report date. An confusing to end users of the schedule. 31 of Schedule RC–R, Part I, as it would institution would answer ‘‘yes’’ if it The second commenter expressed be revised) as well as the placement of qualifies for the CBLR framework (even concern about inserting the data items the proposed data items to be completed if it is within the grace period) and has for the CBLR framework within existing only by CBLR banks, including those elected to adopt the framework as of Schedule RC–R, Part I, rather than in a within the grace period (designated that report date. Otherwise, the separate version of the schedule as the items 32 through 38.c of Schedule RC– institution would answer ‘‘no.’’ agencies had originally proposed in R, Part I, as it would be revised). Captioning after the ‘‘yes/no’’ response April 2019, because the insertion of Because all institutions are subject to a to item 31.a would indicate which of the these data items was confusing and leverage ratio requirement, all subsequent data items in Schedule RC– could lead to reporting errors. Thus, this institutions must calculate and report R should be completed based on the commenter suggested that the agencies the ratio’s numerator, which is tier 1 response to item 31.a. This ‘‘yes/no’’ break the proposed revised structure of capital, and its denominator, which is response should assist an institution in Part I of Schedule RC–R into three based on average total assets. As a understanding which specific data items separate parts with existing Part II of consequence, items 1 through 31 of Part it should complete in the rest of Schedule RC–R becoming the fourth I would be applicable to and completed Schedule RC–R. The response also part of the schedule. In addition, this by all institutions. Moving the leverage should assist users of Schedule RC–R in commenter noted that an institution that ratio data items as proposed would understanding the regulatory capital is eligible to opt into the CBLR allow CBLR banks to avoid completing regime an institution is following as of framework may opt into and out of the the remainder of Schedule RC–R after the report date. The agencies are not framework at any time, and that there is item 38.c of Part I, which the agencies adopting a commenter’s a grace period for an institution that no believe will be less confusing for CBLR recommendation to add additional data longer meets the qualifying criteria for banks than having to complete the items relating to use of the CBLR, for the CBLR framework. During the grace leverage ratio items in their current example by differentiating between period, the institution continues to be location in Part I of the schedule, which banks that currently meet the CBLR treated as a CBLR bank. Because an is after numerous items that will not be qualifying criteria and those that are institution’s status, i.e., as a CBLR bank applicable to CBLR banks. within the grace period, as the agencies Furthermore, the agencies will modify or as subject to the generally applicable do not need this additional level of the formatting of Schedule RC–R, Part I, capital requirements, can change from detail in the Call Report. to better distinguish the data items that quarter to quarter, the commenter The agencies believe these should be completed only by CBLR recommended the addition of data items modifications to the format and banks and those that should be to Schedule RC–R for reporting the structure of Part I of Schedule RC–R will completed only by those institutions institution’s status with respect to the limit the burden on reporting applying the generally applicable CBLR framework. institutions and lessen possible The agencies have considered these capital requirements. This will be confusion, including for users of comments and will retain proposed accomplished by improving the Schedule RC–R and for those qualifying items 35 through 38.c for reporting by captioning before Schedule RC–R, Part I, community institutions that elect to CBLR banks in Schedule RC–R, Part I, item 32, which is the first data item to adopt the CBLR framework. Redlined as proposed for the reasons cited in the completed only by CBLR banks, and drafts of Call Report Schedule RC–R in October 2019 notice.26 When between items 38.c, which is the final all three versions of the Call Report as unconditionally cancellable data item only for CBLR banks, and item it is proposed to be revised, with the commitments or investments in the tier 39, which is the first data item modifications described in this Section 2 capital instruments of unconsolidated applicable only to other institutions II.C.4., will be available on the FFIEC’s financial institutions, as reported in subject to the generally applicable proposed items 35 and 36, reach capital requirements. The portion of Reporting Forms web page. excessive levels, this may warrant the Schedule RC–R, Part I, applicable only D. Tailoring Rule agencies’ use of the reservation of to CBLR banks also will be marked by authority in their capital rule to direct bordering. These modifications to the 1. Background formatting of Part I should functionally On , 2019, the agencies 26 See 84 FR 53234 (October 4, 2019). achieve an outcome similar to the published a final rule to revise the

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criteria for determining the applicability In addition, the agencies proposed in 2. Proposed Revisions to Call Report of regulatory capital and liquidity the October 2019 notice that all Schedule RC–R, Part I requirements for large U.S. banking institutions subject to Category I, II, or organizations and the U.S. intermediate III capital standards would be required In order to implement the holding companies of certain foreign to file the FFIEC 031 Call Report. While clarifications for institutions subject to banking organizations (tailoring final the agencies proposed to require all Category III capital standards, as 27 rule). advanced approaches institutions to file discussed above, the agencies proposed Under the tailoring final rule, the the FFIEC 031 Call Report in connection to require all Category III institutions to most stringent set of standards (Category file the FFIEC 031 Call Report and to with the capital simplifications rule (see I) applies to U.S. global systemically revise the caption for Schedule RC–R, Section II.B., above), the tailoring rules important banks (GSIBs). The second set Part I, item 45, ‘‘Advanced approaches would narrow the scope of institutions of standards (Category II) applies to institutions only: Supplementary calculating risk-weighted assets under banking organizations that are very large leverage ratio information,’’ on the the advanced approaches. In the or have significant international FFIEC 031 Call Report. Specifically, the October 2019 notice, the agencies stated activity, but are not GSIBs. Like agencies proposed to clarify that item 45 Category I, this category generally that they expected the revision in the (proposed to be renumbered as item 55) includes standards that are based on scope of advanced approaches applies to ‘‘advanced approaches and standards that reflect agreements institutions to have little, if any, impact Category III institutions’’ on the FFIEC reached by the Basel Committee on on current institutions, as all 031 report form. Item 45 would be Banking Supervision. The third set of institutions with total consolidated removed from the FFIEC 041 report standards (Category III) applies to assets of $100 billion or more or with form. The instructions for Schedule RC– banking organizations with $250 billion foreign offices already are required to R, Part I, item 45 (proposed to be or more in total consolidated assets that file the FFIEC 031, which generally renumbered as item 55), in the FFIEC do not meet the criteria for Category I aligns with the standards for Category I, 031–FFIEC 041 instruction book also or II. The third set of standards also II, and III institutions. However, the would be revised in the same manner. applies to banking organizations with agencies noted in the October 2019 The general instructions for Schedule total consolidated assets of $100 billion notice that, under the domestic RC–R, Part I, in the FFIEC 031–FFIEC or more, but less than $250 billion, that interagency tailoring and foreign 041 instruction book also would be meet or exceed other specified risk- interagency tailoring NPRs, institutions clarified to indicate that Category III based indicators. The fourth set of that are subsidiaries of institutions institutions are not required to calculate standards (Category IV) applies to subject to Category I, II, or III capital risk-weighted assets according to the banking organizations with total standards also are considered Category advanced approaches rule, but are consolidated assets of $100 billion or I, II, or III institutions. The tailoring subject to the supplementary leverage more that do not meet the thresholds for final rule maintains the application of ratio and countercyclical capital buffer. one of the other categories. the same category of capital standards to Under the tailoring final rule, 3. Proposed Revisions to the FFIEC 101 depository institution subsidiaries depository institution holding generally are subject to the same companies and their depository To implement the clarification for category of standards that apply at the institution subsidiaries. Thus, the institutions subject to Category III holding company level.28 proposed change in scope for the FFIEC capital standards, the agencies proposed Based on the proposed capital and 031 under the October 2019 notice to revise the instructions for the scope liquidity requirements that would apply meant that depository institutions of the FFIEC 101. Specifically, because to institutions subject to Category I, II, considered Category I, II, or III Category III institutions are not required III, or IV capital standards in the institutions, but not required to file the to calculate risk-weighted assets domestic interagency tailoring and FFIEC 031 Call Report at that time, according to the advanced approaches foreign interagency tailoring NPRs, the would have been required to begin filing rule, the FFIEC 101 instructions would agencies proposed in their October 2019 the FFIEC 031. be revised to clarify that top-tier notice to amend certain regulatory The agencies noted that modifying the Category III bank holding companies, reporting forms to clarify the reporting scope of the Call Report in this manner savings and loan holding companies, requirements for those institutions that would enable them to streamline and insured depository institutions, and would be subject to those proposed Schedule RC–R, Part I, of the FFIEC 041 all Category III U.S. intermediate rules. Specifically, the agencies holding companies, must complete proposed changes to Call Report report by removing data items that apply only to the limited number of FFIEC 101 Schedule A, SLR Tables 1 Schedule RC–R, Part I, Regulatory and 2, only and would not complete or Capital Components and Ratios, and institutions then considered advanced approaches institutions that were then file any other part of the FFIEC 101. In FFIEC 101 Schedule A, Advanced addition, any Category III banking Approaches Regulatory Capital, to also eligible to file the FFIEC 041 report and to any future institutions that organization that is a consolidated provide clarification for institutions subsidiary of a top-tier Category III bank would, absent this change in scope, be subject to Category III capital holding company, savings and loan 29 eligible to file the FFIEC 041 report. standards. holding company, U.S. intermediate holding company, or insured depository 27 84 FR 59230 (November 1, 2019). instructional clarifications are needed to reflect 28 However, standardized liquidity requirements institution would not complete or file capital requirements that would apply to apply only to depository institution subsidiaries any part of the FFIEC 101. Instead, with $10 billion or more in total consolidated assets institutions subject to Category I, II, or IV capital Category III subsidiary banking standards under the domestic interagency tailoring under Categories I through III, and such organizations that file Call Reports requirements do not apply to depository institution and foreign interagency tailoring NPRs. With the subsidiaries under Category IV. issuance of the tailoring final rule, the agencies would report SLR data in Call Report 29 In the October 2019 notice, the agencies stated continue to believe no such reporting form or Schedule RC–R, Part I, item 45 that they do not believe reporting form or instructional clarifications are needed. (proposed to be renumbered as item 55).

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All Category IV institutions would not approaches institutions, depository ‘‘publicly provides a summary table complete or file any part of the FFIEC institutions that are Category I and II specifically indicating the location(s) of 101. institutions are not eligible to file the all such disclosures.’’ 32 Thus, an FFIEC 051 Call Report. institution could satisfy the Table 13 4. Comments Received and Final disclosure requirement through the use Tailoring Rule Reporting Revisions b. FFIEC 101 Revisions of FFIEC 101 SLR Tables 1 and 2, the a. Call Report Revisions Two commenters recommended that location of which would be provided in Two commenters addressed the Category III institutions should not be the institution’s summary table. agencies’ proposal to require all required to file the FFIEC 101. Such Although the agencies recognize the institutions subject to Category I, II, or institutions are not required to calculate existence of overlaps between the SLR III capital standards to file the FFIEC risk-weighted assets according to the information in the FR Y–15, Table 13 of 031 Call Report. One commenter advanced approaches rule, but are the Pillar 3 disclosures, and SLR Tables observed that institutions that are subject to the supplementary leverage 1 and 2 of the FFIEC 101, the latter subsidiaries of Category I, II, and III ratio (SLR). Thus, the only portions of serves, or can serve, as the source for institutions, and therefore also the FFIEC 101 report applicable to some or all of the SLR information in considered Category I, II, and III Category III institutions are the other two. Therefore, the agencies institutions, will experience increases in Supplementary Leverage Ratio Tables 1 do not agree with the comments that overall reporting burden if they and 2. However, one commenter noted SLR Tables 1 and 2 in the FFIEC 101 currently file the FFIEC 041 Call Report, that depository institution subsidiaries duplicate other available information but now must file the FFIEC 031 Call of Category III institutions, which are and will retain these tables. Report. The other commenter explicitly themselves considered Category III In addition, one commenter suggested stated that the agencies should not institutions, are not required to that if the requirement to complete SLR expand the scope of the FFIEC 031 to complete these two tables in the FFIEC Tables 1 and 2 is retained for top-tier require subsidiaries of Category I, II, and 101 and instead report specified SLR Category III banking organizations, as III institutions that previously were data only in Call Report Schedule RC– proposed, ‘‘a change to Line 2.20 Tier 1 eligible to file the FFIEC 041 Call Report R, Part I. capital for Category III firms to account In support of their recommendation to to file the FFIEC 031 Call Report. This for Tier 1 capital calculation differences eliminate SLR data from the FFIEC 101, commenter recommended that the would be appropriate.’’ On the FFIEC these commenters asserted that holding agencies confirm that subsidiary 101 reporting form, the caption for Item companies that report detailed SLR depository institutions that currently 2.20 currently says, ‘‘Tier 1 capital (from information in the FFIEC 101 report file the FFIEC 041 or FFIEC 051 Call Schedule A, item 45).’’ The agencies duplicate information in the Board’s FR Report should continue to do so rather note that the existing instructions for Y–15.30 than ‘‘filing the more burdensome However, the instructions for Item 2.20 already state that an FFIEC 031.’’ the FR Y–15 state that ‘‘[i]f the banking institution ‘‘that does not complete As previously discussed in Section organization files the Regulatory Capital Schedule A, except for the SLR II.B.3., the agencies have reviewed these Reporting for Institutions Subject to the disclosures, must use the corresponding comments and are modifying the Advanced Capital Adequacy Framework item as reported on the institution’s proposed change in scope as it applies (FFIEC 101) for the same reporting Schedule RC–R of the Call Report or to Category III institutions not currently period, then’’12 data items in Schedule Schedule HC–R of the FR Y–9C, as required to file the FFIEC 031 Call A of the FR Y–15 ‘‘will be populated applicable.’’ Thus, the Item 2.20 Report. Accordingly, Category III automatically’’ from the corresponding instructions already address the institutions that have less than $100 data items reported in FFIEC 101 SLR commenter’s suggestion. However, the billion in total assets and have no Table 2. Furthermore, the FR Y–15 does agencies will modify the caption for foreign offices (as defined in the Call not collect data comparable to the data Item 2.20 to clarify the source for the Report instructions) would be eligible to reported in FFIEC 101 SLR Table 1, amount of Tier 1 capital to be reported file the FFIEC 041 Call Report and ‘‘Summary comparison of accounting in this item. assets and total leverage exposure.’’ would not be required to file the FFIEC E. Revisions to the Supplementary 031. Such institutions also would not be Both commenters also noted that Table 13 of the Pillar 3 disclosures 31 Leverage Ratio for Certain Central Bank eligible to file the FFIEC 051 Call Deposits of Custodial Banks Report. As previously mentioned, to requires certain institutions to disclose accommodate this modification to the the same SLR information as is reported 1. Background in FFIEC 101 SLR Tables 1 and 2. These originally proposed change in scope for On , 2019, the agencies commenters also cited these Pillar 3 Category III institutions, the agencies announced that they had finalized the disclosures as a reason for eliminating will retain existing SLR information proposed revisions to the SLR for the SLR Tables from the FFIEC 101. items 45.a and 45.b (proposed to be certain central bank deposits of banking However, the agencies’ capital rule renumbered as items 55.a and 55.b), as organizations predominantly engaged in provides that the management of an well as existing item 46.b for the custodial activities.33 The final rule, institution required to make the Pillar 3 countercyclical capital buffer (proposed which implements section 402 of the public disclosures may provide all of to be renumbered as item 56.b), in EGRRCPA, takes effect April 1, 2020. Schedule RC–R, Part I, in the FFIEC 041 the required disclosures in one place on In the October 2019 notice, the Call Report rather than removing these its public website ‘‘or may provide the agencies proposed changes to the three items from this report as had been disclosures in more than one public instructions for Call Report Schedule proposed. However, the agencies would financial report or other regulatory reports,’’ provided the institution require all Category I and II institutions, 32 See 12 CFR 3.172(c)(1) (OCC); 12 CFR including depository institution 217.172(c)(1) (Board); 12 CFR 324.172(c)(1) (FDIC). 30 Banking Organization Systemic Risk Report (FR 33 See the custodial bank SLR final rule attached subsidiaries of Category I and II Y–15), OMB No. 3064–0352. to OCC News Release 2019–135, Board Press institutions, to file the FFIEC 031 Call 31 See 12 CFR 3.173 (OCC); 12 CFR 217.173 Release, and FDIC Press Release 109–2019, all of Report as proposed. As advanced (Board); 12 CFR 324.173 (FDIC). which are dated November 19, 2019.

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RC–R and the addition of a new data compliance date of January 1, 2022 (i.e., in replacement cost and potential future item to both SLR Tables 1 and 2 in for the Call Report and the FFIEC 101 exposure (PFE) for purposes of FFIEC 101 Schedule A that would for the March 31, 2022, report date). calculating total leverage exposure implement the proposed changes to the The SA–CCR final rule replaces the under certain circumstances. In agencies’ capital rule. current exposure methodology (CEM) particular, this treatment applies to a with SA–CCR in the capital rule for clearing member banking organization’s 2. Proposed Revisions to Call Report advanced approaches institutions. The Schedule RC–R, Part I exposure from its client-facing final rule requires banking organizations derivative transactions. For such In the October 2019 notice, the subject to Category I and II standards exposures, a clearing member banking agencies proposed to modify the (Category I and II banking organizations) organization would use SA–CCR, as instructions for the calculation of the in the agencies’ tailoring final rule,35 total leverage exposure to enable an discussed in Section II.D. above, to use applied for risk-based capital purposes, institution that qualifies as a ‘‘custodial SA–CCR to calculate their standardized which permits recognition of both cash banking organization’’ to exclude total risk-weighted assets and permits and non-cash forms of margin in the deposits placed at a ‘‘qualifying central non-advanced approaches banking form of financial collateral received bank’’ from the total leverage exposure organizations the option of using SA– from a client to offset the replacement reported in Schedule RC–R, Part I, item CCR in place of CEM to calculate the cost and PFE components for client- 45.a (which would become item 54.a of exposure amount of their noncleared facing derivative transactions. Part I, as proposed above). The excluded and cleared derivative contracts. In the October 2019 notice, the deposits would be limited to the amount Category I and II banking organizations agencies proposed to revise the of deposit liabilities on the consolidated would have to choose either SA–CCR or instructions for Call Report Schedule balance sheet of the custodial banking the internal models methodology (IMM) RC–R, Part II, as well as for SLR Table organization that are linked to fiduciary to calculate the exposure amount of 2 in FFIEC 101 Schedule A, to or custody and safekeeping accounts. their noncleared and cleared derivative implement the changes to the contracts in connection with calculating 3. Proposed Revisions to FFIEC 101 calculation of the exposure amount of their risk-based capital under the derivative contracts under the agencies’ Schedule A advanced approaches. The SA–CCR capital rule. In the October 2019 notice, the final rule provides for the eventual agencies also proposed to revise the elimination of the current methods for Additionally, the SA–CCR final rule total leverage exposure calculation that Category I and II banking organizations notes that the FDIC is unable to would be reported on the FFIEC 101 to determine the risk-weighted asset incorporate the SA–CCR methodology Schedule A through the addition of a amount for their default fund into the deposit insurance assessment new data item for the qualifying central contributions to a central counterparty pricing methodology for highly complex bank deduction to the calculations of (CCP) or a qualifying central institutions 36 upon the effective date of the total leverage exposure in SLR counterparty (QCCP) and implements a this rule, but will consider options for Tables 1 and 2 of this schedule. The new and simpler method that would be addressing the use of SA–CCR in the new reporting item would be placed based on the banking organization’s pro- deposit insurance system as derivative between existing data items 1.7 and 1.8 rata share of the CCP’s and QCCP’s exposure data reported using SA–CCR in SLR Table 1 and between data items default fund. However, the final rule becomes available. In the meantime, 2.2 and 2.3 in SLR Table 2. allows banking organizations that elect certain clarifications would be made to to use SA–CCR to continue to use 4. Final Reporting Revisions the instructions for reporting method 1 and method 2 under CEM to counterparty exposures in Schedule The agencies received no comments calculate the risk-weighted asset amount RC–O, Memorandum items 14 and 15, on the proposed changes to Call Report for default fund contributions until of the FFIEC 031 and the FFIEC 041 Call January 1, 2022. Schedule RC–R, Part I, and FFIEC 101 Reports, requiring highly complex Schedule A for the SLR for custodial The SA–CCR final rule also requires institutions to continue to calculate banks and will implement the changes Category I and Category II banking derivative exposures using CEM, but as proposed. organizations to use SA–CCR to determine the exposure amount of without any reduction for collateral F. Standardized Approach for derivative contracts for purposes of other than cash collateral that is all or Counterparty Credit Risk on Derivative calculating total leverage exposure for part of variation margin and that Contracts the supplementary leverage ratio. If a satisfies certain requirements.37 1. Background Category III banking organization Similarly, certain clarifications would chooses to use SA–CCR to calculate its be made to the instructions for Schedule On November 19, 2019, the agencies total risk-weighted assets, it must use RC–O, Memorandum items 14 and 15, announced that they had adopted a final SA–CCR to determine the exposure in the FFIEC 031 and the FFIEC 041 Call rule implementing a new approach for amount of derivative contracts for its Reports requiring highly complex calculating the exposure amount of total leverage exposure. Where a institutions to continue to report the derivative contracts under the capital banking organization has the option to exposure amount associated with rule: The standardized approach for choose among the approaches securities financing transactions, counterparty credit risk (SA–CCR final applicable to such banking organization including cleared transactions that are rule).34 The SA–CCR final rule takes under the capital rule, it must use the effect April 1, 2020 (i.e., for the Call same approach for all purposes. 36 Report and the FFIEC 101 for the June See 12 CFR 327.8(g). Furthermore, the final rule allows a 37 See 12 CFR 3.10(c)(4)(ii)(C)(1)(ii) and (iii) and 30, 2020, report date) with a mandatory clearing member banking organization 3.10(c)(4)(ii)(C)(3)–(7) (OCC); 12 CFR to recognize the counterparty credit 217.10(c)(4)(ii)(C)(1)(ii) and (iii) and 34 See the SA–CCR final rule attached to OCC 217.10(c)(4)(ii)(C)(3)–(7) (Board); and 12 CFR News Release 2019–136, Board Press Release, and risk-reducing effect of client collateral 324.10(c)(4)(ii)(C)(1)(ii) and (iii) and FDIC Press Release 110–2019, all of which are dated 324.10(c)(4)(ii)(C)(3)–(7) (FDIC) (as amended under November 19, 2019. 35 84 FR 59231 (November 1, 2019). the SA–CCR final rule).

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securities financing transactions, using Memorandum item 3, the remaining Schedule RC–R should be based on the the standardized approach.38 maturity of such derivatives should be definition in U.S. GAAP. All notional the remaining maturity used to amounts reported in Schedule RC–L 2. Proposed Revisions to Call Report determine the conversion factor for the should be based on the U.S. GAAP Schedule RC–R, Part II calculation of the PFE of these contracts notional amount. The agencies will A banking organization that applies or the contractual remaining maturity of revise the instructions for Schedules the generally applicable capital these contracts. The derivatives RC–L and RC–R in this manner. requirements must report the notional information reported in Memorandum Both commenters addressed the amount and regulatory capital exposure items 1 through 3 of Schedule RC–R, reporting of the fair value of collateral amount of its derivatives exposures in Part II, is collected to assist the agencies held against over-the-counter (OTC) Schedule RC–R, Part II. In the October in understanding, and assessing the derivative exposures by type of 2019 notice, the agencies proposed to reasonableness of, the credit equivalent collateral and type of derivative revise the instructions for Schedule RC– amounts of the over-the-counter counterparty in Schedule RC–L, item R, Part II, to be consistent with SA–CCR. derivatives and the centrally cleared 16.b, and questioned whether this Generally, the proposed revisions to the derivatives reported in Schedule RC–R, information is meaningful. One reporting of derivatives elements in Part II, items 20 and 21, column B. commenter requested clarification of the Schedule RC–R, Part II, are driven by Accordingly, when reporting settled-to- purpose for collecting this information the treatment of cleared derivatives’ market centrally cleared derivative while the other recommended that the variation margin (settled-to-market contracts in Memorandum item 3, the agencies no longer collect this versus collateralized-to-market), netting remaining maturity used to determine information. The data items for provisions impacting the calculations of the applicable conversion factor should reporting the fair value of collateral are notional and exposure amounts, and be the basis for reporting. The agencies applicable to institutions with total attributions of derivatives to cleared will clarify the instructions for assets of $10 billion or more. In general, versus noncleared derivatives. The Memorandum item 3 to address the the agencies use this information in General Instructions for Schedule RC–R, reporting of settled-to-market contracts. their oversight and supervision of banks Part II, and the instructions for Schedule Both commenters stated that the Call engaging in OTC derivative activities. RC–R, Part II, items 20, 21, and Report instructions do not explain The breakdown of the fair value of Memorandum items 1 through 3 would whether institutions should report collateral posted for OTC derivative be revised. notional amounts in Schedule RC–L, exposures in item 16.b provides the 3. Proposed Revisions to FFIEC 101 Derivatives and Off-Balance Sheet agencies with important insights into Schedule A, SLR Table 2 Items, and Schedule RC–R, Part II, Risk- the extent to which collateral is used as Weighted Assets, for derivatives that part of the credit risk management In connection with their calculation have matured, but have associated practices associated with derivative of the supplementary leverage ratio, unsettled receivables or payables that credit exposures to different types of Category I, II, and III banking are reported as assets or liabilities, counterparties and changes over time in organizations must report the exposure respectively, on the balance sheet as of the nature and extent of the collateral amount of their derivatives in SLR Table the quarter-end report date. In seeking protection. As a result of the agencies’ 2 of FFIEC 101 Schedule A. In the clarification of the reporting review of Schedule RC–L in 2016 during October 2019 notice, the agencies requirements for such situations, the their most recent statutorily mandated proposed to revise the instructions for commenters recommended that notional review of existing Call Report data SLR Table 2 to be consistent with SA– amounts not be reported for derivatives items,40 the agencies reduced the level CCR. Institutions that continue to use that have matured. The agencies agree of detail required to be reported on the the CEM would use the current FFIEC and will clarify the Call Report fair value of collateral posted for OTC 101 Schedule A instructions to instructions to so indicate. derivative exposures in item 16.b complete SLR Table 2. For purposes of reporting notional effective June 30, 2018. The agencies’ 4. Comments Received and Instructions amounts in the Call Report, one use of the information reported in for Reporting Derivatives commenter recommended that the Schedule RC–L, item 16.b, will be agencies clarify whether the notional The agencies did not receive reviewed again before the end of 2022 amount as defined in U.S. generally as part of their next statutorily comments specifically addressing their accepted accounting principles proposals to revise the instructions for mandated review. (GAAP) 39 or under the SA–CCR final Schedule RC–R, Part II, and for FFIEC rule should be used when an institution G. High Volatility Commercial Real 101 Schedule A, SLR Table 2, consistent must report the notional amount of Estate (HVCRE) Land Development with the SA–CCR final rule. However, derivative contracts in Schedule RC–R, Loans two commenters submitted similar Regulatory Capital, and elsewhere in the questions and requests for clarifications 1. Background Call Report, such as Schedule RC–L. related to certain derivatives reporting The agencies believe that the SA–CCR On , 2019, the agencies issues. In Schedule RC–R, Part II, notional amount should be reported in published a final rule that conforms the Memorandum item 3, institutions report Schedule RC–R only when an HVCRE exposure definition in section 2 the notional principal amounts of 41 institution uses SA–CCR to calculate its of the capital rule to the statutory centrally cleared derivative contracts by definition of an HVCRE ADC loan 42 and remaining maturity. Commenters sought exposure amounts when the institution determines its standardized total risk- clarifies the capital treatment for loans clarification as to whether, for purposes that finance the development of land of reporting derivatives referred to as weighted assets. When an institution uses CEM to calculate exposure settled-to-market contracts in 40 This review is mandated by section 604 of the amounts for its derivative contracts, the Financial Services Regulatory Relief Act of 2006 (12 38 See 12 CFR 3.37(b) or (c) (OCC); 12 CFR notional amounts to be reported in U.S.C. 1817(a)(11)). 217.37(b) or (c) (Board); and 12 CFR 324.37(b) or 41 See 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); (c) (FDIC) (as amended under the SA–CCR final 39 See Accounting Standards Codification Section and 12 CFR 324.2 (FDIC). rule). 815–10–20. 42 See Section 214 of the EGRRCPA.

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under the revised HVCRE exposure capital leases, but do not recognize proposed in the October 2019 notice to definition (HVCRE final rule).43 This operating leases on the balance sheet. require that operating lease liabilities be final rule takes effect April 1, 2020. The lessee accounting model under reported on the Call Report balance Topic 842 retains the distinction sheet in Schedule RC, item 20, ‘‘Other 2. Proposed Revisions to Call Report between operating leases and capital liabilities.’’ In Schedule RC–G, Other Schedule RC–R, Part II leases, which the new standard labels Liabilities, operating lease liabilities The agencies’ adoption of the HVCRE finance leases. However, the new would be reported in item 4, ‘‘All other final rule supersedes the , 2018, standard requires lessees to record a liabilities.’’ In subitems of Schedule RC– interagency statement.44 In relevant right-of-use (ROU) asset and a lease G, item 4, institutions must itemize and part, this statement advised institutions liability on the balance sheet for describe any components of this item in that, when determining which loans operating leases. (For finance leases, a amounts greater than $100,000 that should be subject to a heightened risk lessee’s lease asset also is designated an exceed 25 percent of the amount weight, until the agencies take further ROU asset.) In general, the new standard reported in item 4. Because of the action institutions may choose to permits a lessee to make an accounting expected prevalence of operating lease continue to apply the current regulatory policy election to exempt leases with a liabilities, the agencies also proposed to definition of HVCRE exposure, or they term of one year or less at their add a new subitem with the preprinted may choose to apply the heightened risk commencement date from on-balance caption ‘‘Operating lease liabilities’’ to weight only to those loans they sheet recognition. item 4 to facilitate the reporting of these reasonably believe meet the statutory For institutions that are public liabilities when their amount exceeds definition of HVCRE ADC loan. business entities, as defined under U.S. the reporting threshold for itemizing Institutions will be required to apply the GAAP, Topic 842 is currently in effect. and describing components of ‘‘All HVCRE exposure definition in the final For institutions that are not public other liabilities.’’ These changes would rule beginning with the Call Report for business entities, the FASB recently take effect as of the March 31, 2020, June 30, 2020. Therefore, the agencies amended the effective date of the new report date. will make conforming revisions to the standard so that Topic 842 will now The agencies received no comments instructions for Schedule RC–R, Part II, take effect for fiscal years beginning on these proposed revisions for items 4.b and 5.b, in all versions of the after , 2020, and interim operating lease liabilities and will Call Report effective as of that report reporting periods within fiscal years implement them as proposed. date. No revisions to the Call Report beginning after December 15, 2021.45 forms are necessary. Early application of the new standard is I. Reporting Home Equity Lines of Credit permitted for all institutions. That Convert From Revolving to Non- 3. Proposed Revisions to FFIEC 101 The Call Report Supplemental Revolving Status Schedule G 46 Instructions for March 2019 stated 1. Proposed Instructional Clarification The changes to the HVCRE exposure that a lessee should report lease definition discussed above would also liabilities for operating leases and Institutions report the amount affect the instructions for Schedule G— finance leases, including lease liabilities outstanding under revolving, open-end Wholesale Exposure in the FFIEC 101. recorded upon adoption of the ASU, in lines of credit secured by 1–4 family Therefore, the agencies also will make Schedule RC–M, items 5.b, ‘‘Other residential properties (commonly conforming revisions to the FFIEC 101 borrowings,’’ and 10.b, ‘‘Amount of known as home equity lines of credit or instructions to align with the new ‘Other borrowings’ that are secured,’’ HELOCs) in item 1.c.(1) of Schedule HVCRE exposure definition in the final which is consistent with the current RC–C, Part I, Loans and Leases. The rule effective as of the June 30, 2020, Call Report instructions for reporting a amounts of closed-end loans secured by report date. lessee’s obligations under capital leases 1–4 family residential properties are under ASC Topic 840. In response to reported in Schedule RC–C, Part I, item H. Operating Lease Liabilities this instructional guidance, the agencies 1.c.(2)(a) or (b), depending on whether In February 2016, the Financial received questions from institutions the loan is a first or a junior lien.47 Accounting Standards Board (FASB) concerning the reporting of a bank A HELOC is a line of credit secured issued ASU No. 2016–02, ‘‘Leases,’’ lessee’s lease liabilities for operating by a lien on a 1–4 family residential which added Topic 842, Leases, to the leases. These institutions indicated that property that generally provides a draw Accounting Standards Codification reporting operating lease liabilities as period followed by a repayment period. (ASC). Once ASU 2016–02 is effective other liabilities instead of other During the draw period, a borrower has for an institution, the ASU’s accounting borrowings would better align the revolving access to unused amounts requirements, as amended by certain reporting of the single noninterest under a specified line of credit. During subsequent ASUs, supersede ASC Topic expense item for operating leases in the the repayment period, the borrower can 840, Leases. income statement (which is the no longer draw on the line of credit, and The most significant change that ASC presentation required by ASC Topic the outstanding principal is either due Topic 842 makes to the previous lease 842) with their balance sheet immediately in a balloon payment or accounting requirements is to lessee classification and would be consistent repaid over the remaining loan term accounting. Under the lease accounting with how these institutions report through monthly payments. Because the standards in ASC Topic 840, lessees operating lease liabilities internally. Call Report instructions do not address recognize lease assets and lease The agencies considered the views the reporting treatment for a home liabilities on the balance sheet for expressed by these institutions and equity line of credit when it reaches its end-of-draw period and converts from 43 84 FR 68019 (December 13, 2019). 45 See FASB ASU 2019–10, Financial 44 Board, FDIC, and OCC, Interagency statement Instruments—Credit Losses (Topic 326), Derivatives 47 Institutions report additional information on regarding the impact of the Economic Growth, and Hedging (Topic 815), and Leases (Topic 842): open-end and closed-end loans secured by 1–4 Regulatory Relief, and Consumer Protection Act Effective Dates. family residential properties in certain other Call (EGRRCPA), https://www.federalreserve.gov/ 46 https://www.ffiec.gov/pdf/FFIEC_forms/ Report schedules in accordance with the loan newsevents/pressreleases/files/ FFIEC031_FFIEC041_FFIEC051_suppinst_ category definitions in Schedule RC–C, Part I, items bcreg20180706a1.pdf. 201903.pdf. 1.c.(1), 1.c.(2)(a), and 1.c.(2)(b).

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revolving to non-revolving status, the in accordance with U.S. GAAP, an report filed by holding companies with agencies have found diversity in how entity must separately disclose line-of- total consolidated assets of $100 billion these credits are reported in Schedule credit arrangements that are converted or more.51 In addition, one commenter RC–C, Part I, items 1.c.(1), 1.c.(2)(a), and to term loans from line-of-credit stated that the proposed Call Report 1.c.(2)(b), and in other Call Report items arrangements that remain in revolving instructional clarification may lead to that use the definitions of these three status. The agencies further stated in the inconsistencies between the reporting of loan categories. October 2019 notice that they had HELOCs in open-end and closed-end In September 2015, to address this determined that there would be little or status in the Call Report and disclosures absence of instructional guidance and no impact to the regulatory capital of HELOCs made in filings with the promote consistency in reporting, the calculations, FDIC deposit insurance Securities and Exchange Commission agencies proposed to clarify the assessments, or other regulatory under the federal securities laws. instructions for reporting loans secured reporting requirements as a result of this Another commenter cited differences in by 1–4 family residential properties by proposed clarification, which were the risk profiles of loans underwritten as specifying that after a revolving open- other concerns previously raised by HELOCs and those underwritten as end line of credit has converted to non- commenters. closed-end loans at origination and revolving closed-end status, the loan Therefore, in the October 2019 notice, indicated that the proposed should be reported as closed-end in the agencies re-proposed to clarify the instructional clarification could distort Schedule RC–C, Part I, item 1.c.(2)(a) or Call Report instructions for Schedule performance trends for loans secured by (b), as appropriate.48 As discussed in a RC–C, Part I, items 1.c.(1), 1.c.(2)(a), and 1–4 family residential properties as subsequent notice,49 the agencies 1.c.(2)(b), to address continuing HELOCs migrate between the open-end received a number of comments that diversity in reporting practices by and closed-end loan categories in the raised concerns with the proposal. In stating that revolving, open-end lines of Call Report. Two of the commenters particular, some commenters stated that credit secured by 1–4 family residential opposing the proposed instructional reclassifying HELOCs after the draw properties that have converted to non- clarification instead recommended the period could raise operational revolving closed-end status should be creation of a memorandum item in the challenges for institutions’ loan systems reported as closed-end loans. The effect Call Report loan schedule (Schedule that would require additional time to of this clarification would extend to the RC–C, Part I) to identify for supervisory implement. Based on the feedback instructions for numerous data items purposes the amount of HELOCs that received, the agencies did not proceed elsewhere in the Call Report that have converted to non-revolving closed- with their proposed instructional reference the Schedule RC–C, Part I, end status. The other commenter clarification at that time. loan category definitions for open-end suggested segregating closed-end The agencies continue to believe that and closed-end loans secured by 1–4 HELOCs using a separate loan category it is important to collect accurate data family residential properties and were code, which may also imply separate on loans secured by 1–4 family identified in the October 2019 notice. reporting and disclosure of such residential properties in the Call Report. That notice also identified a limited HELOCs. Consistent classification of HELOCs number of Call Report data items to One commenter also requested that based on the status of the draw period which this instructional clarification the agencies clarify the reporting is particularly important for the would not be applied. treatment for ‘‘drawdowns of a HELOC agencies’ safety and soundness To address prior comments regarding Flex product that contain ‘lock-out’ monitoring. Due to the structure of the time needed for any systems features,’’ which was described as the HELOCs discussed above, borrowers changes, the agencies proposed that borrower’s exercise of an option to generally are not required to make compliance with the clarified convert a draw on the line of credit to principal repayments during the draw instructions would not be required until ‘‘a fixed rate interest structure with period, which may create a financial the March 31, 2021, report date. The defined payments and term.’’ shock for borrowers when they must October 2019 notice further proposed After considering the comments make a balloon payment or begin that institutions not currently reporting received, the agencies will not regular monthly repayments after the in accordance with the clarified implement the proposed clarification to draw period. With some institutions instructions would be permitted, but not the instructions for Schedule RC–C, Part reporting HELOCs past the draw period required, to report in accordance with I, items 1.c.(1), 1.c.(2)(a), and 1.c.(2)(b) as revolving, this increases the amounts the clarified instructions before that that would result in revolving, open-end outstanding, charge-offs, recoveries, past date. lines of credit secured by 1–4 family dues, and nonaccruals reported in the 2. Comments Received and Final residential properties that have open-end category relative to the Reporting Revisions converted to non-revolving closed-end amounts reported by institutions that status being reported as closed-end treat HELOCs past the draw period as Three commenters opposed the loans. In light of the guidance in the closed-end, which makes the data less agencies’ proposal to require that instructions for the Board’s FR Y–14M useful for agency comparisons and HELOCs that have converted to non- report that directs reporting entities to safety and soundness monitoring. In revolving closed-end status should be continue to report HELOCs that are no addition, in ASU No. 2019–04,50 the reported as closed-end loans. longer revolving credits in the Home FASB amended ASC Subtopic 326–20 Commenters cited the numerous data Equity schedule, the agencies propose to on credit losses to require that, when items in multiple Call Report schedules adopt this treatment for Call Report presenting credit quality disclosures in that would be affected by this proposed purposes. However, recognizing the notes to financial statements prepared instructional clarification and the existing diversity in practice in which reconfiguration of systems that would some institutions report HELOCs that 48 See 80 FR 56539 (, 2015). need to be undertaken as well as a have converted from revolving to non- 49 See 81 FR 45357 (, 2016). definitional conflict between the Call revolving status as closed-end loans in 50 ASU No. 2019–04, ‘‘Codification Improvements Report instructions as the agencies to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, proposed to clarify them and the 51 Capital Assessments and Stress Testing Report Financial Instruments,’’ issued in April 2019. instructions for the Board’s FR Y–14M (FR Y–14M), OMB Number 7100–0341.

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the Call Report while other institutions to implement this new memorandum June 30, 2021, in the FFIEC 051 Call continue to report such HELOCs as item as of the March 31, 2021, report Report. open-end loans, the agencies propose date in the FFIEC 031 and the FFIEC The specific wording of the captions that institutions report all HELOCs that 041 Call Reports and as of the June 30, for the new or revised Call Report data convert to closed-end status on or after 2021, report date in the FFIEC 051 Call items discussed in this notice and the January 1, 2021, as open-end loans in Report. numbering of these data items should be regarded as preliminary. Schedule RC–C, Part I, item 1.c.(1). An III. Timing institution that currently reports IV. Request for Comment HELOCs that have converted to non- As stated in their October 2019 notice, revolving closed-end status as open-end the agencies plan to make the capital- Public comment is requested on all loans in Schedule RC–C, Part I, item related reporting changes described in aspects of this joint notice. Comment is 1.c.(1), should not change its reporting Sections II.B. through II.G. effective the specifically invited on: practice for these loans and should same quarters as the effective dates of (a) Whether the proposed revisions to continue to report these loans in item the various final capital rules discussed the collections of information that are 1.c.(1) regardless of their conversion in this notice. Thus, the reporting the subject of this notice are necessary date. An institution that currently revisions to the Call Report and the for the proper performance of the reports HELOCs that convert to non- FFIEC 101, as applicable, would take agencies’ functions, including whether revolving closed-end status as closed- effect March 31, 2020, for the capital the information has practical utility; end loans in Schedule RC–C, Part I, item simplifications rule, the community (b) The accuracy of the agencies’ 1.c.(2)(a) or 1.c.(2)(b), as appropriate, bank leverage ratio rule, and the estimates of the burden of the may continue to report HELOCs that tailoring final rule. In this regard, the information collections as they are convert on or before December 31, 2020, filing of the FFIEC 031 Call Report by proposed to be revised, including the as closed-end loans in Call Reports for all institutions that are advanced validity of the methodology and report dates after that date. approaches institutions under the assumptions used; (c) Ways to enhance the quality, Alternatively, the institution may tailoring final rule and the filing of the utility, and clarity of the information to choose to begin reporting some or all of FFIEC 031 or FFIEC 041 Call Report by institutions considered Category III be collected; these closed-end HELOCs as open-end (d) Ways to minimize the burden of loans in item 1.c.(1) as of the March 31, institutions under this rule would take effect as of March 31, 2020. Non- information collections on respondents, 2020, or any subsequent report date, advanced approaches institutions may including through the use of automated provided this reporting treatment is elect to wait to adopt the capital collection techniques or other forms of consistently applied. With respect to simplifications rule for reporting information technology; and HELOC Flex products, the proposed purposes until the June 30, 2020, report (e) Estimates of capital or start-up reporting treatment described above date. The reporting revisions to the Call costs and costs of operation, would mean that amounts drawn on a Report and the FFIEC 101, as applicable, maintenance, and purchase of services HELOC during its draw period that a would take effect June 30, 2020, for the to provide information. borrower converts to a closed-end custodial bank supplementary leverage Comments submitted in response to amount before the end of this period ratio final rule, the standardized this joint notice will be shared among also should be reported as open-end approach for counterparty credit risk on the agencies. loans in Schedule RC–C, Part I, item derivative contracts final rule, and the Dated: , 2020. 1.c.(1), subject to the transition guidance high volatility commercial real estate above. Theodore J. Dowd, exposures final rule. However, the Deputy Chief Counsel, Office of the The agencies also agree with mandatory compliance date for Comptroller of the Currency. commenters’ suggestion to create a reporting in accordance with the Board of Governors of the Federal Reserve memorandum item in Schedule RC–C, standardized approach for counterparty System, January 21, 2020. Part I, in which institutions would credit risk final rule is the March 31, Ann E. Misback, report the amount of HELOCs that have 2022, report date. Secretary of the Board. converted to non-revolving closed-end In addition, the reporting of operating status that are included in item 1.c.(1), lease liabilities as ‘‘All other liabilities’’ Federal Deposit Insurance Corporation. ‘‘Revolving, open-end loans secured by in Call Report Schedule RC–G would Dated at Washington, DC, on January 21, 1–4 family residential properties and take effect March 31, 2020, and the 2020. extended under lines of credit.’’ This change in the reporting of construction, Annmarie H. Boyd, new Memorandum item 16 in Schedule land development, and other land loans Assistant Executive Secretary. RC–C, Part I, would enable the agencies with interest reserves in Call Report [FR Doc. 2020–01292 Filed 1–24–20; 8:45 am] to monitor the proportion of an Schedule RC–C, Part I, would take effect BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P institution’s home equity credits in March 31, 2021. The requirement to revolving and non-revolving status and continue reporting HELOCs that convert changes therein and assess whether to closed-end status as open-end loans DEPARTMENT OF THE TREASURY changes in this proportion in relation to in Schedule RC–C, Part I, would apply changes in past due and nonaccrual to those HELOCs that convert on or after Financial Crimes Enforcement Network home equity credits and charge-offs and January 1, 2021, with pre-2021 Agency Information Collection recoveries of such credits warrant conversions subject to the transition Activities; Proposed Renewal; supervisory follow-up. Memorandum guidance described in Section II.I. Comment Request; Renewal Without item 16 would be collected quarterly in above; new Memorandum item 16 in Change of the Registration of Money the FFIEC 031 and the FFIEC 041 Call Schedule RC–C, Part I, for HELOCs in Services Businesses Regulation and Reports and semiannually as of June 30 non-revolving closed-end status that are FinCEN Form 107 and December 31 in the FFIEC 051 Call reported as open-end loans would take Report. To provide time needed for any effect March 31, 2021, in the FFIEC 031 AGENCY: Financial Crimes Enforcement systems changes, the agencies propose and the FFIEC 041 Call Reports and Network (‘‘FinCEN’’), Treasury.

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