82580 Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices

CV and a restatement of the current effects resulting from certain optional Treasury’’ and then click ‘‘submit.’’ This sector they represent by the deadline. regulatory capital transition provisions information collection can be located by Nominations are open to all individuals relating to the implementation of the searching by OMB control number without regard to race, color, religion, current expected credit losses (CECL) ‘‘1557–0081.’’ Upon finding the sex, national origin, age, mental or methodology. The change to the Call appropriate information collection, click physical disability, marital status, or Reports would enable the FDIC to on the related ‘‘ICR Reference Number.’’ sexual orientation. Evaluations will be remove the double counting of a On the next screen, select ‘‘View based on the materials submitted. specified portion of the CECL Supporting Statement and Other Authority: 42 U.S.C. 300d–4(b); 49 CFR transitional amount or the modified Documents’’ and then click on the link 1.95(i)(4). CECL transitional amount, as applicable to any comment listed at the bottom of Issued in Washington, DC. (collectively, the CECL transitional the screen. amounts), in certain financial measures • For assistance in navigating Nanda Narayanan Srinivasan, that are calculated using the sum of Tier www.reginfo.gov, please contact the Associate Administrator, Research and Program Development. 1 capital and reserves and that are used Regulatory Information Service Center to determine assessment rates for large at (202) 482–7340. [FR Doc. 2020–27942 Filed 12–17–20; 8:45 am] and highly complex IDIs. Board: You may submit comments, BILLING CODE 4910–59–P DATES: Comments must be submitted on which should refer to ‘‘Call Report or before February 16, 2021. Deposit Insurance Assessment-Related Revisions,’’ by any of the following DEPARTMENT OF THE TREASURY ADDRESSES: Interested parties are invited to submit written comments to methods: • Office of the Comptroller of the any or all of the agencies. All comments, Agency website: http:// Currency which should refer to the ‘‘Call Report www.federalreserve.gov. Follow the Deposit Insurance Assessment-Related instructions for submitting comments at: FEDERAL RESERVE SYSTEM Revisions,’’ will be shared among the http://www.federalreserve.gov/ agencies. generalinfo/foia/ProposedRegs.cfm. • FEDERAL DEPOSIT INSURANCE OCC: You may submit comments, Email: regs.comments@ CORPORATION which should refer to ‘‘Call Report federalreserve.gov. Include ‘‘Call Report Deposit Insurance Assessment-Related Deposit Insurance Assessment-Related Proposed Agency Information Revisions,’’ by any of the following Revisions’’ in the subject line of the Collection Activities; Comment methods: message. Request • Email: [email protected]. • Fax: (202) 395–6974. • • Mail: Ann E. Misback, Secretary, AGENCY: Mail: Chief Counsel’s Office, Office Office of the Comptroller of the Board of Governors of the Federal Currency (OCC), Treasury; Board of of the Comptroller of the Currency, Reserve System, 20th Street and Governors of the Federal Reserve Attention: 1557–0081, 400 7th Street Constitution Avenue NW, Washington, System (Board); and Federal Deposit SW, Suite 3E–218, Washington, DC DC 20551. Insurance Corporation (FDIC). 20219. • Hand Delivery/Courier: 400 7th All public comments are available on ACTION: Joint notice and request for Street SW, suite 3E–218, Washington, the Board’s website at https:// comment. DC 20219. www.federalreserve.gov/apps/foia/ SUMMARY: In accordance with the Instructions: You must include proposedregs.aspx as submitted, unless requirements of the Paperwork ‘‘OCC’’ as the agency name and ‘‘1557– modified for technical reasons. Reduction Act of 1995 (PRA), the OCC, 0081’’ in your comment. In general, the Accordingly, your comments will not be the Board, and the FDIC (the agencies) OCC will publish comments on edited to remove any identifying or may not conduct or sponsor, and the www.reginfo.gov without change, contact information. respondent is not required to respond including any business or personal FDIC: You may submit comments, to, an information collection unless it information provided, such as name and which should refer to ‘‘Call Report displays a currently valid Office of address information, email addresses, or Deposit Insurance Assessment-Related Management and Budget (OMB) control phone numbers. Comments received, Revisions,’’ by any of the following number. The Federal Financial including attachments and other methods: Institutions Examination Council supporting materials, are part of the • Agency website: https:// (FFIEC), of which the agencies are public record and subject to public www.fdic.gov/regulations/laws/federal/. members, has approved the agencies’ disclosure. Do not include any Follow the instructions for submitting publication for public comment of a information in your comment or comments on the FDIC’s website. proposal to revise and extend the supporting materials that you consider • Federal eRulemaking Portal: Consolidated Reports of Condition and confidential or inappropriate for public https://www.regulations.gov. Follow the Income (Call Reports) (FFIEC 031, disclosure. instructions for submitting comments. FFIEC 041, and FFIEC 051), which are You may review comments and other • Email: [email protected]. currently approved collections of related materials that pertain to this Include ‘‘Call Report Deposit Insurance information. The agencies are requesting information collection beginning on the Assessment-Related Revisions’’ in the comment on a change to the Call Report date of publication of the second notice subject line of the message. forms and instructions (FFIEC 031 and for this collection by the following • Mail: Manuel E. Cabeza, Counsel, FFIEC 041 only) to implement the method: Attn: Comments, Room MB–3128, FDIC’s proposed amendments to the • Viewing Comments Electronically: Federal Deposit Insurance Corporation, deposit insurance assessment system Go to www.reginfo.gov. Click on the 550 17th Street NW, Washington, DC applicable to all large insured ‘‘Information Collection Review’’ tab. 20429. depository institutions (IDIs), including Underneath the ‘‘Currently under • Hand Delivery: Comments may be highly complex IDIs, to address the Review’’ section heading, from the drop- hand delivered to the guard station at temporary deposit insurance assessment down menu select ‘‘Department of the rear of the 550 17th Street Building

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(located on F Street) on business days Type of Review: Revision and savings banks), and 12 U.S.C. 1464 between 7:00 a.m. and 5:00 p.m. extension of currently approved (federal and state savings associations). • Public Inspection: All comments collections. At present, except for selected data received will be posted without change OCC items and text, these information to https://www.fdic.gov/regulations/ collections are not given confidential laws/federal/ including any personal OMB Control No.: 1557–0081. treatment. information provided. Paper copies of Estimated Number of Respondents: Banks and savings associations public comments may be requested from 1,111 national banks and federal savings submit Call Report data to the agencies the FDIC Public Information Center by associations. each quarter for the agencies’ use in telephone at (877) 275–3342 or (703) Estimated Average Burden per 562–2200. Response: 41.92 burden hours per monitoring the condition, performance, Additionally, commenters may send a quarter to file. and risk profile of individual copy of their comments to the OMB Estimated Total Annual Burden: institutions and the industry as a whole. desk officer for the agencies by mail to 186,292 burden hours to file. Call Report data serve a regulatory or public policy purpose by assisting the the Office of Information and Regulatory Board Affairs, U.S. Office of Management and agencies in fulfilling their shared Budget, New Executive Office Building, OMB Control No.: 7100–0036. missions of ensuring the safety and Room 10235, 725 17th Street NW, Estimated Number of Respondents: soundness of financial institutions and Washington, DC 20503; by fax to (202) 739 state member banks. the financial system and protecting 395–6974; or by email to oira_ Estimated Average Burden per consumer financial rights, as well as [email protected]. Response: 45.40 burden hours per agency-specific missions affecting quarter to file. FOR FURTHER INFORMATION CONTACT: For national and state-chartered institutions, Estimated Total Annual Burden: such as conducting monetary policy, further information about the proposed 134,202 burden hours to file. revisions to the information collections ensuring financial stability, and discussed in this notice, please contact FDIC administering federal deposit insurance. any of the agency staff whose names OMB Control No.: 3064–0052. Call Reports are the source of the most appear below. In addition, copies of the Estimated Number of Respondents: current statistical data available for report forms for the Call Reports can be 3,263 insured state nonmember identifying areas of focus for on-site and obtained at the FFIEC’s website (https:// banksand state savings associations. off-site examinations. Among other www.ffiec.gov/ffiec_report_forms.htm). Estimated Average Burden per purposes, the agencies use Call Report OCC: Kevin Korzeniewski, Counsel, Response: 39.96 burden hours per data in evaluating institutions’ corporate Chief Counsel’s Office, (202) 649–5490. quarter to file. applications, including interstate merger Board: Nuha Elmaghrabi, Federal Estimated Total Annual Burden: and acquisition applications for which Reserve Board Clearance Officer, (202) 521,558 burden hours to file. the agencies are required by law to 452–3884, Office of the Chief Data The estimated average burden hours determine whether the resulting Officer, Board of Governors of the collectively reflect the estimates for the institution would control more than 10 Federal Reserve System, 20th and C FFIEC 031, the FFIEC 041, and the percent of the total amount of deposits Streets NW, Washington, DC 20551. FFIEC 051 reports for each agency. of insured depository institutions in the Telecommunications Device for the Deaf When the estimates are calculated by United States. Call Report data also are (TDD) users may call (202) 263–4869. type of report across the agencies, the used to calculate institutions’ deposit FDIC: Manuel E. Cabeza, Counsel, estimated average burden hours per insurance assessments and national (202) 898–3767, Legal Division, Federal quarter are 85.85 (FFIEC 031), 55.20 banks’ and federal savings associations’ Deposit Insurance Corporation, 550 17th (FFIEC 041), and 35.27 (FFIEC 051). The semiannual assessment fees. Street NW, Washington, DC 20429. change to the FFIEC 031 and FFIEC 041 SUPPLEMENTARY INFORMATION: Call Report forms and instructions II. Current Action proposed in this notice would not have I. Report Summary A. Background a material impact on the existing burden The agencies propose to extend for estimates. This notice does not propose Upon adoption of the CECL three years, with revision, their any changes to the FFIEC 051. The methodology, an institution will record information collections associated with estimated burden per response for the a one-time adjustment to its credit loss the FFIEC 031, FFIEC 041, and FFIEC quarterly filings of the Call Report is an allowances as of the beginning of its 051 Call Reports. average that varies by agency because of fiscal year of adoption equal to the Report Title: Consolidated Reports of differences in the composition of the difference, if any, between the amount Condition and Income (Call Report). institutions under each agency’s of credit loss allowances required under Form Number: FFIEC 031 supervision (e.g., size distribution of the incurred loss methodology and the (Consolidated Reports of Condition and institutions, types of activities in which amount of credit loss allowances Income for a Bank with Domestic and they are engaged, and existence of required under CECL. An institution’s Foreign Offices), FFIEC 041 foreign offices). implementation of CECL will affect its (Consolidated Reports of Condition and Type of Review: Extension and retained earnings, deferred tax assets, Income for a Bank with Domestic revision of currently approved credit loss allowances, and, as a result, Offices Only), and FFIEC 051 collections. (Consolidated Reports of Condition and its regulatory capital ratios. Income for a Bank with Domestic Legal Basis and Need for Collections In recognition of the potential for the Offices Only and Total Assets Less Than The Call Report information implementation of CECL to affect $5 Billion). collections are mandatory: 12 U.S.C. 161 regulatory capital ratios, on February 14, Frequency of Response: Quarterly. (national banks), 12 U.S.C. 324 (state 2019, the agencies issued a final rule Affected Public: Business or other for- member banks), 12 U.S.C. 1817 (insured that revised certain regulations, profit. state nonmember commercial and including the agencies’ regulatory

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capital regulations (capital rule),1 to adopted CECL, Schedule RC, item 4.c, B. Proposed New Memorandum Item To account for the aforementioned changes reflects the allowance for credit losses Remove Double Counting to credit loss accounting under U.S. on loans and leases. The issue of double In calculating certain financial generally accepted accounting counting arises in certain financial measures used in the scorecards for principles (GAAP), including CECL measures used to determine assessment determining deposit insurance (2019 CECL rule).2 The 2019 CECL rule rates for large and highly complex assessment rates for large and highly includes a transition provision that institutions that are calculated using complex institutions, the FDIC has allows institutions to phase in over a both Tier 1 capital and reserves because proposed to remove a portion of the three-year period the day-one adverse the allowance for credit losses on loans CECL transitional amounts added to effects of CECL on their regulatory and leases is included during the retained earnings for regulatory capital capital ratios. transition period in both reserves and, purposes under the transitions provided As part of the efforts to address the as a portion of the CECL or modified for under the 2019 or 2020 CECL rules. disruption of economic activity in the CECL transitional amount, Tier 1 Specifically, in certain measures used in United States caused by the spread of capital. the scorecard approach for determining the coronavirus disease 2019 (COVID– For institutions that elect either the assessment rates for large and highly 19), on March 31, 2020, the agencies complex institutions, the applicable adopted a second CECL transition three-year transition provision contained in the 2019 CECL rule or the portion of the CECL transitional amount provision through an interim final rule.3 (or modified CECL transitional amount) The agencies subsequently adopted a five-year transition provision contained in the 2020 CECL rule, the CECL that is added to retained earnings for final rule (2020 CECL rule) on regulatory capital purposes and is September 30, 2020, that is consistent transitional amounts, as defined in the 7 attributable to the allowance for credit with the interim final rule, with some regulatory capital rules, additionally include the effect on retained earnings, losses on loans and leases held for clarifications and adjustments related to investment would be removed under the the calculation of the transition and the net of tax effect, of establishing allowances for credit losses in FDIC’s proposal. However, large and eligibility criteria for using the 2020 highly complex institutions that have CECL transition provision.4 The 2020 accordance with the CECL methodology on held-to-maturity (HTM) debt elected a CECL transition provision do CECL rule provides that only not currently report these specific securities, other financial assets institutions that adopt CECL for a fiscal portions of the CECL transitional measured at amortized cost, and off- year that begins during the 2020 amounts in the Call Report. Thus, balance sheet credit exposures as of the calendar year, have the option to delay implementing the FDIC’s proposed beginning of the fiscal year of adoption. for up to two years an estimate of amendments to the risk-based deposit The applicable portions of the CECL CECL’s effect on regulatory capital, insurance assessment system applicable transitional amounts attributable to followed by a three-year transition to large and highly complex institutions allowances for credit losses on HTM period (i.e., a five-year transition period requires a new, temporary debt securities, other financial assets in total). The 2020 CECL rule does not memorandum item and corresponding measured at amortized cost, and off- replace the three-year transition changes to the FFIEC 031 and FFIEC 041 balance sheet credit exposures are provision in the 2019 CECL rule, which versions of the Call Report forms and remains available to any institution at included in Tier 1 capital only and are instructions. the time that it adopts CECL.5 not double counted with reserves for In this regard, the CECL effective Certain financial measures that are deposit insurance assessment purposes. dates assigned by the Financial used to determine assessment rates for To address the temporary deposit Accounting Standards Board’s large and highly complex institutions 6 insurance assessment effects resulting Accounting Standards Update (ASU) are calculated using both Tier 1 capital from certain optional regulatory capital No. 2016–13, Financial Instruments— and reserves. For institutions that elect transition provisions under the 2019 Credit Losses, Topic 326, Measurement either the three-year transition provision and 2020 CECL rules, the FDIC of Credit Losses on Financial contained in the 2019 CECL rule or the proposed amendments to the deposit Instruments (ASU 2016–13) as most five-year transition provision contained insurance assessment system applicable recently amended by ASU No. 2019–10, in the 2020 CECL rule, the amount of to all large and highly complex IDIs on the optional temporary relief from Tier 1 capital reported in Call Report December 7, 2020.8 Under these complying with CECL afforded by the Schedule RC–R, Part I, item 26, includes proposed amendments to the CARES Act, and the transitions under (due to adjustments to the amount of assessment system, the FDIC would the 2019 CECL rule and 2020 CECL rule retained earnings reported on the Call remove the double counting of the provide that, at present, all institutions Report balance sheet) the applicable applicable portion of the CECL will have completely reflected in portion of the CECL transitional amount transitional amounts that is added to regulatory capital the day-one effects of (or the modified CECL transitional retained earnings for regulatory capital CECL (plus, if applicable, an estimate of amount). For deposit insurance purposes and is attributable to the CECL’s effect on regulatory capital, assessment purposes, reserves are allowance for credit losses on loans and relative to the incurred loss calculated using the amount of the leases held for investment in certain methodology’s effect on regulatory allowance for loan and lease losses financial measures that are calculated capital, during the first two years of reported in Call Report Schedule RC, using the sum of Tier 1 capital and CECL adoption) by December 31, 2026. item 4.c. For all institutions that have reserves, and also from the loss severity As a result, the reporting change for measure, which are used to determine large and highly complex institutions 1 12 CFR part 3 (OCC); 12 CFR part 217 (Board); would be required only while the 12 CFR part 324 (FDIC). assessment rates for large and highly 2 84 FR 4222 (Feb. 14, 2019). complex institutions. temporary relief under the 2019 and 3 85 FR 17723 (Mar. 31, 2020). 2020 CECL rules is reflected in 4 See 85 FR 61577 (Sept. 30, 2020). 7 See 12 CFR 3.301 (OCC); 12 CFR 217.301 institutions’ Call Reports. The agencies 5 See 85 FR 61578 (Sept. 30, 2020). (Board); 12 CFR 324.301 (FDIC). would remove the proposed new Call 6 See 12 CFR 327.8 and 12 CFR 327.16(f). 8 85 FR 78794 (Dec. 7, 2020). Report item when all large and highly

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complex institutions are no longer using the subject of this notice are necessary addressing the five broad management a CECL transition. for the proper performance of the issues described by the GAO in its 2015 Specifically, the agencies propose to agencies’ functions, including whether High Risk Series Update, which include: add a new Memorandum item 5 to the information has practical utility; policy and processes, oversight and Schedule RC–O, Other Data for Deposit (b) The accuracy of the agencies’ accountability, information technology Insurance Assessments, in the FFIEC estimates of the burden of the (IT), adequate training, and resource 031 and the FFIEC 041 Call Reports, information collections as they are allocation. only in order to quantify the applicable proposed to be revised, including the portions of the CECL transitional validity of the methodology and FOR FURTHER INFORMATION CONTACT: amounts added to retained earnings for assumptions used; Karen Rasmussen, M.D., Director for regulatory capital purposes and (c) Ways to enhance the quality, GAO–OIG Accountability Liaison at attributable to the allowance for credit utility, and clarity of the information to (202) 461–6643 or losses on loans and leases held for be collected; [email protected]. investment. The removal of this portion (d) Ways to minimize the burden of SUPPLEMENTARY INFORMATION: VA’s of the CECL transitional amounts is information collections on respondents, commitment to addressing the needed because, for large and highly including through the use of automated management functions GAO highlighted complex institutions that have adopted collection techniques or other forms of in its report will ensure large initiatives CECL, the measure of reserves used in information technology; and are reinforced by sound policy; are the scorecard is limited to the allowance (e) Estimates of capital or start-up implemented by staff with the right for credit losses on loans and leases. costs and costs of operation, knowledge, skills, and abilities; receive To adjust the calculations of certain maintenance, and purchase of services financial measures used to determine the right IT support; identify and secure to provide information. essential human and financial deposit insurance assessment rates for Comments submitted in response to large and highly complex institutions, resources; have management oversight; this joint notice will be shared among and are accountable throughout the FDIC would remove the amount the agencies. reported in the new Schedule RC–O planning, implementation, and Memorandum item from scorecard Bao Nguyen, reinforcement. To that end, VA’s 2020 measures that are calculated using the Principal Deputy Chief Counsel,Office of the plan includes over 250 actions sum of Tier 1 capital and reserves and Comptroller of the Currency.Board of underway and other measures to also from the loss severity measure in Governors of the Federal Reserve System. monitor progress toward achieving the the scorecards. Michele Taylor Fennell, outcomes described in Chapter 2. The Deputy Associate Secretary of the Board. plan also identifies key transformational C. Timing Dated at Washington, DC, on or about initiatives from the Veterans Health Beginning with the June 30, 2021, Call December 14, 2020. Administration’s Plan for Report, Schedule RC–O, Memorandum Federal Deposit Insurance Corporation. Modernization that complement or item 5, ‘‘Applicable portion of the CECL James P. Sheesley, contribute to resolution of the areas of transitional amount or modified CECL Assistant Executive Secretary. concern (Chapter 1). transitional amount that has been added [FR Doc. 2020–27847 Filed 12–17–20; 8:45 am] Signing Authority to retained earnings for regulatory BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P capital purposes as of the report date The Secretary of Veterans Affairs, or and is attributable to loans and leases designee, approved this document and held for investment,’’ would be DEPARTMENT OF VETERANS authorized the undersigned to sign and completed only by large and highly AFFAIRS submit the document to the Office of the complex institutions that have adopted Federal Register for publication ASU 2016–13 and reported having a VA High Risk List Action Plan, electronically as an official document of CECL transition election in effect as of Managing Risks, and Improving VA the Department of Veterans Affairs. the quarter-end report date. Health Care Brooks D. Tucker, Assistant Secretary The specific wording of the caption for Congressional and Legislative for the proposed new Schedule RC–O AGENCY: Department of Veterans Affairs. Affairs, Performing the Delegable Duties Memorandum item discussed in this ACTION: Notice. of the Chief of Staff, Department of proposal and the numbering of this Veterans Affairs, approved this Memorandum item should be regarded SUMMARY: Notice is given that the document on December 14, 2020, for as preliminary. Department of Veteran Affairs (VA) publication. High Risk List Action Plan—Managing III. Request for Comment Risks and Improving VA Health Care Jeffrey M. Martin, Public comment is requested on all report to the U.S. Government Assistant Director, Office of Regulation Policy aspects of this joint notice. Comment is Accountability Office (GAO) is available & Management, Office of the Secretary, specifically invited on: for public review at https://www.va.gov/ Department of Veterans Affairs. (a) Whether the proposed revisions to performance/. The March 2020 [FR Doc. 2020–27939 Filed 12–17–20; 8:45 am] the collections of information that are document is VA’s action plan for BILLING CODE 8320–01–P

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