SECURITIES AND EXCHANGE COMMISSION 17 CFR Parts 210, 229, and 249 [Release No. 33-10835; 34-89835; File No. S7-02-17] RIN 3235-AL79 Update of Statistical Disclosures for Bank and Savings and Loan Registrants AGENCY: Securities and Exchange Commission. ACTION: Final rule. SUMMARY: We are adopting rules to update our statistical disclosure requirements for banking registrants. These registrants currently provide many disclosures in response to the items set forth in Industry Guide 3 (“Guide 3”), Statistical Disclosure by Bank Holding Companies, which are not Commission rules. The amendments update and expand the disclosures that registrants are required to provide, codify certain Guide 3 disclosure items and eliminate other Guide 3 disclosure items that overlap with Commission rules, U.S. Generally Accepted Accounting Principles (“U.S. GAAP”), or International Financial Reporting Standards (“IFRS”). In addition, we are relocating the codified disclosure requirements to a new subpart of Regulation S-K and rescinding Guide 3. DATES: Effective date: These final rules are effective [insert date 30 days after publication in Federal Register], except for the rescission to 17 CFR 229.801(c) and 229.802(c), which will be effective on January 1, 2023. Compliance date: See Section V for further information on transitioning to the final rules. 1 FOR FURTHER INFORMATION CONTACT: Stephanie Sullivan, Associate Chief Accountant, Division of Corporation Finance, at (202) 551-3400, U.S. Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. SUPPLEMENTARY INFORMATION: The Commission is amending 17 CFR 229.404 (“Item 404 of Regulation S-K”) under the Securities Act of 1933 (“Securities Act”)1 and the Securities Exchange Act of 1934 (“Exchange Act”);2 17 CFR 210.9-01 (“Rule 9-01 of Regulation S-X”) and 17 CFR 210.9-03 (“Rule 9-03 of Regulation S-X”) under the Securities Act and the Exchange Act; and 17 CFR 249.220f (“Form 20-F”) under the Exchange Act. In addition, the Commission is adding a new subpart, 17 CFR 229.1400 (“Item 1400 of Regulation S-K”), which will include 17 CFR 229.1401 through 17 CFR 229.1406, and rescinding 17 CFR 229.801(c) and 229.802(c) under the Securities Act and Exchange Act. 1 15 U.S.C. 77a et seq. 2 15 U.S.C. 78a et seq. 2 I. Introduction ..................................................................................................................5 II. New Subpart 1400 of Regulation S-K ...........................................................................6 A. Codification ......................................................................................................6 B. Location of Disclosure Requirements and XBRL ..............................................7 C. Scope .............................................................................................................. 10 i. Proposal .............................................................................................. 10 ii. Comments on Proposal ........................................................................ 11 iii. Final Rules .......................................................................................... 11 D. Applicability to Domestic Registrants and Foreign Registrants........................ 12 i. Proposal .............................................................................................. 12 ii. Comments on Proposal ........................................................................ 13 iii. Final Rules .......................................................................................... 15 E. Reporting Periods ............................................................................................ 17 i. Proposal .............................................................................................. 17 ii. Comments on Proposal ........................................................................ 18 iii. Final Rules .......................................................................................... 20 F. Distribution of Assets, Liabilities and Stockholders’ Equity; Interest Rate and Interest Differential (Average Balance, Interest and Yield/Rate Analysis and Rate/Volume Analysis) ................................................................................... 23 i. Proposal .............................................................................................. 23 ii. Comments on Proposal ........................................................................ 24 iii. Final Rules .......................................................................................... 25 G. Investment Portfolio ........................................................................................ 26 i. Proposal .............................................................................................. 26 ii. Comments on Proposal ........................................................................ 28 iii. Final Rules .......................................................................................... 28 H. Loan Portfolio ................................................................................................. 29 i. Proposal .............................................................................................. 29 ii. Comments on Proposal ........................................................................ 30 iii. Final Rules .......................................................................................... 31 I. Allowance for Credit Losses ........................................................................... 34 i. Proposal .............................................................................................. 34 ii. Comments on Proposal ........................................................................ 35 1 iii. Final Rules .......................................................................................... 38 iv. Proposal - New Credit Ratios Disclosure ............................................. 41 v. Comments on Proposal ........................................................................ 42 vi. Final Rules .......................................................................................... 45 J. Deposits .......................................................................................................... 50 i. Proposal .............................................................................................. 50 ii. Comments on Proposal ........................................................................ 51 iii. Final Rules .......................................................................................... 54 III. Certain Existing Guide 3 Disclosures That Would Not Be Codified in Subpart 1400 of Regulation S-K ........................................................................................................... 58 A. Return on Equity and Assets ........................................................................... 58 B. Short-Term Borrowings .................................................................................. 58 IV. Changes to Article 9 of Regulation S-X ...................................................................... 59 V. Compliance Date ........................................................................................................ 60 VI. Other Matters.............................................................................................................. 61 VII. Economic Analysis ..................................................................................................... 61 A. Introduction .................................................................................................... 61 B. Baseline .......................................................................................................... 63 i. Regulation ........................................................................................... 63 ii. Affected Registrants ............................................................................ 64 C. Economic Effects ............................................................................................ 67 i. Codified Disclosures............................................................................ 68 a. Costs and Benefits.................................................................... 68 b. Alternatives .............................................................................. 74 ii. New Credit Ratios ............................................................................... 76 iii. Not Codified Disclosures and Instructions ........................................... 79 a. Costs and Benefits.................................................................... 80 iv. Reporting Periods ................................................................................ 82 a. Costs and Benefits.................................................................... 82 b. Alternatives .............................................................................. 83 v. Scope................................................................................................... 84 a. Costs and Benefits.................................................................... 84 b. Alternatives .............................................................................. 85 2 vi. Applicability of Disclosure .................................................................. 88 a. Costs and Benefits.................................................................... 88 b. Alternatives