Financial Institution Letters
| Federal Financial Institutions Examination Council
3501 Fairfax Drive - Room B7081a - Arlington, VA 22226-3550 - (703) 516-5588 - FAX (703) 562-6446 - http://www.ffiec.gov
May 6, 2019
|DEPOSITORY INSTITUTION REPORTS
|TO:||CHIEF EXECUTIVE OFFICER (also of interest to Chief Financial Officer)|
|SUBJECT:||Proposed Revisions to the Consolidated Reports of Condition and Income (Call Report) for the Proposed Community Bank Leverage Ratio|
On April 19, 2019, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency (collectively, the agencies), under the auspices of the Federal Financial Institutions Examination Council (FFIEC), published in the Federal Register for public comment proposed changes to all three versions of the Call Report (FFIEC 031, FFIEC 041, and FFIEC 051).
As described more fully in the attached Federal Register notice, the agencies' reporting proposal would introduce a new Community Bank Leverage Ratio (CBLR) schedule that would be added to Call Report Schedule RC-R. As proposed, community banks that qualify for and opt into the CBLR framework would complete Schedule RC-R, CBLR, instead of reporting regulatory capital information on existing Call Report Schedule RC-R, Parts I and II. This reporting proposal would align the Call Report with the agencies’ proposed rule that would provide a simplified alternative measure of capital adequacy, the CBLR, for certain qualifying community banks with less than $10 billion in total consolidated assets, consistent with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The agencies' Notice of Proposed Rulemaking (NPR) for the CBLR capital adequacy framework was published on February 8, 2019; the comment period for the NPR ended on April 9, 2019. The NPR is available at https://www.govinfo.gov/app/details/FR-2019-02-08/2018-27002.
The proposed revisions to the Call Report in the attached Federal Register notice also would implement reporting changes consistent with the FDIC's proposed rule to amend the deposit insurance assessment regulations to apply the CBLR framework to the deposit insurance assessment system. The FDIC published the CBLR assessments proposed rule on February 21, 2019, with a comment period that ended on April 22, 2019. The FDIC's CBLR assessments proposed rule is available at https://www.govinfo.gov/app/details/FR-2019-02-21/2019-02761.
The agencies encourage you to review the Call Report proposal for the CBLR, which has been approved by the FFIEC, and comment on those aspects of interest to you. You may send comments to any or all of the agencies by the methods described in the attached Federal Register notice. Comments must be submitted by June 18, 2019. The FFIEC and the agencies will review and consider the comments as they finalize the revisions to the Call Report. The Call Report revisions would take effect the same quarter as the effective date of the final rules on the CBLR and the related deposit insurance assessment revisions.
To help you understand how the proposed CBLR-related revisions affect the three versions of the Call Report, drafts of the proposed revisions to the report forms and instructions, including new Schedule RC-R, CBLR, are available on the FFIEC's website (https://www.ffiec.gov/ffiec_report_forms.htm) on the webpage for each report form.
Please share this letter with the individuals responsible for preparing the Call Report at your institution. For further information about the proposed Call Report revisions, institutions should contact their assigned Call Report analyst. If you do not know the analyst assigned to your institution, state member institutions should contact their Federal Reserve District Bank; national institutions, FDIC-supervised banks, and savings associations should contact the FDIC’s Data Collection and Analysis Section in Washington, D.C., by telephone at (800) 688-FDIC (3342) or email at FDICInfoReq@fdic.gov.
Judith E. Dupré
Distribution: FDIC-Supervised Banks and Savings Institutions, National Institutions, State Member Institutions, and Savings Associations