Comments will be
available for inspection and photocopying at the OCC's Public
Information Room, 250 E Street, SW., Washington, DC 20219. Appointments
for inspection of comments may be made by calling (202) 874-5043.
Board: Written comments should be addressed to Jennifer J. Johnson,
Secretary, Board of Governors of the Federal Reserve System, 20th and C
Streets, NW., Washington, DC 20551, submitted by electronic mail to
or delivered to the Board's mail room between 8:45 a.m. and 5:15 p.m., and to the security
control room outside of those hours. Both the mail room and the security control
room are accessible from the courtyard entrance on 20th Street between
Constitution Avenue and C Street, NW. Comments received may be
inspected in room M-P-500 between 9 a.m. and 5 p.m., except as provided
in section 261.12 of the Board's Rules Regarding Availability of
Information, 12 CFR 261.12(a).
FDIC: Written comments should be addressed to Robert E. Feldman,
Executive Secretary, Attention: Comments/OES, Federal Deposit Insurance
Corporation, 550 17th Street, NW., Washington, DC 20429. All comments
should refer to ``Consolidated Reports of Condition and Income.''
Comments may be hand-delivered to the guard station at the rear of the
550 17th Street Building (located on F Street), on business days
between 7 a.m. and 5 p.m. [FAX number: (202) 898-3838; Internet
address: email@example.com]. Comments may be
inspected and photocopied
in the FDIC Public Information Center, Room 100, 801 17th Street, NW.,
Washington, DC, between 9 a.m. and 4:30 p.m. on business days.
A copy of the comments may also be submitted to the OMB desk
officer for the agencies: Alexander T. Hunt, Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 3208, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Sample copies of the revised Call
Report forms for March 31, 2002, can be obtained at the FFIEC's web
site www.ffiec.gov). Sample copies of the revised Call
also may be requested from any of the agency clearance officers whose
names appear below.
OCC: Jessie Dunaway, OCC Clearance Officer, or Camille Dixon, (202)
874-5090, Legislative and Regulatory Activities Division, Office of the
Comptroller of the Currency, 250 E Street, SW., Washington, DC 20219.
Board: Mary M. West, Chief, Financial Reports Section, (202) 452-
3829, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, 20th and C Streets, NW., Washington, DC 20551.
Telecommunications Device for the Deaf (TDD) users may contact Diane
Jenkins, (202) 452-3544, Board of Governors of the Federal Reserve
System, 20th and C Streets, NW., Washington, DC 20551.
FDIC: Tamara R. Manly, Management Analyst (Regulatory Analysis),
(202) 898-7453, Office of the Executive Secretary, Federal Deposit
Insurance Corporation, 550 17th Street NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: Request for OMB approval to extend, with
revision, the following currently approved collections of information:
Report Title: Consolidated Reports of Condition and Income.
Form Number: FFIEC 031 (for banks with domestic and foreign
offices) and FFIEC 041 (for banks with domestic offices only).
Frequency of Response: Quarterly.
Affected Public: Business or other for-profit.
OMB Number: 1557-0081.
Estimated Number of Respondents: 2,200 national banks.
Estimated Time per Response: 42.02 burden hours.
Estimated Total Annual Burden: 369,776 burden hours.
OMB Number: 7100-0036.
Estimated Number of Respondents: 978 state member banks.
Estimated Time per Response: 48.00 burden hours.
Estimated Total Annual Burden: 187,776 burden hours.
OMB Number: 3064-0052.
Estimated Number of Respondents: 5,480 insured state nonmember
Estimated Time per Response: 32.64 burden hours.
Estimated Total Annual Burden: 715,503 burden hours.
The estimated time per response is an average which varies by
agency because of differences in the composition of the banks under
each agency's supervision (e.g., size distribution of banks, types of
activities in which they are engaged, and number of banks with foreign
offices). The time per response for a bank is estimated to range from
15 to 550 hours, depending on individual circumstances.
General Description of Report
This information collection is mandatory: 12 U.S.C. 161 (for
national banks), 12 U.S.C. 324 (for state member banks), and 12 U.S.C.
1817 (for insured state nonmember commercial and savings banks). Except
for selected items, this information collection is not given
confidential treatment. Small businesses (i.e., small banks) are
Banks file Call Reports with the agencies each quarter for the
agencies' use in monitoring the condition, performance, and risk
profile of reporting banks and the industry as a whole. In addition,
Call Reports provide the most current statistical data available for
evaluating bank corporate applications such as mergers, for identifying
areas of focus for both on-site and off-site examinations, and for
monetary and other public policy purposes. Call Reports are also used
to calculate all banks' deposit insurance and Financing Corporation
assessments and national banks' semiannual assessment fees.
On October 18, 2001, the OCC, the Board, and the FDIC jointly
published a notice soliciting comments for 60 days on proposed
revisions to the Call Report (66 FR 52973). The notice described the
specific changes that the agencies, with the approval of the FFIEC,
were proposing to implement as of March 31, 2002. The proposed
Separating the existing balance sheet (Schedule RC) items
for federal funds sold and securities resale agreements and for federal
funds purchased and securities repurchase agreements into two asset and
two liability items and adding a new item to Schedule RC-M, Memoranda,
for the amount of overnight Federal Home Loan Bank advances included in
federal funds purchased;
Adding new items for:
The fair value of credit derivatives to Schedule RC-L,
Derivatives and Off-Balance Sheet Items;
Year-to-date merchant credit card sales volume for
acquiring banks and for agent banks with risk to Schedule RC-L; and
Loans and leases held for sale that are past due 30-89
days, past due 90 days or more, and in nonaccrual status to the past
due and nonaccrual schedule (Schedule RC-N);
Breaking down the existing items for past due and
nonaccrual closed-end 1-4 family residential mortgages in Schedule RC-N
and for the charge-offs and recoveries of such mortgages in Schedule
RI-B, part I, into separate items for first lien and junior lien
Revising the manner in which banks report on the estimated
amount of their uninsured deposits in the deposit insurance assessments
schedule (Schedule RC-O) and, for banks with foreign offices, modifying
the scope of the existing items for the number and amount of deposit
accounts in domestic offices to include accounts in insured branches in
Puerto Rico and U.S. territories and possessions;
Inserting a subtotal in the Tier 1 capital computation in
Schedule RC-R, Regulatory Capital, to facilitate the calculation of
certain disallowed assets and adding a new item to the schedule in
which banks with financial subsidiaries would report the adjustment
they must make to Tier 1 capital for their investment in these
Splitting the existing income statement (Schedule RI) item
for intangible asset amortization expense into separate items for
impairment losses on goodwill and for the
amortization expense and impairment losses on other intangible assets
on account of a new accounting standard; and
Simplifying the disclosure of write-downs arising from
transfers of loans to a held-for-sale account in the changes in
allowance for loan and lease losses schedule (Schedule RI-B, part II).
After considering the comments the agencies received, the FFIEC and
the agencies decided to modify certain aspects of the proposal relating
to the reporting of federal funds transactions and securities resale/
repurchase agreements and to proceed with all of the other revisions
that had been proposed.
In addition, on November 29, 2001, the agencies published a final
rule revising the regulatory capital treatment of recourse arrangements
and direct credit substitutes, including residual interests and credit-
enhancing interest-only strips, as well as asset-backed and mortgage-
backed securities (66 FR 59613). This final rule took effect on January
1, 2002. Any transactions settled on or after that date are subject to
the rule. However, for transactions settled before January 1, 2002,
that result in increased capital requirements under the final rule,
banks may delay the application of the final rule to those transactions
until December 31, 2002. In response to this final rule, the FFIEC and
the agencies are revising the instructions for reporting these types of
exposures in Schedule RC-R, Regulatory Capital, so that the capital
calculations in this schedule are consistent with the amended
regulatory capital standards.
Type of Review: Revisions of currently approved collections.
In response to their October 18, 2001, notice, the agencies
received two comment letters, one from the New York Clearing House
(NYCH), an association of 11 major commercial banks, and another from
the Federal Home Loan Bank (FHLB) of Atlanta. The agencies and the
FFIEC have considered the comments received from these two respondents.
Federal Funds Transactions and Securities Resale/Repurchase Agreements
As indicated above, the agencies originally proposed to separate
the existing balance sheet (Schedule RC) items for ``Federal funds sold
and securities purchased under agreements to resell'' and for ``Federal
funds purchased and securities sold under agreements to repurchase''
into two asset and two liability items. As proposed, the reporting of
amounts as ``Federal funds sold'' (the asset item) and ``Federal funds
purchased'' (the liability item) would have been based on the
longstanding definition of ``federal funds transactions,'' i.e., the
lending and borrowing of immediately available funds for one business
day or under a continuing contract, regardless of the nature of the
contract or of the collateral, if any. Under this definition,
securities resale/repurchase agreements involving the receipt of
immediately available funds that mature in one business day or roll
over under a continuing contract are considered federal funds
transactions. In addition, because overnight advances that a bank
obtains from a Federal Home Loan Bank also met the definition of
federal funds purchased, the agencies further proposed to add a new
item to Schedule RC-M, Memoranda, in order to identify the amount of
these overnight Federal Home Loan Bank advances. All other Federal Home
Loan Bank advances are reported as part of ``Other borrowed money.''
The NYCH cited several concerns with this aspect of the agencies'
proposal. The NYCH noted that the federal funds market, which generally
involves transactions that are not collateralized, is different from
the securities resale/repurchase markets, which involves collateralized
transactions. As a result, its member banks typically manage these two
types of transactions separately. Moreover, their member banks'
existing data collection systems do not separately identify overnight
securities resale/repurchase agreements and reclassify them as federal
funds transactions, which the proposed Call Report change would require
their systems to do. The NYCH also recommended that federal funds
transactions should be limited to transactions in domestic offices,
noting that if this were done, conforming changes would need to be made
to the related items in Schedule RC-H, Selected Balance Sheet Items for
The FHLB of Atlanta supported the agencies' proposal to have banks
report federal funds transactions separately from securities resale/
repurchase agreements on the balance sheet and to add an item to
Schedule RC-M for overnight Federal Home Loan Bank advances. However,
the FHLB of Atlanta questioned the treatment of overnight Federal Home
Loan Bank advances as federal funds purchased. Because all other
Federal Home Loan Bank advances are reported as part of ``Other
borrowed money'' on the Call Report balance sheet, the FHLB of Atlanta
suggested that, at present, banks may be including overnight advances
in ``Other borrowed money'' instead of reporting them as federal funds
purchased. Therefore, the FHLB of Atlanta urged the agencies to clarify
this matter in the Call Report instructions.
After considering these comments, the FFIEC and the agencies have
decided to modify their original proposal to address the concerns that
were raised. The FFIEC and the agencies will proceed with the
separation of the existing asset and liability items on Schedule RC,
Balance Sheet, into federal funds items and securities resale/
repurchase agreement items. In so doing, however, the definition of
``federal funds transactions'' in the Call Report instructions will be
revised. As revised, federal funds sold and purchased will be limited
to transactions in domestic offices only and will not include:
Any securities resale/repurchase agreements,
Overnight Federal Home Loan Bank advances, or
Lending and borrowing transactions in foreign offices
involving immediately available funds with an original maturity of one
business day or under a continuing contract.
This definitional revision eliminates the need for the proposed
item for overnight Federal Home Loan Bank advances because they will be
included in ``Other borrowed money'' on the balance sheet. As a
consequence, these advances will also be reported in the existing
maturity distribution of ``Other borrowed money'' in Schedule RC-M as
Federal Home Loan Bank advances with a remaining maturity of one year
On the FFIEC 031 report form for banks with foreign offices,
lending and borrowing transactions in foreign offices involving
immediately available funds with an original maturity of one business
day or under a continuing contract that are not securities resale/
repurchase agreements will begin to be reported on the Call Report
balance sheet in ``Loans and leases, net of unearned income'' and
``Other borrowed money,'' respectively. In addition, since federal
funds transactions will include only transactions in domestic offices,
the scope of two items on Schedule RC-H will be modified so that they
exclude federal funds transactions. As a result, revised items 3 and 4
of Schedule RC-H will cover only ``Securities purchased under
agreements to resell'' and ``Securities sold under agreements to
repurchase'' in domestic offices, respectively.
Merchant Credit Card Sales Volume
The agencies proposed to add new items to the Call Report on year-
to-date merchant credit card sales volume. The NYCH indicated that it
was uncertain as to how the agencies would use the data on merchant
credit sales volume to assess risk, particularly with respect to
capital, and urged the agencies ``not to jump to conclusions about the
risks represented by the data.''
The agencies recognize that the sales data are but one indicator of
risk associated with the merchant acquiring business. The sales data
are intended to provide information for off-site monitoring of the risk
profiles of individual institutions and will enable the agencies to
identify and monitor institutions involved in and entering this
business. Significant changes in the sales volume at individual
institutions would warrant supervisory follow-up to determine whether
adequate risk management processes and controls are in place for the
higher level of processing activity. Nevertheless, this follow-up
activity, as well as assessments of capital adequacy, would consider a
variety of factors besides the sales volume data. In addition, any
changes to the agencies' regulatory capital standards to address the
off-balance sheet risks arising from merchant processing activities
would be subject to formal rulemaking.
Reporting Uninsured Deposits
The agencies proposed to revise the approach by which banks report
an estimate of their uninsured deposits in Call Report Schedule RC-O,
Other Data for Deposit Insurance and FICO Assessments. Under the
revised approach, all banks would be required to provide an estimate of
these deposits subject to certain reporting criteria that are intended
to permit banks to take advantage of automated systems to the extent
that they are in place today and as they improve over time. As
proposed, the caption for this item would have been changed from
``Estimated amount of uninsured deposits of the bank'' to ``Uninsured
The NYCH stated that the amount banks report in the revised item
should still be viewed as a ``best estimate'' and recommended that the
current caption be maintained. The FFIEC and the agencies have agreed
to retain the words ``estimated amount'' in the caption.
The NYCH also observed that, although the reporting criteria for
the estimation process for the revised item relate to specific types of
deposits, ``different banks will have varying degrees of success in
obtaining the information required and therefore the results may not be
as consistently derived as intended.'' The NYCH added that this could
lead to different levels of performance within an individual bank and
across all banks as well as different levels of individual bank
performance over time as banks improve their automated systems. The
NYCH acknowledged that the proposal recognized that this would be a
likely outcome. In this regard, the FDIC is more interested at present
in obtaining uninsured deposit estimates from banks that are better
than the estimates that are developed under the current reporting
approach than about the consistency of the methods banks use to
determine the estimate under the revised approach. Accordingly, the
instructions for the revised item for estimated uninsured deposits will
state that the agencies recognize that a bank may have multiple
automated information systems for its deposits and that the
capabilities of these systems to provide an estimate of uninsured
deposits will differ from bank to bank at any point in time and, within
an individual institution, may improve over time.
Request for Comment
Comments are invited on:
(a) Whether the proposed revisions to the Call Report collections
of information are necessary for the proper performance of the
agencies' functions, including whether the information has practical
(b) The accuracy of the agencies' estimates of the burden of the
information collections as they are proposed to be revised, including
the validity of the methodology and assumptions used;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of information collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or start up costs and costs of operation,
maintenance, and purchase of services to provide information.
Comments submitted in response to this notice will be shared among
the agencies. All comments will become a matter of public record.
Written comments should address the accuracy of the burden estimates
and ways to minimize burden as well as other relevant aspects of the
information collection request.
Dated: February 21, 2002.
Mark J. Tenhundfeld,
Assistant Director, Legislative and Regulatory Activities Division,
Office of the Comptroller of the Currency.
Board of Governors of the Federal Reserve System, February 22,
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, D.C., this 22nd day of February, 2002.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
[FR Doc. 02-4741 Filed 2-27-02; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P