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FDIC Federal Register Citations

[Federal Register: February 26, 1998 (Volume 63, Number 38)]
[Page 9900-9904]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
Office of the Comptroller of the Currency
Federal Reserve System
Federal Deposit Insurance Corporation
Agency Information Collection Activities: Submission for OMB 
Review; Joint Comment Request
AGENCIES: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of Governors of the Federal Reserve System (Board); and Federal 
Deposit Insurance Corporation (FDIC).
ACTION: Joint notice of information collections submitted to OMB for 
review and approval under the Paperwork Reduction Act of 1995.
SUMMARY: On October 2, 1997, the OCC, the Board, and the FDIC (the 
agencies) requested public comment for 60 days on proposed revisions to 
the Consolidated Reports of Condition and Income (Call Report), which 
are currently approved collections of information. After considering 
the comments the agencies received, the Federal Financial Institutions 
Examination Council (FFIEC), of which the agencies are members, made 
several modifications to the proposed revisions.
    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 (44 U.S.C. chapter 35), the OCC, the Board, and the FDIC may 
not conduct or sponsor, and the respondent is not required to respond 
to, an information collection that has been extended, revised, or 
implemented on or after October 1, 1995, unless it displays a currently 
valid Office of Management and Budget (OMB) control number. Comments 
are invited on: (a) Whether the collections of information are 
necessary for the proper performance of the agencies' functions, 
including whether the information has practical utility; (b) the 
accuracy of the agencies' estimates of the burden of the information 
collections, 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 the 
collections on respondents, including through the use of automated 
collection techniques or other forms of information technology; and (e) 
estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.
DATES: Comments must be submitted on or before March 30, 1998.
ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments, which should refer to the OMB 
control number(s), will be shared among the agencies.
    Written comments should be submitted to the Communications 
Division, Ninth Floor, Office of the Comptroller of the Currency, 250 E 
Street, S.W., Washington, D.C. 20219; Attention: Paperwork Docket No. 
1557-0081 (FAX number (202) 874-5274; Internet address: 
regs.comments@occ.treas.gov). Comments will be available for inspection 
and photocopying at that address.
    Written comments should be addressed to Mr. William W. Wiles, 
Secretary, Board of Governors of the Federal Reserve System, 20th and C 
Streets, N.W., Washington, D.C. 20551, 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, N.W. Comments received may be 
inspected in room M-P-500 between 9:00 a.m. and 5:00 p.m., except as 
provided in section 261.8 of the Board's Rules Regarding Availability 
of Information, 12 CFR 261.8(a).
    Written comments should be addressed to Robert E. Feldman,
[[Page 9901]]
Executive Secretary, Attention: Comments/OES, Federal Deposit Insurance 
Corporation, 550 17th Street, N.W., Washington, D.C. 20429. 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 7:00 
a.m. and 5:00 p.m. (Fax number: (202) 898-3838; Internet address: 
comments@fdic.gov). Comments may be inspected and photocopied in the 
FDIC Public Information Center, Room 100, 801 17th Street, N.W., 
Washington, D.C. between 9:00 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 Hunt, Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 3208, Washington, D.C. 20503.
FOR FURTHER INFORMATION CONTACT: A copy of the proposed revised 
collection of information may be requested from any of the agency 
clearance officers whose names appear below.
    Jessie Gates, OCC Clearance Officer, (202) 874-5090, Legislative 
and Regulatory Activities Division, Office of the Comptroller of the 
Currency, 250 E Street, S.W., Washington, D.C. 20219.
    Mary M. McLaughlin, Board Clearance Officer, (202) 452-3829, 
Division of Research and Statistics, Board of Governors of the Federal 
Reserve System, 20th and C Streets, N.W., Washington, D.C. 20551. 
Telecommunications Device for the Deaf (TDD) users may contact Diane 
Jenkins, (202) 452-3544, Board of Governors of the Federal Reserve 
Systems, 20th and C Streets, N.W., Washington, D.C. 20551.
    Steven F. Hanft, FDIC Clearance Officer, (202) 898-3907, Office of 
the Executive Secretary, Federal Deposit Insurance Corporation, 550 
17th Street N.W., Washington, D.C. 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 (Call 
    Form Number: FFIEC 031, 032, 033, 034.\1\
    \1\ The FFIEC 031 report form is filed by banks with domestic 
and foreign offices. The FFIEC 032 report form is filed by banks 
with domestic offices only and total assets of $300 million or more. 
The FFIEC 033 report form is filed by banks with domestic offices 
only and total assets of $100 million or more but less than $300 
million. The FFIEC 034 report form is filed by banks with domestic 
offices only and total assets of less than $100 million.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Type of Review: Revisions of currently approved collections.
    For OCC:
    OMB Number: 1557-0081.
    Estimated Number of Respondents: 2,700 national banks.
    Estimated Time per Response: 39.92 hours.
    Estimated Total Annual Burden: 431,164 hours.
    For Board:
    OMB Number: 7100-0036.
    Estimated Number of Respondents: 1,002 state member banks.
    Estimated Time per Response: 45.80 hours.
    Estimated Total Annual Burden: 183,566 hours.
    For FDIC:
    OMB Number: 3064-0052.
    Estimated Number of Respondents: 6,131 insured state nonmember 
    Estimated Time per Response: 29.67 hours.
    Estimated Total Annual Burden: 727,672 hours.
    The estimated time per response in 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 400 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 banks). Except for select sensitive 
items, this information collection is not given confidential treatment. 
Small businesses (i.e., small banks) are affected.
    Banks file Consolidated Reports of Condition and Income with the 
agencies each quarter for the agencies' use in monitoring the condition 
and performance of reporting banks and the industry as a whole. Call 
Reports are also used to calculate banks' deposit insurance and 
Financing Corporation assessments and for monetary policy and other 
public policy purposes.
Current Actions
    Revisions initially proposed for the Call Report consisted of: 
reducing the frequency for reporting ``Preferred deposits'' and 
reducing the level of detail in the trading assets and liabilities 
schedule filed by larger banks; replacing existing items for ``High-
risk mortgage securities'' and ``Structured notes'' with items for 
securities with significant price volatility; adding new items for 
reporting on transactions with affiliates, low level recourse 
transactions, and (for larger banks) capital requirements for market 
risk; clarifying the reporting requirements relating to allowances and 
provisions for credit losses; changing the reporting basis used for 
reporting holdings of available-for-sale securities in the domestic 
office assets and liabilities schedule completed by banks with foreign 
offices; and modifying the categorization of securitized consumer loans 
for the purchase of certain types of vehicles in two items collected 
annually from larger banks.
    After considering the comments, the FFIEC decided not to proceed 
with the proposed changes relating to securities with significant price 
volatility and transactions with affiliates at this time. The FFIEC 
also is revising the instructions for reporting industrial development 
bonds for conformity with a bank's other public reporting. The comments 
on the initial proposal and the changes made in response to the 
comments are discussed below.
Discussion of Comments Received and Changes Made
    On October 2, 1997, the FDIC, the OCC, and the Board jointly 
published a notice soliciting comments for 60 days on proposed 
revisions to the Call Report (62 FR 51715). The notice described the 
specific changes that the agencies, with the approval of the FFIEC, 
were proposing to implement as of March 31, 1998.
    In response to this notice, the FDIC, the OCC, and the Board 
collectively received 14 comment letters: 1 from a community bank, 9 
from large banks, and 4 bankers' associations. In general, most of the 
commenters that specifically addressed the revisions to the Call Report 
that are being submitted for OMB review were supportive. On the other 
hand, those commenters who discussed the proposed changes relating to 
securities with significant price volatility and transactions with 
affiliates, which the agencies are not currently planning to implement, 
disagreed with those parts of the proposal. Some commenters urged the 
FFIEC and the agencies to pursue
[[Page 9902]]
greater reductions in reporting burden and to eliminate items not 
needed for safety and soundness purposes. Three commenters also 
indicated that the agencies should provide guidance on the regulatory 
capital treatment of certain transactions that must be recorded as 
secured borrowings under Financial Accounting Standards Board (FASB) 
Statement No. 125 because of the effect of this accounting treatment on 
the amount of assets reported on the balance sheet. The agencies and 
the FFIEC have considered all of the comments received on the proposal.
    More specific information on the comments received is presented 
    Reductions in Frequency and Detail--Four commenters specifically 
addressed the proposals to reduce the reporting frequency for the 
``Preferred deposits'' item from quarterly to annually for all banks 
and the level of detail collected on trading assets each quarter from 
large banks. Each commenter supported this proposed change. However, 
one of these four commenters also suggested that the agencies establish 
a consistent reporting date for all items collected only once each 
year, i.e., annually as of December 31. The agencies had not proposed 
to use a common reporting date for those Call Report items collected 
once each year. For many of the annual items in the Call Report that 
are reported at dates other than December 31, the agencies' decision to 
collect this information at other quarter-end dates was made in 
response to requests from banks over the years. These banks have 
indicated that it would be less burdensome for them to have the 
reporting of various annual items spread throughout the year rather 
than having them concentrated at year-end when many once-a-year tax and 
other external reporting requirements demand their attention. Thus, the 
agencies concluded that they should not change the reporting dates for 
some or all annual items to a common date without first seeking 
industry comment. The FFIEC and the agencies are implementing the 
change in reporting frequency for preferred deposits and the reduction 
in detail on trading assets as proposed.
    Investment Securities with Significant Price Volatility--Five 
commenters addressed the proposal to replace existing items on ``High-
risk mortgage securities'' and ``Structured notes'' with items covering 
certain mortgage-backed securities and all other securities whose price 
volatility exceeds a specified threshold level under a specified 
interest rate scenario. This reporting change was intended to enhance 
the Call Report data used in the monitoring of interest rate risk. 
However, the proposal did not describe the specific test that banks 
would have to use to measure price volatility for purposes of the 
revised items. Three of the five commenters compared this proposed 
reporting change to the proposed Supervisory Policy Statement on 
Investment Securities and End-User Derivatives Activities which the 
FFIEC had issued for comment on October 3, 1997 (21 FR 51862). These 
commenters indicated that the proposed Call Report items with their 
specific test for significant price volatility are inconsistent with 
the proposed FFIEC supervisory policy statement which would eliminate 
specific ``high-risk'' tests in favor or broader risk management 
guidance. According to these commenters, stress test requirements 
removed by the proposed supervisory policy should not be reinstated 
through Call Report requirements.
    The fourth commenter expressed concern about not having the 
opportunity to comment on the specific price volatility test to be used 
for reporting the revised items. This commenter stated that the need to 
use a specific price test will require systems changes and therefore 
the test must be defined well in advance of the effective date of 
revised items. This commenter and the fifth commenter indicated that 
the specific price volatility test should be issued for public comment 
to ensure that the test does not result in excessive reporting burden.
    After considering the comments, the agencies and the FFIEC decided 
not to implement the proposed Call Report change in 1998. The existing 
items on ``high-risk mortgage securities'' and ``structured notes'' 
will continue to be collected during 1998. Changes to these items can 
be reconsidered for implementation at some future date after the 
industry has had an opportunity for notice and comment on a more 
specific proposal. In the interim, the agencies' staffs will study 
alternatives for obtaining data on highly price sensitive securities, 
including the related reporting burden, based on how such data is 
intended to be used in the agencies' monitoring systems and interest 
rate risk testing procedures.
    Transactions Between Banks and Their Affiliates--The agencies 
proposed to add four new items to the Call Report that would provide 
data on a bank's ``covered transactions'' (loans or extensions of 
credit and other transactions that expose that expose the bank to risk) 
with affiliates. Section 23A of the Federal Reserve Act regulates 
certain covered transactions in order to safeguard the resources of 
banks against misuse for the benefit of organizations under common 
control with the bank. The four proposed items would collect data on 
the quarter-end amount and the quarter's maximum amount of covered 
transactions with transactions subject to Section 23A's collateral 
requirements and those not subject to the collateral requirements 
reported separately.
    All eight of the commenters that addressed this proposed reporting 
change opposed it. These commenters were concerned about the additional 
reporting burden of the proposed items, especially the items collecting 
data on the maximum amount of covered transactions during the quarter, 
and did not believe the benefit of the new information would be 
commensurate with the additional burden. They stated that compliance 
with Section 23A can be monitored more efficiently through the 
examination process, which is currently how the agencies evaluate a 
bank's transactions with affiliates. One commenter noted that the 
agencies had not presented evidence to show that compliance with this 
statutory requirement has become a serious problem. Another stated that 
if compliance is a problem at a few banks, the agencies should resolve 
this matter with those banks individually rather than by adding new 
reporting requirements for all banks.
    One commenter suggested that, if the agencies decide to collect 
data on affiliate transactions in the Call Report, banks should report 
only the quarter-end amounts to limit reporting burden. Two other 
commenters recommended that, if the data must be reported, that the 
reporting requirement apply only if covered transactions exceed a 
specified amount. Two commenters also urged the agencies to treat 
affiliate transaction information, if it were to be reported at all, as 
    After considering the comments, the FFIEC decided that the agencies 
should not proceed with the implementation of the proposed affiliate 
transaction items at this time. Further consideration will be given to 
alternative methods for the collection of information related to 
Section 23A. Moreover, evaluating the risk of a bank's transactions 
with its affiliates and its compliance with Section 23A will continue 
to be an important element of the agencies' examination process.
    Reporting of Low Level Recourse Transactions for Risk-Based Capital 
Purposes--Under the agencies' risk-based capital standards, the amount 
of risk-based capital that must be maintained for assets transferred 
with limited recourse should not exceed the maximum amount of recourse 
for which
[[Page 9903]]
a bank is contractually liable under the recourse agreement. The low 
level recourse rule also may apply to sales and securitizations of 
assets in which contractual cash flows (e.g., interest-only strips 
receivable and so-called spread accounts), retained subordinated 
interests, or other assets (e.g., collateral invested amounts or cash 
collateral accounts) act as credit enhancements.
    Current Call Report instructions require a bank to report its low 
level recourse transactions in Schedule RC-R--Regulatory Capital using 
the so-called ``gross-up'' method. In general, this method requires the 
bank to multiply the maximum amount of its recourse exposure by the 
reciprocal of the full effective minimum risk-based capital requirement 
for the assets transferred and to report the resulting dollar amount as 
an off-balance sheet credit equivalent amount in the risk weight 
category appropriate to the assets transferred. However, another method 
of handling the bank's low level recourse transactions--the so-called 
``direct reduction'' method--in many cases results in a more accurate 
measure of the bank's risk-based capital ratios, but this method is not 
currently permitted. Therefore, the agencies proposed to allow banks to 
use the ``direct reduction'' method. Under the direct reduction method, 
a bank generally would reduce its risk-based capital by the maximum 
amount of its recourse exposure (and would exclude this amount from its 
assets if the exposure were in the form of an on-balance sheet asset). 
Banks electing this reporting method would begin to complete a new 
Schedule RC-R item to disclose the amount by which assets and total 
risk-based capital have been reduced through the application of the 
direct reduction method.
    Half of the commenters addressed this proposed change and all of 
them supported it. One commenter requested that the agencies ensure 
that the Call Report instructions for low level recourse transactions 
clearly describe the mechanics of the risk-based capital calculation 
under each method. The FFIEC and the agencies are adding an item for 
the direct reduction method as proposed and will provide appropriate 
instructions for reporting low level recourse exposures.
    Capital Requirements for Market Risk--Effective January 1, 1998, 
banks with substantial trading activity must hold capital based on 
their market risk exposure. The market risk rule supplements the risk-
based capital ratio calculations that focus principally on credit risk 
and adjusts both the risk-based capital ratio denominator and 
numerator. To enable the agencies and other users of the Call Report to 
calculate the risk-based capital ratios of those banks subject to the 
market risk rule, the agencies proposed to add items for ``Market risk 
equivalent assets'' and ``Tier 3 capital'' to Schedule RC-R--Regulatory 
Capital on the FFIEC 031 and 032 report forms only.
    Two commenters addressed the market risk proposal. One supported 
the proposed changes while the second did not express an overall 
opinion. However, the second commenter observed that the Board's 
interim guidance to bank holding companies for the reporting on the 
market risk in the FR Y-9C bank holding company report indicates that 
``covered positions,'' \2\ except those that must also be risk weighted 
for credit risk, should be reported as zero percent risk weight assets, 
while the agencies' proposal stated that these covered positions should 
be reported in the Call Report in ``On-balance sheet asset values 
excluded from and deducted in the calculation of the risk-based capital 
ratio'' (Schedule RC-R, item 8) and not as zero percent risk weight 
assets. The agencies acknowledge this differing treatment for covered 
positions in the two types of reports. This difference arises because 
of the different structures of the regulatory capital schedules in 
these two reports: the bank holding company schedule does not have an 
item comparable to item 8 of the bank schedule, which is used to 
capture the amount of all on-balance sheet assets that are not risk-
weighted for credit risk. The covered positions that are on-balance 
sheet assets possess this characteristic. Nevertheless, the difference 
in report structures has no impact on the overall calculation of risk-
based capital.
    \2\ The term ``covered positions'' means all positions in the 
trading account, and all foreign exchange and commodity positions, 
whether or not in the trading account.
    This commenter also recommended that, with the advent of capital 
requirements for market risk, the Call Report instructions should be 
reworded to indicate that a bank's allowance for credit losses can be 
included in Tier 2 capital up to a maximum of 1.25 percent of risk-
weighted assets plus market risk equivalent assets. The FFIEC and the 
agencies agree with this recommendation and will revise the 
instructions accordingly.
    Reporting by Banks With Foreign Offices of Investment Securities 
Holdings in the Domestic Office Assets and Liabilities Schedule--The 
agencies proposed to require banks with foreign offices that file the 
FFIEC 031 version of the Call Report forms to report all investment 
securities held in domestic offices on a cost basis in items 10 through 
17 of Schedule RC-H--Selected Balance Sheet Items for Domestic Offices. 
At present, these investment securities are reported in these Schedule 
RC-H items on the same basis as they are reported on these banks' 
consolidated balance sheet (Schedule RC), i.e., held-to-maturity 
securities are reported at amortized cost while available-for-sale 
securities are reported at fair value.
    One commenter stated that this proposed change is contrary to 
generally accepted accounting principles (GAAP). This commenter also 
noted that, although the amortized cost data for these securities are 
available, its existing reporting systems compile cost data only on a 
consolidated basis and not for domestic offices only. Therefore, for 
this commenter, the proposed reporting change would require a costly 
and time consuming collection effort.
    While the agencies recognize that adopting this reporting change 
will cause some banks to adjust their reporting systems, the FFIEC and 
the agencies are implementing this change as proposed because the 
revised securities data will better satisfy agency data needs, thereby 
increasing the utility of the domestic office securities data. These 
data are used in analyses and comparisons which also include data on 
securities that are held domestically by nonbank sectors and reported 
on a cost basis. Thus, the uses for which these Call Report data are 
collected are not a function of their balance sheet categorization and 
accounting basis under GAAP.
    Allowance for Credit Losses--Accounting guidance issued by the 
American Institute of Certified Public Accountants in 1996 clarified 
that a bank must allocate its allowance for credit losses between on-
balance sheet financial instruments and off-balance sheet credit 
exposures. Previously, these allowance components often were reported 
in the aggregate on the balance sheet in the allowance for loan and 
lease losses. In 1997, the FFIEC advised banks to allocate their 
allowance for credit losses on the Call Report balance sheet consistent 
with their allocation methodology for other financial reporting 
purposes. Banks were further advised to aggregate these components of 
the allowance for credit losses when completing Schedule RI-B, part 
II--Changes in Allowance for Loan and Lease Losses and for risk-based 
capital purposes.
    The agencies proposed to retain this method of reporting the 
allowance for
[[Page 9904]]
credit losses on the balance sheet, in Schedule RI-B, and in the 
regulatory capital schedule (Schedule RC-R). For consistency, the 
agencies also proposed to recaption the items labelled ``Provision for 
loan and lease losses'' as ``Provision for credit losses'' in the 
income statement (Schedule RI) and in Schedule RI-B. Two commenters 
addressed this proposal. One supported it while the second favored only 
the risk-based capital treatment of the allowance for credit losses, 
preferring to have Schedule RI-B, part II, cover only the allowance for 
loan and lease losses. The FFIEC and the agencies considered this 
suggestion, but did not accept it. There has been an absence of bank 
objections during 1997 to the reporting method which the agencies 
proposed to retain for Schedule RI-B, part II.
    Reporting of Securitized Consumer Loans for Vehicle Purchases--The 
agencies proposed to revise the instructions for reporting securitized 
consumer loans so that loans for the purchase of pickup trucks, other 
light trucks, and vans for personal use would be included in ``Loans to 
purchase private passenger automobiles'' rather than in ``All other 
consumer credit.'' The only commenter commenting on this instructional 
change agreed with the change. The FFIEC and the agencies are 
implementing the change as proposed.
    Categorization of Industrial Development Bonds on the Balance 
Sheet--In September 1997, the FFIEC printed and distributed revised, 
updated Call Report instruction books to all banks and invited comments 
on the accuracy, adequacy, and clarity of the revised instructions. One 
commenter recommended that the agencies simplify the instructions for 
reporting industrial development bonds (IDBs) in the Call Report. More 
specifically, the commenter suggested that the agencies replace the 
existing Call Report instructions governing whether a bank should 
report its IDBs as securities or as loans with instructions stating 
that IDBs should be reported as securities or as loans on the Call 
Report consistent with the manner in which the bank reports these 
instruments on its balance sheet for other financial reporting 
purposes. The FFIEC and the agencies agree and are revising the 
instructions accordingly.
    Other Comments--Three commenters discussed the effect of the 
provisions of FASB Statement No. 125, ``Accounting for Transfers and 
Servicing of Financial Assets and Extinguishments of Liabilities,'' 
that took effect for transfers occurring after December 31, 1997. These 
newly effective provisions relate to the accounting for collateral and 
secured borrowings, repurchase agreements, securities lending, and 
similar transactions. If certain conditions are met, collateral 
received by a creditor must be recorded as an asset on the creditor's 
balance sheet. Under previous GAAP, the collateral may not have been 
recorded on the creditor's balance sheet. As a result of this change in 
accounting standards, some banks will see their total on-balance sheet 
assets increase, which would increase the denominators in the 
calculation of these banks' leverage capital and risk-based capital 
ratios. The effect of these provisions of FASB Statement No. 125 will 
appear for the first time in the March 31, 1998, Call Report.
    These commenters stated that regulatory capital ratios should be 
computed using a pre-FASB Statement No. 125 approach to collateralized 
transactions so that regulatory capital is not allocated twice for the 
same transaction. These commenters recommended that the FFIEC change 
the Call Report instructions in 1998 to say that amounts added to the 
balance sheet because of the collateral provisions of FASB Statement 
No. 125 should be excluded from average total assets and risk-weighted 
assets. When it considered these comments, the FFIEC concluded that 
this was primarily a regulatory capital issue that should be addressed 
as a supervisory matter under the FFIEC's Task Force on Supervision. 
The Task Force on Supervision has requested that its capital working 
group evaluate the issue these commenters have raised.
    Five commenters indicated that the proposed changes do not 
significantly reduce the reporting burden imposed by the Call Report. 
They urged the FFIEC and the agencies to do more to reduce burden, 
eliminate items not related to safety and soundness, and work to 
fulfill the mandate of Section 307 of the Riegle Community Development 
and Regulatory Improvement Act of 1994. Section 307 requires the four 
federal banking and thrift agencies to work jointly to develop a single 
form for the filing of core information by banks, savings associations, 
and bank holding companies. It also directs the agencies to review the 
information they collect from these institutions that supplements the 
core information and eliminate those reporting requirements that are 
not warranted for safety and soundness or other public purposes. Thus, 
it is clear from Section 307 that Call Report data should not be 
collected exclusively to meet the agencies' safety and soundness needs. 
Nevertheless, the agencies regularly review the existing Call Report 
requirements in order to identify items that are no longer sufficiently 
useful to warrant their continued collection. Since 1995 these reviews 
have led to the elimination of numerous items and reductions in the 
level of detail in several areas. For 1998, as discussed above, the 
FFIEC and the agencies also decided not to implement certain proposed 
revisions about which commenters' expressed concern about burden.
    In addition to eliminating a number of items that were considered 
unnecessary for safety and soundness and other public purposes, the 
FFIEC and the agencies have, as part of their Section 307 efforts, 
adopted GAAP as the reporting basis for the Call Report, combined the 
four sets of Call Report instructions into a single comprehensive set 
which includes an index, made the Call Report forms and instructions 
available on the Internet, and implemented an electronic filing 
requirement for the Call Report. The FFIEC and the agencies are 
continuing to analyze the specific uses of the individual Call Report 
items in order to ascertain their relative importance to the agencies 
and assist in the agencies' ongoing effort to eliminate information 
with the least practical utility. Furthermore, the banking and thrift 
agencies are continuing their work on a common core report that will 
satisfy the requirements of Section 307.
Board of Governors of the Federal Reserve System, February 17, 1998.
William W. Wiles,
Secretary of the Board.
    Dated: February 17, 1998.
Karen Solomon,
Director, Legislative and Regulatory Activities Division, Office of the 
Comptroller of the Currency.
    Dated at Washington, DC, this 20th day of February, 1998.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 98-4859 Filed 2-25-98; 8:45 am]
BILLING CODE 4810-33-M, 6210-01-M, 6714-01-M

Last Updated 02/26/1998 regs@fdic.gov