83_FR_18644 83 FR 18562 - Proposed Agency Information Collection Activities: Submission for OMB Review; Comment Request

83 FR 18562 - Proposed Agency Information Collection Activities: Submission for OMB Review; Comment Request

FEDERAL RESERVE SYSTEM

Federal Register Volume 83, Issue 82 (April 27, 2018)

Page Range18562-18564
FR Document2018-08839

In accordance with the requirements of the Paperwork Reduction Act of 1995 (PRA), the Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, the agencies) may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. On December 27, 2017, the Board, under the auspices of the Federal Financial Institutions Examination Council (FFIEC), requested public comment for 60 days on a proposal to extend, with revision, the Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002) and the Report of Assets and Liabilities of a Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or Agency of a Foreign (Non-U.S.) Bank (FFIEC 002S), which are currently approved collections of information. The Board published this proposal on behalf of the agencies. The proposed revisions to these reports align with corresponding changes made to the Consolidated Reports of Condition and Income (FFIEC 031, FFIEC 041, and FFIEC 051). The Consolidated Reports of Condition and Income are commonly referred to as the Call Report. The proposed revisions to the FFIEC 002 and the FFIEC 002S delete or consolidate certain items, establish certain reporting thresholds, account for changes in the accounting for equity investments, and make instructional clarifications consistent with those previously made to or currently proposed for the Call Report instructions. The proposed revisions would result in an overall reduction in burden. The comment period for this proposal ended on February 26, 2018. The Board received two comments addressing the proposed changes. After considering the comments received on the proposal, the agencies will proceed with the proposed reporting revisions to the FFIEC 002 and FFIEC 002S, while incorporating one clarification in response to a comment. These reporting revisions would take effect as of the June 30, 2018, report date. The Board is giving notice that it is sending the collection to OMB for review.

Federal Register, Volume 83 Issue 82 (Friday, April 27, 2018)
[Federal Register Volume 83, Number 82 (Friday, April 27, 2018)]
[Notices]
[Pages 18562-18564]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08839]


=======================================================================
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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities: Submission for 
OMB Review; Comment Request

AGENCY: Board of Governors of the Federal Reserve System (Board).

ACTION: Notice and request for comment.

-----------------------------------------------------------------------

SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (PRA), the Board, the Federal Deposit Insurance Corporation 
(FDIC), and the Office of the Comptroller of the Currency (OCC) 
(collectively, the agencies) may not conduct or sponsor, and the 
respondent is not required to respond to, an information collection 
unless it displays a currently valid Office of Management and Budget 
(OMB) control number. On December 27, 2017, the Board, under the 
auspices of the Federal Financial Institutions Examination Council 
(FFIEC), requested public comment for 60 days on a proposal to extend, 
with revision, the Report of Assets and Liabilities of U.S. Branches 
and Agencies of Foreign Banks (FFIEC 002) and the Report of Assets and 
Liabilities of a Non-U.S. Branch that is Managed or Controlled by a 
U.S. Branch or Agency of a Foreign (Non-U.S.) Bank (FFIEC 002S), which 
are currently approved collections of information. The Board published 
this proposal on behalf of the agencies.
    The proposed revisions to these reports align with corresponding 
changes made to the Consolidated Reports of Condition and Income (FFIEC 
031, FFIEC 041, and FFIEC 051). The Consolidated Reports of Condition 
and Income are commonly referred to as the Call Report. The proposed 
revisions to the FFIEC 002 and the FFIEC 002S delete or consolidate 
certain items, establish certain reporting thresholds, account for 
changes in the accounting for equity investments, and make 
instructional clarifications consistent with those previously made to 
or currently proposed for the Call Report instructions. The proposed 
revisions would result in an overall reduction in burden.
    The comment period for this proposal ended on February 26, 2018. 
The Board received two comments addressing the proposed changes. After 
considering the comments received on the proposal, the agencies will 
proceed with the proposed reporting revisions to the FFIEC 002 and 
FFIEC 002S, while incorporating one clarification in response to a 
comment. These reporting revisions would take effect as of the June 30, 
2018, report date. The Board is giving notice that it is sending the 
collection to OMB for review.

DATES: Comments must be submitted on or before May 29, 2018.

ADDRESSES: Interested parties are invited to submit written comments to 
the agency listed below. All comments, which should refer to the OMB 
control

[[Page 18563]]

number, will be shared among the agencies.
    You may submit comments, which should refer to ``FFIEC 002 and 
FFIEC 002S,'' by any of the following methods:
     Agency Website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Email: regs.comments@federalreserve.gov. Include the 
reporting form numbers in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available from the Board's website at 
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room 
3515, 1801 K Street NW (between 18th and 19th Streets NW), Washington, 
DC 20006, between 9:00 a.m. and 5:00 p.m. on weekdays.
    Additionally, commenters may send a copy of their comments to the 
OMB desk officer for the agencies by mail to the Office of Information 
and Regulatory Affairs, U.S. Office of Management and Budget, New 
Executive Office Building, Room 10235, 725 17th Street NW, Washington, 
DC 20503; by fax to (202) 395-6974; or by email to 
oira_submission@omb.eop.gov.

FOR FURTHER INFORMATION CONTACT: For further information about the 
proposed revisions to the FFIEC 002 and FFIEC 002S discussed in this 
notice, please contact the agency staff member whose name appears 
below. In addition, copies of the FFIEC 002 and FFIEC 002S forms can be 
obtained at the FFIEC's website (https://www.ffiec.gov/ffiec_report_forms.htm).
    Nuha Elmaghrabi, Federal Reserve Board Clearance Officer, (202) 
452-3884, Office of the Chief Data Officer, Board of Governors of the 
Federal Reserve System, 20th and C Streets NW, Washington, DC 20551. 
Telecommunications Device for the Deaf (TDD) users may call (202) 263-
4869.

SUPPLEMENTARY INFORMATION: The Board is proposing to extend for three 
years, with revision, the FFIEC 002 and FFIEC 002S.
    Report Titles: Report of Assets and Liabilities of U.S. Branches 
and Agencies of Foreign Banks; Report of Assets and Liabilities of a 
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or 
Agency of a Foreign (Non-U.S.) Bank.
    Form Numbers: FFIEC 002; FFIEC 002S.
    OMB control number: 7100-0032.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Respondents: All state-chartered or federally-licensed U.S. 
branches and agencies of foreign banking organizations, and all non-
U.S. branches managed or controlled by a U.S. branch or agency of a 
foreign banking organization.
    Estimated Number of Respondents: FFIEC 002--209; FFIEC 002S--38.
    Estimated Average Burden per Response: FFIEC 002--23.87 hours; 
FFIEC 002S--6.0 hours.
    Estimated Total Annual Burden: FFEIC 002--19,955 hours; FFIEC 
002S--912 hours.
    Type of Review: Revision and extension of currently approved 
collections.

General Description of Reports

    These information collections are mandatory (12 U.S.C. 3105(c)(2), 
1817(a)(1) and (3), and 3102(b)). Except for select sensitive items, 
the FFIEC 002 is not given confidential treatment; the FFIEC 002S is 
given confidential treatment (5 U.S.C. 552(b)(4) and (8)).

Abstract

    On a quarterly basis, all U.S. branches and agencies of foreign 
banks are required to file the FFIEC 002, which is a detailed report of 
condition with a variety of supporting schedules. This information is 
used to fulfill the supervisory and regulatory requirements of the 
International Banking Act of 1978. The data are also used to augment 
the bank credit, loan, and deposit information that the Board uses to 
make decisions concerning monetary policy, and for other public policy 
purposes. The FFIEC 002S is a supplement to the FFIEC 002 that collects 
information on assets and liabilities of any non-U.S. branch that is 
managed or controlled by a U.S. branch or agency of the foreign bank. A 
non-U.S. branch is managed or controlled by a U.S. branch or agency if 
a majority of the responsibility for business decisions, including but 
not limited to decisions with regard to lending or asset management or 
funding or liability management, or the responsibility for 
recordkeeping in respect of assets or liabilities for that foreign 
branch resides at the U.S. branch or agency. A separate FFIEC 002S must 
be completed for each managed or controlled non-U.S. branch. The FFIEC 
002S must be filed quarterly along with the U.S. branch or agency's 
FFIEC 002. The data from both reports are used for (1) monitoring 
deposit and credit transactions of U.S. residents; (2) monitoring the 
impact of policy changes; (3) analyzing structural issues concerning 
foreign bank activity in U.S. markets; (4) understanding flows of 
banking funds and indebtedness of developing countries in connection 
with data collected by the International Monetary Fund and the Bank for 
International Settlements that are used in economic analysis; and (5) 
assisting in the supervision of U.S. offices of foreign banks. The 
Federal Reserve System collects and processes these reports on behalf 
of all three agencies.

Current Actions

I. Introduction

    On December 27, 2017, the Board requested comment for 60 days on a 
proposal to revise the existing FFIEC 002 and FFIEC 002S report forms 
and instructions (82 FR 61294). The proposed revisions partially stem 
from a formal initiative launched by the FFIEC in December 2014 to 
identify potential opportunities to reduce burden associated with Call 
Report requirements for community banks. The FFIEC's formal initiative 
included surveys of agency Call Report data users, which have served as 
the foundation for the proposed burden-reducing revisions. As part of 
these surveys, users were asked to fully explain the need for each Call 
Report data item they deemed essential, how the data item is used, the 
frequency with which it is needed, and the population of institutions 
from which it is needed. Based on the results of the surveys, the 
agencies identified Call Report data items that are no longer needed, 
are needed on a less frequent basis, or are needed only above certain 
reporting thresholds, and have proposed or finalized the elimination, 
less frequent collection, or creation of new or upwardly revised 
reporting thresholds for these data items in the Call Report.\1\ In an 
effort to maintain consistency between the FFIEC 002, the FFIEC 002S, 
and the Call Report, the burden-reducing changes identified for the 
Call Report were incorporated into the December 27, 2017, proposal 
where

[[Page 18564]]

applicable. In addition, the proposed revisions ensure that the 
reporting of data on equity investments in several FFIEC 002 schedules 
is consistent with changes in the accounting standards applicable to 
such investments. All of the proposed revisions have been implemented 
or proposed to be implemented in the Call Report.
---------------------------------------------------------------------------

    \1\ See 80 FR 56539 (September 18, 2015), 81 FR 45357 (July 13, 
2016), 81 FR 54190 (August 15, 2016), 82 FR 2444 (January 9, 2017), 
82 FR 29147 (June 27, 2017), 82 FR 51908 (November 8, 2017), and 83 
FR 939 (January 8, 2018) for information on other actions taken 
under this initiative.
---------------------------------------------------------------------------

    The comment period for this proposal ended on February 26, 2018. 
The Board received two comments on the proposal, one specific comment 
from an individual on a proposed revision and one general comment from 
a government entity. The government entity did not raise concerns about 
the proposal itself, but stated that it uses certain data items in the 
FFIEC 002 and FFIEC 002S in preparing economic statistics on 
international transactions, and encouraged the agencies to continue 
collecting those items. After considering the comments received on the 
proposal, the agencies will proceed with the proposed reporting 
revisions to the FFIEC 002 and FFIEC 002S, while incorporating one 
clarification in response to the specific comment described below. 
These reporting revisions would take effect as of the June 30, 2018, 
report date.

II. Specific Comment on the Proposed FFIEC 002 and FFIEC 002S Revisions

    Respondents to the FFIEC 002 report are currently required to 
indicate, in Schedule RAL, Assets and Liabilities, Memorandum item 17, 
for the March 31 report date, the most comprehensive level of auditing 
work performed for the branch or agency by, or on behalf of, its parent 
organization during the preceding calendar year. In response to certain 
auditing standards issued by the Public Company Accounting Oversight 
Board (PCAOB) and the American Institute of Certified Public 
Accountants' Auditing Standards Board (ASB), the Board proposed to 
revise two of the existing statements describing the most comprehensive 
level of auditing work performed for the branch or agency during the 
preceding year. The Board also proposed to revise the information 
collected in Memorandum item 17 to refer only to work performed by 
independent external auditors and to remove the reference to work 
performed on behalf of the parent organization.
    The Board received one comment from an individual requesting 
clarification as to which branches and agencies are required to have an 
integrated audit conducted by independent external auditors as 
mentioned in the text for proposed statement 1a in the response to 
Memorandum item 17. Specifically, the commenter wanted to confirm that 
only public companies and companies with a market capitalization 
greater than $75 million are required to have an integrated audit.
    Under section 363.3(b) of the FDIC's regulations (12 CFR 363.3(b)), 
the independent public accountant who audits the financial statements 
of an FDIC-insured branch of a foreign bank with $1 billion or more in 
total claims on nonrelated parties is required to audit and report on 
the effectiveness of the branch's internal control over financial 
reporting (ICFR). Standards issued by the PCAOB and the ASB provide 
guidance regarding the integration of audits of ICFR with audits of 
financial statements. Thus, statement 1a and its reference to an 
integrated audit are applicable to certain FDIC-insured branches, which 
means that the requirement for an integrated audit is not limited to 
the circumstances described by the commenter. However, the Board will 
clarify statement 1a of Memorandum item 17 by adding ``(e.g., as 
required for FDIC-insured branches subject to Part 363 of the FDIC's 
regulations that have $1 billion or more in total claims on nonrelated 
parties)'' at the end of the proposed text of this statement.

III. Request for Comment

    Public comment is requested on all aspects of this notice. Comment 
is specifically invited on:
    a. Whether the information collections are necessary for the proper 
performance of the agencies' functions, including whether the 
information has practical utility;
    b. The accuracy of the agencies' estimate 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 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.

    Board of Governors of the Federal Reserve System, April 23, 
2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018-08839 Filed 4-26-18; 8:45 am]
BILLING CODE 6210-01-P



                                               18562                                       Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Notices

                                                 360.9(e)(7)—A covered institution                                         reporting requirements set forth in the                          currently applies to 145 institutions.
                                               may request an extension of the                                             rule will be tested by the FDIC.                                 The FDIC has determined that in the
                                               deadline to comply with provisional                                         Burden Estimate Methodology and                                  past, between 1 and 3 new institutions
                                               hold and standard data format                                               Assumptions                                                      per quarter have become covered under
                                               requirements.                                                                                                                                the regulation. FDIC estimates that on
                                                                                                                             The FDIC is revising its burden                                average, 2 new institutions per quarter
                                                 360.9(f)—A covered institution may                                        estimate because the number of covered
                                               request an exemption from the                                                                                                                (8 new institutions per year) will
                                                                                                                           institutions has decreased due to
                                               provisional hold and standard data                                                                                                           become covered and be subject to initial
                                                                                                                           economic fluctuations and most covered
                                               format requirements due to high                                             institutions have already implemented                            implementation burden. The following
                                               concentration of deposits incidental to                                     the requirements of the regulation and                           table reflects the FDCI’s estimate of the
                                               credit card operations.                                                     will only face reduced ongoing                                   breakdown of covered institutions
                                                 360.9(h)—A covered institution’s                                          compliance burdens. Based on FDIC                                facing implementation and ongoing
                                               compliance with the recordkeeping and                                       Call Report data,1 the regulation                                burden during the next three years:

                                                                                                                                       NUMBER OF INSTITUTIONS
                                                                                                                                                                             Year 1          Year 2          Year 3         Average

                                               Implementation ................................................................................................                          8               8               8           8
                                               Ongoing ...........................................................................................................                    145             153             161         153

                                                     Total ..........................................................................................................                 153             161             169         161



                                                 All covered institutions will be                                          Federal Deposit Insurance Corporation.                           published this proposal on behalf of the
                                               required to comply with the                                                 Robert E. Feldman,                                               agencies.
                                               requirements of 360.9(h). FDIC                                              Executive Secretary.                                                The proposed revisions to these
                                               estimates that half of the covered                                          [FR Doc. 2018–08932 Filed 4–26–18; 8:45 am]                      reports align with corresponding
                                               institutions will be tested for                                             BILLING CODE 6714–01–P                                           changes made to the Consolidated
                                               compliance each year. As a result, it is                                                                                                     Reports of Condition and Income (FFIEC
                                               estimated that an average of 81 covered                                                                                                      031, FFIEC 041, and FFIEC 051). The
                                               institutions will be affected by this                                       FEDERAL RESERVE SYSTEM                                           Consolidated Reports of Condition and
                                               reporting burden annually. No                                                                                                                Income are commonly referred to as the
                                               institutions have requested an extension                                    Proposed Agency Information                                      Call Report. The proposed revisions to
                                               under section 360.9(e)(7), or exemptions                                    Collection Activities: Submission for                            the FFIEC 002 and the FFIEC 002S
                                               under sections 360.9(c)(9) or 360.9(f).                                     OMB Review; Comment Request                                      delete or consolidate certain items,
                                               The ‘‘Summary of Annual Burden’’ table                                      AGENCY: Board of Governors of the                                establish certain reporting thresholds,
                                               above lists a respondent count of 1 for                                     Federal Reserve System (Board).                                  account for changes in the accounting
                                               these requests as placeholders to                                                                                                            for equity investments, and make
                                                                                                                           ACTION: Notice and request for comment.
                                                                                                                                                                                            instructional clarifications consistent
                                               preserve the burden estimates for these
                                                                                                                           SUMMARY:   In accordance with the                                with those previously made to or
                                               activities.
                                                                                                                           requirements of the Paperwork                                    currently proposed for the Call Report
                                               Request for Comment                                                         Reduction Act of 1995 (PRA), the Board,                          instructions. The proposed revisions
                                                                                                                           the Federal Deposit Insurance                                    would result in an overall reduction in
                                                 Comments are invited on: (a) Whether                                      Corporation (FDIC), and the Office of                            burden.
                                               the collection of information is                                            the Comptroller of the Currency (OCC)                               The comment period for this proposal
                                               necessary for the proper performance of                                     (collectively, the agencies) may not                             ended on February 26, 2018. The Board
                                               the FDIC’s functions, including whether                                     conduct or sponsor, and the respondent                           received two comments addressing the
                                               the information has practical utility; (b)                                  is not required to respond to, an                                proposed changes. After considering the
                                               the accuracy of the estimates of the                                        information collection unless it displays                        comments received on the proposal, the
                                               burden of the information collection,                                       a currently valid Office of Management                           agencies will proceed with the proposed
                                               including the validity of the                                               and Budget (OMB) control number. On                              reporting revisions to the FFIEC 002 and
                                               methodology and assumptions used; (c)                                       December 27, 2017, the Board, under                              FFIEC 002S, while incorporating one
                                               ways to enhance the quality, utility, and                                   the auspices of the Federal Financial                            clarification in response to a comment.
                                               clarity of the information to be                                            Institutions Examination Council                                 These reporting revisions would take
                                               collected; and (d) ways to minimize the                                     (FFIEC), requested public comment for                            effect as of the June 30, 2018, report
                                               burden of the collection of information                                     60 days on a proposal to extend, with                            date. The Board is giving notice that it
                                               on respondents, including through the                                       revision, the Report of Assets and                               is sending the collection to OMB for
                                               use of automated collection techniques                                      Liabilities of U.S. Branches and                                 review.
                                               or other forms of information                                               Agencies of Foreign Banks (FFIEC 002)
                                                                                                                           and the Report of Assets and Liabilities                         DATES: Comments must be submitted on
daltland on DSKBBV9HB2PROD with NOTICES




                                               technology. All comments will become                                                                                                         or before May 29, 2018.
                                                                                                                           of a Non-U.S. Branch that is Managed or
                                               a matter of public record.
                                                                                                                           Controlled by a U.S. Branch or Agency                            ADDRESSES: Interested parties are
                                                 Dated at Washington, DC, on April 24,                                     of a Foreign (Non-U.S.) Bank (FFIEC                              invited to submit written comments to
                                               2018.                                                                       002S), which are currently approved                              the agency listed below. All comments,
                                                                                                                           collections of information. The Board                            which should refer to the OMB control

                                                 1 FDIC    Call Report, September 30, 2017.



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                                                                                Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Notices                                                  18563

                                               number, will be shared among the                        Agencies of Foreign Banks; Report of                  be completed for each managed or
                                               agencies.                                               Assets and Liabilities of a Non-U.S.                  controlled non-U.S. branch. The FFIEC
                                                  You may submit comments, which                       Branch that is Managed or Controlled by               002S must be filed quarterly along with
                                               should refer to ‘‘FFIEC 002 and FFIEC                   a U.S. Branch or Agency of a Foreign                  the U.S. branch or agency’s FFIEC 002.
                                               002S,’’ by any of the following methods:                (Non-U.S.) Bank.                                      The data from both reports are used for
                                                  • Agency Website: http://                              Form Numbers: FFIEC 002; FFIEC                      (1) monitoring deposit and credit
                                               www.federalreserve.gov. Follow the                      002S.                                                 transactions of U.S. residents; (2)
                                               instructions for submitting comments at:                  OMB control number: 7100–0032.                      monitoring the impact of policy
                                               http://www.federalreserve.gov/                            Frequency of Response: Quarterly.                   changes; (3) analyzing structural issues
                                               generalinfo/foia/ProposedRegs.cfm.                        Affected Public: Business or other for-             concerning foreign bank activity in U.S.
                                                  • Email: regs.comments@                              profit.                                               markets; (4) understanding flows of
                                               federalreserve.gov. Include the reporting                 Respondents: All state-chartered or                 banking funds and indebtedness of
                                               form numbers in the subject line of the                 federally-licensed U.S. branches and                  developing countries in connection with
                                               message.                                                agencies of foreign banking                           data collected by the International
                                                  • Fax: (202) 452–3819 or (202) 452–                  organizations, and all non-U.S. branches              Monetary Fund and the Bank for
                                               3102.                                                   managed or controlled by a U.S. branch                International Settlements that are used
                                                  • Mail: Ann E. Misback, Secretary,                   or agency of a foreign banking                        in economic analysis; and (5) assisting
                                               Board of Governors of the Federal                       organization.                                         in the supervision of U.S. offices of
                                               Reserve System, 20th Street and                           Estimated Number of Respondents:                    foreign banks. The Federal Reserve
                                               Constitution Avenue NW, Washington,                     FFIEC 002—209; FFIEC 002S—38.                         System collects and processes these
                                               DC 20551.                                                 Estimated Average Burden per                        reports on behalf of all three agencies.
                                                  All public comments are available                    Response: FFIEC 002—23.87 hours;
                                               from the Board’s website at                             FFIEC 002S—6.0 hours.                                 Current Actions
                                               www.federalreserve.gov/generalinfo/                       Estimated Total Annual Burden:                      I. Introduction
                                               foia/ProposedRegs.cfm as submitted,                     FFEIC 002—19,955 hours; FFIEC 002S—
                                                                                                       912 hours.                                               On December 27, 2017, the Board
                                               unless modified for technical reasons.                                                                        requested comment for 60 days on a
                                               Accordingly, your comments will not be                    Type of Review: Revision and
                                                                                                       extension of currently approved                       proposal to revise the existing FFIEC
                                               edited to remove any identifying or                                                                           002 and FFIEC 002S report forms and
                                               contact information. Public comments                    collections.
                                                                                                                                                             instructions (82 FR 61294). The
                                               may also be viewed electronically or in                 General Description of Reports                        proposed revisions partially stem from a
                                               paper form in Room 3515, 1801 K Street                                                                        formal initiative launched by the FFIEC
                                                                                                          These information collections are
                                               NW (between 18th and 19th Streets                                                                             in December 2014 to identify potential
                                                                                                       mandatory (12 U.S.C. 3105(c)(2),
                                               NW), Washington, DC 20006, between                                                                            opportunities to reduce burden
                                                                                                       1817(a)(1) and (3), and 3102(b)). Except
                                               9:00 a.m. and 5:00 p.m. on weekdays.                                                                          associated with Call Report
                                                                                                       for select sensitive items, the FFIEC 002
                                                  Additionally, commenters may send a                                                                        requirements for community banks. The
                                                                                                       is not given confidential treatment; the
                                               copy of their comments to the OMB                                                                             FFIEC’s formal initiative included
                                                                                                       FFIEC 002S is given confidential
                                               desk officer for the agencies by mail to                                                                      surveys of agency Call Report data
                                                                                                       treatment (5 U.S.C. 552(b)(4) and (8)).
                                               the Office of Information and Regulatory                                                                      users, which have served as the
                                               Affairs, U.S. Office of Management and                  Abstract                                              foundation for the proposed burden-
                                               Budget, New Executive Office Building,                    On a quarterly basis, all U.S. branches             reducing revisions. As part of these
                                               Room 10235, 725 17th Street NW,                         and agencies of foreign banks are                     surveys, users were asked to fully
                                               Washington, DC 20503; by fax to (202)                   required to file the FFIEC 002, which is              explain the need for each Call Report
                                               395–6974; or by email to oira_                          a detailed report of condition with a                 data item they deemed essential, how
                                               submission@omb.eop.gov.                                 variety of supporting schedules. This                 the data item is used, the frequency
                                               FOR FURTHER INFORMATION CONTACT: For                    information is used to fulfill the                    with which it is needed, and the
                                               further information about the proposed                  supervisory and regulatory requirements               population of institutions from which it
                                               revisions to the FFIEC 002 and FFIEC                    of the International Banking Act of                   is needed. Based on the results of the
                                               002S discussed in this notice, please                   1978. The data are also used to augment               surveys, the agencies identified Call
                                               contact the agency staff member whose                   the bank credit, loan, and deposit                    Report data items that are no longer
                                               name appears below. In addition, copies                 information that the Board uses to make               needed, are needed on a less frequent
                                               of the FFIEC 002 and FFIEC 002S forms                   decisions concerning monetary policy,                 basis, or are needed only above certain
                                               can be obtained at the FFIEC’s website                  and for other public policy purposes.                 reporting thresholds, and have proposed
                                               (https://www.ffiec.gov/ffiec_report_                    The FFIEC 002S is a supplement to the                 or finalized the elimination, less
                                               forms.htm).                                             FFIEC 002 that collects information on                frequent collection, or creation of new
                                                  Nuha Elmaghrabi, Federal Reserve                     assets and liabilities of any non-U.S.                or upwardly revised reporting
                                               Board Clearance Officer, (202) 452–                     branch that is managed or controlled by               thresholds for these data items in the
                                               3884, Office of the Chief Data Officer,                 a U.S. branch or agency of the foreign                Call Report.1 In an effort to maintain
                                               Board of Governors of the Federal                       bank. A non-U.S. branch is managed or                 consistency between the FFIEC 002, the
                                               Reserve System, 20th and C Streets NW,                  controlled by a U.S. branch or agency if              FFIEC 002S, and the Call Report, the
                                               Washington, DC 20551.                                   a majority of the responsibility for                  burden-reducing changes identified for
                                               Telecommunications Device for the Deaf                  business decisions, including but not                 the Call Report were incorporated into
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                                               (TDD) users may call (202) 263–4869.                    limited to decisions with regard to                   the December 27, 2017, proposal where
                                               SUPPLEMENTARY INFORMATION: The Board                    lending or asset management or funding
                                               is proposing to extend for three years,                 or liability management, or the                          1 See 80 FR 56539 (September 18, 2015), 81 FR

                                               with revision, the FFIEC 002 and FFIEC                  responsibility for recordkeeping in                   45357 (July 13, 2016), 81 FR 54190 (August 15,
                                                                                                                                                             2016), 82 FR 2444 (January 9, 2017), 82 FR 29147
                                               002S.                                                   respect of assets or liabilities for that             (June 27, 2017), 82 FR 51908 (November 8, 2017),
                                                  Report Titles: Report of Assets and                  foreign branch resides at the U.S. branch             and 83 FR 939 (January 8, 2018) for information on
                                               Liabilities of U.S. Branches and                        or agency. A separate FFIEC 002S must                 other actions taken under this initiative.



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                                               18564                            Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Notices

                                               applicable. In addition, the proposed                   commenter wanted to confirm that only                   Board of Governors of the Federal Reserve
                                               revisions ensure that the reporting of                  public companies and companies with a                 System, April 23, 2018.
                                               data on equity investments in several                   market capitalization greater than                    Ann Misback,
                                               FFIEC 002 schedules is consistent with                  $75 million are required to have an                   Secretary of the Board.
                                               changes in the accounting standards                     integrated audit.                                     [FR Doc. 2018–08839 Filed 4–26–18; 8:45 am]
                                               applicable to such investments. All of                                                                        BILLING CODE 6210–01–P
                                                                                                          Under section 363.3(b) of the FDIC’s
                                               the proposed revisions have been
                                               implemented or proposed to be                           regulations (12 CFR 363.3(b)), the
                                               implemented in the Call Report.                         independent public accountant who                     FEDERAL RESERVE SYSTEM
                                                 The comment period for this proposal                  audits the financial statements of an
                                               ended on February 26, 2018. The Board                   FDIC-insured branch of a foreign bank                 Proposed Agency Information
                                               received two comments on the proposal,                  with $1 billion or more in total claims               Collection Activities; Comment
                                               one specific comment from an                            on nonrelated parties is required to                  Request
                                               individual on a proposed revision and                   audit and report on the effectiveness of
                                                                                                                                                             AGENCY: Board of Governors of the
                                               one general comment from a                              the branch’s internal control over
                                                                                                                                                             Federal Reserve System (Board), Federal
                                               government entity. The government                       financial reporting (ICFR). Standards
                                                                                                                                                             Reserve System.
                                               entity did not raise concerns about the                 issued by the PCAOB and the ASB
                                                                                                                                                             ACTION: Notice and request for comment.
                                               proposal itself, but stated that it uses                provide guidance regarding the
                                               certain data items in the FFIEC 002 and                 integration of audits of ICFR with audits             SUMMARY:   In accordance with the
                                               FFIEC 002S in preparing economic                        of financial statements. Thus, statement              requirements of the Paperwork
                                               statistics on international transactions,               1a and its reference to an integrated                 Reduction Act of 1995 (PRA), the Board,
                                               and encouraged the agencies to continue                 audit are applicable to certain FDIC-                 the Federal Deposit Insurance
                                               collecting those items. After considering               insured branches, which means that the                Corporation (FDIC), and the Office of
                                               the comments received on the proposal,                  requirement for an integrated audit is                the Comptroller of the Currency (OCC)
                                               the agencies will proceed with the                      not limited to the circumstances                      (collectively, the ‘‘agencies’’) may not
                                               proposed reporting revisions to the                     described by the commenter. However,                  conduct or sponsor, and the respondent
                                               FFIEC 002 and FFIEC 002S, while                         the Board will clarify statement 1a of                is not required to respond to, an
                                               incorporating one clarification in                                                                            information collection unless it displays
                                                                                                       Memorandum item 17 by adding ‘‘(e.g.,
                                               response to the specific comment                                                                              a currently valid Office of Management
                                                                                                       as required for FDIC-insured branches
                                               described below. These reporting                                                                              and Budget (OMB) control number. The
                                               revisions would take effect as of the                   subject to Part 363 of the FDIC’s
                                                                                                       regulations that have $1 billion or more              Federal Financial Institutions
                                               June 30, 2018, report date.                                                                                   Examination Council (FFIEC), of which
                                                                                                       in total claims on nonrelated parties)’’ at
                                               II. Specific Comment on the Proposed                    the end of the proposed text of this                  the agencies are members, has approved
                                               FFIEC 002 and FFIEC 002S Revisions                      statement.                                            the Board’s publication for public
                                                  Respondents to the FFIEC 002 report                                                                        comment of a proposal to extend,
                                                                                                       III. Request for Comment                              without revision, the Country Exposure
                                               are currently required to indicate, in
                                               Schedule RAL, Assets and Liabilities,                                                                         Report for U.S. Branches and Agencies
                                                                                                         Public comment is requested on all                  of Foreign Banks (FFIEC 019), which is
                                               Memorandum item 17, for the March 31                    aspects of this notice. Comment is
                                               report date, the most comprehensive                                                                           currently an approved collection of
                                                                                                       specifically invited on:                              information. The Board is publishing
                                               level of auditing work performed for the
                                               branch or agency by, or on behalf of, its                 a. Whether the information                          this proposal on behalf of the agencies.
                                               parent organization during the                          collections are necessary for the proper              In determining whether to modify the
                                               preceding calendar year. In response to                 performance of the agencies’ functions,               proposed collection of information, the
                                               certain auditing standards issued by the                including whether the information has                 agencies will consider all comments
                                               Public Company Accounting Oversight                     practical utility;                                    received. As required by the PRA, the
                                               Board (PCAOB) and the American                            b. The accuracy of the agencies’                    Board would then publish a second
                                               Institute of Certified Public                                                                                 Federal Register notice for a 30-day
                                                                                                       estimate of the burden of the
                                               Accountants’ Auditing Standards Board                                                                         comment period and submit the final
                                                                                                       information collections, including the
                                               (ASB), the Board proposed to revise two                                                                       FFIEC 019 to OMB for review and
                                                                                                       validity of the methodology and
                                               of the existing statements describing the                                                                     approval.
                                                                                                       assumptions used;
                                               most comprehensive level of auditing                                                                          DATES: Comments must be submitted on
                                               work performed for the branch or                          c. Ways to enhance the quality,
                                                                                                                                                             or before June 26, 2018.
                                               agency during the preceding year. The                   utility, and clarity of the information to
                                                                                                                                                             ADDRESSES: Interested parties are
                                               Board also proposed to revise the                       be collected;
                                                                                                                                                             invited to submit written comments to
                                               information collected in Memorandum                       d. Ways to minimize the burden of the               the agency listed below. All comments,
                                               item 17 to refer only to work performed                 information collections on respondents,               which should refer to the OMB control
                                               by independent external auditors and to                 including through the use of automated                number, will be shared among the
                                               remove the reference to work performed                  collection techniques or other forms of               agencies.
                                               on behalf of the parent organization.                   information technology; and                              You may submit comments, which
                                                  The Board received one comment                                                                             should refer to ‘‘FFIEC 019,’’ by any of
                                                                                                         e. Estimates of capital or start up costs
                                               from an individual requesting                                                                                 the following methods:
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                                                                                                       and costs of operation, maintenance,
                                               clarification as to which branches and                                                                           • Agency website: http://
                                                                                                       and purchase of services to provide
                                               agencies are required to have an                                                                              www.federalreserve.gov. Follow the
                                               integrated audit conducted by                           information.
                                                                                                                                                             instructions for submitting comments at:
                                               independent external auditors as                          Comments submitted in response to                   http://www.federalreserve.gov/
                                               mentioned in the text for proposed                      this notice will be shared among the                  generalinfo/foia/ProposedRegs.cfm.
                                               statement 1a in the response to                         agencies. All comments will become a                     • Email: regs.comments@
                                               Memorandum item 17. Specifically, the                   matter of public record.                              federalreserve.gov. Include the reporting


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Document Created: 2018-04-27 01:44:45
Document Modified: 2018-04-27 01:44:45
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice and request for comment.
DatesComments must be submitted on or before May 29, 2018.
ContactFor further information about the proposed revisions to the FFIEC 002 and FFIEC 002S discussed in this notice, please contact the agency staff member whose name appears below. In addition, copies of the FFIEC 002 and FFIEC 002S forms can be obtained at the FFIEC's website (https://www.ffiec.gov/ ffiec_report_forms.htm).
FR Citation83 FR 18562 

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