This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
Rules and Regulations Federal Register
4895
Vol. 62, No. 22
Monday, February 3, 1997
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 304
RIN 3064–AB89
Forms, Instructions and Reports
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule.
SUMMARY: As part of the FDIC’s
systematic review of its regulations and
written policies under section 303(a) of
the Riegle Community Development and
Regulatory Improvement Act of 1994
(CDRI), the FDIC is revising its
regulations relating to forms,
instructions and reports. The regulation
was created in 1948 to satisfy the
requirement found in the
Administrative Procedure Act (APA) to
‘‘publish in the Federal Register * * *
rules of procedure, descriptions of forms
available or the places at which forms
may be obtained, and instructions as to
the scope and contents of all papers,
reports, or examinations.’’ A portion of
the regulation was added in 1992 to
implement the mandate found at section
122 of the Federal Deposit Insurance
Corporation Improvement Act of 1991
(FDICIA), which requires the FDIC to
adopt a regulation which requires the
collection of information on small farm
and small business lending from
insured depository institutions. In
addition, section 37 of the Federal
Deposit Insurance Act (FDI Act), as
added by FDICIA, requires that the FDIC
adopt regulations mandating the
inclusion of ‘‘off balance sheet’’ items in
all assets and liabilities (including
contingent assets and liabilities)
reflected on any balance sheet, financial
statement, report of condition, or other
report that insured depository
institutions file with a federal banking
agency. The additional requirement to
include contingent assets and liabilities
is being incorporated into a section of
the regulation. In an effort to streamline
its regulations and provide the public
with information about its forms,
instructions and reports (including
specific dates by which such reports
must be filed), the FDIC is revising this
regulation, by removing unneeded
language while retaining the listing of
forms and other required information to
satisfy the public information
requirements found in FOIA, section
122 of FDICIA, and section 37 of the FDI
Act.
EFFECTIVE DATE: February 3, 1997.
FOR FURTHER INFORMATION CONTACT:
Steven F. Hanft, Assistant Executive
Secretary (Regulatory Analysis), (202)
898–3907, Office of the Executive
Secretary; Karen Main, Senior Attorney,
(202) 898–8838, Legal Division; FDIC,
550 17th Street, NW, Washington, D.C.
20429.
SUPPLEMENTARY INFORMATION:
I. Discussion
The FDIC is conducting a systematic
review of its regulations and written
policies. Section 303(a) of CDRI, 12
U.S.C. 4803(a), requires each federal
banking agency to streamline and
modify its regulations and written
policies in order to improve efficiency,
reduce unnecessary costs, and eliminate
unwanted constraints on credit
availability. Section 303(a) also requires
each federal banking regulatory agency
to remove inconsistent, outmoded, or
duplicative requirements from its
regulations and written policies.
As part of this review, the FDIC has
determined that certain provisions of
part 304 contain outmoded and
unnecessary language that needs to be
revised or removed. By so doing, the
FDIC’s regulation concerning forms,
instructions and reports will be updated
and streamlined to provide accurate
information.
The FDIC published the current
version of the regulation on October 15,
1986 in the Federal Register (51 FR
36684) in accordance with the APA
(U.S.C. 551 et seq.). Section 304.4 was
later modified to implement Section 122
of FDICIA (12 U.S.C. 1817 note) on June
5, 1992 (57 FR 23932). Sections 304.4
and 304.5 are being revised to
incorporate the reporting requirement
set forth in Section 37(a)(3)(c) of the FDI
Act. 12 U.S.C. 1831n(a)(3)(C). This
statutory provision requires that the
Corporation develop a regulation which
requires that ‘‘all assets and liabilities,
including contingent assets and
liabilities’’ be reported in an insured
depository institution’s Call Reports.
This reporting requirement, which was
enacted as Section 121 of FDICIA in
1991, was initially implemented by
revising the Call Reports in 1992. The
proposed change was published for
comment in connection with the FDIC’s
Notice of Information Collection
submitted to the Office of Management
and Budget. See 57 FR 54235 (Nov. 17,
1992). Section 304.4 is being further
revised to add information which is
currently found in the instructions to
the Call Reports regarding the timely
filing of the Call Reports. This
requirement was initially issued for
notice and comment under the auspices
of the Federal Financial Institutions
Examination Council, and adopted in
final in 1988. See, 53 FR 11558 (Apr. 7,
1988) and 53 FR 32104 (Aug. 23, 1988).
Part 304 provides the public with the
information about the forms and reports
that insured financial institutions are to
submit to the FDIC. With the exception
of the provisions relating to lending to
small farms and small business and the
reporting of ‘‘off balance sheet’’ items,
there is no statutory requirement to
provide all of the information contained
in Part 304 by regulation. Thus, through
the proposed changes, the statutory
requirements will be retained, FOIA’s
publication requirements at 5 U.S.C.
552(a)(1)(C) will continue to be fulfilled,
and the regulatory framework will be
streamlined.
II. Public Comment Waiver and
Effective Date
This regulation is being issued as a
final rule. The APA requires general
notice of proposed rulemaking in the
Federal Register; however, this
regulation is exempt from the Federal
Register publication requirement
pursuant to 5 U.S.C. 553(b). This section
of the APA exempts ‘‘rules of agency
organization, procedure, or practice’’. 5
U.S.C. 553(b)(A). Notwithstanding the
fact that part 304 is a procedural rule,
some of the proposed language that will
be added to various sections appears to
impose new reporting requirements or
time constraints on affected financial
institutions. The Call Report filing
deadlines, as well as the requirement to
report the contingent assets and
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
Rules and Regulations Federal Register
4895
Vol. 62, No. 22
Monday, February 3, 1997
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 304
RIN 3064–AB89
Forms, Instructions and Reports
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule.
SUMMARY: As part of the FDIC’s
systematic review of its regulations and
written policies under section 303(a) of
the Riegle Community Development and
Regulatory Improvement Act of 1994
(CDRI), the FDIC is revising its
regulations relating to forms,
instructions and reports. The regulation
was created in 1948 to satisfy the
requirement found in the
Administrative Procedure Act (APA) to
‘‘publish in the Federal Register * * *
rules of procedure, descriptions of forms
available or the places at which forms
may be obtained, and instructions as to
the scope and contents of all papers,
reports, or examinations.’’ A portion of
the regulation was added in 1992 to
implement the mandate found at section
122 of the Federal Deposit Insurance
Corporation Improvement Act of 1991
(FDICIA), which requires the FDIC to
adopt a regulation which requires the
collection of information on small farm
and small business lending from
insured depository institutions. In
addition, section 37 of the Federal
Deposit Insurance Act (FDI Act), as
added by FDICIA, requires that the FDIC
adopt regulations mandating the
inclusion of ‘‘off balance sheet’’ items in
all assets and liabilities (including
contingent assets and liabilities)
reflected on any balance sheet, financial
statement, report of condition, or other
report that insured depository
institutions file with a federal banking
agency. The additional requirement to
include contingent assets and liabilities
is being incorporated into a section of
the regulation. In an effort to streamline
its regulations and provide the public
with information about its forms,
instructions and reports (including
specific dates by which such reports
must be filed), the FDIC is revising this
regulation, by removing unneeded
language while retaining the listing of
forms and other required information to
satisfy the public information
requirements found in FOIA, section
122 of FDICIA, and section 37 of the FDI
Act.
EFFECTIVE DATE: February 3, 1997.
FOR FURTHER INFORMATION CONTACT:
Steven F. Hanft, Assistant Executive
Secretary (Regulatory Analysis), (202)
898–3907, Office of the Executive
Secretary; Karen Main, Senior Attorney,
(202) 898–8838, Legal Division; FDIC,
550 17th Street, NW, Washington, D.C.
20429.
SUPPLEMENTARY INFORMATION:
I. Discussion
The FDIC is conducting a systematic
review of its regulations and written
policies. Section 303(a) of CDRI, 12
U.S.C. 4803(a), requires each federal
banking agency to streamline and
modify its regulations and written
policies in order to improve efficiency,
reduce unnecessary costs, and eliminate
unwanted constraints on credit
availability. Section 303(a) also requires
each federal banking regulatory agency
to remove inconsistent, outmoded, or
duplicative requirements from its
regulations and written policies.
As part of this review, the FDIC has
determined that certain provisions of
part 304 contain outmoded and
unnecessary language that needs to be
revised or removed. By so doing, the
FDIC’s regulation concerning forms,
instructions and reports will be updated
and streamlined to provide accurate
information.
The FDIC published the current
version of the regulation on October 15,
1986 in the Federal Register (51 FR
36684) in accordance with the APA
(U.S.C. 551 et seq.). Section 304.4 was
later modified to implement Section 122
of FDICIA (12 U.S.C. 1817 note) on June
5, 1992 (57 FR 23932). Sections 304.4
and 304.5 are being revised to
incorporate the reporting requirement
set forth in Section 37(a)(3)(c) of the FDI
Act. 12 U.S.C. 1831n(a)(3)(C). This
statutory provision requires that the
Corporation develop a regulation which
requires that ‘‘all assets and liabilities,
including contingent assets and
liabilities’’ be reported in an insured
depository institution’s Call Reports.
This reporting requirement, which was
enacted as Section 121 of FDICIA in
1991, was initially implemented by
revising the Call Reports in 1992. The
proposed change was published for
comment in connection with the FDIC’s
Notice of Information Collection
submitted to the Office of Management
and Budget. See 57 FR 54235 (Nov. 17,
1992). Section 304.4 is being further
revised to add information which is
currently found in the instructions to
the Call Reports regarding the timely
filing of the Call Reports. This
requirement was initially issued for
notice and comment under the auspices
of the Federal Financial Institutions
Examination Council, and adopted in
final in 1988. See, 53 FR 11558 (Apr. 7,
1988) and 53 FR 32104 (Aug. 23, 1988).
Part 304 provides the public with the
information about the forms and reports
that insured financial institutions are to
submit to the FDIC. With the exception
of the provisions relating to lending to
small farms and small business and the
reporting of ‘‘off balance sheet’’ items,
there is no statutory requirement to
provide all of the information contained
in Part 304 by regulation. Thus, through
the proposed changes, the statutory
requirements will be retained, FOIA’s
publication requirements at 5 U.S.C.
552(a)(1)(C) will continue to be fulfilled,
and the regulatory framework will be
streamlined.
II. Public Comment Waiver and
Effective Date
This regulation is being issued as a
final rule. The APA requires general
notice of proposed rulemaking in the
Federal Register; however, this
regulation is exempt from the Federal
Register publication requirement
pursuant to 5 U.S.C. 553(b). This section
of the APA exempts ‘‘rules of agency
organization, procedure, or practice’’. 5
U.S.C. 553(b)(A). Notwithstanding the
fact that part 304 is a procedural rule,
some of the proposed language that will
be added to various sections appears to
impose new reporting requirements or
time constraints on affected financial
institutions. The Call Report filing
deadlines, as well as the requirement to
report the contingent assets and
4896 Federal Register / Vol. 62, No. 22 / Monday, February 3, 1997 / Rules and Regulations
liabilities on the Call Report have
previously been issued for notice and
comment before being adopted in final
form. These requirements have been in
place and insured depository
institutions have been complying with
them for a number of years. These pre-
existing supervisory requirements are
now being codified in part 304.
Moreover, several other revisions are
minor and technical in nature.
Therefore, the Board finds that there is
good cause for not providing a notice
and comment period before adopting
part 304 in final form. Under the
circumstances described above, notice
and comment would be unnecessary
and contrary to the public interest. 5
U.S.C. 553(b)(B).
In addition, the APA provides that a
substantive rule shall be published in
the Federal Register not less than 30
days before its effective date. However,
this APA requirement does not apply to
Part 304 since it is a rule of agency
procedure. 5 U.S.C. 553(d).
Alternatively, the amendments are of
such a nature that the public does not
need a delayed period of time in which
to conform or adjust to the amendments.
Thus, the Board finds that there exists
good cause for not delaying the effective
date of these amendments. 5 U.S.C.
553(d)(3).
III. Matters of Regulatory Procedure
Regulatory Flexibility Act
Part 304 is a rule relating to agency
organization, procedure, or practice, and
is therefore not subject to the provisions
of the Regulatory Flexibility Act.
Further, because the revisions to part
304 will be published in final form
without a notice of proposed
rulemaking, no regulatory flexibility
analysis is required.
Paperwork Reduction Act
No further collection of information is
required as a result of the regulatory
amendments. Therefore, no material
will be submitted to the OMB for review
pursuant to the Paperwork Reduction
Act. 44 U.S. 3501 et seq.
Contract With America/SBREFA
Analysis
The Small Business Regulatory
Enforcement Fairness Act of 1996
(SBREFA), Title II of the Contract with
America Advancement Act of 1996
(Pub. L. 104–121), provides generally for
Congressional review of final agency
rules. When required by SBREFA, the
FDIC reports rules to Congress. The
reporting requirement is triggered in
instances where the FDIC issues a final
rule as defined by the APA at 5 U.S.C.
551. The FDIC will file the appropriate
report pursuant to the statute.
The Office of Management and Budget
has determined that this final revision
to part 304 does not constitute a
‘‘major’’ rule as defined by the statute.
List of Subjects in 12 CFR Part 304
Bank deposit insurance, Bank,
banking, Freedom of information,
Reporting and recordkeeping
requirements.
For the reasons set forth above, 12
CFR part 304 is amended as set forth
below:
PART 304—FORMS, INSTRUCTIONS
AND REPORTS
1. The authority citation for part 304
continues to read as follows:
Authority: 5 U.S.C. 552; 12 U.S.C. 1817,
1818, 1819, 1820; Public Law 102–242, 105
Stat. 2251 (12 U.S.C. 1817 note).
§ 304.1 [Amended]
2. Section 304.1 is amended by
removing the word ‘‘all’’ from the last
sentence.
3. Section 304.2 is revised to read as
follows:
§ 304.2 Forms and instructions—general.
Necessary forms with their related
instructions to be used in connection
with applications, reports, and other
submittals can be obtained from FDIC
regional offices—Division of
Supervision. The FDIC regional offices
are listed in the directory of the FDIC
Law, Regulations and Related Acts
looseleaf service, published by the
FDIC. A listing of FDIC forms can also
be obtained by writing to the FDIC,
Division of Supervision, 550 17th Street,
NW, Washington, D.C. 20429. The forms
are also available in the FDIC Public
Information Center at 801 17th Street,
NW, Washington, D.C. 20429.
4. Section 304.3 is revised to read as
follows:
§ 304.3 Certified statements.
The certified statements required to
be filed by insured institutions under
the provisions of section 7 of the
Federal Deposit Insurance Act (12
U.S.C. 1817), as amended, shall be filed
in accordance with part 327 of this
chapter. The applicable forms are Form
6420/07A—Form 6420/07H which show
the computation of the semiannual
assessment due to the Corporation from
an insured depository institution. As
provided for in part 327 of this chapter,
the forms will be furnished to insured
depository institutions by the
Corporation twice each calendar year
and the completed statement must be
returned to the Corporation by each
institution.
5. Section 304.4 is revised to read as
follows:
§ 304.4 Reports of condition and income.
(a) Description. Forms FFIEC 031,
032, 033, and 034, Consolidated Reports
of Condition and Income, are quarterly
reports for insured state nonmember
banks (except District banks) of different
asset sizes or with foreign offices, as
appropriate, that are required to be
prepared as of the close of business on
the following report dates: March 31,
June 30, September 30, and December
31. These reports are also known as the
‘‘Call Report.’’ The Call Report includes
a balance sheet, an income statement,
and a statement of changes in equity
capital of the reporting bank.
Supporting schedules request additional
detail with respect to charge-offs and
recoveries, income from international
operations, specific asset and liability
accounts, off-balance sheet items, past
due and nonaccrual assets, information
for assessment purposes, and regulatory
capital. All assets and liabilities,
including contingent assets and
liabilities, must be reported in, or
otherwise taken into account in the
preparation of, the Call Report.
Reporting banks must also submit
annually such information on small
business and small farm lending as the
FDIC may need to assess the availability
of credit to these sectors of the
economy. Call Reports must be prepared
in accordance with the appropriate
instructions contained in the Federal
Financial Institutions Examination
Council booklet entitled ‘‘Instructions—
Consolidated Reports of Condition and
Income’’. The report forms, the
instructions for completing the reports,
and the accompanying materials will be
furnished to all insured state
nonmember banks (except District
banks) by, or may be obtained upon
request from, the Call Reports Analysis
Unit, Division of Supervision, FDIC,
Washington, D.C. 20429.
(b) Submission of reports. All insured
state nonmember banks (except District
banks) shall file their completed reports
by the method and with the appropriate
collection agent for the FDIC as
designated in the materials
accompanying the report forms each
quarter. Completed reports must be
received no more than 30 calendar days
after the report date, subject to the
timely filing provisions set forth in the
‘‘Instructions—Consolidated Reports of
Condition and Income’’ and in the
materials accompanying the report
forms each quarter. Any bank which has
or has had more than one foreign office,
liabilities on the Call Report have
previously been issued for notice and
comment before being adopted in final
form. These requirements have been in
place and insured depository
institutions have been complying with
them for a number of years. These pre-
existing supervisory requirements are
now being codified in part 304.
Moreover, several other revisions are
minor and technical in nature.
Therefore, the Board finds that there is
good cause for not providing a notice
and comment period before adopting
part 304 in final form. Under the
circumstances described above, notice
and comment would be unnecessary
and contrary to the public interest. 5
U.S.C. 553(b)(B).
In addition, the APA provides that a
substantive rule shall be published in
the Federal Register not less than 30
days before its effective date. However,
this APA requirement does not apply to
Part 304 since it is a rule of agency
procedure. 5 U.S.C. 553(d).
Alternatively, the amendments are of
such a nature that the public does not
need a delayed period of time in which
to conform or adjust to the amendments.
Thus, the Board finds that there exists
good cause for not delaying the effective
date of these amendments. 5 U.S.C.
553(d)(3).
III. Matters of Regulatory Procedure
Regulatory Flexibility Act
Part 304 is a rule relating to agency
organization, procedure, or practice, and
is therefore not subject to the provisions
of the Regulatory Flexibility Act.
Further, because the revisions to part
304 will be published in final form
without a notice of proposed
rulemaking, no regulatory flexibility
analysis is required.
Paperwork Reduction Act
No further collection of information is
required as a result of the regulatory
amendments. Therefore, no material
will be submitted to the OMB for review
pursuant to the Paperwork Reduction
Act. 44 U.S. 3501 et seq.
Contract With America/SBREFA
Analysis
The Small Business Regulatory
Enforcement Fairness Act of 1996
(SBREFA), Title II of the Contract with
America Advancement Act of 1996
(Pub. L. 104–121), provides generally for
Congressional review of final agency
rules. When required by SBREFA, the
FDIC reports rules to Congress. The
reporting requirement is triggered in
instances where the FDIC issues a final
rule as defined by the APA at 5 U.S.C.
551. The FDIC will file the appropriate
report pursuant to the statute.
The Office of Management and Budget
has determined that this final revision
to part 304 does not constitute a
‘‘major’’ rule as defined by the statute.
List of Subjects in 12 CFR Part 304
Bank deposit insurance, Bank,
banking, Freedom of information,
Reporting and recordkeeping
requirements.
For the reasons set forth above, 12
CFR part 304 is amended as set forth
below:
PART 304—FORMS, INSTRUCTIONS
AND REPORTS
1. The authority citation for part 304
continues to read as follows:
Authority: 5 U.S.C. 552; 12 U.S.C. 1817,
1818, 1819, 1820; Public Law 102–242, 105
Stat. 2251 (12 U.S.C. 1817 note).
§ 304.1 [Amended]
2. Section 304.1 is amended by
removing the word ‘‘all’’ from the last
sentence.
3. Section 304.2 is revised to read as
follows:
§ 304.2 Forms and instructions—general.
Necessary forms with their related
instructions to be used in connection
with applications, reports, and other
submittals can be obtained from FDIC
regional offices—Division of
Supervision. The FDIC regional offices
are listed in the directory of the FDIC
Law, Regulations and Related Acts
looseleaf service, published by the
FDIC. A listing of FDIC forms can also
be obtained by writing to the FDIC,
Division of Supervision, 550 17th Street,
NW, Washington, D.C. 20429. The forms
are also available in the FDIC Public
Information Center at 801 17th Street,
NW, Washington, D.C. 20429.
4. Section 304.3 is revised to read as
follows:
§ 304.3 Certified statements.
The certified statements required to
be filed by insured institutions under
the provisions of section 7 of the
Federal Deposit Insurance Act (12
U.S.C. 1817), as amended, shall be filed
in accordance with part 327 of this
chapter. The applicable forms are Form
6420/07A—Form 6420/07H which show
the computation of the semiannual
assessment due to the Corporation from
an insured depository institution. As
provided for in part 327 of this chapter,
the forms will be furnished to insured
depository institutions by the
Corporation twice each calendar year
and the completed statement must be
returned to the Corporation by each
institution.
5. Section 304.4 is revised to read as
follows:
§ 304.4 Reports of condition and income.
(a) Description. Forms FFIEC 031,
032, 033, and 034, Consolidated Reports
of Condition and Income, are quarterly
reports for insured state nonmember
banks (except District banks) of different
asset sizes or with foreign offices, as
appropriate, that are required to be
prepared as of the close of business on
the following report dates: March 31,
June 30, September 30, and December
31. These reports are also known as the
‘‘Call Report.’’ The Call Report includes
a balance sheet, an income statement,
and a statement of changes in equity
capital of the reporting bank.
Supporting schedules request additional
detail with respect to charge-offs and
recoveries, income from international
operations, specific asset and liability
accounts, off-balance sheet items, past
due and nonaccrual assets, information
for assessment purposes, and regulatory
capital. All assets and liabilities,
including contingent assets and
liabilities, must be reported in, or
otherwise taken into account in the
preparation of, the Call Report.
Reporting banks must also submit
annually such information on small
business and small farm lending as the
FDIC may need to assess the availability
of credit to these sectors of the
economy. Call Reports must be prepared
in accordance with the appropriate
instructions contained in the Federal
Financial Institutions Examination
Council booklet entitled ‘‘Instructions—
Consolidated Reports of Condition and
Income’’. The report forms, the
instructions for completing the reports,
and the accompanying materials will be
furnished to all insured state
nonmember banks (except District
banks) by, or may be obtained upon
request from, the Call Reports Analysis
Unit, Division of Supervision, FDIC,
Washington, D.C. 20429.
(b) Submission of reports. All insured
state nonmember banks (except District
banks) shall file their completed reports
by the method and with the appropriate
collection agent for the FDIC as
designated in the materials
accompanying the report forms each
quarter. Completed reports must be
received no more than 30 calendar days
after the report date, subject to the
timely filing provisions set forth in the
‘‘Instructions—Consolidated Reports of
Condition and Income’’ and in the
materials accompanying the report
forms each quarter. Any bank which has
or has had more than one foreign office,