Initial 60-day Federal Register Notice

Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices
individuals/privacy/privacy-act-systemrecords-notices, the comments are
searchable by the name of the submitter.
II. Background
Under 49 U.S.C. 31136(e) and
31315(b), FMCSA may grant an
exemption from the FMCSRs for no
longer than a 5-year period if it finds
such exemption would likely achieve a
level of safety that is equivalent to, or
greater than, the level that would be
achieved absent such exemption. The
statutes also allow the Agency to renew
exemptions at the end of the 5-year
period. FMCSA grants medical
exemptions from the FMCSRs for a 2year period to align with the maximum
duration of a driver’s medical
certification.
The two individuals listed in this
notice have requested an exemption
from § 391.41(b)(4). Accordingly, the
Agency will evaluate the qualifications
of each applicant to determine whether
granting the exemption will achieve the
required level of safety mandated by
statute.
The physical qualification standard
found in § 391.41(b)(4) states that a
person is physically qualified to drive a
CMV if that person has no current
clinical diagnosis of myocardial
infarction, angina pectoris, coronary
insufficiency, thrombosis, or any other
cardiovascular disease of a variety
known to be accompanied by syncope,
dyspnea, collapse, or congestive cardiac
failure.
In addition to the regulations, FMCSA
has published advisory criteria 1 to
assist medical examiners in determining
whether drivers with certain medical
conditions are qualified to operate a
CMV in interstate commerce. The
advisory criteria states that ICDs are
disqualifying due to risk of syncope.

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III. Qualification of Applicant
Dean Cece
Dean Cece is a class C driver’s license
holder in North Carolina. In letters
dated May 16, 2022, November 11,
2023, and February 15, 2023, Dean
Cece’s cardiology team reports that the
ICD was implanted on December 7,
1998. They state there have been no
discharges from the ICD and from a
cardiac perspective, Dean Cece
continues to be stable with no limitation
of physical activity, consistent with a
New York Heart Association class I
rating.
1 These criteria may be found in 49 CFR part 391,
Appendix A to Part 391—Medical Advisory
Criteria, Section D. Cardiovascular: § 391.41(b)(4),
paragraph 4, which is available on the internet at
https://www.gpo.gov/fdsys/pkg/CFR-2015-title49vol5/pdf/CFR-2015-title49-vol5-part391-appA.pdf.

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Donald Roach
Donald Roach is a class D driver’s
license holder in Kentucky. In a letter
dated May 12, 2023, Donald Roach’s
cardiologist reports that their ICD was
implanted on August 31, 2015. They
state there have been no discharges from
the ICD and from a cardiac standpoint,
Donald Roach continues to be stable
with no symptoms.
IV. Request for Comments
In accordance with 49 U.S.C. 31136(e)
and 31315(b), FMCSA requests public
comment from all interested persons on
the exemption petitions described in
this notice. We will consider all
comments received before the close of
business on the closing date indicated
under the DATES section of the notice.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2023–21198 Filed 9–27–23; 8:45 am]
BILLING CODE 4910–EX–P

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE
CORPORATION
Proposed Agency Information
Collection Activities; Comment
Request
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 and request for
comment.
AGENCY:

In accordance with the
requirements of the Paperwork
Reduction Act of 1995 (PRA), the OCC,
the Board, and the FDIC (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. The Federal Financial
Institutions Examination Council
(FFIEC), of which the agencies are
members, has approved the agencies’
publication for public comment of a
proposal to revise and extend for three
years the Consolidated Reports of
Condition and Income (Call Reports)
(FFIEC 031, FFIEC 041, and FFIEC 051),
which are currently approved
collections of information. The FFIEC

SUMMARY:

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has also approved the Board’s
publication for public comment, on
behalf of the agencies, of a proposal to
revise and extend for three years 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 (NonU.S.) Bank (FFIEC 002S), which are also
currently approved collections of
information. The agencies are requesting
comment on proposed revisions related
to the Financial Accounting Standards
Board’s (FASB) Accounting Standards
Update (ASU) 2022–02, ‘‘Financial
Instruments—Credit Losses (Topic 326):
Troubled Debt Restructurings and
Vintage Disclosures’’ (ASU 2022–02);
reporting of past due loans; and
reporting of internet website addresses
of depository institution trade names.
The revisions are proposed to take effect
with the March 31, 2024, report date.
DATES: Comments must be submitted on
or before November 27, 2023.
ADDRESSES: Interested parties are
invited to submit written comments to
any or all of the agencies. All comments
will be shared among the agencies.
OCC: You may submit comments, by
any of the following methods:
• Email: prainfo@occ.treas.gov.
• Mail: Chief Counsel’s Office, Office
of the Comptroller of the Currency,
Attention: 1557–0081, 400 7th Street
SW, Suite 3E–218, Washington, DC
20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘1557–
0081’’ in your comment. In general, the
OCC will publish comments on
www.reginfo.gov without change,
including any business or personal
information provided, such as name and
address information, email addresses, or
phone numbers. Comments received,
including attachments and other
supporting materials, are part of the
public record and subject to public
disclosure. Do not include any
information in your comment or
supporting materials that you consider
confidential or inappropriate for public
disclosure.
You may review comments and other
related materials that pertain to this
information collection beginning on the
date of publication of the second notice
for this collection by the following
method:
• Viewing Comments Electronically:
Go to www.reginfo.gov. Hover over the
‘‘Information Collection Review’’ drop

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down menu and select ‘‘Information
Collection Review.’’ Underneath the
‘‘Currently under Review’’ section
heading, from the drop-down menu
select ‘‘Department of Treasury’’ and
then click ‘‘submit.’’ This information
collection can be located by searching
by OMB control number ‘‘1557–0081.’’
Upon finding the appropriate
information collection, click on the
related ‘‘ICR Reference Number.’’ On the
next screen, select ‘‘View Supporting
Statement and Other Documents’’ and
then click on the link to any comment
listed at the bottom of the screen.
• For assistance in navigating
www.reginfo.gov, please contact the
Regulatory Information Service Center
at (202) 482–7340.
Board: You may submit comments,
which should refer to ‘‘Call Report and
FFIEC 002 Revisions,’’ 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 ‘‘Call Report
and FFIEC 002 Revisions’’ in the subject
line of the message.
• Fax: (202) 395–6974.
• 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 on
the Board’s website at https://
www.federalreserve.gov/apps/foia/
proposedregs.aspx as submitted, unless
modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information.
FDIC: You may submit comments,
which should refer to ‘‘Call Report and
FFIEC 002 Revisions,’’ by any of the
following methods:
• Agency website: https://
www.fdic.gov/resources/regulations/
federal-register-publications/. Follow
the instructions for submitting
comments on the FDIC’s website.
• Email: comments@FDIC.gov.
Include ‘‘Call Report and FFIEC 002
Revisions’’ in the subject line of the
message.
• Mail: Manuel E. Cabeza, Counsel,
Attn: Comments, Room MB–3128,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street NW
building (located on F Street NW) on
business days between 7 a.m. and 5 p.m.

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• Public Inspection: All comments
received, including any personal
information provided, will be posted
without change to https://www.fdic.gov/
resources/regulations/federal-registerpublications/. Commenters should
submit only information that the
commenter wishes to make available
publicly. The FDIC may review, redact,
or refrain from posting all or any portion
of any comment that it may deem to be
inappropriate for publication, such as
irrelevant or obscene material. The FDIC
may post only a single representative
example of identical or substantially
identical comments, and in such cases
will generally identify the number of
identical or substantially identical
comments represented by the posted
example. All comments that have been
redacted, as well as those that have not
been posted, that contain comments on
the merits of this document will be
retained in the public comment file and
will be considered as required under all
applicable laws. All comments may be
accessible under the Freedom of
Information Act.
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 about the proposed
revisions to the information collections
discussed in this notice, please contact
any of the agency staff whose names
appear below. In addition, copies of the
report forms for the Call Reports can be
obtained at the FFIEC’s website (https://
www.ffiec.gov/ffiec_report_forms.htm).
OCC: Kevin Korzeniewski, Counsel,
Chief Counsel’s Office, (202) 649–5490.
If you are deaf, hard of hearing, or have
a speech disability, please dial 7–1–1 to
access telecommunications relay
services.
Board: 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.
FDIC: Manuel E. Cabeza, Counsel,
(202) 898–3767, Legal Division, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
FOR FURTHER INFORMATION CONTACT:

SUPPLEMENTARY INFORMATION:

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I. Affected Reports
The proposed changes discussed
below affect the Call Reports and the
FFIEC 002.
A. Call Report
The agencies propose to extend for
three years, with revision, their
information collections associated with
the FFIEC 031, FFIEC 041, and FFIEC
051 Call Reports.
Report Title: Consolidated Reports of
Condition and Income (Call Report).
Form Number: FFIEC 031
(Consolidated Reports of Condition and
Income for a Bank with Domestic and
Foreign Offices), FFIEC 041
(Consolidated Reports of Condition and
Income for a Bank with Domestic
Offices Only), and FFIEC 051
(Consolidated Reports of Condition and
Income for a Bank with Domestic
Offices Only and Total Assets Less Than
$5 Billion).
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.
Type of Review: Revision and
extension of currently approved
collections.
OCC:
OMB Control No.: 1557–0081.
Estimated Number of Respondents:
1,015 national banks and federal savings
associations.
Estimated Average Burden per
Response: 40.76 burden hours per
quarter to file.
Estimated Total Annual Burden:
165,486 burden hours to file.
Board:
OMB Control No.: 7100–0036.
Estimated Number of Respondents:
699 state member banks.
Estimated Average Burden per
Response: 44.21 burden hours per
quarter to file.
Estimated Total Annual Burden:
123,611 burden hours to file.
FDIC:
OMB Control No.: 3064–0052.
Estimated Number of Respondents:
2,990 insured state nonmember banks
and state savings associations.
Estimated Average Burden per
Response: 38.95 burden hours per
quarter to file.
Estimated Total Annual Burden:
465,842 burden hours to file.
The estimated average burden hours
collectively reflect the estimates for the
FFIEC 031, the FFIEC 041, and the
FFIEC 051 reports for each agency.
When the estimates are calculated by
type of report across the agencies, the
estimated average burden hours per
quarter are 84.53 (FFIEC 031), 54.60
(FFIEC 041), and 34.52 (FFIEC 051). The

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changes to the Call Report forms and
instructions proposed in this notice
would result in an estimated increase in
burden hours per quarter for the FFIEC
051 of 0.12 hours. This increase in
burden results from the proposed
change in frequency for Schedule RC–
M, Memoranda, items 8.a. through 8.c,
as discussed in Section II. C, below. The
proposed revisions and clarifications in
this notice are not anticipated to change
the estimated burden for the FFIEC 031
and the FFIEC 041. The estimated
burden per response for the quarterly
filings of the Call Report is an average
that varies by agency because of
differences in the composition of the
institutions under each agency’s
supervision (e.g., size distribution of
institutions, types of activities in which
they are engaged, and existence of
foreign offices).
Type of Review: Extension and
revision of currently approved
collections. In addition to the proposed
revisions discussed below, Call Reports
are periodically updated to clarify
instructional guidance and correct
grammatical and typographical errors on
the forms and instructions, which are
published on the FFIEC website.1 These
non-substantive updates may also be
commented upon.
Legal Basis and Need for Collections
The Call Report information
collections are mandatory: 12 U.S.C. 161
(national banks), 12 U.S.C. 324 (state
member banks), 12 U.S.C. 1817 (insured
state nonmember commercial and
savings banks), and 12 U.S.C. 1464
(federal and state savings associations).
At present, except for selected data
items and text, these information
collections are not given confidential
treatment.
Banks and savings associations
submit Call Report data to the agencies
each quarter for the agencies’ use in
monitoring the condition, performance,
and risk profile of individual
institutions and the industry as a whole.
Call Report data serve a regulatory or
public policy purpose by assisting the
agencies in fulfilling their shared
missions of ensuring the safety and
soundness of financial institutions and
the financial system and protecting
consumer financial rights, as well as
agency-specific missions affecting
federal and state-chartered institutions,
such as conducting monetary policy,
ensuring financial stability, and
administering federal deposit insurance.
Call Reports are the source of the most
current statistical data available for
1 www.ffiec.gov/forms031.htm; www.ffiec.gov/
forms041.htm; www.ffiec.gov/forms051.htm.

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identifying areas of focus for on-site and
off-site examinations. Among other
purposes, the agencies use Call Report
data in evaluating institutions’ corporate
applications, including interstate merger
and acquisition applications for which
the agencies are required by law to
determine whether the resulting
institution would control more than 10
percent of the total amount of deposits
of insured depository institutions in the
United States. Call Report data also are
used to calculate the risk-based
assessments for insured depository
institutions.
B. FFIEC 002 and 002S
The Board proposes to extend for
three years, with revision, the FFIEC
002 and FFIEC 002S reports.
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 forprofit.
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—183; FFIEC 002S—18.
Estimated Average Burden per
Response: FFIEC 002—24.67 hours;
FFIEC 002S—6.0 hours.
Estimated Total Annual Burden:
FFIEC 002—18,058 hours; FFIEC 002S—
432 hours.
Type of Review: Extension and
revision of currently approved
collections.
The proposed revisions to the FFIEC
002 instructions in this notice would
not have a material impact on the
existing burden estimates.
Legal Basis and Need for Collection
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 also are used to augment
the bank credit, loan, and deposit
information needed for monetary policy
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addition, FFIEC 002 data are used to
calculate the risk-based assessments for
FDIC-insured U.S. branches of foreign
banks. 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.
These information collections are
mandatory (12 U.S.C. 1817(a)(1) and (3),
3102(b), and 3105(c)(2)). 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)).
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.
II. Current Actions
A. ASU 2022–02, ‘‘Financial
Instruments—Credit Losses (Topic 326):
Troubled Debt Restructurings and
Vintage Disclosures’’
1. Background
On March 31, 2022, the FASB issued
ASU 2022–02 which eliminates the
troubled debt restructuring (TDR)
recognition and measurement guidance
for entities that have adopted ASU
2016–13, ‘‘Financial Instruments—
Credit Losses (Topic 326): Measurement
of Credit Losses on Financial
Instruments’’ (ASU 2016–13). Instead of
identifying and accounting for TDRs
separately from other loan
modifications, all loans modified from
the beginning of the fiscal year in which

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the new standard is adopted by an
institution would be accounted for in
accordance with ASC Section 310–20–
35, Receivables—Nonrefundable Fees
and Other Costs—Subsequent
Measurement, as amended by ASU
2022–02. In addition, the new standard
enhances financial statement disclosure
requirements for certain loan
modifications to borrowers experiencing
financial difficulty. These disclosures
include quantitative information about
the modifications and their performance
and qualitative information regarding
how initial modifications and
subsequent performance of such
modifications impact the allowance for
credit losses.
Upon adoption of ASU 2022–02, an
institution would have the option to use
a modified retrospective transition
method to account for those TDRs that
existed as of the last day of the fiscal
year preceding the fiscal year in which
the standard was implemented. For
these TDRs, an institution would
recognize a cumulative-effect
adjustment to the beginning balance of
retained earnings as of the first day of
the fiscal year resulting from the
adoption of ASU 2022–02. Institutions
that opt to apply ASU 2022–02
prospectively would continue applying
the TDR guidance to the existing TDR
loans for allowance for credit losses
purposes until the loans are paid in full
or otherwise settled, sold, charged-off,
or subsequently modified.
Regardless of the transition method
applied to existing TDRs, institutions
would apply ASU 2022–02 to all
modifications made from the beginning
of the fiscal year of adoption and in
subsequent reporting periods.
Institutions would only include loans
that were modified to borrowers
experiencing financial difficulty from
the beginning of the fiscal year of
adoption and in subsequent periods in
their disclosures for financial statement
purposes. TDRs or modifications made
prior to the beginning of the fiscal year
of adoption would not be included in
these enhanced disclosures in the
period of adoption or in any subsequent
periods.
Additionally, per ASU 2022–02, an
institution would not be required to use
a discounted cash flow (DCF) approach
to measure the allowance for credit loss
on the modified loans. However, if an
institution chooses to use a DCF
approach, it would be required to use
the post-modification effective interest
rate to discount expected cash flows.
Modified loans for which repayment is
expected to be provided substantially
through the operation or sale of the
collateral when the borrower is

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experiencing financial difficulty would
still be considered to be collateral
dependent. For regulatory reporting
purposes, the allowance for credit losses
for a collateral dependent loan would
continue to be measured using the fair
value of collateral (less cost to sell,
when appropriate), regardless of
whether foreclosure is probable.
ASU 2022–02 is effective for all
institutions that have adopted ASU
2016–13 for fiscal years beginning after
December 15, 2022, including interim
reporting periods within those fiscal
years. For all other institutions, the
effective date for ASU 2022–02 would
be the same as the effective date for
ASU 2016–13.
2. Proposed Changes
In response to ASU 2022–02, the
agencies are proposing revisions to the
Call Report forms and instructions. In
general, these revisions would align the
data collected in the Call Report forms
and instructions with the definition of
loan modifications to borrowers
experiencing financial difficulty that is
used in U.S. generally accepted
accounting principles (GAAP). The
banking agencies are proposing to
replace, as appropriate, references to
‘‘troubled debt restructurings’’ with
‘‘modifications to borrowers
experiencing financial difficulty’’ in the
Call Report forms and instructions, and
to update the Glossary to reflect the
change in accounting for modifications
to borrowers experiencing financial
difficulty.
These changes are intended to
provide data needed to monitor banks’
safety and soundness and for FDIC
deposit insurance assessment purposes.
The proposed revisions would assist the
agencies in gaining a better
understanding of banks’ credit
exposures. Specifically, the loan
modifications to borrowers experiencing
financial difficulty reported in Call
Report Schedule RC–C, Part I, Loans
and Leases, Memorandum item 1, and
Schedule RC–N, Past Due and
Nonaccrual Loans, Leases, and Other
Assets, Memorandum item 1 would
enable the agencies to better understand
the level of loan modification activity at
institutions and the categories of loans
involved in this activity. The agencies
would benefit from continued reliable
data outside of on-site examinations to
assess modification activity, particularly
given current increased risks related to
commercial real estate loans and
commercial and industrial loans. In
addition, the proposed changes are
needed to calculate deposit insurance
assessments for large or highly complex

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institutions as defined in FDIC
regulations.2
Institutions that have fiscal years
beginning in the fourth quarter of 2023,
and choose not to early adopt the
standard, will not apply the standard in
the Call Report and/or the FFIEC 002
until the December 31, 2023, report
date. The proposed revisions to specific
data items resulting from the
elimination of the TDR recognition and
measurement guidance would be
reflected in the forms as of the March
31, 2024, report date, as outlined in the
following descriptions of the proposed
changes to the affected Call Report and
FFIEC 002 schedules.
Through December 31, 2023, the
quarterly Supplemental Instructions for
the Call Report will include guidance
for institutions that have adopted ASU
2022–02 on reporting the data items
related to loan modifications to
borrowers experiencing financial
difficulty.
3. Specific Revisions to the Call Reports
Schedule RC–C and Schedule RC–N
Upon adoption of ASU 2022–02,
institutions would continue to report
detail on loan modifications to
borrowers experiencing financial
difficulty in Call Report Schedule RC–
C, Part I, Loans and Leases,
Memorandum item 1, and Schedule RC–
N, Past Due and Nonaccrual Loans,
Leases, and Other Assets, Memorandum
item 1. However, the modifications
reported in these Memoranda items
would need to meet the definition of
‘‘loan modifications to borrowers
experiencing financial difficulty’’ as
described in ASU 2022–02, rather than
the GAAP definition related to
‘‘troubled debt restructurings.’’ Loan
modifications to borrowers experiencing
financial difficulty include financing
receivables that had been modified in
the form of principal forgiveness, an
interest rate reduction, an other-thaninsignificant payment delay, or a term
extension (or a combination thereof).
The Call Report forms and instructions
would be updated to include in the item
descriptions and instructions references
to ‘‘loan modifications to borrowers
experiencing financial difficulty’’ and
remove references to the TDR
framework.
2 On October 18, 2022, the FDIC Board adopted
a final rule to incorporate ASU 2022–02, available
at: https://www.fdic.gov/news/board-matters/2022/
2022-10-18-notice-sum-b-fr.pdf, in the risk-based
deposit insurance assessment system applicable to
all large and highly complex insured depository
institutions as defined in the FDIC’s assessment
regulations. See 12 CFR 327.8(f), (g) and 12 CFR
327.16(b).

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Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices
The Call Report provides the agencies
with data to be used in monitoring the
condition, performance, and risk profile
of individual institutions and the
industry as a whole. This data serves a
regulatory or public policy purpose by
assisting the agencies in fulfilling their
shared missions of ensuring the safety
and soundness of supervised financial
institutions and the stability of the
financial system utilizing statistical data
for identifying areas of focus for both
on-site and off-site supervision. The
information needed for these purposes
at times may differ from information
required by GAAP as accounting
standards are not specifically tailored to
the needs of the financial institution
regulators.
ASU 2022–02 requires financial
statement disclosures on loan
modifications to borrowers experiencing
financial difficulty made ‘‘within the
previous 12 months preceding the
payment default when the debtor was
experiencing financial difficulty at the
time of the modification.’’ 3 However, as
evidenced by the modifications made
during the COVID–19 pandemic in
2020, 2021, and 2022, it may take longer
than 12 months following the
modification to assess whether loans are
performing in accordance with their
modified terms and if the borrower is no
longer experiencing financial difficulty.
Reporting modifications on the Call
Report for a period greater than 12
months would increase the reporting
period beyond that required by the
financial statement disclosure
requirements in ASU 2022–02.
However, the ability to monitor
modifications made by institutions to
borrowers experiencing financial
difficulty provides useful supervisory
information on the borrower’s
continued performance or lack thereof
on the modified loan. Due to these
factors, the agencies are proposing to
require reporting of these modifications
for a minimum period of 12 months and
until an institution performs a current,
well documented credit evaluation to
support that the borrower is no longer
experiencing financial difficulty, unless
the loan is paid off, charged-off, sold, or
otherwise settled. Performing a current,
well documented credit evaluation to
support that the borrower is no longer
experiencing financial difficulty is
consistent with the Interagency
Guidelines Establishing Standards for
Safety and Soundness issued by the
Board, FDIC, and OCC,4 which
3 See

ASC 310–10–50–44.
CFR part 30, appendix A (OCC); 12 CFR part
208 Appendix D–1 (Board); and 12 CFR part 364
appendix A (FDIC).
4 12

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articulate safety and soundness
standards for supervised financial
institutions to establish and maintain
prudent credit underwriting practices
and maintain systems to identify
distressed assets and manage
deterioration in those assets.
The agencies invite comment on this
proposal and are particularly interested
in understanding any operational
challenges and the nature of any loan
systems changes necessary to
accommodate the Call Report collection
of data on loan modifications to
borrowers experiencing financial
difficulty for a minimum period of 12
months and until an institution
performs a current, well documented
credit evaluation to support that the
borrower is no longer experiencing
financial difficulty, unless the loan is
paid off, charged-off, sold, or otherwise
settled.
Question 1: What additional factors, if
any, should the agencies consider when
determining the length of time that a
loan modification to a borrower
experiencing financial difficulty must
be reported in Schedule RC–C and RC–
N memoranda items?
Question 2: What are the advantages
or disadvantages of reporting loan
modifications for a period longer than
12 months as required for financial
statement disclosures for applicable
institutions under ASU 2022–02?
Schedule RC–M
Upon adoption of ASU 2022–02,
institutions would continue to report
detail on other real estate owned in
Schedule RC–M, Memoranda, item 3.
However, instructional references to
ASC Subtopic 310–40, ReceivablesTroubled Debt Restructurings by
Creditors (ASC Subtopic 310–40) would
be updated to ASC Subtopic 310–20,
Receivables-Nonrefundable Fees and
Other Costs (ASC Subtopic 310–20). The
Call Report instructions would be
updated to include the updated
codification references.
Schedule RC–O
Upon adoption of ASU 2022–02,
institutions that meet the FDIC’s
definition of large institutions or highly
complex institutions for deposit
insurance assessment purposes would
continue to report loans that have been
modified to borrowers experiencing
financial difficulty in Call Report
Schedule RC–O, Other Data for Deposit
Insurance Assessments, renamed
Memorandum item 16, ‘‘Portion of loan
modifications to borrowers experiencing
financial difficulty that are in
compliance with their modified terms
and are guaranteed or insured by the

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U.S. government (including the FDIC)
(included in Schedule RC–C, Part I,
Memorandum item 1).’’ However, the
modifications reported in this
Memorandum item would be those that
are guaranteed or insured by the U.S.
government (including the FDIC) and
meet the definition of ‘‘loan
modifications to borrowers experiencing
financial difficulty,’’ rather than the
definition related to ‘‘loans restructured
in troubled debt restructurings.’’ Both
the FFIEC 031 and FFIEC 041 Call
Report forms and instructions would be
updated to include in the item
descriptions and instructions references
to ‘‘loan modification to borrowers
experiencing financial difficulty’’ as
described in ASU 2022–02 and remove
references to the TDR framework.
Glossary
Effective March 31, 2024, to address
the elimination of the TDR recognition
and measurement guidance in ASU
2022–02, the agencies propose to revise
or eliminate, as appropriate, the
following Glossary entries to provide
additional information for those
institutions that have adopted ASU
2022–02 and to remove redundant
entries: (1) ‘‘Allowance for Credit
Losses,’’ (2) ‘‘Foreclosed Assets,’’ (3)
‘‘Loan Fees,’’ (4) ‘‘Nonaccrual Status,’’
(5) ‘‘Renegotiated Troubled Debt,’’ (6)
‘‘Troubled Debt Restructurings,’’ (7)
‘‘Loan Impairment,’’ and (8) ‘‘Purchased
Credit-Impaired Loans and Debt
Securities.’’ Additionally, a new entry
for ‘‘Loan Modifications to Borrowers
Experiencing Financial Difficulty’’
would be included in the Glossary.
4. Revisions to the FFIEC 002
The Board’s proposed revisions to the
FFIEC 002 are intended to align with
similar changes proposed to the Call
Report and discussed in the prior
section.
Schedule N
Upon adoption of ASU 2022–02,
institutions would continue to report
detail on loan modifications to
borrowers experiencing financial
difficulty in FFIEC 002 Schedule N, Past
Due, Nonaccrual, and Restructured
Loans, Columns C and D. The
modifications reported in these columns
would meet the definition of
‘‘modifications to borrowers
experiencing financial difficulty’’ as
described in ASU 2022–02, rather than
the definition related to ‘‘troubled debt
restructurings.’’ The FFIEC 002
instructions would be updated to
include references to ‘‘modifications to
borrowers experiencing financial

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Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices

difficulty’’ and remove references to the
TDR framework.
The agencies are proposing to align
the time period for reporting applicable
items on Schedule N with the Call
Report Memorandum items described
above.

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B. Past Due Definition
The definition used to report loans as
‘‘past due’’ is provided in the General
Instructions to Schedule RC–N, Past
Due and Nonaccrual Loans, Leases, and
Other Assets. The agencies have become
aware of questions regarding the
classification of loans as past due,
particularly when a past-due loan is in
the process of being extended or
refinanced.5 To address these questions
and improve the consistency of past due
reporting across institutions, the
agencies are proposing three changes to
the Schedule RC–N general instructions
that define ‘‘past due’’. First, the
proposed revisions clarify that reporting
institutions must report as past due any
loans that the reporting institution is in
the process of restructuring if the
restructuring process has not concluded
(i.e., the restructuring has not been
executed or become effective). Second,
the proposed revisions would clarify
that a loan or other asset should be
reported as past due when either an
interest payment or principal payment
is due and unpaid for 30 days or longer.
Third, the proposed revisions would
restructure the definition to clarify the
general rules for reporting past due
loans, the exceptions to those general
rules, and nonexclusive examples of
reporting past due loans or other assets
consistent with those instructions.
Question 3: What, if any, other
clarifications to the definition of ‘‘past
due’’ should the agencies consider that
would improve usability by institutions
and comparability across the
institutions?
Question 4: While the agencies do not
intend that these proposed changes
would materially alter the way
institutions currently assess and report
past due loans, do institutions view any
burden associated with implementing
these proposed changes?
C. Depository Institution Trade Names
and Deposit Accepting URLs
Schedule RC–M, Memoranda, items
8.a. through 8.c. request information on
institutions’ websites and trade names,
particularly those used to solicit
deposits. The agencies added these
items to enable the FDIC to effectively
serve as an information resource for
5 See, e.g., United States v. Harra, 985 F.3d 196
(3d Cir. 2021).

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depositors and the public seeking to
identify the insured status of a physical
branch office or internet website that
uses a trade name rather than the legal
name of the insured institution.
However, the FDIC has observed some
institutions reporting internet websites
or trade names of non-bank entities,
including third parties that accept or
solicit deposits from the public on
behalf of the FDIC-insured depository
institution. As a result, the FDIC cannot
effectively use this information to assist
bank customers and the public in
determining the insured status of an
institution which is using a website or
trade name to solicit deposits.
In order to improve the effectiveness
and usability of reporting these items,
the agencies are proposing to clarify the
instructions for items 8.a through 8.c.
For item 8.a, ‘‘Uniform Resource Locator
(URL) of the reporting institution’s
primary internet website (home page), if
any’’ the agencies would clarify that
institutions would not report URLs of
affiliates that are not insured depository
institutions. For item 8.b, ‘‘URLs of all
other public-facing internet websites
that the reporting institution uses to
accept or solicit deposits from the
public, if any’’ the agencies would
revise the instructions to clarify that an
FDIC-insured depository institution
would only reports URLs of publicfacing internet websites operated by the
reporting FDIC-insured depository
institution. The agencies would also
clarify the instructions to indicate that
an FDIC-insured depository institution
would not report internet websites of
any non-bank entity, including any
third parties that accept or solicit
deposits from the public on behalf of the
reporting FDIC-insured depository
institution. These third parties, which
would not be reported in this item,
would include any person or entity
other than the insured institution that is
acting as fiduciary in the placement of
deposit funds into an FDIC-insured
depository institution as described
under 12 CFR 330.5 and 330.7 that is
commonly referred to as ‘‘pass-through’’
deposit insurance coverage. For item
8.c, ‘‘Trade names other than the
reporting institution’s legal title used to
identify one or more of the institution’s
physical offices at which deposits are
accepted or solicited from the public, if
any’’ the agencies would clarify the
instructions to exclude reporting of any
non-bank affiliates or subsidiaries
regardless of whether these entities
solicit deposits.
In addition, the agencies are
proposing to increase the frequency of
reporting of these items on the FFIEC
051 from semi-annually to quarterly.

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Currently, items 8.a through 8.c are
completed on a quarterly basis by
institutions filing the FFIEC 031 and
FFIEC 041 Call Report form and semiannually by those institutions filing the
FFIEC 051 Call Report form. Quarterly
reporting by the FFIEC 051 filers would
provide more current information to
assist the FDIC with identifying the
insured status of institutions using the
websites or trade names to solicit
deposits.
Question 5: The current instructions
for item 8 request information regarding
websites ‘‘operated by’’ an FDIC-insured
depository institution. Does the phrase
‘‘operated by’’ capture the appropriate
population of URLs used by FDICinsured depository institutions or would
an alternate phrase such as ‘‘owned by’’
be more appropriate?
Question 6: Would these proposed
instruction revisions clearly distinguish
reporting deposit accepting activities of
the institution under its own websites
and trade names while excluding URLs
used by third parties that facilitate passthrough insurance?
Question 7: What additional burden,
if any, would result from FFIEC 051
filers reporting items 8.a through 8.c on
a quarterly basis?
III. Timing
The proposed revisions to the Call
Reports and the FFIEC 002 would take
effect beginning with the March 31,
2024, report date. The agencies invite
comment on any difficulties that
institutions would expect to encounter
in implementing the systems changes
necessary to accommodate the proposed
revisions to the Call Reports and FFIEC
002 consistent with this effective date.
IV. Request for Comment
Public comment is requested on all
aspects of this joint notice including the
questions that were provided in the
earlier sections. In addition to the
questions included above, comment is
specifically invited on:
(a) Whether the proposed revisions to
the collections of information that are
the subject of this notice 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 as they are
proposed to be revised, including the
validity of the methodology and
assumptions used;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
information collections on respondents,

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Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices
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 joint notice will be shared among
the agencies.
Dated at Washington, DC, on August 29,
2023.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the
Comptroller of the Currency.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
Board of Governors of the Federal Reserve
System.
James P. Sheesley,
Assistant Executive Secretary. Federal
Deposit Insurance Corporation.
[FR Doc. 2023–21132 Filed 9–27–23; 8:45 am]

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BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P

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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Notice of OFAC Sanctions Action
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:

The U.S. Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing the names
of persons that have been placed on
OFAC’s Specially Designated Nationals
and Blocked Persons List (SDN List)
based on OFAC’s determination that one
or more applicable legal criteria were
satisfied. All property and interests in
property subject to U.S. jurisdiction of
these persons are blocked, and U.S.
persons are generally prohibited from
engaging in transactions with them.
OFAC is also publishing updates to the
identifying information of three persons
currently included on the SDN List.
DATES: See SUPPLEMENTARY INFORMATION
section for effective date(s).
SUMMARY:

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FOR FURTHER INFORMATION CONTACT:

OFAC: Bradley T. Smith, Director, tel.:
202–622–2490; Associate Director for
Global Targeting, tel.: 202–622–2420;
Assistant Director for Licensing, tel.:
202–622–2480; Assistant Director for
Regulatory Affairs, tel.: 202–622–4855;
or the Assistant Director for Sanctions
Compliance & Evaluation, tel.: 202–622–
2490.
SUPPLEMENTARY INFORMATION:

Electronic Availability
The SDN List and additional
information concerning OFAC sanctions
programs are available on OFAC’s
website (https://www.treasury.gov/ofac).
Notice of OFAC Action(s)
A. On September 14, 2023, OFAC
determined that the property and
interests in property subject to U.S.
jurisdiction of the following persons are
blocked under the relevant sanctions
authority listed below.
BILLING CODE 4810–AL–P

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