[Federal Register Volume 60, Number 164 (Thursday, August 24, 1995)]
[Notices]
[Pages 44116-44118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20948]
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DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
[No. 95-157]
Proposed Reduction of Data Collected on the Thrift Financial
Report
AGENCY: Office of Thrift Supervision, Treasury.
ACTION: Notice; request for comment.
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SUMMARY: The Office of Thrift Supervision (OTS) requests comment on a
proposal to fully consolidate and substantially reduce the amount of
data submitted on the quarterly Thrift Financial Report (TFR). A
streamlined, consolidated TFR has been developed in an effort to reduce
the thrift industry's regulatory reporting burden while ensuring that
the OTS will still collect information necessary to monitor safety and
soundness. The effective date for the streamlined TFR would be June
1996.
DATES: Comments must be received on or before October 23, 1995.
ADDRESSES: Send comments to Chief, Dissemination Branch, Thrift
Supervision, 1700 G Street, NW., Washington DC 20552, Attention Docket
No. 95-157. These submissions may be hand delivered to 1700 G Street
NW. from 9:00 a.m. to 5:00 p.m. on business days; they may be sent by
facsimile transmission to FAX Number (202) 906-7755. Comments will be
available for inspection at 1700 G Street NW., from 1:00 p.m. until
4:00 p.m. on business days.
FOR FURTHER INFORMATION CONTACT: Patrick G. Berbakos, Assistant
Director, Financial Reporting Division, (202) 906-6720, or Catherine
Shepard, Senior Attorney, Regulations and Legislation Division, Office
of Chief Counsel (202) 906-7275; Office of Thrift Supervision, 1700 G
Street NW., Washington, D.C. 20552.
SUPPLEMENTARY INFORMATION: As part of its continuing effort to reduce
the regulatory burden for the thrift industry, the OTS proposes to
significantly streamline the TFR beginning in June 1996. The agency,
after consulting with its Washington and Regional examination,
supervisory, and legal staff, has identified several TFR schedules and
over 300 lines of data that can be eliminated. More than half of these
items are being deleted as a result of converting the TFR into a fully
consolidated format. Today OTS is seeking public comment on whether
these proposed eliminations will reduce long-term regulatory costs and
burdens for the industry and be consistent with safety and soundness
and other public policy objectives.
I. Background
The OTS has implemented a number of program changes during the past
three years in an effort to enhance the efficiency of the financial
reporting process, reduce the industry's reporting burden, increase
customer service, and reduce the costs for both the industry and the
OTS. The program changes included the elimination of the monthly data
collection for the TFR, amending the reporting schedule to provide
additional time for report preparation, and providing the industry with
electronic filing software that facilitates the electronic preparation
and filing of all regulatory reports.
II. Description of Proposed Changes to 1996 TFR
After reviewing its current supervisory and examination needs, the
OTS is proposing to eliminate 324 lines of data currently collected on
the TFR. This decrease represents 40 percent of the TFR, exclusive of
Schedule CMR, which is unaffected by this proposal. Lines of data and
schedules that are no longer necessary because of changes in the
industry's portfolio or OTS's supervisory priorities will no longer be
collected. Only data that remain critical to meet supervisory needs,
statutory
[[Page 44117]]
mandates, or other important policy objectives will be collected.
OTS is providing copies of this notice and a line-by-line
description of the proposed TFR changes to all OTS-regulated savings
associations. All other interested parties may obtain a line-by-line
description of the proposal by calling (202) 906-6078. The following
gives a schedule-by-schedule overview of the types of changes the OTS
is proposing:
Schedule SC--Statement of Condition
1. Delete the detail regarding real estate held for investment;
retain a subtotal for real estate held for investment.
2. Delete the breakdown of equity investment in and loans to
service corporations and subsidiaries; retain a subtotal for
investments and loans to service corporations and subsidiaries.
3. Delete the detail of office premises and equipment; retain a
subtotal for office premises and equipment.
4. Delete SC-680 (Property Leased to Others).
Schedule SO--Statement of Operations
1. Delete the item for penalties on early withdrawal of deposits.
2. Delete four items under noninterest income, which will be
included in other noninterest income.
3. Combine net income from REO operations with gains and losses
from the sale of REO and other repossessed assets.
4. Combine gains and losses on the sale of assets.
Schedule CA--Capital Accounts
Delete the entire schedule as it will be replaced by the expanded
reconciliation of equity in Schedule CSI.
Schedule VA--Valuation Allowances
Delete the detail of charge-offs and recoveries for Cash, Deposits,
and Investment Securities and Real Estate Held for Investment; retain a
subtotal for these assets.
Schedule PD--Past Due
Delete the miscellaneous data on Schedule PD.
Schedule TA--Troubled Assets
Retain troubled debt restructured and classification of assets data
and delete all other data in this schedule. Add a new item summarizing
mortgage loans foreclosed during the quarter.
Schedule CC--Commitments and Contingencies
Delete information on futures, options, new commitments, and other
miscellaneous data on commitments.
Schedule CF--Selected Cash Flow Information
Retain activity data on mortgage pool securities, mortgage loans,
nonmortgage loans, and deposits and delete other miscellaneous data.
Schedule SI--Supplemental Information Deposit Data
1. Delete reference to deposits of $80,000, retaining only the
$100,000 cut-off.
2. Delete data that can be obtained from Schedule CMR.
Other Data
Delete all data items in this section with the exception of SI-350
(Approximate Value of Trust Assets Administered) and SI-370 (Number of
Full-time Equivalent Employees).
Equity Investments
Delete this section in its entirety.
Regulatory Liquidity
Retain the liquidity ratio and delete the amount of assets eligible
for regulatory liquidity.
FSLIC Guarantees and Assistance
Delete these sections in their entirety.
Schedule SQ--Supplemental Questions
Retain questions concerning the structure of assets and liabilities
and accounting considerations and delete all other questions.
Schedule TR--Assets in Trading Accounts
Delete this entire schedule and move data items regarding total
assets held in trading accounts and securities available for sale and
assets held for sale to Schedule SI.
Schedule YD--Yields on Deposits
Delete items referencing $80,000--$100,000 certificate amounts.
Schedule AS--Annual Supplement
Delete the entire schedule.
Schedule SB--Small Business Loans
This schedule remains unchanged in accordance with Section 122 of
the FDIC Improvement Act.
Schedules CSC and CSO--Consolidated Statements of Condition and
Operations
Delete these two schedules in their entirety because Schedules SC
and SO will be redefined to contain consolidated data.
Schedule CSI--Consolidated Supplemental Information
Delete all line items in this schedule except loan servicing,
reconciliation of equity capital, asset repricing/maturing data and
mutual fund and annuity sales, all of which will be moved to Schedule
SI.
Schedule CSS--Consolidated Subsidiary Listing
Collect this schedule annually at December 31.
Schedule CCR--Consolidated Capital Requirement
Retain this schedule as is with the addition of one line to capture
the assets of subsidiary depository institutions because these assets
will not be consolidated in Schedule SC.
Schedule CMR--Consolidated Maturity/Rate
No changes to this schedule.
III. Alternatives Considered
The OTS considered several alternatives to make the TFR reporting
process less burdensome. The OTS considered reducing the frequency of
the reporting cycle from a quarterly report to a semiannual report,
pursuant to the President's Memorandum of April 21, 1995 on
``Regulatory Reform--Waiver of Penalties and Reduction of Reports,'' 60
FR 20621 (April 26, 1995). However, the reporting cycle has already
been reduced from monthly to quarterly, and the OTS believes that for
reasons of safety and soundness it cannot further reduce the reporting
cycle. In light of the rapidity with which an institution's balance
sheet can change, OTS is concerned that reducing the reporting cycle to
semiannually may prevent the early identification of a deteriorating
situation.
Section 307(b) of the Riegle Community Development and Regulatory
Improvement Act of 1994 requires the Federal banking agencies to work
jointly in adopting a single form for the filing of core financial
information and to streamline the schedules supplementing the core
information by eliminating data requirements that are not warranted for
reasons of safety and soundness or other public interest purposes. The
Federal banking agencies under the auspices of the Federal Financial
Institutions Examination Council (FFIEC) have begun work on the
development of a core report which may take several years to complete.
Since the Commercial Bank Call Report (Call Report) is already prepared
on a consolidated basis, the current OTS proposal to consolidate and
condense the TFR is a critical first step in reaching a uniform core
report. OTS believes that at this time, this alternative
[[Page 44118]]
provides greater benefit for both the thrift industry and OTS and
avoids the extensive systems modifications and retraining of personnel
required by converting to the Call Report immediately.
Finally, OTS considered whether the reporting burden for small
savings associations could be appreciably reduced by developing a
separate TFR for those institutions. OTS believes that such a separate
schedule would not be consistent with supervisory needs. If an
association is engaged in an activity, OTS's supervisory interest is
the same regardless of the institution's size. Under the current TFR
structure, savings associations need not complete line items on
schedules for activities in which they are not engaged.
IV. Request for Comment
The OTS invites comment on all aspects of the proposal and, in
particular, whether the proposal will in fact reduce the TFR reporting
burden. Consideration should be given to the amount of data collected,
the ease of obtaining the data, and the extent to which cost savings
would be realized over time as well as the estimated amount of
implementation costs. The current average burden associated with the
collection of the 1995 TFR is estimated to be 39.1 hours per response,
including the completion of Schedule CMR. The projected average burden
for the proposed TFR, including Schedule CMR, is 29.1 hours. Comment is
also desired on whether an implementation date of June 1996 (rather
than March) would impose a hardship on reporting savings associations
or on other users of the financial data.
The OTS is also interested in receiving comments on whether the
filing deadline for Schedule CMR should be changed from the current 45
days after the close of the quarter to 40 days, or 30 days to coincide
with the TFR filing deadline. This change in the CMR reporting deadline
would facilitate an earlier transmittal of the OTS Interest Rate Risk
Exposure Report to reporting savings associations. Currently, a number
of savings associations of all sizes and with a variety of portfolios
file Schedule CMR within 30 days of the end of the quarter.
V. Paperwork Reduction Act
The reporting requirements contained in this notice have been
submitted to the Office of Management and Budget for review in
accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
3504(h)). Comments on the collections of information should be sent to
the Office of Management and Budget, Paperwork Reduction Project
(1550), Washington, DC 20503, with copies to the Office of Thrift
Supervision, 1700 G Street, N.W., Washington DC 20552.
The reporting requirements in this notice are found in 12 CFR
562.1(b)(2). The information is needed by the OTS to supervise savings
associations and develop regulatory policy. The likely record keepers
are OTS regulated savings associations.
Estimated number of record keepers: 1,514.
Estimated average annual burden per record keeper: 116.4 hours.
Estimated annual frequency of record keeping: 4 (Quarterly).
Estimated total annual record keeping burden: 176,230 hours.
Dated: August 18, 1995.
By the Office of Thrift Supervision.
Jonathan L. Fiechter,
Acting Director.
[FR Doc. 95-20948 Filed 8-22-95; 8:45 am]
BILLING CODE 6720-01 P
