UPDATED: Agencies propose changes to call reports reflecting revisions to regulatory capital rules

Proposed changes to upcoming call reports, resulting from revisions to federal banking agencies’ rules on regulatory capital, are outlined in a letter to financial institutions issued Tuesday by the federal insurer of bank deposits.

UPDATE: A joint Federal Register notice by all three regulators was filed Wednesday under the auspices of the Federal Financial Institutions Examination Council (FFIEC), urging banks and thrifts to file comments about the changes to the call reports.

In the Tuesday letter, the Federal Deposit Insurance Corp. (FDIC), in its Financial Institution Letter (FIL 68-2019), said the proposed regulatory reporting changes apply to all three versions of the call report (FFIEC 031, FFIEC 041, and FFIEC 051), as well as to the reporting form “Regulatory Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework (FFIEC 101).”

The letter notes that the proposed changes to the call report and the FFIEC 101 report would implement various changes to the agencies’ capital rule that the FDIC, Federal Reserve, and Office of the Comptroller of the Currency (OCC) have finalized or are considering finalizing. The proposed capital-related reporting changes would take effect the same quarters as the effective dates of the various currently final or potentially final capital rules.

The letter points out that the proposed call report revisions also include a change in the scope of the FFIEC 031 Call Report, as well as an instructional revision for the reporting of operating lease liabilities in the call report, both of which would take effect March 31, 2020. “Additionally, the agencies have proposed a Call Report instructional clarification for home equity lines of credit that convert from revolving to non-revolving status, which would take effect March 31, 2021,” the letter states.

Among other things, the letter provides instructions for viewing “redlined” versions of the call reports to illustrate where revisions are being proposed.

In the Wednesday FIL (FIL 69-2019), the FDIC noted that redline copies of the FFIEC report forms showing the proposed revisions are available on the umbrella group’s “Reporting Forms” webpage for each report form. Redlined draft revisions to the instructions for these reports soon will be available on these webpages, the FDIC stated.

Comments are due Dec. 3, both letters state.

FIL 68-2019: Proposed Revisions to the Consolidated Reports of Condition and Income (Call Report) and the FFIEC 101 Report

FIL 69-2018: Proposed Regulatory Reporting Revisions

FFIEC Reporting Forms