Year-end 2021 bank call reports will include line to indicate SA-CCR opt-in; DTA instructions unchanged for now

All three versions of the federal banking agencies’ call reports for supervised institutions will include an item allowing institutions to indicate if they have voluntarily adopted or voluntarily elected the standardized approach for counterparty credit risk (SA-CCR) beginning with the Dec. 31, 2021, report date, according to a Financial Institution Letter (FIL) issued Tuesday.

The change adds a new line item 31.b, ‘‘Standardized Approach for Counterparty Credit Risk opt-in election,” to Schedule RC–R, Part I, Regulatory Capital Components and Ratios, on all versions of the call report (FFIEC 031, FFIEC 041, and FFIEC 051), the Federal Deposit Insurance Corp. (FDIC) said in Tuesday’s FIL.

“This information allows for enhanced comparability of the reported derivative data and for better supervision of the implementation of the framework at these institutions,” according to the FIL. “Due to the inherent complexity of adopting SA–CCR, identification of non-advanced approaches institutions that choose to voluntarily adopt SA–CCR is particularly important for their supervision.”

Meanwhile, the agencies – the FDIC, Federal Reserve, and Office of the Comptroller of the Currency (OCC) – are deferring action on DTAs pending further review.

The FDIC letter states that the agencies are still considering comments received on the proposed rule on tax allocation agreements issued this spring, so they are deferring consideration of any instructional changes related to the reporting of DTAs to a future Paperwork Reduction Act notice. It says the two comment letters received on this item will be considered when developing that notice.

FDIC FIL-72-2021

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