[Federal Register: November 14, 2007 (Volume 72, Number 219)]
[Proposed Rules]               
[Page 64003-64005]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14no07-18]                         

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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Chapter V

[Docket ID OTS-2007-0023]

 
Proposed Agency Information Collection Activities; Comment 
Request--Information Needed To Respond to a Proposal To Convert From 
the Thrift Financial Report (TFR) to the Call Report

AGENCY: Office of Thrift Supervision (OTS), Treasury.

ACTION: Advance Notice of Proposed Rulemaking (ANPR).

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SUMMARY: The Office of Thrift Supervision is considering requiring 
savings associations to file quarterly Consolidated Reports of 
Condition and Income (Call Report) instead of the Thrift Financial 
Report (TFR) currently filed. This ANPR solicits comments identifying 
information that the thrift industry and the public would need to 
analyze a proposal to convert from the TFR to the Call Report used by 
other federal banking regulators and to amend

[[Page 64004]]

any OTS rules that would be affected by such a change.
    At the end of the comment period, OTS will review the comments and 
conduct any research needed to compile the identified information. OTS 
plans to publish a second notice containing the requested information 
and solicit comments on whether to convert to the Call Report.

DATES: Submit written comments on or before January 14, 2008.

ADDRESSES: You may submit comments, identified by OTS-2007-0023, by any 
of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov
, select ``Office of Thrift Supervision'' from the 

agency drop-down menu, then click submit. Select Docket ID ``OTS-2007-
0023'' to submit or view public comments and to view supporting and 
related materials for this notice of proposed rulemaking. The ``User 
Tips'' link at the top of the page provides information on using 
Regulations.gov, including instructions for submitting or viewing 
public comments, viewing other supporting and related materials, and 
viewing the docket after the close of the comment period.
     Mail: Regulation Comments, Chief Counsel's Office, Office 
of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552, 
Attention: OTS-2007-0023.
     Hand Delivery/Courier: Guard's Desk, East Lobby Entrance, 
1700 G Street, NW., from 9 a.m. to 4 p.m. on business days, Attention: 
Regulation Comments, Chief Counsel's Office, Attention: OTS-2007-0023.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
entered into the docket and posted on Regulations.gov without change, 
including any personal information provided. Comments, including 
attachments and other supporting materials received are part of the 
public record and subject to public disclosure. Do not enclose any 
information in your comment or supporting materials that you consider 
confidential or inappropriate for public disclosure.
    Viewing Comments Electronically: Go to http://www.regulations.gov, 

select ``Office of Thrift Supervision'' from the agency drop-down menu, 
then click ``Submit.'' Select Docket ID ``OTS-2007-0023'' to view 
public comments for this notice of proposed rulemaking.
    Viewing Comments On-Site: You may inspect comments at the Public 
Reading Room, 1700 G Street, NW., by appointment. To make an 
appointment for access, call (202) 906-5922, send an e-mail to 
public.info@ots.treas.gov, or send a facsimile transmission to (202) 

906-6518. (Prior notice identifying the materials you will be 
requesting will assist us in serving you.) We schedule appointments on 
business days between 10 a.m. and 4 p.m. In most cases, appointments 
will be available the next business day following the date we receive a 
request.

FOR FURTHER INFORMATION CONTACT: You can access more information on the 
TFR form and instructions on OTS's Web site via these links:
    TFR report form--http://www.ots.treas.gov/docs/7/78199.pdf    TFR instructions--http://www.ots.treas.gov/docs/4/4210042.pdf.

4210042.pdf.

Web site via these links:
    Call Report form--http://www.fdic.gov/regulations/resources/call/index.html#RptForms
.

    Call Report instructions--http://www.fdic.gov/regulations/resources/call/crinst/callinst2007_march.html
.

    You can request additional information about this proposal by 
sending an e-mail to callreport@ots.treas.gov, or request to Attention: 
Request for Information on Call Conversion at Office of Thrift 
Supervision, 1700 G Street, NW., Washington, DC 20552.

SUPPLEMENTARY INFORMATION: OTS-regulated savings associations (savings 
associations) are required to submit a TFR to OTS each quarter. TFR 
data include information on savings associations and their holding 
companies. Also collected as part of the TFR are detailed maturity and 
rate data used as inputs for the OTS Net Portfolio Value (NPV) Model. 
TFR data are used to monitor the condition, performance, and risk 
profile of individual institutions, systemic risk among groups of 
institutions, and all savings associations as a whole.
    TFR financial data are used to identify areas of focus for both on-
site examinations and off-site monitoring. OTS uses TFR data in 
evaluating interstate merger and acquisition applications to determine, 
as required by law, whether the resulting institutions would control 
more than 10 percent of the total amount of deposits of insured 
depository institutions in the United States. TFR data are also used to 
calculate FDIC deposit insurance premiums and OTS's savings association 
assessments.
    Current Action: OTS is considering whether to convert savings 
associations from the TFR to the Call Report. If this proposal were 
adopted, savings associations would no longer be required to file the 
TFR, but instead would file a Call Report. Savings associations would 
be required to continue filing certain information currently collected 
on the TFR that is not included on the Call Report. This additional 
information would include the Consolidated Maturity Rate data (Schedule 
CMR) and the Holding Company data (Schedule HC). It is anticipated that 
this additional information would be filed as schedules of the Call 
Report. If the additional information cannot be included as schedules 
of the Call Report, it would be filed directly with OTS.
    OTS seeks to supply the industry and the public with the 
information needed to analyze and provide informed comments on the 
proposal. After OTS has researched and compiled the information needed, 
OTS will request comment on the substance of any conversion proposal. 
That proposal would include both the requested information and the 
proposed amendments to any OTS regulations that would need to be 
modified.

Discussion of Proposed Revisions

    Savings associations are currently required to submit quarterly TFR 
reports directly to the OTS. All other FDIC-insured institutions submit 
quarterly Call Reports to the their primary federal regulator via the 
Federal Financial Institutions Examination Council's (FFIEC) Central 
Data Repository (CDR). While the TFR and the Call Report share general 
similarities, there are some significant differences in the data that 
are collected due primarily to differences in industry focus and assets 
between savings associations and commercial banks. There are also 
differences in how the two reporting systems are administered. Some of 
the more significant differences are highlighted below.

Data Collected

    In general, differences in the data collected on the TFR and Call 
Report reflect historic lending differences between banks and savings 
associations. Given savings associations' historic focus on mortgage 
and consumer lending, the TFR collects more detailed information on 
those types of loans, while the Call Report collects more detailed 
information on investment securities and commercial loans.
    In the area of capital, Call Report Schedule RC-R (Regulatory 
Capital) collects many more data items than the TFR Schedule CCR 
(Consolidated Capital Requirement). The Call Report

[[Page 64005]]

also collects more detail on risk-weighted assets by asset class and 
off-balance sheet categories.
    With regard to valuation allowances, TFR Schedule VA collects 
greater detail on general valuation allowances by asset type than does 
the Call Report. The TFR also breaks out specific valuation allowances 
(SVAs), while the Call Report combines SVAs with charge-offs.
    Interest rate risk monitoring is another area of reporting 
difference. TFR Schedule CMR collects detailed on- and off-balance 
sheet repricing data, from which measures of interest rate risk are 
calculated using the proprietary OTS NPV Model. OTS provides each 
savings association its own interest rate risk measures free of charge 
in the Interest Rate Risk Report. By contrast, the Call Report collects 
only limited repricing data.
    Also collected on the TFR are savings association holding company 
data. In contrast, bank holding companies are required to file with the 
Federal Reserve Board quarterly information (FR Y-9 series reports) in 
addition to Call Reports for their insured subsidiaries.
    OTS anticipates that savings associations would be required to file 
a modified version of the Call Report on a quarterly basis, in place of 
the TFR report. As noted above, the modified Call Report would include 
new schedules specific to the OTS-regulated savings associations such 
as:
     Consolidated Maturity/Rate Schedule CMR (or similar loan 
portfolio data),
     Thrift Holding Company data, similar to the current TFR 
Schedule HC, and
     Other supplemental data items.

Savings associations may be exempt from reporting some other Call 
Report items.

Data Collection Methods

    Currently, savings associations are required to file their TFR 
reports electronically using OTS-supplied Electronic Filing Software 
(EFS). This software includes features that assist the user in the 
report preparation process. Savings associations with questions about 
how to use the EFS or how to prepare the TFR report can contact OTS 
directly for customer support.
    If a conversion to the Call Report were implemented, savings 
associations would be required to file their Call Reports 
electronically using filing software purchased from a third-party 
vendor. Savings associations would transmit their Call Report data 
using the technology of the FFIEC's Central Data Repository system.

Staff

    Converting to the Call Report might require savings associations to 
re-train report preparation staff. Call Report preparation training is 
available from independent trade or professional organizations.

Analytical Tools

    Savings associations currently receive the Uniform Thrift 
Performance Report (UTPR), peer group data, and Interest Rate Risk 
reports each quarter through the Financial Reports Subscriber (FRS) 
software provided by OTS.
    If conversion to the Call Report were adopted, the Uniform Bank 
Performance Report (UBPR) would be available for savings associations 
from the FFIEC Web site. Peer Group analyses, including banks, would 
also be available. Savings associations would continue to receive their 
Interest Rate Risk reports from the OTS. The reports would continue to 
be based on the CMR data, whether the data is submitted with the Call 
Report or directly to OTS.

Requests for Comments

    OTS would like to provide sufficient information to enable the 
public to analyze and comment on the proposed conversion from the TFR 
to the Call Report. Please provide comments identifying the information 
you would need to evaluate the proposal. OTS will research and compile 
the information requested. OTS will publish a second notice that will 
include: (1) The requested information, (2) the proposed amendments to 
any OTS regulations that will need to be modified, and (3) a request 
for comment on the proposal to convert from the TFR to the Call Report. 
All comments will become a matter of public record.

    Dated: November 6, 2007.

    By the Office of Thrift Supervision.
John M. Reich,
Director.
[FR Doc. E7-22175 Filed 11-13-07; 8:45 am]

BILLING CODE 6720-01-P