The Federal Financial Institutions Examination Council (FFIEC) continues to advance its initiative launched in December 2014 to identify potential opportunities to reduce the burden on community banks from Consolidated Reports of Condition and Income (Call Report) requirements. The initiative identified five areas for responding to industry concerns about the cost and burden of Call Report preparation.
Revisions to the Call Report
The FFIEC proposed Call Report revisions based on a portion of nine user surveys conducted from July 2015 through February 2017, comments received on its August 2016 Call Report proposal and other outreach. The proposed Call Report revisions include removal of certain items, combining various line items, reporting frequency changes and new or revised reporting thresholds. Below is a table of the proposed data revisions in the notice.
In addition to the changes above, the FFIEC also proposes two revisions not related to the burden-reduction initiative.
- Revise the method described in the Call Report instructions for determining past-due status for loans and leases reported in Schedule RC-N. The revised instructions will require loans with payments scheduled monthly to be reported as past due if a payment isn’t received by the end of the day immediately preceding the loan’s next payment due date. The purpose of the change is to better align Call Report instructions with an industry standard, known as the Mortgage Bankers Association method, which will reduce the burden for certain institutions calculating past-due loans under two methods for different reporting purposes.
- Revise portions of several Call Report schedules to incorporate revised accounting for equity securities under Accounting Standards Update 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities.
The proposed changes would become effective with the March 31, 2018, Call Report publication. The FFIEC is requesting comments be submitted on or before August 28, 2017. Full details of the proposed changes and instructions on submitting comments can be found in the Federal Register.