FED is adopting a proposal to extend for three years, with revision, the financial statements for holding companies (FR Y-9 reports) and the consolidated report of condition and income for edge and agreement corporations (FR 2886b). The new revisions to these reports are effective as of March 31, 2021. FED is also finalizing certain revisions that were previously approved on an interim basis. These are revisions to the definition of “savings deposits” in the FR Y-9C and FR 2886b instructions associated with the amendments to the Regulation D (Reserve Requirements of Depository Institutions), collection of two new temporary data items on loan modifications consistent with section 4013(d)(2) of the Coronavirus Aid, Relief and Economic Security (CARES) Act, and collection of four new temporary data items related to the interim final rule implementing the Paycheck Protection Program Liquidity Facility (PPPLF). These changes became effective on June 30, 2020.
On July 07, 2020, FED had published a notice to temporarily revise the FR Y-9C to collect four new data items related to the Paycheck Protection Program (PPP) loans and the PPPLF. As part of this notice, FED had also temporarily revised FR Y-9C to collect two new data items related to section 4013 of the CARES Act. The comment period for the July 2020 notice ended on September 08, 2020. FED did not receive any comments on this proposal and the revisions will be implemented as proposed, with the new data items being collected through December 31, 2021. On October 08, 2020, FED had published a separate notice to propose a number of revisions to the FR Y-9C, FR Y-9LP, and FR Y-9SP related to the U.S. GAAP effective for reports with a March 31, 2021 as-of date, except for proposed revisions related to last-of-layer hedging, which were proposed to become effective following the adoption and implementation of a final standard by FASB.
For holding companies that have adopted Accounting Standards Codification (ASC) Topic 326 on credit losses, FED had proposed in the October 2020 notice to add new Memorandum item 7, “Provisions for credit losses on off-balance sheet credit exposures,” to Schedule HI-B, Part II, Changes in allowances for Credit Losses. As part of the GAAP-related changes, FED had also proposed new Memorandum item 8 to Schedule HI-B, Part II, “Changes in Allowances for Credit Losses,” to the FR Y-9C report. In this same October notice, FED had proposed to finalize, on an interim basis, revisions to the definition of “savings deposits” in the FR Y-9C and FR 2886b instructions that are associated with the amendments to the Regulation D published April 28, 2020. Another FED proposal in the October notice related to revisions to the General Instructions for FR Y-9C Schedule HC-E, Deposit Liabilities, and FR 2886b Schedule RC-E, Deposit Liabilities. The comment period for the October 2020 notice expired on December 07, 2020.
After considering the comments received during the consultation, FED is implementing revisions to the FR Y-9C and FR 2886b reports, with certain modifications from the proposal. The effective date of the proposed revisions to the FR Y-9C and FR 2886b instructions regarding the definition of “savings deposits” is December 31, 2020. The effective date for all other changes is March 31, 2021.
Keywords: Americas, US, Banking, Reporting, FR Y-9C, FR 2886b, CARES Act, COVID-19, Paycheck Protection Program, Regulation D, Call Report, Credit Risk, FED
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