Featured Product

    US Agencies Consult on Data Reporting for Loans to Small Businesses

    October 29, 2019

    US Agencies (FDIC, FED, and OCC) published a request for comment on ways to modify the requirements for reporting data on loans to small businesses and small farms in the Consolidated Reports of Condition and Income (Call Reports) so that the reported data better reflect lending to these sectors of the U.S. economy. The agencies are seeking feedback from all national banks and federal savings associations, including community banks, that report data on Schedule RC-C, Part II, “Loans to Small Businesses and Small Farms.” Data under Schedule RC-C, Part II is reported through Call Reports including FFIEC 031, FFIEC 041, and FFIEC 051. Comment period on this consultation ends on December 16, 2019.

    GAO reviewed the data collected on Call Report Schedule RC-C, Part II as part of a study, which was published in August 2018, on the effect of regulations on small business lending. In summarizing its findings with respect to the Call Report data on loans to small businesses, GAO indicated that the amounts reported by community banks do not accurately capture lending to small businesses. This is because the definition of small business loans excludes loans greater than USD 1 million and these thresholds have not been adjusted for inflation since 1992. In addition, the reported amounts are based on loan size rather than the size of the borrowing entity and, therefore, could include small loans to large businesses. As a conclusion to its review, GAO recommended that the agencies should collaborate to re-evaluate and modify, as needed, the requirements for the data banks report in the Call Reports to better reflect lending to small businesses.

    In response to this recommendation, the agencies are reviewing the data collected on small business and small farm loans on Schedule RC-C, Part II, in the Call Reports to identify options for improving the usefulness of the data reported on these loans. The agencies recognize that institutions already have processes in place that enable them to report their small business and small farm lending data in the Call Reports in accordance with the reporting instructions for Schedule RC-C, Part II, which generally have not been revised since the implementation of Schedule RC-C, Part II, in 1993. Certain options for revisions may change the burden in differing ways, particularly if the options are not aligned with how institutions currently identify loans to small businesses and small farms and then collect and report data on these loans to their managements or internal purposes. The agencies are interested in learning the following:

    • The data institutions collect and maintain on small business and small farm loans in their loan systems and other automated systems for internal purposes
    • The data required to be reported on these loans in Call Report Schedule RC-C, Part II
    • Internal uses of these data by institutions to identify which options may improve the usefulness of the Call Report data collection while considering the burden impact of any adjustments to the current reporting requirements for Schedule RC-C, Part II

    The agencies will use the feedback received in response to this request for comment to assess what steps they should take in response to the recommendation from GAO. After considering the feedback, if the agencies determine that a change to the existing collection of small business and small farm lending data in Schedule RC-C, Part II, is warranted, the agencies would seek further comment on a specific proposal to revise this Call Report schedule in accordance with the Paperwork Reduction Act.


    Related Links

    Comment Due Date: December 16, 2019

    Keywords: Americas, US, Banking, Call Reports, Schedule RC-C, Reporting, Loan to Small Business, FFIEC 031, FFIEC 041, FFIEC  051, GAO, FED, FDIC, OCC

    Featured Experts
    Related Articles

    PRA Publishes Q&A on Property Valuation Requirements Under CRR

    PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.

    May 29, 2020 WebPage Regulatory News

    IOSCO Consults on Outsourcing Principles for Operational Resilience

    IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.

    May 28, 2020 WebPage Regulatory News

    MAS Consortium to Develop AI Fairness Metrics for Credit Scoring

    MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.

    May 28, 2020 WebPage Regulatory News

    BoE Updates Definitions for BTL Data Collection

    BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.

    May 28, 2020 WebPage Regulatory News

    FSI Examines Financial Stability Implications of Payment Deferrals

    FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.

    May 28, 2020 WebPage Regulatory News

    PRA Finalizes Policy on Prudent Person Principle Under Solvency II

    PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.

    May 27, 2020 WebPage Regulatory News

    EBA on Extending Large Exposure Limits for French Systemic Banks

    EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).

    May 27, 2020 WebPage Regulatory News

    ECB Highlights NPL Resolution as Key Policy Issue in Post-COVID Europe

    As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.

    May 27, 2020 WebPage Regulatory News

    RBNZ Publishes Financial Stability Report for May 2020

    RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.

    May 27, 2020 WebPage Regulatory News

    ECB Updates Guidance on Reporting of Securities Holdings Statistics

    ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).

    May 26, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5231