Call Report for Banks - Recent Changes, Highlights, and Pitfalls
Course Number: Webinar
Course Code: n/a
The regulators are continuing on their burden reducing approach and announced more reductions in November 2018 to the FFIEC 051 forms. The regulators are proposing to increase the small bank eligibility size for filing on the FFIEC 051 form from $1 billion in assets size to $5 billion and to make more line items required only semi-annually. The most significant change to semi-annual reporting will be RCR Pt II lines 1-25, the detail reporting of both on and off balance sheet risk weighting. Total risk weighted assets however, will still be required to be reported. Banks with assets of more than $1 billion will be required to report the consumer deposit detail information on balances and service charges in December only; schedule RIC semi-annually; RCO M2 on a quarterly basis. In a second proposal the regulators are considering regulatory burden relief to qualifying community banking organizations by allowing an option to calculate a simple leverage ratio, rather than multiple measures of capital adequacy.
In September, 2018 the regulators issued proposed revisions to the 2019 Call Report to align the information in the call report with the new credit loss accounting standard. The changes include updates to twelve schedules to address the broader scope of financial assets for which an allowance for credit losses must be established and maintained. Under a CECL proposed notice of rulemaking, a bank may elect to phase in the regulatory capital impact of adopting CECL over a three year period.
Changes to reporting of high volatility commercial real estate (HVCRE) exposures as well as reciprocal deposits were included in the June, 2018 supplemental instructions.
The webinar will cover the latest revisions, including the November and September, 2018 proposed changes to March, 2019. In addition, updates due to revisions in accounting standards, other areas of concern, and common errors made during call report preparation will be reviewed.
2019 Proposed Revisions:
-Further burden reducing updates to the FFIEC 051 forms, including semi-annual reporting of RCR Pt II lines 1-25 (November, 2018)
-Option to calculate a simple leverage ratio, rather than multiple measures of capital adequacy for banks that meet certain criteria
-FFIEC 041 and 051 schedule changes due to address the broader scope of financial assets for which an allowance for credit losses must be established and maintained
Recent Accounting Updates (equities, leases, other real estate)
Common Errors Made in Call Report Preparation
Audience: This update will benefit more experienced Call Report preparers, reviewers, and auditors. It will supplement annual comprehensive Call Report training recommended by bank regulators.