FFIEC Announces Streamline Reporting Initiative for Community Banks
By Anna DeSimone
On September 8, 2015, the Federal Financial Institutions Examination Council (FFIEC) detailed steps regulators are taking to streamline and simplify regulatory reporting requirements for community banks and reduce their reporting burden. The objectives of this community bank burden-reduction initiative are consistent with the early feedback the FFIEC has received as part of the regulatory review being conducted under the Economic Growth and Regulatory Paperwork Reduction Act of 1996.
Each quarter, banks and savings associations submit Consolidated Reports of Condition and Income (Call Reports), which include data used by regulators to monitor the safety and soundness, performance, and risk profile of each institution and to assess the condition of the banking system. Call Report data also help regulators target examination resources and support off-site examinations.
As an initial step by regulators to streamline some reporting requirements, the federal banking agencies, under the auspices of the FFIEC, are seeking comment on proposals to, in part, eliminate or revise several Call Report data items. These changes would not affect credit unions, but would simplify the reporting requirements for banks and savings associations.
In evaluating changes to the Call Report, the FFIEC has sought to balance reporting burden against regulators’ need for reliable data to ensure banks and savings associations operate in a safe and sound manner and are able to meet the financial needs of the communities they serve.
In addition to the reporting changes proposed, the FFIEC also is focusing on four other areas:
- Accelerating the start of a statutorily required review of the continued appropriateness of the data items collected in the Call Report;
- Evaluating the feasibility and merits of creating a streamlined version of the quarterly Call Report for community institutions;
- Continuing dialogue with community institutions to identify additional opportunities to reduce reporting burden by revising or redefining Call Report data items;
- Reaching out to banks and savings associations through teleconferences and webinars to explain upcoming reporting changes and clarify technical reporting requirements.
Comments on the data reporting requirements proposed on September 8 will be accepted within 60 days of publication in the Federal Register. Individual reporting changes are proposed to take effect with the Call Reports for December 2015 or March 2016.
About the Author
Anna DeSimone is President and Founder of Bankers Advisory and Principal of CliftonLarsonAllen LLP. She can be reached at Anna@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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