Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 5506

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes the unamortized amount (book value) of purchased credit card relationships arising when the reporting bank or a banking organization purchases existing credit card receivables and also has the right to provide credit card services to those customers. Also includes any purchased credit card relationships arising in the acquisition of an entire depository institution.

Purchased credit card relationships represents the right to conduct ongoing credit card business dealings with the cardholders. In general, purchased credit card relationships are an amount paid in excess of the value of the purchased credit card receivables.

Purchased credit card relationships should be carried at a book value that does not exceed the discounted amount of estimated future net cash flows. Management of the institution should review the carrying value at least quarterly, adequately document this review, and adjust the book value as necessary. If unanticipated acceleration or deceleration of cardholder payments, account attrition, changes in fees or finance charges, or other events occurs that reduces the amount of expected future net cash flows, a write-down of the book value of the purchased credit card relationships should be made to the extent that the discounted amount of future net cash flows is less than the asset's carrying amount. The discount rate used for this book value calculation should not be less than the original discount rate inherent in the intangible asset at the time of its acquisition, based upon the estimated future net cash flows and price paid at the time of purchase.

NOTE:

Reported in Schedule RC-M for the FFIEC 031, 032, 033 and 034 reports.



BAGR Original Variable name: PCCI Formula:

PCCI=IF DT ge 19990331 THEN PCCI = .; IF DT ge 19920331 and DT lt 19991231 THEN PCCI=RCFD5506/1000;