[Federal Register Volume 78, Number 182 (Thursday, September 19, 2013)]
[Notices]
[Pages 57634-57637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-22709]
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FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: On June 15, 1984, the Office of Management and Budget (OMB)
delegated to the Board of Governors of the Federal Reserve System
(Board) its
[[Page 57635]]
approval authority under the Paperwork Reduction Act (PRA), pursuant to
5 CFR 1320.16, to approve of and assign OMB control numbers to
collection of information requests and requirements conducted or
sponsored by the Board under conditions set forth in 5 CFR part 1320
Appendix A.1. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. Copies of the Paperwork Reduction Act
Submission, supporting statements and approved collection of
information instruments are placed into OMB's public docket files. The
Federal Reserve may not conduct or sponsor, and the respondent is not
required to respond to, an information collection that has been
extended, revised, or implemented on or after October 1, 1995, unless
it displays a currently valid OMB control number.
DATES: Comments must be submitted on or before November 18, 2013.
ADDRESSES: You may submit comments, identified by FR 2052a and b, by
any of the following methods:
Agency Web site: http://www.federalreserve.gov. Follow the
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include OMB
number in the subject line of the message.
FAX: (202) 452-3819 or (202) 452-3102.
Mail: Robert deV. Frierson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue NW.,
Washington, DC 20551.
All public comments are available from the Board's Web site at
http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted,
unless modified for technical reasons. Accordingly, your comments will
not be edited to remove any identifying or contact information. Public
comments may also be viewed electronically or in paper form in Room MP-
500 of the Board's Martin Building (20th and C Streets NW.) between
9:00 a.m. and 5:00 p.m. on weekdays.
Additionally, commenters may send a copy of their comments to the
OMB Desk Officer, Shagufta Ahmed, Office of Information and Regulatory
Affairs, Office of Management and Budget, New Executive Office
Building, Room 10235 725 17th Street NW., Washington, DC 20503 or by
fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission,
including the proposed reporting form and instructions, supporting
statement, and other documentation will be placed into OMB's public
docket files, once approved. These documents will also be made
available on the Federal Reserve Board's public Web site at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears below.
Federal Reserve Board Clearance Officer, Cynthia Ayouch, Office of
the Chief Data Officer, Board of Governors of the Federal Reserve
System, Washington, DC 20551 (202) 452-3829. Telecommunications Device
for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors
of the Federal Reserve System, Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
Request for Comment on Information Collection Proposal
The following information collection, which is being handled under
this delegated authority, has received initial Board approval and is
hereby published for comment. At the end of the comment period, the
proposed information collection, along with an analysis of comments and
recommendations received, will be submitted to the Board for final
approval under OMB delegated authority. Comments are invited on the
following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Federal Reserve's functions; including
whether the information has practical utility;
b. The accuracy of the Federal Reserve's estimate of the burden of
the proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or start up costs and costs of operation,
maintenance, and purchase of services to provide information.
Proposal to approve under OMB delegated authority the
implementation of the following information collection:
Report titles: Complex Institution Liquidity Monitoring Report and
Liquidity Monitoring Report.
Agency form numbers: FR 2052a and FR 2052b.
OMB control number: 7100- to be assigned.
Frequency: FR 2052a: Daily, twice a month, and on occasion. FR
2052b: monthly, quarterly, and on occasion.
Reporters: FR 2052a: U.S. Bank Holding Companies (BHCs) that the
Financial Stability Board designated as Global Systematically Important
Banks (G-SIBs) and Foreign banking organizations (FBOs) with U.S.
broker/dealer assets > $100 billion. FR 2052b: U.S. BHCs (excluding G-
SIBs) with total assets > $50 billion, U.S. BHCs with total assets $10
billion-$50 billion, and FBOs with total U.S. assets > $50 billion and
US broker/dealer assets < $100 billion.
Estimated annual reporting hours: FR 2052a: 315,680 hours. FR
2052b: 9,075 hours.
Estimated average hours per response: FR 2052a: U.S. BHCs that the
Financial Stability Board designated as G-SIBs, 150 hours; FBOs with
U.S. broker/dealer assets > $100 billion complete, 150 hours; FBOs with
U.S. broker/dealer assets > $100 billion abbreviated, 37.5 hours; Ad-
Hoc, 38 hours. FR 2052b: U.S. BHCs (excluding G-SIBs) with total assets
> $50 billion, 25 hours; U.S. BHCs with total assets $10 billion-$50
billion, 25 hours; FBOs with total U.S. assets > $50 billion and U.S.
broker/dealer assets < $100 billion, 25 hours.
Number of respondents: FR 2052a: U.S. BHCs that the Financial
Stability Board designated as G-SIBs, 8; FBOs with U.S. broker/dealer
assets > $100 billion complete, 8; FBOs with U.S. broker/dealer assets
> $100 billion abbreviated, 8; Ad-Hoc, 16. FR 2052b: U.S. BHCs
(excluding G-SIBs) with total assets > $50 billion, 17; U.S. BHCs with
total assets $10 billion-$50 billion, 38; FBOs with total U.S. assets >
$50 billion and U.S. broker/dealer assets < $100 billion, 7.
General description of report: This information collection is
authorized pursuant to section 5 of the Bank Holding Company Act (12
U.S.C. 1844), section 8 of the International Banking Act (12 U.S.C.
3106) and section 165 of the Dodd Frank Act (12 U.S.C. 5365) and are
mandatory. Section 5(c) of the Bank Holding Company Act authorizes the
Board to require BHCs to submit reports to the Board regarding their
financial condition. Section 8(a) of the International Banking Act
subjects FBOs to the provisions of the Bank Holding Company Act.
Section 165 of the Dodd Frank Act requires the Board to establish
prudential standards for certain BHCs and FBOs; these standards include
liquidity requirements. The individual financial institution
information provided by each
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respondent would be accorded confidential treatment under exemption 8
of the Freedom of Information Act (5 U.S.C. 552(b)(8)). In addition,
the institution information provided by each respondent would not be
otherwise available to the public and is entitled to confidential
treatment under the authority of exemption 4 of the Freedom of
Information Act (5 U.S.C. 552(b)(4)), which protects from disclosure
trade secrets and commercial or financial information.
Abstract: The Federal Reserve proposes to implement the FR 2052
reports, collecting quantitative information on selected assets,
liabilities, funding activities, and contingent liabilities on a
consolidated basis and by material subsidiary entity. U.S. BHCs
designated by the Financial Stability Board as G-SIBs would report the
complete FR 2052a daily. FBOs with U.S. broker/dealer assets greater
than $100 billion would report the complete FR 2052a on occasion and an
abbreviated FR 2052a twice a month. U.S. BHCs, excluding G-SIBs, with
total assets greater than $50 billion, U.S. BHCs with assets between
$10 and $50 billion, and FBOs with total U.S. assets greater than $50
billion and with broker/dealer assets less than $100 billion would
report on the FR 2052b monthly, quarterly, and on occasion,
respectively.
The FR 2052 reports would be used to monitor an individual
organization's overall liquidity profile for institutions supervised by
the Federal Reserve. These data would also provide detailed information
on the liquidity risks within different business lines (e.g., financing
of securities positions and prime brokerage activities). In particular,
these data would serve as part of the Federal Reserve's supervisory
surveillance program in its liquidity risk management area and would
provide timely information on firm-specific liquidity risks during
periods of stress. Analysis of both systemic and idiosyncratic
liquidity risk issues would then be used to inform the Federal
Reserve's supervisory processes, including the preparation of
analytical reports that detail funding vulnerabilities.
FR 2052a
The FR 2052a report would include sections covering broad funding
classifications by product, outstanding balance and purpose, segmented
by maturity date. Generally, each section can be classified into one of
the following categories:
Section 1: Secured Financing: Institutions would report
obligations and lending activities backed by the pledge of assets or
other collateral. This section would include asset-backed commercial
paper (single-seller and multi-seller arrangements), term asset-backed
securities, collateralized commercial paper, and other secured
financing.
Section 2: Official Government Sources Drawn: Institutions
would report their borrowings from the Federal Reserve and other
Central Banks, Federal Home Loan Banks (FHLBs) as well as any amounts
drawn from official government sources.
Section 3: Repurchase & Securities Lending Transactions:
Institutions would report repurchase and securities lending
transactions such as those conducted under a Global Master Repo
Agreement, Master Securities Loan Agreement or a Master Securities
Forward Transaction Agreement. Repurchase & Securities Lending
Transaction would be grouped according to specific categories pre-
identified by the Federal Reserve.
Section 4: Unencumbered Assets: Institutions would report
the amount of assets that are free and clear of any encumbrances such
as creditor claims or liens. Unencumbered assets would be grouped
according to specific categories pre-identified by the Federal Reserve.
Section 5: Expected Cash Inflows: Institutions would
report cash and collateral inflows, for example those related to
derivatives, and not covered in any other section.
Section 6: Cash Inflows from External Counterparties:
Institutions would report inflows related to Fed funds and Eurodollars
sold and other loan cash inflows.
Section 7: Reverse Repurchase & Securities Borrowing
Transactions: Institutions would report reverse repurchase and
securities borrowing transactions such as those conducted under a
Global Master Repo Agreement, Master Securities Loan Agreement or a
Master Securities Forward Transaction Agreement. Reverse Repurchase &
Securities Borrowing Transactions would be grouped according to
specific categories pre-identified by the Federal Reserve.
Section 8: Unsecured Financing: Institutions would report
the amount of obligations not backed by the pledge of specific
collateral. Categories would include commercial paper, wholesale
certificates of deposit and bank notes, promissory notes, Fed funds and
Eurodollars purchased, long-term debt (structured and non-structured),
draws on committed lines from external entities and other unsecured
financing.
Section 9: Central Bank, FHLB Sources, and Nostro
Balances: Institutions would report cash balances maintained at the
Federal Reserve and at other central banks. Firms' cash balances held
at other financial institutions (Nostro balances) would be reported.
Section 10: Deposit Funding: Institutions would report the
amounts of retail and wholesale deposits and retail CDs based on Basel
III classifications as of the December 2010 release. These
classifications differentiate between accounts that are stable versus
less stable and operating versus non-operating. Institutions would
report wholesale CDs in Section 8.
Section 11: Expected Cash Outflows: Institutions would
report cash and collateral outflows, for example those related to
derivatives, and not covered in any other section.
Section 12: Operating Cash Flows: Institutions would
report operating cash flows related to prime brokerage (e.g., free
credits, external/internal funding used to cover customer shorts,
margin loans, lockup cash flows) to help supervisors disentangle firm-
specific and business-specific trends. Expected cash outflows/inflows
related to derivatives activities would also be reported.
Section 13: Unsecured Internal Cash Flows: Institutions
would report unsecured lending between internal entities.
Section 14: Secured Internal Cash Flows: Institutions
would report the amounts of repurchase, reverse-repurchase, and
securities borrowed and securities lending transactions between legal
entities. Secured Internal Cash Flows would be grouped according to
specific categories pre-identified by the Federal Reserve.
Section 15: Contingency Line Items: Institutions would
report all contingent items that could impact the funding and liquidity
at the reporting institution. Examples include undrawn commitments
provided to external counterparties. Firms would also report the total
cumulative market value of additional collateral their counterparties
will require the firm to post as a result of various levels of credit
rating downgrades.
Section 16: Funding Pricing: Institutions would report the
market rates paid to third parties to execute secured and unsecured
transactions.
The FR 2052a report daily data submissions would be provided on a
best efforts basis. For institutions providing FR 2052a daily
information, the month-end submission would be required to be
certified.
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For continuous monitoring purposes, FBOs with U.S. broker/dealer
assets greater than $100 billion would be required to provide a
complete FR 2052a report on an occasional basis, and such data would be
expected to be certified. These FBOs would also submit an abbreviated
FR 2052a report twice a month as reflected in Appendix C of the FR
2052a instructions. This abbreviated data would not be required to be
certified.
The Federal Reserve specifically requests comment on the
certification requirements with respect to the timeframe needed for
updating systems and internal controls.
The Federal Reserve proposes to conduct up to 10 ad-hoc collections
of daily liquidity data from a total of 16 respondents. The ad-hoc
collections would consist of approximately 65 data items not reported
on the FR 2052a. Results from the ad-hoc collections would be used to
develop future enhancements to the FR 2052a report.
FR 2052b
The FR 2052b would include sections covering broad funding
classifications by product, outstanding balance, and purpose segmented
by maturity date. Generally, each section may be classified into one
the following categories:
Section 1: Liquid Assets: Institutions would report cash
balances maintained at the Federal Reserve and at other central banks.
Firms' cash balances held at other financial institutions would be
reported as well as physical currency and coin positions.
Section 2: Reverse Repos: Institutions would report
obligations repos by maturity and security collateral type.
Section 3: Investment Securities: Reporting would be
segregated into assets by risk weight and type that are unencumbered
and those assets pledged to garner secured funding by the counterparty
type (FHLB, Central Bank, etc.) to which the collateral is pledged.
Both marketable and lendable values would be included.
Section 4: Loans and Leases: Reporting would be segregated
into loan types that are unencumbered and those assets pledged to
garner secured funding by the counterparty type to which the collateral
is pledged.
Section 5: Secured Funding Sources Outstanding:
Institutions would report their borrowing outstanding by maturity from
the Federal Reserve, the FHLB, and other secured financing facilities.
Section 6: Repurchase Transaction: Institutions would
report repurchase transactions by securities collateral type and
maturity.
Section 7: Unsecured Financing: Institutions would report
the amount of obligations not backed by the pledge of specific
collateral. Categories include commercial paper, wholesale certificates
of deposits & bank notes, Fed funds and Eurodollars purchased, long-
term debt (structured and non-structured), draws on committed lines
from external entities and other unsecured financing.
Section 8: Estimated Cored Funding Gap: The Net Loan
Growth/Attrition and Net Retail Deposit Growth/Attrition line items
would be included to capture the forecasted (best estimate, non-
stressed) change in loan and retail deposits over the stated horizon.
Section 9: Contractual Loan Inflows and Committed Inflow:
Contractual inflows of all maturing performing loans would be listed in
the corresponding maturity columns.
Section 10: Deposit Funding: Institutions would report the
amounts of retail and wholesale deposits and retail CDs. Institutions
would differentiate retail/SME deposit accounts that are stable versus
less stable.
Section 11: ABCP Exposure: Institutions would report the
outstanding asset backed commercial paper issued to fund the assets of
a single or several unrelated sellers.
Section 12: Undrawn Commitments and Contingent Liquidity
Needs: Institutions would report all contingent items that could impact
the funding and liquidity at the reporting institution. Examples
include undrawn commitments provided to external counterparties.
Section 13-18: Parent Company Only Tab: Institutions would
report items in the Parent Company Only section which relate only to
the Parent Company. Included are fields for liquid assets, forecasts of
cash inflows (such as dividends from subsidiaries and operations) and
outflows (such as operating expenses, dividends, subsidiary support and
debt service), unsecured financing (such as commercial paper, debt and
draws on committed lines), and committed liquidity and credit
facilities provided to third-party banks.
Section 20-21: Contingency Pricing Tab: Institutions would
report the market rates paid to third parties to execute unsecured and
secured transactions, by BHC, across the maturity spectrum. If market
funding quotes are unavailable, the institution's internal funds
pricing curve could be used as a supplement.
The FR 2052b reports submitted on monthly, quarterly, and on an
occasional basis would be certified.
The Federal Reserve specifically requests comment on the
certification requirements with respect to the timeframe needed for
updating systems and internal controls.
Board of Governors of the Federal Reserve System, September 13,
2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013-22709 Filed 9-18-13; 8:45 am]
BILLING CODE 6210-01-P