[Federal Register Volume 79, Number 137 (Thursday, July 17, 2014)]
[Notices]
[Pages 41742-41743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16832]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities; Proposed Revision;
Comment Request; Company-Run Annual Stress Test Reporting Template and
Documentation for Covered Institutions With Total Consolidated Assets
of $10 Billion to $50 Billion Under the Dodd-Frank Wall Street Reform
and Consumer Protection Act
AGENCY: Office of the Comptroller of the Currency, Treasury (OCC).
ACTION: Notice.
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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites the general public and other Federal
agencies to comment on this continuing information collection, as
required by the Paperwork Reduction Act of 1995. Under the Paperwork
Reduction Act, Federal agencies are required to publish notice in the
Federal Register concerning each proposed collection of information and
to allow 60 days for public comment in response to the notice. An
agency may not conduct or sponsor, and a respondent is not required to
respond to, an information collection unless it displays a currently
valid Office of Management and Budget (OMB) control number.
The OCC is soliciting comment on proposed revisions to the
regulatory reporting templates and documentation for covered
institutions with total consolidated assets of $10 billion to $50
billion.
DATES: Comments must be received by September 15, 2014.
ADDRESSES: Because paper mail in the Washington, DC area and at the OCC
is subject to delay, commenters are encouraged to submit comments by
email if possible. Comments may be sent to: Legislative and Regulatory
Activities Division, Office of the Comptroller of the Currency,
Attention: 1557-0311, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to
(571) 465-4326 or by electronic mail to [email protected].
You may personally inspect and photocopy comments at the OCC, 400 7th
Street SW., Washington, DC 20219. For security reasons, the OCC
requires that visitors make an appointment to inspect comments. You may
do so by calling (202) 649-6700. Upon arrival, visitors will be
required to present valid government-issued photo identification and to
submit to security screening in order to inspect and photocopy
comments.
All comments received, including attachments and other supporting
materials, are part of the public record and subject to public
disclosure. Do not enclose any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.
FOR FURTHER INFORMATION CONTACT: You can request additional information
from or a copy of the collection from Johnny Vilela or Mary H.
Gottlieb, Clearance Officers, (202) 649-5490, for persons who are deaf
or hard of hearing, TTY, (202) 649-5597, Legislative and Regulatory
Activities Division, Office of the Comptroller of the Currency, 400 7th
Street SW., Suite 3E-218, Mail Stop 9W-11, Washington, DC 20219. In
addition, copies of the templates referenced in this notice can be
found on the OCC's Web site under Tools and Forms (http://www.occ.gov/tools-forms/forms/bank-operations/stress-test-reporting.html).
SUPPLEMENTARY INFORMATION:
The OCC is requesting comment on a revision to the following
information collection:
Title: Company-Run Annual Stress Test Reporting Template and
Documentation for Covered Institutions with Total Consolidated Assets
of $10 Billion to $50 Billion under the Dodd-Frank Wall Street Reform
and Consumer Protection Act.
OMB Control No.: 1557-0311.
Description: Section 165(i)(2) of the Dodd-Frank Wall Street Reform
and Consumer Protection Act \1\ (Dodd-Frank Act) requires certain
financial companies, including national banks and Federal savings
associations, to conduct annual stress tests \2\ and requires the
primary financial regulatory agency \3\ of those financial companies to
issue regulations implementing the stress test requirements.\4\ A
national bank or Federal savings association is a ``covered
institution,'' and therefore subject to the stress test requirements if
its total consolidated assets exceed $10 billion. Under section
165(i)(2), a covered institution is required to submit to the Board of
Governors of the Federal Reserve System (Board) and to its primary
financial regulatory agency a report at such time, in such form, and
containing such information as the primary financial regulatory agency
may require.\5\ On October 9, 2012, the OCC published in the Federal
Register a final rule implementing the section 165(i)(2) annual stress
test requirements.\6\ On October 22, 2013 the OCC published in the
Federal Register a notice describing the reports and information
required under section 165(i)(2) for covered institutions with average
total consolidated assets between $10 to $50 billion.\7\
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\1\ Public Law 111-203, 124 Stat. 1376, July 2010.
\2\ 12 U.S.C. 5365(i)(2)(A).
\3\ 12 U.S.C. 5301(12).
\4\ 12 U.S.C. 5365(i)(2)(C).
\5\ 12 U.S.C. 5365(i)(2)(B).
\6\ 77 FR 61238, October 9, 2012.
\7\ 78 FR 62942.
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On October 11, 2013, the OCC published in the Federal Register
revised risk-based and leverage capital requirements that implement the
Basel III regulatory capital reforms and certain changes required by
the Dodd-Frank Act (revised regulatory capital rule).\8\ The revised
regulatory capital rule introduces the new common equity tier 1 capital
component and a new common equity tier 1 capital ratio, changes the
definition of regulatory capital items, and changes the calculation of
risk-weighted assets. All banking organizations must comply with the
revised regulatory capital rule beginning on January 1, 2015.
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\8\ 78 FR 62018.
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The OCC proposes to revise the reporting templates for institutions
with $10 to $50 billion in assets to reflect the changes to the revised
regulatory capital rule. Specifically, the OCC proposes to add a common
equity tier 1 capital data item to the Balance Sheet and a common
equity tier 1 risk-based capital ratio data item to the Summary
Schedule and Balance Sheet Schedules (baseline, adverse, and severely
adverse scenarios) in order to reflect the requirements of the revised
regulatory capital rule. These revisions would be effective for the
2015 stress test cycle (using September 2014 data and November 2014
scenarios with submission of results in March 2015).\9\ In addition,
the OCC proposes to clarify the accompanying instructions to emphasize
that institutions should transition to the revised regulatory capital
rule requirements in its company-run stress test projections in the
quarter in which the requirements become effective. Specifically,
institutions would be required to transition to the revised regulatory
capital rule and begin including the common equity tier 1 capital data
item and common equity tier 1 risk-based
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capital ratio data item in projected quarters two (1st quarter 2015)
through nine (4th quarter 2016) for each scenario for the 2015 stress
test cycle.
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\9\ The OCC, the Board, and the Federal Deposit Insurance
Corporation recently proposed revisions to the schedule of the
annual stress test. 79 FR 37231 (July 1, 2014). If the agencies
adopt these revisions, the OCC expects to adjust its reporting
instructions accordingly.
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The OCC also proposes several clarifications to the reporting
instructions including: Indicating that the Scenario Variables Schedule
would be collected as a reporting form in Reporting Central (instead of
as a file submitted in Adobe Acrobat PDF format) and clarifying how the
supporting qualitative information should be organized.
The OCC has worked closely with the Board and the Federal Deposit
Insurance Corporation to make the agencies' respective rules
implementing the annual stress testing requirements under the Dodd-
Frank Act consistent and comparable by requiring similar standards for
scope of application, scenarios, data collection and reporting forms.
The OCC also has worked to minimize any potential duplication of effort
related to the annual stress test requirements.
Type of Review: Revision to an existing collection.
Affected Public: Businesses or other for-profit.
Burden Estimates:
Estimated Number of Respondents: 29.
Estimated Total Annual Burden: 13,601 hours.
The burden for each $10 to $50 billion covered institution that
completes the revised results template is estimated to be 445 hours for
a total of 12,905 hours. The proposed revisions are estimated to add 5
hours of additional burden per respondent, increasing the burden from
440 hours to 445 hours. This burden includes 20 hours to input these
data and 425 hours for work related to modeling efforts. The estimated
revised burden for each $10 to $50 billion covered institution that
completes the annual DFAST Scenarios Variables Template is estimated to
be 24 hours for a total of 696 hours.
Comments submitted in response to this notice will be summarized
and included in the request for OMB approval. All comments will become
a matter of public record. Comments are invited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the OCC, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimate of the burden of the
collection of information;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of the 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.
Dated: July 14, 2014.
Stuart Feldstein,
Director, Legislative and Regulatory Activities Division.
[FR Doc. 2014-16832 Filed 7-16-14; 8:45 am]
BILLING CODE 4810-33-P