[Federal Register Volume 79, Number 226 (Monday, November 24, 2014)]
[Notices]
[Pages 69992-69994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27720]
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DEPARTMENT OF THE TREASURY
Comptroller of the Currency
Agency Information Collection Activities; 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. 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 December 24, 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
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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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On July 17, 2014 the OCC published in the Federal Register notice
of its intention to revise the reporting templates for covered
institutions with $10 to $50 billion in assets to reflect the changes
to the revised regulatory capital rule.\9\ The OCC received one comment
in response to this notice.
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\9\ 79 FR 41742.
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In the notice the OCC proposed 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 with submission of results in March
2015).\10\ In addition, the OCC proposed to clarify the accompanying
instructions to emphasize that institutions should transition to the
revised regulatory capital rule requirements in their 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
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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\10\ The OCC, the Board, and the Federal Deposit Insurance
Corporation have 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 proposed 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.
The OCC received one comment letter from a modeling service
provider on the proposed revisions to the reporting templates and
instructions. The commenter questioned the introduction of the new
regulatory capital, risk-weighted asset, and regulatory capital ratio
items in the reporting templates, asserting that covered institutions
with $10-$50 billion in assets will lack relevant data for the new
capital items in advance of when these items are required to be
reported in the Consolidated Report of Condition and Income (Call
Report). However, the additional items in the reporting templates
should not place undue burden on these institutions as they have
already been given additional time to incorporate the revised capital
framework into their company-run stress tests. These institutions were
not required to report these items in the 2013-2014 stress tests. In
addition, the reporting templates and instructions have been updated to
reference the applicable Call Report items that should be reported over
the planning horizon, including new items that were created to capture
the revised capital framework. Accordingly, the OCC is adopting the new
items as proposed.
The commenter also expressed concerns about the requirement that
covered institutions publicly disclose a summary of the results of the
stress tests. However, this requirement is contained in both the Dodd-
Frank Act and the OCC's stress test regulation.\11\ Moreover, the OCC
believes that public disclosure of the summary of the results of the
stress test using the new capital
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rules will be informative to the public and reflects an important
mechanism of both the statutory and regulatory company-run stress test
framework.
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\11\ 12 U.S.C. 5365(i)(2)(C)(iv); 12 CFR 46.8.
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In response to a few technical comments, some minor changes will be
made to the final reporting forms and instructions. These changes
include clarified reporting instructions for the disallowed deferred
tax asset and unrealized gains (losses) on AFS securities line items
and updated descriptions of the total capital and total risk-based
capital line items.
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 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 continue to be 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: November 18, 2014.
Stuart Feldstein,
Director, Legislative and Regulatory Activities Division.
[FR Doc. 2014-27720 Filed 11-21-14; 8:45 am]
BILLING CODE 4810-33-P