[Federal Register Volume 79, Number 241 (Tuesday, December 16, 2014)]
[Notices]
[Pages 74721-74722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-29296]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: Notice is hereby given of the final approval of a proposed
information collection by the Board of Governors of the Federal Reserve
System (Board) under OMB delegated authority, as per 5 CFR 1320.16 (OMB
Regulations on Controlling Paperwork Burdens on the Public). 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 instrument(s) 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.
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Acting Clearance
Officer--John Schmidt--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.
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.
Final approval under OMB delegated authority of the extension for
three years, with revision of the following report:
Report title: Capital Assessments and Stress Testing information
collection.
Agency form number: FR Y-14A/Q/M.
OMB Control number: 7100-0341.
Effective Dates: September 30, 2014, December 31, 2014, and March
31, 2015.
Frequency: Annually, semi-annually, quarterly and monthly.
Reporters: Any top-tier U.S. bank holding company (BHC) that has
$50 billion or more in total consolidated assets, as determined based
on: (i) The average of the BHC's total consolidated assets in the four
most recent quarters as reported quarterly on the BHC's Consolidated
Financial Statements for Bank Holding Companies (FR Y-9C) (OMB No.
7100-0128); or (ii) the average of the BHC's total consolidated assets
in the most recent consecutive quarters as reported quarterly on the
BHC's FR Y-9Cs, if the BHC has not filed an FR Y-9C for each of the
most recent four quarters. Reporting is required as of the first day of
the quarter immediately following the quarter in which it meets this
asset threshold, unless otherwise directed by the Federal Reserve.
Estimated annual reporting hours: FR Y-14A: Summary, 67,848 hours;
Macro scenario, 2,046 hours; Operational Risk, 456 hours; Regulatory
capital transitions, 759; and Regulatory capital instruments, 660
hours. FR Y-14Q: Securities risk, 1,584 hours; Retail risk, 2,112
hours; Pre-provision net revenue (PPNR), 93,852 hours; Wholesale
corporate loans, 8,556 hours; Wholesale commercial real estate (CRE)
loans, 8,280 hours; Trading risk, 69,336 hours; Regulatory capital
transitions, 3,036 hours; Regulatory capital instruments, 5,280 hours;
Operational risk, 6,600 hours; Mortgage Servicing Rights (MSR)
Valuation, 1,152 hours; Supplemental, 528 hours; and Retail Fair Value
Option/Held for Sale (Retail FVO/HFS), 1,408 hours; Counterparty credit
risk (CCR), 16,632 hours; and Balances, 2,112 hours; FR Y-14M: Retail
1st lien mortgage, 171,360 hours; Retail home equity, 165,240 hours;
and Retail credit card, 110,160 hours. FR Y-14 Implementation, 21,600
hours; and On-Going Automation for existing respondents, 14,400 hours.
Estimated average hours per response: FR Y-14A: Summary, 1,028
hours; Macro scenario, 31 hours; Operational Risk, 12 hours; Regulatory
capital transitions, 23; and Regulatory capital instruments, 20 hours.
FR Y-14Q: Securities risk, 12 hours; Retail risk, 16 hours; PPNR, 711
hours; Wholesale corporate loans, 69 hours; Wholesale CRE loans, 69
hours; Trading risk, 1,926 hours; Regulatory capital transitions, 23
hours; Regulatory capital instruments, 40 hours; Operational risk, 34
hours; MSR Valuation, 24 hours; Supplemental, 4 hours; and Retail FVO/
HFS, 16 hours; CCR, 441 hours; and Balances, 16 hours; FR Y-14M: Retail
1st lien mortgage, 510 hours; Retail home equity, 510 hours; and Retail
credit card, 510 hours. FR Y-14 Implementation, 7,200 hours; and On-
Going Automation for existing respondents, 480 hours.
Number of respondents: 33.
General description of report: The FRY-14 series of reports are
authorized by section 165 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010 (Dodd-Frank Act), which requires the
Federal Reserve to ensure that certain bank holding companies (BHCs)
and nonbank financial companies supervised by the Federal Reserve are
subject to enhanced risk-based and leverage standards in order to
mitigate risks to the financial stability of the United States (12
U.S.C. 5365). Additionally, Section 5 of the BHC Act authorizes the
Board to issue regulations and conduct information collections with
regard to the supervision of BHCs (12 U.S.C. 1844).
As these data are collected as part of the supervisory process,
they are subject to confidential treatment under exemption 8 of the
Freedom of Information Act (FOIA) (5 U.S.C. 552(b)(8)). In addition,
commercial and financial information contained in these information
collections may be exempt from disclosure under exemption 4 of FOIA (5
U.S.C. 552(b)(4)). Such exemptions would be made on a case-by-case
basis.
Abstract: The data collected through the FR Y-14A/Q/M schedules
provide the Federal Reserve with the additional information and
perspective needed to help ensure that large BHCs have strong,
[[Page 74722]]
firm[hyphen]wide risk measurement and management processes supporting
their internal assessments of capital adequacy and that their capital
resources are sufficient given their business focus, activities, and
resulting risk exposures. The annual Comprehensive Capital Analysis and
Review (CCAR) exercise is also complemented by other Federal Reserve
supervisory efforts aimed at enhancing the continued viability of large
BHCs, including continuous monitoring of BHCs' planning and management
of liquidity and funding resources and regular assessments of credit,
market and operational risks, and associated risk management practices.
Information gathered in this data collection is also used in the
supervision and regulation of these financial institutions. In order to
fully evaluate the data submissions, the Federal Reserve may conduct
follow up discussions with or request responses to follow up questions
from respondents, as needed.
The semi-annual FR Y-14A collects large BHCs' quantitative
projections of balance sheet, income, losses, and capital across a
range of macroeconomic scenarios and qualitative information on
methodologies used to develop internal projections of capital across
scenarios.\1\ The quarterly FR Y-14Q collects granular data on BHCs'
various asset classes and PPNR for the reporting period. The monthly FR
Y-14M comprises three loan- and portfolio-level collections, and one
detailed address matching collection to supplement two of the portfolio
and loan-level collections. Both the FR Y-14Q and the FR Y-14M are used
to support supervisory stress test models and for continuous monitoring
efforts.
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\1\ BHCs that must re-submit their capital plan generally also
must provide a revised FR Y-14A in connection with their
resubmission.
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Current Actions: On October 1, 2014, the Federal Reserve published
a final Federal Register notice (79 FR 59264) implementing several
changes to the FR-14A/Q/M and extending the public comment period by 30
days regarding the agreement-level/asset category counterparty
information. The comment period expired on October 31, 2014. The
Federal Reserve received one comment. The comment is summarized and
addressed below.
Summary of Comment
The Federal Reserve received one comment letter addressing the
agreement-level/asset category counterparty information. The commenter
requested clarification on several items, which will be provided
through updated instructions as appropriate. More substantively, the
commenter stated that the information collection as originally proposed
on July 15, 2014 (79 FR 41276) could be provided, but noted that the
information collected by sub-schedules L.5 and L.6 would require a
significant amount of resources. Specifically, the commenter requested
that implementation of these sub-schedules be delayed to March 31,
2015.
As stated in the October 1, 2014, Federal Register publication,
more detailed counterparty data would allow the Federal Reserve to
assess the reasonableness of the BHC's model-based estimates used as
key inputs to the supervisory stress test as well as ensure the
comparability of results across BHCs. Therefore, the Federal Reserve
will keep sub-schedules L.5 and L.6 as finalized October 1, 2014 for
the September 30, 2014 and December 31, 2014 reporting periods, with
two minor exceptions noted below. Furthermore, the Federal Reserve will
implement FR Y-14Q Schedule L as originally proposed on July 15, 2014
effective March 31, 2015.
FR Y-14Q
Counterparty Schedule
As noted above, effective March 31, 2015, Schedule L (Counterparty)
of the FR Y-14Q will be revised to collect information as originally
proposed on July 15, 2014. Specifically, the schedule will require that
tables L.5.2 and L.6.2 be reported at a legal-entity, netting-agreement
level. Furthermore, table L.5.2 will include the asset sub-categories
as originally proposed for L.5.2. Tables L.5.1 and L.6.1 will remain as
finalized on October 1, 2014, and continue to require reporting at a
legal-entity, netting-agreement level. However, the commenter
specifically also noted that the items ``CDS Hedge Stressed CR01'' and
``CSA Contractual Features'' of table L.6.1 would be difficult to
provide for the September 30, 2014, reporting period. The Federal
Reserve appreciates the commenter's concerns regarding these items and
makes these items optional through the December 31, 2014, reporting
period, after which they will be mandatory.
Board of Governors of the Federal Reserve System, December 10,
2014.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2014-29296 Filed 12-15-14; 8:45 am]
BILLING CODE 6210-01-P