[Federal Register Volume 80, Number 194 (Wednesday, October 7, 2015)]
[Notices]
[Pages 60680-60682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-25408]
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FEDERAL DEPOSIT INSURANCE CORPORATION
Agency Information Collection Activities: Proposed Information
Collection Revision; Comment Request (3064-0189)
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Notice and request for comment.
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SUMMARY: The Federal Deposit Insurance Corporation (FDIC), as part of
its continuing effort to reduce paperwork and respondent burden,
invites the general public and other Federal agencies to take this
opportunity to comment on a revision of a 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 proposed information
collection revisions and 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 FDIC is soliciting comment concerning its information collection
titled, ``Annual Stress Test Reporting Template and Documentation for
Covered Banks with Total Consolidated Assets of $10 Billion or More
under Dodd-Frank'' (OMB Control No. 3064-0189).
DATES: Comments must be received by December 7, 2015.
ADDRESSES: You may submit written comments by any of the following
methods:
Agency Web site: http://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC
Web site.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include ``Annual Stress Test
Reporting'' on the subject line of the message.
Mail: Gary A. Kuiper, Counsel, Legislation, Regulations
and Opinions Section, MB-3074, Attention: Comments, FDIC, 550 17th
Street NW., Washington, DC 20429.
Hand Delivery/Courier: Guard station at the rear of the
550 17th Street Building (located on F Street) on business days between
7:00 a.m. and 5:00 p.m.
Public Inspection: All comments received will be posted without
change to http://www.fdic.gov/regulations/laws/federal/ including any
personal information provided.
Additionally, you may send a copy of your comments: By mail to the
U.S. OMB, 725 17th Street NW., #10235, Washington, DC 20503 or by
facsimile to 202.395.6974, Attention: Federal Banking Agency Desk
Officer.
FOR FURTHER INFORMATION CONTACT: You can request additional information
from Gary Kuiper, 202.898.3877, Legal Division, FDIC, 550 17th Street
NW., MB-3074, Washington, DC 20429. In addition, copies of the
templates referenced in this notice can be found on the FDIC's Web site
(http://www.fdic.gov/regulations/laws/federal/).
SUPPLEMENTARY INFORMATION: The FDIC is requesting comment on the
following revision of an information collection:
Annual Stress Test Reporting Template and Documentation for Covered
Banks With Total Consolidated Assets of $10 Billion to $50 Billion
Under Dodd-Frank
Section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act \1\ (Dodd-Frank Act) requires certain financial
companies, including state nonmember banks and state 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 state
nonmember bank or state savings association is a ``covered bank'' and
therefore subject to the stress
[[Page 60681]]
test requirements if its total consolidated assets exceed $10 billion.
Under section 165(i)(2), a covered bank 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 15, 2012, the FDIC
published in the Federal Register a final rule implementing the section
165(i)(2) annual stress test requirement.\6\ The final rule, codified
as Part 325 Subpart C of the FDIC's rules and regulations,\7\ requires
covered banks to meet specific reporting requirements under section
165(i)(2). In 2013, the FDIC first implemented the reporting templates
for covered banks with total consolidated assets of $10 billion to $50
billion and provided instructions for completing the reports.\8\ This
notice describes revisions by the FDIC to those reporting templates,
the information required, and related instructions. These information
collections will be given confidential treatment to the extent allowed
by law (5 U.S.C. 552(b)(4)).
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\1\ Public Law 111-203 Sec. 165(i)(2), 124 Stat. 1376, 1430
(July 21, 2010) (codified at 12 U.S.C. Sec. 5365(i)(2).
\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 62417 (October 15, 2012).
\7\ 12 CFR 325.201, et seq.
\8\ See 78 FR 16263 (March 14, 2013) and 78 FR 63470 (October
24, 2013).
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Consistent with past practice, the FDIC intends to use the data
collected through these revised templates to assess the reasonableness
of the stress test results of covered banks and to provide forward-
looking information to the FDIC regarding a covered bank's capital
adequacy. The FDIC also may use the results of the stress tests to
determine whether additional analytical techniques and exercises could
be appropriate to identify, measure, and monitor risks at the covered
bank. The stress test results are expected to support ongoing
improvement in a covered bank's stress testing practices with respect
to its internal assessments of capital adequacy and overall capital
planning.
The FDIC recognizes that many covered banks with total consolidated
assets of $10 billion to $50 billion are part of a holding company that
is also required to submit relevant Dodd Frank Annual Stress Test
(DFAST) reports to the Board. The FDIC, Office of Comptroller of the
Currency, and Board have coordinated the preparation of stress testing
templates in order to make the templates as similar as possible and
thereby minimize the burden on affected institutions. These agencies
have coordinated in a similar manner regarding these proposed
modifications to the stress testing templates. Therefore, the revisions
by the FDIC to its reporting requirements will remain consistent with
the modifications that the Board proposes to make to the FR Y-16.
Description of Information Collection
The FDIC DFAST 10-50 reporting form collects data through two
primary schedules: (1) The Results Schedule (which includes the
quantitative results of the stress tests under the baseline, adverse,
and severely adverse scenarios for each quarter of the planning
horizon) and (2) the Scenario Variables Schedule. In addition,
respondents are required to submit a summary of the qualitative
information supporting their quantitative projections. The qualitative
supporting information must include:
A description of the types of risks included in the stress
test;
a summary description of the methodologies used in the
stress test;
an explanation of the most significant causes for the
changes in regulatory capital ratios, and
the use of the stress test results.
Results Schedule
For each of the three supervisory scenarios (baseline, adverse, and
severely adverse), data are reported on two supporting schedules: (1)
The Income Statement Schedule and (2) the Balance Sheet Schedule.
Therefore, two supporting schedules for each scenario (baseline,
adverse, and severely adverse) are completed. In addition, the Results
Schedule includes a Summary Schedule, which summarizes key results from
the Income Statement and Balance Sheet Schedules.
Income statement data are collected on a projected quarterly basis
showing projections of revenues and losses. For example, respondents
project net charge-offs by loan type (stratified by twelve specific
loan types), gains and losses on securities, pre-provision net revenue,
and other key components of net income (i.e., provision for loan and
lease losses, taxes, etc.).
Balance sheet data are collected on a quarterly basis for
projections of certain assets, liabilities, and capital. Capital data
are also collected on a projected quarterly basis and include
components of regulatory capital, including the projections of risk
weighted assets and capital actions such as common dividends and share
repurchases.
Scenario Variables Schedule
To conduct the stress tests, an institution may choose to project
additional economic and financial variables beyond the mandatory
supervisory scenarios provided to estimate losses or revenues for some
or all of its portfolios. In such cases, the institution would be
required to complete the Scenario Variables Schedule for each scenario
where the institution chooses to use additional variables. The Scenario
Variables Schedule collects information on the additional scenario
variables used over the planning horizon for each supervisory scenario.
The proposed revisions to the FDIC DFAST reporting templates for
covered banks with assets of $10 billion to $50 billion are described
below.
Proposed Revisions to Reporting Templates for Banks With $10 Billion to
$50 Billion in Assets
On November 21, 2014, the FDIC approved a final rule \9\ that
revised Part 325 Subpart C by modifying the 2016 stress test cycle and
each annual cycle thereafter to begin on January 1 of the calendar year
rather than October 1, as is provided for by the current rule.
Additionally, the final rule modified the ``as of'' dates for financial
data (that covered banks will use to perform their stress tests) as
well as the reporting dates and public disclosure dates of the annual
stress tests for both $10 billion to $50 billion covered banks and over
$50 billion covered banks.
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\9\ 79 FR 69385 (November 21, 2014)
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Specifically, beginning January 1, 2016, the stress testing cycle
that, under the previous rule, would have begun on October 1 of a given
calendar year, will begin January 1 of a given calendar year. Beginning
with the 2016 stress-testing cycle, the final rule requires covered
banks to conduct company-run stress tests using financial data as of
December 31 of the preceding calendar year, which represents a three-
month shift from September 30 in the previous rule. The FDIC will
provide the economic scenarios to be used by covered banks in their
company-run stress tests no later than February 15, rather than
November 15, as is provided under the previous rule.
All $10 billion to $50 billion covered banks will be required to
conduct and submit the results of their company-run stress tests to the
FDIC by July 31 and publish those results during a period beginning on
October 15 and ending October 31.
Due to the timing shift of the Dodd-Frank Act stress test, the FDIC
is proposing several changes to conform the data collection to the
final rule.
The FDIC proposes to revise the FDIC DFAST 10-50 Summary Schedule
by
[[Page 60682]]
modifying the financial as of date from September 30th to December
31st. This revision is effective for the 2016 stress test cycle (with
reporting in July 2016).
In addition, the FDIC proposes to clarify the FDIC DFAST 10-50
reporting form instructions to change the submission date from March
31st to July 31st, to change references to the financial ``as of'' date
from September 30th to December 31st, and to update the line items
references to the new Call Report Instructions.
Burden Estimates
The FDIC estimates the burden of this collection of information as
follows:
Current
Number of Respondents: 22.
Annual Burden per Respondent: 469 hours.
Total Annual Burden: 10,318 hours.
Proposed
Estimated Number of Respondents: 22.
Estimated Annual Burden per Respondent: 469 hours.
Estimated Total Annual Burden: 10,318 hours.
The FDIC does not expect that the changes to the DFAST 10-50
Summary Schedule and reporting form instructions will result in an
increase in burden. The burden for each $10 billion to $50 billion
covered bank that completes the FDIC DFAST 10-50 Results Template and
FDIC DFAST 10-50 Scenario Variables Template is estimated to be 469
hours. The burden to complete the FDIC DFAST 10-50 Results Template is
estimated to be 440 hours, including 20 hours to input these data and
420 hours for work related to modeling efforts. The burden to complete
the FDIC DFAST 10-50 Scenario Variables Template is estimated to be 29
hours. The total burden for all 22 respondents to complete both
templates is estimated to be 10,318 hours.
Comments are invited on all aspects of the proposed changes to the
information collection, particularly:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the FDIC, including whether the
information has practical utility;
(b) The accuracy of the FDIC'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;
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information; and
(f) The ability of FDIC-supervised banks and savings associations
with assets between $10 billion and $50 billion to provide the
requested information to the FDIC by July 31, 2016.
Dated at Washington, DC, this 30th day of September 2015.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015-25408 Filed 10-6-15; 8:45 am]
BILLING CODE 6714-01-P