[Federal Register Volume 81, Number 8 (Wednesday, January 13, 2016)]
[Notices]
[Pages 1630-1632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-00441]
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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. 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 Clearance
Officer--Nuha Elmaghrabi--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 to revise and extend
for three years the following report:
Report title: Annual Company-Run Stress Test Report for State
Member Banks, Bank Holding Companies, and Savings and Loan Holding
Companies with Total Consolidated Assets Greater Than $10 Billion and
Less Than $50 Billion.
Agency form number: FR Y-16.
OMB control number: 7100-0356.
Frequency: Annual.
Reporters: Bank holding companies (BHCs) and savings and loan
holding companies (SLHCs) with average total consolidated assets of
greater than $10 billion but less than $50 billion, and any affiliated
or unaffiliated state member bank (SMB) with average total consolidated
assets of more than $10 billion but less than $50 billion, excluding
SMB subsidiaries of covered companies.
Estimated annual reporting hours: BHCs: 24,388 hours; SLHCs: 3,283
hours; SMBs: 4,690 hours; One-time implementation: 7,200 hours.
Estimated average hours per response: BHCs: 469 hours; SLHCs: 469
hours; SMBs: 469 hours; One-time implementation: 3,600 hours.
Number of respondents: BHCs: 52; SLHCs: 7; SMBs: 10; One-time
implementation: 2.
General description of report: This information collection is
authorized pursuant section 165(i)(2) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (Dodd-Frank Act), which specifically
authorizes the Board to issue regulations implementing the annual
stress testing requirements for its supervised institutions (12 U.S.C.
5365(i)(2)(C)). More generally, with respect to BHCs, section 5(c) of
the Bank
[[Page 1631]]
Holding Company Act (12 U.S.C. 1844(c)), authorizes the Board to
require a BHC and any subsidiary ``to keep the Board informed as to--
(i) its financial condition, [and] systems for monitoring and
controlling financial and operating risks . . . .'' Section 9(6) of the
Federal Reserve Act (12 U.S.C. 324), requires SMBs to make reports of
condition to their supervising Reserve Bank in such form and containing
such information as the Board may require. Finally, with respect to
SLHCs, under section 312 of the Dodd-Frank Act (12 U.S.C. 5412), the
Board succeeded to all powers and authorities of the Office of Thrift
Supervision, U.S. Department of the Treasury, and its Director,
including the authority to require SLHCs to ``file . . . such reports
as may be required . . . in such form and for such periods as the
[agency] may prescribe'' (12 U.S.C. 1467a(b)(2)).
The obligation to respond is mandatory. Section 165(i)(2)(A)
provides that ``financial companies that have total consolidated assets
[meeting the asset thresholds] . . . and are regulated by a primary
Federal financial regulatory agency shall conduct annual stress
tests.'' Section 165(i)(2)(B) provides that a company required to
conduct annual stress tests ``shall submit a report to the Board and to
its primary financial regulatory agency at such time, in such form, and
containing such information as the primary financial regulatory agency
shall require'' (12 U.S.C. 5365(i)(2)(B)).
As noted under section 165(i)(2)(C)(iv), companies conducting
annual stress tests under these provisions are ``require[d] . . . to
publish a summary of the results of the required stress tests.'' (12
U.S.C. 5365(i)(2)(C)(iv)). Regarding the information collected by the
Board, however, as such information will be collected as part of the
Board's supervisory process, it may be accorded confidential treatment
under Exemption 8 of the Freedom of Information Act (FOIA) (5 U.S.C.
552(b)(8)). This information also is the type of confidential
commercial and financial information that may be withheld under
Exemption 4 of FOIA (5 U.S.C. 552(b)(4)).
Abstract: The FR Y-16 applies to BHCs, SLHCs,\1\ and SMBs,
excluding SMB subsidiaries of covered companies,\2\ with average total
consolidated assets of greater than $10 billion but less than $50
billion. The annual FR Y-16 report collects quantitative projections of
revenues, losses, assets, liabilities, and capital across three
scenarios provided by the Federal Reserve (baseline, adverse, and
severely adverse) and qualitative supporting information on the
methodologies and processes used to develop these internal projections.
The FR Y-16 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 its quantitative projections.
The qualitative supporting information must include:
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\1\ The Dodd-Frank Wall Street Reform and Consumer Protection
Act (Dodd-Frank Act) annual company-run stress testing requirements
do not apply to SLHCs until 2017, and will only apply to an SLHC
that is subject to minimum regulatory capital requirements. See 12
CFR 252.13(b)(2)(iii).
\2\ ``Covered company'' is defined in 12 CFR 252(g) as a BHC
(other than a foreign banking organization (FBO)) with average total
consolidated assets of $50 billion or more; a U.S. intermediate
holding company (IHC) subject to 12 CFR 252.153, and a nonbank
financial company supervised by the Board.
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. 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 both projections of revenues and losses. These data are
organized in a similar fashion to the mandatory Consolidated Financial
Statements for Holding Companies (FR Y-9C; OMB No. 7100-0128), Schedule
HI--Consolidated Income Statement, and the Consolidated Report of
Condition and Income (FFIEC 031 and FFIEC 041; OMB No. 7100-0036) (Call
Report), Schedule RI--Income Statement. 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. These data are
organized in a similar fashion to the FR Y-9C, Schedule HC--
Consolidated Balance Sheet, and Call Report, Schedule RC--Balance
Sheet. For example, respondents would project loans, allowance for loan
and lease losses, securities, funding sources, and equity 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.
Current Actions: The revisions to the FR Y-16 report would be
effective for the 2016 stress test cycle and would: (1) Change the
report as-of date from September 30 to December 31, (2) change the
reporting submission or due date from March to July, and (3) modify the
reporting instructions to make corresponding changes to the dates,
reflect technical changes related to final implementation of BASEL III
requirements, and to clarify certain of the instructions in
coordination with the other federal regulatory agencies. None of the
changes impose additional information collection requirements.
On July 8, 2015, the Federal Reserve published a notice in the
Federal Register (80 FR 39117) requesting public comment for 60 days on
the proposal to revise and extend for three years the Annual Company-
Run Stress Test Report for $10-50 Billion Companies. The comment period
for this notice expired on September 8, 2015. The Federal Reserve did
not receive any comments, and the information collection will be
revised as proposed.
[[Page 1632]]
Board of Governors of the Federal Reserve System, January 7,
2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-00441 Filed 1-12-16; 8:45 am]
BILLING CODE 6210-01-P