[Federal Register Volume 81, Number 242 (Friday, December 16, 2016)]
[Notices]
[Pages 91171-91173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29967]
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FEDERAL RESERVE SYSTEM
[Docket No. R-1535; RIN 7100 AE-49]
Banking Organization Systemic Risk Report (FR Y-15)
AGENCY: Board of Governors of the Federal Reserve System (Board).
ACTION: Extension of filing deadline; request for comment.
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SUMMARY: The Board is extending the deadline to complete Schedule G of
the Banking Organization Systemic Risk Report (FR Y-15) for certain
firms.
DATES: Compliance with the filing requirements for Schedule G of the FR
Y-15 is immediately extended until December 31, 2017, for certain firms
and is immediately extended until June 30, 2018, for certain other
firms. Comments must be received on or before February 14, 2017.
ADDRESSES: When submitting comments, please consider submitting your
comments by email or fax because paper mail in the Washington, DC area
and at the Board may be subject to delay. You may submit comments,
identified by Docket No. R-1535; RIN 7100 AE-49, by any of the
following methods:
Agency Web site: http://www.federalreserve.gov. Follow the
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include the
docket number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Robert deV. Frierson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue NW.,
Washington, DC 20551.
All public comments will be made available on the Board's Web site
at http://www.federalreserve.gov/apps/foia/proposedregs.aspx as
submitted, unless modified for technical reasons. Accordingly, your
comments will not be edited to remove any identifying or contact
information. Public comments may also be viewed electronically or in
paper form in Room MP-500 of the Board's Martin Building (20th and C
Streets NW., Washington, DC 20551) between 9:00 a.m. and 5:00 p.m. on
weekdays.
FOR FURTHER INFORMATION CONTACT: Anna Lee Hewko, Associate Director,
(202) 530-6260, Constance M. Horsley,
[[Page 91172]]
Assistant Director, (202) 452-5239, Elizabeth MacDonald, Manager, (202)
475-6316, or Sean Healey, Supervisory Financial Analyst, (202) 912-
4611, Division of Banking Supervision and Regulation; or Benjamin
McDonough, Special Counsel, (202) 452-2036, Mark Buresh, Senior
Attorney, (202) 452-5270, or Mary Watkins, Attorney, (202) 452-3722,
Legal Division. Board of Governors of the Federal Reserve System, 20th
and C Streets NW., Washington, DC 20551. For the hearing impaired only,
Telecommunications Device for the Deaf (TDD) users may contact (202)
263-4869.
SUPPLEMENTARY INFORMATION:
I. Background
The Banking Organization Systemic Risk Report (FR Y-15) reporting
form collects systemic risk data from U.S. bank holding companies,
covered savings and loan holding companies,\1\ and intermediate holding
companies with total consolidated assets of $50 billion or more. The
Federal Reserve primarily uses the FR Y-15 data to monitor, on an
ongoing basis, the systemic risk profile of the institutions that are
subject to enhanced prudential standards under section 165 of the Dodd-
Frank Act. The information reported on the FR Y-15 also is used in the
calculation of a bank holding company's method 1 and method 2 scores
under the Board's risk-based capital surcharge for global systemically
important bank holding companies (GSIB surcharge rule).\2\
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\1\ Covered savings and loan holding companies are those which
are not substantially engaged in insurance or commercial activities.
For more information, see the definition of ``covered savings and
loan holding company'' provided in 12 CFR 217.2.
\2\ 12 CFR part 217, subpart H.
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In connection with issuance of the GSIB surcharge rule, the Board
revised the FR Y-15 to include Schedule G, which contains data used in
the calculation of the short-term wholesale funding score that is a
component of the method 2 score calculation.\3\ The revised FR Y-15
required firms to begin providing Schedule G with the FR Y-15 as of
December 31, 2016.\4\
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\3\ See, 80 FR 77344 (December 14, 2015); 12 CFR 217.405-406.
\4\ 80 FR 77344, 77345.
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The Board's complex institution liquidity monitoring report (FR
2052a) collects data on an institution's overall liquidity profile.
While the FR 2052a collects a broader range of data on a more frequent
and granular basis than the FR Y-15, the information collected on the
FR 2052a includes the information necessary to complete Schedule G of
the FR Y-15. When the Board finalized the FR 2052a reporting form, it
provided a phase-in schedule to allow firms sufficient time to
implement the systems necessary to complete the FR 2052a.\5\ Under the
transition periods set forth in FR 2052a, firms with total consolidated
assets of less than $700 billion and less than $10 trillion in assets
under custody are not required to submit the FR 2052a until at least
February 2017, a full year after the current effective date of the FR
Y-15.
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\5\ 80 FR 71795 (November 17, 2015).
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II. Extension of Deadline
This extension of the filing deadline to complete Schedule G of the
FR Y-15 (extension) delays the initial filing date of Schedule G for
all firms, except for those that have $700 billion or more in total
consolidated assets or $10 trillion or more in assets under custody.
This delay will allow the FR 2052a phase-in schedule to be completed
before a firm is required to complete Schedule G of the FR Y-15.
Under the extension, firms that are required to file the FR Y-15
that have $700 billion or more in total consolidated assets or $10
trillion or more in assets under custody do not have an extended filing
date and must complete Schedule G for the FR Y-15 filed as of December
31, 2016. However, firms that are required to file the FR Y-15 and that
have less than $10 trillion in assets under custody and less than $700
billion in total consolidated assets, but have $250 billion or more in
total consolidate assets or $10 billion or more in on balance sheet
foreign exposure are not required to begin completing Schedule G until
the report with the December 31, 2017, as of date. Firms that are
required to file the FR Y-15 and that have less than: $10 trillion in
assets under custody; $250 billion in total consolidated assets; and
$10 billion in on-balance-sheet foreign exposure are not required to
begin completing Schedule G until the report with the June 30, 2018, as
of date. The table below describes the interaction between initial
filing of the FR 2052a and the initial filing of Schedule G of the FR
Y-15:
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FR 2052a FR Y-15
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First First as-of
U.S. firms with total consolidated Filing frequency First as-of submission date for
assets: date date Schedule G
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>=$700 billion or with >=$10 Daily..................... 12/14/2015 12/16/2015 12/31/2016
trillion in assets under custody.
<$700 billion and with <$10 trillion Monthly................... 01/31/2017 02/15/2017 12/31/2017
in assets under custody, but total
consolidated assets >=$250 billion
or foreign exposure >=$10 billion.
>=$50 billion, but total Monthly................... 07/31/2017 08/15/2017 06/30/2018
consolidated assets <$250 billion
and foreign exposure <$10 billion.
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The extension revises the initial filing dates of Schedule G of the
FR Y-15 to be consistent with the phase-in schedule for the FR Y 2052a.
Without this change, firms would be required to implement the systems
necessary to complete both the Schedule G of the FR Y-15 and much of
the FR 2052a for the FR Y-15 report as of December 31, 2016. This would
create significant immediate expense for firms and would be contrary to
the phase-in schedule for completion of the FR 2052a.
III. Request for Comments
The Board seeks comment on all aspects of the extension.
IV. Date of Action; Solicitation of Comments
The interim final rule is being issued without prior notice and
opportunity to comment and with an immediate effective date. Pursuant
to the Administrative Procedure Act (APA), general notice and
opportunity for public comment are not required prior to final agency
action, if the agency, for good cause, finds that ``notice and public
procedure thereon are impracticable, unnecessary, or contrary to the
public interest.'' \6\ Immediate adoption of the extension would give
[[Page 91173]]
effect to the intended phase-in schedule for the FR 2052a by allowing
certain firms additional time to complete Schedule G of the FR Y-15.
Immediate adoption of this change also would provide clarity to firms
required to file the FR Y-15 and FR 2052a regarding the interaction of
the forms, and relieve burden on these firms by allowing additional
time to develop the systems necessary to complete the FR Y-15 and FR
2052a. Without the revised schedule of Schedule G of the FR Y-15 in the
extension, many holding companies would expend significant resources to
develop liquidity reporting systems significantly in advance of when
these systems would otherwise become necessary. Further, since only
certain summary statistics reported on Schedule G are released to the
public, allowing certain firms additional time to complete Schedule G
will not have a significant impact on the amount of information
available to the public.\7\
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\6\ 5 U.S.C. 553(b)(B). The APA also generally requires that
notice of a final action be published in the Federal Register no
less than 30 days before its effective date, unless the action
grants or recognizes an exception or relieves a restriction, or as
otherwise provided by the agency for good cause. 5 U.S.C. 553(d)(3).
\7\ Items one through four of Schedule G receive confidential
treatment until the liquidity coverage ratio disclosure standard has
been implemented. Information for which confidential treatment is
provided may subsequently be released in accordance with the terms
of 12 CFR 261.16 or as otherwise provided by law.
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The Board finds that, under these circumstances, prior notice and
comment through the issuance of a proposal are impracticable and that
the public interest is best served by making the extension effective as
quickly as possible.
VI. Regulatory Analysis
A. Regulatory Flexibility Act Analysis
The requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.) (RFA) are not applicable to this interim extension.\8\
Nonetheless, the Board believes that this extention would not have a
significant economic impact on a substantial number of small entities.
The Board requests comment on its conclusion that the extension should
not have a significant economic impact on a substantial number of small
entities.
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\8\ The requirements of the RFA are not applicable to rules
adopted under the Administrative Procedure Act's ``good cause''
exception, see 5 U.S.C. 601(2) (defining ``rule'' and notice
requirements under the APA).
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The RFA generally requires an agency to assess the impact a rule is
expected to have on small entities.\9\ The RFA requires an agency
either to provide a regulatory flexibility analysis or to certify that
the extension will not have a significant economic impact on a
substantial number of small entities. Based on this analysis and for
the reasons stated below, the Board believes that the extension will
not have a significant economic impact on a substantial number of small
entities.
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\9\ Under standards the U.S. Small Business Administration has
established, an entity is considered ``small'' if it has $175
million or less in assets for banks and other depository
institutions. U.S. Small Business Administration, Table of Small
Business Size Standards Matched to North American Industry
Classification System Codes, available at http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf.
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Under regulations issued by the U.S. Small Business Administration,
a small entity includes a depository institution, bank holding company,
or savings and loan holding company with total assets of $550 million
or less (a small banking organization).\10\ As of June 30, 2016, there
were approximately 3,203 top-tier small bank holding companies and 162
small savings and loan holding companies.
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\10\ See 13 CFR 121.201. Effective July 14, 2014, the Small
Business Administration revised the size standards for banking
organizations to $550 million in assets from $500 million in assets.
79 FR 33647 (June 12, 2014).
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The Board believes that the extension will reduce regulatory burden
by providing additional time for certain firms to complete Schedule G
of the FR Y-15. The firms required to file the FR Y-15 are bank holding
companies, savings and loan holding companies, and intermediate holding
companies with $50 billion or more in total consolidated assets, as
well as any U.S.-based organization designated as a global systemically
important bank holding company. Therefore, neither Schedule G of the FR
Y-15 nor this extension apply to small entities.
The Board is aware of no other Federal rules that duplicate,
overlap, or conflict with this extension. The Board does not believe
that there are significant alternatives to the extension that would
reduce the economic impact on small banking organizations supervised by
the Board.
B. Solicitation of Comments on Use of Plain Language
Section 722 of the Gramm-Leach-Bliley Act requires the agencies to
use plain language in all proposed and final rules published after
January 1, 2000. The agencies invite comment on how to make this
extension easier to understand. For example:
Have the agencies organized the material to suit your
needs? If not, how could it be more clearly stated?
Are the requirements in the rule clearly stated? If not,
how could they be more clearly stated?
Does the notice contain technical language or jargon that
is not clear? If so, what language requires clarification?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the notice easier to understand? If
so, what changes would make the notice easier to understand?
Would more, but shorter, sections be better? If so, which
sections should be changed?
What else could be done to make the notice easier to
understand?
C. Paperwork Reduction Act
In accordance with section 3512 of the Paperwork Reduction Act of
1995 (PRA) (44 U.S.C. 3501-3521), the Board 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 Board reviewed the extension under
the authority delegated to the Board by OMB. The extension contains no
requirements subject to the PRA.
D. Administrative Procedure Act
As noticed, the Administrative Procedure Act allows an agency to
act immediately to adopt a rule without public notice and comment if
the agency has ``good cause.'' \11\ In this case, the Board has good
cause to issue the extension and to have the extension be effective
immediately.\12\ The extension will provide certain firms additional
time to complete Schedule G of the FR Y-15. The delay provides clarity
to the industry regarding the Board's expectations for implementation
of systems for monitoring and reporting liquidity positions and to
ensure that these firms have sufficient time to develop these systems
and the related risk management processes.
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\11\ 12 U.S.C. 553(b).
\12\ 12 U.S.C. 553(d).
By order of the Board of Governors of the Federal Reserve
System, December 9, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-29967 Filed 12-14-16; 11:15 am]
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