[Federal Register Volume 77, Number 245 (Thursday, December 20, 2012)]
[Notices]
[Pages 75434-75437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30636]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY:  On June 15, 1984, the Office of Management and Budget (OMB) 
delegated to the Board of Governors of the Federal Reserve System 
(Board) its approval authority under the Paperwork Reduction Act (PRA), 
pursuant to 5 CFR 1320.16, to approve of and assign OMB control numbers 
to collection of information requests and requirements conducted or 
sponsored by the Board under conditions set forth in 5 CFR part 1320 
Appendix A.1. 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,

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supporting statements and approved collection of information 
instruments 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.

DATES: Comments must be submitted on or before February 19, 2013

ADDRESSES: You may submit comments, identified by FR Y-14A/Q/M, by any 
of the following methods:
     Agency Web Site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include OMB 
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 are available from the Board's Web site at 
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm 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.) between 
9:00 a.m. and 5:00 p.m. on weekdays.
    Additionally, commenters may send a copy of their comments to the 
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 or by 
fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission, 
including the proposed reporting form and instructions, supporting 
statement, and other documentation will be placed into OMB's public 
docket files, once approved. These documents will also be made 
available on the Federal Reserve Board's public Web site at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears below.
    Federal Reserve Board Clearance Officer--Cynthia Ayouch-Division of 
Research and Statistics, 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.

SUPPLEMENTARY INFORMATION: 

Request for Comment on Information Collection Proposal

    The following information collection, which is being handled under 
this delegated authority, has received initial Board approval and is 
hereby published for comment. At the end of the comment period, the 
proposed information collection, along with an analysis of comments and 
recommendations received, will be submitted to the Board for final 
approval under OMB delegated authority. Comments are invited on the 
following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Federal Reserve's functions; including 
whether the information has practical utility;
    b. The accuracy of the Federal Reserve's estimate of the burden of 
the proposed information collection, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information 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.

Proposal To Revise Under OMB Delegated Authority 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.
    Frequency: Annually, semi-annual, quarterly, and monthly.
    Reporters: Large banking organizations that meet an annual 
threshold of $50 billion or more in total consolidated assets (large 
Bank Holding Companies or large BHCs), as defined by the Capital Plan 
rule (12 CFR 225.8).\1\
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    \1\ The Capital Plan rule applies to every top-tier large BHC. 
This asset threshold is consistent with the threshold established by 
section 165 of the Dodd-Frank Act relating to enhanced supervision 
and prudential standards for certain BHCs.
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    Estimated annual reporting hours: FR Y-14A: Summary, 50,160 hours; 
Macro scenario, 1,860 hours; Counterparty credit risk (CCR), 2,292 
hours; Basel III/Dodd-Frank, 600 hours; and Regulatory capital, 600 
hours. FR Y-14 Q: Securities risk, 1,200 hours; Retail risk, 1,920 
hours; Pre-provision net revenue (PPNR), 75,000 hours; Wholesale 
corporate loans, 6,720 hours; Wholesale commercial real estate (CRE) 
loans, 6,480 hours; Trading risk, 41,280 hours; Basel III/Dodd-Frank, 
2,400 hours; Regulatory capital, 4,800 hours; and Operational risk, 
3,360 hours; and Mortgage Servicing Rights (MSR) Valuation, 864 hours; 
Supplemental, 960 hours; and Retail Fair Value Option/Held for Sale 
(Retail FVO/HFS), 1,216 hours. FR Y-14M: Retail 1st lien mortgage, 
153,000 hours; Retail home equity, 146,880 hours; and Retail credit 
card, 91,800 hours. FR Y-14 Implementation and On-Going Automation: 
Start-up for new respondents, 79,200 hours; and On-going revisions for 
existing respondents, 9,120 hours.
    Estimated average hours per response: FR Y-14A: Summary, 836 hours; 
Macro scenario, 31 hours; CCR, 382 hours; Basel III/Dodd-Frank, 20 
hours; and Regulatory capital, 20 hours. FR Y-14Q: Securities risk, 10 
hours; Retail risk, 16 hours; PPNR, 625 hours; Wholesale corporate 
loans, 60 hours; Wholesale CRE loans, 60 hours; Trading risk, 1,720 
hours; Basel III/Dodd-Frank, 20 hours; Regulatory capital, 40 hours; 
Operational risk, 28 hours, MSR Valuation, 24 hours; Supplemental, 8 
hours; and Retail FVO/HFS, 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 and On-Going Automation: Start-
up for new respondents, 7,200 hours; and On-going revisions for 
existing respondents, 480 hours.
    Number of respondents: 30.
    General description of report: The FR Y-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 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

[[Page 75436]]

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 FOIA exemption 4 (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, 
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 (1) continuous monitoring of BHCs' planning and 
management of liquidity and funding resources and (2) 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 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.\2\ 
The quarterly FR Y-14Q collects granular data on BHCs' various asset 
classes and PPNR for the reporting period, which are used to support 
supervisory stress test models and for continuous monitoring efforts. 
The monthly FR Y-14M comprises three loan- and portfolio-level 
collections, and one detailed address matching collection to supplement 
the two loan-level collections for first lien mortgages and home equity 
mortgages.
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    \2\ 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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    On October 12, 2012, the Federal Reserve published two final rules 
in the Federal Register (77 FR 62409) with stress testing requirements 
for certain bank holding companies, state member banks, and savings and 
loan holding companies. The final rules implement sections 165(i)(1) 
and (i)(2) of the Dodd-Frank Act. Section 165(i)(1) of the Dodd-Frank 
Act requires the Board to conduct an annual stress test of each covered 
company \3\ to evaluate whether the covered company has sufficient 
capital, on a total consolidated basis, to absorb losses as a result of 
adverse economic conditions (supervisory stress tests). Section 165 
(i)(2) requires the Board to issue regulations that require covered 
companies to conduct stress tests semi-annually and require financial 
companies with total consolidated assets of more than $10 billion that 
are not covered companies and for which the Federal Reserve is the 
primary federal financial regulatory agency to conduct stress tests on 
an annual basis (collectively, company-run stress tests).
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    \3\ See 12 U.S.C. 5365(a). A ``covered company'' includes any 
bank holding company with total consolidated assets of $50 billion 
or more and each nonbank financial company that the Council has 
designated for supervision by the Board.
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    Current Actions: The Federal Reserve proposes to revise the monthly 
FR Y-14M schedules and modify the frequency for certain FR Y-14A and FR 
Y-14Q schedules, effective March 31, 2013. Revisions to the FR Y-14M 
schedules include: (1) Adding data items to all three loan- and 
portfolio-level collections, and the address matching collection, (2) 
clarifying several data items currently collected, and (3) deleting 
data items that are no longer needed. A summary of the proposed 
revisions is provided below.
    Proposed revisions to the FR Y-14A (annual collection)--Effective 
November 15, 2012, sections 252.145 (Mid-cycle stress test) and 
252.147(a)(2) (Reports of stress test results) of Regulation YY (12 CFR 
252) Supervisory and Company-Run Stress Test Requirements for Covered 
Companies, requires that, in addition to the stress test required under 
section 252.144, a covered company must conduct a stress test and 
report the results by July 5th during each stress test cycle based on 
data as of March 31st of that calendar year, unless the time or the as-
of date is extended by the Board in writing.\4\ Therefore, the Federal 
Reserve proposes revising the reporting frequency from annual to semi-
annual for the Summary and Macro scenario schedules. In the mid-cycle 
summary schedules, trading and counterparty worksheets would be used if 
a market shock is included in one of the BHC stress scenarios. In the 
mid-cycle macro scenario schedule, BHCs would not be required to 
provide items related to supervisory scenarios.
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    \4\ Published October 12, 2012 (77 FR 62378)
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    Proposed revisions to the FR Y-14Q (quarterly collection)--The 
Federal Reserve proposes revising the FR Y-14Q Basel III/Dodd-Frank 
schedule and Regulatory Capital Instruments schedule to increase the 
reporting frequency from three times to four times a year effective 
beginning with the September 30, 2013 report date. The Federal Reserve 
needs these data to be provided quarterly, consistent with the data 
provided in other FR Y-14Q schedules. The previous frequency of three 
times a year reflected the fact that these schedules were implemented 
in the fourth quarter 2011 and were reported only three quarters during 
the first year of implementation.
    Proposed revisions to the FR Y-14M (monthly collection)--The 
proposed revisions to the FR Y-14M (monthly collection) consist of 
adding data items, clarifying instructions, and clarifying current data 
items on four schedules. The proposed changes to the FR Y-14M monthly 
data collections would (1) Provide additional information to support 
supervisory models used during CCAR and Dodd-Frank Act Stress Testing 
(DFAST) as well as continuous supervisory monitoring of BHCs' 
portfolios, (2) be responsive to industry comments, (3) create greater 
uniformity in the information collected across respondents, (4) create 
greater consistency in field definitions across related FR Y-14 
schedules, (5) account for developments in the market for loan 
products, (6) clarify ambiguity in existing variable definitions, and 
(7) create efficiencies in the processing of the data. In addition, the 
Federal Reserve believes that because many of the proposed new data 
items request information that large servicers of these loans currently 
collect in the regular course of business, the incremental burden of 
adding such fields would be low. Some of the proposed changes are also 
intended to facilitate increased data sharing across regulatory 
agencies that should reduce the overall burden of data submissions on 
reporters. In addition, some fields will have the added benefit of 
facilitating the review Basel II implementation at certain BHCs.

Domestic First Lien Closed-End 1-4 Family Residential Loan Schedule

    The Federal Reserve proposes adding 40 data items to the Domestic 
First Lien Closed-End 1-4 Family Residential Loan schedule to collect 
information on loans before and after modification, loan

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performance and status indicators, risk analysis and loss information, 
Basel II parameters and identifier variables (such as customer and co-
borrower ID). Also, the Federal Reserve proposes to remove three data 
items from the loan level table that can be derived from other data 
items.
    The Federal Reserve specifically requests comment on an 
institution's ability to report data related to Loss Given Default 
(LGD) on first Lien and home equity loans in cases of involuntary 
termination. The Federal Reserve specifically requests comment on what 
information, in addition to total debt at time of any involuntary 
termination, net recovery amount, and sales price of property, would be 
appropriate to collect in order to estimate LGD.

Domestic Home Equity Loan and Home Equity Line Schedule

    The Federal Reserve proposes adding 27 data items to the Domestic 
Home Equity Loan and Home Equity Line schedule and deleting one data 
item. The Federal Reserve proposes adding the data items to provide 
more information on loan performance, including loss, default, 
modification, foreclosure and recovery variables, and Basel II 
parameters, and to be consistent with the proposed revisions to the 
Domestic First Lien Closed End 1-4 Family Residential Loan schedule, as 
discussed above. The Federal Reserve proposes to delete the Paid-in-
Full Coding data item (Field 52), as this information is sufficiently 
captured in the Liquidation Status data item (Field 54).

Address Matching Loan Level Data Collection

    The Federal Reserve proposes to add one data item to the Address 
Matching Loan Level Data Collection schedule to indicate whether the 
loan is included in the FR Y-14M First Lien Closed-End or Home Equity 
Loan and Home Equity Line schedule for that month.

Domestic Credit Card Data Collection Data Dictionary

    The Federal Reserve proposes to add 65 data items to the Domestic 
Credit Card Data Collection Data Dictionary schedule. 46 data items 
would be added at the account level to collect information surrounding 
identifier variables (including corporation and borrower IDs, address, 
entity type, and trade key), purchase and payment rate variables, 
status and performance data, various fees incurred, workout program 
descriptors, and credit scores and limits. In addition, the Federal 
Reserve proposes to revise the current reporting of 11 account level 
data items from optional to mandatory, in order to create greater 
uniformity in the reporting of balance, cycle and account dates and 
amounts. At the portfolio level, 19 data items would be added to 
collect information on interest and non-interest expenses, interest and 
noninterest income, various types of fee income, and taxes.
    Copies of the draft reporting forms and instructions and additional 
details on the proposed data items are available on the Federal Reserve 
Board's public Web site at: http://www.federalreserve.gov/apps/reportforms/review.aspx.

    Board of Governors of the Federal Reserve System, December 14, 
2012.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2012-30636 Filed 12-19-12; 8:45 am]
BILLING CODE 6210-01-P