[Federal Register Volume 78, Number 51 (Friday, March 15, 2013)]
[Notices]
[Pages 16502-16504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-05988]


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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 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, 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 May 14, 2013.

ADDRESSES: You may submit comments, identified by FR Y-16, by any of 
the following methods:
     Agency Web site: www.federalreserve.gov. Follow the 
instructions for submitting comments at www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments.
     Email: [email protected]. Include the OMB 
control number in the subject line of the message.

[[Page 16503]]

     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/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.) 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: 
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 Proposals

    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 collections, 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 Approve Under OMB Delegated Authority the Implementation of 
the Following Information Collection

    Report title: Annual Company-Run Stress Test Projections.
    Agency form number: FR Y-16.
    OMB control number: 7100-to be assigned
    Frequency: Annual.
    Reporters: Bank holding companies (BHCs), savings and loan holding 
companies (SLHCs) \1\ 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.\2\
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    \1\ SLHCs would not be subject to Dodd-Frank annual company-run 
stress testing requirements until the next calendar year after the 
SLHCs become subject to regulatory capital requirements.
    \2\ ``Covered companies'' are defined as BHCs with at least $50 
billion in total assets and nonbank systemically important financial 
institutions, subject to annual supervisory stress tests and semi-
annual company-run stress tests; ``other financial companies'' are 
defined as BHCs with total consolidated assets over $10 billion but 
less than $50 billion, SLHCs with assets over $10 billion, and 
state-member banks with assets over $10 billion, subject to annual 
company-run stress tests.
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    Estimated annual reporting hours: 223,200 hours, one-time 
implementation; 28,768 hours, ongoing.
    Estimated average hours per response: 3,600 hours, one-time 
implementation; 464 hours, ongoing.
    Number of respondents: BHCs, 44; SLHCs, 8; and SMBs, 10.
    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) that 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 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 OTS 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).
    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 of Governors 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).
    Confidentiality: 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). As required information, 
it may be withheld under Exemption 4 only if public disclosure could 
result in substantial competitive harm to the submitting institution, 
under National Parks & Conservation Ass'n v. Morton, 498 F.2d 765 (DC 
Cir. 1974).
    Abstract: In October 2012, the Federal Reserve Board approved two 
final rules

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for capital stress testing requirements pursuant to the Dodd-Frank Act. 
The final rules implemented the Dodd-Frank Act Stress Testing (DFAST) 
requirements, one for ``covered companies'' and one for ``other 
financial companies.'' The Federal Deposit Insurance Corporation (FDIC) 
\3\ and the Office of the Comptroller of the Currency (OCC) \4\ also 
issued final rules for DFAST in October 2012 that are nearly identical 
to the requirements for ``other financial companies'' issued by the 
Federal Reserve Board.
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    \3\ October 15, 2012 (77 FR 62417)
    \4\ October 9, 2012 (77 FR 61238).
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    This proposed information collection is required under Section 
165(i)(2) of the Dodd-Frank Act and the Federal Reserve's final rule on 
annual company-run stress tests for organizations with total 
consolidated assets over $10 billion (other than covered companies), 
which was published in the Federal Register on October 12, 2012 (77 FR 
62396) (12 CFR part 252, subpart H). The annual FR Y-16 would collect 
quantitative projections of balance sheet, income, losses, and capital 
across three scenarios (baseline, adverse, and severely adverse) and 
qualitative information on methodologies used to develop internal 
projections of capital across these scenarios. Each of the banking 
agencies is developing very similar, if not identical, reporting 
templates for the institutions they supervise.
    The proposed annual FR Y-16 reporting form would collect data 
through three primary schedules: (1) 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: i.e.; aggregate losses, pre-provision net revenue, 
provision for loan and lease losses, net income, and pro forma capital 
ratios (including regulatory and any other capital ratios specified by 
the Board)), (2) Scenario Variables Schedule, and (3) Contact 
Information Schedule. The supplemental report of the results of the 
stress test, as required under the Board's rule, would include, the 
following qualitative information under the baseline, adverse, and 
severely adverse scenarios:
     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
     Any other information required by the Board.
    It is also expected that, 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.

Results Schedule (Baseline, Adverse, and Severely Adverse Scenarios and 
Summary of Results)

    For each of the three scenarios (Baseline, Adverse, and Severely 
Adverse), data would be reported for the (1) income statement and (2) 
balance sheet and capital. Therefore, two sets of worksheets for each 
scenario (baseline, adverse, and severely adverse) would be completed 
and submitted, along with the submission cover sheet and a summary of 
results worksheet.
    Income statement data would be collected on a projected quarterly 
basis showing both projections of revenues and losses. These data are 
organized in a similar (but not identical) fashion to the mandatory 
Consolidated Financial Statements for Bank Holding Companies (FR Y-9C; 
OMB No. 7100-0128) and Schedule HI--Income Statement or the 
Consolidated Report of Condition and Income (FFIEC 031/041; OMB No. 
7100-0036), Schedule RI--Income Statement. For example, respondents 
would project net charge-offs by loan type (stratified into twelve 
specific loan types); gains and losses on securities; pre-provision net 
revenue; and other key components of revenue (i.e., net interest 
income, provision for loan and lease losses, taxes, etc.).
    Balance sheet data would be collected on a quarterly basis for 
projections of certain assets, liabilities, and capital. For example, 
respondents would project loans, allowance for loan and lease losses, 
deposits, and unrealized gains (losses) on securities. These data are 
organized in a similar (but not identical) fashion to the FR Y-9C, 
Schedule HC-Balance Sheet and FFIEC 031/041, Schedule RC-Balance Sheet.
    Capital data would be collected on a projected quarterly basis and 
include components of equity and regulatory capital. Additionally, the 
capital data would capture projections of risk weighted assets and 
capital actions such as common dividends and share repurchases that 
affect a respondent's equity capital and projections and deductions 
necessary to estimate regulatory capital.
    The summary of results worksheet would be comprised of 12 key data 
points from each scenario. Therefore, all information on the summary 
worksheet would be automatically populated when the scenario 
projections are completed.

Scenario Variables Schedule

    To conduct the stress tests according to the October 12, 2012 final 
rule, an institution would be able to 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.

    Board of Governors of the Federal Reserve System, March 12, 
2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013-05988 Filed 3-14-13; 8:45 am]
BILLING CODE 6210-01-P