[Federal Register Volume 79, Number 225 (Friday, November 21, 2014)]
[Rules and Regulations]
[Pages 69365-69369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27610]



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  Federal Register / Vol. 79, No. 225 / Friday, November 21, 2014 / 
Rules and Regulations  

[[Page 69365]]



FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 325

RIN 3064-AE18


Annual Stress Test

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Final rule.

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SUMMARY: The Federal Deposit Insurance Corporation (the Corporation or 
FDIC) is issuing a final rule that implements proposed revisions to 
regulations regarding the annual stress testing requirements for state 
nonmember banks and state savings associations with total consolidated 
assets of more than $10 billion (covered banks). The regulations, which 
implement section 165(i)(2) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (the Dodd-Frank Act), require covered banks to 
conduct annual stress tests, report the results of such stress tests to 
the Corporation and the Board of Governors of the Federal Reserve 
System (the Board), and publicly disclose a summary of the results of 
the required stress tests. The final rule revises the 2016 stress test 
cycle and for years 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 modifies 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.

DATES: This final rule is effective January 1, 2015.

FOR FURTHER INFORMATION CONTACT: Ryan Sheller, Section Chief, (202) 
412-4861, Large Bank Supervision, Division of Risk Management and 
Supervision; Mark G. Flanigan, Supervisory Counsel, (202) 898-7426, 
Grace Pyun, Senior Attorney, (202) 898-3609, or Benjamin Klein, Senior 
Attorney, (202) 898-7027, Legal Division, Federal Deposit Insurance 
Corporation, 550 17th Street NW., Washington, DC, 20429.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 165(i) of the Dodd-Frank Act requires two types of stress 
tests. Section 165(i)(1) requires the Board to conduct annual stress 
tests of holding companies with $50 billion or more in total 
consolidated assets (``supervisory stress tests''). Section 165(i)(2) 
of the Dodd-Frank Act requires the federal banking agencies to issue 
regulations requiring financial companies with more than $10 billion in 
total consolidated assets to conduct annual stress tests themselves 
(company-run stress tests), and it requires that the implementing 
regulations issued by each of the federal banking agencies be 
consistent and comparable with each other. In October 2012, the FDIC, 
the Office of the Comptroller of the Currency (the OCC), and the Board 
(collectively the Agencies) issued final rules \1\ implementing the 
company-run stress tests requirements. The FDIC's final rule was 
codified as part 325, subpart C of the FDIC rules and regulations (the 
Annual Stress Test rule). The Annual Stress Test rule requires FDIC-
insured state nonmember banks and FDIC-insured state-chartered savings 
associations with total consolidated assets of more than $10 billion to 
conduct annual stress tests.
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    \1\ 77 FR 62417 (Oct. 15, 2012) (FDIC); 77 FR 61238 (October 9, 
2012) (OCC); 77 FR 62396 (October 12, 2012) (Board).
---------------------------------------------------------------------------

    Part 325, subpart C identifies two categories of covered banks. The 
first category includes state nonmember banks and state savings 
associations that have between $10 billion and $50 billion in total 
consolidated assets, and the second category includes state nonmember 
banks and state savings associations with over $50 billion in total 
consolidated assets.\2\ For both categories of covered banks, the 
company-run stress test must assess the potential impact of different 
scenarios \3\ on the capital of the covered bank and certain related 
items over a forward-looking, nine-quarter planning horizon, taking 
into account all relevant exposures and activities.\4\
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    \2\ 12 CFR 325.202(d).
    \3\ On an annual basis, prior to the start of the stress testing 
period and no later than November 15, the FDIC provides to covered 
banks a minimum of three economic scenarios (baseline, adverse, and 
severely adverse) and additional scenarios as the FDIC determines 
appropriate for the covered banks to use in performing their stress 
tests.
    \4\ In addition, certain covered banks with significant trading 
activities (as determined by the FDIC) may be required to include a 
trading and counterparty component for the scenarios used in their 
stress tests.
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    Part 325, subpart C also provides timeframes for the testing, 
reporting, and publication of the company-run stress tests, which vary 
depending on the category into which the covered bank falls. Covered 
banks use financial data as of September 30 (the ``as of'' date) of the 
preceding calendar year to make projections that estimate their 
financial position under the different stress scenarios, and to report 
and publish the results of their annual stress test in the following 
calendar year. Covered banks with $10 billion to $50 billion in total 
assets must report the results of their stress tests by March 31 and 
publish a summary of their results between June 15 and June 30.\5\ Over 
$50 billion covered banks are required to report the results of their 
annual stress test by January 5 of each calendar year and publish a 
summary of their results between March 15 and March 31.\6\ These 
testing, reporting, and publication milestones are consistent across 
the federal banking agencies' respective annual stress testing rules.
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    \5\ 12 CFR 325.204(a); 325.206(a); 325.207(a).
    \6\ 12 CFR 325.204(a); 325.206(a); 325.207(a).
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    A covered bank that is a consolidated subsidiary of a bank holding 
company or savings and loan holding company subject to company-run 
stress test requirements administered by the Board is generally 
permitted to publish abbreviated disclosures of its annual stress test 
results with the parent holding company's summary and on the same 
timeline as the parent holding company.\7\ The FDIC requires that 
specific information be included in the disclosure to reflect the 
changes in the covered bank's capital ratios and the reasons for those 
changes.
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    \7\ 12 CFR 325.207(b).
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    Since the publication and codification of the Annual Stress Test 
rule, the Agencies have received feedback from the industry regarding 
the resource

[[Page 69366]]

constraints that covered banks face at the beginning and end of the 
calendar year arising from competing regulatory and reporting 
deadlines. Furthermore, the Agencies are aware that conducting stress 
testing during the last quarter of a calendar year may also make it 
difficult for covered banks to make timely modifications to strategic 
and operational plans for the following year that address any issues 
identified in the company-run stress test results.
    For these reasons, on July 1, 2014, the FDIC, in coordination with 
the Board and the OCC, issued a notice of proposed rulemaking (the NPR) 
in the Federal Register that proposed to modify the dates of the stress 
test cycle and the corresponding reporting and publication deadlines. 
The NPR proposed to shift the testing, reporting, and disclosure dates 
for the 2016 company-run stress test cycle and each annual cycle 
thereafter.\8\ The Corporation is now issuing a final rule modifying 
the dates of the stress test cycle and the corresponding reporting and 
publication deadlines as proposed in the NPR, as described further 
below. The final rule will be consistent with final rules issued by the 
OCC and Board making the same date modifications to the stress testing 
cycle, agency reporting, and public disclosure.
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    \8\ 79 FR 37235 (July 1, 2014) (FDIC); 79 FR 37231 (OCC); 79 FR 
37420 (Board).
---------------------------------------------------------------------------

II. Comments Received

    The NPR solicited public comment on all aspects of the proposed 
rule. The NPR's comment period ended on September 2, 2014, and the FDIC 
received five comment letters. Comments were submitted by, or on behalf 
of, individuals, banks and bank holding companies, and banking and 
financial services industry trade groups and associations. The 
commenters generally supported the proposed revisions in the NPR, but 
also requested additional revisions to the proposed timeline shifts.
    The commenters supported the proposed timing shift for the start of 
the stress test cycles to address the challenges to banking 
organizations and personnel presented at the end of the calendar year. 
Some commenters encouraged the FDIC to accelerate implementation of the 
proposed changes so that the adjusted timeframes apply beginning with 
the 2015 stress test cycle, rather than with the 2016 stress test 
cycle. The final rule adopts the proposed revisions to the start of the 
stress test cycle and related dates, but does not accelerate the 
implementation of the modified dates. The transition period is 
necessary to give the FDIC and banking organizations sufficient time to 
revise reporting schedules and change internal systems. As such, the 
new timeline will become applicable to the stress testing cycle that 
begins on January 1, 2016.
    Commenters also requested that the FDIC provide stress test 
scenarios by no later than January 15 of a given calendar year given 
the compressed timeframe for implementation of stress testing 
processes. In developing the scenarios, the FDIC seeks to provide 
covered banks with sufficient time to conduct the annual stress tests, 
while also ensuring that the scenarios reflect timely data on economic 
and financial conditions. Under the revised timeline, the FDIC expects 
to provide stress test scenarios as soon as possible and before the 
deadlines set by the final rule. Accordingly, the FDIC has adopted this 
aspect of the proposal without significant change.
    Commenters additionally requested that the length of the planning 
horizon be reduced from nine quarters to eight quarters. The NPR would 
have shifted the stress testing timeline by one quarter, but would have 
maintained the nine-quarter planning horizon. The commenters argued 
that the ninth quarter does not provide additional meaningful 
information given the incremental uncertainty in projections as they 
move further into the future, and that eight quarters would still 
represent two full years of capital planning. The FDIC believes that 
the ninth quarter period provides meaningful information to the 
Agencies in assessing the projections of covered banks. Accordingly, 
the final rule maintains the nine-quarter planning horizon.
    Commenters also requested that the Agencies delay incorporation of 
advanced approaches risk-based capital rules into the annual stress 
testing process indefinitely. The NPR proposed to revise the testing 
and reporting dates and did not address the application of the risk-
based capital rules. As such, the FDIC believes that technical aspects 
of projecting risk-based capital requirements under the advanced 
approaches should be dealt with on a case-by-case basis and through the 
supervisory process.

III. The Final Rule

    After reviewing the comments, the FDIC is issuing this final rule 
to implement the changes proposed in the NPR to part 325, subpart C of 
the FDIC Rules and Regulations.

A. Company-Run Stress Test Timelines

    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. For those certain covered banks with 
significant amounts of trading activities that are required to include 
trading and counterparty components in their adverse and severely 
adverse scenarios, the FDIC will select an ``as of'' date between 
January 1 and March 1 of a calendar year for the data used in this 
component. The FDIC will communicate this date to the covered banks no 
later than March 1.
    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. Over $50 billion covered banks will 
be required to conduct and submit the results of their company-run 
stress tests to the FDIC by April 5 and publish those results during a 
period beginning on June 15 and ending on July 15. The April 5 
reporting deadline for over $50 billion covered banks is a minor change 
from the April 7 deadline proposed in the NPR.
    Furthermore, a covered bank that is a consolidated subsidiary of a 
bank holding company or savings and loan holding company that is 
required to conduct an annual company-run stress test under applicable 
regulations of the Board may continue to elect to conduct its stress 
test and report to the FDIC on the same timeline as its parent bank 
holding company or savings and loan holding company as it had under the 
previous rule. Under the final rule, however, an over $50 billion 
covered bank that is a consolidated subsidiary of a holding company 
that is subject to supervisory stress tests conducted by the Board 
under 12 CFR part 252 may publish the required summary of its company-
run stress test no earlier than the date that the Board publishes the 
supervisory stress test results for the parent holding company, but no 
later

[[Page 69367]]

than July 15. In addition, if the Board publishes the supervisory 
stress test results of the covered bank's parent holding company prior 
to June 15, then the covered bank may satisfy its publication 
requirement either through actual publication by the covered bank or 
through publication by the parent holding company under Sec.  325.207.

B. Applicability

    The final rule amends the applicability provisions in Sec.  325.203 
of the Annual Stress Test rule to reflect the changed timeline. 
Previously, a state nonmember bank or state savings association that 
became a covered bank had to conduct its first annual stress test 
beginning in the next calendar year after the date the state nonmember 
bank or state savings association became a covered bank. Under the new 
2016 stress testing timeline, if this applicability provision were left 
unchanged, a state nonmember bank or state savings association that 
became a covered bank as of September 30 of a given year would have 
been required to conduct its first stress test on January 1, three 
months after becoming a covered bank. The final rule provides a minimum 
of nine months between the date on which a state nonmember bank or 
state savings association becomes a covered bank and the start date of 
the stress testing cycle in which the covered bank must conduct its 
first stress test. To preserve the nine-month minimum, the final rule 
establishes a March 31 cutoff date. A state nonmember bank or state 
savings association that becomes a covered bank on or before March 31 
of a given year would be required to conduct its first stress test in 
the next calendar year. For example, a state nonmember bank or state 
savings association that becomes a covered bank on or before March 31, 
2015 would be required to conduct its first stress test in the stress 
testing cycle beginning January 1, 2016. A state nonmember bank or 
state savings association that becomes a covered bank after March 31 of 
a given year would be required to conduct its first stress test in the 
second calendar year after the date the state nonmember bank or state 
savings association becomes a covered bank. For example, a state 
nonmember bank or state savings association that becomes a covered bank 
on June 30, 2015 would be required to conduct its first stress test in 
the stress testing cycle beginning January 1, 2017.

  Table 1--Modified Annual Stress Test Timeline for $10 Billion to $50
                          Billion Covered Banks
------------------------------------------------------------------------
 Action required  ``As of''       Current rule      Final rule  December
   date for financial data        September 30               31
------------------------------------------------------------------------
Distribution of Scenarios     By November 15......  By February 15.
 for Annual Stress Tests by
 FDIC.
Reporting of Annual Stress    By March 31.........  By July 31.
 Test Results.
Public Disclosure of Annual   Between June 15 and   Between October 15
 Stress Test Results.          June 30.              and October 31.
------------------------------------------------------------------------


   Table 2--Modified Annual Stress Test Timeline for Over $50 Billion
                              Covered Banks
------------------------------------------------------------------------
 Action required  ``As of''       Current rule      Final rule  December
   date for financial data        September 30               31
------------------------------------------------------------------------
Distribution of Scenarios     By November 15......  By February 15.
 for Annual Stress Tests by
 FDIC.
Reporting of Annual Stress    By January 5........  By April 5.
 Test Results.
Public Disclosure of Annual   Between March 15 and  Between June 15 and
 Stress Test Results.          March 31.             July 15, except no
                                                     earlier than Board
                                                     publication of the
                                                     supervisory stress
                                                     test results of the
                                                     covered bank's
                                                     holding company.\9\
------------------------------------------------------------------------

IV. Administrative Law Matters

A. Paperwork Reduction Act Analysis

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501-3521) (``PRA''), the Corporation may not 
conduct or sponsor, and the 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 has two 
stress testing information collections: The Annual Stress Test and 
Stress Testing Reporting Templates, 3064-0187 and -0189.
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    \9\ If the Board releases supervisory stress test results prior 
to June 15, then the covered bank may release its annual stress test 
results prior to June 15, but no earlier than the release of the 
supervisory stress test results and no later than July 15.
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    The Corporation is revising 12 CFR 325.202, 325.203, 325.204, 
325.206, and 325.207 by modifying timelines for the testing, reporting, 
and disclosure of the annual stress tests for covered banks. The 
revisions shift by three months the ``as of'' date of the financial 
data used to conduct company-run stress tests for covered banks from 
September 30 to December 31. The final rule also shifts the reporting 
and disclosure deadlines for both $10 billion to $50 billion covered 
banks and over $50 billion covered banks and provide for a new 
transition period for those covered banks that become covered under the 
rule. Additionally, under the final rule, an over $50 billion covered 
bank that is a consolidated subsidiary of a bank holding company or 
savings and loan holding company subject to supervisory stress tests 
conducted by the Board may publish the required summary of its annual 
stress test results no earlier than the date that the Board publishes 
the supervisory stress test results of the covered bank's parent 
holding company, but no later than July 15. The revision of timelines 
in part 325, subpart C does not revise the FDIC's stress testing 
information collections of information.

B. Regulatory Flexibility Act Analysis

    The Regulatory Flexibility Act, 5 U.S.C. 601, et seq. (RFA), 
requires that each federal agency either certify that a proposed rule 
would not, if adopted in final form, have a significant economic impact 
on a substantial number of small entities or prepare an initial 
regulatory flexibility analysis of the rule and publish the analysis 
for comment.\10\ The final rule applies only to state nonmember banks 
and state savings associations with more than $10 billion in total 
consolidated assets. Under

[[Page 69368]]

regulations issued by the Small Business Administration (SBA), a bank 
or other depository institution is considered ``small'' if it has $550 
million or less in assets.\11\ As of June 30, 2014, there are 
approximately 3,268 small state nonmember banks and state savings 
associations. Since the final rule applies only to twenty-six state 
nonmember banks and state savings associations with more than $10 
billion in total consolidated assets, the Corporation does not expect 
that the final rule will directly affect a substantial number of small 
entities. It is hereby certified that this rule will not have a 
significant economic impact on a substantial number of small entities 
and therefore, a regulatory flexibility analysis under the RFA is not 
required.
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    \10\ See 5 U.S.C. 603, 604, and 605.
    \11\ 13 CFR 121.201.
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C. Plain Language

    Section 722 of the Gramm-Leach-Bliley Act (Pub. L. 106-102, 113 
Stat. 1338, 1471, 12 U.S.C. 4809) requires federal banking agencies to 
use plain language in all proposed and final rules published after 
January 1, 2000. The Corporation sought to present the proposed rule in 
a simple and straightforward manner and invited comment on how to make 
the proposed rule easier to understand. The FDIC received no comments 
on the use of plain language.

D. Small Business Regulatory Enforcement Fairness Act

    The Office of Management and Budget has determined that the final 
rule is not a ``major rule'' within the meaning of the relevant 
sections of the Small Business Regulatory Enforcement Fairness Act of 
1996 \12\ (``SBREFA'').
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    \12\ 5 U.S.C. 801, et seq.
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List of Subjects in 12 CFR Part 325

    Administrative practice and procedure, Banks, Banking, Disclosures, 
Federal Deposit Insurance Corporation, Reporting and recordkeeping 
requirements, State savings associations, Stress tests.

Authority and Issuance

    For reasons stated in the preamble, the Board of Directors of the 
Federal Deposit Insurance Corporation amends subpart C to part 325 of 
title 12 of the Code of Federal Regulations as follows:

PART 325--CAPITAL MAINTENANCE

0
1. Revise the authority citation for part 325 to read as follows:

    Authority:  12 U.S.C. 5365(i)(2); 12 U.S.C. 5412(b)(2)(C); 12 
U.S.C. 1818, 12 U.S.C. 1819(a)(Tenth), 12 U.S.C. 1831o, and 12 
U.S.C. 1831p-1.


0
2. In Sec.  325.202, add paragraph (m) to read as follows:


Sec.  325.202  Definitions.

* * * * *
    (m) Stress test cycle means:
    (1) Until October 1, 2015, the period beginning October 1 of a 
calendar year and ending on September 30 of the following calendar 
year; and
    (2) Beginning October 1, 2015, the period beginning January 1 of a 
calendar year and ending on December 31 of that year.

0
3. In Sec.  325.203, revise paragraph (b) to read as follows:


Sec.  325.203  Applicability.

* * * * *
    (b)(1) A state nonmember bank or state savings association that 
becomes a covered bank after October 15, 2012 and on or before March 
31, 2014 shall conduct its first annual stress test under this subpart 
beginning in the next calendar year after the date the state nonmember 
bank or state savings association becomes a covered bank.
    (2) A state nonmember bank or state savings association that 
becomes a covered bank after March 31, 2014 and on or before March 31, 
2015 shall conduct its first annual stress test under this subpart in 
the January 1, 2016 stress testing cycle.
    (3) A state nonmember bank or state savings association that 
becomes a covered bank on or before March 31 in years following 2015 
shall conduct its first annual stress test under this subpart in the 
stress testing cycle in the next calendar year after the date the state 
nonmember bank or state savings association becomes a covered bank. A 
state nonmember bank or state savings association that becomes a 
covered bank after March 31 in years following 2015 shall conduct its 
first annual stress test under this subpart in the second calendar year 
after the date the state nonmember bank or state savings association 
becomes a covered bank.
* * * * *

0
4. Revise Sec.  325.204 to read as follows:


Sec.  325.204  Annual stress tests required.

    (a) General requirements--(1) $10 billion to $50 billion covered 
bank. Prior to January 1, 2016, a $10 billion to $50 billion covered 
bank must conduct a stress test on or before March 31 of each calendar 
year based on financial data as of September 30 of the preceding 
calendar year. Beginning January 1, 2016, a $10 billion to $50 billion 
covered bank must conduct a stress test on or before July 31 of each 
calendar year based on financial data as of December 31 of the 
preceding calendar year.
    (2) Over $50 billion covered bank. Prior to January 1, 2016, an 
over $50 billion covered bank must conduct a stress test on or before 
January 5 of each calendar year based on financial data as of September 
30 of the preceding calendar year. Beginning January 1, 2016, an over 
$50 billion covered bank must conduct a stress test on or before April 
5 of each calendar year based on financial data as of December 31 of 
the preceding calendar year.
    (b) Scenarios provided by the Corporation. In conducting the stress 
test under this subpart, each covered bank must use the scenarios 
provided the Corporation. The scenarios provided by the Corporation 
will reflect a minimum of three sets of economic and financial 
conditions, including baseline, adverse, and severely adverse 
scenarios. The Corporation will provide a description of the scenarios 
required under this section to each covered bank no later than November 
15 (for stress test cycle beginning October 1, 2014) or February 15 
(for stress test cycle beginning January 1, 2016, and all stress test 
cycles thereafter) of that calendar year.
    (c) Significant trading activities. The Corporation may require a 
covered bank with significant trading activities, as determined by the 
Corporation, to include trading and counterparty components in its 
adverse and severely adverse scenarios. The trading and counterparty 
position data used in these components will be as of a date between 
October 1 and December 1 (for the stress test cycle beginning October 
1, 2014) or between January 1 and March 1 (for the stress test cycle 
beginning January 1, 2016, and all stress test cycles thereafter) of 
that calendar year selected by the Corporation and communicated to the 
covered bank no later than December 1 (for the stress test cycle 
beginning October 1, 2014) or March 1 (for the stress test cycle 
beginning January 1, 2016, and all stress test cycles thereafter) of 
the calendar year.

0
5. Revise Sec.  325.206(a) to read as follows:


Sec.  325.206  Required reports of stress test results to the FDIC and 
the Board of Governors of the Federal Reserve System.

    (a) Report required for annual stress test results--(1) $10 billion 
to $50 billion covered bank. Prior to January 1, 2016, a $10 billion to 
$50 billion covered bank must report to the FDIC and to the Board on or 
before March 31 the results of the stress test in the

[[Page 69369]]

manner and form specified by the FDIC. Beginning January 1, 2016, a $10 
billion to $50 billion covered bank must report to the FDIC and to the 
Board on or before July 31 the results of the stress test in the manner 
and form specified by the FDIC.
    (2) Over $50 billion covered bank. Prior to January 1, 2016, an 
over $50 billion covered bank must report to the FDIC and to the Board, 
on or before January 5, the results of the stress test in the manner 
and form specified by the FDIC. Beginning January 1, 2016, an over $50 
billion covered bank must report to the FDIC and to the Board, on or 
before April 5, the results of the stress test in the manner and form 
specified by the FDIC.
* * * * *

0
6. Revise Sec.  325. 207(a) to read as follows:


Sec.  325.207  Publication of stress test results.

    (a) Publication date--(1) $10 billion to $50 billion covered bank. 
(i) Prior to January 1, 2016, a $10 billion to $50 billion covered bank 
must publish a summary of the results of its annual stress test in the 
period starting June 15 and ending June 30 (for the stress test cycle 
beginning October 1, 2014).
    (ii) Beginning January 1, 2016, a $10 billion to $50 billion 
covered bank must publish a summary of the results of its annual stress 
test in the period starting October 15 and ending October 31 (for the 
stress test cycle beginning January 1, 2016 and for all stress test 
cycles thereafter).
    (2) Over $50 billion covered bank. (i) Prior to January 1, 2016, an 
over $50 billion covered bank must publish a summary of the results of 
its annual stress tests in the period starting March 15 and ending 
March 31 (for the stress test cycle beginning October 1, 2014).
    (ii) Beginning January 1, 2016, an over $50 billion covered bank 
must publish a summary of the results of its annual stress tests in the 
period starting June 15 and ending July 15 (for the stress test cycle 
beginning January 1 2016, and for all stress test cycles thereafter) 
provided:
    (A) Unless the Corporation determines otherwise, if the over $50 
billion covered bank is a consolidated subsidiary of a bank holding 
company or savings and loan holding company subject to supervisory 
stress tests conducted by the Board of Governors of the Federal Reserve 
System under 12 CFR part 252, then, within the June 15 to July 15 
period, such covered bank may not publish the required summary of its 
annual stress test earlier than the date that the Board of Governors of 
the Federal Reserve System publishes the supervisory stress test 
results of the covered bank's parent holding company.
    (B) If the Board of Governors of the Federal Reserve System 
publishes the supervisory stress test results of the covered bank's 
parent holding company prior to June 15, then such covered bank may 
publish its stress test results prior to June 15, but no later than 
July 15, through actual publication by the covered bank or through 
publication by the parent holding company under paragraph (b) of this 
section.
* * * * *

    Dated at Washington, DC, this 18th day of November 2014.

Federal Deposit Insurance Corporation.

    By order of the Board of Directors.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2014-27610 Filed 11-20-14; 8:45 am]
BILLING CODE 6714-01-P