[Federal Register Volume 79, Number 226 (Monday, November 24, 2014)]
[Notices]
[Pages 69992-69994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27720]


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DEPARTMENT OF THE TREASURY

 Comptroller of the Currency


Agency Information Collection Activities; Company-Run Annual 
Stress Test Reporting Template and Documentation for Covered 
Institutions With Total Consolidated Assets of $10 Billion to $50 
Billion Under the Dodd-Frank Wall Street Reform and Consumer Protection 
Act

AGENCY: Office of the Comptroller of the Currency, Treasury (OCC).

ACTION: Notice.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other Federal 
agencies to comment on this continuing information collection, as 
required by the Paperwork Reduction Act of 1995. Under the Paperwork 
Reduction Act, Federal agencies are required to publish notice in the 
Federal Register concerning each proposed collection of information. An 
agency 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 OCC is soliciting comment on proposed revisions to the 
regulatory reporting templates and documentation for covered 
institutions with total consolidated assets of $10 billion to $50 
billion.

DATES: Comments must be received by December 24, 2014.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by 
email if possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-0311, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to 
(571) 465-4326 or by electronic mail to [email protected]. 
You may personally inspect and photocopy comments at the OCC, 400 7th 
Street SW., Washington, DC 20219. For security reasons, the OCC 
requires that visitors make an appointment to inspect comments. You may 
do so by calling (202) 649-6700. Upon arrival, visitors will be 
required to present valid government-issued photo identification and to 
submit to security screening in order to inspect and photocopy 
comments.
    All comments received, including attachments and other supporting

[[Page 69993]]

materials, are part of the public record and subject to public 
disclosure. Do not enclose any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.

FOR FURTHER INFORMATION CONTACT: You can request additional information 
from or a copy of the collection from Johnny Vilela or Mary H. 
Gottlieb, Clearance Officers, (202) 649-5490, for persons who are deaf 
or hard of hearing, TTY, (202) 649-5597, Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 400 7th 
Street SW., Suite 3E-218, Mail Stop 9W-11, Washington, DC 20219. In 
addition, copies of the templates referenced in this notice can be 
found on the OCC's Web site under Tools and Forms (http://www.occ.gov/tools-forms/forms/bank-operations/stress-test-reporting.html).

SUPPLEMENTARY INFORMATION: The OCC is requesting comment on a revision 
to the following information collection:
    Title: Company-Run Annual Stress Test Reporting Template and 
Documentation for Covered Institutions with Total Consolidated Assets 
of $10 Billion to $50 Billion under the Dodd-Frank Wall Street Reform 
and Consumer Protection Act.
    OMB Control No.: 1557-0311.
    Description: Section 165(i)(2) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act \1\ (Dodd-Frank Act) requires certain 
financial companies, including national banks and Federal savings 
associations, to conduct annual stress tests \2\ and requires the 
primary financial regulatory agency \3\ of those financial companies to 
issue regulations implementing the stress test requirements.\4\ A 
national bank or Federal savings association is a ``covered 
institution,'' and therefore subject to the stress test requirements if 
its total consolidated assets exceed $10 billion. Under section 
165(i)(2), a covered institution is required to submit to the Board of 
Governors of the Federal Reserve System (Board) and to its primary 
financial regulatory agency a report at such time, in such form, and 
containing such information as the primary financial regulatory agency 
may require.\5\ On October 9, 2012, the OCC published in the Federal 
Register a final rule implementing the section 165(i)(2) annual stress 
test requirements.\6\ On October 22, 2013 the OCC published in the 
Federal Register a notice describing the reports and information 
required under section 165(i)(2) for covered institutions with average 
total consolidated assets between $10 to $50 billion.\7\
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    \1\ Public Law 111-203, 124 Stat. 1376, July 2010.
    \2\ 12 U.S.C. 5365(i)(2)(A).
    \3\ 12 U.S.C. 5301(12).
    \4\ 12 U.S.C. 5365(i)(2)(C).
    \5\ 12 U.S.C. 5365(i)(2)(B).
    \6\ 77 FR 61238 (October 9, 2012).
    \7\ 78 FR 62942.
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    On October 11, 2013, the OCC published in the Federal Register 
revised risk- based and leverage capital requirements that implement 
the Basel III regulatory capital reforms and certain changes required 
by the Dodd-Frank Act (revised regulatory capital rule).\8\ The revised 
regulatory capital rule introduces the new common equity tier 1 capital 
component and a new common equity tier 1 capital ratio, changes the 
definition of regulatory capital items, and changes the calculation of 
risk-weighted assets. All banking organizations must comply with the 
revised regulatory capital rule beginning on January 1, 2015.
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    \8\ 78 FR 62018.
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    On July 17, 2014 the OCC published in the Federal Register notice 
of its intention to revise the reporting templates for covered 
institutions with $10 to $50 billion in assets to reflect the changes 
to the revised regulatory capital rule.\9\ The OCC received one comment 
in response to this notice.
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    \9\ 79 FR 41742.
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    In the notice the OCC proposed to add a common equity tier 1 
capital data item to the Balance Sheet and a common equity tier 1 risk-
based capital ratio data item to the Summary Schedule and Balance Sheet 
Schedules (baseline, adverse, and severely adverse scenarios) in order 
to reflect the requirements of the revised regulatory capital rule. 
These revisions would be effective for the 2015 stress test cycle 
(using September 2014 data with submission of results in March 
2015).\10\ In addition, the OCC proposed to clarify the accompanying 
instructions to emphasize that institutions should transition to the 
revised regulatory capital rule requirements in their company-run 
stress test projections in the quarter in which the requirements become 
effective. Specifically, institutions would be required to transition 
to the revised regulatory capital rule and begin including the common 
equity tier 1 capital data item and common equity tier 1 risk-based 
capital ratio data item in projected quarters two (1st quarter 2015) 
through nine (4th quarter 2016) for each scenario for the 2015 stress 
test cycle.
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    \10\ The OCC, the Board, and the Federal Deposit Insurance 
Corporation have proposed revisions to the schedule of the annual 
stress test. 79 FR 37231 (July 1, 2014). If the agencies adopt these 
revisions, the OCC expects to adjust its reporting instructions 
accordingly.
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    The OCC also proposed several clarifications to the reporting 
instructions including: Indicating that the Scenario Variables Schedule 
would be collected as a reporting form in Reporting Central (instead of 
as a file submitted in Adobe Acrobat PDF format) and clarifying how the 
supporting qualitative information should be organized.
    The OCC has worked closely with the Board and the Federal Deposit 
Insurance Corporation to make the agencies' respective rules 
implementing the annual stress testing requirements under the Dodd-
Frank Act consistent and comparable by requiring similar standards for 
scope of application, scenarios, data collection and reporting forms. 
The OCC also has worked to minimize any potential duplication of effort 
related to the annual stress test requirements.
    The OCC received one comment letter from a modeling service 
provider on the proposed revisions to the reporting templates and 
instructions. The commenter questioned the introduction of the new 
regulatory capital, risk-weighted asset, and regulatory capital ratio 
items in the reporting templates, asserting that covered institutions 
with $10-$50 billion in assets will lack relevant data for the new 
capital items in advance of when these items are required to be 
reported in the Consolidated Report of Condition and Income (Call 
Report). However, the additional items in the reporting templates 
should not place undue burden on these institutions as they have 
already been given additional time to incorporate the revised capital 
framework into their company-run stress tests. These institutions were 
not required to report these items in the 2013-2014 stress tests. In 
addition, the reporting templates and instructions have been updated to 
reference the applicable Call Report items that should be reported over 
the planning horizon, including new items that were created to capture 
the revised capital framework. Accordingly, the OCC is adopting the new 
items as proposed.
    The commenter also expressed concerns about the requirement that 
covered institutions publicly disclose a summary of the results of the 
stress tests. However, this requirement is contained in both the Dodd-
Frank Act and the OCC's stress test regulation.\11\ Moreover, the OCC 
believes that public disclosure of the summary of the results of the 
stress test using the new capital

[[Page 69994]]

rules will be informative to the public and reflects an important 
mechanism of both the statutory and regulatory company-run stress test 
framework.
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    \11\ 12 U.S.C. 5365(i)(2)(C)(iv); 12 CFR 46.8.
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    In response to a few technical comments, some minor changes will be 
made to the final reporting forms and instructions. These changes 
include clarified reporting instructions for the disallowed deferred 
tax asset and unrealized gains (losses) on AFS securities line items 
and updated descriptions of the total capital and total risk-based 
capital line items.
    Type of Review: Revision to an existing collection.
    Affected Public: Businesses or other for-profit.
    Burden Estimates:
    Estimated Number of Respondents: 29.
    Estimated Total Annual Burden: 13,601 hours.
    The burden for each $10 to $50 billion covered institution that 
completes the revised results template is estimated to be 445 hours for 
a total of 12,905 hours. The revisions are estimated to add 5 hours of 
additional burden per respondent, increasing the burden from 440 hours 
to 445 hours. This burden includes 20 hours to input these data and 425 
hours for work related to modeling efforts. The estimated revised 
burden for each $10 to $50 billion covered institution that completes 
the annual DFAST Scenarios Variables Template is estimated to be 24 
hours for a total of 696 hours.
    Comments continue to be invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the OCC, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's estimate of the burden of the 
collection of information;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the 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.

    Dated: November 18, 2014.
Stuart Feldstein,
Director, Legislative and Regulatory Activities Division.
[FR Doc. 2014-27720 Filed 11-21-14; 8:45 am]
BILLING CODE 4810-33-P