[Federal Register Volume 79, Number 241 (Tuesday, December 16, 2014)]
[Notices]
[Pages 74721-74722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-29296]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: Notice is hereby given of the final approval of a proposed 
information collection by the Board of Governors of the Federal Reserve 
System (Board) under OMB delegated authority, as per 5 CFR 1320.16 (OMB 
Regulations on Controlling Paperwork Burdens on the Public). 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 instrument(s) 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.

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Acting Clearance 
Officer--John Schmidt--Office of the Chief Data Officer, 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.
    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.
    Final approval under OMB delegated authority of the extension for 
three years, with revision of 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.
    Effective Dates: September 30, 2014, December 31, 2014, and March 
31, 2015.
    Frequency: Annually, semi-annually, quarterly and monthly.
    Reporters: Any top-tier U.S. bank holding company (BHC) that has 
$50 billion or more in total consolidated assets, as determined based 
on: (i) The average of the BHC's total consolidated assets in the four 
most recent quarters as reported quarterly on the BHC's Consolidated 
Financial Statements for Bank Holding Companies (FR Y-9C) (OMB No. 
7100-0128); or (ii) the average of the BHC's total consolidated assets 
in the most recent consecutive quarters as reported quarterly on the 
BHC's FR Y-9Cs, if the BHC has not filed an FR Y-9C for each of the 
most recent four quarters. Reporting is required as of the first day of 
the quarter immediately following the quarter in which it meets this 
asset threshold, unless otherwise directed by the Federal Reserve.
    Estimated annual reporting hours: FR Y-14A: Summary, 67,848 hours; 
Macro scenario, 2,046 hours; Operational Risk, 456 hours; Regulatory 
capital transitions, 759; and Regulatory capital instruments, 660 
hours. FR Y-14Q: Securities risk, 1,584 hours; Retail risk, 2,112 
hours; Pre-provision net revenue (PPNR), 93,852 hours; Wholesale 
corporate loans, 8,556 hours; Wholesale commercial real estate (CRE) 
loans, 8,280 hours; Trading risk, 69,336 hours; Regulatory capital 
transitions, 3,036 hours; Regulatory capital instruments, 5,280 hours; 
Operational risk, 6,600 hours; Mortgage Servicing Rights (MSR) 
Valuation, 1,152 hours; Supplemental, 528 hours; and Retail Fair Value 
Option/Held for Sale (Retail FVO/HFS), 1,408 hours; Counterparty credit 
risk (CCR), 16,632 hours; and Balances, 2,112 hours; FR Y-14M: Retail 
1st lien mortgage, 171,360 hours; Retail home equity, 165,240 hours; 
and Retail credit card, 110,160 hours. FR Y-14 Implementation, 21,600 
hours; and On-Going Automation for existing respondents, 14,400 hours.
    Estimated average hours per response: FR Y-14A: Summary, 1,028 
hours; Macro scenario, 31 hours; Operational Risk, 12 hours; Regulatory 
capital transitions, 23; and Regulatory capital instruments, 20 hours. 
FR Y-14Q: Securities risk, 12 hours; Retail risk, 16 hours; PPNR, 711 
hours; Wholesale corporate loans, 69 hours; Wholesale CRE loans, 69 
hours; Trading risk, 1,926 hours; Regulatory capital transitions, 23 
hours; Regulatory capital instruments, 40 hours; Operational risk, 34 
hours; MSR Valuation, 24 hours; Supplemental, 4 hours; and Retail FVO/
HFS, 16 hours; CCR, 441 hours; and Balances, 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, 7,200 hours; and On-
Going Automation for existing respondents, 480 hours.
    Number of respondents: 33.
    General description of report: The FRY-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 bank holding companies (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 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 exemption 4 of FOIA (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,

[[Page 74722]]

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 continuous monitoring of BHCs' planning and management 
of liquidity and funding resources and 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 semi-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.\1\ The quarterly FR Y-14Q collects granular data on BHCs' 
various asset classes and PPNR for the reporting period. The monthly FR 
Y-14M comprises three loan- and portfolio-level collections, and one 
detailed address matching collection to supplement two of the portfolio 
and loan-level collections. Both the FR Y-14Q and the FR Y-14M are used 
to support supervisory stress test models and for continuous monitoring 
efforts.
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    \1\ 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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    Current Actions: On October 1, 2014, the Federal Reserve published 
a final Federal Register notice (79 FR 59264) implementing several 
changes to the FR-14A/Q/M and extending the public comment period by 30 
days regarding the agreement-level/asset category counterparty 
information. The comment period expired on October 31, 2014. The 
Federal Reserve received one comment. The comment is summarized and 
addressed below.

Summary of Comment

    The Federal Reserve received one comment letter addressing the 
agreement-level/asset category counterparty information. The commenter 
requested clarification on several items, which will be provided 
through updated instructions as appropriate. More substantively, the 
commenter stated that the information collection as originally proposed 
on July 15, 2014 (79 FR 41276) could be provided, but noted that the 
information collected by sub-schedules L.5 and L.6 would require a 
significant amount of resources. Specifically, the commenter requested 
that implementation of these sub-schedules be delayed to March 31, 
2015.
    As stated in the October 1, 2014, Federal Register publication, 
more detailed counterparty data would allow the Federal Reserve to 
assess the reasonableness of the BHC's model-based estimates used as 
key inputs to the supervisory stress test as well as ensure the 
comparability of results across BHCs. Therefore, the Federal Reserve 
will keep sub-schedules L.5 and L.6 as finalized October 1, 2014 for 
the September 30, 2014 and December 31, 2014 reporting periods, with 
two minor exceptions noted below. Furthermore, the Federal Reserve will 
implement FR Y-14Q Schedule L as originally proposed on July 15, 2014 
effective March 31, 2015.

FR Y-14Q

Counterparty Schedule

    As noted above, effective March 31, 2015, Schedule L (Counterparty) 
of the FR Y-14Q will be revised to collect information as originally 
proposed on July 15, 2014. Specifically, the schedule will require that 
tables L.5.2 and L.6.2 be reported at a legal-entity, netting-agreement 
level. Furthermore, table L.5.2 will include the asset sub-categories 
as originally proposed for L.5.2. Tables L.5.1 and L.6.1 will remain as 
finalized on October 1, 2014, and continue to require reporting at a 
legal-entity, netting-agreement level. However, the commenter 
specifically also noted that the items ``CDS Hedge Stressed CR01'' and 
``CSA Contractual Features'' of table L.6.1 would be difficult to 
provide for the September 30, 2014, reporting period. The Federal 
Reserve appreciates the commenter's concerns regarding these items and 
makes these items optional through the December 31, 2014, reporting 
period, after which they will be mandatory.

    Board of Governors of the Federal Reserve System, December 10, 
2014.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2014-29296 Filed 12-15-14; 8:45 am]
BILLING CODE 6210-01-P