[Federal Register Volume 80, Number 22 (Tuesday, February 3, 2015)]
[Rules and Regulations]
[Pages 5666-5670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-02038]


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FEDERAL RESERVE SYSTEM

12 CFR Part 217

[Docket No. R-1508]
RIN 7100-AE 29


Regulation Q; Regulatory Capital Rules: Interim Final Rule To 
Exempt Small Savings and Loan Holding Companies From the Regulatory 
Capital Rules

AGENCY: Board of Governors of the Federal Reserve System (Board).

ACTION: Interim final rule with request for comment.

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SUMMARY: The Board invites comment on an interim final rule that would 
exempt savings and loan holding companies that have total consolidated 
assets of less than $500 million and meet certain other requirements 
from the Board's regulatory capital requirements (Regulation Q). This 
interim final rule implements a law recently passed by the U.S. 
Congress, which exempts small savings and loan holding companies from 
the minimum capital requirements mandated by section 171 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act that would meet 
the Board's Small Bank Holding Company Policy Statement if they were 
bank holding companies. In connection with this interim final rule, the 
Board is proposing to remove the requirement that qualifying savings 
and loan holding companies complete Schedule SC-R, Part I (Regulatory 
Capital Components and Ratios), of form FR Y-9SP (Parent Company Only 
Financial Statements for Small Holding Companies).

DATES: This interim final rule is effective January 30, 2015. Comments 
on the interim final rule must be received on or before March 5, 2015. 
Comments on the Paperwork Reduction Act burden estimates must be 
received on or before April 6, 2015.

ADDRESSES: You may submit comments, identified by Docket No. R-1508 and 
RIN No. 7100-AE 29, by any of the following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include the 
docket 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 will be made available on the Board's Web site 
at http://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., Washington, DC 20551)

[[Page 5667]]

between 9:00 a.m. and 5:00 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: Constance M. Horsley, Assistant 
Director, (202) 452-5239, Cynthia Ayouch, Manager, (202) 452-2204, 
Thomas Boemio, Manager (202) 452-2982, Douglas Carpenter, Senior 
Supervisory Financial Analyst, (202) 452-2205, or Page Conkling, 
Supervisory Financial Analyst (202) 912-4647), Capital and Regulatory 
Policy, Division of Banking Supervision and Regulation; Laurie 
Schaffer, Associate General Counsel, (202) 452-2277, Christine Graham, 
Counsel, (202) 452-3005, or Mark Buresh, Attorney, (202) 452-5270, 
Legal Division, Board of Governors of the Federal Reserve System, 20th 
and C Streets NW., Washington, DC 20551. For the hearing impaired only, 
Telecommunication Device for the Deaf (TDD), (202) 263-4869.

SUPPLEMENTARY INFORMATION: 

I. Background

    In 2010, Congress enacted the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank Act) to address weaknesses in the 
financial system that contributed to the financial crisis.\1\ In part, 
the Dodd-Frank Act transferred supervision and regulatory 
responsibility for savings and loan holding companies to the Board from 
the Office of Thrift Supervision, and authorized the Board to 
promulgate regulations and orders in connection with supervising 
savings and loan holding companies, including establishing regulatory 
capital requirements.\2\
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    \1\ Public Law 111-203, 124 Stat. 1376 (July 21, 2010).
    \2\ See 12 U.S.C. 5412; 12 U.S.C. 1467a(g)(1).
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    In addition, section 171 of the Dodd-Frank Act directed the Board 
to impose minimum regulatory capital requirements on state member 
banks, bank holding companies, and savings and loan holding companies 
that are no less than the generally applicable minimum capital 
requirements applicable to insured depository institutions.\3\ 
Recognizing that small bank holding companies historically had not been 
subject to the Board's capital adequacy guidelines, section 171 
exempted bank holding companies that were subject to the Board's Small 
Bank Holding Company Policy Statement (12 CFR part 225, appendix C) 
(Policy Statement).\4\ However, prior to enactment of Public Law 113-
250 (described below), there was no corresponding exception for small 
savings and loan holding companies.\5\
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    \3\ 12 U.S.C. 5371.
    \4\ As in effect as of May 19, 2010, the Board's Small Bank 
Holding Company Policy Statement applied to bank holding companies 
with pro forma consolidated assets of less than $500 million that 
(i) are not engaged in any nonbanking activities involving 
significant leverage; (ii) are not engaged in any significant off-
balance sheet activities; and (iii) do not have a significant amount 
of outstanding debt that is held by the general public. See 12 CFR 
225, appendix C.
    \5\ 12 U.S.C. 5371(b)(5)(C) (prior to the enactment of Pub. L. 
113-250).
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    As a result of these actions, savings and loan holding companies of 
all sizes were made subject to the same minimum capital requirements 
that are generally applicable to banks. In July 2013, the Board adopted 
revisions to its regulatory capital framework (Regulation Q) to 
strengthen the requirements applicable to bank holding companies and 
state member banks, apply the regulatory capital framework to savings 
and loan holding companies for the first time in accordance with 
section 171 of the Dodd-Frank Act, and implement various requirements 
of the Dodd-Frank Act, including section 171.\6\ Consistent with 
section 171 (prior to enactment of enactment of Pub. L. 113-250, 
described below), Regulation Q did not apply to small bank holding 
companies and generally applied to savings and loan holding companies, 
regardless of size, beginning on January 1, 2015.\7\
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    \6\ The Board and the OCC issued a joint final rule on October 
11, 2013 (78 FR 62018), and the FDIC issued a substantially 
identical interim final rule on September 10, 2013 (78 FR 55340). In 
April 2014, the FDIC adopted the interim final rule as a final rule 
with no substantive changes. 79 FR 20754 (April 14, 2014).
    \7\ 12 CFR 217.1(c), (f). The Board's Regulation Q does not 
apply to savings and loan holding companies that are substantially 
engaged in insurance underwriting or commercial activities. 12 CFR 
217.2.
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    In December 2014, Congress enacted and the President signed into 
law Public Law 113-250 (the Act).\8\ Among other changes, the Act 
revised section 171 of the Dodd-Frank Act to exempt a savings and loan 
holding company from the minimum regulatory capital requirements of 
section 171 of the Dodd-Frank Act effective on December 18, 2014, to 
the extent that the savings and loan holding company would have been 
exempt if it had been a small bank holding company that met the 
requirements of the Policy Statement (qualifying savings and loan 
holding company).\9\ While it appears that Congress intended to exempt 
a qualifying savings and loan holding company from minimum regulatory 
capital requirements upon passage of the Act, the Act instead simply 
removes the statutory requirement that the Board impose minimum 
regulatory capital requirements on such a savings and loan holding 
company. Because the Board adopted Regulation Q, as applied to savings 
and loan holding companies, pursuant to the Home Owners' Loan Act and 
the Board's general safety and soundness authority, prior to enactment 
of the Act, and those requirements became effective as of January 1, 
2015, the Board believes it is appropriate to issue an interim final 
rule revising Regulation Q to exempt qualifying savings and loan 
holding companies from consolidated regulatory capital requirements in 
a manner consistent with the Act. Without such action, qualifying 
savings and loan holding companies are subject to Regulation Q as of 
January 1, 2015.\10\
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    \8\ To enhance the ability of community financial institutions 
to foster economic growth and serve their communities, boost small 
businesses, increase individual savings, and for other purposes, 
Public Law 113-250 (December 18, 2014) (Pub. L. 113-250).
    \9\ Public Law 113-250, section 2(b). Public Law 113-250 also 
directs the Board to propose revisions to the Policy Statement that 
would increase the asset threshold for its applicability to bank 
holding companies from $500 million to $1 billion, and would apply 
the Policy Statement to savings and loan holding companies with 
total consolidated assets of less than $1 billion. Concurrent with 
this interim final rule, the Board is issuing a proposal to seek 
comment in implementing these other provisions of Public Law 113-
250.
    \10\ 12 CFR 217.1(f).
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II. The Interim Final Rule

    The interim final rule revises Regulation Q, effective January 30, 
2015, to exclude a qualifying savings and loan holding company from 
consolidated regulatory capital requirements. Specifically, the 
exclusion from Regulation Q would apply to a savings and loan holding 
company that has total consolidated assets of less than $500 million 
and that also meets the qualitative requirements set forth in the 
Policy Statement. These qualitative requirements specify that the 
savings and loan holding company: (i) Is not engaged in significant 
nonbanking activities either directly or through a nonbank subsidiary; 
(ii) does not conduct significant off-balance sheet activities 
(including securitization and asset management or administration) 
either directly or through a nonbank subsidiary; and (iii) does not 
have a material amount of debt or equity securities outstanding (other 
than trust preferred securities) that are registered with the 
Securities and Exchange Commission (SEC) (Qualitative Requirements).
    The Policy Statement currently applies only to bank holding 
companies. As such, the first Qualitative Requirement uses the terms

[[Page 5668]]

``nonbanking activities'' and ``nonbank subsidiary'' to refer to the 
activities of a bank holding company. Under the Bank Holding Company 
Act of 1956, however, control of a savings association by a bank 
holding company is considered a nonbanking activity.\11\ Because 
savings and loan holding companies control savings associations, all of 
their activities, including the control of savings associations, would 
be considered nonbanking activities under the Policy Statement. The 
Board believes this outcome would be inconsistent with Congressional 
intent to apply the Policy Statement to savings and loan holding 
companies.\12\
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    \11\ See 12 U.S.C. 1841(c)(2)(B), 1841(j), and 1843(i)(1).
    \12\ See, e.g., Public Law 113-250, sec. 2(b).
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    As is the case with bank holding companies, whether a savings and 
loan holding company engages in ``significant'' nonbanking activities 
(other than operation of one or more savings associations) will depend 
on the scope of the activities of the savings and loan holding company, 
the nature and level of risk of the activities, the condition of the 
savings and loan holding company, and other criteria as 
appropriate.\13\
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    \13\ For purposes of applying the Policy Statement to savings 
and loan holding companies, the term ``nonbank subsidiary'' as used 
in the Policy Statement would refer to a subsidiary of a savings and 
loan holding company other than a savings association or a 
subsidiary of a savings association.
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III. Related Rulemaking and Revisions to Reporting Requirements

    In connection with this interim final rule, the Board proposes to 
remove the requirement that qualifying savings and loan holding 
companies complete Schedule SC-R, Part I (Regulatory Capital Components 
and Ratios) of form FR Y-9SP (Parent Company Only Financial Statements 
for Small Holding Companies).\14\ This schedule would have collected 
information on consolidated regulatory capital components and ratios 
from qualifying savings and loan holding companies that are subject to 
Regulation Q, effective June 30, 2015. Because the interim final rule 
excludes a qualifying savings and loan holding company from Regulation 
Q, the Board would not require such a savings and loan holding company 
to report information regarding regulatory capital components on the 
form FR Y-9SP.
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    \14\ Pursuant to Paperwork Reduction Act's emergency review 
process, 44 U.S.C. 3507(j), the Board is filing an emergency 
clearance review to remove the requirement that qualifying savings 
and loan holding companies complete Schedule SC-R, Part I of form FR 
Y-9SP. The change implemented through the emergency clearance 
process would be effective for six months. The Board is now 
proposing to make the change permanent and invites public comment.
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    In addition to amending section 171 for qualifying savings and loan 
holding companies as described above, the Act directs the Board to 
publish in the Federal Register proposed revisions to the Policy 
Statement that provide that the Policy Statement shall apply to bank 
holding companies and savings and loan holding companies that have pro 
forma consolidated assets of less than $1 billion. Elsewhere in today's 
Federal Register, the Board is inviting comment on a proposal that 
would raise the asset size threshold for determining applicability of 
the Policy Statement and expand the scope of the Policy Statement to 
include savings and loan holding companies.

IV. Request for Comments

    The Board invites comment on all aspects of the interim final rule.

V. Effective Date; Solicitation of Comments

    This interim final rule is effective January 30, 2015. Pursuant to 
the Administrative Procedure Act (APA), at 5 U.S.C. 553(b)(B), notice 
and comment are not required prior to the issuance of a final rule if 
an agency, for good cause, finds that ``notice and public procedure 
thereon are impracticable, unnecessary, or contrary to the public 
interest.'' \15\ Similarly, a final rule may be published with an 
immediate effective date if an agency finds good cause and publishes 
such with the final rule.\16\ In December 18, 2014, the President 
signed into law Public Law 113-250, which revised section 171 of the 
Dodd-Frank Act. Public Law 113-250 was effective upon enactment and 
exempts a savings and loan holding company from the minimum capital 
requirements of section 171 of the Dodd-Frank Act to the extent that 
the savings and loan holding company would have been exempt if it were 
a similarly-sized bank holding company. Prior to enactment of the Act, 
the Board revised the minimum capital requirements in accordance with 
section 171 of the Dodd-Frank Act and, in accordance with that section, 
made these minimum capital requirements applicable to savings and loan 
holding companies of all sizes. Because Congress intended to exempt 
qualifying savings and loan holding companies from minimum capital 
requirements upon passage of the Act, the Board believes it is 
appropriate to revise Regulation Q in order to effect Congressional 
intent. Immediate adoption of revisions to Regulation Q would implement 
Congressional intent, provide clarity to the public and qualifying 
savings and loan holding companies regarding the capital rules 
applicable to them, and relieve burden on qualifying savings and loan 
holding companies that became subject to Regulation Q for the first 
time beginning on January 1, 2015.
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    \15\ 5 U.S.C. 553(b)(3)(B).
    \16\ 5 U.S.C. 553(d)(3).
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    The Board finds that, under these circumstances, prior notice and 
comment through the issuance of a notice of proposed rulemaking are 
impracticable and that the public interest is best served by making the 
rule effective January 30, 2015. Delaying revisions to Regulation Q to 
complete a traditional notice and comment rulemaking process would 
cause qualifying savings and loan holding companies to expend 
significant resources to come into compliance with Regulation Q, only 
to be relieved from these requirements upon the effective date of the 
Board's final regulations implementing the changes contemplated by the 
Act.
    For these reasons, the Board finds good cause to dispense with the 
delayed effective date otherwise required by 5 U.S.C. 553(b)(B) and 
553(d)(3).

VI. Regulatory Analysis

A. Regulatory Flexibility Act Analysis

    The requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq) (RFA) are not applicable to this interim final rule.\17\ 
Nonetheless, the Board believes that the interim final rule would not 
have a significant economic impact on a substantial number of small 
entities. The Board requests comment on its conclusion that the new 
interim final rule should not have a significant economic impact on a 
substantial number of small entities.
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    \17\ The requirements of the RFA are not applicable to rules 
adopted under the Administrative Procedure Act's ``good cause'' 
exception. See 5 U.S.C. 601(2) (defining ``rule'' and notice 
requirements under the Administrative Procedure Act).
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    The RFA generally requires an agency to assess the impact a rule is 
expected to have on small entities.\18\ The RFA requires an agency 
either to provide a regulatory flexibility analysis or to certify that 
the interim final rule will not have a significant economic impact on a 
substantial number of small

[[Page 5669]]

entities. Based on this analysis and for the reasons stated below, the 
Board believes that this interim final rule will not have a significant 
economic impact on a substantial number of small entities.
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    \18\ Under standards the U.S. Small Business Administration has 
established, an entity is considered ``small'' if it has $175 
million or less in assets for banks and other depository 
institutions. U.S. Small Business Administration, Table of Small 
Business Size Standards Matched to North American Industry 
Classification System Codes, available at http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf.
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    Under regulations issued by the U.S. Small Business Administration, 
a small entity includes a depository institution, bank holding company, 
or savings and loan holding company with total assets of $550 million 
or less (a small banking organization).\19\ As of June 30, 2014, there 
were 254 small savings and loan holding companies.
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    \19\ See 13 CFR 121.201. Effective July 14, 2014, the Small 
Business Administration revised the size standards for banking 
organizations to $550 million in assets from $500 million in assets. 
79 FR 33647 (June 12, 2014).
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    The Board believes that this interim final rule will reduce 
regulatory burden by excluding a significant majority of savings and 
loan holding companies with less than $500 million in total 
consolidated assets from the Board's regulatory capital requirements in 
Regulation Q. The Board believes that most affected savings and loan 
holding companies currently have sufficient capital to satisfy the 
minimum requirements of Regulation Q. Therefore, the relief provided by 
this interim final rule relates largely to the significant burden of 
establishing and maintaining the systems necessary to monitor and 
demonstrate compliance with Regulation Q.
    The Board is aware of no other Federal rules that duplicate, 
overlap, or conflict with this interim final rule. The Board does not 
believe that there are significant alternatives to the interim final 
rule that would reduce the economic impact on small banking 
organizations supervised by the Board.

B. Paperwork Reduction Act Analysis

    In accordance with section 3512 of the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3521) (PRA), the Board 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 OMB control number is 7100-0128. 
The Board reviewed the interim final rule under the authority delegated 
to the Board by OMB. The interim final rule contains requirements 
subject to the PRA. The reporting requirements are found in sections 
217.1(c)(1)(iii).
    Comments are invited on:
    (a) Whether the proposed collections of information are 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 collections, 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 the information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    (e) Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.
    All comments will become a matter of public record. Comments on 
aspects of this notice that may affect reporting, recordkeeping, or 
disclosure requirements and burden estimates should be sent to: 
Secretary, Board of Governors of the Federal Reserve System, 20th and C 
Streets NW., Washington, DC 20551. A copy of the comments may also be 
submitted to the OMB desk officer: By mail to U.S. Office of Management 
and Budget, 725 17th Street NW., #10235, Washington, DC 20503 or by 
facsimile to 202-395-5806, Attention, Agency Desk Officer.

Proposed Revisions, With Extension, to the Following Information 
Collection

    Title of Information Collection: Consolidated Financial Statements 
for Holding Companies; Parent Company Only Financial Statements for 
Large Holding Companies; Parent Company Only Financial Statements for 
Small Holding Companies; Financial Statements for Employee Stock 
Ownership Plan Holding Companies; and Supplement to the Consolidated 
Financial Statements for Holding Companies.
    Agency Form Number: FR Y-9C; FR Y-9LP; FR Y-9SP; FR Y-9ES; and FR 
Y-9CS.
    OMB Control Number: 7100-0128.
    Frequency of Response: Quarterly, semiannually, annually, and on 
occasion.
    Affected Public: Businesses or other for-profit.
    Respondents: Bank holding companies, savings and loan holding 
companies, and securities holding companies (collectively, ``holding 
companies'').
    Abstract: In 2013, the Board revised its regulatory capital rules 
(revised regulatory capital rules),\20\ requiring corresponding 
revisions to the FR Y-9C and FR Y-9SP. Effective March 31, 2014, the 
Federal Reserve split the Schedule HC-R, Regulatory Capital, on the FR 
Y-9C into two parts: Part I, which collected information on regulatory 
capital components and ratios under the revised regulatory capital 
rules, and Part II, which collected information on the existing risk-
weighted assets reporting requirements. Advanced approaches holding 
companies, except savings and loan holding companies, began reporting 
on the proposed Schedule HC-R, Part I.B, Regulatory Capital Components 
and Ratios \21\ effective March 2014. All other HC-R filers would begin 
reporting on the proposed Schedule HC-R, Part I, Regulatory Capital 
Components and Ratios, effective March 31, 2015.\22\ The Board also 
approved in January 2014, Schedule SC-R, Part I, Regulatory Capital 
Components and Ratios, to collect information on consolidated 
regulatory capital components and ratios from small SLHCs that are 
subject to the revised regulatory capital rules, effective June 30, 
2015. Schedule SC-R, Part I, would collect the same data items as 
Schedule HC-R, Part I, except Schedule HC-R, Part I, would collect

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additional data from advanced approaches HCs.
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    \20\ The revised regulatory capital rules were approved and 
issued by the Board in July 2013 and published in the Federal 
Register on October 11, 2013. See 78 FR 62018.
    \21\ An advanced approaches institution as defined in section 
100 of the revised regulatory capital rules (i) has consolidated 
total assets (excluding assets held by an insurance underwriting 
subsidiary) on its most recent year-end regulatory report equal to 
$250 billion or more; (ii) has consolidated total on-balance sheet 
foreign exposure on its most recent year-end regulatory report equal 
to $10 billion or more (excluding exposures held by an insurance 
underwriting subsidiary), as calculated in accordance with FFIEC 009 
(OMB No. 7100-0035); (iii) is a subsidiary of a depository 
institution that uses the advanced approaches pursuant to subpart E 
of 12 CFR part 3 (OCC), 12 CFR part 217 (Board), or 12 CFR part 325 
(FDIC) to calculate its total risk-weighted assets; (iv) is a 
subsidiary of a BHC or SLHC that uses the advanced approaches 
pursuant to 12 CFR part 217 to calculate its total risk-weighted 
assets; or (v) elects to use the advanced approaches to calculate 
its total risk-weighted assets. See 78 FR 62018.
    \22\ During the 2014 reporting periods, Part I Schedule HC-R was 
divided into Part I.A and Part I.B. Part I.A (completed by non-
advanced approaches HCs) included data items 1 through 33 of current 
Schedule HC-R. Part I.B (completed by advanced approaches HCs) 
included reporting revisions consistent with the revised regulatory 
capital rules. Part II (completed by all HC-R filers) included data 
items 34 through Memoranda item 10 of current Schedule HC-R. 
Effective March 31, 2015, Part I.A would be removed and Part I.B 
would become Part I (to be completed by all HC-R filers). Part II 
would be renumbered data items 1 through Memoranda item 4 and, 
consistent with the revised regulatory capital rules, would 
implement the standardized approach for the risk weighting of assets 
(to be completed by all HC-R filers).
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    Pursuant to the PRA's emergency review process, 44 U.S.C. 3507(j), 
the Board is filing an emergency clearance review to eliminate Schedule 
SC-R, Regulatory Capital, Part I, on the Parent Company Only Financial 
Statements for Small Holding Companies (FR Y-9SP) to reduce burden on 
small SLHCs immediately. In the emergency submission, the burden for 
the FR Y-9SP related to the elimination of Schedule SC-R, Regulatory 
Capital, Part I, would decrease by 156,935 hours. The change 
implemented through the emergency clearance process would be effective 
for six months. The Board is now proposing to make the change permanent 
and welcomes public comment on any aspect of this information 
collection. The burden estimates below reflect the updated number from 
the total emergency clearance review.

Estimated Paperwork Burden

    Estimated Burden per Response:
FR Y-9C (non Advanced Approaches bank holding companies)--48.84 hours;
FR Y-9C (Advanced Approaches bank holding companies)--50.09 hours;
FR Y-9LP--5.25 hours;
FR Y-9SP--5.40 hours;
FR Y-9ES--0.5 hours; and
FR Y-9CS--0.5 hours.
    Number of respondents:
FR Y-9C (non Advanced Approaches bank holding companies)--644;
FR Y-9C (Advanced Approaches bank holding companies)--12;
FR Y-9LP--818;
FR Y-9SP--4,390;
FR Y-9ES--86; and
FR Y-9CS--236.
    Total estimated annual burden:
FR Y-9C (non Advanced Approaches bank holding companies)--125,812 
hours;
FR Y-9C (Advanced Approaches bank holding companies)--2,404 hours;
FR Y-9LP--17,178 hours;
FR Y-9SP--47,412 hours;
FR Y-9ES--43 hours; and
FR Y-9CS--472 hours. (Total burden 193,321 hours)

C. Plain Language

    Section 722 of the Gramm-Leach-Bliley Act requires the Federal 
banking agencies to use ``plain language'' in all proposed and final 
rules published after January 1, 2000. In light of this requirement, 
the Board has sought to present the interim final rule in a simple and 
straightforward manner. The Board invites comments on whether there are 
additional steps it could take to make the rule easier to understand.

List of Subjects in 12 CFR Part 217

    Administrative practice and procedure, Banks, banking, Capital, 
Federal Reserve System, Holding companies, Reporting and recordkeeping 
requirements, Securities.

Board of Governors of the Federal Reserve System

12 CFR CHAPTER II

Authority and Issuance

    For the reasons set forth in the supplementary information, the 
Board amends 12 CFR Chapter II part 217 to read as follows:

PART 217--CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS AND 
LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS (REGULATION Q)

0
1. The authority citation for part 217 continues to read as follows:

    Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 
1818, 1828, 1831n, 1831o, 1831p-l, 1831w, 1835, 1844(b), 1851, 3904, 
3906-3909, 4808, 5365, 5368, 5371.


0
2. In Sec.  217.1, amend paragraph (c)(1)(iii) to read as follows:


Sec.  217.1  Purpose, applicability, reservations of authority, and 
timing.

* * * * *
    (c) * * *
    (1) * * *
    (iii) A covered savings and loan holding company domiciled in the 
United States, other than a savings and loan holding company that has 
total consolidated assets of less than $500 million and meets the 
requirements of 12 CFR part 225, Appendix C, as if the savings and loan 
holding company were a bank holding company and the savings association 
were a bank. For purposes of compliance with the capital adequacy 
requirements and calculations in this part, savings and loan holding 
companies that do not file the FR Y-9C should follow the instructions 
to the FR Y-9C.
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, January 29, 2015.
Michael Lewandowski,
Associate Secretary of the Board.
[FR Doc. 2015-02038 Filed 1-30-15; 11:15 am]
BILLING CODE 6210-01-P