[Federal Register Volume 80, Number 194 (Wednesday, October 7, 2015)]
[Notices]
[Pages 60680-60682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-25408]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Proposed Information 
Collection Revision; Comment Request (3064-0189)

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC), as part of 
its continuing effort to reduce paperwork and respondent burden, 
invites the general public and other Federal agencies to take this 
opportunity to comment on a revision of a 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 proposed information 
collection revisions and allow 60 days for public comment in response 
to the notice.
    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 FDIC is soliciting comment concerning its information collection 
titled, ``Annual Stress Test Reporting Template and Documentation for 
Covered Banks with Total Consolidated Assets of $10 Billion or More 
under Dodd-Frank'' (OMB Control No. 3064-0189).

DATES: Comments must be received by December 7, 2015.

ADDRESSES: You may submit written comments by any of the following 
methods:
     Agency Web site: http://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC 
Web site.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include ``Annual Stress Test 
Reporting'' on the subject line of the message.
     Mail: Gary A. Kuiper, Counsel, Legislation, Regulations 
and Opinions Section, MB-3074, Attention: Comments, FDIC, 550 17th 
Street NW., Washington, DC 20429.
     Hand Delivery/Courier: Guard station at the rear of the 
550 17th Street Building (located on F Street) on business days between 
7:00 a.m. and 5:00 p.m.
    Public Inspection: All comments received will be posted without 
change to http://www.fdic.gov/regulations/laws/federal/ including any 
personal information provided.
    Additionally, you may send a copy of your comments: By mail to the 
U.S. OMB, 725 17th Street NW., #10235, Washington, DC 20503 or by 
facsimile to 202.395.6974, Attention: Federal Banking Agency Desk 
Officer.

FOR FURTHER INFORMATION CONTACT: You can request additional information 
from Gary Kuiper, 202.898.3877, Legal Division, FDIC, 550 17th Street 
NW., MB-3074, Washington, DC 20429. In addition, copies of the 
templates referenced in this notice can be found on the FDIC's Web site 
(http://www.fdic.gov/regulations/laws/federal/).

SUPPLEMENTARY INFORMATION: The FDIC is requesting comment on the 
following revision of an information collection:

Annual Stress Test Reporting Template and Documentation for Covered 
Banks With Total Consolidated Assets of $10 Billion to $50 Billion 
Under Dodd-Frank

    Section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act \1\ (Dodd-Frank Act) requires certain financial 
companies, including state nonmember banks and state 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 state 
nonmember bank or state savings association is a ``covered bank'' and 
therefore subject to the stress

[[Page 60681]]

test requirements if its total consolidated assets exceed $10 billion. 
Under section 165(i)(2), a covered bank 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 15, 2012, the FDIC 
published in the Federal Register a final rule implementing the section 
165(i)(2) annual stress test requirement.\6\ The final rule, codified 
as Part 325 Subpart C of the FDIC's rules and regulations,\7\ requires 
covered banks to meet specific reporting requirements under section 
165(i)(2). In 2013, the FDIC first implemented the reporting templates 
for covered banks with total consolidated assets of $10 billion to $50 
billion and provided instructions for completing the reports.\8\ This 
notice describes revisions by the FDIC to those reporting templates, 
the information required, and related instructions. These information 
collections will be given confidential treatment to the extent allowed 
by law (5 U.S.C. 552(b)(4)).
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    \1\ Public Law 111-203 Sec.  165(i)(2), 124 Stat. 1376, 1430 
(July 21, 2010) (codified at 12 U.S.C. Sec.  5365(i)(2).
    \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 62417 (October 15, 2012).
    \7\ 12 CFR 325.201, et seq.
    \8\ See 78 FR 16263 (March 14, 2013) and 78 FR 63470 (October 
24, 2013).
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    Consistent with past practice, the FDIC intends to use the data 
collected through these revised templates to assess the reasonableness 
of the stress test results of covered banks and to provide forward-
looking information to the FDIC regarding a covered bank's capital 
adequacy. The FDIC also may use the results of the stress tests to 
determine whether additional analytical techniques and exercises could 
be appropriate to identify, measure, and monitor risks at the covered 
bank. The stress test results are expected to support ongoing 
improvement in a covered bank's stress testing practices with respect 
to its internal assessments of capital adequacy and overall capital 
planning.
    The FDIC recognizes that many covered banks with total consolidated 
assets of $10 billion to $50 billion are part of a holding company that 
is also required to submit relevant Dodd Frank Annual Stress Test 
(DFAST) reports to the Board. The FDIC, Office of Comptroller of the 
Currency, and Board have coordinated the preparation of stress testing 
templates in order to make the templates as similar as possible and 
thereby minimize the burden on affected institutions. These agencies 
have coordinated in a similar manner regarding these proposed 
modifications to the stress testing templates. Therefore, the revisions 
by the FDIC to its reporting requirements will remain consistent with 
the modifications that the Board proposes to make to the FR Y-16.

Description of Information Collection

    The FDIC DFAST 10-50 reporting form collects data through two 
primary schedules: (1) The 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) and (2) the Scenario Variables Schedule. In addition, 
respondents are required to submit a summary of the qualitative 
information supporting their quantitative projections. The qualitative 
supporting information must include:
     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
     the use of the stress test results.

Results Schedule

    For each of the three supervisory scenarios (baseline, adverse, and 
severely adverse), data are reported on two supporting schedules: (1) 
The Income Statement Schedule and (2) the Balance Sheet Schedule. 
Therefore, two supporting schedules for each scenario (baseline, 
adverse, and severely adverse) are completed. In addition, the Results 
Schedule includes a Summary Schedule, which summarizes key results from 
the Income Statement and Balance Sheet Schedules.
    Income statement data are collected on a projected quarterly basis 
showing projections of revenues and losses. For example, respondents 
project net charge-offs by loan type (stratified by twelve specific 
loan types), gains and losses on securities, pre-provision net revenue, 
and other key components of net income (i.e., provision for loan and 
lease losses, taxes, etc.).
    Balance sheet data are collected on a quarterly basis for 
projections of certain assets, liabilities, and capital. Capital data 
are also collected on a projected quarterly basis and include 
components of regulatory capital, including the projections of risk 
weighted assets and capital actions such as common dividends and share 
repurchases.

Scenario Variables Schedule

    To conduct the stress tests, an institution may 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. The Scenario 
Variables Schedule collects information on the additional scenario 
variables used over the planning horizon for each supervisory scenario.
    The proposed revisions to the FDIC DFAST reporting templates for 
covered banks with assets of $10 billion to $50 billion are described 
below.

Proposed Revisions to Reporting Templates for Banks With $10 Billion to 
$50 Billion in Assets

    On November 21, 2014, the FDIC approved a final rule \9\ that 
revised Part 325 Subpart C by modifying the 2016 stress test cycle and 
each annual cycle 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 modified 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.
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    \9\ 79 FR 69385 (November 21, 2014)
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    Specifically, 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.
    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.
    Due to the timing shift of the Dodd-Frank Act stress test, the FDIC 
is proposing several changes to conform the data collection to the 
final rule.
    The FDIC proposes to revise the FDIC DFAST 10-50 Summary Schedule 
by

[[Page 60682]]

modifying the financial as of date from September 30th to December 
31st. This revision is effective for the 2016 stress test cycle (with 
reporting in July 2016).
    In addition, the FDIC proposes to clarify the FDIC DFAST 10-50 
reporting form instructions to change the submission date from March 
31st to July 31st, to change references to the financial ``as of'' date 
from September 30th to December 31st, and to update the line items 
references to the new Call Report Instructions.

Burden Estimates

    The FDIC estimates the burden of this collection of information as 
follows:

Current

    Number of Respondents: 22.
    Annual Burden per Respondent: 469 hours.
    Total Annual Burden: 10,318 hours.

Proposed

    Estimated Number of Respondents: 22.
    Estimated Annual Burden per Respondent: 469 hours.
    Estimated Total Annual Burden: 10,318 hours.
    The FDIC does not expect that the changes to the DFAST 10-50 
Summary Schedule and reporting form instructions will result in an 
increase in burden. The burden for each $10 billion to $50 billion 
covered bank that completes the FDIC DFAST 10-50 Results Template and 
FDIC DFAST 10-50 Scenario Variables Template is estimated to be 469 
hours. The burden to complete the FDIC DFAST 10-50 Results Template is 
estimated to be 440 hours, including 20 hours to input these data and 
420 hours for work related to modeling efforts. The burden to complete 
the FDIC DFAST 10-50 Scenario Variables Template is estimated to be 29 
hours. The total burden for all 22 respondents to complete both 
templates is estimated to be 10,318 hours.
    Comments are invited on all aspects of the proposed changes to the 
information collection, particularly:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the FDIC, including whether the 
information has practical utility;
    (b) The accuracy of the FDIC'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;
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information; and
    (f) The ability of FDIC-supervised banks and savings associations 
with assets between $10 billion and $50 billion to provide the 
requested information to the FDIC by July 31, 2016.

    Dated at Washington, DC, this 30th day of September 2015.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015-25408 Filed 10-6-15; 8:45 am]
 BILLING CODE 6714-01-P