[Federal Register Volume 81, Number 242 (Friday, December 16, 2016)]
[Notices]
[Pages 91171-91173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29967]


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FEDERAL RESERVE SYSTEM

[Docket No. R-1535; RIN 7100 AE-49]


Banking Organization Systemic Risk Report (FR Y-15)

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

ACTION: Extension of filing deadline; request for comment.

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SUMMARY: The Board is extending the deadline to complete Schedule G of 
the Banking Organization Systemic Risk Report (FR Y-15) for certain 
firms.

DATES: Compliance with the filing requirements for Schedule G of the FR 
Y-15 is immediately extended until December 31, 2017, for certain firms 
and is immediately extended until June 30, 2018, for certain other 
firms. Comments must be received on or before February 14, 2017.

ADDRESSES: When submitting comments, please consider submitting your 
comments by email or fax because paper mail in the Washington, DC area 
and at the Board may be subject to delay. You may submit comments, 
identified by Docket No. R-1535; RIN 7100 AE-49, 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) between 9:00 a.m. and 5:00 p.m. on 
weekdays.

FOR FURTHER INFORMATION CONTACT: Anna Lee Hewko, Associate Director, 
(202) 530-6260, Constance M. Horsley,

[[Page 91172]]

Assistant Director, (202) 452-5239, Elizabeth MacDonald, Manager, (202) 
475-6316, or Sean Healey, Supervisory Financial Analyst, (202) 912-
4611, Division of Banking Supervision and Regulation; or Benjamin 
McDonough, Special Counsel, (202) 452-2036, Mark Buresh, Senior 
Attorney, (202) 452-5270, or Mary Watkins, Attorney, (202) 452-3722, 
Legal Division. Board of Governors of the Federal Reserve System, 20th 
and C Streets NW., Washington, DC 20551. For the hearing impaired only, 
Telecommunications Device for the Deaf (TDD) users may contact (202) 
263-4869.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Banking Organization Systemic Risk Report (FR Y-15) reporting 
form collects systemic risk data from U.S. bank holding companies, 
covered savings and loan holding companies,\1\ and intermediate holding 
companies with total consolidated assets of $50 billion or more. The 
Federal Reserve primarily uses the FR Y-15 data to monitor, on an 
ongoing basis, the systemic risk profile of the institutions that are 
subject to enhanced prudential standards under section 165 of the Dodd-
Frank Act. The information reported on the FR Y-15 also is used in the 
calculation of a bank holding company's method 1 and method 2 scores 
under the Board's risk-based capital surcharge for global systemically 
important bank holding companies (GSIB surcharge rule).\2\
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    \1\ Covered savings and loan holding companies are those which 
are not substantially engaged in insurance or commercial activities. 
For more information, see the definition of ``covered savings and 
loan holding company'' provided in 12 CFR 217.2.
    \2\ 12 CFR part 217, subpart H.
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    In connection with issuance of the GSIB surcharge rule, the Board 
revised the FR Y-15 to include Schedule G, which contains data used in 
the calculation of the short-term wholesale funding score that is a 
component of the method 2 score calculation.\3\ The revised FR Y-15 
required firms to begin providing Schedule G with the FR Y-15 as of 
December 31, 2016.\4\
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    \3\ See, 80 FR 77344 (December 14, 2015); 12 CFR 217.405-406.
    \4\ 80 FR 77344, 77345.
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    The Board's complex institution liquidity monitoring report (FR 
2052a) collects data on an institution's overall liquidity profile. 
While the FR 2052a collects a broader range of data on a more frequent 
and granular basis than the FR Y-15, the information collected on the 
FR 2052a includes the information necessary to complete Schedule G of 
the FR Y-15. When the Board finalized the FR 2052a reporting form, it 
provided a phase-in schedule to allow firms sufficient time to 
implement the systems necessary to complete the FR 2052a.\5\ Under the 
transition periods set forth in FR 2052a, firms with total consolidated 
assets of less than $700 billion and less than $10 trillion in assets 
under custody are not required to submit the FR 2052a until at least 
February 2017, a full year after the current effective date of the FR 
Y-15.
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    \5\ 80 FR 71795 (November 17, 2015).
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II. Extension of Deadline

    This extension of the filing deadline to complete Schedule G of the 
FR Y-15 (extension) delays the initial filing date of Schedule G for 
all firms, except for those that have $700 billion or more in total 
consolidated assets or $10 trillion or more in assets under custody. 
This delay will allow the FR 2052a phase-in schedule to be completed 
before a firm is required to complete Schedule G of the FR Y-15.
    Under the extension, firms that are required to file the FR Y-15 
that have $700 billion or more in total consolidated assets or $10 
trillion or more in assets under custody do not have an extended filing 
date and must complete Schedule G for the FR Y-15 filed as of December 
31, 2016. However, firms that are required to file the FR Y-15 and that 
have less than $10 trillion in assets under custody and less than $700 
billion in total consolidated assets, but have $250 billion or more in 
total consolidate assets or $10 billion or more in on balance sheet 
foreign exposure are not required to begin completing Schedule G until 
the report with the December 31, 2017, as of date. Firms that are 
required to file the FR Y-15 and that have less than: $10 trillion in 
assets under custody; $250 billion in total consolidated assets; and 
$10 billion in on-balance-sheet foreign exposure are not required to 
begin completing Schedule G until the report with the June 30, 2018, as 
of date. The table below describes the interaction between initial 
filing of the FR 2052a and the initial filing of Schedule G of the FR 
Y-15:

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                                                               FR 2052a                               FR Y-15
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                                                                                       First        First as-of
 U.S. firms with total consolidated        Filing  frequency        First as-of     submission       date for
               assets:                                                 date            date         Schedule G
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>=$700 billion or with >=$10          Daily.....................      12/14/2015      12/16/2015      12/31/2016
 trillion in assets under custody.
<$700 billion and with <$10 trillion  Monthly...................      01/31/2017      02/15/2017      12/31/2017
 in assets under custody, but total
 consolidated assets >=$250 billion
 or foreign exposure >=$10 billion.
>=$50 billion, but total              Monthly...................      07/31/2017      08/15/2017      06/30/2018
 consolidated assets <$250 billion
 and foreign exposure <$10 billion.
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    The extension revises the initial filing dates of Schedule G of the 
FR Y-15 to be consistent with the phase-in schedule for the FR Y 2052a. 
Without this change, firms would be required to implement the systems 
necessary to complete both the Schedule G of the FR Y-15 and much of 
the FR 2052a for the FR Y-15 report as of December 31, 2016. This would 
create significant immediate expense for firms and would be contrary to 
the phase-in schedule for completion of the FR 2052a.

III. Request for Comments

    The Board seeks comment on all aspects of the extension.

IV. Date of Action; Solicitation of Comments

    The interim final rule is being issued without prior notice and 
opportunity to comment and with an immediate effective date. Pursuant 
to the Administrative Procedure Act (APA), general notice and 
opportunity for public comment are not required prior to final agency 
action, if the agency, for good cause, finds that ``notice and public 
procedure thereon are impracticable, unnecessary, or contrary to the 
public interest.'' \6\ Immediate adoption of the extension would give

[[Page 91173]]

effect to the intended phase-in schedule for the FR 2052a by allowing 
certain firms additional time to complete Schedule G of the FR Y-15. 
Immediate adoption of this change also would provide clarity to firms 
required to file the FR Y-15 and FR 2052a regarding the interaction of 
the forms, and relieve burden on these firms by allowing additional 
time to develop the systems necessary to complete the FR Y-15 and FR 
2052a. Without the revised schedule of Schedule G of the FR Y-15 in the 
extension, many holding companies would expend significant resources to 
develop liquidity reporting systems significantly in advance of when 
these systems would otherwise become necessary. Further, since only 
certain summary statistics reported on Schedule G are released to the 
public, allowing certain firms additional time to complete Schedule G 
will not have a significant impact on the amount of information 
available to the public.\7\
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    \6\ 5 U.S.C. 553(b)(B). The APA also generally requires that 
notice of a final action be published in the Federal Register no 
less than 30 days before its effective date, unless the action 
grants or recognizes an exception or relieves a restriction, or as 
otherwise provided by the agency for good cause. 5 U.S.C. 553(d)(3).
    \7\ Items one through four of Schedule G receive confidential 
treatment until the liquidity coverage ratio disclosure standard has 
been implemented. Information for which confidential treatment is 
provided may subsequently be released in accordance with the terms 
of 12 CFR 261.16 or as otherwise provided by law.
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    The Board finds that, under these circumstances, prior notice and 
comment through the issuance of a proposal are impracticable and that 
the public interest is best served by making the extension effective as 
quickly as possible.

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 extension.\8\ 
Nonetheless, the Board believes that this extention would not have a 
significant economic impact on a substantial number of small entities. 
The Board requests comment on its conclusion that the extension should 
not have a significant economic impact on a substantial number of small 
entities.
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    \8\ 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 APA).
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    The RFA generally requires an agency to assess the impact a rule is 
expected to have on small entities.\9\ The RFA requires an agency 
either to provide a regulatory flexibility analysis or to certify that 
the extension will not have a significant economic impact on a 
substantial number of small entities. Based on this analysis and for 
the reasons stated below, the Board believes that the extension will 
not have a significant economic impact on a substantial number of small 
entities.
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    \9\ 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).\10\ As of June 30, 2016, there 
were approximately 3,203 top-tier small bank holding companies and 162 
small savings and loan holding companies.
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    \10\ 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 the extension will reduce regulatory burden 
by providing additional time for certain firms to complete Schedule G 
of the FR Y-15. The firms required to file the FR Y-15 are bank holding 
companies, savings and loan holding companies, and intermediate holding 
companies with $50 billion or more in total consolidated assets, as 
well as any U.S.-based organization designated as a global systemically 
important bank holding company. Therefore, neither Schedule G of the FR 
Y-15 nor this extension apply to small entities.
    The Board is aware of no other Federal rules that duplicate, 
overlap, or conflict with this extension. The Board does not believe 
that there are significant alternatives to the extension that would 
reduce the economic impact on small banking organizations supervised by 
the Board.

B. Solicitation of Comments on Use of Plain Language

    Section 722 of the Gramm-Leach-Bliley Act requires the agencies to 
use plain language in all proposed and final rules published after 
January 1, 2000. The agencies invite comment on how to make this 
extension easier to understand. For example:
     Have the agencies organized the material to suit your 
needs? If not, how could it be more clearly stated?
     Are the requirements in the rule clearly stated? If not, 
how could they be more clearly stated?
     Does the notice contain technical language or jargon that 
is not clear? If so, what language requires clarification?
     Would a different format (grouping and order of sections, 
use of headings, paragraphing) make the notice easier to understand? If 
so, what changes would make the notice easier to understand?
     Would more, but shorter, sections be better? If so, which 
sections should be changed?
     What else could be done to make the notice easier to 
understand?

C. Paperwork Reduction Act

    In accordance with section 3512 of the Paperwork Reduction Act of 
1995 (PRA) (44 U.S.C. 3501-3521), 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 Board reviewed the extension under 
the authority delegated to the Board by OMB. The extension contains no 
requirements subject to the PRA.

D. Administrative Procedure Act

    As noticed, the Administrative Procedure Act allows an agency to 
act immediately to adopt a rule without public notice and comment if 
the agency has ``good cause.'' \11\ In this case, the Board has good 
cause to issue the extension and to have the extension be effective 
immediately.\12\ The extension will provide certain firms additional 
time to complete Schedule G of the FR Y-15. The delay provides clarity 
to the industry regarding the Board's expectations for implementation 
of systems for monitoring and reporting liquidity positions and to 
ensure that these firms have sufficient time to develop these systems 
and the related risk management processes.
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    \11\ 12 U.S.C. 553(b).
    \12\ 12 U.S.C. 553(d).

    By order of the Board of Governors of the Federal Reserve 
System, December 9, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-29967 Filed 12-14-16; 11:15 am]
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