[Federal Register Volume 83, Number 23 (Friday, February 2, 2018)]
[Notices]
[Pages 4957-4959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-02060]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Revision of an Approved 
Information Collection; Submission for OMB Review; Company-Run Annual 
Stress Test Reporting Template and Documentation for Covered 
Institutions With Total Consolidated Assets of $50 Billion or More 
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act

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

ACTION: Notice and request for comment.

-----------------------------------------------------------------------

SUMMARY: The OCC, 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 continuing 
information collection, as required by the Paperwork Reduction Act of 
1995 (PRA).
    In accordance with the requirements of the PRA, the OCC may not 
conduct or sponsor, and the respondent is not required to respond to, 
an information collection unless it displays a currently valid Office 
of Management and Budget (OMB) control number.
    Currently, the OCC is finalizing a revision to a regulatory 
reporting requirement for national banks and federal savings 
associations titled, ``Company-Run Annual Stress Test Reporting 
Template and Documentation for Covered Institutions with Total 
Consolidated Assets of $50 Billion or More under the Dodd-Frank Wall 
Street Reform and Consumer Protection Act.'' The OCC also is giving 
notice that it has sent the collection to OMB for review.

DATES: Comments must be received by March 5, 2018.

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: 1557-0319, 400 7th Street SW, Suite 3E-218, 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 or, for persons who are deaf or hearing impaired, TTY, (202) 649-
5597. Upon arrival, visitors will be required to present valid 
government-issued photo identification and submit to security screening 
in order to inspect and photocopy comments.
    All comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not include any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0319, U.S. Office of Management and Budget, 725 17th 
Street NW, #10235, Washington, DC 20503, or by email to: 
[email protected].

[[Page 4958]]


FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance 
Officer, (202) 649-5490 or, for persons who are deaf or hearing 
impaired, TTY, (202) 649-5597, Legislative and Regulatory Activities 
Division, Office of the Comptroller of the Currency, 400 7th Street SW, 
Washington, DC 20219. In addition, copies of the templates referenced 
in this notice can be found on the OCC's website under News and 
Issuances (http://www.occ.treas.gov/tools-forms/forms/bank-operations/stress-test-reporting.html).

SUPPLEMENTARY INFORMATION: The OCC is requesting comment on the 
following revision to an approved information collection:
    Title: Company-Run Annual Stress Test Reporting Template and 
Documentation for Covered Institutions with Total Consolidated Assets 
of $50 Billion or More under the Dodd-Frank Wall Street Reform and 
Consumer Protection Act.
    OMB Control No.: 1557-0319.
    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 are more than $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 requirement.\6\ This rule describes the reports and information 
collections required to meet the reporting requirements under section 
165(i)(2). Information collected will be kept private to the extent 
permitted by law.
---------------------------------------------------------------------------

    \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) (codified at 12 CFR part 46).
---------------------------------------------------------------------------

    In 2012, the OCC first implemented the reporting templates 
referenced in the final rule. See 77 FR 49485 (August 16, 2012) and 77 
FR 66663 (November 6, 2012). The OCC is now revising them as described 
below.
    The OCC intends to use the data collected to assess the 
reasonableness of the stress test results of covered institutions and 
to provide forward-looking information to the OCC regarding a covered 
institution's capital adequacy. The OCC 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 institution. The stress test results are expected to 
support ongoing improvement in a covered institution's stress testing 
practices with respect to its internal assessments of capital adequacy 
and overall capital planning.
    The OCC recognizes that many covered institutions with total 
consolidated assets of $50 billion or more are required to submit 
reports using Comprehensive Capital Analysis and Review (CCAR) 
reporting form FR Y-14A.\7\ The OCC also recognizes the Board has 
modified the FR Y-14A and, to the extent practical, the OCC has kept 
its reporting requirements consistent with the Board's FR Y-14A in 
order to minimize burden on covered institutions.\8\ The OCC is 
revising its reporting requirements to mirror the Board's FR Y-14A for 
covered institutions with total consolidated assets of $50 billion or 
more. In addition to the changes that parallel the Board's changes to 
the FR Y-14A, the OCC is also making two other changes. First, the OCC 
is modifying the OCC Supplemental Schedule. Second, the OCC is allowing 
federal savings associations to comply with the reporting requirements 
applicable to subsidiaries of large, noncomplex holding companies, as 
defined by the Board. These changes are described in more detail below.
---------------------------------------------------------------------------

    \7\ http://www.federalreserve.gov/reportforms.
    \8\ 82 FR 59608 (December 15, 2017).
---------------------------------------------------------------------------

Revisions to Reporting Templates That Mirror Changes by the Board

    The revisions to the DFAST-14A reporting templates consist of the 
following:
     Eliminating two schedules, the Regulatory Capital 
Transitions Schedule and Retail Repurchase Exposures Schedule;
     Adding one item to the counterparty worksheet of the 
summary schedule to collect information of Funding Valuation 
Adjustments (FVAs) for firms subject to the Global Market Shock;
     Modifying instructions to clarify reporting of ``Credit 
Loss Portion'' and ``Non-Credit Loss Portion'' information for AFS/HTM 
worksheets in the summary schedule.

OCC Supplemental Schedule

    In 2017 the OCC introduced a Supplemental Schedule that collects 
additional information not included in the FR Y-14A. The revisions 
include modifications to the OCC Supplemental Schedule. These 
modifications to the Supplemental Schedule consist of clarifying 
instructions as well as adding, deleting, and modifying existing data 
items. The total number of items in the Supplemental Schedule will be 
reduced by approximately half, reflecting the OCC's commitment to 
reducing the reporting burden associated with this schedule. In 
particular, the revisions delete existing data items on Allowance for 
Loan and Lease Loss data and Provisions data. The OCC periodically 
reviews its data collection to identify fields whose collection are no 
longer necessary to support the OCC's supervisory objectives, and the 
allowance and provision fields were identified for elimination as part 
of this review. The revisions also eliminate the materiality thresholds 
for the reporting of certain items. Only national banks that are 
subsidiaries of large, complex firms, as defined by the Board, are 
required to complete the Supplemental Schedule, and the OCC believes 
that it is appropriate and manageable for these larger national banks 
to report these items.

Federal Savings Associations

    Beginning in 2017, the Board and the OCC allowed institutions that 
were subsidiaries of large, non-complex holding companies, as defined 
by the Board, to comply with simplified reporting requirements and not 
complete certain subschedules of the FR Y-14A and DFAST-14A reporting 
forms. The revisions allow federal savings associations that qualify as 
over $50 billion covered institutions to comply with these simplified 
reporting requirements.
    Savings and loan holding companies are not currently required to 
submit the Board's FR Y-14A reporting forms. Similarly, the Board's 
capital plan rule includes a definition for ``large and noncomplex bank 
holding compan[ies]'' but does not include a parallel definition for 
savings and loan holding companies. Accordingly, savings and loan 
holding companies and federal

[[Page 4959]]

savings associations that have the same characteristics as other large 
and noncomplex firms would not technically qualify for the simplified 
reporting requirements. The revisions modify the DFAST-14A reporting 
forms and instructions to provide that all federal savings associations 
may comply with these simplified reporting requirements. This change 
promotes parity between national banks and federal savings associations 
that have similar size profiles and economic characteristics.

Response to Comments

    The OCC received one comment from a trade association. The 
commenter suggested that the effective date for changes to the OCC 
reporting templates align with changes to the Board's reporting forms. 
The commenter also suggested that there should be a minimum of six 
months between the publication of final changes to the reporting 
templates and the effective date of the changes. According to the 
commenter, it is important to factor in the amount of time necessary to 
resolve clarifying questions.
    The OCC recognizes the challenges with implementing changes in a 
timely and controlled manner. The OCC continues to balance the need to 
collect additional information with the objective of providing as much 
time as is feasible in advance of implementation. With respect to the 
changes in this notice, the OCC has sought to align effective dates for 
reporting requirements to the extent practical with synonymous changes 
to the Board's Y-14A. For example, the OCC is eliminating the 
Regulatory Capital Transitions Schedule and the Retail Repurchase 
Schedule to parallel the Board's changes to the Y-14A. The addition of 
one item to the counterparty worksheet to collect information on FVAs 
is consistent with changes made by the Board. The OCC believes that 
many of the reporting template changes are either burden-neutral or 
burden-reducing. In addition to eliminating the two schedules 
referenced above, the OCC is also reducing the number of data items in 
the Supplemental Schedule by approximately half. The OCC continually 
seeks to clarify and improve the DFAST-14A reporting instructions; 
nevertheless, as is the case with all reporting templates, there will 
always be clarifying questions from the industry, and the OCC seeks to 
respond to questions in a timely manner.
    The commenter also suggested that the technical instructions 
accompanying any changes in the reporting templates be subject to 
public notice and comment. The OCC will continue to publish technical 
instructions as early as feasible. The technical changes do not alter 
the burden associated with the reporting forms and do not impose 
additional requirements. The technical instructions provide procedures 
for the submission of DFAST-14A data, covering matters such as file 
format and other technical specifications. While the OCC publishes the 
technical instructions as early as possible, the OCC and the Board have 
historically not published the technical instructions for notice and 
comment.
    The commenter also questioned the need for the OCC Supplemental 
Schedule. The commenter suggested that the Supplemental Schedule did 
not serve a supervisory purpose. The commenter also opposed the 
elimination of the materiality thresholds for certain items, which the 
commenter believed would increase the reporting burden.
    The OCC considers those items included in the OCC Supplemental 
Schedule as material risks that are necessary for monitoring and 
assessing a covered institution's capital adequacy and capital planning 
process. By requiring only subsidiaries of large, complex firms, as 
defined by the Board, to complete this schedule, these requirements now 
align with reporting exceptions for a number of summary and operational 
risk subschedules. To minimize reporting burden the OCC has reduced the 
number of Supplemental Schedule reporting items in half as part of its 
process to continually ensure that only key risk elements are included 
within this schedule. As these items represent key risks, relatively 
smaller amounts of exposures within individual firms could represent 
material aggregate risks to the banking system. Therefore, the OCC has 
substituted materiality thresholds for reporting exemptions based on 
the size and complexity of the parent holding company, thereby aligning 
the reporting exceptions with a number of summary and operational risk 
subschedules.
    Regarding data collection challenges posed by the Supplemental 
Schedule for covered institutions, as noted in the instructions, 
covered institutions that cannot use existing models and methodologies 
to furnish requested information on the OCC Supplemental Schedule may 
use allocations, expert judgment, or other methods for projections of 
balances, losses, and allowances if data is not available at the 
requested level of granularity. Covered institutions should supply 
appropriate documentation explaining their approach.

Other Changes

    The OCC proposed to eliminate references to the term 
``extraordinary items'' to align with Federal Accounting Standards 
Board (FASB) Subtopic 255-30. The Board has decided to delay this 
change with respect to its FR Y-14A; therefore, in order to promote 
consistency between the OCC DFAST-14A and the FR Y-14A, the OCC will 
delay this change until further notice.
    Type of Review: Revision.
    Affected Public: Businesses or other for-profit.
    Estimated Number of Respondents: 26.
    Estimated Total Annual Burden: 13,949 hours.
    The OCC believes that the systems covered institutions use to 
prepare the FR Y-14 reporting templates to submit to the Board will 
also be used to prepare the reporting templates described in this 
notice. Comments submitted in response to this notice will be 
summarized and included in the request for OMB approval. All comments 
will become a matter of public record. 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: January 29, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief Counsel.
[FR Doc. 2018-02060 Filed 2-1-18; 8:45 am]
 BILLING CODE 4810-33-P