[Federal Register Volume 83, Number 153 (Wednesday, August 8, 2018)]
[Notices]
[Pages 39093-39095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-16917]
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FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
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ACTION: Notice, request for comment.
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SUMMARY: The Board of Governors of the Federal Reserve System (Board)
invites comment on a proposal to revise, without extension, Capital
Assessments and Stress Testing (FR Y-14A/Q/M; OMB No. 7100-0341).
DATES: Comments must be submitted on or before October 9, 2018.
ADDRESSES: You may submit comments, identified by FR Y-14A, FR Y-14Q,
or FR Y-14M, by any of the following methods:
Agency website: http://www.federalreserve.gov. Follow the
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Email: [email protected]. Include OMB
number in the subject line of the message.
FAX: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
All public comments are available from the Board's website 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
3515, 1801 K Street NW (between 18th and 19th Streets NW), Washington,
DC 20006 between 9:00 a.m. and 5:00 p.m. on weekdays. For security
reasons, the Board requires that visitors make an appointment to
inspect comments. You may do so by calling (202) 452-3684. Upon
arrival, visitors will be required to present valid government-issued
photo identification and to submit to security screening in order to
inspect and photocopy comments.
Additionally, commenters may send a copy of their comments to the
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 or by
fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission,
including the proposed reporting form and instructions, supporting
statement, and other documentation will be placed into OMB's public
docket files, if approved. These documents will also be made available
on the Federal Reserve Board's public website at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears below.
Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--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.
SUPPLEMENTARY INFORMATION: On June 15, 1984, the Office of Management
and Budget (OMB) delegated to the Board authority under the Paperwork
Reduction Act (PRA) to approve and assign OMB control numbers to
collection of information requests and requirements conducted or
sponsored by the Board. In exercising this delegated authority, the
Board is directed to take every reasonable step to solicit comment. In
determining whether to approve a collection of information, the Board
will consider all comments received from the public and other agencies.
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is 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 collection, 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 information collection 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.
At the end of the comment period, the comments and recommendations
received will be analyzed to determine the extent to which the Federal
Reserve should modify the proposal.
Proposal To Approve Under OMB Delegated Authority the Revision, Without
Extension, of the Following Report
Report title: Capital Assessments and Stress Testing.
Agency form number: FR Y-14A/Q/M.
OMB control number: 7100-0341.
Frequency: Annually, semi-annually, quarterly, and monthly.
Respondents: The respondent panel consists of any top-tier bank
holding company (BHC) that has $100 billion or more in total
consolidated assets, as determined based on: (i) The average of the
firm's total consolidated assets in the four most recent quarters as
reported quarterly on the firm's FR Y-9C; or (ii) the average of the
firm's total consolidated assets in the most recent consecutive
quarters as reported quarterly on the firm's FR Y-9Cs, if the firm has
not filed an FR Y-9C for each of the most recent four quarters. The
respondent panel also consists of any U.S. intermediate holding company
(IHC). Reporting is required as of the first day of the quarter
immediately following the quarter in which the respondent meets this
asset threshold, unless otherwise directed by the Board.
Number of respondents: 36.
Estimated annual reporting hours: FR Y-14A: Summary, 63,864 hours;
Macro Scenario, 2,232 hours; Operational Risk, 648 hours; Regulatory
Capital Instruments, 756 hours; Business Plan Changes, 576 hours; and
Adjusted Capital Plan Submission, 500 hours. FR Y-14Q: Retail, 2,160
hours; Securities, 1,872 hours; Pre-Provision Net Revenue (PPNR),
102,385 hours; Wholesale, 21,744 hours; Trading, 92,448 hours;
Regulatory Capital Transitions, 3,312 hours; Regulatory Capital
Instruments, 7,776 hours; Operational risk, 7,200 hours; Mortgage
Servicing Rights (MSR) Valuation, 1,380 hours; Supplemental, 576 hours;
Retail Fair Value Option/Held for Sale (Retail FVO/HFS), 1,500 hours;
Counterparty, 24,672 hours; and Balances, 2,304 hours. FR Y-14M: 1st
Lien Mortgage, 210,528 hours; Home Equity, 173,376 hours; and Credit
Card, 86,016 hours. FR Y-14 On-going Automation Revisions, 17,280
hours. FR Y-14 Attestation On-going Audit and Review, 33,280 hours.
Estimated average hours per response: FR Y-14A: Summary, 887 hours;
Macro Scenario, 31 hours; Operational Risk, 18 hours; Regulatory
Capital Instruments, 21 hours; Business Plan Changes, 16 hours; and
Adjusted Capital Plan Submission, 100 hours. FR Y-14Q: Retail, 15
hours; Securities, 13 hours; PPNR, 711 hours; Wholesale, 151 hours;
Trading, 1,926 hours; Regulatory Capital
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Transitions, 23 hours; Regulatory Capital Instruments, 54 hours;
Operational Risk, 50 hours; MSR Valuation, 23 hours; Supplemental, 4
hours; Retail FVO/HFS, 15 hours; Counterparty, 514 hours; and Balances,
16 hours. FR Y-14M: 1st Lien Mortgage, 516 hours; Home Equity, 516
hours; and Credit Card, 512 hours. FR Y-14 On-going Automation
Revisions, 480 hours. FR Y-14 Attestation On-going Audit and Review,
2,560 hours.
General description of report: These collections of information are
applicable to top-tier BHCs with total consolidated assets of $100
billion or more and U.S. IHCs. This family of information collections
is composed of the following three reports:
The FR Y-14A collects 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 either annually or
semi-annually.
The quarterly FR Y-14Q collects granular data on various
asset classes, including loans, securities, and trading assets, and
PPNR for the reporting period.
The monthly FR Y-14M is comprised of three retail
portfolio- and loan-level schedules, and one detailed address-matching
schedule to supplement two of the portfolio and loan-level schedules.
The data collected through the FR Y-14A/Q/M reports provide the
Board with the information and perspective needed to help ensure that
large firms have strong, firm-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 complements other Board
supervisory efforts aimed at enhancing the continued viability of large
firms, including continuous monitoring of firms' planning and
management of liquidity and funding resources, as well as 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. To fully evaluate the data submissions, the Board may
conduct follow-up discussions with, or request responses to follow up
questions from, respondents. Respondent firms are currently required to
complete and submit up to 18 filings each year: two semi-annual FR Y-
14A filings, four quarterly FR Y-14Q filings, and 12 monthly FR Y-14M
filings. Compliance with the information collection is mandatory.
Proposed revisions: In December 2017, the Board approved
modifications to the FR Y-14 series of reports and a notice was
published in the Federal Register (December 15, 2017; 82 FR 59608). The
proposal modified the FR Y-14Q, Schedule L (Counterparty) effective as
of the March 31, 2018, report date. These changes included simplifying
the ranking methodology required for reporting positions and combining
the previously separate collections of counterparties as ranked by
derivatives and securities financing transactions (SFTs), respectively.
Following the finalization and adoption of these proposed changes, the
Board became aware of unintended omissions from the report forms and
instructions for the FR Y-14Q. The omitted items required respondents
to report their total stressed net current exposure under the two
supervisory stressed scenarios.
To rectify the unintended changes, the Board is proposing to revise
sub-schedule L.5 (Derivatives and SFT Profile) on the FR Y-14Q by
adding the mistakenly omitted items. This modification would allow
continued operationalization of supervisory modeling, and would provide
for total stressed net current exposure reporting under the two
supervisory stressed scenarios.
With the addition of the total stressed net current exposure item,
the instructions would be changed to modify the associated ranking
methodologies for the yearly stressed/CCAR submission in sub-schedule
L.5 to require the top 25 counterparties to be reported as ranked by
the total stressed net current exposure. This modification would ensure
that top counterparties are properly rank-ordered by the total stressed
net current exposure to be added on sub-schedule L.5 in a manner that
captures both derivative and securities financing transaction
exposures.
The proposed revisions do not result in a change to the estimated
burden for this series of reports, as the burden from the proposed
revisions is already captured in the burden estimates associated with
the FR Y-14Q report.
Board of Governors of the Federal Reserve System, August 2,
2018.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2018-16917 Filed 8-7-18; 8:45 am]
BILLING CODE 6210-01-P