[Federal Register Volume 84, Number 68 (Tuesday, April 9, 2019)]
[Notices]
[Pages 14113-14115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06991]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

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 extend for three years, with revision, 
the Market Risk Capital Rule (FR 4201; OMB No. 7100-0314).

DATES: Comments must be submitted on or before June 10, 2019.

ADDRESSES: You may submit comments, identified by FR 4201, 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 in Room 146, 
1709 New York Avenue 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 
Office of Management and Budget (OMB) Desk

[[Page 14114]]

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 Paperwork Reduction Act 
(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 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 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 Board's functions, including whether the 
information has practical utility;
    b. The accuracy of the Board'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 Board 
should modify the proposal.

Proposal Under OMB Delegated Authority To Extend for Three Years, With 
Revision, the Following Information Collection

    Report title: Market Risk Capital Rule.
    Agency form number: FR 4201.
    OMB control number: 7100-0314.
    Frequency: Reporting, annually; Recordkeeping, annually; 
Disclosure, annually and quarterly.
    Respondents: Bank holding companies (BHCs), savings and loan 
holding companies (SLHCs), intermediate holding companies (IHCs), and 
state member banks (SMBs) that meet certain risk thresholds. The market 
risk rule applies to any such banking organization with aggregate 
trading assets and trading liabilities equal to (1) 10 percent or more 
of quarter-end total assets or (2) $1 billion or more.\1\
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    \1\ 12 CFR 217.201(b)(1).
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    Estimated number of respondents: 37.
    Estimated average hours per response: Reporting, 1,088; 
Recordkeeping, 220; Disclosure, 68.
    Estimated annual burden hours: 13,148.
    General description of report: The market risk rule, which requires 
banking organizations to hold capital to cover their exposure to market 
risk, is an important component of the Board's regulatory capital 
framework (12 CFR part 217; Regulation Q). The Board may exclude a 
banking organization that is subject to the market risk rule if the 
Board determines that the exclusion is appropriate based on the level 
of market risk of the banking organization and is consistent with safe 
and sound banking practices.\2\ The Board may further apply the market 
risk rule to any other banking organization if the Board deems it 
necessary or appropriate because of the level of market risk of the 
banking organization or to ensure safe and sound banking practices.\3\
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    \2\ 12 CFR 217.201(b)(3).
    \3\ 12 CFR 217.201(b)(2).
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    The Board's market risk rule requires a subject banking 
organization to obtain the approval of the Board prior to (1) using any 
internal model to calculate its risk-based capital requirements under 
subpart F of the Board's Regulation Q; (2) including in its capital 
requirement for de minimis exposures the capital requirement for any de 
minimis exposures using alternative techniques that appropriately 
measure the market risk associated with those exposures; (3) including 
portfolios of equity positions in its incremental risk model if the 
banking organization measures the specific risk of a portfolio of debt 
positions using internal models; or (4) using the method specified in 
section 209(a) of Regulation Q to measure comprehensive risk for one or 
more portfolios of correlation trading positions. A subject banking 
organization also must obtain the prior approval of the Board for, and 
notify the Board if the banking organization makes any material changes 
to, the policies and procedures required by section 206(b)(3) of 
Regulation Q. Further, the market risk rule requires subject banking 
organizations to (1) have clearly defined policies and procedures for 
determining which trading assets and trading liabilities are trading 
positions and which trading positions are correlation trading 
positions; (2) have clearly defined trading and hedging strategies for 
trading positions; (3) retain certain financial and statistical 
information regarding the institution's Board-approved subportfolios of 
its portfolio exposures subject to the market risk rule; (4) have a 
formal disclosure policy that addresses the banking organization's 
approach for determining the market risk disclosures; and (5) make 
certain public quantitative disclosures.
    The collections of information provide current statistical data 
identifying market risk areas on which to focus onsite and offsite 
examinations. They also allow the Board to assess the levels and 
components of each reporting institution's risk-based capital 
requirements for market risk and the adequacy of the institution's 
capital under the market risk rule. Finally, these collections of 
information ensure capital adequacy of banking organizations according 
to their level of market risk and assist the Board in implementing and 
validating the market risk framework. There are no required reporting 
forms associated with this information collection.
    Proposed revisions: The Board proposes to revise the collections of 
information associated with the market risk rule to include the prior 
approvals a banking organization must obtain from the Board required by 
sections 217.203(c)(1) and 217.204(a)(2)(vi)(B) of the Board's 
Regulation Q.

[[Page 14115]]

    Legal authorization and confidentiality: The recordkeeping 
provisions of the Market Risk Capital Rule are authorized to be 
collected from SMBs pursuant to sections 9(6) and 11 of the Federal 
Reserve Act; \4\ from BHCs pursuant to section 5(c) of the Bank Holding 
Company Act (BHC Act) \5\ and, in some cases, section 165 of the Dodd-
Frank Act; \6\ from foreign banking organizations (FBOs) pursuant to 
section 8(a) of the International Banking Act \7\ and section 165 of 
the Dodd-Frank Act; and from SLHCs pursuant to section 10(b)(2) and (g) 
of the Home Owners' Loan Act (``HOLA'').\8\ Sections 9(6) and 11 of the 
Federal Reserve Act authorize the Board to require state member banks 
to submit reports, as necessary. Section 5(c) of the BHC Act authorizes 
the Board to require BHCs to submit reports to the Board regarding 
their financial condition, and section 8(a) of the International 
Banking Act subjects FBOs to the provisions of the BHC Act. Section 10 
of HOLA authorizes the Board to collect reports from SLHCs.
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    \4\ 12 U.S.C. 324 and 248(a).
    \5\ 12 U.S.C. 1844(c).
    \6\ 12 U.S.C. 5365.
    \7\ 12 U.S.C. 3106(a).
    \8\ 12 U.S.C. 1467a(b)(2) and (g).
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    The information collections under FR 4201 are mandatory. The 
information collected through the FR 4201 is collected as part of the 
Board's supervisory process, and therefore is afforded confidential 
treatment pursuant to exemption 8 of the Freedom of Information Act 
(``FOIA'').\9\ In addition, individual respondents may request that 
certain data be afforded confidential treatment pursuant to exemption 4 
of FOIA if the data has not previously been publically disclosed and 
the release of the data would likely cause substantial harm to the 
competitive position of the respondent.\10\ Determinations of 
confidentiality based on exemption 4 of FOIA would be made on a case-
by-case basis.
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    \9\ 5 U.S.C. 552(b)(8).
    \10\ 5 U.S.C. 552(b)(4).
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    Consultation outside the agency: The Board has consulted with the 
Federal Deposit Insurance Corporation and the Office of the Comptroller 
of Currency in confirming the burden estimates listed.

    Board of Governors of the Federal Reserve System, April 4, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-06991 Filed 4-8-19; 8:45 am]
 BILLING CODE 6210-01-P