[Federal Register Volume 84, Number 76 (Friday, April 19, 2019)]
[Notices]
[Pages 16487-16488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07875]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is adopting a proposal to implement the Report of Institution-to-
Aggregate Granular Data on Assets and Liabilities on an Immediate
Counterparty Basis (FR 2510; OMB No. 7100-to be assigned).
DATES: The FR 2510 will be effective for the reporting period ending on
September 30, 2019.
FOR FURTHER INFORMATION CONTACT: 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.
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.
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. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. Copies of the Paperwork Reduction Act
Submission, supporting statements and approved collection of
information instrument(s) are placed into OMB's public docket files.
The Board may not conduct or sponsor, and the respondent is not
required to respond to, an information collection that has been
extended, revised, or implemented on or after October 1, 1995, unless
it displays a currently valid OMB control number.
Final Approval Under OMB Delegated Authority of the Implementation of
the Following Information Collection
Report title: Report of Institution-to-Aggregate Granular Data on
Assets and Liabilities on an Immediate Counterparty Basis.
Agency form number: FR 2510.
OMB control number: 7100-to be assigned.
Frequency: Quarterly, beginning with the reporting period ending on
September 30, 2019.
Respondents: Bank holding companies headquartered in the United
States that are global systemically important bank holding companies
(U.S. G-SIBs) under the Board's rules.\1\
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\1\ See 12 CFR part 217, subpart H.
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Estimated number of respondents: 8.
Estimated average hours per response: One-time implementation:
1,000 hours; ongoing: 568 hours.
Estimated annual burden hours: One-time implementation: 8,000
hours; ongoing: 18,176 hours.
General description of report: The FR 2510 will collect granular
exposure data on the assets, liabilities, and off-balance sheet
holdings of U.S. G-SIBs, providing breakdowns by instrument, currency,
maturity, and sector. The FR 2510 will also collect data covering
detailed positions for the top 35 countries of exposure, on an
immediate-counterparty basis (on the basis of the country of residence
of the borrower), as reported in the consolidated Country Exposure
Report of the Federal Financial Institutions Examination Council (FFIEC
009; OMB No. 7100-0035), broken out by instrument and counterparty
sector, with limited further breakouts by remaining maturity, subject
to a $2 billion minimum threshold for country exposure. Further, the FR
2510 would collect information on financial derivatives by instrument
type and foreign exchange derivatives by currency.
The FR 2510 will allow the Federal Reserve to conduct a more
complete balance sheet analysis of U.S. G-SIBs. Additionally, the FR
2510 will provide the Federal Reserve with valuable systemic
information through the collection of more granular data regarding
common or correlated exposures and funding dependencies than is
currently collected by existing reports by providing more information
about U.S. G-SIBs' consolidated exposures and funding positions to
different countries according to instrument, counterparty sector,
currency and remaining maturity.
Legal authorization and confidentiality: The information collection
is authorized under section 5 of the Bank Holding Company Act (12
U.S.C. 1844). The information collected in the FR 2510 will be
collected as part of the Board's supervisory process and therefore may
be afforded confidential treatment pursuant to exemption 8 of the
Freedom of Information Act (FOIA) (5 U.S.C. 552(b)(8)). In addition,
individual respondents may request that certain data be afforded
confidential treatment pursuant to exemption 4 of the 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 (5 U.S.C. 552(b)(4)). Determinations of confidentiality
based on exemption 4 of the FOIA will be made on a case-by-case basis.
Current actions: On August 27, 2018, the Board published a notice
in the Federal Register (83 FR 43680) requesting public comment for 60
days on the implementation of the FR 2510. The comment period for this
notice expired on October 26, 2018. The Board received two comments.
With the exception of certain changes discussed below, the FR 2510 will
be implemented as proposed.
[[Page 16488]]
Detailed Discussion of Public Comments: One commenter, a banking
association, stated that the FR 2510 would be a necessary step toward
narrowing the scope of the data collection from what the FSB originally
proposed. In addition, the commenter made six recommendations to the
Board:
First, the commenter requested that the Board delay the
implementation date in light of the following concerns:
Respondents will need time to revise their reporting
systems and develop the required controls for a new report;
Several respondents rely on external vendors, who cannot
begin software design work until the Board provides final approval and
releases the final technical specifications;
Several respondents are undergoing transformative changes
to their regulatory reporting systems, which will draw resources away
from FR 2510 implementation; and
Respondents are currently preparing for the upcoming
Comprehensive Capital Analysis and Review (CCAR),\2\ which will also
draw resources away from FR 2510 implementation.
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\2\ The Federal Reserve's CCAR exercises evaluate the capital
planning processes and capital adequacy of the largest U.S.-based
bank holding companies, including the firms' planned capital
actions, such as dividend payments and share buybacks.
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For these reasons, the commenter recommended that the Board delay
the proposed March 31, 2019, effective date to December 31, 2019, and
that in no case should reporting begin earlier than September 30, 2019.
The Board agrees with the commenter's recommendation to allow more time
and is thus delaying the effective date of the FR 2510 to September 30,
2019. The Board believes the revised effective date addresses the
commenter's concerns by providing institutions with sufficient time to
prepare their reporting systems and implement appropriate controls.
Second, the commenter stated that there would be insufficient time
to determine in each quarter the top 35 countries by total exposure as
requested in Table 2, Consolidated Balance Sheet, since current quarter
exposure data is based on the FFIEC 009, which has a filing deadline
only five days before the FR 2510 for the first, second, and third
calendar quarters. In response, the Board has clarified the
instructions to specify that the top 35 countries by total exposure
should be based on the four quarters preceding the current quarter.
Third, the commenter recommended that foreign exchange derivatives
reported on the Financial Derivatives and Foreign Exchange Derivatives
Schedules should be defined consistently between Board regulatory
reports and align with U.S. generally accepted accounting principles
(GAAP). As proposed, the Financial Derivatives Schedule would have been
populated automatically from the FR Y-15, which includes certain client
clearing derivatives not included on the FR Y-9C or the FR 2436. In
response, the Board has revised the instructions for the Financial
Derivatives Schedule by removing the reference to automatic data
population from the FR Y-15 and by aligning the schedule with U.S. GAAP
and the FR Y-9C and FR 2436.
Fourth, the commenter noted a difference in treatment between the
FR Y-9C and the FFIEC 009 for netting trading assets against trading
liabilities in the same security (Committee on Uniform Security
Identification Procedures (CUSIP) netting), which would affect
production of data for the FR 2510. To address this concern, the
commenter recommended revising the instructions to use the treatment of
CUSIP netting on the FFIEC 009. The commenter also suggested clarifying
the instructions so that the definition of country of residence for
individuals would be consistent with the FFIEC 009. In response, the
Board has revised the instructions to state that both the treatment of
CUSIP netting and the definition of country of residence for
individuals should be consistent with the FFIEC 009.
Fifth, the commenter requested that the Board provide
clarifications to a supplemental instructional document that anchors
the definitions of certain FR 2510 data items to the FR Y-9C and other
reports and update the supplemental instructional document to reflect
the current version of the FR Y-9C. The Board will provide the
requested clarifications and update the supplemental instructional
document in advance of the first FR 2510 filing date.
Sixth and finally, the commenter requested clarifications to the FR
2510 instructions for reporting of certificates of deposit held for
trading; reverse repurchase agreements and securities lending
agreements with household counterparts; master netting agreements; and
short sale contracts. In response, the Board has clarified the
instructions in these areas.
The other commenter, an individual, stated that the FR 2510
contains similarities to existing collections, such as the Central Bank
Survey of Foreign Exchange and Derivatives Market Activity (FR 3036;
OMB No. 7100-0285), the Treasury Department's Treasury International
Capital (TIC) B form for claims and liabilities by country and
counterparty type (OMB No. 1505-0020), and the TIC D form for
derivatives activity (OMB No. 1505-0199). While existing reports
collect data on exposures and funding positions to different countries,
it is important to note that the FR 2510 supports a more complete
balance sheet analysis and collects more granular data regarding
instruments, counterparty sector, currency, and residual maturity.
Therefore, the Board has not altered the proposal in response to this
comment.
Aside from the delayed implementation date and the instructional
changes discussed above, the Board will implement the FR 2510 as
originally proposed.
Board of Governors of the Federal Reserve System, April 16,
2019.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2019-07875 Filed 4-18-19; 8:45 am]
BILLING CODE 6210-01-P