[Federal Register Volume 84, Number 175 (Tuesday, September 10, 2019)]
[Notices]
[Pages 47509-47511]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19522]


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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 Banking Organization Systemic Risk Report (FR Y-15; OMB No. 7100-
0352).

DATES: Comments must be submitted on or before November 12, 2019.

ADDRESSES: You may submit comments, identified by FR Y-15, 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 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, once 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.

SUPPLEMENTARY INFORMATION: On June 15, 1984, 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 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: Banking Organization Systemic Risk Report.
    Agency form number: FR Y-15.
    OMB control number: 7100-0352.
    Frequency: Quarterly.
    Respondents: The FR Y-15 panel is comprised of top-tier bank 
holding companies (BHCs) and covered savings and loan holding companies 
(SLHCs) with $50 billion or more in total consolidated assets, 
intermediate holding companies (IHCs) with $50 billion or more in total 
consolidated assets, and any BHC designated as a global systemically 
important bank holding company (GSIB) \1\ based on its method 1 score 
calculated as of December 31 of the previous calendar

[[Page 47510]]

year that does not otherwise meet the consolidated assets threshold for 
BHCs.\2\
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    \1\ See 12 CFR 217.402.
    \2\ According to the Board's statement issued in July 2018, the 
Board will take no action to require BHCs and covered SLHCs with 
less than $100 billion in total consolidated assets to file the FR 
Y-15, pursuant to the Economic Growth, Regulatory Relief, and 
Consumer Protection Act of 2018 (EGRRCPA). See https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20180706b1.pdf.
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    Estimated number of respondents: 37.
    Estimated average hours per response: 403 hours.
    Estimated annual burden hours: 59,644 hours.
    General description of report: Section 165 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Dodd-Frank Act) \3\ directs 
the Board to establish enhanced prudential standards, including risk-
based capital requirements, for certain large financial institutions. 
These standards must be more stringent than the standards applicable to 
other financial institutions that do not present similar risks to U.S. 
financial stability. Additionally, these standards must increase in 
stringency based on several factors, including the size and risk 
characteristics of a company subject to the rule, and the Board must 
take into account the differences among bank holding companies and 
nonbank financial companies.
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    \3\ Public Law 111-203 (2010); 12 U.S.C. 5365.
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    Pursuant to the requirement to establish enhanced risk-based 
capital standards under section 165 of the Dodd-Frank Act, the Board 
published a final rule establishing a GSIB surcharge on the largest, 
most interconnected U.S. BHCs in August 2015.\4\ The GSIB surcharge is 
calculated using an indicator-based approach that focuses on those 
aspects of a BHC's operations that are likely to generate negative 
externalities in the case of its failure or distress. The rule's 
methodologies assess six components of a BHC's systemic footprint: 
Size, interconnectedness, substitutability, complexity, cross-
jurisdictional activity, and reliance on short-term wholesale funding. 
The indicators comprising these six components are reported on the FR 
Y-15. More generally, the FR Y-15 report is used to monitor the 
systemic risk profile of the institutions that are subject to enhanced 
prudential standards under section 165.
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    \4\ 80 FR 49082 (August 14, 2015).
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    Additionally, section 165 the Dodd-Frank Act requires that the 
Board consider the extent to which a proposal would result in greater 
or more concentrated risks to the stability of the United States 
banking or financial system as part of its review of certain banking 
applications.\5\ The data reported on the FR Y-15 are used by the Board 
to analyze the systemic risk implications of such applications.
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    \5\ Public Law 111-203,604(d),(f); 12 U.S.C. 1842(c)(7) and 
1828(c)(5).
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    Proposed revisions: Under the proposal, the FR Y-15 would be 
revised by (1) adding trading volume items to the memoranda section of 
Schedule C (substitutability indicators) to capture the trading of 
securities issued by public sector entities, other fixed income 
securities, listed equities, and other securities; (2) adding a 
separate line item for equity securities with readily determinable fair 
values not held for trading on Schedule D (complexity indicators); (3) 
adding foreign derivative claims, total cross-jurisdictional claims, 
foreign derivative liabilities, other foreign liabilities, and total 
cross-jurisdictional liabilities to the memoranda section of Schedule E 
(cross-jurisdictional activity indicators); (4) adding a requirement 
that respondents keep a record of the data submitted; and (5) making 
other minor clarifications to the form and instructions. The proposed 
changes would be effective for reports reflecting the December 31, 
2019, report date. The proposed revisions would not affect the 
calculation of the GSIB surcharge.
    The Board proposes to add new memoranda items for trading volume to 
the substitutability category (Schedule C) of the FR Y-15. The 
substitutability schedule focuses on financial system infrastructure. 
Market liquidity is likely disrupted during a financial crisis, which 
could make it challenging for banks to find a substitute market 
participant, for example, in a timely manner. Disruptions to market 
liquidity can lead to a dislocation of asset prices, putting pressure 
on market participants' balance sheets and potentially resulting in 
adverse feedback loops such as preventing market participants from 
raising capital. The proposed trading volume memoranda items are 
necessary to capture bank activities in the secondary market, 
identifying potential sources of disruption to market liquidity. The 
addition of the trading volume items provides a more holistic view of 
market activity given that the underwriting items on Schedule C already 
capture activity in the primary market.
    In January 2016, the Financial Accounting Standards Board (FASB) 
issued ASU 2016-01. FASB described how one of the main provisions of 
the ASU differs from previous GAAP as follows: ``the amendments in this 
update supersede the guidance to classify equity securities with 
readily determinable fair values into different categories (that is, 
trading or available-for-sale) and require equity securities (including 
other ownership interests, such as partnerships, unincorporated joint 
ventures, and limited liability companies) to be measured at fair value 
with changes in the fair value recognized through net income.'' In 
order to make the FR Y-15 report consistent with ASU 2016-01, the 
proposal would revise the reporting forms and instructions by adding a 
new data item (6.) to Schedule D to separate and reclassify equity 
securities with readily determinable fair values from the available for 
sale category. This proposed change is consistent with the change that 
has already been made to the FR Y-9C report forms and instructions.
    The current GSIB assessment methodology uses the Bank for 
International Settlements (BIS) locational statistics to estimate 
cross-jurisdictional liabilities. This is achieved by adding the 
liabilities for branches and subsidiaries and then subtracting a bank's 
intragroup operations. In the BIS statistics, derivative claims/
receivables are reported at the consolidated level, while derivative 
liabilities are captured at the individual jurisdiction level based on 
local accounting rules. To avoid inconsistencies in the treatment of 
derivatives assets and liabilities, positions related to derivatives 
are excluded from the current indicators (i.e., cross-jurisdictional 
claims and liabilities). The proposal would add new memoranda items to 
Schedule E to capture foreign derivative liabilities and other foreign 
liabilities on an immediate risk basis. The sum of these two items 
would be captured separately as total cross-jurisdictional liabilities. 
The proposal would also add memoranda items to capture foreign 
derivative claims on an ultimate risk basis and total cross-
jurisdictional claims. These changes would harmonize data for claims 
and liabilities across jurisdictions.
    In addition to the information collections in the above schedules, 
the instructions for the FR Y-15 require respondents to retain a signed 
copy of the data submitted. The FR Y-15 currently does not account for 
this recordkeeping requirement, so the Board is proposing to revise the 
FR Y-15 to account for this collection of information.
    Legal authorization and confidentiality: The Board has the 
authority to require BHCs, SLHCs, and IHCs, to file the FR Y-15 
pursuant to,

[[Page 47511]]

respectively, section 5 of the Bank Holding Company Act (``BHC Act'') 
(12 U.S.C. 1844), and section 10(b) of the Home Owners' Loan Act (12 
U.S.C. 1467a(b)), in conjunction with section 8 of the International 
Banking Act (12 U.S.C. 3106). The FR Y-15 reports are mandatory. The 
data collected on the Y-15 is made public unless a specific request for 
confidentiality is submitted by the reporting entity, either on the FR 
Y-15 or on the form from which the data item is obtained. Such 
information may be accorded confidential treatment under exemption 4 of 
the Freedom of Information Act (``FOIA''), which protects from 
disclosure trade secrets and commercial or financial information (5 
U.S.C. 552(b)(4)). A number of the items in the FR Y-15 are retrieved 
from the FR Y-9C and other items may be retrieved from the FFIEC-101. 
Confidential treatment may also extend to any automatically-calculated 
items on the FR Y-15 that have been derived from confidential data 
items and that, if released, would reveal the underlying confidential 
data. To the extent confidential data collected under the FR Y-15 will 
be used for supervisory purposes, it may be exempt from disclosure 
under exemption 8 of the FOIA (5 U.S.C. 552(b)(8)).

    Board of Governors of the Federal Reserve System, September 5, 
2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-19522 Filed 9-9-19; 8:45 am]
BILLING CODE 6210-01-P