[Federal Register Volume 84, Number 187 (Thursday, September 26, 2019)]
[Notices]
[Pages 50840-50844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20928]


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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 Financial Statements for Holding Companies (FR Y-9 Reports; OMB No. 
7100-0128).

DATES: Comments must be submitted on or before November 25, 2019.

ADDRESSES: You may submit comments, identified by FR Y-9 Reports by any 
of the following methods:
     Agency Website: https://www.federalreserve.gov/. Follow 
the instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Email: [email protected]. Include the OMB

[[Page 50841]]

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 
https://www.federalreserve.gov/apps/foia/proposedregs.aspx as 
submitted, unless modified for technical reasons or to remove 
personally identifiable information at the commenter's request. 
Accordingly, 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 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 https://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 PRA to approve and assign OMB control numbers to 
collections of information 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: Financial Statements for Holding Companies.
    Agency form number: FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9ES, and FR 
Y-9CS.
    OMB control number: 7100-0128.
    Frequency: Quarterly, semiannually, and annually.
    Respondents: Bank holding companies, savings and loan holding 
companies, securities holding companies, and U.S. intermediate holding 
companies (collectively, HCs).
    Estimated number of respondents: FR Y-9C (non-advanced approaches 
HCs with less than $5 billion in total assets): 155; FR Y-9C (non-
advanced approaches HCs with $5 billion or more in total assets: 188; 
FR Y-9C (advanced approaches HCs): 20; FR Y-9LP: 434; FR Y-9SP: 3,960; 
FR Y-9ES: 83; FR Y-9CS: 236.
    Estimated average hours per response:

Reporting

    FR Y-9C (non-advanced approaches HCs with less than $5 billion in 
total assets): 40.48 hours; FR Y-9C (non-advanced approaches HCs with 
$5 billion or more in total assets): 46.34 hours; FR Y-9C (advanced 
approaches HCs): 47.59 hours; FR Y-9LP: 5.27 hours; FR Y-9SP: 5.40 
hours; FR Y-9ES: 0.50 hours; FR Y-9CS: 0.50 hours.

Recordkeeping

    FR Y-9C (non-advanced approaches HCs with less than $5 billion in 
total assets), FR Y-9C (non-advanced approaches HCs with $5 billion or 
more in total assets), FR Y-9C (advanced approaches HCs), and FR Y-9LP: 
1.00 hours; FR Y-9SP, FR Y-9ES, and FR Y-9CS: 0.50 hours.
    Estimated annual burden hours:

Reporting

    FR Y-9C (non-advanced approaches HCs with less than $5 billion in 
total assets): 25,098 hours; FR Y-9C (non-advanced approaches HCs with 
$5 billion or more in total assets): 34,848 hours; FR Y-9C (advanced 
approaches HCs): 3,807 hours; FR Y-9LP: 9,149 hours; FR Y-9SP: 42,768; 
FR Y-9ES: 42 hours; FR Y-9CS: 472 hours.

Recordkeeping

    FR Y-9C (non-advanced approaches HCs with less than $5 billion in 
total assets): 620 hours; FR Y-9C (non-advanced approaches HCs with $5 
billion or more in total assets): 752 hours; FR Y-9C (advanced 
approaches HCs): 80 hours; FR Y-9LP: 1,736 hours; FR Y-9SP: 3,960 
hours; FR Y-9ES: 42 hours; FR Y-9CS: 472 hours.
    General description of report:
    The FR Y-9C consists of standardized financial statements similar 
to the Call Reports filed by commercial banks.\1\ The FR Y-9C collects 
consolidated data from HCs and is filed quarterly by top-tier HCs with 
total consolidated assets of $3 billion or more.\2\
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    \1\ The Call Reports consist of the FFIEC 051, as well as the 
Consolidated Reports of Condition and Income for a Bank with 
Domestic Offices Only (FFIEC 041) and the Consolidated Reports of 
Condition and Income for a Bank with Domestic and Foreign Offices 
(FFIEC 031).
    \2\ Under certain circumstances described in the FR Y-9C's 
General Instructions, HCs with assets under $3 billion may be 
required to file the FR Y-9C.
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    The FR Y-9LP, which collects parent company only financial data, 
must be submitted by each HC that files the FR Y-9C, as well as by each 
of its subsidiary HCs.\3\ The report consists of standardized financial 
statements.
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    \3\ A top-tier HC may submit a separate FR Y-9LP on behalf of 
each of its lower-tier HCs.
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    The FR Y-9SP is a parent company only financial statement filed

[[Page 50842]]

semiannually by HCs with total consolidated assets of less than $3 
billion. In a banking organization with total consolidated assets of 
less than $3 billion that has tiered HCs, each HC in the organization 
must submit, or have the top-tier HC submit on its behalf, a separate 
FR Y-9SP. This report is designed to obtain basic balance sheet and 
income data for the parent company, as well as data on its intangible 
assets and intercompany transactions.
    The FR Y-9ES is filed annually by each employee stock ownership 
plan (ESOP) that is also an HC. The report collects financial data on 
the ESOP's benefit plan activities. The FR Y-9ES consists of four 
schedules: A Statement of Changes in Net Assets Available for Benefits, 
a Statement of Net Assets Available for Benefits, Memoranda, and Notes 
to the Financial Statements.
    The FR Y-9CS is a free-form supplemental report that the Board may 
utilize to collect critical additional data deemed to be needed in an 
expedited manner from HCs. The data are used to assess and monitor 
emerging issues related to HCs, and the report is intended to 
supplement the other FR Y-9 reports. The data items included on the FR 
Y-9CS may change as needed.
    Proposed revisions:
FR Y-9C Revisions
    The Board has determined it no longer needs certain FR Y-9C items 
from financial institutions with less than $5 billion in total assets. 
The Board proposes to reduce burden on these financial institutions by 
adding new and revised reporting thresholds, reducing the reporting 
frequency for certain items and schedules from quarterly to 
semiannually or annually, and combining certain items. These revisions 
would be consistent with recent and proposed reporting changes to the 
Call Report. The proposed revisions are as follows:
New and Revised Reporting Thresholds
    The Board proposes to add a reporting threshold of $5 billion or 
more in total assets,\4\ below which HCs would not be required to 
complete the following data items:
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    \4\ The $5 billion asset threshold is based on total assets as 
reported for the previous June 30th report date.
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     Schedule HI, data item 1(e), Interest income from trading 
assets;
     Schedule HI, data item 2(c), Interest on trading 
liabilities and other borrowed money;
     Schedule HI, data item 2(d), Interest on subordinated 
notes and debentures and on mandatory convertible securities;
     Schedule HI, data item 5(c), Trading revenue;
     Schedule HI, data item 5(e), Venture capital revenue;
     Schedule HI, data item 5(g), Net securitization income;
     Schedule HI, Memo item 1, Net interest income on a fully 
taxable equivalent basis;
     Schedule HI, Memo item 2, Net income before applicable 
income taxes, and discontinued operations;
     Schedule HI, Memo items 8.a.(1) through 8.b.(2), 
Discontinued operations and applicable income tax effect;
     Schedule HI, Memo items 9(a) through 9(e), details 
pertaining to trading revenue;
     Schedule HI, Memo item 11, Credit losses on derivatives;
     Schedule HI, Memo items 12(a) through 12(c), detail 
pertaining to Income from the sale and servicing of mutual funds and 
annuities (in domestic offices);
     Schedule HI, Memo items 14(a) through 14(b)(1), details 
pertaining to net gains (losses) recognized in earnings on assets and 
liabilities that are reported at fair value under a fair value option;
     Schedule HI, Memo item 15, Stock-based employee 
compensation expense (net of tax effects) calculated for all awards 
under the fair value method;
     Schedule HI-B, Part I, data item 6, columns A and B, Loans 
to foreign governments and official institutions;
     Schedule HI-B, Part I, Memo item 2, columns A and B, Loans 
secured by real estate to non-U.S. addressees;
     Schedule HI-B, Part I, Memo item 3, Uncollectible retail 
credit card fees and finance charges reversed against income;
     Schedule HI-B, Part II, Memo item 1, Allocated transfer 
risk reserve;
     Schedule HI-B, Part II, Memo item 2, Separate valuation 
allowance for uncollectible retail credit card fees and finance 
charges;
     Schedule HI-B, Part II, Memo item 3, Amount of allowance 
for loan and lease losses attributable to retail credit card fees and 
finance charges;
     Schedule HI-B, Part II, Memo item 4, Amount of allowance 
for post-acquisition credit losses on purchased credit-impaired loans;
     Schedule HI-C, Disaggregated Data on the Allowance for 
Loan and Lease Losses
     Schedule HC-C, data item 10(a), Leases to individuals for 
household, family, and other personal expenditures;
     Schedule HC-C, data item 10(b), All other leases;
     Schedule HC-C, Memo item 3, Loans secured by real estate 
to non-U.S. addressees;
     Schedule HC-C, Memo item 4, Outstanding credit card fees 
and finance charges;
     Schedule HC-D, Trading Assets and Liabilities; \5\
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    \5\ Currently, Schedule HC-D must be completed by holding 
companies with total trading assets of $10 million or more in any of 
the four preceding calendar quarters. The Board proposes to modify 
the existing threshold by adding a reporting threshold of $5 billion 
or more in total assets.
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     Schedule HC-K, data item 4(a), Trading assets;
     Schedule HC-L, data items 1(b)(1), Unused consumer credit 
card lines, and 1(b)(2), Other unused credit card lines;
     Schedule HC-L, data item 1(d), Securities underwriting;
     Schedule HC-L, data item 2(a), Amount of financial standby 
letters of credit conveyed to others;
     Schedule HC-L, data item 3(a), Amount of performance 
standby letters of credit conveyed to others;
     Schedule HC-L, data items 7(a) through 7(d)(2)(b), 
pertaining to credit derivatives;
     Schedule HC-L, data items 11(a) through 14(b)(2), 
pertaining to derivatives positions;
     Schedule HC-M, Memo items 6(a)(1)(a)(1) though 6(d), 
pertaining to assets covered by loss-sharing agreements with the 
Federal Deposit Insurance Corporation (FDIC);
     Schedule HC-N, data items 12(a)(1)(a) through 12(f), 
pertaining to loans and leases which are covered by loss-sharing 
agreements with the FDIC;
     Schedule HC-N, Memo item 6, Fair value of derivative 
contract amounts carried as assets; \6\
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    \6\ Currently, this item must be completed by holding companies 
with total assets of $1 billion or more, or with $2 billion or more 
in par/notional amounts of off-balance-sheet derivative contracts. 
The Board proposes to increase the reporting threshold from $1 
billion to $5 billion or more in total assets.
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     Schedule HC-P, 1-4 Family Residential Mortgage Banking 
Activities in Domestic Offices;
     Schedule HC-Q, Assets and Liabilities Measured at Fair 
Value;
     Schedule HC-S, Servicing, Securitization, and Asset Sale 
Activities; and
     Schedule HC-V, Variable Interest Entities.
Reduced Reporting Frequencies
    For HCs with less than $5 billion in total assets, the Board 
proposes to reduce the reporting frequency from quarterly to semi-
annually (June and December reporting) for the following items:

[[Page 50843]]

     Schedule HI, Memo item 17, Other-than-temporary impairment 
losses on held-to-maturity and available-for-sale debt securities 
recognized in earnings;
     Schedule HI-C, Disaggregated Data on the Allowance for 
Credit Losses; \7\
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    \7\ In June 2016, the Financial Accounting Standard Board (FASB) 
issued Accounting Standard Update 2016-13 (ASU 2016-13), which 
introduced the current expected credit loss methodology for 
estimating allowances for credit losses. In response to ASU 2016-13, 
the Board added Schedule HI-C Part II, Disaggregated Data on 
Allowances for Credit Losses, to capture disaggregated data on 
allowances for credit losses and held-to-maturity securities from 
HCs that have adopted ASU 2016-13, effective, March 31, 2019. See 83 
FR 63870 (December 12, 2018). The Board is proposing to add a 
semiannual reporting frequency for Schedule HI-C, Part II for HCs 
with less than $5 billion in total assets. For HCs with less than $5 
billion in total assets that have not adopted ASU 2016-13, the Board 
proposes to collect the recorded investment instead of the amortized 
cost and collect the allowance balance on loans and leases held for 
investment, on Schedule HI-C Part II data items 1-6, on a semiannual 
basis. HCs with less than $5 billion in total assets that have 
adopted ASU 2016-13, should report the amortized cost and allowance 
balance for credit losses on held-to-maturity securities on Schedule 
HI-C, Part II data items 1-6 and the allowance balance on held-to-
maturity securities on data items 7-11, semi-annually. The proposed 
changes become effective September 2019, and are reportable starting 
in December 2019. The Board believes that semi-annual information on 
the composition of the allowance for credit losses in relation to 
the amortized cost for each loan category, and disaggregated 
information on HTM securities allowances, is sufficient to support 
the Board's analysis of the allowance and credit risk management. 
The data on allowance allocations by loan category, when reviewed in 
conjunction with the past due and nonaccrual data reported by loan 
category in Schedule HC-N, which will continue to be reported on a 
quarterly basis, assist the staff in assessing a HC's credit risk 
exposures and evaluating the appropriateness of the overall level of 
its Allowance for Loan and Lease Losses and its allocations by loan 
category. If changes in the quarterly past due and nonaccrual data 
by loan category at individual HCs in quarters when the 
disaggregated allowance data would not be reported in the FR Y-9C 
raise questions about the composition of the allowance, supervisory 
follow-up can be undertaken on a case-by-case basis.
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     Schedule HC-C, Memo items 1(a)(1) through 1(f)(3)(c) 
pertaining to loans restructured in troubled debt restructurings that 
are in compliance with their modified terms;
     Schedule HC-N, Memo items 1(a)(1) through 1(f)(3)(c) 
pertaining to loans restructured in troubled debt restructurings that 
are in compliance with their modified terms;
     Schedule HC-R, Part II, items 1 through 25, columns A 
through U; \8\
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    \8\ In these items, HCs currently report detailed information 
about the risk-weighting of various types of assets and other 
exposures under the Federal Reserve's' regulatory capital rules. HCs 
still would need to calculate risk-weighted assets, maintain 
appropriate documentation for this calculation, and report items 26 
through 31 of Part II, if applicable, on a quarterly basis. The 
Federal Reserve does not believe it is necessary for HCs to continue 
to provide the details of their risk-weighting allocations and 
calculations in Schedule HC-R, Part II, on a quarterly basis as the 
Federal Reserve can adequately review regulatory capital 
calculations for the first and third calendar quarters as part of 
on-site examinations or through other types of periodic monitoring, 
as necessary.
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     Schedule HC-R, Part II, Memorandum items 1 through 3, all 
subitems, columns A through G.\9\
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    \9\ HCs currently report detailed information in these items 
about derivative exposures that are elements of the risk-weighting 
process for these exposures. The Board does not believe it is 
necessary for a HC with less than $5 billion in total assets to 
continue to report these amounts on a quarterly basis. Generally, 
HCs with less than $5 billion in total assets do not have a 
significant amount of derivatives contracts, and the Board can 
review information about HCs' risk-weighting calculations for 
derivative exposures for the first and third calendar quarters, as 
necessary, as part of on-site examinations or through other periodic 
monitoring.
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    In addition, for HCs with less than $5 billion in total assets, the 
Board proposes to reduce the reporting frequency from quarterly to 
annually on a calendar year-to-date basis in the December report only 
for the following items:
     Schedule HI, Memo items 6(a) through 6(j), Other 
noninterest income;
     Schedule HI, Memo items 7(a) though 7(p), Other 
noninterest expense; and
     Schedule HI, Memo item 16, Noncash income from negative 
amortization on closed-end loans secured by 1-4 family residential 
properties.
Combined Data Items
    For HCs with less than $5 billion in total assets, the Board 
proposes to combine certain data items,\10\ all reportable on a 
quarterly basis, as follows:
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    \10\ HCs with less than $5 billion in total assets would report 
only the newly combined data items. HCs with $5 billion or more in 
total assets would continue to report only the currently existing 
data items.
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     Combine information currently reported in Schedule HI data 
items 5(d)(1) through 5(d)(5), pertaining to various fees and 
commissions on securities brokerage investments, investment banking and 
insurance, into new data items 5(d)(6) and 5(d)(7);
     Combine information currently reported in Schedule HI-B 
Part I, data items 4(a) and 4(b), columns A and B, pertaining to 
commercial and industrial loans, into new data item 4(c), columns A and 
B;
     Combine information currently reported in Schedule HI-B 
Part I, data items 8(a) and 8(b), columns A and B, pertaining to lease 
finance receivables, into new data item 8(c), columns A and B;
     Combine information currently reported in Schedule HC-B, 
data items 4(a)(1) through 4(a)(3), columns A through D, pertaining to 
residential pass-through securities, into new item 4(a)(4), columns A 
through D;
     Combine information currently reported in Schedule HC-C, 
data items 4(a) and 4(b), column A, pertaining to commercial and 
industrial loans, into new data item 4(c), column A;
     Combine information currently reported in Schedule HC-C, 
data items 9(b)(1) and 9(b)(2), column A and B, pertaining to loans for 
purchasing or carrying securities and all other loans, into new data 
item 9(b)(3), columns A and B;
     Combine information currently reported in Schedule HC-C, 
data items 10(a) and 10(b), column A, pertaining to lease financing 
receivables (net of unearned income), into new data item 10(c), column 
A;
     Combine information currently reported in Schedule HC-C, 
Memo items 1(e)(1) and 1(e)(2), pertaining to commercial and industrial 
loans, into new memo item (1)(e)(3);
     Combine information currently reported in Schedule HC-C, 
Memo items 12(a) though 12(d), pertaining to loans (not subject to the 
requirements of FASB ASC 310-30 (former AICPA Statement of Position 03-
3)) and leases held for investment that are acquired in business 
combinations with acquisition dates in the current calendar year, into 
new memo item 12(e);
     Combine information currently reported in Schedule HC-N, 
data items 8(a) and 8(b), columns A, B and C, pertaining to leases 
financing receivables, into new data item 8(c), columns A, B and C; and
     Combine information currently reported in Schedule HC-N, 
Memo items 1(e)(1) and 1(e)(2), columns A, B and C, pertaining to 
commercial and industrial loans, into new memo item 1(e)(3), columns A, 
B and C.
Recordkeeping Requirements
    The instructions to the FR Y-9C, FR Y-9LP, FR Y-9SP, and FR Y-9ES 
state that respondents must maintain in their files a manually signed 
and attested printed copy of the data submitted on the form, and should 
retain workpapers and other records used in the preparation of those 
reports. The Board is proposing to revise the FR Y-9 information 
collection to account for these recordkeeping provisions, which are not 
currently accounted for.
    Legal authorization and confidentiality: The Board has the 
authority to impose the reporting and recordkeeping requirements 
associated with the Y-9 family of reports on bank holding companies 
(``BHCs'') pursuant

[[Page 50844]]

to section 5 of the Bank Holding Company Act (``BHC Act''), (12 U.S.C. 
1844); on savings and loan holding companies pursuant to section 
10(b)(2) and (3) of the Home Owners' Loan Act, (12 U.S.C. 1467a(b)(2) 
and (3)), as amended by sections 369(8) and 604(h)(2) of the Dodd-Frank 
Wall Street and Consumer Protection Act (``Dodd-Frank Act''); on U.S. 
intermediate holding companies (``U.S. IHCs'') pursuant to section 5 of 
the BHC Act, (12 U.S.C 1844), as well as pursuant to sections 102(a)(1) 
and 165 of the Dodd-Frank Act, (12 U.S.C. 511(a)(1) and 5365)\11\; and 
on securities holding companies pursuant to section 618 of the Dodd-
Frank Act, (12 U.S.C. 1850a(c)(1)(A)). The obligation to submit the FR 
Y-9 series of reports, and the recordkeeping requirements set forth in 
the respective instructions to each report, are mandatory.
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    \11\ Section 165(b)(2) of Title I of the Dodd-Frank Act, (12 
U.S.C. 5365(b)(2)), refers to ``foreign-based bank holding 
company.'' Section 102(a)(1) of the Dodd-Frank Act, (12 U.S.C. 
5311(a)(1)), defines ``bank holding company'' for purposes of Title 
I of the Dodd-Frank Act to include foreign banking organizations 
that are treated as bank holding companies under section 8(a) of the 
International Banking Act, (12 U.S.C. 3106(a)). The Board has 
required, pursuant to section 165(b)(1)(B)(iv) of the Dodd-Frank 
Act, (12 U.S.C. 5365(b)(1)(B)(iv)), certain foreign banking 
organizations subject to section 165 of the Dodd-Frank Act to form 
U.S. intermediate holding companies. Accordingly, the parent 
foreign-based organization of a U.S. IHC is treated as a BHC for 
purposes of the BHC Act and section 165 of the Dodd-Frank Act. 
Because Section 5(c) of the BHC Act authorizes the Board to require 
reports from subsidiaries of BHCs, section 5(c) provides additional 
authority to require U.S. IHCs to report the information contained 
in the FR Y-9 series of reports.
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    With respect to the FR Y-9C report, Schedule HI's item 7(g) ``FDIC 
deposit insurance assessments,'' Schedule HC-P's item 7(a) 
``Representation and warranty reserves for 1-4 family residential 
mortgage loans sold to U.S. government agencies and government 
sponsored agencies,'' and Schedule HC-P's item 7(b) ``Representation 
and warranty reserves for 1-4 family residential mortgage loans sold to 
other parties'' are considered confidential commercial and financial 
information. Such treatment may be appropriate under exemption 4 of the 
Freedom of Information Act (``FOIA''), (5 U.S.C. 552(b)(4)), because 
these data items reflect commercial and financial information that is 
both customarily and actually treated as private by the submitter, and 
which the Board has previously assured submitters will be treated as 
confidential. It also appears that disclosing these data items may 
reveal confidential examination and supervisory information, and in 
such instances, this information may also be withheld pursuant to 
exemption 8 of the FOIA, (5 U.S.C. 552(b)(8)), which protects 
information related to the supervision or examination of a regulated 
financial institution.
    In addition, for both the FR Y-9C report and the FR Y-9SP report, 
Schedule HC's memorandum item 2.b., the name and email address of the 
external auditing firm's engagement partner, is considered confidential 
commercial information and protected by exemption 4 of the FOIA, (5 
U.S.C. 552(b)(4)), if the identity of the engagement partner is treated 
as private information by HCs. The Board has assured respondents that 
this information will be treated as confidential since the collection 
of this data item was proposed in 2004.
    Aside from the data items described above, the remaining data items 
on the FR Y-9C report and the FR Y-9SP report are generally not 
accorded confidential treatment. The data items collected on FR Y-9LP, 
FR Y-9ES, and FR Y-9CS\12\ reports, are also generally not accorded 
confidential treatment. As provided in the Board's Rules Regarding 
Availability of Information (12 CFR part 261), however, a respondent 
may request confidential treatment for any data items the respondent 
believes should be withheld pursuant to a FOIA exemption. The Board 
will review any such request to determine if confidential treatment is 
appropriate, and will inform the respondent if the request for 
confidential treatment has been denied.
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    \12\ The FR Y-9CS is a supplemental report that may be utilized 
by the Board to collect additional information that is needed in an 
expedited manner from HCs. The information collected on this 
supplemental report is subject to change as needed. Generally, the 
FR Y-9CS report is treated as public. However, where appropriate, 
data items on the FR Y-9CS report may be withheld under exemptions 4 
and/or 8 of the Freedom of Information Act, (5 U.S.C. 552(b)(4) and 
(8)).
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    To the extent the instructions to the FR Y-9C, FR Y-9LP, FR Y-9SP, 
and FR Y-9ES reports each respectively direct the financial institution 
to retain the workpapers and related materials used in preparation of 
each report, such material would only be obtained by the Board as part 
of the examination or supervision of the financial institution. 
Accordingly, such information may be considered confidential pursuant 
to exemption 8 of the FOIA. (5 U.S.C. 552(b)(8)). In addition, the 
workpapers and related materials may also be protected by exemption 4 
of the FOIA, to the extent such financial information is treated as 
confidential by the respondent. (5 U.S.C. 552(b)(4)).
    Consultation outside the agency: The Board consulted with the FDIC 
and the Office of the Comptroller of the Currency in regard to these 
proposed revisions.

    Board of Governors of the Federal Reserve System, September 23, 
2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-20928 Filed 9-25-19; 8:45 am]
 BILLING CODE 6210-01-P