[Federal Register Volume 84, Number 190 (Tuesday, October 1, 2019)]
[Notices]
[Pages 52174-52176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21211]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Revision of an Approved
Information Collection; Comment Request; Company-Run Annual Stress Test
Reporting Template and Documentation for Covered Institutions With
Total Consolidated Assets of $250 Billion or More Under the Dodd-Frank
Wall Street Reform and Consumer Protection Act
AGENCY: Office of the Comptroller of the Currency, Treasury (OCC).
ACTION: Notice and request for comment.
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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites the general public and other federal
agencies to take this opportunity to comment on a continuing
information collection as required by the Paperwork Reduction Act of
1995 (PRA).
In accordance with the requirements of the PRA, the OCC may not
conduct or sponsor, and the respondent is not required to respond to,
an information collection unless it displays a currently valid Office
of Management and Budget (OMB) control number.
The OCC is soliciting comment concerning a revision to a regulatory
reporting requirement for national banks and federal savings
associations titled, ``Company-Run Annual Stress Test Reporting
Template and Documentation for Covered Institutions with Total
Consolidated Assets of $250 Billion or More under the Dodd-Frank Wall
Street Reform and Consumer Protection Act.''
DATES: Comments must be received by December 2, 2019.
ADDRESSES: Commenters are encouraged to submit comments by email, if
possible. You may submit comments by any of the following methods:
Email: [email protected].
Mail: Chief Counsel's Office, Attention: Comment
Processing, 1557-0319, Office of the Comptroller of the Currency, 400
7th Street SW, Suite 3E-218, Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``1557-0319'' in your comment. In general, the OCC will publish
comments on www.reginfo.gov without change, including any business or
personal information provided, such as name and address information,
email addresses, or phone numbers. Comments received, including
attachments and other supporting materials, are part of the public
record and subject to public disclosure. Do not include any information
in your comment or supporting materials that you consider confidential
or inappropriate for public disclosure.
You may review comments and other related materials that pertain to
this information collection beginning on the date of publication of the
second notice for this collection \1\ by any of the following methods:
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\1\ Following the close of this notice's 60-day comment period,
the OCC will publish a second notice with a 30-day comment period.
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Viewing Comments Electronically: Go to www.reginfo.gov.
Click on the ``Information Collection Review'' tab. Underneath the
``Currently under Review'' section heading, from the drop-down menu,
select ``Department of Treasury'' and then click ``submit.'' This
information collection can be located by searching by OMB control
number ``1557-0319'' or ``Company-Run Annual Stress Test Reporting
Template and Documentation for Covered Institutions with Total
Consolidated Assets of $100 Billion or More under the Dodd-Frank Wall
Street Reform and Consumer Protection Act.'' Upon finding the
appropriate information collection, click on the related ``ICR
Reference Number.'' On the next screen, select ``View Supporting
Statement and Other Documents'' and then click on the link to any
comment listed at the bottom of the screen.
For assistance in navigating www.reginfo.gov, please
contact the Regulatory Information Service Center at (202) 482-7340.
Viewing Comments Personally: You may personally inspect
comments at the
[[Page 52175]]
OCC, 400 7th Street SW, Washington, DC. For security reasons, the OCC
requires that visitors make an appointment to inspect comments. You may
do so by calling (202) 649-6700 or, for persons who are deaf or hearing
impaired, TTY, (202) 649-5597. Upon arrival, visitors will be required
to present valid government-issued photo identification and submit to
security screening in order to inspect comments.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, (202) 649-5490 or,
for persons who are deaf or hearing impaired, TTY, (202) 649-5597,
Chief Counsel's Office, Office of the Comptroller of the Currency, 400
7th St. SW, Washington, DC 20219. In addition, copies of the templates
referenced in this notice can be found on the OCC's website under News
and Issuances (http://www.occ.treas.gov/tools-forms/forms/bank-operations/stress-test-reporting.html).
SUPPLEMENTARY INFORMATION: The OCC is requesting comment on the
following revision to an approved information collection:
Title: Company-Run Annual Stress Test Reporting Template and
Documentation for Covered Institutions with Total Consolidated Assets
of $250 Billion or More under the Dodd-Frank Wall Street Reform and
Consumer Protection Act.
OMB Control No.: 1557-0319.
Description: Section 165(i)(2) of the Dodd-Frank Wall Street Reform
and Consumer Protection Act \2\ (Dodd-Frank Act) requires certain
financial companies, including national banks and federal savings
associations, to conduct annual stress tests \3\ and requires the
primary financial regulatory agency \4\ of those financial companies to
issue regulations implementing the stress test requirements.\5\ Under
section 165(i)(2), a covered institution is required to submit to the
Board of Governors of the Federal Reserve System (Board) and to its
primary financial regulatory agency a report at such time, in such
form, and containing such information as the primary financial
regulatory agency may require.\6\
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\2\ Public Law 111-203, 124 Stat. 1376, July 2010.
\3\ 12 U.S.C. 5365(i)(2)(A).
\4\ 12 U.S.C. 5301(12).
\5\ 12 U.S.C. 5365(i)(2)(C).
\6\ 12 U.S.C. 5365(i)(2)(B).
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On October 9, 2012, the OCC published in the Federal Register a
final rule implementing the section 165(i)(2) annual stress test
requirement.\7\ This rule describes the reports and information
collections required to meet the reporting requirements under section
165(i)(2). These information collections will be given confidential
treatment (5 U.S.C. 552(b)(4)) to the extent permitted by law.
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\7\ 77 FR 61238 (October 9, 2012) (codified at 12 CFR part 46).
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The Economic Growth, Regulatory Relief, and Consumer Protection Act
(EGRRCPA), enacted on May 24, 2018, amends certain aspects of the
company-run stress testing requirement in section 165(i)(2) of the
Dodd-Frank Act.\8\ Specifically, section 401 of EGRRCPA raises the
minimum asset threshold for financial companies covered by the company-
run stress testing requirement from $10 billion to $250 billion in
total consolidated assets; revises the requirement that financial
companies conduct stress tests on an ``annual'' basis and instead
requires them to be ``periodic''; and no longer requires the OCC to
provide an ``adverse'' stress-testing scenario, thus reducing the
number of required stress test scenarios from three to two. The
amendments made by section 401 of EGRRCPA applicable to depository
institutions are effective on November 24, 2019.
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\8\ Public Law 115-174, 132 Stat. 1296-1368 (2018).
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The OCC, in coordination with the Board and Federal Deposit
Insurance Corporation, is in the process of revising its stress testing
regulation to incorporate EGRRPCA's amendments. On February 12, 2019,
consistent with section 401 of EGRRCPA, the OCC published a notice of
proposed rulemaking (proposed rule or proposal) in the Federal Register
to amend the stress testing rule.\9\ The proposed rule would have
revised the minimum threshold for banks to conduct stress tests from
$10 billion to $250 billion, revised the frequency by which certain
banks would be required to conduct stress tests from annually to
biennially, and reduced the number of required stress testing scenarios
from three to two by eliminating the requirement for an adverse
scenario. The proposed rule would also have made certain additional
technical and facilitating changes to the stress testing rule.
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\9\ 84 FR 3345 (February 12, 2019).
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In 2012, the OCC first implemented the reporting templates
referenced in the final rule. See 77 FR 49485 (August 16, 2012) and 77
FR 66663 (November 6, 2012).
The OCC intends to use the data collected to assess the
reasonableness of the stress test results of covered institutions and
to provide forward-looking information to the OCC regarding a covered
institution's capital adequacy. The OCC also may use the results of the
stress tests to determine whether additional analytical techniques and
exercises could be appropriate to identify, measure, and monitor risks
at the covered institution. The stress test results are expected to
support ongoing improvement in a covered institution's stress testing
practices with respect to its internal assessments of capital adequacy
and overall capital planning.
The OCC recognizes that many covered institutions with total
consolidated assets of $250 billion or more are required to submit
reports using Comprehensive Capital Analysis and Review (CCAR)
reporting form FR Y-14A.\10\ The OCC also recognizes the Board has
proposed to modify the FR Y-14A and, to the extent practical, the OCC
will keep its reporting requirements consistent with the Board's FR Y-
14A in order to minimize burden on covered institutions.\11\ Therefore,
the OCC is proposing to revise its reporting requirements to mirror the
Board's proposed FR Y-14A for covered institutions with total
consolidated assets of $250 billion or more. The proposed changes
include updates to various schedules to reflect the current expected
credit loss (CECL) accounting methodology. These changes would
accommodate covered institutions that have adopted CECL by the
reporting date and those that have not yet adopted CECL by the
reporting date.\12\ The proposed changes also include a collection of
supplemental CECL information. The proposed changes also include items
not related to CECL adoption. The purpose of these changes is to keep
the reporting forms in line with changes in the Consolidated Reports of
Condition and Income (Call Report) as well as to provide further
clarity or alignment of the instructions with the XML reporting files.
There are also changes that would require information to be reported at
a different level of granularity.
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\10\ http://www.federalreserve.gov/reportforms.
\11\ 84 FR 37292 (July 31, 2019); 84 FR 37285 (July 31, 2019).
\12\ As discussed in the Supplementary Information section of
the OCC's final rule implementing CECL, an institution would reflect
CECL in its stress testing reports in the year it adopts CECL. See
84 FR 4222 (February 14, 2019).
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Type of Review: Revision.
Affected Public: Businesses or other for-profit.
Estimated Number of Respondents: 8.
Estimated Total Annual Burden: 5,088 hours.
The OCC believes that the systems covered institutions use to
prepare the FR Y-14 reporting templates to submit to the Board will
also be used to prepare
[[Page 52176]]
the reporting templates described in this notice. Comments submitted in
response to this notice will be summarized and included in the request
for OMB approval. All comments will become a matter of public record.
Comments are invited on: (a) Whether the collection of information is
necessary for the proper performance of the functions of the OCC,
including whether the information has practical utility; (b) The
accuracy of the OCC's estimate of the burden of the collection of
information; (c) Ways to enhance the quality, utility, and clarity of
the information to be collected; (d) Ways to minimize the burden of the
collection on respondents, including through the use of automated
collection techniques or other forms of information technology; and (e)
Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Dated: September 24, 2019.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2019-21211 Filed 9-30-19; 8:45 am]
BILLING CODE 4810-33-P