[Federal Register Volume 86, Number 109 (Wednesday, June 9, 2021)]
[Notices]
[Pages 30602-30603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12086]


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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 extend for three years, without revision, the 
Recordkeeping Provisions Associated with Stress Testing Guidance (FR 
4202; OMB No. 7100-0348). The Board has extended the FR 4202 without 
revision to ensure compliance with the Paperwork Reduction Act (PRA). 
However, whether and how any changes should be made to the guidance in 
light of recent amendments made by the Board to its stress testing 
rules is under consideration. The Board will publish any proposed 
changes to the FR 4202 via a separate notice for comment.

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.
    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.

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. Board-
approved collections of information are incorporated into the official 
OMB inventory of currently approved collections of information. The OMB 
inventory, as well as copies of the PRA Submission, supporting 
statements, and approved collection of information instrument(s) are 
available at https://www.reginfo.gov/public/do/PRAMain. These documents 
are also available on the Federal Reserve 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 above.

Final Approval Under OMB Delegated Authority of the Extension for Three 
Years, Without Revision, of the Following Information Collection

    Report title: Recordkeeping Provisions Associated with Stress 
Testing Guidance.
    Agency form number: FR 4202.
    OMB control number: 7100-0348.
    Frequency: As needed.
    Respondents: Banking organizations.
    Estimated number of respondents: 100.
    Estimated average hours per response: 180.
    Estimated annual burden hours: 18,000.
    General description of report: On May 17, 2012, the Board published 
the Supervisory Guidance on Stress Testing for Banking Organizations 
With More Than $10 Billion in Total Consolidated Assets (Stress Testing 
Guidance) in the Federal Register.\1\ The Stress Testing Guidance 
outlines high-level principles for stress testing practices applicable 
to all Board-supervised banking organizations with more than $10 
billion in total consolidated assets.\2\
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    \1\ 77 FR 29458. The Stress Testing Guidance was issued jointly 
by the Board, the Federal Deposit Insurance Corporation, and the 
Office of the Comptroller of the Currency.
    \2\ Board-supervised banking organizations include state member 
banks, bank holding companies, savings and loan holding companies, 
and all other institutions for which the Board is the primary 
federal supervisor.
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    The Stress Testing Guidance recommends that banking organizations 
(i) have a stress testing framework that includes clearly defined 
objectives, well-designed scenarios tailored to the banking 
organization's business and risks, well-documented assumptions, 
conceptually sound methodologies to assess potential impact on the 
banking organization's financial condition, informative management 
reports, and recommended actions based on stress test results; and (ii) 
have policies and procedures for a stress testing framework. These 
recordkeeping activities are collections of information under the PRA.
    An organization should have written policies, approved and annually 
reviewed by the board, that direct and govern the implementation of the 
stress testing framework in a comprehensive manner. Policies, along 
with procedures to implement them, should:
     Describe the overall purpose of stress testing activities;
     articulate consistent and sufficiently rigorous stress 
testing practices across the entire organization;
     indicate stress testing roles and responsibilities, 
including controls over external resources used for any part of stress 
testing (such as vendors and data providers);
     describe the frequency and priority with which stress 
testing activities should be conducted;
     indicate how stress test results are used and by whom, and
     be reviewed and updated as necessary to ensure that stress 
testing practices remain appropriate and keep up to date with changes 
in market conditions, organization products and strategies, 
organization exposures and activities, the organization's established 
risk appetite, and industry stress testing practices.
    Legal authorization and confidentiality: This voluntary information 
collection is authorized pursuant to section 11 of the Federal Reserve 
Act, 12 U.S.C. 248 (state member banks); sections 25 and 25A of

[[Page 30603]]

the Federal Reserve Act, 12 U.S.C. 602 and 625 (Edge and Agreement 
corporations); section 5 of the Bank Holding Company Act of 1956, 12 
U.S.C. 1844 (bank holding companies) and, in conjunction with section 8 
of the International Banking Act, 12 U.S.C. 3106 (foreign banking 
organizations); section 7(c) of the International Banking Act of 1978, 
12 U.S.C. 3105(c) (branches and agencies of foreign banks); section 10 
of the Home Owners' Loan Act, 12 U.S.C. 1467a, (savings and loan 
holding companies), and section 165(i) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act, 12 U.S.C. 5365 (nonbank financial 
companies supervised by the Board).
    Because the collections of information associated with the FR 4202 
do not involve the submission of information to the Board, no issues of 
confidentiality would normally arise. To the extent that the Board 
collects such information during an examination of the banking 
organization, confidential treatment may be afforded to that 
information under exemption 8 of the Freedom of Information Act (FOIA) 
(5 U.S.C. 552(b)(8)), which protects information collected as part of 
the Board's supervisory process. Additionally, individual respondents 
may request confidential treatment of information pursuant to exemption 
4 of the FOIA (5 U.S.C. 552(b)(4)), which protects ``trade secrets and 
commercial or financial information obtained from a person [that is] 
privileged or confidential.'' The Board will treat such information as 
confidential to the extent permitted by law, including the FOIA.
    Current actions: On March 8, 2021, the Board published an initial 
notice in the Federal Register (86 FR 13378) requesting public comment 
for 60 days on the extension, without revision, of the FR 4202. The 
comment period for this notice expired on May 7, 2021. The Board did 
not receive any comments. The Board will adopt the extension, without 
revision, of the FR 4202 as originally proposed.

    Board of Governors of the Federal Reserve System, June 4, 2021.
Ann Misback,
Secretary of the Board.
[FR Doc. 2021-12086 Filed 6-8-21; 8:45 am]
BILLING CODE 6210-01-P