[Federal Register Volume 87, Number 90 (Tuesday, May 10, 2022)]
[Notices]
[Pages 28009-28010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09979]


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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 
Report of Institution-to-Aggregate Granular Data on Assets and 
Liabilities on an Immediate Counterparty Basis (FR 2510; OMB No. 7100-
0376).

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 for the Federal 
Reserve Board, 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 Paperwork Reduction Act (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: Report of Institution-to-Aggregate Granular Data on 
Assets and Liabilities on an Immediate Counterparty Basis.
    Agency form number: FR 2510.
    OMB control number: 7100-0376.
    Frequency: Quarterly.
    Respondents: Any bank holding company (BHC) that is organized under 
the laws of the United States or any U.S. state and that is identified 
as a global systemically important bank (G-SIB) holding company under 
the Board's Regulation Q.
    Estimated number of respondents: 8.
    Estimated average hours per response: 568.
    Estimated annual burden hours: 18,176.
    General description of report: The FR 2510 collects granular 
exposure data on the assets, liabilities, and off-balance sheet 
holdings of G-SIBs, providing breakdowns by country, instrument, 
currency, maturity, sector, and other factors, and also collects 
country exposure data on an immediate counterparty basis and detailed 
information on firms' derivatives exposures. The information collected 
by the FR 2510 supports the Board's supervision of U.S. G-SIBs by 
allowing for a more complete balance sheet analysis of these firms and 
allows the Board to more closely monitor the systemic impacts of such 
firms' activities and investments.
    Legal authorization and confidentiality: The FR 2510 is authorized 
by section 5 of the Bank Holding Company Act (BHC Act). Section 5 of 
the BHC Act authorizes the Board to require a bank holding company and 
any subsidiary of such company to submit reports under oath to keep the 
Board informed as to its financial condition, systems for monitoring 
and controlling financial and operating risks, and transactions with 
depository institution subsidiaries of the bank holding company.\1\ The 
FR 2510 is mandatory for U.S. G-SIBs.
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    \1\ 12 U.S.C. 1844(c)(1)(A).
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    The information collected in the FR 2510 is collected as part of 
the Board's supervisory process and is therefore considered 
confidential pursuant to exemption 8 of the Freedom of Information Act 
(FOIA), which protects information contained in ``examination, 
operating, or condition reports'' obtained in the bank supervisory 
process. In addition, individual respondents may request that 
information be kept confidential pursuant to exemption 4 of the FOIA, 
which protects nonpublic commercial or financial information, which is 
both customarily and actually treated as private by the respondent. 
Determinations of confidentiality based on exemption 4 of the FOIA 
would be made on a case-by-case basis.
    Current actions: On October 18, 2021, the Board published a notice 
in the Federal Register (86 FR 57672) requesting public comment for 60 
days on the extension, without revision, of the Report of Institution-
to-Aggregate Granular Data on Assets and Liabilities on an Immediate 
Counterparty Basis. The comment period for this notice expired on 
December 17, 2021. The Board received one comment.

Detailed Discussion of Public Comments

    First, the commenter identified certain reporting differences 
between the Country Exposure Report (FFIEC 009; OMB No. 7100-0035) and 
the FR 2510 and argued that reporting of similar items between the two 
reports should be more aligned in order to minimize reporting burden. 
Specifically, the commenter highlighted the difference in remaining 
maturity on debt securities held for trading between the FFIEC 009 and 
the FR 2510. On the FFIEC 009, only a single bucket containing 
maturities of one year or less is required, whereas the FR 2510 
requires four maturity buckets across the entire term structure. While 
the Board acknowledges the additional burden in reporting all maturity 
buckets in the FR 2510, this was part of the original design of the 
report and was meant to ``provide significantly more detail regarding 
the balance sheet and derivatives exposures of U.S. G-SIBs.'' \2\ This 
original design was part of an internationally agreed upon process to 
facilitate the aggregation and analysis of consistent and comparable 
data from G-SIBs globally. In addition, the FR 2510 collects a more 
fulsome set of remaining maturity information to better understand the 
credit market and liquidity profiles of U.S. G-SIBs, which may have 
systemic implications at the individual institution level or the 
aggregate level. The FFIEC 009, on the other hand, collects overall 
country risk exposures for banks of all sizes and such detail is not 
needed for smaller institutions.
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    \2\ 83 FR 42680 (August 27, 2018).

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[[Page 28010]]

    The commenter also noted that the FR 2510 instructions allow 
respondents to use either the final contractual maturity or the next 
repricing date, where applicable, for reporting the remaining maturity 
of debt securities. In contrast, the FFIEC 009 instructions do not 
offer firms this option and require the use of final contractual 
maturity. The Board recognizes that on the FR 2510, firms are allowed 
to report next repricing date; however, firms are not required to do 
so. FR 2510 respondents are free to report remaining maturity of debt 
securities data on the same basis as the FFIEC 009. Also, the option to 
use final contractual maturity or next repricing date is comparable to 
how remaining maturity of debt securities is reported on the 
Consolidated Financial Statements for Holding Companies (FR Y-9C; OMB 
No. 7100-0128), specifically on the Securities Schedule HC-B, line 
items M2 and M2(a)-M2(c).
    Additionally, the commenter identified an inconsistency between the 
FR 2510 and the FFIEC 009 with respect to the sector utilized for the 
reporting of central bank exposures. On the FR 2510, claims on central 
banks are reported in the ``Unallocated'' sector, which is designated 
for positions for which the sector of the counterparty is unknown or 
the sector information does not need to be reported. However, the 
reporting instructions to the FFIEC 009 require respondents to include 
central banks in the ``Public'' sector, which includes government 
departments and agencies. While the Board acknowledges that this 
difference can cause issues with comparability and can be burdensome 
for the reporting institutions, this distinction was intentional, as to 
avoid lumping claims on central banks together with claims banks have 
on governments such as sovereign bond and municipal security holdings.
    Second, the commenter highlighted a concern with the inconsistency 
of reporting debt securities on the FR 2510 and the FR Y-9C. The FR 
2510 requires debt securities to be broken out into the following three 
categories: Asset-backed securities (ABS), Other secured debt 
securities, and unsecured debt securities. This segmentation is not the 
same as found on the FR Y-9C, which requires respondents to break down 
debt securities into the following six groupings: U.S. Treasury 
securities, U.S. government agency and sponsored agency obligations, 
Securities issued by states and political subdivisions in the U.S., 
Mortgage-back securities (MBS), Asset-backed securities and structured 
financial products, and Other debt securities. The commenter pointed 
out that this discrepancy requires firms to look through and track 
features of securities that are not captured on other reports in great 
detail, creating significant burden. The commenter requested that the 
FR 2510 be modified to adopt the debt securities classification from 
the FR Y-9C. While the Board acknowledges the burden entailed in having 
two different classifications for the same debt securities, the 
internationally-agreed template for G-SIBs includes a different and 
less detailed breakdown than that which U.S. regulators have specified 
in various regulatory reports including the FR Y-9C, which is 
aggregated around several classes of securities that are idiosyncratic 
to and proportionately more important in U.S. debt markets.
    Finally, the commenter raised several process issues regarding 
rounding differences between the data reported on the FR 2510 and the 
FFIEC 009, synchronizing proposed future changes to these reports, and 
providing adequate lead time for any proposed revisions to the FR 
2510.\3\ With respect to the rounding differences, the Federal Reserve 
regularly reviews and updates operational controls associated with 
Reporting Central outside of the clearance process and will review this 
recommendation accordingly. To the degree that there are future 
proposed changes to the FR 2510 or the FFIEC 009, which apply to both 
reports, the Board will strive to make these changes on similar 
timelines and provide adequate lead time for such changes. The Board 
does not plan at this time to propose changes to the FR 2510 that are 
consistent with the current FFIEC 009 proposal.\4\ Those proposed 
changes to the FFIEC 009 are not applicable to the FR 2510.
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    \3\ Specifically, the commenter asked for a delayed effective 
date of any changes made to the FR 2510. This comment is not 
applicable to the current extension of the FR 2510, as no revisions 
were proposed or are being adopted.
    \4\ See 87 FR 3170 (January 20, 2022).
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    The Board believes that the differences in reporting between the FR 
2510, the FFIEC 009, and the FR Y-9C are warranted for the reasons 
described above. Therefore, the Board will not adopt any revisions to 
the FR 2510 as part of the extension of this collection.

    Board of Governors of the Federal Reserve System, May 4, 2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-09979 Filed 5-9-22; 8:45 am]
BILLING CODE 6210-01-P