[Federal Register Volume 87, Number 213 (Friday, November 4, 2022)]
[Notices]
[Pages 66701-66704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24028]


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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 Reporting, Recordkeeping, and Disclosure Requirements Associated 
with Regulation Q (FR Q; OMB No. 7100-0313).

DATES: Comments must be submitted on or before January 3, 2023.

[[Page 66702]]


ADDRESSES: You may submit comments, identified by FR Q, 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 
number or FR number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Federal Reserve Board of Governors, Attn: Ann E. 
Misback, Secretary of the Board, Mailstop M-4775, 2001 C St. 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 confidential 
business information, identifying information, or contact information. 
Public comments may also be viewed electronically or in paper in Room 
M-4365A, 2001 C St. NW, Washington, DC 20551, 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 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.

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, [email protected], (202) 
452-3884.

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. 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.
    During the comment period for this proposal, a copy of the proposed 
PRA OMB submission, including the draft reporting form and 
instructions, supporting statement, and other documentation, will 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 above. Final 
versions of these documents will be made available at https://www.reginfo.gov/public/do/PRAMain, if approved.

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

    Collection title: Reporting, Recordkeeping, and Disclosure 
Requirements Associated with Regulation Q.
    Collection identifier: FR Q.
    OMB control number: 7100-0313.
    Frequency: Annual, quarterly.
    Respondents: State member banks (SMBs), certain bank holding 
companies (BHCs), U.S. intermediate holding companies (IHCs), and 
certain covered savings and loan holding companies (SLHCs) \1\ 
(collectively, Board-regulated institutions).
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    \1\ The Board's capital rule generally does not apply to BHCs or 
covered SLHCs that meet the requirements of the Small Bank Holding 
Company and Savings and Loan Holding Company Policy Statement, 12 
CFR part 225, Appendix C. For the definition of ``Covered savings 
and loan holding company,'' see 12 CFR 217.2.
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    Estimated number of respondents:

Minimum Capital Ratios
    Recordkeeping (Ongoing)--1,055.
Standardized Approach
    Reporting (Ongoing)--1.
    Recordkeeping (Initial Setup)--1.
    Recordkeeping (Ongoing)--1,055.
    Disclosure (Initial Setup)--1.
    Disclosure (Ongoing)--38.
Advanced Approach
    Reporting (Initial Setup)--1.
    Reporting (Ongoing)--21.
    Recordkeeping (Initial Setup)--1.
    Recordkeeping (Ongoing)--21.
    Recordkeeping (Ongoing quarterly)--21.
    Disclosure (Initial setup)--1.
    Disclosure (Ongoing)--21.
    Disclosure (Ongoing quarterly)--21.
    Disclosure (Ongoing quarterly Table 13)--27.

    Estimated average hours per response:

Minimum Capital Ratios
Recordkeeping (Ongoing)--16.

Standardized Approach
Reporting (Ongoing)--1.
Recordkeeping (Initial Setup)--122.
Recordkeeping (Ongoing)--20.
Disclosure (Initial Setup)--226.25.
Disclosure (Ongoing)--131.25.

Advanced Approach
Reporting (Initial Setup)--161.
Reporting (Ongoing)--111.77.
Recordkeeping (Initial Setup)--299.
Recordkeeping (Ongoing)--429.
Recordkeeping (Ongoing quarterly)--20.
Disclosure (Initial setup)--328.
Disclosure (Ongoing)--5.78.
Disclosure (Ongoing quarterly)--41.5.
Disclosure (Ongoing quarterly Table 13)--5.

    Estimated annual burden hours: Initial setup--1,136; Ongoing--
75,114.
    General description of collection: The Board's Regulation Q--
Capital Adequacy of Bank Holding Companies, Savings and Loan Holding 
Companies, and State Member Banks (12 CFR part 217) sets forth the 
capital adequacy requirements for Board-regulated institutions.
    The reporting, recordkeeping, and disclosure requirements included 
in the FR Q information collection provide the

[[Page 66703]]

Board and other stakeholders, including market participants, with 
information regarding the interaction between firms and the regulatory 
capital framework. Specifically, the reporting and recordkeeping 
requirements allow the Board to verify that firms are appropriately 
implementing the capital framework; they also provide the Board with 
information necessary for monitoring firms participating in the 
advanced approaches framework. The disclosure requirements are intended 
to support market discipline by providing information regarding banking 
organizations' activities, overall risk profiles, and risk management 
policies. Together, these requirements help to ensure the safety and 
soundness of the financial system by facilitating the identification of 
problems at firms and ensuring that firms have implemented any 
corrective actions imposed by the Board, as well as by allowing 
stakeholders to make meaningful assessments of firms' financial 
position.
    Proposed revisions: The Board proposes to revise the FR Q 
information collection to account for a reporting provision in section 
217.37(c)(4)(i)(E) of Regulation Q and a disclosure provision in 
section 217.124(a) of Regulation Q, which have not been previously 
cleared by the Board under the PRA.
    Section 217.37 of Regulation Q relates to when a Board-regulated 
institution may recognize the credit risk mitigation benefits of 
financial collateral that secures a transaction. With the prior written 
approval of the Board, a Board-regulated institution may calculate 
haircuts using its own internal estimates of the volatilities of market 
prices and foreign exchange rates. A Board-regulated institution must 
have policies and procedures that describe how it determines the period 
of significant financial stress used to calculate the Board-regulated 
institution's own internal estimates for haircuts under this section 
and must be able to provide empirical support for the period used. 
Section 217.37(c)(4)(i)(E) requires Board-regulated institutions to 
obtain the prior approval of the Board for, and notify the Board if the 
Board-regulated institution makes any material changes to, these 
policies and procedures.
    Subpart E of Regulation Q requires a Board-regulated institution to 
have a rigorous process for assessing its overall capital adequacy in 
relation to its risk profile and a comprehensive strategy for 
maintaining an appropriate level of capital. Section 217.124(a) permits 
a Board-regulated institution that merges with or acquires a company 
that does not calculate its risk-based capital requirements using 
advanced systems to use a standardized approach to determine the risk-
weighted asset amounts for the merged or acquired company's exposures. 
A Board-regulated institution that takes advantage of this provision 
must disclose publicly the amounts of risk-weighted assets and 
qualifying capital using advance approaches for the acquiring Board-
regulated institution and standard approaches for the acquired company.
    Legal authorization and confidentiality: Section 38 of the Federal 
Deposit Insurance Act \2\ and section 908 of the International Lending 
Supervision Act of 1983 \3\ require each appropriate Federal banking 
agency to develop capital standards and to ensure that banking 
institutions maintain adequate capital. The Board is the appropriate 
Federal banking agency for SMBs, and thus, these provisions authorize 
the FR Q with respect to SMBs.\4\ The FR Q is authorized for BHCs by 
section 5(b) of the Bank Holding Company Act of 1956 (BHC Act), which 
authorizes the Board to ``issue such regulations and orders, including 
regulations and orders relating to the capital requirements for [BHCs], 
as may be necessary to enable it to administer and carry out the 
purposes of this chapter and prevent evasions thereof.'' \5\ The FR Q 
is authorized for SLHCs by section 10(g) of the Home Owners' Loan Act 
(HOLA), which states that ``[t]he Board is authorized to issue such 
regulations and orders, including regulations and orders relating to 
capital requirements for [SLHCs], as the Board deems necessary or 
appropriate to enable the Board to administer and carry out the 
purposes of this section, and to require compliance therewith and 
prevent evasions thereof.'' \6\
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    \2\ 12 U.S.C. 1831o.
    \3\ 12 U.S.C. 3907(a)(l).
    \4\ 12 U.S.C. 1813(q).
    \5\ 12 U.S.C. 1844(b).
    \6\ 12 U.S.C. 1467a(g).
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    Section 165 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act), as amended by section 401 of the 
Economic Growth, Regulatory Relief, and Consumer Protection Act, 
requires the Board to establish prudential standards for nonbank 
financial companies supervised by the Board, as well as certain large 
BHCs supervised by the Board, that are more stringent than the 
standards and requirements applicable to companies that do not present 
similar risks to financial stability.\7\ These include risk-based 
capital requirements and leverage limits.\8\ The Board has required, 
pursuant to section 165(b)(1)(B)(iv) of the Dodd-Frank Act,\9\ certain 
foreign banking organizations subject to section 165 of the Dodd-Frank 
Act to form IHCs, and section 165 of the Dodd-Frank Act authorizes the 
FR Q with regards to these IHCs.
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    \7\ 12 U.S.C. 5365.
    \8\ 12 U.S.C. 5365(b)(1)(A)(i). See 12 U.S.C. 5371.
    \9\ 12 U.S.C. 5365(b)(1)(B)(iv).
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    The reporting requirements contained in the FR Q are also 
authorized by the Board's reporting authorities, which are contained in 
section 9(6) of the Federal Reserve Act for SMBs,\10\ section 5(c) of 
the BHC Act for BHCs and their subsidiaries,\11\ and section 10(b)(2) 
of HOLA for SLHCs.\12\ Additionally, with respect to SMBs, the 
reporting requirements contained in the FR Q are authorized by section 
11(a) of the Federal Reserve Act, which authorizes the Board to 
``require such statements and reports as it may deem necessary'' from 
member banks.\13\ The information collections associated with the FR Q 
are mandatory.
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    \10\ 12 U.S.C. 324.
    \11\ 12 U.S.C. 1844(c).
    \12\ 12 U.S.C. 1467a(b)(2).
    \13\ 12 U.S.C. 248(a).
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    The disclosure requirements in Regulation Q must be made publicly 
and therefore are generally not confidential. If a Board-regulated 
institution described in section 217.61 of Regulation Q concludes that 
specific commercial or financial information that it would otherwise be 
required to disclose under sections 217.62 or 217.63 of Regulation Q 
would be exempt from disclosure by the Board under the Freedom of 
Information Act (FOIA),\14\ then the Board-regulated institution is not 
required to disclose that specific information, but must disclose more 
general information about the subject matter of the requirement, 
together with the fact that, and the reason why, the specific items of 
information have not been disclosed.
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    \14\ 5 U.S.C. 552.
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    The information submitted pursuant to the reporting requirements in 
Regulation Q is likely to be nonpublic commercial or financial 
information, which is both customarily and actually treated as private 
by the respondent, and therefore eligible for confidential treatment 
pursuant to exemption 4 of FOIA.\15\
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    \15\ 5 U.S.C. 552(b)(4).
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    Because the information required to be retained pursuant to the 
recordkeeping requirements in Regulation Q is not routinely reported to 
the Board, it would likely only come into the Board's possession 
through the

[[Page 66704]]

supervisory process. Under these circumstances, information collected 
under the recordkeeping requirements would be eligible for confidential 
treatment pursuant to exemption 8 of FOIA, which protects information 
contained in or related to examination, operating, or condition reports 
prepared by, on behalf of, or for the use of an agency responsible for 
the regulation or supervision of financial institutions.\16\ 
Additionally, information retained pursuant to these requirements may 
be nonpublic commercial or financial information, which is both 
customarily and actually treated as private by the respondent, and 
therefore may be eligible for confidential treatment pursuant to 
exemption 4 of FOIA.\17\
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    \16\ 5 U.S.C. 552(b)(8).
    \17\ 5 U.S.C. 552(b)(4).
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    Consultation outside the agency: The Board worked with staff from 
the Federal Deposit Insurance Corporation and Office of the Comptroller 
of the Currency to confirm the burden estimates for this renewal.

    Board of Governors of the Federal Reserve System, November 1, 
2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-24028 Filed 11-3-22; 8:45 am]
BILLING CODE 6210-01-P