[Federal Register Volume 89, Number 120 (Friday, June 21, 2024)]
[Notices]
[Pages 52042-52050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13798]
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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 Capital Assessments and Stress Testing Reports (FR Y-14A/Q/M; OMB
No. 7100-0341).
DATES: Comments must be submitted on or before August 20, 2024.
ADDRESSES: You may submit comments, identified by FR Y-14A/Q/M, 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, except for Federal holidays. 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 (which contains more detail about
the information collection and burden estimates than this notice), and
other documentation, will be made available on the Board's public
website at https://www.federalreserve.gov/apps/reportingforms/home/review 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: Capital Assessments and Stress Testing Reports.
Collection identifier: FR Y-14A/Q/M.
OMB Control Number: 7100-0341.
General description of collection: The FR Y-14A, FR Y-14Q, and FR
Y-14M reports (FR Y-14 reports) are used to set firms' stress capital
buffer (SCB)
[[Page 52043]]
requirements, support the supervisory stress test models, and collect
company-run stress test results. The data are also used to support the
supervision and regulation of these financial institutions.
Proposed revisions: The Board proposes to revise the FR Y-14
reports to implement various changes to the reports that would collect
more granular information on lending to nondepository financial
institutions (NDFIs), improve the timeliness and coverage of the
Board's collections of counterparty credit risk data, remove data
fields deemed no longer necessary, and make other minor revisions and
instructional clarifications. For the FR Y-14Q and FR Y-14M, the
proposed revisions would be effective for the September 30, 2024, as-of
date submissions, and for the FR Y-14A, the December 31, 2024, as-of
date submissions.
General
FR Y-14 Q&A System
Firms that report the FR Y-14 frequently have questions on the
reporting requirements. In order to promote the accuracy and
consistency of the FR Y-14 reports, the Board developed a Q&A system
where firms could submit questions to receive clarification on
reporting the FR Y-14. Due to the volume of questions received and the
detailed scenarios described in some questions, the Board is limited in
its ability to address all submitted questions, and firms occasionally
do not receive responses in a timely manner. Often, revisions to the FR
Y-14 address outstanding questions or otherwise make previous questions
no longer applicable. Moreover, during the revision process, the public
is provided the opportunity to comment on various aspects of the FR Y-
14 that are unclear. Therefore, unanswered questions that predate the
most recent FR Y-14 revisions may become obsolete.
In connection with this proposal, the Board encourages the
submission of comments regarding any aspects of the FR Y-14
instructions that may be unclear. Upon receipt of public comments
following the proposal, the Board intends to answer relevant
unaddressed questions and retire unanswered questions in the system
submitted prior to publication of the initial notice. Firms will
continue to have the opportunity to submit questions related to the FR
Y-14 to the Federal Reserve.
Question 1: Given that revisions to the FR Y-14 often address
outstanding questions, what are the advantages or disadvantages to
retiring the outstanding questions in the FR Y-14 Q&A system following
the receipt of public comments?
Supporting Documentation
Firms currently use Intralinks to submit supporting documentation
for certain FR Y-14A/Q/M schedules to the Board. Intralinks is being
replaced by One Agile Supervision Solution (OASiS), and firms will be
required to submit supporting documentation through OASiS instead of
Intralinks for the 2024 supervisory stress test. Therefore, the Board
proposes to update all references to Intralinks in the FR Y-14A/Q/M
instructions to reflect the transition to OASiS.
Historical Data
New reporters of the FR Y-14 are currently required to provide
historical reports of the FR Y-14Q PPNR and Retail schedules, providing
reports for all periods from when it first submits the FR Y-14 back to
March 2009 and January 2007, respectively. Firms began reporting the FR
Y-14 in 2012, and this historical data requirement enabled the Board to
understand how a firm's retail and PPNR schedules had performed in the
years preceding the initial submissions, to appropriately project its
losses in the supervisory stress test. However, given the passage of
time, firm-level historical data from as far in the past as 2007 or
2009 is less relevant to modeling a firm's losses in the stress test.
Additionally, firms that join the FR Y-14 panel may face significant
burdens to produce the required historical data. Therefore, the Board
proposes to modify this requirement in the FR Y-14Q instructions such
that new reporters, or existing reporters that must begin filing a
Retail schedule, would be required to provide historical reports only
for the five years preceding the first quarter that the firm is subject
to reporting. This change would reduce reporting burden, align with the
original spirit of the FR Y-14 historical reporting requirements, and
make the reporting requirement consistent for all firms regardless of
when they begin reporting.
Question 2: The Board has not established a process through which a
firm may request an exemption from an FR Y-14 historical data reporting
requirement. What would be the advantages and disadvantages of
establishing such a process? In particular, would such a process be
appropriate even if the changes to the historical data reporting
requirements described above are adopted? If a process for requesting
an exemption is established, what factors, such as the unavailability
of data, cost of providing data, or materiality of data, should the
Board consider in acting in these types of requests? In addition, what
would be an appropriate deadline for the filing of such requests (for
example, one month, three months, or six months prior to the date on
which the data would be due)?
Question 3: As an alternative to the proposed requirement to
provide five years of historical data, what would be the advantages and
disadvantages of requiring historical data from a different number of
years, such as 2 years or 10 years?
Exploratory Market Shocks
The supervisory stress test includes a global market shock (GMS)
component that applies to covered companies with substantial trading
exposures and is calculated using a large set of shocks to market risk
factors.\1\ The losses associated with the GMS are included in a firm's
losses under the severely adverse scenario, and consequently, generally
feed into their ultimate SCB requirement. Currently, the use of a
single GMS limits the Board's ability to capture and test a firm's
resilience to a range of risks, which is the purpose of the supervisory
stress test. Exploratory market shocks are informative to supervisory
efforts and help bolster the safety, soundness, and resiliency of the
financial system. Consistent with the nature of exploratory market
shocks and their information-serving purposes, the losses associated
with any exploratory market shocks would not contribute to firms'
capital requirements. Therefore, to expand risk identification beyond
the current GMS framework, the Board proposes to revise the FR Y-14
instructions to require firms to submit relevant data with respect to
all market shocks that the Board may conduct in a given year, including
any exploratory market shocks. Firms currently subject to the GMS
component of the supervisory stress test would be required to report FR
Y-14 information related to any exploratory market shocks. For purposes
of estimating the burden associated with the FR Y-14, the Board
estimates that it would conduct two exploratory market shocks per year.
However, the number of exploratory market shocks conducted may vary
from year to year.
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\1\ See Board of Governors of the Federal Reserve System, 2023
Stress Test Scenarios (February 2023), https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20230209a1.pdf.
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Collection of Supplemental CECL Information
The FR Y-14A, ``Collection of Supplemental CECL Information'' is a
one-time submission required from
[[Page 52044]]
firms that have adopted ASU 2016-13, which collects certain information
reflecting the current expected credit losses (CECL) methodology. This
collection was implemented to identify the effect and timing of the
adoption of CECL and the associated transition provisions, as provided
by section 301 of the regulatory capital rules. As all firms have now
adopted ASU 2016-13, this supplemental collection is not needed on a
go-forward basis for modeling or analytic purposes. Therefore, the
Board proposes to remove the ``Collection of Supplemental CECL
Information'' from the FR Y-14A.
Other Revisions
For Comprehensive Capital Analysis and Review (CCAR) submissions of
FR Y-14A, Schedule A (Summary), under both the internal stress scenario
as well as the supervisory severely adverse scenario, firms are
currently instructed to report alternative capital actions, which the
firms would expect to take if the stress scenario were realized. Per
the Board's capital rule, the maximum payout amount is a function of a
firm's eligible retained income and capital ratios.\2\ However, upon a
request of the Board-regulated institution, the Board may approve
additional distributions if it determines that the distribution would
not be contrary to the purposes of this capital rule, or to the safety
and soundness of the Board-regulated institution.\3\ To accurately
monitor firms' capital ratios and plans under the internal stress
scenario and the supervisory severely adverse scenario, the Board
proposes to instruct firms to report the CCAR submissions of Schedule A
inclusive of capital actions for which the firm expects to request
prior approval under 12 CFR 217.11.
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\2\ 12 CFR 217.11(a)(2)(ii).
\3\ 12 CFR 217.11(c)(1)(vi).
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Net charge-offs are generally defined to be gross of write-downs.
FR Y-14A, Schedule A.1.a (Income Statement), line item 114 (``Total Net
Charge-offs during the quarter'') instructs firms to report as defined
in the FR Y-9C, Schedule HI-B (Charge-Offs and Recoveries on Loans and
Leases and Changes in Allowances for Credit Losses), Part I (Charge-
offs and Recoveries on Loans and Leases), line item 9 (Total), column A
(Charge-offs) minus column B (Recoveries) and is derived as the sum of
Schedule A.1.a., items 114a-d. However, FR Y-9C, Schedule HI-B, Part I,
line item 9, column A is charge-offs gross of write downs, and Column B
is recoveries. The calculation defined in the instructions for line
item 114a (``Net charge-offs during the quarter on loans and leases'')
is FR Y-9C, Schedule HI-B, Part II (Changes in Allowances for Credit
Losses), Column A (Loans and leases held for investment, item 3
(Charge-offs) minus item 2 (Recoveries), where item 3 is charge-offs
net of write-downs. This creates an inconsistency between how firms are
instructed to report line item 114, which is done as reported on the FR
Y-9C, and its sum as a total of line items 114a-d. For alignment and
accurate reporting, the Board proposes to revise the instructions for
the FR Y-14A, Schedule A.1.a line item 114a to be gross of write downs
and line item 114 to be the total of the components, 114a-d.
FR Y-14A, Schedule A.7.a, item 36 (``Provisions for Unfunded Off-
Balance Sheet Credit Exposures'') instructs firms to report the
provision for credit losses on off-balance sheet exposures normally
reported as one of the items in FR Y-9C, Schedule HI, item 7.d (``Other
noninterest expense''). Prior to implementation of the CECL
methodology, provisions for off-balance sheet exposures were recorded
as other noninterest expense. However, CECL incorporates provisions for
off-balance sheet exposures in provisions for loan and lease losses.
The FR Y-9C has been updated to reflect this standard. As a result, the
FR Y-9C, Schedule HI, item 7.d is no longer relevant for item 36 on FR
Y-14A, Schedule A.7.a. To ensure consistency between reports, the Board
proposes to update the instructions for item 36 to reference the FR Y-
9C, Schedule HI-B, Part II, item M7 (``Provisions for credit losses on
off-balance sheet credit exposures'').
On January 26, 2023, the Board adopted a final rule to implement
the Adjustable Interest Rate (LIBOR) Act.\4\ The rule established
benchmark replacements for certain contracts governed by U.S. law to
address references to LIBOR, which ceased to exist after June 30, 2023.
The Board therefore proposes to revise the FR Y-14 to remove or replace
all references to LIBOR in a manner consistent with the rule.
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\4\ 88 FR 5204 (January 26, 2023).
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Counterparty
Submission of Fourth Quarter Data
Unstressed submissions of FR Y-14Q, Schedule L (Counterparty) are
currently collected four times per year. Three of the as-of dates are
the last calendar days of the first, second, and third quarters. The
fourth is the Board provided as-of date for the GMS component of the
supervisory stress test, which must fall between October 1 of the
previous calendar year and March 1 of the year of the supervisory
stress test.\5\ These requirements can result in a timing gap between
the unstressed submissions for the first and third quarters of up to 6
months. This timing gap can result in the Board not having up-to-date
data on firms' counterparty credit risks. The absence of important data
has been noted during times of instability, when it is important to
have reliable, timely data. To address this limitation and create
consistency in reporting frequency, the Board proposes to require an
additional unstressed Schedule L submission as of the last calendar day
of the fourth quarter. Consistent with the due date for the other FR Y-
14Q schedules as of the fourth quarter, this submission would be due 52
days after the calendar quarter-end. A stressed and unstressed Schedule
L would still be submitted as-of the Board-provided GMS date, as is
currently required.
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\5\ 12 CFR 252.54(b)(2)(i).
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Reporting Scope and Frequency for Firms Subject to Category I Standards
The FR Y-14Q instructions set several materiality thresholds to
determine the frequency and scope of reporting for several schedules.
Only firms subject to Category I, II, or III standards and that, as of
two quarters preceding the reporting quarter, have on average for four
quarters, aggregate trading assets and liabilities of $50 billion or
more, or aggregate trading assets and liabilities equal to 10 percent
or more of total consolidated assets, must submit FR Y-14Q, Schedule L.
Firms with trading operations below the materiality threshold are not
required to report Schedule L. As a result, certain U.S. GSIBs do not
file the complete Schedule L.
Category I standards apply to firms that qualify as U.S. global
systemically important banks (GSIBs), given the risk their individual
failure poses to the broader financial system. For the U.S. GSIBs that
are not currently required to report Schedule L, the minimal data on
their counterparty credit exposures is not sufficiently frequent or
comprehensive to provide meaningful risk monitoring when a financial
market stress event occurs.
To ensure that data on all U.S. GSIB counterparty risks, including
credit valuation adjustment and counterparty default risks, will be
available in a timely manner, the Board proposes to revise the
threshold for Schedule L reporting to be inclusive of all firms subject
to Category I standards. The reporting threshold would remain
[[Page 52045]]
unchanged for firms subject to Category II, III, and IV standards.
Reporting of Counterparties Under the Firm-Generated Scenario
FR Y-14Q, Schedule L.5 (Derivatives and Securities Financing
Transactions Profile) collects information on a firm's top
counterparties associated with securities financing transactions (SFTs)
and/or derivative positions at the level of positions netting.
Specifically, Schedule L.5.1 (Derivative and SFT information by
counterparty legal entity and netting set/agreement) is intended to
identify the counterparties to these types of positions under ranking
methodologies and the associated exposures. Schedule L.5 is submitted
yearly under the stressed conditions as prescribed in the Board-
provided scenario. Firms are also required to generate their own stress
scenario, but the related exposures are not collected on Schedule L.5.
To have more information on a firm's view of its own risk profile, the
Board proposes to require the reporting of Schedule L.5 under the firm-
generated stress scenario. This revision would require a new ranking
methodology to be reported on Schedule L.5 under which a firm ranks its
top 25 counterparties by stressed net current exposure (net CE) under
the firm-generated scenario and the reporting of the related exposures
on sub-schedules L.5.2-L.5.4.
Assumptions Associated With the Reporting of CVA Sensitivities
FR Y-14Q, Schedule L.4 (Aggregate and Top 10 CVA Sensitivities by
Risk Factor) collects sensitivity information of aggregate asset-side
CVA based on changes in underlying risk factors. Generally, a
sensitivity refers to a 1-unit change in the risk factor, and a slide
refers to a larger change in the risk factor. However, Schedule L.4
does not specify the assumptions under which to calculate the CVA which
results in inconsistent reporting across firms and hinders data
comparisons. Additionally, the other CVA sub-schedules (L.1, L.2, and
L.3) specify that the data are to be reported using the Board-provided
scenario and specifications (i.e., margin period of risk of 10 business
days, keeping CSA thresholds flat, no gains from netting, and no credit
downgrade triggers). To increase the consistency of reporting and to
better assess the impact of the market shock scenario across firms, the
Board proposes to specify that the CVA sensitivities on Schedule L.4
must be reported using the Federal Reserve provided specifications.
Netting When Calculating Net CE
FR Y-14Q, Schedule L collects information on net CE for SFT
agreements in a firm's portfolio. Generally, if a firm does not have a
close-out netting agreement with a counterparty on its SFT portfolio,
the firm is not allowed to take a netting benefit across the
transactions but can net exposures across multiple legs within a single
transaction when calculating net CE. However, the instructions for
reporting net CE are ambiguous regarding netting practices. To clarify
the reporting of net CE in Schedule L, the Board proposes to revise the
instructions to describe how a firm can net exposures when calculating
net CE for SFTs. This revision would address questions and issues
raised in FR Y-14 Q&As #Y140001627 and #Y140001614.
Removal of Fields Deemed No Longer Necessary
FR Y-14Q, Schedule L.5.1 (Derivative and SFT information by
counterparty legal entity and netting set/agreement) collects
information about a firm's top counterparties associated with SFTs and/
or derivative positions at the level of position netting under
different ranking methodologies. The collection of these data supports
both stress test modeling and supervisory monitoring of counterparty
exposures. Over time, several items on Schedule L.5.1 have been
identified as providing minimal value in these supervisory activities.
These items are:
Threshold CP
Threshold BHC or IHC or SLHC
Minimum Transfer Amount CP
Minimum Transfer Amount BHC or IHC or SLHC
CDS Reference Entity Type
5Y CDS Spread (bp)
Additionally, the item ``Downgrade Trigger Modeled?'' on Schedule
L.1.a (Top consolidated/parent counterparties comprising 95% of firm
unstressed credit valuation adjustment (CVA), ranked by unstressed CVA)
and L.1.b (Top consolidated/parent counterparties comprising 95% of
firm stressed CVA, ranked by Federal Reserve Severely Adverse Scenario
stressed CVA for the CCAR quarter) is no longer necessary as firms are
instructed to report `NA' in this field. To reduce burden and ensure
the Board only collects necessary data, the Board proposes to retire
all the items discussed in this sub-section from Schedule L.
Other FR Y-14Q, Schedule L Revisions
Firms are required to identify the type of non-cash collateral or
initial margin that were either posted or received for SFT and
derivative agreements in the ``Non-Cash Collateral Type'' field, per
the general instructions for Schedule L.5.1. However, the ``Non-Cash
Collateral Type'' instructions do not specify if this field applies to
both derivatives and SFTs. To remove ambiguity, the Board proposes to
clarify that the ``Non-Cash Collateral Type'' field pertains to both
SFTs and derivatives. This revision would address questions and issues
raised in FR Y-14 Q&A #Y140001591.
On FR Y-14Q, Schedule L.5, firms are instructed to rank their top
25 counterparties with positive net CE for each of the ranking
methodologies. However, in some cases, a firm may not have 25
counterparties with positive net CE. For clarity, the Board proposes to
specify that if a firm has less than 25 applicable counterparties for a
given ranking methodology, then it should only report the applicable
counterparties, and should not report additional counterparties with
zero net CE. This revision would address questions and issues raised in
FR Y-14 Q&A #Y140001595.
Net CE is calculated at the counterparty netting agreement level
where it is possible for an underlying netting agreement to cover both
fair-value and accrual SFT agreements. Schedule L currently pertains to
both fair-value and accrual SFTs, however the instructions only mention
fair-value SFTs when calculating Net CE. To reduce ambiguity, the Board
proposes to clarify that, when a netting agreement covers both fair-
value and accrual SFTs, a firm should combine both types of SFTs for
purposes of reporting Net CE and CVA metrics in Schedule L.
The FR Y-14Q, Schedule L.5.1 ``Agreement Type'' field requires
firms to identify the derivative agreement type when at least one of
the netting sets associated with the counterparty has a legally
enforceable collateral agreement. For derivatives, allowable entries
are ``Derivatives 1-way CSA [Credit Support Annex]'', ``Derivatives 2-
way SCSA [Standard Credit Support Annex]'', ``Derivatives 2-way old
CSA'', or ``Derivatives Centrally Cleared''. However, the instructions
do not currently provide definitions for these agreement types. The
Board proposes to clarify that firms should use the International Swaps
and Derivatives Association, Inc., publication of the 2013 Standard
Credit Support Annex for the basis of classifying derivatives as SCSA
and use Old-CSA for agreements made prior to this publication when
reporting this field.
[[Page 52046]]
Wholesale
FR Y-14Q, Schedule H (Wholesale) collects loan-level information on
corporate and commercial real estate loans and leases to support the
supervisory stress test and risk analyses. The data collected includes
details on the obligor and loan itself, and the financial health of the
obligor. The following proposed revisions would enhance Schedule H to
address growing financial stability risks, improve the quality of
collected data, and address new accounting standards.
Reporting Treatment of Nondepository Financial Institutions
U.S. bank exposures to NDFIs have grown rapidly over the past five
years and reached about $2 trillion in the fourth quarter of 2022.\6\
This growth poses risks to banks, as certain NDFIs operate with very
high leverage and are dependent on credit from the banking sector.
Currently, data on exposures to NDFIs are limited on the FR Y-14, as
banks report minimal information about these obligors, relative to
other corporate borrowers. This lack of data hinders staff's ability to
consistently measure, monitor, and model the risks stemming from these
exposures under stress.
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\6\ See Board of Governors of the Federal Reserve System,
Financial Stability Report (May 2023), https://www.federalreserve.gov/publications/files/financial-stability-report-20230508.pdf.
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The FR Y-14 report currently does not require firms to report
certain financial information (such as total assets, total liabilities,
short term debt or net income) on NDFI obligors, which results in a
material data gap. As a result, less than half of the total committed
exposure on the corporate loan schedule include data on the financial
health of the obligor. This lack of data means the stress test models
may not accurately capture risks associated with loans to NDFIs.
Similarly, this lack of data reduces the consistency of measurement and
monitoring of these exposures for supervisory purposes. To understand
the financial conditions of NDFI borrowers, the Board proposes to
require the reporting of fields 52 through 82 on Schedule H.1, the
``Obligor Financial Data Section'', for NDFIs.
Currently the FR Y-14 lacks the necessary granularity to classify
the business type of NDFI obligors that borrow from firms and the
associated risks. As the various business types of NDFIs pose different
types of risks to banks, these data are necessary to consistently
measure and monitor the risks NDFIs pose to firms and to ensure that
the supervisory stress test is appropriately calibrated for loans to
NDFIs. To understand banks' exposures to various NDFI types, the Board
proposes to add a ``NDFI Entity Type'' field to Schedule H.1 in which
firms would have multiple options to specify the NDFI type (e.g.,
credit fund, broker-dealer, special purpose entity, etc.) to which the
facility was extended.
Question 4: Which, if any, of the financial data fields (fields 52
through 82) would be especially difficult to provide for NDFI obligors
due to differences in financial statement frameworks or other
obstacles?
Reporting of Financial Sponsors
The role of financial sponsors has contributed to the growth of
NDFI activities in the corporate sector over the past several years. A
financial sponsor is any person, including any subsidiary of such
person, whose principal business activity is acquiring, holding, and
selling investments in otherwise unrelated companies that each are
distinct legal entities with separate management, books, records, and
bank accounts, whose operations are not integrated with one another and
whose financial condition and creditworthiness are independent of the
other companies so owned by such person. While the proposed revisions
to Schedule H described above would collect information on lending to
NDFIs and the associated risks, they would not increase insight into
equity investments in the corporate sector where NDFIs are increasing
their activities. To address this data gap, the Board proposes to
introduce three new fields on FR Y-14Q, Schedule H.1 to capture if the
obligor is controlled by a financial sponsor, and if so, that financial
sponsor's legal name and legal entity identifier. These fields would
inform the Board of lending to companies controlled by a NDFI, a noted
gap of insights into firm activities with NDFIs.
Additional Options for the Reporting of Security Type
FR Y-14Q, Schedule H.1 item 36 (``Security Type'') requires firms
to report the predominant security type for collateral other than or in
addition to real estate. There are currently seven options that can be
reported for this field. The majority of wholesale loans are secured by
collateral, which serves as the primary source of repayment. Further,
collateral is a key risk transmitter from NDFIs to firms and provides
an additional insight into the NDFI's activities. The lack of
granularity in this field diminishes the Board's understanding of this
characteristic of the obligor's facility, as the options provided are
not comprehensive. To better define the collateral underlying the loan,
the Board proposes to add twelve additional response options to the
``Security Type'' field, covering an array of known collateral types,
and implement an ``Other Security Type'' field to capture the full
range of collateral types.
Reporting of Fee Information
The data collected by Schedule H includes pricing characteristics
of each loan and sources of lender income, such as the facility's
interest rate. However, a facility's fees can also be a significant
source of lender income and risk. Fee information is not currently
captured on Schedule H. The fee structure is a component of the overall
loan pricing, an indicator of lender tolerance, and a contributor to
the fair value of loans. The lack of fee data constrains the Board's
supervisory risk assessment process and obscures the pricing
characteristics of the facilities reported. To increase insight into
this aspect of a loan's pricing and riskiness, the Board proposes to
add five fields to Schedule H.1 and Schedule H.2 to capture the
facility's fee structure.
Reporting of Collateral Market Value
On Schedule H.1, one of the fields used to gain insight into the
financial health of the obligor is ``Collateral Market Value'', line
item 93, which requires the reporting of collateral market value for
facilities that require ongoing or periodic valuation of collateral if
the value has been updated in the firm's internal risk management
systems. Per the current instructions, this field is only reported for
collateral that is market-based. These specifications result in
infrequent reporting of this field, severely limiting its usefulness in
evaluating firm risk. To increase the understanding of a loan's risk
characteristics, the Board proposes to modify the instructions of the
``Collateral Market Value'' field to require the reporting of
collateral valuations for all facilities with commitments based on
collateral.
Loan Covenant Violation Information
Loan covenants appear in many commercial loan contracts and
circumscribe specific actions a borrower may take (nonfinancial
covenants) or thresholds for cash flow or balance sheet variables
(financial covenants). Breaching a covenant can put a borrower into
technical default and may give the lender the right to modify the terms
of the agreement. Covenant violations can increase a lender's
[[Page 52047]]
bargaining power and can provide broad opportunity to renegotiate
contract terms when the lender's internal cost of funds rises. Thus,
covenant violations could lead to a reduction in the existing stock of
credit, potentially affecting a large segment of borrowers. Information
regarding loan covenants provides additional details regarding the
lender's perspective of loan riskiness. Additionally, details on a
covenant violation would increase the Board's understanding of a firm's
ability to renegotiate a credit relationship, change its exposure to a
given borrower, or provide early warning signs of future loan
performance. However, FR Y-14Q, Schedule H.1 does not capture covenant
details. Therefore, the Board proposes to introduce a field to capture
if a loan covenant exists, whether the covenant has been violated, and,
if so, whether the agreement has been amended.
Loan Amortization Reporting
FR Y-14Q, Schedule H.2 requires the reporting of the number of
months to fully amortize a loan or indication of a non-standard
amortization schedule in line item 20 (``Amortization''). However,
there is not equivalent data collected for corporate loans on Schedule
H.1, and so the Board proposes to add an identical item to Schedule
H.1. The current expected credit losses (CECL) methodology requires
additional consideration of amortization periods to accurately quantify
the lifetime of a loan and balance run off. Therefore, receiving
amortization information on Schedule H.1 would provide data to more
accurately model provisions for corporate loans in the stress test.
Troubled Debt Restructurings
FR Y-14Q, Schedule H.2 collects information on loans that have been
modified as a troubled debt restructuring (TDR). Additionally, line
item 10 (``Origination Date'') indicates that firms should generally
not update the origination date if the modification made is a TDR. In
March 2022, the Financial Accounting Standards Board (FASB) issued new
accounting guidance, ASU No. 2022-02, which eliminated the recognition
of TDRs. In addition, ASU 2022-02 introduced accounting disclosures for
loan modifications to borrowers experiencing financial difficulty
(LMBEFDs). This guidance went into effect January 1, 2023, for firms
that have adopted ASU No. 2016-13. Consistent with ASU 2022-02, the
Board proposes to introduce a new field to Schedule H.1 and Schedule
H.2 to capture loans modified as LMBEFDs for firms that have adopted
ASU 2016-13. The Board also proposes to retire item 49 as it is no
longer needed under ASU 2022-02. Additionally, the Board proposes to
add LMBEFDs to line item 10 to indicate that LMBEFDs are generally not
considered a major loan modification, as currently indicated for TDRs.
Units of Size for Property Size Reporting
Beginning with the June 30, 2023, as-of date, the Board added two
options, ``Healthcare'' and ``Warehouse/Distribution'' to the
``Property Type'' field on the FR Y-14Q, Schedule H.2.\7\ Schedule H.2,
line item 39 (``Property Size'') collects data on the size of the
property securing the facility and specifies the unit of size in which
to report this field based on the property type. The instructions
currently do not specify how to report this field for the new
healthcare and warehouse/distribution property types. Therefore, the
Board proposes to specify that item 39 should be reported in square
feet when reporting the size of healthcare and warehouse/distribution
property types.
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\7\ 87 FR 52560 (August 26, 2022).
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Unused Commitments
The instructions to FR Y-14Q, Schedule H require firms to include
any unused commitments that are reported on FR Y-9C, Schedule HC-L
(Derivatives and Off-Balance-Sheet Items) that would be reported in the
relevant FR Y-9C category if such loans were drawn (including all
undrawn commitments extended to non-consolidated variable interest
entities and commitments to commit as defined in the FR Y-9C). Schedule
H is intended to capture all unused commitments where the firm has
extended terms that the borrower has accepted and are either in writing
or otherwise legally binding. The current Schedule H language is
ambiguous as to how to account for undrawn commitments, which can
result in inconsistencies across reports. To ensure consistent
reporting across firms and to eliminate ambiguity, the Board proposes
to update the Schedule H language to be clear about which commitments
must be reported.
Removal of Fields Deemed No Longer Necessary
On FR Y-14Q, Schedule H.1 (Corporate), item 43 (``Interest Income
Tax Status''), firms report the tax status of interest income for
Federal or State Income Tax purposes. The allowable values are
``Taxable'' or ``Tax Exempt,'' as determined by whether the interest
income received by the firm is tax exempt. The Board has determined
that information on the tax status of interest income is no longer
relevant for modeling or monitoring purposes, therefore, the Board
proposes to retire item 43 from Schedule H.1.
Retail
Alignment Between Loan-Level and Portfolio-Level First Lien Schedules
Currently, FR Y-14M, Schedule A.2 (Domestic First Lien Closed-end
1-4 Family Residential Portfolio Level Table) captures total principal
balance and cumulative write-downs within a firm's domestic first-lien
portfolio but does not capture total debt from loans involuntarily
terminated, total net recoveries, or total credit enhancements
received. While Schedule A.1 (Domestic First Lien Closed-end 1-4 Family
Residential Loan Level Table) collects these data for individual loans,
the absence of these data on Schedule A.2 limits the Board's insight
into charge-off and recovery information at the portfolio level. The
current granularity of the collection prohibits the calculation of
write-downs in a specific month or the timing of the loan termination.
Therefore, the Board proposes to add the fields ``Total Debt from Loans
Involuntarily Terminated,'' ``Total Net Recoveries,'' and ``Total
Credit Enhancements Received'' to Schedule A.2. The instructions for
these fields would replicate the language currently used for the
related fields on Schedule A.1.
Owner-Occupied Nonfarm Nonresidential Loans
FR Y-14Q, Schedule A.9 (U.S. Small Business) instructs firms to
report ``scored'' or ``delinquency managed'' domestic small business
loans as included in FR Y-9C, Schedule HC-C (Loans and Lease Financing
Receivables) line items 2.a, 2.b, 3, 4.a, 4.b, 7, 9.a, 9.b.2, and 10.b.
A key differentiating factor between corporate loans and small business
loans is how the firm evaluates the creditworthiness of the borrower.
For small business lending, firms rely on the credit score of the
borrower (scored) and/or use delinquency management. Therefore, scored
or delinquency managed owner-occupied nonfarm nonresidential (NFNR)
loans as reported in line item 1.e.1 in the FR Y-9C, Schedule HC-C are
small business loans and should be reported as such on Schedule A.9.
However, the Schedule A.9 instructions do not reference the
corresponding FR Y-9C line item. Further, FR Y-14Q, Schedule M
(Balances) does not distinguish between wholesale and retail owner-
occupied NFNR loans, as
[[Page 52048]]
there is only one line item under which to report all owner-occupied
NFNR loans. To eliminate reporting ambiguity, the Board proposes to
specify that scored or delinquency managed owner-occupied NFNR loans,
as reported in the FR Y-9C, Schedule HC-C, line item 1.e.1, should be
reported on Schedule A.9. The Board also proposes to specify that
scored owner-occupied NFNR loans be reported as small business loans
(line item 2.b) on Schedule M.1 and to add a line item to Schedule M.2
for scored owner-occupied NFNR loans. The existing owner-occupied NFNR
field (line item 1.b.3.a) on schedule M.1 would specify that it is only
intended to capture the wholesale loan balance. For completeness, the
Board proposes to enable the reporting of column F (``Scored Loans'')
for line item 7.d.1 (``Domestic Owner Occupied NFNR'') on FR Y-14Q,
Schedule K (Supplemental). The Board proposes to also clarify that
column F applies only to owner-occupied NFNR loans. These revisions
would ensure scored owner-occupied NFNR loans are reported properly
across the FR Y-14Q.
Reporting of International and Domestic Credit Card Loans
The instructions for FR Y-14Q, Schedule A.3 (International Credit
Card) require firms to report small business and corporate credit card
loans that are issued to non-U.S. addressees, as defined in the FR Y-
9C, Schedule HC-C, item 4.b ([Loans] To non-U.S. addresses), which only
accounts the loans for which the borrower is non-U.S. domiciled.
However, reporting international loans determined by borrower domicile
is inconsistent with the other international retail sub-schedules and
the Balances schedule. All other FR Y-14Q retail schedules and the
Balances schedule instruct firms to report international loans as
determined by the location of the holding office. The use of borrower
domicile as the defining criteria for loans in Schedule A.3 results in
credit card loans issued by international offices to U.S. addresses
being reflected only in Schedule M, which does not provide any loan
details. To align reporting standards of international loans across all
FR Y-14 schedules and ensure the Board has the data needed to project
loan performance in the stress test, the Board proposes to define all
international credit card loans by office location, not borrower
domicile. This revision would supersede the guidance issued in FR Y-14
Q&As #Y14000700, #Y140001258, #Y140001176, and # Y14000994, and these
Q&As would be updated to point to the new instructions.
Further, to avoid ambiguity, the Board proposes to revise the FR Y-
14Q retail schedule instructions to clarify that only loans held in
foreign offices should be reported on the international sub-schedules.
Additionally, to avoid a reporting gap or confusion in the
``Geography'' field, the Board proposes to add ``United States'' to
Region 1 for all international retail sub-schedules. These revisions
would be consistent with the proposed revision that would provide that
international loans are classified as such based on the location of the
office that holds the loan balance.
Relatedly, and for completeness in the collection of credit card
loan data, the Board proposes to incorporate loans issued by domestic
offices to international domiciles on FR Y-14M, Schedule D (Credit
Cards). Currently, the FR Y-14M defines domestic credit card loans by
office location but does not account for loans issued by domestic
offices to international addressees. This revision would close this
reporting gap and instruct firms to report all credit card loans held
in domestic offices, issued to both U.S. and non-U.S. addressees.
Revenue and Loss Sharing Agreements
As mentioned in the 2023 Supervisory Stress Test Methodology
document, the Board adjusts projected credit card losses to reflect
agreements with private entities to share a portion of both revenues
and losses generated by a specific credit card portfolio.\8\ Currently,
the Board collects the data used to make this adjustment through a
supplemental data collection. The Board proposes to formalize this
supplemental collection by requiring the reporting of all revenue and
loss sharing agreements (RLSAs) on FR Y-14M, Schedule D (Domestic
Credit Card). Schedule D currently only collects data on RLSAs with the
Federal Deposit Insurance Corporation (FDIC). This revision would
require firms to report all accounts that are a part of any RLSA on
Schedule D.1 (Domestic Credit Card Loan Level Table), line item 70
(``Loss Share''). Additionally, the Board would add two line items to
Schedule D.2 (Domestic Credit Card Portfolio Level Table) to collect
information on the dollar amount received or credited for credit losses
associated with RLSAs. Incorporating this supplemental collection would
ensure reporting of RLSAs is standardized and all firms receive
consistent treatment in the supervisory stress test.
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\8\ See Board of Governors of the Federal Reserve System, 2023
Supervisory Stress Test Methodology (June 2023), https://www.federalreserve.gov/publications/files/2023-june-supervisory-stress-test-methodology.pdf.
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Troubled Debt Restructurings
FR Y-14M, Schedule A.1 and Schedule B.1 (Domestic Home Equity Loan/
Line Level Table) collect information on loans that have been modified
as a troubled debt restructuring (TDR). Specifically, line item 96
(``Troubled Debt Restructuring Flag'') on Schedule A.1 and line item 55
(``Troubled Debt Restructuring Date'') on Schedule B.1 are reported by
firms that have made a loan modification classified as a TDR, as
defined in the FR Y-9C Glossary. However, as discussed above, ASU 2022-
02 eliminated the recognition of TDRs and introduced accounting
disclosures for LMBEFDs. This guidance went into effect January 1,
2023, for firms that have adopted ASU No. 2016-13. Consistent with ASU
2022-02, the Board proposes to introduce a new field to each Schedule
A.1 and Schedule B.1 to capture LMBEFDs for firms that have adopted ASU
2016-13. The Board also proposes to retire the existing TDR fields as
they are no longer needed under ASU 2022-02.
Removal of Fields Deemed No Longer Necessary
The Board proposes to remove three items from FR Y-14M, Schedule
D.1 (Domestic Credit Card Loan Level Table) that are inconsistently
reported and therefore provide reduced value in supervisory stress test
modeling and related analyses. Specifically, the Board proposes to
remove item 42 (``Behavioral Score''), item 111 (``Behavioral Score
Name Version''), and item 114 (``Date Co-Borrower was Added''). Items
42 and 114 are firms' internal estimates that are difficult to compare
across firms due to inconsistencies in how they are recorded.
Similarly, item 114 is infrequently reported which results in limited
value for modeling or analysis.
Line item 77 ``Modification Type'' on the FR Y-14M, Schedule B.1
allows the reporting of multiple types of modifications to a loan. One
of the reportable codes in this field is ``99 = Other,'' which captures
cases when the loan modification type is unknown. As the ``Modification
Type'' field covers all possible modification action types, the Board
proposes to remove line item 90 ``Other Modification Action Type'' from
Schedule B.1. Item 90 captures the loans under unknown modification
types but is no longer needed by the Board.
[[Page 52049]]
Other Revisions
The instructions for FR Y-14M, Schedule A.1 and Schedule B.1
``Workout Type Completed'' fields, line items 77 and 61 respectively,
require firms to leave these items blank if the loan has never been in
loss mitigation. To align the instructions for the workout type fields,
the Board proposes to clarify that the ``Workout Type Started'' fields
on these schedules (Schedule A.1, line item 143 and Schedule B.1, line
item 120), should also be left blank if the loan has never been in loss
mitigation.
The Board previously adopted revisions to expand the circumstances
under which firms would report the ``Principal Deferred'' and
``Principal Write-Down'' items on FR Y-14M, Schedule B.1; however, the
instructions for ``Principal Deferred'' were not revised to reflect
this.\9\ Specifically, the revision intended to expand reporting
requirements for loans deferred due to loss mitigation activities.
These revisions were adopted and implemented for the corresponding
fields on the FR Y-14M, Schedule A.1. For consistency, the Board
proposes to update the instructions for the FR Y-14M, Schedule B.1 line
item 59 (``Principal Deferred'') and to expand reporting requirements
to loans deferred due to loss mitigation activities. For completeness,
the Board proposes to clarify the instructions for the ``Principal
Write-Down'' field on the FR Y-14M, Schedule B.1 to indicate the line
item should be coded ``Y'' if adjustment to the unpaid principal
balance has occurred through modification or loss mitigation
activities.
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\9\ 87 FR 52560 (August 26, 2022).
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Firms are required to report quarter-end balances for charge cards
with a pay-over-time feature under line item 3.b (``Charge Cards'') on
FR Y-14Q, Schedule M (Balances). The Board has received questions
asking if the corresponding line item on FR Y-14A, Schedule A.1.b
(Balances) should also reflect charge cards with a pay-over-time
feature. For consistency and clarity, the Board proposes to specify
that charge cards with a pay-over-time feature should be reported in
line item 36 (``Charge Cards'') on FR Y-14A, Schedule A.1.b.
Balances
Information on shared-loss agreements (SLAs) with the FDIC has
historically been reported on the FR Y-9C, which collected data on the
balances of a portfolio covered by such agreements. These data have
been used to monitor the impact of SLAs on a firm's loan and lease
losses. However, in connection with a recent statutorily mandated
review, the Board removed most of these items from the FR Y-9C.\10\ To
ensure that the Board continues to receive this information and that
SLAs are reflected appropriately in the supervisory stress test, the
Board proposes to create a new FR Y-14Q, Schedule M (Balances) sub-
schedule to collect data on loans and leases covered by SLAs with the
FDIC. This collection would be substantially similar to the data
previously collected by the FR Y-9C. However, collecting the
information through the FR Y-14, rather than the FR Y-9C, would ensure
that only firms subject to the supervisory stress test are required to
report the information.
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\10\ 88 FR 18315 (March 28, 2023).
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Trading
Small Business Investment Companies
FR Y-14Q, Schedule F (Trading) is designed to capture profit/loss
sensitivities to positions firms hold in their trading books, private
equity investments, fair value option (FVO) loan hedges, and certain
other assets under fair value accounting. Private equity includes all
equity related investments such as common, preferred, and convertible
securities. Currently, investments in small business investment
companies (SBICs) are reported under the ``Other Unspecified Sector/
Industry'' industry group in the ``Unspecified Sector/Industry''
sector.\11\ This item is meant to capture the carry value of
instruments not easily categorized into one of the specified industries
and sectors, investments in several sectors, and for which there is
insufficient detail to break out the carry value of the holding into
component sectors. However, given the unique characteristics of SBICs
that distinguish them from general private equity exposures, the Board
proposes to add ``SBIC Interests'' as an industry group to capture
funded and unfunded equity interests in SBICs.
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\11\ See 13 CFR part 107 for the definition of SBICs.
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Capital
The instructions for FR Y-14Q, Schedule D (Capital) line item M1
(``Taxes paid through the as-of date of the current fiscal year'')
require firms to report the amount of taxes paid during the fiscal
year, through the as-of date, that are included in Schedule D, line
item 17 (``Amount to be deducted from common equity tier 1 due to
deduction threshold''). The reference to line item 17 is erroneous, as
this item was modified during an update to the form and instructions.
To correct this error and restore the original intent of item M1, the
Board proposes to remove the reference to line item 17 from the
instructions to clarify that firms should report taxes paid through the
as-of date of the current fiscal year.
FR Y-14A, Schedule A.1.d (Capital), line item 56 (``Unrealized
gains on available-for-sale preferred stock classified as an equity
security under GAAP and available for sale equity exposures includable
in tier 2 capital'') previously captured unrealized gains on AFS equity
securities that were recognized in AOCI. However, ASU 2016-01
reclassified unrealized gains on AFS equity securities to be reflected
in the retained earnings component of equity capital. To address the
new accounting standard, the Board proposes to retire item 56, as what
was previously captured in this item is already reflected in retained
earnings.
Firms are required to submit a version of FR Y-14A, Schedule C
(Regulatory Capital Instruments) at the time the firm seeks approval
for additional capital distributions pursuant to 12 CFR 225.8(j) or
within 15 days after making any capital distribution approved pursuant
to that section or a capital distribution in excess of the firm's final
planned capital distributions. These Schedule C submissions are
referred to as ``Incremental'' submissions. In FR Y-14 Q&A #Y140001459,
the Board clarified that an Incremental submission is required if a
firm makes a distribution such that the dollar amount exceeds the
firm's final planned capital distribution, as measured on an aggregate
basis beginning in the fourth quarter of the planning horizon through
the quarter at issue, even if that change is not reflected on Schedule
C. The Board proposes to add language to incorporate that response and
clarify that these Incremental submissions are required.
Securities
Reporting of Market Value
Firms are required to report the market value of the security being
hedged on FR Y-14Q, Schedule B.2 (Securities), line item 4 (``Market
Value''). Currently, the instructions for this field instruct firms to
report amortized cost when reporting a security that contains trade
lots or holdings that are not part of the hedging relationship. Since
this field is intended to capture the market value of the security, the
reference to amortized cost is erroneous and duplicative since
amortized cost is reported in line item 3 (``Amortized Cost''). To
correct this
[[Page 52050]]
erroneous reference, the Board proposes to revise the language from
``amortized cost'' to ``market value'' in the instructions for line
item 4.
Hedge Designations
FR Y-14Q, Schedule B.2, item 15 (ASU 2017-12 Hedge Designations)
currently captures ASU 2017-13 hedge designations allowed in
conjunction with partial-term hedging election in ASC 815-20-25-
12b(2)(ii). On March 28, 2022, the FASB issued ASU 2022-01, which
established the portfolio layer method to allow multiple hedged layers
of a closed portfolio, rather than just a single layer as currently
allowed. To be consistent with ASU 2022-01, the Board proposes to
revise item 15 to reflect the updated portfolio layer method of hedge
accounting.
Removal of Field Deemed No Longer Necessary
FR Y-14Q, Schedule B.2 (Investment Securities with Designated
Accounting Hedges), item 11 (``Hedged Cash Flow'') collects information
on the type of cash flow associated with the hedge if it is a cash flow
hedge. The Board has determined that this variable is not needed for
modeling or monitoring purposes, the Board proposes to retire item 11
from Schedule B.2.
Supplemental
FR Y-14Q, Schedule K (Supplemental) is intended to capture gaps in
the data collected between the FR Y-14 and FR Y-9C, and firms generally
do not need to complete all fields in the schedule. Specifically,
Column A (Immaterial Portfolios) captures the carrying value of loans
in immaterial or excluded portfolios that were not reported elsewhere
on the FR Y-14Q of FR Y-14M because they did not meet the materiality
thresholds. These instructions currently do not specify whether these
portfolios need to be reported on Schedule K if they were only reported
on one of the FR Y-14Q or FR Y-14M. Since Schedule K is intended to
capture gaps in collected data, portfolios that are reported on either
the FR Y-14Q or the FR Y-14M should not be reported on the schedule,
and the Board proposes to clarify this existing expectation in the
instructions.
Additionally, the instructions for Column D (Outstanding Balance of
Commercial Real Estate and Corporate loans under $1M in committed
balance) tell firms to report the outstanding balance of CRE and
corporate loans with under $1 million in committed balance for each of
the categories that had been excluded from FR Y-14Q, Schedule H based
solely on commitment size. Column D is intended to capture the sum of
the outstanding balance for these loans with under $1 million in
committed balance in a portfolio that is reported on Schedule H. Column
A is intended to capture the balance of immaterial portfolios, not
reported on Schedule H. To remove ambiguity, the Board proposes to
clarify that column D should only be reported for loans that are
included in a portfolio reported on Schedule H but were excluded based
solely on commitment size.
Frequency: Annually, quarterly, and monthly.
Respondents: Bank holding companies (BHCs), U.S. intermediate
holding companies of foreign banking organizations (IHCs), and covered
savings and loan holding companies (SLHCs) with $100 billion or more in
total consolidated assets, as based on (1) the average of the firm's
total consolidated assets in the four most recent quarters as reported
quarterly on the firm's Consolidated Financial Statements for Holding
Companies (FR Y-9C; OMB No. 7100-0128) or (2) the average of the firm's
total consolidated assets in the most recent consecutive quarters as
reported quarterly on the firm's FR Y-9Cs, if the firm has not filed an
FR Y-9C for each of the most recent four quarters.
Total estimated number of respondents: 38.
Total estimated change in burden: 21,962 hours.
Total estimated annual burden hours: 848,900.
Board of Governors of the Federal Reserve System, June 14, 2024.
Benjamin W. McDonough,
Deputy Secretary and Ombuds of the Board.
[FR Doc. 2024-13798 Filed 6-20-24; 8:45 am]
BILLING CODE 6210-01-P