Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB, 1630-1632 [2016-00441]

Agencies

• FEDERAL RESERVE SYSTEM

[Federal Register Volume 81, Number 8 (Wednesday, January 13, 2016)]
[Notices]
[Pages 1630-1632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-00441]


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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: Notice is hereby given of the final approval of a proposed 
information collection by the Board of Governors of the Federal Reserve 
System (Board) under OMB delegated authority. Board-approved 
collections of information are incorporated into the official OMB 
inventory of currently approved collections of information. Copies of 
the Paperwork Reduction Act submission, supporting statements and 
approved collection of information instrument(s) are placed into OMB's 
public docket files. The Federal Reserve may not conduct or sponsor, 
and the respondent is not required to respond to, an information 
collection that has been extended, revised, or implemented on or after 
October 1, 1995, unless it displays a currently valid OMB control 
number.

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. Telecommunications Device for the Deaf (TDD) users may 
contact (202) 263-4869, Board of Governors of the Federal Reserve 
System, Washington, DC 20551.
    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.
    Final approval under OMB delegated authority to revise and extend 
for three years the following report:
    Report title: Annual Company-Run Stress Test Report for State 
Member Banks, Bank Holding Companies, and Savings and Loan Holding 
Companies with Total Consolidated Assets Greater Than $10 Billion and 
Less Than $50 Billion.
    Agency form number: FR Y-16.
    OMB control number: 7100-0356.
    Frequency: Annual.
    Reporters: Bank holding companies (BHCs) and savings and loan 
holding companies (SLHCs) with average total consolidated assets of 
greater than $10 billion but less than $50 billion, and any affiliated 
or unaffiliated state member bank (SMB) with average total consolidated 
assets of more than $10 billion but less than $50 billion, excluding 
SMB subsidiaries of covered companies.
    Estimated annual reporting hours: BHCs: 24,388 hours; SLHCs: 3,283 
hours; SMBs: 4,690 hours; One-time implementation: 7,200 hours.
    Estimated average hours per response: BHCs: 469 hours; SLHCs: 469 
hours; SMBs: 469 hours; One-time implementation: 3,600 hours.
    Number of respondents: BHCs: 52; SLHCs: 7; SMBs: 10; One-time 
implementation: 2.
    General description of report: This information collection is 
authorized pursuant section 165(i)(2) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (Dodd-Frank Act), which specifically 
authorizes the Board to issue regulations implementing the annual 
stress testing requirements for its supervised institutions (12 U.S.C. 
5365(i)(2)(C)). More generally, with respect to BHCs, section 5(c) of 
the Bank

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Holding Company Act (12 U.S.C. 1844(c)), authorizes the Board to 
require a BHC and any subsidiary ``to keep the Board informed as to--
(i) its financial condition, [and] systems for monitoring and 
controlling financial and operating risks . . . .'' Section 9(6) of the 
Federal Reserve Act (12 U.S.C. 324), requires SMBs to make reports of 
condition to their supervising Reserve Bank in such form and containing 
such information as the Board may require. Finally, with respect to 
SLHCs, under section 312 of the Dodd-Frank Act (12 U.S.C. 5412), the 
Board succeeded to all powers and authorities of the Office of Thrift 
Supervision, U.S. Department of the Treasury, and its Director, 
including the authority to require SLHCs to ``file . . . such reports 
as may be required . . . in such form and for such periods as the 
[agency] may prescribe'' (12 U.S.C. 1467a(b)(2)).
    The obligation to respond is mandatory. Section 165(i)(2)(A) 
provides that ``financial companies that have total consolidated assets 
[meeting the asset thresholds] . . . and are regulated by a primary 
Federal financial regulatory agency shall conduct annual stress 
tests.'' Section 165(i)(2)(B) provides that a company required to 
conduct annual stress tests ``shall submit a report to the Board and to 
its primary financial regulatory agency at such time, in such form, and 
containing such information as the primary financial regulatory agency 
shall require'' (12 U.S.C. 5365(i)(2)(B)).
    As noted under section 165(i)(2)(C)(iv), companies conducting 
annual stress tests under these provisions are ``require[d] . . . to 
publish a summary of the results of the required stress tests.'' (12 
U.S.C. 5365(i)(2)(C)(iv)). Regarding the information collected by the 
Board, however, as such information will be collected as part of the 
Board's supervisory process, it may be accorded confidential treatment 
under Exemption 8 of the Freedom of Information Act (FOIA) (5 U.S.C. 
552(b)(8)). This information also is the type of confidential 
commercial and financial information that may be withheld under 
Exemption 4 of FOIA (5 U.S.C. 552(b)(4)).
    Abstract: The FR Y-16 applies to BHCs, SLHCs,\1\ and SMBs, 
excluding SMB subsidiaries of covered companies,\2\ with average total 
consolidated assets of greater than $10 billion but less than $50 
billion. The annual FR Y-16 report collects quantitative projections of 
revenues, losses, assets, liabilities, and capital across three 
scenarios provided by the Federal Reserve (baseline, adverse, and 
severely adverse) and qualitative supporting information on the 
methodologies and processes used to develop these internal projections. 
The FR Y-16 collects data through two primary schedules: (1) The 
Results Schedule (which includes the quantitative results of the stress 
tests under the baseline, adverse, and severely adverse scenarios for 
each quarter of the planning horizon) and (2) the Scenario Variables 
Schedule. In addition, respondents are required to submit a summary of 
the qualitative information supporting its quantitative projections. 
The qualitative supporting information must include:
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    \1\ The Dodd-Frank Wall Street Reform and Consumer Protection 
Act (Dodd-Frank Act) annual company-run stress testing requirements 
do not apply to SLHCs until 2017, and will only apply to an SLHC 
that is subject to minimum regulatory capital requirements. See 12 
CFR 252.13(b)(2)(iii).
    \2\ ``Covered company'' is defined in 12 CFR 252(g) as a BHC 
(other than a foreign banking organization (FBO)) with average total 
consolidated assets of $50 billion or more; a U.S. intermediate 
holding company (IHC) subject to 12 CFR 252.153, and a nonbank 
financial company supervised by the Board.

 A description of the types of risks included in the stress 
test;
 a summary description of the methodologies used in the 
stress test;
 an explanation of the most significant causes for the 
changes in regulatory capital ratios, and
 the use of the stress test results.

    Results Schedule: For each of the three supervisory scenarios 
(Baseline, Adverse, and Severely Adverse), data are reported on two 
supporting schedules: (1) the Income Statement Schedule and (2) the 
Balance Sheet Schedule. In addition, the Results Schedule includes a 
Summary Schedule, which summarizes key results from the Income 
Statement and Balance Sheet Schedules.
    Income statement data are collected on a projected quarterly basis 
showing both projections of revenues and losses. These data are 
organized in a similar fashion to the mandatory Consolidated Financial 
Statements for Holding Companies (FR Y-9C; OMB No. 7100-0128), Schedule 
HI--Consolidated Income Statement, and the Consolidated Report of 
Condition and Income (FFIEC 031 and FFIEC 041; OMB No. 7100-0036) (Call 
Report), Schedule RI--Income Statement. For example, respondents 
project net charge-offs by loan type (stratified by twelve specific 
loan types), gains and losses on securities, pre-provision net revenue, 
and other key components of net income (i.e., provision for loan and 
lease losses, taxes, etc.).
    Balance sheet data are collected on a quarterly basis for 
projections of certain assets, liabilities, and capital. These data are 
organized in a similar fashion to the FR Y-9C, Schedule HC--
Consolidated Balance Sheet, and Call Report, Schedule RC--Balance 
Sheet. For example, respondents would project loans, allowance for loan 
and lease losses, securities, funding sources, and equity capital. 
Capital data are also collected on a projected quarterly basis and 
include components of regulatory capital, including the projections of 
risk weighted assets and capital actions such as common dividends and 
share repurchases.
    Scenario Variables Schedule: To conduct the stress tests, an 
institution may choose to project additional economic and financial 
variables beyond the mandatory supervisory scenarios provided to 
estimate losses or revenues for some or all of its portfolios. In such 
cases, the institution would be required to complete the Scenario 
Variables Schedule for each scenario where the institution chooses to 
use additional variables. The Scenario Variables Schedule collects 
information on the additional scenario variables used over the planning 
horizon for each supervisory scenario.
    Current Actions: The revisions to the FR Y-16 report would be 
effective for the 2016 stress test cycle and would: (1) Change the 
report as-of date from September 30 to December 31, (2) change the 
reporting submission or due date from March to July, and (3) modify the 
reporting instructions to make corresponding changes to the dates, 
reflect technical changes related to final implementation of BASEL III 
requirements, and to clarify certain of the instructions in 
coordination with the other federal regulatory agencies. None of the 
changes impose additional information collection requirements.
    On July 8, 2015, the Federal Reserve published a notice in the 
Federal Register (80 FR 39117) requesting public comment for 60 days on 
the proposal to revise and extend for three years the Annual Company-
Run Stress Test Report for $10-50 Billion Companies. The comment period 
for this notice expired on September 8, 2015. The Federal Reserve did 
not receive any comments, and the information collection will be 
revised as proposed.


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    Board of Governors of the Federal Reserve System, January 7, 
2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-00441 Filed 1-12-16; 8:45 am]
BILLING CODE 6210-01-P