Agency Information Collection Activities: Proposed Collection; Comment Request; Country Exposure Report (FFIEC 009) and Country Exposure Information Report (FFIEC 009a), 6176-6179 [2013-01816]

Download as PDF 6176 Federal Register / Vol. 78, No. 19 / Tuesday, January 29, 2013 / Notices notice concerns only the development by the Agencies of the Interagency Appraisal Complaint Form. The Agencies note that the ASC is responsible for the development of the ASC Hotline, including establishing a process for receiving complaints, identifying the appropriate Federal or State regulator, referring the complaints to such regulator, and providing reports on the complaints received. The development of that process is outside the scope of this notice, and the Agencies cannot comment on behalf of the ASC, an independent agency. However, the Agencies note that the ASC is not responsible for developing the Interagency Appraisal Complaint Form. The Agencies developed the Interagency Appraisal Complaint Form as a means to efficiently collect information in circumstances where the ASC determines the OCC, FDIC, or Interagency Appraisal Complaint Form and the Agencies’ use of the form need have no impact on any existing State complaint processes. The Agencies and the Federal Reserve Board developed the Interagency Appraisal Complaint Form for their own use, and the burden estimates are limited to complaints each of the Agencies reasonably anticipates receiving from ASC Hotline referrals. Such estimates are not intended to encompass the total complaints received by the ASC through the ASC Hotline, the total number of complaints referred by the ASC to the appropriate regulator(s), or the total complaints expected to be received independent of ASC Hotline referrals. NCUA is the appropriate regulator. While the Interagency Appraisal Complaint Form is focused on complaints regarding appraisal independence standards and USPAP, the Agencies’ responsibilities for considering complaints extends beyond these concerns, and the Agencies intend to consider all received complaints in a consistent manner, regardless of their source. As a practical matter, the Agencies expect to receive complaints concerning appraisers from a variety of sources, and that only some of those complaints will have been directed to the Agencies via the ASC Hotline. The Agencies believe it is important to use a form that is general and flexible enough to allow a complainant to express the nature of a complaint without restricting what types of complaints are allowable. Moreover, a State entity is not required to use the Number of respondents Interagency appraisal complaint form Burden Estimates The OCC, FDIC and NCUA estimate that the burden of this collection of information is as follows: Number of responses per respondent Annual number of responses Burden per response Total hours OCC ..................................................................................... NCUA ................................................................................... FDIC ..................................................................................... 1,500 300 200 1 1 1 1,500 300 200 0.5 0.5 0.5 750 150 100 Total .............................................................................. 2,000 ........................ ........................ ........................ 1,000 OCC OMB Control Number: 1557–NEW. Estimated Number of Respondents: 1500. Estimated Burden per Response: 0.5. Estimated Total Annual Burden: 750. srobinson on DSK4SPTVN1PROD with FDIC OMB Control Number: 3064–NEW. Estimated Number of Respondents: 200. Estimated Burden per Response: 0.5. Estimated Total Annual Burden: 100. NCUA OMB Control Number: 3133–NEW. Estimated Number of Respondents: 300. Estimated Burden per Response: 0.5. Estimated Total Annual Burden: 150. Comments continue to be invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information has practical utility; (b) The accuracy of the agency’s estimate of the burden of the collection of information; (c) Ways to enhance the quality, utility, and clarity of the information to be collected; (d) Ways to minimize the burden of the collection on respondents, including VerDate Mar<15>2010 16:47 Jan 28, 2013 Jkt 229001 through the use of automated collection techniques or other forms of information technology; and (e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Dated: January 22, 2013. Michele Meyer, Assistant Director, Legislative and Regulatory Activities Division, OCC. Dated: January 22, 2013. Robert E. Feldman, Executive Secretary, Federal Deposit Insurance Corporation. Dated: January 16, 2013. Mary Rupp, Secretary of the Board, NCUA. [FR Doc. 2013–01765 Filed 1–28–13; 8:45 am] BILLING CODE 7535–01–P; 6714–01–P; P PO 00000 DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency FEDERAL RESERVE SYSTEM FEDERAL DEPOSIT INSURANCE CORPORATION Agency Information Collection Activities: Proposed Collection; Comment Request; Country Exposure Report (FFIEC 009) and Country Exposure Information Report (FFIEC 009a) Office of the Comptroller of the Currency (OCC), Treasury; Board of Governors of the Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC). ACTION: Joint notice and request for comment. AGENCY: The OCC, the Board, and the FDIC (the ‘‘agencies’’) are seeking public comment on a proposal to extend and revise the currently approved information collections contained in the Country Exposure Report (FFIEC 009) and the Country Exposure Information Report (FFIEC 009a). The agencies are all members of the Federal Financial SUMMARY: Frm 00112 Fmt 4703 Sfmt 4703 E:\FR\FM\29JAN1.SGM 29JAN1 srobinson on DSK4SPTVN1PROD with Federal Register / Vol. 78, No. 19 / Tuesday, January 29, 2013 / Notices Institutions Examination Council (FFIEC), which has approved the agencies’ publication of proposed revisions to the FFIEC 009 and FFIEC 009a reports to collect additional information on exposures to foreign entities. The agencies will review the comments and recommendations received to determine the extent to which the FFIEC should modify the reports. The agencies will then submit the reports to the U.S. Office of Management and Budget (OMB) for review and approval. DATES: Comments must be submitted on or before April 1, 2013. ADDRESSES: Interested parties are invited to submit written comments to any or all of the agencies. All comments should refer to the OMB control number and will be shared among the agencies. ADDRESSES: Communications Division, Office of the Comptroller of the Currency, Mail Stop 6W–11, Attention: 1557–0100, Washington, DC 20219. In addition, comments may be sent by fax to (202) 649–5709 or by electronic mail to regs.comments@occ.treas.gov. You may personally inspect and photocopy comments at the OCC, 400 7th Street SW., Washington, DC 20219. For security reasons, the OCC requires that visitors make an appointment to inspect comments. You may do so by calling (202) 649–6700. Upon arrival, visitors will be required to present valid government-issued photo identification and submit to security screening in order to inspect and photocopy comments. All comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not enclose any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure. Additionally, please send a copy of your comments by mail to: OCC Desk Officer, 1557–100, U.S. Office of Management and Budget, 725 17th Street NW., #10235, Washington, DC 20503, or emailed to oira submission@omb.eop.gov. Board: You may submit comments, identified by FFIEC 009 or FFIEC 009a, by any of the following methods: Agency Web Site: http:// www.federalreserve.gov. Follow the instructions for submitting comments on the http://www.federalreserve.gov/ generalinfo/foia/ProposedRegs.cfm. Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. Email: regs.comments@federalreserve.gov. VerDate Mar<15>2010 16:47 Jan 28, 2013 Jkt 229001 Include the OMB control number in the subject line of the message. FAX: 202–452–3819 or 202–452– 3102. Mail: Robert deV. Frierson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW., Washington, DC 20551. All public comments are available from the Board’s Web site at http:// www.federalreserve.gov/generalinfo/ foia/ProposedRegs.cfm as submitted, except as necessary for technical reasons. Accordingly, your comments will not be edited to remove any identifying or contact information. Public comments may also be viewed electronically or in paper in Room MP– 500 of the Board’s Martin Building (20th and C Streets NW.) between 9 a.m. and 5 p.m. on weekdays. FDIC: You may submit written comments, which should refer to ‘‘Country Exposure Reports, 3064– 0017,’’ by any of the following methods: Agency Web Site: http:// www.fdic.gov/regulations/laws/federal/ propose.html. Follow the instructions for submitting comments on the FDIC Web site. Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. Email: Comments@FDIC.gov. Include ‘‘Country Exposure Reports, 3064– 0017’’ in the subject line of the message. Mail: Robert E. Feldman, Executive Secretary, Attention: Comments, FDIC, 550 17th Street NW., Washington, DC 20429. Hand Delivery/Courier: Guard station at the rear of the 550 17th Street Building (located on F Street) on business days between 7 a.m. and 5 p.m. Public Inspection: All comments received will be posted without change to http://www.fdic.gov/regulations/laws/ federal/propose/html including any personal information provided. Comments may be inspected at the FDIC Public Information Center, Room E– 1002, 3501 Fairfax Drive, Arlington, VA 22226, between 9 a.m. and 5 p.m. on business days. Additionally, commenters may send a copy of their comments to the OMB desk officer for the agencies by mail to the Office of Information and Regulatory Affairs, U.S. 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: Additional information or a copy of the collections may be requested from: OCC: Mary H. Gottlieb or Johnny Vilela, OCC Clearance Officers, 202– PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 6177 649–5490, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, Washington, DC 20219. Board: Cynthia Ayouch, Federal Reserve Board Clearance Officer, 202– 452–3829, Division of Research and Statistics, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. Telecommunications Device for the Deaf (TDD) users may call 202–263–4869. FDIC: Gary Kuiper, Counsel, (202) 898–3877, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429. SUPPLEMENTARY INFORMATION: In accordance with the requirements of the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. chapter 35), an Agency may not conduct or sponsor, and a respondent is not required to respond to, a collection of information unless it displays a currently valid OMB control number. ‘‘Collection of Information’’ is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) and includes Agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A)) requires Federal Agencies to provide a 60-day notice in the Federal Register concerning each proposed collection of information, including each proposed extension of an existing collection of information, before submitting the collection to OMB for approval. To comply with this requirement, the OCC, the Board, and the FDIC are publishing notice of the proposed collection of information set forth in this document. Country Exposure Report (FFIEC 009) and Country Exposure Information Report (FFIEC 009a)—OMB Control Numbers: OCC, 1557–0100; Board, 7100–0035; FDIC, 3064–0017— Extension Proposal to extend for three years, with revision, the following currently approved collections of information: Report Titles: Country Exposure Report and Country Exposure Information Report. Form Numbers: FFIEC 009 and FFIEC 009a. Frequency of Response: Quarterly. Affected Public: Business or other for profit. OCC OMB Number: 1557–0100. Estimated Number of Respondents: 16 (FFIEC 009), 9 (FFIEC 009a). Estimated Average Time per Response: 115 burden hours (FFIEC 009), 6 burden hours (FFIEC 009a). E:\FR\FM\29JAN1.SGM 29JAN1 6178 Federal Register / Vol. 78, No. 19 / Tuesday, January 29, 2013 / Notices Estimated Total Annual Burden: 54 burden hours (FFIEC 009a). Board OMB Number: 7100–0035. Estimated Number of Respondents: 42 (FFIEC 009), 32 (FFIEC 009a). Estimated Average Time per Response: 115 burden hours (FFIEC 009), 6.0 burden hours (FFIEC 009a). Estimated Total Annual Burden: 19,320 burden hours (FFIEC 009), 768 burden hours (FFIEC 009a). FDIC OMB Number: 3064–0017. Estimated Number of Respondents: 17 (FFIEC 009), 9 (FFIEC 009a). Estimated Average Time per Response: 115 burden hours (FFIEC 009), 6 burden hours (FFIEC 009a). Estimated Total Annual Burden: 7,820 burden hours (FFIEC 009), 216 burden hours (FFIEC 009a). General Description of Reports The Country Exposure Report (FFIEC 009) is filed quarterly with the agencies and provides information on international claims of U.S. banks, savings associations, and bank holding companies that is used for supervisory and analytical purposes. The information is used to monitor the foreign country exposures of reporting institutions to determine the degree of risk in their portfolios and assess the potential risk of loss. The Country Exposure Information Report (FFIEC 009a) is a supplement to the FFIEC 009 and provides publicly available information on material foreign country exposures (all exposures to a country in excess of 1 percent of total assets or 20 percent of capital, whichever is less) of U.S. banks, savings associations, and bank holding companies that file the FFIEC 009 report. As part of the Country Exposure Information Report, reporting institutions also must furnish a list of countries in which they have lending exposures above 0.75 percent of total assets or 15 percent of total capital whichever is less. srobinson on DSK4SPTVN1PROD with Background for the Proposed Changes The nature of U.S bank exposure abroad has shifted considerably since the FFIEC 009 report was first introduced in 1977, and previous revisions have not kept pace with those changes. Initially, the agencies’ primary concern focused on the possibility of sizeable losses to U.S. banks from foreign exposure to sovereigns and banks in Latin America, especially as a result of the imposition of exchange controls that would prevent repayment of credits originated in the U.S. VerDate Mar<15>2010 16:47 Jan 28, 2013 Jkt 229001 Accordingly, reporting was limited to three categories of claims: ‘‘public,’’ ‘‘banks,’’ and ‘‘other,’’ with the last category including all corporate and retail credits. Since then, banks have significantly increased their exposure to the private, non-bank sectors of economies around the world, increasing the possibility that losses could occur even in the absence of a sovereign default or the imposition of exchange controls. It became evident during the recent financial crisis that the level of detail provided in the current report was insufficient to capture the evolving risks from U.S. institutions’ foreign exposures. In response, banks increasingly provided additional information in other public disclosures, including filings with the Securities and Exchange Commission (e.g., in Quarterly Reports on Form 10–Q and Annual Reports on Form 10–K), about exposure to a selected group of countries. That information is drawn from banks’ internal calculations of foreign exposure, and therefore differed from the amounts reported in the FFIEC 009 report, which is based on a single standardized methodology for calculating and reporting such foreign exposures across all institutions, and the amounts publicly disclosed in the FFIEC’s Country Exposure Lending Survey statistical release and the FFIEC 009a report, which are extracted from the FFIEC 009 report.1 The FFIEC 009 report, as it is proposed to be revised, would serve an important purpose by ensuring consistency of reporting across institutions for a number of important components of foreign country exposure. These data would allow supervisors to compare the amount of one institution’s exposures to those of its peers for a country or set of countries, to analyze the aggregate exposure of U.S. banks to foreign creditors, and to monitor trends in exposures. The revised FFIEC 009a data would allow market participants to analyze more detailed, aggregate exposure data. The FFIEC 009 report is not a substitute for other more detailed supervisory data or internal management information. The revised FFIEC 009 and FFIEC 009a reports are proposed to be effective June 30, 2013. 1 The quarterly statistical release and individual institutions’ FFIEC 009a reports can be accessed at http://www.ffiec.gov/E16.htm. PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 Proposed Changes to the Information Collection In response to these issues, the agencies have developed recommended improvements to the reporting of foreign country exposure data by U.S. reporting institutions on the FFIEC 009 and FFIEC 009a reports. The changes are designed to improve the utility of the data for policy makers, bank supervisors, and market participants. In broad terms, the proposed revisions to the FFIEC 009 report would increase the number of counterparty categories, add additional information on the type of claim being reported, provide details on a limited number of risk mitigants to help provide perspective to currently reported gross exposure numbers, add more detailed reporting of credit derivatives, and add the United States as a country row to allow reconciliation between a reporting institution’s FFIEC 009 report and its Consolidated Financial Statements for Bank Holding Companies (FR Y–9C; OMB No. 7100– 0128) or Consolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices (Call Report; FFIEC 031; OMB Nos. 7100– 0036, 3064–0052, 1557–0081), as appropriate, and expand the entities that must report to include savings and loan holding companies (SLHCs). The specific proposed changes are discussed in more detail below. First, the number of exposure categories would be increased. The FFIEC 009 report currently has three categories for claims: ‘‘bank,’’ ‘‘public,’’ and ‘‘other.’’ The revised form would split the ‘‘other’’ category into ‘‘corporate,’’ ‘‘household,’’ and ‘‘nonbank financial institutions.’’ This proposed disaggregation will allow supervisors and the public to better analyze risks by counterparty type. Second, the revisions would include a memorandum item for the amount of claims held in the form of securities held-to-maturity (HTM) and availablefor-sale (AFS), providing additional information on this type of foreign country exposure, which may perform differently under stressed conditions than loans or leases. Third, the revisions would include memorandum information on collateral pledged against claims. Collateral pledged against a claim, for example in repurchase transactions, can reduce risk; with the proposed revisions, the FFIEC 009 would include information on such mitigants for the first time. Collateral held against claims would be reported on a gross basis, and would include additional information on the amount of such collateral that is in cash, E:\FR\FM\29JAN1.SGM 29JAN1 srobinson on DSK4SPTVN1PROD with Federal Register / Vol. 78, No. 19 / Tuesday, January 29, 2013 / Notices that is held in the same country as the claim against which it is pledged, and that is in the form of repurchase or securities lending agreements. The proposed new data on collateral held against claims will provide information for users to better assess net risks based on their own assumptions about the benefits of the collateral, and also should produce greater insight into reporting institutions’ own internal calculations of foreign country exposure, which typically take collateral into account. Fourth, the revisions would modify the FFIEC 009a public reporting requirement for exposures to individual countries. The threshold triggering public disclosure would remain, as currently set, at 1 percent of total assets or 20 percent of total capital, whichever is less. However, in calculating claims for this purpose, institutions would no longer subtract local liabilities of foreign branches or subsidiaries, changing the basis of reporting claims from transfer risk to country risk. This proposed change could result in the disclosure of claims for additional individual countries for a given institution. Fifth, data on gross credit derivatives purchased would be collected for the first time. Gross credit derivatives sold is already reported on the FFIEC 009 report. In addition, a conservatively netted (i.e., at the counterparty and reference entity level) version of credit derivatives purchased and sold would also be reported. The values reported would be notional amounts. These proposed additional data would provide a more complete view of credit derivative exposures. Sixth, information on offsetting positions in the securities trading book would be reported. Trading books may contain closely related long and short positions that partially or fully offset one another, mitigating the risk inherent in a given level of gross exposure. This proposed memorandum item would provide the portion of trading assets that can be offset by short positions at the level of the issuer (legal entity basis) and the instrument (debt versus debt; equity versus equity). Seventh, the United States would be added as a country for which exposures would be reported. Reporting institutions have indicated a strong preference for including the U.S. in the country rows so that amounts reported on an institution’s FFIEC 009 report can be reconciled to those reported on its FR Y–9C report or Call Report (FFIEC 031), as appropriate, which includes exposures to the U.S. VerDate Mar<15>2010 16:47 Jan 28, 2013 Jkt 229001 Eighth, the banking agencies propose adding SLHCs 2 to the panel of entities that must file the FFIEC 009 and FFIEC 009a. The proposed revisions would provide data to analyze the foreign country exposures and overall financial condition of SLHCs. Finally, the publicly available FFIEC 009a report would be expanded to include additional information for those individual countries for which the reporting threshold is triggered. This expansion would incorporate much of the new information proposed to be added to the FFIEC 009 report—the risk mitigants of collateral, offsetting positions for the trading book, and credit derivatives purchased; securities HTM and AFS; and claims on nonbank financial institutions—into the FFIEC 009a report. The proposed revisions to the FFIEC 009a report also include adding selected data currently reported on the FFIEC 009 report but not on the FFIEC 009a report—trading assets and unused commitments and guarantees— to properly inform the new information on offsetting positions for the trading book and off-balance-sheet items. The proposed enhancements to the FFIEC 009a report would provide market participants with more detailed aggregate exposure data for analytical purposes. Legal Basis for the Information Collection These information collections are mandatory under the following statutes: 12 U.S.C. 161 and 1817 (national banks), 12 U.S.C. 1464 (federal savings associations), 12 U.S.C. 248(a), 1844(c), and 3906 (state member banks and bank holding companies); 12 U.S.C. 1467a(b)(2) and 5412 (savings and loan holding companies); and 12 U.S.C. 1817 and 1820 (insured state nonmember commercial and savings banks and insured state savings associations). The FFIEC 009 information collection is given confidential treatment (5 U.S.C. 552(b)(4) and (b)(8)). The FFIEC 009a information collection is not given confidential treatment. Request for Comment The agencies invite comment on the following topics related to this collection of information: (a) Whether the information collections are necessary for the proper performance of the agencies’ functions, 2 The Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111–203) was enacted into law on July 21, 2010. Title III of the Dodd-Frank Act abolished the Office of Thrift Supervision (OTS) and transferred all former OTS authorities (including rulemaking) related to SLHCs to the Federal Reserve effective as of July 21, 2011. PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 6179 including whether the information has practical utility; (b) The accuracy of the agencies’ estimates of the burden of the information collections, 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 collections on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. All comments will become a matter of public record. Dated: January 10, 2013. Michele Meyer, Assistant Director, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency. Board of Governors of the Federal Reserve System, January 17, 2013. Robert deV. Frierson, Secretary of the Board. Dated at Washington, DC, this 15th day of January 2013. Federal Deposit Insurance Corporation. Robert E. Feldman, Executive Secretary. [FR Doc. 2013–01816 Filed 1–28–13; 8:45 am] BILLING CODE 4810–33–P; 6714–01–P; 6210–01–P DEPARTMENT OF THE TREASURY Office of Foreign Assets Control Unblocking of One Specially Designated National and Blocked Person Pursuant to Executive Order 13448 Office of Foreign Assets Control, Treasury. ACTION: Notice. AGENCY: The Treasury Department’s Office of Foreign Assets Control (‘‘OFAC’’) is publishing the name of one individual whose property and interests in property has been unblocked pursuant to Executive Order 13448 of October 18, 2007 (‘‘Blocking Property and Prohibiting Certain Transactions Related to Burma’’) (‘‘E.O. 13448’’). DATES: The unblocking and removal from the list of Specially Designated Nationals and Blocked Persons (‘‘SDN List’’) of the individual identified in this notice whose property and interests in property was blocked pursuant to Executive Order 13448 of October 18, 2007, is effective on January 24, 2013. SUMMARY: E:\FR\FM\29JAN1.SGM 29JAN1

Agencies

[Federal Register Volume 78, Number 19 (Tuesday, January 29, 2013)]
[Notices]
[Pages 6176-6179]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-01816]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Proposed Collection; 
Comment Request; Country Exposure Report (FFIEC 009) and Country 
Exposure Information Report (FFIEC 009a)

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of Governors of the Federal Reserve System (Board); and Federal 
Deposit Insurance Corporation (FDIC).

ACTION: Joint notice and request for comment.

-----------------------------------------------------------------------

SUMMARY: The OCC, the Board, and the FDIC (the ``agencies'') are 
seeking public comment on a proposal to extend and revise the currently 
approved information collections contained in the Country Exposure 
Report (FFIEC 009) and the Country Exposure Information Report (FFIEC 
009a). The agencies are all members of the Federal Financial

[[Page 6177]]

Institutions Examination Council (FFIEC), which has approved the 
agencies' publication of proposed revisions to the FFIEC 009 and FFIEC 
009a reports to collect additional information on exposures to foreign 
entities. The agencies will review the comments and recommendations 
received to determine the extent to which the FFIEC should modify the 
reports. The agencies will then submit the reports to the U.S. Office 
of Management and Budget (OMB) for review and approval.

DATES: Comments must be submitted on or before April 1, 2013.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments should refer to the OMB 
control number and will be shared among the agencies.

ADDRESSES: Communications Division, Office of the Comptroller of the 
Currency, Mail Stop 6W-11, Attention: 1557-0100, Washington, DC 20219. 
In addition, comments may be sent by fax to (202) 649-5709 or by 
electronic mail to regs.comments@occ.treas.gov. You may personally 
inspect and photocopy comments at the OCC, 400 7th Street SW., 
Washington, DC 20219. For security reasons, the OCC requires that 
visitors make an appointment to inspect comments. You may do so by 
calling (202) 649-6700. Upon arrival, visitors will be required to 
present valid government-issued photo identification and submit to 
security screening in order to inspect and photocopy comments.
    All comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not enclose any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-100, U.S. Office of Management and Budget, 725 17th 
Street NW., 10235, Washington, DC 20503, or emailed to oira 
submission@omb.eop.gov.
    Board: You may submit comments, identified by FFIEC 009 or FFIEC 
009a, by any of the following methods:
    Agency Web Site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments on the http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    Email: regs.comments@federalreserve.gov. Include the OMB control 
number in the subject line of the message.
    FAX: 202-452-3819 or 202-452-3102.
    Mail: Robert deV. Frierson, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW., 
Washington, DC 20551.
    All public comments are available from the Board's Web site at 
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, except as necessary for technical reasons. Accordingly, your 
comments will not be edited to remove any identifying or contact 
information. Public comments may also be viewed electronically or in 
paper in Room MP-500 of the Board's Martin Building (20th and C Streets 
NW.) between 9 a.m. and 5 p.m. on weekdays.
    FDIC: You may submit written comments, which should refer to 
``Country Exposure Reports, 3064-0017,'' by any of the following 
methods:
    Agency Web Site: http://www.fdic.gov/regulations/laws/federal/propose.html. Follow the instructions for submitting comments on the 
FDIC Web site.
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    Email: Comments@FDIC.gov. Include ``Country Exposure Reports, 3064-
0017'' in the subject line of the message.
    Mail: Robert E. Feldman, Executive Secretary, Attention: Comments, 
FDIC, 550 17th Street NW., Washington, DC 20429.
    Hand Delivery/Courier: Guard station at the rear of the 550 17th 
Street Building (located on F Street) on business days between 7 a.m. 
and 5 p.m.
    Public Inspection: All comments received will be posted without 
change to http://www.fdic.gov/regulations/laws/federal/propose/html 
including any personal information provided. Comments may be inspected 
at the FDIC Public Information Center, Room E-1002, 3501 Fairfax Drive, 
Arlington, VA 22226, between 9 a.m. and 5 p.m. on business days.
    Additionally, commenters may send a copy of their comments to the 
OMB desk officer for the agencies by mail to the Office of Information 
and Regulatory Affairs, U.S. 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: Additional information or a copy of 
the collections may be requested from:
    OCC: Mary H. Gottlieb or Johnny Vilela, OCC Clearance Officers, 
202-649-5490, Legislative and Regulatory Activities Division, Office of 
the Comptroller of the Currency, Washington, DC 20219.
    Board: Cynthia Ayouch, Federal Reserve Board Clearance Officer, 
202-452-3829, Division of Research and Statistics, Board of Governors 
of the Federal Reserve System, 20th and C Streets NW., Washington, DC 
20551. Telecommunications Device for the Deaf (TDD) users may call 202-
263-4869.
    FDIC: Gary Kuiper, Counsel, (202) 898-3877, Legal Division, Federal 
Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 
20429.

SUPPLEMENTARY INFORMATION: In accordance with the requirements of the 
Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. chapter 35), an Agency 
may not conduct or sponsor, and a respondent is not required to respond 
to, a collection of information unless it displays a currently valid 
OMB control number. ``Collection of Information'' is defined in 44 
U.S.C. 3502(3) and 5 CFR 1320.3(c) and includes Agency requests or 
requirements that members of the public submit reports, keep records, 
or provide information to a third party. Section 3506(c)(2)(A) of the 
PRA (44 U.S.C. 3506(c)(2)(A)) requires Federal Agencies to provide a 
60-day notice in the Federal Register concerning each proposed 
collection of information, including each proposed extension of an 
existing collection of information, before submitting the collection to 
OMB for approval. To comply with this requirement, the OCC, the Board, 
and the FDIC are publishing notice of the proposed collection of 
information set forth in this document.

Country Exposure Report (FFIEC 009) and Country Exposure Information 
Report (FFIEC 009a)--OMB Control Numbers: OCC, 1557-0100; Board, 7100-
0035; FDIC, 3064-0017--Extension

    Proposal to extend for three years, with revision, the following 
currently approved collections of information:
    Report Titles: Country Exposure Report and Country Exposure 
Information Report.
    Form Numbers: FFIEC 009 and FFIEC 009a.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for profit.
OCC
    OMB Number: 1557-0100.
    Estimated Number of Respondents: 16 (FFIEC 009), 9 (FFIEC 009a).
    Estimated Average Time per Response: 115 burden hours (FFIEC 009), 
6 burden hours (FFIEC 009a).

[[Page 6178]]

    Estimated Total Annual Burden: 54 burden hours (FFIEC 009a).
Board
    OMB Number: 7100-0035.
    Estimated Number of Respondents: 42 (FFIEC 009), 32 (FFIEC 009a).
    Estimated Average Time per Response: 115 burden hours (FFIEC 009), 
6.0 burden hours (FFIEC 009a).
    Estimated Total Annual Burden: 19,320 burden hours (FFIEC 009), 768 
burden hours (FFIEC 009a).
FDIC
    OMB Number: 3064-0017.
    Estimated Number of Respondents: 17 (FFIEC 009), 9 (FFIEC 009a).
    Estimated Average Time per Response: 115 burden hours (FFIEC 009), 
6 burden hours (FFIEC 009a).
    Estimated Total Annual Burden: 7,820 burden hours (FFIEC 009), 216 
burden hours (FFIEC 009a).

General Description of Reports

    The Country Exposure Report (FFIEC 009) is filed quarterly with the 
agencies and provides information on international claims of U.S. 
banks, savings associations, and bank holding companies that is used 
for supervisory and analytical purposes. The information is used to 
monitor the foreign country exposures of reporting institutions to 
determine the degree of risk in their portfolios and assess the 
potential risk of loss. The Country Exposure Information Report (FFIEC 
009a) is a supplement to the FFIEC 009 and provides publicly available 
information on material foreign country exposures (all exposures to a 
country in excess of 1 percent of total assets or 20 percent of 
capital, whichever is less) of U.S. banks, savings associations, and 
bank holding companies that file the FFIEC 009 report. As part of the 
Country Exposure Information Report, reporting institutions also must 
furnish a list of countries in which they have lending exposures above 
0.75 percent of total assets or 15 percent of total capital whichever 
is less.

Background for the Proposed Changes

    The nature of U.S bank exposure abroad has shifted considerably 
since the FFIEC 009 report was first introduced in 1977, and previous 
revisions have not kept pace with those changes. Initially, the 
agencies' primary concern focused on the possibility of sizeable losses 
to U.S. banks from foreign exposure to sovereigns and banks in Latin 
America, especially as a result of the imposition of exchange controls 
that would prevent repayment of credits originated in the U.S. 
Accordingly, reporting was limited to three categories of claims: 
``public,'' ``banks,'' and ``other,'' with the last category including 
all corporate and retail credits. Since then, banks have significantly 
increased their exposure to the private, non-bank sectors of economies 
around the world, increasing the possibility that losses could occur 
even in the absence of a sovereign default or the imposition of 
exchange controls.
    It became evident during the recent financial crisis that the level 
of detail provided in the current report was insufficient to capture 
the evolving risks from U.S. institutions' foreign exposures. In 
response, banks increasingly provided additional information in other 
public disclosures, including filings with the Securities and Exchange 
Commission (e.g., in Quarterly Reports on Form 10-Q and Annual Reports 
on Form 10-K), about exposure to a selected group of countries. That 
information is drawn from banks' internal calculations of foreign 
exposure, and therefore differed from the amounts reported in the FFIEC 
009 report, which is based on a single standardized methodology for 
calculating and reporting such foreign exposures across all 
institutions, and the amounts publicly disclosed in the FFIEC's Country 
Exposure Lending Survey statistical release and the FFIEC 009a report, 
which are extracted from the FFIEC 009 report.\1\
---------------------------------------------------------------------------

    \1\ The quarterly statistical release and individual 
institutions' FFIEC 009a reports can be accessed at http://www.ffiec.gov/E16.htm.
---------------------------------------------------------------------------

    The FFIEC 009 report, as it is proposed to be revised, would serve 
an important purpose by ensuring consistency of reporting across 
institutions for a number of important components of foreign country 
exposure. These data would allow supervisors to compare the amount of 
one institution's exposures to those of its peers for a country or set 
of countries, to analyze the aggregate exposure of U.S. banks to 
foreign creditors, and to monitor trends in exposures. The revised 
FFIEC 009a data would allow market participants to analyze more 
detailed, aggregate exposure data. The FFIEC 009 report is not a 
substitute for other more detailed supervisory data or internal 
management information.
    The revised FFIEC 009 and FFIEC 009a reports are proposed to be 
effective June 30, 2013.

Proposed Changes to the Information Collection

    In response to these issues, the agencies have developed 
recommended improvements to the reporting of foreign country exposure 
data by U.S. reporting institutions on the FFIEC 009 and FFIEC 009a 
reports. The changes are designed to improve the utility of the data 
for policy makers, bank supervisors, and market participants.
    In broad terms, the proposed revisions to the FFIEC 009 report 
would increase the number of counterparty categories, add additional 
information on the type of claim being reported, provide details on a 
limited number of risk mitigants to help provide perspective to 
currently reported gross exposure numbers, add more detailed reporting 
of credit derivatives, and add the United States as a country row to 
allow reconciliation between a reporting institution's FFIEC 009 report 
and its Consolidated Financial Statements for Bank Holding Companies 
(FR Y-9C; OMB No. 7100-0128) or Consolidated Reports of Condition and 
Income for a Bank with Domestic and Foreign Offices (Call Report; FFIEC 
031; OMB Nos. 7100-0036, 3064-0052, 1557-0081), as appropriate, and 
expand the entities that must report to include savings and loan 
holding companies (SLHCs). The specific proposed changes are discussed 
in more detail below.
    First, the number of exposure categories would be increased. The 
FFIEC 009 report currently has three categories for claims: ``bank,'' 
``public,'' and ``other.'' The revised form would split the ``other'' 
category into ``corporate,'' ``household,'' and ``non-bank financial 
institutions.'' This proposed disaggregation will allow supervisors and 
the public to better analyze risks by counterparty type.
    Second, the revisions would include a memorandum item for the 
amount of claims held in the form of securities held-to-maturity (HTM) 
and available-for-sale (AFS), providing additional information on this 
type of foreign country exposure, which may perform differently under 
stressed conditions than loans or leases.
    Third, the revisions would include memorandum information on 
collateral pledged against claims. Collateral pledged against a claim, 
for example in repurchase transactions, can reduce risk; with the 
proposed revisions, the FFIEC 009 would include information on such 
mitigants for the first time. Collateral held against claims would be 
reported on a gross basis, and would include additional information on 
the amount of such collateral that is in cash,

[[Page 6179]]

that is held in the same country as the claim against which it is 
pledged, and that is in the form of repurchase or securities lending 
agreements. The proposed new data on collateral held against claims 
will provide information for users to better assess net risks based on 
their own assumptions about the benefits of the collateral, and also 
should produce greater insight into reporting institutions' own 
internal calculations of foreign country exposure, which typically take 
collateral into account.
    Fourth, the revisions would modify the FFIEC 009a public reporting 
requirement for exposures to individual countries. The threshold 
triggering public disclosure would remain, as currently set, at 1 
percent of total assets or 20 percent of total capital, whichever is 
less. However, in calculating claims for this purpose, institutions 
would no longer subtract local liabilities of foreign branches or 
subsidiaries, changing the basis of reporting claims from transfer risk 
to country risk. This proposed change could result in the disclosure of 
claims for additional individual countries for a given institution.
    Fifth, data on gross credit derivatives purchased would be 
collected for the first time. Gross credit derivatives sold is already 
reported on the FFIEC 009 report. In addition, a conservatively netted 
(i.e., at the counterparty and reference entity level) version of 
credit derivatives purchased and sold would also be reported. The 
values reported would be notional amounts. These proposed additional 
data would provide a more complete view of credit derivative exposures.
    Sixth, information on offsetting positions in the securities 
trading book would be reported. Trading books may contain closely 
related long and short positions that partially or fully offset one 
another, mitigating the risk inherent in a given level of gross 
exposure. This proposed memorandum item would provide the portion of 
trading assets that can be offset by short positions at the level of 
the issuer (legal entity basis) and the instrument (debt versus debt; 
equity versus equity).
    Seventh, the United States would be added as a country for which 
exposures would be reported. Reporting institutions have indicated a 
strong preference for including the U.S. in the country rows so that 
amounts reported on an institution's FFIEC 009 report can be reconciled 
to those reported on its FR Y-9C report or Call Report (FFIEC 031), as 
appropriate, which includes exposures to the U.S.
    Eighth, the banking agencies propose adding SLHCs \2\ to the panel 
of entities that must file the FFIEC 009 and FFIEC 009a. The proposed 
revisions would provide data to analyze the foreign country exposures 
and overall financial condition of SLHCs.
---------------------------------------------------------------------------

    \2\ The Dodd-Frank Wall Street Reform and Consumer Protection 
Act (Pub. L. 111-203) was enacted into law on July 21, 2010. Title 
III of the Dodd-Frank Act abolished the Office of Thrift Supervision 
(OTS) and transferred all former OTS authorities (including 
rulemaking) related to SLHCs to the Federal Reserve effective as of 
July 21, 2011.
---------------------------------------------------------------------------

    Finally, the publicly available FFIEC 009a report would be expanded 
to include additional information for those individual countries for 
which the reporting threshold is triggered. This expansion would 
incorporate much of the new information proposed to be added to the 
FFIEC 009 report--the risk mitigants of collateral, offsetting 
positions for the trading book, and credit derivatives purchased; 
securities HTM and AFS; and claims on nonbank financial institutions--
into the FFIEC 009a report. The proposed revisions to the FFIEC 009a 
report also include adding selected data currently reported on the 
FFIEC 009 report but not on the FFIEC 009a report--trading assets and 
unused commitments and guarantees--to properly inform the new 
information on offsetting positions for the trading book and off-
balance-sheet items. The proposed enhancements to the FFIEC 009a report 
would provide market participants with more detailed aggregate exposure 
data for analytical purposes.

Legal Basis for the Information Collection

    These information collections are mandatory under the following 
statutes: 12 U.S.C. 161 and 1817 (national banks), 12 U.S.C. 1464 
(federal savings associations), 12 U.S.C. 248(a), 1844(c), and 3906 
(state member banks and bank holding companies); 12 U.S.C. 1467a(b)(2) 
and 5412 (savings and loan holding companies); and 12 U.S.C. 1817 and 
1820 (insured state nonmember commercial and savings banks and insured 
state savings associations). The FFIEC 009 information collection is 
given confidential treatment (5 U.S.C. 552(b)(4) and (b)(8)). The FFIEC 
009a information collection is not given confidential treatment.

Request for Comment

    The agencies invite comment on the following topics related to this 
collection of information:
    (a) Whether the information collections are necessary for the 
proper performance of the agencies' functions, including whether the 
information has practical utility;
    (b) The accuracy of the agencies' estimates of the burden of the 
information collections, 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 collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    All comments will become a matter of public record.

    Dated: January 10, 2013.
Michele Meyer,
Assistant Director, Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency.

    Board of Governors of the Federal Reserve System, January 17, 
2013.
Robert deV. Frierson,
Secretary of the Board.

    Dated at Washington, DC, this 15th day of January 2013.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2013-01816 Filed 1-28-13; 8:45 am]
BILLING CODE 4810-33-P; 6714-01-P; 6210-01-P