Agency Information Collection Activities: Proposed Collection; Comment Request; Country Exposure Report (FFIEC 009) and Country Exposure Information Report (FFIEC 009a), 6176-6179 [2013-01816]
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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
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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:
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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: https://
www.federalreserve.gov. Follow the
instructions for submitting comments
on the https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Email:
regs.comments@federalreserve.gov.
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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 https://
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: https://
www.fdic.gov/regulations/laws/federal/
propose.html. Follow the instructions
for submitting comments on the FDIC
Web site.
Federal eRulemaking Portal: https://
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 https://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
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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).
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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.
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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
https://www.ffiec.gov/E16.htm.
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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,
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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.
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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
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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:
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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]
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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.
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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: https://www.federalreserve.gov. Follow the
instructions for submitting comments on the https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Federal eRulemaking Portal: https://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
https://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: https://www.fdic.gov/regulations/laws/federal/propose.html. Follow the instructions for submitting comments on the
FDIC Web site.
Federal eRulemaking Portal: https://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 https://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\
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\1\ The quarterly statistical release and individual
institutions' FFIEC 009a reports can be accessed at https://www.ffiec.gov/E16.htm.
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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,
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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.
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\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.
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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