Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB, 77128-77132 [2013-30309]
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77128
Federal Register / Vol. 78, No. 245 / Friday, December 20, 2013 / Notices
INSTITUTIONS IN LIQUIDATION
FDIC Ref. No.
Bank name
City
10491 ................
Texas Community Bank, National Association .............................
The Woodlands .........................
FEDERAL RESERVE SYSTEM
[FR Doc. 2013–30238 Filed 12–19–13; 8:45 am]
BILLING CODE 6714–01–P
Agency Information Collection
Activities: Announcement of Board
Approval Under Delegated Authority
and Submission to OMB
FEDERAL DEPOSIT INSURANCE
CORPORATION
Notice to All Interested Parties of the
Termination of the Receivership of
10186—The La Coste National Bank La
Coste, Texas
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Notice is hereby given that the Federal
Deposit Insurance Corporation (‘‘FDIC’’)
as Receiver for The La Coste National,
La Coste, Texas (‘‘the Receiver’’) intends
to terminate its receivership for said
institution. The FDIC was appointed
receiver of The La Coste National Bank
on February 19, 2010. The liquidation of
the receivership assets has been
completed. To the extent permitted by
available funds and in accordance with
law, the Receiver will be making a final
dividend payment to proven creditors.
Based upon the foregoing, the
Receiver has determined that the
continued existence of the receivership
will serve no useful purpose.
Consequently, notice is given that the
receivership shall be terminated, to be
effective no sooner than thirty days after
the date of this Notice. If any person
wishes to comment concerning the
termination of the receivership, such
comment must be made in writing and
sent within thirty days of the date of
this Notice to: Federal Deposit
Insurance Corporation, Division of
Resolutions and Receiverships,
Attention: Receivership Oversight
Department 32.1, 1601 Bryan Street,
Dallas, TX 75201.
No comments concerning the
termination of this receivership will be
considered which are not sent within
this time frame.
Federal Deposit Insurance Corporation
Dated: December 17, 2013.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2013–30326 Filed 12–19–13; 8:45 am]
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Board of Governors of the
Federal Reserve System.
SUMMARY: Notice is hereby given of the
final approval of a proposed information
collection by the Board of Governors of
the Federal Reserve System (Board)
under OMB delegated authority,
pursuant to 5 CFR 1320.16 (OMB
Regulations on Controlling Paperwork
Burdens on the Public). Board-approved
collections of information are
incorporated into the official OMB
inventory of currently approved
collections of information. Copies of the
Paperwork Reduction Act Submission,
supporting statements and approved
collection of information instrument(s)
are placed into OMB’s public docket
files. The Federal Reserve may not
conduct or sponsor, and the respondent
is not required to respond to, an
information collection that has been
extended, revised, or implemented on or
after October 1, 1995, unless it displays
a currently valid OMB control number.
FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance
Officer—Cynthia Ayouch—Office of the
Chief Data Officer, Board of Governors
of the Federal Reserve System,
Washington, DC 20551 (202) 452–3829.
Telecommunications Device for the
Deaf (TDD) users may contact (202)
263–4869, Board of Governors of the
Federal Reserve System, Washington,
DC 20551.
OMB Desk Officer—Shagufta
Ahmed—Office of Information and
Regulatory Affairs, Office of
Management and Budget, New
Executive Office Building, Room 10235,
725 17th Street NW., Washington, DC
20503.
Final approval under OMB delegated
authority the revision, without
extension, of the following report:
Report title: Banking Organization
Systemic Risk Report.
Agency form number: FR Y–15.
OMB Control number: 7100–0352.
Effective Date: December 31, 2013.
Frequency: Annually.
Reporters: U.S. Bank Holding
Companies (BHCs) with total
consolidated assets of $50 billion or
AGENCY:
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TX
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more, and any U.S.-based organizations
identified as global systemically
important banks (GSIBs) that do not
otherwise meet the consolidated assets
threshold for BHCs.
Estimated annual reporting hours:
9,735 hours.
Estimated average hours per response:
295 hours.
Number of respondents: 33.
General description of report: This
information collection is mandatory
pursuant to section 5 of the BHC Act (12
U.S.C. 1844(c)). Except as otherwise
noted, the collected information will be
made available to the public for report
dates beginning December 31, 2013. The
following line items will be kept
confidential for the December 31, 2013,
report date and made publically
available beginning with the December
31, 2014, report date: Schedule A, items
1(b)(2) through 2(a)(2) and items 2(b)(2)
through 3; and, Schedule C, items 1(a)
through 1(l). The following line items
will be kept confidential until the first
reporting date after the U.S. rule
implementing the liquidity coverage
ratio (LCR) is finalized: Schedule D,
items 7 and 8.
Though confidential treatment will
not be routinely given to the financial
data in this report, respondents may
request such treatment for any
information that they believe is subject
to an exemption from disclosure
pursuant to sections (b)(4), (b)(6), or
(b)(8) of the Freedom of Information Act
(FOIA) (5 U.S.C. 522(b)(4), (b)(6), and
(b)(8)).
Abstract: The FR Y–15, which was
derived from a Basel data collection
aimed at measuring systemic
importance, was implemented in
December 2012 (77 FR 76484). In
addition to (i) facilitating the future
implementation of the GSIB surcharge
through regulation, (ii) identifying
institutions that may be domestic
systemically important banks (DSIBs)
under a future framework and (iii)
analyzing the systemic risk implications
of proposed mergers and acquisitions,
the Federal Reserve uses the FR Y–15
data to monitor, on an ongoing basis, the
systemic risk profile of the institutions
which are subject to enhanced
prudential standards under section 165
of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (DFA).
Current Actions: On August 30, 2013,
the Federal Reserve published a notice
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in the Federal Register (78 FR 53759)
requesting public comment for 60 days
on the proposal to revise, without
extension, the mandatory annual
Banking Organization Systemic Risk
Report. The comment period for this
notice expired on October 29, 2013.
Summary of Public Comments: The
Federal Reserve received three comment
letters on the proposed revisions to the
FR Y–15: a joint comment letter from
three trade associations, another
comment letter from a different trade
association, and a comment letter from
a banking organization. The comments
focused on the confidential treatment of
data submitted on the FR Y–15
(partially with respect to items based on
the Basel liquidity coverage ratio) and
the submission deadline. Several
commenters suggested that the Federal
Reserve rely on other existing data
collections in order to reduce reporting
burden. Other comments expressed
concern about using Basel II credit
conversion factor (CCF) definitions for
off-balance sheet items. Commenters
requested delayed implementation of
the requirements, elimination of the
attestation requirement, and continued
confidential treatment of certain FR Y–
15 data. The following is a detailed
discussion of the comments received
and the Federal Reserve’s responses to
those comments.
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Detailed Discussion of Public
Comments and Federal Reserve
Responses
A. Reporting Panel
The proposal stated that the FR Y–15
will be used to monitor, on an ongoing
basis, the systemic risk profile of the
institutions which are subject to
enhanced prudential standards under
section 165 of DFA. The proposal
further stated that the data will be used
to facilitate the future implementation
of the GSIB surcharge through
regulation, identify institutions that may
be DSIBs under a future framework, and
analyze the systemic risk implications
of proposed mergers and acquisitions.
One commenter suggested the reporting
panel is not appropriate because BHCs
that are subsidiaries of foreign banking
organizations (FBOs) are not subject to
the GSIB framework and the DSIB and
mergers and acquisitions frameworks
are still under development. Another
commenter similarly argued that the
international GSIB framework by its
terms is not applicable to non-GSIBs
and is not practical for DSIB
identification. One commenter
suggested that there is no meaningful
comparison between top-tier BHCs and
the BHC subsidiaries of FBOs, because
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the former is the top-tier company of the
entire consolidated organization while
the latter is a subsidiary that includes
only part of the entire consolidated
organization’s operations.
The Federal Reserve’s data collections
may be implemented independent of a
related final regulatory framework. As a
host of metrics have been identified for
examining the systemic risk of banking
organizations, it is incumbent upon
national supervisors to collect and
monitor such data so as to better
understand the overall domestic
systemic risk landscape and pinpoint
the riskiest institutions therein. Indeed,
monitoring the systemic risk profile of
institutions subject to section 165 of
DFA is one of the main purposes of
collecting the FR Y–15. Therefore, the
Federal Reserve believes it is
appropriate to apply the FR Y–15
requirements at this time to institutions
that are not GSIBs but may be identified
as DSIBs, even though a regulatory
framework for DSIBs has not been
proposed or implemented. The Federal
Reserve further notes that the use of
data for analyzing mergers and
acquisitions will frequently be
incorporated into an already-established
applications process.
With respect to application of the
requirements to the U.S. subsidiaries of
FBOs, the Federal Reserve observes that
the FR Y–15 evaluates the systemic risk
footprint of these BHCs in a domestic
context. Since the global systemic
footprint of the entire FBO extends
beyond that of its U.S. BHC subsidiary,
the FR Y–15 does not capture the full
systemic risk implications of the global
entity. Instead, the FR Y–15
appropriately focuses on the domestic
systemic footprint of large U.S. BHCs
owned by FBOs. These U.S. BHC
subsidiaries are similarly situated in
size and complexity to other U.S. BHCs
that are subject to the reporting panel.
As such, these subsidiaries may have
systemic factors of sufficient magnitude
to pose a systemic risk to the U.S.
financial system. Therefore, the Federal
Reserve will continue to include on the
FR Y–15 reporting panel those U.S. BHC
subsidiaries of FBOs that meet the
threshold for scope of application.
B. Alternative Sources of Systemic Risk
Data
Several commenters suggested that
information obtained from other data
collections such as the Capital
Assessments and Stress Testing report
(FR Y–14; OMB No. 7100–0341) or the
proposed Liquidity Monitoring Reports
(FR 2052a and b) could be used in lieu
of collecting certain data on the FR Y–
15. The commenters argued that using
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such data would reduce reporting
burden.
The Federal Reserve notes that the
information collected on the FR Y 15
provides a baseline set of metrics that
are used to assess and compare the
systemic risk profiles of reporting firms.
In order to make reliable comparisons,
the data must be produced using a
common set of definitions. Therefore,
substituting data with information
subject to different underlying
definitions would weaken the ability to
make reliable comparisons and could
lead to false conclusions about relative
systemic risk. Other than those items
specifically noted in the instructions
(see General Instructions, Section H),
the FR Y–15 data are unique and thus
cannot be replaced with data from
another regulatory report. Therefore, the
Federal Reserve will not use other data
collections in lieu of collecting data on
the FR Y–15. However, as relevant data
does become available on other public
regulatory reports, the Federal Reserve
will revise the FR Y–15 at that time to
automatically import these data.
C. Confidentiality
In the final 2012 Federal Register
notice, the Federal Reserve indicated
that the FR Y–15 data would be made
public via the FFIEC Web site because
the data provides valuable information
about the domestic systemic risk
landscape and the market can use the
measures of systemic risk found in the
FR Y–15 to evaluate the systemic
importance of an individual institution
on a national level.1 The Federal
Reserve further stated that the public
disclosure of the data would promote
the policy goal of transparency for
future systemic risk assessments,
including through international efforts
such as GSIB designation by the
Financial Stability Board (FSB).2
Following publication of the final
2012 Federal Register notice, the
Federal Reserve received additional
requests from an industry group and
several individual institutions to keep
parts of the FR Y–15 confidential. The
Federal Reserve decided to publicly
release data on the FR Y–15 that is
published in aggregate form or retrieved
from public portions of the
Consolidated Financial Statements for
Bank Holding Companies (FR Y–9C;
OMB No. 7100–0128). This decision
was based on various considerations,
including that the report was being
implemented for the first time and that
the reporting panel for year-end 2012
1 See
77 FR 76484, 76486 (December 28, 2012).
2 Id.
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was limited to a small subset of the total
reporting panel.
In the notice of proposed revisions,
the Federal Reserve stated that the data
items on the FR Y–15 that are retrieved
from the public portions of the FR Y–
9C or that are published only in
aggregate form are not confidential, and
that the confidentiality of the remaining
items would depend on a determination
that considers the competitive harm
resulting from the disclosure and the
public purpose served by the
disclosure.3
Several commenters requested that
the Federal Reserve continue to release
publicly only the items that were
released for the 2012 submissions. In
particular, a commenter asked that the
Federal Reserve continue this treatment
until rules on which the reporting items
are based are finalized and fully
implemented in the United States. The
commenter also requested that the
Federal Reserve clarify its intentions as
to what reported information it intends
to release as public information going
forward. Additionally, one commenter
referenced the Basel Committee on
Banking Supervision’s (BCBS’s) practice
of keeping data submitted in connection
with the Basel III monitoring exercise
confidential. The commenter asserted
that publishing the data would put
reporting institutions at a competitive
disadvantage since institutions outside
of the U.S. are not subject to the same
requirements. The commenter also
argued that new data elements may
confuse investors. Another commenter
stated that FR Y–9C confidentiality
automatically passes through to the FR
Y–15 but that Country Exposure Report
(FFIEC 009; OMB No. 7100–0035)
confidentiality does not.
In evaluating the concerns raised by
commenters, the Federal Reserve
considered the potential public harm
from releasing data reported on the FR
Y–15 that was not released for the 2012
submissions, along with the public
purposes that would be served by
additional disclosure. The Federal
Reserve believes that the FR Y–15 data
provides consistent and comparable
measures of systemic risk which can be
used by market participants to evaluate
the systemic importance of an
institution. Moreover, the Federal
Reserve believes that access to the
underlying data is integral to
understanding the drivers of the
aggregated systemic risk metrics. For
example, the total intra-financial system
assets metric (Schedule B, item 6) is
comprised of eleven subcomponents.
Without the more granular data, it may
3 See
78 FR 53760 (August 30, 2013).
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be difficult to fully assess whether the
planned actions of a firm would lead to
a material reduction of the metric in
future periods. In addition, the Federal
Reserve believes that the data is key to
the public understanding how the
systemic nature of BHCs subject to
section 165 of DFA is evaluated,
including how enhanced prudential
standards are applied to these BHCs in
accordance with their relative systemic
importance. Furthermore, the Federal
Reserve believes that providing the
underlying data increases transparency
and, in turn, market discipline regarding
systemic risk. Release of the data should
encourage a market discipline that
reduces the negative externalities
associated with raising a firm’s systemic
footprint. This market discipline should
be particularly acute once the regulatory
policies regarding systemic risk are
finalized.
However, the Federal Reserve believes
it is reasonable to delay the public
release of certain data items about
which commenters have specifically
expressed concern. As noted above,
commenters asked that the Federal
Reserve not release information beyond
what was released for the 2012
submissions until such time as the rules
on which the reporting is based are
finalized and fully implemented in the
United States.
The Federal Reserve believes that it is
appropriate to delay, until the 2014
reporting period, the public release of
non-aggregate Schedule A (size
indicator) items that are not derived
from public portions of the FR Y–9C.
This information is correspondent or
related to the information that U.S.
BHCs subject to the Federal Reserve’s
advanced approaches framework
(advanced approaches BHCs) will report
beginning in 2015 on the revised FR Y–
9C and the revised Risk-Based Capital
Reporting for Institutions Subject to the
Advanced Capital Adequacy Framework
(FFIEC 101; OMB No. 7100–0319). This
reported information is related to the
international (supplementary) leverage
ratio requirement and other
requirements in the Federal Reserve’s
revised capital rule (12 CFR part 217),
adopted in 2013 (capital rule).4 Since
advanced approaches BHCs will be
reporting this information quarterly on
the FR Y–9C and FFIEC 101 in 2015,
delaying the release of the associated
information on the FR Y–15 until the
2014 reporting period will better align
the public disclosure of the information
across the multiple reports. In addition,
this will provide additional time for
respondents to ensure that consistent
4 78
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FR 62018 (October 11, 2013).
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and comparable data is provided across
reports. The Federal Reserve believes
that it is appropriate for the delayed
disclosure to also apply to BHCs that are
not advanced approaches BHCs. As with
the advanced approaches BHCs, the
delay will allow these institutions to
fully develop their systems and refine
the accuracy of the data associated with
the FR Y–15 and the 2015 capitalrelated reporting requirements. Thus,
the aggregated total exposures figure
and those items derived from public
portions of the FR Y–9C will be the only
Schedule A items released for the 2013
reporting period.
As discussed further below, most of
the Schedule D line items related to the
BCBS LCR will no longer be collected
on the FR Y–15. The two items that
remain identify a subset of trading and
available-for-sale (AFS) assets as level 1
or level 2 assets under the BCBS
standard. These items are necessary to
calculate consistently across
jurisdictions the systemic importance of
a reporting institution’s trading and AFS
portfolio. The Federal Reserve observes
that these items could be estimated from
publicly-available FR Y–9C data and
that these items are not equivalent to an
institution’s liquidity buffer as
calculated under the BCBS LCR, or
under the U.S. proposed
implementation of the LCR which was
released as a notice of proposed
rulemaking earlier in 2013.5 However,
considering commenter concerns that
there could be market confusion with
respect to these line items while the
rulemaking to implement the LCR is
ongoing, the Federal Reserve will delay
disclosure of those two line items until
the U.S. rulemaking is finalized. In
addition, after the U.S. rule
implementing the LCR is finalized, the
Federal Reserve will consider aligning
the definitions of level 1 and level 2
assets used in the two items of the FR
Y–15 with the definitions in the U.S.
rule.
The Federal Reserve will also delay
the disclosure of items on Schedule C
that specify payments activity in
individual currencies until the 2014
reporting period. Some institutions have
expressed concern about publicly
releasing these new reporting items. The
Federal Reserve has observed that these
items have been among the most
difficult for institutions to collect and
believes it is reasonable to keep this
information confidential for an
additional year while reporting
institutions continue to develop and
enhance their reporting capabilities for
these items. By adopting this delay, the
5 See
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78 FR 71818 (November 29, 2013).
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two aggregated payments figures will be
the only payments data released for the
2013 reporting period.
Thus, except for the items on
Schedules A, C, and D that are subject
to delayed release as outlined above, all
FR Y–15 data will be made available to
the public beginning with the 2013
reporting period. To address concerns
about potential misinterpretation of
these data, the Federal Reserve will give
respondents the opportunity to provide
an optional narrative as part of their FR
Y–15 submission. This will allow
respondents to include brief explanatory
comments about any data disclosure
within the report which they feel may
be subject to misinterpretation or
otherwise cause confusion among
investors. These statements will be
made available to the public.
With respect to confidential treatment
passing through to the FR Y–15, this is
limited to the cases where specific line
item confidentiality has been granted for
a related item on the FR Y–9C (see
General Instructions, Section H). This
automated pass-through does not apply
to items pulled from confidential
reports. The Federal Reserve specifically
decided to make the highly aggregated
item pulled from the FFIEC 009 publicly
available on the FR Y–15 (Schedule E,
item 1) because it is a high-level,
aggregate number that, if nonzero, does
not reveal any of the actual underlying
values included in the FFIEC 009
report.6
D. Submission Deadline
The Federal Reserve approved an
initial submission window of 90 days
for those institutions submitting the FR
Y–15 for the December 31, 2012, as-ofdate.7 This was done to allow extra time
for the eight initial respondents to
develop and test the systems required to
collect the FR Y–15 data. Several
commenters suggested keeping the
submission date at 90 calendar days
after the December 31 as-of-date. One
commenter argued that more time is
needed since the same staff work on the
FR Y–9C and the FR Y–14. This
commenter supported the switch to a
June 30 determination date.
An ongoing window of 60 days after
the as-of-date for FR Y–15 submissions,
beginning with the December 31, 2013,
as-of-date, was approved by the Federal
Reserve last year.8 This is 15 days
beyond the deadline associated with the
FR Y–9C and 10 days beyond the
deadline associated with the FFIEC 009,
which are both source documents for
6 See
77 FR 76486 (December 28, 2012).
7 Id.
8 Id.
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the FR Y–15. This staggered submission
schedule made it easier for banks to
ensure that the forms properly
reconciled. The 60 day window was
chosen, in part, based on the
recommendations of several
commenters on the first FR Y–15
proposal in 2012.
Considering the fact that several
regulatory reports are due 60 days after
the December 31 as-of-date,9 the Federal
Reserve will extend the submission
window to 65 days. This should ease
potential resource constraints while
simultaneously ensuring the timely
availability of the systemic risk data.
E. Implementation Issues for New
Respondents
Two commenters noted that several
off-balance sheet items use CCF
categories defined under the
standardized approach of the Basel II
agreement 10 as modified by the Basel III
agreement and published by the BCBS.
They argued that this creates an undue
burden on reporters and seems
unnecessary considering the recently
finalized capital rule (final capital
rule) 11 that includes a standardized
approach based on the BCBS standards.
One commenter recommended not
requiring the reporting of these items for
advanced approaches institutions.
Another commenter recommended
making all new reporters exempt from
reporting any data items connected to
the BCBS Basel III implementation
monitoring exercise.
With respect to CCFs, there are minor
differences between Basel II
standardized and the final capital rule.
In general, these differences are only
material for a few large institutions and
in each case the calculation is relatively
simple and straightforward. Moreover,
the global systemic score under the
GSIB framework is calculated using the
standardized approach of the Basel II
agreement. For these reasons, the FR Y–
15 will continue to use the Basel II CCF
definitions.
For the reasons discussed further in
the Specific Data Items section below,
the Federal Reserve will remove the
three items on the FR Y–15 with explicit
links to the Basel III implementation
monitoring exercise.
9 Examples of reports due 60 days after December
31 include the FFIEC 101 and Form 10–K (10–K;
OMB No. 3235–0063).
10 See paragraphs 83 through 85 of International
Convergence of Capital Measurement and Capital
Standards, June 2006, available at https://
www.bis.org/publ/bcbs128.pdf.
11 78 FR 62018 (October 11, 2013).
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F. Attestation Requirement and
Estimated Data
The FR Y–15 attestation page states
‘‘I, the undersigned CFO (or equivalent)
of the named banking organization,
attest that the Banking Organization
Systemic Risk Report (including the
supporting schedules) for this report
date has been prepared in conformance
with the instructions issued by the
Federal Reserve System and is true and
correct to the best of my knowledge and
belief.’’ One commenter recommended
allowing first-time reporters in 2013 to
use reasonable estimates. They
recommended that the allowance be
made explicit in the instructions and on
the attestation page. Another commenter
asserted that the Chief Financial Officer
(or equivalent) should not have to attest
to data that will tie to a future
rulemaking until the rule is actually
finalized. The commenter further argued
that respondents need ample notice and
experience with the data before attesting
and that the data should be collected on
a best efforts basis until firms have
gained more experience with the report.
Reasonable estimates are already
allowed when the institution is filing
the report for the first time. This fact is
explicitly captured in the instructions
(see General Instructions, Section F).
The attestation page on the reporting
form states that the report has been
‘‘prepared in conformance with the
instructions issued by the Federal
Reserve System.’’ As the reasonable
estimates clause for first-time reporters
is clearly specified in the instructions,
it is not necessary to repeat the clause
in the attestation itself. Thus, the
Federal Reserve will retain the current
attestation language.
The Federal Reserve does not believe
that the ability to attest data must be
linked to the publication of a related
final regulatory requirement. Detailed
instructions are provided to respondents
and Federal Reserve Bank staff are
available to answer questions pertaining
to the collection. The Federal Reserve
believes that these resources, which
mirror those that are available for other
collections including the FR Y–9C, are
sufficient to allow for the attestation of
the FR Y–15. The Federal Reserve agrees
that respondents need advanced notice
of a reporting requirement in order to
build adequate collection and validation
systems. The Federal Reserve,
recognizing that smaller BHCs would
require additional time to collect and
audit the FR Y–15 data, limited the
initial reporting panel to the eight U.S.
GSIBs.12 This provided an additional
12 See
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77 FR 76484 (December 28, 2012).
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year for the other respondents to
prepare for the new reporting
requirement. Given the advanced notice
and the resources available, the Federal
Reserve will retain the current
attestation requirement.
G. Specific Data Items
One commenter argued that
disclosure of the items associated with
the LCR could expose respondents to
risks under U.S. securities laws because
they are not based on a final regulatory
standard. The commenter also argued
that the market will inappropriately use
the LCR-related data to assess the
liquidity positions of respondents.
Another commenter noted that liquidity
rules would not be in effect until 2015
and suggested that the items related to
liquidity not be collected until the final
rules take effect.
The BCBS recently adopted a revised
systemic risk calculation that no longer
uses the LCR items collected in the
previous version of the report. Taking
into consideration this revision along
with the comments received, the
Federal Reserve will remove the
following six items from Schedule D:
Level 1 assets, subject to operational
requirements; Securities in item 7 that
are trading or AFS securities; Level 2
assets, with haircuts and subject to
operational requirements; Securities in
item 8 that are trading or AFS securities;
Adjustment to high quality liquid assets
(HQLA) due to caps on Level 2B and
total Level 2 assets; and Amount of item
9 attributable to trading and AFS
securities. The two LCR-related items
that remain reflect the liquidity of the
bank’s trading and AFS securities.
These items are not subject to the same
confidentiality concerns since they can
be reasonably estimated based on public
FR Y–9C data.13 The Federal Reserve
believes this more limited disclosure
mitigates the risk of market participants
trying to use systemic risk measures on
the FR Y–15 to assess a firm’s liquidity
position. To avoid any potential
misinterpretation, the Federal Reserve
will remove the reference to HQLA in
one of the remaining items (Total
trading and AFS securities less HQLA).
One commenter asked that a de
minimis exemption be considered for
line items unique to the FR Y–15. Due
to the rounding rules specified in the
instructions (see General Instructions,
Section C), amounts less than $500,000
are not reported when respondents
choose to report their figures in
millions. Therefore, a de minimis
exemption already exists within the
13 FR Y–9C schedules HC–B and HC–D provide
category breakdowns of AFS and trading securities.
VerDate Mar<15>2010
16:44 Dec 19, 2013
Jkt 232001
report. This exemption will be left
unchanged.
Commenters asked for a number of
technical clarifications regarding
specific data items on the FR Y–15 form.
The Federal Reserve has addressed
these questions in the finalized version
of the FR Y–15 instructions.
Board of Governors of the Federal Reserve
System, December 17, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013–30309 Filed 12–19–13; 8:45 am]
BILLING CODE 6210–01–P
GENERAL SERVICES
ADMINISTRATION
[Notice–MX–2013–01; Docket No. 2013–
0002; Sequence 39]
Notification of a Public Meeting of the
Government Accountability and
Transparency Board
Office of Government-wide
Policy, General Services Administration
(GSA).
ACTION: Meeting Notice.
AGENCY:
The Government
Accountability and Transparency (GAT)
Board will host a meeting for the public
to make presentations to the Board, as
indicated below. This notice is intended
to notify the general public,
representatives of state and local
governments, civic and professional
organizations, and other interested
parties, of the opportunity to present
material to the Board and attend the
meeting.
DATES: The GAT Board meeting will be
held on January 22, 2014, in two
sessions: The first session will occur
from 9:00 a.m. to 12:00 p.m. Eastern
Standard Time; the second session will
be 1:30 p.m. to 4:30 p.m. Eastern
Standard Time. The second session is
for overflow purposes and will be
cancelled without further notice, if
responses to this notice lead the
Chairperson of the GAT Board to
determine the first session’s timeframes
are sufficient.
ADDRESSES: General Services
Administration National Capital Region
(NCR) Regional Office Building (ROB)
Auditorium, 301 7th Street, SW.,
Washington, DC 20407. The GSA
auditorium is located on the first floor
of the building.
FOR FURTHER INFORMATION CONTACT: Ms.
Nancy DiPaolo, Chief, Congressional
and Intergovernmental Affairs, Recovery
Board, 1717 Pennsylvania Avenue NW.,
Suite 700, Washington, DC 20006;
Telephone 202–254–7900.
SUMMARY:
PO 00000
Frm 00039
Fmt 4703
Sfmt 4703
SUPPLEMENTARY INFORMATION:
Background: The Government
Accountability and Transparency
Board’s mandate appears in Executive
Order 13576 (June 13, 2011), which in
short states that the Board shall:
• Provide strategic direction for
enhancing transparency of federal
spending and advance efforts to detect
and remediate fraud, waste, and abuse
in federal programs; and
• Work with the Recovery
Accountability and Transparency Board
(RATB) to build on lessons learned and
apply the approaches developed by the
RATB across federal spending.
Agenda: The purpose of the January
22, 2014 meeting is to allow the public
to make presentations to the GAT Board
regarding accountability and
transparency for federal expenditures
made through contracts and grants.
The GAT Board Chairman will make
a brief opening statement. The rest of
the meeting will feature presentations
by members of the public on the
following:
1. Who do you represent?
2. What questions are you trying to
answer with federal spending
information?
3. What federal spending information
do you need to answer these questions?
4. Where do you find that federal
spending information now?
5. Where does federal spending
information need clearer instructions or
explanations?
6. What suggestions do you have for
prioritizing federal spending
information enhancements?
The GAT Board is collecting this
information at the meeting for strategic
advisory purposes, to help the Board in
developing its annual plan (Calendar
Year 2014 Way Forward document).
Note that the Board is not a decisionmaking body, nor does it have funding
and staff. The Board provides strategic
advice to interagency working groups.
Procedures for notifying the Board of
attendance: Persons wishing to attend
the meeting should email their names
and represented organization (or
indicate ‘‘self’’) to federaltransparency@
ratb.gov and write ‘‘January 22, 2014
GAT Board RSVP’’ in the subject line.
Street Address: You may submit your
RSVP by mail to 1717 Pennsylvania
Avenue NW., Suite 700, Washington,
DC 20006. ‘‘GAT Board public meeting
RSVP’’ should be written on the
envelope.
Procedures for submitting public
comments or presentation materials: In
addition to notifying the Board of
attendance, persons wishing to present
to the GAT Board at the meeting should
email their written comments and/or
E:\FR\FM\20DEN1.SGM
20DEN1
Agencies
[Federal Register Volume 78, Number 245 (Friday, December 20, 2013)]
[Notices]
[Pages 77128-77132]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30309]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: Notice is hereby given of the final approval of a proposed
information collection by the Board of Governors of the Federal Reserve
System (Board) under OMB delegated authority, pursuant to 5 CFR 1320.16
(OMB Regulations on Controlling Paperwork Burdens on the Public).
Board-approved collections of information are incorporated into the
official OMB inventory of currently approved collections of
information. Copies of the Paperwork Reduction Act Submission,
supporting statements and approved collection of information
instrument(s) are placed into OMB's public docket files. The Federal
Reserve may not conduct or sponsor, and the respondent is not required
to respond to, an information collection that has been extended,
revised, or implemented on or after October 1, 1995, unless it displays
a currently valid OMB control number.
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance
Officer--Cynthia Ayouch--Office of the Chief Data Officer, Board of
Governors of the Federal Reserve System, Washington, DC 20551 (202)
452-3829.
Telecommunications Device for the Deaf (TDD) users may contact
(202) 263-4869, Board of Governors of the Federal Reserve System,
Washington, DC 20551.
OMB Desk Officer--Shagufta Ahmed--Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 10235, 725 17th Street NW., Washington, DC 20503.
Final approval under OMB delegated authority the revision, without
extension, of the following report:
Report title: Banking Organization Systemic Risk Report.
Agency form number: FR Y-15.
OMB Control number: 7100-0352.
Effective Date: December 31, 2013.
Frequency: Annually.
Reporters: U.S. Bank Holding Companies (BHCs) with total
consolidated assets of $50 billion or more, and any U.S.-based
organizations identified as global systemically important banks (GSIBs)
that do not otherwise meet the consolidated assets threshold for BHCs.
Estimated annual reporting hours: 9,735 hours.
Estimated average hours per response: 295 hours.
Number of respondents: 33.
General description of report: This information collection is
mandatory pursuant to section 5 of the BHC Act (12 U.S.C. 1844(c)).
Except as otherwise noted, the collected information will be made
available to the public for report dates beginning December 31, 2013.
The following line items will be kept confidential for the December 31,
2013, report date and made publically available beginning with the
December 31, 2014, report date: Schedule A, items 1(b)(2) through
2(a)(2) and items 2(b)(2) through 3; and, Schedule C, items 1(a)
through 1(l). The following line items will be kept confidential until
the first reporting date after the U.S. rule implementing the liquidity
coverage ratio (LCR) is finalized: Schedule D, items 7 and 8.
Though confidential treatment will not be routinely given to the
financial data in this report, respondents may request such treatment
for any information that they believe is subject to an exemption from
disclosure pursuant to sections (b)(4), (b)(6), or (b)(8) of the
Freedom of Information Act (FOIA) (5 U.S.C. 522(b)(4), (b)(6), and
(b)(8)).
Abstract: The FR Y-15, which was derived from a Basel data
collection aimed at measuring systemic importance, was implemented in
December 2012 (77 FR 76484). In addition to (i) facilitating the future
implementation of the GSIB surcharge through regulation, (ii)
identifying institutions that may be domestic systemically important
banks (DSIBs) under a future framework and (iii) analyzing the systemic
risk implications of proposed mergers and acquisitions, the Federal
Reserve uses the FR Y-15 data to monitor, on an ongoing basis, the
systemic risk profile of the institutions which are subject to enhanced
prudential standards under section 165 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (DFA).
Current Actions: On August 30, 2013, the Federal Reserve published
a notice
[[Page 77129]]
in the Federal Register (78 FR 53759) requesting public comment for 60
days on the proposal to revise, without extension, the mandatory annual
Banking Organization Systemic Risk Report. The comment period for this
notice expired on October 29, 2013.
Summary of Public Comments: The Federal Reserve received three
comment letters on the proposed revisions to the FR Y-15: a joint
comment letter from three trade associations, another comment letter
from a different trade association, and a comment letter from a banking
organization. The comments focused on the confidential treatment of
data submitted on the FR Y-15 (partially with respect to items based on
the Basel liquidity coverage ratio) and the submission deadline.
Several commenters suggested that the Federal Reserve rely on other
existing data collections in order to reduce reporting burden. Other
comments expressed concern about using Basel II credit conversion
factor (CCF) definitions for off-balance sheet items. Commenters
requested delayed implementation of the requirements, elimination of
the attestation requirement, and continued confidential treatment of
certain FR Y-15 data. The following is a detailed discussion of the
comments received and the Federal Reserve's responses to those
comments.
Detailed Discussion of Public Comments and Federal Reserve Responses
A. Reporting Panel
The proposal stated that the FR Y-15 will be used to monitor, on an
ongoing basis, the systemic risk profile of the institutions which are
subject to enhanced prudential standards under section 165 of DFA. The
proposal further stated that the data will be used to facilitate the
future implementation of the GSIB surcharge through regulation,
identify institutions that may be DSIBs under a future framework, and
analyze the systemic risk implications of proposed mergers and
acquisitions. One commenter suggested the reporting panel is not
appropriate because BHCs that are subsidiaries of foreign banking
organizations (FBOs) are not subject to the GSIB framework and the DSIB
and mergers and acquisitions frameworks are still under development.
Another commenter similarly argued that the international GSIB
framework by its terms is not applicable to non-GSIBs and is not
practical for DSIB identification. One commenter suggested that there
is no meaningful comparison between top-tier BHCs and the BHC
subsidiaries of FBOs, because the former is the top-tier company of the
entire consolidated organization while the latter is a subsidiary that
includes only part of the entire consolidated organization's
operations.
The Federal Reserve's data collections may be implemented
independent of a related final regulatory framework. As a host of
metrics have been identified for examining the systemic risk of banking
organizations, it is incumbent upon national supervisors to collect and
monitor such data so as to better understand the overall domestic
systemic risk landscape and pinpoint the riskiest institutions therein.
Indeed, monitoring the systemic risk profile of institutions subject to
section 165 of DFA is one of the main purposes of collecting the FR Y-
15. Therefore, the Federal Reserve believes it is appropriate to apply
the FR Y-15 requirements at this time to institutions that are not
GSIBs but may be identified as DSIBs, even though a regulatory
framework for DSIBs has not been proposed or implemented. The Federal
Reserve further notes that the use of data for analyzing mergers and
acquisitions will frequently be incorporated into an already-
established applications process.
With respect to application of the requirements to the U.S.
subsidiaries of FBOs, the Federal Reserve observes that the FR Y-15
evaluates the systemic risk footprint of these BHCs in a domestic
context. Since the global systemic footprint of the entire FBO extends
beyond that of its U.S. BHC subsidiary, the FR Y-15 does not capture
the full systemic risk implications of the global entity. Instead, the
FR Y-15 appropriately focuses on the domestic systemic footprint of
large U.S. BHCs owned by FBOs. These U.S. BHC subsidiaries are
similarly situated in size and complexity to other U.S. BHCs that are
subject to the reporting panel. As such, these subsidiaries may have
systemic factors of sufficient magnitude to pose a systemic risk to the
U.S. financial system. Therefore, the Federal Reserve will continue to
include on the FR Y-15 reporting panel those U.S. BHC subsidiaries of
FBOs that meet the threshold for scope of application.
B. Alternative Sources of Systemic Risk Data
Several commenters suggested that information obtained from other
data collections such as the Capital Assessments and Stress Testing
report (FR Y-14; OMB No. 7100-0341) or the proposed Liquidity
Monitoring Reports (FR 2052a and b) could be used in lieu of collecting
certain data on the FR Y-15. The commenters argued that using such data
would reduce reporting burden.
The Federal Reserve notes that the information collected on the FR
Y 15 provides a baseline set of metrics that are used to assess and
compare the systemic risk profiles of reporting firms. In order to make
reliable comparisons, the data must be produced using a common set of
definitions. Therefore, substituting data with information subject to
different underlying definitions would weaken the ability to make
reliable comparisons and could lead to false conclusions about relative
systemic risk. Other than those items specifically noted in the
instructions (see General Instructions, Section H), the FR Y-15 data
are unique and thus cannot be replaced with data from another
regulatory report. Therefore, the Federal Reserve will not use other
data collections in lieu of collecting data on the FR Y-15. However, as
relevant data does become available on other public regulatory reports,
the Federal Reserve will revise the FR Y-15 at that time to
automatically import these data.
C. Confidentiality
In the final 2012 Federal Register notice, the Federal Reserve
indicated that the FR Y-15 data would be made public via the FFIEC Web
site because the data provides valuable information about the domestic
systemic risk landscape and the market can use the measures of systemic
risk found in the FR Y-15 to evaluate the systemic importance of an
individual institution on a national level.\1\ The Federal Reserve
further stated that the public disclosure of the data would promote the
policy goal of transparency for future systemic risk assessments,
including through international efforts such as GSIB designation by the
Financial Stability Board (FSB).\2\
---------------------------------------------------------------------------
\1\ See 77 FR 76484, 76486 (December 28, 2012).
\2\ Id.
---------------------------------------------------------------------------
Following publication of the final 2012 Federal Register notice,
the Federal Reserve received additional requests from an industry group
and several individual institutions to keep parts of the FR Y-15
confidential. The Federal Reserve decided to publicly release data on
the FR Y-15 that is published in aggregate form or retrieved from
public portions of the Consolidated Financial Statements for Bank
Holding Companies (FR Y-9C; OMB No. 7100-0128). This decision was based
on various considerations, including that the report was being
implemented for the first time and that the reporting panel for year-
end 2012
[[Page 77130]]
was limited to a small subset of the total reporting panel.
In the notice of proposed revisions, the Federal Reserve stated
that the data items on the FR Y-15 that are retrieved from the public
portions of the FR Y-9C or that are published only in aggregate form
are not confidential, and that the confidentiality of the remaining
items would depend on a determination that considers the competitive
harm resulting from the disclosure and the public purpose served by the
disclosure.\3\
---------------------------------------------------------------------------
\3\ See 78 FR 53760 (August 30, 2013).
---------------------------------------------------------------------------
Several commenters requested that the Federal Reserve continue to
release publicly only the items that were released for the 2012
submissions. In particular, a commenter asked that the Federal Reserve
continue this treatment until rules on which the reporting items are
based are finalized and fully implemented in the United States. The
commenter also requested that the Federal Reserve clarify its
intentions as to what reported information it intends to release as
public information going forward. Additionally, one commenter
referenced the Basel Committee on Banking Supervision's (BCBS's)
practice of keeping data submitted in connection with the Basel III
monitoring exercise confidential. The commenter asserted that
publishing the data would put reporting institutions at a competitive
disadvantage since institutions outside of the U.S. are not subject to
the same requirements. The commenter also argued that new data elements
may confuse investors. Another commenter stated that FR Y-9C
confidentiality automatically passes through to the FR Y-15 but that
Country Exposure Report (FFIEC 009; OMB No. 7100-0035) confidentiality
does not.
In evaluating the concerns raised by commenters, the Federal
Reserve considered the potential public harm from releasing data
reported on the FR Y-15 that was not released for the 2012 submissions,
along with the public purposes that would be served by additional
disclosure. The Federal Reserve believes that the FR Y-15 data provides
consistent and comparable measures of systemic risk which can be used
by market participants to evaluate the systemic importance of an
institution. Moreover, the Federal Reserve believes that access to the
underlying data is integral to understanding the drivers of the
aggregated systemic risk metrics. For example, the total intra-
financial system assets metric (Schedule B, item 6) is comprised of
eleven subcomponents. Without the more granular data, it may be
difficult to fully assess whether the planned actions of a firm would
lead to a material reduction of the metric in future periods. In
addition, the Federal Reserve believes that the data is key to the
public understanding how the systemic nature of BHCs subject to section
165 of DFA is evaluated, including how enhanced prudential standards
are applied to these BHCs in accordance with their relative systemic
importance. Furthermore, the Federal Reserve believes that providing
the underlying data increases transparency and, in turn, market
discipline regarding systemic risk. Release of the data should
encourage a market discipline that reduces the negative externalities
associated with raising a firm's systemic footprint. This market
discipline should be particularly acute once the regulatory policies
regarding systemic risk are finalized.
However, the Federal Reserve believes it is reasonable to delay the
public release of certain data items about which commenters have
specifically expressed concern. As noted above, commenters asked that
the Federal Reserve not release information beyond what was released
for the 2012 submissions until such time as the rules on which the
reporting is based are finalized and fully implemented in the United
States.
The Federal Reserve believes that it is appropriate to delay, until
the 2014 reporting period, the public release of non-aggregate Schedule
A (size indicator) items that are not derived from public portions of
the FR Y-9C. This information is correspondent or related to the
information that U.S. BHCs subject to the Federal Reserve's advanced
approaches framework (advanced approaches BHCs) will report beginning
in 2015 on the revised FR Y-9C and the revised Risk-Based Capital
Reporting for Institutions Subject to the Advanced Capital Adequacy
Framework (FFIEC 101; OMB No. 7100-0319). This reported information is
related to the international (supplementary) leverage ratio requirement
and other requirements in the Federal Reserve's revised capital rule
(12 CFR part 217), adopted in 2013 (capital rule).\4\ Since advanced
approaches BHCs will be reporting this information quarterly on the FR
Y-9C and FFIEC 101 in 2015, delaying the release of the associated
information on the FR Y-15 until the 2014 reporting period will better
align the public disclosure of the information across the multiple
reports. In addition, this will provide additional time for respondents
to ensure that consistent and comparable data is provided across
reports. The Federal Reserve believes that it is appropriate for the
delayed disclosure to also apply to BHCs that are not advanced
approaches BHCs. As with the advanced approaches BHCs, the delay will
allow these institutions to fully develop their systems and refine the
accuracy of the data associated with the FR Y-15 and the 2015 capital-
related reporting requirements. Thus, the aggregated total exposures
figure and those items derived from public portions of the FR Y-9C will
be the only Schedule A items released for the 2013 reporting period.
---------------------------------------------------------------------------
\4\ 78 FR 62018 (October 11, 2013).
---------------------------------------------------------------------------
As discussed further below, most of the Schedule D line items
related to the BCBS LCR will no longer be collected on the FR Y-15. The
two items that remain identify a subset of trading and available-for-
sale (AFS) assets as level 1 or level 2 assets under the BCBS standard.
These items are necessary to calculate consistently across
jurisdictions the systemic importance of a reporting institution's
trading and AFS portfolio. The Federal Reserve observes that these
items could be estimated from publicly-available FR Y-9C data and that
these items are not equivalent to an institution's liquidity buffer as
calculated under the BCBS LCR, or under the U.S. proposed
implementation of the LCR which was released as a notice of proposed
rulemaking earlier in 2013.\5\ However, considering commenter concerns
that there could be market confusion with respect to these line items
while the rulemaking to implement the LCR is ongoing, the Federal
Reserve will delay disclosure of those two line items until the U.S.
rulemaking is finalized. In addition, after the U.S. rule implementing
the LCR is finalized, the Federal Reserve will consider aligning the
definitions of level 1 and level 2 assets used in the two items of the
FR Y-15 with the definitions in the U.S. rule.
---------------------------------------------------------------------------
\5\ See 78 FR 71818 (November 29, 2013).
---------------------------------------------------------------------------
The Federal Reserve will also delay the disclosure of items on
Schedule C that specify payments activity in individual currencies
until the 2014 reporting period. Some institutions have expressed
concern about publicly releasing these new reporting items. The Federal
Reserve has observed that these items have been among the most
difficult for institutions to collect and believes it is reasonable to
keep this information confidential for an additional year while
reporting institutions continue to develop and enhance their reporting
capabilities for these items. By adopting this delay, the
[[Page 77131]]
two aggregated payments figures will be the only payments data released
for the 2013 reporting period.
Thus, except for the items on Schedules A, C, and D that are
subject to delayed release as outlined above, all FR Y-15 data will be
made available to the public beginning with the 2013 reporting period.
To address concerns about potential misinterpretation of these data,
the Federal Reserve will give respondents the opportunity to provide an
optional narrative as part of their FR Y-15 submission. This will allow
respondents to include brief explanatory comments about any data
disclosure within the report which they feel may be subject to
misinterpretation or otherwise cause confusion among investors. These
statements will be made available to the public.
With respect to confidential treatment passing through to the FR Y-
15, this is limited to the cases where specific line item
confidentiality has been granted for a related item on the FR Y-9C (see
General Instructions, Section H). This automated pass-through does not
apply to items pulled from confidential reports. The Federal Reserve
specifically decided to make the highly aggregated item pulled from the
FFIEC 009 publicly available on the FR Y-15 (Schedule E, item 1)
because it is a high-level, aggregate number that, if nonzero, does not
reveal any of the actual underlying values included in the FFIEC 009
report.\6\
---------------------------------------------------------------------------
\6\ See 77 FR 76486 (December 28, 2012).
---------------------------------------------------------------------------
D. Submission Deadline
The Federal Reserve approved an initial submission window of 90
days for those institutions submitting the FR Y-15 for the December 31,
2012, as-of-date.\7\ This was done to allow extra time for the eight
initial respondents to develop and test the systems required to collect
the FR Y-15 data. Several commenters suggested keeping the submission
date at 90 calendar days after the December 31 as-of-date. One
commenter argued that more time is needed since the same staff work on
the FR Y-9C and the FR Y-14. This commenter supported the switch to a
June 30 determination date.
---------------------------------------------------------------------------
\7\ Id.
---------------------------------------------------------------------------
An ongoing window of 60 days after the as-of-date for FR Y-15
submissions, beginning with the December 31, 2013, as-of-date, was
approved by the Federal Reserve last year.\8\ This is 15 days beyond
the deadline associated with the FR Y-9C and 10 days beyond the
deadline associated with the FFIEC 009, which are both source documents
for the FR Y-15. This staggered submission schedule made it easier for
banks to ensure that the forms properly reconciled. The 60 day window
was chosen, in part, based on the recommendations of several commenters
on the first FR Y-15 proposal in 2012.
---------------------------------------------------------------------------
\8\ Id.
---------------------------------------------------------------------------
Considering the fact that several regulatory reports are due 60
days after the December 31 as-of-date,\9\ the Federal Reserve will
extend the submission window to 65 days. This should ease potential
resource constraints while simultaneously ensuring the timely
availability of the systemic risk data.
---------------------------------------------------------------------------
\9\ Examples of reports due 60 days after December 31 include
the FFIEC 101 and Form 10-K (10-K; OMB No. 3235-0063).
---------------------------------------------------------------------------
E. Implementation Issues for New Respondents
Two commenters noted that several off-balance sheet items use CCF
categories defined under the standardized approach of the Basel II
agreement \10\ as modified by the Basel III agreement and published by
the BCBS. They argued that this creates an undue burden on reporters
and seems unnecessary considering the recently finalized capital rule
(final capital rule) \11\ that includes a standardized approach based
on the BCBS standards. One commenter recommended not requiring the
reporting of these items for advanced approaches institutions. Another
commenter recommended making all new reporters exempt from reporting
any data items connected to the BCBS Basel III implementation
monitoring exercise.
---------------------------------------------------------------------------
\10\ See paragraphs 83 through 85 of International Convergence
of Capital Measurement and Capital Standards, June 2006, available
at https://www.bis.org/publ/bcbs128.pdf.
\11\ 78 FR 62018 (October 11, 2013).
---------------------------------------------------------------------------
With respect to CCFs, there are minor differences between Basel II
standardized and the final capital rule. In general, these differences
are only material for a few large institutions and in each case the
calculation is relatively simple and straightforward. Moreover, the
global systemic score under the GSIB framework is calculated using the
standardized approach of the Basel II agreement. For these reasons, the
FR Y-15 will continue to use the Basel II CCF definitions.
For the reasons discussed further in the Specific Data Items
section below, the Federal Reserve will remove the three items on the
FR Y-15 with explicit links to the Basel III implementation monitoring
exercise.
F. Attestation Requirement and Estimated Data
The FR Y-15 attestation page states ``I, the undersigned CFO (or
equivalent) of the named banking organization, attest that the Banking
Organization Systemic Risk Report (including the supporting schedules)
for this report date has been prepared in conformance with the
instructions issued by the Federal Reserve System and is true and
correct to the best of my knowledge and belief.'' One commenter
recommended allowing first-time reporters in 2013 to use reasonable
estimates. They recommended that the allowance be made explicit in the
instructions and on the attestation page. Another commenter asserted
that the Chief Financial Officer (or equivalent) should not have to
attest to data that will tie to a future rulemaking until the rule is
actually finalized. The commenter further argued that respondents need
ample notice and experience with the data before attesting and that the
data should be collected on a best efforts basis until firms have
gained more experience with the report.
Reasonable estimates are already allowed when the institution is
filing the report for the first time. This fact is explicitly captured
in the instructions (see General Instructions, Section F). The
attestation page on the reporting form states that the report has been
``prepared in conformance with the instructions issued by the Federal
Reserve System.'' As the reasonable estimates clause for first-time
reporters is clearly specified in the instructions, it is not necessary
to repeat the clause in the attestation itself. Thus, the Federal
Reserve will retain the current attestation language.
The Federal Reserve does not believe that the ability to attest
data must be linked to the publication of a related final regulatory
requirement. Detailed instructions are provided to respondents and
Federal Reserve Bank staff are available to answer questions pertaining
to the collection. The Federal Reserve believes that these resources,
which mirror those that are available for other collections including
the FR Y-9C, are sufficient to allow for the attestation of the FR Y-
15. The Federal Reserve agrees that respondents need advanced notice of
a reporting requirement in order to build adequate collection and
validation systems. The Federal Reserve, recognizing that smaller BHCs
would require additional time to collect and audit the FR Y-15 data,
limited the initial reporting panel to the eight U.S. GSIBs.\12\ This
provided an additional
[[Page 77132]]
year for the other respondents to prepare for the new reporting
requirement. Given the advanced notice and the resources available, the
Federal Reserve will retain the current attestation requirement.
---------------------------------------------------------------------------
\12\ See 77 FR 76484 (December 28, 2012).
---------------------------------------------------------------------------
G. Specific Data Items
One commenter argued that disclosure of the items associated with
the LCR could expose respondents to risks under U.S. securities laws
because they are not based on a final regulatory standard. The
commenter also argued that the market will inappropriately use the LCR-
related data to assess the liquidity positions of respondents. Another
commenter noted that liquidity rules would not be in effect until 2015
and suggested that the items related to liquidity not be collected
until the final rules take effect.
The BCBS recently adopted a revised systemic risk calculation that
no longer uses the LCR items collected in the previous version of the
report. Taking into consideration this revision along with the comments
received, the Federal Reserve will remove the following six items from
Schedule D: Level 1 assets, subject to operational requirements;
Securities in item 7 that are trading or AFS securities; Level 2
assets, with haircuts and subject to operational requirements;
Securities in item 8 that are trading or AFS securities; Adjustment to
high quality liquid assets (HQLA) due to caps on Level 2B and total
Level 2 assets; and Amount of item 9 attributable to trading and AFS
securities. The two LCR-related items that remain reflect the liquidity
of the bank's trading and AFS securities. These items are not subject
to the same confidentiality concerns since they can be reasonably
estimated based on public FR Y-9C data.\13\ The Federal Reserve
believes this more limited disclosure mitigates the risk of market
participants trying to use systemic risk measures on the FR Y-15 to
assess a firm's liquidity position. To avoid any potential
misinterpretation, the Federal Reserve will remove the reference to
HQLA in one of the remaining items (Total trading and AFS securities
less HQLA).
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\13\ FR Y-9C schedules HC-B and HC-D provide category breakdowns
of AFS and trading securities.
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One commenter asked that a de minimis exemption be considered for
line items unique to the FR Y-15. Due to the rounding rules specified
in the instructions (see General Instructions, Section C), amounts less
than $500,000 are not reported when respondents choose to report their
figures in millions. Therefore, a de minimis exemption already exists
within the report. This exemption will be left unchanged.
Commenters asked for a number of technical clarifications regarding
specific data items on the FR Y-15 form. The Federal Reserve has
addressed these questions in the finalized version of the FR Y-15
instructions.
Board of Governors of the Federal Reserve System, December 17,
2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013-30309 Filed 12-19-13; 8:45 am]
BILLING CODE 6210-01-P