Annual Stress Test, 37235-37239 [2014-14389]
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Federal Register / Vol. 79, No. 126 / Tuesday, July 1, 2014 / Proposed Rules
December 1 (for the stress test beginning
October 1, 2014) or March 1 (for the
stress test beginning January 1, 2016,
and all stress tests thereafter) of the
calendar year.
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■ 4. Section 46.6 is amended by revising
paragraph (a)(2) to read as follows:
§ 46.6 Stress test methodologies and
practices.
(a) * * *
(2) The potential impact on the
covered institution’s regulatory capital
levels and ratios applicable to the
covered institution under 12 CFR part 3
or part 167, as applicable, and any other
capital ratios specified by the OCC,
incorporating the effects of any capital
actions over the planning horizon and
maintenance by the covered institution
of an allowance for loan losses
appropriate for credit exposures
throughout the planning horizon. Until
December 31, 2015, or such other date
specified by the OCC, a covered
institution is not required to calculate
its risk-based capital requirements using
the internal ratings-based and advanced
measurement approaches as set forth in
12 CFR 3, subpart E.
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■ 5. Section 46.7 is amended by revising
paragraphs (a) and (b) to read as follows:
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§ 46.7 Reports to the Office of the
Comptroller of the Currency and the Federal
Reserve Board.
(a) $10 to $50 billion covered
institution. A $10 to $50 billion covered
institution must report to the OCC and
to the Board of Governors of the Federal
Reserve System, on or before March 31
(for the stress test beginning October 1,
2014) and on or before July 31 (for the
stress test beginning January 1, 2016,
and all stress tests thereafter), the results
of the stress test in the manner and form
specified by the OCC.
(b) Over $50 billion covered
institution. An over $50 billion covered
institution must report to the OCC and
to the Board of Governors of the Federal
Reserve System, on or before January 5
(for the stress test beginning October 1,
2014) and on or before April 7 (for the
stress test beginning January 1, 2016,
and all stress tests thereafter), the results
of the stress test in the manner and form
specified by the OCC.
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■ 6. In § 46.8, the heading for paragraph
(a) is republished for reader reference,
and paragraphs (a)(1), and (2) are
revised to read as follows:
§ 46.8
Publication of disclosures
(a) Publication date—(1) Over $50
billion covered institution. (i) Prior to
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January 1, 2016, an over $50 billion
covered institution must publish a
summary of the results of its annual
stress test in the period starting March
15 and ending March 31 (for the stress
test cycle beginning October 1, 2014).
(ii) Effective January 1, 2016, an over
$50 billion covered institution must
publish a summary of the results of its
annual stress test in the period starting
June 15 and ending July 15 (for the
stress test cycle beginning January 1,
2016, and for all stress tests thereafter)
provided:
(A) Unless the OCC determines
otherwise, if the over $50 billion
covered institution is a consolidated
subsidiary of a bank holding company
or savings and loan holding company
subject to supervisory stress tests
conducted by the Board of Governors of
the Federal Reserve System pursuant to
12 CFR part 252, then within the June
15 to July 15 period such covered
institution may not publish the required
summary of its annual stress test earlier
than the date that the Board of
Governors of the Federal Reserve
System publishes the supervisory stress
test results of the covered bank’s parent
holding company.
(B) If the Board of Governors of the
Federal Reserve System publishes the
supervisory stress test results of the
covered institution’s parent holding
company prior to June 15, then such
covered institution may publish its
stress test results prior to June 15, but
no later than July 15, through actual
publication by the covered institution or
through publication by the parent
holding company pursuant to paragraph
(b) of this section.
(2) $10 to $50 billion covered
institution. (i) Prior to January 1, 2016,
a $10 to $50 billion covered institution
must publish a summary of the results
of its annual stress test in the period
starting June 15 and ending June 30 (for
the stress test cycle beginning October 1,
2014).
(ii) Effective January 1, 2016, a $10 to
$50 billion covered institution must
publish a summary of the results of its
annual stress test in the period starting
October 15 and ending October 31 (for
the stress test cycle beginning January 1,
2016, and for all stress tests thereafter).
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Dated: June 11, 2014.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 2014–14416 Filed 6–30–14; 8:45 am]
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37235
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 325
RIN 3064–AE18
Annual Stress Test
Federal Deposit Insurance
Corporation.
ACTION: Proposed rule with request for
public comment.
AGENCY:
The Federal Deposit
Insurance Corporation (the
‘‘Corporation’’ or ‘‘FDIC’’) requests
comment on this proposed rule that
revises FDIC Rules and Regulations
regarding the annual stress testing
requirements for state non-member
banks and state savings associations
with total consolidated assets of more
than $10 billion (‘‘covered banks’’). Our
regulations, which implement section
165(i)(2) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(the ‘‘Dodd-Frank Act’’), requires
covered banks to conduct annual stress
tests and report the results of such stress
test to the Corporation and the Board of
Governors of the Federal Reserve
System (‘‘Board’’) and publicly disclose
a summary of the results of the required
stress tests. The FDIC proposes to
modify the ‘‘as-of’’ dates for financial
data (that covered banks will use to
perform their stress tests) as well as the
reporting dates and public disclosure
dates of the annual stress tests for both
$10 billion to $50 billion covered banks
and $50 billion covered banks. The
revisions to our regulations would
become effective January 1, 2016.
DATES: Comments should be received on
or before September 2, 2014.
ADDRESSES: You may submit comments
by any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Agency Web site: https://
www.FDIC.gov/regulations/laws/
federal/.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street NW.,
Washington, DC 20429.
• Hand Delivered/Courier: The guard
station at the rear of the 550 17th Street
Building (located on F Street), on
business days between 7:00 a.m. and
5:00 p.m.
• E-Mail: comments@FDIC.gov.
Instructions: Comments submitted
must include ‘‘FDIC’’ and ‘‘RIN [ ].’’
Comments received will be posted
without change to https://www.FDIC.gov/
SUMMARY:
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Federal Register / Vol. 79, No. 126 / Tuesday, July 1, 2014 / Proposed Rules
regulations/laws/federal/, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT:
Ryan Sheller, (202) 412–4861, Section
Chief, Large Bank Supervision, Division
of Risk Management and Supervision;
Mark G. Flanigan, Counsel, (202) 898–
7426, Jason Fincke, Counsel, (202) 898–
3659, or Grace Pyun, Senior Attorney,
(202) 898–3609, Legal Division, Federal
Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC, 20429.
SUPPLEMENTARY INFORMATION:
I. Background
A. Part 325 Subpart C —Annual Stress
Test
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Section 165(i) of the Dodd-Frank Act
requires two types of stress tests.
Section 165(i)(1) requires the Board to
conduct annual stress tests of holding
companies with $50 billion or more in
total consolidated assets (‘‘supervisory
stress tests’’). Section 165(i)(2) requires
the federal banking agencies to issue
regulations requiring financial
companies with more than $10 billion
in total consolidated assets to conduct
annual stress testes themselves (‘‘bankrun stress tests’’). Part 325 Subpart C of
the FDIC Rules and Regulations
implements Section 165(i)(2) and
requires FDIC-insured state non-member
banks and FDIC-insured state-chartered
savings associations with total
consolidated assets of more than $10
billion (‘‘covered banks’’) to conduct
annual stress tests. Section 165(i)(2)(C)
of the Dodd-Frank Act also requires the
Corporation, in coordination with the
Board and the Federal Insurance Office,
to issue consistent and comparable
regulations to implement the
requirements of this section. In October
2012, the FDIC, the Office of the
Comptroller of the Currency, and the
Board issued final rules implementing
the company-run stress tests required by
the Dodd-Frank Act.1
Part 325 Subpart C identifies two
categories for ‘‘covered banks’’: A state
nonmember bank or state savings
association that has total consolidated
assets from (1) $10 billion to $50 billion
or (2) over $50 billion.2 For both types
of covered banks, the bank-run stress
test must assess the potential impact of
1 77 FR 62417 (Oct. 15, 2012) (FDIC); 77 FR 61238
(October 9, 2012) (OCC); 77 FR 62396 (October 12,
2012) (FRB).
2 12 CFR 325.202. A $10 billion to $50 billion
covered bank is a state nonmember bank or state
savings association with average total consolidated
assets greater than $10 billion but less than $50
billion. A $50 billion covered bank is a state
nonmember bank or state savings association with
average total consolidated assets that are not less
than $50 billion.
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different scenarios 3 on the capital of the
covered bank and certain related items
over a forward-looking, nine-quarter
planning horizon, taking into account
all relevant exposures and activities.4
Part 325 Subpart C also provides
several timeframes for the testing,
reporting, and publication of the bankrun stress tests, which vary depending
on the category into which the covered
bank falls. Under the current rule, the
stress test cycle begins October 1 of a
calendar year and ends on September 30
of the following calendar year. Covered
banks use financial data as of September
30 (the ‘‘as of date’’) of the preceding
calendar year to make projections that
estimate their financial position under
the different stress scenarios and to
report and publish the results of their
annual stress test in the following
calendar year. Covered banks with $10
billion to $50 billion in total assets must
report the results of their stress tests by
March 31 and publish a summary of
their results between June 15 and June
30.5 Over $50 billion covered banks are
required to report the results of their
annual stress test by January 5 of each
calendar year and publish a summary of
their results between March 15 and
March 31.6 These testing, reporting, and
publication milestones are consistent
across the Federal banking agencies’
annual stress testing rules.
A covered bank that is a consolidated
subsidiary of a bank holding company
or savings and loan holding company is
generally permitted to publish
abbreviated disclosures of its annual
stress test results with the parent
holding company’s summary and on the
same timeline as the parent holding
company.7 The FDIC requires that
specific information be included in the
disclosure to reflect the changes in the
covered bank’s capital ratios and the
reasons for those changes.
B. Overview of Proposed Rule
The FDIC is aware that the current
testing and reporting dates for $10
3 On an annual basis, prior to the start of the
stress testing period and no later than November 15,
the FDIC provides to covered banks a minimum of
three economic scenarios (baseline, adverse, and
severely adverse) and additional scenarios as the
FDIC determines appropriate for the covered banks
to use in performing their stress tests.
4 12 CFR 325.203; in addition, certain covered
banks with significant amounts of trading activities
(as determined by the FDIC) may be required to
include trading and counterparty components in
their adverse and severely adverse scenarios. For
these covered banks, the FDIC selects an as-of date
between October 1 and December 1 of that calendar
year for the data used in this component. This date
is communicated to the covered banks no later than
5 12 CFR 325.204(a); 12 CFR 325.206(a).
6 12 CFR 325.204(a); 12 CFR 325.206(a).
7 12 CFR 325.207(b).
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billion to $50 billion and $50 billion
covered banks occur at the beginning
and end of the calendar year when there
are competing regulatory and reporting
deadlines that must be met. The FDIC is
also aware that the testing reporting and
publication cycles occur when covered
banks are typically most resourceconstrained. Furthermore, conducting
stress testing during the first quarter of
a calendar year may also make it
difficult for covered banks to make
timely modifications to strategic and
operational plans for the following year
that address any issues identified in the
bank-run stress test results.
For these reasons, the FDIC is
proposing to modify the dates of the
stress test cycle and the corresponding
reporting and publication deadlines as
of January 1, 2016. The stress testing
cycle that, under the current rule, begins
on October 1, 2015, would instead begin
on January 1, 2016. Under the proposed
rule, covered banks would conduct
bank-run stress tests using financial data
as of December 31 of the preceding
calendar year, which represents a 90day shift from September 30 in the
current rule. The FDIC would provide
the economic scenarios to be used by
covered banks in their bank-run stress
tests no later than February 15 rather
than November 15, as is provided under
the existing rule. For those certain
covered banks with significant amounts
of trading activities that are required to
include trading and counterparty
components in their adverse and
severely adverse scenarios, the FDIC
will select an as-of date between January
1 and March 1 of that calendar year for
the data used in this component. The
FDIC will communicate this date to the
covered banks no later than March 1.
Under the proposed rule all $10
billion to $50 billion covered banks
would be required to conduct and
submit the results of their bank-run
stress tests to the FDIC by July 31 and
publish those results during a period
beginning on October 15 and ending
October 31. Over $50 billion covered
banks would be required to conduct and
submit the results of their bank-run
stress tests to the FDIC by April 7 and
publish those results during a period
beginning on June 15 and ending on
July 15.
Furthermore, a covered bank that is a
consolidated subsidiary of a bank
holding company or savings and loan
holding company that is required to
conduct an annual company-run stress
test under applicable regulations of the
Board may continue to elect to conduct
its stress test and report to the FDIC on
the same timeline as its parent bank
holding company or savings and loan
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Federal Register / Vol. 79, No. 126 / Tuesday, July 1, 2014 / Proposed Rules
holding company as it had under the
existing rule. Under the proposed rule,
however, an over $50 billion covered
bank that is a consolidated subsidiary of
a banking holding company or savings
and loan holding company that is
subject to supervisory stress tests
conducted by the Board under 12 CFR
part 252 (i.e., the Comprehensive
Capital Analysis and Review or
‘‘CCAR’’) may publish the required
summary of its bank-run stress test no
earlier than the date that the Board
publishes the supervisory stress test
results for the parent holding company,
but no later than July 15. In addition, if
the Board publishes the supervisory
stress test results of the covered bank’s
parent holding company prior to June
15, then the covered bank may satisfy its
publication requirement either through
actual publication by the covered bank
or through publication by the parent
holding company under § 325.207.
The proposed rule would also amend
the applicability provisions in § 325.203
of the Annual Stress Test rule to reflect
the changed timeline. Currently, a state
nonmember bank or state savings
association that becomes a covered bank
must conduct its first annual stress test
beginning in the next calendar year after
the date the state nonmember bank or
state savings association becomes a
covered bank. Under the new stress
testing timeline, if this applicability
provision were left unchanged, if a state
nonmember bank or state savings
association became a covered bank as of
September 30 of a given year, the
institution would be required to
conduct its first stress test in the stress
testing cycle beginning the following
January 1, three months after becoming
a covered bank. The current rule
provides a minimum of nine months
between the date on which a state
nonmember bank or state savings
association becomes a covered bank and
the start date of the stress testing cycle
in which the covered bank must
conduct it first stress test. To preserve
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the nine-month minimum the proposed
rule would establish a March 31 cutoff
date. A state nonmember bank or state
savings association that becomes a
covered bank on or before March 31 of
a given year would be required to
conduct its first stress test in the next
calendar year. For example, a state
nonmember bank or state savings
association that becomes a covered bank
on March 31, 2015 would be required to
conduct its first stress test in the stress
testing cycle beginning January 1, 2016.
A state nonmember bank or state
savings association that becomes a
covered bank after March 31 of a given
year would be required to conduct its
first stress test in the second calendar
year after the date the state nonmember
bank or state savings association
becomes a covered bank. For example,
a state nonmember bank or state savings
association that becomes a covered bank
on June 30, 2015 would be required to
conduct its first stress test in the stress
testing cycle beginning January 1, 2017.
TABLE 1—MODIFIED ANNUAL STRESS TEST TIMELINE FOR $10 BILLION–$50 BILLION COVERED BANKS
Action required
Current rule
Proposed rule
‘‘As of Date’’ for Financial Data ..........................
Distribution of Scenarios for Annual Stress
Tests by FDIC.
Reporting of Annual Stress Test Results ...........
Public Disclosure of Annual Stress Test Results
September 30 ..................................................
By November 15 ..............................................
December 31.
By February 15.
By March 31 .....................................................
Between June 15 and June 30 ........................
By July 31.
Between October 15 and October 31.
TABLE 2—MODIFIED ANNUAL STRESS TEST TIMELINE FOR OVER $50 BILLION COVERED BANKS
Action required
Current rule
‘‘As of Date’’ for Financial Data ..........................
Distribution of Scenarios for Annual Stress
Tests by FDIC.
Reporting of Annual Stress Test Results ...........
Public Disclosure of Annual Stress Test Results
September 30 ..................................................
By November 15 ..............................................
December 31.
By February 15.
By January 5 ....................................................
Between March 15 and March 30 ...................
By April 7.
Between June 15 and July 15, except no earlier than Board publication of the supervisory stress test results of the covered
bank’s holding company.
covered banks under the annual stress
test rule? In particular, should the FDIC
adopt transition provisions with fixed
cutoff dates for state nonmember banks
or state savings associations that become
covered under Part 325 Subpart C,
where such provisions provide specific
date requirements indicating when
covered banks would be subject to the
next applicable stress test? If so, what
should the cutoff dates be?
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(‘‘OMB’’) control number. The
information collections affected by this
NPR are the FDIC’s Annual Stress Test
Final Rule and Reporting Templates, [ ]
and [ ].8
The Corporation proposes to revise 12
CFR 325.202, 325.203, 325.204, 325.206,
and 325.207 by modifying timelines for
the testing, reporting, and disclosure of
the annual stress tests for covered
banks. The revisions would shift by 90
days the as-of date of the financial data
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II. Request for Comments
The Corporation requests comments
on all aspects of the proposed rule to
revise Part 325 Subpart C, in particular:
• What, if any, specific challenges
exist with respect to the proposed steps
and time frames?
• Please comment on the use of the
proposed: ‘‘as of date’’ of December 31,
the April 7 and July 31 reporting dates,
and the June 15 to July 15 and October
15 to October 31 publication dates for
over $50 billion covered banks and $10
billion to $50 billion covered banks,
respectively.
• Should the FDIC also modify the
timing of when state nonmember banks
and state savings associations become
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Proposed rule
III. Administrative Law Matters
A. Paperwork Reduction Act Analysis
In accordance with the requirements
of the Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3521) (‘‘PRA’’), the
Corporation may not conduct or
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Dates of when it was proposed/renewed.
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used to conduct bank run-stress tests for
covered banks from September 30 to
December 31. The proposed rule would
also shift the reporting and disclosure
deadlines for both $10 billion to $50
billion covered banks and over $50
billion covered banks and provide for a
new transition period for those covered
banks that become covered under the
rule. Additionally, under the proposed
rule an over $50 billion covered bank
that is a consolidated subsidiary of a
bank holding company or savings and
loan holding company subject to
supervisory stress tests conducted by
the Board of Governors of the Federal
Reserve System may publish the
required summary of its annual stress
no earlier than the date that the Board
publishes the supervisory stress test
results of the covered bank’s parent
holding company but no later than July
15. The revision of timelines in Part 325
subpart C will not involve any new
collections of information pursuant to
the PRA.
B. Regulatory Flexibility Act Analysis
The Regulatory Flexibility Act, 5
U.S.C. 601, et seq. (‘‘RFA’’), requires
that each federal agency either certify
that a proposed rule would not, if
adopted in final form, have a significant
economic impact on a substantial
number of small entities or prepare an
initial regulatory flexibility analysis of
the rule and publish the analysis for
comment.9 The proposed rule would
apply only to state nonmember banks
and state savings associations with more
than $10 billion in total consolidated
assets. Under regulations issued by the
Small Business Administration
(‘‘SBA’’), a bank or other depository
institution is considered ‘‘small’’ if it
has $175 million or less in assets.10 As
of December 31, 2013, there are
approximately 2,363 small state
nonmember banks and state savings
associations. Since the proposed rule
would apply only to state nonmember
banks and state savings associations
with more than $10 billion in total
consolidated assets, the Corporation
does not expect that the proposed rule
will directly affect a substantial number
of small entities. It is hereby certified
that this rule will not have a significant
economic impact on a substantial
number of small entities and therefore,
a regulatory flexibility analysis under
the RFA is not required.
C. Plain Language
Section 722 of the Gramm-LeachBliley Act (Pub. L. 106–102, 113 Stat.
9 See
10 13
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List of Subjects in 12 CFR Part 325,
Subpart C
12 CFR Chapter III
Administrative practice and
procedure, Banking, Disclosures,
Federal Deposit Insurance Corporation,
Reporting and recordkeeping
requirements, State nonmember banks,
State savings associations, Stress tests.
Federal Deposit Insurance Corporation
12 CFR Chapter III
Authority and Issuance
For reasons stated in the preamble,
the Board of Directors of the Federal
Deposit Insurance Corporation proposes
to amend subpart C to part 325 of title
12 of the Code of Federal Regulations as
follows:
Part 325—CAPITAL MAINTENANCE
1. The authority citation for part 325
continues to read as follows:
■
Authority: 12 U.S.C. 1815(a), 1815(b),
1816, 1818(a), 1818(b), 1818(c), 1818(t),
1819(Tenth), 1828(c), 1828(d), 1828(i),
1828(n), 1828(o), 1831o, 1831p–1, 1835,
3907, 3909, 4808; Pub. L. 102–233; 105 Stat.
1761, 1789, 1790 (12 U.S.C. 1831n note); Pub.
L. 102–242, 105 Stat. 2236, as amended by
Pub. L. 103–325, 108 Stat. 2160, 2233 (12
U.S.C. 1828 note); Pub. L. 102–242, 105 Stat.
2236, 2386, as amended by Pub. L. 102–550,
106 Stat. 3672, 4089 (12 U.S.C. 1828 note);
12 U.S.C. 5365(i); 12 U.S.C. 5412(b)(2)(B).
2. In § 325.202 add paragraph (m) to
read as follows:
■
5 U.S.C. 603, 604, and 605.
CFR 121.201.
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1338, 1471, 12 U.S.C. 4809) requires
Federal banking agencies to use plain
language in all proposed and final rules
published after January 1, 2000. The
Corporation has sought to present the
proposed rule in a simple and
straightforward manner and invites
comment on how to make the proposed
rule easier to understand. For example:
• Is the material organized to suit
your needs? If not, how could the rule
be more clearly presented?
• Are the requirements in the rule
clearly stated? If not, how could the rule
be more clearly stated?
• Do the regulations contain technical
language or jargon that is not clear? If
so, which language requires
clarification?
• Would a different format (grouping
and order of sections, use of headings,
paragraphing) make the regulation
easier to understand? If so, what
changes would achieve that?
• Is this section format adequate? If
not, which of the sections should be
changed and how?
• What other changes can the
Corporation incorporate to make the
regulation easier to understand?
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§ 325.202
Definitions.
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(m) Stress test cycle means:
(i) Until October 1, 2015, the period
beginning October 1 of a calendar year
and ending on September 30 of the
following calendar year, and
(ii) Beginning October 1, 2015, the
period beginning January 1 of a calendar
year and ending on December 31 of that
year.
■ 3. In § 325.203 revise intro text
paragraph (c) to read as follows:
§ 325.203
Applicability.
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(c) Covered banks that become subject
to stress testing requirements after
October 9, 2012. A state nonmember
bank or state savings association that
becomes a covered bank, as defined in
§ 325.202 of this part, after March 31,
2014 and on or before March 31, 2015,
shall conduct it first annual stress test
in the stress test cycle beginning January
1, 2016. A state nonmember bank or
state savings association that becomes a
covered bank on or before March 31 of
a given year (after 2014) shall conduct
its first annual stress test under this part
in the next calendar year after the date
the state nonmember bank or state
savings association becomes a covered
bank. A state nonmember bank or state
savings association that becomes a
covered bank after March 31 of a given
year (after 2014) shall conduct its first
annual stress test under this part in the
second calendar year after the date the
state nonmember bank or state savings
association becomes a covered bank.
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■ 4. Revise § 325.204 to read as follows:
§ 325.204
Annual stress tests required.
(a) General requirements.
(1) $10 billion to $50 billion covered
bank. Prior to January 1, 2016, a $10
billion to $50 billion covered bank must
conduct a stress test on or before March
31 of each calendar year based on
financial data as of September 30 of the
preceding calendar year. Effective
January 1, 2016, a $10 billion to $50
billion covered bank must conduct a
stress test on or before July 31 of each
calendar year based on financial data as
of December 31 of the preceding
calendar year.
(2) Over $50 billion covered bank.
Prior to January 1, 2016, an over $50
billion covered bank must conduct a
stress test on or before January 5 of each
calendar year based on financial data as
of September 30 of the preceding
calendar year. Effective January 1, 2016,
an over $50 billion covered bank must
conduct a stress test on or before April
7 of each calendar year based on
E:\FR\FM\01JYP1.SGM
01JYP1
Federal Register / Vol. 79, No. 126 / Tuesday, July 1, 2014 / Proposed Rules
financial data as of December 31 of the
preceding calendar year.
(b) Scenarios provided by the
Corporation.
In conducting the stress test under
this subpart, each covered bank must
use the scenarios provided the
Corporation. The scenarios provided by
the Corporation will reflect a minimum
of three sets of economic and financial
conditions, including: Baseline, adverse,
and severely adverse scenarios. The
Corporation will provide a description
of the scenarios required under this
section to each covered bank no later
than November 15 (for the stress tests
beginning October 1, 2014) or February
15 (for the stress test beginning January
1, 2016, and all stress tests thereafter) of
that calendar year.
(c) Significant trading activities. The
Corporation may require a covered bank
with significant trading activities, as
determined by the Corporation, to
include trading and counterparty
components in its adverse and severely
adverse scenarios. The trading and
counterparty position data used in these
components will be as of a date between
October 1 and December 1 (for the stress
test beginning October 1, 2014) or
between January 1 and March 1 (for the
stress test beginning January 1, 2016,
and all stress tests thereafter) of that
calendar year selected by the
Corporation and communicated to the
covered bank no later than December 1
(for the stress test beginning October 1,
2014) or March 1 (for the stress test
beginning January 1, 2016, and all stress
tests thereafter) of the calendar year.
■ 5. Revise § 325.206 paragraph (a) to
read as follows:
tkelley on DSK3SPTVN1PROD with PROPOSALS
§ 325.206 Required reports of stress test
results to the FDIC and the Board of
Governors of the Federal Reserve System
(a) Report required for annual stress
test results.
(1) $10 billion to $50 billion covered
bank. Prior to January 1, 2016, a $10
billion to $50 billion covered bank must
report to the FDIC and to the Board on
or before March 31 the results of the
stress test in the manner and form
specified by the FDIC. Effective January
1, 2016, a $10 billion to $50 billion
covered bank must report to the FDIC
and to the Board on or before July 31 the
results of the stress test in the manner
and form specified by the FDIC.
(2) Over $50 billion covered bank.
Prior to January 1, 2016, an over $50
billion covered bank must report to the
FDIC and to the Board, on or before
January 5, the results of the stress test
in the manner and form specified by the
FDIC. Effective January 1, 2016, an over
$50 billion covered bank must report to
VerDate Mar<15>2010
16:47 Jun 30, 2014
Jkt 232001
37239
the FDIC and to the Board, on or before
April 7, the results of the stress test in
the manner and form specified by the
FDIC.
*
*
*
*
*
■ 6. Revise § 325.207 paragraph (a) to
read as follows:
By order of the Board of Directors.
Dated at Washington, DC, this 13th day of
June 2014.
Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
§ 325.207
results.
BILLING CODE 6714–01–P
Publication of stress test
(a) Publication date.
(1) $10 billion to $50 billion covered
bank. (i) Prior to January 1, 2016, a $10
billion to $50 billion covered bank must
publish a summary of the results of its
annual stress test in the period starting
June 15 and ending June 30 (for the
stress test cycle beginning October 1,
2014).
(ii) Effective January 1, 2016, a $10
billion to $50 billion covered bank must
publish a summary of the results of its
annual stress test in the period starting
October 15 and ending October 31 (for
the stress test cycle beginning January 1,
2016 and for all annual stress tests
thereafter).
(2) Over $50 billion covered bank. (i)
Prior to January 1, 2016, an over $50
billion covered bank must publish a
summary of the results of its annual
stress tests in the period starting March
15 and ending March 31 (for the stress
test cycle beginning October 1, 2014).
(ii) Effective January 1, 2016, an over
$50 billion covered bank must publish
a summary of the results of its annual
stress tests in the period starting June 15
and ending July 15 (for the stress test
cycle beginning January 1, 2016, and for
all annual stress tests thereafter)
provided:
(A) Unless the FDIC determines
otherwise, if the over $50 billion
covered bank is a consolidated
subsidiary of a bank holding company
or savings and loan holding company
subject to supervisory stress tests
conducted by the Board of Governors of
the Federal Reserve System under 12
CFR part 252, then, within the June 15
to July 15 period, such covered bank
may not publish the required summary
of its annual stress test earlier than the
date that the Board of Governors of the
Federal Reserve System publishes the
supervisory stress test results of the
covered bank’s parent holding company.
(B) If the Board of Governors of the
Federal Reserve System publishes the
supervisory stress test results of the
covered bank’s parent holding company
prior to June 15, then such covered bank
may publish its stress test results prior
to June 15, but no later than July 15,
through actual publication by the
covered bank or through publication by
the parent holding company under
paragraph (b) of this section.
PO 00000
Frm 00009
Fmt 4702
Sfmt 4702
[FR Doc. 2014–14389 Filed 6–30–14; 8:45 am]
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2011–0475; Directorate
Identifier 2010–NM–199–AD]
RIN 2120–AA64
Airworthiness Directives; The Boeing
Company Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Supplemental notice of
proposed rulemaking (NPRM);
reopening of comment period.
AGENCY:
We are revising an earlier
proposed airworthiness directive (AD)
for certain The Boeing Company Model
757–200, –200PF, –200CB, and –300
series airplanes. The NPRM proposed to
require, for certain airplanes, installing
new relays adjacent to two of the spoiler
control modules. For certain other
airplanes, the NPRM proposed to
require torquing the bracket assembly
installation nuts and ground stud nuts,
and doing bond resistance tests between
the bracket assemblies and the terminal
lugs on the ground studs. The NPRM
was prompted by numerous reports of
unintended lateral oscillations during
final approach, just before landing. This
action revises the NPRM by adding
actions that are necessary to address the
identified unsafe condition. We are
proposing this supplemental NPRM
(SNPRM) to reduce the chance of
unintended lateral oscillations near
touchdown, which could result in loss
of lateral control of the airplane, and
consequent airplane damage or injury to
flight crew and passengers. Since these
actions impose an additional burden
over that proposed in the NPRM, we are
reopening the comment period to allow
the public the chance to comment on
these proposed changes.
DATES: We must receive comments on
this SNPRM by August 15, 2014.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
SUMMARY:
E:\FR\FM\01JYP1.SGM
01JYP1
]]>Agencies
[Federal Register Volume 79, Number 126 (Tuesday, July 1, 2014)]
[Proposed Rules]
[Pages 37235-37239]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14389]
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 325
RIN 3064-AE18
Annual Stress Test
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Proposed rule with request for public comment.
-----------------------------------------------------------------------
SUMMARY: The Federal Deposit Insurance Corporation (the ``Corporation''
or ``FDIC'') requests comment on this proposed rule that revises FDIC
Rules and Regulations regarding the annual stress testing requirements
for state non-member banks and state savings associations with total
consolidated assets of more than $10 billion (``covered banks''). Our
regulations, which implement section 165(i)(2) of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (the ``Dodd-Frank Act''),
requires covered banks to conduct annual stress tests and report the
results of such stress test to the Corporation and the Board of
Governors of the Federal Reserve System (``Board'') and publicly
disclose a summary of the results of the required stress tests. The
FDIC proposes to modify the ``as-of'' dates for financial data (that
covered banks will use to perform their stress tests) as well as the
reporting dates and public disclosure dates of the annual stress tests
for both $10 billion to $50 billion covered banks and $50 billion
covered banks. The revisions to our regulations would become effective
January 1, 2016.
DATES: Comments should be received on or before September 2, 2014.
ADDRESSES: You may submit comments by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Agency Web site: https://www.FDIC.gov/regulations/laws/federal/.
Mail: Robert E. Feldman, Executive Secretary, Attention:
Comments/Legal ESS, Federal Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429.
Hand Delivered/Courier: The guard station at the rear of
the 550 17th Street Building (located on F Street), on business days
between 7:00 a.m. and 5:00 p.m.
E-Mail: comments@FDIC.gov.
Instructions: Comments submitted must include ``FDIC'' and ``RIN [
].'' Comments received will be posted without change to https://
www.FDIC.gov/
[[Page 37236]]
regulations/laws/federal/, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Ryan Sheller, (202) 412-4861, Section
Chief, Large Bank Supervision, Division of Risk Management and
Supervision; Mark G. Flanigan, Counsel, (202) 898-7426, Jason Fincke,
Counsel, (202) 898-3659, or Grace Pyun, Senior Attorney, (202) 898-
3609, Legal Division, Federal Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC, 20429.
SUPPLEMENTARY INFORMATION:
I. Background
A. Part 325 Subpart C --Annual Stress Test
Section 165(i) of the Dodd-Frank Act requires two types of stress
tests. Section 165(i)(1) requires the Board to conduct annual stress
tests of holding companies with $50 billion or more in total
consolidated assets (``supervisory stress tests''). Section 165(i)(2)
requires the federal banking agencies to issue regulations requiring
financial companies with more than $10 billion in total consolidated
assets to conduct annual stress testes themselves (``bank-run stress
tests''). Part 325 Subpart C of the FDIC Rules and Regulations
implements Section 165(i)(2) and requires FDIC-insured state non-member
banks and FDIC-insured state-chartered savings associations with total
consolidated assets of more than $10 billion (``covered banks'') to
conduct annual stress tests. Section 165(i)(2)(C) of the Dodd-Frank Act
also requires the Corporation, in coordination with the Board and the
Federal Insurance Office, to issue consistent and comparable
regulations to implement the requirements of this section. In October
2012, the FDIC, the Office of the Comptroller of the Currency, and the
Board issued final rules implementing the company-run stress tests
required by the Dodd-Frank Act.\1\
---------------------------------------------------------------------------
\1\ 77 FR 62417 (Oct. 15, 2012) (FDIC); 77 FR 61238 (October 9,
2012) (OCC); 77 FR 62396 (October 12, 2012) (FRB).
---------------------------------------------------------------------------
Part 325 Subpart C identifies two categories for ``covered banks'':
A state nonmember bank or state savings association that has total
consolidated assets from (1) $10 billion to $50 billion or (2) over $50
billion.\2\ For both types of covered banks, the bank-run stress test
must assess the potential impact of different scenarios \3\ on the
capital of the covered bank and certain related items over a forward-
looking, nine-quarter planning horizon, taking into account all
relevant exposures and activities.\4\
---------------------------------------------------------------------------
\2\ 12 CFR 325.202. A $10 billion to $50 billion covered bank is
a state nonmember bank or state savings association with average
total consolidated assets greater than $10 billion but less than $50
billion. A $50 billion covered bank is a state nonmember bank or
state savings association with average total consolidated assets
that are not less than $50 billion.
\3\ On an annual basis, prior to the start of the stress testing
period and no later than November 15, the FDIC provides to covered
banks a minimum of three economic scenarios (baseline, adverse, and
severely adverse) and additional scenarios as the FDIC determines
appropriate for the covered banks to use in performing their stress
tests.
\4\ 12 CFR 325.203; in addition, certain covered banks with
significant amounts of trading activities (as determined by the
FDIC) may be required to include trading and counterparty components
in their adverse and severely adverse scenarios. For these covered
banks, the FDIC selects an as-of date between October 1 and December
1 of that calendar year for the data used in this component. This
date is communicated to the covered banks no later than
---------------------------------------------------------------------------
Part 325 Subpart C also provides several timeframes for the
testing, reporting, and publication of the bank-run stress tests, which
vary depending on the category into which the covered bank falls. Under
the current rule, the stress test cycle begins October 1 of a calendar
year and ends on September 30 of the following calendar year. Covered
banks use financial data as of September 30 (the ``as of date'') of the
preceding calendar year to make projections that estimate their
financial position under the different stress scenarios and to report
and publish the results of their annual stress test in the following
calendar year. Covered banks with $10 billion to $50 billion in total
assets must report the results of their stress tests by March 31 and
publish a summary of their results between June 15 and June 30.\5\ Over
$50 billion covered banks are required to report the results of their
annual stress test by January 5 of each calendar year and publish a
summary of their results between March 15 and March 31.\6\ These
testing, reporting, and publication milestones are consistent across
the Federal banking agencies' annual stress testing rules.
---------------------------------------------------------------------------
\5\ 12 CFR 325.204(a); 12 CFR 325.206(a).
\6\ 12 CFR 325.204(a); 12 CFR 325.206(a).
---------------------------------------------------------------------------
A covered bank that is a consolidated subsidiary of a bank holding
company or savings and loan holding company is generally permitted to
publish abbreviated disclosures of its annual stress test results with
the parent holding company's summary and on the same timeline as the
parent holding company.\7\ The FDIC requires that specific information
be included in the disclosure to reflect the changes in the covered
bank's capital ratios and the reasons for those changes.
---------------------------------------------------------------------------
\7\ 12 CFR 325.207(b).
---------------------------------------------------------------------------
B. Overview of Proposed Rule
The FDIC is aware that the current testing and reporting dates for
$10 billion to $50 billion and $50 billion covered banks occur at the
beginning and end of the calendar year when there are competing
regulatory and reporting deadlines that must be met. The FDIC is also
aware that the testing reporting and publication cycles occur when
covered banks are typically most resource-constrained. Furthermore,
conducting stress testing during the first quarter of a calendar year
may also make it difficult for covered banks to make timely
modifications to strategic and operational plans for the following year
that address any issues identified in the bank-run stress test results.
For these reasons, the FDIC is proposing to modify the dates of the
stress test cycle and the corresponding reporting and publication
deadlines as of January 1, 2016. The stress testing cycle that, under
the current rule, begins on October 1, 2015, would instead begin on
January 1, 2016. Under the proposed rule, covered banks would conduct
bank-run stress tests using financial data as of December 31 of the
preceding calendar year, which represents a 90-day shift from September
30 in the current rule. The FDIC would provide the economic scenarios
to be used by covered banks in their bank-run stress tests no later
than February 15 rather than November 15, as is provided under the
existing rule. For those certain covered banks with significant amounts
of trading activities that are required to include trading and
counterparty components in their adverse and severely adverse
scenarios, the FDIC will select an as-of date between January 1 and
March 1 of that calendar year for the data used in this component. The
FDIC will communicate this date to the covered banks no later than
March 1.
Under the proposed rule all $10 billion to $50 billion covered
banks would be required to conduct and submit the results of their
bank-run stress tests to the FDIC by July 31 and publish those results
during a period beginning on October 15 and ending October 31. Over $50
billion covered banks would be required to conduct and submit the
results of their bank-run stress tests to the FDIC by April 7 and
publish those results during a period beginning on June 15 and ending
on July 15.
Furthermore, a covered bank that is a consolidated subsidiary of a
bank holding company or savings and loan holding company that is
required to conduct an annual company-run stress test under applicable
regulations of the Board may continue to elect to conduct its stress
test and report to the FDIC on the same timeline as its parent bank
holding company or savings and loan
[[Page 37237]]
holding company as it had under the existing rule. Under the proposed
rule, however, an over $50 billion covered bank that is a consolidated
subsidiary of a banking holding company or savings and loan holding
company that is subject to supervisory stress tests conducted by the
Board under 12 CFR part 252 (i.e., the Comprehensive Capital Analysis
and Review or ``CCAR'') may publish the required summary of its bank-
run stress test no earlier than the date that the Board publishes the
supervisory stress test results for the parent holding company, but no
later than July 15. In addition, if the Board publishes the supervisory
stress test results of the covered bank's parent holding company prior
to June 15, then the covered bank may satisfy its publication
requirement either through actual publication by the covered bank or
through publication by the parent holding company under Sec. 325.207.
The proposed rule would also amend the applicability provisions in
Sec. 325.203 of the Annual Stress Test rule to reflect the changed
timeline. Currently, a state nonmember bank or state savings
association that becomes a covered bank must conduct its first annual
stress test beginning in the next calendar year after the date the
state nonmember bank or state savings association becomes a covered
bank. Under the new stress testing timeline, if this applicability
provision were left unchanged, if a state nonmember bank or state
savings association became a covered bank as of September 30 of a given
year, the institution would be required to conduct its first stress
test in the stress testing cycle beginning the following January 1,
three months after becoming a covered bank. The current rule provides a
minimum of nine months between the date on which a state nonmember bank
or state savings association becomes a covered bank and the start date
of the stress testing cycle in which the covered bank must conduct it
first stress test. To preserve the nine-month minimum the proposed rule
would establish a March 31 cutoff date. A state nonmember bank or state
savings association that becomes a covered bank on or before March 31
of a given year would be required to conduct its first stress test in
the next calendar year. For example, a state nonmember bank or state
savings association that becomes a covered bank on March 31, 2015 would
be required to conduct its first stress test in the stress testing
cycle beginning January 1, 2016. A state nonmember bank or state
savings association that becomes a covered bank after March 31 of a
given year would be required to conduct its first stress test in the
second calendar year after the date the state nonmember bank or state
savings association becomes a covered bank. For example, a state
nonmember bank or state savings association that becomes a covered bank
on June 30, 2015 would be required to conduct its first stress test in
the stress testing cycle beginning January 1, 2017.
Table 1--Modified Annual Stress Test Timeline for $10 Billion-$50
Billion Covered Banks
------------------------------------------------------------------------
Action required Current rule Proposed rule
------------------------------------------------------------------------
``As of Date'' for Financial September 30........ December 31.
Data.
Distribution of Scenarios By November 15...... By February 15.
for Annual Stress Tests by
FDIC.
Reporting of Annual Stress By March 31......... By July 31.
Test Results.
Public Disclosure of Annual Between June 15 and Between October 15
Stress Test Results. June 30. and October 31.
------------------------------------------------------------------------
Table 2--Modified Annual Stress Test Timeline for Over $50 Billion
Covered Banks
------------------------------------------------------------------------
Action required Current rule Proposed rule
------------------------------------------------------------------------
``As of Date'' for Financial September 30........ December 31.
Data.
Distribution of Scenarios By November 15...... By February 15.
for Annual Stress Tests by
FDIC.
Reporting of Annual Stress By January 5........ By April 7.
Test Results.
Public Disclosure of Annual Between March 15 and Between June 15 and
Stress Test Results. March 30. July 15, except no
earlier than Board
publication of the
supervisory stress
test results of the
covered bank's
holding company.
------------------------------------------------------------------------
II. Request for Comments
The Corporation requests comments on all aspects of the proposed
rule to revise Part 325 Subpart C, in particular:
What, if any, specific challenges exist with respect to
the proposed steps and time frames?
Please comment on the use of the proposed: ``as of date''
of December 31, the April 7 and July 31 reporting dates, and the June
15 to July 15 and October 15 to October 31 publication dates for over
$50 billion covered banks and $10 billion to $50 billion covered banks,
respectively.
Should the FDIC also modify the timing of when state
nonmember banks and state savings associations become covered banks
under the annual stress test rule? In particular, should the FDIC adopt
transition provisions with fixed cutoff dates for state nonmember banks
or state savings associations that become covered under Part 325
Subpart C, where such provisions provide specific date requirements
indicating when covered banks would be subject to the next applicable
stress test? If so, what should the cutoff dates be?
III. Administrative Law Matters
A. Paperwork Reduction Act Analysis
In accordance with the requirements of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501-3521) (``PRA''), the Corporation may not
conduct or sponsor, and the respondent is not required to respond to,
an information collection unless it displays a currently valid Office
of Management and Budget (``OMB'') control number. The information
collections affected by this NPR are the FDIC's Annual Stress Test
Final Rule and Reporting Templates, [ ] and [ ].\8\
---------------------------------------------------------------------------
\8\ Insert Dates of when it was proposed/renewed.
---------------------------------------------------------------------------
The Corporation proposes to revise 12 CFR 325.202, 325.203,
325.204, 325.206, and 325.207 by modifying timelines for the testing,
reporting, and disclosure of the annual stress tests for covered banks.
The revisions would shift by 90 days the as-of date of the financial
data
[[Page 37238]]
used to conduct bank run-stress tests for covered banks from September
30 to December 31. The proposed rule would also shift the reporting and
disclosure deadlines for both $10 billion to $50 billion covered banks
and over $50 billion covered banks and provide for a new transition
period for those covered banks that become covered under the rule.
Additionally, under the proposed rule an over $50 billion covered bank
that is a consolidated subsidiary of a bank holding company or savings
and loan holding company subject to supervisory stress tests conducted
by the Board of Governors of the Federal Reserve System may publish the
required summary of its annual stress no earlier than the date that the
Board publishes the supervisory stress test results of the covered
bank's parent holding company but no later than July 15. The revision
of timelines in Part 325 subpart C will not involve any new collections
of information pursuant to the PRA.
B. Regulatory Flexibility Act Analysis
The Regulatory Flexibility Act, 5 U.S.C. 601, et seq. (``RFA''),
requires that each federal agency either certify that a proposed rule
would not, if adopted in final form, have a significant economic impact
on a substantial number of small entities or prepare an initial
regulatory flexibility analysis of the rule and publish the analysis
for comment.\9\ The proposed rule would apply only to state nonmember
banks and state savings associations with more than $10 billion in
total consolidated assets. Under regulations issued by the Small
Business Administration (``SBA''), a bank or other depository
institution is considered ``small'' if it has $175 million or less in
assets.\10\ As of December 31, 2013, there are approximately 2,363
small state nonmember banks and state savings associations. Since the
proposed rule would apply only to state nonmember banks and state
savings associations with more than $10 billion in total consolidated
assets, the Corporation does not expect that the proposed rule will
directly affect a substantial number of small entities. It is hereby
certified that this rule will not have a significant economic impact on
a substantial number of small entities and therefore, a regulatory
flexibility analysis under the RFA is not required.
---------------------------------------------------------------------------
\9\ See 5 U.S.C. 603, 604, and 605.
\10\ 13 CFR 121.201.
---------------------------------------------------------------------------
C. Plain Language
Section 722 of the Gramm-Leach-Bliley Act (Pub. L. 106-102, 113
Stat. 1338, 1471, 12 U.S.C. 4809) requires Federal banking agencies to
use plain language in all proposed and final rules published after
January 1, 2000. The Corporation has sought to present the proposed
rule in a simple and straightforward manner and invites comment on how
to make the proposed rule easier to understand. For example:
Is the material organized to suit your needs? If not, how
could the rule be more clearly presented?
Are the requirements in the rule clearly stated? If not,
how could the rule be more clearly stated?
Do the regulations contain technical language or jargon
that is not clear? If so, which language requires clarification?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the regulation easier to
understand? If so, what changes would achieve that?
Is this section format adequate? If not, which of the
sections should be changed and how?
What other changes can the Corporation incorporate to make
the regulation easier to understand?
List of Subjects in 12 CFR Part 325, Subpart C
12 CFR Chapter III
Administrative practice and procedure, Banking, Disclosures,
Federal Deposit Insurance Corporation, Reporting and recordkeeping
requirements, State nonmember banks, State savings associations, Stress
tests.
Federal Deposit Insurance Corporation
12 CFR Chapter III
Authority and Issuance
For reasons stated in the preamble, the Board of Directors of the
Federal Deposit Insurance Corporation proposes to amend subpart C to
part 325 of title 12 of the Code of Federal Regulations as follows:
Part 325--CAPITAL MAINTENANCE
0
1. The authority citation for part 325 continues to read as follows:
Authority: 12 U.S.C. 1815(a), 1815(b), 1816, 1818(a), 1818(b),
1818(c), 1818(t), 1819(Tenth), 1828(c), 1828(d), 1828(i), 1828(n),
1828(o), 1831o, 1831p-1, 1835, 3907, 3909, 4808; Pub. L. 102-233;
105 Stat. 1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. L. 102-242,
105 Stat. 2236, as amended by Pub. L. 103-325, 108 Stat. 2160, 2233
(12 U.S.C. 1828 note); Pub. L. 102-242, 105 Stat. 2236, 2386, as
amended by Pub. L. 102-550, 106 Stat. 3672, 4089 (12 U.S.C. 1828
note); 12 U.S.C. 5365(i); 12 U.S.C. 5412(b)(2)(B).
0
2. In Sec. 325.202 add paragraph (m) to read as follows:
Sec. 325.202 Definitions.
* * * * *
(m) Stress test cycle means:
(i) Until October 1, 2015, the period beginning October 1 of a
calendar year and ending on September 30 of the following calendar
year, and
(ii) Beginning October 1, 2015, the period beginning January 1 of a
calendar year and ending on December 31 of that year.
0
3. In Sec. 325.203 revise intro text paragraph (c) to read as follows:
Sec. 325.203 Applicability.
* * * * *
(c) Covered banks that become subject to stress testing
requirements after October 9, 2012. A state nonmember bank or state
savings association that becomes a covered bank, as defined in Sec.
325.202 of this part, after March 31, 2014 and on or before March 31,
2015, shall conduct it first annual stress test in the stress test
cycle beginning January 1, 2016. A state nonmember bank or state
savings association that becomes a covered bank on or before March 31
of a given year (after 2014) shall conduct its first annual stress test
under this part in the next calendar year after the date the state
nonmember bank or state savings association becomes a covered bank. A
state nonmember bank or state savings association that becomes a
covered bank after March 31 of a given year (after 2014) shall conduct
its first annual stress test under this part in the second calendar
year after the date the state nonmember bank or state savings
association becomes a covered bank.
* * * * *
0
4. Revise Sec. 325.204 to read as follows:
Sec. 325.204 Annual stress tests required.
(a) General requirements.
(1) $10 billion to $50 billion covered bank. Prior to January 1,
2016, a $10 billion to $50 billion covered bank must conduct a stress
test on or before March 31 of each calendar year based on financial
data as of September 30 of the preceding calendar year. Effective
January 1, 2016, a $10 billion to $50 billion covered bank must conduct
a stress test on or before July 31 of each calendar year based on
financial data as of December 31 of the preceding calendar year.
(2) Over $50 billion covered bank. Prior to January 1, 2016, an
over $50 billion covered bank must conduct a stress test on or before
January 5 of each calendar year based on financial data as of September
30 of the preceding calendar year. Effective January 1, 2016, an over
$50 billion covered bank must conduct a stress test on or before April
7 of each calendar year based on
[[Page 37239]]
financial data as of December 31 of the preceding calendar year.
(b) Scenarios provided by the Corporation.
In conducting the stress test under this subpart, each covered bank
must use the scenarios provided the Corporation. The scenarios provided
by the Corporation will reflect a minimum of three sets of economic and
financial conditions, including: Baseline, adverse, and severely
adverse scenarios. The Corporation will provide a description of the
scenarios required under this section to each covered bank no later
than November 15 (for the stress tests beginning October 1, 2014) or
February 15 (for the stress test beginning January 1, 2016, and all
stress tests thereafter) of that calendar year.
(c) Significant trading activities. The Corporation may require a
covered bank with significant trading activities, as determined by the
Corporation, to include trading and counterparty components in its
adverse and severely adverse scenarios. The trading and counterparty
position data used in these components will be as of a date between
October 1 and December 1 (for the stress test beginning October 1,
2014) or between January 1 and March 1 (for the stress test beginning
January 1, 2016, and all stress tests thereafter) of that calendar year
selected by the Corporation and communicated to the covered bank no
later than December 1 (for the stress test beginning October 1, 2014)
or March 1 (for the stress test beginning January 1, 2016, and all
stress tests thereafter) of the calendar year.
0
5. Revise Sec. 325.206 paragraph (a) to read as follows:
Sec. 325.206 Required reports of stress test results to the FDIC and
the Board of Governors of the Federal Reserve System
(a) Report required for annual stress test results.
(1) $10 billion to $50 billion covered bank. Prior to January 1,
2016, a $10 billion to $50 billion covered bank must report to the FDIC
and to the Board on or before March 31 the results of the stress test
in the manner and form specified by the FDIC. Effective January 1,
2016, a $10 billion to $50 billion covered bank must report to the FDIC
and to the Board on or before July 31 the results of the stress test in
the manner and form specified by the FDIC.
(2) Over $50 billion covered bank. Prior to January 1, 2016, an
over $50 billion covered bank must report to the FDIC and to the Board,
on or before January 5, the results of the stress test in the manner
and form specified by the FDIC. Effective January 1, 2016, an over $50
billion covered bank must report to the FDIC and to the Board, on or
before April 7, the results of the stress test in the manner and form
specified by the FDIC.
* * * * *
0
6. Revise Sec. 325.207 paragraph (a) to read as follows:
Sec. 325.207 Publication of stress test results.
(a) Publication date.
(1) $10 billion to $50 billion covered bank. (i) Prior to January
1, 2016, a $10 billion to $50 billion covered bank must publish a
summary of the results of its annual stress test in the period starting
June 15 and ending June 30 (for the stress test cycle beginning October
1, 2014).
(ii) Effective January 1, 2016, a $10 billion to $50 billion
covered bank must publish a summary of the results of its annual stress
test in the period starting October 15 and ending October 31 (for the
stress test cycle beginning January 1, 2016 and for all annual stress
tests thereafter).
(2) Over $50 billion covered bank. (i) Prior to January 1, 2016, an
over $50 billion covered bank must publish a summary of the results of
its annual stress tests in the period starting March 15 and ending
March 31 (for the stress test cycle beginning October 1, 2014).
(ii) Effective January 1, 2016, an over $50 billion covered bank
must publish a summary of the results of its annual stress tests in the
period starting June 15 and ending July 15 (for the stress test cycle
beginning January 1, 2016, and for all annual stress tests thereafter)
provided:
(A) Unless the FDIC determines otherwise, if the over $50 billion
covered bank is a consolidated subsidiary of a bank holding company or
savings and loan holding company subject to supervisory stress tests
conducted by the Board of Governors of the Federal Reserve System under
12 CFR part 252, then, within the June 15 to July 15 period, such
covered bank may not publish the required summary of its annual stress
test earlier than the date that the Board of Governors of the Federal
Reserve System publishes the supervisory stress test results of the
covered bank's parent holding company. (B) If the Board of Governors of
the Federal Reserve System publishes the supervisory stress test
results of the covered bank's parent holding company prior to June 15,
then such covered bank may publish its stress test results prior to
June 15, but no later than July 15, through actual publication by the
covered bank or through publication by the parent holding company under
paragraph (b) of this section.
By order of the Board of Directors.
Dated at Washington, DC, this 13th day of June 2014.
Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
[FR Doc. 2014-14389 Filed 6-30-14; 8:45 am]
BILLING CODE 6714-01-P
