Annual Stress Test-Schedule Shift and Adjustments to Regulatory Capital Projections, 37231-37235 [2014-14416]
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37231
Proposed Rules
Federal Register
Vol. 79, No. 126
Tuesday, July 1, 2014
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
FOR FURTHER INFORMATION CONTACT:
Animal and Plant Health Inspection
Service
7 CFR Part 354
[Docket No. APHIS–2013–0021]
RIN 0579–AD77
User Fees for Agricultural Quarantine
and Inspection Services
Animal and Plant Health
Inspection Service, USDA.
ACTION: Proposed rule; reopening of
comment period.
AGENCY:
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For
information concerning program
operations, contact Mr. William E.
Thomas, AQI Coordinator, PPQ, APHIS,
4700 River Road, Unit 131, Riverdale,
MD 20737–1231; (301) 851–2306. For
information concerning rate
development, contact Mrs. Kris Caraher,
Chief, Review and Analysis Branch,
FMD, MRPBS, APHIS, 4700 River Road,
Unit 55, Riverdale, MD 20737; (301)
851–2852.
On April
25, 2014, we published in the Federal
Register (79 FR 22895–22908, Docket
No. APHIS–2013–0021) a proposal to
amend the user fee regulations by
adding new fee categories and adjusting
current fees charged for certain
agricultural quarantine and inspection
services that are provided in connection
with certain commercial vessels,
commercial trucks, commercial railroad
cars, commercial aircraft, and
international passengers arriving at
ports in the customs territory of the
United States. We also proposed to
adjust or remove the fee caps associated
with commercial trucks, commercial
vessels, and commercial railcars.
Comments on the proposed rule were
required to be received on or before June
24, 2014. We are reopening the
comment period on Docket No. APHIS–
2013–0021 for an additional 30 days.
This action will allow interested
persons additional time to prepare and
submit comments. We will also consider
all comments received between June 25,
2014 (the day after the close of the
original comment period) and the date
of this notice.
SUPPLEMENTARY INFORMATION:
We are reopening the
comment period for our proposed rule
to amend the user fee regulations by
adding new fee categories and adjusting
current fees charged for certain
agricultural quarantine and inspection
services that are provided in connection
with certain commercial vessels,
commercial trucks, commercial railroad
cars, commercial aircraft, and
international passengers arriving at
ports in the customs territory of the
United States. This action will allow
interested persons additional time to
prepare and submit comments.
DATES: The comment period for the
proposed rule published April 25, 2014
(79 FR 22895) is reopened. We will
consider all comments that we receive
on or before July 24, 2014.
ADDRESSES: You may submit comments
by either of the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov/
#!docketDetail;D=APHIS-2013-0021.
• Postal Mail/Commercial Delivery:
Send your comment to Docket No.
APHIS–2013–0021, Regulatory Analysis
and Development, PPD, APHIS, Station
3A–03.8, 4700 River Road, Unit 118,
Riverdale, MD 20737–1238.
Supporting documents and any
comments we receive on this docket
may be viewed at https://
www.regulations.gov/
#!docketDetail;D=APHIS-2013-0021 or
in our reading room, which is located in
SUMMARY:
room 1141 of the USDA South Building,
14th Street and Independence Avenue
SW., Washington, DC. Normal reading
room hours are 8 a.m. to 4:30 p.m.,
Monday through Friday, except
holidays. To be sure someone is there to
help you, please call (202) 799–7039
before coming.
Authority: 7 U.S.C. 7701–7772, 7781–7786,
and 8301–8317; 21 U.S.C. 136 and 136a; 49
U.S.C. 80503; 7 CFR 2.22, 2.80, and 371.3.
Done in Washington, DC, this 26th day of
June 2014.
Michael C. Gregoire,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. 2014–15480 Filed 6–30–14; 8:45 am]
BILLING CODE 3410–34–P
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 46
[Docket ID. OCC–2014–0015]
RIN 1557–AD85
Annual Stress Test—Schedule Shift
and Adjustments to Regulatory Capital
Projections
Office of the Comptroller of the
Currency, Treasury.
ACTION: Proposed rule.
AGENCY:
The Office of the Comptroller
of the Currency (OCC) proposes to
adjust the timing of the annual stress
testing cycle and to clarify the method
used to calculate regulatory capital in
the stress tests. The proposal would
shift the dates of the annual stress
testing cycle by approximately three
months. The proposal also would
provide that covered institutions will
not have to calculate their regulatory
capital requirements using the advanced
approaches method in 12 CFR part 3,
subpart E until the stress testing cycle
beginning on January 1, 2016.
DATES: Comments must be received on
or before September 2, 2014.
ADDRESSES: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by the
Federal eRulemaking Portal or email, if
possible. Please use the title ‘‘Annual
Stress Test’’ to facilitate the organization
and distribution of the comments. You
may submit comments by any of the
following methods:
• Federal eRulemaking Portal—
‘‘Regulations.gov’’: Go to
www.regulations.gov. Enter ‘‘Docket ID
OCC–2014–0015’’ in the Search Box and
click ‘‘Search.’’ Results can be filtered
using the filtering tools on the left side
of the screen. Click on ‘‘Comment Now’’
to submit public comments.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting
public comments.
• Email: regs.comments@occ
.treas.gov.
• Mail: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
SUMMARY:
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Street SW., Suite 3E–218, Mail Stop
9W–11, Washington, DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW., Suite 3E–218, Mail Stop
9W–11, Washington, DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2014–0015’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish those comments on the
Regulations.gov Web site without
change, including any business or
personal information that you provide
such as name and address information,
email addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically:
Go to www.regulations.gov. Enter
‘‘Docket ID OCC–2014–0015’’ in the
Search box and click ‘‘Search.’’
Comments can be filtered by Agency
using the filtering tools on the left side
of the screen.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for viewing
public comments, viewing other
supporting and related materials, and
viewing the docket after the close of the
comment period.
• Viewing Comments Personally: You
may personally inspect and photocopy
comments at the OCC, 400 7th Street
SW., Washington, DC. For security
reasons, the OCC requires that visitors
make an appointment to inspect
comments. You may do so by calling
(202) 649–6700. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and to submit to security screening in
order to inspect and photocopy
comments.
• Docket: You may also view or
request available background
documents and project summaries using
the methods described above.
FOR FURTHER INFORMATION CONTACT:
Robert Scavotto, Deputy Director,
International Analysis and Banking
Condition, (202) 649–5540; William
Russell, National Bank Examiner, Large
Bank Supervision, (202) 649–7157; Kari
Falkenborg, National Bank Examiner,
Midsize and Community Bank
Supervision, (202) 649–6831; Ron
Shimabukuro, Senior Counsel, or Henry
Barkhausen, Attorney, Legislative and
Regulatory Activities Division, (202)
649–5490; for persons who are deaf or
hard of hearing, TTY, (202) 649–5597.
SUPPLEMENTARY INFORMATION:
I. Introduction and Background
Section 165(i) of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (‘‘Dodd-Frank Act’’) requires two
types of stress tests. Section 165(i)(1)
requires the Board of Governors of the
Federal Reserve (Board) to conduct
annual stress tests of holding companies
with $50 billion or more in 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 assets to conduct annual stress
tests themselves (‘‘company-run stress
tests’’).
In October 2012, the OCC, the Board,
and the Federal Deposit Insurance
Corporation issued final rules
implementing the company-run stress
tests required by the Dodd-Frank Act.
Under these final rules, covered
institutions with $50 billion or more in
assets are required to conduct the
company-run stress tests at the end of
the calendar year, when there are often
other demands on resources. Under the
current OCC stress testing rule, the OCC
distributes stress scenarios by November
15.1 Covered institutions use their
financial position as of September 30
(‘‘as of date’’) and must make
projections that estimate their financial
position under the different stress
scenarios. Covered institutions with $50
billion or more in assets must submit
the results of their stress tests by
January 5. Covered institutions with $50
billion or more are required to publish
a summary of their stress test results
between March 15 and March 31.
Covered institutions with between $10
and $50 billion in assets are required to
submit their stress test results to the
OCC by March 31 and publish a
summary of their results between June
15 and June 30.
On October 11, 2013, the OCC
published revisions to its regulatory
capital rules implementing the Basel III
international capital standards (Basel III
framework).2 The OCC is now proposing
to adjust the schedule contained in its
stress testing rule to relieve certain
covered institutions of the burden
associated with the January 5
submission deadline and to clarify the
method to be used to calculate
regulatory capital in the stress tests.
II. Description of the Proposed Rule
A. Shift in Stress Testing Cycle
The OCC is proposing to shift the
dates of the stress testing cycle by
approximately three months. This will
relieve covered institutions with $50
billion or more in assets of the
obligation to complete their stress
testing submissions by January 5, a time
of year when these institutions have
other year-end obligations. The OCC
believes that the annual stress test is an
important risk-management tool, and
covered institutions should conduct
these tests at a time when they are better
able to manage their resources. The
stress testing cycle that, under the
current rule, begins on October 1, 2015,
would instead begin on January 1, 2016.
The following table summarizes the
proposed date changes.
TABLE 1—REVISED ANNUAL STRESS TEST TIMELINE FOR COVERED INSTITUTIONS WITH $50 BILLION OR MORE IN ASSETS
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Action required
Current rule
‘‘As of’’ Date for Financial Data Used by Stress
Test.
Distribution of Stress Scenarios by OCC ...........
Submission of Stress Test Results ....................
Disclosure of Results Summary .........................
September 30 ..................................................
December 31.
By November 15 ..............................................
By January 5 ....................................................
Between March 15 and March 31.
By February 15.
By April 7.
Between June 15 and July 15 except no earlier than Board publication of the supervisory stress test results of the bank holding
company.
1 These scenarios provided by the OCC reflect a
minimum of three set of economic and financial
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conditions, including baseline, adverse, and
severely adverse scenarios.
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TABLE 2—REVISED ANNUAL STRESS TEST TIMELINE FOR COVERED INSTITUTIONS WITH BETWEEN $10 AND $50 BILLION
IN ASSETS
Current rule
‘‘As of’’ Date for Financial Data Used by Stress
Test.
Distribution of Stress Scenarios by OCC ...........
Submission of Stress Test Results ....................
Disclosure of Results Summary .........................
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Action required
September 30 ..................................................
December 31.
By November 15 ..............................................
By March 31 .....................................................
Between June 15 and June 30 ........................
By February 15.
By July 31.
Between October 15 and October 31.
Under the proposed rule, covered
institutions with $50 billion or more in
assets must make the required
disclosure of stress test results between
June 15 and July 15; however, within
this period a covered institution that is
a consolidated subsidiary of a bank
holding company subject to supervisory
stress tests conducted by the Board
pursuant to 12 CFR part 252 may not
disclose its results until the Board has
published the supervisory stress test
results of the covered institution’s
parent holding company. In addition, if
the Board publishes the supervisory
stress test results of the covered
institution’s parent holding company
prior to June 15, then such covered
institution may satisfy its publication
requirement either through actual
publication by the covered institution or
through publication by the parent
holding company pursuant to 12 CFR
46.8(b).
With respect to covered institutions
with assets between $10 and $50 billion,
it should be noted that pursuant to 12
CFR 46.3(e) a covered institution may
elect to conduct its stress test under the
stress test requirements applicable to a
covered institution with assets of $50
billion and over. In that case we note
that the covered institution also would
be subject to the proposed disclosure
requirements applicable to covered
institutions with $50 billion or more in
assets.
The proposed rule would also amend
the applicability provisions in § 46.3 of
the Annual Stress Test rule to reflect the
changed timeline. Currently, a national
bank or Federal savings association that
becomes a covered institution must
conduct its first annual stress test
beginning in the next calendar year after
the date the national bank or Federal
savings association becomes a covered
institution. Under the new stress testing
timeline, if this applicability provision
were left unchanged, if a national bank
or Federal savings association became a
covered institution 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 institution. The
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current Annual Stress Test rule provides
a minimum of nine months between the
date on which a national bank or
Federal savings association becomes a
covered institution and the start date of
the stress testing cycle in which the
covered institution must conduct it first
stress test. To preserve the nine-month
minimum the proposed rule would
establish a March 31 cutoff date. A
national bank or Federal savings
association that becomes a covered
institution 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 national bank or
Federal savings association that
becomes a covered institution on March
31, 2015 would be required to conduct
its first stress test in the stress testing
cycle beginning January 1, 2016. A
national bank or Federal savings
association that becomes a covered
institution 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 national bank or
Federal savings association becomes a
covered institution. For example, a
national bank or Federal savings
association that becomes a covered
institution on June 30, 2015 would be
required to conduct its first stress test in
the stress testing cycle beginning
January 1, 2017.
B. Clarification on the Use of Basel III
Advanced Approaches
On October 11, 2013, the OCC
published revised risk-based and
leverage capital requirements that
implement the Basel III framework.3 In
light of the issuance of the Basel III
framework, the OCC is clarifying when
covered institutions would be required
to estimate their minimum regulatory
capital ratios over the stress-test
planning horizon using the Basel III
advanced approaches methodology. The
current OCC stress testing rule requires
covered institutions to estimate the
impact of stress scenarios on ‘‘the
covered institution’s regulatory capital
levels and ratios applicable to the
covered institution under 12 CFR part 3
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(for national banks) or part 167 (for
Federal savings associations), as
applicable, and any other capital ratios
specified by the OCC.’’ 4 A national
bank or Federal savings association that
is an advanced approaches banking
organization is required to use the
advanced approaches to calculate its
minimum regulatory capital ratios if it
has conducted a satisfactory parallel
run.5 This proposal would provide that
no covered institution is required to use
the advanced approaches in its stress
testing projections until the stress
testing cycle beginning on January 1,
2016—even if an organization has
previously exited parallel run.
On February 14, 2014, the OCC
announced that certain national banks
had completed a successful parallel run.
Given the operational complexity
associated with incorporating the
advanced approaches into the stress
testing process, the proposal would
clarify that incorporating the advanced
approaches into stress testing would be
deferred for one stress testing cycle. The
transition period will provide the OCC
with sufficient time to integrate the
advanced approaches into its stress
testing examination processes and to
provide guidance to advanced
approaches banking organizations
regarding supervisory expectations on
the use of the advanced approaches in
stress testing projections.
III. Request for Comment
The OCC requests comment on all
aspects of the proposal.
IV. Regulatory Analysis
Paperwork Reduction Act
Under the Paperwork Reduction Act
(PRA) (44 U.S.C. 3501–3520), the OCC
may not conduct or sponsor, and a
person is not required to respond to, an
information collection unless the
information collection displays a valid
Office of Management and Budget
(OMB) control number. This notice of
4 12
CFR 46.6(a)(2).
satisfactory parallel run is defined as a period
of no less than four consecutive calendar quarters
during which a banking organization complies with
certain qualification requirements. 12 CFR 3.21(c).
5A
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proposed rulemaking amends 12 CFR
part 46, which has an approved
information collection under the PRA
(OMB Control No. 1557–0311). The
amendments proposed today do not
introduce any new collections of
information, nor do they amend 12 CFR
part 46 in a way that modifies the
collection of information that OMB has
approved. Therefore, this proposal does
not require a PRA submission to OMB.
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Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA),
5 U.S.C. 601 et seq., requires generally
that, in connection with a notice of
proposed rulemaking, an agency prepare
and make available for public comment
an initial regulatory flexibility analysis
that describes the impact of a proposed
rule on small entities. However, the
regulatory flexibility analysis otherwise
required under the RFA is not required
if an agency certifies that the rule will
not have a significant economic impact
on a substantial number of small entities
(defined in regulations promulgated by
the Small Business Administration
(SBA) to include banking organizations
with total assets of less than or equal to
$500 million) and publishes its
certification and a brief explanatory
statement in the Federal Register
together with the rule.
Approximately 1,173 OCC-supervised
banks are small entities based on the
SBA’s definition of small entities for
RFA purposes (356 federal savings
associations, 796 national banks, and 21
trust companies). As discussed in the
SUPPLEMENTARY INFORMATION above, the
proposed modified dates of the annual
stress test cycle will only affect
institutions with more than $10 billion
in total assets. As such, pursuant to
section 605(b) of the RFA, the OCC
certifies that this proposal would not
have a significant economic impact on
a substantial number of small entities
because no small national banks or
Federal savings associations would be
affected by the proposal. Accordingly,
an initial regulatory flexibility analysis
is not required.
Unfunded Mandates Reform Act
The OCC has analyzed the proposed
rule under the factors in the Unfunded
Mandates Reform Act of 1995 (UMRA)
(2 U.S.C. 1532). Under this analysis, the
OCC considered whether the proposed
rule includes a Federal mandate that
may result in the expenditure by State,
local, and tribal governments, in the
aggregate, or by the private sector, of
$100 million or more in any one year
(adjusted annually for inflation). The
OCC has determined that this proposed
rule will not result in expenditures by
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State, local, and tribal governments, or
the private sector, of $100 million or
more in any one year. Accordingly, this
proposal is not subject to section 202 of
the Unfunded Mandates Act (2 U.S.C.
1532).
Plain Language
Section 722 of the Gramm-LeachBliley Act requires the Federal banking
agencies to use plain language in all
proposed and final rules published after
January 1, 2000. The OCC has sought to
present the proposed rule in a simple
and straightforward manner, and invites
comment on the use of plain language.
For example:
• Has the OCC organized the material
to suit your needs? If not, how could the
OCC present the proposed rule more
clearly?
• Are the requirements in the
proposed rule clearly stated? If not, how
could the proposed 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 OCC
incorporate to make the regulation
easier to understand?
List of Subjects in 12 CFR Part 46
Banking, Banks, Capital, Disclosures,
National banks, Recordkeeping, Risk,
Savings associations, Stress test.
Authority and Issuance
For the reasons set forth in the
preamble, the OCC proposes to amend
12 CFR part 46 as follows:
PART 46—ANNUAL STRESS TEST
1. The authority citation for part 46
continues to read as follows:
■
Authority: 12 U.S.C. 93a; 12 U.S.C.
1463(a)(2); 12 U.S.C. 5365(i)(2); 12 U.S.C.
5412(b)(2)(B).
2. Section 46.3 is amended by revising
paragraph (c) to read as follows:
■
§ 46.3
Applicability.
*
*
*
*
*
(c) Covered institutions that become
subject to stress testing requirements
after October 9, 2012. A national bank
or Federal savings association that
becomes a covered institution, as
defined in § 46.2 of this part, after
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March 31, 2014 and on or before March
31, 2015 shall conduct it first annual
stress test in the stress test beginning
January 1, 2016. A national bank or
Federal savings association that
becomes a covered institution 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 national
bank or Federal savings association
becomes a covered institution. A
national bank or Federal savings
association that becomes a covered
institution 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
national bank or Federal savings
association becomes a covered
institution.
*
*
*
*
*
■ 3. Section 46.5 is amended by revising
paragraphs (a) through (c) to read as
follows:
§ 46.5
Annual stress test.
*
*
*
*
*
(a) Financial data. A covered
institution must use financial data as of
September 30 (for the stress test
beginning October 1, 2014) or December
31 (for the stress test beginning January
1, 2016, and all stress tests thereafter) of
that calendar year.
(b) Scenarios provided by the OCC. In
conducting the stress test under this
part, each covered institution must use
the scenarios provided by the OCC. The
scenarios provided by the OCC will
reflect a minimum of three sets of
economic and financial conditions,
including baseline, adverse, and
severely adverse scenarios. The OCC
will provide a description of the
scenarios required to be used by each
covered institution no later than
November 15 (for the stress test
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
OCC may require a covered institution
with significant trading activities, as
determined by the OCC, to include
trading and counterparty components in
its adverse and severely adverse
scenarios. The trading and counterparty
position data to be used in this
component 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 that will be selected by
the OCC and communicated to the
covered institution no later than
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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.
*
*
*
*
*
■ 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.
*
*
*
*
*
■ 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.
*
*
*
*
*
■ 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
VerDate Mar<15>2010
16:47 Jun 30, 2014
Jkt 232001
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).
*
*
*
*
*
Dated: June 11, 2014.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 2014–14416 Filed 6–30–14; 8:45 am]
BILLING CODE P
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Frm 00005
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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:
E:\FR\FM\01JYP1.SGM
01JYP1
]]>Agencies
[Federal Register Volume 79, Number 126 (Tuesday, July 1, 2014)]
[Proposed Rules]
[Pages 37231-37235]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14416]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 46
[Docket ID. OCC-2014-0015]
RIN 1557-AD85
Annual Stress Test--Schedule Shift and Adjustments to Regulatory
Capital Projections
AGENCY: Office of the Comptroller of the Currency, Treasury.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Office of the Comptroller of the Currency (OCC) proposes
to adjust the timing of the annual stress testing cycle and to clarify
the method used to calculate regulatory capital in the stress tests.
The proposal would shift the dates of the annual stress testing cycle
by approximately three months. The proposal also would provide that
covered institutions will not have to calculate their regulatory
capital requirements using the advanced approaches method in 12 CFR
part 3, subpart E until the stress testing cycle beginning on January
1, 2016.
DATES: Comments must be received on or before September 2, 2014.
ADDRESSES: Because paper mail in the Washington, DC area and at the OCC
is subject to delay, commenters are encouraged to submit comments by
the Federal eRulemaking Portal or email, if possible. Please use the
title ``Annual Stress Test'' to facilitate the organization and
distribution of the comments. You may submit comments by any of the
following methods:
Federal eRulemaking Portal--``Regulations.gov'': Go to
www.regulations.gov. Enter ``Docket ID OCC-2014-0015'' in the Search
Box and click ``Search.'' Results can be filtered using the filtering
tools on the left side of the screen. Click on ``Comment Now'' to
submit public comments.
Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov, including instructions for
submitting public comments.
Email: regs.comments@occ .treas.gov.
Mail: Legislative and Regulatory Activities Division,
Office of the Comptroller of the Currency, 400 7th
[[Page 37232]]
Street SW., Suite 3E-218, Mail Stop 9W-11, Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW., Suite 3E-218,
Mail Stop 9W-11, Washington, DC 20219.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``Docket ID OCC-2014-0015'' in your comment. In general, the OCC will
enter all comments received into the docket and publish those comments
on the Regulations.gov Web site without change, including any business
or personal information that you provide such as name and address
information, email addresses, or phone numbers. Comments received,
including attachments and other supporting materials, are part of the
public record and subject to public disclosure. Do not enclose any
information in your comment or supporting materials that you consider
confidential or inappropriate for public disclosure.
You may review comments and other related materials that pertain to
this rulemaking action by any of the following methods:
Viewing Comments Electronically: Go to
www.regulations.gov. Enter ``Docket ID OCC-2014-0015'' in the Search
box and click ``Search.'' Comments can be filtered by Agency using the
filtering tools on the left side of the screen.
Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov, including instructions for
viewing public comments, viewing other supporting and related
materials, and viewing the docket after the close of the comment
period.
Viewing Comments Personally: You may personally inspect
and photocopy comments at the OCC, 400 7th Street SW., Washington, DC.
For security reasons, the OCC requires that visitors make an
appointment to inspect comments. You may do so by calling (202) 649-
6700. Upon arrival, visitors will be required to present valid
government-issued photo identification and to submit to security
screening in order to inspect and photocopy comments.
Docket: You may also view or request available background
documents and project summaries using the methods described above.
FOR FURTHER INFORMATION CONTACT: Robert Scavotto, Deputy Director,
International Analysis and Banking Condition, (202) 649-5540; William
Russell, National Bank Examiner, Large Bank Supervision, (202) 649-
7157; Kari Falkenborg, National Bank Examiner, Midsize and Community
Bank Supervision, (202) 649-6831; Ron Shimabukuro, Senior Counsel, or
Henry Barkhausen, Attorney, Legislative and Regulatory Activities
Division, (202) 649-5490; for persons who are deaf or hard of hearing,
TTY, (202) 649-5597.
SUPPLEMENTARY INFORMATION:
I. Introduction and Background
Section 165(i) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (``Dodd-Frank Act'') requires two types of stress tests.
Section 165(i)(1) requires the Board of Governors of the Federal
Reserve (Board) to conduct annual stress tests of holding companies
with $50 billion or more in 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
assets to conduct annual stress tests themselves (``company-run stress
tests'').
In October 2012, the OCC, the Board, and the Federal Deposit
Insurance Corporation issued final rules implementing the company-run
stress tests required by the Dodd-Frank Act. Under these final rules,
covered institutions with $50 billion or more in assets are required to
conduct the company-run stress tests at the end of the calendar year,
when there are often other demands on resources. Under the current OCC
stress testing rule, the OCC distributes stress scenarios by November
15.\1\ Covered institutions use their financial position as of
September 30 (``as of date'') and must make projections that estimate
their financial position under the different stress scenarios. Covered
institutions with $50 billion or more in assets must submit the results
of their stress tests by January 5. Covered institutions with $50
billion or more are required to publish a summary of their stress test
results between March 15 and March 31. Covered institutions with
between $10 and $50 billion in assets are required to submit their
stress test results to the OCC by March 31 and publish a summary of
their results between June 15 and June 30.
---------------------------------------------------------------------------
\1\ These scenarios provided by the OCC reflect a minimum of
three set of economic and financial conditions, including baseline,
adverse, and severely adverse scenarios.
---------------------------------------------------------------------------
On October 11, 2013, the OCC published revisions to its regulatory
capital rules implementing the Basel III international capital
standards (Basel III framework).\2\ The OCC is now proposing to adjust
the schedule contained in its stress testing rule to relieve certain
covered institutions of the burden associated with the January 5
submission deadline and to clarify the method to be used to calculate
regulatory capital in the stress tests.
---------------------------------------------------------------------------
\2\ 78 FR 62018.
---------------------------------------------------------------------------
II. Description of the Proposed Rule
A. Shift in Stress Testing Cycle
The OCC is proposing to shift the dates of the stress testing cycle
by approximately three months. This will relieve covered institutions
with $50 billion or more in assets of the obligation to complete their
stress testing submissions by January 5, a time of year when these
institutions have other year-end obligations. The OCC believes that the
annual stress test is an important risk-management tool, and covered
institutions should conduct these tests at a time when they are better
able to manage their resources. The stress testing cycle that, under
the current rule, begins on October 1, 2015, would instead begin on
January 1, 2016. The following table summarizes the proposed date
changes.
Table 1--Revised Annual Stress Test Timeline for Covered Institutions
With $50 Billion or More in Assets
------------------------------------------------------------------------
Action required Current rule Proposed rule
------------------------------------------------------------------------
``As of'' Date for Financial September 30........ December 31.
Data Used by Stress Test.
Distribution of Stress By November 15...... By February 15.
Scenarios by OCC.
Submission of Stress Test By January 5........ By April 7.
Results.
Disclosure of Results Between March 15 and Between June 15 and
Summary. March 31. July 15 except no
earlier than Board
publication of the
supervisory stress
test results of the
bank holding
company.
------------------------------------------------------------------------
[[Page 37233]]
Table 2--Revised Annual Stress Test Timeline for Covered Institutions
With Between $10 and $50 Billion in Assets
------------------------------------------------------------------------
Action required Current rule Proposed rule
------------------------------------------------------------------------
``As of'' Date for Financial September 30........ December 31.
Data Used by Stress Test.
Distribution of Stress By November 15...... By February 15.
Scenarios by OCC.
Submission of Stress Test By March 31......... By July 31.
Results.
Disclosure of Results Between June 15 and Between October 15
Summary. June 30. and October 31.
------------------------------------------------------------------------
Under the proposed rule, covered institutions with $50 billion or
more in assets must make the required disclosure of stress test results
between June 15 and July 15; however, within this period a covered
institution that is a consolidated subsidiary of a bank holding company
subject to supervisory stress tests conducted by the Board pursuant to
12 CFR part 252 may not disclose its results until the Board has
published the supervisory stress test results of the covered
institution's parent holding company. In addition, if the Board
publishes the supervisory stress test results of the covered
institution's parent holding company prior to June 15, then such
covered institution may satisfy its publication requirement either
through actual publication by the covered institution or through
publication by the parent holding company pursuant to 12 CFR 46.8(b).
With respect to covered institutions with assets between $10 and
$50 billion, it should be noted that pursuant to 12 CFR 46.3(e) a
covered institution may elect to conduct its stress test under the
stress test requirements applicable to a covered institution with
assets of $50 billion and over. In that case we note that the covered
institution also would be subject to the proposed disclosure
requirements applicable to covered institutions with $50 billion or
more in assets.
The proposed rule would also amend the applicability provisions in
Sec. 46.3 of the Annual Stress Test rule to reflect the changed
timeline. Currently, a national bank or Federal savings association
that becomes a covered institution must conduct its first annual stress
test beginning in the next calendar year after the date the national
bank or Federal savings association becomes a covered institution.
Under the new stress testing timeline, if this applicability provision
were left unchanged, if a national bank or Federal savings association
became a covered institution 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 institution. The current Annual Stress Test
rule provides a minimum of nine months between the date on which a
national bank or Federal savings association becomes a covered
institution and the start date of the stress testing cycle in which the
covered institution must conduct it first stress test. To preserve the
nine-month minimum the proposed rule would establish a March 31 cutoff
date. A national bank or Federal savings association that becomes a
covered institution 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 national bank or Federal savings association that
becomes a covered institution on March 31, 2015 would be required to
conduct its first stress test in the stress testing cycle beginning
January 1, 2016. A national bank or Federal savings association that
becomes a covered institution 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 national bank or Federal savings association becomes
a covered institution. For example, a national bank or Federal savings
association that becomes a covered institution on June 30, 2015 would
be required to conduct its first stress test in the stress testing
cycle beginning January 1, 2017.
B. Clarification on the Use of Basel III Advanced Approaches
On October 11, 2013, the OCC published revised risk-based and
leverage capital requirements that implement the Basel III
framework.\3\ In light of the issuance of the Basel III framework, the
OCC is clarifying when covered institutions would be required to
estimate their minimum regulatory capital ratios over the stress-test
planning horizon using the Basel III advanced approaches methodology.
The current OCC stress testing rule requires covered institutions to
estimate the impact of stress scenarios on ``the covered institution's
regulatory capital levels and ratios applicable to the covered
institution under 12 CFR part 3 (for national banks) or part 167 (for
Federal savings associations), as applicable, and any other capital
ratios specified by the OCC.'' \4\ A national bank or Federal savings
association that is an advanced approaches banking organization is
required to use the advanced approaches to calculate its minimum
regulatory capital ratios if it has conducted a satisfactory parallel
run.\5\ This proposal would provide that no covered institution is
required to use the advanced approaches in its stress testing
projections until the stress testing cycle beginning on January 1,
2016--even if an organization has previously exited parallel run.
---------------------------------------------------------------------------
\3\ 78 FR 62018.
\4\ 12 CFR 46.6(a)(2).
\5\ A satisfactory parallel run is defined as a period of no
less than four consecutive calendar quarters during which a banking
organization complies with certain qualification requirements. 12
CFR 3.21(c).
---------------------------------------------------------------------------
On February 14, 2014, the OCC announced that certain national banks
had completed a successful parallel run. Given the operational
complexity associated with incorporating the advanced approaches into
the stress testing process, the proposal would clarify that
incorporating the advanced approaches into stress testing would be
deferred for one stress testing cycle. The transition period will
provide the OCC with sufficient time to integrate the advanced
approaches into its stress testing examination processes and to provide
guidance to advanced approaches banking organizations regarding
supervisory expectations on the use of the advanced approaches in
stress testing projections.
III. Request for Comment
The OCC requests comment on all aspects of the proposal.
IV. Regulatory Analysis
Paperwork Reduction Act
Under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501-3520), the
OCC may not conduct or sponsor, and a person is not required to respond
to, an information collection unless the information collection
displays a valid Office of Management and Budget (OMB) control number.
This notice of
[[Page 37234]]
proposed rulemaking amends 12 CFR part 46, which has an approved
information collection under the PRA (OMB Control No. 1557-0311). The
amendments proposed today do not introduce any new collections of
information, nor do they amend 12 CFR part 46 in a way that modifies
the collection of information that OMB has approved. Therefore, this
proposal does not require a PRA submission to OMB.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq.,
requires generally that, in connection with a notice of proposed
rulemaking, an agency prepare and make available for public comment an
initial regulatory flexibility analysis that describes the impact of a
proposed rule on small entities. However, the regulatory flexibility
analysis otherwise required under the RFA is not required if an agency
certifies that the rule will not have a significant economic impact on
a substantial number of small entities (defined in regulations
promulgated by the Small Business Administration (SBA) to include
banking organizations with total assets of less than or equal to $500
million) and publishes its certification and a brief explanatory
statement in the Federal Register together with the rule.
Approximately 1,173 OCC-supervised banks are small entities based
on the SBA's definition of small entities for RFA purposes (356 federal
savings associations, 796 national banks, and 21 trust companies). As
discussed in the SUPPLEMENTARY INFORMATION above, the proposed modified
dates of the annual stress test cycle will only affect institutions
with more than $10 billion in total assets. As such, pursuant to
section 605(b) of the RFA, the OCC certifies that this proposal would
not have a significant economic impact on a substantial number of small
entities because no small national banks or Federal savings
associations would be affected by the proposal. Accordingly, an initial
regulatory flexibility analysis is not required.
Unfunded Mandates Reform Act
The OCC has analyzed the proposed rule under the factors in the
Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under this
analysis, the OCC considered whether the proposed rule includes a
Federal mandate that may result in the expenditure by State, local, and
tribal governments, in the aggregate, or by the private sector, of $100
million or more in any one year (adjusted annually for inflation). The
OCC has determined that this proposed rule will not result in
expenditures by State, local, and tribal governments, or the private
sector, of $100 million or more in any one year. Accordingly, this
proposal is not subject to section 202 of the Unfunded Mandates Act (2
U.S.C. 1532).
Plain Language
Section 722 of the Gramm-Leach-Bliley Act requires the Federal
banking agencies to use plain language in all proposed and final rules
published after January 1, 2000. The OCC has sought to present the
proposed rule in a simple and straightforward manner, and invites
comment on the use of plain language. For example:
Has the OCC organized the material to suit your needs? If
not, how could the OCC present the proposed rule more clearly?
Are the requirements in the proposed rule clearly stated?
If not, how could the proposed 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 OCC incorporate to make the
regulation easier to understand?
List of Subjects in 12 CFR Part 46
Banking, Banks, Capital, Disclosures, National banks,
Recordkeeping, Risk, Savings associations, Stress test.
Authority and Issuance
For the reasons set forth in the preamble, the OCC proposes to
amend 12 CFR part 46 as follows:
PART 46--ANNUAL STRESS TEST
0
1. The authority citation for part 46 continues to read as follows:
Authority: 12 U.S.C. 93a; 12 U.S.C. 1463(a)(2); 12 U.S.C.
5365(i)(2); 12 U.S.C. 5412(b)(2)(B).
0
2. Section 46.3 is amended by revising paragraph (c) to read as
follows:
Sec. 46.3 Applicability.
* * * * *
(c) Covered institutions that become subject to stress testing
requirements after October 9, 2012. A national bank or Federal savings
association that becomes a covered institution, as defined in Sec.
46.2 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 beginning
January 1, 2016. A national bank or Federal savings association that
becomes a covered institution 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 national bank or Federal
savings association becomes a covered institution. A national bank or
Federal savings association that becomes a covered institution 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 national bank or Federal savings association becomes a covered
institution.
* * * * *
0
3. Section 46.5 is amended by revising paragraphs (a) through (c) to
read as follows:
Sec. 46.5 Annual stress test.
* * * * *
(a) Financial data. A covered institution must use financial data
as of September 30 (for the stress test beginning October 1, 2014) or
December 31 (for the stress test beginning January 1, 2016, and all
stress tests thereafter) of that calendar year.
(b) Scenarios provided by the OCC. In conducting the stress test
under this part, each covered institution must use the scenarios
provided by the OCC. The scenarios provided by the OCC will reflect a
minimum of three sets of economic and financial conditions, including
baseline, adverse, and severely adverse scenarios. The OCC will provide
a description of the scenarios required to be used by each covered
institution no later than November 15 (for the stress test 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 OCC may require a covered
institution with significant trading activities, as determined by the
OCC, to include trading and counterparty components in its adverse and
severely adverse scenarios. The trading and counterparty position data
to be used in this component 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 that will be
selected by the OCC and communicated to the covered institution no
later than
[[Page 37235]]
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
4. Section 46.6 is amended by revising paragraph (a)(2) to read as
follows:
Sec. 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.
* * * * *
0
5. Section 46.7 is amended by revising paragraphs (a) and (b) to read
as follows:
Sec. 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.
* * * * *
0
6. In Sec. 46.8, the heading for paragraph (a) is republished for
reader reference, and paragraphs (a)(1), and (2) are revised to read as
follows:
Sec. 46.8 Publication of disclosures
(a) Publication date--(1) Over $50 billion covered institution. (i)
Prior to 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).
* * * * *
Dated: June 11, 2014.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 2014-14416 Filed 6-30-14; 8:45 am]
BILLING CODE P
