Agency Information Collection Activities: Revision of an Approved Information Collection; Comment Request; Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions With Total Consolidated Assets of $50 Billion or More Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, 53835-53838 [2014-21493]

Download as PDF tkelley on DSK3SPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 175 / Wednesday, September 10, 2014 / Notices On July 14, 2014, NYCT requested another Buy America waiver for the pads and rubber boots to be procured for its South Ferry Station Project. Both NYCT and Construction Polymers Technologies, Inc. (CPT), the manufacturer of the concrete block for which the pad and rubber boots are components, have been conducting their own searches to find a U.S.manufactured pad and rubber boot. On August 20, 2014, FTA confirmed that the U.S.-manufacturing processes of the pad and rubber boot that CPT had found meet the requirements of Buy America. However, NYCT asserts that safety testing of U.S.-manufactured pads and boots must be conducted before they can be used in NYCT’s LVT system. NYCT represents that all of the necessary testing that it must undertake with respect to new and untested items such as the pad and the boot will take approximately three months after CPT conducts its own testing and provides its results to NYCT. FTA has been informed that CPT expects to produce its test results to NYCT on or about September 15, 2014. Because of the timing of its contract award, which NYCT anticipates will occur by September 30, 2014, as well as the construction schedule, NYCT requested a waiver. If the waiver is not granted, NYCT asserts that there would be no Buy America compliant items that also meet its safety specifications, which cannot be waived. On August 20, 2014, FTA published a Federal Register notice requesting comment on NYCT’s waiver request. 79 FR 49371. No comments were received to the docket. Notwithstanding FTA’s determination that the U.S.-made pad and rubber boot that CPT has found meets the Buy America requirements for manufactured components, because testing for the new pads and rubber boots must be performed that would cause delays to the South Ferry Station Project, FTA is hereby granting a non-availability waiver for the pad and rubber boot. The waiver is limited to a single procurement for the South Ferry Station Project and conditioned upon NYCT completing its testing of the U.S.-made pad and rubber boot within approximately three months of receipt of CPT’s test results. NYCT must notify FTA’s Regional Counsel for Region II in writing within five business days of receipt of CPT’s test results, and within five business days of completion of its testing regarding the results of testing. Once all testing is completed and if the report completed by NIST of potential U.S.manufacturers for the pad and rubber boot. VerDate Mar<15>2010 19:04 Sep 09, 2014 Jkt 232001 testing confirms that the U.S-made pads and rubber boots meet NYCT’s safety specifications, FTA expects NYCT to substitute the U.S.-made pads and rubber boots for the foreign-made items to the extent possible. Dana Nifosi, Acting Chief Counsel. [FR Doc. 2014–21547 Filed 9–9–14; 8:45 am] BILLING CODE;P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency Agency Information Collection Activities: Revision of an Approved Information Collection; Comment Request; Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions With Total Consolidated Assets of $50 Billion or More Under the Dodd-Frank Wall Street Reform and Consumer Protection Act Office of the Comptroller of the Currency, Treasury (OCC). ACTION: Notice and request for comment. AGENCY: The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to comment on a revision to this information collection, as required by the Paperwork Reduction Act of 1995. An agency may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. Currently, the OCC is soliciting comment concerning a revision to a regulatory reporting requirement for national banks and Federal savings associations titled, ‘‘Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions with Total Consolidated Assets of $50 Billion or More under the Dodd-Frank Wall Street Reform and Consumer Protection Act.’’ DATES: Comments must be received by November 10, 2014. ADDRESSES: Communications Division, Office of the Comptroller of the Currency, Mailstop 2–3, Attention: 1557–0319, 400 7th St. SW., Washington, DC 20219. In addition, comments may be sent by fax to (571) 465–4326 or by electronic mail to regs.comments@occ.treas.gov. You may personally inspect and photocopy comments at the OCC, 400 7th St. SW., Washington, DC 20219. For security SUMMARY: PO 00000 Frm 00152 Fmt 4703 Sfmt 4703 53835 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. FOR FURTHER INFORMATION CONTACT: You can request additional information from Johnny Vilela or Mary H. Gottlieb, OCC Clearance Officers, (202) 649–5490, for persons who are deaf or hard of hearing, TTY, (202) 649–5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th St. SW., Washington, DC 20219. In addition, copies of the templates referenced in this notice can be found on the OCC’s Web site under News and Issuances (https://www.occ.treas.gov/ tools-forms/forms/bank-operations/ stress-test-reporting.html). SUPPLEMENTARY INFORMATION: The OCC is requesting comment on the following revision to an approved information collection: Title: Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions with Total Consolidated Assets of $50 Billion or More under the Dodd-Frank Wall Street Reform and Consumer Protection Act. OMB Control No.: 1557–0319. Description: Section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act 1 (Dodd-Frank Act) requires certain financial companies, including national banks and Federal savings associations, to conduct annual stress tests 2 and requires the primary financial regulatory agency 3 of those financial companies to issue regulations implementing the stress test requirements.4 A national bank or Federal savings association is a ‘‘covered institution’’ and therefore subject to the stress test requirements if its total consolidated assets are more than $10 billion. Under section 165(i)(2), a covered institution is required to submit to the Board of Governors of the Federal Reserve System (Board) and to its primary financial regulatory agency a report at such time, in such form, and containing such information as the primary financial regulatory agency may require.5 On October 9, 2012, the OCC published in the Federal Register a final rule implementing the section 165(i)(2) 1 Public Law 111–203, 124 Stat. 1376, July 2010. U.S.C. 5365(i)(2)(A). 3 12 U.S.C. 5301(12). 4 12 U.S.C. 5365(i)(2)(C). 5 12 U.S.C. 5365(i)(2)(B). 2 12 E:\FR\FM\10SEN1.SGM 10SEN1 tkelley on DSK3SPTVN1PROD with NOTICES 53836 Federal Register / Vol. 79, No. 175 / Wednesday, September 10, 2014 / Notices annual stress test requirement.6 This rule describes the reports and information collections required to meet the reporting requirements under section 165(i)(2). These information collections will be given confidential treatment (5 U.S.C. 552(b)(4)). In 2012, the OCC first implemented the reporting templates referenced in the final rule. See 77 FR 49485 (August 16, 2012) and 77 FR 66663 (November 6, 2012). The OCC is now revising them as described below. The OCC intends to use the data collected to assess the reasonableness of the stress test results of covered institutions and to provide forwardlooking information to the OCC regarding a covered institution’s capital adequacy. The OCC also may use the results of the stress tests to determine whether additional analytical techniques and exercises could be appropriate to identify, measure, and monitor risks at the covered institution. The stress test results are expected to support ongoing improvement in a covered institution’s stress testing practices with respect to its internal assessments of capital adequacy and overall capital planning. The OCC recognizes that many covered institutions with total consolidated assets of $50 billion or more are required to submit reports using the Comprehensive Capital Analysis and Review (CCAR) reporting form FR Y–14A.7 The OCC also recognizes the Board has a proposal to modify the FR Y–14A out for comment and, to the extent practical, the OCC will keep its reporting requirements consistent with the Board’s FR Y–14A in order to minimize burden on covered institutions.8 Therefore, the OCC is proposing to revise its reporting requirements to remain consistent with the Board’s proposed FR Y–14A for covered institutions with total consolidated assets of $50 billion or more. Furthermore, the OCC is proposing to revise the Scenario Schedule, which collects information on scenario variables beyond those provided by regulators. The purpose of this revision is to require further clarity on the definitions of the additional scenario variables as well as information on how the additional scenario variables are used by covered institutions. 6 77 FR 61238 (October 9, 2012). 7 https://www.federalreserve.gov/reportforms. 8 79 FR 41276 (July 15, 2014). VerDate Mar<15>2010 19:04 Sep 09, 2014 Jkt 232001 Proposed Revisions to Reporting Templates for Institutions With $50 Billion or More in Assets The proposed revisions to the DFAST–14A reporting templates consist of adding data items, deleting data items, redefining existing data items, and renumbering data items. These proposed changes would provide additional information to enhance the ability of the OCC to analyze the validity and integrity of firms’ projections and increase consistency between the FR Y–14A reporting templates and DFAST–14A reporting templates. The OCC has conducted a thorough review of proposed changes and believes that the incremental burden of these changes is justified given the need for these data to properly conduct the OCC’s supervisory responsibilities related to the stress testing. Summary Schedule The OCC proposes making a number of changes to the Summary Schedule to better assess covered institutions’ calculation of risk-weighted assets (RWA) and certain other items detailed below. Please note that all line item numbers referenced in this Notice refer to the existing reporting schedules, not the proposed reporting schedules. Because the proposed changes add and delete some data items, line-item numbering between the existing and proposed templates may be different (e.g., Income Statement item 125, Total Other Losses, in the existing reporting template is now item 124 in the proposed template). Revisions to Income Statement Worksheet In order to accurately collect information for the Income Statement, the OCC proposes changing items 127 and 128 (Realized Gains/Losses on available-for-sale securities and held-tomaturity securities, including OTTI) to be reported items instead of being equal to the total amounts on the Securities OTTI by Portfolio worksheet. Additionally, for consistency with changes proposed to the Counterparty Risk Worksheet described below, items 59 and 62 (Trading Incremental Default Losses and Other CCR Losses) would be modified to be Trading Issuer Default Losses and CCR Losses, and line item 61 (Counterparty Incremental Default Losses) would be removed. Revisions to RWA and Capital Worksheets To better align the collection of regulatory capital components with the Board’s FR Y–14A, the OCC proposes to PO 00000 Frm 00153 Fmt 4703 Sfmt 4703 modify the definitions of the items on the Capital—DFAST worksheet to refer to or mirror the definitions that appear on proposed revisions to the FR Y–14A. Respondents would be required to apply the appropriate transition provisions to all transition-affected items of the Capital—DFAST schedule consistent with revisions to regulatory capital rules. With regard to the RWA worksheets, the standardized approach RWA and market RWA items of the General RWA worksheet have been changed in accordance with proposed modifications to Schedule RC–R of the Call Report 9 and modifications to the FR Y–14A that are currently being considered, and moved to a separate worksheet (Standardized RWA). These changes include both the modification and addition of items, for an overall addition of 12 items. Additionally, the computed items one through five of the current Advanced RWA worksheet would be removed. Revisions to Retail Repurchase Worksheet Due to recent activity by respondents involving settlements related to their representation and warranty (R&W) liabilities related to residential mortgages, the OCC proposes to collect additional detail about the R&W liabilities. Specifically, line items would be added that collect the unpaid principal balance (UPB) of loans covered by completed settlements for which liability remains and for which no liability remains by vintage beginning with 2004, as well as total settlement across vintages, for the following categories of loans: Loans sold to Fannie Mae, loans sold to Freddie Mac, loans insured by the U.S. government, loans securitized with monoline insurance, loans secured without monoline insurance, and whole loans sold. Revisions to Securities Worksheets Because covered bonds have unique characteristics relative to other asset categories currently on this worksheet, the OCC would add a covered bond category to the Securities worksheets to appropriately and separately evaluate respondents’ projections of these assets. Additionally, two columns would be added to collect information for the Securities AFS OCI by Portfolio worksheet that would allow changes in market value to be distinguished from changes in portfolio allocation for each projected quarter: Beginning Fair Market Value and Fair Value Rate of Change, which is the weighted average percent 9 70 E:\FR\FM\10SEN1.SGM FR 35634 (June 23, 2014). 10SEN1 Federal Register / Vol. 79, No. 175 / Wednesday, September 10, 2014 / Notices change in fair value over the quarter. Finally, to reduce reporting burden and increase efficiency in reporting, the nine sub-asset categories of Domestic NonAgency Residential Mortgage-Backed Securities (RMBS) would be removed from the same worksheet, and the available-for-sale and held-to-maturity portions of the Securities OTTI by Portfolio worksheet would be combined with the addition of a column to identify AFS amounts versus HTM amounts. Revisions to Trading Worksheet Because credit valuation adjustment (CVA) losses are modeled separately from trading portfolio losses, the OCC proposes that the profit (loss) amount related to CVA hedges be reported separately from other trading activity. Revisions to Counterparty Risk Worksheet To allow respondents to use alternative methodologies for estimating losses related to the default of issuers and counterparties, the requirement of using the incremental default risk (IDR) methodology would be removed. Accordingly, line items 1, 1a and 1b (Trading Incremental Default Losses, Trading Incremental Default Losses from securitized products, and Trading Incremental Default Losses from other credit sensitive instruments) would be modified to be Issuer Default Losses. Additionally, line items 3 (Counterparty Incremental Default Losses) and 3a (Impact of CCR IDR Hedges) would be removed, line item 4 (Other CCR Losses) would be modified to be CCR Losses, and the line item Effect of CCR Hedges would be added. tkelley on DSK3SPTVN1PROD with NOTICES Regulatory Capital Instruments Schedule Proposed changes to the Regulatory Capital Instruments schedule would be consistent with proposed changes to the FR Y–14A. Specifically, the OCC proposes (1) adding an item that collects employee stock compensation to the four quarterly redemption/repurchase and issuance activity sub-sections; (2) adding 18 items to the general riskbased capital rules section and 28 items to the revised regulatory capital section; and (3) changing the capital balance items in the general risk-based capital rules section and the revised regulatory capital section from reported items to formulas to permit the capital balance items to be automatically computed using the proposed items. VerDate Mar<15>2010 19:04 Sep 09, 2014 Jkt 232001 Regulatory Capital Transitions Schedule Similar to the changes proposed to be made to the RWA and Capital worksheets of the Summary schedule, proposed changes to the Regulatory Capital Transitions schedule would be made to better align the collection of regulatory capital components with proposed revisions to the FR Y–14A and proposed revisions to Schedule RC–R of the Call Report. The OCC proposes (1) aligning the definitions of the items on the Capital Composition worksheet to be consistent with the FR Y–14A; (2) modifying the RWA General worksheet to align with proposed revisions to the FR Y–14A, including changing the name to Standardized RWA and modifying, removing and adding items for a net increase of 15 items; (3) modifying, adding and removing items on the Advanced RWA worksheet to align with the Advanced RWA worksheet on the Summary schedule, for a net increase of 21 items; and (4) revising the Leverage Exposure worksheet in accordance with proposed changes to the supplementary leverage requirement, for a net increase of ten items. Counterparty Credit Risk Schedule Significant additions would be made to the CCR schedule to more adequately and accurately capture exposure information related to derivatives and securities financing transactions (SFTs) used in supervisory loss estimates and supervisory activities. These additions would remediate deficiencies discovered in the current collection related to exposure, including a lack of information regarding collateral, asset types, and total exposure to a given counterparty. The OCC proposes (1) adding a worksheet that collects the derivative exposures at a legal-entity nettingagreement level for the top 25 noncentral clearing counterparty (non-CCP) and non-G–7 counterparties, as well as all CCPs and the G–7 counterparties that includes a breakout of collateral into cash and non-cash, and exposures into 14 asset categories; (2) changing the current SFT sub-schedule to collect exposures and collateral separately at a counterparty legal-entity nettingagreement level for the top 25 non-CCP and non-G–7 counterparties as well as all CCPs and the G–7 counterparties and adding asset sub-categories for a total of 30 specific asset types; (3) removing all columns with the bank specification of margin period of risk (MPOR) under the global market shocks from worksheets 1(a)–1(e); (4) removing the column LGD Derived from Unstressed PD on the EE PO 00000 Frm 00154 Fmt 4703 Sfmt 4703 53837 profile by CP worksheet; and (5) adding columns to worksheet 1(e) to collect both gross and net stressed and unstressed current exposure to CCPs. Scenario Schedule Additional scenario variables, which are collected on this schedule, are key drivers in projection methodologies. The OCC is proposing to revise the Scenario Schedule to further clarify the definitions of the additional scenario variables as well as to gather further information on how the additional scenario variables are used by covered institutions. It is expected that this additional clarity and information will assist in comparing information in this schedule across covered institutions. The OCC proposes (1) providing additional guidance on the syntax for naming additional scenario variables to increase the comparability of additional scenario variables across covered institutions; (2) adding a column to explicitly capture the ‘‘unit of measure’’ of the additional scenario variables, e.g., basis points, percentages, dollars; (3) adding a column to explicitly capture the frequency of the variable, e.g., monthly or 3-month average; and (4) adding multiple columns to understand where the additional scenario variables are used in modeling. These last additional columns align with the methodology documentation framework described in Appendix A of the instructions. Technical Changes The proposed revised templates also contain various technical and reference changes. Type of Review: Revision. Affected Public: Businesses or other for-profit. Estimated Number of Respondents: 23. Estimated Total Annual Burden: 16,466 hours. The OCC recognizes that the Board has estimated 67,848 hours for bank holding companies to prepare the reporting schedules submitted for the FR Y–14A. The OCC believes that the systems the covered institutions use to prepare the FR Y–14A reporting schedules will also be used to prepare the reporting schedules described in this notice. Comments submitted in response to this notice will be summarized and included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the E:\FR\FM\10SEN1.SGM 10SEN1 53838 Federal Register / Vol. 79, No. 175 / Wednesday, September 10, 2014 / Notices OCC, including whether the information has practical utility; (b) The accuracy of the OCC’s estimate of the burden of the collection of information; (c) Ways to enhance the quality, utility, and clarity of the information to be collected; (d) Ways to minimize the burden of the collection on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Dated: September 4, 2014. Stuart Feldstein, Director, Legislative and Regulatory Activities Division. [FR Doc. 2014–21493 Filed 9–9–14; 8:45 am] BILLING CODE 4810–33–P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency [Docket ID OCC–2014–0021] FEDERAL RESERVE SYSTEM [Docket No. OP–1497] FEDERAL DEPOSIT INSURANCE CORPORATION Community Reinvestment Act; Interagency Questions and Answers Regarding Community Reinvestment; Notice Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (Board); Federal Deposit Insurance Corporation (FDIC). ACTION: Notice and request for comment. AGENCY: The OCC, Board, and FDIC (the Agencies) propose to clarify and supplement their Interagency Questions and Answers Regarding Community Reinvestment to address questions raised by bankers, community organizations, and others regarding the Agencies’ Community Reinvestment Act (CRA) regulations. The Agencies propose to revise three questions and answers that address (i) alternative systems for delivering retail banking services and (ii) additional examples of innovative or flexible lending practices. In addition, the Agencies propose to revise three questions and answers addressing community developmentrelated issues, including economic development, community development tkelley on DSK3SPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 19:04 Sep 09, 2014 Jkt 232001 loans, and activities that are considered to revitalize or stabilize an underserved nonmetropolitan middle-income geography. The Agencies also propose to add four new questions and answers, two of which address community development services, and two of which provide general guidance on responsiveness and innovativeness. DATES: Comments on the proposed questions and answers must be received on or before November 10, 2014. ADDRESSES: Comments should be directed to: OCC: Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments by email, if possible. Please use the title ‘‘Community Reinvestment Act: Interagency Questions and Answers Regarding Community Reinvestment’’ to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods: • Email: regs.comments@ occ.treas.gov. • Mail: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, Mail Stop 9W–11, 400 7th Street SW., Washington, DC 20219. • Fax: (571) 465–4326. • Hand Delivery/Courier: 400 7th Street SW., Washington, DC 20219. Instructions: You must include ‘‘OCC’’ as the agency name and ‘‘Docket ID OCC–2014–0021’’ in your comment. In general, the OCC will enter all comments received into the docket and publish them 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 notice by any of the following methods: • 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 PO 00000 Frm 00155 Fmt 4703 Sfmt 4703 order to inspect and photocopy comments. • Docket: You may also view or request available background documents and project summaries using the methods described above. Board: You may submit comments, identified by Docket No. OP–1497 by any of the following methods: • Agency Web site: https:// www.federalreserve.gov. Follow the instructions for submitting comments at https://www.federalreserve.gov/ generalinfo/foia/ProposedRegs.cfm. • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Email: regs.comments@ federalreserve.gov. Include the docket number in the subject line of the message. • Fax: (202) 452–3819 or (202) 452– 3102. • Mail: Address to Robert deV. Frierson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW., Washington, DC 20551. All public comments will be made available on the Board’s Web site at https:// www.federalreserve.gov/generalinfo/ foia/ProposedRegs.cfm as submitted, unless modified for technical reasons. Accordingly, comments will not be edited to remove any identifying or contact information. Public comments may also be viewed electronically or in paper in Room MP–500 of the Board’s Martin Building (20th and C Streets NW., Washington, DC) between 9:00 a.m. and 5:00 p.m. on weekdays. FDIC: • Mail: Written comments should be addressed to Robert E. Feldman, Executive Secretary, Attention: Comments, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429. • Delivery: Comments may be hand delivered to 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. • Agency Web site: https:// www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the agency Web site. • Email: You may also electronically mail comments to comments@fdic.gov. FOR FURTHER INFORMATION CONTACT: OCC: Bobbie K. Kennedy, Bank Examiner, Compliance Policy Division, (202) 649–5470; or Margaret Hesse, Senior Counsel, Community and Consumer Law Division, (202) 649– 6350, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219. E:\FR\FM\10SEN1.SGM 10SEN1

Agencies

[Federal Register Volume 79, Number 175 (Wednesday, September 10, 2014)]
[Notices]
[Pages 53835-53838]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-21493]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Revision of an Approved 
Information Collection; Comment Request; Company-Run Annual Stress Test 
Reporting Template and Documentation for Covered Institutions With 
Total Consolidated Assets of $50 Billion or More Under the Dodd-Frank 
Wall Street Reform and Consumer Protection Act

AGENCY: Office of the Comptroller of the Currency, Treasury (OCC).

ACTION: Notice and request for comment.

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

SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other Federal 
agencies to comment on a revision to this information collection, as 
required by the Paperwork Reduction Act of 1995. An agency may not 
conduct or sponsor, and a respondent is not required to respond to, an 
information collection unless it displays a currently valid Office of 
Management and Budget (OMB) control number. Currently, the OCC is 
soliciting comment concerning a revision to a regulatory reporting 
requirement for national banks and Federal savings associations titled, 
``Company-Run Annual Stress Test Reporting Template and Documentation 
for Covered Institutions with Total Consolidated Assets of $50 Billion 
or More under the Dodd-Frank Wall Street Reform and Consumer Protection 
Act.''

DATES: Comments must be received by November 10, 2014.

ADDRESSES: Communications Division, Office of the Comptroller of the 
Currency, Mailstop 2-3, Attention: 1557-0319, 400 7th St. SW., 
Washington, DC 20219. In addition, comments may be sent by fax to (571) 
465-4326 or by electronic mail to regs.comments@occ.treas.gov. You may 
personally inspect and photocopy comments at the OCC, 400 7th St. SW., 
Washington, DC 20219. For security reasons, the OCC requires that 
visitors make an appointment to inspect comments. You may do so by 
calling (202) 649-6700. Upon arrival, visitors will be required to 
present valid government-issued photo identification and to submit to 
security screening in order to inspect and photocopy comments.

FOR FURTHER INFORMATION CONTACT: You can request additional information 
from Johnny Vilela or Mary H. Gottlieb, OCC Clearance Officers, (202) 
649-5490, for persons who are deaf or hard of hearing, TTY, (202) 649-
5597, Legislative and Regulatory Activities Division, Office of the 
Comptroller of the Currency, 400 7th St. SW., Washington, DC 20219. In 
addition, copies of the templates referenced in this notice can be 
found on the OCC's Web site under News and Issuances (https://www.occ.treas.gov/tools-forms/forms/bank-operations/stress-test-reporting.html).

SUPPLEMENTARY INFORMATION: The OCC is requesting comment on the 
following revision to an approved information collection:
    Title: Company-Run Annual Stress Test Reporting Template and 
Documentation for Covered Institutions with Total Consolidated Assets 
of $50 Billion or More under the Dodd-Frank Wall Street Reform and 
Consumer Protection Act.
    OMB Control No.: 1557-0319.
    Description: Section 165(i)(2) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act \1\ (Dodd-Frank Act) requires certain 
financial companies, including national banks and Federal savings 
associations, to conduct annual stress tests \2\ and requires the 
primary financial regulatory agency \3\ of those financial companies to 
issue regulations implementing the stress test requirements.\4\ A 
national bank or Federal savings association is a ``covered 
institution'' and therefore subject to the stress test requirements if 
its total consolidated assets are more than $10 billion. Under section 
165(i)(2), a covered institution is required to submit to the Board of 
Governors of the Federal Reserve System (Board) and to its primary 
financial regulatory agency a report at such time, in such form, and 
containing such information as the primary financial regulatory agency 
may require.\5\ On October 9, 2012, the OCC published in the Federal 
Register a final rule implementing the section 165(i)(2)

[[Page 53836]]

annual stress test requirement.\6\ This rule describes the reports and 
information collections required to meet the reporting requirements 
under section 165(i)(2). These information collections will be given 
confidential treatment (5 U.S.C. 552(b)(4)).
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    \1\ Public Law 111-203, 124 Stat. 1376, July 2010.
    \2\ 12 U.S.C. 5365(i)(2)(A).
    \3\ 12 U.S.C. 5301(12).
    \4\ 12 U.S.C. 5365(i)(2)(C).
    \5\ 12 U.S.C. 5365(i)(2)(B).
    \6\ 77 FR 61238 (October 9, 2012).
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    In 2012, the OCC first implemented the reporting templates 
referenced in the final rule. See 77 FR 49485 (August 16, 2012) and 77 
FR 66663 (November 6, 2012). The OCC is now revising them as described 
below.
    The OCC intends to use the data collected to assess the 
reasonableness of the stress test results of covered institutions and 
to provide forward-looking information to the OCC regarding a covered 
institution's capital adequacy. The OCC also may use the results of the 
stress tests to determine whether additional analytical techniques and 
exercises could be appropriate to identify, measure, and monitor risks 
at the covered institution. The stress test results are expected to 
support ongoing improvement in a covered institution's stress testing 
practices with respect to its internal assessments of capital adequacy 
and overall capital planning.
    The OCC recognizes that many covered institutions with total 
consolidated assets of $50 billion or more are required to submit 
reports using the Comprehensive Capital Analysis and Review (CCAR) 
reporting form FR Y-14A.\7\ The OCC also recognizes the Board has a 
proposal to modify the FR Y-14A out for comment and, to the extent 
practical, the OCC will keep its reporting requirements consistent with 
the Board's FR Y-14A in order to minimize burden on covered 
institutions.\8\ Therefore, the OCC is proposing to revise its 
reporting requirements to remain consistent with the Board's proposed 
FR Y-14A for covered institutions with total consolidated assets of $50 
billion or more. Furthermore, the OCC is proposing to revise the 
Scenario Schedule, which collects information on scenario variables 
beyond those provided by regulators. The purpose of this revision is to 
require further clarity on the definitions of the additional scenario 
variables as well as information on how the additional scenario 
variables are used by covered institutions.
---------------------------------------------------------------------------

    \7\ https://www.federalreserve.gov/reportforms.
    \8\ 79 FR 41276 (July 15, 2014).
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Proposed Revisions to Reporting Templates for Institutions With $50 
Billion or More in Assets

    The proposed revisions to the DFAST-14A reporting templates consist 
of adding data items, deleting data items, redefining existing data 
items, and renumbering data items. These proposed changes would provide 
additional information to enhance the ability of the OCC to analyze the 
validity and integrity of firms' projections and increase consistency 
between the FR Y-14A reporting templates and DFAST-14A reporting 
templates. The OCC has conducted a thorough review of proposed changes 
and believes that the incremental burden of these changes is justified 
given the need for these data to properly conduct the OCC's supervisory 
responsibilities related to the stress testing.

Summary Schedule

    The OCC proposes making a number of changes to the Summary Schedule 
to better assess covered institutions' calculation of risk-weighted 
assets (RWA) and certain other items detailed below. Please note that 
all line item numbers referenced in this Notice refer to the existing 
reporting schedules, not the proposed reporting schedules. Because the 
proposed changes add and delete some data items, line-item numbering 
between the existing and proposed templates may be different (e.g., 
Income Statement item 125, Total Other Losses, in the existing 
reporting template is now item 124 in the proposed template).

Revisions to Income Statement Worksheet

    In order to accurately collect information for the Income 
Statement, the OCC proposes changing items 127 and 128 (Realized Gains/
Losses on available-for-sale securities and held-to-maturity 
securities, including OTTI) to be reported items instead of being equal 
to the total amounts on the Securities OTTI by Portfolio worksheet. 
Additionally, for consistency with changes proposed to the Counterparty 
Risk Worksheet described below, items 59 and 62 (Trading Incremental 
Default Losses and Other CCR Losses) would be modified to be Trading 
Issuer Default Losses and CCR Losses, and line item 61 (Counterparty 
Incremental Default Losses) would be removed.

Revisions to RWA and Capital Worksheets

    To better align the collection of regulatory capital components 
with the Board's FR Y-14A, the OCC proposes to modify the definitions 
of the items on the Capital--DFAST worksheet to refer to or mirror the 
definitions that appear on proposed revisions to the FR Y-14A. 
Respondents would be required to apply the appropriate transition 
provisions to all transition-affected items of the Capital--DFAST 
schedule consistent with revisions to regulatory capital rules. With 
regard to the RWA worksheets, the standardized approach RWA and market 
RWA items of the General RWA worksheet have been changed in accordance 
with proposed modifications to Schedule RC-R of the Call Report \9\ and 
modifications to the FR Y-14A that are currently being considered, and 
moved to a separate worksheet (Standardized RWA). These changes include 
both the modification and addition of items, for an overall addition of 
12 items. Additionally, the computed items one through five of the 
current Advanced RWA worksheet would be removed.
---------------------------------------------------------------------------

    \9\ 70 FR 35634 (June 23, 2014).
---------------------------------------------------------------------------

Revisions to Retail Repurchase Worksheet

    Due to recent activity by respondents involving settlements related 
to their representation and warranty (R&W) liabilities related to 
residential mortgages, the OCC proposes to collect additional detail 
about the R&W liabilities. Specifically, line items would be added that 
collect the unpaid principal balance (UPB) of loans covered by 
completed settlements for which liability remains and for which no 
liability remains by vintage beginning with 2004, as well as total 
settlement across vintages, for the following categories of loans: 
Loans sold to Fannie Mae, loans sold to Freddie Mac, loans insured by 
the U.S. government, loans securitized with monoline insurance, loans 
secured without monoline insurance, and whole loans sold.

Revisions to Securities Worksheets

    Because covered bonds have unique characteristics relative to other 
asset categories currently on this worksheet, the OCC would add a 
covered bond category to the Securities worksheets to appropriately and 
separately evaluate respondents' projections of these assets. 
Additionally, two columns would be added to collect information for the 
Securities AFS OCI by Portfolio worksheet that would allow changes in 
market value to be distinguished from changes in portfolio allocation 
for each projected quarter: Beginning Fair Market Value and Fair Value 
Rate of Change, which is the weighted average percent

[[Page 53837]]

change in fair value over the quarter. Finally, to reduce reporting 
burden and increase efficiency in reporting, the nine sub-asset 
categories of Domestic Non-Agency Residential Mortgage-Backed 
Securities (RMBS) would be removed from the same worksheet, and the 
available-for-sale and held-to-maturity portions of the Securities OTTI 
by Portfolio worksheet would be combined with the addition of a column 
to identify AFS amounts versus HTM amounts.

Revisions to Trading Worksheet

    Because credit valuation adjustment (CVA) losses are modeled 
separately from trading portfolio losses, the OCC proposes that the 
profit (loss) amount related to CVA hedges be reported separately from 
other trading activity.

Revisions to Counterparty Risk Worksheet

    To allow respondents to use alternative methodologies for 
estimating losses related to the default of issuers and counterparties, 
the requirement of using the incremental default risk (IDR) methodology 
would be removed. Accordingly, line items 1, 1a and 1b (Trading 
Incremental Default Losses, Trading Incremental Default Losses from 
securitized products, and Trading Incremental Default Losses from other 
credit sensitive instruments) would be modified to be Issuer Default 
Losses. Additionally, line items 3 (Counterparty Incremental Default 
Losses) and 3a (Impact of CCR IDR Hedges) would be removed, line item 4 
(Other CCR Losses) would be modified to be CCR Losses, and the line 
item Effect of CCR Hedges would be added.

Regulatory Capital Instruments Schedule

    Proposed changes to the Regulatory Capital Instruments schedule 
would be consistent with proposed changes to the FR Y-14A. 
Specifically, the OCC proposes (1) adding an item that collects 
employee stock compensation to the four quarterly redemption/repurchase 
and issuance activity sub-sections; (2) adding 18 items to the general 
risk-based capital rules section and 28 items to the revised regulatory 
capital section; and (3) changing the capital balance items in the 
general risk-based capital rules section and the revised regulatory 
capital section from reported items to formulas to permit the capital 
balance items to be automatically computed using the proposed items.

Regulatory Capital Transitions Schedule

    Similar to the changes proposed to be made to the RWA and Capital 
worksheets of the Summary schedule, proposed changes to the Regulatory 
Capital Transitions schedule would be made to better align the 
collection of regulatory capital components with proposed revisions to 
the FR Y-14A and proposed revisions to Schedule RC-R of the Call 
Report. The OCC proposes (1) aligning the definitions of the items on 
the Capital Composition worksheet to be consistent with the FR Y-14A; 
(2) modifying the RWA General worksheet to align with proposed 
revisions to the FR Y-14A, including changing the name to Standardized 
RWA and modifying, removing and adding items for a net increase of 15 
items; (3) modifying, adding and removing items on the Advanced RWA 
worksheet to align with the Advanced RWA worksheet on the Summary 
schedule, for a net increase of 21 items; and (4) revising the Leverage 
Exposure worksheet in accordance with proposed changes to the 
supplementary leverage requirement, for a net increase of ten items.

Counterparty Credit Risk Schedule

    Significant additions would be made to the CCR schedule to more 
adequately and accurately capture exposure information related to 
derivatives and securities financing transactions (SFTs) used in 
supervisory loss estimates and supervisory activities. These additions 
would remediate deficiencies discovered in the current collection 
related to exposure, including a lack of information regarding 
collateral, asset types, and total exposure to a given counterparty.
    The OCC proposes (1) adding a worksheet that collects the 
derivative exposures at a legal-entity netting-agreement level for the 
top 25 non-central clearing counterparty (non-CCP) and non-G-7 
counterparties, as well as all CCPs and the G-7 counterparties that 
includes a breakout of collateral into cash and non-cash, and exposures 
into 14 asset categories; (2) changing the current SFT sub-schedule to 
collect exposures and collateral separately at a counterparty legal-
entity netting-agreement level for the top 25 non-CCP and non-G-7 
counterparties as well as all CCPs and the G-7 counterparties and 
adding asset sub-categories for a total of 30 specific asset types; (3) 
removing all columns with the bank specification of margin period of 
risk (MPOR) under the global market shocks from worksheets 1(a)-1(e); 
(4) removing the column LGD Derived from Unstressed PD on the EE 
profile by CP worksheet; and (5) adding columns to worksheet 1(e) to 
collect both gross and net stressed and unstressed current exposure to 
CCPs.

Scenario Schedule

    Additional scenario variables, which are collected on this 
schedule, are key drivers in projection methodologies. The OCC is 
proposing to revise the Scenario Schedule to further clarify the 
definitions of the additional scenario variables as well as to gather 
further information on how the additional scenario variables are used 
by covered institutions. It is expected that this additional clarity 
and information will assist in comparing information in this schedule 
across covered institutions.
    The OCC proposes (1) providing additional guidance on the syntax 
for naming additional scenario variables to increase the comparability 
of additional scenario variables across covered institutions; (2) 
adding a column to explicitly capture the ``unit of measure'' of the 
additional scenario variables, e.g., basis points, percentages, 
dollars; (3) adding a column to explicitly capture the frequency of the 
variable, e.g., monthly or 3-month average; and (4) adding multiple 
columns to understand where the additional scenario variables are used 
in modeling. These last additional columns align with the methodology 
documentation framework described in Appendix A of the instructions.

Technical Changes

    The proposed revised templates also contain various technical and 
reference changes.
    Type of Review: Revision.
    Affected Public: Businesses or other for-profit.
    Estimated Number of Respondents: 23.
    Estimated Total Annual Burden: 16,466 hours.
    The OCC recognizes that the Board has estimated 67,848 hours for 
bank holding companies to prepare the reporting schedules submitted for 
the FR Y-14A. The OCC believes that the systems the covered 
institutions use to prepare the FR Y-14A reporting schedules will also 
be used to prepare the reporting schedules described in this notice. 
Comments submitted in response to this notice will be summarized and 
included in the request for OMB approval. All comments will become a 
matter of public record. Comments are invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the

[[Page 53838]]

OCC, including whether the information has practical utility;
    (b) The accuracy of the OCC's estimate of the burden of the 
collection of information;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: September 4, 2014.
Stuart Feldstein,
Director, Legislative and Regulatory Activities Division.
[FR Doc. 2014-21493 Filed 9-9-14; 8:45 am]
BILLING CODE 4810-33-P
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