Annual Stress Test-Schedule Shift and Adjustments to Regulatory Capital Projections, 71630-71634 [2014-28420]

Download as PDF 71630 Federal Register / Vol. 79, No. 232 / Wednesday, December 3, 2014 / Rules and Regulations Reporting and recordkeeping requirements. PART 431—ENERGY EFFICIENCY PROGRAM FOR CERTAIN COMMERCIAL AND INDUSTRIAL EQUIPMENT 3. The authority citation for part 431 continues to read as follows: 10 CFR Part 431 Administrative practice and procedure, Confidential business information, Energy conservation, Household appliances. For the reasons stated in the preamble, DOE amends parts 429 and 431 of Chapter II of Title 10, Code of Federal Regulations as set forth below: PART 429—CERTIFICATION, COMPLIANCE, AND ENFORCEMENT FOR CONSUMER PRODUCTS AND COMMERCIAL AND INDUSTRIAL EQUIPMENT 1. The authority citation for part 429 continues to read as follows: ■ Authority: 42 U.S.C. 6291–6317. 2. Section 429.46 is amended by revising paragraphs (a)(2)(i) introductory text, (a)(2)(ii) introductory text, and (b)(2) to read as follows: ■ tkelley on DSK3SPTVN1PROD with RULES Commercial clothes washers. (a) * * * (2) * * * (i) Any represented value of the water factor or other measure of energy or water consumption of a basic model for which consumers would favor lower values shall be greater than or equal to the higher of: * * * * * (ii) Any represented value of the modified energy factor or other measure of energy or water consumption of a basic model for which consumers would favor higher values shall be greater than or equal to the higher of: * * * * * (b) * * * (2) Pursuant to § 429.12(b)(13), a certification report shall include the following public product-specific information: (i) If testing was conducted using Appendix J1 to subpart B of part 430 of this chapter: The modified energy factor (MEF) in cubic feet per kilowatt hour per cycle (cu ft/kWh/cycle); and the water factor (WF) in gallons per cubic feet per cycle (gal/cu ft/cycle); (ii) If testing was conducted using Appendix J2 to subpart B of part 430 of this chapter: The modified energy factor (MEFJ2) in cu ft/kWh/cycle and the integrated water factor (IWF) in gal/cu ft/cycle. VerDate Sep<11>2014 16:13 Dec 02, 2014 Jkt 235001 12 CFR Part 46 ■ Issued in Washington, DC, on November 24, 2014. Kathleen B. Hogan, Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and Renewable Energy. § 429.46 DEPARTMENT OF THE TREASURY Authority: 42 U.S.C. 6311–6317 § 431.152 Definitions concerning commercial clothes washers. * * * * * IWF means integrated water factor, in gallons per cubic feet per cycle (gal/cu ft/cycle), as determined in section 4.2.13 of Appendix J2 to subpart B of 10 CFR part 430. MEF means modified energy factor, in cubic feet per kilowatt hour per cycle (cu ft/kWh/cycle), as determined in section 4.4 of Appendix J1 to subpart B of part 430. MEFJ2 means modified energy factor, in cu ft/kWh/cycle, as determined in section 4.5 of Appendix J2 to subpart B of part 430. WF means water factor, in gal/cu ft/ cycle, as determined in section 4.2.3 of Appendix J1 to subpart B of part 430. 5. Section 431.154 is revised to read as follows: ■ Test procedures. The test procedures for clothes washers in Appendix J1 to subpart B of part 430 of this chapter must be used to test commercial clothes washers to determine compliance with the energy conservation standards at § 431.156(b). The test procedures for clothes washers in Appendix J2 to subpart B of part 430 of this title must be used to determine compliance with any amended standards based on Appendix J2 efficiency metrics published after December 3, 2014. [FR Doc. 2014–28446 Filed 12–2–14; 8:45 am] BILLING CODE 6450–01–P PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 [Docket ID OCC–2014–0015] RIN 1557–AD85 4. Section 431.152 is amended by adding in alphabetical order the definitions for IWF, MEF, MEFJ2, and WF to read as follows: ■ § 431.154 Office of the Comptroller of the Currency Annual Stress Test—Schedule Shift and Adjustments to Regulatory Capital Projections Office of the Comptroller of the Currency, Treasury. ACTION: Final rule. AGENCY: On July 1, 2014, the Office of the Comptroller of the Currency (OCC) proposed to adjust the timing of the annual stress testing cycle and to clarify the method used to calculate regulatory capital in the stress tests (proposed rule). The OCC is now adopting the proposed rule as final (final rule). The final rule shifts the dates of the annual stress testing cycle by approximately three months. The final rule also provides that covered institutions will not have to calculate their risk-weighted assets using the internal ratings-based and advanced measurement approaches until the stress testing cycle beginning on January 1, 2016. DATES: The rule is effective January 2, 2015. FOR FURTHER INFORMATION CONTACT: Robert Scavotto, Deputy Director, International Analysis and Banking Condition, (202) 649–5477; 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: SUMMARY: I. Introduction and Background Section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘Dodd-Frank Act’’) requires the federal banking agencies to issue regulations requiring financial companies with more than $10 billion in assets to conduct annual stress tests (‘‘company-run stress tests’’). In October 2012, the OCC, the Board of Governors of the Federal Reserve System (‘‘Board’’), and the Federal Deposit Insurance Corporation issued rules implementing the company-run stress tests required by the Dodd-Frank Act. Under these rules, the OCC distributes E:\FR\FM\03DER1.SGM 03DER1 Federal Register / Vol. 79, No. 232 / Wednesday, December 3, 2014 / Rules and Regulations stress scenarios by November 15 1 to covered institutions. 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. II. Description of the Final Rule A. Shift in Stress Testing Cycle The proposed rule would have shifted the dates of the stress testing cycle by approximately three months.2 The proposed rule would have relieved 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 yearend obligations. Under the proposed rule, covered institutions with $50 billion or more in assets would have been required to submit the results of their company-run stress tests to the OCC by April 7 3 and would have been required to disclose stress test results between June 15 and July 15. However, within this disclosure period a covered institution that is a consolidated subsidiary of a bank holding company or savings and loan holding company subject to supervisory stress tests conducted by the Board pursuant to 12 CFR part 252 could 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 could 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). Under the proposed rule, covered institutions with between $10 and $50 billion in assets would have been required to submit the results of their company-run stress tests to the 71631 OCC by July 31 and publish those results between October 15 and October 31. The OCC received four comments on the proposed rule from banking organizations and trade associations. The commenters supported the proposed schedule shift and recommended that the OCC adopt the schedule shift earlier than proposed (adopting the schedule shift for the stress test cycle beginning October 1, 2014 instead of 2015, as proposed). Commenters argued that the current January 5 submission deadline has been challenging because of other year-end financial reporting obligations. The OCC recognizes these concerns and believes that covered institutions should conduct these tests at a time when they are better able to manage their resources. However, adopting the schedule shift one year earlier than proposed would disrupt planning for the stress testing schedule beginning October 1, 2014. Accordingly, under the final rule the schedule shift will take effect in the subsequent stress testing cycle, which will begin January 1, 2016. The following table summarizes the changes made by the final rule. TABLE 1—REVISED ANNUAL STRESS TEST TIMELINE FOR COVERED INSTITUTIONS WITH $50 BILLION OR MORE IN ASSETS Action required Current rule Final rule ‘‘As of’’ Date for Financial Data Used by Stress Test ............................ Distribution of Stress Scenarios in OCC ................................................. Submission of Stress Test Results ......................................................... Disclosure of Results Summary .............................................................. September 30 ................................ By November 15 ............................ By January 5 ................................. Between March 15 and March 31 December 31. By February 15. By April 5. Between June 15 and July 15 except no earlier than Board publication of the supervisory stress test results of the bank holding company. TABLE 2—REVISED ANNUAL STRESS TEST TIMELINE FOR COVERED INSTITUTIONS WITH BETWEEN $10 AND $50 BILLION IN ASSETS Current rule Proposed rule ‘‘As of’’ Date for Financial Data Used in Stress Test ............................. Distribution of Stress Scenarios by OCC ................................................ Submission of Stress Test Results ......................................................... Disclosure of Results Summary .............................................................. tkelley on DSK3SPTVN1PROD with RULES Action required September 30 ................................ By November 15 ............................ By March 31 .................................. Between June 15 and June 30 ..... December 31. By February 15. By July 31. Between October 15 and October 31. All covered institutions with between $10 and $50 billion in assets will be required to submit the results of their company-run stress tests to the OCC by July 31 and publish those results between October 15 and October 31. Covered institutions with $50 billion or more will be required to submit the results of their company-run stress tests to the OCC by April 5 and publish those results between June 15 and July 15. The April 5 reporting deadline for covered institutions with $50 billion or more in assets is a minor change from the April 7 deadline proposed in the proposed rule. The final rule also adopts the provisions in the proposed rule that prohibit a covered institution that is a consolidated subsidiary of a bank holding company or savings and loan holding company supervised by the 1 These scenarios provided by the OCC reflect a minimum of three sets of economic and financial conditions, including baseline, adverse, and severely adverse scenarios. 2 79 FR 37231 (July 1, 2014). 3 Under the final rule the reporting deadline has been changed to April 5. VerDate Sep<11>2014 16:13 Dec 02, 2014 Jkt 235001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\03DER1.SGM 03DER1 tkelley on DSK3SPTVN1PROD with RULES 71632 Federal Register / Vol. 79, No. 232 / Wednesday, December 3, 2014 / Rules and Regulations Board from disclosing its results until the Board has published the supervisory stress test results of the covered institution’s parent holding company. With respect to covered institutions with assets between $10 and $50 billion, 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 or more. In that case we note that the covered institution also would be subject to the disclosure requirements applicable to covered institutions with $50 billion or more in assets. One commenter requested that the OCC release the stress test scenarios earlier than February 15 to give covered institutions more time to prepare their stress test submissions. Under the final rule, the OCC will provide the scenarios ‘‘no later than’’ February 15. The OCC recognizes the need for covered institutions to have adequate time to complete their submissions and will attempt to distribute the scenarios as early as possible. Two commenters requested that the OCC reduce the stress test planning horizon from nine quarters to eight quarters. Under the current stress testing rule covered institutions are required to make stress test projections over a planning horizon lasting nine quarters. The OCC believes that the nine-quarter planning horizon results in an actual planning horizon of eight quarters, as the first quarter of the horizon is contemporaneous with the quarter in which the covered institution submits its stress test results. As such, in order to maintain a two-year stress test planning horizon, the final rule maintains the nine-quarter requirement. The OCC will consider the appropriate length of the planning horizon in light of future experience with stress testing. The proposed rule would also have amended 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 and 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 VerDate Sep<11>2014 16:13 Dec 02, 2014 Jkt 235001 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 have established 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. The OCC received no comments on this aspect of the proposed rule and is adopting the proposed changes as final. B. Clarification on the Use of Basel III Advanced Approaches On October 11, 2013, the OCC published revised risk-based and leverage capital rules that implement the Basel III framework.4 In light of the issuance of the revised capital rules, the proposed rule would have clarified when covered institutions would be required to estimate their minimum regulatory capital ratios over the stresstest 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.5 A national bank or Federal savings association that is an advanced approaches banking organization is required to use the advanced approaches to calculate its 4 78 5 12 PO 00000 FR 62018. CFR 46.6(a)(2). Frm 00010 Fmt 4700 Sfmt 4700 minimum regulatory capital ratios if it has conducted a satisfactory parallel run.6 The proposed rule would have provided that covered institutions are not required to calculate their riskweighted assets using the advanced approaches in their 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 proposed rule would have clarified 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. The OCC received no comments on this aspect of the proposed rule and is adopting it as final. III. 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. The final rule amends 12 CFR part 46, which has an approved information collection under the PRA (OMB Control No. 1557–0311). The amendments 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 final rule 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 final rule, an agency prepare a regulatory flexibility analysis that describes the impact of a proposed rule on small entities (defined by the Small Business Administration for purposes of the RFA to include 6 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). E:\FR\FM\03DER1.SGM 03DER1 Federal Register / Vol. 79, No. 232 / Wednesday, December 3, 2014 / Rules and Regulations banking entities with total assets of $550 million or less). 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 and publishes its certification and a brief explanatory statement in the Federal Register together with the rule. As discussed in the SUPPLEMENTARY INFORMATION above, the 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 final rule will not have a significant economic impact on a substantial number of small entities because no small national banks or Federal savings associations will be affected by the final rule. Accordingly, a regulatory flexibility analysis is not required. Unfunded Mandates Reform Act The OCC has analyzed the final 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 final 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 final 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 final rule 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 OCC to use plain language in all proposed and final rules published after January 1, 2000. The OCC has sought to present the final rule in a simple and straightforward manner. The OCC did not receive any comment on its use of plain language. tkelley on DSK3SPTVN1PROD with RULES 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 amends 12 CFR part 46 as follows: PART 46—ANNUAL STRESS TEST 1. The authority citation for part 46 is revised to read as follows: ■ VerDate Sep<11>2014 16:13 Dec 02, 2014 Jkt 235001 Authority: 12 U.S.C. 93a; 1463(a)(2); 5365(i)(2); and 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 under revised Annual Stress Test schedule. A national bank or Federal savings association that becomes a covered institution, as defined in § 46.2, 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. * * * * * ■ 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 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 71633 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 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 part 3, subpart E. * * * * * ■ 5. Section 46.7 is amended by revising paragraphs (a) and (b) to read as follows: § 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, E:\FR\FM\03DER1.SGM 03DER1 71634 Federal Register / Vol. 79, No. 232 / Wednesday, December 3, 2014 / Rules and Regulations 2014) and on or before April 5 (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. Section 46.8 is amended by revising paragraphs (a)(1) and (2) to read as follows: tkelley on DSK3SPTVN1PROD with RULES § 46.8 October 15 and ending October 31 (for the stress test cycle beginning January 1, 2016, and for all stress tests thereafter). * * * * * Dated: November 19, 2014. Thomas J. Curry, Comptroller of the Currency. [FR Doc. 2014–28420 Filed 12–2–14; 8:45 am] BILLING CODE 4810–33–P 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 VerDate Sep<11>2014 16:13 Dec 02, 2014 Jkt 235001 DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Parts 61 and 141 [Docket No.: FAA–2014–0987; Amdt. Nos. 61–133, 141–18]; RIN 2120–AK62 Aviation Training Device Credit for Pilot Certification Federal Aviation Administration (FAA), DOT. ACTION: Direct final rule. AGENCY: This rulemaking relieves burdens on pilots seeking to obtain aeronautical experience, training, and certification by increasing the allowed use of aviation training devices. These training devices have proven to be an effective, safe, and affordable means of obtaining pilot experience. These actions are necessary to bring the regulations in line with current needs and activities of the general aviation training community and pilots. DATES: Effective January 20, 2015. Send comments on or before January 2, 2015. If the FAA receives an adverse comment or notice of intent to file an adverse comment, the FAA will advise the public by publishing a document in the Federal Register before the effective date of the final rule, which may withdraw this direct final rule in whole or in part. ADDRESSES: Send comments identified by docket number FAA–2014–0987 using any of the following methods: • Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your comments electronically. • Mail: Send comments to Docket Operations, M–30; U.S. Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room W12–140, West Building Ground Floor, Washington, DC 20590–0001. • Hand Delivery or Courier: Take comments to Docket Operations in Room W12–140 of the West Building Ground Floor at 1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. SUMMARY: PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 • Fax: Fax comments to Docket Operations at 202–493–2251. Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to http://www.regulations.gov, as described in the system of records notice (DOT/ALL–14 FDMS), which can be reviewed at http://www.dot.gov/ privacy. Docket: Background documents or comments received may be read at http://www.regulations.gov at any time. Follow the online instructions for accessing the docket or go to the Docket Operations in Room W12–140 of the West Building Ground Floor at 1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: For technical questions concerning this action, contact Marcel Bernard, Airmen Certification and Training Branch, Flight Standards Service, AFS–810, Federal Aviation Administration, 55 M Street SE., 8th floor, Washington, DC 20003–3522; telephone (202) 385–9616; email marcel.bernard@faa.gov. For legal questions concerning this action, contact Anne Moore, International Law, Legislation, and Regulations Division, Office of the Chief Counsel, AGC–200, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591; telephone (202) 267–8018; email anne.moore@faa.gov. SUPPLEMENTARY INFORMATION: Authority for This Rulemaking The FAA’s authority to issue rules on aviation safety is found in Title 49 of the United States Code (49 U.S.C.). Subtitle I, Section 106 describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency’s authority. This rulemaking is promulgated under the authority described in 49 U.S.C. 106(f), which establishes the authority of the Administrator to promulgate regulations and rules; 49 U.S.C. 44701(a)(5), which requires the Administrator to promote safe flight of civil aircraft in air commerce by prescribing regulations and setting minimum standards for other practices, methods, and procedures necessary for safety in air commerce and national security; and 49 U.S.C. 44703(a), which requires the Administrator to prescribe regulations for the issuance of airman certificates when the Administrator E:\FR\FM\03DER1.SGM 03DER1

Agencies

[Federal Register Volume 79, Number 232 (Wednesday, December 3, 2014)]
[Rules and Regulations]
[Pages 71630-71634]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-28420]


=======================================================================
-----------------------------------------------------------------------

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: Final rule.

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

SUMMARY: On July 1, 2014, the Office of the Comptroller of the Currency 
(OCC) proposed to adjust the timing of the annual stress testing cycle 
and to clarify the method used to calculate regulatory capital in the 
stress tests (proposed rule). The OCC is now adopting the proposed rule 
as final (final rule). The final rule shifts the dates of the annual 
stress testing cycle by approximately three months. The final rule also 
provides that covered institutions will not have to calculate their 
risk-weighted assets using the internal ratings-based and advanced 
measurement approaches until the stress testing cycle beginning on 
January 1, 2016.

DATES: The rule is effective January 2, 2015.

FOR FURTHER INFORMATION CONTACT: Robert Scavotto, Deputy Director, 
International Analysis and Banking Condition, (202) 649-5477; 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)(2) of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (``Dodd-Frank Act'') requires the federal banking 
agencies to issue regulations requiring financial companies with more 
than $10 billion in assets to conduct annual stress tests (``company-
run stress tests''). In October 2012, the OCC, the Board of Governors 
of the Federal Reserve System (``Board''), and the Federal Deposit 
Insurance Corporation issued rules implementing the company-run stress 
tests required by the Dodd-Frank Act. Under these rules, the OCC 
distributes

[[Page 71631]]

stress scenarios by November 15 \1\ to covered institutions. 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 sets of economic and financial conditions, including baseline, 
adverse, and severely adverse scenarios.
---------------------------------------------------------------------------

II. Description of the Final Rule

A. Shift in Stress Testing Cycle

    The proposed rule would have shifted the dates of the stress 
testing cycle by approximately three months.\2\ The proposed rule would 
have relieved 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.
---------------------------------------------------------------------------

    \2\ 79 FR 37231 (July 1, 2014).
---------------------------------------------------------------------------

    Under the proposed rule, covered institutions with $50 billion or 
more in assets would have been required to submit the results of their 
company-run stress tests to the OCC by April 7 \3\ and would have been 
required to disclose stress test results between June 15 and July 15. 
However, within this disclosure period a covered institution that is a 
consolidated subsidiary of a bank holding company or savings and loan 
holding company subject to supervisory stress tests conducted by the 
Board pursuant to 12 CFR part 252 could 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 could 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). 
Under the proposed rule, covered institutions with between $10 and $50 
billion in assets would have been required to submit the results of 
their company-run stress tests to the OCC by July 31 and publish those 
results between October 15 and October 31.
---------------------------------------------------------------------------

    \3\ Under the final rule the reporting deadline has been changed 
to April 5.
---------------------------------------------------------------------------

    The OCC received four comments on the proposed rule from banking 
organizations and trade associations. The commenters supported the 
proposed schedule shift and recommended that the OCC adopt the schedule 
shift earlier than proposed (adopting the schedule shift for the stress 
test cycle beginning October 1, 2014 instead of 2015, as proposed). 
Commenters argued that the current January 5 submission deadline has 
been challenging because of other year-end financial reporting 
obligations. The OCC recognizes these concerns and believes that 
covered institutions should conduct these tests at a time when they are 
better able to manage their resources. However, adopting the schedule 
shift one year earlier than proposed would disrupt planning for the 
stress testing schedule beginning October 1, 2014. Accordingly, under 
the final rule the schedule shift will take effect in the subsequent 
stress testing cycle, which will begin January 1, 2016.
    The following table summarizes the changes made by the final rule.

  Table 1--Revised Annual Stress Test Timeline for Covered Institutions
                   With $50 Billion or More in Assets
------------------------------------------------------------------------
         Action required             Current rule         Final rule
------------------------------------------------------------------------
``As of'' Date for Financial      September 30......  December 31.
 Data Used by Stress Test.
Distribution of Stress Scenarios  By November 15....  By February 15.
 in OCC.
Submission of Stress Test         By January 5......  By April 5.
 Results.
Disclosure of Results Summary...  Between March 15    Between June 15
                                   and March 31.       and July 15
                                                       except no earlier
                                                       than Board
                                                       publication of
                                                       the supervisory
                                                       stress test
                                                       results of the
                                                       bank holding
                                                       company.
------------------------------------------------------------------------


  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 in Stress Test.
Distribution of Stress Scenarios  By November 15....  By February 15.
 by OCC.
Submission of Stress Test         By March 31.......  By July 31.
 Results.
Disclosure of Results Summary...  Between June 15     Between October 15
                                   and June 30.        and October 31.
------------------------------------------------------------------------

    All covered institutions with between $10 and $50 billion in assets 
will be required to submit the results of their company-run stress 
tests to the OCC by July 31 and publish those results between October 
15 and October 31. Covered institutions with $50 billion or more will 
be required to submit the results of their company-run stress tests to 
the OCC by April 5 and publish those results between June 15 and July 
15. The April 5 reporting deadline for covered institutions with $50 
billion or more in assets is a minor change from the April 7 deadline 
proposed in the proposed rule. The final rule also adopts the 
provisions in the proposed rule that prohibit a covered institution 
that is a consolidated subsidiary of a bank holding company or savings 
and loan holding company supervised by the

[[Page 71632]]

Board from disclosing its results until the Board has published the 
supervisory stress test results of the covered institution's parent 
holding company.
    With respect to covered institutions with assets between $10 and 
$50 billion, 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 or more. 
In that case we note that the covered institution also would be subject 
to the disclosure requirements applicable to covered institutions with 
$50 billion or more in assets.
    One commenter requested that the OCC release the stress test 
scenarios earlier than February 15 to give covered institutions more 
time to prepare their stress test submissions. Under the final rule, 
the OCC will provide the scenarios ``no later than'' February 15. The 
OCC recognizes the need for covered institutions to have adequate time 
to complete their submissions and will attempt to distribute the 
scenarios as early as possible.
    Two commenters requested that the OCC reduce the stress test 
planning horizon from nine quarters to eight quarters. Under the 
current stress testing rule covered institutions are required to make 
stress test projections over a planning horizon lasting nine quarters. 
The OCC believes that the nine-quarter planning horizon results in an 
actual planning horizon of eight quarters, as the first quarter of the 
horizon is contemporaneous with the quarter in which the covered 
institution submits its stress test results. As such, in order to 
maintain a two-year stress test planning horizon, the final rule 
maintains the nine-quarter requirement. The OCC will consider the 
appropriate length of the planning horizon in light of future 
experience with stress testing.
    The proposed rule would also have amended 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 and 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 have established 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. The 
OCC received no comments on this aspect of the proposed rule and is 
adopting the proposed changes as final.

B. Clarification on the Use of Basel III Advanced Approaches

    On October 11, 2013, the OCC published revised risk-based and 
leverage capital rules that implement the Basel III framework.\4\ In 
light of the issuance of the revised capital rules, the proposed rule 
would have clarified 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.\5\ 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.\6\ The proposed rule would have provided that covered institutions 
are not required to calculate their risk-weighted assets using the 
advanced approaches in their stress testing projections until the 
stress testing cycle beginning on January 1, 2016--even if an 
organization has previously exited parallel run.
---------------------------------------------------------------------------

    \4\ 78 FR 62018.
    \5\ 12 CFR 46.6(a)(2).
    \6\ 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 proposed rule would have clarified 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. The OCC received no comments on this aspect 
of the proposed rule and is adopting it as final.

III. 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. 
The final rule amends 12 CFR part 46, which has an approved information 
collection under the PRA (OMB Control No. 1557-0311). The amendments 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 final rule 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 final rule, an agency 
prepare a regulatory flexibility analysis that describes the impact of 
a proposed rule on small entities (defined by the Small Business 
Administration for purposes of the RFA to include

[[Page 71633]]

banking entities with total assets of $550 million or less). 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 
and publishes its certification and a brief explanatory statement in 
the Federal Register together with the rule.
    As discussed in the SUPPLEMENTARY INFORMATION above, the 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 final rule will 
not have a significant economic impact on a substantial number of small 
entities because no small national banks or Federal savings 
associations will be affected by the final rule. Accordingly, a 
regulatory flexibility analysis is not required.

Unfunded Mandates Reform Act

    The OCC has analyzed the final 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 final 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 final 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 final rule 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 OCC to use 
plain language in all proposed and final rules published after January 
1, 2000. The OCC has sought to present the final rule in a simple and 
straightforward manner. The OCC did not receive any comment on its use 
of plain language.

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 amends 12 CFR 
part 46 as follows:

PART 46--ANNUAL STRESS TEST

0
1. The authority citation for part 46 is revised to read as follows:

    Authority:  12 U.S.C. 93a; 1463(a)(2); 5365(i)(2); and 
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 under revised Annual Stress Test schedule. A national bank 
or Federal savings association that becomes a covered institution, as 
defined in Sec.  46.2, 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 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 part 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,

[[Page 71634]]

2014) and on or before April 5 (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. Section 46.8 is amended by revising paragraphs (a)(1) and (2) 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: November 19, 2014.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 2014-28420 Filed 12-2-14; 8:45 am]
BILLING CODE 4810-33-P