Agency Information Collection Activities: Information Collection Revision; Comment Request (3064-0189), 75152-75155 [2014-29418]

Download as PDF 75152 Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES from private employment,3 the public sector,4 colleges and universities,5 and referral unions.6 This burden assessment is based on an estimate of the number of job applications submitted to all Title VIIcovered employers in one year, including paper-based and electronic applications. The total number of job applications submitted every year to covered employers is estimated to be 1,529,399,487, based on a National Organizations Survey 7 average of approximately 35 applications 8 for every hire and a Bureau of Labor Statistics data estimate of 43,414,608 annual hires.9 This figure also includes 119,920 applicants for union membership reported on the EEO–3 form for 2012. The employer burden associated with collecting and storing applicant demographic data is based on the following assumptions: Applicants would need to be asked to provide three pieces of information—sex, race/ ethnicity, and an identification number (a total of approximately 13 keystrokes); the employer would need to transfer information received to a database either manually or electronically; and the employer would need to store the 13 characters of information for each applicant. Recordkeeping costs and burden are assumed to be the time cost associated with entering 13 keystrokes. 3 Source: Census Bureau 2011 County Business Patterns: Number of Firms, Number of Establishments, Employment, and Annual Payroll by Enterprise Employment Size for the United States and States, Totals: 2011, Release Date 12.13. (https://www.census.gov/econ/susb/.) Select U.S. & states, Totals. Downloaded on October 2, 2014. 4 Source of original data: 2012 Census of Governments: Employment. Individual Government Data File (https://www.census.gov/govs/apes/), Local Downloadable Data zip file 12ind_all_tabs.xls. The original number of government entities was adjusted to only include those with 15 or more employees. 5 Source: U.S. Department of Education, National Center for Education Statistics, IPEDS, Fall 2013. Number and percentage distribution of Title IV institutions, by control of institution, level of institution, and region: United States and other U.S. jurisdictions, academic year 2013–1(https:// nces.ed.gov/pubsearch/ pubsinfo.asp?pubid=2014066rev). 6 EEO–3 Reports filed by referral unions in 2012 with EEOC. 7 The National Organizations Survey is a survey of business organizations across the United States in which the unit of analysis is the actual workplace (https://www.icpsr.umich.edu/icpsrweb/ ICPSR/studies/04074). 8 The number of applications provided by NOS is 35.225 and therefore calculations will not result in the same total amount due to rounding. 9 Bureau of Labor Statistics Job Openings and Labor Turnover Survey, 2013 annual level data (Not seasonally adjusted), (https://www.bls.gov/jlt/ data.htm) is the source of the original data. The BLS figure (50,718,000) has been adjusted to only include hires by firms with 15 or more employees. VerDate Sep<11>2014 19:49 Dec 16, 2014 Jkt 235001 Assuming that the required recordkeeping takes 30 seconds per record, and assuming a total of 1,529,399,487 paper and electronic applications per year (as calculated above), the resulting UGESP burden hours would be 6,372,498. Based on a wage rate of $15.48 per hour for the individuals entering the data, the collection and storage of applicant demographic data would come to approximately $98,646,267 per year for Title VII-covered employers. We expect that the foregoing assumptions are overinclusive, because many employers have electronic job application processes that should be able to capture applicant flow data automatically. While the burden hours and costs for the UGESP recordkeeping requirement seem very large, the average burden per employer is relatively small. We estimate that UGESP applies to 914,843 employers. Therefore the cost per covered employer is less than $108 ($98,646,267 divided by 914,843 is equal to $107.87). Additionally UGESP allows for simplified recordkeeping for employers with more than 15 but less than 100 employees.10 Dated: December 11, 2014. Jenny R. Yang, Chair, Equal Employment Opportunity Commission. [FR Doc. 2014–29593 Filed 12–16–14; 8:45 am] BILLING CODE 6570–01–P FEDERAL DEPOSIT INSURANCE CORPORATION Agency Information Collection Activities: Information Collection Revision; Comment Request (3064– 0189) Federal Deposit Insurance Corporation (FDIC). ACTION: Notice of Information Collection To Be Submitted to OMB for Review and Approval Under the Paperwork Reduction Act, and Request for Comment AGENCY: The Federal Deposit Insurance Corporation (‘‘FDIC’’) invites SUMMARY: 10 See 29 CFR 1607.15A(1): Simplified recordkeeping for users with less than 100 employees. In order to minimize recordkeeping burdens on employers who employ one hundred (100) or fewer employees, and other users not required to file EEO–1, et seq., reports, such users may satisfy the requirements of this section 15 if they maintain and have available records showing, for each year: (a) The number of persons hired, promoted, and terminated for each job, by sex, and where appropriate by race and national origin; (b)The number of applicants for hire and promotion by sex and where appropriate by race and national origin; and (c) The selection procedures utilized (either standardized or not standardized). PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 the general public and other Federal agencies to take this opportunity to comment on a revision of a continuing information collection, 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,’’ (3064–0189), as required by the Paperwork Reduction Act of 1995. DATES: Comments must be received by January 16, 2015. ADDRESSES: You may submit written comments by any of the following methods: • Agency Web site: https:// www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC Web site. • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Email: Comments@FDIC.gov. Include ‘‘Annual Stress Test Reporting Template and Documentation for Covered Institutions with Total Consolidated Assets of $50 Billion or More’’ on the subject line of the message. • Mail: Gary A. Kuiper, Counsel, or John Popeo, Counsel, Legal Division, Attention: Comments, FDIC, 550 17th Street NW., MB–3098, Washington, DC 20429. • Hand Delivery/Courier: 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. • Public Inspection: All comments received will be posted without change to https://www.fdic.gov/regulations/laws/ federal/ including any personal information provided. Additionally, you may send a copy of your comments: By mail to the U.S. Office of Management and Budget, 725 17th Street NW., #10235, Washington, DC 20503 or by facsimile to 202.395.6974, Attention: Federal Banking Agency Desk Officer. FOR FURTHER INFORMATION CONTACT: You can request additional information from John Popeo (202.898.6923), or Gary Kuiper (202.898.3877), Legal Division, Federal Deposit Insurance Corporation, 550 17th Street NW., MB–3098, Washington, DC 20429. In addition, copies of the templates referenced in this notice can be found on the FDIC’s Web site (https://www.fdic.gov/ regulations/laws/federal/). SUPPLEMENTARY INFORMATION: The FDIC is requesting comment on the following changes to the information collection: E:\FR\FM\17DEN1.SGM 17DEN1 Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES 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 Number: 3064–0189 Description: Section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act 1 (‘‘DoddFrank Act’’) requires certain financial companies, including state nonmember banks and state 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 state nonmember bank or state savings association is a ‘‘covered bank’’ 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 bank 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 15, 2012, the FDIC published in the Federal Register a final rule implementing the section 165(i)(2) annual stress test requirement.6 The final rule requires covered banks to meet specific reporting requirements under section 165(i)(2). In 2012, the FDIC first implemented the reporting templates for covered banks with total consolidated assets of $50 billion or more and provided instructions for completing the reports.7 This information collection notice describes revisions by the FDIC to those reporting templates and related instructions, as well as required information. The information contained in these information collections may be given confidential treatment to the extent allowed by law (5 U.S.C. 552(b)(4)). Consistent with past practice, the FDIC intends to use the data collected to assess the reasonableness of the stress test results of covered banks and to provide forward-looking information to the FDIC regarding a covered institution’s capital adequacy. The FDIC 1 Public Law 111–203, 124 Stat. 1376 (July 21, 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 62417 (October 15, 2012). 7 77 FR 52718 (August 30, 2012) and 77 FR 70435 (November 26, 2012). VerDate Sep<11>2014 19:49 Dec 16, 2014 Jkt 235001 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 bank. The stress test results are expected to support ongoing improvement in a covered bank’s stress testing practices with respect to its internal assessments of capital adequacy and overall capital planning. The FDIC recognizes that many covered banks with total consolidated assets of $50 billion or more are required to submit reports using the Board’s Comprehensive Capital Analysis and Review (‘‘CCAR’’) reporting form, FR Y–14A. The FDIC also recognizes the Board has modified the FR Y–14A, and the FDIC will keep its reporting requirements as similar as possible with the Board’s FR Y–14A in order to minimize burden on affected institutions. Therefore, the FDIC is revising its reporting requirements to remain consistent with the Board’s FR Y–14A for covered banks with total consolidated assets of $50 billion or more. Revisions to Reporting Templates for Institutions With $50 Billion or More in Assets On July 9, 2013, the FDIC approved an interim final rule that will revise and replace the FDIC’s risk-based and leverage capital requirements to be consistent with agreements reached by the Basel Committee on Banking Supervision in ‘‘Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems’’ (‘‘Basel III’’).8 The final rule was published in the Federal Register on April 14, 2014 (‘‘Revised Capital Framework’’).9 The revisions include implementation of a new definition of regulatory capital, a new common equity tier 1 minimum capital requirement, a higher minimum tier 1 capital requirement, and, for banking organizations subject to the Advanced Approaches capital rules, a supplementary leverage ratio that incorporates a broader set of exposures in the denominator measure. In addition, the rule will amend the methodologies for determining risk weighted assets. All banking organizations that are not subject to the Advanced Approaches Rule must begin to comply with the Revised Capital Framework on January 1, 2015. Due to the timing of the Dodd-Frank Act stress test and the revised capital rulemaking, the FDIC considered several 8 78 9 79 PO 00000 FR 55340 (September 10, 2013). FR 20754 (April 14, 2014). Frm 00040 Fmt 4703 Sfmt 4703 75153 options for the timing and scope of this proposal to collect information related to the capital rulemaking. On September 30, 2014, the FDIC published in the Federal Register, a 60-day information collection notice requesting public comment on proposed revisions to the DFAST–14A stress testing reporting templates.10 The FDIC received no comments on the proposed changes to the DFAST–14A stress testing reporting templates. The revisions to the DFAST– 14A reporting templates consist of adding data items, deleting data items, and redefining existing data items. These changes will provide additional information to greatly enhance the ability of the FDIC to analyze the validity and integrity of firms’ projections, improve comparability across firms, and increase consistency between the FR Y–14A reporting templates and DFAST–14A reporting templates. The FDIC has conducted a thorough review of the changes and believes that the incremental burden of these changes is justified given the need for these data to properly conduct the FDIC’s supervisory responsibilities related to the stress testing. Summary Schedule Revisions to Income Statement SubSchedule Under the current reporting template,, there is a definitional difference between the realized gains (losses) on available-for-sale (‘‘AFS’’) and held-tomaturity (‘‘HTM’’) securities reported on the Income Statement (items 127 and 128) and the AFS and HTM totals computed on sub-schedule A.3.c (Projected Other-Than-Temporary Impairment (‘‘OTTI’’) for AFS and HTM Securities by Portfolio), resulting from the Revised Capital Framework. In order to accurately collect information for the Income Statement, the FDIC proposes changing items 127 and 128 to be reported items instead of being equal to the total amounts on sub-schedule A.3.c. Additionally, for consistency with changes proposed to sub-schedule A.5 (Counterparty Risk) 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 SubSchedules To better align the collection of regulatory capital components with 10 79 E:\FR\FM\17DEN1.SGM FR 58780 (September 30, 2014). 17DEN1 75154 Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES schedule RC–R of the Reports of Condition and Income (‘‘Call Report’’), the definitions of the items on schedule A.1.d (Capital) have been modified to refer to or mirror the definitions that appear on the Call Report. Furthermore, in order to ensure comparability among respondents and that transition provisions are being accurately and consistently applied, respondents would be required to apply the appropriate transition provisions to all transition-affected items of schedule A.1.d per the revised regulatory capital rule. With regard to the RWA subschedules, the standardized approach RWA and market RWA items of schedule A.1.c.1 (General RWA) have been changed in accordance with modifications to schedule RC–R of the Call Report that are currently being considered, and moved to a separate schedule A.1.c.2 (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 sub-schedule A.1.c.2 (Advanced RWA) would be removed. Despite the alignment of these schedules with the Call Report, the column of actual values has not been removed because the values reported on these schedules are assumed to have completed the transition schedule outlined in the Revised Capital Framework, whereas values reported on the Call Report follow the transition schedule. Revisions to Retail Repurchase SubSchedule Due to recent activity by respondents involving settlements related to their representation & warranty (‘‘R&W’’) liabilities, additional detail would be collected about the R&W liabilities. Specifically, 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 Sub-Schedule Because covered bonds are a material exposure to companies that have unique characteristics relative to other asset categories currently on this subschedule, the FDIC would add a covered bond category to sub-schedules A.3.b, VerDate Sep<11>2014 19:49 Dec 16, 2014 Jkt 235001 A.3.c, A.3.d, and A.3.e in order to appropriately and separately evaluate respondents’ projections of these assets. Additionally, two columns would be added to collect information for each of the asset categories of sub-schedule A.3.d that would allow changes in market value to be distinguished from changes in portfolio allocation for each projected quarter: (1) Beginning Fair Market Value, and (2) Fair Value Rate of Change, which is the weighted average percent 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 subschedules, and the AFS and HTM portions of sub-schedule A.3.c would be combined into an additional column to identify AFS amounts versus HTM amounts. Revisions to Trading Sub-Schedule Because credit valuation adjustment (‘‘CVA’’) losses are modeled separately from trading portfolio losses, the FDIC proposes that the profit (loss) amount related to CVA hedges be reported separately from other trading activity in the trading sub-schedule. Revisions to Counterparty Risk SubSchedule In order 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, 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 Trading Issuer Default Losses. Additionally, items 3 (Counterparty Incremental Default Losses) and 3a (Impact of CCR IDR Hedges) would be removed, item 4 (Other CCR Losses) would be modified to be CCR Losses, and the item, Effect of CCR Hedges, would be added. Regulatory Capital Instruments Schedule Proposed changes to the Regulatory Capital Instruments Schedule would be responsive to industry feedback and ensure that information is being accurately captured. Specifically, the FDIC proposes (1) adding an item that collects employee stock compensation to the four quarterly redemption/ repurchase and issuance activity subsections; (2) adding 18 items to the PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 general risk-based capital rules section and 28 items to the revised regulatory capital section that collect activity other than issuances or repurchases for each instrument in the section, because respondents add this activity to other items; 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, since they would be able to be computed using the items proposed above. Regulatory Capital Transitions Schedule Similar to the changes proposed to the RWA and Capital sub-schedules 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 modifications to schedule RC–R of the Call Report, which are currently being considered. The FDIC proposes (1) aligning the definitions of the items on the Capital Composition sub-schedule to be consistent with schedule RC–R; (2) modifying the RWA General subschedule to align with proposed revisions to schedule RC–R, 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 of the Advanced RWA sub-schedule to align with sub-schedule A.1.c.2 (Advanced RWA on the Summary Schedule), for a net increase of 21 items; and (4) revising the Leverage Ratio sub-schedule in accordance with the supplementary leverage ratio rulemaking proposal, for a net increase of 10 items. Despite the alignment of these schedules with the Call Report, the column of actual values has not been removed because the values reported on these schedules are assumed to have completed the transition schedule outlined in the Revised Capital Framework, whereas values reported on the Call Report follow the transition schedule. Operational Risk Schedule Proposed changes to the Operational Risk Schedule would provide greater insight into the types and frequency of operational risk expenses incurred by respondents, which would improve ongoing supervisory activities. The FDIC proposes adding a data item for respondents to voluntarily disclose how much of their mortgage related litigation reserve is attributable to contractual representation and warranty claims. E:\FR\FM\17DEN1.SGM 17DEN1 Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices Counterparty Credit Risk Schedule Significant additions would be made to the Counterparty Credit Risk Schedule in order to more adequately and accurately capture exposure information related to derivatives and securities financing transactions (‘‘SFTs’’). 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, and have been carefully evaluated internally and vetted with respondents. The FDIC proposes: (1) Adding a subschedule that collects the derivative exposures at a legal-entity nettingagreement level for the top 25 noncentral clearing counterparty (‘‘nonCCP’’) 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 subcategories for a total of 30 specific asset types; (3) removing all columns with the institution specification of margin period of risk (‘‘MPOR’’) under the global market shocks from subschedules F.1.a through F.1.e and F.2; (4) removing the column LGD Derived from Unstressed PD on F.2; and (5) adding columns to worksheet F.1.e to collect both gross and net stressed and unstressed current exposure to central clearing counterparties. Burden Estimates The FDIC estimates the burden of this collection as follows: mstockstill on DSK4VPTVN1PROD with NOTICES Current Number of Respondents: 4. Annual Burden per Respondent: 1,040. Total Annual Burden: 4,160. Proposed Estimated Number of Respondents: 4. Annual Burden per Respondent: 1,040. Estimated Total Annual Burden: 4,160 hours. The FDIC recognizes that the Board has estimated 88,401 hours for bank holding companies to prepare the Summary, Macroscenario, Operational risk, Regulatory capital transitions, Regulatory capital instruments, and Counterparty credit risk schedules submitted for the FR Y–14A. The FDIC VerDate Sep<11>2014 19:49 Dec 16, 2014 Jkt 235001 believes that the systems covered institutions use to prepare the FR Y– 14A reporting templates will also be used to prepare the reporting templates described in this notice. Comments continue to be invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the FDIC, including whether the information has practical utility; (b) The accuracy of the FDIC’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 at Washington, DC, this 11th day of December. Robert E. Feldman, Executive Secretary, Federal Deposit Insurance Corporation. [FR Doc. 2014–29418 Filed 12–16–14; 8:45 am] BILLING CODE 6714–01–P 75155 (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Unless otherwise noted, comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than January 12, 2015. A. Federal Reserve Bank of Chicago (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690–1414: 1. Brookfield Financial Holdings, Inc., Brookfield, Illinois; to become a bank holding company by acquiring 100 percent of the voting shares of First National Bank of Brookfield, Brookfield, Illinois. B. Federal Reserve Bank of Minneapolis (Jacquelyn K. Brunmeier, Assistant Vice President) 90 Hennepin Avenue, Minneapolis, Minnesota 55480–0291: 1. Border Bancshares Inc., Greenbush, Minnesota; to acquire 100 percent of the voting shares of First Advantage Bank, Coon Rapids, Minnesota. 2. Park Financial Group, Inc., Minneapolis, Minnesota; to become a bank holding company by acquiring 100 percent of the voting shares of Park State Bank, Duluth, Minnesota. FEDERAL RESERVE SYSTEM Formations of, Acquisitions by, and Mergers of Bank Holding Companies Board of Governors of the Federal Reserve System, December 12, 2014. Margaret McCloskey Shanks, Deputy Secretary of the Board. [FR Doc. 2014–29521 Filed 12–16–14; 8:45 am] BILLING CODE 6210–01–P The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below. The applications listed below, as well as other related filings required by the Board, are available for immediate inspection at the Federal Reserve Bank indicated. The applications will also be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Disease Control and Prevention [60Day–15–0932] Proposed Data Collections Submitted for Public Comment and Recommendations The Centers for Disease Control and Prevention (CDC), as part of its continuing effort to reduce public burden and maximize the utility of government information, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. To request more information on the below proposed project or to obtain a copy of the information collection plan and instruments, call 404–639–7570 or send comments to Leroy A. Richardson, 1600 E:\FR\FM\17DEN1.SGM 17DEN1

Agencies

[Federal Register Volume 79, Number 242 (Wednesday, December 17, 2014)]
[Notices]
[Pages 75152-75155]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-29418]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Information Collection 
Revision; Comment Request (3064-0189)

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice of Information Collection To Be Submitted to OMB for 
Review and Approval Under the Paperwork Reduction Act, and Request for 
Comment

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

SUMMARY: The Federal Deposit Insurance Corporation (``FDIC'') invites 
the general public and other Federal agencies to take this opportunity 
to comment on a revision of a continuing information collection, 
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,'' (3064-0189), as required by the Paperwork 
Reduction Act of 1995.

DATES: Comments must be received by January 16, 2015.

ADDRESSES: You may submit written comments by any of the following 
methods:
     Agency Web site: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC 
Web site.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: Comments@FDIC.gov. Include ``Annual Stress Test 
Reporting Template and Documentation for Covered Institutions with 
Total Consolidated Assets of $50 Billion or More'' on the subject line 
of the message.
     Mail: Gary A. Kuiper, Counsel, or John Popeo, Counsel, 
Legal Division, Attention: Comments, FDIC, 550 17th Street NW., MB-
3098, Washington, DC 20429.
     Hand Delivery/Courier: 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.
     Public Inspection: All comments received will be posted 
without change to https://www.fdic.gov/regulations/laws/federal/ 
including any personal information provided.
    Additionally, you may send a copy of your comments: By mail to the 
U.S. Office of Management and Budget, 725 17th Street NW., #10235, 
Washington, DC 20503 or by facsimile to 202.395.6974, Attention: 
Federal Banking Agency Desk Officer.

FOR FURTHER INFORMATION CONTACT: You can request additional information 
from John Popeo (202.898.6923), or Gary Kuiper (202.898.3877), Legal 
Division, Federal Deposit Insurance Corporation, 550 17th Street NW., 
MB-3098, Washington, DC 20429. In addition, copies of the templates 
referenced in this notice can be found on the FDIC's Web site (https://www.fdic.gov/regulations/laws/federal/).

SUPPLEMENTARY INFORMATION: The FDIC is requesting comment on the 
following changes to the information collection:

[[Page 75153]]

    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 Number: 3064-0189
    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 state nonmember banks and state 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 state 
nonmember bank or state savings association is a ``covered bank'' 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 bank 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\
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    \1\ Public Law 111-203, 124 Stat. 1376 (July 21, 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).
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    On October 15, 2012, the FDIC published in the Federal Register a 
final rule implementing the section 165(i)(2) annual stress test 
requirement.\6\ The final rule requires covered banks to meet specific 
reporting requirements under section 165(i)(2). In 2012, the FDIC first 
implemented the reporting templates for covered banks with total 
consolidated assets of $50 billion or more and provided instructions 
for completing the reports.\7\ This information collection notice 
describes revisions by the FDIC to those reporting templates and 
related instructions, as well as required information. The information 
contained in these information collections may be given confidential 
treatment to the extent allowed by law (5 U.S.C. 552(b)(4)).
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    \6\ 77 FR 62417 (October 15, 2012).
    \7\ 77 FR 52718 (August 30, 2012) and 77 FR 70435 (November 26, 
2012).
---------------------------------------------------------------------------

    Consistent with past practice, the FDIC intends to use the data 
collected to assess the reasonableness of the stress test results of 
covered banks and to provide forward-looking information to the FDIC 
regarding a covered institution's capital adequacy. The FDIC 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 bank. The stress test results 
are expected to support ongoing improvement in a covered bank's stress 
testing practices with respect to its internal assessments of capital 
adequacy and overall capital planning.
    The FDIC recognizes that many covered banks with total consolidated 
assets of $50 billion or more are required to submit reports using the 
Board's Comprehensive Capital Analysis and Review (``CCAR'') reporting 
form, FR Y-14A. The FDIC also recognizes the Board has modified the FR 
Y-14A, and the FDIC will keep its reporting requirements as similar as 
possible with the Board's FR Y-14A in order to minimize burden on 
affected institutions. Therefore, the FDIC is revising its reporting 
requirements to remain consistent with the Board's FR Y-14A for covered 
banks with total consolidated assets of $50 billion or more.

Revisions to Reporting Templates for Institutions With $50 Billion or 
More in Assets

    On July 9, 2013, the FDIC approved an interim final rule that will 
revise and replace the FDIC's risk-based and leverage capital 
requirements to be consistent with agreements reached by the Basel 
Committee on Banking Supervision in ``Basel III: A Global Regulatory 
Framework for More Resilient Banks and Banking Systems'' (``Basel 
III'').\8\ The final rule was published in the Federal Register on 
April 14, 2014 (``Revised Capital Framework'').\9\ The revisions 
include implementation of a new definition of regulatory capital, a new 
common equity tier 1 minimum capital requirement, a higher minimum tier 
1 capital requirement, and, for banking organizations subject to the 
Advanced Approaches capital rules, a supplementary leverage ratio that 
incorporates a broader set of exposures in the denominator measure. In 
addition, the rule will amend the methodologies for determining risk 
weighted assets. All banking organizations that are not subject to the 
Advanced Approaches Rule must begin to comply with the Revised Capital 
Framework on January 1, 2015.
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    \8\ 78 FR 55340 (September 10, 2013).
    \9\ 79 FR 20754 (April 14, 2014).
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    Due to the timing of the Dodd-Frank Act stress test and the revised 
capital rulemaking, the FDIC considered several options for the timing 
and scope of this proposal to collect information related to the 
capital rulemaking. On September 30, 2014, the FDIC published in the 
Federal Register, a 60-day information collection notice requesting 
public comment on proposed revisions to the DFAST-14A stress testing 
reporting templates.\10\ The FDIC received no comments on the proposed 
changes to the DFAST-14A stress testing reporting templates. The 
revisions to the DFAST-14A reporting templates consist of adding data 
items, deleting data items, and redefining existing data items. These 
changes will provide additional information to greatly enhance the 
ability of the FDIC to analyze the validity and integrity of firms' 
projections, improve comparability across firms, and increase 
consistency between the FR Y-14A reporting templates and DFAST-14A 
reporting templates. The FDIC has conducted a thorough review of the 
changes and believes that the incremental burden of these changes is 
justified given the need for these data to properly conduct the FDIC's 
supervisory responsibilities related to the stress testing.
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    \10\ 79 FR 58780 (September 30, 2014).
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Summary Schedule

Revisions to Income Statement Sub-Schedule

    Under the current reporting template,, there is a definitional 
difference between the realized gains (losses) on available-for-sale 
(``AFS'') and held-to-maturity (``HTM'') securities reported on the 
Income Statement (items 127 and 128) and the AFS and HTM totals 
computed on sub-schedule A.3.c (Projected Other-Than-Temporary 
Impairment (``OTTI'') for AFS and HTM Securities by Portfolio), 
resulting from the Revised Capital Framework. In order to accurately 
collect information for the Income Statement, the FDIC proposes 
changing items 127 and 128 to be reported items instead of being equal 
to the total amounts on sub-schedule A.3.c. Additionally, for 
consistency with changes proposed to sub-schedule A.5 (Counterparty 
Risk) 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 Sub-Schedules

    To better align the collection of regulatory capital components 
with

[[Page 75154]]

schedule RC-R of the Reports of Condition and Income (``Call Report''), 
the definitions of the items on schedule A.1.d (Capital) have been 
modified to refer to or mirror the definitions that appear on the Call 
Report. Furthermore, in order to ensure comparability among respondents 
and that transition provisions are being accurately and consistently 
applied, respondents would be required to apply the appropriate 
transition provisions to all transition-affected items of schedule 
A.1.d per the revised regulatory capital rule. With regard to the RWA 
sub-schedules, the standardized approach RWA and market RWA items of 
schedule A.1.c.1 (General RWA) have been changed in accordance with 
modifications to schedule RC-R of the Call Report that are currently 
being considered, and moved to a separate schedule A.1.c.2 
(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 sub-schedule A.1.c.2 
(Advanced RWA) would be removed. Despite the alignment of these 
schedules with the Call Report, the column of actual values has not 
been removed because the values reported on these schedules are assumed 
to have completed the transition schedule outlined in the Revised 
Capital Framework, whereas values reported on the Call Report follow 
the transition schedule.

Revisions to Retail Repurchase Sub-Schedule

    Due to recent activity by respondents involving settlements related 
to their representation & warranty (``R&W'') liabilities, additional 
detail would be collected about the R&W liabilities. Specifically, 
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 Sub-Schedule

    Because covered bonds are a material exposure to companies that 
have unique characteristics relative to other asset categories 
currently on this sub-schedule, the FDIC would add a covered bond 
category to sub-schedules A.3.b, A.3.c, A.3.d, and A.3.e in order to 
appropriately and separately evaluate respondents' projections of these 
assets. Additionally, two columns would be added to collect information 
for each of the asset categories of sub-schedule A.3.d that would allow 
changes in market value to be distinguished from changes in portfolio 
allocation for each projected quarter: (1) Beginning Fair Market Value, 
and (2) Fair Value Rate of Change, which is the weighted average 
percent 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 sub-schedules, and 
the AFS and HTM portions of sub-schedule A.3.c would be combined into 
an additional column to identify AFS amounts versus HTM amounts.

Revisions to Trading Sub-Schedule

    Because credit valuation adjustment (``CVA'') losses are modeled 
separately from trading portfolio losses, the FDIC proposes that the 
profit (loss) amount related to CVA hedges be reported separately from 
other trading activity in the trading sub-schedule.

Revisions to Counterparty Risk Sub-Schedule

    In order 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, 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 Trading Issuer 
Default Losses. Additionally, items 3 (Counterparty Incremental Default 
Losses) and 3a (Impact of CCR IDR Hedges) would be removed, item 4 
(Other CCR Losses) would be modified to be CCR Losses, and the item, 
Effect of CCR Hedges, would be added.

Regulatory Capital Instruments Schedule

    Proposed changes to the Regulatory Capital Instruments Schedule 
would be responsive to industry feedback and ensure that information is 
being accurately captured. Specifically, the FDIC 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 that collect activity other than 
issuances or repurchases for each instrument in the section, because 
respondents add this activity to other items; 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, since they would be able to be computed using the items 
proposed above.

Regulatory Capital Transitions Schedule

    Similar to the changes proposed to the RWA and Capital sub-
schedules 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 modifications to 
schedule RC-R of the Call Report, which are currently being considered. 
The FDIC proposes (1) aligning the definitions of the items on the 
Capital Composition sub-schedule to be consistent with schedule RC-R; 
(2) modifying the RWA General sub-schedule to align with proposed 
revisions to schedule RC-R, 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 of the Advanced RWA 
sub-schedule to align with sub-schedule A.1.c.2 (Advanced RWA on the 
Summary Schedule), for a net increase of 21 items; and (4) revising the 
Leverage Ratio sub-schedule in accordance with the supplementary 
leverage ratio rulemaking proposal, for a net increase of 10 items. 
Despite the alignment of these schedules with the Call Report, the 
column of actual values has not been removed because the values 
reported on these schedules are assumed to have completed the 
transition schedule outlined in the Revised Capital Framework, whereas 
values reported on the Call Report follow the transition schedule.

Operational Risk Schedule

    Proposed changes to the Operational Risk Schedule would provide 
greater insight into the types and frequency of operational risk 
expenses incurred by respondents, which would improve ongoing 
supervisory activities.
    The FDIC proposes adding a data item for respondents to voluntarily 
disclose how much of their mortgage related litigation reserve is 
attributable to contractual representation and warranty claims.

[[Page 75155]]

Counterparty Credit Risk Schedule

    Significant additions would be made to the Counterparty Credit Risk 
Schedule in order to more adequately and accurately capture exposure 
information related to derivatives and securities financing 
transactions (``SFTs''). 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, and have been carefully evaluated 
internally and vetted with respondents.
    The FDIC proposes: (1) Adding a sub-schedule 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 institution specification of margin 
period of risk (``MPOR'') under the global market shocks from sub-
schedules F.1.a through F.1.e and F.2; (4) removing the column LGD 
Derived from Unstressed PD on F.2; and (5) adding columns to worksheet 
F.1.e to collect both gross and net stressed and unstressed current 
exposure to central clearing counterparties.

Burden Estimates

    The FDIC estimates the burden of this collection as follows:

Current

    Number of Respondents: 4.
    Annual Burden per Respondent: 1,040.
    Total Annual Burden: 4,160.

Proposed

    Estimated Number of Respondents: 4.
    Annual Burden per Respondent: 1,040.
    Estimated Total Annual Burden: 4,160 hours.
    The FDIC recognizes that the Board has estimated 88,401 hours for 
bank holding companies to prepare the Summary, Macroscenario, 
Operational risk, Regulatory capital transitions, Regulatory capital 
instruments, and Counterparty credit risk schedules submitted for the 
FR Y-14A. The FDIC believes that the systems covered institutions use 
to prepare the FR Y-14A reporting templates will also be used to 
prepare the reporting templates described in this notice. Comments 
continue to be invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the FDIC, including whether the 
information has practical utility;
    (b) The accuracy of the FDIC'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 at Washington, DC, this 11th day of December.
Robert E. Feldman,
Executive Secretary, Federal Deposit Insurance Corporation.
[FR Doc. 2014-29418 Filed 12-16-14; 8:45 am]
BILLING CODE 6714-01-P