Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB, 10483-10486 [2015-03973]
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Federal Register / Vol. 80, No. 38 / Thursday, February 26, 2015 / Notices
FEDERAL MINE SAFETY AND HEALTH
REVIEW COMMISSION
Sunshine Act Notice
February 23, 2015.
10:00 a.m., Thursday,
March 5, 2015.
PLACE: The Richard V. Backley Hearing
Room, Room 511N, 1331 Pennsylvania
Avenue NW., Washington, DC 20004
(enter from F Street entrance).
STATUS: Open.
MATTERS TO BE CONSIDERED: The
Commission will consider and act upon
the following in open session:
Pocahontas Coal Co., LLC. v. Secretary
of Labor, Docket No. WEVA 2014–202–
R; and Pocahontas Coal Co., LLC v.
Secretary of Labor, Docket Nos. WEVA
2014–642–R, et al. (Issues include
whether the Administrative Law Judges
erred in ruling that they lacked
jurisdiction to review a Notice of Pattern
of Violations and a Notice of Safeguard,
respectively.)
Any person attending this meeting
who requires special accessibility
features and/or auxiliary aids, such as
sign language interpreters, must inform
the Commission in advance of those
needs. Subject to 29 CFR 2706.150(a)(3)
and § 2706.160(d).
CONTACT PERSON FOR MORE INFO:
Emogene Johnson (202) 434–9935/(202)
708–9300 for TDD Relay/1–800–877–
8339 for toll free.
TIME AND DATE:
Sarah Stewart,
Deputy General Counsel.
[FR Doc. 2015–04080 Filed 2–24–15; 11:15 am]
BILLING CODE 6735–01–P
FEDERAL RESERVE SYSTEM
Agency Information Collection
Activities: Announcement of Board
Approval Under Delegated Authority
and Submission to OMB
Board of Governors of the
Federal Reserve System.
SUMMARY: Notice is hereby given of the
final approval of proposed information
collections by the Board of Governors of
the Federal Reserve System (Board)
under OMB delegated authority, as per
5 CFR 1320.16 (OMB Regulations on
Controlling Paperwork Burdens on the
Public). Board-approved collections of
information are incorporated into the
official OMB inventory of currently
approved collections of information.
Copies of the Paperwork Reduction Act
Submission, supporting statements and
approved collection of information
instrument(s) are placed into OMB’s
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AGENCY:
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public docket files. The Federal Reserve
may not conduct or sponsor, and the
respondent is not required to respond
to, an information collection that has
been extended, revised, or implemented
on or after October 1, 1995, unless it
displays a currently valid OMB control
number.
FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Acting Clearance
Officer, Mark Tokarski, Office of the
Chief Data Officer, Board of Governors
of the Federal Reserve System,
Washington, DC 20551 (202) 452–3829.
Telecommunications Device for the Deaf
(TDD) users may contact (202) 263–
4869, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
OMB Desk Officer, Shagufta Ahmed,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, New Executive Office Building,
Room 10235, 725 17th Street
NW.,Washington, DC 20503.
Final approval under OMB delegated
authority of the revision, without
extension, of the following reports: 1
1. Report title: Consolidated Financial
Statements for Holding Companies.
Agency form number: FR Y–9C.
OMB Control number: 7100–0128.
Frequency: Quarterly.
Reporters: Bank holding companies
(BHCs), savings and loan holding
companies (SLHCs), and securities
holding companies (SHCs) (collectively,
‘‘holding companies’’ (HCs)).
Estimated annual reporting hours:
133,464 hours.
Estimated average hours per response:
Non-advanced approaches HCs: 50.84
hours, and advanced approaches HCs:
52.09 hours.
Number of respondents: Nonadvanced approaches HCs: 644, and
advanced approaches HCs: 12.
General description of report: This
information collection is mandatory for
BHCs (12 U.S.C. 12 U.S.C.
1844(c)(1)(A)). Additionally, 12 U.S.C.
1467a(b)(2)(A) and 1850a(c)(1)(A),
respectively, authorize the Federal
Reserve to require that SLHCs and
supervised SHCs file the FR Y–9C with
the Federal Reserve. Confidential
treatment is not routinely given to the
financial data in this report. However,
confidential treatment for the reporting
information, in whole or in part, can be
requested in accordance with the
1 The family of FR Y–9 reporting forms also
contains three other mandatory reports, which are
not being revised at this time: The Parent Company
Only Financial Statements for Large Holding
Companies (FR Y–9LP), The Financial Statements
for Employee Stock Ownership Plan Holding
Companies (FR Y–9ES), and The Supplement to the
Consolidated Financial Statements for Holding
Companies (FR Y–9CS).
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instructions to the form, pursuant to
sections (b)(4), (b)(6), or (b)(8) of FOIA
(5 U.S.C. 522(b)(4), (b)(6), and (b)(8)).
Abstract: The FR Y–9C consists of
standardized financial statements
similar to the Federal Financial
Institutions Examination Council
(FFIEC) Consolidated Reports of
Condition and Income (Call Reports)
(FFIEC 031 & 041; OMB No. 7100–0036)
filed by commercial banks. It collects
consolidated data from HCs and is filed
quarterly by top-tier HCs with total
consolidated assets of $1 billion or
more. (Under certain circumstances
defined in the General Instructions,
BHCs under $1 billion may be required
to file the FR Y–9C.)
Current Actions: On August 6, 2014,
the Federal Reserve published a notice
in the Federal Register (79 FR 45808)
requesting public comment for 60 days
on the revision, without extension, of
the FR Y–9C. The comment period for
this notice expired on October 6, 2014.
The Federal Reserve received three
comment letters regarding proposed
revisions to the FR Y–9C from two
banking organizations and one bankers’
association. In addition, three
commenters submitted comments on the
proposed revisions to the Consolidated
Reports of Condition and Income (Call
Reports) (FFIEC 031 & 041; OMB No.
7100–0036), which parallel proposed
revisions to the FR Y–9C. Because these
changes to the Call Report parallel the
proposed revisions to the FR Y–9C, the
Federal Reserve also considered the
comments on the Call Report in
developing the final notice. In summary,
the commenters asked that the Federal
Reserve (1) clarify the applicability of
the proposed reporting requirements, (2)
add additional items, (3) combine two
items, (4) provide additional risk-weight
categories for some items, and (5) clarify
the instructions for certain line items.2
Detailed Discussion of Public
Comments and Recommended
Responses
1. Proposed FR Y–9C, Schedule HC–R,
Part II
In the March 2015 proposal, Schedule
HC–R, Part II—the portion of the Y–9C
that risk-weighted assets (RWAs)—
would be modified to ensure that all
banking organizations are reporting
RWAs consistent with the standardized
approach outlined in the 2013 revisions
to the regulatory capital rules. All HCs
that are subject to FR–Y9C filing
requirements would submit this revised
Schedule HC–R, Part II. Compared to
2 In addition, one of the commenters on the
proposal requested the collection of new
information unrelated to the scope of this proposal.
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the current schedule, the proposed
Schedule HC–R, Part II, would provide
a more detailed breakdown of onbalance sheet asset and off-balance sheet
item categories, remove the ratingsbased approach from the calculation of
risk-weighted assets, reflect reporting of
alternative risk-weighting approaches
not reliant on credit ratings, and include
an expanded number of risk-weight
categories, consistent with the revised
regulatory capital rules.
The final version of Schedule HC–R,
Part II, would be divided into the
following sections: (A) Balance sheet
asset categories; (B) on- and off-balancesheet securitization exposures; (C) total
balance sheet assets; (D) derivatives, offbalance sheet, and other items subject to
risk weighting; (E) totals; and (F)
memoranda. These distinct category
headings would-be added in order to
enhance the clarity of the reporting form
and do not affect the number of line
items banking organizations would be
required to complete.
One commenter noted that the
proposed reporting instructions refer the
reader to the Federal Reserve’s
regulatory capital rules for additional
information and requested that the
Federal Reserve incorporate the
information from the regulatory capital
rules into the reporting instructions.
The Federal Reserve will clarify the
cross-references to the regulatory capital
rules in the final reporting instructions.
However, the Federal Reserve believes
that incorporating the additional
information from the Board’s regulatory
capital rules into the reporting
instructions would unduly add
significant length to the instructions,
and condensing the information would
likely omit significant details.
One commenter requested the
addition of a separate line item for total
equity exposures, while another
commenter requested the addition of a
three-way breakout of equity exposures
to investment funds similar to that
found in the Regulatory Capital
Reporting for Institutions Subject to the
Advanced Capital Adequacy Framework
(FFIEC 101).3 The FFIEC 101 requires
institutions to report equity exposures
to investment funds by the methodology
used to risk weight these exposures. The
Federal Reserve believes that importing
the equity exposure reporting template
found in the FFIEC 101 into the FR Y–
9C Schedule HC–R, Part II, would add
complexity and undue burden for
smaller institutions required to
3 FFIEC
101—Regulatory Capital Reporting for
Institutions Subject to the Advanced Capital
Adequacy Framework: for the OCC, OMB No. 1557–
0239; for the Board, OMB No. 7100–0319; and for
the FDIC, OMB No. 3064–0159.
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complete the FR Y–9C. However,
because of the approaches available for
risk weighting investments in
investment funds (including mutual
funds), the Federal Reserve will add
data items for reporting the exposure
and risk-weighted asset amount of such
investments to the appropriate balance
sheet asset categories. The Federal
Reserve will add detailed guidance
related to equity exposure reporting in
the final instructions for Schedule HC–
R, Part II.
A brief description of the proposed
revisions and the comments received on
specific line items in Schedule HC–R,
Part II, is provided below.
A. Proposed Schedule HC–R, Part II,
Items 1–11: Balance Sheet Asset
Categories
Proposed line items 1 through 8
reflect balance sheet asset categories
(excluding those assets within each
category that meet the definition of a
securitization exposure), similar to the
asset categories included in the current
version of Schedule HC–R, Part II.
However, the proposed data items
would capture greater detail. The
number of risk-weight categories to
which the individual assets in each
asset category would be allocated would
be expanded consistent with the revised
regulatory capital rules. On-balance
sheet assets and off-balance sheet items
that meet the definition of a
securitization exposure would be
reported in items 9 and 10, respectively.
Two commenters noted that several
risk-weight categories for item 8, ‘‘Other
assets,’’ on the proposed reporting form
are not available for data input (i.e., the
categories are shaded out). However, the
commenters stated the categories may
be applicable, particularly to address
the exposures underlying separate
account bank-owned life insurance
(BOLI) assets. In response to these
comments, the Federal Reserve will add
data items to collect the exposure
amount and risk-weighted asset amount
of these BOLI assets, which would be
reported separately from the other risk
weightings within item 8, ‘‘Other
assets.’’ In addition, the Federal Reserve
will clarify the instructions to allow for
the reporting of 150 percent and 300
percent risk-weight categories for item
8, ‘‘Other assets.’’
One commenter requested
clarification of the reporting of default
fund contributions (DFCs) made by the
reporting banking organization to
qualifying central counterparties
(QCCPs) in item 8, ‘‘Other assets.’’ The
commenter noted that the proposed
reporting instructions for item 8 stated
that such contributions should be
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allocated to the risk-weight categories
defined for column B through column
Q. However, the commenter observed
that DFCs to QCCPs are subject to two
alternative methodologies (Methods 1
and 2) for calculating risk-weighted
assets, one of which may result in riskweightings not captured in column B
through column Q. In response to this
comment, the Federal Reserve will add
data items to collect the exposure
amount and risk-weighted asset amount
of DFCs to QCCPs, which would be
reported separately from the risk
weightings otherwise captured in item
8. The Federal Reserve will clarify the
instructions to describe how
respondents should report DFCs under
Method 1 as well as Method 2.
One commenter noted that items 2
through 8 could include securitization
exposures, and when added with item 9,
‘‘On-balance sheet securitization
exposures,’’ it would double count such
exposures in reporting item 11, ‘‘Total
assets.’’ The Federal Reserve notes that
the reporting instructions for each
proposed balance sheet asset category
(items 1 through 8) explicitly state that
the reporting banking organization must
exclude securitization exposures. The
Federal Reserve will clarify the
proposed reporting form to explicitly
state that these data items should
exclude securitization exposures from
items 2 through 8 and be reported in
item 9.4
The Federal Reserve notes that,
although the proposed reporting form
and instructions addressed the reporting
of an institution’s securitization
exposures and the treatment of financial
collateral, a subsequent review found
the proposal did not clearly articulate
the risk weighting and reporting of
assets and certain other items secured
by financial collateral in the form of
securitization exposures or mutual
funds. In addition, the proposed
reporting form and instructions did not
fully address the two approaches for
recognizing the effects of qualifying
financial collateral. The approaches for
risk weighting securitization exposures
and investments in mutual funds also
are applicable to such exposures when
they serve as financial collateral. To
account for the possible risk weight
outcomes when exposures are secured
by these types of collateral, the Federal
Reserve will add data items to columns
R and S for reporting the exposure
amount and risk-weighted asset amount
4 The Federal Reserve also will add a similar
clarification to the proposed reporting form
regarding derivatives and off-balance sheet items
that are securitization exposures by explicitly
stating that institutions should exclude them from
items 12 through 21 and report them in item 10.
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of these collateralized exposures
separately from the other risk
weightings within appropriate balance
sheet asset categories (and derivative
and off-balance sheet item categories).
B. Schedule HC–R, Part II, Items 12
Through 22: Derivatives, Off-Balance
Sheet, and Other Items Subject to Risk
Weighting
Proposed line items 12 through 22
pertain to the reporting of derivatives,
off-balance sheet, and other items
subject to risk weighting, excluding
those that meet the definition of a
securitization exposure (which are
reported in item 10).
One commenter noted that in
accordance with section 37 of the
Federal Reserve’s revised regulatory
capital rules, banking organizations
must calculate the exposure amount and
risk-weighted assets for repo-style
transactions on a netting set basis. A
netting set may contain transactions that
are reported as assets, liabilities, and
off-balance sheet items (as long as they
are executed under the same master
netting agreement), and the basis for the
risk-weighted assets calculation is the
net exposure, adjusted for volatility and
foreign exchange haircuts. As proposed,
Schedule HC–R, Part II, would have
split the reporting of repo-style
transactions between assets (reported in
item 3, ‘‘Federal funds sold and
securities purchased under agreements
to resell,’’ i.e., reverse repos) and
liabilities and off-balance sheet items
(reported in item 16, ‘‘Repo-style
transactions (excluding reverse repos)’’).
However, since risk-weighted assets for
repo-style transactions are based on the
net exposure at a netting set level
(inclusive of volatility and foreign
exchange haircuts), the method
proposed for allocating repo-style
transaction exposures between two
reporting items and across the riskweight categories in a way that would
tie back to the amounts required to be
reported in column A of Schedule RC–
R, Part II (i.e., for item 3, the balance
sheet carrying amount, and for item 16,
the notional value), does not align with
the treatment of repo-style transactions
under the revised regulatory capital
rules. The commenter recommended
that the Federal Reserve amend the
reporting form to collect all repo-style
transactions in a single item, and
amounts attributed to risk-weighting
categories for this item would tie to an
‘‘exposure’’ amount reported in Column
A.
In response to this comment, the
Federal Reserve will revise proposed
item 16 of Schedule HC–R, Part II, to
include all repo-style transactions in
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item 16, re-titled as ‘‘Repo-style
transactions,’’ which would also include
securities purchased under agreements
to resell (reverse repos) in order for
banking organizations to calculate their
exposure based on master netting set
agreements. In addition, the Federal
Reserve will split proposed item 3 of
Schedule HC–R, Part II, into item 3(a),
‘‘Federal funds sold (in domestic
offices),’’ and item 3(b), ‘‘Securities
purchased under agreements to resell.’’
However, after an institution reports the
balance sheet carrying amount of its
reverse repos in column A of item 3(b),
it would report this same amount as an
adjustment in column B of item 3(b),
resulting in no allocation of the balance
sheet carrying amount of reverse repos
across the risk-weight categories in item
3. This reporting methodology would
ensure that the sum of the balance sheet
asset amounts reported in items 1
through 9, column A, of Schedule HC–
R, Part II, that an institution would
report in item 11 of Schedule HC–R,
Part II, continues to equal the ‘‘Total
assets’’ reported in item 12 of the FR Y–
9C balance sheet (Schedule HC).
Another commenter noted that, under
the Federal Reserve’s revised regulatory
capital rules, a banking organization is
required to hold risk-based capital
against all repo-style transactions,
regardless of whether the transactions
generate on-balance sheet exposures.
The commenter also noted that the
proposed reporting instructions for
Schedule HC–R, Part II, state that
‘‘Although securities sold under
agreements to repurchase are reported
on the balance sheet (Schedule HC) as
liabilities, they are treated as off-balance
sheet items under the regulatory capital
rules.’’ The commenter then questioned
the intent of the Federal Reserve’s
proposed reporting form that would
require an institution to calculate a
capital charge for these ‘‘off-balance
sheet items’’ despite the fact that the
security pledged by the institution as
collateral for the repo remains on the
balance sheet for accounting purposes
and would therefore require a separate
on-balance sheet risk-weighting. The
Federal Reserve adopted this reporting
approach for consistency with the
revised regulatory capital rules, which
recognize that institutions face
counterparty credit risk when engaging
in repo-style transactions. However,
under certain conditions, the Federal
Reserve’s revised regulatory capital
rules also allow banking organizations
to recognize the risk mitigating effects of
financial collateral when risk weighting
their repo-style exposures. The final
reporting form and instructions for
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10485
Schedule HC–R, Part II, will implement
this treatment of repo-style transactions,
which is set forth in the revised
regulatory capital rules.
Although the proposed reporting form
and instructions addressed the reporting
of a banking organization’s unsettled
transactions as part of item 8, ‘‘All other
assets,’’ the Federal Reserve notes that
during a subsequent review of the
proposal it did not clearly address the
fact that a banking organization’s
unsettled transactions could potentially
be composed of both on- and off-balance
sheet exposures. In order to more clearly
assess risk-based capital against delayed
trades where the counterparty has failed
to deliver an instrument or make a
payment in a timely manner, the
Federal Reserve will modify Schedule
HC–R, Part II, by adding line item 22,
‘‘Unsettled transactions (failed trades).’’
C. Schedule HC–R, Part II, Items 23
Through 31: Totals
Proposed items 23 through 31 would
apply the risk-weight factors to the
exposure amounts reported for assets,
derivatives, and off-balance sheet items
in items 11 through 23 to calculate a
banking organization’s total riskweighted assets. The Federal Reserve
did not receive any comments on these
line items and will implement as
proposed.
D. Schedule HC–R, Part II, Memoranda
Items 1 Through 4: Memoranda
In proposed memoranda items 1
through 3, a banking organization would
report the current credit exposure and
notional principal amounts of its
derivative contracts. Memorandum item
4 would require those banking
organizations subject to the Market Risk
Rule to report the portion of their
standardized market risk weighted
assets (as reported in Schedule HC–R,
item 27) that is attributable to specific
risk.
Memorandum item 1 would continue
to collect the ‘‘Current credit exposure
across all derivative contracts covered
by the risk-based capital standards.’’
One commenter noted that, prior to the
proposed revisions, the instructions for
Memorandum item 1 stated that all
written option contracts (except those
that are, in substance, financial
guarantees) are not covered by the riskbased capital standards. The commenter
asked if this was an explicit change in
the reporting of written option
contracts. The Federal Reserve notes
that this exclusion was inadvertently
omitted from the proposed instructions
for Memorandum item 1 and will clarify
the instructions to note that written
option contracts will continue to be
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excluded from reporting in
Memorandum item 1, consistent with
the revised regulatory capital rules.
The Federal Reserve did not receive
any comments on memoranda items 2,
3 or 4, and will implement as proposed.
2. Proposed FR Y–9C, Schedule HC–L
FR Y–9C, Schedule HC–L collects
regulatory data on derivatives and offbalance sheet items. The Federal
Reserve proposed to revise the reporting
requirements for off-balance sheet
exposures related to securities lent and
borrowed, consistent with the revised
regulatory capital rules. Compared to
the current schedule, the proposed
changes to Schedule HC–L would
require all banking organizations to
report the amount of securities
borrowed. At present, banking
organizations include the amount of
securities borrowed in the total amount
of all other off-balance sheet liabilities
reported in item 9 of Schedule HC–L if
the amount of securities borrowed is
more than 10 percent of total holding
company equity capital and they
disclose the amount of securities
borrowed if that amount is more than 25
percent of total holding company equity
capital. In addition, the proposed
changes to Schedule HC–L would
require institutions to report securities
borrowed in a new item 6.b immediately
after the line item for securities lent,
which would be renumbered from item
6 to item 6.a.
One commenter noted that the current
instructions for item 9 state to ‘‘report
all securities borrowed against collateral
(other than cash)’’ for such purposes as
serving ‘‘as a pledge against deposit
liabilities or delivery against short
sales,’’ whereas the current instructions
for item 6 state to report all securities
owned that are ‘‘lent against collateral
or on an uncollateralized basis.’’ The
commenter characterizes current item 9
as inclusive of only certain types of
securities borrowings such as those
collateralized by ‘‘other than cash’’ and
those ‘‘for purposes as a pledge against
deposit liabilities or short sales,’’
whereas current item 6 covers all types
of securities lending regardless of the
type of collateral. The commenter
suggested clarifying the scope of these
two items.
The Federal Reserve will clarify the
instructions for new item 6(b) to state
that institutions should report all types
of securities borrowing, regardless of
collateral type or purpose. The phrases
‘‘other than cash’’ and ‘‘for such
purpose as a pledge against deposit
liabilities or delivery against short
sales’’ will be deleted from the final
instructions for new item 6(b).
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3. Initial Reporting
For the March 31, 2015, report date,
institutions may provide reasonable
estimates for any new or revised FR Y–
9C items initially required to be
reported as of that date for which the
requested information is not readily
available.
2. Report Title: Parent Company Only
Financial Statements for Small Holding
Companies.
Agency form number: FR Y–9SP.
OMB control number: 7100–0128.
Frequency: Semiannually, as of the
last calendar day of June and December.
Reporters: BHCs, SLHCs and SHCs
with total consolidated assets of less
than $1 billion (small BHCs, small
SLHCs and small SHCs).
Estimated average hours per response:
5.40 hours.
Estimated annual reporting hours:
47,412.
Number of respondents: 4,390.
General description of report: This
information collection is mandatory for
BHCs [12 U.S.C. 1844(c)(1)(A).]
Additionally, 12 U.S.C. 1467a(b)(2)(A)
and 1850a(c)(1)(A), respectively,
authorize the Federal Reserve to require
that SLHCs and supervised SHCs file
the FR Y–9SP with the Federal Reserve.
Confidential treatment is not routinely
given to the financial data in this report.
However, confidential treatment for the
reporting information, in whole or in
part, can be requested in accordance
with the instructions to the form,
pursuant to sections (b)(4), (b)(6), or
(b)(8) of the Freedom of Information Act
(5 U.S.C. 552(b)(4), (b)(6), and (b)(8)).
Abstract: The FR Y–9SP is a parent
company only financial statement filed
semiannually by smaller HCs.
Respondents include HCs with total
consolidated assets of less than $1
billion. This form is a simplified or
abbreviated version of the FR Y–9LP.
This report is designed to obtain basic
parent company balance sheet and
income data, data on intangible assets,
and data on intercompany transactions.
Current Actions: On August 6, 2014,
the Federal Reserve published a notice
in the Federal Register (79 FR 45808)
requesting public comment for 60 days
on the revision, without extension, of
the FR Y–9SP. The comment period for
this notice expired on October 6, 2014.
The Federal Reserve did not receive any
comments. However, in light of the
legislation adopted by Congress on
December 11, 2014, the Federal Reserve
will not finalize the proposed revisions
to FR Y–9SP Schedule SC–R, Part II, for
SLHCs that otherwise would have been
subject to the Small BHC Policy
Statement in effect as of the filing date
for the FR Y–9SP.
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Discussion of Recent Legislation and
Rulemaking Affecting Proposed
Revisions to the FR Y–9SP
In December 2014, Congress enacted
and the President signed into law Public
Law 113–250. Public Law 113–250
directs the Board to publish in the
Federal Register proposed revisions to
the Small Bank Holding Company
Policy Statement to, in part, exempt
small SLHCs from the minimum capital
requirements mandated by section 171
of the Dodd-Frank Wall Street Reform
and Consumer Protection Act as if they
were BHCs subject to the Small BHC
Policy Statement.
On January 29, 2015, the Board issued
an interim final rule that would exclude
SLHCs that have total consolidated
assets of less than $500 million and that
meet other qualitative requirements
from the Board’s regulatory capital
requirements (Regulation Q). In light of
Public Law 113–250 and the
rulemaking, the Federal Reserve will not
finalize the proposed revisions to the FR
Y–9SP, Part II, for SLHCs with total
consolidated assets of less than $500
million that meet the qualitative
requirements of the Policy Statement.
Board of Governors of the Federal Reserve
System, February 23, 2015.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2015–03973 Filed 2–25–15; 8:45 am]
BILLING CODE P
FEDERAL RESERVE SYSTEM
Change in Bank Control Notices;
Acquisitions of Shares of a Bank or
Bank Holding Company
The notificants listed below have
applied under the Change in Bank
Control Act (12 U.S.C. 1817(j)) and
§ 225.41 of the Board’s Regulation Y (12
CFR 225.41) to acquire shares of a bank
or bank holding company. The factors
that are considered in acting on the
notices are set forth in paragraph 7 of
the Act (12 U.S.C. 1817(j)(7)).
The notices are available for
immediate inspection at the Federal
Reserve Bank indicated. The notices
also will be available for inspection at
the offices of the Board of Governors.
Interested persons may express their
views in writing to the Reserve Bank
indicated for that notice or to the offices
of the Board of Governors. Comments
must be received not later than March
13, 2015.
A. Federal Reserve Bank of St. Louis
(Yvonne Sparks, Community
Development Officer) P.O. Box 442, St.
Louis, Missouri 63166–2034:
E:\FR\FM\26FEN1.SGM
26FEN1
Agencies
[Federal Register Volume 80, Number 38 (Thursday, February 26, 2015)]
[Notices]
[Pages 10483-10486]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-03973]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: Notice is hereby given of the final approval of proposed
information collections by the Board of Governors of the Federal
Reserve System (Board) under OMB delegated authority, as per 5 CFR
1320.16 (OMB Regulations on Controlling Paperwork Burdens on the
Public). Board-approved collections of information are incorporated
into the official OMB inventory of currently approved collections of
information. Copies of the Paperwork Reduction Act Submission,
supporting statements and approved collection of information
instrument(s) are placed into OMB's public docket files. The Federal
Reserve may not conduct or sponsor, and the respondent is not required
to respond to, an information collection that has been extended,
revised, or implemented on or after October 1, 1995, unless it displays
a currently valid OMB control number.
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Acting Clearance
Officer, Mark Tokarski, Office of the Chief Data Officer, Board of
Governors of the Federal Reserve System, Washington, DC 20551 (202)
452-3829. Telecommunications Device for the Deaf (TDD) users may
contact (202) 263-4869, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
OMB Desk Officer, Shagufta Ahmed, Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 10235, 725 17th Street NW.,Washington, DC 20503.
Final approval under OMB delegated authority of the revision,
without extension, of the following reports: \1\
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\1\ The family of FR Y-9 reporting forms also contains three
other mandatory reports, which are not being revised at this time:
The Parent Company Only Financial Statements for Large Holding
Companies (FR Y-9LP), The Financial Statements for Employee Stock
Ownership Plan Holding Companies (FR Y-9ES), and The Supplement to
the Consolidated Financial Statements for Holding Companies (FR Y-
9CS).
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1. Report title: Consolidated Financial Statements for Holding
Companies.
Agency form number: FR Y-9C.
OMB Control number: 7100-0128.
Frequency: Quarterly.
Reporters: Bank holding companies (BHCs), savings and loan holding
companies (SLHCs), and securities holding companies (SHCs)
(collectively, ``holding companies'' (HCs)).
Estimated annual reporting hours: 133,464 hours.
Estimated average hours per response: Non-advanced approaches HCs:
50.84 hours, and advanced approaches HCs: 52.09 hours.
Number of respondents: Non-advanced approaches HCs: 644, and
advanced approaches HCs: 12.
General description of report: This information collection is
mandatory for BHCs (12 U.S.C. 12 U.S.C. 1844(c)(1)(A)). Additionally,
12 U.S.C. 1467a(b)(2)(A) and 1850a(c)(1)(A), respectively, authorize
the Federal Reserve to require that SLHCs and supervised SHCs file the
FR Y-9C with the Federal Reserve. Confidential treatment is not
routinely given to the financial data in this report. However,
confidential treatment for the reporting information, in whole or in
part, can be requested in accordance with the instructions to the form,
pursuant to sections (b)(4), (b)(6), or (b)(8) of FOIA (5 U.S.C.
522(b)(4), (b)(6), and (b)(8)).
Abstract: The FR Y-9C consists of standardized financial statements
similar to the Federal Financial Institutions Examination Council
(FFIEC) Consolidated Reports of Condition and Income (Call Reports)
(FFIEC 031 & 041; OMB No. 7100-0036) filed by commercial banks. It
collects consolidated data from HCs and is filed quarterly by top-tier
HCs with total consolidated assets of $1 billion or more. (Under
certain circumstances defined in the General Instructions, BHCs under
$1 billion may be required to file the FR Y-9C.)
Current Actions: On August 6, 2014, the Federal Reserve published a
notice in the Federal Register (79 FR 45808) requesting public comment
for 60 days on the revision, without extension, of the FR Y-9C. The
comment period for this notice expired on October 6, 2014. The Federal
Reserve received three comment letters regarding proposed revisions to
the FR Y-9C from two banking organizations and one bankers'
association. In addition, three commenters submitted comments on the
proposed revisions to the Consolidated Reports of Condition and Income
(Call Reports) (FFIEC 031 & 041; OMB No. 7100-0036), which parallel
proposed revisions to the FR Y-9C. Because these changes to the Call
Report parallel the proposed revisions to the FR Y-9C, the Federal
Reserve also considered the comments on the Call Report in developing
the final notice. In summary, the commenters asked that the Federal
Reserve (1) clarify the applicability of the proposed reporting
requirements, (2) add additional items, (3) combine two items, (4)
provide additional risk-weight categories for some items, and (5)
clarify the instructions for certain line items.\2\
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\2\ In addition, one of the commenters on the proposal requested
the collection of new information unrelated to the scope of this
proposal.
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Detailed Discussion of Public Comments and Recommended Responses
1. Proposed FR Y-9C, Schedule HC-R, Part II
In the March 2015 proposal, Schedule HC-R, Part II--the portion of
the Y-9C that risk-weighted assets (RWAs)--would be modified to ensure
that all banking organizations are reporting RWAs consistent with the
standardized approach outlined in the 2013 revisions to the regulatory
capital rules. All HCs that are subject to FR-Y9C filing requirements
would submit this revised Schedule HC-R, Part II. Compared to
[[Page 10484]]
the current schedule, the proposed Schedule HC-R, Part II, would
provide a more detailed breakdown of on-balance sheet asset and off-
balance sheet item categories, remove the ratings-based approach from
the calculation of risk-weighted assets, reflect reporting of
alternative risk-weighting approaches not reliant on credit ratings,
and include an expanded number of risk-weight categories, consistent
with the revised regulatory capital rules.
The final version of Schedule HC-R, Part II, would be divided into
the following sections: (A) Balance sheet asset categories; (B) on- and
off-balance-sheet securitization exposures; (C) total balance sheet
assets; (D) derivatives, off-balance sheet, and other items subject to
risk weighting; (E) totals; and (F) memoranda. These distinct category
headings would-be added in order to enhance the clarity of the
reporting form and do not affect the number of line items banking
organizations would be required to complete.
One commenter noted that the proposed reporting instructions refer
the reader to the Federal Reserve's regulatory capital rules for
additional information and requested that the Federal Reserve
incorporate the information from the regulatory capital rules into the
reporting instructions. The Federal Reserve will clarify the cross-
references to the regulatory capital rules in the final reporting
instructions. However, the Federal Reserve believes that incorporating
the additional information from the Board's regulatory capital rules
into the reporting instructions would unduly add significant length to
the instructions, and condensing the information would likely omit
significant details.
One commenter requested the addition of a separate line item for
total equity exposures, while another commenter requested the addition
of a three-way breakout of equity exposures to investment funds similar
to that found in the Regulatory Capital Reporting for Institutions
Subject to the Advanced Capital Adequacy Framework (FFIEC 101).\3\ The
FFIEC 101 requires institutions to report equity exposures to
investment funds by the methodology used to risk weight these
exposures. The Federal Reserve believes that importing the equity
exposure reporting template found in the FFIEC 101 into the FR Y-9C
Schedule HC-R, Part II, would add complexity and undue burden for
smaller institutions required to complete the FR Y-9C. However, because
of the approaches available for risk weighting investments in
investment funds (including mutual funds), the Federal Reserve will add
data items for reporting the exposure and risk-weighted asset amount of
such investments to the appropriate balance sheet asset categories. The
Federal Reserve will add detailed guidance related to equity exposure
reporting in the final instructions for Schedule HC-R, Part II.
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\3\ FFIEC 101--Regulatory Capital Reporting for Institutions
Subject to the Advanced Capital Adequacy Framework: for the OCC, OMB
No. 1557-0239; for the Board, OMB No. 7100-0319; and for the FDIC,
OMB No. 3064-0159.
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A brief description of the proposed revisions and the comments
received on specific line items in Schedule HC-R, Part II, is provided
below.
A. Proposed Schedule HC-R, Part II, Items 1-11: Balance Sheet Asset
Categories
Proposed line items 1 through 8 reflect balance sheet asset
categories (excluding those assets within each category that meet the
definition of a securitization exposure), similar to the asset
categories included in the current version of Schedule HC-R, Part II.
However, the proposed data items would capture greater detail. The
number of risk-weight categories to which the individual assets in each
asset category would be allocated would be expanded consistent with the
revised regulatory capital rules. On-balance sheet assets and off-
balance sheet items that meet the definition of a securitization
exposure would be reported in items 9 and 10, respectively.
Two commenters noted that several risk-weight categories for item
8, ``Other assets,'' on the proposed reporting form are not available
for data input (i.e., the categories are shaded out). However, the
commenters stated the categories may be applicable, particularly to
address the exposures underlying separate account bank-owned life
insurance (BOLI) assets. In response to these comments, the Federal
Reserve will add data items to collect the exposure amount and risk-
weighted asset amount of these BOLI assets, which would be reported
separately from the other risk weightings within item 8, ``Other
assets.'' In addition, the Federal Reserve will clarify the
instructions to allow for the reporting of 150 percent and 300 percent
risk-weight categories for item 8, ``Other assets.''
One commenter requested clarification of the reporting of default
fund contributions (DFCs) made by the reporting banking organization to
qualifying central counterparties (QCCPs) in item 8, ``Other assets.''
The commenter noted that the proposed reporting instructions for item 8
stated that such contributions should be allocated to the risk-weight
categories defined for column B through column Q. However, the
commenter observed that DFCs to QCCPs are subject to two alternative
methodologies (Methods 1 and 2) for calculating risk-weighted assets,
one of which may result in risk-weightings not captured in column B
through column Q. In response to this comment, the Federal Reserve will
add data items to collect the exposure amount and risk-weighted asset
amount of DFCs to QCCPs, which would be reported separately from the
risk weightings otherwise captured in item 8. The Federal Reserve will
clarify the instructions to describe how respondents should report DFCs
under Method 1 as well as Method 2.
One commenter noted that items 2 through 8 could include
securitization exposures, and when added with item 9, ``On-balance
sheet securitization exposures,'' it would double count such exposures
in reporting item 11, ``Total assets.'' The Federal Reserve notes that
the reporting instructions for each proposed balance sheet asset
category (items 1 through 8) explicitly state that the reporting
banking organization must exclude securitization exposures. The Federal
Reserve will clarify the proposed reporting form to explicitly state
that these data items should exclude securitization exposures from
items 2 through 8 and be reported in item 9.\4\
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\4\ The Federal Reserve also will add a similar clarification to
the proposed reporting form regarding derivatives and off-balance
sheet items that are securitization exposures by explicitly stating
that institutions should exclude them from items 12 through 21 and
report them in item 10.
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The Federal Reserve notes that, although the proposed reporting
form and instructions addressed the reporting of an institution's
securitization exposures and the treatment of financial collateral, a
subsequent review found the proposal did not clearly articulate the
risk weighting and reporting of assets and certain other items secured
by financial collateral in the form of securitization exposures or
mutual funds. In addition, the proposed reporting form and instructions
did not fully address the two approaches for recognizing the effects of
qualifying financial collateral. The approaches for risk weighting
securitization exposures and investments in mutual funds also are
applicable to such exposures when they serve as financial collateral.
To account for the possible risk weight outcomes when exposures are
secured by these types of collateral, the Federal Reserve will add data
items to columns R and S for reporting the exposure amount and risk-
weighted asset amount
[[Page 10485]]
of these collateralized exposures separately from the other risk
weightings within appropriate balance sheet asset categories (and
derivative and off-balance sheet item categories).
B. Schedule HC-R, Part II, Items 12 Through 22: Derivatives, Off-
Balance Sheet, and Other Items Subject to Risk Weighting
Proposed line items 12 through 22 pertain to the reporting of
derivatives, off-balance sheet, and other items subject to risk
weighting, excluding those that meet the definition of a securitization
exposure (which are reported in item 10).
One commenter noted that in accordance with section 37 of the
Federal Reserve's revised regulatory capital rules, banking
organizations must calculate the exposure amount and risk-weighted
assets for repo-style transactions on a netting set basis. A netting
set may contain transactions that are reported as assets, liabilities,
and off-balance sheet items (as long as they are executed under the
same master netting agreement), and the basis for the risk-weighted
assets calculation is the net exposure, adjusted for volatility and
foreign exchange haircuts. As proposed, Schedule HC-R, Part II, would
have split the reporting of repo-style transactions between assets
(reported in item 3, ``Federal funds sold and securities purchased
under agreements to resell,'' i.e., reverse repos) and liabilities and
off-balance sheet items (reported in item 16, ``Repo-style transactions
(excluding reverse repos)''). However, since risk-weighted assets for
repo-style transactions are based on the net exposure at a netting set
level (inclusive of volatility and foreign exchange haircuts), the
method proposed for allocating repo-style transaction exposures between
two reporting items and across the risk-weight categories in a way that
would tie back to the amounts required to be reported in column A of
Schedule RC-R, Part II (i.e., for item 3, the balance sheet carrying
amount, and for item 16, the notional value), does not align with the
treatment of repo-style transactions under the revised regulatory
capital rules. The commenter recommended that the Federal Reserve amend
the reporting form to collect all repo-style transactions in a single
item, and amounts attributed to risk-weighting categories for this item
would tie to an ``exposure'' amount reported in Column A.
In response to this comment, the Federal Reserve will revise
proposed item 16 of Schedule HC-R, Part II, to include all repo-style
transactions in item 16, re-titled as ``Repo-style transactions,''
which would also include securities purchased under agreements to
resell (reverse repos) in order for banking organizations to calculate
their exposure based on master netting set agreements. In addition, the
Federal Reserve will split proposed item 3 of Schedule HC-R, Part II,
into item 3(a), ``Federal funds sold (in domestic offices),'' and item
3(b), ``Securities purchased under agreements to resell.'' However,
after an institution reports the balance sheet carrying amount of its
reverse repos in column A of item 3(b), it would report this same
amount as an adjustment in column B of item 3(b), resulting in no
allocation of the balance sheet carrying amount of reverse repos across
the risk-weight categories in item 3. This reporting methodology would
ensure that the sum of the balance sheet asset amounts reported in
items 1 through 9, column A, of Schedule HC-R, Part II, that an
institution would report in item 11 of Schedule HC-R, Part II,
continues to equal the ``Total assets'' reported in item 12 of the FR
Y-9C balance sheet (Schedule HC).
Another commenter noted that, under the Federal Reserve's revised
regulatory capital rules, a banking organization is required to hold
risk-based capital against all repo-style transactions, regardless of
whether the transactions generate on-balance sheet exposures. The
commenter also noted that the proposed reporting instructions for
Schedule HC-R, Part II, state that ``Although securities sold under
agreements to repurchase are reported on the balance sheet (Schedule
HC) as liabilities, they are treated as off-balance sheet items under
the regulatory capital rules.'' The commenter then questioned the
intent of the Federal Reserve's proposed reporting form that would
require an institution to calculate a capital charge for these ``off-
balance sheet items'' despite the fact that the security pledged by the
institution as collateral for the repo remains on the balance sheet for
accounting purposes and would therefore require a separate on-balance
sheet risk-weighting. The Federal Reserve adopted this reporting
approach for consistency with the revised regulatory capital rules,
which recognize that institutions face counterparty credit risk when
engaging in repo-style transactions. However, under certain conditions,
the Federal Reserve's revised regulatory capital rules also allow
banking organizations to recognize the risk mitigating effects of
financial collateral when risk weighting their repo-style exposures.
The final reporting form and instructions for Schedule HC-R, Part II,
will implement this treatment of repo-style transactions, which is set
forth in the revised regulatory capital rules.
Although the proposed reporting form and instructions addressed the
reporting of a banking organization's unsettled transactions as part of
item 8, ``All other assets,'' the Federal Reserve notes that during a
subsequent review of the proposal it did not clearly address the fact
that a banking organization's unsettled transactions could potentially
be composed of both on- and off-balance sheet exposures. In order to
more clearly assess risk-based capital against delayed trades where the
counterparty has failed to deliver an instrument or make a payment in a
timely manner, the Federal Reserve will modify Schedule HC-R, Part II,
by adding line item 22, ``Unsettled transactions (failed trades).''
C. Schedule HC-R, Part II, Items 23 Through 31: Totals
Proposed items 23 through 31 would apply the risk-weight factors to
the exposure amounts reported for assets, derivatives, and off-balance
sheet items in items 11 through 23 to calculate a banking
organization's total risk-weighted assets. The Federal Reserve did not
receive any comments on these line items and will implement as
proposed.
D. Schedule HC-R, Part II, Memoranda Items 1 Through 4: Memoranda
In proposed memoranda items 1 through 3, a banking organization
would report the current credit exposure and notional principal amounts
of its derivative contracts. Memorandum item 4 would require those
banking organizations subject to the Market Risk Rule to report the
portion of their standardized market risk weighted assets (as reported
in Schedule HC-R, item 27) that is attributable to specific risk.
Memorandum item 1 would continue to collect the ``Current credit
exposure across all derivative contracts covered by the risk-based
capital standards.'' One commenter noted that, prior to the proposed
revisions, the instructions for Memorandum item 1 stated that all
written option contracts (except those that are, in substance,
financial guarantees) are not covered by the risk-based capital
standards. The commenter asked if this was an explicit change in the
reporting of written option contracts. The Federal Reserve notes that
this exclusion was inadvertently omitted from the proposed instructions
for Memorandum item 1 and will clarify the instructions to note that
written option contracts will continue to be
[[Page 10486]]
excluded from reporting in Memorandum item 1, consistent with the
revised regulatory capital rules.
The Federal Reserve did not receive any comments on memoranda items
2, 3 or 4, and will implement as proposed.
2. Proposed FR Y-9C, Schedule HC-L
FR Y-9C, Schedule HC-L collects regulatory data on derivatives and
off-balance sheet items. The Federal Reserve proposed to revise the
reporting requirements for off-balance sheet exposures related to
securities lent and borrowed, consistent with the revised regulatory
capital rules. Compared to the current schedule, the proposed changes
to Schedule HC-L would require all banking organizations to report the
amount of securities borrowed. At present, banking organizations
include the amount of securities borrowed in the total amount of all
other off-balance sheet liabilities reported in item 9 of Schedule HC-L
if the amount of securities borrowed is more than 10 percent of total
holding company equity capital and they disclose the amount of
securities borrowed if that amount is more than 25 percent of total
holding company equity capital. In addition, the proposed changes to
Schedule HC-L would require institutions to report securities borrowed
in a new item 6.b immediately after the line item for securities lent,
which would be renumbered from item 6 to item 6.a.
One commenter noted that the current instructions for item 9 state
to ``report all securities borrowed against collateral (other than
cash)'' for such purposes as serving ``as a pledge against deposit
liabilities or delivery against short sales,'' whereas the current
instructions for item 6 state to report all securities owned that are
``lent against collateral or on an uncollateralized basis.'' The
commenter characterizes current item 9 as inclusive of only certain
types of securities borrowings such as those collateralized by ``other
than cash'' and those ``for purposes as a pledge against deposit
liabilities or short sales,'' whereas current item 6 covers all types
of securities lending regardless of the type of collateral. The
commenter suggested clarifying the scope of these two items.
The Federal Reserve will clarify the instructions for new item 6(b)
to state that institutions should report all types of securities
borrowing, regardless of collateral type or purpose. The phrases
``other than cash'' and ``for such purpose as a pledge against deposit
liabilities or delivery against short sales'' will be deleted from the
final instructions for new item 6(b).
3. Initial Reporting
For the March 31, 2015, report date, institutions may provide
reasonable estimates for any new or revised FR Y-9C items initially
required to be reported as of that date for which the requested
information is not readily available.
2. Report Title: Parent Company Only Financial Statements for Small
Holding Companies.
Agency form number: FR Y-9SP.
OMB control number: 7100-0128.
Frequency: Semiannually, as of the last calendar day of June and
December.
Reporters: BHCs, SLHCs and SHCs with total consolidated assets of
less than $1 billion (small BHCs, small SLHCs and small SHCs).
Estimated average hours per response: 5.40 hours.
Estimated annual reporting hours: 47,412.
Number of respondents: 4,390.
General description of report: This information collection is
mandatory for BHCs [12 U.S.C. 1844(c)(1)(A).] Additionally, 12 U.S.C.
1467a(b)(2)(A) and 1850a(c)(1)(A), respectively, authorize the Federal
Reserve to require that SLHCs and supervised SHCs file the FR Y-9SP
with the Federal Reserve. Confidential treatment is not routinely given
to the financial data in this report. However, confidential treatment
for the reporting information, in whole or in part, can be requested in
accordance with the instructions to the form, pursuant to sections
(b)(4), (b)(6), or (b)(8) of the Freedom of Information Act (5 U.S.C.
552(b)(4), (b)(6), and (b)(8)).
Abstract: The FR Y-9SP is a parent company only financial statement
filed semiannually by smaller HCs. Respondents include HCs with total
consolidated assets of less than $1 billion. This form is a simplified
or abbreviated version of the FR Y-9LP. This report is designed to
obtain basic parent company balance sheet and income data, data on
intangible assets, and data on intercompany transactions.
Current Actions: On August 6, 2014, the Federal Reserve published a
notice in the Federal Register (79 FR 45808) requesting public comment
for 60 days on the revision, without extension, of the FR Y-9SP. The
comment period for this notice expired on October 6, 2014. The Federal
Reserve did not receive any comments. However, in light of the
legislation adopted by Congress on December 11, 2014, the Federal
Reserve will not finalize the proposed revisions to FR Y-9SP Schedule
SC-R, Part II, for SLHCs that otherwise would have been subject to the
Small BHC Policy Statement in effect as of the filing date for the FR
Y-9SP.
Discussion of Recent Legislation and Rulemaking Affecting Proposed
Revisions to the FR Y-9SP
In December 2014, Congress enacted and the President signed into
law Public Law 113-250. Public Law 113-250 directs the Board to publish
in the Federal Register proposed revisions to the Small Bank Holding
Company Policy Statement to, in part, exempt small SLHCs from the
minimum capital requirements mandated by section 171 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act as if they were BHCs
subject to the Small BHC Policy Statement.
On January 29, 2015, the Board issued an interim final rule that
would exclude SLHCs that have total consolidated assets of less than
$500 million and that meet other qualitative requirements from the
Board's regulatory capital requirements (Regulation Q). In light of
Public Law 113-250 and the rulemaking, the Federal Reserve will not
finalize the proposed revisions to the FR Y-9SP, Part II, for SLHCs
with total consolidated assets of less than $500 million that meet the
qualitative requirements of the Policy Statement.
Board of Governors of the Federal Reserve System, February 23,
2015.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2015-03973 Filed 2-25-15; 8:45 am]
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