Proposed Agency Information Collection Activities; Comment Request, 30459-30461 [2015-12738]
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Federal Register / Vol. 80, No. 102 / Thursday, May 28, 2015 / Notices
Form Number: FCC Form 333.
Type of Review: Revision of a
currently approved collection.
Respondents: Business or other forprofit entities; State, local or Tribal
Government.
Number of Respondents and
Responses: 776 respondents and 776
responses.
Estimated Time per Response: 7
hours.
Frequency of Response: Annual
reporting requirement.
Total Annual Burden: 5,432 hours.
Total Annual Cost: None.
Obligation to Respond: Mandatory.
The statutory authority for this
information collection is in Sections 4(i)
and 623(k) of the Communications Act
of 1934, as amended.
Nature and Extent of Confidentiality:
If individual respondents to this survey
wish to request confidential treatment of
any data provided in connection with
this survey, they can do so upon written
request, in accordance with Sections
0.457 and 0.459 of the Commission’s
rules. To request confidential treatment
of their data, respondents must describe
the specific information they wish to
protect and provide an explanation of
why such confidential treatment is
appropriate. If a respondent submits a
request for confidentiality, the
Commission will review it and make a
determination.
Privacy Impact Assessment: No
impact(s).
Needs and Uses: The Cable Television
Consumer Protection and Competition
Act of 1992 (‘‘Cable Act’’) requires the
Commission to publish annually a
report on average rates for basic cable
service, cable programming service, and
equipment. The report must compare
the prices charged by cable operators
subject to effective competition and
those that are not subject to effective
competition. The Annual Cable Industry
Price Survey is intended to collect the
data needed to prepare that report. The
data from these questions are needed to
complete this report.
Federal Communications Commission.
Marlene H. Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2015–12895 Filed 5–27–15; 8:45 am]
asabaliauskas on DSK5VPTVN1PROD with NOTICES
BILLING CODE 6712–01–P
FEDERAL MARITIME COMMISSION
Notice of Agreements Filed
The Commission hereby gives notice
of the filing of the following agreements
under the Shipping Act of 1984.
Interested parties may submit comments
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18:18 May 27, 2015
Jkt 235001
on the agreements to the Secretary,
Federal Maritime Commission,
Washington, DC 20573, within twelve
days of the date this notice appears in
the Federal Register. Copies of the
agreements are available through the
Commission’s Web site (www.fmc.gov)
or by contacting the Office of
Agreements at (202) 523–5793 or
tradeanalysis@fmc.gov.
Agreement No.: 011539–019.
Title: HLAG/NYK/MSC Vessel
Sharing Agreement.
Parties: Companhia Libra de
Navegacao; Comania Libra de
Navegacion Uruguay S.A.; Hapag-Lloyd
AG; Nippon Yusen Kaisha; and MSC
Mediterranean Shipping Company SA.
Filing Party: Wayne R. Rohde, Esq.;
Cozen O’Connor, 1627 I Street NW.;
Washington, DC 20006.
Synopsis: The Amendment would add
MSC as a party to the agreement and
change the vessel provision and space
allocation accordingly. It would also
revise the duration of the agreement,
restate the agreement, and make other
corresponding changes.
Agreement No.: 012334.
Title: Hyundai Glovis/Hoegh
Transpacific Westbound Space Charter
Agreement.
Parties: Hoegh Autoliners AS and
Hyundai Glovis Co. Ltd.
Filing Party: Wayne R. Rohde, Esq.;
Cozen O’Conner; 1627 I Street NW.,
Suite 1100; Washington, DC 20006–
4007.
Synopsis: The agreement authorizes
the parties to charter space to one
another for the transport of vehicles
from the U.S. West Coast to China and
Japan.
Agreement No.: 012335.
Title: Gulf Coast/ECSA Vessel Sharing
Agreement.
Parties: Hamburg Sudamerikanische
Dampfschifffahrts-Gesellschaft KG;
Alianca Navegacao e Logistica Ltda. e
CIA; MSC Mediterranean Shipping
Company.
Filing Party: Wayne R. Rohde, Esq.;
Cozen O’Conner; 1627 I Street NW.,
Suite 1100; Washington, DC 20006–
4007.
Synopsis: The agreement would
authorize the parties to operate a service
in the trade between the U.S. Gulf Coast
on the one hand, and Panama,
Colombia, Brazil, and Mexico on the
other hand. The parties have requested
expedited review.
Agreement No.: 012336.
Title: Zim/OOCL Space Charter
Agreement.
Parties: Zim Integrated Shipping
Service Limited and Orient Overseas
Container Line Limited.
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Fmt 4703
Sfmt 4703
30459
Filing Party: Wayne R. Rohde, Esq.;
Cozen O’Conner; 1627 I Street NW.,
Suite 1100; Washington, DC 20006–
4007.
Synopsis: The agreement authorizes
Zim to charter space to OOCL in the
trade between China, Vietnam,
Singapore, and Sri Lanka on the one
hand and the U.S. Atlantic Coast on the
other hand.
By Order of the Federal Maritime
Commission.
Dated: May 22, 2015.
Karen V. Gregory,
Secretary.
[FR Doc. 2015–12915 Filed 5–27–15; 8:45 am]
BILLING CODE 6730–01–P
FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
Board of Governors of the
Federal Reserve System.
SUMMARY: On June 15, 1984, the Office
of Management and Budget (OMB)
delegated to the Board of Governors of
the Federal Reserve System (Board) its
approval authority under the Paperwork
Reduction Act (PRA), to approve of and
assign OMB control numbers to
collection of information requests and
requirements conducted or sponsored
by the Board. Board-approved
collections of information are
incorporated into the official OMB
inventory of currently approved
collections of information. Copies of the
PRA Submission, supporting statements
and approved collection of information
instruments 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.
DATES: Comments must be submitted on
or before July 27, 2015.
ADDRESSES: You may submit comments,
identified by FR 4199, by any of the
following methods:
• Agency Web site: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: regs.comments@
federalreserve.gov. Include OMB
AGENCY:
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30460
Federal Register / Vol. 80, No. 102 / Thursday, May 28, 2015 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
number in the subject line of the
message.
• FAX: (202) 452–3819 or (202) 452–
3102.
• Mail: Robert deV. Frierson,
Secretary, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at https://
www.federalreserve.gov/apps/foia/
proposedregs.aspx as submitted, unless
modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper form in Room 3515, 1801 K Street
(between 18th and 19th Streets NW.)
Washington, DC 20006 between 9:00
a.m. and 5:00 p.m. on weekdays.
Additionally, commenters may send a
copy of their comments to the 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 or by fax to (202) 395–6974.
FOR FURTHER INFORMATION CONTACT: A
copy of the PRA OMB submission,
including the proposed reporting form
and instructions, supporting statement,
and other documentation will be placed
into OMB’s public docket files, once
approved. These documents will also be
made available on the Federal Reserve
Board’s public Web site at: https://
www.federalreserve.gov/apps/
reportforms/review.aspx or may be
requested from the agency clearance
officer, whose name appears below.
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.
SUPPLEMENTARY INFORMATION:
Request for Comment on Information
Collection Proposal
The following information collection,
which is being handled under this
delegated authority, has received initial
Board approval and is hereby published
for comment. At the end of the comment
period, the proposed information
collection, along with an analysis of
comments and recommendations
received, will be submitted to the Board
for final approval under OMB delegated
authority. Comments are invited on the
following:
VerDate Sep<11>2014
18:18 May 27, 2015
Jkt 235001
a. Whether the proposed collection of
information is necessary for the proper
performance of the Federal Reserve’s
functions; including whether the
information has practical utility;
b. The accuracy of the Federal
Reserve’s estimate of the burden of the
proposed information collection,
including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected;
d. Ways to minimize the burden of
information 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.
Proposal To Approve Under OMB
Delegated Authority the Extension for
Three Years, Without Revision, of the
Following Report
Report title: Basel II Interagency Pillar
2 Supervisory Guidance.
Agency form number: FR 4199.
OMB control number: 7100–0320.
Frequency: Annual.
Reporters: State member banks, bank
holding companies (BHCs).
Estimated annual reporting hours:
5,460.
Estimated average hours per response:
420.
Number of respondents: 13.
General description of report: The
Board’s Legal Division has determined
that the FR 4199 is authorized by
section 9(6) of the Federal Reserve Act
and section 5 of the Bank Holding
Company Act. Section 9(6) of the
Federal Reserve Act requires state
member banks to ‘‘comply with the
reserve and capital requirements of this
chapter’’ and to make reports of
condition ‘‘in such form’’ and
‘‘contain[ing] such information’’ as the
Board may require (12 U.S.C. 324).
Section 5 of the Bank Holding Company
Act authorizes the Board to ‘‘issue
regulations and orders relating to the
capital requirement for bank holding
companies’’ and requires BHCs to ‘‘keep
the Board informed as to [their]
financial condition, systems for
monitoring and controlling financial
and operating risks . . .’’ (12 U.S.C.
1844 (b) & (c)). Because the
recordkeeping requirements are
contained within guidance (and not a
statute or regulation), they are
voluntary. Because the FR 4199
recordkeeping requirements require that
banks and BHCs retain their own
records, the Freedom of Information Act
PO 00000
Frm 00030
Fmt 4703
Sfmt 4703
(FOIA) would only be implicated if the
Federal Reserve’s examiners retained a
copy of the records as part of an
examination or supervision of a bank or
BHC. However, records obtained as a
part of an examination or supervision of
a bank or BHC are exempt from
disclosure under FOIA exemption (b)(8),
for examination material (5 U.S.C.
552(b)(8)). In addition, the records may
also be exempt under (b)(4), which
exempts from disclosure ‘‘trade secrets
and commercial or financial information
obtained from a person and privileged
or confidential,’’ and under (b)(6) for
non-public personal information
regarding owners, shareholders,
directors, officers or employees if the
disclosure would ‘‘constitute a clearly
unwarranted invasion of personal
privacy’’ (5 U.S.C. 552(b)(4) and (b)(6)).
Abstract: The advanced approaches
framework requires certain banks and
BHCs to use an internal ratings-based
approach to calculate regulatory credit
risk capital requirements and advance
measurement approaches to calculate
regulatory operational risk capital
requirements, and to meet the higher of
the minimum requirements under the
general risk-based capital rules and the
minimum requirements under the
advanced approaches framework.
A bank is required to comply with the
advanced approaches framework if it
meets either of two independent
threshold criteria: (1) Consolidated total
assets of $250 billion or more, as
reported on the most recent year-end
regulatory reports; or (2) consolidated
total on-balance sheet foreign exposure
of $10 billion or more at the most recent
year-end.
A BHC is required to comply with the
advanced approaches framework if the
BHC has (1) consolidated total assets
(excluding assets held by an insurance
underwriting subsidiary) of $250 billion
or more, as reported on the most recent
year-end regulatory reports; (2)
consolidated total on-balance sheet
foreign exposure of $10 billion or more
at the most recent year-end; or (3) a
subsidiary depository institution (DI)
that is meets the criteria to be subject to
the advanced approaches rule, or elects
to adopt the advanced approaches. As of
September 30, 2014, 13 BHCs meet the
above criteria and are therefore subject
to the advanced approaches rule.1
Also, some banks or BHCs may
voluntarily decide to adopt the
advanced approaches framework. Both
1 Regulation YY permits a bank holding company
that is a subsidiary of a foreign banking
organization to elect not to comply with the
advanced approaches rule prior to formation of an
IHC with the prior approval of the Board. 12 CFR
252.153(e)(2)(C).
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Federal Register / Vol. 80, No. 102 / Thursday, May 28, 2015 / Notices
mandatory and voluntary respondents
are required to meet certain
qualification requirements before they
can use the advanced approaches
framework for risk-based capital
purposes.
The Pillar 2 Guidance sets the
expectation that respondents maintain
certain documentation as described in
paragraphs 37, 41, 43, and 46 of this
portion of the guidance. Details of the
expectations for each section are
provided below.
Setting and Assessing Capital Adequacy
Goals That Relate to Risk
Paragraph 37. In analyzing capital
adequacy, a banking organization
should evaluate the capacity of its
capital to absorb losses. Because various
definitions of capital are used within
the banking industry, each banking
organization should state clearly the
definition of capital used in any aspect
of its internal capital adequacy
assessment process (ICAAP).2 Since
components of capital are not
necessarily alike and have varying
capacities to absorb losses, a banking
organization should be able to
demonstrate the relationship between
its internal capital definition and its
assessment of capital adequacy. If a
banking organization’s definition of
capital differs from the regulatory
definition, the banking organization
should reconcile such differences and
provide an analysis to support the
inclusion of any capital instruments that
are not recognized under the regulatory
definition. Although common equity is
generally the predominant component
of a banking organization’s capital
structure, a banking organization may be
able to support the inclusion of other
capital instruments in its internal
definition of capital if it can
demonstrate a similar capacity to absorb
losses. The banking organization should
document any changes in its internal
definition of capital, and the reason for
those changes.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Ensuring Integrity of Internal Capital
Adequacy Assessments
Paragraph 41. A banking organization
should maintain thorough
documentation of its ICAAP to ensure
transparency. At a minimum, this
2 A bank holding company with total
consolidated assets of $50 billion or more is
required to develop and maintain a capital plan,
which must set forth a capital adequacy process. 76
FR 74631 (December 1, 2011). ICAAP would
constitute an internal capital adequacy process for
purposes of the final rule, and bank holding
companies that have a satisfactory ICAAP generally
would be considered to have a satisfactory internal
capital adequacy process for purposes of the final
rule.
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18:18 May 27, 2015
Jkt 235001
should include a description of the
banking organization’s overall capitalmanagement process, including the
committees and individuals responsible
for the ICAAP; the frequency and
distribution of ICAAP-related reporting;
and the procedures for the periodic
evaluation of the appropriateness and
adequacy of the ICAAP. In addition,
where applicable, ICAAP
documentation should demonstrate the
banking organization’s sound use of
quantitative methods (including model
selection and limitations) and dataselection techniques, as well as
appropriate maintenance, controls, and
validation. A banking organization
should document and explain the role
of third-party and vendor products,
services and information—including
methodologies, model inputs, systems,
data, and ratings—and the extent to
which they are used within the ICAAP.
A banking organization should have a
process to regularly evaluate the
performance of third-party and vendor
products, services and information. As
part of the ICAAP documentation, a
banking organization should document
the assumptions, methods, data,
information, and judgment used in its
quantitative and qualitative approaches.
Paragraph 43. The board of directors
and senior management have certain
responsibilities in developing,
implementing, and overseeing the
ICAAP. The board should approve the
ICAAP and its components. The board
or its appropriately delegated agent
should review the ICAAP and its
components on a regular basis, and
approve any revisions. That review
should encompass the effectiveness of
the ICAAP, the appropriateness of risk
tolerance levels and capital planning,
and the strength of control
infrastructures. Senior management
should continually ensure that the
ICAAP is functioning effectively and as
intended, under a formal review policy
that is explicit and well documented.
Additionally, a banking organization’s
internal audit function should play a
key role in reviewing the controls and
governance surrounding the ICAAP on
an ongoing basis.
Paragraph 46. As part of the ICAAP,
the board or its delegated agent, as well
as appropriate senior management,
should periodically review the resulting
assessment of overall capital adequacy.
This review, which should occur at least
annually, should include an analysis of
how measures of internal capital
adequacy compare with other capital
measures (such as regulatory,
accounting-based or marketdetermined). Upon completion of this
review, the board or its delegated agent
PO 00000
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Fmt 4703
Sfmt 4703
30461
should determine that, consistent with
safety and soundness, the banking
organization’s capital takes into account
all material risks and is appropriate for
its risk profile. However, in the event a
capital deficiency is uncovered (that is,
if capital is not consistent with the
banking organization’s risk profile or
risk tolerance) management should
consult and adhere to formal procedures
to correct the capital deficiency.
Board of Governors of the Federal Reserve
System, May 21, 2015.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2015–12738 Filed 5–27–15; 8:45 am]
BILLING CODE 6210–01–P
GENERAL SERVICES
ADMINISTRATION
[Notice-2015–QVO–01; Docket No. 2015–
0002; Sequence 12]
Federal Procurement Data System
Product Service Code Manual Update
Federal Acquisition Service;
General Services Administration.
ACTION: Notice.
AGENCY:
This notice announces that
the Product and Service Codes (PSC)
Manual, which provides codes to
describe products, services, and
research and development purchased by
the government, is in the process of
being updated. The General Services
Administration (GSA), which maintains
the PSC Manual, is in the process of
updating the manual. The update
includes the addition, deletion or
revisions of codes. The revised PSC
Manual will be effective October 1, 2015
(FY 2016).
DATES: Effective: May 28, 2015.
Comments: Interested parties should
submit written comments to the
Regulatory Secretariat at one of the
addresses shown below on or before
June 29, 2015.
ADDRESSES: Submit comments, June 29,
2015, identified by Notice–2015–QVO–
01, Federal Procurement Data System
Product and Service Codes Manual
Update, by any of the following
methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
searching for Notice–2015–QVO–01.
Select the link ‘‘Comment Now’’ that
corresponds with ‘‘Notice–2015–QVO–
01, Federal Procurement Data System
Product and Service Codes Manual
Update’’. Follow the instructions
provided on the screen. Please include
your name, company name (if any), and
SUMMARY:
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]]>Agencies
[Federal Register Volume 80, Number 102 (Thursday, May 28, 2015)]
[Notices]
[Pages 30459-30461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12738]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: On June 15, 1984, the Office of Management and Budget (OMB)
delegated to the Board of Governors of the Federal Reserve System
(Board) its approval authority under the Paperwork Reduction Act (PRA),
to approve of and assign OMB control numbers to collection of
information requests and requirements conducted or sponsored by the
Board. Board-approved collections of information are incorporated into
the official OMB inventory of currently approved collections of
information. Copies of the PRA Submission, supporting statements and
approved collection of information instruments 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.
DATES: Comments must be submitted on or before July 27, 2015.
ADDRESSES: You may submit comments, identified by FR 4199, by any of
the following methods:
Agency Web site: https://www.federalreserve.gov. Follow the
instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: regs.comments@federalreserve.gov. Include OMB
[[Page 30460]]
number in the subject line of the message.
FAX: (202) 452-3819 or (202) 452-3102.
Mail: Robert deV. Frierson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue NW.,
Washington, DC 20551.
All public comments are available from the Board's Web site at
https://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted,
unless modified for technical reasons. Accordingly, your comments will
not be edited to remove any identifying or contact information. Public
comments may also be viewed electronically or in paper form in Room
3515, 1801 K Street (between 18th and 19th Streets NW.) Washington, DC
20006 between 9:00 a.m. and 5:00 p.m. on weekdays.
Additionally, commenters may send a copy of their comments to the
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 or by
fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission,
including the proposed reporting form and instructions, supporting
statement, and other documentation will be placed into OMB's public
docket files, once approved. These documents will also be made
available on the Federal Reserve Board's public Web site at: https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears below.
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.
SUPPLEMENTARY INFORMATION:
Request for Comment on Information Collection Proposal
The following information collection, which is being handled under
this delegated authority, has received initial Board approval and is
hereby published for comment. At the end of the comment period, the
proposed information collection, along with an analysis of comments and
recommendations received, will be submitted to the Board for final
approval under OMB delegated authority. Comments are invited on the
following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Federal Reserve's functions; including
whether the information has practical utility;
b. The accuracy of the Federal Reserve's estimate of the burden of
the proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information 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.
Proposal To Approve Under OMB Delegated Authority the Extension for
Three Years, Without Revision, of the Following Report
Report title: Basel II Interagency Pillar 2 Supervisory Guidance.
Agency form number: FR 4199.
OMB control number: 7100-0320.
Frequency: Annual.
Reporters: State member banks, bank holding companies (BHCs).
Estimated annual reporting hours: 5,460.
Estimated average hours per response: 420.
Number of respondents: 13.
General description of report: The Board's Legal Division has
determined that the FR 4199 is authorized by section 9(6) of the
Federal Reserve Act and section 5 of the Bank Holding Company Act.
Section 9(6) of the Federal Reserve Act requires state member banks to
``comply with the reserve and capital requirements of this chapter''
and to make reports of condition ``in such form'' and ``contain[ing]
such information'' as the Board may require (12 U.S.C. 324). Section 5
of the Bank Holding Company Act authorizes the Board to ``issue
regulations and orders relating to the capital requirement for bank
holding companies'' and requires BHCs to ``keep the Board informed as
to [their] financial condition, systems for monitoring and controlling
financial and operating risks . . .'' (12 U.S.C. 1844 (b) & (c)).
Because the recordkeeping requirements are contained within guidance
(and not a statute or regulation), they are voluntary. Because the FR
4199 recordkeeping requirements require that banks and BHCs retain
their own records, the Freedom of Information Act (FOIA) would only be
implicated if the Federal Reserve's examiners retained a copy of the
records as part of an examination or supervision of a bank or BHC.
However, records obtained as a part of an examination or supervision of
a bank or BHC are exempt from disclosure under FOIA exemption (b)(8),
for examination material (5 U.S.C. 552(b)(8)). In addition, the records
may also be exempt under (b)(4), which exempts from disclosure ``trade
secrets and commercial or financial information obtained from a person
and privileged or confidential,'' and under (b)(6) for non-public
personal information regarding owners, shareholders, directors,
officers or employees if the disclosure would ``constitute a clearly
unwarranted invasion of personal privacy'' (5 U.S.C. 552(b)(4) and
(b)(6)).
Abstract: The advanced approaches framework requires certain banks
and BHCs to use an internal ratings-based approach to calculate
regulatory credit risk capital requirements and advance measurement
approaches to calculate regulatory operational risk capital
requirements, and to meet the higher of the minimum requirements under
the general risk-based capital rules and the minimum requirements under
the advanced approaches framework.
A bank is required to comply with the advanced approaches framework
if it meets either of two independent threshold criteria: (1)
Consolidated total assets of $250 billion or more, as reported on the
most recent year-end regulatory reports; or (2) consolidated total on-
balance sheet foreign exposure of $10 billion or more at the most
recent year-end.
A BHC is required to comply with the advanced approaches framework
if the BHC has (1) consolidated total assets (excluding assets held by
an insurance underwriting subsidiary) of $250 billion or more, as
reported on the most recent year-end regulatory reports; (2)
consolidated total on-balance sheet foreign exposure of $10 billion or
more at the most recent year-end; or (3) a subsidiary depository
institution (DI) that is meets the criteria to be subject to the
advanced approaches rule, or elects to adopt the advanced approaches.
As of September 30, 2014, 13 BHCs meet the above criteria and are
therefore subject to the advanced approaches rule.\1\
---------------------------------------------------------------------------
\1\ Regulation YY permits a bank holding company that is a
subsidiary of a foreign banking organization to elect not to comply
with the advanced approaches rule prior to formation of an IHC with
the prior approval of the Board. 12 CFR 252.153(e)(2)(C).
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Also, some banks or BHCs may voluntarily decide to adopt the
advanced approaches framework. Both
[[Page 30461]]
mandatory and voluntary respondents are required to meet certain
qualification requirements before they can use the advanced approaches
framework for risk-based capital purposes.
The Pillar 2 Guidance sets the expectation that respondents
maintain certain documentation as described in paragraphs 37, 41, 43,
and 46 of this portion of the guidance. Details of the expectations for
each section are provided below.
Setting and Assessing Capital Adequacy Goals That Relate to Risk
Paragraph 37. In analyzing capital adequacy, a banking organization
should evaluate the capacity of its capital to absorb losses. Because
various definitions of capital are used within the banking industry,
each banking organization should state clearly the definition of
capital used in any aspect of its internal capital adequacy assessment
process (ICAAP).\2\ Since components of capital are not necessarily
alike and have varying capacities to absorb losses, a banking
organization should be able to demonstrate the relationship between its
internal capital definition and its assessment of capital adequacy. If
a banking organization's definition of capital differs from the
regulatory definition, the banking organization should reconcile such
differences and provide an analysis to support the inclusion of any
capital instruments that are not recognized under the regulatory
definition. Although common equity is generally the predominant
component of a banking organization's capital structure, a banking
organization may be able to support the inclusion of other capital
instruments in its internal definition of capital if it can demonstrate
a similar capacity to absorb losses. The banking organization should
document any changes in its internal definition of capital, and the
reason for those changes.
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\2\ A bank holding company with total consolidated assets of $50
billion or more is required to develop and maintain a capital plan,
which must set forth a capital adequacy process. 76 FR 74631
(December 1, 2011). ICAAP would constitute an internal capital
adequacy process for purposes of the final rule, and bank holding
companies that have a satisfactory ICAAP generally would be
considered to have a satisfactory internal capital adequacy process
for purposes of the final rule.
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Ensuring Integrity of Internal Capital Adequacy Assessments
Paragraph 41. A banking organization should maintain thorough
documentation of its ICAAP to ensure transparency. At a minimum, this
should include a description of the banking organization's overall
capital-management process, including the committees and individuals
responsible for the ICAAP; the frequency and distribution of ICAAP-
related reporting; and the procedures for the periodic evaluation of
the appropriateness and adequacy of the ICAAP. In addition, where
applicable, ICAAP documentation should demonstrate the banking
organization's sound use of quantitative methods (including model
selection and limitations) and data-selection techniques, as well as
appropriate maintenance, controls, and validation. A banking
organization should document and explain the role of third-party and
vendor products, services and information--including methodologies,
model inputs, systems, data, and ratings--and the extent to which they
are used within the ICAAP. A banking organization should have a process
to regularly evaluate the performance of third-party and vendor
products, services and information. As part of the ICAAP documentation,
a banking organization should document the assumptions, methods, data,
information, and judgment used in its quantitative and qualitative
approaches.
Paragraph 43. The board of directors and senior management have
certain responsibilities in developing, implementing, and overseeing
the ICAAP. The board should approve the ICAAP and its components. The
board or its appropriately delegated agent should review the ICAAP and
its components on a regular basis, and approve any revisions. That
review should encompass the effectiveness of the ICAAP, the
appropriateness of risk tolerance levels and capital planning, and the
strength of control infrastructures. Senior management should
continually ensure that the ICAAP is functioning effectively and as
intended, under a formal review policy that is explicit and well
documented. Additionally, a banking organization's internal audit
function should play a key role in reviewing the controls and
governance surrounding the ICAAP on an ongoing basis.
Paragraph 46. As part of the ICAAP, the board or its delegated
agent, as well as appropriate senior management, should periodically
review the resulting assessment of overall capital adequacy. This
review, which should occur at least annually, should include an
analysis of how measures of internal capital adequacy compare with
other capital measures (such as regulatory, accounting-based or market-
determined). Upon completion of this review, the board or its delegated
agent should determine that, consistent with safety and soundness, the
banking organization's capital takes into account all material risks
and is appropriate for its risk profile. However, in the event a
capital deficiency is uncovered (that is, if capital is not consistent
with the banking organization's risk profile or risk tolerance)
management should consult and adhere to formal procedures to correct
the capital deficiency.
Board of Governors of the Federal Reserve System, May 21, 2015.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2015-12738 Filed 5-27-15; 8:45 am]
BILLING CODE 6210-01-P
