Agency Information Collection Activities: Revision of an Approved Information Collection; Comment Request; Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions With Total Consolidated Assets of $50 Billion or More Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, 71915-71918 [2015-29211]
Download as PDF
71915
Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices
This
notice is provided in accordance with
the Federal Advisory Committee Act
(Pub. L. 92–463, 5 U.S.C. App. 2). As
noted above, TRACS is a Federal
Advisory Committee established to
provide information, advice, and
recommendations to the Secretary and
the Administrator of the Federal Transit
Administration (FTA) on matters
relating to the safety of public
transportation systems. TRACS is
currently composed of 28 members
representing a broad base of expertise
necessary to discharge its
responsibilities. The tentative agenda
for this meeting of TRACS is set forth
below:
SUPPLEMENTARY INFORMATION:
Agenda
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(1) Welcome Remarks/Introductions
(2) Previously Issued Recommendations
(3) Organizational and Activity Update
from the FTA Office of Transit
Safety and Oversight (TSO)
(4) Public Comments
(5) Wrap Up
As previously noted, this meeting will
be accessible to the public. Persons
wishing to participate must contact
Bridget Zamperini, Federal Transit
Administration, Office of Transit Safety
and Oversight, at (202) 366–0306 or
TRACS@dot.gov on or before November
27, 2015, to receive the information
necessary to access the virtual meeting.
Members of the public who wish to
make an oral statement during the
meeting or require special
accommodations are also directed to
make a request to Bridget Zamperini at
(202) 366–0306 or TRACS@dot.gov on
or before November 27, 2015. Provisions
will be made to include oral statements
on the agenda, if needed. Members of
the public may submit written
comments or suggestions concerning the
activities of TRACS at any time before
or after the meeting at TRACS@dot.gov,
or to the attention of Bridget Zamperini
at the U.S. Department of
Transportation, Federal Transit
Administration, Office of Transit Safety
and Oversight, Room E45–310, 1200
New Jersey Avenue SE., Washington,
DC 20590. Information from the meeting
will be posted on FTA’s public Web site
at https://www.fta.dot.gov/about/
13099.html. Written comments
submitted to TRACS will also be posted
at the above Web address.
Therese W. McMillan,
Acting Administrator.
[FR Doc. 2015–29178 Filed 11–16–15; 8:45 am]
BILLING CODE P
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
Meeting Notice—U.S. Marine
Transportation System National
Advisory Council
Maritime Administration,
Department of Transportation.
ACTION: Notice of advisory council
public meeting.
AGENCY:
The Maritime Administration
(MARAD) announces a public meeting
of its U.S. Marine Transportation
System National Advisory Council
(MTSNAC or Council) to discuss advice
and recommendations it would like to
provide to the U.S. Department of
Transportation for consideration on the
development of a National Maritime
Strategy, integration of Marine
Highways into the national
transportation system and options to
provide a steady and reliable funding
mechanism for port infrastructure
development.
SUMMARY:
The meeting will be held on
Tuesday, December 1, 2015 from 10:00
a.m. to 4:00 p.m., Eastern Standard
Time.
DATES:
The meeting will be held at
the U.S. Department of Transportation,
Federal Motor Carrier Safety
Administration, National Training
Center, 1310 N. Courthouse Road, Suite
600, Arlington, VA 22201–2508.
FOR FURTHER INFORMATION CONTACT:
Tretha Chromey, Acting Designated
Federal Officer at (202) 366–1630 or
MTSNAC@dot.gov or visit the MTSNAC
Web site at https://www.marad.dot.gov/
ports/marine-transportation-systemmts/marine-transportation-systemnational-advisory-committee-mtsnac/.
SUPPLEMENTARY INFORMATION: The
MTSNAC is a Federal advisory
committee within MARAD that advises
the U.S. Department of Transportation
on issues related to the marine
transportation system. The MTSNAC
was originally established in 1999 and
mandated in 2007 by the Energy
Independence and Security Act of 2007.
The MTSNAC operates in accordance
with the provisions of the Federal
Advisory Committee Act (FACA).
ADDRESSES:
Agenda
The agenda will include: (1)
Welcome, opening remarks and
introductions; (2) MTSNAC members
discussion on a National Maritime
Strategy; (3) subcommittee updates and
proposed recommendations and (4)
public comment. The meeting agenda
will be posted on the MTSNAC Web site
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at https://www.marad.dot.gov/ports/
marine-transportation-system-mts/
marine-transportation-system-nationaladvisory-committee-mtsnac/.
Public Participation
The meeting will be open to the
public. Members of the public who wish
to attend in person are asked to RSVP
to MTSNAC@dot.gov with your name
and affiliation no later than November
23, 2015, in order to facilitate entry and
guarantee seating.
Services for Individuals with
Disabilities: The public meeting is
physically accessible to people with
disabilities. Individuals requiring
accommodations, such as sign language
interpretation or other ancillary aids are
asked to notify Ms. Tretha Chromey, at
(202) 366–1630 or MTSNAC@dot.gov
five (5) business days before the
meeting.
Written comments: Persons who wish
to submit written comments for
consideration by the Council must email
MTSNAC@dot.gov, or send them to Ms.
Tretha Chromey, Acting Designated
Federal Officer, Marine Transportation
System National Advisory Council,
1200 New Jersey Avenue SE., W21–306,
Washington, DC 20590 by November 23,
2015 to provide sufficient time for
review. All other comments may be
received at any time before or after the
meeting.
Authority: 49 CFR part 1.93(a); 5 U.S.C.
552b; 41 CFR parts 102–3; 5 U.S.C. app.
Sections 1–16.
*
*
*
*
*
By Order of the Maritime Administrator.
Dated: November 10, 2015.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2015–29193 Filed 11–16–15; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
Agency Information Collection
Activities: Revision of an Approved
Information Collection; Comment
Request; Company-Run Annual Stress
Test Reporting Template and
Documentation for Covered
Institutions With Total Consolidated
Assets of $50 Billion or More Under the
Dodd-Frank Wall Street Reform and
Consumer Protection Act
Office of the Comptroller of the
Currency, Treasury (OCC).
ACTION: Notice and request for
comment.
AGENCY:
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71916
Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices
The OCC, as part of its
continuing effort to reduce paperwork
and respondent burden, invites the
general public and other Federal
agencies to comment on a revision to
this information collection, as required
by the Paperwork Reduction Act of
1995. An agency may not conduct or
sponsor, and a respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number. Currently, the
OCC is soliciting comment concerning a
revision to a regulatory reporting
requirement for national banks and
federal savings associations titled,
‘‘Company-Run Annual Stress Test
Reporting Template and Documentation
for Covered Institutions with Total
Consolidated Assets of $50 Billion or
More under the Dodd-Frank Wall Street
Reform and Consumer Protection Act.’’
DATES: Comments must be received by
January 19, 2016.
ADDRESSES: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by
email, if possible. Comments may be
sent to: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, Attention:
1557–0311, 400 7th Street SW., Suite
3E–218, Mail Stop 9W–11, Washington,
DC 20219. In addition, comments may
be sent by fax to (571) 465–4326 or by
electronic mail to prainfo@occ.treas.gov.
You may personally inspect and
photocopy comments at the OCC, 400
7th Street SW., Washington, DC 20219.
For security reasons, the OCC requires
that visitors make an appointment to
inspect comments. You may do so by
calling (202) 649–6700 or, for persons
who are deaf or hard of hearing, TTY,
(202) 649–5597. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and submit to security screening in
order to inspect and photocopy
comments.
All comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT:
Shaquita Merritt or Mary H. Gottlieb,
OCC Clearance Officers, (202) 649–5490
or, for persons who are deaf or hard of
hearing, TTY, (202) 649–5597,
Legislative and Regulatory Activities
Division, Office of the Comptroller of
the Currency, 400 7th St. SW.,
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SUMMARY:
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Washington, DC 20219. In addition,
copies of the templates referenced in
this notice can be found on the OCC’s
Web site under News and Issuances
(https://www.occ.treas.gov/tools-forms/
forms/bank-operations/stress-testreporting.html).
SUPPLEMENTARY INFORMATION: The OCC
is requesting comment on the following
revision to an approved information
collection:
Title: Company-Run Annual Stress
Test Reporting Template and
Documentation for Covered Institutions
with Total Consolidated Assets of $50
Billion or More under the Dodd-Frank
Wall Street Reform and Consumer
Protection Act.
OMB Control No.: 1557–0311.
Description: Section 165(i)(2) of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act 1 (Dodd-Frank
Act) requires certain financial
companies, including national banks
and federal savings associations, to
conduct annual stress tests 2 and
requires the primary financial regulatory
agency 3 of those financial companies to
issue regulations implementing the
stress test requirements.4 A national
bank or Federal savings association is a
‘‘covered institution’’ and therefore
subject to the stress test requirements if
its total consolidated assets are more
than $10 billion. Under section
165(i)(2), a covered institution is
required to submit to the Board of
Governors of the Federal Reserve
System (Board) and to its primary
financial regulatory agency a report at
such time, in such form, and containing
such information as the primary
financial regulatory agency may
require.5 On October 9, 2012, the OCC
published in the Federal Register a final
rule implementing the section 165(i)(2)
annual stress test requirement.6 This
rule describes the reports and
information collections required to meet
the reporting requirements under
section 165(i)(2). These information
collections will be given confidential
treatment (5 U.S.C. 552(b)(4)).
In 2012, the OCC first implemented
the reporting templates referenced in
the final rule. See 77 FR 49485 (August
16, 2012) and 77 FR 66663 (November
6, 2012). The OCC is now revising them
as described below.
The OCC intends to use the data
collected to assess the reasonableness of
1 Public
Law 111–203, 124 Stat. 1376, July 2010.
U.S.C. 5365(i)(2)(A).
3 12 U.S.C. 5301(12).
4 12 U.S.C. 5365(i)(2)(C).
5 12 U.S.C. 5365(i)(2)(B).
6 77 FR 61238 (October 9, 2012) (codified at 12
CFR 46).
2 12
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the stress test results of covered
institutions and to provide forwardlooking information to the OCC
regarding a covered institution’s capital
adequacy. The OCC also may use the
results of the stress tests to determine
whether additional analytical
techniques and exercises could be
appropriate to identify, measure, and
monitor risks at the covered institution.
The stress test results are expected to
support ongoing improvement in a
covered institution’s stress testing
practices with respect to its internal
assessments of capital adequacy and
overall capital planning.
The OCC recognizes that many
covered institutions with total
consolidated assets of $50 billion or
more are required to submit reports
using CCAR reporting form FR Y–14A.7
The OCC also recognizes the Board has
a proposal to modify the FR Y–14A out
for comment and, to the extent practical,
the OCC will keep its reporting
requirements consistent with the
Board’s FR Y–14A in order to minimize
burden on covered institutions.8
Therefore, the OCC is proposing to
revise its reporting requirements to
remain consistent with the Board’s
proposed FR Y–14A for covered
institutions with total consolidated
assets of $50 billion or more. The OCC
is also proposing to revise the Scenario
Schedule, which collects information on
scenario variables beyond those
provided by the OCC. The purpose of
this revision is to require further clarity
on the definitions of the additional
scenario variables.
Proposed Revisions to Reporting
Templates for Institutions With $50
Billion or More in Assets
The proposed revisions to the
DFAST–14A reporting templates consist
of the following:
• Bank-specific scenario: Covered
institutions would be required to submit
bank-specific baseline and stress
scenarios and projections for 2017 and
will have the option to do so for 2016;
• Largest counterparty default: For
the largest trading covered institutions
that also submit the Global Market
Shock scenario, they would be required
to assume the default of their largest
counterparty in the supervisory severely
adverse and adverse scenarios for 2017
and will have the option to do so for
2016;
• Advanced approaches banks: (1)
Delay incorporation of the supplemental
leverage ratio for one year and (2)
7 https://www.federalreserve.gov/reportforms.
8 80
FR 55631 (Sept. 16, 2015).
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indefinitely defer the use of the advance
approaches for stress testing projections;
• Reporting Template and Supporting
Documentation Changes: Clarifying
instructions, adding data items, deleting
data items, and redefining existing data
items. This includes an expansion of the
information collected in the scenario
schedule. The proposed revisions also
include a shift of the as-of date in
accordance with modifications to the
OCC’s stress testing rule.9
• These revisions also reflect the
implementation of the final Basel III
regulatory capital rule. On July 9, 2013,
the OCC approved a joint final rule that
will revise and replace the OCC’s riskbased and leverage capital requirements
to be consistent with agreements
reached by the Basel Committee on
Banking Supervision in ‘‘Basel III: A
Global Regulatory Framework for More
Resilient Banks and Banking Systems’’
(Basel III).10 Accordingly, the proposed
revisions would reflect the fact that
institutions will no longer report items
based on the pre-Basel III capital rules.
Bank-Specific Scenarios
Covered institutions would be
required to submit bank-specific
baseline and bank-specific stress
scenarios and associated projections for
the 2017 annual stress testing
submission and may do so optionally
for the 2016 annual stress testing
submission. While supervisory
scenarios provide a homogeneous
scenario and a consistent market-wide
view of the condition of the banking
sector, these prescribed scenarios may
not fully capture all of the risks that
may be associated with a particular
institution. The proposed revisions
would require covered institutions to
provide bank-specific baseline and
bank-specific stress scenarios.
The OCC recognizes that the Board
requires bank holding companies
(BHCs) to submit BHC-specific baseline
and stress scenarios and projections.
Where OCC-covered institutions also
submit BHC-specific scenarios, the OCC
would require that bank-specific
scenarios would be consistent with the
BHC-specific scenarios.
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Largest Counterparty Default
Covered institutions that currently
complete the Global Market Shock
would also be required to complete the
Largest Counterparty Default component
for the 2017 submission and have the
option to do so for the 2016 submission.
9 See 79 FR 71630 (Dec. 3, 2014) (shifting the
dates of the annual stress testing cycle).
10 https://www.occ.gov/news-issuances/newsreleases/2013/nr-occ-2013-110.html.
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This is currently required by the Board,
and the OCC would adopt a similar
requirement to enhance consistency and
reduce regulatory burden.
Supplemental Leverage Ratio
The supplementary leverage ratio
requirement applies only to covered
institutions that use the advanced
approaches to calculate their minimum
regulatory capital requirements. For
these covered institutions, the proposal
would delay the incorporation of the
supplementary leverage ratio in stress
testing projections for one year. Under
the proposal, these covered institutions
would not be required to include an
estimate of the supplementary leverage
ratio for the stress test cycle beginning
on January 1, 2016. The OCC
understands that the Board is proposing
a similar requirement, and the OCC
would adopt a similar requirement to
enhance consistency and reduce
regulatory burden.
Advanced Approaches
Covered institutions have noted that
the use of advanced approaches in stress
test rules would require significant
resources and would introduce
complexity and opacity. In light of the
concerns raised by these covered
institutions, and pending a review of
how the stress test rules interact with
the regulatory capital rules as described
above, the proposal would delay until
further notice the use of the advanced
approaches for calculating risk-based
capital requirements for purposes of the
capital plan and stress test rule.
Other Reporting Template and
Instruction Changes
The proposed revisions to the
DFAST–14A consist of clarifying
instructions, adding and removing
schedules, adding, deleting, and
modifying existing data items, and
altering the as-of dates. These proposed
changes would (1) increase consistency
between the DFAST–14A with the FR
Y–14A, Call Report, FFIEC 101, and
FFIEC 102; (2) remove the requirement
to calculate tier 1 common capital and
the tier 1 common ratio; (3) shift the asof dates by one quarter in accordance
with the modifications to the stress test
rules; (4) modify and expand the
supporting documentation
requirements; and (5) increase the
historical information collected in the
scenario schedule in order to facilitate
comparisons of the data. Furthermore,
the OCC understands that the Board is
currently collecting information for the
Summary Schedule via XML scheme
technology, and the OCC would use a
similar format to enhance consistency
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71917
and reduce regulatory burden.
Technical details on these forms will be
provided separately.
Schedule A (Summary)—A.1.c.1
(General RWA)
This schedule would be removed in
accordance with the proposed revisions
to eliminate use of the tier 1 common
ratio, effective for the 2016 DFAST
submission. However, in order to
mitigate operational issues and allow for
appropriate time to adjust internal
systems to accommodate changes this
schedule would remain part of the
technical XML instructions for the 2016
DFAST submission.
Schedule A (Summary)—Revisions to
Schedule A.1.c.2 (Standardized RWA)
This schedule would be modified to
increase consistency with the FFIEC
102. Specifically, the items of the
existing market risk-weighted asset
portion would be replaced with the
appropriate items from the FFIEC 102.
These changes would be effective for the
2017 DFAST submission.
Schedule A (Summary)—Revisions to
Schedule A.1.d (Capital)
The OCC proposes removing certain
items related to tier 1 common capital,
effective for the 2016 DFAST
submission. However, in order to
mitigate operational issues and allow for
appropriate time to adjust internal
systems to accommodate changes, this
schedule would remain part of the
technical XML instructions for the
DFAST 2016 submission. Additionally,
effective for the 2016 DFAST
submission, the OCC proposes adding
one item that captures the aggregate
non-significant investments in the
capital of unconsolidated financial
institutions in the form of common
stock and breaking out two items related
to deferred tax assets into the amount
before valuation allowances and the
associated valuation allowance. The
additional information from these
changes would result in two existing
items converting to derived items based
on the additional information.
Schedule A (Summary)—Revisions to
Schedule A.2.b (Retail Repurchase)
This schedule would be removed to
reduce reporting burden, effective for
the 2017 DFAST submission.
Schedule A (Summary)—Deletion of
Schedule A.2.c (ASC 310–30)
This schedule would be removed to
reduce reporting burden, effective for
the 2017 DFAST submission.
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Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices
Schedule A (Summary)—Revisions to
Schedule A.7.c (PPNR Metrics)
In order to fully align the schedule
with the stress scenarios, the beta
information would be collected
according to the scenario instead of the
current ‘‘normal environment’’
requirement, effective for the 2016
DFAST submission.
Counterparty Credit Risk Schedule
This schedule would be removed to
reduce reporting burden effective for the
2016 DFAST submission. Aggregate
counterparty credit risk information will
continue to be obtained through the
Summary Schedule (Schedule A).
mstockstill on DSK4VPTVN1PROD with NOTICES
Information about additional
scenarios that are used by covered
institutions is currently submitted in a
format with limited structure, which
makes it difficult for the OCC to
evaluate. As such, the OCC would
require that covered institutions provide
three more historical quarters in
addition to the currently required most
recent historical quarter of actual data
values for each additional variable
submitted. The OCC would also provide
additional instructions on variable
naming conventions and other
appropriate standardizations in order to
facilitate more streamlined electronic
processing of the data.
Type of Review: Revision.
Affected Public: Businesses or other
for-profit.
Estimated Number of Respondents:
23.
Estimated Total Annual Burden:
16,466 hours.
The OCC believes that the systems
covered institutions use to prepare the
FR Y–14 reporting templates to submit
to the Board will also be used to prepare
the reporting templates described in this
notice. Comments submitted in
response to this notice will be
summarized and included in the request
for OMB approval. All comments will
become a matter of public record.
Comments are invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
OCC, including whether the information
has practical utility;
(b) The accuracy of the OCC’s
estimate of the burden of the collection
of information;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
the collection on respondents, including
through the use of automated collection
18:14 Nov 16, 2015
Dated: November 9, 2015.
Stuart Feldstein,
Director, Legislative and Regulatory Activities
Division.
[FR Doc. 2015–29211 Filed 11–16–15; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF THE TREASURY
Fiscal Service
Scenario Schedule
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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.
Jkt 238001
Surety Companies Acceptable on
Federal Bonds: Change In Business
Address Colonial Surety Company
Bureau of the Fiscal Service,
Fiscal Service, Department of the
Treasury.
AGENCY:
ACTION:
Notice.
This is Supplement No. 4 to
the Treasury Department Circular 570,
2015 Revision, published July 1, 2015,
at 80 FR 37735.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Surety Bond Branch at (202) 874–6850.
Notice is
hereby given by the Treasury that
COLONIAL SURETY COMPANY
formally changed its ‘‘BUSINESS
ADDRESS’’ to: 123 Tice Boulevard,
Suite 250, Woodcliff Lake, NJ 07677.
Federal bond-approving officers
should annotate their reference copies
of the Treasury Department Circular 570
(‘‘Circular’’), 2015 revision, to reflect
this change.
The Circular may be viewed and
downloaded through the Internet at
www.fiscal.treasury.gov/fsreports/ref/
suretyBnd/surety_home.htm.
Questions concerning this notice may
be directed to the U.S. Department of
the Treasury, Financial Management
Service, Funds Management Division,
Surety Bond Branch, 3700 East-West
Highway, Room 6D22, Hyattsville, MD
20782.
SUPPLEMENTARY INFORMATION:
Dated: November 2, 2015.
Kevin McIntyre,
Manager, Financial Accounting and Services
Branch.
[FR Doc. 2015–29299 Filed 11–16–15; 8:45 am]
BILLING CODE 4810–AS–P
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Additional Designations, Foreign
Narcotics Kingpin Designation Act
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:
The U.S. Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing the names
of two individuals and two entities
whose property and interests in
property have been blocked pursuant to
the Foreign Narcotics Kingpin
Designation Act (Kingpin Act) (21
U.S.C. 1901–1908, 8 U.S.C. 1182).
DATES: The designation by the Acting
Director of OFAC of the two individuals
and two entities identified in this notice
pursuant to section 805(b) of the
Kingpin Act is effective on November
10, 2015.
FOR FURTHER INFORMATION CONTACT:
Assistant Director, Sanctions
Compliance & Evaluation, Office of
Foreign Assets Control, U.S. Department
of the Treasury, Washington, DC 20220,
Tel: (202) 622–2490.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Electronic and Facsimile Availability
This document and additional
information concerning OFAC are
available on OFAC’s Web site at https://
www.treasury.gov/ofac or via facsimile
through a 24-hour fax-on-demand
service at (202) 622–0077.
Background
The Kingpin Act became law on
December 3, 1999. The Kingpin Act
establishes a program targeting the
activities of significant foreign narcotics
traffickers and their organizations on a
worldwide basis. It provides a statutory
framework for the imposition of
sanctions against significant foreign
narcotics traffickers and their
organizations on a worldwide basis,
with the objective of denying their
businesses and agents access to the U.S.
financial system and the benefits of
trade and transactions involving U.S.
companies and individuals.
The Kingpin Act blocks all property
and interests in property, subject to U.S.
jurisdiction, owned or controlled by
significant foreign narcotics traffickers
as identified by the President. In
addition, the Secretary of the Treasury,
in consultation with the Attorney
General, the Director of the Central
Intelligence Agency, the Director of the
Federal Bureau of Investigation, the
Administrator of the Drug Enforcement
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Agencies
[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)]
[Notices]
[Pages 71915-71918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29211]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Revision of an Approved
Information Collection; Comment Request; Company-Run Annual Stress Test
Reporting Template and Documentation for Covered Institutions With
Total Consolidated Assets of $50 Billion or More Under the Dodd-Frank
Wall Street Reform and Consumer Protection Act
AGENCY: Office of the Comptroller of the Currency, Treasury (OCC).
ACTION: Notice and request for comment.
-----------------------------------------------------------------------
[[Page 71916]]
SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites the general public and other Federal
agencies to comment on a revision to this information collection, as
required by the Paperwork Reduction Act of 1995. An agency may not
conduct or sponsor, and a respondent is not required to respond to, an
information collection unless it displays a currently valid Office of
Management and Budget (OMB) control number. Currently, the OCC is
soliciting comment concerning a revision to a regulatory reporting
requirement for national banks and federal savings associations titled,
``Company-Run Annual Stress Test Reporting Template and Documentation
for Covered Institutions with Total Consolidated Assets of $50 Billion
or More under the Dodd-Frank Wall Street Reform and Consumer Protection
Act.''
DATES: Comments must be received by January 19, 2016.
ADDRESSES: Because paper mail in the Washington, DC area and at the OCC
is subject to delay, commenters are encouraged to submit comments by
email, if possible. Comments may be sent to: Legislative and Regulatory
Activities Division, Office of the Comptroller of the Currency,
Attention: 1557-0311, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to
(571) 465-4326 or by electronic mail to prainfo@occ.treas.gov. You may
personally inspect and photocopy comments at the OCC, 400 7th Street
SW., Washington, DC 20219. For security reasons, the OCC requires that
visitors make an appointment to inspect comments. You may do so by
calling (202) 649-6700 or, for persons who are deaf or hard of hearing,
TTY, (202) 649-5597. Upon arrival, visitors will be required to present
valid government-issued photo identification and submit to security
screening in order to inspect and photocopy comments.
All comments received, including attachments and other supporting
materials, are part of the public record and subject to public
disclosure. Do not include any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt or Mary H. Gottlieb,
OCC Clearance Officers, (202) 649-5490 or, for persons who are deaf or
hard of hearing, TTY, (202) 649-5597, Legislative and Regulatory
Activities Division, Office of the Comptroller of the Currency, 400 7th
St. SW., Washington, DC 20219. In addition, copies of the templates
referenced in this notice can be found on the OCC's Web site under News
and Issuances (https://www.occ.treas.gov/tools-forms/forms/bank-operations/stress-test-reporting.html).
SUPPLEMENTARY INFORMATION: The OCC is requesting comment on the
following revision to an approved information collection:
Title: Company-Run Annual Stress Test Reporting Template and
Documentation for Covered Institutions with Total Consolidated Assets
of $50 Billion or More under the Dodd-Frank Wall Street Reform and
Consumer Protection Act.
OMB Control No.: 1557-0311.
Description: Section 165(i)(2) of the Dodd-Frank Wall Street Reform
and Consumer Protection Act \1\ (Dodd-Frank Act) requires certain
financial companies, including national banks and federal savings
associations, to conduct annual stress tests \2\ and requires the
primary financial regulatory agency \3\ of those financial companies to
issue regulations implementing the stress test requirements.\4\ A
national bank or Federal savings association is a ``covered
institution'' and therefore subject to the stress test requirements if
its total consolidated assets are more than $10 billion. Under section
165(i)(2), a covered institution is required to submit to the Board of
Governors of the Federal Reserve System (Board) and to its primary
financial regulatory agency a report at such time, in such form, and
containing such information as the primary financial regulatory agency
may require.\5\ On October 9, 2012, the OCC published in the Federal
Register a final rule implementing the section 165(i)(2) annual stress
test requirement.\6\ This rule describes the reports and information
collections required to meet the reporting requirements under section
165(i)(2). These information collections will be given confidential
treatment (5 U.S.C. 552(b)(4)).
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\1\ Public Law 111-203, 124 Stat. 1376, July 2010.
\2\ 12 U.S.C. 5365(i)(2)(A).
\3\ 12 U.S.C. 5301(12).
\4\ 12 U.S.C. 5365(i)(2)(C).
\5\ 12 U.S.C. 5365(i)(2)(B).
\6\ 77 FR 61238 (October 9, 2012) (codified at 12 CFR 46).
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In 2012, the OCC first implemented the reporting templates
referenced in the final rule. See 77 FR 49485 (August 16, 2012) and 77
FR 66663 (November 6, 2012). The OCC is now revising them as described
below.
The OCC intends to use the data collected to assess the
reasonableness of the stress test results of covered institutions and
to provide forward-looking information to the OCC regarding a covered
institution's capital adequacy. The OCC also may use the results of the
stress tests to determine whether additional analytical techniques and
exercises could be appropriate to identify, measure, and monitor risks
at the covered institution. The stress test results are expected to
support ongoing improvement in a covered institution's stress testing
practices with respect to its internal assessments of capital adequacy
and overall capital planning.
The OCC recognizes that many covered institutions with total
consolidated assets of $50 billion or more are required to submit
reports using CCAR reporting form FR Y-14A.\7\ The OCC also recognizes
the Board has a proposal to modify the FR Y-14A out for comment and, to
the extent practical, the OCC will keep its reporting requirements
consistent with the Board's FR Y-14A in order to minimize burden on
covered institutions.\8\ Therefore, the OCC is proposing to revise its
reporting requirements to remain consistent with the Board's proposed
FR Y-14A for covered institutions with total consolidated assets of $50
billion or more. The OCC is also proposing to revise the Scenario
Schedule, which collects information on scenario variables beyond those
provided by the OCC. The purpose of this revision is to require further
clarity on the definitions of the additional scenario variables.
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\7\ https://www.federalreserve.gov/reportforms.
\8\ 80 FR 55631 (Sept. 16, 2015).
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Proposed Revisions to Reporting Templates for Institutions With $50
Billion or More in Assets
The proposed revisions to the DFAST-14A reporting templates consist
of the following:
Bank-specific scenario: Covered institutions would be
required to submit bank-specific baseline and stress scenarios and
projections for 2017 and will have the option to do so for 2016;
Largest counterparty default: For the largest trading
covered institutions that also submit the Global Market Shock scenario,
they would be required to assume the default of their largest
counterparty in the supervisory severely adverse and adverse scenarios
for 2017 and will have the option to do so for 2016;
Advanced approaches banks: (1) Delay incorporation of the
supplemental leverage ratio for one year and (2)
[[Page 71917]]
indefinitely defer the use of the advance approaches for stress testing
projections;
Reporting Template and Supporting Documentation Changes:
Clarifying instructions, adding data items, deleting data items, and
redefining existing data items. This includes an expansion of the
information collected in the scenario schedule. The proposed revisions
also include a shift of the as-of date in accordance with modifications
to the OCC's stress testing rule.\9\
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\9\ See 79 FR 71630 (Dec. 3, 2014) (shifting the dates of the
annual stress testing cycle).
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These revisions also reflect the implementation of the
final Basel III regulatory capital rule. On July 9, 2013, the OCC
approved a joint final rule that will revise and replace the OCC's
risk-based and leverage capital requirements to be consistent with
agreements reached by the Basel Committee on Banking Supervision in
``Basel III: A Global Regulatory Framework for More Resilient Banks and
Banking Systems'' (Basel III).\10\ Accordingly, the proposed revisions
would reflect the fact that institutions will no longer report items
based on the pre-Basel III capital rules.
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\10\ https://www.occ.gov/news-issuances/news-releases/2013/nr-occ-2013-110.html.
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Bank-Specific Scenarios
Covered institutions would be required to submit bank-specific
baseline and bank-specific stress scenarios and associated projections
for the 2017 annual stress testing submission and may do so optionally
for the 2016 annual stress testing submission. While supervisory
scenarios provide a homogeneous scenario and a consistent market-wide
view of the condition of the banking sector, these prescribed scenarios
may not fully capture all of the risks that may be associated with a
particular institution. The proposed revisions would require covered
institutions to provide bank-specific baseline and bank-specific stress
scenarios.
The OCC recognizes that the Board requires bank holding companies
(BHCs) to submit BHC-specific baseline and stress scenarios and
projections. Where OCC-covered institutions also submit BHC-specific
scenarios, the OCC would require that bank-specific scenarios would be
consistent with the BHC-specific scenarios.
Largest Counterparty Default
Covered institutions that currently complete the Global Market
Shock would also be required to complete the Largest Counterparty
Default component for the 2017 submission and have the option to do so
for the 2016 submission. This is currently required by the Board, and
the OCC would adopt a similar requirement to enhance consistency and
reduce regulatory burden.
Supplemental Leverage Ratio
The supplementary leverage ratio requirement applies only to
covered institutions that use the advanced approaches to calculate
their minimum regulatory capital requirements. For these covered
institutions, the proposal would delay the incorporation of the
supplementary leverage ratio in stress testing projections for one
year. Under the proposal, these covered institutions would not be
required to include an estimate of the supplementary leverage ratio for
the stress test cycle beginning on January 1, 2016. The OCC understands
that the Board is proposing a similar requirement, and the OCC would
adopt a similar requirement to enhance consistency and reduce
regulatory burden.
Advanced Approaches
Covered institutions have noted that the use of advanced approaches
in stress test rules would require significant resources and would
introduce complexity and opacity. In light of the concerns raised by
these covered institutions, and pending a review of how the stress test
rules interact with the regulatory capital rules as described above,
the proposal would delay until further notice the use of the advanced
approaches for calculating risk-based capital requirements for purposes
of the capital plan and stress test rule.
Other Reporting Template and Instruction Changes
The proposed revisions to the DFAST-14A consist of clarifying
instructions, adding and removing schedules, adding, deleting, and
modifying existing data items, and altering the as-of dates. These
proposed changes would (1) increase consistency between the DFAST-14A
with the FR Y-14A, Call Report, FFIEC 101, and FFIEC 102; (2) remove
the requirement to calculate tier 1 common capital and the tier 1
common ratio; (3) shift the as-of dates by one quarter in accordance
with the modifications to the stress test rules; (4) modify and expand
the supporting documentation requirements; and (5) increase the
historical information collected in the scenario schedule in order to
facilitate comparisons of the data. Furthermore, the OCC understands
that the Board is currently collecting information for the Summary
Schedule via XML scheme technology, and the OCC would use a similar
format to enhance consistency and reduce regulatory burden. Technical
details on these forms will be provided separately.
Schedule A (Summary)--A.1.c.1 (General RWA)
This schedule would be removed in accordance with the proposed
revisions to eliminate use of the tier 1 common ratio, effective for
the 2016 DFAST submission. However, in order to mitigate operational
issues and allow for appropriate time to adjust internal systems to
accommodate changes this schedule would remain part of the technical
XML instructions for the 2016 DFAST submission.
Schedule A (Summary)--Revisions to Schedule A.1.c.2 (Standardized RWA)
This schedule would be modified to increase consistency with the
FFIEC 102. Specifically, the items of the existing market risk-weighted
asset portion would be replaced with the appropriate items from the
FFIEC 102. These changes would be effective for the 2017 DFAST
submission.
Schedule A (Summary)--Revisions to Schedule A.1.d (Capital)
The OCC proposes removing certain items related to tier 1 common
capital, effective for the 2016 DFAST submission. However, in order to
mitigate operational issues and allow for appropriate time to adjust
internal systems to accommodate changes, this schedule would remain
part of the technical XML instructions for the DFAST 2016 submission.
Additionally, effective for the 2016 DFAST submission, the OCC proposes
adding one item that captures the aggregate non-significant investments
in the capital of unconsolidated financial institutions in the form of
common stock and breaking out two items related to deferred tax assets
into the amount before valuation allowances and the associated
valuation allowance. The additional information from these changes
would result in two existing items converting to derived items based on
the additional information.
Schedule A (Summary)--Revisions to Schedule A.2.b (Retail Repurchase)
This schedule would be removed to reduce reporting burden,
effective for the 2017 DFAST submission.
Schedule A (Summary)--Deletion of Schedule A.2.c (ASC 310-30)
This schedule would be removed to reduce reporting burden,
effective for the 2017 DFAST submission.
[[Page 71918]]
Schedule A (Summary)--Revisions to Schedule A.7.c (PPNR Metrics)
In order to fully align the schedule with the stress scenarios, the
beta information would be collected according to the scenario instead
of the current ``normal environment'' requirement, effective for the
2016 DFAST submission.
Counterparty Credit Risk Schedule
This schedule would be removed to reduce reporting burden effective
for the 2016 DFAST submission. Aggregate counterparty credit risk
information will continue to be obtained through the Summary Schedule
(Schedule A).
Scenario Schedule
Information about additional scenarios that are used by covered
institutions is currently submitted in a format with limited structure,
which makes it difficult for the OCC to evaluate. As such, the OCC
would require that covered institutions provide three more historical
quarters in addition to the currently required most recent historical
quarter of actual data values for each additional variable submitted.
The OCC would also provide additional instructions on variable naming
conventions and other appropriate standardizations in order to
facilitate more streamlined electronic processing of the data.
Type of Review: Revision.
Affected Public: Businesses or other for-profit.
Estimated Number of Respondents: 23.
Estimated Total Annual Burden: 16,466 hours.
The OCC believes that the systems covered institutions use to
prepare the FR Y-14 reporting templates to submit to the Board will
also be used to prepare the reporting templates described in this
notice. Comments submitted in response to this notice will be
summarized and included in the request for OMB approval. All comments
will become a matter of public record. Comments are invited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the OCC, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimate of the burden of the
collection of information;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of the collection on respondents,
including through the use of automated collection techniques or other
forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Dated: November 9, 2015.
Stuart Feldstein,
Director, Legislative and Regulatory Activities Division.
[FR Doc. 2015-29211 Filed 11-16-15; 8:45 am]
BILLING CODE 4810-33-P