Proposed Agency Information Collection Activities; Comment Request, 19179-19181 [2016-07545]
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Federal Register / Vol. 81, No. 64 / Monday, April 4, 2016 / Notices
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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: Recordkeeping
Requirements Associated with the
Interagency Statement on Complex
Structured Finance Activities.
Agency form number: FR 4022.
OMB control number: 7100–0311.
Frequency: Annual.
Reporters: State member banks, bank
holding companies, and U.S. branches
and agencies of foreign banks.
Estimated annual reporting hours:
180 hours.
Estimated average hours per response:
10 hours.
Number of respondents: 18
respondents.
General description of report:
Sections 11(a), 11(i), 21, and 25 of the
Federal Reserve Act (12 U.S.C. 248(a),
248(i), 483, and 602) authorize the
Board to issue the information
collection and recordkeeping guidance
associated with the Interagency
Statement. In addition, section 5(c) of
the Bank Holding Company Act (12
U.S.C 1844(c)), section 10(b) of the
Home Owners’ Loan Act (12 U.S.C.
1467a (b)(2)), and section 13(a) of the
International Banking Act (12 U.S.C.
3108(a)) provide further authority for
the Board to issue such rules and
guidance. As a guidance document, the
Interagency Statement is voluntary,
although conformance with the
guidance may be the subject of review
during examinations of institutions
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engaged in CSFTs. No information is
collected by the Board in connection
with the Interagency Statement, so the
issue of confidentiality does not
ordinarily arise. Should an institution’s
policies or procedures adopted pursuant
to the Interagency Statement be retained
as part of the record of an institution’s
examination, the records would be
exempt from disclosure under
exemption (b)(8) of the Freedom of
Information Act, 5 U.S.C. 552(b)(8).
Abstract: The guidance provides that
state member banks, bank holding
companies, and U.S. branches and
agencies of foreign banks supervised by
the Federal Reserve should establish
and maintain policies and procedures
for identifying, evaluating, assessing,
documenting, and controlling risks
associated with certain complex
structured finance transactions (CSFTs).
A financial institution engaged in
CSFTs should maintain a set of formal,
firm-wide policies and procedures that
are designed to allow the institution to
identify, evaluate, assess, document,
and control the full range of credit,
market, operational, legal, and
reputational risks associated with these
transactions. These policies may be
developed specifically for CSFTs or
included in the set of broader policies
governing the institution generally. A
financial institution operating in foreign
jurisdictions may tailor its policies and
procedures as appropriate to account
for, and comply with, the applicable
laws, regulations, and standards of those
jurisdictions.
A financial institution’s policies and
procedures should establish a clear
framework for the review and approval
of individual CSFTs. These policies and
procedures should set forth the
responsibilities of the personnel
involved in the origination, structuring,
trading, review, approval,
documentation, verification, and
execution of CSFTs. A financial
institution should define what
constitutes a new complex structured
finance product and establish a control
process for the approval of such new
product. An institution’s policies also
should provide for new complex
structured finance products to receive
the approval of all relevant control areas
that are independent of the profit center
before the products are offered to
customers.
Current Actions: The Federal Reserve
proposes to extend, without revision,
the FR 4022 information collection.
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19179
Board of Governors of the Federal Reserve
System, March 30, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016–07544 Filed 4–1–16; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
Board of Governors of the
Federal Reserve System.
ACTION: Notice.
AGENCY:
The Board of Governors of the
Federal Reserve System (Board or
Federal Reserve) invites comment on a
proposal to revise the FR Y–7Q by
collecting fourteen new data items to
monitor compliance with enhanced
prudential standards for foreign banking
organizations (FBOs) adopted pursuant
to Subparts N and O of Regulation YY
(12 CFR part 252). The proposal would
require an FBO with total consolidated
assets of $50 billion or more to report
the new data items in order to
determine whether the FBO meets
capital adequacy standards at the
consolidated level that are consistent
with the Basel capital framework.
On June 15, 1984, the Office of
Management and Budget (OMB)
delegated to the Board 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. In exercising
this delegated authority, the Board is
directed to take every reasonable step to
solicit comment. In determining
whether to approve a collection of
information, the Board will consider all
comments received from the public and
other agencies.
DATES: Comments must be submitted on
or before June 3, 2016.
ADDRESSES: You may submit comments,
identified by FR Y–7N, FR Y–7NS, or FR
Y–7Q 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
number in the subject line of the
message.
• Fax: (202) 452–3819 or (202) 452–
3102.
SUMMARY:
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Federal Register / Vol. 81, No. 64 / Monday, April 4, 2016 / Notices
• 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 MP–500 of the
Board’s Martin Building (20th and C
Streets NW.) 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:
Board Clearance Officer—Nuha
Elmaghrabi—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.
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 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.
SUPPLEMENTARY INFORMATION:
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Request for Comment on Information
Collection Proposal
The Board invites public comment on
the following information collection,
which is being reviewed under
authority delegated by the OMB under
the PRA. 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;
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19:03 Apr 01, 2016
Jkt 238001
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 startup 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, With Revision, of the
Following Report
Report title: Financial Statements of
U.S. Nonbank Subsidiaries Held by
Foreign Banking Organizations,
Abbreviated Financial Statements of
U.S. Nonbank Subsidiaries Held by
Foreign Banking Organizations, and
Capital and Asset Report for Foreign
Banking Organizations.
Agency form number: FR Y–7N, FR
Y–7NS, and FR Y–7Q.
OMB control number: 7100–0125.
Frequency: Quarterly and annually,
beginning with the reporting period
ending on September 30, 2016, and, for
some items, March 31, 2018.
Reporters: Foreign banking
organizations (FBOs).
Estimated annual reporting hours: FR
Y–7N (quarterly): 1,170 hours; FR Y–7N
(annual): 218 hours; FR Y–7NS: 40
hours; FR Y–7Q (quarterly): 1,360 hours;
FR Y–7Q (annual): 32 hours.
Estimated average hours per response:
FR Y–7N (quarterly): 6.8 hours; FR Y–
7N (annual): 6.8 hours; FR Y–7NS: 1
hour; FR Y–7Q (quarterly): 2.5 hours; FR
Y–7Q (annual): 1 hour.
Number of respondents: FR Y–7N
(quarterly): 43; FR Y–7N (annual): 32;
FR Y–7NS: 40; FR Y–7Q (quarterly):
136; FR Y–7Q (annual): 32.
General description of report: The FR
Y–7Q collects consolidated regulatory
capital information from all FBOs either
quarterly or annually. The FR Y–7Q is
filed quarterly by FBOs that have
effectively elected to become U.S.
financial holding companies (FHCs) and
by FBOs that have total consolidated
assets of $50 billion or more, regardless
of FHC status. All other FBOs file the FR
Y–7Q annually. The FR Y–7N and FR
Y–7NS collect financial information for
non-functionally regulated U.S.
nonbank subsidiaries held by FBOs
other than through a U.S. bank holding
company (BHC), FHC, or U.S. bank.
FBOs file the FR Y–7N quarterly or
annually or the FR Y–7NS annually
predominantly based on asset size
thresholds.
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This information collection is
mandatory pursuant to section 5(c) of
the Bank Holding Company Act (12
U.S.C. 1844(c)) and sections 8(c) and 13
of the International Banking Act (12
U.S.C. 3106(c) and 3108)). Section 165
of the Dodd-Frank Act, (12 U.S.C. 5365),
directs the Federal Reserve to establish
enhanced prudential standards for
certain companies, including certain
FBOs. The data may not be confidential
in all cases. However, individual
respondents may request confidential
treatment for any of these reports
pursuant to sections (b)(4) and (b)(6) of
the Freedom of Information Act (5
U.S.C. 522(b)(4) and (b)(6)). The
applicability of these exemptions would
be determined on a case-by-case basis.
In addition, items 8.b and 8.c in Part 1B
of the FR Y–7Q involve disclosure of
capital buffers imposed by an FBO’s
home country supervisor. While some
home country supervisors do not accord
confidential status to that information or
do so only on a case-by-case basis,
others treat this information as
confidential on a blanket basis under
the belief that a more selective
confidential treatment could signal an
FBO’s financial strength or weakness
and could thereby cause substantial
competitive harm. Because the
information on items 8.b and 8.c may or
may not be public depending on the
FBO’s home country, the Federal
Reserve would grant confidential status,
pursuant to FOIA exemption 4, only on
a case-by-case basis.
The Federal Reserve proposes to
revise the FR Y–7Q by collecting
fourteen new data items to monitor
compliance with enhanced prudential
standards for FBOs adopted pursuant to
Subparts N and O of Regulation YY. The
new data items would be used to
determine whether an FBO with total
consolidated assets of $50 billion or
more meets capital adequacy standards
at the consolidated level that are
consistent with the Basel capital
framework. The proposed revision
would be effective September 30, 2016,
and, for some items, March 31, 2018.
Regulation YY requires an FBO with
total consolidated assets of $50 billion
or more to certify to the Federal Reserve
that it meets capital adequacy standards
on a consolidated basis, as established
by its home-country supervisor, that are
consistent with the regulatory capital
framework published by the Basel
Committee on Banking Supervision
(BCBS), as amended from time to time
(Basel capital framework). This
requirement was intended to help
ensure that the consolidated capital base
supporting the activities of U.S.
branches and agencies remains strong,
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Federal Register / Vol. 81, No. 64 / Monday, April 4, 2016 / Notices
and to lessen the degree to which
weaknesses at the consolidated foreign
parent could undermine the financial
strength of its U.S. operations.
The proposal would require an FBO
with total consolidated assets of $50
billion or more to complete a new
section, Part 1B, effective September 30,
2016 (with three of the proposed items
effective March 31, 2018). Proposed Part
1B would contain 14 items related to
home country regulatory capital ratios
that would be reported on a quarterly
basis. The value of each of these items
would be calculated on a consolidated
basis according to the methodologies
established by the FBO’s home-country
supervisor that are consistent with the
Basel capital framework, as defined in
Regulation YY.1 If the home-country
supervisor has not established capital
adequacy standards consistent with the
Basel capital framework, the value of
these items would be calculated on a
pro-forma basis as if the FBO were
subject to such standards.
The proposed line items that would
be effective September 30, 2016,
include: (1) Common equity tier 1
capital, (2) Additional tier 1 capital, (3)
Tier 1 capital (sum of items 1 and 2), (4)
Tier 2 capital, (5) Total risk-based
capital (sum of items 3 and 4), (6)
Capital conservation buffer, (7)
Countercyclical capital buffer, (8) Other
applicable capital buffer(s) (a) GSIB/
DSIB buffer, (b) Pillar II buffer, (c)
‘‘Other’’ buffer, (9) Compliance with
restrictions on capital distributions and
discretionary bonus payments
associated with a capital buffer.
The proposed line items that would
be effective March 31, 2018, include:
(10) Home country capital measure used
in the numerator of the leverage ratio as
set forth in the Basel capital framework,
(11) Home country exposure measure
used in the denominator of the leverage
ratio as set forth in the Basel capital
framework, (12) Minimum home
country leverage ratio (if different from
the leverage ratio in the Basel capital
framework, as applicable).
Part 1A of the current FR Y–7Q form,
which applies to all FBOs, collects tier
1 capital, total risk-based capital, riskweighted assets, total consolidated
assets and total combined assets of U.S.
operations, net of intercompany
balances and transactions between U.S.
domiciled affiliates, branches, and
agencies, and total U.S. non-branch
assets. While the Federal Reserve does
not propose to change existing items
reported in Part 1A of the FR Y–7Q, the
proposal would modify the instructions
to clarify that an FBO would be required
1 See
12 CFR part 252.143 and 252.154.
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19:03 Apr 01, 2016
Jkt 238001
to report Tier 1 capital and Total riskbased capital only on Part 1B, if the
FBO’s home country methodologies are
consistent with the Basel capital
framework.
The proposal would not revise the
reporting frequency for the FR Y–7Q.
FBOs with total consolidated assets of
less than $50 billion and that are not
FHCs would only file Part 1A on an
annual basis. FBOs who have elected to
become FHCs and do not have $50
billion or more in total consolidated
assets will file Part 1A on a quarterly
basis. FBOs with total consolidated
assets of $50 billion or more would
complete both Part 1A and Part 1B on
a quarterly basis.
As noted above, the Federal Reserve
would propose to determine
confidentiality of the proposed items on
a case-by-case basis. However, the
Federal Reserve notes that some
jurisdictions may treat this information
as confidential on a blanket basis under
the belief that a more selective
confidential treatment could signal an
FBO’s financial strength or weakness
and could thereby cause substantial
competitive harm. The Federal Reserve
seeks comment on whether these items
should qualify for confidential
treatment in all cases, such that treating
this information as confidential on a
blanket basis would be appropriate.
The FR Y–7N and FR Y–7NS are not
being revised at this time. However, the
estimated number of respondents is
expected to decrease as a result of the
designation of U.S. intermediate holding
companies (IHCs) and recent proposed
reporting requirements for the IHCs.2
Board of Governors of the Federal Reserve
System, March 30, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016–07545 Filed 4–1–16; 8:45 am]
BILLING CODE 6210–01–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 numbers to collection of
information requests and requirements
conducted or sponsored by the Board.
AGENCY:
2 81
PO 00000
FR 6265 (February 5, 2016).
Frm 00070
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19181
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 number.
DATES: Comments must be submitted on
or before June 3, 2016.
ADDRESSES: You may submit comments,
identified by FR 1379, FR 2060, or FR
4031 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
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
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Agencies
[Federal Register Volume 81, Number 64 (Monday, April 4, 2016)]
[Notices]
[Pages 19179-19181]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07545]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System (Board or
Federal Reserve) invites comment on a proposal to revise the FR Y-7Q by
collecting fourteen new data items to monitor compliance with enhanced
prudential standards for foreign banking organizations (FBOs) adopted
pursuant to Subparts N and O of Regulation YY (12 CFR part 252). The
proposal would require an FBO with total consolidated assets of $50
billion or more to report the new data items in order to determine
whether the FBO meets capital adequacy standards at the consolidated
level that are consistent with the Basel capital framework.
On June 15, 1984, the Office of Management and Budget (OMB)
delegated to the Board 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. In exercising this delegated authority, the Board is directed to
take every reasonable step to solicit comment. In determining whether
to approve a collection of information, the Board will consider all
comments received from the public and other agencies.
DATES: Comments must be submitted on or before June 3, 2016.
ADDRESSES: You may submit comments, identified by FR Y-7N, FR Y-7NS, or
FR Y-7Q 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
number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
[[Page 19180]]
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 MP-
500 of the Board's Martin Building (20th and C Streets NW.) 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: Board Clearance Officer--Nuha
Elmaghrabi--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.
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 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.
SUPPLEMENTARY INFORMATION:
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. 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 startup 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, With Revision, of the Following Report
Report title: Financial Statements of U.S. Nonbank Subsidiaries
Held by Foreign Banking Organizations, Abbreviated Financial Statements
of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations, and
Capital and Asset Report for Foreign Banking Organizations.
Agency form number: FR Y-7N, FR Y-7NS, and FR Y-7Q.
OMB control number: 7100-0125.
Frequency: Quarterly and annually, beginning with the reporting
period ending on September 30, 2016, and, for some items, March 31,
2018.
Reporters: Foreign banking organizations (FBOs).
Estimated annual reporting hours: FR Y-7N (quarterly): 1,170 hours;
FR Y-7N (annual): 218 hours; FR Y-7NS: 40 hours; FR Y-7Q (quarterly):
1,360 hours; FR Y-7Q (annual): 32 hours.
Estimated average hours per response: FR Y-7N (quarterly): 6.8
hours; FR Y-7N (annual): 6.8 hours; FR Y-7NS: 1 hour; FR Y-7Q
(quarterly): 2.5 hours; FR Y-7Q (annual): 1 hour.
Number of respondents: FR Y-7N (quarterly): 43; FR Y-7N (annual):
32; FR Y-7NS: 40; FR Y-7Q (quarterly): 136; FR Y-7Q (annual): 32.
General description of report: The FR Y-7Q collects consolidated
regulatory capital information from all FBOs either quarterly or
annually. The FR Y-7Q is filed quarterly by FBOs that have effectively
elected to become U.S. financial holding companies (FHCs) and by FBOs
that have total consolidated assets of $50 billion or more, regardless
of FHC status. All other FBOs file the FR Y-7Q annually. The FR Y-7N
and FR Y-7NS collect financial information for non-functionally
regulated U.S. nonbank subsidiaries held by FBOs other than through a
U.S. bank holding company (BHC), FHC, or U.S. bank. FBOs file the FR Y-
7N quarterly or annually or the FR Y-7NS annually predominantly based
on asset size thresholds.
This information collection is mandatory pursuant to section 5(c)
of the Bank Holding Company Act (12 U.S.C. 1844(c)) and sections 8(c)
and 13 of the International Banking Act (12 U.S.C. 3106(c) and 3108)).
Section 165 of the Dodd-Frank Act, (12 U.S.C. 5365), directs the
Federal Reserve to establish enhanced prudential standards for certain
companies, including certain FBOs. The data may not be confidential in
all cases. However, individual respondents may request confidential
treatment for any of these reports pursuant to sections (b)(4) and
(b)(6) of the Freedom of Information Act (5 U.S.C. 522(b)(4) and
(b)(6)). The applicability of these exemptions would be determined on a
case-by-case basis. In addition, items 8.b and 8.c in Part 1B of the FR
Y-7Q involve disclosure of capital buffers imposed by an FBO's home
country supervisor. While some home country supervisors do not accord
confidential status to that information or do so only on a case-by-case
basis, others treat this information as confidential on a blanket basis
under the belief that a more selective confidential treatment could
signal an FBO's financial strength or weakness and could thereby cause
substantial competitive harm. Because the information on items 8.b and
8.c may or may not be public depending on the FBO's home country, the
Federal Reserve would grant confidential status, pursuant to FOIA
exemption 4, only on a case-by-case basis.
The Federal Reserve proposes to revise the FR Y-7Q by collecting
fourteen new data items to monitor compliance with enhanced prudential
standards for FBOs adopted pursuant to Subparts N and O of Regulation
YY. The new data items would be used to determine whether an FBO with
total consolidated assets of $50 billion or more meets capital adequacy
standards at the consolidated level that are consistent with the Basel
capital framework. The proposed revision would be effective September
30, 2016, and, for some items, March 31, 2018.
Regulation YY requires an FBO with total consolidated assets of $50
billion or more to certify to the Federal Reserve that it meets capital
adequacy standards on a consolidated basis, as established by its home-
country supervisor, that are consistent with the regulatory capital
framework published by the Basel Committee on Banking Supervision
(BCBS), as amended from time to time (Basel capital framework). This
requirement was intended to help ensure that the consolidated capital
base supporting the activities of U.S. branches and agencies remains
strong,
[[Page 19181]]
and to lessen the degree to which weaknesses at the consolidated
foreign parent could undermine the financial strength of its U.S.
operations.
The proposal would require an FBO with total consolidated assets of
$50 billion or more to complete a new section, Part 1B, effective
September 30, 2016 (with three of the proposed items effective March
31, 2018). Proposed Part 1B would contain 14 items related to home
country regulatory capital ratios that would be reported on a quarterly
basis. The value of each of these items would be calculated on a
consolidated basis according to the methodologies established by the
FBO's home-country supervisor that are consistent with the Basel
capital framework, as defined in Regulation YY.\1\ If the home-country
supervisor has not established capital adequacy standards consistent
with the Basel capital framework, the value of these items would be
calculated on a pro-forma basis as if the FBO were subject to such
standards.
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\1\ See 12 CFR part 252.143 and 252.154.
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The proposed line items that would be effective September 30, 2016,
include: (1) Common equity tier 1 capital, (2) Additional tier 1
capital, (3) Tier 1 capital (sum of items 1 and 2), (4) Tier 2 capital,
(5) Total risk-based capital (sum of items 3 and 4), (6) Capital
conservation buffer, (7) Countercyclical capital buffer, (8) Other
applicable capital buffer(s) (a) GSIB/DSIB buffer, (b) Pillar II
buffer, (c) ``Other'' buffer, (9) Compliance with restrictions on
capital distributions and discretionary bonus payments associated with
a capital buffer.
The proposed line items that would be effective March 31, 2018,
include: (10) Home country capital measure used in the numerator of the
leverage ratio as set forth in the Basel capital framework, (11) Home
country exposure measure used in the denominator of the leverage ratio
as set forth in the Basel capital framework, (12) Minimum home country
leverage ratio (if different from the leverage ratio in the Basel
capital framework, as applicable).
Part 1A of the current FR Y-7Q form, which applies to all FBOs,
collects tier 1 capital, total risk-based capital, risk-weighted
assets, total consolidated assets and total combined assets of U.S.
operations, net of intercompany balances and transactions between U.S.
domiciled affiliates, branches, and agencies, and total U.S. non-branch
assets. While the Federal Reserve does not propose to change existing
items reported in Part 1A of the FR Y-7Q, the proposal would modify the
instructions to clarify that an FBO would be required to report Tier 1
capital and Total risk-based capital only on Part 1B, if the FBO's home
country methodologies are consistent with the Basel capital framework.
The proposal would not revise the reporting frequency for the FR Y-
7Q. FBOs with total consolidated assets of less than $50 billion and
that are not FHCs would only file Part 1A on an annual basis. FBOs who
have elected to become FHCs and do not have $50 billion or more in
total consolidated assets will file Part 1A on a quarterly basis. FBOs
with total consolidated assets of $50 billion or more would complete
both Part 1A and Part 1B on a quarterly basis.
As noted above, the Federal Reserve would propose to determine
confidentiality of the proposed items on a case-by-case basis. However,
the Federal Reserve notes that some jurisdictions may treat this
information as confidential on a blanket basis under the belief that a
more selective confidential treatment could signal an FBO's financial
strength or weakness and could thereby cause substantial competitive
harm. The Federal Reserve seeks comment on whether these items should
qualify for confidential treatment in all cases, such that treating
this information as confidential on a blanket basis would be
appropriate.
The FR Y-7N and FR Y-7NS are not being revised at this time.
However, the estimated number of respondents is expected to decrease as
a result of the designation of U.S. intermediate holding companies
(IHCs) and recent proposed reporting requirements for the IHCs.\2\
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\2\ 81 FR 6265 (February 5, 2016).
Board of Governors of the Federal Reserve System, March 30,
2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-07545 Filed 4-1-16; 8:45 am]
BILLING CODE 6210-01-P