Proposed Agency Information Collection Activities; Comment Request, 19179-19181 [2016-07545]

Download as PDF Federal Register / Vol. 81, No. 64 / Monday, April 4, 2016 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES 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 VerDate Sep<11>2014 19:03 Apr 01, 2016 Jkt 238001 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. PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 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: E:\FR\FM\04APN1.SGM 04APN1 19180 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: mstockstill on DSK4VPTVN1PROD with NOTICES 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; VerDate Sep<11>2014 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. PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 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, E:\FR\FM\04APN1.SGM 04APN1 mstockstill on DSK4VPTVN1PROD with NOTICES 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. VerDate Sep<11>2014 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 Fmt 4703 Sfmt 4703 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 E:\FR\FM\04APN1.SGM 04APN1

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]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice.

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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.
---------------------------------------------------------------------------

    \1\ See 12 CFR part 252.143 and 252.154.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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
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