Regulation Q; Regulatory Capital Rules: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies, 95612-95613 [2016-31371]

Download as PDF 95612 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices [FR Doc. 2016–31386 Filed 12–27–16; 8:45 am] BILLING CODE 8070–01–P FEDERAL MARITIME COMMISSION [Petition No. P4–16] sradovich on DSK3GMQ082PROD with NOTICES Petition of the Coalition for Fair Port Practices for Rulemaking; Notice of Filing and Request for Comments Notice is hereby given that the Coalition for Fair Port Practices (hereinafter Petitioner), has petitioned the Commission pursuant to 46 CFR 502.51 of the Commission’s Rules of Practice and Procedure, to initiate a rulemaking ‘‘to clarify what constitutes ‘just and reasonable rules and practices’ with respect to the assessment of demurrage, detention, and per diem charges by ocean common carriers and marine terminal operators when ports are congested or otherwise inaccessible.’’ Petitioner proposes and provides the text of a proposed rule and submits fifteen verified statements or supporting letters from its members which include ‘‘a broad cross-section of industry stakeholders, including shippers, receivers, motor carriers, port draymen, freight forwarders, 3PLs, and customs brokers.’’ In order for the Commission to make a thorough evaluation of the Petition, interested persons are requested to submit views or arguments in reply to the Petition no later than February 28, 2017. Replies shall consist of an original and 5 copies, be directed to the Assistant Secretary, Federal Maritime Commission, 800 North Capitol Street NW., Washington, DC 20573–0001, and be served on Petitioner’s counsel, Karyn A. Booth, Thompson Hine LLP, 1919 M Street NW., Suite 700, Washington, DC 20036. A PDF copy of the reply must also be sent to secretary@fmc.gov. Include in the email subject line ‘‘Petition No. P4–16.’’ Replies containing confidential information should not be submitted by email. The Commission will provide confidential treatment for identified confidential information to the extent allowed by law. A reply containing confidential information must include: • A transmittal letter requesting confidential treatment that identifies the specific information in the reply for which protection is sought and demonstrates that the information is a trade secret or other confidential research, development, or commercial information. • A confidential copy of the reply, clearly marked ‘‘Confidential- VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 Restricted’’, with the confidential material clearly marked on each page. • A public version of your reply with the confidential information excluded or redacted, marked ‘‘Public Version— confidential materials excluded.’’ The Petition will be posted on the Commission’s Web site at http:// www.fmc.gov/P4-16. Replies filed in response to this Petition also will be posted on the Commission’s Web site at this location. Parties participating in this proceeding may elect to receive service of the Commission’s issuances in this proceeding through email in lieu of service by U.S. mail. A party opting for electronic service shall advise the Office of the Secretary in writing and provide an email address where service can be made. Rachel E. Dickon, Assistant Secretary. [FR Doc. 2016–31356 Filed 12–27–16; 8:45 am] BILLING CODE 6731–AA–P FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than January 11, 2017. A. Federal Reserve Bank of Chicago (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690–1414: 1. James W. Mease, Winterset, Iowa; James W. Mease Profit Sharing & 401(k), Winterset, Iowa; Justin Mease, Ankeny, Iowa; Sue A. Mease, Winterset, Iowa; Jane M. Reed Revocable Trust, Jane M. Reed Trustee, Winterset, Iowa; John B. Reed Revocable Trust, John B. Reed Trustee, Winterset, Iowa; April Schaefer, Cedar Rapids, Iowa; David Trask, Winterset, Iowa; Judith Trask, Winterset, Iowa; Mary Reed Alles, PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 Chillicothe, Missouri; Fred H. Reed, Johnston, Iowa; Honor Joel Sears, Spokane, Washington; as a group acting in concert, to acquire more than 10 percent of the voting shares of Farmers and Merchants Bancorp, and thereby indirectly control Farmers & Merchants State Bank, both in Winterset, Iowa. Board of Governors of the Federal Reserve System, December 22, 2016. Yao-Chin Chao, Assistant Secretary of the Board. [FR Doc. 2016–31360 Filed 12–27–16; 8:45 am] BILLING CODE 6210–01–P FEDERAL RESERVE SYSTEM [Docket No. 1530; RIN 7100 AE 44] Regulation Q; Regulatory Capital Rules: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies Board of Governors of the Federal Reserve System (Board). ACTION: Notice. AGENCY: Under the rule of the Board regarding risk-based capital surcharges for global systemically important bank holding companies (GSIB surcharge rule), the Board is providing notice of the aggregate global indicator amounts for purposes of a calculation that is required under the GSIB surcharge rule for 2016. DATES: Effective: December 28, 2016. FOR FURTHER INFORMATION CONTACT: Juan C. Climent, Manager, (202) 872–7526, or Holly Kirkpatrick, Supervisory Financial Analyst, (202) 452–2796, Division of Supervision and Regulation; or Mark Buresh, Senior Attorney, (202) 452–5270, or Mary Watkins, Attorney, (202) 452–3722, Legal Division. Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. For the hearing impaired only, Telecommunications Device for the Deaf (TDD) users may contact (202) 263–4869. SUPPLEMENTARY INFORMATION: The Board’s GSIB surcharge rule establishes a methodology to identify global systemically important bank holding companies in the United States (GSIBs) based on indicators that are correlated with systemic importance.1 Under the GSIB surcharge rule, a firm must calculate its GSIB score using a specific formula (Method 1). Method 1 uses five equally weighted categories that are correlated with systemic importance— size, interconnectedness, crossjurisdictional activity, substitutability, SUMMARY: 1 See E:\FR\FM\28DEN1.SGM 12 CFR 217.402, 217.404. 28DEN1 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices and complexity—and subdivided into twelve systemic indicators. For each indicator, a firm divides its own measure of each systemic indicator by an aggregate global indicator amount. The firm’s Method 1 score is the sum of its weighted systemic indicator scores expressed in basis points. The GSIB surcharge for the firm is then the higher of the GSIB surcharge determined under Method 1 and a second method that weights size, interconnectedness, crossjurisdictional activity, complexity, and a measure of a firm’s reliance on wholesale funding (instead of substitutability).2 The aggregate global indicator amounts used in the score calculation under Method 1 are based on data collected by the Basel Committee on Banking Supervision (BCBS). The BCBS amounts are determined based on the sum of the systemic indicator scores of the 75 largest U.S. and foreign banking organizations as measured by the BCBS, and any other banking organization that the BCBS includes in its sample total for 95613 that year. The BCBS publicly releases these values, denominated in euros, each year. Pursuant to the GSIB surcharge rule, the Board publishes the aggregate global indicator amounts each year as denominated in U.S. dollars using the euro-dollar exchange rate provided by the BCBS.3 The aggregate global indicator amounts for purposes of the Method 1 score calculation for 2016 under § 217.404(b)(1)(i)(B) of the GSIB surcharge rule are: AGGREGATE GLOBAL INDICATOR AMOUNTS IN U.S. DOLLARS (USD) FOR 2016 Aggregate global indicator amount (in USD) Category Systemic indicator Size ..................................................................................... Interconnectedness ............................................................ Total exposures .................................................................. Intra-financial system assets .............................................. Intra-financial system liabilities ........................................... Securities outstanding ........................................................ Payments activity ............................................................... Assets under custody ......................................................... Underwritten transactions in debt and equity markets ...... Notional amount of over-the-counter (OTC) derivatives .... Trading and available-for-sale (AFS) securities ................. Level 3 assets .................................................................... Cross-jurisdictional claims .................................................. Cross-jurisdictional liabilities .............................................. Substitutability ..................................................................... Complexity .......................................................................... Cross-jurisdictional activity ................................................. Authority: 12 U.S.C. 248(a), 321–338a, 481–486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p–l, 1831w, 1835, 1844(b), 1851, 3904, 3906–3909, 4808, 5365, 5368, 5371. The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below. The applications listed below, as well as other related filings required by the Board, are available for immediate inspection at the Federal Reserve Bank indicated. The applications will also be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Unless otherwise noted, comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than January 23, 2017. A. Federal Reserve Bank of Kansas City (Dennis Denney, Assistant Vice President) 1 Memorial Drive, Kansas City, Missouri 64198–0001: 1. Farmers State Bancshares, Inc., Dodge, Nebraska; to merge with Farmers State Bancshares II, Inc., parent of Farmers State Bank, both in Spencer, Nebraska. B. Federal Reserve Bank of St. Louis (David L. Hubbard, Senior Manager) P.O. Box 442, St. Louis, Missouri 63166–2034. Comments can also be sent electronically to Comments.applications@stls.frb.org: 1. Reliable Community Bancshares, Inc., Perryville, Missouri; to acquire Mid America Banking Corporation, Rolla, Missouri, and thereby indirectly acquire Mid America Bank & Trust Company, Dixon, Missouri. 2. MAB Acquisition Corp., Perryville, Missouri; to become a bank holding company by acquiring Mid America Banking Corporation, Rolla, Missouri, and thereby indirectly acquiring Mid America Bank & Trust Company, Dixon, Missouri. 2 The second method (Method 2) uses similar inputs to those used in Method 1, but replaces the substitutability category with a measure of a firm’s use of short-term wholesale funding. In addition, Method 2 is calibrated differently from Method 1. 3 12 CFR 217.404(b)(1)(i)(B); 80 FR 49082, 49086– 87 (August 14, 2015). See also 81 FR 1948 (January 14, 2016). The indicators provided by the BCBS were converted to U.S. dollars using a euro-dollar exchange rate of 1.0887, which was the daily euro to U.S. dollar spot rate on December 31, 2015 as published by the European Central Bank (available at http://www.ecb.europa.eu/stats/eurofxref/ index.en.html). By order of the Board of Governors of the Federal Reserve System, acting through the Director of the Division of Supervision and Regulation under delegated authority, December 22, 2016. Robert deV. Frierson, Secretary of the Board. [FR Doc. 2016–31371 Filed 12–27–16; 8:45 am] BILLING CODE P FEDERAL RESERVE SYSTEM Formations of, Acquisitions by, and Mergers of Bank Holding Companies sradovich on DSK3GMQ082PROD with NOTICES $79,320,039,989,625 8,816,910,460,396 9,687,826,596,896 13,608,077,367,510 2,463,117,556,410,060 139,725,689,815,229 6,479,589,781,461 606,217,201,548,411 3,543,254,277,404 637,946,551,935 19,333,877,366,660 17,293,028,759,406 VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1

Agencies

[Federal Register Volume 81, Number 249 (Wednesday, December 28, 2016)]
[Notices]
[Pages 95612-95613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31371]


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FEDERAL RESERVE SYSTEM

[Docket No. 1530; RIN 7100 AE 44]


Regulation Q; Regulatory Capital Rules: Risk-Based Capital 
Surcharges for Global Systemically Important Bank Holding Companies

AGENCY: Board of Governors of the Federal Reserve System (Board).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Under the rule of the Board regarding risk-based capital 
surcharges for global systemically important bank holding companies 
(GSIB surcharge rule), the Board is providing notice of the aggregate 
global indicator amounts for purposes of a calculation that is required 
under the GSIB surcharge rule for 2016.

DATES: Effective: December 28, 2016.

FOR FURTHER INFORMATION CONTACT: Juan C. Climent, Manager, (202) 872-
7526, or Holly Kirkpatrick, Supervisory Financial Analyst, (202) 452-
2796, Division of Supervision and Regulation; or Mark Buresh, Senior 
Attorney, (202) 452-5270, or Mary Watkins, Attorney, (202) 452-3722, 
Legal Division. Board of Governors of the Federal Reserve System, 20th 
and C Streets NW., Washington, DC 20551. For the hearing impaired only, 
Telecommunications Device for the Deaf (TDD) users may contact (202) 
263-4869.

SUPPLEMENTARY INFORMATION: The Board's GSIB surcharge rule establishes 
a methodology to identify global systemically important bank holding 
companies in the United States (GSIBs) based on indicators that are 
correlated with systemic importance.\1\ Under the GSIB surcharge rule, 
a firm must calculate its GSIB score using a specific formula (Method 
1). Method 1 uses five equally weighted categories that are correlated 
with systemic importance--size, interconnectedness, cross-
jurisdictional activity, substitutability,

[[Page 95613]]

and complexity--and subdivided into twelve systemic indicators. For 
each indicator, a firm divides its own measure of each systemic 
indicator by an aggregate global indicator amount. The firm's Method 1 
score is the sum of its weighted systemic indicator scores expressed in 
basis points. The GSIB surcharge for the firm is then the higher of the 
GSIB surcharge determined under Method 1 and a second method that 
weights size, interconnectedness, cross-jurisdictional activity, 
complexity, and a measure of a firm's reliance on wholesale funding 
(instead of substitutability).\2\
---------------------------------------------------------------------------

    \1\ See 12 CFR 217.402, 217.404.
    \2\ The second method (Method 2) uses similar inputs to those 
used in Method 1, but replaces the substitutability category with a 
measure of a firm's use of short-term wholesale funding. In 
addition, Method 2 is calibrated differently from Method 1.
---------------------------------------------------------------------------

    The aggregate global indicator amounts used in the score 
calculation under Method 1 are based on data collected by the Basel 
Committee on Banking Supervision (BCBS). The BCBS amounts are 
determined based on the sum of the systemic indicator scores of the 75 
largest U.S. and foreign banking organizations as measured by the BCBS, 
and any other banking organization that the BCBS includes in its sample 
total for that year. The BCBS publicly releases these values, 
denominated in euros, each year. Pursuant to the GSIB surcharge rule, 
the Board publishes the aggregate global indicator amounts each year as 
denominated in U.S. dollars using the euro-dollar exchange rate 
provided by the BCBS.\3\
---------------------------------------------------------------------------

    \3\ 12 CFR 217.404(b)(1)(i)(B); 80 FR 49082, 49086-87 (August 
14, 2015). See also 81 FR 1948 (January 14, 2016). The indicators 
provided by the BCBS were converted to U.S. dollars using a euro-
dollar exchange rate of 1.0887, which was the daily euro to U.S. 
dollar spot rate on December 31, 2015 as published by the European 
Central Bank (available at http://www.ecb.europa.eu/stats/eurofxref/index.en.html).
---------------------------------------------------------------------------

    The aggregate global indicator amounts for purposes of the Method 1 
score calculation for 2016 under Sec.  217.404(b)(1)(i)(B) of the GSIB 
surcharge rule are:

    Aggregate Global Indicator Amounts in U.S. Dollars (USD) for 2016
------------------------------------------------------------------------
                                                     Aggregate global
           Category                Systemic       indicator amount  (in
                                   indicator               USD)
------------------------------------------------------------------------
Size.........................  Total exposures.      $79,320,039,989,625
Interconnectedness...........  Intra-financial         8,816,910,460,396
                                system assets.
                               Intra-financial         9,687,826,596,896
                                system
                                liabilities.
                               Securities             13,608,077,367,510
                                outstanding.
Substitutability.............  Payments            2,463,117,556,410,060
                                activity.
                               Assets under          139,725,689,815,229
                                custody.
                               Underwritten            6,479,589,781,461
                                transactions in
                                debt and equity
                                markets.
Complexity...................  Notional amount       606,217,201,548,411
                                of over-the-
                                counter (OTC)
                                derivatives.
                               Trading and             3,543,254,277,404
                                available-for-
                                sale (AFS)
                                securities.
                               Level 3 assets..          637,946,551,935
Cross-jurisdictional activity  Cross-                 19,333,877,366,660
                                jurisdictional        17,293,028,759,406
                                claims.
                               Cross-
                                jurisdictional
                                liabilities.
------------------------------------------------------------------------


    Authority:  12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 
1818, 1828, 1831n, 1831o, 1831p-l, 1831w, 1835, 1844(b), 1851, 3904, 
3906-3909, 4808, 5365, 5368, 5371.

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Director of the Division of Supervision 
and Regulation under delegated authority, December 22, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-31371 Filed 12-27-16; 8:45 am]
 BILLING CODE P