Agency Information Collection Activities: Revision of an Approved Information Collection; Submission for OMB Review; Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions With Total Consolidated Assets of $50 Billion or More Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, 4957-4959 [2018-02060]
Download as PDF
<![CDATA[
Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices
written agreement entered into with the
OCC. Each federal branch or agency
shall maintain a capital equivalency
account and keep records of the amount
of liabilities requiring capital
equivalency coverage in a manner and
form prescribed by the OCC. A foreign
bank’s capital equivalency deposits may
not be reduced in value below the
minimum required for that branch or
agency without the prior approval of the
OCC, but in no event may the value fall
below the statutory minimum.
12 CFR 28.16(c) Deposit-Taking by an
Uninsured Federal Branch—
Application for an Exemption
A foreign bank may apply to the OCC
for an exemption to permit an
uninsured federal branch to accept or
maintain deposit accounts that are not
listed in § 28.16(b). The request should
describe the types, sources, and
estimated amount of such deposits and
explain why the OCC should grant an
exemption, and how the exemption
maintains and furthers the policies
described in § 28.16(a).
sradovich on DSK3GMQ082PROD with NOTICES
12 CFR 28.16(d) Deposit-Taking by an
Uninsured Federal Branch—
Aggregation of Deposits
A foreign bank that has more than one
federal branch in the same state may
aggregate deposits in all of its federal
branches in that state, but exclude
deposits of other branches, agencies, or
wholly owned subsidiaries of the bank.
The federal branch shall compute the
average amount by using the sum of
deposits as of the close of business of
the last 30 calendar days ending with,
and including, the last day of the
calendar quarter, divided by 30. The
federal branch shall maintain records of
the calculation until its next
examination by the OCC.
12 CFR 28.18(c)(1) Recordkeeping and
Reporting—Maintenance of Accounts,
Books, and Records
Each federal branch or agency shall
maintain a set of accounts and records
reflecting its transactions that are
separate from those of the foreign bank
and any other branch or agency. The
federal branch or agency shall keep a set
of accounts and records in English
sufficient to permit the OCC to examine
the condition of the federal branch or
agency and its compliance with
applicable laws and regulations.
12 CFR 28.20(a)(1) Maintenance of
Assets—General Rule
The OCC may require a foreign bank
to hold certain assets in the state in
which its federal branch or agency is
located.
VerDate Sep<11>2014
18:03 Feb 01, 2018
Jkt 244001
12 CFR 28.22(e) Reports of Examination
The federal branch or agency shall
send the OCC certification that all of its
Reports of Examination have been
destroyed or return its Reports of
Examination to the OCC.
Type of Review: Regular.
Affected Public: Businesses or other
for-profit.
Estimated Number of Respondents:
52.
Estimated Total Annual Burden:
2,286.
Frequency of Response: On occasion.
Comments submitted in response to
this notice will be summarized,
included in the request for OMB
approval, and become a matter of public
record. Comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the OCC, including
whether the information has practical
utility;
(b) The accuracy of the OCC’s
estimate of the burden of the collection
of information;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
the collection on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Dated: January 29, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief
Counsel, Office of the Comptroller of the
Currency.
[FR Doc. 2018–02056 Filed 2–1–18; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
Agency Information Collection
Activities: Revision of an Approved
Information Collection; Submission for
OMB Review; Company-Run Annual
Stress Test Reporting Template and
Documentation for Covered
Institutions With Total Consolidated
Assets of $50 Billion or More Under the
Dodd-Frank Wall Street Reform and
Consumer Protection Act
Office of the Comptroller of the
Currency, Treasury (OCC).
ACTION: Notice and request for comment.
AGENCY:
The OCC, as part of its
continuing effort to reduce paperwork
SUMMARY:
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
4957
and respondent burden, invites the
general public and other federal
agencies to take this opportunity to
comment on a continuing information
collection, as required by the Paperwork
Reduction Act of 1995 (PRA).
In accordance with the requirements
of the PRA, the OCC may not conduct
or sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number.
Currently, the OCC is finalizing a
revision to a regulatory reporting
requirement for national banks and
federal savings associations titled,
‘‘Company-Run Annual Stress Test
Reporting Template and Documentation
for Covered Institutions with Total
Consolidated Assets of $50 Billion or
More under the Dodd-Frank Wall Street
Reform and Consumer Protection Act.’’
The OCC also is giving notice that it has
sent the collection to OMB for review.
DATES: Comments must be received by
March 5, 2018.
ADDRESSES: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by
email, if possible. Comments may be
sent to: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, Attention:
1557–0319, 400 7th Street SW, Suite
3E–218, Washington, DC 20219. In
addition, comments may be sent by fax
to (571) 465–4326 or by electronic mail
to prainfo@occ.treas.gov. You may
personally inspect and photocopy
comments at the OCC, 400 7th Street,
SW, Washington, DC 20219. For
security reasons, the OCC requires that
visitors make an appointment to inspect
comments. You may do so by calling
(202) 649–6700 or, for persons who are
deaf or hearing impaired, TTY, (202)
649–5597. Upon arrival, visitors will be
required to present valid governmentissued photo identification and submit
to security screening in order to inspect
and photocopy comments.
All comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
Additionally, please send a copy of
your comments by mail to: OCC Desk
Officer, 1557–0319, U.S. Office of
Management and Budget, 725 17th
Street NW, #10235, Washington, DC
20503, or by email to: oira_submission@
omb.eop.gov.
E:\FR\FM\02FEN1.SGM
02FEN1
4958
Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices
FOR FURTHER INFORMATION CONTACT:
Shaquita Merritt, OCC Clearance
Officer, (202) 649–5490 or, for persons
who are deaf or hearing impaired, TTY,
(202) 649–5597, Legislative and
Regulatory Activities Division, Office of
the Comptroller of the Currency, 400 7th
Street SW, Washington, DC 20219. In
addition, copies of the templates
referenced in this notice can be found
on the OCC’s website under News and
Issuances (https://www.occ.treas.gov/
tools-forms/forms/bank-operations/
stress-test-reporting.html).
The OCC
is requesting comment on the following
revision to an approved information
collection:
Title: Company-Run Annual Stress
Test Reporting Template and
Documentation for Covered Institutions
with Total Consolidated Assets of $50
Billion or More under the Dodd-Frank
Wall Street Reform and Consumer
Protection Act.
OMB Control No.: 1557–0319.
Description: Section 165(i)(2) of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act 1 (Dodd-Frank
Act) requires certain financial
companies, including national banks
and federal savings associations, to
conduct annual stress tests 2 and
requires the primary financial regulatory
agency 3 of those financial companies to
issue regulations implementing the
stress test requirements.4 A national
bank or federal savings association is a
‘‘covered institution’’ and therefore
subject to the stress test requirements if
its total consolidated assets are more
than $10 billion. Under section
165(i)(2), a covered institution is
required to submit to the Board of
Governors of the Federal Reserve
System (Board) and to its primary
financial regulatory agency a report at
such time, in such form, and containing
such information as the primary
financial regulatory agency may
require.5 On October 9, 2012, the OCC
published in the Federal Register a final
rule implementing the section 165(i)(2)
annual stress test requirement.6 This
rule describes the reports and
information collections required to meet
the reporting requirements under
section 165(i)(2). Information collected
will be kept private to the extent
permitted by law.
sradovich on DSK3GMQ082PROD with NOTICES
SUPPLEMENTARY INFORMATION:
1 Public
Law 111–203, 124 Stat. 1376, July 2010.
U.S.C. 5365(i)(2)(A).
3 12 U.S.C. 5301(12).
4 12 U.S.C. 5365(i)(2)(C).
5 12 U.S.C. 5365(i)(2)(B).
6 77 FR 61238 (October 9, 2012) (codified at 12
CFR part 46).
2 12
VerDate Sep<11>2014
18:03 Feb 01, 2018
Jkt 244001
In 2012, the OCC first implemented
the reporting templates referenced in
the final rule. See 77 FR 49485 (August
16, 2012) and 77 FR 66663 (November
6, 2012). The OCC is now revising them
as described below.
The OCC intends to use the data
collected to assess the reasonableness of
the stress test results of covered
institutions and to provide forwardlooking information to the OCC
regarding a covered institution’s capital
adequacy. The OCC also may use the
results of the stress tests to determine
whether additional analytical
techniques and exercises could be
appropriate to identify, measure, and
monitor risks at the covered institution.
The stress test results are expected to
support ongoing improvement in a
covered institution’s stress testing
practices with respect to its internal
assessments of capital adequacy and
overall capital planning.
The OCC recognizes that many
covered institutions with total
consolidated assets of $50 billion or
more are required to submit reports
using Comprehensive Capital Analysis
and Review (CCAR) reporting form FR
Y–14A.7 The OCC also recognizes the
Board has modified the FR Y–14A and,
to the extent practical, the OCC has kept
its reporting requirements consistent
with the Board’s FR Y–14A in order to
minimize burden on covered
institutions.8 The OCC is revising its
reporting requirements to mirror the
Board’s FR Y–14A for covered
institutions with total consolidated
assets of $50 billion or more. In addition
to the changes that parallel the Board’s
changes to the FR Y–14A, the OCC is
also making two other changes. First,
the OCC is modifying the OCC
Supplemental Schedule. Second, the
OCC is allowing federal savings
associations to comply with the
reporting requirements applicable to
subsidiaries of large, noncomplex
holding companies, as defined by the
Board. These changes are described in
more detail below.
Revisions to Reporting Templates That
Mirror Changes by the Board
The revisions to the DFAST–14A
reporting templates consist of the
following:
• Eliminating two schedules, the
Regulatory Capital Transitions Schedule
and Retail Repurchase Exposures
Schedule;
• Adding one item to the
counterparty worksheet of the summary
schedule to collect information of
7 https://www.federalreserve.gov/reportforms.
8 82
PO 00000
FR 59608 (December 15, 2017).
Frm 00065
Fmt 4703
Sfmt 4703
Funding Valuation Adjustments (FVAs)
for firms subject to the Global Market
Shock;
• Modifying instructions to clarify
reporting of ‘‘Credit Loss Portion’’ and
‘‘Non-Credit Loss Portion’’ information
for AFS/HTM worksheets in the
summary schedule.
OCC Supplemental Schedule
In 2017 the OCC introduced a
Supplemental Schedule that collects
additional information not included in
the FR Y–14A. The revisions include
modifications to the OCC Supplemental
Schedule. These modifications to the
Supplemental Schedule consist of
clarifying instructions as well as adding,
deleting, and modifying existing data
items. The total number of items in the
Supplemental Schedule will be reduced
by approximately half, reflecting the
OCC’s commitment to reducing the
reporting burden associated with this
schedule. In particular, the revisions
delete existing data items on Allowance
for Loan and Lease Loss data and
Provisions data. The OCC periodically
reviews its data collection to identify
fields whose collection are no longer
necessary to support the OCC’s
supervisory objectives, and the
allowance and provision fields were
identified for elimination as part of this
review. The revisions also eliminate the
materiality thresholds for the reporting
of certain items. Only national banks
that are subsidiaries of large, complex
firms, as defined by the Board, are
required to complete the Supplemental
Schedule, and the OCC believes that it
is appropriate and manageable for these
larger national banks to report these
items.
Federal Savings Associations
Beginning in 2017, the Board and the
OCC allowed institutions that were
subsidiaries of large, non-complex
holding companies, as defined by the
Board, to comply with simplified
reporting requirements and not
complete certain subschedules of the FR
Y–14A and DFAST–14A reporting
forms. The revisions allow federal
savings associations that qualify as over
$50 billion covered institutions to
comply with these simplified reporting
requirements.
Savings and loan holding companies
are not currently required to submit the
Board’s FR Y–14A reporting forms.
Similarly, the Board’s capital plan rule
includes a definition for ‘‘large and
noncomplex bank holding compan[ies]’’
but does not include a parallel
definition for savings and loan holding
companies. Accordingly, savings and
loan holding companies and federal
E:\FR\FM\02FEN1.SGM
02FEN1
Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
savings associations that have the same
characteristics as other large and
noncomplex firms would not
technically qualify for the simplified
reporting requirements. The revisions
modify the DFAST–14A reporting forms
and instructions to provide that all
federal savings associations may comply
with these simplified reporting
requirements. This change promotes
parity between national banks and
federal savings associations that have
similar size profiles and economic
characteristics.
Response to Comments
The OCC received one comment from
a trade association. The commenter
suggested that the effective date for
changes to the OCC reporting templates
align with changes to the Board’s
reporting forms. The commenter also
suggested that there should be a
minimum of six months between the
publication of final changes to the
reporting templates and the effective
date of the changes. According to the
commenter, it is important to factor in
the amount of time necessary to resolve
clarifying questions.
The OCC recognizes the challenges
with implementing changes in a timely
and controlled manner. The OCC
continues to balance the need to collect
additional information with the
objective of providing as much time as
is feasible in advance of
implementation. With respect to the
changes in this notice, the OCC has
sought to align effective dates for
reporting requirements to the extent
practical with synonymous changes to
the Board’s Y–14A. For example, the
OCC is eliminating the Regulatory
Capital Transitions Schedule and the
Retail Repurchase Schedule to parallel
the Board’s changes to the Y–14A. The
addition of one item to the counterparty
worksheet to collect information on
FVAs is consistent with changes made
by the Board. The OCC believes that
many of the reporting template changes
are either burden-neutral or burdenreducing. In addition to eliminating the
two schedules referenced above, the
OCC is also reducing the number of data
items in the Supplemental Schedule by
approximately half. The OCC
continually seeks to clarify and improve
the DFAST–14A reporting instructions;
nevertheless, as is the case with all
reporting templates, there will always
be clarifying questions from the
industry, and the OCC seeks to respond
to questions in a timely manner.
The commenter also suggested that
the technical instructions accompanying
any changes in the reporting templates
be subject to public notice and
VerDate Sep<11>2014
18:03 Feb 01, 2018
Jkt 244001
comment. The OCC will continue to
publish technical instructions as early
as feasible. The technical changes do
not alter the burden associated with the
reporting forms and do not impose
additional requirements. The technical
instructions provide procedures for the
submission of DFAST–14A data,
covering matters such as file format and
other technical specifications. While the
OCC publishes the technical
instructions as early as possible, the
OCC and the Board have historically not
published the technical instructions for
notice and comment.
The commenter also questioned the
need for the OCC Supplemental
Schedule. The commenter suggested
that the Supplemental Schedule did not
serve a supervisory purpose. The
commenter also opposed the
elimination of the materiality thresholds
for certain items, which the commenter
believed would increase the reporting
burden.
The OCC considers those items
included in the OCC Supplemental
Schedule as material risks that are
necessary for monitoring and assessing
a covered institution’s capital adequacy
and capital planning process. By
requiring only subsidiaries of large,
complex firms, as defined by the Board,
to complete this schedule, these
requirements now align with reporting
exceptions for a number of summary
and operational risk subschedules. To
minimize reporting burden the OCC has
reduced the number of Supplemental
Schedule reporting items in half as part
of its process to continually ensure that
only key risk elements are included
within this schedule. As these items
represent key risks, relatively smaller
amounts of exposures within individual
firms could represent material aggregate
risks to the banking system. Therefore,
the OCC has substituted materiality
thresholds for reporting exemptions
based on the size and complexity of the
parent holding company, thereby
aligning the reporting exceptions with a
number of summary and operational
risk subschedules.
Regarding data collection challenges
posed by the Supplemental Schedule for
covered institutions, as noted in the
instructions, covered institutions that
cannot use existing models and
methodologies to furnish requested
information on the OCC Supplemental
Schedule may use allocations, expert
judgment, or other methods for
projections of balances, losses, and
allowances if data is not available at the
requested level of granularity. Covered
institutions should supply appropriate
documentation explaining their
approach.
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
4959
Other Changes
The OCC proposed to eliminate
references to the term ‘‘extraordinary
items’’ to align with Federal Accounting
Standards Board (FASB) Subtopic 255–
30. The Board has decided to delay this
change with respect to its FR Y–14A;
therefore, in order to promote
consistency between the OCC DFAST–
14A and the FR Y–14A, the OCC will
delay this change until further notice.
Type of Review: Revision.
Affected Public: Businesses or other
for-profit.
Estimated Number of Respondents:
26.
Estimated Total Annual Burden:
13,949 hours.
The OCC believes that the systems
covered institutions use to prepare the
FR Y–14 reporting templates to submit
to the Board will also be used to prepare
the reporting templates described in this
notice. Comments submitted in
response to this notice will be
summarized and included in the request
for OMB approval. All comments will
become a matter of public record.
Comments continue to be invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
OCC, including whether the information
has practical utility;
(b) The accuracy of the OCC’s
estimate of the burden of the collection
of information;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
the collection on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Dated: January 29, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief
Counsel.
[FR Doc. 2018–02060 Filed 2–1–18; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
Agency Information Collection
Activities: Information Collection
Renewal; Comment Request;
Customer Complaint Form
Office of the Comptroller of the
Currency (OCC), Treasury.
AGENCY:
E:\FR\FM\02FEN1.SGM
02FEN1
]]>Agencies
[Federal Register Volume 83, Number 23 (Friday, February 2, 2018)]
[Notices]
[Pages 4957-4959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-02060]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Revision of an Approved
Information Collection; Submission for OMB Review; Company-Run Annual
Stress Test Reporting Template and Documentation for Covered
Institutions With Total Consolidated Assets of $50 Billion or More
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act
AGENCY: Office of the Comptroller of the Currency, Treasury (OCC).
ACTION: Notice and request for comment.
-----------------------------------------------------------------------
SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites the general public and other federal
agencies to take this opportunity to comment on a continuing
information collection, as required by the Paperwork Reduction Act of
1995 (PRA).
In accordance with the requirements of the PRA, the OCC may not
conduct or sponsor, and the respondent is not required to respond to,
an information collection unless it displays a currently valid Office
of Management and Budget (OMB) control number.
Currently, the OCC is finalizing a revision to a regulatory
reporting requirement for national banks and federal savings
associations titled, ``Company-Run Annual Stress Test Reporting
Template and Documentation for Covered Institutions with Total
Consolidated Assets of $50 Billion or More under the Dodd-Frank Wall
Street Reform and Consumer Protection Act.'' The OCC also is giving
notice that it has sent the collection to OMB for review.
DATES: Comments must be received by March 5, 2018.
ADDRESSES: Because paper mail in the Washington, DC area and at the OCC
is subject to delay, commenters are encouraged to submit comments by
email, if possible. Comments may be sent to: Legislative and Regulatory
Activities Division, Office of the Comptroller of the Currency,
Attention: 1557-0319, 400 7th Street SW, Suite 3E-218, Washington, DC
20219. In addition, comments may be sent by fax to (571) 465-4326 or by
electronic mail to [email protected]. You may personally inspect
and photocopy comments at the OCC, 400 7th Street, SW, Washington, DC
20219. For security reasons, the OCC requires that visitors make an
appointment to inspect comments. You may do so by calling (202) 649-
6700 or, for persons who are deaf or hearing impaired, TTY, (202) 649-
5597. Upon arrival, visitors will be required to present valid
government-issued photo identification and submit to security screening
in order to inspect and photocopy comments.
All comments received, including attachments and other supporting
materials, are part of the public record and subject to public
disclosure. Do not include any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.
Additionally, please send a copy of your comments by mail to: OCC
Desk Officer, 1557-0319, U.S. Office of Management and Budget, 725 17th
Street NW, #10235, Washington, DC 20503, or by email to:
[email protected].
[[Page 4958]]
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance
Officer, (202) 649-5490 or, for persons who are deaf or hearing
impaired, TTY, (202) 649-5597, Legislative and Regulatory Activities
Division, Office of the Comptroller of the Currency, 400 7th Street SW,
Washington, DC 20219. In addition, copies of the templates referenced
in this notice can be found on the OCC's website under News and
Issuances (https://www.occ.treas.gov/tools-forms/forms/bank-operations/stress-test-reporting.html).
SUPPLEMENTARY INFORMATION: The OCC is requesting comment on the
following revision to an approved information collection:
Title: Company-Run Annual Stress Test Reporting Template and
Documentation for Covered Institutions with Total Consolidated Assets
of $50 Billion or More under the Dodd-Frank Wall Street Reform and
Consumer Protection Act.
OMB Control No.: 1557-0319.
Description: Section 165(i)(2) of the Dodd-Frank Wall Street Reform
and Consumer Protection Act \1\ (Dodd-Frank Act) requires certain
financial companies, including national banks and federal savings
associations, to conduct annual stress tests \2\ and requires the
primary financial regulatory agency \3\ of those financial companies to
issue regulations implementing the stress test requirements.\4\ A
national bank or federal savings association is a ``covered
institution'' and therefore subject to the stress test requirements if
its total consolidated assets are more than $10 billion. Under section
165(i)(2), a covered institution is required to submit to the Board of
Governors of the Federal Reserve System (Board) and to its primary
financial regulatory agency a report at such time, in such form, and
containing such information as the primary financial regulatory agency
may require.\5\ On October 9, 2012, the OCC published in the Federal
Register a final rule implementing the section 165(i)(2) annual stress
test requirement.\6\ This rule describes the reports and information
collections required to meet the reporting requirements under section
165(i)(2). Information collected will be kept private to the extent
permitted by law.
---------------------------------------------------------------------------
\1\ Public Law 111-203, 124 Stat. 1376, July 2010.
\2\ 12 U.S.C. 5365(i)(2)(A).
\3\ 12 U.S.C. 5301(12).
\4\ 12 U.S.C. 5365(i)(2)(C).
\5\ 12 U.S.C. 5365(i)(2)(B).
\6\ 77 FR 61238 (October 9, 2012) (codified at 12 CFR part 46).
---------------------------------------------------------------------------
In 2012, the OCC first implemented the reporting templates
referenced in the final rule. See 77 FR 49485 (August 16, 2012) and 77
FR 66663 (November 6, 2012). The OCC is now revising them as described
below.
The OCC intends to use the data collected to assess the
reasonableness of the stress test results of covered institutions and
to provide forward-looking information to the OCC regarding a covered
institution's capital adequacy. The OCC also may use the results of the
stress tests to determine whether additional analytical techniques and
exercises could be appropriate to identify, measure, and monitor risks
at the covered institution. The stress test results are expected to
support ongoing improvement in a covered institution's stress testing
practices with respect to its internal assessments of capital adequacy
and overall capital planning.
The OCC recognizes that many covered institutions with total
consolidated assets of $50 billion or more are required to submit
reports using Comprehensive Capital Analysis and Review (CCAR)
reporting form FR Y-14A.\7\ The OCC also recognizes the Board has
modified the FR Y-14A and, to the extent practical, the OCC has kept
its reporting requirements consistent with the Board's FR Y-14A in
order to minimize burden on covered institutions.\8\ The OCC is
revising its reporting requirements to mirror the Board's FR Y-14A for
covered institutions with total consolidated assets of $50 billion or
more. In addition to the changes that parallel the Board's changes to
the FR Y-14A, the OCC is also making two other changes. First, the OCC
is modifying the OCC Supplemental Schedule. Second, the OCC is allowing
federal savings associations to comply with the reporting requirements
applicable to subsidiaries of large, noncomplex holding companies, as
defined by the Board. These changes are described in more detail below.
---------------------------------------------------------------------------
\7\ https://www.federalreserve.gov/reportforms.
\8\ 82 FR 59608 (December 15, 2017).
---------------------------------------------------------------------------
Revisions to Reporting Templates That Mirror Changes by the Board
The revisions to the DFAST-14A reporting templates consist of the
following:
Eliminating two schedules, the Regulatory Capital
Transitions Schedule and Retail Repurchase Exposures Schedule;
Adding one item to the counterparty worksheet of the
summary schedule to collect information of Funding Valuation
Adjustments (FVAs) for firms subject to the Global Market Shock;
Modifying instructions to clarify reporting of ``Credit
Loss Portion'' and ``Non-Credit Loss Portion'' information for AFS/HTM
worksheets in the summary schedule.
OCC Supplemental Schedule
In 2017 the OCC introduced a Supplemental Schedule that collects
additional information not included in the FR Y-14A. The revisions
include modifications to the OCC Supplemental Schedule. These
modifications to the Supplemental Schedule consist of clarifying
instructions as well as adding, deleting, and modifying existing data
items. The total number of items in the Supplemental Schedule will be
reduced by approximately half, reflecting the OCC's commitment to
reducing the reporting burden associated with this schedule. In
particular, the revisions delete existing data items on Allowance for
Loan and Lease Loss data and Provisions data. The OCC periodically
reviews its data collection to identify fields whose collection are no
longer necessary to support the OCC's supervisory objectives, and the
allowance and provision fields were identified for elimination as part
of this review. The revisions also eliminate the materiality thresholds
for the reporting of certain items. Only national banks that are
subsidiaries of large, complex firms, as defined by the Board, are
required to complete the Supplemental Schedule, and the OCC believes
that it is appropriate and manageable for these larger national banks
to report these items.
Federal Savings Associations
Beginning in 2017, the Board and the OCC allowed institutions that
were subsidiaries of large, non-complex holding companies, as defined
by the Board, to comply with simplified reporting requirements and not
complete certain subschedules of the FR Y-14A and DFAST-14A reporting
forms. The revisions allow federal savings associations that qualify as
over $50 billion covered institutions to comply with these simplified
reporting requirements.
Savings and loan holding companies are not currently required to
submit the Board's FR Y-14A reporting forms. Similarly, the Board's
capital plan rule includes a definition for ``large and noncomplex bank
holding compan[ies]'' but does not include a parallel definition for
savings and loan holding companies. Accordingly, savings and loan
holding companies and federal
[[Page 4959]]
savings associations that have the same characteristics as other large
and noncomplex firms would not technically qualify for the simplified
reporting requirements. The revisions modify the DFAST-14A reporting
forms and instructions to provide that all federal savings associations
may comply with these simplified reporting requirements. This change
promotes parity between national banks and federal savings associations
that have similar size profiles and economic characteristics.
Response to Comments
The OCC received one comment from a trade association. The
commenter suggested that the effective date for changes to the OCC
reporting templates align with changes to the Board's reporting forms.
The commenter also suggested that there should be a minimum of six
months between the publication of final changes to the reporting
templates and the effective date of the changes. According to the
commenter, it is important to factor in the amount of time necessary to
resolve clarifying questions.
The OCC recognizes the challenges with implementing changes in a
timely and controlled manner. The OCC continues to balance the need to
collect additional information with the objective of providing as much
time as is feasible in advance of implementation. With respect to the
changes in this notice, the OCC has sought to align effective dates for
reporting requirements to the extent practical with synonymous changes
to the Board's Y-14A. For example, the OCC is eliminating the
Regulatory Capital Transitions Schedule and the Retail Repurchase
Schedule to parallel the Board's changes to the Y-14A. The addition of
one item to the counterparty worksheet to collect information on FVAs
is consistent with changes made by the Board. The OCC believes that
many of the reporting template changes are either burden-neutral or
burden-reducing. In addition to eliminating the two schedules
referenced above, the OCC is also reducing the number of data items in
the Supplemental Schedule by approximately half. The OCC continually
seeks to clarify and improve the DFAST-14A reporting instructions;
nevertheless, as is the case with all reporting templates, there will
always be clarifying questions from the industry, and the OCC seeks to
respond to questions in a timely manner.
The commenter also suggested that the technical instructions
accompanying any changes in the reporting templates be subject to
public notice and comment. The OCC will continue to publish technical
instructions as early as feasible. The technical changes do not alter
the burden associated with the reporting forms and do not impose
additional requirements. The technical instructions provide procedures
for the submission of DFAST-14A data, covering matters such as file
format and other technical specifications. While the OCC publishes the
technical instructions as early as possible, the OCC and the Board have
historically not published the technical instructions for notice and
comment.
The commenter also questioned the need for the OCC Supplemental
Schedule. The commenter suggested that the Supplemental Schedule did
not serve a supervisory purpose. The commenter also opposed the
elimination of the materiality thresholds for certain items, which the
commenter believed would increase the reporting burden.
The OCC considers those items included in the OCC Supplemental
Schedule as material risks that are necessary for monitoring and
assessing a covered institution's capital adequacy and capital planning
process. By requiring only subsidiaries of large, complex firms, as
defined by the Board, to complete this schedule, these requirements now
align with reporting exceptions for a number of summary and operational
risk subschedules. To minimize reporting burden the OCC has reduced the
number of Supplemental Schedule reporting items in half as part of its
process to continually ensure that only key risk elements are included
within this schedule. As these items represent key risks, relatively
smaller amounts of exposures within individual firms could represent
material aggregate risks to the banking system. Therefore, the OCC has
substituted materiality thresholds for reporting exemptions based on
the size and complexity of the parent holding company, thereby aligning
the reporting exceptions with a number of summary and operational risk
subschedules.
Regarding data collection challenges posed by the Supplemental
Schedule for covered institutions, as noted in the instructions,
covered institutions that cannot use existing models and methodologies
to furnish requested information on the OCC Supplemental Schedule may
use allocations, expert judgment, or other methods for projections of
balances, losses, and allowances if data is not available at the
requested level of granularity. Covered institutions should supply
appropriate documentation explaining their approach.
Other Changes
The OCC proposed to eliminate references to the term
``extraordinary items'' to align with Federal Accounting Standards
Board (FASB) Subtopic 255-30. The Board has decided to delay this
change with respect to its FR Y-14A; therefore, in order to promote
consistency between the OCC DFAST-14A and the FR Y-14A, the OCC will
delay this change until further notice.
Type of Review: Revision.
Affected Public: Businesses or other for-profit.
Estimated Number of Respondents: 26.
Estimated Total Annual Burden: 13,949 hours.
The OCC believes that the systems covered institutions use to
prepare the FR Y-14 reporting templates to submit to the Board will
also be used to prepare the reporting templates described in this
notice. Comments submitted in response to this notice will be
summarized and included in the request for OMB approval. All comments
will become a matter of public record. Comments continue to be invited
on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the OCC, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimate of the burden of the
collection of information;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of the collection on respondents,
including through the use of automated collection techniques or other
forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Dated: January 29, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief Counsel.
[FR Doc. 2018-02060 Filed 2-1-18; 8:45 am]
BILLING CODE 4810-33-P
