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 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 (http://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 http://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 (http://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\ http://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