Agency Information Collection Activities: Submission for OMB Review; Joint Comment Request, 8149-8153 [2018-03736]

Agencies

• FEDERAL DEPOSIT INSURANCE CORPORATION
• FEDERAL RESERVE SYSTEM
• Office of the Comptroller of the Currency
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 83, Number 37 (Friday, February 23, 2018)]
[Notices]
[Pages 8149-8153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03736]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Submission for OMB 
Review; Joint Comment Request

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of Governors of the Federal Reserve System (Board); and Federal 
Deposit Insurance Corporation (FDIC).

ACTION: Joint notice and request for comment.

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

SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act (PRA) of 1995, the OCC, the Board, and the FDIC (the agencies) 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. On October 6, 
2017, the agencies, under the auspices of the Federal Financial 
Institutions Examination Council (FFIEC), requested

[[Page 8150]]

public comment for 60 days on the implementation of the proposed Annual 
Dodd-Frank Act Company-Run Stress Test Report for Depository 
Institutions and Holding Companies with $10-$50 Billion in Total 
Consolidated Assets (FFIEC 016). The comment period for the proposal 
expired on December 5, 2017, and the agencies did not receive any 
comments. The agencies are now submitting the FFIEC 016, as originally 
proposed, to OMB for review. Subject to OMB approval, the proposed 
FFIEC 016 would take effect for the stress test report due July 31, 
2018.
    The proposed FFIEC 016 would combine the agencies' three separate, 
yet identical, stress test report forms (as described in the 
SUPPLEMENTARY INFORMATION), which are currently approved collections of 
information, into a single new FFIEC report. The respondents for the 
proposed FFIEC 016 are depository institutions and holding companies 
with average total consolidated assets of more than $10 billion, but 
less than $50 billion. As part of their proposed adoption of the new 
FFIEC 016 report, the agencies also are proposing to implement a 
limited number of revisions that would align the report with recent 
changes to the FFIEC 031 and FFIEC 041 Consolidated Reports of 
Condition and Income and the Board's FR Y-9C Consolidated Financial 
Statements for Holding Companies. In addition, the agencies are 
proposing to have institutions provide their Legal Entity Identifier 
(LEI) on the report form, if they already have one. The proposed FFIEC 
016 reporting requirements reflect the company-run stress testing 
requirements promulgated by the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (as reflected in the agencies' current 
information collections).
    The Board, in connection with this proposal, has approved the 
transition of the FR Y-16 (Annual Company-Run Stress Test Report For 
State Member Banks, Bank Holding Companies, and Savings and Loan 
Holding Companies with Total Consolidated Assets Greater Than $10 
Billion and Less Than $50 Billion), which it currently uses to collect 
the annual company-run stress test results, to the FFIEC 016, 
conditioned on the approval of the FFIEC 016 by the OMB. Also in 
connection with the final adoption of the FFIEC 016, the OCC and the 
FDIC are proposing to replace the OCC's DFAST 10-50B (Annual Company-
Run Stress Test Reporting Template and Documentation for Covered 
Institutions with Total Consolidated Assets of $10 Billion to $50 
Billion under the Dodd-Frank Wall Street Reform and Consumer Protection 
Act), and the FDIC's DFAST 10-50 (Company-Run Annual Stress Test 
Reporting Template and Documentation for Covered Institutions with 
Total Consolidated Assets of $10 Billion to $50 Billion under the Dodd-
Frank Wall Street Reform and Consumer Protection Act), respectively, 
with the FFIEC 016.

DATES: Comments must be submitted on or before March 26, 2018.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments, which should refer to the OMB 
control number(s), will be shared among the agencies.
    OCC: You may submit comments, which should refer to ``FFIEC 016,'' 
by any of the following methods:
     Email: [email protected].
     Fax: (571) 465-4326.
     Mail: Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency, 400 7th Street SW, Suite 3E-
218, Washington, DC 20219.
    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.
    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.
    Board: You may submit comments, which should refer to ``FFIEC 
016,'' by any of the following methods:
     Agency Website: https://www.federalreserve.gov. Follow the 
instructions for submitting comments at: https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include reporting 
form number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available from the Board's website at 
https://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room 
3515, 1801 K Street (between 18th and 19th Streets), NW, Washington, DC 
20006, between 9:00 a.m. and 5:00 p.m. on weekdays.
    FDIC: You may submit comments, which should refer to ``FFIEC 016,'' 
by any of the following methods:
     Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC 
website.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include ``FFIEC 016'' in the 
subject line of the message.
     Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3007, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery: Comments may be hand delivered to the guard 
station at the rear of the 550 17th Street Building (located on F 
Street) on business days between 7:00 a.m. and 5:00 p.m.
    Public Inspection: All comments received will be posted without 
change to https://www.fdic.gov/regulations/laws/federal/ including any 
personal information provided. Paper copies of public comments may be 
requested from the FDIC Public Information Center, by telephone at 
(877) 275-3342 or (703) 562-2200.
    Additionally, commenters may send a copy of their comments to the 
OMB desk officer for the agencies by mail to the Office of Information 
and Regulatory Affairs, U.S. Office of Management and Budget, New 
Executive Office Building, Room 10235, 725 17th Street NW, Washington, 
DC 20503; by fax to (202) 395-6974; or by email to 
[email protected].

FOR FURTHER INFORMATION CONTACT: For further information about the 
proposed FFIEC 016 report discussed in this notice, please contact any 
of the agency staff whose names appear below. In addition, a copy of 
the proposed FFIEC 016 reporting form is available on the FFIEC's 
website (https://www.ffiec.gov/ffiec_report_forms.htm).
    OCC: Kevin Korzeniewski, Counsel, (202) 649-5490 or, for persons 
who are

[[Page 8151]]

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.
    Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer, 
(202) 452-3884, Office of the Chief Data Officer, Board of Governors of 
the Federal Reserve System, 20th and C Streets NW, Washington, DC 
20551. Telecommunications Device for the Deaf (TDD) users may call 
(202) 263-4869.
    FDIC: Manuel E. Cabeza, Counsel, (202) 898-3767, Legal Division, 
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, 
DC 20429.

SUPPLEMENTARY INFORMATION: As noted, on October 6, 2017, the agencies 
requested public comment for 60 days on a proposal to implement the 
Annual Dodd-Frank Act Company-Run Stress Test Report for Depository 
Institutions and Holding Companies with $10-$50 Billion in Total 
Consolidated Assets (FFIEC 016).\1\ The agencies did not receive any 
comments on the proposed FFIEC 016 collections of information.
---------------------------------------------------------------------------

    \1\ 82 FR 46887 (October 6, 2017).
---------------------------------------------------------------------------

    The agencies proposed to implement the FFIEC 016 report form to 
replace the following report forms, which are approved collections of 
information: Board's FR Y-16, Annual Company-Run Stress Test Report For 
State Member Banks, Bank Holding Companies, and Savings and Loan 
Holding Companies with Total Consolidated Assets Greater Than $10 
Billion and Less Than $50 Billion (OMB Control No. 7100-0356); FDIC's 
DFAST 10-50, Company-Run Annual Stress Test Reporting Template and 
Documentation for Covered Institutions with Total Consolidated Assets 
of $10 Billion to $50 Billion under the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (OMB Control No. 3064-0187); and OCC's 
DFAST 10-50B, Annual Company-Run Stress Test Reporting Template and 
Documentation for Covered Institutions with Total Consolidated Assets 
of $10 Billion to $50 Billion under the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (OMB Control No. 1557-0311). These existing 
report forms collect identical information; however, the respondent 
institutions for each form vary based on each agency's supervisory 
jurisdiction.
    Report Title: Annual Dodd-Frank Act Company-Run Stress Test Report 
for Depository Institutions and Holding Companies with $10-$50 Billion 
in Total Consolidated Assets.
    Form Number: FFIEC 016.
    Frequency of Response: Annually.
    Affected Public: Business or other for-profit.

OCC

    OMB Control No.: 1557-0311.
    Estimated Number of Respondents: Initial Stress Test: 1 national 
bank or federal savings association. Ongoing Annual Stress Test: 36 
national banks and federal savings associations.
    Estimated Time per Response: Initial Stress Test: 2,000 burden 
hours per response. Ongoing Annual Stress Test: 469 burden hours per 
response.
    Estimated Total Annual Burden: Initial Stress Test: 2,000 burden 
hours to file. Ongoing Annual Stress Test: 16,884 burden hours to file. 
Total: 18,884 burden hours to file.

Board

    OMB Control No.: 7100-0356.
    Estimated Number of Respondents: Initial Stress Test: 11 state 
member banks, bank holding companies, and savings and loan holding 
companies. Ongoing Annual Stress Test: 64 state member banks, bank 
holding companies, and savings and loan holding companies.
    Estimated Time per Response: Initial Stress Test: 2,000 burden 
hours per response. Ongoing Annual Stress Test: 469 burden hours per 
response.
    Estimated Total Annual Burden: Initial Stress Test: 22,000 burden 
hours to file. Ongoing Annual Stress Test: 30,016 burden hours to file. 
Total: 52,016 burden hours to file.

FDIC

    OMB Control No.: 3064-0187.
    Estimated Number of Respondents: Initial Stress Test: 2 insured 
state nonmember banks and savings associations. Ongoing Annual Stress 
Test: 22 insured state nonmember banks and state savings associations.
    Estimated Time per Response: Initial Stress Test: 2,000 burden 
hours per response. Ongoing Annual Stress Test: 469 burden hours per 
response.
    Estimated Total Annual Burden: Initial Stress Test: 4,000 burden 
hours to file. Ongoing Annual Stress Test: 10,318 burden hours to file. 
Total: 14,318 burden hours to file.
    Type of Review: OCC and FDIC: Revision and extension of currently 
approved collections. Board: Proposal for a new collection of 
information and discontinuation of a currently approved collection.

General Description of Reports

    The proposed FFIEC 016 information collections would be mandatory 
for institutions with average total consolidated assets of more than 
$10 billion, but less than $50 billion. The FFIEC 016 implements the 
reporting of the annual company-run stress testing required of such 
institutions under section 165(i)(2) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act, Public Law 111-203 (Dodd-Frank 
Act), and each agency's implementing regulation.\2\ All data reported 
in the proposed FFIEC 016 would be given confidential treatment under 5 
U.S.C. 552(b)(8) because they are contained in or related to operating 
or condition reports prepared for the use of agencies responsible for 
the regulation or supervision of financial institutions.
---------------------------------------------------------------------------

    \2\ 12 CFR part 46 (OCC); 12 CFR part 252, subpart B (Board); 12 
CFR part 325, subpart C (FDIC).
---------------------------------------------------------------------------

Abstract

    The FFIEC 016 report would be submitted by institutions supervised 
by the agencies with average total consolidated assets of more than $10 
billion, but less than $50 billion, to report their company-run stress 
test results. These reports collect quantitative projections of balance 
sheet assets and liabilities, income, losses, and capital across three 
scenarios (baseline, adverse, and severely adverse) and qualitative 
information on methodologies used to develop these internal 
projections.
    Data received in the agencies' $10-$50 billion annual Dodd-Frank 
Act company-run stress test reports are used in connection with 
supervision and regulation of these institutions to form supervisory 
assessments of the quality of a company's stress-testing process and, 
overall, as part of the broader assessment of a company's capital 
adequacy and risk management process. Data collected in these reports 
provide the agencies with one of many tools available to examiners to 
assist in the analysis and assessment of a company's capital position 
and planning process.

Current Actions

I. Discussion of Proposed FFIEC Report Form

    Each agency has issued rules applicable to the banking 
organizations it supervises with total consolidated assets of more than 
$10 billion, but less than $50 billion, that implement the company-run 
stress testing requirement promulgated by section 165(i)(2) of the 
Dodd-Frank Act.\3\ Under the agencies' respective rules, institutions 
that meet this asset threshold are required to conduct, and report the 
results of, an

[[Page 8152]]

annual stress test using scenarios provided by the agencies.
---------------------------------------------------------------------------

    \3\ 12 CFR part 46 (OCC); 12 CFR part 252, subpart B (Board); 12 
CFR part 325, subpart C (FDIC).
---------------------------------------------------------------------------

    The annual as-of date of the stress test report is December 31, and 
the submission deadline for the report is the following July 31.
    Currently, the agencies maintain separate, yet identical, report 
forms (FR Y-16, FDIC DFAST 10-50, and OCC DFAST 10-50B) for the banks, 
savings associations, and holding companies they supervise to report 
these company-run stress test results. These annual reports collect 
quantitative projections of balance sheet assets and liabilities, 
income, losses, and capital across a range of macroeconomic and 
financial scenarios as well as qualitative supporting information on 
the methodologies and processes used to develop those internal 
projections. As noted, the agencies are proposing to combine these 
separate data collections and designate the combined report as a 
uniform FFIEC data collection. As part of their proposed adoption of 
the new FFIEC 016 report, the agencies also are proposing to change the 
quantitative and qualitative information currently collected in their 
separate, yet identical, report forms to implement a limited number of 
revisions that would align the new report with recent burden-reducing 
changes to the FFIEC 031, FFIEC 041, and the Board's FR Y-9C.\4\ These 
revisions are not expected to change the estimated reporting burden for 
the proposed new FFIEC 016 compared to the estimated reporting burden 
for the agencies' existing stress test report forms.
---------------------------------------------------------------------------

    \4\ FFIEC 031 and FFIEC 041 Consolidated Reports of Condition 
and Income (OMB Control Nos.: OCC, 1557-0081; Board, 7100-0036; and 
FDIC, 3064-0052): See 81 FR 45357 (July 13, 2016) and 82 FR 2444 
(January 9, 2017); FR Y-9C Consolidated Financial Statements for 
Holding Companies (OMB Control No.: Board, 7100-0128): See 81 FR 
62129 (September 8, 2016).
---------------------------------------------------------------------------

    The following revisions to the FFIEC 031, FFIEC 041, and FR Y-9C 
(as applicable) that took effect March 31, 2017, would affect the 
proposed FFIEC 016:
    (1) On the FFIEC 031 and FFIEC 041 Schedule RI, Memorandum item 
14.a, and on the FR Y-9C Schedule HI, Memorandum item 17(a), ``Total 
other-than-temporary impairment losses,'' was removed, but institutions 
continue to report other-than-temporary impairment losses recognized in 
earnings on the FFIEC 031 and FFIEC 041 Schedule RI, Memorandum item 
14, and the FR Y-9C Schedule HI, Memorandum item 17. The agencies 
propose for the new FFIEC 016 report form and instructions to replace 
line item 25, ``Total other-than-temporary impairment losses,'' on each 
Income Statement scenario schedule with ``Other-than-temporary 
impairment losses on held-to-maturity and available-for-sale debt 
securities recognized in earnings'' as defined in FFIEC 031 and FFIEC 
041 Schedule RI, Memorandum item 14, and FR Y-9C Schedule HI, 
Memorandum item 17.
    (2) On the FFIEC 031 and FFIEC 041 Schedule RC-E, Part I, 
Memorandum items 1.c.(1), ``Brokered deposits of less than $100,000,'' 
and 1.c.(2), ``Brokered deposits of $100,000 through $250,000 and 
certain brokered retirement deposit accounts,'' were combined into a 
single item, Memorandum item 1.c, ``Brokered deposits of $250,000 or 
less (fully insured brokered deposits).'' The agencies propose for the 
new FFIEC 016 report form and instructions to align its Balance Sheet 
line items 32 and 33 for retail and wholesale funding calculations, 
respectively, with the updated FFIEC 031 and FFIEC 041 Schedule RC-E, 
Part I, Memorandum item 1.c, ``Brokered deposits of $250,000 or less 
(fully insured brokered deposits).''
    (3) On Schedule RC-M of the FFIEC 031 and FFIEC 041, items for the 
amount of loans covered by FDIC loss-sharing agreements in the 
following loan categories were removed and combined with existing 
Schedule RC-M, item 13.a.(5), ``All other loans and all leases'' 
covered by such agreements: Item 13.a.(2), ``Loans to finance 
agricultural production and other loans to farmers''; item 13.a.(3), 
``Commercial and industrial loans''; item 13.a.(4)(a), ``Credit 
cards''; item 13.a.(4)(b), ``Automobile loans''; and item 13.a.(4)(c), 
``Other (includes revolving credit plans other than credit cards, and 
other consumer loans).'' In order to keep the data collection uniform 
and comparable across types of reporting institutions, the agencies 
propose for the new FFIEC 016 report form and instructions to 
discontinue the deduction of loans covered by FDIC loss-sharing 
agreements from each of the loan categories collected in Balance Sheet 
line items 1 through 13. In addition, in the proposed new FFIEC 016 
report form, existing Balance Sheet line item 14, ``Loans covered by 
FDIC loss-sharing agreements,'' will be retained.
    In addition, the agencies are proposing to have reporting 
institutions provide their LEI on the FFIEC 016 report form, if they 
have one. The LEI is a 20-digit alpha-numeric code that uniquely 
identifies entities that engage in financial transactions. The recent 
financial crisis spurred the development of a Global LEI System 
(GLEIS). Internationally, regulators and market participants have 
recognized the importance of the LEI as a key improvement in financial 
data systems. The Group of Twenty (G-20) nations directed the Financial 
Stability Board (FSB) to lead the coordination of international 
regulatory work and deliver concrete recommendations on the GLEIS by 
mid-2012, which in turn were endorsed by the G-20 later that same year. 
In January 2013, the LEI Regulatory Oversight Committee (ROC), 
including participation by regulators from around the world, was 
established to oversee the GLEIS on an interim basis. With the 
establishment of the full Global LEI Foundation in 2014, the ROC 
continues to review and develop broad policy standards for LEIs. The 
OCC, the Board, and the FDIC are all members of the ROC.
    The LEI system is designed to facilitate several financial 
stability objectives, including the provision of higher quality and 
more accurate financial data. In the United States, the Financial 
Stability Oversight Council (FSOC) has recommended that regulators and 
market participants continue to work together to improve the quality 
and comprehensiveness of financial data both nationally and globally. 
In this regard, the FSOC also has recommended that its member agencies 
promote the use of the LEI in reporting requirements and rulemakings, 
where appropriate.\5\
---------------------------------------------------------------------------

    \5\ Financial Stability Oversight Council 2015 Annual Report, 
page 14, https://www.treasury.gov/initiatives/fsoc/studies-reports/Documents/2015%20FSOC%20Annual%20Report.pdf.
---------------------------------------------------------------------------

    With respect to the FFIEC 016, the agencies are proposing to have 
reporting institutions provide their LEI on the cover page of this new 
report once it is implemented, if a reporting institution has an LEI. A 
reporting institution that does not have an LEI would not be required 
to obtain one for purposes of reporting it on the FFIEC 016.
    The uniform FFIEC 016 report would be collected in an electronic 
format using file specifications and formats determined by the 
agencies, as prescribed in the Federal Reserve System's Reporting 
Central application. The agencies believe that developing a uniform 
report under the FFIEC reporting structure will promote uniform 
standards and reporting across the agencies, which is consistent with 
the function of the FFIEC.\6\ The proposed FFIEC 016 information 
collections would satisfy each agency's company-run stress-testing 
requirements, while ensuring consistency and comparability of the

[[Page 8153]]

stress-testing information across institutions. The change also would 
ensure that future collections of this information remain uniform 
across the agencies.
---------------------------------------------------------------------------

    \6\ See 12 U.S.C. 3305(c).
---------------------------------------------------------------------------

    With OMB approval, the first annual filing deadline for the FFIEC 
016 report form would be July 31, 2018, using information as of 
December 31, 2017.

II. Request for Comment

    Public comment is requested on all aspects of this joint notice. 
Comments are specifically invited on:
    (a) Whether the collections of information that are the subject of 
this notice are necessary for the proper performance of the agencies' 
functions, including whether the information has practical utility;
    (b) The accuracy of the agencies' estimates of the burden of the 
information collections as they are proposed to be revised, including 
the validity of the methodology and assumptions used;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of information collections 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 the information.

    Comments submitted in response to the joint notice will be shared 
among the agencies. All comments will become a matter of public record.

    Dated: February 15, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief Counsel, Office of the 
Comptroller of the Currency.
    Board of Governors of the Federal Reserve System, February 12, 
2018.
Ann E. Misback,
Secretary of the Board.
    Dated at Washington, DC, on February 12, 2018.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018-03736 Filed 2-22-18; 8:45 am]
 BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P