Proposed Agency Information Collection Activities; Comment Request, 53248-53250 [2018-22914]
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53248
Federal Register / Vol. 83, No. 204 / Monday, October 22, 2018 / Notices
TABLE IV—TEST INFORMATION RECEIVED FROM 7/1/2018 TO 7/31/2018—Continued
Case No.
Received date
P–16–0438 ......
7/10/2018
P–17–0187 ......
7/13/2018
SN–18–0003 ...
P–17–0257 ......
P–18–0230 ......
7/13/2018
7/18/2018
7/18/2018
P–15–0583 ......
7/19/2018
P–18–0036 ......
7/19/2018
Type of test information
Chemical substance
Acrolein Cyanohydrin-O-Acetate (ACA) TSCA Workplace Exposure Task and Personnel Protective
Equipment Testing, Task Monitoring, PPE sampling, Testing to determine the Effective Organic
Vapor Analyzer Response Factor and Detection
Limit for ACA.
Primary Skin Irritation Test ..........................................
Metals Removal Testing ..............................................
Dustiness Testing using the Vortex Shaker ................
Water Solubility Test (OECD 105) Bovine Corneal
Opacity and Permeability Test (OECD 437).
Anaerobic and Aerobic Aquatic Metabolism Toxicity
data (OECD 308).
Skin Sensitization Study (OECD 406) .........................
If you are interested in information
that is not included in these tables, you
may contact EPA’s technical
information contact or general
information contact as described under
FOR FURTHER INFORMATION CONTACT to
access additional non-CBI information
that may be available.
(S) 3-Butenenitrile, 2-(acetyloxy).
(G) Polymer with benzoic acid tetra halogen hydroxy
tetrahalogen oxo H xanthenyl alkenylaryl alkyl
ester alkalai metal salt, butyl-2-propenoate, ethenyl
neodecanoate, methyl-2-methyl-2- propenoate and
2-methyl-2-propenoic acid.
(S) Lithium nickel oxide (LiNiO2).
(S) Single Walled Carbon Nanotubes.
(S) Waxes and Waxy substances, rice bran, oxidized,
calcium salts.
(G) Butanedioic acid, alkyl amine, dimethylbutyl
ester.
(G) Siloxanes and Silicones, di-Me, 3-[3-carboxy-2(or
3)-(octenyl)-1-oxopropoxy]propyl group-terminated.
Clerk, at (202) 694–1040, at least 72
hours prior to the meeting date.
Dayna C. Brown,
Secretary and Clerk of the Commission.
[FR Doc. 2018–23152 Filed 10–18–18; 4:15 pm]
BILLING CODE 6715–01–P
Authority: 15 U.S.C. 2601 et seq.
Dated: October 11, 2018.
Pamela Myrick,
Director, Information Management Division,
Office of Pollution Prevention and Toxics.
FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
[FR Doc. 2018–23004 Filed 10–19–18; 8:45 am]
Board of Governors of the
Federal Reserve System.
ACTION: Notice, request for comment.
AGENCY:
BILLING CODE 6560–50–P
The Board of Governors of the
Federal Reserve System (Board) invites
comment on a proposal to extend for
Sunshine Act Meeting
three years, without revision, the Basel
TIME AND DATE: Thursday, October 25,
II Interagency Pillar 2 Supervisory
2018 at 10:00 a.m.
Guidance (Pillar 2 Guidance) (FR 4199;
OMB No. 7100–0320).
PLACE: 1050 First Street NE,
Washington, DC (12th Floor).
DATES: Comments must be submitted on
STATUS: This meeting will be open to the or before December 21, 2018.
ADDRESSES: You may submit comments,
public.
identified by FR 4199, by any of the
MATTERS TO BE CONSIDERED:
Correction and Approval of Minutes for following methods:
• Agency Website: https://
October 11, 2018
www.federalreserve.gov. Follow the
Draft Advisory Opinion 2018–12:
instructions for submitting comments at
Defending Digital Campaigns, Inc.
https://www.federalreserve.gov/apps/
Management and Administrative
foia/proposedregs.aspx.
Matters
• Email: regs.comments@
CONTACT PERSON FOR MORE INFORMATION: federalreserve.gov. Include OMB
Judith Ingram, Press Officer, Telephone: number in the subject line of the
(202) 694–1220.
message.
• Fax: (202) 452–3819 or (202) 452–
Individuals who plan to attend and
3102.
require special assistance, such as sign
• Mail: Ann E. Misback, Secretary,
language interpretation or other
Board of Governors of the Federal
reasonable accommodations, should
Reserve System, 20th Street and
contact Dayna C. Brown, Secretary and
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FEDERAL ELECTION COMMISSION
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SUMMARY:
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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
NW (between 18th and 19th Streets
NW), Washington, DC 20006 between 9
a.m. and 5 p.m. on weekdays. For
security reasons, the Board requires that
visitors make an appointment to inspect
comments. You may do so by calling
(202) 452–3684. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and to submit to security screening in
order to inspect and photocopy
comments.
Additionally, commenters may send a
copy of their comments to the OMB
Desk Officer—Shagufta Ahmed—Office
of Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, Room 10235,
725 17th Street NW, Washington, DC
20503, or by fax to (202) 395–6974.
FOR FURTHER INFORMATION CONTACT: A
copy of the PRA OMB submission,
including the proposed reporting form
and instructions, supporting statement,
and other documentation will be placed
into OMB’s public docket files, if
approved. These documents will also be
made available on the Board’s public
website at: https://www.federalreserve.
gov/apps/reportforms/review.aspx or
may be requested from the agency
clearance officer, whose name appears
below.
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Federal Register / Vol. 83, No. 204 / Monday, October 22, 2018 / Notices
Federal Reserve Board Clearance
Officer—Nuha Elmaghrabi—Office of
the Chief Data Officer, Board of
Governors of the Federal Reserve
System, Washington, DC 20551, (202)
452–3829. Telecommunications Device
for the Deaf (TDD) users may contact
(202) 263–4869, Board of Governors of
the Federal Reserve System,
Washington, DC 20551.
On June
15, 1984, the Office of Management and
Budget (OMB) delegated to the Board
authority under the Paperwork
Reduction Act (PRA) to approve and
assign OMB control numbers to
collection of information requests and
requirements conducted or sponsored
by the Board. In exercising this
delegated authority, the Board is
directed to take every reasonable step to
solicit comment. In determining
whether to approve a collection of
information, the Board will consider all
comments received from the public and
other agencies.
SUPPLEMENTARY INFORMATION:
daltland on DSKBBV9HB2PROD with NOTICES
Request for Comment on Information
Collection Proposal
The Board invites public comment on
the following information collection,
which is being reviewed under
authority delegated by the OMB under
the PRA. Comments are invited on the
following:
a. Whether the proposed collection of
information is necessary for the proper
performance of the Board’s functions,
including whether the information has
practical utility;
b. The accuracy of the Board’s
estimate of the burden of the proposed
information collection, including the
validity of the methodology and
assumptions used;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected;
d. Ways to minimize the burden of
information collection on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
e. Estimates of capital or startup costs
and costs of operation, maintenance,
and purchase of services to provide
information.
At the end of the comment period, the
comments and recommendations
received will be analyzed to determine
the extent to which the Board should
modify the proposal.
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Proposal Under OMB Delegated
Authority To Extend for Three Years,
Without Revision, the Following
Information Collection
Report title: Basel II Interagency Pillar
2 Supervisory Guidance (Pillar 2
Guidance).
Agency form number: FR 4199.
OMB control number: 7100–0320.
Frequency: As needed.
Respondents: Banking institutions.
Estimated number of respondents: 13.
Estimated average hours per response:
420.
Estimated annual burden hours:
5,460.
General description of report: The
advanced approaches framework
requires certain banks and bank holding
companies (BHCs) to use an internal
ratings-based approach to calculate
regulatory credit risk capital
requirements and advance measurement
approaches to calculate regulatory
operational risk capital requirements.
A bank is required to comply with the
advanced approaches framework if it
meets either of two independent
threshold criteria: (1) Consolidated total
assets of $250 billion or more, as
reported on the most recent year-end
regulatory reports; or (2) consolidated
total on-balance sheet foreign exposure
of $10 billion or more at the most recent
year-end.
A BHC is required to comply with the
advanced approaches framework if the
BHC has (1) consolidated total assets
(excluding assets held by an insurance
underwriting subsidiary) of $250 billion
or more, as reported on the most recent
year-end regulatory reports; (2)
consolidated total on-balance sheet
foreign exposure of $10 billion or more
at the most recent year-end; or (3) a
subsidiary depository institution (DI)
that meets the criteria to be subject to
the advanced approaches rule or elects
to adopt the advanced approaches. As of
year-end 2017, 13 BHCs meet the above
criteria and are therefore subject to the
advanced approaches rule.1
Also, some banks or BHCs may
voluntarily decide to adopt the
advanced approaches framework. Both
mandatory and voluntary respondents
are required to meet certain
qualification requirements before they
can use the advanced approaches
framework for risk-based capital
purposes.
1 Regulation YY permits a bank holding company
that is a subsidiary of a foreign banking institution
to elect not to comply with the advanced
approaches rule prior to formation of an
intermediate holding companies (IHCs) with the
prior approval of the Board. 12 CFR
252.153(e)(2)(C). Currently, no savings and loan
holding companies are subject to the advanced
approaches rule.
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53249
The Pillar 2 Guidance sets the
expectation that respondents maintain
certain documentation as described in
paragraphs 37, 41, 43, and 46 of this
portion of the guidance. Details of the
expectations for each section are
provided below.
Setting and Assessing Capital Adequacy
Goals That Relate to Risk
Paragraph 37. In analyzing capital
adequacy, a banking organization
should evaluate the capacity of its
capital to absorb losses. Because various
definitions of capital are used within
the banking industry, each banking
organization should state clearly the
definition of capital used in any aspect
of its internal capital adequacy
assessment process (ICAAP).2 Since
components of capital are not
necessarily alike and have varying
capacities to absorb losses, a banking
organization should be able to
demonstrate the relationship between
its internal capital definition and its
assessment of capital adequacy. If a
banking organization’s definition of
capital differs from the regulatory
definition, the banking organization
should reconcile such differences and
provide an analysis to support the
inclusion of any capital instruments that
are not recognized under the regulatory
definition. Although common equity is
generally the predominant component
of a banking organization’s capital
structure, a banking organization may be
able to support the inclusion of other
capital instruments in its internal
definition of capital if it can
demonstrate a similar capacity to absorb
losses. The banking organization should
document any changes in its internal
definition of capital and the reason for
those changes.
2 Under the Board’s capital plan rule (12 CFR
225.8), a bank holding company with total
consolidated assets of $50 billion or more is
required to develop and maintain a capital plan;
however, on July 6, 2018, the Board issued a public
statement regarding the impact of the Economic
Growth, Regulatory Relief, and Consumer
Protection Act (EGRRCPA) (Pub. L. No. 115–174,
132 Stat. 1296 (2018)). The Board stated, consistent
with EGRRCPA, that it will not action to require
bank holding companies with total consolidated
assets greater than or equal to $50 billion but less
than $100 billion to comply with the Board’s capital
plan rule (https://www.federalreserve.gov/
newsevents/pressreleases/files/bcreg20180706
b1.pdf). Bank holding companies subject to the
capital plan rule must have a capital policy that sets
forth a capital adequacy process. ICAAP would
constitute an internal capital adequacy process for
purposes of the capital plan rule, and bank holding
companies that have a satisfactory ICAAP generally
would be considered to have a satisfactory internal
capital adequacy process for purposes of the capital
plan rule.
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Federal Register / Vol. 83, No. 204 / Monday, October 22, 2018 / Notices
Ensuring Integrity of Internal Capital
Adequacy Assessments
Paragraph 41. A banking organization
should maintain thorough
documentation of its ICAAP to ensure
transparency. At a minimum, this
should include a description of the
banking organization’s overall capitalmanagement process, including the
committees and individuals responsible
for the ICAAP; the frequency and
distribution of ICAAP-related reporting;
and the procedures for the periodic
evaluation of the appropriateness and
adequacy of the ICAAP. In addition,
where applicable, ICAAP
documentation should demonstrate the
banking organization’s sound use of
quantitative methods (including model
selection and limitations) and dataselection techniques, as well as
appropriate maintenance, controls, and
validation. A banking organization
should document and explain the role
of third-party and vendor products,
services and information—including
methodologies, model inputs, systems,
data, and ratings—and the extent to
which they are used within the ICAAP.
A banking organization should have a
process to regularly evaluate the
performance of third-party and vendor
products, services and information. As
part of the ICAAP documentation, a
banking organization should document
the assumptions, methods, data,
information, and judgment used in its
quantitative and qualitative approaches.
Paragraph 43. The board of directors
and senior management have certain
responsibilities in developing,
implementing, and overseeing the
ICAAP. The board should approve the
ICAAP and its components. The board
or its appropriately delegated agent
should review the ICAAP and its
components on a regular basis and
approve any revisions. That review
should encompass the effectiveness of
the ICAAP, the appropriateness of risk
tolerance levels and capital planning,
and the strength of control
infrastructures. Senior management
should continually ensure that the
ICAAP is functioning effectively and as
intended, under a formal review policy
that is explicit and well documented.
Additionally, a banking organization’s
internal audit function should play a
key role in reviewing the controls and
governance surrounding the ICAAP on
an ongoing basis.
Paragraph 46. As part of the ICAAP,
the board or its delegated agent, as well
as appropriate senior management,
should periodically review the resulting
assessment of overall capital adequacy.
This review, which should occur at least
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annually, should include an analysis of
how measures of internal capital
adequacy compare with other capital
measures (such as regulatory,
accounting-based or marketdetermined). Upon completion of this
review, the board or its delegated agent
should determine that, consistent with
safety and soundness, the banking
organization’s capital takes into account
all material risks and is appropriate for
its risk profile. However, in the event a
capital deficiency is uncovered (that is,
if capital is not consistent with the
banking organization’s risk profile or
risk tolerance) management should
consult and adhere to formal procedures
to correct the capital deficiency.
Legal authorization and
confidentiality: The collection of
information is authorized pursuant to
the International Lending Supervision
Act (12 U.S.C. 3907(a)(1) and (b)(3)),
section 1831o of the Federal Deposit
Insurance Act (12 U.S.C. 1831o), section
5 of the Bank Holding Company Act of
1956 (12 U.S.C. 1844), section 10(b)(2)
of the Homeowners’ Loan Act (12 U.S.C.
1467a(b)), and section 171 of the DoddFrank Act (12 U.S.C. 5371). The FR 4199
is voluntary.
Because the collections of information
associated with the FR 4199 do not
involve the submission of information
to the Board, no issues of confidentiality
would normally arise. To the extent that
the Board collects information kept by
a banking organization as a record
during an examination of the banking
organization, confidential treatment
may be afforded to the records under
exemption 8 of the Freedom of
Information Act (FOIA) (5 U.S.C.
552(b)(8)), which protects information
collected as part of the Board’s
supervisory process. Additionally,
individual respondents may request that
certain information be afforded
confidential treatment pursuant to
exemption 4 of FOIA (5 U.S.C.
552(b)(4)) if the information has not
previously been publically disclosed
and the release of the data would likely
cause substantial harm to the
competitive position of the respondent.
Board of Governors of the Federal Reserve
System, October 16, 2018.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2018–22914 Filed 10–19–18; 8:45 am]
BILLING CODE 6210–01–P
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GENERAL SERVICES
ADMINISTRATION
[OMB Control No. 3090–0205;
Docket No. 2018–0001; Sequence No. 12]
General Services Administration
Acquisition Regulation (GSAR);
Submission for OMB Review;
Environmental Conservation,
Occupational Safety, and Drug-Free
Workplace
Office of Acquisition Policy,
General Services Administration (GSA).
ACTION: Notice of request for comments
regarding the extension of a previously
existing OMB clearance.
AGENCY:
Under the provisions of the
Paperwork Reduction Act, the General
Services Administration will be
submitting to the Office of Management
and Budget (OMB) a request to review
and approve an extension of a
previously approved information
collection requirement regarding
Environmental Conservation,
Occupational Safety, and Drug-Free
Workplace.
SUMMARY:
Submit comments on or before:
November 21, 2018.
ADDRESSES: Submit comments regarding
this burden estimate or any other aspect
of this collection of information,
including suggestions for reducing this
burden to: Office of Information and
Regulatory Affairs of OMB, Attention:
Desk Officer for GSA, Room 10236,
NEOB, Washington, DC 20503.
Additionally submit a copy to GSA by
any of the following methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
searching the OMB control number.
Select the link ‘‘Comment Now’’ that
corresponds with ‘‘Information
Collection 3090–0205, Environmental
Conservation, Occupational Safety, and
Drug-Free Workplace’’. Follow the
instructions provided on the screen.
Please include your name, company
name (if any), and ‘‘Information
Collection 3090–0205, Environmental
Conservation, Occupational Safety, and
Drug-Free Workplace’’ on your attached
document.
• Mail: General Services
Administration, Regulatory Secretariat
Division (MVCB), 1800 F Street NW,
Washington, DC 20405. ATTN: Ms.
Mandell/IC 3090–0205, Environmental
Conservation, Occupational Safety, and
Drug-Free Workplace.
Instructions: Please submit comments
only and cite Information Collection
3090–0205, Environmental
DATES:
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]]>Agencies
[Federal Register Volume 83, Number 204 (Monday, October 22, 2018)]
[Notices]
[Pages 53248-53250]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22914]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice, request for comment.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
invites comment on a proposal to extend for three years, without
revision, the Basel II Interagency Pillar 2 Supervisory Guidance
(Pillar 2 Guidance) (FR 4199; OMB No. 7100-0320).
DATES: Comments must be submitted on or before December 21, 2018.
ADDRESSES: You may submit comments, identified by FR 4199, 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.
Email: [email protected]. Include OMB
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 NW (between 18th and 19th Streets NW), Washington,
DC 20006 between 9 a.m. and 5 p.m. on weekdays. For security reasons,
the Board requires that visitors make an appointment to inspect
comments. You may do so by calling (202) 452-3684. Upon arrival,
visitors will be required to present valid government-issued photo
identification and to submit to security screening in order to inspect
and photocopy comments.
Additionally, commenters may send a copy of their comments to the
OMB Desk Officer--Shagufta Ahmed--Office of Information and Regulatory
Affairs, Office of Management and Budget, New Executive Office
Building, Room 10235, 725 17th Street NW, Washington, DC 20503, or by
fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission,
including the proposed reporting form and instructions, supporting
statement, and other documentation will be placed into OMB's public
docket files, if approved. These documents will also be made available
on the Board's public website at: https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested from the agency clearance
officer, whose name appears below.
[[Page 53249]]
Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of
the Chief Data Officer, Board of Governors of the Federal Reserve
System, Washington, DC 20551, (202) 452-3829. Telecommunications Device
for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors
of the Federal Reserve System, Washington, DC 20551.
SUPPLEMENTARY INFORMATION: On June 15, 1984, the Office of Management
and Budget (OMB) delegated to the Board authority under the Paperwork
Reduction Act (PRA) to approve and assign OMB control numbers to
collection of information requests and requirements conducted or
sponsored by the Board. In exercising this delegated authority, the
Board is directed to take every reasonable step to solicit comment. In
determining whether to approve a collection of information, the Board
will consider all comments received from the public and other agencies.
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Board's functions, including whether the
information has practical utility;
b. The accuracy of the Board's estimate of the burden of the
proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or startup costs and costs of operation,
maintenance, and purchase of services to provide information.
At the end of the comment period, the comments and recommendations
received will be analyzed to determine the extent to which the Board
should modify the proposal.
Proposal Under OMB Delegated Authority To Extend for Three Years,
Without Revision, the Following Information Collection
Report title: Basel II Interagency Pillar 2 Supervisory Guidance
(Pillar 2 Guidance).
Agency form number: FR 4199.
OMB control number: 7100-0320.
Frequency: As needed.
Respondents: Banking institutions.
Estimated number of respondents: 13.
Estimated average hours per response: 420.
Estimated annual burden hours: 5,460.
General description of report: The advanced approaches framework
requires certain banks and bank holding companies (BHCs) to use an
internal ratings-based approach to calculate regulatory credit risk
capital requirements and advance measurement approaches to calculate
regulatory operational risk capital requirements.
A bank is required to comply with the advanced approaches framework
if it meets either of two independent threshold criteria: (1)
Consolidated total assets of $250 billion or more, as reported on the
most recent year-end regulatory reports; or (2) consolidated total on-
balance sheet foreign exposure of $10 billion or more at the most
recent year-end.
A BHC is required to comply with the advanced approaches framework
if the BHC has (1) consolidated total assets (excluding assets held by
an insurance underwriting subsidiary) of $250 billion or more, as
reported on the most recent year-end regulatory reports; (2)
consolidated total on-balance sheet foreign exposure of $10 billion or
more at the most recent year-end; or (3) a subsidiary depository
institution (DI) that meets the criteria to be subject to the advanced
approaches rule or elects to adopt the advanced approaches. As of year-
end 2017, 13 BHCs meet the above criteria and are therefore subject to
the advanced approaches rule.\1\
---------------------------------------------------------------------------
\1\ Regulation YY permits a bank holding company that is a
subsidiary of a foreign banking institution to elect not to comply
with the advanced approaches rule prior to formation of an
intermediate holding companies (IHCs) with the prior approval of the
Board. 12 CFR 252.153(e)(2)(C). Currently, no savings and loan
holding companies are subject to the advanced approaches rule.
---------------------------------------------------------------------------
Also, some banks or BHCs may voluntarily decide to adopt the
advanced approaches framework. Both mandatory and voluntary respondents
are required to meet certain qualification requirements before they can
use the advanced approaches framework for risk-based capital purposes.
The Pillar 2 Guidance sets the expectation that respondents
maintain certain documentation as described in paragraphs 37, 41, 43,
and 46 of this portion of the guidance. Details of the expectations for
each section are provided below.
Setting and Assessing Capital Adequacy Goals That Relate to Risk
Paragraph 37. In analyzing capital adequacy, a banking organization
should evaluate the capacity of its capital to absorb losses. Because
various definitions of capital are used within the banking industry,
each banking organization should state clearly the definition of
capital used in any aspect of its internal capital adequacy assessment
process (ICAAP).\2\ Since components of capital are not necessarily
alike and have varying capacities to absorb losses, a banking
organization should be able to demonstrate the relationship between its
internal capital definition and its assessment of capital adequacy. If
a banking organization's definition of capital differs from the
regulatory definition, the banking organization should reconcile such
differences and provide an analysis to support the inclusion of any
capital instruments that are not recognized under the regulatory
definition. Although common equity is generally the predominant
component of a banking organization's capital structure, a banking
organization may be able to support the inclusion of other capital
instruments in its internal definition of capital if it can demonstrate
a similar capacity to absorb losses. The banking organization should
document any changes in its internal definition of capital and the
reason for those changes.
---------------------------------------------------------------------------
\2\ Under the Board's capital plan rule (12 CFR 225.8), a bank
holding company with total consolidated assets of $50 billion or
more is required to develop and maintain a capital plan; however, on
July 6, 2018, the Board issued a public statement regarding the
impact of the Economic Growth, Regulatory Relief, and Consumer
Protection Act (EGRRCPA) (Pub. L. No. 115-174, 132 Stat. 1296
(2018)). The Board stated, consistent with EGRRCPA, that it will not
action to require bank holding companies with total consolidated
assets greater than or equal to $50 billion but less than $100
billion to comply with the Board's capital plan rule (https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20180706b1.pdf). Bank holding companies subject to the capital
plan rule must have a capital policy that sets forth a capital
adequacy process. ICAAP would constitute an internal capital
adequacy process for purposes of the capital plan rule, and bank
holding companies that have a satisfactory ICAAP generally would be
considered to have a satisfactory internal capital adequacy process
for purposes of the capital plan rule.
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Ensuring Integrity of Internal Capital Adequacy Assessments
Paragraph 41. A banking organization should maintain thorough
documentation of its ICAAP to ensure transparency. At a minimum, this
should include a description of the banking organization's overall
capital-management process, including the committees and individuals
responsible for the ICAAP; the frequency and distribution of ICAAP-
related reporting; and the procedures for the periodic evaluation of
the appropriateness and adequacy of the ICAAP. In addition, where
applicable, ICAAP documentation should demonstrate the banking
organization's sound use of quantitative methods (including model
selection and limitations) and data-selection techniques, as well as
appropriate maintenance, controls, and validation. A banking
organization should document and explain the role of third-party and
vendor products, services and information--including methodologies,
model inputs, systems, data, and ratings--and the extent to which they
are used within the ICAAP. A banking organization should have a process
to regularly evaluate the performance of third-party and vendor
products, services and information. As part of the ICAAP documentation,
a banking organization should document the assumptions, methods, data,
information, and judgment used in its quantitative and qualitative
approaches.
Paragraph 43. The board of directors and senior management have
certain responsibilities in developing, implementing, and overseeing
the ICAAP. The board should approve the ICAAP and its components. The
board or its appropriately delegated agent should review the ICAAP and
its components on a regular basis and approve any revisions. That
review should encompass the effectiveness of the ICAAP, the
appropriateness of risk tolerance levels and capital planning, and the
strength of control infrastructures. Senior management should
continually ensure that the ICAAP is functioning effectively and as
intended, under a formal review policy that is explicit and well
documented. Additionally, a banking organization's internal audit
function should play a key role in reviewing the controls and
governance surrounding the ICAAP on an ongoing basis.
Paragraph 46. As part of the ICAAP, the board or its delegated
agent, as well as appropriate senior management, should periodically
review the resulting assessment of overall capital adequacy. This
review, which should occur at least annually, should include an
analysis of how measures of internal capital adequacy compare with
other capital measures (such as regulatory, accounting-based or market-
determined). Upon completion of this review, the board or its delegated
agent should determine that, consistent with safety and soundness, the
banking organization's capital takes into account all material risks
and is appropriate for its risk profile. However, in the event a
capital deficiency is uncovered (that is, if capital is not consistent
with the banking organization's risk profile or risk tolerance)
management should consult and adhere to formal procedures to correct
the capital deficiency.
Legal authorization and confidentiality: The collection of
information is authorized pursuant to the International Lending
Supervision Act (12 U.S.C. 3907(a)(1) and (b)(3)), section 1831o of the
Federal Deposit Insurance Act (12 U.S.C. 1831o), section 5 of the Bank
Holding Company Act of 1956 (12 U.S.C. 1844), section 10(b)(2) of the
Homeowners' Loan Act (12 U.S.C. 1467a(b)), and section 171 of the Dodd-
Frank Act (12 U.S.C. 5371). The FR 4199 is voluntary.
Because the collections of information associated with the FR 4199
do not involve the submission of information to the Board, no issues of
confidentiality would normally arise. To the extent that the Board
collects information kept by a banking organization as a record during
an examination of the banking organization, confidential treatment may
be afforded to the records under exemption 8 of the Freedom of
Information Act (FOIA) (5 U.S.C. 552(b)(8)), which protects information
collected as part of the Board's supervisory process. Additionally,
individual respondents may request that certain information be afforded
confidential treatment pursuant to exemption 4 of FOIA (5 U.S.C.
552(b)(4)) if the information has not previously been publically
disclosed and the release of the data would likely cause substantial
harm to the competitive position of the respondent.
Board of Governors of the Federal Reserve System, October 16,
2018.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2018-22914 Filed 10-19-18; 8:45 am]
BILLING CODE 6210-01-P
