Regulation Q; Regulatory Capital Rules: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies, 63887-63888 [2018-26850]

Download as PDF amozie on DSK3GDR082PROD with NOTICES1 Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices The FR 1400 is authorized pursuant to sections 10 and 11 of the Federal Reserve Act (‘‘FRA’’), and section 342(c) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘DoddFrank’’). Sections 10(3) and 11 of the FRA (12 U.S.C. 243 and 248(l)) grant the Board full authority to manage its buildings and its staff. Section 10(4) of the FRA (12 U.S.C. 244) authorizes the Board to determine and prescribe the manner in which its obligations shall be incurred and its disbursements and expenses allowed and paid. Therefore, the Board can solicit proposals and seek the information in FR 1400 from prospective vendors. Additionally, the FR 1400 is authorized by section 342(c) of DoddFrank (12 U.S.C. 5452(c)), which requires the Board to develop and implement standards and procedures for the review and evaluation of contract proposals and for hiring service providers that include a component that gives consideration to the diversity of a prospective vendor and the fair inclusion of women and minorities in the workforce of such vendor and any subcontractor. A vendor generally may request confidential treatment for information submitted during the solicitation process, and the Board will review the request to determine if the data may be kept confidential under exemption 4 of the Freedom of Information Act, which protects from disclosure trade secrets and commercial or financial information (5 U.S.C. 552(b)(4)). Current actions: On September 28, 2018, the Board published a notice in the Federal Register (83 FR 49092) requesting public comment for 60 days on the extension, with revision, of the Procurement Solicitation Package. To better assist the Board’s competitive vendor solicitation process, the Board has revised the FR 1400 by (1) reformatting and updating the Solicitation Package, including the Solicitation, Offer, and Award Form (SOA), Supplier Information Form, Past Performance Data Sheet, and Past Performance Questionnaire (FR 1400B); (2) adding the Vendor Risk Management Offeror Questionnaire (FR 1400C); and (3) revising the Subcontracting Report (FR 1400D) to improve clarity and gather specific information in accordance with the Board’s subcontracting goals. Lastly, the Board has discontinued the use of the Request VerDate Sep<11>2014 18:39 Dec 11, 2018 Jkt 247001 for Price Quotation Form (RFP/RFPQ). The purpose of the RFPQ form was absorbed into the FR 1400B. The comment period for this notice expired on November 27, 2018. The Board did not receive any comments. The revisions will be implemented as proposed. Board of Governors of the Federal Reserve System, December 6, 2018. Michele Taylor Fennell, Assistant Secretary of the Board. [FR Doc. 2018–26816 Filed 12–11–18; 8:45 am] BILLING CODE 6210–01–P FEDERAL RESERVE SYSTEM [Docket No. OP–1640 ] Regulation Q; Regulatory Capital Rules: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies Board of Governors of the Federal Reserve System (Board). ACTION: Notice. AGENCY: The Board is providing notice of the aggregate global indicator amounts for purposes of a calculation for 2018, which is required under the Board’s rule regarding risk-based capital surcharges for global systemically important bank holding companies (GSIB surcharge rule). DATES: Applicable: December 12, 2018. FOR FURTHER INFORMATION CONTACT: Elizabeth MacDonald, Manager, (202) 475–6316, or Sean Healey, Supervisory Financial Analyst, (202) 912–4611, Division of Supervision and Regulation; or Mark Buresh, Counsel, (202) 452– 5270, or Mary Watkins, Senior Attorney, (202) 452–3722, Legal Division. Board of Governors of the Federal Reserve System, 20th and C Streets NW, Washington, DC 20551. For the hearing impaired only, Telecommunications Device for the Deaf (TDD) users may contact (202) 263–4869. SUPPLEMENTARY INFORMATION: The Board’s GSIB surcharge rule establishes a methodology to identify global systemically important bank holding companies in the United States (GSIBs) based on indicators that are correlated with systemic importance.1 Under the GSIB surcharge rule, a firm must calculate its GSIB score using a specific formula (Method 1). Method 1 uses five SUMMARY: 1 See PO 00000 12 CFR 217.402, 217.404. Frm 00063 Fmt 4703 Sfmt 4703 63887 equally weighted categories that are correlated with systemic importance— size, interconnectedness, crossjurisdictional activity, substitutability, and complexity—and subdivided into twelve systemic indicators. For each indicator, a firm divides its own measure of each systemic indicator by an aggregate global indicator amount. The firm’s Method 1 score is the sum of its weighted systemic indicator scores expressed in basis points. The GSIB surcharge for the firm is then the higher of the GSIB surcharge determined under Method 1 and a second method that weights size, interconnectedness, crossjurisdictional activity, complexity, and a measure of a firm’s reliance on wholesale funding (instead of substitutability).2 The aggregate global indicator amounts used in the score calculation under Method 1 are based on data collected by the Basel Committee on Banking Supervision (BCBS). The BCBS amounts are determined based on the sum of the systemic indicator scores of the 75 largest U.S. and foreign banking organizations as measured by the BCBS, and any other banking organization that the BCBS includes in its sample total for that year. The BCBS publicly releases these values, denominated in euros, each year. Pursuant to the GSIB surcharge rule, the Board publishes the aggregate global indicator amounts each year as denominated in U.S. dollars using the euro-dollar exchange rate provided by the BCBS.3 Specifically, the Board multiplied each of the eurodenominated indicator amounts made publicly available by the BCBS by 1.1993, which was the daily euro to U.S. dollar spot rate on December 29, 2017, as published by the European Central Bank (available at http://www.ecb. europa.eu/stats/eurofxref/ index.en.html). The aggregate global indicator amounts for purposes of the 2018 Method 1 score calculation under § 217.404(b)(1)(i)(B) of the GSIB surcharge rule are: 2 The second method (Method 2) uses similar inputs to those used in Method 1, but replaces the substitutability category with a measure of a firm’s use of short-term wholesale funding. In addition, Method 2 is calibrated differently from Method 1. 3 12 CFR 217.404(b)(1)(i)(B); 80 FR 49082, 49086– 87 (August 14, 2015). In addition, the Board maintains the GSIB Framework Denominators on its website, available at https://www.federal reserve.gov/bankinforeg/basel/denominators.htm. E:\FR\FM\12DEN1.SGM 12DEN1 63888 Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices AGGREGATE GLOBAL INDICATOR AMOUNTS IN U.S. DOLLARS (USD) FOR 2018 Category Systemic indicator Aggregate global indicator amount (in USD) Size ....................................................... Interconnectedness ............................... Total exposures .................................................................................................. Intra-financial system assets .............................................................................. Intra-financial system liabilities ........................................................................... Securities outstanding ........................................................................................ Payments activity ............................................................................................... Assets under custody ......................................................................................... Underwritten transactions in debt and equity markets ...................................... Notional amount of over-the-counter (OTC) derivatives .................................... Trading and available-for-sale (AFS) securities ................................................. Level 3 assets .................................................................................................... Cross-jurisdictional claims .................................................................................. Cross-jurisdictional liabilities .............................................................................. 87,573,483,134,570 8,318,335,066,526 9,730,031,597,197 16,202,976,535,511 2,448,767,065,374,350 171,019,921,278,856 7,116,528,205,923 602,822,111,266,476 3,934,397,357,213 464,078,515,309 21,836,288,121,267 19,161,780,782,485 Substitutability ....................................... Complexity ............................................ Cross-jurisdictional activity ................... Authority: 12 U.S.C. 248(a), 321–338a, 481–486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p–l, 1831w, 1835, 1844(b), 1851, 3904, 3906–3909, 4808, 5365, 5368, 5371. By order of the Board of Governors of the Federal Reserve System, December 6, 2018. Ann Misback, Secretary of the Board. [FR Doc. 2018–26850 Filed 12–11–18; 8:45 am] Board of Governors of the Federal Reserve System, December 7, 2018. Yao-Chin Chao, Assistant Secretary of the Board. [FR Doc. 2018–26926 Filed 12–11–18; 8:45 am] BILLING CODE P BILLING CODE P amozie on DSK3GDR082PROD with NOTICES1 subsidiary, Union Bank and Trust Company, both of Livingston, Tennessee. FEDERAL RESERVE SYSTEM FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company Formations of, Acquisitions by, and Mergers of Bank Holding Companies The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than December 27, 2018. A. Federal Reserve Bank of Atlanta (Kathryn Haney, Assistant Vice President) 1000 Peachtree Street NE, Atlanta, Georgia 30309. Comments can also be sent electronically to Applications.Comments@atl.frb.org: 1. Amy Beth Windle Oakley, Cookeville, Tennessee, and Mark Edward Copeland, Ooltewah, Tennessee; to become members of the Windle/Copeland Family Control Group and thereby retain shares of Overton Financial Services, Inc., and its VerDate Sep<11>2014 18:39 Dec 11, 2018 Jkt 247001 The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below. The applications listed below, as well as other related filings required by the Board, are available for immediate inspection at the Federal Reserve Bank indicated. The applications will also be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Unless otherwise noted, comments regarding each of these applications PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than January 7, 2019. A. Federal Reserve Bank of Richmond (Adam M. Drimer, Assistant Vice President) 701 East Byrd Street, Richmond, Virginia 23219. Comments can also be sent electronically to or Comments.applications@rich.frb.org: 1. Bay-Vanguard, MHC and BV Financial, Inc., both of Sparrows Point, Maryland; to become bank holding companies upon their conversion from federally chartered saving and loan holding companies to state chartered bank holding companies. Applicants will retain Bay-Vanguard Bank, Sparrows Point, Maryland. 2. Bay-Vanguard, MHC and BV Financial, Inc., both of Sparrows Point, Maryland; to acquire Kopernik Bank, Baltimore, Maryland. Board of Governors of the Federal Reserve System, December 6, 2018. Yao-Chin Chao, Assistant Secretary of the Board. [FR Doc. 2018–26806 Filed 12–11–18; 8:45 am] BILLING CODE P FEDERAL RETIREMENT THRIFT INVESTMENT BOARD Meeting December 17, 2018, 11:00 a.m. (Telephonic) Open Session 1. Approval of the minutes for the November 27, 2018 Board Member Meeting 2. Monthly Reports (a) Participant Activity (b) Legislative Report (c) Investment Performance 3. 2018 Internal Audit Update 4. 2019 Proposed Internal Audit Schedule 5. Vendor Risk Management Update E:\FR\FM\12DEN1.SGM 12DEN1

Agencies

[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)]
[Notices]
[Pages 63887-63888]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26850]


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FEDERAL RESERVE SYSTEM

[Docket No. OP-1640 ]


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

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

ACTION: Notice.

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SUMMARY: The Board is providing notice of the aggregate global 
indicator amounts for purposes of a calculation for 2018, which is 
required under the Board's rule regarding risk-based capital surcharges 
for global systemically important bank holding companies (GSIB 
surcharge rule).

DATES: Applicable: December 12, 2018.

FOR FURTHER INFORMATION CONTACT: Elizabeth MacDonald, Manager, (202) 
475-6316, or Sean Healey, Supervisory Financial Analyst, (202) 912-
4611, Division of Supervision and Regulation; or Mark Buresh, Counsel, 
(202) 452-5270, or Mary Watkins, Senior Attorney, (202) 452-3722, Legal 
Division. Board of Governors of the Federal Reserve System, 20th and C 
Streets NW, Washington, DC 20551. For the hearing impaired only, 
Telecommunications Device for the Deaf (TDD) users may contact (202) 
263-4869.

SUPPLEMENTARY INFORMATION: The Board's GSIB surcharge rule establishes 
a methodology to identify global systemically important bank holding 
companies in the United States (GSIBs) based on indicators that are 
correlated with systemic importance.\1\ Under the GSIB surcharge rule, 
a firm must calculate its GSIB score using a specific formula (Method 
1). Method 1 uses five equally weighted categories that are correlated 
with systemic importance--size, interconnectedness, cross-
jurisdictional activity, substitutability, and complexity--and 
subdivided into twelve systemic indicators. For each indicator, a firm 
divides its own measure of each systemic indicator by an aggregate 
global indicator amount. The firm's Method 1 score is the sum of its 
weighted systemic indicator scores expressed in basis points. The GSIB 
surcharge for the firm is then the higher of the GSIB surcharge 
determined under Method 1 and a second method that weights size, 
interconnectedness, cross-jurisdictional activity, complexity, and a 
measure of a firm's reliance on wholesale funding (instead of 
substitutability).\2\
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    \1\ See 12 CFR 217.402, 217.404.
    \2\ The second method (Method 2) uses similar inputs to those 
used in Method 1, but replaces the substitutability category with a 
measure of a firm's use of short-term wholesale funding. In 
addition, Method 2 is calibrated differently from Method 1.
---------------------------------------------------------------------------

    The aggregate global indicator amounts used in the score 
calculation under Method 1 are based on data collected by the Basel 
Committee on Banking Supervision (BCBS). The BCBS amounts are 
determined based on the sum of the systemic indicator scores of the 75 
largest U.S. and foreign banking organizations as measured by the BCBS, 
and any other banking organization that the BCBS includes in its sample 
total for that year. The BCBS publicly releases these values, 
denominated in euros, each year. Pursuant to the GSIB surcharge rule, 
the Board publishes the aggregate global indicator amounts each year as 
denominated in U.S. dollars using the euro-dollar exchange rate 
provided by the BCBS.\3\ Specifically, the Board multiplied each of the 
euro-denominated indicator amounts made publicly available by the BCBS 
by 1.1993, which was the daily euro to U.S. dollar spot rate on 
December 29, 2017, as published by the European Central Bank (available 
at http://www.ecb.europa.eu/stats/eurofxref/index.en.html).
---------------------------------------------------------------------------

    \3\ 12 CFR 217.404(b)(1)(i)(B); 80 FR 49082, 49086-87 (August 
14, 2015). In addition, the Board maintains the GSIB Framework 
Denominators on its website, available at https://www.federalreserve.gov/bankinforeg/basel/denominators.htm.
---------------------------------------------------------------------------

    The aggregate global indicator amounts for purposes of the 2018 
Method 1 score calculation under Sec.  217.404(b)(1)(i)(B) of the GSIB 
surcharge rule are:

[[Page 63888]]



                        Aggregate Global Indicator Amounts in U.S. Dollars (USD) for 2018
----------------------------------------------------------------------------------------------------------------
                                                                                              Aggregate global
                    Category                                 Systemic indicator            indicator amount  (in
                                                                                                    USD)
----------------------------------------------------------------------------------------------------------------
Size............................................  Total exposures........................     87,573,483,134,570
Interconnectedness..............................  Intra-financial system assets..........      8,318,335,066,526
                                                  Intra-financial system liabilities.....      9,730,031,597,197
                                                  Securities outstanding.................     16,202,976,535,511
Substitutability................................  Payments activity......................  2,448,767,065,374,350
                                                  Assets under custody...................    171,019,921,278,856
                                                  Underwritten transactions in debt and        7,116,528,205,923
                                                   equity markets.
Complexity......................................  Notional amount of over-the-counter        602,822,111,266,476
                                                   (OTC) derivatives.
                                                  Trading and available-for-sale (AFS)         3,934,397,357,213
                                                   securities.
                                                  Level 3 assets.........................        464,078,515,309
Cross-jurisdictional activity...................  Cross-jurisdictional claims............     21,836,288,121,267
                                                  Cross-jurisdictional liabilities.......     19,161,780,782,485
----------------------------------------------------------------------------------------------------------------


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

    By order of the Board of Governors of the Federal Reserve 
System, December 6, 2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018-26850 Filed 12-11-18; 8:45 am]
 BILLING CODE P