Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB, 6787-6788 [2019-03485]
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Federal Register / Vol. 84, No. 40 / Thursday, February 28, 2019 / Notices
khammond on DSKBBV9HB2PROD with NOTICES
release supervisory models used to
project losses for previous stress tests.
The Board intends to include in its
enhanced model disclosure detailed
descriptions of the supervisory models
that are currently addressed in the
model description appendix of the
Board’s annual disclosure of
supervisory stress test results, including
the models used to project PPNR and
operational-risk losses. These
descriptions would contain the
structural form of key model equations
and key input variables. Further, the
Board intends to publish projections of
certain components of PPNR, including
net interest income, noninterest income,
and noninterest expense, for each
covered company in its annual results
disclosure.
The detailed disclosure of modeled
loss rates similar to the example
provided in the proposal requires loanor security-level data reported to the
Board on a regular basis; therefore, such
disclosures are not feasible for certain
types of models or calculations, such as
the calculation of deferred tax assets.
The Board intends to publish enhanced
modeled loss rate disclosures for the
most material loan portfolios over the
next several years, starting with two of
the most material loan portfolios in
2019. Over time, the Federal Reserve
will extend enhanced modeled loss rate
disclosures to non-loan portfolios, such
as securities. The specific portfolios and
the level of detail provided for each
portfolio will depend on constraints
such as those related to vendor data
contracts, where applicable.
Models used in previous years are
described in the Board’s annual
disclosure of supervisory stress test
results.
D. Timing of Enhanced Model
Disclosure
Some commenters requested that
enhanced disclosure be provided in
early January of each calendar year.
Another commenter asserted that the
benefits of a stress test model disclosure
are maximized and costs are minimized
when disclosure takes place after the
stress tests are completed.
Consistent with the proposal, the
Board expects to publish details about
the models in the first quarter of each
calendar year. Specifically, the Board
expects to publish enhanced model
descriptions for all models and
enhanced modeled loss rate disclosures
for two of the most material loan models
in the first quarter of 2019. In 2020, the
Board intends to revise enhanced model
descriptions, as appropriate, and to
publish enhanced modeled loss rate
disclosures for two additional models.
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Publication of the supervisory model
disclosure prior to the release of the
supervisory stress test results will help
firms and the public anticipate the
extent to which changes in supervisory
results may result from changes in the
models. In recent years, the Board has
increased the information it provides to
the public about supervisory models,
and has detailed material model
changes in an annual letter published in
advance of the stress test. The Board
believes that the benefits of providing
that information in advance of the stress
test outweigh the costs of doing so.
By order of the Board of Governors of the
Federal Reserve System, February 22, 2019.
Ann Misback,
Secretary of the Board.
[FR Doc. 2019–03505 Filed 2–27–19; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Agency Information Collection
Activities: Announcement of Board
Approval Under Delegated Authority
and Submission to OMB
Board of Governors of the
Federal Reserve System.
SUMMARY: The Board of Governors of the
Federal Reserve System (Board) is
adopting a proposal to extend for three
years, without revision, the
Recordkeeping Provisions Associated
with the Guidance on Sound Incentive
Compensation Policies (FR 4027; OMB
No. 7100–0327).
FOR FURTHER INFORMATION CONTACT:
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.
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.
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. Board-approved
collections of information are
AGENCY:
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6787
incorporated into the official OMB
inventory of currently approved
collections of information. Copies of the
Paperwork Reduction Act Submission,
supporting statements and approved
collection of information instrument(s)
are placed into OMB’s public docket
files. The Board may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection that has been extended,
revised, or implemented on or after
October 1, 1995, unless it displays a
currently valid OMB control number.
Final approval under OMB delegated
authority of the extension for three
years, without revision, (or the
implementation) of the following
information collection:
Report title: Recordkeeping Provisions
Associated with the Guidance on Sound
Incentive Compensation Policies.
Agency form number: FR 4027.
OMB control number: 7100–0327.
Frequency: Annual.
Respondents: Banking organizations.
Estimated number of respondents:
One-time implementation for large
institutions: 1; one-time implementation
for small institutions: 1; ongoing
maintenance: 5,710.
Estimated average hours per response:
One-time implementation for large
institutions: 480; one-time
implementation for small institutions:
80; ongoing maintenance: 40.
Estimated annual burden hours:
228,960.
General Description of Report
Compatibility With Effective Controls
and Risk Management
Pursuant to Principle 2 of the
Guidance, a banking organization’s riskmanagement processes and internal
controls should reinforce and support
the development and maintenance of
balanced incentive compensation
arrangements. Principle 2 states that
banking organizations should create and
maintain sufficient documentation to
permit an audit of the organization’s
processes for establishing, modifying,
and monitoring incentive compensation
arrangements. Additionally, large
banking organizations should maintain
policies and procedures that (i) identify
and describe the role(s) of the
personnel, business units, and control
units authorized to be involved in the
design, implementation, and monitoring
of incentive compensation
arrangements; (ii) identify the source of
significant risk-related inputs into these
processes and establish appropriate
controls governing the development and
approval of these inputs to help ensure
their integrity; and (iii) identify the
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Federal Register / Vol. 84, No. 40 / Thursday, February 28, 2019 / Notices
khammond on DSKBBV9HB2PROD with NOTICES
individual(s) and control unit(s) whose
approval is necessary for the
establishment of new incentive
compensation arrangements or
modification of existing arrangements.
Strong Corporate Governance
Pursuant to Principle 3 of the
Guidance, banking organizations should
have strong and effective corporate
governance to help ensure sound
compensation practices. The Guidance
states that a banking organization’s
board of directors should approve and
document any material exceptions or
adjustments to the organization’s
incentive compensation arrangements
established for senior executives.
Legal authorization and
confidentiality: The recordkeeping
provisions of the Guidance are
authorized pursuant to sections 9, 11(a),
25, and 25A of the Federal Reserve Act
(12 U.S.C. 248(a), 325, 602, and 625);
section 5 of the Bank Holding Company
Act (12 U.S.C. 1844); section 10(b)(2) of
the Home Owners’ Loan Act (12 U.S.C.
1467a(b)(2)); section 7(c) of the
International Banking Act (12 U.S.C.
3105(c)); and section 39 of the Federal
Deposit Insurance Act (12 U.S.C.
1831p–1(c)).
Because the recordkeeping provisions
are contained within guidance, which is
nonbinding, they are voluntary. There
are no reporting forms associated with
this information collection.
Because the incentive compensation
records would be maintained at each
banking organization, the Freedom of
Information Act (‘‘FOIA’’) would only
be implicated if the Board obtained such
records as part of the examination or
supervision of a banking organization.
In the event the records are obtained by
the Board as part of an examination or
supervision of a financial institution,
this information is considered
confidential pursuant to exemption 8 of
the FOIA, which protects information
contained in ‘‘examination, operating,
or condition reports’’ obtained in the
bank supervisory process (5 U.S.C.
552(b)(8)). In addition, the information
may also be kept confidential under
exemption 4 of the FOIA, which
protects commercial or financial
information obtained from a person that
is privileged or confidential (5 U.S.C.
552(b)(4)).
Current actions: On November 30,
2018, the Board published a notice in
the Federal Register (83 FR 61637)
requesting public comment for 60 days
on the extension, without revision, of
the Recordkeeping Provisions
Associated with the Guidance on Sound
Incentive Compensation Policies. The
comment period for this notice expired
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17:52 Feb 27, 2019
Jkt 247001
on January 29, 2019. The Board did not
receive any comments.
Board of Governors of the Federal Reserve
System, February 21, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
1. Forward Mutual Holding Company,
and Forward Financial, Inc., both of
Marshfield, Wisconsin; to become bank
holding companies by acquiring The
First National Bank of Park Falls, Parks
Falls, Wisconsin.
BILLING CODE 6210–01–P
Board of Governors of the Federal Reserve
System, February 25, 2019.
Yao-Chin Chao,
Assistant Secretary of the Board.
FEDERAL RESERVE SYSTEM
[FR Doc. 2019–03506 Filed 2–27–19; 8:45 am]
[FR Doc. 2019–03485 Filed 2–27–19; 8:45 am]
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
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
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than March 29,
2019.
A. Federal Reserve Bank of New York
(Ivan Hurwitz, Vice President) 33
Liberty Street, New York, New York
10045–0001. Comments can also be sent
electronically to Comments.applications
@ny.frb.org:
1. NBC Bancorp, Inc., Coxsackie, New
York; to become a bank holding
company by acquiring 100 percent of
the voting shares of The National Bank
of Coxsackie, Coxsackie, New York.
B. Federal Reserve Bank of Chicago
(Colette A. Fried, Assistant Vice
President) 230 South LaSalle Street,
Chicago, Illinois 60690–1414:
PO 00000
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BILLING CODE P
FEDERAL RESERVE SYSTEM
Agency Information Collection
Activities: Announcement of Board
Approval Under Delegated Authority
and Submission to OMB
Board of Governors of the
Federal Reserve System.
SUMMARY: The Board of Governors of the
Federal Reserve System (Board) is
adopting a proposal to extend for three
years, without revision, the Domestic
Branch Notification (FR 4001; OMB No.
7100–0097).
FOR FURTHER INFORMATION CONTACT:
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.
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.
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. Board-approved
collections of information are
incorporated into the official OMB
inventory of currently approved
collections of information. Copies of the
Paperwork Reduction Act Submission,
supporting statements and approved
collection of information instrument(s)
are placed into OMB’s public docket
files. The Board may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection that has been extended,
AGENCY:
E:\FR\FM\28FEN1.SGM
28FEN1
]]>Agencies
[Federal Register Volume 84, Number 40 (Thursday, February 28, 2019)]
[Notices]
[Pages 6787-6788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03485]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is adopting a proposal to extend for three years, without revision, the
Recordkeeping Provisions Associated with the Guidance on Sound
Incentive Compensation Policies (FR 4027; OMB No. 7100-0327).
FOR FURTHER INFORMATION CONTACT:
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.
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.
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. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. Copies of the Paperwork Reduction Act
Submission, supporting statements and approved collection of
information instrument(s) are placed into OMB's public docket files.
The Board may not conduct or sponsor, and the respondent is not
required to respond to, an information collection that has been
extended, revised, or implemented on or after October 1, 1995, unless
it displays a currently valid OMB control number.
Final approval under OMB delegated authority of the extension for
three years, without revision, (or the implementation) of the following
information collection:
Report title: Recordkeeping Provisions Associated with the Guidance
on Sound Incentive Compensation Policies.
Agency form number: FR 4027.
OMB control number: 7100-0327.
Frequency: Annual.
Respondents: Banking organizations.
Estimated number of respondents: One-time implementation for large
institutions: 1; one-time implementation for small institutions: 1;
ongoing maintenance: 5,710.
Estimated average hours per response: One-time implementation for
large institutions: 480; one-time implementation for small
institutions: 80; ongoing maintenance: 40.
Estimated annual burden hours: 228,960.
General Description of Report
Compatibility With Effective Controls and Risk Management
Pursuant to Principle 2 of the Guidance, a banking organization's
risk-management processes and internal controls should reinforce and
support the development and maintenance of balanced incentive
compensation arrangements. Principle 2 states that banking
organizations should create and maintain sufficient documentation to
permit an audit of the organization's processes for establishing,
modifying, and monitoring incentive compensation arrangements.
Additionally, large banking organizations should maintain policies and
procedures that (i) identify and describe the role(s) of the personnel,
business units, and control units authorized to be involved in the
design, implementation, and monitoring of incentive compensation
arrangements; (ii) identify the source of significant risk-related
inputs into these processes and establish appropriate controls
governing the development and approval of these inputs to help ensure
their integrity; and (iii) identify the
[[Page 6788]]
individual(s) and control unit(s) whose approval is necessary for the
establishment of new incentive compensation arrangements or
modification of existing arrangements.
Strong Corporate Governance
Pursuant to Principle 3 of the Guidance, banking organizations
should have strong and effective corporate governance to help ensure
sound compensation practices. The Guidance states that a banking
organization's board of directors should approve and document any
material exceptions or adjustments to the organization's incentive
compensation arrangements established for senior executives.
Legal authorization and confidentiality: The recordkeeping
provisions of the Guidance are authorized pursuant to sections 9,
11(a), 25, and 25A of the Federal Reserve Act (12 U.S.C. 248(a), 325,
602, and 625); section 5 of the Bank Holding Company Act (12 U.S.C.
1844); section 10(b)(2) of the Home Owners' Loan Act (12 U.S.C.
1467a(b)(2)); section 7(c) of the International Banking Act (12 U.S.C.
3105(c)); and section 39 of the Federal Deposit Insurance Act (12
U.S.C. 1831p-1(c)).
Because the recordkeeping provisions are contained within guidance,
which is nonbinding, they are voluntary. There are no reporting forms
associated with this information collection.
Because the incentive compensation records would be maintained at
each banking organization, the Freedom of Information Act (``FOIA'')
would only be implicated if the Board obtained such records as part of
the examination or supervision of a banking organization. In the event
the records are obtained by the Board as part of an examination or
supervision of a financial institution, this information is considered
confidential pursuant to exemption 8 of the FOIA, which protects
information contained in ``examination, operating, or condition
reports'' obtained in the bank supervisory process (5 U.S.C.
552(b)(8)). In addition, the information may also be kept confidential
under exemption 4 of the FOIA, which protects commercial or financial
information obtained from a person that is privileged or confidential
(5 U.S.C. 552(b)(4)).
Current actions: On November 30, 2018, the Board published a notice
in the Federal Register (83 FR 61637) requesting public comment for 60
days on the extension, without revision, of the Recordkeeping
Provisions Associated with the Guidance on Sound Incentive Compensation
Policies. The comment period for this notice expired on January 29,
2019. The Board did not receive any comments.
Board of Governors of the Federal Reserve System, February 21,
2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-03485 Filed 2-27-19; 8:45 am]
BILLING CODE 6210-01-P
