Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB, 16487-16488 [2019-07875]

Agencies

• FEDERAL RESERVE SYSTEM

[Federal Register Volume 84, Number 76 (Friday, April 19, 2019)]
[Notices]
[Pages 16487-16488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07875]


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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 implement the Report of Institution-to-
Aggregate Granular Data on Assets and Liabilities on an Immediate 
Counterparty Basis (FR 2510; OMB No. 7100-to be assigned).

DATES: The FR 2510 will be effective for the reporting period ending on 
September 30, 2019.

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 Implementation of 
the Following Information Collection

    Report title: Report of Institution-to-Aggregate Granular Data on 
Assets and Liabilities on an Immediate Counterparty Basis.
    Agency form number: FR 2510.
    OMB control number: 7100-to be assigned.
    Frequency: Quarterly, beginning with the reporting period ending on 
September 30, 2019.
    Respondents: Bank holding companies headquartered in the United 
States that are global systemically important bank holding companies 
(U.S. G-SIBs) under the Board's rules.\1\
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    \1\ See 12 CFR part 217, subpart H.
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    Estimated number of respondents: 8.
    Estimated average hours per response: One-time implementation: 
1,000 hours; ongoing: 568 hours.
    Estimated annual burden hours: One-time implementation: 8,000 
hours; ongoing: 18,176 hours.
    General description of report: The FR 2510 will collect granular 
exposure data on the assets, liabilities, and off-balance sheet 
holdings of U.S. G-SIBs, providing breakdowns by instrument, currency, 
maturity, and sector. The FR 2510 will also collect data covering 
detailed positions for the top 35 countries of exposure, on an 
immediate-counterparty basis (on the basis of the country of residence 
of the borrower), as reported in the consolidated Country Exposure 
Report of the Federal Financial Institutions Examination Council (FFIEC 
009; OMB No. 7100-0035), broken out by instrument and counterparty 
sector, with limited further breakouts by remaining maturity, subject 
to a $2 billion minimum threshold for country exposure. Further, the FR 
2510 would collect information on financial derivatives by instrument 
type and foreign exchange derivatives by currency.
    The FR 2510 will allow the Federal Reserve to conduct a more 
complete balance sheet analysis of U.S. G-SIBs. Additionally, the FR 
2510 will provide the Federal Reserve with valuable systemic 
information through the collection of more granular data regarding 
common or correlated exposures and funding dependencies than is 
currently collected by existing reports by providing more information 
about U.S. G-SIBs' consolidated exposures and funding positions to 
different countries according to instrument, counterparty sector, 
currency and remaining maturity.
    Legal authorization and confidentiality: The information collection 
is authorized under section 5 of the Bank Holding Company Act (12 
U.S.C. 1844). The information collected in the FR 2510 will be 
collected as part of the Board's supervisory process and therefore may 
be afforded confidential treatment pursuant to exemption 8 of the 
Freedom of Information Act (FOIA) (5 U.S.C. 552(b)(8)). In addition, 
individual respondents may request that certain data be afforded 
confidential treatment pursuant to exemption 4 of the FOIA if the data 
has not previously been publically disclosed and the release of the 
data would likely cause substantial harm to the competitive position of 
the respondent (5 U.S.C. 552(b)(4)). Determinations of confidentiality 
based on exemption 4 of the FOIA will be made on a case-by-case basis.
    Current actions: On August 27, 2018, the Board published a notice 
in the Federal Register (83 FR 43680) requesting public comment for 60 
days on the implementation of the FR 2510. The comment period for this 
notice expired on October 26, 2018. The Board received two comments. 
With the exception of certain changes discussed below, the FR 2510 will 
be implemented as proposed.

[[Page 16488]]

    Detailed Discussion of Public Comments: One commenter, a banking 
association, stated that the FR 2510 would be a necessary step toward 
narrowing the scope of the data collection from what the FSB originally 
proposed. In addition, the commenter made six recommendations to the 
Board:
     First, the commenter requested that the Board delay the 
implementation date in light of the following concerns:
     Respondents will need time to revise their reporting 
systems and develop the required controls for a new report;
     Several respondents rely on external vendors, who cannot 
begin software design work until the Board provides final approval and 
releases the final technical specifications;
     Several respondents are undergoing transformative changes 
to their regulatory reporting systems, which will draw resources away 
from FR 2510 implementation; and
     Respondents are currently preparing for the upcoming 
Comprehensive Capital Analysis and Review (CCAR),\2\ which will also 
draw resources away from FR 2510 implementation.
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    \2\ The Federal Reserve's CCAR exercises evaluate the capital 
planning processes and capital adequacy of the largest U.S.-based 
bank holding companies, including the firms' planned capital 
actions, such as dividend payments and share buybacks.
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    For these reasons, the commenter recommended that the Board delay 
the proposed March 31, 2019, effective date to December 31, 2019, and 
that in no case should reporting begin earlier than September 30, 2019. 
The Board agrees with the commenter's recommendation to allow more time 
and is thus delaying the effective date of the FR 2510 to September 30, 
2019. The Board believes the revised effective date addresses the 
commenter's concerns by providing institutions with sufficient time to 
prepare their reporting systems and implement appropriate controls.
    Second, the commenter stated that there would be insufficient time 
to determine in each quarter the top 35 countries by total exposure as 
requested in Table 2, Consolidated Balance Sheet, since current quarter 
exposure data is based on the FFIEC 009, which has a filing deadline 
only five days before the FR 2510 for the first, second, and third 
calendar quarters. In response, the Board has clarified the 
instructions to specify that the top 35 countries by total exposure 
should be based on the four quarters preceding the current quarter.
    Third, the commenter recommended that foreign exchange derivatives 
reported on the Financial Derivatives and Foreign Exchange Derivatives 
Schedules should be defined consistently between Board regulatory 
reports and align with U.S. generally accepted accounting principles 
(GAAP). As proposed, the Financial Derivatives Schedule would have been 
populated automatically from the FR Y-15, which includes certain client 
clearing derivatives not included on the FR Y-9C or the FR 2436. In 
response, the Board has revised the instructions for the Financial 
Derivatives Schedule by removing the reference to automatic data 
population from the FR Y-15 and by aligning the schedule with U.S. GAAP 
and the FR Y-9C and FR 2436.
    Fourth, the commenter noted a difference in treatment between the 
FR Y-9C and the FFIEC 009 for netting trading assets against trading 
liabilities in the same security (Committee on Uniform Security 
Identification Procedures (CUSIP) netting), which would affect 
production of data for the FR 2510. To address this concern, the 
commenter recommended revising the instructions to use the treatment of 
CUSIP netting on the FFIEC 009. The commenter also suggested clarifying 
the instructions so that the definition of country of residence for 
individuals would be consistent with the FFIEC 009. In response, the 
Board has revised the instructions to state that both the treatment of 
CUSIP netting and the definition of country of residence for 
individuals should be consistent with the FFIEC 009.
    Fifth, the commenter requested that the Board provide 
clarifications to a supplemental instructional document that anchors 
the definitions of certain FR 2510 data items to the FR Y-9C and other 
reports and update the supplemental instructional document to reflect 
the current version of the FR Y-9C. The Board will provide the 
requested clarifications and update the supplemental instructional 
document in advance of the first FR 2510 filing date.
    Sixth and finally, the commenter requested clarifications to the FR 
2510 instructions for reporting of certificates of deposit held for 
trading; reverse repurchase agreements and securities lending 
agreements with household counterparts; master netting agreements; and 
short sale contracts. In response, the Board has clarified the 
instructions in these areas.
    The other commenter, an individual, stated that the FR 2510 
contains similarities to existing collections, such as the Central Bank 
Survey of Foreign Exchange and Derivatives Market Activity (FR 3036; 
OMB No. 7100-0285), the Treasury Department's Treasury International 
Capital (TIC) B form for claims and liabilities by country and 
counterparty type (OMB No. 1505-0020), and the TIC D form for 
derivatives activity (OMB No. 1505-0199). While existing reports 
collect data on exposures and funding positions to different countries, 
it is important to note that the FR 2510 supports a more complete 
balance sheet analysis and collects more granular data regarding 
instruments, counterparty sector, currency, and residual maturity. 
Therefore, the Board has not altered the proposal in response to this 
comment.
    Aside from the delayed implementation date and the instructional 
changes discussed above, the Board will implement the FR 2510 as 
originally proposed.

    Board of Governors of the Federal Reserve System, April 16, 
2019.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2019-07875 Filed 4-18-19; 8:45 am]
 BILLING CODE 6210-01-P