Proposed Agency Information Collection Activities; Comment Request, 50840-50844 [2019-20928]
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50840
Federal Register / Vol. 84, No. 187 / Thursday, September 26, 2019 / Notices
10(f) of the HOLA (12 U.S.C. 1467a(f)).
The Board also has the authority to
require reports from savings and loan
holding companies under Section 10(a)
and (b) of the HOLA (12 U.S.C. 1467a(b)
and (g)). Section 10(f) of the HOLA
provides that every subsidiary savings
association of an SLHC shall give the
Board at least 30 days’ advance notice
of the proposed declaration by its
directors of any stock dividend.
Individual respondents may request
that information submitted on the FR
1583 be kept confidential on a case-bycase basis. If a respondent requests
confidential treatment, the Board will
determine whether the information is
entitled to confidential treatment on an
ad hoc basis. The FR 1583 may include
information related to the SLHC’s
business operations, such as terms and
sources of the funding for dividends and
pro forma balance sheets. This
information may be kept confidential
under exemption 4 of the Freedom of
Information Act, which protects
privileged or confidential commercial or
financial information (5 U.S.C.
552(b)(4)).
Current actions: On June 17, 2019, the
Board published a notice in the Federal
Register (84 FR 28049) requesting
public comment for 60 days on the
extension, with revision, of the Notice
of Proposed Declaration of Dividend.
The Board proposed several revisions to
make the FR 1583 consistent with the
format of other Board forms and to
reflect the Board’s regulations.
Specifically, the Board proposed the
following revisions:
1. Adding an item requiring the filer
to identify the ‘‘Nature of the
Dividend.’’ Board regulations permit a
dividend to consist of the distribution of
cash or other property, or any
transaction that is substantively a
dividend, as provided by the Board (12
CFR 238.102(d)). The Reserve Bank
must know the nature of the dividend
to review the notice for consistency
with the Board’s regulations.
2. Adding an item requesting date of
filing. This information is customarily
requested in Board reporting forms so
that the timing of filings can be tracked.
3. Deleting an item asking the filer to
select whether the institution qualifies
or does not qualify for expedited
treatment. The Board’s regulations do
not provide for expedited treatment of
notices of proposed declarations of
dividends.
4. Deleting an item asking the filer to
select whether the submission is a
notice or application. The Board’s
regulations provide that a filer provide
notice, rather than an application, to the
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appropriate Reserve Bank (12 CFR
238.103).
5. Deleting an item allowing
institutions to attach additional
information required pursuant to the
Office of Thrift Supervision’s
regulations (12 CFR 563.143). The Board
does not have analogous regulations.
6. Adding the option to submit the FR
1583 electronically by Portable
Document Format. Use of electronic
submissions will reduce burden on both
the filer and the Board.
7. Adding two items for the printed
name of the firm Executive Officer and
Secretary who sign the FR 1583. This
change will help Federal Reserve staff
identify the individuals associated with
the filing.
The comment period for this notice
expired on August 16, 2019. The Board
did not receive any comments. The
revisions will be implemented as
proposed.
FEDERAL RESERVE SYSTEM
1. Michael C. Martin Gift Trust,
Kristine M.P. Martin and William S.
Martin as co-trustees; the William S.
Martin Gift Trust, Jeanne Anna Kelso
and William C. Martin as co-trustees;
the William C. Martin GRAT Remainder
Trust fbo William S. Martin, William C.
Martin as trustee; the William C. Martin
GRAT Remainder Trust fbo Michael C.
Martin, William C. Martin as trustee; the
William C. Martin 2019 Grantor
Retained Annuity Trust #1, William C.
Martin as trustee; and the William C.
Martin 2019 Grantor Retained Annuity
Trust #2, William C. Martin as trustee,
all of Ann Arbor, Michigan; to be
approved as members acting in concert
with the Martin Family Control Group,
to retain and acquire voting shares of
Arbor Bancorp, Inc., parent holding
company of Bank of Ann Arbor, both of
Ann Arbor, Michigan.
2. David A. Albin; and David A.
Albin, as general partner of MJD Family
Investments Limited Partnership and
DAA Investments, L.P., all of Newman,
Illinois; as a group acting in concert, to
retain voting shares of Longview Capital
Corporation, Newman, Illinois, parent
holding company of Longview Bank,
Ogden, Illinois; Longview Bank & Trust,
Chrisman, Illinois; and Bank of Gibson
City, Gibson City, Illinois.
Change in Bank Control Notices;
Acquisitions of Shares of a Bank or
Bank Holding Company
Board of Governors of the Federal Reserve
System, September 23, 2019.
Yao-Chin Chao,
Assistant Secretary of the Board.
Board of Governors of the Federal Reserve
System, September 23, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019–20940 Filed 9–25–19; 8:45 am]
BILLING CODE P
The notificants listed below have
applied under the Change in Bank
Control Act (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 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
paragraph 7 of the Act.
Comments regarding each of these
applications must be received at the
Federal Reserve Bank indicated or the
offices of the Board of Governors, Ann
E. Misback, Secretary of the Board, 20th
and Constitution Avenue NW,
Washington, DC 20551–0001, not later
than October 15, 2019.
A. Federal Reserve Bank of Chicago
(Colette A. Fried, Assistant Vice
President) 230 South LaSalle Street,
Chicago, Illinois 60690–1414:
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[FR Doc. 2019–20919 Filed 9–25–19; 8:45 am]
BILLING CODE P
FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
Board of Governors of the
Federal Reserve System.
ACTION: Notice, request for comment.
AGENCY:
The Board of Governors of the
Federal Reserve System (Board) invites
comment on a proposal to extend for
three years, with revision, the Financial
Statements for Holding Companies (FR
Y–9 Reports; OMB No. 7100–0128).
DATES: Comments must be submitted on
or before November 25, 2019.
ADDRESSES: You may submit comments,
identified by FR Y–9 Reports 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: regs.comments@
federalreserve.gov. Include the OMB
SUMMARY:
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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 or to
remove personally identifiable
information at the commenter’s request.
Accordingly, comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper in Room 146, 1709 New York
Avenue NW, Washington, DC 20006,
between 9:00 a.m. and 5:00 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 Office of
Management and Budget (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 Paperwork Reduction Act
(PRA) OMB submission, including the
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.
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.
SUPPLEMENTARY INFORMATION: On June
15, 1984, OMB delegated to the Board
authority under the PRA to approve and
assign OMB control numbers to
collections of information conducted or
sponsored by the Board. In exercising
this delegated authority, the Board is
directed to take every reasonable step to
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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,
With Revision, the Following
Information Collection
Report Title: Financial Statements for
Holding Companies.
Agency form number: FR Y–9C, FR Y–
9LP, FR Y–9SP, FR Y–9ES, and FR Y–
9CS.
OMB control number: 7100–0128.
Frequency: Quarterly, semiannually,
and annually.
Respondents: Bank holding
companies, savings and loan holding
companies, securities holding
companies, and U.S. intermediate
holding companies (collectively, HCs).
Estimated number of respondents: FR
Y–9C (non-advanced approaches HCs
with less than $5 billion in total assets):
155; FR Y–9C (non-advanced
approaches HCs with $5 billion or more
in total assets: 188; FR Y–9C (advanced
approaches HCs): 20; FR Y–9LP: 434; FR
Y–9SP: 3,960; FR Y–9ES: 83; FR Y–9CS:
236.
Estimated average hours per response:
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50841
Reporting
FR Y–9C (non-advanced approaches
HCs with less than $5 billion in total
assets): 40.48 hours; FR Y–9C (nonadvanced approaches HCs with $5
billion or more in total assets): 46.34
hours; FR Y–9C (advanced approaches
HCs): 47.59 hours; FR Y–9LP: 5.27
hours; FR Y–9SP: 5.40 hours; FR Y–9ES:
0.50 hours; FR Y–9CS: 0.50 hours.
Recordkeeping
FR Y–9C (non-advanced approaches
HCs with less than $5 billion in total
assets), FR Y–9C (non-advanced
approaches HCs with $5 billion or more
in total assets), FR Y–9C (advanced
approaches HCs), and FR Y–9LP: 1.00
hours; FR Y–9SP, FR Y–9ES, and FR Y–
9CS: 0.50 hours.
Estimated annual burden hours:
Reporting
FR Y–9C (non-advanced approaches
HCs with less than $5 billion in total
assets): 25,098 hours; FR Y–9C (nonadvanced approaches HCs with $5
billion or more in total assets): 34,848
hours; FR Y–9C (advanced approaches
HCs): 3,807 hours; FR Y–9LP: 9,149
hours; FR Y–9SP: 42,768; FR Y–9ES: 42
hours; FR Y–9CS: 472 hours.
Recordkeeping
FR Y–9C (non-advanced approaches
HCs with less than $5 billion in total
assets): 620 hours; FR Y–9C (nonadvanced approaches HCs with $5
billion or more in total assets): 752
hours; FR Y–9C (advanced approaches
HCs): 80 hours; FR Y–9LP: 1,736 hours;
FR Y–9SP: 3,960 hours; FR Y–9ES: 42
hours; FR Y–9CS: 472 hours.
General description of report:
The FR Y–9C consists of standardized
financial statements similar to the Call
Reports filed by commercial banks.1 The
FR Y–9C collects consolidated data from
HCs and is filed quarterly by top-tier
HCs with total consolidated assets of $3
billion or more.2
The FR Y–9LP, which collects parent
company only financial data, must be
submitted by each HC that files the FR
Y–9C, as well as by each of its
subsidiary HCs.3 The report consists of
standardized financial statements.
The FR Y–9SP is a parent company
only financial statement filed
1 The Call Reports consist of the FFIEC 051, as
well as the Consolidated Reports of Condition and
Income for a Bank with Domestic Offices Only
(FFIEC 041) and the Consolidated Reports of
Condition and Income for a Bank with Domestic
and Foreign Offices (FFIEC 031).
2 Under certain circumstances described in the FR
Y–9C’s General Instructions, HCs with assets under
$3 billion may be required to file the FR Y–9C.
3 A top-tier HC may submit a separate FR Y–9LP
on behalf of each of its lower-tier HCs.
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semiannually by HCs with total
consolidated assets of less than $3
billion. In a banking organization with
total consolidated assets of less than $3
billion that has tiered HCs, each HC in
the organization must submit, or have
the top-tier HC submit on its behalf, a
separate FR Y–9SP. This report is
designed to obtain basic balance sheet
and income data for the parent
company, as well as data on its
intangible assets and intercompany
transactions.
The FR Y–9ES is filed annually by
each employee stock ownership plan
(ESOP) that is also an HC. The report
collects financial data on the ESOP’s
benefit plan activities. The FR Y–9ES
consists of four schedules: A Statement
of Changes in Net Assets Available for
Benefits, a Statement of Net Assets
Available for Benefits, Memoranda, and
Notes to the Financial Statements.
The FR Y–9CS is a free-form
supplemental report that the Board may
utilize to collect critical additional data
deemed to be needed in an expedited
manner from HCs. The data are used to
assess and monitor emerging issues
related to HCs, and the report is
intended to supplement the other FR Y–
9 reports. The data items included on
the FR Y–9CS may change as needed.
Proposed revisions:
FR Y–9C Revisions
The Board has determined it no
longer needs certain FR Y–9C items
from financial institutions with less
than $5 billion in total assets. The Board
proposes to reduce burden on these
financial institutions by adding new and
revised reporting thresholds, reducing
the reporting frequency for certain items
and schedules from quarterly to
semiannually or annually, and
combining certain items. These
revisions would be consistent with
recent and proposed reporting changes
to the Call Report. The proposed
revisions are as follows:
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New and Revised Reporting Thresholds
The Board proposes to add a reporting
threshold of $5 billion or more in total
assets,4 below which HCs would not be
required to complete the following data
items:
• Schedule HI, data item 1(e), Interest
income from trading assets;
• Schedule HI, data item 2(c), Interest
on trading liabilities and other borrowed
money;
• Schedule HI, data item 2(d), Interest
on subordinated notes and debentures
4 The $5 billion asset threshold is based on total
assets as reported for the previous June 30th report
date.
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and on mandatory convertible
securities;
• Schedule HI, data item 5(c), Trading
revenue;
• Schedule HI, data item 5(e),
Venture capital revenue;
• Schedule HI, data item 5(g), Net
securitization income;
• Schedule HI, Memo item 1, Net
interest income on a fully taxable
equivalent basis;
• Schedule HI, Memo item 2, Net
income before applicable income taxes,
and discontinued operations;
• Schedule HI, Memo items 8.a.(1)
through 8.b.(2), Discontinued operations
and applicable income tax effect;
• Schedule HI, Memo items 9(a)
through 9(e), details pertaining to
trading revenue;
• Schedule HI, Memo item 11, Credit
losses on derivatives;
• Schedule HI, Memo items 12(a)
through 12(c), detail pertaining to
Income from the sale and servicing of
mutual funds and annuities (in
domestic offices);
• Schedule HI, Memo items 14(a)
through 14(b)(1), details pertaining to
net gains (losses) recognized in earnings
on assets and liabilities that are reported
at fair value under a fair value option;
• Schedule HI, Memo item 15, Stockbased employee compensation expense
(net of tax effects) calculated for all
awards under the fair value method;
• Schedule HI–B, Part I, data item 6,
columns A and B, Loans to foreign
governments and official institutions;
• Schedule HI–B, Part I, Memo item
2, columns A and B, Loans secured by
real estate to non-U.S. addressees;
• Schedule HI–B, Part I, Memo item
3, Uncollectible retail credit card fees
and finance charges reversed against
income;
• Schedule HI–B, Part II, Memo item
1, Allocated transfer risk reserve;
• Schedule HI–B, Part II, Memo item
2, Separate valuation allowance for
uncollectible retail credit card fees and
finance charges;
• Schedule HI–B, Part II, Memo item
3, Amount of allowance for loan and
lease losses attributable to retail credit
card fees and finance charges;
• Schedule HI–B, Part II, Memo item
4, Amount of allowance for postacquisition credit losses on purchased
credit-impaired loans;
• Schedule HI–C, Disaggregated Data
on the Allowance for Loan and Lease
Losses
• Schedule HC–C, data item 10(a),
Leases to individuals for household,
family, and other personal expenditures;
• Schedule HC–C, data item 10(b), All
other leases;
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• Schedule HC–C, Memo item 3,
Loans secured by real estate to non-U.S.
addressees;
• Schedule HC–C, Memo item 4,
Outstanding credit card fees and finance
charges;
• Schedule HC–D, Trading Assets and
Liabilities; 5
• Schedule HC–K, data item 4(a),
Trading assets;
• Schedule HC–L, data items 1(b)(1),
Unused consumer credit card lines, and
1(b)(2), Other unused credit card lines;
• Schedule HC–L, data item 1(d),
Securities underwriting;
• Schedule HC–L, data item 2(a),
Amount of financial standby letters of
credit conveyed to others;
• Schedule HC–L, data item 3(a),
Amount of performance standby letters
of credit conveyed to others;
• Schedule HC–L, data items 7(a)
through 7(d)(2)(b), pertaining to credit
derivatives;
• Schedule HC–L, data items 11(a)
through 14(b)(2), pertaining to
derivatives positions;
• Schedule HC–M, Memo items
6(a)(1)(a)(1) though 6(d), pertaining to
assets covered by loss-sharing
agreements with the Federal Deposit
Insurance Corporation (FDIC);
• Schedule HC–N, data items
12(a)(1)(a) through 12(f), pertaining to
loans and leases which are covered by
loss-sharing agreements with the FDIC;
• Schedule HC–N, Memo item 6, Fair
value of derivative contract amounts
carried as assets; 6
• Schedule HC–P, 1–4 Family
Residential Mortgage Banking Activities
in Domestic Offices;
• Schedule HC–Q, Assets and
Liabilities Measured at Fair Value;
• Schedule HC–S, Servicing,
Securitization, and Asset Sale
Activities; and
• Schedule HC–V, Variable Interest
Entities.
Reduced Reporting Frequencies
For HCs with less than $5 billion in
total assets, the Board proposes to
reduce the reporting frequency from
quarterly to semi-annually (June and
December reporting) for the following
items:
5 Currently, Schedule HC–D must be completed
by holding companies with total trading assets of
$10 million or more in any of the four preceding
calendar quarters. The Board proposes to modify
the existing threshold by adding a reporting
threshold of $5 billion or more in total assets.
6 Currently, this item must be completed by
holding companies with total assets of $1 billion or
more, or with $2 billion or more in par/notional
amounts of off-balance-sheet derivative contracts.
The Board proposes to increase the reporting
threshold from $1 billion to $5 billion or more in
total assets.
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• Schedule HI, Memo item 17, Otherthan-temporary impairment losses on
held-to-maturity and available-for-sale
debt securities recognized in earnings;
• Schedule HI–C, Disaggregated Data
on the Allowance for Credit Losses; 7
• Schedule HC–C, Memo items 1(a)(1)
through 1(f)(3)(c) pertaining to loans
restructured in troubled debt
restructurings that are in compliance
with their modified terms;
• Schedule HC–N, Memo items
1(a)(1) through 1(f)(3)(c) pertaining to
loans restructured in troubled debt
restructurings that are in compliance
with their modified terms;
• Schedule HC–R, Part II, items 1
through 25, columns A through U; 8
7 In June 2016, the Financial Accounting
Standard Board (FASB) issued Accounting
Standard Update 2016–13 (ASU 2016–13), which
introduced the current expected credit loss
methodology for estimating allowances for credit
losses. In response to ASU 2016–13, the Board
added Schedule HI–C Part II, Disaggregated Data on
Allowances for Credit Losses, to capture
disaggregated data on allowances for credit losses
and held-to-maturity securities from HCs that have
adopted ASU 2016–13, effective, March 31, 2019.
See 83 FR 63870 (December 12, 2018). The Board
is proposing to add a semiannual reporting
frequency for Schedule HI–C, Part II for HCs with
less than $5 billion in total assets. For HCs with less
than $5 billion in total assets that have not adopted
ASU 2016–13, the Board proposes to collect the
recorded investment instead of the amortized cost
and collect the allowance balance on loans and
leases held for investment, on Schedule HI–C Part
II data items 1–6, on a semiannual basis. HCs with
less than $5 billion in total assets that have adopted
ASU 2016–13, should report the amortized cost and
allowance balance for credit losses on held-tomaturity securities on Schedule HI–C, Part II data
items 1–6 and the allowance balance on held-tomaturity securities on data items 7–11, semiannually. The proposed changes become effective
September 2019, and are reportable starting in
December 2019. The Board believes that semiannual information on the composition of the
allowance for credit losses in relation to the
amortized cost for each loan category, and
disaggregated information on HTM securities
allowances, is sufficient to support the Board’s
analysis of the allowance and credit risk
management. The data on allowance allocations by
loan category, when reviewed in conjunction with
the past due and nonaccrual data reported by loan
category in Schedule HC–N, which will continue to
be reported on a quarterly basis, assist the staff in
assessing a HC’s credit risk exposures and
evaluating the appropriateness of the overall level
of its Allowance for Loan and Lease Losses and its
allocations by loan category. If changes in the
quarterly past due and nonaccrual data by loan
category at individual HCs in quarters when the
disaggregated allowance data would not be reported
in the FR Y–9C raise questions about the
composition of the allowance, supervisory followup can be undertaken on a case-by-case basis.
8 In these items, HCs currently report detailed
information about the risk-weighting of various
types of assets and other exposures under the
Federal Reserve’s’ regulatory capital rules. HCs still
would need to calculate risk-weighted assets,
maintain appropriate documentation for this
calculation, and report items 26 through 31 of Part
II, if applicable, on a quarterly basis. The Federal
Reserve does not believe it is necessary for HCs to
continue to provide the details of their riskweighting allocations and calculations in Schedule
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• Schedule HC–R, Part II,
Memorandum items 1 through 3, all
subitems, columns A through G.9
In addition, for HCs with less than $5
billion in total assets, the Board
proposes to reduce the reporting
frequency from quarterly to annually on
a calendar year-to-date basis in the
December report only for the following
items:
• Schedule HI, Memo items 6(a)
through 6(j), Other noninterest income;
• Schedule HI, Memo items 7(a)
though 7(p), Other noninterest expense;
and
• Schedule HI, Memo item 16,
Noncash income from negative
amortization on closed-end loans
secured by 1–4 family residential
properties.
Combined Data Items
For HCs with less than $5 billion in
total assets, the Board proposes to
combine certain data items,10 all
reportable on a quarterly basis, as
follows:
• Combine information currently
reported in Schedule HI data items
5(d)(1) through 5(d)(5), pertaining to
various fees and commissions on
securities brokerage investments,
investment banking and insurance, into
new data items 5(d)(6) and 5(d)(7);
• Combine information currently
reported in Schedule HI–B Part I, data
items 4(a) and 4(b), columns A and B,
pertaining to commercial and industrial
loans, into new data item 4(c), columns
A and B;
• Combine information currently
reported in Schedule HI–B Part I, data
items 8(a) and 8(b), columns A and B,
pertaining to lease finance receivables,
into new data item 8(c), columns A and
B;
• Combine information currently
reported in Schedule HC–B, data items
HC–R, Part II, on a quarterly basis as the Federal
Reserve can adequately review regulatory capital
calculations for the first and third calendar quarters
as part of on-site examinations or through other
types of periodic monitoring, as necessary.
9 HCs currently report detailed information in
these items about derivative exposures that are
elements of the risk-weighting process for these
exposures. The Board does not believe it is
necessary for a HC with less than $5 billion in total
assets to continue to report these amounts on a
quarterly basis. Generally, HCs with less than $5
billion in total assets do not have a significant
amount of derivatives contracts, and the Board can
review information about HCs’ risk-weighting
calculations for derivative exposures for the first
and third calendar quarters, as necessary, as part of
on-site examinations or through other periodic
monitoring.
10 HCs with less than $5 billion in total assets
would report only the newly combined data items.
HCs with $5 billion or more in total assets would
continue to report only the currently existing data
items.
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Frm 00027
Fmt 4703
Sfmt 4703
50843
4(a)(1) through 4(a)(3), columns A
through D, pertaining to residential
pass-through securities, into new item
4(a)(4), columns A through D;
• Combine information currently
reported in Schedule HC–C, data items
4(a) and 4(b), column A, pertaining to
commercial and industrial loans, into
new data item 4(c), column A;
• Combine information currently
reported in Schedule HC–C, data items
9(b)(1) and 9(b)(2), column A and B,
pertaining to loans for purchasing or
carrying securities and all other loans,
into new data item 9(b)(3), columns A
and B;
• Combine information currently
reported in Schedule HC–C, data items
10(a) and 10(b), column A, pertaining to
lease financing receivables (net of
unearned income), into new data item
10(c), column A;
• Combine information currently
reported in Schedule HC–C, Memo
items 1(e)(1) and 1(e)(2), pertaining to
commercial and industrial loans, into
new memo item (1)(e)(3);
• Combine information currently
reported in Schedule HC–C, Memo
items 12(a) though 12(d), pertaining to
loans (not subject to the requirements of
FASB ASC 310–30 (former AICPA
Statement of Position 03–3)) and leases
held for investment that are acquired in
business combinations with acquisition
dates in the current calendar year, into
new memo item 12(e);
• Combine information currently
reported in Schedule HC–N, data items
8(a) and 8(b), columns A, B and C,
pertaining to leases financing
receivables, into new data item 8(c),
columns A, B and C; and
• Combine information currently
reported in Schedule HC–N, Memo
items 1(e)(1) and 1(e)(2), columns A, B
and C, pertaining to commercial and
industrial loans, into new memo item
1(e)(3), columns A, B and C.
Recordkeeping Requirements
The instructions to the FR Y–9C, FR
Y–9LP, FR Y–9SP, and FR Y–9ES state
that respondents must maintain in their
files a manually signed and attested
printed copy of the data submitted on
the form, and should retain workpapers
and other records used in the
preparation of those reports. The Board
is proposing to revise the FR Y–9
information collection to account for
these recordkeeping provisions, which
are not currently accounted for.
Legal authorization and
confidentiality: The Board has the
authority to impose the reporting and
recordkeeping requirements associated
with the Y–9 family of reports on bank
holding companies (‘‘BHCs’’) pursuant
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Federal Register / Vol. 84, No. 187 / Thursday, September 26, 2019 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
to section 5 of the Bank Holding
Company Act (‘‘BHC Act’’), (12 U.S.C.
1844); on savings and loan holding
companies pursuant to section 10(b)(2)
and (3) of the Home Owners’ Loan Act,
(12 U.S.C. 1467a(b)(2) and (3)), as
amended by sections 369(8) and
604(h)(2) of the Dodd-Frank Wall Street
and Consumer Protection Act (‘‘DoddFrank Act’’); on U.S. intermediate
holding companies (‘‘U.S. IHCs’’)
pursuant to section 5 of the BHC Act,
(12 U.S.C 1844), as well as pursuant to
sections 102(a)(1) and 165 of the DoddFrank Act, (12 U.S.C. 511(a)(1) and
5365)11; and on securities holding
companies pursuant to section 618 of
the Dodd-Frank Act, (12 U.S.C.
1850a(c)(1)(A)). The obligation to
submit the FR Y–9 series of reports, and
the recordkeeping requirements set forth
in the respective instructions to each
report, are mandatory.
With respect to the FR Y–9C report,
Schedule HI’s item 7(g) ‘‘FDIC deposit
insurance assessments,’’ Schedule HC–
P’s item 7(a) ‘‘Representation and
warranty reserves for 1–4 family
residential mortgage loans sold to U.S.
government agencies and government
sponsored agencies,’’ and Schedule HC–
P’s item 7(b) ‘‘Representation and
warranty reserves for 1–4 family
residential mortgage loans sold to other
parties’’ are considered confidential
commercial and financial information.
Such treatment may be appropriate
under exemption 4 of the Freedom of
Information Act (‘‘FOIA’’), (5 U.S.C.
552(b)(4)), because these data items
reflect commercial and financial
information that is both customarily and
actually treated as private by the
submitter, and which the Board has
previously assured submitters will be
treated as confidential. It also appears
that disclosing these data items may
reveal confidential examination and
supervisory information, and in such
instances, this information may also be
11 Section 165(b)(2) of Title I of the Dodd-Frank
Act, (12 U.S.C. 5365(b)(2)), refers to ‘‘foreign-based
bank holding company.’’ Section 102(a)(1) of the
Dodd-Frank Act, (12 U.S.C. 5311(a)(1)), defines
‘‘bank holding company’’ for purposes of Title I of
the Dodd-Frank Act to include foreign banking
organizations that are treated as bank holding
companies under section 8(a) of the International
Banking Act, (12 U.S.C. 3106(a)). The Board has
required, pursuant to section 165(b)(1)(B)(iv) of the
Dodd-Frank Act, (12 U.S.C. 5365(b)(1)(B)(iv)),
certain foreign banking organizations subject to
section 165 of the Dodd-Frank Act to form U.S.
intermediate holding companies. Accordingly, the
parent foreign-based organization of a U.S. IHC is
treated as a BHC for purposes of the BHC Act and
section 165 of the Dodd-Frank Act. Because Section
5(c) of the BHC Act authorizes the Board to require
reports from subsidiaries of BHCs, section 5(c)
provides additional authority to require U.S. IHCs
to report the information contained in the FR Y–
9 series of reports.
VerDate Sep<11>2014
16:48 Sep 25, 2019
Jkt 247001
withheld pursuant to exemption 8 of the
FOIA, (5 U.S.C. 552(b)(8)), which
protects information related to the
supervision or examination of a
regulated financial institution.
In addition, for both the FR Y–9C
report and the FR Y–9SP report,
Schedule HC’s memorandum item 2.b.,
the name and email address of the
external auditing firm’s engagement
partner, is considered confidential
commercial information and protected
by exemption 4 of the FOIA, (5 U.S.C.
552(b)(4)), if the identity of the
engagement partner is treated as private
information by HCs. The Board has
assured respondents that this
information will be treated as
confidential since the collection of this
data item was proposed in 2004.
Aside from the data items described
above, the remaining data items on the
FR Y–9C report and the FR Y–9SP
report are generally not accorded
confidential treatment. The data items
collected on FR Y–9LP, FR Y–9ES, and
FR Y–9CS12 reports, are also generally
not accorded confidential treatment. As
provided in the Board’s Rules Regarding
Availability of Information (12 CFR part
261), however, a respondent may
request confidential treatment for any
data items the respondent believes
should be withheld pursuant to a FOIA
exemption. The Board will review any
such request to determine if confidential
treatment is appropriate, and will
inform the respondent if the request for
confidential treatment has been denied.
To the extent the instructions to the
FR Y–9C, FR Y–9LP, FR Y–9SP, and FR
Y–9ES reports each respectively direct
the financial institution to retain the
workpapers and related materials used
in preparation of each report, such
material would only be obtained by the
Board as part of the examination or
supervision of the financial institution.
Accordingly, such information may be
considered confidential pursuant to
exemption 8 of the FOIA. (5 U.S.C.
552(b)(8)). In addition, the workpapers
and related materials may also be
protected by exemption 4 of the FOIA,
to the extent such financial information
is treated as confidential by the
respondent. (5 U.S.C. 552(b)(4)).
Consultation outside the agency: The
Board consulted with the FDIC and the
Office of the Comptroller of the
12 The FR Y–9CS is a supplemental report that
may be utilized by the Board to collect additional
information that is needed in an expedited manner
from HCs. The information collected on this
supplemental report is subject to change as needed.
Generally, the FR Y–9CS report is treated as public.
However, where appropriate, data items on the FR
Y–9CS report may be withheld under exemptions
4 and/or 8 of the Freedom of Information Act, (5
U.S.C. 552(b)(4) and (8)).
PO 00000
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Fmt 4703
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Currency in regard to these proposed
revisions.
Board of Governors of the Federal Reserve
System, September 23, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019–20928 Filed 9–25–19; 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.
AGENCY:
The Board of Governors of the
Federal Reserve System (Board) is
adopting a proposal to extend for three
years, with revision, the Payments
Systems Surveys (FR 3054; OMB No.
7100–0332). The revisions are
applicable immediately.
SUMMARY:
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. Office of Management and
Budget (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.
A copy of the PRA OMB submission,
including the reporting form and
instructions, supporting statement, and
other documentation will be placed into
OMB’s public docket files. These
documents also are available on the
Federal Reserve 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 above.
On June
15, 1984, OMB delegated to the Board
authority under the Paperwork
Reduction Act (PRA) to approve and
assign OMB control numbers to
collections of information conducted or
sponsored by the Board. Boardapproved collections of information are
incorporated into the official OMB
inventory of currently approved
collections of information. Copies of the
PRA Submission, supporting
statements, and approved collection of
information instrument(s) are placed
into OMB’s public docket files.
SUPPLEMENTARY INFORMATION:
E:\FR\FM\26SEN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 187 (Thursday, September 26, 2019)]
[Notices]
[Pages 50840-50844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20928]
-----------------------------------------------------------------------
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, with revision,
the Financial Statements for Holding Companies (FR Y-9 Reports; OMB No.
7100-0128).
DATES: Comments must be submitted on or before November 25, 2019.
ADDRESSES: You may submit comments, identified by FR Y-9 Reports 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 the OMB
[[Page 50841]]
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 or to remove
personally identifiable information at the commenter's request.
Accordingly, comments will not be edited to remove any identifying or
contact information. Public comments may also be viewed electronically
or in paper in Room 146, 1709 New York Avenue NW, Washington, DC 20006,
between 9:00 a.m. and 5:00 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
Office of Management and Budget (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 Paperwork Reduction Act
(PRA) OMB submission, including the 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.
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.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the PRA to approve and assign OMB control numbers to
collections of information 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, With
Revision, the Following Information Collection
Report Title: Financial Statements for Holding Companies.
Agency form number: FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9ES, and FR
Y-9CS.
OMB control number: 7100-0128.
Frequency: Quarterly, semiannually, and annually.
Respondents: Bank holding companies, savings and loan holding
companies, securities holding companies, and U.S. intermediate holding
companies (collectively, HCs).
Estimated number of respondents: FR Y-9C (non-advanced approaches
HCs with less than $5 billion in total assets): 155; FR Y-9C (non-
advanced approaches HCs with $5 billion or more in total assets: 188;
FR Y-9C (advanced approaches HCs): 20; FR Y-9LP: 434; FR Y-9SP: 3,960;
FR Y-9ES: 83; FR Y-9CS: 236.
Estimated average hours per response:
Reporting
FR Y-9C (non-advanced approaches HCs with less than $5 billion in
total assets): 40.48 hours; FR Y-9C (non-advanced approaches HCs with
$5 billion or more in total assets): 46.34 hours; FR Y-9C (advanced
approaches HCs): 47.59 hours; FR Y-9LP: 5.27 hours; FR Y-9SP: 5.40
hours; FR Y-9ES: 0.50 hours; FR Y-9CS: 0.50 hours.
Recordkeeping
FR Y-9C (non-advanced approaches HCs with less than $5 billion in
total assets), FR Y-9C (non-advanced approaches HCs with $5 billion or
more in total assets), FR Y-9C (advanced approaches HCs), and FR Y-9LP:
1.00 hours; FR Y-9SP, FR Y-9ES, and FR Y-9CS: 0.50 hours.
Estimated annual burden hours:
Reporting
FR Y-9C (non-advanced approaches HCs with less than $5 billion in
total assets): 25,098 hours; FR Y-9C (non-advanced approaches HCs with
$5 billion or more in total assets): 34,848 hours; FR Y-9C (advanced
approaches HCs): 3,807 hours; FR Y-9LP: 9,149 hours; FR Y-9SP: 42,768;
FR Y-9ES: 42 hours; FR Y-9CS: 472 hours.
Recordkeeping
FR Y-9C (non-advanced approaches HCs with less than $5 billion in
total assets): 620 hours; FR Y-9C (non-advanced approaches HCs with $5
billion or more in total assets): 752 hours; FR Y-9C (advanced
approaches HCs): 80 hours; FR Y-9LP: 1,736 hours; FR Y-9SP: 3,960
hours; FR Y-9ES: 42 hours; FR Y-9CS: 472 hours.
General description of report:
The FR Y-9C consists of standardized financial statements similar
to the Call Reports filed by commercial banks.\1\ The FR Y-9C collects
consolidated data from HCs and is filed quarterly by top-tier HCs with
total consolidated assets of $3 billion or more.\2\
---------------------------------------------------------------------------
\1\ The Call Reports consist of the FFIEC 051, as well as the
Consolidated Reports of Condition and Income for a Bank with
Domestic Offices Only (FFIEC 041) and the Consolidated Reports of
Condition and Income for a Bank with Domestic and Foreign Offices
(FFIEC 031).
\2\ Under certain circumstances described in the FR Y-9C's
General Instructions, HCs with assets under $3 billion may be
required to file the FR Y-9C.
---------------------------------------------------------------------------
The FR Y-9LP, which collects parent company only financial data,
must be submitted by each HC that files the FR Y-9C, as well as by each
of its subsidiary HCs.\3\ The report consists of standardized financial
statements.
---------------------------------------------------------------------------
\3\ A top-tier HC may submit a separate FR Y-9LP on behalf of
each of its lower-tier HCs.
---------------------------------------------------------------------------
The FR Y-9SP is a parent company only financial statement filed
[[Page 50842]]
semiannually by HCs with total consolidated assets of less than $3
billion. In a banking organization with total consolidated assets of
less than $3 billion that has tiered HCs, each HC in the organization
must submit, or have the top-tier HC submit on its behalf, a separate
FR Y-9SP. This report is designed to obtain basic balance sheet and
income data for the parent company, as well as data on its intangible
assets and intercompany transactions.
The FR Y-9ES is filed annually by each employee stock ownership
plan (ESOP) that is also an HC. The report collects financial data on
the ESOP's benefit plan activities. The FR Y-9ES consists of four
schedules: A Statement of Changes in Net Assets Available for Benefits,
a Statement of Net Assets Available for Benefits, Memoranda, and Notes
to the Financial Statements.
The FR Y-9CS is a free-form supplemental report that the Board may
utilize to collect critical additional data deemed to be needed in an
expedited manner from HCs. The data are used to assess and monitor
emerging issues related to HCs, and the report is intended to
supplement the other FR Y-9 reports. The data items included on the FR
Y-9CS may change as needed.
Proposed revisions:
FR Y-9C Revisions
The Board has determined it no longer needs certain FR Y-9C items
from financial institutions with less than $5 billion in total assets.
The Board proposes to reduce burden on these financial institutions by
adding new and revised reporting thresholds, reducing the reporting
frequency for certain items and schedules from quarterly to
semiannually or annually, and combining certain items. These revisions
would be consistent with recent and proposed reporting changes to the
Call Report. The proposed revisions are as follows:
New and Revised Reporting Thresholds
The Board proposes to add a reporting threshold of $5 billion or
more in total assets,\4\ below which HCs would not be required to
complete the following data items:
---------------------------------------------------------------------------
\4\ The $5 billion asset threshold is based on total assets as
reported for the previous June 30th report date.
---------------------------------------------------------------------------
Schedule HI, data item 1(e), Interest income from trading
assets;
Schedule HI, data item 2(c), Interest on trading
liabilities and other borrowed money;
Schedule HI, data item 2(d), Interest on subordinated
notes and debentures and on mandatory convertible securities;
Schedule HI, data item 5(c), Trading revenue;
Schedule HI, data item 5(e), Venture capital revenue;
Schedule HI, data item 5(g), Net securitization income;
Schedule HI, Memo item 1, Net interest income on a fully
taxable equivalent basis;
Schedule HI, Memo item 2, Net income before applicable
income taxes, and discontinued operations;
Schedule HI, Memo items 8.a.(1) through 8.b.(2),
Discontinued operations and applicable income tax effect;
Schedule HI, Memo items 9(a) through 9(e), details
pertaining to trading revenue;
Schedule HI, Memo item 11, Credit losses on derivatives;
Schedule HI, Memo items 12(a) through 12(c), detail
pertaining to Income from the sale and servicing of mutual funds and
annuities (in domestic offices);
Schedule HI, Memo items 14(a) through 14(b)(1), details
pertaining to net gains (losses) recognized in earnings on assets and
liabilities that are reported at fair value under a fair value option;
Schedule HI, Memo item 15, Stock-based employee
compensation expense (net of tax effects) calculated for all awards
under the fair value method;
Schedule HI-B, Part I, data item 6, columns A and B, Loans
to foreign governments and official institutions;
Schedule HI-B, Part I, Memo item 2, columns A and B, Loans
secured by real estate to non-U.S. addressees;
Schedule HI-B, Part I, Memo item 3, Uncollectible retail
credit card fees and finance charges reversed against income;
Schedule HI-B, Part II, Memo item 1, Allocated transfer
risk reserve;
Schedule HI-B, Part II, Memo item 2, Separate valuation
allowance for uncollectible retail credit card fees and finance
charges;
Schedule HI-B, Part II, Memo item 3, Amount of allowance
for loan and lease losses attributable to retail credit card fees and
finance charges;
Schedule HI-B, Part II, Memo item 4, Amount of allowance
for post-acquisition credit losses on purchased credit-impaired loans;
Schedule HI-C, Disaggregated Data on the Allowance for
Loan and Lease Losses
Schedule HC-C, data item 10(a), Leases to individuals for
household, family, and other personal expenditures;
Schedule HC-C, data item 10(b), All other leases;
Schedule HC-C, Memo item 3, Loans secured by real estate
to non-U.S. addressees;
Schedule HC-C, Memo item 4, Outstanding credit card fees
and finance charges;
Schedule HC-D, Trading Assets and Liabilities; \5\
---------------------------------------------------------------------------
\5\ Currently, Schedule HC-D must be completed by holding
companies with total trading assets of $10 million or more in any of
the four preceding calendar quarters. The Board proposes to modify
the existing threshold by adding a reporting threshold of $5 billion
or more in total assets.
---------------------------------------------------------------------------
Schedule HC-K, data item 4(a), Trading assets;
Schedule HC-L, data items 1(b)(1), Unused consumer credit
card lines, and 1(b)(2), Other unused credit card lines;
Schedule HC-L, data item 1(d), Securities underwriting;
Schedule HC-L, data item 2(a), Amount of financial standby
letters of credit conveyed to others;
Schedule HC-L, data item 3(a), Amount of performance
standby letters of credit conveyed to others;
Schedule HC-L, data items 7(a) through 7(d)(2)(b),
pertaining to credit derivatives;
Schedule HC-L, data items 11(a) through 14(b)(2),
pertaining to derivatives positions;
Schedule HC-M, Memo items 6(a)(1)(a)(1) though 6(d),
pertaining to assets covered by loss-sharing agreements with the
Federal Deposit Insurance Corporation (FDIC);
Schedule HC-N, data items 12(a)(1)(a) through 12(f),
pertaining to loans and leases which are covered by loss-sharing
agreements with the FDIC;
Schedule HC-N, Memo item 6, Fair value of derivative
contract amounts carried as assets; \6\
---------------------------------------------------------------------------
\6\ Currently, this item must be completed by holding companies
with total assets of $1 billion or more, or with $2 billion or more
in par/notional amounts of off-balance-sheet derivative contracts.
The Board proposes to increase the reporting threshold from $1
billion to $5 billion or more in total assets.
---------------------------------------------------------------------------
Schedule HC-P, 1-4 Family Residential Mortgage Banking
Activities in Domestic Offices;
Schedule HC-Q, Assets and Liabilities Measured at Fair
Value;
Schedule HC-S, Servicing, Securitization, and Asset Sale
Activities; and
Schedule HC-V, Variable Interest Entities.
Reduced Reporting Frequencies
For HCs with less than $5 billion in total assets, the Board
proposes to reduce the reporting frequency from quarterly to semi-
annually (June and December reporting) for the following items:
[[Page 50843]]
Schedule HI, Memo item 17, Other-than-temporary impairment
losses on held-to-maturity and available-for-sale debt securities
recognized in earnings;
Schedule HI-C, Disaggregated Data on the Allowance for
Credit Losses; \7\
---------------------------------------------------------------------------
\7\ In June 2016, the Financial Accounting Standard Board (FASB)
issued Accounting Standard Update 2016-13 (ASU 2016-13), which
introduced the current expected credit loss methodology for
estimating allowances for credit losses. In response to ASU 2016-13,
the Board added Schedule HI-C Part II, Disaggregated Data on
Allowances for Credit Losses, to capture disaggregated data on
allowances for credit losses and held-to-maturity securities from
HCs that have adopted ASU 2016-13, effective, March 31, 2019. See 83
FR 63870 (December 12, 2018). The Board is proposing to add a
semiannual reporting frequency for Schedule HI-C, Part II for HCs
with less than $5 billion in total assets. For HCs with less than $5
billion in total assets that have not adopted ASU 2016-13, the Board
proposes to collect the recorded investment instead of the amortized
cost and collect the allowance balance on loans and leases held for
investment, on Schedule HI-C Part II data items 1-6, on a semiannual
basis. HCs with less than $5 billion in total assets that have
adopted ASU 2016-13, should report the amortized cost and allowance
balance for credit losses on held-to-maturity securities on Schedule
HI-C, Part II data items 1-6 and the allowance balance on held-to-
maturity securities on data items 7-11, semi-annually. The proposed
changes become effective September 2019, and are reportable starting
in December 2019. The Board believes that semi-annual information on
the composition of the allowance for credit losses in relation to
the amortized cost for each loan category, and disaggregated
information on HTM securities allowances, is sufficient to support
the Board's analysis of the allowance and credit risk management.
The data on allowance allocations by loan category, when reviewed in
conjunction with the past due and nonaccrual data reported by loan
category in Schedule HC-N, which will continue to be reported on a
quarterly basis, assist the staff in assessing a HC's credit risk
exposures and evaluating the appropriateness of the overall level of
its Allowance for Loan and Lease Losses and its allocations by loan
category. If changes in the quarterly past due and nonaccrual data
by loan category at individual HCs in quarters when the
disaggregated allowance data would not be reported in the FR Y-9C
raise questions about the composition of the allowance, supervisory
follow-up can be undertaken on a case-by-case basis.
---------------------------------------------------------------------------
Schedule HC-C, Memo items 1(a)(1) through 1(f)(3)(c)
pertaining to loans restructured in troubled debt restructurings that
are in compliance with their modified terms;
Schedule HC-N, Memo items 1(a)(1) through 1(f)(3)(c)
pertaining to loans restructured in troubled debt restructurings that
are in compliance with their modified terms;
Schedule HC-R, Part II, items 1 through 25, columns A
through U; \8\
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\8\ In these items, HCs currently report detailed information
about the risk-weighting of various types of assets and other
exposures under the Federal Reserve's' regulatory capital rules. HCs
still would need to calculate risk-weighted assets, maintain
appropriate documentation for this calculation, and report items 26
through 31 of Part II, if applicable, on a quarterly basis. The
Federal Reserve does not believe it is necessary for HCs to continue
to provide the details of their risk-weighting allocations and
calculations in Schedule HC-R, Part II, on a quarterly basis as the
Federal Reserve can adequately review regulatory capital
calculations for the first and third calendar quarters as part of
on-site examinations or through other types of periodic monitoring,
as necessary.
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Schedule HC-R, Part II, Memorandum items 1 through 3, all
subitems, columns A through G.\9\
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\9\ HCs currently report detailed information in these items
about derivative exposures that are elements of the risk-weighting
process for these exposures. The Board does not believe it is
necessary for a HC with less than $5 billion in total assets to
continue to report these amounts on a quarterly basis. Generally,
HCs with less than $5 billion in total assets do not have a
significant amount of derivatives contracts, and the Board can
review information about HCs' risk-weighting calculations for
derivative exposures for the first and third calendar quarters, as
necessary, as part of on-site examinations or through other periodic
monitoring.
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In addition, for HCs with less than $5 billion in total assets, the
Board proposes to reduce the reporting frequency from quarterly to
annually on a calendar year-to-date basis in the December report only
for the following items:
Schedule HI, Memo items 6(a) through 6(j), Other
noninterest income;
Schedule HI, Memo items 7(a) though 7(p), Other
noninterest expense; and
Schedule HI, Memo item 16, Noncash income from negative
amortization on closed-end loans secured by 1-4 family residential
properties.
Combined Data Items
For HCs with less than $5 billion in total assets, the Board
proposes to combine certain data items,\10\ all reportable on a
quarterly basis, as follows:
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\10\ HCs with less than $5 billion in total assets would report
only the newly combined data items. HCs with $5 billion or more in
total assets would continue to report only the currently existing
data items.
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Combine information currently reported in Schedule HI data
items 5(d)(1) through 5(d)(5), pertaining to various fees and
commissions on securities brokerage investments, investment banking and
insurance, into new data items 5(d)(6) and 5(d)(7);
Combine information currently reported in Schedule HI-B
Part I, data items 4(a) and 4(b), columns A and B, pertaining to
commercial and industrial loans, into new data item 4(c), columns A and
B;
Combine information currently reported in Schedule HI-B
Part I, data items 8(a) and 8(b), columns A and B, pertaining to lease
finance receivables, into new data item 8(c), columns A and B;
Combine information currently reported in Schedule HC-B,
data items 4(a)(1) through 4(a)(3), columns A through D, pertaining to
residential pass-through securities, into new item 4(a)(4), columns A
through D;
Combine information currently reported in Schedule HC-C,
data items 4(a) and 4(b), column A, pertaining to commercial and
industrial loans, into new data item 4(c), column A;
Combine information currently reported in Schedule HC-C,
data items 9(b)(1) and 9(b)(2), column A and B, pertaining to loans for
purchasing or carrying securities and all other loans, into new data
item 9(b)(3), columns A and B;
Combine information currently reported in Schedule HC-C,
data items 10(a) and 10(b), column A, pertaining to lease financing
receivables (net of unearned income), into new data item 10(c), column
A;
Combine information currently reported in Schedule HC-C,
Memo items 1(e)(1) and 1(e)(2), pertaining to commercial and industrial
loans, into new memo item (1)(e)(3);
Combine information currently reported in Schedule HC-C,
Memo items 12(a) though 12(d), pertaining to loans (not subject to the
requirements of FASB ASC 310-30 (former AICPA Statement of Position 03-
3)) and leases held for investment that are acquired in business
combinations with acquisition dates in the current calendar year, into
new memo item 12(e);
Combine information currently reported in Schedule HC-N,
data items 8(a) and 8(b), columns A, B and C, pertaining to leases
financing receivables, into new data item 8(c), columns A, B and C; and
Combine information currently reported in Schedule HC-N,
Memo items 1(e)(1) and 1(e)(2), columns A, B and C, pertaining to
commercial and industrial loans, into new memo item 1(e)(3), columns A,
B and C.
Recordkeeping Requirements
The instructions to the FR Y-9C, FR Y-9LP, FR Y-9SP, and FR Y-9ES
state that respondents must maintain in their files a manually signed
and attested printed copy of the data submitted on the form, and should
retain workpapers and other records used in the preparation of those
reports. The Board is proposing to revise the FR Y-9 information
collection to account for these recordkeeping provisions, which are not
currently accounted for.
Legal authorization and confidentiality: The Board has the
authority to impose the reporting and recordkeeping requirements
associated with the Y-9 family of reports on bank holding companies
(``BHCs'') pursuant
[[Page 50844]]
to section 5 of the Bank Holding Company Act (``BHC Act''), (12 U.S.C.
1844); on savings and loan holding companies pursuant to section
10(b)(2) and (3) of the Home Owners' Loan Act, (12 U.S.C. 1467a(b)(2)
and (3)), as amended by sections 369(8) and 604(h)(2) of the Dodd-Frank
Wall Street and Consumer Protection Act (``Dodd-Frank Act''); on U.S.
intermediate holding companies (``U.S. IHCs'') pursuant to section 5 of
the BHC Act, (12 U.S.C 1844), as well as pursuant to sections 102(a)(1)
and 165 of the Dodd-Frank Act, (12 U.S.C. 511(a)(1) and 5365)\11\; and
on securities holding companies pursuant to section 618 of the Dodd-
Frank Act, (12 U.S.C. 1850a(c)(1)(A)). The obligation to submit the FR
Y-9 series of reports, and the recordkeeping requirements set forth in
the respective instructions to each report, are mandatory.
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\11\ Section 165(b)(2) of Title I of the Dodd-Frank Act, (12
U.S.C. 5365(b)(2)), refers to ``foreign-based bank holding
company.'' Section 102(a)(1) of the Dodd-Frank Act, (12 U.S.C.
5311(a)(1)), defines ``bank holding company'' for purposes of Title
I of the Dodd-Frank Act to include foreign banking organizations
that are treated as bank holding companies under section 8(a) of the
International Banking Act, (12 U.S.C. 3106(a)). The Board has
required, pursuant to section 165(b)(1)(B)(iv) of the Dodd-Frank
Act, (12 U.S.C. 5365(b)(1)(B)(iv)), certain foreign banking
organizations subject to section 165 of the Dodd-Frank Act to form
U.S. intermediate holding companies. Accordingly, the parent
foreign-based organization of a U.S. IHC is treated as a BHC for
purposes of the BHC Act and section 165 of the Dodd-Frank Act.
Because Section 5(c) of the BHC Act authorizes the Board to require
reports from subsidiaries of BHCs, section 5(c) provides additional
authority to require U.S. IHCs to report the information contained
in the FR Y-9 series of reports.
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With respect to the FR Y-9C report, Schedule HI's item 7(g) ``FDIC
deposit insurance assessments,'' Schedule HC-P's item 7(a)
``Representation and warranty reserves for 1-4 family residential
mortgage loans sold to U.S. government agencies and government
sponsored agencies,'' and Schedule HC-P's item 7(b) ``Representation
and warranty reserves for 1-4 family residential mortgage loans sold to
other parties'' are considered confidential commercial and financial
information. Such treatment may be appropriate under exemption 4 of the
Freedom of Information Act (``FOIA''), (5 U.S.C. 552(b)(4)), because
these data items reflect commercial and financial information that is
both customarily and actually treated as private by the submitter, and
which the Board has previously assured submitters will be treated as
confidential. It also appears that disclosing these data items may
reveal confidential examination and supervisory information, and in
such instances, this information may also be withheld pursuant to
exemption 8 of the FOIA, (5 U.S.C. 552(b)(8)), which protects
information related to the supervision or examination of a regulated
financial institution.
In addition, for both the FR Y-9C report and the FR Y-9SP report,
Schedule HC's memorandum item 2.b., the name and email address of the
external auditing firm's engagement partner, is considered confidential
commercial information and protected by exemption 4 of the FOIA, (5
U.S.C. 552(b)(4)), if the identity of the engagement partner is treated
as private information by HCs. The Board has assured respondents that
this information will be treated as confidential since the collection
of this data item was proposed in 2004.
Aside from the data items described above, the remaining data items
on the FR Y-9C report and the FR Y-9SP report are generally not
accorded confidential treatment. The data items collected on FR Y-9LP,
FR Y-9ES, and FR Y-9CS\12\ reports, are also generally not accorded
confidential treatment. As provided in the Board's Rules Regarding
Availability of Information (12 CFR part 261), however, a respondent
may request confidential treatment for any data items the respondent
believes should be withheld pursuant to a FOIA exemption. The Board
will review any such request to determine if confidential treatment is
appropriate, and will inform the respondent if the request for
confidential treatment has been denied.
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\12\ The FR Y-9CS is a supplemental report that may be utilized
by the Board to collect additional information that is needed in an
expedited manner from HCs. The information collected on this
supplemental report is subject to change as needed. Generally, the
FR Y-9CS report is treated as public. However, where appropriate,
data items on the FR Y-9CS report may be withheld under exemptions 4
and/or 8 of the Freedom of Information Act, (5 U.S.C. 552(b)(4) and
(8)).
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To the extent the instructions to the FR Y-9C, FR Y-9LP, FR Y-9SP,
and FR Y-9ES reports each respectively direct the financial institution
to retain the workpapers and related materials used in preparation of
each report, such material would only be obtained by the Board as part
of the examination or supervision of the financial institution.
Accordingly, such information may be considered confidential pursuant
to exemption 8 of the FOIA. (5 U.S.C. 552(b)(8)). In addition, the
workpapers and related materials may also be protected by exemption 4
of the FOIA, to the extent such financial information is treated as
confidential by the respondent. (5 U.S.C. 552(b)(4)).
Consultation outside the agency: The Board consulted with the FDIC
and the Office of the Comptroller of the Currency in regard to these
proposed revisions.
Board of Governors of the Federal Reserve System, September 23,
2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-20928 Filed 9-25-19; 8:45 am]
BILLING CODE 6210-01-P
