Single-Counterparty Credit Limits for Bank Holding Companies and Foreign Banking Organizations, 64031-64035 [2019-24966]
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Federal Register / Vol. 84, No. 224 / Wednesday, November 20, 2019 / Proposed Rules
A 30-day comment period is provided
to allow interested persons to respond
to this proposal. All written comments
timely received will be considered
before a final determination is made on
this matter.
List of Subjects in 7 CFR Part 986
Marketing agreements, Nuts, Pecans,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 986 is proposed to
be amended as follows:
PART 986—PECANS GROWN IN THE
STATES OF ALABAMA, ARKANSAS,
ARIZONA, CALIFORNIA, FLORIDA,
GEORGIA, KANSAS, LOUISIANA,
MISSOURI, MISSISSIPPI, NORTH
CAROLINA, NEW MEXICO,
OKLAHOMA, SOUTH CAROLINA, AND
TEXAS
1. The authority citation for 7 CFR
part 986 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
■
2. Revise § 986.162 to read as follows:
§ 986.162
Inter-handler transfers.
(a) Inter-handler transfers of inshell
pecans, pursuant to § 986.62, shall be
reported to the Council on APC Form 4.
Handlers shall file reports by the tenth
day of the month following the first
transfer between two handlers. Should
the tenth day of the month fall on a
weekend or holiday, reports are due by
the first business day following the
tenth day of the month. This report
must be renewed each fiscal year. The
report shall contain the following
information:
(1) The fiscal year covered by the
report;
(2) The names and signatures for both
the transferring and receiving handler;
and
(3) Handler assuming the reporting
and assessment obligations on the
pecans transferred.
(b) [Reserved].
■ 3. Amend § 986.175 by revising
paragraph (a) introductory text to read
as follows:
§ 986.175
Handler inventory.
(a) Handlers shall submit to the
Council a year-end inventory report
following August 31 each fiscal year.
Handlers shall file such reports by
September 10. Should September 10 fall
on a weekend, reports are due by the
first business day following September
10. Such reports shall be reported to the
Council on APC Form 5 and include:
*
*
*
*
*
■ 4. Amend § 986.177 by:
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a. Revising paragraph (a) introductory
text, and paragraphs (a)(3) and (4);
■ b. Adding paragraphs (a)(6) through
(a)(10);
■ c. Revising paragraph (b) introductory
text; and
■ d. Adding paragraphs (b)(6) through
(b)(9).
The additions and revisions read as
follows:
■
§ 986.177 Reports of pecans received by
handlers.
(a) Summary report. Handlers shall
submit to the Council, by the tenth day
of the month, a summary report of
inshell domestic pecans received, and
all shipments, inventory, and
committed inventory for pecans
following the month of activity. Should
the tenth day of the month fall on a
weekend or holiday, reports are due by
the first business day following the
tenth day of the month. The report shall
be submitted to the Council on APC
Form 1 and contain the following
information:
*
*
*
*
*
(3) The total weight and type of
inshell pecans received during the
reporting period;
(4) The total weight and type of
inshell pecans received year to date;
and,
*
*
*
*
*
(6) The weight of all shipments of
pecans, inshell and shelled, and interhandler transfers shipped and received
during the reporting period;
(7) The weight of all shipments of
pecans, inshell and shelled, and interhandler transfers shipped and received
in the previous month and year to date;
(8) Total inventory held by handler;
(9) All the inventory committed
(pecans not shipped, but sold or
otherwise obligated) whether for
domestic sale or export; and,
(10) The weight of all shelled or
inshell pecans under contract for
purchase from other handlers.
(b) Pecans purchased outside the
United States and inshell pecans
exported to Mexico for shelling and
returned to the United States as shelled
meats. Handlers shall submit to the
Council, by the tenth day of the month
following the month of activity, a
summary report of shelled and inshell
pecans imported during the preceding
month. Should the tenth day of the
month fall on a weekend or holiday,
reports are due by the first business day
following the tenth day of the month.
The report shall be submitted to the
Council on APC Form 2 and contain the
following information:
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*
*
*
*
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64031
(6) The weight of inshell pecans
exported to Mexico for shelling;
(7) The date shelled pecans returned
to the United States after shelling in
Mexico;
(8) The weight of shelled pecans
returned to the United States after
shelling in Mexico; and
(9) The total weight of inshell pecans
exported to Mexico for shelling, and
shelled pecans returned from Mexico,
year to date.
■ 5. Amend § 986.178 by revising
paragraph (a) to read as follows:
§ 986.178
Other reports.
(a) Exports by country of destination.
Handlers shall submit to the Council, by
the tenth day of the month following the
month of shipment, a report of exports.
Should the tenth day of the month fall
on a weekend or holiday, reports are
due by the first business day following
the tenth day of the month. The report
shall be reported to the Council on APC
Form 3 and contain the following
information:
(1) The name and address of the
handler;
(2) The month covered by the report;
(3) The total weight of pecans shipped
for export, whether inshell, shelled, or
substandard during the reporting
period;
(4) The total weight of pecans shipped
for export, whether inshell, shelled, or
substandard during the previous period
and year to date; and,
(5) The destination(s) of such exports.
*
*
*
*
*
Dated: November 14, 2019.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2019–25083 Filed 11–19–19; 8:45 am]
BILLING CODE 3410–02–P
FEDERAL RESERVE SYSTEM
12 CFR Part 252
[Regulation YY; Docket No. R–1534]
RIN 7100–AE 38
Single-Counterparty Credit Limits for
Bank Holding Companies and Foreign
Banking Organizations
Board of Governors of the
Federal Reserve System (Board).
ACTION: Notice of proposed rule to
modify compliance dates.
AGENCY:
The Board is proposing to
amend the compliance dates for SingleCounterparty Credit Limits for Bank
Holding Companies and Foreign
Banking Organizations, which it
SUMMARY:
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Federal Register / Vol. 84, No. 224 / Wednesday, November 20, 2019 / Proposed Rules
finalized in a rule (final SCCL rule),
published in the Federal Register on
August 6, 2018. The Board is requesting
comment on a proposed amendment
that would modify these initial
compliance dates to July 1, 2021, and
January 1, 2022, respectively, regarding
the single-counterparty credit limits
applicable to a foreign banking
organization’s combined U.S. operations
only. The Board is not proposing at this
time any amendment that would modify
the initial compliance dates in the final
rule for, or otherwise amend the
application of, single-counterparty
credit limits applicable to any U.S.
intermediate holding company of a
foreign banking organization.
DATES: Comments must be received on
or before December 20, 2019.
ADDRESSES: You may submit comments,
identified by Docket No. R–1534 and
RIN 7100–AE 38, 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 docket
number and RIN 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/generalinfo/
foia/ProposedRegs.cfm 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 FURTHER INFORMATION CONTACT:
Constance M. Horsley, Deputy Associate
Director, (202) 452–5239; Juan C.
Climent, Manager, (202) 872–7526;
Lesley Chao, Lead Financial Institution
Policy Analyst, (202) 974–7063; or
Donald Gabbai, Lead Financial
Institution Policy Analyst, (202) 452–
3358, Division of Supervision and
Regulation; or Laurie Schaffer, Associate
General Counsel, (202) 452–2272;
Benjamin W. McDonough, Assistant
General Counsel, (202) 452–2036; Chris
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Callanan, Counsel, (202) 452–3594;
Lucy Chang, Counsel, (202) 475–6331;
or Jeffery Zhang, Attorney, (202) 736–
1968, Legal Division, Board of
Governors of the Federal Reserve
System, 20th Street and Constitution
Avenue NW, Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
I. Discussion
On August 6, 2018,at 83 FR 38460, the
Board published in the Federal Register
a final rule to establish singlecounterparty credit limits (SCCL) for
bank holding companies and foreign
banking organizations (FBOs) with total
consolidated assets of at least $250
billion, pursuant to section 165(e) of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act (final SCCL
rule).1 The rule was amended as part of
the Board’s recent rule establishing riskbased categories for determining
prudential standards for large U.S.
banking organizations and foreign
banking organizations.2 For FBOs, the
amended final rule establishes separate
SCCL applicable to (1) the combined
U.S. operations of an FBO that is subject
to Category II or III standards or that has
total global consolidated assets of $250
billion or more, and (2) any U.S.
intermediate holding company (IHC)
that is subject to Category II or III
standards. With respect to the SCCL
applicable to the combined U.S.
operations of an FBO, the final SCCL
rule establishes different compliance
dates based on whether the FBO has the
characteristics of a global systemically
important banking organization (GSIB).
An FBO that has the characteristics of
a GSIB must comply with these SCCL
beginning on January 1, 2020, while an
FBO that does not have the
characteristics of a GSIB must comply
beginning on July 1, 2020, unless that
time is extended by the Board in
writing.3
The final SCCL rule allows an FBO to
comply with the SCCL applicable to its
combined U.S. operations by certifying
to the Board that it meets, on a
consolidated basis, SCCL standards
established by its home country
supervisor that are consistent with the
large exposures framework published by
the Basel Committee on Banking
Supervision in 2014 (BCBS Large
Exposure Standard). The BCBS Large
Exposure Standard is consistent with
the Board’s final rule.4
Since finalization of the final SCCL
rule, many foreign banks and their trade
1 See
12 U.S.C. 5365(e).
FR 59032 (Nov. 1, 2019).
3 12 CFR 252.170(c).
4 12 CFR 252.172(d).
2 84
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associations have noted that, although
efforts are underway in many
jurisdictions to implement the BCBS
Large Exposure Standard, the
framework may not be fully
implemented in the home countries of
FBOs before the initial compliance dates
of the final rule. Foreign banks
indicated that it would be significantly
burdensome to build systems to permit
their combined U.S. operations to report
compliance with the Board’s final SCCL
rule solely for use during the
implementation gap period, since those
FBOs will eventually be subject instead
to a home-country large exposures
framework consistent with the BCBS
Large Exposure Standard on a
consolidated basis. Foreign banks have
requested that the Board consider either
(1) allowing an FBO subject to the
Board’s final rule to comply through
certification if its home country
supervisor is ‘‘working towards’’ a
framework consistent with the BCBS
Large Exposure Standard, or (2) granting
temporary relief to an FBO whose home
country jurisdiction is working towards
a framework consistent with the BCBS
Large Exposure Standard.
The home countries of the FBOs
whose combined U.S. operations are
subject to the Board’s SCCL rule are
China, Switzerland, Canada, Japan, and
member states of the European Union.
Those countries generally have made
progress over the past year on
implementing the BCBS Large Exposure
Standard. At this time, China and
Switzerland have final frameworks that
have become effective, and Canada
finalized an SCCL framework that will
become effective on November 1, 2019.5
The European Union recently finalized
an SCCL framework that will become
effective on June 28, 2021.6 Japan does
not yet have a final effective framework.
Staff expects that the United Kingdom
5 See FINMA Circular 2013/7 ‘‘Intragroup
exposure—banks’’ and Circular 2019/1 ‘‘Risk
diversification—banks’’ (effective as of Jan. 1, 2019);
IMF, Peoples Republic of China: Detailed
Assessment of Observance of Basel Core Principles
for Effective Banking Supervision, IMF Country
Report No. 17/403 (Dec. 2017); OSFI Guideline B–
2, Large Exposure Limits (effective as of Nov. 1,
2019). Although Canada’s framework is effective as
of November 1, 2019, implementation by Canadian
banks will begin in Q1 2020.
6 See Regulation (EU) 2019/876 of the European
Parliament and of the Council of 20 May 2019
amending Regulation (EU) No 575/2013 as regards
the leverage ratio, the net stable funding ratio,
requirements for own funds and eligible liabilities,
counterparty credit risk, market risk, exposures to
central counterparties, exposures to collective
investment undertakings, large exposures, reporting
and disclosure requirements, and Regulation (EU)
No 648/2012.
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Federal Register / Vol. 84, No. 224 / Wednesday, November 20, 2019 / Proposed Rules
will follow the European Union’s final
framework.7
In adopting the final rule, the Board
agreed to defer to home country
compliance with the BCBS Large
Exposure Standard to prevent
application of two nearly redundant
SCCL frameworks to the combined U.S.
operations of FBOs.8
For these reasons, the Board proposes
to amend the final SCCL rule to extend
the initial compliance dates for the
combined U.S. operations of FBOs by 18
months. The Board believes this
timeframe would provide a reasonable
period for firms to come into
compliance with the final SCCL rule,
either through direct compliance with
the rule or certification. The proposed
initial compliance dates applicable to
the combined U.S. operations of an FBO
would be July 1, 2021, for an FBO that
has the characteristics of a GSIB and
January 1, 2022, for any other FBO. The
Board does not propose to amend the
final SCCL rule to extend the initial
compliance dates under the final SCCL
rule with respect to the SCCL applicable
to any U.S. IHC of an FBO. Any U.S.
IHC of an FBO is expected to comply
with the final SCCL rule on January 1,
2020, or July 1, 2020, as applicable,
unless that time is separately extended
by the Board in writing.
The Board invites comment on all
aspects of this proposal.
Question 1: Are the proposed
extensions of the compliance dates for
an FBO to meet the SCCL applicable to
its combined U.S. operations
appropriate? Why or why not?
Question 2: Should the Board
consider any shorter or longer extension
of the compliance dates for an FBO to
meet the SCCL applicable to its
combined U.S. operations? If so, what
time period should the Board consider
and why?
Question 3: Under what
circumstances, if any, should the Board
consider providing additional
extensions of the compliance dates
related to specific events or
circumstances that would apply to a
subset of firms? Should the Board
consider any alternate arrangements to
address such specific events or
circumstances, and, if so, why?
7 Correspondence from Stephanie Webster,
General Counsel, Institute of International Bankers,
to Lucy Chang, Counsel, Board of Governors of the
Federal Reserve System (Apr. 1, 2019);
Correspondence from Briget Polichene, Chief
Executive Officer, Institute of International Bankers,
to Lucy Chang, Counsel, Board of Governors of the
Federal Reserve System (Oct. 9, 2019).
8 83 FR at 38487.
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II. Administrative Law Matters
A. Paperwork Reduction Act
Certain provisions of the proposed
rule contain ‘‘collections of
information’’ within the meaning of the
Paperwork Reduction Act of 1995 (PRA)
(44 U.S.C. 3501–3521). The Board may
not conduct or sponsor, and a
respondent is not required to respond
to, an information collection unless it
displays a currently valid Office of
Management and Budget (OMB) control
number. The Board reviewed the
proposed rule under the authority
delegated to the Board by OMB.
The proposed rule contains revisions
to the compliance date for the reporting
and recordkeeping requirements subject
to the PRA. To implement these
requirements, the Board proposes to
revise the Single-Counterparty Credit
Limits (FR 2590; OMB No. 7100–NEW).
Comments are invited on:
(a) Whether the proposed collections
of information are necessary for the
proper performance of the Board’s
functions, including whether the
information has practical utility;
(b) The accuracy of the estimates of
the burden of the proposed information
collections, 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
the information collections 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.
Proposed Revision, With Extension, of
the Following Information Collection
Report title: Single-Counterparty
Credit Limits.
Agency form number: FR 2590.
OMB control number: 7100–NEW.
Frequency: Quarterly, annual, and
event-generated.
Affected Public: Businesses or other
for-profit.
Respondents: U.S. global systemically
important bank holding companies (G–
SIBs) and other U.S. bank holding
companies (BHCs) or savings and loan
holding companies (SLHCs) that are
subject to Category I, II, or III standards;
foreign banking organizations (FBOs)
that are subject to Category II or III
standards or that have $250 billion or
more in total global consolidated assets;
and U.S. intermediate holding
companies (IHCs) that are subject to
Category II or III standards.
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64033
Estimated number of respondents: 75.
Estimated average hours per response:
Reporting
One-time implementation: 1,273
hours.
Ongoing: 254 hours.
Requests for temporary relief: 10
hours.
Recordkeeping
Recordkeeping: 0.25 hours.
Estimated annual burden hours:
Reporting
One-time implementation: 95,475
hours.
Ongoing: 76,200 hours.
Requests for temporary relief: 30
hours.
Recordkeeping
Recordkeeping: 75 hours.
General description of report: The FR
2590 is being implemented in
connection with the Board’s singlecounterparty credit limits rule (SCCL
rule),9 which has been codified in the
Board’s Regulation YY—Enhanced
Prudential Standards (12 CFR part
252).10
The information collected by the
Single-Counterparty Credit Limits
reporting form (FR 2590 report) will
allow the Board to monitor a covered
company’s or a covered foreign entity’s
compliance with the SCCL rule. As
amended by the Board’s final tailoring
rule, a covered company is any U.S.
bank holding company (BHC) or savings
and loan holding company (SLHC) that
is subject to Category I, II, or III
standards.11 A covered foreign entity is
any foreign banking organization (FBO)
that is subject to Categories II or III
standards or that has total global
consolidated assets that equal or exceed
$250 billion and any U.S. intermediate
holding company (IHC) that is subject to
Category II or III standards.12 In addition
to the reporting form, the FR 2590
information collection incorporates
notice requirements pertaining to
requests that may be made by a covered
company or covered foreign entity to
request temporary relief from specific
requirements of the SCCL rule. A
respondent must retain one exact copy
of each completed FR 2590 in electronic
form, and these records must be kept for
at least three years.
Legal authorization and
confidentiality: The FR 2590 is
authorized pursuant to section 5(c) of
9 83
FR 38460 (Aug. 6, 2018).
12 CFR 252, subparts H and Q.
11 12 CFR 252.70, 252.170; see also 84 FR 59032
(Nov. 1, 2019).
12 Id.
10 See
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Federal Register / Vol. 84, No. 224 / Wednesday, November 20, 2019 / Proposed Rules
the Bank Holding Company Act of 1956
(BHC Act) (12 U.S.C. 1844(c)) for BHCs
and section 10(b) of the Home Owners’
Loan Act (12 U.S.C. 1467a(b)). With
respect to FBOs and their subsidiary
IHCs, the FR 2590 is authorized
pursuant to section 5(c) of the BHC Act,
in conjunction with section 8 of the
International Banking Act of 1978 (12
U.S.C. 3106). The FR 2590 is mandatory.
The data collected on the FR 2590
form will be kept confidential under
exemption 4 of the Freedom of
Information Act (FOIA), which protects
from disclosure trade secrets and
commercial or financial information (5
U.S.C. 552(b)(4)), and exemption 8 of
FOIA, which protects from disclosure
information related to the supervision or
examination of a regulated financial
institution (5 U.S.C. 552(b)(8)).
Regarding notices associated with
requests for temporary relief from
specific requirements of the SCCL rule,
a firm may request confidential
treatment under the Board’s rules
regarding confidential treatment of
information at 12 CFR 261.15. The
Board will consider whether such
information may be kept confidential in
accordance with exemption 4 of FOIA (5
U.S.C. 552(b)(4)) or any other applicable
FOIA exemption.
Current Actions: The final SCCL rule
had an effective date of October 5, 2018,
and an initial compliance date of
January 1, 2020, for a foreign banking
organization that has the characteristics
of a global systemically important
banking organization, and July 1, 2020,
for any other foreign banking
organization subject to the rule, unless
that time is extended by the Board in
writing. The Board proposes to modify
these initial compliance dates to July 1,
2021, and January 1, 2022, respectively,
regarding the SCCL applicable to such a
foreign banking organization’s
combined U.S. operations only. The
Board is not proposing any amendment
at this time that would modify the
initial compliance dates in the final rule
for, or otherwise amend the application
of, single-counterparty credit limits
applicable to any U.S. intermediate
holding company of a foreign banking
organization subject to the rule. There
are no proposed changes to the
reporting or recordkeeping requirements
for such entities, and the burden hours
would remain the same.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA),
5 U.S.C. 601 et seq., generally requires
an agency, in connection with a
proposed rule, to prepare and make
available for public comment an initial
regulatory flexibility analysis that
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describes the impact of a proposed rule
on small entities. However, a regulatory
flexibility analysis is not required if the
agency certifies that the rule will not
have a significant economic impact on
a substantial number of small entities.
The Small Business Administration
(SBA) has defined ‘‘small entities’’ to
include banking organizations with total
assets of less than or equal to $600
million.13 The Board has considered the
potential impact of the proposal on
small entities in accordance with the
RFA. The Board believes that the
proposal will not have a significant
economic impact on a substantial
number of small entities.
As discussed in the SUPPLEMENTARY
INFORMATION, the final SCCL rule
generally applies to U.S. bank holding
companies subject to Category I, II, or III
standards, and foreign banking
organizations that are subject to
Category II or III standards or that have
total global consolidated assets of at
least $250 billion. Companies that are
subject to the final SCCL rule have
consolidated assets that substantially
exceed the $600 million asset threshold
at which a banking organization is
considered a ‘‘small entity’’ under SBA
regulations. Because the final SCCL rule
does not apply to any small entities for
purposes of the RFA, the proposed
amendments to the rule to extend the
initial compliance dates applicable to
FBOs subject to SCCL with respect to
their combined U.S. operations would
not affect any small entity for purposes
of the RFA. The Board’s proposed rule
would not impose any new
recordkeeping, reporting, or compliance
requirements. The Board does not
believe that the proposal duplicates,
overlaps, or conflicts with any other
Federal rules. The Board does not
believe that there are any significant
alternatives to the proposal which
accomplish its stated objectives. In light
of the foregoing, the Board does not
believe that proposal, if adopted in final
form, would have a significant
economic impact on a substantial
number of small entities. Nonetheless,
the Board seeks comment on whether
the proposal would impose undue
burdens on, or have unintended
consequences for, small banking
organizations and whether there are
13 See 13 CFR 121.201. Effective August 19, 2019,
the Small Business Administration revised the size
standards for banking organizations to $600 million
in assets from $550 million in assets. See 84 FR
34261 (July 18, 2019). Consistent with the General
Principles of Affiliation in 13 CFR 121.103, the
Board counts the assets of all domestic and foreign
affiliates when determining if the Board should
classify a Board-supervised institution as a small
entity.
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ways such potential burdens or
consequences could be minimized in a
manner consistent with the purpose of
the proposal.
C. Solicitation of Comments on the Use
of Plain Language
Section 722 of the Gramm–Leach–
Bliley Act requires the Federal banking
agencies to use plain language in all
proposed and final rules published after
January 1, 2000. The Board has sought
to present the proposed amendments to
the rule in a simple and straightforward
manner and invites comment on the use
of plain language.
List of Subjects in 12 CFR Part 252
Administrative practice and
procedure, Banks, banking, Federal
Reserve System, Holding companies,
Reporting and recordkeeping
requirements, Securities.
Authority and Issuance For the reasons
stated in the preamble, the Board of
Governors of the Federal Reserve System
proposes to amend 12 CFR part 252 as
follows:
PART 252—ENHANCED PRUDENTIAL
STANDARDS (REGULATION YY).
§ 252.170 Applicability and general
provisions.
1. The authority citation for part 252
continues to read as follows:
■
Authority: 12 U.S.C. 321–338a, 481–486,
1818, 1828, 1831n, 1831o, 1831p–l, 1831w,
1835, 1844(b), 1844(c), 3101 et seq., 3101
note, 3904, 3906–3909, 4808, 5361, 5362,
5365, 5366, 5367, 5368, 5371.
2. Amend § 252.170 by revising
paragraphs (c)(1)(i) and (ii) to read as
follows:
*
*
*
*
*
(c) * * * (1) * * * (i) A foreign
banking organization that is a covered
foreign entity as of October 5, 2018,
must comply with the requirements of
this subpart, including but not limited
to § 252.172, beginning on January 1,
2022, unless that time is extended by
the Board in writing.
(ii) Notwithstanding paragraph
(c)(1)(i) of this section, a foreign banking
organization that is a major foreign
banking organization as of October 5,
2018, must comply with the
requirements of this subpart, including
but not limited to § 252.172, beginning
on July 1, 2021, unless that time is
extended by the Board in writing.
*
*
*
*
*
■
E:\FR\FM\20NOP1.SGM
20NOP1
Federal Register / Vol. 84, No. 224 / Wednesday, November 20, 2019 / Proposed Rules
By order of the Board of Governors of the
Federal Reserve System, November 8, 2019.
Ann Misback,
Secretary of the Board.
[FR Doc. 2019–24966 Filed 11–19–19; 8:45 am]
BILLING CODE 6210–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[Docket No. EPA–R09–OAR–2019–0564;
FRL–10002–24–Region 9]
Air Plan Approval; California; Mojave
Desert Air Quality Management District
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA) is proposing to approve
revisions to the Mojave Desert Air
Quality Management District
(MDAQMD) portion of the California
State Implementation Plan (SIP). These
revisions concern emissions of volatile
organic compounds (VOCs) from
organic liquid and gasoline transfer and
storage operations. We are proposing to
approve local rules to regulate these
emission sources under the Clean Air
Act (CAA or the Act). We are taking
SUMMARY:
comments on this proposal and plan to
follow with a final action.
DATES: Any comments must arrive by
December 20, 2019.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R09–
OAR–2019–0564 at https://
www.regulations.gov. For comments
submitted at Regulations.gov, follow the
online instructions for submitting
comments. Once submitted, comments
cannot be edited or removed from
Regulations.gov. For either manner of
submission, the EPA may publish any
comment received to its public docket.
Do not submit electronically any
information you consider to be
Confidential Business Information (CBI)
or other information whose disclosure is
restricted by statute. Multimedia
submissions (audio, video, etc.) must be
accompanied by a written comment.
The written comment is considered the
official comment and should include
discussion of all points you wish to
make. The EPA will generally not
consider comments or comment
contents located outside of the primary
submission (i.e. on the web, cloud, or
other file sharing system). For
additional submission methods, please
contact the person identified in the FOR
FURTHER INFORMATION CONTACT section.
For the full EPA public comment policy,
information about CBI or multimedia
64035
submissions, and general guidance on
making effective comments, please visit
https://www.epa.gov/dockets/
commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT:
Rebecca Newhouse, EPA Region IX, 75
Hawthorne St., San Francisco, CA
94105, (415) 972–3004,
newhouse.rebecca@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document, ‘‘we,’’ ‘‘us’’
and ‘‘our’’ refer to the EPA.
Table of Contents
I. The State’s Submittal
A. What rules did the State submit?
B. Are there other versions of these rules?
C. What is the purpose of the submitted
rule revisions?
II. The EPA’s Evaluation and Action
A. How is the EPA evaluating the rules?
B. Do the rules meet the evaluation
criteria?
C. EPA Recommendations To Further
Improve the Rules
D. Public Comment and Proposed Action
III. Incorporation by Reference
IV. Statutory and Executive Order Reviews
I. The State’s Submittal
A. What rules did the State submit?
Table 1 lists the rules addressed by
this proposal with the dates that they
were adopted by the local air agency
and submitted by the California Air
Resources Board (CARB).
TABLE 1—SUBMITTED RULES
Local agency
Rule No.
Rule title
MDAQMD .........
MDAQMD .........
MDAQMD .........
461 .................
462 .................
463 .................
Gasoline Transfer and Dispensing ...............................................................
Organic Liquid Loading ................................................................................
Storage of Organic Liquids ..........................................................................
On November 23, 2018, the submittal
of Rules 461, 462, and 463 for
MDAQMD was deemed by operation of
law to meet the completeness criteria in
40 CFR part 51 Appendix V, which
must be met before formal EPA review.
B. Are there other versions of these
rules?
The MDAQMD regulates portions of
San Bernardino and Riverside Counties.
On July 1, 1994, a portion of Riverside
County left the South Coast Air Quality
Management District (SCAQMD) and
joined the MDAQMD. The EPAapproved SIP for this portion of
Riverside County remained the same
when the area changed districts. As a
result, the Riverside County portion of
the MDAQMD SIP retained the
SCAQMD rules in place at that time.
We approved earlier versions of
MDAQMD Rules 461 and 462 into the
VerDate Sep<11>2014
16:49 Nov 19, 2019
Jkt 250001
Amended
SIP on May 3, 1995 (60 FR 21702).
These rules applied in both the San
Bernardino and Riverside County
portions of the MDAQMD and replaced
the existing versions of Rules 461 and
462 in place in the District at that time.
On May 3, 1995 (60 FR 21702), we
also approved a version of Rule 463
submitted by the San Bernardino
County Air Pollution Control District on
November 2, 1992. This rule was only
approved to apply in the San
Bernardino County portion of the
District. In the Riverside County portion
of the MDAQMD, the EPA approved the
June 1, 1984 version of SCAQMD Rule
463 on January 15, 1987 (52 FR 1627).
For a more complete discussion of the
SIP history of these rules, see the
technical support documents (TSDs).
The MDAQMD adopted revisions to
all three rules on January 22, 2018, and
CARB submitted them to us on May 23,
PO 00000
Frm 00008
Fmt 4702
Sfmt 4702
01/22/2018
01/22/2018
01/22/2018
Submitted
05/23/2018
05/23/2018
05/23/2018
2018. In its submission, the District
requested that in the San Bernardino
County portion of the District the
newly-adopted rules replace the
versions of Rules 461, 462, and 463,
approved in 1995, and that in the
Riverside County portion of the District,
the rules replace all versions of the rules
that are applicable in Riverside County.
C. What is the purpose of the submitted
rule revisions?
Emissions of VOCs contribute to the
production of ground-level ozone, smog
and particulate matter, which harm
human health and the environment.
Section 110(a) of the CAA requires
states to submit regulations that control
VOC emissions. SIP-approved Rules
461, 462, and 463 limit VOC emissions
from organic liquid storage tanks and
during transfers at bulk terminals, bulk
gasoline plants, and gasoline dispensing
E:\FR\FM\20NOP1.SGM
20NOP1
]]>Agencies
[Federal Register Volume 84, Number 224 (Wednesday, November 20, 2019)]
[Proposed Rules]
[Pages 64031-64035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24966]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 252
[Regulation YY; Docket No. R-1534]
RIN 7100-AE 38
Single-Counterparty Credit Limits for Bank Holding Companies and
Foreign Banking Organizations
AGENCY: Board of Governors of the Federal Reserve System (Board).
ACTION: Notice of proposed rule to modify compliance dates.
-----------------------------------------------------------------------
SUMMARY: The Board is proposing to amend the compliance dates for
Single-Counterparty Credit Limits for Bank Holding Companies and
Foreign Banking Organizations, which it
[[Page 64032]]
finalized in a rule (final SCCL rule), published in the Federal
Register on August 6, 2018. The Board is requesting comment on a
proposed amendment that would modify these initial compliance dates to
July 1, 2021, and January 1, 2022, respectively, regarding the single-
counterparty credit limits applicable to a foreign banking
organization's combined U.S. operations only. The Board is not
proposing at this time any amendment that would modify the initial
compliance dates in the final rule for, or otherwise amend the
application of, single-counterparty credit limits applicable to any
U.S. intermediate holding company of a foreign banking organization.
DATES: Comments must be received on or before December 20, 2019.
ADDRESSES: You may submit comments, identified by Docket No. R-1534 and
RIN 7100-AE 38, 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 docket
number and RIN 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/generalinfo/foia/ProposedRegs.cfm 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 FURTHER INFORMATION CONTACT: Constance M. Horsley, Deputy Associate
Director, (202) 452-5239; Juan C. Climent, Manager, (202) 872-7526;
Lesley Chao, Lead Financial Institution Policy Analyst, (202) 974-7063;
or Donald Gabbai, Lead Financial Institution Policy Analyst, (202) 452-
3358, Division of Supervision and Regulation; or Laurie Schaffer,
Associate General Counsel, (202) 452-2272; Benjamin W. McDonough,
Assistant General Counsel, (202) 452-2036; Chris Callanan, Counsel,
(202) 452-3594; Lucy Chang, Counsel, (202) 475-6331; or Jeffery Zhang,
Attorney, (202) 736-1968, Legal Division, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
I. Discussion
On August 6, 2018,at 83 FR 38460, the Board published in the
Federal Register a final rule to establish single-counterparty credit
limits (SCCL) for bank holding companies and foreign banking
organizations (FBOs) with total consolidated assets of at least $250
billion, pursuant to section 165(e) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (final SCCL rule).\1\ The rule was
amended as part of the Board's recent rule establishing risk-based
categories for determining prudential standards for large U.S. banking
organizations and foreign banking organizations.\2\ For FBOs, the
amended final rule establishes separate SCCL applicable to (1) the
combined U.S. operations of an FBO that is subject to Category II or
III standards or that has total global consolidated assets of $250
billion or more, and (2) any U.S. intermediate holding company (IHC)
that is subject to Category II or III standards. With respect to the
SCCL applicable to the combined U.S. operations of an FBO, the final
SCCL rule establishes different compliance dates based on whether the
FBO has the characteristics of a global systemically important banking
organization (GSIB). An FBO that has the characteristics of a GSIB must
comply with these SCCL beginning on January 1, 2020, while an FBO that
does not have the characteristics of a GSIB must comply beginning on
July 1, 2020, unless that time is extended by the Board in writing.\3\
---------------------------------------------------------------------------
\1\ See 12 U.S.C. 5365(e).
\2\ 84 FR 59032 (Nov. 1, 2019).
\3\ 12 CFR 252.170(c).
---------------------------------------------------------------------------
The final SCCL rule allows an FBO to comply with the SCCL
applicable to its combined U.S. operations by certifying to the Board
that it meets, on a consolidated basis, SCCL standards established by
its home country supervisor that are consistent with the large
exposures framework published by the Basel Committee on Banking
Supervision in 2014 (BCBS Large Exposure Standard). The BCBS Large
Exposure Standard is consistent with the Board's final rule.\4\
---------------------------------------------------------------------------
\4\ 12 CFR 252.172(d).
---------------------------------------------------------------------------
Since finalization of the final SCCL rule, many foreign banks and
their trade associations have noted that, although efforts are underway
in many jurisdictions to implement the BCBS Large Exposure Standard,
the framework may not be fully implemented in the home countries of
FBOs before the initial compliance dates of the final rule. Foreign
banks indicated that it would be significantly burdensome to build
systems to permit their combined U.S. operations to report compliance
with the Board's final SCCL rule solely for use during the
implementation gap period, since those FBOs will eventually be subject
instead to a home-country large exposures framework consistent with the
BCBS Large Exposure Standard on a consolidated basis. Foreign banks
have requested that the Board consider either (1) allowing an FBO
subject to the Board's final rule to comply through certification if
its home country supervisor is ``working towards'' a framework
consistent with the BCBS Large Exposure Standard, or (2) granting
temporary relief to an FBO whose home country jurisdiction is working
towards a framework consistent with the BCBS Large Exposure Standard.
The home countries of the FBOs whose combined U.S. operations are
subject to the Board's SCCL rule are China, Switzerland, Canada, Japan,
and member states of the European Union. Those countries generally have
made progress over the past year on implementing the BCBS Large
Exposure Standard. At this time, China and Switzerland have final
frameworks that have become effective, and Canada finalized an SCCL
framework that will become effective on November 1, 2019.\5\ The
European Union recently finalized an SCCL framework that will become
effective on June 28, 2021.\6\ Japan does not yet have a final
effective framework. Staff expects that the United Kingdom
[[Page 64033]]
will follow the European Union's final framework.\7\
---------------------------------------------------------------------------
\5\ See FINMA Circular 2013/7 ``Intragroup exposure--banks'' and
Circular 2019/1 ``Risk diversification--banks'' (effective as of
Jan. 1, 2019); IMF, Peoples Republic of China: Detailed Assessment
of Observance of Basel Core Principles for Effective Banking
Supervision, IMF Country Report No. 17/403 (Dec. 2017); OSFI
Guideline B-2, Large Exposure Limits (effective as of Nov. 1, 2019).
Although Canada's framework is effective as of November 1, 2019,
implementation by Canadian banks will begin in Q1 2020.
\6\ See Regulation (EU) 2019/876 of the European Parliament and
of the Council of 20 May 2019 amending Regulation (EU) No 575/2013
as regards the leverage ratio, the net stable funding ratio,
requirements for own funds and eligible liabilities, counterparty
credit risk, market risk, exposures to central counterparties,
exposures to collective investment undertakings, large exposures,
reporting and disclosure requirements, and Regulation (EU) No 648/
2012.
\7\ Correspondence from Stephanie Webster, General Counsel,
Institute of International Bankers, to Lucy Chang, Counsel, Board of
Governors of the Federal Reserve System (Apr. 1, 2019);
Correspondence from Briget Polichene, Chief Executive Officer,
Institute of International Bankers, to Lucy Chang, Counsel, Board of
Governors of the Federal Reserve System (Oct. 9, 2019).
---------------------------------------------------------------------------
In adopting the final rule, the Board agreed to defer to home
country compliance with the BCBS Large Exposure Standard to prevent
application of two nearly redundant SCCL frameworks to the combined
U.S. operations of FBOs.\8\
---------------------------------------------------------------------------
\8\ 83 FR at 38487.
---------------------------------------------------------------------------
For these reasons, the Board proposes to amend the final SCCL rule
to extend the initial compliance dates for the combined U.S. operations
of FBOs by 18 months. The Board believes this timeframe would provide a
reasonable period for firms to come into compliance with the final SCCL
rule, either through direct compliance with the rule or certification.
The proposed initial compliance dates applicable to the combined U.S.
operations of an FBO would be July 1, 2021, for an FBO that has the
characteristics of a GSIB and January 1, 2022, for any other FBO. The
Board does not propose to amend the final SCCL rule to extend the
initial compliance dates under the final SCCL rule with respect to the
SCCL applicable to any U.S. IHC of an FBO. Any U.S. IHC of an FBO is
expected to comply with the final SCCL rule on January 1, 2020, or July
1, 2020, as applicable, unless that time is separately extended by the
Board in writing.
The Board invites comment on all aspects of this proposal.
Question 1: Are the proposed extensions of the compliance dates for
an FBO to meet the SCCL applicable to its combined U.S. operations
appropriate? Why or why not?
Question 2: Should the Board consider any shorter or longer
extension of the compliance dates for an FBO to meet the SCCL
applicable to its combined U.S. operations? If so, what time period
should the Board consider and why?
Question 3: Under what circumstances, if any, should the Board
consider providing additional extensions of the compliance dates
related to specific events or circumstances that would apply to a
subset of firms? Should the Board consider any alternate arrangements
to address such specific events or circumstances, and, if so, why?
II. Administrative Law Matters
A. Paperwork Reduction Act
Certain provisions of the proposed rule contain ``collections of
information'' within the meaning of the Paperwork Reduction Act of 1995
(PRA) (44 U.S.C. 3501-3521). The Board may not conduct or sponsor, and
a respondent is not required to respond to, an information collection
unless it displays a currently valid Office of Management and Budget
(OMB) control number. The Board reviewed the proposed rule under the
authority delegated to the Board by OMB.
The proposed rule contains revisions to the compliance date for the
reporting and recordkeeping requirements subject to the PRA. To
implement these requirements, the Board proposes to revise the Single-
Counterparty Credit Limits (FR 2590; OMB No. 7100-NEW).
Comments are invited on:
(a) Whether the proposed collections of information are necessary
for the proper performance of the Board's functions, including whether
the information has practical utility;
(b) The accuracy of the estimates of the burden of the proposed
information collections, 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 the information collections 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.
Proposed Revision, With Extension, of the Following Information
Collection
Report title: Single-Counterparty Credit Limits.
Agency form number: FR 2590.
OMB control number: 7100-NEW.
Frequency: Quarterly, annual, and event-generated.
Affected Public: Businesses or other for-profit.
Respondents: U.S. global systemically important bank holding
companies (G-SIBs) and other U.S. bank holding companies (BHCs) or
savings and loan holding companies (SLHCs) that are subject to Category
I, II, or III standards; foreign banking organizations (FBOs) that are
subject to Category II or III standards or that have $250 billion or
more in total global consolidated assets; and U.S. intermediate holding
companies (IHCs) that are subject to Category II or III standards.
Estimated number of respondents: 75.
Estimated average hours per response:
Reporting
One-time implementation: 1,273 hours.
Ongoing: 254 hours.
Requests for temporary relief: 10 hours.
Recordkeeping
Recordkeeping: 0.25 hours.
Estimated annual burden hours:
Reporting
One-time implementation: 95,475 hours.
Ongoing: 76,200 hours.
Requests for temporary relief: 30 hours.
Recordkeeping
Recordkeeping: 75 hours.
General description of report: The FR 2590 is being implemented in
connection with the Board's single-counterparty credit limits rule
(SCCL rule),\9\ which has been codified in the Board's Regulation YY--
Enhanced Prudential Standards (12 CFR part 252).\10\
---------------------------------------------------------------------------
\9\ 83 FR 38460 (Aug. 6, 2018).
\10\ See 12 CFR 252, subparts H and Q.
---------------------------------------------------------------------------
The information collected by the Single-Counterparty Credit Limits
reporting form (FR 2590 report) will allow the Board to monitor a
covered company's or a covered foreign entity's compliance with the
SCCL rule. As amended by the Board's final tailoring rule, a covered
company is any U.S. bank holding company (BHC) or savings and loan
holding company (SLHC) that is subject to Category I, II, or III
standards.\11\ A covered foreign entity is any foreign banking
organization (FBO) that is subject to Categories II or III standards or
that has total global consolidated assets that equal or exceed $250
billion and any U.S. intermediate holding company (IHC) that is subject
to Category II or III standards.\12\ In addition to the reporting form,
the FR 2590 information collection incorporates notice requirements
pertaining to requests that may be made by a covered company or covered
foreign entity to request temporary relief from specific requirements
of the SCCL rule. A respondent must retain one exact copy of each
completed FR 2590 in electronic form, and these records must be kept
for at least three years.
---------------------------------------------------------------------------
\11\ 12 CFR 252.70, 252.170; see also 84 FR 59032 (Nov. 1,
2019).
\12\ Id.
---------------------------------------------------------------------------
Legal authorization and confidentiality: The FR 2590 is authorized
pursuant to section 5(c) of
[[Page 64034]]
the Bank Holding Company Act of 1956 (BHC Act) (12 U.S.C. 1844(c)) for
BHCs and section 10(b) of the Home Owners' Loan Act (12 U.S.C.
1467a(b)). With respect to FBOs and their subsidiary IHCs, the FR 2590
is authorized pursuant to section 5(c) of the BHC Act, in conjunction
with section 8 of the International Banking Act of 1978 (12 U.S.C.
3106). The FR 2590 is mandatory.
The data collected on the FR 2590 form will be kept confidential
under exemption 4 of the Freedom of Information Act (FOIA), which
protects from disclosure trade secrets and commercial or financial
information (5 U.S.C. 552(b)(4)), and exemption 8 of FOIA, which
protects from disclosure information related to the supervision or
examination of a regulated financial institution (5 U.S.C. 552(b)(8)).
Regarding notices associated with requests for temporary relief
from specific requirements of the SCCL rule, a firm may request
confidential treatment under the Board's rules regarding confidential
treatment of information at 12 CFR 261.15. The Board will consider
whether such information may be kept confidential in accordance with
exemption 4 of FOIA (5 U.S.C. 552(b)(4)) or any other applicable FOIA
exemption.
Current Actions: The final SCCL rule had an effective date of
October 5, 2018, and an initial compliance date of January 1, 2020, for
a foreign banking organization that has the characteristics of a global
systemically important banking organization, and July 1, 2020, for any
other foreign banking organization subject to the rule, unless that
time is extended by the Board in writing. The Board proposes to modify
these initial compliance dates to July 1, 2021, and January 1, 2022,
respectively, regarding the SCCL applicable to such a foreign banking
organization's combined U.S. operations only. The Board is not
proposing any amendment at this time that would modify the initial
compliance dates in the final rule for, or otherwise amend the
application of, single-counterparty credit limits applicable to any
U.S. intermediate holding company of a foreign banking organization
subject to the rule. There are no proposed changes to the reporting or
recordkeeping requirements for such entities, and the burden hours
would remain the same.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq.,
generally requires an agency, in connection with a proposed rule, to
prepare and make available for public comment an initial regulatory
flexibility analysis that describes the impact of a proposed rule on
small entities. However, a regulatory flexibility analysis is not
required if the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
The Small Business Administration (SBA) has defined ``small entities''
to include banking organizations with total assets of less than or
equal to $600 million.\13\ The Board has considered the potential
impact of the proposal on small entities in accordance with the RFA.
The Board believes that the proposal will not have a significant
economic impact on a substantial number of small entities.
---------------------------------------------------------------------------
\13\ See 13 CFR 121.201. Effective August 19, 2019, the Small
Business Administration revised the size standards for banking
organizations to $600 million in assets from $550 million in assets.
See 84 FR 34261 (July 18, 2019). Consistent with the General
Principles of Affiliation in 13 CFR 121.103, the Board counts the
assets of all domestic and foreign affiliates when determining if
the Board should classify a Board-supervised institution as a small
entity.
---------------------------------------------------------------------------
As discussed in the SUPPLEMENTARY INFORMATION, the final SCCL rule
generally applies to U.S. bank holding companies subject to Category I,
II, or III standards, and foreign banking organizations that are
subject to Category II or III standards or that have total global
consolidated assets of at least $250 billion. Companies that are
subject to the final SCCL rule have consolidated assets that
substantially exceed the $600 million asset threshold at which a
banking organization is considered a ``small entity'' under SBA
regulations. Because the final SCCL rule does not apply to any small
entities for purposes of the RFA, the proposed amendments to the rule
to extend the initial compliance dates applicable to FBOs subject to
SCCL with respect to their combined U.S. operations would not affect
any small entity for purposes of the RFA. The Board's proposed rule
would not impose any new recordkeeping, reporting, or compliance
requirements. The Board does not believe that the proposal duplicates,
overlaps, or conflicts with any other Federal rules. The Board does not
believe that there are any significant alternatives to the proposal
which accomplish its stated objectives. In light of the foregoing, the
Board does not believe that proposal, if adopted in final form, would
have a significant economic impact on a substantial number of small
entities. Nonetheless, the Board seeks comment on whether the proposal
would impose undue burdens on, or have unintended consequences for,
small banking organizations and whether there are ways such potential
burdens or consequences could be minimized in a manner consistent with
the purpose of the proposal.
C. Solicitation of Comments on the Use of Plain Language
Section 722 of the Gramm-Leach-Bliley Act requires the Federal
banking agencies to use plain language in all proposed and final rules
published after January 1, 2000. The Board has sought to present the
proposed amendments to the rule in a simple and straightforward manner
and invites comment on the use of plain language.
List of Subjects in 12 CFR Part 252
Administrative practice and procedure, Banks, banking, Federal
Reserve System, Holding companies, Reporting and recordkeeping
requirements, Securities.
Authority and Issuance For the reasons stated in the preamble,
the Board of Governors of the Federal Reserve System proposes to
amend 12 CFR part 252 as follows:
PART 252--ENHANCED PRUDENTIAL STANDARDS (REGULATION YY).
Sec. 252.170 Applicability and general provisions.
0
1. The authority citation for part 252 continues to read as follows:
Authority: 12 U.S.C. 321-338a, 481-486, 1818, 1828, 1831n,
1831o, 1831p-l, 1831w, 1835, 1844(b), 1844(c), 3101 et seq., 3101
note, 3904, 3906-3909, 4808, 5361, 5362, 5365, 5366, 5367, 5368,
5371.
0
2. Amend Sec. 252.170 by revising paragraphs (c)(1)(i) and (ii) to
read as follows:
* * * * *
(c) * * * (1) * * * (i) A foreign banking organization that is a
covered foreign entity as of October 5, 2018, must comply with the
requirements of this subpart, including but not limited to Sec.
252.172, beginning on January 1, 2022, unless that time is extended by
the Board in writing.
(ii) Notwithstanding paragraph (c)(1)(i) of this section, a foreign
banking organization that is a major foreign banking organization as of
October 5, 2018, must comply with the requirements of this subpart,
including but not limited to Sec. 252.172, beginning on July 1, 2021,
unless that time is extended by the Board in writing.
* * * * *
[[Page 64035]]
By order of the Board of Governors of the Federal Reserve
System, November 8, 2019.
Ann Misback,
Secretary of the Board.
[FR Doc. 2019-24966 Filed 11-19-19; 8:45 am]
BILLING CODE 6210-01-P
