Proposed Agency Information Collection Activities; Comment Request and Announcement of Board Approval Under Delegated Authority and Submission to OMB, 15776-15784 [2020-05723]

Agencies

• FEDERAL RESERVE SYSTEM

[Federal Register Volume 85, Number 54 (Thursday, March 19, 2020)]
[Notices]
[Pages 15776-15784]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05723]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request and Announcement of Board Approval Under Delegated Authority 
and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice, request for comment; temporary approval of information 
collection.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
invites comment on a proposal to extend for three years, with revision, 
the Capital Assessments and Stress Testing Reports (FR Y-14A/Q/M; OMB 
No. 7100-0341). The Board has also temporarily revised the FR Y-14A/Q/M 
pursuant to the authority delegated to the Board by the Office of 
Management and Budget (OMB). The temporary revisions are applicable 
only to reports reflecting the December 31, 2019, as of date.

DATES: Comments must be submitted on or before May 18, 2020.

ADDRESSES: You may submit comments, identified by FR Y-14A, FR Y-14Q, 
or FR Y-14M, 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 
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.
    On June 15, 1984, OMB also delegated to the Board authority under 
the PRA to temporarily approve a revision to a collection of 
information without providing opportunity for public comment if the 
Board determines that a change in an existing collection must be 
instituted quickly and that public participation in the approval 
process would defeat the purpose of the collection or substantially 
interfere with the Board's ability to perform its statutory obligation.
    The Board's delegated authority requires that the Board, after 
temporarily approving a collection, publish a notice soliciting public 
comment on a proposal to extend the collection for a period of up to 
three years. This notice will serve as both the temporary approval for 
revisions, as well as the proposal on which 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.

[[Page 15777]]

Temporary Approval Under OMB Delegated Authority and Proposal To Extend 
for Three Years, With Revision, the Following Information Collection:

    Report title: Capital Assessments and Stress Testing Reports.
    Agency form number: FR Y-14A/Q/M.
    OMB control number: 7100-0341.
    Frequency: Annually, quarterly, and monthly.
    Respondents: These collections of information are applicable to 
bank holding companies (BHCs), U.S. intermediate holding companies 
(IHCs), and savings and loan holding companies (SLHCs) \1\ with $100 
billion or more in total consolidated assets, as based on: (i) The 
average of the firm's total consolidated assets in the four most recent 
quarters as reported quarterly on the firm's Consolidated Financial 
Statements for Holding Companies (FR Y-9C; OMB No. 7100-0128); or (ii) 
if the firm has not filed an FR Y-9C for each of the most recent four 
quarters, then the average of the firm's total consolidated assets in 
the most recent consecutive quarters as reported quarterly on the 
firm's FR Y-9Cs. Reporting is required as of the first day of the 
quarter immediately following the quarter in which the respondent meets 
this asset threshold, unless otherwise directed by the Board.
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    \1\ SLHCs with $100 billion or more in total consolidated assets 
become members of the FR Y-14Q and FR Y-14M panels effective June 
30, 2020, and the FR Y-14A panel effective December 31, 2020. See 84 
FR 59032 (November 1, 2019).
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    Estimated number of respondents: FR Y-14A/Q: 36; FR Y-14M: 34.\2\
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    \2\ The estimated number of respondents for the FR Y-14M is 
lower than for the FR Y-14Q and FR Y-14A because, in recent years, 
certain respondents to the FR Y-14A and FR Y-14Q have not met the 
materiality thresholds to report the FR Y-14M due to their lack of 
mortgage and credit activities. The Board expects this situation to 
continue for the foreseeable future.
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    Estimated average hours per response: FR Y-14A: 926 hours; FR Y-
14Q: 1,979 hours; FR Y-14M: 1,072 hours; FR Y-14 On-going Automation 
Revisions: 480 hours; FR Y-14 Attestation On-going Attestation: 2,560 
hours.
    Estimated annual burden hours: FR Y-14A: 33,336 hours; FR Y-14Q: 
284,976 hours; FR Y-14M: 437,376 hours; FR Y-14 On-going Automation 
Revisions: 17,280 hours; FR Y-14 Attestation On-going Attestation: 
33,280 hours.
    General description of report: This family of information 
collections is composed of the following three reports:
     The FR Y-14A collects quantitative projections of balance 
sheet, income, losses, and capital across a range of macroeconomic 
scenarios and qualitative information on methodologies used to develop 
internal projections of capital across scenarios.\3\
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    \3\ On October 10, 2019, the Board issued a final rule that 
eliminated the requirement for firms subject to Category IV 
standards to conduct and publicly disclose the results of a company-
run stress test. See 84 FR 59032 (Nov. 1, 2019). That final rule 
maintained the existing FR Y-14 substantive reporting requirements 
for these firms in order to provide the Board with the data it needs 
to conduct supervisory stress testing and inform the Board's ongoing 
monitoring and supervision of its supervised firms. However, as 
noted in the final rule, the Board intends to provide greater 
flexibility to banking organizations subject to Category IV 
standards in developing their annual capital plans and consider 
further change to the FR Y-14 forms as part of a separate proposal. 
See 84 FR 59032, 59063.
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     The quarterly FR Y-14Q collects granular data on various 
asset classes, including loans, securities, trading assets, and PPNR 
for the reporting period.
     The monthly FR Y-14M is comprised of three retail 
portfolio- and loan-level schedules, and one detailed address-matching 
schedule to supplement two of the portfolio and loan-level schedules.
    The data collected through the FR Y-14A/Q/M reports provide the 
Board with the information needed to help ensure that large firms have 
strong, firm[hyphen]wide risk measurement and management processes 
supporting their internal assessments of capital adequacy and that 
their capital resources are sufficient given their business focus, 
activities, and resulting risk exposures. The reports are used to 
support the Board's annual Comprehensive Capital Analysis and Review 
(CCAR) and Dodd-Frank Act Stress Test (DFAST) exercises, which 
complement other Board supervisory efforts aimed at enhancing the 
continued viability of large firms, including continuous monitoring of 
firms' planning and management of liquidity and funding resources, as 
well as regular assessments of credit, market and operational risks, 
and associated risk management practices. Information gathered in this 
data collection is also used in the supervision and regulation of 
respondent financial institutions. Respondent firms are currently 
required to complete and submit up to 17 filings each year: One annual 
FR Y-14A filing, four quarterly FR Y-14Q filings, and 12 monthly FR Y-
14M filings. Compliance with the information collection is mandatory.
    Current actions and proposed revisions: The Board has temporarily 
revised the FR Y-14A report to allow eligible firms to incorporate the 
effects of the simplifications rule \4\ and tailoring rules \5\ 
effective with the December 31, 2019, as of date.
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    \4\ See 84 FR 35234 (July 22, 2019).
    \5\ See 84 FR 59230 and 84 FR 35234 (November 1, 2019).
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    The Board also has proposed revisions necessary to better identify 
risk as part of the stress test, such as revisions to the Trading and 
Counterparty schedules or sub-schedules, as well as capital revisions 
related to capital simplification, total loss absorbing capacity 
(TLAC), and standardized approach for counterparty credit risk on 
derivative contracts (SA-CCR). The Board also proposes to make several 
clarifications to the instructions that were, in part, prompted by 
questions the Board has received from reporting institutions. All 
proposed revisions would be effective for the September 30, 2020, 
report date for the FR Y-14Q and FR Y-14M, and for the December 31, 
2020, report date for the FR Y-14A.

Capital Simplifications

    On July 22, 2019, the Board, the Office of the Comptroller of the 
Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) 
(``the agencies'') published a final rule amending their regulatory 
capital rules \6\ to make a number of burden-reducing changes.\7\ In 
the simplifications rule, the agencies adopted a simpler methodology 
for firms not subject to the advanced approaches rule (non-advanced 
approaches banking organizations) \8\ to calculate minority interest 
limitations and simplified the regulatory capital treatment of mortgage 
servicing assets (MSAs), temporary difference deferred tax assets 
(DTAs), and investments in the capital of unconsolidated financial 
institutions for non-advanced approaches banking organizations. The 
revisions implemented by the simplifications rule become effective 
April 1, 2020.\9\
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    \6\ See 12 CFR part 3 (OCC); 12 CFR part 217 (Board); 12 CFR 
part 324 (FDIC). While the agencies have codified the capital rule 
in different parts of title 12 of the Code of Federal Regulations, 
the internal structure of the sections within each agency's rule is 
substantially similar. All references to sections in the capital 
rule or the proposal are intended to refer to the corresponding 
sections in the capital rule of each agency.
    \7\ See 84 FR 35234 (July 22, 2019).
    \8\ Non-advanced approaches banking organizations are 
institutions that do not meet the criteria in 12 CFR 3.100(b) (OCC); 
12 CFR 217.100(b) (Board); or 12 CFR 324.100(b) (FDIC).
    \9\ Eligible firms can choose to adopt the simplifications rule 
effective January 1, 2020.
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    In order to implement the effects of the simplifications rule into 
the FR Y-14 reports, the Board proposes to make a number of changes to 
the calculation of Common Equity Tier 1 (CET1) capital, Additional Tier 
1 (AT1) capital,

[[Page 15778]]

and Tier 2 (T2) capital for non-advanced approaches institutions only. 
Under the simplifications rule, the agencies raised the threshold for 
non-advanced approaches institutions for determining the amount of 
MSAs, temporary difference DTAs that could not be realized through net 
operating loss carrybacks (temporary difference DTAs),\10\ and 
investments in the capital of unconsolidated financial institutions 
that must be deducted from regulatory capital. In addition, the 
simplifications rule streamlined the capital calculation for minority 
interest includable in regulatory capital for non-advanced approaches 
institutions and made other technical changes to the regulatory capital 
rule.
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    \10\ The Board notes that An Act to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the 
budget for fiscal year 2018, Public Law 115-97 (originally 
introduced as the Tax Cuts and Jobs Act), enacted December 22, 2017, 
eliminated the concept of net operating loss carrybacks for U.S. 
federal income tax purposes, although the concept may still exist in 
particular jurisdictions for state or foreign income tax purposes.
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    The current regulatory capital calculations in FR Y-14A, Schedule 
A.1.d (Capital), and FR Y-14Q, Schedule D (Regulatory Capital), require 
that an institution's capital cannot include MSAs, certain temporary 
difference DTAs, and significant investments in the common stock of 
unconsolidated financial institutions in an amount greater than 10 
percent of CET1 capital, on an individual basis, and that those three 
data items combined cannot comprise more than 15 percent of CET1 
capital. When the reporting of regulatory capital calculations by non-
advanced approaches institutions in accordance with the simplifications 
rule takes effect, this calculation would be revised to require that 
MSAs or temporary difference DTAs in an amount greater than 25 percent 
of CET1 capital, must be deducted from a non-advanced approaches 
institution's capital. The 15 percent aggregate deduction threshold 
would be removed. In addition, the simplifications rule would 
streamline the current three categories of investments in financial 
institutions (non-significant investments in the capital of 
unconsolidated financial institutions, significant investments in the 
capital of unconsolidated financial institutions that are in the form 
of common stock, and significant investments in the capital of 
unconsolidated financial institutions that are not in the form of 
common stock) into a single category, investments in the capital of 
unconsolidated financial institutions, and require that non-advanced 
approaches institutions deduct amounts of these investments that exceed 
25 percent of CET1 capital. Any investments in excess of the 25 percent 
threshold would be deducted from capital using the corresponding 
deduction approach.
    Per the final tailoring rules, Category I and II firms are subject 
to the advanced approaches rule, while Category III and IV firms are 
not subject to the advanced approaches rule.\11\ Therefore, the Board 
proposes to specify reporting of capital simplifications to clearly 
delineate between the requirements for the different firm categories. 
In order to implement these regulatory capital changes from a 
regulatory reporting perspective, the Board proposes the following 
revisions to FR Y-14A, Schedule A.1.d and FR Y-14Q, Schedule D:
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    \11\ See 84 FR 59230 (November 1, 2019).
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FR Y-14A, Schedule A.1.d (Capital)

    The Board proposes to add new items and revise several existing 
items that relate to CET1 capital deductions to align with the 
revisions proposed to the FR Y-9C, Schedule HC-R (Regulatory Capital), 
Part I (Regulatory Capital Components and Ratios). These items would 
allow Category III and IV firms to reflect the 25 percent of CET1 
capital limit for MSAs and certain temporary difference DTAs. The new 
items would only be required for Category III and IV firms. These new 
items would be:
     ``Investments in the capital of unconsolidated financial 
institutions, net of associated [deferred tax liabilities] DTLs, that 
exceed 25 percent common equity tier 1 capital deduction threshold'';
     ``Aggregate amount of investments in the capital of 
unconsolidated financial institutions, net of associated DTLs'';
     ``25 percent common equity tier 1 deduction threshold''; 
and
     ``Amount to be deducted from common equity tier 1 due to 
25 percent deduction threshold.''
    The existing items that the Board proposes to revise are:
     ``Significant investments in the capital of unconsolidated 
financial institutions in the form of common stock, net of associated 
DTLs, that exceed 10 percent common equity tier 1 capital deduction 
threshold'' (item 37);
     ``MSAs, net of associated DTLs, that exceed the common 
equity tier 1 capital deduction threshold'' (item 38);
     ``DTAs arising from temporary differences that could not 
be realized through net operating loss carrybacks, net of related 
valuation allowances and net of DTLs, that exceed the common equity 
tier 1 capital deduction threshold'' (item 39);
     ``Amount of significant investments in the capital of 
unconsolidated financial institutions in the form of common stock; 
MSAs, net of associated DTLs; and DTAs arising from temporary 
differences that could not be realized through net operating loss 
carrybacks, net of related valuation allowances and net of DTLs; that 
exceeds the 15 percent common equity tier 1 capital deduction 
threshold'' (item 40);
     ``Common equity tier 1 deduction threshold'' (item 75);
     ``Amount to be deducted from common equity tier 1 due to 
the deduction threshold'' (item 76);
     ``Common equity tier 1 deduction threshold'' (item 78); 
and
     ``Amount to be deducted from common equity tier 1 due to 
the deduction threshold'' (item 79).
    Also, the Board proposes to revise the instructions for the 
following groups of items and to indicate that they would only be 
reported by Category I and II firms:
     ``Non-significant investments in the capital of 
unconsolidated financial institutions in the form of common stock, net 
of DTLs'' (items 64 through 66);
     ``Significant investments in the capital of unconsolidated 
financial institutions in the form of common stock, net of DTLs'' 
(items 67 through 71); and
     ``Aggregate of items subject to the 15% limit (significant 
investments, mortgage servicing assets and deferred tax assets arising 
from temporary differences)'' (items 80 through 83).
    On the FR Y-9C, Schedule HC-R, Part I, several items were 
renumbered to reflect the simplifications rule. As a result, the Board 
also proposes to revise the corresponding FR Y-14A, Schedule A.1.d, 
items to reference the renumbered FR Y-9C items.
    Additionally, the Board proposes to make a number of revisions to 
the instructions for certain FR Y-14A, Schedule A.1.d, items that would 
remove language regarding the inclusion of any applicable transition 
provisions. These revisions would be applicable to Category I, II, III, 
and IV firms. Specifically, the Board proposes to revise the 
instructions for the following items:
     Item 18 (``AOCI opt-out election'');
     Item 35 (``Non-significant investments in the capital of 
unconsolidated financial institutions in the form of common stock that 
exceed

[[Page 15779]]

the 10 percent threshold for non-significant investments'');
     Item 37 (``Significant investments in the capital of 
unconsolidated financial institutions in the form of common stock, net 
of associated DTLs, that exceed 10 percent common equity tier 1 capital 
deduction threshold'');
     Item 38 (``MSAs, net of associated DTLs, that exceed the 
10 percent common equity tier 1 capital deduction threshold'');
     Item 39 (``DTAs arising from temporary differences that 
could not be realized through net operating loss carrybacks, net of 
related valuation allowances and net of DTLs, that exceed the 10 
percent common equity tier 1 capital deduction threshold'');
     Item 40 (``Amount of significant investments in the 
capital of unconsolidated financial institutions in the form of common 
stock; MSAs, net of associated DTLs; and DTAs arising from temporary 
differences that could not be realized through net operating loss 
carrybacks, net of related valuation allowances and net of DTLs; that 
exceeds the 15 percent common equity tier 1 capital deduction 
threshold'');
     Item 48 (``Additional tier 1 capital deductions'');
     Item 84 (``Amount to be deducted from common equity tier 1 
due to 15 percent deduction threshold, prior to transition 
provision''); and
     Item 110 (``Deferred tax assets that arise from net 
operating loss and tax credit carryforwards, net of DTLs, but gross of 
related valuation allowances'').

FR Y-14Q, Schedule D (Regulatory Capital)

    In order to incorporate the effects of the simplifications rule on 
FR Y-14Q, Schedule D, the Board proposes to add four items related to 
non-significant investments in the capital of unconsolidated financial 
institutions in the form of common stock:
     ``Aggregate amount of non-significant investments in the 
capital of unconsolidated financial institutions'';
     ``Non-significant investments in the capital of 
unconsolidated financial institutions in the form of common stock'';
     ``10 percent threshold for non-significant investments''; 
and
     ``Amount to be deducted from common equity tier 1 due to 
10 percent deduction threshold.''
    The Board further proposes that these four new items, as well as 
the items formerly numbered 1 through 5 (``Significant investments in 
the capital of unconsolidated financial institutions in the form of 
common stock'') and 21 through 25 (``Aggregate of items subject to the 
15% limit (significant investments, mortgage servicing assets, and 
deferred tax assets arising from temporary differences)''), be reported 
only by Category I and II firms.
    The Board also proposes to add three items related to investments 
in the capital of unconsolidated financial institutions that would only 
be reported by Category III and IV firms:
     ``Aggregate amount of investments in the capital of 
unconsolidated financial institutions'';
     ``25 percent threshold for investments in the capital of 
unconsolidated financial institutions''; and
     ``Amount to be deducted from common equity tier 1 due to 
25 percent deduction threshold.''
    Finally, the Board proposes to rename two items and revise the 
instructions for four items to account for the different deduction 
threshold for Category I, II, III, and IV firms:
     The instructions would be revised for ``10 percent common 
equity tier 1 deduction threshold'' (existing items 13 and 19). These 
items would also be renamed to ``Common equity tier 1 deduction 
threshold: 10 percent for Category I and II firms, 25 percent for 
Category III and IV firms''; and
     The instructions would be revised for ``Amount to be 
deducted from common equity tier 1 due to 10 percent deduction 
threshold'' (existing items 14 and 20).

Total Loss-Absorbing Capacity (TLAC)

    On April 8, 2019, the agencies published a notice of proposed 
rulemaking that would address an advanced approaches banking 
organization's regulatory capital treatment of an investment in 
unsecured debt instruments issued by foreign or U.S. global 
systemically important banks (GSIBs) for the purposes of meeting 
minimum TLAC and, where applicable, long-term debt (LTD) requirements, 
or liabilities issued by GSIBs that are pari passu or subordinated to 
such debt instruments (TLAC Holdings NPR).\12\ Under the proposal, 
investments by an advanced approaches banking organization in such 
unsecured debt instruments generally would be subject to deduction from 
the advanced approaches banking organization's own regulatory capital. 
The Board also proposed to require that banking organizations subject 
to minimum TLAC and LTD requirements under Board regulations publicly 
disclose their TLAC and LTD issuances in a manner described in this 
proposal.
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    \12\ See 84 FR 13814 (April 8, 2019).
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    Under the TLAC Holdings NPR, the capital calculations of advanced 
approaches banking organizations would take into account the total 
amount of deductions related to investments in own CET1, AT1, and T2 
capital instruments; investments in own covered debt instruments, if 
applicable; reciprocal cross holdings; non-significant investments in 
the capital and covered debt instruments of unconsolidated financial 
institutions that exceed certain thresholds; certain investments in 
excluded covered debt instruments, as applicable; and significant 
investments in the capital and covered debt instruments of 
unconsolidated financial institutions. Any deductions related to 
covered debt instruments and excluded covered debt instruments 
(together, TLAC debt holdings) would be applied at the level of T2 
capital under the agencies' existing regulatory capital rule. Any 
required deduction would be made using the ``corresponding deduction 
approach,'' by which the advanced approaches banking organization would 
deduct TLAC debt holdings first from T2 capital and, if it had 
insufficient T2 capital to make the full requisite deduction, deduct 
the remaining amount from AT1 capital and then, if necessary, from CET1 
capital.
    In order to incorporate these proposed regulatory changes, the 
Board proposes the following revisions to FR Y-14A, Schedule A.1.d, and 
FR Y-14Q, Schedule D. These revisions to the FR Y-14A and FR Y-14Q 
would remain pending until such time as the Board may adopt the TLAC 
Holdings proposal in final form, at which point, these revisions would 
be incorporated into the FR Y-14 reports.

FR Y-14A, Schedule A.1.d (Capital)

    As a part of the TLAC Holdings NPR, the Board proposed revisions to 
the FR Y-9C, Schedule HC-R, Part I, that would collect information from 
U.S. GSIBs and from IHCs of foreign GSIBs. Specifically, the proposed 
items would collect information on these holding companies' LTD and 
TLAC amounts, LTD and TLAC ratios, and TLAC buffer. In order to align 
Schedule A.1.d with the FR Y-9C, the Board is proposing to add the 
following items to Schedule A.1.d:
     ``Outstanding eligible long-term debt'';
     ``Total loss-absorbing capacity'';
     ``LTD and TLAC total risk-weighted assets ratios'';
     ``LTD and TLAC leverage ratios'';

[[Page 15780]]

     ``LTD and TLAC supplementary leverage ratios'';
     ``Institution-specific TLAC buffer necessary to avoid 
limitations on distributions discretionary bonus payments'';
     ``TLAC risk-weighted buffer''; and
     ``TLAC leverage buffer.''

FR Y-14Q, Schedule D (Regulatory Capital)

    The Board proposes that the instructions for proposed item 1 
(``Aggregate amount of non-significant investments in the capital of 
unconsolidated financial institutions'') would require Category I and 
II firms to include covered debt instruments.

Standardized Approach for Counterparty Credit Risk on Derivative 
Contracts (SA-CCR)

    On January 24, 2020, the agencies published a final rule to 
implement the SA-CCR approach for calculating the exposure amount of 
derivative contracts under the capital rule.\13\ The SA-CCR final rule 
becomes effective on April 1, 2020, with a mandatory compliance date of 
January 1, 2022.
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    \13\ See 85 FR 4362 (January 24, 2020).
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    The final rule replaces the current exposure methodology (CEM) with 
SA-CCR in the capital rule for advanced approaches banking 
organizations. Under the final rule, an advanced approaches banking 
organization will have to choose either SA-CCR or the internal models 
methodology to calculate the exposure amount of its noncleared and 
cleared derivative contracts and use SA-CCR to determine the risk-
weighted asset amount of its default fund contributions. In addition, 
an advanced approaches banking organization will be required to use SA-
CCR (instead of CEM) to calculate the exposure amount of its noncleared 
and cleared derivative contracts and to determine the risk-weighted 
asset amount of its default fund contributions under the standardized 
approach, as well as to determine the exposure amount of its derivative 
contracts for purposes of the supplementary leverage ratio. When using 
SA-CCR, a banking organization should use the value of the replacement 
cost amount for its current credit exposure.
    Under the final rule, a non-advanced approaches banking 
organization will be able to use either CEM or SA-CCR to calculate the 
exposure amount of its noncleared and cleared derivative contracts and 
to determine the risk-weighted asset amount of its default fund 
contributions under the standardized approach. A Category III banking 
organization will also use SA-CCR for calculating its supplementary 
leverage ratio if it chooses to use SA-CCR to calculate its derivative 
and default fund exposures.
    The Board proposes to revise FR Y-14A, Schedule A.1.c.1 (Risk-
Weighted Assets) as follows to incorporate SA-CCR:

FR Y-14A, Schedule A.1.c.1 (Risk-Weighted Assets)

    Generally, the reporting of derivatives elements in Schedule 
A.1.c.1 is driven by the treatment of cleared derivatives' variation 
margin (settled-to-market versus collateralized-to-market), netting 
provisions impacting the calculations of notional and exposure amounts, 
and attributions of derivatives to cleared versus non-cleared 
derivatives. In order to incorporate the SA-CCR final rule and to 
ensure alignment with the FR Y-9C, Schedule HC-R, Part II (Risk-
Weighted Assets), the Board proposes to revise the instructions for 
Schedule A.1.c.1, Item 45 (``Current credit exposure across all 
derivative contracts covered by the regulatory capital rules'') to 
refer to the corresponding FR Y-9C item (Schedule HC-R, Part II, 
Memoranda Item 1, ``Current credit exposure across all derivative 
contracts covered by the regulatory rules'').

General

    For clarification purposes, the Board proposes to clarify the FR Y-
14A and FR Y-14Q instructions to affirm that the threshold for filing 
the Trading and Counterparty schedules (in the FR Y-14Q) and sub-
schedules (in the FR Y-14A) are based on a four-quarter average of 
trading assets and liabilities (either in aggregate of $50 billion or 
more or in aggregate greater than or equal to 10 percent of total 
consolidated assets, as indicated in the instructions), calculated as 
of two quarters preceding the reporting quarter.

FR Y-14A, Schedule A (Summary)

Schedule A.1.d (Capital)

    Firms are currently required to report the ``Capital--DFAST'' sub-
schedule of FR Y-14A, Schedule A.1.d, using applicable capital action 
assumptions.\14\ The tailoring rules adjusted the frequency of the 
requirement to conduct the company-run stress tests under the mandated 
scenarios provided by the Federal Reserve for firms subject to Category 
III standards.\15\ As a result, the Board proposes to revise the 
instructions to require firms subject to Category III standards to only 
report the ``Capital--DFAST'' Sub-schedule of FR Y-14A, Schedule A.1.d, 
every other year. Annual submission of this sub-schedule would no 
longer be required.
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    \14\ See 12 CFR 225.8 and the CCAR instructions for more 
information regarding the capital action assumptions used to 
complete the Capital--CCAR sub-schedule. See 12 CFR 252.56(b) for 
information regarding the capital assumptions used to complete the 
Capital--DFAST sub-schedule.
    \15\ See 84 FR 59230 and 84 FR 59032 (both November 1, 2019).
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    The Board proposes to make minor clarifications to several ratio 
items on Schedule A.1.d in response to previous industry comments. The 
current instructions for item 104 (``Supplementary Leverage Ratio'') 
indicate that this item is derived. However, this item is actually 
reported by firms. The Board proposes to make this item derived, and to 
indicate that this item should correspond to the definition used in FR 
Y-9C, Schedule HC-R, Part I, item 45 (``Advanced approaches holding 
companies only: Supplementary leverage ratio''). Further, several ratio 
fields are not derived in a consistent format on the FR Y-9C and FR Y-
14. For some items, the FR Y-9C requires the ratio in `x.xxx' format 
while the FR Y-14 requires the same ratio in `.0xxxx' format. To align 
the required format of these items, the Board proposes to revise the 
instructions for the following Schedule A.1.d ratio items so that they 
will be derived in the same format as on the FR Y-9C:
     Item 97 (``Common Equity Tier 1 Ratio'');
     Item 99 (``Tier 1 Capital Ratio'');
     Item 101 (``Total risk-based capital ratio'');
     Item 103 (``Tier 1 Leverage Ratio''); and
     Item 104 (``Supplementary Leverage Ratio'').

Other Schedules

    The Board proposes to eliminate FR Y-14A, Schedules A.1.c.2 
(Advanced RWA) and A.7.c (PPNR Metrics), in order to reduce burden 
while continuing to collect all information necessary to conduct 
supervisory stress testing and qualitative reviews of firms' capital 
plans. The Board also proposes to remove any references to these 
schedules across the FR Y-14A/Q/M instructions. Per section 225.8 of 
the Board's Regulation Y, firms should not use the advanced approaches 
to calculate their regulatory capital ratios for purposes of stress 
testing and capital planning. As a result, firms are not required to 
report Schedule A.1.c.2, and so the Board proposes to eliminate this 
schedule. For Schedule A.7.c, it has been determined that point-in-time 
values (as opposed to projected values,

[[Page 15781]]

which are reported in Schedule A.7.c), are more useful for stress 
testing purposes. Point-in-time PPNR metric values are currently 
reported in FR Y-14Q, Schedule G.3 (PPNR Metrics).

FR Y-14Q, Schedule F (Trading)

Formalizing Supplemental Collections

    The Board proposes to formalize two supplemental collections by 
incorporating them into Schedule F. First, the Board proposes to 
require firms to report corporate single name exposures at the obligor 
level in Schedule F.22 ([Incremental Default Risk] IDR--Corporate 
Credit) along with corporate index exposures at the series level. 
Collecting this information would allow the Board to enhance its stress 
testing of issuer default risk. Second, the Board proposes to require 
firms to report a version of Schedule F that captures fair value option 
(FVO) loan hedges. Requiring firms to report a version of Schedule F 
that captures FVO loan hedges would enable to the Board to more 
adequately assess the risk associated with firm positions as they 
relate to FVO loan hedges.

Hedge Reporting

    Currently, some firms are reporting X-valuation adjustment (XVA) 
hedges (e.g. funding valuation adjustment hedges) and accrual loan 
hedges within the credit valuation adjustment (CVA) hedge version of 
Schedule F. This causes an inadvertent comingling of CVA, XVA, and 
accrual loan hedges, and subsequent calculation of profit and loss on 
these hedges. In order to isolate the impact of specific hedges, the 
Board proposes two changes related to hedge reporting on Schedule F. 
First, to remove ambiguity, the Board proposes to revise the 
instructions to clarify that XVA hedges should not be reported on 
Schedule F. Second, the Board proposes to require firms to report a 
version of Schedule F that captures the impact of accrual loan hedges. 
Separately collecting hedges for accrual loans would ensure consistent 
hedge treatment between firms, which would allow the Board to better 
assess the risks associated with accrual loans.

Municipal Exposures

    Currently, Schedule F.16 (Munis) has a `` ``Interest Rate Variability'' (Schedule H.1, item 37; 
Schedule H.2, item 26),
     ``Interest Rate'' (38;27),
     ``Interest Rate Index'' (39;28),
     ``Interest Rate Spread'' (40;29),
     ``Interest Rate Ceiling'' (41;30),
     ``Interest Rate Floor'' (42;31), and
     ``Frequency of Rate Reset'' (N/A; 32).

Ambiguous or Inconsistent Instructions

    For consistency with the language used in Schedule H.1, item 25 
(``Utilized Exposure Global''), the Board proposes to add language to 
Schedule H.2, item 3 (``Outstanding Balance'') to require firms to 
report zero for fully undrawn commitments.
    Additionally, the ``Property Type'' (Schedule H.2, item 9) 
description requires reporters to use predominance to determine type 
when possible. However, the ``Property Size'' (Schedule H.2, item 39) 
instructions do not make clear that predominance is allowed to 
determine a specific property type (rather than having to report as 
``Other'' if the loan consists of mixed property types). To eliminate 
this ambiguity, the Board proposes to revise the instructions for item 
39 to clarify that predominance can be used to determine the units even 
if the loan consists of mixed property types.
    Finally, the current Schedule H instructions do not require firms 
to report information regarding exposures to capital call 
subscriptions. Subscription finance typically provides general-purpose 
term and revolving credit facilities to private equity funds, is 
provided by one or more lenders, is secured by a pledge of the right to 
call, enforces capital calls, and receives capital contributions from a 
fund's limited partners. In order to monitor the risks associated with 
capital call subscriptions, the Board proposes to add response options 
to Schedule H.1, items 20 (``Credit Facility'') and 22 (``Credit 
Facility Purpose'') that would allow firms to indicate which facilities 
are capital call subscriptions.

[[Page 15782]]

FR Y-14Q, Schedule L (Counterparty)

Credit Default Swap (CDS) Hedging

    The Board has received several questions from firms regarding the 
definition of ``CDS Hedge Notional'' in Schedule L.5.1 (Derivative and 
securities financing transaction (SFT) information by counterparty 
legal entity and netting set/agreement), as the current definition is 
ambiguous. Accordingly, the Board is proposing to revise the 
instructions for this item in several ways. First, the Board proposes 
to clarify that the net notional amount of specific CDS hedges should 
be reported in this item. Second, the Board proposes to clarify that 
when firms are calculating the net notional amount, purchased CDS hedge 
notional amounts must be reflected as negative amounts, and sold 
amounts must be reflected as positive amounts. Third, the Board 
proposes to remove the reference to ``plain vanilla CDS'' from the 
instructions, and clarify that single-name and non-tranched index 
credit derivatives for which one of the constituents matches directly 
to counterparty legal entity level should be included. The Board would 
further clarify that positions reported in this item must be ``eligible 
credit derivatives,'' as defined in section 252.71 of the Board's 
Regulation YY.

Variation Margins

    There is currently an inconsistency between the FR Y-14Q, Schedule 
L instructions and SR Letter 17-7 (Regulatory Capital Treatment of 
Certain Centrally-cleared Derivative Contracts under the Board's 
Capital Rule) \16\ regarding how variation margins can be treated. Per 
SR Letter 17-7, variation margins can be treated as part of mark-to-
market (MtM) value when computing firms' gross current exposure (CE) 
for centrally cleared derivatives subject to the settle-to-market 
approach. However, this treatment is not reflected in the Schedule L 
instructions. To align the instructions with SR Letter 17-7, the Board 
proposes to revise the instructions to allow for this treatment.
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    \16\ https://www.federalreserve.gov/supervisionreg/srletters/sr1707a1.pdf.
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Client-Cleared Derivatives Exposures

    The Board proposes to require that all client-cleared derivatives 
exposures be reported on the large counterparty default (LCPD) section. 
The Board believes these exposures present credit risk that would 
increase under stress, and could potentially be material for some 
firms. These derivatives create an exposure for a firm to its client to 
the extent that the firm is guaranteeing the client performance to the 
central counterparty (CCP) or the exchange. If a client defaults when 
its exposure moves significantly out of the money to the CCP (and 
therefore the CCP is in the money), then the clearing firm will suffer 
a loss as a result of the performance guarantee it has provided to the 
CCP. This proposed reporting change would allow the Board to evaluate 
the materiality of the potential LCPD loss impact associated with the 
client cleared derivatives exposures. The Board already collects 
information on client cleared SFT exposures and is proposing a similar 
treatment for client cleared derivatives exposures. Please note that 
the Board would not include these exposures as part of the stress test 
at this time. Rather, this information would only be collected for 
monitoring purposes.

Additional Clarifications

    The Board also proposes the following additional revisions that 
would address inconsistent interpretations:
     Provide illustrative examples to clarify netting agreement 
reporting requirements on Schedule L.5 (Derivatives and Securities 
Financing Transitions (SFT) Profile);
     Clarify the definition of ``Excess Variation Margin (for 
CCPs)'' to be more consistent with the CCP margining practice;
     Clarify how centrally cleared exposures should be 
computed. This clarification would ensure consistent reporting across 
firms;
     Clarify that IHC affiliate counterparties should be 
considered counterparties and included for reporting across Schedule L;
     Provide specific clarifications on reporting requirements 
associated with CSA details when multiple CSAs apply to a single 
netting agreement;
     Clarify the definition of ``New Notional During Quarter'' 
on Schedules L.1.a-d;
     Clarify the definition of ``CDS Reference Entity Type''; 
provide guidelines for the definitions of vanilla, structured, and 
exotic contracts; reporting of data fields to specify agreement 
population (SFT and/or derivatives); and reporting of to be announced 
(TBA) positions;
     Clarify that the U.S. dollar equivalent of the respective 
currency bucket should be used in the ``Unstressed MtM Cash Collateral 
(Derivatives)'' and ``Total Unstressed MtM Collateral (Derivatives)'' 
items; and
     Clarify rank methodology to include affiliate as an 
allowable entry. This change would help reinforce reporting 
requirements of counterparty types reported.
    The Board also proposes to revise the instructions for the 
``External Rating'' field in Schedule L.5.3 (Aggregate SFTs by Internal 
Rating), to require firms to report an external rating equivalent to a 
counterparty's internal rating, as reported in the ``Internal Rating'' 
field of Schedule L.5.3. These instructions were inadvertently revised 
in December of 2019.\17\
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    \17\ See 84 FR 70529 (December 23, 2019).
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FR Y-14Q, Schedule M (Balances)

    Effective June 30, 2018, ``Purchased credit card relationships and 
nonmortgage servicing assets'' was removed from FR Y-9C, Schedule M 
(Memoranda), and the values previously reported in this item were added 
to FR Y-9C, Schedule M, item 12.c, ``All other identifiable intangible 
assets''.\18\ This point-in-time item is critical for stress testing 
modeling. Therefore, the Board proposes to add this item to Schedule M 
of the FR Y-14Q.
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    \18\ See 83 FR 36935 (July 31, 2018).
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FR Y-14M

    The Board proposes several revisions to the FR Y-14M that would 
clarify reporting. The following clarifications to Schedules A.1 (First 
Lien, Loan Level), B.1 (Home Equity, Loan Level), and D.2 (Credit Card, 
Portfolio Level) are proposed:
     Schedule A--item 23, Schedule B--item 19 (``Property 
Type''): Clarify how to report planned unit developments, as there is 
currently ambiguity. This clarification would make it clear that if the 
property type is known, then firms should report the underlying 
property type. If it is unknown, then firms should report it as a 
planned unit development.
     Schedule A--item 63, Schedule B--item 53 (``Foreclosure 
Status''): Expand the definition of these items to have an option to 
capture loans that have foreclosure suspended for reasons other than 
loss mitigation or bankruptcy proceedings. This expanded definition 
would allow firms to report all applicable loans as foreclosure 
suspended, regardless of the reason.
     Schedule A--item 65, Schedule B--item 87 (``Foreclosure 
Suspended''): Clarify how to report this field in the month the loan 
liquidates. This clarification would make it clear that the foreclosure 
status should be post-sale foreclosure in these instances.
     Schedule B--item 61 (``Workout Type Completed''): Define 
the ``Settlement'' and ``Other'' values. ``Settlement'' and ``Other'' 
are not currently defined, and firms are not sure

[[Page 15783]]

when they should be used. These definitions would remove that 
ambiguity.
     Schedule D--items 11 (``Projected Managed Losses'') and 12 
(``Projected Booked Losses''): Clarify how to report these fields upon 
the adoption of the Accounting Standards Update 2016-13 (``Financial 
Instruments--Credit Losses (Topic 326): Measurement of Credit Losses on 
Financial Instruments'').

Temporary Revisions to the FR Y-14A/Q/M

    As a result of the simplified threshold deduction framework and new 
accumulated other comprehensive income (AOCI) opt-out election 
discussed below, the simplifications and tailoring rules could have a 
material impact on projected capital levels for certain non-advanced 
approaches institutions. In order to allow non-advanced approaches 
institutions to be able to incorporate the effects of the 
simplifications and tailoring rules effective for FR Y-14A reports 
reflecting the December 31, 2019, as-of date, which must be submitted 
to the Board by April 6, 2020, the Board is unable to satisfy the 
normal Paperwork Reduction Act clearance process. The Board has 
determined that it must revise the FR Y-14A quickly and public 
participation in the approval process would defeat the purpose of the 
collection of information, as delaying the revisions would result in 
the collection of inaccurate information, and would interfere with the 
Board's ability to perform its statutory duties pursuant to section 165 
of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-
Frank Act).\19\
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    \19\ 12 U.S.C. 5365.
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Capital Simplifications

    In order to allow eligible firms to report projected capital levels 
consistent with the capital rule then in effect, the Board has 
temporarily revised the FR Y-14A instructions for the December 31, 
2019, as-of date, to allow non-advanced approaches institutions to 
report certain capital items in a manner that aligns with the 
simplifications rule. Specifically, the Board has temporarily revised 
the instructions for several items on FR Y-14A, Schedule A.1.d, and 
Schedule A.1.c.1 (Standardized risk-weighted assets), to allow eligible 
firms to report data beginning with the second projected quarter that 
incorporates the effects of capital simplifications. The instructions 
for the following FR Y-14A, Schedule A.1.d, items have been temporarily 
revised to provide as follows:
     Item 35 (``Non-significant investments in the capital of 
unconsolidated financial institutions in the form of common stock that 
exceed the 10 percent threshold for non-significant investments'');
     Item 37 (``Significant investments in the capital of 
unconsolidated financial institutions in the form of common stock, net 
of associated DTLs, that exceed 10 percent common equity tier 1 capital 
deduction threshold'');
     Item 38 (``MSAs, net of associated DTLs, that exceed the 
10 percent common equity tier 1 capital deduction threshold'');
     Item 39, (``DTAs arising from temporary differences that 
could not be realized through net operating loss carrybacks, net of 
related valuation allowances and net of DTLs, that exceed the 10 
percent common equity tier 1 capital deduction threshold'');
     Item 40, (``Amount of significant investments in the 
capital of unconsolidated financial institutions in the form of common 
stock; MSAs, net of associated DTLs; and DTAs arising from temporary 
differences that could not be realized through net operating loss 
carrybacks, net of related valuation allowances and net of DTLs; that 
exceeds the 15 percent common equity tier 1 capital deduction 
threshold'');
     Item 66 (``Amount of non-significant investments that 
exceed the 10 percent deduction threshold for non-significant 
investments'');
     Item 67, (``Gross significant investments in the capital 
of unconsolidated financial institutions in the form of common 
stock'');
     Item 70, (``10 percent common equity tier 1 deduction 
threshold'');
     Item 75, (``10 percent common equity tier 1 deduction 
threshold'');
     Item 78, (``10 percent common equity tier 1 deduction 
threshold''); and
     Item 84, (``Amount to be deducted from common equity tier 
1 due to 15 percent deduction threshold, prior to transition provision 
(greater of item 83 minus item 81 or zero)'').
    The Board also has temporarily revised the instructions for FR Y-
14A, Schedule A.1.c.1, to require non-advanced approaches institutions 
to incorporate the effects of capital simplifications on applicable 
risk-weighted asset items (items 1-41), beginning in the second 
projected quarter.

Tailoring

    Prior to the tailoring rules, non-advanced approaches firms could 
elect to recognize elements of AOCI in regulatory capital. The result 
of this election is reported in item 18 (``AOCI opt-out election''). 
Per the guidance provided in SR Letter 20-2 (Frequently Asked Questions 
on the Tailoring Rules), Category III and IV firms are required to make 
a new election to determine whether to recognize elements of AOCI in 
regulatory capital, beginning January 1, 2020. This election must be 
made during the first reporting period after the banking organization 
meets the definition of a Category III or IV firm. The Board proposes 
to revise the instructions for item 18 to adhere to the guidance 
provided in SR Letter 20-2.
    Previously, the instructions to FR Y-14A Schedule A.1.d, item 18 
did not contemplate a situation in which a holding company would make 
an AOCI opt-out election on a FR Y-9C report with an as-of date other 
than (1) March 31, 2015, or (2) for a holding company that comes into 
existence after that date, the first FR Y-9C report filed by the 
holding company. As such, eligible firms will not have the ability to 
reflect this new election in projected quarters for the December 31, 
2019, FR Y-14A submission.
    Because the ability to make an AOCI opt-out election could have a 
material impact on projected capital levels for certain firms, the 
Board has temporarily revised FR Y-14A Schedule A.1.d, item 18 to 
reflect that Category III and IV firms that were previously advanced 
approaches institutions must make a new AOCI opt-out election during 
the first reporting period after the firm meets the definition of a 
Category III Board-regulated institution or Category IV Board-regulated 
institution. This temporary revision will permit firms to reflect this 
new election in projected quarters for the December 31, 2019, FR Y-14A 
submission.
    Legal authorization and confidentiality: The Board has the 
authority to require BHCs to file the FR Y-14 reports pursuant to 
section 5(c) of the Bank Holding Company Act (``BHC Act''), (12 U.S.C. 
1844(c)), and pursuant to section 165(i) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (Dodd-Frank Act) (12 U.S.C. 5365(i)) 
as amended by section 401(a) and (e) of the Economic Growth, Regulatory 
Relief, and Consumer Protection Act (EGRRCPA).\20\ The Board has 
authority to require SLHCs to file the FR Y-14 reports pursuant to 
section 10(b) of the Home Owners' Loan Act (12 U.S.C. 1467a(b)), as 
amended by section 369(8) and 604(h)(2) of the Dodd-Frank Act. Lastly, 
the Board has authority to require U.S. IHCs of FBOs to file the FR

[[Page 15784]]

Y-14 reports pursuant to section 5 of the BHC Act, as well as pursuant 
to sections 102(a)(1) and 165 of the Dodd-Frank Act (12 U.S.C. 
5311(a)(1) and 5365).\21\ In addition, section 401(g) of EGRRCPA (12 
U.S.C. 5365 note) provides that the Board has the authority to 
establish enhanced prudential standards for foreign banking 
organizations with total consolidated assets of $100 billion or more, 
and clarifies that nothing in section 401 ``shall be construed to 
affect the legal effect of the final rule of the Board . . . entitled 
`Enhanced Prudential Standard for [BHCs] and Foreign Banking 
Organizations' (79 FR 17240 (March 27, 2014)), as applied to foreign 
banking organizations with total consolidated assets equal to or 
greater than $100 million.'' \22\ The FR Y-14 reports are mandatory. 
The information collected in the FR Y-14 reports is collected as part 
of the Board's supervisory process, and therefore, such information is 
afforded confidential treatment pursuant to exemption 8 of the Freedom 
of Information Act (FOIA) (5 U.S.C. 552(b)(8)). In addition, 
confidential commercial or financial information, which a submitter 
actually and customarily treats as private, and which has been provided 
pursuant to an express assurance of confidentiality by the Board, is 
considered exempt from disclosure under exemption 4 of the FOIA (5 
U.S.C. 552(b)(4)).\23\
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    \20\ Public Law 115-174, Title IV 401(a) and (e), 132 Stat. 
1296, 1356-59 (2018).
    \21\ Section 165(b)(2) 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 of 1978 (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-14 
reports.
    \22\ The Board's Final Rule referenced in section 401(g) of 
EGRRCPA specifically stated that the Board would require IHCs to 
file the FR Y-14 reports. See 79 FR 17240, 17304 (March 27, 2014).
    \23\ Please note that the Board publishes a summary of the 
results of the Board's CCAR testing pursuant to 12 CFR 
225.8(f)(2)(v), and publishes a summary of the results of the 
Board's DFAST stress testing pursuant to 12 CFR 252.46(b) and 12 CFR 
238.134, which includes aggregate data. In addition, under the 
Board's regulations, covered companies must also publicly disclose a 
summary of the results of the Board's DFAST stress testing. See 12 
CFR 252.58; 12 CFR 238.146. The public disclosure requirement 
contained in 12 CFR 252.58 for covered BHCs and covered IHCs is 
separately accounted for by the Board in the Paperwork Reduction Act 
clearance for FR YY (OMB No. 7100-0350) and the public disclosure 
requirement for covered SLHCs is separately accounted for in by the 
Board in the Paperwork Reduction Act clearance for FR LL (OMB No. 
7100-NEW).
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    Consultation outside the agency: There has been no consultation 
outside the agency.

    Board of Governors of the Federal Reserve System, March 16, 
2020.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2020-05723 Filed 3-18-20; 8:45 am]
 BILLING CODE 6210-01-P