Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB, 58054-58055 [2020-20509]

Download as PDF 58054 Federal Register / Vol. 85, No. 181 / Thursday, September 17, 2020 / Notices 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. jbell on DSKJLSW7X2PROD with NOTICES Proposal Under OMB Delegated Authority To Extend for Three Years, Without Revision, the Following Information Collection: Report title: Board Public website Usability Surveys. Agency form number: FR 3076. OMB control number: 7100–0366. Frequency: As needed. Respondents: Individual users and potential users of the Board’s public website. Estimated number of respondents: Surveys: 100; focus groups: 20. Estimated average hours per response: Surveys: 0.25; focus groups: 1.5. Estimated annual burden hours: Surveys: 300; focus groups: 120; total: 420. General description of report: The FR 3076 is used to gather qualitative and quantitative information directly from users or potential users of the Board’s website such as the Congress, other government agencies, the public, economic educators, economists, financial institutions, financial literacy groups, and community development groups and more. Participation is voluntary. The FR 3076 may seek information from users or potential users of various VerDate Sep<11>2014 17:37 Sep 16, 2020 Jkt 250001 Board web pages, including press releases, data releases and downloads, reports, supervision manuals, brochures, new web pages, audio, video, and use of social media. Information gathered may also include general input on users’ interests and needs, feedback on website navigation and layout, distribution channels, or other factors which may affect the ability of users to locate and access content online. Qualitative collections conducted using the FR 3076 include data gathering methods such as focus groups and individual interviews. Quantitative surveys conducted using the FR 3076 include surveys conducted online or via mobile device, telephone, mail, emails, or a combination of these methods. The Board may contract with an outside vendor to conduct focus groups, interviews, or surveys, or the Board may collect the data directly. Legal authorization and confidentiality: The Board uses its website and social media to communicate important information to the public about a variety of different issues. The Board is required to provide certain information on its website. For example, under section 2B of the Federal Reserve Act the Board is required to provide certain reports, audits, and other information that ‘‘the Board reasonably believes is necessary or helpful to the public in understanding the accounting, financial reporting, and internal controls of the Board and the Federal reserve banks’’ (12 U.S.C. 225b(c)). In addition, the Board uses its website to provide the public with information about a variety of other matters, including information about the Board, its actions, and the economy. The responses to the FR 3076 help the Board determine how to most effectively communicate this information to the public in order to fulfill its statutory responsibilities. The FR 3076 is voluntary and the information collected by the FR 3076 is not considered to be confidential. Board of Governors of the Federal Reserve System, September 14, 2020. Michele Taylor Fennell, Assistant Secretary of the Board. [FR Doc. 2020–20507 Filed 9–16–20; 8:45 am] BILLING CODE 6210–01–P FEDERAL RESERVE SYSTEM Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB Board of Governors of the Federal Reserve System. AGENCY: PO 00000 Frm 00022 Fmt 4703 Sfmt 4703 The Board of Governors of the Federal Reserve System (Board) is adopting a proposal to extend for three years, with revision, the Market Risk Capital Rule (FR 4201; OMB No. 7100– 0314). The revisions are effective immediately. SUMMARY: FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance Officer—Nuha Elmaghrabi—Office of the Chief Data Officer, Board of Governors of the Federal Reserve System, Washington, DC 20551, (202) 452–3829. Office of Management and Budget (OMB) Desk Officer—Shagufta Ahmed— Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10235, 725 17th Street NW, Washington, DC 20503, or by fax to (202) 395–6974. A copy of the 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. These documents also are available on the Federal Reserve Board’s public website at https://www.federalreserve.gov/apps/ reportforms/review.aspx or may be requested from the agency clearance officer, whose name appears above. 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. Boardapproved collections of information are incorporated into the official OMB inventory of currently approved collections of information. Copies of the PRA Submission, supporting statements, and approved collection of information instrument(s) are placed into OMB’s public docket files. Final Approval Under OMB Delegated Authority of the Extension for Three Years, With Revision, of the Following Information Collection: Report title: Market Risk Capital Rule. Agency form number: FR 4201. OMB control number: 7100–0314. Effective Date: The revisions are effective immediately. Frequency: Annually, quarterly, and on occasion. Respondents: Bank holding companies (BHCs), savings and loan holding companies (SLHCs), intermediate holding companies (IHCs), and state member banks (SMBs). Estimated number of respondents: 37. Estimated average hours per response: Reporting, 1,088; Recordkeeping, 508; Disclosure, 28. E:\FR\FM\17SEN1.SGM 17SEN1 jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 85, No. 181 / Thursday, September 17, 2020 / Notices Estimated annual burden hours: Reporting, 1,088; Recordkeeping, 31,744; Disclosure, 2,812. General description of report: The market risk capital rule, which requires banking organizations to hold capital to cover their exposure to market risk, is an important component of the Board’s regulatory capital framework (12 CFR part 217; Regulation Q). The rule includes collections of information that permit the Board to monitor the market risk profile of Board-regulated banking organizations that have significant market risk and evaluate the impact of the market risk rule on those banking organizations.1 The collections of information provide current statistical data identifying market risk areas on which to focus onsite and offsite examinations. They also allow the Board to assess the levels and components of each reporting institution’s risk-based capital requirements for market risk and the adequacy of the institution’s capital under the market risk capital rule. These collections of information ensure capital adequacy of banking organizations according to their level of market risk and assist the Board in implementing and validating the market risk framework. There are no required reporting forms associated with this information collection. The market risk capital rule applies to any banking organization with aggregate trading assets and trading liabilities equal to (1) 10 percent or more of quarter-end total assets or (2) $1 billion or more.2 The Board may exclude a banking organization that meets these thresholds if the Board determines that the exclusion is appropriate based on the level of market risk of the banking organization and is consistent with safe and sound banking practices.3 The Board may further apply the market risk capital rule to any other banking organization if the Board deems it necessary or appropriate because of the level of market risk of the banking organization or to ensure safe and sound banking practices.4 There are several recordkeeping requirements outlined in the market risk capital rule. Subject banking organizations must adequately document all material aspects of their internal models; the management and valuation of their covered positions; their control, oversight, validation, and review processes and results; and their 1 For purposes of this notice, banking organizations include those listed in respondent section that are subject to the market risk rule. 2 See 12 CFR 217.201(b)(1). 3 See 12 CFR 217.201(b)(3). 4 See 12 CFR 217.201(b)(2). VerDate Sep<11>2014 17:37 Sep 16, 2020 Jkt 250001 internal assessments of capital adequacy. Subject banking organizations are also required to have clearly defined policies and procedures for determining which trading assets and trading liabilities are trading positions and which trading positions are correlation trading positions. Furthermore, subject banking organizations are required to have clearly defined trading and hedging strategies for trading positions. In addition, subject banking organizations must conduct and document an analysis of the risk characteristics of each securitization position prior to acquiring the position, considering structural features of the securitization that would materially impact the performance of the position; relevant information regarding the performance of underlying credit exposure(s); relevant market data of the securitization; and, for resecuritization positions, performance information on the underlying securitization exposure. On an ongoing basis (but no less frequently than quarterly), subject banking organizations must evaluate, review, and update as appropriate the analysis required for each securitization position. In order to comply with the reporting requirements of the market risk capital rule, subject banking organizations must obtain prior written approvals of the Board before (1) using any internal model to calculate risk-based capital requirements under subpart F, (2) including in its capital requirement for de minimis exposures, (3) making any material change to the policies and procedures outlined in the recordkeeping requirements, (4) including portfolios of equity positions in its incremental risk model, and (5) using the method specified in Section 217.209(a) to measure comprehensive risk for one or more portfolios of correlation trading positions. In order to comply with the disclosure requirements of the market risk capital rule, subject banking organizations must provide certain public quantitative disclosures and annual qualitative disclosures. Legal authorization and confidentiality: The FR 4201 is authorized pursuant to sections 9(6) and 11 of the Federal Reserve Act for SMBs (12 U.S.C. 324 and 248); pursuant to section 5 of the Bank Holding Company Act of 1956 (BHC Act) (12 U.S.C. 1844(c)) and, in some cases, section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DoddFrank Act) for BHCs (12 U.S.C. 5365); pursuant to section 5 of the BHC Act (12 U.S.C. 1844), in conjunction with section 8 of the International Banking PO 00000 Frm 00023 Fmt 4703 Sfmt 9990 58055 Act of 1978 (12 U.S.C. 3106), and section 165 of the Dodd-Frank Act for IHCs of foreign banking organizations; and pursuant to sections 10(b)(2) and (g) of the Home Owners’ Loan Act for SLHCs (12 U.S.C. 1467a(b)(2) and (g)). The FR 4201 is mandatory. The information collected pursuant to the FR 4201 is collected as part of the Board’s supervisory process, and therefore may be afforded confidential treatment pursuant to exemption 8 of the Freedom of Information Act (FOIA) (5 U.S.C. 552(b)(8)). In addition, individual respondents may request that certain data be afforded confidential treatment pursuant to exemption 4 of the FOIA, which exempts from disclosure ‘‘trade secrets and commercial or financial information obtained from a person [that is] privileged or confidential’’ (5 U.S.C. 552(b)(4)). Determinations of confidentiality based on exemption 4 of the FOIA would be made on a case-bycase basis. Current actions: On January 17, 2020, the Board published a notice in the Federal Register (85 FR 3049) requesting public comment for 60 days on the extension, with revision, of the Market Risk Capital Rule. In August 2019, the Board extended the FR 4201 for three years, with revision.5 The revisions included removing references to provisions in the market risk capital rule concerning securitizations. This revision was in error, as the market risk capital rule contains a recordkeeping requirement concerning securitizations, which is described above. Therefore, the Board proposed to reinstate this recordkeeping requirement. Additionally, the Board proposed to revise the FR 4201 to account for the general recordkeeping requirement in section 217.203(f) of the market risk capital rule, which was not previously accounted for. The comment period for this notice expired on March 17, 2020. The Board did not receive any comments. The revisions will be implemented as proposed. Board of Governors of the Federal Reserve System, September 14, 2020. Michele Taylor Fennell, Assistant Secretary of the Board. [FR Doc. 2020–20509 Filed 9–16–20; 8:45 am] BILLING CODE 6210–01–P 5 84 E:\FR\FM\17SEN1.SGM FR 39843. 17SEN1

Agencies

[Federal Register Volume 85, Number 181 (Thursday, September 17, 2020)]
[Notices]
[Pages 58054-58055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20509]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is adopting a proposal to extend for three years, with revision, the 
Market Risk Capital Rule (FR 4201; OMB No. 7100-0314). The revisions 
are effective immediately.

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829.
    Office of Management and Budget (OMB) Desk Officer--Shagufta 
Ahmed--Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Room 10235, 725 
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.
    A copy of the 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. 
These documents also are available on the Federal Reserve Board's 
public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested from the agency clearance officer, 
whose name appears above.

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. Board-
approved collections of information are incorporated into the official 
OMB inventory of currently approved collections of information. Copies 
of the PRA Submission, supporting statements, and approved collection 
of information instrument(s) are placed into OMB's public docket files.
    Final Approval Under OMB Delegated Authority of the Extension for 
Three Years, With Revision, of the Following Information Collection:
    Report title: Market Risk Capital Rule.
    Agency form number: FR 4201.
    OMB control number: 7100-0314.
    Effective Date: The revisions are effective immediately.
    Frequency: Annually, quarterly, and on occasion.
    Respondents: Bank holding companies (BHCs), savings and loan 
holding companies (SLHCs), intermediate holding companies (IHCs), and 
state member banks (SMBs).
    Estimated number of respondents: 37.
    Estimated average hours per response: Reporting, 1,088; 
Recordkeeping, 508; Disclosure, 28.

[[Page 58055]]

    Estimated annual burden hours: Reporting, 1,088; Recordkeeping, 
31,744; Disclosure, 2,812.
    General description of report: The market risk capital rule, which 
requires banking organizations to hold capital to cover their exposure 
to market risk, is an important component of the Board's regulatory 
capital framework (12 CFR part 217; Regulation Q). The rule includes 
collections of information that permit the Board to monitor the market 
risk profile of Board-regulated banking organizations that have 
significant market risk and evaluate the impact of the market risk rule 
on those banking organizations.\1\ The collections of information 
provide current statistical data identifying market risk areas on which 
to focus onsite and offsite examinations. They also allow the Board to 
assess the levels and components of each reporting institution's risk-
based capital requirements for market risk and the adequacy of the 
institution's capital under the market risk capital rule. These 
collections of information ensure capital adequacy of banking 
organizations according to their level of market risk and assist the 
Board in implementing and validating the market risk framework. There 
are no required reporting forms associated with this information 
collection.
---------------------------------------------------------------------------

    \1\ For purposes of this notice, banking organizations include 
those listed in respondent section that are subject to the market 
risk rule.
---------------------------------------------------------------------------

    The market risk capital rule applies to any banking organization 
with aggregate trading assets and trading liabilities equal to (1) 10 
percent or more of quarter-end total assets or (2) $1 billion or 
more.\2\ The Board may exclude a banking organization that meets these 
thresholds if the Board determines that the exclusion is appropriate 
based on the level of market risk of the banking organization and is 
consistent with safe and sound banking practices.\3\ The Board may 
further apply the market risk capital rule to any other banking 
organization if the Board deems it necessary or appropriate because of 
the level of market risk of the banking organization or to ensure safe 
and sound banking practices.\4\ There are several recordkeeping 
requirements outlined in the market risk capital rule. Subject banking 
organizations must adequately document all material aspects of their 
internal models; the management and valuation of their covered 
positions; their control, oversight, validation, and review processes 
and results; and their internal assessments of capital adequacy. 
Subject banking organizations are also required to have clearly defined 
policies and procedures for determining which trading assets and 
trading liabilities are trading positions and which trading positions 
are correlation trading positions. Furthermore, subject banking 
organizations are required to have clearly defined trading and hedging 
strategies for trading positions.
---------------------------------------------------------------------------

    \2\ See 12 CFR 217.201(b)(1).
    \3\ See 12 CFR 217.201(b)(3).
    \4\ See 12 CFR 217.201(b)(2).
---------------------------------------------------------------------------

    In addition, subject banking organizations must conduct and 
document an analysis of the risk characteristics of each securitization 
position prior to acquiring the position, considering structural 
features of the securitization that would materially impact the 
performance of the position; relevant information regarding the 
performance of underlying credit exposure(s); relevant market data of 
the securitization; and, for resecuritization positions, performance 
information on the underlying securitization exposure. On an ongoing 
basis (but no less frequently than quarterly), subject banking 
organizations must evaluate, review, and update as appropriate the 
analysis required for each securitization position.
    In order to comply with the reporting requirements of the market 
risk capital rule, subject banking organizations must obtain prior 
written approvals of the Board before (1) using any internal model to 
calculate risk-based capital requirements under subpart F, (2) 
including in its capital requirement for de minimis exposures, (3) 
making any material change to the policies and procedures outlined in 
the recordkeeping requirements, (4) including portfolios of equity 
positions in its incremental risk model, and (5) using the method 
specified in Section 217.209(a) to measure comprehensive risk for one 
or more portfolios of correlation trading positions.
    In order to comply with the disclosure requirements of the market 
risk capital rule, subject banking organizations must provide certain 
public quantitative disclosures and annual qualitative disclosures.
    Legal authorization and confidentiality: The FR 4201 is authorized 
pursuant to sections 9(6) and 11 of the Federal Reserve Act for SMBs 
(12 U.S.C. 324 and 248); pursuant to section 5 of the Bank Holding 
Company Act of 1956 (BHC Act) (12 U.S.C. 1844(c)) and, in some cases, 
section 165 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act) for BHCs (12 U.S.C. 5365); pursuant to 
section 5 of the BHC Act (12 U.S.C. 1844), in conjunction with section 
8 of the International Banking Act of 1978 (12 U.S.C. 3106), and 
section 165 of the Dodd-Frank Act for IHCs of foreign banking 
organizations; and pursuant to sections 10(b)(2) and (g) of the Home 
Owners' Loan Act for SLHCs (12 U.S.C. 1467a(b)(2) and (g)). The FR 4201 
is mandatory.
    The information collected pursuant to the FR 4201 is collected as 
part of the Board's supervisory process, and therefore may be afforded 
confidential treatment pursuant to exemption 8 of the Freedom of 
Information Act (FOIA) (5 U.S.C. 552(b)(8)). In addition, individual 
respondents may request that certain data be afforded confidential 
treatment pursuant to exemption 4 of the FOIA, which exempts from 
disclosure ``trade secrets and commercial or financial information 
obtained from a person [that is] privileged or confidential'' (5 U.S.C. 
552(b)(4)). Determinations of confidentiality based on exemption 4 of 
the FOIA would be made on a case-by-case basis.
    Current actions: On January 17, 2020, the Board published a notice 
in the Federal Register (85 FR 3049) requesting public comment for 60 
days on the extension, with revision, of the Market Risk Capital Rule.
    In August 2019, the Board extended the FR 4201 for three years, 
with revision.\5\ The revisions included removing references to 
provisions in the market risk capital rule concerning securitizations. 
This revision was in error, as the market risk capital rule contains a 
recordkeeping requirement concerning securitizations, which is 
described above. Therefore, the Board proposed to reinstate this 
recordkeeping requirement. Additionally, the Board proposed to revise 
the FR 4201 to account for the general recordkeeping requirement in 
section 217.203(f) of the market risk capital rule, which was not 
previously accounted for.
---------------------------------------------------------------------------

    \5\ 84 FR 39843.
---------------------------------------------------------------------------

    The comment period for this notice expired on March 17, 2020. The 
Board did not receive any comments. The revisions will be implemented 
as proposed.

    Board of Governors of the Federal Reserve System, September 14, 
2020.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2020-20509 Filed 9-16-20; 8:45 am]
BILLING CODE 6210-01-P