Regulation YY: Stress Test Rules; Correction, 22843-22844 [2021-09011]

Download as PDF Federal Register / Vol. 86, No. 82 / Friday, April 30, 2021 / Rules and Regulations f. In section 8, in the introductory text, remove the phrase ‘‘Northern Potato Crop Provisions’’ and add ‘‘Northern Potato Crop Insurance Provisions’’ in its place; ■ g. In section 9: ■ i. Remove the phrases ‘‘Northern Potato Crop Provisions’’ and add ‘‘Northern Potato Crop Insurance Provisions’’ in its place in all places it appears; ■ ii. Remove the phrases ‘‘Northern Potato Crop Insurance Policy’’ and add ‘‘Northern Potato Crop Insurance Provisions’’ in its place in all places it appears. The revisions read as follows: ■ § 457.145 Northern potato crop insurance—certified seed endorsement. jbell on DSKJLSW7X2PROD with RULES * * * * * 1. The additional premium amount for this coverage will be determined by multiplying the number of your insured planted acres of certified seed potatoes by the premium rate for this Endorsement contained in the actuarial documents. In return for payment of the additional premium designated in the actuarial documents, this Endorsement is attached to and made part of your Northern Potato Crop Insurance Provisions subject to the terms and conditions described herein. In accordance with section 8, since your insurance period is not extended in this Endorsement, any additional premium paid for coverage under the Northern Potato Crop Insurance—Storage Coverage Endorsement will not apply to the additional coverage provided under the terms of this Endorsement. In the event of a conflict between the Northern Potato Crop Insurance Provisions and this Endorsement, this Endorsement will control. * * * * * ■ 5. Amend § 457.146 as follows: ■ a. In the introductory text, remove ‘‘2008’’ an add ‘‘2022’’ in its place; ■ b. Revise section 1; ■ c. In section 3, remove the phrase ‘‘Northern Potato Crop Provisions’’ and add ‘‘Northern Potato Crop Insurance Provisions’’ in its place; ■ d. In section 4, remove the phrase ‘‘Northern Potato Crop Provisions’’ and add ‘‘Northern Potato Crop Insurance Provisions’’ in its place; ■ e. In section 5: ■ i. In the introductory text, remove the phrase ‘‘Northern Potato Crop Provisions’’ and add ‘‘Northern Potato Crop Insurance Provisions’’ in its place; ■ ii. In paragraph (a)(1), remove the phrase ‘‘Northern Potato Crop Provisions’’ and add ‘‘Northern Potato Crop Insurance Provisions’’ in its place; VerDate Sep<11>2014 16:13 Apr 29, 2021 Jkt 253001 iii. In paragraph (a)(2), remove the phrases ‘‘Northern Potato Crop Insurance Quality Endorsement’’ and add ‘‘Northern Potato Crop Insurance— Quality Endorsement’’ in its place; and ■ iv. In paragraph (a)(3) introductory text, remove the phrase ‘‘Northern Potato Processing Quality Endorsement’’ and add ‘‘Northern Potato Crop Insurance—Processing Quality Endorsement’’ in its place; The revision reads as follows: ■ § 457.146 Northern potato crop insurance—storage coverage endorsement. * * * * * 1. The additional premium amount for this coverage will be determined by multiplying the number of your insured planted acres of potatoes by the premium rate for this Endorsement contained in the actuarial documents. In return for payment of the required additional premium as contained in the actuarial documents, this Endorsement is attached to and made part of your Northern Potato Crop Insurance Provisions subject to the terms and conditions described herein. In the event of a conflict between the Northern Potato Crop Insurance Provisions and this Endorsement, this Endorsement will control. * * * * * Richard H. Flournoy, Acting Manager, Federal Crop Insurance Corporation. [FR Doc. 2021–08955 Filed 4–29–21; 8:45 am] BILLING CODE 3410–08–P FEDERAL RESERVE SYSTEM 12 CFR Part 252 [Docket R–1603] RIN 7100–AF02 Regulation YY: Stress Test Rules; Correction Board of Governors of the Federal Reserve System (Board). ACTION: Final rule; correcting amendment. AGENCY: The Board is issuing this final rule to correct an error in its Regulation YY (Enhanced Prudential Standards) relating to the company-run stress test requirements for certain large banking organizations. SUMMARY: This final rule is effective April 30, 2021. FOR FURTHER INFORMATION CONTACT: Benjamin McDonough, Associate General Counsel, (202) 452–2036; Julie Anthony, Senior Counsel, (202) 475– DATES: PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 22843 6682; Asad Kudiya, Senior Counsel, (202) 475–6358; Jonah Kind, Counsel, 202–452–2045, or Jasmin Keskinen, Attorney, (202) 475–6650, Legal Division, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 20551. Users of Telecommunications Device for the Deaf (TDD) only, call (202) 263–4869. SUPPLEMENTARY INFORMATION: The Board is making a technical correction to a provision of its rules regarding company-run stress test requirements for certain U.S. bank holding companies, certain U.S. intermediate holding companies of foreign banking organizations, and nonbank financial companies supervised by the Board.1 In a final rule published in March 2020 (SCB final rule),2 the Board adopted a proposal 3 (SCB proposal) to amend its capital rule, capital plan rule, and stress testing rules 4 in order to integrate the capital rule with the Board’s Comprehensive Capital Analysis and Review by introducing the stress capital buffer (SCB) requirement.5 Also in the SCB final rule, the Board amended its stress testing rules to incorporate a definition of ‘‘significant trading activity’’ into the Board’s company-run stress test requirements in order to increase transparency regarding the application of an additional trading and counterparty scenario component. In doing so, the Board inadvertently deleted from these rules language regarding the timing of certain aspects of the trading and counterparty component of the company-run stress test. The deletion of this language did not reflect the amendments to the rule described in the Supplementary Information section of the SCB final rule and was not included or described in the SCB proposal. This final rule corrects the Board’s stress testing rules by restoring the inadvertently deleted regulatory text. Specifically, the technical correction revises these rules by adding to section 252.54(b)(2)(i) of Regulation YY language indicating that the data used in the trading and counterparty component of the company-run stress test must be as of a date selected by the Board between October 1 of the previous calendar year and March 1 of the 1 12 CFR 252.54(b)(2)(i). Q, Y, and YY: Regulatory Capital, Capital Plan, and Stress Test Rules, 85 FR 15576 (March 18, 2020). The SCB final rule took effect on May 18, 2020. 3 80 FR 18160 (April 25, 2018). 4 12 CFR part 217 (Regulation Q); 12 CFR part 225 (Regulation Y); and 12 CFR part 252 (Regulation YY), respectively. 5 85 FR 15576 (March 18, 2020). 2 Regulations E:\FR\FM\30APR1.SGM 30APR1 22844 Federal Register / Vol. 86, No. 82 / Friday, April 30, 2021 / Rules and Regulations calendar year in which the stress test is performed pursuant to this section, and that the Board will communicate the asof date and a description of the component to the company no later than March 1 of the calendar year in which the stress test is performed. Administrative Law jbell on DSKJLSW7X2PROD with RULES A. Administrative Procedure Act The Board is issuing this final rule without prior notice and the opportunity for public comment and the 30-day delayed effective date ordinarily prescribed by the Administrative Procedure Act (APA).6 Pursuant to section 553(b)(B) of the APA, general notice and the opportunity for public comment are not required with respect to a rulemaking when an ‘‘agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.’’ 7 The Board believes that the public interest is best served by implementing the final rule as soon as possible. Public comment is unnecessary, as the SCB final rule was previously issued for comment, and the technical edits discussed here merely correct drafting errors in the SCB final rule. The corrections made by this final rule will reduce ambiguity and ensure that banking organizations implement the company-run stress test in a consistent manner and as described in the Supplementary Information section of the SCB final rule and other final rules adopted by the Board. The APA also requires a 30-day delayed effective date, except for (1) substantive rules which grant or recognize an exemption or relieve a restriction; (2) interpretative rules and statements of policy; or (3) as otherwise provided by the agency for good cause.8 The Board finds good cause to publish the final rule correction with an immediate effective date for the same reasons set forth above under the discussion of section 553(b)(B) of the APA. B. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3521) (PRA) states that no agency may conduct or sponsor, nor is the respondent required to respond to, an information collection unless it displays a currently valid OMB control number. This final rule does not contain any collections of information, and 65 U.S.C. 553. U.S.C. 553(b)(B). 8 5 U.S.C. 553(d). 75 VerDate Sep<11>2014 19:25 Apr 29, 2021 Jkt 253001 therefore no submissions will be made by the Board to OMB in connection with this final rule. 1831w, 1835, 1844(b), 1844(c), 3101 et seq., 3101 note, 3904, 3906–3909, 4808, 5361, 5362, 5365, 5366, 5367, 5368, 5371. C. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) 9 requires an agency to consider whether the rules it proposes will have a significant economic impact on a substantial number of small entities.10 The RFA applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to 5 U.S.C. 553(b). As discussed previously, consistent with section 553(b)(B) of the APA, the Board has determined for good cause that general notice and opportunity for public comment is unnecessary and contrary to the public’s interest, and therefore the Board is not issuing a notice of proposed rulemaking. Accordingly, the Board has concluded that the RFA’s requirements relating to an initial and final regulatory flexibility analysis do not apply. Subpart F—Company-Run Stress Test Requirements for Certain U.S. Bank Holding Companies and Nonbank Financial Companies Supervised by the Board D. Plain Language Section 722 of the Gramm-LeachBliley Act 11 requires the Federal banking agencies to use ‘‘plain language’’ in all proposed and final rules published after January 1, 2000. In light of this requirement, the Board has sought to present the final rule in a simple and straightforward manner. List of Subjects in 12 CFR Part 252 Administrative practice and procedure, Banks, Banking, Capital planning, Federal Reserve System, Holding companies, Reporting and recordkeeping requirements, Securities, Stress testing. 2. In § 252.54 by revise paragraph (b)(2)(i) introductory text to read as follows: ■ § 252.54 Stress test. * * * * * (b) * * * (2) * * * (i) The Board may require a covered company with significant trading activity to include a trading and counterparty component in its severely adverse scenario in the stress test required by this section. The data used in this component must be as of a date selected by the Board between October 1 of the previous calendar year and March 1 of the calendar year in which the stress test is performed pursuant to this section, and the Board will communicate the as-of date and a description of the component to the company no later than March 1 of the calendar year in which the stress test is performed pursuant to this section. A covered company has significant trading activity if it has: * * * * * By order of the Board of Governors of the Federal Reserve System. Ann Misback, Secretary of the Board. [FR Doc. 2021–09011 Filed 4–29–21; 8:45 am] BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM BILLING CODE P 12 CFR Chapter II BUREAU OF CONSUMER FINANCIAL PROTECTION Authority and Issuance For the reasons set forth in the preamble, chapter II of title 12 of the Code of Federal Regulations is amended as follows: PART 252—ENHANCED PRUDENTIAL STANDARDS (REGULATION YY) 1. The authority citation for part 252 continues to read as follows: ■ Authority: 12 U.S.C. 321–338a, 481–486, 1467a, 1818, 1828, 1831n, 1831o, 1831p–1, 95 U.S.C. 601 et seq. regulations issued by the Small Business Administration, a small entity includes a depository institution, bank holding company, or savings and loan holding company with total assets of $600 million or less and trust companies with average annual receipts of $41.5 million or less. See 13 CFR 121.201. 11 12 U.S.C. 4809. 10 Under PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 12 CFR Part 1026 [Docket No. CFPB–2021–0003] RIN 3170–AA98 Qualified Mortgage Definition Under the Truth in Lending Act (Regulation Z): General QM Loan Definition; Delay of Mandatory Compliance Date Bureau of Consumer Financial Protection. ACTION: Final rule; official interpretation. AGENCY: The Bureau of Consumer Financial Protection (Bureau) is issuing this final rule to delay until October 1, 2022 the mandatory compliance date for the final rule titled Qualified Mortgage Definition under the Truth in Lending SUMMARY: E:\FR\FM\30APR1.SGM 30APR1

Agencies

[Federal Register Volume 86, Number 82 (Friday, April 30, 2021)]
[Rules and Regulations]
[Pages 22843-22844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09011]


=======================================================================
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FEDERAL RESERVE SYSTEM

12 CFR Part 252

[Docket R-1603]
RIN 7100-AF02


Regulation YY: Stress Test Rules; Correction

AGENCY: Board of Governors of the Federal Reserve System (Board).

ACTION: Final rule; correcting amendment.

-----------------------------------------------------------------------

SUMMARY: The Board is issuing this final rule to correct an error in 
its Regulation YY (Enhanced Prudential Standards) relating to the 
company-run stress test requirements for certain large banking 
organizations.

DATES: This final rule is effective April 30, 2021.

FOR FURTHER INFORMATION CONTACT: Benjamin McDonough, Associate General 
Counsel, (202) 452-2036; Julie Anthony, Senior Counsel, (202) 475-6682; 
Asad Kudiya, Senior Counsel, (202) 475-6358; Jonah Kind, Counsel, 202-
452-2045, or Jasmin Keskinen, Attorney, (202) 475-6650, Legal Division, 
Board of Governors of the Federal Reserve System, 20th Street and 
Constitution Avenue NW, Washington, DC 20551. Users of 
Telecommunications Device for the Deaf (TDD) only, call (202) 263-4869.

SUPPLEMENTARY INFORMATION: The Board is making a technical correction 
to a provision of its rules regarding company-run stress test 
requirements for certain U.S. bank holding companies, certain U.S. 
intermediate holding companies of foreign banking organizations, and 
nonbank financial companies supervised by the Board.\1\ In a final rule 
published in March 2020 (SCB final rule),\2\ the Board adopted a 
proposal \3\ (SCB proposal) to amend its capital rule, capital plan 
rule, and stress testing rules \4\ in order to integrate the capital 
rule with the Board's Comprehensive Capital Analysis and Review by 
introducing the stress capital buffer (SCB) requirement.\5\ Also in the 
SCB final rule, the Board amended its stress testing rules to 
incorporate a definition of ``significant trading activity'' into the 
Board's company-run stress test requirements in order to increase 
transparency regarding the application of an additional trading and 
counterparty scenario component. In doing so, the Board inadvertently 
deleted from these rules language regarding the timing of certain 
aspects of the trading and counterparty component of the company-run 
stress test. The deletion of this language did not reflect the 
amendments to the rule described in the Supplementary Information 
section of the SCB final rule and was not included or described in the 
SCB proposal.
---------------------------------------------------------------------------

    \1\ 12 CFR 252.54(b)(2)(i).
    \2\ Regulations Q, Y, and YY: Regulatory Capital, Capital Plan, 
and Stress Test Rules, 85 FR 15576 (March 18, 2020). The SCB final 
rule took effect on May 18, 2020.
    \3\ 80 FR 18160 (April 25, 2018).
    \4\ 12 CFR part 217 (Regulation Q); 12 CFR part 225 (Regulation 
Y); and 12 CFR part 252 (Regulation YY), respectively.
    \5\ 85 FR 15576 (March 18, 2020).
---------------------------------------------------------------------------

    This final rule corrects the Board's stress testing rules by 
restoring the inadvertently deleted regulatory text. Specifically, the 
technical correction revises these rules by adding to section 
252.54(b)(2)(i) of Regulation YY language indicating that the data used 
in the trading and counterparty component of the company-run stress 
test must be as of a date selected by the Board between October 1 of 
the previous calendar year and March 1 of the

[[Page 22844]]

calendar year in which the stress test is performed pursuant to this 
section, and that the Board will communicate the as-of date and a 
description of the component to the company no later than March 1 of 
the calendar year in which the stress test is performed.

Administrative Law

A. Administrative Procedure Act

    The Board is issuing this final rule without prior notice and the 
opportunity for public comment and the 30-day delayed effective date 
ordinarily prescribed by the Administrative Procedure Act (APA).\6\ 
Pursuant to section 553(b)(B) of the APA, general notice and the 
opportunity for public comment are not required with respect to a 
rulemaking when an ``agency for good cause finds (and incorporates the 
finding and a brief statement of reasons therefor in the rules issued) 
that notice and public procedure thereon are impracticable, 
unnecessary, or contrary to the public interest.'' \7\
---------------------------------------------------------------------------

    \6\ 5 U.S.C. 553.
    \7\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------

    The Board believes that the public interest is best served by 
implementing the final rule as soon as possible. Public comment is 
unnecessary, as the SCB final rule was previously issued for comment, 
and the technical edits discussed here merely correct drafting errors 
in the SCB final rule.
    The corrections made by this final rule will reduce ambiguity and 
ensure that banking organizations implement the company-run stress test 
in a consistent manner and as described in the Supplementary 
Information section of the SCB final rule and other final rules adopted 
by the Board.
    The APA also requires a 30-day delayed effective date, except for 
(1) substantive rules which grant or recognize an exemption or relieve 
a restriction; (2) interpretative rules and statements of policy; or 
(3) as otherwise provided by the agency for good cause.\8\ The Board 
finds good cause to publish the final rule correction with an immediate 
effective date for the same reasons set forth above under the 
discussion of section 553(b)(B) of the APA.
---------------------------------------------------------------------------

    \8\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------

B. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) (PRA) 
states that no agency may conduct or sponsor, nor is the respondent 
required to respond to, an information collection unless it displays a 
currently valid OMB control number. This final rule does not contain 
any collections of information, and therefore no submissions will be 
made by the Board to OMB in connection with this final rule.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) \9\ requires an agency to 
consider whether the rules it proposes will have a significant economic 
impact on a substantial number of small entities.\10\ The RFA applies 
only to rules for which an agency publishes a general notice of 
proposed rulemaking pursuant to 5 U.S.C. 553(b). As discussed 
previously, consistent with section 553(b)(B) of the APA, the Board has 
determined for good cause that general notice and opportunity for 
public comment is unnecessary and contrary to the public's interest, 
and therefore the Board is not issuing a notice of proposed rulemaking. 
Accordingly, the Board has concluded that the RFA's requirements 
relating to an initial and final regulatory flexibility analysis do not 
apply.
---------------------------------------------------------------------------

    \9\ 5 U.S.C. 601 et seq.
    \10\ Under regulations issued by the Small Business 
Administration, a small entity includes a depository institution, 
bank holding company, or savings and loan holding company with total 
assets of $600 million or less and trust companies with average 
annual receipts of $41.5 million or less. See 13 CFR 121.201.
---------------------------------------------------------------------------

D. Plain Language

    Section 722 of the Gramm-Leach-Bliley Act \11\ requires the Federal 
banking agencies to use ``plain language'' in all proposed and final 
rules published after January 1, 2000. In light of this requirement, 
the Board has sought to present the final rule in a simple and 
straightforward manner.
---------------------------------------------------------------------------

    \11\ 12 U.S.C. 4809.
---------------------------------------------------------------------------

List of Subjects in 12 CFR Part 252

    Administrative practice and procedure, Banks, Banking, Capital 
planning, Federal Reserve System, Holding companies, Reporting and 
recordkeeping requirements, Securities, Stress testing.

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

12 CFR Chapter II

Authority and Issuance

    For the reasons set forth in the preamble, chapter II of title 12 
of the Code of Federal Regulations is amended as follows:

PART 252--ENHANCED PRUDENTIAL STANDARDS (REGULATION YY)

0
1. The authority citation for part 252 continues to read as follows:

    Authority:  12 U.S.C. 321-338a, 481-486, 1467a, 1818, 1828, 
1831n, 1831o, 1831p-1, 1831w, 1835, 1844(b), 1844(c), 3101 et seq., 
3101 note, 3904, 3906-3909, 4808, 5361, 5362, 5365, 5366, 5367, 
5368, 5371.

Subpart F--Company-Run Stress Test Requirements for Certain U.S. 
Bank Holding Companies and Nonbank Financial Companies Supervised 
by the Board

0
2. In Sec.  252.54 by revise paragraph (b)(2)(i) introductory text to 
read as follows:


Sec.  252.54   Stress test.

* * * * *
    (b) * * *
    (2) * * *
    (i) The Board may require a covered company with significant 
trading activity to include a trading and counterparty component in its 
severely adverse scenario in the stress test required by this section. 
The data used in this component must be as of a date selected by the 
Board between October 1 of the previous calendar year and March 1 of 
the calendar year in which the stress test is performed pursuant to 
this section, and the Board will communicate the as-of date and a 
description of the component to the company no later than March 1 of 
the calendar year in which the stress test is performed pursuant to 
this section. A covered company has significant trading activity if it 
has:
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System.
Ann Misback,
Secretary of the Board.
[FR Doc. 2021-09011 Filed 4-29-21; 8:45 am]
BILLING CODE P
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