Announcement of Financial Sector Liabilities, 38054-38055 [2023-12389]

Download as PDF 38054 Federal Register / Vol. 88, No. 112 / Monday, June 12, 2023 / Notices Stillwell Value LLC; a group acting in concert, to acquire additional voting shares of Provident Bancorp, Inc., and thereby indirectly acquire voting shares of BankProv, both of Amesbury, Massachusetts. B. Federal Reserve Bank of St. Louis (Holly A. Rieser, Senior Manager), P.O. Box 442, St. Louis, Missouri 63166– 2034. Comments can also be sent electronically to Comments.applications@stls.frb.org: 1. Austin F. Clark, Imperial, Missouri; Dillon C. Clark, Greta J. Fleming, Ellen C. Fleming, and Olivia G. Fleming, all of Litchfield, Illinois; to join the Fleming Family Control Group, a group acting in concert, to retain voting shares of Litchfield Bancshares Company and thereby indirectly retain voting shares of The Litchfield National Bank, both of Litchfield, Illinois. Board of Governors of the Federal Reserve System. Michele Taylor Fennell, Deputy Associate Secretary of the Board. Aggregate Financial Sector Liabilities ‘‘Aggregate financial sector liabilities’’ is equal to $23,694,977,610,000.3 This measure is in effect from July 1, 2023 through June 30, 2024. The Board’s Regulation XX prohibits a merger or acquisition that would result in a financial company that controls more than 10 percent of the aggregate consolidated liabilities of all financial companies (‘‘aggregate financial sector liabilities’’).1 Specifically, an insured depository institution, a bank holding company, a savings and loan holding company, a foreign banking organization, any other company that controls an insured depository institution, and a nonbank financial company designated by the Financial Stability Oversight Council (each, a ‘‘financial company’’) is prohibited from merging or consolidating with, acquiring all or substantially all of the assets of, or acquiring control of, another company if the resulting company’s consolidated liabilities would exceed 10 percent of the aggregate financial sector liabilities.2 Under Regulation XX, the Federal Reserve will publish the aggregate financial sector liabilities by July 1 of Calculation Methodology The aggregate financial sector liabilities measure equals the average of the year-end financial sector liabilities figure (as of December 31) of each of the preceding two calendar years. The yearend financial sector liabilities figure equals the sum of the total consolidated liabilities of all top-tier U.S. financial companies and the U.S. liabilities of all top-tier foreign financial companies, calculated using the applicable methodology for each financial company, as set forth in Regulation XX and summarized below. Consolidated liabilities of a U.S. financial company that was subject to consolidated risk-based capital rules as of December 31 of the year being measured, equal the difference between the U.S. financial company’s riskweighted assets (as adjusted upward to reflect amounts that are deducted from regulatory capital elements pursuant to the Federal banking agencies’ risk-based capital rules) and total regulatory capital, as calculated under the applicable risk-based capital rules. Companies in this category include (with certain exceptions listed below) bank holding companies, savings and loan holding companies, and insured depository institutions. The Federal Reserve used information collected on the Consolidated Financial Statements for Holding Companies (‘‘FR Y–9C’’) 1 Regulation XX implements section 622 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. See 12 U.S.C. 1852. 2 12 U.S.C. 1852(a)(2), (b); 12 CFR 251.3. 3 This number reflects the average of the financial sector liabilities figure for the years ending December 31, 2021 ($23,469,486,089,000) and December 31, 2022 ($23,920,469,131,000). [FR Doc. 2023–12385 Filed 6–9–23; 8:45 am] BILLING CODE P FEDERAL RESERVE SYSTEM [Docket No. OP–1808] Announcement of Financial Sector Liabilities ddrumheller on DSK120RN23PROD with NOTICES1 each year. Aggregate financial sector liabilities are equal to the average of the year-end financial sector liabilities figure (as of December 31) of each of the preceding two calendar years. FOR FURTHER INFORMATION CONTACT: Lesley Chao, Lead Financial Institution Policy Analyst, (202) 974–7063; Shooka Saket, Financial Institution Policy Analyst, (202) 452–3869; Matthew Suntag, Senior Counsel, (202) 452–3694; Laura Bain, Senior Counsel, (202) 736– 5546; for users of telephone systems via text telephone (TTY) or any TTY-based Telecommunications Relay Services (TRS), please call 711 from any telephone, anywhere in the United States; Board of Governors of the Federal Reserve System, 20th and C Streets NW, Washington, DC 20551. VerDate Sep<11>2014 17:39 Jun 09, 2023 Jkt 259001 PO 00000 Frm 00040 Fmt 4703 Sfmt 4703 and the Bank Consolidated Reports of Condition and Income (‘‘Call Report’’) to calculate liabilities of these institutions. Consolidated liabilities of a U.S. financial company not subject to consolidated risk-based capital rules as of December 31 of the year being measured, equal liabilities calculated in accordance with applicable accounting standards. Companies in this category include nonbank financial companies supervised by the Board, bank holding companies and savings and loan holding companies subject to the Federal Reserve’s Small Bank Holding Company Policy Statement, savings and loan holding companies substantially engaged in insurance underwriting or commercial activities, and U.S. companies that control insured depository institutions but are not bank holding companies or savings and loan holding companies. ‘‘Applicable accounting standards’’ is defined as Generally Accepted Accounting Principles (‘‘GAAP’’), or such other accounting standard or method of estimation that the Board determines is appropriate.4 The Federal Reserve used information collected on the FR Y–9C, the Parent Company Only Financial Statements for Small Holding Companies (‘‘FR Y–9SP’’), and the Financial Company Report of Consolidated Liabilities (‘‘FR XX–1’’) to calculate liabilities of these institutions. Under Regulation XX, liabilities of a foreign banking organization’s U.S. operations are calculated using the riskweighted asset methodology for subsidiaries subject to the risk-based capital rule, plus the assets of all branches, agencies, and nonbank subsidiaries, calculated in accordance with applicable accounting standards. 4 A financial company may request to use an accounting standard or method of estimation other than GAAP if it does not calculate its total consolidated assets or liabilities under GAAP for any regulatory purpose (including compliance with applicable securities laws). 12 CFR 251.3(e). In previous years, the Board received and approved requests from eleven financial companies to use an accounting standard or method of estimation other than GAAP to calculate liabilities. Ten of the companies were insurance companies that reported financial information under Statutory Accounting Principles (‘‘SAP’’), and one was a foreign company that controlled a U.S. industrial loan company that reported financial information under International Financial Reporting Standards (‘‘IFRS’’). For the insurance companies, the Board approved a method of estimation that was based on line items from SAP-based reports, with adjustments to reflect certain differences in accounting treatment between GAAP and SAP. For the foreign company, the Board approved the use of IFRS. Such companies that continue to be subject to Regulation XX continue to use the previously approved methods. The Board did not receive any new requests this year. E:\FR\FM\12JNN1.SGM 12JNN1 Federal Register / Vol. 88, No. 112 / Monday, June 12, 2023 / Notices Liabilities attributable to the U.S. operations of a foreign financial company that is not a foreign banking organization are calculated in a similar manner to the method described for foreign banking organizations, and liabilities of a U.S. subsidiary not subject to the risk-based capital rule are calculated based on the U.S. subsidiary’s liabilities under applicable accounting standards. The Federal Reserve used information collected on the Capital and Asset Report for Foreign Banking Organizations (‘‘FR Y–7Q’’), the FR Y–9C, and the FR XX–1 to calculate liabilities of these institutions. By order of the Board of Governors of the Federal Reserve System, acting through the Director of Supervision and Regulation under delegated authority. Ann E. Misback, Secretary of the Board. [FR Doc. 2023–12389 Filed 6–9–23; 8:45 am] BILLING CODE P DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Disease Control and Prevention Opportunity To Collaborate in the Evaluation of Serologic and Nucleic Acid Tests for Detecting HIV and Nucleic Acid Tests for Quantifying HIV Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS). ACTION: General notice. AGENCY: The Centers for Disease Control and Prevention (CDC), within the Department of Health and Human Services (HHS), announces an opportunity for industry and the public to collaborate on a project to evaluate nucleic acid and serologic tests. CDC is interested in evaluating serologic and nucleic acid tests that can be used to aid in the diagnosis of HIV–1 infection, including serologic tests that can secondarily differentiate recent infection, and nucleic acid tests for the quantitation or semi-quantitation of HIV RNA. Tests of interest include those that use whole blood, serum, plasma, or dried blood spots. Performance will be evaluated relative to Food and Drug Administration (FDA)-approved qualitative and quantitative nucleic acid tests as well as serologic immunoassays. More than one collaborator may be selected. ddrumheller on DSK120RN23PROD with NOTICES1 SUMMARY: Letters of interest must be received on or before Friday, September 15, 2023. Formal proposals must be DATES: VerDate Sep<11>2014 17:39 Jun 09, 2023 Jkt 259001 received on or before Friday, November 10, 2023. ADDRESSES: Send Letters of Interest and Formal Proposals to Division of HIV Prevention, National Center for HIV, Viral Hepatitis, STD, and TB Prevention, Centers for Disease Control and Prevention, 1600 Clifton Road NE, Mailstop H18–2, Atlanta, Georgia 30329. Attn: HIV Serologic and Nucleic Acid Tests Evaluation Project. FOR FURTHER INFORMATION CONTACT: Jeffrey Johnson, National Center for HIV, Viral Hepatitis, STD, and TB Prevention, Centers for Disease Control and Prevention, 1600 Clifton Road NE, Mailstop 18–2, Atlanta, GA 30329; Telephone 404–639–4976; Email: jlj6@ cdc.gov. SUPPLEMENTARY INFORMATION: Background Priority for technical evaluations are rapid tests or mail-in sample collection methods that can be self-administered outside of clinic settings. Secondarily, tests or collection methods that have the potential for both HIV–1 diagnostic and prognostic use for monitoring responses to therapy are preferred. The objective of the collaboration is timely collection of data to evaluate the performance characteristics of simplified nucleic acid and serologic tests or protocols when used in their intended applications. Only tests that are under or near production (i.e., not first-generation prototypes) will be eligible for the collaboration. Companies that are interested in collaborating must be planning to market a test protocol for distribution in the United States and to seek FDA approval for diagnostic or prognostic use. Currently, nucleic acid testing conducted as part of CDC’s laboratory algorithm has a delay in returning results because testing is often conducted in referral laboratories. Likewise, pooled nucleic acid testing causes delays due to the time required to create and break down pools in the event of a positive pool. Moreover, there are significant financial stability, geographic isolation, and stigma barriers to accessing testing in clinical settings that prevent sustained continuum of care for many populations, including the most vulnerable. Methods to support rapid identification of HIV–1 infection or viral suppression using a simplified nucleic acid or serologic test, or use of self-collection methods, may have a significant impact on individuals by allowing them to obtain care and services more quickly. Tests should be simple to use on unprocessed specimens (e.g., whole PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 38055 blood) or include specimen processing in the design of the test. For nucleic acid tests, preference may also be given to tests that are capable of both qualitative and quantitative applications. Key benchmarks are the ability to demonstrate improved sensitivity of diagnostic tests over current FDA-approved laboratory-based tests and nucleic acid monitoring test protocols that are suitable for lower complexity settings. CDC and Collaborator Roles and Responsibilities CDC’s role may include, but will not be limited to, the following: (1) Providing scientific and technical expertise needed for the research project; (2) Providing assistance with project management and data analysis; (3) Providing testing support as determined by CDC as needed; and (4) Publishing research results. CDC anticipates that the role of the successful collaborator(s) will include the following: (1) Providing tests and finalized protocols that can be used in the evaluation; and (2) Providing the CDC Division of HIV Prevention access to necessary data about the diagnostic tests in support of the evaluation activities. Selection Criteria Proposals submitted for consideration should address, as fully as possible and to the extent relevant to the proposal, each of the following: (1) Data available on the performance of the test in persons with acute and established HIV–1 infection. (2) Information on the technology used for the test and its basic operating principals for detecting HIV RNA, DNA, antibody, or antigen. (3) Information on: a. the time required to perform the test or sample collection method; b. whether the test is performed on whole blood, serum, plasma, or dried blood spots; and c. the steps involved in performing the test on each specimen type or sample collection method; (4) Information on the storage requirements and stability of the test. (5) Plans, capability, and clinical trial designs of the company to seek HHS/ FDA approval and whether the company intends to seek a diagnostic claim, a prognostic claim (for patient monitoring), or both. (6) Plans the company has for seeking CLIA waiver status, for appropriate tests, if FDA approved. E:\FR\FM\12JNN1.SGM 12JNN1

Agencies

[Federal Register Volume 88, Number 112 (Monday, June 12, 2023)]
[Notices]
[Pages 38054-38055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-12389]


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FEDERAL RESERVE SYSTEM

[Docket No. OP-1808]


Announcement of Financial Sector Liabilities

    The Board's Regulation XX prohibits a merger or acquisition that 
would result in a financial company that controls more than 10 percent 
of the aggregate consolidated liabilities of all financial companies 
(``aggregate financial sector liabilities'').\1\ Specifically, an 
insured depository institution, a bank holding company, a savings and 
loan holding company, a foreign banking organization, any other company 
that controls an insured depository institution, and a nonbank 
financial company designated by the Financial Stability Oversight 
Council (each, a ``financial company'') is prohibited from merging or 
consolidating with, acquiring all or substantially all of the assets 
of, or acquiring control of, another company if the resulting company's 
consolidated liabilities would exceed 10 percent of the aggregate 
financial sector liabilities.\2\
---------------------------------------------------------------------------

    \1\ Regulation XX implements section 622 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act. See 12 U.S.C. 1852.
    \2\ 12 U.S.C. 1852(a)(2), (b); 12 CFR 251.3.
---------------------------------------------------------------------------

    Under Regulation XX, the Federal Reserve will publish the aggregate 
financial sector liabilities by July 1 of each year. Aggregate 
financial sector liabilities are equal to the average of the year-end 
financial sector liabilities figure (as of December 31) of each of the 
preceding two calendar years.

FOR FURTHER INFORMATION CONTACT: Lesley Chao, Lead Financial 
Institution Policy Analyst, (202) 974-7063; Shooka Saket, Financial 
Institution Policy Analyst, (202) 452-3869; Matthew Suntag, Senior 
Counsel, (202) 452-3694; Laura Bain, Senior Counsel, (202) 736-5546; 
for users of telephone systems via text telephone (TTY) or any TTY-
based Telecommunications Relay Services (TRS), please call 711 from any 
telephone, anywhere in the United States; Board of Governors of the 
Federal Reserve System, 20th and C Streets NW, Washington, DC 20551.

Aggregate Financial Sector Liabilities

    ``Aggregate financial sector liabilities'' is equal to 
$23,694,977,610,000.\3\ This measure is in effect from July 1, 2023 
through June 30, 2024.
---------------------------------------------------------------------------

    \3\ This number reflects the average of the financial sector 
liabilities figure for the years ending December 31, 2021 
($23,469,486,089,000) and December 31, 2022 ($23,920,469,131,000).
---------------------------------------------------------------------------

Calculation Methodology

    The aggregate financial sector liabilities measure equals the 
average of the year-end financial sector liabilities figure (as of 
December 31) of each of the preceding two calendar years. The year-end 
financial sector liabilities figure equals the sum of the total 
consolidated liabilities of all top-tier U.S. financial companies and 
the U.S. liabilities of all top-tier foreign financial companies, 
calculated using the applicable methodology for each financial company, 
as set forth in Regulation XX and summarized below.
    Consolidated liabilities of a U.S. financial company that was 
subject to consolidated risk-based capital rules as of December 31 of 
the year being measured, equal the difference between the U.S. 
financial company's risk-weighted assets (as adjusted upward to reflect 
amounts that are deducted from regulatory capital elements pursuant to 
the Federal banking agencies' risk-based capital rules) and total 
regulatory capital, as calculated under the applicable risk-based 
capital rules. Companies in this category include (with certain 
exceptions listed below) bank holding companies, savings and loan 
holding companies, and insured depository institutions. The Federal 
Reserve used information collected on the Consolidated Financial 
Statements for Holding Companies (``FR Y-9C'') and the Bank 
Consolidated Reports of Condition and Income (``Call Report'') to 
calculate liabilities of these institutions.
    Consolidated liabilities of a U.S. financial company not subject to 
consolidated risk-based capital rules as of December 31 of the year 
being measured, equal liabilities calculated in accordance with 
applicable accounting standards. Companies in this category include 
nonbank financial companies supervised by the Board, bank holding 
companies and savings and loan holding companies subject to the Federal 
Reserve's Small Bank Holding Company Policy Statement, savings and loan 
holding companies substantially engaged in insurance underwriting or 
commercial activities, and U.S. companies that control insured 
depository institutions but are not bank holding companies or savings 
and loan holding companies. ``Applicable accounting standards'' is 
defined as Generally Accepted Accounting Principles (``GAAP''), or such 
other accounting standard or method of estimation that the Board 
determines is appropriate.\4\ The Federal Reserve used information 
collected on the FR Y-9C, the Parent Company Only Financial Statements 
for Small Holding Companies (``FR Y-9SP''), and the Financial Company 
Report of Consolidated Liabilities (``FR XX-1'') to calculate 
liabilities of these institutions.
---------------------------------------------------------------------------

    \4\ A financial company may request to use an accounting 
standard or method of estimation other than GAAP if it does not 
calculate its total consolidated assets or liabilities under GAAP 
for any regulatory purpose (including compliance with applicable 
securities laws). 12 CFR 251.3(e). In previous years, the Board 
received and approved requests from eleven financial companies to 
use an accounting standard or method of estimation other than GAAP 
to calculate liabilities. Ten of the companies were insurance 
companies that reported financial information under Statutory 
Accounting Principles (``SAP''), and one was a foreign company that 
controlled a U.S. industrial loan company that reported financial 
information under International Financial Reporting Standards 
(``IFRS''). For the insurance companies, the Board approved a method 
of estimation that was based on line items from SAP-based reports, 
with adjustments to reflect certain differences in accounting 
treatment between GAAP and SAP. For the foreign company, the Board 
approved the use of IFRS. Such companies that continue to be subject 
to Regulation XX continue to use the previously approved methods. 
The Board did not receive any new requests this year.
---------------------------------------------------------------------------

    Under Regulation XX, liabilities of a foreign banking 
organization's U.S. operations are calculated using the risk-weighted 
asset methodology for subsidiaries subject to the risk-based capital 
rule, plus the assets of all branches, agencies, and nonbank 
subsidiaries, calculated in accordance with applicable accounting 
standards.

[[Page 38055]]

Liabilities attributable to the U.S. operations of a foreign financial 
company that is not a foreign banking organization are calculated in a 
similar manner to the method described for foreign banking 
organizations, and liabilities of a U.S. subsidiary not subject to the 
risk-based capital rule are calculated based on the U.S. subsidiary's 
liabilities under applicable accounting standards. The Federal Reserve 
used information collected on the Capital and Asset Report for Foreign 
Banking Organizations (``FR Y-7Q''), the FR Y-9C, and the FR XX-1 to 
calculate liabilities of these institutions.

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Director of Supervision and Regulation 
under delegated authority.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2023-12389 Filed 6-9-23; 8:45 am]
BILLING CODE P
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