80 FR 50805 - Proposed Amendments to the Stress Test Rule
FEDERAL HOUSING FINANCE AGENCY Federal Register Volume 80, Issue 162 (August 21, 2015)
Federal Register Volume 80, Issue 162 (August 21, 2015)
| Page Range | 50805-50808 | |
| FR Document | 2015-20613 |
[Federal Register Volume 80, Number 162 (Friday, August 21, 2015)] [Proposed Rules] [Pages 50805-50808] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-20613] ======================================================================= ----------------------------------------------------------------------- FEDERAL HOUSING FINANCE AGENCY 12 CFR Part 1238 RIN 2590-AA74 Proposed Amendments to the Stress Test Rule AGENCY: Federal Housing Finance Agency. ACTION: Notice of proposed rulemaking with request for comment. ----------------------------------------------------------------------- SUMMARY: The Federal Housing Finance Agency (FHFA) is proposing amendments to its stress testing rule adopted in 2013 to implement section 165(i) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The amendments would modify the start date of the stress test cycles from October 1 of a calendar year to January 1 of the following calendar year. The amendments would also modify the dates for FHFA to issue scenarios for the upcoming cycle, the dates for the regulated entities to report the results of their stress tests to FHFA, and the dates for the regulated entities to publicly disclose a summary of their stress test results for the severely adverse scenario. These amendments would align FHFA's rule with rules adopted by other financial institution regulators that implement the Dodd-Frank stress testing requirements. DATES: Comments on the proposed amendments must be received on or before September 21, 2015. ADDRESSES: You may submit your comments, identified by regulatory identification number (RIN) 2590-AA74, by any of the following methods:Agency Web site: www.fhfa.gov/open-for-comment-or-input. Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. If you submit your comment to the Federal eRulemaking Portal, please also send it by email to FHFA at [email protected] to ensure timely receipt by the agency. Please include ``RIN 2590-AA74'' in the subject line of the message. Hand Delivered/Courier: The hand delivery address is: Alfred M. Pollard, General Counsel, Attention: Comments/ [[Page 50806]] RIN 2590-AA74, Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024. Deliver the package to the Seventh Street entrance Guard Desk, First Floor, on business days between 9 a.m. and 5 p.m. U.S. Mail, United Parcel Service, Federal Express or Other Mail Service: The mailing address for comments is: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590-AA74, Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024. See SUPPLEMENTARY INFORMATION for additional information on submission and posting of comments. FOR FURTHER INFORMATION CONTACT: Naa Awaa Tagoe, Senior Associate Director, Office of Financial Analysis, Modeling and Simulations, (202) 649-3140, [email protected]; Stefan Szilagyi, Examination Manager, FHLBank Modeling, FHLBank Risk Modeling Branch (202) 649-3515, [email protected]; Karen Heidel, Senior Counsel, Office of General Counsel, (202) 649-3073, [email protected]; or Mark D. Laponsky, Deputy General Counsel, Office of General Counsel, (202) 649- 3054, [email protected]. The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877-8339. SUPPLEMENTARY INFORMATION: I. Comments FHFA invites comment on all aspects of the proposed amendments and will take all comments into consideration before adopting amendments through a final rule. Copies of all comments received will be posted without change on the FHFA Web site at http://www.fhfa.gov, and will include any personal information you provide, such as your name, address, email address, and telephone number. In addition, copies of all comments received will be available for examination by the public on business days between the hours of 10 a.m. and 3 p.m. at the Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024. To make an appointment to inspect comments, please call the Office of General Counsel at (202) 649-3804. II. Background FHFA is an independent agency of the federal government established to regulate and oversee the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), and the Federal Home Loan Banks (Bank(s)) (collectively, the regulated entities).\1\ FHFA is the primary federal financial regulator of each regulated entity. FHFA's regulatory mission is to ensure, among other things, that each of the regulated entities ``operates in a safe and sound manner'' and that their ``operations and activities . . . foster liquid, efficient, competitive, and resilient national housing finance markets.'' \2\ --------------------------------------------------------------------------- \1\ Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008, 12 U.S.C. 4501, et seq. \2\ 12 U.S.C. 4513(a)(1)(B). --------------------------------------------------------------------------- On September 26, 2013, FHFA published a final rule implementing section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act),\3\ which requires certain financial companies with total consolidated assets of more than $10 billion to conduct annual stress tests to determine whether the companies have the capital necessary to absorb losses as a result of adverse economic conditions. Each regulated entity is covered by this Dodd-Frank Act requirement. FHFA's regulation, located at 12 CFR part 1238, requires each regulated entity to conduct an annual stress test based on scenarios provided by FHFA and consistent with FHFA prescribed methodologies and practices. The annual stress test period begins October 1 of one year and ends September 30 of the next year, which coincides with the testing period established by Federal Reserve Board (FRB) regulations for its Dodd-Frank Act stress testing. --------------------------------------------------------------------------- \3\ 78 FR 59219 (September 26, 2013). --------------------------------------------------------------------------- FHFA's regulation requires that the agency issue to the regulated entities stress test scenarios that are generally consistent with and comparable to those developed by the FRB not later than 15 days after the FRB publishes its scenarios.\4\ Each regulated entity is required to report the stress test results to FHFA and the FRB and publicly disclose a summary of the stress test results for the severely adverse scenario. The reporting date for the Enterprises is on or before February 5, and for the Banks it is on or before April 30.\5\ Each Enterprise must publicly disclose a summary of its results from the severely adverse scenario of the stress test not earlier than April 15 and not later than April 30.\6\ The Banks are required to disclose their summaries not earlier than July 15 and not later than July 30.\7\ These dates were established by measuring forward from the corresponding dates in the FRB regulation, after accounting for differences in the business models of the regulated entities from those of the institutions regulated by the FRB. --------------------------------------------------------------------------- \4\ 12 CFR 1238.3(b). \5\ 12 CFR 1238.5(a). \6\ 12 CFR 1238.7(a). \7\ 12 CFR 1238.7(a). --------------------------------------------------------------------------- On October 27, 2014, the FRB published a final rule amending several dates relevant to its rule and from which FHFA measured to determine appropriate dates for stress testing cycles, scenario issuance, test reporting, and summary test disclosures.\8\ The FRB's new rule establishes January 1 of each year as the beginning of the stress testing cycle (changed from October 1) and the following December 31 as the date as of which the regulated entity is to identify and use data for testing.\9\ The new FRB rule requires large bank holding companies with $50 billion or more in total consolidated assets to report their test results not later than April 5 \10\ and publicly disclose their summary results by mid-July.\11\ The new FRB rule also requires U.S. banking institutions with total consolidated assets over $10 billion and less than $50 billion to report their test results by July 31 and publicly disclose their results during the period beginning October 15 and ending October 31.\12\ Since FHFA measured several of its regulatory dates from corresponding dates in the FRB regulation, FHFA now needs to amend its regulation to maintain consistency and comparability in stress testing regimes. --------------------------------------------------------------------------- \8\ 79 FR 64025 (October 27, 2014), codified at 12 CFR part 252. \9\ 12 CFR 252.12(t)(2), See 79 FR 64046. \10\ 12 CFR 252.57(a)(1), See 79 FR 64054. \11\ 12 CFR 252.58(a)(1)(i), requires companies to publicly disclose a summary of the stress test results within 15 calendar days after the FRB discloses the results of its supervisory stress test. The FRB will publicly disclose a summary of the supervisory stress test results by June 30 pursuant to 12 CFR 252.46(b)(1). See 79 FR 64054. \12\ 12 CFR 252.17(a)(3)(iii), See 79 FR 64049. --------------------------------------------------------------------------- As a result of FHFA's experience through two stress test cycles, these amendments also propose to lengthen the time between FRB's issuance of its scenarios and FHFA's issuance. The existing 15 day period after FRB's issuance has proven to be too short to allow appropriate analysis, stakeholder input, and adjustment of the scenarios to account for the differences in business models between the Enterprises and Banks as compared with other regulated institutions conducting Dodd-Frank stress tests under their regulators' rules. Consequently, FHFA proposes to extend the time by which it is required to issue its scenarios to 30 calendar days following FRB's issuance of its final element of the supervisory scenarios. [[Page 50807]] III. Analysis of Proposed Rule The purpose of the proposed rule is to realign FHFA's stress testing rule with those of the FRB, Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) by modifying: (1) The start date of the stress test cycles from October 1 of a calendar year to January 1 of the following calendar year; (2) the dates regulated entities are required to report stress test results to FHFA and the FRB; (3) the dates by which the regulated entities are required to publicly disclose summaries of the results for the severely adverse scenario; and (4) the date by which FHFA is required to issue stress testing scenarios to its regulated entities. The proposed amendments would shift the start of the stress test cycles, as well as the related deadline for submission of results, by one calendar quarter. As a result of the proposed shift, the stress test cycles would begin on January 1, based on data as of December 31 of the preceding calendar year. This cycle matches the cycle recently adopted by the other Dodd-Frank stress testing regulators. Each Enterprise would be required to report the results of its stress test to FHFA and the FRB by May 20, and publicly disclose a summary of the stress test results not earlier than August 1 and not later than August 15 of each year. This change mirrors the FRB's new requirement for large bank holding companies with over $50 billion in total consolidated assets. The changes required to maintain alignment with the FRB also result in shifting the reporting deadline for the Banks by four months, requiring submission of results to FHFA and FRB on or before August 31 and public disclosure not earlier than November 15 and not later than November 30 of each year. To maintain consistency with the other Dodd-Frank stress testing regulators, the stress testing cycle shift will take effect beginning on January 1, 2016, for all regulated entities. Section 1238.3(b) of the current rule states that: ``[n]ot later than 15 days after the FRB publishes its scenarios, FHFA will issue to all regulated entities a description of the baseline, adverse, and severely adverse scenarios that each regulated entity shall use to conduct its annual stress tests under this part.'' On October 27, 2014, the FRB changed the publication date by which it must publish its scenarios for the upcoming cycle from November 15 to February 15, for the cycle beginning January 1, 2016 and thereafter.\13\ The effect of the rule change shifts the date for scenario issuance by approximately three months. FHFA proposes to change Sec. 1238.3(b) to provide additional time for it to analyze and adjust the scenarios it issues to the Enterprises and Banks. The proposed amendment will change the existing fifteen (15) day period in Sec. 1238.3(b) to a thirty (30) day period. Thus, if the FRB issues its scenarios including all elements and assumptions on February 15, under the proposed amendment FHFA would issue its scenarios on or before March 17 (March 16 in a leap year). --------------------------------------------------------------------------- \13\ 12 CFR 252.14(b)(1), See 79 FR 64047. --------------------------------------------------------------------------- IV. Coordination With the FRB and the Federal Insurance Office In accordance with section 165(i)(2)(C) of the Dodd-Frank Act, (12 U.S.C. 5365(i)(2)(C)), FHFA has coordinated with both the FRB and the Federal Insurance Office (FIO). On October 27, 2014, the FRB published a final rule covering ``bank holding compan[ies] with total consolidated assets of greater than $10 billion but less than $50 billion and savings and loan holding companies and state member banks with total consolidated assets of greater than $10 billion,'' \14\ and large bank holding companies and non-bank financial companies, also known as ``covered companies''; \15\ the FDIC issued its final rule on November 21, 2014; \16\ and the OCC issued its final rule on December 3, 2014.\17\ Although FHFA's amended final rule would not be identical to those of the FRB, the FDIC, and the OCC, it is consistent and comparable with them. FHFA consulted with the FRB and FIO before proposing these amendments. --------------------------------------------------------------------------- \14\ 12 CFR part 252, subpart B, See 79 FR 64045. \15\ 12 CFR part 252, subpart F, See 79 FR 64051. \16\ 79 FR 69365 (November 21, 2014), codified at 12 CFR part 325. \17\ 79 FR 71630 (December 3, 2014), codified at 12 CFR part 46. --------------------------------------------------------------------------- V. Differences Between the Banks and the Enterprises Section 1313(f) of the Safety and Soundness Act requires the Director to consider the differences between the Banks and the Enterprises whenever promulgating regulations that affect the Banks. In developing this proposed rule, FHFA considered the differences between the Banks and the Enterprises, but also adhered to the statutory mandate that the regulation be ``consistent and comparable'' with the regulations of the other agencies. In implementing the regulation, FHFA will define scenarios for the regulated entities, bearing in mind the key risk exposures at each regulated entity. In the proposed rule, FHFA requires different timeframes for reporting stress test results for the Enterprises versus the Banks. For the Enterprises, FHFA sets the dates for reporting stress test results to the regulator, the FRB, and the public in proximity to similar dates in the other agencies' rules for institutions with over $50 billion in assets. Reporting dates for all the Banks, regardless of size, are set in proximity to similar dates for institutions with less than $50 billion in assets. As a result, the Banks have over three additional months to report results to FHFA, the FRB, and the public. VI. Paperwork Reduction Act The proposed rule does not contain any collections of information pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.). Therefore, FHFA has not submitted any information to the Office of Management and Budget for review. VII. Regulatory Flexibility Act The proposed rule applies only to the regulated entities, which do not come within the meaning of small entities as defined in the Regulatory Flexibility Act (see 5 U.S.C. 601(6)). Therefore, in accordance with section 605(b) of the Regulatory Flexibility Act (5 U.S.C. 605(b)), the General Counsel of FHFA certifies that this proposed rule, if promulgated as a final rule, will not have a significant economic impact on a substantial number of small entities. List of Subjects in 12 CFR Part 1238 Administrative practice and procedure, Capital, Federal Home Loan Banks, Government-sponsored enterprises, Regulated entities, Reporting and recordkeeping requirements, Stress test. Authority and Issuance For the reasons stated in the SUPPLEMENTARY INFORMATION, and under the authority of 12 U.S.C. 4513, 4526, and 5365(i), FHFA proposes to amend part 1238 of Title 12 of the Code of Federal Regulations as follows: PART 1238--STRESS TESTING OF REGULATED ENTITIES 0 1. The authority citation for part 1238 continues to read as follows: Authority: 12 U.S.C. 1426; 4513; 4526; 4612; 5365(i). 0 2. Amend Sec. 1238.3 by revising paragraphs (a)(1) and (b) to read as follows: [[Page 50808]] Sec. 1238.3 Annual stress test. (a) * * * (1) Shall complete an annual stress test of itself based on its data as of December 31 of the preceding calendar year; * * * * * (b) Scenarios provided by FHFA. In conducting its annual stress tests under this section, each regulated entity must use scenarios provided by FHFA, which shall be generally consistent with and comparable to those established by the FRB, that reflect a minimum of three sets of economic and financial conditions, including a baseline, adverse, and severely adverse scenario. Not later than 30 days after the FRB publishes its scenarios, FHFA will issue to all regulated entities a description of the baseline, adverse, and severely adverse scenarios that each regulated entity shall use to conduct its annual stress tests under this part. * * * * * 0 3. Amend Sec. 1238.5 by revising paragraph (a) to read as follows: Sec. 1238.5 Required report to FHFA and the FRB of stress test results and related information. (a) Report required for stress tests. On or before May 20 of each year, the Enterprises must report the results of the stress tests required under Sec. 1238.3 to FHFA, and to the FRB, in accordance with paragraph (b) of this section; and on or before August 31 of each year, the Banks must report the results of the stress tests required under Sec. 1238.3 to FHFA, and to the FRB, in accordance with paragraph (b) of this section; * * * * * 0 4. Amend Sec. 1238.7 by revising paragraph (a) to read as follows: Sec. 1238.7 Publication of results by regulated entities. (a) Public disclosure of results required for stress tests of regulated entities. The Enterprises must disclose publicly a summary of the stress test results for the severely adverse scenario not earlier than August 1 and not later than August 15 of each year. Each Bank must disclose publicly a summary of the stress test results for the severely adverse scenario not earlier than November 15 and not later than November 30 of each year. The summary may be published on the regulated entity's Web site or in any other form that is reasonably accessible to the public; * * * * * Dated: August 13, 2015. Melvin L. Watt, Director, Federal Housing Finance Agency. [FR Doc. 2015-20613 Filed 8-20-15; 8:45 am] BILLING CODE 8070-01-P
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DATES: The comment period for the • NRC’s Agencywide Documents Dated at Rockville, Maryland, this 17th day
document published on June 23, 2015, Access and Management System of August, 2015.
at 80 FR 35870, is extended. Comments (ADAMS): You may obtain publicly- For the Nuclear Regulatory Commission.
should be filed no later than November available documents online in the Annette L. Vietti-Cook,
19, 2015. Comments received after this ADAMS Public Documents collection at Secretary of the Commission.
date will be considered, if it is practical http://www.nrc.gov/reading-rm/ [FR Doc. 2015–20722 Filed 8–20–15; 8:45 am]
to do so, but the Commission is able to adams.html. To begin the search, select BILLING CODE 7590–01–P
ensure consideration only for comments ‘‘ADAMS Public Documents’’ and then
received on or before this date. select ‘‘Begin Web-based ADAMS
ADDRESSES: You may submit comments Search.’’ For problems with ADAMS,
FEDERAL HOUSING FINANCE
by any of the following methods (unless please contact the NRC’s Public
AGENCY
this document describes a different Document Room (PDR) reference staff at
method for submitting comments on a 1–800–397–4209, 301–415–4737, or by 12 CFR Part 1238
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• Federal Rulemaking Web site: Go to • NRC’s PDR: You may examine and RIN 2590–AA74
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the NRC’s PDR, Room O1–F21, One Proposed Amendments to the Stress
for Docket ID NRC–2015–0057. Address
White Flint North, 11555 Rockville Test Rule
questions about NRC dockets to Carol
Gallagher; telephone: 301–415–3463; Pike, Rockville, Maryland 20852. AGENCY: Federal Housing Finance
email: Carol.Gallagher@nrc.gov. For B. Submitting Comments Agency.
technical questions contact the ACTION: Notice of proposed rulemaking
individual listed in the FOR FURTHER Please include Docket ID NRC–2015–
0057 in your comment submission. with request for comment.
INFORMATION CONTACT section of this
document. The NRC cautions you not to include SUMMARY: The Federal Housing Finance
• Email comments to: identifying or contact information that Agency (FHFA) is proposing
Rulemaking.Comments@nrc.gov. If you you do not want to be publicly amendments to its stress testing rule
do not receive an automatic email reply disclosed in your comment submission. adopted in 2013 to implement section
confirming receipt, then contact us at The NRC will post all comment 165(i) of the Dodd-Frank Wall Street
301–415–1677. submissions at http:// Reform and Consumer Protection Act.
• Fax comments to: Secretary, U.S. www.regulations.gov as well as enter the The amendments would modify the
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415–1101. The NRC does not routinely edit October 1 of a calendar year to January
• Mail comments to: Secretary, U.S. comment submissions to remove 1 of the following calendar year. The
Nuclear Regulatory Commission, identifying or contact information. amendments would also modify the
Washington, DC 20555–0001, ATTN: If you are requesting or aggregating dates for FHFA to issue scenarios for the
Rulemakings and Adjudications Staff. comments from other persons for upcoming cycle, the dates for the
• Hand deliver comments to: 11555 submission to the NRC, then you should regulated entities to report the results of
Rockville Pike, Rockville, Maryland inform those persons not to include their stress tests to FHFA, and the dates
20852, between 7:30 a.m. and 4:15 p.m. identifying or contact information that for the regulated entities to publicly
(Eastern Time) Federal workdays; they do not want to be publicly disclose a summary of their stress test
telephone: 301–415–1677. disclosed in their comment submission. results for the severely adverse scenario.
For additional direction on obtaining Your request should state that the NRC These amendments would align FHFA’s
information and submitting comments, does not routinely edit comment rule with rules adopted by other
see ‘‘Obtaining Information and submissions to remove such information financial institution regulators that
Submitting Comments’’ in the before making the comment implement the Dodd-Frank stress testing
SUPPLEMENTARY INFORMATION section of submissions available to the public or requirements.
this document. entering the comment into ADAMS.
DATES: Comments on the proposed
FOR FURTHER INFORMATION CONTACT: II. Discussion amendments must be received on or
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SUPPLEMENTARY INFORMATION: basis of those regulations from the linear open-for-comment-or-input.
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rmajette on DSK7SPTVN1PROD with PROPOSALS
0057 when contacting the NRC about rulemaking. send it by email to FHFA at
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action. You may obtain publicly- originally scheduled to close on timely receipt by the agency. Please
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III. Analysis of Proposed Rule and thereafter.13 The effect of the rule entities, bearing in mind the key risk
change shifts the date for scenario exposures at each regulated entity.
The purpose of the proposed rule is issuance by approximately three In the proposed rule, FHFA requires
to realign FHFA’s stress testing rule months. FHFA proposes to change different timeframes for reporting stress
with those of the FRB, Federal Deposit § 1238.3(b) to provide additional time test results for the Enterprises versus the
Insurance Corporation (FDIC) and the for it to analyze and adjust the scenarios Banks. For the Enterprises, FHFA sets
Office of the Comptroller of the it issues to the Enterprises and Banks. the dates for reporting stress test results
Currency (OCC) by modifying: (1) The The proposed amendment will change to the regulator, the FRB, and the public
start date of the stress test cycles from the existing fifteen (15) day period in in proximity to similar dates in the
October 1 of a calendar year to January § 1238.3(b) to a thirty (30) day period. other agencies’ rules for institutions
1 of the following calendar year; (2) the Thus, if the FRB issues its scenarios with over $50 billion in assets.
dates regulated entities are required to including all elements and assumptions Reporting dates for all the Banks,
report stress test results to FHFA and on February 15, under the proposed regardless of size, are set in proximity
the FRB; (3) the dates by which the amendment FHFA would issue its to similar dates for institutions with less
regulated entities are required to scenarios on or before March 17 (March than $50 billion in assets. As a result,
publicly disclose summaries of the 16 in a leap year). the Banks have over three additional
results for the severely adverse scenario; months to report results to FHFA, the
and (4) the date by which FHFA is IV. Coordination With the FRB and the
Federal Insurance Office FRB, and the public.
required to issue stress testing scenarios
to its regulated entities. In accordance with section VI. Paperwork Reduction Act
The proposed amendments would 165(i)(2)(C) of the Dodd-Frank Act, (12 The proposed rule does not contain
shift the start of the stress test cycles, as U.S.C. 5365(i)(2)(C)), FHFA has any collections of information pursuant
well as the related deadline for coordinated with both the FRB and the to the Paperwork Reduction Act of 1995
submission of results, by one calendar Federal Insurance Office (FIO). On (44 U.S.C. 3501, et seq.). Therefore,
quarter. As a result of the proposed October 27, 2014, the FRB published a FHFA has not submitted any
shift, the stress test cycles would begin final rule covering ‘‘bank holding information to the Office of
on January 1, based on data as of compan[ies] with total consolidated Management and Budget for review.
December 31 of the preceding calendar assets of greater than $10 billion but less
than $50 billion and savings and loan VII. Regulatory Flexibility Act
year. This cycle matches the cycle
recently adopted by the other Dodd- holding companies and state member The proposed rule applies only to the
Frank stress testing regulators. Each banks with total consolidated assets of regulated entities, which do not come
Enterprise would be required to report greater than $10 billion,’’ 14 and large within the meaning of small entities as
the results of its stress test to FHFA and bank holding companies and non-bank defined in the Regulatory Flexibility Act
the FRB by May 20, and publicly financial companies, also known as (see 5 U.S.C. 601(6)). Therefore, in
disclose a summary of the stress test ‘‘covered companies’’; 15 the FDIC accordance with section 605(b) of the
results not earlier than August 1 and not issued its final rule on November 21, Regulatory Flexibility Act (5 U.S.C.
later than August 15 of each year. This 2014; 16 and the OCC issued its final 605(b)), the General Counsel of FHFA
change mirrors the FRB’s new rule on December 3, 2014.17 Although certifies that this proposed rule, if
requirement for large bank holding FHFA’s amended final rule would not promulgated as a final rule, will not
companies with over $50 billion in total be identical to those of the FRB, the have a significant economic impact on
consolidated assets. The changes FDIC, and the OCC, it is consistent and a substantial number of small entities.
required to maintain alignment with the comparable with them. FHFA consulted
List of Subjects in 12 CFR Part 1238
FRB also result in shifting the reporting with the FRB and FIO before proposing
deadline for the Banks by four months, these amendments. Administrative practice and
requiring submission of results to FHFA procedure, Capital, Federal Home Loan
V. Differences Between the Banks and
and FRB on or before August 31 and Banks, Government-sponsored
the Enterprises
public disclosure not earlier than enterprises, Regulated entities,
Section 1313(f) of the Safety and Reporting and recordkeeping
November 15 and not later than
Soundness Act requires the Director to requirements, Stress test.
November 30 of each year.
consider the differences between the
To maintain consistency with the Authority and Issuance
Banks and the Enterprises whenever
other Dodd-Frank stress testing promulgating regulations that affect the For the reasons stated in the
regulators, the stress testing cycle shift Banks. In developing this proposed rule, SUPPLEMENTARY INFORMATION, and under
will take effect beginning on January 1, FHFA considered the differences the authority of 12 U.S.C. 4513, 4526,
2016, for all regulated entities. between the Banks and the Enterprises, and 5365(i), FHFA proposes to amend
Section 1238.3(b) of the current rule but also adhered to the statutory part 1238 of Title 12 of the Code of
states that: ‘‘[n]ot later than 15 days after mandate that the regulation be Federal Regulations as follows:
the FRB publishes its scenarios, FHFA ‘‘consistent and comparable’’ with the
will issue to all regulated entities a regulations of the other agencies. In PART 1238—STRESS TESTING OF
description of the baseline, adverse, and implementing the regulation, FHFA will REGULATED ENTITIES
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severely adverse scenarios that each define scenarios for the regulated
regulated entity shall use to conduct its ■ 1. The authority citation for part 1238
annual stress tests under this part.’’ On 13 12 CFR 252.14(b)(1), See 79 FR 64047.
continues to read as follows:
October 27, 2014, the FRB changed the 14 12 CFR part 252, subpart B, See 79 FR 64045. Authority: 12 U.S.C. 1426; 4513; 4526;
publication date by which it must 15 12 CFR part 252, subpart F, See 79 FR 64051. 4612; 5365(i).
16 79 FR 69365 (November 21, 2014), codified at
publish its scenarios for the upcoming ■ 2. Amend § 1238.3 by revising
12 CFR part 325.
cycle from November 15 to February 15, 17 79 FR 71630 (December 3, 2014), codified at 12 paragraphs (a)(1) and (b) to read as
for the cycle beginning January 1, 2016 CFR part 46. follows:
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![50808 Federal Register / Vol. 80, No. 162 / Friday, August 21, 2015 / Proposed Rules
§ 1238.3 Annual stress test. Dated: August 13, 2015. and read the electronic form of all
(a) * * * Melvin L. Watt, comments received into any FAA
Director, Federal Housing Finance Agency. docket, including the name of the
(1) Shall complete an annual stress individual sending the comment (or
[FR Doc. 2015–20613 Filed 8–20–15; 8:45 am]
test of itself based on its data as of signing the comment for an association,
BILLING CODE 8070–01–P
December 31 of the preceding calendar business, labor union, etc.). DOT’s
year; complete Privacy Act Statement can be
* * * * * found in the Federal Register published
DEPARTMENT OF TRANSPORTATION
on April 11, 2000 (65 FR 19477–19478),
(b) Scenarios provided by FHFA. In
Federal Aviation Administration as well as at http://DocketsInfo.dot.gov.
conducting its annual stress tests under Docket: Background documents or
this section, each regulated entity must comments received may be read at
use scenarios provided by FHFA, which 14 CFR Part 23
http://www.regulations.gov at any time.
shall be generally consistent with and [Docket No. FAA–2015–3464; Notice No. 23– Follow the online instructions for
comparable to those established by the 15–04–SC] accessing the docket or go to the Docket
FRB, that reflect a minimum of three Operations in Room W12–140 of the
sets of economic and financial Special Conditions: Cirrus Aircraft West Building Ground Floor at 1200
conditions, including a baseline, Corporation, SF50; Auto Throttle. New Jersey Avenue SE., Washington,
adverse, and severely adverse scenario. DC, between 9 a.m., and 5 p.m., Monday
AGENCY: Federal Aviation
Not later than 30 days after the FRB through Friday, except Federal holidays.
Administration (FAA), DOT.
publishes its scenarios, FHFA will issue FOR FURTHER INFORMATION CONTACT: Jeff
ACTION: Notice of proposed special
to all regulated entities a description of Pretz, FAA, Regulations and Policy
the baseline, adverse, and severely conditions.
Branch, ACE–111, Small Airplane
adverse scenarios that each regulated SUMMARY: This action proposes special Directorate, Aircraft Certification
entity shall use to conduct its annual conditions for the Cirrus Aircraft Service, 901 Locust; Kansas City,
stress tests under this part. Corporation Model SF50 airplane. This Missouri 64106; telephone (816) 329–
* * * * * airplane will have a novel or unusual 3239; facsimile (816) 329–4090.
■ 3. Amend § 1238.5 by revising design feature(s) associated with SUPPLEMENTARY INFORMATION:
paragraph (a) to read as follows: installation of an Auto Throttle System.
The applicable airworthiness Comments Invited
§ 1238.5 Required report to FHFA and the regulations do not contain adequate or We invite interested people to take
FRB of stress test results and related appropriate safety standards for this part in this rulemaking by sending
information. design feature. These proposed special written comments, data, or views. The
conditions contain the additional safety most helpful comments reference a
(a) Report required for stress tests. On
standards that the Administrator specific portion of the special
or before May 20 of each year, the
considers necessary to establish a level conditions, explain the reason for any
Enterprises must report the results of
of safety equivalent to that established recommended change, and include
the stress tests required under § 1238.3
by the existing airworthiness standards. supporting data. We ask that you send
to FHFA, and to the FRB, in accordance us two copies of written comments.
with paragraph (b) of this section; and DATES: Send your comments on or
We will consider all comments we
on or before August 31 of each year, the before October 5, 2015.
receive on or before the closing date for
Banks must report the results of the ADDRESSES: Send comments identified comments. We will consider comments
stress tests required under § 1238.3 to by docket number FAA–2015–3464 filed late if it is possible to do so
FHFA, and to the FRB, in accordance using any of the following methods: without incurring expense or delay. We
with paragraph (b) of this section; D Federal eRegulations Portal: Go to may change these special conditions
* * * * * http://www.regulations.gov and follow based on the comments we receive.
the online instructions for sending your
■ 4. Amend § 1238.7 by revising Background
comments electronically.
paragraph (a) to read as follows: D Mail: Send comments to Docket On September 9, 2008, Cirrus Aircraft
§ 1238.7 Publication of results by Operations, M–30, U.S. Department of Corporation applied for a type
regulated entities. Transportation (DOT), 1200 New Jersey certificate for their new Model SF50. On
Avenue SE., Room W12–140, West December 11, 2012 Cirrus elected to
(a) Public disclosure of results Building Ground Floor, Washington, DC adjust the certification basis of the SF50
required for stress tests of regulated 20590–0001. to include 14 CFR part 23 through
entities. The Enterprises must disclose D Hand Delivery of Courier: Take amendment 62. The SF50 is a low-wing,
publicly a summary of the stress test comments to Docket Operations in 7-seat (5 adults and 2 children),
results for the severely adverse scenario Room W12–140 of the West Building pressurized, retractable gear, carbon
not earlier than August 1 and not later Ground Floor at 1200 New Jersey composite airplane with one turbofan
than August 15 of each year. Each Bank Avenue SE., Washington, DC, between 9 engine mounted partially in the upper
must disclose publicly a summary of the a.m., and 5 p.m., Monday through aft fuselage. It is constructed largely of
stress test results for the severely Friday, except Federal holidays. carbon and fiberglass composite
rmajette on DSK7SPTVN1PROD with PROPOSALS
adverse scenario not earlier than D Fax: Fax comments to Docket materials. Like other Cirrus products,
November 15 and not later than Operations at 202–493–2251. the SF50 includes a ballistically
November 30 of each year. The Privacy: The FAA will post all deployed airframe parachute. The SF50
summary may be published on the comments it receives, without change, has a maximum operating altitude of
regulated entity’s Web site or in any to http://regulations.gov, including any 28,000 feet and the maximum takeoff
other form that is reasonably accessible personal information the commenter weight will be at or below 6,000 pounds
to the public; provides. Using the search function of with a range at economy cruise of
* * * * * the docket Web site, anyone can find roughly 1,000 nautical miles.
VerDate Sep<11>2014 15:06 Aug 20, 2015 Jkt 235001 PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 E:\FR\FM\21AUP1.SGM 21AUP1](https://thefederalregister.org/doc/80_FR_50967/page/4.svg)
Document Created: 2018-02-23 11:00:43
Document Modified: 2018-02-23 11:00:43
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Notice of proposed rulemaking with request for comment. | |
| Dates | Comments on the proposed amendments must be received on or before September 21, 2015. | |
| Contact | Naa Awaa Tagoe, Senior Associate Director, Office of Financial Analysis, Modeling and Simulations, (202) 649-3140, [email protected]; Stefan Szilagyi, Examination Manager, FHLBank Modeling, FHLBank Risk Modeling Branch (202) 649-3515, [email protected]; Karen Heidel, Senior Counsel, Office of General Counsel, (202) 649-3073, [email protected]; or Mark D. Laponsky, Deputy General Counsel, Office of General Counsel, (202) 649- 3054, [email protected] The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877-8339. | |
| FR Citation | 80 FR 50805 | |
| RIN Number | 2590-AA74 | |
| CFR Associated | Administrative Practice and Procedure; Capital; Federal Home Loan Banks; Government-Sponsored Enterprises; Regulated Entities; Reporting and Recordkeeping Requirements and Stress Test |
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