80 FR 71795 - Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB

FEDERAL RESERVE SYSTEM

Federal Register Volume 80, Issue 221 (November 17, 2015)

Page Range		71795-71801
FR Document		2015-29348

Notice is hereby given of the final approval of a proposed information collection by the Board of Governors of the Federal Reserve System (Board) under Office of Management and Budget (OMB) delegated authority. Board-approved collections of information are incorporated into the official OMB inventory of currently approved collections of information. Copies of the Paperwork Reduction Act Submission, supporting statement and approved collection of information instruments are placed into OMB's public docket files. The Federal Reserve may not conduct or sponsor, and the respondent is not required to respond to, an information collection that has been extended, revised, or implemented on or after October 1, 1995, unless it displays a currently valid OMB control number.

Federal Register, Volume 80 Issue 221 (Tuesday, November 17, 2015)

[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)]
[Notices]
[Pages 71795-71801]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-29348]

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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: Notice is hereby given of the final approval of a proposed
information collection by the Board of Governors of the Federal Reserve
System (Board) under Office of Management and Budget (OMB) delegated
authority. Board-approved collections of information are incorporated
into the official OMB inventory of currently approved collections of
information. Copies of the Paperwork Reduction Act Submission,
supporting statement and approved collection of information instruments
are placed into OMB's public docket files. The Federal Reserve may not
conduct or sponsor, and the respondent is not required to respond to,
an information collection that has been extended, revised, or
implemented on or after October 1, 1995, unless it displays a currently
valid OMB control number.

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. Telecommunications Device for the Deaf (TDD) users may
contact (202) 263-4869, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
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.
Final approval under OMB delegated authority of the extension for
three years, with revision, of the following information collection:
Report titles: The Complex Institution Liquidity Monitoring Report
(FR 2052a) and the Liquidity Monitoring Report (FR 2052b).
Agency form numbers: FR 2052a and FR 2052b.
OMB control number: 7100-0361.
Frequency: FR 2052a: Daily or monthly; FR 2052b: quarterly.
Respondents:
FR 2052a: Bank holding companies and savings and loan
holding companies subject to the liquidity coverage ratio (together,
U.S. firms) with total assets of $700 billion or more or with $10
trillion or more in assets under custody; U.S. firms with total assets
of less than $700 billion and with assets under custody of less than
$10 trillion, but total assets of $250 billion or more or foreign
exposure of $10 billion or more; U.S. firms with total assets of $50
billion or more but total assets of less than $250 billion and foreign
exposure of less than $10 billion; Foreign banking organizations (FBOs)
that are identified as LISCC firms; FBOs with U.S. assets of $250
billion or more that are not identified as LISCC firms; and FBOs with
U.S. assets of $50 billion or more but U.S. assets less than $250
billion that are not identified as LISCC firms.
FR 2052b: U.S. bank holding companies (BHCs) not
controlled by FBOs with total consolidated assets of $10 billion or
more but less than $50 billion
Estimated annual reporting hours: FR 2052a: 714,480 hours; FR
2052b: 12,480 hours.\1\
---------------------------------------------------------------------------

\1\ With the proposed revisions, the paperwork burden for 2015
is estimated to initially decrease, then incrementally increase for
2016, 2017, and 2018, for an annual net increase of 266,480 hours.
---------------------------------------------------------------------------

Estimated average hours per response: FR 2052a: ranges between 120
hours and 400 hours; FR 2052b: 60 hours.
Number of respondents: FR 2052a: 48; FR 2052b: 52.
General description of report: These reports are authorized
pursuant to section 5 of the Bank Holding Company Act (12 U.S.C. 1844),
section 8 of the International Banking Act (12 U.S.C. 3106) and section
165 of the Dodd-Frank Act (12 U.S.C. 5365) and are mandatory, with
voluntary early reporting on FR 2052a for U.S. firms with total
consolidated assets of $700 billion or more or with assets under
custody of $10 trillion or more, and FBOs identified as LISCC firms.
Section 5(c) of the Bank Holding Company Act authorizes the Board to
require BHCs to submit reports to the Board regarding their financial
condition. Section 8(a) of the International Banking Act subjects FBOs
to the provisions of the Bank Holding Company Act. Section 165 of the
Dodd-Frank Act requires the Board to establish prudential standards for
certain BHCs and FBOs; these standards include liquidity requirements.
The individual financial institution information provided by each
respondent will be accorded confidential treatment under exemption 8 of
the Freedom of Information Act (5 U.S.C. 552(b)(8)). In addition, the
institution information provided by each respondent will not be
otherwise available to the public and is entitled to confidential
treatment under the authority of exemption 4 of the Freedom of
Information Act (5 U.S.C. 552(b)(4)),

[[Page 71796]]

which protects from disclosure trade secrets and commercial or
financial information.
Abstract: The FR 2052 reports are used to monitor the overall
liquidity profile of institutions supervised by the Federal Reserve.
These data provide detailed information on the liquidity risks within
different business lines (e.g., financing of securities positions,
prime brokerage activities). In particular, these data serve as part of
the Federal Reserve's supervisory surveillance program in its liquidity
risk management area and provide timely information on firm-specific
liquidity risks during periods of stress. Analysis of systemic and
idiosyncratic liquidity risk issues are then used to inform the Federal
Reserve's supervisory processes, including the preparation of
analytical reports that detail funding vulnerabilities. Additionally,
FR 2052a will allow the Federal Reserve to monitor compliance with the
liquidity coverage ratio.
Current Actions: On December 2, 2014, the Federal Reserve published
a notice in the Federal Register (79 FR 71416) requesting public
comment for 60 days on the extension, with revision, of the FR 2052a
and FR 2052b. The comment period for this notice expired on February 2,
2015. The Federal Reserve received eight comment letters on the
proposed revisions to the FR 2052 reports: Two from trade associations,
five from U.S. banking organizations, and one from an FBO. In addition,
the Federal Reserve held several meetings with banks and trade
associations. In general, the comments focused on scope of application,
transition periods, timing of data submission, tailoring of the
requirements to certain institutions, application to firms subject to
the modified LCR, application to nonbank financial companies supervised
by the Federal Reserve, availability of a template and mapping
document, and other changes. The comments and responses are discussed
in detail below. In addition, the Federal Reserve has revised the
proposed reporting formats and instructions, as appropriate, in
response to the technical comments received.

Detailed Discussion of Public Comments

Initially Proposed FR 2052a and FR 2052b Revisions

The Federal Reserve initially proposed to revise the FR 2052a
report by: (1) Modifying the firms that are required to respond, the
applicable asset threshold, and frequency of reporting; (2) including a
data structure that subdivides three general categories of inflows,
outflows, and supplemental items into 10 distinct data tables; (3)
requiring all U.S. firms with total assets of $250 billion or more or
foreign exposure of $10 billion or more and all FBOs with total U.S.
assets of $50 billion or more to report liquidity profiles by major
currency for each material entity of the reporting institution; (4)
collecting more detail regarding securities financing transactions,
wholesale unsecured funding, deposits, loans, unfunded commitments,
collateral, derivatives, and foreign exchange transactions; and (5)
changing the structure of the collection to an XML format from a
spreadsheet format.
The Federal Reserve also initially proposed to revise the FR 2052b
reporting panel by modifying the firms that are required to respond and
the applicable threshold, and eliminating monthly reporting.

Initially Proposed Reporting Panel and Frequency of Submissions \2\
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\2\ SLHCs not subject to the LCR would not have been subject to
these reporting requirements. However, the initial proposal noted
that through future rulemakings these institutions may be subject to
some form of liquidity monitoring.
---------------------------------------------------------------------------

The scope of application, frequency, submission dates, and timing
of submission that were initially proposed are shown in the following
table.
---------------------------------------------------------------------------

\3\ For U.S. bank holidays and weekends, no positions would have
been reported. For data that would have been reported by entities in
international locations, if there were to be a local bank holiday,
those entities would have submitted data using the data from the
previous business day.
\4\ U.S. firms would have included nonbank financial companies
that the Financial Stability Oversight Council has determined under
section 113 of the Dodd-Frank (12 U.S.C. 5323) shall be supervised
by the Federal Reserve and for which such determination is still in
effect, where the Federal Reserve has applied the requirements of
the liquidity coverage ratio to such company by rule or order.
\5\ These firms would have complied with the transitions set
forth in the LCR, which requires an LCR calculation monthly starting
in January 2015. However, these firms would not have needed to
report on the FR 2052a until this reporting as-of date.
\6\ These firms would have complied with the transitions set
forth in the LCR, which requires an LCR calculation monthly starting
in January 2015. However, these firms would not have needed to
report on the FR 2052a until this reporting as-of date.
\7\ The frequency of the FR 2052a monthly report could have been
temporarily adjusted to daily on a case-by-case basis as market
conditions and supervisory needs changed to carry out effective
continuous liquidity monitoring. The Federal Reserve anticipated
frequency adjustments to be a rare occurrence.
\8\ These FBOs would have been required to have the ability to
report on each business day. If the FBO were consolidating a U.S.
firm that would independently have to report daily, then the FBO
would have had to report daily. The Federal Reserve would have
tested these FBOs for their ability to report daily.
\9\ FR 2052b reporting requirements would not have changed for
U.S. BHCs (not controlled by FBOs) with total consolidated assets of
between $10 billion and $50 billion, so the frequency and as-of date
would have been the same as it had been.

----------------------------------------------------------------------------------------------------------------
Reporter First as-of First submission Timing of
Report No. description Frequency date date \3\ submission
----------------------------------------------------------------------------------------------------------------
FR 2052a.............. U.S. firms \4\ Monthly........... \5\ 03/31/2015 04/02/2015 T+2
with total Daily............. 07/01/2015 07/03/2015 T+2
assets >=$700
billion or with
assets under
custody of >=$10
trillion.
FR 2052a.............. U.S. firms with Monthly........... \6\ 07/31/2015 08/02/2015 T+2
total assets Daily............. 07/01/2016 07/03/2016 T+2
<$700 billion
and with assets
under custody of
<$10 trillion
but, total
assets >=$250
billion or
foreign exposure
>=$10 billion.
FR 2052a \7\.......... U.S. firms with Monthly........... 01/31/2016 02/02/2016 T+2
total assets
>=$50 billion
but, total
assets <$250
billion and
foreign exposure
<$10 billion.
FR 2052a.............. FBOs with U.S. Monthly........... 03/31/2015 04/02/2015 T+2
assets >=$50 Daily............. 07/01/2015 07/03/2015 T+2
billion and U.S.
broker-dealer
assets >=$100
billion.
FR 2052a.............. FBOs with U.S. Monthly........... 01/31/2016 02/02/2016 T+2
assets >=$50 Monthly \8\....... 07/31/2016 08/02/2016 T+2
billion and U.S.
broker-dealer
assets <$100
billion.
FR 2052b \9\.......... U.S. BHCs (not Quarterly......... 12/31/2014 01/15/2015 T+15
controlled by
FBOs) with total
consolidated
assets of
between $10
billion and $50
billion.
----------------------------------------------------------------------------------------------------------------

[[Page 71797]]

For purposes of the FR 2052 reports, a U.S. firm is a top-tier bank
holding company (BHC), as that term is defined in section 2(a) of the
Bank Holding Company Act (12 U.S.C. 1841(a)) and section 225.2(c) of
the Federal Reserve's Regulation Y (12 CFR 225.2(c)), organized under
the laws of the United States and excludes any bank holding company
that is a subsidiary of a foreign banking organization (FBO). For the
purposes of the FR 2052 reports, foreign banking organization has the
same meaning as in section 211.21(o) of the Federal Reserve's
Regulation K (12 CFR 211.21(o)) and includes any U.S. bank holding
company that is a subsidiary of an FBO. The FR 2052b report only
applies to U.S. BHCs with total consolidated assets of between $10
billion and $50 billion that are not controlled by FBOs.

Scope of Application

The Federal Reserve has modified the scope of application for the
FR 2052a from the proposal, which is set forth in the table above.
These changes will not add additional burden on any firm based on the
proposed scope of application, and in some cases the changes may result
in less burden. Regarding the changes, the Federal Reserve will accord
U.S. firms and FBOs of similar size the same treatment because
similarly situated firms should be treated in a similar manner. Second,
the Federal Reserve will implement three categories of treatment for
both U.S. firms and FBOs, according to the asset size of the firm and
whether it has been identified as a LISCC firm.\10\ Firms in the first
category, U.S. firms with total consolidated assets of $700 billion or
more or with assets under custody of $10 trillion or more, and FBOs
identified as LISCC firms, will be required to submit the FR 2052a
daily. Firms in the second category will be U.S. firms with total
assets less than $700 billion and assets under custody less than $10
trillion, but total assets greater than or equal to $250 billion or
foreign exposure greater than or equal to $10 billion, and FBOs with
U.S. assets greater than or equal to $250 billion that have not been
identified as LISCC firms. Firms in the second category will be
required to submit the FR 2052a monthly. Firms in the third category
will be U.S. firms with total assets less than $250 billion and foreign
exposure less than $10 billion, but total assets greater than or equal
to $50 billion, and FBOs with U.S. assets greater than or equal to $50
billion but less than $250 billion that are not identified as LISCC
firms. Firms in the third category will be required to submit the FR
2052a monthly and will be granted additional time to submit the report.
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\10\ A list of the LISCC firms can be found at http://www.federalreserve.gov/bankinforeg/large-institution-supervision.htm.
---------------------------------------------------------------------------

As discussed further below, nonbank financial companies designated
by the Financial Stability Oversight Council (FSOC) are not included in
the reporting panel for the FR 2052a.
Firms whose asset sizes or identification as a LISCC firm causes
them to cross the threshold from the third category to the second
category, or from the second category to the first category, will be
required to meet the applicable reporting requirements of the new
category within three months of crossing the threshold. A firm whose
asset size causes it to cross the threshold to the third category will
have to meet the applicable reporting requirements within one year of
crossing the threshold.
In addition to these changes, the Federal Reserve will consider
future enhancements to the thresholds that define the applicability of
the reporting requirements that are more sensitive to liquidity risk.
Any future enhancements would be proposed and subject to comment, and
if finalized, firms whose reporting requirements change based on those
enhancements would be provided sufficient time to comply.

Transition Period

Some commenters raised concerns about whether the proposed
implementation schedule would allow sufficient time to implement
reporting requirements. One commenter noted that banking organizations
with less than $700 billion in assets and firms subject to the modified
LCR methodology by the liquidity coverage ratio in the United States,
finalized in September 2014 (LCR rule) \11\ should not be required to
report monthly on the FR 2052a before July 1, 2016. According to the
commenter, the proposed timeline would divert resources from efforts to
ensure daily LCR compliance by July 1, 2016, and potentially put those
efforts at risk. This commenter asserted that monthly reporting on the
FR 2052a cannot be equated to the monthly LCR calculations starting in
July 2015 because the FR 2052a is much more granular than is necessary
to compute the LCR and suggested that because FR 2052a reporting is
more akin to the daily LCR calculation, it should be on the same
timeline. The commenter also noted that for the same reasons and due to
their smaller size, firms subject to the modified LCR methodology
should not be required to submit reports until July 2016.
---------------------------------------------------------------------------

\11\ 79 FR 61440 (October 10, 2014).
---------------------------------------------------------------------------

Other commenters noted that banks that were not required to report
on the prior versions of the FR 2052a report should be provided more
time to comply and suggested that these organizations not be required
to comply with FR 2052a reporting until July 2016, January 2017, or
July 2017, to allow sufficient time to enhance IT and other systems. A
commenter pointed out that even if an extension was provided, these
firms could continue to report on the FR 2052b in the interim.
Similarly, one FBO commenter noted that implementing the proposed
FR 2052a with its more granular and expanded data requirements would
require considerable resources and operational effort to comply by
February 2, 2016 for certain entities that were not required to report
on the prior versions of the FR 2052a report. The commenter noted that
G-SIBs were given a two-year lead time prior to the implementation of
the FR 2052a reporting requirements and it would be appropriate for
current FR 2052b filers and new FR 2052a filers to receive similar lead
time.
One commenter noted that the implementation schedule for FBOs with
U.S. assets of $50 billion or greater and U.S. broker-dealer assets of
less than $100 billion is unrealistic. The commenter noted that
reporting challenges are magnified for FBOs that have not previously
had the experience of filing the FR 2052a or FR 2052b. The commenter
further noted that many of these firms are working to come into
compliance with the Federal Reserve Board's intermediate holding
company (IHC) requirement by July 2016. The commenter suggested that
new FBO filers start with the FR 2052b report before moving to the FR
2052a report, with implementation dates of July 2016 for the FR 2052b
and July 2017 for the FR 2052a. The commenter also noted that the LCR
rule does not apply to many of these firms and that for FR 2052b FBO
filers, no further requirement should be applied until the IHC
requirements are clarified and there is an LCR rule in place for FBOs.
Another commenter requested that firms forming IHCs have a
reasonable transition time for reporting on a consolidated basis and
legal entity basis and that entities required to consolidate pursuant
to the IHC requirement, effective July 2016, should not be required to
report on the FR 2052a beforehand.
Based on comments and analysis of the transitions and effective
dates, the Federal Reserve has extended the

[[Page 71798]]

effective dates for firms to provide more time for them to complete the
necessary system builds. The table below sets forth the revised
transitions and effective dates for the FR 2052a. The effective date
for the FR 2052b remains unchanged, which is also set forth in the
table below. Further, for the FR 2052a filers, the Federal Reserve will
require monthly submissions for all firms that are not U.S. firms with
total assets of $700 billion or more or with assets under custody of
$10 trillion or more, and FBOs identified as LISCC firms. For firms
that submit monthly reports, consistent with current supervisory
authority and processes, during periods of stress the Federal Reserve
may temporarily request the FR 2052a liquidity data to be filed on a
more frequent basis.
In addition, for U.S. firms with total consolidated assets of $700
billion or more or with assets under custody of $10 trillion or more,
and FBOs identified as LISCC firms, the Federal Reserve will collect
data as of November 30, 2015 with a request for submission on December
2, 2015. Responses to this one-time information collection are
voluntary.

Timing of Data Submission

The Federal Reserve received several comments related to the amount
of time needed to prepare reports for submission. Most commenters
disagreed with the proposal's requirement that reporting forms be
submitted within two days of the as-of date. One commenter noted that
the two-day lag does not provide enough time for quality assurance
necessary for a regulatory report. In addition, some commenters
expressed concern that the two-day lag is practically only 1.5 days
because the proposed submission time is noon. One commenter
specifically requested that advanced approaches firms with $700 billion
or more in assets be given a full two-day reporting window.
Other commenters stated that 15 days is an appropriate time period
for firms that would have been required to report monthly and for firms
that are currently reporting on the FR 2052b. One commenter suggested a
five-day lag for regional banks subject to the full LCR. Another
commenter offered that advanced approaches firms with less than $700
billion in assets and new FBO filers should have five days to submit
the reports.
As illustrated in the table below, the Federal Reserve will
implement the following transition periods for the timing of the data
submission. All firms subject to FR 2052a reporting requirements,
except for U.S. firms with total assets of $700 billion or more or with
assets under custody of $10 trillion or more, and FBOs identified as
LISCC firms, will have a T+15 submission requirement at their first
effective date. Subsequently, the timing of the submission will be
reduced until it reaches the final timing of submission requirement.
Because of the importance of timely liquidity data for the largest
firms, the final timing of submission will remain T+2 days. However,
for U.S. firms with total assets of $50 billion or more, but less than
$250 billion and foreign exposure of less than $10 billion, and FBOs
with U.S. assets of $50 billion or more and less than $250 billion that
are not identified as LISCC firms, the final timing of submission
requirement will be T+10 days due to these firms' smaller contributions
to systemic risk. Additionally, for all FR 2052a filers, as set forth
in the instructions, the Federal Reserve will change the submission
time on the submission date to 3:00 p.m. ET, which will provide firms
additional time to prepare the data submissions. The T+15 timing of
submission requirement for the FR 2052b will remain unchanged.

Final Reporting Panel and Frequency of Submissions \12\
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\12\ SLHCs that are not subject to the LCR are not subject to
these reporting requirements; however, through future rulemakings
these institutions may be required to participate in some form of
liquidity monitoring. Nonbank financial companies designated for
Federal Reserve supervision by FSOC under section 113 of the Dodd-
Frank Act (12 U.S.C. 5323), to which the Federal Reserve has applied
the requirements of the liquidity coverage ratio by rule or order
are not subject to these reporting requirements unless included in
the rule or order.
---------------------------------------------------------------------------

The Federal Reserve has modified the scope of application,
frequency, submission dates, and timing of submission as shown in the
following table in response to public comments.
---------------------------------------------------------------------------

\13\ For U.S. bank holidays and weekends, no positions should be
reported. For data reported by entities in international locations,
if there is a local bank holiday, submit data for those entities
using the data from the previous business day.
\14\ These firms must comply with the transitions set forth in
the LCR. However, these firms do not need to report on the FR 2052a
until this reporting as-of date.
\15\ These firms must comply with the transitions set forth in
the LCR, which requires an LCR calculation monthly starting in
January 2015. However, these firms do not need to report on the FR
2052a until this reporting as-of date.
\16\ Consistent with current supervisory authority and
processes, during periods of stress the Federal Reserve may
temporarily request the FR 2052a liquidity data on a more frequent
basis.
\17\ Consistent with current supervisory authority and
processes, during periods of stress the Federal Reserve may
temporarily request the FR 2052a liquidity data on a more frequent
basis.
\18\ The FR 2052b will not change for U.S. BHCs (not controlled
by FBOs) with total consolidated assets of between $10 billion and
$50 billion, so the frequency and as-of date would be the same as it
is currently.

----------------------------------------------------------------------------------------------------------------
First
Report No. Reporter Frequency First as-of submission Timing of
description date date \13\ submission
----------------------------------------------------------------------------------------------------------------
FR 2052a............... U.S. Daily............. \14\ 12/14/ 12/16/2015 T+2
firms with total 2015
assets >=$700
billion or with
>=$10 trillion in
assets under
custody, and.
FBOs
identified as
LISCC firms.
FR 2052a............... U.S. Monthly........... \15\ 01/31/ 02/15/2017 T+15
firms with total 2017
assets <$700
billion and with
<$10 trillion in
assets under
custody, but
total assets
>=$250 billion or
foreign exposure
>=$10 billion,
and.
FBOs that Monthly \16\...... 07/31/2017 08/02/2017 T+2
are not
identified as
LISCC firms, but
with U.S. assets
>=$250 billion.
FR 2052a............... U.S. Monthly........... 07/31/2017 08/15/2017 T+15
firms with total
assets >=$50
billion, but
total assets
<$250 billion and
foreign exposure
<$10 billion, and.
FBOs that Monthly \17\...... 01/31/2018 02/10/2018 T+10
are not
identified as
LISCC firms and
with U.S. assets
<$250 billion,
but U.S. assets
>=$50 billion.
FR 2052b \18\.......... U.S. BHCs Quarterly......... 12/31/2015 01/15/2016 T+15
(not controlled
by FBOs) with
total
consolidated
assets of between
$10 billion and
$50 billion.
----------------------------------------------------------------------------------------------------------------

[[Page 71799]]

Tailoring

One commenter noted that less complex financial institutions that
are not internationally active should not be held to the same reporting
standards as larger and much more complex financial institutions.
Financial institutions that are less complex do not present significant
risk to the financial system. Another commenter noted that the FR 2052a
is not tailored to take into account the risk profile of the reporting
firms. A few commenters disagreed with the requirement to provide
specific maturity data for five years. These commenters argued that the
data would not provide beneficial supervisory information. One of these
commenters suggested that only payments within one year should be
reported.
One commenter noted that disaggregating principal and interest
payments would be burdensome to respondents and unhelpful for the
Federal Reserve because this approach would not consider balance sheet
growth or other behavioral assumptions. Two commenters commented on
derivatives reporting. One noted that the granular derivatives details
required by the proposal are not necessary for calculating the LCR, and
implementing it for regional banks would be burdensome and unhelpful to
the Federal Reserve. The other commenter noted that the granularity of
derivative reporting for advanced approaches banking organizations with
less than $700 billion in assets and modified LCR banking organizations
should align with the LCR. The commenter asserted that the proposed
requirement to segregate information about payables and receivables and
provide the margin information in more granular detail than required by
the LCR would impose tremendous burden on the collateral tracking
systems of firms.
Another commenter stated that data elements related to broker-
dealers are immaterial to regional banks and these banks should not be
required to report them. The commenter stated that collecting that data
would not be helpful to the Federal Reserve and would impose a burden
on the banks.
The Federal Reserve received two comments on reporting by currency.
One commenter stated that reporting by major currency for regional
banks that are subject to the full LCR is unnecessary because their
foreign activities are limited (more akin to firms subject to the
modified LCR) and the LCR does not require it. The commenter stated
that because current systems only record in USD, additional
implementation burden would be imposed. Alternatively, the commenter
suggested establishing a threshold for reporting by major currency
other than USD only if the percent of foreign currency liabilities to
total liabilities exceeded, for example, 5 percent. Another commenter
suggested that the FR 2052a should incorporate thresholds for reporting
by major currency that align with the Basel Committee on Banking
Supervision's LCR standard's definition of ``significant currency,''
which is when the aggregated liabilities in that currency exceed 5
percent of total liabilities. The commenter explained that if this
suggestion is followed, a firm should be required to meet the threshold
for four quarters before being considered a significant currency to
prevent a currency from toggling between significant and not
significant.

The Federal Reserve notes that the FR 2052a was not designed solely
for monitoring compliance with the LCR; rather, it is a supervisory
liquidity report that also allows for monitoring compliance with the
LCR. In the context of that supervisory purpose and based on an
analysis of the reporting firms, the FR 2052a will be better tailored
to the size and complexity of the firms. First, and as mentioned above,
the timing of the data submission will be extended to T+10 days for the
smaller firms subject to FR 2052a reporting requirements. In addition,
the FR 2052a will be revised to have tailored data elements. The
granularity of maturity data will be modified for firms subject to the
FR 2052a that are not U.S. firms with total assets of $700 billion or
more or with assets under custody of $10 trillion or more or FBOs
identified as LISCC firms, with only the residual value of products
reported beyond one year. The residual value data will be required
because it is necessary to have sufficient information on the liquidity
profile of the firm. For the smaller firms subject to the FR 2052a,
certain products, such as unencumbered assets, inflows from traditional
loans, and interest and dividends payable, will be reported according
to Appendix IV-b of the instructions. Consistent with the instructions,
these firms will be permitted to report these particular products with
less granularity, even within one year.
The Federal Reserve views as inappropriate the elimination of
reporting requirements related to broker-dealer activities for an
entire segment of firms; however, where appropriate, certain products
are tailored, as detailed in the instructions. For example, for
derivatives collateral reporting, firms that do not meet a certain
threshold may use a default sub-product. Additionally, the product for
reporting interest payments may be ignored for amortizing products if
the interest is aggregated with principal and reported in the product
for principal amounts. Also, certain products which implicate inflows
that are not part of the LCR calculation may be optionally ignored,
such as sleeper collateral receivables and derivative collateral
substitution capacity. There are also certain products that are
specific to services provided by broker-dealers, so the FR 2052a will
not require those specific products to be reported unless the firm has
a significant broker-dealer.
Lastly, firms subject to FR 2052a requirements that historically
have less foreign currency exposure will only have to report in USD and
will not have to report data required by the F/X table. Thus, U.S.
firms with total assets of less than $700 billion and with assets under
custody of less than $10 trillion, but total assets of $50 billion or
more and FBOs with U.S. assets of less than $250 billion, but U.S.
assets of $50 billion or more that are not identified as LISCC firms
may report solely in USD and will not have to report data required by
the F/X table. All other firms subject to FR 2052a requirements will
report in the major currencies listed in the instructions and report
data required by the F/X table. The FR 2052b will continue to be
reported solely in USD.

Modified LCR

The Federal Reserve received the following comments specific to
reporting by institutions subject to the modified LCR: (1) The proposed
FR 2052a report materially expands the required time period bucketing
to include 60 days of daily contractual cash flows and four periods of
weekly contractual cash flows requiring fundamental changes to data,
systems, and processes that have already been developed to support the
FR 2052a and LCR calculations that extract data based on monthly cash
flows; (2) the 60-day daily period maturity buckets go beyond the 30-
day period that is necessary to compute the LCR and daily time bucket
should only be 30 days for firms subject to the full LCR and should not
exist for firms subject to the modified LCR; (3) maturity buckets for
firms subject to the modified LCR should have no more granularity than
monthly, which is what is needed for the LCR; (4) daily maturity
buckets for days 31-60 should be

[[Page 71800]]

phased in over time because systems have already been developed for the
LCR's 30-day window; (5) the FR 2052a does not align with the modified
LCR, requiring a parent-only report whereas a consolidated figure is
required for the LCR; (6) firms subject to the modified LCR should be
required to report only on the FR 2052b or an amended FR 2052b or the
FR 2052a should be tailored to regional banks; and (7) required
reporting for entities should be consistent with the requirements of
the final LCR rule for modified LCR BHCs, i.e., global consolidated
entity only, since modifying systems to include other reporting levels
pose a significant operational task because systems and processes were
built to support the calculation at the global consolidated entity.
In response to the comments on the reporting requirements for firms
subject to the modified LCR, as mentioned above, the Federal Reserve
notes that the FR 2052a was not designed solely for monitoring
compliance with the LCR; rather, it is a supervisory liquidity report
that also allows for monitoring compliance with the LCR. For that
reason, there are products and maturity buckets beyond what is
necessary for an LCR calculation. All of the products and maturity
buckets are required to appropriately monitor liquidity risk within a
firm subject to the FR 2052a reporting requirement. For example, to
understand a firm's liquidity risk profile, it is necessary to have
information beyond the LCR's 30-day time horizon and on a parent-only
basis, in addition to the consolidated holding company. However, as
described above, for the smaller firms subject to the FR 2052a, the
Federal Reserve will allow less granular maturity bucketing for certain
products where receiving less maturity information is appropriate, such
as unencumbered assets, inflows from traditional loans, and interest
and dividends. Furthermore, as noted above, the Federal Reserve will
extend the transitions and effective dates to provide sufficient time
for system enhancements to meet the increased data requirements.

Nonbank Financial Companies

One commenter noted that nonbank financial companies designated by
FSOC for supervision by the Board are implicated as covered in the FR
2052a update notice. The commenter requested that these companies have
an opportunity to comment on the FR 2052a after being designated but
before imposition of the LCR requirement and filing on the FR 2052a.
Non-bank financial companies designated by FSOC for supervision by
the Federal Reserve will not be automatically subject to FR 2052a
reporting requirements based on being subject to the LCR. Because these
companies may become subject to the LCR by rule or order, the Federal
Reserve believes it is appropriate to subject them to supervisory
reporting requirements also by rule or order to ensure that such
requirements are appropriate for the specific nonbank financial
company.

Availability of Template or Mapping Document

The Federal Reserve proposed to require the data in XML format. Two
commenters requested that the Federal Reserve make available an Excel
template to facilitate internal review of the data submission.
In addition, the Federal Reserve requested comment on whether it
should publish a description of how the FR 2052a data will be used to
monitor LCR compliance. Several commenters agreed that the Federal
Reserve should publish a description and specifically requested that
the Federal Reserve should provide a reporting template that would
illustrate how to calculate the reporting entity's LCR.
In response to comments, the Federal Reserve has revised the FR
2052a instructions to include an appendix that maps the provisions of
the LCR to the unique data identifiers that can be used to calculate an
LCR. The Federal Reserve will not provide an Excel or other template,
as firms subject to FR 2052a reporting requirements may, based on the
description of data tables in the instructions and the appendix
describing an LCR calculation, develop their own MIS to analyze FR
2052a data. This mapping document is not a part of the LCR rule or a
component of the FR 2052a report. Firms may use this mapping document
solely at their discretion.

Other Changes

One commenter provided an appendix describing certain technical
issues with the calculation of the LCR using FR 2052a data. The Federal
Reserve has resolved these issues through the appendix to the
instructions that describes an LCR calculation by mapping the LCR
provisions to the FR 2052a data. Another commenter noted that
``material legal entity'' should be defined more clearly, as entities
falling under the definition would be an additional reporting entity.
The Federal Reserve revised the instructions to provide additional
information about what constitutes a material entity. In addition, the
Federal Reserve will implement a supervisory process to determine which
entities are deemed material. As described in the instructions, the
Federal Reserve will consider characteristics of the entity, such as
size, complexity, business activities, and overall risk profile.
Another commenter noted that collateral value and collateral class
fields should be better explained, in particular with respect to non-
investment securities collateral, cross collateralization, and when
collateral is all business assets. The Federal Reserve finalized as
initially proposed because Appendix III to the instructions includes
all collateral classes that are relevant for this report.
The proposal would have required firms submitting the FR 2052a
report to retain data for six months. The Federal Reserve will require
firms to retain that data for one year after it is submitted because
the Federal Reserve believes that one year is an appropriate amount of
data in the event a firm needs to review previously submitted data.

Paperwork Reduction Act

In accordance with section 3512 of the Paperwork Reduction Act of
1995 (44 U.S.C. 3501-3521), the Board may not conduct or sponsor, and a
respondent is not required to respond to, an information collection
unless it displays a currently valid OMB control number. The OMB
control number is 7100-0361. The Board reviewed the proposed
information collection under authority delegated to the Board by OMB.
The FR 2052 reporting forms are a part of the Federal Reserve's
supervisory surveillance program in liquidity risk management. The
information collected on the FR 2052 reporting forms will provide
timely information on firm-specific liquidity risks during periods of
stress and will be used to monitor the overall liquidity profile of
institutions supervised by the Federal Reserve. These data provide
detailed information on the liquidity risks within different business
lines of these firms. In addition the information collected on the FR
2052a will be used to monitor compliance with the LCR by firms subject
to the rule. The Federal Reserve will use this data to identify and
analyze systemic and idiosyncratic liquidity risk issues at reporting
firms and across the financial system and will also prepare analytical
reports that detail funding vulnerabilities at reporting firms.
The Board's collection of information on forms FR 2052a and FR
2052b is

[[Page 71801]]

mandatory, with voluntary early reporting on FR 2052a for U.S. firms
with total consolidated assets of $700 billion or more or with assets
under custody of $10 trillion or more, and FBOs identified as LISCC
firms, and is authorized pursuant to section 5 of the Bank Holding
Company Act (12 U.S.C. 1844), which authorizes the Federal Reserve to
conduct information collections with regard to the supervision of BHCs,
section 8 of the International Banking Act (12 U.S.C. 3106), which
subjects FBOs to the provision of the Bank Holding Company Act, and
section 165 of the Dodd-Frank Act (12 U.S.C. 5365), which requires the
Federal Reserve to ensure that certain BHCs and nonbank financial
companies supervised by the Federal Reserve are subject to enhanced
liquidity requirements. As these data are collected as part of the
supervisory process, they are subject to confidential treatment under
exemption 8 of the Freedom of Information Act (5 U.S.C. 552(b)(8)). In
addition, the institution information provided by each respondent will
not be otherwise available to the public and is entitled to
confidential treatment under the authority of exemption 4 of the
Freedom of Information Act (5 U.S.C. 552(b)(4)), which protects from
disclosure trade secrets and commercial or financial information.
The Board estimates that the burden of reporting on the revised FR
2052a will be between 120 and 400 hours per response for each reporting
form. The Board estimates that the one-time implementation burden will
be approximately 400 hours, which includes both the building of systems
necessary to gather and report the data, as well as training of
responsible staff. For firms that are required to report daily, the
Board estimates that the burden for each response will be approximately
220 hours, while firms that required to report monthly will spend
approximately 120 hours to prepare each response. The Board estimates
that the burden of reporting on the revised FR 2052b will be
approximately 60 hours per response for each reporting firm.

Regulatory Flexibility Act

The Board has considered the potential impact of the final rule on
small companies in accordance with the Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.). Based on its analysis and for the reasons
stated below, the Board believes that the final rule will not have a
significant economic impact on a substantial number of small entities.
Nevertheless, the Board is providing a final regulatory flexibility
analysis with respect to the FR 2052 reporting forms.
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 $550 million
or less (a small banking organization). As discussed above, the
information collected on the FR 2052 reporting forms will be used to
monitor the overall liquidity profile of large banking organizations
supervised by the Board. These forms would collect information on the
liquidity risks within different lines of business of these
organizations. Firms would be required to report either daily, monthly,
or quarterly depending on their size and complexity. The Board did not
receive any comments on the proposed information collection notice
regarding its impact on small banking organizations.
The FR 2052 reporting forms will apply to BHCs with total
consolidated assets of $10 billion or more and to FBOs with U.S. assets
of $50 billion or more. The FR 2052 reporting forms do not apply to
small banking organizations, so there would be no projected compliance
requirements for small banking organizations.
The Board believes that the final information collection will not
have a significant impact on small banking organizations supervised by
the Board and therefore believes that there are no significant
alternatives that would reduce the economic impact on small banking
organizations supervised by the Board.

Board of Governors of the Federal Reserve System, November 12,
2015.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2015-29348 Filed 11-16-15; 8:45 am]
BILLING CODE 6210-01-P

Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices 71795

Station, FCC Form 301; FCC Form 2100, FEDERAL RESERVE SYSTEM less than $700 billion and with assets
Application for Media Bureau Audio under custody of less than $10 trillion,
and Video Service Authorization, Agency Information Collection but total assets of $250 billion or more
Schedule A; 47 C.F.R section Activities: Announcement of Board or foreign exposure of $10 billion or
73.3700(b)(1) and (2), Post Auction Approval Under Delegated Authority more; U.S. firms with total assets of $50
Licensing. and Submission to OMB billion or more but total assets of less
Form No.: FCC Form 2100, Schedule AGENCY: Board of Governors of the than $250 billion and foreign exposure
A. Federal Reserve System. of less than $10 billion; Foreign banking
Type of Review: Revision of a organizations (FBOs) that are identified
SUMMARY: Notice is hereby given of the
currently approved information as LISCC firms; FBOs with U.S. assets
final approval of a proposed information of $250 billion or more that are not
collection. collection by the Board of Governors of identified as LISCC firms; and FBOs
Respondents: Business or other for- the Federal Reserve System (Board) with U.S. assets of $50 billion or more
profit entities; Not for profit institutions; under Office of Management and Budget but U.S. assets less than $250 billion
State, local or Tribal Government. (OMB) delegated authority. Board- that are not identified as LISCC firms.
Number of Respondents and approved collections of information are • FR 2052b: U.S. bank holding
Responses: 3,080 respondents and 6,516 incorporated into the official OMB companies (BHCs) not controlled by
responses. inventory of currently approved FBOs with total consolidated assets of
collections of information. Copies of the $10 billion or more but less than $50
Estimated Time per Response: 1–6.25
Paperwork Reduction Act Submission, billion
hours.
supporting statement and approved Estimated annual reporting hours: FR
Frequency of Response: One-time collection of information instruments
reporting requirement; On occasion 2052a: 714,480 hours; FR 2052b: 12,480
are placed into OMB’s public docket hours.1
reporting requirement; Third party files. The Federal Reserve may not
disclosure requirement. Estimated average hours per response:
conduct or sponsor, and the respondent FR 2052a: ranges between 120 hours
Obligation to Respond: Required to is not required to respond to, an and 400 hours; FR 2052b: 60 hours.
obtain or retain benefits. The statutory information collection that has been Number of respondents: FR 2052a: 48;
authority for this collection is contained extended, revised, or implemented on or FR 2052b: 52.
in Sections 154(i), 303 and 308 of the after October 1, 1995, unless it displays General description of report: These
Communications Act of 1934, as a currently valid OMB control number. reports are authorized pursuant to
amended. FOR FURTHER INFORMATION CONTACT: section 5 of the Bank Holding Company
Total Annual Burden: 15,287 hours. Federal Reserve Board Clearance Act (12 U.S.C. 1844), section 8 of the
Annual Cost Burden: $62,775,788. Officer—Nuha Elmaghrabi—Office of International Banking Act (12 U.S.C.
the Chief Data Officer, Board of 3106) and section 165 of the Dodd-
Privacy Act Impact Assessment: No
Governors of the Federal Reserve Frank Act (12 U.S.C. 5365) and are
impact(s).
System, Washington, DC 20551 (202) mandatory, with voluntary early
Nature and Extent of Confidentiality: 452–3829. Telecommunications Device reporting on FR 2052a for U.S. firms
There is no need for confidentiality with for the Deaf (TDD) users may contact with total consolidated assets of $700
this collection of information. (202) 263–4869, Board of Governors of billion or more or with assets under
Needs and Uses: The collection is the Federal Reserve System, custody of $10 trillion or more, and
being made to the Office of Management Washington, DC 20551. FBOs identified as LISCC firms. Section
(OMB) for the approval of information OMB Desk Officer—Shagufta 5(c) of the Bank Holding Company Act
collection requirements contained in the Ahmed—Office of Information and authorizes the Board to require BHCs to
Commission’s Incentive Auction Order, Regulatory Affairs, Office of submit reports to the Board regarding
FCC 14–50, which adopted rules for Management and Budget, New their financial condition. Section 8(a) of
holding an Incentive Auction, as Executive Office Building, Room 10235, the International Banking Act subjects
required by the Middle Class Tax Relief 725 17th Street NW., Washington, DC FBOs to the provisions of the Bank
and Job Creation Act of 2012 (Spectrum 20503. Holding Company Act. Section 165 of
Act). The information gathered in this Final approval under OMB delegated the Dodd-Frank Act requires the Board
collection will be used to allow full- authority of the extension for three to establish prudential standards for
power television broadcast stations that years, with revision, of the following certain BHCs and FBOs; these standards
are relocated to a new channel following information collection: include liquidity requirements. The
the Federal Communications Report titles: The Complex Institution individual financial institution
Commission’s Incentive Auction to Liquidity Monitoring Report (FR 2052a) information provided by each
submit a construction application to and the Liquidity Monitoring Report (FR respondent will be accorded
build new facilities to operate on their 2052b). confidential treatment under exemption
post-auction channel. Form 2100, Agency form numbers: FR 2052a and 8 of the Freedom of Information Act (5
Schedule A is also used to apply for FR 2052b. U.S.C. 552(b)(8)). In addition, the
authority to construct a new commercial OMB control number: 7100–0361.
institution information provided by
AM, FM, or TV broadcast station and to Frequency: FR 2052a: Daily or
each respondent will not be otherwise
make changes to existing facilities of monthly; FR 2052b: quarterly.
available to the public and is entitled to
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such a station. Respondents:
• FR 2052a: Bank holding companies confidential treatment under the
Federal Communications Commission. and savings and loan holding authority of exemption 4 of the Freedom
Gloria J. Miles, companies subject to the liquidity of Information Act (5 U.S.C. 552(b)(4)),
Federal Register Liaison Officer, Office of the coverage ratio (together, U.S. firms) with 1 With the proposed revisions, the paperwork
Secretary. total assets of $700 billion or more or burden for 2015 is estimated to initially decrease,
[FR Doc. 2015–29238 Filed 11–16–15; 8:45 am] with $10 trillion or more in assets under then incrementally increase for 2016, 2017, and
BILLING CODE 6712–01–P custody; U.S. firms with total assets of 2018, for an annual net increase of 266,480 hours.

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For purposes of the FR 2052 reports, equal to $50 billion but less than $250 modified LCR methodology should not
a U.S. firm is a top-tier bank holding billion that are not identified as LISCC be required to submit reports until July
company (BHC), as that term is defined firms. Firms in the third category will be 2016.
in section 2(a) of the Bank Holding required to submit the FR 2052a Other commenters noted that banks
Company Act (12 U.S.C. 1841(a)) and monthly and will be granted additional that were not required to report on the
section 225.2(c) of the Federal Reserve’s time to submit the report. prior versions of the FR 2052a report
Regulation Y (12 CFR 225.2(c)), As discussed further below, nonbank should be provided more time to
organized under the laws of the United financial companies designated by the comply and suggested that these
States and excludes any bank holding Financial Stability Oversight Council organizations not be required to comply
company that is a subsidiary of a foreign (FSOC) are not included in the reporting with FR 2052a reporting until July 2016,
banking organization (FBO). For the panel for the FR 2052a. January 2017, or July 2017, to allow
purposes of the FR 2052 reports, foreign Firms whose asset sizes or sufficient time to enhance IT and other
banking organization has the same identification as a LISCC firm causes systems. A commenter pointed out that
meaning as in section 211.21(o) of the them to cross the threshold from the even if an extension was provided, these
Federal Reserve’s Regulation K (12 CFR third category to the second category, or firms could continue to report on the FR
211.21(o)) and includes any U.S. bank from the second category to the first 2052b in the interim.
holding company that is a subsidiary of category, will be required to meet the Similarly, one FBO commenter noted
an FBO. The FR 2052b report only applicable reporting requirements of the that implementing the proposed FR
applies to U.S. BHCs with total new category within three months of 2052a with its more granular and
consolidated assets of between $10 crossing the threshold. A firm whose expanded data requirements would
billion and $50 billion that are not asset size causes it to cross the threshold require considerable resources and
controlled by FBOs. to the third category will have to meet operational effort to comply by February
the applicable reporting requirements 2, 2016 for certain entities that were not
Scope of Application within one year of crossing the required to report on the prior versions
The Federal Reserve has modified the threshold. of the FR 2052a report. The commenter
scope of application for the FR 2052a In addition to these changes, the noted that G–SIBs were given a two-year
from the proposal, which is set forth in Federal Reserve will consider future lead time prior to the implementation of
the table above. These changes will not enhancements to the thresholds that the FR 2052a reporting requirements
add additional burden on any firm define the applicability of the reporting and it would be appropriate for current
based on the proposed scope of requirements that are more sensitive to FR 2052b filers and new FR 2052a filers
application, and in some cases the liquidity risk. Any future enhancements to receive similar lead time.
changes may result in less burden. would be proposed and subject to One commenter noted that the
Regarding the changes, the Federal comment, and if finalized, firms whose implementation schedule for FBOs with
Reserve will accord U.S. firms and FBOs reporting requirements change based on U.S. assets of $50 billion or greater and
of similar size the same treatment those enhancements would be provided U.S. broker-dealer assets of less than
because similarly situated firms should sufficient time to comply. $100 billion is unrealistic. The
be treated in a similar manner. Second, commenter noted that reporting
Transition Period
the Federal Reserve will implement challenges are magnified for FBOs that
three categories of treatment for both Some commenters raised concerns have not previously had the experience
U.S. firms and FBOs, according to the about whether the proposed of filing the FR 2052a or FR 2052b. The
asset size of the firm and whether it has implementation schedule would allow commenter further noted that many of
been identified as a LISCC firm.10 Firms sufficient time to implement reporting these firms are working to come into
in the first category, U.S. firms with requirements. One commenter noted compliance with the Federal Reserve
total consolidated assets of $700 billion that banking organizations with less Board’s intermediate holding company
or more or with assets under custody of than $700 billion in assets and firms (IHC) requirement by July 2016. The
$10 trillion or more, and FBOs subject to the modified LCR commenter suggested that new FBO
identified as LISCC firms, will be methodology by the liquidity coverage filers start with the FR 2052b report
required to submit the FR 2052a daily. ratio in the United States, finalized in before moving to the FR 2052a report,
Firms in the second category will be September 2014 (LCR rule) 11 should not with implementation dates of July 2016
U.S. firms with total assets less than be required to report monthly on the FR for the FR 2052b and July 2017 for the
$700 billion and assets under custody 2052a before July 1, 2016. According to FR 2052a. The commenter also noted
less than $10 trillion, but total assets the commenter, the proposed timeline that the LCR rule does not apply to
greater than or equal to $250 billion or would divert resources from efforts to many of these firms and that for FR
foreign exposure greater than or equal to ensure daily LCR compliance by July 1, 2052b FBO filers, no further
$10 billion, and FBOs with U.S. assets 2016, and potentially put those efforts at requirement should be applied until the
greater than or equal to $250 billion that risk. This commenter asserted that IHC requirements are clarified and there
have not been identified as LISCC firms. monthly reporting on the FR 2052a is an LCR rule in place for FBOs.
Firms in the second category will be cannot be equated to the monthly LCR Another commenter requested that
required to submit the FR 2052a calculations starting in July 2015 firms forming IHCs have a reasonable
monthly. Firms in the third category because the FR 2052a is much more transition time for reporting on a
will be U.S. firms with total assets less granular than is necessary to compute consolidated basis and legal entity basis
mstockstill on DSK4VPTVN1PROD with NOTICES

than $250 billion and foreign exposure the LCR and suggested that because FR and that entities required to consolidate
less than $10 billion, but total assets 2052a reporting is more akin to the daily pursuant to the IHC requirement,
greater than or equal to $50 billion, and LCR calculation, it should be on the effective July 2016, should not be
FBOs with U.S. assets greater than or same timeline. The commenter also required to report on the FR 2052a
noted that for the same reasons and due beforehand.
10 A list of the LISCC firms can be found at to their smaller size, firms subject to the Based on comments and analysis of
http://www.federalreserve.gov/bankinforeg/large- the transitions and effective dates, the
institution-supervision.htm. 11 79 FR 61440 (October 10, 2014). Federal Reserve has extended the

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71798 Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices

effective dates for firms to provide more submission. Most commenters disagreed firms, will have a T+15 submission
time for them to complete the necessary with the proposal’s requirement that requirement at their first effective date.
system builds. The table below sets reporting forms be submitted within two Subsequently, the timing of the
forth the revised transitions and days of the as-of date. One commenter submission will be reduced until it
effective dates for the FR 2052a. The noted that the two-day lag does not reaches the final timing of submission
effective date for the FR 2052b remains provide enough time for quality requirement. Because of the importance
unchanged, which is also set forth in the assurance necessary for a regulatory of timely liquidity data for the largest
table below. Further, for the FR 2052a report. In addition, some commenters firms, the final timing of submission
filers, the Federal Reserve will require expressed concern that the two-day lag will remain T+2 days. However, for U.S.
monthly submissions for all firms that is practically only 1.5 days because the firms with total assets of $50 billion or
are not U.S. firms with total assets of proposed submission time is noon. One more, but less than $250 billion and
$700 billion or more or with assets commenter specifically requested that foreign exposure of less than $10
under custody of $10 trillion or more, advanced approaches firms with $700 billion, and FBOs with U.S. assets of
and FBOs identified as LISCC firms. For billion or more in assets be given a full $50 billion or more and less than $250
firms that submit monthly reports, two-day reporting window. billion that are not identified as LISCC
consistent with current supervisory Other commenters stated that 15 days firms, the final timing of submission
authority and processes, during periods is an appropriate time period for firms requirement will be T+10 days due to
of stress the Federal Reserve may that would have been required to report these firms’ smaller contributions to
temporarily request the FR 2052a monthly and for firms that are currently systemic risk. Additionally, for all FR
liquidity data to be filed on a more reporting on the FR 2052b. One
2052a filers, as set forth in the
frequent basis. commenter suggested a five-day lag for
instructions, the Federal Reserve will
In addition, for U.S. firms with total regional banks subject to the full LCR.
change the submission time on the
consolidated assets of $700 billion or Another commenter offered that
submission date to 3:00 p.m. ET, which
more or with assets under custody of advanced approaches firms with less
will provide firms additional time to
$10 trillion or more, and FBOs than $700 billion in assets and new FBO
prepare the data submissions. The T+15
identified as LISCC firms, the Federal filers should have five days to submit
the reports. timing of submission requirement for
Reserve will collect data as of November the FR 2052b will remain unchanged.
30, 2015 with a request for submission As illustrated in the table below, the
on December 2, 2015. Responses to this Federal Reserve will implement the Final Reporting Panel and Frequency of
one-time information collection are following transition periods for the Submissions 12
voluntary. timing of the data submission. All firms
subject to FR 2052a reporting The Federal Reserve has modified the
Timing of Data Submission requirements, except for U.S. firms with scope of application, frequency,
The Federal Reserve received several total assets of $700 billion or more or submission dates, and timing of
comments related to the amount of time with assets under custody of $10 trillion submission as shown in the following
needed to prepare reports for or more, and FBOs identified as LISCC table in response to public comments.

First
First as-of Timing of
Report No. Reporter description Frequency submission
date submission
date 13

FR 2052a .......... • U.S. firms with total assets ≥$700 billion or with ≥$10 Daily ............ 14 12/14/2015 12/16/2015 T+2
trillion in assets under custody, and.
• FBOs identified as LISCC firms ......................................
FR 2052a .......... • U.S. firms with total assets <$700 billion and with <$10 Monthly ........ 15 01/31/2017 02/15/2017 T+15
trillion in assets under custody, but total assets ≥$250
billion or foreign exposure ≥$10 billion, and.
• FBOs that are not identified as LISCC firms, but with Monthly 16 .... 07/31/2017 08/02/2017 T+2
U.S. assets ≥$250 billion.
FR 2052a .......... • U.S. firms with total assets ≥$50 billion, but total assets Monthly ........ 07/31/2017 08/15/2017 T+15
<$250 billion and foreign exposure <$10 billion, and.
• FBOs that are not identified as LISCC firms and with Monthly 17 .... 01/31/2018 02/10/2018 T+10
U.S. assets <$250 billion, but U.S. assets ≥$50 billion.
FR 2052b 18 ...... • U.S. BHCs (not controlled by FBOs) with total consoli- Quarterly ..... 12/31/2015 01/15/2016 T+15
dated assets of between $10 billion and $50 billion.

12 SLHCs that are not subject to the LCR are not entities in international locations, if there is a local 16 Consistent with current supervisory authority

subject to these reporting requirements; however, bank holiday, submit data for those entities using and processes, during periods of stress the Federal
through future rulemakings these institutions may the data from the previous business day. Reserve may temporarily request the FR 2052a
be required to participate in some form of liquidity 14 These firms must comply with the transitions liquidity data on a more frequent basis.
mstockstill on DSK4VPTVN1PROD with NOTICES

monitoring. Nonbank financial companies 17 Consistent with current supervisory authority
designated for Federal Reserve supervision by set forth in the LCR. However, these firms do not
need to report on the FR 2052a until this reporting and processes, during periods of stress the Federal
FSOC under section 113 of the Dodd-Frank Act (12
U.S.C. 5323), to which the Federal Reserve has as-of date. Reserve may temporarily request the FR 2052a
applied the requirements of the liquidity coverage 15 These firms must comply with the transitions liquidity data on a more frequent basis.
18 The FR 2052b will not change for U.S. BHCs
ratio by rule or order are not subject to these set forth in the LCR, which requires an LCR
reporting requirements unless included in the rule (not controlled by FBOs) with total consolidated
calculation monthly starting in January 2015.
or order. assets of between $10 billion and $50 billion, so the
However, these firms do not need to report on the
13 For U.S. bank holidays and weekends, no frequency and as-of date would be the same as it
FR 2052a until this reporting as-of date.
positions should be reported. For data reported by is currently.

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Document Created: 2015-12-14 14:01:12
Document Modified: 2015-12-14 14:01:12

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		Notices
Action		On December 2, 2014, the Federal Reserve published a notice in the Federal Register (79 FR 71416) requesting public comment for 60 days on the extension, with revision, of the FR 2052a and FR 2052b. The comment period for this notice expired on February 2, 2015. The Federal Reserve received eight comment letters on the proposed revisions to the FR 2052 reports: Two from trade associations, five from U.S. banking organizations, and one from an FBO. In addition, the Federal Reserve held several meetings with banks and trade associations. In general, the comments focused on scope of application, transition periods, timing of data submission, tailoring of the requirements to certain institutions, application to firms subject to the modified LCR, application to nonbank financial companies supervised by the Federal Reserve, availability of a template and mapping document, and other changes. The comments and responses are discussed in detail below. In addition, the Federal Reserve has revised the proposed reporting formats and instructions, as appropriate, in response to the technical comments received.
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. Telecommunications Device for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors of the Federal Reserve System, Washington, DC 20551.
FR Citation		80 FR 71795