80 FR 77631 - Agency Information Collection Activities: Proposed Information Collection Revision; Comment Request (3064-0189)

FEDERAL DEPOSIT INSURANCE CORPORATION

Federal Register Volume 80, Issue 240 (December 15, 2015)

The Federal Deposit Insurance Corporation (``FDIC'') invites the general public and other Federal agencies to take this opportunity to comment on a revision of a continuing information collection, titled, ``Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions with Total Consolidated Assets of $50 Billion or More under the Dodd-Frank Wall Street Reform and Consumer Protection Act,'' (3064-0189), as required by the Paperwork Reduction Act of 1995.

[Federal Register Volume 80, Number 240 (Tuesday, December 15, 2015)]
[Notices]
[Pages 77631-77633]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31492]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Proposed Information 
Collection Revision; Comment Request (3064-0189)

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

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SUMMARY: The Federal Deposit Insurance Corporation (``FDIC'') invites 
the general public and other Federal agencies to take this opportunity 
to comment on a revision of a continuing information collection, 
titled, ``Company-Run Annual Stress Test Reporting Template and 
Documentation for Covered Institutions with Total Consolidated Assets 
of $50 Billion or More under the Dodd-Frank Wall Street Reform and 
Consumer Protection Act,'' (3064-0189), as required by the Paperwork 
Reduction Act of 1995.

DATES: Comments must be received by February 16, 2016.

ADDRESSES: You may submit written comments by any of the following 
methods:
     Agency Web site: http://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC 
Web site.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include ``Annual Stress Test 
Reporting Template and Documentation for Covered Institutions with 
Total Consolidated Assets of $50 Billion or More'' on the subject line 
of the message.
     Mail: Gary A. Kuiper, Legal Division, Attention: Comments, 
FDIC, 550 17th Street NW., MB-3016, Washington, DC 20429.
     Hand Delivery/Courier: Guard station at the rear of the 
550 17th Street Building (located on F Street) on business days between 
7:00 a.m. and 5:00 p.m.
     Public Inspection: All comments received will be posted 
without change to http://www.fdic.gov/regulations/laws/federal/ 
including any personal information provided.
    Additionally, you may send a copy of your comments: By mail to the 
U.S. Office of Management and Budget, 725 17th Street NW., #10235, 
Washington, DC 20503 or by facsimile to 202.395.6974, Attention: 
Federal Banking Agency Desk Officer.

FOR FURTHER INFORMATION CONTACT: You can request additional information 
from Gary Kuiper, 202.898.3877, or Manny Cabeza, 202.898.3767, Legal 
Division, Federal Deposit Insurance Corporation, 550 17th Street NW., 
MB-3016 Washington, DC 20429. In addition, copies of the templates 
referenced in this notice can be found on the FDIC's Web site (http://www.fdic.gov/regulations/laws/federal/).

SUPPLEMENTARY INFORMATION: The FDIC is requesting comment on the 
following changes to the information collection:
    Title: Company-Run Annual Stress Test Reporting Template and 
Documentation for Covered Institutions with Total Consolidated Assets 
of $50 Billion or More under the Dodd-Frank

[[Page 77632]]

Wall Street Reform and Consumer Protection Act.
    OMB Control Number: 3064-0189.
    Description: Section 165(i)(2) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act \1\ (``Dodd-Frank Act'') requires certain 
financial companies, including state nonmember banks and state savings 
associations, to conduct annual stress tests \2\ and requires the 
primary financial regulatory agency \3\ of those financial companies to 
issue regulations implementing the stress test requirements.\4\ A state 
nonmember bank or state savings association is a ``covered bank'' and 
therefore subject to the stress test requirements if its total 
consolidated assets are more than $10 billion. Under section 165(i)(2), 
a covered bank is required to submit to the Board of Governors of the 
Federal Reserve System (``Board'') and to its primary financial 
regulatory agency a report at such time, in such form, and containing 
such information as the primary financial regulatory agency shall 
require.\5\
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    \1\ Public Law 111-203, 124 Stat. 1376 (July 21, 2010).
    \2\ 12 U.S.C. 5365(i)(2)(A).
    \3\ 12 U.S.C. 5301(12).
    \4\ 12 U.S.C. 5365(i)(2)(C).
    \5\ 12 U.S.C. 5365(i)(2)(B).
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    On October 15, 2012, the FDIC published in the Federal Register a 
final rule implementing the section 165(i)(2) annual stress test 
requirement.\6\ The final rule requires covered banks to meet specific 
reporting requirements under section 165(i)(2). In 2012, the FDIC first 
implemented the reporting templates for covered banks with total 
consolidated assets of $50 billion or more and provided instructions 
for completing the reports.\7\ This information collection notice 
describes revisions by the FDIC to the relevant reporting templates and 
related instructions, as well as required information. The information 
contained in these information collections may be given confidential 
treatment to the extent allowed by law (5 U.S.C. 552(b)(4)).
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    \6\ 77 FR 62417(October 15, 2012).
    \7\ 77 FR 52719 (August 30, 2012) and 77 FR 70435 (November 26, 
2012). The most recent revisions to the reporting templates and 
related instructions were made in 2014. See 79 FR 58780 (September 
30, 2014) and 79 FR 75152 (December 17, 2014)
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    Consistent with past practice, the FDIC intends to use the data 
collected to assess the reasonableness of the stress test results of 
covered banks and to provide forward-looking information to the FDIC 
regarding a covered institution's capital adequacy. The FDIC also may 
use the results of the stress tests to determine whether additional 
analytical techniques and exercises could be appropriate to identify, 
measure, and monitor risks at the covered bank. The stress test results 
are expected to support ongoing improvement in a covered bank's stress 
testing practices with respect to its internal assessments of capital 
adequacy and overall capital planning.
    The FDIC recognizes that many covered banks with total consolidated 
assets of $50 billion or more are required to submit reports using the 
Board's Comprehensive Capital Analysis and Review (``CCAR'') reporting 
form, FR Y-14A. The FDIC also recognizes the Board has modified the FR 
Y-14A, and the FDIC will keep its reporting requirements as similar as 
possible with the Board's FR Y-14A in order to minimize burden on 
affected institutions. Therefore, the FDIC is revising its reporting 
requirements to remain consistent with the Board's FR Y-14A for covered 
banks with total consolidated assets of $50 billion or more.

Proposed Revisions to Reporting Templates for Institutions With $50 
Billion or More in Assets; Other Reporting Template and Instruction 
Changes

    The proposed revisions to the DFAST-14A reporting templates consist 
of clarifying instructions, adding data items, deleting data items, and 
redefining existing data items. The proposed revisions also include a 
shift of the as-of date in accordance with modifications to the FDIC's 
stress testing rule.\8\ These revisions also reflect the implementation 
of the final Basel III regulatory capital rule. On July 9, 2013, the 
FDIC approved an interim final rule that will revise and replace the 
FDIC's risk-based and leverage capital requirements to be consistent 
with agreements reached by the Basel Committee on Banking Supervision 
in ``Basel III: A Global Regulatory Framework for More Resilient Banks 
and Banking Systems'' (Basel III).\9\ The final rule was published in 
the Federal Register on April 14, 2014 (``Revised Capital 
Framework'').\10\ The revisions include implementation of a new 
definition of regulatory capital, a new common equity tier 1 minimum 
capital requirement, a higher minimum tier 1 capital requirement, and, 
for banking organizations subject to the Advanced Approaches capital 
rules, a supplementary leverage ratio that incorporates a broader set 
of exposures in the denominator measure. In addition, the rule will 
amend the methodologies for determining risk weighted assets. All 
banking organizations that are not subject to the Advanced Approaches 
Rule were required to comply with the Revised Capital Framework, as of 
January 1, 2015.
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    \8\ See 79 FR 69365 (November 21, 2014).
    \9\ 78 FR 55340 (September 10, 2013).
    \10\ 79 FR 20754 (April 14, 2014).
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    The proposed changes would (1) increase consistency between the 
DFAST-14A with the FR Y-14A, CALL Report, FFIEC 101, and FFIEC 102; (2) 
remove the requirement to calculate tier 1 common capital and the tier 
1 common ratio; and (3) shift the as-of dates by one quarter in 
accordance with the modifications to the stress test rules. 
Furthermore, the FDIC understands that the Board is currently 
collecting information for the Summary Schedule via XML technology, and 
the FDIC would use a similar format to enhance consistency and reduce 
regulatory burden. Technical details on these forms would be provided 
separately.

Schedule A (Summary)--A.1.c.1 (General RWA)

    This schedule would be removed in accordance with the proposed 
revisions to eliminate use of the tier 1 common ratio, effective for 
the 2016 DFAST submission.

Schedule A (Summary)--Revisions to Schedule A.1.c.2 (Standardized RWA)

    This schedule would be modified to increase consistency with the 
FFIEC 102. Specifically, the items of the existing market risk-weighted 
asset portion would be replaced with the appropriate items from the 
FFIEC 102. These changes would be effective for the 2017 DFAST 
submission.

Schedule A (Summary)--Revisions to Schedule A.1.d (Capital)

    The FDIC proposes removing certain items related to tier 1 common 
capital, effective for the 2016 DFAST submission. Additionally, the 
FDIC proposes adding one item that captures the aggregate non-
significant investments in the capital of unconsolidated financial 
institutions in the form of common stock and breaking out two items 
related to deferred tax assets into the amount before valuation 
allowances and the associated valuation allowance. The additional 
information from these changes would result in two existing items 
converting to derived items based on the additional information.

[[Page 77633]]

Schedule A (Summary)--Revisions to Schedule A.2.b (Retail Repurchase)

    This schedule would be removed to reduce reporting burden, 
effective for the 2017 DFAST submission.

Schedule A (Summary)--Deletion of Schedule A.2.c (ASC 310-30)

    This schedule would be removed to reduce reporting burden, 
effective for the 2017 DFAST submission.

Schedule A (Summary)--Revisions to Schedule A.7.c (PPNR Metrics)

    In order to fully align the schedule with the stress scenarios, the 
beta information would be collected according to the scenario instead 
of the current ``normal environment'' requirement, effective for the 
2016 DFAST submission.

Counterparty Credit Risk Schedule

    This schedule would be removed to reduce reporting burden effective 
for the 2016 DFAST submission. Aggregate counterparty credit risk 
information will continue to be obtained through the Summary Schedule 
(Schedule A).

Burden Estimates

    The FDIC estimates the burden of this collection as follows:

Current

    Number of Respondents: 4.
    Annual Burden per Respondent: 1,040.
    Total Annual Burden: 4,160.

Proposed

    Estimated Number of Respondents: 4.
    Annual Burden per Respondent: 1,114.
    Estimated Total Annual Burden: 4,456 hours.
    The FDIC recognizes that the Board has estimated 71,709 hours for 
bank holding companies to prepare the Summary, Macro scenario, 
Operational risk, Regulatory capital transitions, and Regulatory 
capital instruments for the FR Y-14A. The FDIC believes that the 
systems covered institutions use to prepare the FR Y-14A reporting 
templates will also be used to prepare the reporting templates 
described in this notice. Comments continue to be invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the FDIC, including whether the 
information has practical utility;
    (b) The accuracy of the FDIC's estimate of the burden of the 
collection of information;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated at Washington, DC, this 10th day of December.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015-31492 Filed 12-14-15; 8:45 am]
 BILLING CODE 6714-01-P