81_FR_19243 81 FR 19179 - Proposed Agency Information Collection Activities; Comment Request

81 FR 19179 - Proposed Agency Information Collection Activities; Comment Request

FEDERAL RESERVE SYSTEM

Federal Register Volume 81, Issue 64 (April 4, 2016)

Page Range19179-19181
FR Document2016-07545

The Board of Governors of the Federal Reserve System (Board or Federal Reserve) invites comment on a proposal to revise the FR Y-7Q by collecting fourteen new data items to monitor compliance with enhanced prudential standards for foreign banking organizations (FBOs) adopted pursuant to Subparts N and O of Regulation YY (12 CFR part 252). The proposal would require an FBO with total consolidated assets of $50 billion or more to report the new data items in order to determine whether the FBO meets capital adequacy standards at the consolidated level that are consistent with the Basel capital framework. On June 15, 1984, the Office of Management and Budget (OMB) delegated to the Board authority under the Paperwork Reduction Act (PRA) to approve of and assign OMB control numbers to collection of information requests and requirements conducted or sponsored by the Board. In exercising this delegated authority, the Board is directed to take every reasonable step to solicit comment. In determining whether to approve a collection of information, the Board will consider all comments received from the public and other agencies.

Federal Register, Volume 81 Issue 64 (Monday, April 4, 2016)
[Federal Register Volume 81, Number 64 (Monday, April 4, 2016)]
[Notices]
[Pages 19179-19181]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-07545]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice.

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

SUMMARY: The Board of Governors of the Federal Reserve System (Board or 
Federal Reserve) invites comment on a proposal to revise the FR Y-7Q by 
collecting fourteen new data items to monitor compliance with enhanced 
prudential standards for foreign banking organizations (FBOs) adopted 
pursuant to Subparts N and O of Regulation YY (12 CFR part 252). The 
proposal would require an FBO with total consolidated assets of $50 
billion or more to report the new data items in order to determine 
whether the FBO meets capital adequacy standards at the consolidated 
level that are consistent with the Basel capital framework.
    On June 15, 1984, the Office of Management and Budget (OMB) 
delegated to the Board authority under the Paperwork Reduction Act 
(PRA) to approve of and assign OMB control numbers to collection of 
information requests and requirements conducted or sponsored by the 
Board. In exercising this delegated authority, the Board is directed to 
take every reasonable step to solicit comment. In determining whether 
to approve a collection of information, the Board will consider all 
comments received from the public and other agencies.

DATES: Comments must be submitted on or before June 3, 2016.

ADDRESSES: You may submit comments, identified by FR Y-7N, FR Y-7NS, or 
FR Y-7Q by any of the following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include OMB 
number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.

[[Page 19180]]

     Mail: Robert deV. Frierson, Secretary, Board of Governors 
of the Federal Reserve System, 20th Street and Constitution Avenue NW., 
Washington, DC 20551.
    All public comments are available from the Board's Web site at 
http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room MP-
500 of the Board's Martin Building (20th and C Streets NW.) between 
9:00 a.m. and 5:00 p.m. on weekdays.
    Additionally, commenters may send a copy of their comments to the 
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 or by 
fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: 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.
    A copy of the PRA OMB submission, including the proposed reporting 
form and instructions, supporting statement, and other documentation 
will be placed into OMB's public docket files, once approved. These 
documents will also be made available on the Board's public Web site 
at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may 
be requested from the agency clearance officer, whose name appears 
below.

SUPPLEMENTARY INFORMATION:

Request for Comment on Information Collection Proposal

    The Board invites public comment on the following information 
collection, which is being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Federal Reserve's functions, including 
whether the information has practical utility;
    b. The accuracy of the Federal Reserve's estimate of the burden of 
the proposed information collection, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.

Proposal To Approve Under OMB Delegated Authority the Extension for 
Three Years, With Revision, of the Following Report

    Report title: Financial Statements of U.S. Nonbank Subsidiaries 
Held by Foreign Banking Organizations, Abbreviated Financial Statements 
of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations, and 
Capital and Asset Report for Foreign Banking Organizations.
    Agency form number: FR Y-7N, FR Y-7NS, and FR Y-7Q.
    OMB control number: 7100-0125.
    Frequency: Quarterly and annually, beginning with the reporting 
period ending on September 30, 2016, and, for some items, March 31, 
2018.
    Reporters: Foreign banking organizations (FBOs).
    Estimated annual reporting hours: FR Y-7N (quarterly): 1,170 hours; 
FR Y-7N (annual): 218 hours; FR Y-7NS: 40 hours; FR Y-7Q (quarterly): 
1,360 hours; FR Y-7Q (annual): 32 hours.
    Estimated average hours per response: FR Y-7N (quarterly): 6.8 
hours; FR Y-7N (annual): 6.8 hours; FR Y-7NS: 1 hour; FR Y-7Q 
(quarterly): 2.5 hours; FR Y-7Q (annual): 1 hour.
    Number of respondents: FR Y-7N (quarterly): 43; FR Y-7N (annual): 
32; FR Y-7NS: 40; FR Y-7Q (quarterly): 136; FR Y-7Q (annual): 32.
    General description of report: The FR Y-7Q collects consolidated 
regulatory capital information from all FBOs either quarterly or 
annually. The FR Y-7Q is filed quarterly by FBOs that have effectively 
elected to become U.S. financial holding companies (FHCs) and by FBOs 
that have total consolidated assets of $50 billion or more, regardless 
of FHC status. All other FBOs file the FR Y-7Q annually. The FR Y-7N 
and FR Y-7NS collect financial information for non-functionally 
regulated U.S. nonbank subsidiaries held by FBOs other than through a 
U.S. bank holding company (BHC), FHC, or U.S. bank. FBOs file the FR Y-
7N quarterly or annually or the FR Y-7NS annually predominantly based 
on asset size thresholds.
    This information collection is mandatory pursuant to section 5(c) 
of the Bank Holding Company Act (12 U.S.C. 1844(c)) and sections 8(c) 
and 13 of the International Banking Act (12 U.S.C. 3106(c) and 3108)). 
Section 165 of the Dodd-Frank Act, (12 U.S.C. 5365), directs the 
Federal Reserve to establish enhanced prudential standards for certain 
companies, including certain FBOs. The data may not be confidential in 
all cases. However, individual respondents may request confidential 
treatment for any of these reports pursuant to sections (b)(4) and 
(b)(6) of the Freedom of Information Act (5 U.S.C. 522(b)(4) and 
(b)(6)). The applicability of these exemptions would be determined on a 
case-by-case basis. In addition, items 8.b and 8.c in Part 1B of the FR 
Y-7Q involve disclosure of capital buffers imposed by an FBO's home 
country supervisor. While some home country supervisors do not accord 
confidential status to that information or do so only on a case-by-case 
basis, others treat this information as confidential on a blanket basis 
under the belief that a more selective confidential treatment could 
signal an FBO's financial strength or weakness and could thereby cause 
substantial competitive harm. Because the information on items 8.b and 
8.c may or may not be public depending on the FBO's home country, the 
Federal Reserve would grant confidential status, pursuant to FOIA 
exemption 4, only on a case-by-case basis.
    The Federal Reserve proposes to revise the FR Y-7Q by collecting 
fourteen new data items to monitor compliance with enhanced prudential 
standards for FBOs adopted pursuant to Subparts N and O of Regulation 
YY. The new data items would be used to determine whether an FBO with 
total consolidated assets of $50 billion or more meets capital adequacy 
standards at the consolidated level that are consistent with the Basel 
capital framework. The proposed revision would be effective September 
30, 2016, and, for some items, March 31, 2018.
    Regulation YY requires an FBO with total consolidated assets of $50 
billion or more to certify to the Federal Reserve that it meets capital 
adequacy standards on a consolidated basis, as established by its home-
country supervisor, that are consistent with the regulatory capital 
framework published by the Basel Committee on Banking Supervision 
(BCBS), as amended from time to time (Basel capital framework). This 
requirement was intended to help ensure that the consolidated capital 
base supporting the activities of U.S. branches and agencies remains 
strong,

[[Page 19181]]

and to lessen the degree to which weaknesses at the consolidated 
foreign parent could undermine the financial strength of its U.S. 
operations.
    The proposal would require an FBO with total consolidated assets of 
$50 billion or more to complete a new section, Part 1B, effective 
September 30, 2016 (with three of the proposed items effective March 
31, 2018). Proposed Part 1B would contain 14 items related to home 
country regulatory capital ratios that would be reported on a quarterly 
basis. The value of each of these items would be calculated on a 
consolidated basis according to the methodologies established by the 
FBO's home-country supervisor that are consistent with the Basel 
capital framework, as defined in Regulation YY.\1\ If the home-country 
supervisor has not established capital adequacy standards consistent 
with the Basel capital framework, the value of these items would be 
calculated on a pro-forma basis as if the FBO were subject to such 
standards.
---------------------------------------------------------------------------

    \1\ See 12 CFR part 252.143 and 252.154.
---------------------------------------------------------------------------

    The proposed line items that would be effective September 30, 2016, 
include: (1) Common equity tier 1 capital, (2) Additional tier 1 
capital, (3) Tier 1 capital (sum of items 1 and 2), (4) Tier 2 capital, 
(5) Total risk-based capital (sum of items 3 and 4), (6) Capital 
conservation buffer, (7) Countercyclical capital buffer, (8) Other 
applicable capital buffer(s) (a) GSIB/DSIB buffer, (b) Pillar II 
buffer, (c) ``Other'' buffer, (9) Compliance with restrictions on 
capital distributions and discretionary bonus payments associated with 
a capital buffer.
    The proposed line items that would be effective March 31, 2018, 
include: (10) Home country capital measure used in the numerator of the 
leverage ratio as set forth in the Basel capital framework, (11) Home 
country exposure measure used in the denominator of the leverage ratio 
as set forth in the Basel capital framework, (12) Minimum home country 
leverage ratio (if different from the leverage ratio in the Basel 
capital framework, as applicable).
    Part 1A of the current FR Y-7Q form, which applies to all FBOs, 
collects tier 1 capital, total risk-based capital, risk-weighted 
assets, total consolidated assets and total combined assets of U.S. 
operations, net of intercompany balances and transactions between U.S. 
domiciled affiliates, branches, and agencies, and total U.S. non-branch 
assets. While the Federal Reserve does not propose to change existing 
items reported in Part 1A of the FR Y-7Q, the proposal would modify the 
instructions to clarify that an FBO would be required to report Tier 1 
capital and Total risk-based capital only on Part 1B, if the FBO's home 
country methodologies are consistent with the Basel capital framework.
    The proposal would not revise the reporting frequency for the FR Y-
7Q. FBOs with total consolidated assets of less than $50 billion and 
that are not FHCs would only file Part 1A on an annual basis. FBOs who 
have elected to become FHCs and do not have $50 billion or more in 
total consolidated assets will file Part 1A on a quarterly basis. FBOs 
with total consolidated assets of $50 billion or more would complete 
both Part 1A and Part 1B on a quarterly basis.
    As noted above, the Federal Reserve would propose to determine 
confidentiality of the proposed items on a case-by-case basis. However, 
the Federal Reserve notes that some jurisdictions may treat this 
information as confidential on a blanket basis under the belief that a 
more selective confidential treatment could signal an FBO's financial 
strength or weakness and could thereby cause substantial competitive 
harm. The Federal Reserve seeks comment on whether these items should 
qualify for confidential treatment in all cases, such that treating 
this information as confidential on a blanket basis would be 
appropriate.
    The FR Y-7N and FR Y-7NS are not being revised at this time. 
However, the estimated number of respondents is expected to decrease as 
a result of the designation of U.S. intermediate holding companies 
(IHCs) and recent proposed reporting requirements for the IHCs.\2\
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    \2\ 81 FR 6265 (February 5, 2016).

    Board of Governors of the Federal Reserve System, March 30, 
2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-07545 Filed 4-1-16; 8:45 am]
 BILLING CODE 6210-01-P



                                                                                  Federal Register / Vol. 81, No. 64 / Monday, April 4, 2016 / Notices                                                  19179

                                                  collection, along with an analysis of                   engaged in CSFTs. No information is                     Board of Governors of the Federal Reserve
                                                  comments and recommendations                            collected by the Board in connection                  System, March 30, 2016.
                                                  received, will be submitted to the Board                with the Interagency Statement, so the                Robert deV. Frierson,
                                                  for final approval under OMB delegated                  issue of confidentiality does not                     Secretary of the Board.
                                                  authority. Comments are invited on the                  ordinarily arise. Should an institution’s             [FR Doc. 2016–07544 Filed 4–1–16; 8:45 am]
                                                  following:                                              policies or procedures adopted pursuant               BILLING CODE 6210–01–P
                                                    a. Whether the proposed collection of                 to the Interagency Statement be retained
                                                  information is necessary for the proper                 as part of the record of an institution’s
                                                  performance of the Federal Reserve’s                    examination, the records would be                     FEDERAL RESERVE SYSTEM
                                                  functions; including whether the                        exempt from disclosure under
                                                  information has practical utility;                                                                            Proposed Agency Information
                                                                                                          exemption (b)(8) of the Freedom of                    Collection Activities; Comment
                                                    b. The accuracy of the Federal
                                                                                                          Information Act, 5 U.S.C. 552(b)(8).                  Request
                                                  Reserve’s estimate of the burden of the
                                                  proposed information collection,                           Abstract: The guidance provides that
                                                                                                          state member banks, bank holding                      AGENCY: Board of Governors of the
                                                  including the validity of the
                                                                                                                                                                Federal Reserve System.
                                                  methodology and assumptions used;                       companies, and U.S. branches and
                                                    c. Ways to enhance the quality,                                                                             ACTION: Notice.
                                                                                                          agencies of foreign banks supervised by
                                                  utility, and clarity of the information to              the Federal Reserve should establish                  SUMMARY:   The Board of Governors of the
                                                  be collected;                                           and maintain policies and procedures                  Federal Reserve System (Board or
                                                    d. Ways to minimize the burden of                     for identifying, evaluating, assessing,               Federal Reserve) invites comment on a
                                                  information collection on respondents,                  documenting, and controlling risks                    proposal to revise the FR Y–7Q by
                                                  including through the use of automated                  associated with certain complex                       collecting fourteen new data items to
                                                  collection techniques or other forms of                 structured finance transactions (CSFTs).              monitor compliance with enhanced
                                                  information technology; and                                                                                   prudential standards for foreign banking
                                                    e. Estimates of capital or start up costs                A financial institution engaged in
                                                                                                          CSFTs should maintain a set of formal,                organizations (FBOs) adopted pursuant
                                                  and costs of operation, maintenance,                                                                          to Subparts N and O of Regulation YY
                                                  and purchase of services to provide                     firm-wide policies and procedures that
                                                                                                          are designed to allow the institution to              (12 CFR part 252). The proposal would
                                                  information.                                                                                                  require an FBO with total consolidated
                                                                                                          identify, evaluate, assess, document,
                                                  Proposal to Approve Under OMB                                                                                 assets of $50 billion or more to report
                                                                                                          and control the full range of credit,
                                                  Delegated Authority the Extension for                                                                         the new data items in order to
                                                                                                          market, operational, legal, and
                                                  Three Years, Without Revision, of the                                                                         determine whether the FBO meets
                                                                                                          reputational risks associated with these              capital adequacy standards at the
                                                  Following Report
                                                                                                          transactions. These policies may be                   consolidated level that are consistent
                                                     Report title: Recordkeeping                          developed specifically for CSFTs or
                                                  Requirements Associated with the                                                                              with the Basel capital framework.
                                                                                                          included in the set of broader policies                 On June 15, 1984, the Office of
                                                  Interagency Statement on Complex                        governing the institution generally. A                Management and Budget (OMB)
                                                  Structured Finance Activities.                          financial institution operating in foreign
                                                     Agency form number: FR 4022.                                                                               delegated to the Board authority under
                                                                                                          jurisdictions may tailor its policies and             the Paperwork Reduction Act (PRA) to
                                                     OMB control number: 7100–0311.
                                                     Frequency: Annual.                                   procedures as appropriate to account                  approve of and assign OMB control
                                                     Reporters: State member banks, bank                  for, and comply with, the applicable                  numbers to collection of information
                                                  holding companies, and U.S. branches                    laws, regulations, and standards of those             requests and requirements conducted or
                                                  and agencies of foreign banks.                          jurisdictions.                                        sponsored by the Board. In exercising
                                                     Estimated annual reporting hours:                       A financial institution’s policies and             this delegated authority, the Board is
                                                  180 hours.                                              procedures should establish a clear                   directed to take every reasonable step to
                                                     Estimated average hours per response:                framework for the review and approval                 solicit comment. In determining
                                                  10 hours.                                                                                                     whether to approve a collection of
                                                                                                          of individual CSFTs. These policies and
                                                     Number of respondents: 18                                                                                  information, the Board will consider all
                                                                                                          procedures should set forth the
                                                  respondents.                                                                                                  comments received from the public and
                                                                                                          responsibilities of the personnel
                                                     General description of report:                                                                             other agencies.
                                                                                                          involved in the origination, structuring,
                                                  Sections 11(a), 11(i), 21, and 25 of the                                                                      DATES: Comments must be submitted on
                                                                                                          trading, review, approval,
                                                  Federal Reserve Act (12 U.S.C. 248(a),                                                                        or before June 3, 2016.
                                                  248(i), 483, and 602) authorize the                     documentation, verification, and
                                                                                                                                                                ADDRESSES: You may submit comments,
                                                  Board to issue the information                          execution of CSFTs. A financial
                                                                                                                                                                identified by FR Y–7N, FR Y–7NS, or FR
                                                  collection and recordkeeping guidance                   institution should define what
                                                                                                                                                                Y–7Q by any of the following methods:
                                                                                                          constitutes a new complex structured
                                                  associated with the Interagency                                                                                 • Agency Web site: http://
                                                  Statement. In addition, section 5(c) of                 finance product and establish a control               www.federalreserve.gov. Follow the
                                                  the Bank Holding Company Act (12                        process for the approval of such new                  instructions for submitting comments at
                                                  U.S.C 1844(c)), section 10(b) of the                    product. An institution’s policies also               http://www.federalreserve.gov/apps/
                                                  Home Owners’ Loan Act (12 U.S.C.                        should provide for new complex                        foia/proposedregs.aspx.
                                                  1467a (b)(2)), and section 13(a) of the                 structured finance products to receive                  • Federal eRulemaking Portal: http://
                                                                                                          the approval of all relevant control areas
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  International Banking Act (12 U.S.C.                                                                          www.regulations.gov. Follow the
                                                  3108(a)) provide further authority for                  that are independent of the profit center             instructions for submitting comments.
                                                  the Board to issue such rules and                       before the products are offered to                      • Email: regs.comments@
                                                  guidance. As a guidance document, the                   customers.                                            federalreserve.gov. Include OMB
                                                  Interagency Statement is voluntary,                        Current Actions: The Federal Reserve               number in the subject line of the
                                                  although conformance with the                           proposes to extend, without revision,                 message.
                                                  guidance may be the subject of review                                                                           • Fax: (202) 452–3819 or (202) 452–
                                                                                                          the FR 4022 information collection.
                                                  during examinations of institutions                                                                           3102.


                                             VerDate Sep<11>2014   19:03 Apr 01, 2016   Jkt 238001   PO 00000   Frm 00068   Fmt 4703   Sfmt 4703   E:\FR\FM\04APN1.SGM   04APN1


                                                  19180                           Federal Register / Vol. 81, No. 64 / Monday, April 4, 2016 / Notices

                                                    • Mail: Robert deV. Frierson,                           c. Ways to enhance the quality,                        This information collection is
                                                  Secretary, Board of Governors of the                    utility, and clarity of the information to            mandatory pursuant to section 5(c) of
                                                  Federal Reserve System, 20th Street and                 be collected;                                         the Bank Holding Company Act (12
                                                  Constitution Avenue NW., Washington,                      d. Ways to minimize the burden of                   U.S.C. 1844(c)) and sections 8(c) and 13
                                                  DC 20551.                                               information collection on respondents,                of the International Banking Act (12
                                                     All public comments are available                    including through the use of automated                U.S.C. 3106(c) and 3108)). Section 165
                                                  from the Board’s Web site at http://                    collection techniques or other forms of               of the Dodd-Frank Act, (12 U.S.C. 5365),
                                                  www.federalreserve.gov/apps/foia/                       information technology; and                           directs the Federal Reserve to establish
                                                  proposedregs.aspx as submitted, unless                    e. Estimates of capital or startup costs            enhanced prudential standards for
                                                  modified for technical reasons.                         and costs of operation, maintenance,                  certain companies, including certain
                                                  Accordingly, your comments will not be                  and purchase of services to provide                   FBOs. The data may not be confidential
                                                  edited to remove any identifying or                     information.                                          in all cases. However, individual
                                                  contact information. Public comments                                                                          respondents may request confidential
                                                  may also be viewed electronically or in                 Proposal To Approve Under OMB                         treatment for any of these reports
                                                  paper form in Room MP–500 of the                        Delegated Authority the Extension for                 pursuant to sections (b)(4) and (b)(6) of
                                                  Board’s Martin Building (20th and C                     Three Years, With Revision, of the                    the Freedom of Information Act (5
                                                  Streets NW.) between 9:00 a.m. and 5:00                 Following Report                                      U.S.C. 522(b)(4) and (b)(6)). The
                                                  p.m. on weekdays.                                          Report title: Financial Statements of              applicability of these exemptions would
                                                     Additionally, commenters may send a                  U.S. Nonbank Subsidiaries Held by                     be determined on a case-by-case basis.
                                                  copy of their comments to the OMB                       Foreign Banking Organizations,                        In addition, items 8.b and 8.c in Part 1B
                                                  Desk Officer—Shagufta Ahmed—Office                      Abbreviated Financial Statements of                   of the FR Y–7Q involve disclosure of
                                                  of Information and Regulatory Affairs,                  U.S. Nonbank Subsidiaries Held by                     capital buffers imposed by an FBO’s
                                                  Office of Management and Budget, New                    Foreign Banking Organizations, and                    home country supervisor. While some
                                                  Executive Office Building, Room 10235                   Capital and Asset Report for Foreign                  home country supervisors do not accord
                                                  725 17th Street NW., Washington, DC                     Banking Organizations.                                confidential status to that information or
                                                  20503 or by fax to (202) 395–6974.                         Agency form number: FR Y–7N, FR                    do so only on a case-by-case basis,
                                                  FOR FURTHER INFORMATION CONTACT:                        Y–7NS, and FR Y–7Q.                                   others treat this information as
                                                  Board Clearance Officer—Nuha                               OMB control number: 7100–0125.                     confidential on a blanket basis under
                                                  Elmaghrabi—Office of the Chief Data                        Frequency: Quarterly and annually,                 the belief that a more selective
                                                                                                          beginning with the reporting period                   confidential treatment could signal an
                                                  Officer, Board of Governors of the
                                                                                                          ending on September 30, 2016, and, for                FBO’s financial strength or weakness
                                                  Federal Reserve System, Washington,
                                                                                                          some items, March 31, 2018.                           and could thereby cause substantial
                                                  DC 20551 (202) 452–3829.
                                                                                                             Reporters: Foreign banking                         competitive harm. Because the
                                                  Telecommunications Device for the Deaf
                                                                                                          organizations (FBOs).                                 information on items 8.b and 8.c may or
                                                  (TDD) users may contact (202) 263–
                                                                                                                                                                may not be public depending on the
                                                  4869, Board of Governors of the Federal                    Estimated annual reporting hours: FR
                                                                                                                                                                FBO’s home country, the Federal
                                                  Reserve System, Washington, DC 20551.                   Y–7N (quarterly): 1,170 hours; FR Y–7N
                                                                                                                                                                Reserve would grant confidential status,
                                                    A copy of the PRA OMB submission,                     (annual): 218 hours; FR Y–7NS: 40
                                                                                                                                                                pursuant to FOIA exemption 4, only on
                                                  including the proposed reporting form                   hours; FR Y–7Q (quarterly): 1,360 hours;
                                                                                                                                                                a case-by-case basis.
                                                  and instructions, supporting statement,                 FR Y–7Q (annual): 32 hours.                              The Federal Reserve proposes to
                                                  and other documentation will be placed                     Estimated average hours per response:              revise the FR Y–7Q by collecting
                                                  into OMB’s public docket files, once                    FR Y–7N (quarterly): 6.8 hours; FR Y–                 fourteen new data items to monitor
                                                  approved. These documents will also be                  7N (annual): 6.8 hours; FR Y–7NS: 1                   compliance with enhanced prudential
                                                  made available on the Board’s public                    hour; FR Y–7Q (quarterly): 2.5 hours; FR              standards for FBOs adopted pursuant to
                                                  Web site at: http://                                    Y–7Q (annual): 1 hour.                                Subparts N and O of Regulation YY. The
                                                  www.federalreserve.gov/apps/                               Number of respondents: FR Y–7N                     new data items would be used to
                                                  reportforms/review.aspx or may be                       (quarterly): 43; FR Y–7N (annual): 32;                determine whether an FBO with total
                                                  requested from the agency clearance                     FR Y–7NS: 40; FR Y–7Q (quarterly):                    consolidated assets of $50 billion or
                                                  officer, whose name appears below.                      136; FR Y–7Q (annual): 32.                            more meets capital adequacy standards
                                                  SUPPLEMENTARY INFORMATION:                                 General description of report: The FR              at the consolidated level that are
                                                                                                          Y–7Q collects consolidated regulatory                 consistent with the Basel capital
                                                  Request for Comment on Information                      capital information from all FBOs either
                                                  Collection Proposal                                                                                           framework. The proposed revision
                                                                                                          quarterly or annually. The FR Y–7Q is                 would be effective September 30, 2016,
                                                    The Board invites public comment on                   filed quarterly by FBOs that have                     and, for some items, March 31, 2018.
                                                  the following information collection,                   effectively elected to become U.S.                       Regulation YY requires an FBO with
                                                  which is being reviewed under                           financial holding companies (FHCs) and                total consolidated assets of $50 billion
                                                  authority delegated by the OMB under                    by FBOs that have total consolidated                  or more to certify to the Federal Reserve
                                                  the PRA. Comments are invited on the                    assets of $50 billion or more, regardless             that it meets capital adequacy standards
                                                  following:                                              of FHC status. All other FBOs file the FR             on a consolidated basis, as established
                                                    a. Whether the proposed collection of                 Y–7Q annually. The FR Y–7N and FR                     by its home-country supervisor, that are
                                                  information is necessary for the proper                 Y–7NS collect financial information for               consistent with the regulatory capital
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                                                  performance of the Federal Reserve’s                    non-functionally regulated U.S.                       framework published by the Basel
                                                  functions, including whether the                        nonbank subsidiaries held by FBOs                     Committee on Banking Supervision
                                                  information has practical utility;                      other than through a U.S. bank holding                (BCBS), as amended from time to time
                                                    b. The accuracy of the Federal                        company (BHC), FHC, or U.S. bank.                     (Basel capital framework). This
                                                  Reserve’s estimate of the burden of the                 FBOs file the FR Y–7N quarterly or                    requirement was intended to help
                                                  proposed information collection,                        annually or the FR Y–7NS annually                     ensure that the consolidated capital base
                                                  including the validity of the                           predominantly based on asset size                     supporting the activities of U.S.
                                                  methodology and assumptions used;                       thresholds.                                           branches and agencies remains strong,


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                                                                                    Federal Register / Vol. 81, No. 64 / Monday, April 4, 2016 / Notices                                            19181

                                                  and to lessen the degree to which                         to report Tier 1 capital and Total risk-               Board-approved collections of
                                                  weaknesses at the consolidated foreign                    based capital only on Part 1B, if the                  information are incorporated into the
                                                  parent could undermine the financial                      FBO’s home country methodologies are                   official OMB inventory of currently
                                                  strength of its U.S. operations.                          consistent with the Basel capital                      approved collections of information.
                                                     The proposal would require an FBO                      framework.                                             Copies of the PRA Submission,
                                                  with total consolidated assets of $50                        The proposal would not revise the                   supporting statements and approved
                                                  billion or more to complete a new                         reporting frequency for the FR Y–7Q.                   collection of information instruments
                                                  section, Part 1B, effective September 30,                 FBOs with total consolidated assets of                 are placed into OMB’s public docket
                                                  2016 (with three of the proposed items                    less than $50 billion and that are not                 files. The Federal Reserve may not
                                                  effective March 31, 2018). Proposed Part                  FHCs would only file Part 1A on an                     conduct or sponsor, and the respondent
                                                  1B would contain 14 items related to                      annual basis. FBOs who have elected to                 is not required to respond to, an
                                                  home country regulatory capital ratios                    become FHCs and do not have $50                        information collection that has been
                                                  that would be reported on a quarterly                     billion or more in total consolidated                  extended, revised, or implemented on or
                                                  basis. The value of each of these items                   assets will file Part 1A on a quarterly                after October 1, 1995, unless it displays
                                                  would be calculated on a consolidated                     basis. FBOs with total consolidated                    a currently valid OMB number.
                                                  basis according to the methodologies                      assets of $50 billion or more would                    DATES: Comments must be submitted on
                                                  established by the FBO’s home-country                     complete both Part 1A and Part 1B on                   or before June 3, 2016.
                                                  supervisor that are consistent with the                   a quarterly basis.
                                                                                                               As noted above, the Federal Reserve                 ADDRESSES: You may submit comments,
                                                  Basel capital framework, as defined in
                                                  Regulation YY.1 If the home-country                       would propose to determine                             identified by FR 1379, FR 2060, or FR
                                                  supervisor has not established capital                    confidentiality of the proposed items on               4031 by any of the following methods:
                                                  adequacy standards consistent with the                    a case-by-case basis. However, the                        • Agency Web site: http://
                                                  Basel capital framework, the value of                     Federal Reserve notes that some                        www.federalreserve.gov. Follow the
                                                  these items would be calculated on a                      jurisdictions may treat this information               instructions for submitting comments at
                                                  pro-forma basis as if the FBO were                        as confidential on a blanket basis under               http://www.federalreserve.gov/apps/
                                                  subject to such standards.                                the belief that a more selective                       foia/proposedregs.aspx .
                                                     The proposed line items that would                     confidential treatment could signal an                    • Federal eRulemaking Portal: http://
                                                  be effective September 30, 2016,                          FBO’s financial strength or weakness                   www.regulations.gov. Follow the
                                                  include: (1) Common equity tier 1                         and could thereby cause substantial                    instructions for submitting comments.
                                                  capital, (2) Additional tier 1 capital, (3)               competitive harm. The Federal Reserve                     • Email: regs.comments@
                                                  Tier 1 capital (sum of items 1 and 2), (4)                seeks comment on whether these items                   federalreserve.gov. Include OMB
                                                  Tier 2 capital, (5) Total risk-based                      should qualify for confidential                        number in the subject line of the
                                                  capital (sum of items 3 and 4), (6)                       treatment in all cases, such that treating             message.
                                                  Capital conservation buffer, (7)                          this information as confidential on a                     • FAX: (202) 452–3819 or (202) 452–
                                                  Countercyclical capital buffer, (8) Other                 blanket basis would be appropriate.                    3102.
                                                  applicable capital buffer(s) (a) GSIB/                       The FR Y–7N and FR Y–7NS are not                       • Mail: Robert deV. Frierson,
                                                  DSIB buffer, (b) Pillar II buffer, (c)                    being revised at this time. However, the               Secretary, Board of Governors of the
                                                  ‘‘Other’’ buffer, (9) Compliance with                     estimated number of respondents is                     Federal Reserve System, 20th Street and
                                                  restrictions on capital distributions and                 expected to decrease as a result of the                Constitution Avenue NW., Washington,
                                                  discretionary bonus payments                              designation of U.S. intermediate holding               DC 20551.
                                                  associated with a capital buffer.                         companies (IHCs) and recent proposed                      All public comments are available
                                                     The proposed line items that would                     reporting requirements for the IHCs.2                  from the Board’s Web site at http://
                                                  be effective March 31, 2018, include:                                                                            www.federalreserve.gov/apps/foia/
                                                                                                              Board of Governors of the Federal Reserve            proposedregs.aspx as submitted, unless
                                                  (10) Home country capital measure used                    System, March 30, 2016.
                                                  in the numerator of the leverage ratio as                                                                        modified for technical reasons.
                                                                                                            Robert deV. Frierson,                                  Accordingly, your comments will not be
                                                  set forth in the Basel capital framework,
                                                                                                            Secretary of the Board.                                edited to remove any identifying or
                                                  (11) Home country exposure measure
                                                  used in the denominator of the leverage                   [FR Doc. 2016–07545 Filed 4–1–16; 8:45 am]             contact information. Public comments
                                                  ratio as set forth in the Basel capital                   BILLING CODE 6210–01–P                                 may also be viewed electronically or in
                                                  framework, (12) Minimum home                                                                                     paper form in Room 3515, 1801 K Street
                                                  country leverage ratio (if different from                                                                        (between 18th and 19th Streets NW.,)
                                                                                                            FEDERAL RESERVE SYSTEM                                 Washington, DC 20006 between 9:00
                                                  the leverage ratio in the Basel capital
                                                  framework, as applicable).                                                                                       a.m. and 5:00 p.m. on weekdays.
                                                                                                            Proposed Agency Information                               Additionally, commenters may send a
                                                     Part 1A of the current FR Y–7Q form,                   Collection Activities; Comment
                                                  which applies to all FBOs, collects tier                                                                         copy of their comments to the OMB
                                                                                                            Request                                                Desk Officer—Shagufta Ahmed—Office
                                                  1 capital, total risk-based capital, risk-
                                                  weighted assets, total consolidated                       AGENCY: Board of Governors of the                      of Information and Regulatory Affairs,
                                                  assets and total combined assets of U.S.                  Federal Reserve System.                                Office of Management and Budget, New
                                                  operations, net of intercompany                           SUMMARY: On June 15, 1984, the Office                  Executive Office Building, Room 10235
                                                  balances and transactions between U.S.                    of Management and Budget (OMB)                         725 17th Street NW., Washington, DC
                                                  domiciled affiliates, branches, and                       delegated to the Board of Governors of                 20503 or by fax to (202) 395–6974.
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                                                  agencies, and total U.S. non-branch                       the Federal Reserve System (Board) its                 FOR FURTHER INFORMATION CONTACT: A
                                                  assets. While the Federal Reserve does                    approval authority under the Paperwork                 copy of the PRA OMB submission,
                                                  not propose to change existing items                      Reduction Act (PRA), to approve of and                 including the proposed reporting form
                                                  reported in Part 1A of the FR Y–7Q, the                   assign OMB numbers to collection of                    and instructions, supporting statement,
                                                  proposal would modify the instructions                    information requests and requirements                  and other documentation will be placed
                                                  to clarify that an FBO would be required                  conducted or sponsored by the Board.                   into OMB’s public docket files, once
                                                                                                                                                                   approved. These documents will also be
                                                    1 See   12 CFR part 252.143 and 252.154.                  2 81   FR 6265 (February 5, 2016).                   made available on the Federal Reserve


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Document Created: 2016-04-02 03:53:47
Document Modified: 2016-04-02 03:53:47
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesComments must be submitted on or before June 3, 2016.
ContactBoard 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 Citation81 FR 19179 

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