81 FR 91173 - Formations of, Acquisitions by, and Mergers of Bank Holding Companies

FEDERAL RESERVE SYSTEM

Federal Register Volume 81, Issue 242 (December 16, 2016)

Page Range		91173-91174
FR Document		2016-30301

Federal Register, Volume 81 Issue 242 (Friday, December 16, 2016)

[Federal Register Volume 81, Number 242 (Friday, December 16, 2016)]
[Notices]
[Pages 91173-91174]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30301]


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FEDERAL RESERVE SYSTEM


Formations of, Acquisitions by, and Mergers of Bank Holding 
Companies

    The companies listed in this notice have applied to the Board for 
approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 
1841 et seq.) (BHC Act), Regulation Y (12 CFR part 225), and all other 
applicable statutes and regulations to become a bank holding company 
and/or to acquire the

[[Page 91174]]

assets or the ownership of, control of, or the power to vote shares of 
a bank or bank holding company and all of the banks and nonbanking 
companies owned by the bank holding company, including the companies 
listed below.
    The applications listed below, as well as other related filings 
required by the Board, are available for immediate inspection at the 
Federal Reserve Bank indicated. The applications will also be available 
for inspection at the offices of the Board of Governors. Interested 
persons may express their views in writing on the standards enumerated 
in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the 
acquisition of a nonbanking company, the review also includes whether 
the acquisition of the nonbanking company complies with the standards 
in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, 
nonbanking activities will be conducted throughout the United States.
    Unless otherwise noted, comments regarding each of these 
applications must be received at the Reserve Bank indicated or the 
offices of the Board of Governors not later than January 17, 2017.
    A. Federal Reserve Bank of St. Louis (David L. Hubbard, Senior 
Manager) P.O. Box 442, St. Louis, Missouri 63166-2034. Comments can 
also be sent electronically to [email protected]:
    1. Farmers Bancorp, Inc., Blytheville, Arkansas; to acquire 100 
percent of Tennessee Bank & Trust, Nashville, Tennessee, a de nova 
bank.

    Board of Governors of the Federal Reserve System, December 13, 
2016.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2016-30301 Filed 12-15-16; 8:45 am]
 BILLING CODE 6210-01-P

Federal Register / Vol. 81, No. 242 / Friday, December 16, 2016 / Notices 91173

effect to the intended phase-in schedule requires an agency either to provide a • Would a different format (grouping
for the FR 2052a by allowing certain regulatory flexibility analysis or to and order of sections, use of headings,
firms additional time to complete certify that the extension will not have paragraphing) make the notice easier to
Schedule G of the FR Y–15. Immediate a significant economic impact on a understand? If so, what changes would
adoption of this change also would substantial number of small entities. make the notice easier to understand?
provide clarity to firms required to file Based on this analysis and for the • Would more, but shorter, sections
the FR Y–15 and FR 2052a regarding the reasons stated below, the Board believes be better? If so, which sections should
interaction of the forms, and relieve that the extension will not have a be changed?
burden on these firms by allowing significant economic impact on a • What else could be done to make
additional time to develop the systems substantial number of small entities. the notice easier to understand?
necessary to complete the FR Y–15 and Under regulations issued by the U.S. C. Paperwork Reduction Act
FR 2052a. Without the revised schedule Small Business Administration, a small
of Schedule G of the FR Y–15 in the entity includes a depository institution, In accordance with section 3512 of
extension, many holding companies bank holding company, or savings and the Paperwork Reduction Act of 1995
would expend significant resources to loan holding company with total assets (PRA) (44 U.S.C. 3501–3521), the Board
develop liquidity reporting systems of $550 million or less (a small banking may not conduct or sponsor, and a
significantly in advance of when these organization).10 As of June 30, 2016, respondent is not required to respond
systems would otherwise become there were approximately 3,203 top-tier to, an information collection unless it
necessary. Further, since only certain small bank holding companies and 162 displays a currently valid Office of
summary statistics reported on small savings and loan holding Management and Budget (OMB) control
Schedule G are released to the public, companies. number. The Board reviewed the
allowing certain firms additional time to The Board believes that the extension extension under the authority delegated
complete Schedule G will not have a will reduce regulatory burden by to the Board by OMB. The extension
significant impact on the amount of providing additional time for certain contains no requirements subject to the
information available to the public.7 firms to complete Schedule G of the FR PRA.
The Board finds that, under these Y–15. The firms required to file the FR D. Administrative Procedure Act
circumstances, prior notice and Y–15 are bank holding companies,
comment through the issuance of a savings and loan holding companies, As noticed, the Administrative
proposal are impracticable and that the and intermediate holding companies Procedure Act allows an agency to act
public interest is best served by making with $50 billion or more in total immediately to adopt a rule without
the extension effective as quickly as consolidated assets, as well as any U.S.- public notice and comment if the
possible. based organization designated as a agency has ‘‘good cause.’’ 11 In this case,
global systemically important bank the Board has good cause to issue the
VI. Regulatory Analysis extension and to have the extension be
holding company. Therefore, neither
A. Regulatory Flexibility Act Analysis Schedule G of the FR Y–15 nor this effective immediately.12 The extension
extension apply to small entities. will provide certain firms additional
The requirements of the Regulatory time to complete Schedule G of the FR
Flexibility Act (5 U.S.C. 601 et seq.) The Board is aware of no other
Federal rules that duplicate, overlap, or Y–15. The delay provides clarity to the
(RFA) are not applicable to this interim industry regarding the Board’s
extension.8 Nonetheless, the Board conflict with this extension. The Board
does not believe that there are expectations for implementation of
believes that this extention would not systems for monitoring and reporting
have a significant economic impact on significant alternatives to the extension
that would reduce the economic impact liquidity positions and to ensure that
a substantial number of small entities. these firms have sufficient time to
The Board requests comment on its on small banking organizations
supervised by the Board. develop these systems and the related
conclusion that the extension should risk management processes.
not have a significant economic impact B. Solicitation of Comments on Use of
on a substantial number of small By order of the Board of Governors of the
Plain Language Federal Reserve System, December 9, 2016.
entities.
The RFA generally requires an agency Section 722 of the Gramm-Leach- Robert deV. Frierson,
to assess the impact a rule is expected Bliley Act requires the agencies to use Secretary of the Board.
to have on small entities.9 The RFA plain language in all proposed and final [FR Doc. 2016–29967 Filed 12–14–16; 11:15 am]
rules published after January 1, 2000. BILLING CODE P
7 Items one through four of Schedule G receive The agencies invite comment on how to
confidential treatment until the liquidity coverage make this extension easier to
ratio disclosure standard has been implemented. understand. For example:
Information for which confidential treatment is
FEDERAL RESERVE SYSTEM
provided may subsequently be released in • Have the agencies organized the
accordance with the terms of 12 CFR 261.16 or as material to suit your needs? If not, how Formations of, Acquisitions by, and
otherwise provided by law. could it be more clearly stated? Mergers of Bank Holding Companies
8 The requirements of the RFA are not applicable
• Are the requirements in the rule
to rules adopted under the Administrative The companies listed in this notice
clearly stated? If not, how could they be
Procedure Act’s ‘‘good cause’’ exception, see 5 have applied to the Board for approval,
U.S.C. 601(2) (defining ‘‘rule’’ and notice more clearly stated?
pursuant to the Bank Holding Company
requirements under the APA). • Does the notice contain technical
mstockstill on DSK3G9T082PROD with NOTICES

Act of 1956 (12 U.S.C. 1841 et seq.)
9 Under standards the U.S. Small Business
language or jargon that is not clear? If
Administration has established, an entity is (BHC Act), Regulation Y (12 CFR part
so, what language requires clarification?
considered ‘‘small’’ if it has $175 million or less in 225), and all other applicable statutes
assets for banks and other depository institutions. and regulations to become a bank
U.S. Small Business Administration, Table of Small 10 See 13 CFR 121.201. Effective July 14, 2014, the

Business Size Standards Matched to North Small Business Administration revised the size
holding company and/or to acquire the
American Industry Classification System Codes, standards for banking organizations to $550 million
11 12 U.S.C. 553(b).
available at http://www.sba.gov/idc/groups/public/ in assets from $500 million in assets. 79 FR 33647
documents/sba_homepage/serv_sstd_tablepdf.pdf. (June 12, 2014). 12 12 U.S.C. 553(d).

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91174 Federal Register / Vol. 81, No. 242 / Friday, December 16, 2016 / Notices

assets or the ownership of, control of, or available solely to Vermont’s Agency of multipayer payment and care delivery
the power to vote shares of a bank or Human Services in order to provide care model, and Vermont publicly released
bank holding company and all of the coordination and bolster collaboration its proposal on January 25, 2016. CMS
banks and nonbanking companies for practices and community-based reviewed Vermont’s proposal and
owned by the bank holding company, health care providers as part of the determined that it met the necessary
including the companies listed below. Vermont All-Payer Accountable Care requirements to explore a potential
The applications listed below, as well Organization (ACO) Model. Vermont-specific model in which
as other related filings required by the DATES: The performance period of the Medicare aligns with Vermont’s
Board, are available for immediate Vermont All-Payer ACO Model will healthcare transformation efforts. In
inspection at the Federal Reserve Bank begin on January 1, 2017, and conclude October 2016, CMS and the State of
indicated. The applications will also be on December 31, 2022. Vermont entered into the Vermont All-
available for inspection at the offices of FOR FURTHER INFORMATION CONTACT:
Payer Accountable Care Organization
the Board of Governors. Interested Stephen Cha, (410) 786–1876. Model Agreement (‘‘State Agreement’’)
persons may express their views in to implement the Vermont All-Payer
SUPPLEMENTARY INFORMATION:
writing on the standards enumerated in ACO Model. The Vermont All-Payer
the BHC Act (12 U.S.C. 1842(c)). If the I. Background ACO Model will be a 6-year model
proposal also involves the acquisition of beginning in 2017 and ending in 2022.
The Vermont All-Payer Accountable
a nonbanking company, the review also As part of the Model, Vermont health
Care Organization Model (Model) is the care providers will participate in a
includes whether the acquisition of the Centers for Medicare & Medicaid
nonbanking company complies with the Vermont-specific Medicare ACO
Services’ (CMS) new test within the initiative (the Vermont Medicare ACO
standards in section 4 of the BHC Act Center for Medicare and Medicaid
(12 U.S.C. 1843). Unless otherwise Initiative), which is largely based on
Innovation of an alternative payment CMS’ Next Generation ACO Model.
noted, nonbanking activities will be model in which the major health care
conducted throughout the United States. CMS will provide one-time start-up
payers—Medicare, Medicaid, and funding in the amount of $9,500,000 to
Unless otherwise noted, comments commercial health care payers—
regarding each of these applications the State to assist Vermont health care
incentivize health care value and providers with care coordination and
must be received at the Reserve Bank quality under the same payment
indicated or the offices of the Board of bolster their collaboration with
structure for health care providers community-based resources. CMS will
Governors not later than January 17, throughout the state’s care delivery
2017. provide the start-up funding as a
system to transform health care for the cooperative agreement funding
A. Federal Reserve Bank of St. Louis entire state and its population. An
(David L. Hubbard, Senior Manager) opportunity available solely to
Accountable Care Organization (ACO) is Vermont’s Agency of Human Services,
P.O. Box 442, St. Louis, Missouri an entity formed by certain health care
63166–2034. Comments can also be sent as announced in this notice. More
providers that accepts financial information about the Vermont All-
electronically to accountability for the overall quality
Comments.applications@stls.frb.org: Payer ACO Model can be found at
and cost of medical care furnished to, https://innovation.cms.gov/initiatives/
1. Farmers Bancorp, Inc., Blytheville, and health of, beneficiaries attributed to
Arkansas; to acquire 100 percent of vermont-all-payer-aco-model/.
the entity. Through the Model, CMS will test
Tennessee Bank & Trust, Nashville, CMS believes that states can be
Tennessee, a de nova bank. whether the quality of health care for
critical partners of the federal Vermont residents improves and
Board of Governors of the Federal Reserve government and other health care healthcare expenditures for
System, December 13, 2016. payers to facilitate the design, beneficiaries across payers (including
Yao-Chin Chao, implementation, and evaluation of Medicare fee-for-service, Vermont
Assistant Secretary of the Board. community-centered health systems that Medicaid, Vermont commercial plans,
[FR Doc. 2016–30301 Filed 12–15–16; 8:45 am] can deliver significantly improved cost, and Vermont self-insured plans)
BILLING CODE 6210–01–P
quality, and population health decrease if—
performance results for all state • The aforementioned payers offer
residents, including Medicare, Vermont ACOs risk-based arrangements
DEPARTMENT OF HEALTH AND Medicaid, and Children’s Health tied to health outcomes and healthcare
HUMAN SERVICES Insurance Program (CHIP) beneficiaries. expenditures;
States have policy and regulatory • The majority of Vermont health care
Centers for Medicare & Medicaid authorities, as well as ongoing providers enter into such risk-based
Services relationships with commercial arrangements; and
healthcare payers, health plans, and • The majority of Vermont residents
[CMS–5521–N] health care providers that can accelerate across payers are aligned to an ACO
Medicare Program; Start-Up Funding in delivery system reform. CMS has bound by these arrangements.
previously partnered with states to CMS and Vermont aim for broad ACO
Support of the Vermont All-Payer
accelerate delivery system reform participation throughout the state,
Accountable Care Organization (ACO)
through initiatives such as the State across all the significant payers and the
Model—Cooperative Agreement
Innovations Model (SIM). SIM provides majority of the care delivery system, to
Centers for Medicare & state-based healthcare transformation make redesigning the entire care
mstockstill on DSK3G9T082PROD with NOTICES

AGENCY:
Medicaid Services (CMS), HHS. efforts with funding to test the ability of delivery system a rational business
ACTION: Notice. states to utilize policy and regulatory strategy for Vermont health care
levers to accelerate multi-payer health providers and payers. As set forth in the
SUMMARY: The purpose of this notice is care transformation. State Agreement, Vermont commits to
to announce issuance of the November Vermont, a SIM state awardee, achieving statewide health outcomes,
23, 2016 single-source cooperative approached CMS with a desire to financial targets, and ACO scale
agreement funding opportunity include Medicare in the state’s (percentage of Vermont residents

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Document Created: 2018-02-14 09:07:07
Document Modified: 2018-02-14 09:07:07

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
FR Citation		81 FR 91173