81 FR 95612 - Regulation Q; Regulatory Capital Rules: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies
FEDERAL RESERVE SYSTEM Federal Register Volume 81, Issue 249 (December 28, 2016)
Federal Register Volume 81, Issue 249 (December 28, 2016)
| Page Range | 95612-95613 | |
| FR Document | 2016-31371 |
[Federal Register Volume 81, Number 249 (Wednesday, December 28, 2016)] [Notices] [Pages 95612-95613] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31371] ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM [Docket No. 1530; RIN 7100 AE 44] Regulation Q; Regulatory Capital Rules: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies AGENCY: Board of Governors of the Federal Reserve System (Board). ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: Under the rule of the Board regarding risk-based capital surcharges for global systemically important bank holding companies (GSIB surcharge rule), the Board is providing notice of the aggregate global indicator amounts for purposes of a calculation that is required under the GSIB surcharge rule for 2016. DATES: Effective: December 28, 2016. FOR FURTHER INFORMATION CONTACT: Juan C. Climent, Manager, (202) 872- 7526, or Holly Kirkpatrick, Supervisory Financial Analyst, (202) 452- 2796, Division of Supervision and Regulation; or Mark Buresh, Senior Attorney, (202) 452-5270, or Mary Watkins, Attorney, (202) 452-3722, Legal Division. Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. For the hearing impaired only, Telecommunications Device for the Deaf (TDD) users may contact (202) 263-4869. SUPPLEMENTARY INFORMATION: The Board's GSIB surcharge rule establishes a methodology to identify global systemically important bank holding companies in the United States (GSIBs) based on indicators that are correlated with systemic importance.\1\ Under the GSIB surcharge rule, a firm must calculate its GSIB score using a specific formula (Method 1). Method 1 uses five equally weighted categories that are correlated with systemic importance--size, interconnectedness, cross- jurisdictional activity, substitutability, [[Page 95613]] and complexity--and subdivided into twelve systemic indicators. For each indicator, a firm divides its own measure of each systemic indicator by an aggregate global indicator amount. The firm's Method 1 score is the sum of its weighted systemic indicator scores expressed in basis points. The GSIB surcharge for the firm is then the higher of the GSIB surcharge determined under Method 1 and a second method that weights size, interconnectedness, cross-jurisdictional activity, complexity, and a measure of a firm's reliance on wholesale funding (instead of substitutability).\2\ --------------------------------------------------------------------------- \1\ See 12 CFR 217.402, 217.404. \2\ The second method (Method 2) uses similar inputs to those used in Method 1, but replaces the substitutability category with a measure of a firm's use of short-term wholesale funding. In addition, Method 2 is calibrated differently from Method 1. --------------------------------------------------------------------------- The aggregate global indicator amounts used in the score calculation under Method 1 are based on data collected by the Basel Committee on Banking Supervision (BCBS). The BCBS amounts are determined based on the sum of the systemic indicator scores of the 75 largest U.S. and foreign banking organizations as measured by the BCBS, and any other banking organization that the BCBS includes in its sample total for that year. The BCBS publicly releases these values, denominated in euros, each year. Pursuant to the GSIB surcharge rule, the Board publishes the aggregate global indicator amounts each year as denominated in U.S. dollars using the euro-dollar exchange rate provided by the BCBS.\3\ --------------------------------------------------------------------------- \3\ 12 CFR 217.404(b)(1)(i)(B); 80 FR 49082, 49086-87 (August 14, 2015). See also 81 FR 1948 (January 14, 2016). The indicators provided by the BCBS were converted to U.S. dollars using a euro- dollar exchange rate of 1.0887, which was the daily euro to U.S. dollar spot rate on December 31, 2015 as published by the European Central Bank (available at http://www.ecb.europa.eu/stats/eurofxref/index.en.html). --------------------------------------------------------------------------- The aggregate global indicator amounts for purposes of the Method 1 score calculation for 2016 under Sec. 217.404(b)(1)(i)(B) of the GSIB surcharge rule are: Aggregate Global Indicator Amounts in U.S. Dollars (USD) for 2016 ------------------------------------------------------------------------ Aggregate global Category Systemic indicator amount (in indicator USD) ------------------------------------------------------------------------ Size......................... Total exposures. $79,320,039,989,625 Interconnectedness........... Intra-financial 8,816,910,460,396 system assets. Intra-financial 9,687,826,596,896 system liabilities. Securities 13,608,077,367,510 outstanding. Substitutability............. Payments 2,463,117,556,410,060 activity. Assets under 139,725,689,815,229 custody. Underwritten 6,479,589,781,461 transactions in debt and equity markets. Complexity................... Notional amount 606,217,201,548,411 of over-the- counter (OTC) derivatives. Trading and 3,543,254,277,404 available-for- sale (AFS) securities. Level 3 assets.. 637,946,551,935 Cross-jurisdictional activity Cross- 19,333,877,366,660 jurisdictional 17,293,028,759,406 claims. Cross- jurisdictional liabilities. ------------------------------------------------------------------------ Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p-l, 1831w, 1835, 1844(b), 1851, 3904, 3906-3909, 4808, 5365, 5368, 5371. By order of the Board of Governors of the Federal Reserve System, acting through the Director of the Division of Supervision and Regulation under delegated authority, December 22, 2016. Robert deV. Frierson, Secretary of the Board. [FR Doc. 2016-31371 Filed 12-27-16; 8:45 am] BILLING CODE P
![95612 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices
[FR Doc. 2016–31386 Filed 12–27–16; 8:45 am] Restricted’’, with the confidential Chillicothe, Missouri; Fred H. Reed,
BILLING CODE 8070–01–P material clearly marked on each page. Johnston, Iowa; Honor Joel Sears,
• A public version of your reply with Spokane, Washington; as a group acting
the confidential information excluded in concert, to acquire more than 10
FEDERAL MARITIME COMMISSION or redacted, marked ‘‘Public Version— percent of the voting shares of Farmers
confidential materials excluded.’’ and Merchants Bancorp, and thereby
[Petition No. P4–16] The Petition will be posted on the indirectly control Farmers & Merchants
Commission’s Web site at http:// State Bank, both in Winterset, Iowa.
Petition of the Coalition for Fair Port www.fmc.gov/P4-16. Replies filed in
Practices for Rulemaking; Notice of Board of Governors of the Federal Reserve
response to this Petition also will be System, December 22, 2016.
Filing and Request for Comments posted on the Commission’s Web site at Yao-Chin Chao,
Notice is hereby given that the this location. Assistant Secretary of the Board.
Coalition for Fair Port Practices Parties participating in this
[FR Doc. 2016–31360 Filed 12–27–16; 8:45 am]
(hereinafter Petitioner), has petitioned proceeding may elect to receive service
BILLING CODE 6210–01–P
the Commission pursuant to 46 CFR of the Commission’s issuances in this
502.51 of the Commission’s Rules of proceeding through email in lieu of
Practice and Procedure, to initiate a service by U.S. mail. A party opting for FEDERAL RESERVE SYSTEM
rulemaking ‘‘to clarify what constitutes electronic service shall advise the Office
‘just and reasonable rules and practices’ of the Secretary in writing and provide [Docket No. 1530; RIN 7100 AE 44]
with respect to the assessment of an email address where service can be
made. Regulation Q; Regulatory Capital
demurrage, detention, and per diem Rules: Risk-Based Capital Surcharges
charges by ocean common carriers and Rachel E. Dickon, for Global Systemically Important Bank
marine terminal operators when ports Assistant Secretary. Holding Companies
are congested or otherwise
[FR Doc. 2016–31356 Filed 12–27–16; 8:45 am]
inaccessible.’’ AGENCY: Board of Governors of the
BILLING CODE 6731–AA–P
Petitioner proposes and provides the Federal Reserve System (Board).
text of a proposed rule and submits ACTION: Notice.
fifteen verified statements or supporting
letters from its members which include FEDERAL RESERVE SYSTEM SUMMARY: Under the rule of the Board
‘‘a broad cross-section of industry regarding risk-based capital surcharges
Change in Bank Control Notices; for global systemically important bank
stakeholders, including shippers, Acquisitions of Shares of a Bank or
receivers, motor carriers, port draymen, holding companies (GSIB surcharge
Bank Holding Company rule), the Board is providing notice of
freight forwarders, 3PLs, and customs
brokers.’’ The notificants listed below have the aggregate global indicator amounts
In order for the Commission to make applied under the Change in Bank for purposes of a calculation that is
a thorough evaluation of the Petition, Control Act (12 U.S.C. 1817(j)) and required under the GSIB surcharge rule
interested persons are requested to § 225.41 of the Board’s Regulation Y (12 for 2016.
submit views or arguments in reply to CFR 225.41) to acquire shares of a bank DATES: Effective: December 28, 2016.
the Petition no later than February 28, or bank holding company. The factors FOR FURTHER INFORMATION CONTACT: Juan
2017. Replies shall consist of an original that are considered in acting on the C. Climent, Manager, (202) 872–7526, or
and 5 copies, be directed to the notices are set forth in paragraph 7 of Holly Kirkpatrick, Supervisory
Assistant Secretary, Federal Maritime the Act (12 U.S.C. 1817(j)(7)). Financial Analyst, (202) 452–2796,
Commission, 800 North Capitol Street The notices are available for Division of Supervision and Regulation;
NW., Washington, DC 20573–0001, and immediate inspection at the Federal or Mark Buresh, Senior Attorney, (202)
be served on Petitioner’s counsel, Karyn Reserve Bank indicated. The notices 452–5270, or Mary Watkins, Attorney,
A. Booth, Thompson Hine LLP, 1919 M also will be available for inspection at (202) 452–3722, Legal Division. Board of
Street NW., Suite 700, Washington, DC the offices of the Board of Governors. Governors of the Federal Reserve
20036. A PDF copy of the reply must Interested persons may express their System, 20th and C Streets NW.,
also be sent to secretary@fmc.gov. views in writing to the Reserve Bank Washington, DC 20551. For the hearing
Include in the email subject line indicated for that notice or to the offices impaired only, Telecommunications
‘‘Petition No. P4–16.’’ of the Board of Governors. Comments Device for the Deaf (TDD) users may
Replies containing confidential must be received not later than January contact (202) 263–4869.
information should not be submitted by 11, 2017. SUPPLEMENTARY INFORMATION: The
email. The Commission will provide A. Federal Reserve Bank of Chicago Board’s GSIB surcharge rule establishes
confidential treatment for identified (Colette A. Fried, Assistant Vice a methodology to identify global
confidential information to the extent President) 230 South LaSalle Street, systemically important bank holding
allowed by law. A reply containing Chicago, Illinois 60690–1414: companies in the United States (GSIBs)
confidential information must include: 1. James W. Mease, Winterset, Iowa; based on indicators that are correlated
• A transmittal letter requesting James W. Mease Profit Sharing & 401(k), with systemic importance.1 Under the
confidential treatment that identifies the Winterset, Iowa; Justin Mease, Ankeny, GSIB surcharge rule, a firm must
specific information in the reply for Iowa; Sue A. Mease, Winterset, Iowa;
sradovich on DSK3GMQ082PROD with NOTICES
calculate its GSIB score using a specific
which protection is sought and Jane M. Reed Revocable Trust, Jane M. formula (Method 1). Method 1 uses five
demonstrates that the information is a Reed Trustee, Winterset, Iowa; John B. equally weighted categories that are
trade secret or other confidential Reed Revocable Trust, John B. Reed correlated with systemic importance—
research, development, or commercial Trustee, Winterset, Iowa; April size, interconnectedness, cross-
information. Schaefer, Cedar Rapids, Iowa; David jurisdictional activity, substitutability,
• A confidential copy of the reply, Trask, Winterset, Iowa; Judith Trask,
clearly marked ‘‘Confidential- Winterset, Iowa; Mary Reed Alles, 1 See 12 CFR 217.402, 217.404.
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![Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices 95613
and complexity—and subdivided into measure of a firm’s reliance on that year. The BCBS publicly releases
twelve systemic indicators. For each wholesale funding (instead of these values, denominated in euros,
indicator, a firm divides its own substitutability).2 each year. Pursuant to the GSIB
measure of each systemic indicator by The aggregate global indicator surcharge rule, the Board publishes the
an aggregate global indicator amount. amounts used in the score calculation aggregate global indicator amounts each
The firm’s Method 1 score is the sum of under Method 1 are based on data year as denominated in U.S. dollars
its weighted systemic indicator scores collected by the Basel Committee on using the euro-dollar exchange rate
expressed in basis points. The GSIB Banking Supervision (BCBS). The BCBS provided by the BCBS.3
amounts are determined based on the
surcharge for the firm is then the higher The aggregate global indicator
sum of the systemic indicator scores of
of the GSIB surcharge determined under amounts for purposes of the Method 1
the 75 largest U.S. and foreign banking
Method 1 and a second method that organizations as measured by the BCBS, score calculation for 2016 under
weights size, interconnectedness, cross- and any other banking organization that § 217.404(b)(1)(i)(B) of the GSIB
jurisdictional activity, complexity, and a the BCBS includes in its sample total for surcharge rule are:
AGGREGATE GLOBAL INDICATOR AMOUNTS IN U.S. DOLLARS (USD) FOR 2016
Aggregate global
Category Systemic indicator indicator amount
(in USD)
Size ..................................................................................... Total exposures .................................................................. $79,320,039,989,625
Interconnectedness ............................................................ Intra-financial system assets .............................................. 8,816,910,460,396
Intra-financial system liabilities ........................................... 9,687,826,596,896
Securities outstanding ........................................................ 13,608,077,367,510
Substitutability ..................................................................... Payments activity ............................................................... 2,463,117,556,410,060
Assets under custody ......................................................... 139,725,689,815,229
Underwritten transactions in debt and equity markets ...... 6,479,589,781,461
Complexity .......................................................................... Notional amount of over-the-counter (OTC) derivatives .... 606,217,201,548,411
Trading and available-for-sale (AFS) securities ................. 3,543,254,277,404
Level 3 assets .................................................................... 637,946,551,935
Cross-jurisdictional activity ................................................. Cross-jurisdictional claims .................................................. 19,333,877,366,660
Cross-jurisdictional liabilities .............................................. 17,293,028,759,406
Authority: 12 U.S.C. 248(a), 321–338a, banks and nonbanking companies President) 1 Memorial Drive, Kansas
481–486, 1462a, 1467a, 1818, 1828, 1831n, owned by the bank holding company, City, Missouri 64198–0001:
1831o, 1831p–l, 1831w, 1835, 1844(b), 1851, including the companies listed below.
3904, 3906–3909, 4808, 5365, 5368, 5371. 1. Farmers State Bancshares, Inc.,
The applications listed below, as well Dodge, Nebraska; to merge with Farmers
By order of the Board of Governors of the
as other related filings required by the State Bancshares II, Inc., parent of
Federal Reserve System, acting through the
Director of the Division of Supervision and Board, are available for immediate Farmers State Bank, both in Spencer,
Regulation under delegated authority, inspection at the Federal Reserve Bank Nebraska.
December 22, 2016. indicated. The applications will also be
B. Federal Reserve Bank of St. Louis
Robert deV. Frierson, available for inspection at the offices of
(David L. Hubbard, Senior Manager)
Secretary of the Board. the Board of Governors. Interested
P.O. Box 442, St. Louis, Missouri
[FR Doc. 2016–31371 Filed 12–27–16; 8:45 am]
persons may express their views in
63166–2034. Comments can also be sent
writing on the standards enumerated in
BILLING CODE P
the BHC Act (12 U.S.C. 1842(c)). If the electronically to
proposal also involves the acquisition of Comments.applications@stls.frb.org:
FEDERAL RESERVE SYSTEM a nonbanking company, the review also 1. Reliable Community Bancshares,
includes whether the acquisition of the Inc., Perryville, Missouri; to acquire Mid
Formations of, Acquisitions by, and nonbanking company complies with the America Banking Corporation, Rolla,
Mergers of Bank Holding Companies standards in section 4 of the BHC Act Missouri, and thereby indirectly acquire
(12 U.S.C. 1843). Unless otherwise Mid America Bank & Trust Company,
The companies listed in this notice noted, nonbanking activities will be Dixon, Missouri.
have applied to the Board for approval, conducted throughout the United States.
pursuant to the Bank Holding Company 2. MAB Acquisition Corp., Perryville,
Act of 1956 (12 U.S.C. 1841 et seq.) Unless otherwise noted, comments Missouri; to become a bank holding
(BHC Act), Regulation Y (12 CFR part regarding each of these applications company by acquiring Mid America
225), and all other applicable statutes must be received at the Reserve Bank Banking Corporation, Rolla, Missouri,
and regulations to become a bank indicated or the offices of the Board of and thereby indirectly acquiring Mid
holding company and/or to acquire the Governors not later than January 23, America Bank & Trust Company, Dixon,
assets or the ownership of, control of, or 2017. Missouri.
sradovich on DSK3GMQ082PROD with NOTICES
the power to vote shares of a bank or A. Federal Reserve Bank of Kansas
bank holding company and all of the City (Dennis Denney, Assistant Vice
2 The second method (Method 2) uses similar 3 12 CFR 217.404(b)(1)(i)(B); 80 FR 49082, 49086– to U.S. dollar spot rate on December 31, 2015 as
inputs to those used in Method 1, but replaces the 87 (August 14, 2015). See also 81 FR 1948 (January published by the European Central Bank (available
substitutability category with a measure of a firm’s 14, 2016). The indicators provided by the BCBS at http://www.ecb.europa.eu/stats/eurofxref/
use of short-term wholesale funding. In addition, were converted to U.S. dollars using a euro-dollar index.en.html).
Method 2 is calibrated differently from Method 1. exchange rate of 1.0887, which was the daily euro
VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1](https://thefederalregister.org/doc/81_FR_95861/page/2.svg)
Document Created: 2016-12-28 02:17:02
Document Modified: 2016-12-28 02:17:02
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | Effective: December 28, 2016. | |
| Contact | Juan C. Climent, Manager, (202) 872- 7526, or Holly Kirkpatrick, Supervisory Financial Analyst, (202) 452- 2796, Division of Supervision and Regulation; or Mark Buresh, Senior Attorney, (202) 452-5270, or Mary Watkins, Attorney, (202) 452-3722, Legal Division. Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. For the hearing impaired only, Telecommunications Device for the Deaf (TDD) users may contact (202) 263-4869. | |
| FR Citation | 81 FR 95612 |
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