83 FR 12395 - Agency Information Collection Activities; Announcement of Board Approval Under Delegated Authority and Submission to OMB

FEDERAL RESERVE SYSTEM

Federal Register Volume 83, Issue 55 (March 21, 2018)

The Board of Governors of the Federal Reserve System (Board) is adopting a proposal to extend for three years, with revision, the mandatory Financial Statements for Holding Companies (FR Y-9) (OMB No. 7100-0128).

[Federal Register Volume 83, Number 55 (Wednesday, March 21, 2018)]
[Notices]
[Pages 12395-12397]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-05666]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities; Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is adopting a proposal to extend for three years, with revision, the 
mandatory Financial Statements for Holding Companies (FR Y-9) (OMB No. 
7100-0128).

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829. Telecommunications Device for the Deaf (TDD) users may 
contact (202) 263-4869, Board of Governors of the Federal Reserve 
System, Washington, DC 20551. OMB Desk Officer--Shagufta Ahmed--Office 
of Information and Regulatory Affairs, Office of Management and Budget, 
New Executive Office Building, Room 10235, 725 17th Street NW, 
Washington, DC 20503 or by fax to (202) 395-6974.

SUPPLEMENTARY INFORMATION: 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. Board-approved collections of information are 
incorporated into the official OMB inventory of currently approved 
collections of information. Copies of the Paperwork Reduction Act 
Submission, supporting statements and approved collection of 
information instrument(s) are placed into OMB's public docket files. 
The Federal Reserve may not conduct or sponsor, and the respondent is 
not required to respond to, an information collection that has been 
extended, revised, or implemented on or after October 1, 1995, unless 
it displays a currently valid OMB control number.

Final Approval Under OMB Delegated Authority of the Extension for Three 
Years, With Revision, of the Following Report

    Report title: Consolidated Financial Statements for Holding 
Companies, Parent Company Only Financial Statements for Large Holding 
Companies, Parent Company Only Financial Statements for Small Holding 
Companies, Financial Statement for Employee Stock Ownership Plan 
Holding Companies, and the Supplement to the Consolidated Financial 
Statements for Holding Companies.
    Agency form number: FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9ES, and FR 
Y-9CS.
    OMB control number: 7100-0128.
    Frequency: Quarterly and semiannually.
    Reporters: Bank holding companies (BHCs), savings and loan holding 
companies, securities holding companies, and U.S. Intermediate Holding 
Companies (IHCs) (collectively, holding companies (HCs)).
    Estimated annual reporting hours: FR Y-9C (non-advanced approaches 
holding companies): 119,094 hours; FR Y-9C (advanced approached holding 
companies): 3,482 hours; FR Y-9LP: 16,442 hours; FR Y-9SP: 42,001; FR 
Y-9ES: 40 hours; FR Y-9CS: 472 hours.
    Estimated average hours per response: FR Y-9C (non-advanced 
approaches holding companies): 47.11 hours; FR Y-9C (advanced 
approached holding companies HCs): 48.36 hours; FR Y-9LP: 5.27 hours; 
FR Y-9SP: 5.40 hours; FR Y-9ES: 0.50 hours; FR Y-9CS: 0.50 hours.
    Number of respondents: FR Y-9C (non-advanced approaches holding 
companies): 632; FR Y-9C (advanced approached holding companies): 18; 
FR Y-9LP: 780; FR Y-9SP: 3,889; FR Y-9ES: 80; FR Y-9CS: 236.
    General description of report: Pursuant to the Bank Holding Company 
Act of 1956 (BHC Act), as amended, and the Home Owners' Loan Act 
(HOLA), the Federal Reserve requires HCs to provide standardized 
financial statements to fulfill the Federal Reserve's statutory 
obligation to supervise these organizations. HCs file the FRY-9C and FR 
Y-9LP quarterly, and the FR Y-9SP semiannually, the FR Y-9ES annually, 
and the FR Y-9CS on a schedule that is determined when this supplement 
is used.
    Proposed revisions: The Board is implementing a number of revisions 
to the FR Y-9C requirements, most of which are consistent with the 
recent changes to the Federal Financial Institutions Examination 
Council (FFIEC) Consolidated Reports of Condition and Income (Call 
Reports) (FFIEC 031, FFIEC 041, and FFIEC 051; OMB No. 7100-0036). The 
revisions to the FR Y-9C include deletions, consolidations of existing 
data items into new data items, reductions in reporting frequency, and 
new and revised reporting thresholds for certain data items. The Board 
is also making changes to the reporting forms and instructions for the 
FR Y-9C, FR Y-9LP, and FR Y-9SP to implement accounting changes 
pertaining to equity securities under Accounting Standards update (ASU 
No. 2016-01, ``Recognition and Measurement of Financial Assets and 
Financial Liabilities.''). The accounting changes pertaining to equity 
securities would be effective beginning with the reports reflecting the 
March 31, 2018, report date and June 30, 2018 for all other changes. 
The changes include:
     Deleting and combining of certain data items pertaining to 
(1) Goodwill and Other intangible assets from Schedule HC, Balance 
Sheet; (2) U.S. Government agency obligations and structured financial 
products from Schedule HC-B, Securities; (3) Structured financial 
products and certain loans and the unpaid principal balance of such 
loans on Schedule HC-D, Trading Assets; (4) Certain over-the counter 
derivatives on Schedule HC-L, Derivatives and Off-Balance sheet items, 
and (5) Purchased credit card relationships and nonmortgage servicing 
assets from Schedule HC-M, Memoranda;
     Deleting two preprinted captions for other noninterest 
income on Schedule HI, Income Statement and certain data items on 
Schedule HC-D, Trading Assets and Liabilities;
     Deleting Column B (Domestic Office) from Schedule HC-D, 
Trading Assets and Liabilities;
     Reducing the reporting frequency from quarterly to 
semiannual and from quarterly to annual for certain data items on the 
FR Y-9C report;
     Increasing and adding reporting thresholds for certain 
data items in four FR Y-9C schedules;
     Revising the reporting forms and instructions to implement 
the reporting

[[Page 12396]]

of equity securities under ASU-2016-0;1 and
     Moving the reporting of ``Goodwill'' from Schedule HC to 
Schedule HC-M, Memoranda.
    Effective Date: March 31, 2018, for accounting changes pertaining 
to equity securities; June 30, 2018, for all other changes.
    Legal authorization and confidentiality: The FR Y-9 family of 
reports is authorized by section 5(c) of the BHC Act (12 U.S.C. 
1844(c)), section 10 of HOLA (12 U.S.C. 1467a(b)), sections 165 and 618 
of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 
U.S.C. 1850a(c)(1) and 5365), and section 252.153(b)(2) of Regulation 
YY (12 CFR 252.153(b)(2)). These reports are mandatory. In general, the 
Board does not consider the financial data in these reports to be 
confidential. However, a respondent may request confidential treatment 
pursuant to sections (b)(4), (b)(6), and (b)(8) of the Freedom of 
Information Act (5 U.S.C. 552(b)(4), (b)(6), and (b)(8)). The 
applicability of these exemptions will be reviewed on a case-by-case 
basis.
    Effective Date: March 31, 2018 and June 30, 2018.
    Current Actions: On January 2, 2018, the Board published a notice 
in the Federal Register (83 FR 123) requesting public comment for 60 
days on the proposal to extend with revision the FR Y-9 family of 
reports. The comment period expired on March 5, 2018. The Board 
received one comment from a banking association. A detailed discussion 
of the responses to comment is provided below. The Board has approved, 
pursuant to authority delegated by the OMB, the collections of 
information as proposed and amended (as discussed below). The Final 
proposal is unchanged from the version that went out for public 
comment, except for the addition of the instructional clarification 
discussed below.
    Detailed Discussion of Public Comment: While supporting the Federal 
Reserve's efforts to align the FR Y-9 series with the Call Report, a 
banking association recommended that revisions to the FR Y-9 reports 
occur only once a year, that those revisions become effective on March 
31, and that the finalization of revisions occur prior to September 30 
of the previous year in order to allow HCs sufficient time to implement 
the revisions.
    In the past, the Board typically has followed a schedule of making 
revisions only once per year, generally starting in the March 31 
report. However, the proposal is part of a three-phase process 
occurring over the course of the last year to align the FR Y-9 series 
with the three-phase process for the Call Reports. As a result, certain 
revisions to the FR Y-9 reports made through the current process have 
or will become effective with reports reflecting dates other than March 
31. The Board will strive to return to an annual schedule for future 
revisions, with revisions becoming effective for the March 31 report, 
unless the revisions must be implemented at a different time due to 
changes in law, regulation, or accounting standards. With respect to 
the time HCs are given to implement revisions to the FR Y-9C reports, 
the Board notes, however, that it is important to have such changes 
become on the same timeline as changes to the Call Reports, to prevent 
inconsistencies between the FR Y-9C reports and the Call Reports. In 
the future, the Board will strive to provide more lead time for firms 
to implement revisions to the FR Y-9 reports while also ensuring 
alignment with the Call Report.
    Additionally, the commenter urged the Board to conduct a 
comprehensive review of all reports that it requires banks and their 
affiliates to file, including the identification and removal of 
obsolete, overlapping, or unnecessary line items and a review of the 
threshold indicators (such as size and complexity) that institutions 
must meet before they are required to provide data on various products 
and activities.
    In lieu of conducting a comprehensive review of all reports 
simultaneously, the Board performs a thorough review of each regulatory 
report at least every three years as part of the Paperwork Reduction 
Act (PRA) review process. The PRA review process led to burden-reducing 
changes recently, for example, when the Board terminated the FR 2052b, 
and the Board recently proposed burden-reducing changes, for example, 
for the FR Y-8.\1\ Also, in 2015, the Board raised the asset threshold 
of its Small Bank Holding Company Policy Statement, which allows 
qualifying holding companies to operate with higher levels of debt than 
would normally be permitted, from $500 million to $1 billion. The Board 
also raised the threshold for reporting the FR Y-9C from $500 million 
to $1 billion. In March 2017, the Board, together with the Federal 
Deposit Insurance Corporation and the Office of the Comptroller of the 
Currency (together, the ``Agencies''), issued a report pursuant to the 
Economic Growth and Regulatory Paperwork Reduction Act of 1996 
(``EGRPRA''), which also included several initiatives to reduce burden. 
Because the Board's current process frequently leads to the types of 
changes that the commenter suggested could result from a comprehensive 
review, the Board will not be adopting the approach advocated by the 
commenter.
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    \1\ The Liquidity Monitoring Report (FR 2052b) (OMB No. 7100-
0361) and the Bank Holding Company Report of Insured Depository 
Institutions' Section 23A Transactions with Affiliates (FR Y-8) (OMB 
No. 7100-0126).
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    The commenter recommended that the Board establish an industry task 
force or advisory committee to help identify outdated or overlapping 
data items in Federal Reserve reports and identify burdens associated 
with these reports. In response to this comment, the Board plans to 
continue to offer outreach in connection with significant revisions to 
the FR Y-9C reports. Additionally, the Board frequently responds to 
questions from individual institutions regarding the requirements of 
the FR Y-9C reports and often addresses issues that could affect 
multiple institutions through quarterly correspondence to affected 
institutions. As required under the PRA, the Federal Reserve also 
offers an opportunity for the public to comment on proposed changes to 
the FR Y-9C report or to make any additional suggestions for improving, 
streamlining, or clarifying the FR Y-9C report. As a result, the Board 
will not establish an industry task force or advisory committee as 
advocated by the commenter.
    The commenter further noted that two recent or pending amendments 
to U.S. Generally Accepted Accounting Practices (GAAP) would create 
inconsistencies between the requirements of the FR Y-9C family of 
reports and GAAP. These proposals concern accounting for leases (ASU 
2016-02) and pensions (ASU 2017-07).\2\ The Board will consult with the 
Federal Deposit Insurance Corporation (``FDIC'') and the Office of the 
Comptroller of the

[[Page 12397]]

Currency regarding these accounting changes.
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    \2\ The commenter noted that in the 12/31/2017 FR Y-9C 
Supplemental Instructions, institutions were instructed to report 
the (right-to-use) ROU asset under the new lease accounting standard 
in Schedule HC, item 6, Premises and fixed assets, and the related 
lease liability in Schedule HC-M, item 14, Other borrowed money. The 
commenter stated that this reporting is inconsistent with GAAP and 
that the new accounting standard, operating lease ROU assets and 
operating lease liabilities should generally not be reported in the 
same line as finance lease assets and liabilities because this 
creates a seemingly unnecessary conflict between regulatory 
reporting and U.S. GAAP reporting. Additionally, the commenter noted 
that guidance pertaining to the accounting for pension expenses (ASU 
2017-07) that became effective January 1, 2018 were not included in 
the FR Y-9C December 31, 2017 Supplemental instructions and that the 
current instructions on the FR Y-9C and the Call Report need to be 
updated to incorporate the new accounting changes.
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    The commenter noted that the proposal to add a reporting threshold 
of $10 billion or more in total trading assets on Schedule HC-D, 
memorandum items 2 through 10, and the proposal to add a reporting 
threshold of $10 million or more in total trading assets in any of the 
four preceding calendar quarters on Schedule HC-K, line item 4, should 
be updated to add language for meeting the FDIC's definition of a large 
or highly complex institution,\3\ similar to a Call Report change that 
is effective, June 30, 2018. In response, the Board will not require 
institutions that meet the FDIC's definition of a large or highly 
complex institution that is used for deposit insurance assessment 
purposes to report these items because these data are not needed at the 
holding company level; however, the Board will allow these institutions 
to provide the data on a voluntary basis if it is easier to be 
consistent with their Call Report filings. Additionally, the commenter 
asked for clarification on whether the proposed $10 billion threshold 
on Schedule HC-D, memorandum items 2 through 10, is based on the prior 
four quarters or a point in time. In response, the report form has been 
revised to indicate that this reporting threshold is based on trading 
assets as of the end of each quarter.
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    \3\ Schedule RC-O, Memoranda item 6 of the Call Report 
instructions has detailed information on the FDIC's definition of a 
large or highly complex institution.
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    The commenter noted several inconsistences on the FR Y-9C 
instructions when compared to the Call Report pertaining to the 
implementation of equity securities and various other line item 
discrepancies. The Call Report instructions were updated after the 
publication of the FR Y-9 proposal. The Board agrees with these changes 
and has revised the FR Y-9C family of forms so that they align all 
applicable line items to the Call Report. Additional editorial updates 
to the report form and instructions have been made to address the 
comments pertaining to the FR Y-9LP report.
    The revisions will be implemented, as proposed, with the changes in 
response to the comment noted above. Modifications for all changes 
would be effective for reports reflecting the June 30, 2018, report 
date, except that the modifications for equity securities would be 
effective for reports reflecting the March 31, 2018, report date.

    Board of Governors of the Federal Reserve System, March 15, 
2018.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2018-05666 Filed 3-20-18; 8:45 am]
 BILLING CODE 6210-01-P