83 FR 18843 - Proposed Agency Information Collection Activities; Comment Request

FEDERAL RESERVE SYSTEM

Federal Register Volume 83, Issue 83 (April 30, 2018)

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

[Federal Register Volume 83, Number 83 (Monday, April 30, 2018)]
[Notices]
[Pages 18843-18846]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09000]


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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, request for comment.

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

DATES: Comments must be submitted on or before June 29, 2018.

ADDRESSES: You may submit comments, identified by FR Y-9C, FR Y-9LP, FR 
Y-9SP, FR Y-9ES, or FR Y-9CS, by any of the following methods:
     Agency Website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Email: [email protected]. Include OMB 
number in the subject line of the message.
     FAX: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, 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 website 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 
3515, 1801 K Street (between 18th and 19th Streets NW) Washington, DC 
20006 between 9:00 a.m. and 5:00 p.m. on weekdays. For security 
reasons, the Board requires that visitors make an appointment to 
inspect comments. You may do so by calling (202) 452-3684. Upon 
arrival, visitors will be required to present valid government-issued 
photo identification and to submit to security screening in order to 
inspect and photocopy comments.
    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: 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, if approved. These documents will also be made available 
on the Federal Reserve Board's public website at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears below.
    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.

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. 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.
    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.
    At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the Federal 
Reserve should modify the proposal.
    Proposal to approve under OMB delegated authority the extension for 
three years, with revision, of the following reports:
    Report title: 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, semiannually, and annually.
    Reporters: Bank holding companies, savings and loan holding 
companies, securities holding companies, and U.S. Intermediate Holding 
Companies (collectively, holding companies (HCs)).
    Estimated average hours per response: FR Y-9C (non-advanced 
approaches holding companies): 46.29 hours; FR Y-9C (advanced 
approached holding companies HCs): 47.54 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.
    Estimated number of respondents: FR Y-9C (non-advanced approaches 
holding companies): 623; FR Y-9C (advanced approached holding 
companies): 18; FR Y-9LP: 761; FR Y-9SP: 3,613 FR Y-9ES: 84; FR Y-9CS: 
236.
    Estimated annual burden hours: FR Y-9C (non-advanced approaches 
holding companies): 115,355 hours; FR Y-9C (advanced approached holding 
companies): 3,423 hours; FR Y-9LP: 16,042 hours; FR Y-9SP: 39,020; FR 
Y-9ES: 42 hours; FR Y-9CS: 472 hours.
    General description of report: The FR Y-9C serves as standardized 
financial statements for the consolidated holding company. The FR Y-9 
family of reporting forms continues to be the primary source of 
financial data on HCs that examiners rely on between on-site 
inspections. Financial data from these reporting forms is used to 
detect emerging financial problems, review performance, conduct pre-
inspection analysis, monitor and evaluate capital adequacy, evaluate HC 
mergers and

[[Page 18844]]

acquisitions, and analyze an HC's overall financial condition to ensure 
the safety and soundness of its operations. The Board requires HCs to 
provide standardized financial statements to fulfill the Board's 
statutory obligation to supervise these organizations. HCs file the 
FRY-9C on a quarterly basis, 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 proposing a number of revisions to the FR Y-9C 
requirements, most of which are consistent with proposed 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 proposed revisions to the FR Y-
9C include deleting certain data items, consolidating existing data 
items into new data items, and adding new or raising existing reporting 
thresholds for certain data items to reduce reporting burden. As 
discussed below, all of the proposed changes resulted from an extensive 
analysis of the uses of Call Report data which is generally aggregated 
on the FR Y-9C report, to include a series of nine surveys conducted 
over a 19-month period that began in mid-July 2015 and ended in mid-
February 2017. Based on the results of the user surveys, the Board 
identified data items to be considered for removal and new or revised 
reporting thresholds to reduce burden. The Board believes that 
consistent changes should be made to the FR Y-9C to ensure burden 
reductions are fully realized. Additional detail on specific line items 
that will be revised are discussed below. The proposed revisions would 
be effective beginning with the reports reflecting the June 30, 2018, 
report date. The proposed changes include:
     Combining certain data items into new or existing data 
items pertaining to
    (1) Interest-only strips on Schedule HC-F--Other Assets;
    (2) Certain 1-4 family residential mortgage banking activities on 
Schedule HC-P;
    (3) Loans measured at fair value and the unpaid principal balances 
of such loans on HC-Q--Memoranda;
    (4) Certain types of credit exposures, ownership interests, credit 
exposures to securitization facilities sponsored by HCs, and 
transactions involving small business obligations on Schedule HC-S; and
    (5) Certain detail on Schedule HC-V--Variable Interest Entities 
(VIEs), on consolidated VIEs used as asset-backed commercial paper 
(ABCP) conduits and certain detail on other VIEs;
     Deleting certain data items on Schedules HC-N--Past Due 
and Nonaccrual Loans, Leases, and Other Assets; HC-P--1-4 Family 
Residential Mortgage Banking Activities in Domestic Offices; HC-Q--
Assets and Liabilities Measured at Fair Value on a Recurring Basis-
Memoranda; and Schedule HC-S--Servicing, Securitization, and Asset Sale 
Activities; and
     Adding new and revising existing reporting thresholds for 
certain data items on Schedule HC-P, HC-Q, and HC-S.

Detailed Discussion of Proposed Revisions

Schedule HC-F--Other Assets

    The Board proposes to combine the reporting of interest-only strips 
receivable on Schedule HC-F, which are currently reported in data items 
3(a) for those on mortgage loans and 3(b) for those on other financial 
assets, into a single new item 3, Interest-only strips receivable.

Schedule HC-N--Past Due and Nonaccrual Loans, Leases, and Other Assets

    The Board proposes to delete Schedule HC-N, Memoranda, data items 
5(b)(1) and 5(b)(2), columns A through C pertaining to past due and 
nonaccrual status of the fair value and unpaid principal balance of 
held-for-investment loans measured at fair value. Memorandum item 5(a), 
``Loans and leases held for sale,'' would be renumbered as item 5 for 
columns A through C.

Schedule HC-P--1-4 Family Residential Mortgage Banking Activities in 
Domestic Offices

    The Board proposes to modify the reporting criteria for Schedule 
HC-P by removing the current $1 billion asset-sized threshold and 
applying only the Schedule's existing activity-based threshold. As 
proposed, Schedule HC-P would be completed by HCs where any of the 
following residential mortgage banking activities (in domestic offices) 
exceeds $10 million for two consecutive quarters:
     Closed-end and open-end first lien and junior lien 1-4 
family residential mortgage loan originations and purchases for resale 
from all sources during a calendar quarter;
     Closed-end and open-end first lien and junior lien 1-4 
family residential mortgage loan sales during a calendar quarter; or
     Closed-end and open-end first lien and junior lien 1-4 
family residential mortgage loans held for sale or trading at calendar 
quarter-end.
    The Board also proposes to combine a number of data items 
pertaining to 1-4 family residential mortgage banking activity detail 
collected in this schedule for closed-end loans and commitments under 
open-end loans for retail originations (item 1), wholesale originations 
and purchases (item 2), mortgage loans sold (item 3), mortgage loans 
held for sale or trading (item 4), and repurchases and indemnifications 
of mortgage loans (item 6). Specifically, the Board proposes to:
     Combine 1(a), 1(b), and 1(c)(1) into new data item 1;
     Combine 2(a), 2(b), and 2(c)(1) into new data item 2;
     Combine 3(a), 3(b), and 3(c)(1) into new data item 3;
     Combine 4(a), 4(b), and 4(c)(1) into new data item 4; and
     Combine 6(a), 6(b), and 6(c)(1) into new item 6.
    The Board also proposes to combine data items 5(a) and 5(b) 
pertaining to noninterest income from the sale, securitization, and 
servicing of closed-end and open-end 1-4 family residential mortgage 
loans into new data item 5. In addition, the Board proposes to remove 
data items 1(c)(2), 2(c)(2), 3(c)(2), 4(c)(2), and 6(c)(2) pertaining 
to the principal amount funded for open-end loans extended under lines 
of credit for each of the above listed categories.

Schedule HC-Q--Assets and Liabilities Measured at Fair Value on a 
Recurring Basis

    The Board proposes to modify the reporting criteria for Schedule 
HC-Q by applying an activity threshold. Schedule HC-Q would be 
completed only by HCs that (1) have elected to report financial 
instruments or servicing assets and liabilities at fair value under a 
fair value option with changes in fair value recognized in earnings, or 
(2) are required to complete Schedule HC-D, Trading Assets and 
Labilities. HCs that do not meet either of these criteria would no 
longer need to complete this schedule, regardless of asset size.
    The Board also proposes to delete column B (domestic offices) on 
Schedule HC-Q, for the fair value and the unpaid principal balance of 
such loans currently collected in Memorandum items 3 and 4, 
respectively. The Board proposes to combine certain existing loan 
categories in Memorandum items 3 and 4 for fair value option loans 
secured by

[[Page 18845]]

1-4 family residential properties, detail on revolving, open-end loans 
secured by 1-4 family residential properties and extended under lines 
of credit; closed-end loans secured by first liens on 1-4 family 
residential properties; and closed-end loans secured by junior liens on 
1-4 family residential properties that currently are reported for 
domestic offices in column B would be consolidated into a single 
category and collected for the consolidated HC. For fair value option 
loans secured by real estate other than 1-4 family residential 
properties, detail on construction, land development, and other land 
loans; loans secured by farmland; loans secured by multifamily (5 or 
more) residential properties; and loans secured by nonfarm 
nonresidential properties that currently are reported for domestic 
offices in column B would be consolidated into a single category and 
collected for the consolidated HC. These proposed revisions would 
replace the existing items for total fair value option loans secured by 
real estate for the consolidated HC. For fair value option consumer 
loans, detail for the consolidated HC on credit cards, other revolving 
credit plans, automobile loans, and other consumer loans would be 
consolidated into a single category. More specifically, the Board 
proposes to:
     Delete existing Memoranda items 3(a) and 4(a), column A, 
on the fair value and the unpaid principal balance of consolidated 
loans secured by real estate;
     Combine existing Memorandum items 3(a)(3)(a), 
3(a)(3)(b)(i), and 3(a)(3)(b)(ii), column B, into new Memorandum item 
3(a)(1) for the fair value of consolidated loans secured by 1-4 family 
residential properties measured at fair value;
     Combine existing Memorandum items 3(a)(1), 3(a)(2), 
3(a)(4), and 3(a)(5), column B, into new Memorandum item 3(a)(2) for 
the fair value of all other loans secured by real estate measured at 
fair value;
     Combine existing Memorandum items 3(c)(1) through 3(c)(4) 
into new Memorandum item 3(c) pertaining to the fair value of all 
consumer loans measured at fair value;
     Combine existing Memorandum items 4(a)(3)(a), 
4(a)(3)(b)(i), and 4(a)(3)(b)(ii), column B, into new Memorandum item 
4(a)(1) pertaining to the unpaid principal balance of consolidated 
loans secured by 1-4 family residential properties that are measured at 
fair value;
     Combine existing Memorandum items 4(a)(1), 4(a)(2), 
4(a)(4), and 4(a)(5), column B, into new Memorandum item 4(a)(2) 
pertaining to the unpaid principal balance of all other loans secured 
by real estate measured at fair value for the consolidated HC; and
     Combine existing Memorandum items 4(c)(1) through 4(c)(4) 
into new Memorandum item 4(c) pertaining to the unpaid principal 
balance of all consumer loans measured at fair value.

Schedule HC-S--Servicing, Securitization, and Asset Sale Activities

    The Board proposes the following revisions to Schedule HC-S:
     Combine data items 2(a), 2(b), and 2(c) into new item 2, 
columns A through G, pertaining to the maximum amount of credit 
exposure arising from recourse or other seller-provided credit 
enhancements in the form of retained interest-only strips, subordinated 
securities and other residual interests, and standby letters of credit 
and other enhancements;
     Add a reporting threshold of $100 billion or more in total 
assets before HCs must complete Schedule HC-S, data item 3, which is 
used for reporting unused commitments to provide liquidity to 
structures reported in item 1 involving assets sold and securitized by 
the reporting HC with servicing retained or with recourse or other 
seller-provided credit enhancements;
     Combine data items 6(a) and 6(b) pertaining to ownership 
(or seller's) interests carried as securities or loans into new data 
item 6. The Board also proposes to add a reporting threshold of $10 
billion or more in total consolidated assets before HCs must complete 
data item 6;
     Delete data items 7(a) and 7(b) pertaining to loan amounts 
included in ownership (or seller's) interests carried as securities 
that are 30-89 days past due and 90 days or more past due, 
respectively;
     Delete data items 8(a) and 8(b) pertaining to charge-offs 
and recoveries, respectively, on loan amounts included in the ownership 
(or seller's) interests carried as securities that are currently 
reported in 6(a);
     Combine data item 9, columns B (home equity lines) and C 
(credit card receivables), pertaining to the maximum amount of credit 
exposures arising from credit enhancements in the form standby letters 
of credit, purchased subordinated securities, and other enhancements 
provided by the reporting HC to other institutions' securitization 
structures, into existing column G, All other loans, all leases, and 
all other assets;
     Add a reporting threshold of $10 billion or more in total 
assets for reporting unused commitments to provide liquidity to other 
institutions' securitization structures in item 10. The Board also 
proposes to combine data item 10, columns B (home equity lines) and C 
(credit card receivables), pertaining to a reporting institution's 
unused commitments to provide liquidity to other institutions' 
securitization structures, respectively, into existing column G;
     Combine data item 11, columns B through F, pertaining to 
assets sold with recourse or other seller-provided credit enhancements 
and not securitized, into existing column G. The activities reported in 
columns B through F pertain to home equity lines, credit card 
receivables, auto loans, other consumer loans, and commercial and 
industrial loans, respectively;
     Combine data item 12, columns B through F, pertaining to 
the maximum amount of credit exposure arising from recourse or other 
seller-provided credit enhancements on assets sold with recourse or 
other seller-provided credit enhancements and not securitized, into 
existing column G;
     Delete Memorandum items 1(a) and 1(b) pertaining to the 
outstanding principal balance and the amount of retained recourse, 
respectively, on small business obligations transferred with recourse 
under Section 208 of the Riegle Community Development and Regulatory 
Improvement Act of 1994, and include the amounts previously reported in 
these two memorandum items in either items 1 or 2 (column F) or items 
11 and 12 (column G), depending on whether the obligations were 
securitized or not securitized, respectively; and
     Add a reporting threshold of $10 billion or more in total 
assets for reporting the detail on ABCP conduits in Memorandum items 
3(a)(1) through 3(b)(2), and the amount of outstanding credit card fees 
and finance charges included in credit card receivables sold and 
securitized with servicing retained or with recourse or other seller-
provided credit enhancements in Memorandum item 4. To complete 
Memorandum item 4, a HC with $10 billion or more in total assets would 
also need to meet one of the existing criteria for reporting this 
information, i.e., the HC, together with affiliated institutions, has 
outstanding credit card receivables that exceed $500 million as of the 
report date, or the HC is a credit card specialty HC (as defined in the 
instructions).

Schedule HC-V--Variable Interest Entities

    The Board proposes to consolidate information collected on 
consolidated VIEs used as ABCP conduits (column B)

[[Page 18846]]

and other VIEs (column C) for all items into a single column B covering 
all VIEs other than those used as securitization vehicles (which will 
continue to be reported in column A). In lieu of the detailed breakdown 
of assets and liabilities of ABCP conduit VIEs currently reported in 
column B, the Board proposes to collect data on the total assets and 
total liabilities of such VIEs in new data items 5 and 6, respectively. 
For these ABCP conduit VIEs, the total assets item would include the 
assets that could be used only to settle these VIEs' obligations, which 
are currently reported in items 1(a) through 1(k), column B, and all 
other assets of these VIEs, which are currently reported in item 3, 
column B; the total liabilities items would include these VIEs, 
liabilities for which creditors do not have recourse to the general 
credit of the reporting bank, which are currently reported in items 
2(a) through 2(e), column B, and all other liabilities of the VIEs, 
which are currently reported in item 4, column B. In the two columns 
that would remain, the Board proposes to:
     Combine data items 1(b) and 1(c), pertaining to held-to-
maturity and available-for-sale securities, into a single new item 
1(b), Securities not held for trading;
     Combine data items 1(e) through 1(g), pertaining to loans 
and leases held for sale, loans and leases held for investment, and the 
allowance for loan and lease losses, into a single new item 1(c), Loans 
and leases held for investment, net of allowance, and held for sale;
     Combine data items 2(c) and 2(d), pertaining to commercial 
paper and other borrowed money, into a single new item 2(a), Other 
borrowed money;
     Delete data items 1(d), 1(h), and 1(i), pertaining to 
securities purchased under agreements to resell, trading assets (other 
than derivatives), and derivative trading assets. The data currently 
reported in these items would be included in existing data item 1(k), 
Other assets, which would be renumbered as data item 1(e). Existing 
data item 1(j) Other real estate owned would be renumbered 1(d); and
     Delete VIE detail on data items 2(a) and 2(b), pertaining 
to securities sold under agreements to repurchase and derivative 
trading liabilities. The data currently reported in these items would 
be included in existing data item 2(e), Other liabilities, which would 
be renumbered as data item 2(b).
    Legal authorization and confidentiality: The FR Y-9 family of 
reports is authorized by section 5(c) of the Bank Holding Company Act 
(12 U.S.C. 1844(c)), section 10 of Home Owners' Loan Act (12 U.S.C. 
1467a(b)) and section 618 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (``Dodd-Frank Act'') (12 U.S.C. 1850a(c)(1)), 
and section 165 of the Dodd-Frank Act (12 U.S.C. 5365). The obligation 
of covered institutions to report this information is mandatory.
    With respect to the FR Y-9LP, FR Y-9SP, FR Y-9ES, FR Y-9CS, as well 
as most items on the FR Y-9C, the information collected would generally 
not be accorded confidential treatment. If confidential treatment is 
requested by a respondent, the Board will review the request to 
determine if confidential treatment is appropriate.
    With respect to the FR Y-9C, Schedule HI's item 7(g) ``FDIC deposit 
insurance assessments,'' Schedule HC-P's item 7(a) ``Representation and 
warranty reserves for 1-4 family residential mortgage loans sold to 
U.S. government agencies and government sponsored agencies,'' and 
Schedule HC-P's item 7(b) ``Representation and warranty reserves for 1-
4 family residential mortgage loans sold to other parties'' are 
considered confidential. Such treatment is appropriate because the data 
is not publicly available and could cause substantial harm to the 
competitive position of the respondent. The public release of this 
confidential data may impair the Board's future ability to collect 
similarly confidential data. Thus, this information may be kept 
confidential under exemptions (b)(4) of the Freedom of Information Act, 
which exempts from disclosure ``trade secrets and commercial or 
financial information obtained from a person and privileged or 
confidential'' (5 U.S.C. 552(b)(4)), and (b)(8) of the Freedom of 
Information Act, which exempts from disclosure information related to 
examination, operating, or condition reports prepared by, on behalf of, 
or for the use of an agency responsible for the regulation or 
supervision of financial institutions (5 U.S.C. 552(b)(8)). If 
confidential treatment is requested by a respondent for other items in 
the FR Y-9C, the Board will review the request to determine if 
confidential treatment is appropriate.

    Board of Governors of the Federal Reserve System, April 24, 
2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018-09000 Filed 4-27-18; 8:45 am]
 BILLING CODE 6210-01-P