SUPPLEMENTARY INFORMATION:

On June 15, 1984, OMB delegated to the Board authority under the Paperwork Reduction Act (PRA) to approve and assign OMB control numbers to collections of information conducted or sponsored by the Board. Board-approved collections of information are incorporated into the official OMB inventory of currently approved collections of information. The OMB inventory, as well as copies of the PRA Submission, supporting statements (which contain more detailed information about the information collections and burden estimates than this notice), and approved collection of information instrument(s) are available at https://www.reginfo.gov/​public/​do/​PRAMain. These documents are also available on the Federal Reserve Board's public website at https://www.federalreserve.gov/​apps/​reportingforms/​home/​review or may be requested from the agency clearance officer, whose name appears above. On ( printed page 29486) the page displayed at the link above, you can find the supporting information by referencing the collection identifier, FR Y-14A/Q/M.

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

Collection title: Capital Assessments and Stress Testing Reports.

Collection identifier: FR Y-14A/Q/M.

OMB control number: 7100-0341.

General description of collection: The FR Y-14 reports collect stress test and capital plan data from the largest holding companies, which are those with $100 billion or more in total consolidated assets. The data collected through the FR Y-14 reports provide the Board with the information needed to help ensure that large holding companies have strong, firm‐wide risk measurement and management processes supporting their internal assessments of capital adequacy and that their capital resources are sufficient given their business focus, activities, and resulting risk exposures. Information gathered in this data collection is also used in the supervision and regulation of these financial institutions.

Frequency: Annually, quarterly, and monthly.

Respondents: These collections of information are applicable to top-tier holding companies with total consolidated assets of $100 billion or more.

Total estimated number of respondents: 35.

Total estimated change in burden: 12,989 hours.

Total estimated annual burden hours: 774,828.

Current actions: On June 21, 2024, the Board published an initial notice in the Federal Register (89 FR 52042) requesting public comment for 60 days on the extension, with revision, of the FR Y-14A/Q/M reports. The proposed revisions to the FR Y-14A/Q/M reports would have collected more granular information on lending to nondepository financial institutions (NDFIs), improved the timeliness and coverage of the Board's collections of counterparty credit risk data, removed data fields deemed no longer necessary, and made other minor revisions and instructional clarifications. The comment period for this notice expired on August 20, 2024.

Following the initial notice, the Board received six comment letters. Three comment letters were from financial industry groups, one comment letter was from a banking organization, and two comment letters were from organizations associated with small business investment companies (SBICs).

Following the comment period, Federal Reserve staff met with representatives from banking organizations, banking industry advocacy groups, and a law firm regarding the comment letters received on the initial notice. During the meeting, representatives noted their support for certain aspects of the proposed changes and also reiterated their concerns with certain elements of the proposal.

The Board has adopted the proposed revisions, except as discussed below.

Detailed Discussion of Public Comments

General

Implementation Dates

The Board proposed to implement revisions to the FR Y-14Q and FR Y-14M effective for the September 30, 2024, as-of date, and revisions to the FR Y-14A effective for the December 31, 2024, as-of date. Commenters expressed concern with the proposed timeline and requested that the Board revise the implementation dates to provide firms with sufficient time to make the required system changes, perform testing, and confirm reporting accuracy. For most proposed revisions, a commenter noted that implementation time of four quarters from the publication of the final notice would be adequate.

The Board recognizes the burden associated with regulatory reporting and the importance of providing firms sufficient time to update reporting systems and perform testing following the final notice. However, ensuring that data is received in a timely fashion is critical to conduct supervision and address emerging risks. Notably, several revisions noted as burdensome by commenters have not been adopted or have been otherwise modified to ease operational burden, as discussed below. The Board has adopted certain minor revisions or burden reducing revisions effective for the first reporting quarter following this notice, and the remaining revisions effective for the December 31, 2026, as-of date.

FR Y-14 Q&A System

To address relevant unaddressed questions on the FR Y-14, the Board encouraged the submission of comments regarding any aspects of the FR Y-14 instructions that may be unclear. Additionally, the Board noted that it intended to retire unanswered questions in the Q&A system that were submitted prior to the publication of the initial notice. One commenter requested further guidance as to the Board's intentions with FR Y-14 Q&As in general. The commenter pointed out that it will continue to be critical for firms to be able to submit questions to the Board regarding the FR Y-14 and receive timely responses. Additionally, another commenter suggested that the Board consider changes to its FR Y-14 Q&A process to improve responsiveness and that the Board consider providing factors for firms to prioritize responses so urgent questions receive prompt responses.

The Board received 89 outstanding questions related to FR Y-14 reporting. The Board has since provided responses to 76 of these questions. The Board will consider adopting additional clarifications related to these questions in future updates to the FR Y-14. Q&As #Y140001594, #Y140000960, and #Y140001592 have been returned to the firms for clarification, and the Board expects to address these questions once clarifications have been received. The remainder of the questions were withdrawn by the firm or were addressed outside of the FR Y-14 Q&A system due to the nature of the question.

Additionally, the FR Y-14 Q&A system is not the appropriate channel for questions that do not pertain to an interpretation of reporting requirements. Firms should work with their Reserve Bank Analyst for questions related to edit checks.

As firms' relevant previously unaddressed questions have been addressed and this notice provides additional instructional clarifications, the Board will retire all outstanding questions that were submitted prior to the initial notice. Unanswered questions submitted since the initial notice will remain active. The Board understands the importance of providing responses to questions on FR Y-14 reporting requirements and is committed to improving the timeliness of these responses. In the absence of a response, firms should report according to their best understanding of the instructions. At this time, no further process changes will be made to the FR Y-14 Q&A system and firms will continue to be able to submit questions on the FR Y-14 to the Federal Reserve. After submitting a question to the Q&A system, firms should notify the Federal Reserve via email ( info.StressTesting@frb.org) if a question is urgent or could impact an upcoming FR Y-14 submission. ( printed page 29487)

Historical Data

The Board proposed to modify the FR Y-14Q historical reporting requirement such that new reporters, or existing reporters that must begin filing a Retail schedule, would be required to provide PPNR and Retail historical reports for only the five years preceding the first quarter that the firms is subject to reporting. One commenter supported this revision and stated that five years of historical data is appropriately calibrated. Therefore, the Board has adopted this revision effective for the first reporting period following the publication of this notice.

Exploratory Market Shocks

The Board proposed to revise the FR Y-14 instructions to require firms to submit relevant data with respect to all market shocks that the Board may conduct in a given year, including exploratory shocks. One commenter noted that the proposed requirements were unclear and recommended that the Board align this collection with a 2024 supplemental data collection. Specifically, the commenter stated that firms should not be required to apply exploratory market shocks to FR Y-14A, Schedule A.1.a, line item 62 (“Total Trading and Counterparty Losses”) with respect to trading activity as this line item is dependent on FR Y-14Q, Schedule F (Trading), which falls outside the scope of the exploratory market shocks. Further, the commenter asked that the Board conduct no more than two exploratory market shocks per year given the operational burdens of providing the data and ensure that the as-of date for the exploratory market shock is the same as for the global market shock (GMS). Lastly, the commenter stated that the FR Y-14Q, Schedule L (Counterparty) data should not be due until April 30.

The Board is cognizant of the burden associated with exploratory market shocks and has determined that the proposed revision to the FR Y-14 related to exploratory market shocks is not needed at this time. Therefore, the Board has not adopted this revision.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Consistent with ASU 2022-02, the Board proposed to retire fields that captured troubled debt restructurings on FR Y-14Q, Schedules H.1 and H.2 and FR Y-14M, Schedules A and B, and replace them with fields to capture loan modifications to borrowers experiencing financial difficulty (LMBEFDs). A commenter noted that the FR Y-14 instructions for reporting LMBEFDs does not align with the FR Y-9C and asked that the Board align the definitions. The commenter also requested that the revisions related to LMBEFDs are effective for the December 31, 2024, as-of date, to align with the FR Y-9C.

For alignment between reports, the Board has revised the FR Y-14 fields related to LMBEFDs to direct firms to report consistent with the FR Y-9C glossary entry for LMBEFDs. The Board has adopted this revision for the first reporting period following the publication of this notice.

FR Y-14 Materiality Threshold Clarification

The Board has received questions as to the materiality threshold calculation for reporting certain FR Y-14Q and FR Y-14M schedules as respondents have stated there is ambiguity as to whether the four-quarter average applies to both asset balances and asset balances as a percent of Tier 1 capital. The Board clarifies that the FR Y-14Q and FR Y-14M materiality thresholds are determined by the four-quarter average of (1) asset balances or (2) the ratio of asset balances to Tier 1 capital. The four-quarter average is calculated using the asset balances or ratio of asset balances to Tier 1 capital as of the end of each of the four most recent quarters. If either threshold is met, the firm would be required to report the applicable schedule in the following quarter for the FR Y-14Q. For the FR Y-14M, the firm would be required to report the applicable schedule starting with the last month of the following quarter.

For example, for a firm that is subject to Category I standards, if its asset balances exceed $5 billion based on a four-quarter average, or if the ratio of its asset balances to Tier 1 capital exceeds 5 percent based on a four-quarter average, as of June 30, then the firm must file the applicable schedule for the September reporting date. Firms are responsible for ensuring that reporting expectations are being met. For existing FR Y-14 filers, the Board does not contact firms when it must begin reporting a new schedule.

To address questions raised by firms approaching materiality thresholds, the Board has clarified the calculation in the FR Y-14Q and FR Y-14M instructions.

Other Revisions

The Board proposed to update the instruction for FR Y-14A, Schedule A.7.a, item 36 (“Provisions for Unfunded Off-Balance Sheet Credit Exposures”) to reference FR Y-9C, Schedule HI-B, part II, item M7 (“Provisions for credit losses on off-balance sheet credit exposures”). A commenter noted that there is a difference in presentation between the FR Y-14A, FR Y-14Q, and FR Y-9C as to the reporting of provisions for unfunded off-balance sheet credit exposures, which it recommended the Board address. The commenter also asked that the Board update the FR Y-9C reference included in FR Y-14Q, Schedule G.1, item 36 (“Provisions for Unfunded Off-Balance Sheet Credit Exposures”). To ensure consistent reporting, the Board has moved the reporting of the provisions for unfunded off-balance sheet credit exposures to Schedule A.1.a (Income Statement) to be a component of item 91 (“Total provisions during the quarter”) on the FR Y-14A. Additionally, the Board has updated item 36 of Schedule G.1 to reference FR Y-9C, Schedule HI-B, part II, item M7. The Board has adopted this revision effective for the December 31, 2026, as-of date.

The Board did not propose changes related to numeric formatting across the FR Y-14 reports. However, a commenter noted that fields related to loss given defaults and zip codes have different numeric formatting across schedules. The Board recognizes this inconsistency and will take this feedback under consideration when determining any future revisions.

Effective for the March 31, 2024, as-of date, the Board revised the FR Y-14 reports to reflect full CECL implementation. Due to the timing of the initial notice, these changes were not reflected in the proposed forms and instructions. A commenter noted this and requested that they be removed. The Board confirms that these changes will remain reflected on the official FR Y-14 forms and instructions moving forward.

Counterparty

Submission of Fourth Quarter Data

The Board proposed to require an unstressed Schedule L submission as of the last calendar date of the fourth quarter, in addition to the four submissions currently required. A commenter asked that this revision not be implemented given the associated burden and because there is no meaningful change in the data as of quarter-end as compared to the GMS as-of date submission.

The Board acknowledges the operational burden concerns raised by the commenter and limited difference in submissions between the GMS as-of date and quarter-end. Therefore, the ( printed page 29488) Board has not adopted the proposed revision.

Reporting of Counterparties Under the Firm-Generated Scenario

The Board proposed to require the reporting of a firm's top 25 counterparties and related exposures under the firm-generated scenario on FR Y-14Q, Schedule L.5 (Derivatives and Securities Financing Transactions Profile). A commenter stated that clarification was needed as to the population of counterparties; specifically, the commenter asked if a counterparty that is already captured by one of the two existing ranking methodologies must also be included under the new ranking methodology. The Board confirms that a counterparty is only required to be reported under one Schedule L.5 ranking methodology. The Board has clarified the instructions to reduce ambiguity and has adopted this revision effective for the December 31, 2026, as-of date.

Assumptions Associated With the Reporting of Credit Valuation Adjustment (CVA) Sensitivities

The Board proposed to require the reporting of FR Y-14Q, Schedule L.4 (Aggregate and Top 10 CVA Sensitivities by Risk Factor) under certain Board-provided assumptions (margin period of risk of 10 business days, keeping CSA thresholds flat, no gains from netting, and no credit downgrade triggers). A commenter requested that the Board clarify the definitions of “no gains from netting” and “keeping CSA thresholds flat” and provide an illustrative example. Additionally, the commenter asked that the Board include these details in a separate proposal for an appropriate opportunity for firms to provide feedback, given the potential impact to stress testing due to these changes.

The Board recognizes the ambiguity of the proposed assumptions “no gains from netting” and “keeping CSA thresholds flat,” as they do not currently exist elsewhere in the Schedule L instructions. However, “margin period of risk of 10 days” and “no credit downgrade triggers” are currently used in reporting certain FR Y-14Q, Schedule L.2 (Expected Exposure Profile by Counterparty) fields. The Board has determined that implementing just these two assumptions will achieve the intended outcome of consistent reporting and not require additional clarification. Lastly, the Board confirms that there are no stress testing methodology changes associated with this revision. By implementing consistent assumptions, the Board will receive comparable and higher-quality data from all firms.

The Board has revised the instructions to specify that the CVA sensitivities on Schedule L.4 are to be reported under the assumptions “margin period of risk of 10 days” and “no gains from netting.” The Board has adopted this revision effective for the December 31, 2026, as-of date.

Netting When Calculating Net CE

The Board proposed to clarify the instructions to describe how a firm can net exposures when calculating net current exposure for SFTs. The initial notice stated that this would address questions and issues raised in FR Y-14 Q&As #Y140001627 and #Y140001614. A commenter pointed out that Q&A #Y140001627 has not been published and therefore commenters cannot verify if the proposed revision adequately addresses the question. In September 2024, the Board published the content of #Y140001627 in FR Y-14 Q&A #Y140001698.

Other Revisions

The Board proposed to clarify that firms should use the International Swaps and Derivatives Association, Inc., publication of the 2013 Standard Credit Support Annex for the basis of classifying derivatives as SCSA and use Old-CSA for agreements made prior to this publication. A commenter stated that the proposed instruction language was ambiguous and that clarification was required as to the relevant date to be used for reporting. To address this possible ambiguity, the Board has clarified the instructions to reflect that firms should use the date when the contractual terms become binding. The Board has adopted this revision effective for the December 31, 2026, as-of date.

The Schedule L form that was included in the initial proposal contained two fields related to the variable payoff of credit default swaps (CDS). A commenter pointed out that the Federal Register notice did not discuss these fields and that the proposed instructions did not provide instructions for how to report them. Therefore, the commenter requested clarifications and detailed instructions. The fields were erroneously included in the Schedule L form and the Board has removed them from the final version.

A commenter reiterated concerns over the reporting of client cleared derivatives exposures on Schedules L.1-L.4 and requested that they remain out of scope. Additionally, the commenter stated that FR Y-14 Q&A #Y14001503 has created conflicting guidance regarding the treatment of client cleared derivatives. The initial notice did not contemplate any revisions related to the reporting of client cleared derivatives and the Board does not believe #Y14001503 creates conflicting guidance, as it restates the FR Y-14Q instruction's distinction for reporting the two types of client-cleared derivative exposures, back-to-back derivatives (considered a direct exposure) and guaranteed derivatives (an indirect exposure). Only direct exposures for which a firm computes CVA for its public financial statements should be reported in Schedule L.1-L.4 regular/unstressed submissions. Direct exposures should be reported in Schedule L.1-L.4 for CCAR/stressed submissions irrespective of the firm's accounting practice for financial reporting. Firms should continue to report these exposures in accordance with the FR Y-14 instructions. The Board will consider if additional clarifications are required in the future and would propose any changes in a Federal Register notice.

Wholesale

Reporting Treatment of Nondepository Financial Institutions

The Board proposed to require the reporting of fields 52 through 82 on FR Y-14Q, Schedule H.1 (Corporate), the “Obligor Financial Data Section,” for NDFIs. The Board received several comment letters on this proposed revision. One commenter noted that the Obligor Financial Data section may be overly broad and that there are obligors for which financial data is not used in the underwriting process or collected from NDFIs on an ongoing basis. The commenter suggested that the Board add clarifying language to Schedule H.1 such that financial data is not required in situations in which it is not used in underwriting and credit risk monitoring. Similarly, the commenter requested that the Board exclude special purpose entities, special purpose vehicles, and fronting risk facilities from obligor financial data reporting as it would be burdensome to provide and of minimal supervisory benefit. Another commenter suggested that the obligor financial data for fronting risk facilities be based on the primary credit facility obligor to better reflect underwriting practices and ensure consistent reporting.

One commenter stated that the FR Y-14Q collection of NDFI financial data should only require firms to report financial data that is collected during the underwriting and credit risk management process to reflect existing market practices. Otherwise, the ( printed page 29489) commenter recommended that long-term debt and short-term debt only be required if collected by firms on an ongoing basis, given the sensitive information these fields may reveal about an NDFI's activities, and that minimum thresholds be established for reporting certain financial data fields that may not be material to all NDFIs.

Another commenter expressed strong support for the proposed revisions related to the collection of NDFI data and, in the spirit of financial stability, that the Board make the data publicly available and maintain regulatory awareness of possible risks attributable to NDFIs at banks with total assets below $100 billion.

As the Obligor Financial Data section was constructed to cover a range of obligors and financial data, the Board understands that every field of the financial data section may not be pertinent to underwriting and credit risk monitoring for all NDFI obligors. The Board notes that Section C (“Technical Details”) of the FR Y-14Q General Instructions states, “If information is not available or not applicable and no such options are offered, the field should be left blank.” As such, the Board acknowledges certain fields may not be populated but expects firms to report as complete data as possible and would engage firms through the supervisory process if pertinent data is omitted. This language also obviates the need for materiality thresholds, as suggested by another commenter. Recognizing the commenter's statements that the items in the financial data section is generally not applicable for loans to special purpose entities, special purpose vehicles, and fronting credit facilities, the Board has modified the instructions to exclude these entities from obligor financial data reporting. Lastly, the Board reiterates that the FR Y-14 reports are confidential supervisory information, and the Board does not expect to disclose information reported on the FR Y-14Q regarding an individual NDFI's activities, given the sensitive nature of this information. The Board has adopted this revision effective for the December 31, 2026, as-of date.

To balance regulatory burden and risk coverage, the FR Y-14 respondent panel is firms with $100 billion or more in total consolidated assets. However, the Board can monitor smaller firms' NDFI exposures through the supervisory process and other regulatory reports, such as the FR Y-9C. If additional data is deemed necessary, the Board may request it from the relevant firms.

Additionally, the Board proposed to add a “NDFI Entity Type” field to Schedule H.1 in which firms would have had multiple options to specify the NDFI type to which the facility was extended. To ease operational burden, several commenters requested that the Board align the proposed NDFI categories on the FR Y-14 with those proposed for the Call Report.^[1] Further, for consistency, a commenter asked that the Board propose corresponding revisions to the FR Y-9C. If the FR Y-14 includes NDFI categories beyond the proposed Call Report categories, a commenter requested that the Board provide definitions and guidance for the FR Y-14-specific categories. Lastly, commenters asked that the Board align the implementation date across reports for related NDFI revisions.

The Board understands the value in aligning regulatory reports and aims to do so whenever possible. To ensure that the FR Y-14 aligns with the FR Y-9C, the Board proposed revisions that would add the five proposed FR Y-9C NDFI categories as options to Schedule, H.1, item 26 (“Line Reported on FR Y-9C”).^[2] However, these five categories are not sufficiently granular for stress testing purposes and to ensure that supervisors sufficiently understand the risks NDFIs may pose to the largest banks. The Board aims to provide clear reporting guidance and has revised the Schedule H.1 instructions to provide firms detailed information on classifying the FR Y-14-specific NDFI types and on the proposed “NDFI Entity Type” field to address issues raised by commenters. The Board has adopted this revision effective for the December 31, 2026, as-of date.

Reporting of Financial Sponsors

The Board proposed to add three fields to Schedule H.1 to capture whether an obligor is controlled by a financial sponsor, and, if so, that financial sponsor's name and legal entity identifier. The Board received several comments on this revision stating that the proposed fields are overly broad and suggesting clarifications to improve the consistency of reporting. First, commenters stated that the proposed instructions are unclear as to whether entities can be financial sponsors, as opposed to individuals. Second, commenters asserted that the definition of financial sponsor is overly broad and suggested that the Board adopt a minimum ownership percentage or narrow the definition to reflect only financial sponsors that have legal authority over the policies of the obligor. Additionally, a commenter stated that the Board should clarify how to report an obligor that has more than one financial sponsor and whether financial sponsor reporting is required for all obligors with a financial sponsor or only for NDFI obligors. Lastly, a commenter asked whether there are masking considerations for individual financial sponsors as currently exist elsewhere on the FR Y-14.

The Board confirms that entities as well as individuals can be considered financial sponsors, and has revised the instructions for clarity. Relatedly, the Board has revised the instructions to ensure that information on individuals is masked, consistent with practice in other portions of the FR Y-14Q. The Board recognizes the ambiguity of the proposed financial sponsor fields and has implemented a 25 percent minimum ownership threshold, consistent with the Shared National Credit report, for the purposes of reporting a financial sponsor to address commenters' concerns. The Board modified the instructions to reflect that financial sponsor reporting applies to all corporate obligors, not just NDFIs, and that firms should report the financial sponsor with the greatest ownership percentage in the case of multiple sponsors. Finally, the Board modified the instructions to clarify that firms should provide the financial sponsor as of the reporting date. With these adjustments, the Board has adopted this revision effective for the December 31, 2026, as-of date.

Additional Options for the Reporting of Security Type

The Board proposed to add twelve options to Schedule H.1, item 36 (“Security Type”) covering an array of known collateral types. Commenters stated that the Board should provide definitions for these new options or introduce alternative granularity. The Board understands that providing additional guidance can be valuable where ambiguity may exist. As with the existing item 36 options, the Board believes that the proposed options are clear as to their applicability and instructs firms to report this field to their best understanding. If ambiguity persists, firms should submit questions with specific details to the FR Y-14 Q&A system. The Board has adopted this revision effective for the December 31, 2026, as-of date.

Reporting of Fee Information

The Board proposed to add five fields to each FR Y-14Q, Schedule H.1 and Schedule H.2 (Commercial Real Estate) to capture facility fee structure. A ( printed page 29490) commenter requested that this revision not be implemented as fee structures can vary greatly, would present substantial burden to report consistently, and provide minimal supervisory benefit. Another commenter requested clarification as to whether amendment and renewal fees should be considered closing fees, and whether this determination should be tied to the concept of a “major modification” as currently defined by the “Origination Date” fields.

In light of the comments, the Board has not adopted the proposed items related to fees collected (as opposed to assessed). However, the Board believes there to be a strong supervisory benefit to collecting data on assessed closing fees, facility fees, and unused commitment fees as these can be an important element of a loan's pricing and economics. If fees are material, the loan's interest rate provides an incomplete view of the loan's compensation structure; therefore, fee information is critical for supervisors to comprehensively understand a loan's riskiness. In addition, information on loan fee structures may help the board improve the accuracy of its projection of PPNR on loans. As suggested by a commenter, the Board has clarified that the reporting of renewal and amendment fees as closing fees should be based on major modifications. The Board has adopted this revision effective for the December 31, 2026, as-of date.

Reporting of Collateral Market Value

The Board proposed to modify the instructions of Schedule H.1, item 93 (“Collateral Market Value”) to require the reporting of collateral valuations for all facilities with commitments based on collateral. A commenter stated that the proposed revision did not include sufficient information regarding required reporting and that further guidance should be provided as to the scope of reporting and how to report for facilities that do not require periodic valuations of collateral. The Board has clarified the instructions such that the “Collateral Market Value” field is required for all facilities that are not reported as “Unsecured” in line item 36 (“Security Type”). Additionally, the Board has added guidance to instruct firms to report the value assessed at origination for facilities that do not undergo ongoing evaluations. The Board has adopted this revision effective for the December 31, 2026, as-of date.

Loan Covenant Violation Information

The Board proposed to add an item to Schedule H.1 to capture if a loan covenant exists, whether the covenant has been violated, and, if so, whether the agreement has been amended. A commenter asked that the reporting of covenant information not be adopted as it may not be reflected in firm financial systems and that ambiguities exist regarding the definition of loan covenant violations, particularly for non-financial covenants, which could minimize the data's benefits. To ensure consistent reporting, another commenter requested that definitions be provided for each allowable value.

Collecting data on covenants is important as covenant violations can serve as an early warning signal for loan distress and credit default. By conferring contractual rights to creditors, covenant violations function similarly to payment defaults but are more frequent and occur well before actual payment default. Therefore, this information is valuable for credit risk monitoring and modeling. However, the Board recognizes the commenter's points on the ambiguity of non-financial covenants and associated violations, and has modified the field from what was proposed to exclude non-financial covenants. The Board has adopted the proposed revision with this modification, and has added additional guidance on financial covenants and violations to the instructions to ensure consistent reporting across firms.

Loan Amortization Reporting

The Board proposed to collect data on loan amortization in Schedule H.1. Citing the burden and minimal benefit of amortization data for corporate loans, a commenter requested that the Board not adopt this revision. Recognizing the burden and amortization structure of corporate loans, the Board has determined that this proposed item is not necessary and has not adopted this revision.

Units of Size for Property Size Reporting

The Board proposed to clarify that square feet should be used when reporting Schedule H.2, item 39 (“Property Size”) for healthcare properties. A commenter stated that number of beds is the industry standard for measuring healthcare properties and suggested that this be reflected on the FR Y-14. To align with industry standards, the Board has revised the instructions to require “Property Size” to be reported in number of beds for healthcare properties. The Board has adopted this revision effective for the December 31, 2026, as-of date.

Unused Commitments

The Board proposed to update the Schedule H language to clarify which commitments must be reported. A commenter stated that commitments where the lender is not under any legal obligation to extend credit or purchase assets should be out of scope for Schedule H. The proposed revision aimed to align the FR Y-14 language regarding unused commitments with that of the FR Y-9C, and did not change the scope of the reported commitments. The Board will consider if changes are necessary to either the FR Y-14 and FR Y-9C and would propose such changes in a Federal Register notice. Firms should report on Schedule H any unused commitment that the firm reports in FR Y-9C, Schedule HC-L and that would be reported in one of the applicable FR Y-9C loan categories if such loan were drawn. The Board has adopted this revision for the December 31, 2026, as-of date.

Other Comments

The Board did not propose any changes to the population of loans that should be reported on Schedule H.1. However, a commenter requested that the Board exclude non-purpose margin loans to be consistent with proposed revisions to the Call Report.^[3] The Board notes that it proposed and finalized corresponding revisions to the FR Y-9C that would require non-purpose loans secured predominantly by securities with readily determinable fair value to be reported in FR Y-9C, Schedule HC-C, item 9.b.(1) (“Loans for purchasing or carrying securities”).^[4] Therefore, these loans are not be reported in Schedule H.1, as item 9.b.(1) is not a reportable category.

The Board did not propose any Schedule H revisions related to CDS hedging. However, a commenter suggested that the Board add items to Schedule H.1 and Schedule H.2 to indicate if a loan is hedged via a CDS derivative and the percentage of the loan that is hedged. As indicated by recent supplemental data collections on synthetic securitizations, the Board is committed to exploring the impact of risk-mitigating activities and may as a result propose changes to the FR Y-14 in the future. At this time, the Board is not adopting any revisions to Schedule H that would capture CDS hedge positions. ( printed page 29491)

Retail

Alignment Between Loan-Level and Portfolio-Level First Lien Schedules

The Board proposed to add the fields “Total Debt from Loans Involuntarily Terminated,” “Total Net Recoveries,” and “Total Credit Enhancements Received” to FR Y-14M, Schedule A.2 (Domestic First Lien Closed-end 1-4 Family Residential Portfolio Level Table). Commenters noted that the proposed fields instruct firms to include real estate owned (REO) loans, but the general instructions for Schedule A instruct firms to exclude REO loans from Schedule A.2, which the commenters suggested the Board resolve. A commenter also asked that the Board address the discrepancy between Schedule A.2 and Schedule A.1 (Domestic First Lien Closed-end 1-4 Family Residential Loan Level Table) as to the applicable reporting period for the new fields.

The Board recognizes that, given the exclusion of REO balances from Schedule A.2, most liquidated loans would not be captured by the proposed additional fields, limiting their utility. Therefore, in light of the burden associated with reporting additional fields, the Board has not adopted this proposed revision.

Owner-Occupied Nonfarm Nonresidential Loans

The Board proposed to specify that scored or delinquency managed owner-occupied nonfarm nonresidential (NFNR) loans, as reported in FR Y-9C, Schedule HC-C, line item 1.3.(1), should be reported on FR Y-14Q, Schedule A.9 (U.S. Small Business). The Board also proposed to specify that scored owner-occupied NFNR loans be reported as small business loans (line item 2.b) on FR Y-14Q, Schedule M.1 (Quarter-end Balances) and to add a line item to FR Y-14Q, Schedule M.2 (FR Y-9C Reconciliation) for scored owner-occupied NFNR loans. For consistency, the Board proposed to enable the reporting of FR Y-14Q, Schedule K, Column F (Scored Loans) for line item 7.d.1 (“Domestic Owner Occupied NFNR”) and clarify that Column F only applies to owner-occupied NFNR loans. A commenter noted that the proposed revisions appear to be duplicative and burdensome, while another commenter asked that the Board clarify whether both scored and delinquency managed loans are to be included in Schedule A.9, as the proposed instructions only mentioned delinquency managed loans.

The Board confirms that both scored and delinquency managed owner-occupied NFNR loans should be reported on Schedule A.9 and has revised the instructions to add a reference to scored loans. Consistent with the nature of Schedule K to address data gaps, the Board confirms that Column F is only required if the firm does not already report Schedule A.9; therefore, this revision does not introduce duplicative reporting requirements. The Board has revised the Schedule K instructions to clarify this expectation. If a firm meets the Schedule A.9 reporting threshold, it should report its owner-occupied NFNR loans on Schedule A.9 in the same manner as other small business loans. If the firm does not meet the Schedule A.9 reporting threshold, it must report its owner-occupied NFNR balances on Schedule K, Column F.

The Board agrees that opening line item 7.d.1 is duplicative, as the same population of loans is collected by the “No loan category specific line.” To maintain current reporting processes, the Board has removed this duplication such that firms should continue to report these loans in the “No loan category specific” row, as applicable. The Board has adopted this revision effective for the December 31, 2026, as-of date.

Reporting of International and Domestic Credit Card Loans

The Board proposed to define all credit card loans by office location, not borrower domicile, and to revise the FR Y-14Q retail schedule instructions to clarify that only loans held in foreign offices should be reported on the international sub-schedules. To avoid confusion, the Board also proposed to add “United States” to Region 1 of the “Geography” field for all international retail sub-schedules. Given these revisions, a commenter suggested that a corresponding definition be implemented on the domestic retail sub-schedules and requested clarification as to how to report international domiciles on FR Y-14Q, Schedule A.2 (U.S. Auto Loan). Similarly, a commenter noted that the FR Y-14M instructions should be revised to address loans with respect to property located outside the United States.

To address the commenter's concerns and accurately capture loans held by domestic offices to international domiciles, the Board has added an “Other Regions” option to the “Geography” field of the FR Y-14Q domestic retail sub-schedules. The Board has also clarified that loans should be classified by office location for purposes of reporting the FR Y-14M and provided guidance as to how to report international domiciles in the geography fields. The Board has adopted this revision effective for the December 31, 2026, as-of date.

Upon implementation of this revision, FR Y-14 Q&As #Y140000700, #Y140001258, #Y140001176, and #Y140000994 are no longer relevant and will be updated accordingly.

Revenue and Loss Sharing Agreements

The Board proposed to implement the collection of private credit card revenue- and loss-sharing agreements (RLSAs) to FR Y-14M, Schedule D (Domestic Credit Card). A commenter requested that the Board clarify if item 70 (“Loss Sharing”) on Schedule D.1 only requires the reporting of accounts that are part of loss-sharing agreements and that item 70 captures the type of loss sharing agreement to which the account is subject. The commenter also asked that the Board clarify whether revenue-sharing agreements should be reported in item 45 (“All Other Noninterest Income”) on Schedule D.2 and whether dollar amounts reported in item 48 (“Other Loss Share Credits”) should include credit losses associated with both loss-sharing agreements and profit-sharing agreements for which losses are included as part of the calculated profit. The commenter recommended a new line item be added to Schedule D.2 for purposes of reporting the dollar amount paid or received with respect to PPNR associated with revenue- or profit-sharing agreements. Additionally, the commenter asked that the Board make Schedule D.1 and D.2 consistent with respect to reporting RLSA credits and asked whether amounts should be gross, not net, of sharing credits or payments received. Another commenter asked that the Board clarify if revenue-sharing agreements are also to be reported, as the proposed instructions only mention loss-sharing agreements.

The Board has subsequently proposed additional revisions to better capture credit card revenue and loss sharing agreements for use in the supervisory stress test.^[5] Therefore, the Board is not adopting this revision.

Other Comments

The Board proposed to revise the FR Y-14 to remove and replace all references to LIBOR. Commenters noted that certain fields impacted by this change are origination fields that are not expected to change, and therefore asked if firms can continue to report LIBOR options for historical loans that originated with a LIBOR rate. The Board has modified the instructions to retain ( printed page 29492) the LIBOR-related options for the “ARM Index” fields on FR Y-14M, Schedules A.1 and B.1. The Board confirms that firms should continue to report LIBOR-related options for loans that were originated with LIBOR rates. The Board has adopted this revision effective for the December 31, 2026, as-of date.

The Board proposed to clarify that the “Workout Type” fields on FR Y-14M, Schedule A.1 and B.2 should be left blank if the loan has never been in loss mitigation. A commenter asked that the Board clarify the difference between reporting “0” and “Null” for these fields. The Board has clarified the instructions such that “0” is to be used in the month following completion of a workout plan and that “Null” is to be used in following months or when a loan has never been subject to loss mitigation. The Board has adopted this revision effective for the December 31, 2026, as-of date.

The Board did not propose to retire fields from FR Y-14M, Schedule C (Address Matching), but a commenter requested that certain fields related to mailing information be retired. The Board has proposed to retire these fields in a subsequent proposal.^[6]

The Board did not propose changes to FR Y-14M, Schedule B.1, item 95 (“Unpaid Principal Balance (Net)), but a commenter pointed out that the current instructions do not reflect a FR Y-14 Q&A. Specifically, the commenter noted the Q&A indicated the Board would remove the language stating that the unpaid principal balance should equal the book value on regulatory filings. The Board has proposed to remove this language from item 95 in a subsequent proposal.^[7]

Balances

The Board proposed to create a new FR Y-14Q, Schedule M (Balances) sub-schedule to collect data on loans and leases covered by shared-loss agreements (SLAs) with the FDIC. A commenter initially asked that this sub-schedule not be adopted given the time required for implementation. However, after further consideration, the commenter clarified that they do not object to the adoption of this sub-schedule. The commenter also stated that the Board should provide guidance as to how to report unfunded commitments covered by SLAs with the FDIC.

To expand the scope of SLA data, the Board has modified the instructions and template to collect data on the committed balance (funded plus unfunded balance) of loans covered by SLAs with the FDIC. The Board also confirms that the sub-schedule is only required from firms that have SLAs with the FDIC as of the reporting date, as indicated in the instructions. The Board has adopted this revision effective for the December 31, 2026, as-of date.

Trading

Small Business Investment Companies

The Board proposed to add “SBIC Interests” to FR Y-14Q, Schedule F (Trading) as an industry group to capture funded and unfunded equity interests in SBICs. Commenters generally expressed support for capturing SBIC exposures separate from other forms of private equity; however, commenters also suggested that the Board broaden the scope of what is considered an “SBIC Interest” for Schedule F reporting purposes. Specifically, one commenter argued that all SBIC interests other than “Participating Security SBICs” be reported in the SBIC industry group, as opposed to only “Standard Debenture” SBICs. Another commenter stated that the proposed revision should incorporate non-leveraged SBICs in addition to “Standard Debenture” SBICs. Additionally, a commenter asked that the Board consider a further adjustment to the SBIC loss rate in the supervisory stress test, and, to do so, collect the percentage of underlying SBIC investments that are equity and debt.^[8]

Based on the feedback and data provided by the commenters, the Board has determined that it is appropriate to collect data on all SBIC types, other than “Participating Security SBICs.” The Board has added an “SBIC Interests—Other” industry group to Schedule F.24 to capture exposures to SBICs other than Standard Debenture SBICs and Participating Security SBICs. The proposed “SBIC Interests” industry group has been renamed “SBIC Interests—Standard Debenture.” As in all areas of the stress test, the Board will continually monitor and analyze the data to determine if the SBIC loss rate is appropriately calibrated in the supervisory stress test. If supplementary data is required in the future, the Board may request it from firms, including the debt-to-equity split of the fund's underlying assets. The Board has adopted this revision effective for the December 31, 2026, as-of date.

Other Comments

The Board did not propose any changes to the reporting of non-fair value private equity investments or seed capital invested in mutual funds and exchange traded funds (ETFs). However, a commenter stated that the Board should exclude non-fair value private equity investments from FR Y-14Q, Schedule F.24 (Private Equity) as the macroeconomic scenario is more appropriate for estimating the stressed losses of these exposures. Similarly, the commenter asked that seed capital invested in mutual funds and exchange traded funds be excluded from Schedule F.24, as these funds generally invest in liquid marketable securities and therefore should not be treated as private equity when estimating stressed loss.

As discussed in the 2025 Supervisory Stress Test Methodology document, private equity exposures are stressed using the severely adverse macroeconomic scenario. If the Board determines that additional information is needed to conduct the supervisory stress test, it may request supplemental data from firms.

The Board will research and monitor the risks posed by seed capital investments in mutual funds and ETFs and consider the value of any reporting or methodology changes.

Capital

Incremental Submissions

The Board proposed to clarify that a FR Y-14A, Schedule C (Regulatory Capital Instruments) “Incremental” submission is required if a firm makes a distribution such that the dollar amount exceeds the firm's final planned capital distribution, as measured on an aggregate basis beginning in the fourth quarter of the planning horizon through the quarter at issue, even if that change is not reflected on Schedule C. A commenter suggested that the Board clarify the scope of payments to be reported and the process envisioned for Incremental submissions. The commenter also noted that tracking certain interest expenses or other payments that are immaterial and establishing a process for reporting may present a burden to firms.

Per the Schedule C instructions, an Incremental submission is required at the time the firm seeks approval for additional capital distributions pursuant to 12 CFR 225.8(j) or within 15 days after making any capital distribution pursuant to that section, or a capital distribution in excess of the firm's final planned capital distribution. Consistent with FR Y-14 Q&A #Y140001459, the ( printed page 29493) proposed revision sought to clarify that an Incremental submission is required even if the distribution that exceeds the planned amount is not captured by Schedule C. This means that, in certain instances, an Incremental submission may be unchanged when compared to the “Original” or “Adjusted” Schedule C submission. The Board does not intend to collect data on these distributions outside of Schedule C. The Board has adopted this revision effective for the December 31, 2026, as-of date.

Securities

The Board proposed to revise FR Y-14Q, Schedule B.2, item 15 (ASU 2017-12 ASU Hedge Designations) to reflect the updated portfolio layer method (PLM) of hedge accounting. Additionally, the Board proposed to retire Schedule B.2, item 11 (Hedged Cash Flow). A commenter stated that FR Y-14Q, Schedule B (Securities) does not comprehensively capture PLM hedges and suggested that the Board introduce a new Schedule B sub-schedule to collect this information. As mentioned in FR Y-14 Q&A #Y140001696, the current data collection used to support the securities modeling was designed to capture more traditional hedges and does not consistently and comprehensively capture PLMs. The Board has since proposed revisions to Schedule B that would more comprehensively capture data on hedges, including PLMs.^[9] Therefore, the Board has not adopted the proposed revisions to items 11 and 15.

91 FR 29485