Annual Stress Test PRA Notice

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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices

Titles and Form Number: EIB 92–41
Application for Financial Institution
Short-Term, Single-Buyer Insurance.
OMB Number: 3048–0019.
Type of Review: Regular.
Need and Use: The information
requested enables the applicant to
provide Ex-Im Bank with the
information necessary to obtain
legislatively required assurance of
repayment and fulfills other statutory
requirements.
Annual Number of Respondents: 300.
Estimated Time per Respondent: 1.5
hours.
Government Annual Burden Hours:
450.
Frequency of Reporting or Use:
Annually.
Government Review Time: 6 hours.
Total Hours: 1,800.
Cost to the Government: $74,880.
Sharon A. Whitt,
Agency Clearance Officer.
[FR Doc. 2012–21484 Filed 8–29–12; 8:45 am]
BILLING CODE 6690–01–P

FEDERAL COMMUNICATIONS
COMMISSION
Information Collection(s) Being
Submitted for Review and Approval to
the Office of Management and Budget
(OMB)
Federal Communications
Commission.
ACTION: Notice; request for comments.
AGENCY:

As part of its continuing effort
to reduce paperwork burden and as
required by the Paperwork Reduction
Act (PRA) of 1995 (44 U.S.C. 3502–
3520), the Federal Communications
Commission invites the general public
and other Federal agencies to take this
opportunity to comment on the
following information collection(s).
Comments are requested concerning:
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
the accuracy of the Commission’s
burden estimates; ways to enhance the
quality, utility, and clarity of the
information collected; ways to minimize
the burden of the collection of
information on the respondents,
including the use of automated
collection techniques or other forms of
information technology; and ways to
further reduce the information
collection burden on small business
concerns with fewer than 25 employees.
The FCC may not conduct or sponsor
a collection of information unless it

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SUMMARY:

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displays a currently valid OMB control
number. No person shall be subject to
any penalty for failing to comply with
a collection of information subject to the
Paperwork Reduction Act (PRA) that
does not display a valid OMB control
number.
Written Paperwork Reduction
Act (PRA) comments should be
submitted on or before October 1, 2012.
If you anticipate that you will be
submitting PRA comments, but find it
difficult to do so within the period of
time allowed by this notice, you should
advise the FCC contact listed below as
soon as possible.
ADDRESSES: Submit your PRA comments
to Nicholas A. Fraser, Office of
Management and Budget (OMB), via fax
at 202–395–5167 or via Internet at
[email protected] and
to Judith B. Herman, Federal
Communications Commission, via the
Internet at [email protected]. To
submit your PRA comments by email
send them to: [email protected].
FOR FURTHER INFORMATION CONTACT:
Judith B. Herman, Office of Managing
Director, FCC, at 202–418–0214.
DATES:

SUPPLEMENTARY INFORMATION:

OMB Control Number: 3060–00819.
Title: Lifeline and Link Up Reform
and Modernization, Advancing
Broadband Availability Through Digital
literacy Training.
Form Numbers: FCC Forms 497, 550
and 555.
Type of Review: Revision of a
currently approved collection.
Respondents: Individuals or
households and business or other forprofit.
Number of Respondents: 16,100,940
respondents; 41,828,019 responses.
Estimated Time per Response:
.5782166 hours.
Frequency of Response: On occasion,
quarterly, biennially, one time, monthly
and annual reporting requirements,
third party disclosure requirements and
recordkeeping requirements.
Obligation to Respond: Required to
obtain or retain benefits. Statutory
authority for this information collection
is contained in 47 U.S.C. sections 1, 4(i),
201–205, 214, 254 and 403 of the
Communications Act of 1934, as
amended.
Total Annual Burden: 24,185,658
hours.
Total Annual Cost: N/A.
Privacy Impact Assessment: Yes.
Nature and Extent of Confidentiality:
The Commission is not requesting that
respondents submit confidential
information to the Commission. If the
Commission requests information that

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the respondents believe is confidential,
respondents may request confidential
treatment of such information under 47
CFR 0.459 of the Commission’s rules.
We note that the Commission’s sponsor,
the Universal Service Administration
Company (USAC) must preserve the
confidentiality of all data obtain from
respondents and contributors to the
universal service support program
mechanism, must not use the data
except for the purposes of administering
the universal service support program
and must not disclose data in companyspecific form unless directed to do so by
the Commission.
Needs and Uses: The Commission
will submit this collection to the OMB
for approval of a revision of this
information collection.
Eligible Telecommunications Carriers
(ETCs) are permitted to receive
universal service support
reimbursement for offering certain
services to qualifying low-income
customers. On February 6, 2012, the
Commission released a Report and
Order and Further Notice of Proposed
Rulemaking, Lifeline and Link Up
Reform and Modernization, FederalState Joint Board on Universal Service,
FCC 12–11, intended to take immediate
action to address potential waste, fraud
and abuse in the universal service low
income program. For specific details of
the proposed information collection
requirements and other requirements
adopted see 77 FR 29241.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2012–21449 Filed 8–29–12; 8:45 am]
BILLING CODE 6712–01–P

FEDERAL DEPOSIT INSURANCE
CORPORATION
RIN 3064–AD91

Agency Information Collection
Activities: Proposed Information
Collection; Comment Request
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice and request for comment.
AGENCY:

The FDIC, as part of its
continuing effort to reduce paperwork
and respondent burden, invites the
general public and other Federal
agencies to comment on this proposed
information collection, as required by
the Paperwork Reduction Act of 1995.
An agency may not conduct or sponsor,
and a respondent is not required to
respond to, an information collection
unless it displays a currently valid

SUMMARY:

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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices
Office of Management and Budget
(OMB) control number. Currently, the
FDIC is soliciting comment concerning
a proposed new regulatory reporting
requirement for state nonmember banks
and state savings associations titled,
‘‘Annual Stress Test Reporting Template
and Documentation for Covered Banks
with Total Consolidated Assets of $50
Billion or More under the Dodd-Frank
Wall Street Reform and Consumer
Protection Act.’’ The proposal describes
the scope of reporting and the proposed
reporting requirements.
Comments must be received by
October 29, 2012

DATES:

You may submit written
comments by any of the following
methods:
• Agency Web Site: http://
www.fdic.gov/regulations/laws/federal/
propose.html. Follow the instructions
for submitting comments on the FDIC
Web site.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: [email protected].
Include RIN 3064–AD91 on the subject
line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, FDIC,
550 17th Street NW., Washington, DC
20429.
• Hand Delivery/Courier: Guard
station at the rear of the 550 17th Street
Building (located on F Street) on
business days between 7 a.m. and 5 p.m.
Public Inspection: All comments
received will be posted without change
to http://www.fdic.gov/regulations/laws/
federal/propose.html including any
personal information provided.
Comments may be inspected at the FDIC
Public Information Center, 3501 North
Fairfax Drive, Room E–1002, Arlington,
VA 22226 between 9 a.m. and 4:30 p.m.
on business days.
Additionally, please send a copy of
your comments to: By mail to the U.S.
Office of Management and Budget, 725
17th Street NW., #10235, Washington,
DC 20503 or by facsimile to
202.395.6974, Attention: Federal
Banking Agency Desk Officer.

ADDRESSES:

You
can request additional information from
Gary Kuiper, 202.898.3877, Legal
Division, Federal Deposit Insurance
Corporation, 550 17th Street NW.,
NYA–5046, Washington, DC 20429. In
addition, copies of the templates
referenced in this notice can be found
on the FDIC’s Web site (http://
www.fdic.gov/regulations/laws/federal/
propose.html).

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FOR FURTHER INFORMATION CONTACT:

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The FDIC
is requesting comment on the following
new proposed information collection:
Title: Annual Stress Test Reporting
Template and Documentation for
Covered Banks with Total Consolidated
Assets of $50 Billion or More under the
Dodd-Frank Wall Street Reform and
Consumer Protection Act.
OMB Control No.: 3064–NEW
Description: Section 165(i)(2) of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act 1 (Dodd-Frank
Act) requires certain financial
companies, including state nonmember
banks and state savings associations, to
conduct annual stress tests 2 and
requires the primary financial regulatory
agency 3 of those financial companies to
issue regulations implementing the
stress test requirements.4 A state
nonmember bank or state savings
association is a financial company and
therefore subject to the stress test
requirements if its total consolidated
assets are more than $10 billion and it
is regulated by the FDIC (‘‘covered
bank’’). Under section 165(i)(2), a
covered bank is required to submit to
the Board of Governors of the Federal
Reserve System (Board) and to its
primary financial regulatory agency a
report at such time, in such form, and
containing such information as the
primary financial regulatory agency may
require.5 On January 23, 2012, the FDIC
published in the Federal Register a
notice of proposed rulemaking (NPR)
implementing the section 165(i)(2)
annual stress test requirement.6 This
notice describes the reports and
information required to meet the
reporting requirements under section
165(i)(2). These information collections
will be given confidential treatment (5
U.S.C. 552(b)(4)).
The FDIC intends to use the data
collected through this proposal to assess
the reasonableness of the company-run
stress test results and to provide
forward-looking information to the FDIC
regarding a covered bank’s capital
adequacy. The FDIC also may use the
results of the stress tests to determine
whether additional analytical
techniques and exercises could be
appropriate to identify, measure, and
monitor risks at the covered bank. The
stress test results are expected to
support ongoing improvement in a
covered bank’s stress testing practices
with respect to its internal assessments
SUPPLEMENTARY INFORMATION:

1 Public

Law 111–203, 124 Stat. 1376, July 2010.
U.S.C. 5365(i)(2)(A).
3 12 U.S.C. 5301(12).
4 12 U.S.C. 5365(i)(2)(C).
5 12 U.S.C. 5365(i)(2)(B).
6 77 FR 3166, Jan. 23, 2012.
2 12

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52719

of capital adequacy and overall capital
planning.
The Dodd-Frank Act stress testing
requirements apply to all covered banks,
but the FDIC recognizes that many
covered banks with consolidated total
assets of $50 billion or more have been
subject to stress testing requirements
under the Board’s Comprehensive
Capital Analysis and Review (CCAR) or
Capital Plan Review (CapPR). The FDIC
also recognizes that these banks’ stress
tests will be applied to more complex
portfolios and therefore warrant a
broader set of reports to adequately
capture the results of the company-run
stress tests. These reports will
necessarily require more detail than
would be appropriate for smaller, less
complex banks. Therefore, the FDIC will
propose simplified and separate
reporting templates for covered banks
with total consolidated assets more than
$10 billion and less than $50 billion and
for covered banks with total
consolidated assets of $50 billion or
more. In cases where a covered bank
with assets less than $50 billion is
affiliated with an organization with
assets of $50 billion or more, the FDIC
reserves the authority to require that
covered bank use the reporting template
for larger banks. The FDIC may also, on
a case-by-case basis, require a covered
bank to report stress test results using a
simpler format to be specified by the
FDIC. The reporting templates for banks
with assets of $50 billion or more are
described below.
The FDIC has worked closely with the
Board and the Office of the Comptroller
of the Currency (OCC) to make the
agencies’ respective rules implementing
annual stress testing under the DoddFrank Act consistent and comparable by
requiring similar standards for scope of
application, scenarios, data collection
and reporting forms. The FDIC has
worked to minimize any potential
duplication of effort related to the
annual stress test requirements. The
FDIC also recognizes that many covered
banks with total consolidated assets of
$50 billion or more are required to
submit reports using CCAR reporting
form FR Y–14A.7 Therefore, the FDIC is
proposing to base reporting
requirements closely on the Board’s
form FR Y–14A for covered banks with
total consolidated assets of $50 billion
or more. The FDIC recognizes the Board
has a proposal to modify the FR Y–14A
out for comment and, to the extent
practical, the FDIC will keep its
reporting requirements consistent with
the Board’s FR Y–14A in order to
7 http://www.federalreserve.gov/reportforms.

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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices

minimize burden on covered
institutions.8
Description of Reporting Templates for
Banks With $50 Billion or More in
Assets
The FDIC DFAST–14A Summary
Schedule includes data collection
worksheets necessary for the FDIC to
assess the company-run stress test
results for baseline, adverse and
severely adverse scenarios as well as
any other scenario specified in
accordance with regulations specified
by the FDIC. The DFAST–14A Summary
Schedule includes worksheets that
collect information on the following
areas:
1. Income Statement;
2. Balance Sheet;
3. Capital Statement;
4. Retail Risk;
5. Available-for-Sale/Held to Maturity
Securities (AFS/HTM);
6. Trading;
7. Counterparty Credit Risk;
8. Operational Risk; and
9. Pre-Provision Net Revenue (PPNR).
Each covered bank reporting to the
FDIC using this form would be required
to submit to the FDIC a separate
DFAST–14A Summary Schedule for
each scenario provided to covered banks
in accordance with regulations
implementing Section 165(i)(2) as
specified by the FDIC.
Worksheets: Income Statement

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This income statement collects data
for the quarter preceding the planning
horizon and for each quarter of the
planning horizon for the stress test on
projected losses and revenues in the
following categories.
1. Loan losses;
2. Losses due to contingent
commitments and liabilities;
3. Other Than Temporary
Impairments (OTTI) on assets held to
maturity and available for sale;
4. Trading account losses;
5. Allowance for loan and lease
losses;
6. Pre-provision net revenue; and
7. Repurchase reserve/liability for
reps and warranties.
This schedule provides information
used to assess losses that covered banks
can sustain in adverse and severely
adverse stress scenarios.
Worksheets: Balance Sheet
The balance sheet statement collects
data for the quarter preceding the
planning horizon and for each quarter of
the planning horizon for the stress test
on projected equity capital, as well as
8 77

FR 40051, July 6, 2012.

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on assets and liabilities in the following
categories.
1. HTM securities;
2. AFS securities;
3. Loans;
4. Trading Assets;
5. Intangibles;
6. Deposits; and
7. Trading Liabilities.
The FDIC intends to use this worksheet
to assess the projected changes in assets
and liabilities that a covered bank can
sustain in an adverse and severely
adverse stress scenario. This worksheet
will also be used to assess the revenue
and loss projections identified in the
income statement worksheet.
Worksheets: Capital Worksheet
The capital statement collects data for
the quarter preceding the planning
horizon and for each quarter of the
planning horizon for the stress test on
the following areas:
1. Changes to Equity Capital;
2. Changes to Regulatory capital; and
3. Capital Actions.
The FDIC intends to use this worksheet
to assess the impact on capital of the
projected losses and projected changes
in assets that the covered bank can
sustain in a stressed scenario. In
addition to reviewing the worksheet in
the context of the balance sheet and
income statement projections, the FDIC
also intends to use this worksheet to
assess the adequacy of the capital plans
and capital planning processes for each
covered bank with total consolidated
assets of $50 billion or more.
Worksheets: Retail Projections
The Retail projections worksheets
collects data for each quarter of the
planning horizon for the stress test on
projected balances and losses for major
retail portfolios: Residential real estate,
credit card, automobile, student loans,
small business loans, and other
consumer. For residential real estate, the
worksheets collect data for first lien
mortgages, home equity lines of credit,
and home equity loans. For all major
retail portfolios, the worksheets contain
separate segments for domestic and
international loans for various product
types. Within each broad product-type
segment, the reporting for the portfolio
is divided into a number of subsegments that embody unique risk
characteristics. This modular producttype design of the Retail worksheet
allows for a targeted data collection that
encompasses only the material
portfolios in a given product area for a
particular covered bank. A covered bank
with total consolidated assets of $50
billion or more would be required to

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complete only the segments and subsegments material for that bank. This
design is intended to limit burden while
maximizing the supervisory information
produced from the collection.
Worksheets: Trading and Counterparty
Risk
The Trading and Counterparty Risk
worksheets collect projected losses
associated with a specified global
market risk shock from covered banks
with total consolidated assets of $50
billion or more with large trading
operations. The FDIC provides a set of
hypothetical shocks to the risk factors
most relevant to the trading and
counterparty positions of respondent
covered banks.
Worksheets: Operational Risk
The Operational Risk worksheets
collect data on covered banks’ with total
consolidated assets of $50 billion or
more projections of operational losses
for each quarter of planning horizon for
the stress test. Operational losses are
defined as losses arising from
inadequate or failed internal processes,
people, and systems or from external
events including legal losses. Some
examples of operational loss events are
losses related to improper business
practices (including class action
lawsuits), execution errors, and fraud.
Additional detail may be requested in
order to translate the respondent
covered banks’ historical loss
experience into operational loss
projections. Additional detail also may
be requested and on any budgeting
processes used to project operational
losses.
Completion of the Operational Risk
schedule would be required only for
those banks subject to advanced
approaches risk-based capital rules.
Worksheets: PPNR
For the PPNR schedule, covered
banks with total consolidated assets of
$50 billion or more must provide
projections for the three major
components of PPNR (net interest
income, non-interest income, and noninterest expense) for each quarter of the
planning horizon. Collection of these
data in this format is based on the
assumption that the revenues generated
by different business lines are affected
differently by different stress scenarios,
and such a view facilitates a more
robust analysis of the resulting
projections.

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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices
Description of FDIC DFAST–14A
Counterparty Credit Risk/CVA
Template
The CCR schedule collects, on various
worksheets, data to identify credit
valuation adjustment (CVA), exposures,
and CVA sensitivities for the respondent
covered bank’s top counterparties along
a number of dimensions, including
current CVA, stressed CVA, net current
exposure, and gross current exposure.
Covered banks with total consolidated
assets of $50 billion or more also must
submit aggregate CVA, exposures, and
CVA sensitivities by ratings categories.
The Notes to the CCR Schedule
worksheet allows respondent covered
banks to voluntarily submit additional
information to provide clarity to the
portfolio. Covered banks with total
consolidated assets of $50 billion or
more are required to report results
under two scenarios (adverse, severely
adverse) and two specifications
(Covered Bank, FDIC) to capture
Expected Exposure profiles.
Completion of the Counterparty
Credit Risk/CVA schedule would be
required only for those banks subject to
the market shock provided by the FDIC.
Description of FDIC DFAST–14A Basel
III Template
The Basel III & Dodd-Frank schedule
collects projections of Tier 1 Common
Equity, Tier 1 Capital, Risk-Weighted
Assets (RWA), and Leverage Exposures
(along with granular components of
those elements) for each quarter of the
planning horizon for the stress test
under baseline, adverse and severely
adverse scenarios, based on the Basel III
framework promulgated by the Basel
Committee on Bank Supervision.
Covered banks with total consolidated
assets of $50 billion or more also are
required to include data on the
projected impact of any significant
actions planned in response to Basel III
and the Dodd-Frank Act (for example,
asset sales, asset winddowns, and data
collection and modeling enhancements).

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Description of FDIC DFAST–14A
Company Variables Template
To conduct the stress test required
under this rule, a respondent covered
bank may need to project additional
economic and financial variables to
estimate losses or revenues for some or
all of its portfolios. In such a case, the
covered bank is required to complete
the DFAST–14A Company Variables
schedule for each scenario where such
additional variables are used to conduct
the stress test. Each scenario worksheet
collects the variable name (matching
that reported on the Scenario Variable

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Definitions worksheet), the actual value
of the variable during the third quarter
of the reporting year, and the projected
value of the variable for nine future
quarters.
Description of Supporting
Documentation
Covered banks with total consolidated
assets of $50 billion or more must
submit clear documentation in support
of the projections included in the
worksheets to support efficient and
timely review of annual stress test
results by the FDIC. The supporting
documentation should be submitted
electronically and is not expected to be
reported in the workbooks used for
required data reporting. This supporting
documentation must clearly describe
the methodology used to produce the
stress test projections, and must include
how the macroeconomic factors were
translated into a covered bank’s
projections, as well as technical details
of any underlying statistical methods
used. Where company-specific
assumptions are made that differ from
the broad macro-economic assumptions
incorporated in stress scenarios
provided by the FDIC, the
documentation must also describe such
assumptions and how those
assumptions relate to reported
projections. Where historical
relationships are relied upon, the
respondent covered banks must describe
the historical data and provide the basis
for the expectation that these
relationships would be maintained in
each scenario, particularly under
adverse and severely adverse
conditions.
Type of Review: New collection.
Affected Public: State nonmember
banks and state savings associations
supervised by the FDIC with total
consolidated assets of $50 billion or
more.
Estimated Number of Respondents: 4
Estimated Time per Response: 1,040
hours.
Estimated Total Annual Burden:
4,160 hours.
Comments submitted in response to
this notice will be summarized and
included in the request for OMB
approval. All comments will become a
matter of public record. Comments are
invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
FDIC, including whether the
information has practical utility;
(b) The accuracy of the FDIC’s
estimate of the burden of the collection
of information;

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(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
the collection on respondents, including
through the use of automated collection
techniques or other forms of information
technology;
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information; and
(f) The ability of FDIC-supervised
banks and thrifts with assets greater
than $50 billion to provide the
requested information to the FDIC by
January, 2013.
Dated at Washington, DC, this 23rd day of
August 2012.
Federal Deposit Insurance Corporation
Valerie J. Best,
Assistant Executive Secretary.
[FR Doc. 2012–21417 Filed 8–29–12; 8:45 am]
BILLING CODE 6714–01–P

FEDERAL FINANCIAL INSTITUTIONS
EXAMINATION COUNCIL
[Docket No. AS12–16]

Appraisal Subcommittee; Proposed
Policy Statements
Appraisal Subcommittee of the
Federal Financial Institutions
Examination Council
ACTION: Proposed policy statements and
request for comments.
AGENCY:

The Appraisal Subcommittee
(ASC) of the Federal Financial
Institutions Examination Council
requests public comment on a proposal
to revise ASC Policy Statements
(proposed Policy Statements). The
proposed Policy Statements provide
guidance to ensure State appraiser
regulatory programs (Program) 1 comply
with Title XI of the Financial
Institutions Reform, Recovery, and
Enforcement Act of 1989, as amended.
The proposed Policy Statements would
supersede the current ASC Policy
Statements.
DATES: Comments must be received on
or before October 29, 2012.
ADDRESSES: You may submit comments,
identified by any of the following
methods:
SUMMARY:

1 The 50 States, the District of Columbia, and four
Territories, which are the Commonwealth of Puerto
Rico, Commonwealth of the Northern Mariana
Islands, Guam, and United States Virgin Islands,
have State appraiser certifying and licensing
agencies with Programs monitored by the ASC
through the Compliance Review process.

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