Final Federal Register Notice

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Federal Register / Vol. 78, No. 189 / Monday, September 30, 2013 / Notices

measure their regulatory capital levels
and regulatory capital ratios for each
quarter in accordance with the
transition arrangements in the Revised
Approach.13 Thus, incorporating the
Revised Approach into the 2014 stress
test cycle would require $10-$50 billion
companies to transition estimated
capital levels and ratios to the
definitions from the Revised Approach
in their projection of the last four
quarters of the planning horizon.
Requiring $10–$50 billion companies
to transition to the Revised Approach
during the planning horizon for the
2014 test and model alternative capital
calculations in the middle of the
planning horizon would add operational
and regulatory complexity and increase
the potential or likelihood of erroneous
calculations or assumptions. This
complexity and increased risk of error
could distract a $10–$50 billion
company from focusing on conducting
company-run stress tests that capture
salient risks to the company and
provide a meaningful forward-looking
assessment for the purposes of assessing
the company’s capital adequacy under
various scenarios. Finally, as the $10–
$50 billion companies are not required
to publicly disclose the results of the
stress tests conducted in the 2014 stress
test cycle, the additional burden of
implementing the Revised Approach in
the 2014 stress test cycle will not
provide the public with insight into a
firm’s capital adequacy under
hypothetical stressful circumstances.
For these reasons, the Federal Reserve
has, in an interim final rule, provided
$10–$50 billion companies with a oneyear delay in incorporating the Revised
Approach into their Dodd-Frank Act
company-run stress tests. Specifically,
$10–$50 billion companies are not
required to incorporate the changes
from the Revised Approach into their
company-run stress test conducted in
the stress test cycle that begins on
October 1, 2013. Instead, $10–50 billion
companies, as described under the
interim final rule, will be required to
estimate their pro forma capital levels
and ratios over the planning horizon
using the capital rules in place as of the
beginning of the 2014 stress testing
cycle on October 1, 2013.
There are three line items in the
proposed FR Y–16 report that would be
specifically affected by the Revised
Approach: tier 1 common equity capital,
non-common capital elements, and
RWAs. Consistent with the
requirements of the proposed interim
final rule, the Federal Reserve will
13 http://www.federalreserve.gov/newsevents/
press/bcreg/20130702a.htm.

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remove the tier 1 common and noncommon capital line items, and the
associated equity ratios, from the
Results Schedule for the initial
respondent panel that would be
submitting a report for the 2014 stress
test cycle. The Federal Reserve will
provide information regarding the
capital and RWA calculations in the
final instructions.
D. Technical Changes/Other Items
In response to a few technical (nonsubstantive) comments received, some
additional minor changes will be made
in the final reporting form and
instructions. These changes include
clarified reporting instructions for
income statement memoranda items;
new detailed technical reporting
instructions and the elimination of the
contact information schedule as this
information will be collected through
the Results Schedule cover sheet and
the Federal Reserve data collection
application.
Board of Governors of the Federal Reserve
System, September 24, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013–23727 Filed 9–27–13; 8:45 am]
BILLING CODE 6210–01–P

FEDERAL RESERVE SYSTEM
Agency Information Collection
Activities: Announcement of Board
Approval Under Delegated Authority
and Submission to OMB and
Submission to OMB with Request for
Comments
Board of Governors of the
Federal Reserve System.
SUMMARY: Notice is hereby given of the
final approval of a proposed information
collection by the Board of Governors of
the Federal Reserve System (Board)
under Office of Management and Budget
(OMB) delegated authority, as per 5 CFR
1320.16 (OMB Regulations on
Controlling Paperwork Burdens on the
Public). Board-approved collections of
information are incorporated into the
official OMB inventory of currently
approved collections of information.
Copies of the Paperwork Reduction Act
Submission, supporting statements and
approved collection of information
instrument(s) are placed into OMB’s
public docket files. The Federal Reserve
may not conduct or sponsor, and the
respondent is not required to respond
to, an information collection that has
been extended, revised, or implemented
on or after October 1, 1995, unless it
displays a currently valid OMB control
number.
AGENCY:

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On June 25, 2013, the Federal Reserve
published a notice in the Federal
Register (78 FR 38033) requesting
public comment for 60 days to extend,
with revision, the Capital Assessments
and Stress Testing information
collection. The comment period for this
notice expired on August 26, 2013. The
Federal Reserve received 17 comment
letters. The substantive comments are
summarized and addressed below.
DATES: Comments are to be submitted
on or before November 29, 2013.
Interested parties are invited to
submit written comments to any or all
of the agencies. All comments, which
should refer to the OMB control
number, will be shared among the
agencies.
ADDRESSES: You may submit comments
identified by FR Y–14A/Q/M, by any of
the following methods:
• Agency Web site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments
on the http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: regs.comments@
federalreserve.gov. Include the OMB
control number in the subject line of the
message.
• Fax: 202–452–3819 or 202–452–
3102.
• Mail: Robert deV. Frierson,
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 Web site at http://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
except as necessary 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 in Room MP–
500 of the Board’s Martin Building (20th
and C Streets, NW.) between 9 a.m. and
5 p.m. on weekdays.
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:
Federal Reserve Board Clearance
Officer—Cynthia Ayouch—Office of the
Chief Data Officer, Board of Governors
of the Federal Reserve System,
Washington, DC 20551 (202) 452–3829.

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Federal Register / Vol. 78, No. 189 / Monday, September 30, 2013 / Notices
Telecommunications Device for the Deaf
(TDD) users may contact (202) 263–
4869, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
OMB Desk Officer—Shagufta
Ahmed—Office of Information and
Regulatory Affairs, Office of
Management and Budget, New
Executive Office Building, Room 10235,
725 17th Street NW., Washington, DC
20503. Final approval under OMB
delegated authority to extend, with
revision, the following report:
Report title: Capital Assessments and
Stress Testing information collection.
Agency form number: FR Y–14A/Q/
M.
OMB Control number: 7100–0341.
Effective Date: September 30, 2013.
Frequency: Annually, semi-annually,
quarterly, and monthly.
Reporters: Large banking
organizations that meet an annual
threshold of $50 billion or more in total
consolidated assets (large Bank Holding
Companies or large BHCs), as defined by
the Capital Plan rule (12 CFR 225.8).1
Estimated annual reporting hours:
Summary, 61,680 hours; Macro
scenario, 1,860 hours; Counterparty
credit risk (CCR), 2,520 hours; Basel III/
Dodd-Frank, 660 hours; and Regulatory
capital, 600 hours. FR Y–14Q: Securities
risk, 1,200 hours; Retail risk, 1,920
hours; Pre-provision net revenue
(PPNR), 85,320 hours; Wholesale
corporate loans, 6,720 hours; Wholesale
commercial real estate (CRE) loans,
6,480 hours; Trading risk, 46,224 hours;
Basel III/Dodd-Frank, 2,640 hours;
Regulatory capital, 4,800 hours;
Operational risk, 3,360 hours; Mortgage
Servicing Rights (MSR) Valuation, 864
hours; Supplemental, 960 hours; and
Retail Fair Value Option/Held for Sale
(Retail FVO/HFS), 1,216 hours. FR Y–
14M: Retail 1st lien mortgage, 153,000
hours; Retail home equity, 146,880
hours; and Retail credit card, 91,800
hours. FR Y–14 On-Going Automation
for existing respondents: 9,120 hours.
Estimated average hours per response:
FR Y–14A: Summary, 1,028 hours;
Macro scenario, 31 hours; CCR, 420
hours; Basel III/Dodd-Frank, 22 hours;
and Regulatory capital, 20 hours. FR Y–
14Q: Securities risk, 10 hours; Retail
risk, 16 hours; PPNR, 711 hours;
Wholesale corporate loans, 60 hours;
Wholesale CRE loans, 60 hours; Trading
risk, 1,926 hours; Basel III/Dodd-Frank,
22 hours; Regulatory capital, 40 hours;
Operational risk, 28 hours, MSR
Valuation, 24 hours; Supplemental, 8
1 The Capital Plan rule applies to every top-tier
large BHC. This asset threshold is consistent with
the threshold established by section 165 of the
Dodd-Frank Act relating to enhanced supervision
and prudential standards for certain BHCs.

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hours; and Retail FVO/HFS, 16 hours.
FR Y–14M: Retail 1st lien mortgage, 510
hours; Retail home equity, 510 hours;
and Retail credit card, 510 hours. FR Y–
14, On-going revisions for existing
respondents, 480 hours.
Number of respondents: 30.
General description of report: The FR
Y–14 series of reports are authorized by
section 165 of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act of 2010 (Dodd-Frank Act), which
requires the Federal Reserve to ensure
that certain BHCs and nonbank financial
companies supervised by the Federal
Reserve are subject to enhanced risk
based and leverage standards in order to
mitigate risks to the financial stability of
the United States (12 U.S.C. 5365).
Additionally, section 5 of the BHC Act
authorizes the Board to issue regulations
and conduct information collections
with regard to the supervision of BHCs
(12 U.S.C. 1844).
As these data are collected as part of
the supervisory process, they are subject
to confidential treatment under
exemption 8 of the Freedom of
Information Act (FOIA) (5 U.S.C.
552(b)(8)). In addition, commercial and
financial information contained in these
information collections may be exempt
from disclosure under exemption 4 of
FOIA (5 U.S.C. 552(b)(4)). Such
exemptions would be made on a caseby-case basis.
Abstract: The data collected through
the FR Y–14A/Q/M schedules provide
the Federal Reserve with the additional
information and perspective needed to
help ensure that large BHCs 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.
The annual Comprehensive Capital
Analysis and Review (CCAR) exercise is
also complemented by other Federal
Reserve supervisory efforts aimed at
enhancing the continued viability of
large BHCs, including continuous
monitoring of BHCs’ planning and
management of liquidity and funding
resources and regular assessments of
credit, market and operational risks, and
associated risk management practices.
Information gathered in this data
collection is also used in the
supervision and regulation of these
financial institutions. In order to fully
evaluate the data submissions, the
Federal Reserve may conduct follow up
discussions with or request responses to
follow up questions from respondents,
as needed.
The semi-annual FR Y–14A collects
large BHCs’ quantitative projections of

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balance sheet, income, losses, and
capital across a range of macroeconomic
scenarios and qualitative information on
methodologies used to develop internal
projections of capital across scenarios.2
The quarterly FR Y–14Q collects
granular data on BHCs’ various asset
classes and PPNR for the reporting
period. The monthly FR Y–14M
comprises three loan- and portfoliolevel collections, and one detailed
address matching collection to
supplement two of the portfolio and
loan-level collections. The FR Y–14Q
and the FR Y–14M are used to support
supervisory stress test models and for
continuous monitoring efforts.
Current actions: On June 25, 2013, the
Federal Reserve published a notice in
the Federal Register (78 FR 38033)
requesting public comment for 60 days
on the revision of the FR Y–14
information collection for September 30,
2013. Most of the proposed changes
affected the FR Y–14A, particularly the
Summary and Basel III schedules, in
accordance with proposed capital
rulemakings published for comment in
August 2012.3 Other proposed changes
included adding items to enhance
supervisory models, removing items to
reduce burden, and modifying items.
The comment period expired on August
26, 2013. All substantive comments are
summarized and addressed below.
Summary of Comments
The Federal Reserve received 17
comment letters addressing the
proposed changes to this information
collection: 12 from BHCs, 3 from trade
associations, and 2 from private
companies. Many of the comments
received requested clarification of the
instructions for the information to be
reported, or were technical in nature.
These comments will be addressed in
the final FR Y–14 reporting instructions.
The Federal Reserve also received
four comments not directly related to
the proposed revisions to the FR Y–14
information collection regarding
suggestions to (1) provide the adverse
and severely adverse macroeconomic
scenarios and any trading and
counterparty component earlier than
they have been provided in the past;
and (2) use the September Blue Chip
Consensus instead of the October Blue
Chip Consensus to inform the
macroeconomic scenarios provided.
2 BHCs that must re-submit their capital plan
generally also must provide a revised FR Y–14A in
connection with their resubmission.
3 77 FR 52792, published August 30, 2012,
proposed to revise and replace the Federal
Reserve’s risk-based and leverage capital
requirements to be consistent with the most recent
Basel requirements.

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Because these comments do not relate
directly to this information collection,
the Federal Reserve is not addressing
them now but may consider them in
connection with future modifications to
its capital planning and stress testing
rules. The following is a detailed
discussion of aspects of the proposed FR
Y–14 collection for which the Federal
Reserve received one or more
substantive comments and an
evaluation of, and responses to the
comments received.
General Comments
In general, commenters expressed
concerns about the overall expansion of
the information collection, timing of the
implementation of new items, and the
burden new items impose on reporters.
Specifically, several commenters stated
that the FR Y–14 currently has a high
level of granularity, which is increasing
with the proposed changes, and
recommended that the Federal Reserve
revise the current collection and limit
proposed changes to include only the
most relevant information. The Federal
Reserve understands and appreciates
the importance of minimizing burden to
the public and regularly reviews the
information requested by the FR Y–14A/
Q/M to ensure all data elements are
essential to the supervisory and
company-run stress testing processes
and the ongoing supervision of these
companies. Specific data elements have
previously been removed both as a
result of these reviews and in response
to public comments.
In regard to overall timing, several
commenters requested that going
forward the Federal Reserve either set a
mandatory minimum amount of time
between the finalization of changes to
the FR Y–14 and the implementation
date or alter the timeframe by which
proposals are issued and finalized. The
Federal Reserve recognizes the
challenges associated with
implementing changes to FR Y–14
reporting requirements in a timely
manner when the changes are finalized
close to the reporting deadline. The
Federal Reserve is carefully considering
various longer-term options to address
this comment that would increase the
time between the finalization of changes
to the FR Y–14 and their
implementation date.
Commenters also suggested several
improvements to the current Frequently
Asked Questions (FAQ) process,
including establishing a searchable
repository, setting a specific schedule
for responding to questions, and
integrating questions and responses into
the FR Y–14 instructions. The Federal
Reserve is continually working to

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improve communication with
respondents and, as noted in the initial
Federal Register notice, has
incorporated all relevant historical
FAQs into the proposed instructions.
The incorporation of relevant comments
and questions related to the FR Y–14
into the instructions will continue on a
regular basis with a goal of ending the
FAQ process as soon as practicable.
Several commenters requested that
implementation of the changes related
to the revised regulatory capital
approach 4 (Revised Approach) be
delayed to allow time for updating and
integrating their financial reporting
systems. Another commenter suggested
that companies that are not subject to
the Board’s advanced approaches
capital rules should have significantly
reduced reporting requirements.
Because the Capital Plan Rule issued
on November 22, 2011, requires BHCs to
calculate the regulatory capital ratios
reported in its capital plan according to
the current Regulation Y requirements
or ‘‘any successor regulation,’’ the
Federal Reserve will not delay the
implementation of the proposed
changes or reduce reporting
requirements. The Federal Reserve has,
however, engaged in substantial
industry outreach regarding the
proposed schedules and the vast
majority of items on the schedules are
unchanged from the proposal. In
addition, the Federal Reserve is
publishing two interim final rules that
provide transition arrangements to the
Revised Approach.
As mentioned in prior public
comment letters regarding proposed FR
Y–14 changes, commenters requested
that the Federal Reserve provide
respondents a stated, minimum amount
of time to integrate data from mergers or
acquisitions. Additionally, commenters
requested the Federal Reserve limit the
amount of historical data required to be
reported from portfolios acquired
through a merger or acquisition. The
Federal Reserve is carefully considering
the appropriate level of guidance to
provide for reporting such data.
However, several firms that have
completed a merger or acquisition have
been granted extensions to allow
additional time to reach full compliance
with the schedules.5 The Federal
Reserve will continue to consider
requests for extension or modification
on a case-by-case basis rather than
4 See

12 CFR parts 208, 217, and 225.
of such letters can be found on the
Board’s public Web site http://
www.federalreserve.gov/bankinforeg/
LegalInterpretations/bhc_changeincontrol2013.htm.
5 Examples

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establishing a fixed transition period in
the reporting instructions.
Because of required reconciliation
between the FR Y–14Q and the
Consolidated Financial Statements for
Bank Holding Companies (FR Y–9C;
OMB No. 7100–0128), several
commenters requested that the filing
deadline of the FR Y–14Q be after the
FR Y–9C deadline for the corresponding
quarter. After careful consideration, the
Federal Reserve will change the filing
deadline of the FR Y–14Q to seven
calendar days after the FR Y–9C
deadline, effective for the December 31,
2013, as of date. The new filing deadline
will be 47 calendar days after the March
31, June 30, and September 30 as of
dates, and 52 calendar days after the
December 31 as of date, unless that day
falls on a weekend or a holiday, in
which case the deadline is the next
business day. However, the Federal
Reserve will continually weigh the
improvements in reporting as a result of
this change against the costs to the
Federal Reserve.
Commenters also suggested several
improvements to the current Frequently
Asked Questions (FAQ) process,
including establishing a searchable
repository, setting a specific schedule
for responding to questions, and
integrating questions and responses into
the FR Y–14 instructions. The Federal
Reserve is continually working to
improve communication with
respondents and, as noted in the initial
Federal Register notice, has
incorporated all relevant historical
FAQs into the proposed instructions.
The incorporation of relevant comments
and questions related to the FR Y–14
into the instructions will continue on a
regular basis with a goal of ending the
FAQ process as soon as practicable.
One commenter requested that the
technical submission instructions be
included along with the schedule
instructions on the Federal Reserve’s
public Web site. Also, several
commenters requested that the edit
checks across schedules be altered to
reduce the number of failures by
changing logic and tolerance levels and
considering data gaps. The Federal
Reserve will post the technical
instructions, as well as make
appropriate adjustments to the edit
check process.
Numerous commenters noted that the
proposed templates and instructions
implied that all items related to capital
and risk weighted assets (RWA) would
be based on the proposed Revised
Approach, and recommended that the
Federal Reserve base these on the
Revised Approach. The Federal Reserve
will adjust the proposed templates and

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instructions to comply with the Revised
Approach.6
Finally, several commenters noted
that the instructions to several
schedules specifically reference FICO
scores, which could be considered an
endorsement of FICO and its products.
These commenters further noted that
respondents should be able to report
credit scores other than the FICO score.
Because existing data items have been
used to calibrate and validate current
supervisory models, and the data as of
September 30 are used as a benchmark
for these models, the Federal Reserve
will remove the requirement to submit
or map to FICO scores in the schedules
is effective with data as of October 31,
2013. Beginning with the data as of
October 31, 2013, for the FR Y–14M and
December 31, 2013, for the FR Y–14Q,
respondents will have the option to
continue reporting credit score items as
in prior submissions or to begin
submitting other credit scores with
sufficient supporting documentation
describing the reported credit score. To
collect additional information regarding
the use of credit scores and to further
refine a response to this comment that
minimizes burden to respondents, the
Federal Reserve is extending the
comment period on credit score-related
items for an additional 60 days from
publication of this Federal Register
notice. The appropriate schedule
changes related to credit score
collection would be effective for the
March 31, 2014, as of date. See the
Supplementary Information section
below for additional information.

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FR Y–14A
The majority of comments received
regarding the FR Y–14A requested
clarification of item definitions and will
be addressed in the final instructions.
Some comments, however, suggested
modifications to data items and are
addressed below. As noted in the initial
Federal Register notice, the Federal
Reserve stated that the proposed items
related to the Revised Approach in the
Summary schedule would be modified
to align with the final rulemaking.
Accordingly, several of these items will
be modified, added and deleted to be
consistent with the final Revised
Approach.
Summary Schedule
Balance Sheet Worksheet. One
commenter recommended that the
proposed item Other Liabilities be split
into Federal Funds Purchased &
6 For additional guidance regarding how
schedules should be populated regarding capital
and RWA, see 12 CFR 225.8; 12 CFR part 252,
subparts F, G, and H.

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Repurchase Agreements and NonInterest Bearing Other Liabilities. The
Federal Reserve will split Other
Liabilities into Federal Funds &
Repurchase Agreements and Other
Liabilities. Another commenter
requested that the column collecting
information for the as of date be added
back to the schedule. The collection of
23 of the 30 asset categories for the as
of date have been moved to the
Supplemental schedule, and the
remaining 7 are reported on the FR Y–
9C.
General and Advanced RWA. One
commenter requested that the items in
the Memoranda for Derivatives
Contracts section of the General RWA
worksheet have a materiality threshold
to alleviate burden for respondents that
have non-material derivatives portfolios.
The Federal Reserve believes these
items are essential regardless of size for
its analysis of companies’ RWA and
notes that the items are required to be
reported on the FR Y–9C without a
materiality threshold. The same
commenter requested that the Federal
Reserve allow respondents to submit the
items on the General and Advanced
RWA worksheets in a more aggregated
form. The Federal Reserve will not make
this change as the items on the General
and Advanced RWA worksheets are
presented in accordance with the
Revised Approach.
Capital Worksheets. One commenter
noted that all three proposed Capital
worksheets (General, Advanced
Approaches, and Revised) would have
required respondents to report their
RWA according to the standardized
approach. In an effort to increase
consistency with the FR Y–9C, the
Federal Reserve reorganized the
structure of the Capital worksheets, and
in doing so has addressed the comment.
Specifically, the General, Advanced
Approaches and Revised Capital
worksheets have been collapsed into
one Capital worksheet that allows
respondents to submit capital
projections according to all three capital
rules, which are outlined in different
sections of the worksheet. Another
commenter suggested that formulas be
added to the Capital worksheets that
would convert reported nominal capital
line item amounts according to the
transition periods outlined in the
Revised Approach so that the calculated
total capital would reflect the
appropriate transition periods. The
Federal Reserve will replace the
formulas for the subtotals of capital
components and total capital with
required line items in which
respondents would input these subtotal
and total amounts, reflective of the

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Revised Approach transition provisions
for a given quarter.
PPNR Worksheets. One commenter
noted that the Average Rates Earned
section for Interest Income on the PPNR
Net Interest Income (NII) worksheet
does not collect average rates for
nonaccrual loans. The Federal Reserve
will add an item, Nonaccrual Loans, to
the Average Rates Earned section for
Interest Income. Also regarding the
PPNR NII worksheet, one commenter
noted that item 47, Other Liabilities, in
the Average Liability Rates section
should always be reported as zero. The
Federal Reserve will remove the item.
Another commenter expressed a lack of
clarity regarding proposed line items
89A, Curve, and 89B, Index Rate, on the
PPNR Metrics worksheet. The Federal
Reserve will make the following
changes: remove the basis point
reporting unit requirement from item
89A; and split item 89B with two
items—Index Rate and Spread (Relative
to Index Rate). The same commenter
was seeking guidance on the proposed
item Residential Home Equity
Originations Industry Market Size—
Volume of the PPNR Metrics Worksheet,
noting that these data would be difficult
to report. After consideration of the
potential cost expressed by the
commenter, the Federal Reserve will
remove this item.
Basel III Schedule
One commenter requested that the
Federal Reserve either shorten the
forecast period in the Basel III Schedule
or provide macroeconomic scenario
projections beyond the current 13
quarter projection. The instructions
state that respondents are to generate
their own macroeconomic scenario
variables beyond the Supervisory
Baseline scenario projections.
Additionally, respondents in past CCAR
exercises have largely complied with
these reporting requirements in prior
submissions of the FR Y–14A Basel III
Schedule.
Counterparty Schedule
Several commenters expressed
concern over the increase in required
data submission associated with the
proposed expansion of one worksheet
from top 200 to top 95 percent of
counterparties by credit value
adjustment, and requested that the
Federal Reserve set a materiality
threshold. The Federal Reserve believes
this level of granularity is necessary to
capture a firm’s total exposure, and that
materiality considerations should apply
to the total exposure across all
counterparties, not to individual
counterparties. Furthermore, the

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instructions have been updated to report
counterparties within the same netting
set as one consolidated entry as opposed
to listing the individual counterparties
within the netting set, which can
decrease the level of granularity.
Additionally to offset the increased
reporting burden, the Federal Reserve
will remove two worksheets that collect
counterparty-level information, as
initially proposed. One commenter
requested that central counterparties
(CCPs) be excluded from the
supervisory data collection because they
have multiple levels of risk mitigation.
The Counterparty schedule collects
counterparty data based on the size of
the exposure and not the probability of
loss, and the Federal Reserve will retain
the requirement to report information
for CCPs.
Operational Risk Schedule
One commenter stated that the
proposed combination of Operational
Risk worksheets on the Summary
Schedule would require a level of
granularity that would decrease the
relevance of the data and requested that
the Federal Reserve remove this
collection as a requirement. The
proposal involved simply combining
two worksheets into one worksheet and
the data required to be reported on the
proposed combined worksheet is
identical to the data required
previously. The proposed worksheet
maintains the flexibility for respondents
to determine the appropriate level of
granularity that fully captures projected
operational risk losses.
FR Y–14Q
The majority of comments received
regarding the FR Y–14Q requested
clarification of item definitions and will
be addressed in the final instructions.
Some comments, however, suggested
modification to data items and are
addressed below.
PPNR Schedule
The Federal Reserve will modify the
FR Y–14Q PPNR Schedule to reflect the
changes made to the PPNR worksheets
in the FR Y–14A Summary Schedule, as
described above.

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Trading Schedule
One commenter requested that the
Index Tranches and Bespoke portion of
Table B on the IDR—Corporate Credit
worksheet be split into two portions, an
Index Tranches portion and a Bespoke
portion, to avoid index tranches from
being commingled with bespoke
tranches containing different underlying
names. The Federal Reserve will split

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the proposed portion into the two
aforementioned portions.
Wholesale Corporate Loan Schedule
Several commenters noted the
significant effort required to obtain the
information for the proposed Special
Purpose Entity Flag and recommended
that the Federal Reserve delay
implementation of the item. The Federal
Reserve will delay implementation of
the item until March 31, 2014.
FR Y–14M
Domestic Home Equity Loan and Home
Equity Line Schedule
One commenter noted that there is an
inconsistency between the Domestic
First Lien Closed-end 1–4 Family
Residential Mortgage (First Lien)
schedule and the Domestic Home Equity
Loan and Home Equity Line (Home
Equity) schedule regarding the Troubled
Debt Restructuring (TDR) item.
Specifically, the TDR item on the First
Lien schedule applies to all loans,
whereas the TDR item on the Home
Equity schedule applies to only loans
that have been modified. The Federal
Reserve will update the TDR item on the
Home Equity schedule to apply to all
loans.
SUPPLEMENTARY INFORMATION:
Request for Comment on Information
Collection Proposal
Abstract: As mentioned above in the
Current Actions section, the Federal
Reserve has removed the requirement to
submit or map to FICO scores in the
schedules effective with data as of
October 31, 2013. Beginning with the
data as of October 31, 2013, for the FR
Y–14M and December 31, 2013, for the
FR Y–14Q, respondents would have the
option to continue reporting credit score
items as in prior submissions or to begin
submitting other credit scores with
sufficient supporting documentation
describing the reported credit score. To
collect additional information regarding
the use of credit scores and to further
refine a response to this comment that
minimizes burden to respondents, the
Federal Reserve is extending the
comment period on credit score related
items for an additional 60 days from
publication of this Federal Register
notice. The appropriate schedule
changes related to credit score
collection would be effective for the
March 31, 2014, as of date.
For the extended comment period, the
Federal Reserve is requesting comment
and feedback regarding the following
topics (1) the types of credit scores
generally used by BHCs in the lines of
business reported on the FR Y–14M and

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Retail FR Y–14Q schedules, (2) whether
the industry generally uses internallygenerated or externally-acquired credit
scores, (3) issues to consider when
validating the usefulness of a credit
score (for example, Regulation Z
considerations), (4) any industry
standards with respect to credit scores,
(5) mapping across industry-standard
credit scores, (6) other ways credit
scores can be made comparable across
different scores, and (7) other composite
measures, besides credit scores, that can
be used to measure borrower credit
worthiness.
All comments will become a matter of
public record. Written comments should
address the accuracy of the burden
estimates and ways to minimize burden
including the use of automated
collection techniques or the use of other
forms of information technology as well
as other relevant aspects of the
information collection request.
Board of Governors of the Federal Reserve
System, September 24, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013–23694 Filed 9–27–13; 8:45 am]
BILLING CODE 6210–01–P

FEDERAL RESERVE SYSTEM
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The applications will also be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.

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