Initial Federal Register Notice

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Federal Register / Vol. 78, No. 122 / Tuesday, June 25, 2013 / Notices
This section provides for the registration
of transfer agents within the appropriate
regulatory agencies (including the
Federal Reserve under 15 U.S.C.
78c(a)(34)(B)(ii). The data collected are
not given confidential treatment.
Abstract: Banks, BHCs, and trust
companies subject to the Federal
Reserve’s supervision that are lowvolume transfer agents voluntarily file
the notice on occasion with the Federal
Reserve. Transfer agents are institutions
that provide securities transfer,
registration, monitoring, and other
specified services on behalf of securities
issuers. The purpose of the notice,
which is effective until the agent
withdraws it, is to claim exemption
from certain rules and regulations of the
Securities and Exchange Commission
(SEC). The Federal Reserve uses the
notices for supervisory purposes
because the SEC has assigned to the
Federal Reserve responsibility for
collecting the notices and verifying their
accuracy through examinations of the
respondents. There is no formal
reporting form and each notice is filed
as a letter.
Current Actions: On April 15, 2013,
the Federal Reserve published a notice
in the Federal Register (78 FR 22261)
seeking public comment for 60 days on
the extension, with revision, of the FR
4013. The comment period for this
notice expired on June 14, 2013. The
Federal Reserve did not receive any
comments. The revision will be
implemented as proposed.
Final approval under OMB delegated
authority of the extension for three
years, without revision, of the following
reports:
1. Report title: Request for Extension
of Time to Dispose of Assets Acquired
in Satisfaction of Debts Previously
Contracted.
Agency form number: FR 4006.
OMB control number: 7100–0129.
Frequency: Annual.
Reporters: BHCs.
Annual reporting hours: 885 hours.
Estimated average hours per response:
5 hours.
Number of respondents: 177.
General description of report: This
information collection is required to
obtain a benefit pursuant to sections 4(a)
and 4(c)(2) of the BHC Act (12 U.S.C.
1843(a) and (c)(2)) and may be given
confidential treatment upon request.
The Federal Reserve has established a
procedure for requesting an extension in
its Regulation Y (12 CFR 225.22(d)(1)
and 225.140).
Abstract: A BHC that acquired voting
securities or assets through foreclosure
in the ordinary course of collecting a
debt previously contracted may not

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retain ownership of those shares or
assets for more than two years without
prior Federal Reserve approval. There is
no formal reporting form and each
request for extension must be filed at
the appropriate Reserve Bank of the
BHC. The Federal Reserve uses the
information provided in the request to
fulfill its statutory obligation to
supervise BHCs.
Current actions: On April 15, 2013,
the Federal Reserve published a notice
in the Federal Register (78 FR 22261)
seeking public comment for 60 days on
the extension, without revision, of the
FR 4006. The comment period for this
notice expired on June 14, 2013. The
Federal Reserve did not receive any
comments.
2. Report title: Stock Redemption
Notification.
Agency form number: FR 4008.
OMB control number: 7100–0131.
Frequency: On occasion.
Reporters: BHCs.
Reporters: BHCs.
Annual reporting hours: 155 hours.
Estimated average hours per response:
15.5 hours.
Number of respondents: 10.
General description of report: This
information collection is mandatory
pursuant to Sections 5(b) and (c) of the
BHC Act (12 U.S.C. 1844(b) and (c)) and
is generally not given confidential
treatment. However, a respondent may
request that the information be kept
confidential on a case-by-case basis.
Abstract: The BHC Act and
Regulation Y generally require a BHC to
seek prior Federal Reserve approval
before purchasing or redeeming its
equity securities. Given that a BHC is
exempt from this requirement if it meets
certain financial, managerial, and
supervisory standards, only a small
portion of proposed stock redemptions
actually require the prior approval of
the Federal Reserve. There is no formal
reporting form. The Federal Reserve
uses the information provided in the
redemption notice to fulfill its statutory
obligation to supervise BHCs.
Current actions: On April 15, 2013,
the Federal Reserve published a notice
in the Federal Register (78 FR 22261)
seeking public comment for 60 days on
the extension, without revision, of the
FR 4008. The comment period for this
notice expired on June 14, 2013. The
Federal Reserve did not receive any
comments.
3. Report title: Investment in Bank
Premises Notification.
Agency form number: FR 4014.
OMB control number: 7100–0139.
Frequency: On occasion.
Reporters: State member banks
(SMBs).

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Annual reporting hours: 6 hours.
Estimated average hours per response:
30 minutes.
Number of respondents: 11.
General description of report: This
information collection is required to
obtain a benefit pursuant to Section
24A(a) of the Federal Reserve Act (12
U.S.C. 371d(a)) and is not given
confidential treatment. However, a
respondent may request confidential
treatment for all or part of a notification,
which would be reviewed on a case-bycase basis.
Abstract: The Federal Reserve Act
requires SMBs to seek prior Federal
Reserve approval before making an
investment in bank premises that
exceeds certain thresholds. There is no
formal reporting form, and each
required request for prior approval must
be filed as a notification with the
appropriate Reserve Bank of the SMB.
The Federal Reserve uses the
information provided in the notice to
fulfill its statutory obligation to
supervise SMBs.
Current actions: On April 15, 2013,
the Federal Reserve published a notice
in the Federal Register (78 FR 22261)
seeking public comment for 60 days on
the extension, without revision, of the
FR 4014. The comment period for this
notice expired on June 14, 2013. The
Federal Reserve did not receive any
comments.
Board of Governors of the Federal Reserve
System, June 20, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013–15168 Filed 6–24–13; 8:45 am]
BILLING CODE 6210–01–P

FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
Board of Governors of the
Federal Reserve System.
SUMMARY: On June 15, 1984, the Office
of Management and Budget (OMB)
delegated to the Board of Governors of
the Federal Reserve System (Board) its
approval authority under the Paperwork
Reduction Act (PRA), pursuant to 5 CFR
1320.16, to approve of and assign OMB
control numbers to collection of
information requests and requirements
conducted or sponsored by the Board
under conditions set forth in 5 CFR Part
1320 Appendix A.1. 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,
AGENCY:

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Federal Register / Vol. 78, No. 122 / Tuesday, June 25, 2013 / Notices

supporting statements and approved
collection of information instruments
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.
DATES: Comments must be submitted on
or before August 26, 2013.
ADDRESSES: You may submit comments,
identified by FR Y–14A, FR Y–14Q, or
FR Y–14M, by any of the following
methods:
• Agency Web site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email:
[email protected].
Include OMB 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
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper form in Room MP–500 of the
Board’s Martin Building (20th and C
Streets NW.,) between 9:00 a.m. and
5:00 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: A
copy of the PRA OMB submission,
including the proposed reporting form
and instructions, supporting statement,
and other documentation will be placed
into OMB’s public docket files, once
approved. These documents will also be
made available on the Federal Reserve
Board’s public Web site at: http://
www.federalreserve.gov/apps/
reportforms/review.aspx or may be

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requested from the agency clearance
officer, whose name appears below.
Federal Reserve Board Clearance
Officer, Cynthia Ayouch, Division of
Research and Statistics, Board of
Governors of the Federal Reserve
System, Washington, DC 20551 (202)
452–3829. Telecommunications Device
for the Deaf (TDD) users may contact
(202) 263–4869, Board of Governors of
the Federal Reserve System,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION:

Request for Comment on Information
Collection Proposal
The following information collection,
which is being handled under this
delegated authority, has received initial
Board approval and is hereby published
for comment. At the end of the comment
period, the proposed information
collection, along with an analysis of
comments and recommendations
received, will be submitted to the Board
for final approval under OMB delegated
authority. Comments are invited on the
following:
a. Whether the proposed collection of
information is necessary for the proper
performance of the Federal Reserve’s
functions; including whether the
information has practical utility;
b. The accuracy of the Federal
Reserve’s estimate of the burden of the
proposed information collection,
including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected;
d. Ways to minimize the burden of
information collection on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
e. Estimates of capital or start-up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
Proposal To Approve Under OMB
Delegated Authority the Extension for
Three Years, With Revision, of the
Following Reports
Report title: Capital Assessments and
Stress Testing information collection.
Agency form number: FR Y–14A/Q/
M.
OMB control number: 7100–0341.
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

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Companies or large BHCs), as defined by
the Capital Plan rule (12 CFR 225.8).1
Estimated annual reporting hours:
Summary, 61,320 hours; Macro
scenario, 1,860 hours; Counterparty
credit risk (CCR), 2,521 hours; Basel III/
Dodd-Frank, 660 hours; and Regulatory
capital, 660 hours. FR Y–14 Q:
Securities risk, 1,200 hours; Retail risk,
1,920 hours; Pre-provision net revenue
(PPNR), 85,500 hours; Wholesale
corporate loans, 6,720 hours; Wholesale
commercial real estate (CRE) loans,
6,480 hours; Trading risk, 46,234 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, 1022 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, 713 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
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).
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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Federal Register / Vol. 78, No. 122 / Tuesday, June 25, 2013 / Notices
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
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: The Federal Reserve
proposes revising several schedules of
the FR Y–14A/Q/M reports, effective
2 BHCs that must re-submit their capital plan
generally also must provide a revised FR Y–14A in
connection with their resubmission.

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September 30, 2013. Most of the
proposed changes would affect the FR
Y–14A (semi-annual collection),
particularly the Summary Schedule.
The Summary Schedule and the Basel
III schedule would be significantly
revised in accordance with proposed
capital rulemakings published for
comment in August 2012.3 Specifically,
the Summary Schedule would be
revised to (1) expand the current Capital
worksheet into three worksheets for the
three definitions of regulatory capital
that could be applicable over the
planning horizon (General (12 CFR part
225, Appendix A), Advanced
Approaches (12 CFR part 225, Appendix
G), and Revised), and (2) add two
worksheets to collect risk-weighted
assets as outlined in the general riskbased capital rules and standardized
and advanced approaches (including
proposed changes). In addition, the
Federal Reserve proposes expanding the
collection of PPNR information to better
understand the details and dynamics of
BHC revenues and expenses. The
Federal Reserve also proposes other
smaller revisions to the Balance sheet,
Securities, OpRisk, Retail ASC 310–30,
and Retail Repurchase worksheets.
Other FR Y–14A schedules would be
revised to (1) remove two worksheets
and expand the collection of three
worksheets on the Counterparty
Schedule, and (2) add a worksheet to
the Counterparty Schedule to collect
counterparty data related to securities
financing transactions and repurchase
agreements and amend the scope of the
respondents to this schedule. Finally,
the FR–Y 14A/Q/M instructions and
templates would be clarified by (1)
adding, and expanding item definitions,
(2) standardizing formatting, and (3)
incorporating responses to industry
questions to increase consistency with
other regulatory reports, enhance
reporting guidance, and improve clarity.
The FR Y–14Q (quarterly collection)
would be revised to (1) alter the Basel
III schedule to conform with the
revisions made to the Y–14A Basel III
Schedule (2) add items to, delete other
items from, and modify several of the
tables of the Trading Schedule, (3) add
eight and modify five items across the
Wholesale Corporate Loan, Wholesale
CRE, Securities, and Retail Domestic
and International Auto Schedules, (4)
adjust the PPNR Schedule to conform
with the changes made to the PPNR
worksheets of the FR Y–14A, and (5)
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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add one and remove one field on the
Supplemental Schedule.
The FR Y–14M (monthly collection)
would be revised to (1) modify one and
expand one item on the Domestic First
Lien Closed-end 1–4 Family Residential
Loan Schedule, and (2) modify two
items on the Domestic Home Equity
Loan and Home Equity Line Schedule.
In addition, the FR Y–14M would be
amended for the June 30, 2013, report
date to reflect the removal of the Reason
for Default item from the Domestic
Home Equity Loan and Home Equity
Line schedule in response to comments
received during the public comment
period for the Federal Register notice
issued December 20, 2012 (77 FR
75434).
Draft files illustrating the proposed
revisions and clarifications to the
schedules and instructions will be
available on the Federal Reserve Board’s
public Web site at: http://www.federal
reserve.gov/apps/reportforms/
review.aspx. A summary of the
proposed revisions is provided below.
Proposed Revision to the FR Y–14A
(Semi-Annual Collection)
The proposed revisions to the FR Y–
14A consist of clarifying instructions,
adding data items, deleting data items,
and redefining existing data items.
These proposed changes would (1) be
responsive to industry comments, (2)
provide additional information to
greatly enhance the ability of the
Federal Reserve to analyze the validity
and integrity of firms’ projections, (3)
improve comparability across firms, (4)
increase consistency within the FR Y–
14A and between the FR Y–14A and FR
Y–14Q/M, as well as the Consolidated
Financial Statements for Bank Holding
Companies (FR Y–9C;OMB No. 7100–
0128), and (5) improve the scope of
supervisory models. The Federal
Reserve has conducted a thorough
review of proposed changes and
believes that the incremental burden of
these changes is justified given the need
for these data to properly conduct the
Federal Reserve’s supervisory
responsibilities related to the stress
testing and CCAR process.
Summary Schedule
The Federal Reserve proposes making
a number of changes to the Summary
Schedule (1) to better assess BHCs’
calculation of risk weighted assets and
certain other items detailed below, and
(2) to refine certain items based on
public feedback or to reduce burden on
the public.
Risk Weighted Assets (RWA) and
Regulatory Capital Related to Basel III.
The Capital Plan Rule published by the

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Federal Reserve on December 1, 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.’’ Three Federal
Register notices 4 were published for
public comment on July 7, 2012, that
outlined the joint proposed rulemaking
of the Federal Reserve, Office of the
Comptroller of the Currency, and the
Federal Deposit Insurance Corporation.
The proposed rules would revise and
replace the agencies’ risk-based and
leverage capital requirements to be
consistent with agreements reached by
the Basel Committee on Banking
Supervision in ‘‘Basel III: A Global
Regulatory Framework for More
Resilient Banks and Banking Systems’’
(Basel III). The revisions include
implementation of a new definition of
regulatory capital, a new common
equity tier 1 minimum capital
requirement, a higher minimum tier 1
capital requirement, and, for banking
organizations subject to the advanced
approaches capital rules, a
supplementary leverage ratio that
incorporates a broader set of exposures
in the denominator measure. In
addition, the proposed rules would
amend the methodologies for
determining risk-weighted assets and
introduce disclosure requirements that
would apply to top-tier banking
organizations domiciled in the United
States with $50 billion or more in total
assets.
Due to the timing of this proposal, the
annual CCAR and Dodd-Frank Act
stress test (DFAST), and the proposed
capital rulemaking, the Federal Reserve
considered several options for the
timing and scope of the proposal to
collect information related to the
proposed capital rulemaking. After
careful consideration of the various
options, the Federal Reserve determined
that proposing the following revisions at
this time would enable the Federal
Reserve to collect these data while
minimizing the burden to the industry.
Revisions to Capital worksheet. To
accommodate potential changes in the
capital regime, the Federal Reserve
proposes replacing the current Capital
worksheet with three worksheets
(General, Advanced Approaches, and
Revised Capital worksheets) that
incorporate the items of the current
Capital worksheet and add or revise
items to collect projections depending
on which capital regime is applicable to
4 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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the BHC at any given point in the
projection horizon. The General Capital
worksheet would be required for all
BHCs for all projection quarters until
the revised definition of capital becomes
effective for the BHC. The Advanced
Approaches Capital worksheet would be
required for BHCs that have received
supervisory approval to exit the
advanced approaches parallel run for all
projection quarters until the revised
definition of capital becomes effective
for the BHC.
Proposed General Capital worksheet.
On the General Capital worksheet, the
Federal Reserve proposes adding 10 line
items that collect detail on the additions
and adjustments to tier 1 capital that
result in the calculation of total riskbased capital under the general riskbased capital rules. The Federal Reserve
also proposes revising the description of
the item collecting data on taxes paid in
previous years to refer to the current
year, one year ago, and two years ago,
instead of specific years.
Proposed Advanced Approaches
Capital worksheet. On the Advanced
Approaches Capital worksheet, the
Federal Reserve proposes adding or
revising six items in the tier 1 capital
section to collect data consistent with
the definition of tier 1 capital under the
Advanced Approaches Rule (12 CFR
part 225, Appendix G). The Federal
Reserve also proposes adding 14 items
to collect detail on the additions and
adjustments to tier 1 capital that result
in the calculation of total risk-based
capital.
Proposed Revised Capital worksheet.
On the Revised Capital worksheet, the
Federal Reserve proposes revising 59
items under the header ‘‘Regulatory
Capital’’ to collect data elements
consistent with the Basel III definition
of capital, as well as an associated
‘‘Exceptions Bucket’’ for information
necessary to calculate certain
deductions from capital. The Federal
Reserve also proposes to remove
footnotes which collected explanatory
information on additions to (deductions
from) tier 1 capital, and footnotes which
provided the definition of ‘‘tier 1
common’’ per the Capital Plan Rule.
For all three Capital worksheets, the
Federal Reserve proposes to add one
item to confirm whether the filing
institution is internationally active,
which affects the calculation of
deferred-tax assets. The Federal Reserve
also proposes to add two items to ensure
that BHCs have included Trust Preferred
Securities within tier 1 capital in a
manner consistent with the phase-out
requirements of the Collins Amendment
(section 171 of the Dodd-Frank Act).
Finally, additional footnotes would be

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removed as they are now unnecessary
given the additional information
collected above.
Addition of RWA worksheets. To
accommodate the eventual collection of
RWA as outlined in the proposed
rulemakings, the Federal Reserve
proposes to add two RWA worksheets:
RWA General and RWA Advanced. The
items in the two worksheets correspond
to the general risk-based capital rules
and proposed standardized approach
and the advanced approaches, including
proposed changes. All BHCs would be
required to submit projections on the
General worksheet for all projection
quarters, where applicable. In addition,
BHCs subject to market risk capital
requirements would be required to
report items in the Market RWA section
of the applicable RWA worksheet, using
methodologies outlined in that rule.
BHCs would be required to complete
the General RWA section for all
projection quarters until the
Standardized Approach becomes the
applicable risk-based capital
requirement. At that time, BHCs would
be required to report items in the
Standardized Approach section. The
Memoranda for Derivative Contracts
section would collect notional principal
amounts by type of derivative contracts
for all quarters.
BHCs that have exited parallel run
prior to submission of the Summary
Schedule would be required to submit
projections on the Advanced
Approaches RWA worksheet for all
projection quarters. BHCs would be
required to report items in the
Advanced Approaches Credit Risk and
Operational Risks section for all
quarters. BHCs would be required to
report items in the Revised Advanced
Approaches section for all applicable
quarters. BHCs completing the
Advanced Approaches RWA worksheet
would still be required to complete the
General RWA worksheet in order to
calculate minimum risk-based capital
requirements per the advanced
approaches rule.
Proposed General RWA worksheet.
The proposed General RWA worksheet,
which is composed of 69 items, would
collect RWA as calculated under the
general risk-based capital framework
and the proposed standardized
approach, when applicable.
Proposed Advanced RWA worksheet.
The proposed Advanced RWA
worksheet, which would be composed
of 68 items, would collect RWA
projections as calculated under the
advanced approaches rule.
In addition to the above proposed
changes to the Capital worksheet, the
Federal Reserve proposes changes to

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Federal Register / Vol. 78, No. 122 / Tuesday, June 25, 2013 / Notices
several other worksheets in the
Summary Schedule as described below.
Current Balance Sheet worksheet. On
the Balance sheet worksheet, the
Federal Reserve proposes adding two
items to the Securities section, three
items to the Other Assets section, two
items to the Deposits section, and two
items to the Liabilities section to better
align this schedule with other regulatory
reports to provide better insight into
historical behavior of respondents’
assets and liabilities. In addition, the
Federal Reserve proposes to revise the
definition of one item, Accumulated
other comprehensive income (AOCI), in
the BHC equity capital section. This
item would now be estimated by all
BHCs using the conditions specified in
the applicable macroeconomic scenario,
rather than under the trading shock.
Securities Available-For-Sale (AFS)
Market Shock worksheet. Consistent
with the redefinition of AOCI in the
balance sheet worksheet, the Federal
Reserve proposes renaming this
worksheet to Securities AFS OCI by
Portfolio. This worksheet would collect
quarterly projections of other
comprehensive income (OCI) related to
fair-value gains and losses on AFS
securities that are based on the
conditions specified in the applicable
macroeconomic scenario.
PPNR Net Interest Income worksheet.
On the PPNR Net Interest Income
worksheet, the Federal Reserve proposes
redefining the information collected in
this worksheet to include all assets,
including nonaccrual loans which were
previously reported in the PPNR metrics
worksheet. BHCs would be expected to
include in the supporting
documentation a breakout of the major
categories of nonaccrual loans relevant
to their own institution. The Federal
Reserve proposes expanding detail on
BHC holdings of securities to better
understand the underlying dynamics of
securities balances and interest income
by breaking out data items for Treasury
and Agency debt, residential mortgagebacked securities issued by government
agencies, and all other securities.
Similarly, the Federal Reserve proposes
redefining the information collected in
this worksheet to include all liability
balances and adding one item to capture
other liabilities that fall outside the
existing liability types reported. To
reduce burden on the public, the
existing breakout of commercial and
industrial loans into small business
loans and other loans would be
collapsed into one item.
PPNR Metrics worksheet. Where
applicable, the aforementioned changes
to the PPNR Net Interest Income
worksheet would also be reflected in the

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PPNR Metrics worksheet. In addition,
the Federal Reserve would modify one,
delete three, and add seven items to
better understand how PPNR
projections compare to historical trends.
Based on feedback from the public, the
Federal Reserve proposes amending two
items on this worksheet. Finally, the
Federal Reserve proposes adding four
footnote items to allow the Federal
Reserve to better assess BHC PPNR
projections.
Outside of the worksheets named
above, the Federal Reserve is proposing
minor changes to the Balance Sheet,
Retail Balance & Loss Projections,
Securities OTTI Methodology,
Securities OTTI by Portfolio, Securities
AFS Market Shock, Securities Market
Value Sources, OpRisk, and PPNR
Projections worksheets.
Basel III Schedule
The Federal Reserve proposes adding
a line item to the Capital Composition
worksheet to capture deductions related
to insurance underwriting subsidiaries,
which will enable more precise
calculations of regulatory capital. The
Federal Reserve also proposes revising
the General and Advanced Approaches
RWA worksheets to align with certain
changes made to the Summary
Schedule. Specifically, the Federal
Reserve proposes adding to the General
RWA worksheet a ‘‘RWA per
Standardized Approach’’ section, which
would collect credit RWA using
methodologies under the revised
standardized approach.
Counterparty Schedule
The Federal Reserve proposes
eliminating the aggregate worksheets EE
Profile by Ratings and Credit Quality by
Rating from the Counterparty Schedule
and expanding the collection of the
counterparty specific worksheets CP
CVA by Top 200 CVA, EE Profile by CP,
and Credit Quality by CP to capture the
top counterparties that account for 95%
of credit valuation adjustment (CVA).
This expansion in scope is driven by the
need to close the sometimes significant
gap between the CVA of the top 200
counterparties and the BHC’s total CVA
and to capture exposures to
counterparties that are significantly
large in other dimensions, but which are
currently excluded from the top 200 by
CVA. Additionally, the Federal Reserve
proposes adding an additional
worksheet that collects the top 20
counterparties by Securities Financing
Transactions and Repo exposure to
account for counterparty exposures
other than derivatives. Finally, the
Federal Reserve proposes adding
columns on the worksheets of the

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template as appropriate to collect
stressed counterparty data based on the
Adverse and Severely Adverse scenarios
as part of the stress testing process.
In addition, the Federal Reserve
proposes amending the scope of the
respondents to the FR Y–14A CCR
schedule and Trading and CCR
worksheets of the FR Y–14A Summary
schedule to include any company that
the Board or the Director of the Division
of Banking Supervision and Regulation,
acting under delegated authority, may
require to complete these schedules
under 12 CFR 252.144(b)(2).
Proposed Revision to the FR Y–14Q
(Quarterly Collection)
The proposed revisions to the FR
Y–14Q consist of clarifying instructions,
adding data items, deleting data items,
redefining existing data items, and
structurally adjusting the reporting
templates. These proposed changes
would be responsive to industry
comments and provide additional
information to greatly enhance the
integrity and scope of supervisory
models. The Federal Reserve has
conducted a thorough review of
proposed changes and believes that the
proposed item additions and
modifications to the FR Y–14Q request
information currently collected by
respondents in their regular course of
business. A summary of the proposed
changes by schedule is provided below.
Trading Schedule
The proposed changes would (1)
provide additional granularity from
firms’ trading portfolios to capture
behavior that greatly varies from the
current aggregates, (2) bring asset
movement collections in line with the
stress scenarios from the CCAR and
DFAST of 2013, (3) be responsive to
industry feedback, and (4) remove
information that is not currently
applicable to many respondents. The
Federal Reserve has conducted
numerous industry calls regarding these
proposed changes and has determined
them to be low burden to respondents
on an aggregate basis.
The Federal Reserve proposes (1)
expanding the range of asset price
movements for the tables on the
Agencies and Rates DV01 worksheets;
(2) modifying the reporting units of the
Rates Vega worksheet; (3) adding seven
categories of assets across two tables on
the Agencies and Securitized Products
worksheets; (4) adding seven columns
that collect profit/loss (P/L) figures for
a given asset to the Corporate Credit—
Advanced; (5) removing six indices and
adding five emerging market specific
indices to three tables on the Corporate

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Federal Register / Vol. 78, No. 122 / Tuesday, June 25, 2013 / Notices

Credit—EM worksheet; (6) modifying
the aggregation level of tables on the
IDR—Corporate Credit worksheet; (7)
deleting the Private Equity—V2 and
Other Fair Value Assets—V2 worksheets
of the reporting template; (8) deleting
items from other worksheets; and (9)
adding option to report commodity P/L
figures in relative or absolute terms.
Wholesale Corporate Loan Schedule
The Federal Reserve proposes to add
one item and redefine two items on the
Wholesale Corporate Loan Schedule.
Specifically, the Federal Reserve would
add one item to identify borrowers that
are special purpose entities, which
would enhance the ability of the Federal
Reserve to identify loans with specific
characteristics that vary greatly from the
aggregate. Also, the Federal Reserve
would change the items Earnings Before
Interest, Taxes, Depreciation, and
Amortization (EBITDA) and Adjusted
EBITDA to be Operating Income and
Depreciation and Amortization, to
improve the clarity of financial
information.

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Wholesale Commercial Real Estate
(CRE) Schedule
The Federal Reserve proposes adding
one item to the Wholesale CRE
Schedule to identify loans that have
been subject to a troubled debt
restructuring. The proposed changes
would enhance the ability of the Federal
Reserve to identify loans which have
been modified per Accounting
Standards Codification (ASC) 310–40.
Additionally, the Federal Reserve
proposes to alter the scope of the items
Anchor Tenant and Loan Purpose to
more accurately capture the information
related to these items.
Securities Schedule
The Federal Reserve proposes
modifying one security type and the
collection of one aggregate item across
security types to the Securities
Schedule. Specifically, the Federal
Reserve proposes modifying the security
type Other Consumer Asset Backed
Securities (ABS) (excluding HEL ABS)
to be Other ABS (excluding HEL ABS)
in the tables on the Securities 1 and
Securities 2 worksheets of the Securities
Schedule. Also, the Federal Reserve
proposes adding Book Yield and
Purchase Date as columns to the
Securities 1 worksheet and adding a
column to collect realized gains/losses
from sales of securities in the reporting
quarter on the Securities 2 worksheet.
The proposed changes would enhance
the ability of the Federal Reserve to
model the behavior of the proposed
security type, which varies greatly from

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the aggregate and allow the Federal
Reserve to more accurately track the
changes in the portfolios of respondents.

the stress testing process. A summary of
the proposed changes by Schedule is
provided below.

Retail Domestic and International Auto
Schedules
The Federal Reserve proposes adding
four items to both the Retail US Auto
Loan Schedule and the Retail
International Auto Loan Schedule.
Specifically, the Federal Reserve
proposes adding the Basel II default
metrics: Probability of Default, Exposure
at Default, Loss Given Default, and
Expected Loss Given Default. The
proposed changes would facilitate the
review of Basel II implementation at
certain BHCs.

Domestic First Lien Closed-End 1–4
Family Residential Loan Schedule

PPNR Schedule
The Federal Reserve proposes revising
the PPNR schedule to conform with the
revisions made to the PPNR worksheets
of the FR Y–14A Summary Schedule as
described above.
Basel III Schedule
The Federal Reserve proposes revising
the Y–14Q Basel III schedule to conform
with the revisions made to the FR Y–
14A Basel III Schedule as described
above.
Supplemental Schedule
The Federal Reserve proposes adding
an additional field to the Supplemental
Schedule to capture the carrying value
of assets held on the balance sheet for
certain items. This additional field
would apply to 23 of the 30 asset
categories on the schedule for which
these data are unavailable from other
regulatory reports. These data would
allow the Federal Reserve to better
understand changes in firms’ balance
sheet composition each quarter.
Additionally, to improve consistency
across schedules, the Federal Reserve
proposes removing the item Graded
Loans for Purchasing or Carrying
Securities since such loans are not
included in the FR Y–14Q Wholesale
Corporate Loan Schedule.
Proposed Revision to the FR Y–14M
(Monthly Collection)
The proposed revisions to the FR
Y–14M consist of clarifying instructions
and modifying existing data items.
These proposed changes would be
responsive to industry comments and
provide additional clarity to information
already being collected. The Federal
Reserve has conducted a thorough
review of proposed changes and
believes that the incremental burden is
justified by the need for these data to
properly conduct the Federal Reserve’s
supervisory responsibilities related to

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The Federal Reserve proposes
modifying four data items on the
Domestic First Lien Closed-end 1–4
Family Residential Loan Schedule.
Specifically, the Federal Reserve would
expand the options for the Product
Type—Current and Product Type—
Origination items to include options for
a 1 year Adjustable Rate Mortgage (ARM
1) and a 15-year Adjustable Rate
Mortgage (ARM 15). This proposed
change would be responsive to an
industry comment received regarding
the changes to the FR Y–14M that were
effective March 31, 2013. Additionally,
in an effort to reduce reporting burden
and retain data used by other Agencies,
the Federal Reserve would change the
reporting requirement for the Loss/
Write-Down Amount item on both the
portfolio-level and loan-level collections
from mandatory for all respondents to
mandatory for firms regulated by the
OCC and optional for all others.
Domestic Home Equity Loan and Home
Equity Line Schedule
The Federal Reserve proposes
modifying two data items on the
Domestic Home Equity Loan and Home
Equity Line Schedule. Specifically, in
an effort to reduce reporting burden and
retain data used by other Agencies, the
Federal Reserve would change the
reporting requirement for the Loss/
Write-Down Amount item on both the
portfolio-level and loan-level collections
from mandatory for all respondents to
mandatory for firms regulated by the
OCC and optional for all others.
Board of Governors of the Federal Reserve
System, June 20, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013–15142 Filed 6–24–13; 8:45 am]
BILLING CODE 6210–01–P

FEDERAL RESERVE SYSTEM
Change in Bank Control Notices;
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies;
Correction
This notice corrects a notice (FR Doc.
2013–14635) published on page 37222
of the issue for Thursday, June 20, 2013.
Under the Federal Reserve Bank of
Atlanta heading, the entry for Overton
Financial Services, Inc., Livingston,
Tennessee, is revised to read as follows:

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