FRY14AQM_20130930_omb

OMB Supporting Statement for the
Capital Assessments and Stress Testing information collection
(FR Y-14A/Q/M; OMB No. 7100-0341)
Summary
The Board of Governors of the Federal Reserve System (Board), under delegated
authority from the Office of Management and Budget (OMB), proposes to extend, with revision
the Capital Assessments and Stress Testing information collection (FR Y-14A/Q/M; OMB No.
7100-0341).
The Federal Reserve proposed revising several schedules of the FR Y-14A/Q/M reports,
effective September 30, 2013. Most of the proposed changes affect the FR Y-14A (semi-annual
collection), particularly the Summary Schedule. The Summary Schedule and the Basel III
schedule will be significantly revised in accordance with the final Revised Approach.1
Specifically, the revisions to the Summary Schedule include (1) modifying the current Capital
worksheet to reflect the three definitions of regulatory capital that could be applicable over the
planning horizon (General (12CFR part 225), Advanced Approaches (12CFR part 225, Appendix
G), and Revised), (2) adding two worksheets to collect risk-weighted assets as outlined in the
general risk-based capital rules and standardized and advanced approaches, and (3) modifying
subtotals of capital components and total capital to reflect the Revised Approach transition
provisions. In addition, the Federal Reserve is expanding the collection of PPNR information to
better understand the details and dynamics of BHC revenues and expenses. The Federal Reserve
also proposed other smaller revisions to the Balance sheet, Securities, OpRisk, Retail ASC 31030, and Retail Repurchase worksheets. Other FR Y-14A schedules will 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. The Federal Reserve will also remove references to specific credit
scores in the FR Y-14Q/M beginning with the data as of October 31, 2013, for the FR Y-14M
and December 31, 2013, for the FR Y-14Q.2
The FR Y-14Q (quarterly collection) revisions include (1) altering the Basel III schedule
to conform with the revisions made to the FR Y-14A Basel III Schedule (2) adding items to,
deleting other items from, and modifying several of the tables of the Trading Schedule, (3)
adding eight and modifying five items across the Wholesale Corporate Loan, Wholesale
Commercial Real Estate, Securities, and Retail Domestic and International Auto Schedules, (4)
adjusting the PPNR Schedule to conform with the changes made to the PPNR worksheets of the
FR Y-14A, and (5) adding one and remove one field on the Supplemental Schedule.

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(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. 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.
2
(78 FR 59934), published September 30, 2013

The FR Y-14M (monthly collection) will 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 Federal Reserve will also make several general changes to the FR Y-14
A/Q/M filings. The filing deadline of the FR Y-14Q will be changed to 47 calendar days after the
March 31, June 30 and September 30 as-of dates, and 52 calendar days after the December 31 asof date, effective for the December 31, 2013 report. Finally, the FR-Y 14A/Q/M instructions and
templates will 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 Federal Reserve
will also post technical instructions.
The data are used to assess the capital adequacy of large BHCs using forward-looking
projections of revenue and losses, to support supervisory stress test models and continuous
monitoring efforts, as well as to inform the Federal Reserve’s operational decision-making as it
continues to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act.
With the proposed changes outlined above, the total annual burden for FR Y-14A/Q/M is
estimated to increase by 27,312 hours to 629,824 hours.
Background and Justification
Prior to the financial crisis that emerged in 2007, many BHCs made significant
distributions of capital without due consideration of the effects that a prolonged economic
downturn could have on their capital adequacy and their ability to remain credit intermediaries
during times of economic and financial stress. In 2009, the Board conducted the Supervisory
Capital Assessment Program (SCAP), a “stress test” focused on identifying whether large,
domestic BHCs had capital sufficient to weather a more-adverse-than-anticipated economic
environment while maintaining their capacity to lend. In 2011, the Federal Reserve continued its
supervisory evaluation of the resiliency and capital adequacy processes through the
Comprehensive Capital Analysis and Review (CCAR) 2011. Through the CCAR 2011, the
Federal Reserve developed a deeper understanding of the processes by which large BHCs form
and monitor their assessments and expectations for maintaining adequate capital and the
appropriateness of their planned actions and policies for returning capital to shareholders.
On December 1, 2011, the Federal Reserve published a final rulemaking (Capital Plan
rule) in the Federal Register (76 FR 74631) that revised the Board’s Regulation Y requiring
large BHCs to submit capital plans to the Federal Reserve annually and to require such BHCs to
request prior approval from the Federal Reserve under certain circumstances before making a
capital distribution. In connection with submissions of capital plans to the Federal Reserve,
BHCs are required, pursuant to 12 CFR 225.8(d)(3), to provide certain data to the Federal
Reserve.
On October 12, 2012, the Federal Reserve published two final rules in the Federal
Register (77 FR 62409) with stress testing requirements for certain bank holding companies,
state member banks, and savings and loan holding companies. The final rules implement sections
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165(i)(1) and (i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Section 165(i)(1) of the Dodd-Frank Act requires the Board to conduct an annual stress test of
each covered company3 to evaluate whether the covered company has sufficient capital, on a
total consolidated basis, to absorb losses as a result of adverse economic conditions (supervisory
stress tests). Section 165 (i)(2) requires the Board to issue regulations that require covered
companies to conduct stress tests semi-annually and require financial companies with total
consolidated assets of more than $10 billion that are not covered companies and for which the
Federal Reserve is the primary federal financial regulatory agency to conduct stress tests on an
annual basis (collectively, company-run stress tests).
Description of Information Collection
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 CCAR exercise is also
complemented by other Federal Reserve supervisory efforts aimed at enhancing the continued
viability of large BHCs, including (1) continuous monitoring of BHCs’ planning and
management of liquidity and funding resources and (2) 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.
Respondent BHCs are currently required to complete and submit up to 18 filings each
year: two semi-annual FR Y-14A filings, four quarterly FR Y-14Q filings, and 12 monthly FR
Y-14M filings.4 Compliance with the information collection is mandatory.
Current FR Y-14A (semi-annual collection)
The semi-annual collection of BHCs quantitative projected regulatory capital ratios
across various macroeconomic scenarios comprises six primary schedules (Summary, Macro
Scenario, CCR, Basel III/Dodd-Frank, Regulatory Capital Instruments, and Operational Risk
schedules), each with multiple supporting worksheets.5
Except for the annual Basel III/Dodd-Frank schedule, which collects annual forecast data,
and the Operational Risk schedule, all other FR Y‐14A schedules collect quarterly results and
projections. BHCs must complete each FR Y‐14A schedule for each scenario, and they must
include:
3

See 12 U.S.C. 5365(a). A ‘‘covered company’’ includes any bank holding company with total consolidated assets
of $50 billion or more and each nonbank financial company that the Council has designated for supervision by the
Federal Reserve.
4
The most current reporting templates for the FR Y-14A/Q/M are available at:
www.federalreserve.gov/apps/reportforms/default.aspx
5
The “mid-cycle” FR Y-14A, which is due to the Federal Reserve on or before July 5, is limited to two schedules:
the Summary and Macro Scenario schedules.

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
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current and projected balances for balance sheet and off‐balance‐sheet positions and
exposures for a number of identified categories under each scenario;
reconciliation that clearly demonstrates that all balances have been accounted for in the
analysis, or demonstration that the current balances for each category tie to the
corresponding category on the Consolidated Financial Statements for Bank Holding
Companies (FR Y-9C; OMB No. 7100-0128);
estimates of losses as specified in each schedule;
potential losses or exposures not captured in other data items, and a description of the
source of the losses; and
estimates of resources available to absorb losses, including PPNR, the Allowance for
Loan and Lease Losses (ALLL), and capital.

BHCs are also required to submit qualitative information supporting their projections,
including descriptions of the methodologies used to develop the internal projections of capital
across scenarios and other analyses that support their comprehensive capital plans.
Current FR Y-14Q (quarterly collection)
Data submitted on FR Y‐14Q schedules (Securities Risk, Retail Risk, PPNR, Wholesale
Risk, Trading Risk, Basel III/Dodd-Frank, Regulatory Capital Instruments, Fair Value
Option/Held for Sale, Mortgage Servicing Rights, Operational Risk, and Supplemental
schedules) collect BHC‐specific data on positions and exposures that are used as input to
supervisory stress test models and to monitor actual versus forecast information on a quarterly
basis.
Current FR Y-14M (monthly collection)
Beginning with the June 2012 as-of date, the Federal Reserve increased the reporting
frequency for three retail portfolios from quarterly to monthly: two portfolio and loan-level
collections for First Lien Closed-End 1-4 Family Residential Loan data and Home Equity Loan
and Home Equity Line data and one account- and portfolio-level collection for Domestic Credit
Card data Collection Data Dictionary.6 In order to match senior and junior lien residential
mortgages on the same collateral, the Address Matching Loan Level Data Collection gathers
additional information on the residential mortgage loans reported in the First Lien Closed-End 14 Family Residential Loan and Home Equity Loan and Home Equity Line collections.
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 FR Y-9C, and (5) improve the scope of
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In the case of the credit card portfolio, the collection gathers account data instead of loan data.

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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 proposed 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 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 notices7 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 toptier 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 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
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(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.

5

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 risk-based capital under the general risk-based
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 deferredtax 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 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.
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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 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 mortgage-backed 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

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

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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 the stress testing process. A summary of the proposed changes by
Schedule is provided below.
Domestic First Lien Closed-end 1-4 Family Residential Loan Schedule
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 approved by the Board on March 22,
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.
Respondent Panel
The respondent panel consists of any top-tier BHC (other than a foreign banking
organization), that has $50 billion or more in total consolidated assets, as determined based on:
(i) the average of the BHC's total consolidated assets in the four most recent quarters as reported
quarterly on the BHC's FR Y-9C; or (ii) the average of the BHC's total consolidated assets in the
most recent consecutive quarters as reported quarterly on the BHC's FR Y-9Cs, if the BHC has
not filed an FR Y-9C for each of the most recent four quarters. Reporting is required as of the
first day of the quarter immediately following the quarter in which it meets this asset threshold,
unless otherwise directed by the Federal Reserve.

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Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.
Consultation Outside the Agency
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 proposed revisions to 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 addressing the
proposed changes to this information collection: 12 from BHCs, 3 from trade associations, and 2
from private companies. No comments specifically addressed the burden estimates. 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. All substantive comments are summarized and addressed in the final Federal
Register notice and additional modifications to the reporting forms and instructions were made
as necessary.
On September 30, 2013, the Federal Reserve published a final notice in the Federal
Register (78 FR 59934) implementing the revisions largely as proposed and extending the public
comment period for 60 days seeking additional comments regarding FR Y-14Q/M credit scorerelated items. This comment period expired on November 29, 2013. The Federal Reserve will
address reporting of credit score-related items in a separate notice.
Legal Status
The Board’s Legal Division has determined that this mandatory information collection is
authorized by section 165 of the Dodd-Frank Act, which requires the Board to ensure that certain
BHCs and nonbank financial companies supervised by the Board are subject to enhanced riskbased 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 Bank Holding Company 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 case-by-case basis.
Time Schedule for Information Collection and Publication
The following tables outline by schedules and worksheets the as-of dates for data and the
due date for submissions to the Federal Reserve by reporting frequency.

12

Risk Factor
Schedules and Sub-Worksheets

Submission due
to Federal Reserve

Data as-of-date
FR Y-14A (Semi-Annual Filings)

Macro Scenario schedule &
Summary schedule
 Balance Sheet
 Income Statement
 Capital and Risk-Weighted
Assets
 Retail Risk
 Operational Risk
 Securities Risk
 PPNR




Data as-of September
30th.
Data as-of March 31st.




Data are due January 5th of
the following year.
Data are due July 5th of the
same year.

FR Y-14A (Annual Filings)
Basel III/Dodd-Frank schedule,
Regulatory Capital Instruments,
and Operational Risk schedule

CCAR Market Shock exercise
Summary schedule
 Trading Risk
 CCR
CCR Annual schedule



Data as-of September
30th.

Data as-of a specified date in
the fourth quarter. As-ofdate communicated during
the 4th quarter after it had
occurred.
For any BHC that is required
to resubmit a capital plan
including the market shock
exercise, the as-of date will
be the same as the as-of date
for the Trading Risk
schedule.

13



Data are due January 5th of
the following year.

Data are due January 5th of the
following year.
For any BHC that is required to
resubmit a capital plan that
would include the market shock
exercise, the due date will be the
same as the due date for the
Trading Risk Schedule.

Risk Factor
Schedules and Sub-Worksheets

Data as-of-date

Submission due
to Federal Reserve

FR Y-14Q (Quarterly Filings)
Securities Risk schedule
PPNR schedule
Retail Risk schedule
Wholesale Risk schedule
Operational Risk schedule
MSR Valuation schedule
Supplemental schedule
Retail FVO/HFS schedule
Regulatory Capital Transitions
schedule
Regulatory Capital Instruments
schedule

Data as-of each calendar
quarter end.

Due to the CCAR Market
Shock exercise, the as-of-date
for the third quarter would be
communicated in the
subsequent quarter.

Trading Risk schedule

For all other quarters, the asof date would be the last day
of the quarter, except for
BHCs that are required to resubmit their capital plan.
For these BHCs, the as-of
date for the quarter preceding
the quarter in which they are
required to re-submit a capital
plan would be communicated
to the BHCs during the
subsequent quarter.

Seven days after the FR Y-9C
reporting schedule: Reported data
(47 calendar days after the
calendar quarter-end for March,
June, and September and 52
calendar days after the calendar
quarter-end for December)

The data would be due 47
calendar days after the
notification date (notifying
respondents of the as-of-date)
or, for the 3rd quarter data,
December 15, whichever
comes earlier. BHCs may
provide these data as-of the
most recent date that
corresponds to their weekly
internal risk reporting cycle as
long as it falls before the as-ofdate.
In addition, for BHCs that are
required to re-submit a capital
plan, the due date for the
quarter pre-ceding the quarter
in which the BHCs are required
to re-submit a capital plan
would be the later of (1) the
normal due date or (2) the date
that the re-submitted capital
plan is due, including any
extensions.

FR Y-14M (Monthly Filings)
All monthly Retail Risk schedules

Data as-of the last business
day of each calendar month.

Reported data is to be submitted
by the 30th calendar day after the
last business day as-of the
preceding calendar month.

Estimate of Cost to the Federal Reserve System
The cost to the Federal Reserve System for the on-going maintenance of the information
collection is estimated to be $5,580,000.
14

Estimate of Respondent Burden
The current total annual burden for the annual, quarterly, and monthly reporting
requirements of this information collection is estimated to be 681,712 hours and with the
proposed revisions would decrease by 51,888 hours, for a total of 629,824 hours, including 9,120
hours of automation burden. This net decrease is due to adjustment of start-up respondent
burden, offset by an increase in burden primarily due to the proposed changes to the FR Y-14A
and FR Y-14Q, which would be revised to conform with capital rulemakings; the addition of a
worksheet on the Counterparty schedule of the FR Y-14A; and the expansion in scope of data
collected on the PPNR and Trading Risk schedules of the FR Y-14Q. The proposed annual
burden for the FR Y-14A/Q/M would represent approximately 5 percent of total Federal Reserve
System paperwork burden.
FR Y-14A Burden
The current total annual burden hours for the FR Y-14A is estimated to be 55,512 hours
and with the proposed revisions would increase by 11,808 hours for a total of 67,320 hours. The
increase is due to the proposed changes to the Summary and Basel III schedules in accordance
with proposed capital rulemakings. In addition, the expansion of the collection of PPNR
information on the PPNR schedule, and addition of worksheets to the Counterparty Schedule
also contributed to the net increase in burden.
FR Y-14Q Burden
The current total annual burden hours for the FR Y-14Q is estimated to be 146,200 hours
and with the proposed revisions would increase by 15,504 hours for a total of 161,704 hours.
The increase is due to the proposed changes to the Basel III and PPNR schedules to conform
with the revisions made to the FR Y-14A schedules as noted above, and the addition and
modification of items on the Trading schedule.
FR Y-14M Burden
The Federal Reserve estimates that, on average, respondents would take approximately
510 hours monthly to complete the FR Y-14M. Due to the slight reduction in burden from the
deletion of items and offsetting minimal increase from the modification of existing items, no
change in the estimated average hours per response. The total burden for the BHCs that complete
the monthly First Lien Closed-End Residential Mortgage collection is estimated to be 153,000
hours. The total burden for the BHCs that complete the monthly Domestic Home Equity
Residential Mortgage collection is estimated to be 146,880 hours. The total burden for the
BHCs that complete the monthly Credit Card collection is estimated to be 91,800 hours. The
current total burden for the FR Y-14M collections is estimated to be 391,680 hours.
On-Going Automation Burden
In an effort to more accurately reflect the burden imposed on the BHCs for reporting the
FR Y-14 data, the Federal Reserve has included estimates for annual on-going automation
burden (for existing respondents). The Federal Reserve estimates the burden for each existing
15

respondent BHC that would update their systems in order to complete the FR Y-14 submissions
would vary across BHCs. On average it would take approximately 480 hours (on-going
maintenance) to update systems for submitting the data, for a total of 9,120 hours.
The current total annual cost to the public for the FR Y-14 information collection is estimated
to be $34,017,429 and would decrease by $2,689,011 to $31,328,418 for the revised FR Y-14.8

8

Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rate (30% Office & Administrative Support at $18, 45% Financial Managers at
$59, 15% Lawyers at $63, and 10% Chief Executives at $85). Hourly rate for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
2012, www.bls.gov/news.release/ocwage.nr0.htm Occupations are defined using the BLS Occupational
Classification System, www.bls.gov/soc/

16

Current FR Y-14A
Summary
Macro scenario
CCR
Basel III/Dodd-Frank
Regulatory capital instruments
FR Y-14A total
Current FR Y-14Q
Securities risk
Retail risk
PPNR
Wholesale risk
 Corporate loans
 CRE
Trading risk
Basel III/Dodd-Frank
Regulatory capital instruments
Operational risk
MSR Valuation
Supplemental
Retail FVO/HFS
FR Y-14Q total
Current FR Y-14M
Retail risk
 1st lien mortgage
 Home equity
 Credit card
FR Y-14M total
Implementation and On-going
Automation
Start-up – new respondents
On-going revisions
Current automation total
Collection total

Estimated
average
hours per
response

Estimated
annual
burden
hours

Number
of
respondents9

Annual
frequency

30
30
6
30
30

2
2
1
1
1

836
31
382
20
20

50,160
1,860
2,292
600
600
55,512

30
30
30

4
4
4

10
16
625

1,200
1,920
75,000

28
27

4
4

60
60

6
30
30
30
9
30
19

4
4
4
4
4
4
4

1,720
20
40
28
24
8
16

6,720
6,480
41,280
2,400
4,800
3,360
864
960
1,216
146,200

25
24
15

12
12
12

510
510
510

153,000
146,880
91,800
391,680

11
19

1
1

9

7,200
480

79,200
9,120
88,320
681,712

Of the 30 respondents required to comply with this information collection, none are small entities as defined by the
Small Business Administration (i.e., entities with less than $500 million in total assets)
www.sba.gov/contractingopportunities/officials/size/table/index.html.

17

Number
of

Annual
frequency

respondents10
Proposed FR Y-14A
Summary
Macro scenario
CCR
Basel III/Dodd-Frank
Regulatory capital instruments
Proposed FR Y-14A total
Proposed FR Y-14Q
Securities risk
Retail risk
PPNR
Wholesale risk
 Corporate loans
 CRE
Trading risk
Basel III/Dodd-Frank
Regulatory capital instruments
Operational risk
MSR Valuation
Supplemental
Retail FVO/HFS
Proposed FR Y-14Q total
Proposed FR Y-14M
Retail risk
 1st lien mortgage
 Home equity
 Credit card
FR Y-14M total
On-going Automation
On-going revisions
Proposed collection total
Change Due to Adjustment in Agency
Estimate (automation start-up)
Program Change Due to Agency
Discretion

Estimated
average
hours per
response

Estimated
annual
burden hours

30
30
6
30
30

2
2
1
1
1

1,028
31
420
22
20

61,680
1,860
2,520
660
600
67,320

30
30
30

4
4
4

10
16
711

1,200
1,920
85,320

28
27

4
4

60
60

6
30
30
30
9
30
19

4
4
4
4
4
4
4

1,926
22
40
28
24
8
16

6,720
6,480
46,224
2,640
4,800
3,360
864
960
1,216
161,704

25
24
15

12
12
12

510
510
510

153,000
146,880
91,800
391,680

19

1

480

9,120
629,824
-79,200
27,312

10

Of the 30 respondents required to comply with this information collection, none are small entities as defined by
the Small Business Administration (i.e., entities with less than $500 million in total assets)
www.sba.gov/contractingopportunities/officials/size/table/index.html.

18