Regulation Y (12 CFR part 225)
requires large bank holding companies (BHCs) to submit capital
plans to the Federal Reserve on an annual basis and to require such
BHCs to request prior approval from the Federal Reserve under
certain circumstances before making a capital
distribution.
The final rule contains
requirements subject to the PRA. The collection of information
revised by this final rule is found in section 225.8 of Regulation
Y (12 CFR part 225). Section 225.8(e)(3)(vi) requires a bank
holding company to be capable of providing to the Board its loss,
revenue, and expense estimation models used by the bank holding
company for stress scenario analysis, including supporting
documentation regarding each model's development and validation
status. This information is needed by supervisors in order to
properly assess a bank holding company's capital adequacy and
capital planning processes. In this regard, the information helps
facilitate cross-firm comparisons of bank holding companies' loss,
revenue, and expense estimation models and their approaches to
model validation. The Federal Reserve estimates that, on average,
respondents would take an additional 5 hours to comply with the
requirements in section 225.8(e)(3)(vi). Section 225.8(g)(1)
removes prior approval and prior notice requirements for
distributions involving incremental issuances of instruments that
would qualify for inclusion in the numerator of regulatory capital
ratios (i.e., common equity tier 1, additional tier 1, and tier 2
capital). As mentioned in the final rule, the Federal Reserve
believes that removing the requirement would reduce unnecessary
efforts by a bank holding company to submit requests for
distributions outside of the capital plan that are associated with
issuances of regulatory capital. The Federal Reserve estimates that
respondent burden associated with section 225.8(g)(1) would be
reduced by approximately 50 percent. Section
225.8(g)(3)(iii)(A)-Net distribution limitation exceptions-To the
extent that the Board or the appropriate Reserve Bank indicates in
writing its non-objection pursuant to section 225.8(g)(5),
following a request for non-objection from the bank holding company
that includes all of the information required to be submitted under
section 225.8(g)(4). The Board estimates that, on average,
respondents would take 16 hours to comply with the requirement in
section 225.8(g)(3)(iii)(A).
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
2- Reg Y-13_CapitalPlan_R1492_20141208_omb.pdf
225.8(g)(3)(iii)(A) Exceptions