[Federal Register Volume 85, Number 69 (Thursday, April 9, 2020)]
[Notices]
[Pages 19944-19947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07455]
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FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Temporary approval of information collection, request for
comment.
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SUMMARY: The Board of Governors of the Federal Reserve System (Board)
has temporarily revised the Financial Statements for Holding Companies
(FR Y-9; OMB No. 7100-0128) pursuant to the authority delegated to the
Board by the Office of Management and Budget (OMB), (OMB Regulations on
Controlling Paperwork Burdens on the Public). The revisions are
applicable only to reports reflecting the March 31, 2020, as of date.
Additionally, the Board invites comment on a proposal to extend for
three years, with revision, the FR Y-9.
DATES: Comments must be submitted on or before June 8, 2020.
ADDRESSES: You may submit comments, identified by FR Y-9, by any of the
following methods:
Agency website: https://www.federalreserve.gov/. Follow
the instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Email: [email protected]. Include the OMB
number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, 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 website at
https://www.federalreserve.gov/apps/foia/proposedregs.aspx as
submitted, unless
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modified for technical reasons or to remove personally identifiable
information at the commenter's request. Accordingly, comments will not
be edited to remove any identifying or contact information. Public
comments may also be viewed electronically or in paper in Room 146,
1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. and
5:00 p.m. on weekdays. For security reasons, the Board requires that
visitors make an appointment to inspect comments. You may do so by
calling (202) 452-3684. Upon arrival, visitors will be required to
present valid government-issued photo identification and to submit to
security screening in order to inspect and photocopy comments.
Additionally, commenters may send a copy of their comments to the
Office of Management and Budget (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 Paperwork Reduction Act
(PRA) OMB submission, including the reporting form and instructions,
supporting statement, and other documentation will be placed into OMB's
public docket files, if approved. These documents will also be made
available on the Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears below.
Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of
the Chief Data Officer, Board of Governors of the Federal Reserve
System, Washington, DC 20551, (202) 452-3829.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the PRA to approve and assign OMB control numbers to
collections of information conducted or sponsored by the Board. In
exercising this delegated authority, the Board is directed to take
every reasonable step to solicit comment. In determining whether to
approve a collection of information, the Board will consider all
comments received from the public and other agencies. Pursuant to its
delegated authority, the Board may temporarily approve a revision to a
collection of information, without providing opportunity for public
comment, if the Board determines that a change in an existing
collection must be instituted quickly and that public participation in
the approval process would defeat the purpose of the collection or
substantially interfere with the Board's ability to perform its
statutory obligation.
As discussed below, the Board has made certain temporary revisions
to the FR Y-9 information collection. The Board's delegated authority
requires that the Board, after temporarily approving a collection,
publish a notice soliciting public comment. Therefore, the Board also
inviting comment on a proposal to extend the FR Y-9 information
collection for three years, with these revisions.
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Board's functions, including whether the
information has practical utility;
b. The accuracy of the Board'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 startup costs and costs of operation,
maintenance, and purchase of services to provide information.
At the end of the comment period, the comments and recommendations
received will be analyzed to determine the extent to which the Board
should modify the proposal.
Approval Under OMB Delegated Authority of the Temporary Revision of the
Following Information Collection
Report title: Financial Statements for Holding Companies.
Agency form number: FR Y-9C; FR Y-9LP; FR Y-9SP; FR Y-9ES; FR Y-
9CS.
OMB control number: 7100-0128.
Frequency: Quarterly, semiannually, and annually.
Respondents: Bank holding companies (BHCs), savings and loan
holding companies (SLHCs), securities holding companies (SHCs), and
U.S. intermediate holding companies (IHCs) (collectively, holding
companies (HCs)).\1\
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\1\ An SLHC must file one or more of the FR Y-9 family of
reports unless it is: (1) A grandfathered unitary SLHC with
primarily commercial assets and thrifts that make up less than five
percent of its consolidated assets; or (2) a SLHC that primarily
holds insurance-related assets and does not otherwise submit
financial reports with the SEC pursuant to section 13 or 15(d) of
the Securities Exchange Act of 1934.
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Estimated number of respondents:
FR Y-9C (non-advanced approaches (AA) HCs community bank leverage
ratio (CBLR)) with less than $5 billion in total assets--71, FR Y-9C
(non AA HCs CBLR) with $5 billion or more in total assets--35, FR Y-9C
(non AA HCs non-CBLR) with less than $5 billion in total assets--84, FR
Y-9C (non AA HCs non-CBLR) with $5 billion or more in total assets--
154, FR Y-9C (AA HCs)--19, FR Y-9LP--434, FR Y-9SP--3,960, FR Y-9ES--
83, FR Y-9CS--236.
Estimated average hours per response:
Reporting
FR Y-9C (non AA HCs CBLR) with less than $5 billion in total
assets--29.14, FR Y-9C (non AA HCs CBLR) with $5 billion or more in
total assets--35.11, FR Y-9C (non AA HCs non-CBLR) with less than $5
billion in total assets--40.98, FR Y-9C (non AA HCs non-CBLR) with $5
billion or more in total assets--46.95, FR Y-9C (AA HCs)--48.59, FR Y-
9LP--5.27, FR Y-9SP--5.40, FR Y-9ES--0.50, FR Y-9CS--0.50.
Recordkeeping
FR Y-9C--1, FR Y-9LP--1, FR Y-9SP--0.50, FR Y-9ES--0.50, FR Y-9CS--
0.50.
Estimated annual burden hours:
Reporting
FR Y-9C (non AA HCs CBLR) with less than $5 billion in total
assets--8,276, FR Y-9C (non AA HCs CBLR) with $5 billion or more in
total assets--4,915, FR Y-9C (non AA HCs non-CBLR) with less than $5
billion in total assets--13,769, FR Y-9C (non AA HCs non-CBLR) with $5
billion or more in total assets--28,921, FR Y-9C (AA HCs)--3,693, FR Y-
9LP--9,149, FR Y-9SP--42,768, FR Y-9ES--42, FR Y-9CS--472.
Recordkeeping
FR Y-9C--1,452, FR Y-9LP--1,736, FR Y-9SP--3,960, FR Y-9ES--42, FR
Y-9CS--472.
General description of report: The FR Y-9 family of reporting forms
continues to be the primary source of financial data on holding
companies that examiners rely on in the intervals between on-site
inspections. Financial
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data from these reporting forms are used to detect emerging financial
problems, to review performance and conduct pre-inspection analysis, to
monitor and evaluate capital adequacy, to evaluate holding company
mergers and acquisitions, and to analyze a holding company's overall
financial condition to ensure the safety and soundness of its
operations. The FR Y-9C, FR Y-9LP, and FR Y-9SP serve as standardized
financial statements for the consolidated holding company. The Board
requires HCs to provide standardized financial statements to fulfill
the Board's statutory obligation to supervise these organizations. The
FR Y-9ES is a financial statement for HCs that are Employee Stock
Ownership Plans. The Board uses the FR Y-9CS (a free-form supplement)
to collect additional information deemed to be critical and needed in
an expedited manner. HCs file the FR Y-9C on a quarterly basis, the FR
Y-9LP quarterly, the FR Y-9SP semiannually, the FR Y-9ES annually, and
the FR Y-9CS on a schedule that is determined when this supplement is
used.
Current Action: The Board has temporarily revised the instructions
to the FR-9C to allow HCs to incorporate the effects of the Money
Market Mutual Fund Liquidity Facility (MMLF) interim final rule
published on March 23, 2020, for the FR Y-9C submission reflecting the
March 31, 2020, as-of date.\2\ The revised instructions reflect the
exclusion of non-recourse exposures acquired from the MMLF from an HC's
total leverage exposure, average total consolidated assets, advanced
approaches total risk weighted assets, and standardized total risk
weighted assets, as applicable. Specifically, the revised instructions
permit eligible HCs to assign a zero percent risk weight to exposures
to the MMLF for purposes of determining the risk weighted assets and
leverage ratio. HCs would report these securities purchased from the
MMLF in either Schedule HC-R, Part II, item 2.a., ``Held-to-maturity
securities,'' or Schedule HC-R, Part II, item 2.b., ``Available-for-
sale debt securities and equity securities with readily determinable
fair values not held for trading,'' as appropriate, in both Column A
(Totals) and Column C (0 percent risk weight category).\3\ The average
of such assets purchased would be reported in Schedule HC-R, part I,
item 29, ``LESS: Other deductions from (additions to) assets for
leverage ratio purposes,'' and thus excluded from Schedule HC-R, item
30, ``Total assets for the leverage ratio.''
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\2\ See 85 FR 16232 (March 23, 2020). These revisions apply only
to respondents HCs that are BHCs (including IHCs that are BHCs);
other HCs are not eligible to participate in the MMLF.
\3\ Reporting in Schedule HC-R, Part II, only applies to non
CBLR holding companies. See 84 FR 61776 (November 13, 2019).
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The Board has determined that these temporary revisions to the FR
Y-9C must be instituted quickly and that public participation in the
approval process would defeat the purpose of the collection of
information, as delaying the revisions would result in the collection
of inaccurate information, would interfere with the Board's ability to
perform its statutory duties, and would cause public harm by preventing
HCs from utilizing the MMLF without neutralizing the effects of
exposures arising from the program on the organizations' reported risk-
based and leverage capital ratios.
Additionally, the Board proposes to extend the FR Y-9 for three
years, with the revisions discussed above, in order to permit continued
accurate reporting of capital data.
Legal authorization and confidentiality: The Board has the
authority to impose the reporting and recordkeeping requirements
associated with the FR Y-9 family of reports on BHCs pursuant to
section 5 of the Bank Holding Company Act of 1956 (BHC Act) (12 U.S.C.
1844); on SLHCs pursuant to section 10(b)(2) and (3) of the Home
Owners' Loan Act (12 U.S.C. 1467a(b)(2) and (3)), as amended by
sections 369(8) and 604(h)(2) of the Dodd-Frank Wall Street and
Consumer Protection Act (Dodd-Frank Act); on U.S. IHCs pursuant to
section 5 of the BHC Act (12 U.S.C 1844), as well as pursuant to
sections 102(a)(1) and 165 of the Dodd-Frank Act (12 U.S.C. 511(a)(1)
and 5365); and on securities holding companies pursuant to section 618
of the Dodd-Frank Act (12 U.S.C. 1850a(c)(1)(A)). The obligation to
submit the FR Y-9 series of reports, and the recordkeeping requirements
set forth in the respective instructions to each report, are mandatory.
With respect to the FR Y-9C report, Schedule HI's memoranda data
item 7(g) ``FDIC deposit insurance assessments,'' Schedule HC-P's data
item 7(a) ``Representation and warranty reserves for 1-4 family
residential mortgage loans sold to U.S. government agencies and
government sponsored agencies,'' and Schedule HC-P's data item 7(b)
``Representation and warranty reserves for 1-4 family residential
mortgage loans sold to other parties'' are considered confidential
commercial and financial information. Such treatment is appropriate
under exemption 4 of the Freedom of Information Act (FOIA) (5 U.S.C.
552(b)(4)) because these data items reflect commercial and financial
information that is both customarily and actually treated as private by
the submitter, and which the Board has previously assured submitters
will be treated as confidential. It also appears that disclosing these
data items may reveal confidential examination and supervisory
information, and in such instances, this information would also be
withheld pursuant to exemption 8 of the FOIA (5 U.S.C. 552(b)(8)),
which protects information related to the supervision or examination of
a regulated financial institution.
In addition, for both the FR Y-9C report and the FR Y-9SP report,
Schedule HC's memorandum item 2.b., the name and email address of the
external auditing firm's engagement partner, is considered confidential
commercial information and protected by exemption 4 of the FOIA (5
U.S.C. 552(b)(4)) if the identity of the engagement partner is treated
as private information by HCs. The Board has assured respondents that
this information will be treated as confidential since the collection
of this data item was proposed in 2004.
Aside from the data items described above, the remaining data items
on the FR Y-9C report and the FR Y-9SP report are generally not
accorded confidential treatment. The data items collected on FR Y-9LP,
FR Y-9ES, and FR Y-9CS reports, are also generally not accorded
confidential treatment. As provided in the Board's Rules Regarding
Availability of Information (12 CFR part 261), however, a respondent
may request confidential treatment for any data items the respondent
believes should be withheld pursuant to a FOIA exemption. The Board
will review any such request to determine if confidential treatment is
appropriate, and will inform the respondent if the request for
confidential treatment has been denied.
To the extent the instructions to the FR Y-9C, FR Y-9LP, FR Y-9SP,
and FR Y-9ES reports each respectively direct the financial institution
to retain the workpapers and related materials used in preparation of
each report, such material would only be obtained by the Board as part
of the examination or supervision of the financial institution.
Accordingly, such information is considered confidential pursuant to
exemption 8 of the FOIA (5 U.S.C. 552(b)(8)). In addition, the
workpapers and related materials may also be protected by exemption 4
of the FOIA, to the extent such financial information is treated as
confidential by the respondent (5 U.S.C. 552(b)(4)).
Consultation outside the agency: The Federal Reserve consulted with
the
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Office of the Comptroller of the Currency and the Federal Deposit
Insurance Corporation in the development of this proposal.
Board of Governors of the Federal Reserve System, April 3, 2020.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2020-07455 Filed 4-8-20; 8:45 am]
BILLING CODE 6210-01-P