[Federal Register Volume 85, Number 62 (Tuesday, March 31, 2020)]
[Notices]
[Pages 17888-17890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06751]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Temporary approval of information collection.
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SUMMARY: The Board of Governors of the Federal Reserve System (Board)
has temporarily revised the Financial Statements for Holding Companies
pursuant to the authority delegated to the Board by the Office of
Management and Budget (OMB). The revisions are applicable only to
reports reflecting the March 31, 2020, as of date.
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 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.
The Board's delegated authority requires that the Board, after
temporarily approving a collection, solicit public comment on a
proposal to extend the temporary collection for a period not to exceed
three years. However, as discussed below, the Board does not intend to
solicit comment on such a proposal with respect to these temporary
revisions, as the Board, after soliciting comment, has separately
approved identical revisions that would apply to reports subsequent to
those affected by the temporary revisions.
Final 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.
Effective date: March 31, 2020.
Frequency: Quarterly, semiannually, and annually.
Affected public: Businesses or other for-profit.
Respondents: Bank holding companies (BHCs), savings and loan
holding companies (SLHCs),\1\ securities holding companies (SHCs), and
U.S. intermediate holding companies (IHCs) (collectively, holding
companies (HCs)).
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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 5
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:
[[Page 17889]]
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 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 voluntary 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 actions: The Board has temporarily revised the instructions
for the FR Y-9C to permit banking organizations to report data in a
manner consistent with the final rule titled Standardized Approach for
Calculating the Exposure Amount of Derivative Contracts (SA-CCR rule)
\2\ beginning with the FR Y-9C report as of March 31, 2020, rather than
the report as of June 30, 2020, as separately approved by the Board.
For the FR Y-9C report as of March 31, 2020, respondents may report
data affected by the SA-CCR rule on a best efforts basis. Because the
temporary revision applies only to reports as of March 31, 2020, and
because the Board, after soliciting public comment, has separately
approved SA-CCR-related revisions to the FR Y-9C beginning with reports
as of June 30, 2020, the Board believes that further public comment
would not serve any regulatory purpose.
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\2\ See 85 FR 4362 (January 24, 2020).
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The Board has determined that this revision 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 and would interfere with the Board's ability to perform its
statutory duties.
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)); 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 Wall Street and Consumer
Protection Act (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, except for the
FR Y-9CS, which is voluntary.
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
[[Page 17890]]
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)).
Board of Governors of the Federal Reserve System.
Ann Misback,
Secretary of the Board.
[FR Doc. 2020-06751 Filed 3-30-20; 8:45 am]
BILLING CODE 6210-01-P