Notice2021-26598
Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB
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Published
December 8, 2021
Issuing agencies
Federal Reserve System
Abstract
The Board of Governors of the Federal Reserve System (Board) is adopting a proposal to extend for three years, with revisions, the Financial Statements for Holding Companies (FR Y-9 reports; OMB Control Number 7100-0128). The revisions are effective as of December 31, 2021.
Full Text
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<title>Federal Register, Volume 86 Issue 233 (Wednesday, December 8, 2021)</title>
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[Federal Register Volume 86, Number 233 (Wednesday, December 8, 2021)]
[Notices]
[Pages 69645-69648]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-26598]
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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.
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is adopting a proposal to extend for three years, with revisions, the
Financial Statements for Holding Companies (FR Y-9 reports; OMB Control
Number 7100-0128). The revisions are effective as of December 31, 2021.
FOR FURTHER INFORMATION CONTACT: 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.
Office of Management and Budget (OMB) Desk Officer for the Federal
Reserve Board, 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.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the Paperwork Reduction Act (PRA) to approve and assign
OMB control numbers to collections of information conducted or
sponsored by the Board. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. The OMB inventory, as well as copies of the
PRA Submission, supporting statements, and approved collection of
information instrument(s) are available at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>. These documents are also available on the Federal
Reserve Board's public website at <a href="https://www.federalreserve.gov/apps/reportforms/review.aspx">https://www.federalreserve.gov/apps/reportforms/review.aspx</a> or may be requested from the agency clearance
officer, whose name appears above.
Final Approval Under OMB Delegated Authority of the Extension for Three
Years, With 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, and FR
Y-9CS.
OMB control number: 7100-0128.
Effective Date: December 31, 2021.
Frequency: Quarterly, semiannually, and annually.
[[Page 69646]]
Respondents: Bank holding companies (BHCs), savings and loan
holding companies (SLHCs), securities holding companies, and U.S.
intermediate holding companies (IHCs) (collectively, holding
companies).\1\
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\1\ The following depository institution holding companies are
exempt: (1) A unitary savings and loan holding company with
primarily commercial assets that meets the requirements of section
10(c)(9)(c) of the Home Owners' Loan Act, for which thrifts make up
less than 5 percent of its consolidated assets; and (2) a SLHC that
primarily holds insurance-related assets and does not otherwise
submit financial reports with the Securities and Exchange Commission
pursuant to sections 13 or 15(d) of the Securities Exchange Act of
1934.
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Estimated number of respondents:
Reporting
FR Y-9C (non-advanced approaches holding companies with less than
$5 billion in total assets): 119; FR Y-9C (non-advanced approaches
holding companies with $5 billion or more in total assets): 221; FR Y-
9C (advanced approaches holding companies): 9; FR Y-9LP: 412; FR Y-9SP:
3,708; FR Y-9ES: 78; FR Y-9CS: 236.
Recordkeeping
FR Y-9C: 349; FR Y-9LP: 412; FR Y-9SP: 3,708; FR Y-9ES: 78; FR Y-
9CS: 236.
Estimated average hours per response:
Reporting
FR Y-9C (non-advanced approaches holding companies with less than
$5 billion in total assets): 35.74; FR Y-9C (non-advanced approaches
holding companies with $5 billion or more in total assets): 44.94; FR
Y-9C (advanced approaches holding companies): 50.16; FR Y-9LP: 5.27; FR
Y-9SP: 5.45; 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-advanced approaches holding companies with less than
$5 billion in total assets): 17,012; FR Y-9C (non-advanced approaches
holding companies with $5 billion or more in total assets): 39,727; FR
Y-9C (advanced approaches holding companies): 1,806; FR Y-9LP: 8,685;
FR Y-9SP: 40,417; FR Y-9ES: 39; FR Y-9CS: 472.
Recordkeeping
FR Y-9C: 1,396; FR Y-9LP: 1,648; FR Y-9SP: 3,708; FR Y-9ES: 39; 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. The Board requires holding companies to provide
standardized financial statements to fulfill the Board's statutory
obligation to supervise these organizations. 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 holding companies. The FR Y-9ES is a financial statement for
holding companies 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. Holding companies 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.
Legal authorization and confidentiality: The reporting and
recordkeeping requirements associated with the Y-9 series of reports
are authorized for BHCs pursuant to section 5 of the Bank Holding
Company Act (BHC Act); \2\ for SLHCs pursuant to section 10(b)(2) and
(3) of the Home Owners' Loan Act; \3\ for IHCs pursuant to section 5 of
the BHC Act, as well as pursuant to sections 102(a)(1) and 165 of the
Dodd-Frank Wall Street and Consumer Protection Act (Dodd-Frank Act);
\4\ and for securities holding companies pursuant to section 618 of the
Dodd-Frank Act.\5\
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\2\ 12 U.S.C. 1844.
\3\ 12 U.S.C. 1467a(b)(2) and (3).
\4\ 12 U.S.C. 5311(a)(1) and 5365; Section 165(b)(2) of Title I
of the Dodd-Frank Act, 12 U.S.C. 5365(b)(2), refers to ``foreign-
based bank holding company.'' Section 102(a)(1) of the Dodd-Frank
Act, 12 U.S.C. 5311(a)(1), defines ``bank holding company'' for
purposes of Title I of the Dodd-Frank Act to include foreign banking
organizations that are treated as bank holding companies under
section 8(a) of the International Banking Act, 12 U.S.C. 3106(a).
The Board has required, pursuant to section 165(b)(1)(B)(iv) of the
Dodd-Frank Act, 12 U.S.C. 5365(b)(1)(B)(iv), certain foreign banking
organizations subject to section 165 of the Dodd-Frank Act to form
U.S. intermediate holding companies. Accordingly, the parent
foreign-based organization of a U.S. IHC is treated as a BHC for
purposes of the BHC Act and section 165 of the Dodd-Frank Act.
Because Section 5(c) of the BHC Act authorizes the Board to require
reports from subsidiaries of BHCs, section 5(c) provides additional
authority to require U.S. IHCs to report the information contained
in the FR Y-9 series of reports.
\5\ 12 U.S.C. 1850a(c)(1)(A).
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Except for the FR Y-9CS report, which is collected on a voluntary
basis, the obligation to submit the remaining reports in the FR Y-9
series of reports and to comply with the recordkeeping requirements set
forth in the respective instructions to each of the other reports is
mandatory.
Certain information collected on the FR Y-9C and FR Y-9SP Reports
is kept confidential by the Board. The following items are kept
confidential under exemption 4 of the Freedom of Information Act (FOIA)
because these data items reflect commercial and financial information
that is both customarily and actually treated as private by the
respondent: \6\
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\6\ 12 U.S.C. 552(b)(4).
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<bullet> FR Y-9C, Schedule HI, memoranda item 7(g), ``FDIC deposit
insurance assessments;''
<bullet> FR Y-9C, Schedule HC-P, item 7(a) ``Representation and
warranty reserves for 1-4 family residential mortgage loans sold to
U.S. government agencies and government sponsored agencies;''
<bullet> FR Y-9C, Schedule HC-P, item 7(b) ``Representation and
warranty reserves for 1-4 family residential mortgage loans sold to
other parties;''
<bullet> FR Y-9C, Schedule HC-C, Part I, Memorandum items 16.a and
16.b, for eligible loan modifications under Section 4013 of the 2020
Coronavirus Aid, Relief, and Economic Security Act; and
<bullet> FR Y-9C, Schedule HC and FR Y-9SP, Schedule SC, Memoranda
item 2.b., the name and email address of the external auditing firm's
engagement partner.\7\
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\7\ The Board has assured respondents that this information will
be treated as confidential since the collection of this data item
was proposed in 2004, under the assumption that the identity of the
engagement partner is treated as private information by HCs.
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In some circumstances, disclosing these data items may also reveal
confidential examination and supervisory information protected from
disclosure under exemption 8 of the FOIA.\8\ The Board has previously
assured submitters that these data items will be treated as
confidential.
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\8\ 12 U.S.C. 552(b)(8).
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In addition, the Chief Executive Officer Contact Information
section of both the FR Y-9C and FR Y-9SP is kept confidential pursuant
to FOIA exemption 6, which applies to personnel and medical files the
disclosure of which would constitute a clearly unwarranted invasion of
personal privacy,\9\ and exemption 8,
[[Page 69647]]
which applies to information contained in or related to examination,
operating, or condition reports prepared by, on behalf of, or for the
use of an agency responsible for the regulation or supervision of
financial institutions.\10\
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\9\ 5 U.S.C. 552(b)(6).
\10\ 5 U.S.C. 552(b)(8).
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Aside from the data items described above, data collected by the FR
Y-9 reports generally are not accorded confidential treatment. As
provided in the Board's Rules Regarding Availability of
Information,\11\ 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 granted
or denied.
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\11\ 12 CFR part 261.
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To the extent that the instructions to the FR Y-9 reports 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 may be
considered confidential pursuant to exemption 8 of the FOIA.\12\ In
addition, the workpapers and related materials may also be protected by
exemption 4 of the FOIA, to the extent such financial information is
customarily and actually treated as private by the respondent.\13\
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\12\ 5 U.S.C. 552(b)(8).
\13\ 5 U.S.C. 552(b)(4).
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Current actions: On September 8, 2021, the Board published a notice
in the Federal Register (86 FR 50354) requesting public comment for 60
days on the extension for three years of the Financial Statements for
Holding Companies (FR Y-9 Reports), with revision.
Proposed Revisions
Chief Executive Officer Contact Information
The Federal Reserve periodically needs to communicate directly with
the CEOs of holding companies via email; however, the Federal Reserve
currently does not have a complete list of CEO email addresses. To
streamline communications to CEOs, the Board proposed to collect the
name, email address, and phone number of the holding company's CEO on
the FR Y-9C and FR Y-9SP reports. CEO communications would be initiated
or approved by the Board's senior management and would involve topics
such as new initiatives and policy notifications.
The proposed CEO contact information would have been for the
confidential use of the Federal Reserve and would not have been
released to the public. In the proposal, the Board stated that it would
use the collected CEO email addresses and phone numbers judiciously and
only for significant matters requiring CEO-level attention. Having a
comprehensive database of holding companies' CEO contact information,
including email addresses and phone numbers, would allow the Federal
Reserve to have current information to communicate important and time-
sensitive information to CEOs. This information was proposed to be
collected quarterly on the FR Y-9C report for consistency with the Call
Report and semiannually on the FR Y-9SP report. The information would
have been collected from top tier holding companies only.
Full-Time Employees
Consistent with the Interagency Policy Statement Establishing Joint
Standards for Assessing the Diversity Policies of Entities Regulated by
the Agencies,\14\ which was issued as required by section 342 of the
Dodd-Frank Act, the Board's Office of Minority and Women Inclusion
(OMWI) conducts an annual survey of entities the Board regulates. In
this voluntary survey, the Board collects a self-assessment report on
diversity policies and practices from Board-regulated entities with 100
or more full-time equivalent employees.
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\14\ See 80 FR 33016 (June 10, 2015). Agencies include the
Office of the Comptroller of the Currency (OCC); Board; Federal
Deposit Insurance Corporation (FDIC); National Credit Union
Administration (NCUA); Consumer Financial Protection Bureau (CFPB);
and Securities and Exchange Commission (SEC).
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Currently, to identify those entities that should be invited to
participate in the survey, the Board's OMWI relies on the FR Y-9C and
Call Report, which collect data on the number of full-time equivalent
employees for the consolidated entity. Because these data are not
collected on the parent-only FR Y-9SP or the nonbank subsidiary
reports,\15\ the Board cannot accurately identify the FR Y-9SP
reporters with 100 or more full-time equivalent employees on a
consolidated basis that should be invited to participate in this
survey.
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\15\ The nonbank subsidiary reports include the Financial
Statements of Foreign Subsidiaries of U.S. Banking Organizations (FR
2314/2314S), Financial Statements of U.S. Nonbank Subsidiaries held
by Foreign Banking Organizations (FR Y-7N/7NS/7Q), and Financial
Statements of U.S. Nonbank Subsidiaries of U.S. Holding Companies
(FR Y-11/11S).
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Therefore, the Board proposed to add a new check box, Memorandum
item 5, ``Does your holding company have 100 or more full-time
equivalent employees on a consolidated basis?'' to Schedule SI, Income
Statement of the FR Y-9SP report. The addition of this item on the FR
Y-9SP would enable OMWI to have a comprehensive list of the Board-
regulated holding companies with full-time equivalent employees of 100
or more on a consolidated basis. The proposed data item would have been
collected only from top-tier holding companies and would have been
collected only on the report for the December 31 as-of date. Given that
the additional information to be reported should be easily obtainable,
the Board expects that this revision would cause a small burden
increase for reporters.
Brokered Deposits Glossary Entries
The FR Y-9C instructions Glossary defines ``Brokered Deposits'' and
``Brokered Retail Deposits'' consistent with section 29(g) of the
Federal Deposit Insurance Act (FDI Act) and the FDIC's brokered
deposits regulation.\16\ Under these definitions, the meaning of the
term ``brokered deposit'' references the defined term ``deposit
broker.'' On January 22, 2021, the FDIC published in the Federal
Register a final rule to amend its brokered deposits regulation
(brokered deposits final rule),\17\ which established a new framework
for analyzing certain provisions of the ``deposit broker'' definition
in the FDI Act.\18\ The brokered deposits final rule clarified the term
``deposit broker'' and the analysis of whether entities are engaged in
the business of placing, or facilitating the placement of, deposits.
The revised FDIC regulation describes exceptions to the definition of
``deposit broker'' including when the primary purpose of an agent's or
nominee's business relationship with its customers is not the placement
of funds with depository institutions (primary purpose exception). The
brokered deposits final rule introduced in the FDIC's regulation a list
of business relationships that are designated as meeting the primary
purpose exception. In February 2021, the Federal Financial Institutions
Examination Council proposed changes to the Call Reports forms and
instructions consistent with the brokered deposits final rule and
[[Page 69648]]
proposed conforming clarifications in the Call Reports Glossary.
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\16\ 12 CFR 337.6.
\17\ 86 FR 6742 (Jan. 22, 2021).
\18\ 12 U.S.C. 1831f(g).
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To provide clarity for respondents, the Board proposed to revise
the FR Y-9C Glossary instructions to incorporate changes under the
brokered deposits final rule consistent with the proposed Call Report
revisions. Specifically, the Board proposed to reorder the content of
the Glossary entries for ``Brokered Deposits'' and ``Brokered Retail
Deposits,'' to incorporate the revised content of the FDIC regulation,
and to update reference to the FDIC insurance limit of $250,000. The
Board did not propose otherwise to revise the FR Y-9C form or
instructions in respect to brokered deposits.
SA-CCR Check Box
On January 24, 2020, the agencies issued a final rule \19\ (SA-CCR
final rule) that amends the regulatory capital rule to implement a new
approach for calculating the exposure amount for derivatives contracts
for purposes of calculating the total risk-weighted assets (RWA), which
is called SA-CCR. The final rule also incorporates SA-CCR into the
determination of the exposure amounts of derivatives for total leverage
exposure under the supplementary leverage ratio and the cleared
transaction framework under the capital rule.
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\19\ See 85 FR 4362 (January 24, 2021).
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Holding companies that are not advanced approaches banking
organizations \20\ may elect to use SA-CCR to calculate standardized
total RWA by notifying the Board.\21\ Advanced approaches holding
companies are required to use SA-CCR to calculate standardized total
RWA starting on January 1, 2022. Advanced approaches holding companies
may adopt SA-CCR prior to January 1, 2022, but must notify the Board of
their early adoption.\22\
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\20\ See 12 CFR 217.2 (defining ``Advanced approaches Board-
regulated institution'').
\21\ 12 CFR 217.34(a)(1)(ii).
\22\ 12 CRF 217.300(h).
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The Board proposed to revise the FR Y-9C forms and instructions by
adding new line item 31.b, ``Standardized Approach for Counterparty
Credit Risk opt-in election.'' The Board proposed to add this new item
to identify holding companies that have chosen to early adopt or
voluntarily elect SA-CCR, which would allow for enhanced comparability
of the reported derivative data and for better supervision of the
implementation of the framework at these holding companies. Due to the
inherent complexity of adopting SA-CCR, identification of non-advanced
approaches institutions that choose to voluntarily adopt SA-CCR is
particularly important for their supervision.
Under the proposal, a non-advanced approaches holding company that
adopts SA-CCR would have entered ``1'' for ``Yes'' in line item 31.b.
All other non-advanced approaches holding companies would have left
this item blank. If a non-advanced approaches holding company has
elected to use SA-CCR, the holding company may change its election only
with prior approval of the Board.\23\ An advanced approaches holding
company that elects to early adopt SA-CCR prior to the January 1, 2022,
mandatory compliance date would have entered ``1'' for ``Yes'' in line
item 31.b. After January 1, 2022, an advanced approaches holding
company would have left this item blank. This proposed reporting change
would have taken effect starting with the December 31, 2021, FR Y-9C
report. This item would have no longer been applicable to advanced
approaches holding companies starting with the March 31, 2022, report
date. There would have been no material change in burden to the FR Y-9C
report related to this revision.
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\23\ 12 CFR 217.34(a)(1)(ii).
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The comment period for this notice expired on Monday, November 8,
2021. The Board did not receive any comments. The revisions will be
implemented as proposed.
A comment was received on a comparable proposal involving the
Consolidated Reports of Condition and Income (Call Report) (FFIEC 031,
FFIEC 041and FFIEC 051; OMB Control Number 7100-0036). The comment was
generally supportive of the proposed new line item related to the SA-
CCR final rule. The Board has taken the comments from the proposed
changes to the Call Report into consideration in finalizing the
proposed FR Y-9C changes and the Board intends to add the new item for
SA-CCR, as proposed.
Board of Governors of the Federal Reserve System, December 3,
2021.
Ann Misback,
Secretary of the Board.
[FR Doc. 2021-26598 Filed 12-7-21; 8:45 am]
BILLING CODE 6210-01-P
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