Notice2022-09979
Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 10, 2022
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, without revision, the Report of Institution-to-Aggregate Granular Data on Assets and Liabilities on an Immediate Counterparty Basis (FR 2510; OMB No. 7100- 0376).
Full Text
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<title>Federal Register, Volume 87 Issue 90 (Tuesday, May 10, 2022)</title>
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[Federal Register Volume 87, Number 90 (Tuesday, May 10, 2022)]
[Notices]
[Pages 28009-28010]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-09979]
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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, without revision, the
Report of Institution-to-Aggregate Granular Data on Assets and
Liabilities on an Immediate Counterparty Basis (FR 2510; OMB No. 7100-
0376).
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, Without Revision, of the Following Information Collection
Report title: Report of Institution-to-Aggregate Granular Data on
Assets and Liabilities on an Immediate Counterparty Basis.
Agency form number: FR 2510.
OMB control number: 7100-0376.
Frequency: Quarterly.
Respondents: Any bank holding company (BHC) that is organized under
the laws of the United States or any U.S. state and that is identified
as a global systemically important bank (G-SIB) holding company under
the Board's Regulation Q.
Estimated number of respondents: 8.
Estimated average hours per response: 568.
Estimated annual burden hours: 18,176.
General description of report: The FR 2510 collects granular
exposure data on the assets, liabilities, and off-balance sheet
holdings of G-SIBs, providing breakdowns by country, instrument,
currency, maturity, sector, and other factors, and also collects
country exposure data on an immediate counterparty basis and detailed
information on firms' derivatives exposures. The information collected
by the FR 2510 supports the Board's supervision of U.S. G-SIBs by
allowing for a more complete balance sheet analysis of these firms and
allows the Board to more closely monitor the systemic impacts of such
firms' activities and investments.
Legal authorization and confidentiality: The FR 2510 is authorized
by section 5 of the Bank Holding Company Act (BHC Act). Section 5 of
the BHC Act authorizes the Board to require a bank holding company and
any subsidiary of such company to submit reports under oath to keep the
Board informed as to its financial condition, systems for monitoring
and controlling financial and operating risks, and transactions with
depository institution subsidiaries of the bank holding company.\1\ The
FR 2510 is mandatory for U.S. G-SIBs.
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\1\ 12 U.S.C. 1844(c)(1)(A).
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The information collected in the FR 2510 is collected as part of
the Board's supervisory process and is therefore considered
confidential pursuant to exemption 8 of the Freedom of Information Act
(FOIA), which protects information contained in ``examination,
operating, or condition reports'' obtained in the bank supervisory
process. In addition, individual respondents may request that
information be kept confidential pursuant to exemption 4 of the FOIA,
which protects nonpublic commercial or financial information, which is
both customarily and actually treated as private by the respondent.
Determinations of confidentiality based on exemption 4 of the FOIA
would be made on a case-by-case basis.
Current actions: On October 18, 2021, the Board published a notice
in the Federal Register (86 FR 57672) requesting public comment for 60
days on the extension, without revision, of the Report of Institution-
to-Aggregate Granular Data on Assets and Liabilities on an Immediate
Counterparty Basis. The comment period for this notice expired on
December 17, 2021. The Board received one comment.
Detailed Discussion of Public Comments
First, the commenter identified certain reporting differences
between the Country Exposure Report (FFIEC 009; OMB No. 7100-0035) and
the FR 2510 and argued that reporting of similar items between the two
reports should be more aligned in order to minimize reporting burden.
Specifically, the commenter highlighted the difference in remaining
maturity on debt securities held for trading between the FFIEC 009 and
the FR 2510. On the FFIEC 009, only a single bucket containing
maturities of one year or less is required, whereas the FR 2510
requires four maturity buckets across the entire term structure. While
the Board acknowledges the additional burden in reporting all maturity
buckets in the FR 2510, this was part of the original design of the
report and was meant to ``provide significantly more detail regarding
the balance sheet and derivatives exposures of U.S. G-SIBs.'' \2\ This
original design was part of an internationally agreed upon process to
facilitate the aggregation and analysis of consistent and comparable
data from G-SIBs globally. In addition, the FR 2510 collects a more
fulsome set of remaining maturity information to better understand the
credit market and liquidity profiles of U.S. G-SIBs, which may have
systemic implications at the individual institution level or the
aggregate level. The FFIEC 009, on the other hand, collects overall
country risk exposures for banks of all sizes and such detail is not
needed for smaller institutions.
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\2\ 83 FR 42680 (August 27, 2018).
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[[Page 28010]]
The commenter also noted that the FR 2510 instructions allow
respondents to use either the final contractual maturity or the next
repricing date, where applicable, for reporting the remaining maturity
of debt securities. In contrast, the FFIEC 009 instructions do not
offer firms this option and require the use of final contractual
maturity. The Board recognizes that on the FR 2510, firms are allowed
to report next repricing date; however, firms are not required to do
so. FR 2510 respondents are free to report remaining maturity of debt
securities data on the same basis as the FFIEC 009. Also, the option to
use final contractual maturity or next repricing date is comparable to
how remaining maturity of debt securities is reported on the
Consolidated Financial Statements for Holding Companies (FR Y-9C; OMB
No. 7100-0128), specifically on the Securities Schedule HC-B, line
items M2 and M2(a)-M2(c).
Additionally, the commenter identified an inconsistency between the
FR 2510 and the FFIEC 009 with respect to the sector utilized for the
reporting of central bank exposures. On the FR 2510, claims on central
banks are reported in the ``Unallocated'' sector, which is designated
for positions for which the sector of the counterparty is unknown or
the sector information does not need to be reported. However, the
reporting instructions to the FFIEC 009 require respondents to include
central banks in the ``Public'' sector, which includes government
departments and agencies. While the Board acknowledges that this
difference can cause issues with comparability and can be burdensome
for the reporting institutions, this distinction was intentional, as to
avoid lumping claims on central banks together with claims banks have
on governments such as sovereign bond and municipal security holdings.
Second, the commenter highlighted a concern with the inconsistency
of reporting debt securities on the FR 2510 and the FR Y-9C. The FR
2510 requires debt securities to be broken out into the following three
categories: Asset-backed securities (ABS), Other secured debt
securities, and unsecured debt securities. This segmentation is not the
same as found on the FR Y-9C, which requires respondents to break down
debt securities into the following six groupings: U.S. Treasury
securities, U.S. government agency and sponsored agency obligations,
Securities issued by states and political subdivisions in the U.S.,
Mortgage-back securities (MBS), Asset-backed securities and structured
financial products, and Other debt securities. The commenter pointed
out that this discrepancy requires firms to look through and track
features of securities that are not captured on other reports in great
detail, creating significant burden. The commenter requested that the
FR 2510 be modified to adopt the debt securities classification from
the FR Y-9C. While the Board acknowledges the burden entailed in having
two different classifications for the same debt securities, the
internationally-agreed template for G-SIBs includes a different and
less detailed breakdown than that which U.S. regulators have specified
in various regulatory reports including the FR Y-9C, which is
aggregated around several classes of securities that are idiosyncratic
to and proportionately more important in U.S. debt markets.
Finally, the commenter raised several process issues regarding
rounding differences between the data reported on the FR 2510 and the
FFIEC 009, synchronizing proposed future changes to these reports, and
providing adequate lead time for any proposed revisions to the FR
2510.\3\ With respect to the rounding differences, the Federal Reserve
regularly reviews and updates operational controls associated with
Reporting Central outside of the clearance process and will review this
recommendation accordingly. To the degree that there are future
proposed changes to the FR 2510 or the FFIEC 009, which apply to both
reports, the Board will strive to make these changes on similar
timelines and provide adequate lead time for such changes. The Board
does not plan at this time to propose changes to the FR 2510 that are
consistent with the current FFIEC 009 proposal.\4\ Those proposed
changes to the FFIEC 009 are not applicable to the FR 2510.
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\3\ Specifically, the commenter asked for a delayed effective
date of any changes made to the FR 2510. This comment is not
applicable to the current extension of the FR 2510, as no revisions
were proposed or are being adopted.
\4\ See 87 FR 3170 (January 20, 2022).
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The Board believes that the differences in reporting between the FR
2510, the FFIEC 009, and the FR Y-9C are warranted for the reasons
described above. Therefore, the Board will not adopt any revisions to
the FR 2510 as part of the extension of this collection.
Board of Governors of the Federal Reserve System, May 4, 2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-09979 Filed 5-9-22; 8:45 am]
BILLING CODE 6210-01-P
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