Notice2022-24028
Proposed Agency Information Collection Activities; Comment Request
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
November 4, 2022
Issuing agencies
Federal Reserve System
Abstract
The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, with revision, the Reporting, Recordkeeping, and Disclosure Requirements Associated with Regulation Q (FR Q; OMB No. 7100-0313).
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 213 (Friday, November 4, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 213 (Friday, November 4, 2022)]
[Notices]
[Pages 66701-66704]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-24028]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice, request for comment.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
invites comment on a proposal to extend for three years, with revision,
the Reporting, Recordkeeping, and Disclosure Requirements Associated
with Regulation Q (FR Q; OMB No. 7100-0313).
DATES: Comments must be submitted on or before January 3, 2023.
[[Page 66702]]
ADDRESSES: You may submit comments, identified by FR Q, by any of the
following methods:
<bullet> Agency Website: <a href="https://www.federalreserve.gov/">https://www.federalreserve.gov/</a>. Follow
the instructions for submitting comments at <a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#cdbfa8aabee3aea2a0a0a8a3b9be8daba8a9a8bfaca1bfa8bea8bfbba8e3aaa2bb"><span class="__cf_email__" data-cfemail="89fbeceefaa7eae6e4e4ece7fdfac9efecedecfbe8e5fbecfaecfbffeca7eee6ff">[email protected]</span></a>. Include the OMB
number or FR number in the subject line of the message.
<bullet> Fax: (202) 452-3819 or (202) 452-3102.
<bullet> Mail: Federal Reserve Board of Governors, Attn: Ann E.
Misback, Secretary of the Board, Mailstop M-4775, 2001 C St. NW,
Washington, DC 20551.
All public comments are available from the Board's website at
<a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a> as
submitted, unless modified for technical reasons or to remove
personally identifiable information at the commenter's request.
Accordingly, comments will not be edited to remove any confidential
business information, identifying information, or contact information.
Public comments may also be viewed electronically or in paper in Room
M-4365A, 2001 C St. NW, Washington, DC 20551, 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 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.
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, <a href="/cdn-cgi/l/email-protection#f8968d9099d69d9495999f908a999a91b89e8a9ad69f978e"><span class="__cf_email__" data-cfemail="86e8f3eee7a8e3eaebe7e1eef4e7e4efc6e0f4e4a8e1e9f0">[email protected]</span></a>, (202)
452-3884.
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. 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.
During the comment period for this proposal, a copy of the proposed
PRA OMB submission, including the draft reporting form and
instructions, supporting statement, and other documentation, will be
made available on the 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
versions of these documents will be made available at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>, if approved.
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.
Proposal Under OMB Delegated Authority To Extend for Three Years, With
Revision, the Following Information Collection
Collection title: Reporting, Recordkeeping, and Disclosure
Requirements Associated with Regulation Q.
Collection identifier: FR Q.
OMB control number: 7100-0313.
Frequency: Annual, quarterly.
Respondents: State member banks (SMBs), certain bank holding
companies (BHCs), U.S. intermediate holding companies (IHCs), and
certain covered savings and loan holding companies (SLHCs) \1\
(collectively, Board-regulated institutions).
---------------------------------------------------------------------------
\1\ The Board's capital rule generally does not apply to BHCs or
covered SLHCs that meet the requirements of the Small Bank Holding
Company and Savings and Loan Holding Company Policy Statement, 12
CFR part 225, Appendix C. For the definition of ``Covered savings
and loan holding company,'' see 12 CFR 217.2.
---------------------------------------------------------------------------
Estimated number of respondents:
Minimum Capital Ratios
Recordkeeping (Ongoing)--1,055.
Standardized Approach
Reporting (Ongoing)--1.
Recordkeeping (Initial Setup)--1.
Recordkeeping (Ongoing)--1,055.
Disclosure (Initial Setup)--1.
Disclosure (Ongoing)--38.
Advanced Approach
Reporting (Initial Setup)--1.
Reporting (Ongoing)--21.
Recordkeeping (Initial Setup)--1.
Recordkeeping (Ongoing)--21.
Recordkeeping (Ongoing quarterly)--21.
Disclosure (Initial setup)--1.
Disclosure (Ongoing)--21.
Disclosure (Ongoing quarterly)--21.
Disclosure (Ongoing quarterly Table 13)--27.
Estimated average hours per response:
Minimum Capital Ratios
Recordkeeping (Ongoing)--16.
Standardized Approach
Reporting (Ongoing)--1.
Recordkeeping (Initial Setup)--122.
Recordkeeping (Ongoing)--20.
Disclosure (Initial Setup)--226.25.
Disclosure (Ongoing)--131.25.
Advanced Approach
Reporting (Initial Setup)--161.
Reporting (Ongoing)--111.77.
Recordkeeping (Initial Setup)--299.
Recordkeeping (Ongoing)--429.
Recordkeeping (Ongoing quarterly)--20.
Disclosure (Initial setup)--328.
Disclosure (Ongoing)--5.78.
Disclosure (Ongoing quarterly)--41.5.
Disclosure (Ongoing quarterly Table 13)--5.
Estimated annual burden hours: Initial setup--1,136; Ongoing--
75,114.
General description of collection: The Board's Regulation Q--
Capital Adequacy of Bank Holding Companies, Savings and Loan Holding
Companies, and State Member Banks (12 CFR part 217) sets forth the
capital adequacy requirements for Board-regulated institutions.
The reporting, recordkeeping, and disclosure requirements included
in the FR Q information collection provide the
[[Page 66703]]
Board and other stakeholders, including market participants, with
information regarding the interaction between firms and the regulatory
capital framework. Specifically, the reporting and recordkeeping
requirements allow the Board to verify that firms are appropriately
implementing the capital framework; they also provide the Board with
information necessary for monitoring firms participating in the
advanced approaches framework. The disclosure requirements are intended
to support market discipline by providing information regarding banking
organizations' activities, overall risk profiles, and risk management
policies. Together, these requirements help to ensure the safety and
soundness of the financial system by facilitating the identification of
problems at firms and ensuring that firms have implemented any
corrective actions imposed by the Board, as well as by allowing
stakeholders to make meaningful assessments of firms' financial
position.
Proposed revisions: The Board proposes to revise the FR Q
information collection to account for a reporting provision in section
217.37(c)(4)(i)(E) of Regulation Q and a disclosure provision in
section 217.124(a) of Regulation Q, which have not been previously
cleared by the Board under the PRA.
Section 217.37 of Regulation Q relates to when a Board-regulated
institution may recognize the credit risk mitigation benefits of
financial collateral that secures a transaction. With the prior written
approval of the Board, a Board-regulated institution may calculate
haircuts using its own internal estimates of the volatilities of market
prices and foreign exchange rates. A Board-regulated institution must
have policies and procedures that describe how it determines the period
of significant financial stress used to calculate the Board-regulated
institution's own internal estimates for haircuts under this section
and must be able to provide empirical support for the period used.
Section 217.37(c)(4)(i)(E) requires Board-regulated institutions to
obtain the prior approval of the Board for, and notify the Board if the
Board-regulated institution makes any material changes to, these
policies and procedures.
Subpart E of Regulation Q requires a Board-regulated institution to
have a rigorous process for assessing its overall capital adequacy in
relation to its risk profile and a comprehensive strategy for
maintaining an appropriate level of capital. Section 217.124(a) permits
a Board-regulated institution that merges with or acquires a company
that does not calculate its risk-based capital requirements using
advanced systems to use a standardized approach to determine the risk-
weighted asset amounts for the merged or acquired company's exposures.
A Board-regulated institution that takes advantage of this provision
must disclose publicly the amounts of risk-weighted assets and
qualifying capital using advance approaches for the acquiring Board-
regulated institution and standard approaches for the acquired company.
Legal authorization and confidentiality: Section 38 of the Federal
Deposit Insurance Act \2\ and section 908 of the International Lending
Supervision Act of 1983 \3\ require each appropriate Federal banking
agency to develop capital standards and to ensure that banking
institutions maintain adequate capital. The Board is the appropriate
Federal banking agency for SMBs, and thus, these provisions authorize
the FR Q with respect to SMBs.\4\ The FR Q is authorized for BHCs by
section 5(b) of the Bank Holding Company Act of 1956 (BHC Act), which
authorizes the Board to ``issue such regulations and orders, including
regulations and orders relating to the capital requirements for [BHCs],
as may be necessary to enable it to administer and carry out the
purposes of this chapter and prevent evasions thereof.'' \5\ The FR Q
is authorized for SLHCs by section 10(g) of the Home Owners' Loan Act
(HOLA), which states that ``[t]he Board is authorized to issue such
regulations and orders, including regulations and orders relating to
capital requirements for [SLHCs], as the Board deems necessary or
appropriate to enable the Board to administer and carry out the
purposes of this section, and to require compliance therewith and
prevent evasions thereof.'' \6\
---------------------------------------------------------------------------
\2\ 12 U.S.C. 1831o.
\3\ 12 U.S.C. 3907(a)(l).
\4\ 12 U.S.C. 1813(q).
\5\ 12 U.S.C. 1844(b).
\6\ 12 U.S.C. 1467a(g).
---------------------------------------------------------------------------
Section 165 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act), as amended by section 401 of the
Economic Growth, Regulatory Relief, and Consumer Protection Act,
requires the Board to establish prudential standards for nonbank
financial companies supervised by the Board, as well as certain large
BHCs supervised by the Board, that are more stringent than the
standards and requirements applicable to companies that do not present
similar risks to financial stability.\7\ These include risk-based
capital requirements and leverage limits.\8\ The Board has required,
pursuant to section 165(b)(1)(B)(iv) of the Dodd-Frank Act,\9\ certain
foreign banking organizations subject to section 165 of the Dodd-Frank
Act to form IHCs, and section 165 of the Dodd-Frank Act authorizes the
FR Q with regards to these IHCs.
---------------------------------------------------------------------------
\7\ 12 U.S.C. 5365.
\8\ 12 U.S.C. 5365(b)(1)(A)(i). See 12 U.S.C. 5371.
\9\ 12 U.S.C. 5365(b)(1)(B)(iv).
---------------------------------------------------------------------------
The reporting requirements contained in the FR Q are also
authorized by the Board's reporting authorities, which are contained in
section 9(6) of the Federal Reserve Act for SMBs,\10\ section 5(c) of
the BHC Act for BHCs and their subsidiaries,\11\ and section 10(b)(2)
of HOLA for SLHCs.\12\ Additionally, with respect to SMBs, the
reporting requirements contained in the FR Q are authorized by section
11(a) of the Federal Reserve Act, which authorizes the Board to
``require such statements and reports as it may deem necessary'' from
member banks.\13\ The information collections associated with the FR Q
are mandatory.
---------------------------------------------------------------------------
\10\ 12 U.S.C. 324.
\11\ 12 U.S.C. 1844(c).
\12\ 12 U.S.C. 1467a(b)(2).
\13\ 12 U.S.C. 248(a).
---------------------------------------------------------------------------
The disclosure requirements in Regulation Q must be made publicly
and therefore are generally not confidential. If a Board-regulated
institution described in section 217.61 of Regulation Q concludes that
specific commercial or financial information that it would otherwise be
required to disclose under sections 217.62 or 217.63 of Regulation Q
would be exempt from disclosure by the Board under the Freedom of
Information Act (FOIA),\14\ then the Board-regulated institution is not
required to disclose that specific information, but must disclose more
general information about the subject matter of the requirement,
together with the fact that, and the reason why, the specific items of
information have not been disclosed.
---------------------------------------------------------------------------
\14\ 5 U.S.C. 552.
---------------------------------------------------------------------------
The information submitted pursuant to the reporting requirements in
Regulation Q is likely to be nonpublic commercial or financial
information, which is both customarily and actually treated as private
by the respondent, and therefore eligible for confidential treatment
pursuant to exemption 4 of FOIA.\15\
---------------------------------------------------------------------------
\15\ 5 U.S.C. 552(b)(4).
---------------------------------------------------------------------------
Because the information required to be retained pursuant to the
recordkeeping requirements in Regulation Q is not routinely reported to
the Board, it would likely only come into the Board's possession
through the
[[Page 66704]]
supervisory process. Under these circumstances, information collected
under the recordkeeping requirements would be eligible for confidential
treatment pursuant to exemption 8 of FOIA, which protects 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.\16\
Additionally, information retained pursuant to these requirements may
be nonpublic commercial or financial information, which is both
customarily and actually treated as private by the respondent, and
therefore may be eligible for confidential treatment pursuant to
exemption 4 of FOIA.\17\
---------------------------------------------------------------------------
\16\ 5 U.S.C. 552(b)(8).
\17\ 5 U.S.C. 552(b)(4).
---------------------------------------------------------------------------
Consultation outside the agency: The Board worked with staff from
the Federal Deposit Insurance Corporation and Office of the Comptroller
of the Currency to confirm the burden estimates for this renewal.
Board of Governors of the Federal Reserve System, November 1,
2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-24028 Filed 11-3-22; 8:45 am]
BILLING CODE 6210-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on November 4, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.