Notice2024-26707
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
November 15, 2024
Effective
December 31, 2024
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 revison the Financial Statements for Holding Companies (FR Y-9 reports; OMB No. 7100-0128) and Consolidated Report of Condition and Income for Edge and Agreement Corporations (FR 2886b; OMB No. 7100-0086).
Full Text
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<title>Federal Register, Volume 89 Issue 221 (Friday, November 15, 2024)</title>
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[Federal Register Volume 89, Number 221 (Friday, November 15, 2024)]
[Notices]
[Pages 90284-90286]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-26707]
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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 revison the
Financial Statements for Holding Companies (FR Y-9 reports; OMB No.
7100-0128) and Consolidated Report of Condition and Income for Edge and
Agreement Corporations (FR 2886b; OMB No. 7100-0086).
DATES: The revisions are effective December 31, 2024.
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#9af4eff2fbb4fff6f7fbfdf2e8fbf8f3dafce8f8b4fdf5ec"><span class="__cf_email__" data-cfemail="ddb3a8b5bcf3b8b1b0bcbab5afbcbfb49dbbafbff3bab2ab">[email protected]</span></a>, (202)
452-3884.
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
[[Page 90285]]
(which contain more detailed information about the information
collections and burden estimates than this notice), 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/reportingforms/home/review">https://www.federalreserve.gov/apps/reportingforms/home/review</a> or may be
requested from the agency clearance officer, whose name appears above.
On the page displayed at the link above, you can find the supporting
information by referencing the collection identifiers, FR Y-9C, FR Y-
9LP, FR Y-9SP, FR Y-9ES, FR Y-9CS, and FR 2886b.
Final Approval Under OMB Delegated Authority of the Extension for Three
Years, With Revision, of the Following Information Collections
Collection title: Financial Statements for Holding Companies.
Collection identifier: FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9ES, and
FR Y-9CS.
OMB control number: 7100-0128.
General description of collection: The Board requires bank holding
companies, most savings and loan holding companies, securities holding
companies, and U.S. intermediate holding companies (collectively, HCs)
to provide standardized financial statements through one or more of the
FR Y-9 reports. The information collected on the FR Y-9 reports is
necessary for the Board to identify emerging financial risks and
monitor the safety and soundness of HC operations.
The Consolidated Financial Statements for Holding Companies (FR Y-
9C) consists of standardized financial statements for HCs similar to
the Call Reports filed by commercial banks. The FR Y-9C collects
consolidated data and is filed quarterly by top-tier HCs with total
consolidated assets of $3 billion or more.
The Parent Company Only Financial Statements for Large Holding
Companies (FR Y-9LP), must be submitted quarterly by each HC that files
the FR Y-9C, as well as by each of its subsidiary HCs. The report
consists of standardized financial statements, including the following
schedules: Income Statement, Cash Flow Statement, Balance Sheet,
Investments in Subsidiaries and Associated Companies, Memoranda, and
Notes to the Parent Company Only Financial Statements.
The Parent Company Only Financial Statements for Small Holding
Companies (FR Y-9SP), is filed semiannually by HCs with total
consolidated assets of less than $3 billion. In a banking organization
with total consolidated assets of less than $3 billion that has tiered
HCs, each HC in the organization must submit, or have the top-tier HC
submit on its behalf, a separate FR Y-9SP. This report collects basic
balance sheet and income data for the parent company, as well as data
on its intangible assets and intercompany transactions.
The Financial Statements for Employee Stock Ownership Plan Holding
Companies (FR Y-9ES) is filed annually by each employee stock ownership
plan (ESOP) that is also an HC. The report collects financial data on
the ESOP's benefit plan activities. The FR Y-9ES consists of four
schedules: Statement of Changes in Net Assets Available for Benefits,
Statement of Net Assets Available for Benefits, Memoranda, and Notes to
the Financial Statements.
The instructions to each of the FR Y-9C, FR Y-9LP, FR Y-9SP, and FR
Y-9ES state that respondent HCs should retain workpapers and other
records used in the preparation of the reports for a period of three
years following submission. In addition, HCs must maintain in their
files a manually signed and attested printout of the data submitted
under each form for a period of three years.
The Supplement to the Consolidated Financial Statements for Holding
Companies (FR Y-9CS) is a voluntary, free-form supplemental report that
the Board may utilize to collect critical additional data deemed to be
needed from HCs in an expedited manner. The FR Y-9CS data collections
are used to assess and monitor emerging issues related to HCs, and the
report is intended to supplement the other FR Y-9 reports. The data
requested by the FR Y-9CS would depend on the Board's data needs in any
given situation. For example, changes made by the Financial Accounting
Standards Board may introduce into generally accepted accounting
principles new data items that are not currently collected by the other
FR Y-9 reports. The Board could use the FR Y-9CS report to collect
these data until the items are implemented into the other FR Y-9
reports.
Frequency: Quarterly, semiannual, annual, and as needed.
Respondents: HCs.
Total estimated number of respondents:
Reporting: FR Y-9C (non-advanced approaches holding companies with
less than $5 billion in total assets): 107; FR Y-9C (non-advanced
approaches holding companies with $5 billion or more in total assets):
236; FR Y-9C (advanced approaches holding companies): 9; FR Y-9LP: 411;
FR Y-9SP: 3,596; FR Y-9ES: 73; FR Y-9CS: 236.
Recordkeeping: FR Y-9C: 352; FR Y-9LP: 411; FR Y-9SP: 3,596; FR Y-
9ES: 73; 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): 35.34; FR Y-9C (non-advanced
approaches holding companies with $5 billion or more in total assets):
44.54; FR Y-9C (advanced approaches holding companies): 49.76; 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.
Total estimated change in burden: 0.
Total estimated annual burden hours: 114,489.
Collection title: Consolidated Report of Condition and Income for
Edge and Agreement Corporations.
Collection identifier: FR 2886b.
OMB control number: 7100-0086.
General description of collection: The FR 2886b reporting form is
filed quarterly or annually by Edge and agreement corporations
(collectively, Edges or Edge corporations). The Board is responsible
for authorizing, supervising, and assigning ratings to Edges. The Board
and the Federal Reserve Banks use the data collected by the FR 2886b to
supervise Edge corporations and to monitor and develop a better
understanding of Edge activities.
Frequency: Quarterly and annually.
Respondents: Edge and agreement corporations.
Total estimated number of respondents:
Reporting: Edge and agreement corporations (quarterly): 25; Edge
and agreement corporations (annual): 7.
Recordkeeping: Edge and agreement corporations (quarterly): 25;
Edge and agreement corporations (annual): 7.
Estimated average hours per response:
Reporting: Edge and agreement corporations (quarterly): 16.47; Edge
and agreement corporations (annual): 16.57.
Recordkeeping: Edge and agreement corporations (quarterly): 12.51;
Edge and agreement corporations (annual): 11.52.
Total estimated change in burden: 96.
Total estimated annual burden hours: 1,432.
Current actions: On June 7, 2024, the Board published two separate
initial notices in the Federal Register (89 FR 48637 and 89 FR 48655)
requesting
[[Page 90286]]
public comment for 60 days on the extension, with revision, of the FR
Y-9 and FR 2886b. The comment period for both notices expired on August
6, 2024, and the Board received one comment letter. After considering
the comments received on the proposal, the Board is proceeding with the
revisions to the FR Y-9C, FR Y-9LP, and FR 2886b as proposed.
Detailed Discussion of Public Comments
1. ASU 2022-02, ``Financial Instruments-Credit Losses (Topic): Troubled
Debt Restructurings and Vintage Disclosures''
The commenter is supportive of the proposed revisions to align the
regulatory reporting of loan modifications to borrowers experiencing
financial difficulty (LMBEFD) on the FR Y-9C, FR Y-9LP, and FR 2886b in
accordance with ASU 2022-02. The commenter noted that, in any event,
the Board should not modify the proposed FR Y-9 revisions to bring the
reporting in line with the outstanding proposal on the Call Reports.\1\
The commenter urged the Board to implement ASU 2022-02 across all
regulatory reporting forms, including the Consolidated Reports of
Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC
051). The commenter stated that aligning all regulatory reports with
ASU 2022-02 would align with current practices by banking organizations
and would reduce burden by eliminating the necessity to develop and
maintain dual processes.
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\1\ See 89 FR 45046 (May 22, 2024).
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In response, the Board is proceeding with these revisions as
proposed to the FR Y-9C, FR Y-9LP, and FR 2886b. Additionally, on June
7, 2024, the Board published in the Federal Register separate initial
notices that invited comment for 60 days on the extension, with
revision, of the Financial Statements of U.S. Nonbank Subsidiaries Held
by Foreign Banking Organization (FR Y-7N),\2\ Financial Statements of
Foreign Subsidiaries of U.S. Banking Organizations (FR 2314),\3\ and
Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding
Companies (FR Y-11) to propose aligning the reporting of LMBEFD with
ASU 2022-02. Additionally, on June 21, 2024, the Board published in the
Federal Register an initial notice that invited comment for 60 days on
the extension, with revision, of the Capital Assessments and Stress
Testing Reports (FR Y-14A/Q/M),\4\ to also propose aligning the
reporting of LMBEFD with ASU 2022-02. Separate from this notice, the
Board may also finalize the FR Y-7N, FR 2314, FR Y-11, and FR Y-14A/Q/M
notices to align with ASU 2022-02, after the comment period has
expired.
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\2\ See 89 FR 48641 (June 7, 2024).
\3\ See 89 FR 48639 (June 7, 2024).
\4\ See 89 FR 52042 (June 21, 2024).
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With regard to aligning the reporting of LMBEFD in accordance with
ASU 2022-02 on the Call Report, the Office of the Comptroller of the
Currency (OCC), Treasury; Federal Deposit Insurance Corporation (FDIC);
and Board (collectively, the agencies) are continuing to evaluate the
comments on their September 2023 proposal,\5\ as well, as the comments
received on this proposal. Upon conclusion of their review, the
agencies will adopt a standard through a subsequent Paperwork Reduction
Act (PRA) notice with a public comment period.
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\5\ See 88 FR 66933 (September 28, 2023).
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The commenter stated that the FR Y-9C's definition of LMBEFDs
should align with the U.S. GAAP definition, specifically Accounting
Standards Codification (ASC) Subtopic 310-10 and not scope in any
additional modifications. The commenter noted that ASC Subtopic 310-10
requires disclosure of modifications of receivables to borrowers
experiencing financial difficulty where the modification results in the
form of (1) principal forgiveness, (2) an interest rate reduction, (3)
an other-than-insignificant payment delay, or (4) a term extension (or
a combination thereof) to be disclosed for financial reporting
purposes. The commenter mentioned that it would be helpful if the Board
would explicitly confirm the definitional alignment with U.S GAAP and
therefore limit the population of LMBEFD for regulatory reporting
purposes to those four modifications. In response to the commenter, the
four modifications referenced from ASC Subtopic 310-10 are explicitly
included in the FR Y-9Cs definition of LMBEFD and therefore limits the
population of LMBEFD accordingly.
2. Other Comments Received
The Board also received comments that were not specifically related
to the proposed changes in this proposal. The commenter recommended
that the Board should propose and implement changes to the reporting of
loans to nondepository institutions (NDFIs) and nonpurpose margin loans
on the FR Y-9C to be consistent with the recently finalized Call Report
proposal.\6\ The commenter also recommended that any changes to the
definition of `Past Due' should be aligned and implemented concurrently
between the FR Y-9, FR 2886b, and the Call Reports.
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\6\ See 89 FR 45046 (May 22, 2024).
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In response, the Board may propose and implement revisions to the
FR Y-9C related to the reporting of NDFI loans and nonpurpose margin
loans that would be consistent with the finalized Call Report proposal.
Additionally, the Board may also propose changes related to the
definition of ``Past Due'' in the FR Y-9 and FR 2886b that would be
aligned and implemented concurrent with the Call Reports. Any future
changes to the FR Y-9C and FR 2886b related to the reporting of NDFI
loans, nonpurpose margin loans, and the definition of ``Past Due''
would be subject to the PRA notice and comment process.
Board of Governors of the Federal Reserve System, November 12,
2024.
Benjamin W. McDonough,
Deputy Secretary and Ombuds of the Board.
[FR Doc. 2024-26707 Filed 11-14-24; 8:45 am]
BILLING CODE 6210-01-P
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