[Federal Register Volume 85, Number 130 (Tuesday, July 7, 2020)]
[Notices]
[Pages 40646-40649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14572]
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FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Temporary approval of information collection, request for
comment.
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SUMMARY: The Board of Governors of the Federal Reserve System (Board)
has temporarily revised the Consolidated Financial Statements for
Holding Companies (FR Y-9C; OMB No. 7100-0128) pursuant to the
authority delegated to the Board by the Office of Management and Budget
(OMB), per 5 CFR part 1320, App.A(1)(a)(3)(A) (OMB Regulations on
Controlling Paperwork Burdens on the Public). Additionally, the Board
invites comment on a proposal to extend the FR Y-9 family of reports
for three years, with these revisions to the FR Y-9C.
DATES: Comments must be submitted on or before September 8, 2020.
ADDRESSES: You may submit comments, identified by FR Y-9, by any of the
following methods:
Agency website: https://www.federalreserve.gov/. Follow
the instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Email: regs.comments@federalreserve.gov. Include the OMB
number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
All public comments are available from the Board's website at
https://www.federalreserve.gov/apps/foia/proposedregs.aspx 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 identifying or
contact information. Public comments may also be viewed electronically
or in paper in Room 146, 1709 New York Avenue NW, Washington, DC 20006,
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--Alex
Goodenough--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: 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 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. Pursuant to its
delegated authority, the Board may 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 obligations.
As discussed below, the Board has made certain temporary revisions
to the FR Y-9C information collection. The Board's delegated authority
requires that the Board, after temporarily approving a collection,
publish a notice soliciting public comment. Therefore, the Board is
also inviting comment on a proposal to extend the FR Y-9 family of
reports for three years, with these revisions to the FR Y-9C.
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.
Final Approval Under OMB Delegated Authority of the Temporary Revision
of, and Proposal To Extend 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; FR Y-
9CS.
OMB control number: 7100-0128.
Frequency: Quarterly, semiannually, and annually.
Respondents: Bank holding companies (BHCs), savings and loan
holding companies (SLHCs), securities holding companies (SHCs), and
U.S. intermediate holding companies (IHCs)
[[Page 40647]]
(collectively, holding companies (HCs)).\1\
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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 five
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:
Reporting
FR Y-9C (non AA HCs CBLR) with less than $5 billion in total
assets--29.17, FR Y-9C (non AA HCs CBLR) with $5 billion or more in
total assets--35.14, FR Y-9C (non AA HCs non-CBLR) with less than $5
billion in total assets--41.01, FR Y-9C (non AA HCs non-CBLR) with $5
billion or more in total assets--46.98, FR Y-9C (AA HCs)--48.80, 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--8,284, FR Y-9C (non AA HCs CBLR) with $5 billion or more in
total assets--4,920, FR Y-9C (non AA HCs non-CBLR) with less than $5
billion in total assets--13,779, FR Y-9C (non AA HCs non-CBLR) with $5
billion or more in total assets--28,940, FR Y-9C (AA HCs)--3,709, 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. The Board requires HCs 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 report serves as
standardized financial statements for the consolidated holding company.
The FR Y-9LP and FR Y-9SP are parent-company only financial statements
submitted primarily based on the HC's total consolidated assets. 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, and the FR Y-
9ES annually, as applicable, and the FR Y-9CS on a schedule that is
determined when this supplement is used.
Current Actions
The Board has temporarily revised the FR Y-9C to collect four new
data items related to the Paycheck Protection Payment (PPP) loans and
the Paycheck Protection Program Liquidity Facility (PPPLF).\2\
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\2\ 85 FR 20387 (April 13, 2020).
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In addition, the Board temporarily revised the FR Y-9C to collect
two new items related to Section 4013 of the CARES Act. Section 4013 of
the CARES Act permits holding companies flexibility in modifying loans
related to the coronavirus disease 2019 (COVID-19).
New Data Items Related to the PPPLF
Section 1102 of the CARES Act allows for banking organizations to
make loans under a program of the Small Business Administration (SBA)
in connection with COVID-19 disruptions to small businesses (referred
to as PPP loans or PPP covered loans). While the loans are funded by
the banking organizations, they receive a guarantee from the SBA. The
Federal Reserve subsequently established a liquidity facility to permit
banking organizations to obtain non-recourse loans, for which PPP loans
are pledged to the facility, to provide additional liquidity.
The Board needs to collect information on the number and
outstanding balance of PPP loans, as well as the outstanding balance
and quarterly average of PPP loans pledged to the liquidity facility,
for use in supervising holding companies. These items also would enable
Federal Reserve supervision staff to monitor credit and liquidity risk,
aggregate industry trends, and individual institutions' use of the
PPPLF. Therefore, the Board temporarily approved the addition of four
new data items to collect this information, with the collection of
these items expected to be time-limited. The Board would collect these
items through the December 31, 2021, as-of date. If the Board
subsequently determines that there is a supervisory need for this
information beyond December 31, 2021, an extension of these items would
be published for comment in a separate Federal Register notice.
Starting with the June 30, 2020, reporting period, a holding
company will be required to report the total number of PPP loans
outstanding, the outstanding balance of PPP loans, the outstanding
balance of PPP loans pledged to the Federal Reserve's liquidity
facility, and the quarterly average amount of PPP loans pledged to the
Federal Reserve's liquidity facility and excluded from average total
assets in the calculation of the leverage ratio. These items have been
added to Schedule HC-M, as items 25.a, 25.b, 25.c, and 25.d.
Section 4013 of Cares Act
Section 4013 of the CARES Act suspends the requirements under
United States generally accepted accounting principles for eligible
loan modifications related to the COVID-19 pandemic that would
otherwise be categorized as troubled debt restructurings (TDRs). The
CARES Act defines an eligible loan under section 4013 (section 4013
loan) as a loan modification that is (1) related to COVID-19, (2)
executed on a loan that was not more than 30 days past due as of
December 31, 2019, and (3) executed between March 1, 2020, and the
earlier of (A) 60 days after the date of termination of the National
Emergency concerning the COVID-19 outbreak or (B) December 31, 2020.
Section 4013(d)(2) of the CARES Act provides that federal banking
agencies may collect data about section 4013 loans for supervisory
purposes.
Holding companies accounting for eligible loans under Section 4013
are not required to apply ASC Subtopic 310-40 to the Section 4013 loans
for the term of the loan modification. In
[[Page 40648]]
addition, HCs do not have to report Section 4013 loans as TDRs in
regulatory reports. However, as provided for under Section 4013, HCs
should maintain records of the volume of section 4013 loans and the
collection of data about such loans may be required for supervisory
purposes.
Consistent with section 4013(d)(2) of the CARES Act, the Board has
added two new data items for section 4013 loans to the FR Y-9C, which
would be collected quarterly beginning with the June 30, 2020, report
date. These confidential items would enable Federal Reserve supervision
staff to monitor credit risk, aggregate industry trends, and individual
institutions' use of the temporary relief provided by section 4013.
These new items, Memorandum item 16.a, ``Number of Section 4013 loans
outstanding,'' and Memorandum item 16.b, ``Outstanding balance of
Section 4013 loans,'' have been added to Schedule HC-C, Part I, Loans
and Leases. These items will enable the Board to monitor individual
HCs' use of the temporary relief provided by Section 4013 as well as
the volume of loans modified in accordance with section 4013. The Board
would collect these items through the December 31, 2021, as-of date. If
the Board subsequently determines that there is a supervisory need for
this information beyond December 31, 2021, an extension of these items
would be published for comment in a separate Federal Register notice.
The Board will collect institution-level section 4013 loan
information on a confidential basis. The Board has encouraged financial
institutions to work with their borrowers during the National Emergency
related to COVID-19, including use of the relief under Section 4013.\3\
However, public disclosure of supervisory information on Section 4013
loans could have a detrimental impact on holding companies offering
modifications under this provision to borrowers that need relief due to
COVID-19.
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\3\ See ``Interagency Statement on Loan Modifications and
Reporting for Financial Institutions Working with Customers Affected
by the Coronavirus (Revised)'' (April 7, 2020), available at https://www.occ.gov/news-issuances/news-releases/2020/nr-ia-2020-50a.pdf.
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The Board has determined that these temporary revisions 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, would interfere with the Board's ability to
perform its statutory duties and to properly supervise holding
companies.
Additionally, the Board proposes to extend the FR Y-9 family of
reports for three years, with the revisions to the FR Y-9C discussed
above, in order to permit continued accurate reporting of related data.
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)), as amended by
sections 369(8) and 604(h)(2) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act); 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 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.
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.
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.
Additionally, items on the FR Y-9C, Schedule HC-C for loans
modified under section 4013, data items Memorandum items 16.a, ``Number
of Section 4013 loans outstanding'' and Memorandum items 16.b,
``Outstanding balance of Section 4013 loans'' are considered
confidential. While the Board generally makes institution-level FR Y-9C
report data publicly available, the Board is collecting section 4013
loan information as part of condition reports for the impacted HCs and
the Board considers disclosure of these items at the HC level would not
be in the public interest.\4\ Such information is permitted to be
collected on a confidential basis, consistent with 5 U.S.C.
552(b)(8).\5\ In addition, holding companies may be reluctant to offer
modifications under section 4013 if information on these modifications
made by each holding company is publicly available, as analysts,
investors, and other users of public FR Y-9C report information may
penalize an institution for using the relief provided by the CARES Act.
The Board may disclose section 4013 loan data on an aggregated basis,
consistent with confidentiality or as otherwise required by law.
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\4\ See 12 U.S.C. 1464(v)(2).
\5\ Exemption 8 of the Freedom of Information Act (FOIA)
specifically exempts from disclosure 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.''
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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 such request to determine if confidential treatment is
appropriate, and will inform the respondent if the request for
confidential treatment has been denied.
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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)).
Consultation outside the agency: The Federal Reserve consulted with
the Office of the Comptroller of the Currency and the Federal Deposit
Insurance Corporation in the development of this proposal.
Board of Governors of the Federal Reserve System, July 1, 2020.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2020-14572 Filed 7-6-20; 8:45 am]
BILLING CODE 6210-01-P