86560 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

manner that is consistent with the 

requirements in TSCA for the use of the 

best available science, and ensure 

decisions are based on the weight of the 

scientific evidence. 

The specific risk evaluation process 

that EPA has established by rule to 

implement the statutory process is set 

out in 40 CFR part 702 and summarized 

on EPA’s website at http://

www.epa.gov/assessing-and-managingchemicals-under-tsca/risk-evaluationsexisting-chemicals-under-tsca. As 

explained in the preamble to EPA’s final 

rule on procedures for risk evaluation 

(82 FR 33726, July 20, 2017) (FRL– 

9964–38), the specific regulatory 

process set out in 40 CFR part 702, 

subpart B is being followed for the first 

ten chemical substances undergoing risk 

evaluation to the maximum extent 

practicable. 

Prior to the publication of this final 

risk evaluation, a draft risk evaluation 

was subject to peer review and public 

comment. EPA reviewed the report from 

the peer review committee and public 

comments and has amended the risk 

evaluation in response to these 

comments as appropriate. The public 

comments, peer review report, and 

EPA’s response to comments is in 

Docket ID No. EPA–HQ–OPPT–2019– 

0236. Prior to the publication of the 

draft risk evaluation, EPA made 

available the scope and problem 

formulation, and solicited public input 

on uses and exposure. EPA’s documents 

and the public comments are in Docket 

ID No. EPA–HQ–OPPT–2016–0743. 

Additionally, information about the 

scope, problem formulation, and draft 

risk evaluation phases of the TSCA risk 

evaluation for this chemical is available 

at EPA’s website at https://

www.epa.gov/assessing-and-managingchemicals-under-tsca/risk-evaluation-nmethylpyrrolidone-nmp-0. 

B. What is n-Methylpyrrolidone (NMP)? 

n-Methylpyrrolidone (CASRN 872– 

50–4), also called n-methyl-2- 

pyrrolidone, or 1-methyl-2-pyrrolidone, 

is a water-miscible, organic solvent that 

is often used as a substitute for 

halogenated solvents. NMP is widely 

used in the chemical manufacturing, 

petrochemical processing and 

electronics industries, and in 

semiconductor fabrication and lithium 

ion battery manufacturing {FMI, 2015, 

3827469}. In the commercial sector, 

NMP is primarily used for producing 

and removing paints, coatings and 

adhesives. Other applications include 

use in solvents, reagents, sealers, inks 

and grouts, industrial, commercial and 

consumer uses and disposal. CDR data 

shows that the total aggregate 

production volume for NMP decreased 

slightly from 164 to 160 million pounds 

between 2012 and 2015. 

Authority: 15 U.S.C. 2601 et seq. 

Andrew Wheeler, 

Administrator. 

[FR Doc. 2020–28872 Filed 12–29–20; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL RESERVE SYSTEM 

Change in Bank Control Notices; 

Acquisitions of Shares of a Bank or 

Bank Holding Company 

The notificants listed below have 

applied under the Change in Bank 

Control Act (Act) (12 U.S.C. 1817(j)) and 

§ 225.41 of the Board’s Regulation Y (12 

CFR 225.41) to acquire shares of a bank 

or bank holding company. The factors 

that are considered in acting on the 

applications are set forth in paragraph 7 

of the Act (12 U.S.C. 1817(j)(7)). 

The public portions of the 

applications listed below, as well as 

other related filings required by the 

Board, if any, are available for 

immediate inspection at the Federal 

Reserve Bank(s) indicated below and at 

the offices of the Board of Governors. 

This information may also be obtained 

on an expedited basis, upon request, by 

contacting the appropriate Federal 

Reserve Bank and from the Board’s 

Freedom of Information Office at 

https://www.federalreserve.gov/foia/ 

request.htm. Interested persons may 

express their views in writing on the 

standards enumerated in paragraph 7 of 

the Act. 

Comments regarding each of these 

applications must be received at the 

Reserve Bank indicated or the offices of 

the Board of Governors, Ann E. 

Misback, Secretary of the Board, 20th 

Street and Constitution Avenue NW, 

Washington, DC 20551–0001, not later 

than January 14, 2021. 

A. Federal Reserve Bank of 

Minneapolis (Chris P. Wangen, 

Assistant Vice President), 90 Hennepin 

Avenue, Minneapolis, Minnesota 

55480–0291: 

1. Teresa L. Kuhn, Dilworth, 

Minnesota; to acquire control of voting 

shares of Bankshares of Hawley, Inc. 

(Bankshares), by becoming a trustee of 

Valley Premier Bank Employee Stock 

Ownership Plan and Trust, which owns 

Bankshares, and thereby indirectly 

owns Valley Premier Bank, all of 

Hawley, Minnesota. 

B. Federal Reserve Bank of Chicago 

(Colette A. Fried, Assistant Vice 

President) 230 South LaSalle Street, 

Chicago, Illinois 60690–1414: 

1. The Lynette G. Drake Trust, Lynette 

G. Drake and Alan D. Drake, as cotrustees, L Drake Commons LLC, Jeffrey 

Roberts, as manager, J Roberts 

Commons LLC, Lynette Drake, as 

manager; all of Bad Axe, Michigan; to 

join the Roberts Family Control Group, 

a group acting in concert, to retain 

voting shares of Northstar Financial 

Group, Inc., and thereby indirectly 

retain voting shares of Northstar Bank, 

both of Bad Axe, Michigan, and West 

Michigan Community Bank, 

Hudsonville, Michigan. 

In addition, The Jerry A. Peplinski 

Trust, Jerry A. Peplinski, as trustee, F 

Peplinski Commons LLC, Lynda 

Watchowski, as manager, J Peplinski 

Commons LLC, Frank A. Peplinski, as 

manager, D Peplinski Commons LLC, 

Jerry Peplinski, as manager, T Peplinski 

Commons LLC, David Peplinski, as 

manager, and L Watchowski Commons 

LLC, Terry Peplinski, as manager; all of 

Bad Axe, Michigan, to join the Peplinski 

Family Control Group, a group acting in 

concert, to retain voting shares of 

Northstar Financial Group, Inc., and 

thereby indirectly retain voting shares of 

Northstar Bank and West Michigan 

Community Bank. 

Board of Governors of the Federal Reserve 

System, December 23, 2020. 

Margaret McCloskey Shanks, 

Deputy Secretary of the Board. 

[FR Doc. 2020–28857 Filed 12–29–20; 8:45 am] 

BILLING CODE 6210–01–P 

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. 

ACTION: Approval of information 

collection. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) has 

adopted two proposals to extend for 

three years, with revision, the Capital 

Assessments and Stress Testing Reports 

(FR Y–14A/Q/M; OMB No. 7100–0341). 

The revisions are effective for the 

December 31, 2020, as of date. 

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—Shagufta 

Ahmed—Office of Information and 

Regulatory Affairs, Office of 

Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86561 

1SLHCs with $100 billion or more in total 

consolidated assets became members of the FR Y– 

14Q and FR Y–14M panels effective June 30, 2020, 

and become members of the FR Y–14A panel 

effective December 31, 2020. See 84 FR 59032 

(November 1, 2019). 

2The estimated number of respondents for the FR 

Y–14M is lower than for the FR Y–14Q and FR Y– 

14A because, in recent years, certain respondents to 

the FR Y–14A and FR Y–14Q have not met the 

materiality thresholds to report the FR Y–14M due 

to their lack of mortgage and credit activities. The 

Board expects this situation to continue for the 

foreseeable future. 

3On October 10, 2019, the Board issued a final 

rule that eliminated the requirement for firms 

subject to Category IV standards to conduct and 

publicly disclose the results of a company-run 

stress test. See 84 FR 59032 (Nov. 1, 2019). That 

final rule maintained the existing FR Y–14 

substantive reporting requirements for these firms 

in order to provide the Board with the data it needs 

to conduct supervisory stress testing and inform the 

Board’s ongoing monitoring and supervision of its 

supervised firms. However, as noted in the final 

rule, the Board intends to provide greater flexibility 

to banking organizations subject to Category IV 

standards in developing their annual capital plans 

and consider further change to the FR Y–14 reports. 

See 84 FR 59032, 59063. In October 2020, the Board 

invited comment on a proposal that would relieve 

firms subject to Category IV standards of the 

requirement to report their company-run stress test 

results on the FR Y–14A and would make certain 

other revisions to the FR Y–14 reports. 85 FR 63222 

(Oct. 7, 2020). 

4See 85 FR 41040 (July 8, 2020). 

5See 85 FR 58048 (September 17, 2020). 

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 PRA to approve and 

assign OMB control numbers to 

collections of information conducted or 

sponsored by the Board. Boardapproved 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 https://

www.reginfo.gov/public/do/PRAMain. 

These documents are also available on 

the Federal Reserve 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 above. 

Final Approval Under OMB Delegated 

Authority of the Extension for Three 

Years, With Revision, of the Following 

Information Collection 

Report title: Capital Assessments and 

Stress Testing Reports. 

Agency form number: FR Y–14A/Q/ 

M. 

OMB control number: 7100–0341. 

Frequency: Annually, quarterly, and 

monthly. 

Respondents: These collections of 

information are applicable to bank 

holding companies (BHCs), U.S. 

intermediate holding companies (IHCs), 

and savings and loan holding 

companies (SLHCs) 1 with $100 billion 

or more in total consolidated assets, as 

based on: (i) The average of the firm’s 

total consolidated assets in the four 

most recent quarters as reported 

quarterly on the firm’s Consolidated 

Financial Statements for Holding 

Companies (FR Y–9C); or (ii) if the firm 

has not filed an FR Y–9C for each of the 

most recent four quarters, then the 

average of the firm’s total consolidated 

assets in the most recent consecutive 

quarters as reported quarterly on the 

firm’s FR Y–9Cs. Reporting is required 

as of the first day of the quarter 

immediately following the quarter in 

which the respondent meets this asset 

threshold, unless otherwise directed by 

the Board. 

Estimated number of respondents: FR 

Y–14A/Q: 36; FR Y–14M: 34.2

Estimated average hours per response: 

FR Y–14A: 1,186 hours; FR Y–14Q: 

2,203 hours; FR Y–14M: 1,072 hours; FR 

Y–14 On-going Automation Revisions: 

480 hours; FR Y–14 Attestation Ongoing Attestation: 2,560 hours. 

Estimated annual burden hours: FR 

Y–14A: 42,696 hours; FR Y–14Q: 

317,232 hours; FR Y–14M: 437,376 

hours; FR Y–14 On-going Automation 

Revisions: 17,280 hours; FR Y–14 

Attestation On-going Attestation: 33,280 

hours. 

General description of report: This 

family of information collections is 

composed of the following three reports: 

• The annual FR Y–14A collects 

quantitative projections of balance 

sheet, income, losses, and capital across 

a range of macroeconomic scenarios and 

qualitative information on 

methodologies used to develop internal 

projections of capital across scenarios.3

• The quarterly FR Y–14Q collects 

granular data on various asset classes, 

including loans, securities, trading 

assets, and PPNR for the reporting 

period. 

• The monthly FR Y–14M is 

comprised of three retail portfolio- and 

loan-level schedules, and one detailed 

address-matching schedule to 

supplement two of the portfolio and 

loan-level schedules. 

The data collected through the FR Y– 

14A/Q/M reports (FR Y–14 reports) 

provide the Board with the information 

needed to help ensure that large firms 

have strong, firm-wide risk 

measurement and management 

processes supporting their internal 

assessments of capital adequacy and 

that their capital resources are sufficient 

given their business focus, activities, 

and resulting risk exposures. The 

reports are used to support the Board’s 

annual Comprehensive Capital Analysis 

and Review (CCAR) and Dodd-Frank 

Act Stress Test (DFAST) exercises, 

which complement other Board 

supervisory efforts aimed at enhancing 

the continued viability of large firms, 

including continuous monitoring of 

firms’ planning and management of 

liquidity and funding resources, as well 

as regular assessments of credit, market 

and operational risks, and associated 

risk management practices. Information 

gathered in this data collection is also 

used in the supervision and regulation 

of respondent financial institutions. 

Respondent firms are currently required 

to complete and submit up to 17 filings 

each year: One annual FR Y–14A filing, 

four quarterly FR Y–14Q filings, and 12 

monthly FR Y–14M filings. Compliance 

with the information collection is 

mandatory. 

Current actions: On July 8, 2020, the 

Board published a notice in the Federal 

Register,4 which temporarily revised 

and requested public comment for 60 

days on the extension, with revision, of 

the FR Y–14 reports. The temporary 

revisions captured data pertaining to 

certain aspects of the Coronavirus Aid, 

Relief, and Economic Security Act, 

information on firm activity associated 

with various Federal Reserve lending 

facilities, and information regarding 

emerging risks arising from the 

coronavirus disease 2019 (COVID) 

event. In addition to a proposal to 

extend these temporary revisions, the 

notice proposed revisions to the FR Y– 

14 reports intended to address questions 

related to the reporting of certain 

current expected credit losses (CECL) 

and capital data. The comment period 

for this notice expired on September 8, 

2020. The Board received two comment 

letters from banking industry groups 

and one comment letter from a banking 

organization. 

On September 17, 2020, the Board 

published another notice in the Federal 

Register,5 which temporarily revised 

and requested public comment for 60 

days on the extension, with revision, of 

the FR Y–14 reports. The temporary 

revisions implemented changes 

necessary to collect information used to 

conduct additional analysis in 

connection with the resubmission of 

firms’ capital plans, including 

consideration of the global market shock 

(GMS) component, using data as of June 

86562 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

6See 85 FR 56607 (September 14, 2020). 

30, 2020. In addition to these temporary 

revisions, the notice proposed revisions 

to the FR Y–14 reports that would have 

allowed the Board to require the 

submission of additional FR Y–14A and 

FR Y–14Q data in connection with a 

firm’s resubmission of its capital plan. 

The comment period for this notice 

expired on November 16, 2020. The 

Board did not receive any comments on 

this notice. 

The Board has approved the extension 

of the FR Y–14 reports for three years, 

with revision. These revisions include 

adopting most of the temporary 

revisions announced in the July 8, 2020, 

with minor changes in response to 

public comments, for three additional 

months. The temporary revisions will 

automatically expire following the 

March 31, 2021, as of date. In addition, 

the Board has adopted the revisions 

related to CECL and capital data that 

were proposed in the July 8, 2020, 

notice, as well as the revisions related 

to FR Y–14 submission requirements in 

connection with a firm’s resubmission 

of its capital plan that were proposed in 

the September 17, 2020, notice. All 

revisions are effective beginning with 

the December 31, 2020, as of date. 

Detailed Discussion of Public 

Comments 

General 

Adoption of Temporary Revisions 

The Board solicited comment on a 

proposal to extend the temporary 

revisions included in the July 8, 2020, 

notice for three years, while noting that 

the temporary revisions would 

automatically expire following the 

December 31, 2020, as of date, unless 

explicitly reauthorized by the Board. 

Two commenters recommended that the 

Board only reauthorize specific 

temporary revisions to the extent those 

revisions are critical, and to keep in 

mind firm resource constraints during 

the COVID event when deciding 

whether to reauthorize any temporary 

revisions. Additionally, two 

commenters recommended the Board 

provide reporting firms and the public 

as much notice as possible, preferably at 

least three months, before requiring 

firms to continue to report any 

reauthorized revisions, in order to ease 

the reporting burden. 

Given ongoing economic uncertainty 

surrounding the COVID event, the Board 

has adopted the proposal to extend the 

FR Y–14 reports with most of these 

revisions with certain changes that are 

effective for the December 31, 2020, as 

of date. However, in order to reduce 

reporting burden, temporary revisions 

associated with Federal Reserve lending 

facilities that are set to expire at the end 

of December 2020, including the Main 

Street Lending Program (MSLP), will 

only remain in place through the 

December 31, 2020, as of date. All other 

temporary revisions will remain in 

place through the reports as of March 

31, 2021. 

Submission Frequency 

The Board temporarily revised the FR 

Y–14Q instructions to indicate that in 

times of crisis, the Board may 

temporarily request submissions of 

schedules more frequently than firms 

are generally required to submit the 

schedules. One commenter stated that 

requiring FR Y–14Q schedules more 

frequently would cause reporting 

burden on firms, and requested that any 

more frequent submission of schedules 

be required only if firms are given at 

least 60 days’ notice and if possible, an 

opportunity to provide comments. 

The Board notes that requiring any FR 

Y–14Q schedules more frequently than 

firms generally are required to submit 

them would only be done in times of 

crisis, and the Board would provide 

firms with as much notice as possible 

given the circumstances. 

FR Y–14 Reporting Questions 

The Board did not temporarily revise 

or propose to revise its current process 

for responding to FR Y–14 reporting 

questions. One commenter requested 

that the Board expedite its responses to 

reporting questions associated the FR 

Y–14 temporary revisions given that the 

temporary revisions were implemented 

prior to the public comment period. 

The Board strives to respond to all FR 

Y–14 reporting questions it receives 

from firms as soon as possible. Some 

questions require significant time to 

research. The Board notes that it has 

responded promptly to many questions 

regarding the temporary revisions to the 

FR Y–14. 

Supplemental Collections 

At times, the Board has requested that 

certain firms submit supplemental 

collections that provide alternative 

breakouts of FR Y–14 data that are not 

available from other sources in 

conjunction with the FR Y–14 data 

submitted for use in the DFAST and 

CCAR exercises. One commenter 

requested that the Board incorporate all 

supplemental collections into the FR Y– 

14 report so firms can adequately plan 

for the data requirements surrounding a 

given FR Y–14 submission. 

The Board has incorporated several 

supplemental collections into the FR Y– 

14 report. For example, as finalized on 

September 14, 2020,6 the Board 

incorporated three supplemental 

collections into the FR Y–14Q report 

(two were incorporated into Schedule F 

(Trading) and one was incorporated into 

Schedule M (Balances)). Where 

appropriate, the Board will continue to 

incorporate supplemental collections 

into the FR Y–14 report. 

Wholesale 

Submission Frequency 

The Board temporarily revised FR Y– 

14Q, Schedule H (Wholesale) to be 

reported monthly instead of quarterly 

for firms subject to Category I–III 

standards. Two commenters stated that 

certain items on Schedule H are not 

available or are not collected by firms 

from third parties on a monthly basis, 

and that firm resources are already 

constrained as a result of the COVID 

event. Per the commenter, firms have 

not been able to make permanent 

technological changes and have not 

been able to put adequate resources 

towards a more streamlined solution to 

obtain and verify data on a monthly 

basis due to the fact that this reporting 

frequency change went into effect prior 

to the public comment period, as well 

as the fact that this revision could have 

expired following the December 31, 

2020, as of date (i.e., Schedule H would 

revert to being reported quarterly for all 

firms). 

As indicated in the Schedule H 

instructions, the Board has identified 

certain items that are not required for 

the monthly Schedule H submissions 

that do not coincide with quarter ends 

(e.g., as of July 31). The remaining items 

are needed on a monthly basis in order 

to assess the current economic status 

and to better understand potential shifts 

in the risk profiles of firms. The Board 

acknowledges that some items are not 

collected by third parties or are not 

available on a monthly basis. In those 

cases, firms should report the 

information available to the firm on a 

given as of date. In addition, the 

instructions for several items allow 

firms to report the most recently 

updated data or ‘‘NA’’ if updated 

information is not available. 

Data Quality Checks 

The Board performs quality checks on 

data submitted through regulatory 

reports, such as the FR Y–14 reports. 

Two commenters suggested that the 

Board should exclude certain quality 

checks for FR Y–14Q, Schedule H 

(Wholesale) data submitted on a 

monthly basis, as certain quality checks 

Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86563 

7See 85 FR 56607 (September 14, 2020). 

are tied to other regulatory reports that 

are submitted quarterly (e.g., FR Y–9C). 

The commenters went on to say that 

responding to these quality checks on a 

monthly basis is particularly 

challenging as firm resources are 

constrained by the COVID event. One 

commenter stated that in some cases, 

values reported in certain ‘‘Obligor 

Financial Data’’ items (items 52 through 

82) of Schedule H.1 (Corporate) do not 

factor into the credit decision for a given 

exposure, such as in cases of startup 

companies with limited or no available 

financial data. In these cases, the 

commenter recommends that in order to 

reduce burden, firms should be allowed 

to report ‘‘NA’’ for certain ‘‘Obligor 

Financial Data’’ items and not be 

required to address any associated data 

quality checks. 

In order to facilitate the monthly 

Schedule H submission process, the 

Board has reduced the number of edit 

responses required for non-quarter end 

submissions. For example, the Board 

has not been running data quality 

checks for non-quarter end monthly 

Schedule H submissions that compare 

values to the FR Y–9C. 

Main Street Lending Program 

The Board temporarily revised FR Y– 

14Q, Schedule H (Wholesale) to require 

firms to report only their exposures to 

loans associated with the MSLP (i.e., not 

include the amount participated to third 

parties or the unused portion of loan 

commitments). For other exposures 

reported on Schedule H, firms are 

required to include the amount 

participated to third parties, as well as 

the unused portion of loan 

commitments, as part of the reporting 

firm’s total lending commitment. One 

commenter expressed concern that this 

divergence would cause an issue when 

comparing commitments on Schedule H 

to those reported on the FR Y–9C, 

which is referenced in the instructions 

for several Schedule H items. The 

commenter stated that this different 

treatment for commitment reporting is 

causing operational burden for firms, 

and recommends that loans associated 

with the MSLP be reported consistently 

with other loans reported on Schedule 

H. 

The Board did not intend to require 

different treatment for loans associated 

with the MSLP compared to other 

commitments reported on Schedule H. 

In light of the concerns raised by the 

commenter, the Board has revised the 

Schedule H instructions to align the 

reporting of commitments to loans 

associated with the MSLP with other 

commitments reported on the schedule, 

effective for the December 31, 2020, as 

of date. 

Internal Risk Rating Schedule 

The Board did not temporarily revise 

or propose to revise FR Y–14Q, 

Schedule H.4 (Internal Risk Rating). One 

commenter suggested that the Board 

expand Schedule H.4 to require 

additional items, such as probability of 

default information, which would 

provide the Board with better context 

for understanding firms’ internal risk 

ratings. The commenter also suggested 

that the Board revise Schedule H.4 to 

correspond with FR Y–14Q, Schedule L 

(Counterparty), as both schedules 

require an internal and external rating 

equivalent factor. 

The Board notes that firms are 

currently allowed to provide as much 

detail as possible in the free text 

description of Schedule H.4, item 1 

(‘‘Internal Risk Rating’’). For example, 

firms can provide information that 

would provide a better understanding 

their internal ratings, such as external 

rating equivalent data points. The Board 

intends to consider adding items to 

Schedule H.4 that would provide more 

context to the data submitted as part of 

a future notice. However, the Board has 

not expanded Schedule H.4 to 

correspond with Schedule L, as the data 

between the two schedules does not 

readily align. 

Collateral Market Value 

The current FR Y–14Q, Schedule H.1 

(Corporate), item 93, ‘‘Collateral Market 

Value,’’ instructions require firms to 

report the market value of collateral as 

of the reporting date, and to report 

‘‘NA’’ if the value of the collateral has 

not been updated since reported on the 

previous Schedule H.1 submission. The 

Board did not temporarily revise or 

propose to revise Schedule H.1, item 93. 

One commenter pointed out that the 

instructions for Schedule H.1, item 93 

do not specify how to report the value 

of collateral that is typically recorded at 

book value, such as receivables and 

inventory comprising a borrowing base 

for asset-based lending. To ensure 

consistent reporting across firms, the 

commenter recommended that the 

Board clarify how item 93 should be 

reported for types of collateral that not 

typically recorded at market value. 

For consistency across exposures, 

firms should continue to report in line 

with the current instructions. The Board 

has not revised the Schedule H.1, item 

93 instructions to allow for reporting at 

book value. 

Past Due Reporting 

The Board did not temporarily revise 

or propose to revise the reporting of past 

due exposures in the ‘‘# Days Principal 

or Interest Past Due’’ items (Schedule 

H.1, item 32; Schedule H.2, item 37). 

One commenter noted that while 

Schedule H is reported at the facility 

level, there could be cases where only 

some of the multiple loans under a 

given facility are past due. Per the 

commenter, this creates ambiguity for 

reporting the number of days past due 

for an entire facility. The commenter 

recommended that the Board revise 

Schedule H to add more granular 

delinquency buckets or an item to 

capture the total balance past due 

within a given facility. 

Per the instructions for the ‘‘# Days 

Principal or Interest Past Due’’ items, 

firms are required to report the longest 

number of days principal or interest are 

past due for any loan within the facility. 

Given the different uses of the collected 

data on the FR Y–14 and FR Y–9C, the 

Board has not revised the FR Y–14 to 

have similar delinquency buckets as the 

FR Y–9C. In addition, the Board does 

not currently need to capture the total 

balance of loans past due within a 

facility to conduct its analysis, and so 

has not added an item to collect this 

information. 

Capital Call Subscriptions 

The Board did not temporarily revise 

or propose to revise the reporting of 

capital call subscriptions on FR Y–14Q, 

Schedule H (Wholesale). One 

commenter noted that the Board 

previously revised Schedule H.1 

(Corporate), items 20 (‘‘Credit Facility’’) 

and 22 (‘‘Credit Facility Purpose’’) to 

require firms to indicate which facilities 

are capital call subscriptions, effective 

for the September 30, 2020, as of date.7

Per the commenter, the Board should 

also revise Schedule H.1 item 36 

(‘‘Security Type’’) to allow firms to 

identify the collateral associated with 

capital call subscriptions. The 

commenter noted that this additional 

collateral information would enable the 

Board to better capture information 

regarding a firm’s ability to require a 

fund manager to inject capital into a 

fund that is declining in value, which 

would more accurately reflect the true 

risk of these exposures. Relatedly, one 

commenter requested that the Board 

provide definitions for the allowable 

values to be reported in Schedule H.1, 

items 20 and 22, as there could be a 

divergence in practice across firms. 

86564 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

8See https://www.kansascityfed.org/banking/ 

bankerresources/complete-and-file-reports/sharednational-credit. 9See 84 FR 70529 (December 23, 2019). 

As indicated in the instructions, the 

values for the descriptions and codes 

used in Schedule H.1, items 20 and 22 

relate to the requirements referenced in 

the reporting for Shared National Credit 

data.8 Please note that while the listing 

referenced in the reporting for Shared 

National Credit data is not the entirety 

of the types and purposes possible for 

Schedule H reporting, it does cover a 

majority of them. The Board intends to 

consider adding definitions to the FR Y– 

14Q, Schedule H instructions as part of 

a future notice. 

Disposed Loans 

The Board did not temporarily revise 

or propose to revise the reporting of 

disposed loans on FR Y–14Q, Schedule 

H (Wholesale). However, one 

commenter suggested that the Board 

revise the Schedule H instructions to 

allow disposed facilities to be reported 

with data as of the prior reporting cycle 

rather than as of the day of disposition. 

The Board believes collecting loan 

disposition information as it existed at 

the point of disposition is critical, and 

accordingly has not revised the current 

requirements for disposed loans on 

Schedule H. 

Par and Fair Value Items 

The Board did not temporarily revise 

or propose to revise the reporting of par 

value and fair value exposure items on 

FR Y–14Q, Schedule H (Wholesale). 

However, one commenter noted that 

previous FR Y–14 questions and 

answers (Q&As) have clarified that firms 

should report certain fair value 

exposure items based on the 

predominate share of the committed 

balance. Per the commenter, the 

reporting based on these Q&As would 

enable the Board to derive the value for 

two par/fair value exposure items 

(‘‘Lower of Cost or Market (LOCOM) 

Flag,’’ Schedule H.1, item 86 and 

Schedule H.2, item 56 and ‘‘Target 

Hold’’ Schedule H.1, item 101) from the 

four par/fair value exposure items 

(‘‘Committed Exposure Global Par 

Value’’, Schedule H.1, item 105’’, 

Schedule H.2, item 66; ‘‘Utilized 

Exposure Global Par Value’’, Schedule 

H.1, item 106; ‘‘Committed Exposure 

Global Fair Value’’, Schedule H.1, item 

107, Schedule H.2, item 68; ‘‘Utilized 

Exposure Global Fair Value’’, Schedule 

H.1, item 108; ‘‘Outstanding Balance Par 

Value’’, Schedule H.2, item 67; and 

‘‘Outstanding Balance Fair Value’’, 

Schedule H.2, item 69) that were added 

for the March 31, 2020, as of date.9

Therefore, the commenter recommends 

that the ‘‘LOCOM Flag’’ and ‘‘Target 

Hold’’ items be removed from Schedule 

H. The commenter further stated that if 

the ‘‘LOCOM Flag’’ item is retained, 

then it is unclear how exposures should 

be reported in the par/fair value 

exposure items. 

The Board notes that each par/fair 

value exposure item on Schedule H 

provides a different perspective on the 

exposures and gives a more holistic 

view of the valuation of exposures. The 

‘‘LOCOM Flag’’ and ‘‘Target Hold’’ 

items allow for validation and 

categorization of loan data. Per the 

instructions, firms should report 

appropriate values of the entire credit 

facility for held for sale loans and loans 

accounted for under a fair value option 

for the par/fair value items. The Board 

further notes that reporting guidance 

based on FR Y–14 Q&As issued prior to 

the addition of the par/fair value 

exposure items (i.e., prior to March 31, 

2020) should not be applied to the par/ 

fair value exposure items that were 

added for the March 31, 2020, as of date. 

Firms should report these items based 

on the Schedule H instructions. 

Obligor and Guarantor Reporting 

The Board did not temporarily revise 

or propose to revise the reporting of the 

legal entity that provides the primary 

source of repayment for a credit facility 

on FR Y–14Q, Schedule H (Wholesale). 

The current FR Y–14Q, Schedule H.1 

(Corporate) instructions require firms to 

report the obligor in the ‘‘Obligor 

Financial Data’’ items (items 52 through 

82) as the legal entity that provides the 

primary source of repayment for a credit 

facility identified in item 15 (‘‘Internal 

Credit Facility ID’’). The instructions 

further state that the legal entity that 

provides the primary source of 

repayment will generally be different 

than the guarantor, which provides 

secondary support for repayment. Per 

one commenter, the instructions 

regarding the obligor and guarantor 

create ambiguity as it is not clear 

whether the guarantor could ever be 

viewed as the primary source of 

repayment, which the commenter states 

could happen in cases where the 

guarantor is used in underwriting as a 

primary source of repayment. 

Per the instructions, Schedule H.1, 

item 15 should reflect the legal entity 

providing the primary source of 

repayment or, if different, the legal 

entity used by underwriting as the 

primary source of repayment identified. 

Information surrounding the guarantor, 

or secondary source of repayment, is 

outlined and differentiated in Schedule 

H.1, items 44 through 48 (‘‘Guarantor 

Flag’’, ‘‘Guarantor Internal ID’’, 

‘‘Guarantor Name’’, ‘‘Guarantor TIN’’, 

and ‘‘Guarantor Internal Risk Rating’’, 

respectively). 

Loss Mitigation 

Loss Mitigation Item Reporting 

The Board temporarily added items 

and options to existing items to capture 

loans in forbearance or other loss 

mitigation programs on several FR Y–14 

schedules, such as FR Y–14Q, Schedule 

H (Wholesale) and FR Y–14M, Schedule 

B (Home Equity). One commenter 

recommended that these items and 

options to existing items only be 

reported quarterly so that the firms 

would not be required to recode systems 

for potentially temporary changes to the 

FR Y–14 report. Per the commenter, 

quarterly reporting of these items would 

reduce reporting burden. 

Given that these loans in forbearance 

or other loss mitigation programs have 

different risk characteristics than loans 

not in these programs, receiving this 

information on a monthly basis is 

critical to enable the Board to more 

accurately assess current banking 

conditions. 

The Board temporarily added items to 

FR Y–14Q, Schedule A (Retail) and 

Schedule J (Retail FVO/HFS) to require 

firms to report loans that have 

completed loss mitigation or for which 

mitigation has expired during the 

reporting period. One commenter stated 

that it is burdensome for firms and may 

not provide valuable insight to 

commingle loans no longer in loss 

mitigation programs with loans 

currently in loss mitigation programs. 

The commenter recommends that the 

requirement to include loans no longer 

in loss mitigation be removed. 

Given the reporting burden and 

commingling effect of reporting loans no 

longer in loss mitigation programs with 

loans currently in loss mitigation 

programs, the Board has revised the 

Schedule A and Schedule J instructions 

to require firms to exclude the balances 

of loans that completed their loss 

mitigation programs in the current 

month from these added items. In 

addition, due to questions from 

reporting firms, the Board has revised 

the loss mitigation item on Schedule J 

to capture the carrying value of loans in 

loss mitigation, as opposed to the 

unpaid principal balance. Both of these 

revisions are effective for the December 

31, 2020, as of date. 

The Board temporarily added items to 

FR Y–14Q, Schedule H (Wholesale) to 

Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86565 

10Large and complex firms, Large Institution 

Supervision Coordinating Committee (LISCC) firms, 

and SLHCs subject to Category II–III standards with 

a portfolio of U.S. small business (retail) loans with 

an asset balance greater than $5 billion or greater 

than ten percent of Tier 1 capital on average for four 

quarters preceding the reporting quarter are 

required to file FR Y–14Q, Schedule A.9. Large and 

noncomplex firms and SLHCs subject to Category 

IV standards with a portfolio of U.S. small business 

(retail) loans with an asset balance greater than $5 

billion or greater than ten percent of Tier 1 capital 

on average for four quarters preceding the reporting 

quarter are required to file FR Y–14Q, Schedule 

A.9. 

11See 84 FR 70529 (December 23, 2019). 

12See https://www.federalreserve.gov/ 

publications/y-14-qas.htm. 

capture loans currently in loss 

mitigation programs or forbearance as a 

result of the COVID event. One 

commenter pointed out that the 

instructions for these new items does 

not capture loans that were classified as 

troubled debt restructurings (TDRs) 

prior to the onset of the COVID event 

that have been subsequently modified as 

a result of the COVID event. The 

commenter requested that the Board 

clarify how these modified loans should 

be reported on Schedule H. 

To remove ambiguity, the Board has 

revised the instructions to the 

‘‘Modifications Flag’’ items (Schedule 

H.1, item 109; Schedule H.2, item 70) to 

clarify that loans that were classified as 

TDRs prior to the onset of the COVID 

event and have been subsequently 

modified should be reported under 

Option 3 (‘‘Other’’), effective for the 

December 31, 2020, as of date. 

Risk Mitigation Activities 

The Board did not temporarily revise 

or propose to revise the reporting of risk 

mitigation activities (e.g., subordinated 

credit protection from third parties 

referencing an on-balance sheet 

portfolio of loans) on the FR Y–14 

report. However, one commenter noted 

that the existing FR Y–14 report does 

not capture the data necessary to allow 

risk mitigation activities to be taken into 

consideration by supervisory models. 

Per the commenter, the inclusion of risk 

mitigation activity data on the FR Y–14 

report would allow the Board to more 

accurately reflect the exposure risks to 

firms as part of the stress test. 

The Board intends to consider 

revising the FR Y–14 reports to capture 

risk mitigation activities as part of a 

future notice. 

Retail 

Paycheck Protection Program Loans 

The Board temporarily added an item 

to FR Y–14Q, Schedule A.9 (U.S. Small 

Business) to capture loans fully 

guaranteed by the United States 

government, which would include 

Paycheck Protection Program (PPP) 

loans. One commenter stated that per 

the Schedule A.9 instructions, only 

‘‘scored’’ or ‘‘delinquency managed’’ 

loans should be reported, and neither of 

those criteria apply to PPP loans. 

Schedule A.9 requires certain variables 

(e.g., product type, available credit 

bureau score, etc.) to be reported for 

loans reported on the schedule. 

According to two commenters, many of 

these variables do not apply to PPP 

loans because they are originated 

outside of the typical process for firms 

given that they are fully guaranteed by 

the Small Business Association (SBA). 

Additionally, one commenter raised that 

Schedule A.9 is only supposed to 

capture retail exposures, but the current 

instructions for the new item require 

reporting of both retail and wholesale 

exposures. Given these concerns, two 

commenters recommend that the Board 

exclude PPP loans from Schedule A.9 

and instead have them reported on FR 

Y–14Q, Schedule K (Supplemental), 

similar to how loans associated with the 

MSLP are reported. 

In response, the Board notes that it is 

important to capture PPP loans in a 

consistent manner across FR Y–14 

submissions for purposes of data 

comparability. If certain variables 

required for Schedule A are not 

available for PPP loans, then firms 

should only report the variables for PPP 

loans that they have available. The 

Board has not revised the reporting of 

PPP loans. 

Historical Data Requirement 

One commenter noted that the 

inclusion of PPP loans in Schedule A.9 

has caused some firms to exceed the 

quantitative threshold for reporting this 

schedule.10 With the initial submission 

of this schedule, firms are required to 

report historical data going back to 

January of 2007. One commenter stated 

that PPP loans are only expected to be 

on a firm’s books for a short period of 

time (i.e., less than one year), and that 

once the PPP loans are no longer 

reported on Schedule A.9, some firms 

will drop back below the reporting 

threshold. The commenter further stated 

that firms face operational challenges 

with gathering and validating 13 years 

of historical data. The commenter 

recommended that if the Board 

continues to require PPP loans to be 

reported on Schedule A.9, then firms 

should not be required to submit 

historical data for Schedule A.9 if they 

exceed the reporting threshold as a 

result of including PPP loans in this 

schedule. 

The Board believes that the required 

historical data on Schedule A.9 are 

critical to adequately monitor ongoing 

risks, and accordingly has not revised 

this requirement. 

Trading 

Private Equity Investments 

The Board did not temporarily revise 

or propose to revise the reporting of 

non-fair value private equity 

investments on FR Y–14Q, Schedule F 

(Trading). However, on December 23, 

2019,11 the Board indicated that it 

would assess whether the macro 

scenario is more appropriate than the 

global market shock for evaluating 

losses associated with non-fair value 

private equity investment exposures. 

One commenter inquired about the 

status of this assessment. 

At this time, the Board believes the 

macro scenario is more appropriate than 

the global market shock for evaluating 

losses associated with non-fair value 

private equity investment exposures, 

but will continue to analyze the issue. 

Separately, in an FR Y–14 question 

and answer (Q&A) published in March 

of 2020,12 the Board clarified that firms 

could exclude tax oriented investments 

held under the equity method of 

accounting from the ‘‘Other Fair Value 

Assets’’ portion of FR Y–1Q, Schedule 

F (Trading). The Board further clarified 

that tax oriented investments held 

under the equity method of accounting 

should only be reported on Schedule F 

if they are included in the included in 

other portions of Schedule F (i.e., not 

the ‘‘Other Fair Value Assets’’ portion). 

One commenter suggested that this 

same treatment should be applied to 

non-fair value private equity 

investments, as non-fair value private 

equity investments share many 

characteristics with fair value private 

equity investments, such as an illiquid 

nature, expected multi-year holding 

period, as well as the timing and 

amount of associated losses. 

The exclusion of non-fair value tax 

oriented investments from Schedule F 

was not based on an assessment of their 

risk characteristics, but rather on the 

fact that they are neither trading 

positions, private equity positions, nor 

fair value assets, and so do not fall 

under the scope of Schedule F. The 

same rationale does not apply to nonfair value private equity positions, 

which do fall under the scope of 

Schedule F, as they are private equity 

positions. Given this, the Board has not 

revised the reporting for non-fair value 

private equity positions. 

86566 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

13Public Law 115–174, Title IV 401(a) and (e), 

132 Stat. 1296, 1356–59 (2018). 

14Section 165(b)(2) 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 DoddFrank 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 of 1978, 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– 

14 reports. 

15The Board’s Final Rule referenced in section 

401(g) of EGRRCPA specifically stated that the 

Board would require IHCs to file the FR Y–14 

reports. See 79 FR 17240, 17304 (March 27, 2014). 

16Please note that the Board publishes a summary 

of the results of the Board’s CCAR testing pursuant 

to 12 CFR 225.8(f)(2)(v), and publishes a summary 

of the results of the Board’s DFAST stress testing 

pursuant to 12 CFR 252.46(b) and 12 CFR 238.134, 

which includes aggregate data. In addition, under 

the Board’s regulations, covered companies must 

also publicly disclose a summary of the results of 

the Board’s DFAST stress testing. See 12 CFR 

252.58; 12 CFR 238.146. The public disclosure 

requirement contained in 12 CFR 252.58 for 

covered BHCs and covered IHCs is separately 

accounted for by the Board in the Paperwork 

Reduction Act clearance for FR YY (OMB No. 7100– 

0350) and the public disclosure requirement for 

covered SLHCs is separately accounted for in by the 

Board in the Paperwork Reduction Act clearance for 

FR LL (OMB No. 7100–0380). 

Seed Capital Invested in Mutual Funds 

The Board did not temporarily revise 

or propose to revise the reporting of 

seed capital invested in mutual funds. 

The current FR Y–14Q, Schedule F 

(Trading) instructions require firms to 

report seed capital invested in mutual 

funds as private equity exposures. One 

commenter noted that this treatment 

may subject firms to unfavorable 

stressed losses, as the underlying 

investments of seed capital invested in 

mutual funds are in liquid, marketable 

securities across multiple asset classes, 

including fixed income and equity. 

Given the liquid, marketable nature of 

these underlying investments, the 

commenter recommended that these 

exposures should not be reported as 

private equity exposures, but rather 

reported within the respective subschedules of Schedule F, according to 

the underlying exposure. 

The Board intends to consider 

revising the reporting of seed capital 

invested in mutual funds as part of a 

future notice. 

Legal authorization and 

confidentiality: The Board has the 

authority to require BHCs to file the FR 

Y–14 reports pursuant to section 5(c) of 

the Bank Holding Company Act (‘‘BHC 

Act’’), 12 U.S.C. 1844(c), and pursuant 

to section 165(i) of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (Dodd-Frank Act), 12 U.S.C. 5365(i), 

as amended by section 401(a) and (e) of 

the Economic Growth, Regulatory 

Relief, and Consumer Protection Act 

(EGRRCPA).13 The Board has authority 

to require SLHCs to file the FR Y–14 

reports pursuant to section 10(b) of the 

Home Owners’ Loan Act (12 U.S.C. 

1467a(b)), as amended by section 369(8) 

and 604(h)(2) of the Dodd-Frank Act. 

Lastly, the Board has authority to 

require U.S. IHCs of FBOs to file the FR 

Y–14 reports pursuant to section 5 of 

the BHC Act, as well as pursuant to 

sections 102(a)(1) and 165 of the DoddFrank Act, 12 U.S.C. 5311(a)(1) and 

5365.14 In addition, section 401(g) of 

EGRRCPA, 12 U.S.C. 5365 note, 

provides that the Board has the 

authority to establish enhanced 

prudential standards for foreign banking 

organizations with total consolidated 

assets of $100 billion or more, and 

clarifies that nothing in section 401 

‘‘shall be construed to affect the legal 

effect of the final rule of the Board . . . 

entitled ‘Enhanced Prudential Standard 

for [BHCs] and Foreign Banking 

Organizations’ (79 FR 17240 (March 27, 

2014)), as applied to foreign banking 

organizations with total consolidated 

assets equal to or greater than $100 

million.’’ 15 The FR Y–14 reports are 

mandatory. The information collected in 

the FR Y–14 reports is collected as part 

of the Board’s supervisory process, and 

therefore, such information is afforded 

confidential treatment pursuant to 

exemption 8 of the Freedom of 

Information Act (FOIA), 5 U.S.C. 

552(b)(8). In addition, confidential 

commercial or financial information, 

which a submitter actually and 

customarily treats as private, and which 

has been provided pursuant to an 

express assurance of confidentiality by 

the Board, is considered exempt from 

disclosure under exemption 4 of the 

FOIA, 5 U.S.C. 552(b)(4).16

Board of Governors of the Federal Reserve 

System, December 22, 2020. 

Margaret Shanks, 

Deputy Secretary of the Board. 

[FR Doc. 2020–28788 Filed 12–29–20; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

Corporation To Do Business Under 

Section 25A of the Federal Reserve Act 

The companies listed in this notice 

have applied to the Board for approval, 

pursuant to Section 25A of the Federal 

Reserve Act (Edge Corporation) (12 

U.S.C. 611 et seq.), and all other 

applicable statutes and regulations to 

establish an Edge Corporation. The Edge 

Corporation will operate as a subsidiary 

of the applicant, First-Citizens Bank & 

Trust Company, Raleigh, North 

Carolina. The factors that are to be 

considered in acting on the application 

are set forth in the Board’s Regulation K 

(12 CFR 211.5). 

The public portions of the 

applications listed below, as well as 

other related filings required by the 

Board, if any, are available for 

immediate inspection at the Federal 

Reserve Bank(s) indicated below and at 

the offices of the Board of Governors. 

This information may also be obtained 

on an expedited basis, upon request, by 

contacting the appropriate Federal 

Reserve Bank and from the Board’s 

Freedom of Information Office at 

https://www.federalreserve.gov/foia/ 

request.htm. Interested persons may 

express their views in writing on the 

standards enumerated in Section 25A of 

the Federal Reserve Act. 

Comments regarding each of these 

applications must be received at the 

Reserve Bank indicated or the offices of 

the Board of Governors, Ann E. 

Misback, Secretary of the Board, 20th 

Street and Constitution Avenue NW, 

Washington, DC 20551–0001, not later 

than January 14, 2021. 

A. Federal Reserve Bank of Richmond 

(Adam M. Drimer, Assistant Vice 

President) 701 East Byrd Street, 

Richmond, Virginia 23219. Comments 

can also be sent electronically to or 

Comments.applications@rich.frb.org: 

1. First-Citizens Bank & Trust 

Company, Raleigh, North Carolina; to 

establish FC International, Inc., Raleigh, 

North Carolina, as an Edge Corporation. 

Board of Governors of the Federal Reserve 

System, December 23, 2020. 

Margaret McCloskey Shanks, 

Deputy Secretary of the Board. 

[FR Doc. 2020–28854 Filed 12–29–20; 8:45 am] 

BILLING CODE 6210–01–P