31148 Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 

1 12 U.S.C. 1852(a)(2), (b). 

2This number reflects the average of the financial 

sector liabilities figure for the year ending 

December 31, 2016 ($20,079,196,276,000) and the 

year ending December 31, 2017 

($20,487,047,614,000). 

3A financial company may request to use an 

accounting standard or method of estimation other 

than GAAP if it does not calculate its total 

consolidated assets or liabilities under GAAP for 

any regulatory purpose (including compliance with 

applicable securities laws). 12 CFR 251.3(e). In 

previous years, the Board received and approved 

requests from eleven financial companies to use an 

accounting standard or method of estimation other 

than GAAP to calculate liabilities. Ten of the 

companies are insurance companies that report 

financial information under Statutory Accounting 

Principles (‘‘SAP’’), and one is a foreign company 

that controls a U.S. industrial loan company that 

reports financial information under International 

Financial Reporting Standards (‘‘IFRS’’). For the 

insurance companies, the Board approved a method 

of estimation that was based on line items from 

SAP-based reports, with adjustments to reflect 

certain differences in accounting treatment between 

GAAP and SAP. For the foreign company, the Board 

approved the use of IFRS. These companies 

continue to use the previously approved methods. 

The Board did not receive any new requests this 

year. 

and regulations and also discusses 

consumer disclosures that financial 

institutions typically provide as a 

standard business practice. Certain 

portions of the guidance are 

‘‘information collections’’ subject to the 

PRA’s requirements. 

Legal authorization and 

confidentiality: The information 

collection is authorized pursuant to 

section 11 of the Federal Reserve Act, 12 

U.S.C. 248 (state member banks); 

sections 25 and 25A of the Federal 

Reserve Act, 12 U.S.C. 625 (Edge and 

Agreement corporations); section 5 of 

the Bank Holding Company Act of 1956, 

12 U.S.C. 1844 (bank holding companies 

and, in conjunction with section 8 of the 

International Banking Act, 12 U.S.C. 

3106, foreign banking organizations); 

section 7(c) of the International Banking 

Act of 1978, 12 U.S.C. 3105(c) (branches 

and agencies of foreign banks); and 

section 10 of the Home Owners’ Loan 

Act, 12 U.S.C. 1467a, (savings and loan 

holding companies). This guidance is 

voluntary. 

Because the documentation required 

by the guidance is maintained by each 

institution, the Freedom of Information 

Act (FOIA) would only be implicated if 

the Federal Reserve’s examiners 

retained a copy of this information as 

part of an examination or as part of its 

supervision of a financial institution. 

However, records obtained as a part of 

an examination or supervision of a 

financial institution are exempt from 

disclosure under FOIA exemption (b)(8) 

(5 U.S.C. 552(b)(8)). In addition, the 

information may also be kept 

confidential under exemption 4 of the 

FOIA which protects commercial or 

financial information obtained from a 

person that is privileged or confidential 

(5 U.S.C. 552(b)(4)). 

Board of Governors of the Federal Reserve 

System, June 28, 2018. 

Michele Taylor Fennell, 

Assistant Secretary of the Board. 

[FR Doc. 2018–14303 Filed 7–2–18; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

[Docket No. OP–1612] 

Announcement of Financial Sector 

Liabilities 

Section 622 of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act, implemented by the Board’s 

Regulation XX, prohibits a merger or 

acquisition that would result in a 

financial company that controls more 

than 10 percent of the aggregate 

consolidated liabilities of all financial 

companies (‘‘aggregate financial sector 

liabilities’’). Specifically, an insured 

depository institution, a bank holding 

company, a savings and loan holding 

company, a foreign banking 

organization, any other company that 

controls an insured depository 

institution, and a nonbank financial 

company designated by the Financial 

Stability Oversight Council (each, a 

‘‘financial company’’) is prohibited from 

merging or consolidating with, 

acquiring all or substantially all of the 

assets of, or acquiring control of, 

another company if the resulting 

company’s consolidated liabilities 

would exceed 10 percent of the 

aggregate financial sector liabilities.1

Pursuant to Regulation XX, the 

Federal Reserve will publish the 

aggregate financial sector liabilities by 

July 1 of each year. Aggregate financial 

sector liabilities equals the average of 

the year-end financial sector liabilities 

figure (as of December 31) of each of the 

preceding two calendar years. 

FOR FURTHER INFORMATION CONTACT: 

Sean Healey, Supervisory Financial 

Analyst, (202) 912–4611; Matthew 

Suntag, Counsel, (202) 452–3694; for the 

hearing impaired, TTY (202) 263–4869. 

Aggregate Financial Sector Liabilities 

Aggregate financial sector liabilities is 

equal to $20,283,121,945,000.2 This 

measure is in effect from July 1, 2018 

through June 30, 2019. 

Calculation Methodology 

Aggregate financial sector liabilities 

equals the average of the year-end 

financial sector liabilities figure (as of 

December 31) of each of the preceding 

two calendar years. The year-end 

financial sector liabilities figure equals 

the sum of the total consolidated 

liabilities of all top-tier U.S. financial 

companies and the U.S. liabilities of all 

top-tier foreign financial companies, 

calculated using the applicable 

methodology for each financial 

company, as set forth in Regulation XX 

and summarized below. 

Consolidated liabilities of a U.S. 

financial company that was subject to 

consolidated risk-based capital rules as 

of December 31 of the year being 

measured, equal the difference between 

its risk-weighted assets (as adjusted 

upward to reflect amounts that are 

deducted from regulatory capital 

elements pursuant to the Federal 

banking agencies’ risk-based capital 

rules) and total regulatory capital, as 

calculated under the applicable riskbased capital rules. Companies in this 

category include (with certain 

exceptions listed below) bank holding 

companies, savings and loan holding 

companies, and insured depository 

institutions. The Federal Reserve used 

information collected on the 

Consolidated Financial Statements for 

Holding Companies (FR Y–9C) and the 

Bank Consolidated Reports of Condition 

and Income (Call Report) to calculate 

liabilities of these institutions. 

Consolidated liabilities of a U.S. 

financial company not subject to 

consolidated risk-based capital rules as 

of December 31 of the year being 

measured, equal liabilities calculated in 

accordance with applicable accounting 

standards. Companies in this category 

include nonbank financial companies 

supervised by the Board, bank holding 

companies and savings and loan 

holding companies subject to the 

Federal Reserve’s Small Bank Holding 

Company Policy Statement, savings and 

loan holding companies substantially 

engaged in insurance underwriting or 

commercial activities, and U.S. 

companies that control insured 

depository institutions but are not bank 

holding companies or savings and loan 

holding companies. ‘‘Applicable 

accounting standards’’ is defined as 

GAAP, or such other accounting 

standard or method of estimation that 

the Board determines is appropriate.3

The Federal Reserve used information 

collected on the FR Y–9C, the Parent 

Company Only Financial Statements for 

Small Holding Companies (FR Y–9SP), 

and the Financial Company Report of 

Consolidated Liabilities (FR XX–1) to 

calculate liabilities of these institutions. 

Section 622 provides that the U.S. 

liabilities of a ‘‘foreign financial 

company’’ equal the risk-weighted 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 31149 

1 15 U.S.C. 1691. The CFPB’s Regulation B is 

located at 12 CFR part 1002. 

assets and regulatory capital attributable 

to the company’s ‘‘U.S. operations.’’ 

Under Regulation XX, liabilities of a 

foreign banking organization’s U.S. 

operations are calculated using the riskweighted asset methodology for 

subsidiaries subject to risk-based capital 

rules, plus the assets of all branches, 

agencies, and nonbank subsidiaries, 

calculated in accordance with 

applicable accounting standards. 

Liabilities attributable to the U.S. 

operations of a foreign financial 

company that is not a foreign banking 

organization are calculated in a similar 

manner to the method described for 

foreign banking organizations, but 

liabilities of a U.S. subsidiary not 

subject to risk-based capital rules are 

calculated based on the U.S. 

subsidiary’s liabilities under applicable 

accounting standards. The Federal 

Reserve used information collected on 

the Capital and Asset Report for Foreign 

Banking Organizations (FR Y–7Q), the 

FR Y–9C and the FR XX–1 to calculate 

liabilities of these institutions. 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Director of Supervision and Regulation under 

delegated authority, June 27, 2018. 

Ann Misback, 

Secretary of the Board. 

[FR Doc. 2018–14241 Filed 7–2–18; 8:45 am] 

BILLING CODE 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. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) is 

adopting a proposal to extend for three 

years, without revision, Recordkeeping 

and Disclosure Requirements 

Associated with Consumer Financial 

Protection Bureau’s (CFPB) Regulation B 

(Equal Credit Opportunity Act) (FR B; 

OMB No. 7100–0201). 

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. Telecommunications Device 

for the Deaf (TDD) users may contact 

(202) 263–4869, Board of Governors of 

the Federal Reserve System, 

Washington, DC 20551. 

OMB Desk Officer—Shagufta 

Ahmed—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, the Office of Management and 

Budget (OMB) delegated to the Board 

authority under the Paperwork 

Reduction Act (PRA) to approve of and 

assign OMB control numbers to 

collection of information requests and 

requirements conducted or sponsored 

by the Board. Board-approved 

collections of information are 

incorporated into the official OMB 

inventory of currently approved 

collections of information. Copies of the 

Paperwork Reduction Act Submission, 

supporting statements and approved 

collection of information instrument(s) 

are placed into OMB’s public docket 

files. The Board may not conduct or 

sponsor, and the respondent is not 

required to respond to, an information 

collection that has been extended, 

revised, or implemented on or after 

October 1, 1995, unless it displays a 

currently valid OMB control number. 

Final approval under OMB delegated 

authority of the extension for three 

years, without revision, of the following 

report: 

Report title: Recordkeeping and 

Disclosure Requirements Associated 

with Consumer Financial Protection 

Bureau’s (CFPB) Regulation B (Equal 

Credit Opportunity Act). 

Agency form number: FR B. 

OMB control number: 7100–0201. 

Frequency: Monthly; annually. 

Respondents: State member banks; 

subsidiaries of state member banks; 

subsidiaries of bank holding companies; 

U.S. branches and agencies of foreign 

banks (other than federal branches, 

federal agencies, and insured state 

branches of foreign banks); commercial 

lending companies owned or controlled 

by foreign banks; and organizations 

operating under section 25 or 25A of the 

Federal Reserve Act (12 U.S.C. 601– 

604a; 611–631). 

Estimated number of respondents: 

Notifications, furnishing of credit 

information, record retention 

(applications, actions, and prescreened 

solicitations), information for 

monitoring purposes, and rules on 

providing appraisal reports (providing 

appraisal report), 958 respondents; Selftesting: Record retention—incentives, 92 

respondents; Self-testing: Record 

retention—self-correction, 23 

respondents; and Self-testing: Record 

retention—rules concerning requests for 

information (disclosure for optional selftest), 92 respondents. 

Estimated average hours per response: 

Notifications, 6 hours; Furnishing of 

credit information, 2.5 hours; Record 

retention (applications, actions, and 

prescreened solicitations), 8 hours; 

Information for monitoring purposes, 

0.25 hours; Rules on providing appraisal 

reports (providing appraisal report), 3 

hours; Self-testing: Record retention— 

incentives, 2 hours; Self-testing: Record 

retention—self-correction, 8 hours; and 

Self-testing: Record retention—rules 

concerning requests for information 

(disclosure for optional self-test), 3.5 

hours. 

Estimated annual burden hours: 

Notifications, 68,976 hours; Furnishing 

of credit information, 28,740 hours; 

Record retention (applications, actions, 

and prescreened solicitations), 7,664 

hours; Information for monitoring 

purposes, 2,874 hours; Rules on 

providing appraisal reports (providing 

appraisal report), 34,488 hours; Selftesting: Record retention—incentives, 

184 hours; Self-testing: Record 

retention—self-correction, 184 hours; 

and Self-testing: Record retention—rules 

concerning requests for information 

(disclosure for optional self-test), 3,864 

hours. 

General description of report: The 

Equal Credit Opportunity Act (ECOA) 

was enacted in 1974 and is 

implemented by the CFPB’s Regulation 

B for institutions the Board supervises.1

The ECOA prohibits discrimination in 

any aspect of a credit transaction 

because of race, color, religion, national 

origin, sex, marital status, age (provided 

the applicant has the capacity to 

contract), or other specified bases 

(receipt of public assistance, or the fact 

that the applicant has in good faith 

exercised any right under the Consumer 

Credit Protection Act (15 U.S.C. 1600 et 

seq.)). To aid in implementation of this 

prohibition, the statute and regulation 

subject creditors to various mandatory 

disclosure requirements, notification 

provisions informing applicants of 

action taken on the credit application, 

provision of appraisal reports in 

connection with mortgages, credit 

history reporting, monitoring rules, and 

recordkeeping requirements. These 

requirements are triggered by specific 

events and disclosures must be 

provided within the time periods 

established by the statute and 

regulation. 

Legal authorization and 

confidentiality: The CFPB is authorized 

to issue its Regulation B pursuant to its 

authority to prescribe regulations to 

carry out the purposes of ECOA (15 

U.S.C. 1691b). The obligation to comply 

with the recordkeeping and disclosure 


sradovich on DSK3GMQ082PROD with NOTICES