[Federal Register Volume 87, Number 103 (Friday, May 27, 2022)]
[Notices]
[Pages 32164-32165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11505]



[[Page 32164]]

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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice, request for comment.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
invites comment on a proposal to extend for three years, with revision, 
the Reports of Foreign Banking Organizations (FR Y- 7N, FR Y-7NS, and 
FR Y-7Q; OMB No. 7100-0125).

DATES: Comments must be submitted on or before July 26, 2022.

ADDRESSES: You may submit comments, identified by FR Y-7N, FR Y-7NS, 
and FR Y-7Q, by any of the following methods:
    <bullet> Agency website: https://www.federalreserve.gov/. Follow 
the instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#2f5d4a485c014c4042424a415b5c6f494a4b4a5d4e435d4a5c4a5d594a01484059"><span class="__cf_email__" data-cfemail="196b7c7e6a377a7674747c776d6a597f7c7d7c6b78756b7c6a7c6b6f7c377e766f">[email protected]</span></a>. Include the OMB 
number or FR number in the subject line of the message.
    <bullet> Fax: (202) 452-3819 or (202) 452-3102.
    <bullet> Mail: Federal Reserve Board of Governors, Attn: Ann E. 
Misback, Secretary of the Board, Mailstop M-4775, 2001 C St NW, 
Washington, DC 20551.
    All public comments are available from the Board's website at 
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 confidential 
business information, identifying information, or contact information. 
Public comments may also be viewed electronically or in paper in Room 
M-4365A, 2001 C St NW, Washington, DC 20551, between 9:00 a.m. and 5:00 
p.m. on weekdays. For security reasons, the Board requires that 
visitors make an appointment to inspect comments. You may do so by 
calling (202) 452-3684. Upon arrival, visitors will be required to 
present valid government-issued photo identification and to submit to 
security screening in order to inspect and photocopy comments.
    Additionally, commenters may send a copy of their comments to the 
Office of Management and Budget (OMB) Desk Officer for the Federal 
Reserve Board, Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Room 10235, 725 
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the Paperwork Reduction Act (PRA) to approve and assign 
OMB control numbers to collections of information conducted or 
sponsored by the Board. In exercising this delegated authority, the 
Board is directed to take every reasonable step to solicit comment. In 
determining whether to approve a collection of information, the Board 
will consider all comments received from the public and other agencies.
    During the comment period for this proposal, a copy of the proposed 
PRA OMB submission, including the draft reporting form and 
instructions, supporting statement, and other documentation, will be 
made available on the Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears above. Final 
versions of these documents will be made available at https://www.reginfo.gov/public/do/PRAMain, if approved.

Request for Comment on Information Collection Proposals

    The Board invites public comment on the following information 
collections, which are being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Board's functions, including whether the 
information has practical utility;
    b. The accuracy of the Board's estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.
    At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the Board 
should modify the proposal.

Proposal Under OMB Delegated Authority To Extend for Three Years, With 
Revision, the Following Information Collection

    Collection title: Reports of Foreign Banking Organizations.
    Collection identifiers: FR Y-7N, FR Y-7NS, and FR Y-7Q.
    OMB control number: 7100-0125.
    Frequency: Quarterly, annually.
    Respondents: Non-functionally regulated U.S. nonbank subsidiaries 
held by foreign banking organizations (FBOs) other than through a U.S. 
bank holding company (BHC), financial holding company (FHC), or U.S. 
bank.
    Estimated number of respondents: FR Y-7N (quarterly): 28; FR Y-7N 
(annual): 14; FR Y-7NS: 18; FR Y-7Q (quarterly): 120; FR Y-7Q (annual): 
30.
    Estimated average hours per response: FR Y-7N (quarterly): 7.6; FR 
Y-7N (annual): 7.6; FR Y-7NS: 1; FR Y-7Q (quarterly): 3.25; FR Y-7Q 
(annual): 2.5.
    Estimated annual burden hours: FR Y-7N (quarterly): 851; FR Y-7N 
(annual): 106; FR Y-7NS: 18; FR Y-7Q (quarterly): 1,560; FR Y-7Q 
(annual): 75.
    General description of collection: The FR Y-7N consists of an 
income statement and a balance sheet; schedules that collect 
information on changes in equity capital, changes in the allowance for 
loan and lease losses, off-balance-sheet data items, and loans; and a 
memoranda section. All FBOs file the FR Y-7N quarterly for their 
significant nonbank subsidiaries that do not have a primary U.S. 
regulator other than the Federal Reserve System. Subsidiaries are 
defined as significant if they have total assets of at least $1 billion 
or off-balance-sheet activities (including commitments to purchase 
foreign currencies and U.S. dollar exchange, all other futures and 
forwards contracts, option contracts, and the notional value of 
interest rate swaps, exchange swaps and other swaps) of $5 billion or 
more, as of the end of a quarter. FBOs must commence quarterly 
reporting for a subsidiary at the end of the quarter in which the 
subsidiary meets the significance threshold, and must continue to file 
quarterly for the remainder of a calendar year even if the subsidiary 
no longer satisfies the size requirement for quarterly filing of the FR 
Y-7N.
    The FR Y-7N is filed annually, as of December 31, for each 
individual

[[Page 32165]]

nonbank subsidiary that does not meet the criteria for filing quarterly 
and that has total assets of at least $500 million.
    The FR Y-7NS is an abbreviated reporting form that collects net 
income, total assets, equity capital, and total off-balance-sheet data 
items. The FR Y-7NS is filed annually, as of December 31, by top-tier 
FBOs for each individual nonbank subsidiary that does not have a 
primary U.S. regulator other than the Federal Reserve System (and does 
not meet the filing criteria for filing the FR Y-7N) with total assets 
greater than or equal to $250 million.
    The FR Y-7Q collects consolidated capital and asset information 
from all FBOs. Part 1 of the reporting form currently collects the 
following information: Tier 1 capital; total risk-based capital; risk-
weighted assets; total consolidated assets; total combined assets of 
U.S. operations; net of intercompany balances and transactions between 
U.S. domiciled affiliates, branches, and agencies; and total U.S. non-
branch assets. In addition, an FBO that files the FR Y 7Q because it 
has made an effective election to be treated as an FHC also must 
provide separate capital schedules on Part 2 of the FR Y-7Q quarterly 
for each lower-tier FBO operating a branch, agency, Edge or agreement 
corporation, or commercial lending company in the United States. Part 
1A of the FR Y-7Q is filed quarterly by FBOs if the top-tier FBO or any 
FBO in its tiered structure has made an effective election to be 
treated as an FHC and by FBOs with total consolidated assets of $50 
billion or more, regardless of FHC status. Part 1B of the FR Y-7Q is 
filed quarterly by FBOs with combined U.S. assets of $100 billion or 
more, or combined U.S. assets of less than $100 billion but total 
consolidated assets of $250 billion or more. The FR Y-7Q is filed 
annually if the FBO or any FBO in its tiered structure has not 
effectively elected to be an FHC and the FBO has total consolidated 
assets of less than $50 billion.
    Proposed revisions: For the FR Y-7Q, the Board proposes to add an 
additional line item on Part 1A., Capital and Asset Information for the 
Top-tier Foreign Banking Organization, to collect the total combined 
U.S. assets net of intercompany balances and transactions on a 
quarterly average basis. This line item would be used for analytical 
purposes to track the growth of FBOs in the U.S. and to make reporting 
more consistent with the reporting of total combined assets of U.S. 
operations, net of intercompany balances and transactions in the 
Systemic Risk Report (FR Y-15; OMB No. 7100-0352), which is filed by 
some FBOs.
    The Board also proposes to revise the FR Y-7Q report to remove the 
option of filing on a fiscal year basis and to instead require the 
respondent to file on a calendar period basis. As of December 31, 2020, 
only approximately five percent of respondents submitted the FR Y-7Q on 
a fiscal year basis. The elimination of the fiscal filing basis would 
be consistent with other Federal Reserve regulatory reports. The change 
also would enhance the Board's ability to monitor FBOs that may be 
approaching the asset threshold to file the FR Y-15, as well as to 
provide data on the same filing frequency basis as with the U.S. legal 
entity regulatory report forms (i.e., Consolidated Financial Statements 
for Holding Companies (FR Y-9C; OMB No. 7100-0128), Consolidated 
Reports of Condition of Income (FFIEC 031/041/051; OMB No. 7100-0036)). 
In addition, the change would enable calculations for Regulation TT 
assessments to be made at the same speed and efficiency as for 
domestic-only holding companies, which file the FR Y-9C.
    Additionally, the Board proposes to change the filing deadline from 
90 days after quarter-end to 30 days after quarter-end for quarterly 
filers and from 90 days after quarter-end to 45 days after quarter-end 
for annual filers. Shortening the reporting deadline will allow for 
more timely analysis needed for effective FBO supervision; the 
efficiency gain will also allow for a more expedient process for 
Supervision staff to have a full picture of the FBO's financial 
structure from parent company global and US assets, consistent with the 
FBO's legal entities. The instructions were modified, effective 
December 31, 2021, to note that respondents would also have the option 
to submit the FR Y-7Q report electronically via Reporting Central. 
Electronic filing provides respondents with a more efficient option to 
submit the FR Y-7Q report.
    Finally, the Board proposes to remove line item 8, as-of financial 
date, in Part 1A and line item 6, as-of financial date, in Part 2, as 
the elimination of the fiscal year basis reporting makes these items 
unnecessary. The Board also proposes to make other minor clarifications 
and conforming edits to the form and instructions.
    The proposed changes would be effective with the FR Y-7Q submission 
for the December 31, 2022, as-of date.
    Legal authorization and confidentiality: The FR Y-7N, Y-7NS, and Y-
7Q are authorized by the Bank Holding Company Act (BHC Act) and 
International Banking Act. The FR Y-7N, Y-7NS, and Y-7Q are 
additionally authorized by section 165 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act. The FR Y-7N, Y-7NS, and Y-7Q are 
mandatory.
    The information contained on the FR Y-7N, Y-7NS, and Y-7Q is 
generally not considered confidential unless an applicant requests 
confidential treatment in accordance with the Board's Rules Regarding 
Availability of Information. Requests for confidential treatment of 
information are reviewed on a case-by-case basis. Information provided 
on the FR Y-7N, Y-7NS, and Y-7Q may be exempt from disclosure pursuant 
to exemption 4 of the Freedom of Information Act (FOIA) if it is 
nonpublic commercial or financial information, which is both 
customarily and actually treated as private by the respondent. 
Submissions of the FR Y-7N, Y-7NS, and Y-7Q may also contain personnel 
and medical files the disclosure of which would constitute a clearly 
unwarranted invasion of personal privacy, which are protected under 
exemption 6 of the FOIA; or 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, which are protected under 
exemption 8 of the FOIA.

    Board of Governors of the Federal Reserve System, May 24, 2022.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2022-11505 Filed 5-26-22; 8:45 am]
BILLING CODE 6210-01-P


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