6336 Federal Register / Vol. 81, No. 24 / Friday, February 5, 2016 / Notices 

1Public Law 111–203, 124 Stat. 1376, July 2010. 

2 12 U.S.C. 5365(i)(2)(A). 

3 12 U.S.C. 5301(12). 

4 12 U.S.C. 5365(i)(2)(C). 

(ii) Determination of a risk ranking to 

develop and implement preventive and 

mitigative measures; 

(iii) Documentation of risk evaluation 

and decision basis for preventive and 

mitigative measures implemented; 

(iv) Provision for data feedback and 

validation; and 

(v) Regular, periodic risk assessment 

reviews to update information, and 

evaluate risk management effectiveness. 

10. For ongoing verification and 

demonstration of the integrity of the 

underground storage reservoir or cavern, 

operators should use appropriate 

monitoring techniques such as the 

monitoring of pressure and periodic 

pressure surveys, inventory (injection & 

withdrawal of all products), product 

levels, cavern subsidence, and the 

findings from adjacent production and 

water wells, and observation wells used 

to monitor underground storage 

including any integrity changes. 

11. Emergency procedures should 

identify the types of emergencies for 

which the operator should notify public 

emergency response officials, personnel 

training, periodic communication with 

local emergency response officials, 

identification of the local area impacted, 

notices to the public, and identification 

of any third-party service providers or 

technical experts needed in the event of 

an emergency. Emergency procedures 

should be reviewed, conducted, and 

updated at least annually. 

12. Records of the processes, 

procedures, assessments, reassessments, 

and mitigation measures required 

should be maintained for the life of the 

storage well. 

Issued in Washington, DC, on February 2, 

2016, under authority delegated in 49 CFR 

1.97. 

Alan K. Mayberry, 

Deputy Associate Administrator for Policy 

and Programs. 

[FR Doc. 2016–02228 Filed 2–4–16; 8:45 am] 

BILLING CODE 4910–60–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

Agency Information Collection 

Activities: Revision of an Approved 

Information Collection; Submission for 

OMB Review; Company-Run Annual 

Stress Test Reporting Template and 

Documentation for Covered 

Institutions With Total Consolidated 

Assets of $50 Billion or More Under the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act 

AGENCY: Office of the Comptroller of the 

Currency, Treasury (OCC). 

ACTION: Notice and request for comment. 

SUMMARY: The OCC, as part of its 

continuing effort to reduce paperwork 

and respondent burden, invites the 

general public and other federal 

agencies to comment on a revision to 

this information collection, as required 

by the Paperwork Reduction Act of 

1995. An agency may not conduct or 

sponsor, and a respondent is not 

required to respond to, an information 

collection unless it displays a currently 

valid Office of Management and Budget 

(OMB) control number. The OCC is 

finalizing revisions to a regulatory 

reporting requirement for national banks 

and federal savings associations titled, 

‘‘Company-Run Annual Stress Test 

Reporting Template and Documentation 

for Covered Institutions with Total 

Consolidated Assets of $50 Billion or 

More under the Dodd-Frank Wall Street 

Reform and Consumer Protection Act.’’ 

The OCC also is giving notice that it has 

sent the collection to OMB for review. 

DATES: Comments must be received by 

March 7, 2016. 

ADDRESSES: Because paper mail in the 

Washington, DC area and at the OCC is 

subject to delay, commenters are 

encouraged to submit comments by 

email, if possible. Comments may be 

sent to: Legislative and Regulatory 

Activities Division, Office of the 

Comptroller of the Currency, Attention: 

1557–0319, 400 7th Street SW., Suite 

3E–218, Mail Stop 9W–11, Washington, 

DC 20219. In addition, comments may 

be sent by fax to (571) 465–4326 or by 

electronic mail to prainfo@occ.treas.gov. 

You may personally inspect and 

photocopy comments at the OCC, 400 

7th Street SW., Washington, DC 20219. 

For security reasons, the OCC requires 

that visitors make an appointment to 

inspect comments. You may do so by 

calling (202) 649–6700 or, for persons 

who are deaf or hard of hearing, TTY, 

(202) 649–5597. Upon arrival, visitors 

will be required to present valid 

government-issued photo identification 

and submit to security screening in 

order to inspect and photocopy 

comments. 

All comments received, including 

attachments and other supporting 

materials, are part of the public record 

and subject to public disclosure. Do not 

include any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

Additionally, please send a copy of 

your comments by mail to: OCC Desk 

Officer, [1557–0319], U.S. Office of 

Management and Budget, 725 17th 

Street NW., #10235, Washington, DC 

20503, or by email to: oira_

submission_@omb.eop.gov. 

FOR FURTHER INFORMATION CONTACT: 

Shaquita Merritt or Mary H. Gottlieb, 

OCC Clearance Officers, (202) 649–5490 

or, for persons who are deaf or hard of 

hearing, TTY, (202) 649–5597, 

Legislative and Regulatory Activities 

Division, Office of the Comptroller of 

the Currency, 400 7th St. SW., 

Washington, DC 20219. In addition, 

copies of the templates referenced in 

this notice can be found on the OCC’s 

Web site under News and Issuances 

(http://www.occ.treas.gov/tools-forms/

forms/bank-operations/stress-testreporting.html). 

SUPPLEMENTARY INFORMATION: The OCC 

is requesting comment on the following 

revision to an approved information 

collection: 

Title: Company-Run Annual Stress 

Test Reporting Template and 

Documentation for Covered Institutions 

with Total Consolidated Assets of $50 

Billion or More under the Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act. 

OMB Control No.: 1557–0319. 

Description: Section 165(i)(2) of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act 1 (Dodd-Frank 

Act) requires certain financial 

companies, including national banks 

and federal savings associations, to 

conduct annual stress tests 2 and 

requires the primary financial regulatory 

agency 3 of those financial companies to 

issue regulations implementing the 

stress test requirements.4 A national 

bank or Federal savings association is a 

‘‘covered institution’’ and therefore 

subject to the stress test requirements if 

its total consolidated assets are more 

than $10 billion. Under section 

165(i)(2), a covered institution is 

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Federal Register / Vol. 81, No. 24 / Friday, February 5, 2016 / Notices 6337 

5 12 U.S.C. 5365(i)(2)(B). 

6 77 FR 61238 (October 9, 2012) (codified at 12 

CFR 46). 

7 80 FR 71915 (November 17, 2015). 

8http://www.federalreserve.gov/reportforms. 

9 80 FR 55631 (September 16, 2015). 

10See 79 FR 71630 (December 3, 2014) (shifting 

the dates of the annual stress testing cycle). 

11http://www.occ.gov/news-issuances/newsreleases/2013/nr-occ-2013-110.html. 

required to submit to the Board of 

Governors of the Federal Reserve 

System (Board) and to its primary 

financial regulatory agency a report at 

such time, in such form, and containing 

such information as the primary 

financial regulatory agency may 

require.5 On October 9, 2012, the OCC 

published in the Federal Register a final 

rule implementing the section 165(i)(2) 

annual stress test requirement.6 This 

rule describes the reports and 

information collections required to meet 

the reporting requirements under 

section 165(i)(2). These information 

collections will be given confidential 

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

In 2012, the OCC first implemented 

the reporting templates referenced in 

the final rule. See 77 FR 49485 (August 

16, 2012) and 77 FR 66663 (November 

6, 2012). The OCC proposed revisions to 

these templates on November 17, 2015.7

No comments were received on those 

proposed revisions, and the OCC is now 

finalizing those revisions, as described 

below. 

The OCC intends to use the data 

collected to assess the reasonableness of 

the stress test results of covered 

institutions and to provide forwardlooking information to the OCC 

regarding a covered institution’s capital 

adequacy. The OCC also may use the 

results of the stress tests to determine 

whether additional analytical 

techniques and exercises could be 

appropriate to identify, measure, and 

monitor risks at the covered institution. 

The stress test results are expected to 

support ongoing improvement in a 

covered institution’s stress testing 

practices with respect to its internal 

assessments of capital adequacy and 

overall capital planning. 

The OCC recognizes that many 

covered institutions with total 

consolidated assets of $50 billion or 

more are required to submit reports 

using Comprehensive Capital Analysis 

and Review (CCAR) reporting form FR 

Y–14A.8 The OCC also recognizes the 

Board has recently modified the FR Y– 

14A, and, to the extent practical, the 

OCC has kept its reporting requirements 

consistent with the Board’s FR Y–14A 

in order to minimize burden on covered 

institutions.9 The OCC has also revised 

the Scenario Schedule, which collects 

information on scenario variables 

beyond those provided by the OCC. The 

purpose of this revision is to require 

further clarity on the definitions of the 

additional scenario variables. 

Revisions To Reporting Templates for 

Institutions With $50 Billion or More in 

Assets 

The revisions to the DFAST–14A 

reporting templates consist of the 

following: 

• Bank-specific scenario: Covered 

institutions would be required to submit 

bank-specific baseline and stress 

scenarios and projections for 2017 and 

will have the option to do so for 2016; 

• Largest counterparty default: For 

the largest trading covered institutions 

that also submit the Global Market 

Shock scenario, they would be required 

to assume the default of their largest 

counterparty in the supervisory severely 

adverse and adverse scenarios for 2017 

and will have the option to do so for 

2016; 

• Advanced approaches banks: (1) 

Delay incorporation of the supplemental 

leverage ratio for one year and (2) 

indefinitely defer the use of the advance 

approaches for stress testing projections; 

• Reporting Template and Supporting 

Documentation Changes: Clarifying 

instructions, adding data items, deleting 

data items, and redefining existing data 

items. This includes an expansion of the 

information collected in the scenario 

schedule. The proposed revisions also 

include a shift of the as-of date in 

accordance with modifications to the 

OCC’s stress testing rule.10

• These revisions also reflect the 

implementation of the final Basel III 

regulatory capital rule. On July 9, 2013, 

the OCC approved a joint final rule that 

will revise and replace the OCC’s riskbased and leverage capital requirements 

to be consistent with agreements 

reached by the Basel Committee on 

Banking Supervision in ‘‘Basel III: A 

Global Regulatory Framework for More 

Resilient Banks and Banking Systems’’ 

(Basel III).11 Accordingly, the revisions 

reflect the fact that institutions will no 

longer report items based on the preBasel III capital rules. 

Bank-Specific Scenarios 

Covered institutions are required to 

submit bank-specific baseline and bankspecific stress scenarios and associated 

projections for the 2017 annual stress 

testing submission and may do so 

optionally for the 2016 annual stress 

testing submission. While supervisory 

scenarios provide a homogeneous 

scenario and a consistent market-wide 

view of the condition of the banking 

sector, these prescribed scenarios may 

not fully capture all of the risks that 

may be associated with a particular 

institution. The revisions require 

covered institutions to provide bankspecific baseline and bank-specific 

stress scenarios. 

The OCC recognizes that the Board 

requires bank holding companies 

(BHCs) to submit BHC-specific baseline 

and stress scenarios and projections. 

Where OCC-covered institutions also 

submit BHC-specific scenarios, the OCC 

requires that bank-specific scenarios be 

consistent with the BHC-specific 

scenarios. 

Largest Counterparty Default 

Covered institutions that currently 

complete the Global Market Shock will 

also be required to complete the Largest 

Counterparty Default component for the 

2017 submission and have the option to 

do so for the 2016 submission. This is 

currently required by the Board, and the 

OCC is adopting a similar requirement 

to enhance consistency. 

Supplemental Leverage Ratio 

The supplementary leverage ratio 

requirement applies only to covered 

institutions that use the advanced 

approaches to calculate their minimum 

regulatory capital requirements. For 

these covered institutions, the revisions 

delay the incorporation of the 

supplementary leverage ratio in stress 

testing projections for one year. Under 

the revisions, these covered institutions 

are not required to include an estimate 

of the supplementary leverage ratio for 

the stress test cycle beginning on 

January 1, 2016. The Board has adopted 

a similar delay. 

Advanced Approaches 

Covered institutions have noted that 

the use of advanced approaches in stress 

test rules would require significant 

resources and would introduce 

complexity and opacity. In light of the 

concerns raised by these covered 

institutions, and pending a review of 

how the stress test rules interact with 

the regulatory capital rules as described 

above, the revisions delay until further 

notice the use of the advanced 

approaches for calculating risk-based 

capital requirements for purposes of the 

capital plan and stress test rule. 

Other Reporting Template and 

Instruction Changes 

The revisions to the DFAST–14A 

consist of clarifying instructions, adding 

and removing schedules, adding, 

deleting, and modifying existing data 

items, and altering the as-of dates. These 

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6338 Federal Register / Vol. 81, No. 24 / Friday, February 5, 2016 / Notices 

changes (1) increase consistency 

between the DFAST–14A with the FR 

Y–14A, Call Report, FFIEC 101, and 

FFIEC 102; (2) remove the requirement 

to calculate tier 1 common capital and 

the tier 1 common ratio; (3) shift the asof dates by one quarter in accordance 

with the modifications to the stress test 

rules; (4) modify and expand the 

supporting documentation 

requirements; and (5) increase the 

historical information collected in the 

scenario schedule in order to facilitate 

comparisons of the data. Furthermore, 

the Board is currently collecting 

information for the Summary Schedule 

via XML scheme technology, and the 

OCC will use a similar format to 

enhance consistency and reduce 

regulatory burden. Technical details on 

these forms can be found under 

technical instructions at http://

www.occ.gov/tools-forms/forms/bankoperations/stress-test-reporting.html. 

Schedule A (Summary, General RWA)— 

Deletion 

This schedule has been removed in 

accordance with the elimination of the 

use of the tier 1 common ratio, effective 

for the 2016 DFAST submission. 

However, in order to mitigate 

operational issues and allow for 

appropriate time to adjust internal 

systems to accommodate changes this 

schedule remains part of the technical 

XML instructions for the 2016 DFAST 

submission. 

Schedule A (Summary, Standardized 

RWA)—Revisions 

This schedule has been modified to 

increase consistency with the FFIEC 

102. Specifically, the items of the 

existing market risk-weighted asset 

portion have been replaced with the 

appropriate items from the FFIEC 102. 

There are also a number of other 

technical changes; some will be 

required for the 2016 DFAST 

submission and others will be required 

for the 2017 submission. See the final 

instructions for specific details. 

Schedule A (Summary, Capital)— 

Revisions 

The OCC has removed certain items 

related to tier 1 common capital, 

effective for the 2016 DFAST 

submission. However, in order to 

mitigate operational issues and allow for 

appropriate time to adjust internal 

systems to accommodate changes, this 

schedule remains part of the technical 

XML instructions for the DFAST 2016 

submission. Additionally, effective for 

the 2017 DFAST submission (previously 

proposed to be effective for the 2016 

DFAST submission), the OCC has added 

one item that captures the aggregate 

non-significant investments in the 

capital of unconsolidated financial 

institutions in the form of common 

stock and separating two items related 

to deferred tax assets into the amount 

before valuation allowances and the 

associated valuation allowance. The 

additional information from these 

changes results in two existing items 

converting to derived items based on the 

additional information. 

Schedule A (Summary, Re-Purchase)— 

Revisions 

This schedule has been removed to 

reduce reporting burden, effective for 

the 2017 DFAST submission. 

Schedule A (Summary, ASC 310–30)— 

Deletion 

This schedule has been removed to 

reduce reporting burden, effective for 

the 2017 DFAST submission. 

Schedule A (Summary, PPNR Metrics)— 

Revisions 

In order to fully align the schedule 

with the stress scenarios, the beta 

information will be collected according 

to the scenario instead of the current 

‘‘normal environment’’ requirement, 

effective for the 2016 DFAST 

submission. The Board has delayed 

implementation of this change, and in 

order to maintain consistency between 

the DFAST–14A and the FR Y–14A, the 

effective date of all modifications to the 

PPNR Metrics schedule will be delayed 

until the 2017 DFAST submission. 

Business Plan Changes Schedule— 

Addition 

The OCC has added a requirement to 

use the existing summary schedule to 

collect the net effects of an intended 

business plan change on a respondent’s 

asset, liability, and capital projections. 

Counterparty Credit Risk Schedule— 

Deletion 

This schedule has been removed to 

reduce reporting burden effective for the 

2016 DFAST submission. Aggregate 

counterparty credit risk information will 

continue to be obtained through the 

Summary Schedule (Schedule A). 

Scenario Schedule—Revisions 

Information about additional 

scenarios that are used by covered 

institutions is currently submitted in a 

format with limited structure, which 

makes it difficult for the OCC to 

evaluate. As such, the revisions require 

that covered institutions provide three 

more historical quarters in addition to 

the currently required most recent 

historical quarter of actual data values 

for each additional variable submitted. 

The revisions also provide additional 

instructions on variable naming 

conventions and other appropriate 

standardizations in order to facilitate 

more streamlined electronic processing 

of the data. In addition to the proposed 

schedule, the OCC is adding three new 

items to this final schedule in order to 

provide further standardized 

classification system for each variable 

submitted. 

Regulatory Capital Transitions 

Schedule—Revisions 

The OCC has modified this schedule 

by removing projected year six from the 

projection period. 

Regulatory Capital Instruments 

Schedule—Revisions 

The OCC has modified this schedule 

by removing line items corresponding to 

the general risk-based capital rules. 

Type of Review: Revision. 

Affected Public: Businesses or other 

for-profit. 

Estimated Number of Respondents: 

22. 

Estimated Total Annual Burden: 

12,254 hours. 

The OCC believes that the systems 

covered institutions use to prepare the 

FR Y–14 reporting templates to submit 

to the Board will also be used to prepare 

the reporting templates described in this 

notice. Comments submitted in 

response to this notice will be 

summarized and included in the request 

for OMB approval. All comments will 

become a matter of public record. 

Comments continue to be invited on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

OCC, including whether the information 

has practical utility; 

(b) The accuracy of the OCC’s 

estimate of the burden of the collection 

of information; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

the collection on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology; and 

(e) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

Dated: February 1, 2016. 

Stuart Feldstein, 

Director, Legislative and Regulatory Activities 

Division. 

[FR Doc. 2016–02212 Filed 2–4–16; 8:45 am] 

BILLING CODE 4810–33–P 

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