63626 Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices 

1SLHCs are not subject to Dodd-Frank Act annual 

company-run stress testing requirements until the 

calendar year after SLHCs become subject to 

regulatory capital requirements. All SLHCs except 

those substantially engaged in insurance 

underwriting or commercial activities are subject to 

capital requirements beginning in 2015. These 

‘‘covered SLHCs’’ are required to report using the 

FR Y–16 beginning in March 2017 (stress test asof date September 30, 2016). 

2 ‘‘Covered companies’’ are defined as BHCs with 

at least $50 billion in total consolidated assets and 

nonbank systemically important financial 

institutions, subject to annual supervisory stress 

tests and semi-annual company-run stress tests. 

in that area constituted a violation and 

whether an on-shift examination of 

another area was required.) 

Any person attending this meeting 

who requires special accessibility 

features and/or auxiliary aids, such as 

sign language interpreters, must inform 

the Commission in advance of those 

needs. Subject to 29 CFR 2706.150(a)(3) 

and 2706.160(d). 

CONTACT PERSON FOR MORE INFORMATION: 

Emogene Johnson (202) 434–9935/(202) 

708–9300 for TDD Relay/1–800–877– 

8339 for toll free. 

Emogene Johnson, 

Administrative Assistant. 

[FR Doc. 2014–25494 Filed 10–22–14; 4:15 pm] 

BILLING CODE 6735–01–P 

FEDERAL MINE SAFETY AND HEALTH 

REVIEW COMMISSION 

Sunshine Act Notice 

October 22, 2014. 

TIME AND DATE: 10:00 a.m., Wednesday, 

October 29, 2014. 

PLACE: The Richard V. Backley Hearing 

Room, Room 511N, 1331 Pennsylvania 

Avenue NW., Washington, DC 20004 

(entry from F Street entrance). 

STATUS: Open. 

MATTERS TO BE CONSIDERED: The 

Commission will hear oral argument in 

the matter Secretary of Labor v. Black 

Beauty Coal Co., Docket Nos. LAKE 

2008–378–R, et al. (Issues include 

whether the Administrative Law Judge 

erred in concluding that the resumption 

of mining in an area following a roof fall 

in that area constituted a violation and 

whether an on-shift examination of 

another area was required.) 

Any person attending this oral 

argument who requires special 

accessibility features and/or auxiliary 

aids, such as sign language interpreters, 

must inform the Commission in advance 

of those needs. Subject to 29 CFR 

2706.150(a)(3) and 2706.160(d). 

CONTACT PERSON FOR MORE INFORMATION: 

Emogene Johnson (202) 434–9935/(202) 

708–9300 for TDD Relay/1–800–877– 

8339 for toll free. 

Emogene Johnson, 

Administrative Assistant. 

[FR Doc. 2014–25493 Filed 10–22–14; 4:15 pm] 

BILLING CODE 6735–01–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. 

SUMMARY: Notice is hereby given of the 

final approval of a proposed information 

collection by the Board of Governors of 

the Federal Reserve System (Board) 

under OMB delegated authority, as per 

5 CFR 1320.16 (OMB Regulations on 

Controlling Paperwork Burdens on the 

Public). 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 Federal Reserve 

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. 

FOR FURTHER INFORMATION CONTACT: 

Federal Reserve Board Acting Clearance 

Officer—John Schmidt—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. 

Final approval under OMB delegated 

authority of the extension for three 

years, with revision, of the following 

report: 

Report title: Annual Company-Run 

Stress Test information collection. 

Agency form number: FR Y–16. 

OMB control number: 7100–0356. 

Effective Date: March 31, 2015. 

Frequency: Annually. 

Reporters: Bank holding companies 

(BHCs), savings and loan holding 

companies (SLHCs) 1 with average total 

consolidated assets of greater than $10 

billion but less than $50 billion, and any 

affiliated or unaffiliated state member 

bank (SMB) with average total 

consolidated assets of more than $10 

billion but less than $50 billion 

excluding SMB subsidiaries of covered 

companies.2

Estimated annual reporting hours: 

38,623 hours. 

Estimated average hours per response: 

469 hours; 3,600 hours, one-time 

implementation. 

Number of respondents: BHCs, 46; 

SLHCs, 11; SMBs, 10; and one-time 

implementation, 2. 

General description of report: This 

information collection is authorized 

pursuant to Section 165(i)(2) of the 

Dodd-Frank Act that specifically 

authorizes the Board to issue regulations 

implementing the annual stress testing 

requirements for its supervised 

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

More generally, with respect to BHCs, 

Section 5(c) of the Bank Holding 

Company Act, 12 U.S.C. 1844(c), 

authorizes the Board to require a BHC 

and any subsidiary ‘‘to keep the Board 

informed as to—(i) its financial 

condition, [and] systems for monitoring 

and controlling financial and operating 

risks. . . .’’ Section 9(6) of the Federal 

Reserve Act, 12 U.S.C. 324, requires 

SMBs to make reports of condition to 

their supervising Reserve Bank in such 

form and containing such information 

as the Board may require. Finally, with 

respect to SLHCs, under Section 312 of 

the Dodd-Frank Act, 12 U.S.C. 5412, the 

Board succeeded to all powers and 

authorities of the OTS and its Director, 

including the authority to require 

SLHCs to ‘‘file . . . such reports as may 

be required . . . in such form and for 

such periods as the [agency] may 

prescribe.’’ 12 U.S.C. 1467a(b)(2). 

Obligation to Respond is Mandatory: 

Section 165(i)(2)(A) provides that 

‘‘financial companies that have total 

consolidated assets [meeting the asset 

thresholds] . . . and are regulated by a 

primary Federal financial regulatory 

agency shall conduct annual stress 

tests.’’ Section 165(i)(2)(B) provides that 

a company required to conduct annual 

stress tests ‘‘shall submit a report to the 

Board of Governors and to its primary 

financial regulatory agency at such time, 

in such form, and containing such 

information as the primary financial 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices 63627 

3See Regulatory Capital Rules: Regulatory 

Capital, Implementation of Basel III, Capital 

Adequacy, Transition Provisions, Prompt Corrective 

Action, Standardized Approach for Risk-weighted 

Assets, Market Discipline and Disclosure 

Requirements, Advanced Approaches Risk-Based 

Capital Rule, and Market Risk Capital Rule (July 2, 

2013), available at: http://www.federalreserve.gov/

newsevents/press/bcreg/20130702a.htm. 

4A banking organization is subject to the 

advanced approaches rule if it has consolidated 

assets greater than or equal to $250 billion, if it has 

total consolidated on-balance sheet foreign 

exposures of at least $10 billion, or if it elects to 

apply the advanced approaches rule. 

5See final rule on annual company-run stress test 

requirements for banking organizations with total 

consolidated assets over $10 billion other than 

covered companies 77 FR 62378 (October 12, 2012) 

(codified at 12 CFR part, 252 subpart H). 

6See 78 FR 59791 (September 30, 2013). 

7The reporting submission date for the March 

2015 Call Report is 30 calendar days after March 31, 

while the submission date for the March 2015 FR 

Y–9C is 40 calendar days after March 31. 

regulatory agency shall require.’’ 

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

Confidentiality: As noted under 

Section 165(i)(2)(C)(iv), companies 

conducting annual stress tests under 

these provisions are ‘‘require[d] . . . to 

publish a summary of the results of the 

required stress tests.’’ 12 U.S.C. 

5365(i)(2)(C)(iv). Regarding the 

information collected by the Board, 

however, as such information will be 

collected as part of the Board’s 

supervisory process, it may be accorded 

confidential treatment under Exemption 

8 of the Freedom of Information Act 

(FOIA), 5 U.S.C. 552(b)(8). This 

information also is the type of 

confidential commercial and financial 

information that may be withheld under 

Exemption 4 of FOIA, 5 U.S.C. 

552(b)(4). As required information, it 

may be withheld under Exemption 4 

only if public disclosure could result in 

substantial competitive harm to the 

submitting institution, under National 

Parks & Conservation Ass’n v. Morton, 

498 F.2d 765 (D.C. Cir. 1974). 

Abstract: The annual FR Y–16 report 

collects quantitative projections of 

income, losses, assets, liabilities, and 

capital across three scenarios provided 

by the Board (baseline, adverse, and 

severely adverse) and qualitative 

supporting information on the 

methodologies and processes used to 

develop these internal projections. 

Current Actions: On July 15, 2014 the 

Federal Reserve published a notice in 

the Federal Register (79 FR 41276) 

requesting public comment for 60 days 

on the extension, with revision, of the 

FR Y–16. The Federal Reserve proposed 

the following revisions and 

clarifications to the FR Y–16 report for 

the report submission due annually 

beginning on March 31, 2015: (1) Add 

common equity tier 1 capital as a data 

item, (2) add common equity tier 1 risk 

based capital ratio as a data item, and 

(3) modify the reporting instructions to 

clarify a number of items. The comment 

period for this notice expired on 

September 15, 2014. The Federal 

received one comment letter addressing 

the proposed revisions of this 

information collection. The comment is 

summarized and addressed below. 

Summary of Public Comment 

The Federal Reserve received one 

comment letter on the proposed 

revisions to the FR Y–16 from a 

modeling service provider. The 

commenter questioned the introduction 

of the new regulatory capital, riskweighted asset, and regulatory capital 

ratio calculations in the FR Y–16 for the 

March 2015 report; asserting that $10– 

50 billion companies will lack relevant 

data for the proposed new capital items 

and definitions in advance of when 

these items are required to be reported 

in the Consolidated Report of Condition 

and Income (Call Report: OMB No. 

7100–0036) and the Consolidated 

Financial Statements for Holding 

Companies (FR Y–9C: OMB No. 7100– 

0128), which will lead to inaccurate and 

misleading company projections. 

Detailed Discussion of Public Comment 

A. Proposed Revisions 

On July 2, 2013, the Federal Reserve 

approved revised risk-based and 

leverage capital requirements for 

banking organizations that implement 

the Basel III regulatory capital reforms 

and certain changes required by the 

Dodd-Frank Act (revised capital 

framework).3 The revised capital 

framework introduces the new common 

equity tier 1 capital component and a 

new common equity tier 1 risk-based 

capital ratio, revises the definition of 

regulatory capital items, and changes 

the calculation of risk-weighted assets. 

All banking organizations that are not 

subject to the advanced approaches rule 

must begin to comply with the revised 

capital framework beginning on January 

1, 2015.4 Under the Federal Reserve’s 

final stress test rule,5 banking 

organizations would be required to 

reflect the new capital rules, including 

the new common equity tier 1 capital 

component and ratio, in their companyrun stress test planning horizon as the 

revised capital framework becomes 

applicable. However, on September 30, 

2013, the Federal Reserve provided 

BHCs and SMBs with total consolidated 

assets of more than $10 billion but less 

than $50 billion (other than state 

member banks that are subsidiaries of 

BHCs with total consolidated assets of 

$50 billion or more) with a one-year 

transition period to incorporate the 

revised capital framework into their 

company-run stress tests (interim final 

stress test rule).6 Therefore, the FR Y– 

16 did not require companies to include 

the effects of the revised capital 

framework for the initial 2014 stress test 

cycle. 

The Federal Reserve proposed to 

revise the FR Y–16 by adding a common 

equity tier 1 capital data item to the 

Balance Sheet Schedule for each 

scenario and a common equity tier 1 

risk-based capital ratio data item to the 

Summary Schedule and the Balance 

Sheet Schedule for each scenario in 

order to reflect the requirements of the 

revised capital framework over the 

stress test planning horizon. These 

revisions would be effective for the 2015 

stress test cycle (with reporting in 

March 2015). In addition, the Federal 

Reserve proposed to clarify the FR Y–16 

instructions to emphasize that 

companies should transition to the 

revised capital framework requirements 

in its company-run stress test 

projections in the quarter in which the 

requirements become effective. 

Specifically, companies would be 

required to transition to the revised 

capital framework and begin including 

the common equity tier 1 capital data 

item and common equity tier 1 riskbased capital ratio data item in 

projected quarter two (1st quarter 2015) 

through projected quarter nine (4th 

quarter 2016) for each supervisory 

scenario for the 2015 stress test cycle to 

be reported by March 31, 2015. 

The commenter indicated that 

requiring the use of the revised capital 

framework over the planning horizon in 

the March 2015 FR Y–16 report will 

introduce volatility and ambiguity of a 

respondent’s processes and results. 

Specifically, by requiring the reporting 

of the common equity tier 1 capital 

component and ratio beginning with 

projected quarter two (1st quarter 2015) 

of the planning horizon before these 

items are reported in the Call Report 

and the FR Y–9C will cause the 

companies to rely on pro forma 

estimates that will lead to inaccurate 

and misleading projections.7 In 

addition, the commenter asserted that 

because the changes to the Call Report 

and FR Y–9C risk-weighted asset 

schedules are in a proposed status, there 

will be difficulties for companies to 

produce accurate estimates without 

further guidance on the transition to the 

revised capital framework for this FR Y– 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
63628 Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices 

8See 79 FR 35634 (June 23, 2014) and 79 FR 

45808 (August 6, 2014). 

9Per the Board’s final stress test rule, $10–50 

billion companies are required to publicly disclose 

the beginning value, ending value, and minimum 

value of each regulatory capital ratio over the 

planning horizon. 

16 line item.8 Lastly, the commenter 

indicated that the required public 

disclosure of the regulatory capital 

ratios over the planning horizon under 

different capital rules will cause 

confusion among bank shareholders and 

the general public.9

The Federal Reserve believes that the 

proposed additional items to the FR Y– 

16 would not place an undue burden on 

$10–50 billion institutions as they have 

already been given additional time to 

incorporate the revised capital 

framework into their company-run 

stress tests. The interim final stress test 

rule on September 30, 2013 specifically 

provided $10–50 billion banking 

organizations with a one-year transition 

period to incorporate the revised capital 

framework into their company-run 

stress tests. The one-year transition 

period decreased the operational 

complexity and risk of error for these 

companies for the initial 2014 stress test 

cycle by allowing them to focus on 

implementing stress testing processes 

without reflecting the revised capital 

rules over the planning horizon. The 

one-year transition also allowed 

companies additional time to evaluate 

the revised capital framework’s effect on 

their regulatory capital items reported in 

the Call Report and FR Y–9C. Further, 

the Call Report and FR Y–9C regulatory 

capital schedules were revised effective 

March 2014 to reflect the revised capital 

framework for regulatory capital items 

for advanced approaches institutions; 

all other institutions, including $10–50 

billion institutions, are required to 

report the same revised regulatory 

capital schedule for March 31, 2015. In 

addition, the FR Y–16 reporting form 

and instructions has been updated to 

reference the applicable Call Report and 

FR Y–9C report items that should be 

reported over the planning horizon, 

including the new items that were 

created to capture the revised capital 

framework. The Federal Reserve will 

adjust the FR Y–16 schedules to be 

consistent with the final FR Y–9C and 

Call Report risk-weighted asset schedule 

changes once they are published. These 

adjustments are necessary to align the 

subcomponents of standardized riskweighted assets with total standardized 

risk-weighted assets and will likely 

alleviate confusion about calculating 

projected total risk-weighted assets over 

the planning horizon. Lastly, the public 

disclosure by companies of the stress 

test results using the new capital rules 

applicable in the projected quarters of 

the planning horizon is required by the 

Board’s final stress test rule and the 

Federal Reserve believes that this public 

disclosure will be informative to the 

public. 

In summary, the Federal Reserve will 

implement the FR Y–16 data items for 

the March 2015 report to reflect the 

revised capital framework as proposed. 

Specifically, the Federal Reserve will 

add the common equity tier 1 capital 

data item to the Balance Sheet Schedule 

for each scenario and a common equity 

tier 1 risk-based capital ratio data item 

to the Summary Schedule and the 

Balance Sheet Schedule for each 

scenario. The Office of the Comptroller 

of the Currency and Federal Deposit 

Insurance Corporation plan to make 

similar changes to their $10–50 billion 

company Dodd-Frank Act stress test 

reporting forms (OCC DFAST 10–50 

report: OMB No. 1557–0311 and FDIC 

DFAST 10–50 report OMB No. 3064– 

0189) to reflect the revised capital 

framework for the March 2015 report. 

B. Technical Changes/Other Items 

In response to a few technical, nonsubstantive comments received, some 

additional minor changes will be made 

in the final reporting form and 

instructions. These changes include 

clarified reporting instructions for the 

disallowed deferred tax asset and 

unrealized gains (losses) on availablefor-sale (AFS) securities line items and 

updated descriptions of the total capital 

and total risk-based capital line items. 

Board of Governors of the Federal Reserve 

System, October 20, 2014. 

Robert deV. Frierson, 

Secretary of the Board. 

[FR Doc. 2014–25289 Filed 10–23–14; 8:45 am] 

BILLING CODE 6210–01–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 (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 

notices are set forth in paragraph 7 of 

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

The notices are available for 

immediate inspection at the Federal 

Reserve Bank indicated. The notices 

also will be available for inspection at 

the offices of the Board of Governors. 

Interested persons may express their 

views in writing to the Reserve Bank 

indicated for that notice or to the offices 

of the Board of Governors. Comments 

must be received not later than 

November 7, 2014. 

A. Federal Reserve Bank of Chicago 

(Colette A. Fried, Assistant Vice 

President) 230 South LaSalle Street, 

Chicago, Illinois 60690–1414: 

1. The 2011 Colis Delta Trust, 

Oakbrook, Illinois, and George P. Colis; 

John N. Colis; Valerie Colis-Livaditus; 

and Leslie Colis-Ward, as trustees, to 

retain voting shares of Oxford Financial 

Corporation, and thereby indirectly 

retain voting shares of Oxford Bank and 

Trust, both in Oak Brook, Illinois. 

Board of Governors of the Federal Reserve 

System, October 20, 2014. 

Michael J. Lewandowski, 

Associate Secretary of the Board. 

[FR Doc. 2014–25264 Filed 10–23–14; 8:45 am] 

BILLING CODE 6210–01–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 (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 

notices are set forth in paragraph 7 of 

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

The notices are available for 

immediate inspection at the Federal 

Reserve Bank indicated. The notices 

also will be available for inspection at 

the offices of the Board of Governors. 

Interested persons may express their 

views in writing to the Reserve Bank 

indicated for that notice or to the offices 

of the Board of Governors. Comments 

must be received not later than 

November 10, 2014. 

A. Federal Reserve Bank of Richmond 

(Adam M. Drimer, Assistant Vice 

President) 701 East Byrd Street, 

Richmond, Virginia 23261–4528: 

1. Kenneth R. Lehman, Arlington, 

Virginia; to acquire voting shares of 

Village Bank & Trust Financial Corp., 

and thereby indirectly acquire voting 

shares of Village Bank, both in 

Midlothian, Virginia. 

B. Federal Reserve Bank of Atlanta 

(Chapelle Davis, Assistant Vice 

President) 1000 Peachtree Street NE., 

Atlanta, Georgia 30309: 

1. Stock Holdings of Delaware, LLC, 

Fort Walton Beach, Florida, acting 

individually, and in concert with a 


asabaliauskas on DSK5VPTVN1PROD with NOTICES