[Federal Register Volume 79, Number 225 (Friday, November 21, 2014)]
[Notices]
[Pages 69476-69477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27506]


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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

[[Page 69477]]

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 revision, 
without extension, of the following report:
    Report title: Capital and Asset Report for Foreign Banking 
Organizations.
    Agency form number: FR Y-7Q.
    OMB control number: 7100-0125.\1\
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    \1\ Also included in this family of reports are the following 
reports, which are not being revised: the Financial Statements of 
U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations (FR 
Y-7N) and the Abbreviated Financial Statements of U.S. Nonbank 
Subsidiaries Held by Foreign Banking Organizations (FR Y-7NS).
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    Frequency: Quarterly and annually.
    Reporters: Foreign Banking Organizations.
    Estimated annual reporting hours: FR Y-7Q (quarterly): 763 hours; 
FR Y-7Q (annually): 65 hours.
    Estimated average hours per response: FR Y-7Q (quarterly): 1.75 
hours; FR Y-7Q (annually): 1.5 hours.
    Number of respondents: FR Y-7Q (quarterly): 109; FR Y-7Q 
(annually): 43.
    General description of report: This information collection is 
mandatory (12 U.S.C. 1844(c), 3106(c) and 3108)). Overall, the Federal 
Reserve does not consider these data to be confidential. However, 
individual respondents may request confidential treatment for any of 
these reports pursuant to sections (b)(4) and (b)(6) of the Freedom of 
Information Act (5 U.S.C. 522(b)(4) and (b)(6)). The applicability of 
these exemptions would need to be determined on a case-by-case basis.
    Abstract: The FR Y-7Q collects consolidated regulatory capital 
information from all FBOs either quarterly or annually. The FR Y-7Q is 
filed quarterly by FBOs that have effectively elected to become 
financial holding companies (FHCs) and by FBOs that have total 
consolidated assets of $50 billion or more, regardless of FHC status. 
All other FBOs file the FR Y-7Q annually.
    Current Actions: On June 18, 2014, the Federal Reserve published a 
notice in the Federal Register (79 FR 34753) requesting public comment 
for 60 days on the revision to the FR Y-7Q. The comment period for this 
notice expired on August 18, 2014. The Federal Reserve received one 
comment letter addressing the proposed revision of this information 
collection. The comment is summarized and addressed below.

Summary of Public Comment

    The Federal Reserve received one comment letter regarding the 
proposed revision to the FR Y-7Q from one industry association. The 
commenter asked for an explanation of the instructions for calculating 
the proposed new data item, Total U.S. non-branch assets, and suggested 
an alternative approach for calculating the new item.

Detailed Discussion of Public Comment and Recommended Response

    Under the proposal, in December 2014, the Federal Reserve proposed 
to collect a new data item, Total U.S. non-branch assets, to determine 
whether an FBO meets the threshold for formation of a U.S. IHC. This 
item would collect the sum of the total combined assets of a top-tier 
FBO's top-tier U.S. domiciled affiliates.\2\ In situations where a top-
tier U.S. domiciled affiliate is a parent of one or more subsidiaries, 
the total consolidated assets of the affiliate would include the assets 
of the affiliate and its subsidiaries, in accordance with U.S. 
Generally Accepted Accounting Principles (GAAP), and the total 
consolidated assets (or total assets, as applicable) of each top-tier 
U.S. domiciled affiliate would be combined. In situations where a top-
tier U.S. domiciled subsidiary is not consolidated with the FBO for 
GAAP purposes, that entity would be accounted for under the equity 
method and the sum of the amount of the investments would be included 
in the sum of the total combined assets of top-tier U.S. domiciled 
affiliates.
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    \2\ Total combined assets of the top-tier FBO's U.S. domiciled 
affiliates should exclude the assets of section 2(h)(2) companies as 
defined in section 2(h)2 of the Bank Holding Company Act (12 U.S.C. 
1841(h)(2)) and DPC branch subsidiaries. This item excludes the 
assets of U.S. branches and agencies.
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    The Federal Reserve received one comment on the proposed new item, 
Total U.S. non-branch assets. To produce the new item, the commenter 
suggested subtracting total U.S. branch and agency assets from an 
existing report item, Total combined assets of U.S. operations, net of 
intercompany balances and transaction between U.S. domiciled 
affiliates, branches, and agencies. However, the modification suggested 
by the commenter would result in FBOs understating their U.S. non-
branch assets because the U.S. subsidiaries' asset exposures to 
affiliated U.S. branches and agencies would be excluded from the 
calculation. As described in the preamble to Regulation YY, the final 
rule requires an FBO to reduce its U.S. non-branch asset by the amount 
corresponding to any balances and transactions between any top tier 
U.S. subsidiaries that would be eliminated in consolidation.\3\ 
However, the final rule does not permit an FBO to reduce its U.S. non-
branch asset by the amount corresponding to balances and transactions 
between the U.S. subsidiaries and its U.S. branches and agencies or 
non-U.S. affiliates.\4\
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    \3\ 79 FR 17240, 17273 (March 27, 2014).
    \4\ 12 CFR 252.152(b)(2).
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    After careful consideration of the suggested alternative and for 
the reasons discussed above, the Federal Reserve will implement the 
proposed line item without modification.

    Board of Governors of the Federal Reserve System, November 17, 
2014.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2014-27506 Filed 11-20-14; 8:45 am]
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