This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

69365 

Vol. 79, No. 225 

Friday, November 21, 2014 

1 77 FR 62417 (Oct. 15, 2012) (FDIC); 77 FR 61238 

(October 9, 2012) (OCC); 77 FR 62396 (October 12, 

2012) (Board). 

2 12 CFR 325.202(d). 

3On an annual basis, prior to the start of the 

stress testing period and no later than November 15, 

the FDIC provides to covered banks a minimum of 

three economic scenarios (baseline, adverse, and 

severely adverse) and additional scenarios as the 

FDIC determines appropriate for the covered banks 

to use in performing their stress tests. 

4 In addition, certain covered banks with 

significant trading activities (as determined by the 

FDIC) may be required to include a trading and 

counterparty component for the scenarios used in 

their stress tests. 

5 12 CFR 325.204(a); 325.206(a); 325.207(a). 

6 12 CFR 325.204(a); 325.206(a); 325.207(a). 

7 12 CFR 325.207(b). 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 325 

RIN 3064–AE18 

Annual Stress Test 

AGENCY: Federal Deposit Insurance 

Corporation. 

ACTION: Final rule. 

SUMMARY: The Federal Deposit 

Insurance Corporation (the Corporation 

or FDIC) is issuing a final rule that 

implements proposed revisions to 

regulations regarding the annual stress 

testing requirements for state 

nonmember banks and state savings 

associations with total consolidated 

assets of more than $10 billion (covered 

banks). The regulations, which 

implement section 165(i)(2) of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (the DoddFrank Act), require covered banks to 

conduct annual stress tests, report the 

results of such stress tests to the 

Corporation and the Board of Governors 

of the Federal Reserve System (the 

Board), and publicly disclose a 

summary of the results of the required 

stress tests. The final rule revises the 

2016 stress test cycle and for years 

thereafter to begin on January 1 of the 

calendar year rather than October 1, as 

is provided for by the current rule. 

Additionally, the final rule modifies the 

‘‘as of’’ dates for financial data (that 

covered banks will use to perform their 

stress tests) as well as the reporting 

dates and public disclosure dates of the 

annual stress tests for both $10 billion 

to $50 billion covered banks and over 

$50 billion covered banks. 

DATES: This final rule is effective 

January 1, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Ryan Sheller, Section Chief, (202) 412– 

4861, Large Bank Supervision, Division 

of Risk Management and Supervision; 

Mark G. Flanigan, Supervisory Counsel, 

(202) 898–7426, Grace Pyun, Senior 

Attorney, (202) 898–3609, or Benjamin 

Klein, Senior Attorney, (202) 898–7027, 

Legal Division, Federal Deposit 

Insurance Corporation, 550 17th Street 

NW., Washington, DC, 20429. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 165(i) of the Dodd-Frank Act 

requires two types of stress tests. 

Section 165(i)(1) requires the Board to 

conduct annual stress tests of holding 

companies with $50 billion or more in 

total consolidated assets (‘‘supervisory 

stress tests’’). Section 165(i)(2) of the 

Dodd-Frank Act requires the federal 

banking agencies to issue regulations 

requiring financial companies with 

more than $10 billion in total 

consolidated assets to conduct annual 

stress tests themselves (company-run 

stress tests), and it requires that the 

implementing regulations issued by 

each of the federal banking agencies be 

consistent and comparable with each 

other. In October 2012, the FDIC, the 

Office of the Comptroller of the 

Currency (the OCC), and the Board 

(collectively the Agencies) issued final 

rules 1 implementing the company-run 

stress tests requirements. The FDIC’s 

final rule was codified as part 325, 

subpart C of the FDIC rules and 

regulations (the Annual Stress Test 

rule). The Annual Stress Test rule 

requires FDIC-insured state nonmember 

banks and FDIC-insured state-chartered 

savings associations with total 

consolidated assets of more than $10 

billion to conduct annual stress tests. 

Part 325, subpart C identifies two 

categories of covered banks. The first 

category includes state nonmember 

banks and state savings associations that 

have between $10 billion and $50 

billion in total consolidated assets, and 

the second category includes state 

nonmember banks and state savings 

associations with over $50 billion in 

total consolidated assets.2 For both 

categories of covered banks, the 

company-run stress test must assess the 

potential impact of different scenarios 3

on the capital of the covered bank and 

certain related items over a forwardlooking, nine-quarter planning horizon, 

taking into account all relevant 

exposures and activities.4

Part 325, subpart C also provides 

timeframes for the testing, reporting, 

and publication of the company-run 

stress tests, which vary depending on 

the category into which the covered 

bank falls. Covered banks use financial 

data as of September 30 (the ‘‘as of’’ 

date) of the preceding calendar year to 

make projections that estimate their 

financial position under the different 

stress scenarios, and to report and 

publish the results of their annual stress 

test in the following calendar year. 

Covered banks with $10 billion to $50 

billion in total assets must report the 

results of their stress tests by March 31 

and publish a summary of their results 

between June 15 and June 30.5 Over $50 

billion covered banks are required to 

report the results of their annual stress 

test by January 5 of each calendar year 

and publish a summary of their results 

between March 15 and March 31.6

These testing, reporting, and publication 

milestones are consistent across the 

federal banking agencies’ respective 

annual stress testing rules. 

A covered bank that is a consolidated 

subsidiary of a bank holding company 

or savings and loan holding company 

subject to company-run stress test 

requirements administered by the Board 

is generally permitted to publish 

abbreviated disclosures of its annual 

stress test results with the parent 

holding company’s summary and on the 

same timeline as the parent holding 

company.7 The FDIC requires that 

specific information be included in the 

disclosure to reflect the changes in the 

covered bank’s capital ratios and the 

reasons for those changes. 

Since the publication and codification 

of the Annual Stress Test rule, the 

Agencies have received feedback from 

the industry regarding the resource 


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69366 Federal Register / Vol. 79, No. 225 / Friday, November 21, 2014 / Rules and Regulations 

8 79 FR 37235 (July 1, 2014) (FDIC); 79 FR 37231 

(OCC); 79 FR 37420 (Board). 

constraints that covered banks face at 

the beginning and end of the calendar 

year arising from competing regulatory 

and reporting deadlines. Furthermore, 

the Agencies are aware that conducting 

stress testing during the last quarter of 

a calendar year may also make it 

difficult for covered banks to make 

timely modifications to strategic and 

operational plans for the following year 

that address any issues identified in the 

company-run stress test results. 

For these reasons, on July 1, 2014, the 

FDIC, in coordination with the Board 

and the OCC, issued a notice of 

proposed rulemaking (the NPR) in the 

Federal Register that proposed to 

modify the dates of the stress test cycle 

and the corresponding reporting and 

publication deadlines. The NPR 

proposed to shift the testing, reporting, 

and disclosure dates for the 2016 

company-run stress test cycle and each 

annual cycle thereafter.8 The 

Corporation is now issuing a final rule 

modifying the dates of the stress test 

cycle and the corresponding reporting 

and publication deadlines as proposed 

in the NPR, as described further below. 

The final rule will be consistent with 

final rules issued by the OCC and Board 

making the same date modifications to 

the stress testing cycle, agency 

reporting, and public disclosure. 

II. Comments Received 

The NPR solicited public comment on 

all aspects of the proposed rule. The 

NPR’s comment period ended on 

September 2, 2014, and the FDIC 

received five comment letters. 

Comments were submitted by, or on 

behalf of, individuals, banks and bank 

holding companies, and banking and 

financial services industry trade groups 

and associations. The commenters 

generally supported the proposed 

revisions in the NPR, but also requested 

additional revisions to the proposed 

timeline shifts. 

The commenters supported the 

proposed timing shift for the start of the 

stress test cycles to address the 

challenges to banking organizations and 

personnel presented at the end of the 

calendar year. Some commenters 

encouraged the FDIC to accelerate 

implementation of the proposed 

changes so that the adjusted timeframes 

apply beginning with the 2015 stress 

test cycle, rather than with the 2016 

stress test cycle. The final rule adopts 

the proposed revisions to the start of the 

stress test cycle and related dates, but 

does not accelerate the implementation 

of the modified dates. The transition 

period is necessary to give the FDIC and 

banking organizations sufficient time to 

revise reporting schedules and change 

internal systems. As such, the new 

timeline will become applicable to the 

stress testing cycle that begins on 

January 1, 2016. 

Commenters also requested that the 

FDIC provide stress test scenarios by no 

later than January 15 of a given calendar 

year given the compressed timeframe for 

implementation of stress testing 

processes. In developing the scenarios, 

the FDIC seeks to provide covered banks 

with sufficient time to conduct the 

annual stress tests, while also ensuring 

that the scenarios reflect timely data on 

economic and financial conditions. 

Under the revised timeline, the FDIC 

expects to provide stress test scenarios 

as soon as possible and before the 

deadlines set by the final rule. 

Accordingly, the FDIC has adopted this 

aspect of the proposal without 

significant change. 

Commenters additionally requested 

that the length of the planning horizon 

be reduced from nine quarters to eight 

quarters. The NPR would have shifted 

the stress testing timeline by one 

quarter, but would have maintained the 

nine-quarter planning horizon. The 

commenters argued that the ninth 

quarter does not provide additional 

meaningful information given the 

incremental uncertainty in projections 

as they move further into the future, and 

that eight quarters would still represent 

two full years of capital planning. The 

FDIC believes that the ninth quarter 

period provides meaningful information 

to the Agencies in assessing the 

projections of covered banks. 

Accordingly, the final rule maintains 

the nine-quarter planning horizon. 

Commenters also requested that the 

Agencies delay incorporation of 

advanced approaches risk-based capital 

rules into the annual stress testing 

process indefinitely. The NPR proposed 

to revise the testing and reporting dates 

and did not address the application of 

the risk-based capital rules. As such, the 

FDIC believes that technical aspects of 

projecting risk-based capital 

requirements under the advanced 

approaches should be dealt with on a 

case-by-case basis and through the 

supervisory process. 

III. The Final Rule 

After reviewing the comments, the 

FDIC is issuing this final rule to 

implement the changes proposed in the 

NPR to part 325, subpart C of the FDIC 

Rules and Regulations. 

A. Company-Run Stress Test Timelines 

Beginning January 1, 2016, the stress 

testing cycle that, under the previous 

rule, would have begun on October 1 of 

a given calendar year, will begin January 

1 of a given calendar year. Beginning 

with the 2016 stress-testing cycle, the 

final rule requires covered banks to 

conduct company-run stress tests using 

financial data as of December 31 of the 

preceding calendar year, which 

represents a three-month shift from 

September 30 in the previous rule. The 

FDIC will provide the economic 

scenarios to be used by covered banks 

in their company-run stress tests no 

later than February 15, rather than 

November 15, as is provided under the 

previous rule. For those certain covered 

banks with significant amounts of 

trading activities that are required to 

include trading and counterparty 

components in their adverse and 

severely adverse scenarios, the FDIC 

will select an ‘‘as of’’ date between 

January 1 and March 1 of a calendar 

year for the data used in this 

component. The FDIC will 

communicate this date to the covered 

banks no later than March 1. 

All $10 billion to $50 billion covered 

banks will be required to conduct and 

submit the results of their company-run 

stress tests to the FDIC by July 31 and 

publish those results during a period 

beginning on October 15 and ending 

October 31. Over $50 billion covered 

banks will be required to conduct and 

submit the results of their company-run 

stress tests to the FDIC by April 5 and 

publish those results during a period 

beginning on June 15 and ending on 

July 15. The April 5 reporting deadline 

for over $50 billion covered banks is a 

minor change from the April 7 deadline 

proposed in the NPR. 

Furthermore, a covered bank that is a 

consolidated subsidiary of a bank 

holding company or savings and loan 

holding company that is required to 

conduct an annual company-run stress 

test under applicable regulations of the 

Board may continue to elect to conduct 

its stress test and report to the FDIC on 

the same timeline as its parent bank 

holding company or savings and loan 

holding company as it had under the 

previous rule. Under the final rule, 

however, an over $50 billion covered 

bank that is a consolidated subsidiary of 

a holding company that is subject to 

supervisory stress tests conducted by 

the Board under 12 CFR part 252 may 

publish the required summary of its 

company-run stress test no earlier than 

the date that the Board publishes the 

supervisory stress test results for the 

parent holding company, but no later 


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Federal Register / Vol. 79, No. 225 / Friday, November 21, 2014 / Rules and Regulations 69367 

9 If the Board releases supervisory stress test 

results prior to June 15, then the covered bank may 

release its annual stress test results prior to June 15, 

but no earlier than the release of the supervisory 

stress test results and no later than July 15. 10See 5 U.S.C. 603, 604, and 605. 

than July 15. In addition, if the Board 

publishes the supervisory stress test 

results of the covered bank’s parent 

holding company prior to June 15, then 

the covered bank may satisfy its 

publication requirement either through 

actual publication by the covered bank 

or through publication by the parent 

holding company under § 325.207. 

B. Applicability 

The final rule amends the 

applicability provisions in § 325.203 of 

the Annual Stress Test rule to reflect the 

changed timeline. Previously, a state 

nonmember bank or state savings 

association that became a covered bank 

had to conduct its first annual stress test 

beginning in the next calendar year after 

the date the state nonmember bank or 

state savings association became a 

covered bank. Under the new 2016 

stress testing timeline, if this 

applicability provision were left 

unchanged, a state nonmember bank or 

state savings association that became a 

covered bank as of September 30 of a 

given year would have been required to 

conduct its first stress test on January 1, 

three months after becoming a covered 

bank. The final rule provides a 

minimum of nine months between the 

date on which a state nonmember bank 

or state savings association becomes a 

covered bank and the start date of the 

stress testing cycle in which the covered 

bank must conduct its first stress test. 

To preserve the nine-month minimum, 

the final rule establishes a March 31 

cutoff date. A state nonmember bank or 

state savings association that becomes a 

covered bank on or before March 31 of 

a given year would be required to 

conduct its first stress test in the next 

calendar year. For example, a state 

nonmember bank or state savings 

association that becomes a covered bank 

on or before March 31, 2015 would be 

required to conduct its first stress test in 

the stress testing cycle beginning 

January 1, 2016. A state nonmember 

bank or state savings association that 

becomes a covered bank after March 31 

of a given year would be required to 

conduct its first stress test in the second 

calendar year after the date the state 

nonmember bank or state savings 

association becomes a covered bank. For 

example, a state nonmember bank or 

state savings association that becomes a 

covered bank on June 30, 2015 would be 

required to conduct its first stress test in 

the stress testing cycle beginning 

January 1, 2017. 

TABLE 1—MODIFIED ANNUAL STRESS TEST TIMELINE FOR $10 BILLION TO $50 BILLION COVERED BANKS

Action required 

‘‘As of’’ date for financial data 

Current rule 

September 30 

Final rule 

December 31 

Distribution of Scenarios for Annual Stress 

Tests by FDIC.

By November 15 .............................................. By February 15. 

Reporting of Annual Stress Test Results ........... By March 31 ..................................................... By July 31. 

Public Disclosure of Annual Stress Test Results Between June 15 and June 30 ........................ Between October 15 and October 31. 

TABLE 2—MODIFIED ANNUAL STRESS TEST TIMELINE FOR OVER $50 BILLION COVERED BANKS

Action required 

‘‘As of’’ date for financial data 

Current rule 

September 30 

Final rule 

December 31 

Distribution of Scenarios for Annual Stress 

Tests by FDIC.

By November 15 .............................................. By February 15. 

Reporting of Annual Stress Test Results ........... By January 5 .................................................... By April 5. 

Public Disclosure of Annual Stress Test Results Between March 15 and March 31 ................... Between June 15 and July 15, except no earlier than Board publication of the supervisory stress test results of the covered 

bank’s holding company.9

IV. Administrative Law Matters 

A. Paperwork Reduction Act Analysis 

In accordance with the requirements 

of the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3521) (‘‘PRA’’), the 

Corporation may not conduct or 

sponsor, and the 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 FDIC has 

two stress testing information 

collections: The Annual Stress Test and 

Stress Testing Reporting Templates, 

3064–0187 and –0189. 

The Corporation is revising 12 CFR 

325.202, 325.203, 325.204, 325.206, and 

325.207 by modifying timelines for the 

testing, reporting, and disclosure of the 

annual stress tests for covered banks. 

The revisions shift by three months the 

‘‘as of’’ date of the financial data used 

to conduct company-run stress tests for 

covered banks from September 30 to 

December 31. The final rule also shifts 

the reporting and disclosure deadlines 

for both $10 billion to $50 billion 

covered banks and over $50 billion 

covered banks and provide for a new 

transition period for those covered 

banks that become covered under the 

rule. Additionally, under the final rule, 

an over $50 billion covered bank that is 

a consolidated subsidiary of a bank 

holding company or savings and loan 

holding company subject to supervisory 

stress tests conducted by the Board may 

publish the required summary of its 

annual stress test results no earlier than 

the date that the Board publishes the 

supervisory stress test results of the 

covered bank’s parent holding company, 

but no later than July 15. The revision 

of timelines in part 325, subpart C does 

not revise the FDIC’s stress testing 

information collections of information. 

B. Regulatory Flexibility Act Analysis 

The Regulatory Flexibility Act, 5 

U.S.C. 601, et seq. (RFA), requires that 

each federal agency either certify that a 

proposed rule would not, if adopted in 

final form, have a significant economic 

impact on a substantial number of small 

entities or prepare an initial regulatory 

flexibility analysis of the rule and 

publish the analysis for comment.10 The 

final rule applies only to state 

nonmember banks and state savings 

associations with more than $10 billion 

in total consolidated assets. Under 


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69368 Federal Register / Vol. 79, No. 225 / Friday, November 21, 2014 / Rules and Regulations 

11 13 CFR 121.201. 

12 5 U.S.C. 801, et seq. 

regulations issued by the Small 

Business Administration (SBA), a bank 

or other depository institution is 

considered ‘‘small’’ if it has $550 

million or less in assets.11 As of June 30, 

2014, there are approximately 3,268 

small state nonmember banks and state 

savings associations. Since the final rule 

applies only to twenty-six state 

nonmember banks and state savings 

associations with more than $10 billion 

in total consolidated assets, the 

Corporation does not expect that the 

final rule will directly affect a 

substantial number of small entities. It 

is hereby certified that this rule will not 

have a significant economic impact on 

a substantial number of small entities 

and therefore, a regulatory flexibility 

analysis under the RFA is not required. 

C. Plain Language 

Section 722 of the Gramm-LeachBliley Act (Pub. L. 106–102, 113 Stat. 

1338, 1471, 12 U.S.C. 4809) requires 

federal banking agencies to use plain 

language in all proposed and final rules 

published after January 1, 2000. The 

Corporation sought to present the 

proposed rule in a simple and 

straightforward manner and invited 

comment on how to make the proposed 

rule easier to understand. The FDIC 

received no comments on the use of 

plain language. 

D. Small Business Regulatory 

Enforcement Fairness Act 

The Office of Management and Budget 

has determined that the final rule is not 

a ‘‘major rule’’ within the meaning of 

the relevant sections of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 12 (‘‘SBREFA’’). 

List of Subjects in 12 CFR Part 325 

Administrative practice and 

procedure, Banks, Banking, Disclosures, 

Federal Deposit Insurance Corporation, 

Reporting and recordkeeping 

requirements, State savings associations, 

Stress tests. 

Authority and Issuance 

For reasons stated in the preamble, 

the Board of Directors of the Federal 

Deposit Insurance Corporation amends 

subpart C to part 325 of title 12 of the 

Code of Federal Regulations as follows: 

PART 325—CAPITAL MAINTENANCE 

■ 1. Revise the authority citation for part 

325 to read as follows: 

Authority: 12 U.S.C. 5365(i)(2); 12 U.S.C. 

5412(b)(2)(C); 12 U.S.C. 1818, 12 U.S.C. 

1819(a)(Tenth), 12 U.S.C. 1831o, and 12 

U.S.C. 1831p–1. 

■ 2. In § 325.202, add paragraph (m) to 

read as follows: 

§ 325.202 Definitions. 

* * * * * 

(m) Stress test cycle means: 

(1) Until October 1, 2015, the period 

beginning October 1 of a calendar year 

and ending on September 30 of the 

following calendar year; and 

(2) Beginning October 1, 2015, the 

period beginning January 1 of a calendar 

year and ending on December 31 of that 

year. 

■ 3. In § 325.203, revise paragraph (b) to 

read as follows: 

§ 325.203 Applicability. 

* * * * * 

(b)(1) A state nonmember bank or 

state savings association that becomes a 

covered bank after October 15, 2012 and 

on or before March 31, 2014 shall 

conduct its first annual stress test under 

this subpart beginning in the next 

calendar year after the date the state 

nonmember bank or state savings 

association becomes a covered bank. 

(2) A state nonmember bank or state 

savings association that becomes a 

covered bank after March 31, 2014 and 

on or before March 31, 2015 shall 

conduct its first annual stress test under 

this subpart in the January 1, 2016 stress 

testing cycle. 

(3) A state nonmember bank or state 

savings association that becomes a 

covered bank on or before March 31 in 

years following 2015 shall conduct its 

first annual stress test under this 

subpart in the stress testing cycle in the 

next calendar year after the date the 

state nonmember bank or state savings 

association becomes a covered bank. A 

state nonmember bank or state savings 

association that becomes a covered bank 

after March 31 in years following 2015 

shall conduct its first annual stress test 

under this subpart in the second 

calendar year after the date the state 

nonmember bank or state savings 

association becomes a covered bank. 

* * * * * 

■ 4. Revise § 325.204 to read as follows: 

§ 325.204 Annual stress tests required. 

(a) General requirements—(1) $10 

billion to $50 billion covered bank. Prior 

to January 1, 2016, a $10 billion to $50 

billion covered bank must conduct a 

stress test on or before March 31 of each 

calendar year based on financial data as 

of September 30 of the preceding 

calendar year. Beginning January 1, 

2016, a $10 billion to $50 billion 

covered bank must conduct a stress test 

on or before July 31 of each calendar 

year based on financial data as of 

December 31 of the preceding calendar 

year. 

(2) Over $50 billion covered bank. 

Prior to January 1, 2016, an over $50 

billion covered bank must conduct a 

stress test on or before January 5 of each 

calendar year based on financial data as 

of September 30 of the preceding 

calendar year. Beginning January 1, 

2016, an over $50 billion covered bank 

must conduct a stress test on or before 

April 5 of each calendar year based on 

financial data as of December 31 of the 

preceding calendar year. 

(b) Scenarios provided by the 

Corporation. In conducting the stress 

test under this subpart, each covered 

bank must use the scenarios provided 

the Corporation. The scenarios provided 

by the Corporation will reflect a 

minimum of three sets of economic and 

financial conditions, including baseline, 

adverse, and severely adverse scenarios. 

The Corporation will provide a 

description of the scenarios required 

under this section to each covered bank 

no later than November 15 (for stress 

test cycle beginning October 1, 2014) or 

February 15 (for stress test cycle 

beginning January 1, 2016, and all stress 

test cycles thereafter) of that calendar 

year. 

(c) Significant trading activities. The 

Corporation may require a covered bank 

with significant trading activities, as 

determined by the Corporation, to 

include trading and counterparty 

components in its adverse and severely 

adverse scenarios. The trading and 

counterparty position data used in these 

components will be as of a date between 

October 1 and December 1 (for the stress 

test cycle beginning October 1, 2014) or 

between January 1 and March 1 (for the 

stress test cycle beginning January 1, 

2016, and all stress test cycles 

thereafter) of that calendar year selected 

by the Corporation and communicated 

to the covered bank no later than 

December 1 (for the stress test cycle 

beginning October 1, 2014) or March 1 

(for the stress test cycle beginning 

January 1, 2016, and all stress test cycles 

thereafter) of the calendar year. 

■ 5. Revise § 325.206(a) to read as 

follows: 

§ 325.206 Required reports of stress test 

results to the FDIC and the Board of 

Governors of the Federal Reserve System. 

(a) Report required for annual stress 

test results—(1) $10 billion to $50 

billion covered bank. Prior to January 1, 

2016, a $10 billion to $50 billion 

covered bank must report to the FDIC 

and to the Board on or before March 31 

the results of the stress test in the 


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Federal Register / Vol. 79, No. 225 / Friday, November 21, 2014 / Rules and Regulations 69369 

manner and form specified by the FDIC. 

Beginning January 1, 2016, a $10 billion 

to $50 billion covered bank must report 

to the FDIC and to the Board on or 

before July 31 the results of the stress 

test in the manner and form specified by 

the FDIC. 

(2) Over $50 billion covered bank. 

Prior to January 1, 2016, an over $50 

billion covered bank must report to the 

FDIC and to the Board, on or before 

January 5, the results of the stress test 

in the manner and form specified by the 

FDIC. Beginning January 1, 2016, an 

over $50 billion covered bank must 

report to the FDIC and to the Board, on 

or before April 5, the results of the stress 

test in the manner and form specified by 

the FDIC. 

* * * * * 

■ 6. Revise § 325. 207(a) to read as 

follows: 

§ 325.207 Publication of stress test 

results. 

(a) Publication date—(1) $10 billion to 

$50 billion covered bank. (i) Prior to 

January 1, 2016, a $10 billion to $50 

billion covered bank must publish a 

summary of the results of its annual 

stress test in the period starting June 15 

and ending June 30 (for the stress test 

cycle beginning October 1, 2014). 

(ii) Beginning January 1, 2016, a $10 

billion to $50 billion covered bank must 

publish a summary of the results of its 

annual stress test in the period starting 

October 15 and ending October 31 (for 

the stress test cycle beginning January 1, 

2016 and for all stress test cycles 

thereafter). 

(2) Over $50 billion covered bank. (i) 

Prior to January 1, 2016, an over $50 

billion covered bank must publish a 

summary of the results of its annual 

stress tests in the period starting March 

15 and ending March 31 (for the stress 

test cycle beginning October 1, 2014). 

(ii) Beginning January 1, 2016, an over 

$50 billion covered bank must publish 

a summary of the results of its annual 

stress tests in the period starting June 15 

and ending July 15 (for the stress test 

cycle beginning January 1 2016, and for 

all stress test cycles thereafter) 

provided: 

(A) Unless the Corporation 

determines otherwise, if the over $50 

billion covered bank is a consolidated 

subsidiary of a bank holding company 

or savings and loan holding company 

subject to supervisory stress tests 

conducted by the Board of Governors of 

the Federal Reserve System under 12 

CFR part 252, then, within the June 15 

to July 15 period, such covered bank 

may not publish the required summary 

of its annual stress test earlier than the 

date that the Board of Governors of the 

Federal Reserve System publishes the 

supervisory stress test results of the 

covered bank’s parent holding company. 

(B) If the Board of Governors of the 

Federal Reserve System publishes the 

supervisory stress test results of the 

covered bank’s parent holding company 

prior to June 15, then such covered bank 

may publish its stress test results prior 

to June 15, but no later than July 15, 

through actual publication by the 

covered bank or through publication by 

the parent holding company under 

paragraph (b) of this section. 

* * * * * 

Dated at Washington, DC, this 18th day of 

November 2014. 

Federal Deposit Insurance Corporation. 

By order of the Board of Directors. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2014–27610 Filed 11–20–14; 8:45 am] 

BILLING CODE 6714–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2013–0072; Directorate 

Identifier 2013–NE–04–AD; Amendment 39– 

18017; AD 2014–23–01] 

RIN 2120–AA64 

Airworthiness Directives; Pratt & 

Whitney Division Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are superseding 

airworthiness directive (AD) 2013–15– 

09 for all Pratt & Whitney Division (PW) 

PW4074, PW4074D, PW4077, 

PW4077D, PW4084D, PW4090, and 

PW4090–3 turbofan engine models with 

certain second-stage high-pressure 

turbine (HPT) air seals installed. AD 

2013–15–09 required initial and 

repetitive inspections for cracks in 

second-stage HPT air seals. This new 

AD expands the applicability of AD 

2013–15–09 to include additional part 

numbers (P/Ns), requires removal of the 

mating hardware if the second-stage 

HPT air seal is found with a throughcrack, and adds a mandatory 

terminating action. This AD was 

prompted by reports of cracking in the 

original location on two additional P/Ns 

and reports of through-cracks in a new 

location in the second-stage HPT air 

seal. We are issuing this AD to prevent 

failure of the second-stage HPT air seal, 

which could lead to uncontained engine 

failure and damage to the airplane. 

DATES: This AD is effective December 

26, 2014. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of September 17, 2013 (78 FR 49111, 

August 13, 2013). 

ADDRESSES: For service information 

identified in this AD, contact Pratt & 

Whitney Division, 400 Main St., East 

Hartford, CT 06108; phone: (860) 565– 

8770; fax: (860) 565–4503. You may 

view this service information at the 

FAA, Engine & Propeller Directorate, 12 

New England Executive Park, 

Burlington, MA. For information on the 

availability of this material at the FAA, 

call (781) 238–7125. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2013– 

0072; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The address for the 

Docket Office (phone: 800–647–5527) is 

Document Management Facility, U.S. 

Department of Transportation, Docket 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue SE., Washington, 

DC 20590. 

FOR FURTHER INFORMATION CONTACT: JoAnn Theriault, Aerospace Engineer, 

Engine Certification Office, FAA, Engine 

& Propeller Directorate, 12 New England 

Executive Park, Burlington, MA 01803; 

phone: 781–238–7105; fax: 781–238– 

7199; email: jo-ann.theriault@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to supersede AD 2013–15–09, 

Amendment 39–17525 (78 FR 49111, 

August 13, 2013), (‘‘AD 2013–15–09’’). 

AD 2013–15–09 applied to all PW 

PW4074, PW4074D, PW4077, 

PW4077D, PW4084D, PW4090, and 

PW4090–3 turbofan engine models with 

certain second-stage HPT air seals 

installed. The NPRM published in the 

Federal Register on June 5, 2014 (79 FR 

32500). The NPRM was prompted by 

reports of through-cracks in a different 

location on a second-stage HPT air seal, 

and reports of cracking in the original 

location in two additional second-stage 

HPT air seals. Pratt & Whitney 

developed a redesigned second-stage 


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