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.

Rules and Regulations Federal Register

68243 

Vol. 85, No. 209 

Wednesday, October 28, 2020 

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Chapter I 

[NRC–2020–0125] 

RIN 3150–AK48 

Miscellaneous Corrections 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Final rule, correction. 

SUMMARY: The U.S. Nuclear Regulatory 

Commission (NRC) is correcting a final 

rule that appeared in the Federal 

Register on October 16, 2020. The NRC 

is amending its regulations to make 

miscellaneous corrections. These 

changes include redesignating footnotes, 

correcting references, typographical 

errors, nomenclature, titles, email 

addresses, and contact information. This 

action is necessary to correct an error 

that appeared in Instruction 8 of the 

final rule. 

DATES: This correction is effective on 

November 16, 2020. 

ADDRESSES: Please refer to Docket ID 

NRC–2020–0125 when contacting the 

NRC about the availability of 

information for this action. You may 

obtain publicly-available information 

related to this action by any of the 

following methods: 

• Federal Rulemaking Website: Go to 

https://www.regulations.gov and search 

for Docket ID NRC–2020–0125. Address 

questions about NRC dockets to Carol 

Gallagher; telephone: 301–415–3463; 

email: Carol.Gallagher@nrc.gov. 

• NRC’s Agencywide Documents 

Access and Management System 

(ADAMS): You may obtain publiclyavailable documents online in the 

ADAMS Public Documents Collection at 

https://www.nrc.gov/reading-rm/ 

adams.html. To begin the search, select 

‘‘Begin Web-based ADAMS Search.’’ For 

problems with ADAMS, please contact 

the NRC’s Public Document Room (PDR) 

reference staff at 1–800–397–4209, 301– 

415–4737, or by email to 

PDR.Resource@nrc.gov. 

• Attention: The Public Document 

Room (PDR), where you may examine 

and order copies of public documents is 

currently closed. You may submit your 

request to the PDR via email at 

PDR.Resource@nrc.gov or call 1–800– 

397–4209 between 8:00 a.m. and 4:00 

p.m. (EST), Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: Jill 

Shepherd, Office of Nuclear Material 

Safety and Safeguards, U.S. Nuclear 

Regulatory Commission, Washington, 

DC 20555–0001; telephone: 301–415– 

1230, email: Jill.Shepherd@nrc.gov. 

SUPPLEMENTARY INFORMATION: The NRC 

is correcting FR Doc. 20–21148, a final 

rule that published in the Federal 

Register on October 16, 2020 (85 FR 

65656). 

■ On page 65661, second column, sixth 

paragraph, revise Instruction 8, to read 

as follows ‘‘In § 20.1906, revise the 

introductory text of paragraph (d) to 

read as follows:’’. 

Dated October 19, 2020. 

For the Nuclear Regulatory Commission. 

Cindy K. Bladey, 

Chief, Regulatory Analysis and Rulemaking 

Support Branch, Division of Rulemaking, 

Environmental, and Financial Support, Office 

of Nuclear Material Safety and Safeguards. 

[FR Doc. 2020–23520 Filed 10–27–20; 8:45 am] 

BILLING CODE 7590–01–P 

DEPARTMENT OF TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Parts 3 and 50 

[Docket ID OCC–2020–0017] 

RIN 1557–AE89; 1557–AE90; 1557–AE92] 

FEDERAL RESERVE SYSTEM 

12 CFR Parts 217 and 249 

[Docket Nos. R–1711; 1712; and 1717] 

RIN 7100–AF85; 7100–AF86: 7100–AF90 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 324 and 329 

RIN 3064–AF41; 3064–AF49; 3064–AF51 

Treatment of Certain Emergency 

Facilities in the Regulatory Capital 

Rule and the Liquidity Coverage Ratio 

Rule 

AGENCY: The Office of the Comptroller 

of the Currency, Department of the 

Treasury; the Board of Governors of the 

Federal Reserve System; and the Federal 

Deposit Insurance Corporation. 

ACTION: Final rule. 

SUMMARY: The Office of the Comptroller 

of the Currency, the Board of Governors 

of the Federal Reserve System, and the 

Federal Deposit Insurance Corporation 

are adopting as final the revisions to the 

regulatory capital rule and the liquidity 

coverage ratio (LCR) rule made under 

three interim final rules published in 

the Federal Register on March 23, April 

13, and May 6, 2020. The agencies are 

adopting these interim final rules as 

final with no changes. Under this final 

rule, banking organizations may 

continue to neutralize the regulatory 

capital effects of participating in the 

Money Market Mutual Fund Liquidity 

Facility (MMLF) and the Paycheck 

Protection Program Liquidity Facility 

(PPPLF), and are required to continue to 

neutralize the LCR effects of 

participating in the MMLF and the 

PPPLF. In addition, Paycheck Protection 

Program loans will receive a zero 

percent risk weight under the agencies’ 

regulatory capital rules. 

DATES: The final rule is effective 

December 28, 2020. 


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68244 Federal Register / Vol. 85, No. 209 / Wednesday, October 28, 2020 / Rules and Regulations 

1 12 U.S.C. 343(3). 

2The Paycheck Protection Program Liquidity 

Facility was previously known as the Paycheck 

Protection Program Lending Facility. 

3Congress created the PPP as part of the 

Coronavirus Aid, Relief, and Economic Security Act 

and in recognition of the exigent circumstances 

faced by small businesses. PPP covered loans are 

fully guaranteed as to principal and accrued interest 

by the Small Business Administration (SBA) and 

also afford borrower forgiveness up to the principal 

amount and accrued interest of the PPP covered 

loan, if the proceeds of the PPP covered loan are 

used for certain expenses. Under the PPP, eligible 

borrowers generally include businesses with fewer 

than 500 employees or that are otherwise 

considered to be small by the SBA. The SBA 

reimburses PPP lenders for any amount of a PPP 

covered loan that is forgiven. In general, PPP 

lenders are not held liable for any representations 

made by PPP borrowers in connection with a 

borrower’s request for PPP covered loan 

forgiveness. For more information on the Paycheck 

Protection Program, see https://www.sba.gov/ 

funding-programs/loans/coronavirus-relief-options/ 

paycheck-protection-program-ppp. 

4The maturity date of the loan made under the 

PPPLF will be accelerated if the underlying PPP 

covered loan goes into default and the eligible 

borrower sells the PPP covered loan to the Small 

Business Administration (SBA) to realize the SBA 

guarantee. The maturity date of the loan made 

under the PPPLF also will be accelerated to the 

extent of any PPP covered loan forgiveness 

reimbursement received by the eligible borrower 

from the SBA. 

5Banking organizations subject to the capital rule 

include national banks, state member banks, state 

nonmember banks, savings associations, and toptier bank holding companies and savings and loan 

holding companies domiciled in the United States 

not subject to the Board’s Small Bank Holding 

Company Policy Statement (12 CFR part 225, 

appendix C), but exclude certain savings and loan 

holding companies that are substantially engaged in 

insurance underwriting or commercial activities or 

that are estate trusts, and bank holding companies 

and savings and loan holding companies that are 

employee stock ownership plans. See 12 CFR part 

3 (OCC); 12 CFR part 217 (Board); and 12 CFR part 

324 (FDIC). 

6See 12 CFR part 50 (OCC); 12 CFR part 249 

(Board); and 12 CFR part 329 (FDIC). 

7 85 FR 16232 (Mar. 23, 2020). 

8 85 FR 20387 (Apr. 13, 2020). 

FOR FURTHER INFORMATION CONTACT: 

OCC: Andrew Tschirhart, Risk Expert, 

Capital and Regulatory Policy, (202) 

649–6370; James Weinberger, Technical 

Expert, Treasury & Market Risk Policy, 

(202) 649–6360; Henry Barkhausen, 

Counsel, Kevin Korzeniewski, Counsel, 

Rima Kundnani, Senior Attorney, or 

Daniel Perez, Senior Attorney, Chief 

Counsel’s Office, (202) 649–5490, for 

persons who are deaf or hearing 

impaired, TTY, (202) 649–5597, Office 

of the Comptroller of the Currency, 400 

7th Street SW, Washington, DC 20219. 

Board: Anna Lee Hewko, Associate 

Director, (202) 530–6360; Constance M. 

Horsley, Deputy Associate Director, 

(202) 452–5239; Juan Climent, Assistant 

Director, (202) 872–7526; Kathryn 

Ballintine, Manager, (202) 452–2555; 

Kevin Littler, Lead Financial Institution 

Policy Analyst, (202) 475–6677; Devyn 

Jeffereis, Senior Financial Institution 

Policy Analyst, (202) 365–2467; or 

Brendan Rowan, Senior Financial 

Institution Policy Analyst, (202) 475– 

6685, Division of Supervision and 

Regulation; or Benjamin W. 

McDonough, Assistant General Counsel, 

(202) 452–2036; David W. Alexander, 

Senior Counsel, (202) 452–2877; Steve 

Bowne, Senior Counsel, (202) 452–3900; 

Jason Shafer, Senior Counsel, (202) 728– 

5811; Laura Bain, Counsel (202) 736– 

5546; or Jeffery Zhang, Attorney, (202) 

736–1968, Legal Division, Board of 

Governors of the Federal Reserve 

System, 20th Street and Constitution 

Avenue NW, Washington, DC 20551. 

Users of Telecommunication Device for 

the Deaf (TDD) only, call (202) 263– 

4869. 

FDIC: Bobby R. Bean, Associate 

Director, bbean@fdic.gov; Benedetto 

Bosco, Chief, Capital Policy Section, 

bbosco@fdic.gov; Noah Cuttler, Senior 

Policy Analyst, ncuttler@fdic.gov; Eric 

Schatten, Senior Policy Analyst, 

eschatten@fdic.gov; Andrew 

Carayiannis, Senior Policy Analyst, 

acarayiannis@fdic.gov; 

regulatorycapital@fdic.gov; Capital 

Markets Branch, Division of Risk 

Management Supervision, (202) 898– 

6888; or Michael Phillips, Counsel, 

mphillips@fdic.gov; Catherine Wood, 

Counsel, cawood@fdic.gov; Sue Dawley, 

Counsel, sudawley@fdic.gov; Gregory 

Feder, Counsel, gfeder@fdic.gov; 

Andrew B. Williams, II, Counsel, 

andwilliams@fdic.gov; Supervision and 

Legislation Branch, Legal Division, 

Federal Deposit Insurance Corporation, 

550 17th Street NW, Washington, DC 

20429. For the hearing impaired only, 

Telecommunication Device for the Deaf 

(TDD), (800) 925–4618. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

A. Capital Rule 

B. LCR Rule 

II. Overview of the Interim Final Rules and 

Public Comments 

A. MMLF Capital Interim Final Rule 

B. PPPLF Capital Interim Final Rule 

C. LCR Interim Final Rule 

D. Public Comments 

III. Summary of the Final Rule 

IV. Administrative Law Matters 

A. Congressional Review Act 

B. Paperwork Reduction Act 

C. Regulatory Flexibility Act 

D. Riegle Community Development and 

Regulatory Improvement Act of 1994 

E. Use of Plain Language 

F. OCC Unfunded Mandates Reform Act of 

1995 

I. Background 

In light of recent disruptions in 

economic conditions caused by the 

outbreak of the coronavirus disease 

2019 and the stress in U.S. financial 

markets, the Board of Governors of the 

Federal Reserve System (Board), with 

the approval of the U.S. Secretary of the 

Treasury, established certain liquidity 

facilities pursuant to section 13(3) of the 

Federal Reserve Act.1

In order to prevent disruptions in the 

money markets from destabilizing the 

financial system, the Board authorized 

the Federal Reserve Bank of Boston to 

establish the Money Market Mutual 

Fund Liquidity Facility (MMLF). Under 

the MMLF, the Federal Reserve Bank of 

Boston may extend non-recourse loans 

to eligible borrowers to purchase assets 

from money market mutual funds. 

Assets purchased from money market 

mutual funds are posted as collateral to 

the Federal Reserve Bank of Boston. 

In order to provide liquidity to small 

business lenders and the broader credit 

markets, and to help stabilize the 

financial system, the Board authorized 

each of the Federal Reserve Banks to 

extend credit under the Paycheck 

Protection Program Liquidity Facility 

(PPPLF).2 Under the PPPLF, each of the 

Federal Reserve Banks may extend nonrecourse loans to institutions that are 

eligible to make Paycheck Protection 

Program (PPP) covered loans as defined 

in section 7(a)(36) of the Small Business 

Act.3 Under the PPPLF, only PPP 

covered loans that are guaranteed by the 

Small Business Administration (SBA) 

with respect to both principal and 

accrued interest and that are originated 

by an eligible institution may be 

pledged as collateral to the Federal 

Reserve Banks. The maturity date of the 

extension of credit under the PPPLF 

equals the maturity date of the PPP 

covered loans pledged to secure the 

extension of credit.4

Eligible borrowers from the MMLF 

and PPPLF and holders of PPP covered 

loans include banking organizations 

supervised by the Office of the 

Comptroller of the Currency (OCC), the 

Board, and the Federal Deposit 

Insurance Corporation (FDIC) (together, 

the agencies) that are subject to the 

agencies’ regulatory capital rule (capital 

rule) 5 and that may be subject to the 

liquidity coverage ratio (LCR) rule.6 To 

facilitate the use of the MMLF and the 

PPPLF, the agencies adopted three 

interim final rules (interim final rules) 

to address the capital treatment of 

participation in the MMLF (MMLF 

capital interim final rule),7 the capital 

treatment of participation in the PPPLF 

(PPPLF capital interim final rule),8 and 

the LCR treatment of participation in the 


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9 85 FR 26835 (May 6, 2020). 

10The applicability of the LCR rule is described 

in 12 CFR 50.1 (OCC); 12 CFR 249.1 (Board); and 

12 CFR 329.1 (FDIC). 

11See 12 CFR 50.32 and 50.33 (OCC); 12 CFR 

249.32 and 249.33 (Board); and 12 CFR 329.32 and 

329.33 (FDIC). Section __.30 of the LCR rule also 

requires a covered company, as applicable, to 

include in its total net cash outflow amount a 

maturity mismatch add-on, which is calculated as 

the difference (if greater than zero) between the 

covered company’s largest net cumulative maturity 

outflow amount for any of the 30 calendar days 

following the calculation date and the net day 30 

cumulative maturity outflow amount. See 12 CFR 

50.30 (OCC); 12 CFR 249.30 (Board); and 12 CFR 

329.30 (FDIC). 

12See 12 CFR 50.34 (OCC); 12 CFR 249.34 

(Board); and 12 CFR 329.34 (FDIC). Section __.34 

does not apply to the extent the covered company 

secures Covered Federal Reserve Facility Funding 

with securities, debt obligations, or other 

instruments issued by the covered company or its 

consolidated entity. 

MMLF and the PPPLF (LCR interim 

final rule),9 respectively. 

A. Capital Rule 

The capital rule requires banking 

organizations to comply with risk-based 

and leverage capital requirements, 

which are expressed as a ratio of 

regulatory capital to assets and certain 

other exposures. Risk-based capital 

requirements are based on risk-weighted 

assets, whereas leverage capital 

requirements are based on a measure of 

average total consolidated assets or total 

leverage exposure. Participation in the 

MMLF or the PPPLF affects the balance 

sheet of a banking organization. To 

participate in the MMLF, a banking 

organization must acquire and hold 

assets (that is, eligible collateral pledged 

to the Federal Reserve Bank of Boston) 

on its balance sheet. Similarly, to 

participate in the PPPLF, a banking 

organization must hold PPP covered 

loans on its balance sheet. As a result, 

without the agencies’ issuance of the 

MMLF capital and PPPLF capital 

interim final rules, a banking 

organization that participates in either 

facility could have been required to 

maintain increased regulatory capital. 

B. LCR Rule 

The LCR rule requires covered 

companies 10 to calculate and maintain 

an amount of high-quality liquid assets 

(HQLA) sufficient to cover their total net 

cash outflows over a 30-day stress 

period. A covered company’s LCR is the 

ratio of its HQLA amount divided by its 

total net cash outflow amount. The total 

net cash outflow amount is calculated as 

the difference between outflow and 

inflow amounts, which are determined 

by applying a standardized set of 

outflow and inflow rates to the cash 

flows of various assets and liabilities, 

together with off-balance sheet items, as 

specified in sections __.32 and __.33 of 

the LCR rule.11

Absent changes to the LCR rule, 

covered companies would have been 

required to recognize outflows for 

MMLF and PPPLF advances with a 

remaining maturity of 30 days or less 

and inflows for certain assets securing 

the MMLF and PPPLF advances. As a 

result, a covered company’s 

participation in the MMLF or PPPLF 

could have affected its total net cash 

outflow amount, which potentially 

could have resulted in an inconsistent, 

unpredictable, and more volatile 

calculation of LCR requirements across 

covered companies. 

II. Overview of the Interim Final Rules 

and Public Comments 

A. MMLF Capital Interim Final Rule 

On March 23, 2020, the agencies 

published in the Federal Register the 

MMLF capital interim final rule to 

neutralize the regulatory capital effect of 

participation in the MMLF. The MMLF 

capital interim final rule permits a 

banking organization to exclude 

exposures acquired as part of the MMLF 

from the banking organization’s total 

leverage exposure, average total 

consolidated assets, advanced 

approaches total risk-weighted assets, 

and standardized total risk-weighted 

assets, as applicable. Because of the 

non-recourse nature of the Federal 

Reserve Bank of Boston’s extension of 

credit to the banking organization, the 

organization is not exposed to credit or 

market risk from the assets purchased 

by the banking organization and 

pledged to the Federal Reserve Bank of 

Boston. The MMLF capital interim final 

rule reflects the agencies’ determination 

that, prior to the MMLF capital interim 

final rule, the leverage and risk-based 

capital requirements in place in the 

capital rule for the assets acquired by a 

banking organization as part of the 

MMLF did not reflect the substantial 

protections provided to the organization 

by the Federal Reserve Bank of Boston 

in connection with the facility. 

B. PPPLF Capital Interim Final Rule 

On April 13, 2020, the agencies 

published in the Federal Register the 

PPPLF capital interim final rule to 

neutralize the regulatory capital effect of 

participation in the PPPLF. The PPPLF 

capital interim final rule permits a 

banking organization to exclude 

exposures pledged as collateral to the 

PPPLF from the banking organization’s 

total leverage exposure, average total 

consolidated assets, advanced 

approaches total risk-weighted assets, 

and standardized total risk-weighted 

assets, as applicable. Because of the 

non-recourse nature of each Federal 

Reserve Bank’s extension of credit to the 

banking organization, the banking 

organization is not exposed to credit or 

market risk from the pledged PPP 

covered loans. The PPPLF capital 

interim final rule reflects the agencies’ 

determination that, prior to the PPPLF 

capital interim final rule, the regulatory 

capital requirements in place in the 

capital rule for PPP covered loans 

pledged by a banking organization to a 

Federal Reserve Bank as part of the 

PPPLF did not reflect the substantial 

protections from risk provided to the 

banking organization in connection with 

the facility. 

Additionally, the PPPLF capital 

interim final rule provides that a 

banking organization must apply a zero 

percent risk weight to PPP covered 

loans, as required by Section 1102 of the 

Coronavirus Aid, Relief, and Economic 

Security (CARES) Act. A banking 

organization must apply a zero percent 

risk weight to PPP covered loans 

regardless of whether they are pledged 

under the PPPLF. 

C. LCR Interim Final Rule 

On May 6, 2020, the agencies 

published in the Federal Register the 

LCR interim final rule to require a 

banking organization subject to the LCR 

rule to neutralize the effect on its LCR 

of participation in the MMLF and 

PPPLF. The LCR interim final rule 

requires a covered company to 

neutralize the LCR effects of the 

advances made by the MMLF and 

PPPLF together with the assets securing 

these advances. Specifically, the LCR 

interim final rule adds a new definition 

to the LCR rule for ‘‘Covered Federal 

Reserve Facility Funding’’ to identify 

MMLF and PPPLF advances separately 

from other secured funding transactions 

under the LCR rule. The LCR interim 

final rule requires outflow amounts 

associated with Covered Federal 

Reserve Facility Funding and inflow 

amounts associated with the assets 

securing this funding to be excluded 

from a covered company’s total net cash 

outflow amount under the LCR rule.12

Advances from the MMLF and PPPLF 

facilities are non-recourse and the 

maturity of the advance generally aligns 

with the maturity of the collateral. 

Accordingly, a covered company is not 

exposed to credit or market risk from 

the collateral securing the MMLF or 

PPPLF advance that could otherwise 

affect the banking organization’s ability 

to settle the loan and generally can use 

the value of cash received from the 

collateral to repay the advances at 


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68246 Federal Register / Vol. 85, No. 209 / Wednesday, October 28, 2020 / Rules and Regulations 

13Assets acquired as part of the MMLF and PPP 

covered loans pledged to the PPPLF would 

continue to be included in a bank’s measure of total 

consolidated assets, including for purposes of 

determining whether a banking organization is a 

qualifying community banking organization. 

14 5 U.S.C. 801 et seq. 

15 5 U.S.C. 801(a)(3). 

16 5 U.S.C. 804(2). 

17The Board published a separate Federal 

Register notice to make temporary revisions to the 

FR Y–9 reports in connection with the MMLF 

Capital Interim Final Rule. 85 FR 19944 (Apr. 9, 

2020). 

18See 85 FR 44361 (July 22, 2020). 

maturity. For these reasons, the agencies 

issued the LCR interim final rule to 

better align the treatment of these 

advances and collateral under the LCR 

rule with the liquidity risk associated 

with funding exposures through these 

facilities, and to ensure consistent and 

predictable treatment of covered 

companies’ participation in the facilities 

under the LCR rule. 

D. Public Comments 

Comments on the MMLF Capital Interim 

Final Rule 

The agencies received two comment 

letters, from a trade association and an 

advocacy organization, addressing the 

MMLF capital interim final rule. These 

commenters supported the agencies’ 

actions to encourage banking 

organizations’ participation in the 

emergency lending facility. One 

commenter recommended broader 

considerations for money market mutual 

fund reform that are outside the scope 

of this rulemaking. 

Comments on the PPPLF Capital Interim 

Final Rule 

The agencies received 14 comment 

letters from industry participants, 

advocacy groups, trade associations, and 

individuals addressing the PPPLF 

interim final rule. Several commenters 

expressed support for the agencies’ 

actions under the PPPLF capital interim 

final rule, and two of these commenters 

further supported the agencies’ 

determination that good cause existed to 

issue the interim final rules without 

notice and comment. Several 

commenters suggested that the agencies 

extend the zero percent risk weight to 

PPP covered loans purchased in 

secondary markets. The agencies note 

that, under the PPPLF capital interim 

final rule, the risk weight for all PPP 

covered loans is zero percent. 

Several commenters asserted that the 

PPPLF capital interim final rule should 

extend the leverage exclusion to PPP 

covered loans that are not pledged to the 

PPPLF, arguing that the treatment could 

discourage banking organizations that 

are not using the PPPLF from making 

PPP covered loans. Notwithstanding 

these arguments, the agencies are 

adopting as final the PPPLF capital 

interim final rule. The CARES Act set 

the risk weight of these loans at zero 

percent and did not exclude these loans 

from the leverage capital requirements. 

The favorable leverage capital treatment 

in the PPPLF capital interim final rule 

reflects the non-recourse nature of the 

relevant Federal Reserve Bank’s 

extension of credit to a banking 

organization only for PPP covered loans 

pledged by a banking organization to a 

Federal Reserve Bank. 

Comments on the LCR Interim Final 

Rule 

The agencies received one comment 

letter, from a trade association, on the 

LCR interim final rule. The commenter 

supported the requirements under the 

LCR interim final rule, arguing that the 

requirements encourage participation in 

the facilities, which ultimately provides 

benefits to small businesses, 

households, and investors. 

III. Summary of the Final Rule 

For the reasons discussed above, the 

agencies are adopting as final the 

revisions to the capital and LCR rules 

unchanged from the interim final rules. 

Accordingly, a banking organization 

may continue to exclude assets acquired 

as part of the MMLF and PPP covered 

loans pledged under the PPPLF from its 

total leverage exposure, average total 

consolidated assets, advanced 

approaches total risk-weighted assets, 

and standardized total risk-weighted 

assets, as applicable (and for purposes 

of the community bank leverage ratio).13

Further, a banking organization must 

continue to apply a zero percent risk 

weight to all PPP covered loans that are 

not pledged to the PPPLF (regardless of 

whether the banking organization 

originated the loan). In addition, a 

banking organization subject to the LCR 

rule is required to continue excluding 

from its total net cash outflow amount 

outflow amounts associated with 

advances from the MMLF and PPPLF 

and inflow amounts associated with 

collateral securing the advances. 

IV. Administrative Law Matters 

A. Congressional Review Act 

For purposes of the Congressional 

Review Act, the Office of Management 

and Budget (OMB) makes a 

determination as to whether a final rule 

constitutes a ‘‘major’’ rule.14 If a rule is 

deemed a ‘‘major rule’’ by the OMB, the 

Congressional Review Act generally 

provides that the rule may not take 

effect until at least 60 days following its 

publication.15

The Congressional Review Act defines 

a ‘‘major rule’’ as any rule that the 

Administrator of the Office of 

Information and Regulatory Affairs of 

the OMB finds has resulted in or is 

likely to result in (A) an annual effect 

on the economy of $100,000,000 or 

more; (B) a major increase in costs or 

prices for consumers, individual 

industries, Federal, State, or local 

government agencies or geographic 

regions; or (C) significant adverse effects 

on competition, employment, 

investment, productivity, innovation, or 

on the ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

export markets.16

As required by the Congressional 

Review Act, the agencies will submit 

the final rule and other appropriate 

reports to Congress and the Government 

Accountability Office for review. 

B. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3521) (PRA) states that 

no agency may conduct or sponsor, nor 

is the respondent required to respond 

to, an information collection unless it 

displays a currently valid OMB control 

number. This final rule does not contain 

any information collection 

requirements. However, in connection 

with the interim final rules, the Board 

temporarily revised the Financial 

Statements for Holding Companies (FR 

Y–9 reports; OMB No. 7100–0128) and 

the Complex Institution Liquidity 

Monitoring Report (FR 2052a; OMB No. 

7100–0361) and invited comment on 

proposals to extend those collections of 

information for three years, with 

revision.17

Additionally, in connection with the 

interim final rules, the agencies made 

revisions to the Call Reports (OCC OMB 

Control No. 1557–0081; Board OMB 

Control No. 7100–0036; FDIC OMB 

Control No. 3064–0052), the Report of 

Assets and Liabilities of U.S. Branches 

and Agencies of Foreign Banks (FFIEC 

002; OMB Control No. 7100–0032), and 

the Regulatory Capital Reporting for 

Institutions Subject to the Advanced 

Capital Adequacy Framework (FFIEC 

101; OCC OMB Control No. 1557–0239; 

Board OMB Control No. 7100–0319; 

FDIC OMB Control No. 3064–0159). The 

changes to the Call Reports, FFIEC 002, 

and FFIEC 101 and their related 

instructions are addressed in a separate 

Federal Register notice.18

Current Actions 

The Board has extended the FR Y–9 

and FR 2052a for three years, with 


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19An SLHC must file one or more of the FR Y– 

9 family of reports unless it is: (1) A grandfathered 

unitary SLHC with primarily commercial assets and 

thrifts that make up less than five percent of its 

consolidated assets; or (2) a SLHC that primarily 

holds insurance-related assets and does not 

otherwise submit financial reports with the SEC 

pursuant to section 13 or 15(d) of the Securities 

Exchange Act of 1934. 

20Under certain circumstances described in the 

FR Y–9C’s General Instructions, HCs with assets 

under $3 billion may be required to file the FR Y– 

9C. 

21A top-tier HC may submit a separate FR Y–9LP 

on behalf of each of its lower-tier HCs. 

revision, as originally proposed. The 

updates to the FR Y–9 and FR 2052a 

resulted in an estimated zero net change 

in hourly burden. No public comments 

were received regarding these proposals 

under the PRA. 

Revision, With Extension, of the 

Following Information Collections 

(1) Report title: Financial Statements 

for Holding Companies. 

Agency form numbers: FR Y–9C, FR 

Y–9LP, FR Y–9SP, FR Y–9ES, and FR 

Y–9CS. 

OMB control number: 7100–0128. 

Effective date: December 28, 2020. 

Frequency: Quarterly, semiannually, 

and annually. 

Affected public: Businesses or other 

for-profit. 

Respondents: Bank holding 

companies (BHCs), savings and loan 

holding companies (SLHCs), securities 

holding companies (SHCs), and U.S. 

intermediate holding companies (IHCs) 

(collectively, holding companies 

(HCs)).19

Estimated number of respondents: 

FR Y–9C (non-advanced approaches 

(AA) HCs community bank leverage 

ratio (CBLR)) with less than $5 billion 

in total assets—71, 

FR Y–9C (non AA HCs CBLR) with $5 

billion or more in total assets—35, 

FR Y–9C (non AA HCs non-CBLR) 

with less than $5 billion in total assets— 

84, 

FR Y–9C (non AA HCs non-CBLR) 

with $5 billion or more in total assets— 

154, 

FR Y–9C (AA HCs)—19, 

FR Y–9LP—434, 

FR Y–9SP—3,960, 

FR Y–9ES—83, 

FR Y–9CS—236. 

Estimated average hours per response: 

Reporting 

FR Y–9C (non AA HCs CBLR) with 

less than $5 billion in total assets— 

29.17, 

FR Y–9C (non AA HCs CBLR) with $5 

billion or more in total assets—35.14, 

FR Y–9C (non AA HCs non-CBLR) 

with less than $5 billion in total assets— 

41.01, 

FR Y–9C (non AA HCs non-CBLR) 

with $5 billion or more in total assets— 

46.98, 

FR Y–9C (AA HCs)—48.80, 

FR Y–9LP—5.27, 

FR Y–9SP—5.40, 

FR Y–9ES—0.50, 

FR Y–9CS—0.50. 

Recordkeeping 

FR Y–9C—1, 

FR Y–9LP—1, 

FR Y–9SP—0.50, 

FR Y–9ES—0.50, 

FR Y–9CS—0.50. 

Estimated annual burden hours: 

Reporting 

FR Y–9C (non AA HCs CBLR) with 

less than $5 billion in total assets— 

8,284, 

FR Y–9C (non AA HCs CBLR) with $5 

billion or more in total assets—4,920, 

FR Y–9C (non AA HCs non-CBLR) 

with less than $5 billion in total assets— 

13,779, 

FR Y–9C (non AA HCs non-CBLR) 

with $5 billion or more in total assets— 

28,940, 

FR Y–9C (AA HCs)—3,709, 

FR Y–9LP—9,149, 

FR Y–9SP—42,768, 

FR Y–9ES—42, 

FR Y–9CS—472. 

Recordkeeping 

FR Y–9C—1,452, 

FR Y–9LP—1,736, 

FR Y–9SP—3,960, 

FR Y–9ES—42, 

FR Y–9CS—472. 

General description of report: The FR 

Y–9C consists of standardized financial 

statements similar to the Call Reports 

filed by banks and savings associations. 

The FR Y–9C collects consolidated data 

from HCs and is filed quarterly by toptier HCs with total consolidated assets 

of $3 billion or more.20

The FR Y–9LP, which collects parent 

company only financial data, must be 

submitted by each HC that files the FR 

Y–9C, as well as by each of its 

subsidiary HCs.21 The report consists of 

standardized financial statements. 

The FR Y–9SP is a parent company 

only financial statement filed 

semiannually by HCs with total 

consolidated assets of less than $3 

billion. In a banking organization with 

total consolidated assets of less than $3 

billion that has tiered HCs, each HC in 

the organization must submit, or have 

the top-tier HC submit on its behalf, a 

separate FR Y–9SP. This report is 

designed to obtain basic balance sheet 

and income data for the parent 

company, and data on its intangible 

assets and intercompany transactions. 

The FR Y–9ES is filed annually by 

each employee stock ownership plan 

(ESOP) that is also an HC. The report 

collects financial data on the ESOP’s 

benefit plan activities. The FR Y–9ES 

consists of four schedules: A Statement 

of Changes in Net Assets Available for 

Benefits, a Statement of Net Assets 

Available for Benefits, Memoranda, and 

Notes to the Financial Statements. 

The FR Y–9CS is a free-form 

supplemental report that the Board may 

utilize to collect critical additional data 

deemed to be needed in an expedited 

manner from HCs on a voluntary basis. 

The data are used to assess and monitor 

emerging issues related to HCs, and the 

report is intended to supplement the 

other FR Y–9 reports. The data items 

included on the FR Y–9CS may change 

as needed. 

Legal authorization and 

confidentiality: The Board has the 

authority to impose the reporting and 

recordkeeping requirements associated 

with the FR Y–9 family of reports on 

BHCs pursuant to section 5 of the Bank 

Holding Company Act of 1956 (BHC 

Act) (12 U.S.C. 1844); on SLHCs 

pursuant to section 10(b)(2) and (3) of 

the Home Owners’ Loan Act (12 U.S.C. 

1467a(b)(2) and (3)), as amended by 

sections 369(8) and 604(h)(2) of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank 

Act); on U.S. IHCs pursuant to section 

5 of the BHC Act (12 U.S.C. 1844), as 

well as pursuant to sections 102(a)(1) 

and 165 of the Dodd-Frank Act (12 

U.S.C. 511(a)(1) and 5365); and on SHCs 

pursuant to section 618 of the DoddFrank Act (12 U.S.C. 1850a(c)(1)(A)). 

The obligation to submit the FR Y–9 

series of reports, and the recordkeeping 

requirements set forth in the respective 

instructions to each report, are 

mandatory, except for the FR Y–9CS, 

which is voluntary. 

With respect to the FR Y–9C report, 

Schedule HI’s data item 7(g), ‘‘FDIC 

deposit insurance assessments,’’ 

Schedule HC–P’s data item 7(a), 

‘‘Representation and warranty reserves 

for 1–4 family residential mortgage 

loans sold to U.S. government agencies 

and government sponsored agencies,’’ 

and Schedule HC–P’s data item 7(b), 

‘‘Representation and warranty reserves 

for 1–4 family residential mortgage 

loans sold to other parties’’ are 

considered confidential commercial and 

financial information. Such treatment is 

appropriate under exemption 4 of the 

Freedom of Information Act (FOIA) (5 

U.S.C. 552(b)(4)) because these data 

items reflect commercial and financial 

information that is both customarily and 

actually treated as private by the 

submitter, and which the Board has 


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68248 Federal Register / Vol. 85, No. 209 / Wednesday, October 28, 2020 / Rules and Regulations 

22 12 U.S.C. 4802(a). 

previously assured submitters will be 

treated as confidential. It also appears 

that disclosing these data items may 

reveal confidential examination and 

supervisory information, and in such 

instances, this information would also 

be withheld pursuant to exemption 8 of 

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

protects information related to the 

supervision or examination of a 

regulated financial institution. 

In addition, for both the FR Y–9C 

report, Schedule HC’s memorandum 

item 2.b. and the FR Y–9SP report, 

Schedule SC’s memorandum item 2.b., 

the name and email address of the 

external auditing firm’s engagement 

partner, is considered confidential 

commercial information and protected 

by exemption 4 of the FOIA (5 U.S.C. 

552(b)(4)) if the identity of the 

engagement partner is treated as private 

information by HCs. The Board has 

assured respondents that this 

information will be treated as 

confidential since the collection of this 

data item was proposed in 2004. 

Additionally, items on the FR Y–9C, 

Schedule HC–C for loans modified 

under Section 4013, data items 

Memorandum items 16.a, ‘‘Number of 

Section 4013 loans outstanding’’; and 

Memorandum items 16.b, ‘‘Outstanding 

balance of Section 4013 loans’’ are 

considered confidential. While the 

Board generally makes institution-level 

FR Y–9C report data publicly available, 

the Board is collecting Section 4013 

loan information as part of condition 

reports for the impacted HCs and the 

Board considers disclosure of these 

items at the HC level would not be in 

the public interest. Such information is 

permitted to be collected on a 

confidential basis, consistent with 5 

U.S.C. 552(b)(8). In addition, holding 

companies may be reluctant to offer 

modifications under Section 4013 if 

information on these modifications 

made by each holding company is 

publicly available, as analysts, 

investors, and other users of public FR 

Y–9C report information may penalize 

an institution for using the relief 

provided by the CARES Act. The Board 

may disclose Section 4013 loan data on 

an aggregated basis, consistent with 

confidentiality considerations. 

Aside from the data items described 

above, the remaining data items on the 

FR Y–9C report and the FR Y–9SP 

report are generally not accorded 

confidential treatment. The data items 

collected on FR Y–9LP, FR Y–9ES, and 

FR Y–9CS reports, are also generally not 

accorded confidential treatment. As 

provided in the Board’s Rules Regarding 

Availability of Information (12 CFR part 

261), however, a respondent may 

request confidential treatment for any 

data items the respondent believes 

should be withheld pursuant to a FOIA 

exemption. The Board will review any 

such request to determine if confidential 

treatment is appropriate, and will 

inform the respondent if the request for 

confidential treatment has been denied. 

To the extent the instructions to the 

FR Y–9C, FR Y–9LP, FR Y–9SP, and FR 

Y–9ES reports each respectively direct 

the financial institution to retain the 

work papers and related materials used 

in preparation of each report, such 

material would only be obtained by the 

Board as part of the examination or 

supervision of the financial institution. 

Accordingly, such information is 

considered confidential pursuant to 

exemption 8 of the FOIA (5 U.S.C. 

552(b)(8)). In addition, the financial 

institution’s work papers and related 

materials may also be protected by 

exemption 4 of the FOIA, to the extent 

such financial information is treated as 

confidential by the respondent (5 U.S.C. 

552(b)(4)). 

(2) Report title: Complex Institution 

Liquidity Monitoring Report. 

Agency form number: FR 2052a. 

OMB control number: 7100–0361. 

Effective date: December 28, 2020. 

Frequency: Monthly, and each 

business day (daily). 

Affected public: Businesses or other 

for-profit. 

Respondents: U.S. BHCs, U.S. SLHCs, 

and foreign banking organizations 

(FBOs) with U.S. assets. 

Estimated number of respondents: 

Monthly, 26; daily, 16. 

Estimated average hours per response: 

Monthly, 120; daily, 220. 

Estimated annual burden hours: 

917,440. 

General description of report: The 

Board uses the FR 2052a to monitor the 

overall liquidity profile of supervised 

institutions. These data provide detailed 

information on the liquidity risks within 

different business lines (e.g., financing 

of securities positions, prime brokerage 

activities). In particular, these data serve 

as part of the Board’s supervisory 

surveillance program in its liquidity risk 

management area and provide timely 

information on firm-specific liquidity 

risks during periods of stress. Analyses 

of systemic and idiosyncratic liquidity 

risk issues are then used to inform the 

Board’s supervisory processes, 

including the preparation of analytical 

reports that detail funding 

vulnerabilities. 

Legal authorization and 

confidentiality: The FR 2052a is 

authorized pursuant to section 5 of the 

BHC Act (12 U.S.C. 1844), section 8 of 

the International Banking Act (12 U.S.C. 

3106), section 165 of the Dodd-Frank 

Act (12 U.S.C. 5365), and section 10 of 

the Home Owners’ Loan Act (12 U.S.C. 

1467(a)) and is mandatory. Section 5(c) 

of the BHC Act authorizes the Board to 

require BHCs to submit reports to the 

Board regarding their financial 

condition. Section 8(a) of the 

International Banking Act subjects FBOs 

to the provisions of the BHC Act. 

Section 165 of the Dodd-Frank Act 

requires the Board to establish 

prudential standards for certain BHCs 

and FBOs, which include liquidity 

requirements. Section 10(g) of the Home 

Owners’ Loan Act authorizes the Board 

to collect reports from SLHCs. 

Financial institution information 

required by the FR 2052a is collected as 

part of the Board’s supervisory process. 

Therefore, such information is entitled 

to confidential treatment under 

Exemption 8 of the FOIA (5 U.S.C. 

552(b)(8)). In addition, the institution 

information provided by each 

respondent would not be otherwise 

available to the public and its disclosure 

could cause substantial competitive 

harm. Accordingly, it is entitled to 

confidential treatment under the 

authority of exemption 4 of the FOIA (5 

U.S.C. 552(b)(4)), which protects from 

disclosure trade secrets and commercial 

or financial information. 

C. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

requires an agency to consider whether 

the rules it proposes will have a 

significant economic impact on a 

substantial number of small entities. 

The RFA requires an agency to prepare 

a final regulatory flexibility analysis 

when it promulgates a final rule after 

being required to publish a general 

notice of proposed rulemaking. As 

discussed previously, the agencies have 

decided to adopt, without changes, 

revisions to the capital and LCR rules 

made under the interim final rules. 

There was no general notice of proposed 

rulemaking associated with the interim 

final rules or this final rule. 

Accordingly, the agencies have 

concluded that the RFA’s requirements 

relating to initial and final regulatory 

flexibility analyses do not apply to the 

promulgation of this final rule. 

D. Riegle Community Development and 

Regulatory Improvement Act of 1994 

Pursuant to section 302(a) of the 

Riegle Community Development and 

Regulatory Improvement Act 

(RCDRIA),22 in determining the effective 

date and administrative compliance 

requirements for new regulations that 


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Federal Register / Vol. 85, No. 209 / Wednesday, October 28, 2020 / Rules and Regulations 68249 

23 12 U.S.C. 4802. 

24 12 U.S.C. 4809. 

25See 2 U.S.C. 1532(a). 

impose additional reporting, disclosure, 

or other requirements on insured 

depository institutions (IDIs), each 

Federal banking agency must consider, 

consistent with the principle of safety 

and soundness and the public interest, 

any administrative burdens that the 

regulations would place on depository 

institutions, including small depository 

institutions and customers of depository 

institutions, as well as the benefits of 

the regulations. In addition, section 

302(b) of RCDRIA requires new 

regulations and amendments to 

regulations that impose additional 

reporting, disclosures, or other new 

requirements on IDIs generally to take 

effect on the first day of a calendar 

quarter that begins on or after the date 

on which the regulations are published 

in final form.23 Each Federal banking 

agency has determined that the final 

rule would not impose additional 

reporting, disclosure, or other 

requirements; therefore the 

requirements of the RCDRIA do not 

apply. 

E. Use of Plain Language 

Section 722 of the Gramm-LeachBliley Act 24 requires the Federal 

banking agencies to use ‘‘plain 

language’’ in all proposed and final 

rules published after January 1, 2000. In 

light of this requirement, the agencies 

have sought to present the final rule in 

a simple and straightforward manner. 

The agencies did not receive any 

comments on the use of plain language 

in the interim final rules. 

F. OCC Unfunded Mandates Reform Act 

of 1995 

As a general matter, the Unfunded 

Mandates Act of 1995 (UMRA), 2 U.S.C. 

1531 et seq., requires the preparation of 

a budgetary impact statement before 

promulgating a rule that includes a 

Federal mandate that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year. However, the UMRA 

does not apply to final rules for which 

a general notice of proposed rulemaking 

was not published.25 Because there was 

no general notice of proposed 

rulemaking associated with the interim 

final rules or the final rule, the OCC 

concludes that the requirements of the 

UMRA do not apply to this final rule. 

Authority and Issuance 

For the reasons set forth in the joint 

SUPPLEMENTARY INFORMATION section, the 

interim final rules, which were 

published at 85 FR 16232, 85 FR 20387, 

and 85 FR 26835 on March 23, April 13, 

and May 6, 2020, are adopted as a final 

rule by the OCC, Board, and FDIC 

without change. 

Brian P. Brooks, 

Acting Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann E. Misback, 

Secretary of the Board. 

Federal Deposit Insurance Corporation. 

By order of the Board of Directors. 

Dated at Washington, DC, on or about 

September 15, 2020. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2020–21894 Filed 10–27–20; 8:45 am] 

BILLING CODE 4810–33–6210–01–6714–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9901] 

RIN 1545–BO55 

Deduction for Foreign-Derived 

Intangible Income and Global 

Intangible Low-Taxed Income; 

Correcting Amendments 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendments. 

SUMMARY: This document contains 

corrections to the Treasury Decision 

9901, which was published in the 

Federal Register on Wednesday July 15, 

2020. Treasury Decision 9901 contained 

final regulations that provide guidance 

regarding the deduction for foreignderived intangible income (FDII) and 

global intangible low-taxed income 

(GILTI) and for coordinating the 

deduction for FDII and GILTI with other 

provisions in the Internal Revenue 

Code. 

DATES: These corrections are effective 

on October 28, 2020. For dates of 

applicability, see §§ 1.250–1(b) and 

1.861–8(h). 

FOR FURTHER INFORMATION CONTACT: Brad 

McCormack at (202) 317–6911 and 

Lorraine Rodriguez at (202) 317–6726 

(not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9901) that 

are the subject of this correction are 

under sections 250 and 861 of the 

Internal Revenue Code. 

Need for Correction 

As published on July 15, 2020 (85 FR 

43042), the final regulations (TD 9901; 

FR Doc. 2020–14649) contains errors 

that need to be corrected. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

Accordingly, 26 CFR part 1 is 

corrected by making the following 

correcting amendments: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

§ 1.250–1 [Amended] 

■ Par. 2. Section 1.250–1, paragraph (b), 

is amended by adding at the end of the 

third sentence ‘‘, but once applied, 

taxpayers must apply the final 

regulations for all subsequent taxable 

years beginning before January 1, 2021’’. 

§ 1.250(b)–4 [Amended] 

■ Par. 3. Section 1.250(b)–4 is amended: 

■ a. In the last sentence of paragraph 

(d)(1)(ii)(D), by adding ‘‘for the seller’s 

taxable year’’ after the words ‘‘less than 

$50,000’’. 

■ b. In the last sentence of paragraph 

(d)(2)(ii)(A), by adding ‘‘or (iii)’’ after 

‘‘(d)(1)(ii)’’. 

■ c. In paragraph (d)(2)(iv)(B)(10)(ii), by 

removing ‘‘potion’’ and adding in its 

place ‘‘portion’’. 

■ Par. 4. Section 1.250(b)–5 is amended: 

■ a. In paragraph (c)(1), by removing ‘‘to 

consumers’’; 

■ b. In the first sentence of paragraph 

(e)(2)(iii), by removing ‘‘accesses the 

service’’ and adding in its place 

‘‘accesses or otherwise uses the 

service’’; 

■ c. By revising paragraph 

(e)(5)(ii)(F)(1); and 

■ d. By revising the third and fourth 

sentences of paragraph (e)(5)(ii)(F)(2). 

The revisions read as follows: 

§ 1.250(b)–5 Foreign-derived deduction 

eligible income (FDDEI) services. 

* * * * * 

(e) * * * 

(5) * * * 

(ii) * * * 

(F) Example 6: Electronically supplied 

services that are accessed by the 

business recipient—(1) Facts. DC 

maintains an inventory management 


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