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FEDERAL RESERVE SYSTEM
12 CFR Part 217
Regulations Q; Docket No. R-1707; RIN 7100-AF81
Regulatory Capital Rule: Temporary Exclusion of U.S. Treasury Securities and Deposits at
Federal Reserve Banks from the Supplementary Leverage Ratio
AGENCY: Board of Governors of the Federal Reserve System (Board).
ACTION: Interim final rule and request for comment.
SUMMARY: In light of recent disruptions in economic conditions caused by the coronavirus
disease 2019 (COVID-19) and current strains in U.S. financial markets, the Board is issuing an
interim final rule that revises, on a temporary basis for bank holding companies, savings and loan
holding companies, and U.S. intermediate holding companies of foreign banking organizations,
the calculation of total leverage exposure, the denominator of the supplementary leverage ratio in
the Board’s capital rule, to exclude the on-balance sheet amounts of U.S. Treasury securities and
deposits at Federal Reserve Banks. This exclusion has immediate effect and will remain in effect
through March 31, 2021. The Board is adopting this interim final rule to allow bank holding
companies, savings and loan holding companies, and intermediate holding companies subject to
the supplementary leverage ratio increased flexibility to continue to act as financial
intermediaries. The tier 1 leverage ratio is not affected by this rulemaking.
DATES: Effective date: The amendments are effective [DATE OF PUBLICATION IN THE
FEDERAL REGISTER]. Comments on the interim final rule must be received no later than
[45 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER].

ADDRESSES:
You may submit comments, identified by Docket No. R-1707; RIN 7100-AF81, by any of the
following methods:
•

Agency website: http://www.federalreserve.gov. Follow the instructions for submitting

comments at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
•

E-mail: regs.comments@federalreserve.gov. Include docket and RIN numbers in the

subject line of the message.
•

FAX: (202) 452-3819 or (202) 452-3102.

•

Mail: Ann E. Misback, Secretary, Board of Governors of the Federal Reserve System,

20th Street and Constitution Avenue, NW, Washington, DC 20551.
All public comments will be made available on the Board’s web site at
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, unless modified
for technical reasons or to remove personally identifiable information at the commenter’s
request. Accordingly, comments will not be edited to remove any identifying or contact
information. Public comments may also be viewed electronically or in paper in Room 146, 1709
New York Avenue, NW, Washington, DC 20006, between 9:00 a.m. and 5:00 p.m. on weekdays.
For security reasons, the Board requires that visitors make an appointment to inspect comments.
You may do so by calling (202) 452-3684.
FOR FURTHER INFORMATION CONTACT:
Anna Lee Hewko, Associate Director, (202) 530-6360; Constance Horsley, Deputy Associate
Director, (202) 452-5239; Elizabeth MacDonald, Manager, (202) 475-6316; Sviatlana Phelan,
Lead Financial Institution Policy Analyst, (202) 912-4306; or Christopher Appel, Senior
Financial Institution Policy Analyst II, (202) 973-6862, Division of Supervision and Regulation;
Benjamin McDonough, Assistant General Counsel, (202) 452-2036; Mark Buresh, Senior
Page 2 of 35

Counsel, (202) 452-5270; Andrew Hartlage, Counsel, (202) 452-6483; Jeffery Zhang, Attorney,
(202) 736-1968; or Jasmin Keskinen, Legal Assistant, (202) 475-6650, Legal Division, Board of
Governors of the Federal Reserve System, 20th Street and Constitution Avenue, NW,
Washington, DC 20551. Users of Telecommunication Device for Deaf (TDD) only, call (202)
263-4869.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. The Interim Final Rule
III. Impact Assessment
IV. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Riegle Community Development and Regulatory Improvement Act of 1994
F. Use of Plain Language
I. Background
Recent events have significantly and adversely impacted global financial markets. The
spread of the Coronavirus Disease 2019 (COVID-19) has slowed economic activity in many
countries, including the United States. In particular, sudden disruptions in financial markets
have caused banking organizations’ balance sheets to expand due to customer draws on credit
lines, acquisition of significant amounts of U.S. Treasury securities (Treasuries), as well as other

Page 3 of 35

financial intermediary activities. As a result, banking organizations have been making
substantial deposits in their accounts at Federal Reserve Banks (deposits at Federal Reserve
Banks) and these trends are expected to continue to increase temporarily while banking
organizations respond to disruptions in the financial markets.
For a bank holding company, savings and loan holding company, or U.S. intermediate
holding company required to be established or designated under section 252.153 of the Board’s
Regulation YY (holding company) that is a global systemically important bank holding company
(GSIB) or subject to Category II or Category III capital standards, the capital rule requires a
minimum supplementary leverage ratio of 3 percent, measured as the ratio of a banking
organization’s tier 1 capital to its total leverage exposure. 1 Total leverage exposure, the
denominator of the supplementary leverage ratio, includes certain off-balance sheet exposures in
addition to on-balance sheet assets.
GSIBs also are subject to enhanced supplementary leverage ratio (eSLR) standards. 2
Under the eSLR, GSIB top-tier bank holding companies must maintain a supplementary leverage
ratio greater than 3 percent plus a leverage buffer of 2 percent to avoid limitations on the banking
organization’s capital distributions and certain discretionary bonus payments. 3

1

See 84 FR 59230 (Nov. 1, 2019). Holding companies that are subject to Category II standards
include those with (1) at least $700 billion in total consolidated assets or (2) at least $75 billion
in cross-jurisdictional activity and at least $100 billion in total consolidated assets. Depository
institution holding companies that are subject to Category III standards include those with (1) at
least $250 billion in average total consolidated assets or (2) at least $100 billion in average total
consolidated assets and at least $75 billion in average total nonbank assets, average weighted
short-term wholesale funding; or average off-balance sheet exposure. See 12 CFR 217.2.
Depository institutions may also be subject to the supplementary leverage ratio.
2

See 79 FR 24528 (May 1, 2014); 80 FR 49082 (August 14, 2015).

3

GSIB depository institution subsidiaries must maintain a 6-percent supplementary leverage
ratio to be considered “well capitalized” under the Board’s prompt corrective action (PCA)
framework. 79 FR 24528.
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II. The Interim Final Rule
In contrast to the risk-based capital requirements, a leverage ratio does not differentiate
the amount of capital required by exposure type. Rather, a leverage ratio puts a simple and
transparent lower bound on banking organization leverage. A leverage ratio protects against
underestimation of risk both by banking organizations and by risk-based capital requirements
and serves as a complement to risk-based capital requirements. Under the supplementary
leverage ratio, banking organizations include all their on-balance sheet assets, including
Treasuries and deposits at Federal Reserve Banks, in total leverage exposure.
The ability of institutions to hold certain assets, most notably deposits held at a Reserve
Bank for a depository institution and Treasury securities, is essential to market functioning,
financial intermediation, and funding market activity, particularly in periods of financial
uncertainty. In response to volatility and market strains in recent weeks, the Federal Reserve has
taken several actions to support market functioning and the flow of credit to the economy. The
response to COVID-19 has notably increased the size of the Federal Reserve’s balance sheet and
resulted in a large increase in the amount of reserves in the banking system. The Federal
Reserve’s balance sheet will continue to expand in the near term, as asset purchases continue and
recently-announced facilities to support the flow of credit to households and business begin
operations. In addition, market participants have liquidated a high volume of assets and
deposited the cash proceeds with banking organizations in recent weeks, further increasing the
size of banking organizations’ balance sheets.
Absent any adjustments, the resulting increase in the size of banking organizations’
balance sheets may cause a sudden and significant increase in the regulatory capital needed to
meet a holding company’s supplementary leverage ratio requirement. This is particularly the

Page 5 of 35

case for many holding companies subject to the supplementary leverage ratio, which are
significant participants in financial intermediation services, including as primary dealers in the
open market operations of the Federal Open Market Committee (FOMC) and as major
custodians of securities.
The Federal Reserve’s role in conducting monetary policy includes achieving rate control
through open market operations of Treasury securities and supporting Treasury market
functioning more broadly. A liquid and smooth functioning of the Treasury market is important
to monetary policy implementation and financial stability. Open market operations have long
been used to supply reserves to the banking system and to help control the federal funds rate and
keep it in the target range set by the FOMC. Part of the crisis response in recent weeks has been
a substantial increase in the size and frequency of open market operations.
In order to facilitate holding companies’ significant increase in reserve balances resulting
from the Federal Reserve’s asset purchases and the establishment of various programs to support
the flow of credit to the economy, as well as the need for these institutions to continue to accept
exceptionally high levels of customer deposits, the Board is issuing this interim final rule to
temporarily exclude Treasuries and deposits at Federal Reserve Banks from total leverage
exposure for these institutions through March 31, 2021, as calculated under the Board’s capital
rule. 4 For purposes of reporting the supplementary leverage ratio as of June 30, 2020, banking

4

The Board, together with the Office of the Comptroller of the Currency and the Federal
Deposit Insurance Corporation, recently issued a final rule, effective April 1, 2020, which
implements section 402 of the Economic Growth, Regulatory Relief, and Consumer Protection
Act by amending the capital rule to allow a banking organization that qualifies as a custodial
banking organization to exclude from total leverage exposure deposits at qualifying central
banks, subject to limits (402 rule). The 402 rule came into effect on April 1, 2020. Holding
companies will be able to exclude deposits at Federal Reserve Banks from total leverage
exposure under this interim final rule and those that are also custodial banking organizations will
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organizations subject to this interim final rule must reflect the exclusion of Treasuries and
deposits at Federal Reserve Banks from total leverage exposure, as if this interim final rule had
been in effect for the entire second quarter of 2020. This will have the effect of reducing any
constraint imposed by the supplementary leverage ratio on these exposures as these banking
organizations respond to market disruptions. The Board is providing the temporary exclusion
contained in the interim final rule in order to allow banking organizations to expand their balance
sheets as appropriate to continue to serve as financial intermediaries, rather than to allow
banking organizations to increase capital distributions, and will administer the interim final rule
accordingly. This interim final rule does not affect the tier 1 leverage ratio, which will continue
to serve as a backstop for all banking organizations subject to the capital rule. 5
The interim final rule revises the measure of total leverage exposure on a temporary basis
for the limited purposes of the Board’s capital rule and reporting the supplementary leverage
ratio on FR Y-9C only. 6 Currently, holding companies report their supplementary leverage
ratios on Regulatory Capital Reporting for Institutions Subject to the Advanced Capital
Adequacy Framework (FFIEC 101), Schedule A; and the Board’s FR Y-9C report, Schedule

also be able to exclude the lesser of deposits at foreign qualifying central banks and amount of
funds in deposit accounts at the custodial banking organization that are linked to fiduciary or
custodial and safekeeping accounts at the custodial banking organization.
5

The tier 1 leverage ratio measures the ratio of tier 1 capital to average total consolidated assets.
Banking organizations subject to the capital rule must maintain a minimum tier 1 leverage ratio
of 4 percent.
6

This interim final rule will also impact the requirements of the Board’s total loss-absorbing
capacity rule. Specifically, the minimum total loss-absorbing capacity and long-term debt
requirements based on total leverage exposure will be impacted by the interim final rule’s
exclusion of assets from total leverage exposure. See 12 CFR part 252, subparts G and P.

Page 7 of 35

HC-R. 7 This rule does not affect the reporting of the supplementary leverage ratio on the
interagency FFIEC reporting schedules. The Board is making conforming changes to the
Board’s Y-9C to reflect the interim final rule’s revisions to the supplementary leverage ratio. In
addition, the interim final rule provides for the necessary modifications of the disclosure
requirements of section 173 of the capital rule, as applicable to holding companies, to reflect the
exclusion provided by the interim final rule. The Board also is revising the FR Y-15 to prevent
the interim final rule’s temporary exclusions from total leverage exposure from impacting the
measurement of the size systemic indicator. The changes to the Board’s information collections
are described in the Paperwork Reduction Act discussion below.
The Board seeks comment on all aspects of this interim final rule.
Question 1: Discuss the advantages and disadvantages of removing Treasuries and
deposits at Federal Reserve Banks from total leverage exposure. How does the interim final rule
support the objectives of facilitating financial intermediation by banking organizations? What
other steps could be taken to support this objective in the current environment? How does the
interim final rule impact the concurrent objective of safety and soundness? Is the end date of
March 31, 2021, for the exclusion under the interim final rule consistent with the objectives of
the rule or should an earlier or a later end date be used instead, and, if so, why?
Question 2: What additional assets or exposure types should the Board consider to
exclude temporarily from total leverage exposure in order to achieve the interim final rule’s
objectives? For example, should the Board exclude deposits at certain foreign central banks,
foreign sovereign debt instruments, or exposures guaranteed by the U.S. federal government

7

Banking organizations that are required to submit the FR Y-14A on April 6, 2020, have the
option to include these changes in their stress test results, for purposes of their projections in the
second quarter of 2020 through the first quarter of 2021.
Page 8 of 35

and, if yes, why? Should the Board exclude any specific repo-style transactions that would
support banking organizations’ role as financial intermediaries, and, if yes, why?
Question 3: The interim final rule modifies the supplementary leverage ratio for
purposes of the Board’s capital rule and, indirectly, other rules including the Board’s total lossabsorbing capacity rule, but includes revisions to the Board’s FR Y-15 so that the size systemic
indicator is not impacted by this interim final rule. What would be the advantages and
disadvantages of the Board temporarily excluding Treasuries and deposits at Federal Reserve
Banks from the size systemic indicator on the FR Y-15?
III. Impact Assessment
In the past, the supplementary leverage ratio requirement has not prevented banking
organizations from supporting the orderly functioning of the Treasury market or serving as
financial intermediaries. However, as a result of the ongoing COVID-19 crisis, stress has
materialized in numerous financial markets. In particular, liquidity conditions in the Treasury
market have deteriorated in past weeks, evidenced by widening bid-ask spreads that remain
elevated despite increased open market operations by the Federal Reserve. Large holding
companies have cited balance sheet constraints for their broker-dealer subsidiaries as an obstacle
to supporting the Treasury market. Specifically, the supplementary leverage ratio can limit
holding companies’ ability to own Treasuries outright as well as to increase deposits at the
Federal Reserve Banks.
Temporarily excluding Treasuries and deposits at Federal Reserve Banks from the
denominator of the supplementary leverage ratio increases leverage exposure capacity of a
banking organizations. In particular, using data from the fourth quarter of 2019, the Board
expects that the interim final rule would temporarily decrease binding tier 1 capital requirements

Page 9 of 35

by around $17 billion for bank holding companies. 8 This impact assessment does not take into
account the exclusion of qualifying central bank deposits for custodial banking organizations as
outlined in Section 402 in EGRRCPA. 9 Beginning April 1, 2020, custodial banking
organizations will also be able to exclude deposits with qualifying foreign central banks subject
to the limits in Section 402, in addition to the deductions under this rule. In light of the proposed
exclusions under this rule, this temporary reduction in capital requirements is expected to
increase leverage exposure capacity at holding companies by around $1.6 trillion. In particular,
the Board expects that the increase in leverage exposure capacity will facilitate intermediation by
broker-dealer subsidiaries of bank holding companies and therefore increase liquidity in stressed
financial markets. Similarly, the Board expects that the increase in leverage exposure capacity
will facilitate increases in customer deposits at banking organizations subject to the interim final
rule, and therefore ensure that these banking organizations remain able to fulfill this important
function.
Aside from increases in balance sheets caused by the recent volatility in Treasury
markets, the balance sheets of banking organizations also have increased as households and
businesses draw down credit lines and customer deposits increase. If holding companies become
constrained by supplementary leverage ratio requirements, this could adversely affect their
ability to intermediate financial markets and hamper their ability to provide lines of credit to
households and businesses. Therefore, the temporary increase in leverage exposure capacity
should have countercyclical benefits as it supports financial market liquidity and increases these
banking organizations’ lending capacities in a time of unprecedented economic distress.
8

The interim final rule would reduce the amount of tier 1 capital required to meet the
supplementary leverage ratio requirements by around $76 billion at holding companies.
9

85 FR 4569 (January 27, 2020).
Page 10 of 35

Although a temporary increase in leverage exposure capacity could lead to an increase in
overall leverage in the banking system, the exclusion of Treasuries and deposits at Federal
Reserve Banks will help alleviate ongoing stresses on the financial system and the real economy
arising from COVID-19. As Treasuries and deposits at Federal Reserve banks are free of credit
risk, their exclusion will also not incentivize risk-taking by banking organizations. The Board
will closely monitor the balance sheets of banking organizations subject to the interim final rule
in the coming months with a particular view toward any resulting increase in risks. In addition,
the tier 1 leverage ratio will continue to act as a backstop for all bank holding companies and
savings and loan holding companies subject to the capital rule.
IV. Administrative Law Matters
A. Administrative Procedure Act
The Board is issuing the interim final rule without prior notice and the opportunity for
public comment and the delayed effective date ordinarily prescribed by the Administrative
Procedure Act (APA). 10 Pursuant to section 553(b)(3)(B) of the APA, general notice and the
opportunity for public comment are not required with respect to a rulemaking when an “agency
for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the
rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary
to the public interest.”11
The Board believes that the public interest is best served by implementing the interim
final rule immediately upon publication in the Federal Register. As discussed above, the spread
of COVID-19 has slowed economic activity in many countries, including the United States.

10

5 U.S.C. 553.

11

5 U.S.C. 553(b)(3)(B).
Page 11 of 35

Specifically, the significant and sudden disruptions in financial markets have caused banking
organizations to receive inflows of deposits—contributing to the increase of deposits at Federal
Reserve Banks—and to acquire significant amounts of Treasuries. These deposits at Federal
Reserve Banks and Treasuries are essential to the normal functioning of the financial sector,
especially in times of stress. If holding companies cannot sustain the rapid increase in deposits
at Federal Reserve Banks and Treasuries, the financial sector would experience a marked decline
in financial intermediation and a further increase in general market volatility. Because the rule
will mitigate these potential negative effects, the Board finds that there is good cause consistent
with the public interest to issue the rule without advance notice and comment. 12
The APA also requires a 30-day delayed effective date, except for (1) substantive rules
which grant or recognize an exemption or relieve a restriction; (2) interpretative rules and
statements of policy; or (3) as otherwise provided by the agency for good cause. 13 Because the
rules relieve a restriction, the interim final rule is exempt from the APA’s delayed effective date
requirement.14
While the Board believes that there is good cause to issue the rule without advance notice
and comment and with an immediate effective date, the Board is interested in the views of the
public and requests comment on all aspects of the interim final rule.

12

5 U.S.C. 553(b)(3)(B); 553(d)(3).

13

5 U.S.C. 553(d).

14

5 U.S.C. 553(d)(1).

Page 12 of 35

B. Congressional Review Act
For purposes of Congressional Review Act, the OMB makes a determination as to
whether a final rule constitutes a “major” rule. 15 If a rule is deemed a “major rule” by the Office
of Management and Budget (OMB), the Congressional Review Act generally provides that the
rule may not take effect until at least 60 days following its publication. 16
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 foreign-based enterprises in domestic and export markets. 17
For the same reasons set forth above, the Board is adopting the interim final rule without
the delayed effective date generally prescribed under the Congressional Review Act. The
delayed effective date required by the Congressional Review Act does not apply to any rule for
which an agency for good cause finds (and incorporates the finding and a brief statement of
reasons therefor in the rule issued) that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest. 18 In light of current market uncertainty, the Board
believes that delaying the effective date of the rule would be contrary to the public interest.

15

5 U.S.C. 801 et seq.

16

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

17

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

18

5 U.S.C. 808.
Page 13 of 35

As required by the Congressional Review Act, the Board will submit the final rule and
other appropriate reports to Congress and the Government Accountability Office for review.
C. 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. The Board has reviewed this
interim final rule pursuant to authority delegated by the OMB.
The Board has temporarily revised certain reporting forms to accurately reflect various
aspects of this interim final rule. These reporting forms are the Financial Statements for Holding
Companies (FR Y-9C; OMB No. 7100-0128), the Capital Assessments and Stress Testing
reports (FR Y-14A/Q/M; OMB No. 7100-0341), and the Banking Organization Systemic Risk
Report (FR Y-15, OMB No. 7100-0352). The Board also has temporarily revised the
Recordkeeping and Disclosure Requirements Associated with Regulation Q (FR Q; OMB No.
7100-0313). On June 15, 1984, OMB delegated to the Board authority under the PRA to
temporarily approve a revision to a collection of information without providing opportunity for
public comment if the Board determines that a change in an existing collection must be instituted
quickly and that public participation in the approval process would defeat the purpose of the
collection or substantially interfere with the Board’s ability to perform its statutory obligation.
The Board’s delegated authority requires that the Board, after temporarily approving a
collection, solicit public comment to extend information collections for a period not to exceed
three years. Therefore, the Board is inviting comment to extend each of these information
collections for three years, with the revisions discussed below.

Page 14 of 35

The Board invites public comment on the following information collections, which are
being reviewed under authority delegated by the OMB under the PRA. Comments must be
submitted on or before [insert date 60 days after date of publication in the Federal Register].
Comments are invited on the following:
a. Whether the collections of information is necessary for the proper performance of the
Board’s functions, including whether the information has practical utility;
b. The accuracy of the Board’s estimate of the burden of the information collections,
including the validity of the methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the information to be collected;
d. Ways to minimize the burden of information collections on respondents, including
through the use of automated collection techniques or other forms of information
technology; and
e. Estimates of capital or startup costs and costs of operation, maintenance, and purchase of
services to provide information.
At the end of the comment period, the comments and recommendations received will be
analyzed to determine the extent to which the Board should modify the collection..
Final Approval under OMB Delegated Authority of the Temporary Revision of, and
Proposal to Extend for Three Years, With Revision, of the Following Information
Collections:
Report Title: Financial Statements for Holding Companies.
Agency form number: FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9ES, and FR Y-9CS.
OMB control number: 7100-0128.
Effective Date: June 30, 2020.

Page 15 of 35

Frequency: Quarterly, semiannually, and annually.
Respondents: Bank holding companies, savings and loan holding companies, securities holding
companies, and U.S. intermediate holding companies (collectively, HCs).
Estimated number of respondents: FR Y-9C (non-advanced approaches HCs with less than
$5 billion in total assets): 155; FR Y-9C (non-advanced approaches HCs with $5 billion or more
in total assets): 189; FR Y-9C (advanced approaches 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-advanced approaches HCs with less than $5 billion in total assets): 40.48 hours;
FR Y-9C (non-advanced approaches HCs with $5 billion or more in total assets): 46. 45 hours;
FR Y-9C (advanced approaches HCs): 48.59 hours; FR Y-9LP: 5.27 hours; FR Y-9SP: 5.40
hours; FR Y-9ES: 0.50 hours; FR Y-9CS: 0.50 hours.
Recordkeeping
FR Y-9C (non-advanced approaches HCs with less than $5 billion in total assets), FR Y-9C
(non-advanced approaches HCs with $5 billion or more in total assets), FR Y-9C (advanced
approaches HCs), and FR Y-9LP: 1.00 hour; FR Y-9SP, FR Y-9ES, and FR Y-9CS: 0.50 hours.
Estimated annual burden hours:
Reporting
FR Y-9C (non-advanced approaches HCs with less than $5 billion in total assets): 25,098 hours;
FR Y-9C (non-advanced approaches HCs with $5 billion or more in total assets): 35,116 hours;
FR Y-9C (advanced approaches HCs): 3,693 hours; FR Y-9LP: 9,149 hours; FR Y-9SP: 42,768
hours; FR Y-9ES: 42 hours; FR Y-9CS: 472 hours.

Page 16 of 35

Recordkeeping
FR Y-9C (non-advanced approaches HCs with less than $5 billion in total assets): 620 hours; FR
Y-9C (non-advanced approaches HCs with $5 billion or more in total assets): 756 hours; FR Y9C (advanced approaches HCs): 76 hours; FR Y-9LP: 1,736 hours; FR Y-9SP: 3,960 hours; FR
Y-9ES: 42 hours; FR Y-9CS: 472 hours.
General description of report:
The FR Y-9C consists of standardized financial statements similar to the Call Reports
filed by commercial banks. 19 The FR Y-9C collects consolidated data from HCs and is filed
quarterly by top-tier 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.

19

The Call Reports consist of the Consolidated Reports of Condition and Income for a Bank
with Domestic Offices Only and Total Assets Less Than $5 Billion (FFIEC 051), the
Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only (FFIEC
041) and the Consolidated Reports of Condition and Income for a Bank with Domestic and
Foreign Offices (FFIEC 031).
20

Under 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.
21

A top-tier HC may submit a separate FR Y-9LP on behalf of each of its lower-tier HCs.
Page 17 of 35

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 voluntary 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 Y-9 family of reports on bank holding
companies (“BHCs”) pursuant to section 5 of the Bank Holding Company Act (“BHC Act”)
(12 U.S.C. 1844); on savings and loan holding companies pursuant to section 10(b)(2) and (3) of
the Home Owners’ Loan Act (12 U.S.C. 1467a(b)(2) and (3)); on U.S. intermediate holding
companies (“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 Wall Street Reform and Consumer
Protection Act (“Dodd-Frank Act”) (12 U.S.C. 511(a)(1) and 5365); and on securities holding
companies pursuant to section 618 of the Dodd-Frank Act (12 U.S.C. 1850a(c)(1)(A)). 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, Schedule HI’s memoranda item 7(g), Schedule HC-P’s
item 7(a), and Schedule HC-P’s item 7(b) are considered confidential commercial and financial

Page 18 of 35

information under exemption 4 of the Freedom of Information Act (“FOIA”) (5 U.S.C.
552(b)(4)), as is Schedule HC’s memorandum item 2.b. for both the FR Y-9C and FR Y-9SP
reports.
Aside from the data items described above, the remaining data items on the FR Y-9
reports are 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 that the instructions to the FR Y-9C, FR Y-9LP, FR Y-9SP, and FR Y-9ES
reports each respectively direct a financial institution to retain the workpapers 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 may be considered confidential pursuant to exemption 8 of the FOIA (5 U.S.C.
552(b)(8)). In addition, the financial institution’s workpapers 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)).
Current Actions: The Board has temporarily revised the instructions to FR Y-9C report to
accurately reflect the calculation of the supplementary leverage ratio pursuant to this interim
final rule. Specifically, the Board has revised the instructions for FR Y-9C, Schedule HC-R, Line
Item 45 (Advanced approaches holding companies only: Supplementary leverage ratio) to state

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that respondents must report the supplementary leverage ratio in a manner consistent with this
interim final rule.
The Board has determined that the revisions to the FR Y-9 reports described above must
be instituted quickly and that public participation in the approval process would defeat the
purpose of the collection of information, as delaying the revisions would result in the collection
of inaccurate information, and would interfere with the Board’s ability to perform its statutory
duties.
The Board also invites comment to extend the FR Y-9 reports for three years, with the
revisions described above. These revisions would be effective for FR Y-9 reports as of dates up
to and including March 31, 2021, the date after which the exclusions in this interim final rule
will no longer be effective.
(2) Report title: Capital Assessments and Stress Testing Reports.
Agency form number: FR Y-14A/Q/M.
OMB control number: 7100-0341.
Effective date: December 31, 2019.
Frequency: Annually, quarterly, and monthly.
Respondents: These collections of information are applicable to BHCs, U.S. IHCs, and savings
and loan holding companies (SLHCs) 22 (collectively, “holding companies”) with $100 billion or
more in total consolidated assets, as based on: (i) the average of the firm’s total consolidated
assets in the four most recent quarters as reported quarterly on the firm’s Consolidated Financial
Statements for Holding Companies (FR Y-9C); or (ii) if the firm has not filed an FR Y-9C for

22

SLHCs with $100 billion or more in total consolidated assets become members of the
FR Y-14Q and FR Y-14M panels effective June 30, 2020, and the FR Y-14A panel effective
December 31, 2020. See 84 FR 59032 (November 1, 2019).
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each of the most recent four quarters, then the average of the firm’s total consolidated assets in
the most recent consecutive quarters as reported quarterly on the firm’s FR Y-9Cs. Reporting is
required as of the first day of the quarter immediately following the quarter in which the
respondent meets this asset threshold, unless otherwise directed by the Board.
Estimated number of respondents: FR Y-14A/Q: 36; FR Y-14M: 34.23
Estimated average hours per response: FR Y-14A: 1,085 hours; FR Y-14Q: 1,920 hours;
FR Y-14M: 1,072 hours; FR Y-14 On-going Automation Revisions: 480 hours; FR Y-14
Attestation On-going Attestation: 2,560 hours.
Estimated annual burden hours: FR Y-14A: 39,060 hours; FR Y-14Q: 276,480 hours; FR Y14M: 437,376 hours; FR Y-14 On-going Automation Revisions: 17,280 hours; FR Y-14
Attestation On-going Attestation: 33,280 hours.
General description of report: This family of information collections is composed of the
following three reports:
The annual 24 FR Y-14A collects quantitative projections of balance sheet, income, losses,
and capital across a range of macroeconomic scenarios and qualitative information on
methodologies used to develop internal projections of capital across scenarios. 25

23

The estimated number of respondents for the FR Y-14M is lower than for the FR Y-14Q and
FR Y-14A because, in recent years, certain respondents to the FR Y-14A and FR Y-14Q have
not met the materiality thresholds to report the FR Y-14M due to their lack of mortgage and
credit activities. The Board expects this situation to continue for the foreseeable future.
24
In certain circumstances, a BHC or IHC may be required to re-submit its capital plan.
See 12 CFR 225.8(e)(4). Firms that must re-submit their capital plan generally also must
provide a revised FR Y-14A in connection with their resubmission.
25

On October 10, 2019, the Board issued a final rule that eliminated the requirement for firms
subject to Category IV standards to conduct and publicly disclose the results of a company-run
stress test. See 84 FR 59032 (Nov. 1, 2019). That final rule maintained the existing FR Y-14
substantive reporting requirements for these firms in order to provide the Board with the data it
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The quarterly FR Y-14Q collects granular data on various asset classes, including loans,
securities, trading assets, and PPNR for the reporting period.
The monthly FR Y-14M is comprised of three retail portfolio- and loan-level schedules,
and one detailed address-matching schedule to supplement two of the portfolio and loan-level
schedules.
The data collected through the FR Y-14A/Q/M reports provide the Board with the
information needed to help ensure that large firms have strong, firm‐wide risk measurement and
management processes supporting their internal assessments of capital adequacy and that their
capital resources are sufficient given their business focus, activities, and resulting risk exposures.
The reports are used to support the Board’s annual Comprehensive Capital Analysis and Review
(CCAR) and Dodd-Frank Act Stress Test (DFAST) exercises, which complement other Board
supervisory efforts aimed at enhancing the continued viability of large firms, including
continuous monitoring of firms’ planning and management of liquidity and funding resources, as
well as regular assessments of credit, market and operational risks, and associated risk
management practices. Information gathered in this data collection is also used in the
supervision and regulation of respondent financial institutions. Compliance with the information
collection is mandatory.
Current actions: The Board has temporarily revised the instructions to FR Y-14A report to give
each banking organization that is required to submit the FR Y-14A on April 6, 2020, and April 5,
2021, the option to calculate the supplementary leverage ratio in its stress test results in

needs to conduct supervisory stress testing and inform the Board’s ongoing monitoring and
supervision of its supervised firms. However, as noted in the final rule, the Board intends to
provide greater flexibility to banking organizations subject to Category IV standards in
developing their annual capital plans and consider further change to the FR Y-14 forms as part of
a separate proposal. See 84 FR 59032, 59063.
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accordance with this interim final rule. Please note that this revision does not require actual
changes to the current FR Y-14A form and instructions.
The Board has determined that the revision to the FR Y-14A/Q/M reports described
above must be instituted quickly and that public participation in the approval process would
defeat the purpose of the collection of information, as delaying the revision would result in the
collection of inaccurate information, and would interfere with the Board’s ability to perform its
statutory duties.
The Board also invites comment to extend the FR Y-14A/Q/M for three years, with the
revision described above. This revision would be effective for FR Y-14A reports as of
December 31, 2019, and as of December 31, 2020, after which the exclusions in this interim final
rule will no longer be effective.
Legal authorization and confidentiality: The Board has the authority to require BHCs to file the
FR Y-14 reports pursuant to section 5(c) of the BHC Act, 12 U.S.C. 1844(c), and pursuant to
section 165(i) of the Dodd-Frank Act, 12 U.S.C. 5365(i). The Board has authority to require
SLHCs to file the FR Y-14 reports pursuant to section 10(b) of the Home Owners’ Loan Act
(12 U.S.C. 1467a(b)). Lastly, the Board has authority to require U.S. IHCs of FBOs to file the
FR Y-14 reports pursuant to section 5 of the BHC Act, as well as pursuant to sections 102(a)(1)
and 165 of the Dodd-Frank Act, 12 U.S.C. 5311(a)(1) and 5365. In addition, section 401(g) of
EGRRCPA, 12 U.S.C. 5365 note, provides that the Board has the authority to establish enhanced
prudential standards for foreign banking organizations with total consolidated assets of $100
billion or more, and clarifies that nothing in section 401 “shall be construed to affect the legal
effect of the final rule of the Board... entitled ‘Enhanced Prudential Standard for [BHCs] and
Foreign Banking Organizations’ (79 Fed. Reg. 17240 (March 27, 2014)), as applied to foreign

Page 23 of 35

banking organizations with total consolidated assets equal to or greater than $100 million.” 26
The FR Y-14 reports are mandatory. The information collected in the FR Y-14 reports is
collected as part of the Board’s supervisory process, and therefore, such information is afforded
confidential treatment pursuant to exemption 8 of the Freedom of Information Act (FOIA), 5
U.S.C. 552(b)(8). In addition, confidential commercial or financial information, which a
submitter actually and customarily treats as private, and which has been provided pursuant to an
express assurance of confidentiality by the Board, is considered exempt from disclosure under
exemption 4 of the FOIA, 5 U.S.C. 552(b)(4).
(3) Report title: Banking Organization Systemic Risk Report.
Agency form number: FR Y-15.
OMB control number: 7100-0352.
Effective Date: June 30, 2020.
Frequency: Quarterly.
Respondents: The FR Y-15 panel is currently comprised of top-tier bank holding companies
(BHCs), covered savings and loan holding companies (SLHCs), and intermediate holding
companies (IHCs) with $50 billion or more in total consolidated assets, and any BHC designated
as a global systemically important bank holding company (GSIB) 27 based on its method 1 score
calculated as of December 31 of the previous calendar year that does not otherwise meet the
consolidated assets threshold for BHCs. 28 Pursuant to separate revisions to the FR Y-15 recently
26

The Board’s Final Rule referenced in section 401(g) of EGRRCPA specifically stated that the
Board would require IHCs to file the FR Y-14 reports. See 79 Fed. Reg. 17240, 17304
(March 27, 2014).
27

See 12 CFR 217.402.

28

According to the Board’s statement issued in July 2018, the Board will take no action to
require BHCs and covered SLHCs with less than $100 billion in total consolidated assets to file
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made by the Board, the reporting panel for the FR Y-15 will, effective June 30, 2020, consist of
U.S. BHCs and SLHCs with $100 billion or more in consolidated assets, foreign banking
organizations with $100 billion or more in combined U.S. assets, and any BHC designated as a
GSIB. 29
Estimated number of respondents: 43.
Estimated average hours per response:
Reporting – 404, Recordkeeping – 1.
Estimated annual burden hours:
Reporting – 69,488, Recordkeeping – 172.
General description of report: Section 165 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act) 30 directs the Board to establish enhanced prudential standards,
including risk-based capital requirements, for certain large financial institutions. These
standards must be more stringent than the standards applicable to other financial institutions that
do not present similar risks to U.S. financial stability. Additionally, these standards must
increase in stringency based on several factors, including the size and risk characteristics of a
company subject to the rule, and the Board must take into account the differences among bank
holding companies and nonbank financial companies.

the FR Y-15, pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection
Act (EGRRCPA). See
https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20180706b1.pdf.
29

See Prudential Standards for Large Bank Holding Companies, Savings and Loan Holding
Companies, and Foreign Banking Organizations, 84 FR 59032 (Nov. 1, 2019).
30

Pub. L. No. 111–203 (2010); 12 U.S.C. 5365.

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Pursuant to the requirement to establish enhanced risk-based capital standards under
section 165 of the Dodd-Frank Act, the Board published a final rule establishing a GSIB
surcharge on the largest, most interconnected U.S. BHCs in August 2015. 31 The GSIB surcharge
is calculated using an indicator-based approach that focuses on those aspects of a BHC’s
operations that are likely to generate negative externalities in the case of its failure or distress.
The rule’s methodologies assess six components of a BHC’s systemic footprint: size,
interconnectedness, substitutability, complexity, cross-jurisdictional activity, and reliance on
short-term wholesale funding. The indicators comprising these six components are reported on
the FR Y-15. More generally, the FR Y-15 report is used to monitor the systemic risk profile of
the institutions that are subject to enhanced prudential standards under section 165.
Additionally, section 604 of the Dodd-Frank Act requires that the Board consider the
extent to which a proposal would result in greater or more concentrated risks to the stability of
the United States banking or financial system as part of its review of certain banking
applications. 32 The data reported on the FR Y-15 are used by the Board to analyze the systemic
risk implications of such applications.
The FR Y-15 consists of the following schedules:
•

Schedule A – Size Indicator

•

Schedule B – Interconnectedness Indicators

•

Schedule C – Substitutability Indicators

•

Schedule D – Complexity Indicators

•

Schedule E – Cross-Jurisdictional Activity Indicators

31

80 FR 49082 (August 14, 2015).

32

Pub. L. No. 111–203, 604(d), (f); 12 U.S.C. 1842(c)(7), 1843(j)(2)(A), and 1828(c)(5).
Page 26 of 35

•

Schedule F – Ancillary Indicators

•

Schedule G – Short-term Wholesale Funding Indicator

Some of the reporting requirements within the schedules overlap with data already collected in
the Consolidated Financial Statements for Holding Companies (FR Y-9C; OMB No. 71000128), the Country Exposure Report (FFIEC 009; OMB No. 7100-0035), and the Regulatory
Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework (FFIEC
101; OMB No. 7100-0319). Where relevant data are already collected by those reports, the FR
Y-15 automatically populates items based on the source form so that the information does not
need to be reported twice. Automatically retrieved items are listed in the general instructions of
the FR Y-15, under section H, titled “Data Items Automatically Retrieved from Other Reports.”
Legal authorization and confidentiality: The Board has the authority to require BHCs, SLHCs,
FBOs and IHCs, to file the FR Y-15 pursuant to, respectively, section 5 of the BHC Act
(12 U.S.C. 1844), section 10(b) of the Home Owners’ Loan Act (12 U.S.C. 1467a(b)), and
section 5 of the BHC Act, in conjunction with section 8 of the International Banking Act (12
U.S.C. 3106). The FR Y-15 reports are mandatory. The data collected on the FR Y-15 are made
public unless a specific request for confidentiality is submitted by the reporting entity, either on
the FR Y-15 or on the form from which the data item is obtained. Such information will be
accorded confidential treatment under exemption 4 of the Freedom of Information Act (FOIA) if
the submitter substantiates its assertion that disclosure would likely cause substantial competitive
harm. A number of the items in the FR Y-15 are retrieved from the FR Y-9C, FFIEC 101, and
FFIEC 009. Confidential treatment also will extend to any automatically calculated items on the
FR Y-15 that have been derived from confidential data items and that, if released, would reveal
the underlying confidential data. To the extent confidential data collected under the FR Y-15

Page 27 of 35

will be used for supervisory purposes, it may be exempt from disclosure under Exemption 8 of
FOIA (5 U.S.C. 552(b)(8)).
Current actions: The Board has temporarily revised the instructions to the FR Y-15 to ensure
that the FR Y-15 is not impacted by the revised calculation of the supplementary leverage ratio
pursuant to this interim final rule. Specifically, the Board has deleted from the FR Y-15
instructions a statement indicating that Schedule A, item 3(a), “Other on-balance sheet assets”
will be automatically populated for banking organizations that file the Regulatory Capital
Reporting for Institutions Subject to the Advanced Capital Adequacy Framework (FFIEC 101;
OMB No. 7100-0319) for the same reporting period from FFIEC 101, Schedule A, item 2.1.
Instead, all FR Y-15 respondents will be required to report Schedule A, item 3(a) according to
the instructions for that item. The purpose of this temporary revision is to ensure that the
systemic risk indicators reported on the FR Y-15 are not affected by the changes to the capital
rule included in this interim final rule, regardless of whether conforming revisions are
subsequently made to the FFIEC 101 report. This revision ensures that the size indicator
continues to capture all on-balance sheet assets, consistent with the intent of the indicator.
The Board has determined that the revisions to the FR Y-15 described above must be
instituted quickly and that public participation in the approval process would defeat the purpose
of the collection of information, as delaying the revisions would result in the collection of
inaccurate information, and would interfere with the Board’s ability to perform its statutory
duties.
The Board also invites comment to extend the FR Y-15 for three years, with the revisions
described above.

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(3) Title of Information Collection: Recordkeeping and Disclosure Requirements Associated with
Regulation Q.
Agency form number: FR Q.
OMB control number: 7100-0313.
Frequency: Quarterly, annual.
Affected Public: Businesses or other for-profit.
Respondents: State member banks (SMBs), bank holding companies (BHCs), U.S. intermediate
holding companies (IHCs), savings and loan holding companies (SLHCs), and global
systemically important bank holding companies (GSIBs).
Legal authorization and confidentiality: This information collection is authorized by section
38(o) of the Federal Deposit Insurance Act (12 U.S.C. 1831o(c)), section 908 of the International
Lending Supervision Act of 1983 (12 U.S.C. 3907(a)(1)), section 9(6) of the Federal Reserve Act
(12 U.S.C. 324), and section 5(c) of the Bank Holding Company Act (12 U.S.C. 1844(c)). The
obligation to respond to this information collection is mandatory. If a respondent considers the
information to be trade secrets and/or privileged such information could be withheld from the
public under the authority of the Freedom of Information Act (5 U.S.C. 552(b)(4)).
Additionally, to the extent that such information may be contained in an examination report such
information could also be withheld from the public (5 U.S.C. 552 (b)(8)). Estimated number of
respondents: 1,431 (of which 19 are advanced approaches institutions).
Estimated average hours per response:
Minimum Capital Ratios
Recordkeeping (Ongoing)—16.
Standardized Approach

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Recordkeeping (Initial setup)—122.
Recordkeeping (Ongoing)—20.
Disclosure (Initial setup)—226.25.
Disclosure (Ongoing quarterly)—131.25.
Advanced Approach
Recordkeeping (Initial setup)—460.
Recordkeeping (Ongoing)—540.77.
Recordkeeping (Ongoing quarterly)—20.
Disclosure (Initial setup)—328.
Disclosure (Ongoing)—5.78.
Disclosure (Ongoing quarterly)—41.
Disclosure (Table 13 quarterly)—5.
Risk-based Capital Surcharge for GSIBs
Recordkeeping (Ongoing)—0.5.
Total estimated annual burden: 1,136 hours initial setup, 80,173 hours for ongoing.
Current actions: The Board has temporarily revised the FR Q information collection to reflect a
revision to the disclosure requirements contained in the Board’s Regulation Q. Generally,
section 217.173 of the Board’s Regulation Q requires each advanced approaches Board-regulated
institution and a Category III Board-regulated institution that is required to publicly disclose its
supplementary leverage ratio pursuant to section 217.172(d) of Regulation Q to make certain
disclosures, which are listed in Table 13 of section 217.173. Pursuant to this interim final rule, a
Board-regulated institution that is required to make such disclosures will be required exclude the

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balance sheet carrying value of U.S. Treasury securities funds on deposit at a Federal Reserve
Bank from its disclosures under Table 13 of section 217.173.
The Board has determined that the revision to the FR Q described above must be
instituted quickly and that public participation in the approval process would defeat the purpose
of the collection of information, as delaying the revisions would result in the collection of
inaccurate information, and would interfere with the Board’s ability to perform its statutory
duties.
The Board also invites comment to extend the FR Y-Q for three years, with the revision
described above. This revision would be effective for FR Q as of dates up to and including
March 31, 2021, the date after which the exclusions in this interim final rule will no longer be
effective.
D. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) 33 requires an agency to consider whether the rules
it proposes will have a significant economic impact on a substantial number of small entities. 34
The RFA applies only to rules for which an agency publishes a general notice of proposed
rulemaking pursuant to 5 U.S.C. 553(b). As discussed previously, consistent with
section 553(b)(3)(B) of the APA, the Board has determined for good cause that general notice
and opportunity for public comment is unnecessary, and therefore the Board is not issuing a
notice of proposed rulemaking. Accordingly, the Board has concluded that the RFA’s
requirements relating to initial and final regulatory flexibility analysis do not apply.
33

5 U.S.C. 601 et seq.

34

Under regulations issued by the Small Business Administration, a small entity includes a
depository institution, bank holding company, or savings and loan holding company with total
assets of $600 million or less and trust companies with total assets of $41.5 million or less. See
13 CFR 121.201.
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Nevertheless, the Board seeks comment on whether, and the extent to which, the interim
final rule would affect a significant number of small entities.
E. Riegle Community Development and Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the Riegle Community Development and Regulatory
Improvement Act (RCDRIA), 35 in determining the effective date and administrative compliance
requirements for new regulations that impose additional reporting, disclosure, or other
requirements on IDIs, each Federal banking agency must consider, consistent with the principle
of safety and soundness and the public interest, any administrative burdens that such regulations
would place on depository institutions, including small depository institutions, and customers of
depository institutions, as well as the benefits of such 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, with certain exceptions, including for good cause. 36 For the reasons described above,
the Board finds good cause exists under section 302 of RCDRIA to publish this interim final rule
with an immediate effective date.
As such, the final rule will be effective on immediately. Nevertheless, the Board seeks
comment on RCDRIA.

35

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

36

12 U.S.C. 4802.

Page 32 of 35

F. Use of Plain Language
Section 722 of the Gramm-Leach-Bliley Act 37 requires the Federal banking agencies to
use plain language in all proposed and final rules published after January 1, 2000. The Board
has sought to present the interim final rule in a simple and straightforward manner. The Board
invites comments on whether there are additional steps it could take to make the rule easier to
understand. For example:
•

Have we organized the material to suit your needs? If not, how could this material
be better organized?

•

Are the requirements in the regulation clearly stated? If not, how could the
regulation be more clearly stated?

•

Does the regulation contain language or jargon that is not clear? If so, which
language requires clarification?

•

Would a different format (grouping and order of sections, use of headings,
paragraphing) make the regulation easier to understand? If so, what changes to the
format would make the regulation easier to understand? What else could we do to
make the regulation easier to understand?

List of Subjects
12 CFR Part 217
Administrative practice and procedure, Banks, Banking, Federal Reserve System,
Holding companies, Reporting and recordkeeping requirements, Securities.
Authority and Issuance
For the reasons stated in the preamble, the Board of Governors of the Federal Reserve
System amends 12 CFR chapter II as follows:

37

12 U.S.C. 4809.
Page 33 of 35

PART 217—CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS
AND LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS
(REGULATION Q)
1. The authority citation for part 217 continues to read as follows:
Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 1818, 1828, 1831n,
1831o, 1831p-1, 1831w, 1835, 1844(b), 1851, 3904, 3906-3909, 4808, 5365, 5368, 5371 and
5371 note.
Subpart G – Transition Provisions
2. Add § 217.303 to read as follows:
§217.303 Temporary Exclusions from Total Leverage Exposure.
(a) In general. Subject to the limitations in paragraphs (b) and (c) of this section and
notwithstanding any other requirement in this part, a Board-regulated institution that is a
depository institution holding company or a U.S. intermediate holding company, when
calculating on-balance sheet assets as of each day of a reporting quarter for purposes of
determining the Board-regulated institution’s total leverage exposure under §217.10(c)(4), must
exclude the balance sheet carrying value of the following items:
(1) U.S. Treasury securities; and
(2) Funds on deposit at a Federal Reserve Bank.
(b) Termination of exclusions. The exclusions required pursuant to paragraph (a) of this
section terminate after the calendar quarter ending on March 31, 2021.
(c) Custodial banking organizations. A custodial banking organization that is a
depository institution holding company or a U.S. intermediate holding company must reduce the

Page 34 of 35

amount in §217.10(c)(4)(ii)(J)(1) (to no less than zero) by any amount excluded under
paragraph (a)(2) of this section.
(d) Disclosure. Notwithstanding Table 13 to §217.173, a Board-regulated institution that
is a depository institution holding company or a U.S intermediate holding company that is
required to make the disclosures pursuant to §217.173 must exclude the items excluded pursuant
to paragraph (a) of this section from Table 13 to §217.173.

By order of the Board of Governors of the Federal Reserve System.

Ann Misback,
Secretary of the Board.

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