57992 Federal Register / Vol. 76, No. 181 / Monday, September 19, 2011 / Notices
1 Assessment Rate Adjustment Guidelines for
Large Institutions and Insured Foreign Branches in
Risk Category I, 72 FR 27122 (May 14, 2007).
2 Assessments, Large Bank Pricing, 76 FR 10672
(Feb. 25, 2011) (codified at 12 CFR 327.9–10).
3 A large institution is defined as an insured
depository institution: (1) That had assets of $10
billion or more as of December 31, 2006 (unless, by
reporting assets of less than $10 billion for four
consecutive quarters since then, it has become a
small institution); or (2) that had assets of less than
$10 billion as of December 31, 2006, but has since
had $10 billion or more in total assets for at least
four consecutive quarters, whether or not the
institution is new. A ‘‘highly complex institution’’
is defined as: (1) An insured depository institution
(excluding a credit card bank) that has had $50
billion or more in total assets for at least four
consecutive quarters and that either is controlled by
a U.S. parent holding company that has had $500
billion or more in total assets for four consecutive
quarters, or is controlled by one or more
intermediate U.S. parent holding companies that
are controlled by a U.S. holding company that has
had $500 billion or more in assets for four
consecutive quarters, and (2) a processing bank or
trust company. A processing bank or trust company
is an insured depository institution whose last three
years’ non-lending interest income, fiduciary
revenues, and investment banking fees, combined,
exceed 50 percent of total revenues (and its last
three years fiduciary revenues are non-zero), whose
total fiduciary assets total $500 billion or more and
whose total assets for at least four consecutive
quarters have been $10 billion or more.
4 In the context of large institution insurance
pricing, the performance score measures a large
institution’s financial performance and its ability to
withstand stress. The loss severity score refers to
the relative loss that an institution poses to the
Deposit Insurance Fund in the event of a failure.
The information in the Emergency
Contacts database and COOP Contacts
database is only available for review and
updating by the employees and
contractors (whose information is
maintained in the databases), Bureau/
Office administrative personnel, and
FCC management on a need-to- know
basis. Authorized PSHSB supervisors
and staff also have access to the paper
documents, files, and records that are
stored in the filing cabinets located in
the PSHSB office suite and to the
electronic records, files, and data that
are housed in the FCC’s computer
network databases and in those of a
third-party vendor. The supervisors,
staff, and contractors in the FCC’s
Information Technology Center’s (ITC),
who manage the FCC’s computer
network databases have access to the
electronic information. Other employees
and contractors are only granted access
to the information in the filing cabinets
and electronic databases on a ‘‘need-to-
know’’ basis.
RETENTION AND DISPOSAL:
1. Emergency Contacts: The paper
files and electronic data in this system
are retained and disposed of in
accordance with the National Archives
and Records Administration (NARA)
General Records Schedule 1, which may
be viewed at http://www.archives.gov/
records-mgmt/ardor/grs01.html.
2. COOP Contacts: The retention
schedule for this system’s electronic
records has not yet been determined. No
records will be destroyed until a
disposal schedule has been approved by
the National Archives and Records
Administration (NARA).
SYSTEM MANAGER(S) AND ADDRESS:
Address inquiries to Public Safety and
Homeland Security Bureau (PSHSB),
Federal Communications Commission
(FCC), 445 12th Street, SW.,
Washington, DC 20554.
NOTIFICATION PROCEDURE:
Address inquiries to Public Safety and
Homeland Security Bureau (PSHSB),
Federal Communications Commission
(FCC), 445 12th Street, SW.,
Washington, DC 20554.
RECORD ACCESS PROCEDURES:
Address inquiries to Public Safety and
Homeland Security Bureau (PSHSB),
Federal Communications Commission
(FCC), 445 12th Street, SW.,
Washington, DC 20554.
CONTESTING RECORD PROCEDURES:
Address inquiries to Public Safety and
Homeland Security Bureau (PSHSB),
Federal Communications Commission
(FCC), 445 12th Street, SW.,
Washington, DC 20554.
RECORD SOURCE CATEGORIES:
1. Emergency Contacts: The sources
for the information in this system
include FCC employees, Federal
Government contacts, State, Tribal,
Territorial, Local Government and
private sector contacts along with
institutions, organizations, and
individuals with crisis management and
emergency preparedness functions, etc.;
and
2. COOP Contacts: The sources for
information in this system include FCC
employees and contractors.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
None.
Federal Communications Commission.
Marlene H. Dortch,
Secretary, Office of the Secretary, Office of
Managing Director.
[FR Doc. 2011–23929 Filed 9–16–11; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Assessment Rate Adjustment
Guidelines for Large and Highly
Complex Institutions
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final guidelines.
SUMMARY: The FDIC is adopting
guidelines that it will use to determine
how adjustments may be made to an
institution’s total score when
calculating the deposit insurance
assessment rates of large and highly
complex insured institutions. Total
scores are determined according to the
Final Rule on Assessments and Large
Bank Pricing that was approved by the
FDIC Board on February 7, 2011 (76 FR
10672 (Feb. 25, 2011)).
FOR FURTHER INFORMATION CONTACT:
Patrick Mitchell, Acting Chief, Large
Bank Pricing Section, Division of
Insurance and Research, (202) 898–
3943; and Christopher Bellotto, Counsel,
Legal Division, (202) 898–3801, 550
17th Street, NW., Washington, DC
20429.
SUPPLEMENTARY INFORMATION:
I. Dates
These guidelines supersede the
assessment rate adjustment guidelines
published by the FDIC on May 15, 2007
(the 2007 Guidelines).1
II. Background
On February 7, 2011, the FDIC Board
amended its assessment regulations by,
among other things, adopting a new
methodology for determining
assessment rates for large and highly
complex institutions (the Amended
Assessment Regulations).2 The
Amended Assessment Regulations
eliminated risk categories and combined
CAMELS ratings and forward-looking
financial measures into one of two
scorecards, one for highly-complex
institutions and another for all other
large institutions.3 Each of the two
scorecards produces two scores—a
performance score and a loss severity
score—that are combined into a total
score.4
Tables 1 and 2 show the scorecards
for large and highly complex
institutions, respectively.
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1 Assessment Rate Adjustment Guidelines for
Large Institutions and Insured Foreign Branches in
Risk Category I, 72 FR 27122 (May 14, 2007).
2 Assessments, Large Bank Pricing, 76 FR 10672
(Feb. 25, 2011) (codified at 12 CFR 327.9–10).
3 A large institution is defined as an insured
depository institution: (1) That had assets of $10
billion or more as of December 31, 2006 (unless, by
reporting assets of less than $10 billion for four
consecutive quarters since then, it has become a
small institution); or (2) that had assets of less than
$10 billion as of December 31, 2006, but has since
had $10 billion or more in total assets for at least
four consecutive quarters, whether or not the
institution is new. A ‘‘highly complex institution’’
is defined as: (1) An insured depository institution
(excluding a credit card bank) that has had $50
billion or more in total assets for at least four
consecutive quarters and that either is controlled by
a U.S. parent holding company that has had $500
billion or more in total assets for four consecutive
quarters, or is controlled by one or more
intermediate U.S. parent holding companies that
are controlled by a U.S. holding company that has
had $500 billion or more in assets for four
consecutive quarters, and (2) a processing bank or
trust company. A processing bank or trust company
is an insured depository institution whose last three
years’ non-lending interest income, fiduciary
revenues, and investment banking fees, combined,
exceed 50 percent of total revenues (and its last
three years fiduciary revenues are non-zero), whose
total fiduciary assets total $500 billion or more and
whose total assets for at least four consecutive
quarters have been $10 billion or more.
4 In the context of large institution insurance
pricing, the performance score measures a large
institution’s financial performance and its ability to
withstand stress. The loss severity score refers to
the relative loss that an institution poses to the
Deposit Insurance Fund in the event of a failure.
The information in the Emergency
Contacts database and COOP Contacts
database is only available for review and
updating by the employees and
contractors (whose information is
maintained in the databases), Bureau/
Office administrative personnel, and
FCC management on a need-to- know
basis. Authorized PSHSB supervisors
and staff also have access to the paper
documents, files, and records that are
stored in the filing cabinets located in
the PSHSB office suite and to the
electronic records, files, and data that
are housed in the FCC’s computer
network databases and in those of a
third-party vendor. The supervisors,
staff, and contractors in the FCC’s
Information Technology Center’s (ITC),
who manage the FCC’s computer
network databases have access to the
electronic information. Other employees
and contractors are only granted access
to the information in the filing cabinets
and electronic databases on a ‘‘need-to-
know’’ basis.
RETENTION AND DISPOSAL:
1. Emergency Contacts: The paper
files and electronic data in this system
are retained and disposed of in
accordance with the National Archives
and Records Administration (NARA)
General Records Schedule 1, which may
be viewed at http://www.archives.gov/
records-mgmt/ardor/grs01.html.
2. COOP Contacts: The retention
schedule for this system’s electronic
records has not yet been determined. No
records will be destroyed until a
disposal schedule has been approved by
the National Archives and Records
Administration (NARA).
SYSTEM MANAGER(S) AND ADDRESS:
Address inquiries to Public Safety and
Homeland Security Bureau (PSHSB),
Federal Communications Commission
(FCC), 445 12th Street, SW.,
Washington, DC 20554.
NOTIFICATION PROCEDURE:
Address inquiries to Public Safety and
Homeland Security Bureau (PSHSB),
Federal Communications Commission
(FCC), 445 12th Street, SW.,
Washington, DC 20554.
RECORD ACCESS PROCEDURES:
Address inquiries to Public Safety and
Homeland Security Bureau (PSHSB),
Federal Communications Commission
(FCC), 445 12th Street, SW.,
Washington, DC 20554.
CONTESTING RECORD PROCEDURES:
Address inquiries to Public Safety and
Homeland Security Bureau (PSHSB),
Federal Communications Commission
(FCC), 445 12th Street, SW.,
Washington, DC 20554.
RECORD SOURCE CATEGORIES:
1. Emergency Contacts: The sources
for the information in this system
include FCC employees, Federal
Government contacts, State, Tribal,
Territorial, Local Government and
private sector contacts along with
institutions, organizations, and
individuals with crisis management and
emergency preparedness functions, etc.;
and
2. COOP Contacts: The sources for
information in this system include FCC
employees and contractors.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
None.
Federal Communications Commission.
Marlene H. Dortch,
Secretary, Office of the Secretary, Office of
Managing Director.
[FR Doc. 2011–23929 Filed 9–16–11; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Assessment Rate Adjustment
Guidelines for Large and Highly
Complex Institutions
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final guidelines.
SUMMARY: The FDIC is adopting
guidelines that it will use to determine
how adjustments may be made to an
institution’s total score when
calculating the deposit insurance
assessment rates of large and highly
complex insured institutions. Total
scores are determined according to the
Final Rule on Assessments and Large
Bank Pricing that was approved by the
FDIC Board on February 7, 2011 (76 FR
10672 (Feb. 25, 2011)).
FOR FURTHER INFORMATION CONTACT:
Patrick Mitchell, Acting Chief, Large
Bank Pricing Section, Division of
Insurance and Research, (202) 898–
3943; and Christopher Bellotto, Counsel,
Legal Division, (202) 898–3801, 550
17th Street, NW., Washington, DC
20429.
SUPPLEMENTARY INFORMATION:
I. Dates
These guidelines supersede the
assessment rate adjustment guidelines
published by the FDIC on May 15, 2007
(the 2007 Guidelines).1
II. Background
On February 7, 2011, the FDIC Board
amended its assessment regulations by,
among other things, adopting a new
methodology for determining
assessment rates for large and highly
complex institutions (the Amended
Assessment Regulations).2 The
Amended Assessment Regulations
eliminated risk categories and combined
CAMELS ratings and forward-looking
financial measures into one of two
scorecards, one for highly-complex
institutions and another for all other
large institutions.3 Each of the two
scorecards produces two scores—a
performance score and a loss severity
score—that are combined into a total
score.4
Tables 1 and 2 show the scorecards
for large and highly complex
institutions, respectively.
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57993Federal Register / Vol. 76, No. 181 / Monday, September 19, 2011 / Notices
5 Adjustments to the initial base assessment rate
may include an unsecured debt adjustment,
depository institution debt adjustment, and a
brokered deposit adjustment. 6 71 FR 69282 (Nov. 30, 2006).
7 76 FR 21256 (April 15, 2011). The Amended
Assessment Regulations provided that the FDIC
would not make any new large bank adjustments
until revised guidelines were published for
comment and approved by the FDIC’s Board of
Directors. Although the FDIC chose in this instance
to publish the proposed guidelines and solicit
comment, notice and comment are not required and
need not be employed to make future changes to the
guidelines.
TABLE 1—SCORECARD FOR LARGE INSTITUTIONS
Scorecard measures and components Measure weights
(percent) Component weights
(percent)
P Performance Score
P.1 Weighted Average CAMELS Rating ....................................................................................... 100 30
P.2 Ability to Withstand Asset-Related Stress .............................................................................. .................................... 50
Tier 1 Leverage Ratio ............................................................................................................ 10 ....................................
Concentration Measure ............................................................................................................ 35 ....................................
Core Earnings/Average Quarter-End Total Assets* ................................................................. 20 ....................................
Credit Quality Measure ............................................................................................................. 35 ....................................
P.3 Ability to Withstand Funding-Related Stress .................................... 20
Core Deposits/Total Liabilities .................................................................................................. 60 ....................................
Balance Sheet Liquidity Ratio .................................................................................................. 40 ....................................
L Loss Severity Score
L.1 Loss Severity Measure ........................................................................................................... .................................... 100
* Average of five quarter-end total assets (most recent and four prior quarters).
TABLE 2—SCORECARD FOR HIGHLY COMPLEX INSTITUTIONS
Measures and components Measure weights
(percent) Component weights
(percent)
P Performance Score
P.1 Weighted Average CAMELS Rating ....................................................................................... 100 30
P.2 Ability to Withstand Asset-Related Stress ............................................................................... .................................... 50
Tier 1 Leverage Ratio ............................................................................................................ 10
Concentration Measure ............................................................................................................ 35 ....................................
Core Earnings/Average Quarter-End Total Assets .................................................................. 20 ....................................
Credit Quality Measure and Market Risk Measure .................................................................. 35 ....................................
P.3 Ability to Withstand Funding-Related Stress .......................................................................... .................................... 20
Core Deposits/Total Liabilities .................................................................................................. 50 ....................................
Balance Sheet Liquidity Ratio .................................................................................................. 30 ....................................
Average Short-Term Funding/Average Total Assets ............................................................... 20 ....................................
L Loss Severity Score
L.1 Loss Severity ............................................................................................................................ .................................... 100
* Average of five quarter-end total assets (most recent and four prior quarters).
In most cases, the total score
produced by an institution’s scorecard
should correctly reflect the institution’s
overall risk relative to other large
institutions; however, the FDIC believes
it is important that it have the ability to
consider idiosyncratic or other relevant
risk factors not reflected in the
scorecards. The Amended Assessment
Regulations, therefore, allow the FDIC to
make a limited adjustment to an
institution’s total score up or down by
no more than 15 points (the large bank
adjustment). The resulting score is then
converted to an initial base assessment
rate, which, after application of other
possible adjustments, results in the
institution’s total assessment rate.5 The
total assessment rate is multiplied by
the institution’s assessment base to
calculate the amount of its assessment
obligation. Adjustments are made to
ensure that the total score produced by
an institution’s scorecard appropriately
reflects the institution’s overall risk
relative to other large institutions.
The FDIC promulgated regulations
allowing for the adjustment of large
institutions’ quarterly assessment rates
in 2006.6 The FDIC set forth the
procedures for these adjustments in
guidelines that were published in 2007
(2007 Guidelines). The 2007 Guidelines
were designed to ensure that the
adjustment process was fair and
transparent and that any decision to
make an adjustment was well
supported. The FDIC has exercised its
adjustment authority when warranted
since that time.
Following adoption of the Amended
Assessment Regulations in February
2011, the FDIC proposed new guidelines
that reflect the methodology it now uses
to determine assessment rates for large
and highly complex institutions. The
FDIC sought comment on all aspects of
the proposed guidelines.7 The FDIC
received eight comments related to the
guidelines, which are described below
in the relevant portion of the guidelines.
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mstockstill on DSK4VPTVN1PROD with NOTICES
5 Adjustments to the initial base assessment rate
may include an unsecured debt adjustment,
depository institution debt adjustment, and a
brokered deposit adjustment. 6 71 FR 69282 (Nov. 30, 2006).
7 76 FR 21256 (April 15, 2011). The Amended
Assessment Regulations provided that the FDIC
would not make any new large bank adjustments
until revised guidelines were published for
comment and approved by the FDIC’s Board of
Directors. Although the FDIC chose in this instance
to publish the proposed guidelines and solicit
comment, notice and comment are not required and
need not be employed to make future changes to the
guidelines.
TABLE 1—SCORECARD FOR LARGE INSTITUTIONS
Scorecard measures and components Measure weights
(percent) Component weights
(percent)
P Performance Score
P.1 Weighted Average CAMELS Rating ....................................................................................... 100 30
P.2 Ability to Withstand Asset-Related Stress .............................................................................. .................................... 50
Tier 1 Leverage Ratio ............................................................................................................ 10 ....................................
Concentration Measure ............................................................................................................ 35 ....................................
Core Earnings/Average Quarter-End Total Assets* ................................................................. 20 ....................................
Credit Quality Measure ............................................................................................................. 35 ....................................
P.3 Ability to Withstand Funding-Related Stress .................................... 20
Core Deposits/Total Liabilities .................................................................................................. 60 ....................................
Balance Sheet Liquidity Ratio .................................................................................................. 40 ....................................
L Loss Severity Score
L.1 Loss Severity Measure ........................................................................................................... .................................... 100
* Average of five quarter-end total assets (most recent and four prior quarters).
TABLE 2—SCORECARD FOR HIGHLY COMPLEX INSTITUTIONS
Measures and components Measure weights
(percent) Component weights
(percent)
P Performance Score
P.1 Weighted Average CAMELS Rating ....................................................................................... 100 30
P.2 Ability to Withstand Asset-Related Stress ............................................................................... .................................... 50
Tier 1 Leverage Ratio ............................................................................................................ 10
Concentration Measure ............................................................................................................ 35 ....................................
Core Earnings/Average Quarter-End Total Assets .................................................................. 20 ....................................
Credit Quality Measure and Market Risk Measure .................................................................. 35 ....................................
P.3 Ability to Withstand Funding-Related Stress .......................................................................... .................................... 20
Core Deposits/Total Liabilities .................................................................................................. 50 ....................................
Balance Sheet Liquidity Ratio .................................................................................................. 30 ....................................
Average Short-Term Funding/Average Total Assets ............................................................... 20 ....................................
L Loss Severity Score
L.1 Loss Severity ............................................................................................................................ .................................... 100
* Average of five quarter-end total assets (most recent and four prior quarters).
In most cases, the total score
produced by an institution’s scorecard
should correctly reflect the institution’s
overall risk relative to other large
institutions; however, the FDIC believes
it is important that it have the ability to
consider idiosyncratic or other relevant
risk factors not reflected in the
scorecards. The Amended Assessment
Regulations, therefore, allow the FDIC to
make a limited adjustment to an
institution’s total score up or down by
no more than 15 points (the large bank
adjustment). The resulting score is then
converted to an initial base assessment
rate, which, after application of other
possible adjustments, results in the
institution’s total assessment rate.5 The
total assessment rate is multiplied by
the institution’s assessment base to
calculate the amount of its assessment
obligation. Adjustments are made to
ensure that the total score produced by
an institution’s scorecard appropriately
reflects the institution’s overall risk
relative to other large institutions.
The FDIC promulgated regulations
allowing for the adjustment of large
institutions’ quarterly assessment rates
in 2006.6 The FDIC set forth the
procedures for these adjustments in
guidelines that were published in 2007
(2007 Guidelines). The 2007 Guidelines
were designed to ensure that the
adjustment process was fair and
transparent and that any decision to
make an adjustment was well
supported. The FDIC has exercised its
adjustment authority when warranted
since that time.
Following adoption of the Amended
Assessment Regulations in February
2011, the FDIC proposed new guidelines
that reflect the methodology it now uses
to determine assessment rates for large
and highly complex institutions. The
FDIC sought comment on all aspects of
the proposed guidelines.7 The FDIC
received eight comments related to the
guidelines, which are described below
in the relevant portion of the guidelines.
VerDate Mar<15>2010 17:36 Sep 16, 2011 Jkt 223001 PO 00000 Frm 00047 Fmt 4703 Sfmt 4703 E:\FR\FM\19SEN1.SGM 19SEN1
mstockstill on DSK4VPTVN1PROD with NOTICES