18175Federal Register / Vol. 84, No. 83 / Tuesday, April 30, 2019 / Proposed Rules
agency decision by forwarding the
decision and order to the contractor, or
subcontractor, involved.
(b) An employer’s failure or refusal to
comply with a final agency decision and
order under this regulation may result
in a contracting officer’s decision to
disallow certain costs or terminate the
contract for default. In the event of a
contracting officer’s decision to disallow
costs or terminate a contract for default,
the contractor may file a claim under
the disputes procedures of the contract.
§ 708.39 Sections 6 and 7 of the Contract
Disputes Act.
A final agency decision and order
issued pursuant to this regulation is not
considered a claim by the government
against a contractor or ‘‘a decision by
the contracting officer’’ under sections 6
and 7 of the Contract Disputes Act (41
U.S.C. 605 and 41 U.S.C. 606).
§ 708.40 Notice of program requirements.
Employers who are covered by this
part must inform their employees about
these regulations by posting notices in
conspicuous places at the work site.
These notices must include the name,
address, telephone number, and website
or email address of the DOE office
where employees can file complaints
under this part.
§ 708.41 Referral to another agency.
Notwithstanding the provisions of
this part, the Secretary of Energy retains
the right to request that a complaint
filed under this part be accepted by
another Federal agency for investigation
and factual determinations.
§ 708.42 Extension of deadlines.
The Secretary of Energy (or the
Secretary’s designee) may approve the
extension of any deadline established by
this part, and the OHA Director may
approve the extension of any deadline
under § 708.22 through § 708.34 of this
subpart (relating to the investigation,
hearing, and OHA appeal process).
Failure by the DOE to comply with
timing requirements does not create a
substantive right for any party to
overturn a DOE decision on a
complaint.
§ 708.43 Affirmative duty not to retaliate.
DOE contractors will not retaliate
against any employee because the
employee (or any person acting at the
request of the employee) has taken an
action listed in § 708.5(a) through
§ 708.5(c).
[FR Doc. 2019–08599 Filed 4–29–19; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 3
[Docket ID OCC–2019–0001]
RIN 1557–AE60
FEDERAL RESERVE SYSTEM
12 CFR Part 217
[Docket ID R–1659]
RIN 7100–AF 46
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 324
RIN 3064–AE81
Regulatory Capital Rule: Revisions to
the Supplementary Leverage Ratio To
Exclude Certain Central Bank Deposits
of Banking Organizations
Predominantly Engaged in Custody,
Safekeeping and Asset Servicing
Activities
AGENCY: The Office of the Comptroller
of the Currency; the Board of Governors
of the Federal Reserve System; and the
Federal Deposit Insurance Corporation.
ACTION: Joint notice of proposed
rulemaking.
SUMMARY: The Office of the Comptroller
of the Currency, Board of Governors of
the Federal Reserve System, and Federal
Deposit Insurance Corporation are
inviting public comment on a proposal
to implement section 402 of the
Economic Growth, Regulatory Relief,
and Consumer Protection Act. Section
402 directs these agencies to amend the
supplementary leverage ratio of the
regulatory capital rule to exclude certain
funds of banking organizations
deposited with central banks if the
banking organization is predominantly
engaged in custody, safekeeping, and
asset servicing activities.
DATES: Comments should be received on
or before July 1, 2019.
ADDRESSES: Comments should be
directed to:
OCC: You may submit comments to
the OCC by any of the methods set forth
below. Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal or email, if possible.
Please use the title ‘‘Regulatory Capital
Rule: Revisions to the Supplementary
Leverage Ratio to Exclude Certain
Central Bank Deposits of Banking
Organizations Predominantly Engaged
in Custody, Safekeeping and Asset
Servicing Activities’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
‘‘Regulations.gov’’: Go to
www.regulations.gov. Enter ‘‘Docket ID
OCC–2019–0001’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting
public comments.
• Email: regs.comments@
occ.treas.gov.
• Mail: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2019–0001’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website without
change, including any business or
personal information that you provide
such as name and address information,
email addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically:
Go to www.regulations.gov. Enter
‘‘Docket ID OCC–2019–0001’’ in the
Search box and click ‘‘Search.’’ Click on
‘‘Open Docket Folder’’ on the right side
of the screen. Comments and supporting
materials can be viewed and filtered by
clicking on ‘‘View all documents and
comments in this docket’’ and then
using the filtering tools on the left side
of the screen.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
• Viewing Comments Personally: You
may personally inspect comments at the
OCC, 400 7th Street SW, Washington,
VerDate Sep<11>2014 17:27 Apr 29, 2019 Jkt 247001 PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 E:\FR\FM\30APP1.SGM 30APP1
amozie on DSK9F9SC42PROD with PROPOSALS
agency decision by forwarding the
decision and order to the contractor, or
subcontractor, involved.
(b) An employer’s failure or refusal to
comply with a final agency decision and
order under this regulation may result
in a contracting officer’s decision to
disallow certain costs or terminate the
contract for default. In the event of a
contracting officer’s decision to disallow
costs or terminate a contract for default,
the contractor may file a claim under
the disputes procedures of the contract.
§ 708.39 Sections 6 and 7 of the Contract
Disputes Act.
A final agency decision and order
issued pursuant to this regulation is not
considered a claim by the government
against a contractor or ‘‘a decision by
the contracting officer’’ under sections 6
and 7 of the Contract Disputes Act (41
U.S.C. 605 and 41 U.S.C. 606).
§ 708.40 Notice of program requirements.
Employers who are covered by this
part must inform their employees about
these regulations by posting notices in
conspicuous places at the work site.
These notices must include the name,
address, telephone number, and website
or email address of the DOE office
where employees can file complaints
under this part.
§ 708.41 Referral to another agency.
Notwithstanding the provisions of
this part, the Secretary of Energy retains
the right to request that a complaint
filed under this part be accepted by
another Federal agency for investigation
and factual determinations.
§ 708.42 Extension of deadlines.
The Secretary of Energy (or the
Secretary’s designee) may approve the
extension of any deadline established by
this part, and the OHA Director may
approve the extension of any deadline
under § 708.22 through § 708.34 of this
subpart (relating to the investigation,
hearing, and OHA appeal process).
Failure by the DOE to comply with
timing requirements does not create a
substantive right for any party to
overturn a DOE decision on a
complaint.
§ 708.43 Affirmative duty not to retaliate.
DOE contractors will not retaliate
against any employee because the
employee (or any person acting at the
request of the employee) has taken an
action listed in § 708.5(a) through
§ 708.5(c).
[FR Doc. 2019–08599 Filed 4–29–19; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 3
[Docket ID OCC–2019–0001]
RIN 1557–AE60
FEDERAL RESERVE SYSTEM
12 CFR Part 217
[Docket ID R–1659]
RIN 7100–AF 46
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 324
RIN 3064–AE81
Regulatory Capital Rule: Revisions to
the Supplementary Leverage Ratio To
Exclude Certain Central Bank Deposits
of Banking Organizations
Predominantly Engaged in Custody,
Safekeeping and Asset Servicing
Activities
AGENCY: The Office of the Comptroller
of the Currency; the Board of Governors
of the Federal Reserve System; and the
Federal Deposit Insurance Corporation.
ACTION: Joint notice of proposed
rulemaking.
SUMMARY: The Office of the Comptroller
of the Currency, Board of Governors of
the Federal Reserve System, and Federal
Deposit Insurance Corporation are
inviting public comment on a proposal
to implement section 402 of the
Economic Growth, Regulatory Relief,
and Consumer Protection Act. Section
402 directs these agencies to amend the
supplementary leverage ratio of the
regulatory capital rule to exclude certain
funds of banking organizations
deposited with central banks if the
banking organization is predominantly
engaged in custody, safekeeping, and
asset servicing activities.
DATES: Comments should be received on
or before July 1, 2019.
ADDRESSES: Comments should be
directed to:
OCC: You may submit comments to
the OCC by any of the methods set forth
below. Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal or email, if possible.
Please use the title ‘‘Regulatory Capital
Rule: Revisions to the Supplementary
Leverage Ratio to Exclude Certain
Central Bank Deposits of Banking
Organizations Predominantly Engaged
in Custody, Safekeeping and Asset
Servicing Activities’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
‘‘Regulations.gov’’: Go to
www.regulations.gov. Enter ‘‘Docket ID
OCC–2019–0001’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting
public comments.
• Email: regs.comments@
occ.treas.gov.
• Mail: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2019–0001’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website without
change, including any business or
personal information that you provide
such as name and address information,
email addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically:
Go to www.regulations.gov. Enter
‘‘Docket ID OCC–2019–0001’’ in the
Search box and click ‘‘Search.’’ Click on
‘‘Open Docket Folder’’ on the right side
of the screen. Comments and supporting
materials can be viewed and filtered by
clicking on ‘‘View all documents and
comments in this docket’’ and then
using the filtering tools on the left side
of the screen.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
• Viewing Comments Personally: You
may personally inspect comments at the
OCC, 400 7th Street SW, Washington,
VerDate Sep<11>2014 17:27 Apr 29, 2019 Jkt 247001 PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 E:\FR\FM\30APP1.SGM 30APP1
amozie on DSK9F9SC42PROD with PROPOSALS
18176 Federal Register / Vol. 84, No. 83 / Tuesday, April 30, 2019 / Proposed Rules
1 Public Law 115–174, 402.
2 See 12 CFR part 3 (OCC); 12 CFR part 217
(Board); 12 CFR part 324 (FDIC). While the agencies
have codified the capital rule in different parts of
title 12 of the Code of Federal Regulations, the
internal structure of the sections within each
agency’s rule are substantially similar. All
references to sections in the capital rule or the
proposal are intended to refer to the corresponding
sections in the capital rule of each agency.
3 See generally Public Law 115–174, section 402.
4 For purposes of this proposal, the OCC’s capital
rule would be revised to include a definition of
‘‘custody bank’’, defined as a national bank or
Federal savings association that is a subsidiary of
a depository institution holding company that is a
custodial banking organization under 12 CFR 217.2.
Similarly, the FDIC’s capital rule would be revised
to include a definition of ‘‘custody bank’’, defined
as an FDIC-supervised institution that is a
subsidiary of a depository institution holding
company that is a custodial banking organization
under 12 CFR 217.2.
DC 20219. For security reasons, the OCC
requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 649–6700 or,
for persons who are deaf or hearing
impaired, TTY, (202) 649–5597. Upon
arrival, visitors will be required to
present valid government-issued photo
identification and submit to security
screening in order to inspect comments.
Board: You may submit comments,
identified by Docket No. R–1659; RIN
7100–AF 46, 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.
• Email: regs.comments@
federalreserve.gov. Include docket
number 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 are
available from the Board’s website at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons or to remove sensitive personal
identifying information at the
commenter’s request. Public comments
may also be viewed electronically or in
paper form in Room 146, 1709 New
York Avenue NW, Washington, DC
20006 between 9:00 a.m. and 5:00 p.m.
on weekdays.
FDIC: You may submit comments,
identified by RIN 3064–AE81, by any of
the following methods:
• Agency Website: http://
www.fdic.gov/regulations/laws/federal.
Follow instructions for submitting
comments on the Agency website.
• Email: Comments@FDIC.gov.
Include ‘‘RIN 3064–AE81’’ on the
subject line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/RIN
3064–AE81, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivery/Courier: Comments
may be hand delivered to the guard
station at the rear of the 550 17th Street
Building (located on F Street) on
business days between 7 a.m. and 5 p.m.
All comments received must include the
agency name (FDIC) and RIN 3064–
AE81 and will be posted without change
to http://www.fdic.gov/regulations/laws/
federal, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT:
OCC: Venus Fan, Risk Expert, or
Guowei Zhang, Risk Expert, Capital and
Regulatory Policy, (202) 649–6370; or
Patricia Dalton, Technical Expert for
Credit and Market Risk, Asset
Management, (202) 649–6401; or Rima
Kundnani, Attorney, or Christopher
Rafferty, Attorney, Chief Counsel’s
Office, (202) 649–5490; the Office of the
Comptroller of the Currency, 400 7th
Street SW, Washington, DC 20219.
Board: Constance M. Horsley, Deputy
Associate Director, (202) 452–5239;
Elizabeth MacDonald, Manager, (202)
475–6316; Mark Handzlik, Lead
Financial Institution Policy Analyst,
(202) 475–6636; or Noah Cuttler, Senior
Financial Institution Policy Analyst I,
(202) 912–4678; Division of Supervision
and Regulation; or Benjamin W.
McDonough, Assistant General Counsel,
(202) 452–2036; Mark Buresh, Counsel,
(202) 452–5270; Mary Watkins, Senior
Attorney, (202) 452–3722; Legal
Division, Board of Governors of the
Federal Reserve System, 20th and C
Streets NW, Washington, DC 20551. For
the hearing impaired only,
Telecommunication Device for the Deaf,
(202) 263–4869.
FDIC: Benedetto Bosco, Chief, Capital
Policy Section, bbosco@fdic.gov;
Michael Maloney, Senior Policy
Analyst, mmaloney@fdic.gov; Dushan
Gorechan, Financial Analyst,
dgorechan@fdic.gov; Keith Bergstresser,
Capital Markets Policy Analyst,
kbergstresser@fdic.gov; or
regulatorycapital@fdic.gov; Capital
Markets Branch, Division of Risk
Management Supervision, (202) 898–
6888; Michael Phillips, Counsel,
mphillips@fdic.gov; Catherine Wood,
Acting Supervisory Counsel, cawood@
fdic.gov; or Alexander Bonander,
Attorney, abonander@fdic.gov;
Supervision Branch, Legal Division,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
A. Overview of the Proposal
B. Leverage Capital Requirements
C. Overview of Custody, Safekeeping,
Asset Servicing Activities and Fiduciary
Accounts
D. Section 402 and the Supplementary
Leverage Ratio
II. Summary of the Proposal
A. Scope of Applicability
B. Mechanics of the Central Bank Deposit
Exclusion
C. Central Bank Deposit Exclusion Limit
D. Regulatory Reporting Requirements
III. Impact Analysis
IV. Regulatory Analysis
A. Paperwork Reduction Act
B. Regulatory Flexibility Act Analysis
C. Plain Language
D. Riegle Community Development and
Regulatory Improvement Act of 1994
E. OCC Unfunded Mandates Reform Act of
1995 Determination
SUPPLEMENTARY INFORMATION:
I. Background
A. Overview of the Proposal
This proposal would implement
section 402 of the Economic Growth,
Regulatory Relief, and Consumer
Protection Act (section 402).1 Section
402 directs the Office of the Comptroller
of the Currency (OCC), Board of
Governors of the Federal Reserve
System (Board), and Federal Deposit
Insurance Corporation (FDIC) (together,
the agencies) to amend the capital rule 2
to exclude from the supplementary
leverage ratio certain central bank
deposits of custodial banks. Section 402
defines a custodial bank as any
depository institution holding company
predominantly engaged in custody,
safekeeping, and asset servicing
activities, including any insured
depository institution (IDI) subsidiary of
such a holding company.3
Under the proposal, a depository
institution holding company would be
considered predominantly engaged in
custody, safekeeping, and asset
servicing activities if the U.S. top-tier
depository institution holding company
in the organization has a ratio of assets
under custody (AUC)-to-total assets of at
least 30:1. The proposal would define
such a depository institution holding
company, together with any subsidiary
depository institution, as a ‘‘custodial
banking organization.’’ 4 Under the
proposal, a custodial banking
organization would exclude deposits
placed at a ‘‘qualifying central bank’’
from the denominator of the
supplementary leverage ratio. For
purposes of the proposal, a qualifying
VerDate Sep<11>2014 17:27 Apr 29, 2019 Jkt 247001 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 E:\FR\FM\30APP1.SGM 30APP1
amozie on DSK9F9SC42PROD with PROPOSALS
1 Public Law 115–174, 402.
2 See 12 CFR part 3 (OCC); 12 CFR part 217
(Board); 12 CFR part 324 (FDIC). While the agencies
have codified the capital rule in different parts of
title 12 of the Code of Federal Regulations, the
internal structure of the sections within each
agency’s rule are substantially similar. All
references to sections in the capital rule or the
proposal are intended to refer to the corresponding
sections in the capital rule of each agency.
3 See generally Public Law 115–174, section 402.
4 For purposes of this proposal, the OCC’s capital
rule would be revised to include a definition of
‘‘custody bank’’, defined as a national bank or
Federal savings association that is a subsidiary of
a depository institution holding company that is a
custodial banking organization under 12 CFR 217.2.
Similarly, the FDIC’s capital rule would be revised
to include a definition of ‘‘custody bank’’, defined
as an FDIC-supervised institution that is a
subsidiary of a depository institution holding
company that is a custodial banking organization
under 12 CFR 217.2.
DC 20219. For security reasons, the OCC
requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 649–6700 or,
for persons who are deaf or hearing
impaired, TTY, (202) 649–5597. Upon
arrival, visitors will be required to
present valid government-issued photo
identification and submit to security
screening in order to inspect comments.
Board: You may submit comments,
identified by Docket No. R–1659; RIN
7100–AF 46, 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.
• Email: regs.comments@
federalreserve.gov. Include docket
number 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 are
available from the Board’s website at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons or to remove sensitive personal
identifying information at the
commenter’s request. Public comments
may also be viewed electronically or in
paper form in Room 146, 1709 New
York Avenue NW, Washington, DC
20006 between 9:00 a.m. and 5:00 p.m.
on weekdays.
FDIC: You may submit comments,
identified by RIN 3064–AE81, by any of
the following methods:
• Agency Website: http://
www.fdic.gov/regulations/laws/federal.
Follow instructions for submitting
comments on the Agency website.
• Email: Comments@FDIC.gov.
Include ‘‘RIN 3064–AE81’’ on the
subject line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/RIN
3064–AE81, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivery/Courier: Comments
may be hand delivered to the guard
station at the rear of the 550 17th Street
Building (located on F Street) on
business days between 7 a.m. and 5 p.m.
All comments received must include the
agency name (FDIC) and RIN 3064–
AE81 and will be posted without change
to http://www.fdic.gov/regulations/laws/
federal, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT:
OCC: Venus Fan, Risk Expert, or
Guowei Zhang, Risk Expert, Capital and
Regulatory Policy, (202) 649–6370; or
Patricia Dalton, Technical Expert for
Credit and Market Risk, Asset
Management, (202) 649–6401; or Rima
Kundnani, Attorney, or Christopher
Rafferty, Attorney, Chief Counsel’s
Office, (202) 649–5490; the Office of the
Comptroller of the Currency, 400 7th
Street SW, Washington, DC 20219.
Board: Constance M. Horsley, Deputy
Associate Director, (202) 452–5239;
Elizabeth MacDonald, Manager, (202)
475–6316; Mark Handzlik, Lead
Financial Institution Policy Analyst,
(202) 475–6636; or Noah Cuttler, Senior
Financial Institution Policy Analyst I,
(202) 912–4678; Division of Supervision
and Regulation; or Benjamin W.
McDonough, Assistant General Counsel,
(202) 452–2036; Mark Buresh, Counsel,
(202) 452–5270; Mary Watkins, Senior
Attorney, (202) 452–3722; Legal
Division, Board of Governors of the
Federal Reserve System, 20th and C
Streets NW, Washington, DC 20551. For
the hearing impaired only,
Telecommunication Device for the Deaf,
(202) 263–4869.
FDIC: Benedetto Bosco, Chief, Capital
Policy Section, bbosco@fdic.gov;
Michael Maloney, Senior Policy
Analyst, mmaloney@fdic.gov; Dushan
Gorechan, Financial Analyst,
dgorechan@fdic.gov; Keith Bergstresser,
Capital Markets Policy Analyst,
kbergstresser@fdic.gov; or
regulatorycapital@fdic.gov; Capital
Markets Branch, Division of Risk
Management Supervision, (202) 898–
6888; Michael Phillips, Counsel,
mphillips@fdic.gov; Catherine Wood,
Acting Supervisory Counsel, cawood@
fdic.gov; or Alexander Bonander,
Attorney, abonander@fdic.gov;
Supervision Branch, Legal Division,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
A. Overview of the Proposal
B. Leverage Capital Requirements
C. Overview of Custody, Safekeeping,
Asset Servicing Activities and Fiduciary
Accounts
D. Section 402 and the Supplementary
Leverage Ratio
II. Summary of the Proposal
A. Scope of Applicability
B. Mechanics of the Central Bank Deposit
Exclusion
C. Central Bank Deposit Exclusion Limit
D. Regulatory Reporting Requirements
III. Impact Analysis
IV. Regulatory Analysis
A. Paperwork Reduction Act
B. Regulatory Flexibility Act Analysis
C. Plain Language
D. Riegle Community Development and
Regulatory Improvement Act of 1994
E. OCC Unfunded Mandates Reform Act of
1995 Determination
SUPPLEMENTARY INFORMATION:
I. Background
A. Overview of the Proposal
This proposal would implement
section 402 of the Economic Growth,
Regulatory Relief, and Consumer
Protection Act (section 402).1 Section
402 directs the Office of the Comptroller
of the Currency (OCC), Board of
Governors of the Federal Reserve
System (Board), and Federal Deposit
Insurance Corporation (FDIC) (together,
the agencies) to amend the capital rule 2
to exclude from the supplementary
leverage ratio certain central bank
deposits of custodial banks. Section 402
defines a custodial bank as any
depository institution holding company
predominantly engaged in custody,
safekeeping, and asset servicing
activities, including any insured
depository institution (IDI) subsidiary of
such a holding company.3
Under the proposal, a depository
institution holding company would be
considered predominantly engaged in
custody, safekeeping, and asset
servicing activities if the U.S. top-tier
depository institution holding company
in the organization has a ratio of assets
under custody (AUC)-to-total assets of at
least 30:1. The proposal would define
such a depository institution holding
company, together with any subsidiary
depository institution, as a ‘‘custodial
banking organization.’’ 4 Under the
proposal, a custodial banking
organization would exclude deposits
placed at a ‘‘qualifying central bank’’
from the denominator of the
supplementary leverage ratio. For
purposes of the proposal, a qualifying
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amozie on DSK9F9SC42PROD with PROPOSALS