Notice2022-00842
Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Libor Self-Assessment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 18, 2022
Issuing agencies
Treasury DepartmentComptroller of the Currency
Abstract
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on the renewal of an information collection as required by the Paperwork Reduction Act of 1995 (PRA). In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OCC is soliciting comment concerning renewal of a collection of information titled, "Libor Self-Assessment." The OCC also is giving notice that it has sent the collection to OMB for review.
Full Text
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<title>Federal Register, Volume 87 Issue 11 (Tuesday, January 18, 2022)</title>
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[Federal Register Volume 87, Number 11 (Tuesday, January 18, 2022)]
[Notices]
[Pages 2666-2667]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00842]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Information Collection
Renewal; Submission for OMB Review; Libor Self-Assessment
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Notice and request for comment.
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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites the general public and other Federal
agencies to take this opportunity to comment on the renewal of an
information collection as required by the Paperwork Reduction Act of
1995 (PRA). In accordance with the requirements of the PRA, the OCC may
not conduct or sponsor, and the respondent is not required to respond
to, an information collection unless it displays a currently valid
Office of Management and Budget (OMB) control number. The OCC is
soliciting comment concerning renewal of a collection of information
titled, ``Libor Self-Assessment.'' The OCC also is giving notice that
it has sent the collection to OMB for review.
DATES: Comments must be submitted on or before February 17, 2022.
ADDRESSES: Commenters are encouraged to submit comments by email, if
possible. You may submit comments by any of the following methods:
<bullet> Email: <a href="/cdn-cgi/l/email-protection#f78785969e999198b7989494d98385929684d9909881"><span class="__cf_email__" data-cfemail="d7a7a5b6beb9b1b897b8b4b4f9a3a5b2b6a4f9b0b8a1">[email protected]</span></a>.
<bullet> Mail: Chief Counsel's Office, Attention: Comment
Processing, 1557-0349, Office of the Comptroller of the Currency, 400
7th Street SW, Suite 3E-218, Washington, DC 20219.
<bullet> Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
<bullet> Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``1557-0349'' in your comment. In general, the OCC will publish
comments on <a href="http://www.reginfo.gov">www.reginfo.gov</a> without change, including any business or
personal information provided, 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.
Written comments and recommendations for the proposed information
collection should also be sent within 30 days of publication of this
notice to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
On October 22, 2021, the OCC published a 60-day notice for this
information collection, 86 FR 58723. You may review comments and other
related materials that pertain to this information collection following
the close of the 30-day comment period for this notice by the method
set forth in the next bullet.
<bullet> Viewing Comments Electronically: Go to <a href="http://www.reginfo.gov">www.reginfo.gov</a>.
Hover over the ``Information Collection Review'' tab and click on
``Information Collection Review'' dropdown. Underneath the ``Currently
under Review'' section heading, from the drop-down menu select
``Department of Treasury'' and then click ``submit.'' This information
collection can be located by searching by OMB control number ``1557-
0349'' or ``Libor Self-Assessment.'' Upon finding the appropriate
information
[[Page 2667]]
collection, click on the related ``ICR Reference Number.'' On the next
screen, select ``View Supporting Statement and Other Documents'' and
then click on the link to any comment listed at the bottom of the
screen.
<bullet> For assistance in navigating <a href="http://www.reginfo.gov">www.reginfo.gov</a>, please
contact the Regulatory Information Service Center at (202) 482-7340.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer,
(202) 649-5490, Chief Counsel's Office, Office of the Comptroller of
the Currency, 400 7th Street SW, Washington, DC 20219.
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
agencies must obtain approval from the OMB for each collection of
information that they conduct or sponsor. ``Collection of information''
is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency
requests or requirements that members of the public submit reports,
keep records, or provide information to a third party. The OCC asks
that OMB extend its emergency approval of this collection.
Title: Libor Self-Assessment.
OMB Control No.: 1557-0349. Type of Review: Regular. Description:
The cessation of the London InterBank Offered Rate (Libor) prompted the
OCC to create a self-assessment tool for banks to use in preparing for
the Libor cessation. The self-assessment tool was created to assess the
appropriateness of a bank's Libor transition plan, the execution of the
plan by its management, and related matters.
The Intercontinental Exchange Libor is a reference rate that is
intended to reflect the cost of unsecured interbank borrowing. Libor is
published daily in five currencies with seven maturities ranging from
overnight to 12 months. It is used globally in the over-the-counter
derivatives market, bonds, loan products, and securitizations. As of
the end of 2020, $223 trillion of financial instruments were exposed to
U.S. dollar (USD) Libor as the primary reference rate.\1\
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\1\ <a href="https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2021/USD-LIBOR-transition-progress-report-mar-21.pdf">https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2021/USD-LIBOR-transition-progress-report-mar-21.pdf</a>.
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While certain reference rates have ceased to be reported in the
past, the significant exposure of the financial markets to Libor
creates the need for banks to assess whether they are identifying
applicable risks, preparing for Libor cessation, and successfully
transitioning to replacement reference rates. Libor is referenced
globally, and its cessation could affect banks of all sizes through
direct or indirect exposure.
There is risk of market disruptions, litigation, and destabilized
balance sheets if acceptable replacement rates do not attract
sufficient market-wide acceptance or if contracts cannot seamlessly
transition to new rates. A bank's risk exposure from Libor cessation
depends on the bank's specific circumstances. Many community banks may
not offer products or services that use Libor. However, community banks
could have Libor exposure in positions such as Federal Home Loan Bank
(FHLB) borrowings, mortgage-backed securities, or bonds in the banks'
investment portfolios.
Libor exposure can exist in all product categories and lines of
business, both on or off the balance sheet, and in asset management
activities. Risk can also emanate from third-party relationships
because Libor is often used in pricing models, financial models, and in
other parts of banks' infrastructure, such as core processing.
The ubiquity of Libor, present in over $200 trillion notional
contracts, makes moving off the rate incredibly complicated. Many
existing contracts do not include sufficient provisions if Libor
becomes unavailable (known as fallback provisions). Without adequate
preparation, Libor cessation could cause market disruption and present
risks to banks and their customers. In addition, fallback provision
language does not sufficiently account for a permanent cessation of
Libor. The Federal banking agencies published a statement communicating
that banks should discontinue entering into contracts that use USD
Libor as a reference rate as soon as practicable and in any event by
the end of 2021 (with a few exceptions for orderly market support).\2\
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\2\ <a href="https://www.occ.gov/news-issuances/bulletins/2020/bulletin-2020-104.html#ft1">https://www.occ.gov/news-issuances/bulletins/2020/bulletin-2020-104.html#ft1</a>.
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Given that banks should not be creating new Libor exposure, the
prevalence of Libor, and the remaining work to be done within the
timeframe described above, the OCC has made this self-assessment tool
available to banks, due to the immediate need and the brief duration of
use, to help banks prepare for Libor-related risk.
Banks may use the self-assessment to determine whether they have
risk management processes in place to identify and mitigate their Libor
transition risks. Not all sections or questions will apply to all
banks. Applicable risks (e.g., operational, compliance, strategic, and
reputation) can be identified when scoping and completing Libor
cessation preparedness assessments.
Affected Public: Businesses or other for-profit.
Burden Estimates:
Estimated Number of Respondents: 1,096.
Estimated Annual Burden: 8,768 hours.
Frequency of Response: On occasion.
Comments: On October 22, 2021, the OCC published a 60-day notice
for this information collection, 86 FR 58723. No comments were
received. Comments continue to be solicited on:
(a) Whether the collection of information is necessary for the
proper performance of the OCC's functions, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimate of the burden of the
information collection, including the validity of the methodology and
assumptions used;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected; and
(d) Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology.
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Patrick T. Tierney,
Assistant Director, Bank Advisory, Office of the Comptroller of the
Currency.
[FR Doc. 2022-00842 Filed 1-14-22; 8:45 am]
BILLING CODE 4810-33-P
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