Notice2022-15216
Agency Information Collection Activities: Proposed Collection Renewal; Comment Request; OMB No. 3064-0001; -0178
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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
July 18, 2022
Issuing agencies
Federal Deposit Insurance Corporation
Abstract
The FDIC, as part of its obligations under the Paperwork Reduction Act of 1995, invites the general public and other Federal agencies to take this opportunity to comment on the request to renew the existing information collections described below (OMB Control No. 3064-0001 and -0178). The notice of the proposed renewal for these information collections was previously published in the Federal Register on April 27, 2022, allowing for a 60-day comment period.
Full Text
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<title>Federal Register, Volume 87 Issue 136 (Monday, July 18, 2022)</title>
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[Federal Register Volume 87, Number 136 (Monday, July 18, 2022)]
[Notices]
[Pages 42723-42725]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-15216]
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FEDERAL DEPOSIT INSURANCE CORPORATION
Agency Information Collection Activities: Proposed Collection
Renewal; Comment Request; OMB No. 3064-0001; -0178
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Agency information collection activities: submission for OMB
Review; comment request.
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SUMMARY: The FDIC, as part of its obligations under the Paperwork
Reduction Act of 1995, invites the general public and other Federal
agencies to take this opportunity to comment on the request to renew
the existing information collections described below (OMB Control No.
3064-0001 and -0178). The notice of the proposed renewal for these
information collections was previously published in the Federal
Register on April 27, 2022, allowing for a 60-day comment period.
DATES: Comments must be submitted on or before August 17, 2022.
ADDRESSES: Interested parties are invited to submit written comments to
the FDIC by any of the following methods:
<bullet> Agency Website: <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/index.html">https://www.fdic.gov/resources/regulations/federal-register-publications/index.html</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#8deee2e0e0e8e3f9fecdebe9e4eea3eae2fb"><span class="__cf_email__" data-cfemail="492a2624242c273d3a092f2d202a672e263f">[email protected]</span></a>. Include the name and number of
the collection in the subject line of the message.
<bullet> Mail: Manny Cabeza (202-898-3767), Regulatory Counsel, MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW,
Washington, DC 20429.
<bullet> Hand Delivery: Comments may be hand-delivered to the guard
station at the rear of the 17th Street NW building (located on F Street
NW), on business days between 7:00 a.m. and 5:00 p.m.
Written comments and recommendations for the proposed information
collection should 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.
FOR FURTHER INFORMATION CONTACT: Manny Cabeza, Regulatory Counsel, 202-
898-3767, <a href="/cdn-cgi/l/email-protection#b4d9d7d5d6d1ced5f4d2d0ddd79ad3dbc2"><span class="__cf_email__" data-cfemail="97faf4f6f5f2edf6d7f1f3fef4b9f0f8e1">[email protected]</span></a>, MB-3128, Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
Proposal to renew the following currently approved collection of
information:
1. Title: Interagency Charter and Federal Deposit Insurance
Application.
OMB Number: 3064-0001.
Form Number: 6200-05.
Affected Public: Banks or Savings Associations wishing to become
FDIC insured depository institutions.
Burden Estimate:
[[Page 42724]]
Summary of Estimated Annual Burden
[OMB No. 3064-0001]
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Number of
Information collection description Type of burden Frequency of response Number of responses per Hours per Annual burden
(obligation to respond) respondents respondent response (hours)
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Interagency Charter and Federal Reporting (Mandatory)... On Occasion............ 20 1 125 2,500
Deposit Insurance Application.
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Source: FDIC.
General Description of Collection: The Federal Deposit Insurance
Act requires financial institutions to apply to the FDIC to obtain
deposit insurance. This collection provides FDIC with the information
needed to evaluate the applications.
There is no change in the method or substance of the collection.
The decrease in burden hours is the result of economic fluctuation. In
particular, the number of respondents has decreased while the hours per
response and frequency of responses have remained the same.
2. Title: Market Risk Capital Requirements.
OMB Number: 3064-0178.
Form Number: None.
Affected Public: Insured state nonmember banks and state savings
associations.
Burden Estimate:
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Estimated Estimated
Estimated number of time per Estimated
Information collection description Type of burden Frequency of response number of responses per response annual burden
respondents respondent (hours) (hours)
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Identification of Trading Positions Recordkeeping........... Annual................. 1 1 40 40
(IC-1).
Trading and Hedging Strategies (IC-2) Recordkeeping........... Annual................. 1 1 16 16
Active Management of Covered Recordkeeping........... Annual................. 1 1 16 16
Positions (IC-3).
Prior Written Approval to Use Reporting............... Annual................. 1 1 8 8
Internal Models (IC-4).
Documentation of Internal Models and Recordkeeping........... Annual................. 1 1 24 24
Other Activities (IC-5).
Prior Approval for Certain Capital Reporting............... Annual................. 1 1 8 8
Standards (IC-6).
Demonstrate Appropriateness of Recordkeeping........... Annual................. 1 1 8 8
Proxies (IC-7).
Retention of Subportfolio Information Recordkeeping........... Annual................. 1 1 24 24
(IC-8).
Stressed VaR-based Measure Recordkeeping & Semiannual............. 1 4 40 160
Quantitative Requirements (IC-9). Reporting.
Incremental Risk Modeling Prior Reporting............... Quarterly.............. 1 4 480 1,920
Approval (IC-10).
Comprehensive Risk Measurement Prior Reporting............... Quarterly.............. 1 4 480 1,920
Approval (IC-11).
Recordkeeping for Stress Tests (IC- Recordkeeping........... Quarterly.............. 1 4 8 32
12).
Demonstrate Understanding of Recordkeeping........... Periodically........... 1 100 2 200
Securitization Positions and
Performance (IC-13).
Disclosure Policy (IC-14)............ Recordkeeping........... Annual................. 1 1 40 40
Quantitative Market Risk Disclosures Third-Party Disclosure.. Quarterly.............. 1 4 8 32
(IC-15).
Qualitative Market Risk Disclosures Third-Party Disclosure.. Annual................. 1 1 12 12
(IC-16).
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Total Annual Burden Hours........ ........................ ....................... .............. .............. .............. 4,460
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General Description of Collection: The FDIC's market risk capital
rules (12 CFR part 324, subpart F) enhance risk sensitivity, increase
transparency through enhanced disclosures and include requirements for
the public disclosure of certain qualitative and quantitative
information about the market risk of state nonmember banks and state
savings associations (covered FDIC-supervised institutions). The market
risk rule applies only if a bank holding company or bank has aggregated
trading assets and trading liabilities equal to 10 percent or more of
quarter-end total assets or $1 billion or more (covered FDIC-supervised
institutions). Currently, only one FDIC regulated entity meets the
criteria of the information collection requirements that are located at
12 CFR 324.203 through 324.212. The collection of information is
necessary to ensure capital adequacy appropriate for the level of
market risk. Section 324.203(a)(1) requires covered FDIC-supervised
institutions to have clearly defined policies and procedures for
determining which trading assets and trading liabilities are trading
positions and specifies the factors a covered FDIC-supervised
institution must take into account in drafting those policies and
procedures. Section 324.203(a)(2) requires covered FDIC supervised
institutions to have clearly defined trading and hedging strategies for
trading positions that are approved by senior management and specifies
what the strategies must articulate. Section 324.203(b)(1) requires
covered FDIC-supervised institutions to have clearly defined policies
and procedures for actively managing all covered positions and
specifies the minimum requirements for those policies and procedures.
Sections 324.203(c)(4) through 324.203(c)(10) require the annual review
of internal models and specify certain requirements for those models.
Section 324.203(d) requires the internal audit group of a covered FDIC
supervised institution to prepare an annual report to the board of
directors on the effectiveness of controls supporting the market risk
measurement systems. Section 324.204(b) requires covered FDIC-
supervised institutions to conduct quarterly back testing. Section
324.205(a)(5) requires institutions to demonstrate to the FDIC the
appropriateness of proxies used to capture risks within value-at-risk
models. Section 324.205(c) requires institutions to develop, retain,
and make available to the FDIC value-at-risk and profit and loss
information on sub
[[Page 42725]]
portfolios for two years. Section 324.206(b)(3) requires covered FDIC
supervised institutions to have policies and procedures that describe
how they determine the period of significant financial stress used to
calculate the institution's stressed value-at-risk models and to obtain
prior FDIC approval for any material changes to these policies and
procedures. Section 324.207(b)(1) details requirements applicable to a
covered FDIC-supervised institution when the covered FDIC-supervised
institution uses internal models to measure the specific risk of
certain covered positions. Section 324.208 requires covered FDIC-
supervised institutions to obtain prior written FDIC approval for
including equity positions in its incremental risk modeling. Section
324.209(a) requires prior FDIC approval for the use of a comprehensive
risk measure. Section 324.209(c)(2) requires covered FDIC-supervised
institutions to retain and report the results of supervisory stress
testing. Section 324.210(f)(2)(i) requires covered FDIC supervised
institutions to document an internal analysis of the risk
characteristics of each securitization position in order to demonstrate
an understanding of the position. Section 324.212 applies to certain
covered FDIC supervised institutions that are not subsidiaries of bank
holding companies, and requires quarterly quantitative disclosures,
annual qualitative disclosures, and a formal disclosure policy approved
by the board of directors that addresses the approach for determining
the market risk disclosures it makes.
Relative to the 2019 information collection request (ICR), the set
of information collections (ICs) included in the above burden estimates
has been revised. A detailed review of the 18 ICs included in the 2019
ICR showed that seven of the ICs appear inconsistent with the
requirements in subpart F or potentially repeat other identified PRA
requirements in subpart F. Those seven ICs have been deleted from the
set of ICs retained in this renewal.\1\ Additionally, a detailed review
of subpart F found five provisions that require covered institutions to
conduct third-party disclosure, recordkeeping, or reporting and were
not included in the 2019 ICR. The PRA requirements of these five
provisions have been introduced as ICs in the burden estimate above.\2\
Lastly, a review of the 2019 Supporting Statement for the Federal
Reserve's approved information collection (OMB No. 7100-0314) for its
Market Risk Capital Requirements regulations (12 CFR 217 subpart F)
shows that the OMB No. 7100-0314 list of ICs corresponds with the
modified set of ICs in this renewal, and would therefore promote
consistency among how the banking agencies estimate the PRA burden for
the market risk capital rule.\3\
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\1\ The ICs deleted from the 2019 ICR are: IC 4-Review of
internal models; IC 5-Internal audit report; IC 6-Backtesting
adjustments to risk-based capital ratio calculations; IC 10-Modeled
specific risk; IC 13-Requirements of stress testing; IC 14-
Securitization position; IC 17-Quantitative disclosures for each
portfolio of covered positions (IC numbers refer to those in the
2019 ICR memo).
\2\ The newly-introduced ICs are: IC 4-Prior approval to use
internal models (324.203(c)(1)); IC 5-Documentation of internal
models and other activities (324.203(f)); IC 6-Prior approval for
certain capital standards (324.204(a)(2)(vi)(B)); IC 12-
Recordkeeping for stress tests (324.209(c)(2)); and IC 13-
Demonstrate understanding of securitization positions
(324.210(f)(1)).
\3\ See <a href="https://www.reginfo.gov/public/do/PRAOMBHistory?ombControlNumber=7100-0314">https://www.reginfo.gov/public/do/PRAOMBHistory?ombControlNumber=7100-0314</a>.
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Request for Comment
Comments are invited on: (a) Whether the collection of information
is necessary for the proper performance of the FDIC's functions,
including whether the information has practical utility; (b) the
accuracy of the estimates 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 the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology. All
comments will become a matter of public record.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on July 12, 2022.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2022-15216 Filed 7-15-22; 8:45 am]
BILLING CODE 6714-01-P
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