Notice2022-24781
Agency Information Collection Activities: Proposed Collection Renewal; Comment Request
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
November 15, 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. 3064-0139, -0169, -0189, and -0202). The notice of the proposed renewal for these information collections was previously published in the Federal Register on September 14, 2022, allowing for a 60-day comment period.
Full Text
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<title>Federal Register, Volume 87 Issue 219 (Tuesday, November 15, 2022)</title>
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[Federal Register Volume 87, Number 219 (Tuesday, November 15, 2022)]
[Notices]
[Pages 68491-68495]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-24781]
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FEDERAL DEPOSIT INSURANCE CORPORATION
[OMB No. 3064-0139; -0169; -0189; -0202]
Agency Information Collection Activities: Proposed Collection
Renewal; Comment Request
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Notice and request for comment.
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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.
3064-0139, -0169, -0189, and -0202). The notice of the proposed renewal
for these information collections was previously published in the
Federal Register on September 14, 2022, allowing for a 60-day comment
period.
DATES: Comments must be submitted on or before December 15, 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/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#a7c4c8cacac2c9d3d4e7c1c3cec489c0c8d1"><span class="__cf_email__" data-cfemail="b2d1dddfdfd7dcc6c1f2d4d6dbd19cd5ddc4">[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#29444a484b4c5348694f4d404a074e465f"><span class="__cf_email__" data-cfemail="f9949a989b9c8398b99f9d909ad79e968f">[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: CRA Sunshine
OMB Number: None.
Affected Public: Insured state nonmember banks and state savings
associations and their affiliates and nongovernmental entities and
persons.
Burden Estimate:
[[Page 68492]]
Summary of Estimated Annual Burden (OMB No. 3064-0139)
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Number of Time per
Information collection (obligation to Type of burden (frequency of response) Number of responses per response Annual burden
respond) respondents respondent (HH:MM) (Hours)
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1. Reporting burden by covered banks-- Reporting (On occasion).......................... 1 1 1:00 1
list of agreements, 12 CFR
346.6(d)(1)(ii) (Mandatory).
2. Reporting burden by covered banks-- Reporting (On occasion).......................... 1 1 1:00 1
copies of agreements, 12 CFR
346.6(d)(1)(i) (Mandatory).
3. Reporting burden by NGEPs--copies Reporting (On occasion).......................... 1 1 1:00 1
of agreements, 12 CFR 346.6(c)
(Mandatory).
4. Reporting burden by covered banks-- Reporting (Annual)............................... 3 1 4:00 12
annual report, 12 CFR 346.7(b)
(Mandatory).
5. Reporting burden by NGEPs--annual Reporting (Annual)............................... 4 1 4:00 16
report, 12 CFR 346.7(b) (Mandatory).
6. Reporting burden by covered banks-- Reporting (Annual)............................... 3 1 1:00 3
filing NGEP report, 12 CFR
346.7(f)(2)(ii) (Mandatory).
7. Disclosure burden by covered Disclosure (On occasion)......................... 3 1 1:00 3
banks--covered agreements to public,
12 CFR 346.6(b) (Mandatory).
8. Disclosure burden by NGEPs-- Disclosure (On occasion)......................... 4 1 1:00 4
covered agreements to public, 12 CFR
346.6(b) (Mandatory).
9. Disclosure burden by covered banks Disclosure (On occasion)......................... 1 1 1:00 1
to NGEPs--CRA affiliate activities,
12 CFR 346.4(b) (Mandatory).
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Total Annual Burden (Hours)...... ................................................. .............. .............. .............. 42
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Source: FDIC.
General Description of Collection: This collection implements a
statutory requirement imposing reporting, disclosure and recordkeeping
requirements on some community reinvestment-related agreements between
insured depository institutions or affiliates, and nongovernmental
entities or persons. The information assists interested members of the
public in assessing whether the parties are fulfilling their
agreements, and helps the agencies understand how the institutions they
regulate are fulfilling their CRA responsibilities. There is no change
in the method or substance of the collection. The overall reduction in
burden hours is the result of economic fluctuation. In particular, the
decline in the estimated overall annual time burden from 100 hours in
2021 to 42 hours in 2022 is the result of a reduction in the number of
banks and NGEPs reporting.
2. Title: Qualifications for Failed Bank Acquisitions.
OMB Number: 3064-0169.
Form Number: None.
Affected Public: Insured state nonmember banks and state savings
associations.
Burden Estimate:
Summary of Estimated Annual Burden (OMB No. 3064-0169)
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Number of Time per
Information collection (obligation Type of burden (frequency of response) Number of responses per response Annual burden
to respond) respondents respondent (HH:MM) (hours)
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1. Section D--Investor Reports on Third-Party Disclosure (Annual)................... 3 12 2:00 72
Affiliates (Required to Obtain or
Retain a Benefit).
2. Section E--Maintenance of Recordkeeping (Annual)............................ 3 4 2:00 24
Business Books and Records
(Required to Obtain or Retain a
Benefit).
3. Section I--Disclosures Regarding Reporting (On occasion)........................... 1 1 4:00 4
Investors and Entities in Ownership
Chain (Required to Obtain or Retain
a Benefit).
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Total Annual Burden............. .................................................. .............. .............. .............. 100
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Source: FDIC.
General Description of Collection: The FDIC's policy statement on
Qualifications for Failed Bank Acquisitions provides guidance to
private capital investors interested in acquiring or investing in
failed insured
[[Page 68493]]
depository institutions regarding the terms and conditions for such
investments or acquisitions. The information collected pursuant to the
policy statement allows the FDIC to evaluate, among other things,
whether such investors (and their related interests) could negatively
impact the Deposit Insurance Fund, increase resolution costs, or
operate in a manner that conflict with statutory safety and soundness
principles and compliance requirements.
There is no change in the method or substance of the collection.
The overall reduction in burden hours is due to economic fluctuations.
In particular, no private capital investors have attempted to bid on
failed banks in the years since the last financial crisis. FDIC is
using a placeholder estimate of 1 respondent in recognition that a
private capital group could participate in the bidding process.
3. Title: Stress Testing Recordkeeping and Reporting.
OMB Number: 3064-0189.
Form Number: None.
Affected Public: Insured state nonmember banks and state savings
associations.
Burden Estimate:
Summary of Estimated Annual Burden (OMB No. 3064-0189)
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Number of Time per
Information collection (obligation to Type of burden (frequency of response) Number of responses per response Annual burden
respond) respondents respondent (HH:MM) (hours)
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1. Annual Stress Test Reporting Reporting (Biennial)............................. 1 1 80:00 80
Template and Documentation for
covered banks, 12 CFR Part 325.6-
(Mandatory)*.
2. Methodologies and Practices for Recordkeeping (Biennial)......................... 1 1 213:00 213
covered banks, 12 CFR Part 325.5
(Mandatory)*.
3. Publication--covered banks, 12 CFR Third-Party Disclosure (Biennial)................ 1 1 53:00 53
Part 325.7 (Mandatory)*.
4. Documentation of Assumptions, Recordkeeping (Annual)........................... 56 1 40:00 2,240
Uncertainties and Limitations for
FDIC-supervised IDIs with total
consolidated assets of $10 billion
or more, 2009 Interagency Guidance
(Voluntary).
5. Summary of Test Result for FDIC- Recordkeeping (Annual)........................... 56 1 40:00 2,240
supervised IDIs with total
consolidated assets of $10 billion
or more, 2009 Interagency Guidance
(Voluntary).
6. Policies and Procedures for FDIC- Recordkeeping (Annual)........................... 5 1 180:00 900
supervised IDIs with total
consolidated assets of $10 billion
or more, 2009 Interagency Guidance
(Voluntary).
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Total Annual Burden (Hours)...... ................................................. .............. .............. .............. 5,726
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Source: FDIC.
General Description of Collection: The Federal Deposit Insurance
Corporation (FDIC) has issued a rule requiring periodic stress testing
by FDIC-supervised institutions having more than $250 billion in total
assets, consistent with changes made by Section 401 of the Economic
Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).
Section 165(i)(2) of the Dodd-Frank Act requires each primary Federal
regulator to issue consistent and comparable regulations to: (1) ensure
that certain financial companies conduct stress tests; (2) establish
the form and content of the required reports of such stress tests, and
(3) require companies to publish a summary of the stress test results.
As originally enacted, section 165(i)(2)(C) applied to all IDIs with
average total consolidated assets of $10 billion or greater, required
such IDIs to conduct annual stress tests, and required the use of three
scenarios: baseline, adverse, and severely adverse. Consistent with the
requirements of section 165(i)(2)(C), as originally enacted, the FDIC
published its Final Rule implementing Section 165(i)(2) on October 15,
2012.\1\ The requirements under part 325 applied to FDIC-supervised
IDIs with average total consolidated assets of $10 billion or greater.
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\1\ See <a href="https://www.govinfo.gov/content/pkg/FR-2012-10-15/pdf/FR-2012-10-15.pdf">https://www.govinfo.gov/content/pkg/FR-2012-10-15/pdf/FR-2012-10-15.pdf</a> (pp. 8--18). While the Dodd-Frank Act specified a
total consolidated asset size threshold of $10 billion, it did not
specify a calculation methodology. As such, the FDIC's implementing
regulations determined applicability by assessing average total
consolidated assets over the last four consecutive Call Reports.
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The Economic Growth, Regulatory Relief, and Consumer Protection Act
(EGRRCPA), enacted on May 24, 2018, amended certain aspects of the
company-run stress-testing requirements in section 165(i)(2) of the
Dodd-Frank Act. Specifically, section 401 of EGRRCPA raises the minimum
asset threshold from $10 billion \2\ to $250 billion; \3\ replaces the
requirement for covered banks to conduct stress tests ``annually'' with
the requirement to conduct stress tests ``periodically;'' and no longer
requires the ``adverse'' stress-testing scenario, thus reducing the
number of required stress test scenarios from three to two. EGRRCPA
also makes certain conforming and technical changes that were
previously included in an April 2018 notice of proposed rulemaking \4\
that was superseded, in part, by the enactment of EGRRCPA. The EGRRCPA
amendments to the section 165(i)(2) stress testing
[[Page 68494]]
requirements became effective eighteen months after enactment.
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\2\ See <a href="https://www.govinfo.gov/content/pkg/FR-2012-10-15/pdf/2012-25194.pdf">https://www.govinfo.gov/content/pkg/FR-2012-10-15/pdf/2012-25194.pdf</a>.
\3\ See <a href="https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23036.pdf">https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23036.pdf</a>.
\4\ <a href="https://www.federalregister.gov/documents/2018/04/02/2018-06162/annual-stress-test-applicability-transition-for-covered-banks-with-50-billion-or-more-in-assets">https://www.federalregister.gov/documents/2018/04/02/2018-06162/annual-stress-test-applicability-transition-for-covered-banks-with-50-billion-or-more-in-assets</a>.
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The FDIC's Final Rule \5\ implementing EGRRCPA specified that, in
light of the frequency change from ``annually'' to ``periodically,''
stress tests would be conducted biennially, unless the covered bank is
consolidated under a bank holding company that is required by Federal
Reserve Board to conduct annual stress tests, in which case such IDI
subsidiaries are also to conduct annual stress tests.\6\
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\5\ See <a href="https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23036.pdf">https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23036.pdf</a>.
\6\ See <a href="https://www.federalregister.gov/documents/2018/11/29/2018-24464/prudential-standards-for-large-bank-holding-companies-and-savings-and-loan-holding-companies">https://www.federalregister.gov/documents/2018/11/29/2018-24464/prudential-standards-for-large-bank-holding-companies-and-savings-and-loan-holding-companies</a>--Category I and Category II
bank holding companies and their IDI subsidiaries are required to
stress test annually.
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The aspects of part 325 that constitute an information collection
are those that require a banking organization to (i) file stress test
reports to be filed periodically with the FDIC and the Board of
Governors of the Federal Reserve System (the Board) in the time,
manner, and form specified by the FDIC (12 CFR 325.6); (ii) establish
and maintain a system of controls, oversight, and documentation,
including policies and procedures that describe the covered bank's
stress test practices and methodologies, as well as processes for
updating such bank's stress test practices, as well as specific
calculations that must be made by the banking organization during its
stress tests (12 CFR 325.5); and (iii) publish a summary of the results
of its stress tests (12 CFR 325.7).
On May 17, 2012, the Federal Deposit Insurance Corporation (FDIC),
the Office of the Comptroller of the Currency (OCC), and the Board of
Governors of the Federal Reserve (FRB), published the 2012 Interagency
Guidance on the use of stress testing as a means to better understand
the range of a banking organization's potential risk exposures. The
guidance is intended for IDIs with total consolidated assets of more
than $10 billion \7\ and provides an overview of how a banking
organization should structure its stress testing activities to ensure
they fit into the banking organization's overall risk management
program. The purpose of the guidance is to outline broad principles for
a satisfactory stress testing framework and describe the manner in
which stress testing should be used, that is as an integral component
of risk management applicable at various levels of aggregation within a
banking organization as well as a tool for capital and liquidity
planning. The 2012 Interagency Guidance recommends that IDIs stress
test in coordination with a their ``overall strategy and annual
planning cycles'' and assess and review their stress testing frameworks
at least once a year to ensure that stress testing coverage is
comprehensive, tests are relevant and current, methodologies are sound,
and results are properly considered.''
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\7\ The $10 billion asset threshold in the 2012 Interagency
Guidance was calculated using total consolidated assets as of the
most recent period, instead of the four-quarter rolling average of
total consolidated assets that was used in determining eligibility
for stress tests under the Dodd-Frank Act. However, the 2012
Interagency Guidance also recommends that ``banking organizations
with assets near the threshold should use reasonable judgment and
consider, in conjunction with their primary federal supervisor as
appropriate, whether they should consider preparing to follow the
guidance.'' See <a href="https://www.federalregister.gov/documents/2012/05/17/2012-11989/supervisory-guidance-on-stress-testing-for-banking-organizations-with-more-than-10-billion-in-total">https://www.federalregister.gov/documents/2012/05/17/2012-11989/supervisory-guidance-on-stress-testing-for-banking-organizations-with-more-than-10-billion-in-total</a>.
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The aspects of the 2012 Interagency Guidance that constitute an
information collection are the provisions that state a banking
organization should (i) have a stress testing framework that includes
clearly defined objectives, well-designed scenarios tailored to the
banking organization's business and risks, well documented assumptions,
conceptually sound methodologies to assess potential impact on the
banking organization's financial condition (Section II); (ii) maintain
an internal summary of test results to document at a high level the
range of its stress testing activities and outcomes, as well as
proposed follow-up actions (Section III); and (iii) have policies and
procedures for a stress testing framework (Section VI).
There has been no change in the substance or methodology of this
information collection. The 1,386 hour increase in total estimated
annual burden from 4,340 hours in 2019 to 5,726 hours currently is
driven by an increase in the number of FDIC-supervised IDIs that have
at least $10 billion in total consolidated assets, which results in an
increase in the estimated number of respondents for IC 4 and IC 5 from
39 to 56 each, as well as an increase in the estimated number of annual
respondents in IC 6 from 1 to 5. This change is attenuated by the
change in stress testing frequency for institutions subject to stress
testing requirements under the Dodd-Frank Act, as amended by EGRRCPA,
from annually to biennially.
4. Title: Recordkeeping for Timely Deposit Insurance Determination.
OMB Number: 3064-0202.
Form Number: None.
Affected Public: Insured state nonmember banks and state savings
associations.
Burden Estimate:
Summary of Estimated Annual Burden
[OMB No. 3064-0202]
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Number of Time per
Information collection (obligation Type of burden (frequency of response) Number of responses per response Annual burden
to respond) respondents respondent (HH:MM) (hours)
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1. Implementation--Lowest Complexity, Recordkeeping (Annual)........................... 1 1 3145:00 3,145
12 CFR 370 (Mandatory).
2. Implementation--Middle Complexity, Recordkeeping (Annual)........................... 1 1 5960:00 5,960
12 CFR 370 (Mandatory).
3. Implementation--Highest Recordkeeping (Annual)........................... 1 1 36307:00 36,307
Complexity, 12 CFR 370 (Mandatory).
4. Ongoing--Lowest Complexity, 12 CFR Recordkeeping (Annual)........................... 3 1 5:00 15
370 (Mandatory).
5. Ongoing--Middle Complexity, 12 CFR Recordkeeping (Annual)........................... 15 1 60:00 900
370 (Mandatory).
6. Ongoing--Highest Complexity, 12 Recordkeeping (Annual)........................... 10 1 20:00 200
CFR 370 (Mandatory).
7. Request for Exception, 12 CFR Reporting (On occasion).......................... 1 1 20:00 20
370.8(b) (RtoB).
[[Page 68495]]
8. Request for Release, 12 CFR Reporting (On occasion).......................... 1 1 200:00 200
370.8(c) (RtoB).
9. Request for Extension, 12 CFR Reporting (On occasion).......................... 1 1 162:00 162
370.6(b) (RtoB).
10. Request for Exemption, 12 CFR Reporting (On occasion).......................... 1 1 163:00 163
370.8(a) (RtoB).
11. Annual Certification and Report, Reporting (Annual)............................... 30 1 186:00 5,580
12 CFR 370.10(a) (Mandatory).
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Total Annual Burden (Hours):..... ................................................. .............. .............. .............. 52,652
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Source: FDIC.
General Description of Collection: When a bank fails, the FDIC must
provide depositors insured funds ``as soon as possible'' after failure
while also resolving the failed bank in the least costly manner. The 12
CFR part 370 facilitates prompt payment of FDIC-insured deposits when
large insured depository institutions fail. The rule requires insured
depository institutions that have two million or more deposit accounts
(``covered institutions''), to maintain complete and accurate data on
each depositor's ownership interest by right and capacity for all of
the covered institution's deposit accounts. The covered institutions
are required to develop the capability to calculate the insured and
uninsured amounts for each deposit owner, by ownership right and
capacity, for all deposit accounts. This data would be used by the FDIC
to make timely deposit insurance determinations in the event of a
covered insured depository institution's failure.
There is no change in the method or substance of the collection.
The overall reduction in burden hours arises almost entirely from the
reduction in the number of respondents for ICs 1-3 capturing the
implementation burdens, especially the reduction in the number of
covered institutions of Highest Complexity. The reduction for that IC
alone is almost 400,000 hours per year.
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 November 8, 2022.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2022-24781 Filed 11-14-22; 8:45 am]
BILLING CODE 6714-01-P
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