Notice2023-28302
Revisions of Agency Information Collection of a Previously Approved Collection; Request for Comments
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
December 26, 2023
Issuing agencies
National Credit Union Administration
Abstract
As required by the Paperwork Reduction Act of 1995, The National Credit Union Administration (NCUA) is submitting the following extensions and revisions of currently approved collections to the Office of Management and Budget (OMB) for renewal.
Full Text
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<title>Federal Register, Volume 88 Issue 246 (Tuesday, December 26, 2023)</title>
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[Federal Register Volume 88, Number 246 (Tuesday, December 26, 2023)]
[Notices]
[Pages 88978-88980]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-28302]
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NATIONAL CREDIT UNION ADMINISTRATION
Revisions of Agency Information Collection of a Previously
Approved Collection; Request for Comments
AGENCY: National Credit Union Administration (NCUA).
ACTION: Notice of submission to the Office of Management and Budget.
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SUMMARY: As required by the Paperwork Reduction Act of 1995, The
National Credit Union Administration (NCUA) is submitting the following
extensions and revisions of currently approved collections to the
Office of Management and Budget (OMB) for renewal.
DATES: Written comments should be received on or before January 25,
2024 to be assured consideration.
ADDRESSES: 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: Copies of the submission may be
obtained by contacting Mahala Vixamar at (703) 718-1155, emailing
<a href="/cdn-cgi/l/email-protection#affffdeeecc0c2c2cac1dbdcefc1ccdace81c8c0d9"><span class="__cf_email__" data-cfemail="38686a797b5755555d564c4b78565b4d59165f574e">[email protected]</span></a>, or viewing the entire information collection
request at <a href="http://www.reginfo.gov">www.reginfo.gov</a>.
SUPPLEMENTARY INFORMATION:
OMB Number: 3133-NEW.
Title: Supervisory Stress Test Annual Data Collection, 12 CFR part
702, subpart C.
Type of Review: New Collection.
Abstract: The NCUA Board (Board) has determined, to protect the
National Credit Union Share Insurance Fund (NCUSIF) and the credit
union system, that the largest Federally Insured Credit Unions (FICUs)
should have systems and processes in place to monitor and maintain
their capital adequacy. Subpart C of part 702 of NCUA's regulations
codifies capital planning and stress testing requirements for federally
insured credit unions with $10 billion or more in assets (covered
credit unions). Covered credit unions are further delineated by asset
tiers. Tier I are credit union with $10 billion or more in total
assets, but less than $15 billion in total assets; tier II are credit
union with $15 billion or more in total assets, but less than $20
billion in total assets; and tier III are credit union with $20 billion
or more in total assets. Tier II and III credit unions are required to
conduct supervisory stress tests and section 702.306 (b) codifies that
NCUA reserves the right to conduct stress tests of covered credit
unions at any time and where both NCUA and a covered credit union have
conducted the tests, the results of NCUA's tests will determine whether
the covered credit union has met the requirements of this subpart. To
facilitate NCUA's ability to conduct supervisory stress test on covered
credit unions, section 702.306(d) requires that covered credit unions
must provide NCUA with any relevant qualitative or quantitative
information requested by NCUA pertinent to capital plans or stress test
under this part.
Affected Public: Private Sector: Not-for-profit institutions.
Estimated Number of Respondents: 12.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Responses: 12.
Estimated Hours per Response: 20.
Estimated Total Annual Burden Hours: 240.
OMB Number: 3133-0061.
Title: Central Liquidity Facility, 12 CFR part 725.
Type of Review: Extension of a previously approved collection.
Abstract: Part 725 contains the regulations implementing the
National Credit Union Central Liquidity Facility Act, subchapter III of
the Federal Credit Union Act. The NCUA Central Liquidity Facility is a
mixed-ownership Government corporation within NCUA. It is managed by
the NCUA Board and is owned by its member credit unions. The purpose of
the Facility is to improve the general financial stability of credit
unions by meeting their liquidity needs and thereby encourage savings,
support consumer and mortgage lending and provide basic financial
resources to all segments of the economy. The Central Liquidity
Facility achieves this purpose through operation of a Central Liquidity
Fund (CLF). The collection of information under this part is necessary
for the CLF to determine credit worthiness, as required by 12 U.S.C.
1795e(2).
Affected Public: Private Sector: Not-for-profit institutions.
Estimated Number of Respondents: 269.
Estimated Number of Responses per Respondent: 4.260.
Estimated Total Annual Responses: 1,146.
Estimated Hours per Response: 0.603.
Estimated Total Annual Burden Hours: 691.
OMB Number: 3133-0067.
Title: Corporate Credit Union Monthly Call Report and Annual Report
of Officers.
Type of Review: Revision of a currently approved collection.
Abstract: Section 202(a)(1) of the Federal Credit Union Act (Act)
requires federally insured credit unions to make reports of condition
to the NCUA Board upon dates selected by it. Corporate credit unions
report this information monthly on NCUA Form 5310, also known as the
Corporate Credit Union Call Report. The financial and statistical
information is essential to NCUA in carrying out its responsibility for
supervising corporate credit unions. The Federal Credit Union Act, 12
U.S.C. 1762, specifically requires Federal credit unions to report the
identity of credit union officials. Section 741.6(a) requires
federally-insured credit unions to submit a Report of Officials
annually to NCUA containing the annual certification of compliance with
security requirements. The branch information is requested under the
authority of Sec. 741.6 of the NCUA Rules and Regulations. NCUA
utilizes the information to monitor financial conditions in corporate
credit unions, and to allocate supervision and examination resources.
Affected Public: Private Sector: Not-for-profit institutions.
Estimated Number of Respondents: 11.
Estimated Number of Responses per Respondent: 13.
Estimated Total Annual Responses: 143.
Estimated Hours per Response: 3.77.
Estimated Total Annual Burden Hours: 539.
Reason for Change: The 5310 Corporate Call Report, Profile, and
Corporate Financial Performance Reports (CFPR) for calendar year 2024
have several changes that entail removal of references to Current
Expected Credit Loss (CECL) early adoption language; removal of the
Available for Sale Book Value references; additional supplemental
information for charitable donation accounts, subordinated debt
purchased from member credit unions, and additional information about
CUSO investments; additional liquidity, weighted average life (WAL),
and WAL with 50 percent prepayment information reporting, and Federal
Reserve Bank Excess Balance Account reporting; clarification of
Information
[[Page 88979]]
System and Technology questions on the Profile form; and corresponding
updates to the Corporate Financial Performance Report (CFPR), including
a new template for aggregate CFPRs that shows weighted average ratios.
These changes have not adjusted the current burden.
OMB Number: 3133-0199.
Title: Capital Planning and Stress Testing, 12 CFR 702-E.
Type of Review: Revision of a currently approved collection.
Abstract: To protect the National Credit Union Share Insurance Fund
(NCUSIF) and the credit union system, the largest Federally Insured
Credit Unions (FICUs) need to have systems and processes in place to
monitor and maintain their capital adequacy. Subpart C of part 702 of
NCUA's regulations codifies the capital planning and stress testing
requirements for federally insured credit unions with $10 billion or
more in assets (covered credit unions). NCUA issues these regulations
under the authority of section 120(a) requiring their supervised
institutions to conduct annual stress tests. Stress testing is needed
to assess the potential impact of expected and stressed economic
conditions on the consolidated earnings, losses, and capital of a
covered credit union over the planning horizon, taking into account the
current state of the covered credit union and the covered credit
union's risks, exposures, strategies, and activities.
NCUA received one comment from the 60-Day Notice published at 88 FR
62604. The commenter requested that NCUA provide additional
clarification regarding the use of the standard form results reporting
templates for purposes of reporting results of internal capital
planning and analysis. The commenter noted that multiple items
requested in the SST schedules were not applicable to internal capital
analysis conducted by the credit union. As an example, the commenter
cited Stress Test Capital and the Stress Test Capital Ratio currently
required to be reported in the standard form templates were not
applicable to their internal capital planning and analysis. The
commenter also stated they felt use of the standard form reporting
templates was redundant and ineffective whereas their capital plan
includes commentary, analysis and supporting schedules that bring
important context to the results of that analysis.
NCUA agrees that some revision and clarification in the reporting
instructions may be necessary to use the standard form results
reporting templates for purposes of reporting results of both annual
Supervisory Stress Testing results as well as results of internal
capital adequacy assessment analysis and planning. We disagree,
however, with the example provided by the commenter, because Section
702.304(b)(1) of the Rules and Regulations requires covered credit
unions to include, as a mandatory element in their annual capital
planning, ``a quarterly assessment of the expected sources and levels
of stress test capital over the planning horizon that reflects the
covered credit union's financial state, size, complexity, risk profile,
scope of operations, and existing level of capital, assuming both
expected and unfavorable conditions''. The requirement to measure
stress test capital as defined in section 702.302 of the Regulations
aside, NCUA acknowledges that credit unions, as part of their internal
capital adequacy assessment analysis and planning, may target different
measures. NCUA has made revisions to the standard form templates to
accommodate reporting of different capital measures in the balance
sheet tab of the templates. Instructions and definitions were adjusted
accordingly as well. Furthermore, NCUA disagrees with the commenter's
statement that reporting results of internal capital analysis using the
standard form templates would be inefficient and redundant as compared
to the detailed analysis, commentary and supporting schedules contained
in their annual capital plan. As stated in the initial PRA
notification, reporting of internal capital analysis results in a
standard form manner will allow NCUA to more efficiently and fairly
review benchmarks and opine on the strength and reasonableness of
credit unions analyses serving as the foundation of the capital
adequacy assessment and planning. NCUA acknowledges there would be some
initial burden placed on credit unions to revise and update systems and
applications used to generate results of internal capital analysis in a
form exportable to the reporting templates; however, NCUA believes that
the benefits obtained in efficiency and fairness of review and
assessment of capital analysis results outweigh these initial burdens.
The commenter also stated that NCUA's inclusion of investment data
as part of the revised annual data request is duplicative because ONES
credit unions submit other investment data on a quarterly basis. NCUA
agrees with the commenter that ONES credit unions are required to
submit some instrument-level investment data to the ONES supervisory
team on a quarterly basis. However, this only covers a portion of
credit union investment activities. The annual collection of investment
data covered by the PRA notice also captures instrument-level
investment information in credit union employee benefit and charitable
donation accounts. These additional instrument-level investment data
are needed to model the credit union's balance sheet and income
statement under stress scenarios. This information has historically
been collected by NCUA on an annual basis. While NCUA agrees that
future efforts should work to combine both investment data collections,
continuing to collect this data as part of the current annual
collection is still needed.
Affected Public: Private Sector: Not-for-profit institutions.
Estimated Number of Respondents: 12.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Responses: 12.
Estimated Hours per Response: 781.67.
Estimated Total Annual Burden Hours: 9,380.
Reason for Change: Burden increased due to the increase in the
number of credit unions meeting the asset size threshold for capital
planning and self-run stress testing and because of the updated self-
run SST results reporting template, as well as reporting of internal
capital analysis results on the updated template.
Request for Comments: Comments submitted in response to this notice
will be summarized and included in the request for Office of Management
and Budget approval. All comments will become a matter of public
record. The public is invited to submit comments concerning: (a)
whether the collection of information is necessary for the proper
performance of the function of the agency, including whether the
information will have practical utility; (b) the accuracy of the
agency's estimate of the burden of the collection of information,
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
the information on the respondents, including the use of automated
collection techniques or other forms of information technology.
[[Page 88980]]
By the National Credit Union Administration Board.
Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2023-28302 Filed 12-22-23; 8:45 am]
BILLING CODE 7535-01-P
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