Notice2025-14133
Agency Information Collection Activities: Revision of an Approved Information Collection; Submission for OMB Review; Interagency Policy Statement on Funding and Liquidity Risk Management
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
July 28, 2025
Issuing agencies
Treasury DepartmentComptroller of the Currency
Abstract
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites comment on a continuing 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 a revision to its information collection titled, "Interagency Policy Statement on Funding and Liquidity Risk Management." 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 90 Issue 142 (Monday, July 28, 2025)</title>
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[Federal Register Volume 90, Number 142 (Monday, July 28, 2025)]
[Notices]
[Pages 35579-35582]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-14133]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Revision of an Approved
Information Collection; Submission for OMB Review; Interagency Policy
Statement on Funding and Liquidity Risk Management
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 comment on a continuing 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 a revision to its information collection titled,
``Interagency Policy Statement on Funding and Liquidity Risk
Management.'' The OCC also is giving notice that it has sent the
collection to OMB for review.
DATES: Comments must be received by August 27, 2025.
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#eb9b998a82858d84ab848888c59f998e8a98c58c849d"><span class="__cf_email__" data-cfemail="5d2d2f3c34333b321d323e3e73292f383c2e733a322b">[email protected]</span></a>.
<bullet> Mail: Chief Counsel's Office, Attention: Comment
Processing, Office of the Comptroller of the Currency, Attention: 1557-
0244, 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) 293-4835.
Instructions: You must include ``OCC'' as the agency name and
``1557-0244'' 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
[[Page 35580]]
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>. You can find this
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
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.
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'' from the drop-down menu. From the ``Currently under
Review'' drop-down menu, select ``Department of Treasury'' and then
click ``submit.'' This information collection can be located by
searching OMB control number ``1557-0244'' or ``Interagency Policy
Statement on Funding and Liquidity Risk Management.'' Upon finding the
appropriate information 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. If you are deaf,
hard of hearing, or have a speech disability, please dial 7-1-1 to
access telecommunications relay services.
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501 et seq.),
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 the OMB to extend its approval of the collection in this
notice.
Title: Interagency Policy Statement on Funding and Liquidity Risk
Management.
OMB Control No.: 1557-0244.
Type of Review: Regular.
Affected Public: Businesses or other for-profit.
Description: On March 22, 2010, the OCC, the Board of Governors of
the Federal Reserve System, the Federal Deposit Insurance Corporation,
and the National Credit Union Administration (the agencies), in
conjunction with the Conference of State Bank Supervisors, issued a
policy statement on funding and liquidity risk management (Policy
Statement).\1\ The Policy Statement sets forth guidance and principles
for sound liquidity risk management that apply to OCC-supervised
national banks, Federal savings associations, and Federal branches and
agencies of foreign banking organizations (together, banks). The Policy
Statement summarizes and builds on previously issued guidance.\2\ In
2023, the agencies supplemented their liquidity risk management
guidance with an Addendum to the Policy Statement.\3\
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\1\ 75 FR 13656 (March 22, 2010). The former Office of Thrift
Supervision, which merged with the OCC on July 21, 2011, was also
involved in issuing the Policy Statement.
\2\ For national banks and Federal savings associations, refer
to the Comptroller's Handbook on Liquidity.
\3\ See OCC Bulletin 2023-25, ``Liquidity: Addendum to the
Interagency Policy Statement on Funding and Liquidity Risk
Management'' (July 28, 2023), <a href="https://www.occ.gov/news-issuances/">https://www.occ.gov/news-issuances/</a>
ulletins/2023/bulletin-2023-25.html.
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The OCC is proposing to revise this information collection to
account for all the recordkeeping provisions set forth in the Policy
Statement related to liquidity risk management policies, procedures,
and assumptions, and Contingency Funding Plans (CFPs). The information
collection currently does not account for the recordkeeping provisions
related to CFPs and does not fully account for the recordkeeping
provisions related to liquidity risk management policies, procedures,
and assumptions. In addition, the OCC is proposing to revise the
information collection to account for the guidance in the Addendum to
the Policy Statement.
Section-by-Section Analysis
Section 3 of the Policy Statement provides that banks should use
liquidity risk management processes and systems that are commensurate
with the bank's complexity, risk profile, and scope of operations. In
addition, banks' processes and plans should be well documented and
available for supervisory review.
Section 6 of the Policy Statement provides that a bank's liquidity
management process should be sufficient to meet its daily funding needs
and cover both expected and unexpected deviations from normal
operations. Accordingly, banks should have a comprehensive management
process for identifying, measuring, monitoring, and controlling
liquidity risk, which should be fully integrated into the bank's risk
management processes. Section 6 of the Policy Statement also describes
the following critical elements of sound liquidity risk management:
<bullet> Effective corporate governance consisting of oversight by
the board of directors and active involvement by management in a bank's
control of liquidity risk.
<bullet> Appropriate strategies, policies, procedures, and limits
used to manage and mitigate liquidity risk.
<bullet> Comprehensive liquidity risk measurement and monitoring
systems (including assessments of the current and prospective cash
flows or sources and uses of funds) that are commensurate with the
complexity and business activities of the bank.
<bullet> Active management of intraday liquidity and collateral.
<bullet> An appropriately diverse mix of existing and potential
future funding sources.
<bullet> Adequate levels of highly liquid marketable securities
free of legal, regulatory, or operational impediments, that can be used
to meet liquidity needs in stressful situations.
<bullet> CFPs that sufficiently address potential adverse liquidity
events and emergency cash flow requirements.
<bullet> Internal controls and internal audit processes sufficient
to determine the adequacy of the bank's liquidity risk management
process.
Section 7 of the Policy Statement provides that a bank's board of
directors or its delegated committee should oversee the establishment
and approval of liquidity management strategies, policies and
procedures, and review them at least annually. In addition, the board
should ensure that it understands and periodically reviews the bank's
CFPs for handling potential adverse liquidity events.
Section 9 of the Policy Statement provides that a bank's senior
management should determine the structure, responsibilities, and
controls for managing liquidity risk and for overseeing the liquidity
positions of the bank. These elements should be clearly documented in
liquidity risk policies and procedures. For institutions comprised of
multiple entities, such elements should be fully specified and
documented in policies for each material legal entity and subsidiary.
Senior management should be able to monitor liquidity risks for each
entity across the institution on an ongoing
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basis. Processes should be in place to ensure that the group's senior
management is actively monitoring and quickly responding to all
material developments and reporting to the boards of directors as
appropriate.
Section 11 of the Policy Statement provides that banks should have
documented strategies for managing liquidity risk and clear policies
and procedures for limiting and controlling risk exposures that
appropriately reflect the bank's risk tolerances. The strategies should
identify primary sources of funding for meeting daily operating cash
outflows, as well as seasonal and cyclical cash flow fluctuations.
Strategies should also address alternative responses to various adverse
business scenarios. Policies and procedures should provide for the
formulation of plans and courses of actions for dealing with potential
temporary, intermediate-term, and long-term liquidity disruptions.
Policies, procedures, and limits also should address liquidity
separately for individual currencies, legal entities, and business
lines, when appropriate and material, and should allow for legal,
regulatory, and operational limits for the transferability of liquidity
as well.
Section 12 of the Policy Statement states that a bank's policies
should clearly articulate a liquidity risk tolerance that is
appropriate for the business strategy of the bank considering its
complexity, business mix, liquidity risk profile, and its role in the
financial system. Policies should also contain provisions for
documenting and periodically reviewing assumptions used in liquidity
projections. Policy guidelines should employ both quantitative targets
and qualitative guidelines.
Section 13 of the Policy Statement provides that a bank's policies
should specify the nature and frequency of management reporting. Senior
managers should receive liquidity risk reports at least monthly, while
the board of directors should receive liquidity risk reports at least
quarterly. Management reporting may need to be more frequent, depending
on the complexity of the bank's business mix and liquidity risk
profile. Regardless of an institution's complexity, it should have the
ability to increase the frequency of reporting on short notice, if the
need arises. Liquidity risk reports should impart to senior management
and the board a clear understanding of the bank's liquidity risk
exposure, compliance with risk limits, consistency between management's
strategies and tactics, and consistency between these strategies and
the board's expressed risk tolerance.
Section 14 of the Policy Statement provides that banks should
consider liquidity costs, benefits, and risks in strategic planning and
budgeting processes. Significant business activities should be
evaluated for liquidity risk exposure as well as profitability. More
complex and sophisticated banks should incorporate liquidity costs,
benefits, and risks in the internal product pricing, performance
measurement, and new product approval process for all material business
lines, products, and activities. Incorporating the cost of liquidity
into these functions should align the risk-taking incentives of
individual business lines with the liquidity risk exposure their
activities create for the bank as a whole. The quantification and
attribution of liquidity risks should be explicit and transparent at
the line management level and should include consideration of how
liquidity would be affected under stressed conditions.
Section 15 of the Policy Statement provides that the process for
measuring liquidity risk should include robust methods for
comprehensively projecting cash flows arising from assets, liabilities,
and off-balance-sheet items over an appropriate set of time horizons.
Banks should ensure that the assumptions used are reasonable,
appropriate, and adequately documented. Banks should periodically
review and formally approve these assumptions.
Section 18 of the Policy Statement provides that banks should
conduct stress tests regularly for a variety of bank-specific and
market-wide events across multiple time horizons. The magnitude and
frequency of stress testing should be commensurate with the complexity
of the bank and the level of its risk exposures. Stress test outcomes
should be used to identify and quantify sources of potential liquidity
strain and to analyze possible impacts on the bank's cash flows,
liquidity position, profitability, and solvency. Stress tests should
also be used to ensure that current exposures are consistent with the
bank's established liquidity risk tolerance. The results of stress
tests should also play a key role in shaping the bank's contingency
planning.
Section 20 of the Policy Statement states that liquidity risk
reports should provide aggregate information with sufficient supporting
detail to enable management to assess the sensitivity of the bank to
changes in market conditions, its own financial performance, and other
important risk factors. Banks also should report on the use and
availability of government support, such as lending and guarantee
programs, and implications on liquidity positions, particularly since
these programs are generally temporary or reserved as a source for
contingent funding.
Section 23 of the Policy Statement provides that liquidity risk
management plans should describe assumptions regarding the
transferability of funds and collateral.
Section 24 of the Policy Statement provides that senior management
should develop and adopt an intraday liquidity strategy that allows the
bank to:
<bullet> Monitor and measure expected daily gross liquidity inflows
and outflows;
<bullet> Manage and mobilize collateral when necessary to obtain
intraday credit;
<bullet> Identify and prioritize time-specific and other critical
obligations in order to meet them when expected;
<bullet> Settle other less critical obligations as soon as
possible;
<bullet> Control credit to customers when necessary; and
<bullet> Ensure that liquidity planners understand the amounts of
collateral and liquidity needed to perform payment-system obligations
when assessing the organization's overall liquidity needs.
Section 25 of the Policy Statement provides that a bank should
establish a funding strategy that provides effective diversification in
the sources and tenor of funding.
Section 31 of the Policy Statement provides additional guidance
concerning the CFP, as described in section 6. The section provides
that all banks, regardless of size and complexity, should have a formal
CFP that clearly sets out the strategies for addressing liquidity
shortfalls in emergency situations. A CFP should delineate policies to
manage a range of stress environments, establish clear lines of
responsibility, and articulate clear implementation and escalation
procedures. It should be regularly tested and updated to ensure that it
is operationally sound. Sections 34, 35, and 37 of the Policy Statement
include additional guidance concerning CFPs.
Section 34 of the Policy Statement provides that CFPs should be
revised to reflect macroeconomic and bank-specific conditions.
Section 35 of the Policy Statement provides that the CFP should
identify stress events, assess levels of severity and timing, assess
funding sources and needs, identify potential funding sources,
establish liquidity event management processes, and establish a
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monitoring framework for contingent events.
Section 36 of the Policy Statement provides that smaller banks
should have plans in place for managing press inquiries that may arise
during a liquidity event.
Section 41 of the Policy Statement provides that a bank's internal
controls should address relevant elements of the risk management
process, including adherence to policies and procedures, the adequacy
of risk identification, risk measurement, reporting, and compliance
with applicable rules and regulations.
Section 42 of the Policy Statement provides that management should
ensure that an independent party regularly reviews and evaluates the
various components of the bank's liquidity risk management process.
These reviews should assess the extent to which the bank's liquidity
risk management complies with both supervisory guidance and industry
sound practices, taking into account the level of sophistication and
complexity of the bank's liquidity risk profile. Smaller, less-complex
banks may achieve independence by assigning this responsibility to the
audit function or other qualified individuals independent of the risk
management process.
The Addendum to the Policy Statement provides that banks should be
aware of the operational steps required to obtain funding from
contingency funding sources, including potential counterparties,
contact details, and availability of collateral. In addition, banks
should:
<bullet> Regularly test any contingency borrowing lines to ensure
the bank's staff are well versed in how to access them and that they
function as envisioned;
<bullet> Engage in planning that recognizes the operational
challenges involved in moving and posting collateral to access critical
funding in a timely fashion;
<bullet> Ensure that the CFPs recognize that during times of
stress, contingency lines may become unavailable and include a range of
contingency funding sources;
<bullet> Review and revise the CFPs periodically and more
frequently as market conditions and strategic initiatives change in
order to address evolving liquidity risks; and
<bullet> Incorporate the discount window as part of their
contingency funding arrangements. If the discount window is included in
the bank's CFP, establish and maintain operational readiness to borrow
from the discount window.
Estimated Burden
Estimated Frequency of Response: On occasion.
Estimated Number of Respondents: Liquidity Risk Management
Policies, Procedures, Assumptions, and Contingency Funding Plans--
Implementation of recordkeeping 8; Liquidity Risk Management Policies,
Procedures, Assumptions, and Contingency Funding Plans--Ongoing
recordkeeping 979.
Estimated Total Annual Burden: 31,648 hours.
Comments: On May 29, 2025, the OCC published a 60-day notice for
this information collection, (90 FR 22827). There were no comments
received.
Comments continue to be invited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the OCC, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimate of the burden of the
collection of information;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of the collection on respondents,
including through the use of automated collection techniques or other
forms of information technology; and
(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, Office of the Comptroller of the Currency.
[FR Doc. 2025-14133 Filed 7-25-25; 8:45 am]
BILLING CODE 4810-33-P
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