81 FR 24940 - Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Leveraged Lending

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency

Federal Register Volume 81, Issue 81 (April 27, 2016)

Page Range		24940-24941
FR Document		2016-09878

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 a continuing information collection, as required by the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. chapter 35). 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 the renewal of its information collection titled, ``Leveraged Lending.'' The OCC also is giving notice that it has sent the collection to OMB for review.

Federal Register, Volume 81 Issue 81 (Wednesday, April 27, 2016)

[Federal Register Volume 81, Number 81 (Wednesday, April 27, 2016)]
[Notices]
[Pages 24940-24941]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-09878]


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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; Leveraged Lending

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 a continuing 
information collection, as required by the Paperwork Reduction Act of 
1995 (PRA) (44 U.S.C. chapter 35).
    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 the renewal of its 
information collection titled, ``Leveraged Lending.'' The OCC also is 
giving notice that it has sent the collection to OMB for review.

DATES: Comments must be received by May 27, 2016.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by 
email, if possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-0315, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to 
(571) 465-4326 or by electronic mail to [email protected]. You may 
personally inspect and photocopy comments at the OCC, 400 7th Street 
SW., Washington, DC 20219. For security reasons, the OCC requires that 
visitors make an appointment to inspect comments. You may do so by 
calling (202) 649-6700 or, for persons who are deaf or hard of hearing, 
TTY, (202) 649-5597. Upon arrival, visitors will be required to present 
valid government-issued photo identification and submit to security 
screening in order to inspect and photocopy comments.
    All comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not

[[Page 24941]]

include any information in your comment or supporting materials that 
you consider confidential or inappropriate for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0315, U.S. Office of Management and Budget, 725 17th 
Street NW., #10235, Washington, DC 20503, or by email to: oira 
[email protected].

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer, 
(202) 649-5490 or, for persons who are deaf or hard of hearing, TTY, 
(202) 649-5597, Legislative and Regulatory Activities Division, Office 
of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 
20219.

SUPPLEMENTARY INFORMATION: The OCC is proposing to extend OMB approval 
of the following information collection:
    Title: Leveraged Lending.
    OMB Control No.: 1557-0315.
    Description: On March 22, 2013, the agencies \1\ issued guidance 
stating that they expected financial institutions \2\ to properly 
evaluate and monitor underwritten credit risks in leveraged loans, to 
understand the effect of changes in borrowers' business valuations on 
credit portfolio quality, and to assess the sensitivity of future 
credit losses to these changes in business valuations.\3\ In 
underwriting such credits, financial institutions should ensure that 
borrowers are able to repay credits when due and that borrowers have 
sustainable capital structures, including bank borrowings and other 
debt, to support their continued operations through economic cycles. 
Financial institutions also should be able to demonstrate they 
understand the risks and the potential impact of stressful events and 
circumstances on borrowers' financial condition.
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    \1\ OCC, Board of Governors of the Federal Reserve System, and 
Federal Deposit Insurance Corporation.
    \2\ For the OCC, the term ``financial institution'' or 
``institution'' includes national banks, Federal savings 
associations, and Federal branches and agencies supervised by the 
OCC.
    \3\ 78 FR 17766 (March 22, 2013).
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    The final guidance stated that financial institutions should have: 
(i) Underwriting policies for leveraged lending, including stress-
testing procedures for leveraged credits; (ii) risk management 
policies, including stress-testing procedures for pipeline exposures; 
and, (iii) policies and procedures for incorporating the results of 
leveraged credit and pipeline stress tests into the firm's overall 
stress-testing framework.
    Respondents are financial institutions with leveraged lending 
activities as defined in the guidance.
    Title: Leveraged Lending.
    OMB Control No.: 1557-0315.
    Frequency of Response: Annual.
    Affected Public: Financial institutions with leveraged lending.
    Burden Estimates:
    Estimated number of respondents: 29.
    Estimated total annual burden: 39,162 hours to build; 49,462 hours 
for ongoing use.
    Total estimated annual burden: 88,624 hours.
    Comments: On February 17, 2016, the OCC published a notice for 60 
days of comment regarding the collection, 81 FR 8126. The OCC received 
one comment on the 60-day notice from an individual. The commenter 
questioned the utility and benefit of the information collection 
aspects of the guidance compared with the burden. Specifically, the 
commenter stated the information collections on stress-testing for 
leveraged lending, including for pipeline exposures, is already 
contained in other OCC or interagency guidance. The commenter also 
suggested that the OCC should define a leveraged loan and clarify the 
limits of acceptable leveraged lending risk.
    The OCC believes that the information collections provide utility 
and benefit, as they can allow banks to monitor more closely their 
leveraged lending activity. Increased monitoring can improve a bank's 
response to potential deteriorations in the leveraged lending 
portfolio. Regarding burden, the leveraged lending information 
collections are voluntary. If a bank decides that the burdens of 
certain collections would outweigh the costs, then the bank can choose 
not to implement those collections. While the OCC has issued other 
guidance documents on stress-testing, either standalone or on an 
interagency basis, those documents provide higher-level guidance for 
stress-testing of all assets and liabilities. The leveraged lending 
guidance provides additional considerations for stress-testing 
specifically related to leveraged lending, which is not present in 
other OCC or interagency guidance.
    During the initial issuance of the leveraged lending guidance, the 
OCC considered whether to establish a single definition of leveraged 
loan or leveraged lending. However, the agencies concluded that 
leveraged lending is not homogenous across industries or banks, and did 
not believe that a ``one-size-fits-all'' definition was appropriate. 
The OCC continues to believe that those banks following the leveraged 
lending guidance should have this flexibility in setting the parameters 
of their leveraged lending and risk management programs.
    Comments continue to be requested on:
    (a) Whether the information collections are necessary for the 
proper performance of the OCC's functions, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's estimates of the burden of the 
information collections, including the validity of the methodology and 
assumptions used;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    (e) Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: April 21, 2016.
Mary Hoyle Gottlieb,
Regulatory Specialist, Office of the Comptroller of the Currency.
[FR Doc. 2016-09878 Filed 4-26-16; 8:45 am]
 BILLING CODE 4810-33-P

24940 Federal Register / Vol. 81, No. 81 / Wednesday, April 27, 2016 / Notices

Estimated Number of Respondents: 35 document corrects the date cited for the DEPARTMENT OF THE TREASURY
national banks and Federal savings initial reporting of the Legal Entity
associations. Identifier by advanced approaches Office of the Comptroller of the
Estimated Annual Burden: 1,827 banking organizations from March 31, Currency
hours. 2016, to September 30, 2016. This
Frequency of Response: On occasion. notice also extends the comment due Agency Information Collection
Comments: The comments submitted date. Activities: Information Collection
in response to this notice will be Renewal; Submission for OMB Review;
DATES: The comment period for the Leveraged Lending
summarized and included in the request
notice published April 18, 2016 (81 FR
for OMB approval. All comments will AGENCY: Office of the Comptroller of the
22702) is extended. Comments must be
become a matter of public record. Currency (OCC), Treasury.
submitted on or before June 27, 2016.
Comments are invited on:
FOR FURTHER INFORMATION CONTACT: For ACTION: Notice and request for comment.
(a) Whether the collection of
information is necessary for the proper further information about the proposed
revisions to regulatory reporting SUMMARY: The OCC, as part of its
performance of the functions of the continuing effort to reduce paperwork
OCC, including whether the information requirements discussed in this notice,
please contact any of the agency and respondent burden, invites the
has practical utility; general public and other Federal
(b) The accuracy of the OCC’s clearance officers whose names appear
below. In addition, copies of the agencies to take this opportunity to
estimate of the information collection comment on a continuing information
burden; proposed revised FFIEC 101 form and
instructions can be obtained at the collection, as required by the Paperwork
(c) Ways to enhance the quality, Reduction Act of 1995 (PRA) (44 U.S.C.
utility, and clarity of the information to FFIEC’s Web site (http://www.ffiec.gov/
ffiec_report_forms.htm). chapter 35).
be collected; In accordance with the requirements
(d) Ways to minimize the burden of OCC: Shaquita Merritt, OCC Clearance
Officer, (202) 649–5490, or for persons of the PRA, the OCC may not conduct
the collection on respondents, including or sponsor, and the respondent is not
through the use of automated collection who are deaf or hard of hearing, TTY,
(202) 649–5597, Legislative and required to respond to, an information
techniques or other forms of information collection unless it displays a currently
technology; and Regulatory Activities Division, Office of
the Comptroller of the Currency, 400 7th valid Office of Management and Budget
(e) Estimates of capital or start-up (OMB) control number.
costs and costs of operation, Street SW., Washington, DC 20219.
Board: Nuha Elmaghrabi, Federal The OCC is soliciting comment
maintenance, and purchase of services concerning the renewal of its
to provide information. Reserve Board Clearance Officer, (202)
452–3829, Office of the Chief Data information collection titled,
Dated: April 21, 2016. Officer, Board of Governors of the ‘‘Leveraged Lending.’’ The OCC also is
Mary Hoyle Gottlieb, Federal Reserve System, Washington, giving notice that it has sent the
Regulatory Specialist, Legislative and DC 20551. Telecommunications Device collection to OMB for review.
Regulatory Activities Division. for the Deaf (TDD) users may contact DATES: Comments must be received by
[FR Doc. 2016–09730 Filed 4–26–16; 8:45 am] (202) 263–4869, Board of Governors of May 27, 2016.
BILLING CODE 4810–33–P the Federal Reserve System, ADDRESSES: Because paper mail in the
Washington, DC 20551. Washington, DC area and at the OCC is
FDIC: Gary A. Kuiper, Counsel, (202) subject to delay, commenters are
DEPARTMENT OF THE TREASURY 898–3877, or Manuel E. Cabeza, encouraged to submit comments by
Counsel, (202) 898–3767, Federal email, if possible. Comments may be
Office of the Comptroller of the Deposit Insurance Corporation, 550 17th sent to: Legislative and Regulatory
Currency Street NW., Washington, DC 20429. Activities Division, Office of the
Comptroller of the Currency, Attention:
FEDERAL RESERVE SYSTEM Correction 1557–0315, 400 7th Street SW., Suite
In the Federal Register of April 18, 3E–218, Mail Stop 9W–11, Washington,
FEDERAL DEPOSIT INSURANCE 2016, in FR Doc. 2016–08892, on page DC 20219. In addition, comments may
CORPORATION 22706, at the 29th line of the third be sent by fax to (571) 465–4326 or by
column, remove ‘‘March 31, 2016’’ and electronic mail to prainfo@occ.treas.gov.
Proposed Agency Information add in its place ‘‘September 30, 2016’’. You may personally inspect and
Collection Activities; Comment
Dated: April 20, 2016. photocopy comments at the OCC, 400
Request; Correction
Stuart Feldstein, 7th Street SW., Washington, DC 20219.
AGENCY: Office of the Comptroller of the For security reasons, the OCC requires
Director, Legislative and Regulatory Activities
Currency (OCC), Treasury; Board of Division, Office of the Comptroller of the that visitors make an appointment to
Governors of the Federal Reserve Currency. inspect comments. You may do so by
System (Board); and Federal Deposit Board of Governors of the Federal Reserve calling (202) 649–6700 or, for persons
Insurance Corporation (FDIC). System, April 20, 2016. who are deaf or hard of hearing, TTY,
ACTION: Joint notice and request for Robert deV. Frierson, (202) 649–5597. Upon arrival, visitors
will be required to present valid
asabaliauskas on DSK3SPTVN1PROD with NOTICES

comment; correction. Secretary of the Board.
government-issued photo identification
Dated at Washington, DC, this 19th day of
SUMMARY: The OCC, the Board, and the and submit to security screening in
April, 2016.
FDIC (the agencies) published a notice order to inspect and photocopy
in the Federal Register, 81 FR 22702 Federal Deposit Insurance Corporation.
comments.
(April 18, 2016), concerning Regulatory Robert E. Feldman, All comments received, including
Capital Reporting for Institutions Executive Secretary. attachments and other supporting
Subject to the Advanced Capital [FR Doc. 2016–09871 Filed 4–26–16; 8:45 am] materials, are part of the public record
Adequacy Framework (FFIEC 101). This BILLING CODE 4810–33–6210–01–6714–01–P and subject to public disclosure. Do not

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Federal Register / Vol. 81, No. 81 / Wednesday, April 27, 2016 / Notices 24941

include any information in your Respondents are financial institutions guidance should have this flexibility in
comment or supporting materials that with leveraged lending activities as setting the parameters of their leveraged
you consider confidential or defined in the guidance. lending and risk management programs.
inappropriate for public disclosure. Title: Leveraged Lending. Comments continue to be requested
Additionally, please send a copy of OMB Control No.: 1557–0315. on:
your comments by mail to: OCC Desk Frequency of Response: Annual. (a) Whether the information
Officer, 1557–0315, U.S. Office of Affected Public: Financial institutions collections are necessary for the proper
Management and Budget, 725 17th with leveraged lending. performance of the OCC’s functions,
Burden Estimates: including whether the information has
Street NW., #10235, Washington, DC Estimated number of respondents: 29.
20503, or by email to: oira submission@ practical utility;
Estimated total annual burden: 39,162 (b) The accuracy of the OCC’s
omb.eop.gov. hours to build; 49,462 hours for ongoing estimates of the burden of the
FOR FURTHER INFORMATION CONTACT: use. information collections, including the
Shaquita Merritt, Clearance Officer, Total estimated annual burden: validity of the methodology and
(202) 649–5490 or, for persons who are 88,624 hours. assumptions used;
deaf or hard of hearing, TTY, (202) 649– Comments: On February 17, 2016, the (c) Ways to enhance the quality,
5597, Legislative and Regulatory OCC published a notice for 60 days of utility, and clarity of the information to
Activities Division, Office of the comment regarding the collection, 81 FR be collected;
Comptroller of the Currency, 400 7th 8126. The OCC received one comment (d) Ways to minimize the burden of
Street SW., Washington, DC 20219. on the 60-day notice from an individual. information collections on respondents,
SUPPLEMENTARY INFORMATION: The OCC The commenter questioned the utility including through the use of automated
is proposing to extend OMB approval of and benefit of the information collection collection techniques or other forms of
the following information collection: aspects of the guidance compared with information technology; and
the burden. Specifically, the commenter (e) Estimates of capital or startup costs
Title: Leveraged Lending.
stated the information collections on and costs of operation, maintenance,
OMB Control No.: 1557–0315. stress-testing for leveraged lending, and purchase of services to provide
Description: On March 22, 2013, the including for pipeline exposures, is information.
agencies 1 issued guidance stating that already contained in other OCC or
they expected financial institutions 2 to Dated: April 21, 2016.
interagency guidance. The commenter
properly evaluate and monitor Mary Hoyle Gottlieb,
also suggested that the OCC should
underwritten credit risks in leveraged define a leveraged loan and clarify the Regulatory Specialist, Office of the
loans, to understand the effect of Comptroller of the Currency.
limits of acceptable leveraged lending
changes in borrowers’ business risk. [FR Doc. 2016–09878 Filed 4–26–16; 8:45 am]
valuations on credit portfolio quality, The OCC believes that the information BILLING CODE 4810–33–P
and to assess the sensitivity of future collections provide utility and benefit,
credit losses to these changes in as they can allow banks to monitor more
business valuations.3 In underwriting closely their leveraged lending activity. DEPARTMENT OF THE TREASURY
such credits, financial institutions Increased monitoring can improve a
should ensure that borrowers are able to Internal Revenue Service
bank’s response to potential
repay credits when due and that deteriorations in the leveraged lending
borrowers have sustainable capital Open Meeting of the Taxpayer
portfolio. Regarding burden, the Advocacy Panel Taxpayer
structures, including bank borrowings leveraged lending information
and other debt, to support their Communications Project Committee
collections are voluntary. If a bank
continued operations through economic decides that the burdens of certain AGENCY: Internal Revenue Service (IRS),
cycles. Financial institutions also collections would outweigh the costs, Treasury.
should be able to demonstrate they then the bank can choose not to ACTION: Notice of meeting; correction.
understand the risks and the potential implement those collections. While the
impact of stressful events and OCC has issued other guidance SUMMARY: In the Federal Register notice
circumstances on borrowers’ financial documents on stress-testing, either that was originally published on April
condition. standalone or on an interagency basis, 14, 2016, (Volume 81, Number 72, Page
The final guidance stated that those documents provide higher-level 22166) the time was written as 3:00 p.m.
financial institutions should have: (i) guidance for stress-testing of all assets EST instead of 2:00 p.m. EST. The
Underwriting policies for leveraged and liabilities. The leveraged lending meeting time is: 2:00 p.m. EST,
lending, including stress-testing guidance provides additional Thursday, May 19, 2016.
procedures for leveraged credits; (ii) risk considerations for stress-testing DATES: The meeting will be held
management policies, including stress- specifically related to leveraged lending, Thursday, May 19, 2016.
testing procedures for pipeline which is not present in other OCC or FOR FURTHER INFORMATION CONTACT:
exposures; and, (iii) policies and interagency guidance. Antoinette Ross at 1–888–912–1227 or
procedures for incorporating the results During the initial issuance of the (202) 317–4110.
of leveraged credit and pipeline stress leveraged lending guidance, the OCC SUPPLEMENTARY INFORMATION: Notice is
tests into the firm’s overall stress-testing considered whether to establish a single hereby given pursuant to Section
asabaliauskas on DSK3SPTVN1PROD with NOTICES

framework. definition of leveraged loan or leveraged 10(a)(2) of the Federal Advisory
lending. However, the agencies Committee Act, 5 U.S.C. App. (1988)
1 OCC, Board of Governors of the Federal Reserve concluded that leveraged lending is not that an open meeting of the Taxpayer
System, and Federal Deposit Insurance Corporation. homogenous across industries or banks, Advocacy Panel Taxpayer
2 For the OCC, the term ‘‘financial institution’’ or
and did not believe that a ‘‘one-size-fits- Communications Project Committee will
‘‘institution’’ includes national banks, Federal
savings associations, and Federal branches and all’’ definition was appropriate. The be held Thursday, May 19, 2016, at 2:00
agencies supervised by the OCC. OCC continues to believe that those p.m. Eastern Time via teleconference.
3 78 FR 17766 (March 22, 2013). banks following the leveraged lending The public is invited to make oral

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Document Created: 2018-02-07 13:56:02
Document Modified: 2018-02-07 13:56:02

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice and request for comment.
Dates		Comments must be received by May 27, 2016.
Contact		Shaquita Merritt, Clearance Officer, (202) 649-5490 or, for persons who are deaf or hard of hearing, TTY, (202) 649-5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219.
FR Citation		81 FR 24940

81 FR 24940 - Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Leveraged Lending

DEPARTMENT OF THE TREASURYOffice of the Comptroller of the Currency

Federal Register Volume 81, Issue 81 (April 27, 2016)

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency