81 FR 33672 - Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB

FEDERAL RESERVE SYSTEM

Federal Register Volume 81, Issue 103 (May 27, 2016)

Notice is hereby given of the final approval of a proposed information collection by the Board of Governors of the Federal Reserve System (Board) under OMB delegated authority. Board-approved collections of information are incorporated into the official OMB inventory of currently approved collections of information. Copies of the Paperwork Reduction Act Submission, supporting statements and approved collection of information instrument(s) are placed into OMB's public docket files. The Federal Reserve may not conduct or sponsor, and the respondent is not required to respond to, an information collection that has been extended, revised, or implemented on or after October 1, 1995, unless it displays a currently valid OMB control number.

[Federal Register Volume 81, Number 103 (Friday, May 27, 2016)]
[Notices]
[Pages 33672-33674]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-12604]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: Notice is hereby given of the final approval of a proposed 
information collection by the Board of Governors of the Federal Reserve 
System (Board) under OMB delegated authority. Board-approved 
collections of information are incorporated into the official OMB 
inventory of currently approved collections of information. Copies of 
the Paperwork Reduction Act Submission, supporting statements and 
approved collection of information instrument(s) are placed into OMB's 
public docket files. The Federal Reserve may not conduct or sponsor, 
and the respondent is not required to respond to, an information 
collection that has been extended, revised, or implemented on or after 
October 1, 1995, unless it displays a currently valid OMB control 
number.

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829. Telecommunications Device for the Deaf (TDD) users may 
contact (202) 263-4869, Board of Governors of the Federal Reserve 
System, Washington, DC 20551.
    OMB Desk Officer--Shagufta Ahmed--Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 10235, 725 17th Street NW., Washington, DC 20503.

Final Approval Under OMB Delegated Authority of The Extension For Three 
Years, Without Revision, of the Following Reports

    1. Report title: Written Security Program for State Member Banks.
    Agency form number: FR 4198.
    OMB control number: 7100-0326.
    Frequency: On occasion.
    Reporters: Bank holding companies, savings and loan holding 
companies, state member banks, state-licensed branches and agencies of 
foreign banks

[[Page 33673]]

(other than insured branches), and corporations organized or operating 
under sections 25 or 25A of the Federal Reserve Act (agreement 
corporations and Edge corporations).
    Estimated annual reporting hours: Section 14 strategic planning and 
budgeting process: Large institutions: 20,160 hours; mid-sized 
institutions: 17,520 hours; small institutions: 428,080 hours. Section 
20 liquidity risk reporters: 261,696 hours.
    Estimated average hours per response: Section 14 strategic planning 
and budgeting process: Large institutions: 720 hours; mid-sized 
institutions: 240 hours; small institutions: 80 hours. Section 20 
liquidity risk reporters: 4 hours.
    Number of respondents: Section 14 strategic planning and budgeting 
process: Large institutions: 28; mid-sized institutions: 73; small 
institutions: 5,351. Section 20 liquidity risk reporters: 5,452.
    General description of report: The Board's Legal Division has 
determined that this information collection is mandatory based on the 
following relevant statutory provisions.
     Section 9(6) of the Federal Reserve Act (12 U.S.C. 324) 
requires state member banks to make reports of condition to their 
supervising Reserve Bank in such form and containing such information 
as the Board may require.
     Section 5(c) of the Bank Holding Company Act (12 U.S.C. 
1844(c)) authorizes the Board to require a BHC and any subsidiary to 
submit reports to keep the Board informed as to its financial 
condition, [and] systems for monitoring and controlling financial and 
operating risk.
     Section 7(c)(2) of the International Banking Act of 1978 
(12 U.S.C. 3105(c)(2) requires branches and agencies of foreign banking 
organizations to file reports of condition with the Federal Reserve to 
the same extent and in the same manner as if the branch or agency were 
a state member bank.
     Section 25A of the Federal Reserve Act (12 U.S.C. 625) 
requires Edge and agreement corporations to make reports to the Board 
at such time and in such form as it may require.
     Section 10(b) of the Home Owners' Loan Act requires an 
SLHC to file reports on the operation of the SLHC and any subsidiary as 
the Board may require and in such form and for such periods as the 
Board may require.
    Because the records required by the Guidance are maintained at the 
institution, issues of confidentiality are not expected to arise. 
Should the documents be obtained by the Federal Reserve System during 
the course of an examination, they would be exempt from disclosure 
under exemption 8 of FOIA, 5 U.S.C. 552(b)(8). In addition, some or all 
of the information may be ``commercial or financial'' information 
protected from disclosure under exemption 4 of FOIA, under the 
standards set forth in National Parks & Conservation Ass'n v. Morton, 
498 F.2d 765 (D.C. Cir. 1974).
    Abstract: On March 22, 2010, the Office of the Comptroller of the 
Currency (OCC), the Office of Thrift Supervision (OTS), the Federal 
Reserve, and the Federal Deposit Insurance Corporation (FDIC), and the 
National Credit Union Administration (NCUA) (the agencies) published a 
joint final notice in the Federal Register implementing guidance titled 
``Interagency Policy Statement on Funding and Liquidity Risk 
Management'' (the ``Guidance''), effective May 21, 2010.\1\
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    \1\ 75 FR 13656 (March 22, 2010).
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    The Guidance summarizes the principles of sound liquidity risk 
management that the agencies have issued in the past and, where 
appropriate, brings them into conformance with the ``Principles for 
Sound Liquidity Risk Management and Supervision'' issued by the Basel 
Committee on Banking Supervision (BCBS) in September 2008. While the 
BCBS liquidity principles primarily focuses on large internationally 
active financial institutions, the Guidance emphasizes supervisory 
expectations for all domestic financial institutions including banks, 
thrifts and credit unions.
    The agencies \2\ have identified two sections of the Guidance that 
fall under the definition of an information collection. Section 14 
states that institutions should consider liquidity costs, benefits, and 
risks in strategic planning and budgeting processes. Section 20 
requires that liquidity risk reports provide aggregate information with 
sufficient supporting detail to enable management to assess the 
sensitivity of the institution to changes in market conditions, its own 
financial performance, and other important risk factors.
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    \2\ As part of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, the OTS was abolished and its functions and powers 
were transferred to the OCC, the FDIC, and the Federal Reserve.
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    Current Actions: On March 15, 2016, the Board published a notice in 
the Federal Register (81 FR 13791) requesting public comment for 60 
days on the proposal to extend the FR 4198 for three years without 
revision. The comment period for the notice expired on May 16, 2016. 
The Federal Reserve did not receive any comments, and the information 
collection will be extended as proposed.
    2. Report title: Recordkeeping Provisions Associated with Guidance 
on Leveraged Lending.
    Agency form number: FR 4203.
    OMB control number: 7100-0354.
    Frequency: On occasion.
    Reporters: All institutions that originate or participate in 
leverage lending.
    Estimated annual reporting hours: 29,422 hours.
    Estimated average hours per response: 754.4 hours.
    Number of respondents: 39.
    General description of report: The Board's Legal Division has 
determined that all financial institutions supervised by the Board and 
substantively engaged in leveraged lending activities are subject to 
the FR 4203:
     Regarding state member banks, the information collection 
is authorized by Section 11(a)(2) of the Federal Reserve Act, 12 U.S.C. 
248(a)(2), which authorizes the Board to require any depository 
institution to make such reports of its assets and liabilities as the 
Board may determine to be necessary or desirable to enable the Board to 
discharge its responsibilities to monitor and control monetary and 
credit aggregates.
     With respect to bank holding companies, Section 5(c) of 
the Bank Holding Company Act, 12 U.S.C. 1844(c), authorizes the Board 
to require a bank holding company and any subsidiary ``to keep the 
Board informed as to--(i) its financial condition, [and] systems for 
monitoring and controlling financial and operating risks . . . .''
     With respect to savings and loan holding companies, 12 
U.S.C. 1467a(b)(3), authorizes the Board to ``maintain such books and 
records as may be prescribed by the Board.''
     Regarding branches and agencies of foreign banking 
organizations, Section 7(c)(2) of the International Banking Act of 
1978, 12 U.S.C. 3105(c)(2), subjects such entities to the requirements 
of section 11(a) of the Federal Reserve Act (12 U.S.C. 248(a)) ``to the 
same extent and in the same manner as if the branch or agency were a 
state member bank.''
     Under Section 25 of the Federal Reserve Act, 12 U.S.C. 
602, member banks are required to furnish to the Board ``information 
concerning the condition of'' Edge and Agreement Corporations in which 
they invest. More generally with respect to Edge and Agreement 
Corporations, under Section 25A of the Federal Reserve Act, 12

[[Page 33674]]

U.S.C. 611a, the Federal Reserve may ``issue rules and regulations'' 
governing such entities ``consistent with and in furtherance of the 
purposes'' of that subchapter.
    Because the information collection is called for in guidance and 
not in a statute or regulation, it is considered voluntary.
    Because the information collected by the Proposed Guidance is 
maintained at the institutions, issues of confidentiality would not 
normally arise. Should the information be obtained by the Board in the 
course of an examination, it would be exempt from disclosure under 
exemption 8 of Freedom of Information Act (FOIA), 5 U.S.C. 552(b)(8). 
In addition, some or all of the information may be confidential 
commercial or financial information protected from disclosure under 
exemption 4 of FOIA, under the standards set forth in National Parks & 
Conservation Ass'n v. Morton, 498 F.2d 765 (D.C. Cir. 1974).
    Abstract: The interagency guidance outlines high-level principles 
related to safe and sound leveraged lending activities, including 
underwriting considerations, assessing and documenting enterprise 
value, risk management expectations for credits awaiting distribution, 
stress testing expectations and portfolio management, and risk 
management expectations. This guidance applies to all financial 
institutions substantively engaged in leveraged lending activities 
supervised by the Federal Reserve, FDIC, and OCC (the Agencies).
    The Agencies identified certain aspects of the proposed guidance 
that may constitute a collection of information. In particular, these 
aspects are the provisions that state a banking organization should (a) 
have underwriting policies for leveraged lending, including stress 
testing procedures for leveraged credits; (b) have risk management 
policies, including stress testing procedures for pipeline exposures; 
and (c) have policies and procedures for incorporating the results of 
leveraged credit and pipeline stress tests into the firm's overall 
stress testing framework.
    Although the guidance is applicable to all institutions that 
originate or participate in leverage lending, due to the large 
exposures created by these types of loans, these credits are most 
likely originated primarily by larger institutions.
    Current Actions: On March 15, 2016, the Board published a notice in 
the Federal Register (81 FR 13791) requesting public comment for 60 
days on the proposal to extend the FR 4203 for three years without 
revision. The comment period for the notice expired on May 16, 2016. 
The Federal Reserve did not receive any comments, and the information 
collection will be extended as proposed.
    3. Report title: Reporting, Recordkeeping, and Disclosure 
Requirements Associated with Regulation NN.
    Agency form number: Reg NN.
    OMB control number: 7100-0353.
    Frequency: On occasion.
    Reporters: Banking organizations seeking to engage in off-exchange 
transactions in foreign currency with retail customers.
    Estimated annual reporting hours: 1,972 hours.
    Estimated average hours per response: Reporting, 16 hours; 
Recordkeeping, 183 hours; Disclosure, 787 hours.
    Number of respondents: 2.
    General description of report: This information collection is 
required by the Commodity Exchange Act (7 U.S.C. Section 2(c)(2)(E)), 
the Federal Reserve Act (12 U.S.C. Sections 248 and 321-338), the 
Federal Deposit Insurance Act (12 U.S.C. Section 1818), the 
International Banking Act (12 U.S.C. Section 3108), and Regulation NN 
(12 CFR part 240). The information collection is mandatory. The 
reported data are regarded as confidential under the Freedom of 
Information Act (5 U.S.C. Section 552(b)(4)).
    Abstract: The reporting requirements associated with Regulation NN 
are found in section 240.4; the recordkeeping requirements are found in 
sections 240.7, 240.9, and 240.13(a); and the disclosure requirements 
are found in sections 240.5, 240.6, 240.10, 240.13b-d, 240.15, and 
240.16. These requirements permit banking organizations under the 
Federal Reserve's supervision to engage in off-exchange transactions in 
foreign currency with retail customers and to describe various 
requirements with which banking organizations must comply to conduct 
such transactions.
    Current Actions: On March 17, 2016, the Board published a notice in 
the Federal Register (81 FR 14444) requesting public comment for 60 
days on the proposal to extend the FR 4203 for three years without 
revision. The comment period for the notice expired on May 16, 2016. 
The Federal Reserve did not receive any comments, and the information 
collection will be extended as proposed.

    Board of Governors of the Federal Reserve System, May 24, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-12604 Filed 5-26-16; 8:45 am]
 BILLING CODE 6210-01-P