82_FR_17730 82 FR 17661 - Proposed Agency Information Collection Activities; Comment Request

82 FR 17661 - Proposed Agency Information Collection Activities; Comment Request

FEDERAL RESERVE SYSTEM

Federal Register Volume 82, Issue 69 (April 12, 2017)

Page Range17661-17663
FR Document2017-07408

The Board of Governors of the Federal Reserve System (Board or Federal Reserve) invites comment on a proposal to extend for three years, with revision, the voluntary Survey of Terms of Lending (STL; FR 2028; OMB No. 7100-0061).

Federal Register, Volume 82 Issue 69 (Wednesday, April 12, 2017)
[Federal Register Volume 82, Number 69 (Wednesday, April 12, 2017)]
[Notices]
[Pages 17661-17663]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07408]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice, request for comment.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board or 
Federal Reserve) invites comment on a proposal to extend for three 
years, with revision, the voluntary Survey of Terms of Lending (STL; FR 
2028; OMB No. 7100-0061).

DATES: Comments must be submitted on or before June 12, 2017.

ADDRESSES: You may submit comments, identified by FR 2028A, FR 2028B, 
FR 2028S, or FR 2028D, by any of the following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: regs.comments@federalreserve.gov. Include OMB 
number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Robert deV. Frierson, Secretary, Board of Governors 
of the Federal Reserve System, 20th Street and Constitution Avenue NW., 
Washington, DC 20551.
    All public comments are available from the Board's Web site at 
http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room 
3515, 1801 K Street (between 18th and 19th Streets NW.) Washington, DC 
20006 between 9:00 a.m. and 5:00 p.m. on weekdays.
    Additionally, commenters may send a copy of their comments to the 
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 or by 
fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission, 
including the proposed reporting form and instructions, supporting 
statement, and other documentation will be placed into OMB's public 
docket files, once approved. These documents will also be made 
available on the Federal Reserve Board's public Web site at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears below.
    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.

SUPPLEMENTARY INFORMATION: On June 15, 1984, the Office of Management 
and Budget (OMB) delegated to the Board authority under the Paperwork 
Reduction Act (PRA) to approve of and assign OMB control numbers to 
collection of information requests and requirements conducted or 
sponsored by the Board. In exercising this delegated authority, the 
Board is directed to take every reasonable step to solicit comment. In 
determining whether to approve a collection of information, the Board 
will consider all comments received from the public and other agencies.
    Request for comment on information collection proposal.
    The Board invites public comment on the following information 
collection, which is being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Federal Reserve's functions; including 
whether the information has practical utility;
    b. The accuracy of the Federal Reserve's estimate of the burden of 
the proposed 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;
    d. Ways to minimize the burden of information collection on 
respondents,

[[Page 17662]]

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.
    At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the Federal 
Reserve should modify the proposed revisions prior to giving final 
approval.
    Proposal to approve under OMB delegated authority the extension for 
three years, with revision, of the following report:
    Report Title: Survey of Small Business and Farm Lending.
    Agency Form Number: FR 2028B, FR 2028D, and FR 2028S.
    OMB Control Number: 7100-0061.
    Frequency: Quarterly.
    Respondents: Commercial banks.
    Estimated Number of Respondents: FR 2028B-250; FR 2028D-398; and FR 
2028S-250.
    Estimated Average Hours per Response: FR 2028B-1.4 hours; FR 2028D-
1.5 hours; FR 2028D (First Time only)-1.5 hours; and FR 2028S-0.1 
hours.
    Estimated Annual Burden Hours: 4,485 hours.
    General Description of Report: The STL collects unique information 
concerning price and certain nonprice terms of loans made to businesses 
and farmers during the first full business week of the mid-month of 
each quarter (February, May, August, and November). The FR 2028A and FR 
2028B collect detailed data on individual loans made during the survey 
week, and the FR 2028S collects the prime interest rate for each day of 
the survey from both FR 2028A and FR 2028B respondents. From these 
sample STL data, estimates of the terms of business loans and farm 
loans extended during the reporting week are constructed. The aggregate 
estimates for business loans are published in the quarterly E.2 
statistical release, Survey of Terms of Business Lending, and aggregate 
estimates for farm loans are published in the E.15 statistical release, 
Agricultural Finance Databook.
    Proposed revisions: The Federal Reserve proposes to (1) discontinue 
the FR 2028A, (2) create a new Small Business Lending Survey (FR 2028D) 
that would provide focused and enhanced information on small business 
lending including rates, terms, credit availability, and reasons for 
their changes (in contrast to the individual loan data collected on the 
FR 2028A, the FR 2028D would collect quarterly average quantitative 
data on terms of small business loans and qualitative information on 
changes and the reasons for changes in the terms of lending), and (3) 
the STL would be renamed the Survey of Small Business and Farm Lending 
(SSBFL) to more accurately describe the data collection. No changes are 
proposed to the FR 2028B and FR 2028S. The proposed final data 
collection for the FR 2028A would be for the May 2017 survey week, and 
the proposed first data collection for the FR 2028D would be in 
November 2017 for the September 30, 2017, as of date.

Survey of Terms of Business Lending (FR 2028A)

    The survey data are used to assess conditions and to track 
developments in business credit markets. For instance, during the 
credit market turmoil that began in the second half of 2007 and early 
2008, STL data showed a smaller increase in the spread of loan rates 
over banks' cost of funds than other indicators of business loan 
pricing suggested. Moreover, information about the date on which 
commitments were finalized or renewed has been important in 
understanding how loan rates evolved during the crisis, as it allowed 
the Federal Reserve to study the terms on new loan commitments 
separately from commitments written prior to the crisis. More broadly, 
the survey data have been useful for monitoring the changing role of 
the prime rate as a benchmark for business loan pricing and of shifts 
in the mix of fixed-rate and variable-rate lending as financial markets 
have changed. The STL microdata are not available to researchers 
outside the Federal Reserve, but have been used in a number of research 
papers.
    The FR 2028A data have limitations for assessing conditions and 
analyzing developments in nonfarm business credit markets. For example, 
it was noted in the memorandum for renewing the STL in June 2015 that 
``The STL is an important source of individual loan data used by those 
concerned with lending to small businesses, for which banks are one of 
the primary sources of credit.'' \1\ However, the data were 
insufficient for addressing questions about small business lending 
during the financial crisis, ensuing recession, or economic recovery. 
For example, the data could not answer questions on whether changes in 
the flow of credit to small businesses were due to supply issues, such 
as changes in bank lending standards or terms, or demand issues, such 
as changes in application rates, or both. Additionally, the FR 2028A 
data could not be used to answer questions regarding changes in the 
credit quality of applicants or identify potential underlying factors 
for observed changes in credit quality. For reasons such as these, the 
June 2015 memorandum stated ``The Federal Reserve is seeking 
alternative sources of detailed, disaggregated data on small business 
loans, but there are currently none available. Should a better source 
for this type of data become available, the Federal Reserve may revisit 
the need for this survey.''
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    \1\ See page 3 of the June 2015 OMB Supporting Statement for the 
FR 2028 at http://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201505-7100-002.
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    The Federal Reserve System has conducted a study of alternative 
small business loan data sources to assess their usefulness for 
addressing policy questions on small business credit. The study 
identified and conducted an extensive analysis of 35 existing small 
business lending data collections and potentially new data collections. 
The data collections considered included, among others, data collected 
by the Board of Governors, private sector surveys such as the National 
Federation of Independent Business member survey, and a Dodd-Frank Act 
mandated data collection by the Consumer Financial Protection 
Bureau.\2\ The primary finding was that existing and new data 
collections under consideration would not meet the policy needs for 
understanding and addressing the relevant policy issues and questions.
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    \2\ Dodd-Frank Wall Street Reform and Consumer Protection Act, 
Section 1071, Subtitle G--Regulatory Improvements, Sec. 1071--Small 
Business Data Collection.
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    The FR 2028D data collection is being proposed to address the gaps 
in existing and planned new surveys on small business lending. In 
addition, other Federal Reserve reports that have been developed in 
recent years provide information on large nonfarm business loans. As a 
result, the information used for assessing and analyzing developments 
in nonfarm business credit markets would be improved by combining the 
proposed FR 2028D data collection on the terms of small business loans 
with the existing reports on large business loans. For these reasons, 
the FR 2028A would be discontinued. The proposed final data collection 
for the FR 2028A would be for the May 2017 survey week.

Prime Rate Supplement to Survey of Terms of Lending (FR 2028S)

    The FR 2028S is completed by banks that file the FR 2028A or the FR 
2028B.

[[Page 17663]]

The prime rate, an administered rate, remains the base rate banks use 
to price a significant portion of the loans covered by the FR 2028A and 
FR 2028B.\3\ The prime rate is by far the most common base rate used to 
price variable rate business and farm loans at small and medium-sized 
banks. Even for large borrowers and the largest banks, the prime rate 
is a pricing option frequently available along with market-related 
rates. The FR 2028S imposes little burden and the information it 
provides is useful in interpreting movements in rates charged on 
business and farm loans, especially for small loans and for loans at 
smaller banks. It also provides valuable information about variations 
in the prime-lending rate across banks, which can be considerable. The 
FR 2028S will be renewed without revision and will be reported by FR 
2028B respondents. Information on base rates for small business loans 
will be included in the proposed FR 2028D.
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    \3\ The FR 2028S defines the prime rate to be, ``[T]he 
administered rate used [by the bank] for pricing business and other 
credit, which [is adjusted] from time to time in response to changes 
in market conditions. [The] institution may set this rate internally 
or may adopt as its own a published rate.''
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Proposed Small Business Lending Survey (FR 2028D)

    The FR 2028D would collect quantitative and qualitative information 
that the Federal Reserve can use to monitor developments in the 
availability of credit to small businesses. Bank lending to small 
businesses is critical for employment and economic growth at the local, 
regional, and national levels because it is a primary source of funding 
for these businesses. The FR 2028D was motivated by the inability to 
answer basic policy questions raised by Federal Reserve policymakers on 
small business credit during the recent financial crisis and subsequent 
recovery. It would also contribute to a better understanding of the 
role of community banks in providing loans to small businesses and on 
small business access to credit in local communities. The survey would 
be timed to make reports on developments in small business lending 
available for the second FOMC meeting of each quarter. The data would 
also be available for Federal Reserve System economists and other staff 
to use for research purposes. To get a complete understanding of the 
availability, terms, and market conditions of bank lending to small and 
large nonfarm businesses, the Federal Reserve would combine the 
information gathered from the FR 2028D with other Federal Reserve data 
collections that gather information on large business loans.
    The FR 2028D would improve the ability to assess and analyze 
developments in nonfarm small business credit markets and to answer 
policy questions in a timely manner. The proposed information to be 
collected is not available from existing or planned surveys conducted 
by either the private or public sectors. The survey would collect 
unique, quarterly quantitative and qualitative information on nonfarm 
small business lending that improves upon the information currently 
collected by the FR 2028A. The quantitative information is similar to 
the data in the FR 2028A, but the FR 2028D would collect quarterly 
amounts or average levels of the data items as opposed to individual 
loan information from a survey week. As a result, the quantitative 
information will be less costly to report and less impacted by 
idiosyncratic events. The qualitative questions will provide 
information on changes in loan demand, credit standards and terms, and 
credit quality of applicants and reasons for the changes. Information 
on the reasons for denying a small business loan application will also 
be collected.
    The FR 2028D would also improve upon current information on 
outstanding loans collected on the Report of Condition and Income 
(FFIEC 031 and FFIEC 041, as well as the anticipated FFIEC 051; OMB No. 
7100-0036) (Call Report), which collects data on loans less than a 
certain dollar amount rather than on loans to small businesses. The 
Call Report data may result in information distortions about the 
availability of credit to small businesses because not all small loans 
are made to small businesses.
    The FR 2028D would collect quantitative and qualitative information 
on loans to small businesses from a stratified sample of 398 banking 
institutions. The survey will be administered at a quarterly frequency 
and distributed during the second month of each quarter. Survey 
responses would be based on loan activity over the previous quarter. 
Quantitative information collected would include the aggregate number 
and dollar amount of outstanding loans and new loans extended by banks 
to small businesses each quarter, as well as line-of-credit drawdowns 
and the average interest rate and benchmark rate. Loans are separated 
into two categories: Term loans and lines of credit, with each category 
further separated into fixed rate and variable rate. Additionally, 
quantitative information on the number and dollar amount of small 
business loans with guarantees (Small Business Administration and 
other) would be collected, as well as information regarding loan 
maturity and the use of interest rate floors. The FR 2028D would also 
collect quantitative information on small business loan applications 
received and applications approved during the survey quarter, including 
information on applications from Low- and Moderate-Income tracts.
    Qualitative information collected by the FR 2028D would include 
questions to gauge changes in lending terms, loan demand, and credit 
standards for small business loans during the survey period.\4\ 
Furthermore, respondents will be asked to identify possible reasons for 
indicated changes in lending terms or credit standards. The survey 
would also include qualitative questions on the demand for small 
business loans, changes in credit line usage, and changes in the credit 
quality of small business loan applicants. Respondents would be asked 
to identify potential factors underlying a reported change in applicant 
credit quality (e.g. credit scores, quality of collateral) and to 
identify top reasons for denying small business loans during the survey 
quarter.
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    \4\ The inclusion of qualitative questions, which are the same 
as those in the Senior Loan Officer Opinion Survey on Bank Lending 
Practices (FR 2018; OMB No. 7100-0058), is meant to supplement the 
existing FR 2018 data to get a more comprehensive view of the 
availability of credit to businesses. Importantly, the definitions 
of a small business are different in the FR 2018 and proposed FR 
2028D. The FR 2018 covers lending to both small and large firms and 
defines small firms as those with annual sales of less than $50 
million, which is significantly larger than the $5 million threshold 
in the FR 2028D. Furthermore, the FR 2018 panel only includes large 
institutions while the FR 2028D panel will be a stratified sample of 
398 domestic banks and include institutions of all sizes. Therefore, 
not much overlap in the panels for the two data collections is 
expected.
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    Legal authorization and confidentiality: The Board's Legal Division 
has determined that these surveys are authorized by section 11(a)(2) of 
the Federal Reserve Act (12 U.S.C. 248(a)(2)) and are voluntary. 
Individual responses reported on the FR 2028A, FR 2028B, FR 2028D, and 
FR 2028S are regarded as confidential under the Freedom of Information 
Act (5 U.S.C. 552(b)(4)).

    Board of Governors of the Federal Reserve System, April 7, 2017.
Ann E. Misback
Secretary of the Board.
[FR Doc. 2017-07408 Filed 4-11-17; 8:45 am]
 BILLING CODE 6210-01-P



                                                                               Federal Register / Vol. 82, No. 69 / Wednesday, April 12, 2017 / Notices                                           17661

                                                  FEDERAL MARITIME COMMISSION                             Carrier-ILA Container Freight Station                 Desk Officer—Shagufta Ahmed—Office
                                                                                                          Trust Fund.                                           of Information and Regulatory Affairs,
                                                  Notice of Agreements Filed                                By Order of the Federal Maritime                    Office of Management and Budget, New
                                                                                                          Commission.                                           Executive Office Building, Room 10235
                                                     The Commission hereby gives notice
                                                                                                                                                                725 17th Street NW., Washington, DC
                                                  of the filing of the following agreements
                                                                                                            Dated: April 7, 2017.                               20503 or by fax to (202) 395–6974.
                                                  under the Shipping Act of 1984.
                                                                                                          Rachel E. Dickon,                                     FOR FURTHER INFORMATION CONTACT: A
                                                  Interested parties may submit comments
                                                  on the agreements to the Secretary,                     Assistant Secretary.                                  copy of the PRA OMB submission,
                                                  Federal Maritime Commission,                            [FR Doc. 2017–07402 Filed 4–11–17; 8:45 am]           including the proposed reporting form
                                                  Washington, DC 20573, within twelve                     BILLING CODE 6731–AA–P                                and instructions, supporting statement,
                                                  days of the date this notice appears in                                                                       and other documentation will be placed
                                                  the Federal Register. Copies of the                                                                           into OMB’s public docket files, once
                                                  agreements are available through the                    FEDERAL RESERVE SYSTEM                                approved. These documents will also be
                                                  Commission’s Web site (http://fmcinet/                                                                        made available on the Federal Reserve
                                                  fmc.agreements.web/public) or by                        Proposed Agency Information                           Board’s public Web site at: http://
                                                  contacting the Office of Agreements at                  Collection Activities; Comment                        www.federalreserve.gov/apps/
                                                  (202) 523–5793 or tradeanalysis@                        Request                                               reportforms/review.aspx or may be
                                                  fmc.gov.                                                                                                      requested from the agency clearance
                                                                                                          AGENCY: Board of Governors of the                     officer, whose name appears below.
                                                     Agreement No.: 012479.                               Federal Reserve System.
                                                     Title: HSDG/HLAG/CMA CGM WCCA                                                                                Federal Reserve Board Clearance
                                                                                                          ACTION: Notice, request for comment.                  Officer—Nuha Elmaghrabi—Office of
                                                  Vessel Sharing Agreement.
                                                     Parties: Hamburg Sud and CMA CGM                     SUMMARY:   The Board of Governors of the              the Chief Data Officer, Board of
                                                  S.A.                                                    Federal Reserve System (Board or                      Governors of the Federal Reserve
                                                     Filing Party: Wayne Rohde; Cozen                     Federal Reserve) invites comment on a                 System, Washington, DC 20551, (202)
                                                  O’Connor; 1200 19th Street NW.,                         proposal to extend for three years, with              452–3829. Telecommunications Device
                                                  Washington, DC 20036.                                   revision, the voluntary Survey of Terms               for the Deaf (TDD) users may contact
                                                     Synopsis: The agreement authorizes                   of Lending (STL; FR 2028; OMB No.                     (202) 263–4869, Board of Governors of
                                                  the parties to share vessels in the trade               7100–0061).                                           the Federal Reserve System,
                                                  between ports in California on the one                                                                        Washington, DC 20551.
                                                                                                          DATES: Comments must be submitted on
                                                  hand, and ports in Mexico, Colombia,                    or before June 12, 2017.                              SUPPLEMENTARY INFORMATION: On June
                                                  Costa Rica, El Salvador, Guatemala, and                 ADDRESSES: You may submit comments,
                                                                                                                                                                15, 1984, the Office of Management and
                                                  Nicaragua on the other hand.                            identified by FR 2028A, FR 2028B, FR                  Budget (OMB) delegated to the Board
                                                     Agreement No.: 012480.                               2028S, or FR 2028D, by any of the                     authority under the Paperwork
                                                     Title: NYK Bulk & Projects/China                     following methods:                                    Reduction Act (PRA) to approve of and
                                                  Navigation Slot Charter Agreement.                        • Agency Web site: http://                          assign OMB control numbers to
                                                     Parties: NYK Bulk & Projects and The                 www.federalreserve.gov. Follow the                    collection of information requests and
                                                  China Navigation Co. PTE LTD.                           instructions for submitting comments at               requirements conducted or sponsored
                                                     Filing Party: Kristen Chung; NYK Line                http://www.federalreserve.gov/apps/                   by the Board. In exercising this
                                                  (North America) Inc.; 300 Lighting Way,                 foia/proposedregs.aspx.                               delegated authority, the Board is
                                                  5th Floor; Secaucus, NJ 07094.                            • Federal eRulemaking Portal: http://               directed to take every reasonable step to
                                                     Synopsis: The Agreement authorizes                   www.regulations.gov. Follow the                       solicit comment. In determining
                                                  NYK to charter space to China                           instructions for submitting comments.                 whether to approve a collection of
                                                  Navigation between Suva, Fiji; and                        • Email: regs.comments@                             information, the Board will consider all
                                                  Apia, Samoa on the one hand, and                        federalreserve.gov. Include OMB                       comments received from the public and
                                                  Nuku’alofa, Tonga; Apia, Samoa; Pago                    number in the subject line of the                     other agencies.
                                                  Pago, American Samoa; and Papeete,                      message.                                                Request for comment on information
                                                  French Polynesia on the other hand.                       • Fax: (202) 452–3819 or (202) 452–                 collection proposal.
                                                     Agreement No.: 201157–007.                           3102.                                                   The Board invites public comment on
                                                     Title: USMX–ILA Master Contract                        • Mail: Robert deV. Frierson,                       the following information collection,
                                                  between United States Maritime                          Secretary, Board of Governors of the                  which is being reviewed under
                                                  Alliance, Ltd. and International                        Federal Reserve System, 20th Street and               authority delegated by the OMB under
                                                  Longshoremen’s Association.                             Constitution Avenue NW., Washington,                  the PRA. Comments are invited on the
                                                     Parties: United States Maritime                      DC 20551.                                             following:
                                                  Alliance, Ltd., on behalf of                              All public comments are available                     a. Whether the proposed collection of
                                                  Management, and the International                       from the Board’s Web site at http://                  information is necessary for the proper
                                                  Longshoremen’s Association, AFL–CIO.                    www.federalreserve.gov/apps/foia/                     performance of the Federal Reserve’s
                                                     Filing Parties: William M. Spelman,                  proposedregs.aspx as submitted, unless                functions; including whether the
                                                  Esq.; The Lambos Firm; 303 South                        modified for technical reasons.                       information has practical utility;
                                                  Broadway, Suite 410; Tarrytown, NY                      Accordingly, your comments will not be                  b. The accuracy of the Federal
                                                  10591; and Andre Mazzola, Esq.;                         edited to remove any identifying or                   Reserve’s estimate of the burden of the
                                                  Marrinan & Mazzola Mardon, P.C.; 26                     contact information. Public comments                  proposed information collection,
mstockstill on DSK30JT082PROD with NOTICES




                                                  Broadway, 17th Floor; New York, NY                      may also be viewed electronically or in               including the validity of the
                                                  10004.                                                  paper form in Room 3515, 1801 K Street                methodology and assumptions used;
                                                     Synopsis: The amendment revises the                  (between 18th and 19th Streets NW.)                     c. Ways to enhance the quality,
                                                  allocation of monies between two funds                  Washington, DC 20006 between 9:00                     utility, and clarity of the information to
                                                  administered through the USMX–ILA                       a.m. and 5:00 p.m. on weekdays.                       be collected;
                                                  Master Contract—the Carrier-ILA                           Additionally, commenters may send a                   d. Ways to minimize the burden of
                                                  Container Royalty Fund No. 5, and the                   copy of their comments to the OMB                     information collection on respondents,


                                             VerDate Sep<11>2014   18:45 Apr 11, 2017   Jkt 241001   PO 00000   Frm 00037   Fmt 4703   Sfmt 4703   E:\FR\FM\12APN1.SGM   12APN1


                                                  17662                        Federal Register / Vol. 82, No. 69 / Wednesday, April 12, 2017 / Notices

                                                  including through the use of automated                  average quantitative data on terms of                 issues, such as changes in bank lending
                                                  collection techniques or other forms of                 small business loans and qualitative                  standards or terms, or demand issues,
                                                  information technology; and                             information on changes and the reasons                such as changes in application rates, or
                                                    e. Estimates of capital or startup costs              for changes in the terms of lending), and             both. Additionally, the FR 2028A data
                                                  and costs of operation, maintenance,                    (3) the STL would be renamed the                      could not be used to answer questions
                                                  and purchase of services to provide                     Survey of Small Business and Farm                     regarding changes in the credit quality
                                                  information.                                            Lending (SSBFL) to more accurately                    of applicants or identify potential
                                                    At the end of the comment period, the                 describe the data collection. No changes              underlying factors for observed changes
                                                  comments and recommendations                            are proposed to the FR 2028B and FR                   in credit quality. For reasons such as
                                                  received will be analyzed to determine                  2028S. The proposed final data                        these, the June 2015 memorandum
                                                  the extent to which the Federal Reserve                 collection for the FR 2028A would be                  stated ‘‘The Federal Reserve is seeking
                                                  should modify the proposed revisions                    for the May 2017 survey week, and the                 alternative sources of detailed,
                                                  prior to giving final approval.                         proposed first data collection for the FR             disaggregated data on small business
                                                    Proposal to approve under OMB                         2028D would be in November 2017 for                   loans, but there are currently none
                                                  delegated authority the extension for                   the September 30, 2017, as of date.                   available. Should a better source for this
                                                  three years, with revision, of the                                                                            type of data become available, the
                                                  following report:                                       Survey of Terms of Business Lending
                                                                                                                                                                Federal Reserve may revisit the need for
                                                    Report Title: Survey of Small Business                (FR 2028A)
                                                                                                                                                                this survey.’’
                                                  and Farm Lending.                                          The survey data are used to assess                    The Federal Reserve System has
                                                    Agency Form Number: FR 2028B, FR                      conditions and to track developments in               conducted a study of alternative small
                                                  2028D, and FR 2028S.                                    business credit markets. For instance,                business loan data sources to assess
                                                    OMB Control Number: 7100–0061.                        during the credit market turmoil that                 their usefulness for addressing policy
                                                    Frequency: Quarterly.                                 began in the second half of 2007 and                  questions on small business credit. The
                                                    Respondents: Commercial banks.                        early 2008, STL data showed a smaller
                                                    Estimated Number of Respondents:                                                                            study identified and conducted an
                                                                                                          increase in the spread of loan rates over             extensive analysis of 35 existing small
                                                  FR 2028B–250; FR 2028D–398; and FR
                                                                                                          banks’ cost of funds than other                       business lending data collections and
                                                  2028S–250.
                                                                                                          indicators of business loan pricing                   potentially new data collections. The
                                                    Estimated Average Hours per
                                                                                                          suggested. Moreover, information about                data collections considered included,
                                                  Response: FR 2028B–1.4 hours; FR
                                                                                                          the date on which commitments were                    among others, data collected by the
                                                  2028D–1.5 hours; FR 2028D (First Time
                                                                                                          finalized or renewed has been important               Board of Governors, private sector
                                                  only)–1.5 hours; and FR 2028S–0.1
                                                                                                          in understanding how loan rates                       surveys such as the National Federation
                                                  hours.
                                                    Estimated Annual Burden Hours:                        evolved during the crisis, as it allowed              of Independent Business member
                                                  4,485 hours.                                            the Federal Reserve to study the terms                survey, and a Dodd-Frank Act mandated
                                                    General Description of Report: The                    on new loan commitments separately                    data collection by the Consumer
                                                  STL collects unique information                         from commitments written prior to the                 Financial Protection Bureau.2 The
                                                  concerning price and certain nonprice                   crisis. More broadly, the survey data                 primary finding was that existing and
                                                  terms of loans made to businesses and                   have been useful for monitoring the                   new data collections under
                                                  farmers during the first full business                  changing role of the prime rate as a                  consideration would not meet the policy
                                                  week of the mid-month of each quarter                   benchmark for business loan pricing                   needs for understanding and addressing
                                                  (February, May, August, and                             and of shifts in the mix of fixed-rate and            the relevant policy issues and questions.
                                                  November). The FR 2028A and FR                          variable-rate lending as financial                       The FR 2028D data collection is being
                                                  2028B collect detailed data on                          markets have changed. The STL                         proposed to address the gaps in existing
                                                  individual loans made during the                        microdata are not available to                        and planned new surveys on small
                                                  survey week, and the FR 2028S collects                  researchers outside the Federal Reserve,              business lending. In addition, other
                                                  the prime interest rate for each day of                 but have been used in a number of                     Federal Reserve reports that have been
                                                  the survey from both FR 2028A and FR                    research papers.                                      developed in recent years provide
                                                  2028B respondents. From these sample                       The FR 2028A data have limitations                 information on large nonfarm business
                                                  STL data, estimates of the terms of                     for assessing conditions and analyzing                loans. As a result, the information used
                                                  business loans and farm loans extended                  developments in nonfarm business                      for assessing and analyzing
                                                  during the reporting week are                           credit markets. For example, it was                   developments in nonfarm business
                                                  constructed. The aggregate estimates for                noted in the memorandum for renewing                  credit markets would be improved by
                                                  business loans are published in the                     the STL in June 2015 that ‘‘The STL is                combining the proposed FR 2028D data
                                                  quarterly E.2 statistical release, Survey               an important source of individual loan                collection on the terms of small
                                                  of Terms of Business Lending, and                       data used by those concerned with                     business loans with the existing reports
                                                  aggregate estimates for farm loans are                  lending to small businesses, for which                on large business loans. For these
                                                  published in the E.15 statistical release,              banks are one of the primary sources of               reasons, the FR 2028A would be
                                                  Agricultural Finance Databook.                          credit.’’ 1 However, the data were                    discontinued. The proposed final data
                                                    Proposed revisions: The Federal                       insufficient for addressing questions                 collection for the FR 2028A would be
                                                  Reserve proposes to (1) discontinue the                 about small business lending during the               for the May 2017 survey week.
                                                  FR 2028A, (2) create a new Small                        financial crisis, ensuing recession, or
                                                                                                          economic recovery. For example, the                   Prime Rate Supplement to Survey of
                                                  Business Lending Survey (FR 2028D)
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                                                                                                          data could not answer questions on                    Terms of Lending (FR 2028S)
                                                  that would provide focused and
                                                  enhanced information on small business                  whether changes in the flow of credit to                The FR 2028S is completed by banks
                                                  lending including rates, terms, credit                  small businesses were due to supply                   that file the FR 2028A or the FR 2028B.
                                                  availability, and reasons for their                       1 See page 3 of the June 2015 OMB Supporting          2 Dodd-Frank Wall Street Reform and Consumer
                                                  changes (in contrast to the individual                  Statement for the FR 2028 at http://                  Protection Act, Section 1071, Subtitle G—
                                                  loan data collected on the FR 2028A, the                www.reginfo.gov/public/do/                            Regulatory Improvements, Sec. 1071—Small
                                                  FR 2028D would collect quarterly                        PRAViewDocument?ref_nbr=201505-7100-002.              Business Data Collection.



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                                                                               Federal Register / Vol. 82, No. 69 / Wednesday, April 12, 2017 / Notices                                                   17663

                                                  The prime rate, an administered rate,                   with other Federal Reserve data                       and dollar amount of small business
                                                  remains the base rate banks use to price                collections that gather information on                loans with guarantees (Small Business
                                                  a significant portion of the loans                      large business loans.                                 Administration and other) would be
                                                  covered by the FR 2028A and FR                             The FR 2028D would improve the                     collected, as well as information
                                                  2028B.3 The prime rate is by far the                    ability to assess and analyze                         regarding loan maturity and the use of
                                                  most common base rate used to price                     developments in nonfarm small                         interest rate floors. The FR 2028D would
                                                  variable rate business and farm loans at                business credit markets and to answer                 also collect quantitative information on
                                                  small and medium-sized banks. Even for                  policy questions in a timely manner.                  small business loan applications
                                                  large borrowers and the largest banks,                  The proposed information to be                        received and applications approved
                                                  the prime rate is a pricing option                      collected is not available from existing              during the survey quarter, including
                                                  frequently available along with market-                 or planned surveys conducted by either                information on applications from Low-
                                                  related rates. The FR 2028S imposes                     the private or public sectors. The survey             and Moderate-Income tracts.
                                                  little burden and the information it                    would collect unique, quarterly
                                                  provides is useful in interpreting                      quantitative and qualitative information                Qualitative information collected by
                                                  movements in rates charged on business                  on nonfarm small business lending that                the FR 2028D would include questions
                                                  and farm loans, especially for small                    improves upon the information                         to gauge changes in lending terms, loan
                                                  loans and for loans at smaller banks. It                currently collected by the FR 2028A.                  demand, and credit standards for small
                                                  also provides valuable information                      The quantitative information is similar               business loans during the survey
                                                  about variations in the prime-lending                   to the data in the FR 2028A, but the FR               period.4 Furthermore, respondents will
                                                  rate across banks, which can be                         2028D would collect quarterly amounts                 be asked to identify possible reasons for
                                                  considerable. The FR 2028S will be                      or average levels of the data items as                indicated changes in lending terms or
                                                  renewed without revision and will be                    opposed to individual loan information                credit standards. The survey would also
                                                  reported by FR 2028B respondents.                       from a survey week. As a result, the                  include qualitative questions on the
                                                  Information on base rates for small                     quantitative information will be less                 demand for small business loans,
                                                  business loans will be included in the                  costly to report and less impacted by                 changes in credit line usage, and
                                                  proposed FR 2028D.                                      idiosyncratic events. The qualitative                 changes in the credit quality of small
                                                                                                          questions will provide information on                 business loan applicants. Respondents
                                                  Proposed Small Business Lending                         changes in loan demand, credit
                                                  Survey (FR 2028D)                                                                                             would be asked to identify potential
                                                                                                          standards and terms, and credit quality               factors underlying a reported change in
                                                    The FR 2028D would collect                            of applicants and reasons for the                     applicant credit quality (e.g. credit
                                                  quantitative and qualitative information                changes. Information on the reasons for               scores, quality of collateral) and to
                                                  that the Federal Reserve can use to                     denying a small business loan                         identify top reasons for denying small
                                                  monitor developments in the                             application will also be collected.                   business loans during the survey
                                                  availability of credit to small businesses.                The FR 2028D would also improve                    quarter.
                                                  Bank lending to small businesses is                     upon current information on
                                                  critical for employment and economic                    outstanding loans collected on the                      Legal authorization and
                                                  growth at the local, regional, and                      Report of Condition and Income (FFIEC                 confidentiality: The Board’s Legal
                                                  national levels because it is a primary                 031 and FFIEC 041, as well as the                     Division has determined that these
                                                  source of funding for these businesses.                 anticipated FFIEC 051; OMB No. 7100–                  surveys are authorized by section
                                                  The FR 2028D was motivated by the                       0036) (Call Report), which collects data              11(a)(2) of the Federal Reserve Act (12
                                                  inability to answer basic policy                        on loans less than a certain dollar                   U.S.C. 248(a)(2)) and are voluntary.
                                                  questions raised by Federal Reserve                     amount rather than on loans to small                  Individual responses reported on the FR
                                                  policymakers on small business credit                   businesses. The Call Report data may                  2028A, FR 2028B, FR 2028D, and FR
                                                  during the recent financial crisis and                  result in information distortions about               2028S are regarded as confidential
                                                  subsequent recovery. It would also                      the availability of credit to small                   under the Freedom of Information Act
                                                  contribute to a better understanding of                 businesses because not all small loans                (5 U.S.C. 552(b)(4)).
                                                  the role of community banks in                          are made to small businesses.
                                                                                                                                                                  Board of Governors of the Federal Reserve
                                                  providing loans to small businesses and                    The FR 2028D would collect
                                                                                                                                                                System, April 7, 2017.
                                                  on small business access to credit in                   quantitative and qualitative information
                                                                                                          on loans to small businesses from a                   Ann E. Misback
                                                  local communities. The survey would
                                                  be timed to make reports on                             stratified sample of 398 banking                      Secretary of the Board.
                                                  developments in small business lending                  institutions. The survey will be                      [FR Doc. 2017–07408 Filed 4–11–17; 8:45 am]
                                                  available for the second FOMC meeting                   administered at a quarterly frequency                 BILLING CODE 6210–01–P
                                                  of each quarter. The data would also be                 and distributed during the second
                                                  available for Federal Reserve System                    month of each quarter. Survey responses                 4 The inclusion of qualitative questions, which

                                                  economists and other staff to use for                   would be based on loan activity over the              are the same as those in the Senior Loan Officer
                                                  research purposes. To get a complete                    previous quarter. Quantitative                        Opinion Survey on Bank Lending Practices (FR
                                                                                                          information collected would include the               2018; OMB No. 7100–0058), is meant to supplement
                                                  understanding of the availability, terms,                                                                     the existing FR 2018 data to get a more
                                                  and market conditions of bank lending                   aggregate number and dollar amount of                 comprehensive view of the availability of credit to
                                                  to small and large nonfarm businesses,                  outstanding loans and new loans                       businesses. Importantly, the definitions of a small
                                                  the Federal Reserve would combine the                   extended by banks to small businesses                 business are different in the FR 2018 and proposed
                                                                                                          each quarter, as well as line-of-credit               FR 2028D. The FR 2018 covers lending to both
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                                                  information gathered from the FR 2028D                                                                        small and large firms and defines small firms as
                                                                                                          drawdowns and the average interest rate               those with annual sales of less than $50 million,
                                                     3 The FR 2028S defines the prime rate to be,         and benchmark rate. Loans are                         which is significantly larger than the $5 million
                                                  ‘‘[T]he administered rate used [by the bank] for        separated into two categories: Term                   threshold in the FR 2028D. Furthermore, the FR
                                                  pricing business and other credit, which [is            loans and lines of credit, with each                  2018 panel only includes large institutions while
                                                  adjusted] from time to time in response to changes                                                            the FR 2028D panel will be a stratified sample of
                                                  in market conditions. [The] institution may set this
                                                                                                          category further separated into fixed rate            398 domestic banks and include institutions of all
                                                  rate internally or may adopt as its own a published     and variable rate. Additionally,                      sizes. Therefore, not much overlap in the panels for
                                                  rate.’’                                                 quantitative information on the number                the two data collections is expected.



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Document Created: 2017-04-12 00:23:13
Document Modified: 2017-04-12 00:23:13
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice, request for comment.
DatesComments must be submitted on or before June 12, 2017.
ContactA copy of the PRA OMB submission, including the proposed reporting form and instructions, supporting statement, and other documentation will be placed into OMB's public docket files, once approved. These documents will also be made available on the Federal Reserve Board's public Web site at: http:// www.federalreserve.gov/apps/reportforms/review.aspx or may be requested from the agency clearance officer, whose name appears below.
FR Citation82 FR 17661 

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