82 FR 25913 - Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Capital Adequacy Standards
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency Federal Register Volume 82, Issue 106 (June 5, 2017)
Office of the Comptroller of the Currency
Federal Register Volume 82, Issue 106 (June 5, 2017)
| Page Range | 25913-25916 | |
| FR Document | 2017-11548 |
[Federal Register Volume 82, Number 106 (Monday, June 5, 2017)] [Notices] [Pages 25913-25916] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11548] ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Capital Adequacy Standards AGENCY: Office of the Comptroller of the Currency (OCC), Treasury. ACTION: Notice and request for comment. ----------------------------------------------------------------------- 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). 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 ``Capital Adequacy Standards.'' The OCC also is giving notice that it has submitted the collection to OMB for review. DATES: Comments must be submitted on or before July 5, 2017. 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: 1557-0318, 400 7th Street SW., Suite 3E-218, 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 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, 1557-0318, 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, OCC 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: Under the PRA (44 U.S.C. 3501-3520), federal agencies must obtain approval from OMB for each collection of information that they conduct or sponsor. ``Collection of information'' is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. The OCC is asking that OMB extend its approval of the following collection: Title: Capital Adequacy Standards. OMB Control No.: 1557-0318. Frequency of Response: On occasion. Affected Public: Business or other for-profit. Section-by-Section-Analysis Twelve CFR part 3 sets forth the OCC's minimum capital requirements and overall capital adequacy standards for national banks and federal savings associations (institutions). Section 3.3(c) allows for the recognition of netting across multiple types of transactions or agreements if an institution obtains a written legal opinion verifying the validity and enforceability of the agreement under certain circumstances and maintains sufficient written documentation of this legal review. Section 3.22(h)(2)(iii)(A) permits the use of a conservative estimate of the amount of an institution's investment in its own capital or the capital of unconsolidated financial institutions held through the index security with prior approval by the OCC. Section 3.35(b)(3)(i)(A) requires, for a cleared transaction with a qualified central counterparty (QCCP), that a client bank apply a risk weight of two percent, provided that the collateral posted by the bank to the QCCP is subject to certain arrangements and the client bank has conducted a sufficient legal review (and maintains sufficient written documentation of the legal review) to conclude with a well-founded basis that the arrangements, in the event of a legal challenge, would be found to be legal, valid, binding, and enforceable under the law of the relevant jurisdictions. Section 3.37(c)(4)(i)(E), regarding collateralized transactions, requires that an institution have policies and procedures in place describing how it determines the period of significant financial stress used to calculate its own internal estimates for haircuts and be able to provide empirical support for the period used. Section 3.41(b), which sets forth operational requirements for securitization exposures, allows an institution to recognize for risk- based capital purposes, in the case of synthetic securitizations, a credit risk mitigant to hedge underlying exposures if certain conditions are met. Section 3.41(b)(3) includes a requirement that the institution obtain a well-reasoned opinion from legal counsel that confirms the enforceability of the credit risk mitigant in all relevant jurisdictions. Section 3.41(c)(2)(i) requires that an institution demonstrate its comprehensive understanding of a securitization exposure by conducting and documenting an analysis of the risk characteristics of each securitization exposure prior to its acquisition, taking into account a number of specified considerations. In the case where an institution provides non-contractual support to a securitization, Sec. 3.42(e)(2) requires the institution to publicly disclose that it has provided implicit support to a securitization and the risk-based capital impact to the bank of providing such implicit support. Section 3.62 sets forth disclosure requirements related to the capital requirements of an institution. These requirements apply to an institution with total consolidated assets of $50 billion or more that is not a consolidated subsidiary of an entity that is itself subject to Basel III disclosures. [[Page 25914]] Section 3.62(a) requires quarterly disclosure of information in the applicable tables in Sec. 3.63 and, if a significant change occurs, such that the most recent reported amounts are no longer reflective of the institution's capital adequacy and risk profile, Sec. 3.62(a) requires the institution to disclose as soon as practicable thereafter a brief discussion of the change and its likely impact. Section 3.62(a) also permits annual disclosure of qualitative information that typically does not change each quarter, provided that any significant changes are disclosed in the interim. Section 3.62(b) requires that an institution have a formal disclosure policy approved by the board of directors that addresses its approach for determining the disclosures it makes. The policy must address the associated internal controls and disclosure controls and procedures. Section 3.62(c) permits an institution to disclose more general information about certain subjects if the institution concludes that the specific commercial or financial information required to be disclosed under Sec. 3.62 is exempt from disclosure under the Freedom of Information Act (5 U.S.C. 552) and the institution provides the reason the specific items of information have not been disclosed. Section 3.63 sets forth the specific disclosure requirements for a non-advanced approaches institution with total consolidated assets of $50 billion or more that is not a consolidated subsidiary of an entity that is itself subject to Basel III disclosure requirements. Section 3.63(a) requires those institutions to make the disclosures in Tables 1 through 10 in Sec. 3.63 and in Sec. 3.63(b) for each of the last three years beginning on the effective date of the rule. Section 3.63(b) requires quarterly disclosure of an institution's common equity tier 1 capital, additional tier 1 capital, tier 2 capital, tier 1 and total capital ratios, including the regulatory capital elements and all the regulatory adjustments and deductions needed to calculate the numerator of such ratios; total risk-weighted assets, including the different regulatory adjustments and deductions needed to calculate total risk-weighted assets; regulatory capital ratios during any transition periods, including a description of all the regulatory capital elements and all regulatory adjustments and deductions needed to calculate the numerator and denominator of each capital ratio during any transition period; and a reconciliation of regulatory capital elements as they relate to its balance sheet in any audited consolidated financial statements. Tables 1 through 10 in Sec. 3.63 set forth qualitative and/or quantitative requirements for scope of application, capital structure, capital adequacy, capital conservation buffer, credit risk, counterparty credit risk-related exposures, credit risk mitigation, securitizations, equities not subject to Subpart F (Market Risk requirements) of the rule, and interest rate risk for non- trading activities. Section 3.121 requires an institution subject to the advanced approaches risk-based capital requirements to adopt a written implementation plan to address how it will comply with the advanced capital adequacy framework's qualification requirements and also develop and maintain a comprehensive and sound planning and governance process to oversee the implementation efforts described in the plan. Section 3.122 further requires these institutions to: Develop processes for assessing capital adequacy in relation to an organization's risk profile; establish and maintain internal risk rating and segmentation systems for wholesale and retail risk exposures, including comprehensive risk parameter quantification processes and processes for annual reviews and analyses of reference data to determine their relevance; document their processes for identifying, measuring, monitoring, controlling, and internally reporting operational risk; verify the accurate and timely reporting of risk-based capital requirements; and monitor, validate, and refine their advanced systems. Section 3.123 sets forth ongoing qualification requirements that require an institution to notify the OCC of any material change to an advance system and to establish and submit to the OCC a plan for returning to compliance with the qualification requirements. Section 3.124 requires an institution to submit to the OCC, within 90 days of consummating a merger or acquisition, an implementation plan for using its advanced systems for the merged or acquired company. Section 3.132(b)(2)(iii)(A) addresses counterparty credit risk of repo-style transactions, eligible margin loans, and over-the-counter (OTC) derivative contracts, and internal estimates for haircuts. With the prior written approval of the OCC, an institution may calculate haircuts using its own internal estimates of the volatilities of market prices and foreign exchange rates. The section requires institutions to satisfy certain minimum quantitative standards in order to receive OCC approval to use its own internal estimates. Section 3.132(b)(3) covers counterparty credit risk of repo-style transactions, eligible margin loans, OTC derivative contracts, and simple Value-at-Risk (VaR) methodology. With the prior written approval of the OCC, an institution may estimate exposure at default (EAD) for a netting set using a VaR model that meets certain requirements. Section 3.132(d)(1) permits the use of the internal models methodology (IMM) to determine EAD for counterparty credit risk for derivative contracts with prior written approval from the OCC. Section 3.132(d)(1)(iii) permits the use of the internal models methodology for derivative contracts, eligible margin loans, and repo-style transactions subject to a qualifying cross-product netting agreement with prior written approval from the OCC. Section 3.132(d)(2)(iv) addresses counterparty credit risk of repo- style transactions, eligible margin loans, and OTC derivative contracts, and risk-weighted assets using IMM. Under the IMM, an institution uses an internal model to estimate the expected exposure (EE) for a netting set and then calculates EAD based on that EE. An institution must calculate two EEs and two EADs (one stressed and one unstressed) for each netting as outlined in this section. An institution may use a conservative measure of EAD subject to prior written approval of the OCC. Section 3.132(d)(3)(vi) addresses counterparty credit risk of repo- style transactions, eligible margin loans, and OTC derivative contracts. To obtain OCC approval to calculate the distributions of exposures upon which the EAD calculation is based, an institution must demonstrate to the satisfaction of the OCC that it has been using for at least one year an internal model that broadly meets the minimum standards, with which the institution must maintain compliance. The institution must have procedures to identify, monitor, and control wrong-way risk throughout the life of an exposure and they must include stress testing and scenario analysis. Section 3.132(d)(3)(viii) addresses counterparty credit risk of repo-style transactions, eligible margin loans, and OTC derivative contracts. When estimating model parameters based on a stress period, an institution must use at least three years of historical data that include a period of stress to the credit default spreads of the institution's counterparties. The institution must review the data set and update the data as necessary, particularly for any material changes in its counterparties. The institution must demonstrate at least quarterly that the stress period coincides with increased credit default [[Page 25915]] swap (CDS) or other credit spreads of the institution's counterparties. The institution must have procedures to evaluate the effectiveness of its stress calibration that include a process for using benchmark portfolios that are vulnerable to the same risk factors as the institution's portfolio. The OCC may require the institution to modify its stress calibration to better reflect actual historic losses of the portfolio. Section 3.132(d)(3)(ix), regarding counterparty credit risk of repo-style transactions, eligible margin loans, and OTC derivative contracts requires that an institution must subject its internal model to an initial validation and annual model review process that includes consideration of whether the inputs and risk factors, as well as the model outputs, are appropriate. This section requires institutions to have a backtesting program for its model that includes a process by which unacceptable model performance will be determined and remedied. Section 3.132(d)(3)(x), regarding counterparty credit risk of repo- style transactions, eligible margin loans, and OTC derivative contracts, provides that an institution must have policies for the measurement, management, and control of collateral and margin amounts. Section 3.132(d)(3)(xi), concerning counterparty credit risk of repo-style transactions, eligible margin loans, and OTC derivative contracts states that an institution must have a comprehensive stress testing program that captures all credit exposures to counterparties, and incorporates stress testing of principal market risk factors and creditworthiness of counterparties. Section 3.141 relates to operational criteria for recognizing the transfer of risk in connection with a securitization. Section 3.141(b)(3) requires an institution to obtain a well-reasoned legal opinion confirming the enforceability of the credit risk mitigant in all relevant jurisdictions in order to recognize the transference of risk in connection with a synthetic securitization. An institution must demonstrate its comprehensive understanding of a securitization exposure under Sec. 3.141(c)(2) for each securitization exposure by conducting an analysis of the risk characteristics of a securitization exposure prior to acquiring the exposure and document such analysis within three business days after acquiring the exposure. Sections 3.141(c)(2)(i) and (ii) require that institutions, on an on-going basis (at least quarterly), evaluate, review, and update as appropriate the analysis required under this section for each securitization exposure. Section 3.142(h)(2), regarding the capital treatment for securitization exposures, requires an institution to disclose publicly if it has provided implicit support to a securitization and the regulatory capital impact to the institution of providing such implicit support. Section 3.153(b), outlining the Internal Models Approach (IMA) for calculating risk-weighted assets for equity exposures, specifies that an institution must receive prior written approval from the OCC before it can use IMA by demonstrating to the OCC that the national bank or federal savings association meets certain criteria. Section 3.172 specifies that each advanced approaches institution that has completed the parallel run process must publicly disclose its total and tier 1 risk-based capital ratios and their components. Section 3.173 addresses disclosures by an advanced approaches institution that is not a consolidated subsidiary of an entity that is subject to the Basel III disclosure requirements. An advanced approaches institution that is subject to the disclosure requirements must make the disclosures described in Tables 1 through 12. The institution must make these disclosures publicly available for each of the last three years (that is, twelve quarters) or such shorter period beginning on the effective date of this subpart E. The tables in Sec. 3.173 require qualitative and quantitative public disclosures for capital structure, capital adequacy, capital conservation and countercyclical buffers, credit risk, securitization, operational risk, equities not subject to the market risk capital requirements, and interest rate risk for non-trading activities. Burden Estimates: Estimated Number of Respondents: 1,365. Estimated Total Annual Burden Hours: 240,711. Comments: On February 8, 2017, the OCC issued a 60-day notice soliciting comment on the information collection, 82 FR 9958. One comment was received from an individual. The commenter stated that a capital rule must be simple, easily understood, and not easily gamed by management in order to be useful. The commenter believed that 12 CFR part 3 does not meet these criteria and is too complex to be understood, verified and enforced, especially with respect to large banking organizations. The commenter stated that there were fewer bank failures in certain time periods before minimum capital regulations were adopted. The commenter also stated that revisiting 12 CFR part 3 would be in line with the Executive Order on Core Principles for Regulating the United States Financial System, which states that regulation should be efficient, effective, and appropriately tailored. Revising 12 CFR part 3 would require a rulemaking and cannot be done through this PRA process. It should be noted that in developing the capital rules in 12 CFR part 3, the OCC addressed specific concerns related to cost, complexity, and burden of the rules. During the recent financial crisis, the lack of confidence in the banking sector increased banking organizations' cost of funding, impaired banking organizations' access to short-term funding, depressed values of banking organizations' equities, and required many banking organizations to seek government assistance. Concerns about banking organizations arose not only because market participants expected steep losses on banking organizations' assets, but also because of substantial uncertainty surrounding estimated loss rates, and thus future earnings. It is important that capital rules are sufficiently granular and risk-sensitive to capture the risks posed by particular exposures. In large part, the complexity of the capital rules is driven by the complexity of the business activities that banking organizations engage in. As banking organizations have engaged in new, more complicated financial transactions (for example, dealing in derivatives), the capital rules have become more sophisticated to capture the risks posed by these transactions. The OCC, pursuant to section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA),\1\ published several notices to identify outdated or otherwise unnecessary regulatory requirements imposed on insured depository institutions, three of which included 12 CFR part 3.\2\ Over 30 commenters addressed the OCC's regulatory capital requirements, focusing primarily on the revised capital rules.\3\ The comments received and the OCC's response were included in the Federal Financial Institutions Examination Council's Report to Congress on EGRPRA in March 2017.\4\ The agencies understand community banks' concerns that the regulatory capital rules are too complex given community banks' size, risk [[Page 25916]] profile, condition, and complexity and are developing a proposal to simplify the regulatory capital rules in a manner that maintains safety and soundness and the quality and quantity of regulatory capital in the banking system. Such amendments may include (1) replacing the framework's complex treatment of high volatility commercial real estate exposures with a more straightforward treatment for most acquisition, development, or construction loans; (2) simplifying the current regulatory capital treatment for mortgage servicing assets, timing difference deferred tax assets, and holdings of regulatory capital instruments issued by financial institutions; and (3) simplifying the current limitations on minority interests in regulatory capital. The agencies would seek industry comment on these amendments through the normal notice and comment process. --------------------------------------------------------------------------- \1\ Public Law 104-208 (1996), codified at 12 U.S.C. 3311(b). \2\ 79 FR 32172 at 32183 (June 4, 2014); 80 FR 32046 at 32052- 32053 (June 5, 2015); and 80 FR 79724 at 79733-79734 (December 23, 2015). \3\ 78 FR 62017 (October 11, 2013). \4\ https://www.occ.gov/news-issuances/news-releases/2017/nr-ia-2017-33a.pdf, pages 18-23. --------------------------------------------------------------------------- The OCC regularly monitors and analyzes developments in the banking industry to ensure that the revised capital rules appropriately reflect risks faced by banking organizations and considers many issues before determining whether a change to the revised capital rules is appropriate. The safety and soundness of community banks depends, in part, on having and maintaining sufficient regulatory capital. More than 500 banking organizations, mostly community banks, failed in the aftermath of the financial crisis largely because they did not have sufficient capital relative to their risk. To assist community banks, the agencies published a community bank guide to help community banks understand the sections of the revised 2013 capital rules most relevant to their operations.\5\ The OCC has also published a number of guidance documents to assist banks in their capital planning efforts \6\ and intends to publish revisions to its capital handbook to make guidance publications and regulatory revisions available in one place. --------------------------------------------------------------------------- \5\ ``New Capital Rule; Community Bank Guide,'' www.occ.gov/news-issuances/news-releases/2013/2013-110b.pdf. \6\ For example, OCC bulletin 2012-16, (June 7, 2012) ``Capital Planning: Guidance for Evaluating Capital Planning and Adequacy,'' https://www.occ.gov/news-issuances/bulletins/2012/bulletin-2012-16.html. --------------------------------------------------------------------------- Comments continue to be invited on: (a) Whether the collections of information 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; and (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. Dated: May 30, 2017. Karen Solomon, Deputy Chief Counsel, Office of the Comptroller of the Currency. [FR Doc. 2017-11548 Filed 6-2-17; 8:45 am] BILLING CODE 4810-33-P
![Federal Register / Vol. 82, No. 106 / Monday, June 5, 2017 / Notices 25913
through the use of automated collection visitors make an appointment to inspect amount of an institution’s investment in
techniques or other forms of information comments. You may do so by calling its own capital or the capital of
technology; and (202) 649–6700 or, for persons who are unconsolidated financial institutions
(e) Estimates of capital or start-up deaf or hard of hearing, TTY, (202) 649– held through the index security with
costs and costs of operation, 5597. Upon arrival, visitors will be prior approval by the OCC.
maintenance, and purchase of services required to present valid government- Section 3.35(b)(3)(i)(A) requires, for a
to provide information. issued photo identification and submit cleared transaction with a qualified
Dated: May 30, 2017. to security screening in order to inspect central counterparty (QCCP), that a
Karen Solomon, and photocopy comments. client bank apply a risk weight of two
All comments received, including percent, provided that the collateral
Deputy Chief Counsel, Office of the
Comptroller of the Currency. attachments and other supporting posted by the bank to the QCCP is
materials, are part of the public record subject to certain arrangements and the
[FR Doc. 2017–11550 Filed 6–2–17; 8:45 am]
and subject to public disclosure. Do not client bank has conducted a sufficient
BILLING CODE 4810–33–P
include any information in your legal review (and maintains sufficient
comment or supporting materials that written documentation of the legal
you consider confidential or review) to conclude with a well-
DEPARTMENT OF THE TREASURY
inappropriate for public disclosure. founded basis that the arrangements, in
Office of the Comptroller of the Additionally, please send a copy of the event of a legal challenge, would be
Currency your comments by mail to: OCC Desk found to be legal, valid, binding, and
Officer, 1557–0318, U.S. Office of enforceable under the law of the
Agency Information Collection Management and Budget, 725 17th relevant jurisdictions.
Activities: Information Collection Street NW., #10235, Washington, DC Section 3.37(c)(4)(i)(E), regarding
Renewal; Submission for OMB Review; 20503 or by email to oira submission@ collateralized transactions, requires that
Capital Adequacy Standards omb.eop.gov. an institution have policies and
procedures in place describing how it
AGENCY: Office of the Comptroller of the FOR FURTHER INFORMATION CONTACT:
determines the period of significant
Currency (OCC), Treasury. Shaquita Merritt, OCC Clearance financial stress used to calculate its own
ACTION: Notice and request for comment. Officer, (202) 649–5490 or, for persons internal estimates for haircuts and be
who are deaf or hard of hearing, TTY, able to provide empirical support for the
SUMMARY: The OCC, as part of its (202) 649–5597, Legislative and period used.
continuing effort to reduce paperwork Regulatory Activities Division, Office of Section 3.41(b), which sets forth
and respondent burden, invites the the Comptroller of the Currency, 400 7th operational requirements for
general public and other federal Street SW., Washington, DC 20219. securitization exposures, allows an
agencies to take this opportunity to SUPPLEMENTARY INFORMATION: Under the institution to recognize for risk-based
comment on a continuing information PRA (44 U.S.C. 3501–3520), federal capital purposes, in the case of synthetic
collection as required by the Paperwork agencies must obtain approval from securitizations, a credit risk mitigant to
Reduction Act of 1995 (PRA). OMB for each collection of information hedge underlying exposures if certain
In accordance with the requirements that they conduct or sponsor. conditions are met. Section 3.41(b)(3)
of the PRA, the OCC may not conduct ‘‘Collection of information’’ is defined includes a requirement that the
or sponsor, and the respondent is not in 44 U.S.C. 3502(3) and 5 CFR institution obtain a well-reasoned
required to respond to, an information 1320.3(c) to include agency requests or opinion from legal counsel that
collection unless it displays a currently requirements that members of the public confirms the enforceability of the credit
valid Office of Management and Budget submit reports, keep records, or provide risk mitigant in all relevant
(OMB) control number. information to a third party. The OCC is jurisdictions.
The OCC is soliciting comment asking that OMB extend its approval of Section 3.41(c)(2)(i) requires that an
concerning the renewal of its the following collection: institution demonstrate its
information collection titled ‘‘Capital Title: Capital Adequacy Standards. comprehensive understanding of a
Adequacy Standards.’’ The OCC also is OMB Control No.: 1557–0318. securitization exposure by conducting
giving notice that it has submitted the Frequency of Response: On occasion. and documenting an analysis of the risk
collection to OMB for review. Affected Public: Business or other for- characteristics of each securitization
DATES: Comments must be submitted on profit. exposure prior to its acquisition, taking
or before July 5, 2017. into account a number of specified
ADDRESSES: Because paper mail in the
Section-by-Section-Analysis
considerations.
Washington, DC area and at the OCC is Twelve CFR part 3 sets forth the In the case where an institution
subject to delay, commenters are OCC’s minimum capital requirements provides non-contractual support to a
encouraged to submit comments by and overall capital adequacy standards securitization, § 3.42(e)(2) requires the
email, if possible. Comments may be for national banks and federal savings institution to publicly disclose that it
sent to: Legislative and Regulatory associations (institutions). has provided implicit support to a
Activities Division, Office of the Section 3.3(c) allows for the securitization and the risk-based capital
Comptroller of the Currency, Attention: recognition of netting across multiple impact to the bank of providing such
asabaliauskas on DSKBBXCHB2PROD with NOTICES
1557–0318, 400 7th Street SW., Suite types of transactions or agreements if an implicit support.
3E–218, Washington, DC 20219. In institution obtains a written legal Section 3.62 sets forth disclosure
addition, comments may be sent by fax opinion verifying the validity and requirements related to the capital
to (571) 465–4326 or by electronic mail enforceability of the agreement under requirements of an institution. These
to prainfo@occ.treas.gov. You may certain circumstances and maintains requirements apply to an institution
personally inspect and photocopy sufficient written documentation of this with total consolidated assets of $50
comments at the OCC, 400 7th Street legal review. billion or more that is not a
SW., Washington, DC 20219. For Section 3.22(h)(2)(iii)(A) permits the consolidated subsidiary of an entity that
security reasons, the OCC requires that use of a conservative estimate of the is itself subject to Basel III disclosures.
VerDate Sep<11>2014 17:31 Jun 02, 2017 Jkt 241001 PO 00000 Frm 00159 Fmt 4703 Sfmt 4703 E:\FR\FM\05JNN1.SGM 05JNN1](https://thefederalregister.org/doc/82_FR_26019/page/1.svg)
![25916 Federal Register / Vol. 82, No. 106 / Monday, June 5, 2017 / Notices
profile, condition, and complexity and validity of the methodology and comments at the OCC, 400 7th Street,
are developing a proposal to simplify assumptions used; SW., Washington, DC 20219. For
the regulatory capital rules in a manner (c) Ways to enhance the quality, security reasons, the OCC requires that
that maintains safety and soundness and utility, and clarity of the information to visitors make an appointment to inspect
the quality and quantity of regulatory be collected; and comments. You may do so by calling
capital in the banking system. Such (d) Ways to minimize the burden of (202) 649–6700 or, for persons who are
amendments may include (1) replacing information collections on respondents, deaf or hard of hearing, TTY, (202) 649–
the framework’s complex treatment of including through the use of automated 5597. Upon arrival, visitors will be
high volatility commercial real estate collection techniques or other forms of required to present valid government-
exposures with a more straightforward information technology. issued photo identification and submit
treatment for most acquisition, Dated: May 30, 2017. to security screening in order to inspect
development, or construction loans; (2) Karen Solomon, and photocopy comments.
simplifying the current regulatory Deputy Chief Counsel, Office of the All comments received, including
capital treatment for mortgage servicing Comptroller of the Currency. attachments and other supporting
assets, timing difference deferred tax [FR Doc. 2017–11548 Filed 6–2–17; 8:45 am] materials, are part of the public record
assets, and holdings of regulatory and subject to public disclosure. Do not
BILLING CODE 4810–33–P
capital instruments issued by financial include any information in your
institutions; and (3) simplifying the comment or supporting materials that
current limitations on minority interests DEPARTMENT OF THE TREASURY you consider confidential or
in regulatory capital. The agencies inappropriate for public disclosure.
would seek industry comment on these Office of the Comptroller of the FOR FURTHER INFORMATION CONTACT:
amendments through the normal notice Currency Shaquita Merritt, OCC Clearance
and comment process. Officer, (202) 649–5490, Legislative and
The OCC regularly monitors and Agency Information Collection Regulatory Activities Division, Office of
analyzes developments in the banking Activities: Information Collection the Comptroller of the Currency, 400 7th
industry to ensure that the revised Renewal; Comment Request; Street SW., Washington, DC 20219.
capital rules appropriately reflect risks Disclosure Requirements Associated
faced by banking organizations and SUPPLEMENTARY INFORMATION: Under the
With Supplementary Leverage Ratio
considers many issues before PRA (44 U.S.C. 3501–3520), federal
determining whether a change to the AGENCY: Office of the Comptroller of the agencies must obtain approval from the
revised capital rules is appropriate. The Currency (OCC), Treasury. OMB for each collection of information
safety and soundness of community ACTION: Notice and request for comment. that they conduct or sponsor.
banks depends, in part, on having and ‘‘Collection of information’’ is defined
SUMMARY: The OCC, as part of its in 44 U.S.C. 3502(3) and 5 CFR
maintaining sufficient regulatory
continuing effort to reduce paperwork 1320.3(c) to include agency requests or
capital. More than 500 banking
and respondent burden, invites the requirements that members of the public
organizations, mostly community banks,
general public and other federal submit reports, keep records, or provide
failed in the aftermath of the financial
agencies to take this opportunity to information to a third party. Section
crisis largely because they did not have
comment on a continuing information 3506(c)(2)(A) of title 44 requires federal
sufficient capital relative to their risk.
collection as required by the Paperwork agencies to provide a 60-day notice in
To assist community banks, the
Reduction Act of 1995 (PRA). the Federal Register concerning each
agencies published a community bank
In accordance with the requirements proposed collection of information,
guide to help community banks
of the PRA, the OCC may not conduct including each proposed renewal of an
understand the sections of the revised
or sponsor, and the respondent is not existing collection of information,
2013 capital rules most relevant to their
required to respond to, an information before submitting the collection to OMB
operations.5 The OCC has also
collection unless it displays a currently for approval. To comply with this
published a number of guidance valid Office of Management and Budget
documents to assist banks in their requirement, the OCC is publishing
(OMB) control number. notice of the renewal of the collection
capital planning efforts 6 and intends to The OCC is soliciting comment
publish revisions to its capital of information set forth in this
concerning the renewal of its document.
handbook to make guidance information collection titled ‘‘Disclosure
publications and regulatory revisions The OCC is proposing to extend OMB
Requirements Associated with approval of the following information
available in one place. Supplementary Leverage Ratio.’’
Comments continue to be invited on: collection:
DATES: Comments must be submitted on Title: Disclosure Requirements
(a) Whether the collections of
or before August 4, 2017. Associated with Supplementary
information are necessary for the proper
ADDRESSES: Because paper mail in the Leverage Ratio.
performance of the OCC’s functions,
including whether the information has Washington, DC area and at the OCC is OMB Control No.: 1557–0322.
practical utility; subject to delay, commenters are Description: All banking organizations
(b) The accuracy of the OCC’s encouraged to submit comments by that are subject to the agencies’
estimates of the burden of the email, if possible. Comments may be advanced approaches risk-based capital
asabaliauskas on DSKBBXCHB2PROD with NOTICES
information collections, including the sent to: Legislative and Regulatory rules (advanced approaches banking
Activities Division, Office of the organizations), as defined in the 2013
5 ‘‘New Capital Rule; Community Bank Guide,’’ Comptroller of the Currency, Attention: revised capital rule,1 are required to
www.occ.gov/news-issuances/news-releases/2013/ 1557–0322, 400 7th Street SW., Suite disclose their supplementary leverage
2013-110b.pdf. 3E–218, Washington, DC 20219. In ratios.2 Advanced approaches banking
6 For example, OCC bulletin 2012–16, (June 7,
addition, comments may be sent by fax organizations must report their
2012) ‘‘Capital Planning: Guidance for Evaluating
Capital Planning and Adequacy,’’ https://
to (571) 465–4326 or by electronic mail
www.occ.gov/news-issuances/bulletins/2012/ to prainfo@occ.tress.gov. You may 1 12 CFR 3.100(b)(1).
bulletin-2012-16.html. personally inspect and photocopy 2 12 CFR 3.10(c), 3.172(d), and 3.173.
VerDate Sep<11>2014 17:31 Jun 02, 2017 Jkt 241001 PO 00000 Frm 00162 Fmt 4703 Sfmt 4703 E:\FR\FM\05JNN1.SGM 05JNN1](https://thefederalregister.org/doc/82_FR_26019/page/4.svg)
Document Created: 2018-11-14 10:00:54
Document Modified: 2018-11-14 10:00:54
| 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 submitted on or before July 5, 2017. | |
| Contact | Shaquita Merritt, OCC 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 | 82 FR 25913 |
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