Agency Information Collection Activities; Information Collection Renewal; Submission for OMB Review; Funding and Liquidity Risk Management, 33735-33737 [2016-12581]
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sradovich on DSK3TPTVN1PROD with NOTICES
Federal Register / Vol. 81, No. 103 / Friday, May 27, 2016 / Notices
electronic mail to prainfo@occ.treas.gov.
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, 1557–0182, U.S. Office of
Management and Budget, 725 17th
Street NW., #10235, Washington, DC
20503, or by email to: oira submission@
omb.eop.gov.
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., Suite 3E–218, Mail Stop
9W–11, Washington, DC 20219.
SUPPLEMENTARY INFORMATION: The OCC
requests that OMB extend its approval
of the following collection:
Title: Disclosure of Financial and
Other Information by National Banks.
OMB Control No.: 1557–0182.
Type of Review: Extension, without
revision, of a currently approved
collection.
Description: The collections of
information are found in 12 CFR 18.3,
18.4, and 18.8. Section 18.3 requires the
preparation of an annual disclosure
statement and specifies when a national
bank must make the statement available
to shareholders. Section 18.4 outlines
what information the disclosure
statement must contain and provides
that a national bank may, at its option,
supplement its annual disclosure
statement with a narrative discussion.
Lastly, § 18.8 requires that a national
bank promptly mail or otherwise
furnish its annual disclosure statement
upon request.
The information collected under part
18 is also collected through the
Consolidated Reports of Condition and
Income. Therefore, the OCC has
VerDate Sep<11>2014
18:00 May 26, 2016
Jkt 238001
proposed to remove part 18 in its
entirety, 81 FR 13607 (March 14, 2016).
Following issuance of a final rule
removing part 18, the OCC will
discontinue this information collection.
Affected Public: Businesses or other
for-profit.
Burden Estimates:
Estimated Number of Respondents:
1,100.
Estimated Total Annual Burden: 555
hours.
Frequency of Response: On occasion.
Comments: On February 25, 2016, the
OCC issued a notice for 60 days of
comment concerning the collection, 81
FR 9584. The OCC received one
comment from an individual.
The commenter questioned the utility
and benefit of the information collection
compared to the burden because the
rule requires information that is already
available through OCC’s program of
periodic and financial disclosure and
other sources. The commenter suggested
that the rule should be replaced with
easy to understand measures or
statistics or rewritten to minimize the
burden and enhance the quality and
clarity of the information collected. The
information collected is available
through the Consolidated Reports of
Condition of Income and, as indicated
above, this information collection will
be discontinued following the issuance
of a final rule removing part 18.
The commenter stated that the OCC
improves the quality, utility, and clarity
of information when it attentively
responds to all significant public
comments before finalizing rules. The
commenter also believes that when the
OCC leaves unclear whether it
considered comments, the public record
is incomplete and the OCC creates the
perception that it makes final decisions
on rules without considering the data,
views, and arguments of others. The
OCC carefully considers all comments
received.
Comments continue to be invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
OCC, including whether the information
has practical utility;
(b) The accuracy of the OCC’s
estimate of the information collection
burden;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
the collection on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
PO 00000
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33735
maintenance, and purchase of services
to provide information.
Dated: May 23, 2016.
Mary Hoyle Gottlieb,
Regulatory Specialist, Legislative and
Regulatory Activities Division.
[FR Doc. 2016–12584 Filed 5–26–16; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
Agency Information Collection
Activities; Information Collection
Renewal; Submission for OMB Review;
Funding and Liquidity Risk
Management
Office of the Comptroller of the
Currency (OCC), Treasury.
ACTION: Notice and request for comment.
AGENCY:
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 renewal of its information
collection titled, ‘‘Funding and
Liquidity Risk Management.’’ The OCC
also is giving notice that it has sent the
collection to OMB for review.
DATES: Comments must be received by
June 27, 2016.
ADDRESSES: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by
email, if possible. Comments may be
sent to: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, Attention:
1557–0244, 400 7th Street SW., Suite
3E–218, Mail Stop 9W–11, Washington,
DC 20219. In addition, comments may
be sent by fax to (571) 465–4326 or by
electronic mail to prainfo@occ.treas.gov.
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,
SUMMARY:
E:\FR\FM\27MYN1.SGM
27MYN1
33736
Federal Register / Vol. 81, No. 103 / Friday, May 27, 2016 / Notices
(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, 1557–0244, U.S. Office of
Management and Budget, 725 17th
Street NW., #10235, Washington, DC
20503, or by email to:
oiralsubmission@omb.eop.gov.
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., Suite 3E–218, Mailstop 9W–
11, Washington, DC 20219.
SUPPLEMENTARY INFORMATION: The OCC
requests that OMB extend its approval
of the following collection:
Title: Funding and Liquidity Risk
Management.
OMB Control No.: 1557–0244.
Type of Review: Extension, without
revision, of a currently approved
collection.
Description: The Interagency Policy
Statement on Funding and Liquidity
Risk Management 1 (Policy Statement)
summarizes the principles of sound
liquidity risk management that the
Federal banking agencies have issued in
the past 2 and, where appropriate,
harmonizes these principles with the
international statement issued by the
Basel Committee on Banking
Supervision titled ‘‘Principles for Sound
Liquidity Risk Management and
1 75
FR 13656 (Mar. 22, 2010).
national banks and Federal savings
associations, see the Comptroller’s Handbook on
Liquidity. For state member banks and bank holding
companies, see the Federal Reserve’s Commercial
Bank Examination Manual (section 4020), Bank
Holding Company Supervision Manual (section
4010), and Trading and Capital Markets Activities
Manual (section 2030). For state non-member
banks, see the FDIC’s Revised Examination
Guidance for Liquidity and Funds Management
(Trans. No. 2002–01) (Nov. 19, 2001), and Financial
Institution Letter 84–2008, Liquidity Risk
Management (August 2008). For Federally insured
credit unions, see Letter to Credit Unions No. 02–
CU–05, Examination Program Liquidity
Questionnaire (March 2002). See also Basel
Committee on Banking Supervision, ‘‘Principles for
Sound Liquidity Risk Management and
Supervision’’ (September 2008).
sradovich on DSK3TPTVN1PROD with NOTICES
2 For
VerDate Sep<11>2014
18:00 May 26, 2016
Jkt 238001
Supervision.’’ 3 The Policy Statement
emphasizes supervisory expectations for
all depository institutions including
banks, savings associations, and credit
unions.
Section 14 of the Policy Statement
provides that financial institutions
should consider liquidity costs, benefits,
and risks in strategic planning and
budgeting processes. Significant
business activities should be evaluated
for liquidity risk exposure as well as
profitability. More complex and
sophisticated financial institutions
should incorporate liquidity costs,
benefits, and risks in the internal
product pricing, performance
measurement, and new product
approval process for all material
business lines, products, and activities.
Incorporating the cost of liquidity into
these functions should align the risktaking incentives of individual business
lines with the liquidity risk exposure
their activities create for the institution
as a whole. The quantification and
attribution of liquidity risks should be
explicit and transparent at the line
management level and should include
consideration of how liquidity would be
affected under stressed conditions.
Section 20 of the Policy Statement
states that liquidity risk reports should
provide aggregate information with
sufficient supporting detail to enable
management to assess the sensitivity of
the institution to changes in market
conditions, its own financial
performance, and other important risk
factors. Institutions also should report
on the use of and availability of
government support, such as lending
and guarantee programs, and
implications on liquidity positions,
particularly since these programs are
generally temporary or reserved as a
source for contingent funding.
Affected Public: Businesses or other
for-profit.
Frequency: On occasion.
Estimated Burden: The OCC estimates
the burden of this collection of
information on national banks and
Federal savings associations as follows:
Estimated Number of Respondents:
1,469 total, 15 large (over $100 billion
in assets), 46 mid-size ($10–$100
billion), 1,408 small (less than $10
billion).
Total Estimated Burden Hours:
102,496 hours.
On February 29, 2016, the OCC
published a notice for 60 days of
3 Basel Committee on Banking Supervision,
‘‘Principles for Sound Liquidity Risk Management
and Supervision,’’ September 2008. See
www.bis.org/publ/bcbs144.htm. Federally insured
credit unions are not directly referenced in the
principles issued by the Basel Committee.
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
comment concerning the collection, 81
FR 10364. One comment was received
from an individual.
The commenter stated that the
collection is burdensome and that the
regulatory expectations have no
practical utility. Specifically, the
commenter questioned whether there is
any empirical evidence showing the
association between inaccurate
performance measurements and
liquidity risk and whether it should be
labeled operational risk instead. The
commenter noted the lack of guidance
on how product pricing, performance
measurement, and internal approval
processes impact liquidity risk, which
they believe is likely due to the lack of
connection between these factors and an
institution’s ability to meet its
obligations. The commenter suggested
that the OCC remove the portions of the
guidance regarding the risk in internal
product pricing, performance
measurement, and new product
approval process and replace them with
definitions, explanations, or examples.
The comprehensive set of reports
used by banks to identify, measure,
monitor and control liquidity risk have
been shown to be effective by helping to
identify risk so that management can
implement appropriate mitigation
actions. An institution’s obligations, and
the funding sources used to meet those
obligations, depend significantly on its
business mix, balance-sheet structure,
and the cash flow profiles of its on- and
off-balance sheet obligations. A
necessary part of controlling liquidity
risk is understanding how liquidity risk
can be created. While it is prudent for
banks to understand the product
pricing, performance measurement and
internal approval processes, the
agencies restricted those expectations to
complex and sophisticated
organizations.
(a) Whether the information
collections are necessary for the proper
performance of the functions of the
OCC, including whether the information
has practical utility;
(b) The accuracy of the OCC’s
estimate of the information collection
burden;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
information collections on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of the
services necessary to provide the
required information.
E:\FR\FM\27MYN1.SGM
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Federal Register / Vol. 81, No. 103 / Friday, May 27, 2016 / Notices
Dated: May 23, 2016.
Mary Hoyle Gottlieb,
Regulatory Specialist, Legislative and
Regulatory Activities Division.
Department of the Treasury’s continuing
effort to increase the efficiency and
effectiveness of its anti-money
laundering and counter-terrorist
financing policies.
Affected Public: Businesses or other
for-profits; State, local, or tribal
governments.
Estimated Total Annual Burden
Hours: 1,087,236.
[FR Doc. 2016–12581 Filed 5–26–16; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF THE TREASURY
Submission for OMB Review;
Comment Request
Brenda Simms,
Treasury PRA Clearance Officer.
May 24, 2016.
sradovich on DSK3TPTVN1PROD with NOTICES
The Department of the Treasury will
submit the following information
collection request to the Office of
Management and Budget (OMB) for
review and clearance in accordance
with the Paperwork Reduction Act of
1995, Public Law 104–13, on or after the
date of publication of this notice.
DATES: Comments should be received on
or before June 27, 2016 to be assured of
consideration.
ADDRESSES: Send comments regarding
the burden estimates, or any other
aspect of the information collection,
including suggestions for reducing the
burden, to (1) Office of Information and
Regulatory Affairs, Office of
Management and Budget, Attention:
Desk Officer for Treasury, New
Executive Office Building, Room 10235,
Washington, DC 20503, or email at
OIRA_Submission@OMB.EOP.gov and
(2) Treasury PRA Clearance Officer,
1750 Pennsylvania Ave. NW., Suite
8117, Washington, DC 20220, or email
at PRA@treasury.gov.
FOR FURTHER INFORMATION CONTACT:
Copies of the submission may be
obtained by emailing PRA@treasury.gov,
calling (202) 622–1295, or viewing the
entire information collection request at
www.reginfo.gov.
Financial Crimes Enforcement Network
(FinCEN)
OMB Control Number: 1506–0049.
Type of Review: Extension of a
previously approved collection.
Title: Expansion of Special
Information Sharing Procedures to Deter
Money Laundering and Terrorist
Activity.
Abstract: The relevant Bank Secrecy
Act (‘‘BSA’’) information sharing rules
that allow certain foreign law
enforcement agencies, and State and
local law enforcement agencies, to
submit requests for information to
financial institutions. The rule also
clarifies that FinCEN itself, on its own
behalf and on behalf of other
appropriate components of the
Department of the Treasury, may submit
such requests. Modification of the
information sharing rules is a part of the
VerDate Sep<11>2014
18:00 May 26, 2016
Jkt 238001
[FR Doc. 2016–12625 Filed 5–26–16; 8:45 am]
BILLING CODE 4810–02–P
DEPARTMENT OF THE TREASURY
Submission for OMB Review;
Comment Request
May 24, 2016.
The Department of the Treasury will
submit the following information
collection requests to the Office of
Management and Budget (OMB) for
review and clearance in accordance
with the Paperwork Reduction Act of
1995, Public Law 104–13, on or after the
date of publication of this notice.
DATES: Comments should be received on
or before June 27, 2016 to be assured of
consideration.
ADDRESSES: Send comments regarding
the burden estimates, or any other
aspect of the information collections,
including suggestions for reducing the
burden, to (1) Office of Information and
Regulatory Affairs, Office of
Management and Budget, Attention:
Desk Officer for Treasury, New
Executive Office Building, Room 10235,
Washington, DC 20503, or email at
OIRA_Submission@OMB.EOP.gov and
(2) Treasury PRA Clearance Officer,
1750 Pennsylvania Ave. NW., Suite
8117, Washington, DC 20220, or email
at PRA@treasury.gov.
FOR FURTHER INFORMATION CONTACT:
Copies of the submissions may be
obtained by emailing PRA@treasury.gov,
calling (202) 622–1295, or viewing the
entire information collection request at
www.reginfo.gov.
Alcohol and Tobacco Tax and Trade
Bureau (TTB)
OMB Control Number: 1513–0093.
Type of Review: Revision of a
currently approved collection.
Title: Supporting Data for
Nonbeverage Drawback Claims.
Form: TTB F 5600.38.
Abstract: TTB uses the information
collected on form TTB F 5600.38 to
determine if a taxpayer meets the
criteria to be granted an extension of the
time period to make their tax payment
PO 00000
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Fmt 4703
Sfmt 4703
33737
because of circumstances beyond the
taxpayer’s control. TTB is increasing the
estimated number of respondents and
the resulting total annual burden hours
associated with this information
collection due to an increase in the
number of industry members requesting
an extension of time for payment of tax.
Affected Public: Businesses or other
for-profits.
Estimated Total Annual Burden
Hours: 8.
OMB Control Number: 1513–0098.
Type of Review: Revision of a
currently approved collection.
Title: Record of Operations—Importer
of Tobacco Products or Processed
Tobacco.
Form: TTB F 5451.2.
Abstract: Manufacturers of
nonbeverage alcohol products use TTB
F 5451.2 to submit the data required to
support claims for drawback of Federal
alcohol excise taxes. TTB uses the data
collected on this form to verify claims
for drawback of taxes and, hence, to
protect the revenue. This form is used
to verify that all distilled spirits can be
accounted for and that drawback is paid
only in the amount prescribed by law.
TTB is decreasing the estimated number
of respondents and the resulting total
annual burden hours associated with
this information collection due to a
decrease in the number of drawback
claims TTB receives.
Affected Public: Businesses or other
for-profits.
Estimated Total Annual Burden
Hours: 2,272.
OMB Control Number: 1513–0106.
Type of Review: Revision of a
currently approved collection.
Title: Application, Permit and
Report—Wine and Beer (Puerto Rico),
and Application, Permit and Report—
Distilled Spirits Products (Puerto Rico).
Abstract: Under the authority of the
Internal Revenue Code at 26 U.S.C.
5741, the TTB regulations require
importers of tobacco products or
processed tobacco to maintain records
of physical receipts and disposition of
tobacco products or processed tobacco.
The respondents use these usual and
customary business records to prepare
TTB Form 5220.6, Monthly Report—
Tobacco Products or Processed Tobacco
(approved under OMB control number
1513–0107). TTB is decreasing the
estimated number of respondents to
reflect a decrease in the number of
importers of tobacco products or
processed tobacco regulated by TTB.
Affected Public: Businesses or other
for-profits.
E:\FR\FM\27MYN1.SGM
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]]>Agencies
[Federal Register Volume 81, Number 103 (Friday, May 27, 2016)]
[Notices]
[Pages 33735-33737]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12581]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities; Information Collection
Renewal; Submission for OMB Review; Funding and Liquidity Risk
Management
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 renewal of its information
collection titled, ``Funding and Liquidity Risk Management.'' The OCC
also is giving notice that it has sent the collection to OMB for
review.
DATES: Comments must be received by June 27, 2016.
ADDRESSES: Because paper mail in the Washington, DC area and at the OCC
is subject to delay, commenters are encouraged to submit comments by
email, if possible. Comments may be sent to: Legislative and Regulatory
Activities Division, Office of the Comptroller of the Currency,
Attention: 1557-0244, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to
(571) 465-4326 or by electronic mail to prainfo@occ.treas.gov. 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,
[[Page 33736]]
(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, 1557-0244, U.S. Office of Management and Budget, 725 17th
Street NW., #10235, Washington, DC 20503, or by email to:
oira_submission@omb.eop.gov.
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., Suite 3E-218, Mailstop 9W-11, Washington, DC 20219.
SUPPLEMENTARY INFORMATION: The OCC requests that OMB extend its
approval of the following collection:
Title: Funding and Liquidity Risk Management.
OMB Control No.: 1557-0244.
Type of Review: Extension, without revision, of a currently
approved collection.
Description: The Interagency Policy Statement on Funding and
Liquidity Risk Management \1\ (Policy Statement) summarizes the
principles of sound liquidity risk management that the Federal banking
agencies have issued in the past \2\ and, where appropriate, harmonizes
these principles with the international statement issued by the Basel
Committee on Banking Supervision titled ``Principles for Sound
Liquidity Risk Management and Supervision.'' \3\ The Policy Statement
emphasizes supervisory expectations for all depository institutions
including banks, savings associations, and credit unions.
---------------------------------------------------------------------------
\1\ 75 FR 13656 (Mar. 22, 2010).
\2\ For national banks and Federal savings associations, see the
Comptroller's Handbook on Liquidity. For state member banks and bank
holding companies, see the Federal Reserve's Commercial Bank
Examination Manual (section 4020), Bank Holding Company Supervision
Manual (section 4010), and Trading and Capital Markets Activities
Manual (section 2030). For state non-member banks, see the FDIC's
Revised Examination Guidance for Liquidity and Funds Management
(Trans. No. 2002-01) (Nov. 19, 2001), and Financial Institution
Letter 84-2008, Liquidity Risk Management (August 2008). For
Federally insured credit unions, see Letter to Credit Unions No. 02-
CU-05, Examination Program Liquidity Questionnaire (March 2002). See
also Basel Committee on Banking Supervision, ``Principles for Sound
Liquidity Risk Management and Supervision'' (September 2008).
\3\ Basel Committee on Banking Supervision, ``Principles for
Sound Liquidity Risk Management and Supervision,'' September 2008.
See www.bis.org/publ/bcbs144.htm. Federally insured credit unions
are not directly referenced in the principles issued by the Basel
Committee.
---------------------------------------------------------------------------
Section 14 of the Policy Statement provides that financial
institutions should consider liquidity costs, benefits, and risks in
strategic planning and budgeting processes. Significant business
activities should be evaluated for liquidity risk exposure as well as
profitability. More complex and sophisticated financial institutions
should incorporate liquidity costs, benefits, and risks in the internal
product pricing, performance measurement, and new product approval
process for all material business lines, products, and activities.
Incorporating the cost of liquidity into these functions should align
the risk-taking incentives of individual business lines with the
liquidity risk exposure their activities create for the institution as
a whole. The quantification and attribution of liquidity risks should
be explicit and transparent at the line management level and should
include consideration of how liquidity would be affected under stressed
conditions.
Section 20 of the Policy Statement states that liquidity risk
reports should provide aggregate information with sufficient supporting
detail to enable management to assess the sensitivity of the
institution to changes in market conditions, its own financial
performance, and other important risk factors. Institutions also should
report on the use of and availability of government support, such as
lending and guarantee programs, and implications on liquidity
positions, particularly since these programs are generally temporary or
reserved as a source for contingent funding.
Affected Public: Businesses or other for-profit.
Frequency: On occasion.
Estimated Burden: The OCC estimates the burden of this collection
of information on national banks and Federal savings associations as
follows:
Estimated Number of Respondents: 1,469 total, 15 large (over $100
billion in assets), 46 mid-size ($10-$100 billion), 1,408 small (less
than $10 billion).
Total Estimated Burden Hours: 102,496 hours.
On February 29, 2016, the OCC published a notice for 60 days of
comment concerning the collection, 81 FR 10364. One comment was
received from an individual.
The commenter stated that the collection is burdensome and that the
regulatory expectations have no practical utility. Specifically, the
commenter questioned whether there is any empirical evidence showing
the association between inaccurate performance measurements and
liquidity risk and whether it should be labeled operational risk
instead. The commenter noted the lack of guidance on how product
pricing, performance measurement, and internal approval processes
impact liquidity risk, which they believe is likely due to the lack of
connection between these factors and an institution's ability to meet
its obligations. The commenter suggested that the OCC remove the
portions of the guidance regarding the risk in internal product
pricing, performance measurement, and new product approval process and
replace them with definitions, explanations, or examples.
The comprehensive set of reports used by banks to identify,
measure, monitor and control liquidity risk have been shown to be
effective by helping to identify risk so that management can implement
appropriate mitigation actions. An institution's obligations, and the
funding sources used to meet those obligations, depend significantly on
its business mix, balance-sheet structure, and the cash flow profiles
of its on- and off-balance sheet obligations. A necessary part of
controlling liquidity risk is understanding how liquidity risk can be
created. While it is prudent for banks to understand the product
pricing, performance measurement and internal approval processes, the
agencies restricted those expectations to complex and sophisticated
organizations.
(a) Whether the information collections are necessary for the
proper performance of the functions of the OCC, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimate of the information
collection burden;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of information collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of the services necessary to provide the
required information.
[[Page 33737]]
Dated: May 23, 2016.
Mary Hoyle Gottlieb,
Regulatory Specialist, Legislative and Regulatory Activities Division.
[FR Doc. 2016-12581 Filed 5-26-16; 8:45 am]
BILLING CODE 4810-33-P
