Agency Information Collection Activities: Submission for OMB Review; Comment Request (3064-0001, -0174, -0188 & -0191), 39044-39046 [2016-14120]
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39044
Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Notices
Dated: June 7, 2016.
Thomas H. Brennan,
Deputy Director, EPA Science Advisory Staff
Office.
Dated: June 13, 2016.
Bernadette B. Wilson,
Acting Executive Officer, Executive
Secretariat.
[FR Doc. 2016–14176 Filed 6–14–16; 8:45 am]
[FR Doc. 2016–14236 Filed 6–13–16; 11:15 am]
BILLING CODE 6560–50–P
BILLING CODE 6570–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Agency Information Collection
Activities: Submission for OMB
Review; Comment Request (3064–
0001, –0174, –0188 & –0191)
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice and request for comment.
AGENCY:
EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
FEDERAL DEPOSIT INSURANCE
CORPORATION
Monday, June 20, 2016,
9:30 a.m. Eastern Time.
TIME AND DATE:
Jacqueline A. Berrien Training
Center on the First Floor of the EEOC
Office Building, 131 ‘‘M’’ Street NE.,
Washington, DC 20507.
Notice to All Interested Parties of the
Termination of the Receivership of
10009 First Heritage Bank, N.A.,
Newport Beach, California
PLACE:
STATUS:
The meeting will be open to the
public.
MATTERS TO BE CONSIDERED:
ehiers on DSK5VPTVN1PROD with NOTICES
Open Session
1. Announcement of Notation Votes,
and
2. Rebooting Workplace Harassment
Prevention: Key Findings from the
Report of Commissioners Chai R.
Feldblum and Victoria A. Lipnic, CoChairs of the EEOC’s Select Task Force
on the Study of Harassment in the
Workplace.
Note: In accordance with the
Sunshine Act, the meeting will be open
to public observation of the
Commission’s deliberations and voting.
Seating is limited and it is suggested
that visitors arrive 30 minutes before the
meeting in order to be processed
through security and escorted to the
meeting room. (In addition to
publishing notices on EEOC
Commission meetings in the Federal
Register, the Commission also provides
information about Commission meetings
on its Web site, www.eeoc.gov., and
provides a recorded announcement a
week in advance on future Commission
sessions.)
Please telephone (202) 663–7100
(voice) and (202) 663–4074 (TTY) at any
time for information on these meetings.
The EEOC provides sign language
interpretation and Communication
Access Realtime Translation (CART)
services at Commission meetings for the
hearing impaired. Requests for other
reasonable accommodations may be
made by using the voice and TTY
numbers listed above.
NOTICE IS HEREBY GIVEN that the
Federal Deposit Insurance Corporation
(‘‘FDIC’’) as Receiver for First Heritage
Bank, N.A., Newport Beach, California
(‘‘the Receiver’’) intends to terminate its
receivership for said institution. The
FDIC was appointed receiver of First
Heritage Bank, N.A., on July 25, 2008.
The liquidation of the receivership
assets has been completed. To the extent
permitted by available funds and in
accordance with law, the Receiver will
be making a final dividend payment to
proven creditors.
Based upon the foregoing, the
Receiver has determined that the
continued existence of the receivership
will serve no useful purpose.
Consequently, notice is given that the
receivership shall be terminated, to be
effective no sooner than thirty days after
the date of this Notice. If any person
wishes to comment concerning the
termination of the receivership, such
comment must be made in writing and
sent within thirty days of the date of
this Notice to: Federal Deposit
Insurance Corporation, Division of
Resolutions and Receiverships,
Attention: Receivership Oversight
Department 34.6, 1601 Bryan Street,
Dallas, TX 75201.
No comments concerning the
termination of this receivership will be
considered which are not sent within
this time frame.
Dated: June 9, 2016.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2016–14051 Filed 6–14–16; 8:45 am]
BILLING CODE 6714–01–P
CONTACT PERSON FOR MORE INFORMATION:
Bernadette B. Wilson, Acting Executive
Officer on (202) 663–4077.
VerDate Sep<11>2014
15:15 Jun 14, 2016
The FDIC, 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 the renewal of existing
information collections, as required by
the Paperwork Reduction Act of 1995.
On April 6, 2016, (81 FR 19971), the
FDIC requested comment for 60 days on
a proposal to renew the information
collections described below. No
comments were received. The FDIC
hereby gives notice of its plan to submit
to OMB a request to approve the
renewal of these collections, and again
invites comment on this renewal.
DATES: Comments must be submitted on
or before July 15, 2016.
ADDRESSES: Interested parties are
invited to submit written comments to
the FDIC by any of the following
methods:
• https://www.FDIC.gov/regulations/
laws/federal/.
• Email: comments@fdic.gov Include
the name of the collection in the subject
line of the message.
• Mail: Gary A. Kuiper
(202.898.3877), Counsel, Room MB–
3016, or Manny Cabeza, (202.898.3767),
Counsel, Room MB–3105, Federal
Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429.
• Hand Delivery: Comments may be
hand-delivered to the guard station at
the rear of the 17th Street Building
(located on F Street), on business days
between 7:00 a.m. and 5:00 p.m.
All comments should refer to the
relevant OMB control number. A copy
of the comments may also be submitted
to the OMB desk officer for the FDIC:
Office of Information and Regulatory
Affairs, Office of Management and
Budget, New Executive Office Building,
Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Gary
A. Kuiper or Manny Cabeza, at the FDIC
address above.
SUPPLEMENTARY INFORMATION: Proposal
to renew the following currentlyapproved collections of information:
1. Title: Charter and Federal Deposit
Insurance Application.
OMB Number: 3064–0001.
SUMMARY:
Sunshine Act Notice
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Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Notices
Affected Public: Banks or savings
associations wishing to become FDIC
insured depository institutions.
Annual Number of Respondents: 42.
Frequency of Response: On occasion.
Estimated Time per Response: 125
hours.
Total Annual Burden: 5,250 hours.
General Description: The Federal
Deposit Insurance Act requires financial
Affected Public: Insured state
nonmember banks and state savings
associations.
Frequency of Response: Occasionally
(Paragraph 14); Quarterly (Paragraph
20).
Annual Number of Respondents:
3,947.
Burden Estimate:
institutions to apply to the FDIC to
obtain deposit insurance. This
collection provides FDIC with the
information needed to evaluate the
applications.
2. Title: Interagency Guidance on
Funding and Liquidity Risk
Management.
OMB Number: 3064–0174.
Average
hours per
response
Number
of respondents
Paragraph 14 (Record Keeping):
Large Institutions(over $20 billion in assets) ............................................
Mid-size Institutions($1 to $20 billion in assets) ......................................
Small Institutions(less than $1 billion in assets) ......................................
Responses
per year
Total
hours
19
329
3,599
720
240
80
1
1
1
13,680
78,960
287,920
Paragraph 14 Subtotal ......................................................................
Paragraph 20 (Reporting):
All supervised institutions .........................................................................
3,947
........................
........................
380,560
3,947
4
12
189,456
Total Burden Hours ....................................................................
........................
........................
........................
570,016
General Description: The information
collection includes reporting and
recordkeeping requirements related to
sound risk management principles
applicable to insured depository
institutions. To enable an institution
and its supervisor to evaluate the
liquidity risk exposure of an
institution’s individual business lines
and for the institution as a whole, the
guidance summarizes principles of
sound liquidity risk management and
advocates the establishment of policies
and procedures that consider liquidity
costs, benefits, and risks in strategic
planning. In addition, the guidance
encourages the use of liquidity risk
reports that provide detailed and
aggregate information on items such as
cash flow gaps, cash flow projections,
assumptions used in cash flow
projections, asset and funding
concentrations, funding availability, and
early warning or risk indicators. This is
intended to enable management to
assess an institution’s sensitivity to
Number of
respondents
Review and Provide Copy of Full Interior Appraisal (reporting burden):
Non-automated responders ......................................................................
Automated responders .............................................................................
changes in market conditions, the
institution’s financial performance, and
other important risk factors.
3. Title: Appraisals for Higher-Priced
Mortgage Loans.
OMB Number: 3064–0188.
Affected Public: Insured state
nonmember banks and state savings
associations.
Estimated Number of Respondents:
2,428.
Frequency of Response: Occasionally.
Burden Estimate:
Number of
responses
Hours
per response
Total
burden
hours
13
13
.25
.08
2,629
1,684
Subtotal .............................................................................................
Investigate and Verify Requirement for Second Appraisal (record keeping
burden):
Non-automated responders ......................................................................
Automated responders .............................................................................
2,428
........................
........................
4,313
809
1,619
8
8
.25
.08
1,618
1,036
Subtotal .............................................................................................
Conduct and Provide Second Appraisal (reporting burden):
Non-automated responders ......................................................................
Automated responders .............................................................................
2,428
........................
........................
2,654
809
1,619
1
1
.25
.08
202
129
Subtotal .............................................................................................
2,428
........................
........................
331
Total Annual Burden ..................................................................
ehiers on DSK5VPTVN1PROD with NOTICES
809
1,619
........................
........................
........................
7,298
General Description: Section 1471 of
the Dodd-Frank Act established a new
Truth in Lending (TILA) section 129H,
which contains appraisal requirements
applicable to higher-risk mortgages and
prohibits a creditor from extending
credit in the form of a higher-risk
VerDate Sep<11>2014
15:15 Jun 14, 2016
Jkt 238001
mortgage loan to any consumer without
meeting those requirements. A higherrisk mortgage is defined as a residential
mortgage loan secured by a principal
dwelling with an annual percentage rate
(APR) that exceeds the average prime
offer rate (APOR) for a comparable
PO 00000
Frm 00025
Fmt 4703
Sfmt 4703
transaction as of the date the interest
rate is set by certain enumerated
percentage point spreads. Additionally,
12 CFR 1026 allows a creditor to make
a higher-risk mortgage loan only if
certain conditions are met. The creditor
must obtain a written appraisal
E:\FR\FM\15JNN1.SGM
15JNN1
39046
Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Notices
performed by a certified or licensed
appraiser who must conduct a physical
property visit of the interior of the
property. At application, the applicant
must be provided with a statement
regarding the purpose of the appraisal;
a notice that that the creditor will
provide the applicant a copy of any
written appraisal; and notice that that
the applicant may choose to have a
separate appraisal conducted at the
expense of the applicant. The creditor
must also provide the consumer with a
free copy of any written appraisals
obtained for the transaction at least
three business days before closing.
The rule also requires a higher-risk
mortgage loan creditor to obtain an
additional written appraisal, from a
different licensed or certified appraiser,
at no cost to the borrower, if: The
higher-risk mortgage loan will finance
the acquisition of the consumer’s
principal dwelling; the seller acquired
the home within 180 days of signing the
agreement to sell the property; and the
consumer is purchasing the home for a
higher price than the seller paid.
The additional written appraisal
generally must include the following
information: (1) An analysis of the
difference in sale prices (i.e., the sale
price paid by the seller and the
acquisition price of the property as set
forth in the consumer’s purchase
agreement); (2) changes in market
conditions; and (3) any improvements
made to the property between the date
of the previous sale and the current sale.
Number
of respondents
Implementation Burden:
Recordkeeping burden .............................................................................
The information collection
requirements are needed to protect
consumers and promote the safety and
soundness of creditors making higherrisk mortgage loans. This information is
used by creditors to evaluate real estate
collateral in higher-risk mortgage loan
transactions and by consumers entering
these transactions.
4. Title: Interagency Guidance on
Leveraged Lending.
OMB Number: 3064–0191.
Affected Public: Insured state
nonmember banks and state savings
associations.
Estimated Number of Respondents:
10.
Frequency of Response: Occasionally.
Burden Estimate:
Estimated
annual
frequency
Estimated
average hours
per response
Estimated
total annual
burden hours
1
986.7
986.7
Total Implementation Burden ............................................................
Ongoing Burden:
Recordkeeping burden .............................................................................
........................
........................
........................
986.7
9
1
529.3
4,763.7
Total Ongoing Burden .......................................................................
........................
........................
........................
4,763.7
Total PRA Burden ......................................................................
ehiers on DSK5VPTVN1PROD with NOTICES
1
........................
........................
........................
5,750.4
General Description: The Guidance
describes expectations for the sound
risk management of leveraged lending
activities, including the importance for
institutions to develop and maintain: (a)
Transactions structured to reflect a
sound business premise, an appropriate
capital structure, and reasonable cash
flow and balance sheet leverage; (b) A
definition of leveraged lending that
facilitates consistent application across
all business lines; (c) Well-defined
underwriting standards; (d) a credit
limit and concentration framework
consistent with the institution’s risk
appetite; (e) Sound MIS that enable
management to identify, aggregate, and
monitor leveraged exposures and
comply with policy across all business
lines; (f) strong pipeline management
policies and procedures; and (g)
guidelines for conducting periodic
portfolio and pipeline stress tests to
quantify the potential impact of
economic and market conditions on the
institution’s asset quality, earnings,
liquidity, and capital.
The guidance outlines high-level
principles related to safe and sound
leveraged lending activities, including
underwriting considerations, assessing
and documenting enterprise value, risk
management expectations for credits
VerDate Sep<11>2014
15:15 Jun 14, 2016
Jkt 238001
awaiting distribution, stress testing
expectations and portfolio management,
and risk management expectations, all
of which will be reviewed during
supervisory examinations to assess how
well the financial institution is
managing its risk. Banks will not be
submitting documentation to the FDIC.
Rather, FDIC examiners will review this
documentation during examinations to
assess a bank’s management of its risk.
Request for Comment
Comments are invited on: (a) Whether
the collection of information is
necessary for the proper performance of
the FDIC’s functions, including whether
the information has practical utility; (b)
the accuracy of the estimates of the
burden of the 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; and (d) ways to minimize the
burden of the information collection on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
All comments will become a matter of
public record.
Dated at Washington, DC, this 10th day of
June 2016.
PO 00000
Frm 00026
Fmt 4703
Sfmt 4703
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2016–14120 Filed 6–14–16; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Notice of Termination; 10243 Bank of
Florida—Tampa Bay; Tampa, Florida
The Federal Deposit Insurance
Corporation (FDIC), as Receiver for
10243 Bank of Florida—Tampa Bay,
Tampa, Florida (Receiver) has been
authorized to take all actions necessary
to terminate the receivership estate of
Bank of Florida—Tampa Bay
(Receivership Estate); the Receiver has
made all dividend distributions
required by law.
The Receiver has further irrevocably
authorized and appointed FDICCorporate as its attorney-in-fact to
execute and file any and all documents
that may be required to be executed by
the Receiver which FDIC-Corporate, in
its sole discretion, deems necessary;
including but not limited to releases,
discharges, satisfactions, endorsements,
assignments and deeds.
E:\FR\FM\15JNN1.SGM
15JNN1
]]>Agencies
[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Notices]
[Pages 39044-39046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14120]
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
Agency Information Collection Activities: Submission for OMB
Review; Comment Request (3064-0001, -0174, -0188 & -0191)
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Notice and request for comment.
-----------------------------------------------------------------------
SUMMARY: The FDIC, 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 the renewal of existing
information collections, as required by the Paperwork Reduction Act of
1995. On April 6, 2016, (81 FR 19971), the FDIC requested comment for
60 days on a proposal to renew the information collections described
below. No comments were received. The FDIC hereby gives notice of its
plan to submit to OMB a request to approve the renewal of these
collections, and again invites comment on this renewal.
DATES: Comments must be submitted on or before July 15, 2016.
ADDRESSES: Interested parties are invited to submit written comments to
the FDIC by any of the following methods:
https://www.FDIC.gov/regulations/laws/federal/.
Email: comments@fdic.gov Include the name of the
collection in the subject line of the message.
Mail: Gary A. Kuiper (202.898.3877), Counsel, Room MB-
3016, or Manny Cabeza, (202.898.3767), Counsel, Room MB-3105, Federal
Deposit Insurance Corporation, 550 17th Street NW., Washington, DC
20429.
Hand Delivery: Comments may be hand-delivered to the guard
station at the rear of the 17th Street Building (located on F Street),
on business days between 7:00 a.m. and 5:00 p.m.
All comments should refer to the relevant OMB control number. A
copy of the comments may also be submitted to the OMB desk officer for
the FDIC: Office of Information and Regulatory Affairs, Office of
Management and Budget, New Executive Office Building, Washington, DC
20503.
FOR FURTHER INFORMATION CONTACT: Gary A. Kuiper or Manny Cabeza, at the
FDIC address above.
SUPPLEMENTARY INFORMATION: Proposal to renew the following currently-
approved collections of information:
1. Title: Charter and Federal Deposit Insurance Application.
OMB Number: 3064-0001.
[[Page 39045]]
Affected Public: Banks or savings associations wishing to become
FDIC insured depository institutions.
Annual Number of Respondents: 42.
Frequency of Response: On occasion.
Estimated Time per Response: 125 hours.
Total Annual Burden: 5,250 hours.
General Description: The Federal Deposit Insurance Act requires
financial institutions to apply to the FDIC to obtain deposit
insurance. This collection provides FDIC with the information needed to
evaluate the applications.
2. Title: Interagency Guidance on Funding and Liquidity Risk
Management.
OMB Number: 3064-0174.
Affected Public: Insured state nonmember banks and state savings
associations.
Frequency of Response: Occasionally (Paragraph 14); Quarterly
(Paragraph 20).
Annual Number of Respondents: 3,947.
Burden Estimate:
----------------------------------------------------------------------------------------------------------------
Number of Average hours Responses per
respondents per response year Total hours
----------------------------------------------------------------------------------------------------------------
Paragraph 14 (Record Keeping):
Large Institutions(over $20 billion in 19 720 1 13,680
assets)....................................
Mid-size Institutions($1 to $20 billion in 329 240 1 78,960
assets)....................................
Small Institutions(less than $1 billion in 3,599 80 1 287,920
assets)....................................
---------------------------------------------------------------
Paragraph 14 Subtotal................... 3,947 .............. .............. 380,560
Paragraph 20 (Reporting):
All supervised institutions................. 3,947 4 12 189,456
---------------------------------------------------------------
Total Burden Hours.................. .............. .............. .............. 570,016
----------------------------------------------------------------------------------------------------------------
General Description: The information collection includes reporting
and recordkeeping requirements related to sound risk management
principles applicable to insured depository institutions. To enable an
institution and its supervisor to evaluate the liquidity risk exposure
of an institution's individual business lines and for the institution
as a whole, the guidance summarizes principles of sound liquidity risk
management and advocates the establishment of policies and procedures
that consider liquidity costs, benefits, and risks in strategic
planning. In addition, the guidance encourages the use of liquidity
risk reports that provide detailed and aggregate information on items
such as cash flow gaps, cash flow projections, assumptions used in cash
flow projections, asset and funding concentrations, funding
availability, and early warning or risk indicators. This is intended to
enable management to assess an institution's sensitivity to changes in
market conditions, the institution's financial performance, and other
important risk factors.
3. Title: Appraisals for Higher-Priced Mortgage Loans.
OMB Number: 3064-0188.
Affected Public: Insured state nonmember banks and state savings
associations.
Estimated Number of Respondents: 2,428.
Frequency of Response: Occasionally.
Burden Estimate:
----------------------------------------------------------------------------------------------------------------
Number of Number of Hours per Total burden
respondents responses response hours
----------------------------------------------------------------------------------------------------------------
Review and Provide Copy of Full Interior
Appraisal (reporting burden):
Non-automated responders.................... 809 13 .25 2,629
Automated responders........................ 1,619 13 .08 1,684
---------------------------------------------------------------
Subtotal................................ 2,428 .............. .............. 4,313
Investigate and Verify Requirement for Second
Appraisal (record keeping burden):
Non-automated responders.................... 809 8 .25 1,618
Automated responders........................ 1,619 8 .08 1,036
---------------------------------------------------------------
Subtotal................................ 2,428 .............. .............. 2,654
Conduct and Provide Second Appraisal (reporting
burden):
Non-automated responders.................... 809 1 .25 202
Automated responders........................ 1,619 1 .08 129
---------------------------------------------------------------
Subtotal................................ 2,428 .............. .............. 331
---------------------------------------------------------------
Total Annual Burden................. .............. .............. .............. 7,298
----------------------------------------------------------------------------------------------------------------
General Description: Section 1471 of the Dodd-Frank Act established
a new Truth in Lending (TILA) section 129H, which contains appraisal
requirements applicable to higher-risk mortgages and prohibits a
creditor from extending credit in the form of a higher-risk mortgage
loan to any consumer without meeting those requirements. A higher-risk
mortgage is defined as a residential mortgage loan secured by a
principal dwelling with an annual percentage rate (APR) that exceeds
the average prime offer rate (APOR) for a comparable transaction as of
the date the interest rate is set by certain enumerated percentage
point spreads. Additionally, 12 CFR 1026 allows a creditor to make a
higher-risk mortgage loan only if certain conditions are met. The
creditor must obtain a written appraisal
[[Page 39046]]
performed by a certified or licensed appraiser who must conduct a
physical property visit of the interior of the property. At
application, the applicant must be provided with a statement regarding
the purpose of the appraisal; a notice that that the creditor will
provide the applicant a copy of any written appraisal; and notice that
that the applicant may choose to have a separate appraisal conducted at
the expense of the applicant. The creditor must also provide the
consumer with a free copy of any written appraisals obtained for the
transaction at least three business days before closing.
The rule also requires a higher-risk mortgage loan creditor to
obtain an additional written appraisal, from a different licensed or
certified appraiser, at no cost to the borrower, if: The higher-risk
mortgage loan will finance the acquisition of the consumer's principal
dwelling; the seller acquired the home within 180 days of signing the
agreement to sell the property; and the consumer is purchasing the home
for a higher price than the seller paid.
The additional written appraisal generally must include the
following information: (1) An analysis of the difference in sale prices
(i.e., the sale price paid by the seller and the acquisition price of
the property as set forth in the consumer's purchase agreement); (2)
changes in market conditions; and (3) any improvements made to the
property between the date of the previous sale and the current sale.
The information collection requirements are needed to protect
consumers and promote the safety and soundness of creditors making
higher-risk mortgage loans. This information is used by creditors to
evaluate real estate collateral in higher-risk mortgage loan
transactions and by consumers entering these transactions.
4. Title: Interagency Guidance on Leveraged Lending.
OMB Number: 3064-0191.
Affected Public: Insured state nonmember banks and state savings
associations.
Estimated Number of Respondents: 10.
Frequency of Response: Occasionally.
Burden Estimate:
----------------------------------------------------------------------------------------------------------------
Estimated Estimated Estimated
Number of annual average hours total annual
respondents frequency per response burden hours
----------------------------------------------------------------------------------------------------------------
Implementation Burden:
Recordkeeping burden........................ 1 1 986.7 986.7
---------------------------------------------------------------
Total Implementation Burden............. .............. .............. .............. 986.7
Ongoing Burden:
Recordkeeping burden........................ 9 1 529.3 4,763.7
---------------------------------------------------------------
Total Ongoing Burden.................... .............. .............. .............. 4,763.7
---------------------------------------------------------------
Total PRA Burden.................... .............. .............. .............. 5,750.4
----------------------------------------------------------------------------------------------------------------
General Description: The Guidance describes expectations for the
sound risk management of leveraged lending activities, including the
importance for institutions to develop and maintain: (a) Transactions
structured to reflect a sound business premise, an appropriate capital
structure, and reasonable cash flow and balance sheet leverage; (b) A
definition of leveraged lending that facilitates consistent application
across all business lines; (c) Well-defined underwriting standards; (d)
a credit limit and concentration framework consistent with the
institution's risk appetite; (e) Sound MIS that enable management to
identify, aggregate, and monitor leveraged exposures and comply with
policy across all business lines; (f) strong pipeline management
policies and procedures; and (g) guidelines for conducting periodic
portfolio and pipeline stress tests to quantify the potential impact of
economic and market conditions on the institution's asset quality,
earnings, liquidity, and capital.
The guidance outlines high-level principles related to safe and
sound leveraged lending activities, including underwriting
considerations, assessing and documenting enterprise value, risk
management expectations for credits awaiting distribution, stress
testing expectations and portfolio management, and risk management
expectations, all of which will be reviewed during supervisory
examinations to assess how well the financial institution is managing
its risk. Banks will not be submitting documentation to the FDIC.
Rather, FDIC examiners will review this documentation during
examinations to assess a bank's management of its risk.
Request for Comment
Comments are invited on: (a) Whether the collection of information
is necessary for the proper performance of the FDIC's functions,
including whether the information has practical utility; (b) the
accuracy of the estimates of the burden of the 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; and (d) ways to minimize the burden of the information
collection on respondents, including through the use of automated
collection techniques or other forms of information technology. All
comments will become a matter of public record.
Dated at Washington, DC, this 10th day of June 2016.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2016-14120 Filed 6-14-16; 8:45 am]
BILLING CODE 6714-01-P
