Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Leveraged Lending, 12326-12327 [2019-06151]

Download as PDF 12326 Federal Register / Vol. 84, No. 62 / Monday, April 1, 2019 / Notices 7th Street SW, suite 3E–218, Washington, DC 20219. Under the PRA (44 U.S.C. 3501–3520), federal agencies must obtain approval from OMB for each collection of information 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 asks that OMB extend its approval of this collection. Title: Funding and Liquidity Risk Management. OMB Control No.: 1557–0244. Description: The Interagency Policy Statement on Funding and Liquidity Risk Management 2 (Policy Statement) summarizes the principles of sound liquidity risk management that the federal banking agencies have issued in the past 3 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.’’ 4 The Policy Statement describes 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. SUPPLEMENTARY INFORMATION: 2 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). 4 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. 3 For VerDate Sep<11>2014 17:22 Mar 29, 2019 Jkt 247001 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 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. Type of Review: Regular. Affected Public: Businesses or other for-profit. Estimated Number of Respondents: 1,171. Frequency of Response: On occasion. Estimated Total Burden Hours: 84,464 hours. Comments: On December 4, 2018, the OCC issued a notice for 60 days of comment concerning this collection, 83 FR 62671. No comments were received. Comments continue to be solicited on: (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. Dated: March 25, 2019. Theodore J. Dowd, Deputy Chief Counsel, Office of the Comptroller of the Currency. [FR Doc. 2019–06154 Filed 3–29–19; 8:45 am] BILLING CODE 4810–33–P PO 00000 Frm 00137 Fmt 4703 Sfmt 4703 DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Leveraged Lending 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 respondents are 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 ‘‘Leveraged Lending.’’ The OCC also is giving notice that it has sent the collection to OMB for review. DATES: Comments must be received by May 1, 2019. ADDRESSES: Commenters are encouraged to submit comments by email, if possible. You may submit comments by any of the following methods: • Email: prainfo@occ.treas.gov. • Mail: Chief Counsel’s Office, Office of the Comptroller of the Currency, Attention: 1557–0315, 400 7th Street SW, Suite 3E–218, Washington, DC 20219. • Hand Delivery/Courier: 400 7th Street SW, Suite 3E–218, Washington, DC 20219. • Fax: (571) 465–4326. Instructions: You must include ‘‘OCC’’ as the agency name and ‘‘1557– 0315’’ in your comment. In general, the OCC will publish comments on www.reginfo.gov without change, including any business or personal information provided, such as name and address information, email addresses, or phone numbers. 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. SUMMARY: E:\FR\FM\01APN1.SGM 01APN1 Federal Register / Vol. 84, No. 62 / Monday, April 1, 2019 / Notices Additionally, please send a copy of your comments by mail to: OCC Desk Officer, 1557–0315, U.S. Office of Management and Budget, 725 17th Street NW, #10235, Washington, DC 20503 or by email to oira_submission@ omb.eop.gov. You may review comments and other related materials that pertain to this information collection 1 following the close of the 30-day comment period for this notice by any of the following methods: • Viewing Comments Electronically: Go to www.reginfo.gov. Click on the ‘‘Information Collection Review’’ tab. Underneath the ‘‘Currently under Review’’ section heading, from the dropdown menu, select ‘‘Department of Treasury’’ and then click ‘‘submit.’’ This information collection can be located by searching by OMB control number ‘‘1557–0315’’ or ‘‘Leveraged Lending.’’ Upon finding the appropriate information collection, click on the related ‘‘ICR Reference Number.’’ On the next screen, select ‘‘View Supporting Statement and Other Documents’’ and then click on the link to any comment listed at the bottom of the screen. • For assistance in navigating www.reginfo.gov, please contact the Regulatory Information Service Center at (202) 482–7340. • Viewing Comments Personally: You may personally inspect comments at the OCC, 400 7th Street SW, Washington, DC. 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 hearing impaired, 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 comments. FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer, (202) 649–5490 or, for persons who are deaf or hearing impaired, TTY, (202) 649–5597, Chief Counsel’s Office, Office of the Comptroller of the Currency, 400 7th Street SW, Suite 3E–218, Washington, DC 20219. 1 On November 13, 2018, the OCC published a 60day notice for this information collection. VerDate Sep<11>2014 17:22 Mar 29, 2019 Jkt 247001 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 recommendations, requests, or requirements that members of the public submit reports, keep records, or provide information to a third party. The OCC asks OMB to extend its approval of this collection. Title: Leveraged Lending. OMB Control No.: 1557–0315. Description: On March 22, 2013, the agencies 2 issued guidance to the financial institutions they supervise 3 on how to evaluate and monitor credit risks in leveraged loans, understand the effect of changes in borrowers’ enterprise values on credit portfolio quality, and assess the sensitivity of future credit losses to these changes in enterprise values.4 In regard to the underwriting of such credits, the guidance provides information for financial institutions to consider in assessing whether borrowers have the ability to repay credits when due and whether borrowers have sustainable capital structures, including bank borrowings and other debt, to support their continued operations through economic cycles. The guidance also provides information to financial institutions on the risks and potential impact of stressful events and circumstances on a borrower’s financial condition. The guidance recommends that financial institutions consider developing: (i) Underwriting policies for leveraged lending, including stresstesting procedures for leveraged credits; (ii) risk management policies, including stress-testing procedures for pipeline exposures; and (iii) policies and procedures for incorporating the results of leveraged credit and pipeline stress tests into the firm’s overall stress-testing SUPPLEMENTARY INFORMATION: 2 OCC, Board of Governors of the Federal Reserve System, and Federal Deposit Insurance Corporation. 3 For the OCC, the term ‘‘financial institution’’ or ‘‘institution’’ includes national banks, federal savings associations, and federal branches and agencies supervised by the OCC. 4 78 FR 17766 (March 22, 2013). PO 00000 Frm 00138 Fmt 4703 Sfmt 9990 12327 framework. While not requirements, these recommended policies qualify as ‘‘collections of information’’ as defined in the PRA. Respondents are financial institutions with leveraged lending activities as defined in the guidance that may develop policies recommended in the guidance. Title: Guidance on Leveraged Lending. OMB Control No.: 1557–0315. Frequency of Response: Annual. Affected Public: Financial institutions with leveraged lending. Burden Estimates: Estimated number of respondents: 29. Estimated total annual burden: 39,162 hours to build; 49,462 hours for ongoing use. Total estimated annual burden: 88,624 hours. The OCC issued a notice regarding this collection for 60 days of comment on November 13, 2018, 83 FR 56399. No comments were received. Comments continue to be invited on: (a) Whether the information collections 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; (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 startup costs and costs of operation, maintenance, and purchase of services to provide information. Dated: March 25, 2019. Theodore J. Dowd, Deputy Chief Counsel, Office of the Comptroller of the Currency. [FR Doc. 2019–06151 Filed 3–29–19; 8:45 am] BILLING CODE 4810–33–P E:\FR\FM\01APN1.SGM 01APN1

Agencies

[Federal Register Volume 84, Number 62 (Monday, April 1, 2019)]
[Notices]
[Pages 12326-12327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06151]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Submission for OMB Review; Leveraged Lending

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 respondents are 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 ``Leveraged Lending.'' The OCC also is 
giving notice that it has sent the collection to OMB for review.

DATES: Comments must be received by May 1, 2019.

ADDRESSES: Commenters are encouraged to submit comments by email, if 
possible. You may submit comments by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Office of the Comptroller of 
the Currency, Attention: 1557-0315, 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0315'' in your comment. In general, the OCC will publish 
comments on www.reginfo.gov without change, including any business or 
personal information provided, such as name and address information, 
email addresses, or phone numbers. 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.

[[Page 12327]]

    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0315, U.S. Office of Management and Budget, 725 17th 
Street NW, #10235, Washington, DC 20503 or by email to 
[email protected].
    You may review comments and other related materials that pertain to 
this information collection \1\ following the close of the 30-day 
comment period for this notice by any of the following methods:
---------------------------------------------------------------------------

    \1\ On November 13, 2018, the OCC published a 60-day notice for 
this information collection.
---------------------------------------------------------------------------

     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu, 
select ``Department of Treasury'' and then click ``submit.'' This 
information collection can be located by searching by OMB control 
number ``1557-0315'' or ``Leveraged Lending.'' Upon finding the 
appropriate information collection, click on the related ``ICR 
Reference Number.'' On the next screen, select ``View Supporting 
Statement and Other Documents'' and then click on the link to any 
comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.
     Viewing Comments Personally: You may personally inspect 
comments at the OCC, 400 7th Street SW, Washington, DC. 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 hearing impaired, 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 
comments.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer, 
(202) 649-5490 or, for persons who are deaf or hearing impaired, TTY, 
(202) 649-5597, Chief Counsel's Office, Office of the Comptroller of 
the Currency, 400 7th Street SW, Suite 3E-218, 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 
recommendations, requests, or requirements that members of the public 
submit reports, keep records, or provide information to a third party. 
The OCC asks OMB to extend its approval of this collection.
    Title: Leveraged Lending.
    OMB Control No.: 1557-0315.
    Description: On March 22, 2013, the agencies \2\ issued guidance to 
the financial institutions they supervise \3\ on how to evaluate and 
monitor credit risks in leveraged loans, understand the effect of 
changes in borrowers' enterprise values on credit portfolio quality, 
and assess the sensitivity of future credit losses to these changes in 
enterprise values.\4\ In regard to the underwriting of such credits, 
the guidance provides information for financial institutions to 
consider in assessing whether borrowers have the ability to repay 
credits when due and whether borrowers have sustainable capital 
structures, including bank borrowings and other debt, to support their 
continued operations through economic cycles. The guidance also 
provides information to financial institutions on the risks and 
potential impact of stressful events and circumstances on a borrower's 
financial condition.
---------------------------------------------------------------------------

    \2\ OCC, Board of Governors of the Federal Reserve System, and 
Federal Deposit Insurance Corporation.
    \3\ For the OCC, the term ``financial institution'' or 
``institution'' includes national banks, federal savings 
associations, and federal branches and agencies supervised by the 
OCC.
    \4\ 78 FR 17766 (March 22, 2013).
---------------------------------------------------------------------------

    The guidance recommends that financial institutions consider 
developing: (i) Underwriting policies for leveraged lending, including 
stress-testing procedures for leveraged credits; (ii) risk management 
policies, including stress-testing procedures for pipeline exposures; 
and (iii) policies and procedures for incorporating the results of 
leveraged credit and pipeline stress tests into the firm's overall 
stress-testing framework. While not requirements, these recommended 
policies qualify as ``collections of information'' as defined in the 
PRA.
    Respondents are financial institutions with leveraged lending 
activities as defined in the guidance that may develop policies 
recommended in the guidance.
    Title: Guidance on Leveraged Lending.
    OMB Control No.: 1557-0315.
    Frequency of Response: Annual.
    Affected Public: Financial institutions with leveraged lending.
    Burden Estimates:
    Estimated number of respondents: 29.
    Estimated total annual burden: 39,162 hours to build; 49,462 hours 
for ongoing use.
    Total estimated annual burden: 88,624 hours.
    The OCC issued a notice regarding this collection for 60 days of 
comment on November 13, 2018, 83 FR 56399. No comments were received. 
Comments continue to be invited on:
    (a) Whether the information collections 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;
    (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 startup costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: March 25, 2019.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2019-06151 Filed 3-29-19; 8:45 am]
 BILLING CODE 4810-33-P
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