Agency Information Collection Requirements; Information Collection Renewal; Comment Request; OCC Guidelines Establishing Standards for Recovery Planning by Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches, 60105-60106 [2021-23519]

Download as PDF Federal Register / Vol. 86, No. 207 / Friday, October 29, 2021 / Notices DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency Agency Information Collection Requirements; Information Collection Renewal; Comment Request; OCC Guidelines Establishing Standards for Recovery Planning by Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches 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 the renewal of its information collection titled, ‘‘OCC Guidelines Establishing Standards for Recovery Planning by Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches.’’ DATES: You should submit written comments by December 28, 2021. 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, Attention: Comment Processing, Office of the Comptroller of the Currency, Attention: 1557–0333, 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– 0333’’ 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 khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 18:17 Oct 28, 2021 Jkt 256001 disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure. You may review comments and other related materials that pertain to this information collection beginning on the date of publication of the second notice for this collection by the method set forth in the next bullet. Following the close of this notice’s 60-day comment period, the OCC will publish a second notice with a 30-day comment period: • Viewing Comments Electronically: Go to www.reginfo.gov. Hover over the ‘‘Information Collection Review’’ dropdown. 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 ‘‘1557–0333’’ or ‘‘OCC Guidelines Establishing Standards for Recovery Planning by Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches.’’ 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. FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance Officer, (202) 649–5490, 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 the Office of Management and Budget (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. Section 3506(c)(2)(A) of title 44 requires Federal agencies to provide a 60-day notice in the Federal Register concerning each proposed collection of information, including each proposed extension of an existing collection of information, before submitting the collection to OMB for approval. To comply with this requirement, the OCC is publishing PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 60105 notice of the renewal of the information collection set forth in this document. Title: OCC Guidelines Establishing Standards for Recovery Planning by Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches. OMB Control No.: 1557–0333. Abstract: In 2015, the OCC issued guidelines applicable to each insured national bank, insured Federal savings association, and insured Federal branch of a foreign bank (together, banks) with average total consolidated assets equal to or greater than $50 billion (covered banks). The guidelines stated that each covered bank should develop and maintain a recovery plan that is appropriate for its individual size, risk profile, activities, and complexity, including the complexity of its organizational and legal entity structure, in order to be able to respond quickly to and recover from the financial effects of severe stress. The guidelines established standards for this recovery planning. The OCC issued a final rule in 2018 which increased the average total consolidated assets threshold for applying the recovery planning guidelines to a bank from $50 billion to $250 billion and decreased from 18 months to 12 months the time within which a bank should comply with the recovery planning guidelines after the bank first becomes subject to the guidelines.1 Overview of covered bank. A recovery plan should describe the covered bank’s overall organizational and legal entity structure, including its material entities, critical operations, core business lines, and core management information systems. The plan should describe interconnections and interdependencies (1) across business lines within the covered bank, (2) with affiliates in a bank holding company structure, (3) between a covered bank and its foreign subsidiaries, and (4) with critical third parties. Triggers. A covered bank’s recovery plan should identify triggers that appropriately reflect the bank’s particular vulnerabilities. Options for recovery. A recovery plan should identify a wide range of credible options that a covered bank could undertake to restore financial strength and viability, thereby allowing the bank to continue to operate as a going concern and to avoid liquidation or resolution. A recovery plan should explain how the covered bank would carry out each option and describe the timing required for carrying out each 1 83 E:\FR\FM\29OCN1.SGM FR 66604 (December 27, 2018). 29OCN1 khammond on DSKJM1Z7X2PROD with NOTICES 60106 Federal Register / Vol. 86, No. 207 / Friday, October 29, 2021 / Notices option. The recovery plan should specifically identify the recovery options that require regulatory or legal approval. Impact assessments. For each recovery option, a covered bank should assess and describe how the option would affect the covered bank. This impact assessment and description should specify the procedures the covered bank would use to maintain the financial strength and viability of its material entities, critical operations, and core business lines for each recovery option. For each option, the recovery plan’s impact assessment should address the following: (1) The effect on the covered bank’s capital, liquidity, funding, and profitability, (2) the effect on the covered bank’s material entities, critical operations, and core business lines, including reputational impact, and (3) any legal or market impediment or regulatory requirement that must be addressed or satisfied in order to implement the option. Escalation procedures. A recovery plan should clearly outline the process for escalating decision-making to the covered bank’s senior management, board of directors (board), or appropriate board committee in response to the breach of any trigger. The recovery plan should also identify the departments and persons responsible for executing the decisions of senior management, the board, or an appropriate board committee. Management reports. A recovery plan should require reports that provide senior management, the board, or an appropriate board committee with sufficient data and information to make timely decisions regarding the appropriate actions necessary to respond to the breach of a trigger. Communication procedures. A recovery plan should provide that the covered bank notify the OCC of any significant breach of a trigger and any action taken or to be taken in response to such breach and should explain the process for deciding when a breach of a trigger is significant. A recovery plan also should address when and how the covered bank will notify persons within the organization and other external parties of its action under the recovery plan. The recovery plan should specifically identify how the covered bank will obtain required regulatory or legal approvals. Other information. A recovery plan should include any other information that the OCC communicates in writing directly to the covered bank regarding the covered bank’s recovery plan. A covered bank should (1) integrate its recovery plan into its risk governance VerDate Sep<11>2014 18:17 Oct 28, 2021 Jkt 256001 functions and (2) align its recovery plan with its other plans, such as its strategic, operational (including business continuity), contingency, capital (including stress testing), liquidity, and resolution planning. The covered bank’s recovery plan also should be specific to that covered bank and coordinated with any recovery and resolution planning efforts by the bank’s holding company. A covered bank’s recovery plan should address the responsibilities of the bank’s management and board with respect to the plan. Specifically, management should review the recovery plan at least annually and in response to a material event. It should revise the plan as necessary to reflect material changes in the covered bank’s size, risk profile, activities, and complexity, as well as changes in external threats. This review should evaluate the organizational structure and its effectiveness in facilitating a recovery. The board is responsible for overseeing the covered bank’s recovery planning process. The board of a covered bank or an appropriate board committee should review and approve the recovery plan at least annually, and as needed to address significant changes made by management. The OCC believes that a large, complex institution should undertake recovery planning in order to be able to respond quickly to and recover from the financial effects of severe stress on the institution. The process of developing and maintaining a recovery plan also should cause a covered bank’s management and its board to enhance their focus on risk governance with a view toward lessening the negative impact of future events. OCC examiners will assess the appropriateness and adequacy of the covered bank’s ongoing recovery planning process as part of the agency’s regular supervisory activities. Type of Review: Extension, without change, of a currently approved collection. Affected Public: Businesses or other for-profit; individuals. Total Number of Respondents: 8. Total Burden per Respondent: 7,543 hours. Total Burden for Collection: 60,344 hours. Comments submitted in response to this notice will be summarized and included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information has practical utility; PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 (b) The accuracy of the agency’s estimate of the burden of the collection of information; (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, maintenance, and purchase of services to provide information. Patrick T. Tierney, Assistant Director, Bank Advisory, Office of the Comptroller of the Currency. [FR Doc. 2021–23519 Filed 10–28–21; 8:45 am] BILLING CODE 4810–33–P DEPARTMENT OF THE TREASURY Internal Revenue Service Proposed Collection; Comment Request for Form SS–4 and SS–4PR Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. AGENCY: The Internal Revenue Service, 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 information collections, as required by the Paperwork Reduction Act of 1995. The IRS is soliciting comments concerning Form SS–4, Application for Employer Identification Number, and Form SS– 4PR, Solicitud de Numero de Indentificacion Patronal (EIN). DATES: Written comments should be received on or before December 28, 2021 to be assured of consideration. ADDRESSES: Direct all written comments to Paul Adams, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the form and instructions should be directed to Sara Covington, at (737) 800–6149, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or through the internet at Sara.L.Covington@irs.gov. SUPPLEMENTARY INFORMATION: Title: SS–4, Application for Employer Identification Number, and Form SS– 4PR, Solicitud de Numero de Identification Patronal (EIN). SUMMARY: E:\FR\FM\29OCN1.SGM 29OCN1

Agencies

[Federal Register Volume 86, Number 207 (Friday, October 29, 2021)]
[Notices]
[Pages 60105-60106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-23519]



[[Page 60105]]

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Requirements; Information 
Collection Renewal; Comment Request; OCC Guidelines Establishing 
Standards for Recovery Planning by Certain Large Insured National 
Banks, Insured Federal Savings Associations, and Insured Federal 
Branches

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, ``OCC Guidelines Establishing Standards for Recovery Planning 
by Certain Large Insured National Banks, Insured Federal Savings 
Associations, and Insured Federal Branches.''

DATES: You should submit written comments by December 28, 2021.

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, Attention: Comment 
Processing, Office of the Comptroller of the Currency, Attention: 1557-
0333, 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 
``1557-0333'' 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.
    You may review comments and other related materials that pertain to 
this information collection beginning on the date of publication of the 
second notice for this collection by the method set forth in the next 
bullet. Following the close of this notice's 60-day comment period, the 
OCC will publish a second notice with a 30-day comment period:
     Viewing Comments Electronically: Go to www.reginfo.gov. 
Hover over the ``Information Collection Review'' dropdown. 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 ``1557-0333'' or ``OCC Guidelines Establishing Standards for 
Recovery Planning by Certain Large Insured National Banks, Insured 
Federal Savings Associations, and Insured Federal Branches.''
    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.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance 
Officer, (202) 649-5490, 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 the Office of Management and Budget 
(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. Section 3506(c)(2)(A) of title 44 requires Federal 
agencies to provide a 60-day notice in the Federal Register concerning 
each proposed collection of information, including each proposed 
extension of an existing collection of information, before submitting 
the collection to OMB for approval. To comply with this requirement, 
the OCC is publishing notice of the renewal of the information 
collection set forth in this document.
    Title: OCC Guidelines Establishing Standards for Recovery Planning 
by Certain Large Insured National Banks, Insured Federal Savings 
Associations, and Insured Federal Branches.
    OMB Control No.: 1557-0333.
    Abstract: In 2015, the OCC issued guidelines applicable to each 
insured national bank, insured Federal savings association, and insured 
Federal branch of a foreign bank (together, banks) with average total 
consolidated assets equal to or greater than $50 billion (covered 
banks). The guidelines stated that each covered bank should develop and 
maintain a recovery plan that is appropriate for its individual size, 
risk profile, activities, and complexity, including the complexity of 
its organizational and legal entity structure, in order to be able to 
respond quickly to and recover from the financial effects of severe 
stress. The guidelines established standards for this recovery 
planning.
    The OCC issued a final rule in 2018 which increased the average 
total consolidated assets threshold for applying the recovery planning 
guidelines to a bank from $50 billion to $250 billion and decreased 
from 18 months to 12 months the time within which a bank should comply 
with the recovery planning guidelines after the bank first becomes 
subject to the guidelines.\1\
---------------------------------------------------------------------------

    \1\ 83 FR 66604 (December 27, 2018).
---------------------------------------------------------------------------

    Overview of covered bank. A recovery plan should describe the 
covered bank's overall organizational and legal entity structure, 
including its material entities, critical operations, core business 
lines, and core management information systems. The plan should 
describe interconnections and interdependencies (1) across business 
lines within the covered bank, (2) with affiliates in a bank holding 
company structure, (3) between a covered bank and its foreign 
subsidiaries, and (4) with critical third parties.
    Triggers. A covered bank's recovery plan should identify triggers 
that appropriately reflect the bank's particular vulnerabilities.
    Options for recovery. A recovery plan should identify a wide range 
of credible options that a covered bank could undertake to restore 
financial strength and viability, thereby allowing the bank to continue 
to operate as a going concern and to avoid liquidation or resolution. A 
recovery plan should explain how the covered bank would carry out each 
option and describe the timing required for carrying out each

[[Page 60106]]

option. The recovery plan should specifically identify the recovery 
options that require regulatory or legal approval.
    Impact assessments. For each recovery option, a covered bank should 
assess and describe how the option would affect the covered bank. This 
impact assessment and description should specify the procedures the 
covered bank would use to maintain the financial strength and viability 
of its material entities, critical operations, and core business lines 
for each recovery option. For each option, the recovery plan's impact 
assessment should address the following: (1) The effect on the covered 
bank's capital, liquidity, funding, and profitability, (2) the effect 
on the covered bank's material entities, critical operations, and core 
business lines, including reputational impact, and (3) any legal or 
market impediment or regulatory requirement that must be addressed or 
satisfied in order to implement the option.
    Escalation procedures. A recovery plan should clearly outline the 
process for escalating decision-making to the covered bank's senior 
management, board of directors (board), or appropriate board committee 
in response to the breach of any trigger. The recovery plan should also 
identify the departments and persons responsible for executing the 
decisions of senior management, the board, or an appropriate board 
committee.
    Management reports. A recovery plan should require reports that 
provide senior management, the board, or an appropriate board committee 
with sufficient data and information to make timely decisions regarding 
the appropriate actions necessary to respond to the breach of a 
trigger.
    Communication procedures. A recovery plan should provide that the 
covered bank notify the OCC of any significant breach of a trigger and 
any action taken or to be taken in response to such breach and should 
explain the process for deciding when a breach of a trigger is 
significant. A recovery plan also should address when and how the 
covered bank will notify persons within the organization and other 
external parties of its action under the recovery plan. The recovery 
plan should specifically identify how the covered bank will obtain 
required regulatory or legal approvals.
    Other information. A recovery plan should include any other 
information that the OCC communicates in writing directly to the 
covered bank regarding the covered bank's recovery plan.
    A covered bank should (1) integrate its recovery plan into its risk 
governance functions and (2) align its recovery plan with its other 
plans, such as its strategic, operational (including business 
continuity), contingency, capital (including stress testing), 
liquidity, and resolution planning. The covered bank's recovery plan 
also should be specific to that covered bank and coordinated with any 
recovery and resolution planning efforts by the bank's holding company.
    A covered bank's recovery plan should address the responsibilities 
of the bank's management and board with respect to the plan. 
Specifically, management should review the recovery plan at least 
annually and in response to a material event. It should revise the plan 
as necessary to reflect material changes in the covered bank's size, 
risk profile, activities, and complexity, as well as changes in 
external threats. This review should evaluate the organizational 
structure and its effectiveness in facilitating a recovery. The board 
is responsible for overseeing the covered bank's recovery planning 
process. The board of a covered bank or an appropriate board committee 
should review and approve the recovery plan at least annually, and as 
needed to address significant changes made by management.
    The OCC believes that a large, complex institution should undertake 
recovery planning in order to be able to respond quickly to and recover 
from the financial effects of severe stress on the institution. The 
process of developing and maintaining a recovery plan also should cause 
a covered bank's management and its board to enhance their focus on 
risk governance with a view toward lessening the negative impact of 
future events. OCC examiners will assess the appropriateness and 
adequacy of the covered bank's ongoing recovery planning process as 
part of the agency's regular supervisory activities.
    Type of Review: Extension, without change, of a currently approved 
collection.
    Affected Public: Businesses or other for-profit; individuals.
    Total Number of Respondents: 8.
    Total Burden per Respondent: 7,543 hours.
    Total Burden for Collection: 60,344 hours.
    Comments submitted in response to this notice will be summarized 
and included in the request for OMB approval. All comments will become 
a matter of public record. Comments are invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
the information has practical utility;
    (b) The accuracy of the agency's estimate of the burden of the 
collection of information;
    (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, 
maintenance, and purchase of services to provide information.

Patrick T. Tierney,
Assistant Director, Bank Advisory, Office of the Comptroller of the 
Currency.
[FR Doc. 2021-23519 Filed 10-28-21; 8:45 am]
BILLING CODE 4810-33-P