Agency Information Collection Activities: Proposed Collection Renewal; Comment Request, 56417-56421 [2022-19803]

Download as PDF 56417 Federal Register / Vol. 87, No. 177 / Wednesday, September 14, 2022 / Notices Estimated number of responses per respondent Estimated number of respondents Estimated time per response (hours) Estimated annual burden (hours) Information collection description Type of burden Paragraph 14—Strategies, policies, procedures, and risk tolerances. Paragraph 20—Liquidity risk management measurement, monitoring, and reporting. Recordkeeping (Voluntary) .. 3,128 1 83.94 262,564 Reporting (Voluntary) ........... 3,128 12 4 150,144 Total Annual Burden .............................. .............................................. ........................ ........................ ........................ 412,708 General Description of Collection: The information collection includes reporting and recordkeeping burdens 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 Interagency Policy Statement on Funding and Liquidity Risk Management (Interagency Statement) 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 Interagency Statement 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. There is no change in the method or substance of the collection. The overall reduction in burden hours is the result of economic fluctuation. In particular, the number of respondents 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 collection of information 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. Federal Deposit Insurance Corporation. Dated at Washington, DC, on September 8, 2022. James P. Sheesley, Assistant Executive Secretary. [FR Doc. 2022–19802 Filed 9–13–22; 8:45 am] BILLING CODE 6714–01–P FEDERAL DEPOSIT INSURANCE CORPORATION [OMB No. 3064–0139; –0169; –0189; –0202] Agency Information Collection Activities: Proposed Collection Renewal; Comment Request Federal Deposit Insurance Corporation (FDIC). ACTION: Notice and request for comment. AGENCY: The FDIC, as part of its obligations under the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to take this opportunity to comment on the renewal of the existing information collections described below (OMB Control No. 3064–0139, –0169, –0189, and—0202). DATES: Comments must be submitted on or before November 14, 2022. ADDRESSES: Interested parties are invited to submit written comments to SUMMARY: the FDIC by any of the following methods: • Agency Website: https:// www.fdic.gov/resources/regulations/ federal-register-publications/. • Email: comments@fdic.gov. Include the name and number of the collection in the subject line of the message. • Mail: Manny Cabeza (202–898– 3767), Regulatory Counsel, MB–3128, 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 NW building (located on F Street NW), 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: Manny Cabeza, Regulatory Counsel, 202–898–3767, mcabeza@fdic.gov, MB– 3128, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. SUPPLEMENTARY INFORMATION: Proposal To Renew the Following Currently Approved Collection of Information 1. Title: CRA Sunshine. OMB Number: None. Affected Public: Insured state nonmember banks and state savings associations and their affiliates and nongovernmental entities and persons. Burden Estimate: khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY OF ESTIMATED ANNUAL BURDEN (OMB NO. 3064–0139) Information collection (obligation to respond) 1. Type of burden (frequency of response) Reporting burden by covered banks—list of agreements, 12 CFR 346.6(d)(1)(ii) (Mandatory). VerDate Sep<11>2014 20:13 Sep 13, 2022 Jkt 256001 Reporting (On occasion) ............. PO 00000 Frm 00022 Fmt 4703 Number of responses per respondent Number of respondents Sfmt 4703 1 E:\FR\FM\14SEN1.SGM 1 14SEN1 Time per response (HH:MM) 1:00 Annual burden (hours) 1 56418 Federal Register / Vol. 87, No. 177 / Wednesday, September 14, 2022 / Notices SUMMARY OF ESTIMATED ANNUAL BURDEN (OMB NO. 3064–0139)—Continued Number of responses per respondent Annual burden (hours) Type of burden (frequency of response) Reporting burden by covered banks—copies of agreements, 12 CFR 346.6(d)(1)(i) (Mandatory). 3. Reporting burden by NGEPs—copies of agreements, 12 CFR 346.6(c) (Mandatory). 4. Reporting burden by covered banks—annual report, 12 CFR 346.7(b) (Mandatory). 5. Reporting burden by NGEPs—annual report, 12 CFR 346.7(b) (Mandatory). 6. Reporting burden by covered banks—filing NGEP report, 12 CFR 346.7(f)(2)(ii) (Mandatory). 7. Disclosure burden by covered banks—covered agreements to public, 12 CFR 346.6(b) (Mandatory). 8. Disclosure burden by NGEPs—covered agreements to public, 12 CFR 346.6(b) (Mandatory). 9. Disclosure burden by covered banks to NGEPs—CRA affiliate activities, 12 CFR 346.4(b) (Mandatory). Reporting (On occasion) ............. 1 1 1:00 1 Reporting (On occasion) ............. 1 1 1:00 1 Reporting (Annual) ...................... 3 1 4:00 12 Reporting (Annual) ...................... 4 1 4:00 16 Reporting (Annual) ...................... 3 1 1:00 3 Disclosure (On occasion) ............ 3 1 1:00 3 Disclosure (On occasion) ............ 4 1 1:00 4 Disclosure (On occasion) ............ 1 1 1:00 1 Total Annual Burden (Hours): ......... ...................................................... ........................ ........................ ........................ 42 2. Number of respondents Time per response (HH:MM) Information collection (obligation to respond) Source: FDIC. General Description of Collection: This collection implements a statutory requirement imposing reporting, disclosure and recordkeeping requirements on some community reinvestment-related agreements between insured depository institutions or affiliates, and nongovernmental entities or persons. The information assists interested members of the public in assessing whether the parties are fulfilling their agreements, and helps the agencies understand how the institutions they regulate are fulfilling their CRA responsibilities. There is no change in the method or substance of the collection. The overall reduction in burden hours is the result of economic fluctuation. In particular, the decline in the estimated overall annual time burden from 100 hours in 2021 to 42 hours in 2022 is the result of a reduction in the number of banks and NGEPs reporting. 2. Title: Qualifications for Failed Bank Acquisitions. OMB Number: 3064–0169. Form Number: None. Affected Public: Insured state nonmember banks and state savings associations. Burden Estimate: khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY OF ESTIMATED ANNUAL BURDEN (OMB NO. 3064–0169) Number of responses per respondent Number of respondents Time per response (HH:MM) Information collection (obligation to respond) Type of burden (frequency of response) Annual burden (hours) 1. Section D—Investor Reports on Affiliates (Required to Obtain or Retain a Benefit). 2. Section E—Maintenance of Business Books and Records (Required to Obtain or Retain a Benefit). 3. Section I—Disclosures Regarding Investors and Entities in Ownership Chain (Required to Obtain or Retain a Benefit). Third-Party Disclosure (Annual) ...... 3 12 2:00 72 Recordkeeping (Annual) .................. 3 4 2:00 24 Reporting (On occasion) .................. 1 1 4:00 4 Total Annual Burden: ................. .......................................................... ........................ ........................ ........................ 100 Source: FDIC. General Description of Collection: The FDIC’s policy statement on Qualifications for Failed Bank Acquisitions provides guidance to private capital investors interested in VerDate Sep<11>2014 18:31 Sep 13, 2022 Jkt 256001 acquiring or investing in failed insured depository institutions regarding the terms and conditions for such investments or acquisitions. The information collected pursuant to the PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 policy statement allows the FDIC to evaluate, among other things, whether such investors (and their related interests) could negatively impact the Deposit Insurance Fund, increase E:\FR\FM\14SEN1.SGM 14SEN1 Federal Register / Vol. 87, No. 177 / Wednesday, September 14, 2022 / Notices OMB Number: 3064–0189. Form Number: None. Affected Public: Insured state nonmember banks and state savings associations. Burden Estimate: private capital investors have attempted to bid on failed banks in the years since the last financial crisis. FDIC is using a placeholder estimate of 1 respondent in recognition that a private capital group could participate in the bidding process. 3. Title: Stress Testing Recordkeeping and Reporting. resolution costs, or operate in a manner that conflict with statutory safety and soundness principles and compliance requirements. There is no change in the method or substance of the collection. The overall reduction in burden hours is due to economic fluctuations. In particular, no 56419 SUMMARY OF ESTIMATED ANNUAL BURDEN (OMB NO. 3064–0189) Number of responses per respondent Number of respondents Time per response (HH:MM) Information collection (obligation to respond) Type of burden (frequency of response) Annual burden (hours) 1. Annual Stress Test Reporting Template and Documentation for covered banks, 12 CFR Part 325.6 (Mandatory) *. 2. Methodologies and Practices for covered banks, 12 CFR Part 325.5 (Mandatory) *. 3. Publication—covered banks, 12 CFR Part 325.7 (Mandatory) *. 4. Documentation of Assumptions, Uncertainties and Limitations for FDIC-supervised IDIs with total consolidated assets of $10 billion or more, 2009 Interagency Guidance (Voluntary). 5. Summary of Test Result for FDICsupervised IDIs with total consolidated assets of $10 billion or more, 2009 Interagency Guidance (Voluntary). 6. Policies and Procedures for FDICsupervised IDIs with total consolidated assets of $10 billion or more, 2009 Interagency Guidance (Voluntary). Reporting (Biennial) ......................... 1 1 80:00 80 Recordkeeping (Biennial) ................ 1 1 213:00 213 Third-Party Disclosure (Biennial) ..... 1 1 53:00 53 Recordkeeping (Annual) .................. 56 1 40:00 2,240 Recordkeeping (Annual) .................. 56 1 40:00 2,240 Recordkeeping (Annual) .................. 5 1 180:00 900 Total Annual Burden (Hours): .... .......................................................... ........................ ........................ ........................ 5,726 khammond on DSKJM1Z7X2PROD with NOTICES Source: FDIC. General Description of Collection: The Federal Deposit Insurance Corporation (FDIC) has issued a rule requiring periodic stress testing by FDICsupervised institutions having more than $250 billion in total assets, consistent with changes made by Section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). Section 165(i)(2) of the Dodd-Frank Act requires each primary Federal regulator to issue consistent and comparable regulations to: (1) ensure that certain financial companies conduct stress tests; (2) establish the form and content of the required reports of such stress tests, and (3) require companies to publish a summary of the stress test results. As originally enacted, section 165(i)(2)(C) applied to all IDIs with average total consolidated assets of $10 billion or greater, required such IDIs to conduct annual stress tests, and required the use of three scenarios: baseline, adverse, and severely adverse. Consistent with VerDate Sep<11>2014 18:31 Sep 13, 2022 Jkt 256001 the requirements of section 165(i)(2)(C), as originally enacted, the FDIC published its Final Rule implementing Section 165(i)(2) on October 15, 2012.1 The requirements under part 325 applied to FDIC-supervised IDIs with average total consolidated assets of $10 billion or greater. The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), enacted on May 24, 2018, amended certain aspects of the company-run stress-testing requirements in section 165(i)(2) of the Dodd-Frank Act. Specifically, section 401 of EGRRCPA raises the minimum asset threshold from $10 billion 2 to 1 See https://www.govinfo.gov/content/pkg/FR2012-10-15/pdf/FR-2012-10-15.pdf (pp. 8–18). While the Dodd-Frank Act specified a total consolidated asset size threshold of $10 billion, it did not specify a calculation methodology. As such, the FDIC’s implementing regulations determined applicability by assessing average total consolidated assets over the last four consecutive Call Reports. 2 See https://www.govinfo.gov/content/pkg/FR2012-10-15/pdf/2012-25194.pdf. PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 $250 billion; 3 replaces the requirement for covered banks to conduct stress tests ‘‘annually’’ with the requirement to conduct stress tests ‘‘periodically;’’ and no longer requires the ‘‘adverse’’ stresstesting scenario, thus reducing the number of required stress test scenarios from three to two. EGRRCPA also makes certain conforming and technical changes that were previously included in an April 2018 notice of proposed rulemaking 4 that was superseded, in part, by the enactment of EGRRCPA. The EGRRCPA amendments to the section 165(i)(2) stress testing requirements became effective eighteen months after enactment. 3 See https://www.govinfo.gov/content/pkg/FR2019-10-24/pdf/2019-23036.pdf. 4 https://www.federalregister.gov/documents/ 2018/04/02/2018-06162/annual-stress-testapplicability-transition-for-covered-banks-with-50billion-or-more-in-assets. E:\FR\FM\14SEN1.SGM 14SEN1 56420 Federal Register / Vol. 87, No. 177 / Wednesday, September 14, 2022 / Notices The FDIC’s Final Rule 5 implementing EGRRCPA specified that, in light of the frequency change from ‘‘annually’’ to ‘‘periodically,’’ stress tests would be conducted biennially, unless the covered bank is consolidated under a bank holding company that is required by Federal Reserve Board to conduct annual stress tests, in which case such IDI subsidiaries are also to conduct annual stress tests.6 The aspects of part 325 that constitute an information collection are those that require a banking organization to (i) file stress test reports to be filed periodically with the FDIC and the Board of Governors of the Federal Reserve System (the Board) in the time, manner, and form specified by the FDIC (12 CFR part 325.6); (ii) establish and maintain a system of controls, oversight, and documentation, including policies and procedures that describe the covered bank’s stress test practices and methodologies, as well as processes for updating such bank’s stress test practices, as well as specific calculations that must be made by the banking organization during its stress tests (12 CFR part 325.5); and (iii) publish a summary of the results of its stress tests (12 CFR part 325.7). On May 17, 2012, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Board of Governors of the Federal Reserve (FRB), published the 2012 Interagency Guidance on the use of stress testing as a means to better understand the range of a banking organization’s potential risk exposures. The guidance is intended for IDIs with total consolidated assets of more than $10 billion 7 and provides an overview of how a banking organization should structure its stress testing activities to ensure they fit into the banking organization’s overall risk management program. The purpose of the guidance is to outline broad principles for a satisfactory stress testing framework and describe the manner in which stress testing should be used, that is as an integral component of risk management applicable at various levels of aggregation within a banking organization as well as a tool for capital and liquidity planning. The 2012 Interagency Guidance recommends that IDIs stress test in coordination with a their ‘‘overall strategy and annual planning cycles’’ and assess and review their stress testing frameworks at least once a year to ensure that stress testing coverage is comprehensive, tests are relevant and current, methodologies are sound, and results are properly considered.’’ The aspects of the 2012 Interagency Guidance that constitute an information collection are the provisions that state a banking organization should (i) have a stress testing framework that includes clearly defined objectives, welldesigned scenarios tailored to the banking organization’s business and risks, well documented assumptions, conceptually sound methodologies to assess potential impact on the banking organization’s financial condition (Section II); (ii) maintain an internal summary of test results to document at a high level the range of its stress testing activities and outcomes, as well as proposed follow-up actions (Section III); and (iii) have policies and procedures for a stress testing framework (Section VI). There has been no change in the substance or methodology of this information collection. The 1,386 hour increase in total estimated annual burden from 4,340 hours in 2019 to 5,726 hours currently is driven by an increase in the number of FDICsupervised IDIs that have at least $10 billion in total consolidated assets, which results in an increase in the estimated number of respondents for IC 4 and IC 5 from 39 to 56 each, as well as an increase in the estimated number of annual respondents in IC 6 from 1 to 5. This change is attenuated by the change in stress testing frequency for institutions subject to stress testing requirements under the Dodd-Frank Act, as amended by EGRRCPA, from annually to biennially. 4. Title: Recordkeeping for Timely Deposit Insurance Determination. OMB Number: 3064–0202. Form Number: None. Affected Public: Insured state nonmember banks and state savings associations. Burden Estimate: SUMMARY OF ESTIMATED ANNUAL BURDEN (OMB NO. 3064–0202) Implementation—Lowest Complexity, 12 CFR 370 (Mandatory). 2. Implementation—Middle Complexity, 12 CFR 370 (Mandatory). 3. Implementation—Highest Complexity, 12 CFR 370 (Mandatory). 4. Ongoing—Lowest Complexity, 12 CFR 370 (Mandatory). 5. Ongoing—Middle Complexity, 12 CFR 370 (Mandatory). 6. Ongoing—Highest Complexity, 12 CFR 370 (Mandatory). 7. Request for Exception, 12 CFR 370.8(b) (RtoB). 8. Request for Release, 12 CFR 370.8(c) (RtoB). Recordkeeping (Annual) .................. 1 1 3145:00 3,145 Recordkeeping (Annual) .................. 1 1 5960:00 5,960 Recordkeeping (Annual) .................. 1 1 36307:00 36,307 Recordkeeping (Annual) .................. 3 1 5:00 15 Recordkeeping (Annual) .................. 15 1 60:00 900 Recordkeeping (Annual) .................. 10 1 20:00 200 Reporting (On occasion) .................. 1 1 20:00 20 Reporting (On occasion) .................. 1 1 200:00 200 5 See https://www.govinfo.gov/content/pkg/FR2019-10-24/pdf/2019-23036.pdf. 6 See https://www.federalregister.gov/documents/ 2018/11/29/2018-24464/prudential-standards-forlarge-bank-holding-companies-and-savings-andloan-holding-companies—Category I and Category II bank holding companies and their IDI subsidiaries are required to stress test annually. VerDate Sep<11>2014 18:31 Sep 13, 2022 Jkt 256001 Number of respondents Time per response (HH:MM) Type of burden (frequency of response) 1. khammond on DSKJM1Z7X2PROD with NOTICES Number of responses per respondent Information collection (obligation to respond) 7 The $10 billion asset threshold in the 2012 Interagency Guidance was calculated using total consolidated assets as of the most recent period, instead of the four-quarter rolling average of total consolidated assets that was used in determining eligibility for stress tests under the Dodd-Frank Act. However, the 2012 Interagency Guidance also recommends that ‘‘banking organizations with PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 Annual burden (hours) assets near the threshold should use reasonable judgment and consider, in conjunction with their primary federal supervisor as appropriate, whether they should consider preparing to follow the guidance.’’ See https://www.federalregister.gov/ documents/2012/05/17/2012-11989/supervisoryguidance-on-stress-testing-for-bankingorganizations-with-more-than-10-billion-in-total. E:\FR\FM\14SEN1.SGM 14SEN1 56421 Federal Register / Vol. 87, No. 177 / Wednesday, September 14, 2022 / Notices SUMMARY OF ESTIMATED ANNUAL BURDEN (OMB NO. 3064–0202)—Continued Number of responses per respondent Number of respondents Time per response (HH:MM) Information collection (obligation to respond) Type of burden (frequency of response) Annual burden (hours) 9. Request for Extension, 12 CFR 370.6(b) (RtoB). 10. Request for Exemption, 12 CFR 370.8(a) (RtoB). 11. Annual Certification and Report, 12 CFR 370.10(a) (Mandatory). Reporting (On occasion) .................. 1 1 162:00 162 Reporting (On occasion) .................. 1 1 163:00 163 Reporting (Annual) ........................... 30 1 186:00 5,580 Total Annual Burden (Hours): .... .......................................................... ........................ ........................ ........................ 52,652 Source: FDIC. khammond on DSKJM1Z7X2PROD with NOTICES General Description of Collection: When a bank fails, the FDIC must provide depositors insured funds ‘‘as soon as possible’’ after failure while also resolving the failed bank in the least costly manner. The 12 CFR part 370 facilitates prompt payment of FDICinsured deposits when large insured depository institutions fail. The rule requires insured depository institutions that have two million or more deposit accounts (‘‘covered institutions’’), to maintain complete and accurate data on each depositor’s ownership interest by right and capacity for all of the covered institution’s deposit accounts. The covered institutions are required to develop the capability to calculate the insured and uninsured amounts for each deposit owner, by ownership right and capacity, for all deposit accounts. This data would be used by the FDIC to make timely deposit insurance determinations in the event of a covered insured depository institution’s failure. There is no change in the method or substance of the collection. The overall reduction in burden hours arises almost entirely from the reduction in the number of respondents for ICs 1–3 capturing the implementation burdens, especially the reduction in the number of covered institutions of Highest Complexity. The reduction for that IC alone is almost 400,000 hours per year. Request for Comment Comments are invited on: (a) Whether the collections of information are 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 collections, including the validity of the methodology and assumptions used; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collections of information on respondents, including through the use of automated collection techniques or other forms of information VerDate Sep<11>2014 18:31 Sep 13, 2022 Jkt 256001 technology. All comments will become a matter of public record. Federal Deposit Insurance Corporation. Dated at Washington, DC, on September 9, 2022. James P. Sheesley, Assistant Executive Secretary. [FR Doc. 2022–19803 Filed 9–13–22; 8:45 am] BILLING CODE 6714–01–P FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company The notificants listed below have applied under the Change in Bank Control Act (Act) (12 U.S.C. 1817(j)) and § 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the applications are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The public portions of the applications listed below, as well as other related filings required by the Board, if any, are available for immediate inspection at the Federal Reserve Bank(s) indicated below and at the offices of the Board of Governors. This information may also be obtained on an expedited basis, upon request, by contacting the appropriate Federal Reserve Bank and from the Board’s Freedom of Information Office at https://www.federalreserve.gov/foia/ request.htm. Interested persons may express their views in writing on the standards enumerated in paragraph 7 of the Act. Comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors, Ann E. Misback, Secretary of the Board, 20th Street and Constitution Avenue NW, Washington DC 20551–0001, not later than September 29, 2022. A. Federal Reserve Bank of Atlanta (Erien O. Terry, Assistant Vice PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 President) 1000 Peachtree Street NE, Atlanta, Georgia 30309. Comments can also be sent electronically to Applications.Comments@atl.frb.org: 1. Strategic Value Investors, LP; Strategic Value Bank Partners, LLC; Strategic Value Opportunities, LP; Strategic Value Private Partners, LLC; and Benjamin Mackovak and Martin Adams, each a managing member of Strategic Value Bank Partners, LLC, and Strategic Value Private Partners, LLC, all of Cleveland, Ohio; as a group acting in concert, to acquire additional voting shares of FineMark Holdings, Inc., and thereby indirectly acquire voting shares of FineMark National Bank & Trust, both of Fort Myers, Florida. B. Federal Reserve Bank of Chicago (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690–1414: 1. Bernard Bennett Banks, Evanston, Illinois, as trustee of a to-be-formed voting trust, Miami, Florida, for the benefit of Stephen Calk, Miami, Florida; to acquire voting shares of National Bancorp Holdings, Inc., and thereby indirectly acquire voting shares of The Federal Savings Bank, both of Chicago, Illinois. This notification replaces and supersedes the document published on 09–02–2022 at 87 FR 54217. Board of Governors of the Federal Reserve System. Michele Taylor Fennell, Deputy Associate Secretary of the Board. [FR Doc. 2022–19862 Filed 9–13–22; 8:45 am] BILLING CODE P FEDERAL RESERVE SYSTEM Proposed Agency Information Collection Activities; Comment Request Board of Governors of the Federal Reserve System. ACTION: Notice, request for comment. AGENCY: The Board of Governors of the Federal Reserve System (Board) invites SUMMARY: E:\FR\FM\14SEN1.SGM 14SEN1

Agencies

[Federal Register Volume 87, Number 177 (Wednesday, September 14, 2022)]
[Notices]
[Pages 56417-56421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19803]


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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0139; -0169; -0189; -0202]


Agency Information Collection Activities: Proposed Collection 
Renewal; Comment Request

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

-----------------------------------------------------------------------

SUMMARY: The FDIC, as part of its obligations under the Paperwork 
Reduction Act of 1995 (PRA), invites the general public and other 
Federal agencies to take this opportunity to comment on the renewal of 
the existing information collections described below (OMB Control No. 
3064-0139, -0169, -0189, and--0202).

DATES: Comments must be submitted on or before November 14, 2022.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
     Agency Website: https://www.fdic.gov/resources/regulations/federal-register-publications/.
     Email: [email protected]. Include the name and number of 
the collection in the subject line of the message.
     Mail: Manny Cabeza (202-898-3767), Regulatory Counsel, MB-
3128, 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 NW building (located on F Street 
NW), 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: Manny Cabeza, Regulatory Counsel, 202-
898-3767, [email protected], MB-3128, Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION:

Proposal To Renew the Following Currently Approved Collection of 
Information

    1. Title: CRA Sunshine.
    OMB Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations and their affiliates and nongovernmental entities and 
persons.
    Burden Estimate:

                                                 Summary of Estimated Annual Burden (OMB No. 3064-0139)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             Number of       Time per
Information collection (obligation to        Type of burden (frequency of response)          Number of     responses per     response      Annual burden
               respond)                                                                     respondents     respondent        (HH:MM)         (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Reporting burden by covered banks-- Reporting (On occasion)..........................               1               1            1:00               1
 list of agreements, 12 CFR
 346.6(d)(1)(ii) (Mandatory).

[[Page 56418]]

 
2. Reporting burden by covered banks-- Reporting (On occasion)..........................               1               1            1:00               1
 copies of agreements, 12 CFR
 346.6(d)(1)(i) (Mandatory).
3. Reporting burden by NGEPs--copies   Reporting (On occasion)..........................               1               1            1:00               1
 of agreements, 12 CFR 346.6(c)
 (Mandatory).
4. Reporting burden by covered banks-- Reporting (Annual)...............................               3               1            4:00              12
 annual report, 12 CFR 346.7(b)
 (Mandatory).
5. Reporting burden by NGEPs--annual   Reporting (Annual)...............................               4               1            4:00              16
 report, 12 CFR 346.7(b) (Mandatory).
6. Reporting burden by covered banks-- Reporting (Annual)...............................               3               1            1:00               3
 filing NGEP report, 12 CFR
 346.7(f)(2)(ii) (Mandatory).
7. Disclosure burden by covered        Disclosure (On occasion).........................               3               1            1:00               3
 banks--covered agreements to public,
 12 CFR 346.6(b) (Mandatory).
8. Disclosure burden by NGEPs--        Disclosure (On occasion).........................               4               1            1:00               4
 covered agreements to public, 12 CFR
 346.6(b) (Mandatory).
9. Disclosure burden by covered banks  Disclosure (On occasion).........................               1               1            1:00               1
 to NGEPs--CRA affiliate activities,
 12 CFR 346.4(b) (Mandatory).
                                                                                         ---------------------------------------------------------------
    Total Annual Burden (Hours):.....  .................................................  ..............  ..............  ..............              42
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: FDIC.

    General Description of Collection: This collection implements a 
statutory requirement imposing reporting, disclosure and recordkeeping 
requirements on some community reinvestment-related agreements between 
insured depository institutions or affiliates, and nongovernmental 
entities or persons. The information assists interested members of the 
public in assessing whether the parties are fulfilling their 
agreements, and helps the agencies understand how the institutions they 
regulate are fulfilling their CRA responsibilities.
    There is no change in the method or substance of the collection. 
The overall reduction in burden hours is the result of economic 
fluctuation. In particular, the decline in the estimated overall annual 
time burden from 100 hours in 2021 to 42 hours in 2022 is the result of 
a reduction in the number of banks and NGEPs reporting.
    2. Title: Qualifications for Failed Bank Acquisitions.
    OMB Number: 3064-0169.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                                 Summary of Estimated Annual Burden (OMB No. 3064-0169)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             Number of       Time per
 Information collection (obligation         Type of burden (frequency of response)           Number of     responses per     response      Annual burden
             to respond)                                                                    respondents     respondent        (HH:MM)         (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Section D--Investor Reports on     Third-Party Disclosure (Annual)...................               3              12            2:00              72
 Affiliates (Required to Obtain or
 Retain a Benefit).
2. Section E--Maintenance of          Recordkeeping (Annual)............................               3               4            2:00              24
 Business Books and Records
 (Required to Obtain or Retain a
 Benefit).
3. Section I--Disclosures Regarding   Reporting (On occasion)...........................               1               1            4:00               4
 Investors and Entities in Ownership
 Chain (Required to Obtain or Retain
 a Benefit).
                                                                                         ---------------------------------------------------------------
    Total Annual Burden:............  ..................................................  ..............  ..............  ..............             100
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: FDIC.

    General Description of Collection: The FDIC's policy statement on 
Qualifications for Failed Bank Acquisitions provides guidance to 
private capital investors interested in acquiring or investing in 
failed insured depository institutions regarding the terms and 
conditions for such investments or acquisitions. The information 
collected pursuant to the policy statement allows the FDIC to evaluate, 
among other things, whether such investors (and their related 
interests) could negatively impact the Deposit Insurance Fund, increase

[[Page 56419]]

resolution costs, or operate in a manner that conflict with statutory 
safety and soundness principles and compliance requirements.
    There is no change in the method or substance of the collection. 
The overall reduction in burden hours is due to economic fluctuations. 
In particular, no private capital investors have attempted to bid on 
failed banks in the years since the last financial crisis. FDIC is 
using a placeholder estimate of 1 respondent in recognition that a 
private capital group could participate in the bidding process.
    3. Title: Stress Testing Recordkeeping and Reporting.
    OMB Number: 3064-0189.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                                 Summary of Estimated Annual Burden (OMB No. 3064-0189)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             Number of       Time per
 Information collection (obligation         Type of burden (frequency of response)           Number of     responses per     response      Annual burden
             to respond)                                                                    respondents     respondent        (HH:MM)         (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Annual Stress Test Reporting       Reporting (Biennial)..............................               1               1           80:00              80
 Template and Documentation for
 covered banks, 12 CFR Part 325.6
 (Mandatory) *.
2. Methodologies and Practices for    Recordkeeping (Biennial)..........................               1               1          213:00             213
 covered banks, 12 CFR Part 325.5
 (Mandatory) *.
3. Publication--covered banks, 12     Third-Party Disclosure (Biennial).................               1               1           53:00              53
 CFR Part 325.7 (Mandatory) *.
4. Documentation of Assumptions,      Recordkeeping (Annual)............................              56               1           40:00           2,240
 Uncertainties and Limitations for
 FDIC-supervised IDIs with total
 consolidated assets of $10 billion
 or more, 2009 Interagency Guidance
 (Voluntary).
5. Summary of Test Result for FDIC-   Recordkeeping (Annual)............................              56               1           40:00           2,240
 supervised IDIs with total
 consolidated assets of $10 billion
 or more, 2009 Interagency Guidance
 (Voluntary).
6. Policies and Procedures for FDIC-  Recordkeeping (Annual)............................               5               1          180:00             900
 supervised IDIs with total
 consolidated assets of $10 billion
 or more, 2009 Interagency Guidance
 (Voluntary).
                                                                                         ---------------------------------------------------------------
    Total Annual Burden (Hours):....  ..................................................  ..............  ..............  ..............           5,726
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: FDIC.

    General Description of Collection: The Federal Deposit Insurance 
Corporation (FDIC) has issued a rule requiring periodic stress testing 
by FDIC-supervised institutions having more than $250 billion in total 
assets, consistent with changes made by Section 401 of the Economic 
Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). 
Section 165(i)(2) of the Dodd-Frank Act requires each primary Federal 
regulator to issue consistent and comparable regulations to: (1) ensure 
that certain financial companies conduct stress tests; (2) establish 
the form and content of the required reports of such stress tests, and 
(3) require companies to publish a summary of the stress test results. 
As originally enacted, section 165(i)(2)(C) applied to all IDIs with 
average total consolidated assets of $10 billion or greater, required 
such IDIs to conduct annual stress tests, and required the use of three 
scenarios: baseline, adverse, and severely adverse. Consistent with the 
requirements of section 165(i)(2)(C), as originally enacted, the FDIC 
published its Final Rule implementing Section 165(i)(2) on October 15, 
2012.\1\ The requirements under part 325 applied to FDIC-supervised 
IDIs with average total consolidated assets of $10 billion or greater.
---------------------------------------------------------------------------

    \1\ See https://www.govinfo.gov/content/pkg/FR-2012-10-15/pdf/FR-2012-10-15.pdf (pp. 8-18). While the Dodd-Frank Act specified a 
total consolidated asset size threshold of $10 billion, it did not 
specify a calculation methodology. As such, the FDIC's implementing 
regulations determined applicability by assessing average total 
consolidated assets over the last four consecutive Call Reports.
---------------------------------------------------------------------------

    The Economic Growth, Regulatory Relief, and Consumer Protection Act 
(EGRRCPA), enacted on May 24, 2018, amended certain aspects of the 
company-run stress-testing requirements in section 165(i)(2) of the 
Dodd-Frank Act. Specifically, section 401 of EGRRCPA raises the minimum 
asset threshold from $10 billion \2\ to $250 billion; \3\ replaces the 
requirement for covered banks to conduct stress tests ``annually'' with 
the requirement to conduct stress tests ``periodically;'' and no longer 
requires the ``adverse'' stress-testing scenario, thus reducing the 
number of required stress test scenarios from three to two. EGRRCPA 
also makes certain conforming and technical changes that were 
previously included in an April 2018 notice of proposed rulemaking \4\ 
that was superseded, in part, by the enactment of EGRRCPA. The EGRRCPA 
amendments to the section 165(i)(2) stress testing requirements became 
effective eighteen months after enactment.
---------------------------------------------------------------------------

    \2\ See https://www.govinfo.gov/content/pkg/FR-2012-10-15/pdf/2012-25194.pdf.
    \3\ See https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23036.pdf.
    \4\ https://www.federalregister.gov/documents/2018/04/02/2018-06162/annual-stress-test-applicability-transition-for-covered-banks-with-50-billion-or-more-in-assets.

---------------------------------------------------------------------------

[[Page 56420]]

    The FDIC's Final Rule \5\ implementing EGRRCPA specified that, in 
light of the frequency change from ``annually'' to ``periodically,'' 
stress tests would be conducted biennially, unless the covered bank is 
consolidated under a bank holding company that is required by Federal 
Reserve Board to conduct annual stress tests, in which case such IDI 
subsidiaries are also to conduct annual stress tests.\6\
---------------------------------------------------------------------------

    \5\ See https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23036.pdf.
    \6\ See https://www.federalregister.gov/documents/2018/11/29/2018-24464/prudential-standards-for-large-bank-holding-companies-and-savings-and-loan-holding-companies--Category I and Category II 
bank holding companies and their IDI subsidiaries are required to 
stress test annually.
---------------------------------------------------------------------------

    The aspects of part 325 that constitute an information collection 
are those that require a banking organization to (i) file stress test 
reports to be filed periodically with the FDIC and the Board of 
Governors of the Federal Reserve System (the Board) in the time, 
manner, and form specified by the FDIC (12 CFR part 325.6); (ii) 
establish and maintain a system of controls, oversight, and 
documentation, including policies and procedures that describe the 
covered bank's stress test practices and methodologies, as well as 
processes for updating such bank's stress test practices, as well as 
specific calculations that must be made by the banking organization 
during its stress tests (12 CFR part 325.5); and (iii) publish a 
summary of the results of its stress tests (12 CFR part 325.7).
    On May 17, 2012, the Federal Deposit Insurance Corporation (FDIC), 
the Office of the Comptroller of the Currency (OCC), and the Board of 
Governors of the Federal Reserve (FRB), published the 2012 Interagency 
Guidance on the use of stress testing as a means to better understand 
the range of a banking organization's potential risk exposures. The 
guidance is intended for IDIs with total consolidated assets of more 
than $10 billion \7\ and provides an overview of how a banking 
organization should structure its stress testing activities to ensure 
they fit into the banking organization's overall risk management 
program. The purpose of the guidance is to outline broad principles for 
a satisfactory stress testing framework and describe the manner in 
which stress testing should be used, that is as an integral component 
of risk management applicable at various levels of aggregation within a 
banking organization as well as a tool for capital and liquidity 
planning. The 2012 Interagency Guidance recommends that IDIs stress 
test in coordination with a their ``overall strategy and annual 
planning cycles'' and assess and review their stress testing frameworks 
at least once a year to ensure that stress testing coverage is 
comprehensive, tests are relevant and current, methodologies are sound, 
and results are properly considered.''
---------------------------------------------------------------------------

    \7\ The $10 billion asset threshold in the 2012 Interagency 
Guidance was calculated using total consolidated assets as of the 
most recent period, instead of the four-quarter rolling average of 
total consolidated assets that was used in determining eligibility 
for stress tests under the Dodd-Frank Act. However, the 2012 
Interagency Guidance also recommends that ``banking organizations 
with assets near the threshold should use reasonable judgment and 
consider, in conjunction with their primary federal supervisor as 
appropriate, whether they should consider preparing to follow the 
guidance.'' See https://www.federalregister.gov/documents/2012/05/17/2012-11989/supervisory-guidance-on-stress-testing-for-banking-organizations-with-more-than-10-billion-in-total.
---------------------------------------------------------------------------

    The aspects of the 2012 Interagency Guidance that constitute an 
information collection are the provisions that state a banking 
organization should (i) have a stress testing framework that includes 
clearly defined objectives, well-designed scenarios tailored to the 
banking organization's business and risks, well documented assumptions, 
conceptually sound methodologies to assess potential impact on the 
banking organization's financial condition (Section II); (ii) maintain 
an internal summary of test results to document at a high level the 
range of its stress testing activities and outcomes, as well as 
proposed follow-up actions (Section III); and (iii) have policies and 
procedures for a stress testing framework (Section VI).
    There has been no change in the substance or methodology of this 
information collection. The 1,386 hour increase in total estimated 
annual burden from 4,340 hours in 2019 to 5,726 hours currently is 
driven by an increase in the number of FDIC-supervised IDIs that have 
at least $10 billion in total consolidated assets, which results in an 
increase in the estimated number of respondents for IC 4 and IC 5 from 
39 to 56 each, as well as an increase in the estimated number of annual 
respondents in IC 6 from 1 to 5. This change is attenuated by the 
change in stress testing frequency for institutions subject to stress 
testing requirements under the Dodd-Frank Act, as amended by EGRRCPA, 
from annually to biennially.
    4. Title: Recordkeeping for Timely Deposit Insurance Determination.
    OMB Number: 3064-0202.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                                 Summary of Estimated Annual Burden (OMB No. 3064-0202)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             Number of       Time per
 Information collection (obligation         Type of burden (frequency of response)           Number of     responses per     response      Annual burden
             to respond)                                                                    respondents     respondent        (HH:MM)         (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Implementation--Lowest             Recordkeeping (Annual)............................               1               1         3145:00           3,145
 Complexity, 12 CFR 370 (Mandatory).
2. Implementation--Middle             Recordkeeping (Annual)............................               1               1         5960:00           5,960
 Complexity, 12 CFR 370 (Mandatory).
3. Implementation--Highest            Recordkeeping (Annual)............................               1               1        36307:00          36,307
 Complexity, 12 CFR 370 (Mandatory).
4. Ongoing--Lowest Complexity, 12     Recordkeeping (Annual)............................               3               1            5:00              15
 CFR 370 (Mandatory).
5. Ongoing--Middle Complexity, 12     Recordkeeping (Annual)............................              15               1           60:00             900
 CFR 370 (Mandatory).
6. Ongoing--Highest Complexity, 12    Recordkeeping (Annual)............................              10               1           20:00             200
 CFR 370 (Mandatory).
7. Request for Exception, 12 CFR      Reporting (On occasion)...........................               1               1           20:00              20
 370.8(b) (RtoB).
8. Request for Release, 12 CFR        Reporting (On occasion)...........................               1               1          200:00             200
 370.8(c) (RtoB).

[[Page 56421]]

 
9. Request for Extension, 12 CFR      Reporting (On occasion)...........................               1               1          162:00             162
 370.6(b) (RtoB).
10. Request for Exemption, 12 CFR     Reporting (On occasion)...........................               1               1          163:00             163
 370.8(a) (RtoB).
11. Annual Certification and Report,  Reporting (Annual)................................              30               1          186:00           5,580
 12 CFR 370.10(a) (Mandatory).
                                                                                         ---------------------------------------------------------------
    Total Annual Burden (Hours):....  ..................................................  ..............  ..............  ..............          52,652
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: FDIC.

    General Description of Collection: When a bank fails, the FDIC must 
provide depositors insured funds ``as soon as possible'' after failure 
while also resolving the failed bank in the least costly manner. The 12 
CFR part 370 facilitates prompt payment of FDIC-insured deposits when 
large insured depository institutions fail. The rule requires insured 
depository institutions that have two million or more deposit accounts 
(``covered institutions''), to maintain complete and accurate data on 
each depositor's ownership interest by right and capacity for all of 
the covered institution's deposit accounts. The covered institutions 
are required to develop the capability to calculate the insured and 
uninsured amounts for each deposit owner, by ownership right and 
capacity, for all deposit accounts. This data would be used by the FDIC 
to make timely deposit insurance determinations in the event of a 
covered insured depository institution's failure.
    There is no change in the method or substance of the collection. 
The overall reduction in burden hours arises almost entirely from the 
reduction in the number of respondents for ICs 1-3 capturing the 
implementation burdens, especially the reduction in the number of 
covered institutions of Highest Complexity. The reduction for that IC 
alone is almost 400,000 hours per year.

Request for Comment

    Comments are invited on: (a) Whether the collections of information 
are 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 collections, 
including the validity of the methodology and assumptions used; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and (d) ways to minimize the burden of the collections of 
information 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.

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on September 9, 2022.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2022-19803 Filed 9-13-22; 8:45 am]
BILLING CODE 6714-01-P