Revisions of Agency Information Collection of a Previously Approved Collection; Request for Comments, 88978-88980 [2023-28302]
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88978
Federal Register / Vol. 88, No. 246 / Tuesday, December 26, 2023 / Notices
By the National Credit Union
Administration Board.
Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2023–28303 Filed 12–22–23; 8:45 am]
BILLING CODE 7535–01–P
NATIONAL CREDIT UNION
ADMINISTRATION
Revisions of Agency Information
Collection of a Previously Approved
Collection; Request for Comments
National Credit Union
Administration (NCUA).
ACTION: Notice of submission to the
Office of Management and Budget.
AGENCY:
As required by the Paperwork
Reduction Act of 1995, The National
Credit Union Administration (NCUA) is
submitting the following extensions and
revisions of currently approved
collections to the Office of Management
and Budget (OMB) for renewal.
DATES: Written comments should be
received on or before January 25, 2024
to be assured consideration.
ADDRESSES: Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
FOR FURTHER INFORMATION CONTACT:
Copies of the submission may be
obtained by contacting Mahala Vixamar
at (703) 718–1155, emailing
PRAComments@ncua.gov, or viewing
the entire information collection request
at www.reginfo.gov.
SUPPLEMENTARY INFORMATION:
OMB Number: 3133–NEW.
Title: Supervisory Stress Test Annual
Data Collection, 12 CFR part 702,
subpart C.
Type of Review: New Collection.
Abstract: The NCUA Board (Board)
has determined, to protect the National
Credit Union Share Insurance Fund
(NCUSIF) and the credit union system,
that the largest Federally Insured Credit
Unions (FICUs) should have systems
and processes in place to monitor and
maintain their capital adequacy.
Subpart C of part 702 of NCUA’s
regulations codifies capital planning
and stress testing requirements for
federally insured credit unions with $10
billion or more in assets (covered credit
unions). Covered credit unions are
further delineated by asset tiers. Tier I
are credit union with $10 billion or
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SUMMARY:
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more in total assets, but less than $15
billion in total assets; tier II are credit
union with $15 billion or more in total
assets, but less than $20 billion in total
assets; and tier III are credit union with
$20 billion or more in total assets. Tier
II and III credit unions are required to
conduct supervisory stress tests and
section 702.306 (b) codifies that NCUA
reserves the right to conduct stress tests
of covered credit unions at any time and
where both NCUA and a covered credit
union have conducted the tests, the
results of NCUA’s tests will determine
whether the covered credit union has
met the requirements of this subpart. To
facilitate NCUA’s ability to conduct
supervisory stress test on covered credit
unions, section 702.306(d) requires that
covered credit unions must provide
NCUA with any relevant qualitative or
quantitative information requested by
NCUA pertinent to capital plans or
stress test under this part.
Affected Public: Private Sector: Notfor-profit institutions.
Estimated Number of Respondents:
12.
Estimated Number of Responses per
Respondent: 1.
Estimated Total Annual Responses:
12.
Estimated Hours per Response: 20.
Estimated Total Annual Burden
Hours: 240.
OMB Number: 3133–0061.
Title: Central Liquidity Facility, 12
CFR part 725.
Type of Review: Extension of a
previously approved collection.
Abstract: Part 725 contains the
regulations implementing the National
Credit Union Central Liquidity Facility
Act, subchapter III of the Federal Credit
Union Act. The NCUA Central Liquidity
Facility is a mixed-ownership
Government corporation within NCUA.
It is managed by the NCUA Board and
is owned by its member credit unions.
The purpose of the Facility is to
improve the general financial stability of
credit unions by meeting their liquidity
needs and thereby encourage savings,
support consumer and mortgage lending
and provide basic financial resources to
all segments of the economy. The
Central Liquidity Facility achieves this
purpose through operation of a Central
Liquidity Fund (CLF). The collection of
information under this part is necessary
for the CLF to determine credit
worthiness, as required by 12 U.S.C.
1795e(2).
Affected Public: Private Sector: Notfor-profit institutions.
Estimated Number of Respondents:
269.
Estimated Number of Responses per
Respondent: 4.260.
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Fmt 4703
Sfmt 4703
Estimated Total Annual Responses:
1,146.
Estimated Hours per Response: 0.603.
Estimated Total Annual Burden
Hours: 691.
OMB Number: 3133–0067.
Title: Corporate Credit Union Monthly
Call Report and Annual Report of
Officers.
Type of Review: Revision of a
currently approved collection.
Abstract: Section 202(a)(1) of the
Federal Credit Union Act (Act) requires
federally insured credit unions to make
reports of condition to the NCUA Board
upon dates selected by it. Corporate
credit unions report this information
monthly on NCUA Form 5310, also
known as the Corporate Credit Union
Call Report. The financial and statistical
information is essential to NCUA in
carrying out its responsibility for
supervising corporate credit unions. The
Federal Credit Union Act, 12 U.S.C.
1762, specifically requires Federal
credit unions to report the identity of
credit union officials. Section 741.6(a)
requires federally-insured credit unions
to submit a Report of Officials annually
to NCUA containing the annual
certification of compliance with security
requirements. The branch information is
requested under the authority of § 741.6
of the NCUA Rules and Regulations.
NCUA utilizes the information to
monitor financial conditions in
corporate credit unions, and to allocate
supervision and examination resources.
Affected Public: Private Sector: Notfor-profit institutions.
Estimated Number of Respondents:
11.
Estimated Number of Responses per
Respondent: 13.
Estimated Total Annual Responses:
143.
Estimated Hours per Response: 3.77.
Estimated Total Annual Burden
Hours: 539.
Reason for Change: The 5310
Corporate Call Report, Profile, and
Corporate Financial Performance
Reports (CFPR) for calendar year 2024
have several changes that entail removal
of references to Current Expected Credit
Loss (CECL) early adoption language;
removal of the Available for Sale Book
Value references; additional
supplemental information for charitable
donation accounts, subordinated debt
purchased from member credit unions,
and additional information about CUSO
investments; additional liquidity,
weighted average life (WAL), and WAL
with 50 percent prepayment
information reporting, and Federal
Reserve Bank Excess Balance Account
reporting; clarification of Information
E:\FR\FM\26DEN1.SGM
26DEN1
Federal Register / Vol. 88, No. 246 / Tuesday, December 26, 2023 / Notices
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System and Technology questions on
the Profile form; and corresponding
updates to the Corporate Financial
Performance Report (CFPR), including a
new template for aggregate CFPRs that
shows weighted average ratios. These
changes have not adjusted the current
burden.
OMB Number: 3133–0199.
Title: Capital Planning and Stress
Testing, 12 CFR 702–E.
Type of Review: Revision of a
currently approved collection.
Abstract: To protect the National
Credit Union Share Insurance Fund
(NCUSIF) and the credit union system,
the largest Federally Insured Credit
Unions (FICUs) need to have systems
and processes in place to monitor and
maintain their capital adequacy.
Subpart C of part 702 of NCUA’s
regulations codifies the capital planning
and stress testing requirements for
federally insured credit unions with $10
billion or more in assets (covered credit
unions). NCUA issues these regulations
under the authority of section 120(a)
requiring their supervised institutions to
conduct annual stress tests. Stress
testing is needed to assess the potential
impact of expected and stressed
economic conditions on the
consolidated earnings, losses, and
capital of a covered credit union over
the planning horizon, taking into
account the current state of the covered
credit union and the covered credit
union’s risks, exposures, strategies, and
activities.
NCUA received one comment from
the 60-Day Notice published at 88 FR
62604. The commenter requested that
NCUA provide additional clarification
regarding the use of the standard form
results reporting templates for purposes
of reporting results of internal capital
planning and analysis. The commenter
noted that multiple items requested in
the SST schedules were not applicable
to internal capital analysis conducted by
the credit union. As an example, the
commenter cited Stress Test Capital and
the Stress Test Capital Ratio currently
required to be reported in the standard
form templates were not applicable to
their internal capital planning and
analysis. The commenter also stated
they felt use of the standard form
reporting templates was redundant and
ineffective whereas their capital plan
includes commentary, analysis and
supporting schedules that bring
important context to the results of that
analysis.
NCUA agrees that some revision and
clarification in the reporting
instructions may be necessary to use the
standard form results reporting
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20:25 Dec 22, 2023
Jkt 262001
templates for purposes of reporting
results of both annual Supervisory
Stress Testing results as well as results
of internal capital adequacy assessment
analysis and planning. We disagree,
however, with the example provided by
the commenter, because Section
702.304(b)(1) of the Rules and
Regulations requires covered credit
unions to include, as a mandatory
element in their annual capital
planning, ‘‘a quarterly assessment of the
expected sources and levels of stress test
capital over the planning horizon that
reflects the covered credit union’s
financial state, size, complexity, risk
profile, scope of operations, and existing
level of capital, assuming both expected
and unfavorable conditions’’. The
requirement to measure stress test
capital as defined in section 702.302 of
the Regulations aside, NCUA
acknowledges that credit unions, as part
of their internal capital adequacy
assessment analysis and planning, may
target different measures. NCUA has
made revisions to the standard form
templates to accommodate reporting of
different capital measures in the balance
sheet tab of the templates. Instructions
and definitions were adjusted
accordingly as well. Furthermore,
NCUA disagrees with the commenter’s
statement that reporting results of
internal capital analysis using the
standard form templates would be
inefficient and redundant as compared
to the detailed analysis, commentary
and supporting schedules contained in
their annual capital plan. As stated in
the initial PRA notification, reporting of
internal capital analysis results in a
standard form manner will allow NCUA
to more efficiently and fairly review
benchmarks and opine on the strength
and reasonableness of credit unions
analyses serving as the foundation of the
capital adequacy assessment and
planning. NCUA acknowledges there
would be some initial burden placed on
credit unions to revise and update
systems and applications used to
generate results of internal capital
analysis in a form exportable to the
reporting templates; however, NCUA
believes that the benefits obtained in
efficiency and fairness of review and
assessment of capital analysis results
outweigh these initial burdens.
The commenter also stated that
NCUA’s inclusion of investment data as
part of the revised annual data request
is duplicative because ONES credit
unions submit other investment data on
a quarterly basis. NCUA agrees with the
commenter that ONES credit unions are
required to submit some instrumentlevel investment data to the ONES
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88979
supervisory team on a quarterly basis.
However, this only covers a portion of
credit union investment activities. The
annual collection of investment data
covered by the PRA notice also captures
instrument-level investment
information in credit union employee
benefit and charitable donation
accounts. These additional instrumentlevel investment data are needed to
model the credit union’s balance sheet
and income statement under stress
scenarios. This information has
historically been collected by NCUA on
an annual basis. While NCUA agrees
that future efforts should work to
combine both investment data
collections, continuing to collect this
data as part of the current annual
collection is still needed.
Affected Public: Private Sector: Notfor-profit institutions.
Estimated Number of Respondents:
12.
Estimated Number of Responses per
Respondent: 1.
Estimated Total Annual Responses:
12.
Estimated Hours per Response:
781.67.
Estimated Total Annual Burden
Hours: 9,380.
Reason for Change: Burden increased
due to the increase in the number of
credit unions meeting the asset size
threshold for capital planning and selfrun stress testing and because of the
updated self-run SST results reporting
template, as well as reporting of internal
capital analysis results on the updated
template.
Request for Comments: Comments
submitted in response to this notice will
be summarized and included in the
request for Office of Management and
Budget approval. All comments will
become a matter of public record. The
public is invited to submit comments
concerning: (a) whether the collection of
information is necessary for the proper
performance of the function of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information, 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 the
information on the respondents,
including the use of automated
collection techniques or other forms of
information technology.
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88980
Federal Register / Vol. 88, No. 246 / Tuesday, December 26, 2023 / Notices
By the National Credit Union
Administration Board.
Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2023–28302 Filed 12–22–23; 8:45 am]
BILLING CODE 7535–01–P
NATIONAL FOUNDATION ON THE
ARTS AND THE HUMANITIES
Institute of Museum and Library
Services
Notice of Proposed Information
Collection Requests: Collection of
Information To Assess the Current
State of Library and Museum
Infrastructure To Identify Infrastructure
Needs
Institute of Museum and
Library Services, National Foundation
on the Arts and the Humanities.
ACTION: Notice, request for comments,
and collection of information.
AGENCY:
The Institute of Museum and
Library Services (IMLS), as part of its
continuing effort to reduce paperwork
and respondent burden, conducts a preclearance consultation program to
provide the public and federal agencies
with an opportunity to comment on
proposed and/or continuing collections
of information in accordance with the
Paperwork Reduction Act. This preclearance consultation program helps to
ensure that requested data will be
provided in the appropriate format; that
respondents’ reporting burden (time and
financial resources) is minimized; that
collection instruments are clearly
understood and cover material to which
respondents can be responsive; and, that
the impact of collection requirements on
respondents can be properly assessed.
DATES: Written comments must be
submitted to the office listed in the
ADDRESSES section below on or before
February 24, 2024.
ADDRESSES: Send comments to: Sandra
Narva, Acting Director of Grants Policy
and Management, Institute of Museum
and Library Services, 955 L’Enfant Plaza
North SW, Suite 4000, Washington, DC
20024–2135. Ms. Narva can be reached
by telephone at 202–653–4634, or by
email at snarva@imls.gov. Office hours
are from 8:30 a.m. to 5 p.m., E.T.,
Monday through Friday, except Federal
holidays. Persons who are deaf or hard
of hearing (TTY users) can contact IMLS
at 202–207–7858 via 711 for TTY-Based
Telecommunications Relay Service.
FOR FURTHER INFORMATION CONTACT: For
a copy of the documents, contact:
Matthew Birnbaum, Ph.D., Director of
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SUMMARY:
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Research and Evaluation, Institute of
Museum and Library Services, 955
L’Enfant Plaza North SW, Suite 4000,
Washington, DC 20024–2135. Dr.
Birnbaum can be reached by telephone:
202–653–4760, or by email at
mbirnbaum@imls.gov. Persons who are
deaf or hard of hearing (TTY users) can
contact IMLS at 202–207–7858 via 711
for TTY-Based Telecommunications
Relay Service.
SUPPLEMENTARY INFORMATION: The
purpose of this notice is to solicit
comments about a proposed IMLS study
of library and museum infrastructure.
This study will follow the requirements
of the House Appropriations Labor,
Health and Human Services
Subcommittee’s 2023 Appropriations
Bill for the Department of Labor (Report
117–403), and the Senate
Appropriations Subcommittee’s
Departments of Labor, Health and
Human Services, and Education, and
Related Agencies Appropriations Act
(2023) (S.4659). IMLS intends to assess
the physical conditions of libraries and
museums to inform potential
grantmaking initiatives focused on
improving library and museum
facilities, including those in
underserved communities and those
impacted by national disasters.
A copy of the proposed information
collection request can be obtained by
contacting the individual listed below
in the FOR FURTHER INFORMATION
CONTACT section of this notice.
IMLS is the primary source of federal
support for the nation’s libraries and
museums. We advance, support, and
empower America’s museums, libraries,
and related organizations through grant
making, research, and policy
development. To learn more, visit
www.imls.gov.
IMLS is particularly interested in
public comments that help the agency
to:
• Evaluate whether the proposed
collection of information appropriately
responds to Congressional direction
authorizing this study.
• Evaluate the accuracy of the
agency’s estimate of the burden of the
proposed collection of information
including the validity of the
methodology and assumptions used.
• Enhance the quality, utility, and
clarity of the information to be
collected.
• Minimize the burden of the
collection of information on those who
are to respond, including using
appropriate automated electronic,
mechanical, or other technological
collection techniques, or other forms of
information technology, e.g., permitting
electronic submissions of response.
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Sfmt 9990
I. Background
IMLS is the primary source of federal
support for the Nation’s libraries and
museums. We advance, support, and
empower America’s museums, libraries,
and related organizations through grant
making, research, and policy
development. To learn more, visit
www.imls.gov.
II. Current Actions
This notice proposes the Collection of
Information to Assess the Current State
of Library and Museum Infrastructure to
Identify Infrastructure Needs
recommended by the U.S. Congress in
Reports 117–403 and S.4659. This
evaluation will enable IMLS to make
well-informed decisions about potential
future investments and funding
allocations to strategically address areas
with the greatest need. The proposed
collection of primary data from key
stakeholders will lead to an
understanding of the diversity of library
and museum facilities. This study will
inform IMLS as to the most critical
needs of library and museum
infrastructures and where to allocate
funding for the most significant impact.
Agency: Institute of Museum and
Library Services.
Title: Collection of Information to
Assess the Current State of Library and
Museum Infrastructure to Identify
Infrastructure Needs.
OMB Control Number: 3137–NEW.
Agency Number: 3137.
Respondents/Affected Public:
Museum and library management;
museum and library associations, state,
municipal, and city level stakeholders.
Total Number of Annual
Respondents: Approximately 500.
Frequency of Response: Expected to
be once per request.
Average Minutes per Response:
Estimated at 30 minutes per response.
Total Estimated Number of Annual
Burden Hours: Approximately 250
hours.
Cost Burden (dollars): Estimated at
$8,844.
Public Comments Invited: Comments
submitted in response to this Notice
will be summarized and/or included in
the request for OMB’s clearance of this
information collection.
Dated: December 20, 2023.
Suzanne Mbollo,
Grants Management Specialist, Institute of
Museum and Library Services.
[FR Doc. 2023–28405 Filed 12–22–23; 8:45 am]
BILLING CODE 7036–01–P
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]]>Agencies
[Federal Register Volume 88, Number 246 (Tuesday, December 26, 2023)]
[Notices]
[Pages 88978-88980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28302]
-----------------------------------------------------------------------
NATIONAL CREDIT UNION ADMINISTRATION
Revisions of Agency Information Collection of a Previously
Approved Collection; Request for Comments
AGENCY: National Credit Union Administration (NCUA).
ACTION: Notice of submission to the Office of Management and Budget.
-----------------------------------------------------------------------
SUMMARY: As required by the Paperwork Reduction Act of 1995, The
National Credit Union Administration (NCUA) is submitting the following
extensions and revisions of currently approved collections to the
Office of Management and Budget (OMB) for renewal.
DATES: Written comments should be received on or before January 25,
2024 to be assured consideration.
ADDRESSES: Written comments and recommendations for the proposed
information collection should be sent within 30 days of publication of
this notice to www.reginfo.gov/public/do/PRAMain. Find this particular
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
FOR FURTHER INFORMATION CONTACT: Copies of the submission may be
obtained by contacting Mahala Vixamar at (703) 718-1155, emailing
[email protected], or viewing the entire information collection
request at www.reginfo.gov.
SUPPLEMENTARY INFORMATION:
OMB Number: 3133-NEW.
Title: Supervisory Stress Test Annual Data Collection, 12 CFR part
702, subpart C.
Type of Review: New Collection.
Abstract: The NCUA Board (Board) has determined, to protect the
National Credit Union Share Insurance Fund (NCUSIF) and the credit
union system, that the largest Federally Insured Credit Unions (FICUs)
should have systems and processes in place to monitor and maintain
their capital adequacy. Subpart C of part 702 of NCUA's regulations
codifies capital planning and stress testing requirements for federally
insured credit unions with $10 billion or more in assets (covered
credit unions). Covered credit unions are further delineated by asset
tiers. Tier I are credit union with $10 billion or more in total
assets, but less than $15 billion in total assets; tier II are credit
union with $15 billion or more in total assets, but less than $20
billion in total assets; and tier III are credit union with $20 billion
or more in total assets. Tier II and III credit unions are required to
conduct supervisory stress tests and section 702.306 (b) codifies that
NCUA reserves the right to conduct stress tests of covered credit
unions at any time and where both NCUA and a covered credit union have
conducted the tests, the results of NCUA's tests will determine whether
the covered credit union has met the requirements of this subpart. To
facilitate NCUA's ability to conduct supervisory stress test on covered
credit unions, section 702.306(d) requires that covered credit unions
must provide NCUA with any relevant qualitative or quantitative
information requested by NCUA pertinent to capital plans or stress test
under this part.
Affected Public: Private Sector: Not-for-profit institutions.
Estimated Number of Respondents: 12.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Responses: 12.
Estimated Hours per Response: 20.
Estimated Total Annual Burden Hours: 240.
OMB Number: 3133-0061.
Title: Central Liquidity Facility, 12 CFR part 725.
Type of Review: Extension of a previously approved collection.
Abstract: Part 725 contains the regulations implementing the
National Credit Union Central Liquidity Facility Act, subchapter III of
the Federal Credit Union Act. The NCUA Central Liquidity Facility is a
mixed-ownership Government corporation within NCUA. It is managed by
the NCUA Board and is owned by its member credit unions. The purpose of
the Facility is to improve the general financial stability of credit
unions by meeting their liquidity needs and thereby encourage savings,
support consumer and mortgage lending and provide basic financial
resources to all segments of the economy. The Central Liquidity
Facility achieves this purpose through operation of a Central Liquidity
Fund (CLF). The collection of information under this part is necessary
for the CLF to determine credit worthiness, as required by 12 U.S.C.
1795e(2).
Affected Public: Private Sector: Not-for-profit institutions.
Estimated Number of Respondents: 269.
Estimated Number of Responses per Respondent: 4.260.
Estimated Total Annual Responses: 1,146.
Estimated Hours per Response: 0.603.
Estimated Total Annual Burden Hours: 691.
OMB Number: 3133-0067.
Title: Corporate Credit Union Monthly Call Report and Annual Report
of Officers.
Type of Review: Revision of a currently approved collection.
Abstract: Section 202(a)(1) of the Federal Credit Union Act (Act)
requires federally insured credit unions to make reports of condition
to the NCUA Board upon dates selected by it. Corporate credit unions
report this information monthly on NCUA Form 5310, also known as the
Corporate Credit Union Call Report. The financial and statistical
information is essential to NCUA in carrying out its responsibility for
supervising corporate credit unions. The Federal Credit Union Act, 12
U.S.C. 1762, specifically requires Federal credit unions to report the
identity of credit union officials. Section 741.6(a) requires
federally-insured credit unions to submit a Report of Officials
annually to NCUA containing the annual certification of compliance with
security requirements. The branch information is requested under the
authority of Sec. 741.6 of the NCUA Rules and Regulations. NCUA
utilizes the information to monitor financial conditions in corporate
credit unions, and to allocate supervision and examination resources.
Affected Public: Private Sector: Not-for-profit institutions.
Estimated Number of Respondents: 11.
Estimated Number of Responses per Respondent: 13.
Estimated Total Annual Responses: 143.
Estimated Hours per Response: 3.77.
Estimated Total Annual Burden Hours: 539.
Reason for Change: The 5310 Corporate Call Report, Profile, and
Corporate Financial Performance Reports (CFPR) for calendar year 2024
have several changes that entail removal of references to Current
Expected Credit Loss (CECL) early adoption language; removal of the
Available for Sale Book Value references; additional supplemental
information for charitable donation accounts, subordinated debt
purchased from member credit unions, and additional information about
CUSO investments; additional liquidity, weighted average life (WAL),
and WAL with 50 percent prepayment information reporting, and Federal
Reserve Bank Excess Balance Account reporting; clarification of
Information
[[Page 88979]]
System and Technology questions on the Profile form; and corresponding
updates to the Corporate Financial Performance Report (CFPR), including
a new template for aggregate CFPRs that shows weighted average ratios.
These changes have not adjusted the current burden.
OMB Number: 3133-0199.
Title: Capital Planning and Stress Testing, 12 CFR 702-E.
Type of Review: Revision of a currently approved collection.
Abstract: To protect the National Credit Union Share Insurance Fund
(NCUSIF) and the credit union system, the largest Federally Insured
Credit Unions (FICUs) need to have systems and processes in place to
monitor and maintain their capital adequacy. Subpart C of part 702 of
NCUA's regulations codifies the capital planning and stress testing
requirements for federally insured credit unions with $10 billion or
more in assets (covered credit unions). NCUA issues these regulations
under the authority of section 120(a) requiring their supervised
institutions to conduct annual stress tests. Stress testing is needed
to assess the potential impact of expected and stressed economic
conditions on the consolidated earnings, losses, and capital of a
covered credit union over the planning horizon, taking into account the
current state of the covered credit union and the covered credit
union's risks, exposures, strategies, and activities.
NCUA received one comment from the 60-Day Notice published at 88 FR
62604. The commenter requested that NCUA provide additional
clarification regarding the use of the standard form results reporting
templates for purposes of reporting results of internal capital
planning and analysis. The commenter noted that multiple items
requested in the SST schedules were not applicable to internal capital
analysis conducted by the credit union. As an example, the commenter
cited Stress Test Capital and the Stress Test Capital Ratio currently
required to be reported in the standard form templates were not
applicable to their internal capital planning and analysis. The
commenter also stated they felt use of the standard form reporting
templates was redundant and ineffective whereas their capital plan
includes commentary, analysis and supporting schedules that bring
important context to the results of that analysis.
NCUA agrees that some revision and clarification in the reporting
instructions may be necessary to use the standard form results
reporting templates for purposes of reporting results of both annual
Supervisory Stress Testing results as well as results of internal
capital adequacy assessment analysis and planning. We disagree,
however, with the example provided by the commenter, because Section
702.304(b)(1) of the Rules and Regulations requires covered credit
unions to include, as a mandatory element in their annual capital
planning, ``a quarterly assessment of the expected sources and levels
of stress test capital over the planning horizon that reflects the
covered credit union's financial state, size, complexity, risk profile,
scope of operations, and existing level of capital, assuming both
expected and unfavorable conditions''. The requirement to measure
stress test capital as defined in section 702.302 of the Regulations
aside, NCUA acknowledges that credit unions, as part of their internal
capital adequacy assessment analysis and planning, may target different
measures. NCUA has made revisions to the standard form templates to
accommodate reporting of different capital measures in the balance
sheet tab of the templates. Instructions and definitions were adjusted
accordingly as well. Furthermore, NCUA disagrees with the commenter's
statement that reporting results of internal capital analysis using the
standard form templates would be inefficient and redundant as compared
to the detailed analysis, commentary and supporting schedules contained
in their annual capital plan. As stated in the initial PRA
notification, reporting of internal capital analysis results in a
standard form manner will allow NCUA to more efficiently and fairly
review benchmarks and opine on the strength and reasonableness of
credit unions analyses serving as the foundation of the capital
adequacy assessment and planning. NCUA acknowledges there would be some
initial burden placed on credit unions to revise and update systems and
applications used to generate results of internal capital analysis in a
form exportable to the reporting templates; however, NCUA believes that
the benefits obtained in efficiency and fairness of review and
assessment of capital analysis results outweigh these initial burdens.
The commenter also stated that NCUA's inclusion of investment data
as part of the revised annual data request is duplicative because ONES
credit unions submit other investment data on a quarterly basis. NCUA
agrees with the commenter that ONES credit unions are required to
submit some instrument-level investment data to the ONES supervisory
team on a quarterly basis. However, this only covers a portion of
credit union investment activities. The annual collection of investment
data covered by the PRA notice also captures instrument-level
investment information in credit union employee benefit and charitable
donation accounts. These additional instrument-level investment data
are needed to model the credit union's balance sheet and income
statement under stress scenarios. This information has historically
been collected by NCUA on an annual basis. While NCUA agrees that
future efforts should work to combine both investment data collections,
continuing to collect this data as part of the current annual
collection is still needed.
Affected Public: Private Sector: Not-for-profit institutions.
Estimated Number of Respondents: 12.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Responses: 12.
Estimated Hours per Response: 781.67.
Estimated Total Annual Burden Hours: 9,380.
Reason for Change: Burden increased due to the increase in the
number of credit unions meeting the asset size threshold for capital
planning and self-run stress testing and because of the updated self-
run SST results reporting template, as well as reporting of internal
capital analysis results on the updated template.
Request for Comments: Comments submitted in response to this notice
will be summarized and included in the request for Office of Management
and Budget approval. All comments will become a matter of public
record. The public is invited to submit comments concerning: (a)
whether the collection of information is necessary for the proper
performance of the function of the agency, including whether the
information will have practical utility; (b) the accuracy of the
agency's estimate of the burden of the collection of information,
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
the information on the respondents, including the use of automated
collection techniques or other forms of information technology.
[[Page 88980]]
By the National Credit Union Administration Board.
Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2023-28302 Filed 12-22-23; 8:45 am]
BILLING CODE 7535-01-P
