Agency Information Collection Activities: Revision of an Approved Information Collection; Comment Request; Reporting and Recordkeeping Requirements Associated With Liquidity Coverage Ratio: Liquidity Risk Measurement, Standards, and Monitoring, 27001-27003 [2024-07950]

Agencies

• Office of the Comptroller of the Currency
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 89, Number 74 (Tuesday, April 16, 2024)]
[Notices]
[Pages 27001-27003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07950]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Revision of an Approved 
Information Collection; Comment Request; Reporting and Recordkeeping 
Requirements Associated With Liquidity Coverage Ratio: Liquidity Risk 
Measurement, Standards, and Monitoring

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites 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 a revision to its information collection titled, 
``Reporting and Recordkeeping Requirements Associated with Liquidity 
Coverage Ratio: Liquidity Risk Measurement, Standards, and 
Monitoring.''

DATES: Comments must be received by June 17, 2024.

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-
0323, 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) 293-4835.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0323'' 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.
    Following the close of this notice's 60-day comment period, the OCC 
will publish a second notice with a 30-day comment period. 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.
     Viewing Comments Electronically: Go to www.reginfo.gov. 
Hover over the ``Information Collection Review'' tab and click on 
``Information Collection Review'' from the drop-down menu. From the 
``Currently under Review'' drop-down menu, select ``Department of 
Treasury'' and then click ``submit.'' This information collection can 
be located by searching OMB control number ``1557-0323'' or ``Reporting 
and Recordkeeping Requirements Associated with Liquidity Coverage 
Ratio: Liquidity Risk Measurement, Standards, and Monitoring.'' 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, Clearance Officer, 
(202) 649-5490, Chief Counsel's Office, Office of the Comptroller of 
the Currency, 400 7th Street SW, Washington, DC 20219. If you are deaf, 
hard of hearing, or have a speech disability, please dial 7-1-1 to 
access telecommunications relay services.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501 et seq.), 
Federal agencies must obtain approval from the OMB for each collection 
of information that they conduct or sponsor.

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``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 generally 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 revision of this 
collection.
    Title: Reporting and Recordkeeping Requirements Associated with 
Liquidity Coverage Ratio: Liquidity Risk Measurement, Standards, and 
Monitoring. OMB Control No.: 1557-0323.
    Type of Review: Regular.
    Affected Public: Businesses or other for-profit.
    Description: The Office of the Comptroller of the Currency (OCC), 
the Board of Governors of the Federal Reserve System (the Board), and 
the Federal Deposit Insurance Corporation (FDIC) (collectively, the 
agencies) implemented a quantitative liquidity requirement, known as 
the liquidity coverage ratio (LCR), and a stable funding requirement, 
known as the net stable funding ratio (NSFR), that apply to certain 
large banking organizations. For the OCC, these standards are 
implemented through 12 CFR part 50, Liquidity Risk Measurement 
Standards. The LCR is designed to promote the short-term resilience of 
the liquidity risk profile of covered banking organizations and promote 
improvements in the measurement and management of liquidity risk. The 
NSFR is designed to reduce the likelihood that disruptions to a banking 
organization's regular sources of funding will compromise its liquidity 
position, promote effective liquidity risk management, and support the 
ability of banking organizations to provide financial intermediation to 
businesses and households across a range of market conditions.
    Twelve CFR part 50 applies to large national banks and Federal 
savings associations. Banks that must comply with part 50 (covered 
banks) generally include GSIB depository institutions (i.e., depository 
institutions of global systemically important bank holding companies) 
supervised by the OCC; Category II national banks and Federal savings 
associations ; Category III national banks and Federal savings 
associations; \1\ and any national bank or Federal savings association 
for which the OCC has determined that application of part 50 is 
appropriate in light of certain risk factors. The reporting and 
recordkeeping requirements contained in this collection are used to 
monitor covered banks' compliance with the LCR and NSFR.
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    \1\ Category II and III national banks and Federal savings 
associations are defined in 12 CFR 50.3.
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    The OCC proposes to revise the ``Reporting and Recordkeeping 
Requirements Associated with the Liquidity Coverage Ratio: Liquidity 
Risk Measurement, Standards, and Monitoring'' information collection to 
account for three recordkeeping requirements in part 50, contained in 
sections 50.4(a), 50.22(a)(1) and (a)(4), that had not been previously 
cleared by the OCC under the Paperwork Reduction Act (PRA).

Section-by-Section Analysis

    The reporting and recordkeeping requirements are found in sections 
50.4, 50.22, 50.40, 50.109, and 50.110.

Reporting Requirements

    Section 50.40(a) requires a covered bank to notify the OCC on any 
business day when its LCR is calculated to be less than the minimum 
requirement set by section 50.10.
    Section 50.40(b) provides that if a covered bank is required to 
calculate its LCR on the last business day of each calendar month and 
its LCR is below the minimum requirement in section 50.10 on the last 
business day of the applicable calendar month, or if the OCC has 
determined that the covered bank is otherwise materially noncompliant, 
then the covered bank must promptly consult with the OCC to determine 
whether the covered bank must provide to the OCC a plan for achieving 
compliance with the minimum liquidity requirement in section 50.10 and 
all other requirements of part 50. Section 50.40(b) further provides 
that if a covered bank is required to calculate its LCR each business 
day and its LCR is below the minimum requirement in section 50.10 for 
three consecutive business days, or if the OCC has determined that the 
covered bank is otherwise materially noncompliant, the covered bank 
must promptly provide to the OCC a plan for achieving compliance with 
the minimum liquidity requirement in section 50.10 and all other 
requirements of part 50.
    The liquidity plan must include, as applicable, (1) an assessment 
of the covered bank's liquidity position; (2) the actions the covered 
bank has taken and will take to achieve full compliance, including a 
plan for adjusting the covered bank's risk profile, risk management, 
and funding sources in order to achieve full compliance and a plan for 
remediating any operational or management issues that contributed to 
noncompliance; (3) an estimated time frame for achieving full 
compliance; and (4) a commitment to provide a progress report to the 
OCC at least weekly until full compliance is achieved.
    Section 50.110 requires a covered bank to take certain actions 
following any NSFR shortfall. Section 50.110(a) requires a covered bank 
to notify the OCC of the shortfall no later than 10 business days (or 
such other period as the OCC may otherwise require by written notice) 
following the date that any event has occurred that would cause or has 
caused the covered bank's NSFR to be less than 1.0.
    Section 50.110(b) requires a covered bank to submit to the OCC, 
within 10 business days of certain triggering events (or such other 
period as the OCC may otherwise require by written notice), its plan 
for remediation of its NSFR to at least 1.0. This submission is 
required if the covered bank has or should have provided notice to the 
OCC that its NSFR is or will become less than 1.0, the covered bank's 
reports or disclosures to the OCC indicate that the NSFR is less than 
1.0, or the OCC notifies the covered bank that a plan is required and 
provides a reason for requiring such a plan. Section 50.110(b) also 
requires a covered bank that has submitted such a plan to report to the 
OCC at least monthly, or at such other frequency as required by the 
OCC, on its progress to achieve compliance.
    The NSFR remediation plan must include, as applicable, (1) an 
assessment of the covered bank's liquidity profile; (2) the actions the 
covered bank has taken and will take to achieve a net stable funding 
ratio equal to or greater than 1.0 as required under section 50.100, 
including (a) a plan for adjusting the covered bank's liquidity 
profile; (b) a plan for remediating any operational or management 
issues that contributed to noncompliance with the NSFR requirement; and 
(3) an estimated time frame for achieving full compliance with section 
50.100.

Recordkeeping Requirements

    Section 50.4(a)(1) provides that in order for a covered bank to 
recognize an agreement as a qualifying master netting agreement for the 
purpose of section 50.3, the covered bank must conduct a sufficient 
legal review to conclude with

[[Page 27003]]

a well-founded basis (and maintain sufficient written documentation of 
that legal review) that: (i) the agreement meets the requirements of 
the definition of qualifying master netting agreement in section 50.3 
and (ii) in the event of a legal challenge, the relevant judicial and 
administrative authorities would find the agreement to be legal, valid, 
binding, and enforceable under the law of the relevant jurisdictions.
    Section 50.4(a)(2) also requires a covered bank to establish and 
maintain written procedures to monitor possible changes in relevant law 
and to ensure that the agreement continues to satisfy the requirements 
of the definition of qualifying master netting agreement in section 
50.3.
    Section 50.22(a)(1) requires a covered bank to demonstrate the 
operational capability to monetize the bank's HQLA (i.e., high-quality 
liquid assets) by implementing and maintaining procedures and systems 
to monetize any HQLA at any time in accordance with relevant standard 
settlement periods and procedures and periodically monetizing a sample 
of the HQLA that reflects the composition of the covered bank's 
eligible HQLA.
    Section 50.22(a)(2) requires a covered bank to implement policies 
that require the eligible HQLA to be under the control of the 
management function in the covered bank that is charged with managing 
liquidity risk. The management function must evidence its control over 
the HQLA by segregating the HQLA from other assets, with the sole 
intent to use the HQLA as a source of liquidity, or by demonstrating 
the ability to monetize the assets and making the proceeds available to 
the liquidity management function without conflicting with a business 
or risk management strategy of the covered bank.
    Section 50.22(a)(4) requires a covered bank to implement and 
maintain policies and procedures that determine the composition of its 
eligible HQLA on each calculation date by identifying, determining, and 
ensuring certain required steps.
    Section 50.22(a)(5) requires a covered bank to have a documented 
methodology that results in a consistent treatment for determining that 
the covered bank's eligible HQLA meets the requirements of section 
50.22.
    Section 50.109(b) provides that if a covered bank includes an ASF 
(i.e., available stable funding) amount in excess of the RSF (i.e., 
required stable funding) amount of the consolidated subsidiary, it must 
implement and maintain written procedures to identify and monitor 
applicable statutory, regulatory, contractual, supervisory, or other 
restrictions on transferring assets from the consolidated subsidiaries. 
These procedures must document which types of transactions the 
institution could use to transfer assets from a consolidated subsidiary 
to the institution and how these types of transactions comply with 
applicable statutory, regulatory, contractual, supervisory, or other 
restrictions.

Estimated Burden

    Estimated Frequency of Response: On occasion, annual.
    Estimated Number of Respondents: 15.
    Estimated Total Annual Burden: 735 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 OCC, including whether the 
information has practical utility;
    (b) The accuracy of the OCC'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,Office of the Comptroller of the Currency.
[FR Doc. 2024-07950 Filed 4-15-24; 8:45 am]
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