[Federal Register Volume 78, Number 172 (Thursday, September 5, 2013)]
[Notices]
[Pages 54684-54685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-21496]


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NATIONAL CREDIT UNION ADMINISTRATION


Agency Information Collection Activities: Submission to OMB for 
Reinstatement, Without Change, of a Previously Approved Collection; 
Comment Request

AGENCY: National Credit Union Administration (NCUA).

ACTION: Request for comment.

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SUMMARY: The NCUA intends to submit the following information 
collection to the Office of Management and Budget (OMB) for review and 
clearance under the Paperwork Reduction Act of 1995 (Pub. L. 104-13, 44 
U.S.C. Chapter 35). This information collection is published to obtain 
comments from the public. On March 22, 2010, the Office of the 
Comptroller of the Currency, Board of Governors of the Federal Reserve 
System, Federal Deposit Insurance Corporation, and National Credit 
Union Administration (the agencies) published in the Federal Register a 
joint final notice (75 FR 13656) implementing the guidance effective on 
May 21, 2010. The Guidance reiterates the process that institutions 
should follow to appropriately identify, measure, monitor, and control 
their funding and liquidity risk. In particular, the Guidance re-
emphasizes the importance of cash flow projections, diversified funding 
sources, stress testing, a cushion of liquid assets, and a formal well-
developed contingency funding plan (CFP) as primary tools for measuring 
and managing liquidity risk. The agencies expect all financial 
institutions \1\ to manage liquidity risk using processes and systems 
that are commensurate with the institution's complexity, risk profile, 
and scope of operations. Liquidity risk management processes and plans 
should be well documented and available for supervisory review. Failure 
to maintain an adequate liquidity risk management process is considered 
an unsafe and unsound practice.
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    \1\ This interagency guidance uses the term ``financial 
institutions'' or ``institutions'' to include banks, saving 
associations, credit unions, affiliated holding companies, state and 
federally chartered U.S. branches and agencies of foreign banks, and 
Edge and agreement corporations.

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DATES: Comments will be accepted until October 7, 2013.

ADDRESSES: Interested parties are invited to submit written comments to 
the NCUA Contact and the OMB Reviewer listed below:

NCUA Contact: Tracy Crews, National Credit Union Administration, 1775 
Duke Street, Alexandria, Virginia 22314-3428, Fax No. 703-837-2861, 
Email: [email protected].
OMB Contact: Office of Management and Budget, ATTN: Desk Officer for 
the National Credit Union Administration, Office of Information and 
Regulatory Affairs, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Requests for additional information, a 
copy of the information collection request, or a copy of submitted 
comments should be directed to Tracy Crews at the National Credit Union 
Administration, 1775 Duke Street,

[[Page 54685]]

Alexandria, VA 22314-3428, or at (703) 518-6444.

SUPPLEMENTARY INFORMATION: 

I. Abstract and Request for Comments

    NCUA is amending/reinstating the collection for 3133-0180. The 
agencies have identified two sections of the Guidance that fall under 
the definition of an information collection. Section 14 states that 
institutions should consider liquidity costs, benefits, and risks in 
strategic planning and budgeting processes. Section 20 requires that 
liquidity risk reports provide aggregate information with sufficient 
supporting detail to enable management to assess the sensitivity of the 
institution to changes in market conditions, its own financial 
performance, and other important risk factors.
    Section 14 of the Guidance states that institutions should consider 
liquidity costs, benefits, and risks in strategic planning and 
budgeting processes. Significant business activities should be 
evaluated for liquidity risk exposure as well as profitability. More 
complex and sophisticated institutions should incorporate liquidity 
costs, benefits, and risks in the internal product pricing, performance 
measurement, and new product approval process for all material business 
lines, products and activities. Incorporating the cost of liquidity 
into these functions should align the risk-taking incentives of 
individual business lines with the liquidity risk exposure their 
activities create for the institution as a whole. The quantification 
and attribution of liquidity risks should be explicit and transparent 
at the line management level and should include consideration of how 
liquidity would be affected under stressed conditions.
    Section 20 of the Guidance would require that liquidity risk 
reports provide aggregate information with sufficient supporting detail 
to enable management to assess the sensitivity of the institution to 
changes in market conditions, its own financial performance, and other 
important risk factors. Institutions should also report on the use of 
and availability of government support, such as lending and guarantee 
programs, and implications on liquidity positions, particularly since 
these programs are generally temporary or reserved as a source for 
contingent funding.
    The documentation specified in the Guidance is maintained by each 
institution; therefore, it is not collected or published by the 
National Credit Union Administration. These recordkeeping requirements 
are documented on occasion. Credit union examiners verify compliance 
with this recordkeeping requirement during examinations. The 
recordkeeping information gathered during the examination process 
informs examiners about the safety and soundness of the financial 
institution's funding and liquidity risk management practices.
    The NCUA requests that you send your comments on this collection to 
the location listed in the addresses section. Your comments should 
address: (a) The necessity of the information collection for the proper 
performance of NCUA, including whether the information will have 
practical utility; (b) the accuracy of our estimate of the burden 
(hours and cost) of the collection of information, including the 
validity of the methodology and assumptions used; (c) ways we could 
enhance the quality, utility, and clarity of the information to be 
collected; and (d) ways we could minimize the burden of the collection 
of the information on the respondents such as through the use of 
automated collection techniques or other forms of information 
technology. It is NCUA's policy to make all comments available to the 
public for review.

II. Data

    Title: Interagency Policy Statement on Funding and Liquidity Risk 
Management.
    OMB Number: 3133-0180.
    Form Number: None.
    Type of Review: Reinstatement, without change, of a previously 
approved collection.
    Description: The agencies have identified two sections of the 
policy statement that fall under the definition of an information 
collection. Section 14 states that institutions should consider 
liquidity costs, benefits, and risks in strategic planning and 
budgeting processes. Section 20 requires that liquidity risk reports 
provide aggregate information with sufficient supporting detail to 
enable management to assess the sensitivity of the institution to 
changes in market conditions, its own financial performance, and other 
important risk factors.
    Respondents: Federally Insured Credit Unions.
    Estimated Number of Respondents/ Record keepers: 6,753 total (4 
large credit unions ($10 to $100 billion in assets), 769 mid-sized 
institutions ($250 million to $10 billion), and 5,980 (less than $250 
million).
    Estimated Burden Hours per Response:
     Section 14: 240 hours per large respondent, 80 hours per 
mid-size respondent, and 20 hours per small respondent.
     Section 20: 2 hours per month.
    Estimated Total Annual Burden Hours: 344,152 hours.
    Estimated Total Annual Cost: Not applicable--usual and customary 
business.

    By the National Credit Union Administration Board on: August 29, 
2013.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2013-21496 Filed 9-4-13; 8:45 am]
BILLING CODE 7535-01-P