[Federal Register Volume 79, Number 214 (Wednesday, November 5, 2014)]
[Notices]
[Page 65711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26220]



[[Page 65711]]

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NATIONAL CREDIT UNION ADMINISTRATION


Agency Information Collection Activities: Request for comments 
for Extension of a Currently Approved Collection; Request for Comment

AGENCY: National Credit Union Administration (NCUA).

ACTION: Notice of request for comment.

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SUMMARY: NCUA intends to submit the following information collection to 
the Office of Management and Budget (OMB) for renewal under the 
Paperwork Reduction Act of 1995 (Public Law 104-13, 44 U.S.C. Chapter 
35). This information collection notice is published to obtain comments 
from the public. Federally insured credit unions with more than $50 
million in assets are required to have a written interest rate risk 
(IRR) policy and an effective IRR management program as a condition for 
insurance of accounts. The information collection is currently 
authorized under OMB Control Number 3133-0184, which expires on 
February 28, 2015. The information collection allows NCUA to determine 
whether a credit union's financial condition and policies regarding 
interest rate risk are both safe and sound and meet the requirements 
for insurance of accounts.

DATES: Comments will be accepted until January 5, 2015.

ADDRESSES: Interested persons are invited to submit written comments on 
the information collection to Amanda Wallace, National Credit Union 
Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428, Fax 
No. 703-837-2861, Email: [email protected]

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 Amanda Wallace at the National Credit 
Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428, or 
at [email protected].

SUPPLEMENTARY INFORMATION:

I. Abstract and Request for Comments

    Section 741.3(b)(5) of NCUA Rules and Regulations (12 CFR 
741.3(b)(5)) requires federally insured credit unions with more than 
$50 million in assets to have a written IRR policy and an effective IRR 
management program as a condition for insurance. In an appendix, the 
rule also provides guidance on how to establish an IRR policy and an 
effective program.
    Guidance specifies that policies should cover the following areas:
     Identify committees, persons or other parties responsible 
for review of the credit union's IRR exposure;
     Direct appropriate actions to ensure management takes 
steps to manage IRR so that IRR exposures are identified, measured, 
monitored, and controlled;
     State the frequency with which management will report on 
measurement results to the board to ensure routine review of 
information that is timely (e.g., current and at least quarterly) and 
in sufficient detail to assess the credit union's IRR profile;
     Set risk limits for IRR exposures based on selected 
measures (e.g., limits for changes in repricing or duration gaps, 
income simulation, asset valuation, or net economic value);
     Choose tests, such as interest rate shocks, that the 
credit union will perform using the selected measures;
     Provide for periodic review of material changes in IRR 
exposures and compliance with board approved policy and risk limits;
     Provide for assessment of the IRR impact of any new 
business activities prior to implementation (e.g., evaluate the IRR 
profile of introducing a new product or service); and
     Provide for annual evaluation of policy to determine 
whether it is still commensurate with the size, complexity, and risk 
profile of the credit union.
    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 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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the Paperwork 
Reduction Act unless it displays a currently valid OMB control number.

II. Data

    Title: Requirement for Insurance--Interest Rate Risk Policy, 12 CFR 
741.3(b)(5).
    OMB Number: 3133--0184.
    Form Number: None.
    Type of Review: Extension with change of a currently approved 
collection.
    Description: NCUA uses the information to evaluate credit unions' 
compliance with the rule and to determine credit unions' risk 
tolerances and consistency with their business strategies.
    Respondents: Federally insured credit unions with assets of more 
than $50 million.
    Estimated No. of Respondents/Recordkeepers: 225.
    Estimated No. of Responses: 225.
    Frequency of Response: Once, then annual review.
    Estimated Time per Response: 16 hours.
    Estimated Total Annual Burden: 3,600 hours.

    By the National Credit Union Administration Board on October 30, 
2014.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2014-26220 Filed 11-4-14; 8:45 am]
BILLING CODE 7535-01-P