[Federal Register Volume 83, Number 219 (Tuesday, November 13, 2018)]
[Notices]
[Pages 56399-56400]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24616]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Comment Request; Leveraged Lending

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 the general public and other federal 
agencies to take this opportunity to 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 respondents are 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 the renewal of its 
information collection titled ``Leveraged Lending.''

DATES: Comments must be received by January 14, 2019.

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: Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency, Attention: 1557-0315, 400 
7th Street SW, Suite 3E-218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0315'' in your comment. In general, the OCC will publish 
comments on www.reginfo.gov without change, including any business or 
personal information that you provide, 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.
    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 \1\ by any of the following methods:
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    \1\ Following the close of the 60-Day comment period for this 
notice, the OCC will publish a notice for 30 days of comment for 
this collection.
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     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu, 
select ``Department of Treasury'' and then click ``submit.'' This 
information collection can be located by searching by OMB control 
number ``1557-0315'' or ``Leveraged Lending.'' 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.
     Viewing Comments Personally: You may personally inspect 
comments at the OCC, 400 7th Street SW, Washington, DC. For security 
reasons, the OCC requires that visitors make an appointment to inspect 
comments. You may do so by calling (202) 649-6700 or, for persons who 
are deaf or hearing impaired, TTY, (202) 649-5597. Upon arrival, 
visitors will be required to

[[Page 56400]]

present valid government-issued photo identification and submit to 
security screening in order to inspect comments.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer, 
(202) 649-5490 or, for persons who are deaf or hearing impaired, TTY, 
(202) 649-5597, Chief Counsel's Office, Office of the Comptroller of 
the Currency, 400 7th Street SW, Washington, DC 20219.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), federal 
agencies must obtain approval from OMB for each collection of 
information they conduct or sponsor. ``Collection of information'' is 
defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include Agency 
recommendations, 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 (44 U.S.C. 3506(c)(2)(A)) 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 proposed collection of 
information set forth in this document.
    Title: Leveraged Lending.
    OMB Control No.: 1557-0315.
    Description: On March 22, 2013, the agencies \2\ issued guidance to 
the financial institutions they supervise \3\ on how to evaluate and 
monitor credit risks in leveraged loans, understand the effect of 
changes in borrowers' enterprise values on credit portfolio quality, 
and assess the sensitivity of future credit losses to these changes in 
enterprise values.\4\ In regard to the underwriting of such credits, 
the guidance provides information for financial institutions to 
consider in assessing whether borrowers have the ability to repay 
credits when due and whether borrowers have sustainable capital 
structures, including bank borrowings and other debt, to support their 
continued operations through economic cycles. The guidance also 
provides information to financial institutions on the risks and 
potential impact of stressful events and circumstances on a borrower's 
financial condition.
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    \2\ OCC, Board of Governors of the Federal Reserve System, and 
Federal Deposit Insurance Corporation.
    \3\ For the OCC, the term ``financial institution'' or 
``institution'' includes national banks, federal savings 
associations, and federal branches and agencies supervised by the 
OCC.
    \4\ 78 FR 17766 (March 22, 2013).
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    The final guidance recommends that financial institutions consider 
developing: (i) Underwriting policies for leveraged lending, including 
stress-testing procedures for leveraged credits; (ii) risk management 
policies, including stress-testing procedures for pipeline exposures; 
and, (iii) policies and procedures for incorporating the results of 
leveraged credit and pipeline stress tests into the firm's overall 
stress-testing framework. While not requirements, these recommended 
policies qualify as ``collections of information'' as defined in the 
PRA.
    Respondents are financial institutions with leveraged lending 
activities as defined in the guidance that may develop policies 
recommended in the guidance.
    Title: Guidance on Leveraged Lending.
    OMB Control No.: 1557-0315.
    Frequency of Response: Annual.
    Affected Public: Financial institutions with leveraged lending.
    Burden Estimates:
    Estimated number of respondents: 29.
    Estimated total annual burden: 39,162 hours to build; 49,462 hours 
for ongoing use.
    Total estimated annual burden: 88,624 hours.
    Comments submitted in response to this notice will be summarized, 
included in the request for OMB approval, and become a matter of public 
record. Comments are invited on:
    (a) Whether the information collections are necessary for the 
proper performance of the OCC's functions, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's 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;
    (d) Ways to minimize the burden of information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    (e) Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: November 6, 2018.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2018-24616 Filed 11-9-18; 8:45 am]
 BILLING CODE 4810-33-P