[Federal Register Volume 84, Number 100 (Thursday, May 23, 2019)]
[Notices]
[Pages 23790-23792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10795]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Submission for OMB 
Review; Comment Request (OMB No. 3064-0178)

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

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SUMMARY: The FDIC, as part of its obligations under the Paperwork 
Reduction Act of 1995, invites the general public and other Federal 
agencies to take this opportunity to comment on the renewal of the 
existing information collection described below (3064-0178). On 
February 1, 2019, the FDIC requested comment for 60 days on a proposal 
to renew this information collection. No comments were received. The 
FDIC hereby gives notice of its plan to submit to OMB a request to 
approve the renewal of this collection, and again invites comment on 
its renewal.

DATES: Comments must be submitted on or before June 24, 2019.

ADDRESSES: Interested parties are invited to submit written comments to

[[Page 23791]]

the FDIC by any of the following methods:
     https://www.FDIC.gov/regulations/laws/federal.
     Email: [email protected]. Include the name and number of 
the collection in the subject line of the message.
     Mail: Jennifer Jones (202-898-6768), Counsel, MB-3105, 
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, 
DC 20429.
     Hand Delivery: Comments may be hand-delivered to the guard 
station at the rear of the 17th Street Building (located on F Street), 
on business days between 7:00 a.m. and 5:00 p.m.

All comments should refer to the relevant OMB control number. A copy of 
the comments may also be submitted to the OMB desk officer for the 
FDIC: Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Washington, DC 
20503.

FOR FURTHER INFORMATION CONTACT: Jennifer Jones, Counsel, 202-898-6768, 
[email protected], MB-3105, Federal Deposit Insurance Corporation, 550 
17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: On February 1, 2019, the FDIC requested 
comment for 60 days on a proposal to renew this information collection. 
No comments were received. The FDIC hereby gives notice of its plan to 
submit to OMB a request to approve the renewal of this collection, and 
again invites comment on its renewal.
    Proposal to renew the following currently approved collection of 
information:
    1. Title: Market Risk Capital Requirements.
    OMB Number: 3064-0178.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                                                Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Estimated       Estimated                                         Total annual
  Information collection (IC)     Type of burden     Obligation to       number of     frequency of   Estimated time     Frequency of        estimated
          description                                   respond         respondents      responses     per response        response           burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
Identification of trading       Recordkeeping....  Mandatory........               1               1              40  On Occasion.......              40
 positions.
Trading and hedging strategies  Recordkeeping....  Mandatory........               1               1              16  On Occasion.......              16
Active management of covered    Recordkeeping....  Mandatory........               1               1              16  On Occasion.......              16
 positions.
Review of internal models.....  Recordkeeping....  Mandatory........               1               1              16  On Occasion.......              16
Internal audit report.........  Reporting........  Mandatory........               1               1              16  On Occasion.......              16
Backtesting adjustments to      Recordkeeping....  Mandatory........               1               4              16  On Occasion.......              64
 risk-based capital ratio
 calculations.
Demonstrate appropriateness of  Recordkeeping....  Mandatory........               1               1               8  On Occasion.......               8
 proxies.
Retention of subportfolio       Recordkeeping....  Mandatory........               1               1              24  On Occasion.......              24
 information.
Stressed Var-based measure      Reporting........  Mandatory........               1               4              40  On Occasion.......             160
 quantitative requirements.
Modeled specific risk.........  Reporting........  Mandatory........               1               4              88  On Occasion.......             352
Incremental risk model-prior    Reporting........  Mandatory........               1               4             480  On Occasion.......           1,920
 approval.
Comprehensive risk measurement- Reporting........  Mandatory........               1               4             480  On Occasion.......           1,920
 prior approval.
Requirements of stress testing  Recordkeeping....  Mandatory........               1               1              80  On Occasion.......              80
Securitization positions......  Recordkeeping....  Mandatory........               1               4             120  On Occasion.......             480
Quantitative market risk        Third-Party        Mandatory........               1               4               8  On Occasion.......              32
 disclosures.                    Disclosure.
Disclosure policy.............  Recordkeeping....  Mandatory........               1               1              40  On Occasion.......              40
Quantitative disclosures for    Third-Party        Mandatory........               1               4               8  On Occasion.......              32
 each portfolio of covered       Disclosure.
 positons.
Qualitative disclosures for     Third-Party        Mandatory........               1               1              12  On Occasion.......              12
 each portfolio of covered       Disclosure.
 positons.
                                                                     -----------------------------------------------------------------------------------
    Total Hourly Burden.......  .................  .................  ..............  ..............  ..............  ..................           5,228
--------------------------------------------------------------------------------------------------------------------------------------------------------

General Description of Collection

    The FDIC's market risk capital rules (12 CFR part 324, subpart F) 
enhance risk sensitivity, increase transparency through enhanced 
disclosures and include requirements for the public disclosure of 
certain qualitative and quantitative information about the market risk 
of state nonmember banks and state savings associations (covered FDIC-
supervised institutions). The market risk rule applies only if a bank

[[Page 23792]]

holding company or bank has aggregated trading assets and trading 
liabilities equal to 10 percent or more of quarter-end total assets or 
$1 billion or more (covered FDIC-supervised institutions). Currently, 
only one FDIC-regulated entity meets the criteria of the information 
collection requirements that are located at 12 CFR 324.203 through 
324.212. The collection of information is necessary to ensure capital 
adequacy appropriate for the level of market risk.
    Section 324.203(a)(1) requires covered FDIC-supervised institutions 
to have clearly defined policies and procedures for determining which 
trading assets and trading liabilities are trading positions and 
specifies the factors a covered FDIC-supervised institution must take 
into account in drafting those policies and procedures. Section 
324.203(a)(2) requires covered FDIC-supervised institutions to have 
clearly defined trading and hedging strategies for trading positions 
that are approved by senior management and specifies what the 
strategies must articulate. Section 324.203(b)(1) requires covered 
FDIC-supervised institutions to have clearly defined policies and 
procedures for actively managing all covered positions and specifies 
the minimum requirements for those policies and procedures. Sections 
324.203(c)(4) through 324.203(c)(10) require the annual review of 
internal models and specify certain requirements for those models. 
Section 324.203(d) requires the internal audit group of a covered FDIC-
supervised institution to prepare an annual report to the board of 
directors on the effectiveness of controls supporting the market risk 
measurement systems.
    Section 324.204(b) requires covered FDIC-supervised institutions to 
conduct quarterly backtesting. Section 324.205(a)(5) requires 
institutions to demonstrate to the FDIC the appropriateness of proxies 
used to capture risks within value-at-risk models. Section 324.205(c) 
requires institutions to develop, retain, and make available to the 
FDIC value-at-risk and profit and loss information on sub-portfolios 
for two years. Section 324.206(b)(3) requires covered FDIC-supervised 
institutions to have policies and procedures that describe how they 
determine the period of significant financial stress used to calculate 
the institution's stressed value-at-risk models and to obtain prior 
FDIC approval for any material changes to these policies and 
procedures.
    Section 324.207(b)(1) details requirements applicable to a covered 
FDIC-supervised institution when the covered FDIC-supervised 
institution uses internal models to measure the specific risk of 
certain covered positions. Section 324.208 requires covered FDIC-
supervised institutions to obtain prior written FDIC approval for 
including equity positions in its incremental risk modeling. Section 
324.209(a) requires prior FDIC approval for the use of a comprehensive 
risk measure. Section 324.209(c)(2) requires covered FDIC-supervised 
institutions to retain and report the results of supervisory stress 
testing. Section 324.210(f)(2)(i) requires covered FDIC-supervised 
institutions to document an internal analysis of the risk 
characteristics of each securitization position in order to demonstrate 
an understanding of the position. Section 324.212 applies to certain 
covered FDIC-supervised institutions that are not subsidiaries of bank 
holding companies, and requires quarterly quantitative disclosures, 
annual qualitative disclosures, and a formal disclosure policy approved 
by the board of directors that addresses the approach for determining 
the market risk disclosures it makes.
    The annual burden for this information collection is estimated to 
be 5,228 hours. This represents an increase of 1,300 hours from the 
current burden estimate of 3,928 hours. This increase is not due to any 
new requirements imposed by the FDIC. Rather, it is due to FDIC's 
reassessment of the number of respondents as well as the frequency of 
responses per respondent per year.

Request for Comment

    Comments are invited on: (a) Whether the collection of information 
is necessary for the proper performance of the FDIC's functions, 
including whether the information has practical utility; (b) the 
accuracy of the estimates of the burden of the information collection, 
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 
information on respondents, including through the use of automated 
collection techniques or other forms of information technology. All 
comments will become a matter of public record.

    Dated at Washington, DC, on May 20, 2019.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2019-10795 Filed 5-22-19; 8:45 am]
BILLING CODE 6714-01-P