[Federal Register Volume 84, Number 202 (Friday, October 18, 2019)]
[Notices]
[Pages 55959-55960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22733]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is adopting a proposal to extend for three years, without revision, the 
Recordkeeping Provisions Associated with Guidance on Leveraged Lending 
(FR 4203; OMB No. 7100-0354).

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829.
    Office of Management and Budget (OMB) Desk Officer--Shagufta 
Ahmed--Office of Information and Regulatory Affairs, Office of 
Management and

[[Page 55960]]

Budget, New Executive Office Building, Room 10235, 725 17th Street NW, 
Washington, DC 20503, or by fax to (202) 395-6974.
    A copy of the PRA OMB submission, including the reporting form and 
instructions, supporting statement, and other documentation will be 
placed into OMB's public docket files. These documents also are 
available on the Federal Reserve Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears above.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the Paperwork Reduction Act (PRA) to approve and assign 
OMB control numbers to collections of information conducted or 
sponsored by the Board. Board-approved collections of information are 
incorporated into the official OMB inventory of currently approved 
collections of information. Copies of the PRA Submission, supporting 
statements, and approved collection of information instrument(s) are 
placed into OMB's public docket files.

Final Approval Under OMB Delegated Authority of the Extension for Three 
Years, Without Revision, of the Following Information Collection

    Report title: Recordkeeping Provisions Associated with Guidance on 
Leveraged Lending.
    Agency form number: FR 4203.
    OMB control number: 7100-0354.
    Frequency: On occasion.
    Respondents: All financial institutions substantively engaged in 
leveraged lending activities supervised by the Board.
    Estimated number of respondents: 40.
    Estimated average hours per response: 755.
    Estimated annual burden hours: 30,200 hours.
    General description of report: The Interagency Guidance on 
Leveraged Lending (Guidance) \1\ outlines high-level principles related 
to safe-and-sound leveraged lending activities. The Guidance includes a 
number of voluntary recordkeeping provisions that apply to financial 
institutions for which the Board is the primary federal supervisor, 
including bank holding companies, savings and loan holding companies, 
state member banks, and state-chartered branches and agencies of 
foreign banks, that engage in leveraged lending activities. There are 
no reporting forms associated with this information collection (the FR 
4203 designation is for internal purposes only).
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    \1\ ``Interagency Guidance on Leveraged Lending,'' March 21, 
2013, available at https://www.federalreserve.gov/supervisionreg/srletters/sr1303a1.pdf. The Guidance was published jointly by the 
Board, the Office of the Comptroller of the Currency, and the 
Federal Deposit Insurance Corporation.
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    The Guidance includes several provisions that suggest financial 
institutions engage in recordkeeping. The guidance states that 
institutions should maintain:
     Well-defined underwriting standards that, among other 
things, define acceptable leverage levels and describe amortization 
expectations for senior and subordinate debt;
     sound management information systems that enable 
management to identify, aggregate, and monitor leveraged exposures and 
comply with policy across all business lines;
     strong pipeline management policies and procedures that, 
among other things, provide for real-time information on exposures and 
limits, and exceptions to the timing of expected distributions and 
approved hold levels; and
     guidelines for conducting periodic portfolio and pipeline 
stress tests to quantify the potential impact of economic and market 
conditions on the institution's asset quality, earnings, liquidity, and 
capital.
    Many community banks are not subject to the Guidance because they 
do not engage in leveraged lending. The limited number of community and 
smaller institutions that are involved in leveraged lending activities 
may discuss with the Federal Reserve System how to implement these 
collections of information in a cost-effective manner that is 
appropriate for the complexity of their exposures and activities.
    Legal authorization and confidentiality: The recordkeeping 
provisions of the Guidance are authorized pursuant to sections 9(6), 
25, and 25A of the Federal Reserve Act (12 U.S.C. 324, 602, and 625) 
(for state member banks, agreement corporations, and Edge corporations, 
respectively); section 5(c) of the Bank Holding Company Act (12 U.S.C. 
1844(c)) (for bank holding companies); section 10(b)(3) of the Home 
Owners' Loan Act (12 U.S.C. 1467a(b)(3)) (for savings and loan holding 
companies); and section 7(c)(2) of the International Banking Act (12 
U.S.C. 3105(c)(2)) (for state-licensed branches and agencies of foreign 
banks, other than insured branches).
    The information collections under the FR 4203 are voluntary. 
Because these records would be maintained at each banking organization, 
the Freedom of Information Act (FOIA) would only be implicated if the 
Board obtained such records as part of the examination or supervision 
of a banking organization. In the event the records are obtained by the 
Board as part of an examination or supervision of a financial 
institution, this information may be considered confidential pursuant 
to exemption 8 of the FOIA, which protects information contained in 
``examination, operating, or condition reports'' obtained in the bank 
supervisory process (5 U.S.C. 552(b)(8)). In addition, the information 
may also be kept confidential under exemption 4 of the FOIA, which 
protects ``commercial or financial information obtained from a person 
[that is] privileged or confidential'' (5 U.S.C. 552(b)(4)).
    Current actions: On July 3, 2019, the Board published a notice in 
the Federal Register (84 FR 31866) requesting public comment for 60 
days on the extension, without revision, of the Recordkeeping 
Provisions Associated with Guidance on Leveraged Lending. The comment 
period for this notice expired on September 3, 2019. The Board did not 
receive any comments.

    Board of Governors of the Federal Reserve System, October 11, 
2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-22733 Filed 10-17-19; 8:45 am]
 BILLING CODE 6210-01-P