[Federal Register Volume 85, Number 52 (Tuesday, March 17, 2020)]
[Notices]
[Pages 15172-15175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05455]



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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0057; -0112; -0127; -0140; -0175; -0198]


Agency Information Collection Activities: Proposed Collection 
Renewal; Comment Request

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 (PRA), invites the general public and other 
Federal agencies to take this opportunity to comment on the renewal of 
the existing information collections described below (OMB Control No. 
3064-0057; -0112; -0127; -0140; -0175; -0198).

DATES: Comments must be submitted on or before May 18, 2020.

ADDRESSES: Interested parties are invited to submit written comments to 
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: Manny Cabeza (202-898-3767), Regulatory Counsel, MB-
3128, 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: Manny Cabeza, Regulatory Counsel, 202-
898-3767, [email protected], MB-3128, Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION:
    Proposal to renew the following currently approved collections of 
information:
    1. Title: Quarterly Certified Statement Invoice for Deposit 
Insurance Assessment.
    OMB Number: 3064-0057.
    Affected Public: FDIC-insured depository institutions.
    Burden Estimate:

                                                                Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                 Estimated    Estimated
                                                                                           Estimated    Estimated frequency of    time per      annual
  Information collection description        Type of burden        Obligation to respond    number of          responses           response      burden
                                                                                          respondents                            (minutes)     (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Certified Statement for Quarterly      Reporting...............  Mandatory..............        5,258  Quarterly..............           20        6,941
 Deposit Insurance Assessment (FDIC
 Form 6420/07).
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Total Estimated Annual Burden: 6,941 hours.
    General Description of Collection: The FDIC collects deposit 
insurance assessments on a quarterly basis. Each quarterly assessment 
is based on an insured depository institution's quarterly report of 
condition for the prior calendar quarter. The FDIC collects the 
quarterly assessment payments by means of direct debits through the 
Automated Clearing House network. The information collection consists 
of the reporting requirement associated with certifying the review by 
officials of the insured institutions to confirm that the assessment 
data are accurate and, in cases of inaccuracy, submission of corrected 
data.
    2. Title: Real Estate Lending Standards.
    OMB Number: 3064-0112.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                                                Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                 Estimated    Estimated
                                                                                           Estimated    Estimated frequency of    time per      annual
  Information collection description        Type of burden        Obligation to respond    number of          responses           response      burden
                                                                                          respondents                            (minutes)     (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Real Estate Lending Standards........  Recordkeeping...........  Mandatory..............        3,344  On Occasion............           20        1,115
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    Total Estimated Annual Burden: 1,115 hours.
    General Description of Collection: Section 1828(o) of the Federal 
Deposit Insurance Act requires each federal banking agency to adopt 
uniform regulations prescribing real estate lending standards. Part 365 
of the FDIC Rules and Regulations, which implements section 1828(o), 
requires institutions to have real estate lending policies that include 
(a) limits and standards consistent with safe and sound banking 
practices; (b) prudent underwriting standards, including loan-to-value 
ratio (LTV) limits that are clear and measurable; (c) loan 
administration policies; (d) documentation, approval and reporting 
requirements; and (e) a requirement for annual review and approval by 
the board of directors. The rule also establishes supervisory LTV 
limits and other underwriting considerations in the form of guidelines. 
Since banks generally have written policies on real estate lending, the 
additional burden imposed by this regulation is limited to 
modifications to existing policies necessary to bring those policies 
into compliance with the regulation and the development of a system to 
report loans in excess of the guidelines to the board of directors.
    3. Title: Fast-Track Generic Clearance for the Collection of 
Qualitative Feedback.
    OMB Number: 3064-0127.
    Affected Public: General public including FDIC insured depository 
institutions.
    Burden Estimate:

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                                                                Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Estimated    Estimated    Estimated
                                                                                                       Estimated    frequency     time per      annual
    Information collection description            Type of  burden           Obligation to  respond     number of        of        response      burden
                                                                                                      respondents   responses    (minutes)     (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Occasional Qualitative Surveys...........  Reporting...................  Voluntary..................          850           15           60       12,750
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    Total Estimated Annual Burden........  ............................  ...........................  ...........  ...........  ...........       12,750
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    General Description of Collection: The FDIC is requesting renewal 
of this approved collection to use occasional qualitative surveys to 
gather information from the public. While the subject and nature of the 
surveys to be deployed under this information collection are yet to be 
determined, based on prior experience it is expected that the number of 
respondents will range from a few to, at times several thousands, but, 
in general, these surveys are expected to involve an average of 850 
respondents. Likewise, the time to respond to the surveys can range 
from a few minutes to several hours. It is expected that the average 
time to respond to a survey is approximately one hour. These surveys 
are completely voluntary in nature. FDIC estimates that approximately 
15 such surveys will be conducted in any given year.
    The purpose of the surveys is, in general terms, to obtain 
anecdotal information about regulatory burden, problems or successes in 
the bank supervisory process (including both safety-and-soundness and 
consumer-related exams), the perceived need for regulatory or statutory 
change, and similar concerns. The information in these surveys is 
anecdotal in nature, that is, samples are not necessarily random, the 
results are not necessarily representative of a larger class of 
potential respondents, and the goal is not to produce a statistically 
valid and reliable database. Rather, the surveys are expected to yield 
anecdotal information about the particular experiences and opinions of 
members of the public, primarily staff at respondent banks or bank 
customers. The information is used to improve the way FDIC relates to 
its clients, to develop agendas for regulatory or statutory change, and 
in some cases simply to learn how particular policies or programs are 
working, or are perceived in particular cases.
    4. Title: Insurance Sales Consumer Protection.
    OMB Number: 3064-0140.
    Affected Public: Insured State nonmember banks and savings 
associations that sell insurance products; persons who sell insurance 
products in or on behalf of insured State nonmember banks and savings 
associations.
    Type of Burden: Third-party disclosure.
    Obligation to Respond: Mandatory.
    Burden Estimate:

                                                                Summary of annual burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                 Estimated    Estimated
                                                                                           Estimated    Estimated frequency of    time per      annual
  Information collection description        Type of  burden       Obligation to respond    number of           response           response      burden
                                                                                          respondents                             (hours)      (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Insurance Sales Consumer Protections.  Third Party Disclosure..  Mandatory..............        1,774  On Occasion............            5        8,870
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    Total Estimated Annual Burden....  ........................  .......................  ...........  .......................  ...........        8,870
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    General Description of Collection: Respondents must prepare and 
provide certain disclosures to consumers (e.g., that insurance products 
and annuities are not FDIC-insured) and obtain consumer 
acknowledgments, at two different times: (1) Before the completion of 
the initial sale of an insurance product or annuity to a consumer; and 
(2) at the time of application for the extension of credit (if 
insurance products or annuities are sold, solicited, advertised, or 
offered in connection with an extension of credit).
    5. Title: Interagency Guidance on Sound Incentive Compensation 
Practices.
    OMB Number: 3064-0175.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Obligation to Respond: Voluntary.
    Burden Estimate:

                                                                Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Total
                                                                          Estimated    Estimated    Estimated                                   annual
                                                  Type of burden          number of    number of     time per      Frequency of response      estimated
                                                                         respondents   responses     response                                   burden
                                                                                                     (hours)                                   (hours)
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Document policies and procedures           Recordkeeping...............            1            1           40  Annual.....................           40
 (Implementation).
Annual maintenance of policies and         Recordkeeping...............        2,164            1            2  Annual.....................        4,328
 procedures (Ongoing).
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    Total Hourly Burden..................  ............................  ...........  ...........  ...........  ...........................        4,368
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    Methodology and Assumptions: Previously, each institution 
supervised by the FDIC was estimated to spend 40 hours per year 
maintaining a record of its policies and procedures regarding incentive 
based compensation.

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However, while an institution without any such policies and procedures 
may take 40 hours to completely document them for the first time, after 
performing the initial documentation, unless an institution needs to 
revise its policies and procedures, there should be no further 
recordkeeping burden. FDIC is using one respondent as a placeholder to 
represent any institution that adopt incentive based compensation for 
the first time. The estimate of 40 hours remains unchanged from the 
2017 estimate. Supervisory experience shows that approximately 65% of 
large FDIC-supervised institutions revise their incentive-based 
compensation policies and procedures annually. FDIC estimates it takes 
approximately 2 hours for an institution to update its record of its 
policies and procedures related to incentive compensation. While a 
majority of the institutions supervised by the FDIC are small, and may 
not use incentive based compensation, or may use incentive based 
compensation arrangements less complex than those used at large 
institutions, FDIC assumes that each year approximately 65 percent of 
FDIC-supervised institutions will spend approximately 2 hours each 
revising their records of their incentive based compensation policies 
and procedures. As of December 31, 2019, the FDIC supervised 3,344 
institutions. FDIC assumes that 2,164 (65%) of those institutions will 
revise their records of incentive based compensation policies and 
procedures each year.
    General Description of Collection: This Guidance helps promote that 
incentive compensation policies at insured state non-member banks do 
not encourage excessive risk-taking and are consistent with the safety 
and soundness of the organization. Under this Guidance, banks are 
encouraged to: (i) Have policies and procedures that identify and 
describe the role(s) of the personnel and units authorized to be 
involved in incentive compensation arrangements, identify the source of 
significant risk-related inputs, establish appropriate controls 
governing these inputs to help ensure their integrity, and identify the 
individual(s) and unit(s) whose approval is necessary for the 
establishment or modification of incentive compensation arrangements; 
(ii) create and maintain sufficient documentation to permit an audit of 
the organization's processes for incentive compensation arrangements; 
(iii) have any material exceptions or adjustments to the incentive 
compensation arrangements established for senior executives approved 
and documented by its board of directors; and (iv) have its board of 
directors receive and review, on an annual or more frequent basis, an 
assessment by management of the effectiveness of the design and 
operation of the organization's incentive compensation system in 
providing risk-taking incentives that are consistent with the 
organization's safety and soundness.
    6. Title: Generic Information Collection for Qualitative Research.
    OMB Number: 3064-0198.
    Affected Public: General public including FDIC insured depository 
institutions.
    Burden Estimate:

                                                                Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Estimated    Estimated    Estimated
                                                                                                       Estimated    frequency     time per      annual
    Information collection description            Type of  burden           Obligation to respond      number of        of        response      burden
                                                                                                      respondents   responses    (minutes)     (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Occasional Qualitative Surveys...........  Reporting...................  Voluntary..................          500           20           60       10,000
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    Total Estimated Annual Burden........  ............................  ...........................  ...........  ...........  ...........       10,000
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    General Description of Collection: The FDIC is requesting renewal 
of this approved collection to use occasional qualitative surveys to 
gather information from the public to inform qualitative research. 
While the subject and nature of the surveys to be deployed under this 
information collection are yet to be determined, based on prior 
experience it is expected that the number or respondents will range 
from a few to, at times, several thousands, but, in general, these 
surveys are expected to involve an average of 500 respondents. 
Likewise, the time to respond to the surveys can range from a few 
minutes to several hours, but, it is expected that the average time to 
respond to a survey is approximately one hour. These surveys are 
completely voluntary in nature. FDIC estimates that approximately 20 
such surveys will be conducted in any given year.
    Currently, the FDIC has a variety of methods to collect 
quantitative information from consumers and institutions (e.g., Call 
Reports, FDIC National Survey of Unbanked and Underbanked Households, 
etc.). Qualitative data would provide complementary information on 
insights, opinions, and perceptions that will inform how the FDIC 
approaches its mission to safeguard financial stability of the banking 
system and promote consumer protection and economic inclusion. This 
clearance would allow the FDIC to engage with consumers and other 
relevant stakeholders through qualitative research methods such as 
focus groups, in-depth interviews, cognitive testing, and/or 
qualitative virtual methods.
    The purpose of the surveys is, in general terms, to obtain 
anecdotal information about regulatory burden, problems or successes in 
the bank supervisory process (including both safety-and-soundness and 
consumer-related exams), the perceived need for regulatory or statutory 
change, and similar concerns. The information in these surveys is 
anecdotal in nature, that is, samples are not necessarily random, the 
results are not necessarily representative of a larger class of 
potential respondents, and the goal is not to produce a statistically 
valid and reliable database. Rather, the surveys are expected to yield 
anecdotal information about the particular experiences and opinions of 
members of the public, primarily staff at respondent banks or bank 
customers. The collection is non-controversial and does not raise 
issues of concern to other Federal agencies; with the exception of 
information needed to provide remuneration for participants of focus 
groups and cognitive laboratory studies, personally identifiable 
information (PII) is collected only to the extent necessary and is not 
retained.
    Participation in this information collection will be voluntary and 
conducted in-person, by phone, or using other methods, such as virtual 
technology. The types of collections that this generic clearance covers 
include, but are not limited to: Small discussion groups; focus groups 
of consumers, financial industry professionals, or other stakeholders; 
cognitive laboratory studies, such as those used to refine questions or 
assess usability of a website; qualitative customer satisfaction 
surveys (e.g., post-

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transaction surveys; opt-out web surveys); and in-person observation 
testing (e.g., website or software usability tests).

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.

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on March 12, 2020.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2020-05455 Filed 3-16-20; 8:45 am]
 BILLING CODE 6714-01-P