[Federal Register Volume 85, Number 101 (Tuesday, May 26, 2020)]
[Notices]
[Pages 31500-31503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11223]


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FEDERAL DEPOSIT INSURANCE CORPORATION

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


Agency Information Collection Activities: Submission for OMB 
Review; Comment Request

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Agency information collection activities: submission for OMB 
Review; comment request.

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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 collections described below. On March 17, 2020, 
the FDIC requested comment for 60 days on a proposal to renew these 
information collections. No comments were received. The FDIC hereby 
gives notice of its plan to submit to OMB a request to approve the 
renewal of these information collections, and again invites comment on 
their renewal.

DATES: Comments must be submitted on or before June 25, 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.
    Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to www.reginfo.gov/public/do/PRAMain. Find this particular information 
collection by selecting ``Currently under 30-day Review--Open for 
Public Comments'' or by using the search function.

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
     Information collection                                                          Estimated     Estimated  frequency      time per        Estimated
           description                Type of burden      Obligation  to respond     number of         of  responses         response     annual  burden
                                                                                    respondents                              (minutes)        (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Certified Statement for           Reporting.............  Mandatory.............           5,258  Quarterly.............              20           7,011
 Quarterly Deposit Insurance
 Assessment (FDIC Form 6420/07).
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Total Estimated Annual Burden: 7,011 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

[[Page 31501]]

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.
    There is no change in the substance or methodology of this 
information collection. The change in burden is due solely to the 
decrease in the estimated number of respondents by 823 from the 
estimated 6,081 annual respondents in the currently-approved 
information collection to the current estimate of 5,258. The decrease 
in estimated respondents is the result of the drop in the total number 
of insured depository institutions.
    2. Title: Real Estate Lending Standards.
    OMB Number: 3064-0112.

                                                                Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                             Estimated
     Information collection                                                          Estimated     Estimated  frequency      time per       Estimated A
           description                Type of  burden     Obligation  to respond     number of         of  responses         response     annual  burden
                                                                                    respondents                               (Hours)         (Hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Real Estate Lending Standards...  Recordkeeping.........  Mandatory.............           3,344  On Occasion...........              20          66,880
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Total Estimated Annual Burden: 66,880 hours.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:
    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.
    There is no change in the substance or methodology of this 
information collection. The change in burden is due solely to the 
decrease in the estimated number of respondents by 534 from the 
estimated 3,878 annual respondents in the currently-approved 
information collection to the current estimate of 3,344. The decrease 
in estimated respondents is the result of the drop in the total number 
of FDIC-supervised institutions.
    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:

                                                                Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             Estimated       Estimated    Estimated time     Estimated
 Information collection description        Type of burden         Obligation to respond      number of     frequency of    per response    annual burden
                                                                                            respondents      responses        (hours)         (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Occasional Qualitative Surveys.....  Reporting................  Voluntary...............             850              20               1          17,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Total Estimated Annual Burden: 17,000 hours.
    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 
20 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.
    There is no change in the substance or methodology of this 
information collection. The change in burden is due solely to an 
increase in the estimated number of surveys to be deployed annually 
under this information collection. The increase in frequency from 15 to 
20 surveys per year, resulted in an increase of 4,250 hours in total 
estimated annual burden from 12,750 hours to 17,000 hours.

[[Page 31502]]

    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 time     Estimated
     Information collection           Type of burden       Obligation to respond     number of    Estimated frequency of   per response    annual burden
           description                                                              respondents          responses            (hours)         (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Insurance Sales Consumer          Third Party Disclosure  Mandatory.............           2,146  On Occasion...........               5          10,730
 Protections.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Total Estimated Annual Burden: 10,730.
    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).
    There is no change in the substance or methodology of this 
information collection. The change in burden is due solely to an 
increase in the estimated number of respondents which is derived from 
Call Report data indicating the number of by institutions offering 
insurance products. The number of respondents increased by 126 from 
2,020 to 2,146.
    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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Estimated       Estimated    Estimated time                             Total annual
                                          Type of  burden          number of       number of     per response     Frequency of response      estimated
                                                                  respondents      responses        (hours)                               burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
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).
                                                               -----------------------------------------------------------------------------------------
    Total Hourly Burden............  .........................  ..............  ..............  ..............  ........................           4,368
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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. 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.

[[Page 31503]]

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 May 20, 2020.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2020-11223 Filed 5-22-20; 8:45 am]
BILLING CODE 6714-01-P