[Federal Register Volume 87, Number 23 (Thursday, February 3, 2022)]
[Notices]
[Pages 6238-6239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02301]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Requirements; Information
Collection Renewal; Submission for OMB Review; OCC Guidelines
Establishing Standards for Recovery Planning by Certain Large Insured
National Banks, Large Insured Federal Savings Associations, and Large
Insured Federal Branches
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 the respondent is 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, ``OCC Guidelines Establishing Standards for Recovery Planning
by Certain Large Insured National Banks, Insured Federal Savings
Associations, and Insured Federal Branches.'' The OCC also is giving
notice that it has sent the collection to OMB for review.
DATES: You should submit written comments by March 7, 2022.
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: Chief Counsel's Office, Attention: Comment
Processing, 1557-0333, Office of the Comptroller of the Currency, 400
7th Street SW, Suite 3E-218, Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``1557-0333'' in your comment. In general, the OCC will publish
comments on www.reginfo.gov without change, including any business or
personal information provided, 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.
Written comments and recommendations for the proposed information
collection should also 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. On October
29, 2021, the OCC published a 60-day notice for this information
collection, 86 FR 60105. You may review comments and other related
materials that pertain to this information collection following the
close of the 30-day comment period for this notice by the method set
forth in the next bullet.
Viewing Comments Electronically: Go to www.reginfo.gov.
Hover over the ``Information Collection Review'' tab and click on
``Information Collection Review'' drop-down menu. From the ``Currently
under Review'' drop-down menu, select ``Department of Treasury'' and
then click ``submit.'' This information collection can be located by
searching by OMB control number ``1557-0333'' or ``OCC Guidelines
Establishing Standards for Recovery Planning by Certain Large Insured
National Banks, Insured Federal Savings Associations, and Insured
Federal Branches.'' 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.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance
Officer, (202) 649-5490, Chief Counsel's Office, Office of the
Comptroller of the Currency, 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
agencies must obtain approval from the Office of Management and Budget
(OMB) for each collection of information that 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 requests or requirements that members of
the public submit reports, keep records, or provide information to a
third party. The OCC asks that OMB extend its approval of this
collection.
Title: OCC Guidelines Establishing Standards for Recovery Planning
by Certain Large Insured National Banks, Insured Federal Savings
Associations, and Insured Federal Branches.
OMB Control No.: 1557-0333.
Abstract: In 2015, the OCC issued guidelines applicable to each
insured national bank, insured Federal savings association, and insured
Federal branch of a foreign bank (together, banks) with average total
consolidated assets equal to or greater than $50 billion (covered
banks). The guidelines stated that each covered bank should develop and
maintain a recovery plan that is appropriate for its individual size,
risk profile, activities, and complexity, including the complexity of
its organizational and legal entity structure, in order to be able to
respond quickly to and recover from the financial effects of severe
stress. The guidelines established standards for this recovery
planning.
The OCC issued a final rule in 2018 that increased the average
total consolidated assets threshold for applying the recovery planning
guidelines to a bank from $50 billion to $250 billion and decreased
from 18 months to 12 months the time within which a bank should comply
with the recovery planning guidelines after the
[[Page 6239]]
bank first becomes subject to the guidelines.\1\
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\1\ 83 FR 66604 (December 27, 2018).
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Overview of covered bank. A recovery plan should describe the
covered bank's overall organizational and legal entity structure,
including its material entities, critical operations, core business
lines, and core management information systems. The plan should
describe interconnections and interdependencies (1) across business
lines within the covered bank; (2) with affiliates in a bank holding
company structure; (3) between a covered bank and its foreign
subsidiaries and (4) with critical third parties.
Triggers. A covered bank's recovery plan should identify triggers
that appropriately reflect the bank's particular vulnerabilities.
Options for recovery. A recovery plan should identify a wide range
of credible options that a covered bank could undertake to restore
financial strength and viability, thereby allowing the bank to continue
to operate as a going concern and to avoid liquidation or resolution. A
recovery plan should explain how the covered bank would carry out each
option and describe the timing required for carrying out each option.
The recovery plan should specifically identify the recovery options
that require approval.
Impact assessments. For each recovery option, a covered bank should
assess and describe how the option would affect the covered bank. This
impact assessment and description should specify the procedures the
covered bank would use to maintain the financial strength and viability
of its material entities, critical operations, and core business lines
for each recovery option. For each option, the recovery plan's impact
assessment should address the following: (1) The effect on the covered
bank's capital, liquidity, funding, and profitability; (2) the effect
on the covered bank's material entities, critical operations, and core
business lines, including reputational impact; and (3) any legal or
market impediment or regulatory requirement that must be addressed or
satisfied in order to implement the option.
Escalation procedures. A recovery plan should clearly outline the
process for escalating decision-making to the covered bank's senior
management, board of directors (board), or appropriate board committee
in response to the breach of any trigger. The recovery plan should also
identify the departments and persons responsible for executing the
decisions of senior management, the board, or an appropriate board
committee.
Management reports. A recovery plan should require reports that
provide senior management, the board, or an appropriate board committee
with sufficient data and information to make timely decisions regarding
the appropriate actions necessary to respond to the breach of a
trigger.
Communication procedures. A recovery plan should provide that the
covered bank will notify the OCC of any significant breach of a trigger
and any action taken or to be taken in response to such breach and
should explain the process for deciding when a breach of a trigger is
significant. A recovery plan also should address when and how the
covered bank will notify persons within the organization and other
external parties of its action under the recovery plan. The recovery
plan should specifically identify how the covered bank will obtain
required approvals.
Other information. A recovery plan should include any other
information that the OCC communicates in writing directly to the
covered bank regarding the covered bank's recovery plan.
A covered bank should (1) integrate its recovery plan into its risk
governance functions and (2) align its recovery plan with its other
plans, such as its strategic, operational (including business
continuity), contingency, capital (including stress testing),
liquidity, and resolution planning. The covered bank's recovery plan
also should be specific to that covered bank and coordinated with any
recovery and resolution planning efforts by the bank's holding company.
A covered bank's recovery plan should address the responsibilities
of the bank's management and board with respect to the plan.
Specifically, management should review the recovery plan at least
annually and in response to a material event. It should revise the plan
as necessary to reflect material changes in the covered bank's size,
risk profile, activities, and complexity, as well as changes in
external threats. This review should evaluate the organizational
structure and its effectiveness in facilitating a recovery. The board
is responsible for overseeing the covered bank's recovery planning
process. The board of a covered bank or an appropriate board committee
should review and approve the recovery plan at least annually, and as
needed to address significant changes made by management.
The OCC believes that a large, complex institution should undertake
recovery planning in order to be able to respond quickly to and recover
from the financial effects of severe stress on the institution. The
process of developing and maintaining a recovery plan also should cause
a covered bank's management and its board to enhance their focus on
risk governance with a view toward lessening the negative impact of
future events. OCC examiners will assess the appropriateness and
adequacy of the covered bank's ongoing recovery planning process as
part of the agency's regular supervisory activities.
Type of Review: Extension, without change, of a currently approved
collection.
Affected Public: Businesses or other for-profit; individuals.
Total Number of Respondents: 8.
Total Burden per Respondent: 7,543 hours.
Total Burden for Collection: 60,344 hours.
On October 29, 2021, the OCC published a 60-day notice for this
information collection, 86 FR 60105. No comments were received.
Comments continue to be solicited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the agency, including whether
the information has practical utility;
(b) The accuracy of the agency's estimate of the burden of the
collection of information;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of the collection on respondents,
including through the use of automated collection techniques or other
forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2022-02301 Filed 2-2-22; 8:45 am]
BILLING CODE 4810-33-P