[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