[Federal Register Volume 87, Number 81 (Wednesday, April 27, 2022)]
[Notices]
[Pages 25015-25017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08916]


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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0001; -0178]


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. 
3064-0001 and -0178).

DATES: Comments must be submitted on or before June 27, 2022.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
     Agency Website: https://www.fdic.gov/resources/regulations/federal-register-publications/.
     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 NW building (located on F Street 
NW), 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 collection of information:
    1. Title: Interagency Charter and Federal Deposit Insurance 
Application.
    OMB Number: 3064-0001.
    Form Number: 6200-05.
    Affected Public: Banks or Savings Associations wishing to become 
FDIC insured depository institutions.
    Burden Estimate:

[[Page 25016]]



                                                           Summary of Estimated Annual Burden
                                                                   [OMB No. 3064-0001]
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                                                                                                                Number of
 Information collection description    Type of burden (obligation to     Frequency of response   Number of    responses per   Hours per    Annual burden
                                                  respond)                                      respondents    respondent      response       (hours)
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Interagency Charter and Federal      Reporting (Mandatory)............  On Occasion...........           20               1          125           2,500
 Deposit Insurance Application.
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Source: FDIC.

    General Description of Collection: The Federal Deposit Insurance 
Act requires financial institutions to apply to the FDIC to obtain 
deposit insurance. This collection provides FDIC with the information 
needed to evaluate the applications.
    There is no change in the method or substance of the collection. 
The decrease in burden hours is the result of economic fluctuation. In 
particular, the number of respondents has decreased while the hours per 
response and frequency of responses have remained the same.
    2. Title: Market Risk Capital Requirements.
    OMB Number: 3064-0178.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

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                                                                                                                Estimated     Estimated
                                                                                                 Estimated      number of      time per      Estimated
 Information collection description            Type of burden            Frequency of response   number of    responses per    response    annual burden
                                                                                                respondents    respondent      (hours)        (hours)
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Identification of Trading Positions  Recordkeeping....................  Annual................            1               1           40              40
 (IC-1).
Trading and Hedging Strategies (IC-  Recordkeeping....................  Annual................            1               1           16              16
 2).
Active Management of Covered         Recordkeeping....................  Annual................            1               1           16              16
 Positions (IC-3).
Prior Written Approval to Use        Reporting........................  Annual................            1               1            8               8
 Internal Models (IC-4).
Documentation of Internal Models     Recordkeeping....................  Annual................            1               1           24              24
 and Other Activities (IC-5).
Prior Approval for Certain Capital   Reporting........................  Annual................            1               1            8               8
 Standards (IC-6).
Demonstrate Appropriateness of       Recordkeeping....................  Annual................            1               1            8               8
 Proxies (IC-7).
Retention of Subportfolio            Recordkeeping....................  Annual................            1               1           24              24
 Information (IC-8).
Stressed VaR-based Measure           Recordkeeping & Reporting........  Semiannual............            1               4           40             160
 Quantitative Requirements (IC-9).
Incremental Risk Modeling Prior      Reporting........................  Quarterly.............            1               4          480           1,920
 Approval (IC-10).
Comprehensive Risk Measurement       Reporting........................  Quarterly.............            1               4          480           1,920
 Prior Approval (IC-11).
Recordkeeping for Stress Tests (IC-  Recordkeeping....................  Quarterly.............            1               4            8              32
 12).
Demonstrate Understanding of         Recordkeeping....................  Periodically..........            1             100            2             200
 Securitization Positions and
 Performance (IC-13).
Disclosure Policy (IC-14)..........  Recordkeeping....................  Annual................            1               1           40              40
Quantitative Market Risk             Third-Party Disclosure...........  Quarterly.............            1               4            8              32
 Disclosures (IC-15).
Qualitative Market Risk Disclosures  Third-Party Disclosure...........  Annual................            1               1           12              12
 (IC-16).
                                                                                               ---------------------------------------------------------
    Total Annual Burden Hours......  .................................  ......................  ...........  ..............  ...........           4,460
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    General Description of Collection: The FDIC's market risk capital 
rules (12 CFR part 324, subpart F) enhance risk sensitivity, increase 
transparency through enhanced disclosures and include requirements for 
the public disclosure of certain qualitative and quantitative 
information about the market risk of state nonmember banks and state 
savings associations (covered FDIC-supervised institutions). The market 
risk rule applies only if a bank holding company or bank has aggregated 
trading assets and trading liabilities equal to 10 percent or more of 
quarter-end total assets or $1 billion or more (covered FDIC-supervised 
institutions). Currently, only one FDIC regulated entity meets the 
criteria of the information collection requirements that are located at 
12 CFR 324.203 through 324.212. The collection of information is 
necessary to ensure capital adequacy appropriate for the level of 
market risk. Section 324.203(a)(1) requires covered FDIC-supervised 
institutions to have clearly defined policies and procedures for 
determining which trading assets and trading liabilities are trading 
positions and specifies the factors a covered FDIC-supervised 
institution must take into account in drafting those policies and 
procedures. Section 324.203(a)(2) requires covered FDIC supervised 
institutions to have clearly defined trading and hedging strategies for 
trading positions that are approved by senior management and specifies 
what the strategies must articulate. Section 324.203(b)(1) requires 
covered FDIC-supervised institutions to have clearly defined policies 
and procedures for actively managing all covered positions and 
specifies the minimum requirements for those policies and procedures. 
Sections 324.203(c)(4) through 324.203(c)(10) require the annual review 
of internal models and specify certain requirements for those models. 
Section 324.203(d) requires the internal audit group of a covered FDIC 
supervised institution to prepare an annual report to the board of 
directors on the effectiveness of controls supporting the market risk 
measurement systems. Section 324.204(b) requires covered FDIC-
supervised institutions to conduct quarterly back testing. Section 
324.205(a)(5) requires institutions to demonstrate to the FDIC the 
appropriateness of proxies used to capture risks within value-at-risk 
models. Section 324.205(c) requires institutions to develop, retain, 
and make available to the FDIC value-at-risk and profit and loss 
information on sub portfolios for two years. Section 324.206(b)(3) 
requires covered FDIC supervised institutions to have policies and 
procedures that describe how they determine the period of significant 
financial stress used to calculate the institution's stressed value-at-
risk models and to obtain prior FDIC approval for any material changes 
to

[[Page 25017]]

these policies and procedures. Section 324.207(b)(1) details 
requirements applicable to a covered FDIC-supervised institution when 
the covered FDIC-supervised institution uses internal models to measure 
the specific risk of certain covered positions. Section 324.208 
requires covered FDIC-supervised institutions to obtain prior written 
FDIC approval for including equity positions in its incremental risk 
modeling. Section 324.209(a) requires prior FDIC approval for the use 
of a comprehensive risk measure. Section 324.209(c)(2) requires covered 
FDIC-supervised institutions to retain and report the results of 
supervisory stress testing. Section 324.210(f)(2)(i) requires covered 
FDIC supervised institutions to document an internal analysis of the 
risk characteristics of each securitization position in order to 
demonstrate an understanding of the position. Section 324.212 applies 
to certain covered FDIC supervised institutions that are not 
subsidiaries of bank holding companies, and requires quarterly 
quantitative disclosures, annual qualitative disclosures, and a formal 
disclosure policy approved by the board of directors that addresses the 
approach for determining the market risk disclosures it makes.
    Relative to the 2019 information collection request (ICR), the set 
of information collections (ICs) included in the above burden estimates 
has been revised. A detailed review of the 18 ICs included in the 2019 
ICR showed that seven of the ICs appear inconsistent with the 
requirements in subpart F or potentially repeat other identified PRA 
requirements in subpart F. Those seven ICs have been deleted from the 
set of ICs retained in this renewal.\1\ Additionally, a detailed review 
of subpart F found five provisions that require covered institutions to 
conduct third-party disclosure, recordkeeping, or reporting and were 
not included in the 2019 ICR. The PRA requirements of these five 
provisions have been introduced as ICs in the burden estimate above.\2\ 
Lastly, a review of the 2019 Supporting Statement for the Federal 
Reserve's approved information collection (OMB No. 7100-0314) for its 
Market Risk Capital Requirements regulations (12 CFR 217 subpart F) 
shows that the OMB No. 7100-0314 list of ICs corresponds with the 
modified set of ICs in this renewal, and would therefore promote 
consistency among how the banking agencies estimate the PRA burden for 
the market risk capital rule.\3\
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    \1\ The ICs deleted from the 2019 ICR are: IC 4--Review of 
internal models; IC 5--Internal audit report; IC 6--Backtesting 
adjustments to risk-based capital ratio calculations; IC 10--Modeled 
specific risk; IC 13--Requirements of stress testing; IC 14--
Securitization position; IC 17--Quantitative disclosures for each 
portfolio of covered positions (IC numbers refer to those in the 
2019 ICR memo).
    \2\ The newly-introduced ICs are: IC 4--Prior approval to use 
internal models (324.203(c)(1)); IC 5--Documentation of internal 
models and other activities (324.203(f)); IC 6--Prior approval for 
certain capital standards (324.204(a)(2)(vi)(B)); IC 12--
Recordkeeping for stress tests (324.209(c)(2)); and IC 13--
Demonstrate understanding of securitization positions 
(324.210(f)(1)).
    \3\ See https://www.reginfo.gov/public/do/PRAOMBHistory?ombControlNumber=7100-0314.
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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 April 21, 2022.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2022-08916 Filed 4-26-22; 8:45 am]
BILLING CODE 6714-01-P