[Federal Register Volume 87, Number 98 (Friday, May 20, 2022)]
[Notices]
[Pages 31056-31058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10939]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Submission for OMB Review; Leveraged Lending

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

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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 respondents are 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 
``Leveraged Lending.'' The OCC also is giving notice that it has sent 
the collection to OMB for review.

DATES: Comments must be received by June 21, 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, 1557-0315, 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 
``1557-0315'' 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 February 24, 2022, the OCC published a 60-day notice for this 
information collection, 87 FR 10428. 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'' from the 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 ``1557-0315'' or 
``Leveraged Lending.'' 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, Clearance Officer, 
(202) 649-5490, Chief Counsel's Office, Office of the Comptroller of 
the Currency, 400 7th Street SW, Washington, DC 20219. If you are deaf, 
hard of hearing, or have a speech disability, please dial 7-1-1 to 
access telecommunications relay services.

SUPPLEMENTARY INFORMATION:  Under the PRA (44 U.S.C. 3501-3520), 
Federal agencies must obtain approval from OMB for each collection of 
information 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 
recommendations, 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 the collection in this 
notice.
    Title: Leveraged Lending.
    OMB Control No.: 1557-0315.
    Description: On March 22, 2013, the agencies \1\ issued guidance to 
the financial institutions they supervise \2\ on how to evaluate and 
monitor credit risks in leveraged loans, understand the effect of 
changes in borrowers' enterprise values on credit portfolio quality, 
and assess the sensitivity of future credit losses to these changes in 
enterprise values.\3\ In regard to the underwriting of such credits, 
the guidance provides information for financial institutions to 
consider in assessing whether borrowers have the ability to repay 
credits when due and whether borrowers have sustainable capital 
structures, including bank borrowings and other debt, to support their 
continued operations through economic cycles. The guidance also 
provides information to financial institutions on the risks and 
potential impact of stressful events and circumstances on a borrower's 
financial condition.
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    \1\ OCC, Board of Governors of the Federal Reserve System, and 
Federal Deposit Insurance Corporation.
    \2\ For the OCC, the term ``financial institution'' or 
``institution'' includes national banks, Federal savings 
associations, and Federal branches and agencies supervised by the 
OCC.
    \3\ 78 FR 17766 (March 22, 2013).
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    The final guidance recommends that financial institutions consider 
developing: (i) Underwriting policies for leveraged lending, including 
stress-testing procedures for leveraged credits; (ii) risk management 
policies, including stress-testing procedures for pipeline exposures; 
and (iii) policies and procedures for incorporating the results of 
leveraged credit and pipeline stress tests into the firm's overall 
stress-testing framework. Although they are not legal requirements, 
these recommended policies qualify as ``collections of information'' as 
defined in the PRA.
    Respondents are financial institutions with leveraged lending 
activities, as defined in the guidance, that may develop policies 
recommended in the guidance.
    Title: Guidance on Leveraged Lending.
    OMB Control No.: 1557-0315.
    Frequency of Response: Annual.
    Affected Public: Financial institutions with leveraged lending.
    Burden Estimates:
    Estimated number of respondents: 1 to build; 29 for ongoing use.
    Estimated total annual burden: 1,350.4 hours to build; 49,462 hours 
for ongoing use.
    Total estimated annual burden: 50,812.4 hours.
    The burden hours have been adjusted to remove the build burden for 
all but new institutions.
    On February 24, 2022, the OCC published a 60-day notice for this 
information collection, 87 FR 10428. No comments were received. 
Comments continue to be requested on:
    (a) Whether the information collection is necessary for the proper 
performance of the OCC's functions, including whether the information 
has practical utility;
    (b) The accuracy of the OCC's 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;
    (d) Ways to minimize the burden of the information collection on 
respondents, including through the use

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of automated collection techniques or other forms of information 
technology; and
    (e) Estimates of capital or startup 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. 2022-10939 Filed 5-19-22; 8:45 am]
BILLING CODE P