[Federal Register Volume 87, Number 219 (Tuesday, November 15, 2022)]
[Notices]
[Pages 68491-68495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24781]


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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0139; -0169; -0189; -0202]


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, invites the general public and other Federal 
agencies to take this opportunity to comment on the request to renew 
the existing information collections described below (OMB Control No. 
3064-0139, -0169, -0189, and -0202). The notice of the proposed renewal 
for these information collections was previously published in the 
Federal Register on September 14, 2022, allowing for a 60-day comment 
period.

DATES: Comments must be submitted on or before December 15, 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.
    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 Collection of 
Information

    1. Title: CRA Sunshine
    OMB Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations and their affiliates and nongovernmental entities and 
persons.
    Burden Estimate:

[[Page 68492]]



                                                  Summary of Estimated Annual Burden (OMB No. 3064-0139)
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                                                                                                             Number of       Time per
Information collection (obligation to        Type of burden (frequency of response)          Number of     responses per     response      Annual burden
               respond)                                                                     respondents     respondent        (HH:MM)         (Hours)
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1. Reporting burden by covered banks-- Reporting (On occasion)..........................               1               1            1:00               1
 list of agreements, 12 CFR
 346.6(d)(1)(ii) (Mandatory).
2. Reporting burden by covered banks-- Reporting (On occasion)..........................               1               1            1:00               1
 copies of agreements, 12 CFR
 346.6(d)(1)(i) (Mandatory).
3. Reporting burden by NGEPs--copies   Reporting (On occasion)..........................               1               1            1:00               1
 of agreements, 12 CFR 346.6(c)
 (Mandatory).
4. Reporting burden by covered banks-- Reporting (Annual)...............................               3               1            4:00              12
 annual report, 12 CFR 346.7(b)
 (Mandatory).
5. Reporting burden by NGEPs--annual   Reporting (Annual)...............................               4               1            4:00              16
 report, 12 CFR 346.7(b) (Mandatory).
6. Reporting burden by covered banks-- Reporting (Annual)...............................               3               1            1:00               3
 filing NGEP report, 12 CFR
 346.7(f)(2)(ii) (Mandatory).
7. Disclosure burden by covered        Disclosure (On occasion).........................               3               1            1:00               3
 banks--covered agreements to public,
 12 CFR 346.6(b) (Mandatory).
8. Disclosure burden by NGEPs--        Disclosure (On occasion).........................               4               1            1:00               4
 covered agreements to public, 12 CFR
 346.6(b) (Mandatory).
9. Disclosure burden by covered banks  Disclosure (On occasion).........................               1               1            1:00               1
 to NGEPs--CRA affiliate activities,
 12 CFR 346.4(b) (Mandatory).
                                      ------------------------------------------------------------------------------------------------------------------
    Total Annual Burden (Hours)......  .................................................  ..............  ..............  ..............              42
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Source: FDIC.

    General Description of Collection: This collection implements a 
statutory requirement imposing reporting, disclosure and recordkeeping 
requirements on some community reinvestment-related agreements between 
insured depository institutions or affiliates, and nongovernmental 
entities or persons. The information assists interested members of the 
public in assessing whether the parties are fulfilling their 
agreements, and helps the agencies understand how the institutions they 
regulate are fulfilling their CRA responsibilities. There is no change 
in the method or substance of the collection. The overall reduction in 
burden hours is the result of economic fluctuation. In particular, the 
decline in the estimated overall annual time burden from 100 hours in 
2021 to 42 hours in 2022 is the result of a reduction in the number of 
banks and NGEPs reporting.
    2. Title: Qualifications for Failed Bank Acquisitions.
    OMB Number: 3064-0169.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                                  Summary of Estimated Annual Burden (OMB No. 3064-0169)
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                                                                                                             Number of       Time per
 Information collection (obligation         Type of burden (frequency of response)           Number of     responses per     response      Annual burden
             to respond)                                                                    respondents     respondent        (HH:MM)         (hours)
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1. Section D--Investor Reports on     Third-Party Disclosure (Annual)...................               3              12            2:00              72
 Affiliates (Required to Obtain or
 Retain a Benefit).
2. Section E--Maintenance of          Recordkeeping (Annual)............................               3               4            2:00              24
 Business Books and Records
 (Required to Obtain or Retain a
 Benefit).
3. Section I--Disclosures Regarding   Reporting (On occasion)...........................               1               1            4:00               4
 Investors and Entities in Ownership
 Chain (Required to Obtain or Retain
 a Benefit).
                                                                                         ---------------------------------------------------------------
    Total Annual Burden.............  ..................................................  ..............  ..............  ..............             100
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Source: FDIC.

    General Description of Collection: The FDIC's policy statement on 
Qualifications for Failed Bank Acquisitions provides guidance to 
private capital investors interested in acquiring or investing in 
failed insured

[[Page 68493]]

depository institutions regarding the terms and conditions for such 
investments or acquisitions. The information collected pursuant to the 
policy statement allows the FDIC to evaluate, among other things, 
whether such investors (and their related interests) could negatively 
impact the Deposit Insurance Fund, increase resolution costs, or 
operate in a manner that conflict with statutory safety and soundness 
principles and compliance requirements.
    There is no change in the method or substance of the collection. 
The overall reduction in burden hours is due to economic fluctuations. 
In particular, no private capital investors have attempted to bid on 
failed banks in the years since the last financial crisis. FDIC is 
using a placeholder estimate of 1 respondent in recognition that a 
private capital group could participate in the bidding process.
    3. Title: Stress Testing Recordkeeping and Reporting.
    OMB Number: 3064-0189.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                                  Summary of Estimated Annual Burden (OMB No. 3064-0189)
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                                                                                                             Number of       Time per
Information collection (obligation to        Type of burden (frequency of response)          Number of     responses per     response      Annual burden
               respond)                                                                     respondents     respondent        (HH:MM)         (hours)
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1. Annual Stress Test Reporting        Reporting (Biennial).............................               1               1           80:00              80
 Template and Documentation for
 covered banks, 12 CFR Part 325.6-
 (Mandatory)*.
2. Methodologies and Practices for     Recordkeeping (Biennial).........................               1               1          213:00             213
 covered banks, 12 CFR Part 325.5
 (Mandatory)*.
3. Publication--covered banks, 12 CFR  Third-Party Disclosure (Biennial)................               1               1           53:00              53
 Part 325.7 (Mandatory)*.
4. Documentation of Assumptions,       Recordkeeping (Annual)...........................              56               1           40:00           2,240
 Uncertainties and Limitations for
 FDIC-supervised IDIs with total
 consolidated assets of $10 billion
 or more, 2009 Interagency Guidance
 (Voluntary).
5. Summary of Test Result for FDIC-    Recordkeeping (Annual)...........................              56               1           40:00           2,240
 supervised IDIs with total
 consolidated assets of $10 billion
 or more, 2009 Interagency Guidance
 (Voluntary).
6. Policies and Procedures for FDIC-   Recordkeeping (Annual)...........................               5               1          180:00             900
 supervised IDIs with total
 consolidated assets of $10 billion
 or more, 2009 Interagency Guidance
 (Voluntary).
                                                                                         ---------------------------------------------------------------
    Total Annual Burden (Hours)......  .................................................  ..............  ..............  ..............           5,726
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Source: FDIC.

    General Description of Collection: The Federal Deposit Insurance 
Corporation (FDIC) has issued a rule requiring periodic stress testing 
by FDIC-supervised institutions having more than $250 billion in total 
assets, consistent with changes made by Section 401 of the Economic 
Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). 
Section 165(i)(2) of the Dodd-Frank Act requires each primary Federal 
regulator to issue consistent and comparable regulations to: (1) ensure 
that certain financial companies conduct stress tests; (2) establish 
the form and content of the required reports of such stress tests, and 
(3) require companies to publish a summary of the stress test results. 
As originally enacted, section 165(i)(2)(C) applied to all IDIs with 
average total consolidated assets of $10 billion or greater, required 
such IDIs to conduct annual stress tests, and required the use of three 
scenarios: baseline, adverse, and severely adverse. Consistent with the 
requirements of section 165(i)(2)(C), as originally enacted, the FDIC 
published its Final Rule implementing Section 165(i)(2) on October 15, 
2012.\1\ The requirements under part 325 applied to FDIC-supervised 
IDIs with average total consolidated assets of $10 billion or greater.
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    \1\ See https://www.govinfo.gov/content/pkg/FR-2012-10-15/pdf/FR-2012-10-15.pdf (pp. 8--18). While the Dodd-Frank Act specified a 
total consolidated asset size threshold of $10 billion, it did not 
specify a calculation methodology. As such, the FDIC's implementing 
regulations determined applicability by assessing average total 
consolidated assets over the last four consecutive Call Reports.
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    The Economic Growth, Regulatory Relief, and Consumer Protection Act 
(EGRRCPA), enacted on May 24, 2018, amended certain aspects of the 
company-run stress-testing requirements in section 165(i)(2) of the 
Dodd-Frank Act. Specifically, section 401 of EGRRCPA raises the minimum 
asset threshold from $10 billion \2\ to $250 billion; \3\ replaces the 
requirement for covered banks to conduct stress tests ``annually'' with 
the requirement to conduct stress tests ``periodically;'' and no longer 
requires the ``adverse'' stress-testing scenario, thus reducing the 
number of required stress test scenarios from three to two. EGRRCPA 
also makes certain conforming and technical changes that were 
previously included in an April 2018 notice of proposed rulemaking \4\ 
that was superseded, in part, by the enactment of EGRRCPA. The EGRRCPA 
amendments to the section 165(i)(2) stress testing

[[Page 68494]]

requirements became effective eighteen months after enactment.
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    \2\ See https://www.govinfo.gov/content/pkg/FR-2012-10-15/pdf/2012-25194.pdf.
    \3\ See https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23036.pdf.
    \4\ https://www.federalregister.gov/documents/2018/04/02/2018-06162/annual-stress-test-applicability-transition-for-covered-banks-with-50-billion-or-more-in-assets.
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    The FDIC's Final Rule \5\ implementing EGRRCPA specified that, in 
light of the frequency change from ``annually'' to ``periodically,'' 
stress tests would be conducted biennially, unless the covered bank is 
consolidated under a bank holding company that is required by Federal 
Reserve Board to conduct annual stress tests, in which case such IDI 
subsidiaries are also to conduct annual stress tests.\6\
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    \5\ See https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23036.pdf.
    \6\ See https://www.federalregister.gov/documents/2018/11/29/2018-24464/prudential-standards-for-large-bank-holding-companies-and-savings-and-loan-holding-companies--Category I and Category II 
bank holding companies and their IDI subsidiaries are required to 
stress test annually.
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    The aspects of part 325 that constitute an information collection 
are those that require a banking organization to (i) file stress test 
reports to be filed periodically with the FDIC and the Board of 
Governors of the Federal Reserve System (the Board) in the time, 
manner, and form specified by the FDIC (12 CFR 325.6); (ii) establish 
and maintain a system of controls, oversight, and documentation, 
including policies and procedures that describe the covered bank's 
stress test practices and methodologies, as well as processes for 
updating such bank's stress test practices, as well as specific 
calculations that must be made by the banking organization during its 
stress tests (12 CFR 325.5); and (iii) publish a summary of the results 
of its stress tests (12 CFR 325.7).
    On May 17, 2012, the Federal Deposit Insurance Corporation (FDIC), 
the Office of the Comptroller of the Currency (OCC), and the Board of 
Governors of the Federal Reserve (FRB), published the 2012 Interagency 
Guidance on the use of stress testing as a means to better understand 
the range of a banking organization's potential risk exposures. The 
guidance is intended for IDIs with total consolidated assets of more 
than $10 billion \7\ and provides an overview of how a banking 
organization should structure its stress testing activities to ensure 
they fit into the banking organization's overall risk management 
program. The purpose of the guidance is to outline broad principles for 
a satisfactory stress testing framework and describe the manner in 
which stress testing should be used, that is as an integral component 
of risk management applicable at various levels of aggregation within a 
banking organization as well as a tool for capital and liquidity 
planning. The 2012 Interagency Guidance recommends that IDIs stress 
test in coordination with a their ``overall strategy and annual 
planning cycles'' and assess and review their stress testing frameworks 
at least once a year to ensure that stress testing coverage is 
comprehensive, tests are relevant and current, methodologies are sound, 
and results are properly considered.''
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    \7\ The $10 billion asset threshold in the 2012 Interagency 
Guidance was calculated using total consolidated assets as of the 
most recent period, instead of the four-quarter rolling average of 
total consolidated assets that was used in determining eligibility 
for stress tests under the Dodd-Frank Act. However, the 2012 
Interagency Guidance also recommends that ``banking organizations 
with assets near the threshold should use reasonable judgment and 
consider, in conjunction with their primary federal supervisor as 
appropriate, whether they should consider preparing to follow the 
guidance.'' See https://www.federalregister.gov/documents/2012/05/17/2012-11989/supervisory-guidance-on-stress-testing-for-banking-organizations-with-more-than-10-billion-in-total.
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    The aspects of the 2012 Interagency Guidance that constitute an 
information collection are the provisions that state a banking 
organization should (i) have a stress testing framework that includes 
clearly defined objectives, well-designed scenarios tailored to the 
banking organization's business and risks, well documented assumptions, 
conceptually sound methodologies to assess potential impact on the 
banking organization's financial condition (Section II); (ii) maintain 
an internal summary of test results to document at a high level the 
range of its stress testing activities and outcomes, as well as 
proposed follow-up actions (Section III); and (iii) have policies and 
procedures for a stress testing framework (Section VI).
    There has been no change in the substance or methodology of this 
information collection. The 1,386 hour increase in total estimated 
annual burden from 4,340 hours in 2019 to 5,726 hours currently is 
driven by an increase in the number of FDIC-supervised IDIs that have 
at least $10 billion in total consolidated assets, which results in an 
increase in the estimated number of respondents for IC 4 and IC 5 from 
39 to 56 each, as well as an increase in the estimated number of annual 
respondents in IC 6 from 1 to 5. This change is attenuated by the 
change in stress testing frequency for institutions subject to stress 
testing requirements under the Dodd-Frank Act, as amended by EGRRCPA, 
from annually to biennially.
    4. Title: Recordkeeping for Timely Deposit Insurance Determination.
    OMB Number: 3064-0202.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                                           Summary of Estimated Annual Burden
                                                                   [OMB No. 3064-0202]
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                                                                                                             Number of       Time per
 Information collection  (obligation         Type of burden (frequency of response)          Number of     responses per     response      Annual burden
             to respond)                                                                    respondents     respondent        (HH:MM)         (hours)
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1. Implementation--Lowest Complexity,  Recordkeeping (Annual)...........................               1               1         3145:00           3,145
 12 CFR 370 (Mandatory).
2. Implementation--Middle Complexity,  Recordkeeping (Annual)...........................               1               1         5960:00           5,960
 12 CFR 370 (Mandatory).
3. Implementation--Highest             Recordkeeping (Annual)...........................               1               1        36307:00          36,307
 Complexity, 12 CFR 370 (Mandatory).
4. Ongoing--Lowest Complexity, 12 CFR  Recordkeeping (Annual)...........................               3               1            5:00              15
 370 (Mandatory).
5. Ongoing--Middle Complexity, 12 CFR  Recordkeeping (Annual)...........................              15               1           60:00             900
 370 (Mandatory).
6. Ongoing--Highest Complexity, 12     Recordkeeping (Annual)...........................              10               1           20:00             200
 CFR 370 (Mandatory).
7. Request for Exception, 12 CFR       Reporting (On occasion)..........................               1               1           20:00              20
 370.8(b) (RtoB).

[[Page 68495]]

 
8. Request for Release, 12 CFR         Reporting (On occasion)..........................               1               1          200:00             200
 370.8(c) (RtoB).
9. Request for Extension, 12 CFR       Reporting (On occasion)..........................               1               1          162:00             162
 370.6(b) (RtoB).
10. Request for Exemption, 12 CFR      Reporting (On occasion)..........................               1               1          163:00             163
 370.8(a) (RtoB).
11. Annual Certification and Report,   Reporting (Annual)...............................              30               1          186:00           5,580
 12 CFR 370.10(a) (Mandatory).
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    Total Annual Burden (Hours):.....  .................................................  ..............  ..............  ..............          52,652
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Source: FDIC.

    General Description of Collection: When a bank fails, the FDIC must 
provide depositors insured funds ``as soon as possible'' after failure 
while also resolving the failed bank in the least costly manner. The 12 
CFR part 370 facilitates prompt payment of FDIC-insured deposits when 
large insured depository institutions fail. The rule requires insured 
depository institutions that have two million or more deposit accounts 
(``covered institutions''), to maintain complete and accurate data on 
each depositor's ownership interest by right and capacity for all of 
the covered institution's deposit accounts. The covered institutions 
are required to develop the capability to calculate the insured and 
uninsured amounts for each deposit owner, by ownership right and 
capacity, for all deposit accounts. This data would be used by the FDIC 
to make timely deposit insurance determinations in the event of a 
covered insured depository institution's failure.
    There is no change in the method or substance of the collection. 
The overall reduction in burden hours arises almost entirely from the 
reduction in the number of respondents for ICs 1-3 capturing the 
implementation burdens, especially the reduction in the number of 
covered institutions of Highest Complexity. The reduction for that IC 
alone is almost 400,000 hours per year.

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 November 8, 2022.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2022-24781 Filed 11-14-22; 8:45 am]
BILLING CODE 6714-01-P