[Federal Register Volume 85, Number 101 (Tuesday, May 26, 2020)]
[Notices]
[Pages 31500-31503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11223]
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FEDERAL DEPOSIT INSURANCE CORPORATION
[OMB No. 3064-0057; -0112; -0127; -0140; and -0175]
Agency Information Collection Activities: Submission for OMB
Review; Comment Request
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Agency information collection activities: submission for OMB
Review; comment request.
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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 renewal of the
existing information collections described below. On March 17, 2020,
the FDIC requested comment for 60 days on a proposal to renew these
information collections. No comments were received. The FDIC hereby
gives notice of its plan to submit to OMB a request to approve the
renewal of these information collections, and again invites comment on
their renewal.
DATES: Comments must be submitted on or before June 25, 2020.
ADDRESSES: Interested parties are invited to submit written comments to
the FDIC by any of the following methods:
https://www.FDIC.gov/regulations/laws/federal.
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 Building (located on F Street),
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 Collections of
Information
1. Title: Quarterly Certified Statement Invoice for Deposit
Insurance Assessment.
OMB Number: 3064-0057.
Affected Public: FDIC-insured depository institutions.
Burden Estimate:
Summary of Annual Burden
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Estimated
Information collection Estimated Estimated frequency time per Estimated
description Type of burden Obligation to respond number of of responses response annual burden
respondents (minutes) (hours)
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Certified Statement for Reporting............. Mandatory............. 5,258 Quarterly............. 20 7,011
Quarterly Deposit Insurance
Assessment (FDIC Form 6420/07).
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Total Estimated Annual Burden: 7,011 hours.
General Description of Collection: The FDIC collects deposit
insurance assessments on a quarterly basis. Each quarterly assessment
is based on an insured depository institution's quarterly report of
condition for the
[[Page 31501]]
prior calendar quarter. The FDIC collects the quarterly assessment
payments by means of direct debits through the Automated Clearing House
network. The information collection consists of the reporting
requirement associated with certifying the review by officials of the
insured institutions to confirm that the assessment data are accurate
and, in cases of inaccuracy, submission of corrected data.
There is no change in the substance or methodology of this
information collection. The change in burden is due solely to the
decrease in the estimated number of respondents by 823 from the
estimated 6,081 annual respondents in the currently-approved
information collection to the current estimate of 5,258. The decrease
in estimated respondents is the result of the drop in the total number
of insured depository institutions.
2. Title: Real Estate Lending Standards.
OMB Number: 3064-0112.
Summary of Annual Burden
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Estimated
Information collection Estimated Estimated frequency time per Estimated A
description Type of burden Obligation to respond number of of responses response annual burden
respondents (Hours) (Hours)
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Real Estate Lending Standards... Recordkeeping......... Mandatory............. 3,344 On Occasion........... 20 66,880
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Total Estimated Annual Burden: 66,880 hours.
Affected Public: Insured state nonmember banks and state savings
associations.
Burden Estimate:
General Description of Collection: Section 1828(o) of the Federal
Deposit Insurance Act requires each federal banking agency to adopt
uniform regulations prescribing real estate lending standards. Part 365
of the FDIC Rules and Regulations, which implements section 1828(o),
requires institutions to have real estate lending policies that include
(a) limits and standards consistent with safe and sound banking
practices; (b) prudent underwriting standards, including loan-to-value
ratio (LTV) limits that are clear and measurable; (c) loan
administration policies; (d) documentation, approval and reporting
requirements; and (e) a requirement for annual review and approval by
the board of directors. The rule also establishes supervisory LTV
limits and other underwriting considerations in the form of guidelines.
Since banks generally have written policies on real estate lending, the
additional burden imposed by this regulation is limited to
modifications to existing policies necessary to bring those policies
into compliance with the regulation and the development of a system to
report loans in excess of the guidelines to the board of directors.
There is no change in the substance or methodology of this
information collection. The change in burden is due solely to the
decrease in the estimated number of respondents by 534 from the
estimated 3,878 annual respondents in the currently-approved
information collection to the current estimate of 3,344. The decrease
in estimated respondents is the result of the drop in the total number
of FDIC-supervised institutions.
3. Title: Fast-Track Generic Clearance for the Collection of
Qualitative Feedback.
OMB Number: 3064-0127.
Affected Public: General public including FDIC insured depository
institutions.
Burden Estimate:
Summary of Annual Burden
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Estimated Estimated Estimated time Estimated
Information collection description Type of burden Obligation to respond number of frequency of per response annual burden
respondents responses (hours) (hours)
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Occasional Qualitative Surveys..... Reporting................ Voluntary............... 850 20 1 17,000
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Total Estimated Annual Burden: 17,000 hours.
General Description of Collection: The FDIC is requesting renewal
of this approved collection to use occasional qualitative surveys to
gather information from the public. While the subject and nature of the
surveys to be deployed under this information collection are yet to be
determined, based on prior experience it is expected that the number of
respondents will range from a few to, at times several thousands, but,
in general, these surveys are expected to involve an average of 850
respondents. Likewise, the time to respond to the surveys can range
from a few minutes to several hours. It is expected that the average
time to respond to a survey is approximately one hour. These surveys
are completely voluntary in nature. FDIC estimates that approximately
20 such surveys will be conducted in any given year.
The purpose of the surveys is, in general terms, to obtain
anecdotal information about regulatory burden, problems or successes in
the bank supervisory process (including both safety-and-soundness and
consumer-related exams), the perceived need for regulatory or statutory
change, and similar concerns. The information in these surveys is
anecdotal in nature, that is, samples are not necessarily random, the
results are not necessarily representative of a larger class of
potential respondents, and the goal is not to produce a statistically
valid and reliable database. Rather, the surveys are expected to yield
anecdotal information about the particular experiences and opinions of
members of the public, primarily staff at respondent banks or bank
customers. The information is used to improve the way FDIC relates to
its clients, to develop agendas for regulatory or statutory change, and
in some cases simply to learn how particular policies or programs are
working, or are perceived in particular cases.
There is no change in the substance or methodology of this
information collection. The change in burden is due solely to an
increase in the estimated number of surveys to be deployed annually
under this information collection. The increase in frequency from 15 to
20 surveys per year, resulted in an increase of 4,250 hours in total
estimated annual burden from 12,750 hours to 17,000 hours.
[[Page 31502]]
4. Title: Insurance Sales Consumer Protection.
OMB Number: 3064-0140.
Affected Public: Insured State nonmember banks and savings
associations that sell insurance products; persons who sell insurance
products in or on behalf of insured State nonmember banks and savings
associations.
Type of Burden: Third-party disclosure.
Obligation to Respond: Mandatory.
Burden Estimate:
Summary of Annual Burden
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Estimated Estimated time Estimated
Information collection Type of burden Obligation to respond number of Estimated frequency of per response annual burden
description respondents responses (hours) (hours)
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Insurance Sales Consumer Third Party Disclosure Mandatory............. 2,146 On Occasion........... 5 10,730
Protections.
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Total Estimated Annual Burden: 10,730.
General Description of Collection: Respondents must prepare and
provide certain disclosures to consumers (e.g., that insurance products
and annuities are not FDIC-insured) and obtain consumer
acknowledgments, at two different times: (1) Before the completion of
the initial sale of an insurance product or annuity to a consumer; and
(2) at the time of application for the extension of credit (if
insurance products or annuities are sold, solicited, advertised, or
offered in connection with an extension of credit).
There is no change in the substance or methodology of this
information collection. The change in burden is due solely to an
increase in the estimated number of respondents which is derived from
Call Report data indicating the number of by institutions offering
insurance products. The number of respondents increased by 126 from
2,020 to 2,146.
5. Title: Interagency Guidance on Sound Incentive Compensation
Practices.
OMB Number: 3064-0175.
Affected Public: Insured state nonmember banks and state savings
associations.
Obligation to Respond: Voluntary.
Burden Estimate:
Summary of Annual Burden
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Estimated Estimated Estimated time Total annual
Type of burden number of number of per response Frequency of response estimated
respondents responses (hours) burden (hours)
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Document policies and procedures Recordkeeping............ 1 1 40 Annual.................. 40
(Implementation).
Annual maintenance of policies and Recordkeeping............ 2,164 1 2 Annual.................. 4,328
procedures (Ongoing).
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Total Hourly Burden............ ......................... .............. .............. .............. ........................ 4,368
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Methodology and Assumptions: Previously, each institution
supervised by the FDIC was estimated to spend 40 hours per year
maintaining a record of its policies and procedures regarding incentive
based compensation. However, while an institution without any such
policies and procedures may take 40 hours to completely document them
for the first time, after performing the initial documentation, unless
an institution needs to revise its policies and procedures, there
should be no further recordkeeping burden. FDIC is using one respondent
as a placeholder to represent any institution that adopt incentive
based compensation for the first time. The estimate of 40 hours remains
unchanged from the 2017 estimate. Supervisory experience shows that
approximately 65% of large FDIC-supervised institutions revise their
incentive-based compensation policies and procedures annually. FDIC
estimates it takes approximately 2 hours for an institution to update
its record of its policies and procedures related to incentive
compensation. While a majority of the institutions supervised by the
FDIC are small, and may not use incentive based compensation, or may
use incentive based compensation arrangements less complex than those
used at large institutions, FDIC assumes that each year approximately
65 percent of FDIC-supervised institutions will spend approximately 2
hours each revising their records of their incentive based compensation
policies and procedures. As of December 31, 2019, the FDIC supervised
3,344 institutions. FDIC assumes that 2,164 (65%) of those institutions
will revise their records of incentive based compensation policies and
procedures each year.
General Description of Collection: This Guidance helps promote that
incentive compensation policies at insured state non-member banks do
not encourage excessive risk-taking and are consistent with the safety
and soundness of the organization. Under this Guidance, banks are
encouraged to: (i) Have policies and procedures that identify and
describe the role(s) of the personnel and units authorized to be
involved in incentive compensation arrangements, identify the source of
significant risk-related inputs, establish appropriate controls
governing these inputs to help ensure their integrity, and identify the
individual(s) and unit(s) whose approval is necessary for the
establishment or modification of incentive compensation arrangements;
(ii) create and maintain sufficient documentation to permit an audit of
the organization's processes for incentive compensation arrangements;
(iii) have any material exceptions or adjustments to the incentive
compensation arrangements established for senior executives approved
and documented by its board of directors; and (iv) have its board of
directors receive and review, on an annual or more frequent basis, an
assessment by management of the effectiveness of the design and
operation of the organization's incentive compensation system in
providing risk-taking incentives that are consistent with the
organization's safety and soundness.
[[Page 31503]]
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 May 20, 2020.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2020-11223 Filed 5-22-20; 8:45 am]
BILLING CODE 6714-01-P