[Federal Register Volume 84, Number 202 (Friday, October 18, 2019)]
[Notices]
[Pages 55959-55960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22733]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is adopting a proposal to extend for three years, without revision, the
Recordkeeping Provisions Associated with Guidance on Leveraged Lending
(FR 4203; OMB No. 7100-0354).
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of
Governors of the Federal Reserve System, Washington, DC 20551, (202)
452-3829.
Office of Management and Budget (OMB) Desk Officer--Shagufta
Ahmed--Office of Information and Regulatory Affairs, Office of
Management and
[[Page 55960]]
Budget, New Executive Office Building, Room 10235, 725 17th Street NW,
Washington, DC 20503, or by fax to (202) 395-6974.
A copy of the PRA OMB submission, including the reporting form and
instructions, supporting statement, and other documentation will be
placed into OMB's public docket files. These documents also are
available on the Federal Reserve Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears above.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the Paperwork Reduction Act (PRA) to approve and assign
OMB control numbers to collections of information conducted or
sponsored by the Board. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. Copies of the PRA Submission, supporting
statements, and approved collection of information instrument(s) are
placed into OMB's public docket files.
Final Approval Under OMB Delegated Authority of the Extension for Three
Years, Without Revision, of the Following Information Collection
Report title: Recordkeeping Provisions Associated with Guidance on
Leveraged Lending.
Agency form number: FR 4203.
OMB control number: 7100-0354.
Frequency: On occasion.
Respondents: All financial institutions substantively engaged in
leveraged lending activities supervised by the Board.
Estimated number of respondents: 40.
Estimated average hours per response: 755.
Estimated annual burden hours: 30,200 hours.
General description of report: The Interagency Guidance on
Leveraged Lending (Guidance) \1\ outlines high-level principles related
to safe-and-sound leveraged lending activities. The Guidance includes a
number of voluntary recordkeeping provisions that apply to financial
institutions for which the Board is the primary federal supervisor,
including bank holding companies, savings and loan holding companies,
state member banks, and state-chartered branches and agencies of
foreign banks, that engage in leveraged lending activities. There are
no reporting forms associated with this information collection (the FR
4203 designation is for internal purposes only).
---------------------------------------------------------------------------
\1\ ``Interagency Guidance on Leveraged Lending,'' March 21,
2013, available at https://www.federalreserve.gov/supervisionreg/srletters/sr1303a1.pdf. The Guidance was published jointly by the
Board, the Office of the Comptroller of the Currency, and the
Federal Deposit Insurance Corporation.
---------------------------------------------------------------------------
The Guidance includes several provisions that suggest financial
institutions engage in recordkeeping. The guidance states that
institutions should maintain:
Well-defined underwriting standards that, among other
things, define acceptable leverage levels and describe amortization
expectations for senior and subordinate debt;
sound management information systems that enable
management to identify, aggregate, and monitor leveraged exposures and
comply with policy across all business lines;
strong pipeline management policies and procedures that,
among other things, provide for real-time information on exposures and
limits, and exceptions to the timing of expected distributions and
approved hold levels; and
guidelines for conducting periodic portfolio and pipeline
stress tests to quantify the potential impact of economic and market
conditions on the institution's asset quality, earnings, liquidity, and
capital.
Many community banks are not subject to the Guidance because they
do not engage in leveraged lending. The limited number of community and
smaller institutions that are involved in leveraged lending activities
may discuss with the Federal Reserve System how to implement these
collections of information in a cost-effective manner that is
appropriate for the complexity of their exposures and activities.
Legal authorization and confidentiality: The recordkeeping
provisions of the Guidance are authorized pursuant to sections 9(6),
25, and 25A of the Federal Reserve Act (12 U.S.C. 324, 602, and 625)
(for state member banks, agreement corporations, and Edge corporations,
respectively); section 5(c) of the Bank Holding Company Act (12 U.S.C.
1844(c)) (for bank holding companies); section 10(b)(3) of the Home
Owners' Loan Act (12 U.S.C. 1467a(b)(3)) (for savings and loan holding
companies); and section 7(c)(2) of the International Banking Act (12
U.S.C. 3105(c)(2)) (for state-licensed branches and agencies of foreign
banks, other than insured branches).
The information collections under the FR 4203 are voluntary.
Because these records would be maintained at each banking organization,
the Freedom of Information Act (FOIA) would only be implicated if the
Board obtained such records as part of the examination or supervision
of a banking organization. In the event the records are obtained by the
Board as part of an examination or supervision of a financial
institution, this information may be considered confidential pursuant
to exemption 8 of the FOIA, which protects information contained in
``examination, operating, or condition reports'' obtained in the bank
supervisory process (5 U.S.C. 552(b)(8)). In addition, the information
may also be kept confidential under exemption 4 of the FOIA, which
protects ``commercial or financial information obtained from a person
[that is] privileged or confidential'' (5 U.S.C. 552(b)(4)).
Current actions: On July 3, 2019, the Board published a notice in
the Federal Register (84 FR 31866) requesting public comment for 60
days on the extension, without revision, of the Recordkeeping
Provisions Associated with Guidance on Leveraged Lending. The comment
period for this notice expired on September 3, 2019. The Board did not
receive any comments.
Board of Governors of the Federal Reserve System, October 11,
2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-22733 Filed 10-17-19; 8:45 am]
BILLING CODE 6210-01-P