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[Federal Register Volume 83, Number 134 (Thursday, July 12, 2018)]
[Notices]
[Pages 32290-32293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14864]

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FEDERAL DEPOSIT INSURANCE CORPORATION

Agency Information Collection Activities: Submission for OMB 
Review; Comment Request (OMB No. 3064-0109; 0124; and 0162)

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

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SUMMARY: The FDIC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other Federal 
agencies to take this opportunity to comment on the renewal of existing 
information collections, as required by the Paperwork Reduction Act of 
1995. The FDIC published notices of its intent to renew the information 
collections described below in the Federal Register and requested 
comment for 60 days. No comments were received. The FDIC hereby gives 
notice of its plan to submit to OMB a request to approve the renewal of 
these collections, and again invites comment on the renewal.

DATES: Comments must be submitted on or before August 13, 2018.

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, Counsel, Room MB-3007, 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.
    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, Counsel, 202-898-3767, 
[email protected], MB-3007, 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: Notice of Branch Closure.
    OMB Number: 3064-0109.
    Form Number: None.
    Affected Public: Insured depository institutions.
    Burden Estimate:

[[Page 32291]]

                                                                Summary of Annual Burden
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                                                                                                                                               Average
                                                                                                       Estimated                                total
                                                                                          Estimated     time per                                annual
                                         Type of burden         Obligation to respond     number of     response     Frequency of response    estimated
                                                                                         respondents    (hours)                                 burden
                                                                                                                                               (hours)
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Adoption of Closure Policy.......  Recordkeeping............  Mandatory................           23            8  One time................          184
Notice of Closure................  Disclosure...............  Mandatory................          683            2  On occasion.............        1,366
                                                                                        ----------------------------------------------------------------
    Total Estimated Annual Burden  .........................  .........................  ...........  ...........  ........................        1,550
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    General Description of Collection: Section 42 of the Federal 
Deposit Insurance Act mandates that an insured depository institution 
closing a branch notify its primary federal regulator not later than 90 
days prior to the closing. The statute also provides that a notice be 
posted on the premises of the branch for the 30-day period immediately 
prior to the closing and that the customers be notified in a mailing at 
least 90 days prior to the closing. Each insured depository institution 
that has one or more branches is required to adopt a written policy for 
branch closings.
    Burden Estimate Methodology and Assumptions:
    There are no changes in the methodology or substance of this 
information collection. FDIC believes that the existing estimate of the 
time required to develop a written branch closure policy and to provide 
the required branch closure notices is accurate. The number of branch 
closure notifications is closely related to the number of branches 
closed, while the number of closure policy adoptions equals the number 
newly chartered branch banking institutions and the number of existing 
banking institutions that transition from having no branches to having 
at least one branch. To derive an estimate of average annual branch 
closure notifications, FDIC Risk Management Supervision (RMS) staff 
counted the number of full-service standalone and in-store branches 
that closed between 2015 and 2017. In addition, FDIC staff count the 
number of newly chartered branch banking institutions and the number of 
institutions that transitioned from having no branches to having at 
least one branch. To derive an estimate of average annual branch 
closure notifications, FDIC Risk Management Supervision (RMS) staff 
counted the number of full-service standalone and in-store branches 
that closed between 2015 and 2017. In addition, FDIC staff counted the 
number of newly chartered branch banking institutions and the number of 
institutions that transitioned from having no branches to having at 
least one branch. FDIC records reflect that there were 683 branch 
closures, on average, each year between 2015 and 2017. FDIC estimates 
that an average of 23 institutions each year will transition from 
having no branches to having at least one branch.
    2. Title: Notification of Change of Insured Status.
    OMB Number: 3064-0124.
    Form Number: None.
    Affected Public: Insured depository institutions.
    Burden Estimate:

                                                                Summary of Annual Burden
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                                                                                                                                               Average
                                                                                                       Estimated                                total
                                                                                          Estimated     time per                                annual
                                         Type of burden         Obligation to respond     number of     response     Frequency of response    estimated
                                                                                         respondents    (hours)                                 burden
                                                                                                                                               (hours)
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Certification....................  Reporting................  Mandatory................          150          .25  On Occasion.............         37.5
Notification.....................  Disclosure...............  Mandatory................            2            1  On Occasion.............            2
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    Total Estimated Annual Burden  .........................  .........................  ...........  ...........  ........................         39.5
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    General Description of Collection:
    This information collection consists of two parts: (1) A 
certification that insured depository institutions provide the FDIC 
when all deposit liabilities from one insured depository institution 
are assumed from another insured depository institution, with the 
latter institution responsible for providing the certification, and (2) 
a notification that an insured depository institution provides to its 
depositors when it seeks to voluntarily terminate its insured status. 
The certification is necessary to implement the provisions of section 
8(q) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(q), regarding 
termination of the insured status of the transferring institution and 
termination of the separate deposit insurance coverage provided on 
deposit accounts assumed by the assuming institution. The depositor 
notification is required by section 8(a) (6) of the Federal Deposit 
Insurance Act, 12 U.S.C. 1818(a) (6). This provision ensures that the 
institution's depositors receive appropriate information regarding the 
institution's intent to terminate its insured status and that, prior to 
the termination of the institution's insured status, depositors receive 
appropriate information concerning federal deposit insurance coverage 
of their accounts once the institution's insured status is terminated.
    There is no change in the methodology or substance of this 
information collection. The number of certifications submitted under 
this information collection is closely related to the number of insured 
depository institutions that are acquired by another depository 
institution through mergers or as a result of the closing of the 
institution by its chartering authority. The number of depositor 
notifications is driven by the number of institutions that elect to 
voluntarily terminate its insured status without having its deposits 
assumed by another insured depository institution. The change in burden 
is due to economic fluctuation reflected in a lower number of 
certifications following mergers or closures and a reduction in the 
number of notifications due to voluntary terminations of insured 
status.
    3. Title: Large Bank Deposit Insurance Program.

[[Page 32292]]

    OMB Number: 3064-0162.
    Form Number: None.
    Affected Public: Insured depository institutions having at least $2 
billion in deposits and at least either: (a) 250,000 Deposit accounts; 
or (b) $20 billion in total assets, regardless of the number of deposit 
accounts (a ``covered institution'').
    Burden Estimate:

                                                                Summary of Annual Burden
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                                                                                                                                               Average
                                                                                           Average     Estimated                                total
                                                                                          estimated     time per                                annual
                                         Type of burden         Obligation to  respond    number of     response     Frequency of response    estimated
                                                                                         respondents    (hours)                                 burden
                                                                                                                                               (hours)
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                                                                     Implementation
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Posting and removing provisional   Recordkeeping............  Mandatory................            8          150  One time................        1,200
 holds--360.9(c)(1) and (2).
Providing standard data format     Recordkeeping............  Mandatory................            8          110  One time................          880
 for deposit account and customer
 information--360.9(d)(1).
Notification of identity of        Reporting................  Mandatory................            8            8  One time................           64
 person responsible for producing
 standard data downloads--
 360.9(c)(3).
Request for exemption from         Reporting................  Voluntary................            1           20  On occasion.............           20
 provisional hold requirements--
 360.9(c)(9).
Provide deposit account and        Reporting................  Mandatory................            8           40  On occasion.............          320
 customer information in required
 standard format--360.9(d)(3).
Request for extension of           Reporting................  Voluntary................            1           20  On occasion.............           20
 compliance deadline--360.9(e)(7).
Request for exemption--360.9(f)..  Reporting................  Voluntary................            1           20  On occasion.............           20
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    Total Implementation Burden..  .........................  .........................  ...........  ...........  ........................        2,524
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                                                                         Ongoing
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Notification of identity of        Reporting................  Mandatory................          153            8  On occasion.............        1,224
 person responsible for producing
 standard data downloads--
 360.9(c)(3).
Request for exemption from         Reporting................  Voluntary................            1           20  On occasion.............           20
 provisional hold requirements--
 360.9(c)(9).
Request for exemption--360.9(f)..  Reporting................  Voluntary................            1           20  On occasion.............           20
Test compliance with 360.9(c)-(d)  Reporting................  Mandatory................           81           80  On occasion.............        6,480
 pursuant to 360.9(h).
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    Total Ongoing Burden.........  .........................  .........................  ...........  ...........  ........................        7,744
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        Total Estimated Annual     .........................  .........................  ...........  ...........  ........................       10,268
         Burden.
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    General Description of Collection: Upon the failure of an FDIC-
insured depository institution, the FDIC is required to pay insured 
deposits as soon as possible.\1\ To do so, the FDIC must be able to 
quickly determine the total insured amount for each depositor. To make 
this determination, the FDIC must ascertain the balances of all deposit 
accounts owned by the same depositor in the same ownership capacity at 
a failed institution as of the day of failure. The FDIC issued a 
regulation (12 CFR 360.9) to modernize the process of determining the 
insurance status of each depositor in the event of failure of a covered 
institution. The regulation requires covered institutions to adopt 
mechanisms that would, in the event of the institution's failure (1) 
provide the FDIC with standard deposit account and other customer 
information, and (2) allow the placement and release of holds on 
liability accounts, including deposits. The regulation applies only to 
covered institutions and imposes the following recordkeeping and 
reporting requirements:
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    \1\ The FDIC can meet its obligation to pay insured deposits 
either by payment in cash or by making available to each depositor a 
transferred deposit in a another insured depository institution. 12 
U.S.C Sec.  1821(f)(1).
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Recordkeeping

    360.9(c)(1) and (2)--Posting and Removing Provisional Holds. 
Covered institutions must have an automatic process for placing a 
provisional hold on deposit accounts within timeframes specified in 
FDIC regulations.
    360.9(d)(1) and (2)--Providing Standard Data Format for Deposit 
Account and Customer Information. Covered institutions must produce 
information in the specified standard data format.

Reporting

    360.9(c)(3)--Covered institutions must notify the FDIC of the 
person(s) responsible for producing required standard data downloads 
and for administering provisional holds.
    360.9(c)(9)--A covered institution may request an exemption from 
the provisional hold requirements for certain account systems servicing 
a relatively small number of accounts where manual application of 
provisional holds is feasible.
    360.9(d)(3)--Upon request by the FDIC, a covered institution must 
submit the data required by 360.9(d)(1) .
    360.9(e)(7)--A covered institution may request an extension of the 
deadline to comply with provisional hold and standard data format 
requirements.
    360.9(f)--A covered institution may request an exemption from the 
provisional hold and standard data format requirements due to high 
concentration of deposits incidental to credit card operations.
    360.9(h)--A covered institution's compliance with the recordkeeping 
and reporting requirements set forth in the rule will be tested by the 
FDIC.
    Burden Estimate Methodology and Assumptions:
    The FDIC is revising its burden estimate because the number of 
covered institutions has decreased due to economic fluctuations and 
most covered institutions have already implemented the requirements of 
the regulation and will only face reduced ongoing compliance burdens. 
Based on FDIC Call Report data,\2\ the regulation currently applies to 
145 institutions.

[[Page 32293]]

The FDIC has determined that in the past, between 1 and 3 new 
institutions per quarter have become covered under the regulation. FDIC 
estimates that on average, 2 new institutions per quarter (8 new 
institutions per year) will become covered and be subject to initial 
implementation burden. The following table reflects the FDCI's estimate 
of the breakdown of covered institutions facing implementation and 
ongoing burden during the next three years:
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    \2\ FDIC Call Report, September 30, 2017.

                                             Number of Institutions
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                                                                 Year 1       Year 2       Year 3      Average
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Implementation..............................................            8            8            8            8
Ongoing.....................................................          145          153          161          153
                                                             ---------------------------------------------------
    Total...................................................          153          161          169          161
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    All covered institutions will be required to comply with the 
requirements of 360.9(h). FDIC estimates that half of the covered 
institutions will be tested for compliance each year. As a result, it 
is estimated that an average of 81 covered institutions will be 
affected by this reporting burden annually. No institutions have 
requested an extension under section 360.9(e)(7), or exemptions under 
sections 360.9(c)(9) or 360.9(f). The ``Summary of Annual Burden'' 
table above lists a respondent count of 1 for these requests as 
placeholders to preserve the burden estimates for these activities.
    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.

    Dated at Washington, DC, on July 6, 2018.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018-14864 Filed 7-11-18; 8:45 am]
 BILLING CODE 6714-01-P
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