[Federal Register Volume 83, Number 156 (Monday, August 13, 2018)]
[Notices]
[Pages 40039-40041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17264]



[[Page 40039]]

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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0165, 0183, and -0196]


Agency Information Collection Activities: Submission for OMB 
Review; 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 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 a notice 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 September 12, 2018.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
    <bullet> Agency Website: https://www.FDIC.gov/regulations/laws/federal.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#8be8e4e6e6eee5fff8cbedefe2e8a5ece4fd"><span class="__cf_email__" data-cfemail="41222e2c2c242f353201272528226f262e37">[email protected]</span></a>. Include the name and number of 
the collection in the subject line of the message.
    <bullet> Mail: Manny Cabeza, Counsel, Room MB-3007, Federal Deposit 
Insurance Corporation, 550 17th Street NW, Washington, DC 20429.
    <bullet> 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, 
<a href="/cdn-cgi/l/email-protection#325f5153505748537274767b711c555d44"><span class="__cf_email__" data-cfemail="5f323c3e3d3a253e1f191b161c71383029">[email protected]</span></a>, 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: Interagency Supervisory Guidance for the Supervisory 
Review Process of Capital Adequacy (Pillar 2) Related to the 
Implementation of the Basel II Advanced Capital Framework.
    OMB Number: 3064-0165.
    Form Number: None.
    Affected Public: Insured state nonmember banks and certain 
subsidiaries of these entities.
    Burden Estimate:

                                                                Summary of Annual Burden
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                                                                    Estimated                                                              Total annual
                                            Type of burden          number of    Estimated time per response     Frequency of response       estimated
                                                                   respondents                                                             burden hours
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Pillar 2 Guidance....................  Record Keeping..........               2  105 hours..................  Quarterly.................             840
                                                                ----------------------------------------------------------------------------------------
    Total Estimated Annual Burden....  ........................  ..............  ...........................  ..........................             840
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    General Description of Collection: There has been no change in the 
method or substance of this information collection. The number of 
institutions subject to the record keeping requirements has decreased 
from eight (8) to two (2). In 2008 the Office of the Comptroller of the 
Currency, the Board of Governors of the Federal Reserve System and the 
FDIC issued a supervisory guidance document related to the supervisory 
review process of capital adequacy (Pillar 2) in connection with the 
implementation of the Basel II Advanced Capital Framework.\1\ Sections 
37, 41, 43 and 46 of the guidance include possible information 
collections. Section 37 provides that banks should state clearly the 
definition of capital used in any aspect of its internal capital 
adequacy assessment process (ICAAP) and document any changes in the 
internal definition of capital. Section 41 provides that banks should 
maintain thorough documentation of its ICAAP. Section 43 specifies that 
the board of directors should approve the bank's ICAAP, review it on a 
regular basis and approve any changes. Section 46 recommends that 
boards of directors periodically review the assessment of overall 
capital adequacy and analyze how measures of internal capital adequacy 
compare with other capital measures such as regulatory or accounting.
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    \1\ 73 FR 44620 (July 31, 2008).
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    2. Title: Credit Risk Retention.
    OMB Number: 3064-0183.
    Form Number: None.
    Affected Public: Insured state non-member banks; insured state 
branches of foreign banks; state savings associations; and certain 
subsidiaries of these entities.
    Burden Estimate:

                                            Summary of Annual Burden
----------------------------------------------------------------------------------------------------------------
                                                                                         Estimated    Estimated
                                                               Estimated    Estimated     average       annual
                                                               number of      annual     hours per      burden
                                                               offerings    frequency     response      hours
----------------------------------------------------------------------------------------------------------------
                                                Disclosure Burden
----------------------------------------------------------------------------------------------------------------
Subpart B:
    Sec.   373.4 Standard Risk Retention--Horizontal                    1            1          5.5          5.5
     Interest...............................................
    Sec.   373.4 Standard Risk Retention--Vertical Interest.           40            1          2.0           80
    Sec.   373.4 Standard Risk Retention--Combined Interest.            4            1          7.5           30
    Sec.   373.5 Revolving Master Trusts....................           15            1          7.0          105

[[Page 40040]]

 
    Sec.   373.6 Eligible ABCP Conduits.....................           15            1          3.0           45
    Sec.   373.7 Commercial MBS.............................           15            1        20.75       311.25
    Sec.   373.8 FNMA and FHLMC.............................           15            1          1.5         22.5
    Sec.   373.9 Open Market CLOs...........................           15            1        20.25       303.75
    Sec.   373.10 Qualified Tender Option Bonds.............           15            1          6.0           90
Subpart C:
    Sec.   373.11 Allocation of Risk Retention to an                    3            1          2.5          7.5
     Originator.............................................
Subpart D:
    Sec.   373.13 and .19(g) Exemption for Qualified                   13            1         1.25        16.25
     Residential Mortgages..................................
    Sec.   373.15 Exemption for Qualifying Commercial Loans,           16            1         20.0          320
     Commercial Real Estate and Automobile Loans............
    Sec.   373.16 Underwriting Standards for Qualifying                 6            1         1.25          7.5
     Commercial Loans.......................................
    Sec.   373.17 Underwriting Standards for Qualifying CRE             6            1         1.25          7.5
     Loans..................................................
    Sec.   373.18 Underwriting Standards for Qualifying                 6            1         1.25          7.5
     Automobile Loans.......................................
                                                             ---------------------------------------------------
        Total Estimated Disclosure Burden...................  ...........  ...........  ...........     1,359.25
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                                              Recordkeeping Burden
----------------------------------------------------------------------------------------------------------------
Subpart B:
    Sec.   373.4 Standard Risk Retention--Horizontal                    1            1          0.5          0.5
     Interest...............................................
    Sec.   373.4 Standard Risk Retention--Vertical Interest.           40            1          0.5           20
    Sec.   373.4 Standard Risk Retention--Combined Interest.            4            1          0.5            2
    Sec.   373.5 Revolving Master Trusts....................           15            1          0.5          7.5
    Sec.   373.6 Eligible ABCP Conduits.....................           15            1         20.0          300
    Sec.   373.7 Commercial MBS.............................           15            1         30.0          450
Subpart C:
    Sec.   373.11 Allocation of Risk Retention to an                    3            1         20.0           60
     Originator.............................................
Subpart D:
    Sec.   373.13 and .19(g) Exemption for Qualified                   13            1         40.0          520
     Residential Mortgages..................................
    Sec.   373.15 Exemption for Qualifying Commercial Loans,           16            1          0.5            8
     Commercial Real Estate and Automobile Loans............
    Sec.   373.16 Underwriting Standards for Qualifying                 6            1         40.0          240
     Commercial Loans.......................................
    Sec.   373.17 Underwriting Standards for Qualifying CRE             6            1         40.0          240
     Loans..................................................
    Sec.   373.18 Underwriting Standards for Qualifying                 6            1          400          240
     Automobile Loans.......................................
                                                             ---------------------------------------------------
        Total Estimated Recordkeeping Burden................  ...........  ...........  ...........        2,088
                                                             ---------------------------------------------------
            Total Estimated Annual Burden...................  ...........  ...........  ...........     3,447.25
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    There has been no change in the method or substance of this 
information collection. The above burden estimate is derived from the 
Federal regulatory agencies' estimate that there are currently 
approximately 1,400 annual offerings subject to the Credit Risk 
Retention rule (12 CFR part 373).\2\
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    \2\ The methodology and assumptions used to estimate burden are 
explained in detail in the agencies' supporting statements for their 
respective Credit Risk Retention information collections. For 
example, see, FDIC (3064-0183) available at https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201501-3064-002 SEC (3235-0712) 
available at https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201803-3235-014 and the OCC 1557-0249) 
available at https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201804-1557-004.
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    General Description of Collection: This information collection 
request relates to the disclosure and recordkeeping requirements of 12 
CFR part 373 (the Credit Risk Retention Rule) which implements section 
15G of the Securities Exchange Act of 1934,\3\ added by section 941 of 
the Dodd-Frank Wall Street Reform and Consumer Protection Act \4\ 
(Section 941). The Credit Risk Retention Rule was jointly issued by the 
Federal Deposit Insurance Corporation (``FDIC''), the Office of the 
Comptroller of the Currency (``OCC''), the Federal Reserve Board 
(``Board''), the Securities and Exchange Commission (``Commission'') 
and, with respect to the portions of the Rule addressing the 
securitization of residential mortgages, the Federal Housing Finance 
Agency (``FHFA'') and the Department of Housing and Urban Development 
(``HUD'').
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    \3\ 15 U.S.C. 78o-11.
    \4\ Public Law 111-2-3, 124 Stat. 1376 (2010).
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    Section 941 requires the Board, the FDIC, the OCC (collectively, 
the ``Federal banking agencies''), the Commission and, in the case of 
the securitization of any ``residential mortgage asset,'' together with 
HUD and FHFA, to jointly prescribe regulations that (i) require a 
securitizer to retain not less than five percent of the credit risk of 
any asset that the securitizer, through the issuance of an asset-backed 
security (``ABS''), transfers, sells or conveys to a third party, and 
(ii) prohibit a securitizer from directly or indirectly hedging or 
otherwise transferring the credit risk that the securitizer is required 
to retain under section 941 and the agencies' implementing rules.
    The Credit Risk Retention Rule provides a menu of credit risk 
retention options from which securitizers can choose and sets out the 
standards, including disclosure and recordkeeping requirements, for 
each option; identifies the eligibility criteria, including 
certification and disclosure requirements, that must be met for asset-
backed securities (ABS) offerings to qualify for certain exemptions; 
specifies the underwriting standards for

[[Page 40041]]

commercial real estate (CRE) loans, commercial loans and automobile 
loans, as well as disclosure, certification and recordkeeping 
requirements, that must be met for ABS issuances collateralized by such 
loans to qualify for reduced credit risk retention; and sets forth the 
circumstances under which retention obligations may be allocated by 
sponsors to originators, including disclosure and monitoring 
requirements.
    The recordkeeping requirements relate primarily to (i) the adoption 
and maintenance of various policies and procedures to ensure and 
monitor compliance with regulatory requirements and (ii) 
certifications, including as to the effectiveness of internal 
supervisory controls. The required disclosures for each risk retention 
option are intended to provide investors with material information 
concerning the sponsor's retained interest in a securitization 
transaction (e.g., the amount, form and nature of the retained 
interest, material assumptions and methodology, representations and 
warranties). The agencies believe that the disclosure and recordkeeping 
requirements will enhance market discipline, help ensure the quality of 
the assets underlying a securitization, and assist investors in 
evaluating transactions.
    3. Title: Disclosure Requirements Associated with the Supplementary 
Leverage Ratio.
    OMB Number: 3064-0196.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations that are subject to the FDIC's advanced approaches risk-
based capital rules.
    Burden Estimate:

                                                                Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Estimated                                                              Total Annual
                                            Type of burden          number of    Estimated time per response     Frequency of response       estimated
                                                                   respondents                                                             burden hours
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12 CFR 324.172 and 173...............  Disclosure..............               2  5 hours....................  Quarterly.................              40
                                                                ----------------------------------------------------------------------------------------
    Total Estimated Annual Burden....  ........................  ..............  ...........................  ..........................              40
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    There has been no change in the method or substance of this 
information collection. The number of institutions subject to the 
disclosure requirements has decreased from eight (8) to two (2).
    General Description of Collection: The supplementary leverage ratio 
regulations strengthen the definition of total leverage exposure and 
improve the measure of a banking organization's on- and off-balance 
sheet exposures. The rules are generally consistent with the Basel 
Committee on Banking Supervision's 2014 revisions and promote 
consistency in the calculation of this ratio across jurisdictions. All 
banking organizations that are subject to the advanced approaches risk-
based capital rules\5\ are required to disclose their supplementary 
leverage ratios.\6\ Advanced approaches banking organizations must 
report their supplementary leverage ratios on the applicable regulatory 
reports. The calculation and disclosure requirements for the 
supplementary leverage ratio in the federal banking agencies' 
regulatory capital rules are generally consistent with international 
standards published by the Basel Committee on Banking Supervision. 
These disclosures enhance the transparency and consistency of reporting 
requirements for the supplementary leverage ratio by all 
internationally active organizations.
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    \5\ 12 CFR 324.100(b)(1).
    \6\ 12 CFR 324.10(c), 324.172(d), and 324.173.
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    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 August 8, 2018.
Robert E. Feldman,
Executive Secretary, Federal Deposit Insurance Corporation.
[FR Doc. 2018-17264 Filed 8-10-18; 8:45 am]
 BILLING CODE 6714-01-P


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