[Federal Register Volume 88, Number 246 (Tuesday, December 26, 2023)]
[Notices]
[Pages 88978-88980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28302]


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NATIONAL CREDIT UNION ADMINISTRATION


Revisions of Agency Information Collection of a Previously 
Approved Collection; Request for Comments

AGENCY: National Credit Union Administration (NCUA).

ACTION: Notice of submission to the Office of Management and Budget.

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SUMMARY: As required by the Paperwork Reduction Act of 1995, The 
National Credit Union Administration (NCUA) is submitting the following 
extensions and revisions of currently approved collections to the 
Office of Management and Budget (OMB) for renewal.

DATES: Written comments should be received on or before January 25, 
2024 to be assured consideration.

ADDRESSES: 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: Copies of the submission may be 
obtained by contacting Mahala Vixamar at (703) 718-1155, emailing 
<a href="/cdn-cgi/l/email-protection#affffdeeecc0c2c2cac1dbdcefc1ccdace81c8c0d9"><span class="__cf_email__" data-cfemail="38686a797b5755555d564c4b78565b4d59165f574e">[email protected]</span></a>, or viewing the entire information collection 
request at www.reginfo.gov.

SUPPLEMENTARY INFORMATION: 
    OMB Number: 3133-NEW.
    Title: Supervisory Stress Test Annual Data Collection, 12 CFR part 
702, subpart C.
    Type of Review: New Collection.
    Abstract: The NCUA Board (Board) has determined, to protect the 
National Credit Union Share Insurance Fund (NCUSIF) and the credit 
union system, that the largest Federally Insured Credit Unions (FICUs) 
should have systems and processes in place to monitor and maintain 
their capital adequacy. Subpart C of part 702 of NCUA's regulations 
codifies capital planning and stress testing requirements for federally 
insured credit unions with $10 billion or more in assets (covered 
credit unions). Covered credit unions are further delineated by asset 
tiers. Tier I are credit union with $10 billion or more in total 
assets, but less than $15 billion in total assets; tier II are credit 
union with $15 billion or more in total assets, but less than $20 
billion in total assets; and tier III are credit union with $20 billion 
or more in total assets. Tier II and III credit unions are required to 
conduct supervisory stress tests and section 702.306 (b) codifies that 
NCUA reserves the right to conduct stress tests of covered credit 
unions at any time and where both NCUA and a covered credit union have 
conducted the tests, the results of NCUA's tests will determine whether 
the covered credit union has met the requirements of this subpart. To 
facilitate NCUA's ability to conduct supervisory stress test on covered 
credit unions, section 702.306(d) requires that covered credit unions 
must provide NCUA with any relevant qualitative or quantitative 
information requested by NCUA pertinent to capital plans or stress test 
under this part.
    Affected Public: Private Sector: Not-for-profit institutions.
    Estimated Number of Respondents: 12.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Responses: 12.
    Estimated Hours per Response: 20.
    Estimated Total Annual Burden Hours: 240.

    OMB Number: 3133-0061.
    Title: Central Liquidity Facility, 12 CFR part 725.
    Type of Review: Extension of a previously approved collection.
    Abstract: Part 725 contains the regulations implementing the 
National Credit Union Central Liquidity Facility Act, subchapter III of 
the Federal Credit Union Act. The NCUA Central Liquidity Facility is a 
mixed-ownership Government corporation within NCUA. It is managed by 
the NCUA Board and is owned by its member credit unions. The purpose of 
the Facility is to improve the general financial stability of credit 
unions by meeting their liquidity needs and thereby encourage savings, 
support consumer and mortgage lending and provide basic financial 
resources to all segments of the economy. The Central Liquidity 
Facility achieves this purpose through operation of a Central Liquidity 
Fund (CLF). The collection of information under this part is necessary 
for the CLF to determine credit worthiness, as required by 12 U.S.C. 
1795e(2).
    Affected Public: Private Sector: Not-for-profit institutions.
    Estimated Number of Respondents: 269.
    Estimated Number of Responses per Respondent: 4.260.
    Estimated Total Annual Responses: 1,146.
    Estimated Hours per Response: 0.603.
    Estimated Total Annual Burden Hours: 691.

    OMB Number: 3133-0067.
    Title: Corporate Credit Union Monthly Call Report and Annual Report 
of Officers.
    Type of Review: Revision of a currently approved collection.
    Abstract: Section 202(a)(1) of the Federal Credit Union Act (Act) 
requires federally insured credit unions to make reports of condition 
to the NCUA Board upon dates selected by it. Corporate credit unions 
report this information monthly on NCUA Form 5310, also known as the 
Corporate Credit Union Call Report. The financial and statistical 
information is essential to NCUA in carrying out its responsibility for 
supervising corporate credit unions. The Federal Credit Union Act, 12 
U.S.C. 1762, specifically requires Federal credit unions to report the 
identity of credit union officials. Section 741.6(a) requires 
federally-insured credit unions to submit a Report of Officials 
annually to NCUA containing the annual certification of compliance with 
security requirements. The branch information is requested under the 
authority of Sec.  741.6 of the NCUA Rules and Regulations. NCUA 
utilizes the information to monitor financial conditions in corporate 
credit unions, and to allocate supervision and examination resources.
    Affected Public: Private Sector: Not-for-profit institutions.
    Estimated Number of Respondents: 11.
    Estimated Number of Responses per Respondent: 13.
    Estimated Total Annual Responses: 143.
    Estimated Hours per Response: 3.77.
    Estimated Total Annual Burden Hours: 539.
    Reason for Change: The 5310 Corporate Call Report, Profile, and 
Corporate Financial Performance Reports (CFPR) for calendar year 2024 
have several changes that entail removal of references to Current 
Expected Credit Loss (CECL) early adoption language; removal of the 
Available for Sale Book Value references; additional supplemental 
information for charitable donation accounts, subordinated debt 
purchased from member credit unions, and additional information about 
CUSO investments; additional liquidity, weighted average life (WAL), 
and WAL with 50 percent prepayment information reporting, and Federal 
Reserve Bank Excess Balance Account reporting; clarification of 
Information

[[Page 88979]]

System and Technology questions on the Profile form; and corresponding 
updates to the Corporate Financial Performance Report (CFPR), including 
a new template for aggregate CFPRs that shows weighted average ratios. 
These changes have not adjusted the current burden.

    OMB Number: 3133-0199.
    Title: Capital Planning and Stress Testing, 12 CFR 702-E.
    Type of Review: Revision of a currently approved collection.
    Abstract: To protect the National Credit Union Share Insurance Fund 
(NCUSIF) and the credit union system, the largest Federally Insured 
Credit Unions (FICUs) need to have systems and processes in place to 
monitor and maintain their capital adequacy. Subpart C of part 702 of 
NCUA's regulations codifies the capital planning and stress testing 
requirements for federally insured credit unions with $10 billion or 
more in assets (covered credit unions). NCUA issues these regulations 
under the authority of section 120(a) requiring their supervised 
institutions to conduct annual stress tests. Stress testing is needed 
to assess the potential impact of expected and stressed economic 
conditions on the consolidated earnings, losses, and capital of a 
covered credit union over the planning horizon, taking into account the 
current state of the covered credit union and the covered credit 
union's risks, exposures, strategies, and activities.
    NCUA received one comment from the 60-Day Notice published at 88 FR 
62604. The commenter requested that NCUA provide additional 
clarification regarding the use of the standard form results reporting 
templates for purposes of reporting results of internal capital 
planning and analysis. The commenter noted that multiple items 
requested in the SST schedules were not applicable to internal capital 
analysis conducted by the credit union. As an example, the commenter 
cited Stress Test Capital and the Stress Test Capital Ratio currently 
required to be reported in the standard form templates were not 
applicable to their internal capital planning and analysis. The 
commenter also stated they felt use of the standard form reporting 
templates was redundant and ineffective whereas their capital plan 
includes commentary, analysis and supporting schedules that bring 
important context to the results of that analysis.
    NCUA agrees that some revision and clarification in the reporting 
instructions may be necessary to use the standard form results 
reporting templates for purposes of reporting results of both annual 
Supervisory Stress Testing results as well as results of internal 
capital adequacy assessment analysis and planning. We disagree, 
however, with the example provided by the commenter, because Section 
702.304(b)(1) of the Rules and Regulations requires covered credit 
unions to include, as a mandatory element in their annual capital 
planning, ``a quarterly assessment of the expected sources and levels 
of stress test capital over the planning horizon that reflects the 
covered credit union's financial state, size, complexity, risk profile, 
scope of operations, and existing level of capital, assuming both 
expected and unfavorable conditions''. The requirement to measure 
stress test capital as defined in section 702.302 of the Regulations 
aside, NCUA acknowledges that credit unions, as part of their internal 
capital adequacy assessment analysis and planning, may target different 
measures. NCUA has made revisions to the standard form templates to 
accommodate reporting of different capital measures in the balance 
sheet tab of the templates. Instructions and definitions were adjusted 
accordingly as well. Furthermore, NCUA disagrees with the commenter's 
statement that reporting results of internal capital analysis using the 
standard form templates would be inefficient and redundant as compared 
to the detailed analysis, commentary and supporting schedules contained 
in their annual capital plan. As stated in the initial PRA 
notification, reporting of internal capital analysis results in a 
standard form manner will allow NCUA to more efficiently and fairly 
review benchmarks and opine on the strength and reasonableness of 
credit unions analyses serving as the foundation of the capital 
adequacy assessment and planning. NCUA acknowledges there would be some 
initial burden placed on credit unions to revise and update systems and 
applications used to generate results of internal capital analysis in a 
form exportable to the reporting templates; however, NCUA believes that 
the benefits obtained in efficiency and fairness of review and 
assessment of capital analysis results outweigh these initial burdens.
    The commenter also stated that NCUA's inclusion of investment data 
as part of the revised annual data request is duplicative because ONES 
credit unions submit other investment data on a quarterly basis. NCUA 
agrees with the commenter that ONES credit unions are required to 
submit some instrument-level investment data to the ONES supervisory 
team on a quarterly basis. However, this only covers a portion of 
credit union investment activities. The annual collection of investment 
data covered by the PRA notice also captures instrument-level 
investment information in credit union employee benefit and charitable 
donation accounts. These additional instrument-level investment data 
are needed to model the credit union's balance sheet and income 
statement under stress scenarios. This information has historically 
been collected by NCUA on an annual basis. While NCUA agrees that 
future efforts should work to combine both investment data collections, 
continuing to collect this data as part of the current annual 
collection is still needed.
    Affected Public: Private Sector: Not-for-profit institutions.
    Estimated Number of Respondents: 12.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Responses: 12.
    Estimated Hours per Response: 781.67.
    Estimated Total Annual Burden Hours: 9,380.
    Reason for Change: Burden increased due to the increase in the 
number of credit unions meeting the asset size threshold for capital 
planning and self-run stress testing and because of the updated self-
run SST results reporting template, as well as reporting of internal 
capital analysis results on the updated template.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and included in the request for Office of Management 
and Budget approval. All comments will become a matter of public 
record. The public is invited to submit comments concerning: (a) 
whether the collection of information is necessary for the proper 
performance of the function of the agency, including whether the 
information will have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the collection of information, 
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 
the information on the respondents, including the use of automated 
collection techniques or other forms of information technology.


[[Page 88980]]


    By the National Credit Union Administration Board.

Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2023-28302 Filed 12-22-23; 8:45 am]
BILLING CODE 7535-01-P


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