SPST-NEW Net Stable Funding Ratio (NSFR)(6-8-16

Supporting Statement

Net Stable Funding Ratio: Liquidity Risk Measurement

Standards and Disclosure Requirements (NSFR):

OMB Control No. 3064-NEW

A. Justification.

1. Circumstances that make the collection necessary:

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) are requesting comment on a proposed rule (proposed rule) that would implement a quantitative liquidity requirement consistent with the net stable funding ratio standard established by the Basel Committee on Banking Supervision. The requirement is designed to reduce the likelihood that disruptions to certain U.S. banking organization’s’ regular sources of funding will compromise their funding positions, as well as to promote improvements in the measurement and management of liquidity risk. The requirement is a medium-term liquidity metric that would require the largest banking organizations to maintain a stable funding profile over a one-year time horizon. The proposed rule would apply to all internationally active banking organizations, generally, bank holding companies, certain savings and loan holding companies, and depository institutions with more than $250 billion in total assets or more than $10 billion in on-balance sheet foreign exposure, and to their consolidated subsidiaries that are depository institutions with $10 billion or more in total consolidated assets.

2. Use of the information:

The requirement is designed to reduce the likelihood that disruptions to certain U.S. banking organization’s regular sources of funding will compromise its funding position, as well as to promote improvements in the measurement and management of liquidity risk.

3. Consideration of the use of improved information technology:

Respondents may use any type of improved information technology they have available to meet the requirements of this regulation.

4. Efforts to identify duplication:

This information is not available elsewhere.

5. Methods used to minimize burden if the collection has a significant impact on substantial number of small entities:

This collection does not have a significant impact on a substantial number of small entities.

6. Consequences to the Federal program if the collection were conducted less frequently:

Less frequent collection would result in safety and soundness concerns.

7. Special circumstances necessitating collection inconsistent with 5 C.F.R. Part 1320:

This collection is conducted in accordance with the guidelines in 5 C.F.R. § 1320.6.

8. Efforts to consult with persons outside the agency:

The Agencies issued a notice of proposed rulemaking on June 1, 2016 (81 FR 35124) with comments due no later than August 5, 2016.

9. Payment to respondents.

There is no payment to respondents.

10. Any assurance of confidentiality:

There is no assurance of confidentiality.

11. Justification for questions of a sensitive nature:

There are no questions of a sensitive nature.

12. Estimate of Hourly Burden and Cost

Respondents: Insured state non-member banks, insured state branches of foreign banks, state savings associations, and certain subsidiaries of these entities.

Estimated number of respondents: 1

Time per Response: Reporting - 0.75 hours; recordkeeping - 120 hours.

Frequency of response: Reporting – varies; recordkeeping - 1.

Total Estimated Annual Burden: reporting - 4.25 hours; recordkeeping - 120 hours.

13. Estimate of Start-up Costs to Respondents:

None.

14. Estimate of annualized costs to the government:

None.

15. Changes in burden:

This is a new collection.

16. Information regarding collections whose results are planned to be published for statistical use:

The FDIC has no plans to publish the information for statistical use.

17. Display of expiration date.

Not applicable.

18. Exceptions to certification statement.

None.

B. Collections of Information Employing Statistical Methods.

Not applicable.