60-Day Federal Register Notice

FR1-0178 Market Risk Capital Requirements 84 FR 1121 Feb 1 2019.pdf

Market Risk Capital Requirements

60-Day Federal Register Notice

OMB: 3064-0178

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 3064-0178 can be found here:

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1121

Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices
SUMMARY OF ANNUAL BURDEN
Frequency
of response

20 hours .............

On Occasion.

71,500

3,575

60 hours .............

On Occasion.

214,500

Mandatory ..........

3,575

20 hours .............

On Occasion.

71,500

Third Party Disclosure ..........

Mandatory ..........

3,575

25 hours .............

On Occasion.

89,375

Reporting ..............................

Mandatory ..........

3,575

15 minutes .........

893.75

Reporting ..............................

Mandatory ..........

88,646

15 minutes .........

On Occasion.
On Occasion.

Reporting ..............................

Mandatory ..........

38,118

15 minutes .........

On Occasion.

9,529.50

Recordkeeping ......................

Mandatory ..........

3,575

4 hours ...............

On Occasion.

14,300

Third Party Disclosure ..........

Mandatory ..........

88,646

1 hour .................

On Occasion.

88,646

...............................................

............................

........................

............................

...............

582,405.75

Obligation
to respond

Financial Institution Policies
and Procedures for Ensuring Employee-Mortgage
Loan Originator Compliance With S.A.F.E. Act Requirements.
Financial Institution Procedures to Track and Monitor
Compliance with S.A.F.E.
Act Compliance.
Financial Institution Procedures for the Collection and
Maintenance of Employee
Mortgage Loan Originator’s
Criminal History Background Reports.
Financial Institution Procedures for Public Disclosure
of Mortgage Loan Originator’s Unique Identifier.
Financial Institution Information Reporting to Registry.
Mortgage Loan Originator Initial and Annual Renewal
Registration Reporting and
Authorization Requirements.
Mortgage Loan Originator
Registration Updates Upon
Change in Circumstances.
Financial Institution Procedures for the Collection of
Employee Mortgage Loan
Originator’s Fingerprints.
Mortgage Loan Originator
Procedures for Disclosure
to Consumers of Unique
Identifier.

Recordkeeping ......................

Mandatory ..........

3,575

Recordkeeping ......................

Mandatory ..........

Recordkeeping ......................

Total Hourly Burden .......

General Description of Collection
This information collection
implements the Secure and Fair
Enforcement for Mortgage Licensing Act
of 2008 (SAFE Act) requirement that
employees of Federally-regulated
institutions who engage in the business
of a mortgage loan originator to register
with the Nationwide Mortgage
Licensing System and Registry and
establishes national licensing and
registration requirements. It also directs
Federally-regulated institutions to have
written policies and procedures in place
to ensure that their employees who
perform mortgage loan originations
comply with the registration and other
SAFE Act requirements.
There is no change in the method or
substance of the collection. The overall
reduction in burden hours is the result
of economic fluctuation. In particular,
the number of respondents has
decreased while the hours per response
and frequency of responses have
remained the same.
Dated at Washington, DC, on January 28,
2019.

VerDate Sep<11>2014

Total
annual
estimated
burden
(hours)

Estimated
time per
response

Estimated
number of
respondents

Type of
burden

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Estimated
frequency of
responses

Federal Deposit Insurance Corporation.
Valerie Best,
Assistant Executive Secretary.
[FR Doc. 2019–00561 Filed 1–31–19; 8:45 am]
BILLING CODE 6714–01–P

FEDERAL DEPOSIT INSURANCE
CORPORATION
Agency Information Collection
Activities: Proposed Collection
Renewal; Comment Request (OMB No.
3064–0178)
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice and request for comment.
AGENCY:

The FDIC, as part of its
obligations under the Paperwork
Reduction Act of 1995 (PRA), invites the
general public and other Federal
agencies to take this opportunity to
comment on the renewal of the existing
information collection described below
(3064–0178).
DATES: Comments must be submitted on
or before April 2, 2019.
SUMMARY:

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22,161.50

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: comments@fdic.gov. Include
the name and number of the collection
in the subject line of the message.
• Mail: Jennifer Jones (202–898–
6768), Counsel, MB–3105, 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:
Jennifer Jones, Counsel, 202–898–6768,
jennjones@fdic.gov, MB–3105, Federal
ADDRESSES:

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Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices

Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION: Proposal
to renew the following currently
approved collection of information:

1. Title: Market Risk Capital
Requirements.
OMB Number: 3064–0178.
Form Number: None.

Affected Public: Insured state
nonmember banks and state savings
associations.
Burden Estimate

SUMMARY OF ANNUAL BURDEN
Estimated frequency of responses

Estimated time
per response

On Occasion .............

Mandatory .................

On Occasion .............

Recordkeeping ..........

Mandatory .................

On Occasion .............

Recordkeeping ..........

Mandatory .................

On Occasion .............

Reporting ..................
Recordkeeping ..........

Mandatory .................
Mandatory .................

1
1

1
4

16
16

On Occasion .............
On Occasion .............

16
64

Recordkeeping ..........

Mandatory .................

On Occasion .............

Recordkeeping ..........

Mandatory .................

On Occasion .............

Reporting ..................

Mandatory .................

On Occasion .............

160

Reporting ..................
Reporting ..................

Mandatory .................
Mandatory .................

1
1

4
4

88
480

On Occasion .............
On Occasion .............

352
1,920

Reporting ..................

Mandatory .................

480

On Occasion .............

1,920

Recordkeeping ..........

Mandatory .................

On Occasion .............

Recordkeeping ..........
Third-Party Disclosure.
Recordkeeping ..........
Third-Party Disclosure.

Mandatory .................
Mandatory .................

1
1

4
4

120
8

On Occasion .............
On Occasion .............

480
32

Mandatory .................
Mandatory .................

1
1

1
4

40
8

On Occasion .............
On Occasion .............

40
32

Third-Party Disclosure.

Mandatory .................

On Occasion .............

...................................

........................

...................................

5,228

Information collection
(IC) description

Type of burden

Obligation to respond

Identification of trading
positions.
Trading and hedging
strategies.
Active management of
covered positions.
Review of internal
models.
Internal audit report ....
Backtesting adjustments to risk-based
capital ratio calculations.
Demonstrate appropriateness of proxies.
Retention of subportfolio information.
Stressed Var-based
measure quantitative
requirements.
Modeled specific risk ..
Incremental risk
model-prior approval.
Comprehensive risk
measurement-prior
approval.
Requirements of stress
testing.
Securitization positions
Quantitative market
risk disclosures.
Disclosure policy .........
Quantitative disclosures for each portfolio of covered
positons.
Qualitative disclosures
for each portfolio of
covered positons.

Recordkeeping ..........

Mandatory .................

Recordkeeping ..........

Total Hourly Burden.

General Description of Collection
The FDIC’s market risk capital rules
(12 CFR part 324, subpart F) enhance
risk sensitivity, increase transparency
through enhanced disclosures and
include requirements for the public
disclosure of certain qualitative and
quantitative information about the
market risk of state nonmember banks
and state savings associations (FDICsupervised institutions). The market risk
rule applies only if a bank holding
company or bank has aggregated trading
assets and trading liabilities equal to 10
percent or more of quarter-end total
assets or $1 billion or more. Currently,
only one FDIC-regulated entity meets
the criteria of the information collection
requirements that are located at 12 CFR
324.203 through 324.212. The collection
of information is necessary to ensure

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Estimated
number of respondents

capital adequacy appropriate for the
level of market risk.
Section 324.203(a)(1) requires FDICsupervised institutions to have clearly
defined policies and procedures for
determining which trading assets and
trading liabilities are trading positions
and specifies the factors a FDICsupervised institutions must take into
account in drafting those policies and
procedures. Section 324.203(a)(2)
requires FDIC-supervised institutions to
have clearly defined trading and
hedging strategies for trading positions
that are approved by senior management
and specifies what the strategies must
articulate. Section 324.203(b)(1) requires
FDIC-supervised institutions to have
clearly defined policies and procedures
for actively managing all covered
positions and specifies the minimum
requirements for those policies and

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Frequency of response

Total annual
estimated burden

procedures. Sections 324.203(c)(4)
through 324.203(c)(10) require the
annual review of internal models and
specify certain requirements for those
models. Section 324.203(d) requires the
internal audit group of a FDICsupervised institution to prepare an
annual report to the board of directors
on the effectiveness of controls
supporting the market risk measurement
systems.
Section 324.204(b) requires FDICsupervised institutions to conduct
quarterly backtesting. Section
324.205(a)(5) requires institutions to
demonstrate to the FDIC the
appropriateness of proxies used to
capture risks within value-at-risk
models. Section 324.205(c) requires
institutions to develop, retain, and make
available to the FDIC value-at-risk and
profit and loss information on sub-

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Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices
portfolios for two years. Section
324.206(b)(3) requires FDIC-supervised
institutions to have policies and
procedures that describe how they
determine the period of significant
financial stress used to calculate the
institution’s stressed value-at-risk
models and to obtain prior FDIC
approval for any material changes to
these policies and procedures.
Section 324.207(b)(1) details
requirements applicable to a FDICsupervised institution when the FDICsupervised institution uses internal
models to measure the specific risk of
certain covered positions. Section
324.208 requires FDIC-supervised
institutions to obtain prior written FDIC
approval for incremental risk modeling.
Section 324.209(a) requires prior FDIC
approval for the use of a comprehensive
risk measure. Section 324.209(c)(2)
requires FDIC-supervised institutions to
retain and report the results of
supervisory stress testing. Section
324.210(f)(2)(i) requires FDICsupervised institutions to document an
internal analysis of the risk
characteristics of each securitization
position in order to demonstrate an
understanding of the position. Section
324.212 requires quarterly quantitative
disclosures, annual qualitative
disclosures, and a formal disclosure
policy approved by the board of
directors that addresses the approach for
determining the market risk disclosures
it makes.
The annual burden for this
information collection is estimated to be
5,228 hours. This represents an increase
of 1,300 hours from the current burden
estimate of 3,928 hours. This increase is
not due to any new requirements
imposed by the FDIC. Rather, it is due
to FDIC’s reassessment of the number of
respondents as well as the frequency of
responses per respondent per year.
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 January 28,
2019.
Federal Deposit Insurance Corporation.
Valerie Best,
Assistant Executive Secretary.
[FR Doc. 2019–00558 Filed 1–31–19; 8:45 am]
BILLING CODE 6714–01–P

FEDERAL DEPOSIT INSURANCE
CORPORATION
[OMB No. 3064–0117; –0145; and –0152]

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: comments@fdic.gov. Include
the name and number of the collection
in the subject line of the message.
• Mail: Manny Cabeza (202–898–
3767), Counsel, 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.

ADDRESSES:

FOR FURTHER INFORMATION CONTACT:

Agency Information Collection
Activities: Submission for OMB
Review; Comment Request
AGENCY:

Manny Cabeza, Counsel, 202–898–3767,
mcabeza@fdic.gov, MB–3007, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.

The FDIC, as part of its
obligations under the Paperwork
Reduction Act of 1995, invites the
general public and other Federal
agencies to take this opportunity to
comment on the renewal of the existing
information collections described below
(control Numbers 3064–0117; 3064–
0145; and 3064–0152). On November
23, 2018, the FDIC requested comment
for 60 days on a proposal to renew these
information collections. 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 their renewal.
DATES: Comments must be submitted on
or before March 4, 2019.

On
November 23, 2018, the FDIC requested
comment for 60 days on a proposal to
renew the information collections
described below.1 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 these renewals.
Proposal to renew the following
currently approved collections of
information:
1. Title: Mutual-to-Stock Conversion
of State Savings Banks.
OMB Number: 3064–0117.
Form Number: None.
Affected Public: Insured state savings
associations.
Burden Estimate:

Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice and request for comment.
SUMMARY:

SUPPLEMENTARY INFORMATION:

SUMMARY OF ANNUAL BURDEN

Mutual-to-Stock Conversion of State Savings Bank.

1 83

Type of
burden

Obligation
to respond

Reporting .......

Mandatory ......

Estimated
number of
respondents

Estimated
frequency
of responses
5

Estimated
time per
response
(hours)

250

FR 59833 (November 23, 2018).

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Frequency
of response
On Occasion ..

Total annual
estimated
burden
(hours)
1,250

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