SUPPORTING STATEMENT
APPLICATION FOR WAIVER OF PROHIBITION ON ACCEPTANCE OF BROKERED DEPOSITS BY ADEQUATELY CAPITALIZED INSURED INSTITUTIONS
(OMB No. 3064‑0099)
INTRODUCTION
The FDIC is requesting OMB approval for a three year extension without revision to the information as captioned above. The current clearance expires on October 31, 2007.
A. JUSTIFICATION
1. Circumstances and Need
In general, section 29 of the Federal Deposit Insurance Act prohibits undercapitalized insured depository institutions from accepting, renewing, or rolling over any brokered deposit. Adequately capitalized institutions may do so with a waiver from the FDIC. The requirements for a brokered deposit waiver are found at 12 CFR 303.243.
2. Use of Information Collected
The applicant is required to furnish information in letter form. Generally, the required information pertains to the timeframe for which the waiver is requested; policies governing the use of the deposits; the volume, rates, and maturities of deposits held and anticipated; asset growth plans; procedures and practices regarding deposit solicitations; management oversight of the solicitation, acceptance, and use of the deposits; the reasons the institution believes its acceptance, renewal, or rollover of brokered deposits would pose no undue risk; and a recent consolidated financial statement, including balance sheet and income statement.
The information furnished by the applicant is used by the FDIC as a basis for evaluating the factors required by statute before approving the application. Specifically, the FDIC must determine that the acceptance of such deposits does not constitute an unsafe or unsound practice with respect to such institution.
3. Use of Technology to Reduce Burden
The information is collected through FDICConnect, a secure interactive Website.
4. Efforts to Identify Duplication
This collection does not duplicate information available elsewhere. The information is unique to the occasion to which the application relates.
5. Minimizing the Burden on Small Banks
The information collected is only that required to evaluate the applicant, giving consideration to the statutory factors enumerated in section 29 of the FDI Act.
6. Consequences of Less Frequent Collections
The information is collected only when an adequately capitalized insured depository institution wishes to accept, renew, or rollover brokered deposits.
7. Special Circumstances
None.
8. Consultation with Persons Outside the FDIC
A “first” Federal Register notice seeking comment for this collection was published on August 29, 2007. No comments were received. This collection has also been the subject of a number of Notices of Proposed Rulemaking. Parts of the collection were developed under the auspices of the Conference of State Bank Supervisors by a working group comprised of representatives of selected state banking departments, the Federal Reserve Board and the FDIC.
9. Payment or Gift to Respondents
Not applicable.
10. Confidentiality
Any information deemed to be of a confidential nature would be exempt from public disclosure under relevant provisions of the Freedom of Information act (5 USC 552).
11. Information of a Sensitive Nature
No information of a sensitive nature is required.
12. Estimate of Annual Burden
Number of applications: 30.
Hours to prepare an application: 6.
Total annual burden hours: 180.
Average hourly rate: $40.
Total annual cost $7,200.
13. Capital, Start-up, Operating, and Maintenance Cost Burden
None.
14. Estimated Annual Cost to Federal Government
None.
15. Reason for Change in Burden
There is no change in burden.
16. Publication
There is no publication of the information collected.
17. Display of Expiration Date
Not applicable.
18. Exceptions to Certification
None.
B. STATISTICAL METHODS
Statistical methods are not employed in this collection of information.
Attachments
1. Statutory mandate, 12 USC 1831f
2. Regulatory mandate, 12 CFR 303.243
3. “First” Federal Register notice; draft “second” Federal Register notice
| File Type | application/msword |
| Author | shanft |
| Last Modified By | shanft |
| File Modified | 2007-10-14 |
| File Created | 2007-10-14 |