SUPPORTING STATEMENT
Notice Regarding Assessment Credits
(OMB No. 3064-0151)
JUSTIFICATION
Circumstances that make the collection necessary
Section 7(e)(3) of the Federal Deposit Insurance Act (12 USC 1817(e)(3)), as amended by the Federal Deposit Insurance Reform Act of 2005, requires that the FDIC provide by regulation an initial, one-time assessment credit to each “eligible” insured depository institution (or its successor) based on the assessment base of the institution as of December 31, 1996, as compared to the combined aggregate assessment base of all eligible institutions as of that date, taking into account such other factors as the Board determines to be appropriate. The one-time credits must, with certain exceptions, be applied by the FDIC to the maximum extent allowed by law to the assessments imposed on such institution that become due for assessment periods beginning after the effective date of the one-time credit regulations until such time as the credit is exhausted. For assessments that become due for assessment periods beginning in fiscal years 2008, 2009, and 2010, the FDI Act provides that credits may not be applied to more than 90 percent of an institution’s assessment.
For an institution participating in a transaction that results in the transfer of one-time assessment credits or the institution's 1996 assessment base, the information collection would occur when the institution provides notice to the FDIC seeking recognition of that transfer. Although most such transactions occurred during the first year following the effective date of the final rule (12 CFR Part 327, effective November 11, 2006), the FDIC anticipates that up to 4 such transactions will occur in subsequent years.
Use of the Information Collected
Institutions are required to notify the FDIC of transactions resulting in the transfer of the one-time assessment credit so that the FDIC can accurately track such transfers, apply available credits appropriately against institutions' deposit insurance assessments, and determine an institution's 1996 assessment base if the transaction involved both the base and the credit amount. The need for credit transfer information will expire when the credit pool has been exhausted.
Consideration of the use of improved information technology
Respondents may use any technology they wish to notify the FDIC.
Efforts to identify duplication
There is no duplication.
Methods used to minimize burden if the collection has a significant impact on a substantial number of small entities
This information collection does not have a significant impact on a substantial number of small entities.
Consequences to the Federal program if the collection were conducted less frequently
This is a one-time notice. Less frequent collection would make it impossible for the FDIC to accurately track the transfer of credits, apply available credits appropriately against institutions' deposit insurance assessments, and determine an institution's 1996 assessment base.
Special circumstances necessitating collection inconsistent with 5 CFR part 1320
No special circumstances exist.
Consultation with persons outside the agency
Payment to respondents
Not applicable.
Confidentiality
There are no confidentiality issues.
Information of a Sensitive Nature
None.
Burden estimate
Total estimated time per response: 2 hours
Total estimated annual burden: 4 respondents x 2 hours = 8 hours
Estimate of annualized costs to respondents
Not applicable.
Estimate of annualized costs to the government
Not applicable.
Analysis of change in burden
The current burden estimate reflects an adjustment of -22 hours based on a decrease in the number of respondents from 15 to 4. With the passage of time more banks have exhausted their one-time assessment credits.
Information regarding collections whose results are planned to be published for statistical use
The results of these collections will not be published for statistical use.
17. Display of expiration date
Not applicable.
18. Exceptions to certification statement
None.
STATISTICAL METHODS
Not applicable.
| File Type | application/msword |
| File Modified | 2012-07-18 |
| File Created | 2012-04-24 |