SUPPORTING STATEMENT
PROCEDURES FOR MONITORING BANK PROTECTION ACT COMPLIANCE
(OMB No. 3064‑0095)
INTRODUCTION
The FDIC is requesting OMB approval of a three‑year extension of the collection of information captioned above, without any change in the method or substance of collection. This collection is imposed on insured nonmember banks as a result 12 CFR Part 326, subpart A ‑‑ MINIMUM SECURITY DEVICES AND PROCEDURES FOR INSURED NONMEMBER BANKS.
A. JUSTIFICATION
1. Circumstances and Need
The Bank Protection Act of 1968 (12 USC 1881‑1884) requires each Federal supervisory agency to promulgate rules establishing minimum standards for security devices and procedures to discourage financial crime and to assist in the identification of persons who commit such crimes.
To avoid the necessity of constantly updating a technology‑based regulation, the FDIC takes a flexible approach to implementing this statute. It requires each insured nonmember bank to designate a security officer who will administer a written security program. The security program shall: (1) establish procedures for opening and closing for business and for safekeeping valuables; (2) establish procedures that will assist in identifying persons committing crimes against the bank; (3) provide for initial and periodic training of employees in their responsibilities under the security program; and (4) provide for selecting, testing, operating and maintaining security devices as prescribed in the regulation. In addition, the FDIC requires the security officer to report at least annually to the bank's board of directors on the effectiveness of the security program.
2. Use of Information Collected
The information is used by FDIC bank examiners to assure that insured nonmember banks comply with 12 CFR 326, which implements the Bank Protection Act of 1968, and to review bank security programs.
3. Use of Technology to Reduce Burden
The FDIC has created an interactive Website, FDICconnect, between FDIC insured institutions and the FDIC. All PRA collections are reviewed to determine if converting to electronic collection is cost beneficial. In this case, however, updates to the written security program and training materials are not required to be submitted to the FDIC. Institutions need only maintain the records for review during on-site examinations and, therefore, may use technology to the extent deemed feasible and appropriate to maintain and update the required documents.
4. Efforts to Identify Duplication
The information is collected from insured nonmember banks and does not duplicate information available within other government agencies nor in other FDIC collections.
5. Minimizing the Burden on Small Banks
The establishment of a written security program and developing training materials are one‑time requirements. Updating and maintaining the program and training materials should not involve more than a minimal burden.
6. Consequences of Less Frequent Collection
The only periodic recordkeeping requirement is the security officer's annual report to the board of directors, the completion of which is in most cases a small burden. Less frequent reporting would create a risk of inadequate security systems in insured nonmember banks.
7. Circumstances Inconsistent with 5 CFR 1320.6
The recordkeeping requirements of 12 CFR 326 are not inconsistent with 5 CFR 1320.6.
8. Consultation with Persons Outside the FDIC
A “first” Federal Register notice seeking public comment for a 60-day period was published on September 20, 2012 (77 FR 58377). No comments were received.
9. Payment or Gift to Respondents
None.
Confidentiality
All information required by this recordkeeping is retained by the bank for review by FDIC bank examiners. Information obtained thereby would be exempt from public disclosure under the provisions of the Freedom of Information Act.
11. Information of a Sensitive Nature
No information of a sensitive nature is collected.
12. Estimate of Annual Burden
Estimated number of respondents: 4,700 state nonmember banks
Average annual burden hours: 1/2 hour
Average annual burden hours: 2,350
13. Capital, Start-up, Operating, and Maintenance Cost Burden
None.
14. Estimated Annual Cost to Federal Government
None.
15. Reason for Change in Burden
The change in burden from 2,585 hours to 2,350 is an adjustment due to a reduction in the number of state nonmember banks.
16. Publication
The information is retained at the bank for review by FDIC examiners to verify compliance with regulatory requirements. No publication is made of the records.
17. Display of Expiration Date
Not applicable.
18. Exceptions to Certification
None.
B. STATISTICAL METHODS
Not applicable.
| File Type | application/msword |
| File Title | SUPPORTING STATEMENT |
| Author | FDIC |
| Last Modified By | gkuiper |
| File Modified | 2012-11-29 |
| File Created | 2012-11-29 |