SUPPORTING STATEMENT
INTERAGENCY CHARTER AND FEDERAL DEPOSIT INSURANCE APPLICATION
(OMB No. 3064‑0001)
INTRODUCTION
The FDIC is requesting renewal of the above-captioned collection of information. The information in this collection is used by the FDIC when it decides whether to provide deposit insurance to financial institutions that request it. It is also used by the Office of Comptroller of the Currency (OCC) under a separately-approved control number, for charter applications. The current approval for this FDIC collection will expire on June 30, 2013.
A. JUSTIFICATION
1. Circumstances and Need
Section 5 of the FDI Act (12 U.S.C. 1815) provides that any depository institution engaged in the business of receiving deposits other than trust funds, upon application and examination by the FDIC and approval by its Board of Directors, may become an insured depository institution. Before approving the application, the Act requires the FDIC Board of Directors to consider certain factors which are listed in Section 6 of the Act (12 U.S.C. 1816). These factors include: the financial history and condition of the depository institution, the adequacy of its capital structure, its future earnings prospects, the general character and fitness of its management, the risk it presents to the FDIC Insurance Fund, the convenience and needs of the community to be served, and the consistency of its corporate powers.
2. Use of Information Collected
The information is used by the FDIC as a basis for analyzing the proposal and evaluating the seven statutory factors in order to determine whether the applicant will qualify for Federal deposit insurance.
3. Use of Technology/Obstacles to Reducing Burden
Respondents are free to use whatever methods are the least burdensome to them for preparing the application for deposit insurance.
4. Efforts to Identify Duplication
None of the information collected on the form is available elsewhere.
5. Minimizing the Burden on Small Depository Institutions
All proposed depository institutions must follow the same application procedures. The application is designed to collect only the minimum amount of information necessary for the FDIC to assess the merits of each case. The form is periodically reviewed to ensure a continuing need for the information collected.
6. Consequences of Less Frequent Collections
The information is collected only if a proposed bank or savings association applies for Federal deposit insurance.
7. Special Circumstances
There are no special circumstances.
8. Consultation with Persons Outside the FDIC
A “first” Federal Register notice seeking comment was published on March 19, 2013 (78 FR 16853). The FDIC received no comments.
9. Payment or Gift to Respondents
There are no payments or gifts to respondents.
10. Confidentiality
All information in the application is available for public review unless it qualifies for exemption under the provisions of the Freedom of Information Act (5 U.S.C. 552). The form advises applicants about the policy of making the information publicly available and that the applicant is responsible for identifying information it deems confidential. The FDIC makes the final decision, pursuant to the FOIA, on what information will be released to the public.
11. Information of a Sensitive Nature
No information of a sensitive nature is required.
12. Estimate of Annual Burden
Annual number of respondents: 143
Hours to prepare an application: 125
Annual burden hours: 143 x 125 = 17,875
Average hourly rate: $40
Total annual cost: $715,000
13. Capital, Start-up, Operating, and Maintenance Cost Burden
There are no capital, start-up, operating, or maintenance costs.
14. Estimated Annual Cost to Federal Government
Annual number of respondents: 143
Hours to process an application: 360
Average hourly rate: $45
Total annual cost to FDIC: 143 x 360 x $45 = $2,316,600
15. Reason for change in Burden
The change in estimated annual burden, from 27,125 hours to 17,875, is an adjustment of -9,250 hours due to a significant decline in the number of applications.
16. Publication
The information collected is not published.
17. Display of Expiration Date
No display exceptions are requested.
18. Exceptions to Certification
There are no exceptions to the certification.
| File Type | application/msword |
| File Title | SUPPORTING STATEMENT |
| Author | FDIC |
| Last Modified By | Gregorie, Leneta G. |
| File Modified | 2013-06-04 |
| File Created | 2013-06-04 |