SPST-0099 2014 Renewal APPLICATION FOR WAIVER OF PROHIBITION ON ACCEPTANCE OF BROKERED DEPOSITS BY ADEQUATELY CAPITALIZED INSURED INSTITUTIONS

SPST-0099 2014 Renewal APPLICATION FOR WAIVER OF PROHIBITION ON ACCEPTANCE OF BROKERED DEPOSITS BY ADEQUATELY CAPITALIZED INSURED INSTITUTIONS.doc

Application for Waiver of Prohibition on Acceptance of Brokered Deposits

OMB: 3064-0099

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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 collection, as captioned above. The current clearance expires on March 31, 2014.


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 January 16, 2014 (79 FR 2836). No comments were received. This collection was 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: 130

Hours to prepare an application: 6

Total annual burden hours: 780.

Average hourly rate: $42.

Total annual cost $32,760


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.


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