Subordinated Debt

Forms and Documents

Document	Type	Status	Availability
Request for Major Rule Determination - Accompanying Draft.docx	Supplementary Document	Uploaded 2014-02-10	Available
1557-NEW Sub Debt Final.doc	Supporting Statement A	Uploaded 2014-02-10	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
210312	Subordinated Debt		New

ICR Details

OMB Control No: 1557-0320	ICR Reference No: 201402-1557-003
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/OCC	Agency Tracking No:
Title: Subordinated Debt
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 02/20/2014
OIRA Conclusion Action: Approved without change	Conclusion Date: 02/28/2014
	Date Received in OIRA: 02/10/2014
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	08/31/2014	6 Months From Approved
Responses	184	0	0
Time Burden (Hours)	239	0	0
Cost Burden (Dollars)	0	0	0

---

Abstract: A key element of Basel III is stricter requirements for all regulatory capital instruments, including subordinated debt instruments. Subordinated debt is an important capital instrument issued by banks, and the amendments in this interim final rule include revisions to the OCC's regulations governing subordinated debt make conforming, technical and clarifying amendments to the OCC's rules. The OCC is concerned that, absent the amendments made in this interim final rule, subordinated debt issued by national banks or federal savings associations would not have the strong safeguards crafted by OCC rules implementing Basel III. Therefore, OCC is issuing an interim final rule, which would bring its subordinated debt regulations in conformity with Basel III, which became effective for certain large banks on January 1, 2014. It is imperative that this interim final rule become effective as soon as possible, as Basel III is already in effect for those banks.

Emergency Justfication: This collection is based on the OCC’s implementation of Basel III, which was adopted by the OCC to address shortfalls in the capital rules applicable to national bank and Federal savings associations made apparent by the financial crisis. A key element of Basel III is stricter requirements for all regulatory capital instruments, including subordinated debt instruments. The rule specifically sets forth revisions to the OCC’s regulations governing subordinated debt with respect to the criteria for subordinated debt that may be counted as regulatory capital and restrictions relating to prepayment prior to maturity. The OCC is concerned that, absent the amendments made in this interim final rule, subordinated debt issued by national banks and Federal savings associations would not be subject to necessary safeguards crafted by OCC regulations implementing Basel III. Therefore, the OCC is issuing an interim final rule, which would bring its subordinated debt regulations in conformity with OCC regulations implementing Basel III, which became effective for certain large banks on January 1, 2014. It is imperative that this interim final rule become effective as soon as possible, as Basel III is already in effect for those banks. Therefore, the OCC is requesting emergency clearance.

---

Authorizing Statute(s): US Code: 12 USC 1 et seq. Name of Law: The National Bank Act
  

Citations for New Statutory Requirements: None

---

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1557-AD73	Final or interim final rulemaking	79 FR 11300	02/28/2014

---

Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

---

Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Subordinated Debt

---

ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	184	0	0	184	0	0
Annual Time Burden (Hours)	239	0	0	239	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The increase in burden is due to the addition of new reporting requirements in 12 CFR 5.47.

---

Annual Cost to Federal Government:

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

---

Common Form ICR:  No

---

On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 02/10/2014

---