SUPPORTING STATEMENT
INTERAGENCY BIOGRAPHICAL AND FINANCIAL REPORT
(OMB No. 3064-0006)
INTRODUCTION
The Federal Deposit Insurance Corporation (FDIC) is requesting a three-year renewal of the Interagency Biographical and Financial Report (OMB. No. 3064-0006). The current clearance for the collection expires on April 30, 2017. There is no change in the method or substance of the collection.
The report is submitted to the FDIC by: (1) each individual director, officer or individual or group of shareholders acting in concert that will own or control 10% or more, of a proposed or operating depository institution applying for FDIC deposit insurance; (2) a person proposing to acquire control of an insured state nonmember bank or state savings association (FDIC-supervised institution); (3) each proposed new director or proposed new chief executive officer of an FDIC-supervised institution which has undergone a change in control within the preceding twelve months; and (4) by each proposed new director or senior executive officer of an FDIC-supervised institution that is not in compliance with the applicable capital requirements or is otherwise in a troubled condition. The information is used by the FDIC to make an evaluation of the general character and financial condition of individuals who will be involved in the management or control of financial institutions, as required by statute. In order to lessen the burden on applicants, the FDIC cooperates with the other federal banking agencies to the maximum extent possible in processing the various applications.
A. JUSTIFICATION
Circumstances and Need
Before approving the application of a depository institution for Federal deposit insurance, section 5 of the Federal Deposit Insurance (FDI) Act (12 U.S.C. 1815(a)) requires the Board of Directors of the FDIC to give consideration to the factors enumerated in section 6 of the Act, including the general character of the bank’s management. Also, section 7(j)(6) of the FDI Act (12 U.S.C. 1817(j)) requires that any person proposing to acquire control of an FDIC-supervised institution must file with the FDIC information pertaining to that person’s personal history, business background, assets, liabilities, etc. The form is designed to collect financial information concerning the assets, liabilities and net worth of the subject individual, and biographical information pertaining to the individual’s education, the nature of civil and criminal proceedings that the individual may have been involved with, and the individual’s present and past employment.
Section 32 of the FDI Act (12 U.S.C. 183li), provides that the FDIC may disapprove an individual’s service as a director or a senior executive officer of certain FDIC-supervised institutions if upon assessing the individual’s competence, experience, character, and integrity it is determined that the individual’s service would not be in the best interest of the depositors of the bank or the public. The Interagency Biographical and Financial Report is used as a supplement to the Interagency Notice of Change in Director or Senior Executive Officer form to collect information relevant to assessment of the individual’s competence, experience, character and integrity.
Use of Information Collected
The information is used by the FDIC for analyzing the financial condition and assessing the general character of individuals wishing to serve as directors of proposed or operating depository institutions applying for deposit insurance; persons proposing to acquire control of an FDIC-supervised institution; or individuals proposed to serve as directors or senior executive officers of certain FDIC-supervised institutions. The FDIC’s evaluation of these individuals is required by statute.
Use of Technology to Reduce Burden
No technology is involved in the preparation of the report. The report is the personal financial and biographical statement of the submitter.
Efforts to Identify Duplication
There is no duplication of reporting. Each report is a unique personal financial and biographical statement of the individual submitter.
Minimizing the Burden on Small Banks
All prospective directors or officers associated with applications for Federal deposit insurance, and all persons associated with a change in control of an FDIC-supervised institution are subject to the same reporting requirements. Also, all individuals filing notice to serve as a director or senior executive officer of certain insured FDIC-supervised institution are subject to the same reporting requirements. The information is the minimum needed by the FDIC to determine the general character and financial condition of the submitter.
Consequence of Less Frequent Collections
The information is reported only once by the individual, the minimum consistent with the statute.
Special Circumstances
None.
Consultation with Persons Outside the FDIC
A Federal Register notice seeking public comment for a 60-day period was published on January 11, 2017 (82 FR 3315). No comments were received.
Payment or Gift to Respondents
None.
Confidentiality
The “Privacy Act Statement” on the form advises the respondent of possible uses of portions of the information. Disclosure to other parties is generally exempted under Section 552(b) of the Freedom of Information Act.
Information of a Sensitive Nature
The report requires an individual who will be involved in the management or control of financial institutions to provide sensitive information to the FDIC. This information includes Personally Identifiable Information1, including name, address, telephone number, date of birth and social security number. This information is necessary to assist the FDIC in its evaluation of the general character and financial condition of the individual.
The Systems of Records Notice associated with this collection may be viewed at the following link: https://www.fdic.gov/regulations/laws/rules/2000-4000.html#fdic200030--64--0002. The applicable Privacy Impact Assessment is available at https://www.fdic.gov/about/privacy/assessments.html.
Estimate of Annual Burden
Number of reports processed 574
Hours to process a report x 4
Total estimated annual burden hours 2,296
Cost: 2,296 hours X $132.75 per hour2 = $304,794.00
2017 Summary of Annual Burden and Internal Cost (3064-0006) |
||||||
|
Type of Burden |
Estimated Number of Respondents |
Estimated Number of Responses |
Estimated Time per Response |
Frequency of Response |
Total Annual Estimated Burden |
Interagency Biographical and Financial Report |
Reporting |
574 |
1 |
4 |
On Occasion |
2,296 |
TOTAL HOURLY BURDEN |
|
|
|
|
|
2,296 |
TOTAL INTERNAL COST |
$132.75 |
/HR |
|
|
|
$304,794.00 |
Capital, Start-up, Operating and Maintenance Costs
None.
Estimates of Annualized Cost to the Federal Government
None. The reports are processed by existing FDIC staff.
Reason for Change in Burden
There is no change in the method or substance of the collection. The 304 reduction in burden hours is a result of economic fluctuation. In particular, the number of respondents has decreased while the hours per response remain the same.
Publication
The information is not published.
Display of Expiration Date
Not applicable.
Exceptions to Certification
None.
B. STATISTICAL METHODS
Not applicable.
1 The term “Personally Identifiable Information” refers to information which can be used to distinguish or trace an individual’s identity, such as their name, social security number, biometric records, etc. alone, or when combined with other personal or identifying information which is linked or linkable to a specific individual, such as date and place of birth, mother’s maiden name, etc.
2 Total annual burden cost estimate is based on the hourly compensation estimate for Top Executives ($132.75). The estimate includes the May 2015 75th percentile hourly wage rate reported by the BLS, National Industry-Specific Occupational Employment and Wage Estimates. The reported hourly wage rate is adjusted for changes in the CPI-U between May 2015 and December 2016 (2.5 percent) and grossed up by 154.3 percent to account for non-monetary compensation as reported by the December 2016 Employer Costs for Employee Compensation Data.
| File Type | application/msword |
| File Modified | 2017-04-26 |
| File Created | 2017-04-26 |