SPST-0153 Regulatory Capital Rules (2020) - ESLR IFR

SUPPORTING STATEMENT
REGULATORY CAPITAL RULES
(OMB No. 3064-0153)
INTRODUCTION
This submission is being made in connection with an interim final rule published in the Federal
Register with the Office of the Comptroller of the Currency (OCC) and the Board of Governors
of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation 1 (FDIC)
(collectively, the agencies). In light of recent disruptions in economic conditions caused by the
coronavirus disease 2019 and strains in U.S. financial markets, the agencies issued an interim
final rule that temporarily revises the supplementary leverage ratio calculation for depository
institutions. Under the interim final rule, any depository institution subsidiary of a U.S. global
systemically important bank holding company or any depository institution subject to Category
II or Category III capital standards may elect to exclude temporarily U.S. Treasury securities and
deposits at Federal Reserve Banks from the supplementary leverage ratio denominator.
Additionally, under this interim final rule, any depository institution making this election must
request approval from its primary Federal banking regulator prior to making certain capital
distributions so long as the exclusion is in effect. The interim final rule is effective as June 1,
2020 and will remain in effect through March 31, 2021. The agencies adopted this interim final
rule to allow depository institutions that elect to opt into this treatment additional flexibility to
act as financial intermediaries during this period of financial disruption.
The interim final rule revises the FDIC’s regulatory capital rule found at 12 C.F.R. part 324.
State nonmember banks and state savings associations, when calculating on-balance sheet assets
as of each day of a reporting quarter for purposes of determining the state nonmember bank’s or
state savings association’s total leverage exposure, may exclude the balance sheet carrying value
of U.S. Treasury securities and funds on deposit at a Federal Reserve Bank. Before applying this
relief, state nonmember banks and state savings associations must first notify the FDIC.
During the calendar quarter beginning on July 1, 2020, and until March 31, 2021, no state
nonmember bank or state savings association that has opted in to this relief may make a
distribution, or create an obligation to make such a distribution, without prior FDIC approval.
The interim final rule results in an 84-hour increase in hourly burden in the FDIC’s capital rule
information collection (3065-0153) which expires on December 31, 2022.
A.

JUSTIFICATION
1.

Circumstances and Need
In June 2016, the Financial Accounting Standards Board (FASB) issued
Accounting Standards Update (ASU) No. 2016-13, Topic 326, Financial

1

Regulatory Capital Rule: Temporary Exclusion of U.S. Treasury Securities and Deposits at Federal Reserve Banks
from the Supplementary Leverage Ratio for Depository Institutions, 85 FR 32980 (Jun. 1, 2020). The FDIC issued
the interim final rule under its authorities under Sections 12 U.S.C. 1828 and 1831o of the Federal Deposit Insurance
Act.

Instruments—Credit Losses, 2 which revises the accounting for credit losses under
U.S. generally accepted accounting principles (U.S. GAAP). ASU No. 2016-13
introduces CECL and the term, purchased credit deteriorated assets, which
replaces the term, purchased credit-impaired assets, and modifies the treatment of
credit losses on available-for-sale debt securities.
In February 2019, the agencies adopted a final rule titled, “Regulatory Capital
Rule: Implementation and Transition of the Current Expected Credit Losses
Methodology for Allowances and Related Adjustments to the Regulatory Capital
Rule and Conforming Amendments to Other Regulations” (CECL). 3 CECL
revised the agencies’ regulatory capital rules to identify which credit loss
allowances under the new accounting standard are eligible for inclusion in
regulatory capital and to provide banking organizations the option to phase in the
effect on regulatory capital that may result from the adoption of the new
accounting standard. CECL amended certain regulatory disclosure requirements
to reflect changes to U.S. GAAP.
The FDIC’s capital rule at 12 C.F.R. part 324 4 contains disclosure and
recordkeeping requirements associated with minimum capital requirements and
overall capital adequacy standards for insured state nonmember banks, state
savings associations, and certain subsidiaries of those entities. The data is used
by the FDIC to evaluate capital before approving various applications by insured
depository institutions, to evaluate capital as an essential component in
determining safety and soundness, and to determine whether an institution is
subject to prompt corrective action provisions.
In particular, the capital rule (1) contains a common equity tier 1 minimum capital
requirement, a minimum tier 1 capital requirement, and, for banking organizations
subject to the advanced approaches capital rules, a supplementary leverage ratio
that incorporates a broad set of exposures in the denominator measure; (2) places
limits on a banking organization’s capital distributions and certain discretionary
bonus payments if the banking organization does not hold a specified amount of
common equity tier 1 capital in addition to the amount necessary to meet its
minimum risk-based capital requirements; (3) contains conservative standards for
including an instrument in regulatory capital; (4) provides for calculating riskweighted assets to enhance risk sensitivity and address weaknesses identified over
recent years; (5) includes alternatives to credit ratings, consistent with section
939A of the Dodd-Frank Act; (6) includes methodologies for determining risk2

ASU No. 2016-13 introduces ASC Topic 326 that covers measurement of credit losses on financial instruments
and includes three subtopics: (i) Subtopic 10 Financial Instruments—Credit Losses—Overall; (ii) Subtopic 20:
Financial Instruments—Credit Losses—Measured at Amortized Cost; and (iii) Subtopic 30: Financial Instruments—
Credit Losses—Available-for-Sale Debt Securities.
3
“Regulatory Capital Rule: Implementation and Transition of the Current Expected Credit Losses Methodology for
Allowances and Related Adjustments to the Regulatory Capital Rule and Conforming Amendments to Other
Regulations,” 84 FR 11879 (Mar. 29, 2019).
4
In 2014, the FDIC revised its capital rule in accordance with Section 171 of the Dodd-Frank Act which requires the
agencies to establish minimum risk-based and leverage capital requirements.

2

weighted assets for residential mortgages, securitization exposures, and equity
exposures; (7) contains disclosure requirements that apply to top-tier banking
organizations domiciled in the United States with $50 billion or more in total
assets, including disclosures related to regulatory capital instruments; (8) includes
advanced approaches risk-based capital rules consistent with Basel III and section
939A and section 171 of the Dodd-Frank Act; and (9) applies the market risk
capital rules to state savings associations.
Under CECL, banking organizations subject to the disclosure requirements in
section 63 of the capital rules are required to update their disclosures to reflect the
adoption of CECL. For example, such banking organizations are required to
disclose allowance for credit losses instead of allowance for loan and lease losses
after the CECL adoption. For advanced approaches banking organizations, the
agencies adopted similar revisions to Tables 2, 3, and 5 in section 173 of the
capital rules to reflect the adoption of CECL. In addition, the agencies revised
those tables for electing advanced approaches banking organizations to disclose
two sets of regulatory capital ratios. One set reflects the banking organization’s
capital ratios with the CECL transition provision and the other set reflects the
banking organization’s capital ratios on a fully phased-in basis.
The FDIC’s capital rule at 12 C.F.R. part 324 requires a U.S. intermediate holding
company subject to Category III standards to maintain a minimum supplementary
leverage ratio of 3 percent given its size and risk profile.
Interim Final Rulemaking
As stated above, the interim final rule introduces a new notice opt-in requirement
and a requirement for prior approval for distributions. State nonmember banks
and state savings associations, when calculating on-balance sheet assets as of each
day of a reporting quarter for purposes of determining the state nonmember
bank’s or state savings association’s total leverage exposure, may exclude the
balance sheet carrying value of U.S. Treasury securities and funds on deposit at a
Federal Reserve Bank. Before applying this relief, state nonmember banks and
state savings associations must first notify the FDIC.
2.

Use of the Information Collected
The FDIC uses the data collected under the rule to fulfill its statutory obligations
to adopt a risk-based capital requirement, determine whether an institution has
elected to use the CECL transition provision, and assess the adequacy of a
qualifying bank’s risk-based capital. The specific information collection
requirements are as follows:

3

Minimum Regulatory Capital Ratios
Section _.3(d) of the agencies’ capital rules provide for termination and close-out
netting across multiple types of transactions or agreements if the bank obtains a
written legal opinion verifying the validity and enforceability of the agreement
under certain circumstances and maintains sufficient written documentation of
this legal review.
Section _.22(h)(2)(iii)(A) allows the use of a conservative estimate of the amount
of a bank’s investment in the capital of unconsolidated financial institutions held
through the index security with prior approval by the appropriate agency.
Standardized Approach
Section _.35(b)(3)(i)(A) of the agencies’ capital rules require, for a cleared
transaction with a qualified central counterparty (QCCP), that a client bank apply
a risk weight of 2 percent, provided that the collateral posted by the bank to the
QCCP is subject to certain arrangements and the client bank has conducted a
sufficient legal review (and maintains sufficient written documentation of the
legal review) to conclude with a well-founded basis that the arrangements, in the
event of a legal challenge, would be found to be legal, valid, binding and
enforceable under the law of the relevant jurisdictions.
Section _.37(c)(4)(i)(E) requires that a bank have policies and procedures
describing how it determines the period of significant financial stress used to
calculate its own internal estimates for haircuts and be able to provide empirical
support for the period used.
Section _.41(b)(3) allows for synthetic securitizations a bank’s recognition, for
risk-based capital purposes, of a credit risk mitigant to hedge underlying
exposures if certain conditions are met, including the bank’s having obtained a
well-reasoned opinion from legal counsel that confirms the enforceability of the
credit risk mitigant in all relevant jurisdictions. In addition, section _.41(c)(2)(i)
requires that a bank support a demonstration of its comprehensive understanding
of a securitization exposure by conducting and documenting an analysis of the
risk characteristics of each securitization exposure prior to its acquisition, taking
into account a number of specified considerations. Section .41(c)(2)(ii) requires
on an on-going basis (no less frequently than quarterly), a bank must evaluate,
review, and update as appropriate the analysis required under this section for each
securitization exposure.
Section _.42(e)(2) addresses risk-weighted assets for securitization exposures and
requires that a bank publicly disclose that is has provided implicit support to the
securitization and the risk-based capital impact to the bank of providing such
implicit support.

4

Section _.62(a) specifies a quarterly frequency for the disclosure of information in
the applicable tables set out in section _.63 and, if a significant change occurs,
such that the most recent reported amounts are no longer reflective of the bank’s
capital adequacy and risk profile, it also would require the bank to disclose as
soon as practicable thereafter, a brief discussion of the change and its likely
impact. This section would allow for annual disclosure of qualitative information
that typically does not change each quarter, provided that any significant changes
are disclosed in the interim. Section _.62(b) requires that a bank have a formal
disclosure policy approved by the board of directors that addresses its approach
for determining the disclosures it makes. The policy is required to address the
associated internal controls and disclosure controls and procedures. Section
.62(c) requires a bank with total consolidated assets of $50 billion or more that is
not an advanced approaches bank, if it concludes that specific commercial or
financial information required to be disclosed under section _.62 is exempt from
disclosure by the agency under the Freedom of Information Act (5 U.S.C. 552), to
disclose more general information about the subject matter of the requirement and
the reason the specific items of information have not been disclosed.
Section _.63(a) requires certain disclosures for each of the last three years
beginning on the effective date of the rule for banks with total consolidated assets
of $50 billion or more that are not advanced approaches banks, including
qualitative and quantitative disclosures related to capital structure, capital
adequacy, capital conservation buffer, general credit risk, counterparty credit riskrelated exposures, credit risk mitigation, securitizations, certain equities, and
interest rate risk for non-trading activities. In addition, section 63(b) requires
quarterly disclosure of a bank’s common equity tier 1 capital, additional tier 1
capital, tier 2 capital, tier 1 and total capital ratios, including the regulatory capital
elements and all the regulatory adjustments and deductions needed to calculate
the numerator of such ratios; total risk-weighted assets, including the different
regulatory adjustments and deductions needed to calculate total risk-weighted
assets; regulatory capital ratios during any transition periods, including a
description of all the regulatory capital elements and all regulatory adjustments
and deductions needed to calculate the numerator and denominator of each capital
ratio during any transition period; and a reconciliation of regulatory capital
elements as they relate to its balance sheet in any audited consolidated financial
statements.
Tables 1 through 10 to section _.63 set forth qualitative and quantitative
disclosure requirements for scope of application, capital structure, capital
adequacy, capital conservation buffer, credit risk, counterparty credit risk-related
exposures, credit risk mitigation, securitizations, equities not subject to Subpart F
of the rule, and interest rate risk for non-trading activities.

5

Advanced Approaches 5
Sections _.121 and _.122 require that a covered institution adopt a written
implementation plan that addresses how it will comply with the framework’s
qualification requirements, including incorporation of a comprehensive and sound
planning and governance process to oversee the implementation efforts. The
institution must also develop processes for assessing capital adequacy in relation
to an organization’s risk profile. It must have in place internal risk rating and
segmentation systems for wholesale and retail risk exposures, including
comprehensive risk parameter quantification processes and processes for annual
reviews and analyses of reference data to determine its relevance. It must
document its process for identifying, measuring, monitoring, controlling, and
internally reporting operational risk; verify the accurate and timely reporting of
risk-based capital requirements; and monitor, validate, and refine its advanced
systems.
Section _.123 requires an institution to notify its Federal supervisor of changes to
advance systems and requires submission of a plan for returning to compliance
with qualification requirements.
Section _.124 requires an institution to notify its primary Federal supervisor when
it makes a material change to its advanced systems and to develop an
implementation plan after any mergers.
Section _.132(b)(2)(iii)(A) addresses counterparty credit risk of repo-style
transactions, eligible margin loans, and OTC derivative contracts and allows a
bank, with the FDIC’s prior written approval, to calculate haircuts (Hs and Hfx)
using its own internal estimates of the volatilities of market prices and foreign
exchange rates. To receive FDIC approval to use its own internal estimates, a
bank must satisfy the minimum quantitative standards outlined in the section.
Section _.132(b)(3) provides that with the prior written approval of the agency, an
institution may estimate EAD for a netting set using a VaR model that meets
certain requirements.
Section _.132(d)(1) allows the use of the internal models methodology to
determine EAD for counterparty credit risk for derivative contracts with prior
written approval. Section .132(d)(1)(iii) allows the use of the internal models
methodology for derivative contracts, eligible margin loans, and repo-style
transactions subject to a qualifying cross-product netting agreement with prior
written approval. Section _.132(d)(2)(iv) provides that for risk-weighted assets
using the internal models methodology (IMM), a bank uses an internal model to
estimate the expected exposure (EE) for a netting set and then calculates EAD
based on that EE. A bank must calculate two EEs and two EADs (one stressed
5

The FDIC’s capital rule at 12 C.F.R. part 324 requires a U.S. intermediate holding company subject to Category III
standards to maintain a minimum supplementary leverage ratio of 3 percent given its size and risk profile.

6

and one unstressed) for each netting as outlined in this section. Section
_.132(d)(3)(vi) requires that a bank, in order to obtain FDIC approval to calculate
the distributions of exposures upon which the EAD calculation is based, must
demonstrate to the satisfaction of the FDIC that it has been using for at least one
year an internal model that broadly meets the minimum standards, with which the
bank must maintain compliance. In addition, the bank must have procedures to
identify, monitor, and control wrong-way risk throughout the life of an exposure.
The procedures must include stress testing and scenario analysis. Section
_.132(d)(3)(viii) requires that, when estimating model parameters based on a
stress period, the bank must use at least three years of historical data that include a
period of stress to the credit default spreads of the bank’s counterparties. The
bank must review the data set and update the data as necessary, particularly for
any material changes in its counterparties. The bank must demonstrate at least
quarterly that the stress period coincides with increased CDS or other credit
spreads of the institution’s counterparties. The bank must have procedures to
evaluate the effectiveness of its stress calibration that include a process for using
benchmark portfolios that are vulnerable to the same risk factors as the
institution’s portfolio. The FDIC may require the institution to modify its stress
calibration to better reflect actual historic losses of the portfolio. Section
_.132(d)(3)(ix) requires that a bank subject its internal model to an initial
validation and annual model review process. The model review should consider
whether the inputs and risk factors, as well as the model outputs, are appropriate.
As part of the model review process, the institution must have a backtesting
program for its model that includes a process by which unacceptable model
performance will be determined and remedied. Section _.132(d)(3)(x) requires
that a bank must have policies for the measurement, management and control of
collateral and margin amounts. Section _.132(d)(3)(xi) requires that a bank have
a comprehensive stress testing program that captures all credit exposures to
counterparties, and incorporates stress testing of principal market risk factors and
creditworthiness of counterparties.
Section _.141 addresses operational criteria for recognizing the transfer of risk.
Section _.141(b)(3) requires a well-reasoned legal opinion confirming the
enforceability of the credit risk mitigant in all relevant jurisdictions. Section
_.141(c)(1) and .141(c)(2)(i) require an advanced approaches bank to demonstrate
its comprehensive understanding of a securitization exposure for each
securitization exposure by conducting an analysis of the risk characteristics of a
securitization exposure prior to acquiring the exposure and document such
analysis within three business days after acquiring the exposure. Section
_.141(c)(2)(ii) requires that, on an ongoing basis (no less frequently than
quarterly), a bank must evaluate, review, and update as appropriate the analysis
required under this section for each securitization exposure.
Section _.142, which outlines the capital treatment for securitization exposures,
requires that a bank publicly disclose that it has provided implicit support to the
securitization and the regulatory capital impact to the bank of providing such
implicit support.
7

Section _.153 provides that a bank must receive prior written approval from its
primary Federal supervisor before it can use the Internal Models Approach.
Section 172 specifies that each consolidated bank must publicly disclose its total
and tier 1 risk-based capital ratios and their components.
Section 173 requires a bank that is an advanced approaches bank to make the
qualitative and quantitative disclosures described in Tables 1 to 12. The bank
must make these disclosures publicly available for each of the last three years
(that is, twelve quarters) or such shorter period beginning on the effective date of
this subpart E. Table 4 to section _.173 addresses disclosures related to capital
conservation and countercyclical buffers; Table 5 to section _.173 addresses
general disclosures related to credit risk; Table 9 to section _.173 addresses
disclosures related to securitizations; and Table 12 to section _.173 addresses
disclosures related interest rate risk for non-trading activities.
Banking organizations subject to the disclosure requirements in section 63 of the
capital rules are required to update their disclosures to reflect the adoption of
CECL. For example, such banking organizations are required to disclose
allowance for credit losses instead of allowance for loan and lease losses after
CECL adoption. For advanced approaches banking organizations, the agencies
revised Tables 2, 3, and 5 in section 173 of the capital rules to reflect the adoption
of CECL. In addition, the agencies revised those tables for electing advanced
approaches banking organizations to disclose two sets of regulatory capital ratios.
One set reflects such banking organization’s capital ratios with the CECL
transition provision and the other set reflects the banking organization’s capital
ratios on a fully phased-in basis.
Section _.304 provides that state nonmember banks and state savings associations,
when calculating on-balance sheet assets as of each day of a reporting quarter for
purposes of determining the state nonmember bank’s or state savings
association’s total leverage exposure, may exclude the balance sheet carrying
value of U.S. Treasury securities and funds on deposit at a Federal Reserve Bank.
Before applying this relief, state nonmember banks and state savings associations
must first notify the FDIC. During the calendar quarter beginning on July 1,
2020, and until March 31, 2021, no state nonmember bank or state savings
association that has opted in to this relief may make a distribution, or create an
obligation to make such a distribution, without prior FDIC approval.
3.

Use of Technology to Reduce Burden
The agencies use information technology to reduce burden on institutions and
decrease costs to insured depository institutions and the agencies. Insured
depository institutions are required to store data in an electronic format allowing

8

timely retrieval for analysis, reporting and disclosure purposes. Institutions are
also encouraged to provide information for public disclosure on their websites.
4.

Efforts to Identify Duplication
The information collected is institution-specific. The information is used to
determine a bank’s election to use the CECL transition provision, and fully assess
the adequacy of a qualifying bank’s risk-based capital. Substantially all of the
information collected is not otherwise available.

5.

Minimizing the Burden on Small Entities
This collection does not have a significant impact on a substantial number of
small entities. In particular, according to Call Report data as of December 31,
2018, there were 3,489 FDIC-supervised institutions. Only one of these FDICsupervised institutions is affected by the regulatory capital rule and does not have
total assets of less than $600 million therefore meeting the Small Business
Administration’s definition of a “small entity.”

6.

Consequence of Less Frequent Collections
The FDIC would not be able to adequately monitor capital levels and ensure
safety and soundness in covered institutions if the information were collected less
frequently.

7.

Special Circumstances
The rule requires banks to maintain data used to estimate risk parameters. For
wholesale exposures, default data must be maintained for at least 5 years, loss
severity data must be maintained for at least 7 years, and exposure amount data
must be maintained for at least 7 years. Retail segment exposure default, loss
severity and exposure amount data must be maintained for at least five years.
In addition to the requirements for a minimum number of years that data must be
maintained, the default, loss severity, and exposure amount data must include
periods of economic downturn conditions, or the bank must adjust its estimates of
risk parameters to compensate for the lack of data from such periods.
Maintenance of data for these periods is necessary for banks to conduct adequate
statistical analysis to support the associated risk parameters used to calculate the
risk-based capital requirement.

9

8.

Consultation with Persons Outside the FDIC
On June 1, 2020, the agencies published the interim final rule in the Federal
Register (85 FR 32980). The comments period on the interim final rule will close
on July 16, 2020. Any comments received during the comment period that relate
to the Paperwork Reduction Act will be reflected in the corresponding 60-day and
30-day notices following this emergency clearance request.

9.

Payment or Gift to Respondents
None.

10.

Confidentiality
Any information deemed to be of a confidential nature would be exempt from
public disclosure in accordance with the provisions of the Freedom of Information
Act (5 U.S.C. 552).

11.

Information of a Sensitive Nature
This collection contains no sensitive information.

10

12.

Burden Estimates

Summary of Annual Burden and Internal Cost
Estimated
Estimated
BASEL III Advanced Approaches:
Type of Burden
Number of
Time per
RECORDKEEPING, DISCLOSURE and
Respondents
Response
REPORTING
Implementation plan -- Section _.121(b): Ongoing
Recordkeeping
1
330.00
Documentation of advanced systems -- Section
_.122(j): Ongoing
Systems maintenance -- Sections _.122(a),
_123(a), _.124(a): Ongoing
Supervisory approvals -- Sections_.122(d)-(h),
_.132(b)(3), _.132(d)(1), _.132(d)(1)(iii): Ongoing
Control, oversight and verification of systems -Sections _.122 to _.124: Ongoing
(CCR) -- Section _.132(b)(2)(iii)(A): One-time
(CCR) -- Section _.132(b)(2)(iii)(A): Ongoing
(CCR) -- Section _.132(d)(2)(iv): One-time
(CCR) -- Section _.132(d)(2)(iv): Ongoing
(CCR) -- Section _.132(d)(3)(vi): One-time
(CCR) -- Section _.132(d)(3)(viii): One-time
(CCR) -- Section _.132(d)(3)(viii) Ongoing
(CCR) -- Section _.132(d)(3)(ix): One-time
(CCR) -- Section _.132(d)(3)(ix): Ongoing
(CCR) -- Section _.132(d)(3)(x): One-time
(CCR) -- Section _.132(d)(3)(xi): One-time
(CCR) -- Section _.132(d)(3)(xi): Ongoing
(OC) -- Section _.141(b)(3), _.141(c)(1),
_.141(c)(2)(i)-(ii), _.153:: One-time
(OC) -- Section _.141(c)(2)(i)-(ii): Ongoing

Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping
Recordkeeping

Sections _.142 and _.171: Ongoing

Disclosure

(CCB and CCYB) -- Section _.173, Table 4
(Securitization) -- Section _.173, Table 9
(IRR) -- Section_.173, Table 12: Ongoing

Disclosure

(CCB and CCYB) -- Section _.173, Table 4
(Securitization) -- Section _.173, Table 9
(IRR) -- Section _.173, Table 12: One-time
(Capital Structure) -- Section_.173, Table 2:
Ongoing
(Capital Structure) -- Section_.173, Table 2: Onetime
(Capital Adequacy) -- Section_.173, Table 3:
Ongoing
(Capital Adequacy) -- Section _.173, Table 3:
One-time
(CR) --Section_.173, Table 5: Ongoing
(CR) -- Section _.173, Table 5: One-time
Section_.304 - Opt-In Relief and Related FDIC
Approval: Ongoing

On Occasion

Total Annual
Estimated
Burden
330

Frequency of
Response

1

19.00

On Occasion

19

1

27.90

On Occasion

28

1

16.82

On Occasion

17

1
1
1
1
1
1

11.05
80.00
16.00
80.00
40.00
80.00

On Occasion
On Occasion
On Occasion
On Occasion
On Occasion
On Occasion

11
80
16
80
40
80

1

80.00

On Occasion

80

1
1
1
1
1
1

10.00
40.00
40.00
20.00
40.00
40.00

Quarterly
On Occasion
On Occasion
On Occasion
On Occasion
On Occasion

40
40
40
20
40
40

1

40.00

On Occasion

40

1

10.00

Quarterly

40

5.78

On Occasion

6

1

25.00

Quarterly

100

1

200.00

On Occasion

200

1

2.00

Quarterly

8

1

16.00

On Occasion

16

1

2.00

Quarterly

8

1

16.00

On Occasion

16

1

12.00

Quarterly

48

1

96.00

96

7

6.00

On Occasion
On Occasion
(twice)

1

Disclosure
Disclosure
Disclosure
Disclosure
Disclosure
Disclosure
Disclosure
Reporting

84

SUBTOTAL: One-time
Recordkeeping and Disclosure

788

SUBTOTAL: Ongoing
Recordkeeping, Disclosure, and Reporting

875

TOTAL RECORDKEEPING, DISCLOSURE, and
REPORTING

1,663

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Minimum Regulatory Capital Ratios:
RECORDKEEPING
(CCR Operational Requirements) -- Sections
_.3(d) and_.22(h)(2)(iii)(A): Ongoing

Type of Burden

Estimated
Number of
Respondents

Estimated
Time per
Response

Frequency of
Response

Total Annual
Estimated
Burden

Recordkeeping

3,489

16.00

On Occasion

55,824

SUBTOTAL: One-time Recordkeeping

0

SUBTOTAL: Ongoing Recordkeeping

55,824

TOTAL RECORDKEEPING

55, 824

Type of Burden

Estimated
Number of
Respondents

Estimated
Time per
Response

Frequency of
Response

Total Annual
Estimated
Burden

(QCCP) -- Section _.35(b)(3)(i)(A): One-time

Recordkeeping

1

2.00

On Occasion

2

(QCCP) -- Section _.35(b)(3)(i)(A): Ongoing

Recordkeeping

3,489

2.00

On Occasion

6,978

(CT) -- Section _.37(c)(4)(i)(E): One-time

Recordkeeping

1

80.00

On Occasion

80

(CT) -- Section _.37(c)(4)(i)(E): Ongoing

Recordkeeping

3,489

16.00

On Occasion

55,824

(SE) -- Section _.41(b)(3) and _.41(c)(2)(i): Onetime

Recordkeeping

1
40.00

On Occasion

40

(SE) -- Section _.41(c)(2)(ii): Ongoing

Recordkeeping

3,489

2.00

On Occasion

6,978

(S.E.) -- Section _.42(e)(2),
(C.R.) Sections_.62(a),(b),& (c),
(Q&Q) Sections_.63(a) & (b): One-time

Disclosure
1

226.25

On Occasion

226

(S.E.) -- Section _.42(e)(2), (C.R.)
Sections_.62(a),(b),& (c),
(Q&Q) Sections_.63(a) & (b) and _.63 Tables:
Ongoing

Disclosure
1

131.25

Quarterly

525

Standardized Approach:
RECORDKEEPING and DISCLOSURE

SUBTOTAL: One-time
Recordkeeping and Disclosure

348

SUBTOTAL: Ongoing
Recordkeeping and Disclosure

70,305

TOTAL RECORDKEEPING and DISCLOSURE

70,653

ESTIMATED COST TO RESPONDENTS ASSOCIATED WITH HOURLY BURDEN
Total One-Time Burden Hours

1,136

Total Ongoing Burden Hours

127,004

TOTAL BURDEN HOURS

128,140

Total Estimated Ongoing Cost (128,056 hours * $73/hour)

$9,354,220

Annualized Cost of Internal Hourly Burden:
128,140 hours x $73 per hour 6 = $9,354,220.
6
The wage information reported by the BLS in the Specific Occupational Employment and Wage Estimates does
not include health benefits and other non-monetary benefits. According to the December 2018 Employer Cost of
Employee Compensation data compensation rates for health and other benefits are 33.7 percent of total
compensation. Additionally, the wage has been adjusted for inflation according BLS data on the Consumer Price
Index for Urban Consumers (CPI-U) so that it is contemporaneous with the non-wage compensation statistic. The
inflation rate was 3.59 percent between May 2017 and December 2018.

12

Estimated Category of Personnel Responsible
for Complying with the PRA Burden

Total Estimated
Hourly
Compensation

Estimated
Weights

Estimated Total Weighted
Labor Cost Component

Executives and Managers*

$122

0%

$0

Lawyers**

$156

0%

$0

Compliance Officer***

$63

50%

$32

IT Specialists†

$89

0%

$0

Financial Analysts††

$83

50%

$42

Clerical‡

$32

0%

$0

100%

$73

Total Estimated Weighted Average Hourly
Compensation Rate

Source: Bureau of Labor Statistics: "National Industry-Specific Occupational Employment and Wage Estimates:
Depository Credit Intermediation Sector: hourly 75th percentile wage" (May 2017), Employer Cost of Employee
Compensation (December 2018), Consumer Price Index (December 2018).
Note: The wage information reported by the BLS in the Specific Occupational Employment and Wage Estimates
does not include health benefits and other non-monetary benefits. According to the December 2018 Employer Cost
of Employee Compensation data compensation rates for health and other benefits are 33.7 percent of total
compensation. Additionally, the wage has been adjusted for inflation according BLS data on the Consumer Price
Index for Urban Consumers (CPI-U) so that it is contemporaneous with the non-wage compensation statistic. The
inflation rate was 3.59 percent between May 2017 and December 2018.
*

Occupation (SOC Code): Management Occupations (110000)

** Occupation (SOC Code): Lawyers, Judges, and Related Workers(231000)
*** Occupation (SOC Code): Compliance Officers(131041)
†

Occupation (SOC Code): Computer and Mathematical Occupations (150000)

†† Occupation (SOC Code): Financial Analyst (132051)
‡

Occupation (SOC Code): Office and Administrative Support Occupations(430000)

13.

Capital, Start-Up and Maintenance Costs
None.

14.

Estimated Annual Cost to the Federal Government
None. The reports are processed by existing FDIC staff.

15.

Reason for Change in Burden
There is an 84-hour increase in overall annual burden. This increase is attributed
to the interim final rule.

13

16.

Publication
The information is not published.

17.

Display of Expiration Date
Not applicable.

18.

Exceptions to Certification
None.

B.

STATISTICAL METHODS
Not applicable.

14