Reporting and Recordkeeping Requirements Associated with Liquidity Coverage Ratio: Liquidity Risk Measurement, Standards, and Monitoring

Forms and Documents

Document Name	Status
1557-0323 Supporting Statement 10-13-20.docx Supporting Statement A	2020-10-14

IC Document Collections

IC ID	Document Title	Status
238373	Recordkeeping - 50.22(a)(5) - Documented methodology providing consistent treatment for determining whether eligible HQLA meets operational requirements.	Modified
213413	Reporting - Sections 50.40(b)(3)(iv) and 50.110(b)(3) - Progress Reports	Modified
213412	Reporting - Sections 50.40(b) and 50.110(b) - Liquidity Plan	Modified
213411	Recordkeeping - Sections 50.40(b) and 50.110(b) - Preparation of Liquidity Plan	Modified
213410	Reporting - Sections 50.40(a) and 50.110(a) Notification of liquidity coverage ratio shortfall	Modified
208901	Recordkeeping - Section 50.22(a)(2), (a)(5), and 50.108(b) - Written procedures to identify/monitor restrictions on transferring assets; Documentation	Modified

ICR Details

OMB Control No: 1557-0323	ICR Reference No: 202010-1557-003
Status: Received in OIRA	Previous ICR Reference No: 201911-1557-001
Agency/Subagency: TREAS/OCC	Agency Tracking No:
Title: Reporting and Recordkeeping Requirements Associated with Liquidity Coverage Ratio: Liquidity Risk Measurement, Standards, and Monitoring
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 02/11/2021

	Requested	Previously Approved
Expiration Date	36 Months From Approved	12/31/2022
Responses	260	380
Time Burden (Hours)	3,231	4,912
Cost Burden (Dollars)	0	0

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Abstract: This supporting statement is being filed in connection with a final rule issued by the OCC, the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC). The final rule implements a stable funding requirement, known as the net stable funding ratio (NSFR), for certain large banking organizations. The final rule establishes a quantitative metric, the NSFR, to measure the stability of the funding profile of certain large banking organizations and requires these banking organizations to maintain minimum amounts of stable funding to support their assets, commitments, and derivatives exposures over a one-year time horizon. The NSFR is designed to reduce the likelihood that disruptions to a banking organization’s regular sources of funding will compromise its liquidity position, promote effective liquidity risk management, and support the ability of banking organizations to provide financial intermediation to businesses and households across a range of market conditions. The NSFR supports financial stability by requiring banking organizations to fund their activities with stable sources of funding on an ongoing basis, reducing the possibility that funding shocks would substantially increase distress at individual banking organizations. The final rule applies to certain large U.S. depository institution holding companies, depository institutions, and U.S. intermediate holding companies of foreign banking organizations, each with total consolidated assets of $100 billion or more, together with certain depository institution subsidiaries. Under the final rule, the NSFR requirement increases in stringency based on risk-based measures of the top-tier covered company. U.S. depository institution holding companies and U.S. intermediate holding companies subject to the final rule are required to publicly disclose their NSFR and certain components of their NSFR every second and fourth calendar quarter for each of the two immediately preceding calendar quarters. The final rule also amends certain definitions in the agencies’ liquidity coverage ratio rule that are also applicable to the NSFR.

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

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	81 FR 35124	06/01/2016
30-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 9120	02/11/2021
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 6

IC Title	Form No.	Form Name
Reporting - Sections 50.40(a) and 50.110(a) Notification of liquidity coverage ratio shortfall
Reporting - Sections 50.40(b)(3)(iv) and 50.110(b)(3) - Progress Reports
Recordkeeping - Section 50.22(a)(2), (a)(5), and 50.108(b) - Written procedures to identify/monitor restrictions on transferring assets; Documentation
Reporting - Sections 50.40(b) and 50.110(b) - Liquidity Plan
Recordkeeping - Sections 50.40(b) and 50.110(b) - Preparation of Liquidity Plan
Recordkeeping - 50.22(a)(5) - Documented methodology providing consistent treatment for determining whether eligible HQLA meets operational requirements.

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ICR Summary of Burden

	Total Request	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	260	380	0	0	-120	0
Annual Time Burden (Hours)	3,231	4,912	0	-390	-1,291	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: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: The decrease in burden is due to the decrease in the number of affected entities.

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Annual Cost to Federal Government:

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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? No

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Common Form ICR:  No

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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: 02/11/2021

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