Liquidity Coverage Ratio: Liquidity Risk Measurement, Standards, and Monitoring (LCR)

Forms and Documents

Document Name	Status
SPST-0197 LCR (NSFR Final Rule) - 2-11-2021.pdf Supporting Statement A	2021-02-11

IC Document Collections

IC ID	Document Title	Status
245764	329.108(b) - NSFR consolidation procedures	New
230787	329.22(a)(5) Documented methodology providing consistent treatment for determining whether eligible HQLA meets operational requirements	Modified
230786	329.22(a)(2) Policies that require eligible HQLA to be under control of liquidity risk management function	Modified
230784	329.40(b)(3)(iv) and 329.110(b)(3) Weekly report of progress toward achieving compliance	Modified
230783	329.40(b) Notification that liquidity coverage ratio is less than minimum in 329.10 for 3 consecutive days or otherwise noncompliant; 329.110(b) NSFR shortfall liquidity plan	Modified
212679	329.40(b) and 329.110(b) Plan for achieving compliance	Modified
212678	329.40(a) Notification that liquidity coverage ratio is less than minimum in 329.10; 329.110(a) NSFR shortfall notification	Modified

ICR Details

OMB Control No: 3064-0197	ICR Reference No: 202102-3064-005
Status: Received in OIRA	Previous ICR Reference No: 201911-3064-010
Agency/Subagency: FDIC	Agency Tracking No: 3064-0197
Title: Liquidity Coverage Ratio: Liquidity Risk Measurement, Standards, and Monitoring (LCR)
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	01/31/2023
Responses	84	40
Time Burden (Hours)	994	497
Cost Burden (Dollars)	0	0

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Abstract: The Liquidity Coverage Ratio (LCR) rule implements a quantitative liquidity requirement and contains requirements subject to the Paperwork Reduction Act. The reporting and recordkeeping requirements are found in Sections 329.22, 329.40, 329.108, and 329.110. The requirements contained in the LCR rule are designed to promote the short-term resilience of the liquidity risk profile of large and internationally active banking organizations, thereby improving the banking sector’s ability to absorb shocks arising from financial and economic stress, and to further improve the measurement and management of liquidity risk.

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Authorizing Statute(s): US Code: 12 USC 1815 Name of Law: Federal Deposit Insurance Act
   US Code: 12 USC 1816 Name of Law: Federal Deposit Insurance Act
   US Code: 12 USC 1819 Name of Law: Federal Deposit Insurance Act
   US Code: 12 USC 1828 Name of Law: Federal Deposit Insurance Act
   US Code: 12 USC 1831p-1 Name of Law: Federal Deposit Insurance Act
   PL: Pub.L. 115 - 17 401 Name of Law: Economic Growth, Regulatory Relief, and Consumer Protection Act
   US Code: 12 USC 5412 Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act
   US Code: 12 USC 1818 Name of Law: Federal Deposit Insurance Act
   US Code: 12 USC 5365 Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act
  

Citations for New Statutory Requirements: US Code: 12 USC 5365 Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act
PL: Pub.L. 115 - 174 401 Name of Law: Economic Growth, Regulatory Relief, and Consumer Protection Act

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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: 7

IC Title	Form No.	Form Name
329.40(b) and 329.110(b) Plan for achieving compliance
329.40(b) Notification that liquidity coverage ratio is less than minimum in 329.10 for 3 consecutive days or otherwise noncompliant; 329.110(b) NSFR shortfall liquidity plan
329.40(b)(3)(iv) and 329.110(b)(3) Weekly report of progress toward achieving compliance
329.22(a)(2) Policies that require eligible HQLA to be under control of liquidity risk management function
329.40(a) Notification that liquidity coverage ratio is less than minimum in 329.10; 329.110(a) NSFR shortfall notification
329.22(a)(5) Documented methodology providing consistent treatment for determining whether eligible HQLA meets operational requirements
329.108(b) - NSFR consolidation procedures

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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	84	40	0	44	0	0
Annual Time Burden (Hours)	994	497	0	497	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 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 (together, covered companies). In particular, the final rule revises Sections 329.110 and 329.108 of the FDIC’s LCR rule.

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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]? Yes

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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