[Federal Register Volume 81, Number 31 (Wednesday, February 17, 2016)]
[Notices]
[Pages 8126-8127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03201]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Information Collection
Renewal; Comment Request; Leveraged Lending
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Notice and request for comment.
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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites the general public and other Federal
agencies to take this opportunity to comment on a continuing
information collection, as required by the Paperwork Reduction Act of
1995 (PRA) (44 U.S.C. chapter 35).
In accordance with the requirements of the PRA, the OCC may not
conduct or sponsor, and the respondent is not required to respond to,
an information collection unless it displays a currently valid Office
of Management and Budget (OMB) control number.
The OCC is soliciting comment concerning the renewal of its
information collection titled, ``Leveraged Lending.''
DATES: Comments must be received by April 18, 2016.
ADDRESSES: Because paper mail in the Washington, DC area and at the OCC
is subject to delay, commenters are encouraged to submit comments by
email, if possible. Comments may be sent to: Legislative and Regulatory
Activities Division, Office of the Comptroller of the Currency,
Attention: 1557-0315, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to
(571) 465-4326 or by electronic mail to [email protected]. You may
personally inspect and photocopy comments at the OCC, 400 7th Street
SW., Washington, DC 20219. For security reasons, the OCC requires that
visitors make an appointment to inspect comments. You may do so by
calling (202) 649-6700 or, for persons who are deaf or hard of hearing,
TTY, (202) 649-5597. Upon arrival, visitors will be required to present
valid government-issued photo identification and submit to security
screening in order to inspect and photocopy comments.
All comments received, including attachments and other supporting
materials, are part of the public record and subject to public
disclosure. Do not include any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer,
(202) 649-5490 or, for persons who are deaf or hard of hearing, TTY,
(202) 649-5597, Legislative and Regulatory Activities Division, Office
of the Comptroller of the Currency, 400 7th Street SW., Washington, DC
20219.
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
agencies must obtain approval from OMB for each collection of
information they conduct or sponsor. ``Collection of information'' is
defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include Agency
requests or requirements that members of the public submit reports,
keep records, or provide information to a third party. Section
3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A)) requires Federal
agencies to provide a 60-day notice in the Federal Register concerning
each proposed collection of information, including each proposed
extension of an existing collection of information, before submitting
the collection to OMB for approval. To comply with this requirement,
the OCC is publishing notice of the proposed collection of information
set forth in this document.
[[Page 8127]]
The OCC is proposing to extend OMB approval of the following
information collection:
Title: Leveraged Lending.
OMB Control No.: 1557-0315.
Description: On March 22, 2013, the agencies \1\ issued guidance
stating that they expected financial institutions \2\ to properly
evaluate and monitor underwritten credit risks in leveraged loans, to
understand the effect of changes in borrowers' enterprise values on
credit portfolio quality, and to assess the sensitivity of future
credit losses to these changes in enterprise values.\3\ In underwriting
such credits, financial institutions should ensure that borrowers are
able to repay credits when due and that borrowers have sustainable
capital structures, including bank borrowings and other debt, to
support their continued operations through economic cycles. Financial
institutions also should be able to demonstrate they understand the
risks and the potential impact of stressful events and circumstances on
borrowers' financial condition.
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\1\ OCC, Board of Governors of the Federal Reserve System, and
Federal Deposit Insurance Corporation.
\2\ For the OCC, the term ``financial institution'' or
``institution'' includes national banks, Federal savings
associations, and Federal branches and agencies supervised by the
OCC.
\3\ 78 FR 17766 (March 22, 2013).
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The final guidance stated that financial institutions should have:
(i) underwriting policies for leveraged lending, including stress-
testing procedures for leveraged credits; (ii) risk management
policies, including stress-testing procedures for pipeline exposures;
and, (iii) policies and procedures for incorporating the results of
leveraged credit and pipeline stress tests into the firm's overall
stress-testing framework.
Respondents are financial institutions with leveraged lending
activities as defined in the guidance.
Title: Guidance on Leveraged Lending.
OMB Control No.: 1557-0315.
Frequency of Response: Annual.
Affected Public: Financial institutions with leveraged lending.
Burden Estimates:
Estimated number of respondents: 29.
Estimated total annual burden: 39,162 hours to build; 49,462 hours
for ongoing use.
Total estimated annual burden: 88,624 hours.
Comments submitted in response to this notice will be summarized
and included in the submission to OMB. Comments are requested on:
(a) Whether the information collections are necessary for the
proper performance of the OCC's functions, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimates of the burden of the
information collections, including the validity of the methodology and
assumptions used;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of information collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or startup costs and costs of operation,
maintenance, and purchase of services to provide information.
Dated: February 11, 2016.
Mary Hoyle Gottlieb,
Regulatory Specialist, Office of the Comptroller of the Currency.
[FR Doc. 2016-03201 Filed 2-16-16; 8:45 am]
BILLING CODE 4810-33-P