The use of a model to calculate a credit exposure, other than one approved for capital purposes, must be approved by the OCC specifically for part 32 purposes and must be approved in writing. If a national bank or Federal savings association proposes to use an internal model that has been approved by the OCC for capital purposes, the institution must provide prior written notification to the OCC prior to use of or change to the model for lending purposes.
The Office of the Comptroller of the Currency (OCC) hereby requests approval prior to October 1, 2013, for a new collection of information contained in its Lending Limits final rule (78 FR 37930 (June 25, 2013)) pursuant to the Office of Management and Budgetâs (OMB) Paperwork Reduction Act (PRA) emergency processing procedures at 5 C.F.R. § 1320.13.
The OCC has determined that (1) the collection of information within the scope of this request is needed prior to the expiration of time periods established under 5 C.F.R. § 1320.12; (2) this collection of information is essential to the mission of the OCC; and (3) the OCC cannot reasonably comply with the normal clearance procedures because an unanticipated event has occurred and the use of normal clearance procedures is reasonably likely to prevent or disrupt the collection of information.
The Lending Limits final rule included a new information collection requirement generated in response to public comment. In response to comments received, OCC clarified the model approval process in 12 C.F.R. § 32.9 to provide that a model (other than the model approved for purposes of the Advanced Measurement Approach in the capital rules) must be approved by the OCC specifically for part 32 purposes and must be approved in writing. If a national bank or Federal savings association proposes to use an internal model that has been approved by the OCC for purposes of the Advanced Measurement Approach, the institution must provide prior written notification to the OCC prior to use of the model for lending limits purposes. OCC approval is also required before substantive revisions are made to a model that is used for lending limits purposes.
The addition of this information collection at the final rule stage prevents the OCC from clearing the collection under 5 C.F.R. § 1320.11, which covers only collections of information contained in proposed rules. As noted in 5 C.F.R. § 1320.5 (c)(1), the OCC must clear the collection under 5 C.F.R. § 1320.10, which relates to information collections not contained in proposed rules or current rules. The OCC submitted the collection to OMB under 5 C.F.R. § 1320.11, and the ROCIS System accepted the submission due to a system error. There is insufficient time to obtain clearance under 5 C.F.R. § 1320.10 prior to the ruleâs October 1, 2013 effective date. Therefore the OCC is requesting emergency clearance.
The increase in burden is due to the fact that this is a new collection. The collection implements section 610 of Dodd-Frank, which provides that the definition of "loans and extenstions of credit" includes credit exposures arising from derivative transactions, among other things. The rule introduces an approval process for the model method for calculating these credit exposures. This information request seeks approval for this new approval process.
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:
(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;
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.
Lending Limits - Emergency Request Letter.pdf
1557-NEW (12 CFR 32.9 - Supporting Statement Lending Limits Final Rule) (1).docx
Credit Exposure Model - Notices and Approvals