Overview
Title
Agency Information Collection Activities: Proposed Collection Renewal; Comment Request
Agencies
ELI5 AI
The FDIC is asking people if they should keep using some forms and rules they have for banks. They want to know if these rules are still helpful, and people can tell them what they think by sending a message by April 19, 2021.
Summary AI
The Federal Deposit Insurance Corporation (FDIC) is asking the public and other federal agencies to comment on renewing some paperwork processes. This request is part of their duties under a law called the Paperwork Reduction Act of 1995. They are looking at seven specific areas, such as rules for municipal securities dealers and foreign banks, and they want to know if these processes are still effective and have real-world uses. People can send in their comments via the FDIC website, email, or regular mail by April 19, 2021.
Abstract
The FDIC, as part of its obligations under the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to take this opportunity to comment on the renewal of the existing information collections described below (OMB Control No. 3064-0022; -0027; -0103; -0114; -0115; -0163).
Keywords AI
Sources
AnalysisAI
The recent notice from the Federal Deposit Insurance Corporation (FDIC) published in the Federal Register highlights an initiative to extend certain information collections as part of its commitment to the Paperwork Reduction Act of 1995. With a cut-off date for public comments set for April 19, 2021, this request emphasizes the importance of public opinion in assessing the effectiveness of existing processes employed by the FDIC. The initiative covers several key areas, including the operations of municipal securities dealers, requests for deregistration, and regulations related to foreign banks, among others.
General Summary
The FDIC is seeking input from both the general public and other federal bodies on the renewal of seven specific information collections. These collections carry unique regulatory functions, from maintaining transparency and accountability of municipal securities to ensuring state nonmember banks comply with federal real estate appraisals standards. By requesting feedback on their continued relevance and utility, the FDIC aims to fine-tune its regulatory oversight in a manner that aligns with contemporary banking and financial practices.
Significant Issues or Concerns
Several issues arise with this document which may hinder stakeholders' ability to provide substantial feedback. Firstly, the document lacks clarity regarding the necessity of each specific information collection. This absence makes it challenging for stakeholders to gauge the practical relevance of each renewal. Furthermore, the document is laden with technical jargon such as 'ISDA Protocol' and 'GSIBs', terms that are not explained within the text, potentially alienating those not well-versed in financial legislation.
Additionally, while the document outlines estimated burden hours for each collection, it doesn't provide any comparative context. This omission makes it difficult to determine if the burden is justified or if it requires optimization.
Public Impact
The public stands to be impacted by these collections through improved regulatory oversight ensuring that banking practices align with consumer protection principles and financial stability. Properly regulated financial practices foster trust and confidence in financial institutions, benefitting the broader economy.
Impact on Specific Stakeholders
Specific subsets of stakeholders, such as state nonmember banks, municipal securities dealers, and foreign banks with U.S. operations, are most directly impacted by this document. For these entities, the process of compliance with FDIC regulations represents both a resource commitment and a method to ensure their operations meet federal standards. However, any undue burden stemming from these regulations could divert essential resources from enhancing customer service or other operational areas.
Overall, while such a document plays a critical role in maintaining financial system integrity, the FDIC must address the communication shortcomings identified to facilitate more effective stakeholder engagement and contributor feedback. By clarifying its requirements and contextualizing its assumptions, the FDIC could refine its processes to better meet the needs of all stakeholders involved.
Issues
• The document lacks a clear explanation of the reasons for renewing each specific information collection, which could help stakeholders understand the necessity of each renewal.
• The summary and individual collection descriptions could be more concise, presenting key information succinctly to enhance readability.
• The document uses technical terms and references (e.g., 'ISDA Protocol', 'GSIBs', 'QFCs') without providing explanations or definitions, which could be confusing for readers not familiar with these terms.
• The burden estimates are presented without context or benchmark comparisons, making it difficult to assess whether these burdens are reasonable or excessive.
• The Request for Comment section could benefit from more explicit guidance on how respondents might provide feedback on specific collections or estimates, possibly improving the quality of feedback received.