FR 2025-01424

The document from the Federal Deposit Insurance Corporation (FDIC) invites public comment on proposals to renew three sets of information collections. These proposals are part of the FDIC's obligations under the Paperwork Reduction Act of 1995. The FDIC specifically seeks feedback on renewing applications concerning banks seeking trust powers, the assessment of diversity policies and practices, and the notification requirements for computer security incidents. The comment period is open until February 21, 2025. Interested parties can submit their comments through various methods, including email, the FDIC's website, mail, or hand delivery.

General Summary

The FDIC's document outlines a request for public input on three specific sets of data collections that impact banks and other financial entities. Each collection has a distinct purpose: assisting banks in exercising trust powers, promoting diversity policies, and managing computer security incidents. This initiative is a typical part of the regulatory process where agencies seek insights and opinions from the public to ensure that regulations are effective and not overly burdensome.

Significant Issues and Concerns

One notable concern is the document's utilization of technical jargon and references to specific legal frameworks, which could be challenging for individuals unfamiliar with regulatory language. Without simplifying these terms, the document might not be accessible to those who could be most affected. Furthermore, while the document mentions changes in the estimated hours required for compliance with these collections, it fails to justify these alterations adequately, leaving readers unclear about why these changes have occurred.

Another issue arises with the document's references to various Office of Management and Budget (OMB) control numbers and form numbers. These are mentioned without context or explanation, which could confuse those unfamiliar with how these numbers are used in regulatory processes.

Additionally, the submission process for comments could be perplexing, particularly the use of www.reginfo.gov, a website that might not be well known to the general public. More guidance on how to navigate this process could help ensure broader participation from interested parties.

Impact on the Public

The document has a broad impact on both the general public and specific stakeholders. Overall, it highlights regulations that affect financial organizations and their operations. For the general public, the importance of these collections may not be immediately apparent, but they relate indirectly to the safety, fairness, and reliability of financial services.

Impact on Specific Stakeholders

For financial institutions, particularly insured state nonmember banks, the renewals of these information collections could mean continued or adjusted operational requirements. The renewal of applications for trust powers may affect banks looking to expand their services. The focus on diversity in management and business practices aims to ensure fair representation, which can have positive long-term effects in fostering inclusive work environments within financial institutions. Lastly, the computer security incident notification requirements are crucial for maintaining the security and integrity of financial services, which is increasingly important in today's digital landscape.

While these proposals may uphold important regulatory standards, stakeholders might also find them burdensome, which could lead to increased administrative work. The FDIC encourages feedback to potentially ease these burdens while maintaining their regulatory objectives. However, it remains to be seen how straightforward these changes will be for financial institutions to implement, given the complexity and specificity of requirements.