Federal Deposit Insurance Corporation (FDIC).
Notice of information collections to be submitted to OMB for review and approval under the Paperwork Reduction Act of 1995.
In accordance with requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501
Comments must be submitted on or before September 17, 2007.
Interested parties are invited to submit written comments on the collection of information entitled: Pilot Study of Small Dollar Loan Programs. All comments should refer to the name of the collection. Comments may be submitted by any of the following methods:
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A copy of the comments may also be submitted to the OMB Desk Officer for the FDIC, Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10235, Washington, DC 20503.
Interested members of the public may obtain additional information about the collection, including a copy of the proposed collection and related instructions without charge, by contacting Leneta G. Gregorie, at the address identified above.
To further encourage the development by insured financial institutions of small-dollar credit programs, the FDIC is contemplating conducting a pilot study to assess the viability of such programs, with the goal of demonstrating the extent of their profitability, determining the degree to which customers of such programs migrate into other banking products, determining the extent to which a savings component results in increased savings and debt reduction, and identifying program features which can be deemed “best practices.” Programs selected for the pilot may be either already in existence at a bank or developed specifically for participation in the study.
Volunteers for the program must be well managed, well capitalized institutions, and not be subject to any
The pilot study will require the quarterly collection of data from participating institutions, to the extent such data are not currently included in the Call Reports or other standard regulatory reports, to evaluate program success. For this purpose, the FDIC anticipates that the following (or similar) information will be collected from participating institutions on a quarterly basis:
• The total number and total dollar amount of small-dollar loans made under the pilot program;
• Average loan term and average dollar size of such loans;
• Average interest rates charged, average fees levied, and average calculations of APR, as required by the Truth in Lending Act;
• Aggregate delinquency, charge-off, and workout financing data;
• Profitability and/or break-even data for the overall program;
• The total number and total dollar amount of linked savings accounts opened as part of the program;
• Information as to duration and withdrawal rates of linked savings accounts;
• Data on utilization rates of any financial education component;
• Information regarding whether customers of the program migrated to other bank products; and
• To the extent possible, whether offering affordable loan products helped to wean customers off of high-cost debt.
Comments are invited on: (a) Whether these collections of information are necessary for the proper performance of the FDIC's functions, including whether the information has practical utility; (b) the accuracy of the estimate 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; and (d) ways to minimize the burden of the information collections on respondents, including through the use of automated collection techniques or other forms of information technology. All comments will become a matter of public record.
Federal Deposit Insurance Corporation.