[Federal Register Volume 59, Number 61 (Wednesday, March 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7467]


[[Page Unknown]]

[Federal Register: March 30, 1994]


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FEDERAL RESERVE SYSTEM

[Docket No. 7100-0128]

 

Bank Holding Company Reporting Requirements

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final Board approval of changes to bank holding company 
reporting requirements.

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SUMMARY: Notice is hereby given of final approval by the Board of 
Governors of the Federal Reserve System (the Board) under delegated 
authority from the Office of Management and Budget (OMB), as per 5 CFR 
1320.9 (OMB Regulations on Controlling Paperwork Burdens on the 
Public), to the extension, with revision, of the Consolidated Financial 
Statements for Bank Holding Companies (FR Y-9C; OMB No. 7100-0128), the 
Parent Company Only Financial Statements for Large Bank Holding 
Companies (FR Y-9LP; OMB No. 7100-0128), and the Parent Company Only 
Financial Statements for Small Bank Holding Companies (FR Y-9SP; OMB 
No. 7100-0128) through December 1996. The Federal Reserve has also 
given final approval to the extension, without revision, of the 
Supplement to the Consolidated Financial Statements for Bank Holding 
Companies (FR Y-9CS; OMB No. 7100-0128). The reporting changes, 
summarized below, will be implemented for the March 31, 1994 reporting 
date.\1\

    \1\The reporting change to the FR Y-9SP is effective with the 
June 1994 reporting date.
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PUBLIC COMMENTS: On December 10, 1993, the Federal Reserve granted 
initial approval of this proposal. Notice of the proposed action was 
initially published in the Federal Register on December 17, 1993. 
Notice of an extension of the initial comment period, which ended 
January 3, 1994, and a request for public comment on additional changes 
to the reporting requirements necessitated by the proposed Call Report 
revisions was published in the Federal Register on February 10, 1994. 
The comment period expired on March 9, 1994. The Federal Reserve 
received three comment letters regarding the proposed changes to the 
bank holding company reports. All of the comment letters related to 
issues that have been addressed in the instructions to the reporting 
forms. In addition, one issue raised in one of the comment letters was 
retracted after certain clarifications were provided to the party who 
issued the comment.

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Mary M. McLaughlin--Division of Research and Statistics, Board 
of Governors of the Federal Reserve System, Washington, DC 20551 (202-
452-3829); OMB Desk Officer--Gary Waxman, Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, room 3208, Washington, DC 20503 (202-395-7340).

SUPPLEMENTARY INFORMATION:

General Information

    Under the Bank Holding Company Act of 1956, as amended, the Board 
is responsible for the supervision and regulation of all bank holding 
companies. The Y series of reports historically have been, and continue 
to be, the primary source of financial information on bank holding 
companies and their nonbanking activities between on-site inspections. 
Financial information, as well as ratios developed from the Y series 
reports, are used to detect emerging financial problems, to review 
performance for pre-inspection analyses, to evaluate bank holding 
company mergers and acquisitions, and to analyze a holding company's 
overall financial condition and performance as part of the Federal 
Reserve System's overall analytical effort.
    The Board has given final approval, effective with the March 31, 
1994 reporting date, of the revisions described in the ``Report Form 
Revisions'' section below on the FR Y-9C, FR Y-9LP, and FR Y-9SP. These 
include the appropriate reporting changes to the FR Y-9 reports that 
are necessitated by revisions to the March 1994 Consolidated Reports of 
Condition and Income (Call Report).
    In addition, the Board has given final approval to revise the 
reporting panel to reduce the reporting burden on small bank holding 
companies. The revision to the reporting panel is discussed in the 
``Reporting Panel Revision'' section below.

Description of Affected Reports

    1. Report Title: Consolidated Financial Statements for Bank Holding 
Companies.
    Agency Form Number: FR Y-9C.
    OMB Docket Number: 7100-0128.
    Frequency: Quarterly.
    Reporters: Bank Holding Companies.
    Annual Reporting Hours: 147,511.
    Estimated Average Hours Per Response: Range from 5 to 1,250 hours.
    Number of Respondents: 1,418.
    Small businesses are affected.
    The information collection is mandatory (12 U.S.C. 1844(b) and (c)) 
and part of the information is given confidential treatment. 
Confidential treatment is not routinely given to the data in these 
reports. However, confidential treatment for the remaining information, 
in whole or in part, can be requested in accordance with the 
instructions to the form.
    The FR Y-9C consolidated financial statements are currently filed 
by top-tier bank holding companies with total consolidated assets of 
$150 million or more and by any bank holding company with more than one 
subsidiary bank. In addition, the FR Y-9C must be filed by lower-tier 
bank holding companies that have total consolidated assets of $1 
billion or more.
    The following bank holding companies are exempt from filing the FR 
Y-9C, unless the Board specifically requires an exempt company to file 
the report: Bank holding companies that are subsidiaries of another 
bank holding company and have total consolidated assets of less than $1 
billion; bank holding companies that have been granted a hardship 
exemption by the Board under section 4(d) of the Bank Holding Company 
Act; and foreign banking organizations as defined by section 211.21 of 
Regulation K.
    The report includes a balance sheet, income statement, and 
statement of changes in equity capital with supporting schedules 
providing information on securities, loans, risk-based capital, 
deposits, interest sensitivity, average balances, off-balance sheet 
activities, past due loans, and loan charge-offs and recoveries.
    2. Report Title: Parent Company Only Financial Statements for Large 
Bank Holding Companies.
    Agency Form Number: FR Y-9LP.
    OMB Docket Number: 7100-0128.
    Frequency: Quarterly.
    Reporters: Bank Holding Companies.
    Annual Reporting Hours: 28,722.
    Estimated Average Hours Per Response: Range from 2.0 to 13.5 hours.
    Number of Respondents: 1,751.
    Small businesses are affected.
    The information collection is mandatory (12 U.S.C. 1844(b) and 
(c)). Confidential treatment is not routinely given to the information 
in these reports. However, confidential treatment for the report 
information, in whole or in part, can be requested in accordance with 
the instructions to the form.
    The FR Y-9LP financial statements are to be filed on a parent 
company only basis by any bank holding company filing an FR Y-9C, or by 
the parent company of any bank holding company that is a majority-owned 
subsidiary of a FR Y-9C respondent. The following bank holding 
companies are exempt from filing the FR Y-9LP, unless the Board 
specifically requires an exempt company to file the report: bank 
holding companies that have been granted a hardship exemption by the 
Board under section 4(d) of the Bank Holding Company Act; and foreign 
banking organizations as defined by section 211.21 of Regulation K.
    3. Report Title: Parent Company Only Financial Statements for Small 
Bank Holding Companies.
    Agency Form Number: FR Y-9SP.
    OMB Docket Number: 7100-0128.
    Frequency: Semiannual.
    Reporters: Bank Holding Companies.
    Annual Reporting Hours: 33,600.
    Estimated Average Hours Per Response: Range from 1.5 to 6.0 hours.
    Number of Respondents: 4,480.
    Small businesses are affected.
    The information collection is mandatory (12 U.S.C. 1844(b) and 
(c)). Confidential treatment is not routinely given to the data in 
these reports. However, confidential treatment for the report 
information, in whole or in part, can be requested in accordance with 
the instructions to the form.
    The FR Y-9SP is a parent company only financial statement filed by 
one bank holding company with total consolidated assets of less than 
$150 million. This report, an abbreviated version of the more extensive 
FR Y-9LP, is designed to obtain basic balance sheet and income 
information for the parent company, information on intangible assets, 
information on intercompany transactions, and data for capital adequacy 
evaluation.

Report Form Revisions

FR Y-9C

    The Federal Reserve has approved the following revisions to the FR 
Y-9C:
Schedule HC, Consolidated Balance Sheet
    (1) Revise item 2, ``Securities,'' by splitting it into two 
separate items: ``Available-for-sale securities'' and ``Held-to-
maturity securities'' in accordance with FASB Statement No. 115.
    (2) Add an item, ``Trading liabilities.''
    (3) Add an item, ``Net unrealized holding gains (losses) on 
available-for-sale securities.''
Schedule HC-A, Securities
    (1) Revise schedule into a four-column format to collect the 
amortized cost and fair value of available-for-sale and held-to-
maturity securities.
    (2) Delete memoranda item 2, ``Market value of securities.''
    (3) Delete memoranda item 5, ``Debt securities held for sale.''
    (4) Add an item, ``Amortized cost of held-to-maturity securities 
sold or transferred to available-for-sale or trading securities during 
the calendar year-to-date.''
    (5) Add memoranda items for bank holding companies with total 
consolidated assets of $1 billion or more to collect additional detail 
on certain debt securities, mortgage-backed securities and equity 
securities.
Schedule HC-G, Memoranda
    (1) Add an item to collect the amount of ``Deferred tax assets in 
excess of proposed regulatory capital limits.''
    (2) Add items, ``Revaluation gains (losses) on interest rate, 
foreign exchange rate, and other commodity and equity contracts.'' 
These items would only be reported by bank holding companies with total 
consolidated assets of $1 billion or more, or with $2 billion or more 
in par/notional amounts of interest rate, foreign exchange rate and 
other commodity and equity contracts.
    (3) Add an item, ``Liability for short positions.'' This item would 
only be reported by bank holding companies with total consolidated 
assets of $1 billion or more, or with $2 billion or more in par/
notional amounts of interest rate, foreign exchange rate and other 
commodity and equity contracts.
Schedule HC-H, Past Due and Nonaccrual Loans
    (1) Add an item to collect past due information on interest rate, 
foreign exchange rate, and commodity and other equity contracts. This 
item would only be reported by bank holding companies with total 
consolidated assets of $1 billion or more, or with $2 billion or more 
in par/notional amounts of interest rate, foreign exchange rate and 
other commodity and equity contracts.
Notes to the Balance Sheet
    (1) Require bank holding companies to disclose in a footnote the 
amount of net unrealized losses on marketable equity securities (net of 
tax effect). Under FASB Statement No. 115, the amount of net unrealized 
losses on marketable equity securities is included in the new equity 
item,''net unrealized holding gains (losses) on available-for-sale 
securities.'' Separate disclosure of the net unrealized losses on 
marketable equity securities is necessary to calculate risk-based 
capital until final guidelines are determined regarding FASB Statement 
No. 115.
Schedule HI, Income Statement
    (1) Revise item 6, ``Gains (losses) on securities not held in 
trading accounts,'' by splitting it into two separate items: ``Realized 
gains (losses) on held-to-maturity securities'' and the ``Realized 
gains (losses) on available-for-sale securities.''
    (2) Add a free-form memorandum item, which would require bank 
holding companies to disclose the three largest service fees and 
commissions (other than service charges on deposit accounts) that 
exceed 10 percent of ``Other service charges, commissions, and fees,'' 
Schedule HI, line item 5.b(2).
    (3) Revise Memorandum item 5, ``Nonrecurring transactions,'' to: 
(a) Replace the reporting of gains and losses on the sales of assets 
(other than real estate owned) with gains and losses on the sales of 
loans; (b) eliminate the requirement of reporting ``other nonrecurring 
transactions'' that are 25% or more of noninterest income or 
noninterest expense (and the applicable income tax effect); (c) report 
gains and losses on other real estate owned; and (d) report the three 
largest noninterest income items and the three largest noninterest 
expense items that exceed 10% of line item 5.e, ``Other noninterest 
income'' and line item 7.c, ``Other noninterest expense,'' 
respectively.
Schedule HI-A, Changes in Equity
    (1) Add an item, ``Change in net unrealized holding gains (losses) 
on available-for-sale securities.''

FR Y-9LP

    The Federal Reserve has approved the following revisions to the FR 
Y-9LP:
Schedule PC, Parent Company Only Balance Sheet
    (1) Revise instructions regarding securities for the adoption of 
FASB Statement No. 115.
    (2) Add an item to equity capital, ``Net unrealized holding gains 
(losses) on available-for-sale securities.''
Schedule PC-B, Memoranda
    (1) Revise item 11, ``Market value of securities included in 
Schedule PC, item 2,'' by splitting it into two separate items: ``Fair 
value of available-for-sale securities'' and ``Amortized cost of held-
to-maturity securities'' in accordance with FASB Statement No. 115.
    (2) Add an item to collect ``Bank holding company (parent company 
only) borrowings not held by commercial bank(s) or by insiders 
(including directors) and their interests.''
Schedule PI-A, Cash Flow Statement
    (1) Add an item to part III, Cash Flows From Financing Activities, 
``Payment to repurchase common stock.''

FR Y-9SP

    The Federal Reserve has approved the following revisions to the FR 
Y-9SP:
Balance Sheet
    (1) Revise instructions regarding securities for the adoption of 
FASB Statement No. 115.
    (2) Add the following breakout of ``Equity capital'':
    (a) ``Common stock (including related surplus)''
    (b) ``Preferred stock (including related surplus)''
    (c) ``Retained earnings (net of Treasury stock)''
    (3) Add an item to equity capital, ``Net unrealized holding gains 
(losses) on available-for-sale securities.''
    (4) Add a memoranda item, ``Total consolidated assets of the bank 
holding company.'' (This item would only be completed by multibank 
holding companies, with total consolidated assets of less than $150 
million, without any debt outstanding to the general public and not 
engaged in a nonbank activity either directly or indirectly involving 
financial leverage and not engaged in credit extending activities).
    (5) Revise memoranda item 6, ``Market value of securities,'' by 
splitting it into two items: ``Fair value of available-for-sale 
securities'' and ``Amortized cost of held-to-maturity securities'' in 
accordance with FASB Statement No. 115.
    (6) Add memoranda items, ``Other assets'' and ``Other liabilities'' 
that exceed 25 percent of balance sheet item 7, ``Other assets,'' and 
item 13, ``Other liabilities'' respectively.
Income Statement
    (1) Delete the memorandum item, ``tax payments received by the bank 
holding company from the bank subsidiary that was retained by the bank 
holding company in excess of the amount paid to the IRS.''
Notes to the Financial Statements
    (1) Add a ``Notes to the Financial Statement'' section similar to 
that on the FR Y-9C and FR Y-9LP.

Proposed Reporting Panel Revision

    The Federal Reserve has given final approval to revise the 
reporting panels on the FR Y-9C, FR Y-9LP, and FR Y-9SP to reduce 
reporting burden for small bank holding companies. Multibank holding 
companies with less than $150 million in total consolidated assets, 
without any debt outstanding to the general public2 and not 
engaged in a nonbank activity (either directly or indirectly) involving 
financial leverage3 and not engaged in credit extending activities 
would no longer be required to file the quarterly FR Y-9C and FR Y-9LP, 
but would file the FR Y-9SP semiannually.
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    \2\Debt outstanding to the general public is defined as debt 
held by parties other than financial institutions, officers, 
directors, and controlling shareholders of the banking organization 
or their related interests.
    \3\Financial leverage is the use of debt to supplement the 
equity in a company's capital structure.
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Legal Status

    The Legal Division has determined that (12 U.S.C. 1844 (b) and (c)) 
authorizes the Board to require this report.
    Overall, the Board does not consider the data in these reports to 
be confidential. However, a bank holding company may request 
confidential treatment pursuant to section (b)(4) and (b)(6) of the 
Freedom of Information Act (5 U.S.C. 552 (b)(4) and (b)(6)). 
Confidentiality is also granted pursuant to section (b)(8) of the 
Freedom of Information Act (5 U.S.C. 552(b)(8)). Section (b)(4) 
provides exemption for ``trade secrets and commercial or financial 
information obtained from a person and privileged or confidential.'' 
Section (b)(6) provides exemption for ``personnel and medical files and 
similar files the disclosure of which would constitute a clearly 
unwarranted invasion of personal privacy.'' Section (b)(8) exempts 
matters that are ``contained in or related to examination, operating, 
or condition reports prepared by, on behalf of, or for the use of an 
agency responsible for the regulation or supervision of financial 
institutions.''
    The Legal Division has also determined that on the FR Y-9C, 
Schedule HC-H, Column A, requiring information on ``assets past due 30 
through 89 days and still accruing'' and memoranda item 2 are 
confidential pursuant to section (b)(8) of the Freedom of Information 
Act (5 U.S.C. 552(b)(8)).

Regulatory Flexibility Act Analysis

    The Board certifies that the above bank holding company reporting 
requirements are not expected to have a significant economic impact on 
small entities within the meaning of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.). The reporting requirements for the small companies 
require significantly fewer items of data to be submitted than the 
amount of information required of large bank holding companies.
    The information that is collected on the reports is essential for 
the detection of emerging financial problems, the assessment of a 
holding company's financial condition and capital adequacy, the 
performance of pre-inspection reviews, and the evaluation of expansion 
activities through mergers and acquisitions. The imposition of the 
reporting requirements is essential for the Board's supervision of bank 
holding companies under the Bank Holding Company Act.

Board of Governors of the Federal Reserve System, March 24, 1994.
Jennifer J. Johnson,
Associate Secretary of the Board.
[FR Doc. 94-7467 Filed 3-29-94; 8:45 am]
BILLING CODE 6210-01-P