[Federal Register Volume 59, Number 217 (Thursday, November 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27870]


[[Page Unknown]]

[Federal Register: November 10, 1994]


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FEDERAL RESERVE SYSTEM

12 CFR Part 208

[Regulation H; Docket No. R-0854]

 

Membership of State Banking Institutions in the Federal Reserve 
System

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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SUMMARY: The Board is amending its Regulation H to remove the 
requirement that a state member bank publish its reports of condition. 
The amendment implements section 308 of the Riegle Community 
Development and Regulatory Improvements Act of 1994 which contains a 
number of measures to reduce the burden of federal regulation in 
depository institutions.

EFFECTIVE DATE: November 10, 1994.

FOR FURTHER INFORMATION CONTACT: Lawranne Stewart, Senior Attorney 
(202/452-3513), Legal Division; or Nancy Rawlings, Senior Financial 
Analyst, (202/ 452-3059), Division of Banking Supervision and 
Regulation. For the hearing impaired only, Telecommunications Device 
for the Deaf (``TDD''), Dorothea Thompson (202/452-3544).

SUPPLEMENTARY INFORMATION: Title III of the Riegle Community 
Development and Regulatory Improvements Act of 1994 (Pub. L. 103-325, 
108 Stat. 2160) (the Act) contains a number of measures to reduce the 
burden of federal regulation on depository institutions. Title III, 
section 308, amended the Federal Reserve Act to repeal the requirement 
in section 9, paragraph 6 (12 U.S.C. 324) that state member banks 
publish their reports of condition. Section 308 also removed similar 
publication requirements in the National Bank Act and the Federal 
Deposit Insurance Act.
    The Board's Regulation H, Membership of State Banking Institutions 
in the Federal Reserve System, currently requires that a state member 
bank publish its report of condition (Forms FFIEC 031-034) within 20 
days of the date the call for a report of condition is issued. 12 CFR 
208.10(a). The report of condition is included in the Consolidated 
Reports of Condition and Income, usually referred to as the ``Call 
Report,'' that state member banks generally are required to submit on a 
quarterly basis.
    In order to achieve the reduction in regulatory burden intended 
under the Act, the Board is removing the provisions of Regulation H 
that require publication of a state member bank's report of condition. 
The amendments delete paragraphs (a) and (b) of Sec. 208.10 of the 
regulation. Additionally, the section is renamed to reflect the subject 
of the remaining paragraph, in which the Board exercises its authority 
under section 21 of the Federal Reserve Act to waive submission of 
reports of affiliates by state member banks required under section 9 of 
the Federal Reserve Act.
    The Board notes that a bank's Call Reports, including its reports 
of condition, will continue to be publicly available through the 
National Technical Information Service of the United States Department 
of Commerce under the Board's Rules Regarding Availability of 
Information. See 12 CFR 261.6(c)(3). Additionally, state member banks 
will continue to be required to advise shareholders, customers, and the 
general public of the availability of year-end Call Reports or other 
financial information under Sec. 208.17 of Regulation H. See 12 CFR 
208.17. The Board believes that these provisions are sufficient to 
ensure that adequate information is available to the public with 
respect to the condition of a state member bank. Additionally, the 
amendment has no effect on any publication requirements that may be 
imposed on a state member bank under state law.

Notice and Public Participation

    The provisions of the Administrative Procedure Act relating to 
notice and public participation (5 U.S.C. 553(b)) have not been 
followed in connection with the adoption of these amendments, as the 
amendments implement a statutory provision that is intended to reduce 
the regulatory burden on banks. The Board therefore finds good cause 
for determining, and so determines, that notice and public 
participation are unnecessary and contrary to the public interest.
    The provisions of the Act relating to notice of the effective date 
of a rule (5 U.S.C. 553(d)) have not been followed in connection with 
the adoption of these amendments. Section 308 of the Act was effective 
as of the date of enactment (September 24, 1994), and the Board is 
amending Regulation H promptly to implement the statutory provision. 
For this reason, the Board finds there is good cause to determine, and 
so determines, that notice is not necessary and would be contrary to 
the purpose of section 308. These amendments have therefore been 
published in final with an immediate effective date.

Regulatory Flexibility Act

    Because the Board finds that no notice of proposed rulemaking is 
required, a statement concerning the effects of the rule on small 
entities is also not required under the Regulatory Flexibility Act. 5 
U.S.C. 604. The Board notes, however, that the proposed amendments will 
reduce the regulatory burden imposed on all state member banks. The 
amendments should be particularly helpful to smaller institutions for 
which the publication requirement represent a more significant cost 
burden.

List of Subjects in 12 CFR Part 208

    Accounting, Agriculture, Banks, banking, Capital adequacy, 
Confidential business information, Currency, Federal Reserve System, 
Reporting and recordkeeping requirements, Securities.

    For the reasons set forth in the preamble, the Board amends 12 CFR 
part 208 as set forth below.

PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL 
RESERVE SYSTEM (REGULATION H)

    1. The authority citation for Part 208 is revised to read as 
follows:

    Authority: 12 U.S.C. 36, 248(a), 248(c), 321-338a, 371d, 461, 
481-486, 601, 611, 1814, 1823(j), 1828(o), 1831o, 1831p-1, 3105, 
3310, 3331-3351 and 3906-3909; 15 U.S.C. 78b, 781(b), 781(g), 
781(j), 78o-4(c)(5), 78q, 78q-1 and 78w; 31 U.S.C. 5318.

    2. Section 208.10 is amended as follows:
    a. The section heading is revised;
    b. Paragraphs (a) and (b) are removed; and
    c. The paragraph designation and heading for paragraph (c) are 
removed.
    The revised Section heading reads as follows:


Sec. 208.10  Waiver of reports of affiliates.

* * * * *

Subpart A--[Amended]

    3. In Subpart A, footnotes 11 through 13 are redesignated as 
footnotes 9 through 11, respectively.


Sec. 208.17  [Amended]

    4. Section 208.17 is amended by removing the undesignated text 
following paragraph (a)(2).

    By order of the Board of Governors of the Federal Reserve 
System, November 4, 1994.
William W. Wiles,
Secretary of the Board.
[FR Doc. 94-27870 Filed 11-9-94; 8:45am]
Billing Code 6210-01-P