[Federal Register Volume 59, Number 247 (Tuesday, December 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31713]


[[Page Unknown]]

[Federal Register: December 27, 1994]


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FEDERAL RESERVE SYSTEM
 

Bank Holding Company Reporting Requirements

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice and a request for public comments.

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SUMMARY: Notice is hereby given of initial approval, and public comment 
is requested, 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 revision of the Consolidated 
Financial Statements for Bank Holding Companies (FR Y-9C; OMB No. 7100-
0128); the extension, with revision, of the Annual Report of Bank 
Holding Companies (FR Y-6; OMB No. 7100-0124), the Combined Financial 
Statements of Nonbank Subsidiaries of Bank Holding Companies (FR Y-11Q; 
OMB No. 7100-0244) and the Annual Report of Selected Financial Data for 
Nonbank Subsidiaries of Bank Holding Companies (FR Y-11I; OMB No. 7100-
0218); and the elimination of the Combined Financial Statements of 
Nonbank Subsidiaries of Bank Holding Companies, by Type of Nonbank 
Subsidiary (FR Y-11AS; OMB No. 7100-0244). Following review of public 
comments, the Board will take final action. The proposed reporting 
changes, summarized in this notice, will be effective for the FR Y-9C, 
FR Y-11Q, and FR Y-11AS with the March 31, 1995 reporting date and 
effective for the FR Y-11I for the December 31, 1995 reporting date. 
The Federal Reserve anticipates making the proposed reporting changes 
to the FR Y-6 effective December 1994 unless significant objections 
from the public are received during the comment period.

DATES: Comments must be submitted on or before January 26, 1995.

ADDRESSES: Comments, which should refer to the OMB Docket number (or 
Agency form number in the case of a new information collection that has 
not yet been assigned an OMB number) should be addressed to Mr. William 
W. Wiles, Secretary, Board of Governors of the Federal Reserve System, 
20th and C Streets, N.W., Washington, DC 20551, or delivered to the 
Board's mail room between 8:45 a.m. and 5:15 p.m., and to the security 
control room outside of those hours. Both the mail room and the 
security control room are accessible from the courtyard entrance on 
20th Street between Constitution Avenue and C Street, N.W. Comments 
received may be inspected in room B-1122 between 9:00 a.m. and 5:00 
p.m., except as provided in Section 261.8(a) of the Board's Rules 
Regarding Availability of Information, 12 CFR 261.8(a).
    A copy of the comments may also be submitted to the OMB desk 
officer for the Board: Milo Sunderhauf, Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 3208, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Robert T. Maahs, Supervisory Financial 
Analyst (202/872-4935) or Tina Robertson, Senior Financial Analyst 
(202/452-2949). A copy of the proposed form, the request for clearance 
(OMB 83I), supporting statement, instructions, and other documents that 
will be placed into OMB's public docket files once approved may be 
requested from the agency clearance officer, Mary M. McLaughlin, 
Federal Reserve Board Clearance Officer, (202/452-3829), Division of 
Research and Statistics, Board of Governors of the Federal Reserve 
System, Washington, D.C. 20551. For the hearing impaired only, 
Telecommunications Device for the Deaf (TTD) Dorothea Thompson, (202/
452-3544), Board of Governors of the Federal Reserve System, 
Washington, D.C. 20551.

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 FR Y-9 and FR Y-11 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 analysis, 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 FR Y-6 
report is the Federal Reserve's principal source of internally 
generated and independently audited financial data on individual bank 
holding companies and their banking and nonbanking subsidiaries. The 
report enables the Federal Reserve to monitor bank holding company 
operations and to ensure that the operations are conducted in a safe 
and sound manner and in compliance with the provisions of the Bank 
holding Company Act and Regulation Y.

Proposal to approve under OMB delegated authority the revision of:
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: 172,720
Estimated Average Hours per Response: Range from 5 to 1,250 hours
Number of Respondents: 1,346
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 reporting 
information, in whole or in part, can be requested in accordance with 
the instructions to the form.
    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)].
    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 lower-tier bank holding companies that have 
total consolidated assets of $1 billion or more. In addition, all 
multibank bank holding companies with debt outstanding to the general 
public or engaged in certain nonbank activities, regardless of size, 
must file the FR Y-9C. 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 211.23(b) 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.
    The Federal Reserve proposes the following revisions to the FR Y-
9C. Most of the proposed new items are needed to maintain consistency 
with comparable items recently proposed or previously added to the 
commercial bank Reports of Condition and Income (Call Report).
    A. Revisions related to consistent reporting with the Call Report:
Schedule HC-A, Securities
    (1) Report separately as memoranda items the amortized cost and 
fair value of any high-risk mortgage securities and any structured 
notes.
    (2) Modify the reporting instructions for the category labeled 
``mortgage-backed securities'' to capture more securities of this 
nature. In addition, the caption for the existing item of 
collateralized mortgage obligations (CMOs) and real estate mortgage 
investment conduits (REMICs) issued by the Federal National Mortgage 
Association (FNMA) and the Federal Home Loan Mortgage Corporation 
(FHLMC) would be modified to explicitly refer to the REMICs that the 
Government National Mortgage Association (GNMA) has recently begun to 
issue.
Schedule HC-F, Off-Balance Sheet Items
    Revise Part 2 to collect more comprehensive information on 
derivative instruments, including further breakdowns of notional 
contract amounts by instrument type, by risk exposure underlying the 
contract, and by whether the contract is traded on the exchange or over 
the counter and total notional amount and gross positive and gross 
negative fair values of contracts held for trading purposes and for 
purposes other than trading.
Schedule HI, Income Statement
    Add memoranda items to collect trading revenue that reflects the 
combined revenues from cash and derivative instruments, with a 
breakdown by underlying risk exposure, and information on the effect on 
earnings of derivatives held for purposes other than trading.
Schedules HC-I and HC-J, Risk-Based Capital
    (1) Add an item to collect the net credit exposure of all 
derivative contracts taking into consideration netting arrangements 
permissible under the risk-based capital standards.
    (2) Expand the risk-based capital ``notional principal value, 
maturity and replacement cost matrix'' for derivatives to include an 
additional remaining maturity time band and four additional categories 
of derivative contracts (gold, other precious metals, other commodity 
and equity contracts).
Schedule HI-B, Charge-offs and Recoveries and Changes in Allowance for 
Loan and Lease Losses
    Delete Memoranda, Part 2, Column B, the reconciliation of the 
allocated transfer risk reserve.
Schedule of Trading Account Assets and Liabilities
    Add a schedule for the reporting of trading account assets and 
liabilities in a manner consistent with the schedule currently included 
in the Call Report. This schedule would be completed only 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.
Mutual Funds and Annuities Information
    Add line items to collect quarterly gross sales of mutual funds (by 
type of fund) and annuities, including sales of proprietary mutual 
funds and annuities, and the fee income generated from the sale and 
servicing of mutual funds and annuities in domestic offices.
Gross Redemptions of Mutual Funds and Annuities
    Add a line item to collect the total amount of gross redemptions of 
mutual funds and annuities during the quarter.
    B. Minor clarifications to the existing report forms and 
instructions:
    Revise the wording of Schedule HC-J, Part 3, line item 3 to conform 
with the intent of the existing instructions. The current wording of 
this line item ``unsecured commitments,'' will be revised to read as 
``unutilized commitments.'' In addition, minor instructional 
clarifications will be implemented based on comments received from the 
industry and Reserve Banks.

Proposal to approve under OMB delegated authority the extension, with 
revision, of the following reports:
1. Report Title: Annual Report of Bank Holding Companies
Agency Form Number: FR Y-6
OMB Docket Number: 7100-0124
Frequency: Annual
Reporters: Bank Holding Companies
Annual Reporting Hours: 21,972
Estimated Average Hours per Response: Range from 1.3 to 101 hours per 
response
Number of Respondents: 5,493
Small businesses are affected.

    The information collection is mandatory [12 U.S.C. 1844(b) and (c)] 
and 12 CFR 225.5 of Regulation Y. Confidential treatment is not 
routinely given to the information in these reports. However, 
confidential treatment for the report information can be requested, in 
whole or part, in accordance with the instructions to the form.
    The FR Y-6 is an annual report filed by the top-tier bank holding 
companies. Foreign banking organizations as defined by section 
211.23(b) of Regulation K are not required to file this form.
    The FR Y-6 consists of consolidated and parent company financial 
statements in the company's own format. Additionally, financial 
statements for the nonbank subsidiaries of the holding company and 
information on the identity, percentage ownership, and business 
interests of principal shareholders, directors, and executive officers 
are included in the report. Amendments to the organizational documents, 
information on insider loans, and an organization chart are also 
currently required.
    The Federal Reserve proposes the following revisions to the FR Y-6:
    (1) Eliminate the requirement to submit consolidated and parent 
company financial statements.
    (2) Revise the requirement for audited financial statements to 
include only holding companies with assets of $500 million or more.
    (3) Eliminate the requirement to submit nonbank subsidiary 
financial statements. Incorporate this information into an expanded 
standardized FR Y-11 report as discussed below.
    (4) Eliminate the requirement to submit certified copies of 
amendments to organizational documents.
    (5) Eliminate the collection of information on insiders loans.
    (6) Eliminate the confirmation of changes in investments and 
activities.

2. Report Title: Combined Financial Statements of Nonbank Subsidiaries 
of Bank Holding Companies
Agency Form Number: FR Y-11Q
OMB Docket Number: 7100-0244
Frequency: Quarterly
Reporters: Bank Holding Companies
Annual Reporting Hours: 6,696
Estimated Average Hours per Response: Range from 3.0 to 8.0 hours
Number of Respondents: 270
Small businesses are affected.

    The information collection is mandatory [12 U.S.C. 1844(b) and (c)] 
and 12 CFR 225.5(b). 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-11Q is filed by all bank holding companies with total 
consolidated assets of $1 billion or more, regardless of whether or not 
the bank holding companies own any nonbank subsidiaries and by all bank 
holding companies with total assets of $150 million or more but less 
than $1 billion that meet one or more of the following conditions: (a) 
the assets of the holding company's nonbank subsidiaries constitute 5 
percent or more of the holding company's total consolidated assets; or 
(b) the net income of the holding company's nonbank subsidiaries make 
up 5 percent or more of the holding company's total consolidated net 
income; or (c) the holding company's investment in and/or loans and 
advances to nonbank subsidiaries exceed 5 percent of the holding 
company's total consolidated equity capital.
    The report collects basic financial information on nonbank 
subsidiaries and consists of a balance sheet, income statement, and a 
memoranda section.
    The Federal Reserve proposes the following revisions to the FR Y-
11Q:
    (1) Expand the report to collect more detailed financial 
information, comparable to items collected on the FR Y-9C. The proposed 
comprehensive financial statements include a balance sheet, off-balance 
sheet items, a memoranda section, an income statement, and a statement 
of changes in equity capital.
    (2) Revise the reporting criteria for bank holding companies with 
assets of $150 or more to collect information on an individual basis 
from each nonbank subsidiary viewed as having a significant effect on 
the condition of the bank holding company. All bank holding companies 
with total consolidated assets of $150 million or more would file a 
report for each individual nonbank subsidiary with total assets equal 
to 5 percent or more of the bank holding company's consolidated Tier 1 
capital, or where the subsidiary's total operating revenue equals 5 
percent or more of the bank holding company's consolidated total 
operating revenue.

3. Report Title: Annual Report of Selected Financial Data for Nonbank 
Subsidiaries of Bank Holding Companies
Agency Form Number: FR Y-11I
OMB Docket Number: 7100-0218
Frequency: Annual
Reporters: Bank Holding Companies
Annual Reporting Hours: 13,216
Estimated Average Hours per Response: Range from .4 to 8.0 hours
Number of Respondents: 4130
Small businesses are affected.

    The information collection is mandatory [12 U.S.C. 1844(b) and (c)] 
and 12 CFR 225.5(b). 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-11I report is filed by a top-tier bank holding company for 
each of its nonbank subsidiaries, whether directly or indirectly owned. 
Combined and consolidated reporting is permitted in some instances. 
Foreign banking organizations are not required to file the report.
    The report consists of ten summary financial items and two items 
providing consolidation information.
    The Federal Reserve proposes the following revisions to the FR Y-
11I:
    (1) Expand the report to collect more detailed financial 
information, comparable to items proposed for the FR Y-11Q but with 
certain detail reported only as summary items. The proposed financial 
statements will include a balance sheet, income statement, off-balance 
sheet, and a statement on changes in equity capital. The FR Y-11I will 
also include a loan schedule to be submitted only by respondents 
engaged in credit extending activities.
    (2) Revise the reporting criteria to collect information on an 
individual basis annually from each nonbank subsidiary not required to 
file the proposed FR Y-11Q.

Proposal to approve under OMB delegated authority the elimination of:
Report Title: Combined Financial Statements of Nonbank Subsidiaries of 
Bank Holding Companies, by Type of Nonbank Subsidiary
Agency Form Number: FR Y-11AS
OMB Docket Number: 7100-0244
Frequency: Annual
Reporters: Bank Holding Companies
Annual Reporting Hours: 1,680
Estimated Average Hours per Response: Range from 1.0 to 17.0 hours
Number of Respondents: 271
Small businesses are affected.

    The information collection is mandatory [12 U.S.C. 1844(b) and (c)] 
and 12 CFR 225.5(b). 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-11AS is filed by all bank holding companies with total 
consolidated assets of $1 billion or more, regardless of whether or not 
the bank holding companies own any nonbank subsidiaries and by all bank 
holding companies with total assets of $150 million or more but less 
than $1 billion that meet one or more of the following conditions: (a) 
The assets of the holding company's nonbank subsidiaries constitute 5 
percent or more of the holding company's total consolidated assets; or 
(b) the net income of the holding company's nonbank subsidiaries make 
up 5 percent or more of the holding company's total consolidated net 
income; or (c) the holding company's investment in and/or loans and 
advances to nonbank subsidiaries exceed 5 percent of the holding 
company's total consolidated equity capital.
    The report collects the same report items as the FR Y-11Q by type 
of nonbank activity and consists of a balance sheet, income statement, 
and a memoranda section. The Federal Reserve proposes to eliminate this 
report.

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.

    By order of the Board of Governors of the Federal Reserve 
System, December 20, 1994.
William W. Wiles,
Secretary of the Board.
[FR Doc. 94-31713 Filed 12-23-94; 8:45 am]
BILLING CODE 6210-01-P