[Federal Register Volume 60, Number 43 (Monday, March 6, 1995)]
[Notices]
[Pages 12218-12219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5369]



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FEDERAL RESERVE SYSTEM

Agency Forms Under Review

Background:

    Notice is hereby given of the submission of proposed information 
collection to the Office of Management and Budget (OMB) for its review 
and approval under the Paperwork Reduction Act (Title 44 U.S.C. Chapter 
35) and under OMB regulations on Controlling Paperwork Burdens on the 
Public (5 CFR Part 1320). A copy of the proposed information 
collection(s) and supporting documents is available from the agency 
clearance officer listed in the notice. Any comments on the proposal 
should be sent to the agency clearance officer and to the OMB desk 
officer listed in the notice.
DATES: Comments are welcome and should be submitted on or before March 
20, 1995.
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, D.C. 20551 (202-452-3829); for the hearing impaired 
only, telecommunications device for the deaf (TTD) (202-452-3544), 
Dorothea Thompson, Board of Governors of the Federal Reserve System, 
Washington, D.C. 20551.
OMB Desk Officer--Milo Sunderhauf--Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, Room 3208, Washington, D.C. 20503 (202-395-7340)
    Request for OMB approval to revise the following report:
    1. Report title: Report of Assets and Liabilities of U.S. Branches 
and Agencies of Foreign Banks.
Agency form number: FFIEC 002.
OMB Docket number: 7100-0032.
Frequency: Quarterly.
Reporters: U.S. branches and agencies of foreign banks.
Annual reporting hours: 49,350.
Estimated average hours per response: 22.15.
Number of respondents: 557.
Small businesses are affected.
    General description of report: This information collection is 
mandatory to obtain or retain a benefit (12 U.S.C. 3105(b)(2)), 
1817(a)(1) and (3), and 3102(b) and is given confidential treatment (5 
U.S.C. 552(b)(8).
SUMMARY: The proposed revisions to the FFIEC 002 that have been 
submitted to the Office of Management and Budget for approval are 
mandated by the Federal Financial Institutions Examination Council 
(FFIEC).
    On a quarterly basis, all U.S. branches and agencies of foreign 
banks (U.S. branches) are required to file detailed schedules of assets 
and liabilities in the form of a condition report and a variety of 
supporting schedules. This balance sheet information is used to fulfill 
the supervisory and regulatory requirements of the International 
Banking Act of 1978. The data are also used to augment the bank credit, 
loan, and deposit information needed for monetary policy purposes. The 
report is collected and processed by the Federal Reserve on behalf of 
all three federal bank regulatory agencies. The proposed changes affect 
several existing schedules.
    The following revisions are proposed for implementation as of March 
31, 1995.
    (1) On Schedule RAL, ``Assets and Liabilities,'' item 1.c for 
``Other bonds, notes, debentures, and corporate stock (including U.S. 
state and local securities) would be divided into ``Securities of 
freign governmental units'' and ``All other.''
    (2) On Schedule RAL, ``Assets and Liabilities'', a new item would 
be added for ``Trading Liabilities'' to disclose further information on 
trading activities (open short positions and revaluation losses on 
derivatives).
    (3) On Schedule RAL, ``Memoranda,'' five items would be added in 
which branches and agencies would separately report the amortized cost 
and fair value of any ``high-risk mortgage securities'' and of any 
``structured notes'' that are held in either the held-to-maturity or 
available-for-sale portfolios, and total sales of mutual funds and 
annuities.
    (4) On Schedule M, ``Due from/Due to Related Institutions in the 
U.S. and in Foreign Countries,'' a memorandum item would be added for 
revaluation gains and revaluation losses from the marking-to-market of 
off-balance-sheet derivatives contracts with related parties that are 
held for trading purposes.
    (5) The banking agencies would add three items to Schedule O, 
``Other Data for Deposit Insurance Assessments,'' in order to identify 
the amount of the these adjustments to reported demand deposits of a 
branch or agency for deposit insurance assessment purposes:
    (i) Amount by which demand deposits would be reduced if reciprocal 
demand balances between the reporting branch or agency and savings 
associations were reported on a net basis rather than a gross basis in 
Schedule E,
    (ii) Amount by which demand deposits would be increased if 
reciprocal demand balances between the reporting branch or agency and 
U.S. banks were reported on a gross basis rather than a net basis in 
Schedule E, and
    (iii) Amount by which demand deposits would be reduced if cash 
items in process of collection were included in the calculation of net 
reciprocal demand balances between the reporting branch or agency and 
U.S. banks savings associations in Schedule E.
    The following revisions are proposed for implementation as of June 
30, 1995.
    (1) Notional Amounts/Par Values
    At present, all branches and agencies report notional amount/par 
value data for interest rate, foreign exchange rate, and other 
commodity and equity contracts in items 2,3,4, and 9 of Schedule L, 
``Commitments and Contingencies,'' for transactions with non-related 
depository institutions, and in items 2,3,4, and 9 of Schedule M, Part 
V, ``Commitments and Contingencies,'' for transactions with related 
depository institutions. The existing items would be expanded to 
separate exchange-traded contracts from over-the-counter contracts and 
to separate equity derivative contracts from commodity and other 
contracts. (Spot foreign exchange contracts would also be reported 
separately.) In addition, for each of the four types of underlying risk 
exposures (i.e., interest rate, foreign exchange, equity, and commodity 
and other), the total notional amount/par value of contracts held for 
trading and held for purposes other than trading will be reported 
separately, with the latter further divided between contracts that are 
marked to market for FFIEC 002 reporting purposes and those that are 
not.
    (2) Gross Fair Values of Derivative Contracts
    For branches and agencies with $100 million or more in total assets 
that file the FFIEC 002 reporting forms, Schedule L and Schedule M, 
Part V, would also be expanded to include gross fair value data for 
derivatives. For each of the four types of underlying risk exposures, 
the gross positive and gross negative fair values will be reported 
separately for [[Page 12219]] 
    (i) Contracts held for trading purposes,
    (ii) Contracts held for purposes other than trading that are marked 
to market, and
    (iii) Contracts held for purposes other than trading that are not 
marked to market. When reporting gross fair values, no netting of 
contracts would be permitted.

    Board of Governors of the Federal Reserve System, February 28, 
1995.
William W. Wiles,
Secretary of the Board.
[FR Doc. 95-5369 Filed 3-3-95; 8:45AM]
Billing Code 6210-01-F