[Federal Register Volume 60, Number 183 (Thursday, September 21, 1995)]
[Notices]
[Pages 48991-48993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23386]



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FEDERAL RESERVE SYSTEM


Agency Forms Under Review
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice.

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BACKGROUND: Notice is hereby given of the final approval of proposed 
information collections by the Board of Governors of the Federal 
Reserve System (Board) under OMB delegated authority, as per 5 C.F.R. 
1320.9 (OMB Regulations on Controlling Paperwork Burdens on the 
Public).
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--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).
    Final approval under OMB delegated authority of the extension, with 
revisions, of the following report:
    1. Report title: Report of Commercial Paper Outstanding Placed by 
Brokers and Dealers (FR 2957a); Report of Commercial Paper Outstanding 
Placed Directly by Issuers (FR 2957b); Daily Report of Offering Rates 
on Commercial Paper (FR 2957d).
Agency form numbers: FR 2957a, b, and d
OMB Docket number: 7100-0002
Frequency: Daily, weekly, and monthly
Reporters: Brokers and dealers and direct issuers of commercial paper
Annual reporting hours: 1,858
Estimated average hours per response: 0.20 to 0.75
Number of respondents: 68
Small businesses are not affected.
    General description of report: This information collection is 
voluntary and is authorized by law [12 U.S.C. Sec. 248(a)(2)]. The FR 
2957a and b are confidential [5 U.S.C. Sec. 552(b)(4)].
    Abstract: These reports provide information on the amounts 
outstanding and selected offering rates on commercial paper, which the 
Federal Reserve uses to gauge the aggregate flow of funds and to 
determine the composition of short-term financing components in credit 
markets.
    2. Report title: International Applications and Prior Notifications 
under Subparts A and C of Regulation K.
Agency form number: FR K-1
OMB Docket number: 7100-0107

[[Page 48992]]

Frequency: On occasion
Reporters: State member and national banks, Edge and corporations, and 
bank holding companies.
Annual reporting hours: 440
Estimated average hours per response: Varies from 10 to 20 hours
Number of respondents: 38
Effecitve Date: [insert a date 30 days after publication]
Small businesses are not affected.
    General description of report: This information collection is 
required (sections 25 and 25A of the Federal Reserve Act (12 U.S.C. 
601-604(a) and 611-631), and the Bank Holding Company Act (12 U.S.C. 
1843(c)(13), 1843(c)(14), and 1844(c))). The applying organization has 
the opportunity to request confidentiality for information that it 
believes will qualify for a Freedom of Information Act exemption.
    Abstract: The FR K-1 is a compilation of all the applications and 
prior notification requirements in Regulation K that govern the 
formation of Edge and Agreement corporations and the international and 
foreign activities of U.S. banking organizations.
    The proposed revisions include the addition of one item, expansion 
of an existing item, and clarifications to the reporting instructions. 
The Federal Reserve proposes adding a new item that will require 
foreign banking organizations that are seeking to either establish or 
acquire control of an existing Edge corporation to furnish information 
relating to the supervision and regulation of the foreign banking 
organization by its home country supervisor, as well as information to 
allow the Federal Reserve to determine whether the foreign banking 
organization will be able to provide whatever information is deemed 
necessary to determine and enforce compliance with U.S. law. This is 
the same type of information that a foreign banking institution must 
provide (pursuant to the Foreign Bank Supervision Enhancement Act of 
1991) in order to acquire ownership or control of a subsidiary bank or 
commercial lending company or to establish a branch or agency in the 
United States. The Federal Reserve proposes that Attachment H require 
applicants seeking to engage in any activity that the Federal Reserve 
has not previously determined to be of a banking or financial nature to 
discuss the extent to which such activity is usual in connection with 
the transaction of banking or other financial operations in the country 
in which the activity is to be conducted, supported by examples. The 
proposed revision to item 2.f. would enable the Federal Reserve to 
determine whether a proposed new activity is usual in connection with 
the transaction of the business of banking or other financial 
operations abroad, as the Federal Reserve is required to do under 
section 211.5(d)(20) of Regulation K.
    Final approval under OMB delegated authority of the extension, 
without revision, of the following reports:
    1. Report title: Annual Daylight Overdraft Capital Report for U.S. 
Branches and Agencies of Foreign Banks
Agency form number: FR 2225
OMB Docket number: 7100-0216
Frequency: Annual
Reporters: U.S. branches and agencies of foreign banks
Annual reporting hours: 240
Estimated average hours per response: 1.0
Number of respondents: 240
Small businesses are not affected.
    General description of report: This information collection is 
voluntary (sections 11(i), 16, and 19(f) of the Federal Reserve Act). 
The FR 2225 is a public report subject to the right of individual 
reporters to request confidential treatment on an ad hoc basis for 
particular items.
    Abstract: This report was implemented in March 1986 as part of the 
procedures used to administer the Federal Reserve's Payments System 
Risk policy. The report provides the Federal Reserve with the foreign 
bank's worldwide capital figure which, in connection with a net debit 
cap multiple, is used to calculate the bank's daylight overdraft limit.
    Under the Federal Reserve's Payments System Risk policy, all 
institutions that maintain a Federal Reserve account are assigned or 
may establish a net debit cap that represents a maximum limit on 
daylight overdrafts incurred in that account on a single day or on 
average during a two-week maintenance period. The net debit cap is a 
multiple applied to the risk-based capital for a U.S.-chartered 
institution and to the consolidated U.S. capital equivalency for a U.S. 
branch or agency of a foreign bank.
    The FR 2225 report was designed to minimize the reporting burden 
for foreign banks by relying as much as possible on publicly available 
data regarding capital and by requiring most foreign banks to submit 
their capital and asset figures only once each year, within three 
months following the end of the bank's fiscal year. A bank may 
voluntarily submit the report more frequently to have their overdraft 
limit based on current data. However, the overdraft limit generally 
would be smaller for any bank that does not provide the requested 
information because the limit would be based on the imputed capital of 
the bank's U.S. branches and agencies.
    2. Report title: Report of Net Debit Cap
Agency form number: FR 2226
OMB Docket number: 7100-0217
Frequency: Annually
Reporters: Depository institutions, Edge and agreement corporations, 
and U.S. branches and agencies of foreign banks
Annual reporting hours: 2,250
Estimated average hours per response: 1.0
Number of respondents: 2,250
Small businesses are not affected.
    General description of report: This information collection is 
required (sections 11, 16, and 19 of the Federal Reserve Act) and is 
given confidential treatment (5 U.S.C. 552(b)(4)).
    Abstract: The Federal Reserve is concerned about the risks 
associated with critical payment systems. The Federal Reserve Banks are 
directly exposed to the risk of loss if a depository institution uses 
Federal Reserve intraday credit to settle Fedwire funds or book-entry 
securities transfer payments and is unable to repay the extension of 
credit. The Federal Reserve has adopted a payment system risk reduction 
policy that relies in part on the efforts of individual institutions to 
identify, control, and reduce their exposure. The Report of Net Debit 
Cap comprises one or more resolutions filed by an institution's board 
of directors.
    Under the Federal Reserve's Payments System Risk policy, all 
institutions that maintain a Federal Reserve account are assigned or 
may establish a net debit cap that represents a maximum limit on 
daylight overdrafts incurred in that account on a single day or on 
average during a two-week maintenance period. The net debit cap is a 
multiple applied to the risk-based capital for a U.S.-chartered 
institution and to the U.S. capital equivalency for a U.S. branch or 
agency of a foreign bank.
    3. Report title: Applications for the Issuance and Cancellation of 
Federal Reserve Stock--National Bank, Nonmember Bank, Member Bank
Agency form number: FR 2030, 2030a, 2056, 2086a, 2086b, and 2087
OMB Docket number: 7100-0042
Frequency: On occasion
Reporters: National, State Member and Nonmember Banks
Annual reporting hours: 942 (FR 2030: 43; FR 2030a: 29; FR 2056: 797; 
FR 2086a: 26; FR 2086b: 24; FR 2087: 23).
Estimated average hours per response: 0.5 (for each form)
Number of respondents: 1,881 (FR 2030: 86; FR 2030a: 57; FR 2056: 
1,594; FR 2086a: 52; FR 2086b: 47; FR 2087: 45).
Small businesses are affected.

[[Page 48993]]

    General description of report: This information collection is 
mandatory [12 U.S.C. Secs. 35, 222, 282, 287, 288, and 321 and 12 
C.F.R. Secs. 209.1, 209.3, 209.5(b), 209.6, 209.7, and 209.8] and is 
not given confidential treatment.
    Abstract: These Federal Reserve Bank stock application forms are 
required to be submitted to the Federal Reserve System by any national 
bank, state member bank, or state nonmember bank wanting to purchase 
stock in the Federal Reserve System, increase or decrease its Federal 
Reserve Bank stock holdings, or cancel such stock.
    National banks, chartered by the Comptroller of the Currency, are 
required to become members of the Federal Reserve System. State-
chartered commercial banks may elect to become members if they meet the 
requirements established by the Board of Governors of the Federal 
Reserve System. When a bank receives approval for membership in the 
Federal Reserve System, the bank agrees to certain conditions of 
membership which are contained in an approval letter sent to the bank 
by the Federal Reserve Bank in the District where the bank is located. 
In addition to the conditions of membership, the bank also is advised 
by the Reserve Bank that it must subscribe to the capital stock of the 
Federal Reserve Bank of its District in an amount equal to 6 percent of 
the bank's paid-up capital and surplus, including reserve for dividends 
payable in common stock, pursuant to Section 5 of the Federal Reserve 
Act and Regulation I. However, the bank is required to make payment for 
only 50 percent of the subscription, which is recorded as paid-in 
capital on the Reserve Bank's balance sheet. The remaining 50 percent 
is subject to call by the Board of Governors of the Federal Reserve 
System. On June 30, 1994, there were 4,160 Federal Reserve member 
banks, and their consolidated paid-in capital at the twelve Federal 
Reserve Banks was $3.5 billion.
    The applications are necessary in order to obtain account data on 
the bank's capital and surplus and to document its request to increase 
or decrease its holdings of Federal Reserve Bank stock. Another purpose 
of the applications is to verify that a request has been duly 
authorized and to prevent unauthorized requests for issuance or 
cancellation of Federal Reserve Bank stock. The applications are used 
exclusively by the applying banks and the Federal Reserve Banks. The 
information collected on the applications is not available from any 
other source.

    Board of Governors of the Federal Reserve System, September 15, 
1995.
William W. Wiles,
Secretary of the Board.
[FR Doc. 95-23386 Filed 9-20-95; 8:45AM]
Billing Code 6210-01-F