[Federal Register Volume 60, Number 199 (Monday, October 16, 1995)]
[Proposed Rules]
[Pages 53546-53548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25403]
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FEDERAL RESERVE SYSTEM
12 CFR Chapter II
[Docket No. R-0898]
Section 303 Regulatory Review Timetable
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Schedule for review of regulations.
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SUMMARY: The Board of Governors of the Federal Reserve System (the
Board) is publishing a schedule for review of its major regulations,
policy statements, and other regulatory guidance pursuant to the
requirements of section 303 of the Riegle Community Development and
Regulatory Improvement Act of 1994 (Section 303). The timetable should
enable interested parties to comment meaningfully at various points in
the review process, including providing suggestions for the development
of regulatory proposals for comment. Any comments received will be
considered during the course of the individual reviews listed below.
Several major regulatory reviews are currently pending before the
Board, and these also are set forth in the notice. The Board has
already undertaken various measures since the passage of Section 303 to
fulfill its mandate to streamline and improve the Board's regulations
and policies, as well as to work jointly with the other Federal banking
agencies to make uniform regulations and guidelines implementing common
statutory and supervisory policies.
DATES: Comments may be submitted until further notice.
ADDRESSES: Comments should refer to Docket No. R-0898, and may be
mailed to William W. Wiles, Secretary, Board of Governors of the
Federal Reserve System, 20th and C Streets, N.W., Washington, D.C.
20551. Comments also may be delivered to Room B-2222 of the Eccles
Building between 8:45 a.m. and 5:15 p.m. weekdays, or to the guard
station in the Eccles Building courtyard on 20th Street, N.W. (between
Constitution Avenue and C Street) at any time. Comments received will
be available for inspection in Room MP-500 of the Martin Building
between 9:00 a.m. and 5:00 p.m. weekdays, except as provided in 12 CFR
261.8 of the Board's
[[Page 53547]]
rules regarding the availability of information.
FOR FURTHER INFORMATION CONTACT: Thomas A. Durkin, Regulatory Planning
and Review Director, Office of the Secretary (202/452-3236); Stephen M.
Lovette, Manager, Policy Implementation Section, Division of Banking
Supervision and Regulation (202/452-3622); Jane Ahrens, Senior
Attorney, Division of Consumer and Community Affairs (202/452-3667); or
Michael J. O'Rourke, Senior Attorney, Legal Division (202/452-3288);
for the hearing impaired only, contact Dorothea Thompson,
Telecommunications Device for the Deaf (TDD) (202/452-3544), Board of
Governors of the Federal Reserve System, 20th Street and Constitution
Avenue, NW., Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
Background
Section 303(a)(1) of the Riegle Community Development and
Regulatory Improvement Act of 1994 requires that each Federal banking
agency shall, consistent with the principles of safety and soundness,
statutory law and policy, and the public interest:
(1) Conduct a review of the regulations and written policies of
that agency to--
(A) Streamline and modify those regulations and policies in
order to improve efficiency, reduce unnecessary costs, and eliminate
unwarranted constraints on credit availability;
(B) Remove inconsistencies and outmoded and duplicative
requirements; and
(C) With respect to regulations prescribed pursuant to section
18(o) of the Federal Deposit Insurance Act [real estate lending
standards], consider the impact that such standards have on the
availability of credit for small business, residential, and
agricultural purposes, and on low- and moderate-income communities;
(2) Work jointly with the other Federal banking agencies to make
uniform all regulations and guidelines implementing common statutory
or supervisory policies; and
(3) Submit a joint report to the Congress at the end of such 2-
year period [September 23, 1996] detailing the progress of the
agencies in carrying out [these provisions].
12 U.S.C. 4803(a)(1)
There are several aspects to section 303's regulatory review
mandate. The first comprises an internal review of the Board's own
regulations and written policies for purposes of streamlining,
improving efficiency, reducing unnecessary costs, and removing
inconsistencies and outmoded/duplicative requirements. The second
aspect requires that the Board work jointly with the other banking
agencies to render uniform regulations and guidelines implementing
common statutory and supervisory policies. Finally, the Board and the
other banking agencies must report to the Congress, by September 23,
1996, on the progress they have made under Section 303.
The Board has placed a high priority on, and will devote
considerable resources to, fulfillment of section 303's mandate. To
that end, the Board has assembled a staff team for each of its
regulations and guidelines for purposes of its internal reviews for
streamlining and efficiency purposes, and those teams have commenced
their reviews. In that regard, major reviews of several Board
regulations are already in process. These include, among others,
Regulation T (securities credit); Regulation E (electronic funds
transfers); Regulation M (consumer leasing); and Regulation K, Subpart
A (investments by foreign banking organizations in U.S. subsidiaries).
In addition, the Board proposes to undertake comprehensive reviews
of several additional major regulations within the next two years.
These include: Regulation H (membership in the Federal Reserve System);
Regulation K, generally (international banking operations); and
Regulation Y (bank holding companies and change in bank control). Other
reviews of general interest are listed on the schedule of Board
regulatory reviews appearing below.
The Board has already taken several steps to ease regulatory burden
on the banking industry and the public since the inception of Section
303. In that regard, the Board has:
(1) Simplified and expedited procedures under Regulation Y for
applications and notices;
(2) Eased anti-tying restrictions to allow beneficial discount
arrangements for bank products;
(3) Eliminated an entire class of non-control determinations
under section 2(g)(3) of the Bank Holding Company Act;
(4) Eased branching interpretations regarding loan production
offices; and
(5) Revised the Community Reinvestment Act regulations to
emphasize performance, promote consistency in evaluations, and
eliminate unnecessary burden.
In all, the Board has undertaken over 20 separate measures since
the passage of section 303 to reduce burden and simplify its
regulations, written policies, and procedures. In addition, the Board
has several proposals out for comment which will further these efforts,
including a recent proposal to expand the general consent authority
under Regulation K regarding certain foreign investments by U.S.
banking organizations. The Board views section 303 as an opportunity to
continue these efforts on a comprehensive internal and interagency
basis.
In connection with section 303, the Board contemplates a
comprehensive review of all of its regulations and written policies,
including policy statements, Board interpretations, miscellaneous
materials in the Federal Reserve Regulatory Service (F.R.R.S.),
Supervisory (SR) Letters, and the like. For example, Board staff will
review well over 500 SR Letters, a substantial number of which can be
eliminated as obsolete and the remainder streamlined, updated and
combined. For some of these items, such as the Board's regulations and
policy statements, the Board intends to seek public comment during the
course of their individual reviews. To this end, the Board is
publishing below a schedule of the major regulatory reviews over the
next several years. All of the Board's regulations, policy statements
and other regulatory guidance will be reviewed, and additional
individual items will be put out for public comment.
It is hoped that, by providing this schedule, commenters will have
the ability to address significant regulatory issues in an orderly and
focused fashion, including providing suggestions regarding regulatory
proposals for comment. For individual items on which the Board may
determine not to seek public comment, such as reviews of administrative
SR Letters or informal staff interpretations, the Board proposes to
conduct an internal assessment to identify guidance that may be
inconsistent with, or rendered obsolete by, the Board's current
policies, and update or delete them as appropriate. Information about
any and all Board 303 reviews may be obtained from the Board staff
members listed in this notice.
Interested parties have already submitted some comments to the
Board regarding its regulations, interpretations and procedures under
the impetus of Section 303, and the Board will carefully consider these
comments in the course of the appropriate individual reviews. The Board
continues to welcome comments prompted by Section 303.
[[Page 53548]]
Federal Reserve Board Tentative Schedule of Selected Regulatory Reviews Under Section 303
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Regulation/policy statement/other regulatory
guidance Description Target review dates \1\
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Reg. E, 12 CFR Part 205..................... Electronic Fund Transfers 2nd Half 1995.
(stored value cards, home
banking, etc.).
Reg. H, 12 CFR 208.23....................... Loans in Areas Having Special 2nd Half 1995.
Flood Hazards.
Reg. K, 12 CFR 211.5, 211.22, 211.__........ International Banking 2nd Half 1995.
Operations: Representative
Office Rules; General Consent
Authority; Management of Shell
Branches; Subpart B Interstate/
Bank Merger Rules.
Reg. U, 12 CFR Part 221..................... Credit by Banks for the Purpose 2nd Half 1995.
of Purchasing or Carrying
Margin Stock.
Reg. D, 12 CFR Part 204..................... Reserve Requirements of 1st Half 1996.
Depository Institutions.
Reg. G, 12 CFR Part 207..................... Securities Credit by Persons 1st Half 1996.
Other Than Banks, Brokers, or
Dealers.
Reg. O, 12 CFR Part 215..................... Loans to Executive Officers, 1st Half 1996.
Directors, and Principal
Shareholders of Member Banks.
Reg. R, 12 CFR Part 218..................... Relationships with Dealers in 1st Half 1996.
Securities Under Section 32 of
the Banking Act of 1933.
4 F.R.R.S. 9-1000........................... Payments System Risk Policy.... 1st Half 1996.
Reg. L, 12 CFR Part 212..................... Management Official Interlocks. 1st Half 1996.
Reg. AA, 12 CFR Part 227.................... Unfair or Deceptive Acts or 1st Half 1996.
Practices.
Reg. Y, 12 CFR Part 225, All Provisions..... Bank Holding Companies and 1st Half 1996.
Change in Bank Control.
Reg. X, 12 CFR Part 224..................... Borrowers of Securities Credit. 1st Half 1996.
Reg. CC, 12 CFR Part 229.................... Availability of Funds and 1st Half 1996.
Collection of Checks.
SR Letters (126)............................ SR Letters on Securities 1st Half 1996.
Activities and SR Letters That
Are Potentially Obsolete.
Reg. H, 12 CFR Part 208, All Provisions..... Membership of State Banking 2nd Half 1996.
Institutions in the Federal
Reserve System.
Reg. H, Reg. Y, Appendices.................. Capital Adequacy Guidelines.... 2nd Half 1996.
Reg. K, 12 CFR Part 211, All Provisions..... International Banking 2nd Half 1996.
Operations (Overall
Comprehensive Review).
Reg. B, 12 CFR Part 202..................... Equal Credit Opportunity....... 2nd Half 1996.
Reg. C, 12 CFR Part 203..................... Home Mortgage Disclosure....... 2nd Half 1996.
SR Letters (117)............................ SR Letters on Foreign 2nd Half 1996.
Supervision, Foreign and
Domestic Applications
Processing, Enforcement
Activities, Trust Activities,
Real Estate Lending Standards,
Appraisal Standards, and
Accounting Issues.
Reg. Z, 12 CFR Part 226..................... Truth in Lending............... 1st Half 1997.
SR Letters (62)............................. SR Letters on Supervisory 1st Half 1997.
Examinations and Prompt
Corrective Action.
Reg. DD, 12 CFR Part 230.................... Truth in Savings............... 2nd Half 1998.
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\1\ Target Review Dates: Generally, target range to seek public comment. A review of the Board's SR Letters is
currently in process and the target ranges for SR Letters reflect those times by which staff expects to
complete the reviews.
By order of the Board of Governors of the Federal Reserve
System, October 10, 1995.
William W. Wiles,
Secretary of the Board.
[FR Doc. 95-25403 Filed 10-13-95; 8:45 am]
BILLING CODE 6210-01-P