[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