[Federal Register Volume 60, Number 250 (Friday, December 29, 1995)]
[Notices]
[Pages 67357-67359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31464]



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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:
    On June 15, 1984, the Office of Management and Budget (OMB) 
delegated to the Board of Governors of the Federal Reserve System 
(Board) its approval authority under the Paperwork Reduction Act of 
1995, as per 5 CFR 1320.16, to approve of and assign OMB control 
numbers to collection of information requests and requirements 
conducted or sponsored by the Board under conditions set forth in 5 CFR 
1320 Appendix A.1. The Federal Reserve may not conduct or sponsor, and 
the respondent is not required to respond to, an information collection 
that has been extended, revised, or implemented on or after October 1, 
1995, unless it displays a currently valid OMB control number. Board-
approved collections of information will be incorporated into the 
official OMB inventory of currently approved collections of 
information. A copy of the OMB 83-I and supporting statements and the 
approved collection of information instruments will be placed into 
OMB's public docket files. The following information collections, which 
are being handled under this delegated authority, have received initial 
Board approval and are hereby published for comment. At the end of the 
comment period, the proposed information collections, along with an 
analysis of comments and recommendations received, will be submitted to 
the Board for final approval under OMB delegated authority. Comments 
are invited on:
    (a) Whether the proposed collections of information are necessary 
for the proper performance of the Federal Reserve's functions; 
including whether the information has practical utility;
    (b) The accuracy of the Federal Reserve's estimate of the burden of 
the proposed information collections, including the validity of the 
methodology and assumptions used;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (d) Ways to minimize the burden of information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology.
DATES: Comments must be submitted on or before February 27,1996.
ADDRESSES: Comments, which should refer to the OMB control number (or

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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 M-P-500 between 9:00 a.m. and 5:00 
p.m., except as provided in section 261.8 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: A copy of the proposed form and 
instructions, the Paperwork Reduction Act Submission (OMB 83-I), 
supporting statement, and other documents that will be placed into 
OMB's public docket files once approved may be requested from the 
agency clearance officer, whose name appears below.
    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, DC 20551. Telecommunications 
Device for the Deaf (TDD) users may contact Dorothea Thompson (202-452-
3544), Board of Governors of the Federal Reserve System, Washington, DC 
20551.
    Proposal to approve under OMB delegated authority the extension, 
with revision, of the following reports:
    1. Report title: Report of Condition for Foreign Subsidiaries of 
U.S. Banking Organizations and Financial Information for Foreign 
Subsidiaries of U.S. Banking Organizations
Agency form number: FR 2314a, b and c
OMB control number: 7100-0073
Frequency: Quarterly and annually
Reporters: Foreign subsidiaries of U.S. banks, bank holding companies, 
and Edge and agreement corporations
Annual reporting hours: 5,459
Estimated average hours per response: 1.5 to 10.5
Number of respondents: 1,165
Small businesses are not affected.
    General description of report: This information collection is 
mandatory [12 U.S.C. 324, 602, 625 and 1824] and is given confidential 
treatment [5 U.S.C. 552(b)(8)].
    Abstract: The FR 2314 reports collect information annually from all 
direct or indirect foreign subsidiaries of U.S. member banks, bank 
holding companies, and Edge or agreement corporations. The FR 2314a 
collects information on assets, liabilities, contingent liabilities, 
and eleven supporting schedules, including income and expenses. The FR 
2314b collects the same information on assets, liabilities, contingent 
liabilities, and income and expenses. The FR 2314c collects information 
on total assets, equity capital, off-balance-sheet items, and net 
income. Subsidiaries with significant asset size or volume of foreign 
exchange trading report the FR 2314a quarterly.
    The data are used to monitor the growth and activities of the 
subsidiaries and to supervise the overall operation of the parent 
organization. Revisions are proposed to make the FR 2314 reports more 
consistent with the parent organizations' reports of condition and 
income and to improve the Federal Reserve's surveillance of overseas 
banking operations. The proposed revisions would be effective as of the 
December 31, 1995, reporting date. The due date for filing the revised 
reports would be extended, as appropriate, based on the date of final 
Board approval. Following this approval, respondents would be informed 
of the rescheduled due date.
    The Federal Reserve proposes several changes to the FR 2314a and FR 
2314b reports, summarized as follows.
    (1) Revise the reporting criteria for filing the FR 2314a and the 
FR 2314b. Currently subsidiaries file the FR 2314a quarterly if they 
have total assets of at least $2 billion or commitments to purchase 
foreign currencies and U.S. dollar exchange of at least $5 billion. The 
instruction would be revised to include subsidiaries that have at least 
$5 billion in off-balance-sheet activity measured by the sum of 
commitments to purchase foreign currencies and U.S. dollar exchange, 
all other futures and forwards contracts, written option contracts, 
purchased option contracts, notional value of interest rate swaps, 
notional value of exchange swaps, and the notional value of other 
swaps. In addition the reporting criteria for filing the FR 2314a on an 
annual basis would be raised to include respondents with total assets 
greater than $250 million, up from $100 million. Subsidiaries with 
total assets of $50 million or more but not more than $250 million 
would file the FR 2314b.
    (2) Additions to allow for compliance with Financial Accounting 
Board (FASB) Statement No. 115. Subsidiaries would report a new 
schedule for securities that would provide information on available-
for-sale securities and held-to-maturity securities, and new items to 
collect information on the net unrealized holding gains (losses) on 
available-for-sale securities and information on the change in net 
unrealized holding gains (losses) in available-for-sale securities.
    (3) Additions to allow for compliance with FASB Interpretation 
Number (FIN) 39. Subsidiaries would report new items for
    (a) trading liabilities,
    (b) assets held in trading accounts, and
    (c) revaluation gains on interest rate, foreign exchange rate, and 
other commodity and equity contracts.
    (4) Additions to capture income from trading account activity. 
Subsidiaries would report new items for
    (a) interest income and dividends form assets held in trading 
accounts, and
    (b) gains (losses) and fees from trading assets and liabilities.
    (5) Deletions of selected items. Subsidiaries would no longer 
report the items for
    (a) dividends on stock,
    (b) cash dividends declared reported on Schedule I, and
    (c) net retained income. Dividend on stock would be added to the 
item for interest on bonds, notes, and debentures.
    2. Report title: Report of Changes in Investments (Made Pursuant to 
Subparts A and C of Regulation K)
Agency form number: FR 2064
OMB control number: 7100-0109
Frequency: On occasion
Reporters: U.S. member banks, bank holding companies, and Edge and 
agreement corporations
Annual reporting hours: 1,200
Estimated average hours per response: 0.75
Number of respondents: 50
Small businesses are not affected.
    General description of report: This information collection is 
mandatory [12 U.S.C. 602, 625 and 1844] and is given confidential 
treatment [5 U.S.C. 552(b)(4)].
    Abstract: Member banks, Edge and agreement corporations, and bank 
holding companies are required to file the FR 2064 to record changes in 
their international investments. Sections 25 and 25A of the Federal 
Reserve Act (FRA) and Sections 4(c)(13) and 4(c)(14) of the Bank 
Holding Company Act govern the formation of Edge and agreement 
corporations and export trading companies and the international 

[[Page 67359]]
and foreign activities of U.S. banking organizations, including those 
of national banks, state member banks, Edge and agreement corporations, 
and bank holding companies. Pursuant to these statutory provisions, the 
Board adopted various regulatory provisions, all of which were 
consolidated in the Board's Regulation K, setting forth the procedures 
for making investments and engaging in activities under these statutes. 
Investments made under these procedures are reported on the FR 2064 
whenever the reporting criteria are met. The FR 2064 report is filed no 
later than the last day of the month following the month in which the 
reportable investment occurred.
    Under the proposed revisions, the FR 2064 would be enlarged from 
eight to thirteen items and portions of four existing items would be 
expanded. The reporting threshold for material investments would be 
increased from $100,000 to $1 million and the basis of the threshold 
would change from the historical cost of the reporter's investment in 
the investee to the total cost. Other proposed changes would request 
information on investments made by U.S. and foreign banking 
organizations in Edge and agreement corporations and export trading 
companies and on substantive changes in the activities of a company in 
which an investment has been made. In addition, reports would be 
required when the activity of the investee changes and when there is a 
change in the percentage of the investee's voting rights held by its 
direct parent or in the percentage of the investee's equity held by the 
reporting organization. In addition, minor clarifying changes would be 
made to the report and instructions. The proposed revisions will enable 
the Federal Reserve to more fully and accurately monitor compliance 
with the Federal Reserve Act, the Bank Holding Company Act, and the 
relevant sections of Regulation K. The net effect of the proposed 
revisions to the FR 2064 on reporting burden will be to increase the 
annual burden for this report by 450 hours, or 60 percent. The revised 
FR 2064 report and instructions would be implemented as of March 31, 
1996.

    Board of Governors of the Federal Reserve System, December 22, 
1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-31464 Filed 12-28-95; 8:45am]
BILLING CODE 6210-01-F