[Federal Register Volume 62, Number 63 (Wednesday, April 2, 1997)]
[Notices]
[Pages 15706-15711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8357]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Submission to OMB Under 
Delegated Authority

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 CFR 
1320.16 (OMB Regulations on Controlling Paperwork Burdens on the 
Public). 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,

[[Page 15707]]

1995, unless it displays a currently valid OMB control number.

FOR FURTHER INFORMATION CONTACT: Robert T. Maahs, Supervisory Financial 
Analyst (202/872-4935) or Tina Robertson, Supervisory Financial Analyst 
(202/452-2949) for information concerning the specific bank holding 
company reporting requirements. The following may also be contacted 
regarding the information collection:

1. Chief, Financial Reports Section--Mary M. McLaughlin--Division of 
Research and Statistics, Board of Governors of the Federal Reserve 
System, Washington, DC 20551 (202-452-3829)
2. OMB Desk Officer--Alexander T. Hunt--Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 3208, Washington, DC 20503 (202-395-7860)

SUPPLEMENTARY INFORMATION:

General Information

    On December 30, 1996, the Board issued for public comment proposed 
revisions to certain bank holding company reports. The comment period 
expired on February 28, 1997. Three comment letters were received. None 
of the commenters addressed any specific issues relating to the current 
proposal. Two of the commenters generally were concerned with the 
amount of regulatory reporting burden imposed by the Y-9 and Y-11 
series of reports and stated that the Federal Reserve should allow 
exemptions from reporting for institutions that meet certain criteria. 
These standardized reports are the primary source of financial 
information on bank holding companies and their non-banking 
subsidiaries. The Federal Reserve recognizes that there are costs 
associated with completing regulatory reports, and attempts to minimize 
reporting burden whenever possible without neglecting its 
responsibility of off-site supervision.
    Another commenter stated that the Federal Reserve should consider 
eliminating inconsistencies between its form-and-content requirements 
for filings by bank holding companies and those of Article 9 of the 
U.S. Securities and Exchange Commission's Regulation S-X. The Federal 
Reserve believes that the filing of financial statements by bank 
holding companies is generally consistent with the requirements of 
Article 9 of Regulation S-X. However, minor differences may exist due 
to the standardized nature of these reports. In addition, more detailed 
disclosure of certain account balances may be required for analytical 
and supervisory purposes.
    Under the Bank Holding Company Act of 1956, as amended, the Board 
is responsible for the supervision and regulation of all bank holding 
companies. The FR Y-9 and FR Y-11 series of reports historically have 
been, and continue to be, the primary source of financial information 
on bank holding companies and their nonbanking activities between on-
site inspections. Financial information, as well as ratios developed 
from these reports, are used to detect emerging financial problems, to 
review performance for pre-inspection analysis, to evaluate bank 
holding company mergers and acquisitions, and to analyze a holding 
company's overall financial condition and performance as part of the 
Federal Reserve System's overall supervisory responsibilities.

Final Approval Under OMB Delegated Authority of the Revision of the 
Following Reports:

1. Report Title: Consolidated Financial Statements for Bank Holding 
Companies
    Agency form number: FR Y-9C.
    OMB control number: 7100-0128.
    Frequency: Quarterly.
    Reporters: Bank holding companies.
    Annual reporting hours: 188,682.
    Estimated hours per response: Range from 5 to 1,250 hours.
    Number of respondents: 1,389.
    Small businesses are affected.
    General description of report: The information collection is 
mandatory 12 U.S.C. 1844(b) and (c) and 12 CFR 225.5(b). Confidential 
treatment is not routinely given to the data in these reports. However, 
confidential treatment for the reporting information, in whole or in 
part, can be requested in accordance with the instructions to the form.
    Data reported on the FR Y-9C, Schedule HC-H, Column A, requiring 
information on ``assets past due 30 through 89 days and still 
accruing'' and memoranda item 2 are confidential pursuant to Section 
(b)(8) of the Freedom of Information Act 5 U.S.C. 552(b)(8).
    The FR Y-9C consolidated financial statements are currently filed 
by top-tier bank holding companies with total consolidated assets of 
$150 million or more and by lower-tier bank holding companies that have 
total consolidated assets of $1 billion or more. In addition, all 
multibank bank holding companies with debt outstanding to the general 
public or engaged in certain nonbank activities, regardless of size, 
must file the FR Y-9C. The following bank holding companies are exempt 
from filing the FR Y-9C, unless the Board specifically requires an 
exempt company to file the report: bank holding companies that are 
subsidiaries of another bank holding company and have total 
consolidated assets of less than $1 billion; bank holding companies 
that have been granted a hardship exemption by the Board under section 
4(d) of the Bank Holding Company Act; and foreign banking organizations 
as defined by section 211.23(b) of Regulation K.
    The report includes a balance sheet, income statement, and 
statement of changes in equity capital with supporting schedules 
providing information on securities, loans, risk-based capital, 
deposits, average balances, off-balance sheet activities, past due 
loans, and loan charge-offs and recoveries.
    Most of the proposed new items are needed to maintain consistency 
with comparable items recently proposed or previously added to the 
commercial bank Reports of Condition and Income (Call Report; FFIEC 
031-034; OMB No. 7100-0036). The proposed revisions to the FR Y-9C 
consist of combining or eliminating several line items, revising the 
reporting for assets sold with recourse, implementing Financial 
Accounting Standards Board Statement Number 125, ``Accounting for 
Transfers and Servicing of Financial Assets and Extinguishments of 
Liabilities,'' for reporting transfers and servicing of financial 
assets, and adding the reporting of credit derivative instruments. The 
result of these revisions will be a net reduction of fourteen reporting 
items on the FR Y-9C. The proposed revisions do not include Call Report 
changes that were proposed by the Federal Financial Institutions 
Examination Council to improve the monitoring of interest rate risk 
exposures.
    The Federal Reserve is attempting to minimize reporting burden by 
making appropriate reporting revisions in a manner consistent with the 
Call Report and effective with the same reporting period. Such 
revisions and clarifications to existing instructions have been 
incorporated into this report. Furthermore, additional clarifications 
to the existing intructions will be made in future reporting periods, 
as appropriate, upon review of the final Call Report instructions.
    The Federal Reserve has approved the following revisions to the FR 
Y-9C, as previously proposed, that are effective with the March 31, 
1997, reporting date:

[[Page 15708]]

Revisions To Parallel Proposed Call Report Changes

    (1) Schedule HC--Consolidated Balance Sheet:
    (a) Items 3.a and 3.b, ``Federal funds sold'' and ``Securities 
purchased under agreements to resell,'' will be combined into a single 
item (item 3). In addition, this single Schedule HC item will be 
reported on a fully consolidated basis, rather than including only the 
domestic offices of the bank holding company, the domestic offices of 
the bank holding company's Edge and Agreement subsidiaries, and IBFs. 
Corresponding changes will be made to Schedule HC-E--Quarterly 
Averages, item 2, and Schedule HI--Income Statement, item 1.f.
    (b) Items 14.a and 14.b, ``Federal funds purchased'' and 
``Securities sold under agreements to repurchase,'' will be combined 
into a single item (item 14). In addition, this single Schedule HC item 
will be reported on a fully consolidated basis, rather than including 
only the domestic offices of the bank holding company, the domestic 
offices of the bank holding company's Edge and Agreement subsidiaries, 
and IBFs. Corresponding changes will be made to Schedule HC-E--
Quarterly Averages, item 8, and Schedule HI--Income Statement, item 
2.b.
    (c) Item 19, ``Mortgage indebtedness and obligations under 
capitalized leases,'' will be combined, as appropriate, with items 17 
and 18, ``Other borrowed money.'' In addition, a corresponding change 
in definition will be made to Schedule HC-E--Quarterly Averages, item 
9, ``All other borrowed money,'' to include mortgage indebtedness and 
obligations under capitalized leases.
    (d) Item 26, ``Limited-life preferred stock (including related 
surplus),'' will be combined with existing item 21, ``Subordinated 
notes and debentures.'' In addition, the following revisions will be 
made that relate to limited-life preferred stock: (1) Schedule HC-E--
Quarterly Averages, item 10, ``Limited-life preferred stock,'' will be 
deleted. (2) Schedule HI-A--Changes in Equity Capital, item 9, ``LESS 
Cash dividends declared on limited-life preferred stock,'' will be 
combined with item 8, ``LESS cash dividends declared on perpetual 
preferred stock,'' and the caption for item 8 will be revised to ``LESS 
cash dividends declared on preferred stock.'' (3) Schedule HI-A--
Changes in Equity Capital, memorandum item 1, ``Sale of limited-life 
preferred stock,'' will be deleted.
    (2) Schedule HC-A--Securities:
    (a) Memorandum item 3, ``Held-to-maturity debt securities 
restructured and in compliance with modified terms (included in 
Schedule HC-A, items 3.a, 3.b, 4.a, and 5.a, column A),'' will be 
deleted. In addition, memorandum item 3.a, ``Held-to-maturity debt 
securities restructured and in compliance with modified terms if the 
restructured obligation yielded a market rate at the time of 
restructuring (included in Schedule HC-A, item M.3),'' will be deleted.
    (b) Memorandum items 9.a and 9.b, ``Investments in mutual funds'' 
and ``Other equity securities with readily determinable fair values,'' 
will be combined into a single item (memorandum item 9.a).
    (3) Schedule HC-B, Part I--Loans and Lease Financing Receivables: 
Memorandum item 4, ``Commercial paper included in loans (Part 1, items 
1-8 above),'' will be deleted. In addition, the instructions will be 
revised to indicate that commercial paper should no longer be reported 
as a loan in Schedule HC-B, but should be reported as a security in the 
FR Y-9C, Schedule HC-A, normally in item 4.a, ``U.S. debt securities,'' 
or item 5.a, ``Foreign debt securities.''
    (4) Schedule HC-F--Off-Balance-Sheet Items:
    (a) Part II, items 1.a and 1.b, ``Gross commitments to purchase'' 
and ``Gross commitments to sell'' when-issued securities, will be 
eliminated as separate items, but these commitments will continue to be 
reported in Schedule HC-F. Bank holding companies generally will report 
their when-issued commitments as off-balance-sheet derivative contracts 
in Part III, items 1 through 4. The notional amount of these 
commitments will be included in Part III, item 1.b, ``Forward 
contracts,'' generally in column A, ``Interest rate contracts,'' and in 
Part III, items 2 and 3 based on their purpose. The fair values of 
these commitments will be reported in Part III, item 4. However, bank 
holding companies that do not include these commitments as part of 
their disclosures about off-balance-sheet derivatives for other 
financial reporting purposes will be permitted to report such 
commitments in Part II, item 7, ``Other significant off-balance-sheet 
items.'' Each of these items will be subject to the existing reporting 
thresholds. The Glossary entry for ``when-issued securities 
transactions'' will be revised accordingly.
    (b) Part II, item 5, ``Assets sold with recourse,'' will be 
revised. Existing items 5(a)(1) and 5(a)(2) will be combined into a 
single item 5(a)(1), the outstanding principal balance of first lien 1-
to-4 family residential mortgages transferred with recourse; and 
proposed item 5(a)(2) will collect the amount of retained recourse 
exposure on balances collected in item 5(a)(1). Similarly, existing 
items 5.c. and 5.d. will be combined into a single item 5(b)(1), the 
amount of other financial assets (excluding small business obligations) 
that have been transferred with recourse; and proposed item 5(b)(2) 
will collect the amount of retained recourse exposure on balances 
collected in item 5(b)(1). Existing item 5(b)(1), ``Small business 
obligations sold with recourse,'' and 5(b)(2), ``Amount of recourse 
retained on small business obligations sold,'' will be retained and 
renumbered as items 5(c)(1) and 5(c)(2), respectively. In addition, the 
captions for revised items 5(c)(1) and 5(c)(2) will be expanded for 
clarity.
    (c) Two items will be added (these new items will be reported in 
Part II, items 1.a and 1.b) in order to identify the extent of 
involvement by bank holding companies and their consolidated 
subsidiaries in credit derivative instruments. The first item (item 
1.a) will be for the notional amount of all credit derivatives on which 
the reporting bank holding company or any of its consolidated 
subsidiaries is the guarantor. The second item (item 1.b) will be for 
the notional amount of all credit derivatives on which the reporting 
bank holding company or any of its consolidated subsidiaries is the 
beneficiary.
    (5) Schedule HC-G--Memoranda:
    (a) Item 16.a, ``Securities purchased under agreements to resell 
netted against securities sold under agreements to repurchase on 
Schedule HC,'' will be given its own line item and moved to the main 
body of Schedule HC-G. This item will be renumbered 7.b and existing 
item 7, ``Amount of cash items in process of collection netted against 
deposit liabilities in reporting Schedule HC,'' will be renumbered 7.a.
    (b) Item 18, ``Excess residential mortgage servicing fees 
receivable,'' will be revised in response to FASB Statement No. 125 to 
refer to interest-only strips receivable. This item will be renumbered 
as item 18.a and revised to report all mortgage related interest-only 
strips receivable. A new item 18.b will be added for the reporting of 
interest-only strips receivable on all other financial assets. 
Consistent with FASB Statement No. 125, these strips receivable will be 
measured at fair value like available-for-sale securities. In addition, 
the term ``mortgage servicing rights'' will be revised to read 
``mortgage servicing assets'' on Schedule HC--Consolidated Balance 
Sheet, and

[[Page 15709]]

Schedule HC-I--Risk-Based Capital, to conform with the nomenclature of 
FASB Statement No. 125.
    (c) A new item (item 22) will be added to this schedule for ``Net 
unamortized realized deferred gains (losses) on off-balance-sheet 
derivative contracts included in assets and liabilities reported in 
Schedule HC.'' For available-for-sale securities reported on the 
balance sheet at fair value, this new item will include any deferred 
gains (losses) that are part of the amortized cost basis of such 
securities.
    (6) Schedule HC-IC--Additional Detail on Capital Components: The 
separate maturity distributions for items 3.a through 3.f, 
``Intermediate preferred stock with an original weighted average 
maturity of 5 years or more; subordinated debt with an original 
weighted average maturity of 5 years or more; or unsecured long-term 
debt issued by BHC prior to March 12, 1988 that qualified as secondary 
capital when issued'' will be replaced by a single item (new item 3) 
for the qualifying portion of each of these types of capital components 
that is included in Tier 2 capital.
    (7) Schedule HI--Income Statement:
    (a) Items 2(a)(1)(a) and 2(a)(1)(b) will be revised to collect 
interest expense in domestic offices on ``Time deposits of $100,000 or 
more'' and ``Time deposits of less than $100,000,'' respectively. Item 
2(a)(1)(c), ``Interest on other deposits,'' will remain.
    (b) In order to remain consistent with the revision to Schedule HC 
noted above, interest expense on mortgage indebtedness and obligations 
under capitalized leases, which is currently reported in item 2.e, 
``Other interest expense,'' will be reported in item 2.c, ``Interest on 
borrowed funds (excluding subordinated notes and debentures).''
    (c) Item 5.d, ``Other foreign transaction gains (losses),'' will be 
eliminated. Bank holding companies will now report these net gains 
(losses) consistently as part of either item 5.e, ``Other noninterest 
income,'' or item 7.c, ``Other noninterest expense.'' If the amount of 
``Other foreign transaction gains (losses)'' is among the three largest 
amounts exceeding 10 percent of the amount reported in either item 5.e 
or 7.c, it will be itemized and described in either Memorandum item 6.c 
or 7.

Other Revisions Not Related to Call Report Changes

    (1) Schedule HC--Consolidated Balance Sheet: Expand the caption of 
existing line item 23 to read ``Minority interest in consolidated 
subsidiaries and similar items'' and renumber the line item to 24. 
Existing line item 24, ``Other liabilities,'' will be moved and 
renumbered to item 23. In addition, the caption for existing line item 
25 will be expanded to read ``Total liabilities and minority 
interest.''
    (2) Schedule HC-E--Quarterly Averages: The reference above Schedule 
HC-E that reads ``Multibank holding companies with total consolidated 
assets of less than $150 million are not to complete Schedule HC-E'' 
will be deleted. All bank holding companies that complete the FR Y-9C 
must complete Schedule HC-E.
    (3) Schedule HC-IC--Additional Detail on Capital Components: A new 
line item will be added to report the amount of cumulative preferred 
stock instruments issued out of subsidiaries, including special purpose 
subsidiaries, that are eligible for Tier 1 capital. Such instruments 
include securities that may be generically referred to as trust 
preferred securities. The new line item will be numbered 1(a)(3) and 
the caption will read: ``Cumulative preferred stock reported in 
minority interest in consolidated subsidiaries and similar items on 
Schedule HC.''
    (4) Schedule HC-J--Risk-Based Capital Excluding Securities 
Affiliates: Two new line items, ``Tier 1 capital'' and ``Total risk-
based capital,'' will be added to Part II and numbered as memorandum 
items 3 and 4, respectively. The caption for existing memorandum item 
3, will be abbreviated to ``Average total assets'' and renumbered to 
memorandum item 6. Existing memorandum item 4, ``Total risk-weighted 
assets,'' will be renumbered to memorandum item 5.
    (5) Schedule HI-A--Changes in Equity Capital: Memorandum item 2, 
``Sale of equity commitment notes,'' and memorandum item 3, ``Sale of 
equity contract notes,'' will be deleted.
2. Report Title: Parent Company Only Financial Statements for Large 
Bank Holding Companies
    Agency form number: FR Y-9LP.
    OMB control number: 7100-0128.
    Frequency: Quarterly.
    Reporters: Bank holding companies.
    Annual reporting hours: 30,819.
    Estimated hours per response: Range from 2.0 to 13.5 hours.
    Number of respondents: 1,716.
    Small businesses are affected.
    General description of report: The information collection is 
mandatory 12 U.S.C. 1844 (b) and (c) and 12 CFR 225.5(b). Confidential 
treatment is not routinely given to the information in these reports. 
However, confidential treatment for the report information, in whole or 
in part, can be requested in accordance with the instructions to the 
form.
    The FR Y-9LP includes standardized financial statements filed 
quarterly on a parent company only basis from each bank holding company 
that files the FR Y-9C. In addition, for tiered bank holding companies, 
a separate FR Y-9LP must be filed for each lower tier bank holding 
company if the top tier bank holding company files the FR Y-9C. The 
following bank holding companies are exempt from filing the FR Y-9LP, 
unless the Board specifically requires an exempt company to file the 
report: bank holding companies that have been granted a hardship 
exemption by the Board under section 4(d) of the Bank Holding Company 
Act; and foreign banking organizations as defined by section 211.23(b) 
of Regulation K.
    The Federal Reserve has approved the following revisions to the FR 
Y-9LP to maintain consistency with the revisions made to the FR Y-9C, 
and are effective with the March 31, 1997, reporting date:
    (1) Schedule PC--Parent Company Only Balance Sheet:
    (a) The term ``mortgage servicing rights'' will be revised to read 
``mortgage servicing assets'' on line item 7.a to conform with the 
nomenclature of FASB Statement No. 125.
    (b) Item 19, ``Limited-life preferred stock (including related 
surplus),'' will be combined with existing item 16, ``Subordinated 
notes and debentures.''
3. Report Title: Parent Company Only Financial Statements for Small 
Bank Holding Companies
    Agency form number: FR Y-9SP.
    OMB control number: 7100-0128.
    Frequency: Semiannual.
    Reporters: Bank holding companies.
    Annual reporting hours: 32,295.
    Estimated hours per response: Range from 1.5 to 6.0 hours.
    Number of respondents: 4,306.
    Small businesses are affected.
    General description of report: The information collection is 
mandatory 12 U.S.C. 1844 (b) and (c) and 12 CFR 225.5(b). Confidential 
treatment is not routinely given to the information in these reports. 
However, confidential treatment for the report information, in whole or 
in part, can be requested in accordance with the instructions to the 
form.
    The FR Y-9SP is a parent company only financial statement filed by 
one-bank holding companies with total consolidated assets of less than 
$150 million on a semiannual basis. This report, an abbreviated version 
of the more extensive FR Y-9LP, is designed to obtain basic balance 
sheet and income statement information,

[[Page 15710]]

information on intercompany transactions, and data for capital adequacy 
evaluation.
    The Federal Reserve has approved the following revision to the FR 
Y-9SP, as previously proposed, to maintain consistency with the 
revisions made to the FR Y-9C, that is effective with the June 30, 
1997, reporting date:
    (1) Balance Sheet: Item 15, ``Limited-life preferred stock,'' will 
be combined with existing item 11, ``Long-term borrowings.''
4. Report Title: Quarterly Financial Statements of Nonbank Subsidiaries 
of Bank Holding Companies
    Agency form number: FR Y-11Q.
    OMB control number: 7100-0244.
    Frequency: Quarterly.
    Reporters: Bank holding companies.
    Annual reporting hours: 6,845.
    Estimated hours per response: Range from 3.0 to 8.0 hours.
    Number of respondents: 276.
    Small businesses are affected.
    General description of report: The information collection is 
mandatory 12 U.S.C. 1844(b) and (c) and 12 CFR 225.5(b). Confidential 
treatment is not routinely given to most of the data in these reports. 
However, confidential treatment for the report information, in whole or 
in part, can be requested in accordance with the instructions to the 
form. FR Y-11Q, memorandum item 7.a, ``loans and leases past due 30 
through 89 days'' and FR Y-11Q, memorandum item 7.d, ``loans and leases 
restructured and included in past due and nonaccrual loans'' are 
confidential pursuant to Section (b)(8) of the Freedom of Information 
Act 5 U.S.C. 552(b)(8).
    The FR Y-11Q is filed quarterly by the top tier bank holding 
companies for each nonbank subsidiary of a bank holding company with 
total consolidated assets of $150 million or more in which the nonbank 
subsidiary has total assets of 5 percent or more of the top-tier bank 
holding company's consolidated Tier 1 capital, or where the nonbank 
subsidiary's total operating revenue equals 5 percent or more of the 
top-tier bank holding company's consolidated total operating revenue. 
The report consists of a balance sheet, income statement, off-balance-
sheet items, information on changes in equity capital, and a memoranda 
section.
    The Federal Reserve has approved the following minor revisions to 
the FR Y-11Q, as previously proposed, that are effective with the March 
31, 1997, reporting date:
    (1) Balance Sheet and Off-Balance-Sheet:
    (a) The term ``mortgage servicing rights'' will be revised to read 
``mortgage servicing assets'' on line item 9.a to conform with the 
nomenclature of FASB Statement No. 125.
    (b) A line item, ``trading liabilities,'' will be added to collect 
the amount of liabilities from the nonbank subsidiary's trading 
activities.
    (c) Item 19, ``Limited-life preferred stock (including related 
surplus),'' will be combined with item 15, ``Borrowings with a 
remaining maturity of more than one year (including subordinated 
debt).''
    (2) Income Statement: A line item, ``trading revenue,'' will be 
added to collect the net gain or loss on trading cash instruments and 
off-balance-sheet derivative contracts.
5. Report Title: Annual Financial Statements of Nonbank Subsidiaries
    Agency form number: FR Y-11I.
    OMB control number: 7100-0244.
    Frequency: Annual.
    Reporters: Bank holding companies.
    Annual reporting hours: 6,560.
    Estimated hours per response: Range from 0.4 to 8.0 hours.
    Number of respondents: 2,050.
    Small businesses are affected.
    General description of report: The information collection is 
mandatory 12 U.S.C. 1844(b) and (c) and 12 CFR 225.5(b). Confidential 
treatment is not routinely given to the data in these reports. However, 
confidential treatment for the report information, in whole or in part, 
can be requested in accordance with the instructions to the form. FR Y-
11I, Schedule A, item 7.a, ``loans and leases past due 30 through 89 
days'' and FR Y-11I, Schedule A, item 7.d, ``loans and leases 
restructured and included in past due and nonaccrual loans'' are 
confidential pursuant to Section (b)(8) of the Freedom of Information 
Act 5 U.S.C. 552(b)(8).
    The FR Y-11I is filed annually by the top tier bank holding 
companies for each of their nonbank subsidiaries that are not required 
to file a quarterly FR Y-11Q. The FR Y-11I report consists of similar 
balance sheet, income statement, off-balance-sheet, and change in 
equity capital information that is included on the FR Y-11Q. In 
addition, the FR Y-11I also includes a loan schedule to be submitted 
only by respondents engaged in credit extending activities.
    The Federal Reserve has approved the following minor revisions to 
the FR Y-11I, as previously proposed, that are effective with the 
December 31, 1997, reporting date:
    (1) Balance Sheet and Off-Balance-Sheet:
    (a) A line item, ``trading liabilities,'' will be added to collect 
the amount of liabilities from the nonbank subsidiary's trading 
activities.
    (b) Item 19, ``Limited-life preferred stock (including related 
surplus),'' will be combined with item 15, ``Borrowings with a 
remaining maturity of more than one year (including subordinated 
debt).''

Administrative Procedures Act

    Because the data collections referred to herein are contained in a 
substantive rule, the Board has chosen to follow the more detailed 
notice and comment procedures of substantive rulemaking that are 
contained in the Administrative Procedures Act and the Paperwork 
Reduction Act. The Administrative Procedures Act (5 U.S.C. 553(d)) 
provides that the required publication or service of a substantive rule 
shall be made not less than 30 days before its effective date, except 
as otherwise provided by the agency for good cause found and published 
with the rule. The substantive changes to this report are proposed to 
keep the reporting requirements consistent with those changes being 
incorporated in the Call Report to be filed by commercial banks as of 
March 31, 1997. In the past, bank holding companies have commented that 
reporting burden is minimized by keeping the Call Report and the bank 
holding company reports consistent and by implementing the changes on 
the same date. Furthermore, no comments were received addressing the 
effective date of the revisions approved by the Board and contained in 
this notice to the bank holding company reports. For these reasons, in 
accordance with 5 U.S.C. 553(d)(3), the Board finds there is good cause 
not to follow the 30-day notice requirements of 5 U.S.C. 553(d) and to 
make the implementation date for the revised FR Y-9C, FR Y-9LP, and FR 
Y-11Q reports effective for March 31, 1997.

Regulatory Flexibility Act Analysis

    The Board certifies that the above bank holding company reporting 
requirements are not expected to have a significant economic impact on 
small entities within the meaning of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.). The reporting requirements for the small companies 
require significantly fewer items of data to be submitted than the 
amount of information required of large bank holding companies.
    The information that is collected on the reports is essential for 
the detection of emerging financial problems, the assessment of a 
holding company's financial condition and capital adequacy, the 
performance of pre-inspection reviews, and the evaluation of expansion 
activities through mergers

[[Page 15711]]

and acquisitions. The imposition of the reporting requirements is 
essential for the Board's supervision of bank holding companies under 
the Bank Holding Company Act.

Board of Governors of the Federal Reserve System, March 28, 1997.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 97-8357 Filed 4-1-97; 8:45 am]
BILLING CODE 6210-01-P