[Federal Register Volume 62, Number 216 (Friday, November 7, 1997)]
[Notices]
[Pages 60244-60246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29437]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Proposed Collection; 
Comment Request

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, 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. Copies of the OMB 83-Is, 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 the following:
    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 estimates of the burden of 
the proposed information collection, 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 collection on respondents, including through the use of 
automated collection techniques or other forms of information 
technology.
DATES: Comments must be submitted on or before January 6, 1998.
ADDRESSES: Comments, which should refer to the OMB control number or 
agency form number, should be addressed to 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: Alexander T. Hunt, Office of Information and 
Regulatory Affairs,

[[Page 60245]]

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, Chief, Financial Reports Section (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 Diane Jenkins (202-452-3544), 
Board of Governors of the Federal Reserve System, Washington, DC 20551.
    For further information on the proposal concerning the FR Y-9C 
report, contact Robert T. Maahs, Supervisory Financial Analyst (202-
872-4935).
    Proposal to approve under OMB delegated authority the extension for 
three years, with revision, of the following report:
    1. Report title: Government Securities Dealers Reports
Agency form number: FR 2004A, FR 2004B, FR 2004C, FR 2004SI, FR 2004WI
OMB control number: 7100-0003
Frequency: weekly and on occasion
Reporters: primary dealers in U.S. government securities
Annual reporting hours: 11,817
Estimated average hours per response: 1.0 (FR 2004A, B, C, SI); 0.25 
(FR 2004WI)
Number of respondents: 39
Small businesses are not affected.
    General description of report: This information collection is 
voluntary (12 U.S.C. 248(a)(2), 353-359, and 461) and is given 
confidential treatment (5 U.S.C. 552(b)(4)).
    Abstract:This group of reports is used to collect data on 
positions, transactions, and financing activity in the government 
securities market from primary dealers in U.S. government securities. 
The Federal Reserve uses the data to monitor the condition of the U.S. 
government securities market in its surveillance of the market and to 
assist the U.S. Department of the Treasury.
    Three revisions are proposed for implementation in January 1998. On 
the FR 2004A and FR 2004B a line would be added to report position and 
transaction volumes with respect to Treasury Inflation-Index 
Securities. On the FR 2004A and FR 2004B four lines would be added to 
provide greater detail regarding the dealers' federal agency securities 
positions and transaction volumes. On the FR 2004C, two columns of 
matched-book financing transactions would be deleted. The revisions, on 
a net basis, would have no effect on the current annual reporting 
burden.
    Proposal to approve under OMB delegated authority the extension for 
three years, without revision, of the following reports:
    1. Report title: Domestic Branch Notification
Agency form number: FR 4001
OMB control number: 7100-0097
Frequency: On occasion
Reporters: State member banks
Annual reporting hours: 201
Estimated average hours per response: 30 minutes for expedited 
notifications; 1 hour for nonexpedited notifications
Number of respondents: 316 expedited, 43 nonexpedited
Small businesses are affected.
    General description of report: This information collection is 
mandatory (12 U.S.C. 321) and is not given confidential treatment.
    Abstract: The Federal Reserve System requires a state member bank 
to file a notification whenever it proposes to establish a domestic 
branch. There is no formal reporting form; banks notify the Federal 
Reserve by letter prior to making the proposed investment. The Federal 
Reserve uses the information to fulfill its statutory obligation to 
obtain public comment on such proposals before acting on them, and to 
otherwise supervise state member banks.
    2. Report title: Investment in Bank Premises Notification
Agency form number: FR 4014
OMB control number: 7100-0139
Frequency: On occasion
Reporters: State member banks
Annual reporting hours: 8
Estimated average hours per response: 30 minutes
Number of respondents: 15
Small businesses are affected.
    General description of report: This information collection is 
mandatory (12 U.S.C. 371d) and is not given confidential treatment.
    Abstract: The Federal Reserve System requires a state member bank 
to file a notification whenever it proposes to make an investment in 
bank premises that results in its total bank premises investment 
exceeding its capital stock and surplus or, if the bank is well 
capitalized and in good condition, exceeding 150 percent of its capital 
stock and surplus. There is no formal reporting form; banks notify the 
Federal Reserve by letter prior to making the proposed investment. The 
Federal Reserve uses the information to fulfill its statutory 
obligation to supervise state member banks.
    3. Report title: Reports Related to Securities of State Member 
Banks as Required by Regulation H
Agency form number: N/A
OMB control number: 7100-0091
Frequency: On occasion
Reporters: State member banks
Annual reporting hours: 2,146
Estimated average hours per response: 5.11 hours
Number of respondents: 30
Small businesses are not affected.
    General description of report: This information collection is 
mandatory (15 U.S.C. section 78l(i)) and is not given confidential 
treatment.
    Abstract: The Federal Reserve's Regulation H requires certain state 
member banks to submit information related to their securities to the 
Board of Governors of the Federal Reserve System on the same forms that 
bank holding companies and nonbank entities use to submit similar 
information to the Securities and Exchange Commission. The information 
is used primarily for public disclosure and is available to the public 
upon request.
    Proposal to approve under OMB delegated authority the elimination 
of certain requested information, without extension, from the following 
reports:
    1. Report title: Weekly Report of Assets and Liabilities for Large 
Banks
Agency form number: FR 2416
OMB control number: 7100-0075
Frequency: weekly
Reporters: U.S. commercial banks
Annual reporting hours: The proposal is estimated to reduce the annual 
reporting burden from 46,592 hours to 44,928 hours.
Estimated average hours per response: The proposal is estimated to 
reduce the burden per response from 7 hours to 6.75 hours.
Number of respondents: 128
Small businesses are not affected.
    General description of report: This information collection is 
voluntary (12 U.S.C. Secs.  225(a) and 248(a)(2)) and is given 
confidential treatment (5 U.S.C. Sec.  552(b)(4) and (8)).
    Abstract: The Board proposes to eliminate two items from the FR 
2416, the large domestic bank series of the three voluntary weekly 
condition/bank credit reports. The FR 2416 is a detailed balance sheet 
report that is collected as of each Wednesday from a sample of about 
128 large U.S.-chartered commercial banks. All three reports, together 
with data from other sources, are used to construct weekly estimates of 
bank credit, sources and uses of bank funds, and a balance sheet for 
the

[[Page 60246]]

banking system as a whole. These estimates also are used in 
constructing the bank credit component of the domestic non-financial 
debt aggregate monitored by the Federal Open Market Committee.
    The Board proposes to eliminate two items, ``Commercial paper 
outstanding issued by related institutions of the reporting bank, 
issued through commercial paper brokers and dealers'' (Memorandum item 
7.a) and ``Commercial paper outstanding issued by related institutions 
of the reporting bank, issued directly'' (Memorandum item 7.b). The 
information collected in these two items is now obtained by the Federal 
Reserve from another source, eliminating the need to maintain them on 
the FR 2416. The revisions would be effective with data as-of January 
7, 1998.
    2. 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: 196,462
Estimated average hours per response: Ranges from 5 to 1,250 hours
Number of respondents: 1,457
Small businesses are affected.
    General Information: 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 series of reports has 
historically been, and continues to be, the primary source of financial 
information on bank holding company 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 holding 
companies overall financial condition and performance as part of the 
Federal Reserve System's overall supervisory responsibilities.
    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.
    On August 27, 1997, the Federal Reserve announced in the Federal 
Register\1\ modifications to the prudential limits or firewalls that 
currently apply to bank holding companies engaged in securities 
underwriting and dealing activities through section 20 subsidiaries. 
The modifications are effective October 31, 1997.
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    \1\ 62 FR 45295 (1997).
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    The Federal Reserve announced that as one of its modifications to 
the firewalls, it was eliminating the required capital deductions that 
related to the section 20 subsidiary in determining capital adequacy. 
The Federal Reserve stated that ``the capital deductions (and resulting 
deconsolidation for regulatory capital purposes) are inconsistent with 
generally accepted accounting principles (GAAP) and have therefore 
created confusion and imposed costs by requiring bank holding companies 
to prepare financial statements on two bases.'' Therefore, the Federal 
Reserve is proposing to grant prompt reporting relief to bank holding 
companies with section 20 subsidiaries by eliminating Schedule HC-J 
from the FR Y-9C effective with the December 31, 1997, reporting date.
    The estimated time per response is an average of all bank holding 
companies filing this report. The response time for a given bank 
holding company varies depending on the size and the types of 
activities in which they are engaged. The time per response for a bank 
holding company is estimated to range from 5 to 1,250 hours, depending 
on individual circumstances. Although the proposed revisions will 
provide significant reporting relief for the 26 bank holding companies 
with section 20 subsidiaries that must currently complete Schedule HC-
J, the effect on the average burden of all FR Y-9C respondents is only 
an estimated reduction of 15 minutes per response.
    Board of Governors of the Federal Reserve System, November 3, 
1997.
William W. Wiles,
Secretary of the Board.
[FR Doc. 97-29437 Filed 11-6-97; 8:45AM]
Billing Code 6210-01-F