[Federal Register Volume 63, Number 248 (Monday, December 28, 1998)]
[Notices]
[Pages 71470-71473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34183]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Proposed Collection; 
Comment Request

AGENCY: Board of Governors of the Federal Reserve System
SUMMARY: 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. Board-approved collections of information are 
incorporated into the official OMB inventory of currently approved 
collections of information. Copies of the OMB 83-Is and supporting 
statements and approved collection of information instruments are 
placed into OMB's public docket files. 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.
Request for comment on information collection proposals.
    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 collection(s), 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 is 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 26, 1999.
ADDRESSES: Comments, which should refer to the OMB control number or 
agency form number, should be addressed to Jennifer J. Johnson, 
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 261.14 of the Board's Rules Regarding Availability 
of Information, 12 CFR 261.14(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, 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.
    Proposal to approve under OMB delegated authority the extension for 
three years, with 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: 211,995
    Estimated average hours per response: 33.93
    Number of respondents: 1,562
Small businesses are affected.
    General description of report: This 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

[[Page 71471]]

accordance with the instructions to the form. Data reported on the FR 
Y-9C, Schedule HC-H, Column A, requiring information of ``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).
    Abstract: The FR Y-9C consists of standardized consolidated 
financial statements similar to commercial bank Report of Condition and 
Income (Call Report) (FFIEC 031-034; OMB No. 7100-0036). The FR Y-9C is 
filed quarterly by top-tier bank holding companies that have total 
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, 
multibank holding companies with total consolidated assets of less than 
$150 million with debt outstanding to the general public or engaged in 
certain nonbank activities must file the FR Y-9C.
    Current actions: The Federal Reserve proposes to make the following 
changes to the FR Y-9C effective with the March 31, 1999, reporting 
date.
Changes Related to Proposed Changes to the Call Report
    Schedule HC--Consolidated Balance Sheet
    (1) Add an item on the balance sheet for net gains (losses) on cash 
flow hedges due to Financial Accounting Standards Board (FASB) 
Statement No. 133, Accounting for Derivative Instruments and Hedging 
Activities (FAS 133). This statement takes effect for fiscal years 
beginning after June 15, 1999, with earlier application encouraged.
    Under FAS 133, all derivatives must be reported as either assets or 
liabilities on the balance sheet and must be carried at fair value. If 
certain conditions are met, a derivative may be specifically designated 
as a ``cash flow hedge.'' In a cash flow hedge, to the extent the hedge 
is effective, the gain or loss on the derivative is initially reported 
outside of earnings in a component of equity capital. The gain or loss 
will subsequently go through earnings in the period or periods when the 
transaction being hedged affects earnings. The ineffective portion of 
the hedge is reported in earnings immediately.
    As part of the disclosure requirements of FAS 133, an entity must 
disclose the accumulated net gains (losses) on cash flow hedges that 
are included in equity capital as of the balance sheet date. The 
Federal Reserve proposes to add the item ``Accumulated net gains 
(losses) on cash flow hedges,'' as of the report date, as new item 27.f 
in the equity capital section of the balance sheet. Current items 27.f 
through 27.h would be renumbered as items 27.g through 27.i.
    (2) Add an item for the separate reporting of ``Nonmortgage 
servicing assets,'' or include this item in the existing line for 
``Purchased credit card relationships.'' On August 10, 1998, the 
Federal Reserve published a final rule amending the regulatory capital 
treatment of servicing assets (63 FR 42668). Under this amendment, 
nonmortgage servicing assets (NMSAs) will now be recognized (rather 
than deducted) for regulatory capital purposes. However, these 
servicing assets are subject to a sublimit of 25 percent of Tier 1 
capital that previously applied only to purchased credit card 
relationships (PCCRs). To date, bank holding companies have reported 
their NMSAs as part of ``All other identifiable intangible assets,'' 
item 10.b.(2). This is because these intangibles generally have been 
deducted in full from Tier 1 capital and from assets in regulatory 
capital calculations. As a result of the revised regulatory capital 
treatment of NMSAs, these assets need to be distinguished from ``All 
other identifiable intangible assets.'' This change is needed to enable 
the Federal Reserve to verify the regulatory capital amounts that bank 
holding companies report in the FR Y-9C and to calculate regulatory 
capital ratios.
    The FFIEC plans to seek public comment for two reporting 
alternatives for the Call Report to respond to this change in 
regulatory capital standards. One alternative would be the equivalent 
to adding a new item 10.b.(2) for ``Nonmortgage servicing assets'' to 
Schedule HC and to renumber existing item 10.b.(2), ``All other 
identifiable intangible assets,'' as 10.b.(3). Another alternative 
would be the equivalent to revising Schedule HC, item 10.b.(1), 
``Purchased credit card relationships,'' to include NMSAs because these 
two types of intangibles are subject to the same Tier 1 capital 
sublimit. The proposed caption for this item would be ``Purchased 
credit card relationships and nonmortgage servicing assets.'' The 
Federal Reserve proposes to revise the FR Y-9C consistent with the 
option selected by the FFIEC for the Call Report.
Schedule HC-A--Securities
    Eliminate memorandum item 5, ``High-risk mortgage securities.'' The 
definition of high-risk mortgage securities was taken from the 
Supervisory Policy Statement on Securities Activities, which the FFIEC 
approved and the Federal Reserve adopted in December 1991, effective 
February 10, 1992 (57 FR 4029, February 3, 1992). In April 1998, the 
FFIEC and the Federal Reserve rescinded this policy statement and 
approved in its place a Supervisory Policy Statement on Investment 
Securities and End-User Derivatives Activities, effective May 26, 1998 
(63 FR 20191, April 23, 1998). In adopting the new policy statement, 
the Federal Reserve removed the previous policy statement's specific 
constraints concerning investments in high-risk mortgage securities, 
including its ``high risk'' tests, and substituted broader guidance 
covering all investment securities.
Schedule HC-I--Risk-Based Capital
    Add an item for the separate reporting of ``Fair market value of 
nonmortgage servicing assets,'' or include this item in the existing 
(relabeled) line for ``Fair market value of purchased credit card 
relationships'' (see `Other Revisions Not Related to Call Report 
Changes' section below). The Federal Reserve has determined that this 
information is needed to accurately measure the risk-based capital 
treatment of servicing assets under the Federal Reserve's amended 
capital adequacy guidelines. The Federal Reserve proposes to revise 
memorandum item 7 consistent with the option selected by the FFIEC on 
the Call Report for the balance sheet (book value) treatment of this 
item. Thus one alternative would be to add a new memorandum item 7.b 
for ``Fair market value of nonmortgage servicing assets, and renumber 
proposed memorandum item 7 as 7.a. Another alternative would be to 
revise proposed memorandum item 7 as, ``Fair market value of purchased 
credit card relationships and nonmortgage servicing assets.''
Schedule HI-A--Changes in Equity Capital
    Add an item for the change in accumulated net gains (losses) on 
cash flow hedges. As part of the disclosure requirements of FAS 133, 
bank holding companies would also disclose the year-to-date change in 
accumulated net gains (losses) on cash flow hedges that are included in 
equity capital. Bank holding companies would report the year-to-date 
change in these accumulated gains (losses), net of any reclassification 
adjustment, in the changes in equity capital schedule as new item 13.b. 
Existing item 13 on Schedule HI-A would be renumbered as item 13.a.
Other Revisions Not Related to Call Report Changes
    Schedule HC-A--Securities
    Add an item for net unrealized holding gains on available-for-sale 
equity securities. On August 26, 1998, the Federal Reserve along with 
the other

[[Page 71472]]

banking agencies announced a final rule amending the capital treatment 
of unrealized holding gains on certain equity securities. The final 
rule permits bank holding companies to include in supplementary (Tier 
2) capital up to 45 percent of the pretax net unrealized holding gains 
(that is, of the fair value over historical cost) on available-for-sale 
equity securities with readily determinable fair values. This is an 
optional designation for bank holding companies. However, if an 
institution opts to include an amount of unrealized holding gains in 
its Tier 2 capital, it must also include that same amount in its risk-
weighted assets. Bank holding companies that take this option would 
report net unrealized holding gains on available-for-sale equity 
securities included in Tier 2 and total capital ratios on Schedule HC-
A, as new memorandum item 4.c.
Schedule HC-I--Risk-Based Capital
    Eliminate the reporting requirements of memorandum item 7.a, 
``Purchased credit card relationships: Discounted value.'' The Federal 
Reserve has determined that this item is of limited use. See ``Changes 
Related to Proposed Changes to the Call Report'' section above.
    Notes to the Balance Sheet/Income Statement
    Expand the ``Notes to the Balance Sheet'' and ``Notes to the Income 
Statement'' sections to allow space for up to twenty optional comments.
Instructions
    Instructional revisions and clarifications will be done in 
accordance with changes made to the Call Report instructions and 
revisions to the Capital Guidelines.
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: 34,925
    Estimated average hours per response: 4.61
    Number of respondents: 1,894
Small businesses are affected.
    General description of report: This 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 this report. However, 
confidential treatment for the reporting information, in whole or in 
part, can be requested in accordance with the instructions to the form.
    Abstract: 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.
    Current actions: The Federal Reserve proposes the following 
revisions to the FR Y-9LP effective with the March 31, 1999, reporting 
date.
Schedule PC--Parent Company Only Balance Sheet
    Add an item on the balance sheet for accumulated net gains (losses) 
on cash flow hedges. As part of the disclosure requirements for FAS 
133, the Federal Reserve proposes to add the item ``Accumulated net 
gains (losses) on cash flow hedges,'' as of the report date, as new 
item 20.f in the equity capital section of the balance sheet. Current 
items 20.f and 20.g would be renumbered as items 20.g and 20.h.
Instructions
    Instructional revisions and clarifications would be made as 
necessary, to conform with changes made to the Call Report 
instructions.
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: 31,324
    Estimated average hours per response: 3.87
    Number of respondents: 4,047
Small businesses are affected.
    General description of report: This 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 this report. However, 
confidential treatment for the reporting information, in whole or in 
part, can be requested in accordance with the instructions to the form.
    Abstract: The FR Y-9SP is a parent company only financial statement 
filed on a semiannual basis by one-bank holding companies with total 
consolidated assets of less than $150 million, and multibank holding 
companies with total consolidated assets of less than $150 million that 
meet certain other criteria. This report, an abbreviated version of the 
more extensive FR Y-9LP, is designed to obtain basic balance sheet and 
income statement information for the parent company, information on 
intangible assets, and information on intercompany transactions.
    Current actions: The Federal Reserve proposes the following 
revisions to the FR Y-9SP effective with the June 30, 1999, reporting 
date.
Balance Sheet
    Add an item on the balance sheet for accumulated net gains (losses) 
on cash flow hedges. As part of the disclosure requirements for FAS 
133, the Federal Reserve proposes to add the item ``Accumulated net 
gains (losses) on cash flow hedges,'' as of the report date, as new 
item 16.e in the equity capital section of the balance sheet. Current 
item 16.e would be renumbered as item 16.f.
Instructions
    Instructional revisions and clarifications would be made as 
necessary, to conform with changes made to the Call Report 
instructions.
    Proposal to approve under OMB delegated authority the extension for 
three years, without revision, of the following report:
1. Report title: Supplement to the Consolidated Financial Statements 
for Bank Holding Companies
    Agency form number: FR Y-9CS
    OMB control number: 7100-0128
    Frequency: up to 4 times per year
    Reporters: Bank holding companies
    Annual reporting hours: 1,200
    Estimated average hours per response: 0.50
    Number of respondents: 600
Small businesses are affected.
    General description of report: This 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 this report. However, 
confidential treatment for the reporting information, in whole or in 
part, can be requested in accordance with the instructions to the form.
    Abstract: The FR Y-9CS is a free form supplement to the 
Consolidated Financial Statements for Bank Holding Companies (FR Y-9C; 
OMB No. 7100-0128) used to collect any additional information deemed 
critical and needed in an expedited manner. The FR Y-9C consists of 
standardized consolidated financial statements filed quarterly by bank 
holding companies.
    Proposal to approve under OMB delegated authority the revision, 
without extension, of the following reports:
1. 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: 10,683
    Estimated average hours per response: 6.24
    Number of respondents: 428
Small businesses are affected.
    General description of report: This information collection is 
mandatory (12 U.S.C. 1844(b) and (c) and 12 CFR 225.5(b)). Confidential 
treatment is not

[[Page 71473]]

routinely given to most of the data in this report. However, 
confidential treatment for the reporting 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).
    Abstract: 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.
    Current actions: The Federal Reserve proposes minor revisions to 
the FR Y-11Q effective with the March 31, 1998, reporting date.
Balance Sheet
    Add an item on the balance sheet for accumulated net gains (losses) 
on cash flow hedges. As part of the disclosure requirements for FAS 
133, the Federal Reserve proposes to add the item ``Accumulated net 
gains (losses) on cash flow hedges,'' as of the report date, as new 
item 20.f in the equity capital section of the balance sheet. Current 
items 20.f through 20.h would be renumbered as items 20.g through 20.i.
Notes to the Financial Statements
    Add a section for ``Notes to the Financial Statements.'' The 
Federal Reserve proposes to add this section to allow respondents the 
opportunity to provide, at their option, any material information 
included in specific line items on the financial statements that the 
bank holding company wishes to explain. The section would have space 
for up to ten comments.
Instructions
    Instructional revisions and clarifications would be made as 
necessary, to conform with changes made to the Call Report 
instructions.
2. Report title: Annual Financial Statements of Nonbank Subsidiaries of 
Bank Holding Companies
    Agency form number: FR Y-11I
    OMB control number: 7100-0244
    Frequency: Annual
    Reporters: Bank holding companies
    Annual reporting hours: 6,762
    Estimated average hours per response: 3.24
    Number of respondents: 2,087
Small businesses are affected.
    General description of report: This 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 this report. However, 
confidential treatment for the reporting 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).
    Abstract: 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. 
However, some of the items on the FR Y-11I are collected in a less 
detailed manner. In addition, the FR Y-11I also includes a loan 
schedule to be submitted only by respondents engaged in extending 
credit.
    Current actions: The Federal Reserve proposes a minor revision to 
the FR Y-11I effective with the December 31, 1999, reporting date.
Notes to the Financial Statements
    Add a section for ``Notes to the Financial Statements.'' The 
Federal Reserve proposes to add this section to allow respondents the 
opportunity to provide, at their option, any material information 
included in specific line items on the financial statements that the 
bank holding company wishes to explain. The section would have space 
for up to ten comments.
Instructions
    Instructional revisions and clarifications would be made as 
necessary, to conform with changes made to the Call Report 
instructions.

    Board of Governors of the Federal Reserve System, December 21, 
1998.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 98-34183 Filed 12-24-98; 8:45AM]
Billing Code 6210-01-F