[Federal Register Volume 64, Number 17 (Wednesday, January 27, 1999)]
[Notices]
[Pages 4103-4106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1838]


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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 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 collection 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 collection,

[[Page 4104]]

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 March 29, 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. West, 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, without revision, of the following reports:
1. Report title: Notification of Foreign Branch Status
    Agency form number: FR 2058
    OMB control number: 7100-0069
    Frequency: on occasion
    Reporters: state member banks, national banks, bank holding 
companies, Edge and agreement corporations
    Annual reporting hours: 20
    Estimated average hours per response: 15 minutes
    Number of respondents: 80
Small businesses are not affected.
    General description of report: This information collection is 
mandatory (12 U.S.C. 321, 601, 602, 615, and 1844(c)) and is not given 
confidential treatment.
    Abstract: Member banks, bank holding companies, and Edge and 
agreement corporations are required to notify the Federal Reserve 
System of the opening, closing, or relocation of an approved foreign 
branch. The notice requests information on the location and extent of 
service provided by the branch, and is filed within thirty days of the 
change in status. The Federal Reserve System needs the information 
requested on the FR 2058 form to fulfill supervisory responsibilities 
specified in Regulation K including the supervision of foreign branches 
of U.S. banking organizations.
    Regulation K, ``International Banking Operations,'' sets forth the 
conditions under which a foreign branch may be established. For their 
initial establishment of foreign branches, organizations must request 
prior Federal Reserve approval as directed in Attachment A of the FR K-
1, ``International Applications and Prior Notifications Under Subparts 
A and C of Regulation K'' (OMB No. 7100-0107). For subsequent branch 
establishments into additional foreign countries, organizations must 
give the Federal Reserve System forty-five days prior written notice 
using Attachment B of FR K-1. Organizations use the FR 2058 
notification to notify the Federal Reserve when any of these branches 
has been opened, closed, or relocated.
2. Report title: International Applications and Prior Notifications 
under Subparts A and C of Regulation K
    Agency form number: FR K-1
    OMB control number: 7100-0107
    Frequency: on occasion
    Reporters: state member banks, national banks, bank holding 
companies, Edge and agreement corporations, and certain foreign banking 
organizations
    Annual reporting hours: 636
    Estimated average hours per response:
    Attachments A - G: 10
    Attachments H, I: 15
    Attachment J: 20
    Number of respondents: 36
Small businesses are not affected.
    General description of report: This information collection is 
mandatory(12 U.S.C. 601-604(a), 611-631, 1843(c)(13), 1843(c)(14), and 
1844(c)) and is not given confidential treatment. The applying 
organization has the opportunity to request confidentiality for 
information that it believes will qualify for a Freedom of Information 
Act exemption.
    Abstract: The FR K-1 comprises a set of applications and 
notifications that govern the formation of Edge or agreement 
corporations and the international and foreign activities of U.S. 
banking organizations. The applications and notifications collect 
information on projected financial data, purpose, location, activities, 
and management. The Federal Reserve requires these applications for 
regulatory and supervisory purposes and to allow the Federal Reserve to 
fulfill its statutory obligations under the Federal Reserve Act and the 
Bank Holding Company Act of 1956.
    Regulatory Flexibility Act Statement: The Board certifies that the 
extension of the above applications and notifications is not expected 
to have a significant economic impact on a substantial number of small 
entities within the meaning of the Regulatory Flexibility Act.
    Proposal to approve under OMB delegated authority the extension for 
three years, with revision, of the following reports:
1. Report title: Reports Related to Public Welfare Investments of State 
Member Banks
    Agency form number: FR H-6
    OMB control number: 7100-0278
    Frequency: event-generated
    Reporters: state member banks
    Annual reporting hours: 78
    Estimated average hours per response:
    Investment Notice: 2
    Application: 2.75
    Extension of divestiture period: 5
    Number of respondents: 35
Small businesses are not affected.
    General description of report: This information collection is 
required to obtain a benefit (12 U.S.C. 338a) and is generally not 
given confidential treatment. However, if the information collected 
contains an examination rating (or other supervisory information), that 
information would be exempt from disclosure (5 U.S.C. 552(b)(4)).
    Abstract: The FR H-6 comprises of an investment notice, application 
for Board approval of an investment, and request for extension of the 
divestiture period of an investment. The state member banks may make 
certain public welfare investments without prior Board approval, they 
need only notify the Federal Reserve. Certain other public welfare 
investments require prior approval and the request must be

[[Page 4105]]

submitted to the Board. If an investment ceases to conform to certain 
requirements the state member bank must divest itself of the 
investment. In some cases the bank must submit a request for extension 
of the divestiture period. The proposed revisions for the FR H-6 would 
conform the information collection with the recently revised Regulation 
H. The Board is eliminating the requirement that, to avoid applying for 
Board approval, the investment must be smaller than 2 percent of 
capital and surplus. This should result in fewer applications and more 
notices of investments not requiring Board approval. Additionally, a 
requirement has been added to the application for Board approval: if 
the bank is not permitted to make the investment without Board 
approval, the institution must explain the reason(s) why the investment 
is ineligible.
    Regulatory Flexibility Act Analysis: Pursuant to section 605(b) of 
the Regulatory Flexibility Act (RFA) (5 U.S.C. 605(b)) the Federal 
Reserve hereby certifies that this proposed rule will not have a 
significant economic impact on a substantial number of small entities.
2. Report title: Application for Prior Approval to Become a Bank 
Holding Company, or for a Bank Holding Company to Acquire an Additional 
Bank or Bank Holding Company
    Agency form number: FR Y-3
    OMB control number: 7100-0121
    Frequency: Event-generated
    Reporters: Corporations seeking to become bank holding companies, 
or bank holding companies and state chartered banks that are members of 
the Federal Reserve System
    Annual reporting hours: 30,443
    Estimated average hours per response:
    Section 3(a)(1): 49 hours,
    Section 3(a)(3) and 3(a)(5): 59.5 hours
    Number of respondents:
    Pursuant to Section 3(a)(1): 274,
    Pursuant to Section 3(a)(3) and 3(a)(5): 286
Small businesses are affected.
    General description of report: This information collection is 
mandatory (12 U.S.C. Secs.  1842(a)(1), (a)(3), and (a)(5) and 12 
U.S.C. Sec.  1844(c)). Individual respondent data are available to the 
public except any portions which have been granted confidential 
treatment at the applicants request (5 U.S.C.552 (b)(4) and (b)(8)).
    Abstract: This application collects information concerning proposed 
bank holding company formations, acquisitions, and mergers between 
banks and bank holding companies for review by the Federal Reserve. The 
application collects financial and managerial information and data on 
competitive and public convenience factors.
    Current Actions: Tier 3 capital would be included in the 
information requested for question 4.d of the FR Y-3 due to changes in 
the international risk-based capital standards. Information on debt 
servicing would be added to the FR Y-3 to conform the report with 
revisions to sections 225.24 and 225.17 of Regulation Y.
    Clarifications are proposed to the ``Competition and Convenience 
and Needs'' section of the application to remove certain outdated 
references. Question 11 of this section would be clarified and question 
12 of this section would be revised to conform with proposed changes to 
the Interagency Bank Merger Act Application (FR 2070; OMB No. 7100-
0171). In addition, clarifications would be made to the publication 
requirements for this application.
    3. Report title: Application for Prior Approval to Engage Directly 
or Indirectly in Certain Nonbanking Activities
    Agency form number: FR Y-4
    OMB control number: 7100-0121
    Frequency: Event-generated
    Reporters: Bank holding companies
    Annual reporting hours: 4,147
    Estimated average hours per response:
    Post-consummation: 0.50 hours;
    Expedited notification: 5 hours;
    Complete notification: 12 hours.
    Number of respondents:
    Post-consummation: 29;
    Expedited notification: 92;
    Complete notification: 306.
Small businesses are affected.
    General description of report: This information collection is 
mandatory (12 U.S.C. Sec.  1843 and 1844 (c)). Individual respondent 
data are available to the public except any portions granted 
confidential treatment at the applicants request (5 U.S.C. Sec.  
552(b)(4) and (8)).
    Abstract: This form is completed by a bank holding company seeking 
prior approval (1) to acquire or retain the assets or shares of a 
nonbank company or (2) to engage de novo in nonbank activities. Most 
applications require information on the proposed transaction, 
information on competition and public benefits, and financial and 
managerial information. For applications to engage de novo in nonbank 
activities permissible under Regulation Y, less detailed information is 
required.
    Current Actions: The Federal Reserve proposes to revise the FR Y-4 
to reflect changes to Regulation Y that provide for two separate 
streamlined procedures for certain nonbanking proposals that are 
intended to reduce significantly regulatory burden and to improve the 
ability of well-run bank holding companies to respond quickly to 
changes in the market place. The FR Y-4 would become a notification 
form instead of an application.
4. Report title: Annual Report of Foreign Banking Organizations; 
Foreign Banking Organization Structure Report on U.S. Banking and 
Nonbanking Activities; Foreign Banking Organization Confidential Report 
of Operations
    Agency form number: FR Y-7; FR Y-7A; FR 2068
    OMB control number: 7100-0125
    Frequency: Annual
    Reporters: foreign banking organizations
    Annual reporting hours: 5,150 hours
    Estimated average hours per response: 15.75
    Number of respondents: 327
Small businesses are not affected.
    General description of report: These information collections are 
mandatory (12 U.S.C. Secs. 1844(c), 3106, and 3108(a)). Upon request 
from a respondent certain information in the FR Y-7 and FR Y-7A may be 
given confidential treatment pursuant to the Freedom of Information Act 
(5 U.S.C. Secs.  552(b)(4) and (6)). The FR 2068 is a confidential 
report of operations that is exempted from public disclosure pursuant 
to the Freedom of Information Act (5 U.S.C. Sec.  552(b)(8) and 12 CFR 
Sec.  261.11(h).
    Abstract: The FR Y-7, FR Y-7A, and FR 2068 are annual reports 
completed by foreign banking organizations that engage in banking in 
the United States, either indirectly through a subsidiary bank, Edge or 
agreement corporation, or commercial lending company, or directly 
through a branch or agency. The FR Y-7 collects financial, managerial, 
and organizational information on the foreign banking organization. The 
FR 2068 collects confidential financial and organizational information, 
which is not collected in the FR Y-7. A foreign banking organization is 
currently exempt from filing the FR 2068 if it meets certain criteria 
related to the size and type of its U.S. banking operations. The FR Y-
7A collects structural information on the foreign banking organization 
and its subsidiaries. All of the reports are filed as of the end of the 
reporter's fiscal year. The information contained in these reports is 
used by the Federal Reserve System to assess the foreign banking 
organization's ability to be a continuing source of strength to its 
U.S. banking operations and to determine compliance with U.S. laws and 
regulations.

[[Page 4106]]

    Current Actions: The Federal Reserve proposes to reduce regulatory 
reporting burden for foreign banking organizations (FBOs) by 
eliminating the FR 2068 and by reducing and clarifying the amount of 
information to be reported on the FR Y-7 and FR Y-7A. Most of the 
information collected in the FR 2068 is now publicly available. The 
publicly available portion of two of the items currently reported on 
the FR 2068 would be added to the FR Y-7: (1) financial statements of 
unconsolidated majority-owned related subsidiaries, and (2) financial 
data on unconsolidated minority-owned related companies. The most 
significant changes on the FR Y-7 are the elimination of the 
information requested on directors and officers, the simplification of 
the information requested for the organization chart, and the addition 
of two items currently reported on the FR 2068 as mentioned above The 
most significant changes on the FR Y-7A are the simplification of the 
information requested on securities held through debts previously 
contracted and on Legal Authority, and the addition of four new items.
    Proposal to approve under OMB delegated authority the 
implementation of the following report:
1. Report title: Notice for Prior Approval to Become a Bank Holding 
Company, or for a Bank Holding Company to Acquire an Additional Bank or 
Bank Holding Company
    Agency form number: FR Y-3N
    OMB control number: 7100-0121
    Frequency: Event-generated
    Reporters: Corporations seeking to become bank holding companies, 
or bank holding companies and state chartered banks that are members of 
the Federal Reserve System
    Annual reporting hours: 945
    Estimated average hours per response: 5 hours
    Number of respondents: 189
Small businesses are affected.
    General description of report: This information collection is 
mandatory (12 U.S.C. Sec.  1844(c)). Individual respondent data are 
available to the public except any portions which have been granted 
confidential treatment at the applicant's request (5 U.S.C. 552 (b)(4) 
and (b)(8)).
    Abstract: The Federal Reserve is proposing to implement the FR Y-3N 
due to Regulation Y revisions that provide for streamlined processes 
for reviewing applications and notifications from respondents meeting 
certain qualifying criteria. The FR Y-3N requests substantially less 
information than the current FR Y-3 for respondents that meet the 
qualifying criteria.
    Current Actions: The proposed FR Y-3N reporting form would be used 
for: (1) notifications filed using the abbreviated notice procedures 
for certain BHC formations, as described in section 225.17 of 
Regulation Y; (2) notifications filed to acquire shares, assets, or 
control of a bank, or a merger or consolidation between BHCs, filed 
under the streamlined procedures described in section 225.14 of 
Regulation Y, and (3) notifications filed to acquire a nonbank insured 
depository institution that require approval under section 4 of the BHC 
Act, if the BHC and the proposal would meet all of the criteria for 
expedited action under section 225.14 if the nonbank insured depository 
institution were a bank.
    Proposal to approve under OMB delegated authority the 
discontinuance of the following reports:
1. Report title: Notification Pursuant to Section 211.23(h) of 
Regulation K on Acquisitions by Foreign Banking Organizations
    Agency form number: FR 4002
    OMB control number: 7100-0110
    Frequency: Event-generated
    Reporters: foreign banking organizations
    Annual reporting hours: 80
    Estimated average hours per response: 0.50
    Number of respondents: 160
Small businesses are not affected.
    General description of report: This information collection is 
mandatory (12 U.S.C. Secs.  1844(c), 3106, and 3108(a)). Upon request 
from a respondent certain information in the FR 4002 may be given 
confidential treatment pursuant to the Freedom of Information Act (5 
U.S.C. Secs.  552(b)(4) and (6)).
    Abstract: The FR 4002 is an event-generated information collection 
that foreign banking organizations are required to submit, in a letter 
to the appropriate Federal Reserve Bank. The information is due within 
thirty days of the end of a quarter during which the foreign banking 
organization acquires shares of companies that engage, directly or 
indirectly, in business in the United States, or during which a foreign 
subsidiary of the FBO commences direct activities in the United States. 
The letter should include a brief description of the nature and scope 
of each company's U.S. business(es), including the four-digit Standard 
Industrial Classification (SIC) code(s) of the U.S. activities of the 
company and of its direct parent, and a statement of total assets and 
total revenue of the direct parent. The foreign banking organization is 
not required to report information whose collection would cause the FBO 
to incur ``unreasonable effort or expense,'' or information that is 
otherwise ``unknown and not reasonably available.''
    Current Actions: In December 1997, the Board proposed changes to 
Regulation K to require the information reported in the FR 4002 
annually instead of quarterly (62 FR 68424). If the Board implements 
these proposed changes, the information collected on the FR 4002 will 
be reflected annually in the FR Y-7 and FR Y-7A, eliminating the need 
for this separate information collection. However, the final rulemaking 
has not been published. This proposal seeks approval to discontinue the 
FR 4002 upon publication of a final rulemaking permitting annual 
reporting of the information.

    Board of Governors of the Federal Reserve System, January 21, 
1999.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 99-1838 Filed 1-26-99; 8:45AM]
Billing Code 6210-01-F