[Federal Register Volume 64, Number 51 (Wednesday, March 17, 1999)]
[Notices]
[Pages 13200-13203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6457]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System
BACKGROUND: Notice is hereby given of the final approval of proposed 
information collection 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). 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.
FOR FURTHER INFORMATION CONTACT:
Chief, Financial Reports Section--Mary M. West--Division of Research 
and

[[Page 13201]]

Statistics, Board of Governors of the Federal Reserve System, 
Washington, DC 20551 (202-452-3829).
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 28, 1998, the Board issued for 
public comment proposed revisions to certain bank holding company 
reports (63 FR 71470). The comment period expired on February 26, 1999. 
The Board did not receive any letters of comment.
    Final approval under OMB delegated authority of 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 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 memorandum 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 Board approved the following changes to the FR 
Y-9C effective with the March 31, 1999, reporting date.
Changes Related to Current Revisions 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 Board 
approved adding 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 will be 
renumbered as items 27.g through 27.i.
    (2) Revise balance sheet item 10.b(1), Purchased credit card 
relationships, to include nonmortgage servicing assets (NMSAs). The 
caption for this item will be Purchased credit card relationships and 
nonmortgage servicing assets. 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, 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.
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 statements 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
    Revise memorandum item 7.b, Fair market value of purchased credit 
card relationships to include the fair market value of nonmortgage 
servicing assets. This item would be renumbered memorandum item 7 since 
the current memorandum item 7.a will be eliminated (see Other Revisions 
Not Related to Call Report Changes section below). The caption for this 
item will be Fair value of purchased credit card relationships and 
nonmortgage servicing assets. The Federal Reserve has determined that 
this information is needed to accurately measure the risk-based capital 
treatment of servicing assets under the Federal Reserves amended 
capital adequacy guidelines.
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 will 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 will 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.

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 Existing item 13 on Schedule HI-A will 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 included in supplemental (Tier 2) capital. On August 
26, 1998, the Federal Reserve along with the other 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 for 
all of its risk-based capital ratios (including the Tier 1 risk-based 
capital ratio). Bank holding companies that take this option will 
report net unrealized holding gains on available-for-sale equity 
securities included in Tier 2 and total capital ratios on Schedule HC-
A, in 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.
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 Board approved 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 will 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 will be made as 
necessary, to conform with changes made to the FR Y-9C.
    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 Board approved 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 will 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 
will be renumbered as item 16.f.
Instructions
    Instructional revisions and clarifications will be made as 
necessary, to conform with changes made to the FR Y-9C.
    Final approval under OMB delegated authority of 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.
    Final approval under OMB delegated authority of 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

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    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 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 companys consolidated Tier 1 capital, or where the 
nonbank subsidiaries total operating revenue equals 5 percent or more 
of the top-tier bank holding companys 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 Board approved minor revisions to the FR Y-11Q 
effective with the March 31, 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 Board approved adding 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 will be renumbered as items 20.g through 20.i.
Notes to the Financial Statements
    Add a section for Notes to the Financial Statements. The Board 
approved adding 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 will have space for up to ten comments.
Instructions
    Instructional revisions and clarifications will be made as 
necessary, to conform with changes made to the FR Y-9C.
    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 Board approved 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 Board 
approved adding 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 will have space for up to ten comments.
Instructions
    Instructional revisions and clarifications will be made as 
necessary, to conform with changes made to the FR Y-9C.
Administrative Procedure 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 Procedure 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 that 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 these reports 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, 1999. In the past, bank holding companies have commented that 
the 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, the effective date of the revisions was 
published in the initial notice and no comments were received 
addressing the effective date. 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, 1999.
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 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 11, 
1999.
Robert deV. Frierson,
Associate Secretary of the Board.
[FR Doc. 99-6457 Filed 3-16-99; 8:45AM]
Billing Code 6210-01-F