[Federal Register Volume 64, Number 90 (Tuesday, May 11, 1999)]
[Notices]
[Pages 25342-25344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-11810]


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FEDERAL RESERVE SYSTEM


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

SUMMARY
    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). 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 instrument(s) 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 Statistics, Board of Governors of the Federal Reserve System, 
Washington, DC 20551 (202-452-3829)

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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)
    Final approval under OMB delegated authority of the extension for 
three years, with revision, of the following reports:
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
    Effective date: December 31, 1999
    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. 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. 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. 552(b)(8) and 12 CFR 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.
    Current Actions: The Federal Reserve is reducing 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 will 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.
    The Federal Reserve received two public comment letters from a law 
firm and a trade association pertaining to the proposed revisions. Both 
organizations strongly supported the Board's proposal to streamline and 
reduce the burden associated with these reports. Both commenters also 
suggested that foreign banking organizations (FBOs) be allowed to 
include companies not reportable on the FR Y-7 organization chart, for 
purposes of clarity and retaining a complete record of the FBO's U.S. 
interest, if the companies are designated as not reportable. The 
Federal Reserve agrees with this suggestion and has clarified the 
instructions to allow this option. In addition, both commenters asked 
for further clarification to the instructions for Report Item 2 of the 
FR Y-7A, which will be provided later this year in the form of a chart 
supplementing the instructions.
    The trade association also expressed concern about including 
additional subsidiaries in Report Item 2 of the FR Y-7A, as proposed. 
The information requested for this item is consistent with the 
information requested for the organizational chart in Report Item 3 of 
the FR Y-7. The Federal Reserve needs this information to provide a 
complete picture of the FBO's organizational structure for purposes of 
assessing the safety and soundness of the complete organization.
    The law firm suggested that the Federal Reserve allow filers for 
whom required information is not available in accord with their 
domestic law at April 30 of each year, to submit their entire FR Y-7 
filing by June 30 for the fiscal year then-ended. The Federal Reserve 
needs the data on the current filing system in order to assess the 
FBO'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.
    The law firm also suggested several modifications to the Facsimile 
Confirmation Report which is sent to the institution each year after 
their initial FR Y-7A filing for verification. The Federal Reserve will 
review the Facsimile Confirmation Report and will consider 
incorporating the law firm's suggestions after the year 2000.
    Finally, the law firm commented that the estimated burden hours per 
response are too low. While the Federal Reserve realizes that large 
organizations may take much more than 15.75 hours to complete this 
information, small companies with limited U.S. presence require much 
less time. This amount represents an average for all respondents.
    Discontinuance of the following report under OMB delegated 
authority:
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. 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. 
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

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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. The FR 4002 will be 
discontinued if these proposed changes to Regulation K are adopted upon 
publication of the final rulemaking. The Federal Reserve received two 
public comment letters pertaining to the proposed revisions from a law 
firm and a trade association. Both organizations strongly supported the 
Federal Reserve's proposal.
    Board of Governors of the Federal Reserve System, May 5, 1999.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 99-11810 Filed 5-10-99; 8:45AM]
Billing Code 6210-01-F