[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] ======================================================================= ----------------------------------------------------------------------- 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) [[Page 25343]] 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 [[Page 25344]] 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