[Federal Register Volume 64, Number 139 (Wednesday, July 21, 1999)]
[Notices]
[Pages 39142-39143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18542]
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FEDERAL RESERVE SYSTEM
Modification of Procedures for the September 1999 Changes in
Deposit Reporting Frequency
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice.
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SUMMARY: The Board is amending its procedures for shifting depository
institutions among deposit reporting categories for September 1999. The
adjustments to the usual category shift procedures are intended to help
reduce the number and extent of modifications needed in the data
processing systems of depository institutions close to the time of the
century date change. The adjustments to the usual procedures are
temporary; in September 2000, the normal category shift procedures will
be employed.
EFFECTIVE DATE: August 1, 1999.
FOR FURTHER INFORMATION CONTACT: Gretchen Weinbach, Economist, Division
of Monetary Affairs (202/452-2841). For the hearing impaired only,
Telecommunications Device for the Deaf (TDD), Diane Jenkins (202/452-
3544).
SUPPLEMENTARY INFORMATION: The Board has established five categories of
deposit reporting for administering Regulation D, Reserve Requirements
of Depository Institutions (12 CFR part 204), and for constructing and
analyzing the monetary and reserve aggregates. Every institution is
placed into one of these five categories for deposit reporting
purposes.1
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\1\ Depository institutions that are required to maintain
reserves are defined in Sec. 204.1(c) of Regulation D. Classes of
institutions subject to deposit reporting include commercial banks,
industrial banks and similar institutions, mutual or stock banks,
building or savings and loan associations, homestead associations,
credit unions, Edge and Agreement corporations and their branches,
and U.S. branches and agencies of foreign banks.
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In general, the larger the institution, the more detailed or more
frequent is its reporting. Two ``detailed reporting'' categories apply
to institutions that are not exempt from reserve
requirements.2 Institutions subject to detailed reporting
requirements file the Report of Transaction Accounts, Other Deposits
and Vault Cash (FR 2900) and, if applicable, the Report of Certain
Eurocurrency Transactions (FR 2950 or FR 2951). Institutions file the
reports either weekly or quarterly, depending on the level of the
institution's deposits. Three reduced reporting categories apply to
institutions that are exempt from reserve requirements. Institutions
subject to reduced reporting file either the Quarterly Report of
Selected Deposits, Vault Cash and Reservable Liabilities (FR 2910q),
the Annual Report of Total Deposits and Reservable Liabilities (FR
2910a), or no report at all, depending on their deposit levels. Federal
Reserve staff reviews the deposit levels and reservable liabilities of
depository institutions each year and assigns institutions to new
reporting categories effective in September of each year.
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\2\ Institutions are exempt from reserve requirements if their
total reservable liabilities are equal to or less than the exemption
amount, which is indexed annually by 80 percent of the percentage
increase in total reservable liabilities of all depository
institutions measured on an annual basis as of June 30. No
adjustment is made for a decrease in total reservable liabilities.
The exemption amount effective for 1999 is $4.9 million.
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Table 1 shows the four categories of institutions that file deposit
reports with the Federal Reserve (the fifth category, non-filing
institutions, is not shown). The table shows the cutoff levels that
would normally be in effect in September 1999.
Table 1.--Deposit Report Categories
[With cutoff levels that would normally apply for September 1999]
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Institutions exempt from reserve Institutions not exempt from
requirements (Reservable liabilities reserve requirements (Reservable
$4.9 million) liabilities > $4.9 million)
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Quarterly Quarterly
Annual Reporters Reporters Reporters Weekly Reporters
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Have Have Have Have
deposits < $52.6 deposits $52.6 million $81.9 million thn-eq> $81.9
thn-eq>$4.9 million.
million
File a 2- File a 6- File a File a
item report (FR item report (FR 14-item report 14-item report
2910a) 2910q) (FR 2900) (FR 2900).
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[[Page 39143]]
The Board and other supervisory agencies required depository
institutions to have their data processing systems ready for the
century date change by June 30 and to manage any subsequent changes in
their systems with great care. For some institutions, changes in
reporting requirements due to a report category reclassification would
necessitate system changes between August and September, 1999.
Under normal circumstances, there are six types of reporting
category shifts that are compulsory: non-exempt quarterly reporters
that shift to non-exempt weekly reporters, exempt quarterly reporters
that shift to non-exempt weekly or quarterly reporters, and exempt
annual reporters that shift to exempt quarterly reporters or non-exempt
weekly or quarterly reporters. (Other reclassifications represent
downward shifts to less burdensome reporting categories, which are
permissible but not compulsory.)
Table 2.--Changes in Compulsory Reporting Category Shifts in 1999 Normal
Category Shifts in 1999
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From To Status in 1999
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Non-exempt quarterly (FR Non-exempt weekly No shift required.
2900). (FR 2900). (Continue to report
quarterly on FR
2900.)
Exempt quarterly (FR 2910q). Non-exempt weekly Shift to non-exempt
(FR 2900). quarterly. (Report
quarterly on FR
2900.)
Exempt quarterly (FR 2910q). Non-exempt quarterly Shift as usual.
(FR 2900). (Report quarterly
on FR 2900.)
Exempt annual (FR 2910a).... Non-exempt weekly Shift to non-exempt
(FR 2900). quarterly. (Report
quarterly on FR
2900.)
Exempt annual (FR 2910a).... Non-exempt quarterly Shift as usual.
(FR 2900). (Report quarterly
on FR 2900.)
Exempt annual (FR 2910a).... Exempt quarterly (FR No shift required.
2910q). (Continue to report
annually on FR
2910a.)
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The Board believes that two of the six compulsory reporting
category shifts can be deferred until September 2000 without material
adverse consequences to the enforcement of reserve requirements. As
shown in Table 2, the Board has determined that any non-exempt
institution that otherwise would be required to begin filing the FR
2900 on a weekly basis will instead be allowed to continue to file the
same report on quarterly basis. In addition, institutions that have
been and remain exempt from reserve requirements (that is, have
reservable liabilities of $4.9 million or less) and that are currently
reporting annually on form FR 2910a may continue to report annually on
that form, even if their deposits have grown to a size that otherwise
would require shifting to the quarterly exempt report (FR 2910q).
Given the Board's responsibility for enforcing reserve
requirements, the deferral will not apply to any previously exempt
institution that becomes non-exempt (that is, has reservable
liabilities exceeding $4.9 million in 1999). In order to reduce the
burden on such an institution, however, it will only be required to
file the FR 2900 on a quarterly basis, even if it otherwise would have
been required to report weekly. Of the four remaining compulsory
category shifts, therefore, two will shift as usual (exempt quarterly
and annual reporters that shift to non-exempt quarterly reporters) and
two will shift to a less burdensome category than would normally apply
(exempt quarterly and annual reporters that would normally shift to
non-exempt weekly reporters will shift instead to non-exempt quarterly
reporters).
In other respects, the reporting category shift procedures will
remain unchanged. Existing weekly reporters that continue to meet the
criteria for weekly reporting would not be allowed to shift to
quarterly reporting. As usual, institutions that are allowed to shift
to a less burdensome reporting category would not be compelled to do
so. Normal category shift procedures will resume in September 2000.
By order of the Board of Governors of the Federal Reserve
System, July 15, 1999.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 99-18542 Filed 7-20-99; 8:45 am]
BILLING CODE 6210-01-P