[Federal Register Volume 64, Number 160 (Thursday, August 19, 1999)]
[Notices]
[Pages 45259-45260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21481]



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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
SUMMARY:
    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 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); 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, without revision of the following report:
    1. Report title: Recordkeeping, Reporting, and Disclosure 
Requirements in Connection with Regulation BB (Community Reinvestment).
    Agency form number: unnum Reg BB.
    OMB Control number: 7100-0197.
    Frequency: Annual.
    Reporters: State Member Banks.
    Annual reporting hours: 151,680 hours.
    Estimated average hours per response: Small business and small farm 
loan register: 219 hours; Consumer loan data: 326 hours; Other loan 
data: 25 hours; Assessment area delineation: 2 hours; Small business 
and small farm loan data: 8 hours; Community development loan data: 13 
hours; HMDA out of MSA loan data: 253 hours; Data on lending by a 
consortium or third party: 17 hours; Affiliate lending data: 38 hours; 
Strategic plan: 275 hours; Request for designation as a wholesale or 
limited purpose bank: 4 hours; and Public file: 10 hours.
    Number of respondents: Public file: 989; Small business and small 
farm loan register, Assessment area delineation, Small business and 
small farm loan data, Community development loan data, and HMDA out of 
MSA loan data: 227; Consumer loan data: 77; Other loan data: 50; Data 
on lending by a consortium or third party: 11; Affiliate lending data: 
32; Strategic plan: 6; and Request for designation as a wholesale or 
limited purpose bank: 5.
Small businesses are affected.
    General description of report: The recordkeeping, reporting, and 
disclosure requirements associated with Regulation BB are authorized by 
the Federal Reserve Act (12 U.S.C. Sec.  248) and the Community 
Reinvestment Act (12 U.S.C. Sec.  2901 et seq.) and are mandatory to 
evidence compliance. Generally, the data that are reported to the 
Federal Reserve are not considered confidential.
    Abstract: The Community Reinvestment Act (CRA) and Regulation BB 
encourage financial institutions to help meet the credit needs of their 
entire communities, consistent with safe and sound banking practices. 
The information collection associated with CRA and Regulation BB 
applies to state member banks, although not all are required to submit 
data to the Federal Reserve. The requirements imposed on the 
institutions are based primarily on the asset size of the institutions 
and whether an institution elects to comply with the optional reporting 
and recordkeeping requirements.
    State member banks (SMBs) must delineate an assessment area(s) and 
larger banks (as defined in Regulation BB) must provide a list of the 
geographies within this area(s) to the Federal Reserve. State member 
banks must keep a public file of required information. The public file 
requirements are slightly different for small banks (as defined in 
Regulation BB) or banks that were small banks during the prior calendar 
year than for banks other than small banks. SMBs must display a public 
notice in the lobby of the main office and each branch informing 
consumers about the availability of certain CRA information. Banks 
other than small banks (large banks) must maintain data on small 
business and small farm loans; small banks may elect to maintain 
information on those loans. Large banks must report aggregated data on 
small business and small farm loans and on community development loans. 
While Regulation C requires certain institutions to report Home 
Mortgage Disclosure Act loan data and maintain information on those 
loans, CRA additionally requires large banks that are HMDA reporters to 
identify the location of each home mortgage loan application, 
origination, or purchase outside the MSAs where the institution has 
offices or outside any MSA. Any bank may elect to collect and maintain 
records on consumer loans and other loan data for consideration under 
the lending test. Also, any bank may collect, maintain, and report data 
on lending by affiliates or a consortium/third party with which it is 
involved. A bank that wishes to be evaluated under its own strategic 
plan must submit that plan to the Federal Reserve and must operate 
under it for at least one year before being evaluated under it. A bank 
that wishes to be designated as a wholesale or limited purpose bank 
must make that request in writing.
    Current Actions: In May 1999 the Federal Reserve along with the 
Office of Comptroller of the Currency (OCC), and the Federal Deposit 
Insurance Corporation (FDIC), and Office of Thrift Supervision (OTS) 
published a joint notice in the Federal Register, requesting comment on 
their intent to extend the information collections for their CRA 
regulations. Pursuant to 5 CFR 1320.16, this was an initial notice and 
request for comment for the Federal Reserve; it was a final notice for 
the other agencies. The agencies' request for OMB review involved a 
reestimate of burden but no change in the underlying information 
collections.
    All four agencies received four public comment letters from banking 
trade associations and one from a community interest group. The FDIC 
and the OCC each received two letters from financial institutions. This 
final notice addresses all the comment letters received by the four 
agencies.
    The community interest group commented that the benefits of 
increased lending to underserved populations outweigh the costs and 
that the burden estimates for large banks are overstated. The four 
financial institutions commented that the burden estimates were low and 
three provided estimates of their own burden for CRA. All four banking 
trade associations commented that the new burden estimates are still 
too low, although two acknowledged that the they are improved. The four 
agencies recognize that their CRA regulations impose significant 
regulatory burden on depository institutions, and they appreciate the 
commenters' efforts to provide additional input. Although the estimates 
may not necessarily represent

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the time spent by any particular institution, the agencies believe that 
the burden estimates fairly represent the total burden on the industry 
as a whole.
    Three of the trade associations and two of the financial 
institutions commented on the specific requirements that are included 
in the burden estimates. The Federal Reserve's OMB supporting statement 
provides a detailed list of the elements included in the burden 
estimate. Two trade associations and one bank questioned whether the 
collection of information is necessary for the proper performance of 
the functions of the agency and is the least burdensome alternative. 
The community interest group expressed the opposite view, that the 
agencies cannot assess CRA performance without these data collection 
requirements. The justification for this information collection and its 
use by the Federal Reserve are also addressed in the OMB supporting 
statement. Some commenters questioned the methodology used for 
estimating the burden. As mentioned in the May 1999 Federal Register 
notice, the agencies combined the information from several sources, 
including public comments, contacts with CRA respondents, and 
knowledgeable agency staff, to derive the burden estimates.
    In addition to addressing the paperwork requirements of CRA, 
several commenters discussed broader issues, including regulatory and 
examination burden. One banking trade association also included 
recommendations addressed to OMB. These issues are not addressed here 
as they are not appropriate for this notice.

    Board of Governors of the Federal Reserve System, August 13, 
1999.
Jennifer J. Johnson
Secretary of the Board.
[FR Doc. 99-21481 Filed 8-18-99; 8:45am]
BILLING CODE 6210-01-F