[Federal Register Volume 65, Number 168 (Tuesday, August 29, 2000)]
[Notices]
[Pages 52428-52429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21956]


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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 collection(s) 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: Federal Reserve Board Clearance 
Officer--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, With Revision, of the Following Report

    1. Report title: The Bank Holding Company Report of Insured 
Depository Institutions' Section 23A Transactions with Affiliates.
    Agency form numbers: FR Y-8.
    OMB control number: 7100-0126.
    Frequency: Quarterly.
    Reporters: Bank holding companies (BHC), financial holding 
companies, foreign banking organizations (FBO).
    Annual reporting hours: 169,661 hours.
    Estimated average hours per response: 7.2 hours.
    Number of respondents: 5,891.
    Small businesses are not affected.
    General description of report: This information collection is 
authorized by section 5(c) of the BHC Act (12 U.S.C. 1844 (c)) and 
section 225.5 (b) of Regulation Y (12 CFR 225.5 (b)) and is given 
confidential treatment pursuant to the Freedom of Information Act (5 
U.S.C. 552 (b)(4) and (8)).
    Abstract: The current FR Y-8 collects information on the movement 
of funds between a domestic BHC and its subsidiaries in order to 
identify broad categories of intercompany transactions and balances 
that may affect the financial condition of the subsidiary bank. The 
report also collects information on income recognized by subsidiary 
banks from other BHC members as well as information on credit extended 
by subsidiary banks to other BHC members. Domestic top-tier BHC with 
assets of $300 million or more are required to file the FR Y-8 on a 
semiannual basis (June and December). Also, interim reporting is 
currently required within ten calendar days of certain large asset 
transfers.
    Current actions: On June 6, 2000, the Federal Reserve issued a 
Federal Register notice (65 FR 35934) requesting public comment on a 
proposal to completely revise the FR Y-8. The Federal Reserve proposed 
to delete the current information on the FR Y-8 and collect fourteen 
items of information on section 23A covered transactions. The comment 
period ended on August 7, 2000. The Federal Reserve received comments 
from eight banking organizations on the proposed revisions to the FR Y-
8. Commenters suggested three alternatives for reducing burden: (1) 
monitor compliance with section 23A of the Federal Reserve Act through 
the examination process or by adding limited amount of information to 
the consolidated or parent-only BHC financial statements; (2) exempt or 
limit the number of respondents by using a size or materiality 
threshold or only require reporting by institutions with identifiable 
compliance issues and (3) eliminate the reporting of maximum aggregate 
amounts outstanding during the quarter. In addition to the suggestions 
for reducing burden, several commenters also suggested extending the 
due date for filing from 30 to 60 days and delaying the implementation 
of the revised report.
    In response to public comments, the Federal Reserve will implement 
the revised FR Y-8 in December 2000. However, the Federal Reserve 
continues to believe, as proposed, that a separate report collected on 
an individual insured depository institution basis for all insured 
depository institutions that are owned by BHCs or FBOs is necessary to 
monitor compliance with section 23A. The information requested at the 
end of each reporting period as well as the maximum amount during the 
period is necessary to monitor compliance. The Federal Reserve 
believes, as pointed out by three commenters, that insured depository 
institutions should already, on an ongoing basis, have established 
internal control systems to monitor their section 23A covered 
transactions and, as a

[[Page 52429]]

result, should be able to provide all the information requested on the 
revised reporting form.

Discontinuance of the Following Report Under OMB Delegated 
Authority

    Report title: Report of Intercompany Transactions for Foreign 
Banking Organizations and their U.S. Bank Subsidiaries.
    Agency form number: FR Y-8f.
    OMB control number: 7100-0127.
    Frequency: Semi-annually, and interim reporting required for 
certain large asset transfers.
    Reporters: Bank holding companies as defined by section 2(a) of the 
Bank Holding Company Act with at least $300 million in total 
consolidated assets that are organized under the laws of a foreign 
country and principally engaged in banking outside the United States.
    Annual reporting hours: 360 hours.
    Estimated average hours per response: 3 hours.
    Number of respondents: 58 semiannual respondents; 4 interim 
respondents.
    Small businesses are not affected.
    General description of report: This information collection is 
authorized by section 5(c) of the Bank Holding Company Act (12 U.S.C. 
1844(c)) and section 225.5(b) of Regulation Y (12 CFR 225.5(b)) and is 
given confidential treatment pursuant to the Freedom of Information Act 
(5 U.S.C. 552(b)(8)).
    Abstract: This report provides the Federal Reserve System with 
information on intercompany transactions between FBOs and their U.S. 
bank subsidiaries. It enables the Federal Reserve to monitor and 
supervise intercompany flows of funds to ensure that U.S. subsidiary 
banks are not engaging in any unsafe and unsound practices with their 
foreign owners. This report supplements the Board's global framework 
for the supervision of the U.S. operations of foreign banks. In 
addition, it aids in determining whether a foreign banking organization 
serves as a source of strength to its U.S. subsidiary.
    Current Actions: On June 6, 2000, the Federal Reserve issued a 
Federal Register notice (65 FR 35934) requesting public comment on a 
proposal to completely revise the FR Y-8. The Federal Reserve proposed 
to delete the current information on the FR Y-8 and collect fourteen 
items of information on section 23A covered transactions. The Federal 
Reserve also proposed to add FBOs that directly own U.S. subsidiary 
banks to the reporting panel of the revised FR Y-8 and to discontinue 
the FR Y-8f. The comment period ended on August 7, 2000. No comments 
were received on the discontinuance of the FR Y-8f.

    Board of Governors of the Federal Reserve System, August 23, 
2000.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 00-21956 Filed 8-28-00; 8:45 am]
BILLING CODE 6210-01-P