[Federal Register Volume 67, Number 51 (Friday, March 15, 2002)]
[Notices]
[Pages 11697-11699]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6306]


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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: 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 OMB83-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)

SUPPLEMENTARY INFORMATION:

Final approval under OMB delegated authority of the implementation 
of the following report:

1. Report title: Intermittent Survey of Businesses
Agency form number: FR 1374
OMB control number: 7100-0302
Frequency: Biweekly and semiannually
Reporters: Purchasing managers, economists, or other knowledgeable 
individuals at business firms
Annual reporting hours: 125 hours
Estimated average hours per response: 15 minutes
Number of respondents: biweekly, 10; semiannually, 120
Small businesses are affected.
General description of report: This information collection is voluntary 
(12 U.S.C. Secs.  225a, 263, and 15 U.S.C. Sec. 1691b) and is given 
confidential treatment (5 U.S.C. 552(b)(6)).
Abstract: The proposed survey would be used by the Federal Reserve to 
gather information that would be specifically tailored to the Federal 
Reserve's policy and operational responsibilities. It is necessary to 
conduct the survey biweekly to keep up with the rapidly changing 
developments in the economy and to provide timely information to staff 
and Board members. Usually, the surveys would be conducted by staff 
economists telephoning purchasing managers, economists, or other 
knowledgeable individuals at selected, relevant businesses. The content 
of the questions and the businesses contacted would vary depending on 
changing developments in the economy.

Final approval under OMB delegated authority of the extension for 
three years, with revision, of the following reports:

1. Report title: Notification of Foreign Branch Status
Agency form number: FR 2058
OMB control number: 7100-0069
Frequency: on occasion
Reporters: member banks, bank holding companies, Edge and agreement 
corporations
Annual reporting hours: 38 hours
Estimated average hours per response: 15 minutes
Number of respondents: 150
Small businesses are not affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 321, 601, 602, 615, and 1844(c)) and is not given 
confidential treatment.
Abstract: Member banks, bank holding companies, and Edge and agreement 
corporations are required to notify the Federal Reserve System of the 
opening, closing, or relocation of an foreign branch. The notice 
requires information

[[Page 11698]]

on the location and extent of service provided by the branch and is 
filed within thirty days of the change in status. The Federal Reserve 
System needs the information to fulfill supervisory responsibilities 
specified in Regulation K, including the supervision of foreign 
branches of U.S. banking organizations. The information is needed in 
order to evaluate the organization's international exposure and to 
update the Federal Reserve's structure files on U.S. banking 
organizations.
    Regulation K, ``International Banking Operations,'' sets forth the 
conditions under which a foreign branch may be established. According 
to the final rule on Regulation K, published in the Federal Register on 
October 26, 2001 (66 FR 54345), organizations must give thirty days 
prior notice to the Board before the establishment of branches in the 
first two foreign countries. For subsequent branch establishments into 
additional foreign countries, organizations must give the Federal 
Reserve System twelve days prior written notice. The FR K-1, 
``International Application and Prior Notifications Under Subparts A 
and C of Regulation K'' (OMB No. 7100-0107) will be used for these 
notices. Organizations use the FR 2058 notification to notify the 
Federal Reserve when any of these branches has been opened, closed, or 
relocated.
Current Actions: The revisions include adding the location of the 
reporting institution and the subsidiary and a few minor technical 
clarifications.
2. Report title: International Applications and Prior Notifications 
under Subparts A and C of Regulation K
Agency form number: FR K-1
OMB control number: 7100-0107
Frequency: on occasion
Reporters: state member banks, national banks, bank holding companies, 
Edge and agreement corporations, and certain foreign banking 
organizations
Annual reporting hours: 695 hours
Estimated average hours per response: Attachments A and B, 11.5 hours; 
Attachments C through G, 10 hours; Attachments H and I, 15.5 hours; 
Attachment J, 10 hours; Attachment K, 20 hours
Number of respondents: 39
Small businesses are not affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 601-604(a), 611-631, 1843(c)(13), 1843(c)(14), and 1844(c)) 
and is not given confidential treatment. The applying organization has 
the opportunity to request confidentiality for information that it 
believes will qualify for a Freedom of Information Act exemption.
Abstract: The FR K-1 comprises a set of applications and notifications 
that govern the formation of Edge or agreement corporations and the 
international and foreign activities of U.S. banking organizations. The 
applications and notifications collect information on projected 
financial data, purpose, location, activities, and management. The 
Federal Reserve requires these applications for regulatory and 
supervisory purposes and to allow the Federal Reserve to fulfill its 
statutory obligations under the Federal Reserve Act and the Bank 
Holding Company Act of 1956.
Current Actions: The changes incorporate revisions to Regulation K, 
published in the Federal Register on October 26, 2001, which became 
effective November 26, 2001 (66 FR 54345). Technical changes to each of 
the existing attachments conform with the new regulatory language. One 
new attachment was included for applications by U.S. banking 
organizations to invest in excess of 10 percent of capital and surplus 
in Edge corporations. This change is necessary as a result of The 
Economic Growth and Regulatory Paperwork Reduction Act of 1996. In 
addition, the Federal Reserve added certain new items, which are often 
requested after the application has been filed. Finally, several items 
that are no longer relevant have been deleted from the attachments.
3. Report title: Consolidated Financial Statements for Bank Holding 
Companies
Agency form number: FR Y-9C
OMB control number: 7100-0128
Effective Date: March 31, 2002
Frequency: Quarterly
Reporters: Bank holding companies
Annual reporting hours: 252,675 hours
Estimated average hours per response: 33.98 hours
Number of respondents: 1,859
Small businesses are affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 1844(b) and (c)). Confidential treatment is not routinely 
given to the data in these reports. However, confidential treatment for 
the reporting information, in whole or in part, can be requested in 
accordance with the instructions to the form.
Abstract: The FR Y-9C consists of standardized consolidated financial 
statements similar to the Federal Financial Institutions Examination 
Council (FFIEC) Consolidated Reports of Condition and Income (Call 
Reports) (FFIEC 031 & 041; OMB No.7100-0036). The FR Y-9C is filed 
quarterly by top-tier bank holding companies that have total assets of 
$150 million or more and by lower-tier bank holding companies that have 
total consolidated assets of $1 billion or more. In addition, multibank 
holding companies with total consolidated assets of less than $150 
million with debt outstanding to the general public or engaged in 
certain nonbank activities must file the FR Y-9C.
Current Actions: On December 21, 2001, the Board published proposed 
changes to this reporting form and the comment period ended on February 
19, 2002 (66 FR 65964). There were no public comments received. The 
Board has approved the proposed changes effective with the March 31, 
2002, reporting date with the following changes:
 modify certain aspects of the proposal relating to the 
reporting of federal funds transactions and securities resale/
repurchase agreements; and
 modify Schedule HC-R, Regulatory Capital, so that the capital 
calculations in this schedule are consistent with amended regulatory 
capital standards.
These changes parallel the modified revisions to the March 31, 2002, 
Call Reports, recently adopted by the FFIEC and are discussed in 
further detail below.
Federal Funds Transactions and Securities Resale/Repurchase Agreements
As indicated above, the Federal Reserve originally proposed to separate 
the existing balance sheet (Schedule HC) items for ``Federal funds sold 
and securities purchased under agreements to resell'' and for ``Federal 
funds purchased and securities sold under agreements to repurchase'' 
into two asset and two liability items. This proposed change was 
parallel to a proposed change for the commercial bank Call Report for 
March 31, 2002.
As proposed, the reporting of amounts as ``Federal funds sold'' (the 
asset item) and ``Federal funds purchased'' (the liability item) would 
have been based on the longstanding definition of ``federal funds 
transactions,'' i.e., the lending and borrowing of immediately 
available funds for one business day or under a continuing contract, 
regardless of the nature of the contract or of the collateral, if any. 
Under this definition, securities resale/repurchase agreements 
involving the receipt of immediately available funds that mature in one 
business day or roll over under a continuing contract are considered 
federal funds transactions.
As a result of comments received on the proposal for the commercial 
bank Call Report revisions, the FFIEC and the agencies decided to 
modify the original

[[Page 11699]]

proposal. The agencies decided to revise the definition of ``federal 
funds transactions.'' As revised, federal funds sold and purchased 
would be limited to transactions in domestic offices only and would not 
include:
 any securities resale/repurchase agreements,
 overnight Federal Home Loan Bank advances, or
 lending and borrowing transactions in foreign offices 
involving immediately available funds with an original maturity of one 
business day or under a continuing contract.
Lending and borrowing transactions in foreign offices involving 
immediately available funds with an original maturity of one business 
day or under a continuing contract that are not securities resale/
repurchase agreements will begin to be reported in ``Loans and leases, 
net of unearned income'' and ``Other borrowed money,'' respectively. 
The Federal Reserve decided to adopt the same modifications for the FR 
Y-9C.
Regulatory Capital
On November 29, 2001, the agencies published a final rule revising the 
regulatory capital treatment of recourse arrangements and direct credit 
substitutes, including residual interests and credit-enhancing 
interest-only strips, as well as asset-backed and mortgage-backed 
securities (66 FR 59613). This final rule took effect on January 1, 
2002. Any transactions settled on or after that date are subject to the 
rule. However, for transactions settled before January 1, 2002, that 
result in increased capital requirements under the final rule, banks 
may delay the application of the final rule to those transactions until 
December 31, 2002. In response to this final rule and comparable 
changes on the commercial bank Call Reports, the Federal Reserve is 
revising the instructions for reporting these types of exposures in 
Schedule HC-R, Regulatory Capital, so that the capital calculations in 
this schedule are consistent with the amended regulatory capital 
standards.
4. Report title: Parent Company Only Financial Statements for Large 
Bank Holding Companies
Agency form number: FR Y-9LP
OMB control number: 7100-0128
Effective Date: March 31, 2002
Frequency: Quarterly
Reporters: Bank holding companies
Annual reporting hours: 40,495 hours
Estimated average hours per response: 4.55 hours
Number of respondents: 2,225
Small businesses are affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 1844(b) and (c)). Confidential treatment is not routinely 
given to the data in this report. However, confidential treatment for 
the reporting information, in whole or in part, can be requested in 
accordance with the instructions to the form.
Abstract: The FR Y-9LP includes standardized financial statements filed 
quarterly on a parent company only basis from each bank holding company 
that files the FR Y-9C. In addition, for tiered bank holding companies, 
a separate FR Y-9LP must be filed for each lower tier bank holding 
company.
Current actions: On December 21, 2001, the Board published proposed 
changes to this reporting form and the comment period ended on February 
19, 2002 (66 FR 65964). There were no public comments received. The 
Board has approved the proposed changes to the FR Y-9LP, as originally 
described, effective with the March 31, 2002, reporting date.
5. Report title: Parent Company Only Financial Statements for Small 
Bank Holding Companies
Agency form number: FR Y-9SP
OMB Control number: 7100-0128
Effective Date: June 30, 2002
Frequency: Semiannual
Reporters: Bank holding companies
Annual reporting hours: 28,273 hours
Estimated average hours per response: 3.89 hours
Number of respondents: 3,634
Small businesses are affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 1844(b) and (c)). Confidential treatment is not routinely 
given to the data in this report. However, confidential treatment for 
the reporting information, in whole or in part, can be requested in 
accordance with the instructions to the form.
Abstract: The FR Y-9SP is a parent company only financial statement 
filed on a semiannual basis by one-bank holding companies with total 
consolidated assets of less than $150 million, and multibank holding 
companies with total consolidated assets of less than $150 million that 
meet certain other criteria. This report, an abbreviated version of the 
more extensive FR Y-9LP, is designed to obtain basic balance sheet and 
income statement information for the parent company, information on 
intangible assets, and information on intercompany transactions.
Current actions: On December 21, 2001, the Board published proposed 
changes to this reporting form and the comment period ended on February 
19, 2002 (66 FR 65964). There were no public comments received. The 
Board has approved the proposed changes to the FR Y-9SP, as originally 
described, effective with the June 30, 2002, reporting date.
6. Report title: Supplement to the Consolidated Financial Statements 
for Bank Holding Companies
Agency form number: FR Y-9CS
OMB control number: 7100-0128
Effective Date: March 31, 2002
Frequency: on occasion
Reporters: Bank holding companies
Annual reporting hours: 1,200 hours
Estimated average hours per response: 0.50 hour
Number of respondents: 600
Small businesses are affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 1844(b) and (c)). The Federal Reserve considers the 
information on the current version of the report form confidential 
pursuant to the Freedom of Information Act (5 U.S.C. 554(b)(4)), except 
for item 4.
Abstract: The FR Y-9CS is a free form supplement that may be utilized 
to collect any additional information deemed to be critical and needed 
in an expedited manner. It is intended to supplement the FR Y-9C and FR 
Y-9SP reports. Due to the enactment of the GLB Act in 1999, the current 
version of this supplement was implemented in 2000 to collect basic 
information about the new activities of FHCs.
Current actions: On December 21, 2001, the Board published proposed 
changes to this reporting form and the comment period ended on February 
19, 2002 (66 FR 65964). There were no public comments received. The 
Board has approved the proposed changes to the FR Y-9CS, as originally 
described, effective with the March 31, 2002, reporting date.

    Board of Governors of the Federal Reserve System, March 12, 
2002.
Jennifer J. Johnson
Secretary of the Board.
[FR Doc. 02-6306 Filed 3-14-02; 8:45 am]
BILLING CODE 6210-01-S