[Federal Register Volume 67, Number 78 (Tuesday, April 23, 2002)]
[Notices]
[Pages 19755-19757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-9864]


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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, without revision, of the following reports:

1. Report titles: Registration Statement for Persons Who Extend Credit 
Secured by Margin Stock (Other Than Banks, Brokers, or Dealers); 
Deregistration Statement for Persons Registered Pursuant to Regulation 
U; Statement of Purpose for an Extension of Credit Secured by Margin 
Stock by a Person Subject to Registration Under Regulation U; Annual 
Report; Statement of Purpose for an Extension of Credit by a Creditor; 
and Statement of Purpose for an Extension of Credit Secured by Margin 
Stock
Agency form numbers: FR G-1, FR G-2, FR G-3, FR G-4, FR T-4, FR U-1
OMB control numbers: 7100-0011: FR G-1, FR G-2, FR G-4; 7100-0018: FR 
G-3; 7100-0019: FR T-4; and 7100-0115: FR U-1
Frequency: FR G-1, FR G-2, FR G-3, FR T-4, and FR U-1: on occasion FR 
G-4: annual
Reporters: Individuals and business
Annual reporting hours: 1,901 reporting; 252,978 recordkeeping
Estimated average hours per response: FR G-1: 2.5 hours; FR G-2: 15 
minutes; FR G-3: 10 minutes; FR G-4: 2.0 hours; FR T-4: 10 minutes; and 
FR U-1: 10 minutes
Number of respondents: FR G-1: 98; FR G-2: 65; FR G-3: 500; FR G-4: 
820; FR T-4: 250; and FR U-1: 6,971
Small businesses are affected.
    General description of report: These information collections are 
mandatory (15 U.S.C. 78g). The information in the FR G-1 and FR G-4 is 
given confidential treatment (5 U.S.C. 552(b)(4)). The FR G-2 does not 
contain confidential information. The FR G-3, FR T-4, and FR U-1 are 
not submitted to the Federal Reserve and, as such, no issue of 
confidentiality arises.
    Abstract: The Securities Exchange Act of 1934 ('34 Act) authorizes 
the Board to regulate securities credit issued by banks, brokers and 
dealers, and other lenders. The purpose statements, FR U-1, FR T-4, and 
FR G-3, are recordkeeping requirements for banks, brokers and dealers, 
and other lenders, respectively, to document the purpose of their loans 
secured by margin stock. Other lenders also must register and 
deregister with the Federal Reserve using the FR G-1 and FR G-2, 
respectively, and must file an annual report (FR G-4). The Federal 
Reserve uses the data to identify lenders subject to Regulation U, to 
verify compliance with Regulations T, U, and X, and to monitor margin 
credit.

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

1. Report title: Annual Daylight Overdraft Capital Report for U.S. 
Branches and Agencies of Foreign Banks
Agency form number: FR 2225
OMB control number: 7100-0216
Frequency: Annual
Reporters: foreign banks with U.S. branches or agencies
Annual reporting hours: 44
Estimated average hours per response: 1.0
Number of respondents: 44
Small businesses are not affected.
General description of report: This information collection is voluntary 
(12 U.S.C. 248(i), 248-l, and 464) and is not given confidential 
treatment.
Abstract: This report was implemented in March 1986 as part of the 
procedures used to administer the Federal Reserve Board's Payments 
System Risk (PSR) policy. A key component of the PSR policy is a limit, 
or a net debit cap, on an institution's negative intraday balance in 
its Federal Reserve account. The Federal Reserve calculates an 
institution's net debit cap by applying the multiple associated with 
the net debit cap category to the institution's capital. For foreign 
banking organizations (FBOs), a percentage of the FBO's capital 
measure, known as the U.S. capital equivalency, is used to calculate 
the FBO's net debit cap. Currently, an FBO with U.S. branches or 
agencies may voluntarily file the FR 2225 to provide the Federal 
Reserve with its capital measure. Because an FBO that files the FR 2225 
may be able to use its total capital in the net debit cap calculation, 
an FBO seeking to maximize its daylight overdraft capacity may find it 
advantageous to file the FR 2225. An FBO that does not file FR 2225

[[Page 19756]]

may use an alternative capital measure based on its nonrelated 
liabilities.
Current Actions: On January 29, 2002, the Board published proposed 
changes to this information collection and the comment period ended 
April 1, 2002 (67 FR 4258). There were no public comments received. The 
Board has approved the changes, as originally proposed.
    The Federal Reserve Board has revised its PSR policy regarding the 
calculation of an FBO's net debit cap, described in detail in the 
Federal Register notice published December 13, 2001 (66 FR 64419). The 
revised PSR policy modifies the criteria used to determine the U.S. 
capital equivalency for an FBO. There are no changes to the FR 2225 
reporting form; however, the reporting instructions will be modified to 
correspond with the revised policy. The revisions to the FR 2225 
instructions are summarized below.
    The revised PSR policy (1) eliminates the Basle Capital Accord 
(BCA) criteria and replaces it with the strength of support assessment 
(SOSA) rankings and financial holding company (FHC) status in 
determining U.S. capital equivalency for an FBO, (2) raises the 
percentage of capital used in calculating U.S. capital equivalency for 
certain FBOs, and (3) revises the definition of an alternative measure 
for U.S. capital equivalency. The SOSA ranking is composed of four 
factors, including the FBO's financial condition and prospects, the 
system of supervision in the FBO's home country, the record of the home 
country's government in support of the banking system or other sources 
of support for the FBO; and transfer risk concerns. Transfer risk 
relates to the FBO's ability to access and transmit U.S. dollars, which 
is an essential factor in determining whether an FBO can support its 
U.S. operations. The SOSA ranking is based on a scale of 1 through 3, 
with 1 representing the lowest level of supervisory concern.
    Specifically, the revised PSR policy allows U.S. capital 
equivalency to equal the following:
     35 percent of capital for FBOs that are FHCs
     25 percent of capital for FBOs that are not FHCs and have 
a strength of support assessment ranking (SOSA) of 1
     10 percent of capital for FBOs that are not FHCs and are 
ranked a SOSA 2
     5 percent of ``net due to related depository 
institutions'' for FBOs that are not FHCs and are ranked a SOSA 3.
2. Report title: Report of Net Debit Cap
Agency form number: FR 2226
OMB control number: 7100-0217
Frequency: Annual
Reporters: depository institutions, Edge and agreement corporations, 
U.S. branches and agencies of foreign banks
Annual reporting hours: 1,902
Estimated average hours per response: 1.0
Number of respondents: 1,902
Small businesses are not affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 248(i), 248-l, and 464) and may be accorded confidential 
treatment under the Freedom of Information Act (5 U.S.C. 552 (b)(4)).
Abstract: The Federal Reserve Board's Payment System Risk (PSR) policy 
relies in part on the efforts of individual institutions to identify, 
control, and reduce their exposure. The Federal Reserve collects these 
resolutions annually to provide information that is essential for their 
administration of the PSR policy. The Report of Net Debit Cap comprises 
three resolutions, located in Appendix B of the Guide to the Federal 
Reserve's Payments System Risk Policy, which are filed by an 
institution's board of directors depending on the institution's needs. 
Two of the three resolutions are used by institutions to establish a 
capacity for daylight overdrafts that is greater than the capacity that 
is typically assigned by a Reserve Bank. The first resolution is used 
to establish a self-assessed net debit cap, whereas the second 
resolution is used to establish a de minimis net debit cap. The third 
resolution is used by institutions to establish an interaffiliate 
transfer arrangement.
Current Actions: On January 29, 2002, the Board published proposed 
changes to this information collection and the comment period ended 
April 1, 2002 (67 FR 4258). There were no public comments received. The 
Board has approved the changes, as originally proposed.
    The Federal Reserve Board has revised its PSR policy regarding 
additional collateralized capacity and interaffiliate transfer 
arrangements described in detail in the \Federal Register\ notice 
published December 13, 2001 (66 FR 64419). The Federal Reserve will add 
a two-part model resolution to Appendix B used to establish additional 
collateralized capacity and eliminate the model resolution used to 
establish an interaffiliate transfer arrangement. In addition, the 
order of the model resolutions in Appendix B will be changed. The 
revisions are described below in detail.
    Revisions to Appendix B
     Collateralized Capacity (3a) - Depository institutions 
with self-assessed net debit caps that request additional daylight 
overdraft capacity must submit, to their Administrative Reserve Banks, 
written justification to support the request for the additional 
capacity. In evaluating a depository institution's request, the 
Administrative Reserve Bank will review the institution's daylight 
overdraft levels and financial condition. If the Administrative Reserve 
Bank approves the request, the depository institution will need to file 
the collateralized capacity resolution. This resolution was designed to 
specify the amount, if any, of Reserve Bank approved collateral pledged 
and the maximum daylight overdraft capacity amount.
     Collateralized Capacity: Supplement for Securities In-
transit (3b) - If a depository institution has been approved to receive 
additional collateralized daylight overdraft capacity and pledges 
securities in transit to support the additional capacity, the 
depository institution will need to file a new resolution 3b. The 
Administrative Reserve Bank may accept securities in transit on the 
Fedwire book-entry securities system as collateral to support an 
institution's maximum daylight overdraft capacity level. Securities in 
transit refer to book-entry securities transferred over Fedwire's 
National Book-Entry System that have been purchased by a depository 
institution, but not yet paid for and owned by the institution's 
customers. In transit collateral differs from stable pool collateral in 
that the value of in transit collateral regularly fluctuates intraday 
where as the value of stable pool generally does not.
     Inter-Affiliate Transfer Arrangements - The rescission of 
the interaffiliate transfer policy rule is effective on December 31, 
2001, at which time depository institutions will no longer be required 
to submit a resolution to establish an interaffiliate agreement.
    The order of the model resolutions located in Appendix B will be 
changed to:
     De Minimis Cap
     Self-Assessment Cap
     Collateralized Capacity (3a)
     Collateralized Capacity: Supplement for Securities In-
transit (3b)
3. Report titles: Application for Prior Approval to Become a Bank 
Holding Company, or for a Bank Holding Company to Acquire an Additional 
Bank or Bank Holding Company; Notice for Prior Approval to Become a 
Bank Holding Company, or for a Bank Holding Company to Acquire an

[[Page 19757]]

Additional Bank or Bank Holding Company; and Notification for Prior 
Approval to Engage Directly or Indirectly in Certain Nonbanking 
Activities.
Agency form numbers: FR Y-3, FR Y-3N, and FR Y-4
OMB control number: 7100-0121
Frequency: Event-generated
Reporters: Corporations seeking to become bank holding companies, or 
bank holding companies and state chartered banks that are members of 
the Federal Reserve System
Annual reporting hours: 22,003
Estimated average hours per response: FR Y-3, Section 3(a)(1): 49 
hours;
    FR Y-3, Section 3(a)(3) and 3(a)(5): 59.5 hours;
    FR Y-3N, Sections 3(a)(1), 3(a)(3), and 3(a)(5): 5 hours;
    FR Y-4, complete notification: 12 hours;
    FR Y-4, expedited notification: 5 hours; and
    FR Y-4, post-consummation: 0.5 hours.
Number of respondents: 823
Small businesses are affected.
General description of reports: This information collection is 
mandatory (12 U.S.C. 1842(a)(1), 1844(c), and 1843(c)(8)) and may be 
accorded confidential treatment under the Freedom of Information Act (5 
U.S.C. 552 (b)(4)).
Abstract: The Federal Reserve requires the application and the 
notifications for regulatory and supervisory purposes and to allow the 
Federal Reserve to fulfill its statutory obligations under the Bank 
Holding Company Act of 1956 (the BHC Act). The forms collect 
information concerning proposed BHC formations, acquisitions, and 
mergers, and proposed nonbanking activities. The Federal Reserve must 
obtain this information to evaluate each individual transaction with 
respect to permissibility, competitive effects, adequacy of financial 
and managerial resources, net public benefits, and impact on the 
convenience and needs of affected communities.
Current Actions: On January 29, 2002, the Board published proposed 
changes to this information collection and the comment period ended 
April 1, 2002 (67 FR 4257). There were no public comments received. The 
Board has approved the changes, as originally proposed.
    Board of Governors of the Federal Reserve System, April 17, 2002.

Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 02-9864 Filed 4-22-02; 8:45 am]
BILLING CODE 6210-01-S