[Federal Register Volume 69, Number 38 (Thursday, February 26, 2004)]
[Notices]
[Pages 8967-8969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4293]


=======================================================================
-----------------------------------------------------------------------

FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Submission for OMB 
Review; Comment Request

AGENCY: Board of Governors of the Federal Reserve System (Board)

ACTION: Notice of information collection to be submitted to OMB for 
review and approval under the Paperwork Reduction Act of 1995.

-----------------------------------------------------------------------

SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (44 U.S.C. chapter 35), the Board, the Federal Deposit 
Insurance Corporation (FDIC), and the Office of the Comptroller of the 
Currency (OCC) (the ``agencies'') may not conduct or sponsor, and the 
respondent is not required to respond to, an information collection 
unless it displays a currently valid Office of Management and Budget 
(OMB) control number. The Board hereby gives notice that it plans to 
submit to the Office of Management and Budget (OMB) on behalf of the 
agencies a request for review of the information collection described 
below.
    On December 5, 2003, the agencies, under the auspices of the 
Federal Financial Institutions Examination Council (FFIEC), requested 
public comment for 60 days on the revision,

[[Page 8968]]

without extension, of the currently approved information collection: 
the Report of Assets and Liabilities of U.S. Branches and Agencies of 
Foreign Banks (FFIEC 002). The comment period expired February 3, 2004.

DATES: Comments must be submitted on or before March 29, 2004.

ADDRESSES: Interested parties are invited to submit written comments to 
the agency listed below. All comments, which should refer to the OMB 
control number, will be shared among the agencies.Written comments, 
which should refer to the ``Report of Assets and Liabilities of U.S. 
Branches and Agencies of Foreign Banks, 7100-0032,'' should be mailed 
to Jennifer J. Johnson, Secretary, Board of Governors of the Federal 
Reserve System, 20th Street and Constitution Avenue, N.W., Washington, 
DC 20551. Please consider submitting your comments through the Board's 
web site at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm; 
by e-mail to [email protected]; or by fax to the Office 
of the Secretary at 202/452-3819 or 202/452-3102. Rules proposed by the 
Board and other federal agencies may also be viewed and commented on at 
www.regulations.gov. All public comments are available from the Board's 
web site at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, except as necessary for technical reasons. Accordingly, your 
comments will not be edited to remove any identifying or contact 
information. Public comments may also be viewed electronically or in 
paper in Room MP-500 of the Board's Martin Building (C and 20th 
Streets, N.W.) between 9:00 a.m. and 5:00 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: A draft copy of the proposed FFIEC 002 
reporting form may be obtained at the FFIEC's web site (www.ffiec.gov/forms002.htm). A copy of the proposed revisions to the collection of 
information may also be requested from Cindy Ayouch, Board Clearance 
Officer, (202) 452-3829, Division of Research and Statistics, Board of 
Governors of the Federal Reserve System, 20th and C Streets, NW, 
Washington, DC 20551. Telecommunications Device for the Deaf (TDD) 
users may call (202) 263-4869.

SUPPLEMENTARY INFORMATION:

Proposal to revise the following currently approved collection of 
information:

    Report Title: Report of Assets and Liabilities of U.S. Branches and 
Agencies of Foreign Banks.
    Form Number: FFIEC 002.
    OMB Number: 7100-0032
    Frequency of Response: Quarterly
    Affected Public: U.S. branches and agencies of foreign banks
    Estimated Number of Respondents: 295
    Estimated Total Annual Responses: 1,180
    Estimated Time per Response: 22.75 burden hours
    Estimated Total Annual Burden: 26,845 burden hours
    General Description of Report: This information collection is 
mandatory: 12 U.S.C. 3105(b)(2), 1817(a)(1) and (3), and 3102(b). 
Except for select sensitive items, this information collection is not 
given confidential treatment (5 U.S.C. 552(b)(8)).
    Abstract: On a quarterly basis, all U.S. branches and agencies of 
foreign banks (U.S. branches) are required to file detailed schedules 
of assets and liabilities in the form of a condition report and a 
variety of supporting schedules. This information is used to fulfill 
the supervisory and regulatory requirements of the International 
Banking Act of 1978. The data are also used to augment the bank credit, 
loan, and deposit information needed for monetary policy and other 
public policy purposes. The Federal Reserve System collects and 
processes this report on behalf of all three agencies.
    Current Actions: In response to the December 5, 2003, notice (68 FR 
68082), the agencies received one comment letter from a Federal Reserve 
district bank. The bank supported the proposed revisions and suggested 
some additional instructional clarifications with regard to repurchase 
agreements. These clarifications will be incorporated as appropriate.
    The revisions to the FFIEC 002 have been approved by the FFIEC as 
originally proposed and are summarized below. The agencies will 
implement the changes as of the March 31, 2004, reporting date.

Schedule L-Derivatives and Off-Balance-Sheet Items

    Modified Line Item 12, ``Gross fair values of derivative 
contracts,'' to remove the following requirement: ``The following items 
should be completed by those branches or agencies with total assets of 
$100 million or more.'' The exemption from reporting the fair values of 
derivative contracts for branches and agencies with less than 
dollar;100 million in assets originated when derivatives were 
considered off-balance sheet items and predates FASB Statement No. 133, 
Accounting for Derivative Instruments and Hedging Activities (FAS 133), 
which took effect in 2001. FAS 133 requires all derivatives to be 
measured at fair value and reported on the balance sheet as assets or 
liabilities. Because branches and agencies with less than $100 million 
in assets that have derivatives now have to regularly determine their 
fair value for reporting purposes, they have the information necessary 
to disclose the fair value of their derivatives in Schedule L. 
Accordingly, the agencies are eliminating this disclosure exemption. 
The fair value data on derivatives will complement the data that 
branches and agencies with less than $100 million in assets currently 
report on the notional amount of their derivative contracts.

Schedule M-Due from/Due to Related Institutions in the U.S. and in 
Foreign Countries (CONFIDENTIAL)

    1. Modified Line Item 12, ``Gross fair values of derivative 
contracts,'' to remove the following requirement: ``The following items 
should be completed by those branches or agencies with total assets of 
dollar;100 million or more.'' The rationale for the proposed change is 
similar to the justification above for the comparable change to 
Schedule L.
    2. Added Memoranda items 1.a, ``Gross positive fair value,'' and 
1.b, ``Gross negative fair value'' to Memorandum item 1, ``Notional 
amount of all credit derivatives on which the reporting branch or 
agency is the guarantor.'' The new items will provide a better measure 
of credit and market risk for credit derivatives entered into with 
related depository institutions, particularly for branches and agencies 
with large positions in such credit derivatives.
    3. Added Memoranda items 2.a, ``Gross positive fair value,'' and 
2.b, ``Gross negative fair value'' to Memorandum item 2, ``Notional 
amount of all credit derivatives on which the reporting branch or 
agency is the beneficiary.'' The rationale for the proposed change is 
the same as the justification above for adding items to Memorandum item 
1.

Request for Comment

    Comments submitted in response to this Notice will be shared among 
the agencies and will be summarized or included in the Board's request 
for OMB approval. All comments will become a matter of public record. 
Written comments should address the accuracy of the burden estimates 
and ways to minimize burden as well as other relevant aspects of the 
information collection requests. Comments are invited on:

[[Page 8969]]

    (a) Whether the proposed collection of information is necessary for 
the proper performance of the agencies' functions, including whether 
the information has practical utility;
    (b) The accuracy of the agencies' estimate of the burden of the 
information collection, including the validity of the methodology and 
assumptions used;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    (e) Estimates of capital or start up costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Board of Governors of the Federal Reserve System, February 20, 
2004.
Jennifer J. Johnson
Secretary of the Board.
[FR Doc. 04-4293 Filed 2-25-04; 8:45 am]
BILLING CODE 6210-01-S