[Federal Register Volume 69, Number 65 (Monday, April 5, 2004)]
[Notices]
[Pages 17660-17662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-751]


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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 collections 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: Douglas Carpenter, Supervisory 
Financial Analyst (202-452-2205) or Wanda Dreslin, Supervisory 
Financial Analyst (202-452-3515) for information concerning the 
specific bank holding company reporting requirements. The following may 
also be contacted regarding the information collection:
    Acting Federal Reserve Board Clearance Officer - Michelle Long-
Division of Research and Statistics, Board of Governors of the Federal 
Reserve System, Washington, DC 20551 (202-452-3829)
    OMB Desk Officer - Joseph Lackey-Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 10235, Washington, DC 20503

SUPPLEMENTARY INFORMATION:

[[Page 17661]]

Final approval under OMB delegated authority the revision, without 
extension, of the following reports:

    Report title: Financial Statements for Bank Holding Companies.
    Agency form numbers: FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9CS, and FR 
Y-9ES.
    OMB control number: 7100-0128.
    Frequency: Quarterly, semiannually, and annually.
    Reporters: Bank holding companies (BHCs).
    Annual reporting hours: 369,113.
    Estimated average hours per response: FR Y-9C: 34.80 hours, FR Y-
9LP: 4.75 hours, FR Y-9SP: 4.09 hours, FR Y-9CS: 30 minutes, FR Y-9ES: 
30 minutes.
    Number of respondents: FR Y-9C: 2,113, FR Y-9LP: 2,455, FR Y-9SP: 
3,312, FR Y-9CS: 600; FR Y-9ES: 92.
    General description of report: This information collection is 
mandatory (12 U.S.C. 1844(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 BHCs that have total assets of $150 
million or more and by lower-tier BHCs 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.
    The FR Y-9LP includes standardized financial statements filed 
quarterly on a parent company only basis from each BHC that files the 
FR Y-9C. In addition, for tiered BHCs, a separate FR Y-9LP must be 
filed for each lower tier BHC.
    The FR Y-9SP is a parent company only financial statement filed 
semiannually 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.
    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.
    The FR Y-9ES is filed annually by BHCs that are Employee Stock 
Ownership Plans (ESOPs).
    Current Actions: 369,113.
    On December 15, 2003, the Federal Reserve issued for public comment 
proposed revisions to bank holding company reports (68 FR 69700). The 
comment period expired on February 13, 2004. The Federal Reserve 
received comment letters from one bank holding company (BHC), one trade 
association and a Federal Reserve district bank. The comments received 
are addressed below.

Voluntary Advance Collection of Summary FR Y-9C Data from the Largest 
BHCs

    The Federal Reserve proposed to incorporate into the FR Y-9C 
information collection the advance collection of key FR Y-9C summary 
items from selected large BHCs. These data would be collected in 
advance of the regular FR Y-9C filing deadline on a voluntary, as-
needed basis to supplement information published in BHC press releases. 
Generally, commenters recognized the need for this data and indicated 
that they could provide the information requested.
    One commenter asked that the Federal Reserve limit any expansion in 
scope of the data collection, and subject any changes in scope to the 
report approval process. The amount of information collected from each 
BHC in any quarter will vary depending on the nature of the items in 
question, their relevance to the BHC, and the basis of presentation 
used in the BHC's press release. Also, the items collected may change 
over time, particularly if the manner in which financial information is 
communicated in press releases begins to diverge more significantly 
from the manner in which data are presented in the FR Y-9C. However, 
the information to be collected is generally available in the BHC's 
management information systems. Accordingly, even with such changes, 
this information collection would not exceed the estimated average 
burden of 30 minutes per respondent without being subject to the report 
approval process (including a formal notice and comment period).
    Another commenter sought confirmation that the timing for the 
collection of this information will not change when the FR Y-9C filing 
deadline is accelerated effective with the June 30, 2004, reporting 
date. The change in filing deadlines will not affect the timing of the 
collection of advance data from the largest BHCs. The commenter also 
sought confirmation that collection of this information would be 
granted permanent confidential treatment. Collection of this 
information will be held as confidential, any change to this treatment 
would be subject to the report approval process (including a formal 
notice and comment period).

Reporting of Trust Preferred Securities

    The Federal Reserve proposed to modify the definition of Schedule 
HC, Balance Sheet, item 20, ``Other liabilities,'' and Schedule HC-G, 
Other Liabilities, item 4, ``Other,'' to include information on trust 
preferred securities. This information would no longer be included in 
Schedule HC, item 22, ``Minority interest in consolidated subsidiaries 
and similar items.'' BHCs were advised that this proposed reporting 
change does not represent any change to the risk-based capital 
treatment for trust preferred securities. Consistent with guidance 
previously provided in Federal Reserve Supervisory Letter SR 03-13 of 
July 2, 2003, BHCs should continue to include eligible trust preferred 
securities in their tier 1 capital for regulatory capital purposes 
until further notice is given to the contrary. The amounts qualifying 
for inclusion in tier 1 capital should be reported in Schedule HC-R, 
Regulatory Capital, item 6, in accordance with the reporting 
instructions. The Federal Reserve will review the regulatory 
implications of any accounting treatment changes and, if necessary or 
warranted, will provide further appropriate guidance.
    One commenter supported this change and further recommended that 
trust preferred securities be reported in a new line item on Schedule 
HC-R, stating that inclusion of a separate line within Schedule HC-R 
will help clarify the capital treatment and overall computation of tier 
1 capital. The Federal Reserve supports this change and will add a new 
item 6.b to Schedule HC-R, ``Qualifying trust preferred securities.'' 
Current Schedule HC-R, item 6, ``Qualifying minority interests in 
consolidated subsidiaries'' will be renumbered as item 6.a. The 
reporting of a separate line item for qualifying trust preferred 
securities on HC-R will clarify that tier 1 capital treatment of these 
securities has not changed at this time even though they have been 
reclassified from minority interest to other liabilities on the balance 
sheet.

[[Page 17662]]

    Another commenter inquired about the reporting impact of Financial 
Accounting Standards Board (FASB) Financial Interpretation No. 46, 
``Consolidation of Variable Interest Entities,'' (FIN 46) issued in 
2003, for the deconsolidation of special purpose entities used to issue 
trust preferred securities. BHCs are encouraged to consult with their 
external auditor on the appropriate application of generally accepted 
accounting principles (GAAP), including FIN 46 and revised FIN 46 (FIN 
46R), on the consolidation or deconsolidation of trusts issuing trust 
preferred stock for financial statements and regulatory reporting. 
Consistent with their GAAP determination and SR 03-13, BHCs that 
deconsolidate such trusts for financial reporting purposes should 
include the full amount of the deeply subordinated note issued to the 
trust in Schedule HC, Balance Sheet, item 20, ``Other liabilities,'' 
and Schedule HC-G, Other Liabilities, item 4, ``Other,'' and the BHCs 
investment in the special purpose subsidiary should be reported in 
Schedule HC, item 8, ``Investments in unconsolidated subsidiaries and 
associated companies.'' The amount of the subordinated note issued to 
the trust, net of the BHC's investment in the special purpose 
subsidiary, is equivalent to the amount of the trust preferred 
securities issued. The net amount (that qualifies for inclusion in tier 
1 capital) should be reported in new item 6.b and in memoranda item 
3.d, ``Other cumulative preferred stock eligible for inclusion in Tier 
1 capital.''

Editing of Data by Respondents

    The Federal Reserve proposed to require data validation checks to 
be performed by respondents in conjunction with the electronic 
submission of the FR Y-9 reports (except for the FR Y-9CS) as a 
condition for the accepted filing of the reports. Implementation of 
this requirement is targeted for the September 30, 2004, reporting date 
for FR Y-9C and FR Y-9LP respondents and for the December 31, 2004, 
reporting date for FR Y-9SP and FR Y-9ES respondents.
    Two commenters expressed concerns that thorough testing be 
conducted sufficiently before the implementation of this requirement. 
The Federal Reserve will conduct thorough testing of the enhanced 
internet submission facility (IESUB), and the enhanced IESUB will be 
available to respondents and software vendors for testing approximately 
three months prior to implementation.
    One commenter sought assurance from the Federal Reserve that BHCs 
will be allowed to use enhanced vendor software to perform quality edit 
checks and transmit edit explanations to the Federal Reserve. The 
Federal Reserve will provide specifications and guidance for creating 
files containing the data and edit explanations that can be uploaded to 
IESUB to any interested BHCs and software vendors. However, the Federal 
Reserve cannot warrant the availability or performance of software 
provided by private corporations. This commenter also sought 
confirmation that explanatory comments that address any quality edit 
exceptions would be granted permanent confidential treatment. 
Collection of this information will be held as confidential. Any change 
to this treatment would be subject to the report approval process 
(including a formal notice and comment period).
    BHCs interested in learning more about IESUB submission options and 
in obtaining updates on data editing enhancements as they become 
available are encouraged to go to the Web site 
www.reportingandreserves.org for additional information.

    Board of Governors of the Federal Reserve System, March 30, 
2004.
Jennifer J. Johnson
Secretary of the Board.
[FR Doc. E4-751 Filed 4-2-04; 8:45 am]
BILLING CODE 6210-01-S