[Federal Register Volume 73, Number 241 (Monday, December 15, 2008)]
[Notices]
[Pages 76027-76031]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-29563]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: Background. On June 15, 1984, the Office of Management and 
Budget (OMB) delegated to the Board of Governors of the Federal Reserve 
System (Board) its approval authority under the Paperwork Reduction Act 
(PRA), as per 5 CFR 1320.16, to approve of and assign OMB control 
numbers to collection of information requests and requirements 
conducted or sponsored by the Board under conditions set forth in 5 CFR 
part 1320 Appendix A.1. Board-approved collections of information are 
incorporated into the official OMB inventory of currently approved 
collections of information. Copies of the Paperwork Reduction Act 
Submission, supporting statements, and approved collection of 
information instruments 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.

Request for Comment on Information Collection Proposal

    The following information collection, which is being handled under 
this delegated authority, has received initial Board approval and is 
hereby published for comment. At the end of the comment period, the 
proposed information collection, along with an analysis of comments and 
recommendations received, will be submitted to the Board for final 
approval under OMB delegated authority. Comments are invited on the 
following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Federal Reserve's functions; including 
whether the information has practical utility;
    b. The accuracy of the Federal Reserve's estimate of the burden of 
the proposed 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; and
    d. Ways to minimize the burden of information collection on 
respondents, including the use of automated collection techniques or 
other forms of information technology.

DATES: Comments must be submitted on or before February 13, 2009.

ADDRESSES: You may submit comments, identified by FR 2644 (OMB No. 
7100-0075) by any of the following methods:
     Agency Web Site: www.federalreserve.gov. Follow the 
instructions for submitting comments at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm. 

[[Page 76028]]

     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments.
     E-mail: [email protected]. Include the OMB 
control number in the subject line of the message.
     FAX: 202-452-3819 or 202-452-3102.
     Mail: Jennifer J. Johnson, Secretary, Board of Governors 
of the Federal Reserve System, 20th Street and Constitution Avenue, 
NW., Washington, DC 20551.
    All public comments are available from the Board's Web site at 
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, 
unless modified 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 (20th and C Streets, NW.) between 9 a.m. 
and 5 p.m. on weekdays.
    Additionally, those providing comments should send a copy by mail 
to the OMB Desk Officer at the Office of Information and Regulatory 
Affairs, U.S. Office of Management and Budget, New Executive Office 
Building, Room 10235, 725 17th Street, NW., Washington, DC 20503 or by 
fax to 202-395-6974.

FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission, 
including the proposed reporting form and instructions, supporting 
statement, and other documents, will be placed into OMB's public docket 
files once approved. These documents will also be made available on the 
Federal Reserve Board's public Web site at: www.federalreserve.gov/boarddocs/reportforms/review.cfm or may be requested from the agency 
clearance officer, whose name appears below.
    Michelle Shore, Federal Reserve Board Clearance Officer (202-452-
3829), Division of Research and Statistics, Board of Governors of the 
Federal Reserve System, Washington, DC 20551. Telecommunications Device 
for the Deaf (TDD) users may contact (202-263-4869), Board of Governors 
of the Federal Reserve System, Washington, DC 20551.
    Proposal to approve under OMB delegated authority the extension for 
three years, with revision, of the following report: 
    Report title: Weekly Report of Selected Assets and Liabilities of 
Domestically Chartered Commercial Banks and U.S. Branches and Agencies 
of Foreign Banks.
    Agency form numbers: FR 2644.
    OMB control number: 7100-0075.
    Frequency: Weekly.
    Reporters: Domestically chartered commercial banks and U.S. 
branches and agencies of foreign banks.
    Annual reporting hours: 120,575 hours.
    Estimated average hours per response: 2.65 hours.
    Number of respondents: 875.
    General description of reports: The FR 2644 is authorized by 
section 2A and 11(a)(2) of the Federal Reserve Act [12 U.S.C. 225(a) 
and 248(a)(2)] and by section 7(c)(2) of the International Banking Act 
[12 U.S.C. 3105(c)(2)] and is voluntary. Individual respondent data are 
regarded as confidential under the Freedom of Information Act [5 U.S.C. 
552(b)(4)].
    Abstract: The Weekly Report of Assets and Liabilities for Large 
U.S. Branches and Agencies of Foreign Banks (FR 2069; OMB No. 7100-
0030), the Weekly Report of Assets and Liabilities for Large Banks (FR 
2416; OMB No. 7100-0075), and the Weekly Report of Selected Assets (FR 
2644; OMB No. 7100-0075) are referred to collectively as the bank 
credit reports. These three voluntary reports have been the primary 
source of high-frequency data used in the analysis of current banking 
developments. The FR 2416 data are used on a stand-alone basis to 
construct the large domestically chartered bank series. The other two 
reports collect sample data that are used to estimate universe levels 
using data from the quarterly commercial bank Consolidated Reports of 
Condition and Income (FFIEC 031 and 041; OMB No. 7100-0036) and the 
Report of Assets and Liabilities of U.S. Branches and Agencies of 
Foreign Banks (FFIEC 002; OMB No. 7100-0032) (Call Reports). Data from 
all three bank credit reports, together with data from other sources, 
are used to construct weekly estimates of bank credit, balance sheet 
data for the U.S. banking industry, sources and uses of banks' funds, 
and to analyze banking developments.
    The Federal Reserve publishes the data in aggregate form in the 
weekly H.8 statistical release, Assets and Liabilities of Commercial 
Banks in the United States, which is followed closely by other 
government agencies, the banking industry, the financial press, and 
other users. This release provides a balance sheet for the banking 
industry as a whole and data disaggregated by its large domestically 
chartered, small domestically chartered, and foreign-related 
components.
    Current actions: The Federal Reserve proposes to combine the three 
bank credit reporting forms into one reporting form, the proposed 
Weekly Report of Selected Assets and Liabilities of Domestically 
Chartered Commercial Banks and U.S. Branches and Agencies of Foreign 
Banks (FR 2644; OMB No. 7100-0075). This report would be collected from 
an authorized stratified sample of 875 domestically chartered 
commercial banks and U.S. branches and agencies of foreign banks. The 
new panel would be significantly smaller than the authorized sample of 
1,220 respondents for the current family of reports. The proposed FR 
2644 report would be filed by each institution selected for the 
reporting panel, regardless of its asset size or charter type, and 
would consist of 34 data items. Improvements to the reporting scheme 
would include increasing flexibility in analyzing weekly reported bank 
balance sheet data, adapting the report to fair value accounting as 
prescribed under the Financial Accounting Standards Board (FASB) 
Statement of Financial Acounting Standards No. 159, The Fair Value 
Option for Financial Assets and Financial Liabilities (FAS 159), 
improving the data detail on securities, and eliminating data items 
that are no longer needed at a weekly frequency. The first report for 
the proposed FR 2644 would be as of July 1, 2009.
    Proposed Discontinuance of the FR 2416 and the FR 2069: The current 
FR 2416 and FR 2069 reporting forms would be discontinued. The current 
reporting panels for these reporting forms would be shifted to the 
proposed FR 2644 reporting panel and notified that either the FR 2416 
or FR 2069 reporting form had been replaced with the proposed FR 2644 
reporting form.
    Proposed Revisions to the FR 2644: The new single reporting form 
would be filed by all selected weekly reporters of bank credit data 
(large domestically chartered commercial banks, small domestically 
chartered commercial banks, and U.S. branches and agencies of foreign 
banks). The Federal Reserve anticipates that having all reporters use 
the same reporting form would remove the report-related constraints 
that make it difficult to analyze bank behavior without significantly 
reducing the accuracy of the resulting bank credit aggregates.
    In addition to combining the reporting panels, the Federal Reserve 
proposes to:
     Adapt this family of reports to fair value accounting by 
asking banks to include loans and securities held in trading accounts 
in the appropriate loan or security component,
     Include data items on securities by issuer and type of 
security instead of by account type (investment account versus trading 
account),

[[Page 76029]]

     Include more detail on mortgage-backed securities (broken 
out by issuer and collected from all banks),
     Include more data item detail for small domestically 
chartered banks and U.S. branches and agencies of foreign banks, and
     Delete 10 data items, on net, currently collected on the 
FR 2416 reporting form that are no longer needed on a weekly basis.
    The proposed FR 2644 reporting form would consist of 34 data items, 
an increase of 13 data items over the current FR 2644 reporting form. 
The 13 additional data items are:
     Cash and balances due from depository institutions,
     Mortgage-backed securities reported by issuer (U.S. 
Treasury and agency and other),
     Federal funds sold and reverse repurchase agreements 
reported by counterparty (commercial banks and others),
     Allowance for loan and lease losses,
     Trading assets,
     Derivatives with a positive fair value,
     All other assets (a residual),
     Total deposits,
     Time deposits of $100,000 or more,
     Trading liabilities,
     Derivatives with a negative fair value,
     All other liabilities (a residual), and
     Net unrealized gains (losses) on available-for-sale 
securities.
    The proposed additions include several data items that are 
currently collected from large domestically chartered banks on the FR 
2416 and from U.S. branches and agencies of foreign banks on the FR 
2069. For the proposed FR 2644, the Federal Reserve revised the 
methodology for determining the estimated average hours per response 
based on the weighted average of data items submitted with values 
greater than zero. Since many smaller current FR 2644 reporters have 
zero balances on their Call Reports for some of the proposed items, 
these reporters would not be expected to incur large increases in 
reporting burden under this proposal.
    The following is a discussion of each data item that would be 
collected on the proposed FR 2644 reporting form.
    1. Cash and balances due from depository institutions. The proposed 
FR 2644 reporting form would include a new data item, Cash and balances 
due from depository institutions, because these data would provide a 
useful measure of banks' liquidity positions. This data item is 
included on the current FR 2416 and FR 2069 reporting forms.
    2. Securities (including securities reported as trading assets on 
the Call Report). As on the current FR 2644 reporting form, the 
securities data on the proposed FR 2644 reporting form would include 
securities held for both investment and trading purposes. Domestically 
chartered banks that do not report data on Call Report Schedule RC-D 
would continue to omit trading assets from the securities items on the 
proposed FR 2644 reporting form. These reporters would include all 
trading assets in new data item 5, Trading assets, other than loans and 
securities included above. In addition, the securities data items on 
the proposed reporting form would continue to be broken down by type of 
issuer, i.e., U.S. Treasury securities and U.S. Government agency 
obligations and Other securities. However, within-issuer, data would be 
further subdivided by type of security, i.e., Mortgage-backed 
securities and Other.
    The increased detail on mortgage-backed securities is needed in 
order to better analyze banks' investment strategies and their exposure 
to mortgage-backed securities. Both the FR 2416 and FR 2644 reporting 
forms collect data on mortgage-backed securities in investment accounts 
only. The FR 2416 reporting form includes these data items broken out 
by Pass-through securities and Collateralized Mortgage Obligations and 
Real Estate Mortgage Investment Conduits. The FR 2069 reporting form 
does not collect any data on mortgage-backed securities. Under the 
proposed single reporting form, data on all mortgage-backed securities 
(whether held in investment or trading accounts) would be collected 
from all institutions.
    The Federal Reserve proposes to continue collecting the securities 
items inclusive of securities held as trading assets and to implement 
the proper classification of other trading assets in order to 
accurately measure bank credit. Currently, FR 2416 and FR 2069 
respondents report all trading assets, including loans and other non-
security items held as trading assets, in data item 2, Trading assets, 
and FR 2644 respondents report trading assets in either data item 1, 
U.S. Treasury securities and U.S. Government agency obligations, data 
item 2, Other securities, or data item 5, Total assets. On the proposed 
FR 2644 reporting form, trading assets would be reported in the 
appropriate security or loan component (data item 2 or 4, respectively) 
or be included in data item 5, Trading assets, other than securities 
and loans included above.
    3. Federal funds sold and securities purchased under agreements to 
resell. The proposed FR 2644 reporting form would break out this data 
item by counterparty, i.e., With commercial banks in the U.S. 
(including U.S. branches and agencies of foreign banks) and With others 
(including nonbank brokers and dealers in securities and Federal Home 
Loan Bank). The detail is needed to construct bank credit, which 
excludes federal funds sold to and reverse repurchase agreements with 
banks. The FR 2416 and FR 2069 reporting forms include this detail and 
also include Federal funds sold and securities purchased under 
agreements to resell with nonbank brokers and dealers in securities.
    4. Loans and leases (including loans reported as trading assets on 
the Call Report). The proposed FR 2644 reporting form would include the 
components of core loans (real estate, commercial and industrial, and 
consumer loans) at the existing level of detail, but each component 
would be redefined to include loans held for trading purposes. Core 
loans form the bulk of bank credit and are studied closely by the 
Federal Reserve.
    The proposed FR 2644 reporting form would redefine each loan item 
to include loans measured at fair value and reported as trading assets 
on Call Report Schedule RC-D (for domestically chartered banks) or on 
Schedule RAL (for U.S. branches and agencies of foreign banks). This 
inclusion should not prove burdensome for most banks since most do not 
book loans in their trading accounts. Nonetheless, some large banks 
have taken up this practice, so including loans held as trading assets 
in the loan items is necessary to accurately measure bank credit. If a 
domestically chartered bank does not report data on Schedule RC-D of 
the Call Report but holds loans as trading assets, it would include 
those loans in data item 5, Trading assets, other than securities and 
loans included above.
    The data item 4.b, Loans to, and acceptances of, commercial banks 
in the U.S. (including U.S. branches and agencies of foreign banks) 
would continue to be included as a separate data item, since interbank 
loans are excluded from bank credit. Data item 4.e, All other loans and 
leases, would be included to construct total loans and leases. The FR 
2416 and FR 2069 include the data item, Loans for purchasing or 
carrying securities. The FR 2416 includes the data item, Lease 
financing receivables (net of unearned income). The proposed FR 2644 
report would include these data items in All other loans and leases.

[[Page 76030]]

    The proposed FR 2644 would define all loan components net of 
unearned income. The FR 2416 reporting form includes the data item 
Unearned income, if any, included in items (above). Under the proposed 
FR 2644 reporting form, this data item would not be reported 
separately, since all loan items would be reported net of unearned 
income.
    The proposed FR 2644 would include new data item 4.f, Allowance for 
loan and lease losses. The FR 2416 reporting form includes this data 
item; however, the FR 2069 reporting form does not. This data item has 
grown dramatically over the past year, reflecting losses in the 
troubled credit markets, and is needed to aid the Federal Reserve in 
monitoring the health of banks' loan portfolios.
    5. Trading assets, other than securities and loans included above. 
The proposed FR 2644 reporting form would include two new data items: 
Trading assets, other than securities and loans included above (which 
includes derivatives, gold bullion, and other trading assets) and its 
subcomponent, data item 5.a, Derivatives with a positive fair value 
(included in item 5 above). The FR 2416 and FR 2069 include the 
identical data item, Derivatives with a positive fair value held for 
trading purposes. Domestically chartered commercial banks that do not 
report on Schedule RC-D of the Call Report would report total trading 
assets in data item 5, Trading assets, other than securities and loans 
included above, and would not report any balances in data item 5.a. 
These data items are needed to monitor trading assets and to better 
understand how interest rates and market valuations affect the fair 
value of derivatives.
    6. Other assets. Net due from related foreign offices (if FFIEC 002 
respondent, include head office and other related depository 
institutions in the U.S.) would be reported on the proposed FR 2644 
because it is used in the construction of managed liabilities, an 
aggregate that is tracked by the Federal Reserve in order to understand 
the composition of banks' marginal funding sources over time. The FR 
2416 and FR 2644 include this data item as Net due from own foreign 
offices, Edge and agreement subsidiaries, and IBFs. The FR 2069 
includes this data item as Net due from head office and other related 
depository institutions in the U.S. and in foreign countries. The new 
data item 6.b, All other assets, is needed to complete the asset side 
of the balance sheet, thereby avoiding measurement problems inherent in 
collecting a partial balance sheet. All other assets includes premises 
and fixed assets, other real estate owned, investments in 
unconsolidated subsidiaries and associated companies, intangible assets 
(including goodwill), derivatives with a positive fair value held for 
purposes other than trading, and all remaining assets.
    7. Total assets. This data item is reported net of any allowance 
for loan and lease losses. It equals the sum of data items 1 through 
4.e, 5, 6.a, and 6.b minus data item 4.f. To avoid double counting, 
data item 5.a, Derivatives with a positive fair value (included in item 
5 above), is ignored when constructing total assets.
    8. Total deposits. The proposed FR 2644 would include the new data 
item 8, Total deposits, because it is a major component of the 
liabilities side of the balance sheet. The FR 2416 includes the data 
items Transaction accounts and Nontransaction accounts. The FR 2069 
includes the data items Transaction accounts and credit balances and 
Nontransaction accounts. The proposed FR 2644 would also include data 
item 8.a, Time deposits of $100,000 or more (included in item 8 above), 
because it is an important component of managed liabilities. The 
Federal Reserve may adjust the cutoff for large time deposits if and 
when the definition of large time deposits changes on the Call Reports.
    9. Borrowings. The proposed FR 2644 would include borrowings by 
counterparty, i.e., From commercial banks in the U.S. (including U.S. 
branches and agencies of foreign banks) and From others (including FRB 
and FHLB). These borrowings items are included on the current FR 2416, 
FR 2644, and FR 2069 reporting forms and are needed in order to 
construct managed liabilities.
    10. Trading liabilities. The proposed FR 2644 would include two new 
data items: Trading liabilities and its subcomponent, data item 10.a, 
Derivatives with a negative fair value. The FR 2416 and FR 2069 include 
the identical data items. Domestically chartered commercial banks that 
do not report on Schedule RC-D of the Call Report would report total 
trading liabilities in data item 10, Trading liabilities, and would not 
report any balances in data item 10.a. These data items are needed to 
construct banks' liability for short positions, which is a component of 
managed liabilities.
    11. Other liabilities. Net due to related foreign offices (if FFIEC 
002 respondent, include head office and other related depository 
institutions in the U.S.) would be included on the proposed FR 2644 
because it is used to construct managed liabilities. The FR 2416 and FR 
2644 include this data item as Net due to own foreign offices, Edge and 
agreement subsidiaries, and IBFs. The FR 2069 reporting form includes 
this data item as Net due to head office and other related depository 
institutions in the U.S. and in foreign countries. The new data item, 
All other liabilities (including subordinated notes and debentures), is 
needed to complete the liabilities side of the balance sheet, thereby 
avoiding measurement problems inherent in collecting a partial balance 
sheet. In addition to subordinated notes and debentures, All other 
liabilities includes net deferred tax liabilities, interest and other 
expenses accrued and unpaid, and derivatives with a negative fair value 
held for purposes other than trading.
    12. Total liabilities. This data item is the sum of data items 8, 
9.a, 9.b, 10, 11.a, and 11.b (that is, the sum of data items 8 through 
11 excluding items 8.a and 10.a, to avoid double counting).
    M.1. Net unrealized gains (losses) on available-for-sale 
securities. The proposed FR 2644 would include this new data item to 
better understand how interest rates and market valuations affect the 
fair value of available-for-sale securities. The FR 2416 includes this 
data item while the FR 2069 reporting form does not.
    M.2. Outstanding principal balance of assets sold and securitized 
by the reporting bank with servicing retained or with recourse or other 
seller-provided credit enhancements. The proposed FR 2644 would collect 
data for memorandum item M.2.a, Real estate loans, memorandum item 
M.2.b, Credit card receivables and other revolving credit plans, and 
memorandum item M.2.c, Other consumer loans. These data items are 
currently included on the FR 2416 and FR 2644. The data items, Credit 
cards and related plans and Other consumer loans, were added to the FR 
2416 and FR 2644 in June 2000 to replace items previously included on 
the (discontinued) monthly Commercial Bank Survey of Consumer Credit 
(FR 2571; OMB No. 7100-0080). These data items are published on the 
monthly G.19 release, Consumer Credit. The data item Real estate loans 
was added to the FR 2416 and FR 2644 reporting forms in July 2007 to 
improve the Federal Reserve's understanding of residential real estate 
loan originations. These data items are needed to aid the Federal 
Reserve's interpretation of credit flows even though they are reported 
by relatively few institutions.
    Instructions: The instructions would be revised and clarified in 
accordance with changes made to the FR 2644 reporting form.

[[Page 76031]]

    Proposal To Approve Under OMB Delegated Authority the 
Discontinuance of the Following Reports:
    Report title: The Weekly Report of Assets and Liabilities for Large 
U.S. Branches and Agencies of Foreign Banks; the Weekly Report of 
Assets and Liabilities for Large Banks.
    Agency Form Numbers: FR 2069; FR 2416.
    OMB Control Number: 7100-0030; 7100-0075.
    Frequency: Weekly.
    Reporters: U.S. branches and agencies of foreign banks; 
Domestically chartered commercial banks.
    Annual Reporting Hours: 14,560 hours; 22,386 hours.
    Estimated Average Hours per Response: 4.00 hours; 8.61 hours.
    Number of Respondents: 70; 50.
    Current actions: If the proposal to revise the FR 2644 is approved, 
then the current FR 2416 and FR 2069 reporting forms would be 
discontinued. The current reporting panels for these reporting forms 
would be shifted to the proposed FR 2644 reporting panel and notified 
that either the FR 2416 or FR 2069 reporting form had been replaced 
with the proposed FR 2644 reporting form.

    Board of Governors of the Federal Reserve System, December 10, 
2008.
Jennifer J. Johnson,
Secretary of the Board.
 [FR Doc. E8-29563 Filed 12-12-08; 8:45 am]
BILLING CODE 6210-01-P