[Federal Register Volume 79, Number 185 (Wednesday, September 24, 2014)]
[Notices]
[Pages 57101-57107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22687]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: 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), 
pursuant to 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.

DATES: Comments must be submitted on or before November 24, 2014.

ADDRESSES: You may submit comments, identified by FR 2004, FR 2320, FR 
2644, FR H-6, FR K-1, FR K-2, FR Y-3, FR Y-3N, FR Y-4, or FR Y-3F by 
any of the following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at

[[Page 57102]]

http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include OMB 
number in the subject line of the message.
     FAX: (202) 452-3819 or (202) 452-3102.
     Mail: Robert deV. Frierson, 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 
http://www.federalreserve.gov/apps/foia/proposedregs.aspx 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 form in Room MP-
500 of the Board's Martin Building (20th and C Streets NW) between 9:00 
a.m. and 5:00 p.m. on weekdays.
    Additionally, commenters may send a copy of their comments to the 
OMB Desk Officer -- Shagufta Ahmed -- Office of Information and 
Regulatory Affairs, 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 documentation 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: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears below.
    Federal Reserve Board Acting Clearance Officer--John Schmidt--
Office of the Chief Data Officer, Board of Governors of the Federal 
Reserve System, Washington, DC 20551 202-452-3829. Telecommunications 
Device for the Deaf (TDD) users may contact 202-263-4869, Board of 
Governors of the Federal Reserve System, Washington, DC 20551.

SUPPLEMENTARY INFORMATION:

Request for Comment on Information Collection Proposals

    The following information collections, which are being handled 
under this delegated authority, have received initial Board approval 
and are hereby published for comment. At the end of the comment period, 
the proposed information collections, 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;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.
    Proposals to approve under OMB delegated authority the extension 
for three years, with revision, of the following reports:
    1. Report title: The Government Securities Dealers Reports: Weekly 
Report of Dealer Positions (FR 2004A), Weekly Report of Cumulative 
Dealer Transactions (FR 2004B), Weekly Report of Dealer Financing and 
Fails (FR 2004C), Weekly Report of Specific Issues (FR 2004SI), Daily 
Report of Specific Issues (FR 2004SD), Supplement to the Daily Report 
of Specific Issues (FR 2004SD ad hoc), and Daily Report of Dealer 
Activity in Treasury Financing (FR 2004WI), Settlement Cycle Report of 
Dealer Fails and Transaction Volumes Class A (FR 2004FA), Settlement 
Cycle Report of Dealer Fails and Transaction Volumes Class B (FR 
2004FB), Settlement Cycle Report of Dealer Fails and Transaction 
Volumes Class C (FR 2004FC), Settlement Cycle Report of Dealer Fails 
and Transaction Volumes Class A, B, and C (FR 2004FM).
    Agency form number: FR 2004.
    OMB control number: 7100-0003.
    Frequency: Weekly, daily, monthly.
    Reporters: Dealers in the U.S. government securities market.
    Estimated annual reporting hours: FR 2004A, 3,432 hours; FR 2004B, 
4,233 hours; FR 2004C, 3,546 hours; FR 2004SI, 2,517 hours; FR 2004SD, 
1,210 hours; FR 2004SD ad hoc, 528 hours; FR 2004WI, 3,520 hours; FR 
2004FA, 264 hours; FR 2004FB, 264 hours; FR 2004FC, 264 hours; FR 
2004FM, 396 hours.
    Estimated average hours per response: FR 2004A, 3.0 hours; FR 
2004B, 3.7 hours; FR 2004C, 3.1 hours; FR 2004SI, 2.2 hours; FR 2004SD, 
2.2 hours; FR 2004SD ad hoc, 2.0 hours; FR 2004WI, 1.0 hour; FR 2004FA, 
1.0 hour; FR 2004FB, 1.0 hour; FR 2004FC, 1.0 hour; FR 2004FM, 1.5 
hours.
    Number of respondents: 22.
    General description of report: This information collection is 
authorized by sections 2A, 12A(c), 14, and 15 of the Federal Reserve 
Act (12 U.S.C. 225a, 263c, 353-359, and 391) and is required to obtain 
or retain the benefit of dealer status. Individual respondent data are 
regarded as confidential under the Freedom of Information Act (5 U.S.C. 
552(b)(4) and (b)(8)).
    Abstract: The FR 2004A collects weekly data on dealers' outright 
positions in Treasury and other marketable debt securities. The FR 
2004B collects cumulative weekly data on the volume of transactions 
made by dealers in the same instruments for which positions are 
reported on the FR 2004A. The FR 2004C collects weekly data on the 
amounts of dealer financing and fails. The FR 2004SI collects weekly 
data on position, transaction, financing, and fails for the most 
recently issued on-the-run Treasury securities (the most recently 
issued Treasury securities for each maturity class). When unusual 
trading practices occur for a specific security, this information can 
be collected on a daily basis on the FR 2004SD for either on-the-run 
Treasury securities or off-the-run Treasury securities. The FR 2004SD 
ad hoc collects up to 10 ad hoc data items for instances when critical 
information for additional Treasury market surveillance is required. 
The FR 2004WI collects daily data on positions in to-be-issued Treasury 
coupon securities, mainly the trading on a when-issued delivery basis.
    Current Actions: The Federal Reserve proposes to revise the FR 2004 
effective for the January 7, 2015, as of date. Provided below is a list 
of the proposed revisions to each reporting form followed by a more 
detailed discussion of the justification for each of the proposed 
revisions.

FR 2004A and B

    1. Collect data on gross positions for floating rate Treasury 
securities.
    2. Expand reporting of corporate securities data with additional 
maturity groupings for both investment grade and below investment grade 
debt securities.

[[Page 57103]]

    3. Expand reporting of state and municipal government obligations 
data with additional maturity groupings.

FR 2004C

    Add a separate row in the securities financing section of the 
report form to cover financing activity for asset-backed securities 
(ABS) collateral.

FR 2004SI, SD, and WI

    Collect data on gross positions for floating rate Treasury 
securities.

Treasury Floating Rate Notes (FRNs)

    Collecting data on gross positions for nominal Treasury securities 
on the FR 2004A and B is proposed to capture position and transaction 
data on the newly-issued floating rate Treasury notes. The FR 2004SI, 
SD, and WI would be modified to capture data on new issue and on-the-
run floating rate Treasury notes. Separately capturing and 
disseminating these data would help promote transparency in this 
market. In an effort to minimize burden, all Treasury FRN activity, 
regardless of maturity, would be combined and reported on a single line 
on the FR 2004A, B, SI, SD, and WI.

Additional Maturity Information on Corporate and State and Local 
Government Obligations

    Expanding the maturity categories on the FR 2004A and B for both 
investment grade and non-investment grade corporate bonds as well as 
for state and local government obligations is proposed to assist market 
participants and other data users in better understanding the shifts in 
holdings and transaction volumes across the investment-grade, high-
yield, and municipal credit markets, as well as the inter-market 
dynamics between these asset classes.

Asset-Backed Securities in the Securities Financing Section

    A small expansion of securities financing data through the 
broadening of collateral asset classes to include asset-backed 
securities (previously reported under the classification ``other'') is 
proposed on the FR 2004C. The changes in financing reporting, when used 
in conjunction with existing tri-party and general collateral financing 
(GCF) repurchase agreement data, would allow for a clearer 
understanding of activity in the repurchase agreement markets and how 
holding of these securities are financed by dealers.

Proposed FR 2004FA, FB, FC, and FM

Proposed Monthly Reporting Forms on Mortgage-Backed Securities (MBS) 
Settlement Fails

    The Federal Reserve proposes to add four new reporting forms to the 
FR 2004 series (FR 2004FA, FR 2004FB, FR 2004FC, and FR 2004FM) to 
collect detailed data on settlement fails to receive and fails to 
deliver as well as accumulated outright transaction and dollar roll 
volume in the Federal Agency and government sponsored enterprise (GSE) 
MBS to-be-announced (TBA) markets. Three of these new reporting forms 
would focus specifically on outstanding settlement fails monthly on the 
specific class settlement date across the full coupon stack for each of 
the respective TBA and pool settlement classes as follows:
    (1) FR 2004FA--Class A, 30-year Federal National Mortgage 
Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) 
MBS TBA for coupons:

    [cir] <2.5%
    [cir] 2.5%
    [cir] 3.0%
    [cir] 3.5%
    [cir] 4.0%
    [cir] 4.5%
    [cir] 5.0%
    [cir] 5.5%
    [cir] 6.0%
    [cir] >6.0%

    (2) FR 2004FB--Class B, 15-year FNMA and FHLMC MBS TBA for coupons:

    [cir] <2.0%
    [cir] 2.0%
    [cir] 2.5%
    [cir] 3.0%
    [cir] 3.5%
    [cir] 4.0%
    [cir] 4.5%
    [cir] 5.0%
    [cir] 5.5%
    [cir] >5.5%

    (3) FR 2004FC--Class C, 30-year Government National Mortgage 
Association (GNMA) for coupons:

    [cir] <2.5%
    [cir] 2.5%
    [cir] 3.0%
    [cir] 3.5%
    [cir] 4.0%
    [cir] 4.5%
    [cir] 5.0%
    [cir] 5.5%
    [cir] 6.0%
    [cir] >6.0%

    The FR 2004FM would collect as of the last business day of each 
month detailed data on outstanding settlement fails across the full 
coupon stack for all three of the respective TBA settlement classes for 
that month's settlement cycle.
    All four proposed forms would also collect total accumulated 
outright TBA and specified pool transaction and dollar roll volumes 
separately for each of the same MBS TBA and specified pool securities 
and across all respective coupon rates covered in the settlement fails 
section of the forms.

 Class A--30-year FNMA and 30-year FHLMC
 Class B--15-year FNMA and 15-year FHLMC
 Class C--30-year GNMA

    Given the unique forward trading and settlement characteristics of 
the MBS TBA markets, settlement fails would continue to be a focus of 
concern for market participants, as a high level of settlement fails 
can lead to increases in operational costs due to financing and 
settlement fail charges, as well as raise counterparty credit risk. It 
also absorbs capital through regulatory charges, leads to overall 
market inefficiencies, and increases overall systemic risk.
    The collection and public dissemination of detailed data on 
settlement fails for specific Federal agency and GSE MBS benchmark 
securities would promote increased transparency to the public by 
providing sufficient granularity to identify those securities 
contributing most significantly to elevated or persistent levels of 
settlement fails. Collecting outstanding fails data at two separate 
dates each month offers several benefits including an ability to 
distinguish between fails due to operational issues such as 
miscommunication of pool terms, pool substitutions, and daisy chain 
fails due to pool sorting delays, from more persistent fails still 
outstanding at month end and unlikely to be settled until the next 
monthly class settlement date. Persistent fails are often the result of 
insufficient incentives for a dealer that is short securities to borrow 
the securities required to satisfy its obligations. Prior episodes of 
higher and protracted settlement fails seem to be closely related to 
low interest rate environments. These new data would allow market 
participants and the broader public to more precisely monitor the 
settlement dynamics of this important market, allowing for a broader 
understanding of market functioning and trading conditions, and more 
generally, about the formulation and implementation of monetary policy. 
It would also provide information on the critical role of primary 
dealers in intermediating dollar roll transactions and agency MBS 
financing to market

[[Page 57104]]

participants. The expansion of collected data would allow for a greater 
understanding of critical markets that directly affect the System Open 
Market Account, where agency MBS holdings currently account for over 
40% of total securities holdings.

Publication of Aggregate Data

    Publication of aggregate data of all new data items from the FR 
2004A, B, C, and SI is proposed. The expansion of published aggregate 
statistics would improve market transparency across the affected 
markets. Publication of summary aggregate statistics on MBS TBA 
settlement fails from the FR 2004FA, FB, FC, and FM is also proposed 
with the format still to be determined.

Clarifications to the Instructions

    The instructions for all report series would be revised to (1) 
cover all new proposed data items and maturity groupings, (2) to 
indicate the reporting rules for Treasury FRNs on the FR 2004C report 
and (3) cover the reporting rules and deadlines for the new monthly 
report forms on MBS TBA settlement fails and transaction volumes.
    2. 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 number: FR 2644.
    OMB control number: 7100-0075.
    Frequency: Weekly.
    Reporters: Domestically chartered commercial banks and U.S. 
branches and agencies of foreign banks.
    Estimated annual reporting hours: 127,400 hours.
    Estimated average hours per response: 2.80 hours.
    Number of respondents: 875.
    General description of report: 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 FR 2644 is the only source of high-frequency data 
used in the analysis of current banking developments. The FR 2644 
collects 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 
the FR 2644, 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 and monetary developments.
    Current Actions: The Federal Reserve proposes to subdivide several 
loan categories and add two new memoranda items. The Federal Reserve 
also recommends deleting several data items that are no longer useful 
or only have material amounts at a few banks. The item count for the 
revised FR 2644 reporting form would be 33 balance-sheet items and four 
memoranda items, an overall increase of three data items. The Federal 
Reserve proposes to revise the FR 2644 effective for the January 7, 
2015, as of date.

Split Data Item 4.a(2) Into Four Data Items

    The Federal Reserve proposes to split current data item 4.a(2), 
commercial real estate loans, into four data items and renumber current 
data items 4.a(1) and 4.a(3) as follows:
    4.a(1) Construction, land development and other land loans,
    4.a(2) Secured by farmland,
    4.a(3)(a) Revolving, open-end loans secured by 1-4 residential 
properties and extended under lines of credit,
    4.a(3)(b) Closed-end loans secured by 1-4 family residential 
properties,
    4.a(4) Secured by multifamily (5 or more) residential properties, 
and
    4.a(5) Secured by nonfarm nonresidential properties.
    Commercial real estate loans have been collected from the largest 
banks since 1996 and from smaller institutions starting in 2004. While 
the total amount of commercial real estate loans (CRE) loans has been 
useful, experience during the financial crisis indicated that more 
timely information on the subcomponents of CRE loans is necessary. 
According to the H.8 data, CRE loans declined about $360 billion 
between early 2009 and mid-2012. Such loans started to recover during 
the second half of 2012; however not all CRE loan segments were 
improving at the same pace, as Call Report data later revealed. 
Specifically, construction and land development loans, generally 
considered to be the riskiest type of CRE loans, began declining a year 
earlier relative to other types of CRE loans and growth in this sector 
also picked up a year later. More timely data in these subcategories of 
CRE loans would help the Federal Reserve to closely monitor changes in 
CRE loans trends more quickly.

Split Data Item 4.d(2) Into Two Data Items

    The Federal Reserve proposes to split item 4.d(2), other consumer 
loans, into the following data items:
    4.d(2) Automobile loans and
    4.d(3) Other consumer loans.
    Automobile loans were added to the domestic Call Reports in March 
2011 as a component of other consumer loans. According to Call Report 
data, automobile loans have accounted for over 60 percent of the other 
consumer loans category, with the remainder comprised of student loans 
and other loans for personal expenditures. Isolating automobile loans 
would help the Federal Reserve ascertain movements in consumer loans 
other than credit cards and would provide more timely information on 
the availability of credit in the automobile loan market.

Subdivide Data Item 4.e Into Two Data Items

    The Federal Reserve proposes dividing data item 4.e, all other 
loans and leases, into the following two data items:
    4.e Loans to nondepository financial institutions and
    4.f All other loans and leases.
    Current data item 4.f, allowance for loan and lease losses, would 
be renumbered as data item 4.g.
    Loans to nondepository financial institutions were added to the 
domestic Call Reports in March 2010 in response to an increase in the 
number of transactions between banks and nonbank financial 
institutions. Although loans to nondepository financial institutions 
are only a small part of total loans--about 3.5 percent as of the 
fourth quarter of 2013--its share has been steadily increasing since 
2010 and is the fastest-growing component of other loans. Specifically, 
according to the Call Reports, loans to nondepository financial 
institutions at commercial banks increased at an annual rate of 12 and 
24 percent in 2012 and 2013, respectively. Collecting this subcomponent 
of all other loans would provide a measure of the degree of 
interconnectedness between banks and nonbanks and how it evolves over 
time. Banks' exposures to counterparties with whom they borrow and lend 
funds are potential conduits for the transmission of the effects 
resulting from nonbanks' financial distress or activities. Thus, this 
data item would be useful for the Financial Stability Oversight Council 
as well, as this group would be monitoring on an on-going basis the 
interconnectedness within the financial system.

[[Page 57105]]

Create a Component of Current Memorandum Item M.1

    The Federal Reserve proposes to add a subcomponent of memorandum 
item M.1, net unrealized gains (losses) on available-for-sale 
securities:
    M.1 Net unrealized gains (losses) on available-for-sale securities;
    M.1.a Net unrealized gains (losses) on available-for-sale U.S. 
Treasury securities and U.S. government agency obligations, mortgage-
backed securities (included in item 2.a(1) and memoranda item 1 above).
    Banks are instructed to report their held-to-maturity securities at 
amortized cost and their available-for-sale securities at fair value on 
the FR 2644 reporting form. Item M.1, net unrealized gains (losses) on 
available-for-sale securities, had been added to the FR 2416 reporting 
form as of October 2, 1996 and was retained on the single reporting 
form in July 2009. This data item allows the Federal Reserve to 
estimate the book value of banks' securities. Since the FR 2644 
collects four categories of securities, internal estimates of growth in 
securities subcomponents allocate the unrealized gains (losses) 
adjustment only to the largest subcomponent of securities, namely item 
2.a(1), U.S. Treasury and U.S. government agency securities, mortgage-
backed securities. This approach worked fairly well as a way of 
estimating the book value of banks' securities before the last 
financial crisis, because up to that point the swings in fair value 
largely reflected interest rate changes that moved the value of all 
securities in the same direction. During the financial crisis period, 
some of the large changes in unrealized gains (losses) on available-
for-sale securities were attributable to credit impairment rather than 
interest rate changes and observed in the subcomponents of other 
securities, ``mortgage-backed securities (MBS) and non-MBS.'' While 
efforts have been made to allocate the net unrealized gains (losses) 
across the four categories of securities collected, no entirely 
satisfactory method for the allocation of net unrealized gains (losses) 
across all types of securities currently exists. The addition of the 
unrealized gains (losses) on U.S. Treasury and agency securities, MBS 
on the revised FR 2644 form would improve the allocation of net gains 
(losses) on available-for-sale securities across the remaining three 
securities' categories, because changes in those categories are almost 
always related solely to interest rate changes.

Create New Memorandum Item M.2

    The Federal Reserve proposes to collect subcomponents of data items 
4.a(5), CRE loans secured by nonfarm nonresidential properties, and 
4.c, commercial and industrial loans:
    M.2.a Commercial real estate loans secured by nonfarm 
nonresidential properties with original amounts of $1,000,000 or less 
(included in data item 4.a(5)) and
    M.2.b Commercial and industrial loans to U.S. addressees with 
original amounts of $1,000,000 or less (included in data item 4.c 
above).
    There are no timely sources of information for loans made to small 
businesses. Small business lending (CRE loans secured by nonfarm 
nonresidential properties and commercial and industrial loans to U.S. 
addressees with original amounts of $1,000,000 or less) accounted for 
approximately 8 percent of total loans as of December 2013. There has 
been an increasing interest in the health of small business lending and 
the weekly collection of this data would help the Federal Reserve more 
closely monitor developments in this sector.

Proposed Elimination of Data Items

    The Federal Reserve recommends deleting the following data items 
from the FR 2644 report:
    5.a Derivatives with a positive fair value and
    10.a Derivatives with a negative fair value.
    In addition, the Federal Reserve proposes to stop collecting the 
following three memoranda items:
    Outstanding principle balance of assets sold and securitized by the 
reporting bank with servicing retained or with recourse or other 
seller-provided credit enhancements:
    M.2.a Real estate loans,
    M.2.b Credit card loans and other revolving credit plans, and
    M.2.c Other consumer loans.
    Data item 5.a, derivatives with a positive fair value, is a 
subcomponent of item 5, trading assets. In addition to derivatives, 
trading assets include other, non-security items such as certificates 
of deposit held for trading and gold bullion and silver. However, 
derivatives with a positive fair value account for 90 percent of total 
trading assets for domestically chartered commercial banks and 95 
percent for foreign-related institutions. Total trading assets can be 
safely used as a proxy for derivatives, as the preponderance of the 
movement in this item can be attributed to derivatives. Therefore, the 
Federal Reserve recommends deleting this data item from the FR 2644 
report.
    Data item 10.a, derivatives with a negative fair value, is a 
subcomponent of item 10, trading liabilities. Similar to item 5.a 
above, these derivatives account for a high percentage of trading 
liabilities: 70 percent for domestically chartered banks and 88 percent 
for foreign-related institutions. Since item 10.a. comprises such a 
large portion of the total, weekly changes are typically driven by 
changes in derivatives with a negative fair value. Therefore, the 
Federal Reserve recommends deleting this data item from the FR 2644 
report.
    Memorandum item 2.a, outstanding principle balance of assets sold 
and securitized by the reporting bank with servicing retained or with 
recourse or other seller-provided credit enhancements: real estate 
loans, was added on July 4, 2007, in an attempt to capture mortgage 
loans sold and securitized with servicing retained by weekly reporters. 
However, there have been several factors leading to a substantial 
decline in this item:
    (1) Based on the Call Report instructions, sales to the government 
sponsored entities (GSEs) are not included in this item, even if the 
GSEs later securitize the loans. This peculiarity in the instructions 
understates the actual amount of real estate loans that have been sold 
and securitized.
    (2) Upcoming changes to the regulatory capital treatment of 
mortgage servicing rights (MSRs) under Basel III have encouraged banks 
to sell their MSRs to nonbanks. The sale of the MSRs reduces 
securitized real estate loans since it voids the link that banks have 
to their off-balance sheet real estate loans. Thus, the off-balance-
sheet loans have been declining in volume.
    (3) Due to the virtually complete shutdown of private mortgage 
securitization markets, banks have been selling their newly originated 
loans only to the GSEs, leading to a run-off in the off-balance sheet 
loans through pay downs and maturities.
    Securitized real estate loans were about $1.46 trillion at the time 
of the single report form, with 93 banks on the December 2009 Call 
Report submitting nonzero values for this item. As of the first quarter 
of 2014, data corrections, sales of MSRs, and pay downs have all 
lowered the level of securitized real estate loans more than one-half, 
to about $663 billion. Moreover, only 53 banks reported positive values 
for this line item at the end of the last quarter. In addition, the 
holdings of securitized real estate loans are heavily concentrated in a 
few banks which update their outstanding securitized amounts quarterly 
based on their Call Reports.

[[Page 57106]]

Therefore, a quarterly frequency for this much smaller amount of 
lending activity is now appropriate. Therefore, the Federal Reserve 
recommends deleting this data item from the FR 2644 report.
    Memoranda items 2.b and 2.c, which correspond to outstanding 
principle balance of assets sold and securitized by the reporting bank 
with servicing retained or with recourse or other seller-provided 
credit enhancements: credit cards and other revolving credit plans and 
other consumer loans, respectively, were greatly affected by banks' 
implementation of Financial Accounting Standards (FAS) 166/167. Under 
these new accounting rules, banks brought most of their off-balance 
sheet consumer loans onto their books. In 2009, 20 banks with off-
balance sheet credit card balances and 14 with off-balance sheet other 
consumer loans were reporting this item. As of March 2014, just four 
banks were reporting off-balance sheet credit card balances and ten 
banks holding off-balance sheet exposures for other consumer loans. In 
addition, these data are available from the Call Reports and a 
quarterly frequency for this much smaller amount of lending activity is 
now appropriate. Therefore, the Federal Reserve recommends deleting 
these data items from the FR 2644 report.
    Proposal to approve under OMB delegated authority the extension for 
three years, without revision, of the following reports:
    1. Report title: Quarterly Savings and Loan Holding Company Report.
    Agency form number: FR 2320.
    OMB control number: 7100-0345.
    Frequency: Quarterly.
    Reporters: Top and lower-tier savings and loan holding companies 
(SLHCs).
    Estimated annual reporting hours: 180 hours.
    Estimated average hours per response: 2.5 hours.
    Number of respondents: 18.
    General description of report: This information collection is 
mandatory pursuant to section 10 of the Home Owners' Loan Act (HOLA), 
(12 U.S.C. 1467a(b)(2)) as amended by Public Law 111-201, Sec.  369(8). 
Data items C572, C573, and C574 on Schedule H may be protected from 
disclosure under exemption 4 of the Freedom of Information Act (FOIA) 
(5 U.S.C. 552(b)(4)). With regard to the remaining data items on 
Schedule HC, the Federal Reserve has determined that institutions may 
request confidential treatment for any FR 2320 data item or for all FR 
2320 data items, and confidential treatment will be reviewed on a case-
by-case basis.
    Abstract: The FR 2320 collects select parent only and consolidated 
balance sheet and income statement financial data and organizational 
structure data from savings and loan holding companies (SLHCs) exempt 
from initially filing Federal Reserve regulatory reports. The FR 2320 
is used by the Federal Reserve to analyze the overall financial 
condition of exempt SLHCs to ensure safe and sound operations. These 
data assist the Federal Reserve in the evaluation of a diversified 
holding company and in determining whether an institution is in 
compliance with applicable laws and regulations.
    2. Report title: Notifications Related to Community Development and 
Public Welfare Investments of State Member Banks.
    Agency form number: FR H-6.
    OMB control number: 7100-0278.
    Frequency: Event-generated.
    Reporters: State member banks.
    Estimated annual reporting hours: 182.
    Estimated average hours per response: Post Notification, 2 hours; 
Application (Prior Approval) 5 hours; and Extension of divestiture 
period, 5 hours.
    Number of respondents: Post Notification, 16; Application (Prior 
Approval), 29; and Extension of divestiture period, 1.
    General description of report: This information collection is 
authorized by the Federal Reserve Act, 12 U.S.C. 338a, and by the 
Board's Regulation H, 12 CFR 208.22. The obligation of state member 
banks to make public welfare investments under both the Reserve Bank 
post-notice and the Board's prior approval procedure is mandatory. The 
request for extension of the divestiture period is required to obtain a 
benefit. Individual respondent data generally are not regarded as 
confidential. However, a bank that submits confidential proprietary 
information may request confidential treatment of that information 
pursuant to section (b)(4) of the Freedom of Information Act (FOIA), 5 
U.S.C. 552(b)(4), and the information will be accorded confidential 
treatment if the institution can establish the potential for 
substantial competitive harm under the standards set forth in National 
Park & Conservation Ass'n v. Morton, 498 F.2d 765 (D.C. Cir.1974). Such 
a determination would be made on a case-by-case in response to a 
specific request for disclosure. If examination rations are included in 
a submission, those will be considered confidential under exemption 8 
of the FOIA, 5 U.S.C. 552(b)(8).
    Abstract: Regulation H requires state member banks planning to make 
community development or public welfare investments to comply with the 
Regulation H notification requirements: (1) If the investment does not 
require prior Board approval, a written notice must be sent to the 
appropriate Federal Reserve Bank; (2) if certain criteria are not met, 
and requires prior Board approval, a request for approval must be sent 
to the appropriate Federal Reserve Bank; and, (3) if the Board orders 
divestiture, but the bank cannot divest within the established time 
limit, a request or requests for extension of the divestiture period 
must be submitted to the appropriate Federal Reserve Bank.
    3. 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: Event-generated.
    Reporters: State member banks, national banks, bank holding 
companies, Edge and agreement corporations, and certain foreign banking 
organizations.
    Annual reporting hours: 1,013 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: 35.
    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 information 
submitted in the FR K-1 is considered to be public unless an 
institution requests confidential treatment for portions of the 
particular application or notification. Applicants may rely on any 
Freedom of Information Act (FOIA) exemption, but such requests for 
confidentiality must contain detailed justifications corresponding to 
the claimed FOIA exemption. Requests for confidentiality must be 
evaluated on a case-by-case basis.
    Abstract: Subpart A of Regulation K governs the foreign investments 
and activities of member banks, Edge and agreement corporations, bank 
holding companies (BHCs), and certain investments by foreign 
organizations. Subpart C of Regulation K governs investments in export 
trading companies. The FR K-1 information collection contains eleven 
attachments for the application and notification requirements embodied 
in Subparts A and C of Regulation K. The Federal Reserve requires these 
applications for regulatory and supervisory purposes and to allow the 
Federal Reserve to

[[Page 57107]]

fulfill its statutory obligations under the Federal Reserve Act and the 
Bank Holding Company Act of 1956. The applications are event-generated 
and provide the Federal Reserve with information necessary to evaluate 
each of the proposed transactions.
    4. Report title: International Applications and Prior Notifications 
Under Subpart B of Regulation K.
    Agency form number: FR K-2.
    OMB control number: 7100-0284.
    Frequency: On occasion.
    Reporters: Foreign banks.
    Annual reporting hours: 490 hours.
    Estimated average hours per response: 35 hours.
    Number of respondents: 14.
    General description of report: This information collection is 
mandatory (12 U.S.C. 3105, 3107, and 3108). The applying or notifying 
organization may request that portions of the information contained in 
the FR K-2 be afforded confidential treatment. To do so, applicants 
must demonstrate how the information for which confidentiality is 
requested would fall within the scope of one or more of the exemptions 
contained in the Freedom of Information Act. Any such request would 
have to be evaluated on a case-by-case basis.
    Abstract: Foreign banks are required to obtain the prior approval 
of the Federal Reserve to establish a branch, agency, or representative 
office; to acquire ownership or control of a commercial lending company 
in the United States; or to change the status of any existing office in 
the United States. The Federal Reserve uses the information, in part, 
to fulfill its statutory obligation to supervise foreign banking 
organizations with offices in the United States.
    5. Report title: 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 
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 
(BHCs), or BHCs and state chartered banks that are members of the 
Federal Reserve System
    Annual reporting hours: 11,924 hours.
    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: 279.
    General description of reports: The FR Y-3 application and FR Y-3N 
notification are mandatory (12 U.S.C. 1842(a), 1844(b), and 
1843(j)(1)(b)). The FR Y-4 notification is mandatory (12 U.S.C. 
1843(j)(1)(b)). These information collections are not given 
confidential treatment. Applicants may rely on any Freedom of 
Information Act (FOIA) exemption, but such requests for confidentiality 
must contain detailed justifications corresponding to the claimed FOIA 
exemption. Requests for confidentiality must be evaluated on a case-by-
case basis.
    Abstract: The Federal Reserve requires the submission of these 
filings 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). These filings collect 
information on proposals by BHCs involving formations, acquisitions, 
mergers, and nonbanking activities. The Federal Reserve must obtain 
this information to evaluate each individual transaction with respect 
to financial and managerial factors, permissibility, competitive 
effects, net public benefits, and the impact on the convenience and 
needs of affected communities.
    6. Report title: Application for a Foreign Organization to Acquire 
a Bank Holding Company.
    Agency form number: FR Y-3F.
    OMB control number: 7100-0119.
    Frequency: On occasion.
    Reporters: Any company organized under the laws of a foreign 
country seeking to acquire a U.S. subsidiary bank or bank holding 
company.
    Annual reporting hours: 440 hours.
    Estimated average hours per response: Initial application, 90 
hours; subsequent application, 70 hours.
    Number of respondents: Initial application, 1; subsequent 
application, 5.
    General description of report: This information collection is 
required to obtain or retain a benefit under sections 3(a), 3(c), and 
5(a) through 5(c) of the Bank Holding Company Act (12 U.S.C. 1842(a) 
and (c) and 1844(a) through (c)). The information provided in the 
application is not confidential unless the applicant specifically 
requests confidentiality and the Federal Reserve approves the request. 
The instructions convey the confidentiality requirements to applicants.
    Abstract: Under the Bank Holding Company Act (BHCA), submission of 
this application is required for any company organized under the laws 
of a foreign country seeking to acquire a U.S. subsidiary bank or bank 
holding company. Applicants must provide financial and managerial 
information, discuss the competitive effects of the proposed 
transaction, and discuss how the proposed transaction would enhance the 
convenience and needs of the community to be served. The Federal 
Reserve uses the information, in part, to fulfill its supervisory 
responsibilities with respect to foreign banking organizations in the 
United States.

    Board of Governors of the Federal Reserve System, September 19, 
2014.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2014-22687 Filed 9-23-14; 8:45 am]
BILLING CODE 6210-01-P