[The Regulatory Plan and Unified Agenda of Federal Regulations]
[Federal Reserve System Semiannual Regulatory Agenda]
[From the U.S. Government Printing Office, www.gpo.gov]


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Part LVII





Federal Reserve System





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Semiannual Regulatory Agenda


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FEDERAL RESERVE SYSTEM (FRS)                                           
  
  
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FEDERAL RESERVE SYSTEM

12 CFR Ch. II

Semiannual Regulatory Flexibility Agenda

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Semiannual agenda.

_______________________________________________________________________

SUMMARY: The Board is issuing this agenda under the Regulatory 
Flexibility Act and the Board's Statement of Policy Regarding Expanded 
Rulemaking Procedures. The Board anticipates having under consideration 
regulatory matters as indicated below during the period October 1, 
1994, through April 1, 1995. The next semiannual agenda will be 
published in April 1995.

DATES: Comments about the form or content of the agenda may be 
submitted any time during the next 6 months.

ADDRESSES: Comments should be addressed to William W. Wiles, Secretary 
of the Board, Board of Governors of the Federal Reserve System, 
Washington, DC 20551.

FOR FURTHER INFORMATION CONTACT: A staff contact for each item is 
indicated with the regulatory description below.

SUPPLEMENTARY INFORMATION:  The Board is publishing its October 1994 
agenda as part of the October 1994 Unified Agenda of Federal 
Regulations, which is coordinated by the Office of Management and 
Budget under Executive Order 12866. Participation by the Board in the 
Unified Agenda is on a voluntary basis.

    The Board's agenda is divided into three sections. The first, 
Proposed Rule Stage, reports on matters the Board may consider for 
public comment during the next 6 months. The second section, Final 
Rule Stage, reports on matters that have been proposed and are 
under Board consideration. A third section, Completed Actions, 
reports on regulatory matters the Board has completed or is not 
expected to consider further.

    A dot () preceding an entry indicates a new matter that 
was not a part of the Board's previous agenda and which the Board 
has not completed.

Barbara R. Lowrey,

Associate Secretary of the Board.

                                               Proposed Rule Stage                                              
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
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5070        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control..................    7100-AB39 
5071        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control..................    7100-AB41 
5072        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-             
            0835).................................................................................    7100-AB77 
5073        Regulation: K--International Banking Operations.......................................    7100-AB58 
5074        Regulation: M--Consumer Leasing (Docket Number: R-0815)...............................    7100-AB74 
5075        Regulation: T--Credit by Brokers and Dealers (Docket Number: R-0772)..................    7100-AB28 
5076        Regulation: U--Credit by Banks for the Purpose of Purchasing or Carrying Margin Stocks    7100-AB65 
5077        Regulation: Y--Bank Holding Companies and Change in Bank Control......................    7100-AB29 
5078        Lifeline Accounts.....................................................................    7100-AB40 
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                                                Final Rule Stage                                                
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
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5079        Regulation: C--Home Mortgage Disclosure (Docket Number: R-0839).......................    7100-AB63 
5080        Regulation: E--Electronic Fund Transfers (Docket Number: R-0830)......................    7100-AA77 
5081        Regulation: H--Membership of State Banking Institutions in the Federal System (Docket               
            Number R-0838)........................................................................    7100-AB83 
5082        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-             
            0795).................................................................................    7100-AB57 
5083        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-             
            0823).................................................................................    7100-AB76 
5084        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-             
            0837).................................................................................    7100-AB84 
5085        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-             
            0845).................................................................................    7100-AB85 
5086        Regulation: K--International Banking Operations (Docket Number: R-0754)...............    7100-AB31 
5087        Regulation: K--International Banking Operations (Docket Number: R-0793)...............    7100-AB46 
5088        Regulation: K--International Banking Operations (Docket Number: R-0820)...............    7100-AB67 
5089        Regulation: L--Depository Institution Management Interlocks (Docket Number: R-0825)...    7100-AB72 
5090        Regulation: S--Reimbursement for Providing Financial Records; Recordkeeping                         
            Requirements for Certain Financial Records (Docket Number: R-0807)....................    7100-AB64 
5091        Regulation: T--Credit by Brokers and Dealers (Docket Number: R-0840)..................    7100-AB78 
5092        Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-                 
            0686).................................................................................    7100-AB07 
5093        Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-                 
            0843).................................................................................    7100-AB79 
5094        Regulation: BB--Community Reinvestment (Docket Number: R-0822)........................    7100-AB75 
5095        Regulation: DD--Truth in Savings (Docket Number: R-0836)..............................    7100-AB80 
5096        Federal Reserve Bank Services (Docket Number: R-0817).................................    7100-AB71 
5097        Proposed Policy Statement on Privately Operated Large-Dollar Multilateral Netting                   
            Systems (Docket Number: R-0842).......................................................    7100-AB81 
5098        Risk-Based Capital Standards (Docket Number: R-0802)..................................    7100-AB50 
5099        Standards for Safety and Soundness (Docket Number: R-0766)............................    7100-AB52 
5100        Regulation: Ten Percent Revenue Limit on Bank-Ineligible Activities of Subsidiaries of              
            Bank Holding Companies (Docket Number: R-0841)........................................    7100-AB82 
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                                                Completed Actions                                               
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
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5101        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-             
            0803).................................................................................    7100-AB20 
5102        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-             
            0773).................................................................................    7100-AB55 
5103        Regulation: J--Collection of Checks and Other Items by Federal Reserve Banks and Funds              
            Transfers Through Fedwire (Docket Number: R-0821).....................................    7100-AB66 
5104        Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-                 
            0832).................................................................................    7100-AB73 
5105        Regulation: DD--Truth in Savings (Docket Number: R-0812)..............................    7100-AB68 
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FEDERAL RESERVE SYSTEM (FRS)                        Proposed Rule Stage
  
  
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5070. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL

Legal Authority:  12 USC 1831m

CFR Citation:  12 CFR 208; 12 CFR 225

Legal Deadline:  Final, Statutory, January 3, 1993.

Abstract: During 1992, the Board's staff consulted with the other 
Federal banking agencies regarding the implementation of section 112, 
the bank auditing requirements, of the Federal Deposit Insurance 
Corporation Improvement Act of 1991. The section includes requirements 
for insured commercial banks to receive audits of their annual reports 
by independent public accountants, requirements for banks and their 
auditors to report certain information to the Board, and requirements 
for independent audit committees for banks. In some cases, these 
requirements can be satisfied by comparable arrangements at the bank 
holding company level. The Act generally exempts insured depository 
institutions from these requirements when their total assets are less 
than $150 million, unless a higher threshold is chosen by the Federal 
Deposit Insurance Corporation (FDIC).
The FDIC, the agency with primary responsibility for implementing this 
mandate through regulations, finalized its regulation in May 1993, 
which will apply to all FDIC-insured banks and thrifts. The FDIC's 
regulation applied these requirements to depository institutions with 
total assets (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board may consider amendments to 
Regulations H and Y by          12/00/94

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: of $500 million or more. The 
FDIC, as well as the Board, issued implementing examiner guidelines in 
October 1993 and January 1994, respectively.
The Board has joint rulemaking authority with the other banking 
agencies regarding the enforcement provisions of section 112. It is 
expected that the Board and the other agencies will request public 
comment by year-end on proposed regulations on these enforcement 
matters.

Agency Contact: Gerald A. Edwards, Jr., Assistant Director, Federal 
Reserve System, Division of Banking Supervision and Regulation, 202 
452-2741

RIN: 7100-AB39
_______________________________________________________________________

5071. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL

Legal Authority:  12 USC 1831n; 12 USC 1833d

CFR Citation:  12 CFR 208; 12 CFR 225

Legal Deadline:  Final, Statutory, December 19, 1992.

Abstract: During 1992 and 1993, the Board's staff consulted with the 
other Federal banking agencies regarding the implementation of section 
121, the bank accounting requirements, of the Federal Deposit Insurance 
Corporation Improvement Act of 1991. These requirements include the 
implementation of disclosures of the fair market value of assets, 
liabilities, and certain projects, which may result in the revision of 
reporting requirements for banks and bank holding companies. The 
accounting provisions of the Act do not include exemptions for small 
institutions. Thus, any changes to regulations and reporting 
requirements would likely affect smaller State member banks.
The Federal Financial Institutions Examination Council (FFIEC) has 
requested public comment on proposed reporting requirements, and the 
comment period expired on June 14, 1993. Furthermore, the FFIEC 
proposed on March 9, 1994, new Call Report items for derivative 
instruments, including new information on their market values. The 
comment period for this proposal expired on (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board may consider amendments to 
Regulations H and Y by          12/00/94

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: ABSTRACT CONT: May 9, 1994, and the comments 
received are under review. Following final action by the FFIEC, the 
Board is expected to consider requesting comment on certain changes to 
its regulations in order to implement section 121.

Agency Contact: Gerald A. Edwards, Jr., Assistant Director, Federal 
Reserve System, Division of Banking Supervision and Regulation, 202 
452-2741

RIN: 7100-AB41
_______________________________________________________________________

5072. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0835)

Legal Authority:  12 USC 221 et seq; 12 USC 1841 et seq; 12 USC 3901 et 
seq

CFR Citation:  12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In May 1994, the Board issued for public comment proposals on 
the capital treatment of recourse arrangements and direct credit 
substitutes. The proposal (1) formally defines recourse and direct 
credit substitutes, (2) reduces the risk-based capital charge for low-
level recourse arrangements to the maximum amount of possible loss 
under the recourse obligation up to the effective capital charge, and 
(3) requires the same risk-based capital charge for first loss direct 
credit substitutes as is currently applied to recourse transactions (59 
FR 27115, May 25, 1994).
The proposal seeks preliminary public comment on an approach to 
assessing risk-based capital on banking organizations' risk exposures 
associated with certain asset securitizations. Under this approach, the 
capital charge would be based upon the relative risk of loss of the 
exposure. The capital charge that banking organizations would incur on 
(cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  05/25/94                    59 FR 27115
Further Board action by         12/00/94

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: first loss positions would be 
dollar-for-dollar up to the position's effective risk-based capital 
requirement. Second loss positions that are rated investment grade 
would be assessed capital against the amount of the position, rather 
than against the amount of assets for which the position is providing 
credit protection. Senior securities that receive the highest 
investment rating would be assigned to the 20 percent risk category.
Small entities would be affected only to the extent that they engage in 
extending recourse arrangements or direct credit substitutes; it is not 
expected that the proposal would have a significant economic impact. 
Following review of the public comments, the Board is expected to take 
further action by year-end.

Agency Contact: Thomas R. Boemio, Supervisory Financial Analyst, 
Federal Reserve System, Division of Banking Supervision and Regulation, 
202 452-2982

RIN: 7100-AB77
_______________________________________________________________________

5073. REGULATION: K--INTERNATIONAL BANKING OPERATIONS

Legal Authority:  12 USC 211

CFR Citation:  12 CFR 211

Legal Deadline: None

Abstract: Within the next four months, the Board, in consultation with 
the Secretary of the Treasury, will consider action to implement a 
portion of section 202(a) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 with respect to the criteria to be used in 
evaluating the operations of foreign banks that the Board has 
determined are not subject to comprehensive supervision or regulation 
on a consolidated basis. It is undetermined what economic impact this 
proposal would have on small institutions.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board will consider requesting 
comment by                      12/00/94

Small Entities Affected: Undetermined

Government Levels Affected: None

Agency Contact: Sandy Richardson, Managing Senior Counsel, Federal 
Reserve System, Legal Division, 202 452-6406

RIN: 7100-AB58
_______________________________________________________________________

5074. REGULATION: M--CONSUMER LEASING (DOCKET NUMBER: R-0815)

Legal Authority:  15 USC 1604

CFR Citation:  12 CFR 213

Legal Deadline: None

Abstract: The Board is proposing to undertake a complete review of 
Regulation M, under the Board's Regulatory Planning and Review Program. 
The Program calls for the periodic review of Board regulations to 
determine whether a regulation should be eliminated, simplified, 
updated, or otherwise revised. To gather information needed for this 
review, and to ensure the participation of interested parties at the 
beginning of the process, the Board, in November 1993, approved issuing 
for public comment an advance notice of the proposed rulemaking, 
soliciting comment, generally, on revisions to the regulation, while 
also soliciting comment on specific issues dealing with early 
termination penalties, advertising, and segregation of disclosure terms 
from other information (58 FR 61035, November 19, 1993). The comment 
period, originally scheduled to end on January 24, was extended to 
February 24, 1994. Following review of the public comments, the Board 
will decide within the next two months whether to pursue proposed 
revisions to the regulation.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board approved requesting 
comment                         11/19/93                    58 FR 61035
Further Board action by         10/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Adrienne D. Hurt, Managing Counsel, Financial Services 
Section, Federal Reserve System, 202 452-2412

RIN: 7100-AB74
_______________________________________________________________________

5075. REGULATION: T--CREDIT BY BROKERS AND DEALERS (DOCKET NUMBER: R-
0772)

Legal Authority:  15 USC 78g Securities Exchange Act of 1934, as 
amended; 15 USC 78h Securities Exchange Act of 1934, as amended; 15 USC 
78w Securities Exchange Act of 1934, as amended

CFR Citation:  12 CFR 220

Legal Deadline: None

Abstract: The Board is conducting a periodic review of Regulation T, 
which regulates extensions of credit by and to brokers and dealers. In 
August 1992, the Board approved a general request for comments to aid 
in its review (57 FR 37109, August 18, 1992). In July 1994, the Board 
proposed amendments in two specific areas of Regulation T (Docket 
Number R-0840). Following completion of the evaluation of the public 
comments, the Board will again seek comment on any additional 
regulatory proposals that may be developed. It is not anticipated that 
the revisions would have a significant economic impact on the overall 
lending activities of a substantial number of small brokerage firms.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board approved requesting 
comment                         08/18/92                    57 FR 37109
Further Board action expected by11/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Laura Homer, Assistant Director, Federal Reserve 
System, Division of Banking Supervision and Regulation, 202 452-2781

RIN: 7100-AB28
_______________________________________________________________________

5076. REGULATION: U--CREDIT BY BANKS FOR THE PURPOSE OF PURCHASING OR 
CARRYING MARGIN STOCKS

Legal Authority:  15 USC 78g Securities Exchange Act of 1934, as 
amended; 15 USC 78h Securities Exchange Act of 1934, as amended; 15 USC 
78w Securities Exchange Act of 1934, as amended

CFR Citation:  12 CFR 221

Legal Deadline: None

Abstract: During the second half of 1994, the Board plans to begin a 
review of Regulation U, which generally regulates bank extensions of 
credit that are secured by publicly traded stock. The review will 
consider whether any provisions of the regulation are in need of 
updating and whether any substantive changes are necessary because of 
developments in the banking and securities markets. Public comment will 
be requested for any regulatory proposals that may be developed 
following the review. It is not anticipated that the revisions will 
have a significant economic impact on the overall lending activities of 
a substantial number of small banks.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board may issue advance notice 
of proposed rulemaking and 
request for comment by          12/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Laura Homer, Assistant Director, Federal Reserve 
System, Division of Banking Supervision and Regulation, 202 452-2781

RIN: 7100-AB65
_______________________________________________________________________

5077. REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL

Legal Authority:  12 USC 1834a; 12 USC 1834b

CFR Citation:  12 CFR 225

Legal Deadline: None

Abstract: Sections 233 and 234 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 require the Board and other 
regulatory agencies to become involved in an effort to get banks to 
participate in certain types of lending activities in designated 
distressed communities. Banks that do the appropriate type of lending 
in the appropriate ``distressed communities'' will receive assessment 
credits for their FDIC insurance premiums. The law requires the Board 
to receive notice of the banks' intent to involve themselves in these 
activities, to assist the banks to define and locate the appropriate 
communities, and to define certain terms by regulation. To accomplish 
the mandates of the statute, it may be necessary to amend Regulation Y 
for purposes of receiving notice of the banks' and holding companies' 
intent to form the types of entities discussed in the law and to do the 
type of lending intended by the law. It may also be necessary to amend 
the regulation to provide the definitions of ``nonprofit organization'' 
and ``small business'' called for by the statute. It is not expected 
that any proposed regulation would have a significant economic impact 
on small institutions. (cont)

Timetable: Next Action Undetermined

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: These provisions only take 
effect if, and when, Congress appropriates funds to cover the impact 
they may have on the Bank Insurance Fund. There is currently 
legislation pending, as part of the Community Development Financial 
Institution bill, to appropriate funds. If the legislation is adopted, 
major responsibility for implementation will be assumed by the FDIC and 
the new oversight board that will be formed by the legislation. 
Consequently, the timing is uncertain.

Agency Contact: Glenn E. Loney, Assistant Director, Federal Reserve 
System, Division of Consumer and Community Affairs, 202 452-3585

RIN: 7100-AB29
_______________________________________________________________________

5078. LIFELINE ACCOUNTS

Legal Authority:  12 USC 1817; 12 USC 1834

CFR Citation:  None

Legal Deadline: None

Abstract: Section 232 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 requires the Board with the FDIC to establish 
minimum requirements for ``lifeline'' transaction accounts. An insured 
depository institution that chooses to offer accounts that meet these 
requirements will be assessed deposit insurance premiums on those 
deposits at a rate of 1/2 the maximum assessment rate. The Act sets 
forth factors that the Board and the FDIC must consider in setting the 
account requirements, such as whether the amount of the fee, if any, 
that is charged for routine transactions does not exceed a minimal 
level.
It is expected that the Board will seek public comment by year-end on a 
proposal to implement section 232.
It is not anticipated that implementation of the law, due to its 
voluntary character, will have a significant impact on a substantial 
number of small institutions.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board action expected by year-
end                             12/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Michael S. Bylsma, Senior Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs, 202 452-3667

RIN: 7100-AB40
_______________________________________________________________________

FEDERAL RESERVE SYSTEM (FRS)                           Final Rule Stage
  
  
_______________________________________________________________________
  
5079. REGULATION: C--HOME MORTGAGE DISCLOSURE (DOCKET NUMBER: R-0839)

Legal Authority:  12 USC 2804

CFR Citation:  12 CFR 203

Legal Deadline: None

Abstract: Regulation C implements the Home Mortgage Disclosure Act 
(HMDA), which requires certain lenders to report information in 
connection with applications they receive for mortgage and other 
housing-related loans. In June 1994, the Board approved issuing for 
public comment proposed amendments to Regulation C to set an earlier 
deadline for reporting HMDA data to supervisory agencies; require data 
submission to be in machine-readable form; require lenders to keep 
their records of data current during the year as the data are being 
collected; and make a number of other changes (59 FR 30310, June 13, 
1994). The Board also solicited comment on several other issues, 
including whether consideration should be given to changing the 
categories used for collection of data on the race or national origin 
of loan applicants under HMDA to conform to the categories used by the 
U.S. Office of Management and Budget. The Board also requested comment 
on specific areas that should be addressed in the commentary to 
Regulation C, now in development.
The revisions, if adopted, would be expected to have an economic impact 
on some portion of small lenders. (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested comment         06/13/94                    59 FR 30310
Board is expected to take final 
action by                       12/00/94

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: ABSTRACT CONT: (Only lenders with assets under 
$10 million or that make fewer than 100 home purchase loans and 
mortgage refinancings are exempt from the reporting requirements of 
Regulation C.)
Following review of the public comments, the Board is expected to take 
further action by year-end.

Agency Contact: John Wood, Senior Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs, 202 452-2412

RIN: 7100-AB63
_______________________________________________________________________

5080. REGULATION: E--ELECTRONIC FUND TRANSFERS (DOCKET NUMBER: R-0830)

Legal Authority:  15 USC 1693 et seq Electronic Fund Transfer Act

CFR Citation:  12 CFR 205

Legal Deadline: None

Abstract: The Board is conducting a review of Regulation E, which 
implements the Electronic Fund Transfer Act and establishes the basic 
rights, liabilities, and responsibilities of consumers who use 
electronic fund transfer services and of financial institutions that 
offer these services (whether or not these institutions hold the 
consumer's account). The review is part of the Board's Regulatory 
Planning and Review Program which provides for the periodic review of 
Board regulations to determine whether a regulation should be 
eliminated, simplified, updated or otherwise revised.
In February 1994, the Board approved issuing for public comment a 
revised Regulation E that includes, among other things, simplified 
language and format (59 FR 10684, March 7, 1994). As part of the 
proposal, the scope of several exemptions would be expanded. A small 
institution exemption would apply to institutions with assets under 
$100,000; currently the exemption applies to institutions with assets 
under $25,000. Also under the proposal, the staff commentary to 
Regulation E would be significantly improved to facilitate compliance. 
As a (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board approved requesting public 
comment                         03/07/94                    59 FR 10684
Further Board action by         12/00/94

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: whole, the proposed changes to 
Regulation E would likely reduce regulatory burden within the limits of 
a very specific statute, without sacrificing consumer benefits. The 
proposals are not expected to have a significant economic impact on 
small institutions.
Following review of the public comments, the Board is expected to take 
further action by year-end.

Agency Contact: Adrienne D. Hurt, Managing Counsel, Financial Services 
Section, Federal Reserve System, Division of Consumer and Community 
Affairs, 202 452-2412

RIN: 7100-AA77
_______________________________________________________________________

5081.  REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN 
THE FEDERAL SYSTEM (DOCKET NUMBER R-0838)

Legal Authority:  12 USC 338a

CFR Citation:  12 CFR 208

Legal Deadline: None

Abstract: Section 6(b) of the Depository Institutions Disaster Relief 
Act of 1992 authorizes State member banks to make investments designed 
primarily to promote the public welfare to the extent permissible under 
State law and subject to regulation by the Board. To implement section 
6(b), in May 1994, the Board published for comment an amendment to 
Regulation H to be incorporated in a new section entitled Community 
Development and Public Welfare Investments (59 FR 27247, May 26, 1994). 
The proposed amendment will not have a significant economic impact on a 
substantial number of small entities, and will reduce regulatory burden 
for many State member banks, including small institutions, by 
permitting them to make certain investments that had previously 
required Board approval, and will have no effect in other cases.
Following review of the public comments, the Board is expected to take 
further action within the next three months.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  05/26/94                    59 FR 27247
Further Board action by         11/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Manley Williams, Attorney, Federal Reserve System, 
Legal Division, 202 452-5565

RIN: 7100-AB83
_______________________________________________________________________

5082. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0795)

Legal Authority:  12 USC 1844(b); 12 USC 3909

CFR Citation:  12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In February 1993, the Board issued for public comment a 
proposed limitation on deferred tax assets for risk-based and leverage 
capital purposes (58 FR 8007, February 11, 1993). This proposal is in 
response to the adoption, by the Financial Accounting Standards Board, 
of Statement No. 109 (FASB 109) which provides new accounting guidance 
on deferred tax assets. This proposal will affect the treatment of 
these assets for capital purposes for all State member banks and bank 
holding companies regardless of size. However, it is not expected that 
the proposal will have a significant economic impact on a substantial 
number of small banking organizations, as the vast majority of small 
banking organizations currently have very limited amounts of net 
deferred tax assets as a component of their capital structures. 
Following discussions with the other Federal banking agencies on the 
appropriate treatment of deferred tax assets in a final rule, the Board 
is expected to take further action within the next three months.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  02/11/93                     58 FR 8007
Further Board action by         11/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Charles Holm, Project Manager, Federal Reserve System, 
Division of Banking Supervision and Regulation, 202 452-3502

RIN: 7100-AB57
_______________________________________________________________________

5083. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0823)

Legal Authority:  12 USC 221 et seq; 12 USC 1841 et seq; 12 USC 3901 et 
seq

CFR Citation:  12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: On May 31, 1993, the Financial Accounting Standards Board 
issued a new accounting standard, FASB Statement Number 115, 
``Accounting for Certain Investments in Debt and Equity Securities,'' 
which, in essence, added a new component to common stockholders' 
equity, ``net unrealized holding gains and losses on securities 
available for sale.'' In August 1993, the Board approved the adoption 
of FASB 115 for reporting purposes. In December 1993, the Board 
approved issuing for public comment a proposal to amend its risk-based 
and leverage capital guidelines (Regulations H and Y) to include ``net 
unrealized gains and losses on securities available for sale'' in Tier 
1 capital (58 FR 68563, December 28, 1993). The amendment to the risk-
based capital and leverage guidelines will affect bank holding 
companies with total consolidated assets of $150 million or more and 
all State member banks. The proposal is not expected to have a 
significant economic impact on a substantial number of small banks. 
Following review of the public comments, the Board is expected to take 
further action within the next four months.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  12/28/93                    58 FR 68563
Further Board action by         12/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Arleen Lustig, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation, 202 
452-2987

RIN: 7100-AB76
_______________________________________________________________________

5084.  REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN 
THE FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0837)

Legal Authority:  12 USC 248(a); 12 USC 321 to 338a; 12 USC 481 to 486; 
12 USC 1814; 12 USC 1831o; 12 USC 1831p-1; 12 USC 1844(b); 12 USC 3907; 
12 USC 3909

CFR Citation:  12 CFR 208, app A; 12 CFR 225, app A

Legal Deadline: None

Abstract: In May 1994, the Board and the Office of the Comptroller of 
the Currency (OCC) issued a joint notice of proposed rulemaking. The 
proposal would permit institutions regulated by the OCC and the Federal 
Reserve to net (that is, offset) positive and negative mark-to-market 
values of interest rate and exchange rate contracts that are subject to 
legally enforceable bilateral netting arrangements, to calculate a 
single current exposure for the netting contract (59 FR 26456, May 20, 
1994). Institutions would have to have reasoned legal opinions 
concluding that the bilateral netting arrangement is legally 
enforceable in all relevant jurisdictions. The joint proposal is 
consistent with an amendment to the Basle Accord, which was announced 
on July 15, 1994. It is not expected that the proposal will have a 
significant economic impact on a substantial number of small business 
entities.
Following review of the public comments, the Board will take further 
action by year-end.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  05/20/94                    59 FR 26456
Further Board action by         12/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Roger Cole, Deputy Associate Director, Federal Reserve 
System, Division of Banking Supervision and Regulation, 202 452-2618

RIN: 7100-AB84
_______________________________________________________________________

5085.  REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN 
THE FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0845)

Legal Authority:  12 USC 248(a); 12 USC 321 to 338a; 12 USC 481 to 486; 
12 USC 1814; 12 USC 1831o; 12 USC 1831p-1; 12 USC 1844(b); 12 USC 3907; 
12 USC 3909

CFR Citation:  12 CFR 208, app A; 12 CFR 225, app A

Legal Deadline: None

Abstract: On August 3, 1994, the Board approved issuing for public 
comment a proposal to amend the risk-based capital treatment of 
potential future exposure (Federal Register cite unavailable). The 
effect of the proposal, if adopted, would be twofold. First, the 
proposal would revise and expand the potential future exposure of 
derivative contracts. Under this part of the proposal, long-dated 
interest and exchange rate contracts would be subject to new higher 
conversion factors and new conversion factors would be applied to 
equity, precious metal, and other commodity derivative contracts. The 
second part of the proposal would recognize effects of netting 
arrangements in the calculation of potential future exposure for 
derivative contracts subject to qualifying netting arrangements. This 
part of the proposal is contingent on the adoption of a final amendment 
to the Board's risk-based capital guidelines to recognize bilateral 
close-out netting arrangements (Docket Number: R-0837). It is not 
expected that this proposal will have a significant economic impact on 
a substantial number of small business entities.
Following review of the public comments, the Board (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board approved request for 
public comment                  08/03/94
Further Board Action by         02/00/95

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: is expected to take further 
action within the next six months.

Agency Contact: Roger Cole, Deputy Associate Director, Federal Reserve 
System, Division of Banking Supervision and Regulation, 202 452-2618

RIN: 7100-AB85
_______________________________________________________________________

5086. REGULATION: K--INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-
0754)

Legal Authority:  12 USC 3105; 12 USC 3108

CFR Citation:  12 CFR 211

Legal Deadline: None

Abstract: In January 1993, following review of the public comments, the 
Board issued a final rule implementing sections 202-204 and 206 of 
title II of the Federal Deposit Insurance Corporation Improvement Act 
of 1991 which, among other things, require prior approval of the Board 
for the establishment of branches, agencies, commercial lending 
companies, and representative offices by foreign banks in the United 
States (58 FR 6348, January 28, 1993). It is not expected that the 
final rule will have a significant economic impact on small 
institutions.
The Board also requested additional public comment on those portions of 
the final rule that deal with representative offices of foreign banks. 
Comments were sought on the definition of representative office and on 
the standards that should govern the activities that a representative 
office may conduct. Following review of the public comments, the Board 
is expected to take further action within the next four months.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board issued an interim rule    04/15/92                    57 FR 12992
Board issued a final rule and 
request for comment             01/28/93                     58 FR 6348
Further Board action by         12/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Ann Misback, Managing Senior Counsel, Federal Reserve 
System, Legal Division, 202 452-3788

RIN: 7100-AB31
_______________________________________________________________________

5087. REGULATION: K--INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-
0793)

Legal Authority:  12 USC 3105; 12 USC 3108

CFR Citation:  12 CFR 211

Legal Deadline: None

Abstract: In January 1993, the Board issued for public comment proposed 
amendments to Regulation K implementing section 202(a) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) with 
respect to the limitation on the powers of State branches and agencies 
of foreign banks (58 FR 513, January 6, 1993). Following review of the 
public comments and in consultation with the FDIC, the Board is 
expected to take further action by year-end. It is not expected that a 
final rule would have a significant economic impact on small 
institutions.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  01/06/93                      58 FR 513
Further Board action by         12/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Ann Misback, Managing Senior Counsel, Federal Reserve 
System, Legal Division, 202 452-3788

RIN: 7100-AB46
_______________________________________________________________________

5088. REGULATION: K--INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-
0820)

Legal Authority:  PL 102-242

CFR Citation:  12 CFR 211, subpart B

Legal Deadline: None

Abstract: Section 203(a) of the Foreign Bank Supervision Enhancement 
Act of 1991 provides that the cost of examinations of branches, 
agencies, and representative offices of foreign banks in the United 
States shall be assessed against the foreign bank or its parent. In 
October 1993, the Board approved issuing for public comment a proposed 
methodology for assessing such examination costs (58 FR 65560, December 
15, 1993). Foreign banks with branches, agencies, or representative 
offices in the United States will be affected by the proposal.
The proposal is not expected to have a significant economic impact on a 
substantial number of small business entities. Following review of the 
public comments, the Board is expected to take further action by year-
end.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  12/15/93                    58 FR 65560
Further Board action by         12/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Sandy Richardson, Managing Senior Counsel, Federal 
Reserve System, Legal Division, 202 452-6406

RIN: 7100-AB67
_______________________________________________________________________

5089. REGULATION: L--DEPOSITORY INSTITUTION MANAGEMENT INTERLOCKS (DOCKET 
NUMBER: R-0825)

Legal Authority:  12 USC 3207

CFR Citation:  12 CFR 212

Legal Deadline: None

Abstract: Regulation L implements provisions of the Depository 
Institution Management Interlock Act (DIMIA), which regulates 
management interlocks among depository institutions. Among DIMIA's 
prohibitions are provisions barring management interlocks between 
depository organizations with offices in the same community or 
metropolitan statistical area (MSA). In November 1993, the Board 
approved soliciting comment on an amendment to Regulation L that would 
permit interlocks otherwise prohibited under the community or MSA 
provisions if the institutions involved hold in the aggregate less than 
20 percent of the deposits in the community or MSA (59 FR 7909, 
February 17, 1994). The amendment should benefit smaller organizations 
by giving them access to a larger pool of potential management 
officials. It is not expected that the proposal will have a significant 
economic impact on a substantial number of depository institutions.
Following review of the public comments, the Board is expected to take 
further action within the next six months.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  02/17/94                     59 FR 7909
Further Board action by         02/00/95

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Thomas M. Corsi, Senior Attorney, Federal Reserve 
System, Legal Division, 202 452-3275

RIN: 7100-AB72
_______________________________________________________________________

5090. REGULATION: S--REIMBURSEMENT FOR PROVIDING FINANCIAL RECORDS; 
RECORDKEEPING REQUIREMENTS FOR CERTAIN FINANCIAL RECORDS (DOCKET NUMBER: 
R-0807)

Legal Authority:  PL 102-550

CFR Citation:  12 CFR 219, subpart B

Legal Deadline:  Final, Statutory, December 31, 1993.

Abstract: In August 1993, the Board approved issuing for public comment 
a proposed joint regulation, promulgated by the Board and the Treasury 
Department pursuant to section 21(b) of the Federal Deposit Insurance 
Act, as amended by the Annunzio-Wylie Anti-Money Laundering Act of 1992 
(58 FR 46024; August 31, 1993). The proposed regulation would establish 
recordkeeping requirements for wire transfers by all financial 
institutions including nonbank financial institutions, such as broker/
dealers in securities, check-cashing businesses, money-transmitting 
businesses, and businesses that issue or redeem money orders or 
travelers' checks.
This proposal may have a significant economic impact on a substantial 
number of small businesses that provide check-cashing services, money-
transmitting services, and services concerning the issuance or 
redemption of money orders and travelers' checks, because such 
businesses may not currently collect or maintain the information 
required.
Following review of the public comments and review by the Department of 
the Treasury's Bank Secrecy Act Advisory (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board approved requesting 
comment                         08/31/93                    58 FR 46024
Further Board action by         12/00/94

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: ABSTRACT CONT: Group, the Board is expected to 
take further action during the second half of 1994.

Agency Contact: Elaine Boutilier, Senior Attorney, Federal Reserve 
System, Legal Division, 202 452-2418

RIN: 7100-AB64
_______________________________________________________________________

5091.  REGULATION: T--CREDIT BY BROKERS AND DEALERS (DOCKET 
NUMBER: R-0840)

Legal Authority:  15 USC 78g Securities Exchange Act of 1934, as 
amended; 15 USC 78h Securities Exchange Act of 1934, as amended; 15 USC 
78w Securities Exchange Act of 1934, as amended

CFR Citation:  12 CFR 220

Legal Deadline: None

Abstract: In August 1992, the Board issued an advance notice of 
proposed rulemaking requesting public comment in connection with a 
general review of Regulation T (Docket Number R-0772; RIN 7100-AB28). 
As part of this review, in June 1994, the Board approved issuing for 
public comment specific Regulation T amendments covering (1) the time 
periods within which customers must pay for securities or meet initial 
margin calls, and (2) exemptions involving U.S. Government securities 
(59 FR 33923, July 1, 1994). The amendments would shorten the 
Regulation T payment periods by two days, corresponding with the SEC's 
shortening the standard securities settlement period. Other amendments 
would exempt from Regulation T certain broker-dealers who limit their 
activities to transactions involving U.S. Government securities and 
create a new account to allow similar transactions with broker-dealers 
who are not exempt. Related amendments would raise the de minimis 
amount below which liquidation of unpaid transactions is not required 
from $500 to $1000, require brokers seeking extensions of the payment 
periods to obtain them from their designated examining authority, and 
clarify that foreign settlement (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested comment         07/01/94                    59 FR 33923
Further Board action expected by11/00/94

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: periods are used to calculate 
when restrictions in the cash account are applied to foreign 
securities.
It is not anticipated that the revisions would have a significant 
economic impact on the overall lending activities of a substantial 
number of small brokerage firms. Following review of the public 
comments, the Board is expected to take further action within the next 
three months.

Agency Contact: Laura Homer, Assistant Director, Federal Reserve 
System, Division of Banking Supervision and Regulation, 202 452-2781

RIN: 7100-AB78
_______________________________________________________________________

5092. REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBER: R-0686)

Legal Authority:  PL 101-73, 103 Stat 183

CFR Citation:  12 CFR 225, subpart H

Legal Deadline: None

Abstract: In February 1990, the Board approved issuing for public 
comment a proposed regulation, which implements section 914 of the 
Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 
requiring banks and bank holding companies to provide notice to the 
Federal Reserve System 30 days before adding any individual to the 
institution's board of directors or employing any individual as a 
senior executive officer under certain circumstances (55 FR 6787, 
February 27, 1990). Notice would be required if the institution is 
failing to meet minimum capital standards or is otherwise in a troubled 
condition, has undergone a change in control within the past two years, 
or has received a bank charter within the past two years. The 
regulation defines ``senior executive officer,'' ``troubled 
condition,'' and ``change in control.''
The proposal is not expected to have a significant economic impact on a 
substantial number of small business entities. State member banks and 
bank holding companies will be affected if they meet one of the 
criteria that triggers the notice requirements. Following review of 
public comments, the Board is expected (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board approved proposal for 
comment                         02/27/90                     55 FR 6787
Further Board action by         02/00/95

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: to take further action within 
the next six months.

Agency Contact: Robert Frierson, Assistant General Counsel, Federal 
Reserve System, Legal Division, 202 452-3711

RIN: 7100-AB07
_______________________________________________________________________

5093.  REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE IN BANK 
CONTROL (DOCKET NUMBER: R-0843)

Legal Authority:  12 USC 1972(1)

CFR Citation:  12 CFR 225.7

Legal Deadline: None

Abstract: Section 106(b) of the Bank Holding Company Act Amendments of 
1970 generally prohibits a bank from tying its own products, or tying 
its products to those of an affiliate. The Board's Regulation Y applies 
section 106 to bank holding companies and their nonbank subsidiaries as 
if they were banks.
In July 1994, the Board approved issuing for public comment a proposed 
rule to permit a bank holding company or its nonbank subsidiary to 
offer a discount on its products on condition that a customer obtain 
any other product from that company or subsidiary or from any of its 
nonbank affiliates (59 FR 39709, August 4, 1994). This exception would 
apply only when none of the packaged products are being offered by a 
bank. The proposal is not likely to have a significant economic impact 
on a substantial number of small entities.
Following review of the public comments, the Board is expected to take 
further action within the next three months.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  08/04/94                    59 FR 39709
Further Board action by         11/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Greg Baer, Managing Senior Counsel, Federal Reserve 
System, Legal Division, 202 452-3236

RIN: 7100-AB79
_______________________________________________________________________

5094. REGULATION: BB--COMMUNITY REINVESTMENT (DOCKET NUMBER: R-0822)

Legal Authority:  12 USC 321; 12 USC 325; 12 USC 1814; 12 USC 1816; 12 
USC 1828

CFR Citation:  12 CFR 228

Legal Deadline: None

Abstract: In December 1993, the Board and the other financial 
supervisory agencies proposed for public comment amendments to the 
regulations implementing the Community Reinvestment Act (CRA) (58 FR 
67465, December 21, 1993). The proposed regulations would replace the 
existing regulations. The purpose of the proposal is to develop more 
objective and enforceable regulatory requirements while reducing 
regulatory burden. To do this, the proposal calls for a new set of 
tests of banks' CRA-related performance based on their lending, 
services, and investments in low- and moderate-income communities. It 
would also require the collection of new data for larger banks but 
would provide for a streamlined assessment of the performance of 
smaller banks.
All insured depositories would be subject to the proposed regulation. 
It is the purpose of the proposal to reduce regulatory burden, 
particularly on smaller institutions, and it is not expected to have a 
significant economic impact on a substantial number of small banks. 
Following review of the public comments, the Board and the other 
agencies issued a (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  12/21/93                    58 FR 67465
Board requested public comment  10/07/94                    59 FR 51232

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: ABSTRACT CONT: revised proposal for comment. 
The Board is expected to take further action within the next three 
months.

Agency Contact: Glenn E. Loney, Associate Director, Federal Reserve 
System, Division of Consumer and Community Affairs, 202 452-3585

RIN: 7100-AB75
_______________________________________________________________________

5095.  REGULATION: DD--TRUTH IN SAVINGS (DOCKET NUMBER: R-0836)

Legal Authority:  12 USC 4301 et seq

CFR Citation:  12 CFR 230

Legal Deadline: None

Abstract: Sections 261 to 275 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 require depository institutions to 
provide a schedule of terms, rates, and fees for deposit accounts 
offered by the institution. The law also sets forth rules for 
advertisements for deposit accounts.
In the context of deliberations about its December 1993 proposal 
regarding calculation of the annual percentage yield (APY) (Docket 
Number: R-0812; RIN 7100-AB68), in May 1994, the Board approved issuing 
for public comment related amendments to Regulation DD (59 FR 24378, 
May 11, 1994). The amendments would affect institutions' compounding 
and crediting practices for interest-bearing accounts and would have 
the effect of producing an annual percentage yield that reflects the 
time value of money. In July, the Board extended the comment period for 
the May proposal (59 FR 35271, July 11, 1994). At the same time, the 
Board solicited comment on an alternative approach for calculating the 
APY. (The approach would allow institutions to disclose an APY equal to 
the interest rate on time accounts with maturities greater than one 
year and that do not compound (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested comment         05/11/94                    59 FR 24378
Board extended comment period   07/11/94                    59 FR 35271
Board is expected to take 
further action by               10/00/94

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: ABSTRACT CONT: interest but pay interest at 
least annually.) The economic impact on small institutions will depend 
upon the variety of deposit products offered, the extent of the 
disclosures, and the options for compliance offered by the final rule. 
Following review of the public comments, the Board is expected to take 
further action within the next two months.

Agency Contact: Leonard Chanin, Managing Counsel, Federal Reserve 
System, Division of Consumer and Community Affairs, 202 452-3667

RIN: 7100-AB80
_______________________________________________________________________

5096. FEDERAL RESERVE BANK SERVICES (DOCKET NUMBER: R-0817)

Legal Authority:  12 USC 248(i); 12 USC 248(j); 12 USC 248(o); 12 USC 
342; 12 USC 464

CFR Citation:  None

Legal Deadline: None

Abstract: In December 1993, the Board requested public comment on a 
proposal to expand the Fedwire funds transfer format and to adopt a 
more comprehensive set of data elements, to be implemented in late 1996 
(58 FR 63366, December 1, 1993). The proposal would improve payments 
system efficiency by reducing the need for manual intervention in 
transfer processing and posting and would minimize the truncation of 
information when payment orders are forwarded to Fedwire from other 
large-value transfer systems. The proposal also would permit inclusion 
of information on all parties to a transfer, as would be required under 
proposed Treasury regulations.
Although the proposal would affect all Fedwire users, the Board expects 
that only relatively large entities using in-house or vendor-supplied 
systems will need to make significant automation changes. The proposal 
should not have a significant economic impact on a substantial number 
of small entities. Small entities generally use software provided by 
the Federal Reserve and would likely experience increased costs only in 
the areas of training and back office interface. Following review 
(cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  12/01/93                    58 FR 63366
Further Board action by         12/00/94

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: of the public comments, the 
Board is expected to take further action by late 1994.

Agency Contact: Gayle Brett, Manager, Federal Reserve System, Division 
of Reserve Bank Operations and Payment Systems, 202 452-2934

RIN: 7100-AB71
_______________________________________________________________________

5097.  PROPOSED POLICY STATEMENT ON PRIVATELY OPERATED LARGE-
DOLLAR MULTILATERAL NETTING SYSTEMS (DOCKET NUMBER: R-0842)

Legal Authority:  12 USC 221 et seq

CFR Citation:  None

Legal Deadline: None

Abstract: In July 1994, the Board issued for public comment a proposed 
policy statement that would adopt minimum standards for privately 
operated large-dollar multilateral netting systems (59 FR 36438, July 
18, 1994). These standards (also known as the ``Lamfalussy minimum 
standards'') were set out in a 1990 report by the central banks of the 
Group of Ten countries and are intended to reduce risk in multilateral 
netting systems. The Board also requested comment on whether a higher 
standard with respect to assuring settlement should be applicable to 
systems that present a high degree of systemic risk. The proposed 
policy would be applicable to privately operated large-dollar 
multilateral netting systems only (and not to paper-based or ACH 
systems), and would not have a significant economic impact on a 
substantial number of small entities. Following review of the public 
comments, the Board is expected to take further action by year-end.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested comment         07/18/94                    59 FR 36438
Further Board action by         12/00/94

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Paul Bettge, Manager, Federal Reserve System, Division 
of Reserve Bank Operations and Payments System, 202 452-3174

RIN: 7100-AB81
_______________________________________________________________________

5098. RISK-BASED CAPITAL STANDARDS (DOCKET NUMBER: R-0802)

Legal Authority:  PL 102-242

CFR Citation:  12 CFR 208; 12 CFR 225

Legal Deadline:  Final, Statutory, June 19, 1993.

Abstract: Section 305 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (FDICIA) requires each Federal banking agency 
to revise its risk-based capital standards for the depository 
institutions it regulates in order to ensure that those standards take 
adequate account of interest rate risk (IRR), concentration of credit 
risk, and the risks of nontraditional activities. In March 1993, 
following a review of comments received from an advanced notice of 
proposed rulemaking issued in 1992, and after staff discussions with 
the other agencies, the Board approved for public comment a notice of 
proposed rulemaking for IRR (58 FR 48206, September 14, 1993). This 
proposal would allow institutions to use internal risk models to 
measure IRR (if the models are acceptable to examiners) and would 
require additional capital of institutions identified as having excess 
IRR. Also, in an effort to reduce the burden on small institutions, the 
proposal would exempt an estimated 8,000 institutions from any 
additional reporting. Following review of the public comments, the 
Board and the other banking agencies are expected to take further 
action within (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment 
on an ANPRM                     08/10/92                    57 FR 35507
Board approved requesting 
comment on proposed rulemaking  09/14/93                    58 FR 48206
Further Board action by         10/00/94

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: ABSTRACT CONT: the next two months. The Board 
also approved for comment, and on August 3, 1994, subsequently adopted, 
proposals revising risk-based capital standards to account for the 
risks posed by concentrations of credit and nontraditional activities 
(Docket Number R-0764). The adopted regulation provides for substantial 
flexibility in evaluating these risks. A final interagency rule is 
subject to the completion of each agency's approval process.

Agency Contact: James Embersit, Manager, Federal Reserve System, 
Division of Banking Supervision and Regulation, 202 452-5249

RIN: 7100-AB50
_______________________________________________________________________

5099. STANDARDS FOR SAFETY AND SOUNDNESS (DOCKET NUMBER: R-0766)

Legal Authority:  PL 102-242

CFR Citation:  12 CFR ch II

Legal Deadline:  Final, Statutory, August 1, 1993.

Abstract: Section 132 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (FDICIA) directs each Federal banking agency to 
prescribe standards regarding operations, management, asset quality, 
earnings, stock valuation (to the extent feasible), and employee 
compensation. In July 1992, the Board requested public comment on an 
interagency advance notice of proposed rulemaking (57 FR 31336, July 
15, 1992). After considering the public's comments, a notice of 
proposed rulemaking was developed that contains broad principle-based 
standards that leave the method for meeting such standards largely in 
the province of management. The proposed standards are specific enough 
to identify emerging safety and soundness problems and require 
submission of a compliance plan before those problems become serious; 
however, the standards do not specify each operational and managerial 
procedure an institution must have in place. The Board believes that 
well-managed institutions generally should not find it necessary to 
amend their operations in order to comply with the operational and 
managerial standards. (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  07/15/92                    57 FR 31336
Board issued notice of proposed 
rulemaking                      11/18/93                    58 FR 60802
Further Board action by         10/00/94

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: A draft notice of proposed 
rulemaking was approved by the Board in April 1993, and a similar 
version was approved by the Federal Deposit Insurance Corporation in 
early June. An interagency notice was published, after the Office of 
Thrift Supervision and the Office of the Comptroller of the Currency 
completed their approval processes (58 FR 60802, November 18, 1993). 
The proposal is not expected to impose a significant economic hardship 
on small institutions.
However, sections of legislation passed by the U.S. House and Senate in 
their Community Development Financial Institution Bills (HR 3474) would 
make amendments to certain sections of FDICIA, including the safety and 
soundness standards. The passage of a final bill is uncertain, but if 
passed into law may affect the nature and scope of the proposed 
regulations.
Following review of the public comments, the Board is expected to take 
further action in the fall.

Agency Contact: Roger T. Cole, Deputy Associate Director, Federal 
Reserve System, Division of Banking Supervision and Regulation, 202 
452-2618

RIN: 7100-AB52
_______________________________________________________________________

5100.  REGULATION: TEN PERCENT REVENUE LIMIT ON BANK-INELIGIBLE 
ACTIVITIES OF SUBSIDIARIES OF BANK HOLDING COMPANIES (DOCKET NUMBER: R-
0841)

Legal Authority:  12 USC 377

CFR Citation:  None

Legal Deadline: None

Abstract: Section 20 of the Glass-Steagall Act prohibits a member bank 
from being affiliated with a company that is ``engaged principally'' in 
underwriting and dealing in securities that a bank may not underwrite 
and deal in directly (``ineligible securities''). In July 1994, the 
Board issued for public comment a proposal to provide an alternative to 
the current indexed revenue test used to measure compliance with the 
``engaged principally'' standard (59 FR 35516, July 12, 1994). The 
current test limits to 10 percent revenue earned from ineligible 
securities activities relative to the total revenue of a bank holding 
company subsidiary engaged, to a limited extent, in underwriting and 
dealing in ineligible securities (``section 20 subsidiary''). Comments 
were solicited on whether asset values or sales volume data, or a 
combination of both measures should be used as a new alternative test. 
In 1993, the Board solicited comment on a proposed test based on asset 
values, then deferred a decision to adopt such a test. The current 
proposal would allow section 20 subsidiaries additional flexibility in 
the conduct of their securities operations, and arises due to the 
Board's increased experience in (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  07/12/94                    59 FR 35516
Further Board action by         10/00/94

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: reviewing and monitoring the 
activities and operations of these subsidiaries. The proposal would not 
have a significant economic impact on small entities nor on a 
substantial number of bank holding companies.
Following review of the public comments, the Board is expected to take 
further action within the next two months.

Agency Contact: Thomas Corsi, Senior Attorney, Federal Reserve System, 
Legal Division, 202 452-3275

RIN: 7100-AB82
_______________________________________________________________________

FEDERAL RESERVE SYSTEM (FRS)                          Completed Actions
  
  
_______________________________________________________________________
  
5101. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0803)

Legal Authority:  12 USC 3331 et seq

CFR Citation:  12 CFR 225, subpart G

Legal Deadline: None

Abstract: In June 1993, the Board and other Federal financial 
regulatory agencies issued for public comment proposed amendments to 
their real estate appraisal regulations that would: (1) increase the 
threshold level at or below which appraisals are not required from 
$100,000 to $250,000; (2) expand and clarify other existing exemptions 
to the appraisal regulations; and (3) identify additional exemptions. 
In addition, the proposal would amend or delete existing requirements 
governing appraisal standards and appraiser independence.
In November 1993, the agencies made available supplemental information 
on the proposed rule and extended the comment period for thirty days in 
order to allow commenters to consider and comment on the information 
(58 FR 59688, November 10, 1993). The supplemental information related 
primarily to the proposed increase in the threshold.
Previously, in November and December 1990, the Board had issued for 
public comment proposed amendments to the appraisal regulation to lower 
the threshold to conform to the level at that time of the other 
agencies (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested comment         11/26/90                    55 FR 49057
Board requested comment on a 
revised proposal                06/04/93                    58 FR 31878
Board adopted amendments        06/07/94                    59 FR 29481

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: ABSTRACT CONT: (55 FR 49057, November 26, 1990) 
and to adopt a final rule requiring compliance with the Uniform 
Standards of Professional Appraisal Practice (USPAP) (55 FR 53609, 
December 31, 1990; RIN 7100-AB27). As a result of the other agencies 
conforming their thresholds to the Board's level, the Board took no 
further action on the November 1990 proposed amendments.
In June 1994, following review of the public comments, the Board 
adopted the amendments to the real estate appraisal regulation 
substantially as proposed (59 FR 29481, June 7, 1994). As part of the 
rulemaking, the Board deleted appendix A to subpart G, part 225, which 
contained the specific provisions of USPAP. Instead, the agencies have 
decided to make general reference to USPAP as the generally accepted 
appraisal standards for appraisals under title XI of the Financial 
Institutions Reform, Recovery and Enforcement Act of 1989. The adoption 
of the amendments will have the effect of relieving perceived 
restrictions on regulated institutions and reducing regulatory burden 
for some small entities.

Agency Contact: Virginia Gibbs, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation, 202 
452-2521

RIN: 7100-AB20
_______________________________________________________________________

5102. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0773)

Legal Authority:  12 USC 248(i); 12 USC 1844(b)

CFR Citation:  12 CFR 208; 12 CFR 225; 12 CFR 265

Legal Deadline: None

Abstract: In August 1992, the Board approved several proposals to 
reduce burden that is associated with the process for seeking Board 
approval for a variety of transactions (57 FR 39641, September 1, 
1992). In particular, the Board agreed to: (1) establish certain 
procedures to limit extension of the pre-acceptance period for 
applications; (2) permit prospective applicants the opportunity to 
submit a pre-filing notice of intent to file an application; (3) 
eliminate the stock redemption notice requirement for bank holding 
companies that are and would remain well capitalized on a consolidated 
basis and in generally satisfactory condition following the redemption; 
(4) expand the authority of Reserve Banks to process all delegable 
applications without Board staff review; (5) modify the Board's 
delegation rules that pertain to competition and market concentration; 
(6) reduce redundant post-acceptance processing of Board action cases; 
and (7) increase monitoring of cases that require extended processing. 
In addition, the Board later determined to adopt a proposal to 
establish a general consent procedure for investments in bank premises 
by State member banks (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment  09/01/92                    57 FR 39641
Board implemented proposed 
regulatory burden reduction 
efforts                         08/17/94

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: (59 FR 28761, June 3, 1994). 
Section 24A of the Federal Reserve Act requires State member banks to 
obtain the Board's approval prior to making investments in bank 
premises that would result in the bank's aggregate level of investments 
in bank premises to exceed the bank's capital stock account.
Finally, the Board determined to invite public comment on any other 
ways in which the burdens on applicants under the current regulation 
may be reduced in a manner consistent with the Board's responsibilities 
under applicable law.
These proposals are part of the Board's ongoing efforts to reduce 
regulatory burdens on financial institutions regulated by the Board and 
should not have a significant economic impact on small entities. All 
regulatory amendments necessitated by the proposals adopted in 1992 
have now been implemented. Comments received are being considered in 
the context of ongoing regulatory reform.

Agency Contact: Terence F. Browne, Senior Attorney, Federal Reserve 
System, Legal Division, 202 452-3707

RIN: 7100-AB55
_______________________________________________________________________

5103. REGULATION: J--COLLECTION OF CHECKS AND OTHER ITEMS BY FEDERAL 
RESERVE BANKS AND FUNDS TRANSFERS THROUGH FEDWIRE (DOCKET NUMBER: R-0821)

Legal Authority:  12 USC 248(i); 12 USC 248(j); 12 USC 248(o); 12 USC 
342; 12 USC 360; 12 USC 464; 12 USC 4001 to 4010

CFR Citation:  12 CFR 210

Legal Deadline: None

Abstract: In December 1993, the Board approved issuing for public 
comment proposed amendments to Regulation J to conform the warranties 
and various other provisions of Regulation J to recent amendments to 
Regulation CC (Availability of Funds and Collection of Checks) and the 
Uniform Commercial Code. In April 1994, following review of the public 
comments, the Board adopted the amendments substantially as proposed 
(59 FR 22962, May 4, 1994). It is not expected that the proposed 
amendments will impose any substantial economic burden on small 
entities.

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board approved requesting 
comment                         12/28/93                    58 FR 68566
Board adopted amendments        05/04/94                    59 FR 22962

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Stephanie Martin, Senior Attorney, Federal Reserve 
System, Legal Division, 202 452-3198

RIN: 7100-AB66
_______________________________________________________________________

5104. REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBER: R-0832)

Legal Authority:  12 USC 1972(1)

CFR Citation:  12 CFR 225

Legal Deadline: None

Abstract: Section 106(b) of the Bank Holding Company Act Amendments of 
1970 generally prohibits banks from fixing or varying the consideration 
for a product or service on condition that the customer purchases 
another product or service offered by the bank or any of its 
affiliates. Section 106 provides an exemption to this tying prohibition 
if the customer also obtains a loan, discount, deposit, or trust 
service (``traditional bank products'') from that bank (but not an 
affiliate of that bank). The statute further provides that the Board 
may, by regulation or order, permit exceptions from the antitying 
prohibition where the Board determines that an exception will not be 
contrary to the purposes of the section. In March 1994, the Board 
issued for public comment an amendment to Regulation Y that would 
permit a bank holding company or bank or nonbank subsidiary thereof to 
offer a discount on a traditional bank product or on securities 
brokerage services on condition that a customer obtain a traditional 
bank product from an affiliate (59 FR 12202, March 16, 1994). In July 
1994, following review of the public comments, the Board adopted the 
proposal substantially as proposed (59 FR 39677, (cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested public comment 
by                              03/16/94                    59 FR 12202
Board adopted proposal          08/04/94                    59 FR 39677

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: August 4, 1994). The proposal 
will not have a significant economic impact on a substantial number of 
small entities that would be subject to the rule.
The Board also proposed another amendment that would permit a bank 
holding company or its nonbank subsidiary to offer a discount on its 
products or services on condition that a customer obtain any other 
product or service from that company or subsidiary, or from any of its 
nonbank affiliates (Docket Number: R-0843).

Agency Contact: Robert Frierson, Assistent General Counsel, Federal 
Reserve System, Legal Division, 202 452-3711

RIN: 7100-AB73
_______________________________________________________________________

5105. REGULATION: DD--TRUTH IN SAVINGS (DOCKET NUMBER: R-0812)

Legal Authority:  12 USC 4301 et seq

CFR Citation:  12 CFR 230

Legal Deadline: None

Abstract: Sections 261 to 275 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 require depository institutions to 
provide a schedule of terms, rates, and fees for deposit accounts 
offered by the institution. The law also sets forth rules for 
advertisements for deposit accounts.
In July 1993, the Board approved issuing for public comment proposed 
amendments to Regulation DD requiring institutions to use a new formula 
to calculate the annual percentage yield (APY) for accounts where 
consumers receive interest payments more frequently than interest is 
compounded. The proposal would also have affected the APY for accounts 
that do not compound interest but permit periodic interest payments. 
Following review of the public comments, and based on considerations of 
costs and regulatory burden, the Board withdrew the proposal (59 FR 
24376, May 11, 1994). In the context of deliberations about its 
proposal regarding the APY, the Board approved issuing for public 
comment related amendments to Regulation DD (Docket Number: R-0812; 59 
FR 24378, May 11, 1994). The amendments would affect institutions' 
(cont)

Timetable:
_________________________________________________________________________

Action                            Date                      FR Cite

_________________________________________________________________________

Board requested comment         12/06/93                    58 FR 64190
Board withdrew the proposal     05/11/94                    59 FR 24376

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: ABSTRACT CONT: compounding and crediting 
practices for interest-bearing accounts and would have the effect of 
producing an APY that reflects the time value of money.

Agency Contact: Leonard Chanin, Managing Counsel, Federal Reserve 
System, Division of Consumer and Community Affairs, 202 452-3667

RIN: 7100-AB68
[FR Doc. 94-21037 Filed 11-10-94; 8:45 am]
BILLING CODE 6210-01-F