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



[[Page 24001]]




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Part LVI



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 regulatory 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 April 1 through 
October 1, 1996. The next semiannual agenda will be published in 
October 1996.

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 April 1996 
agenda as part of the April 1996 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. Matters begun and completed between 
issues of the agenda have not been included.

    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                                              
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4309        Regulation: E--Electronic Fund Transfers..............................................    7100-AC06 
4310        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 
4311        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 
4312        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 
4313        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control..................    7100-AB87 
4314        Section 303 Regulatory Review.........................................................    7100-AC09 
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                                                Final Rule Stage                                                
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4315        Regulation: B--Equal Credit Opportunity (Docket Number: R-0876).......................    7100-AB99 
4316        Regulation: E--Electronic Fund Transfers (Docket Number: R-0830)......................    7100-AA77 
4317        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System               
            (Docket Number: R-0897)...............................................................    7100-AB86 
4318        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System               
            (Docket Number: R-0909)...............................................................    7100-AC07 
4319        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Numbers: R-                
            0884 and R-0886)......................................................................    7100-AC01 
4320        Regulation: K--International Banking Operations (Docket Number: R-0916)...............    7100-AB88 
4321        Regulation: K--International Banking Operations (Docket Number: R-0911)...............    7100-AB89 
4322        Regulation: L--Management Official Interlocks (Docket Number: R-0907).................    7100-AB90 
4323        Regulation: M--Consumer Leasing (Docket Number: R-0892)...............................    7100-AB74 
4324        Regulation: S--Reimbursement for Providing Financial Records; Recordkeeping                         
            Requirements for Certain Financial Records (Docket Number: R-0888)....................    7100-AC03 
4325        Regulation: S--Reimbursement for Providing Financial Records; Recordkeeping                         
            Requirements for Certain Financial Records (Docket Number: R-0906)....................    7100-AC10 
4326        Regulation: T--Credit by Brokers and Dealers (Docket Number: R-0772)..................    7100-AB28 
4327        Regulation: U--Credit by Banks for the Purpose of Purchasing or Carrying Margin Stocks              
            (Docket Number: R-0905)...............................................................    7100-AB65 

[[Page 24003]]

                                                                                                                
4328        Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-                 
            0868).................................................................................    7100-AB95 
4329        Regulation: DD--Truth in Savings (Docket Number: R-0836 and Docket Number: R-0869)....    7100-AB80 
4330        Federal Reserve Bank Book-Entry Securities Transfer Services (Docket Number: R-0866)..    7100-AB97 
4331        Federal Reserve Payments System Risk Policy (Docket Number: R-0889)...................    7100-AC04 
4332        Risk-Based Capital Standards: Interest Rate Risk (Docket Number: R-0802)..............    7100-AB50 
4333        Rules of Practice for Hearings (Docket Number: R-0878)................................    7100-AC05 
4334        Section 23A of the Federal Reserve Act (Docket Number: R-0902)........................    7100-AC08 
4335        Standards for Safety and Soundness (Docket Number: R-0766)............................    7100-AB52 
4336        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   
----------------------------------------------------------------------------------------------------------------
4337        Reg.: H--Membership of State Banking Institutions in F.R.S.; Reg.: K--International                 
            Banking Operations; and Reg.: Y--Bank Holding Companies and Change in Bank Control                  
            (Docket No.:R-0885)...................................................................    7100-AC00 
4338        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-             
            0849).................................................................................    7100-AB92 
4339        Regulation: K--International Banking Operations (Docket Number: R-0754)...............    7100-AB31 
4340        Regulation: K--International Banking Operations (Docket Number: R-0862)...............    7100-AB58 
4341        Regulation: K--International Banking Operations (Docket Number: R-0896)...............    7100-AC02 
4342        Regulation: L--Management Official Interlocks (Docket Number: R-0825).................    7100-AB72 
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FEDERAL RESERVE SYSTEM (FRS)                        Proposed Rule Stage


  



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4309.  REGULATION: E--ELECTRONIC FUND TRANSFERS

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1693 et seq

CFR Citation:  12 CFR 205

Legal Deadline: None

Abstract: In 1994, the Board issued a proposed comprehensive revision 
to Regulation E under the Board's Regulatory Planning and Review 
Program (Docket Number: R-0830; RIN: 7100-AA77). In the proposal, the 
Board also requested comment on whether Regulation E should apply to 
stored-value cards. Stored-value cards (also known as prepaid cards) 
maintain, typically in a computer chip or magnetic strip, a ``stored 
value'' of funds available to the cardholder. The balance recorded on 
the card is debited at a merchant's terminal when the cardholder makes 
a purchase. Many persons commenting on the 1994 proposal asked the 
Board to consider proposing an exemption from Regulation E, or 
modifications in regulatory requirements under Regulation E, for 
stored-value cards and other stored-value devices.
In the 1994 proposed revision, the Board also requested comment on a 
proposed amendment that would permit electronic debits to an account to 
be authorized in electronic form, such as by personal computer and 
modem. Commenters asked the Board to consider proposing to permit 
electronic communications to substitute generally for oral or written 
communications required under Regulation E.
Finally, commenters on the 1994 proposal requested that the Board 
consider proposing extension of the error resolution time limits under 
Regulation E for new accounts to avoid the possibility of fraud.
Within the next two months, the Board will consider issuing for public 
comment a proposal on these subjects. The proposal is part of the 
Board's overall review of its regulations as required by section 303 of 
the Riegle Community Development and Regulatory Improvement Act of 
1994. It is not expected that any proposed amendment would have a 
significant economic impact on small institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board is expected to consider a 
proposal within the next two 
months                          04/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AC06
_______________________________________________________________________

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4310. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL

Priority:  Substantive, Nonsignificant

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 applied to all FDIC-insured banks and thrifts. The FDIC's 
regulation applied these requirements to depository institutions with 
total assets of $500 million or more. Subsequently in February 1996, 
the FDIC approved amendments to its rules implementing section 112 that 
were largely required by the Riegle Community Development and 
Regulatory Improvement Act of 1994. These amendments expand 
opportunities for holding companies to file a single report covering 
multiple subsidiary banking organizations, conform the rule's 
references to the Federal Reserve's Regulation O, and make other 
technical revisions.
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 develop a notice of 
proposed rulemaking for public comment by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board may consider amendments to 
Regulations H and Y by          12/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB39
_______________________________________________________________________




4311. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL

Priority:  Substantive, Nonsignificant

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 (FDICIA). 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) 
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 May 9, 1994, and the FFIEC 
included new information about market values of derivative instruments 
in its Call Report requirements for March 1995. Market value 
information about on- and off-balance-sheet financial instruments is 
also reported in the banks' annual financial statements filed with the 
Board and the other Federal banking agencies pursuant to FDICIA section 
112. Following final action by the FFIEC, the Board may consider 
requesting public comment by year-end on changes to its regulations in 
order to implement certain aspects of section 121.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board may consider amendments to 
Regulations H and Y by          12/00/96

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AB41
_______________________________________________________________________




4312. 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)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 
to 338; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 
611; 12 USC 1814; 12 USC 1817(j)(13); 12 USC 1818; 12 USC 1823(j); 12 
USC 1828(o); 12 USC 1831i

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

Legal Deadline: None

Abstract: In May 1994, the Board issued for public comment two 
proposals on the capital treatment of recourse arrangements and direct 
credit substitutes. The first 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

[[Page 24005]]

same risk-based capital charge for first loss direct credit substitutes 
as is currently applied to recourse transactions (59 FR 27115, May 25, 
1994).
Subsequent to the issuance of this proposal, the Congress mandated, 
under section 350 of the Riegle Community Development and Regulatory 
Improvement Act of 1994, that the Board issue regulations limiting, as 
of March 22, 1995, the amount of risk-based capital an insured 
depository institution is required to hold for assets transferred with 
recourse to the maximum amount of recourse for which the institution is 
contractually liable. The portion of the Board's proposal dealing with 
low-level recourse transactions satisfies the minimum requirements of 
section 350, and, accordingly, in February 1995, the Board adopted that 
portion of the proposal (60 FR 8177, February 13, 1995).
The second proposal, an advance notice of proposed rulemaking, sought 
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. The Board will continue to consider the 
advanced notice of proposed rulemaking, as well as the outstanding 
issues addressed in the first proposal, and is expected to take further 
action within the next four months. Small entities would be affected by 
the final rule and the two proposals only to the extent that they 
engage in extending recourse arrangements or direct credit substitutes; 
it is not expected that the proposals will have a significant economic 
impact.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/25/94                    59 FR 27115
Board adopted one aspect of the 
proposal                        02/13/95                     60 FR 8177
Further Board action within the 
next four months                06/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB77
_______________________________________________________________________




4313. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 321; 12 USC 1828; 12 USC 1831u; 12 
USC 1842

CFR Citation:  12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: Sections 101, 102, and 103 of the Riegle-Neal Interstate 
Banking and Branching Efficiency Act of 1994 establish conditions under 
which bank holding companies and national banks will be permitted to 
engage in interstate banking and branching through acquisitions, 
mergers, and establishment of de novo branches. Under section 9 of the 
Federal Reserve Act, the limitations and conditions on branching by 
national banks also are applicable to State member banks. Section 101 
of the Riegle-Neal Act also permits a bank to receive deposits and 
provide certain other services as agent for any affiliated depository 
institution without the bank being considered to be a branch of the 
affiliated depository institution.
The Board is considering whether it is necessary to amend its 
Regulations H and Y to reflect the statutory changes. If amendments are 
necessary, they will be proposed as part of any proposals concerning 
Regulations H and Y following the Board's overall review of these rules 
under section 303 of the Riegle Community Development and Regulatory 
Improvement Act of 1994.
The statutory changes reduce restrictions currently applicable to bank 
holding companies and state member banks of all sizes, including small 
institutions, and will not significantly increase regulatory burden on 
small banks.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board is expected to act on 
Regulation H by                 10/00/96
Board is expected to act on 
Regulation Y by                 10/00/96

Small Entities Affected: Undetermined

Government Levels Affected: None

Agency Contact: Lawranne Stewart, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-3513

RIN: 7100-AB87
_______________________________________________________________________




4314.  SECTION 303 REGULATORY REVIEW

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 4803(a)(1)

CFR Citation:  12 CFR ch II

Legal Deadline:  Other, Statutory, September 23, 1996.
Progress Report due to Congress.

Abstract: In response to the requirements of section 303 of the Riegle 
Community Development and Regulatory Improvement Act of 1994, the Board 
is reviewing its regulations for purposes of streamlining, improving 
efficiency, reducing unnecessary costs, and removing inconsistencies 
and outmoded/duplicative requirements. The Board is also working 
jointly with the other banking agencies to make uniform regulations and 
guidelines implementing common statutory and supervisory policies. A 
regulatory review timetable was published in the Federal Register in 
October 1995 (60 FR 53546, October 16, 1995).
Within the next six months, it is expected that the Board will seek 
public comment during the course of the reviews of the following 
regulations/policy statements/other regulatory guidance. Reviews 
already put out for public comment appear elsewhere in the Agenda.
Reg. D, Reserve Requirements of Depository Institutions.
Reg. G, Securities Credit by Persons Other Than Banks, Brokers, or 
Dealers.
Reg. O, Loans to Executive Officers, Directors, and Principal 
Shareholders of Member Banks.
Reg. R, Relationships with Dealers in Securities Under Section 32 of 
the Banking Act of 1933.
Reg. AA, Unfair or Deceptive Acts or Practices.

[[Page 24006]]


Reg. Y, Bank Holding Companies and Change in Bank Control.
Reg. X, Borrowers of Securities Credit.
Reg. CC, Availability of Funds and Collection of Checks.
Reg. H, Membership of State Banking Institutions in the Federal Reserve 
System.
Regs. H and Y, Appendices, Capital Adequacy Guidelines.
Reg. K, International Banking Operations (Overall Comprehensive 
Review).
Reg. B, Equal Credit Opportunity.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board action expected during the 
next six months                 10/00/96

Small Entities Affected: Undetermined

Government Levels Affected: None

Agency Contact: Thomas A. Durkin, Regulatory Planning and Review 
Director, Federal Reserve System, Office of the Secretary
Phone: 202 452-3236

RIN: 7100-AC09
_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                           Final Rule Stage


  



_______________________________________________________________________




4315. REGULATION: B--EQUAL CREDIT OPPORTUNITY (DOCKET NUMBER: R-0876)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1691

CFR Citation:  12 CFR 202

Legal Deadline: None

Abstract: In April 1995, the Board issued for public comment a proposed 
amendment to Regulation B to eliminate the general prohibition on 
collecting data relating to an applicant's race, color, sex, religion, 
and national origin, giving creditors the option to ask applicants to 
provide the information on a voluntary basis (60 FR 20436, April 26, 
1995). This amendment would allow data collection only; creditors still 
would be prohibited from considering an applicant's race, color, sex, 
religion, and national origin in their credit decisions.
Compliance with the proposed amendment is voluntary and would not be 
expected to have a significant economic impact on small institutions. 
Following review of the public comments, the Board is expected to take 
further action within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         04/26/95                    60 FR 20436
Further Board action by         04/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Sheilah Goodman, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-3667

RIN: 7100-AB99
_______________________________________________________________________




4316. REGULATION: E--ELECTRONIC FUND TRANSFERS (DOCKET NUMBER: R-0830)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1693b

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 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. The proposals also are considered a part of the 
Board's overall review of its regulations as required by section 303 of 
the Riegle Community Development and Regulatory Improvement Act of 
1994. Following review of the public comments, the Board is expected to 
take further action within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board approved requesting public 
comment                         03/07/94                    59 FR 10684
Further Board action by         04/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AA77
_______________________________________________________________________




4317. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-0897)

Priority:  Substantive, Nonsignificant

Legal Authority:  42 USC 4001 et seq

CFR Citation:  12 CFR 208

Legal Deadline: None

Abstract: The National Flood Insurance Reform Act of 1994 (title V of 
the Riegle Community Development and

[[Page 24007]]

Regulatory Improvement Act of 1994) includes a number of amendments to 
the Flood Disaster Protection Act of 1973. The amendments are intended 
to improve compliance with existing flood insurance purchase 
requirements, including provisions concerning forced placement of 
policies, escrowing of insurance premiums, standard determination 
forms, notification requirements, penalties for noncompliance, and 
compliance examination requirements. All State member banks, including 
small institutions, will be subject to the amended provisions.
Under the statute, the Federal banking agencies are to consult and 
coordinate on the development of implementing regulations through the 
Federal Financial Institutions Examination Council.
In October 1995, the Board issued for public comment a proposed rule 
developed jointly by the banking agencies to implement the provisions 
of the statute concerning flood insurance purchase, escrow of flood 
insurance premiums, and notification requirements (60 FR 53962, October 
18, 1995). The proposal is part of the Board's overall review of its 
regulations as required by section 303 of the Riegle Community 
Development and Regulatory Improvement Act of 1994. Following review of 
the public comments the Board is expected to take further action within 
the next four months. The proposed rule is not expected to have a 
significant economic impact on small institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         10/18/95                    60 FR 53962
Further Board action by         06/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Lawranne Stewart, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-3513

RIN: 7100-AB86
_______________________________________________________________________




4318.  REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS 
IN THE FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-0909)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321-
338a; 12 USC 371d; 12 USC 461; 12 USC 481-486; 12 USC 601; 12 USC 611; 
12 USC 1814; 12 USC 1823(j); 12 USC 1828(o); 12 USC 1831o; 12 USC 
1831p-1; 12 USC 3105; ...

CFR Citation:  12 CFR 208

Legal Deadline: None

Abstract: In December 1995, the Board issued for public comment 
proposed amendments to Regulation H pertaining to the recordkeeping and 
confirmation disclosures for certain securities transactions effected 
by State member banks (60 FR 66759, December 26, 1995). These 
disclosures cover transactions effected for customers involving debt 
and asset-backed securities and generally require three-day settlement 
for these transactions.
It is not expected that the revisions will have a significant economic 
impact on a substantial number of small institutions. Following review 
of the public comments, the Board is expected to take further action 
within the next three months. The proposal is part of the Board's 
overall review of its regulations as required by section 303 of the 
Riegle Community Development and Regulatory Improvement Act of 1994.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/26/95                    60 FR 66759
Further Board action expected by05/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Susan S. Meyers, Senior Securities Regulation Analyst, 
Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-2781

RIN: 7100-AC07
_______________________________________________________________________




4319. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE 
IN BANK CONTROL (DOCKET NUMBERS: R-0884 AND R-0886)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 
to 338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 
611; 12 USC 1814; 12 USC 1823(j); 12 USC 1828(o); 12 USC 1831o; 12 USC 
1831p-1; 12 USC 3105; ...

CFR Citation:  12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In July 1995, the Board published for comment proposed 
amendments to its risk-based capital guidelines for State member banks 
and bank holding companies (60 FR 38081, July 25, 1995; Docket No. R-
0884). The proposed amendments would incorporate a measure for market 
risk in foreign exchange and commodity activities and in the trading of 
debt and equity instruments. Institutions would calculate market risk 
capital charges using either their own internal models or techniques 
developed by supervisors. The amendments are consistent with proposed 
international market risk standards and with similar standards being 
developed by the other Federal bank regulatory agencies.
The Board also requested comment on an alternative ``pre-commitment'' 
approach for setting market risk capital requirements (60 FR 38142, 
July 25, 1995; Docket No. R-0886). Under this approach, an institution 
would specify the amount of capital it chose to allocate to support 
market risk over a specified period of time. The Board could provide 
incentives for institutions to allocate sufficient market risk capital 
by methods such as public disclosure of market risk capital levels or 
penalties when losses exceed allocated capital.
The market risk capital proposals would affect only institutions with 
relatively large trading activities and therefore would have little or 
no effect on small entities. Following review of the public comments, 
the Board is expected to take further action within the next two 
months.

[[Page 24008]]

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment on R-
0884                            07/25/95                    60 FR 38081
Board requested comment on R-
0886                            07/25/95                    60 FR 38142
Further Board action by         04/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: James Houpt, Assistant Director, Federal Reserve 
System, Division of Banking Supervision and Regulation
Phone: 202 452-3358

RIN: 7100-AC01
_______________________________________________________________________




4320. REGULATION: K--INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-
0916)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 3105(k)

CFR Citation:  12 CFR 211

Legal Deadline: None

Abstract: In February 1996, the Board approved issuing for public 
comment a proposed amendment to Regulation K to implement the provision 
of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 
1994 that amended the International Banking Act of 1978 by adding a new 
subsection regarding the management of shell branches (61 FR 6956, 
February 23, 1996). The relevant subsection prohibits foreign banks 
from using their U.S. branches or agencies to manage types of 
activities through offshore shell branches that could not be managed by 
a U.S. bank at its foreign branches or subsidiaries.
It is not anticipated that the proposal will have a significant 
economic impact on a substantial number of small entities subject to 
the Board's regulation. Following review of the public comments, the 
Board is expected to take further action within the next six months. 
The proposal is part of the Board's overall review of its regulations 
as required by section 303 of the Riegle Community Development and 
Regulatory Improvement Act of 1994.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         02/23/96                     61 FR 6956
Further Board action by         10/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Janet Crossen, Senior Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-3281

RIN: 7100-AB88
_______________________________________________________________________




4321. REGULATION: K--INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-
0911)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1841 et seq; 12 USC 3101 et seq

CFR Citation:  12 CFR 211

Legal Deadline: None

Abstract: The Riegle-Neal Interstate Banking and Branching Act of 1994 
(the Interstate Act) contains provisions affecting foreign banks with 
U.S. operations, including, among other matters, interstate banking and 
branching and the selection of home states by foreign banks. In 
December 1995, the Board issued for public comment proposed rules 
concerning home state selection, removing certain outdated restrictions 
and making other changes needed to implement these statutory changes 
(60 FR 67100, December 28, 1995). Further, the Board requested comment 
on other issues raised for foreign banks under the Interstate Act. The 
proposals are part of the Board's overall review of its regulations as 
required by section 303 of the Riegle Community Development and 
Regulatory Improvement Act of 1994.
It is not expected that the proposals will 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 comment         12/28/95                    60 FR 67100
Further action by               06/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Douglas M. Ely, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-5289

RIN: 7100-AB89
_______________________________________________________________________




4322. REGULATION: L--MANAGEMENT OFFICIAL INTERLOCKS (DOCKET NUMBER: R-
0907)

Priority:  Substantive, Nonsignificant

Legal Authority:  PL 103-325

CFR Citation:  12 CFR 212

Legal Deadline: None

Abstract: Regulation L implements provisions of the Depository 
Institutions Management Interlocks Act (DIMIA), which regulates 
management interlocks among depository institutions. Section 338 of the 
Riegle Community Development and Regulatory Improvement Act of 1994 
(CDRI Act) amended certain sections of DIMIA. In December 1995, the 
Board, along with the Office of the Comptroller of the Currency, 
Federal Deposit Insurance Corporation, and Office of Thrift 
Supervision, issued for public comment a joint proposed rule (60 FR 
67424, December 29, 1995); the National Credit Union Association is 
expected to issue an identical proposal later this year. The proposed 
rule revises each agency's regulation implementing DIMIA to conform 
with the statutory changes set forth in section 338 and, in order to 
comply with section 303 of the CDRI Act, streamlines and modifies the 
regulations to improve efficiency, reduce unnecessary costs, and 
eliminate unwarranted constraints on credit availability.
Following review of the public comments, it is expected that the Board, 
with the other regulatory agencies, will take further action by mid-
year. It is not anticipated that the proposal will have a significant 
impact on a substantial number of small institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/29/95                    60 FR 67424
Further Board action expected by06/00/96

Small Entities Affected: None

Government Levels Affected: None

[[Page 24009]]

Agency Contact: Tina Woo, Staff Attorney, Federal Reserve System, Legal 
Division
Phone: 202 452-3890

RIN: 7100-AB90
_______________________________________________________________________




4323. REGULATION: M--CONSUMER LEASING (DOCKET NUMBER: R-0892)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1604

CFR Citation:  12 CFR 213

Legal Deadline: None

Abstract: The Board is undertaking 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, in 
November 1993, the Board 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. In August 1995, 
following review of the comments, the Board approved the issuance of a 
proposed rule revising Regulation M (60 FR 48752, September 20, 1995). 
The Riegle Community Development and Regulatory Improvement Act (CDRI 
Act) amendment to the Consumer Leasing Act to allow an alternative 
disclosure scheme for radio advertisements is a part of the proposal. 
The proposed rulemaking is included in the Board's overall review of 
its regulations as required by section 303 of the CDRI Act.
It is not anticipated that the proposed revisions will have s 
significant economic impact on a substantial number of small entities. 
Following review of the public comments, the Board is expected to take 
further action with the next three months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board approved requesting 
comment                         11/19/93                    58 FR 61035
Board approved issuance of a 
proposed rule                   09/20/95                    60 FR 48752
Further Board action within the 
next three months               05/00/96
Comment period extended until 
02/15/96                        12/06/96                    60 FR 62349

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB74
_______________________________________________________________________




4324. REGULATION: S--REIMBURSEMENT FOR PROVIDING FINANCIAL RECORDS; 
RECORDKEEPING REQUIREMENTS FOR CERTAIN FINANCIAL RECORDS (DOCKET NUMBER: 
R-0888)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1829b; 12 USC 1951 to 1959; 31 USC 5311 to 
5330

CFR Citation:  12 CFR 219; 12 CFR 103.33

Legal Deadline: None

Abstract: In January 1995, the Department of the Treasury and the Board 
jointly adopted a final rule that requires enhanced recordkeeping 
related to certain funds transfers and transmittals of funds by 
financial institutions (the joint rule). Also in January 1995, the 
Treasury adopted a companion rule, known as the travel rule, that 
requires financial institutions to include in transmittal orders 
certain information that must be maintained under the joint rule. The 
joint rule sets forth definitions of terms used in both rules. The 
original effective date of these rules was January 1, 1996. Subsequent 
to adoption of these rules, several banks have expressed concerns that 
compliance with the joint rule and the travel rule would be complicated 
if the parties to an international transfer were defined differently in 
the Bank Secrecy Act regulations than they are defined in the Uniform 
Commercial Code Article 4A. In response to these concerns, in August 
1995, the Board approved issuing for public comment proposed amendments 
to the joint rule's definitions and technical conforming changes to the 
substantive provisions to conform the meanings of the definitions of 
the parties to an international transfer to their meanings under 
Article 4A of the Uniform Commercial Code (60 FR 44144, August 24, 
1995).
The proposed amendments are intended to reduce confusion of banks and 
nonbank financial institutions (including small institutions) as to the 
applicability of the joint rule and the travel rule and to reduce the 
cost of complying with the rules' requirements. Due to the 
uncertainties resulting from these proposed amendments, the Treasury 
and the Board have deferred the effective date of the joint rule until 
April 1, 1996.
Following review of the public comments, the Board is expected to take 
final action within the next two months. It is not anticipated that the 
proposal will have a significant adverse economic impact on small 
institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/24/95                    60 FR 44144
Final Board action by           04/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AC03
_______________________________________________________________________




4325.  REGULATION: S--REIMBURSEMENT FOR PROVIDING FINANCIAL 
RECORDS; RECORDKEEPING REQUIREMENTS FOR CERTAIN FINANCIAL RECORDS 
(DOCKET NUMBER: R-0906)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 3415

CFR Citation:  12 CFR 219

Legal Deadline: None

Abstract: In December 1995, the Board requested public comment on a 
revision to subpart A of Regulation S, which implements the requirement 
under the Right to Financial Privacy Act (RFPA) that the Board 
establish the rates and conditions under which payment shall be made by 
a government authority to a financial institution for providing 
financial records pursuant to RFPA (60 FR 65599, December 20, 1995). 
The

[[Page 24010]]

proposed amendments update the fees to be charged and reflect statutory 
changes in the exemptions. Also, as part of the overall review of its 
regulations as required by section 303 of the Riegle Community 
Development and Regulatory Improvement Act of 1994, the Board has 
streamlined the regulation by eliminating unnecessary provisions.
Following review of the public comments, the Board is expected to take 
further action within the next two months. It is not anticipated that 
the proposal will have a significant adverse economic impact on small 
institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/20/95                    60 FR 65599
Further Board action by         04/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Elaine M. Boutilier, Senior Counsel, Federal Reserve 
System, Legal Division
Phone: 202 452-2418

RIN: 7100-AC10
_______________________________________________________________________




4326. REGULATION: T--CREDIT BY BROKERS AND DEALERS (DOCKET NUMBER: R-
0772)

Priority:  Substantive, Nonsignificant

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; RIN 7100-AB78). Those amendments were adopted in October 
1994.
In June 1995, the Board proposed additional amendments that further 
reflect the comments submitted in response to the Board's Advance 
Notice of Proposed Rulemaking (60 FR 33673, June 29, 1995).
Many of the proposed amendments feature increased reliance on rules of 
the Securities and Exchange Commission and self-regulatory 
organizations. Others would make Regulation T consistent with 
Regulations G and U, the regulations covering securities credit by 
lenders other than broker-dealers. 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 two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board issued advance notice and 
request for comment             08/18/92                    57 FR 37109
Board requested comment on 
amendments                      06/29/95                    60 FR 33763
Further Board action by         04/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Scott J. Holz, Senior Attorney, Federal Reserve System, 
Division of Banking Supervision and Regulation
Phone: 202 452-2781

RIN: 7100-AB28
_______________________________________________________________________




4327. REGULATION: U--CREDIT BY BANKS FOR THE PURPOSE OF PURCHASING OR 
CARRYING MARGIN STOCKS (DOCKET NUMBER: R-0905)

Priority:  Substantive, Nonsignificant

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: The Board is conducting a periodic review of Regulation U, 
which generally regulates bank extensions of credit that are secured by 
publicly traded stock. In December 1995, the Board proposed amendments 
for public comment that would (1) reduce the regulatory burden 
associated with loans secured by margin stock and other collateral and 
(2) clarify the circumstances under which a bank may finance the 
purchase of customer securities bought on a cash basis at a broker-
dealer (60 FR 63660, December 12, 1995). Comment was also invited on 
all other areas of the regulation. The proposals also satisfy 
requirements under section 303 of the Riegle Community Development and 
Regulatory Improvement Act of 1994. 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. Following 
review of the public comments, the Board is expected to take further 
action within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/12/95                    60 FR 63660
Further Board action by         04/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Scott J. Holz, Senior Attorney, Federal Reserve System, 
Division of Banking Supervision and Regulation
Phone: 202 452-2781

RIN: 7100-AB65
_______________________________________________________________________




4328. REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBER: R-0868)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1817(j)(13); 12 USC 1818; 12 USC 1831(i); 12 
USC 1843(c)(8); 12 USC 1844(b); 12 USC 3106; 12 USC 3108; 12 USC 3907; 
12 USC 3909; 12 USC 3310; 12 USC 3331 to 3351

CFR Citation:  12 CFR 225.125(g)

Legal Deadline: None

Abstract: Section 225.25(b)(4) of the Board's Regulation Y authorizes 
bank holding companies to act as investment adviser to registered 
investment companies. Bank holding companies that provide such services 
are subject to certain restrictions set forth in the Board's 
interpretation regarding investment adviser activities. In December 
1994, the Board approved

[[Page 24011]]

issuing for public comment a proposal to amend the limitations in the 
investment adviser interpretation to permit bank holding companies that 
advise an investment company to purchase, in a fiduciary capacity, 
securities of the investment company if the purchase is specifically 
authorized by the terms of the instrument creating the fiduciary 
relationship, by court order, or by the law of the jurisdiction under 
which the trust is administered (59 FR 67654, December 30, 1994).
It is not anticipated that amending the investment adviser 
interpretation will have a significant impact on a substantial number 
of small institutions as it will relax an existing restriction. 
Following review of the public comments, the Board is expected to take 
final action within the next six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/30/94                    59 FR 67654
Further Board action by         10/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB95
_______________________________________________________________________




4329. REGULATION: DD--TRUTH IN SAVINGS (DOCKET NUMBER: R-0836 AND DOCKET 
NUMBER: R-0869)

Priority:  Substantive, Nonsignificant

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 January 1995, the Board issued for public comment proposed 
amendments to Regulation DD that would produce an annual percentage 
yield (APY) that reflects the timing of interest payments as well as 
the timing of compounding. The proposal also solicits comment on an 
alternative method of calculating the APY (an internal rate of return 
formula) (60 FR 5142, January 26, 1995). The January 1995 proposal is 
an outgrowth of a May 1994 proposal that would have affected 
institutions' compounding and crediting practices in addition to 
changing the APY (59 FR 24378, May 11, 1994). The Board also adopted in 
January 1995 an interim rule that permits institutions and deposit 
brokers advertising noncompounding multiyear time accounts that require 
interest payouts at least annually to disclose an APY equal to the 
interest rate (60 FR 5128, January 26, 1995; Docket No. R-0836). Public 
comment on the approach was solicited in a July 1994 notice extending 
the comment period for the May 1994 proposal (59 FR 35271, July 11, 
1994). 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.
The Congress is considering legislation that would require substantial 
revisions to Regulation DD, including eliminating the APY. Further 
action by the Board is deferred, pending action by the Congress on 
Truth in Savings legislation.

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 adopted an interim rule   01/26/95                     60 FR 5128
Board requested further comment 01/26/95                     60 FR 5142
Further Board action following 
any Congressional action        12/00/96

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Jane Ahrens, Senior Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-3667

RIN: 7100-AB80
_______________________________________________________________________




4330. FEDERAL RESERVE BANK BOOK-ENTRY SECURITIES TRANSFER SERVICES 
(DOCKET NUMBER: R-0866)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 221 et seq

CFR Citation:  None

Legal Deadline: None

Abstract: In January 1995, the Board requested public comment on the 
effects of opening the Fedwire on-line book-entry securities transfer 
service earlier in the day, on new service capabilities related to 
earlier opening, and on establishment of a firm closing time for the 
service (60 FR 123, January 3, 1995). An earlier opening time could 
benefit the financial markets by facilitating international 
transactions, providing increased liquidity, and reducing risk. 
Participation in the proposed early-hour service would be voluntary; 
therefore, the service should not have a significant economic effect on 
a substantial number of small entities.
In August 1995, following review of the public comments, the Board 
adopted a firm closing time of 3:15 p.m. (ET) for transfer originations 
and 3:30 p.m. (ET) for reversals, effective January 2, 1996 (60 FR 
42410, August 15, 1995).
Following further review of the public comments, the Board is expected 
to take further action regarding earlier opening and new service 
capabilities by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/03/95                      60 FR 123
Board adopted firm closing time 08/15/95                    60 FR 42410
Further Board action by         12/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Lisa Hoskins, Project Leader, Federal Reserve System, 
Division of Reserve Bank Operations and Payment Systems
Phone: 202 452-3437

RIN: 7100-AB97
_______________________________________________________________________




4331. FEDERAL RESERVE PAYMENTS SYSTEM RISK POLICY (DOCKET NUMBER: R-
0889)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 221 et seq

[[Page 24012]]

CFR Citation:  None

Legal Deadline: None

Abstract: In August 1995, the Board requested public comment on a 
policy to control access to Federal Reserve Bank automated clearing 
house (ACH) services by entities other than the depository institutions 
whose Federal Reserve accounts will be debited (60 FR 42413, August 15, 
1995). The proposed policy is intended to help ensure the safety and 
soundness of the ACH system.
The proposed policy could have a significant economic impact on a 
substantial number of small depository institutions that use Federal 
Reserve ACH services or third-party ACH service providers. The proposal 
would require those institutions to originate ACH credit transfers, set 
credit limits for those customers, and transmit those limits to a 
monitoring facility operated by either the Federal Reserve or the 
third-party service provider. 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 comment         08/15/95                    60 FR 42413
Further Board action by         06/00/96

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Scott E. Knudson, Senior Financial Services Analyst, 
Federal Reserve System, Division of Reserve Bank Operations and Payment 
Systems
Phone: 202 452-3959

RIN: 7100-AC04
_______________________________________________________________________




4332. RISK-BASED CAPITAL STANDARDS: INTEREST RATE RISK (DOCKET NUMBER: 
R-0802)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 
to 338; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 611; 12 USC 
1814; 12 USC 1823(j); 12 USC 3105; 12 USC 3310; 12 USC 3331 to 3351; 12 
USC 3906 to 3909; 15 USC 78(b)

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 advance 
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. In September 1994, the 
Riegle Community Development and Regulatory Improvement Act of 1994 
amended section 305 of FDICIA by adding a new subparagraph instructing 
the banking agencies to ``take into account the size and activities of 
the institutions and do not cause undue reporting burdens.'' Following 
review of the public comments and the recently enacted legislation, the 
Board approved a final rule in June 1995 amending its risk-based 
capital standards to consider explicitly ``a bank's exposure to 
declines in the economic value of its capital due to changes in 
interest rates'' when evaluating capital adequacy (60 FR 39490, August 
2, 1995). It is not expected that the rule will have a significant 
economic impact on small institutions.
Also in June 1995, the Board approved requesting public comment on a 
proposed Joint Agency Policy Statement regarding the measurement and 
assessment of interest rate risk (60 FR 39495, August 2, 1995). The 
proposed Policy Statement describes a measurement framework comprised 
of exemption screens, a supervisory model, and use of a bank's own 
internal model.
Small banks would be exempted from the proposed Policy Statement and 
associated reporting requirements in order to lessen regulatory burden 
on small, well-managed banks.
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 
on an ANPRM                     08/10/92                    57 FR 35507
Board approved requesting 
comment on proposed rulemaking  09/14/93                    58 FR 48206
Board approved final rule 
implementing section 305        08/02/95                    60 FR 39490
Board approved requesting 
comment on proposed Joint Agency 
Policy Statement                08/02/95                    60 FR 39495
Further Board action by         10/00/96

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AB50
_______________________________________________________________________




4333. RULES OF PRACTICE FOR HEARINGS (DOCKET NUMBER: R-0878)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 554 to 557; 12 USC 248; 12 USC 1817(j); 12 USC 
1818; 12 USC 1847

CFR Citation:  12 CFR 263, subpart A

Legal Deadline: None

Abstract: Section 916 of the Financial Institutions Reform, Recovery 
and Enforcement Act of 1989 required the Federal financial institutions 
regulatory agencies to develop uniform rules and procedures for 
administrative hearings. The agencies each adopted final Uniform Rules 
in August 1991. Based on their experience since then, the agencies have 
identified sections of the Uniform Rules that should be modified. In 
June 1995, amendments to those provisions were published for comment 
(60 FR 32882, June 23, 1995). In addition to technical modifications or 
clarifications, the proposals also make some substantive changes 
relating to the scope of document discovery and the examination of 
witnesses by multiple counsel for a party. The proposed amendments will 
not have a significant economic impact on a substantial number of small 
entities. They affect only those persons and

[[Page 24013]]

entities who are the subject of litigated enforcement actions by the 
Board.
Following review of the public comments, the Board is expected to take 
further action within the next two months. This proposal has been 
included in the Board's overall review of its regulations as required 
by section 303 of the Riegle Community Development and Regulatory 
Improvement Act of 1994.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         06/23/95                    60 FR 32882
Further Board action by         04/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Katherine Wheatley, Assistant General Counsel, Federal 
Reserve System, Legal Division
Phone: 202 452-3779

RIN: 7100-AC05
_______________________________________________________________________




4334.  SECTION 23A OF THE FEDERAL RESERVE ACT (DOCKET NUMBER: R-
0902)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 248(i); 12 USC 371c(e)

CFR Citation:  12 CFR 250.242

Legal Deadline: None

Abstract: Section 23A of the Federal Reserve Act regulates certain 
transactions between insured depository institutions and their 
affiliates. In general, it prohibits insured depository institutions 
from engaging in covered transactions with a single affiliate in excess 
of 10 percent of the institution's capital stock and surplus 
(aggregately, the limit is 20 percent). Section 23A does not, however, 
include a definition of capital stock and surplus.
In November 1995, the Board issued for public comment a proposal that 
would define capital stock and surplus for section 23A as Tier 1 and 
Tier 2 capital plus the balance of the allowance for loan and lease 
losses (60 FR 62050, December 4, 1995). This definition would conform 
to the definition of capital and surplus in Regulation O and to the 
definition used by the Comptroller of the Currency for national bank 
lending limits.
It is not expected that the proposed definition will have a significant 
adverse economic impact on a substantial number of small institutions. 
Following review of the public comments, the Board is expected to take 
further action within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/04/95                    60 FR 62050
Further Board action by         04/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Pam Nardolilli, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-3289

RIN: 7100-AC08
_______________________________________________________________________




4335. STANDARDS FOR SAFETY AND SOUNDNESS (DOCKET NUMBER: R-0766)

Priority:  Substantive, Nonsignificant

Legal Authority:  PL 102-242

CFR Citation:  12 CFR ch II

Legal Deadline:  Final, Statutory, December 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. After considering 
the public's comments, a notice of proposed rulemaking was issued for 
comment that contained broad principle-based standards that leave the 
method for meeting such standards largely in the province of 
management.
In September 1994, the Riegle Community Development and Regulatory 
Improvement Act of 1994 modified section 132 by: (1) providing the 
agencies with the option to promulgate standards as guidelines rather 
than regulations; (2) removing bank holding companies from the scope of 
section 132; and (3) giving each agency discretion to prescribe 
standards relating to earnings, asset quality, and stock valuation that 
it deems appropriate.
Although the legislative changes allow the standards to be issued as 
guidelines, the enforcement provisions relating to compliance plans 
must be issued as regulations. Accordingly, in February 1995, the Board 
adopted a final rule and guidelines for section 132 taking into account 
these changes. The final rule is not expected to have a significant 
economic impact on small institutions.
The Board also approved for comment proposed guidelines for asset 
quality and earnings that represent broader, more comprehensive 
standards than the rigid ratios or minimums originally mandated by 
section 132. The final rule and guidelines and proposed guidelines were 
published in a joint agency notice in July 1995 (60 FR 35673 and 35688, 
July 10, 1995).
Following review of the public comments, the Board is expected to take 
further action on the proposed asset quality and earnings guidelines 
within the next six months. The proposal is part of the Board's overall 
review of Regulation H as required by section 303 of the Riegle 
Community Development and Regulatory Improvement Act of 1994.

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
Board adopted rule and 
guidelines                      07/10/95                    60 FR 35678
Board requested comment on 
additional guidelines           07/10/95                    60 FR 35688
Further Board action by         10/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB52
_______________________________________________________________________

[[Page 24014]]





4336. TEN PERCENT REVENUE LIMIT ON BANK-INELIGIBLE ACTIVITIES OF 
SUBSIDIARIES OF BANK HOLDING COMPANIES (DOCKET NUMBER: R-0841)

Priority:  Substantive, Nonsignificant

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 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 six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         07/12/94                    59 FR 35516
Further Board action by         10/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB82
_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                          Completed Actions


  



_______________________________________________________________________




4337. REG.: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN F.R.S.; REG.: 
K--INTERNATIONAL BANKING OPERATIONS; AND REG.: Y--BANK HOLDING COMPANIES 
AND CHANGE IN BANK CONTROL (DOCKET NO.:R-0885)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 
to 338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 
611; 12 USC 1814; 12 USC 1823(j); 12 USC 1828(o); 12 USC 1831o; 12 USC 
1831p-1; 12 USC 3105; ...

CFR Citation:  12 CFR 208.20; 12 CFR 211.8; 12 CFR 211.24(f); 12 CFR 
225.4(g)

Legal Deadline: None

Abstract: In July 1995, the Board approved issuing for public comment 
proposed revisions to its regulations on reporting of suspicious 
activities by the domestic and foreign banking organizations supervised 
by the Federal Reserve, including the reporting of suspicious financial 
transactions such as suspected violations of the Bank Secrecy Act (60 
FR 34481, July 3, 1995). The rules implement a new interagency 
suspicious activity referral process. The rules also reduce 
substantially the burden on banking organizations (including small 
institutions) in reporting suspicious activities while enhancing access 
to such information by the Federal law enforcement agencies, the 
Federal financial institutions supervisory agencies and the Department 
of the Treasury. It is not anticipated that the proposal will have a 
significant adverse economic impact on small institutions.
In February 1996, following review of the public comments and in 
coordination with the other Federal financial institutions supervisory 
agencies and the Department of the Treasury, the Board adopted the 
proposals with additional clarifications and burden reduction measures 
(61 FR 4338, February 5, 1996).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board approved request for 
comment                         07/03/95                    60 FR 34481
Board adopted proposal          02/05/96                     61 FR 4338

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Herbert A. Biern, Deputy Associate Director, Federal 
Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-2620

RIN: 7100-AC00
_______________________________________________________________________




4338. 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-0849)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 
to 338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 
611; 12 USC 1814; 12 USC 1817(j)(13); 12 USC 1818; 12 USC 1823(j); 12 
USC 1828(o); 12 USC 1831i; ...

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

Legal Deadline: None

Abstract: In October 1994, the Board, in conjunction with the Office of 
the Comptroller of the Currency, issued for public comment a proposal 
that would amend its risk-based capital guidelines for State member 
banks and bank holding companies by modifying the criteria used to 
define the Organization for Economic Cooperation and Development 
(OECD)-based group of countries (59 FR 52100, October 14,

[[Page 24015]]

1994). Under the guidelines, claims on the OECD-based group of 
countries are eligible for lower risk weight treatment. The OECD-based 
group of countries would continue to be defined as countries that are 
full members of the OECD (or that have concluded special lending 
arrangements with the International Monetary Fund (IMF) associated with 
the IMF's General Arrangement to Borrow), but the guidelines would 
exclude any country within this group that has rescheduled its external 
sovereign debt within the previous five years. The proposed amendment 
was based on an announcement by the Basle Supervisors' Committee that 
it intended to revise the Basle Accord definition of the OECD-based 
group of countries.
In December 1995, following review of the public comments and final 
action by the Basle Supervisors' Committee, the Board, in conjunction 
with the Office of the Comptroller of the Currency and the Federal 
Deposit Insurance Corporation, adopted the proposal in substantially 
the form proposed (60 FR 66042, December 20, 1995).
The revision is not expected to have a significant economic impact on a 
substantial number of small business entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested public comment  10/14/94                    59 FR 52100
Board adopted proposal          12/20/95                    60 FR 66042

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Robert Motyka, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-3621

RIN: 7100-AB92
_______________________________________________________________________




4339. REGULATION: K--INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-
0754)

Priority:  Substantive, Nonsignificant

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).
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. In January 1996, following review of the public 
comments, the Board adopted a final rule which allows foreign banks 
meeting certain criteria to utilize the Board's prior notice 
procedures; clarifies which foreign banks may establish general consent 
representative offices; and establishes a means by which ``special 
purpose foreign government banks'' may seek exemptions from the 
definition of ``foreign bank'' under the Foreign Banks Supervision 
Enhancement Act (61 FR 2899, January 30, 1996).
The amendments are not expected to have a significant economic impact 
on small institutions. The final rule also was a part of the Board's 
overall review of its regulations as required by section 303 of the 
Riegle Community Development and Regulatory Improvement Act of 1994.

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
Board issued final rule         01/30/96                     61 FR 2899

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB31
_______________________________________________________________________




4340. REGULATION: K--INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-
0862)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 211

CFR Citation:  12 CFR 211

Legal Deadline: None

Abstract: In December 1994, the Board issued for public comment 
proposed criteria 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 (59 FR 
64171, December 18, 1994). The criteria, as proposed, would not have a 
significant economic impact on a substantial number of small entities 
subject to the Board's regulation. In February 1996, following review 
of the public comments, the Board, in consultation with the Secretary 
of the Treasury, adopted the proposal substantially as proposed (61 FR 
6918, February 23, 1996). The final rule also was reviewed as part of 
the Board's overall review of its regulations as required by section 
303 of the Riegle Community Development and Regulatory Improvement Act 
of 1994.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested public comment  12/13/94                    59 FR 64171
Board adopted proposal          02/23/96                     61 FR 6918

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB58
_______________________________________________________________________




4341. REGULATION: K--INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-
0896)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 221 et seq; 12 USC 1841 et seq; 12 USC 3101 et 
seq

CFR Citation:  12 CFR 211

[[Page 24016]]

Legal Deadline: None

Abstract: In September 1995, the Board issued for public comment 
proposed amendments to Regulation K to provide expanded general consent 
authority for de novo investments in foreign companies by U.S. banking 
organizations that are strongly capitalized and well managed (60 FR 
49350, September 25, 1995). Following review of the public comments, 
the Board issued a final rule adopting the proposed amendments as 
modified to reflect the public comments (60 FR 67050, December 28, 
1995). This expanded general consent authority is designed to permit 
U.S. banking organizations that are strongly capitalized and well 
managed to make larger investments without the need for prior approval 
or review. Certain investments or activities, however, are not eligible 
for the expanded authority. Investments under the expanded authority 
are subject to an annual aggregate limit and to a post-investment 
notice requirement. In addition, for those investments requiring prior 
notice to the Board, the final rule streamlines the processing of such 
notices.
The final rule is not expected to have a significant adverse economic 
impact on a substantial number of small entities. It affects only those 
U.S. banking organizations with foreign operations or that are engaged 
in foreign investment activities. The final rule also was reviewed as 
part of the Board's overall review of its regulations as required by 
section 303 of the Riegle Community Development and Regulatory 
Improvement Act of 1994.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         09/25/95                    60 FR 49350
Board adopted proposal          12/28/95                    60 FR 67050

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Sandra L. Richardson, Managing Senior Counsel, Federal 
Reserve System, Legal Division
Phone: 202 452-6406

RIN: 7100-AC02
_______________________________________________________________________




4342. REGULATION: L--MANAGEMENT OFFICIAL INTERLOCKS (DOCKET NUMBER: R-
0825)

Priority:  Substantive, Nonsignificant

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 
adverse economic impact on a substantial number of depository 
institutions.
Subsequently, the Riegle Community Development and Regulatory 
Improvement Act of 1994 amended the Board's broad rulemaking authority 
by authorizing it to grant exemptions only in more narrow 
circumstances. In light of this statutory change, the Board withdrew 
its proposal as part of a new proposed joint agency rulemaking 
regarding management interlocks (Docket Number: R-0907; RIN 7100-AB90).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested public comment  02/17/94                     59 FR 7909
Board withdrew proposal         12/29/95                    60 FR 67426

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB72
[FR Doc. 96-5660 Filed 05-10-96; 8:45 am]
BILLING CODE 6210-01-F