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


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Part LIV





Federal Reserve System





_______________________________________________________________________



Semiannual Regulatory Agenda

[[Page 63488]]



FEDERAL RESERVE SYSTEM (FRS)                                           


  



_______________________________________________________________________

FEDERAL RESERVE SYSTEM

12 CFR Ch. II

Notice of 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 October 1, 
1996, through April 1, 1997. The next semiannual agenda will be 
published in April 1997.

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

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

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

SUPPLEMENTARY INFORMATION: The Board is publishing its October 1996 
agenda as part of the October 1996 Unified Agenda of Federal Regulatory 
and Deregulatory Actions, 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   
----------------------------------------------------------------------------------------------------------------
4603        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System.    7100-AC14 
4604        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 
4605        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 
4606        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 
4607        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 
4608        Section 303 Regulatory Review.........................................................    7100-AC09 
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                                                Final Rule Stage                                                
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4609        Regulation: B--Equal Credit Opportunity (Docket Number: R-0876).......................    7100-AB99 
4610        Regulation: D--Reserve Requirements of Depository Institutions (Docket Number: R-0929)    7100-AC11 
4611        Regulation: E--Electronic Fund Transfers (Docket Number: R-0919)......................    7100-AC06 
4612        Regulation: G--Securities Credit by Persons Other than Banks, Brokers, or Dealers;                  
            Regulation: T--Credit by Brokers and Dealers; Regulation: U--Credit by Banks (Docket                
            Number: R-0923).......................................................................    7100-AC12 
4613        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System               
            (Docket Number: R-0909)...............................................................    7100-AC07 
4614        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: K--International Banking Operations (Docket Number: R-0921)...........    7100-AC15 
4615        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-                 
            0930).................................................................................    7100-AC13 
4616        Regulation: O--Loans to Executive Officers, Directors, and Principal Shareholders of                
            Member Banks (Docket Number: R-0924)..................................................    7100-AC16 
4617        Regulation: R--Relations with Dealers in Securities Under Section 32, Banking Act of                
            1933 (Docket Number: R-0931)..........................................................    7100-AC17 
4618        Regulation: U--Credit by Banks for the Purpose of Purchasing or Carrying Margin Stocks              
            (Docket Number: R-0905)...............................................................    7100-AB65 
4619        Regulation: V--Loan Guarantees for Defense Production (Docket Number: R-0928).........    7100-AC18 
4620        Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-                 
            0935).................................................................................    7100-AC19 

[[Page 63489]]

                                                                                                                
4621        Regulation: CC--Availability of Funds and Collection of Checks (Docket Number: R-0926)    7100-AC20 
4622        Regulation: DD--Truth in Savings (Docket Number: R-0836 and Docket Number: R-0869)....    7100-AB80 
4623        Federal Reserve Bank Book-Entry Securities Transfer Services (Docket Number: R-0866)..    7100-AB97 
4624        Federal Reserve Payments System Risk Policy (Docket Number: R-0889)...................    7100-AC04 
4625        Revenue Limit on Bank-Ineligible Activities of Subsidiaries of Bank Holding Companies               
            Engaged in Underwriting and Dealing in Securities (Docket Number: R-0841).............    7100-AB82 
4626        Review of Restrictions on Director and Employee interlocks, Cross-Marketing Activities              
            and the Purchase and Sale of Financial Assets (Docket Number: R-0701).................    7100-AC21 
4627        Rules Regarding Availability of Information (Docket Number: R-0917)...................    7100-AC22 
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                                                Completed Actions                                               
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4628        Regulation: E--Electronic Fund Transfers (Docket Number: R-0830)......................    7100-AA77 
4629        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System               
            (Docket Number: R-0897)...............................................................    7100-AB86 
4630        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 
4631        Regulation: K--International Banking Operations (Docket Number: R-0916)...............    7100-AB88 
4632        Regulation: K--International Banking Operations (Docket Number: R-0911)...............    7100-AB89 
4633        Regulation: L--Management Official Interlocks (Docket Number: R-0907).................    7100-AB90 
4634        Regulation: M--Consumer Leasing (Docket Number: R-0892)...............................    7100-AB74 
4635        Regulation: S--Reimbursement for Providing Financial Records; Recordkeeping                         
            Requirements for Certain Financial Records (Docket Number: R-0888)....................    7100-AC03 
4636        Regulation: S--Reimbursement for Providing Financial Records; Recordkeeping                         
            Requirements for Certain Financial Records (Docket Number: R-0906)....................    7100-AC10 
4637        Regulation: T--Credit by Brokers and Dealers (Docket Number: R-0772)..................    7100-AB28 
4638        Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-                 
            0868).................................................................................    7100-AB95 
4639        Risk-Based Capital Standards: Interest Rate Risk (Docket Number: R-0802)..............    7100-AB50 
4640        Rules of Practice for Hearings (Docket Number: R-0878)................................    7100-AC05 
4641        Section 23A of the Federal Reserve Act (Docket Number: R-0902)........................    7100-AC08 
4642        Standards for Safety and Soundness (Docket Number: R-0766)............................    7100-AB52 
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FEDERAL RESERVE SYSTEM (FRS)                        Proposed Rule Stage


  



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4603.  REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS 
IN THE FEDERAL RESERVE SYSTEM

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 1818; 12 USC 1823(j); 12 USC 1828(o); 12 USC 
1831o; 12 USC 1831p-1; ...

CFR Citation:  12 CFR 208

Legal Deadline: None

Abstract: In conjunction with the Federal Deposit Insurance Corporation 
and the Office of the Comptroller of the Currency, the Board will 
consider issuing for public comment a proposed regulation establishing 
a professional qualification program for banks that engage in retail 
recommendations and sales of certain securities using their own 
employees. The proposed regulation will establish qualification 
testing, registration and continuing education requirements for bank 
employees that act in the capacity of bank securities representatives. 
The proposed requirements will be based on the professional 
qualification rules of the securities self-regulatory organizations.
It is not anticipated that the proposal will have a significant 
economic impact on a substantial number of small banks.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board may request comment by    10/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Angela Desmond, Senior Counsel, Federal Reserve System, 
Division of Banking Supervision and Regulation

[[Page 63490]]

Phone: 202 452-2781

RIN: 7100-AC14
_______________________________________________________________________




4604. 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
_______________________________________________________________________




4605. 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
_______________________________________________________________________




4606. 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

[[Page 63491]]

recourse arrangements to the maximum amount of possible loss under the 
recourse obligation up to the effective capital charge; and (3) 
requires the same risk-based capital charge for first loss direct 
credit substitutes as is currently applied to recourse transactions (59 
FR 27115, May 25, 1994).
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 two 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 two months                 10/00/96

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
_______________________________________________________________________




4607. 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.
Amendments to Regulation Y reflecting the statutory changes have been 
proposed as part of the Board's overall review of Regulation Y under 
section 303 of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (Docket Number: R-0935). Similar amendments to 
Regulation H will be considered by the Board in its overall review of 
that regulation by year-end.
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 requested comment on 
Regulation Y                    09/06/96                    61 FR 47241
Board is expected to act on 
Regulation H by                 12/00/96

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
_______________________________________________________________________




4608. 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 proposed for public comment appear elsewhere in the Agenda.
Regulation G, Securities Credit by Persons Other Than Banks, Brokers, 
or Dealers.
Regulation H, Membership of State Banking Institutions in the Federal 
Reserve System.
Regulations H and Y, Appendices, Capital Adequacy Guidelines.

[[Page 63492]]


Regulation K, International Banking Operations (Overall Comprehensive 
Review).
Regulation O, Loans to Executive Officers, Directors, and Principal 
Shareholders of Member Banks.
Regulation X, Borrowers of Securities Credit.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board action expected during the 
next six months                 04/00/97

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


  



_______________________________________________________________________




4609. 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 six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         04/26/95                    60 FR 20436
Further Board action by         04/00/97

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
_______________________________________________________________________




4610.  REGULATION: D--RESERVE REQUIREMENTS OF DEPOSITORY 
INSTITUTIONS (DOCKET NUMBER: R-0929)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 248(a); 12 USC 248(c); 12 USC 371a; 12 USC 
461; 12 USC 601; 12 USC 611; 12 USC 3105

CFR Citation:  12 CFR 208

Legal Deadline: None

Abstract: In June 1996, as part of its regulatory review process 
mandated by section 303 of the Riegle Community Development and 
Regulatory Improvement Act of 1994, the Board approved issuing for 
public comment a proposal to amend Regulation D in order to reduce 
regulatory burden and simplify and update requirements (61 FR 30545, 
June 17, 1996). In general, the proposal would delete transitional 
rules relating to the expansion of reserve requirements to nonmember 
depository institutions, the authorization of NOW accounts nationwide, 
and other matters that no longer have a significant effect.
It is not expected that the amendments will have a significant adverse 
economic impact on a substantial number of small entities. Following 
review of the public comments, the Board is expected to take further 
action by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         06/17/96                    61 FR 30545
Further Board action by         12/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Rick Heyke, Staff Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-3688

RIN: 7100-AC11
_______________________________________________________________________




4611. REGULATION: E--ELECTRONIC FUND TRANSFERS (DOCKET NUMBER: R-0919)

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. In response to comment, the Board in May 1996 published 
further proposed amendments to Regulation E, imposing modified 
Regulation E requirements on store-value products in systems that track 
individual transactions, cards, or consumers; providing an exemption 
for cards on which a maximum value of $100 can be stored; and providing 
that other stored-value cards are not covered by Regulation E (61 FR 
19696, May 2, 1996).
In the 1994 proposed revision, the Board also requested comment on an 
amendment that would permit electronic debits to an account to be 
authorized in electronic form, such as by personal computer and modem. 
In response to comment, the Board in its May 1996 proposal published 
further proposed amendments that would

[[Page 63493]]

permit electronic communications to substitute generally for oral or 
written disclosures, documentation, and notices required under 
Regulation E.
Finally, commenters 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. In response to these 
comments, the Board in its May 1996 proposal published further proposed 
amendments that would extend the error resolution time limits.
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 would 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 six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/02/96                    61 FR 19696
Further Board action by         04/00/97

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
_______________________________________________________________________




4612.  REGULATION: G--SECURITIES CREDIT BY PERSONS OTHER THAN 
BANKS, BROKERS, OR DEALERS; REGULATION: T--CREDIT BY BROKERS AND 
DEALERS; REGULATION: U--CREDIT BY BANKS (DOCKET NUMBER: R-0923)

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 207; 12 CFR 220; 12 CFR 221

Legal Deadline: None

Abstract: The Board is conducting a periodic review of its margin 
regulations. The first regulation to be reviewed was Regulation T, 
which regulates extensions of credit by and to brokers and dealers (see 
Docket Numbers R-0772, RIN 7100-AB28 and R-0840, RIN 7100-AB78). In May 
1996, at the same time the Board adopted a revised Regulation T, it 
requested public comment on additional amendments to Regulations G, T, 
and U (61 FR 20399, May 6, 1996). The proposed amendments would allow 
broker-dealers to extend good faith credit on any non-equity security; 
allow transactions involving non-equity securities to be effected in an 
account not subject to the restrictions of Regulation T's margin 
account; remove restrictions on the ability of broker-dealers to 
calculate required margin for non-equity securities on a ``portfolio'' 
basis; relax the Board's collateral requirements for the borrowing and 
lending of securities; and exempt from Regulation T any credit extended 
abroad by a U.S. broker-dealer on foreign securities to foreign 
persons. The proposal also seeks comment on whether the Board should 
expand the number of equity securities eligible for loan value under 
Regulation T and whether the Board should amend Regulation G and U to 
modify their method for determining which equity securities qualify as 
margin stock.
It is not anticipated that the revisions would have a significant 
economic impact on the overall lending activities of a substantial 
number of small lenders. Following review of the public comments, the 
Board is expected to take further action within the next two months. 
The proposals are 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 requested comment         05/06/96                    61 FR 20399
Further Board action by         10/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AC12
_______________________________________________________________________




4613. 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 
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

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 two 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 by         10/00/96

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

[[Page 63494]]

_______________________________________________________________________




4614.  REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS 
IN THE FEDERAL RESERVE SYSTEM; AND REGULATION: K--INTERNATIONAL BANKING 
OPERATIONS (DOCKET NUMBER: R-0921)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 78o-5

CFR Citation:  12 CFR 208; 12 CFR 211

Legal Deadline: None

Abstract: In April 1996, the Board, the Office of the Comptroller of 
the Currency, and the Federal Deposit Insurance Corporation jointly 
published for comment a proposed rule regarding the responsibilities of 
banks that are Government securities brokers or dealers with respect to 
sales practices concerning Government securities (61 FR 18470, April 
25, 1996). The proposed rule would establish standards concerning the 
recommendations to customers and the conduct of business by a bank that 
is a Government securities broker or dealer. The agencies also proposed 
adopting an interpretation concerning recommendations to institutional 
customers with respect to Government securities transactions. The 
agencies requested comment generally on the need for and desirability 
of the proposed rule and interpretation. The proposed rule is not 
expected to have a significant economic impact on a substantial number 
of small banks.
Following review of the public comments, the Board is expected to take 
further action by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         04/25/96                    61 FR 18470
Further Board action by         12/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Oliver Ireland, Associate General Counsel, Federal 
Reserve System, Legal Division
Phone: 202 452-3625

RIN: 7100-AC15
_______________________________________________________________________




4615.  REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS 
IN THE FEDERAL RESERVE SYSTEM; REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0930)

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 1831(o); 12 
USC 1831p-1; 12 USC 3105; ...

CFR Citation:  12 CFR 208 app A

Legal Deadline: None

Abstract: In May 1996, the Board approved issuing for public comment a 
proposal to revise the risk-based capital treatment for certain 
collateralized transactions (61 FR 42565, August 16, 1996). Under the 
Board's existing risk-based capital treatment, the portion of a 
transaction that is supported by qualifying collateral (that is, cash 
or OECD government securities) is risk-weighted at 20 percent. 
Transactions that are fully supported by collateral with a positive 
margin may be eligible for a zero percent. Generally, the proposal 
would permit a portion of a transaction that is fully supported with a 
positive margin of collateral to be eligible for a zero percent risk 
weight. The portion that is to be continuously collateralized must be 
specified by the parties.
This proposal was developed on an interagency basis and, if adopted, 
would eliminate one of the substantive differences among the agencies 
with regard to the risk-base capital treatment for collateralized 
transactions. It would implement part of the Riegle Community 
Development and Regulatory Improvement Act of 1994, which requires the 
agencies to make uniform regulations and guidelines implementing common 
supervisory policies. The effect of the proposal would be to allow 
institutions to hold less capital for certain collateralized 
transactions. It is not expected to have a significant economic impact 
on a substantial number of small entities.
Following review of the public comments, the Board is expected to take 
further action by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/16/96                    61 FR 42565
Further Board action by         12/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Barbara Bouchard, Supervisory Financial Analyst, 
Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-3072

RIN: 7100-AC13
_______________________________________________________________________




4616.  REGULATION: O--LOANS TO EXECUTIVE OFFICERS, DIRECTORS, 
AND PRINCIPAL SHAREHOLDERS OF MEMBER BANKS (DOCKET NUMBER: R-0924)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 375b; PL 102-242

CFR Citation:  12 CFR 215

Legal Deadline: None

Abstract: In April 1996, the Board approved issuing for public comment 
a proposed amendment to Regulation O, which limits how much and on what 
terms a bank may lend to its own insiders and insiders of its 
affiliates (61 FR 19863, May 3, 1996). Under the proposed rule, four of 
the five restrictions of Regulation O would not apply to extensions of 
credit by a bank to executive officers and directors of the bank's 
affiliates, provided that those executive officers and directors were 
not engaged in major policymaking at the lending bank. The fifth 
restriction, which prohibits lending on preferential terms, would 
continue to apply to extensions of credit to such persons.
Regulation O has long contained an exception from all the restrictions 
of Regulation O for qualifying executive officers of affiliates. The 
Riegle Community Development and Regulatory Improvement Act of 1994 
authorized the Board to extend the exception to qualifying directors 
but also scaled back the exception with respect to preferential terms. 
As a result, Regulation O must be scaled back for executive officers of 
affiliates at the same time it is expanded for directors of affiliates.
The proposed amendment also would simplify use of the exception by

[[Page 63495]]

eliminating the requirement that an executive officer or director be 
excluded from major policymaking at the lending bank by a resolution of 
the board of directors of the affiliate employing the executive office 
of director. Under the amendment, such a resolution would only be 
required of the board of directors of the lending bank.
It is not anticipated that the amendment would have a significantly 
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         05/03/96                    61 FR 19863
Further Board action by         10/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Gordon Miller, Attorney, Federal Reserve System, Legal 
Division
Phone: 202 452-2534

RIN: 7100-AC16
_______________________________________________________________________




4617.  REGULATION: R--RELATIONS WITH DEALERS IN SECURITIES UNDER 
SECTION 32, BANKING ACT OF 1933 (DOCKET NUMBER: R-0931)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 32

CFR Citation:  12 CFR 218

Legal Deadline: None

Abstract: In June 1996, the Board approved issuing for public comment a 
proposal to remove Regulation R from the Code of Federal Regulations 
and a Board interpretation that applies the interlocks prohibitions of 
section 32 of the Glass-Steagall Act to bank holding companies (61 FR 
34749, July 3, 1996). Section 32 prohibits officer, director, and 
employee interlocks between member banks and firms ``primarily 
engaged'' in underwriting and dealing in securities. The Board proposed 
to remove Regulation R, since the sole purpose of the regulation 
currently is to restate the statutory provisions of section 32. In 
addition, because section 32 does not, by its terms, apply to bank 
holding companies, the Board proposed rescinding its interpretation 
applying section 32 to these companies. The Board expressed the view 
that rescinding the interpretation could give some measure of 
regulatory relief to bank holding companies and offer them access to a 
larger pool of persons from which to choose their officers, directors, 
and employees.
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 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         07/03/96                    61 FR 34749
Further Board action by         11/00/96

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-AC17
_______________________________________________________________________




4618. 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 satisfy requirements 
under section 303 of the Riegle Community Development and Regulatory 
Improvement Act of 1994.
In May 1996, the Board requested comment on Regulations G, T, and U 
(Docket Number R-0923, 61 FR 20399, May 6, 1996). The proposal includes 
a request for comment on the appropriate scope of Regulation U by 
soliciting views on the definition of ``margin stock.'' Responses to 
the request will be considered as part of the periodic review of 
Regulation U.
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 three months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/12/95                    60 FR 63660
Further Board action by         11/00/96

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
_______________________________________________________________________




4619.  REGULATION: V--LOAN GUARANTEES FOR DEFENSE PRODUCTION 
(DOCKET NUMBER: R-0928)

Priority:  Substantive, Nonsignificant

Legal Authority:  50 USC app, sec 2061; EO 12919; EO 10789

CFR Citation:  12 CFR 245

Legal Deadline: None

Abstract: In May 1996, as part of its regulatory review process 
mandated by section 303 of the Riegle Community Development and 
Regulatory Improvement Act of 1994, the Board approved issuing for 
public comment a proposal to abolish its Regulation V

[[Page 63496]]

as obsolete (61 FR 26471, May 28, 1996). Regulation V implements the 
loan guarantee provisions of Title III of the Defense Production Act of 
1950, as amended (the Act), by setting forth applicable procedures, 
forms, fees, charges, and rates of interest for such loan guarantees. 
In 1975, amendments to the Act made the guarantee provisions obsolete 
for most practical purposes, but the loan guarantee provisions were not 
deleted. No loan guarantees are currently outstanding and no 
applications for loan guarantees have been filed for several years. The 
proposal seeks to eliminate an obsolete regulatory provision and does 
not impose any substantial economic burden on small entities.
Following review of the public comments, the Board is expected to take 
further action within the next month.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/28/96                    61 FR 26471
Further Board action by         10/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Heatherun Allison, Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-3565

RIN: 7100-AC18
_______________________________________________________________________




4620.  REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE IN BANK 
CONTROL (DOCKET NUMBER: R-0935)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1841 et seq; 12 USC 3106; 12 USC 3108; 12 USC 
1817(j)(13); 12 USC 1818(b)

CFR Citation:  12 CFR 225

Legal Deadline: None

Abstract: In August 1996, the Board approved issuing for public comment 
a comprehensive revision of Regulation Y that is intended to improve 
the competitiveness of bank holding companies by eliminating 
unnecessary regulatory burden and operating restrictions and by 
streamlining the application/notice process (61 FR 47241, September 6, 
1996). The proposal is also 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. Among other 
revisions, the Board proposed to establish a streamlined and expedited 
review process for bank and nonbanking proposals by well-run bank 
holding companies. The Board also proposed to reorganize and expand the 
regulatory list of nonbanking activities and to remove a number of 
restrictions on those activities that are outmoded, have been 
superseded by Board order, or do not apply to insured banks that 
conduct the same activity. In addition, the Board proposed several 
amendments to the tying restrictions, including removal of the 
regulatory extension of those restrictions to bank holding companies 
and their nonbank subsidiaries. A number of other changes have also 
been proposed to eliminate unnecessary regulatory burden and to 
streamline and modernize Regulation Y, including changes to the 
provisions implementing the Change in Bank Control Act and section 914 
of the Financial Institutions Reform, Recovery, and Enforcement Act of 
1989.
It is expected that the numerous changes proposed will result in a 
significant reduction in regulatory filings, in the paperwork burden 
and processing time associated with regulatory filings, and in the 
costs associated with complying with regulation, thereby improving the 
ability of all bank holding companies, including small organizations, 
to conduct business on a more cost-efficient basis. The Board 
specifically invited public comment on this aspect of the proposed 
revisions. Following review of the public comments, the Board is 
expected to take further action in early 1997.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         09/06/96                    61 FR 47241
Further Board action by         03/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Diane A. Koonjy, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-3274

RIN: 7100-AC19
_______________________________________________________________________




4621.  REGULATION: CC--AVAILABILITY OF FUNDS AND COLLECTION OF 
CHECKS (DOCKET NUMBER: R-0926)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 4001 et seq

CFR Citation:  12 CFR 229

Legal Deadline: None

Abstract: As part of its regulatory review process mandated by section 
303 of the Riegle Community Development and Regulatory Improvement Act 
of 1994, the Board proposed clarifying and technical amendments to its 
Regulation CC in June 1996 (61 FR 27802, June 3, 1996). The proposed 
amendments, which do not represent any major policy changes, address a 
variety of check collection issues, including the treatment of deposits 
received at ``contractual'' branches (such as affiliate banks). A 
growing number of banks are asking for clarification of contractual 
branching issues with the advent of interstate banking. Many of the 
proposed amendments are designed to reduce the burden on banks of 
complying with the regulation. The amendments would apply to all 
depository institutions and are not likely to have a significant 
economic impact on small institutions.
Following review of the public comments, the Board is expected to take 
further action by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         06/03/96                    61 FR 27802
Further Board action by         12/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AC20
_______________________________________________________________________




4622. 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

[[Page 63497]]

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
_______________________________________________________________________




4623. 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
_______________________________________________________________________




4624. FEDERAL RESERVE PAYMENTS SYSTEM RISK POLICY (DOCKET NUMBER: R-
0889)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 221 et seq

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 by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/15/95                    60 FR 42413
Further Board action by         12/00/96

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

[[Page 63498]]

_______________________________________________________________________




4625. REVENUE LIMIT ON BANK-INELIGIBLE ACTIVITIES OF SUBSIDIARIES OF 
BANK HOLDING COMPANIES ENGAGED IN UNDERWRITING AND DEALING IN SECURITIES 
(DOCKET NUMBER: R-0841)

Priority:  Economically Significant

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 for subsidiaries of bank holding 
companies engaged, to a limited extent, in underwriting and dealing in 
ineligible securities (``section 20 subsidiaries'') (59 FR 35516, July 
12, 1994). The current test limits to 10 percent of the total revenue 
of a section 20 subsidiary the revenue earned by the subsidiary from 
ineligible securities activities. 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 July 1996, the Board again sought public comment on this docket item 
proposing to retain a test based on revenue but raise from 10 percent 
to 25 percent the limit on revenue earned by a section 20 subsidiary 
from ineligible securities activities (61 FR 40643, August 5, 1996). 
The proposal would allow section 20 subsidiaries additional flexibility 
in the conduct of their securities operations and arises due to (1) the 
Board's increased experience in reviewing and monitoring the activities 
and operations of section 20 subsidiaries and (2) the Board's belief 
that changes in the product mix that section 20 subsidiaries are 
permitted to offer and developments in the securities markets have 
affected the relationship between revenue and activity. The proposal is 
not expected to 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 by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         07/12/94                    59 FR 35516
Board requested further comment 08/05/96                    61 FR 40643
Further Board action by         12/00/96

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
_______________________________________________________________________




4626.  REVIEW OF RESTRICTIONS ON DIRECTOR AND EMPLOYEE 
INTERLOCKS, CROSS-MARKETING ACTIVITIES AND THE PURCHASE AND SALE OF 
FINANCIAL ASSETS (DOCKET NUMBER: R-0701)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1843(c)(8)

CFR Citation:  None

Legal Deadline: None

Abstract: The Board is providing a second opportunity for public 
comment on proposed revisions to three of the prudential limitations 
established in its orders under section 4(c)(8) of the Bank Holding 
Company Act and section 20 of the Glass-Steagall Act that permit a 
nonbank subsidiary of a bank holding company to underwrite and deal in 
securities.
In August 1996, the Board proposed to ease or eliminate the following 
restrictions on these so-called section 20 subsidiaries: the 
prohibition on director, officer, and employee interlocks between a 
section 20 subsidiary and its affiliated banks or thrifts (the 
interlocks restriction); the restriction on a bank or thrift acting as 
agent for, or engaging in marketing activities on behalf of, an 
affiliated section 20 subsidiary (the cross-marketing restriction); and 
the restriction on the purchase and sale of financial assets between a 
section 20 subsidiary and its affiliated bank or thrift (the financial 
assets restriction) (61 FR System 40640, August 5, 1996).
The amendments are not likely to have a significant economic impact on 
a substantial number of small entities. Section 20 subsidiaries are 
generally established by the largest bank holding companies. However, 
it is hoped that the proposed revisions, if adopted, would reduce cost 
barriers for smaller bank holding companies considering establishment 
of a section 20 subsidiary. 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         08/05/96                    61 FR 40640
Further Board action by         10/00/96

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AC21
_______________________________________________________________________




4627.  RULES REGARDING AVAILABILITY OF INFORMATION (DOCKET 
NUMBER: R-0917)

Priority:  Substantive, Nonsignificant

Legal Authority:  5 USC 552; 12 USC 248(i); 12 USC 248(k); 12 USC 321 
et seq; 12 USC 611 et seq; 12 USC 1442; 12 USC 1817(a)(2)(A); 12 USC 
1817(a)(8); 12 USC 1818(u); 12 USC 1818(v); 12 USC 1821(o); 12 USC 
1821(t); 12 USC 1830; 12 USC 1844; 12 USC 1951 et seq; ...

CFR Citation:  12 CFR 261

Legal Deadline: None

Abstract: In February 1996, the Board issued for public comment 
proposed amendments to its Rules Regarding Availability of Information 
(61 FR 7436, February 28, 1996). The proposed amendments, although 
primarily technical in nature, are intended to improve the Board's 
efficiency in processing requests for the disclosure of publicly 
available information as well as confidential supervisory information. 
It is not anticipated that the proposed amendments will have a 
significant economic impact on a substantial number of small entities 
subject to the regulation.
Following review of the public comments, the Board is expected to take 
further action by year-end. The

[[Page 63499]]

amendments 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.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         02/28/96                     61 FR 7436
Further Board action by         12/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Karen Appelbaum, Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-3389

RIN: 7100-AC22
_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                          Completed Actions


  



_______________________________________________________________________




4628. 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: In March 1996, following review of the public comments, the 
Board completed a review of Regulation E, which implements the 
Electronic Fund Transfer Act (61 FR 19661, May 2, 1996). The act and 
regulation establish 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 
the institutions hold the consumer's account). The review was 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, updated, simplified, or otherwise 
revised.
The amendments to Regulation E simplify, clarify, and update the 
regulation. Because the regulation closely parallels the statutory 
requirements, there were few substantive changes to the March 1994 
proposal. Certain revisions expand the scope of exemptions from 
coverage to help reduce compliance burden. For example, the asset-size 
cutoff for a ``small institution'' exemption -- established by the 
regulation -- increased from $25 million to $100 million. Similarly, 
the regulatory exemption for securities transactions is broader in that 
it applies to transfers made through regulated brokers or dealers (or 
futures commission merchants) even if the security or commodity itself 
is not regulated (as in the case of municipal securities).
The final regulation has been shortened by about fifteen percent, a 
reduction largely attributable to the deletion of obsolete provisions 
and to the transfer of explanatory material to the commentary. In 
addition, the staff commentary interpreting the regulation has been 
reformatted and significantly improved to facilitate compliance.
The final rule is not expected to have a significant economic impact on 
small institutions. The amendments also are considered a part of the 
Board's overall review of its regulations as required by section 303 of 
the Reigle Community Development and Regulatory Improvement Act of 
1994.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board approved requesting public 
comment                         03/07/94                    59 FR 10684
Board adopted final rule        05/02/96                    61 FR 19661

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Jane Jensen Gell, Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2084

RIN: 7100-AA77
_______________________________________________________________________




4629. 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 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. In August 1996, 
following review of the public comments, the Board adopted a final rule 
developed jointly with the banking agencies in substantially the form 
proposed (61 FR 45683, August 29, 1996). The 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
Board adopted proposal          08/29/96                    61 FR 45683

Small Entities Affected: None

[[Page 63500]]

Government Levels Affected: None

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

RIN: 7100-AB86
_______________________________________________________________________




4630. 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 requested public comment on proposed 
amendments to its risk-based capital guidelines for State member banks 
and bank holding companies to incorporate a measure for market risk in 
foreign exchange and commodity activities and in the trading of debt 
and equity instruments. In March 1996, the Board requested comment on a 
revision to its proposal that would clarify how the calculation of 
capital requirements would be adjusted based on back-testing of an 
institution's internal risk measurement model. These proposals were 
consistent with proposed international market risk standards and were 
developed jointly with the other Federal bank regulatory agencies. 
Following review of the public comments, the Board and the other 
agencies adopted a final rule on market risk in August 1996 (61 FR 
47358, September 6, 1996). The final rule incorporates a revised 
version of the July 1995 proposal, consistent with revisions to 
international capital standards. The final rule requires an institution 
to calculate market risk capital requirements using its own internal 
risk measurement model and eliminates the proposed option of using a 
risk-weighting model developed by supervisors. The final rule 
incorporates the March 1996 proposal substantially as proposed.
In July 1995, the Board also requested comment on an alternative ``pre-
commitment'' approach for setting market risk capital requirements. 
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. Following review of the public comments, the Board did not 
take action on this proposal, but indicated that it may consider this 
approach as the market risk capital rules continue to evolve 
domestically and internationally.
The market risk capital rules will affect only institutions with 
relatively large trading activities and therefore will have little or 
no effect on small entities.

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
Board adopted R-0884 proposal   09/06/96                    61 FR 47358

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
_______________________________________________________________________




4631. 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. In July 1996, following review of the public 
comments, the Board adopted the amendments in the form proposed (61 FR 
39052, July 26, 1996). 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
Board adopted proposal          07/26/96                    61 FR 39052

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
_______________________________________________________________________




4632. 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

[[Page 63501]]

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.
In May 1996, following review of the public comments, the Board adopted 
the rules in substantially the form proposed (61 FR 24439, May 15, 
1996). Other issues raised for foreign banks will be considered by the 
Board in its future review of the provisions of Regulation K concerning 
the interstate operation of foreign banks. It is not expected that the 
proposals will have a significant economic impact on a substantial 
number of small banks.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/28/95                    60 FR 67100
Board adopted proposal          05/15/96                    61 FR 24439

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
_______________________________________________________________________




4633. 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 issued 
an identical proposal. 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.
In August 1996, following review of the public comments, the banking 
agencies adopted the rules substantially as proposed (61 FR 40293, 
August 2, 1996).
It is not anticipated that the final rule 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
Board adopted proposal          08/02/96                    61 FR 40293

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB90
_______________________________________________________________________




4634. 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. In November 
1993, the Board approved issuing for public comment and 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. The proposed rulemaking is 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.
On September 18, 1996, following review of the public comments, the 
Board adopted final amendments to Regulation M (61 FR 52246, October 7, 
1996). The final rule contains many of the revisions that were proposed 
and makes further changes, some of them substantive.
Some of the changes--limited to motor vehicle leasing--include a 
statement alerting consumers about charges for terminating a lease 
early and disclosure of how scheduled periodic payments are derived 
(shown as a mathematical progression). A lessor would not be required 
to disclose a lease charge or the cost of a lease expressed as a rate, 
but if it chose to disclose or advertise a rate, the lessor would have 
to include a statement cautioning the consumer not to rely on the rate 
alone and that the rate should be used in conjunction with other cost 
disclosures. The final rule makes changes in the format for providing 
disclosures; certain items would be segregated from other information 
to draw consumers' attention. In addition, the final rule contains 
revisions that implement a statutory amendment and that make other 
changes to the advertising provisions. The statutory amendment allows a 
toll-free telephone number or a print advertisement to substitute for 
certain lease disclosures in radio commercials; the final rule expands 
the application of this provision to television advertising.
It is not anticipated that the revisions will have a significant 
economic impact on a substantial number (cont)

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
Comment period extended until 
02/15/96                        12/06/95                    60 FR 62349
Board adopted revisions         10/07/96                    61 FR 52246

Small Entities Affected: None

Government Levels Affected: None

Additional Information: ABSTRACT CONT: of small entities.

[[Page 63502]]

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

RIN: 7100-AB74
_______________________________________________________________________




4635. 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.
Following review of the public comments, the Treasury and the Board 
adopted the rule as proposed (61 FR 14383, April 1, 1996). These 
amendments will not have a significant adverse economic impact on small 
institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/24/95                    60 FR 44144
Board adopted proposal          04/01/96                    61 FR 14383

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
_______________________________________________________________________




4636. 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 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.
In June 1996, following review of the public comments, the Board 
adopted a revised rule with further revisions in the fee schedule (61 
FR 29638, June 12, 1996). 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
Board adopted proposal          06/12/96                    61 FR 29638

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
_______________________________________________________________________




4637. REGULATION: T--CREDIT BY BROKERS AND DEALERS (DOCKET NUMBER: R-
0772)

Priority:  Economically Significant. Major under 5 USC 801.

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); In May 
1996, following review of the public comments, the Board took final 
action on many of the proposed amendments (61 FR 20386, May 6, 1996). 
At the same time, the Board solicited comment on additional proposals 
concerning Regulation T, as well as regulations G and U, the margin 
regulations applicable to banks and lenders other than brokers and 
dealers (Docket Number R-0923). The final rule eliminates restrictions 
on the ability of

[[Page 63503]]

broker-dealers to arrange for credit; increases the type and number of 
domestic and foreign securities that may be bought on margin and 
increases the loan value of some securities that are already 
marginable; deletes Board rules, effective June 1, 1997, regarding 
options transactions in favor of the rules of the options exchanges; 
and reduces restrictions on transactions involving foreign persons, 
foreign securities, and foreign currency.
It is not anticipated that the revisions will have a significant 
economic impact on the overall lending activities of a substantial 
number of small brokerage firms.
The 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 issued advance notice and 
request for comment             08/18/92                    57 FR 37109
Board requested comment on 
amendments                      06/29/95                    60 FR 33763
Board adopted amendments        05/06/96                    61 FR 20386

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
_______________________________________________________________________




4638. 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 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).
In August 1996, following review of the public comments, the Board 
adopted the amendment substantially as proposed, except that the Board 
determined to refrain from imposing a general requirement that a bank 
holding company disclose to its fiduciary customers that it may acquire 
for them shares of an investment company for which the bank holding 
company serves as investment advisor (61 FR 45873, August 30, 1996). 
The Board concluded that existing disclosure requirements are generally 
sufficient to ensure that fiduciary customers are aware of potential 
conflicts of interest that may arise from this activity.
It is not expected that the final rules will have a significant 
economic impact on a substantial number of small entities that would be 
subject to the regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/30/94                    59 FR 67654
Board adopted proposal          08/30/96                    61 FR 45873

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
_______________________________________________________________________




4639. 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, the Board approved for public comment a notice of 
proposed rulemaking for IRR. Following review of the public comments, 
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).
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 described a measurement framework comprised 
of exemption screens, a supervisory model, and use of a bank's own 
internal model. Based on continued concerns expressed by the industry 
in their comment letters and the numerous difficulties the agencies 
encountered in trying to develop and implement a standardized measure 
with an appropriate balance between accuracy and burden, the agencies 
decided not to adopt a standard measure.
Instead, the agencies decided that sound practices guidance could more 
appropriately address safety and soundness concerns and provide the

[[Page 63504]]

industry with greater flexibility in measuring and managing interest 
rate risk.In May 1996, following review of the public comments, the 
Board approved a joint agency policy statement providing guidance to 
banks on sound practices to be followed for managing interest rate risk 
(61 FR 33166, June 26, 1996).
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.
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
Board approved Joint Agency 
Policy Statement                06/26/96                    61 FR 33166
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
_______________________________________________________________________



4640. RULES OF PRACTICE FOR HEARINGS (DOCKET NUMBER: R-0878)
Priority:  Substantive, Nonsignificant
Legal Authority:  12 USC 504; 12 USC 554 to 557; 12 USC 248; 12 USC 
324; 12 USC 505; 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 entities who are the 
subject of litigated enforcement actions by the Board.
In May 1996, following review of the public comments, the Board and the 
other banking agencies adopted the amendments substantially in the form 
proposed (61 FR 20338, May 6, 1996). 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
Board adopted proposal          05/06/96                    61 FR 20338

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
_______________________________________________________________________




4641. 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). In April 1996, following review 
of the public comments, the Board adopted a definition of capital stock 
and surplus for section 23A essentially as proposed (61 FR 19805, May 
3, 1996). The definition became effective as of July 1, 1996. It is 
consistent with the definition of capital and surplus in Regulation O 
and with the definition used by the Office of the Comptroller of the 
Currency for national bank lending limits.
It is not expected that the definition will have a significant adverse 
economic impact on a substantial number of small institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/04/95                    60 FR 62050
Board adopted proposal          05/03/96                    61 FR 19805

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
_______________________________________________________________________




4642. 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

[[Page 63505]]

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 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 adopted the asset 
quality and earnings guidelines substantially as proposed (61 FR 43948, 
August 27, 1996). The safety and soundness guidelines were completed as 
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
Board adopted asset quality and 
earnings guidelines             08/27/96                    61 FR 43948

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
[FR Doc. 96-24937 Filed 11-27-96; 8:45 am]
BILLING CODE 6210-01-F