[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 LV



Federal Reserve System



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Semiannual Regulatory Agenda

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FEDERAL RESERVE SYSTEM (FRS)                                           


  



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FEDERAL RESERVE SYSTEM

12 CFR Ch. II

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 April 1 through 
October 1, 1997. The next semiannual agenda will be published in 
October 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 April 1997 
agenda as part of the April 1997 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                                              
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4154        Regulation: D--Reserve Requirements of Depository Institutions; and Regulation: I--                 
            Issue and Cancellation of Capital Stock of Federal Reserve Banks......................    7100-AC25 
4155        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: K--International Banking Operations...................................    7100-AC28 
4156        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 
4157        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 
4158        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 
4159        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: Y--Bank Holding Companies and Change in Bank Control..................    7100-AC29 
4160        Regulation: Z--Truth in Lending (Docket Number: R-0954)...............................    7100-AC32 
4161        Regulation: DD--Truth in Savings......................................................    7100-AC34 
4162        Section 303 Regulatory Review.........................................................    7100-AC09 
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                                                Final Rule Stage                                                
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4163        Regulation: B--Equal Credit Opportunity (Docket Number: R-0955).......................    7100-AC23 
4164        Regulation: C--Home Mortgage Disclosure (Docket: R-0951)..............................    7100-AC24 
4165        Regulation: D--Reserve Requirements of Depository Institutions (Docket Number: R-0929)    7100-AC11 
4166        Regulation: E--Electronic Fund Transfers (Docket Number: R-0919)......................    7100-AC06 
4167        Regulation: E--Electronic Fund Transfers (Docket Number: R-0959)......................    7100-AC26 
4168        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 
4169        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-0944).......................................................................    7100-AC27 
4170        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System               
            (Docket Number: R-0909)...............................................................    7100-AC07 
4171        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System               
            (Docket Number: R-0950)...............................................................    7100-AC14 

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4172        Regulation: H--Membership of State Banking Institutions in the Federal Reserve System;              
            and Regulation: K--International Banking Operations (Docket Number: R-0921)...........    7100-AC15 
4173        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 
4174        Regulation: M--Consumer Leasing (Docket Number: R-0952)...............................    7100-AC30 
4175        Regulation: O--Loans to Executive Officers, Directors, and Principal Shareholders of                
            Member Banks (Docket Numbers: R-0924, R-0939, and R-0940).............................    7100-AC16 
4176        Regulation: U--Credit by Banks for the Purpose of Purchasing or Carrying Margin Stocks              
            (Docket Number: R-0905)...............................................................    7100-AB65 
4177        Regulation: Y--Bank Holding Companies and Change in Bank Control; Review of                         
            Restrictions in the Board's Section 20 Orders (Docket Number: R-0958).................    7100-AC31 
4178        Regulation: Z--Truth in Lending (Docket Number: R-0960)...............................    7100-AC33 
4179        Regulation: DD--Truth in Savings (Docket Number: R-0836 and R-0869)...................    7100-AB80 
4180        Rules Regarding Availability of Information (Docket Number: R-0917)...................    7100-AC22 
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                                                Completed Actions                                               
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4181        Regulation: B--Equal Credit Opportunity (Docket Number: R-0876).......................    7100-AB99 
4182        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 
4183        Regulation: R--Relations with Dealers in Securities Under Section 32, Banking Act of                
            1933 (Docket Number: R-0931)..........................................................    7100-AC17 
4184        Regulation: V--Loan Guarantees for Defense Production (Docket Number: R-0928).........    7100-AC18 
4185        Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-                 
            0935).................................................................................    7100-AC19 
4186        Regulation: CC--Availability of Funds and Collection of Checks (Docket Number: R-0926)    7100-AC20 
4187        Federal Reserve Bank Book-Entry Securities Transfer Services (Docket Number: R-0866)..    7100-AB97 
4188        Federal Reserve Payments System Risk Policy (Docket Number: R-0889)...................    7100-AC04 
4189        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 
4190        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 
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FEDERAL RESERVE SYSTEM (FRS)                        Proposed Rule Stage


  



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4154.  REGULATION: D--RESERVE REQUIREMENTS OF DEPOSITORY 
INSTITUTIONS; AND REGULATION: I--ISSUE AND CANCELLATION OF CAPITAL STOCK 
OF FEDERAL RESERVE BANKS

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 222; 12 USC 248(i); 12 USC 321; 12 USC 461(c)

CFR Citation:  12 CFR 204; 12 CFR 209

Legal Deadline: None

Abstract: Within the next two months it is expected that the Board will 
issue for public comment proposed amendments to define where a 
depository institution is located for purposes of Federal Reserve 
membership (Regulation I) and reserve account maintenance (Regulation 
D). The proposed amendments are intended to facilitate centralization 
of Federal Reserve accounts by banks with interstate branches and banks 
that are part of a multistate holding company family. The amendments 
would not have a significant economic impact on a substantial number of 
small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board is expected to request 
comment by                      04/00/97

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-AC25

[[Page 22676]]

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4155.  REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS 
IN THE FEDERAL RESERVE SYSTEM; AND REGULATION: K--INTERNATIONAL BANKING 
OPERATIONS

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1835a

CFR Citation:  12 CFR 208; 12 CFR 211

Legal Deadline: None

Abstract: Section 109 of the Riegle-Neal Interstate Banking and 
Branching Efficiency Act of 1994 requires the Federal banking agencies 
to prescribe uniform regulations to prohibit an out-of-state bank from 
using the authority provided by the act to engage in interstate 
branching primarily for the purpose of deposit production. Such 
regulations must also include guidelines to ensure that interstate 
branches are reasonably helping to meet the credit needs of the 
communities that the branches serve. Within the next two months the 
Board is expected to issue for public comment proposed amendments to 
Regulations H and K to implement section 109.
It is not anticipated that regulations adopted under section 109 would 
have a significant economic impact on a substantial number of small 
entities subject to regulation by the Board, as any rules adopted 
pursuant to section 109 would apply only to banks with interstate 
branches.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board may request comment by    04/00/97

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AC28
_______________________________________________________________________




4156. 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. The Board 
and the other agencies will issue a notice of proposed rulemaking for 
public comment when interagency agreement is reached.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board may consider amendments to 
Regulations H and Y by          10/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Michael Starr, Senior Attorney, Federal Reserve System, 
Division of Banking Supervision and Regulation
Phone: 202 452-5874

RIN: 7100-AB39
_______________________________________________________________________




4157. 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

[[Page 22677]]

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          12/00/97

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
_______________________________________________________________________




4158. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0835)

Priority:  Substantive, Nonsignificant

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

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

Legal Deadline: None

Abstract: In May 1994, the Board issued for public comment two 
proposals on the capital treatment of recourse arrangements and direct 
credit substitutes. The first proposal: (1) formally defines recourse 
and direct credit substitutes; (2) reduces the risk-based capital 
charge for low-level recourse arrangements to the maximum amount of 
possible loss under the recourse obligation up to the effective capital 
charge; and (3) requires the 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 and direct credit substitutes 
or purchasing asset-backed securities; 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                 04/00/97

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
_______________________________________________________________________




4159.  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 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 1816; 12 USC 1818; 12 USC 1823(j); 12 USC 
1828(o); 12 USC 1831o; ...

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

Legal Deadline: None

Abstract: Within the next two months it is expected that the Board will 
issue for public comment proposals to revise the Federal Reserve's 
risk-based capital treatment for junior liens on 1- to 4-family 
residential properties and for investments in mutual funds. The 
proposals also simplify the Federal Reserve's leverage capital 
guidelines for banks and make the leverage capital guidelines for bank 
holding companies consistent with a recently approved definition of a 
well-capitalized bank holding company.
The proposals are being developed on an interagency basis as part of 
the efforts under section 303 of the Riegle Community Development and 
Regulatory Improvement Act of 1994 to make interagency guidelines 
uniform. After the other agencies have completed their approval 
processes, the proposals will be issued for public comment. It is not 
anticipated that the proposals will have a significant economic impact 
on a substantial number of small entities subject to the Board's 
regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board is expected to request 
comment by                      04/00/97

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-AC29

[[Page 22678]]

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4160.  REGULATION: Z--TRUTH IN LENDING (DOCKET NUMBER: R-0954)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1601

CFR Citation:  12 CFR 226

Legal Deadline:  NPRM, Statutory, March 31, 1997.

Abstract: The Economic Growth and Regulatory Paperwork Reduction Act of 
1996 (Title II of the Omnibus Consolidated Appropriations Act, 1997) 
(the 1996 Act) requires the Board and the Department of Housing and 
Urban Development (HUD) to simplify and improve the disclosures given 
in a mortgage transaction subject to the Truth in Lending Act and the 
Real Estate Settlement Procedures Act. In December 1996, the Board 
issued jointly with HUD an Advanced Notice of Proposed Rulemaking 
solicting comment on how to simplify these disclosures (61 FR 69055, 
December 31, 1996). The 1996 Act requires that any proposed regulatory 
changes be published by March 31, 1997. If legislation is necessary to 
streamline the requirements of the two statutes, the Board and HUD are 
required to submit legislative recommendations to the Congress.
Following review of the public comments, the Board is expected to take 
further action within the next two months. The proposed rulemaking is 
not expected to have a significant economic impact on small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/31/96                    61 FR 69055
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-AC32
_______________________________________________________________________




4161.  REGULATION: DD--TRUTH IN SAVINGS

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 4301 et seq

CFR Citation:  12 CFR 230

Legal Deadline: None

Abstract: Sections 261 to 275 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 require depository institutions to 
provide a schedule of terms, rates, and fees for deposit accounts 
offered by the institution. The law also sets forth rules for 
advertisements for deposit accounts.
In September 1996, the Congress amended the Truth in Savings Act as a 
part of the Economic Growth and Regulatory Paperwork Reduction Act of 
1996. The amendments repeal the definition of ``indoor lobby sign,'' 
eliminate any disclosure requirements for nonrenewing time accounts 
with terms less than 30 days, and exempt certain credit unions from 
coverage. Within the next two months the Board is expected to consider 
proposing for public comment amendments to implement the statutory 
changes. It is not expected that there will be a significant economic 
impact on small institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board is expected to request 
comment by                      04/00/97

Small Entities Affected: None

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-AC34
_______________________________________________________________________




4162. 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). A progress report was 
sent to the Congress in September 1996.
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 statement/other regulatory guidance. Reviews already 
proposed for public comment appear elsewhere in the Agenda.
Regulation B, Equal Credit Opportunity.
Regulation C, Home Mortgage Disclosure.
Regulation H, Membership of State Banking Institutions in the Federal 
Reserve System.
Regulation H and Y, Appendices, Capital Adequacy Guidelines.
Regulation I, Issue and Cancellation of Capital Stock of Federal 
Reserve Banks.
Regulation K, International Banking Operations (Overall Comprehensive 
Review).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board action expected during the 
next six months                 10/00/97

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

[[Page 22679]]

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FEDERAL RESERVE SYSTEM (FRS)                           Final Rule Stage


  



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4163.  REGULATION: B--EQUAL CREDIT OPPORTUNITY (DOCKET NUMBER: 
R-0955)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1691 to 1691f

CFR Citation:  12 CFR 202

Legal Deadline:  Final, Statutory, March 31, 1997.

Abstract: On September 30, 1996, the President signed into law 
amendments to the Equal Credit Opportunity Act (ECOA) as part of the 
Economic Growth and Regulatory Paperwork Reduction Act of 1996 (1996 
Act). Section 2302 of the 1996 Act creates a legal privilege for 
information developed by creditors through ``self-tests'' conducted to 
determine the level or effectiveness of creditor compliance with the 
ECOA, provided that appropriate corrective action is taken to address 
any possible violations that may be discovered. Privileged information 
may not be obtained by a government agency for use in an examination or 
investigation relating to fair lending compliance or by a government 
agency or credit applicant in any civil proceeding in which a violation 
of the ECOA is alleged. The 1996 Act also provides that a challenge to 
a creditor's claim of privilege may be filed in any court or 
administrative law proceeding with appropriate jurisdiction. In January 
1997, the Board issued for public comment regulations, including a 
definition of what constitutes a ``self-test'' (62 FR 56, January 2, 
1997). The proposed regulations would define a ``self-test'' as any 
program, practice, or study that creates data or factual information 
about the creditor's compliance with the ECOA that is not available or 
derived from loan files or other records related to credit 
transactions. This includes but is not limited to the practice of using 
fictitious loan applicants (testers).
Following review of the public comments, the Board is expected to take 
action within the next two months. The proposal is not expected to have 
a significant economic impact on small institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/02/97                       62 FR 56
Further Board action by         04/00/97

Small Entities Affected: None

Government Levels Affected: State, Federal

Agency Contact: James A. Michaels, Senior Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-3667

RIN: 7100-AC23
_______________________________________________________________________




4164.  REGULATION: C--HOME MORTGAGE DISCLOSURE (DOCKET: R-0951)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 2801 to 2810

CFR Citation:  12 CFR 203

Legal Deadline: None

Abstract: In December 1996, the Board approved issuing for public 
comment a proposal to amend Regulation C to implement statutory changes 
to the Home Mortgage Disclosure Act (61 FR 68168, December 27, 1996). 
The proposal ties the asset-size exemption threshold for depository 
institutions to changes in the consumer price index, modifies the 
disclosure requirements, and makes certain other technical changes. In 
January 1997, the Board issued an interim rule increasing the asset-
size exemption threshold for depository institutions based on the 
increases in the consumer price index since 1975 (62 FR 3603, January 
24, 1997). Institutions with asset sizes below the threshold, which has 
been raised from $10 million to 28 million, are now exempt from 1997 
data collection. The rule also provides for future increases in that 
exemption threshold if the consumer price index increases. Both the 
proposal and the interim rule are the result of recent statutory 
changes.
Following review of the public comments, the Board is expected to take 
further action within the next two months on both the proposal and the 
interim rule. The final rule is expected to reduce burden on small 
depository institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/27/96                    61 FR 68168
Further Board action by         04/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Manley Williams, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-5565

RIN: 7100-AC24
_______________________________________________________________________




4165. 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 
burden and simplify and update regulatory 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.
In December 1996, following review of the public comments, the Board 
adopted the revisions substantially as proposed (61 FR 69020, December 
31, 1996.
At the same time, the Board issued for public comment a proposed rule 
that would revise and clarify the definition of ``savings deposit'' 
consistent with comments received in connection with the Board's June 
proposal and would make conforming changes to the definition of 
``transaction account'' (61 FR 96054, December 31, 1996). It is not 
expected that the proposal will have a significant adverse impact upon 
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
Board adopted June 1996 proposal12/31/96                    61 FR 69020

[[Page 22680]]

Board requested comment on 
additional proposal             12/31/96                    61 FR 69054
Further Board action by         12/00/97

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
_______________________________________________________________________




4166. 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. In the proposal, the Board requested comment on 
whether Regulation E should apply to stored-value cards. In response to 
comment, the Board in May 1996 published further proposed amendments to 
Regulation E imposing modified Regulation E requirements on stored-
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).
The Economic Growth and Regulatory Paperwork Reduction Act of 1996 
requires the Board to conduct a study of stored-value products--
evaluating the impact of Regulation E on the cost, development, and 
operation of such products--and to submit a report to the Congress by 
March 30, 1997. The Act also prohibits the Board from finalizing the 
proposed amendments relating to stored-value products until three 
months after the report is submitted to the Congress or nine months 
after enactment of the Act, whichever is later.
Also in response to comment on the 1994 proposed revision, the Board in 
its May 1996 proposal published further proposed amendments that would 
permit electronic communications to substitute generally for oral or 
written disclosures, documentation, and notices required under 
Regulation E.
Finally, in response to other comments, the Board in its May 1996 
proposal published further proposed amendments that would extend the 
error resolution time limits for new accounts.
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 on the proposed amendments relating to 
electronic communications and error-resolution time limits within the 
next two months, and on the proposed amendments relating to stored-
value cards within the next five 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
_______________________________________________________________________




4167.  REGULATION: E--ELECTRONIC FUND TRANSFERS (DOCKET NUMBER: 
R-0959)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1693

CFR Citation:  12 CFR 205

Legal Deadline: None

Abstract: In January 1997, the Board issued for public comment proposed 
amendments to Regulation E, which implement the Electronic Fund 
Transfer Act (EFTA) (62 FR 3242, January 22, 1997). The proposed 
revisions implement an amendment to the EFTA, contained in the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996, that 
exempts certain electronic benefit transfer (EBT) programs from the 
EFTA. Generally, EBT programs involve the issuance of access cards and 
personal identification numbers to recipients of government benefits so 
that they can obtain their benefits through automated teller machines 
and point-of-sale terminals. The Board's proposal exempts from 
Regulation E needs-tested EBT programs established or administered by 
State or local government agencies. Federally administered EBT programs 
and State and local employment-related EBT programs (such as State 
pension programs) would continue to be subject to modified requirements 
that recognize the special characteristics of EBT programs. Regulation 
E applies to all types of institutions that offer EFT services, not 
just State member banks. The proposed amendments are not expected to 
have a significant economic impact on State member banks or other 
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         01/22/97                     62 FR 3242
Further Board Action by         04/00/97

Small Entities Affected: None

Government Levels Affected: State, Local, Federal

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

RIN: 7100-AC26
_______________________________________________________________________




4168. 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 78w Securities Exchange Act of 1934, as amended

CFR Citation:  12 CFR 207; 12 CFR 220; 12 CFR 221

Legal Deadline: None

[[Page 22681]]

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 Regulations 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 four 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         06/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Scott Holz, Senior Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-2966

RIN: 7100-AC12
_______________________________________________________________________




4169.  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-0944)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 78g 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: On October 11, 1996, the President signed the National 
Securities Markets Improvement Act of 1996 (the Markets Improvement 
Act). Under the Markets Improvement Act, the Board no longer has the 
authority to regulate certain loans to registered broker-dealers unless 
it finds that such rules are necessary or appropriate in the public 
interest or for the protection of investors. The Markets Improvement 
Act also repeals section 8(a) of the Securities Exchange Act of 1934, 
which limited the sources of credit for broker-dealers who pledge 
exchange-traded equity securities to certain banks and other broker-
dealers. In November 1996, the Board solicited comment on amendments to 
its margin regulations (Regulations G, T, and U) to implement the 
statutory amendments in the Markets improvement Act and further the 
policies behind their adoption (61 FR 60168, November 26, 1996).
It is not anticipated that the proposal will have a significant 
economic impact on a substantial number of small banks. Following 
review of the public comments, the Board is expected to take further 
action by mid-year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         11/26/96                    61 FR 60168
Further Board action by         06/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Scott Holz, Senior Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-2966

RIN: 7100-AC27
_______________________________________________________________________




4170. 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         04/00/97

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 22682]]

_______________________________________________________________________




4171. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-0950)

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 December 1996, the Board, the Federal Deposit Insurance Corporation, 
and the Office of the Comptroller of the Currency jointly published for 
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 (61 FR 68824, December 30, 
1996). 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.
Following review of the public comments, the Board is expected to take 
further action within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/30/96                    61 FR 68824
Further Board action by         04/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Angela Desmond, Senior Counsel, Federal Reserve System, 
Division of Banking Supervision and Regulation
Phone: 202 452-2781

RIN: 7100-AC14
_______________________________________________________________________




4172. 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 within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         04/25/96                    61 FR 18470
Further Board action by         04/00/97

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
_______________________________________________________________________




4173. 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 August 1996, the Board issued 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 risk weight. 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-based 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 mid-year.

[[Page 22683]]



Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/16/96                    61 FR 42565
Further Board action by         06/00/97

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
_______________________________________________________________________




4174.  REGULATION: M--CONSUMER LEASING (DOCKET NUMBER: R-0952)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1667 et seq

CFR Citation:  12 CFR 213

Legal Deadline: None

Abstract: In December 1996, the Board approved issuing for public 
comment a proposal to implement amendments made to the Consumer Leasing 
Act (CLA) by the Economic Growth and Regulatory Paperwork Reduction Act 
of 1996 (62 FR 62, January 2, 1997). The CLA required lessors to 
provide consumers with uniform cost and other disclosures about 
consumer lease transactions. The proposed revisions streamline the 
advertising disclosures for lease transactions. In addition, the 
proposal contains several technical amendments that would be made to 
the regulation.
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 two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/02/97                       62 FR 62
Further Board action by         04/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Kyung Cho-Miller, Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2341

RIN: 7100-AC30
_______________________________________________________________________




4175. REGULATION: O--LOANS TO EXECUTIVE OFFICERS, DIRECTORS, AND 
PRINCIPAL SHAREHOLDERS OF MEMBER BANKS (DOCKET NUMBERS: R-0924, R-0939, 
AND R-0940)

Priority:  Substantive, Nonsignificant

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

CFR Citation:  12 CFR 215

Legal Deadline: None

Abstract: 
The Economic Growth and Regulatory Paperwork Reduction Act of 1996 (the 
``Regulatory Relief Act'') generally expanded the authority of the 
Board to allow banks to exempt directors and executive officers of 
affiliates from the general insider lending restrictions in section 
22(h) of the Federal Reserve Act and Regulation O. The Regulatory 
Relief Act also narrowed the authority of the Board by prohibiting 
exemptions for insiders of certain larger affiliates. These statutory 
changes required the Board to supplement the proposed rule (Docket 
Number R-0924) published in May 1996 with a revised proposal published 
in November 1996 (Docket Number R-0940, 61 FR 57797, November 8, 1996).
Under the revised proposal, a bank may exempt the directors and 
executive officers of affiliates (other than the bank's top-tier 
holding company and any intermediate holding company for the bank) from 
all insider lending restrictions. As required by the Regulatory Relief 
Act, directors and executive officers of affiliates that constitute 
more than 10 percent of the consolidated assets of the top-tier holding 
company may not be exempted.
The Regulatory Relief Act also permitted directors and executive 
officers to participate in employee benefit programs that extend credit 
at below-market terms, if the plans are widely available and do not 
give preference to directors and executive officers. A final rule 
implementing this change was adopted and became effective November 8, 
1996 (Docket Number R-0939, 61 FR 57769, November 8, 1996). The final 
rule also implemented the provision in the proposed rule of May 1996 to 
simplify the actions the board of directors of a bank must take in 
order to exempt eligible insiders of affiliates.
Under the Regulatory Relief Act, executive officers of the larger 
affiliates of a bank, who previously could be exempted from the insider 
lending restrictions, no longer may be. The proposed rule does not 
increase the possible adverse economic impact of this prohibition on 
any class of financial 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
Board requested comment on 
supplemental proposal           11/08/96                    61 FR 57797
Further Board action by         04/00/97

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
_______________________________________________________________________




4176. 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

[[Page 22684]]

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.''
In October 1996, the Board requested comment on Regulations G, T, and U 
(Docket Number R-0944, 61 FR 60168, November 26, 1996). The proposal 
seeks comment on amendments to implement the National Securities 
Markets Improvement Act of 1996, which limits the Board's authority to 
regulate extensions of credit to certain broker-dealers. Responses to 
both the May 1996 and the October 1996 requests are also being 
considered as part of the Regulation U review.
It is not anticipated that the revisions will have a significant 
economic impact on the overall lending activities of a substantial 
number of small banks. Following review of the public comments, the 
Board is expected to take further action within the next four months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/12/95                    60 FR 63660
Further Board action by         06/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Scott J. Holz, Senior Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-2966

RIN: 7100-AB65
_______________________________________________________________________




4177.  REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE IN BANK 
CONTROL; REVIEW OF RESTRICTIONS IN THE BOARD'S SECTION 20 ORDERS (DOCKET 
NUMBER: R-0958)

Priority:  Economically Significant. Major under 5 USC 801.

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

CFR Citation:  12 CFR 225

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 the member bank may not 
underwrite and deal in directly (``ineligible securities''). Beginning 
in 1987, the Board has issued a series of orders authorizing bank 
holding companies to establish ``section 20 subsidiaries'' to engage in 
underwriting and dealing in ineligible securities. In those orders, the 
Board established a series of prudential restrictions as conditions for 
approval under the Bank Holding Company Act. The restrictions are 
designed to prevent securities underwriting and dealing risk from being 
passed from a section 20 subsidiary to an affiliated insured depository 
institution, and thus to the Federal safety net, and to mitigate the 
potential for conflicts of interest, unfair competition, and other 
adverse effects that may arise from the conduct of ineligible 
securities activities.
In January 1997, the Board issued for public comment a proposal to 
remove most of the prudential restrictions that apply to section 20 
subsidiaries (62 FR 2622, January 17, 1997). The Board noted that the 
prudential restrictions were adopted when the Board had little 
experience supervising investment banks in the United States and before 
the existence of a number of significant protections currently in 
place. In view of these factors and the fact that the prudential 
restrictions prevent bank holding companies from reaping possible 
synergy gains from the operation of an investment bank, the Board 
proposed removing most of the prudential restrictions and retaining 
only those that address bank safety and soundness, significant 
conflicts of interest, or other concerns that are not addressed by 
other statutes or regulations.
It is not anticipated that the proposal will have a significant 
economic impact on a substantial number of small entities subject to 
the Board's regulation. Following review of the public comments, the 
Board is expected to take further action within the next six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/17/97                     62 FR 2622
Further Board action by         10/00/97

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AC31
_______________________________________________________________________




4178.  REGULATION: Z--TRUTH IN LENDING (DOCKET NUMBER: R-0960)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1601 et seq

CFR Citation:  12 CFR 226

Legal Deadline: None

Abstract: In January 1997, the Board approved issuing for public 
comment a proposal to revise the variable-rate disclosure provisions in 
Regulation Z (62 FR 5183, February 4, 1997). The revisions implement an 
amendment to the Truth in Lending Act (TILA) contained in the Economic 
Growth and Regulatory Paperwork Reduction Act of 1996. The TILA 
requires creditors to provide consumers with uniform cost and other 
disclosures about consumer credit transactions. The amendment applies 
to variable-rate loans with a term exceeding one year and secured by 
the consumer's principal dwelling. The amendment allows creditors 
either (1) to disclose an historical example of how rates tied to a 
particular index or formula moved over a fifteen-year period and how 
rate changes affected loan payments based on a $10,000 loan or (2) to 
give a statement that the periodic payment may substantially increase 
or decrease together with a maximum interest rate and payment based on 
a $10,000 loan.
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 two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         02/04/97                     62 FR 5183

[[Page 22685]]

Further Board action by         04/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Kyung Cho-Miller, Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC33
_______________________________________________________________________




4179. REGULATION: DD--TRUTH IN SAVINGS (DOCKET NUMBER: R-0836 AND R-
0869)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 4301 et seq

CFR Citation:  12 CFR 230

Legal Deadline: None

Abstract: Sections 261 to 275 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 require depository institutions to 
provide a schedule of terms, rates, and fees for deposit accounts 
offered by the institution. The law also sets forth rules for 
advertisements for deposit accounts.
In January 1995, the Board issued for public comment proposed 
amendments to Regulation DD that would produce an annual percentage 
yield (APY) that reflects the timing of interest payments as well as 
the timing of compounding. The proposal also solicits comment on an 
alternative method of calculating the APY (an internal rate of return 
formula) (60 FR 5142, January 26, 1995). The January 1995 proposal is 
an outgrowth of a May 1994 proposal that would have affected 
institutions' compounding and crediting practices in addition to 
changing the APY (59 FR 24378, May 11, 1994). The Board also adopted in 
January 1995 an interim rule that permits institutions and deposit 
brokers advertising noncompounding multiyear time accounts that require 
interest payouts at least annually to disclose an APY equal to the 
interest rate (60 FR 5128, January 26, 1995, Docket Number 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.
Staff has reviewed the public comments and is expected to forward the 
matter to the Board within the next two months.

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 by         04/00/97

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
_______________________________________________________________________




4180. 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.
In light of the passage of The Electronic Freedom of Information Act 
Amendments of 1996 and the passage of time since the Board's proposal 
was issued for public comment, the Board will consider revising the 
regulation further, as necessary, and will again issue the proposed 
amendments for public comment. The 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. 
Further Board action is expected within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         02/28/96                     61 FR 7436
Further Board action by         04/00/97

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

[[Page 22686]]

_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                          Completed Actions


  



_______________________________________________________________________




4181. 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.
In December 1996, following review of the public comments, the Board 
considered the proposed amendment. Given the significant policy issues 
involved in removing the prohibition, the Board voted to withdraw the 
proposed amendment pending further congressional guidance (61 FR 68688, 
December 30, 1996).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         04/26/95                    60 FR 20436
Board withdrew the proposal     12/30/96                    61 FR 68688

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
_______________________________________________________________________




4182. 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 were 
adopted in February 1997 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 proposed by the Board in its overall 
review of that regulation in March 1997.
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
Proposal incorporated in final 
Regulation Y                    02/19/97
Proposal to be incorporated in 
proposed Regulation H           02/28/97

Small Entities Affected: None

Government Levels Affected: None

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

RIN: 7100-AB87
_______________________________________________________________________




4183. 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 to rescind 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. 
Because Regulation R merely restates the statutory provisions of 
section 32 (and because the only exemption included in the regulation 
is now considered unnecessary), the Board proposed to rescind the 
regulation. In addition, because section 32 does not, by its terms, 
apply to bank holding companies, the Board proposed rescinding the 
interpretation applying section 32 to these companies. The Board 
believes that allowing bank holding companies access to a larger pool 
of persons from which to choose officers, directors, and employees will 
provide some measure of regulatory relief. In October 1996, following 
review of the public comments, the Board rescinded Regulation R (61 FR 
57287, November 6, 1996). It is not anticipated that the proposal will 
have a significant economic impact on a substantial number of small 
entities. The review of Regulation R 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
Board adopted proposal          11/06/96                    61 FR 57287

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Thomas Corsi, Senior Attorney, Federal Reserve System, 
Legal Division

[[Page 22687]]

Phone: 202 452-3275

RIN: 7100-AC17
_______________________________________________________________________




4184. 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 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.
In October 1996, following review of the public comments, the Board 
approved a final rule repealing Regulation V (61 FR 52875, October 9, 
1996).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/28/96                    61 FR 26471
Board repealed the regulation   10/09/96                    61 FR 52875

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
_______________________________________________________________________




4185. REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBER: R-0935)

Priority:  Economically Significant. Major under 5 USC 801.

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. A number of other changes have also been 
proposed to eliminate unnecessary regulatory burden and to streamline 
and modernize Regulation Y.
It is expected that the proposals 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 the regulation, thereby improving the ability of 
all bank holding companies, including small organizations, to conduct 
business on a more cost-efficient basis.
In February 1997, following review of the public comments, the Board 
adopted a final rule that largely incorporated the initiatives 
contained in the proposed rule, (62 FR 9290, February 28, 1997). The 
Board did make a number of revisions in response to concerns, 
suggestions, and information provided by commenters, including changing 
in several respects the streamlined procedure governing bank 
acquisitions and the adoption of several measures designed to improve 
the public notice given of acquisition proposals. The Board also 
adopted, as part of this final rule, the interim rule regarding the 
definition of well-capitalized bank holding companies (Docket No. R-
0936).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         09/06/96                    61 FR 47241
Board adopted proposals         02/28/97                     62 FR 9290

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
_______________________________________________________________________




4186. 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). On February 26, 
1997, following review of the public comments, the Board adopted final 
amendments with minor revisions (Federal Register cite unavailable). 
The 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). Many of the amendments are designed to reduce the regulatory 
compliance burden on banks. The amendments would apply to all 
depository institutions and are not expected to have a significant 
economic impact on small institutions.

[[Page 22688]]

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         06/03/96                    61 FR 27802
Board adopted amendments        02/26/97

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
_______________________________________________________________________




4187. 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.
This proposal is being removed from the Board's Semiannual Regulatory 
Agenda, because it pertains to a service provided by the Board rather 
than a regulatory matter. Any further action on this proposal will be 
made public in the Federal Register.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment on 
Regulation Y                    09/06/96                    61 FR 47241
Proposal removed from agenda    02/28/97

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
_______________________________________________________________________




4188. 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 perform credit assessments of their 
corporate customers who 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.
This proposal is being removed from the Board's Semiannual Regulatory 
Agenda, because it pertains to a service provided by the Board rather 
than a regulatory matter. Any further action on this proposal will be 
made public in the Federal Register.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/15/95                    60 FR 42413
Proposal removed from agenda    02/28/97

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
_______________________________________________________________________




4189. 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. Major under 5 USC 801.

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

[[Page 22689]]

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 small 
bank holding companies.
In December 1996, following review of the public comments, the Board 
adopted the matter substantially as proposed (61 FR 68750, December 30, 
1996). In addition, the Board determined to eliminate its indexed 
revenue test.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         07/12/94                    59 FR 35516
Board requested further comment 08/05/96                    61 FR 40643
Board adopted proposal          12/30/96                    61 FR 68750

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
_______________________________________________________________________




4190. 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 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 expected that the proposed revisions will reduce cost barriers 
for smaller bank holding companies considering establishment of a 
section 20 subsidiary. Following review of the public comments, the 
Board repealed the cross-marketing restrictions as proposed and amended 
the interlocks and financial assets restrictions in ways similar to 
those proposed (61 FR 57679, November 7, 1996).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/05/96                    61 FR 40640
Board adopted proposals         11/07/96                    61 FR 57679

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
[FR Doc. 97-5811 Filed 04-24-97; 8:45 am]
BILLING CODE 6210-01-F