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



[[Page 62723]]

_______________________________________________________________________

Part LVIII





Federal Reserve System





_______________________________________________________________________



Semiannual Regulatory Agenda

[[Page 62724]]

FEDERAL RESERVE SYSTEM (FRS)                                     
  
_______________________________________________________________________

FEDERAL RESERVE SYSTEM

12 CFR Ch. II

Semiannual Regulatory Flexibility Agenda

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Semiannual regulatory agenda.

_______________________________________________________________________

SUMMARY: The Board is issuing this agenda under the Regulatory 
Flexibility Act and the Board's Statement of Policy Regarding Expanded 
Rulemaking Procedures. The Board anticipates having under consideration 
regulatory matters as indicated below during the period October 1, 
1998, through April 1, 1999. The next agenda will be published in April 
1999.

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 Jennifer J. Johnson, 
Secretary of the Board, Board of Governors of the Federal Reserve 
System, Washington, DC 20551.

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

SUPPLEMENTARY INFORMATION: The Board is publishing its October 1998 
agenda as part of the October 1998 Unified Agenda of Federal Regulatory 
and Deregulatory Actions, which is coordinated by the Office of 
Management and Budget under Executive Order 12866. The agenda also 
identifies rules the Board has selected for review under section 610(c) 
of the Regulatory Flexibility Act, and public comment is invited on 
those entries. Participation by the Board in the Unified Agenda is on a 
voluntary basis.

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

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

Barbara R. Lowrey,

Associate Secretary of the Board.

                                               Proposed Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4505         Regulation: B--Equal Credit Opportunity (Docket Number: R-1008)(Section 610 Review)..    7100-AC54
4506         Regulation: C--Home Mortgage Disclosure (Docket Number: R-1001)......................    7100-AC51
4507         Regulation: J--Collection of Checks and Other Items by Federal Reserve Banks; and
            Regulation: CC--Availability of Funds and Collection of Checks (Docket Number: R-1009)    7100-AC50
4508         Regulation: T--Credit by Brokers and Dealers; Regulation: U-- Credit by Banks; and
            Regulation: X--Borrowers of Securities Credit (Docket Number: R-0995).................    7100-AC45
4509         Section 303 Regulatory Review (Section 610 Review)...................................    7100-AC09
----------------------------------------------------------------------------------------------------------------


                                                Final Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4510         Regulation: B--Equal Credit Opportunity; and Regulation: Z-- Truth in Lending (Docket
            Numbers: R-1006 and R-1005)...........................................................    7100-AC46
4511         Regulation: D--Reserve Requirements of Depository Institutions (Docket Number: R-
            0956).................................................................................    7100-AC11
4512         Regulation: E--Electronic Fund Transfers (Docket Numbers: R-0919 and R-1002).........    7100-AC06
4513         Regulation: E--Electronic Fund Transfers (Docket Number: R-1007).....................    7100-AC55
4514         Regulation: H--Membership of State Banking Institutions in the Federal Reserve System
            (Docket Number: R-0950)...............................................................    7100-AC14
4515         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-0930).......................................................................    7100-AC13
4516         Regulation: H--Membership of State Banking Institutions in the Federal Reserve
            System; and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket
            No: R-0947 & R-0948)..................................................................    7100-AC29
4517         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-0982).......................................................................    7100-AC39
4518         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-0985).......................................................................    7100-AB77
4519         Regulation: K--International Banking Operations (Docket Number: R-0994)..............    7100-AC47
4520         Regulation: L--Management Official Interlocks (Docket Number: R-1013)................    7100-AC56
4521         Regulation: M--Consumer Leasing (Docket Number: R-1004)..............................    7100-AC53
4522         Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-
            0990).................................................................................    7100-AC49
4523         Regulation: DD--Truth in Savings (Docket Number: R-1003).............................    7100-AC34

[[Page 62725]]

 
4524         Applicability of Sections 23A and 23B of the Federal Reserve Act to Transactions
            Between a Member Bank and Its Subsidiaries (Docket Number: R-0977)....................    7100-AC42
4525         Applicability of Section 23A to the Purchase of Securities From Certain Affiliates
            and to Loans and Extensions of Credit Made by a Member Bank to a Third Party (Docket
            Nos.: R-1015 & R-1016)................................................................    7100-AC52
4526         Rules Regarding Availability of Information (Docket Number: R-0917)..................    7100-AC22
----------------------------------------------------------------------------------------------------------------


                                                Completed Actions
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4527         Regulation: B--Equal Credit Opportunity (Docket Number: R-0978)......................    7100-AC35
4528         Regulation: D--Reserve Requirements of Depository Institutions (Docket Number: R-
            0988).................................................................................    7100-AC48
4529         Regulation: H--Membership of State Banking Institutions in the Federal Reserve System
            (Docket Number: R-0964)...............................................................    7100-AC37
4530         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
4531         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-0976).......................................................................    7100-AC38
4532         Regulation: I--Issue and Cancellation of Capital Stock of Federal Reserve Banks
            (Docket Number: R-0966)...............................................................    7100-AC40
4533         Regulation: DD--Truth in Savings (Docket Numbers: R-0836 and R-0869).................    7100-AB80
4534         Policy Statement on Privately Operated Multilateral Settlement Systems (Docket
            Number: R-0987).......................................................................    7100-AC44
----------------------------------------------------------------------------------------------------------------

_______________________________________________________________________
FEDERAL RESERVE SYSTEM (FRS)                  Proposed Rule Stage
  
_______________________________________________________________________

4505.  REGULATION: B--EQUAL CREDIT OPPORTUNITY (DOCKET NUMBER: 
R-1008)(SECTION 610 REVIEW)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1691

CFR Citation:  12 CFR 202

Legal Deadline: None

Abstract: In March 1998, pursuant to requirements of section 303 of the 
Riegle Community Development and Regulatory Improvement Act of 1994, 
section 610(c) of the Regulatory Flexibility Act of 1994, and section 
2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 
1996, the Board approved issuing for public comment an advance notice 
of proposed rulemaking for Regulation B (63 FR 12326, March 12, 1998) 
which implements the Equal Credit Opportunity Act (the ECOA). The ECOA 
makes it unlawful for creditors to discriminate against an applicant in 
any aspect of a credit transaction on the basis of race, color, 
religion, national origin, sex, marital status, age, and other 
specified bases. The review will determine whether Regulation B should 
be revised to address technological and other developments; better 
balance consumer protections and industry burden; and delete obsolete 
provisions. To gather information necessary for this review and to 
ensure the participation of interested parties, the Board solicited 
comment on several specific issues, including preapplication marketing 
practices, inquiry versus application, data collection for nonmortgage 
credit products, and creditor liability. The Board also solicited 
comment generally on potential revisions to the regulation.
Following review of the public comments, the Board is expected to issue 
a proposed rule within the next six months. Specific proposals will 
take into account the economic impact on small entities subject to the 
Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/12/98                    63 FR 12326
Further Board action by         02/00/99

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Natalie E. Taylor, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC54
_______________________________________________________________________

4506.  REGULATION: C--HOME MORTGAGE DISCLOSURE (DOCKET NUMBER: 
R-1001)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 2801

CFR Citation:  12 CFR 203

Legal Deadline: None

Abstract: In March 1998, pursuant to requirements of section 303 of the 
Riegle Community Development and Regulatory Improvement Act of 1994 and 
section 2222 of the Economic

[[Page 62726]]

Growth and Regulatory Paperwork Reduction Act of 1996, the Board 
approved issuing for public comment an advance notice of proposed 
rulemaking for Regulation C which implements the Home Mortgage 
Disclosure Act (HMDA) (63 FR 12329, March 12, 1998). Regulation C 
requires most mortgage lenders located in metropolitan statistical 
areas to report annually to Federal agencies and disclose to the public 
information about their home purchase and home improvement lending 
activity. The review will determine whether Regulation C should be 
revised to address technological and other developments; better balance 
consumer protections and industry burden; and delete obsolete 
provisions. To gather information necessary for this review and to 
ensure the participation of interested parties, the Board is soliciting 
comment on several specific issues, while also soliciting comment 
generally on potential revisions to the regulation.
It is not anticipated that any proposed notice of rulemaking 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 by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/12/98                    63 FR 12329
Further Board action by         12/00/98

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

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

RIN: 7100-AC51
_______________________________________________________________________

4507.  REGULATION: J--COLLECTION OF CHECKS AND OTHER ITEMS BY 
FEDERAL RESERVE BANKS; AND REGULATION: CC--AVAILABILITY OF FUNDS AND 
COLLECTION OF CHECKS (DOCKET NUMBER: R-1009)

Priority:  Substantive, Nonsignificant

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

CFR Citation:  12 CFR 210; 12 CFR 229

Legal Deadline: None

Abstract: In March 1998, the Board approved issuing for public comment 
an advance notice of proposed rulemaking regarding the benefits and 
drawbacks associated with the provisions of Regulation CC that require 
a paying bank to settle with a presenting bank for checks on the same 
day the checks are presented, as long as the checks are presented by 
8:00 a.m. local time at specified locations (63 FR 12700, March 16, 
1998). The Board also requested comment on the effects of additional 
changes to Regulations J and CC to reduce the legal disparities between 
the Federal Reserve Banks and private-sector banks in the presentment 
and settlement of checks. The objective of such rule changes would be 
to promote competition in check collection services, which should 
promote efficiencies and spur innovation.
It is not anticipated that any proposed notice of rulemaking will have 
a significant economic impact on small institutions. Following review 
of the public comments, the Board is expected to take further action by 
year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/16/98                    63 FR 12700
Further Board action by         12/00/98

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

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

RIN: 7100-AC50
_______________________________________________________________________

4508. REGULATION: T--CREDIT BY BROKERS AND DEALERS; REGULATION: U--
CREDIT BY BANKS; AND REGULATION: X--BORROWERS OF SECURITIES CREDIT 
(DOCKET NUMBER: R-0995)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 78G, Securities Exchange Act of 1934, as 
amended

CFR Citation:  12 CFR 220; 12 CFR 221; 12 CFR 224

Legal Deadline: None

Abstract: As part of the regular review of its regulations and in 
accordance with requirements of section 303 of the Riegle Community 
Development and Regulatory Improvement Act of 1994 and section 610(c) 
of the Regulatory Flexibility Act of 1994, the Board is conducting a 
review of its margin regulations. In order to complete this review, the 
Board approved issuing for public comment an advance notice of proposed 
rulemaking and request for comment in December 1997 (63 FR 2840, 
January 16, 1998). The advance notice highlights issues raised by 
commenters in response to previous requests for comment that had not 
been addressed by the Board in the course of its periodic review. It 
also provides an opportunity to further harmonize the treatment of bank 
and nonbank lenders under the revised Regulation U adopted by the Board 
at the same time as the advance notice. The advance notice also invites 
comment on all areas of the regulations.
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         01/16/98                     63 FR 2840
Further Board action by         10/00/98

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

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

RIN: 7100-AC45

[[Page 62727]]

_______________________________________________________________________

4509. SECTION 303 REGULATORY REVIEW (SECTION 610 REVIEW)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 4803(a)(1); 5 USC 610

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.
Items below indicated with an asterisk are also being reviewed by the 
Board in accordance with the periodic review requirements of section 
610(c) of the Regulatory Flexibility Act.
Within the next twelve months, it is expected that the Board will seek 
public comment during the course of the reviews of the following 
regulations/policy statements/other regulatory guidance. Reviews 
already proposed for public comment appear elsewhere in the Agenda.
Regulations H and Y, Appendices, Capital Adequacy Guidelines.
*Regulation Z, Truth in Lending.
*Regulation DD, Truth in Savings.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board action expected during the 
next twelve months              09/00/99

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Barbara R. Lowrey, Associate Secretary, Federal Reserve 
System, Office of the Secretary
Phone: 202 452-3742

RIN: 7100-AC09
_______________________________________________________________________
FEDERAL RESERVE SYSTEM (FRS)                     Final Rule Stage
  
_______________________________________________________________________

4510. REGULATION: B--EQUAL CREDIT OPPORTUNITY; AND REGULATION: Z--TRUTH 
IN LENDING (DOCKET NUMBERS: R-1006 AND R-1005)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1601 et seq; 12 USC 4301 et seq

CFR Citation:  12 CFR 202; 12 CFR 213; 12 CFR 226; 12 CFR 230

Legal Deadline: None

Abstract: In March 1998, the Board issued for public comment proposals 
to amend its consumer regulations, B (Equal Credit Opportunity), and Z 
(Truth in Lending), to permit electronic communications to substitute 
generally for oral or written disclosures, documentation, and notices 
required under the individual regulations (63 FR 14548, March 25, 
1998). Comment was also requested on similar amendments to Regulations 
M (Consumer Leasing) and DD (Truth in Savings) described in separate 
entries in the Agenda (see Docket Numbers R-1004 and R-1003). At the 
same time, similar amendments to Regulation E, proposed as part of the 
Board's overall review of its regulations as required by section 303 of 
the Riegle Community Development and Regulatory Improvement Act of 
1994, were adopted as an interim rule (Docket Number: R-0919; RIN: 
7100-AC06). The Board identified the use of electronic communication 
between consumers and financial institutions as an area that offered an 
opportunity to reduce regulatory compliance burden without adversely 
affecting consumer protections.
It is not expected that the proposals would have a significant economic 
impact on small institutions. Following review of the public comments, 
the Board is expected to take further action within the next two 
months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14548
Further Board action by         10/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Michael Hentrel, Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC46
_______________________________________________________________________

4511. REGULATION: D--RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 
(DOCKET NUMBER: R-0956)

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 December 1996, 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 1996 proposal to simplify Regulation D. The proposal would 
also make conforming changes to the definition of ``transaction 
account'' (61 FR 96054, December 31, 1996). No substantive change in 
the regulation is intended. 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 during the next year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/31/96                    61 FR 69054
Further Board action by         07/00/99

[[Page 62728]]

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC11
_______________________________________________________________________

4512. REGULATION: E--ELECTRONIC FUND TRANSFERS (DOCKET NUMBERS: R-0919 
AND R-1002)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1693 et seq

CFR Citation:  12 CFR 205

Legal Deadline: None

Abstract: In May 1996, the Board issued for public comment proposed 
amendments to Regulation E imposing modified requirements on stored-
value products in systems that track individual transactions, cards, or 
consumers and providing an exemption for cards on which a maximum value 
of $100 can be stored (Docket No. R-0919; 61 FR 19696, May 2, 1996).
The Board also proposed extending the error resolution time limits for 
new accounts and permitting electronic communications to substitute 
generally for oral or written disclosures documentation, and notices 
required under Regulation E.
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 and section 610(c) of the Regulatory 
Flexibility Act of 1994. It is not expected that the proposals would 
have a significant economic impact on small institutions.
In March 1998, following review of the public comments, the Board 
issued an interim rule, with request for comments, to permit electronic 
communications to substitute for disclosures, documentation, and 
notices under regulation E (Docket No. R-1002; 63 FR 14528, March 25, 
1998). It is anticipated that the Board will take further action on the 
electronic communications rule, as well as on the new account proposal, 
within the next two months. Action on the stored-value card amendment 
is expected by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/02/96                    61 FR 19696
Board adopted interim rule      03/25/98                    63 FR 14528
Further Board action by         10/00/98

Regulatory Flexibility Analysis Required: No

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
_______________________________________________________________________

4513.  REGULATION: E--ELECTRONIC FUND TRANSFERS (DOCKET NUMBER: 
R-1007)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1693 et seq

CFR Citation:  12 CFR 205

Legal Deadline: None

Abstract: In March 1998, the Board issued for public comment proposed 
amendments to Regulation E to eliminate the extended time periods for 
investigating error claims involving point-of-sale (POS) debit card and 
foreign-initiated electronic fund transfers (63 FR 14555, March 25, 
1998). Under Regulation E, financial institutions generally have 10 
business days to provisionally credit an account and up to 45 calendar 
days to complete an investigation of a claimed error involving an 
electronic fund transfer to or from a consumer account. For POS and 
foreign transactions, institutions have up to 20 business days to 
provisionally credit an account and up to 90 calendar days to complete 
the investigation. The proposed rule also contains a technical 
amendment to a model form.
It is not expected that the proposals will have a significant economic 
impact on a substantial number of small institutions. It is anticipated 
that the Board will take further action on the proposals within the 
next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14555
Further Board action by         10/00/98

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

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-AC55
_______________________________________________________________________

4514. 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 and coordination with the other 
agencies, 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         10/00/98

[[Page 62729]]

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Angela Desmond, Senior Counsel, Federal Reserve System, 
Division of Banking Supervision and Regulation
Phone: 202 452-3497

RIN: 7100-AC14
_______________________________________________________________________

4515. 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-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 year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/16/96                    61 FR 42565
Further Board action by         12/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC13
_______________________________________________________________________

4516. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NO: R-0947 & R-0948)

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: In October 1997, the Board issued 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 (62 FR 55686, October 27, 1997). 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 the definition of a well-capitalized 
bank holding company for expedited applications purposes.
The proposals were issued 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. In June 1998, following review of the public comments, the 
Board adopted the proposed revisions to the bank holding company 
leverage ratio (63 FR 30369, June 4, 1998). Action by the Board and 
other agencies on the proposals for banks and thrifts is expected 
within the next two months. The proposed changes will not have a 
significant economic impact on a substantial number of small entities 
subject to the Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         10/27/97                    62 FR 55686
Board adopted bank holding 
company proposal                06/04/98                    63 FR 30369
Further Board action by         10/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Kirk Odegard, Senior Financial Analyst, Federal Reserve 
System, Division of Banking Supervision and Regulation
Phone: 202 530-6225

RIN: 7100-AC29
_______________________________________________________________________

4517. 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-0982)

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 225 app A

Legal Deadline: None

Abstract: In October 1997, as part of a joint interagency proposal, the 
Board requested public comment on revisions to the Federal Reserve's 
risk-based capital guidelines to permit certain

[[Page 62730]]

revaluation gains on equity securities in Tier 2 capital (62 FR 55682, 
October 27, 1997). Under the proposal an institution would be permitted 
to include in Tier 2 capital up to 45 percent of its unrealized 
revaluation gains on prudently valued equity securities. This treatment 
is consistent with the Basel Accord.
Following review of the public comments, the Board is expected to take 
further action within the next two months. It is not expected that the 
proposal, if adopted as a final rule, would have a significant economic 
impact on a substantial number of small entities subject to the Board's 
regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         10/27/97                    62 FR 55682
Further Board action by         10/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC39
_______________________________________________________________________

4518. 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-0985)

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). 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.
Subsequent to the issuance of this proposal, the Board issued a 
regulation limiting 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 (60 FR 8177, February 13, 1995).
In November 1997, the Board requested public comment on a revised 
proposal that sets forth the definitions and capital treatments 
discussed above (62 FR 59944, November 5, 1997). In addition, the 
proposal requests comment on several alternative approaches to 
assessing capital against asset securitizations including the use of 
internal bank information.
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 on small institutions. Following review of 
the public comments, the Board is expected to take further action by 
year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/25/94                    59 FR 27115
Board adopted one aspect of the 
proposal                        02/13/95                     60 FR 8177
Board requested comment         11/05/97                    62 FR 59944
Further Board action by         12/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AB77
_______________________________________________________________________

4519. REGULATION: K--INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-
0994)

Priority:  Substantive, Nonsignificant. Major under 5 USC 801.

Legal Authority:  12 USC 221 et seq; 12 USC 248(i); 12 USC 248(k); 12 
USC 1818; 12 USC 1835a; 12 USC 1841 et seq; 12 USC 3101 et seq; 12 USC 
3109 et seq

CFR Citation:  12 CFR 211

Legal Deadline: None

Abstract: In December 1997, consistent with section 303 of the Riegle 
Community Development and Regulatory Improvement Act of 1994, the 
International Banking Act of 1978, and section 2222 of the Economic 
Growth and Regulatory Paperwork Reduction Act of 1996, the Board 
reviewed and proposed for public comment a number of changes to 
Regulation K which governs international banking operations (62 FR 
68424 December 31, 1997). Subpart A of Regulation K governs the foreign 
investments and activities of all member banks. The proposed amendments 
include streamlined foreign branching procedures for U.S. banking 
organizations, authorization of expanded activities in foreign branches 
of U.S. banks, and expansion of the authority of U.S. banking 
organizations to engage in equity dealing and underwriting and to make 
venture capital investments outside the United States. Subpart B of 
Regulation K governs the U.S. activities of foreign banking 
organizations. The proposed amendments include revisions aimed at 
streamlining the applications procedures applicable to foreign banks 
seeking to expand operations in the United States, changes to 
provisions regarding the qualification of certain foreign banking 
organizations for exemption from the nonbanking prohibitions of section 
4 of the Bank Holding Company Act, and implementation of provisions of 
the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 
that affect foreign banks. In addition, a

[[Page 62731]]

number of technical and clarifying amendments to subparts A and B, as 
well as to subpart C which governs export trading companies, and 
certain amendments to the Board's Rules Regarding Delegation of 
Authority have been proposed.
The proposed amendments are 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 
within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/31/97                    62 FR 68424
Further Board action by         10/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Kathleen M. O'Day, Associate General Counsel, Federal 
Reserve System, Legal Division
Phone: 202 452-3786

RIN: 7100-AC47
_______________________________________________________________________

4520.  REGULATION: L--MANAGEMENT OFFICIAL INTERLOCKS (DOCKET 
NUMBER: R-1013)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 3201 et seq

CFR Citation:  12 CFR 212

Legal Deadline: None

Abstract: In August 1998, the Board, along with the other Federal 
depository institution regulatory agencies, approved issuing for public 
comment a proposal to amend regulations, including the Board's 
Regulation L, governing depository institution management interlocks to 
reflect certain statutory changes (63 FR 43051, August 11, 1998). In 
addition to implementing these statutory changes, the agencies also 
proposed a small market share exemption for institutions that, on a 
combined basis, control less than 20 percent of the deposits in a 
community or relevant metropolitan statistical area. The exemption is 
intended to enlarge the pool of management talent upon which depository 
institutions may draw and thereby enhance the competitiveness of these 
institutions.
It is not anticipated that the proposal will have a significant 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         08/11/98                    63 FR 43051
Further Board action by         02/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC56
_______________________________________________________________________

4521.  REGULATION: M--CONSUMER LEASING (DOCKET NUMBER: R-1004)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1667

CFR Citation:  12 CFR 213

Legal Deadline: None

Abstract: As part of the Board's overall review of its regulations 
under section 610(c) of the Regulatory Flexibility Act of 1994 and 
section 303 of the Riegle Community Development and Regulatory 
Improvement Act of 1994, the Board determined that the use of 
electronic communications to deliver information to consumers that is 
required by Federal consumer financial services and fair lending laws 
could effectively reduce regulatory compliance burden without adversely 
affecting consumer protections. In March 1998, the Board approved 
issuing for public comment a proposal to amend Regulation M that would 
allow lessors to deliver by electronic communication the disclosures 
required by the act and regulation, if the consumer agrees to such 
delivery (63 FR 14538, March 25, 1998). In addition, the proposal 
contains several technical amendments that would be made to the 
regulation and commentary.
It is not anticipated that the proposal will have any significant 
economic impact on small entities. The proposed rule would relieve 
compliance burden and give lessors flexibility in providing 
disclosures. 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         03/25/98                    63 FR 14538
Further Board action by         10/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Obrea O. Poindexter, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC53
_______________________________________________________________________

4522. REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBER: R-0990)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1817(j)(13); 12 USC 1818; 12 USC 1828o; 12 USC 
1831i; 12 USC 1831p-1; 12 USC 1843(c)(8); 12 USC 1844(b); 12 USC 
1972(1); 12 USC 3106; 12 USC 3108; 12 USC 3310; 12 USC 3331 to 3351; 12 
USC 3907; 12 USC 3909

CFR Citation:  12 CFR 225

Legal Deadline: None

Abstract: In December 1997, the Board approved issuing for public 
comment a proposal to exempt any transaction involving the underwriting 
or dealing of mortgage-backed securities from the Board's appraisal 
requirements (62 FR 64997, December 9, 1997). This amendment would 
permit a nonbank subsidiary of a bank holding company engaged in 
underwriting and dealing in securities (a so-called section 20 
subsidiary) to underwrite and deal in mortgage-backed securities 
without demonstrating that the loans underlying the securities are 
supported by appraisals that meet the Board's appraisal requirements. 
As the proposal notes, the Board believes the public rating or due 
diligence that the market requires for mortgage-backed securities 
provides information that is at least as sufficient for assessing risks 
as new appraisals for the underlying loans. The Board proposed this 
amendment to

[[Page 62732]]

address concerns raised by bank holding companies regarding the 
inability of section 20 subsidiaries to actively participate in the 
commercial mortgage-backed securities market due to the appraisal 
restrictions of subpart G.
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         12/09/97                    62 FR 64997
Further Board action by         10/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Mark E. Van Der Weide, Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-2263

RIN: 7100-AC49
_______________________________________________________________________

4523. REGULATION: DD--TRUTH IN SAVINGS (DOCKET NUMBER: R-1003)

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. In March 1998, the Board issued for public comment a proposal 
that would implement the statutory changes (63 FR 14533, March 25, 
1998). The proposal would also allow depository institutions to deliver 
by electronic communication disclosures required by the act and 
regulation, if the consumer agrees to such delivery.
It is not expected that there will be a significant economic impact on 
small institutions. Following review of the public comments, the Board 
is expected to take further action within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14533
Further Board action by         10/00/98

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Obrea O. Poindexter, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC34
_______________________________________________________________________

4524. APPLICABILITY OF SECTIONS 23A AND 23B OF THE FEDERAL RESERVE ACT 
TO TRANSACTIONS BETWEEN A MEMBER BANK AND ITS SUBSIDIARIES (DOCKET 
NUMBER: R-0977)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 371c(b)(1)(E)

CFR Citation:  12 CFR 250.243

Legal Deadline: None

Abstract: Sections 23A and 23B of the Federal Reserve Act restrict the 
ability of a member bank to fund an affiliate through direct 
investment, loans, or other transactions. In July 1997, the Board 
issued for public comment a proposal to apply sections 23A and 23B to 
transactions between a member bank and any subsidiary that engages in 
activities that are impermissible for the bank itself and that Congress 
has not previously exempted from coverage by section 23A (62 FR 37744, 
July 15, 1997). The proposed treatment is largely consistent with the 
existing treatment of these subsidiaries by the other banking agencies, 
which have applied sections 23A and 23B in some form to transactions 
between a bank and such subsidiaries. The issuance of the proposals 
will avoid the application of sections 23A and 23B on an ad hoc basis 
by different agencies, which could result in confusion and 
inconsistencies.
The proposal is not expected to have a significant economic impact on a 
substantial number of small businesses. Following review of the public 
comments, the Board is expected to take further action during the next 
six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         07/15/97                    62 FR 37744
Further Board action by         02/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: State, Federal

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

RIN: 7100-AC42
_______________________________________________________________________

4525.  APPLICABILITY OF SECTION 23A TO THE PURCHASE OF 
SECURITIES FROM CERTAIN AFFILIATES AND TO LOANS AND EXTENSIONS OF CREDIT 
MADE BY A MEMBER BANK TO A THIRD PARTY (DOCKET NOS.: R-1015 & R-1016)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 371c

CFR Citation:  12 CFR 250

Legal Deadline: None

Abstract: In June 1998, the Board issued for public comment two 
proposed rules to exempt certain transactions from the restrictions of 
section 23A of the Federal Reserve Act (63 FR 32766, June 16, 1998). 
Section 23A restricts the ability of a member bank to fund its 
affiliates through direct investment, loans, or certain other 
transactions (covered transactions). These proposals are in response to 
concerns raised by organizations when the Board earlier proposed 
removal of certain firewalls between insured depository institutions 
and their section 20 securities affiliates. Several petitioners stated 
then that although the removal of the firewalls was welcomed, section 
23A continued to limit certain transactions with their section 20 
subsidiaries that do not raise significant safety and soundness issues 
and

[[Page 62733]]

impeded the efficient operation of the insured depository institutions.
In Docket Number R-1015, the Board is proposing to expand the kind of 
assets that may be eligible for the (d)(6) exemption to include 
securities that, although not so widely traded as to warrant 
publication of their activity in publications of general circulation, 
are actively traded and whose price can be obtained from independent 
reliable sources, if the securities are purchased from a registered 
broker-dealer.
In Docket Number R-1016, the Board is proposing to grant two exemptions 
from section 23A for certain loans and extension of credit made by an 
insured depository institution to customers that use the proceeds to 
purchase certain securities from or through the depository 
institution's registered broker-dealer affiliate. The first exemption 
would apply when the affiliate is acting solely as a broker or riskless 
principal in the securities transaction. The second exemption would 
apply when the extension of credit is made pursuant to a pre-existing 
line of credit that was not established for the purposes of buying 
securities from or through an affiliate.
Following review of the public comments, the Board is expected to take 
further action within the next three months. It is not anticipated that 
the proposals will have a significant economic impact on a substantial 
number of small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         06/16/98                    63 FR 32766
Further Board action by         11/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC52
_______________________________________________________________________

4526. 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 time since the Board's February 1996 
proposal was issued for public comment, the Board will make changes in 
that proposal based on the comments received and will reissue revised 
proposed amendments for further comment. The February 1996 proposal 
deals primarily with the discretionary authority of the Board's General 
Counsel to produce information. These 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 on the remainder of the regulation is 
expected by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         02/28/96                     61 FR 7436
Further Board action by         12/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC22
_______________________________________________________________________
FEDERAL RESERVE SYSTEM (FRS)                    Completed Actions
  
_______________________________________________________________________

4527. REGULATION: B--EQUAL CREDIT OPPORTUNITY (DOCKET NUMBER: R-0978)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1691

CFR Citation:  12 CFR 202

Legal Deadline: None

Abstract: Regulation B requires creditors to provide a consumer with a 
notice of action taken if an application for credit is denied, an 
account is terminated, or the terms of an account are unfavorably 
changed. The Fair Credit Reporting Act (FCRA) requires creditors that 
take adverse action against a consumer, such as denying an application 
for credit, to provide the consumer with certain disclosures if the 
action is based on a credit report provided by a consumer reporting 
agency or information obtained from a third party. Creditors have the 
option of including the FCRA disclosures with the notice of action 
taken required under Regulation B; appendix C to Regulation B provides 
model forms that combine the current FCRA and Equal Credit Opportunity 
Act disclosures.
The Economic Growth and Regulatory Paperwork Reduction Act of 1996 made 
extensive changes to the FCRA, including a requirement that additional 
disclosures be given to consumers who are denied credit. In July 1997, 
the Board requested public comment on proposed changes to the FCRA 
portion of Regulation B's model forms C-1 through C-5 and to the 
general instructions for these forms (62 FR 37166, July 11, 1997). In 
April 1998, following review of the public comments, the Board adopted 
final amended model forms to ease compliance for creditors that choose 
to

[[Page 62734]]

use the forms (63 FR 16392, April 3, 1998). The Board deferred final 
action on which disclosures should be provided when adverse action is 
based on information in a consumer report obtained from an affiliate. 
The Board determined that this issue merits further consideration and 
would be more appropriately addressed in an interpretation of the FCRA, 
likely issued jointly with the Federal Trade Commission. The proposals 
are not expected to have a significant economic impact on small 
entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         07/11/97                    62 FR 37166
Board took final action         04/03/98                    63 FR 16392

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC35
_______________________________________________________________________

4528. REGULATION: D--RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 
(DOCKET NUMBER: R-0988)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 461

CFR Citation:  12 CFR 4

Legal Deadline: None

Abstract: In November 1997, the Board approved issuing for public 
comment a proposal to move from the current system of contemporaneous 
reserve maintenance for institutions that are weekly reporters to a 
system under which reserves are maintained on a lagged basis by such 
institutions (62 FR 60671, November 12, 1997). Under a lagged 
maintenance system, the reserve maintenance period for a weekly 
reporter will begin 30 days after the beginning of a reserve 
computation period. Under the current system, the reserve maintenance 
period begins two days after the beginning of the computation period. 
The Board is considering this action to improve the ability of the 
Federal Reserve to estimate accurately the need for reserves on a 
timely basis to ensure greater effectiveness of the Federal Reserve's 
open market operations.
The proposal will affect only those institutions that are weekly 
deposit reporters, which generally include depository institutions that 
have total deposits of $75 million or greater as these are the only 
institutions currently required to maintain contemporaneous reserves on 
a contemporaneous basis. For those institutions that are weekly 
reporters, the proposed amendments generally would simplify compliance 
with reserve requirements for these institutions.
In March 1998, following review of the public comments, the Board 
adopted the amendments substantially as proposed (63 FR 15069, March 
30, 1998). The proposal is not expected to have a significant economic 
impact on small institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         11/12/97                    62 FR 60671
Board adopted proposal          03/30/98                    63 FR 15069

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC48
_______________________________________________________________________

4529. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-0964)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 24; 12 USC 36; 12 USC 248(a); 12 USC 248(c); 
12 USC 321 to 338a; 12 USC 481 to 486; 12 USC 601; 12 USC 611; 12 USC 
1814; 12 USC 1816; 12 USC 1818; 12 USC 1820(d)(9); 12 USC 1823(j); 12 
USC 1828(o); 12 USC 1831(o); ...

CFR Citation:  12 CFR 208

Legal Deadline: None

Abstract: In March 1997, the Board issued for public comment proposed 
amendments to subpart A of Regulation H regarding the general 
provisions for membership in the Federal Reserve System and subpart E, 
Interpretations of Regulation H (62 FR 15272, March 31, 1997). The 
proposed amendments reduce regulatory burden and simplify and update 
requirements of Regulation H.
The amended subpart A of Regulation H will, when fully effective, 
replace the existing subpart A in its entirety; it will also eliminate 
several obsolete interpretations. Also, as part of the revisions, the 
Board is rescinding Regulation P Security Procedures, and incorporating 
its provisions into Regulation H (Docket Number R-0965). The proposal 
to modernize subpart A of Regulation H is in accordance with the 
Board's review of regulations under section 303 of the Riegle Community 
Development and Regulatory Improvement Act of 1994. Consistent with the 
objectives of the Regulatory Flexibility Act, it is expected that the 
proposed changes will reduce the time and costs associated with 
complying with Regulation H, thereby improving the ability of small 
banks to conduct business on a more cost-efficient basis.
In June 1998, following review of the public comments, the Board 
adopted the proposals substantially as proposed (63 FR 37630, July 13, 
1998).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment on 
Regulations H and P             03/31/97                    62 FR 15272
Board adopted proposals         07/13/98                    63 FR 37630

Regulatory Flexibility Analysis Required: Yes
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Jean Anderson, Staff Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-3707

RIN: 7100-AC37
_______________________________________________________________________

4530. 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

[[Page 62735]]

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. Further action is 
not expected within the next six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Action is not expected within 
the - next six months           08/21/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Richard A. Small, Assistant Director, Federal Reserve 
System, Division of Banking Supervision and Regulation
Phone: 202 452-5235

RIN: 7100-AB39
_______________________________________________________________________

4531. 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-0976)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 24; 12 USC 36; 12 USC 92(a); 12 USC 93(a); 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; ...

CFR Citation:  12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In July 1997, the Board approved issuing for public comment a 
proposal to revise the risk-based and Tier 1 leverage capital adequacy 
guidelines for State member banks and bank holding companies to address 
the treatment of servicing assets on both mortgage assets and financial 
assets other than mortgages (non-mortgages) (62 FR 42006, August 4, 
1997). The proposed rule was developed in response to a recent 
Financial Accounting Standards Board accounting standard that affects 
servicing assets; that is, Statement of Financial Accounting Standards 
No. 125, ``Accounting For Transfers and Servicing of Financial Assets 
and Extinguishments of Liabilities'' issued in June 1996. Under this 
proposed rule, the limitation on the amount of mortgage servicing 
assets (and purchased credit card relationships) that can be recognized 
as a percent of Tier 1 capital would be increased from 50 to 100 
percent. Also, all non-mortgage servicing assets would be fully 
deducted from Tier 1 capital. This proposal is a joint proposal of the 
Board, the Federal Deposit Insurance Corporation, the Office of the 
Comptroller of the Currency, and the Office of Thrift Supervision.
It is not anticipated that the proposal will have a significant 
economic impact on a substantial number of small entities subject to 
the Board's regulation. In August 1998, following review of the public 
comments, the Board adopted the proposal with the following changes: 
(1) all interest-only strips receivable will be included in Tier 1 
capital on an unlimited basis; (2) non-mortgage servicing assets will 
be subject to the same 100 percent of Tier 1 capital limitation as 
mortgage servicing assets and purchased credit card relationships 
(PCCRs); (3) non-mortgage servicing assets will be also subject to a 
further sublimit of 25 percent of Tier 1 capital, the same sublimit as 
PCCRs; and (4) the 90 percent of fair value limitation, which is 
currently applied to mortgage servicing assets and PCCRs, will be 
extended to non-mortgage servicing assets (63 FR 42667, August 10, 
1998).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/04/97                    62 FR 42006
Board adopted proposal          08/10/98                    63 FR 42667

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC38
_______________________________________________________________________

4532. REGULATION: I--ISSUE AND CANCELLATION OF CAPITAL STOCK OF FEDERAL 
RESERVE BANKS (DOCKET NUMBER: R-0966)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 222; 12 USC 282; 12 USC 286 to 288; 12 USC 
321; 12 USC 323; 12 USC 327 to 328; 12 USC 333

CFR Citation:  12 CFR 209

Legal Deadline: None

Abstract: In March 1997, the Board issued for public comment proposed 
amendments to Regulation I to reduce regulatory burden and simplify and 
update the regulation (62 FR 15297, March 31, 1997). The proposals are 
a part of the Board's overall review of its regulations under section 
303 of the Riegle Community Development and Regulatory Improvement Act 
of 1994. In general, the amendments condense the regulation and reflect 
the

[[Page 62736]]

replacement of share certificates by a book-entry system. The proposal 
also codifies Board and staff interpretations. Finally, the amendments 
delete references to specific obsolete forms or forms which no longer 
have the same identification numbers.
The proposal would apply to all Federal Reserve Banks and member banks 
regardless of size and, as consistent with the objectives of the 
Regulatory Flexibility Act, would be burden-reducing. Therefore, the 
proposal would not have a significant adverse economic impact on a 
substantial number of small entities. In July 1998, following review of 
the public comments, the Board adopted the revisions substantially as 
proposed (63 FR 37659, July 13, 1998).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/31/97                    62 FR 15297
Board adopted proposal          07/13/98                    63 FR 37659

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC40
_______________________________________________________________________

4533. REGULATION: DD--TRUTH IN SAVINGS (DOCKET NUMBERS: 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). In July 1998, following review of the public comments, 
the Board amended Regulation DD to make the interim rule final (63 FR 
40635, July 30, 1998).
The amendments, which provide institutions an alternative method for 
calculating and disclosing the annual percentage yield for certain time 
accounts, are not likely to have a significant impact on institutions' 
costs, including the costs to small institutions.

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
Board adopted interim rule in 
final                           07/30/98                    63 FR 40635

Regulatory Flexibility Analysis Required: Yes
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Obrea O. Poindexter, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AB80
_______________________________________________________________________

4534. POLICY STATEMENT ON PRIVATELY OPERATED MULTILATERAL SETTLEMENT 
SYSTEMS (DOCKET NUMBER: R-0987)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 221 et seq

CFR Citation:  None

Legal Deadline: None

Abstract: In November 1997, the Board requested comment on a proposed 
policy statement on privately operated multilateral settlement systems 
to integrate current policy statements and new provisions (62 FR 60713, 
November 12, 1997). The policy would require privately operated 
multilateral settlement systems for U.S. dollar payments to address 
material credit, liquidity operational, legal, and systemic risks, 
thereby enhancing the safety and soundness of the payments system. In 
June 1998, following review of the public comments, the Board adopted a 
revised version of its proposed policy (63 FR 34888, June 26, 1998). 
The policy largely retains the risk criteria of the proposal but 
applies only to large systems that settle payments with an aggregate 
gross value of more than $5 billion on any day.
The policy is designed to minimize regulatory burden on small 
arrangements that do not raise material risks and will not have a 
significant economic impact on a substantial number of small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         11/12/97                    62 FR 60713
Board adopted policy            06/26/98                    63 FR 34888

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Paul Bettge, Assistant Director, Federal Reserve 
System, Division of Reserve Bank Operations and Payment Systems
Phone: 202 452-3174

RIN: 7100-AC44
[FR Doc. 98-23555 Filed 11-06-98; 8:45 am]
BILLING CODE 6210-01-F