[Federal Register Volume 60, Number 143 (Wednesday, July 26, 1995)] [Notices] [Pages 38339-38342] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 95-18314] ======================================================================= ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM Agency Forms Under Review AGENCY: Board of Governors of the Federal Reserve System. ACTION: Notice. ----------------------------------------------------------------------- [[Page 38340]] Background: On June 15, 1984, the Office of Management and Budget (OMB) delegated to the Board of Governors of the Federal Reserve System (Board) its approval authority under the Paperwork Reduction Act of 1980, as per 5 CFR 1320.9, to approve of and assign OMB control numbers to collection of information requests and requirements conducted or sponsored by the Board under conditions set forth in 5 CFR 1320.9. Board-approved collections of information will be incorporated into the official OMB inventory of currently approved collections of information. A copy of the OMB 83-I and supporting statement and the approved collection of information instruments will be placed into OMB's public docket files. The following forms, which are being handled under this delegated authority, have received initial Board approval and are hereby published for comment. At the end of the comment period, the proposed information collection, along with an analysis of comments and recommendations received, will be submitted to the Board for final approval under OMB delegated authority. DATES: Comments must be submitted on or before August 21, 1995. ADDRESSES: Comments, which should refer to the OMB Docket number (or Agency form number in the case of a new information collection that has not yet been assigned an OMB number), should be addressed to Mr. William W. Wiles, Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, N.W., Washington, DC 20551, or delivered to the Board's mail room between 8:45 a.m. and 5:15 p.m., and to the security control room outside of those hours. Both the mail room and the security control room are accessible from the courtyard entrance on 20th Street between Constitution Avenue and C Street, N.W. Comments received may be inspected in room M-P-500 between 9:00 a.m. and 5:00 p.m., except as provided in section 261.8 of the Board's Rules Regarding Availability of Information, 12 CFR 261.8(a). A copy of the comments may also be submitted to the OMB desk officer for the Board: Milo Sunderhauf, Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 3208, Washington, DC 20503. FOR FURTHER INFORMATION CONTACT: A copy of the proposed form and instructions, the Paperwork Reduction Act Submission (OMB 83-I), supporting statement, and other documents that will be placed into OMB's public docket files once approved may be requested from the agency clearance officer, Mary M. McLaughlin, Federal Reserve Board Clearance Officer (202-452-3829), Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, DC 20551. For the hearing impaired only, Telecommunications Device for the Deaf (TDD) Dorothea Thompson (202-452-3544), Board of Governors of the Federal Reserve System, Washington, DC 20551. Proposal to approve under OMB delegated authority the extension, with revision, of the following reports: 1. Report title: Report of Commercial Paper Outstanding Placed by Brokers and Dealers (FR 2957a); Report of Commercial Paper Outstanding Placed Directly by Issuers (FR 2957b); Daily Report of Offering Rates on Commercial Paper (FR 2957d) Agency form numbers: FR 2957a, b, and d OMB Docket number: 7100-0002 Frequency: Daily, weekly, and monthly Reporters: Brokers and dealers and direct issuers of commercial paper Annual reporting hours: 1,858 Estimated average hours per response: 0.20 to 0.75 Number of respondents: 68 Small businesses are not affected. General description of report: This information collection is voluntary and is authorized by law [12 U.S.C. Sec. 225(a), 263, 353, and 461]. The FR 2957a and b are confidential [5 U.S.C. Sec. 552(b)(4)]. Abstract: These reports provide information on the amounts outstanding of and selected offering rates on commercial paper, which the Federal Reserve uses to gauge the aggregate flow of funds and to determine the composition of short-term financing components in credit markets. 2. Report title: International Applications and Prior Notifications under Subparts A and C of Regulation K Agency form number: FR K-1 OMB Docket number: 7100-0107 Frequency: On occasion Reporters: State member and national banks, Edge and corporations, and bank holding companies Annual reporting hours: 440 Estimated average hours per response: Varies from 10 to 20 hours Number of respondents: 38 Small businesses are not affected. General description of report: This information collection is required (sections 25 and 25A of the Federal Reserve Act (12 U.S.C. 601-604(a) and 611-631), and the Bank Holding Company Act (12 U.S.C. 1843(c)(13), 1843(c)(14), and 1844(c))). The applying organization has the opportunity to request confidentiality for information that it believes will qualify for a Freedom of Information Act exemption. Abstract: The FR K-1 is a compilation of all the applications and prior notification requirements in Regulation K that govern the formation of Edge and Agreement corporations and the international and foreign activities of U.S. banking organizations. The proposed revisions include the addition of one item, expansion of an existing item, and clarifications to the reporting instructions. The Federal Reserve proposes adding a new item that will require foreign banking organizations that are seeking to either establish or acquire control of an existing Edge corporation to furnish information relating to the supervision and regulation of the foreign banking organization by its home country supervisor, as well as information to allow the Federal Reserve to determine whether the foreign banking organization will be able to provide whatever information is deemed necessary to determine and enforce compliance with U.S. law. This is the same type of information that a foreign banking institution must provide (pursuant to the Foreign Bank Supervision Enhancement Act of 1991) in order to acquire ownership or control of a subsidiary bank or commercial lending company or to establish a branch or agency in the United States. The Federal Reserve proposes that Attachment H require applicants seeking to engage in any activity that the Federal Reserve has not previously determined to be of a banking or financial nature to discuss the extent to which such activity is usual in connection with the transaction of banking or other financial operations in the country in which the activity is to be conducted, supported by examples. The proposed revision to item 2.f. would enable the Federal Reserve to determine whether a proposed new activity is usual in connection with the transaction of the business of banking or other financial operations abroad, as the Federal Reserve is required to do under section 211.5(d)(20) of Regulation K. 3. Report title: Bank Holding Company Report of Investments and Activities Agency form number: FR Y-6A OMB Docket number: 7100-0124 Frequency: Event generated Reporters: Bank Holding Companies Annual reporting hours: 11,000 Estimated average hours per response: 1.0 Number of respondents: 1,746 Small businesses are not affected. [[Page 38341]] General description of report: This information collection is mandatory [(12 U.S.C. 1844(b) and (c))] and is not routinely given confidential treatment. However, confidential treatment for the report information can be requested, in whole or part, in accordance with the instructions to the form. Abstract: The Bank Holding Company Report of Changes in Investments and Activities is an event-generated report filed by top-tier bank holding companies to report changes in regulated investments and activities made pursuant to the Bank Holding Company Act and Regulation Y. The report collects information relating to acquisitions, divestitures, changes in activities, and legal authority. The response rate for the FR Y-6A varies depending on the reportable activity engaged in by each bank holding company. The Federal Reserve proposes the following revisions to the FR Y- 6A: (1) Modify the reporting threshold to collect data from those bank holding companies that control 25 percent or more of any class of non- voting equity of a bank or bank holding company. The current FR Y-6A reporting threshold applies where the bank holding company controls in excess of 25 percent of any class of non-voting equity. (2) Eliminate the requirement to report investments in Edge and agreement corporations. This information will be proposed to be reported on the Report of Changes in Foreign Investments (FR 2064; OMB No. 7100-0109). (3) Reformat the Investments Schedule to show one investment transaction and one activities transaction on each report page. (4) Make certain clarifications to the reporting instructions. Proposal to approve under OMB delegated authority the extension, without revision, of the following reports: 1. Report title: Annual Daylight Overdraft Capital Report for U.S. Branches and Agencies of Foreign Banks Agency form number: FR 2225 Market number: 7100-0216 Frequency: Annual Reporters: U.S. branches and agencies of foreign banks Annual reporting hours: 240 Estimated average hours per response: 1.0 Number of respondents: 240 Small businesses are not affected. General description of report: This information collection is voluntary (sections 11(i), 16, and 19(f) of the Federal Reserve Act). The FR 2225 is a public report subject to the right of individual reporters to request confidential treatment on an ad hoc basis for particular items. Abstract: This report was implemented in March 1986 as part of the procedures used to administer the Federal Reserve's Payments System Risk policy. The report provides the Federal Reserve with the foreign bank's worldwide capital figure which, in connection with a net debit cap multiple, is used to calculate the bank's daylight overdraft limit. Under the Federal Reserve's Payments System Risk policy, all institutions that maintain a Federal Reserve account are assigned or may establish a net debit cap that represents a maximum limit on daylight overdrafts incurred in that account on a single day or on average during a two-week maintenance period. The net debit cap is a multiple applied to the risk-based capital for a U.S.-chartered institution and to the consolidated U.S. capital equivalency for a U.S. branch or agency of a foreign bank. The FR 2225 report was designed to minimize the reporting burden for foreign banks by relying as much as possible on publicly available data regarding capital and by requiring most foreign banks to submit their capital and asset figures only once each year, within three months following the end of the bank's fiscal year. A bank may voluntarily submit the report more frequently to have their overdraft limit based on current data. However, the overdraft limit generally would be smaller for any bank that does not provide the requested information because the limit would be based on the imputed capital of the bank's U.S. branches and agencies. 2. Report title: Report of Net Debit Cap Agency form number: FR 2226 OMB Docket number: 7100-0217 Frequency: Annually Reporters: Depository institutions, Edge and agreement corporations, and U.S. branches and agencies of foreign banks Annual reporting hours: 2,250 Estimated average hours per response: 1.0 Number of respondents: 2,250 Small businesses are not affected. General description of report: This information collection is required (sections 11, 16, and 19 of the Federal Reserve Act) and is given confidential treatment (5 U.S.C. 552(b)(4)). Abstract: The Federal Reserve is concerned about the risks associated with critical payment systems. The Federal Reserve Banks are directly exposed to the risk of loss if a depository institution uses Federal Reserve intraday credit to settle Fedwire funds or book-entry securities transfer payments and is unable to repay the extension of credit. The Federal Reserve has adopted a payment system risk reduction policy that relies in part on the efforts of individual institutions to identify, control, and reduce their exposure. The Report of Net Debit Cap comprises one or more resolutions filed by an institution's board of directors. Under the Federal Reserve's Payments System Risk policy, all institutions that maintain a Federal Reserve account are assigned or may establish a net debit cap that represents a maximum limit on daylight overdrafts incurred in that account on a single day or on average during a two-week maintenance period. The net debit cap is a multiple applied to the risk-based capital for a U.S.-chartered institution and to the U.S. capital equivalency for a U.S. branch or agency of a foreign bank. 3. Report title: Applications for the Issuance and Cancellation of Federal Reserve Stock--National Bank, Nonmember Bank, Member Bank Agency form number: FR 2030, 2030a, 2056, 2086a, 2086b, and 2087 OMB Docket number: 7100-0042 Frequency: On occasion Reporters: National, State Member and Nonmember Banks Annual reporting hours: 942 (FR 2030: 43; FR 2030a: 29; FR 2056: 797; FR 2086a: 26; FR 2086b: 24; FR 2087: 23). Estimated average hours per response: 0.5 (for each form) Number of respondents: 1,881 (FR 2030: 86; FR 2030a: 57; FR 2056: 1,594; FR 2086a: 52; FR 2086b: 47; FR 2087: 45). Small businesses are affected. General description of report: This information collection is mandatory [12 U.S.C. Secs. 35, 222, 282, 287, 288, and 321 and 12 C.F.R. Secs. 209.1, 209.3, 209.5(b), 209.6, 209.7, and 209.8] and is not given confidential treatment. Abstract: These Federal Reserve Bank stock application forms are required to be submitted to the Federal Reserve System by any national bank, state member bank, or state nonmember bank wanting to purchase stock in the Federal Reserve System, increase or decrease its Federal Reserve Bank stock holdings, or cancel such stock. National banks, chartered by the Comptroller of the Currency, are required to become members of the Federal Reserve System. State- chartered commercial banks may elect to become members if they meet the requirements established by the Board of Governors of the Federal Reserve System. When a bank receives approval for membership in the Federal Reserve System, the bank agrees to certain conditions of [[Page 38342]] membership which are contained in an approval letter sent to the bank by the Federal Reserve Bank in the District where the bank is located. In addition to the conditions of membership, the bank also is advised by the Reserve Bank that it must subscribe to the capital stock of the Federal Reserve Bank of its District in an amount equal to 6 percent of the bank's paid-up capital and surplus, including reserve for dividends payable in common stock, pursuant to Section 5 of the Federal Reserve Act and Regulation I. However, the bank is required to make payment for only 50 percent of the subscription, which is recorded as paid-in capital on the Reserve Bank's balance sheet. The remaining 50 percent is subject to call by the Board of Governors of the Federal Reserve System. On June 30, 1994, there were 4,160 Federal Reserve member banks, and their consolidated paid-in capital at the twelve Federal Reserve Banks was $3.5 billion. The applications are necessary in order to obtain account data on the bank's capital and surplus and to document its request to increase or decrease its holdings of Federal Reserve Bank stock. Another purpose of the applications is to verify that a request has been duly authorized and to prevent unauthorized requests for issuance or cancellation of Federal Reserve Bank stock. The applications are used exclusively by the applying banks and the Federal Reserve Banks. The information collected on the applications is not available from any other source. 4. Report title: Notification of Foreign Branch Status Agency form number: FR 2058 OMB Docket number: 7100-0069 Frequency: On occasion Reporters: State member banks, Edge and agreement corporations, and bank holding companies Annual reporting hours: 20 Estimated average hours per response: 0.25 Number of respondents: 80 Small businesses are not affected. General description of report: This information collection is required (12 U.S.C. Secs. 321, 601, 602, 615, and 1844(c)). The notifications are not considered confidential. Abstract: Member banks, bank holding companies, and Edge and agreement corporations are required to notify the Federal Reserve System of the opening, closing, or relocation of an approved foreign branch. The notice requests information on the location and extent of service provided by the branch, and is filed within thirty days of the change in status. The Federal Reserve needs the information to fulfill its statutory obligation to supervise foreign branches of U.S. banking organizations. Minor clarifying changes will be made to the form and instructions. Regulation K, ``International Banking Operations,'' sets forth the conditions under which a foreign branch may be established. For their initial establishment of foreign branches, organizations must request prior Board approval as directed in Attachment A of the FR K-1, ``International Applications and Prior Notifications Under Subparts A and C of Regulation K'' (OMB No. 7100-0107). For subsequent branch establishments into additional foreign countries, organizations must give the Federal Reserve System forty-five days prior written notice using Attachment B of FR K-1. Organizations use the FR 2058 notification to notify the Federal Reserve when any of these branches has been opened, closed, or relocated. The proposed changes in the FR 2058 instructions will clarify the scope of the branch status changes that require notification to the Federal Reserve. Information on changes in status of additional branches within the same country in which such a subsidiary is incorporated is not required. The FR 2058 instructions will be clarified to limit the filing requirement to the organization's initial entrant into each foreign country. Also, the instructions will be clarified to reflect that a notice should be filed for foreign branches of subsidiaries acquired or divested by the institution. The FR 2058 notification form also will be better formatted to elicit the effective date of the branch status change and whether the branch is a shell or a full service branch. Board of Governors of the Federal Reserve System, July 20, 1995 William W. Wiles, Secretary of the Board [FR Doc. 95-18314 Filed 7-25-95; 8:45AM] BILLING CODE 6210-01-F