[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]



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FEDERAL RESERVE SYSTEM


Agency Forms Under Review

AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice.

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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.

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    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