[Federal Register Volume 63, Number 19 (Thursday, January 29, 1998)]
[Notices]
[Pages 4450-4453]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2254]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Proposed Collection;
Comment Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice.
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SUMMARY: 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, as
per 5 CFR 1320.16, 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
Appendix A.1. The Federal Reserve may not conduct or sponsor, and the
respondent is not required to respond to, an information collection
that has been extended, revised, or implemented on or after October 1,
1995, unless it displays a currently valid OMB control number. Board-
approved collections of information will be incorporated into the
official OMB inventory of currently approved collections of
information. Copies of the OMB 83-Is, supporting statements, and the
approved collection of information instruments will be placed into
OMB's public docket files. The following information collections, 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 collections, along with an
analysis of comments and recommendations received, will be submitted to
the Board for final approval under OMB delegated authority. Comments
are invited on the following: a. Whether the proposed collections of
information are necessary for the proper performance of the Federal
Reserve's functions; including whether the information has practical
utility; b. the accuracy of the Federal Reserve's estimates of the
burden of the proposed information collection, including the validity
of the methodology and assumptions used; c. ways to enhance the
quality, utility, and clarity of the information to be collected; and
d. ways to minimize the burden of information collection on
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respondents, including through the use of automated collection
techniques or other forms of information technology.
DATES: Comments must be submitted on or before March 30, 1998.
ADDRESSES: Comments, which should refer to the OMB control number or
agency form number, should be addressed to 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 Sec. 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: Alexander T. Hunt, 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, whose name appears below.
Mary M. McLaughlin, Chief, Financial Reports Section (202-452-
3829), Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, DC 20551.
Telecommunications Device for the Deaf (TDD) users may contact
Diane Jenkins (202-452-3544), Board of Governors of the Federal Reserve
System, Washington, DC 20551.
For further information on the proposals concerning the FR Y-9
reports, contact Robert T. Maahs, Senior Supervisory Financial Analyst
(202-872-4935). For further information on the proposals concerning the
FR Y-11 reports, contact Tina Robertson, Supervisory Financial Analyst
(202-452-2949).
General Information
The FR Y-9 and FR Y-11 series of reports have historically been,
and continue to be, the primary source of financial information on bank
holding companies and their nonbanking activities between on-site
inspections. Financial information are used to detect emerging
financial problems, to review performance for pre-inspection analysis,
to monitor and evaluate capital adequacy, to evaluate bank holding
company mergers and acquisitions, and to analyze holding companies
overall financial condition and performance as part of the Federal
Reserve System's overall supervisory responsibilities.
Proposal To Approve Under OMB Delegated Authority the Revision of
the Following Reports
1. Report title: Consolidated Financial Statements for Bank Holding
Companies.
Agency form number: FR Y-9C.
OMB control number: 7100-0128.
Frequency: Quarterly.
Reporters: Bank holding companies.
Annual reporting hours: 196,578.
Estimated average hours per response: Ranges from 5 to 1,250 hours.
Number of respondents: 1,457.
Small businesses are affected.
General description of report: The information collection is
mandatory 12 U.S.C. 1844(b) and (c) and 12 CFR 225.5(b). Confidential
treatment is not routinely given to the data in these reports. However,
confidential treatment for the reporting information, in whole or in
part, can be requested in accordance with the instructions to the form.
Data reported on the FR Y-9C, Schedule HC-H, Column A, requiring
information on ``assets past due 30 through 89 days and still
accruing'' and memoranda item 2 are confidential pursuant to Section
(b)(8) of the Freedom of Information Act 5 U.S.C. 552(b)(8).
The FR Y-9C consists of standardized financial statements similar
to the commercial bank Report of Condition and Income (Call
Report)(FFIEC 031-034; OMB No. 7100-0036). The FR Y-9C is filed
quarterly by top-tier bank holding companies with total consolidated
assets of $150 million or more and by lower-tier bank holding companies
that have total consolidated assets of $1 billion or more. In addition,
multibank holding companies with total consolidated assets of less than
$150 million with debt outstanding to the general public or engaged in
certain nonbank activities must file the FR Y-9C.
The Federal Reserve proposes to make the following changes to the
FR Y-9C effective with the March 31, 1998, reporting date to parallel
proposed and recent changes to the Call Report.
Schedule HC-B, Part II--Trading Assets and Liabilities
Eliminate the separate reporting of item 6, ``Certificates of
deposit in domestic offices,'' item 7, ``Commercial paper in domestic
offices,'' and item 8, ``Bankers acceptances in domestic offices.''
Instead, existing items 6 and 8 would be included in existing item 9,
``Other trading assets in domestic offices.'' Commercial paper held for
trading would begin to be reported as part of the bank holding
company's trading account securities, in existing item 5, ``Other debt
securities in domestic offices,'' consistent with the change in balance
sheet classification of commercial paper not held for trading and the
elimination of the loan schedule memorandum item for commercial paper,
both of which took effect as of March 31, 1997.
Schedule HC-I--Risk-Based Capital
(1) Add an item for the reporting of the ``Maximum contractual
dollar amount of recourse exposure in low level recourse transactions''
to allow respondents to report low level recourse for capital purposes
under the ``direct reduction method.'' Currently, bank holding
companies can only report its low level recourse transactions using the
``gross-up'' method. In general, the gross-up method requires the bank
holding company to multiply the maximum amount of its recourse exposure
by the reciprocal of the full effective minimum risk-based capital
requirement for the assets transferred and to report the resulting
dollar amount as an off-balance sheet credit equivalent amount in the
risk weight category appropriate to the assets transferred. However,
the greater the volume of a bank holding company's low level recourse
transactions and the higher the bank holding company's risk-based
capital in relation to the minimum requirement, the more the bank
holding company's calculated risk-based capital ratios become distorted
as a result of applying the gross-up method. In these situations,
another method of handling the bank holding company's low level
recourse transactions, the so-called direct reduction method, results
in a more accurate measure of the bank holding company's risk-based
capital ratios.
(2) Add two items to incorporate new capital requirements for the
measurement of market risk. These items are: ``Market risk equivalent
assets'' and ``Tier 3 Capital.'' In addition, include an item to report
the amount of ``Tier 2 Capital.''
(3) Revise the caption of Item 3 of Part III to read ``Net risk-
weighted assets (gross risk-weighted assets less excess allowance
[amount that exceeds 1.25% of gross risk-weighted assets] and all other
deductions).''
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Allowance for Credit Losses
The American Institute of Certified Public Accountants' (AICPA)
Industry Audit Guide for Banks and Savings Institutions, issued as of
April 1, 1996, requires the allocation on the balance sheet of the
allowance for credit losses between on-balance sheet financial
instruments and off-balance sheet credit exposures. Previously, these
allowance components often were reported in the aggregate in the
allowance for loan and lease losses (ALLL).
Bank holding companies have been advised to allocate the allowance
for credit losses on Schedule HC--Balance Sheet consistent with their
allocation methodology for other financial reporting purposes. For
example, portions of the allowance for credit losses related to off-
balance sheet exposures that are reported as liabilities are to be
included in Schedule HC, item 23, ``Other liabilities.'' Bank holding
companies have also been advised to aggregate these components of the
allowance for credit losses when completing Schedule HI-B, Part II,--
Allowance for Loan and Lease Losses. In addition, bank holding
companies were advised to disclose the amounts of these components in
the ``Notes to the Balance Sheet.''
The Federal Reserve proposes to retain this methodology of
reporting the allowance for credit losses. In doing so, Schedule HI-B,
Part II would be retitled ``Allowance for Credit Losses,'' and item
4.a, of Schedule HI--Income Statement would be recaptioned ``Provision
for credit losses.'' However, Schedule HI-B, Part I--Charge Offs and
Recoveries on Loans and Leases would not be changed, that is, bank
holding companies would continue to disclose their loan and lease
charge-offs and recoveries only.
Schedule HI--Income Statement
Add a memorandum item to determine whether the bank holding company
has made a Subchapter S selection for the purposes of the current tax
year.
Instructions
Instructional revisions and clarifications would be made as
necessary, particularly with respect to implementing certain deferred
provisions of Financial Accounting Standards Board Statement No. 125,
``Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities,'' that become effective in 1998.
Instructional revisions and clarifications will be done in accordance
with changes made to the Call Report instructions and revisions, if
any, to the Capital Guidelines.
2. Report title: Parent Company Only Financial Statements for Large
Bank Holding Companies.
Agency form number: FR Y-9LP.
OMB control number: 7100-0128.
Frequency: Quarterly.
Reporters: Bank holding companies.
Annual reporting hours: 33,032.
Estimated average hours per response: Range from 2.0 to 13.5 hours.
Number of respondents: 1,807.
Small businesses are affected.
General description of report: The information collection is
mandatory 12 U.S.C. 1844(b) and (c) and 12 CFR 225.5(b). Confidential
treatment is not routinely given to the information in these reports.
However, confidential treatment for the report information, in whole or
in part, can be requested in accordance with the instructions to the
form.
The FR Y-9LP includes standardized financial statements filed
quarterly on a parent company only basis from each bank holding company
that files the FR Y-9C. In addition, for tiered bank holding companies,
a separate FR Y-9LP must be filed for each lower tier bank holding
company.
The Federal Reserve proposes the following revisions to the FR Y-
9LP effective with the March 31, 1998, reporting date.
Schedule PC-B--Memoranda
Revise item 9, ``Total combined nonbank assets of nonbank
subsidiaries,'' and expand the information reported about nonbank
subsidiaries. In addition, instructional clarifications would be made
to the existing item related to combined nonbank assets of nonbank
subsidiaries. Existing item 9 would be moved to a new item (item 15),
and additional reporting items would be included. However, all of these
items would only be reported by the top-tier bank holding company in a
multi-tier bank holding company. In addition to reporting the total
combined nonbank assets of nonbank subsidiaries, the top-tier bank
holding company would report separately the amount of combined thrift
assets and the combined foreign subsidiary assets that are included in
the total combined nonbank assets of nonbank subsidiaries. The top-tier
bank holding company would also report the total number of nonbank
subsidiaries that are included in the combined total assets, combined
thrift, and combined foreign nonbank asset balances.
Schedule PI--Income Statement
Change item 2(c)(1), ``Provision for possible loan and lease
losses'' to the ``Provision for credit losses'' to parallel the
revision made to Schedule HI--Income Statement of the FR Y-9C.
Instructions
Instructional revisions and clarifications would be made as
necessary, particularly with respect to the reporting of goodwill,
negative goodwill, and other identifiable intangible assets on Schedule
PC and Schedule PC-A.
3. Report title: Parent Company Only Financial Statements for Small
Bank Holding Companies.
Agency form number: FR Y-9SP.
OMB control number: 7100-0128.
Frequency: Semiannual.
Reporters: Bank holding companies.
Annual reporting hours: 31,912.
Estimated average hours per response: Range from 1.5 to 6.0 hours.
Number of respondents: 4,166.
Small businesses are affected.
General description of report: The information collection is
mandatory 12 U.S.C. 1844(b) and (c) and 12 CFR 225.5(b). Confidential
treatment is not routinely given to the information in these reports.
However, confidential treatment for the report information, in whole or
in part, can be requested in accordance with the instructions to the
form.
The FR Y-9SP is a parent company only financial statement filed on
a semiannual basis by one-bank holding companies with total
consolidated assets of less than $150 million, and multibank holding
companies with total consolidated assets of less than $150 million that
meet certain other criteria. This report, an abbreviated version of the
more extensive FR Y-9LP, is designed to obtain basic balance sheet and
income statement information for the parent company, information on
intercompany transactions, and data for capital adequacy evaluation.
The Federal Reserve proposes the following revisions to the FR Y-
9SP effective with the June 30, 1998, reporting date.
Balance Sheet
Expand memorandum item 8 for the reporting of additional
information about nonbank subsidiaries. Specifically, existing
memorandum item 8 would be moved to memorandum item 16, and this item
would be completed only by the top-tier bank holding company in a
multi-tiered bank holding company. In addition, the top-tier bank
holding company would disclose the combined thrift assets included in
total combined nonbank assets, as well as the total number of nonbank
entities (and separately the
[[Page 4453]]
number of thrifts) that are included in the amount of total combined
nonbank assets reported. Instructional clarifications would also be
made to the existing item related to combined nonbank assets of nonbank
subsidiaries.
Income Statement
Add a memorandum item to ask whether the bank holding company has
made a Subchapter S selection for the purposes of the current tax year.
Instructions
Instructional revisions and clarifications would be made as
necessary, particularly with respect to the reporting of goodwill,
negative goodwill, and other identifiable intangible assets on the
balance sheet.
Proposal To Approve Under OMB Delegated Authority the Extension for
Three Years, With Revision, of the Following Reports
1. Report title: Quarterly Financial Statements of Nonbank
Subsidiaries of Bank Holding Companies.
Agency form number: FR Y-11Q.
OMB control number: 7100-0244.
Frequency: Quarterly.
Reporters: Bank holding companies.
Annual reporting hours: 7,589.
Estimated average hours per response: Range from 3.0 to 8.0 hours.
Number of respondents: 306.
Small businesses are affected.
General description of report: The information collection is
mandatory 12 U.S.C. 1844(b) and (c) and 12 CFR 225.5(b). Confidential
treatment is not routinely given to most of the data in these reports.
However, confidential treatment for the report information, in whole or
in part, can be requested in accordance with the instructions to the
form. FR Y-11Q, memorandum item 7.a, ``loans and leases past due 30
through 89 days'' and FR Y-11Q, memorandum item 7.d, ``loans and leases
restructured and included in past due and nonaccrual loans'' are
confidential pursuant to Section (b)(8) of the Freedom of Information
Act 5 U.S.C. 552(b)(8).
The FR Y-11Q is filed quarterly by the top tier bank holding
companies for each nonbank subsidiary of a bank holding company with
total consolidated assets of $150 million or more in which the nonbank
subsidiary has total assets of 5 percent or more of the top-tier bank
holding company's consolidated Tier 1 capital, or where the nonbank
subsidiary's total operating revenue equals 5 percent or more of the
top-tier bank holding company's consolidated total operating revenue.
The report consists of a balance sheet, income statement, off-balance-
sheet items, information on changes in equity capital, and a memoranda
section.
The Federal Reserve proposes a minor revision to the FR Y-11Q
effective with the March 31, 1998, reporting date.
Income Statement
Item 4, ``Provision for loan and lease losses'' would be changed to
``Provision for credit losses.'' This revision, which would parallel a
proposed change to the FR Y-9C, would conform with the requirements of
the American Institute of Certified Public Accountants' (AICPA)
Industry Audit Guide for Banks and Savings Institutions that was issued
as of April 1, 1996.
2. Report title: Annual Financial Statements of Nonbank
Subsidiaries.
Agency form number: FR Y-11I.
OMB control number: 7100-0244.
Frequency: Annual.
Reporters: Bank holding companies.
Annual reporting hours: 6,720.
Estimated average hours per response: Range from .4 to 8.0 hours.
Number of respondents: 2,100.
Small businesses are affected.
General description of report: The information collection is
mandatory 12 U.S.C. 1844(b) and (c) and 12 CFR 225.5(b). Confidential
treatment is not routinely given to the data in these reports. However,
confidential treatment for the report information, in whole or in part,
can be requested in accordance with the instructions to the form. FR Y-
11I, Schedule A, item 7.a, ``loans and leases past due 30 through 89
days'' and FR Y-11I, Schedule A, item 7.d, ``loans and leases
restructured and included in past due and nonaccrual loans'' are
confidential pursuant to Section (b)(8) of the Freedom of Information
Act 5 U.S.C. 552(b)(8).
The FR Y-11I is filed annually by the top tier bank holding
companies for each of their nonbank subsidiaries that are not required
to file a quarterly FR Y-11Q. The FR Y-11I report consists of similar
balance sheet, income statement, off-balance-sheet, and change in
equity capital information that is included on the FR Y-11Q. In
addition, the FR Y-11I also includes a loan schedule to be submitted
only by respondents engaged in credit extending activities.
The Federal Reserve proposes a minor revision to the FR Y-11I
effective with the December 31, 1998, reporting date.
Income Statement
Item 4, ``Provision for loan and lease losses'' would be changed to
``Provision for credit losses.'' This revision, which would parallel a
proposed change to the FR Y-9C, would conform with the requirements of
the American Institute of Certified Public Accountants' (AICPA)
Industry Audit Guide for Banks and Savings Institutions that was issued
as of April 1, 1996.
Board of Governors of the Federal Reserve System, January 26,
1998.
William W. Wiles,
Secretary of the Board.
[FR Doc. 98-2254 Filed 1-28-98; 8:45 am]
BILLING CODE 6210-01-P