[Federal Register Volume 64, Number 17 (Wednesday, January 27, 1999)]
[Notices]
[Pages 4103-4106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1838]
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FEDERAL RESERVE SYSTEM
Agency information collection activities: Proposed collection;
comment request
AGENCY: Board of Governors of the Federal Reserve System
SUMMARY: 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, 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. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. Copies of the OMB 83-Is and supporting
statements and approved collection of information instruments are
placed into OMB's public docket files. 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.
Request for comment on information collection proposals.
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 collection of information is 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 estimate of the burden of
the proposed information collection,
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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
respondents, including through the use of automated collection
techniques or other forms of information technology.
DATES: Comments must be submitted on or before March 29, 1999.
ADDRESSES: Comments, which should refer to the OMB control number or
agency form number, should be addressed to Jennifer J. Johnson,
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 261.14 of the Board's Rules Regarding Availability
of Information, 12 CFR 261.14(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. West, 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.
Proposal to approve under OMB delegated authority the extension for
three years, without revision, of the following reports:
1. Report title: Notification of Foreign Branch Status
Agency form number: FR 2058
OMB control number: 7100-0069
Frequency: on occasion
Reporters: state member banks, national banks, bank holding
companies, Edge and agreement corporations
Annual reporting hours: 20
Estimated average hours per response: 15 minutes
Number of respondents: 80
Small businesses are not affected.
General description of report: This information collection is
mandatory (12 U.S.C. 321, 601, 602, 615, and 1844(c)) and is not given
confidential treatment.
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 System needs the information
requested on the FR 2058 form to fulfill supervisory responsibilities
specified in Regulation K including the supervision of foreign branches
of U.S. banking organizations.
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 Federal Reserve 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.
2. Report title: International Applications and Prior Notifications
under Subparts A and C of Regulation K
Agency form number: FR K-1
OMB control number: 7100-0107
Frequency: on occasion
Reporters: state member banks, national banks, bank holding
companies, Edge and agreement corporations, and certain foreign banking
organizations
Annual reporting hours: 636
Estimated average hours per response:
Attachments A - G: 10
Attachments H, I: 15
Attachment J: 20
Number of respondents: 36
Small businesses are not affected.
General description of report: This information collection is
mandatory(12 U.S.C. 601-604(a), 611-631, 1843(c)(13), 1843(c)(14), and
1844(c)) and is not given confidential treatment. 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 comprises a set of applications and
notifications that govern the formation of Edge or agreement
corporations and the international and foreign activities of U.S.
banking organizations. The applications and notifications collect
information on projected financial data, purpose, location, activities,
and management. The Federal Reserve requires these applications for
regulatory and supervisory purposes and to allow the Federal Reserve to
fulfill its statutory obligations under the Federal Reserve Act and the
Bank Holding Company Act of 1956.
Regulatory Flexibility Act Statement: The Board certifies that the
extension of the above applications and notifications is not expected
to have a significant economic impact on a substantial number of small
entities within the meaning of the Regulatory Flexibility Act.
Proposal to approve under OMB delegated authority the extension for
three years, with revision, of the following reports:
1. Report title: Reports Related to Public Welfare Investments of State
Member Banks
Agency form number: FR H-6
OMB control number: 7100-0278
Frequency: event-generated
Reporters: state member banks
Annual reporting hours: 78
Estimated average hours per response:
Investment Notice: 2
Application: 2.75
Extension of divestiture period: 5
Number of respondents: 35
Small businesses are not affected.
General description of report: This information collection is
required to obtain a benefit (12 U.S.C. 338a) and is generally not
given confidential treatment. However, if the information collected
contains an examination rating (or other supervisory information), that
information would be exempt from disclosure (5 U.S.C. 552(b)(4)).
Abstract: The FR H-6 comprises of an investment notice, application
for Board approval of an investment, and request for extension of the
divestiture period of an investment. The state member banks may make
certain public welfare investments without prior Board approval, they
need only notify the Federal Reserve. Certain other public welfare
investments require prior approval and the request must be
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submitted to the Board. If an investment ceases to conform to certain
requirements the state member bank must divest itself of the
investment. In some cases the bank must submit a request for extension
of the divestiture period. The proposed revisions for the FR H-6 would
conform the information collection with the recently revised Regulation
H. The Board is eliminating the requirement that, to avoid applying for
Board approval, the investment must be smaller than 2 percent of
capital and surplus. This should result in fewer applications and more
notices of investments not requiring Board approval. Additionally, a
requirement has been added to the application for Board approval: if
the bank is not permitted to make the investment without Board
approval, the institution must explain the reason(s) why the investment
is ineligible.
Regulatory Flexibility Act Analysis: Pursuant to section 605(b) of
the Regulatory Flexibility Act (RFA) (5 U.S.C. 605(b)) the Federal
Reserve hereby certifies that this proposed rule will not have a
significant economic impact on a substantial number of small entities.
2. Report title: Application for Prior Approval to Become a Bank
Holding Company, or for a Bank Holding Company to Acquire an Additional
Bank or Bank Holding Company
Agency form number: FR Y-3
OMB control number: 7100-0121
Frequency: Event-generated
Reporters: Corporations seeking to become bank holding companies,
or bank holding companies and state chartered banks that are members of
the Federal Reserve System
Annual reporting hours: 30,443
Estimated average hours per response:
Section 3(a)(1): 49 hours,
Section 3(a)(3) and 3(a)(5): 59.5 hours
Number of respondents:
Pursuant to Section 3(a)(1): 274,
Pursuant to Section 3(a)(3) and 3(a)(5): 286
Small businesses are affected.
General description of report: This information collection is
mandatory (12 U.S.C. Secs. 1842(a)(1), (a)(3), and (a)(5) and 12
U.S.C. Sec. 1844(c)). Individual respondent data are available to the
public except any portions which have been granted confidential
treatment at the applicants request (5 U.S.C.552 (b)(4) and (b)(8)).
Abstract: This application collects information concerning proposed
bank holding company formations, acquisitions, and mergers between
banks and bank holding companies for review by the Federal Reserve. The
application collects financial and managerial information and data on
competitive and public convenience factors.
Current Actions: Tier 3 capital would be included in the
information requested for question 4.d of the FR Y-3 due to changes in
the international risk-based capital standards. Information on debt
servicing would be added to the FR Y-3 to conform the report with
revisions to sections 225.24 and 225.17 of Regulation Y.
Clarifications are proposed to the ``Competition and Convenience
and Needs'' section of the application to remove certain outdated
references. Question 11 of this section would be clarified and question
12 of this section would be revised to conform with proposed changes to
the Interagency Bank Merger Act Application (FR 2070; OMB No. 7100-
0171). In addition, clarifications would be made to the publication
requirements for this application.
3. Report title: Application for Prior Approval to Engage Directly
or Indirectly in Certain Nonbanking Activities
Agency form number: FR Y-4
OMB control number: 7100-0121
Frequency: Event-generated
Reporters: Bank holding companies
Annual reporting hours: 4,147
Estimated average hours per response:
Post-consummation: 0.50 hours;
Expedited notification: 5 hours;
Complete notification: 12 hours.
Number of respondents:
Post-consummation: 29;
Expedited notification: 92;
Complete notification: 306.
Small businesses are affected.
General description of report: This information collection is
mandatory (12 U.S.C. Sec. 1843 and 1844 (c)). Individual respondent
data are available to the public except any portions granted
confidential treatment at the applicants request (5 U.S.C. Sec.
552(b)(4) and (8)).
Abstract: This form is completed by a bank holding company seeking
prior approval (1) to acquire or retain the assets or shares of a
nonbank company or (2) to engage de novo in nonbank activities. Most
applications require information on the proposed transaction,
information on competition and public benefits, and financial and
managerial information. For applications to engage de novo in nonbank
activities permissible under Regulation Y, less detailed information is
required.
Current Actions: The Federal Reserve proposes to revise the FR Y-4
to reflect changes to Regulation Y that provide for two separate
streamlined procedures for certain nonbanking proposals that are
intended to reduce significantly regulatory burden and to improve the
ability of well-run bank holding companies to respond quickly to
changes in the market place. The FR Y-4 would become a notification
form instead of an application.
4. Report title: Annual Report of Foreign Banking Organizations;
Foreign Banking Organization Structure Report on U.S. Banking and
Nonbanking Activities; Foreign Banking Organization Confidential Report
of Operations
Agency form number: FR Y-7; FR Y-7A; FR 2068
OMB control number: 7100-0125
Frequency: Annual
Reporters: foreign banking organizations
Annual reporting hours: 5,150 hours
Estimated average hours per response: 15.75
Number of respondents: 327
Small businesses are not affected.
General description of report: These information collections are
mandatory (12 U.S.C. Secs. 1844(c), 3106, and 3108(a)). Upon request
from a respondent certain information in the FR Y-7 and FR Y-7A may be
given confidential treatment pursuant to the Freedom of Information Act
(5 U.S.C. Secs. 552(b)(4) and (6)). The FR 2068 is a confidential
report of operations that is exempted from public disclosure pursuant
to the Freedom of Information Act (5 U.S.C. Sec. 552(b)(8) and 12 CFR
Sec. 261.11(h).
Abstract: The FR Y-7, FR Y-7A, and FR 2068 are annual reports
completed by foreign banking organizations that engage in banking in
the United States, either indirectly through a subsidiary bank, Edge or
agreement corporation, or commercial lending company, or directly
through a branch or agency. The FR Y-7 collects financial, managerial,
and organizational information on the foreign banking organization. The
FR 2068 collects confidential financial and organizational information,
which is not collected in the FR Y-7. A foreign banking organization is
currently exempt from filing the FR 2068 if it meets certain criteria
related to the size and type of its U.S. banking operations. The FR Y-
7A collects structural information on the foreign banking organization
and its subsidiaries. All of the reports are filed as of the end of the
reporter's fiscal year. The information contained in these reports is
used by the Federal Reserve System to assess the foreign banking
organization's ability to be a continuing source of strength to its
U.S. banking operations and to determine compliance with U.S. laws and
regulations.
[[Page 4106]]
Current Actions: The Federal Reserve proposes to reduce regulatory
reporting burden for foreign banking organizations (FBOs) by
eliminating the FR 2068 and by reducing and clarifying the amount of
information to be reported on the FR Y-7 and FR Y-7A. Most of the
information collected in the FR 2068 is now publicly available. The
publicly available portion of two of the items currently reported on
the FR 2068 would be added to the FR Y-7: (1) financial statements of
unconsolidated majority-owned related subsidiaries, and (2) financial
data on unconsolidated minority-owned related companies. The most
significant changes on the FR Y-7 are the elimination of the
information requested on directors and officers, the simplification of
the information requested for the organization chart, and the addition
of two items currently reported on the FR 2068 as mentioned above The
most significant changes on the FR Y-7A are the simplification of the
information requested on securities held through debts previously
contracted and on Legal Authority, and the addition of four new items.
Proposal to approve under OMB delegated authority the
implementation of the following report:
1. Report title: Notice for Prior Approval to Become a Bank Holding
Company, or for a Bank Holding Company to Acquire an Additional Bank or
Bank Holding Company
Agency form number: FR Y-3N
OMB control number: 7100-0121
Frequency: Event-generated
Reporters: Corporations seeking to become bank holding companies,
or bank holding companies and state chartered banks that are members of
the Federal Reserve System
Annual reporting hours: 945
Estimated average hours per response: 5 hours
Number of respondents: 189
Small businesses are affected.
General description of report: This information collection is
mandatory (12 U.S.C. Sec. 1844(c)). Individual respondent data are
available to the public except any portions which have been granted
confidential treatment at the applicant's request (5 U.S.C. 552 (b)(4)
and (b)(8)).
Abstract: The Federal Reserve is proposing to implement the FR Y-3N
due to Regulation Y revisions that provide for streamlined processes
for reviewing applications and notifications from respondents meeting
certain qualifying criteria. The FR Y-3N requests substantially less
information than the current FR Y-3 for respondents that meet the
qualifying criteria.
Current Actions: The proposed FR Y-3N reporting form would be used
for: (1) notifications filed using the abbreviated notice procedures
for certain BHC formations, as described in section 225.17 of
Regulation Y; (2) notifications filed to acquire shares, assets, or
control of a bank, or a merger or consolidation between BHCs, filed
under the streamlined procedures described in section 225.14 of
Regulation Y, and (3) notifications filed to acquire a nonbank insured
depository institution that require approval under section 4 of the BHC
Act, if the BHC and the proposal would meet all of the criteria for
expedited action under section 225.14 if the nonbank insured depository
institution were a bank.
Proposal to approve under OMB delegated authority the
discontinuance of the following reports:
1. Report title: Notification Pursuant to Section 211.23(h) of
Regulation K on Acquisitions by Foreign Banking Organizations
Agency form number: FR 4002
OMB control number: 7100-0110
Frequency: Event-generated
Reporters: foreign banking organizations
Annual reporting hours: 80
Estimated average hours per response: 0.50
Number of respondents: 160
Small businesses are not affected.
General description of report: This information collection is
mandatory (12 U.S.C. Secs. 1844(c), 3106, and 3108(a)). Upon request
from a respondent certain information in the FR 4002 may be given
confidential treatment pursuant to the Freedom of Information Act (5
U.S.C. Secs. 552(b)(4) and (6)).
Abstract: The FR 4002 is an event-generated information collection
that foreign banking organizations are required to submit, in a letter
to the appropriate Federal Reserve Bank. The information is due within
thirty days of the end of a quarter during which the foreign banking
organization acquires shares of companies that engage, directly or
indirectly, in business in the United States, or during which a foreign
subsidiary of the FBO commences direct activities in the United States.
The letter should include a brief description of the nature and scope
of each company's U.S. business(es), including the four-digit Standard
Industrial Classification (SIC) code(s) of the U.S. activities of the
company and of its direct parent, and a statement of total assets and
total revenue of the direct parent. The foreign banking organization is
not required to report information whose collection would cause the FBO
to incur ``unreasonable effort or expense,'' or information that is
otherwise ``unknown and not reasonably available.''
Current Actions: In December 1997, the Board proposed changes to
Regulation K to require the information reported in the FR 4002
annually instead of quarterly (62 FR 68424). If the Board implements
these proposed changes, the information collected on the FR 4002 will
be reflected annually in the FR Y-7 and FR Y-7A, eliminating the need
for this separate information collection. However, the final rulemaking
has not been published. This proposal seeks approval to discontinue the
FR 4002 upon publication of a final rulemaking permitting annual
reporting of the information.
Board of Governors of the Federal Reserve System, January 21,
1999.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 99-1838 Filed 1-26-99; 8:45AM]
Billing Code 6210-01-F