[Federal Register Volume 61, Number 53 (Monday, March 18, 1996)]
[Notices]
[Pages 11005-11008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6366]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Submission to OMB Under
Delegated Authority
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Approval by the Board of Governors of bank holding company
reporting requirements.
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BACKGROUND: Notice is hereby given of the final approval of proposed
information collections by the Board of Governors of the Federal
Reserve System (Board) under OMB delegated authority, as per 5 CFR
1320.16 (OMB Regulations on Controlling Paperwork Burdens on the
Public). 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.
FOR FURTHER INFORMATION CONTACT: Robert T. Maahs, Supervisory Financial
Analyst (202/872-4935) or Tina Robertson, Supervisory Financial Analyst
(202/452-2949) for information concerning the specific bank holding
company reporting requirements. The following may also be contacted
regarding the information collection:
1. 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. Telecommunications
Device for the Deaf (TDD) users may contact Dorothea Thompson (202/452-
3544), Board of Governors of the Federal Reserve System, Washington, DC
20551.
2. Milo Sunderahauf, OMB Desk Officer, (202/395-7340), Office of
Information and Regulatory Affairs, Office of Management and Budget,
New Executive Office Building, Room 3208, Washington, DC 20503.
SUPPLEMENTARY INFORMATION:
General Information and Public Comment
On January 3, 1996, the Board issued for public comment proposed
revisions to certain bank holding company reports. The comment period
expired on March 3, 1996. Four comment letters were received on the
proposed revisions in the bank holding company reporting requirements.
Additional verbal comments were received from three holding companies.
Under the Bank Holding Company Act of 1956, as amended, the Board is
responsible for the supervision and regulation of all bank holding
companies. The FR Y-9 and FR Y-11 series of reports historically have
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, as well as ratios developed
from the Y series reports, are used to detect emerging financial
problems, to review performance for pre-inspection analysis, to
evaluate bank holding company mergers and acquisitions, and to analyze
a holding company's overall financial condition and performance as part
of the Federal Reserve System's overall analytical effort.
Final approval 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: 183,927.
Estimated average hours per response: Range from 5 to 1,250 hours.
Number of respondents: 1,354.
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 consolidated financial statements are currently filed
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, all
multibank bank holding companies with debt outstanding to the general
public or engaged in certain nonbank activities, regardless of size,
must file the FR Y-9C. The following bank holding companies are exempt
from filing the FR Y-9C, unless the Board specifically requires an
exempt company to file the report: bank holding companies that are
subsidiaries of another bank holding company and have total
consolidated assets of less than $1 billion; bank holding companies
that have been granted a hardship exemption by the Board under section
4(d) of the Bank Holding Company Act; and foreign banking organizations
as defined by section 211.23(b) of Regulation K.
The report includes a balance sheet, income statement, and
statement of changes in equity capital with supporting schedules
providing information on securities, loans, risk-based capital,
deposits, interest sensitivity, average balances, off-balance sheet
activities, past due loans, and loan charge-offs and recoveries.
The Board has approved the following revisions to the FR Y-9C that
are effective with the March 31, 1996 reporting date. Most of the
proposed new items are needed to maintain consistency with comparable
items recently proposed or previously added to the commercial bank
Reports of Condition and Income (Call Report). In addition,
clarifications have been made to the instructions.
In response to public comment, the Board has also adopted
suggestions provided by a commenter representing a number of large bank
holding companies and supported by verbal comments received from other
bank holding companies. The comment letter stated in part:
We support the Agencies' proposal that the Call Report include
line items for Tier 1 Capital, Tier 2 Capital, total risk-based
capital, total risk-weighted assets, the excess amount of allowance
for loan and lease losses (if any), and average total assets. Given
the Agencies' emphasis on conforming Call Report and FR Y-9C
requirements where appropriate, we would also encourage the
[[Page 11006]]
Agencies to incorporate the disclosure of this information into the FR
Y-9C.
The Board has approved the addition of five new items to collect
data on (1) Tier 1 capital; (2) Total risk-based capital; (3) Risk-
weighted assets; and (4) Average total assets. With respect to the
fifth item, the Board approved the collection of data on total risk-
weighted assets for those bank holding companies with Section 20
affiliates.
Further, the Board has eliminated nine additional items on Schedule
HC-IC ``Additional Detail on Capital Components.'' The amounts reported
in these items have been small and the nine items have been combined
into one. This item is ``Total perpetual debt, undedicated portions of
mandatory convertible securities and long-term preferred stock with an
original maturity of 20 years or more that qualify for supplementary
capital (after discounting).'' Another item, ``Unsecured long-term debt
issued prior to March 12, 1988, that qualified as secondary capital
when issued,'' has been deleted.
As issued for public comment, the Board proposed to modify Schedule
HC-G, ``Memoranda'' to add two line items to report: (a) the amount of
excess servicing fees receivable (other than excess residential
mortgage servicing fees receivable) and (b) the amount of excess
servicing fees receivable that represent a credit enhancement for
securitized receivables. With asset-backed securitizations continuing
to develop in the financial services industry, the Board proposed to
monitor the growth and risk exposures of this activity. In addition,
excess servicing fees that represent credit enhancements for
securitized receivables could affect the risk-based capital
calculations, because such credit enhancements may be, in substance,
recourse obligations. Three comment letters addressed the addition of
these two items. All three letters expressed concern about the
inclusion of these items at this time. The comments indicated that the
industry had not had sufficient time to fully analyze the implications
of the treatment of excess servicing rights on existing accounting
policy and on capital ratios. As a result of the comments, the Board
has decided to defer implementation of these items.
The other revisions to the reports, as issued for public comment,
and approved are described as follows:
A. Revisions Related to Consistent Reporting With the Call Report
Balance Sheet
(1) Revise the reporting requirements for item 17, ``Other borrowed
money with original maturity of one year or less,'' and item 18,
``Other borrowed money with original maturity of more than one year,''
to collect information based on remaining maturity instead of original
maturity as currently reported. This change in reporting also requires
a revision to line item 5 of Schedule HC-D, ``Interest Sensitivity,''
to exclude the portion of long-term debt reported in Schedule HC, item
18. Such reporting is no longer applicable because of the revisions to
reporting ``other borrowed money.''
Schedule HC-B, Part I, Loans and Lease Financing Receivables
(1) Add a line item to report the amount of bankers acceptances of
other banks that are included in loans to depository institutions.
(2) Add a memorandum item to report the amount of commercial paper
included in loans.
Schedule HC-C, Deposit Liabilities in Domestic Offices
(1) Add two memorandum items to report: (a) brokered deposits less
than $100,000 with a remaining maturity of one year or less, and (b)
brokered deposits less than $100,000 with a remaining maturity of more
than one year.
(2) Add a memorandum item to report the amount of time deposits
greater than $100,000 with a remaining maturity of one year or less.
(3) Add a memorandum item to report the amount of foreign office
time deposits with a remaining maturity of one year or less.
Schedule HC-F, Off-Balance-Sheet Items
(1) Add two line items to report the outstanding amount of small
business obligations sold with recourse and the amount of recourse
retained.
Schedule HI, Income Statement
(1) Combine the portion of item 5(c), ``Trading gains (losses) and
fees from foreign exchange'' with item 5(d), ``Other gains (losses) and
fees from trading assets and liabilities,'' into one line item and
change the caption to ``Trading revenue.'' Also, memoranda items 9a
through 9d should equal the ``Trading revenue'' item.
(2) Add a line item to report ``Other foreign transaction gains
(losses),'' which is currently included in line 5(c).
(3) Delete memorandum item 3, ``estimated foreign tax credits
(included in applicable income taxes, item 9 and 12 ).''
Schedule HI-B, Charge-offs and Recoveries and Changes in Allowance for
Loan and Lease Losses
(1) Add a line item to report the amount of credit losses on off-
balance-sheet derivative contracts.
B. Other FR Y-9C Revisions
Schedule HC-A, Securities
(1) Move the footnote disclosure on page 21, ``Net unrealized
losses on equity securities with readily determinable fair values
reported in Schedule HC-A, items 4.b and 5.b (net of tax effect),''
into the body of Schedule HC-A.
Schedule HC-I, Risk-Based Capital
(1) Combine line items 10 and 11 on Schedule HC-I, Part II, into
one line item and change the caption to ``Credit equivalent amount of
off-balance-sheet derivative contracts'' (an identical caption change
will occur on Schedule HC-J, Part II, line 6).
(2) Delete memorandum item 6(a) of Part I, discounted value of
purchased mortgage servicing rights.
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: 29,562.
Estimated average hours per response: Range from 2.0 to 13.5 hours.
Number of respondents: 1,646.
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 if the top tier bank holding company files the FR Y-9C. The
following bank holding companies are exempt from filing the FR Y-9LP,
unless the Board specifically requires an exempt company to file the
[[Page 11007]]
report: bank holding companies that have been granted a hardship
exemption by the Board under section 4(d) of the Bank Holding Company
Act; and foreign banking organizations as defined by section 211.23(b)
of Regulation K. The Board has adopted the following revisions to the
FR Y-9LP. The revisions are needed to maintain consistency with
comparable items on the FR Y-9C, and are effective with the March 31,
1996 reporting date.
Schedule PC, Parent Company Only Balance Sheet
Revise the reporting requirements for line item 13, ``Borrowings
with an original maturity of one year or less,'' and line item 14,
``Other borrowed funds with an original maturity of greater than one
year,'' to collect information based on remaining maturity instead of
original maturity as currently reported.
Schedule PC-B, Memoranda
Revise the reporting requirements of line item 2, ``Amount of
borrowings included in Schedule PC, items 14 through 16 and item 18
that is scheduled to mature with one year (exclude short-term debt),''
to exclude line item 14 because line item 14 of Schedule PC will be
based on remaining maturity and will no longer be applicable to this
line item.
3. 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: 6,696.
Estimated average hours per response: Range from 3.0 to 8.0 hours.
Number of respondents: 270.
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 Board has adopted the following revisions to the FR Y-11Q to be
effective with the March 31, 1996 reporting date:
Balance Sheet
(1) Delete line items 11 and 18, ``Balances with nonrelated
institutions.''
(2) Revise the reporting requirements of line item 15, ``Borrowing
with original maturity of one year or less (including federal funds
purchased),'' and line item 16, ``Borrowing with an original maturity
of more than one year (including subordinated debt),'' to collect
information based on remaining maturity instead of original maturity as
currently reported.
(3) Delete memorandum item 13, ``Borrowings scheduled to mature in
less than one year.''
Income Statement
Add a line item to report the amount of equity in the undistributed
income (losses) of subsidiaries.
4. 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: 13,216.
Estimated average hours per response: Range from .4 to 8.0 hours.
Number of respondents: 4,130.
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 Board has adopted the following revisions to the FR Y-11I to be
effective with the December 31, 1996 reporting date:
Balance Sheet
(1) Delete line items 11 and 18, ``Balances with nonrelated
institutions.''
(2) Revise the reporting requirements of line item 15, ``Borrowing
with original maturity of one year or less (including federal funds
purchased),'' and line item 16, ``Borrowing with an original maturity
of more than one year (including subordinated debt),'' to collect
information based on remaining maturity instead of original maturity as
currently reported.
Income Statement
Add a line item to report the amount of equity in the undistributed
income (losses) of subsidiaries.
Administrative Procedures Act
The Administrative Procedures Act (5 U.S.C. 553(d)) provides that
the required publication or service of a substantive rule shall be made
not less that 30 days before its effective date, except as otherwise
provided by the agency for good cause found and published with the
rule. The substantive changes to this report are proposed to keep the
reporting requirements consistent with those changes being incorporated
in the Call Report to be filed by commercial banks as of March 31,
1996. In the past, bank holding companies have commented that reporting
burden is minimized by keeping the Call Report and the bank holding
company reports consistent and by implementing the changes on the same
date. Furthermore, no comments were received addressing the effective
date of the revisions approved by the Board and contained in this
notice to the bank holding company reports. For these reasons, in
accordance with 5 U.S.C. 553(d)(3), the Board finds there is good cause
not to follow the 30-day notice requirements of 5 U.S.C. 553(d) and to
make the implementation date for the revised FR Y-9C, FR Y-9LP, and FR
Y-11Q reports effective for March 31, 1996.
[[Page 11008]]
Regulatory Flexibility Act Analysis
The Board certifies that the above bank holding company reporting
requirements are not expected to have a significant economic impact on
small entities within the meaning of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.). The reporting requirements for the small companies
require significantly fewer items of data to be submitted than the
amount of information required of large bank holding companies.
The information that is collected on the reports is essential for
the detection of emerging financial problems, the assessment of a
holding company's financial condition and capital adequacy, the
performance of pre-inspection reviews, and the evaluation of expansion
activities through mergers and acquisitions. The imposition of the
reporting requirements is essential for the Board's supervision of bank
holding companies under the Bank Holding Company Act.
Board of Governors of the Federal Reserve System, March 12,
1996.
William W. Wiles,
Secretary of the Board.
[FR Doc. 96-6366 Filed 3-15-96; 8:45 am]
BILLING CODE 6210-01-P