[Federal Register: March 22, 2007 (Volume 72, Number 55)]
[Notices]
[Page 13492-13495]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22mr07-50]
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FEDERAL RESERVE SYSTEM
Agency information collection activities: Announcement of Board
approval under delegated authority and submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: Background.
Notice is hereby given of the final approval of proposed
information collection 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). Board-
approved collections of information are incorporated into the official
OMB inventory of currently approved collections of information. Copies
of the Paperwork Reduction Act Submission, supporting statements and
approved collection of information instrument(s) 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.
[[Page 13493]]
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance
Officer --Michelle Shore--Division of Research and Statistics, Board of
Governors of the Federal Reserve System, Washington, DC 20551 (202-452-
3829).
OMB Desk Officer--Mark Menchik--Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 10235, Washington, DC 20503, or e-mail to
mmenchik@omb.eop.gov.
Final approval under OMB delegated authority of the extension for three
years, with revision, of the following reports
1. Report title: Weekly Report of Assets and Liabilities for Large
Banks and Weekly Report of Selected Assets
Agency form number: FR 2416 and FR 2644
OMB Control number: 7100-0075
Frequency: Weekly
Reporters: U.S.-chartered commercial banks
Annual reporting hours: FR 2416, 22,386 hours; FR 2644, 80,652
hours
Estimated average hours per response: FR 2416, 8.61 hours; FR 2644,
1.41 hours
Number of respondents: FR 2416, 50; FR 2644, 1,100
General description of report: These information collections are
voluntary [12 U.S.C. Sec. 225(a) and 248(a)(2)]. Individual respondent
data are regarded as confidential under the Freedom of Information Act
[5 U.S.C. Sec. 552(b)(4)].
Abstract: The FR 2416, FR 2644, and the Weekly Report of Assets and
Liabilities for Large U.S. Branches and Agencies of Foreign Banks (FR
2069; OMB No. 7100-0030) are referred to collectively as the bank
credit reports. The FR 2416 is a detailed balance sheet that covers
domestic offices of large U.S.-chartered commercial banks. The FR 2644
collects less-detailed information on investments, loans, total assets,
and several memoranda items, covering domestic offices of small U.S.-
chartered commercial banks. The bank credit reports are collected as of
each Wednesday.
These three voluntary reports are mainstays of the Federal
Reserve's reporting system from which data for analysis of current
banking developments are derived. The FR 2416 is used on a stand-alone
basis as the large domestic bank series. The FR 2644 collects sample
data, which are used to estimate universe levels using data from the
quarterly commercial bank Consolidated Reports of Condition and Income
(FFIEC 031 and 041; OMB No. 7100-0036) (Call Report). Data from the
bank credit reports, together with data from other sources, are used
for constructing weekly estimates of bank credit, of sources and uses
of bank funds, and of a balance sheet for the banking system as a
whole.
The Federal Reserve publishes the data in aggregate form in the
weekly H.8 statistical release, Assets and Liabilities of Commercial
Banks in the United States, which is followed closely by other
government agencies, the banking industry, the financial press, and
other users. This release provides a balance sheet for the banking
industry as a whole and data disaggregated by its large domestic, small
domestic, and foreign-related components.
Current Actions: On January 11, 2007, the Federal Reserve published
a notice in the Federal Register (72 FR 1325) requesting public comment
for 60 days on the extension, with revision, of the FR 2416 and FR
2069. The comment period for this notice expired on March 12, 2007. The
Federal Reserve received one supportive comment letter from a federal
agency describing its use of the data to prepare monthly, quarterly,
and annual estimates of personal interest payments, a component of
personal outlays in the national income and product accounts.
2. Report title: Weekly Report of Assets and Liabilities for Large
U.S. Branches and Agencies of Foreign Banks
Agency form number: FR 2069
OMB Control number: 7100-0030
Frequency: Weekly
Reporters: U.S. branches and agencies of foreign banks
Annual reporting hours: 14,560 hours
Estimated average hours per response: 4.00 hours
Number of respondents: 70
General description of report: This information collection is
voluntary [12 U.S.C. Sec. Sec. 248(a)(2) and 3105(a)(2)]. Individual
respondent data are regarded as confidential under the Freedom of
Information Act [5 U.S.C. Sec. 552(b)(4)].
Abstract: The FR 2069 is a detailed balance sheet that covers large
U.S. branches and agencies of foreign banks. This report, along with
the FR 2416 and FR 2644, is collected as of each Wednesday.
These three voluntary reports are mainstays of the Federal
Reserve's reporting system from which data for analysis of current
banking developments are derived. The FR2069 collects sample data,
which are used to estimate universe levels using data from the
quarterly Report of Assets and Liabilities of U.S. Branches and
Agencies of Foreign Banks (FFIEC 002; OMB No. 7100-0032). Data from the
bank credit reports, together with data from other sources, are used
for constructing weekly estimates of bank credit, of sources and uses
of bank funds, and of a balance sheet for the banking system as a
whole.
The Federal Reserve publishes the data in aggregate form in the
weekly H.8 statistical release, Assets and Liabilities of Commercial
Banks in the United States, which is followed closely by other
government agencies, the banking industry, the financial press, and
other users. This release provides a balance sheet for the banking
industry as a whole and data disaggregated by its large domestic, small
domestic, and foreign-related components.
Current Actions: On January 11, 2007, the Federal Reserve published
a notice in the Federal Register (72 FR 1325) requesting public comment
for 60 days on the extension, with revision, of the FR 2069. The
comment period for this notice expired on March 12, 2007. The Federal
Reserve did not receive any comments.
3. Report titles: Report of Changes in Organizational Structure,
Annual Report of Bank Holding Companies
Agency form numbers: FR Y-10 and FR Y-6
OMB Control numbers: 7100-0297
Effective Dates: FR Y-6, December 31, 2007; FR Y-10, April 30, 2008
Frequency: Event-generated, annual
Reporters: Bank holding companies (BHCs), foreign banking
organizations (FBOs), member banks, Edge and agreement corporations
Annual reporting hours: FR Y-10, 16,608 hours; FR Y-6, 27,069 hours
Estimated average hours per response: FR Y-10, 1.00 hour; FR Y-6,
5.25 hours;
Number of respondents: FR Y-10, 2,768; FR Y-6, 5,156
General description of report: These information collections are
mandatory under the Federal Reserve Act, the BHC Act, and the
International Banking Act (12 U.S.C. 248 (a)(1), 321, 601, 602, 611a,
615, 1843(k), 1844(c), and 3106, and Regulations K and Y (12 CFR
211.13(c), 225.5(b), and 225.87). Individual respondent data are not
considered confidential. However, respondents may request confidential
treatment for any information that they believe is subject to an
exemption from disclosure under the FOIA, 5 U.S.C. Sec. 552(b).
Abstract: The FR Y-10 is an event-generated information collection
submitted by top-tier domestic BHCs, including financial holding
companies (FHCs), and state member banks unaffiliated with a BHC, to
capture changes in their regulated investments and activities. The
Federal Reserve uses the data to monitor structure information on
subsidiaries and
[[Page 13494]]
regulated investments of these entities engaged in banking and
nonbanking activities.
The FR Y-6 is an annual information collection submitted by top-
tier BHCs and nonqualifying FBOs. It collects financial data, an
organization chart, and information about shareholders. The Federal
Reserve uses the data to monitor holding company operations and
determine holding company compliance with the provisions of the BHC Act
and Regulation Y (12 CFR 225).
Current Actions: On September 13, 2006, the Federal Reserve
published a notice in the Federal Register (71 FR 54075) requesting
public comment for 60 days on the extension, with revision, of the
Structure Reports.\1\ The comment period for this notice expired on
November 13, 2006. The Board received comment letters from four large
BHCs and three industry trade associations. Most of these comments were
addressed in a final Federal Register notice dated December 28, 2006
(71 FR 78207). In this notice, the Federal Reserve stated that it was
continuing to evaluate several substantive comments on the collection
of domestic branch data and would address these comments in a separate
Federal Register notice in 2007. Below is a summary of the original
proposal, a summary of the comments received, and the modifications to
the original proposal.
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\1\ The Structure Reports included in the initial notice were
the Report of Changes in Organizational Structure (FR Y-10), the
Report of Changes in FBO Organizational Structure (FR Y-10F), the
Supplement to the Report of Changes in Organizational Structure (FR
Y-10S), the Notification of Foreign Branch Status (FR 2058), the
Annual Report of Bank Holding Companies (FR Y-6), and the Annual
Report of Foreign Banking Organizations (FR Y-7).
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Original Proposal
FR Y-6 Organization Chart
The Federal Reserve proposed to add to the organization chart an
annual requirement for institutions to verify a list of domestic
branches that the Federal Reserve has on file for the institution. The
list of domestic branches would include those of depository
institutions and Edge and agreement corporations held directly or
indirectly by the respondent.
The Federal Reserve would provide institutions with a hardcopy of
their data and, in response to industry feedback, a means for
institutions to download their data in a spreadsheet format. The
institutions would be required to return to the Federal Reserve an
annotated document incorporating any changes or corrections to the
data. The effective date for this proposed change would have been
December 31, 2006.
FR Y-10 Domestic Branch Schedule
The Federal Reserve proposed to add a schedule to collect data on
domestic branches and offices of depository institutions, held directly
or indirectly, and domestic branches of Edge and agreement
corporations. Data regarding branch openings, acquisitions, sales,
closings or relocations would be collected on an event-generated basis,
parallel to the other schedules on the FR Y-10, within thirty calendar
days following the event. Institutions would be permitted to combine
multiple transactions occurring within a 30-day period into a single
monthly filing. The effective date for this proposed change would have
been June 30, 2007.
Data would be submitted for the following branches and offices:
1. Full service (brick and mortar, retail) - traditional offices.
2. Electronic banking - offices where Internet and other similar
deposits are booked.
3. Limited service (military, drive-through, mobile or seasonal,
and retail) - limited, but often take or include deposits.
4. Loan production offices (LPOs) and consumer credit - limited,
normally nondeposit, but extend credit.
5. Trust - limited and nondeposit
6. Administrative (administrative, contractual, messenger) - all
other limited and nondeposit
Summary of Comments
Several commenters indicated that adding a schedule to the FR Y-10
to collect data on domestic branches would be overly burdensome and may
be duplicative of other information collected by the Federal Reserve or
other regulators. As explained in the initial proposal, the current
process for gathering domestic branch structure data is inadequate.
Branch data for domestic state member banks are communicated to the
Federal Reserve primarily through the application process. Information
for all other domestic bank branches (branches of national and
nonmember banks) is obtained by searching Federal Deposit Insurance
Corporation (FDIC) and Office of the Comptroller of the Currency (OCC)
bulletins. The results of this process are data that are not consistent
and are often stale. The timing and extent of notifications to various
bank regulators do not allow for consistent maintenance of the data.
For example, branch openings and closings are reported with different
lags and through different channels. Also, domestic bank branch data
are submitted to the FDIC on the Summary of Deposits (OMB No. 3064-
0061) as of June 30 each year.\2\ However, the volume of branch
structure changes is large. As a result, the relevancy of the annual
data substantially diminishes over time. The Federal Reserve needs a
formal information collection to ensure that these data are consistent,
complete, and current.
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\2\ Thrift branches are reported as of June 30 each year to the
OTS, on their annual Branch Office Survey (OMB No. 1550-0004).
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One commenter questioned the usefulness of the data, since only
institutions regulated by the Federal Reserve would be required to
submit the data. This commenter noted that the data would be incomplete
for analyzing the competitive effects of proposed bank mergers and
acquisitions in specific markets. As described in the original
proposal, 95 percent of all domestic banking branches and 82 percent of
all banking and thrift branches would be covered by this information
collection. Information for the remaining small percentage of branches
would continue to be collected using the current process for gathering
domestic branch structure data discussed above. Although the
information for these branches will not be as reliable as that obtained
from the FR Y-10 respondents, the overall quality of the branch data
will be dramatically improved by this framework.
Several commenters asked the Federal Reserve to coordinate with the
other agencies to collect consistent structure data. The Federal
Reserve acknowledges that coordination with other agencies could
achieve organizational and technical efficiencies for both banking
organizations and the regulatory community. The Federal Reserve has
been in contact with the other agencies during the development of this
proposal. Discussions among the regulatory agencies regarding possible
gains from coordination, as well as changes and enhancements to the
technological platforms used for the collection are ongoing.
Two commenters requested amending the information collection to
allow respondents to provide their complete list of branches monthly on
a separate report rather than providing changes on an event-generated
basis on the FR Y-10. The Federal Reserve believes that the data would
be more accurately and efficiently collected if banking organizations
submit changes directly to the Federal Reserve, rather than requiring
Federal Reserve staff to discern changes by comparing monthly filings.
Furthermore, relative to existing
[[Page 13495]]
branches, the number of branch openings, closings, sales, and
relocations is quite small. The current proposal allows for greater
flexibility in how the schedule is filed, which should allow banks to
find efficient ways to transmit the data.
One commenter requested clarification of the administrative branch
type. This term was defined in the draft instructions as a branch that
has limited nondeposit functions, including back office operations and
check processing facilities.
Modifications to the Original Proposal
In response to comments and industry feedback, the Federal Reserve
approved the following modifications to the original proposal:
Eliminating LPOs, consumer credit offices, and
administrative offices from the list of reportable branches on the FR
Y-6 and FR Y-10;
Excluding from the FR Y-10 address changes that result
from changes in street names or zip codes, with no actual change in the
physical location of the branch;
Making FR Y-10 reporting of branch relocations of less
than 1,000 feet optional, if the move does not involve a change of
county; and
Changing the implementation dates to December 31, 2007,
for the FR Y-6 revisions and April 30, 2008, for the FR Y-10 revisions.
Final approval under OMB delegated authority the implementation of the
following survey:
Report title: Central Bank Survey of Foreign Exchange and
Derivatives Market Activity
Agency form number: FR 3036
OMB control number: 7100-0285
Frequency: One-time
Reporters: Financial institutions that serve as intermediaries in
the wholesale foreign exchange and derivatives market and dealers.
Annual reporting hours: 3,150 hours
Estimated average hours per response: Turnover survey: 51 hours;
outstandings survey: 60 hours
Number of respondents: 60
General description of report: This information collection is
voluntary (12 U.S.C. 225a, 248(a)(2), 358, and 3105(c)) and is given
confidential treatment (5 U.S.C. Sec. 552(b)(4)).
Abstract: The FR 3036 is the U.S. part of a global data collection
that is conducted by central banks every three years. More than fifty
central banks plan to conduct the survey in 2007. The Bank for
International Settlements compiles national data from each central bank
to produce global market statistics.
The Federal Reserve System and other government agencies use the
survey to monitor activity in the foreign exchange and derivatives
markets. Respondents use the published data to gauge their market
share.
Current actions: On January 11, 2007, the Federal Reserve published
a notice in the Federal Register (72 FR 1325) requesting public comment
for 60 days on the implementation of the FR 3036 survey. The comment
period for this notice expired on March 12, 2007. The Federal Reserve
received no comments on the proposed survey and will implement it as
proposed.
Board of Governors of the Federal Reserve System, March 16, 2007.
Jennifer J. Johnson
Secretary of the Board
[FR Doc. E7-5192 Filed 3-21-07; 8:45 am]
BILLING CODE 6210-01-S