[Federal Register Volume 62, Number 218 (Wednesday, November 12, 1997)]
[Rules and Regulations]
[Pages 60639-60640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29762]


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FEDERAL RESERVE SYSTEM

12 CFR Part 225

[Regulation Y; Docket Nos. R-0935; R-0936]


Bank Holding Companies and Change in Bank Control (Regulation Y); 
Correction

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; correction to an amendment.

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SUMMARY: The Board is correcting an error in the text of the 
comprehensive amendments to Regulation Y (Bank Holding Companies and 
Change in Bank Control) that appeared in the Federal Register on 
February 28, 1997. The correction restores the time limit required for 
Board action in processing nonexpedited notices under section 4 of the 
Bank Holding Company Act (BHC Act) that was inadvertently deleted from 
the text of the final rule.

EFFECTIVE DATE: November 12, 1997.

FOR FURTHER INFORMATION CONTACT: Walter R. McEwen, Attorney (202/452-
3321), Legal Division, Board of Governors of the Federal Reserve 
System. For the hearing impaired only, contact Diane Jenkins, 
Telecommunication Device for the Deaf (TDD), (202/452-3544), Board of 
Governors of the Federal Reserve System, 20th Street and Constitution 
Avenue, N.W., Washington, D.C. 20551.

SUPPLEMENTARY INFORMATION: On February 19, 1997, the Board adopted 
comprehensive amendments to Regulation Y (Bank Holding Companies and 
Change in Bank Control) to improve the competitiveness of bank holding 
companies by eliminating unnecessary regulatory burden and operating 
restrictions, and by streamlining the application/notice process.\1\ In 
taking this action, the Board stated in the preamble that proposals 
that did not qualify for expedited processing under the new streamlined 
procedures would be processed under the Board's current procedures.\2\ 
The procedures at that time and the specific provisions of the BHC Act, 
required action on any notice considered by the Board to engage in 
nonbanking activities under section 4 of the Bank Holding Company Act 
(``BHC Act'') within 60 calendar days after the submission of a 
complete notice, and the text of the amendments proposed for public 
comment contained a provision describing the time limit required for 
Board action.\3\ This 60-day processing schedule was included in the 
rule as proposed in August 1996.
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    \1\ See 62 FR 9290 (February 28, 1997).
    \2\ See 62 FR at 9293.
    \3\ See 225.24(d)(2)(ii), 61 FR 47242, 47272 (September 6, 
1996).
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    The final rule, however, inadvertently omitted that provision. The 
correction would restore the time-limit provision as originally 
proposed, thereby conforming the final rule to the Board's stated 
intent in the preamble and to the specific provisions of the BHC Act. 
The notice also changes certain cross-references in light of this 
amendment.
    The provisions of 5 U.S.C. 553 relating to notice, public 
participation, and deferred effective date do not apply

[[Page 60640]]

to this amendment because the change to be effected corrects an 
inadvertent deletion from the rule as proposed, is necessary to prevent 
confusion in the administration of the Board's processing guidelines 
for nonexpedited notices under section 4 of the BHC Act, is technical 
and procedural in nature, and does not constitute a substantive rule 
subject to the requirements of that section. Moreover, because it 
restores a statutorily required processing schedule, the proposal 
reduces burden by assuring timely processing of applications subject to 
System action.

List of Subjects in 12 CFR Part 225

    Administrative practice and procedure, Banks, banking, Federal 
Reserve System, Holding companies, Reporting and recordkeeping 
requirements, Securities.

    For the reasons set forth in the preamble, the Board amends part 
225 of chapter II of title 12 of the Code of Federal Regulations as 
follows:

PART 225--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(REGULATION Y)

    1. The authority citation for part 225 continues to read as 
follows:

    Authority: 12 U.S.C. 1817(j)(13), 1818, 1828o, 1831i, 1831p-1, 
1843(c)(8), 1844(b), 1972(1), 3106, 3108, 3310, 3331-3351, 3907, and 
3909.

    2. Under subpart C, Sec. 225.24 is amended as follows:
    a. Paragraph (d)(2) is revised;
    b. Paragraphs (d)(3) and (d)(4) are redesignated as paragraphs 
(d)(4) and (d)(5); and
    c. A new paragraph (d)(3) is added.
    The revision and addition read as follows:


Sec. 225.24  Procedures for other nonbanking proposals.

* * * * *
    (d) * * *
    (2) Board action; internal schedule. The Board seeks to act on 
every notice referred to it for decision within 60 days of the date 
that the notice is filed with the Reserve Bank. If the Board is unable 
to act within this period, the Board shall notify the notificant and 
explain the reasons and the date by which the Board expects to act.
    (3)(i) Required time limit for System action. The Board or the 
Reserve Bank shall act on any notice under this section within 60 days 
after the submission of a complete notice.
    (ii) Extension of required period for action  (A) In general.--The 
Board may extend the 60-day period required for Board action under 
paragraph (d)(3)(i) of this section for an additional 30 days upon 
notice to the notificant.
    (B) Unlisted activities. If a notice involves a proposal to engage 
in an activity that is not listed in Sec. 225.28, the Board may extend 
the period required for Board action under paragraph (d)(3)(i) of this 
section for an additional 90 days. This 90-day extension is in addition 
to the 30-day extension period provided in paragraph (d)(3)(ii)(A) of 
this section. The Board shall notify the notificant that the notice 
period has been extended and explain the reasons for the extension.
* * * * *
    3. Under subpart C, Sec. 225.25 is amended by revising paragraph 
(b)(1) as follows:


Sec. 225.25  Hearings, alteration of activities, and other matters.

* * * * *
    (b) Approval through failure to act. (1) Except as provided in 
paragraph (a) of this section or Sec. 225.24(d)(5), a notice under this 
subpart shall be deemed to be approved at the conclusion of the period 
that begins on the date the complete notice is received by the Reserve 
Bank or the Board and that ends 60 calendar days plus any applicable 
extension and tolling period thereafter.
* * * * *
    By order of the Board of Governors of the Federal Reserve 
System, under delegated authority, November 6, 1997.
William W. Wiles,
Secretary of the Board.
[FR Doc. 97-29762 Filed 11-10-97; 8:45 am]
BILLING CODE 6210-01-P