22556 Federal Register / Vol. 66, No. 87 / Friday, May 4, 2001 / Notices

vote unless a member of the Board of

Directors requests that an item be

moved to the discussion agenda.

• Disposition of minutes of previous

Board of Directors’ meetings.

• Summary reports, status reports,

and reports of actions taken pursuant to

authority delegated by the Board of

Directors.

• Memorandum and resolution re:

Amended, Revised and Consolidated

Systems of Records.

Discussion Agenda

• Memorandum re: SAIF Assessment

Rates for the Second Semiannual

Assessment Period of 2001.

• Memorandum re: BIF Assessment

Rates for the Second Semiannual

Assessment Period of 2001.

The meeting will be held in the Board

Room on the sixth floor of the FDIC

Building located at 550 17th Street,

NW., Washington, DC.

The FDIC will provide attendees with

auxiliary aids (e.g., sign language

interpretation) required for this meeting.

Those attendees needing such assistance

should call (202) 416–2089 (Voice);

(202) 416–2007 (TTY), to make

necessary arrangements.

Requests for further information

concerning the meeting may be directed

to Mr. Robert E. Feldman, Executive

Secretary of the Corporation, at (202)

898–6757.

Dated: May 1, 2001.

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Executive Secretary.

[FR Doc. 01–11427 Filed 5–2–01; 1:58 pm]

BILLING CODE 6714–01–M

FEDERAL RESERVE SYSTEM

Agency Information Collection

Activities: Submission for OMB

Review; Comment Request

AGENCY: Board of Governors of the

Federal Reserve System (Board).

ACTION: Notice of information collection

to be submitted to OMB for review and

approval under the Paperwork

Reduction Act of 1995.

SUMMARY: In accordance with the

requirements of the Paperwork

Reduction Act of 1995 (44 U.S.C.

chapter 35), the Board, the Federal

Deposit Insurance Corporation (FDIC),

and the Office of the Comptroller of the

Currency (OCC) (the ‘‘agencies’’) may

not conduct or sponsor, and the

respondent is not required to respond

to, an information collection unless it

displays a currently valid Office of

Management and Budget (OMB) control

number. The Board hereby gives notice

that it plans to submit to the Office of

Management and Budget (OMB) on

behalf of the agencies a request for

review of the information collection

system described below. The agencies

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.

On December 28, 2000, the agencies,

under the auspices of the Federal

Financial Institutions Examination

Council (FFIEC), requested public

comment for 60 days on the revision,

without extension, of the currently

approved information collection: the

Report of Assets and Liabilities of U.S.

Branches and Agencies of Foreign Banks

(FFIEC 002). The comment period

expired February 26, 2001.

DATES: Comments must be submitted on

or before June 4, 2001.

ADDRESSES: Interested parties are

invited to submit written comments to

the agency listed below. All comments,

which should refer to the OMB control

number, will be shared among the

agencies.

Written comments should be

addressed to Jennifer J. Johnson,

Secretary, Board of Governors of the

Federal Reserve System, 20th and C

Streets, NW., Washington, DC 20551,

submitted by electronic mail to

regs.comments@federalreserve.gov, or

delivered to the Board’s mailroom

between 8:45 a.m. and 5:15 p.m., and to

the security control room outside of

those hours. Both the mailroom and the

security control room are accessible

from the courtyard entrance on 20th

Street between Constitution Avenue and

C Street, NW. 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 261.12 of the

Board’s Rules Regarding Availability of

Information, 12 CFR 261.12(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

draft copy of the revised FFIEC 002

reporting form may be obtained at the

FFIEC’s web site (www.ffiec.gov). A

copy of the revisions to the collection of

information may also be requested from

Mary M. West, Federal Reserve Board

Clearance Officer, (202) 452–3829,

Division of Research and Statistics,

Board of Governors of the Federal

Reserve System, 20th and C Streets,

NW., Washington, DC 20551.

Telecommunications Device for the Deaf

(TDD) users may contact Capria

Mitchell (202) 872–4984, Board of

Governors of the Federal Reserve

System, 20th and C Streets, NW.,

Washington, DC 20551.

SUPPLEMENTARY INFORMATION: Proposal

to revise the following currently

approved collection of information:

Report Title: Report of Assets and

Liabilities of U.S. Branches and

Agencies of Foreign Banks.

Form Number: FFIEC 002.

OMB Number: 7100–0032.

Frequency of Response: Quarterly.

Affected Public: U.S. branches and

agencies of foreign banks.

Estimated Number of Respondents:

354.

Estimated Total Annual Responses:

1,416.

Estimated Time per Response: 22.50

burden hours.

Estimated Total Annual Burden:

31,860 burden hours.

General Description of Report

This information collection is

mandatory: 12 U.S.C. 3105(b)(2), 1817(a)

(1) and (3), and 3102(b). Except for

select sensitive items, this information

collection is not given confidential

treatment (5 U.S.C. 552(b)(8)). Small

businesses (that is, small U.S. branches

and agencies of foreign banks) are

affected.

Abstract

On a quarterly basis, all U.S. branches

and agencies of foreign banks (U.S.

branches) are required to file detailed

schedules of assets and liabilities in the

form of a condition report and a variety

of supporting schedules. This

information is used to fulfill the

supervisory and regulatory requirements

of the International Banking Act of

1978. The data are also used to augment

the bank credit, loan, and deposit

information needed for monetary policy

and other public policy purposes. The

Federal Reserve System collects and

processes this report on behalf of all

three agencies.

Current Actions

The agencies received one comment

in response to the notice published in

the Federal Register on December 28,

2000, (65 FR 82356) requesting public

comment on the extension with revision

of this information collection. The

commenter supports the revisions to the

FFIEC 002.

Federal Register / Vol. 66, No. 87 / Friday, May 4, 2001 / Notices 22557

The agencies will implement a

number of revisions to streamline the

existing reporting requirements of the

Report of Assets and Liabilities of U.S.

Branches and Agencies of Foreign Banks

(FFIEC 002), consistent with

eliminations and reductions in detail to

the Reports of Condition and Income

(Call Report) (FFIEC 031 and 041) filed

by insured commercial banks and FDICsupervised savings banks. The agencies

are also endeavoring to improve the

relevance of the FFIEC 002 by

identifying new types of information

necessary to monitor new activities and

other recent developments that may

expose institutions to new or different

types of risk.

The revisions to the FFIEC 002

summarized below have been approved

by the FFIEC. The agencies will

implement these changes, except for

new information on fiduciary and

related services, as of the June 30, 2001,

reporting date. New information on

fiduciary and related services will be

effective with the December 31, 2001,

reporting date.

A. Specific Deletions, Reductions in

Detail, and Redefinitions

Schedule RAL—Assets and Liabilities

1. For item 1.d, ‘‘Federal funds sold

and securities purchased under

agreements to resell,’’ combine items

1.d.(1), ‘‘With U.S. branches and

agencies of other foreign banks,’’ and

1.d.(2), ‘‘With other commercial banks

in the U.S.,’’ into a single line item.

2. For item 4.b, ‘‘Federal funds

purchased and securities sold under

agreements to repurchase,’’ combine

items 4.b.(1), ‘‘With U.S. branches and

agencies of other foreign banks,’’ and

4.b.(2), ‘‘With other commercial banks

in the U.S.,’’ into a single line item.

3. Memorandum item 9, ‘‘Mutual fund

and annuity sales during the quarter,’’

will be redefined as ‘‘Assets under the

reporting branch or agency’s

management in proprietary mutual

funds and annuities.’’ For branches and

agencies with proprietary mutual funds

and annuities, reporting the amount of

assets under management should be

significantly less burdensome than

reporting the quarterly sales volume of

both proprietary products and

nonproprietary products. Branches and

agencies without proprietary mutual

funds and annuities will no longer need

to report any information on their

involvement with these products.

4. Memorandum item 12, ‘‘Amount of

assets netted against liabilities to

nonrelated parties (excluding deposits

in insured branches) on the balance

sheet in accordance with generally

accepted accounting principles,’’ will be

eliminated.

5. Statutory or Regulatory

Requirement item S.3.a, ‘‘FDIC asset

maintenance requirement (for FDIC

insured branches only): Average

liabilities,’’ currently collects average

liabilities for the quarter ending on the

report date. The agencies will redefine

this item to collect average liabilities for

the calendar quarter preceding the

quarter ending on the report date. This

redefinition will ensure that, as of a

given report date, the asset maintenance

requirement calculation for FDICinsured branches in Section 347.211 of

the FDIC’s regulations can be

accomplished by using only data filed

on the current FFIEC 002 report. For

example, using the FFIEC 002 report for

the third quarter, eligible assets on the

last day of the third quarter (reported in

item S.3.b) will be divided by average

liabilities for the second quarter

(reported in item S.3.a).

Schedule A—Cash and Balances Due

from Depository Institutions

Memorandum item 1, ‘‘Noninterestbearing balances due from commercial

banks in the U.S. (including their

IBFs),’’ will be deleted.

Schedule C—Loans

The separate loan categories for

‘‘Loans to depository institutions’’ and

‘‘Acceptances of other banks’’ (items 2

and 5, respectively) will be combined.

Schedule E—Deposit Liabilities and

Credit Balances

1. The reporting of demand deposits

by category of depositor in column B of

the body of the deposits schedule will

be eliminated, with branches and

agencies reporting instead only the total

amount of their demand deposits in this

column. Branches and agencies will

continue to provide a category-bycategory breakdown of their total

transaction accounts in column A,

which includes their demand deposits,

but the current duplicate reporting of

demand deposits by category in both

columns A and B will end.

2. Item 6, ‘‘Certified and official

checks,’’ will be combined with

deposits of ‘‘Individuals, partnerships,

and corporations’’ (item 1).

Schedule L—Derivatives and OffBalance-Sheet Items

1. Item 6, ‘‘Participations in

acceptances acquired by the reporting

(non-accepting) branch or agency,’’ will

be deleted.

2. Item 11.b for the gross notional

amount of derivative contracts held for

purposes other than trading that are not

marked to market will be deleted. All

derivative contracts, including those

held for purposes other than trading,

will be marked to market once a branch

or agency adopts FASB Statement No.

133, Accounting for Derivative

Instruments and Hedging Activities,

which is effective for fiscal years

beginning after June 15, 2000. Thus,

item 11.b will no longer have any

relevance in 2001.

3. For branches and agencies with

$100 million or more in total assets:

Items 12.c.(1) and (2) for the gross

positive and gross negative fair values of

derivatives held for purposes other than

trading that are not marked to market

will be deleted because of the effect of

FASB Statement No. 133.

Schedule M—Due From/Due to Related

Institutions in the U.S. and in Foreign

Countries: Part V, Derivatives and OffBalance Sheet Items With Related

Depository Institutions

1. Item 6, ‘‘Participations in

acceptances acquired from related

depository institutions by the reporting

(non-accepting) branch or agency,’’ will

be deleted.

2. Item 11.b for the gross notional

amount of derivative contracts held for

purposes other than trading that are not

marked to market will be deleted. All

derivative contracts, including those

held for purposes other than trading,

will be marked to market once a branch

or agency adopts FASB Statement No.

133, Accounting for Derivative

Instruments and Hedging Activities,

which is effective for fiscal years

beginning after June 15, 2000. Thus,

item 11.b will no longer have any

relevance in 2001.

3. For branches and agencies with

$100 million or more in total assets:

Items 12.c.(1) and (2) for the gross

positive and gross negative fair values of

derivatives held for purposes other than

trading that are not marked to market

will be deleted because of the effect of

FASB Statement No. 133.

Schedule N—Past Due, Nonaccrual, and

Restructured Loans

Memorandum item 2.b, ‘‘Replacement

cost of [past due derivative] contracts

with a positive replacement cost,’’ will

be deleted. Once branches and agencies

adopt FASB Statement No. 133,

Accounting for Derivative Instruments

and Hedging Activities, all of their

derivative contracts will be carried on

the balance sheet at fair value. Since the

replacement cost of a derivative contract

is its fair value and its book value will

also be its fair value, Memorandum

items 2.a, ‘‘Book value of amounts

carried as assets,’’ and 2.b will duplicate

22558 Federal Register / Vol. 66, No. 87 / Friday, May 4, 2001 / Notices

1This FFIEC 002 proposal does not address the

trust reporting requirements that would be

applicable to entities other than U.S. branches and

agencies of foreign banks.

each other. The caption for

Memorandum item 2.a will be revised to

read ‘‘Fair value of amounts carried as

assets.’’

B. New Information

Securitization and Asset Sale Activities

The agencies will revise and expand

the information collected in the FFIEC

002 report to facilitate more effective

analysis of the impact of securitization

and asset sale activities on credit

exposures. In this regard, the agencies

are proposing to introduce a separate

new schedule (Schedule S) that will

comprehensively capture information

related to securitization and asset sale

activities.

Under this proposal, branches and

agencies involved in securitization and

asset sale activities will report quarterend data for seven loan and lease

categories. These data will cover 1–4

family residential loans, home equity

lines, credit card receivables, auto loans,

other consumer loans, commercial and

industrial loans, and all other loans and

all leases. For each loan category,

branches and agencies will report: (1)

The outstanding principal balance of

assets sold and securitized with

servicing retained or with recourse or

seller-provided credit enhancements, (2)

the maximum amount of credit

exposure arising from recourse or credit

enhancements to securitization

structures (separately for those

sponsored by the reporting branch or

agency and those sponsored by other

institutions), (3) the past due amounts

on the underlying securitized assets, (4)

the amount of any commitments to

provide liquidity to the securitization

structures, (5) the outstanding principal

balance of assets sold with servicing

retained or with recourse or sellerprovided credit enhancements that have

not been securitized, and (6) the

maximum amount of credit exposure

arising from assets sold with recourse or

seller-provided credit enhancements

that have not been securitized.

A limited amount of information will

also be collected on credit exposures to

asset-backed commercial paper

conduits. For the home equity line,

credit card receivable, and the

commercial and industrial loan

categories, branches and agencies will

also report the amount of any ownership

(or seller’s) interests in securitizations

that are carried as securities and as

loans and the past due amounts on the

assets underlying the seller’s interests

carried as securities.

Although the new schedule will

collect a considerable amount of

information on these securitization

activities, Schedule S will not affect

most branches and agencies and the

increase in reporting burden associated

with the schedule’s new information

will be confined to a relatively small

segment of the industry.

On a related matter, the agencies will

collect information to facilitate more

effective assessments of credit and other

exposures related to branch and agency

portfolios of asset-backed securities.

Currently all asset-backed securities are

reported in Schedule RAL, item 1.b,

‘‘U.S. Government securities,’’ or item

1.c, ‘‘Other bonds, notes, debentures,

and corporate stock (including state and

local securities),’’ depending on the

issuer or guarantor. The agencies will

add two new items on Schedule RAL to

segregate branch and agency holdings of

mortgage-backed securities and other

asset-backed securities. Collection of

this information will promote riskfocused supervision by enhancing the

agencies’ ability to assess credit

exposures and asset concentrations.

Reporting of Trust Data

The agencies will change the manner

in which branches and agencies report

information on their trust activities.

Branches and agencies that file the

existing Annual Report of Trust Assets

(FFIEC 001) will instead file a new

Fiduciary and Related Services

Schedule (Fiduciary Schedule)

(Schedule T) as part of the FFIEC 002.

Under this proposal, branches and

agencies that have fiduciary or related

activity will be required to report

certain trust information in Schedule T

annually as of December 31.1 This

information includes the number of

accounts and the market value of trust

assets for eight categories of fiduciary

activities. These institutions will also

report data on corporate trust activities,

collective investment funds and

common trust funds, and types of

managed assets held in personal trust

and agency accounts.

In creating Schedule T, modifications

have been made to some of the existing

items currently reported on the FFIEC

001 to improve their value and

usefulness. However, the total number

of separately reportable data items in

the Fiduciary Schedule represents a

decrease of more than 60 percent in the

number of reportable items in the FFIEC

001. Thus, the agencies believe this

proposal will not produce an increase in

reporting burden for trust institutions.

The agencies are proposing to add the

new Fiduciary Schedule to the FFIEC

002 instead of retaining separate trust

reports in order to facilitate the timely

collection and processing of the

information. Institutions filing the

current annual trust reports generally

must submit their reports within 45

days after year-end. Electronically

submitted annual trust reports, first

allowed for year-end 1998 reporting,

have a 75-day filing deadline. By

moving the reporting of fiduciary

information into the FFIEC 002, the

submission deadline for the FFIEC 002

will apply to this reporting requirement.

The length of time that trust institutions

will have for completing the Fiduciary

Schedule will be reduced from 45 days

to 30 days for most institutions and

from 75 days to 30 days for institutions

that file electronically. The

implementation of this Fiduciary

Schedule and the modification of the

submission deadline for this reporting

requirement is consistent with the

reporting treatment currently for

insured commercial banks and FDICsupervised savings banks.

C. Other Issue for Which Public

Comment Is Requested

Eliminating Confidential Treatment for

Certain Past Due and Nonaccrual Data

An important public policy issue for

the agencies has been how to use market

discipline to complement supervisory

resources. Market discipline relies on

market participants having information

about the risks and financial condition

of banking organizations. Disclosure

that increases transparency should lead

to more accurate market assessments of

risk and value. This, in turn, should

result in more effective market

discipline on banking organizations.

Despite this emphasis on market

discipline, the FFIEC and the agencies

currently accord confidential treatment

to the information branches and

agencies report in Schedule N of the

FFIEC 002 report on the amounts of

their loans, leases, and other assets that

are past due, in nonaccrual status, or

restructured and in compliance with

modified terms. In order to give the

public, including branches and

agencies, more complete information on

the level of and trends in asset quality

at individual institutions, the agencies

are proposing to eliminate the

confidential treatment currently

provided for this information beginning

with the amounts reported as of June 30,

2001.

Some financial institutions have held

that information on loans, leases, and

other assets that are past due 30 through

89 days is not a reliable indicator of

future loan losses or of general asset

Federal Register / Vol. 66, No. 87 / Friday, May 4, 2001 / Notices 22559

quality. They further note that market

discipline will be reduced, rather than

enhanced, by the release of information

that is highly susceptible to

misinterpretation to the extent that it

could cause an unjustifiable loss of

funding to the industry. However,

banking supervisors have consistently

found information on loans and leases

past due 30 through 89 days to be

helpful in identifying financial

institutions with emerging asset quality

problems. Therefore, the agencies

believe that such information is a useful

indicator of general asset quality and

will not represent misleading

information to the public.

Currently the agencies publicly

disclose information reported by

insured commercial banks, FDICsupervised savings banks, and bank

holding companies on loans and leases

that are past due 90 days or more and

still accruing, in nonaccrual status, or

restructured and in compliance with

modified terms. The agencies will

publicly disclose reported information

on loans and leases that are past due 30

through 89 days and still accruing for

these institutions effective as of June 30,

2001. However, for periods prior to June

30, 2001, such past due data will not be

publicly disclosed on an individual

institution basis. Disclosing the

information reported on Schedule N of

the FFIEC 002 will also provide for a

consistent reporting treatment with

other U.S. banking institutions.

Request for Comment

Comments submitted in response to

this Notice will be shared among the

agencies and will be summarized or

included in the Board’s request for OMB

approval. All comments will become a

matter of public record. Written

comments should address the accuracy

of the burden estimates and ways to

minimize burden as well as other

relevant aspects of the information

collection requests. Comments are

invited on:

(a) Whether the proposed collection of

information is necessary for the proper

performance of the agencies’ functions,

including whether the information has

practical utility;

(b) The accuracy of the agencies’

estimate of the burden of the

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;

(d) Ways to minimize the burden of

the information collection on

respondents, including through the use

of automated collection techniques or

other forms of information technology;

and

(e) Estimates of capital or start up

costs and costs of operation,

maintenance, and purchase of services

to provide information.

Board of Governors of the Federal Reserve

System, April 30, 2001.

Jennifer J. Johnson,

Secretary of the Board.

[FR Doc. 01–11164 Filed 5–3–01; 8:45 am]

BILLING CODE 6210–01–P

FEDERAL RESERVE SYSTEM

Formations of, Acquisitions by, and

Mergers of Bank Holding Companies

The companies listed in this notice

have applied to the Board for approval,

pursuant to the Bank Holding Company

Act of 1956 (12 U.S.C. 1841 et seq.)

(BHC Act), Regulation Y (12 CFR Part

225), and all other applicable statutes

and regulations to become a bank

holding company and/or to acquire the

assets or the ownership of, control of, or

the power to vote shares of a bank or

bank holding company and all of the

banks and nonbanking companies

owned by the bank holding company,

including the companies listed below.

The applications listed below, as well

as other related filings required by the

Board, are available for immediate

inspection at the Federal Reserve Bank

indicated. The application also will be

available for inspection at the offices of

the Board of Governors. Interested

persons may express their views in

writing on the standards enumerated in

the BHC Act (12 U.S.C. 1842(c)). If the

proposal also involves the acquisition of

a nonbanking company, the review also

includes whether the acquisition of the

nonbanking company complies with the

standards in section 4 of the BHC Act

(12 U.S.C. 1843). Unless otherwise

noted, nonbanking activities will be

conducted throughout the United States.

Additional information on all bank

holding companies may be obtained

from the National Information Center

website at www.ffiec.gov/nic/.

Unless otherwise noted, comments

regarding each of these applications

must be received at the Reserve Bank

indicated or the offices of the Board of

Governors not later than May 29, 2001.

A. Federal Reserve Bank of Chicago

(Phillip Jackson, Applications Officer)

230 South LaSalle Street, Chicago,

Illinois 60690–1414:

1. Henry State Bancorp, Inc., Henry,

Illinois; to become a bank holding

company by acquiring 100 percent of

the voting shares of Henry State Bank,

Henry, Illinois.

B. Federal Reserve Bank of St. Louis

(Randall C. Sumner, Vice President) 411

Locust Street, St. Louis, Missouri

63166–2034:

1. Home Bancshares, Inc., Conway,

Arkansas, to acquire 28.6 percent of the

voting shares of Russellville Bancshares,

Inc., Jonesboro, Arkansas, and thereby

acquire First Arkansas Valley Bank,

Russellville, Arkansas. In addition,

Russellville Bancshares, Inc., also has

applied to become a bank holding

company by acquiring 86 percent of the

First Arkansas Valley Bank, Russellville,

Arkansas.

Board of Governors of the Federal Reserve

System, April 30, 2001.

Robert deV. Frierson

Associate Secretary of the Board.

[FR Doc. 01–11166 Filed 5–3–01; 8:45 am]

BILLING CODE 6210–01–S

FEDERAL RESERVE SYSTEM

Formations of, Acquisitions by, and

Mergers of Bank Holding Companies;

Correction

This notice corrects a notice (FR Doc.

01-10469) published on pages 21157

and 21158 of the issue for Friday, April

27, 2001.

Under the Federal Reserve Bank of St.

Louis heading, the entry for

Harrodsburg First Financial Bancorp,

Inc., Harrodsburg, Kentucky, is revised

to read as follows:

A. Federal Reserve Bank of St. Louis

(Randall C. Sumner, Vice President) 411

Locust Street, St. Louis, Missouri

63166–2034:

1. Harrodsburg First Financial

Bancorp, Inc., to become a bank holding

company by acquiring 100 percent of

the voting shares of Citizens Financial

Bank, Glasgow, Kentucky.

In connection with this application,

Applicant also has applied to retain

ownership of its thrift subsidiary, First

Financial Bank, Harrodsburg, Kentucky,

and thereby engage in operating a

savings association, pursuant to §

225.24(b)(4) of Regulation Y.

Comments on this application must

be received by May 21, 2001.

Board of Governors of the Federal Reserve

System, April 30, 2001.

Robert deV. Frierson

Associate Secretary of the Board.

[FR Doc. 01–11167 Filed 5–3–01; 8:45 am]

BILLING CODE 6210–01–S