Federal Register / Vol. 60, No. 28 / Friday, February 10, 1995 / Notices 7969

1 Copies of the Minutes of the Federal Open

Market Committee meeting of December 20, 1994,

which include the domestic policy directive issued

at that meeting, are available upon request to the

Board of Governors of the Federal Reserve System,

Washington, D.C. 20551. The minutes are published

in the Federal Reserve Bulletin and in the Board’s

annual report.

A. The Character of the FAS 114

Allowance

The FFIEC has concluded that FAS

114 sets forth a method for estimating a

portion of an institution’s allowance for

loan and lease losses. Therefore, the

regulatory capital treatment of the ALLL

for institutions will not be affected by

the adoption of FAS 114 for regulatory

reporting purposes. Consistent with this

determination, the ALLL of institutions

will continue to be reported net of any

identified losses and will be includible

in Tier 2 capital, subject to current

limits.

In concluding that the portion of the

allowance established pursuant to FAS

114 is general in nature, the FFIEC notes

that FAS 114 in no way affects

regulatory charge-off policies and is

reiterating that these policies require

banks to promptly charge-off all

identified losses and require thrifts to

either promptly charge-off identified

losses or provide for them using

separate, specific allowances that may

not be included in regulatory capital.

With respect to impaired collateraldependent loans, any portion of the loan

balance that exceeds the amount that is

adequately secured by the fair value of

the collateral is generally classified as

loss by examiners. Consequently, the

FFIEC notes that such losses on

collateral-dependent loans are excluded

from the general allowance and Tier 2

capital. Because of the conclusions on

the treatment of FAS 114 allowances, no

changes are required in the agencies’

regulatory capital rules. The FFIEC

further notes that the portion of the

allowance established pursuant to FAS

114 is available to meet losses in any

part of the loan and lease portfolio and

that institutions currently use a number

of techniques in estimating the overall

adequacy of their ALLL.

B. Nonaccrual Policies

The FFIEC has also decided to retain

its existing nonaccrual policies

governing the recognition of interest

income. As noted above, FASB has

amended FAS 114 by issuing FAS 118

to remove the provisions describing

how income on an impaired loan should

be reported. Thus, the agencies’

nonaccrual standards are not

inconsistent with GAAP. Furthermore,

as noted in the request for comment

included in the Federal Register of May

17, 1994, the agencies’ nonaccrual

policies also provide many supervisory

benefits, and retention of nonaccrual

policies reduces regulatory burden by

permitting institutions to continue their

current reporting systems.

Consistent with its determinations

with respect to the Call Report, the

FFIEC is not recommending any

changes to regulatory nonaccrual

standards in the 002 Report as a result

of FAS 114. Accordingly, current

regulatory nonaccrual standards will

continue to apply to U.S. branches and

agencies of foreign banks.

Dated: February 7, 1995.

Keith J. Todd,

Assistant Executive Secretary, Federal

Financial Institutions Examination Council.

[FR Doc. 95–3392 Filed 2–9–95; 8:45 am]

BILLING CODE 6210–01–M

FEDERAL RESERVE SYSTEM

Federal Open Market Committee;

Domestic Policy Directive of December

20, 1994

In accordance with § 271.5 of its rules

regarding availability of information (12

CFR part 271), there is set forth below

the domestic policy directive issued by

the Federal Open Market Committee at

its meeting held on December 20, 1994.1

The directive was issued to the Federal

Reserve Bank of New York as follows:

The information reviewed at this

meeting suggests a further pickup in

economic growth in recent months.

Nonfarm payroll employment rose

sharply in November, and the civilian

unemployment rate declined to 5.6

percent. Industrial production registered

another large increase in November and

capacity utilization moved up further

from already high levels. Retail sales

have continued to rise rapidly. Housing

starts increased appreciably in

November. Orders for nondefense

capital goods point to a continued

strong expansion in spending on

business equipment; permits for

nonresidential construction have been

trending higher. The nominal deficit on

U.S. trade in goods and services

widened somewhat in October from its

average rate in the third quarter. Prices

of many materials have continued to

move up rapidly, but broad indexes of

prices for consumer goods and services

have increased moderately on average

over recent months.

On November 15, 1994, the Board of

Governors approved an increase from 4

to 4-3/4 percent in the discount rate,

and in line with the Committee’s

decision the increase was allowed to

show through fully to interest rates in

reserve markets. In the period since the

November meeting, short-term interest

rates have risen considerably while

long-term rates have declined slightly.

The trade-weighted value of the dollar

in terms of the other G-10 currencies

recovered further over the intermeeting

period.

Growth of M2 resumed in November

after several months of decline, while

M3 expanded moderately further. For

the year through November, M2 grew at

a rate at the bottom of the Committee’s

range for 1994 and M3 at a rate in the

lower half of its range for the year. Total

domestic nonfinancial debt has

continued to expand at a moderate rate

in recent months and for the year-todate it has grown at a rate in the lower

half of its monitoring range.

The Federal Open Market Committee

seeks monetary and financial conditions

that will foster price stability and

promote sustainable growth in output.

In furtherance of these objectives, the

Committee at its meeting in July

reaffirmed the ranges it had established

in February for growth of M2 and M3 of

1 to 5 percent and 0 to 4 percent

respectively, measured from the fourth

quarter of 1993 to the fourth quarter of

1994. The Committee anticipated that

developments contributing to unusual

velocity increases could persist during

the year and that money growth within

these ranges would be consistent with

its broad policy objectives. The

monitoring range for growth of total

domestic nonfinancial debt was

maintained at 4 to 8 percent for the year.

For 1995, the Committee agreed on

tentative ranges for monetary growth,

measured from the fourth quarter of

1994 to the fourth quarter of 1995, of 1

to 5 percent for M2 and 0 to 4 percent

for M3. The Committee provisionally set

the associated monitoring range for

growth of domestic nonfinancial debt at

3 to 7 percent for 1995. The behavior of

the monetary aggregates will continue to

be evaluated in the light of progress

toward price level stability, movements

in their velocities, and developments in

the economy and financial markets.

In the implementation of policy for

the immediate future, the Committee

seeks to maintain the existing degree of

pressure on reserve positions. In the

context of the Committee’s long-run

objectives for price stability and

sustainable economic growth, and

giving careful consideration to

economic, financial, and monetary

developments, somewhat greater reserve

restraint would or slightly lesser reserve

restraint might be acceptable in the

intermeeting period. The contemplated
7970 Federal Register / Vol. 60, No. 28 / Friday, February 10, 1995 / Notices

reserve conditions are expected to be

consistent with modest growth in M2

and M3 over coming months.

By order of the Federal Open Market

Committee, February 6, 1995.

Donald L. Kohn,

Secretary, Federal Open Market Committee.

[FR Doc. 95–3337 Filed 2–9–95; 8:45 am]

BILLING CODE 6210–01–F

Albert Bowman, et al.; Change in Bank

Control Notices; Acquisitions of

Shares of Banks or Bank Holding

Companies

The notificants listed below have

applied under the Change in Bank

Control Act (12 U.S.C. 1817(j)) and §

225.41 of the Board’s Regulation Y (12

CFR 225.41) to acquire a bank or bank

holding company. The factors that are

considered in acting on the notices are

set forth in paragraph 7 of the Act (12

U.S.C. 1817(j)(7)).

The notices are available for

immediate inspection at the Federal

Reserve Bank indicated. Once the

notices have been accepted for

processing, they will also be available

for inspection at the offices of the Board

of Governors. Interested persons may

express their views in writing to the

Reserve Bank indicated for that notice

or to the offices of the Board of

Governors. Comments must be received

not later than February 24, 1995.

A. Federal Reserve Bank of

Minneapolis (James M. Lyon, Vice

President) 250 Marquette Avenue,

Minneapolis, Minnesota 55480:

1. Albert Bowman, Rhame, North

Dakota; Lorraine Bowman, Rhame,

North Dakota; Roger Berglund, Bowman,

North Dakota; Susan Berglund,

Bowman, North Dakota; Gwenn Jones,

Bowman, North Dakota; Wendy

Jorgenson, Bismarck, North Dakota;

Bruce Bowman, Rhame, North Dakota;

and Dakota Western Bank Profit Sharing

Plan, Bowman, North Dakota

(collectively, the Bowman Group), to

acquire an additional 46.45 percent, for

a total of 100 percent, of the voting

shares of Dakota Western Bankshares,

Inc., Bowman, North Dakota, and

thereby indirectly acquire Dakota

Western Bank, Bowman, North Dakota.

Board of Governors of the Federal Reserve

System, February 6, 1995.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 95–3338 Filed 2–9–95; 8:45 am]

BILLING CODE 6210–01–F

David Randall Martin Trust No.1, W.

Scott Martin, Trustee; Change in Bank

Control Notices; Acquisitions of

Shares of Banks or Bank Holding

Companies; Correction

This notice corrects a notice (FR Doc.

95-2417) published on page 6120 of the

issue for Wednesday, February 1, 1995.

Under the Federal Reserve Bank of

Dallas heading, the entry for David

Randall Martin Trust No.1, W. Scott

Martin, Trustee, is revised to read as

follows:

1. David Randall Martin Trust No.1,

W. Scott Martin, Trustee,Tulsa,

Oklahoma; to acquire an additional 7.8

percent, for a total of 21 percent;

Timothy Christopher Martin Trust No.

1, W. Scott Martin, Trustee, Tulsa,

Oklahoma, to acquire an additional 6.8

percent, for a total of 21 percent; and

Julie Catherine Martin Trust No. 1, W.

Scott Martin, Trustee, Tulsa, Oklahoma,

to acquire an additional 5.7 percent, for

a total of 21 percent, of the voting shares

of First Burkburnett Bancshares, Inc.,

Burkburnett, Texas, and thereby

indirectly acquire First National Bank in

Burkburnett, Burkburnett, Texas.

Comments on this application must

be received by February 15, 1995.

Board of Governors of the Federal Reserve

System, February 6, 1995.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 95–3339 Filed 2–9–95; 8:45 am]

BILLING CODE 6210–01–F

Foxdale Bancorp, Inc., et al.;

Formations of; Acquisitions by; and

Mergers of Bank Holding Companies

The companies listed in this notice

have applied for the Board’s approval

under section 3 of the Bank Holding

Company Act (12 U.S.C. 1842) and §

225.14 of the Board’s Regulation Y (12

CFR 225.14) to become a bank holding

company or to acquire a bank or bank

holding company. The factors that are

considered in acting on the applications

are set forth in section 3(c) of the Act

(12 U.S.C. 1842(c)).

Each application is available for

immediate inspection at the Federal

Reserve Bank indicated. Once the

application has been accepted for

processing, it will also be available for

inspection at the offices of the Board of

Governors. Interested persons may

express their views in writing to the

Reserve Bank or to the offices of the

Board of Governors. Any comment on

an application that requests a hearing

must include a statement of why a

written presentation would not suffice

in lieu of a hearing, identifying

specifically any questions of fact that

are in dispute and summarizing the

evidence that would be presented at a

hearing.

Unless otherwise noted, comments

regarding each of these applications

must be received not later than March

6, 1995.

A. Federal Reserve Bank of Chicago

(James A. Bluemle, Vice President) 230

South LaSalle Street, Chicago, Illinois

60690:

1. Foxdale Bancorp, Inc., South Elgin,

Illinois; to become a bank holding

company by acquiring 100 percent of

the voting shares of Foxdale Bank (in

organization), South Elgin, Illinois, a de

novo bank.

B. Federal Reserve Bank of Dallas

(Genie D. Short, Vice President) 2200

North Pearl Street, Dallas, Texas 75201-

2272:

1. CRB Financial Corp., San Antonio,

Texas; to become a bank holding

company by acquiring 100 percent of

the voting shares of Camino Real

Delaware, Inc., Wilmington, Delaware,

and thereby indirectly acquire Camino

Real Bancshares, Inc., San Antonio,

Texas, and Camino Real Bank, N.A.,

Eagle Pass, Texas.

Board of Governors of the Federal Reserve

System, February 6, 1995.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 95–3340 Filed 2–9–95; 8:45 am]

BILLING CODE 6210–01–F

North Fork Bancorporation, Inc.;

Formation of, Acquisition by, or

Merger of Bank Holding Companies;

and Acquisition of Nonbanking

Company

The company listed in this notice has

applied under § 225.14 of the Board’s

Regulation Y (12 CFR 225.14) for the

Board’s approval under section 3 of the

Bank Holding Company Act (12 U.S.C.

1842) to become a bank holding

company or to acquire voting securities

of a bank or bank holding company. The

listed company has also applied under

§ 225.23(a)(2) of Regulation Y (12 CFR

225.23(a)(2)) for the Board’s approval

under section 4(c)(8) of the Bank

Holding Company Act (12 U.S.C.

1843(c)(8)) and § 225.21(a) of Regulation

Y (12 CFR 225.21(a)) to acquire or

control voting securities or assets of a

company engaged in a nonbanking

activity that is listed in § 225.25 of

Regulation Y as closely related to

banking and permissible for bank

holding companies, or to engage in such

an activity. Unless otherwise noted,

these activities will be conducted

throughout the United States.