12216 Federal Register / Vol. 60, No. 43 / Monday, March 6, 1995 / Notices

Number of respondents: 5,493.

Small businesses are affected.

General description of report: This

information collection is mandatory to

obtain or retain a benefit [12 U.S.C.

1844(b) and (c)] and 12 CFR 225.5 of

Regulation Y. Confidential treatment is

not routinely given to the information in

these reports. However, confidential

treatment for the report information can

be requested, in whole or part, in

accordance with the instructions to the

form.

Abstract: The FR Y-6 is an annual

report filed by the top-tier bank holding

companies. Foreign banking

organizations as defined by section

211.23(b) of Regulation K are not

required to file this form. The FR Y-6

consists of consolidated and parent

company financial statements in the

company’s own format.

The FR Y-6 report is the Federal

Reserve’s principal source of internally

generated and independently audited

financial data on individual bank

holding companies and their banking

and nonbanking subsidiaries. The report

enables the Federal Reserve to monitor

bank holding company operations and

to ensure that the operations are

conducted in a safe and sound manner

and in compliance with the provisions

of the Bank Holding Company Act and

Regulation Y.

The Federal Reserve approved the

following revisions to the FR Y-6:

(1) Eliminate the requirement to

submit consolidated and parent

company financial statements.

(2) Revise the requirement for audited

financial statements to include only

holding companies with assets of $500

million or more.

(3) Eliminate the requirement to

submit nonbank subsidiary financial

statements. This information is

currently proposed to be incorporated

into an expanded standardized FR Y-11

report (Financial Statement of Nonbank

Subsidiaries of Bank Holding

Companies).

(4) Eliminate the requirement to

submit certified copies of amendments

to organizational documents.

(5) Eliminate the collection of

information on insider loans.

(6) Eliminate the confirmation of

changes in investments and activities.

Board of Governors of the Federal Reserve

System, February 28, 1995.

William W. Wiles,

Secretary of the Board.

[FR Doc. 95-5368 Filed 3-3-95; 8:45AM]

Billing Code 6210-01-F

Agency Forms Under Review

Background:

Notice is hereby given of the

submission of proposed information

collection(s) to the Office of

Management and Budget (OMB) for its

review and approval under the

Paperwork Reduction Act (Title 44

U.S.C. Chapter 35) and under OMB

regulations on Controlling Paperwork

Burdens on the Public (5 CFR Part

1320). A copy of the proposed

information collection(s) and supporting

documents is available from the agency

clearance officer listed in the notice.

Any comments on the proposal should

be sent to the agency clearance officer

and to the OMB desk officer listed in the

notice.

DATES: Comments are welcome and

should be submitted on or before March

20, 1995.

FOR FURTHER INFORMATION CONTACT:

Federal Reserve Board Clearance

Officer—Mary M. McLaughlin—

Division of Research and Statistics,

Board of Governors of the Federal

Reserve System, Washington, D.C.

20551 (202-452-3829); for the hearing

impaired only, telecommunications

device for the deaf (TTD) (202-452-

3544), Dorothea Thompson, Board of

Governors of the Federal Reserve

System, Washington, D.C. 20551.

OMB Desk Officer—Milo Sunderhauf—

Office of Information and Regulatory

Affairs, Office of Management and

Budget, New Executive Office

Building, Room 3208, Washington,

D.C. 20503 (202-395-7340)

Request for OMB approval to revise

the following report:

1. Report title: Consolidated Reports

of Condition and Income (Call Report).

Agency form number: FFIEC 031-034.

OMB Docket number: 7100-0036.

Frequency: Quarterly.

Reporters: State member banks.

Annual reporting hours: 169,592.

Estimated average hours per response:

43.0.

Number of respondents: 986.

Small businesses are affected.

General description of report: This

information collection is mandatory to

obtain or retain a benefit (12 U.S.C. 324)

and is given partial confidential

treatment.

SUMMARY: The proposed revisions to the

Call Report that have been submitted to

the Office of Management and Budget

for approval are mandated by the

Federal Financial Institutions

Examination Council (FFIEC).

On a quarterly basis, state member

banks are required to file detailed

schedules of assets, liabilities, and

capital in the form of a condition report

and summary statement; detailed

schedule of operating income and

expense, sources and disposition of

income, and changes in equity in the

form of an income statement; and a

variety of supporting schedules. Data

are used for supervisory and monetary

policy purposes. The proposed changes

affect several existing Call Report

schedules. Unless otherwise indicated,

the proposed changes would apply to all

four sets of reporting forms (FFIEC 031,

FFIEC 032, FFIEC 033, and FFIEC 034;

the proposed changes are as follows:

DELETIONS AND REDUCTIONS IN DETAIL

The level of detail with which

restructured loans and leases that are in

compliance with modified terms are

reported in the memoranda section of

Schedule RC-C, ‘‘Loans and Lease

Financing Receivables,’’ would be

reduced. For all banks, the current

separate items for the various non-realestate loan categories will be combined

into a single item for ‘‘All other loans

and all lease financing receivables.’’ In

addition, banks with foreign offices or

with $300 million or more in total assets

that file the FFIEC 031 and 032 report

forms also will report a single total for

their restructured commercial loans to

and their restructured leases of non-U.S.

addressees.

CALL REPORT ITEMS IN THE SEVEN

FOLLOWING AREAS WOULD BE DELETED:

(1) Schedule RC-R, item 3, ‘‘Total

qualifying capital allowable under the

risk-based capital guidelines.’’

(2) The quarterly average of

‘‘Obligations (other than securities and

leases) of states and political

subdivisions in the U.S.’’ in Schedule

RC-K, item 6.a(6) on the FFIEC 031, item

6.f on the FFIEC 032, and Memorandum

item 1 on the FFIEC 033. This average

has not been collected from banks with

less than $100 million in assets that file

the FFIEC 034 report form.

(3) The four components of

mandatory convertible debt, net of

dedicated stock, in Schedule RC-M,

items 7.a through 7.d on the FFIEC 031

and 032, items 6.a through 6.d on the

FFIEC 033, and items 8.a through 8.d on

the FFIEC 034. The item for the total

amount of mandatory convertible debt,

net of dedicated stock, would be

retained.

(4) The year-to-date reconcilement of

the allocated transfer risk reserve in

Schedule RI-B, Part II. This

reconcilement has been collected only

from banks with foreign offices or with

total assets of $300 million or more that

file the FFIEC 031 or 032 report forms.

(5) The quarterly reconcilement of the

agricultural loan loss deferral account in

Schedule RC-M, items 10.a through

10.e. This reconcilement has been
Federal Register / Vol. 60, No. 43 / Monday, March 6, 1995 / Notices 12217

collected only from banks with total

assets of less than $100 million that file

the FFIEC 034 report.

(6) Recoveries of ‘‘Special-Category

Loans’’ in Schedule RI-B, Part 1,

Memorandum item 1 on the FFIEC 031

and 032, Memorandum item 3 on the

FFIEC 033, and Memorandum item 2 on

the FFIEC 034. This item has been

collected from national banks only.

(7) The yes-no question on ‘‘Personnel

changes among the three senior officers

of the bank during the quarter’’ in

Schedule RC-M, item 6 on the FFIEC

034. This item has been completed only

by banks with total assets of less than

$100 million that file the FFIEC 034

report form.

NEW ITEMS

Call Report items in the eight

following areas would be added:

(1) Notional Amounts/Par Values

At present, all banks report notional

amount/par value data for interest rate,

foreign exchange rate, and other

commodity and equity contracts in

items 11 through 13 of Schedule RC-L,

‘‘Off-Balance Sheet Items.’’ The existing

items will be expanded to separate

exchange-traded contracts from overthe-counter contracts and to separate

equity derivative contracts from

commodity and other contracts. (Spot

foreign exchange contracts would also

be reported separately.) In addition, for

each of the four types of underlying risk

exposures (i.e., interest rate, foreign

exchange, equity, and commodity, and

other), the total notional amount/par

value of contracts held for trading and

held for purposes other than trading

will be reported separately, with the

latter further divided between contracts

that are marked to market for Call

Report purposes and those that are not.

(2) Gross Fair Values

For banks with foreign offices or with

$100 million or more in total assets that

file the FFIEC 031, 032, or 033 reporting

forms, Schedule RC-L will also be

expanded to include gross fair value

data for derivatives. (This information

will not be collected from small banks

that file the FFIEC 034 report forms.)

For each of the four types of underlying

risk exposures, the gross positive and

gross negative fair values will be

reported separately for

(i) Contracts held for trading

purposes,

(ii) Contracts held for purposes other

than trading that are marked to market,

and

(iii) Contracts held for purposes other

than trading that are not marked to

market. When reporting gross fair

values, no netting of contracts would be

permitted.

(3) Income-Related Information

Additional memorandum items to

Schedule RI, ‘‘Income Statement’’ will

be reported by banks with foreign

offices or with $100 million or more in

total assets that file the FFIEC 031, 032,

or 033 reporting forms. First, banks will

provide a breakdown of trading revenue

that has been included in the body of

the Schedule RI income statement. For

each of the four types of underlying risk

exposures, banks will report the

combined revenue from trading cash

and derivative instruments. Second, for

derivatives held for purposes other than

trading, banks will report the effect that

these contracts had on the bank’s

income as reported in Schedule RI.

There will be separate disclosure of

(i) The net increase (decrease) to

interest income,

(ii) The net increase (decrease) to

interest expense, and

(iii) The effect on noninterest income

and expense of these off-balance-sheet

derivative contracts.

(4) Risk-Based Capital Reporting

Changes

For those banks that complete

Schedule RC-R in its entirety, the

schedule’s memorandum section will be

revised to provide for the collection of

remaining maturity data for long-dated

contracts and for four additional types

of derivative contracts: gold contracts,

other precious metals contracts, other

commodity contracts, and equity

contracts. The two replacement cost

items currently collected for interest

rate and foreign exchange rate contracts

will be deleted and replaced with a

single new item for a bank’s current

credit exposure across all derivative

contracts and counterparties, taking into

account legally enforceable, bilateral

netting agreements that are recognized

for risk-based capital.

(5) Investments in ‘‘High-Risk

Mortgage Securities’’ and Structured

Notes’’

Four memorandum items would be

added to Schedule RC-B, ‘‘Securities,’’

in which banks will separately report

the amortized cost and fair value of any

‘‘high-risk mortgage securities’’ and of

any ‘‘structured notes’’ that are held in

either the held-to-maturity or availablefor-sale portfolios.

(6) Sales of Proprietary Mutual Funds

and Annuities

Currently banks are required to report

separately the dollar amount of sales

during the quarter for money market

funds, equity securities funds, debt

securities funds, other mutual funds,

and annuities in Schedule RC-M,

‘‘Memoranda.’’ The five existing mutual

fund and annuity items combine sales of

proprietary, private label, and third

party products. The banking agencies

would add one item to Schedule RC-M

in which banks will report separately

the total sales during the quarter of

proprietary mutual funds and annuities.

(7) Reporting of Reciprocal Demand

Balances for Insurance Assessment

Purposes

The banking agencies would add

three items to Schedule RC-O, ‘‘Other

Data for Deposit Insurance

Assessments,’’ in order to identify the

amount of the these adjustments to a

bank’s reported demand deposits that

are needed for deposit insurance

assessment purposes:

(i) Amount by which demand

deposits would be reduced if reciprocal

demand balances between the reporting

bank and savings associations were

reported on a net basis rather than a

gross basis in Schedule RC-E,

(ii) Amount by which demand

deposits would be increased if

reciprocal demand balances between the

reporting bank and U.S. branches and

agencies of foreign banks were reported

on a gross basis rather than a net basis

in Schedule RC-E, and

(iii) Amount by which demand

deposits would be reduced if cash items

in process of collection were included

in the calculation of net reciprocal

demand balances between the reporting

bank and U.S. banks and savings

associations in Schedule RC-E.

(8) Disclosure of the Acquisition Date

When Push Down Accounting Has Been

Applied

Push down accounting is the

establishment of a new accounting basis

for a bank in its separate financial

statements (including its Call Report) as

a result of a substantive change in

control. The banking agencies would

add an item to the Memoranda section

of Schedule RI, ‘‘Income Statement,’’ to

reveal the date when any such

transactions have taken place.

INSTRUCTIONAL CHANGES

The Call Report instructions will be

updated in certain places to incorporate

references to FASB Statement No. 114,

‘‘Accounting by Creditors for

Impairment of a Loan.’’ Statement No.

114 defines impairment and sets forth

measurement methods for estimating

the portion of the total allowance for

loan and lease losses attributable to

impaired loans. The banking agencies

also propose instructional changes

relating to the reporting of mortgagebacked securities in the body of

Schedule RC-B, ‘‘Securities,’’ so that

item 4 of Schedule RC-B will include all

mortgage-backed securities. In addition,

the Call Report instructions will be

clarified in response to questions about

the reporting of lines of credit extended

to bank insiders, participations in pools
12218 Federal Register / Vol. 60, No. 43 / Monday, March 6, 1995 / Notices

of residential mortgages, refundable

loan commitment fees, and stock

subscription payments.

The effective date for these proposed

changes, if approved, would be the

March 31, 1995, report date.

Board of Governors of the Federal Reserve

System, February 28, 1995.

William W. Wiles,

Secretary of the Board.

[FR Doc. 95-5359 Filed 3-3-95; 8:45AM]

Billing Code 6210-01-F

Agency Forms Under Review

Background:

Notice is hereby given of the

submission of proposed information

collection to the Office of Management

and Budget (OMB) for its review and

approval under the Paperwork

Reduction Act (Title 44 U.S.C. Chapter

35) and under OMB regulations on

Controlling Paperwork Burdens on the

Public (5 CFR Part 1320). A copy of the

proposed information collection(s) and

supporting documents is available from

the agency clearance officer listed in the

notice. Any comments on the proposal

should be sent to the agency clearance

officer and to the OMB desk officer

listed in the notice.

DATES: Comments are welcome and

should be submitted on or before March

20, 1995.

FOR FURTHER INFORMATION CONTACT:

Federal Reserve Board Clearance

Officer—Mary M. McLaughlin—

Division of Research and Statistics,

Board of Governors of the Federal

Reserve System, Washington, D.C.

20551 (202-452-3829); for the hearing

impaired only, telecommunications

device for the deaf (TTD) (202-452-

3544), Dorothea Thompson, Board of

Governors of the Federal Reserve

System, Washington, D.C. 20551.

OMB Desk Officer—Milo Sunderhauf—

Office of Information and Regulatory

Affairs, Office of Management and

Budget, New Executive Office

Building, Room 3208, Washington,

D.C. 20503 (202-395-7340)

Request for OMB approval to revise

the following report:

1. Report title: Report of Assets and

Liabilities of U.S. Branches and

Agencies of Foreign Banks.

Agency form number: FFIEC 002.

OMB Docket number: 7100-0032.

Frequency: Quarterly.

Reporters: U.S. branches and agencies of

foreign banks.

Annual reporting hours: 49,350.

Estimated average hours per response:

22.15.

Number of respondents: 557.

Small businesses are affected.

General description of report: This

information collection is mandatory to

obtain or retain a benefit (12 U.S.C.

3105(b)(2)), 1817(a)(1) and (3), and

3102(b) and is given confidential

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

SUMMARY: The proposed revisions to the

FFIEC 002 that have been submitted to

the Office of Management and Budget

for approval are mandated by the

Federal Financial Institutions

Examination Council (FFIEC).

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 balance

sheet 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

purposes. The report is collected and

processed by the Federal Reserve on

behalf of all three federal bank

regulatory agencies. The proposed

changes affect several existing

schedules.

The following revisions are proposed

for implementation as of March 31,

1995.

(1) On Schedule RAL, ‘‘Assets and

Liabilities,’’ item 1.c for ‘‘Other bonds,

notes, debentures, and corporate stock

(including U.S. state and local

securities) would be divided into

‘‘Securities of freign governmental

units’’ and ‘‘All other.’’

(2) On Schedule RAL, ‘‘Assets and

Liabilities’’, a new item would be added

for ‘‘Trading Liabilities’’ to disclose

further information on trading activities

(open short positions and revaluation

losses on derivatives).

(3) On Schedule RAL, ‘‘Memoranda,’’

five items would be added in which

branches and agencies would separately

report the amortized cost and fair value

of any ‘‘high-risk mortgage securities’’

and of any ‘‘structured notes’’ that are

held in either the held-to-maturity or

available-for-sale portfolios, and total

sales of mutual funds and annuities.

(4) On Schedule M, ‘‘Due from/Due to

Related Institutions in the U.S. and in

Foreign Countries,’’ a memorandum

item would be added for revaluation

gains and revaluation losses from the

marking-to-market of off-balance-sheet

derivatives contracts with related

parties that are held for trading

purposes.

(5) The banking agencies would add

three items to Schedule O, ‘‘Other Data

for Deposit Insurance Assessments,’’ in

order to identify the amount of the these

adjustments to reported demand

deposits of a branch or agency for

deposit insurance assessment purposes:

(i) Amount by which demand

deposits would be reduced if reciprocal

demand balances between the reporting

branch or agency and savings

associations were reported on a net

basis rather than a gross basis in

Schedule E,

(ii) Amount by which demand

deposits would be increased if

reciprocal demand balances between the

reporting branch or agency and U.S.

banks were reported on a gross basis

rather than a net basis in Schedule E,

and

(iii) Amount by which demand

deposits would be reduced if cash items

in process of collection were included

in the calculation of net reciprocal

demand balances between the reporting

branch or agency and U.S. banks savings

associations in Schedule E.

The following revisions are proposed

for implementation as of June 30, 1995.

(1) Notional Amounts/Par Values

At present, all branches and agencies

report notional amount/par value data

for interest rate, foreign exchange rate,

and other commodity and equity

contracts in items 2,3,4, and 9 of

Schedule L, ‘‘Commitments and

Contingencies,’’ for transactions with

non-related depository institutions, and

in items 2,3,4, and 9 of Schedule M, Part

V, ‘‘Commitments and Contingencies,’’

for transactions with related depository

institutions. The existing items would

be expanded to separate exchangetraded contracts from over-the-counter

contracts and to separate equity

derivative contracts from commodity

and other contracts. (Spot foreign

exchange contracts would also be

reported separately.) In addition, for

each of the four types of underlying risk

exposures (i.e., interest rate, foreign

exchange, equity, and commodity and

other), the total notional amount/par

value of contracts held for trading and

held for purposes other than trading

will be reported separately, with the

latter further divided between contracts

that are marked to market for FFIEC 002

reporting purposes and those that are

not.

(2) Gross Fair Values of Derivative

Contracts

For branches and agencies with $100

million or more in total assets that file

the FFIEC 002 reporting forms,

Schedule L and Schedule M, Part V,

would also be expanded to include

gross fair value data for derivatives. For

each of the four types of underlying risk

exposures, the gross positive and gross

negative fair values will be reported

separately for