94-31713. Bank Holding Company Reporting Requirements  

  • [Federal Register Volume 59, Number 247 (Tuesday, December 27, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-31713]
    
    
    [[Page Unknown]]
    
    [Federal Register: December 27, 1994]
    
    
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    FEDERAL RESERVE SYSTEM
     
    
    Bank Holding Company Reporting Requirements
    
    AGENCY: Board of Governors of the Federal Reserve System.
    
    ACTION: Notice and a request for public comments.
    
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    SUMMARY: Notice is hereby given of initial approval, and public comment 
    is requested, by the Board of Governors of the Federal Reserve System 
    (the Board) under delegated authority from the Office of Management and 
    Budget (OMB), as per 5 CFR 1320.9 (OMB Regulations on Controlling 
    Paperwork Burdens on the Public), to the revision of the Consolidated 
    Financial Statements for Bank Holding Companies (FR Y-9C; OMB No. 7100-
    0128); the extension, with revision, of the Annual Report of Bank 
    Holding Companies (FR Y-6; OMB No. 7100-0124), the Combined Financial 
    Statements of Nonbank Subsidiaries of Bank Holding Companies (FR Y-11Q; 
    OMB No. 7100-0244) and the Annual Report of Selected Financial Data for 
    Nonbank Subsidiaries of Bank Holding Companies (FR Y-11I; OMB No. 7100-
    0218); and the elimination of the Combined Financial Statements of 
    Nonbank Subsidiaries of Bank Holding Companies, by Type of Nonbank 
    Subsidiary (FR Y-11AS; OMB No. 7100-0244). Following review of public 
    comments, the Board will take final action. The proposed reporting 
    changes, summarized in this notice, will be effective for the FR Y-9C, 
    FR Y-11Q, and FR Y-11AS with the March 31, 1995 reporting date and 
    effective for the FR Y-11I for the December 31, 1995 reporting date. 
    The Federal Reserve anticipates making the proposed reporting changes 
    to the FR Y-6 effective December 1994 unless significant objections 
    from the public are received during the comment period.
    
    DATES: Comments must be submitted on or before January 26, 1995.
    
    ADDRESSES: Comments, which should refer to the OMB Docket number (or 
    Agency form number in the case of a new information collection that has 
    not yet been assigned an OMB number) should be addressed to Mr. William 
    W. Wiles, Secretary, Board of Governors of the Federal Reserve System, 
    20th and C Streets, N.W., Washington, DC 20551, or delivered to the 
    Board's mail room between 8:45 a.m. and 5:15 p.m., and to the security 
    control room outside of those hours. Both the mail room and the 
    security control room are accessible from the courtyard entrance on 
    20th Street between Constitution Avenue and C Street, N.W. Comments 
    received may be inspected in room B-1122 between 9:00 a.m. and 5:00 
    p.m., except as provided in Section 261.8(a) of the Board's Rules 
    Regarding Availability of Information, 12 CFR 261.8(a).
        A copy of the comments may also be submitted to the OMB desk 
    officer for the Board: Milo Sunderhauf, Office of Information and 
    Regulatory Affairs, Office of Management and Budget, New Executive 
    Office Building, Room 3208, Washington, DC 20503.
    
    FOR FURTHER INFORMATION CONTACT: Robert T. Maahs, Supervisory Financial 
    Analyst (202/872-4935) or Tina Robertson, Senior Financial Analyst 
    (202/452-2949). A copy of the proposed form, the request for clearance 
    (OMB 83I), supporting statement, instructions, and other documents that 
    will be placed into OMB's public docket files once approved may be 
    requested from the agency clearance officer, Mary M. McLaughlin, 
    Federal Reserve Board Clearance Officer, (202/452-3829), Division of 
    Research and Statistics, Board of Governors of the Federal Reserve 
    System, Washington, D.C. 20551. For the hearing impaired only, 
    Telecommunications Device for the Deaf (TTD) Dorothea Thompson, (202/
    452-3544), Board of Governors of the Federal Reserve System, 
    Washington, D.C. 20551.
    
    SUPPLEMENTARY INFORMATION:
    
    General Information
    
        Under the Bank Holding Company Act of 1956, as amended, the Board 
    is responsible for the supervision and regulation of all bank holding 
    companies. The FR Y-9 and FR Y-11 series of reports historically have 
    been, and continue to be, the primary source of financial information 
    on bank holding companies and their nonbanking activities between on-
    site inspections. Financial information, as well as ratios developed 
    from the Y series reports, are used to detect emerging financial 
    problems, to review performance for pre-inspection analysis, to 
    evaluate bank holding company mergers and acquisitions, and to analyze 
    a holding company's overall financial condition and performance as part 
    of the Federal Reserve System's overall analytical effort. 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.
    
    Proposal to approve under OMB delegated authority the revision of:
    Report Title: Consolidated Financial Statements for Bank Holding 
    Companies
    Agency Form Number: FR Y-9C
    OMB Docket Number: 7100-0128
    Frequency: Quarterly
    Reporters: Bank Holding Companies
    Annual Reporting Hours: 172,720
    Estimated Average Hours per Response: Range from 5 to 1,250 hours
    Number of Respondents: 1,346
    Small businesses are affected.
    
        The information collection is mandatory [12 U.S.C. 1844(b) and 
    (c)]. Confidential treatment is not routinely given to the data in 
    these reports. However, confidential treatment for the reporting 
    information, in whole or in part, can be requested in accordance with 
    the instructions to the form.
        The Legal Division has also determined that on the FR Y-9C, 
    Schedule HC-H, Column A, requiring information on ``assets past due 30 
    through 89 days and still accruing'' and memoranda item 2 are 
    confidential pursuant to Section (b)(8) of the Freedom of Information 
    Act [5 U.S.C. 552(b)(8)].
        The FR Y-9C consolidated financial statements are currently filed 
    by top-tier bank holding companies with total consolidated assets of 
    $150 million or more and by lower-tier bank holding companies that have 
    total consolidated assets of $1 billion or more. In addition, all 
    multibank bank holding companies with debt outstanding to the general 
    public or engaged in certain nonbank activities, regardless of size, 
    must file the FR Y-9C. The following bank holding companies are exempt 
    from filing the FR Y-9C, unless the Board specifically requires an 
    exempt company to file the report: bank holding companies that are 
    subsidiaries of another bank holding company and have total 
    consolidated assets of less than $1 billion; bank holding companies 
    that have been granted a hardship exemption by the Board under section 
    4(d) of the Bank Holding Company Act; and foreign banking organizations 
    as defined by section 211.23(b) of Regulation K.
        The report includes a balance sheet, income statement, and 
    statement of changes in equity capital with supporting schedules 
    providing information on securities, loans, risk-based capital, 
    deposits, interest sensitivity, average balances, off-balance sheet 
    activities, past due loans, and loan charge-offs and recoveries.
        The Federal Reserve proposes the following revisions to the FR Y-
    9C. Most of the proposed new items are needed to maintain consistency 
    with comparable items recently proposed or previously added to the 
    commercial bank Reports of Condition and Income (Call Report).
        A. Revisions related to consistent reporting with the Call Report:
    Schedule HC-A, Securities
        (1) Report separately as memoranda items the amortized cost and 
    fair value of any high-risk mortgage securities and any structured 
    notes.
        (2) Modify the reporting instructions for the category labeled 
    ``mortgage-backed securities'' to capture more securities of this 
    nature. In addition, the caption for the existing item of 
    collateralized mortgage obligations (CMOs) and real estate mortgage 
    investment conduits (REMICs) issued by the Federal National Mortgage 
    Association (FNMA) and the Federal Home Loan Mortgage Corporation 
    (FHLMC) would be modified to explicitly refer to the REMICs that the 
    Government National Mortgage Association (GNMA) has recently begun to 
    issue.
    Schedule HC-F, Off-Balance Sheet Items
        Revise Part 2 to collect more comprehensive information on 
    derivative instruments, including further breakdowns of notional 
    contract amounts by instrument type, by risk exposure underlying the 
    contract, and by whether the contract is traded on the exchange or over 
    the counter and total notional amount and gross positive and gross 
    negative fair values of contracts held for trading purposes and for 
    purposes other than trading.
    Schedule HI, Income Statement
        Add memoranda items to collect trading revenue that reflects the 
    combined revenues from cash and derivative instruments, with a 
    breakdown by underlying risk exposure, and information on the effect on 
    earnings of derivatives held for purposes other than trading.
    Schedules HC-I and HC-J, Risk-Based Capital
        (1) Add an item to collect the net credit exposure of all 
    derivative contracts taking into consideration netting arrangements 
    permissible under the risk-based capital standards.
        (2) Expand the risk-based capital ``notional principal value, 
    maturity and replacement cost matrix'' for derivatives to include an 
    additional remaining maturity time band and four additional categories 
    of derivative contracts (gold, other precious metals, other commodity 
    and equity contracts).
    Schedule HI-B, Charge-offs and Recoveries and Changes in Allowance for 
    Loan and Lease Losses
        Delete Memoranda, Part 2, Column B, the reconciliation of the 
    allocated transfer risk reserve.
    Schedule of Trading Account Assets and Liabilities
        Add a schedule for the reporting of trading account assets and 
    liabilities in a manner consistent with the schedule currently included 
    in the Call Report. This schedule would be completed only by bank 
    holding companies with total consolidated assets of $1 billion or more, 
    or with $2 billion or more in par/notional amounts of interest rate, 
    foreign exchange rate and other commodity and equity contracts.
    Mutual Funds and Annuities Information
        Add line items to collect quarterly gross sales of mutual funds (by 
    type of fund) and annuities, including sales of proprietary mutual 
    funds and annuities, and the fee income generated from the sale and 
    servicing of mutual funds and annuities in domestic offices.
    Gross Redemptions of Mutual Funds and Annuities
        Add a line item to collect the total amount of gross redemptions of 
    mutual funds and annuities during the quarter.
        B. Minor clarifications to the existing report forms and 
    instructions:
        Revise the wording of Schedule HC-J, Part 3, line item 3 to conform 
    with the intent of the existing instructions. The current wording of 
    this line item ``unsecured commitments,'' will be revised to read as 
    ``unutilized commitments.'' In addition, minor instructional 
    clarifications will be implemented based on comments received from the 
    industry and Reserve Banks.
    
    Proposal to approve under OMB delegated authority the extension, with 
    revision, of the following reports:
    1. Report Title: Annual Report of Bank Holding Companies
    Agency Form Number: FR Y-6
    OMB Docket Number: 7100-0124
    Frequency: Annual
    Reporters: Bank Holding Companies
    Annual Reporting Hours: 21,972
    Estimated Average Hours per Response: Range from 1.3 to 101 hours per 
    response
    Number of Respondents: 5,493
    Small businesses are affected.
    
        The information collection is mandatory [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.
        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. Additionally, financial 
    statements for the nonbank subsidiaries of the holding company and 
    information on the identity, percentage ownership, and business 
    interests of principal shareholders, directors, and executive officers 
    are included in the report. Amendments to the organizational documents, 
    information on insider loans, and an organization chart are also 
    currently required.
        The Federal Reserve proposes 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. Incorporate this information into an expanded 
    standardized FR Y-11 report as discussed below.
        (4) Eliminate the requirement to submit certified copies of 
    amendments to organizational documents.
        (5) Eliminate the collection of information on insiders loans.
        (6) Eliminate the confirmation of changes in investments and 
    activities.
    
    2. Report Title: Combined Financial Statements of Nonbank Subsidiaries 
    of Bank Holding Companies
    Agency Form Number: FR Y-11Q
    OMB Docket Number: 7100-0244
    Frequency: Quarterly
    Reporters: Bank Holding Companies
    Annual Reporting Hours: 6,696
    Estimated Average Hours per Response: Range from 3.0 to 8.0 hours
    Number of Respondents: 270
    Small businesses are affected.
    
        The information collection is mandatory [12 U.S.C. 1844(b) and (c)] 
    and 12 CFR 225.5(b). Confidential treatment is not routinely given to 
    the data in these reports. However, confidential treatment for the 
    report information, in whole or in part, can be requested in accordance 
    with the instructions to the form.
        The FR Y-11Q is filed by all bank holding companies with total 
    consolidated assets of $1 billion or more, regardless of whether or not 
    the bank holding companies own any nonbank subsidiaries and by all bank 
    holding companies with total assets of $150 million or more but less 
    than $1 billion that meet one or more of the following conditions: (a) 
    the assets of the holding company's nonbank subsidiaries constitute 5 
    percent or more of the holding company's total consolidated assets; or 
    (b) the net income of the holding company's nonbank subsidiaries make 
    up 5 percent or more of the holding company's total consolidated net 
    income; or (c) the holding company's investment in and/or loans and 
    advances to nonbank subsidiaries exceed 5 percent of the holding 
    company's total consolidated equity capital.
        The report collects basic financial information on nonbank 
    subsidiaries and consists of a balance sheet, income statement, and a 
    memoranda section.
        The Federal Reserve proposes the following revisions to the FR Y-
    11Q:
        (1) Expand the report to collect more detailed financial 
    information, comparable to items collected on the FR Y-9C. The proposed 
    comprehensive financial statements include a balance sheet, off-balance 
    sheet items, a memoranda section, an income statement, and a statement 
    of changes in equity capital.
        (2) Revise the reporting criteria for bank holding companies with 
    assets of $150 or more to collect information on an individual basis 
    from each nonbank subsidiary viewed as having a significant effect on 
    the condition of the bank holding company. All bank holding companies 
    with total consolidated assets of $150 million or more would file a 
    report for each individual nonbank subsidiary with total assets equal 
    to 5 percent or more of the bank holding company's consolidated Tier 1 
    capital, or where the subsidiary's total operating revenue equals 5 
    percent or more of the bank holding company's consolidated total 
    operating revenue.
    
    3. Report Title: Annual Report of Selected Financial Data for Nonbank 
    Subsidiaries of Bank Holding Companies
    Agency Form Number: FR Y-11I
    OMB Docket Number: 7100-0218
    Frequency: Annual
    Reporters: Bank Holding Companies
    Annual Reporting Hours: 13,216
    Estimated Average Hours per Response: Range from .4 to 8.0 hours
    Number of Respondents: 4130
    Small businesses are affected.
    
        The information collection is mandatory [12 U.S.C. 1844(b) and (c)] 
    and 12 CFR 225.5(b). Confidential treatment is not routinely given to 
    the data in these reports. However, confidential treatment for the 
    report information, in whole or in part, can be requested in accordance 
    with the instructions to the form.
        The FR Y-11I report is filed by a top-tier bank holding company for 
    each of its nonbank subsidiaries, whether directly or indirectly owned. 
    Combined and consolidated reporting is permitted in some instances. 
    Foreign banking organizations are not required to file the report.
        The report consists of ten summary financial items and two items 
    providing consolidation information.
        The Federal Reserve proposes the following revisions to the FR Y-
    11I:
        (1) Expand the report to collect more detailed financial 
    information, comparable to items proposed for the FR Y-11Q but with 
    certain detail reported only as summary items. The proposed financial 
    statements will include a balance sheet, income statement, off-balance 
    sheet, and a statement on changes in equity capital. The FR Y-11I will 
    also include a loan schedule to be submitted only by respondents 
    engaged in credit extending activities.
        (2) Revise the reporting criteria to collect information on an 
    individual basis annually from each nonbank subsidiary not required to 
    file the proposed FR Y-11Q.
    
    Proposal to approve under OMB delegated authority the elimination of:
    Report Title: Combined Financial Statements of Nonbank Subsidiaries of 
    Bank Holding Companies, by Type of Nonbank Subsidiary
    Agency Form Number: FR Y-11AS
    OMB Docket Number: 7100-0244
    Frequency: Annual
    Reporters: Bank Holding Companies
    Annual Reporting Hours: 1,680
    Estimated Average Hours per Response: Range from 1.0 to 17.0 hours
    Number of Respondents: 271
    Small businesses are affected.
    
        The information collection is mandatory [12 U.S.C. 1844(b) and (c)] 
    and 12 CFR 225.5(b). Confidential treatment is not routinely given to 
    the data in these reports. However, confidential treatment for the 
    report information, in whole or in part, can be requested in accordance 
    with the instructions to the form.
        The FR Y-11AS is filed by all bank holding companies with total 
    consolidated assets of $1 billion or more, regardless of whether or not 
    the bank holding companies own any nonbank subsidiaries and by all bank 
    holding companies with total assets of $150 million or more but less 
    than $1 billion that meet one or more of the following conditions: (a) 
    The assets of the holding company's nonbank subsidiaries constitute 5 
    percent or more of the holding company's total consolidated assets; or 
    (b) the net income of the holding company's nonbank subsidiaries make 
    up 5 percent or more of the holding company's total consolidated net 
    income; or (c) the holding company's investment in and/or loans and 
    advances to nonbank subsidiaries exceed 5 percent of the holding 
    company's total consolidated equity capital.
        The report collects the same report items as the FR Y-11Q by type 
    of nonbank activity and consists of a balance sheet, income statement, 
    and a memoranda section. The Federal Reserve proposes to eliminate this 
    report.
    
    Regulatory Flexibility Act Analysis
    
        The Board certifies that the above bank holding company reporting 
    requirements are not expected to have a significant economic impact on 
    small entities within the meaning of the Regulatory Flexibility Act (5 
    U.S.C. 601 et seq.). The reporting requirements for the small companies 
    require significantly fewer items of data to be submitted than the 
    amount of information required of large bank holding companies.
        The information that is collected on the reports is essential for 
    the detection of emerging financial problems, the assessment of a 
    holding company's financial condition and capital adequacy, the 
    performance of pre-inspection reviews, and the evaluation of expansion 
    activities through mergers and acquisitions. The imposition of the 
    reporting requirements is essential for the Board's supervision of bank 
    holding companies under the Bank Holding Company Act.
    
        By order of the Board of Governors of the Federal Reserve 
    System, December 20, 1994.
    William W. Wiles,
    Secretary of the Board.
    [FR Doc. 94-31713 Filed 12-23-94; 8:45 am]
    BILLING CODE 6210-01-P
    
    
    

Document Information

Published:
12/27/1994
Department:
Federal Reserve System
Entry Type:
Uncategorized Document
Action:
Notice and a request for public comments.
Document Number:
94-31713
Dates:
Comments must be submitted on or before January 26, 1995.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: December 27, 1994