[Federal Register Volume 59, Number 61 (Wednesday, March 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7467]
[[Page Unknown]]
[Federal Register: March 30, 1994]
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FEDERAL RESERVE SYSTEM
[Docket No. 7100-0128]
Bank Holding Company Reporting Requirements
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final Board approval of changes to bank holding company
reporting requirements.
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SUMMARY: Notice is hereby given of final approval 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 extension, with revision, of the Consolidated Financial
Statements for Bank Holding Companies (FR Y-9C; OMB No. 7100-0128), the
Parent Company Only Financial Statements for Large Bank Holding
Companies (FR Y-9LP; OMB No. 7100-0128), and the Parent Company Only
Financial Statements for Small Bank Holding Companies (FR Y-9SP; OMB
No. 7100-0128) through December 1996. The Federal Reserve has also
given final approval to the extension, without revision, of the
Supplement to the Consolidated Financial Statements for Bank Holding
Companies (FR Y-9CS; OMB No. 7100-0128). The reporting changes,
summarized below, will be implemented for the March 31, 1994 reporting
date.\1\
\1\The reporting change to the FR Y-9SP is effective with the
June 1994 reporting date.
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PUBLIC COMMENTS: On December 10, 1993, the Federal Reserve granted
initial approval of this proposal. Notice of the proposed action was
initially published in the Federal Register on December 17, 1993.
Notice of an extension of the initial comment period, which ended
January 3, 1994, and a request for public comment on additional changes
to the reporting requirements necessitated by the proposed Call Report
revisions was published in the Federal Register on February 10, 1994.
The comment period expired on March 9, 1994. The Federal Reserve
received three comment letters regarding the proposed changes to the
bank holding company reports. All of the comment letters related to
issues that have been addressed in the instructions to the reporting
forms. In addition, one issue raised in one of the comment letters was
retracted after certain clarifications were provided to the party who
issued the comment.
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, DC 20551 (202-
452-3829); OMB Desk Officer--Gary Waxman, Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, room 3208, Washington, DC 20503 (202-395-7340).
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 Y 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 analyses, 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 Board has given final approval, effective with the March 31,
1994 reporting date, of the revisions described in the ``Report Form
Revisions'' section below on the FR Y-9C, FR Y-9LP, and FR Y-9SP. These
include the appropriate reporting changes to the FR Y-9 reports that
are necessitated by revisions to the March 1994 Consolidated Reports of
Condition and Income (Call Report).
In addition, the Board has given final approval to revise the
reporting panel to reduce the reporting burden on small bank holding
companies. The revision to the reporting panel is discussed in the
``Reporting Panel Revision'' section below.
Description of Affected Reports
1. 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: 147,511.
Estimated Average Hours Per Response: Range from 5 to 1,250 hours.
Number of Respondents: 1,418.
Small businesses are affected.
The information collection is mandatory (12 U.S.C. 1844(b) and (c))
and part of the information is given confidential treatment.
Confidential treatment is not routinely given to the data in these
reports. However, confidential treatment for the remaining information,
in whole or in part, can be requested in accordance with the
instructions to the form.
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 any bank holding company with more than one
subsidiary bank. In addition, the FR Y-9C must be filed by lower-tier
bank holding companies that have total consolidated assets of $1
billion or more.
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 211.21 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.
2. Report Title: Parent Company Only Financial Statements for Large
Bank Holding Companies.
Agency Form Number: FR Y-9LP.
OMB Docket Number: 7100-0128.
Frequency: Quarterly.
Reporters: Bank Holding Companies.
Annual Reporting Hours: 28,722.
Estimated Average Hours Per Response: Range from 2.0 to 13.5 hours.
Number of Respondents: 1,751.
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 information
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-9LP financial statements are to be filed on a parent
company only basis by any bank holding company filing an FR Y-9C, or by
the parent company of any bank holding company that is a majority-owned
subsidiary of a FR Y-9C respondent. The following bank holding
companies are exempt from filing the FR Y-9LP, unless the Board
specifically requires an exempt company to file the report: 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 211.21 of Regulation K.
3. Report Title: Parent Company Only Financial Statements for Small
Bank Holding Companies.
Agency Form Number: FR Y-9SP.
OMB Docket Number: 7100-0128.
Frequency: Semiannual.
Reporters: Bank Holding Companies.
Annual Reporting Hours: 33,600.
Estimated Average Hours Per Response: Range from 1.5 to 6.0 hours.
Number of Respondents: 4,480.
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 report
information, in whole or in part, can be requested in accordance with
the instructions to the form.
The FR Y-9SP is a parent company only financial statement filed by
one bank holding company with total consolidated assets of less than
$150 million. This report, an abbreviated version of the more extensive
FR Y-9LP, is designed to obtain basic balance sheet and income
information for the parent company, information on intangible assets,
information on intercompany transactions, and data for capital adequacy
evaluation.
Report Form Revisions
FR Y-9C
The Federal Reserve has approved the following revisions to the FR
Y-9C:
Schedule HC, Consolidated Balance Sheet
(1) Revise item 2, ``Securities,'' by splitting it into two
separate items: ``Available-for-sale securities'' and ``Held-to-
maturity securities'' in accordance with FASB Statement No. 115.
(2) Add an item, ``Trading liabilities.''
(3) Add an item, ``Net unrealized holding gains (losses) on
available-for-sale securities.''
Schedule HC-A, Securities
(1) Revise schedule into a four-column format to collect the
amortized cost and fair value of available-for-sale and held-to-
maturity securities.
(2) Delete memoranda item 2, ``Market value of securities.''
(3) Delete memoranda item 5, ``Debt securities held for sale.''
(4) Add an item, ``Amortized cost of held-to-maturity securities
sold or transferred to available-for-sale or trading securities during
the calendar year-to-date.''
(5) Add memoranda items for bank holding companies with total
consolidated assets of $1 billion or more to collect additional detail
on certain debt securities, mortgage-backed securities and equity
securities.
Schedule HC-G, Memoranda
(1) Add an item to collect the amount of ``Deferred tax assets in
excess of proposed regulatory capital limits.''
(2) Add items, ``Revaluation gains (losses) on interest rate,
foreign exchange rate, and other commodity and equity contracts.''
These items would only be reported 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.
(3) Add an item, ``Liability for short positions.'' This item would
only be reported 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.
Schedule HC-H, Past Due and Nonaccrual Loans
(1) Add an item to collect past due information on interest rate,
foreign exchange rate, and commodity and other equity contracts. This
item would only be reported 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.
Notes to the Balance Sheet
(1) Require bank holding companies to disclose in a footnote the
amount of net unrealized losses on marketable equity securities (net of
tax effect). Under FASB Statement No. 115, the amount of net unrealized
losses on marketable equity securities is included in the new equity
item,''net unrealized holding gains (losses) on available-for-sale
securities.'' Separate disclosure of the net unrealized losses on
marketable equity securities is necessary to calculate risk-based
capital until final guidelines are determined regarding FASB Statement
No. 115.
Schedule HI, Income Statement
(1) Revise item 6, ``Gains (losses) on securities not held in
trading accounts,'' by splitting it into two separate items: ``Realized
gains (losses) on held-to-maturity securities'' and the ``Realized
gains (losses) on available-for-sale securities.''
(2) Add a free-form memorandum item, which would require bank
holding companies to disclose the three largest service fees and
commissions (other than service charges on deposit accounts) that
exceed 10 percent of ``Other service charges, commissions, and fees,''
Schedule HI, line item 5.b(2).
(3) Revise Memorandum item 5, ``Nonrecurring transactions,'' to:
(a) Replace the reporting of gains and losses on the sales of assets
(other than real estate owned) with gains and losses on the sales of
loans; (b) eliminate the requirement of reporting ``other nonrecurring
transactions'' that are 25% or more of noninterest income or
noninterest expense (and the applicable income tax effect); (c) report
gains and losses on other real estate owned; and (d) report the three
largest noninterest income items and the three largest noninterest
expense items that exceed 10% of line item 5.e, ``Other noninterest
income'' and line item 7.c, ``Other noninterest expense,''
respectively.
Schedule HI-A, Changes in Equity
(1) Add an item, ``Change in net unrealized holding gains (losses)
on available-for-sale securities.''
FR Y-9LP
The Federal Reserve has approved the following revisions to the FR
Y-9LP:
Schedule PC, Parent Company Only Balance Sheet
(1) Revise instructions regarding securities for the adoption of
FASB Statement No. 115.
(2) Add an item to equity capital, ``Net unrealized holding gains
(losses) on available-for-sale securities.''
Schedule PC-B, Memoranda
(1) Revise item 11, ``Market value of securities included in
Schedule PC, item 2,'' by splitting it into two separate items: ``Fair
value of available-for-sale securities'' and ``Amortized cost of held-
to-maturity securities'' in accordance with FASB Statement No. 115.
(2) Add an item to collect ``Bank holding company (parent company
only) borrowings not held by commercial bank(s) or by insiders
(including directors) and their interests.''
Schedule PI-A, Cash Flow Statement
(1) Add an item to part III, Cash Flows From Financing Activities,
``Payment to repurchase common stock.''
FR Y-9SP
The Federal Reserve has approved the following revisions to the FR
Y-9SP:
Balance Sheet
(1) Revise instructions regarding securities for the adoption of
FASB Statement No. 115.
(2) Add the following breakout of ``Equity capital'':
(a) ``Common stock (including related surplus)''
(b) ``Preferred stock (including related surplus)''
(c) ``Retained earnings (net of Treasury stock)''
(3) Add an item to equity capital, ``Net unrealized holding gains
(losses) on available-for-sale securities.''
(4) Add a memoranda item, ``Total consolidated assets of the bank
holding company.'' (This item would only be completed by multibank
holding companies, with total consolidated assets of less than $150
million, without any debt outstanding to the general public and not
engaged in a nonbank activity either directly or indirectly involving
financial leverage and not engaged in credit extending activities).
(5) Revise memoranda item 6, ``Market value of securities,'' by
splitting it into two items: ``Fair value of available-for-sale
securities'' and ``Amortized cost of held-to-maturity securities'' in
accordance with FASB Statement No. 115.
(6) Add memoranda items, ``Other assets'' and ``Other liabilities''
that exceed 25 percent of balance sheet item 7, ``Other assets,'' and
item 13, ``Other liabilities'' respectively.
Income Statement
(1) Delete the memorandum item, ``tax payments received by the bank
holding company from the bank subsidiary that was retained by the bank
holding company in excess of the amount paid to the IRS.''
Notes to the Financial Statements
(1) Add a ``Notes to the Financial Statement'' section similar to
that on the FR Y-9C and FR Y-9LP.
Proposed Reporting Panel Revision
The Federal Reserve has given final approval to revise the
reporting panels on the FR Y-9C, FR Y-9LP, and FR Y-9SP to reduce
reporting burden for small bank holding companies. Multibank holding
companies with less than $150 million in total consolidated assets,
without any debt outstanding to the general public2 and not
engaged in a nonbank activity (either directly or indirectly) involving
financial leverage3 and not engaged in credit extending activities
would no longer be required to file the quarterly FR Y-9C and FR Y-9LP,
but would file the FR Y-9SP semiannually.
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\2\Debt outstanding to the general public is defined as debt
held by parties other than financial institutions, officers,
directors, and controlling shareholders of the banking organization
or their related interests.
\3\Financial leverage is the use of debt to supplement the
equity in a company's capital structure.
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Legal Status
The Legal Division has determined that (12 U.S.C. 1844 (b) and (c))
authorizes the Board to require this report.
Overall, the Board does not consider the data in these reports to
be confidential. However, a bank holding company may request
confidential treatment pursuant to section (b)(4) and (b)(6) of the
Freedom of Information Act (5 U.S.C. 552 (b)(4) and (b)(6)).
Confidentiality is also granted pursuant to section (b)(8) of the
Freedom of Information Act (5 U.S.C. 552(b)(8)). Section (b)(4)
provides exemption for ``trade secrets and commercial or financial
information obtained from a person and privileged or confidential.''
Section (b)(6) provides exemption for ``personnel and medical files and
similar files the disclosure of which would constitute a clearly
unwarranted invasion of personal privacy.'' Section (b)(8) exempts
matters that are ``contained in or related to examination, operating,
or condition reports prepared by, on behalf of, or for the use of an
agency responsible for the regulation or supervision of financial
institutions.''
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)).
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.
Board of Governors of the Federal Reserve System, March 24, 1994.
Jennifer J. Johnson,
Associate Secretary of the Board.
[FR Doc. 94-7467 Filed 3-29-94; 8:45 am]
BILLING CODE 6210-01-P
