[Federal Register Volume 63, Number 133 (Monday, July 13, 1998)]
[Rules and Regulations]
[Page 37665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18276]
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FEDERAL RESERVE SYSTEM
12 CFR Part 216
[Regulation P; Docket No. R-0965]
Security Procedures
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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SUMMARY: The Board is rescinding Regulation P, which is no longer
necessary since its provisions have been incorporated into Regulation H
(Membership of State Banking Institutions in the Federal Reserve
System), as issued by the Board elsewhere in today's Federal Register.
Regulation P requires each bank to adopt appropriate security
procedures.
EFFECTIVE DATE: October 1, 1998.
FOR FURTHER INFORMATION CONTACT: Jean Anderson, Staff Attorney, Legal
Division (202/452-3707). For the hearing impaired only,
Telecommunications Device for the Deaf (TDD), Diane Jenkins (202/452-
3544).
SUPPLEMENTARY INFORMATION: Section 303(a) of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4803(a))
requires the Board, as well as the other federal banking agencies, to
review its regulations and written policies in order to streamline and
modify these regulations and policies to improve efficiency, reduce
unnecessary costs, and eliminate unwarranted constraints on credit
availability. The Board reviewed its Regulation P with this purpose in
mind and has adopted its proposal to rescind Regulation P in order to
meet the goals of section 303(a).
Regulation P implements the requirements of the Bank Protection Act
of 1968 (BPA). The BPA requires the federal financial institution
supervisory agencies to establish minimum standards for bank security
devices and procedures to discourage bank crime and to assist in the
identification of persons who commit such crimes. 12 U.S.C. 1882. To
implement this statute a uniform regulation (Regulation P) was adopted
in 1969 by each of the supervisory agencies--Comptroller of the
Currency, Federal Deposit Insurance Corporation, Federal Home Loan Bank
Board (now known as the Office of Thrift Supervision), and the Board.
As originally proposed, Regulation P included a list of security
devices that banks were required to adopt. On March 1, 1991, (55 FR
13069) (1991 Amendments), the supervisory agencies amended their rules
to incorporate amendments made to the BPA by the Financial Institutions
Reform Recovery and Enforcement Act of 1989 (FIRREA) and to address the
fact that many of the required security devices had been rendered
obsolete by virtue of technological advances.
Discussion
The Board's action to rescind Regulation P and incorporate its
provisions into Regulation H (12 CFR part 208--Membership of State
Banking Institutions in the Federal Reserve System) as published
elsewhere in today's Federal Register, would not substantively change
the requirements of Regulation P. The Board's action to incorporate
Regulation P into Regulation H is designed to simplify compliance for
State member banks by consolidating regulatory requirements applying to
State member banks into one regulation.
The Board published its proposal to rescind Regulation P for
comment in the Federal Register on March 31, 1997 (61 FR 15299). The
Board received 4 comments on the proposal from the following types of
institutions:
Trade associations--2
Federal Reserve Banks--2
Three of the 4 comments received generally supported, or did not
object to, rescinding Regulation P. However, one commenter opposed
incorporating Regulation P into Regulation H on the basis that
Regulation H relates solely to state member banks and Regulation P
addresses security procedures for both state member banks and Federal
Reserve Banks. Despite this concern the Board is rescinding Regulation
P and incorporating it into Regulation H as proposed because it
believes that the Federal Reserve Banks are well aware of the
requirements of Regulation P.
Regulatory Flexibility Act Analysis
Pursuant to section 605(b) of the Regulatory Flexibility Act (Pub.
L. 95-354, 5 U.S.C. 601 et seq.), the Board of Governors of the Federal
Reserve System certifies that adoption of this proposal will not have a
significant economic impact on a substantial number of small entities
that would be subject to the regulation.
This amendment will remove a regulation and an interpretation that
the Board believes are no longer necessary. The amendment does not
impose more burdensome requirements on bank holding companies than are
currently applicable.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3506; 5 CFR 1320 Appendix A.1), the Board reviewed the rule under the
authority delegated to the Board by the Office of Management and
Budget. No collections of information pursuant to the Paperwork
Reduction Act are contained in the final rule.
List of Subjects in 12 CFR Part 216
Federal Reserve System, Reporting and recordkeeping requirements,
Security measures.
For the reasons set forth in the preamble and under the authority
of 12 U.S.C. 1882, the Board is amending 12 CFR chapter II, as set
forth below:
PART 216--[REMOVED]
1. Part 216 is removed.
By order of the Board of Governors of the Federal Reserve
System, July 6, 1998.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 98-18276 Filed 7-10-98; 8:45 am]
BILLING CODE 6210-01-P
