[Federal Register Volume 64, Number 160 (Thursday, August 19, 1999)]
[Notices]
[Pages 45259-45260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21481]
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FEDERAL RESERVE SYSTEM
Agency information collection activities: Announcement of Board
approval under delegated authority and submission to OMB
AGENCY: Board of Governors of the Federal Reserve System
SUMMARY:
Background. Notice is hereby given of the final approval of
proposed information collection by the Board of Governors of the
Federal Reserve System (Board) under OMB delegated authority, as per 5
CFR 1320.16 (OMB Regulations on Controlling Paperwork Burdens on the
Public). Board-approved collections of information are incorporated
into the official OMB inventory of currently approved collections of
information. Copies of the OMB 83-Is and supporting statements and
approved collection of information instrument(s) are placed into OMB's
public docket files. The Federal Reserve may not conduct or sponsor,
and the respondent is not required to respond to, an information
collection that has been extended, revised, or implemented on or after
October 1, 1995, unless it displays a currently valid OMB control
number.
FOR FURTHER INFORMATION CONTACT:
Chief, Financial Reports Section--Mary M. West--Division of Research
and Statistics, Board of Governors of the Federal Reserve System,
Washington, DC 20551 (202-452-3829); OMB Desk Officer--Alexander T.
Hunt--Office of Information and Regulatory Affairs, Office of
Management and Budget, New Executive Office Building, Room 3208,
Washington, DC 20503 (202-395-7860).
Final approval under OMB delegated authority of the extension for
three years, without revision of the following report:
1. Report title: Recordkeeping, Reporting, and Disclosure
Requirements in Connection with Regulation BB (Community Reinvestment).
Agency form number: unnum Reg BB.
OMB Control number: 7100-0197.
Frequency: Annual.
Reporters: State Member Banks.
Annual reporting hours: 151,680 hours.
Estimated average hours per response: Small business and small farm
loan register: 219 hours; Consumer loan data: 326 hours; Other loan
data: 25 hours; Assessment area delineation: 2 hours; Small business
and small farm loan data: 8 hours; Community development loan data: 13
hours; HMDA out of MSA loan data: 253 hours; Data on lending by a
consortium or third party: 17 hours; Affiliate lending data: 38 hours;
Strategic plan: 275 hours; Request for designation as a wholesale or
limited purpose bank: 4 hours; and Public file: 10 hours.
Number of respondents: Public file: 989; Small business and small
farm loan register, Assessment area delineation, Small business and
small farm loan data, Community development loan data, and HMDA out of
MSA loan data: 227; Consumer loan data: 77; Other loan data: 50; Data
on lending by a consortium or third party: 11; Affiliate lending data:
32; Strategic plan: 6; and Request for designation as a wholesale or
limited purpose bank: 5.
Small businesses are affected.
General description of report: The recordkeeping, reporting, and
disclosure requirements associated with Regulation BB are authorized by
the Federal Reserve Act (12 U.S.C. Sec. 248) and the Community
Reinvestment Act (12 U.S.C. Sec. 2901 et seq.) and are mandatory to
evidence compliance. Generally, the data that are reported to the
Federal Reserve are not considered confidential.
Abstract: The Community Reinvestment Act (CRA) and Regulation BB
encourage financial institutions to help meet the credit needs of their
entire communities, consistent with safe and sound banking practices.
The information collection associated with CRA and Regulation BB
applies to state member banks, although not all are required to submit
data to the Federal Reserve. The requirements imposed on the
institutions are based primarily on the asset size of the institutions
and whether an institution elects to comply with the optional reporting
and recordkeeping requirements.
State member banks (SMBs) must delineate an assessment area(s) and
larger banks (as defined in Regulation BB) must provide a list of the
geographies within this area(s) to the Federal Reserve. State member
banks must keep a public file of required information. The public file
requirements are slightly different for small banks (as defined in
Regulation BB) or banks that were small banks during the prior calendar
year than for banks other than small banks. SMBs must display a public
notice in the lobby of the main office and each branch informing
consumers about the availability of certain CRA information. Banks
other than small banks (large banks) must maintain data on small
business and small farm loans; small banks may elect to maintain
information on those loans. Large banks must report aggregated data on
small business and small farm loans and on community development loans.
While Regulation C requires certain institutions to report Home
Mortgage Disclosure Act loan data and maintain information on those
loans, CRA additionally requires large banks that are HMDA reporters to
identify the location of each home mortgage loan application,
origination, or purchase outside the MSAs where the institution has
offices or outside any MSA. Any bank may elect to collect and maintain
records on consumer loans and other loan data for consideration under
the lending test. Also, any bank may collect, maintain, and report data
on lending by affiliates or a consortium/third party with which it is
involved. A bank that wishes to be evaluated under its own strategic
plan must submit that plan to the Federal Reserve and must operate
under it for at least one year before being evaluated under it. A bank
that wishes to be designated as a wholesale or limited purpose bank
must make that request in writing.
Current Actions: In May 1999 the Federal Reserve along with the
Office of Comptroller of the Currency (OCC), and the Federal Deposit
Insurance Corporation (FDIC), and Office of Thrift Supervision (OTS)
published a joint notice in the Federal Register, requesting comment on
their intent to extend the information collections for their CRA
regulations. Pursuant to 5 CFR 1320.16, this was an initial notice and
request for comment for the Federal Reserve; it was a final notice for
the other agencies. The agencies' request for OMB review involved a
reestimate of burden but no change in the underlying information
collections.
All four agencies received four public comment letters from banking
trade associations and one from a community interest group. The FDIC
and the OCC each received two letters from financial institutions. This
final notice addresses all the comment letters received by the four
agencies.
The community interest group commented that the benefits of
increased lending to underserved populations outweigh the costs and
that the burden estimates for large banks are overstated. The four
financial institutions commented that the burden estimates were low and
three provided estimates of their own burden for CRA. All four banking
trade associations commented that the new burden estimates are still
too low, although two acknowledged that the they are improved. The four
agencies recognize that their CRA regulations impose significant
regulatory burden on depository institutions, and they appreciate the
commenters' efforts to provide additional input. Although the estimates
may not necessarily represent
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the time spent by any particular institution, the agencies believe that
the burden estimates fairly represent the total burden on the industry
as a whole.
Three of the trade associations and two of the financial
institutions commented on the specific requirements that are included
in the burden estimates. The Federal Reserve's OMB supporting statement
provides a detailed list of the elements included in the burden
estimate. Two trade associations and one bank questioned whether the
collection of information is necessary for the proper performance of
the functions of the agency and is the least burdensome alternative.
The community interest group expressed the opposite view, that the
agencies cannot assess CRA performance without these data collection
requirements. The justification for this information collection and its
use by the Federal Reserve are also addressed in the OMB supporting
statement. Some commenters questioned the methodology used for
estimating the burden. As mentioned in the May 1999 Federal Register
notice, the agencies combined the information from several sources,
including public comments, contacts with CRA respondents, and
knowledgeable agency staff, to derive the burden estimates.
In addition to addressing the paperwork requirements of CRA,
several commenters discussed broader issues, including regulatory and
examination burden. One banking trade association also included
recommendations addressed to OMB. These issues are not addressed here
as they are not appropriate for this notice.
Board of Governors of the Federal Reserve System, August 13,
1999.
Jennifer J. Johnson
Secretary of the Board.
[FR Doc. 99-21481 Filed 8-18-99; 8:45am]
BILLING CODE 6210-01-F
