Bank Holding Company Reporting Requirements

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