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F ederal R

eserve

Bank

OF DALLAS
W IL L IA M

H. WALLACE

DALLAS, TEXAS 75222

FIRST V IC E PR ES ID ENT
AND CH IEF O PER ATING O FFICER

June 15, 1987
C irc u lar 87-40

TO:

The Chief Executive O fficer of a l l
member banks, bank holding companies,
edge c o r p o ra tio n s , and others concerned
in the Eleventh Federal Reserve D i s t r i c t
SUBJECT

Proposal t o charge assessments and fees f o r c e r t a i n supervisory
activities
DETAILS
The Board of Governors of the Federal Reserve System has requested
comment on a revised proposal to charge assessments and fees f o r c e r t a i n
supervisory a c t i v i t i e s .
Comments on the proposal should be addressed to Mr. William W Wiles,
.
S ecretary , Board of Governors of the Federal Reserve System, 20th S t r e e t and
C o n stitu tio n Avenue, N.W., Washington, D.C. 20551. All correspondence should
r e f e r to Docket No. R-0584, and must be received on or before Ju ly 6, 1987.
ATTACHM
ENTS
The Board's press re l e a s e and the m aterial as published in the
Federal Register are a ttach ed .

For additional copies of any circular please contact the Public Affairs Department at (214) 651-6289. Banks and others are
encouraged to use the following incoming WATS numbers in contacting this Bank (800) 442-7140 (intrastate) and (800)
527-9200 (interstate).

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

- 2 -

MORE INFORMATION
Questions p e r ta in in g to t h i s proposal should be d i r e c t e d to David W
.
Dixon of
t h i s Bank's Legal Department a t (214) 651-6228 or to the following
Supervision and Regulation Department personnel:
A p p lic a tio n s :

Gayle Teague (214) 651-6481

Bank Holding Company Supervision:

Richard J . Burda (214)

Supervision of Edge Corporations:

Linda M Myers (214) 651-6670
.
Sincerely yours

651-6472

F E D E R A ^ E S E R V E p re s s re le a ® ®
For immediate r e le a se

June 3, 1987

The Federal Reserve Board today requested comment on a revised
proposal t o charge assessments and fees f o r c e r t a i n supervisory a c t i v i t i e s .
The Board had previously requested comments on a s p e c i f i c schedule
of assessments and fees fo r the supervision of Edge Act corporations and f o r
processing various ap p lic a tio n s submitted t o the Federal Reserve System by
banks, bank holding companies, and other companies and in d iv id u a ls.
The Board i s now seeking comment on a revised proposal t h a t would
charge an annual assessment for inspection and supervision of the parent
company and nondepository s u b s i d i a r i e s of bank holding companies as well as
a s i g n i f i c a n t l y reduced fee schedule fo r supervising Edge Act corporations
and f o r processing a p p l i c a t i o n s .

While the Board i s s t i l l considering whether

to begin charging f o r c e r t a i n supervisory a c t i v i t i e s , the Board seeks comment
on t h i s revised approach of recovering a smaller percentage of costs over a
broader range of s e rv ic e s .
Comments on th ese proposals should be received by th e Board
July 6, 1987.
The Board's n o tice i s a ttach ed .
-0Attachment

FEDERAL RESERVE SYSTEM
12 CFR Parts 211, 225 and 262
[Docket No. R-0584]
ASSESSMENT OF FEES FOR
SUPERVISION OF EDGE CORPORATIONS AND
BANK HOLDING COMPANIES
AND FOR
PROCESSING APPLICATIONS

AGENCY:

Board of Governors of the Federal Reserve System

ACTION:

Proposed Rulemaking

SUMMARY:

On November 12, 1986, the Board of Governors of the

Federal Reserve System, sought public comment on a proposal to
assess fees for certain of its supervisory activities.
Federal Register 48101 (November 19, 1986).

51

The Board advanced

the proposal as a possible cost recovery measure to supplement
prior Board actions to streamline operations and eliminate
unnecessary functions.

This proposal was designed to recover the

total of identifiable costs incurred by the Federal Reserve in
supervising Edge Act corporations and in processing applications
submitted by banks, bank holding companies and others.

After

reviewing the comments submitted in response to its original
proposal, the Board is seeking comment on a revised proposal.
This proposal would levy charges for the supervision of bank
holding companies (in particular the parent holding company and
its nondepository subsidiaries) as well as for the supervision of

- 2 -

Edge Act corporations and for processing applications.

Under

this proposal fees and assessments would be set to recover about
half of the costs incurred by the Federal Reserve in conducting
these activities.

The Board also requests comment on whether, if

the Board does decide to charge for certain supervisory
activities, this revised proposal to charge lower fees but to
include bank holding company supervision is preferable to its
original proposal.

DATE:

Comments must be received by July 6, 1987.

ADDRESS:

All comments, which should refer to Docket No. R-0584,

should be mailed to William W. Wiles, Secretary, Board of
Governors of the Federal Reserve System, 20th Street and
Constitution Avenue, N.W., Washington, D.C.

20551, or should be

delivered to the Office of the Secretary, Room 2223, Eccles
Building, 20th Street and Constitution Avenue, N.W., between the
hours of 8:45 a.m. and 5:25 p.m. weekdays.

Comments may be

inspected in Room 1122, Eccles Building between 9:00 a.m. and
5:00 p.m. weekdays.

FOR FURTHER INFORMATION CONTACT:

Frederick M. Struble, Associate

Director, (202) 452-3794, Don E. Kline, Associate Director, (202)
452-3421, Kevin M. Raymond, Supervisory Financial Analyst (202)
452-257 3, or James V. Houpt, Supervisory Financial Analyst (202)
452-3 358, Division of Banking Supervision and Regulation; or
James E. Scott, Senior Counsel, (202) 452-3513, Legal Division,

- 3 -

or for users of Telecommunications Devices for the Deaf,
Earnestine Hill or Dorothea Thompson (202) 452-3544, Board of
Governors of the Federal Reserve System, Washington, D.C. 20551.

SUPPLEMENTARY INFORMATION:

Background.

In November, 1986, the

Board proposed for public comment a schedule of fees designed to
recover the identifiable costs incurred by the Federal Reserve in
supervising of Edge Act corporations (defined in Section 25(a) of
the Federal Reserve Act, 12 U.S.C. 611 et seq.) and in
)
processing applications filed by bank holding companies and state
member banks and by companies or individuals seeking to acquire
control of such banking organizations.

The Board's proposal to

begin to recover a portion of its costs was limited to these two
specific areas of activity in order to avoid duplicating charges
levied by other bank regulatory agencies.

Since the Board

supervises Edge Act corporations and processes applications
submitted to the System, Federal Reserve assessments and fees for
these activities would avoid a duplication of charges.
Most of the comments submitted by the public were
opposed to the proposal.

Various arguments were offered in

opposition, including the additional burden on banking
organizations at a time when they are experiencing strong
pressures on profit margins and the recommendation that general
revenues of the Board be used since the System's regulatory
activities are a necessary complement to its monetary policy
responsibilities.

- 4 -

After reviewing the comments submitted by the public,
the Board has revised its proposal to significantly lower the
proposed fees for applications and supervision of Edge Act
corporations.

In conjunction with that revision, however, the

Board is proposing a specific schedule of annual fees for
inspection and supervision of bank holding companies.

(The Board

previously sought comment on the general concept of charging for
such supervision.)

The Board has reached a tentative conclusion

that the Federal Reserve's supervision of bank holding companies,
particularly the assets of parent companies and the nondepository
subsidiaries of such companies, are also activities conducted
solely by the Federal Reserve.

Thus, it appears that a Federal

Reserve charge for these activities would also be more in the
nature of a charge for additional supervision rather than a
duplication of charges imposed by other agencies.
The Board , therefore, has decided to seek comment on a
proposal to charge for the supervision of parent holding
companies and their nondepository subsidiaries as well as for the
supervision of Edge Act corporations and for processing various
types of applications.

The proposal would set assessments and

fees to recover about half of the identifiable costs (based on
1986 estimates after certain downward adjustments) of each of
these activities.

Annual Assessments for the Inspection of Bank Holding Companies
While the Federal Reserve's supervision of bank holding
companies involves a review of examination reports and other data

- 5 -

relating to the condition of subsidiary depository institutions
the System ordinarily does not directly examine such depository
institutions as part of the process of inspecting bank holding
companies.

Moreover, subsidiary depository institutions pay

assessments to federal or state agencies.

Thus, to avoid double

assessment, the Board has decided to structure its proposal to
charge inspection fees in the form of an annual assessment to
bank holding companies so that they do not reflect the estimated
costs incurred by the System in reviewing these subsidiary
depository institutions.
In focusing on the nondepository activities of bank
holding companies, the Board is proposing to use, as the basis
for determining the annual assessment to be charged a holding
company, assets of the parent that are not investments in or
claims on any subsidiary, whether depository or nondepository,
plus the assets of nondepository subsidiaries.

The specific

calculation to obtain the adjusted parent plus nondepository
assets amount is as follows:

add the total assets for the parent

company and its consolidated nondepository subsidiaries, and then
subtract parent company loans and advances to, and investments
in, depository and nondepository subsidiaries.
The Board is proposing a schedule of annual fees to be
paid by all but the smallest bank holding companies for
inspection and supervision both on premises and off premises.
The Board believes that a standard fee schedule based on the size
of a bank holding company's nondepository assets is preferable to
an approach based upon recorded staff time.

The standard fee

- 6 -

schedule is easier to administer, more predictable for budgetary
and planning purposes of the entity being assessed, and less
likely to result in disputes as to time spent and examiner
productivity, disputes that might reduce the quality of the
inspection process.

The Board notes that it has proposed a

similar approach for charging for its supervision of Edge
corporations for the same reasons.

Some commenters asserted, in

discussing the proposal for Edge corporations, that a fee
schedule that varies on the basis of asset size is inequitable
for larger bank holding companies.

But there is, in fact, a

general correlation between time spent and costs incurred in an
inspection and the size of the company inspected, and the
proposal has been structured to reflect that correlation.
Moreover, since the Board is proposing to collect revenues equal
to only one half of the estimated costs of supervising bank
holding companies (after first making adjustments for the costs
involved in supervising depository subsidiaries), no organization
will be charged a fee that exceeds the cost incurred in
supervising its parent company and nondepository subsidiaries.
Similarly, the Board is proposing that the annual fee for
the inspection and supervision of bank holding companies include
pre-inspection monitoring and post-inspection evaluation
conducted off site.

A significant part of the Federal Reserve's

work in the supervision and inspection process consists of
monitoring reports and other data provided by bank holding
companies, evaluating performance trends, developing peer group
standards for comparison, and generally in deciding when an

- 7 -

on-site inspection is needed.

The Board is requesting comment,

however, on whether an annual assessment should be paid only if
an on-site inspection is performed.
The estimated direct and overhead costs attributed to
the overall supervision of bank holding companies by the System’s
accounting system amounted to approximately $24 million in 1986.
The Board has estimated that the costs incurred in supervising
the depository subsidiaries of bank holding company was
approximately $6 million.

This amount, consequently, was

deducted from the estimate of the total cost involved in
supervising bank holding companies before developing the schedule
of annual assessments presented in Table 1.

A decision was also

made not to levy a charge on banking organizations that have
total nondepository assets of less than $50,000.

Annual Assessments for Supervising Edge Act Corporations and for
Processing Applications
Table 2 presents the schedule of annual assessments for
Edge Act corporations the Board is contemplating adopting as part
of the proposal in which it would charge for the supervision of
bank holding companies and Edge Act corporations and for
processing various applications submitted to the Federal Reserve.
The assessment schedules shown in the table are basically similar
in form to those in the Board's November 1986 fee proposal.

That

is, separate schedules are specified for investment Edges and
banking Edges and the structure of assessments for both groups of
organizations increases with their size.

These structural

features were adopted in order that the relative size of

- 8 -

assessments charged different organizations would be consistent
with the relative costs the System incurs in supervising them.
The assessment schedules shown in Table 2 have been revised to
reflect the estimated costs incurred in supervising Edge Act
corporations in 1986 (rather than in 1985 as used in the previous
proposal) and have been set to produce revenues equal to
approximately half those costs.
Tables 3 and 4 present alternative fee schedules for
applications that the Board is contemplating using if it decides
to adopt the proposal of charging for supervising bank holding
companies and Edge Act corporations and for processing
applications.

The fee structures presented in the tables are

also similar in basic form to the November proposal.

Table 3

shows fees that would be charged for processing three different
groupings of applications if the Board were to charge a flat fee
for each type of application.

Table 4 uses the same groupings of

applications as in Table 3, but would vary the fee charged for
processing applications in each group in accordance with the "pro
forma" size of the applicant.

The level of fees in both tables

have been set to collect revenues equal to one half of the
estimated costs (after certain deductions) incurred by the System
in processing applications in 1986.

The Board is proposing to

adopt the more flexible Table 4 proposal.

Neither table would

contemplate charging for processing Federal Reserve membership
applications or ATM applications, and fees for certain
applications that must be submitted in conjunction with other
applications would be set at a reduced level.

TABLE 1

Schedule of Annual Assessment to be Charged Bank Holding Companies

Nonbank Assets of
Parent Holding Company
Plus Assets of
.
Nonbank Subsidiaries
($ Millions)

_______ Annual Assessment
Excess
This
plus
times
Over
Amount
Factor
($ Millions)
($)

.05

.0

0

0.000000

.0

.05

-

.2

0

0.003000

.05

.2

-

.5

450

0.000400

.2

.5

-

1.0

570

0.000300

.5

1.0

-

10.0

720

0.000200

1.0

10.0

-

25.0

2,520

0.000120

10.0

25.0

-

100.0

4,320

0.000090

25.0

100.0

-

500.0

11,070

0.000060

100.0

500.0

- 2,000.0

35,070

0.000020

500.0

2,000.0

- 5,000.0

65,070

0.000016

2,000.0

5,000.0

- 15,000.0

113,070

0.000011

5,000.0

223,070

0.000005

15,000.0

15,000 .0 and over

For each bank holding company, the asset total for parent +
nonbank subsidiary amount is to be computed by (a) adding total
assets for the parent company and its consolidated nonbank
subsidiaries, and (b) then subtracting parent company loans and
advances to, and investments in, bank and nonbank subsidiaries.

Table 2

Schedule of Annual Assessments for Edge and Agreement Corporations

Annual Assessment
Total Assets
Plus Standby
Letters of Credit
($ Millions)

This
Amount

Plus

Factor

Times

Excess
Over
($ Millions)

($)

Investment Corporations: 1/
0-10

0

500
1,500
2,550
6,300
20.300
44.300
86.300

0.000100

0.000070
0.000050
0.000035
0.000016
0.000014
0.000009

5,000

0-10

1000

10-25
25-100
100-500
500-2,000
2,000-5,000
Over 5,000

3,000
4,800
11.550
35.550
65.550
113,550

000200
000120

10

000090
000060

100

10-25
25-100
100-500
500-2,000
2,000-5,000
Over 5,000

10

25
100

500
2,000

Banking Corporations:

Plus

1/

0
25

0.000020

500

0.000016

2,000

0.000011

5,000

.0000020 times the amount of commitments
to purchase foreign currencies and U.S.
dollar exchange.

Consolidated with their subsidiaries.

TABLE 3

Alternative Flat Fee Schedule for Processing Applications
Submitted to the Federal Reserve System

Type of Application
Category A:

Fee
$4,100

Bank holding company formations,
acquisition of banks, nonbanks (going concerns)
and bank holding companies;
bank holding company stock
redemptions and changes in control;
international investment applications.
Category B:

2,000

Initial foreign branches,
Edge Act and other international activities;
domestic bank mergers;
and changes in control for state member banks.
Category C:
Bank holding company nonbank acquisitions
(de novo) and
state member bank branches,
bank service corporations,
investments in bank premises and issuance
of capital notes by state member banks;
certain foreign branch and investment
notifications.

1,000

TABLE 4

Proposed Fee Schedule for Processing Applications
Submitted to the Federal Reserve System

Fee
Total Assets1
($ Millions)
2
Category A
0 150
150 1,000
1,000 5,000
5,000 - 10,000
Over 10,000

This
Amount
($)

plus

Factor

Excess
times
Over
($ Millions

3,200
3,200
4,700
6,200
7,700

0
.000001764
.000000375
.000000300

1,200
1,200
1,700
2,200
2,700

0
.000000588
.000000125
.000000100

150
1,000
5,000

700
700
900
1,100
1,300

0
.000000235
.000000050
.000000040

150
1,000
5,000

-

150
1,000
5,000

Category B
0
150
150
- 1,000
1,000
- 5,000
5,000
- 10,000
Over 10,000

—

Category C
0
150
150
- 1,000
1,000
- 5,000
5,000
- 10,000
Over 10,000

1Total assets are to be measured on a pro forma basis —
applicant's total assets if its application is approved.
2

-

that is, the

For types of applications and notifications included in each category,
see Table 3.

_ 9 -

Specific Issues for Comment.

The Board requests comment on the

following issues raised by the proposed rulemaking.
1.

The Board has proposed a revised schedule of assessments for
the supervision of Edge corporations (Table 2) as well as
revised alternative schedules of fees for the processing of
a variety of applications filed with the Board (Tables 3 and
4). The fees are substantially lower than originally
proposed (see 51 Federal Register 48101 November 19, 1986)),
in part, because the Board has expanded the scope of the
proposed system of charges to include a significant
additional Board function — inspection of bank holding
companies — for which a schedule of proposed assessments
is presented in Table 1. The Board seeks comment on
whether, if it decides to charge for supervisory activities,
it should adopt the schedule of fees contained in Tables 1,
2 and 4 to recover approximately half of the
System's costs in conducting these activities, or whether it
should charge fees at a much higher level, as proposed in
November 1986, only for Edges corporation supervision and for
processing a variety of applications (approximately two
times the proposed fees in Tables 2 and 4). If assessments
and fees are to be charged only for the narrower set of
supervisory functions, they would be established to recover
virtually all of the System's costs in conducting these
activities.

2.

Whether the proposed fee schedule for inspection of bank
holding companies is reasonably structured as based on a
sliding scale to be determined by nondepository asset size?

3.

Whether in setting the annual fees for inspection and
supervision of bank holding companies, the Board should
assess such fees only if an on-site inspection is performed?

Regulatory Flexibility Act.

The Board is sensitive to the impact

of the proposed rule on small entities.

Consequently, the Board

is considering the imposition of fees for supervision of Edge
corporations for the inspection of bank holding companies and for
applications on a sliding scale based upon the size of the
regulated organization.

It has proposed comparatively limited

fee assessments for smaller organizations, and, indeed, proposes
not to charge bank holding companies that have relatively minimal
amounts of nondepository assets.

Moreover, the proposed

- 10 -

schedules are designed to recover partially those costs
associated with a particular supervisory activity.

The Board

believes the fees payable will be sufficiently small as to have
no significant impact on the financial stability of a reasonably
profitable institution.
The proposed regulation imposes no additional
information collection requirements.

List of Subjects
12 CFR Part 211
Accounting for fees on international loans; Schedule of
fees for examination; Allocated transfer risk reserve; Reporting
and disclosure of international assets; Banks, banking; Federal
Reserve System; Foreign banking; Reporting and recordkeeping
requirements; Export trading companies.
12 CFR Part 225
Banks, banking; Federal Reserve System, Holding
companies; Reporting and recordkeeping requirements; Schedule of
fees for inspection.

- 11 -

12 CFR Part 262
Administrative practice and procedure; Banks, banking;
Federal Reserve System; Holding companies; Schedule of fees for
applications.
For the reasons set forth above, the Board proposes to
amend 12 CFR Parts 211, 225 and 262 as follows:
Part 211 - INTERNATIONAL BANKING OPERATIONS
1.

The authority citation for Part 211 continues to read as

follows:
Authority: Federal Reserve Act (12 U.S.C. 211 et seq.); Bank
Holding Company Act of 1956, as amended (12 U.S.C. 1841 et seq.);
the International Banking Act of 1978 (Pub. L. 95-369; 92 Stat.
607; 12 U.S.Cl 3101 et seq.); the Bank Export Services Act (Title
II, Pub. 97-2U0, 96 Stat. 1235); and the International Lending
Supervision Act (Title IX, Pub. L. 98-181, 97 Stat. 1153).
2.

Section 211.4 (a) is amended by adding an additional

subparagraph (7) to read as follows:
(7) Edge corporations shall be assessed an annual fee
by the Board for supervision and inspection.

The schedule of

such fees is provided in section 263.3(d) of the Board's Rules of
Procedure, 12 CFR 262.3(d).
Part 225 BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL
3.

The authority citation for part 225 is revised to read as

follows:
Authority:

12 U.S.C. 1817(j)(13), 1818, 1843(c)(8), 19844, 3106,

3108, 3907, 3909.

- 12 -

4.

Subsection 225.5 is amended by adding paragraph (d) to read

as follows:
(d) The Board shall assess fees for inspection of bank
holding companies on the basis of the assets of the parent
holding companies and all nondepository subsidiaries according to
the following schedule.
Schedule of Annual Assessment to be Charged Bank Holding Companies

Nonbank Assets of
Parent Holding Company
Plus Assets of
Nonbank Subsidiaries
($ Millions)

Annual Assessment
This
Amount
($)

plus

Factor

times

Excess
Over
($ Millions)

.0

—

.05

0

0.000000

.0

.05

-

.2

0

0.003000

.05

.2

-

.5

450

0.000400

.2

.5

-

1.0

570

0.000300

.5

1.0

-

10.0

720

0.000200

1.0

10.0

-

25.0

2,520

0.000120

10.0

25.0

-

100.0

4,320

0.000090

25.0

100.0

-

500.0

11,070

0.000060

100.0

500.0

- 2,000.0

35,070

0.000020

500.0

2,000.0

- 5,000.0

65,070

0.000016

2,000.0

5,000.0

- 15,000.0

113,070

0.000011

5,000.0

223,070

0.000005

15,000.0

15,000.0 and over

For each bank holding company, the asset total for parent +
nonbank subsidiary amount is to be computed by (a) adding total
assets for the parent company and its consolidated nonbank
subsidiaries, and (b) then subtracting parent company loans and
advances to, and investments in, bank and nonbank subsidiaries.

- 13 -

5.

Subsection 225.24(a) is amended to read as follows:
(a)

Filing application.

An application for the

Board's prior approval under this subpart shall be filed with
the appropriate Reserve Bank on the designated form and shall
comply with section 262.3 of the Rules of Procedure (12 CFR
262.3), which requires the payment of an application fee and the
publication by the applicant of newspaper notice of the
application.
6.

Subsection 225.43(a) is amended by adding the following

sentence at the end of the present section:
(a) . . . Each notice shall be accompanied by the
appropriate fee as set forth in section 262.3 of the Board's
Rules of Procedures

(12 CFR 262.3).

Part 262 - RULES OF

PROCEDURE

7.

The authority citation for Part 262 is revised to read as

follows:
Authority: Administrative Procedure Act (5 U.S.C. 552); Bank
Holding Company Act

(12 U.S.C.

1841 et seq.); International

Banking Act of 1978

(12 U.S.C.

3101 et seq.); and

the

International Lending Supervision Act (12 U.S.C. 3901
et seq.)
.
8.

Paragraphs 262.3(d) through (1) are relettered as paragraphs

262.3(e) through (m).
9.

A new paragraph 262.3(d) is added to section 262 to read as

follows:
(d)(1)

The Board shall assess fees for the filing of

all applications (except applications for membership in the

- 14 -

Federal Reserve System and for ATM applications) according to the
following schedule.

Proposed Fee Schedule for Processing Applications
Submitted to the Federal Reserve System

Fee
Total Assets
($ Millions)

This
Amount
($)

plus

Factor

Excess
times
Over
($ Millions)

2

Category A
0
150
150
- 1,000
1.000
- 5,000
5.000
- 10,000
Over 10,000

3.200
3.200
4.700
6.200
7.700

.000001764
.000000375
.000000300

150
1,000
5,000

1,200
1,200
1.700
2,200
2.700

.000000588
.000000125
.000000100

150
1,000
5,000

700
700
900
1,100
1,300

000000235
000000050
000000040

150
1,000
5,000

Category B
0
150
150
- 1,000
1.000
- 5,000
5.000
- 10,000
Over 10,000
Category C
0
150
150
- 1,000
1.000
- 5,000
5.000
- 10,000
Over 10,000

^■Total assets are to be measured on a pro forma basis —
applicant's total assets if its application is approved.

that is, the

2For types of applications and notifications included in each category,
see Table 3.

- 15 -

(d)(2)

The Board shall assess fees for the supervision

of Edge Act corporations according to the following schedule.

Schedule of Annual Assessments for Edge and Agreement Corporations

Annual Assessment
Total Assets
Plus Standby
Letters of Credit
($ Millions)

This
Amount

Plus

Factor

Times

Excess
Over
($ Millions)

($)

Investment Corporations: 1/
0-10
10-25
25-100
100-500
500-2,000
2, 000-5,000
Over 5,000

500
1,500
2 r550
6,300
20.300
44.300
86.300

0.000100
0.000070
0.000050
0.000035
0.000016
0.000014
0.000009

0
10
25
100
500
2,000
5,000

1000
3,000
4,800
11.550
35.550
65.550
113,550

0.000200
0.000120
0.000090
0.000060
0.000020
0.000016
0.000011

0
10
25
100
500
2,000
5,000

Banking Corporations:
0-10
10-25
25-100
100-500
500-2,000
2,000-5,000
Over 5,000

Plus:

1/

.0000020 times the amount of commitments
to purchase foreign currencies and U.S.
dollar exchange.

Consolidated with their subsidiaries.

- 16 -

By order of the Board of Governors of the Federal
Reserve System, June 2, 1987.

(signed) William W. Wiles
William W. Wiles
Secretary of the Board


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102