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FEDERAL RESERVE BANK OF NEW YO RK [ Circular No. 10816 December 18, 1995 ~ 1 J FEDERAL RESERVE REGULATORY REVIEW To All Depository Institutions, and Others Concerned, in the Second Federal Reserve District: T h e follo w in g is from the text o f a statem ent issued by the B oard o f G overnors o f the Federal R eserv e System announcing a tim etable for review ing its m ajo r regulations, policy statem ents, and other item s: The Federal Reserve Board has issued a schedule for review of its major regulations, policy statements and other regulatory guidance, pursuant to the requirements of section 303 o f the Riegle Community Development and Regulatory Improvement Act of 1994. The timetable should enable interested parties to comment meaningfully at various points in the review process, including providing suggestions for the development o f regulatory proposals. Printed on the follow ing pages is the text o f the B o ard ’s o fficia l n otice in this matter, as published in the F e d e r a l R e g i s t e r . Q uestions regarding the B o ard ’s regulatory review may be directed to our C om p liance Exam inations D epartm ent (Tel. No. 2 1 2 -7 2 0 -5 9 1 4 ). W il l ia m J. M cD onough, P r e s id e n t . 53546 Federal Register / Vol. 60, No. 199 / / P roposed R ules FEDERAL RESERVE SYSTEM 12 CFR Chapter II [D o c k e t No. R -0 8 9 8 ] Section 303 Regulatory Review Timetable AGENCY: B o a r d o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s te m . ACTION: S c h e d u l e fo r r e v i e w o f r e g u la t i o n s . SUMMARY: T h e B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s te m (th e B o a r d ) is p u b li s h i n g a s c h e d u l e fo r r e v i e w o f its m a jo r re g u la tio n s , p o lic y s ta te m e n ts , a n d o t h e r r e g u la t o r y g u i d a n c e p u r s u a n t to t h e r e q u i r e m e n t s o f s e c t i o n 3 0 3 o f th e R ie g le C o m m u n i t y D e v e l o p m e n t a n d R e g u l a to r y I m p r o v e m e n t A c t o f 1 9 9 4 ( S e c t i o n 3 0 3 ) . T h e t im e ta b le s h o u l d e n a b l e i n t e r e s t e d p a r t ie s t o c o m m e n t m e a n i n g f u l ly a t v a r i o u s p o i n t s in t h e r e v i e w p r o c e s s , i n c l u d i n g p r o v id in g s u g g e s t i o n s fo r th e d e v e l o p m e n t o f r e g u la t o r y p r o p o s a l s fo r c o m m e n t . A n y c o m m e n t s r e c e i v e d w il l b e c o n s i d e r e d d u r in g t h e c o u r s e o f t h e i n d i v i d u a l r e v i e w s l is t e d b e lo w . S e v e r a l m a j o r re g u la to ry re v ie w s a re c u rr e n tly p e n d in g b e f o r e t h e B o a r d , a n d t h e s e a ls o a r e s e t f o r th in t h e n o t i c e . T h e B o a r d h a s a lre a d y u n d e rta k e n v a rio u s m e a s u re s s i n c e t h e p a s s a g e o f S e c ti o n 3 0 3 to fu lfill i ts m a n d a t e t o s t r e a m l i n e a n d i m p r o v e t h e B o a r d ’s r e g u l a t i o n s a n d p o l i c i e s , a s w e ll a s to w o r k j o i n tl y w it h t h e o t h e r F e d e r a l b a n k in g a g e n c i e s t o m a k e u n i f o r m r e g u la t i o n s a n d g u i d e l i n e s i m p le m e n t in g c o m m o n sta tu to ry a n d su p e rv is o ry p o lic ie s . DATES: C o m m e n t s m a y b e s u b m it t e d u n t il f u r t h e r n o t i c e . ADDRESSES: C o m m e n t s s h o u l d r e f e r to D o ck et N o. R - 0 8 9 8 , a n d m a y b e m a ile d to W i l l i a m W . W i l e s , S e c r e t a r y , B o a r d o f G o v e rn o rs o f th e F e d e ra l R e se rv e S y s t e m , 2 0 t h a n d C S tr e e ts , N .W ., W a s h i n g t o n , D .C . 2 0 5 5 1 . C o m m e n t s a l s o m a y b e d e l i v e r e d to R o o m B - 2 2 2 2 o f th e E c c l e s B u i l d i n g b e tw e e n 8 :4 5 a .m . a n d 5 : 1 5 p .m . w e e k d a y s , o r to th e g u a r d s t a ti o n in t n e E c c l e s B u i ld in g c o u r t y a r d o n 2 0 t h S tr e e t, N .W . (b e tw e e n C o n s t i t u t i o n A v e n u e a n d C S tr e e t) a t a n y t im e . C o m m e n t s r e c e i v e d w il l b e a v a il a b le f o r i n s p e c t i o n in R o o m M P 5 0 0 o f t h e M a r tin B u i ld in g b e tw e e n 9 : 0 0 a .m . a n d 5 : 0 0 p .m . w e e k d a y s , e x c e p t a s p r o v id e d in 1 2 C F R 2 6 1 . 8 o f th e B o a r d ’s Federal Register / V ol. 60, N o. 199 / r u l e s r e g a r d i n g t h e a v a il a b il it y o f in fo rm a tio n . FOR FURTHER INFORMATION CONTACT: T h o m a s A . D u rk in , R e g u l a to r y P l a n n i n g a n d R e v ie w D i r e c to r , O ff ic e o f th e S e c r e t a r y ( 2 0 2 / 4 5 2 - 3 2 3 6 ) ; S te p h e n M . L o v e tte , M an ag er, P o lic y I m p l e m e n t a t i o n S e c t i o n , D iv is io n o f B a n k in g S u p e r v is io n a n d R e g u l a ti o n ( 2 0 2 / 4 5 2 - 3 6 2 2 ) ; Ja n e A h r e n s , S e n i o r A t t o r n e y , D iv is io n o f C o n s u m e r a n d C o m m u n i t y A f f a ir s ( 2 0 2 / 4 5 2 - 3 6 6 7 ) ; o r M i c h a e l J. O ’R o u r k e , S e n i o r A t t o r n e y , L e g a l D i v is io n ( 2 0 2 / 4 5 2 - 3 2 8 8 ) ; fo r th e h e a r i n g i m p a ir e d only, c o n t a c t D o r o th e a T h o m p s o n , T e l e c o m m u n i c a t i o n s D e v ic e fo r t h e D e a f (T D D ) ( 2 0 2 / 4 5 2 - 3 5 4 4 ) , B o a rd o f G o v e rn o rs o f th e F e d e ra l R e s e r v e S y s te m , 2 0 t h S tr e e t a n d C o n s ti tu t io n A v e n u e , N W ., W a s h in g to n , DC 2 0 5 5 1 . SUPPLEMENTARY INFORMATION: Background S e c t i o n 3 0 3 ( a ) ( 1 ) o f t h e R ie g le C o m m u n i ty D e v e l o p m e n t a n d R e g u l a to r y I m p r o v e m e n t A c t o f 1 9 9 4 r e q u ir e s t h a t e a c h F e d e r a l b a n k in g a g e n c y sh a ll, c o n s is te n t w ith th e p r i n c i p l e s o f s a f e ty a n d s o u n d n e s s , s t a t u t o r y la w a n d p o l i c y , a n d t h e p u b li c in te re s t: (1) Conduct a review of the regulations and w ritten policies o f that agency to— (A) Stream line and m odify those regulations and policies in order to improve efficiency, reduce unnecessary costs, and elim inate unwarranted constraints on credit availability; (B) Remove inconsistencies and outmoded and duplicative requirem ents; and (C) W ith respect to regulations prescribed pursuant to section 18(o) of the Federal Deposit Insurance Act (real estate lending standards], consider the im pact that such standards have on the availability o f credit for sm all business, residential, and agricultural purposes, and on low- and m oderate-incom e com m unities; (2) Work jointly w ith the other Federal banking agencies to make uniform all regulations and guidelines im plem enting com m on statutory or supervisory policies; and (3) Subm it a joint report to the Congress at the end o f such 2-year period [Septem ber 23, 1996] detailing the progress of the agencies in carrying out [these provisions]. 1 2 U .S .C . 4 8 0 3 ( a ) ( 1 ) T h e r e a r e s e v e r a l a s p e c t s to s e c t i o n 3 0 3 ’s r e g u la t o r y r e v i e w m a n d a t e . T h e fir s t c o m p r i s e s a n in t e r n a l r e v i e w o f th e B o a r d ’s o w n r e g u la t i o n s a n d w r i tt e n p o l i c i e s fo r p u r p o s e s o f s t r e a m li n i n g , d u p lic a ti-v e r e q u ir e m e n ts . T h e s e c o n d a s p e c t r e q u ir e s t h a t t h e B o a r d w o r k jo in tly w it h t h e o t h e r b a n k in g a g e n c i e s to r e n d e r u n i f o r m r e g u l a t i o n s a n d g u i d e l i n e s i m p le m e n t in g c o m m o n s t a tu t o r y a n d s u p e r v i s o r y p o l i c i e s . F i n a l l y , t h e B o a r d a n d t h e o th e r b a n k in g a g e n c i e s m u s t r e p o r t to t h e C o n g r e s s , b y S e p te m b e r 2 3 , 1 9 9 6 , o n th e p ro g re ss th e y h a v e m a d e u n d e r S e c t i o n 3 0 3 . T h e B o a r d h a s p l a c e d a h ig h p r i o r i ty o n , a n d w il l d e v o t e c o n s i d e r a b l e r e s o u r c e s t o , f u l f i ll m e n t o f s e c t i o n 3 0 3 ’s m a n d a te . T o t h a t e n d , t h e B o a r d h a s a s s e m b l e d a s t a f f t e a m fo r e a c h o f its r e g u la t i o n s a n d g u i d e l i n e s fo r p u r p o s e s o f its i n t e r n a l r e v i e w s fo r s t r e a m li n i n g an d e ff ic ie n c y p u rp o s e s , a n d th o s e te a m s h a v e c o m m e n c e d th e ir re v ie w s. In t h a t r e g a r d , m a j o r r e v i e w s o f s e v e r a l B o a r d r e g u l a t i o n s a r e a l r e a d y in p r o c e s s . T h e s e i n c l u d e , a m o n g o th e r s , R e g u l a ti o n T ( s e c u r i t i e s c r e d i t ) ; R e g u l a ti o n E ( e l e c t r o n i c f u n d s t r a n s f e r s ); R e g u l a ti o n M ( c o n s u m e r l e a s in g ); a n d R e g u l a ti o n K , S u b p a r t A ( in v e s tm e n t s b y f o r e ig n b a n k in g o r g a n iz a t i o n s in U .S . s u b s i d i a r ie s ) . In a d d i t i o n , t h e B o a r d p r o p o s e s to u n d e rta k e c o m p re h e n s iv e re v ie w s o f s e v e r a l a d d i t i o n a l m a j o r r e g u la t i o n s w it h i n t h e n e x t t w o y e a r s . T h e s e i n c l u d e : R e g u l a ti o n H ( m e m b e r s h i p in th e F e d e r a l R e s e r v e S y s te m ); R e g u l a ti o n K , g e n e r a ll y ( i n t e r n a t i o n a l b a n k in g o p e r a t i o n s ) ; a n d R e g u l a ti o n Y (b a n k h o ld in g c o m p a n i e s a n d c h a n g e in b a n k c o n t r o l ) . O th e r r e v i e w s o f g e n e r a l i n t e r e s t a r e l is t e d o n th e s c h e d u l e o f B o a r d r e g u l a t o r y r e v i e w s a p p e a r in g b e lo w . T h e B o a rd h a s a lre a d y ta k e n se v e ra l s t e p s to e a s e r e g u la t o r y b u r d e n o n th e b a n k in g i n d u s t r y a n d th e p u b l i c s i n c e th e i n c e p t i o n o f S e c t i o n 3 0 3 . In t h a t re g a rd , th e B o a r d h a s: (1) Sim p lified and expedited procedures under Regulation Y for applications and notices; (2) Eased anti-tying restrictions to allow beneficial d iscount arrangem ents for bank products; (3) Elim inated an entire class of non control determ inations under section 2(g)(3) of the Bank Holding Company Act; (4) Eased branching interpretations regarding loan production offices; and (5) R evised the Com m unity Reinvestm ent Act regulations to em phasize performance, promote consisten cy in evaluations, and elim inate unnecessary burden. In a l l , t h e B o a r d h a s u n d e r t a k e n o v e r 2 0 s e p a ra te m e a s u re s s in c e th e p a ssa g e o f s e c t i o n 3 0 3 to r e d u c e b u r d e n a n d i m p r o v in g e f f i c ie n c y , r e d u c i n g s im p lif y its r e g u la t i o n s , w r i t t e n p o l i c ie s , u n n e c e s s a r y c o s t s , a n d r e m o v in g a n d p r o c e d u r e s . In a d d i t i o n , th e B o a r d in c o n s is te n c ie s an d o u tm o d e d / h a s s e v e r a l p r o p o s a l s o u t fo r c o m m e n t / P rop osed R ules 53547 w h i c h w i l l f u r t h e r t h e s e e f f o r ts , i n c l u d i n g a r e c e n t p r o p o s a l to e x p a n d th e g e n e r a l c o n s e n t a u t h o r i t y u n d e r R e g u l a ti o n K r e g a r d i n g c e r t a i n fo r e ig n i n v e s t m e n t s b y U .S . b a n k in g o r g a n i z a t i o n s . T h e B o a r d v ie w s s e c t i o n 3 0 3 a s a n o p p o r t u n i t y to c o n t i n u e th e s e e f f o r ts o n a c o m p r e h e n s i v e in t e r n a l a n d i n t e r a g e n c y b a s is . In c o n n e c t i o n w it h s e c t i o n 3 0 3 , th e B o a rd c o n te m p la te s a c o m p re h e n s iv e r e v i e w o f a ll o f i ts r e g u la t i o n s a n d w ritte n p o lic ie s , in c lu d in g p o lic y s ta te m e n ts , B o a rd in te rp re ta tio n s , m i s c e l l a n e o u s m a t e r i a l s in th e F e d e r a l R e s e r v e R e g u l a to r y S e r v i c e ( F .R .R .S .) , S u p e r v i s o r y (S R ) L e tt e r s , a n d t h e lik e . F o r e x a m p l e , B o a r d s ta f f w il l r e v i e w w e ll o v e r 5 0 0 S R L e t t e r s , a s u b s t a n t i a l n u m b e r o f w h i c h c a n b e e l i m i n a t e d as o b s o le te a n d th e re m a in d e r stre a m lin e d , u p d a te d a n d c o m b in e d . F o r so m e o f t h e s e i t e m s , s u c h a s t h e B o a r d ’s r e g u l a t i o n s a n d p o l i c y s t a t e m e n t s , th e B o a r d i n t e n d s t o s e e k p u b li c c o m m e n t d u r in g t h e c o u r s e o f t h e i r i n d iv i d u a l r e v i e w s . T o t h i s e n d , t h e B o a r d is p u b li s h i n g b e lo w a s c h e d u l e o f t h e m a jo r re g u la to ry re v ie w s o v e r th e n e x t s e v e r a l y e a r s . A l l o f t h e B o a r d ’s r e g u l a t i o n s , p o l i c y s t a t e m e n t s a n d o th e r r e g u l a t o r y g u i d a n c e w il l b e r e v i e w e d , a n d a d d i t i o n a l i n d i v i d u a l i te m s w il l b e p u t o u t fo r p u b l i c c o m m e n t . It is h o p e d t h a t , b y p r o v i d i n g t h i s s c h e d u l e , c o m m e n t e r s w il l h a v e th e a b il it y to a d d r e s s s i g n i f i c a n t r e g u la t o r y i s s u e s in a n o r d e r l y a n d f o c u s e d f a s h i o n , i n c l u d i n g p r o v id in g s u g g e s t i o n s r e g a r d i n g r e g u la t o r y p r o p o s a l s fo r c o m m e n t . F o r i n d iv i d u a l i te m s o n w h i c h t h e B o a r d m a y d e t e r m i n e n o t to s e e k p u b li c c o m m e n t , s u c h as re v ie w s o f a d m in is tra tiv e SR L e tte rs o r in fo rm a l sta ff in te rp re ta tio n s , t h e B o a r d p r o p o s e s to c o n d u c t a n i n t e r n a l a s s e s s m e n t to i d e n ti f y g u i d a n c e t h a t m a y b e i n c o n s i s t e n t w it h , o r r e n d e r e d o b s o l e t e b y , t h e B o a r d ’s c u r r e n t p o l i c i e s , a n d u p d a t e o r d e le t e th e m a s a p p ro p ria te . In fo rm a tio n ab o u t a n y a n d a ll B o a r d 3 0 3 r e v i e w s m a y b e o b t a i n e d fr o m t h e B o a r d s ta f f m e m b e r s lis t e d in t h i s n o t i c e . I n t e r e s t e d p a r t ie s h a v e a l r e a d y s u b m it t e d s o m e c o m m e n t s to t h e B o a r d r e g a r d i n g i ts r e g u l a t i o n s , i n t e r p r e t a t i o n s a n d p r o c e d u r e s u n d e r th e im p e tu s of S e c t i o n 3 0 3 , a n d th e B o a r d w ill c a r e f u l l y c o n s i d e r t h e s e c o m m e n t s in th e c o u r s e o f t h e a p p r o p r i a t e i n d iv i d u a l r e v i e w s . T h e B o a r d c o n t i n u e s to w e lc o m e c o m m e n ts p ro m p te d by S e c tio n 3 0 3 . 53548 Federal Register / V ol. 60, N o. 199 / F ederal Reserve Board T entative Schedule Regulation/policy statement/ other regulatory guidance / P rop osed R ules of S elected Regulatory Reviews Under S ection 303 Description Target review dates1 Reg. E, 12 CFR Part 205 ... Electronic Fund Transfers (stored value cards, home banking, etc.) .......................................... 2nd Half 1995. Reg. H, 12 CFR 208.23 ...... Loans in Areas Having Special Flood Hazards .............................................................................. 2nd Half 1995. International Banking Operations: Representative Office Rules; General Consent Authority; 2nd Half 1995. Reg. K, 12 CFR 211.5, Management of Shell Branches; Subpart B Interstate/Bank Merger Rules. 211 .22 , 211 ._. Reg. U, 12 CFR Part 221 ... Credit by Banks for the Purpose of Purchasing or Carrying Margin Stock ................................. 2nd Half 1995. Reg. D, 12 CFR Part 204 ... Reserve Requirements of Depository Institutions ........................................................................... 1st Half 1996. Reg. G, 12 CFR Part 207 ... Securities Credit by Persons Other Than Banks, Brokers, or Dealers ....................................... 1st Half 1996. Reg. O, 12 CFR Part 215 ... Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks ........... 1st Half 1996. Reg. R, 12 CFR Part 218 ... Relationships with Dealers in Securities Under Section 32 of the Banking Act of 1933 .......... 1st Half 1996. 4 F.R.R.S. 9-1000 .............. Payments System Risk Policy........................................................................................................... 1st Half 1996. Reg. L, 12 CFR Part 212 ... Management Official Interlocks ......................................................................................................... 1st Half 1996. Reg. AA, 12 CFR Part 227 . Unfair or Deceptive Acts or Practices .............................................................................................. 1st Half 1996. Bank Holding Companies and Change in Bank C ontrol................................................................ 1st Half 1996. Reg. Y, 12 CFR Part 225, All Provisions. 1st Half 1996. Reg. X, 12 CFR Part 224 ... Borrowers of Securities Credit ..................................................................................... 1st Half 1996. Reg. CC, 12 CFR Part 229 Availability of Funds and Collection of C hecks.......................................................... 1st Half 1996. SR Letters (126) ................. SR Letters on Securities Activities and SR Letters That Are Potentially Obsolete Membership of State Banking Institutions in the Federal Reserve System .......... 2nd Half 1996. Reg. H, 12 CFR Part 208, All Provisions. Reg. H, Reg. Y, Appen Capital Adequacy Guidelines 2nd Half 1996. dices. Reg. K, 12 CFR Part 211, International Banking Operations (Overall Comprehensive Review) 2nd Half 1996. All Provisions. Reg. B, 12 CFR Part 202 ... Equal Credit Opportunity .................................................................................................................... 2nd Half 1996. Reg. C, 12 CFR Part 203 ... Home Mortgage Disclosure................................................................................................................ 2nd Half 1996. SR Letters (117) ................. SR Letters on Foreign Supervision, Foreign and Domestic Applications Processing, Enforce 2nd Half 1996. ment Activities, Trust Activities, Real Estate Lending Standards, Appraisal Standards, and Accounting Issues. Reg. Z, 12 CFR Part 226 ... Truth in Lending .................................................................................................................................. 1st Half 1997. SR Letters (62) .................... SR Letters on Supervisory Examinations and Prompt Corrective A ction.................................... 1st Half 1997. Reg. DD, 12 CFR Part 230 Truth in Savings .................................................................................................................................. 2nd Half 1998. 1Target Review Dates: Generally, target range to seek public comment. A review of the Board’s SR Letters is currently in process and the tar get ranges for SR Letters reflect those times by which staff expects to complete the reviews. By order of the Board o f Governors o f the Federal Reserve System , O ctober 10, 1995. W illiafn W. Wiles, S ecretary o f the Board. [FR Doc. 9 5 -2 5 4 0 3 Filed 1 0 - 1 3 -9 5 ; 8:45 am] B IL L IN G C O D E 6 2 1 0 -0 1 -P
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