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IbbSG)FEDERAL RESERVE SYSTEM
Semiannual Regulatory Flexibility Agenda
October 1, 1993 - April 1, 1994
B O A R D O F G O V E R N O R S ’ SEM IA N N U A L
R E G U L A T O R Y F L E X IB IL IT Y A G EN D A
The Semiannual Regulatory Flexibility Agenda provides information on those regulatory matters that
the Board now has under consideration or anticipates considering over the next six months. It is divided into
three parts: (1) regulatory matters that the Board may consider for public comment during the next six months;
(2) matters that have been proposed and are under consideration; and (3) regulatory matters that the Board has
completed or is not expected to consider further.
The Agenda is published twice a year in the Federal Register. Comments regarding any of the Agenda
items should be submitted directly to the Board of Governors.
Circulars Division
F E D E R A L R E S E R V E BANK O F N EW Y O R K
September 1993
August 27, 1993
FEDERAL RESERVE SYSTEM
12 CFR Chap. II
Notice of Semiannual Regulatory Flexibility Agenda
AGENCY:
Board of Governors of the Federal Reserve System.
ACTION:
Semiannual agenda.
SUMMARY:
The Board is issuing this Agenda under the Regulatory
Flexibility Act and the Board's Statement of Policy Regarding
Expanded Rulemaking Procedures.
The Board anticipates having
under consideration regulatory matters as indicated below during
the period October 1, 1993 through April 1, 1994.
The next
Semiannual Agenda will be published in April 1994.
DATES:
Comments about the form or content of the Agenda may be
submitted any time during the next six months.
ADDRESSES:
Comments should be addressed to William W. Wiles,
Secretary of the Board, Board of Governors of the Federal Reserve
System, Washington, DC
20551.
FOR FURTHER INFORMATION CONTACT:
A staff contact for each item
is indicated with the regulatory description below.
SUPPLEMENTARY INFORMATION:
The Board is publishing its October
1993 Agenda as part of the October 1993 Unified Agenda of Federal
Regulations, which is coordinated by the Office of Management and
Budget under Executive Order 12291.
Participation by the Board
in the Unified Agenda is on a voluntary basis.
The Board's Agenda is divided into three sections.
The
first, Proposed Rule Stage, reports on matters the Board may
consider for public comment during the next six months..
The
second section, Final Rule Stage, reports on matters that have
been proposed and are under Board consideration.
A third
section, Completed Actions, reports on regulatory matters the
Board has completed or is not expected to consider further.
A dot (•) preceding an entry indicates a new matter that
was not a part of the Board's previous Agenda, and which the
Board has not completed.
(Signed) Barbara R. Lowrey
Barbara R. Lowrey,
Associate Secretary of the Board.
-2-
Section 1
Proposed Rule Stage
-3-
1.
TITLE:
Regulation: C - Home Mortgage Disclosure
LEGAL AUTHORITY:
12 USC 2804
CFR CITATION:
12 CFR 203
ABSTRACT:
Regulation C implements the Home Mortgage Disclosure Act, which
requires certain lenders to report information in connection with
applications they receive for mortgage and other housing-related
loans. One piece of data reported is the race or national origin
of the applicant, according to certain categories specified in
the regulation. The categories in Regulation C differ somewhat
from those used by the U.S. Office of Management and Budget and
other federal entities. Lenders submit the data to the federal
banking regulators and, in the case of mortgage bankers, the U.S.
Department of Housing and Urban Development. During the next six
months the Board may consider whether to issue for public comment
amendments to Regulation C that conform the racial categories to
the federal standard.
The Board also may consider whether to propose technical
revisions to the instructions that Regulation C provides to
lenders for completing reporting form (HMDA-LAR), in order to
facilitate the processing of the data by the Federal Financial
Institutions Examination Council.
The revisions, if proposed and adopted, would be expected to have
an economic impact on some portion of small lenders. (Only
lenders with assets under $10 million or that make fewer than 100
home purchase loans and mortgage refinancings are exempt from the
reporting requirements of Regulation C.)
TIMETABLE:
ACTION
Board is expected to consider
requesting comment by
DATE
04/00/94
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Yes
AGENCY CONTACT:
Leonard Chanin
Managing Counsel
Division of Consumer and Community Affairs
202-452-3667
4
FR CITE
2.
TITLES
Regulation: E - Electronic Fund Transfers
LEGAL AUTHORITY:
15 USC 1693 et seq "Electronic Fund Transfer Act”
CFR CITATION:
12 CFR 205
ABSTRACT:
The Board is conducting a review of Regulation E, which
implements the Electronic Fund Transfer Act, and establishes the
basic rights, liabilities, and responsibilities of consumers who
use electronic fund transfer services and of financial
institutions that offer these services (whether or not these
institutions hold the consumer's account). The review will
consider whether any provisions of the regulation are in need of
updating, and whether any substantive changes are necessary
because of technological and other developments. The Board will
also consider whether to make any legislative recommendations for
statutory changes. The Board's consideration of whether to
propose special rules to govern the electronic delivery of
government benefits is addressed in a separate entry on
Regulation E.
Public comment will be requested on any regulatory proposals that
may be developed following the review. It is not anticipated that
the revisions would have a significant economic impact on a
substantial number of small banks.
TIMETABLE:
ACTION
Board may consider revisions by
DATE
11/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Dolores S. Smith
Associate Director
Division of Consumer and Community Affairs
202 452-2412
RIN: 7100-AA77
-5-
FR CITE
TITLE:
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Bank Holding
Companies and Change in Bank Control
LEGAL AUTHORITY:
12 USC 1831m
CFR CITATION:
12 CFR 208
12 CFR 225
ABSTRACT:
During 1992, the Board's staff consulted with the other federal
banking agencies regarding the implementation of section 112, the
bank auditing requirements, of the Federal Deposit Insurance
Corporation Improvement Act of 1991. The section includes
requirements for insured commercial banks to receive audits of
their annual reports by independent public accountants,
requirements for banks and their auditors to report certain
information to the Board, and requirements for independent audit
committees for banks. In some cases, these requirements can be
satisfied by comparable arrangements at the bank holding company
level. The Act generally exempts insured depository institutions
from these requirements when their total assets are less than
$150 million, unless a higher threshold is chosen by the Federal
Deposit Insurance Corporation (FDIC).
The FDIC has primary responsibility for implementing this mandate
through regulations, and it issued a draft regulation for comment
last year. The FDIC finalized its regulation in May 1993, which
will apply to all FDIC-insured banks and thrifts.
The Board has joint rulemaking authority with the other banking
agencies regarding the enforcement provisions of section 112. It
is expected that the Board and the other agencies will request
public comment by year-end on proposed regulations on these
enforcement matters and on certain amendments to Regulations H
and Y to address the FDIC implementing rule and guidelines.
TIMETABLE:
ACTION
Board may consider amendments to
Regulations H and Y by
DATE
12/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Gerald A. Edwards, Jr.
Assistant Director
Division of Banking Supervision and Regulation
202 452-2741
RIN: 7100-AB39
-6-
FR CITE
TITLE:
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Bank Holding
Companies and Change in Bank Control
LEGAL AUTHORITY:
12 USC 1831n
12 USC 1833d
CFR CITATION:
12 CFR 208
12 CFR 225
ABSTRACT:
During 1992, the Board's staff consulted with the other Federal
banking agencies regarding the implementation of section 121, the
bank accounting requirements, of the Federal Deposit Insurance
Corporation Improvement Act of 1991. These requirements include
the implementation of disclosures of the fair market value of
assets, liabilities, and certain projects, which may result in
the revision of reporting requirements for banks and bank holding
companies. The accounting provisions of the Act do not include
exemptions for small institutions. Thus, any changes to
regulations and reporting requirements would likely affect
smaller state member banks.
The Federal Financial Institutions Examination Council has
requested public comment on proposed reporting requirements and
the comment period expired on June 14, 1993. By the end of the
year the Board is expected to consider requesting comment on
certain changes to its regulations in order to implement section
121 .
TIMETABLE:
ACTION
Board may consider amendments to
DATE
12/00/93
Regulations H and Y by
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Yes
AGENCY CONTACT:
Gerald A. Edwards, Jr.
Assistant Director
Division of Banking Supervision and Regulation
202 452-2741
RIN: 7100-AB41
-7 -
FR CITE
5.
TITLE:
Regulation: J - Collection of Checks and Other Items by Federal
Reserve Banks and Funds Transfers Through Fedwire
LEGAL
12
12
12
12
12
12
12
AUTHORITY:
USC 248 (i)
USC 248 (j)
USC 248 (O)
USC 342
USC 360
USC 464
USC 4001 to 4010
CFR CITATION:
12 CFR 210
ABSTRACT:
During the next two months, the Board will consider issuing for
public comment proposed amendments to Regulation J to conform the
warranties and various other provisions of Regulation J to recent
amendments to Regulation CC (Availability of Funds and Collection
of Checks) and the Uniform Commercial Code.
It is not expected that the proposed amendments would impose any
substantial economic burden on small entities.
TIMETABLE:
ACTION
Board is expected to request comment by
DATE
10/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Stephanie Martin
Senior Attorney
Legal Division
202 452-3198
FR CITE
6.
TITLE:
Regulation: K - International Banking Operations
LEGAL AUTHORITY:
12 USC 3105
CFR CITATION:
12 CFR 211
ABSTRACT:
Within the next four months, the Board, in consultation with the
Secretary of the Treasury, will consider action to implement a
portion of section 202(a) of the Federal Deposit Insurance
Corporation Improvement Act of 1991 with respect to the criteria
to be used in evaluating the operations of foreign banks that the
Board has determined are not subject to comprehensive supervision
or regulation on a consolidated basis. It is undetermined what
economic impact this proposal would have on small institutions.
TIMETABLE:
ACTION
Board will consider requesting
comment by
DATE
12/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Undetermined
AGENCY CONTACT:
Ann Misback
Senior Attorney
Legal Division
202 452-3788
RIN:
7100-AB58
-9-
FR CITE
7.
TITLES
Regulation: K - International Banking Operations
LEGAL AUTHORITY:
PL 102-242
CFR CITATIONS
12 CFR 211, subpart B
ABSTRACT:
Within the next two months, the Board will consider action to
implement a portion of section 203(a) of the Foreign Bank
Supervision Enhancement Act of 1991 that provides that the cost
of examinations of branches, agencies, and representative offices
of foreign banks in the United States shall be assessed against
the foreign bank or its parent. Public comment will be sought on
proposed methodology for assessing examination costs. Foreign
banks with branches, agencies, or representative offices in the
United States will be affected by the proposal.
The proposal is not expected to have a significant economic
impact on a substantial number of small business entities.
TIMETABLE:
ACTION
Board will consider requesting comment by
DATE
10/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Sandy Richardson
Senior Attorney
Legal Division
202 452-6406
-10-
FR CITE
TITLE:
Regulation: T - Credit by Brokers and Dealers (Docket Number:
R-0772)
LEGAL
15
15
15
AUTHORITY:
USC 78g Securities Exchange Act of 1934, as
USC 78h Securities Exchange Act of 1934, as
USC 78w Securities Exchange Act of 1934, as
amended
amended
amended
CFR CITATION:
12 CFR 220
ABSTRACT:
The Board is conducting a review of Regulation T, which regulates
extensions of credit by and to brokers and dealers. The review
will consider whether any provisions of the regulation are in
need of updating and whether any substantive changes are
necessary because of developments in the securities markets,
including the development of new products and services and the
expansion of global markets. In August 1992, the Board approved a
general request for comments to aid in its review (57 FR 37109,
August 18, 1992). Following evaluation of the public comments,
the Board will again seek comment on any regulatory proposals
that may be developed. It is not anticipated that the revisions
would have a significant economic impact on the overall lending
activities of a substantial number of small brokerage firms.
TIMETABLE:
ACTION
Board approved requesting comment
Further Board action expected by
DATE
08/18/92
10/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Laura Homer
Assistant Director
Division of Banking Supervision and Regulation
202 452-2781
RIN: 7100-AB28
t
-11-
FR CITE
57 FR 37109
9.
TITLE:
Regulation: U - Credit by Banks for the Purpose of Purchasing or
Carrying Margin Stocks
LEGAL
15
15
15
AUTHORITY:
USC 78g Securities Exchange Act of 1934, as
USC 78h Securities Exchange Act of 1934, as
USC 78w Securities Exchange Act of 1934, as
amended
amended
amended
CFR CITATION:
12 CFR 221
ABSTRACT:
During the first half of 1994, the Board plans to begin a review
of Regulation U, which generally regulates bank extensions of
credit that are secured by publicly-traded stock. The review will
consider whether any provisions of the regulation are in need of
updating and whether any substantive changes are necessary
because of developments in the banking and securities markets.
Public comment will be requested for any regulatory proposals
that may be developed following the review. It is not anticipated
that the revisions will have a significant economic impact on the
overall lending activities of a substantial number of small
banks.
TIMETABLE:
ACTION
Board may issue advanced notice of
proposed rulemaking and request for
comment by
DATE
03/00/94
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Laura Homer
Assistant Director
Division of Banking Supervision and Regulation
202 452-2781
-12-
FR CITE
10.
TITLES
Regulation: Y - Bank Holding Companies and Change in Bank Control
LEGAL AUTHORITY:
12 USC 1834a
12 USC 1834b
CFR CITATION:
12 CFR 225
ABSTRACT:
Sections 233 and 234 of the Federal Deposit Insurance Corporation
Improvement Act of 1991 require the Board and other regulatory
agencies to become involved in an effort to get banks to
participate in certain types of lending activities in designated
distressed communities. Banks that do the appropriate type of
lending in the appropriate distressed communities" will receive
assessment credits for their FDIC insurance premiums. The law
requires the Board to receive notice of the banks* intent to
involve themselves in these activities, to assist the banks to
define and locate the appropriate communities, and to define
certain terms by regulation. To accomplish the mandates of the
statute, it may be necessary to amend Regulation Y for purposes
of receiving notice of the banks' and holding companies' intent
to form the types of entities discussed in the law and to do the
type of lending intended by the law. It may also be necessary to
amend the regulation to provide the definitions of "nonprofit
organization" and "small business" called for by the statute. It
is not expected that any proposed regulation would have a
significant economic impact on small institutions.
These provisions only take effect if, and when, Congress
appropriates funds to cover the impact they may have on the Bank
Insurance Fund. Consequently, the timing is somewhat uncertain.
TIMETABLE:
ACTION
Date of action undetermined
DATE
00/00/00
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Glenn E. Loney
Assistant Director
Division of Consumer and Community Affairs
202 452-3585
RIN: 7100-AB29
-13-
FR CITE
11.
TITLE:
Lifeline Accounts
LEGAL AUTHORITY:
12 USC 1817
12 USC 1834
CFR CITATION:
00 CFR None
ABSTRACT:
Section 232 of the Federal Deposit Insurance Corporation
Improvement Act of 1991 requires the Board with the FDIC to
establish minimum requirements for "lifeline” transaction
accounts. An insured depository institution that chooses to offer
accounts that meet these requirements will be assessed deposit
insurance premiums on those deposits at a rate of 1/2 the maximum
assessment rate. The Act sets forth factors that the Board and
the FDIC must consider in setting the account requirements, such
as whether the amount of the fee, if any, that is charged for
routine transactions does not exceed a minimal level.
It is expected that the Board will seek public comment within the
next two months on a proposal to implement section 232.
It is not anticipated that implementation of the law, due to its
voluntary character, will have a significant impact on a
substantial number of small institutions.
TIMETABLE:
ACTION
Board action expected by
DATE
10/00/93
EFFECTS ON SHALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Michael S. Bylsma
Senior Attorney
Division of Consumer and Community Affairs
202 452-3667
RIN: 7100-AB40
-14-
FR CITE
Section 2
Final Rule Stage
-15-
12.
TITLE:
Regulation: A - Extensions of Credit by Federal Reserve Banks
(Docket Number: R-0808)
LEGAL AUTHORITY:
12 USC 347
12 USC 248
CFR CITATION:
12 CFR 201
ABSTRACT:
Section 142 of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (Federal Reserve Discount Window
Advances) modifies the Federal Reserve Act by placing limitations
on Federal Reserve Bank liquidity lending to undercapitalized and
critically undercapitalized depository institutions. In August
1993, the Board approved issuing for public comment revisions to
Regulation A to reflect these changes (58 FR 45851, August 31,
1993) . The regulations will apply to extensions of credit to all
depository institutions (both large and small). The regulation
will limit credit to undercapitalized and critically
undercapitalized depository institutions, including small
depository institutions.
Following review of the public comments, the Board is expected to
take further action by December 19, 1993.
TIMETABLE:
ACTION
Board approved requesting comment
Further Board action by
DATE
08/31/93
12/19/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Yes
AGENCY CONTACT:
Manley Williams-Stander
Legal Assistant
Legal Division
202 736-5565
RIN: 7100-AB56
-16-
FR CITE
58 FR 45851
13.
TITLES
Regulation: B - Equal Credit Opportunity (Docket Number: R-0782)
LEGAL AUTHORITY:
15 USC 1691b
CFR CITATION:
12 CFR 202
ABSTRACT:
Section 223 of the Federal Deposit Insurance Corporation
Improvement Act of 1991 amended the Equal Credit Opportunity Act
(ECOA) to require that upon written request a creditor must
provide a credit applicant with a copy of the appraisal report
used in connection with an application for a loan secured by a
lien on residential real property. In addition, the enforcement
provisions of the ECOA are amended to require the federal
financial supervisory agencies responsible for enforcing the ECOA
to refer certain matters involving credit discrimination to the
Department of Justice or the Department of Housing and Urban
Development.
In December 1992, the Board issued for public comment proposed
revisions to Regulation B that would implement the ECOA
amendments (57 FR 57697, December 7, 1992). The proposal is not
expected to have a substantial economic impact on small banks.
Following review of the public comments, the Board is expected to
take further action within the next two months.
TIMETABLE:
ACTION
Board requested comment
Further Board action by
DATE
12/07/92
10/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Leonard Chanin
Managing Counsel
Division of Consumer and Community Affairs
202 452-3667
RIN: 7100-AB34
i
-17-
FR CITE
57 FR 57697
14.
TITLES
Regulation: E - Electronic Fund Transfers (Docket Number: R-0796)
LEGAL AUTHORITY:
15 USC 1693 et seq. "Electronic Fund Transfer Act"
CFR CITATION:
12 CFR 205
ABSTRACT:
Regulation E implements the Electronic Fund Transfer Act, which
establishes the basic rights, liabilities, and responsibilities
of consumers who use electronic fund transfer services and of the
institutions (including traditional depository institutions and
other entities, whether or not they hold the consumer's account)
that offer these services. In February 1993, the Board issued for
public comment a proposal that would apply Regulation E to
electronic benefit transfer (EBT) programs established by
federal, state, and local agencies to automate the delivery of
government benefits to recipients (58 8714, February 17, 1993).
EBT programs involve such benefits as Aid to Families with
Dependent Children, food stamps, and Supplemental Security
Income. The proposal sets forth limited modifications in regard
to period account statements, which would not be required if
other conditions were met. (The Board's consideration of other
revisions to the existing regulation, under its Regulatory
Improvement Program, is discussed in RIN: 7100-AA77.)
This proposal would affect primarily government agencies that
administer EBT programs, and would affect only indirectly most
depository institutions and other private-sector entities.- It is
not anticipated that the proposed revisions would have a
significant economic impact on small banks. Following review of
the public comments, the Board is expected to take further action
during the next three months.
TIMETABLE:
ACTION
Board requested public comment
Further Board action by
DATE
02/17/93
11/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Dolores S. Smith
Associate Director
Division of Consumer and Community Affairs
202 451-2412
RIN: 7100-AB47
-18-
FR CITE
58 FR 8714
15.
TITLE:
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Bank Holding
Companies and Change in Bank Control (Docket Number: R-0803)
LEGAL AUTHORITY:
12 USC 3331 et seq
CFR CITATION:
12 CFR 225, Subpart G
ABSTRACT:
In June 1993, the Board and other federal financial regulatory
agencies issued for public comment proposed amendments to their
real estate appraisal regulations that would (1) increase the
threshold level at or below which appraisals are not required
from $100,000 to $250,000; (2) expand and clarify other
existing exemptions to the appraisal regulations; and (3)
identify additional exemptions. In addition, the proposal would
amend or delete existing requirements governing appraisal
standards and appraiser independence (58 FR 31878, June 4,
1993).
Previously, in November and December 1990, the Board had issued
for public comment proposed amendments to the appraisal
regulation to lower the threshold to conform to the level at
that time of the other agencies (55 FR 49057, November 26,
1990) and to adopt a final rule requiring compliance with the
Uniform Standards of Professional Appraisal Practice (USPAP)
(55 FR 53609, December 31, 1990; RIN:7100-AB27). As a result of
the other agencies conforming their thresholds to the Board's
level, the Board took no further action on the November 1990
proposed amendments; the Board will take final action on the
December 1990 USPAP proposal when the current proposal is
finalized.
The current proposal is not expected to have a significant
economic impact on a substantial number of small entities and,
if adopted, is expected to result in reduced regulatory burden
for some small entities. Following review of the public
comments and coordination with the other agencies, the Board is
expected to take further action within the next two months.
TIMETABLE:
ACTION
Board requested comment
Board requested comment on
a revised proposal
Further Board action expected by
SMALL ENTITIES AFFECTED: Yes
AGENCY CONTACT:
Christopher J. Bellini
Attorney
Legal Division
202 452-3269
RIN: 7100-AB20
-19-
DATE
11/26/90
FR CITE
55 FR 49057
06/04/93
10/01/93
58 FR 31878
16.
TITLE:
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Bank Holding
Companies and Change in Bank Control (Docket Number: R-0756)
LEGAL AUTHORITY:
PL 102-233, Sec 618(b) "Resolution Trust Corporation Refinancing,
Restructuring, and Improvement Act of 1991”
CFR CITATION:
12 CFR 208, Appendix A
12 CFR 225, Appendix A
ABSTRACT:
In April 1992, the Board issued for public comment proposed
modifications to its risk-based capital guidelines (57 FR 14362,
April 20, 1992). The first proposed modification will implement
section 618(b) of the RTC Refunding Act of 1991 requiring the
Federal banking agencies to lower the risk weight for multifamily
housing loans from 100 percent to 50 percent. The second proposed
modification will lower the risk weight for certain
collateralized transactions from 20 percent to 0 percent in order
to better reflect the risk of such transactions. The latter
proposal would place U.S. banking organizations on a more equal
footing with foreign banks subject to the Basle Accord with
regard to capital requirements for certain low-risk
collateralized transactions.
It is not anticipated that the proposed revisions will have a
significant impact on a substantial number of small institutions.
A lower risk category for multifamily housing loans and certain
collateralized transactions may help some small organizations
with their capital ratios, but the impact will be small. Action
on the implementation of section 618(b) is expected within the
next two months.
In December 1992, following review of the public comments, the
Board adopted the modification regarding certain collateralized
transactions in substantially the form proposed (57 FR 62180,
December 30, 1992).
TIMETABLE:
ACTION
Board requested comment
Board adopted one of two modifications
Further Board action by
DATE
04/20/92
12/30/92
10/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Robert Motyka
Senior Financial Analyst
Division of Banking Supervision and Regulation
202 452-3621
RIN: 7100-AB53
-20-
FR CITE
57 FR 14362
57 FR 62180
17.
TITLE:
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Bank Holding
Companies and Change in Bank Control (Docket Number: R-0773)
LEGAL AUTHORITY:
12 USC 248(i)
12 USC 1844(b)
CFR CITATION:
12 CFR Part 208
12 CFR Part 225
12 CFR Part 265
ABSTRACT:
In August 1992, the Board approved several proposals to reduce
burden that is associated with the process for seeking Board
approval for a variety of transactions (57 FR 39641, September 1,
1992) . In particular, the Board agreed to (1) establish certain
procedures to limit extension of the pre-acceptance period for
applications; (2) permit prospective applicants the opportunity
to submit a pre-filing notice of intent to file an application;
(3) eliminate the stock redemption notice requirement for bank
holding companies that are and would remain well capitalized on a
consolidated basis and in generally satisfactory condition
following the redemption; (4) expand the authority of Reserve
Banks to process all delegable applications without Board staff
review; (5) modify the Board*s delegation rules that pertain to
competition and market concentration; (6) reduce redundant
post-acceptance processing of Board action cases; and (7) ;
increase monitoring of cases that require extended processing.
In addition, the Board determined to invite comment on a proposal
to establish a general consent procedure for investments in bank
premises by state member banks. Section 24A of the Federal
Reserve Act requires state member banks to obtain the Board*s
approval prior to making investments in bank premises that would
result in the bank's aggregate level of investments in bank
premises to exceed the bank's capital stock account.
Finally, the Board determined to invite public comment on any
other ways in which the burdens on applicants under the current
regulation may be reduced in a manner consistent with the Board's
responsibilities under applicable law.
These proposals are part of the Board's ongoing efforts to reduce
regulatory burdens on financial institutions regulated by the
Board and should not have a significant economic impact on small
entities. Following review of the public comments, the Board is
expected to take further action by year-end.
TIMETABLE:
ACTION
Board requested public comment
Further Board action by
DATE
09/01/92
12/00/93
EFFECTS ON SMALL BUSINESS AND 03HER ENTITIES: None
-21-
FR CITE
57 FR 39641
TITLE:
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Bank Holding
Companies and Change in Bank Control
AGENCY CONTACT:
Patrick J. McDivitt
Attorney
Legal Division
202 452-3818
RIN: 7100-AB55
-22-
18.
TITLE:
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Bank Holding
Companies and Change in Bank Control (Docket Number: R-0795)
LEGAL AUTHORITY:
12 USC 1844(b)
12 USC 3909
CFR CITATION:
12 CFR 208
12 CFR 225
ABSTRACT:
In February 1993, the Board issued for public comment a proposed
limitation on deferred tax assets for risk-based and leverage
capital purposes (58 FR 8007, February 11, 1993). This proposal
is in response to the adoption, by the Financial Accounting
Standards Board, of Statement No. 109 (FASB 109) which provides
new accounting guidance on deferred tax assets. This proposal
will affect the treatment of these assets for capital purposes
for all state member banks and bank holding companies regardless
of size. However, it is not expected that the proposal will have
a significant economic impact on a substantial number of small
banking organizations, as the vast majority of small banking
organizations currently have very limited amounts of net deferred
tax assets as a component of their capital structures.
Following review of the public comments and comments received by
the other federal banking agencies on their proposals, the Board
is expected to take further action by year-end.
TIMETABLE:
ACTION
Board requested public comment
Further Board action by
DATE
02/11/93
12/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Charles Holm
Project Manager
Division of Banking Supervision and Regulation
202 452-3502
RIN: 7100-AB57
FR CITE
58 FR 8007
19.
TITLE:
Regulation: K - International Baulking Operations (Docket Number:
R-0754)
LEGAL AUTHORITY:
12 USC 3105
12 USC 3108
CFR CITATION:
12 CFR 211
ABSTRACT:
In January 1993, following review of the public comments, the
Board issued a final rule implementing sections 202-204 and 206
of Title II of the Federal Deposit Insurance Corporation
Improvement Act of 1991 which, among other things, require prior
approval of the Board for the establishment of branches,
agencies, commercial lending companies and representative offices
by foreign banks in the United States (58 FR 6348, January 28,
1993). It is not expected that the final rule will have a
significant economic impact on small institutions.
The Board also requested additional public comment on those
portions of the final rule that deal with representative offices
of foreign banks. Comments were sought on the definition of
representative office and on the standards that should govern the
activities that a representative office may conduct. Following
review of the public comments, the Board is expected to take
further action within the next three months.
DATE
04/15/92
01/28/93
TIMETABLE:
ACTION
Board issued an interim rule
Board issued a final rule and
request for comment
Further Board action by
11/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Ann Misback
Senior Attorney
Legal Division
202 452-3788
RIN: 7100-AB31
-24-
FR CITE
57 FR 12992
58 FR 6348
20.
TITLES
Regulation: K - International Banking Operations (Docket Number:
R-0793)
LEGAL AUTHORITY:
12 USC 3105
12 USC 3108
CFR CITATIONS
12 CFR 211
ABSTRACT:
In January 1993, the Board issued for public comment proposed
amendments to Regulation K implementing section 202(a) of the
Federal Deposit Insurance Corporation Improvement Act of 1991
(FDICIA) with respect to the limitation on the powers of state
branches and agencies of foreign banks (58 FR 513, January 6,
1993). Following review of the public comments and in
consultation with the FDIC, the Board is expected to take further
action by year-end. It is not expected that a final rule would
have a significant economic impact on small institutions.
TIMETABLE:
ACTION
Board requested public comment
Further Board action by
DATE
01/06/93
12/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Ann Misback
Senior Attorney
Legal Division
202 452-3788
RIN: 7100-AB46
-25-
FR CITE
58 FR 513
#
21.
TITLE:
Regulation: O - Loans to Executive Officers, Directors, and
Principal Shareholders of Member Banks (Docket Number: R-0800)
LEGAL AUTHORITY:
PL 102-242, sec 306(d)
CFR CITATION:
12 CFR 215
ABSTRACT:
In May 1992, the Board amended Regulation 0 to implement
provisions of the Federal Deposit Insurance Corporation Act to
permit smaller banks (deposits under $100 million) to increase
their aggregate insider lending limit from 100 percent to 200
percent of unimpaired capital and unimpaired surplus, for the one
year period ending May 18, 1993. In May 1993, the Board approved
extending the provision for six months, through November 18,
1993, and requesting additional comments on making the provision
permanent, modifying or permitting it to expire.
Following review of the public comments, the Board is expected to
take further action by November 18, 1993. Although the rulemaking
will apply to all banks with deposits under $100 million, it
should not have a significant economic impact on smaller banks.
TIMETABLE:
ACTION
Board extended provisions of
Regulation 0
Further Board action by
DATE
05/14/93
11/18/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Yes
AGENCY CONTACT:
Gordon L. Miller
Attorney
Legal Division
202 452-2534
-26-
FR CITE
58 FR 28492
22.
TITLE:
Regulation: O - Loans to Executive Officers, Directors, and
Principal Shareholders of Member Banks (Docket Number: R-0809)
LEGAL AUTHORITY:
PL 102-242, sec 306 (2)
CFR CITATION:
12 CFR 215
ABSTRACT:
The Housing and Community Development Act of 1992 authorized the
Board to adopt exceptions to the definition of "extension of
credit" in section 22(h) of the Federal Reserve Act for
transactions that pose minimal risk to the lending bank. On
August 18, 1993, the Board approved requesting public comment on
proposed amendments to Regulation O under this new authority
(Federal Register cite unavailable). The proposed amendments
would: (1) create an exception to the aggregate lending limit for
the purchase of certain consumer installment paper; (2) modify
the definition of "extension of credit" by (a) clarifying that
the provision defining any transaction that has a "tangible
economic benefit" to an insider as an extension of credit to the
insider does not cover bona fide extensions of credit to third
parties to finance acquisitions of property, goods, or services
from insiders, (b) excluding from the definition the discount of
obligations sold by an insider to the bank without recourse, and
(c) increasing from $5,000 to $15,000 the threshold for
considering credit card plan debt to be an extension of credit.
The proposed amendments would also modify the recordkeeping
requirements of Regulation O to allow banks greater latitude in
devising procedures to ensure compliance with the regulation.
Because the proposal will reduce regulatory and recordkeeping
burdens on all banks, it is not expected to have an adverse
economic impact on small banks. Following review of the public
comments, the Board is expected to take further action by
year-end.
TIMETABLE:
ACTION
Board approved requesting public comment
on proposed amendments
Further Board action by
DATE
08/18/93
12/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Yes
AGENCY CONTACT:
Gordon L. Miller
Attorney
Legal Division
202 452-2534
-27-
FR CITE
23.
TITLE:
Regulation: S - Reimbursement for Providing Financial Records;
Recordkeeping Requirements for Certain Financial Records (Docket
Number: R-0807)
LEGAL AUTHORITY:
PL 102-550
CFR CITATION:
12 CFR 219, Subpart B
ABSTRACT:
On August 18, 1993, the Board approved issuing for public comment
a proposed joint regulation, promulgated by the Board and the
Treasury Department pursuant to section 21(b) of the Federal
Deposit Insurance Act, as amended by the Annunzio-Wylie AntiMoney Laundering Act of 1992 (58 FR 46024, August 31, 1993). The
proposed regulation would establish recordkeeping requirements
for wire transfers by all financial institutions— including
nonbank financial institutions, such as broker/dealers in
securities, check-cashing businesses, money transmitting
businesses, and businesses that issue or redeem money orders or
travelers1 checks.
This proposal may have a significant economic impact on a
substantial number of small businesses that provide check-cashing
services, money-transmitting services, and services concerning
the issuance or redemption of money orders and travelers' checks,
because such businesses may not currently collect or maintain the
information required.
Following review of the public comments, the Board is expected to
take further action within the next three months.
TIMETABLE:
ACTION
Board approved requesting comment
Further Board action by
DATE
08/31/93
11/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Yes
AGENCY CONTACT:
Elaine Boutilier
Senior Attorney
Legal Division
202 452-2418
-28-
FR CITE
58 FR 46024
24.
TITLE:
Regulation: Y - Bank Holding Companies and Change in Bank Control
(Docket Number: R-0686)
LEGAL AUTHORITY:
PL 101-73, 103 Stat 183
CFR CITATION:
12 CFR Part 225, Subpart H
ABSTRACT:
In February 1990, the Board approved issuing for public comment a
proposed regulation, which implements section 914 of the
Financial Institutions Reform, Recovery, and Enforcement Act of
1989, requiring banks and bank holding companies to provide
notice to the Federal Reserve System 30 days before adding any
individual to the institution's board of directors or employing
any individual as a senior executive officer under certain
circumstances (55 FR 6787, February 27, 1990). Notice would be
required if the institution is failing to meet minimum capital
standards or is otherwise in a troubled condition, has undergone
a change in control within the past two years, or has received a
bank charter within the past two years. The regulation defines
"senior executive officer," "troubled condition," and "change in
control."
The proposal is not expected to have a significant economic
impact on a substantial number of small business entities. State
member banks and bank holding companies will be affected if they
meet one of the criteria that triggers the notice requirements.
Following review of public comments, the Board is expected to
take further action within the next three months.
TIMETABLE:
ACTION
Board.
approved proposal for comment
Further Board action by
DATE
02/27/90
11/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Robert Frierson
Managing Senior Counsel
Legal Division
202 452-3711
RIN: 7100-AB07
-29-
FR CITE
55 FR 6787
25.
TITLE:
Regulation:
DD - Truth in Savings
LEGAL AUTHORITY:
12 USC 4301 et seq
CPR CITATION:
12 CFR 230
ABSTRACT:
Sections 261-275 of the Federal Deposit Insurance Corporation
Improvement Act of 1991 require depository institutions to
provide a schedule of terms, rates, and fees for deposit accounts
offered by the institution. The law also sets forth rules for
advertisements for deposit accounts.
On July 14, 1993, the Board approved issuing for public comment
proposed amendments to Regulation DD regarding the calculation of
the annual percentage yield (APY) (Federal Register cite
unavailable)• The proposal would require institutions to use a
new formula to calculate the APY for accounts where consumers
receive interest payments (by check or transfer to another
account) more frequently than interest is compounded. The formula
would also be used if interest is not compounded but the consumer
receives interest periodically during the term of the account.
The amendments will apply to both large and small institutions.
The economic impact on small institutions will depend upon the
variety of deposit products offered, the extent of the
disclosures and the options for compliance offered by the final
rule.
Following review of the public comments, the Board is expected to
take further action by year-end.
TIMETABLE:
ACTION
Board approved requesting comment on
Board is expected to take further
action by
DATE
7/14/93
12/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Yes
AGENCY CONTACT:
Leonard Chanin
Managing Counsel
Division of Consumer and Community Affairs
202 452-3667
-30-
FR CITE
26.
TITLE:
Regulation: EE - Netting Eligibility for Financial Institutions
(Docket Number: R-0801)
LEGAL AUTHORITY:
12 USC 4402(1)(B)
12 USC 4402(9)
CFR CITATION:
12 CFR 231
ABSTRACT:
Section 401 et seq of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (FDICIA) contains provisions to validate
netting contracts between and among financial institutions for
the purpose of improving efficiency and reducing systemic risk in
the banking system and financial markets. The FDICIA defines
"financial institution" to include securities brokers or dealers,
depository institutions, futures commission merchants, and any
other institution as determined by the Board, such as
broker-dealer affiliates that engage in netting.
In May 1993, the Board requested public comment on the expansion
of the "financial institution" definition to include entities not
covered by FDICIA (58 FR 29149, May 19, 1993). Small entities
will be affected only to the extent that they engage in netting
activities in the financial markets and would benefit by being
considered financial institutions for purposes of the FDICIA
netting provisions.
Following review of the public comments, the Board is expected to
take further action within the next three months.
TIMETABLE:
ACTION
Board requested comment
Further Board action by
DATE
05/19/93
11/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Yes
AGENCY CONTACT:
Stephanie Martin
Senior Attorney
Legal Division
202 452-3198
RIN: 7100-AB35
-31-
FR CITE
58 FR 29149
27.
TITLE:
Federal Reserve Bank Services (Docket Number: R-0778)
LEGAL
12
12
12
12
12
AUTHORITY:
USC 248(i)
USC 240(j)
USC 248(0)
USC 342
USC 464
CFR CITATION:
00 CFR None
ABSTRACT:
In October 1992, the Board requested comment on a proposal to
change the opening time for the Fedwire funds transfer service
from 8:30 a.m. Eastern Time (ET) to 6:30 a.m. ET (57 FR 47080,
October 14, 1992). The earlier opening time would facilitate
changes to the settlement practices of the futures and options
markets that would reduce risks in those markets, and it would
also permit a reduction in the risk associated with the
settlement of foreign exchange transactions.
The Board also requested comment on whether the Fedwire
securities transfer service should open concurrently with the
funds service.at 6:30 a.m. ET and on the costs and benefits of
extended Fedwire hours for depository institutions, their
customers, and the financial markets.
In July 1993, the Board announced a delay in final action on the
proposal pending a staff study further analyzing the complex
issues raised by commenters (58 FR 40430, July 28, 1993). The
Board is expected to take further action by February 1994.
Small entities should not be affected by this proposal, because
they would be unlikely to choose to open their Fedwire operations
earlier in the morning and would not incur increased costs.
TIMETABLE:
ACTION
Board requested public comment
Board announced delay pending study
Further Board action by
DATE
10/14/92
07/28/93
02/00/94
FR CITE
57 FR 47080
58 FR 40430
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Gayle Brett
Manager
Division of Reserve Bank Operations and Payment Systems
202 452-2934
RIN: 7100-AB61
-32-
# 28.
TITLES
Payments System Risk Reduction Program - Policy Statement
(Docket Number: R-0806)
LEGAL AUTHORITY:
12 USC 221 et seq
CFR CITATIONS
None
ABSTRACT:
The Board's payments system risk policy requires depository
institutions to establish a maximum limit, or net debit cap, on
daylight overdrafts in their Federal Reserve accounts.
Institutions that incur a significant amount of daylight
overdrafts must use a self-assessment process to establish their
caps. On August 4, 1993, the Board approved requesting public
comment on revisions to the self-assessment procedures, as they
are set out in the Board's Guide to the Payments System Risk
Policy, to reduce the burden of conducting a self-assessment and
to expand the assessment to cover operating controls and
contingency procedures (58 FR 44677, August 24, 1993).
This proposal would not have a significant economic impact on
small depository institutions because those institutions
generally do not incur significant daylight overdrafts or perform
self-assessment. Following review of the public comments, the
Board is expected to take further action by year-end.
TIMETABLES
ACTION
DATE
Board approved requesting comment
Further Board action by
FR CITE
08/24/93
01/00/94
58 FR 44677
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Paul Bettge
Manager
Division of Reserve Bank Operations
and Payment Systems
202 452-3174
-33-
29.
TITLES
Proposals to Modify the Payments System Risk Reduction Program
(Docket Number: R-0693)
LEGAL AUTHORITY:
12 USC 221 et seq
CFR CITATIONS
000 CFR None
ABSTRACT:
In May 1990, the Board requested comment on a proposed change to
its policy on payments system risk to assess a penalty fee on the
maximum daily daylight overdraft incurred by certain institutions
without regular discount window access. The Board proposed that
the penalty rate be the same as the current penalty rate for
overnight overdrafts.
On August 11, 1993, following review of the public comments, the
Board approved a structure under which Reserve Banks would assess
a penalty fee for the average daily daylight overdrafts incurred
by institutions without regular discount window access,
specifically bankers' banks that do not maintain reserves, Edge
and agreement corporations, and limited-purpose trust companies
(58 FR 44672, August 24, 1993). The Board determined to seek
further comment on the size of the daylight overdraft penalty
rate. The Board proposes that the rate equal the overnight
penalty rate plus the federal funds rate, adjusted to take
account of the Fedwire operating day.
It is not expected that this action will have a significant
economic impact on a substantial number of small entities. -The
action will affect only a small subset of payments system
participants, who are generally large entities. Following review
of the public comments, the Board is expected to take further
action by year-end.
TIMETABLES
ACTION
Board requested comment
Board adopted proposal in part
requested public comment
Further Board action by
and
DATE
05/31/90
08/24/93
12/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Stephanie Martin
Senior Attorney
Legal Division
202 452-3198
RIN:
7100-AB17
-34-
FR CITE
55 FR 22086
58 FR 44672
30.
TITLES
Risk-Based Capital Standards (Docket Number: R-0764)
LEGAL AUTHORITY:
PL 102-242
CFR CITATION:
12 CFR 208
12 CFR 225
ABSTRACT:
Section 305 of the Federal Deposit Insurance Corporation
Improvement Act of 1991 requires each federal banking agency to
revise its risk-based capital standards for the depository
institutions it regulates in order to ensure that those standards
take adequate account of interest rate risk (IRR), concentration
of credit risk, and the risks of nontraditional activities.
In August 1992, the federal banking agencies issued jointly for
public comment an advanced notice of proposed rulemaking (ANPR)
for each of these risks. The IRR proposal described a supervisory
risk measure, and would have required additional reporting by all
commercial banks and imposed additional capital requirements on
banks identified as having risk beyond a threshold level. For
nontraditional and concentration risk, the ANPR simply requested
comments about how the Board might proceed.
On March 31, 1993, following a review of the comments and after
staff discussions with the other agencies, the Board approved for
comment a notice of proposed rulemaking for IRR. This proposal
would allow institutions to use internal risk models to measure
IRR (if the models are acceptable to examiners) and would (cont)
require additional capital of institutions identified as having
excess IRR. Also, in an effort to reduce the burden on small
institutions, the proposal would exempt an estimated 8,000
institutions from any additional reporting.
The Board also approved for comment proposals regarding
nontraditional and concentration risks that provide bankers and
examiners substantial flexibility to evaluate these risks.
The proposals will be issued jointly for public comment,
following review by the other banking agencies. Following the
public comment period, final action on the proposals is expected
by year-end.
TIMETABLE:
ACTION
Board requested public comment
on an ANPR
Board approved requesting comment on
proposed rulemaking
Final Board action expected by
DATE
08/10/92
03/31/93
12/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Yes
-35-
FR CITE
57 FR 35507
TITLES
Risk-Based Capital Standards (Docket Number: R-0764)
AGENCY CONTACT:
James Embersit
Manager
Division of Banking Supervision and Regulation
202 452-5249
RINS 7100-AB50
-36-
31.
TITLES
Standards for Safety and Soundness (Docket Number: R-0766)
LEGAL AUTHORITY:
PL 102-242
CFR CITATIONS
12 CFR Chapter II
ABSTRACT:
Section 132 of the Federal Deposit Insurance Corporation
Improvement Act of 1991 directs each Federal banking agency to
prescribe standards regarding operations, management, asset
quality, earnings, stock valuation (to the extent feasible), and
employee compensation. In July 1992, the Board requested public
comment on an interagency advance notice of proposed rulemaking
(57 FR 31336, July 15, 1992). After considering the public's
comments, a notice of proposed rulemaking was developed that
contains broad principle-based standards that leave the method
for meeting such standards largely in the province of management.
The proposed standards are specific enough to identify emerging
safety and soundness problems and require submission of a
compliance plan before those problems become serious; however,
the standards do not specify each operational and managerial
procedure an institution must have in place. The Board believes
that well-managed institutions generally should not find it
necessary to amend their operations in order to comply with the
operational and managerial standards.
A draft notice of proposed rulemaking was approved by the Board
on April 21, 1993, and a similar version was approved by the
Federal Deposit Insurance Corporation in early June. An
interagency notice is expected to be published in the Federal
Register after the Office of Thrift Supervision and the Office of
the Comptroller of the Currency have completed their approval
processes. The proposal is not expected to impose a significant
economic hardship on small institutions.
Following review of the public comments, the Board is expected to
take further action by year-end.
TIMETABLES
ACTION
Board requested public comment
Board approved a notice of proposed
rulemaking
Further Board action by
DATE
07/15/92
04/21/93
12/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Roger T. Cole
Deputy Associate Director
Division of Banking Supervision and Regulation
202 452-2618
RIN: 7100-AB52
-37-
FR CITE
57 FR 31336
Section 3
Completed Section
-38-
32.
TITLES
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve; Reg.: K - International Banking Operations; and
Reg.: Y - Bank Holding Companies (Docket Number: R-0792)
LEGAL AUTHORITY:
12 USC 248(a)(1)
1 2 USC 6 2 5
1 2 USC 1 8 1 8
1 2 USC 1 8 4 4 ( C )
12 USC 3105(b)(2)
12 USC 3106(a)
12 USC 3108(a)
12 USC 3401 to 3422
CFR CITATION:
12 CFR 208.20
12 CFR 211.8
12 CFR 225.4(g)
ABSTRACT:
In January 1993, an interagency task force of the federal
financial institutions regulatory agencies designed a uniform
interagency criminal referral form to facilitate compliance with
financial institutions' criminal activity reporting requirements,
to enhance law enforcement agencies' ability to investigate and
prosecute the matters reported in the criminal referrals, and to
develop and maintain a new interagency database. This uniform
criminal referral form will replace the various criminal referral
forms that are currently being used by financial institutions.
The purpose of the rule, which was issued for public comment, is
to create a uniform, criminal referral reporting requirement for
all domestic and foreign financial institutions operating in the
United States. The proposal would codify existing Board policy
and procedures and would not impose any additional regulatory
burden. On May 26, 1992, following review of the public comments,
the Board adopted the proposal in substantially the form proposed
(Federal Register cite unavailable).
TIMETABLE:
ACTION
Board requested public comment
Board adopted the proposal
DATE
01/08/93
05/26/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Herbert A. Biern
Deputy Associate Director
Division of Banking Supervision and Regulation
202 452-2620
RIN: 7100-AB60
-39-
FR CITE
58 FR 3235
33.
TITLE:
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Bank Holding
Companies and Change in Bank Control (Docket Number: R-0720)
LEGAL AUTHORITY:
12 USC 3331 et seq
CFR CITATION:
12 CFR 225, Subpart G
ABSTRACT:
In December 1990, the Board, along with the other federal
financial institutions regulatory agencies, issued an interim
common rule and request for public comment regarding those
applicable provisions of the Uniform Standards of Professional
Appraisal Practice ("USPAP") that are required to be incorporated
into each agency's real estate appraisal rules (55 FR 53609,
December 31, 1990). The provisions were published as an interim
rule because the agencies' existing appraisal regulations already
require compliance with the USPAP, as mandated by Title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act of
1989.
The USPAP was undergoing revision when the agencies initially
promulgated their appraisal regulations. This proposal will
permit the agencies to consider and receive comment on the
revisions to USPAP. It is not expected that the proposal will
have a significant economic impact on a substantial number of
small entities.
In June 1993, the Board, along with the other federal financial
institutions regulatory agencies, proposed for public comment
amendments to the agencies' regulations regarding appraisals of
real estate including alternatives for satisfying the statutory
requirement to publish appraisal standards applicable to
federally related transactions (58 FR 31877, June 4, 1993; Docket
Number: R-0803).
TIMETABLE:
ACTION
Board requested public comment
Board incorporated proposal into
a new proposed rulemaking
DATE
12/31/90
FR CITE
55 FR 53609
06/04/93
58 FR 31877
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Christopher J. Bellini
Attorney
Legal Division
202 452-3269
RIN: 7100 AB27
-40-
34.
TITLES
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Banking Holding
Companies and Change in Bank Control (Docket Number: R-0787)
LEGAL AUTHORITY:
PL 102-233, Sec 618(a) "Resolution Trust Corporation Refinancing,
Restructuring, and Improvement Act of 1991"
CFR CITATIONS
12 CFR 208, Appendix A
12 CFR 225, Appendix A
ABSTRACT:
In order to lower the risk weight for certain presold residential
construction loans from 100 percent to 50 percent so as to more
accurately reflect the risk of these assets, the Federal
Financial Institutions Examination Council (FFIEC), in February
1992, issued for public comment a proposed change to the
instructions to the Reports of Condition and Income (Call Report)
to include these loans in the definition of loans secured by
one-to-four family residences (57 FR 4027, February 3, 1992).
This change would place these assets in the 50 percent risk
category under the Board's risk-based capital guidelines. It also
would serve to implement section 618(a) of the RTC Refunding Act
of 1991, which requires the federal banking agencies to lower the
risk weight on certain presold residential construction loans to
50 percent.
Subsequently, the legal staffs of the other federal banking
agencies agreed to not amend the Call Report, but to implement
the change of risk weight instead through a revision to their
respective risk-based capital guidelines. Since the Federal Re
serve cannot change the Call Report unilaterally and in order to
achieve consistency with the other agencies, the Board, in
December 1992, adopted an interim rule, with request for comment,
amending the Board's risk-based capital guidelines to lower the
risk weight for these assets and, thereby, implement the
statutory requirement. In May 1993, following review of the
public comments, the Board adopted the interim rule as a final
rule in substantially the form proposed (58 FR 28491, May 14,
1993) .
It is not anticipated that the revision will have a significant
impact on a substantial number of small institutions. A lower
risk category for presold residential construction loans may help
some small organizations with their capital ratios, but the
impact will be small.
TIMETABLE:
ACTION
FFIEC issued proposed changes to Call
Report
Board adopted interim rule
Board adopted final rule
DATE
02/03/92
FR CITE
57 FR 4027
12/22/92
05/14/93
57 FR 62177
58 FR 28491
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
-41-
TITLES
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Banking Holding
Companies and Change in Bank Control (Docket Number: R-0787)
AGENCY CONTACT:
Robert Motyka
Senior Financial Analyst
Division of Banking Supervision and Regulation
202 452-3621
RINS 7100-AB49
-42-
35.
TITLE:
Regulation: H - Membership of State Banking Institutions in the
Federal Reserve System; and Regulation: Y - Banking Holding
Companies and Change in Bank Control
LEGAL
12
12
12
AUTHORITY:
USC 3310
USC 3331
USC 3351
CFR CITATION:
12 CFR Part 208
12 CFR Part 225
ABSTRACT:
In the April 1993 Agenda, the Board stated that it would consider
issuing for public comment proposed amendments to its appraisal
standards provisions in Regulations H and Y that would permit
appraisers to use the Departure Provision in the Uniform
Standards of Professional Appraisal Practice ("USPAP") and would
eliminate those portions of the Board*s appraisal standards that
are similar to or duplicative of the USPAP standards. Staff was
developing this proposal as part of the Board's ongoing program
to reduce regulatory burden on depository institutions, and the
proposal is not expected to have a significant economic impact on
small institutions.
In June 1993, the Board, along with the other federal financial
institutions regulatory agencies, proposed for public comment
amendments to the agencies' regulations regarding appraisals of
real estate including the above proposals (58 FR 31877, June 4,
1993; Docket Number: R-0803).
TIMETABLE:
ACTION
Board incorporated proposal into
a new proposed rulemaking
DATE
FR CITE
06/04/93
58 FR 31877
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Roger Cole
Deputy Associate Director
Division of Banking Supervision and Regulation
202 452-2618
RIN: 7100-AB51
-43-
36.
TITLE:
Regulation: O - Loans to Executive Officers, Directors, and
Principal Shareholders of Member Banks (Docket Number: R-0785)
LEGAL AUTHORITY:
PL 102-550, sec 955
CFR CITATION:
12 CFR Part 215
ABSTRACT:
In December 1992, the Board issued for public comment a proposal
to exempt three categories of collateralized loans from the
aggregate insider lending limit under Regulation O and section
22(h) of the Federal Reserve Act. The exemptions are based on
minimal risk of loss to the lending institution. The Board
requested comments on these and other similar categories that
might be exempted. The purpose of the exemptions is to make the
aggregate insider lending limit more consistent with the single
borrower lending limit, which contains the proposed exemptions
and additional exemptions as well. In April 1993, the Board,
after reviewing public comments, adopted the three exemptions
with modifications (58 FR 26507, May 4, 1993).
It is expected that the final rule will reduce the regulatory and
recordkeeping burden on banks and increase the ability of banks
to make loans and other extensions of credit that pose little or
no risk to the bank.
TIMETABLE:
ACTION
Board requested public comment
Board adopted the proposal
DATE
12/23/92
05/04/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Gordon L. Miller
Attorney
Legal Division
202 452-2534
RIN: 7100-AB59
-44-
FR CITE
57 FR 61016
58 FR 26507
37.
TITLES
Regulation: Y - Bank Holding Companies and Change in Bank Control
(Docket Number: R-0652)
LEGAL AUTHORITY:
12 USC 1843 "Bank Holding Company Act"
12 USC 1844(b) "Bank Holding Company Act"
CFR CITATION:
12 CFR 225
ABSTRACT:
A provision of Regulation Y permits a State bank subsidiary of a
bank holding company to engage through a nonbank subsidiary in
any activity that is permissible under State law for the bank
subsidiary itself, subject to the same limits as if the bank
engages in the activity directly. (A similar rule applies to
national bank subsidiaries regarding activities permissible for
such banks under Federal law.) The Board received comments on
this provision in connection with its general request for
comments in May 1983 regarding the proposed revision of
Regulation Y. Some of the commenters challenged the Board's
authority to issue this provision, although it has been part of
Regulation Y since 1971. In taking final action on the revision
of Regulation Y, the Board deferred consideration of the comments
on this provision and allowed the existing rule to remain in
effect in the interim (49 FR 794, January 5, 1984).
In December 1988, the Board requested public comment regarding
whether this rule, as it applies to nonbanking companies owned by
state banks in a holding company system, continues to be valid
and appropriate in light of enactment of the Garn-St Germain Act
and certain recent court decisions (53 FR 48915, December 5,
1988). The Board also held an informal public hearing on this
matter on April 7, 1989. The Board has not proposed revising its
current rule regarding subsidiaries of national banks in a
holding company.
A determination to reverse the Board's state bank rule could have
an adverse impact on small banks that are subsidiaries of holding
companies because they might be required to restructure their
nonbanking activities or to take other action.
The issue of the validity of the Board's state bank rule was
recently raised in litigation involving the permissibility of
insurance activities of a nonbank subsidiary of Citicorp's
Delaware bank. In that case, the U.S. Court of Appeals for the
Second Circuit found that the Bank Holding Company Act does not
apply to nonbank companies owned by holding company banks. The
U.S. Supreme Court subsequently declined to review an appeal on
this matter.
The Beard is not expected to take action on this matter during
the next six months.
-45-
TITLE:
Regulation: Y - Bank Holding Companies and Change in Bank Control
(Docket Number: R-0652)
TIMETABLE:
ACTION
Board requested comments
Board allows existing rule to remain in
effect
Board requested comment
Board action not expected during
next six months
DATE
05/25/83
01/05/84
FR CITE
48 FR 23520
49 FR 794
12/05/88
53 FR 48915
08/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: Yes
AGENCY CONTACT:
Scott G. Alvarez
Associate General Counsel
Legal Division
202 452-3583
RIN: 7100-AA41
-46-
38.
TITLE:
Proposals to Modify the Payments System Risk Reduction Program;
ACH Finality (Docket Number: R-0661)
LEGAL AUTHORITY:
12 use 221 et seg
CFR CITATION:
00 CFR None
ABSTRACT:
In March 1989, the Board requested public comment on proposals
regarding the finality accorded automated clearing house (ACH)
credit and debit transactions processed by Federal Reserve Banks
(54 FR 8822, March 2, 1989). Since the Board's proposal, there
have been significant changes in the ACH operating environment,
such as the Federal Reserve's all-electronic ACH policy.
Consequently, the Board has delayed taking final action on the
ACH finality proposals while the ACH operating environment
evolves. Any further action in this area will come only after
further request for public comment.
TIMETABLE:
ACTION
Board requested comment
Action on this proposal is not expected
during next six months
DATE
03/02/89
08/00/93
EFFECTS ON SMALL BUSINESS AND OTHER ENTITIES: None
AGENCY CONTACT:
Jack Walton
Manager
Division of Federal Reserve Bank Operations
and Payment Systems
202 452-2660
RIN: 7100-AA76
-47-
FR CITE
54 FR 8822
NOTICE
BOARD OF GOVERNORS’ SEMIANNUAL REGULATORY FLEXIBILITY AGENDA
October 1, 1993 - April 1, 1994
The Semiannual Regulatory Flexibility Agenda provides information on those regulatory matters that
the Board now has under consideration or anticipates considering over the next six months. It is divided into
three parts: (1) regulatory matters that the Board may consider for public comment during the next six
months; (2) matters that have been proposed and are under consideration; and (3) regulatory matters that
the Board has completed or is not expected to consider further.
A copy of the Agenda was mailed to those on our mailing list who have previously requested it.
Copies will be mailed to others upon request (Tel. No. 212-720-5215 or 5216); single copies of certain
regulations or regulatory amendments can also be obtained at this Bank (33 Liberty Street), in the Issues
Division area on the first floor.
Circulars Division
FEDERAL RESERVE BANK OF NEW YORK
October 1993
Y)
Ref. Cir. No. AT10656^J
@FedFRASER