Unified Agenda
12 CFR Ch. II
AGENCY:
Board of Governors of the Federal Reserve System.
ACTION:
Semiannual regulatory 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 April 1 through October 1, 2002. The next agenda will be published in the fall of 2002.
DATES:
Comments about the form or content of the agenda may be submitted any time during the next 6 months.
ADDRESSES:
Comments should be addressed to Jennifer J. Johnson, 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 spring 2002 agenda as part of the Spring 2002 Unified Agenda of Federal Regulatory and Deregulatory Actions, which is coordinated by the Office of Management and Budget under Executive Order 12866. The agenda also identifies rules the Board has selected for review under section 610(c) of the Regulatory Flexibility Act, and public comment is invited on those entries. 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 6 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. Matters begun and completed between issues of the agenda have not been included.
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.
Margaret McCloskey Shanks, Assistant Secretary of the Board.
| Federal Reserve System—Proposed Rule Stage | Sequence Number | Title | Regulation Identification Number |
|---|---|---|
| 3884 | Regulation: H — Membership of State Banking Institutions in the Federal Reserve System | 7100-AC73 |
| 3885 | Regulation: H — Membership of State Banking Institutions in the Federal Reserve System; and Regulation: Y — Bank Holding Companies and Change in Bank Control | 7100-AC78 |
| 3886 | Regulation: H — Membership of State Banking Institutions in the Federal Reserve System; and Regulation: Y — Bank Holding Companies and Change in Bank Control, Capital Appendices (Section 610 Review) | 7100-AC88 |
| 3887 | Regulation: T — Credit by Brokers and Dealers; Regulation: U — Credit by Banks; and Regulation: X — Borrowers of Securities Credit (Docket Number: R-0995) | 7100-AC45 |
| 3888 | Regulation: Y — Bank Holding Companies and Change in Bank Control | 7100-AC66 |
| 3889 | Regulation: BB — Community Reinvestment (Docket Number: R-1112) (Section 610 Review) | 7100-AC87 |
| 3890 | Regulation: DD — Truth in Savings Act (Section 610 Review) | 7100-AC86 |
| Federal Reserve System—Final Rule Stage | Sequence Number | Title | Regulation Identification Number |
|---|---|---|
| 3891 | Regulation: B — Equal Credit Opportunity (Docket Number: R-1008) (Section 610 Review) | 7100-AC54 |
| 3892 | Regulation: B — Equal Credit Opportunity; and Regulation: Z — Truth in Lending (Docket Numbers: R-1040 and R-1043) | 7100-AC46 |
| 3893 | Regulation: C — Home Mortgage Disclosure (Docket Numbers: R-1001 and R-1120) | 7100-AC51 |
| 3894 | Regulation: E — Electronic Fund Transfers (Docket Numbers: R-0919 and R-1041) | 7100-AC06 |
| 3895 | Regulation: H — Membership of State Banking Institutions in the Federal Reserve System (Docket Number: R-1064) | 7100-AC69 |
| 3896 | Regulation: H — Membership of State Banking Institutions in the Federal Reserve System (Docket Number: R-1099) | 7100-AC84 |
| 3897 | 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-0930) | 7100-AC13 |
| 3898 | 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-1087) | 7100-AC75 |
| 3899 | Regulation: M — Consumer Leasing (Docket Number: R-1042) | 7100-AC53 |
| 3900 | Regulation: V — Fair Credit Reporting (Docket Number: R-1082) | 7100-AC68 |
| 3901 | Regulation: W — Transactions Between Banks and Their Affiliates (Docket Number: R-1103) | 7100-AC63 |
| 3902 | Regulation: Y — Bank Holding Companies and Change in Bank Control (Docket Number: R-1091) | 7100-AC79 |
| 3903 | Regulation: Y — Bank Holding Companies and Change in Bank Control (Docket Number: R-1094) | 7100-AC81 |
| 3904 | Regulation: Y — Bank Holding Companies and Change in Bank Control (Docket Number: R-1092) | 7100-AC82 |
| 3905 | Regulation: DD — Truth in Savings (Docket Number: R-1044) | 7100-AC34 |
| 3906 | Misc. Interpretations: Application of Sections 23A and 23B of the Federal Reserve Act to Derivative Transactions with Affiliates and Intraday Extensions of Credit to Affiliates (Docket Number: R-1104) | 7100-AC85 |
| Federal Reserve System—Completed Actions | Sequence Number | Title | Regulation Identification Number |
|---|---|---|
| 3907 | 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-1085) | 7100-AC76 |
| 3908 | 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-1055) | 7100-AB77 |
| 3909 | 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-1097) | 7100-AC65 |
| 3910 | 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-1080) | 7100-AC77 |
| 3911 | 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-1084) | 7100-AC80 |
| 3912 | Regulation: K — International Banking Operations (Docket Number: R-0994) | 7100-AC47 |
| 3913 | Regulation: Z — Truth in Lending (Docket Number: R-1090) | 7100-AC83 |
3884. REGULATION: H — MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant. Major status under 5 USC 801 is undetermined.
Legal Authority:
12 USC 1828(t)
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208
Legal Deadline:
None
Abstract:
Section 204 of the Gramm-Leach-Bliley Act added a new subsection (t) to section 18 of the Federal Deposit Insurance Act requiring the Board, in consultation with the Securities and Exchange Commission, to establish recordkeeping requirements for state member banks and branches and agencies of foreign banks that rely on the exceptions from the definition of broker or dealer provided in section 3(a)(4) or (5) of the Securities Exchange Act of 1934.
The Board anticipates issuing for public comment a rule that would implement these recordkeeping requirements. The Board notes that the Securities and Exchange Commission has, by rule, delayed the effective date of the new exemptions for banks contained in section 3(a)(4) and (5) of the Securities Exchange Act of 1934, and has requested comment on rules that would provide guidance concerning the scope of their exemptions. (Release No. 34-44570, July 18, 2001; Release No. 34-44291, 66 FR 27760, May 18, 2001). It is not anticipated that the Board's proposal, when issued, would have a significant economic impact on a substantial number of small entities subject to the Board's regulation.
| Action | Date | FR Cite |
| Board will consider requesting comment by | 05/00/02 |
Regulatory Flexibility Analysis Required:
Undetermined
Government Levels Affected:
None
Agency Contact:
Kieran Fallon, Senior Counsel, Federal Reserve System, Legal Division
Phone: 202 452-5270
RIN:
7100-AC73
3885. REGULATION: H — MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM; AND REGULATION: Y — BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 24; 12 USC 24a; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 USC 481 to 486; 12 USC 601; 12 USC 611; 12 USC 1814; 12 USC 1816; ...
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208; 12 CFR 225
Legal Deadline:
None
Abstract:
The Board will consider issuing for public comment proposed amendments to Regulations H and Y that will take into account the implications of the Gramm-Leach-Bliley Act (GLB Act) relating to the ability of state member banks to control operations subsidiaries. The proposed amendments will also include a series of technical changes to Regulation Y necessitated by the GLB Act, as well as a general reorganization of Regulation Y. The proposal should not have a substantive economic impact on small entities, as its substantive portions are expected to liberalize the Board's present rules.
| Action | Date | FR Cite |
| Board will consider requesting comment by | 06/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Andrew S. Baer, Counsel, Federal Reserve System, Legal Division
Phone: 202 452-2246
RIN:
7100-AC78
3886. ¤ REGULATION: H — MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM; AND REGULATION: Y — BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL, CAPITAL APPENDICES (SECTION 610 REVIEW)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 24; 12 USC 24a; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 611; 12 USC 1814; 12 USC 1816; ...
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208 app A; 12 CFR 208 app D; 12 CFR 208 app E; 12 CFR 225 app A; 12 CFR 225 app D; 12 CFR 225 app E
Legal Deadline:
None
Abstract:
The capital appendices to Regulations H and Y set forth guidelines for institutions in calculating their regulatory capital requirements, both risk-based and leverage.
While the guidelines are continuously monitored and updated as required to reflect market innovations, accounting changes, or modifications to supervisory policy, the Board is undertaking a more comprehensive review of the guidelines to minimize regulatory burden, clarify issues arising from the Gramm-Leach-Bliley Act, enhance the overall risk sensitivity, and to comply with provisions of section 610(c) of the Regulatory Flexibility Act of 1994. Following the review, the Board will publish a notice of proposed rulemaking.
| Action | Date | FR Cite |
| Board will consider requesting comment by | 06/00/02 |
Regulatory Flexibility Analysis Required:
Undetermined
Government Levels Affected:
None
Agency Contact:
Barbara Bouchard, Assistant Director, Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-3072
RIN:
7100-AC88
3887. REGULATION: T — CREDIT BY BROKERS AND DEALERS; REGULATION: U — CREDIT BY BANKS; AND REGULATION: X — BORROWERS OF SECURITIES CREDIT (DOCKET NUMBER: R-0995)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
15 USC 78G, Securities Exchange Act of 1934, as amended
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 220; 12 CFR 221; 12 CFR 224
Legal Deadline:
None
Abstract:
As part of the regular review of its regulations and in accordance with requirements of section 303 of the Riegle Community Development and Regulatory Improvement Act of 1994, and section 610(c) of the Regulatory Flexibility Act of 1994, the Board is conducting a review of its margin regulations. In order to complete this review, the Board approved issuing for public comment an advance notice of proposed rulemaking in December 1997 (63 FR 2840, January 16, 1998). The advance notice highlights issues raised by interested persons in response to previous requests for comment that had not been addressed by the Board in the course of its periodic review. It also provides an opportunity to further harmonize the treatment of bank and nonbank lenders under the revised Regulation U adopted by the Board at the same time as the advance notice. The advance notice also invites comment on all areas of the regulations.
Following review of the public comments, the Board is expected to take further action.
| Action | Date | FR Cite |
| Board requested comment | 01/16/98 | 63 FR 2840 |
| Further Board action by | 09/00/02 |
Regulatory Flexibility Analysis Required:
Undetermined
Government Levels Affected:
None
Agency Contact:
Scott J. Holz, Counsel, Federal Reserve System, Legal Division
Phone: 202 452-2966
RIN:
7100-AC45
3888. REGULATION: Y — BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 1844(b)
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 225
Legal Deadline:
None
Abstract:
Title I of the Gramm-Leach-Bliley Act (GLB Act) makes a number of miscellaneous amendments to sections 3, 4, and 5 of the Bank Holding Company Act of 1956 (BHC Act) and adds a new section 10A to the BHC Act. These amendments, among other things, prohibit the Board from determining that new activities are closely related to banking under section 4(c)(8) of the BHC Act; streamline the Board's reporting, examination, and other supervisory authority over bank holding companies and their subsidiaries; reduce the restrictions applicable to companies that control "nonbank banks" that are exempt from the nonbanking restrictions of the BHC Act under section 4(f) of that Act; and repeal the savings bank life insurance provisions currently set forth in section 3(g) of the BHC Act.
The Board will consider issuing for public comment amendments to Regulation Y to implement the provisions of the GLB Act affecting the BHC Act that are not addressed in proposed rules described elsewhere in the Board's agenda. It is not anticipated that the proposals will have a significant economic impact on a substantial number of small entities subject to the Board's regulation.
| Action | Date | FR Cite |
| Board will consider requesting comment by | 05/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Kieran Fallon, Senior Counsel, Federal Reserve System, Legal Division
Phone: 202 452-5270
RIN:
7100-AC66
3889. REGULATION: BB — COMMUNITY REINVESTMENT (DOCKET NUMBER: R-1112) (SECTION 610 REVIEW)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 228
Legal Deadline:
None
Abstract:
In 1995, the Board issued Regulation BB which implements the Community Reinvestment Act (CRA). Substantially similar regulations were issued by the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS). The goal of these regulations was to achieve more objective performance-based CRA examinations and to minimize burden. At the time these regulations were issued, the agencies committed to conducting a 2002 comprehensive review of the regulations' effectiveness in achieving this goal.
In July 2001, the Board, the OCC, FDIC, and OTS issued an advance notice of proposed rulemaking (ANPR) (66 FR 37602, July 19, 2001). The notice identifies key issues in addition to requesting comment generally on potential revisions to the regulation. The Board is also reviewing the regulation in accordance with requirements of section 610(c) of the Regulatory Flexibility Act of 1994.
The first issue presented in the ANPR is whether any change to the regulation is necessary and warranted, in light of the burden that change would entail. Other issues include: the effectiveness of the evaluation methods set forth in the regulations; the effectiveness of the requirement that large financial institutions collect and report data on small business, small farm, and community development lending; and whether the regulations have provided a reasonable and sufficient standard for designating the communities within which a financial institution's activities will be evaluated during a CRA examination.
It is not anticipated that any rule proposed for public comment would have a significant economic impact on a substantial number of small entities subject to the Board's regulation. Following review of the public comments, the Board is expected to take further action.
| Action | Date | FR Cite |
| Board requested comment | 07/19/01 | 66 FR 37602 |
| Further Board action by | 06/00/02 |
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
Agency Contact:
Kathleen Ryan, Senior Attorney, Federal Reserve System, Division of Consumer and Community Affairs
Phone: 202 452-3667
RIN:
7100-AC87
3890. REGULATION: DD — TRUTH IN SAVINGS ACT (SECTION 610 REVIEW)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 230
Legal Deadline:
None
Abstract:
Regulation DD, which implements the Truth in Savings Act, requires that depository institutions uniformly disclose to customers information about the terms and conditions on which interest is paid and fees are assessed on deposit accounts.
The Board has targeted Regulation DD for review to update it and to comply with provisions of section 610(c) of the Regulatory Flexibility Act of 1994. The review is expected to commence with publication of an advance notice of proposed rulemaking in 2002 and be completed in the same year.
| Action | Date | FR Cite |
| Board will consider requesting comment by | 05/00/02 |
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
Agency Contact:
Jane Aherns, Senior Counsel, Federal Reserve System, Division of Consumer and Community Affairs
Phone: 202 452-3667
RIN:
7100-AC86
3891. REGULATION: B — EQUAL CREDIT OPPORTUNITY (DOCKET NUMBER: R-1008) (SECTION 610 REVIEW)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 202
Legal Deadline:
None
Abstract:
In 1998, the Board targeted Regulation B, which implements the Equal Credit Opportunity Act (ECOA), for a review to update the regulation. The ECOA makes it unlawful for creditors to discriminate against an applicant, in any aspect of a credit transaction, on the basis of race, color, religion, national origin, gender, marital status, age, and other specified bases. In March 1998, the Board issued for public comment an advance notice of proposed rulemaking for Regulation B that identified specific issues, in addition to requesting general comment on revisions to the regulation (63 FR 12326, March 12, 1998).
In August 1999, following review of the public comments on the advance notice, the Board issued for public comment a proposed rule amending Regulation B (64 FR 44582, August 16, 1999). Major revisions in the proposed rule include: removing the general prohibition against obtaining information about applicant characteristics such as national origin or gender, although such information still generally may not be considered in extending credit; adding a disclosure requirement for creditors that voluntarily collect data on applicant characteristics; requiring creditors to retain certain records for preapproved credit solicitations; and extending the record retention period for most business credit applications.
Based on the regulatory flexibility analysis, it is not expected that the proposal will have a significant impact on small entities. Although there would be a new disclosure requirement for creditors that voluntarily request information about applicant characteristics, a model form is proposed to ease compliance. Also, there is a new requirement to retain certain records for preapproved credit solicitations. For business reasons, many institutions already retain some of the preapproved credit solicitation information being sought. In addition, compliance burdens should be minimized by the fact that creditors may use a variety of methods, such as electronic storage, to retain records. Following review of the public comments, the Board is expected to take further action.
| Action | Date | FR Cite |
| Board requested comment on advance notice | 03/12/98 | 63 FR 12326 |
| Board requested comment on proposed rule | 08/16/99 | 64 FR 44582 |
| Further Board action by | 10/00/02 |
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
Agency Contact:
Natalie E. Taylor, Counsel, Federal Reserve System, Division of Consumer and Community Affairs
Phone: 202 452-2412
RIN:
7100-AC54
3892. REGULATION: B — EQUAL CREDIT OPPORTUNITY; AND REGULATION: Z — TRUTH IN LENDING (DOCKET NUMBERS: R-1040 AND R-1043)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
15 USC 1601 et seq; 12 USC 4301 et seq
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 202; 12 CFR 213; 12 CFR 226; 12 CFR 230
Legal Deadline:
None
Abstract:
In March 1998 and September 1999, the Board issued for public comment proposed rules to permit the electronic delivery of Regulation B and Regulation Z disclosures, if the consumer agrees (63 FR 14548, March 25, 1998, and 64 FR 46988, September 14, 1999). The Board also issued similar proposed rules under other consumer financial services laws administered by the Board.
The Electronic Signatures in Global and National Commerce Act (E-Sign Act), which became effective October 1, 2000, generally governs the validity of records and signatures in electronic form. The E-Sign Act incorporated some elements of the Board's regulatory proposals governing electronic disclosures. Some provisions in the Board's proposals, however, were modified or preempted by the Act, while other provisions were not addressed by the E-Sign Act but were consistent with that Act and could be issued as final rules.
In March 2001, the Board issued interim final rules on the electronic delivery of disclosures (66 FR 17329, March 30, 2001, and 66 FR 17779, April 4, 2001). The scheduled mandatory compliance date was later lifted (66 FR 41439, August 8, 2001). Under the interim final rules, consistent with the requirements of the E-Sign Act, creditors generally must obtain consumers' affirmative consent to provide disclosures electronically. There are exceptions for certain disclosures. The interim final rules also establish uniform requirements for the timing and delivery of electronic disclosures. The March 2001 rulemakings were published as interim final rules to allow interested persons to present new information or views not considered in previous rulemakings. The rules are not expected to have a significant economic impact on a substantial number of small business entities. Following review of the public comments, the Board will take further action.
| Action | Date | FR Cite |
| Board issued proposed rules | 03/25/98 | 63 FR 14548 |
| Board issued revised proposed rules | 09/14/99 | 64 FR 46988 |
| Board issued interim final rule (Regulation Z) | 03/30/01 | 66 FR 17329 |
| Board issued interim final rule (Regulation B) | 04/04/01 | 66 FR 17779 |
| Board lifted mandatory compliance date | 08/08/01 | 66 FR 41439 |
| Further Board action by | 05/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Natalie E. Taylor, Counsel, Federal Reserve System, Division of Consumer and Community Affairs
Phone: 202 452-2412
RIN:
7100-AC46
3893. REGULATION: C — HOME MORTGAGE DISCLOSURE (DOCKET NUMBERS: R-1001 AND R-1120)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 203
Legal Deadline:
None
Abstract:
In 1998, Regulation C, which implements the Home Mortgage Disclosure Act (HMDA) was targeted for review to update the regulation. HMDA requires most mortgage lenders located in metropolitan areas to report annually to Federal agencies and disclose to the public information about their home purchase and home improvement lending activities. In March 1998, the Board issued an advance notice of proposed rulemaking, and in December 2000 issued for public comment a proposed rule amending Regulation C (65 FR 78656, December 15, 2000).
In January 2002, following review of the public comments, the Board approved a final rule amending Regulation C (67 FR 7221, February 15, 2002). Among other things, the amendments, which are effective January 1, 2003, do the following: (1) revise definitions of certain reportable loans and the definition of application to include "preapprovals" as defined in the regulation; (2) require lenders to report loans with APRs that exceed the yield on a Treasury security of comparable maturity, if the rate spread above the Treasury rate is 3 percentage points for first lien loans and 5 percentage points for subordinate lien loans—lenders must report the rate spread above the appropriate Treasury security; (3) report whether a loan is subject to HOEPA and whether a loan is for manufactured housing; and (4) expand the coverage of nondepository lenders.
The final rule would affect all institutions currently within the scope of the regulation, including covered small institutions. No newly covered institution would be a small mortgage lender. It is not anticipated that the final rule would have a significant economic impact on a substantial number of small entities subject to the Board's regulation.
At the time of adoption of the final rule, the Board requested comment on three additional issues: (1) whether the rate spreads of three and four percent are appropriate; (2) whether lien status should be reported; and (3) whether lenders should be required to ask about race and national origin, for example, in connection with telephone applications (67 FR 7251, February 15, 2002). Following review of the public comments, the Board will take further action.
| Action | Date | FR Cite |
| Board requested comment on advance notice | 03/12/98 | 63 FR 12329 |
| Board requested comment on proposed rule | 12/15/00 | 65 FR 78656 |
| Board adopted proposals | 02/15/02 | 67 FR 7221 |
| Board requested comment | 02/15/02 | 67 FR 7251 |
| Further Board action by | 07/00/02 |
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
Agency Contact:
Kathleen Ryan, Senior Attorney, Federal Reserve System, Division of Consumer and Community Affairs
Phone: 202 452-2412
RIN:
7100-AC51
3894. REGULATION: E — ELECTRONIC FUND TRANSFERS (DOCKET NUMBERS: R-0919 AND R-1041)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
15 USC 1693 et seq
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 205
Legal Deadline:
None
Abstract:
In March 1998 and September 1999, the Board issued for public comment an interim final rule and proposed rules under Regulation E to permit the electronic delivery of disclosures, if the consumer agrees (Docket Number: R-1002; 63 FR 14528, March 25, 1998 (interim rule), and Docket Number: R-1041; 64 FR 49699, September 14, 1999). The Board also issued similar proposed rules under other consumer financial services laws administered by the Board.
The Electronic Signatures in Global and National Commerce Act (E-Sign Act), which became effective October 1, 2000, generally provides that records and signatures may not be denied legal effect solely because they are in electronic form. The E-Sign Act incorporated some elements of the Board's regulatory proposal governing electronic disclosures. Certain provisions in the Board's proposal, however, were modified or preempted by the Act, while other provisions were not addressed by the E-Sign Act but were consistent with the Act and could be issued as final rules.
In March 2001, the Board issued an interim final rule on the electronic delivery of disclosures (66 FR 17786, April 4, 2001). The scheduled mandatory compliance date was later lifted (66 FR 41439, August 8, 2001). Under the interim final rule, consistent with the requirements of the E-Sign Act, financial institutions generally must obtain consumers' affirmative consent to provide disclosures electronically. The interim final rule also establishes uniform requirements for the timing and delivery of electronic disclosures. The March 1998 interim rule was withdrawn under the interim final rule.
The March 2001 rulemaking was published as an interim final rule to allow interested persons to present new information or views not considered in previous rulemakings. The rule is not expected to have a significant economic impact on a substantial number of small business entities. Following review of the public comments, the Board is expected to take further action.
A May 1996 Regulation E proposal to permit financial institutions to provide disclosures electronically also included proposed amendments imposing modified requirements on stored-value products in systems that track individual transactions, cards, or consumers and providing an exemption for cards on which a maximum value of $100 can be stored (Docket Number: R-0919; 61 FR 19696, May 2, 1996); the latter proposal remains pending.
| Action | Date | FR Cite |
| Board issued proposed rule on coverage of stored-value products | 05/02/96 | 61 FR 19696 |
| Board issued interim rule permitting electronic delivery of disclosures | 03/25/98 | 63 FR 14528 |
| Board issued proposed rule imposing additional requirements re: electronic delivery of disclosures | 09/14/99 | 64 FR 49699 |
| Board issued interim final rules | 04/04/01 | 66 FR 17786 |
| Board lifted mandatory compliance date of interim final rule | 08/08/01 | 66 FR 41439 |
| Further Board action by | 05/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
John C. Wood, Counsel, Federal Reserve System, Division of Consumer and Community Affairs
Phone: 202 452-2412
RIN:
7100-AC06
3895. REGULATION: H — MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-1064)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208
Legal Deadline:
None
Abstract:
In March 2000, the Board approved an interim rule with request for public comment amending Regulation H to implement section 121 of the Gramm-Leach-Bliley Act for state member banks (65 FR 14810, March 20, 2000). Section 121 in part authorizes state member banks to control, or hold an interest in, financial subsidiaries so as to conduct certain activities that are financial in nature or incidental to a financial activity. In August 2001, following review of the public comments, the Board adopted the final rule substantially as proposed (66 FR 42929, August 16, 2001).
The Board will also consider issuing for public comment a proposed rule in place of an existing Miscellaneous Interpretation (12 CFR 250.141) relating to member bank purchases of stock in operations subsidiaries to update its provisions and conform to section 121. It is not anticipated that the proposal will have a significant economic impact on a substantial number of small entities subject to the Board's regulation.
| Action | Date | FR Cite |
| Board requested comment on interim rule | 03/20/00 | 65 FR 14810 |
| Board adopted interim rule | 08/16/01 | 66 FR 42929 |
| Board will consider requesting comment on replacement rule for Miscellaneous Interpretation by | 06/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Michael J. O'Rourke, Counsel, Federal Reserve System, Legal Division
Phone: 202 452-3288
RIN:
7100-AC69
3896. REGULATION: H — MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-1099)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208
Legal Deadline:
None
Abstract:
In April 2001, the Board, along with the other banking agencies, issued for public comment a proposed rule that would amend uniform regulations implementing section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (Interstate Act) to effectuate the amendment of section 109 contained in section 106 of the Gramm-Leach-Bliley Act (66 FR 18411, April 9, 2001). Section 109 prohibits a bank from establishing or acquiring a branch or branches outside of its home state for the purpose of deposit production. Additionally, section 109 contains guidelines for determining whether a bank is reasonably helping to meet the credit needs of communities served by an out-of-state branch or branches. Section 106 expanded the coverage of section 109 of the Interstate Act to include any branch of a bank controlled by an out-of-state bank holding company. The proposed rule amends the regulatory deposit production prohibition to include any bank or branch controlled by an out-of-state bank holding company, including a bank consisting only of a main office.
It is not anticipated that the rule will have a significant economic impact on a substantial number of small entities subject to the regulation. Following review of the public comments, the Board is expected to take further action.
| Action | Date | FR Cite |
| Board requested comment | 04/09/01 | 66 FR 18411 |
| Further Board action by | 06/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Michael J. O'Rourke, Counsel, Federal Reserve System, Legal Division
Phone: 202 452-3288
RIN:
7100-AC84
3897. 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-0930)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 611; 12 USC 1814; 12 USC 1823(j); 12 USC 1828(o); 12 USC 1831(o); 12 USC 1831p-1; 12 USC 3105; ...
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208 app A
Legal Deadline:
None
Abstract:
In August 1996, the Board issued for public comment a proposal to revise the risk-based capital treatment for certain collateralized transactions (61 FR 42565, August 16, 1996). Under the Board's existing risk-based capital treatment, the portion of a transaction that is supported by qualifying collateral (that is, cash or OECD government securities) is risk-weighted at 20 percent. Transactions that are fully supported by collateral with a positive margin may be eligible for a zero percent risk weight. Generally, the proposal would permit a portion of a transaction that is fully supported with a positive margin of collateral to be eligible for a zero percent risk weight. The portion that is to be continuously collateralized must be identified by the parties.
This proposal was developed on an interagency basis and, if adopted, would eliminate one of the substantive differences among the agencies with regard to the risk-based capital treatment for collateralized transactions. It would implement provisions in the Riegle Community Development and Regulatory Improvement Act of 1994, which requires the agencies to make uniform regulations and guidelines implementing common supervisory policies. The effect of the proposal would be to allow institutions to hold less capital for certain collateralized transactions. It is not expected to have a significant economic impact on a substantial number of small entities.
Following review of the public comments and development of an inter-agency final rule, the Board is expected to take further action.
| Action | Date | FR Cite |
| Board requested comment | 08/16/96 | 61 FR 42565 |
| Further Board action by | 07/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
John Connolly, Supervisory Financial Analyst, Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-3621
RIN:
7100-AC13
3898. 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-1087)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 24; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 USC 461; 12 USC 1817(j)(13); 12 USC 1818; 12 USC 1818(o); 12 USC 1831i; 12 USC 1831p-1; 12 USC 1843(c)(8); ...
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208; 12 CFR 225
Legal Deadline:
None
Abstract:
In December 2000, the Board issued an interim rule, with request for public comment, amending Regulations H and Y to effectively reduce the capital requirement for certain securities borrowing transactions (65 FR 75856, December 5, 2000). The proposed amendments would recognize the historically low risk of these transactions and bring the capital requirements for U.S. banking organizations into better alignment with the capital requirements of other U.S. and non-U.S. regulators of financial institutions. The proposed amendments would have little or no effect on small banking organizations subject to the Board's regulation, as securities borrowing activities are concentrated in a relatively small number of very large banking organizations. Following review of the public comments, the Board will take further action.
| Action | Date | FR Cite |
| Board requested comment | 12/05/00 | 65 FR 75856 |
| Further Board action by | 10/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
David Adkins, Supervisory Financial Analyst, Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-5259
RIN:
7100-AC75
3899. REGULATION: M — CONSUMER LEASING (DOCKET NUMBER: R-1042)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 213
Legal Deadline:
None
Abstract:
In March 1998 and September 1999, the Board issued for public comment proposed rules under Regulation M, which implements the Consumer Leasing Act, to permit the electronic delivery of disclosures, if the consumer agrees (63 FR 14538, March 25, 1998 and 64 FR 49713, September 14, 1999). The Board also issued similar proposed rules under other consumer financial services regulations administered by the Board.
The Electronic Signatures in Global and National Commerce Act (E-Sign Act), which became effective October 1, 2000, generally governs the validity of records and signatures in electronic form. The E-Sign Act incorporated some elements of the Board's regulatory proposal governing electronic disclosures. Some provisions in the Board's proposal, however, were modified or preempted by the Act, while other provisions were not addressed by the E-Sign Act but were consistent with that Act and could be issued as final rules.
In March 2001, the Board issued an interim final rule on the electronic delivery of disclosures (66 FR 17322, March 30, 2001). The scheduled mandatory compliance date was later lifted (66 FR 41439, August 8, 2001). Under the interim final rule, consistent with the requirements of the E-Sign Act, lessors generally must obtain consumers' affirmative consent to provide disclosures electronically. There are exceptions for disclosures not deemed to relate to "transactions," such as disclosures in advertising. The interim final rule also establishes uniform requirements for the timing and delivery of electronic disclosures.
The March 2001 rulemaking was published as an interim final rule to allow interested persons to present new information or views not considered in previous rulemakings. The rule is not expected to have a significant economic impact on a substantial number of small business entities. Following review of the public comments, the Board will take further action.
| Action | Date | FR Cite |
| Board issued proposed rule | 03/25/98 | 63 FR 14538 |
| Board issued revised proposed rule | 09/14/99 | 64 FR 49713 |
| Board issued interim final rule | 03/30/01 | 66 FR 17322 |
| Board lifted mandatory compliance date | 08/08/01 | 66 FR 41439 |
| Further Board action by | 05/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Jane Ahrens, Senior Counsel, Federal Reserve System, Division of Consumer and Community Affairs
Phone: 202 452-2412
RIN:
7100-AC53
3900. REGULATION: V — FAIR CREDIT REPORTING (DOCKET NUMBER: R-1082)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
15 USC 1681 et seq
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 222
Legal Deadline:
None
Abstract:
In 1996, the Congress amended the Fair Credit Reporting Act (FCRA) as part of the Consumer Credit Reporting Reform Act. The amendments, among other things, prohibited the federal regulatory agencies from issuing implementing regulations. In November 1999, the Congress once again amended the FCRA as part of the Gramm-Leach-Bliley Act. The amendments lifted the prohibition and directed the Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision to issue implementing regulations jointly.
In October 2000, the agencies issued proposed regulations for public comment (65 FR 63120, October 20, 2000). The proposal is not expected to have a significant economic impact on a substantial number of small entities. Following review of the public comments, the agencies will take further action.
| Action | Date | FR Cite |
| Board requested comment | 10/20/00 | 65 FR 63120 |
| Further Board action by | 09/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
David Stein, Senior Attorney, Federal Reserve System, Division of Consumer and Community Affairs
Phone: 202 452-3667
RIN:
7100-AC68
3901. REGULATION: W — TRANSACTIONS BETWEEN BANKS AND THEIR AFFILIATES (DOCKET NUMBER: R-1103)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 371c; 12 USC 371c-1
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 223
Legal Deadline:
None
Abstract:
In May 2001, in response to passage of the Gramm-Leach-Bliley Act, the Board issued for public comment a new regulation (Regulation W) to implement sections 23A and 23B of the Federal Reserve Act (66 FR 24186, May 11, 2001). Sections 23A and 23B regulate transactions between insured depository institutions and their affiliates. The proposed regulation codifies existing interpretations and asks for comment on new interpretations and exemptions. The proposal also requests comment on the treatment of derivatives and intra-day credit exposures between insured depository institutions and their affiliates. The Board has requested comment on the likely burden the rule will impose on small institutions. Following review of the public comments, the Board is expected to take further action.
| Action | Date | FR Cite |
| Board requested comment | 05/11/01 | 66 FR 24186 |
| Further Board action by | 06/00/02 |
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
Agency Contact:
Pamela G. Nardolilli, Senior Counsel, Federal Reserve System, Legal Division
Phone: 202 452-3289
RIN:
7100-AC63
3902. REGULATION: Y — BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (DOCKET NUMBER: R-1091)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 225.86
Legal Deadline:
None
Abstract:
In January 2001, the Board issued for public comment a proposed rule amending Regulation Y that would define real estate brokerage and real estate management activities as financial in nature or incidental to a financial activity and therefore permissible for financial holding companies under the Board's Regulation Y (66 FR 307, January 3, 2001). The proposal would facilitate the creation of diversified financial companies that can offer "one-stop shopping" to consumers contemplating the purchase or management of real estate. The proposal is not expected to have a significant economic impact on a substantial number of small business entities. Following review of the public comments, the Board will take further action.
| Action | Date | FR Cite |
| Board requested comment | 01/03/01 | 66 FR 307 |
| Further Board action by | 06/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Mark E. Van Der Weide, Counsel, Federal Reserve System, Legal Division
Phone: 202 452-2263
RIN:
7100-AC79
3903. REGULATION: Y — BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (DOCKET NUMBER: R-1094)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 225.86(e)
Legal Deadline:
None
Abstract:
In December 2000, the Board, jointly with the Department of the Treasury, issued interim rules with request for public comment that implement section 4(k)(5) of the Bank Holding Company Act and section 5136A(b)(3) of the Revised Statutes, which were added by the Gramm-Leach-Bliley Act (66 FR 257, January 3, 2001). The interim rules specify three general types of activities to be financial in nature or incidental to a financial activity, and create a mechanism by which financial holding companies, financial subsidiaries of national banks, or others may request that the Board or the Secretary of the Treasury, respectively, define particular activities within one of the three categories. Such activities would therefore be permissible for financial holding companies and financial subsidiaries of national banks. The rules are not expected to have a significant economic impact on a substantial number of small entities. Following review of the public comments, the Board will take further action.
| Action | Date | FR Cite |
| Board requested comment | 01/03/01 | 66 FR 257 |
| Further Board action by | 06/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Andrew S. Baer, Counsel, Federal Reserve System, Legal Division
Phone: 202 452-2246
RIN:
7100-AC81
3904. REGULATION: Y — BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (DOCKET NUMBER: R-1092)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 1843(k)
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 225.28; 12 CFR 225.89
Legal Deadline:
None
Abstract:
In December 2000, the Board issued for public comment a proposed rule that would allow all bank holding companies to conduct a greater amount of nonfinancial data processing than previously authorized (65 FR 80384, December 21, 2000). The proposed rule also would allow financial holding companies, as a complementary activity, to own companies engaged in certain data processing-related activities, such as data storage and Internet and portal hosting. The Board anticipates that the proposal would allow bank holding companies to provide a wider range of financial products and services to customers and would not have a significant economic impact on a substantial number of small entities. Following review of the public comments, the Board will take further action.
| Action | Date | FR Cite |
| Board requested comment | 12/21/00 | 65 FR 80384 |
| Further Board action by | 07/00/02 |
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
Agency Contact:
Kieran Fallon, Senior Counsel, Federal Reserve System, Legal Division
Phone: 202 452-5270
RIN:
7100-AC82
3905. REGULATION: DD — TRUTH IN SAVINGS (DOCKET NUMBER: R-1044)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 4301 et seq
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 230
Legal Deadline:
None
Abstract:
In March 1998 and September 1999, the Board issued for public comment proposed rules and an interim rule under Regulation DD, which implements the Truth in Savings Act (TISA), to permit the electronic delivery of disclosures, if the consumer agrees (63 FR 14533, March 25, 1998, and 64 FR 49740, September 14, 1999). The interim rule permits the electronic delivery of TISA disclosures provided on periodic statements. The Board also issued similar proposed rules under other consumer financial services laws administered by the Board.
The Electronic Signatures in Global and National Commerce Act (E-Sign Act), which became effective October 1, 2000, generally governs the validity of records and signatures in electronic form. The E-Sign Act incorporated some elements of the Board's regulatory proposal governing electronic disclosures. Certain provisions in the Board's proposal, however, were modified or preempted by the Act, while other provisions were not addressed by the E-Sign Act but were consistent with that Act and could be issued as final rules.
In March 2001, the Board issued an interim final rule on the electronic delivery of disclosures (66 FR 17795, April 4, 2001). The scheduled mandatory compliance date was later lifted (66 FR 41439, August 8, 2001). Under the interim final rule, consistent with the requirements of the E-Sign Act, depository institutions generally must obtain consumers' affirmative consent to provide disclosures electronically. There are exceptions for disclosures not deemed to relate to "transactions," such as disclosures in advertising. The interim final rule also establishes uniform requirements for the timing and delivery of electronic disclosures. The 1999 interim rule permitting electronic delivery of Regulation DD disclosures on periodic statements was withdrawn under the interim final rule.
The March 2001 rulemaking was published as an interim final rule to allow interested persons to present new information or views not considered in previous rulemakings. The rule is not expected to have a significant economic impact on a substantial number of small business entities. Following review of the public comments, the Board will take further action.
| Action | Date | FR Cite |
| Board issued proposed rule | 03/25/98 | 63 FR 14533 |
| Board issued revised proposed rule and interim rule | 09/14/99 | 64 FR 49740 |
| Board issued interim final rule | 04/04/01 | 66 FR 17795 |
| Board lifted mandatory compliance date | 08/08/01 | 66 FR 41439 |
| Further Board action by | 05/00/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Jane Ahrens, Senior Counsel, Federal Reserve System, Division of Consumer and Community Affairs
Phone: 202 452-2412
RIN:
7100-AC34
3906. MISC. INTERPRETATIONS: APPLICATION OF SECTIONS 23A AND 23B OF THE FEDERAL RESERVE ACT TO DERIVATIVE TRANSACTIONS WITH AFFILIATES AND INTRADAY EXTENSIONS OF CREDIT TO AFFILIATES (DOCKET NUMBER: R-1104)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 371c(f); 12 USC 371c-1(e)
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 250.247
Legal Deadline:
None
Abstract:
The Gramm-Leach-Bliley Act (GLB Act) required the Board to adopt, by May 12, 2001, final rules under section 23A to address credit exposures arising out of derivative transactions between insured depository institutions and their affiliates and intraday extensions of credit by insured depository institutions to their affiliates as covered transactions. In May 2001, the Board adopted interim final rules pursuant to the amendments to section 23A contained in the GLB Act and requested public comment on the rules (66 FR 24229, May 11, 2001).
The interim rule requires that an institution establish and maintain policies and procedures reasonably designed to manage the credit exposure arising from the institution's derivative transactions with affiliates and clarifies that institution-affiliate derivative transactions are subject to the market terms requirement of section 23B. The policies and procedures must at a minimum provide for monitoring and controlling the credit exposure arising from the institution's derivative transactions with each affiliate and all affiliates in the aggregate, and ensure that the institution's derivative transactions with affiliates comply with section 23B. The intraday credit rule also requires insured depository institutions to have policies and procedures in place and clarifies that the transactions are subject to section 23B.
Although the proposal is not expected to have a significant economic impact on small institutions, the Board has specifically requested comment on the likely burden the rule will impose. Following review of the public comments, the Board will take further action on this matter in connection with its review of the proposed Regulation W (Docket Number: R-1103; RIN 7100-AC63).
| Action | Date | FR Cite |
| Board requested comment | 05/11/01 | 66 FR 24229 |
| Further Board action by | 06/00/02 |
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
Agency Contact:
Mark E. Van Der Weide, Counsel, Federal Reserve System, Legal Division
Phone: 202 452-2263
RIN:
7100-AC85
3907. 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-1085)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 24; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 USC 461; 12 USC 1817(j)(13); 12 USC 1818; 12 USC 1818(o); 12 USC 1831i; 12 USC 1831p-1; 12 USC 1843(c)(8); ...
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208; 12 CFR 225
Legal Deadline:
None
Abstract:
In December 2000, the Board issued for public comment proposed amendments to the Board's regulatory capital guidelines for banks and bank holding companies that would apply a 20 percent risk weight to claims on, and claims guaranteed by, qualifying securities firms (65 FR 76180, December 6, 2000). The proposed rule is consistent with an amendment to the Basel Accord adopted by the Basel Committee on Banking Supervision in April 1998. It would reduce the risk weight from 100 percent to 20 percent applied to claims on, and claims guaranteed by, certain securities firms incorporated in countries that are members of the Organization for Economic Cooperation and Development, subject to certain prudential requirements. It is not anticipated that the proposal will have a significant economic impact on a substantial number of small institutions.
In February 2002, following review of the public comments, the Board adopted the rule with revisions (67 FR 16971, April 9, 2002). The final rule also gives a 20 percent risk weight to certain collateralized claims (i.e., repurchase/reverse repurchase agreements and securities borrowing/lending transactions) on qualifying securities firms if the claims satisfy designated prudential criteria.
| Action | Date | FR Cite |
| Board requested public comment | 12/06/00 | 65 FR 76180 |
| Board adopted proposal | 04/09/02 | 67 FR 16971 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
John Connolly, Supervisory Financial Analyst, Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-3621
RIN:
7100-AC76
3908. 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-1055)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 338; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 611; 12 USC 1814; 12 USC 1817(j)(13); 12 USC 1818; 12 USC 1823(j); 12 USC 1828(o); 12 USC 1831i; ...
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208 app A; 12 CFR 225 app A
Legal Deadline:
None
Abstract:
In November 1997, the Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision ("the agencies") issued for public comment proposals to use credit ratings from nationally recognized statistical rating organizations to determine the capital treatment for recourse obligations, direct credit substitutes, and senior asset-backed securities (62 FR 59944, November 5, 1997). In February 2000, based on the public comments, the Board and the other agencies issued for further comment a proposal to clarify and revise the regulatory capital treatment of securitized transactions (65 FR 12320, March 8, 2000). The proposal would treat recourse obligations and direct credit substitutes more consistently than the agencies' current risk-based capital standards. It is not expected that the proposals will have a significant economic impact on small institutions.
In November 2001, following review of the public comments, the Board and the other agencies adopted the proposed treatment for recourse and direct credit substitutes substantially as proposed in March 2000, except that the managed asset capital charge was not included in the final rule (66 FR 59614, November 29, 2001). Thus, banks and bank holding companies will be able to use the external credit ratings from nationally recognized statistical rating organizations to determine the capital treatment for recourse obligations, direct credit substitutes, and asset- and mortgage-backed securities. The Board also adopted final amendments to Regulations H and Y to revise its risk-based and leverage capital guidelines to address the treatment of residual interests for all state member banks and bank holding companies (Docket Number: R-1080; RIN 7100-AC77). The final rule combined the capital treatment for residual interests into a single final rule on the Capital Treatment of Recourse, Direct Credit Substitutes and Residual Interests in Asset Securitizations.
| Action | Date | FR Cite |
| Board requested comment | 11/05/97 | 62 FR 59944 |
| Board requested additional comment | 03/08/00 | 65 FR 12320 |
| Board adopted proposals | 11/29/01 | 66 FR 59614 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Thomas R. Boemio, Senior Supervisory Financial Analyst, Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-2982
RIN:
7100-AB77
3909. 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-1097)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 1844(b); 12 USC 329; 12 USC 1843(k)(7); 12 USC 3906 to 3909
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 225
Legal Deadline:
None
Abstract:
In January 2002, following review of the public comments, the Board, jointly with the Comptroller of the Currency and the Federal Deposit Insurance Corporation, adopted a final rule governing the regulatory capital treatment of equity investments in nonfinancial companies. The amendments apply symmetrically to bank holding companies and banks, and apply to equity investments in nonfinancial companies made under the merchant banking authority of the Gramm-Leach-Bliley Act, section 4(c)(6) or 4(c)(7) of the Bank Holding Company Act, section 211.8(c)(3) of the Board's Regulation K, section 302(b) of the Small Business Investment Act of 1958, or section 24 of the Federal Deposit Insurance Act (other than section 24(f)) (67 FR 3784, January 25, 2002). The final rule applies to a series of marginal capital charges on covered equity investments that increase with the level of a banking organization's overall exposure to equity investments relative to the organization's Tier 1 capital. The new marginal charges do not apply to covered investments made prior to March 13, 2000. The new charges also do not apply to investments made in or through small business investment companies to the extent such investments, in the aggregate, represent less than 15 percent of the banking organization's Tier 1 capital.
The final rule is substantially similar to the proposal issued in February 2001 (66 FR 10212, February 14, 2001). For the reasons discussed in the final rule, the Board does not believe the final rule will have a significant economic impact on small entities.
| Action | Date | FR Cite |
| Board requested comment on proposed rules | 03/28/00 | 65 FR 16460 |
| Board requested comment on new capital proposal | 02/14/01 | 66 FR 10212 |
| Board adopted proposal | 01/25/02 | 67 FR 3784 |
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
Agency Contact:
Kieran Fallon, Senior Counsel, Federal Reserve System, Legal Division
Phone: 202 452-5270
RIN:
7100-AC65
3910. 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-1080)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 24; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 248(a); 12 USC 248(c); 15 USC 78b; 15 USC 781(b); 15 USC 781(g); 15 USC 781(i); 31 USC 5318; 42 USC 4012a; 42 USC 4104a; ...
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208; 12 CFR 225
Legal Deadline:
None
Abstract:
In September 2000, the Board issued for public comment proposed amendments to Regulations H and Y to amend the Tier 1 leverage and risk-based capital guidelines for residual interests for all state member banks and bank holding companies (65 FR 57993, September 27, 2000). The proposal would better align the capital requirements with the risks associated with such assets. It is not expected that the amendments will have a significant economic impact on a substantial number of small institutions.
In November 2001, following review of the public comments, the Board adopted the proposed amendments to its risk-based and leverage capital guidelines to address the treatment of residual interests for all state member banks and bank holding companies (66 FR 59614, November 29, 2001). The final rule combined the capital treatment for residual interests into a single final rule on the Capital Treatment of Recourse, Direct Credit Substitutes and Residual Interests in Asset Securitizations (Docket Number: R-1055; RIN 7100-AB77). The amendments were adopted substantially as proposed, except that the Tier 1 concentration limit in the final rule is imposed on a subset of residual interests. The final rule also limits the inclusion of interest-only strips that serve in a credit-enhancing capacity, whether retained or purchased. Any amounts of such credit-enhancing interest-only strips that exceed the 25 percent of the Tier 1 capital limitation must be deducted from the bank or bank holding company's Tier 1 capital.
| Action | Date | FR Cite |
| Board requested comment | 09/27/00 | 65 FR 57993 |
| Board adopted proposal | 11/29/01 | 66 FR 59614 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Arleen Lustig, Supervisory Financial Analyst, Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-2987
RIN:
7100-AC77
3911. 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-1084)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 24; 12 USC 36; 12 USC 92(a); 12 USC 93(a); 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 611; 12 USC 1814; 12 USC 1816; 12 USC 1818; ...
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 208; 12 CFR 225
Legal Deadline:
None
Abstract:
In November 2000, the Board issued for public comment an advance notice of proposed rulemaking on the possible development of a simplified capital framework for non-complex banking organizations (65 FR 66193, November 3, 2000). The options outlined in the proposal include a simplified risk-based framework, a leverage ratio-only approach, or a modified leverage ratio approach. Such a framework could relieve the regulatory burden associated with the existing capital rules for many non-complex domestic banking institutions. The main objective of this proposal was to obtain preliminary views from the industry and the public regarding such a framework. Further Board action on this proposal is not expected.
| Action | Date | FR Cite |
| Board requested comment | 11/03/00 | 65 FR 66193 |
| Further Board action not expected | 02/28/02 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
David Adkins, Supervisory Financial Analyst, Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-5259
RIN:
7100-AC80
3912. REGULATION: K — INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-0994)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
12 USC 221 et seq; 12 USC 248(i); 12 USC 248(k); 12 USC 1818; 12 USC 1835a; 12 USC 1841 et seq; 12 USC 3101 et seq; 12 USC 3109 et seq
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 211
Legal Deadline:
None
Abstract:
In December 1997, consistent with section 303 of the Riegle Community Development and Regulatory Improvement Act of 1994, the International Banking Act of 1978, and section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996, the Board reviewed and proposed for public comment a number of changes to Regulation K, which governs international banking operations (62 FR 68424, December 31, 1997). In October 2001, following review of the public comments, the Board adopted final revisions to Regulation K (66 FR 54345, October 26, 2001). In acting on the proposals, the Board took into account changes to the statutory framework governing banks and bank holding companies enacted in 1999 in the Gramm-Leach-Bliley Act (GLB Act). The final rule is not expected to have a significant economic impact on a substantial number of small entities.
Subpart A of Regulation K governs the foreign investments and activities of member banks, bank holding companies and Edge corporations. As adopted, the final rule streamlined foreign branching procedures and expanded the range of permissible activities for branches. The final rule also adopted, in part, the proposed liberalization of equity underwriting and dealing operations, and the general consent authority for bank holding companies was substantially increased. In light of enactment of the GLB Act, which grants financial holding companies merchant banking authority, the final rule did not include significant expansion of the ability to make venture capital investments outside of the United States under Regulation K.
Subpart B of Regulation K governs U.S. activities of foreign banking organizations. The final rule adopted the proposals to streamline certain application procedures applicable to foreign banks seeking to expand their operations in the United States and to implement interstate banking legislation. The Board adopted, in part, the proposed changes to the provisions regarding the qualifications of foreign banking organizations for certain exemptions in the Bank Holding Company Act. The Board also amended Regulation K to implement provisions of the GLB Act regarding representative offices and upgrading interstate agencies to branches. The final rule also incorporates a number of technical and clarifying amendments to Subparts A and B.
Subpart C governs export trading companies. The amendments to Subpart C streamlining the notice process for investment in export trading companies were adopted as proposed. The Board also proposed for public comment technical changes to Subpart D, International Lending Supervision (Docket Number: R-1114; 66 FR 54399, October 26, 2001)
| Action | Date | FR Cite |
| Board requested comment | 12/31/97 | 62 FR 68424 |
| Board adopted proposals | 10/26/01 | 66 FR 54346 |
Regulatory Flexibility Analysis Required:
No
Government Levels Affected:
None
Agency Contact:
Kathleen M. O'Day, Associate General Counsel, Federal Reserve System, Legal Division
Phone: 202 452-3786
RIN:
7100-AC47
3913. REGULATION: Z — TRUTH IN LENDING (DOCKET NUMBER: R-1090)
Agency:
Federal Reserve System (FRS)
Priority:
Substantive, Nonsignificant
Legal Authority:
15 USC 1601 et seq
CFR Citation: (To search for a specific CFR, visit the Code of Federal Regulations.)
12 CFR 226
Legal Deadline:
None
Abstract:
In December 2000, the Board issued for public comment proposed amendments to the provisions of Regulation Z that implement the Home Ownership and Equity Protection Act (HOEPA) (65 FR 81438, December 26, 2000). HOEPA was enacted in response to evidence of abusive lending practices in the home-equity lending market. In December 2001, following review of the public comments, the Board adopted final amendments that are expected to benefit the public by furthering HOEPA's protections against abusive lending practices (66 FR 65604, December 20, 2001). The amendments (1) broaden the scope of mortgage loans subject to HOEPA; (2) prohibit certain acts and practices in connection with home-secured loans, including rules to restrict creditors from engaging in repeated refinancings of their own HOEPA loans over a short period of time; (3) strengthen HOEPA's prohibition against extending credit without regard to consumers' repayment ability; and (4) enhance disclosures for HOEPA-covered loans that consumers receive before closing. Based on available data at the time the amendments were adopted, the Board was unable to determine whether the final rule will have a significant impact on a substantial number of small entities.
| Action | Date | FR Cite |
| Board requested comment | 12/26/00 | 65 FR 81438 |
| Board adopted proposal | 12/20/01 | 66 FR 65604 |
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
Agency Contact:
Jane Ahrens, Senior Counsel, Federal Reserve System, Division of Consumer and Community Affairs
Phone: 202 452-2412
RIN:
7100-AC83