District Circular Letters
July 15, 1998
REGULATION I:
REDUCTION OF REGULATORY BURDEN
To Member and Nonmember Banks,
Bank Holding Companies
and Others Concerned
in the Twelfth Federal Reserve District
Final Rule Updating and Simplifying Regulation (Docket
R-0966) (PDF)
The Federal Reserve Board is amending its Regulation I regarding the
issue and cancellation of Federal Reserve Bank Capital Stock in order
to reduce regulatory burden and simplify and update requirements. The
amendments modernize Regulation I in accordance with section 303 of the
Riegle Community Development and Regulatory Improvement Act of 1994.
The final rule is effective October 1, 1998.
In general, the amendments simplify, modernize, and condense the Regulation,
reflect the replacement of share certificates by a book-entry system,
and codify Board and staff interpretations. The amendments also delete
the references to specific forms, many of which were incorrect because
the forms no longer exist or no longer have the same identification numbers.
Finally, the amendments address the method of computing accrued dividends
on Reserve Bank capital stock and on deferring changes in Reserve Bank
capital stock positions to reflect small changes in member bank capital
stock and surplus.
In addition, the final Regulation
- makes clear that Reserve Bank stock is issued to member banks in
organization as of their opening for business and not before;
- incorporates the Board's final rule on relocation of member banks
and makes appropriate adjustments to the section on Cancellation of
Reserve Bank Stock;
- carries over adjustments in Reserve Bank stock positions that do
not exceed the lesser of 15 percent or 100 shares until the year-end
report of condition;
- clarifies the treatment of gains or losses on securities available
for sale and foreign exchange translation adjustments; and
- adopts a 360-day year of 30-day months for dividend accruals.
Copies
Copies of the Board's notice (Docket
R-0966) (PDF) are available from our Corporate
Services Department. To request copies to be sent via mail, please call
(415) 974-2748. To request copies to be sent via fax,
please call (415) 974-3333, and specify document number
4155.
Additional Information
For additional information regarding Regulation I, please contact our
Accounting Department, at (415) 974-2175.
FEDERAL RESERVE BANK OF SAN FRANCISCO
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