FR2030_2056_2086_2087_2083_20150202_omb

Supporting Statement for the
Federal Reserve Membership Application (FR 2083-2083C; OMB No. 7100-0046)
and the Federal Reserve Bank Stock Applications
(FR 2030, FR 2030a, FR 2056, FR 2086, FR 2086a, and FR 2087; OMB No. 7100-0042)
Summary
The Board of Governors of the Federal Reserve System, under delegated authority from
the Office of Management and Budget (OMB), proposes to extend for three years, without
revision, the following application forms: 1
•

Application for Membership in the Federal Reserve System (FR 2083-2083C; OMB No.
7100-0046);

•

Federal Reserve Bank Stock Applications (OMB No. 7100-0042):
•
Application for Adjustment in the Holding of Federal Reserve Bank Stock (FR 2056),
•
Member Banks Converting into or Merging into Nonmember Banks (FR 2086a),
•
De Novo National Banks (FR 2030),
•
Nonmember State Banks Converting into National Banks (FR 2030a),
•
Member Banks in Voluntary Liquidation (FR 2086), and
•
Insolvent Member Banks (FR 2087).

The application for membership (FR 2083) is a required one-time submission
that collects the information necessary for the Federal Reserve to evaluate the statutory criteria,
outlined in section 9 of the Federal Reserve Act, for admission of a new or existing state bank
into membership in the Federal Reserve System. The total annual reporting burden for the
membership application form is estimated to be 184 hours.
The FR 2030, FR 2030a, FR 2056, FR 2086, FR 2086a, and FR 2087 stock application
forms are required by the Federal Reserve Act and Regulation I. These application forms must
be used by a new or existing member bank (including a national bank) to request the issuance,
adjustment in, or cancellation of Federal Reserve Bank stock. The application forms must
contain certain certifications by the Applicant as well as certain other financial and shareholder
data that is needed by a Reserve Bank to process the request. The total annual reporting burden
for the stock application forms is estimated to be 734 hours.
Additional information about the paperwork burden associated with this information
collection, including statutory and regulatory history, a description of the requirements, and how
the estimated total annual burden was calculated, is discussed below.
Background and Justification
A state-chartered bank may become a member of the Federal Reserve System by filing an
application and having the Board of Governors determine that the bank meets the statutory
1

Available on the Board of Governors of the Federal Reserve System’s public website:
http://www.federalreserve.gov/apps/reportforms/default.aspx

standards for membership. National banks automatically become members of the Federal
Reserve System upon being chartered by the Office of the Comptroller of the Currency.
When acting upon a membership application filed by a state-chartered bank, the Federal
Reserve is required under Section 9 of the Federal Reserve Act to consider the financial
condition of the applying bank, the general character of its management, and whether or not the
corporate powers to be exercised are consistent with the Federal Reserve Act. The other relevant
criteria established by the statute (as well as by Regulation H) include the adequacy of capital,
financial history and condition, future earnings prospects, and the convenience and needs of the
community(ies) to be served. Information requested of a new bank (such as deposits and
earnings projections, proposed premises, and the background of proposed bank officials) is not
available from any source but the Applicant, and certain information regarding the operation of
an existing bank is also not available from any other source. The information requested in the
FR 2083 application is necessary for the Federal Reserve to be able to fulfill its responsibilities
with respect to admitting a bank into membership. The Federal Reserve uses the information
collected through the application form, along with other Federal Reserve System-generated data,
to determine whether the Applicant bank meets the standards for approval.
When a bank receives approval for membership in the Federal Reserve System, the bank
agrees to certain conditions of membership that are contained in the approval letter. At the same
time, the bank is advised that, under Section 5 of the Federal Reserve Act (as well as
Regulation I), the bank must subscribe to the capital stock of the Federal Reserve Bank in whose
district the head office of the member bank is located. The Federal Reserve Bank stock
application forms are necessary to obtain current information on the member bank’s capital and
surplus and to document the bank’s request for an increase or decrease in its holdings of Federal
Reserve Bank stock. This information is also used to verify that a request has been duly
authorized and to prevent unauthorized requests for issuance or cancellation of Federal Reserve
Bank stock. The application forms are used exclusively by the applying banks and the Federal
Reserve Banks. The information collected on these application forms is not available from any
other source.
Description of Information Collection
Federal Reserve Membership Application
The four individual application forms in the FR 2083 series (membership application and
relevant attachments) are all one-time submissions that are used by organizing (de novo) or
existing state-chartered banks to apply for membership in the Federal Reserve System:
FR 2083

Cover sheet, with general information and instructions detailing the information
to be submitted according to the type of applicant bank.

FR 2083A

Application form for the purchase of Federal Reserve Bank stock by state banks
(except mutual savings banks) and by national banks converting into state
member banks.
2

FR 2083B

Application form for the purchase of Federal Reserve Bank stock by mutual
savings banks.

FR 2083C

Certificate of Organizers or Directors certifying that the information being
submitted is true and complete, and the proposed capital is not impaired.
Federal Reserve Bank Stock Applications

Any national bank wanting to purchase stock in the Federal Reserve System, any member
bank wanting to increase or decrease its Federal Reserve Bank stock holdings, or any bank
wanting to cancel its stock holdings must file an application with the appropriate Federal Reserve
Bank. The application forms for the initial subscription of Federal Reserve Bank stock filed by
organizing national banks and nonmember state banks converting to national banks (FR 2030
and 2030a, respectively) and the application forms for the cancellation of Federal Reserve Bank
stock filed by liquidating member banks, member banks merging or consolidating with
nonmember banks, and insolvent member banks (FR 2086, 2086a, and 2087, respectively)
require one or more of the following:
•
•
•
•

a resolution by the applying bank’s board of directors authorizing the transaction,
an indication of the capital and surplus of the bank as of the date of application,
a certification (by official signatures) of the resolution, and
an indication of the number of shares and dollar amount of the Federal Reserve Bank stock to
be purchased or canceled.

State-chartered banks and mutual savings banks do not use the FR 2030 or FR 2030a
applications to purchase stock because the required information is collected on the FR 2083
application forms and received as part of the complete membership application.
The application form for an interim adjustment in a member bank’s holdings of Federal
Reserve Bank stock (FR 2056) requires:
•
•

an indication of the capital and surplus of the bank as of the date of application and
an indication of the number of shares held and the number of shares to be acquired or
canceled.

A completed application form must be submitted for each required adjustment. Any
member bank must use the FR 2056 to correct a discrepancy between the amount of Federal
Reserve Bank stock required to be held and the amount actually held by the member bank. The
latter is determined by the Reserve Bank through its monitoring of the bank’s capital accounts
reported quarterly on the Consolidated Reports of Condition and Income (Call Report) (FFIEC
031 and 041; OMB No. 7100-0036). The Federal Reserve Bank stock applications are
distributed by the Federal Reserve Banks and the information collected enables them to account
for required subscription payments to the System and for dividends paid by the System on any
outstanding stock.
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Time Schedule for Information Collection
Submission of these applications is event generated. The FR 2083 is filed by a new or
existing bank when it wishes to become a member of the Federal Reserve System. Membership
applications are usually acted upon within 60 days after filing. Expedited membership
applications are usually acted upon within 15 days after filing. The FR 2086, 2086a, and 2087
are usually submitted 30 calendar days after the event triggering the need for cancellation of a
bank’s Federal Reserve Bank stock. The FR 2056 must be filed promptly after the first Call
Report that reflects the increase or decrease or as necessitated by a merger or other consolidation.
The FR 2030 must be submitted by a national bank while in the process of organizing and the
FR 2030a must be submitted by a state nonmember bank while in the process of converting to a
national bank. These applications are usually acted upon under delegated authority by the
Federal Reserve Banks within 2 to 4 days after filing. The information in the applications is not
published.
Legal Status
The Board’s Legal Division has determined that the applications are authorized as
follows:
•
•
•
•
•
•

FR 2030 and FR 2030a: Section 2 of the Federal Reserve Act (12 U.S.C. §§ 222 and 282)
and Sections 9 and 11(a) of the Federal Reserve Act (12 U.S.C. §§ 248(a) and 321);
FR 2056: Section 5 of the Federal Reserve Act (12 U.S.C. § 287) and Sections 11(a) and (i)
of the Federal Reserve Act (12 U.S.C. § 248(a) and (i));
FR 2083: Section 9 of the Federal Reserve Act (12 U.S.C. §§ 321, 322, and 333);
FR 2086: Section 5 of the Federal Reserve Act (12 U.S.C. § 287) and Sections 11(a) and (i)
of the Federal Reserve Act (12 U.S.C. § 248(a) and (i));
FR 2086a: Section 9 of the Federal Reserve Act (12 U.S.C. § 321), Section 5 of the Federal
Reserve Act (12 U.S.C. § 287), and Section 11(a) of the Federal Reserve Act (12 U.S.C. §
248(a)); and
FR 2087: Section 6 of the Federal Reserve Act (12 U.S.C. § 288) and Sections 11(a) and (i)
of the Federal Reserve Act (12 U.S.C. § 248 (a) and (i)).

The information solicited in these application forms is not considered confidential, but
applicants may request that parts of the forms be kept confidential. Any request for confidential
treatment of information must be accompanied by a detailed justification for confidentiality. For
example, a justification for confidential treatment of business information under exemption 4 of
the Freedom of Information Act (FOIA), 5 U.S.C. § 552(b)(4), should demonstrate that
substantial harm would result from public release of the information. Submissions of these forms
may also be exempt under exemption 6 of FOIA, 5. U.S.C. § 552(b)(6), if a submitter identifies
information of a personal nature the disclosure of which would result in a clearly unwarranted
invasion of personal privacy. Additionally, exemption 8 of FOIA, 5 U.S.C. § 552(b)(8) may
apply to the extent the reported information is contained in or related to examination reports.
Each request for confidentiality that is received by a submitter of these forms will need to be
reviewed on a case-by-case basis.
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Consultation Outside the Agency
On October 17, 2014, the Federal Reserve published a notice in the Federal Register (79
FR 62442) requesting public comment for 60 days on the extension, without revision, of the
applications. The comment period for this notice expired on December 16, 2011. The Federal
Reserve did not receive any comments. On January 21, 2015, the Federal Reserve published a
final notice in the Federal Register (80 FR 2932).
Estimate of Respondent Burden
As shown in the following table, the annual reporting burden for the membership
application is estimated to be 184 hours. The annual reporting burden for the bank stock
applications is estimated to be 734 hours. The current estimates are based on the average of the
number of applications filed in 2012 and 2013 and represent less than 1 percent of the total
Federal Reserve System reporting burden.

Membership Applications:
FR 2083, A, B, and C
Stock Applications:
FR 2030
FR 2030a
FR 2056
FR 2086
FR 2086a
FR 2087
Total Stock Applications
Total

Number
of
respondents

Annual
frequency

Estimated
Estimated
average hours annual burden
per response
hours

46

1

4.0

184

4
2
1333
45
79
1

1
1
1
1
1
1

0.5
0.5
0.5
0.5
0.5
0.5

2
1
667
23
40
1
734
918

The total annual cost to the public for the Federal Reserve membership and stock applications is
estimated to be $46,726. 2
Estimate of Cost to the Federal Reserve System
The estimated cost to the Federal Reserve System for the reports is negligible.
2

Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $18, 45% Financial Managers at
$61, 15% Lawyers at $63, and 10% Chief Executives at $86). Hourly rate for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
2013, www.bls.gov/news.release/ocwage.nr0.htm. Occupations are defined using the BLS Occupational
Classification System, www.bls.gov/soc/.

5

Sensitive Questions
These collections of information contain no questions of a sensitive nature, as defined by
OMB guidelines.

6