FR2030_FR2030a_FR2056_FR2086_FR2086a_FR2087_FR2083_FR2083A_FR2083B_FR2083C_20191209_omb

Supporting Statement for the
Federal Reserve Membership Application
(FR 2083, FR 2083A, FR 2083B, and FR 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 (Board), under authority
delegated by the Office of Management and Budget (OMB), has extended for three years, with
revision, the following application reporting forms:
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Federal Reserve Membership Application (OMB No. 7100-0046), which is comprised of:
Application to the Board of Governors of the Federal Reserve System for Membership in
the Federal Reserve System (FR 2083),
Application for Federal Reserve Bank Stock (for use by state banks, except mutual
savings banks, and by national banks converting into state member banks) (FR 2083A),
Application for Federal Reserve Bank Stock (for use by mutual savings banks)
(FR 2083B), and
Certificate of Organizers or of Directors (FR 2083C); and
Federal Reserve Bank Stock Applications (OMB No. 7100-0042), which is comprised of:
Application for Federal Reserve Bank Stock (for use by new national banks) (FR 2030),
Application for Federal Reserve Bank Stock (for use by nonmember state banks
converting into national banks) (FR 2030a),
Application for Adjustment in the Holding of Federal Reserve Bank Stock (FR 2056),
Application for Cancellation of Federal Reserve Bank Stock (for use by member banks in
voluntary liquidation) (FR 2086),
Application for Cancellation of Federal Reserve Bank Stock (for use by member banks
converting into or merging into member or nonmember banks) (FR 2086a), and
Application for Cancellation of Federal Reserve Bank Stock (for use by insolvent
member banks) (FR 2087).

The Board adopted revisions to the FR 2083A, FR 2083B, FR 2030, FR 2030a, FR 2056,
FR 2086, FR 2086a, and FR 2087 to improve the clarity of the information requests and remove
items in the current forms that are no longer required in the application process. The Board did
not change the FR 2083 and FR 2083C forms as part of this process. The current estimated total
annual burden for the membership applications is 64 hours and for the stock applications is 589
hours, and would remain the same. The form and instructions are available on the Board’s public
website at https://www.federalreserve.gov/apps/reportforms/default.aspx.
Background and Justification
A state-chartered bank may become a member of the Federal Reserve System by filing an
application and having the Board determine that the bank meets the statutory 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 (OCC).
When acting upon an initial Federal Reserve membership application filed by a statechartered bank, the Federal Reserve is required under section 9 of the Federal Reserve Act
(FRA) to consider the financial condition of the applying bank, the general character of its
management, and whether the corporate powers to be exercised are consistent with the FRA. The
other relevant criteria established by the statute1 and by regulation2 include the adequacy of
capital, financial history and condition, future earnings prospects, and the convenience and needs
of the community or communities to be served. Information requested of a new or existing statechartered bank applying for Federal Reserve membership (such as deposits and earnings
projections, proposed premises, and the background of proposed bank officials) is not available
from any source other than the applicant. The information requested in the FR 2083 application
for membership is necessary for the Federal Reserve to be able to fulfill its responsibilities with
respect to evaluating a state-chartered bank for membership. The Federal Reserve uses the
information collected through the application form, along with other Federal Reserve Systemgenerated data, to determine whether the applicant bank meets the standards for approval.
The stock application forms (FR 2030, FR 2030a, FR 2056, FR 2086, FR 2086a, and
FR 2087) are authorized under the FRA and Regulation I - Issue and Cancellation of Federal
Reserve Bank Capital Stock (12 CFR 209). 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 are
needed by a Reserve Bank to process the request.
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 FRA,3 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 submitted by the applying banks to 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
Any state-chartered bank applying for membership in the Federal Reserve System must
file an application with the appropriate Federal Reserve Bank. The application forms for the
1

12 U.S.C. § 322.
Regulation H - Membership of State Banking Institutions in the Federal Reserve System (12 CFR 208).
3
12 U.S.C. § 287.
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initial subscription of Federal Reserve Bank stock filed by new or existing state-chartered bank
requires 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, and
 a certification (by official signatures) of the resolution.
The four individual application forms in the FR 2083 series (membership application and
relevant attachments) are all one-time submissions that are used by new or existing statechartered 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,
 FR 2083B - Application form for the purchase of Federal Reserve Bank stock by mutual
savings banks, and
 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, FR 2086a, and FR 2087,
respectively) may 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/or
 an indication of the number of shares and dollar amount of the Federal Reserve Bank
stock to be purchased or canceled.
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)
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(FFIEC 031, FFIEC 041, and FFIEC 051; 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, adjustment, or cancellation payments to and
from the System and for dividends paid by the System on any outstanding stock.
Adopted Revisions
The Board revised the FR 2083A, FR 2083B, FR 2030, FR 2030a, FR 2056, FR 2086,
FR 2086a, and FR 2087, and with the following updates:
1. Require the bank to include their American Bankers Association (ABA) number on page
one (FR 2083A, FR 2083B, FR 2030, FR 2030a, and FR 2056),4
2. Include the Chief Financial Officer (CFO) as an authorized signer (FR 2083A,
FR 2083B, FR 2030, FR 2030a, FR 2056, FR 2086, and FR 2086a),
3. Remove the SEAL and/or notarization requirement to allow for electronic retention of
documentation (FR 2083A, FR 2083B, FR 2030, FR 2030a, FR 2056, and FR 2087),
4. Include a note requiring that the signer of the form be included on the bank’s Official
Authorization List that is on file with the Federal Reserve (FR 2083A, FR 2083B,
FR 2030, FR 2030a, FR 2056, and FR 2086A),
5. Collect an additional data point “Less: retained earnings and accumulated other
comprehensive income if such combined amount is negative” on page one (FR 2030,
FR 2030a, similar to the FR 2056), and
6. On page one of FR 2056, make the following formatting changes:
a. Place a box around the area where member banks enter their Common stock,
Paid-in surplus and NRE figures (if applicable) and place a bolded “Member
banks” identifier at top left,
b. Place member bank and mutual savings bank calculations separated from each
other in order to alleviate each type of institution from using both areas, and
c. Insert the statement to, “round up only” to footnote 3.
The Board did not adopt any revisions to the FR 2083 and FR 2083C forms as part of this
process.
Time Schedule for Information Collection
Submission of these applications is event generated. The FR 2083 is filed by a new or
existing state member bank when it wishes to become a member of the Federal Reserve System.
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. The FR 2056 must be filed promptly after the first Call Report that reflects a
required adjustment in a bank’s holdings of Federal Reserve Bank stock or as necessitated by a
merger or other consolidation. The FR 2086, FR 2086a, and FR 2087 are usually submitted 30
calendar days after the event triggering the need for cancellation of a bank’s Federal Reserve
Bank stock.

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Adding the ABA number to these forms would aid the Board in processing these applications, because application
changes required are based on ABA number.

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Public Availability of Data
The information in the applications is not published.
Legal Status
The Federal Reserve Membership Application is authorized by section 9 of the FRA
(12 U.S.C. §§ 321, 322, 323, 329, and 333). The Federal Reserve Bank Stock Applications are
authorized pursuant to sections 9 and 11(a) of the FRA (12 U.S.C. §§ 321 and 248(a)).
Additionally, the FR 2030 and FR 2030a are specifically authorized by section 2 of the FRA
(12 U.S.C. §§ 222 and 282), the FR 2056, FR 2086, and FR 2086a are authorized by section 5 of
the FRA (12 U.S.C. § 287), and the FR 2087 is authorized by section 6 of the FRA (12 U.S.C.
288). The FR 2083 is required to obtain a benefit, while the FR 2030, FR 2030a, FR 2056,
FR 2086, FR 2086a, and FR 2087 are mandatory.
Individual respondents may request that information submitted to the Board in these
applications be kept confidential on a case-by-case basis. Such applications may contain
information related the business plans of the respondent. Under certain circumstances, this
information may be withheld under exemption 4 of the Freedom of Information Act (FOIA),
which protects privileged or confidential commercial or financial information (5 U.S.C. §
552(b)(4)). These applications may also contain information of a personal nature the disclosure
of which would result in a clearly unwarranted invasion of personal privacy, which may be
protected under exemption 6 of the FOIA (5 U.S.C. § 552(b)(6)). Additionally, exemption 8 of
the FOIA (5 U.S.C. § 552(b)(8)) may apply to the extent the reported information is contained in
or related to examination reports.
Consultation Outside the Agency
There has been no consultation outside the Federal Reserve System.
Public Comments
On June 6, 2019, the Board published an initial notice in the Federal Register
(84 FR 26415) requesting public comment for 60 days on the extension, with revision, of the
FR 2083, FR 2083A, FR 2083B, FR 2083C, FR 2030, FR 2030a, FR 2056, FR 2086, FR 2086a,
and FR 2087. The comment period for this notice expired on August 5, 2019. The Board did not
receive any comments. On September 10, 2019, the Board published a final notice in the Federal
Register (84 FR 47513).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the membership
applications is 64 hours and for the stock applications is 589 hours, and would remain the same
with the adopted revisions. These reporting requirements represent less than 1 percent of the
Board’s total paperwork burden.

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Annual
frequency

Estimated
average
hours
per response

16

1

4

4
7
1,068
10
86
1

1
1
1
1
1
1

0.5
0.5
0.5
0.5
0.5
0.5

Estimated
number of
respondents5
Federal Reserve Membership
Application
FR 2083, FR 2083A,
FR 2083B, and FR 2083C
Federal Reserve Bank Stock
Applications
FR 2030
FR 2030a
FR 2056
FR 2086
FR 2086a
FR 2087
Total

Estimated
annual
burden
hours

64

2
4
534
5
43
1
589

The estimated total annual cost to the public for the revised membership applications is
$3,686 and for the revised stock applications is $33,926.6
Sensitive Questions
These collections of information contain no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
The estimated cost to the Federal Reserve System for the reports is negligible.

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Of these respondents, 258 are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $550 million in total assets), https://www.sba.gov/document/support--table-size-standards.
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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 $19, 45% Financial Managers at
$71, 15% Lawyers at $69, and 10% Chief Executives at $96). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2018, published March 29, 2019, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Occupational Classification System, https://www.bls.gov/soc/.

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