FRL_20230523_omb

Supporting Statement for the
Reporting and Recordkeeping Requirements Associated with Regulation L
(FR L; OMB No. 7100-0378)
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,
without revision, the Reporting and Recordkeeping Requirements Associated with Regulation L
(FR L; OMB No. 7100-0378). The Depository Institution Management Interlocks Act (DIMIA)
generally prohibits management officials from serving simultaneously with two unaffiliated
depository organizations (i.e., depository institutions and depository institution holding
companies), but allows for exemptions from the prohibition in certain circumstances. The FR L
information collection accounts for the reporting and recordkeeping requirements associated with
implementation of DIMIA. Respondents include state member banks (SMBs), bank holding
companies (BHCs), and savings and loan holding companies (SLHCs) that qualify for certain
exemptions.
The estimated total annual burden for the FR L is 14 hours. There is no formal reporting
form for this information collection.
Background and Justification
The FR L is associated with the Board’s Regulation L - Management Official Interlocks
(12 CFR Part 212), which implements the DIMIA for SMBs and BHCs, and Regulation LL Savings and Loan Holding Companies (12 CFR Part 238), which implements the DIMIA for
SLHCs. The Board’s Regulations L and LL include certain exceptions from the general
prohibition against simultaneous service by an individual as a management official with two
unaffiliated depository institutions or depository institution holding companies. In order to
implement these exceptions, both regulations contain certain reporting and recordkeeping
requirements, as discussed below. The information that is the subject of these requirements is not
available from other sources.
Description of Information Collection
Reporting Requirements
Under section 212.4(h) of Regulation L and section 238.94(h) of Regulation LL, there is
an exemption from the interlock prohibitions with respect to the service of a director of a
diversified SLHC, as defined by the Home Owners’ Loan Act, who also is a director of an
unaffiliated depository organization, if both the diversified savings and loan holding company
and the unaffiliated depository organization notify their appropriate federal depository
institutions regulatory agency at least 60 days before the dual service is proposed to begin and
the agency does not disapprove the dual service before the end of the 60-day period. Boardregulated respondents provide the notification to the appropriate Reserve Bank.

Recordkeeping Requirements
Under section 212.5 of Regulation L and section 238.95 of Regulation LL, there is an
exemption from the general interlock prohibitions for management interlocks between banking
organizations with small market shares. Each of these exemptions require that each depository
organization involved in the interlock must maintain records sufficient to support its
determination of eligibility for the exemption and must reconfirm that determination on an
annual basis.
Respondent Panel
The FR L panel comprises SMBs, BHCs, and SLHCs that qualify for the diversified
SLHC or small market share exemptions discussed above.
Frequency
The FR L is submitted and retained on an event-generated basis.
Time Schedule for Information Collection
The reporting and recordkeeping requirements are event-generated. Respondents relying
on section 212.4(h) of Regulation L and section 238.94(h) of Regulation LL notify their
appropriate federal regulatory agency at least 60 days before the dual service is proposed to
begin.
Public Availability of Data
No data collected through this information collection is made available to the public by
the Board.
Legal Status
The FR L is authorized by sections 205 and 209 of the DIMIA, as amended. Exempting a
director of a diversified SLHC who is also a director of an unaffiliated depository organization
from the DIMIA’s interlock prohibitions if both the SLHC and the unaffiliated depository
organization notify their appropriate federal regulatory agency at least 60 days before the dual
service is proposed to begin and no agency disapproves the dual service before the end of the 60day period (12 U.S.C. § 3205) and authorizing the Board to prescribe regulations carrying out the
DIMIA with respect to SMBs, BHCs, and SLHCs (12 U.S.C. § 3207). The FR L is required to
obtain a benefit.
Information submitted to the Board under the reporting requirements associated with the
FR L is not considered confidential unless an applicant requests confidential treatment in
accordance with the Board’s Rules Regarding Availability of Information.1 Requests for
confidential treatment of information are reviewed on a case-by-case basis. Information provided
1

12 CFR 261.17.

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to the Board under the FR L’s reporting requirements may be nonpublic commercial or financial
information, which is both customarily and actually treated as private by the respondent, which is
protected from disclosure pursuant to exemption 4 of the Freedom of Information Act (FOIA)
(5 U.S.C. § 552(b)(4)). Submissions to the Board under these requirements may also contain
personnel and medical files the disclosure of which would constitute a clearly unwarranted
invasion of personal privacy, which are protected under exemption 6 of the FOIA (5 U.S.C. §
552(b)(6)).
Information covered by the recordkeeping requirements associated with the FR L is
maintained at the relevant banking organization. The FOIA would therefore only be implicated if
the Board obtained such records as part of the examination or supervision of a banking
organization. In the event the records are obtained by the Board as part of an examination or
supervision of a financial institution, this information would be considered confidential pursuant
to exemption 8 of the FOIA, which protects information contained in “examination, operating, or
condition reports” obtained in the bank supervisory process (5 U.S.C. § 552(b)(8)). Information
covered by the FR L’s recordkeeping requirements may also be protected from disclosure under
exemption 4 or 6 of the FOIA, depending on the contents of the information (5 U.S.C. §§
552(b)(4) and (6)).
Consultation Outside the Agency
The Board consulted with the Federal Deposit Insurance Corporation and Office of the
Comptroller of the Currency, the other agencies with responsibilities related to these
requirements associated with DIMIA, to confirm alignment of the burden estimates.
Public Comments
On November 4, 2022, the Board published an initial notice in the Federal Register (87
FR 66704) requesting public comment for 60 days on the extension, without revision, of the
FR L. The comment period for this notice expired on January 3, 2023. The Board did not receive
any comments. The Board adopted the extension, without revision, of the FR L as originally
proposed. On March 30, 2023, the Board published a final notice in the Federal Register (88 FR
19145).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR L is 14 hours.
The estimated number of respondents for each portion of the information collection burden was
determined using the average of the total number of respondents from the previous two years.
These reporting and recordkeeping requirements represent less than 1 percent of the Board’s
total paperwork burden.

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FR L
Reporting
Sections 212.4(h)(1)(i) and
238.94(h)(1)(i)
Recordkeeping
Sections 212.5(b) and 238.95(b)
Total

Estimated
number of
respondents2

Estimated
annual
frequency

Estimated
Estimated
average hours annual burden
per response
hours

2

1

4

8

2

1

3

6
14

The estimated total annual cost to the public for the FR L is $928.3
Sensitive Questions
These collections of information contains 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 collecting and processing this
information collection is negligible.

2

Of these respondents, none are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $850 million in total assets), https://www.sba.gov/document/support-table-size-standards.
3
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 $22, 45% Financial Managers at
$80, 15% Lawyers at $79, and 10% Chief Executives at $118). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor Statistics (BLS), Occupational Employment and Wages,
May 2022, published April 25, 2023, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Standard Occupational Classification System, https://www.bls.gov/soc/.

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