REVISIONS TO THE REPORTS OF CONDITION AND INCOME
(CALL REPORTS) FOR 1995

       Contents

Deletions and Reductions in Detail                              2

Schedule RC-C, "Loans and Lease Financing Receivables," 
Part                                                     2

Other Deletions and Reductions in Detail                   3

New Items                                                       4

Additional Disclosures About Off-Balance Sheet Derivative
Financial Instruments                                    4

Schedule RC-L, "Off-Balance Sheet Items"              4

Schedule RI, "Income Statement"                      16

Schedule RC-R, "Risk-Based Capital"                  19

Other New Items                                           22

Schedule RC-B, "Securities"                          22

Schedule RC-M, "Memoranda"                           27

Schedule RC-O, "Other Data for Deposit Insurance
Assessments"                                       30

Schedule RI, "Income Statement"                      31

Other Instructional Changes                                    32

FASB Statement No. 114 on Loan Impairment                 32

Glossary Entry for "Loan Impairment"                 32

Glossary Entry for "Allowance for Loan and Lease
Losses"                                            34

Glossary Entry for "Troubled Debt Restructurings"    35

Glossary Entry for "Foreclosed Assets"               36

Offsetting of Amounts Associated With Conditional and
Exchange Contracts                                      37

Income From the Sale and Servicing of Mutual Funds and
Annuities                                               38

Instructional Changes Affecting Schedule RC-R, "Risk-Based
Capital"                                                39

Quarterly Average for Total Assets in Schedule RC-K       41

Other Instructional Clarifications                        42

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REVISIONS TO THE REPORTS OF CONDITION AND INCOME
(CALL REPORTS) FOR 1995

The revisions to the Reports of Condition and Income (Call
Report) that take effect as of March 31, 1995, are presented
below.  Unless otherwise indicated, each of the revisions applies
to all four versions of the report forms (FFIEC 031, 032, 033,
and 034).  Samples of the revised schedules, or portions thereof,
generally from the FFIEC 034 set of forms, are shown to
illustrate the specific changes in reporting requirements and are
followed by the relevant instructions.  For the March 31, 1995,
report date, a reasonable estimate may be provided for any new or
revised item for which the requested information is not readily
available.  Also presented below are certain other revisions to
the Call Report instructions.

DELETIONS AND REDUCTIONS IN DETAIL

The following deletions and reductions in detail will be made to
the Call Report in 1995.

Schedule RC-C, "Loans and Lease Financing Receivables," Part I

The level of detail with which restructured loans and leases that
are in compliance with modified terms are reported in the
memoranda section of Schedule RC-C will be reduced.  For all
banks, the current item or items for real estate loans will be
retained, but the various other items for loan categories other
than real estate will be combined into a single item for "All
other loans and all lease financing receivables."  In addition,
banks with foreign offices or with $300 million or more in total
assets that file the FFIEC 031 and 032 report forms will also
report a single total for their restructured commercial loans to
and their restructured leases of non-U.S. addressees.

The revised memorandum items are shown below.

FFIEC 031 and 032:
(NOTE:  This illustration is from the FFIEC 031 set of forms. 
Column B does not appear on the FFIEC 032 set of forms.)FFIEC 033 and 
034:
(NOTE:  Restructured loan and lease data are reported in
Memorandum item 1 on the FFIEC 034 and in Memorandum item 2 on
the FFIEC 033.)

Other Deletions and Reductions in Detail

Call Report items in the seven following areas would be deleted:

(1)  Schedule RC-R, item 3, "Total qualifying capital allowable
under the risk-based capital guidelines."  While total risk-based 
capital would no longer be reported, banks with assets
of less than $1 billion would still use their total capital
figure in the calculation in Schedule RC-R, item 1, which
determines the extent to which the schedule must be
completed.  The amount of a bank's Tier 1 and total risk-based 
capital, as calculated by the banking agencies, will continue to be disclosed 
on the Uniform Bank Performance Report.

(2)  The quarterly average of "Obligations (other than securities
and leases) of states and political subdivisions in the
U.S." in Schedule RC-K, item 6.a.(6) on the FFIEC 031,
item 6.f on the FFIEC 032, and Memorandum item 1 on the
FFIEC 033.  This average has not been collected from banks
with less than $100 million in assets that file the FFIEC
034 report form.

(3)  The four components of mandatory convertible debt, net of
common or perpetual preferred stock dedicated to redeem the
debt, in Schedule RC-M, items 7.a through 7.d on the FFIEC
031 and 032, items 6.a through 6.d on the FFIEC 033, and
items 8.a through 8.d on the FFIEC 034.  The existing item
for the total amount of mandatory convertible debt, net of
dedicated stock (item 7.e on the FFIEC 031 and 032, item 6.e
on the FFIEC 033, and item 8.e on the FFIEC 034), would be
retained.

(4)  The year-to-date reconcilement of the allocated transfer
risk reserve in Schedule RI-B, Part II.  This reconcilement
has been collected only from banks with foreign offices or
with total assets of $300 million or more that file the
FFIEC 031 or 032 report forms.  The amount of this reserve
and any provisions for allocated transfer risk would
continue to be reported by all banks on the Call Report
balance sheet (Schedule RC) and income statement (Schedule
RI), respectively.

(5)  The quarterly reconcilement of the agricultural loan loss
deferral account in Schedule RC-M, items 10.a through 10.e. 
This reconcilement has been collected only from banks with
total assets of less than $100 million that file the FFIEC
034 report.  The balance in the loss deferral account would
continue to be reported on the Call Report balance sheet
(Schedule RC).

(6)  Recoveries of "Special-Category Loans" in Schedule RI-B,
Part I, Memorandum item 1 on the FFIEC 031 and 032,
Memorandum item 3 on the FFIEC 033, and Memorandum item 2 on
the FFIEC 034.  This item has been collected from national
banks only.

(7)  The yes-no question on "Personnel changes among the three
senior officers of the bank during the quarter" in
Schedule RC-M, item 6 on the FFIEC 034.  This item has been
completed only by banks with total assets of less than $100
million that file the FFIEC 034 report form.

NEW ITEMS

New items will be added to the Call Report forms beginning March
31, 1995, to disclose additional information about off-balance
sheet derivative financial instruments (e.g., futures, forwards,
options, and swaps).  More specifically, in Schedule RC-L, 
"Off-Balance Sheet Items," the information currently collected from
all banks on the notional amounts or par values of derivatives
will be expanded.   Banks that file the FFIEC 031, 032, and 033
report forms will begin to disclose the fair values of their
derivative contracts in Schedule RC-L.  These banks will also
provide a breakdown of their trading revenues and disclose the
impact on income of off-balance sheet derivatives held for
purposes other than trading in new memorandum items in Schedule
RI, "Income Statement."  The reporting of data related to the
current credit exposure and potential future credit exposure of
derivatives in the memorandum section of Schedule RC-R, "Risk-Based 
Capital," has also been revised.

Other new items will provide data on investments in "high-risk
mortgage securities" and "structured notes," sales of proprietary
mutual funds and annuities, certain reciprocal demand balances
needed for deposit insurance assessment purposes, and the date as
of which the reporting bank was acquired  in a transaction in
which push down accounting has been applied.  In addition, the
reporting of mortgage-backed securities in Schedule RC-B,
"Securities," and certain other schedules has been revised.

For a further explanation of these upcoming changes, please refer
to Financial Institutions Letter FIL-69-94, dated November 1,
1994.

Additional Disclosures About Off-Balance Sheet Derivative
Financial Instruments

Schedule RC-L, "Off-Balance Sheet Items"

At present, all banks report the notional amount or par value of
their interest rate, foreign exchange rate, and other commodity
and equity contracts in items 11, 12, and 13 of Schedule RC-L,
respectively.  The existing items will be expanded to separate
exchange-traded contracts from over-the-counter contracts and to
separate equity derivative contracts from commodity and other
contracts.  These data will be reported in a four-column matrix
format in new items 14.a through 14.e.  Spot foreign exchange
contracts, which have been included with foreign exchange
derivative contracts, will now be reported separately in a new
item 11.  Existing Schedule RC-L items 14 and 15 for "All other
off-balance sheet liabilities" and "All other off-balance sheet
assets," respectively, will be renumbered as items 12 and 13.

In addition, for each of the four types of underlying risk
exposure (i.e., interest rate, foreign exchange, equity
derivative, and commodity and other), all banks will separately
report the total notional amount or par value of contracts held
for trading and held for purposes other than trading in new
Schedule RC-L items 15 and 16, respectively, with the latter
further divided between contracts that are marked to market for
Call Report purposes and those that are not.

For banks that file the FFIEC 031, 032, or 033 report forms,
Schedule RC-L will also be expanded to include gross fair value
data for derivatives by underlying risk exposure in new item 17. 
This fair value information will not be collected from small
banks that file the FFIEC 034 report forms.

The sample of Schedule RC-L, items 11 through 16, shown below is
from the FFIEC 034 report forms.  The sample of Schedule RC-L,
item 17, shown below is from the FFIEC 031 report forms.  Item 17
is not applicable to banks that file the FFIEC 034 report forms.

NOTE:  Schedule RC-L, item 17, below, is not applicable to banks
that file the FFIEC 034 report forms.

Instructions for Schedule RC-L, items 11 and 14 through 17:

Item 11, Spot foreign exchange contracts.  Report the gross
amount (stated in U.S. dollars) of all spot contracts committing
the reporting bank to purchase foreign (non-U.S.) currencies and
U.S. dollar exchange that are outstanding as of the report date. 
All transactions within the consolidated bank should be reported
on a net basis.

A spot contract is an agreement for the immediate delivery,
usually within two business days, of a foreign currency at the
prevailing cash market rate.  Spot contracts are considered
outstanding (i.e., open) until they have been cancelled by
acquisition or delivery of the underlying currencies.

Only one side of a spot foreign exchange contract is to be
reported.  In those transactions where foreign (non-U.S.)
currencies are bought or sold against U.S. dollars, report only
that side of the transaction that involves the foreign (non-U.S.)
currency.  For example, if the reporting bank enters into a spot
contract which obligates the bank to purchase U.S. dollar
exchange against which it sells deutsche marks, then the bank
would report (in U.S. dollar equivalent values) the amount of
deutsche marks sold in this item.  In cross-currency spot foreign
exchange transactions, which involve the purchase and sale of two
non-U.S. currencies, only the purchase side is to be reported (in
U.S. dollar equivalent values).

Item 14, Gross amounts (e.g., notional amounts) of off-balance
sheet derivatives.  Report in the appropriate column and subitem
the gross par value (stated in U.S. dollars) (e.g., for futures,
forwards, and option contracts) or the notional amount (stated in
U.S. dollars) (e.g., for forward rate agreements and swaps), as
appropriate, of all off-balance sheet contracts that are related
to the following four types of underlying risk exposures: 
interest rate, foreign exchange, equity, and commodity and other. 
Contracts with multiple risk characteristics should be classified
based upon the predominant risk characteristics at the
origination of the derivative.

The notional amount or par value to be reported for an 
off-balance-sheet derivative contract with a multiplier component is
the contract's effective notional amount or par value.  For
example, a swap contract with a stated notional amount of
$1,000,000 whose terms called for quarterly settlement of the
difference between 5% and LIBOR multiplied by 10 has an effective
notional amount of $10,000,000.

All transactions within the consolidated bank should be reported
on a net basis.  No other netting of contracts is permitted for
purposes of this item.  Therefore, do not net:  (1) obligations
of the reporting bank to purchase from third parties against the
bank's obligations to sell to third parties, (2) written options
against purchased options, or (3) contracts subject to bilateral
netting agreements.  

For each column, the sum of items 14.a through 14.e must equal
the sum of items 15, 16.a, and 16.b.

Column Instructions

Column A, Interest Rate Contracts:  Interest rate contracts
are contracts related to an interest-bearing financial
instrument or whose cash flows are determined by referencing
interest rates or another interest rate contract (e.g., an
option on a futures contract to purchase a Treasury bill). 
These contracts are generally used to adjust the bank's
interest rate exposure or, if the bank is an intermediary, the
interest rate exposure of others.  Interest rate contracts
include single currency interest rate swaps, basis swaps,
forward rate agreements, and interest rate options, including
caps, floors, collars, and corridors.

Exclude contracts involving the exchange of one or more
foreign currencies (e.g., cross-currency swaps and currency
options) and other contracts whose predominant risk
characteristic is foreign exchange risk, which are to be
reported in column B as foreign exchange contracts.  Also
exclude commitments to purchase and sell when-issued
securities which are to be reported in Schedule RC-L, item 10.

Do not report transactions involving regular way settlements,
that is, cash market transactions that are settled in one
business day for U.S. Treasury and Government agency and
corporation securities (other than Government-guaranteed
mortgage pass-through certificates), five business days for
municipal and corporate securities, and up to 60 days for
mortgage-backed securities.  Cash market transactions with
settlement periods that exceed regular way settlement time
limits must be reported as forward contracts in Schedule RC-L,
item 14.b.

Column B, Foreign Exchange Contracts:  Foreign exchange
contracts are contracts to purchase foreign (non-U.S.)
currencies and U.S. dollar exchange in the forward market,
i.e., on an organized exchange or in an over-the-counter
market.  A purchase of U.S. dollar exchange is equivalent to a
sale of foreign currency.  Foreign exchange contracts include
cross-currency interest rate swaps where there is an exchange
of principal, forward foreign exchange contracts (usually
settling three or more business days from trade date), and
currency futures and currency options.  Exclude spot foreign
exchange contracts which are to be reported in Schedule RC-L,
item 11.

Only one side of a foreign currency transaction is to be
reported.  In those transactions where foreign (non-U.S.)
currencies are bought or sold against U.S. dollars, report
only that side of the transaction that involves the foreign
(non-U.S.) currency.  For example, if the reporting bank
enters into a futures contract which obligates the bank to
purchase U.S. dollar exchange against which it sells deutsche
marks, then the bank would report (in U.S. dollar equivalent
values) the amount of deutsche marks sold in Schedule RC-L,
item 14.a.  In cross-currency transactions, which involve the
purchase and sale of two non-U.S. currencies, only the
purchase side is to be reported.

All amounts in column B are to be reported in U.S. dollar
equivalent values.

Column C, Equity Derivative Contracts:  Equity derivative
contracts are contracts that have a return, or a portion of
their return, linked to the price of a particular equity or to
an index of equity prices, such as the Standard and Poor's
500.

The contract amount to be reported for equity derivative
contracts is the quantity, e.g., number of units, of the
equity instrument or equity index contracted for purchase or
sale multiplied by the contract price of a unit.

Column D, Commodity and Other Contracts:  Commodity contracts
are contracts that have a return, or a portion of their
return, linked to the price of or to an index of precious
metals, petroleum, lumber, agricultural products, etc. 
Commodity and other contracts also include any other contracts
that are not reportable as interest rate, foreign exchange, or
equity derivative contracts.

The contract amount to be reported for commodity and other
contracts is the quantity, e.g., number of units, of the
commodity or product contracted for purchase or sale
multiplied by the contract price of a unit.

The notional amount to be reported for commodity contracts
with multiple exchanges of principal is the contractual amount
multiplied by the number of remaining payments (i.e.,
exchanges of principal) in the contract.

Item 14.a, Futures contracts.  Futures contracts represent
agreements for delayed delivery of financial instruments or
commodities in which the buyer agrees to purchase and the seller
agrees to deliver, at a specified future date, a specified
instrument at a specified price or yield.  Futures contracts are
standardized and are traded on organized exchanges that act as the
counterparty to each contract.  

Report, in the appropriate column, the aggregate par value of
futures contracts that have been entered into by the reporting
bank and are outstanding (i.e., open contracts) as of the report
date.  Do not report the par value of financial instruments
intended to be delivered under such contracts if this par value
differs from the par value of the contracts themselves.

Contracts are outstanding (i.e., open) until they have been
cancelled by acquisition or delivery of the underlying financial
instruments or by offset.  Offset is the liquidating of a purchase
of futures through the sale of an equal number of contracts of the
same delivery month on the same underlying instrument, or the
covering of a short sale of futures through the purchase of an
equal number of contracts of the same delivery month on the same
underlying instrument.

Column A, Interest Rate Futures:  Report futures contracts
committing the reporting bank to purchase or sell financial
instruments and whose predominant risk characteristic is
interest rate risk.  Some of the more common interest rate
futures include futures on 90-day U.S. Treasury bills; 12-year 
GNMA pass-through securities; and 2-, 4-, 6-, and 10-year U.S. 
Treasury notes.

Column B, Foreign Exchange Futures:  Report the gross amount
(stated in U.S. dollars) of all futures contracts committing
the reporting bank to purchase foreign (non-U.S.) currencies
and U.S. dollar exchange and whose predominant risk
characteristic is foreign exchange risk.

A currency futures contract is a standardized agreement for
delayed delivery of a foreign (non-U.S.) currency or U.S.
dollar exchange in which the buyer agrees to purchase and the
seller agrees to deliver, at a specified future date, a
specified amount at a specified exchange rate.

Column C, Equity Derivative Futures:  Report futures
contracts committing the reporting bank to purchase or sell
equity securities or instruments based on equity indexes such
as the Standard and Poor's 500 or the Nikkei.

Column D, Commodity and Other Futures:  Report the contract
amount for all futures contracts committing the reporting
bank to purchase or sell commodities such as agricultural
products (e.g., wheat, coffee), precious metals (e.g., gold,
platinum), and non-ferrous metals (e.g., copper, zinc). 
Include any other futures contract that is not reportable as
an interest rate, foreign exchange, or equity derivative
contract in column A, B, or C.

Item 14.b, Forward contracts.  Forward contracts represent
agreements for delayed delivery of financial instruments or
commodities in which the buyer agrees to purchase and the seller
agrees to deliver, at a specified future date, a specified
instrument or commodity at a specified price or yield.  Forward
contracts are not traded on organized exchanges and their
contractual terms are not standardized.

Report the aggregate par value of forward contracts that have been
entered into by the reporting bank and are outstanding (i.e., open
contracts) as of the report date.  Do not report the par value of
financial instruments intended to be delivered under such
contracts if this par value differs from the par value of the
contracts themselves.

Contracts are outstanding (i.e., open) until they have been
cancelled by acquisition or delivery of the underlying financial
instruments or settled in cash.  Such contracts can only be
terminated, other than by receipt of the underlying asset, by
agreement of both buyer and seller.

Column A, Interest Rate Forwards:  Report forward contracts
committing the reporting bank to purchase or sell financial
instruments and whose predominant risk characteristic is
interest rate risk.

Column B, Foreign Exchange Forwards:  Report the gross amount
(stated in U.S. dollars) of all forward contracts committing
the reporting bank to purchase foreign (non-U.S.) currencies
and U.S. dollar exchange and whose predominant risk
characteristic is foreign exchange risk.

A forward foreign exchange contract is an agreement for
delayed delivery of a foreign (non-U.S.) currency or U.S.
dollar exchange in which the buyer agrees to purchase and the
seller agrees to deliver, at a specified future date, a
specified amount at a specified exchange rate.

Column C, Equity Derivative Forwards:  Report forward
contracts committing the reporting bank to purchase or sell
equity instruments.

Column D, Commodity and Other Forwards:  Report the contract
amount for all forward contracts committing the reporting
bank to purchase or sell commodities such as agricultural
products (e.g., wheat, coffee), precious metals (e.g., gold,
platinum), and non-ferrous metals (e.g., copper, zinc). 
Include any other forward contract that is not reportable as
an interest rate, foreign exchange, or equity derivative
contract in column A, B, or C.

Item 14.c, Exchange-traded option contracts.  Option contracts
convey either the right or the obligation, depending upon whether
the reporting bank is the purchaser or the writer, respectively,
to buy or sell a financial instrument or commodity at a specified
price by a specified future date.  Some options are traded on
organized exchanges.

The buyer of an option contract has, for compensation (such as a
fee or premium), acquired the right (or option) to sell to, or
purchase from, another party some financial instrument or
commodity at a stated price on a specified future date.  The
seller of the contract has, for such compensation, become
obligated to purchase or sell the financial instrument or
commodity at the option of the buyer of the contract.  A put
option contract obligates the seller of the contract to purchase
some financial instrument or commodity at the option of the buyer
of the contract.  A call option contract obligates the seller of
the contract to sell some financial instrument or commodity at the
option of the buyer of the contract.

Item 14.c.(1), Written options.  Report in this item the aggregate
par value of the financial instruments or commodities that the
reporting bank has, for compensation (such as a fee or premium),
obligated itself to either purchase or sell under exchange-traded
option contracts that are outstanding as of the report date.

Column A, Written Exchange-Traded Interest Rate Options:  For
exchange-traded option contracts obligating the reporting
bank to either purchase or sell an interest rate futures
contract and whose predominant risk characteristic is
interest rate risk, report the par value of the financial
instrument underlying the futures contract.  An example of
such a contract is a Chicago Board Options Exchange option on
the 13-week Treasury bill rate.

Column B, Written Exchange-Traded Foreign Exchange Options: 
Report in this item the gross amount (stated in U.S. dollars)
of foreign (non-U.S.) currency and U.S. dollar exchange that
the reporting bank has, for compensation, obligated itself to
either purchase or sell under exchange-traded option
contracts whose predominant risk characteristic is foreign
exchange risk.  In the case of option contracts obligating
the reporting bank to either purchase or sell a foreign
exchange futures contract, report the gross amount (stated in
U.S. dollars) of the foreign (non-U.S.) currency underlying
the futures contract.  Exchange-traded options on major
currencies such as the Japanese Yen, British Pound Sterling
and French Franc and options on futures contracts of major
currencies are examples of such contracts.

.    Column C, Written Exchange-Traded Equity Derivative Options: 
Report the contract amount for those exchange-traded option
contracts where the reporting bank has obligated itself, for
compensation, to purchase or sell an equity instrument or
equity index.

Column D, Written Commodity and Other Exchange-Traded
Options:  Report the contract amount for those exchange-traded 
option contracts where the reporting bank has obligated itself, 
for compensation, to purchase or sell a commodity or product.  
Include any other written, exchange-traded option that is not 
reportable as an interest rate, foreign exchange, or equity 
derivative contract in column A, B, or C.

Item 14.c.(2), Purchased options.  Report in this item the
aggregate par value of the financial instruments or commodities
that the reporting bank has, for a fee or premium, purchased the
right to either purchase or sell under exchange-traded option
contracts that are outstanding as of the report date.

Column A, Purchased Exchange-Traded Interest Rate Options: 
For exchange-traded option contracts giving the reporting
bank the right to either purchase or sell an interest rate
futures contract and whose predominant risk characteristic is
interest rate risk, report the par value of the financial
instrument underlying the futures contract.  An example of
such a contract is a Chicago Board Options Exchange option on
the 13-week Treasury bill rate.

Column B, Purchased Exchange-Traded Foreign Exchange Options: 
Report in this item the gross amount (stated in U.S. dollars)
of foreign (non-U.S.) currency and U.S. dollar exchange that
the reporting bank has, for a fee, purchased the right to
either purchase or sell under exchange-traded option
contracts whose predominant risk characteristic is foreign
exchange risk.  In the case of option contracts giving the
reporting bank the right to either purchase or sell a
currency futures contract, report the gross amount (stated in
U.S. dollars) of the foreign (non-U.S.) currency underlying
the futures contract.  Exchange-traded options on major
currencies such as the Japanese Yen, British Pound Sterling
and French Franc and options on futures contracts of major
currencies are examples of such contracts.

Column C, Purchased Exchange-Traded Equity Derivative
Options:  Report the contract amount of those exchange-traded
option contracts where the reporting bank has, for a fee,
purchased the right to purchase or sell an equity instrument
or equity index.

Column D, Purchased Commodity and Other Exchange-Traded
Options:  Report the contract amount for those exchange-traded 
option contracts where the reporting bank has, for a
fee, purchased the right to purchase or sell a commodity or
product.  Include any other purchased, exchange-traded option
that is not reportable as an interest rate, foreign exchange,
or equity derivative contract in column A, B, or C.

Item 14.d, Over-the-counter option contracts.  Option contracts
convey either the right or the obligation, depending upon whether
the reporting bank is the purchaser or the writer, respectively,
to buy or sell a financial instrument or commodity at a specified
price by a specified future date.  Options can be written to meet
the specialized needs of the counterparties to the transaction. 
These customized option contracts are known as over-the-counter
(OTC) options.  Thus, over-the-counter option contracts include
all option contracts not traded on an organized exchange.

The buyer of an option contract has, for compensation (such as a
fee or premium), acquired the right (or option) to sell to, or
purchase from, another party some financial instrument or
commodity at a stated price on a specified future date.  The
seller of the contract has, for such compensation, become
obligated to purchase or sell the financial instrument or
commodity at the option of the buyer of the contract.  A put
option contract obligates the seller of the contract to purchase
some financial instrument or commodity at the option of the buyer
of the contract.  A call option contract obligates the seller of
the contract to sell some financial instrument or commodity at the
option of the buyer of the contract.

In addition, swaptions, i.e., options to enter into a swap
contract, and contracts known as caps, floors, collars, and
corridors should be reported as options.

Options such as a call feature that are embedded in loans,
securities, and other on-balance sheet assets are not to be
reported in Schedule RC-L.  Commitments to lend are not considered
options for purposes of Schedule RC-L, item 14, but should be
reported in Schedule RC-L, item 1.

Item 14.d.(1), Written options.  Report in this item the aggregate
par value of the financial instruments or commodities that the
reporting bank has, for compensation (such as a fee or premium),
obligated itself to either purchase or sell under OTC option
contracts that are outstanding as of the report date.  Also report
an aggregate notional amount for written caps, floors, and
swaptions and for the written portion of collars and corridors.

Column A, Written OTC Interest Rate Options:  Interest rate
options include options to purchase and sell interest-bearing
financial instruments and whose predominant risk
characteristic is interest rate risk as well as contracts
known as caps, floors, collars, corridors, and swaptions. 
Include in this item the notional principal amount for
interest rate caps and floors that the reporting bank sells. 
For interest rate collars and corridors, report a notional
amount for the written portion of the contract in Schedule
RC-L, item 14.d.(1), column A, and for the purchased portion
of the contract in Schedule RC-L, item 14.d.(2), column A.

Column B, Written OTC Foreign Exchange Options:  A written
currency option contract conveys the obligation to exchange
two different currencies at a specified exchange rate. 
Report in this item the gross amount (stated in U.S. dollars)
of foreign (non-U.S.) currency and U.S. dollar exchange that
the reporting bank has, for compensation, obligated itself to
either purchase or sell under OTC option contracts whose
predominant risk characteristic is foreign exchange risk.

Column C, Written OTC Equity Derivative Options:  Report the
contract amount for those OTC option contracts where the
reporting bank has obligated itself, for compensation, to
purchase or sell an equity instrument or equity index.

Column D, Written Commodity and Other OTC Options:  Report
the contract amount for those OTC option contracts where the
reporting bank has obligated itself, for compensation, to
purchase or sell a commodity or product.  Include any other
written, OTC option that is not reportable as an interest
rate, foreign exchange, or equity derivative contract in
column A, B, or C.

Item 14.d.(2), Purchased options.  Report in this item the
aggregate par value of the financial instruments or commodities
that the reporting bank has, for a fee or premium, purchased the
right to either purchase or sell under OTC option contracts that
are outstanding as of the report date.  Also report an aggregate
notional amount for purchased caps, floors, and swaptions and for
the purchased portion of collars and corridors.

Column A, Purchased OTC Interest Rate Options:  Interest rate
options include options to purchase and sell interest-bearing
financial instruments and whose predominant risk
characteristic is interest rate risk as well as contracts
known as caps, floors, collars, corridors, and swaptions. 
Include in this item the notional principal amount for
interest rate caps and floors that the reporting bank
purchases.  For interest rate collars and corridors, report a
notional amount for the written portion of the contract in
Schedule RC-L, item 14.d.(1), column A, and for the purchased
portion of the contract in Schedule RC-L, item 14.d.(2),
column A.

Column B, Purchased OTC Foreign Exchange Options:  Report in
this item the gross amount (stated in U.S. dollars) of
foreign (non-U.S.) currency and U.S. dollar exchange that the
reporting bank has, for a fee, purchased the right to either
purchase or sell under option contracts whose predominant
risk characteristic is foreign exchange risk.

Column C, Purchased OTC Equity Derivative Options:  Report
the contract amount of those OTC option contracts where the
reporting bank has, for a fee, purchased the right to
purchase or sell an equity instrument or equity index.

Column D, Purchased Commodity and Other OTC Options:  Report
the contract amount for those option contracts where the
reporting bank has, for a fee, purchased the right to
purchase or sell a commodity or product.  Include any other
purchased OTC option that is not reportable as an interest
rate, foreign exchange or equity derivative contract in
column A, B, or C.
Item 14.e, Swaps.  Swaps are transactions in which two parties
agree to exchange payment streams based on a specified notional
amount for a specified period.  Forward starting swap contracts
should be reported as swaps.  The notional amount of a swap is the
underlying principal amount upon which the exchange of interest,
foreign exchange or other income or expense is based.  The
notional amount to be reported for a swap contract with a
multiplier component is the contract's effective notional amount. 
In those cases where the reporting bank is acting as an
intermediary, both sides of the transaction are to be reported.

Column A, Interest Rate Swaps:  Report the notional amount of
all outstanding interest rate and basis swaps whose
predominant risk characteristic is interest rate risk.  Such
swaps may be undertaken by the reporting bank to hedge its
own interest rate risk, in an intermediary capacity, or to
hold in inventory.

Column B, Foreign Exchange Swaps:  Report the notional
principal amount (stated in U.S. dollars) of all outstanding
cross-currency interest rate swaps, whether the swap is
undertaken by the reporting bank to hedge its own exchange
rate risk, in an intermediary capacity, or to hold in
inventory.

A cross-currency interest rate swap is a transaction in which
two parties agree to exchange principal amounts of different
currencies, usually at the prevailing spot rate, at the
inception of an agreement which lasts for a certain number of
years.  At defined intervals over the life of the swap, the
counterparties exchange payments in the different currencies
based on specified rates of interest.  When the agreement
matures, the principal amounts will be re-exchanged at the
same spot rate.  The notional amount of a cross-currency
interest rate swap is generally the underlying principal
amount upon which the exchange is based.

Column C, Equity Swaps:  Report the notional amount of all
outstanding equity or equity index swaps, whether the swap is
undertaken by the reporting bank to hedge its own equity--
based risk, in an intermediary capacity, or to hold in
inventory.

Column D, Commodity and Other Swaps:  Report the notional
principal amount of all other swap agreements that are not
reportable as either interest rate, foreign exchange, or
equity derivative contracts in column A, B, or C.  The
notional amount to be reported for commodity contracts with
multiple exchanges of principal is the contractual amount
multiplied by the number of remaining payments (or exchanges
of principal) in the contract.

Item 15, Total gross notional amount of derivative contracts held
for trading.  Report, in the appropriate column, the total
notional amount or par value of those off-balance-sheet derivative
contracts in Schedule RC-L, item 14 above that are held for
trading purposes.  Contracts held for trading purposes include
those used in dealing and other trading activities accounted for
at market value (or at lower of cost or market value) with gains
and losses recognized in earnings.  Derivative instruments used to
hedge trading activities should also be reported in this item.

Derivative trading activities include (a) regularly dealing in
interest rate contracts, foreign exchange contracts, equity
derivative contracts, and other off-balance sheet commodity
contracts, (b) acquiring or taking positions in such items
principally for the purpose of selling in the near term or
otherwise with the intent to resell (or repurchase) in order to
profit from short-term price movements, or (c) acquiring or taking
positions in such items as an accommodation to customers.

The reporting bank's trading department may have entered into a
derivative contract with another department or business unit
within the consolidated bank (and which has been reported on a net
basis in accordance with the instructions to Schedule RC-L, item
14 above).  If the trading department has also entered into a
matching contract with a counterparty outside the consolidated
bank, the contract with the outside counterparty should be
designated as held for trading or as held for purposes other than
trading consistent with the contract's designation for other
financial reporting purposes.

Item 16, Total gross notional amount of derivative contracts held
for purposes other than trading.  

Item 16.a, Contracts marked to market.  Report, in the appropriate
column, the total notional amount or par value of those contracts
in Schedule RC-L, item 14 above that are held for purposes other
than trading and that, for purposes of these reports, are
accounted for at market value or lower of cost or market value
with gains and losses recognized either in earnings or in equity
capital.

Include in this item (a) off-balance-sheet contracts used to hedge
debt and equity securities classified as available-for-sale, (b)
foreign exchange contracts that are designated as, and are
effective as, economic hedges of a net investment in a foreign
office, (c) intercompany foreign exchange contracts of a long-term
investment nature when the parties to the contract are
consolidated, combined or accounted for by the equity method, and
(d) off-balance-sheet contracts used to hedge other assets or
liabilities not held for trading purposes that are accounted for
at market value.

Item 16.b, Contracts not marked to market.  Report, in the
appropriate column, the total notional amount or par value of all
contracts in Schedule RC-L, item 14 above that are not accounted
for at market value or lower of cost or market value.  Include in
this item the notional amount or par value of contracts such as
swap contracts intended to hedge interest rate risk on commercial
loans that are accounted for on the accrual basis.

Item 17, Gross fair values of derivative contracts.  (Item 17 is
to be completed only by banks with foreign offices or with $100
million or more in total assets that file the FFIEC 031, 032, or
033 report forms.)  Report in the appropriate column and subitem
below the fair (or market) value of all off-balance-sheet
derivative contracts reported in Schedule RC-L, items 15, 16.a,
and 16.b above.  For each of the four types of underlying risk
exposure in columns A through D, the gross positive and gross
negative fair values will be reported separately for (i) contracts
held for trading purposes (in item 17.a), (ii) contracts held for
purposes other than trading that are marked to market for Call
Report purposes (in item 17.b), and (iii) contracts held for
purposes other than trading that are not marked to market (in item
17.c).  Guidance for reporting by type of underlying risk exposure
is provided in the instructions for Schedule RC-L, item 14 above. 
Guidance for reporting by purpose and accounting methodology is
provided in the instructions for Schedule RC-L, items 15, 16.a,
and 16.b above.

All transactions within the consolidated bank should be reported
on a net basis.  No other netting of contracts is permitted for
purposes of this item.  Therefore, do not net (1) obligations of
the reporting bank to buy against the bank's obligations to sell,
(2) written options against purchased options, (3) positive fair
values against negative fair values, or (4) contracts subject to
bilateral netting agreements.

Report as fair value the amount at which a contract could be
exchanged in a current transaction between willing parties, other
than in a forced or liquidation sale.  If a quoted market price is
available for a contract, the fair value to be reported for that
contract is the product of the number of trading units of the
contract multiplied by that market price.  If a quoted market
price is not available, report the bank's best estimate of fair
value based on the quoted market price of a similar contract or on
valuation techniques such as discounted cash flows.  For purposes
of item 17, the reporting bank should determine the fair value of
its off-balance sheet derivative contracts in the same manner that
it determines the fair value of these contracts for other
financial reporting purposes.  For example, for interest rate
swaps, fair value may include accrued net settlement amounts which
have not been paid or received.  Otherwise, do not combine,
aggregate, or net the reported fair value with the fair or book
value of any other derivative or asset or liability.  

Item 17.a, Contracts held for trading.  Report in the appropriate
column and subitem the gross positive and gross negative fair
values of those contracts held for trading reported in Schedule
RC-L, item 15 above.

Item 17.a.(1), Gross positive fair value.  Report in the
appropriate column the total fair value of those contracts in
Schedule RC-L, item 15 above with positive fair values.

Item 17.a.(2), Gross negative fair value.  Report in the
appropriate column the total fair value of those contracts in
Schedule RC-L, item 15 above with negative fair values.  Report
the total fair value as an absolute value, do not enclose the
total fair value in parentheses or use a minus (-) sign.

Item 17.b, Contracts held for purposes other than trading that are
marked to market.  Report in the appropriate column and subitem
the gross positive and gross negative fair values of those
contracts held for purposes other than trading that are reported
in Schedule RC-L, item 16.a above.

Item 17.b.(1), Gross positive fair value.  Report in the
appropriate column the total fair value of those contracts in
Schedule RC-L, item 16.a above with positive fair values.

Item 17.b.(2), Gross negative fair value.  Report in the
appropriate column the total fair value of those contracts in
Schedule RC-L, item 16.a above with negative fair values.  Report
the total fair value as an absolute value, do not enclose the
total fair value in parentheses or use a minus (-) sign.

Item 17.c, Contracts held for purposes other than trading that are
not marked to market.  Report in the appropriate column and
subitem the gross positive and negative fair values of those
contracts held for purposes other than trading that are reported
in Schedule RC-L, item 16.b above.
Item 17.c.(1), Gross positive fair value.  Report in the
appropriate column the total fair value of those contracts in
Schedule RC-L, item 16.b above with positive fair values.

Item 17.c.(2), Gross negative fair value.  Report in the
appropriate column the total fair value of those contracts in
Schedule RC-L, item 16.b above with negative fair values.  Report
the total fair value as an absolute value, do not enclose the
total fair value in parentheses or use a minus (-) sign.

Schedule RI, "Income Statement"

Banks that file the FFIEC 031, 032, or 033 report forms will see
the addition of memorandum items 8 and 9 to Schedule RI.  These
items will not be added to the FFIEC 034 report forms filed by
small banks.

The sample of Schedule RI, Memorandum items 8 and 9, shown below
is from the FFIEC 031 report forms.  Memorandum items 8 and 9 are
not applicable to banks that file the FFIEC 034 report forms.

Memorandum Item 8, Trading revenue (from cash instruments and off-balance 
sheet derivative instruments).  Report, in the appropriate
item below, a breakdown of trading revenue that has been included
in the body of the income statement in Schedule RI, items 5.c and
5.e.  For each of the four types of underlying risk exposure,
report the combined revenue (net gains and losses) from trading
cash instruments and off-balance sheet derivative instruments. 
For purposes of Memorandum item 8, the reporting bank should
determine the underlying risk exposure category in which to report
the trading revenue from cash instruments and off-balance sheet
derivative instruments in the same manner that the bank makes this
determination for other financial reporting purposes.
           
Memorandum Item 8.a, Interest rate exposures.  Report in this item
net gains (losses) from trading cash instruments and off-balance
sheet derivative contracts that the reporting bank manages as
interest rate exposures.  Interest rate exposures may arise from
cash debt instruments (e.g., U.S. Treasury securities) and
interest rate contracts.  Interest rate contracts are those
contracts related to an interest-bearing financial instrument or
whose cash flows are determined by referencing interest rates or
another interest rate contract (e.g., an option on a futures
contract to purchase a Treasury bill).  Interest rate contracts
include single currency interest rate swaps, basis swaps, forward
rate agreements, and interest rate options, including caps,
floors, collars, and corridors.

Exclude trading revenue on contracts involving the exchange of
foreign currencies (e.g., cross-currency swaps and currency
options) that the reporting bank manages as foreign exchange
exposures.  Report such trading revenue in Memorandum item 8.b.

Memorandum Item 8.b, Foreign exchange exposures.  Report in this
item net gains (losses) from trading cash instruments and off-balance 
sheet derivative contracts that the reporting bank manages
as foreign exchange exposures.  Foreign exchange exposures may
arise from cash instruments (e.g., debt securities) denominated in
non-U.S. currencies and foreign exchange rate contracts.  Foreign
exchange rate contracts are those contracts to purchase foreign
(non-U.S.) currencies and U.S. dollar exchange in the forward
market, i.e., on an organized exchange or in an over-the-counter
market.  A purchase of U.S. dollar exchange is equivalent to a
sale of foreign currency.  Foreign exchange rate contracts include
cross-currency interest rate swaps where there is an exchange of
principal, forward and spot foreign exchange contracts, and
currency futures and currency options.

Memorandum Item 8.c, Equity security or index exposures.  Report
in this item net gains (losses) from trading cash instruments and
off-balance sheet derivative contracts that the reporting bank
manages as equity security or index exposures.  Equity security or
index exposures may arise from equity securities and equity
security or index (i.e., equity derivative) contracts.  Equity
derivative contracts are contracts that have a return, or a
portion of their return, linked to the price of a particular
equity or to an index of equity prices, such as the Standard and
Poor's 500.

Memorandum Item 8.d, Commodity and other exposures.  Report in
this item net gains (losses) from trading cash instruments and
off-balance sheet derivative contracts that the reporting bank
manages as commodity or other exposures.  Commodity or other
exposures may arise from commodities and off-balance sheet
commodity and other contracts not reported as interest rate,
foreign exchange, or equity derivative contracts.  Commodity and
other contracts are contracts that have a return, or a portion of
their return, linked to the price or to an index of precious
metals, petroleum, lumber, agricultural products, etc.  Commodity
and other contracts also include any other contracts that are not
reportable as interest rate, foreign exchange, or equity
derivative contracts.

Memorandum Item 9, Impact on income of off-balance sheet
derivatives held for purposes other than trading.  For derivatives
held for purposes other than trading, report the impact that these
contracts had on the bank's income as reported in Schedule RI. 
The amounts to be reported include amounts recognized in Schedule
RI in the period in which the transactions occur as well as the
amortization in the year-to-date period of amounts previously
deferred.  Under current practice, many banks report periodic net
settlements for many swaps and other amounts related to off--
balance-sheet instruments accounted for on the hedge or accrual
basis as components of the interest income, interest expense, and
other noninterest income Call Report income statement
(Schedule RI) items to which they relate.

For example, if a swap is intended to hedge interest rate risk on
commercial loans, the bank may report the income or expense
associated with net settlement accruals on that swap in the income
statement items for "interest and fee income on commercial loans"
in Schedule RI of the Call Report.  There is no change to this
existing reporting practice.  In such a situation, the bank would
also report these net settlement accruals in Memorandum item 9.a
for the net increase (decrease) to interest income.

As another example, if a swap is intended to hedge interest rate
risk on money market deposit accounts, the bank may report the
income or expense associated with net settlement accruals on that
swap in the income statement items for "interest expense on money
market deposit accounts" in Schedule RI of the Call Report.  There
is no change to this existing reporting practice.  In such a
situation, the bank would also report these net settlement
accruals in Memorandum item 9.b for the net (increase) decrease to
interest expense.

Memorandum Item 9.a, Net increase (decrease) to interest income. 
Report the net sum of all amounts reported in Schedule RI interest
income items (items 1.a through 1.f) which were recognized from
off-balance-sheet derivative transactions used to hedge or adjust
interest income from assets.  If the net sum is a net decrease to
interest income, enclose this amount in parentheses.

Memorandum Item 9.b, Net (increase) decrease to interest expense. 
Report the net sum of all amounts reported in Schedule RI interest
expense items (items 2.a through 2.e) which were recognized from
off-balance-sheet derivative transactions used to hedge or adjust
interest expense from liabilities.  If the net sum is a net
increase to interest expense, enclose this amount in parentheses.

Memorandum Item 9.c, Other (noninterest) allocations.  Report the
net sum of all amounts reported in Schedule RI, but not reported
in Memorandum items 9.a or 9.b above, which were recognized from
off-balance-sheet derivative transactions for purposes other than
trading.  For example, include all amounts recognized from 
off-balance-sheet derivative transactions reported in other
noninterest income (Schedule RI, item 5.f.(2)) and other
noninterest expense (Schedule RI, item 7.c).  Include the impact
of futures, forwards, and option contracts that are reported in
other noninterest income (expense) in accordance with the Glossary
entry for those instruments.  If the net sum is a net expense or
loss, enclose this amount in parentheses.

A bank may use off-balance-sheet derivative contracts to hedge
assets carried at the lower of cost or market value (LOCOM) such
as mortgages held for sale.  If, in accordance with the
instructions for the Reports of Condition and Income, the gains
and losses on the derivatives are used to adjust the cost basis of
these assets (rather than being recognized through earnings),
include in this item the difference between (1) the actual
calendar year-to-date change in the LOCOM valuation allowance, if
any, that the reporting bank has included in the year-to-date
earnings reported in Schedule RI, "Income Statement," and (2) the
amount that the calendar year-to-date change in the LOCOM
valuation allowance would have been if the gains and losses on 
these derivatives had been recognized through earnings and not deferred.

NOTE:  In a related change to Schedule RI, the caption for item
5.e on the FFIEC 031, 032, and 033 report forms will be modified
to read "Other gains (losses) and fees from trading assets and
liabilities."  The instructions to this item would be revised as
follows:

Item 5.e, Other gains (losses) and fees from trading assets and
liabilities.  Report the net gain or loss from the sale of assets
and other trading financial instruments and commodity contracts
reportable in Schedule RC, item 5, "Trading assets," and from
short positions reportable in Schedule RC, item 15.b, "Trading
liabilities," other than those trading gains (losses) and fees
related to foreign exchange transactions that are reported in
Schedule RI, item 5.c above.

Include:

(1) Revaluation adjustments to the carrying value of assets and
liabilities reportable in Schedule RC, item 5, "Trading
assets," and Schedule RC, item 15.b, "Trading liabilities,"
resulting from the periodic marking to market (or the lower
of cost or market) of such assets and liabilities.

(2) Revaluation adjustments from the periodic marking to market
(or the lower of cost or market) of interest rate, foreign
exchange, equity derivative, and commodity and other
contracts held for trading purposes.

(3) Incidental income and expense related to the purchase and
sale of assets and other trading financial instruments and
commodity contracts reportable in Schedule RC, item 5,
"Trading assets," and Schedule RC, item 15.b, "Trading
liabilities."

If the amount to be reported in this item is a loss, enclose it in
parentheses.

NOTE:  The existing language in the Glossary entry for "futures,
forward, and standby contracts" identifying the "Income Statement"
items in which banks should report gains and losses on contracts
held for trading also will be changed to conform to the revised
instruction for Schedule RI, item 5.e.

Schedule RC-R, "Risk-Based Capital"

For those banks that complete the entire risk-based capital
schedule, the data that is now reported on the current credit
exposure (replacement cost) and remaining maturity of interest
rate and foreign exchange contracts covered will be expanded and
collected in new Memorandum items 1 and 2.

Memorandum Item 1, Current credit exposure across all 
off-balance-sheet derivative contracts covered by the risk-based capital
standards.  Report a single current credit exposure amount for
off-balance-sheet derivative contracts covered by the risk-based
capital standards after considering applicable legally enforceable
bilateral netting agreements.  For purposes of this item, include
the current credit exposure for off-balance sheet interest rate,
foreign exchange, equity derivative, and commodity and other
contracts.  (Note:  At the present time, under the banking
agencies' risk-based capital standards and for purposes of this
item, the existence of a legally enforceable bilateral netting
agreement between the reporting bank and a counterparty may only
be taken into consideration when determining the current credit
exposure of off-balance sheet interest rate and foreign exchange
contracts.)  For descriptions of these contracts, refer to the
instructions for Schedule RC-L, item 14.

Current credit exposure (sometimes referred to as the replacement
cost) is the fair value of a contract when that fair value is
positive.  The current credit exposure is zero when the fair value
is negative or zero.  Current credit exposure should be derived as
follows:  Determine whether a legally enforceable bilateral
netting agreement is in place between the reporting bank and a
counterparty.  If such an agreement is in place, the fair values
of all applicable interest rate and foreign exchange contracts
with that counterparty that are included in the netting agreement
are netted to a single amount.  Next, for all other contracts
covered by the risk-based capital standards that have positive
fair values, the total of the positive fair values is determined. 
Then, report in this item the sum of (i) the net positive fair
values of applicable interest rate and foreign exchange contracts
subject to legally enforceable bilateral netting agreements and
(ii) the total positive fair values of all other contracts covered
by the risk-based capital standards.

Consistent with newly adopted amendments to the risk-based capital
guidelines, if a bilateral netting agreement covers off-balance
sheet interest rate and foreign exchange contracts that are
normally not covered by the risk-based capital standards (i.e.,
foreign exchange contracts with an original maturity of 14
calendar days or less and contracts traded on exchanges that
require daily payment of variation margin), the reporting bank may
elect to consistently either include or exclude the fair values of
all such derivative contracts when determining the net current
credit exposure for that agreement.

The definition of a legally enforceable bilateral netting
agreement for purposes of this item is the same as that set forth
in the risk-based capital rules.  These rules require a written
bilateral netting contract that creates a single legal obligation
covering all included individual contracts and that does not
contain a walkaway clause.  The bilateral netting agreement must
be supported by a written and reasoned legal opinion representing
that an organization's claim or obligation, in the event of a
legal challenge, including one resulting from default, insolvency,
bankruptcy, or similar circumstances, would be found by the court
and administrative authorities of all relevant jurisdictions to be
the net sum of all positive and negative fair values of contracts
included in the bilateral netting contract.

Memorandum Item 2, Notional principal amounts of off-balance-sheet
derivative contracts.  Report in the appropriate subitem and
column below the notional amount or par value of off-balance-sheet
contracts included in Schedule RC-L, item 14, that are subject to
risk-based capital requirements.  Such contracts include swaps,
forwards, and purchased options.  Report notional amounts and par
values in the column corresponding to the contract's remaining
term to maturity from the report date.  Remaining maturities are
to be reported as (1) one year or less in column A, (2) over one
year through five years in column B, or (3) over five years in
column C.

Do not report the notional amount for single currency interest
rate swaps in which payments are made based upon two floating rate
indices, so-called floating/floating or basis swaps; foreign
exchange contracts with an original maturity of 14 days or less;
and futures contracts.

The notional amount or par value to be reported for an 
off-balance-sheet derivative contract with a multiplier component is
the contract's effective notional amount or par value.  (For
example, a swap contract with a stated notional amount of
$1,000,000 whose terms called for quarterly settlement of the
difference between 5% and LIBOR multiplied by 10 has an effective
notional amount of $10,000,000.)

The notional amount to be reported for an amortizing 
off-balance-sheet derivative contract is the contract's current 
(or, if appropriate, effective) notional amount.  This notional 
amount should be reported in the column corresponding to the 
contract's remaining term to final maturity.

For descriptions of "interest rate contracts," "foreign exchange
contracts," "commodity and other contracts," and "equity
derivative contracts," refer to the instructions for Schedule RC-L, 
item 14.

Memorandum Item 2.a, Interest rate contracts.

Memorandum Item 2.b, Foreign exchange contracts.

Memorandum Item 2.c, Gold contracts.

Memorandum Item 2.d, Other precious metals contracts.  Report all
silver, platinum, and palladium contracts.

Memorandum Item 2.e, Other commodity contracts.  For contracts
with multiple exchanges of principal, notional amount is
determined by multiplying the contractual amount by the number of
remaining payments (i.e., exchanges of principal) in the
derivative contract.

Memorandum Item 2.f, Equity derivative contracts.

Other New Items

Schedule RC-B, "Securities"

New Memorandum items 8 and 9 for investments in "high-risk
mortgage securities" and "structured notes" will be added to
Schedule RC-B.  In addition, the types of mortgage-backed
securities to be included in item 4 of Schedule RC-B have been
expanded and the captions for some of its subitems have been
revised accordingly.

More specifically, item 4.b of Schedule RC-B, which currently
collects data only on CMOs and REMICs, is being revised to cover
all mortgage-backed securities other than pass-through securities. 
This affects the reporting of stripped mortgage-backed securities
(i.e., interest-only (IO) and principal-only (PO) strips), CMO
residuals, and mortgage-backed securities issued by state and
local housing authorities.  IOs and POs (which have been reported
based on their issuer in either Schedule RC-B, item 2, as U.S.
Government agency securities or Schedule RC-B, item 5, as "Other
debt securities") and CMO residuals (which have been reported as
"Other assets" on the Call Report balance sheet) will now be
reported in the appropriate subitem of item 4.b.  Mortgage-backed
securities issued by state and local housing authorities, which
generally have been reported as municipal securities in item 3 of
Schedule RC-B, will now be reported as pass-through securities in
item 4.a or as other mortgage-backed securities in item 4.b, as
appropriate.  Because of these changes to the coverage of Schedule
RC-B, item 4, the instructions to Schedule RC-B, items 2, 3, and 5
will be adjusted accordingly.

Conforming changes will also be made to the instructions for
mortgage-backed securities in Schedule RC-D, "Trading Assets and
Liabilities," and Schedule RC-H, "Selected Balance Sheet Items for
Domestic Offices."  Schedule RC-D is completed by banks with $1
billion or more in total assets or $2 billion or more in notional
amount/par value of off-balance sheet derivative contracts that
submit the FFIEC 031 or 032 version of the Call Report. 
Schedule RC-H is completed by banks with foreign offices that file
the FFIEC 031 report form.  The change in the categorization of
mortgage-backed securities issued by state and local housing
authorities and CMO residuals for purposes of Schedule RC-B will
also affect the reporting of the quarterly averages for securities
and securities income in Schedules RC-K and RI, respectively.

Item 4, Mortgage-backed securities.  Report in the appropriate
columns of the appropriate subitems the amortized cost and fair
value of all mortgage-backed securities, including mortgage 
pass-through securities, collateralized mortgage obligations (CMOs),
real estate mortgage investment conduits (REMICs), CMO and REMIC
residuals, and stripped mortgage-backed securities (such as
interest-only strips (IOs), principal-only strips (POs), and
similar instruments).

Exclude from mortgage-backed securities:

(1) Bonds issued by the Federal National Mortgage Association
(FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC)
that are collateralized by mortgages, i.e., mortgage-backed
bonds, (report in Schedule RC-B, item 2(b), Obligations
"Issued by U.S. Government-sponsored agencies") and 
mortgage-backed bonds issued by non-U.S. Government issuers 
(report in Schedule RC-B, item 5, "Other debt securities," below).

(2) Participation certificates issued by the Export-Import Bank
and the General Services Administration (report in Schedule
RC-B, item 2.a, Obligations "Issued by U.S. Government
agencies").

(3) Participation certificates issued by a Federal Intermediate
Credit Bank (report in Schedule RC-B, item 6.c, "All other
equity securities").

(4) Notes insured by the Farmers Home Administration (FmHA) and
instruments (certificates of beneficial ownership and insured
note insurance contracts) representing an interest in 
FmHA-insured notes (report in Schedule RC-B, item 2.a).

Item 4.a, Pass-through securities.  Report in the appropriate
columns of the appropriate subitems the amortized cost and fair
value of all holdings of mortgage pass-through securities.  In
general, a mortgage pass-through security represents an undivided
interest in a pool that provides the holder with a pro rata share
of all principal and interest payments on the residential
mortgages in the pool, and includes certificates of participation
in pools of residential mortgages.

Include certificates of participation in pools of residential
mortgages even though the reporting bank was the original holder
of the mortgages underlying the pool and holds the instruments
covering that pool, as may be the case with GNMA certificates
issued by the bank and swaps with FNMA and FHLMC.  Also include
U.S. Government-issued participation certificates (PCs) that
represent a pro rata share of all principal and interest payments
on a pool of resecuritized participation certificates that, in
turn, are backed by residential mortgages, e.g., FHLMC Giant PCs.

Exclude all collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), CMO and REMIC
residuals, and stripped mortgage-backed securities (such as
interest-only strips (IOs), principal-only strips (POs), and
similar instruments) (report in Schedule RC-B, item 4.b, below).

Item 4.a.(1), Guaranteed by GNMA.  Report in the appropriate
columns the amortized cost and fair value of all holdings of
mortgage pass-through securities guaranteed by the Government
National Mortgage Association (GNMA) that are not held for
trading.  Exclude mortgage pass-through securities issued by FNMA
and FHLMC (report in Schedule RC-B, item 4.a.(2) below).

Item 4.a.(2), Issued by FNMA and FHLMC.  Report in the appropriate
columns the amortized cost and fair value of all holdings of
mortgage pass-through securities issued by the Federal National
Mortgage Association (FNMA) and the Federal Home Loan Mortgage
Corporation (FHLMC) that are not held for trading.  Exclude
mortgage pass-through securities that are guaranteed by the
Government National Mortgage Association (GNMA) (report in
Schedule RC-B, item 4.a.(1) above).

Item 4.a.(3), Other pass-through securities.  Report in the
appropriate columns the amortized cost and fair value of all
holdings of mortgage pass-through insurance issued by others
(e.g., other depository institutions, insurance companies, state
and local housing authorities in the U.S.) that are not guaranteed
by the U.S. Government and are not held for trading.

If the reporting bank has issued private certificates of
participation in a pool of its own residential mortgages in a
transaction that is not required to be reported as a financing in
accordance with the Glossary entry for "participations in pools of
residential mortgages," any unsold private certificates of
participation are to be reported in this item.

Item 4.b, Other mortgage-backed securities.  Report in the
appropriate columns of the appropriate subitems the amortized cost
and fair value of all mortgage-backed securities other than 
pass-through securities that are not held for trading.

Other mortgage-backed securities include:

(1) All classes of collateralized mortgage obligations (CMOs) and
real estate mortgage investments conduits (REMICs).

(2) CMO and REMIC residuals and similar interests.

(3) Stripped mortgage-backed securities (such as interest-only
strips (IOs), principal-only strips (POs), and similar
instruments).

Item 4.b.(1), Issued or guaranteed by FNMA, FHLMC, or GNMA. 
Report in the appropriate columns the amortized cost and fair
value of all classes of CMOs and REMICs, CMO and REMIC residuals,
and stripped mortgage-backed securities issued by the Federal
National Mortgage Association (FNMA) or the Federal Home Loan
Mortgage Corporation (FHLMC) or guaranteed by the Government
National Mortgage Association (GNMA).  For purposes of these
reports, also include REMICs issued by the U.S. Department of
Veterans Affairs (VA) in this item.

Item 4.b.(2), Other mortgage-backed securities collateralized by
MBS issued or guaranteed by FNMA, FHLMC, or GNMA.  Report in the
appropriate columns the amortized cost and fair value of all
classes of CMOs, REMICs, CMO and REMIC residuals, and stripped
mortgage-backed securities issued by non-U.S. Government issuers
(e.g., other depository institutions, insurance companies, state
and local housing authorities in the U.S.) for which the
collateral consists of GNMA (Ginnie Mae) pass-throughs, FNMA
(Fannie Mae) pass-throughs, FHLMC (Freddie Mac) participation
certificates, or other mortgage-backed securities (i.e., classes
of CMOs or REMICs, CMO or REMIC residuals, and stripped 
mortgage-backed securities) issued or guaranteed by FNMA, FHLMC, 
GNMA, or VA.

Item 4.b.(3), All other mortgage-backed securities.  Report in the
appropriate columns the amortized cost and fair value of all CMOs,
REMICs, CMO and REMIC residuals, and stripped mortgage-backed
securities issued by non-U.S. Government issuers (e.g., other
depository institutions, insurance companies, state and local
housing authorities in the U.S.) for which the collateral does not
consist of GNMA (Ginnie Mae) pass-throughs, FNMA (Fannie Mae)
pass-throughs, FHLMC (Freddie Mac) participation certificates, or
other mortgage-backed securities (i.e., classes of CMOs or REMICs,
CMO or REMIC residuals, and stripped mortgage-backed securities)
issued or guaranteed by FNMA, FHLMC, GNMA, or VA.

Schedule RC-B, Memorandum items 8 and 9, are shown below.

Memorandum Item 8, High-risk mortgage securities.  Report in this
item all high-risk mortgage securities included in the
held-to-maturity and available-for-sale accounts and reported in
Schedule RC-B, item 4.b.  Report those securities which are deemed
to be high-risk under the FFIEC's Supervisory Policy Statement on
Securities Activities as of their most recent testing date.  Under
that policy statement, a "high-risk mortgage security" is defined
as any mortgage derivative product (i.e., stripped mortgage-backed
securities, collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), and CMO and REMIC
residuals) that at the time of purchase, or at a subsequent
testing date, meets any of the following tests.  In general, a
mortgage derivative product that does not meet any of the
following three tests will be considered a "nonhigh-risk mortgage
security."

(1) Average Life Test:  The mortgage derivative product has an
expected weighted average life greater than 10.0 years.

(2) Average Life Sensitivity Test:  The expected weighted
average life of the mortgage derivative product:
(a)  Extends by more than 4.0 years, assuming an immediate
and sustained parallel shift in the yield curve of plus
300 basis points, or
(b)  Shortens by more than 6.0 years, assuming an immediate
and sustained parallel shift in the yield curve of minus
300 basis points.

(3) Price Sensitivity Test:  The estimated change in the price
of the mortgage derivative product is more than 17 percent,
due to an immediate and sustained parallel shift in the
yield curve of plus or minus 300 basis points.

Generally, a CMO floating-rate debt class will not be subject to
the average life and average life sensitivity tests if it bears a
rate that, at the time of purchase or at a subsequent testing
date, is below the contractual cap on the instrument.  A CMO
floating-rate debt class is a debt class whose rate adjusts at
least annually on a one-for-one basis with the debt class's index. 
The index must be a conventional, widely-used market interest rate
index such as LIBOR.  Inverse floating rate debt classes are not
included in the definition of a floating rate debt class.

For purposes of this Memorandum item, mortgage derivative products
should be tested to determine whether they are "high-risk" or
"nonhigh-risk" with the frequency set forth in the Supervisory
Policy Statement.  Thus, institutions must ascertain and document
prior to purchase and no less frequently than annually thereafter,
that nonhigh-risk mortgage securities remain outside the high-risk
category.

Memorandum Item 8.a, Amortized cost of high-risk mortgage
securities.  Report the amortized cost of all high-risk mortgage
securities included in the held-to-maturity and available for sale
accounts.  The amortized cost of these securities will have been
reported in columns A and C of the body of Schedule RC-B.  

Memorandum Item 8.b, Fair value of high-risk mortgage securities.
Report the fair (market) value of the high-risk mortgage
securities reported in Memorandum item 8.a above.  The fair value
of these securities will have been reported in columns B and D of
the body of Schedule RC-B.  Do not combine or otherwise net the
fair value of any high-risk mortgage securities with the fair or
book value of any related asset, liability, or off-balance sheet
derivative instrument.

Memorandum Item 9, Structured notes.  Report in this item all
structured notes included in the held-to-maturity and 
available-for-sale accounts and reported in Schedule RC-B, items 2, 3,
and 5.  In general, structured notes are debt securities whose
cash flow characteristics (coupon rate, redemption amount, or
stated maturity) depend upon one or more indices and/or that have
embedded forwards or options or are otherwise commonly known as
"structured notes."  Include as structured notes any asset-backed
securities (other than mortgage-backed securities) which possess
the aforementioned characteristics.

Exclude from structured notes floating rate debt securities
denominated in U.S. dollars whose payment of interest is based
upon a single index of a Treasury bill rate, the prime rate, or
LIBOR and which do not contain caps, floors, leverage, or variable
principal redemption.  Furthermore, debt securities that do not
possess the aforementioned characteristics of a structured note
need not be reported as structured notes solely because they are
callable as of a specified date at a specified price.  In
addition, debt securities that in the past possessed the
characteristics of a structured note, but which have "fallen
through" their structures (e.g., all of the issuer's call options
have expired and there are no more adjustments to the interest
rate on the security), need not be reported as structured notes.

Structured notes include, but are not limited to, the following
common structures:

(1) Step-up Bonds.  Step-up securities initially pay the
investor an above-market yield for a short noncall period
and then, if not called, "step up" to a higher coupon rate
(which will be below current market rates).  The investor
initially receives a higher yield because of having
implicitly sold one or more call options.  A step-up bond
may continue to contain call options even after the bond has
stepped up to the higher coupon rate.  A multistep bond has
a series of fixed and successively higher coupons over its
life.  At each call date, if the bond is not called, the
coupon rate increases.

(2) Index Amortizing Notes (IANs).  IANs repay principal
according to a predetermined amortization schedule that is
linked to the level of a specific index (usually the London
Interbank Offered Rate -  LIBOR - or a specified prepayment
rate).  As market interest rates increase (or prepayment
rates decrease), the maturity of an IAN extends, similar to
that of a collateralized mortgage obligation.

(3) Dual Index Notes.  These bonds have coupon rates that are
determined by the difference between two market indices,
typically the Constant Maturity Treasury (CMT) rate and
LIBOR.  These bonds often have a fixed coupon rate for a
brief period, followed by a longer period of variable rates,
e.g., 8 percent fixed for two years, then the 10-year CMT
rate plus 300 basis points minus three-month LIBOR.

(4) De-leveraged Bonds.  These bonds pay investors according to
a formula that is based upon a fraction of the increase or
decrease in a specified index, such as the CMT rate or the
prime rate.  For example, the coupon might be the 10-year
CMT rate multiplied by 0.5, plus 150 basis points.  The 
de-leveraging multiplier (0.5) causes the coupon to lag overall
movements in market yields.  A leveraged bond would involve
a multiplier greater than 1.

(5) Range Bonds.  Range bonds (or accrual bonds) pay the
investor an above-market coupon rate as long as the
reference rate is between levels established at issue.  For
each day that the reference rate is outside this range, the
bonds earn no interest.  For example, if LIBOR is the
reference rate, a bond might pay LIBOR plus 75 basis points
for each day that LIBOR is between 3.5 and 5.0 percent. 
When LIBOR is less than 3.5 percent or more than 5 percent,
the bond would accrue no interest.

(6) Inverse Floaters.  These bonds have coupons that increase as
rates decline and decrease as rates rise.  The coupon is
based upon a formula, such as 12 percent minus three-month
LIBOR.

Memorandum Item 9.a, Amortized cost of structured notes.  Report
the amortized cost of all structured notes included in the 
held-to-maturity and available for sale accounts.  The amortized cost
of these securities will have been reported in columns A and C of
the body of Schedule RC-B.  

Memorandum Item 9.b, Fair value of structured notes.  Report the
fair (market) value of structured notes reported in item 9.a
above.  The fair value of these securities will have been reported
in columns B and D of the body of Schedule RC-B.  Do not combine
or otherwise net the fair value of any structured note with the
fair or book value of any related asset, liability, or off-balance
sheet derivative instrument.

Schedule RC-M, "Memoranda"

Because a variety of existing items in Schedule RC-M are being
deleted, the numbering of the remaining items is being revised to
a certain extent to produce a common numbering sequence for
Schedule RC-M on all four versions of the Call Report forms. 
Thus, the existing items for sales during the quarter of annuities
and four categories of mutual funds will become items 10.a through
10.e of Schedule RC-M for all banks.  In addition, a new item 10.f
will be added for the total sales during the quarter of
proprietary mutual funds and annuities.  In response to questions
that have been raised about the reporting of mutual fund and
annuity sales since this information began to be collected in the
first quarter 1994 Call Report, the instructions for these items
have been revised and are presented below.  (Please refer to page
38 for the revised instructions for Schedule RI, Memorandum item
2, "Income from the sale and servicing of mutual funds and
annuities.")

Item 10, Mutual fund and annuity sales (in domestic offices)
during the quarter.  Report in the appropriate subitem the amount
of mutual fund and annuity sales activity (in domestic offices)
during the quarter ending with the report date.  These sales may
be made by the reporting bank, through a bank subsidiary, or by
affiliated and unaffiliated entities.  For purposes of this item,
sales should generally be measured in terms of gross sales
dollars, not sales revenue.

In general, banks should include all sales of proprietary, private
label, and other (i.e., third party) mutual funds and annuities
that take place on bank premises and all other sales for which the
bank receives income at the time of the sale or over the duration
of the account (e.g., annual fees, Rule 12b-1 fees or "trailer
fees," and redemption fees).  Include sales conducted through the
reporting bank's trust department that are not executed in a
fiduciary capacity (e.g., trustee, executor, administrator,
conservator), but exclude sales conducted by the trust department
that are executed in a fiduciary capacity.  When reporting sales
by affiliated and unaffiliated entities, banks may rely on the
sales information provided by these entities when completing this
item.

The following are some examples of the types of transactions to be
reported as sales (when the above conditions are met):  initial
and subsequent mutual fund and annuity sales, exchanges within a
family of funds, reinvestment of income (dividends and capital
gains), and sweep account activity.  Other examples (when the
above conditions are met) include sales made on bank premises in
space that is leased to or otherwise occupied by another entity,
sales made by an entity that is not located on bank premises to
customers referred to that entity by the bank, sales to retail
customers and institutional investors, and sales of load and
no-load products.  Sales should be reported gross and not net of
redemptions.  However, with respect to sweep accounts, the bank
should report the average amount of funds swept into the money
market fund each day during the quarter and not the aggregate
total amount of funds swept into the money market fund during the
quarter.  The average may be computed from the amount of funds
swept into the money market fund for each day for the calendar
quarter or from the amount of funds swept into the money market
fund on each Wednesday during the calendar quarter.

Mutual fund is the common name for an open-end investment company
whose shares are sold to the investing public.  An annuity is an
investment product, typically underwritten by an insurance
company, that pays either a fixed or variable payment stream over
a specified period of time.  Both proprietary and private label
mutual funds and annuities are established in order to be marketed
primarily to a bank's or banking organization's customers.  A
proprietary product is a product for which the reporting bank or a
subsidiary or other affiliate of the reporting bank acts as
investment adviser and may perform additional support services. 
In a private label product, an unaffiliated entity acts as the
investment adviser.  The identity of the investment adviser is
normally disclosed in the prospectus for a mutual fund or annuity. 
Mutual funds and annuities that are not proprietary or private
label products are considered third party products.  For example,
third party mutual funds and annuities include products that are
widely marketed by numerous parties to the investing public and
have investment advisers that are not affiliated with the
reporting bank.

In a situation where Banks A, B, C, and D are subsidiaries of a
holding company and Bank A advises a family of mutual funds sold
by all four banks in the holding company and Bank A receives an
advisory fee for mutual funds sold by all four banks, Bank A
should not include the amount of mutual funds sold during the
quarter (and reported) by Banks B, C, and D in the amount of
mutual fund sales it reports during the quarter.  Bank A should
report only the mutual funds it has sold during the quarter.  In
addition, for all four banks, this family of mutual funds would be
considered proprietary funds.

Item 10.a, Money market funds.  Report the amount of sales (in
domestic offices) during the quarter ending with the report date
of mutual funds that, based on their investment objectives, can
best be characterized as money market mutual funds.  Money market
mutual funds are mutual funds which invest exclusively in
short-term debt securities with the objective of providing liquidity 
and preserving capital while also earning income.

Item 10.b, Equity securities funds.  Report the amount of sales
(in domestic offices) during the quarter ending with the report
date of mutual funds that, based on their investment objectives,
can best be characterized as equity securities funds.  Equity
securities funds are mutual funds that invest primarily in equity
securities (e.g., common stock).

Item 10.c, Debt securities funds.  Report the amount of sales (in
domestic offices) during the quarter ending with the report date
of mutual funds that, based on their investment objectives, can
best be characterized as debt securities funds.  Debt securities
funds are mutual funds that invest primarily in debt securities
(e.g., corporate bonds, U.S. Government securities, municipal
securities, mortgage-backed securities).

Item 10.d, Other mutual funds.  Report the amount of sales (in
domestic offices) during the quarter ending with the report date
of mutual funds that, based on their investment objectives, cannot
properly be reported in one of the three preceding items.  Other
funds may include mutual funds that invest in a mix of debt and
equity securities.

Item 10.e, Annuities.  Report the amount of sales (in domestic
offices) during the quarter ending with the report date of
annuities, including variable annuities.

Item 10.f, Sales of proprietary mutual funds and annuities. 
Report the total sales (in domestic offices) during the quarter
ending with the report date of proprietary mutual funds and
annuities.  These sales will also have been included in items 10.a
through 10.e above.

A general description of a proprietary product is included in the
instruction to item 10 above.  Proprietary mutual funds and
annuities are typically created by large banking organizations and
offered to customers of the banking organization's subsidiary
banks.  Therefore, small, independent banks are not normally
involved in the sale of proprietary mutual funds and annuities.  

Banks that do not sell proprietary mutual funds and annuities
should report a zero or the word "none" in this item.

Schedule RC-O, "Other Data for Deposit Insurance Assessments"

New items 11.a through 11.c have been added to Schedule RC-O.

Item 11, Adjustments to demand deposits (in domestic offices)
reported in Schedule RC-E for certain reciprocal demand balances. 
Reciprocal balances arise when two depository institutions
maintain deposit accounts with each other; that is, when a
depository institution has both a due to and a due from balance
with another depository institution.  When reporting deposit
liabilities in Schedule RC-E, reciprocal balances are to be
reported in accordance with the Glossary entry for "reciprocal
balances."  In contrast, the treatment of reciprocal balances for
deposit insurance assessment purposes under the Federal Deposit
Insurance Act (FDI Act) differs in some respects from the
treatment specified in the "reciprocal balances" Glossary entry. 
The following three items capture these differences.

Item 11.a, Amount by which demand deposits would be reduced if
reciprocal demand balances between the reporting bank and savings
associations were reported on a net basis rather than a gross
basis in Schedule RC-E.  When reporting deposit liabilities in
Schedule RC-E, reciprocal demand balances between the reporting
bank and savings associations are reported on a gross basis. 
However, for deposit insurance assessment purposes under the FDI
Act, these reciprocal demand balances are to be reported on a net
basis.  

Report in this item the amount by which demand deposits would be
reduced if reciprocal demand balances between the reporting bank
and the domestic offices of U.S. savings associations were
reported on a net basis rather than a gross basis in Schedule RC-E, 
item 5, column B, Demand deposits of "Other depository
institutions in the U.S."  For each savings association with which
the reporting bank has reciprocal demand balances, the amount of
this reduction is equal to the lesser of the demand balances "due
from" or "due to" that savings association.  Overdrawn balances
cannot be included in this calculation.  

Item 11.b, Amount by which demand deposits would be increased if
reciprocal demand balances between the reporting bank and U.S.
branches and agencies of foreign banks were reported on a gross
basis rather than a net basis in Schedule RC-E.  When reporting
deposit liabilities in Schedule RC-E, reciprocal demand balances
between the reporting bank and U.S. branches and agencies of
foreign banks are reported on a net basis.  However, for deposit
insurance assessment purposes under the FDI Act, these reciprocal
demand balances are to be reported on a gross basis.

Report in this item the amount by which demand deposits would be
increased if reciprocal demand balances between the reporting bank
and U.S. branches and agencies of foreign banks were reported on a
gross basis rather than a net basis in Schedule RC-E, item 4,
column B, Demand deposits of "Commercial banks in the U.S."  For
each U.S. branch or agency of a foreign bank with which the
reporting bank has reciprocal demand balances, the amount of this
increase is equal to the amount by which the gross "due to" demand
balance for that U.S. branch or agency was reduced before it was
reported on Schedule RC-E, item 4, column B, i.e., the lesser of
the demand balances "due from" or "due to" that U.S. branch or
agency.  

Item 11.c, Amount by which demand deposits would be reduced if
cash items in process of collection were included in the
calculation of net reciprocal demand balances between the
reporting bank and U.S. banks and savings associations in Schedule
RC-E.  For purposes of the Report of Condition, balances due from
other depository institutions reflect only those funds on deposit
for which the reporting bank has already received credit and which
are subject to immediate withdrawal.  Therefore, "due from"
balances and calculations of net reciprocal demand balances for
purposes of Schedule RC-E exclude cash items in process of
collection.  However, for deposit insurance assessment purposes
under the FDI Act, cash items in process of collection should be
included in the net reciprocal calculation.

Report in this item the amount by which demand deposits would be
reduced if cash items in process of collection were included in
the calculation of net reciprocal demand balances between the
reporting bank and the domestic offices of U.S. banks and savings
associations in Schedule RC-E, items 4 and 5, column B, Demand
deposits of "Commercial banks in the U.S." and "Other depository
institutions in the U.S.," respectively.

Schedule RI, "Income Statement"

A new Memorandum item 7 has been added to Schedule RI.

Memorandum item 7, If the reporting bank has restated its balance
sheet as a result of applying push down accounting this calendar
year, report the date of the bank's acquisition.  If the reporting
bank was acquired during the calendar year-to-date reporting
period and applied push down accounting to its balance sheet in
accordance with the "push down accounting" section of the Glossary
entry for "business combinations," report the date (month, day,
and year) as of which the acquisition took place.  For example, a
bank that was acquired as of the close of business July 1, 1995,
and applied push down accounting to its balance sheet would report
070195 in this Memorandum item in the Reports of Condition and
Income for September 30 and December 31, 1995.

Push down accounting is the establishment of a new accounting
basis for a bank in its separate financial statements (including
its Call Report) as a result of a substantive change in control. 
When push down accounting is used to account for the acquisition
of a bank that retains its separate corporate existence, the
acquired bank's assets and liabilities (Schedule RC) are restated
to their fair values as of the acquisition date.  The bank's 
post-acquisition income statements (Schedule RI) only include amounts
from the date of its acquisition through the end of the calendar
year-to-date reporting period.  

If the reporting bank has not been acquired during this calendar
year or if the reporting bank has been acquired during this
calendar year but push down accounting was not applied, the bank
should report zeros (i.e., 000000) in the month, day, and year
columns of this item.

OTHER INSTRUCTIONAL CHANGES

FASB Statement No. 114 on Loan Impairment

FASB Statement No. 114, "Accounting by Creditors for Impairment of
a Loan," as amended, is effective for fiscal years beginning after
December 15, 1994.  Subject to the additional regulatory reporting
guidance presented below, this new accounting standard must be
adopted for Call Report purposes after its effective date based on
each bank's fiscal year.  Early application in the Call Report is
also permitted.

Statement No. 114 defines impairment and sets forth measurement
methods for estimating the portion of the total allowance for loan
and lease losses attributable to impaired loans.  Statement No.
114 does not address the overall adequacy of the allowance for
loan and lease losses, but focuses instead on the allowance for
estimated credit losses on impaired loans.  Therefore, bank
management is responsible for ensuring that the overall allowance
for loan and lease losses is adequate to cover all estimated
credit losses in the loan portfolio as described in the December
1993 "Interagency Policy Statement on the Allowance for Loan and
Lease Losses."

In connection with the Federal Financial Institutions Examination
Council's review of implementation issues arising from Statement
No. 114, the Council has decided that, for risk-based capital
purposes, the portion of an institution's allowance established
pursuant to Statement No. 114 is considered general in nature and
should be reported as part of the allowance for loan and lease
losses, which is included in Tier 2 capital subject to existing
limits.  The Council has also decided to retain the existing
regulatory nonaccrual policies that are discussed in the Glossary
entry for "nonaccrual status" in the Call Report instructions.

A new Glossary entry for "loan impairment" has been prepared to
provide a summary of the new accounting standard along with
related regulatory reporting guidance.  The existing Glossary
entries for the "allowance for loan and lease losses" and
"troubled debt restructurings" have also been revised to
incorporate the provisions of Statement No. 114 and a new Glossary
entry for "foreclosed assets" has been created in order to present
the Call Report instructions' previously scattered reporting
guidance on this subject in a single location.  These Glossary
entries appear below.

Loan Impairment:  The accounting standard for impaired loans is
FASB Statement No. 114, "Accounting by Creditors for Impairment of
a Loan."  For further information, refer to FASB Statement No.
114.

Each institution is responsible for maintaining an allowance for
loan and lease losses (allowance) adequate to absorb estimated
credit losses in its entire loan and lease portfolio.  As
indicated in the Interagency Policy Statement on the Allowance for
Loan and Lease Losses dated December 21, 1993, a bank should rely
on several methods when analyzing its loan and lease portfolio and
determining the appropriate level for its allowance.  FASB
Statement No. 114 sets forth measurement methods for estimating
the portion of the overall allowance for loan and lease losses
attributable to impaired loans.  For comprehensive guidance on the
maintenance of an adequate allowance, banks should refer to the
Interagency Policy Statement and the Glossary entry for "allowance
for loan and lease losses."  National banks should also refer to
the Office of the Comptroller of the Currency's Banking Circular
201 (BC-201) and the section of the Comptroller's Handbook for
National Bank Examiners discussing the allowance for loan and
lease losses.

In general, certain loans are impaired under FASB Statement No.
114 when, based on current information and events, it is likely
that an institution will be unable to collect all amounts due
according to the contractual terms of the loan agreement, (i.e.,
both principal and interest).  An institution should apply its
normal loan review procedures when determining whether a loan
covered by FASB Statement No. 114 is impaired.  When a loan is
deemed impaired under FASB Statement No. 114, an institution may
choose to measure impairment using (1) the present value of
expected future cash flows discounted at the loan's effective
interest rate (i.e., the contractual interest rate adjusted for
any net deferred loan fees or costs, premium, or discount existing
at the origination or acquisition of the loan), (2) the loan's
observable market price, or (3) the fair value of the collateral,
if the loan is collateral dependent.  A loan is collateral
dependent if repayment of the loan is expected to be provided
solely by the underlying collateral and there are no other 
available and reliable sources of repayment.  A creditor should
consider estimated costs to sell, on a discounted basis, in the
measurement of impairment if those costs are expected to reduce
the cash flows available to repay or otherwise satisfy the loan. 
If the measure of an impaired loan is less than the recorded
investment in the loan, an impairment should be recognized by
creating an allowance for estimated credit losses for the impaired
loan or by adjusting an existing allowance with a corresponding
charge or credit to "Provision for loan and lease losses."

For purposes of the Reports of Condition and Income, impairment of
a collateral dependent loan must be measured using the fair value
of the collateral.  In general, any portion of the recorded
investment in a collateral dependent loan (including recorded
accrued interest, net deferred loan fees or costs, and unamortized
premium or discount) in excess of the fair value of the collateral
that can be identified as uncollectible should be promptly charged
off against the allowance for loan and lease losses.

An additional allowance for estimated credit losses on an impaired
loan over and above what is specified by FASB Statement No. 114
will not be automatically required by the federal banking
agencies.  However, an additional allowance on certain impaired
loans is not precluded and may be necessary based on consideration
of institution-specific factors, such as historical loss
experience compared with estimates of such losses and concerns
about the reliability of cash flow estimates, the quality of an
institution's loan review function, or controls over its process
for estimating its allowance for impaired loans under FASB
Statement No. 114.

FASB Statement No. 114 also addresses the accounting by creditors
for all loans that are restructured in a troubled debt
restructuring involving a modification of terms, except loans that
are measured at fair value or the lower of cost or fair value. 
For guidance on troubled debt restructurings, see the Glossary
entry for "troubled debt restructurings."

As with all other loans, all impaired loans should be reported as
past due or nonaccrual loans in Schedule RC-N in accordance with
the schedule's instructions.  Since full collection of principal
and interest is not expected for impaired loans, income accrual
should normally be discontinued on such loans at the time that
they first become impaired.  Any cash payments received on
impaired loans should be reported in accordance with the criteria
for the cash basis recognition of income in the Glossary entry for
"nonaccrual status."  For further guidance, see that Glossary
entry.  

Allowance for Loan and Lease Losses:  Each bank must maintain an
allowance for loan and lease losses (allowance) that is adequate
to absorb estimated credit losses associated with its loan and
lease portfolio, including all binding commitments to lend.  To
the extent not provided for in a separate liability account, the
allowance should also be sufficient to absorb estimated credit
losses associated with off-balance sheet credit instruments such
as standby letters of credit.  (These instruments are included in
the terms "loan(s)," "loans and leases" and "portfolio," as used
in this Glossary entry.)  

The term "estimated credit losses" means an estimate of the
current amount of the loan and lease portfolio (net of unearned
income) that is not likely to be collected; that is, net 
charge-offs that are likely to be realized for a loan or pool of loans
given facts and circumstances as of the evaluation date.  These
estimated credit losses should meet the criteria for accrual of a
loss contingency (i.e., a provision to the allowance) set forth in
generally accepted accounting principles (GAAP).

As of the end of each quarter, or more frequently if warranted,
the management of each bank must evaluate, subject to examiner
review, the collectibility of the loan and lease portfolio,
including any recorded accrued and unpaid interest (i.e., not
already reversed or charged off), and make appropriate entries to
maintain the balance of the allowance for loan and lease losses on
the balance sheet at a level adequate to absorb estimated credit
losses.  Management must maintain reasonable records in support of
their evaluations and entries.

Additions to, or reductions of, the allowance account resulting
from such evaluations are to be made through charges or credits to
the "provision for loan and lease losses" (provision) in the
Report of Income.  When available information confirms that
specific loans and leases, or portions thereof, are uncollectible,
these amounts should be promptly charged off against the
allowance.  All charge-offs of loans and leases shall be charged
directly to the allowance and any recoveries on loans or leases
previously charged off shall be credited to the allowance.  Under
no circumstances can loan or lease losses be charged directly to
"Undivided profits and capital reserves."  

The allowance account must never have a debit balance.  If losses
charged off exceed the amount of the allowance, a provision
sufficient to restore the allowance to an adequate level must be
charged to expense on the income statement immediately.  A bank
shall not increase the allowance account by transferring an amount
from undivided profits or any segregation thereof to the allowance
for loan and lease losses.

To the extent that a bank's reserve for bad debts for tax purposes
is greater than or less than its "allowance for loan and lease
losses" on the balance sheet of the Report of Condition, the
difference is referred to as a temporary difference.  See the
Glossary entry for "income taxes" for guidance on how to report
the tax effect of such a temporary difference.

Recourse liability accounts that arise from recourse obligations
for any transfers of loans that are reported as sales for purposes
of these reports should not be included in the allowance for loan
and lease losses.  These accounts are considered separate and
distinct from the allowance account and should be reported as
liabilities on Schedule RC, item 20, "Other liabilities."

For comprehensive guidance on the maintenance of an adequate
allowance for loan and lease losses, banks should refer to the
Interagency Policy Statement on the Allowance for Loan and Lease
Losses dated December 21, 1993.  National banks should also refer
to the Office of the Comptroller of the Currency's Banking
Circular 201 (BC-201) and the section of the Comptroller's
Handbook for National Bank Examiners discussing the allowance for
loan and lease losses.  Information on the application of FASB
Statement No. 114, "Accounting by Creditors for Impairment of a
Loan," to the determination of an allowance for credit losses on
those loans covered by that accounting standard is provided in the
Glossary entry for "loan impairment."  

For information on reporting on foreclosed and repossessed assets,
see the Glossary entry for "foreclosed assets."  

Troubled Debt Restructurings:  The accounting standards for
troubled debt restructurings are set forth in FASB Statement
No. 15, "Accounting by Debtors and Creditors for Troubled Debt
Restructurings," as amended by FASB Statement No. 114, "Accounting
by Creditors for Impairment of a Loan."  A summary of this amended
accounting standard follows.  For further information, see FASB
Statements No. 15 and No. 114.

A troubled debt restructuring is a restructuring in which a bank,
for economic or legal reasons related to a borrower's financial
difficulties, grants a concession to the borrower that it would
not otherwise consider.  The restructuring may include (1) the
transfer from the borrower to the bank of real estate, receivables
from third parties, other assets, or an equity interest in the
borrower in full or partial satisfaction of the loan or other debt
instrument (hereafter referred to collectively as a "loan"), (2) a
modification of the loan terms, or (3) a combination of the above. 
A loan extended or renewed at a stated interest rate equal to the
current interest rate for new debt with similar risk is not to be
reported as a restructured loan.

The recorded amount of a loan is the loan balance adjusted for any
unamortized premium or discount and unamortized loan fees or
costs, less any amount previously charged off, plus recorded
accrued interest.

A troubled debt restructuring that is in substance a foreclosure
or repossession should be accounted for in accordance with
paragraph 34 of FASB Statement No. 15.  Thus, regardless of
whether foreclosure or repossession proceedings have been formally
instituted, a secured loan should be treated as if assets have
been received in satisfaction of the loan when the bank obtains
physical possession of the underlying collateral from the
borrower.  In such situations, the secured loan should be
recategorized on the balance sheet as either other real estate
owned or other assets, as appropriate, at the lesser of the fair
value of the underlying collateral or the recorded amount of the
loan.  (For further information, see the Glossary entry for
"foreclosed assets.")

In cases where the new terms of the restructured troubled debt
provide for a reduction of either interest or principal (referred
to as a modification of terms), the institution should measure any
loss on the restructuring in accordance with the guidance
concerning impaired loans set forth in the Glossary entry for
"loan impairment," except that a troubled debt restructuring
involving a modification of terms before the effective date of
FASB Statement No. 114 may continue to be accounted for and
disclosed in accordance with FASB Statement No. 15 as long as the
restructured loan is not impaired based on the terms of the
restructuring agreement.  See the Glossary entry for "nonaccrual
status" for a discussion of the conditions under which a
nonaccrual asset which has undergone a troubled debt restructuring
(including those that involve a multiple note structure) may be
returned to accrual status.

Despite the granting of some type of concession by a bank to a
borrower, a troubled debt restructuring may still result in the
recorded amount of the loan bearing a market yield, i.e., an
effective interest rate that at the time of the restructuring is
greater than or equal to the rate that the bank is willing to
accept for a new extension of credit with comparable risk.  This
may arise as a result of reductions in the recorded amount of the
loan prior to the restructuring (e.g., by charge-offs).  All loans
and held-to-maturity debt securities that have undergone troubled
debt restructurings and that are in compliance with their modified
terms must be reported as restructured assets in Schedule RC-C,
Memorandum item 1 (on the FFIEC 034) or 2 (on the FFIEC 031, 032,
and 033), and Schedule RC-B, Memorandum item 4, respectively. 
However, a restructured asset that is in compliance with its
modified terms and yields a market rate need not continue to be
reported as a troubled debt restructuring in the appropriate
memorandum item in these schedules in calendar years after the
year in which the restructuring took place.

A restructuring may include both a modification of terms and the
acceptance of property in partial satisfaction of the loan.  The
accounting for such a restructuring is a two step process.  First,
the recorded amount of the loan is reduced by the fair value of
the property received.  Second, the institution should measure any
impairment on the remaining recorded balance of the restructured
loan in accordance with the guidance concerning impaired loans set
forth in FASB Statement No. 114.

A restructuring may involve the substitution or addition of a new
debtor for the original borrower.  The treatment of these
situations depends upon their substance.  Restructurings in which
the substitute or additional debtor controls, is controlled by, or
is under common control with the original borrower, or performs
the custodial function of collecting certain of the original
borrower's funds, should be accounted for as modifications of
terms.  Restructurings in which the substitute or additional
debtor does not have a control or custodial relationship with the
original borrower should be accounted for as a receipt of a 'new'
loan in full or partial satisfaction of the original borrower's
loan.  The "new" loan should be recorded at the lesser of its fair
value or the recorded amount of the original borrower's loan.

A credit analysis should be performed for a restructured loan in
conjunction with its restructuring to determine its collectibility
and estimated credit loss.  When available information confirms
that a specific restructured loan, or a portion thereof, is
uncollectible, the uncollectible amount should be charged off
against to the allowance for loan and lease losses at the time of
the restructuring.  As is the case for all loans, the credit
quality of restructured loans should be regularly reviewed.  The
bank should periodically evaluate the collectibility of the
restructured loan so as to determine whether any additional
amounts should be charged to the allowance for loan and lease
losses or, if the restructuring involved an asset other than a
loan, to another appropriate account.

For purposes of Schedules RC-B, RC-C, and RC-N, a restructured
debt security or loan is an extension of credit to a borrower with
financial difficulties that has been restructured by means of a
modification of terms.  On the other hand, the recorded amount of
an asset received by a bank in full or partial satisfaction of a
loan is not reportable as a restructured loan.  Also, a loan to a
purchaser of "other real estate owned" by the reporting bank for
the purpose of facilitating the disposal of such real estate is
not considered a restructured loan.

Foreclosed Assets:  An asset (including a borrower's own equity
securities) received in full satisfaction of a loan should be
recorded at the lesser of (1) the fair value of the asset or (2)
the recorded amount of the loan (plus the amount of any senior
debt to which the property is subject) at the time of the
foreclosure or repossession.  (The recorded amount of a loan is
the loan balance adjusted for any unamortized premium or discount
and unamortized loan fees or costs, less any amount previously
charged off, plus recorded accrued interest.)  The lesser of these
two amounts becomes the "cost" of the foreclosed asset.  The
amount by which the recorded amount of the loan exceeds the fair
value of the asset is a loss which must be charged to the
allowance for loan and lease losses at the time of foreclosure or
repossession.  If an asset is sold shortly after it was received
in a foreclosure or repossession, the value received in the sale
shall be substituted for the fair value estimated at the time of
foreclosure or repossession and adjustments made to the loss
charged against the allowance.  In those cases where property is
received in full satisfaction of an asset other than a loan (e.g.,
a debt security), the loss should be reported on the income
statement in a manner consistent with the balance sheet
classification of the asset satisfied.

An asset received in partial satisfaction of a loan should be
recorded at the fair value of the asset at the time of foreclosure
and this fair value becomes the "cost" of the foreclosed asset. 
(For further information, see the Glossary entry for "troubled
debt restructurings.")  The amount of any senior debt to which
foreclosed real estate is subject at the time of foreclosure must
be reported as a liability in Schedule RC, item 17, "Mortgage
indebtedness and obligations under capitalized leases."

After foreclosure, each foreclosed real estate asset (including
each "in-substance" foreclosed real estate asset) must be carried
at the lower of (1) the fair value of the asset minus the
estimated costs to sell the asset or (2) the cost of the asset (as
defined in the preceding paragraphs).  This determination must be
made on an asset-by-asset basis.  If the fair value of a
foreclosed real estate asset minus the estimated costs to sell the
asset is less than the asset's cost, the deficiency must be
recognized as a valuation allowance against the asset which is
created through a charge to expense.  The valuation allowance
should thereafter be increased or decreased (but not below zero)
through charges or credits to expense for changes in the asset's
fair value or estimated selling costs.

If an asset received in a foreclosure or repossession is held for
more than a short period of time, any additional losses in value
and any gain or loss from the sale or disposition of the asset is
not to be reported as a loan or lease loss or recovery and shall
not be debited or credited to the allowance for loan and lease
losses.  Such additional declines in value and the gain or loss
from the sale or disposition shall be reported net on the Report
of Income as "other noninterest income" or "other noninterest
expense," as appropriate.

Offsetting of Amounts Associated With Conditional and Exchange
Contracts

The Call Report instructions have to date briefly addressed the
topic of offsetting, i.e., netting assets and liabilities, in the
General Instructions (page 10b, dated 6-91).  The Financial
Accounting Standards Board issued Interpretation No. 39 on
offsetting in March 1992 and this interpretation took effect in
1994.  As a result, a new Glossary entry for "offsetting" is being
added to the Call Report instructions.

Offsetting:  Offsetting is the presenting of recognized assets and
liabilities on a net basis in the balance sheet.  Except where
specifically required by the instructions for the Reports of
Condition and Income, banks shall not offset or otherwise net any
assets and liabilities when preparing these reports.  However,
banks are permitted to offset assets and liabilities recognized in
the Report of Condition for forward, interest rate swap, currency
swap, option, and other conditional or exchange contracts executed
with the same counterparty when a "right of setoff" exists.  Under
FASB Interpretation No. 39, "Offsetting of Amounts Related to
Certain Contracts," a right of setoff exists when all of the
following conditions are met:

(1)  Each of two parties owes the other determinable amounts. 
Thus, only bilateral netting is permitted.

(2)  The reporting party has the right to set off the amount
owed with the amount owed by the other party.

(3)  The reporting party intends to set off.  This condition
does not have to be met for fair value amounts recognized
for conditional or exchange contracts that have been
executed with the same counterparty under a master netting
arrangement.

(4)  The right of setoff is enforceable at law.  Legal
constraints should be considered to determine whether the
right of setoff is enforceable.  Accordingly, the right of
setoff should be upheld in bankruptcy (or receivership). 
Offsetting is appropriate only if the available evidence,
both positive and negative, indicates that there is
reasonable assurance that the right of setoff would be
upheld in bankruptcy (or receivership).

According to Interpretation No. 39, a master netting arrangement
exists if the reporting bank has multiple contracts, whether for
the same type of conditional or exchange contract or for different
types of contracts, with a single counterparty that are subject to
a contractual agreement that provides for the net settlement of
all contracts through a single payment in a single currency in the
event of default or termination of any one contract.

Offsetting the assets and liabilities recognized for conditional
or exchange contracts outstanding with a single counterparty
results in the net position between the two counterparties being
reported as an asset or a liability in the Report of Condition. 
The reporting entity's choice to offset or not to offset assets
and liabilities recognized for conditional or exchange contracts must be applied consistently.  

Income From the Sale and Servicing of Mutual Funds and Annuities

The instructions for reporting this income in Schedule RI,
Memorandum item 2, have been revised in response to questions
raised since this information began to be collected in the first
quarter 1994 Call Report.

Memorandum item 2, Income from the sale and servicing of mutual
funds and annuities (in domestic offices).  Report the amount of
income earned by the reporting bank during the calendar year to
date from the sale and servicing of mutual funds and annuities (in
domestic offices).

Include in this item:

(1)  Income earned in connection with mutual funds and annuities
that are sold on bank premises or are otherwise sold by the
reporting bank, through a bank subsidiary, or by affiliated
or unaffiliated entities from whom the bank receives
income.  This income may be in the form of fees or sales
commissions at the time of the sale or fees, including a
share of another entity's fees, that are earned over the
duration of the account (e.g., annual fees, Rule 12b-1 fees
or "trailer fees," and redemption fees).  Commissions
should be reported as income as earned at the time of the
sale (i.e., on an accrual basis), but may be reported as
income when payment is received if the results would not
differ materially from those obtained using an accrual
basis.

(2)  Income from leasing arrangements with affiliated and
unaffiliated entities who lease space in bank offices for
use in selling mutual funds and annuities.  Income from
leasing arrangements should be reported as income as earned
(i.e., on an accrual basis), but may be reported as income
when payment is received if the results would not differ
materially from those obtained using an accrual basis.

(3)  Fees for providing investment advisory services for
proprietary mutual funds and annuities.

(4)  Fees for providing securities custody, transfer agent, and
other operational and ancillary services to mutual funds
and annuities that are sold on bank premises or are
otherwise sold by the reporting bank, through a bank
subsidiary, or by affiliated or unaffiliated entities from
whom the bank receives income at the time of the sale or
over the duration of the account.

Also include income from sales conducted through the reporting
bank's trust department that are not executed in a fiduciary
capacity (e.g., trustee, executor, administrator, conservator),
but exclude income from sales conducted by the trust department
that are executed in a fiduciary capacity.

In general, this income will have been included in the amount of
"Other fee income" reported in Schedule RI, item 5.b.(1) on the
FFIEC 034; item 5.f.(1) on the FFIEC 031, 032, and 033.  However,
income from leasing arrangements, or the portion thereof, that is
fixed in amount and does not vary based on sales volume may have
been reported as a deduction from Schedule RI, item 7.b, "Expenses
of premises and fixed assets."  Thus, the income to be included in
this item should be reported gross rather than net of expenses
incurred by the reporting bank or a consolidated subsidiary.

Exclude fees earned for providing securities custody, transfer
agent, and other operational and ancillary services to third party
mutual funds and annuities that are not sold on bank premises and
are not otherwise sold by the reporting bank, through a bank
subsidiary, or by affiliated or unaffiliated entities from whom
the bank receives income at the time of the sale or over the
duration of the account.

Instructional Changes Affecting Schedule RC-R, "Risk-Based
Capital"

With the expansion of the information on the notional amounts of
off-balance sheet derivatives in Schedule RC-L, as discussed
above, and the banking agencies' decision to use the amortized
cost rather than the fair value of available-for-sale debt
securities when calculating regulatory capital ratios, the
definition of "adjusted total assets" in Schedule RC-R, item 1, is
being modified accordingly.  Banks with total assets of less than
$1 billion determine the ratio of their "total capital" to their
"adjusted total assets" each quarter to determine whether they are
required to complete the entire risk-based capital schedule or
only a portion of the schedule.

In addition, for those banks that complete Schedule RC-R in its
entirety, the amortized cost of available-for-sale debt and equity
securities should be reported in items 4 through 7 of this
schedule.  The difference between the fair value and the amortized
cost of these securities should be reported in Schedule RC-R, item
8.  Furthermore, to the extent that the amount of net deferred tax
assets carried on the balance sheet and reported in Schedule RC-F,
item 2, includes the deferred tax effects of any unrealized
holding gains and losses on available-for-sale debt securities,
these deferred tax effects may be excluded from the net deferred
tax asset amount reported as a 100 percent risk weight asset in
Schedule RC-R, item 7.a.  If these deferred tax effects are
excluded, they should be reported in Schedule RC-R, item 8, and
this treatment must be followed consistently over time.

The portion of the instruction to Schedule RC-R, item 1,
addressing "adjusted total assets" has been revised as follows:

"Adjusted total assets" is defined as total assets (after
adjusting available-for-sale securities from fair value to
amortized cost) LESS cash, U.S. Treasury securities, U.S.
Government agency obligations, and 80 percent of U.S.
Government-sponsored agency obligations not held for trading PLUS
the allowance for loan and lease losses and selected off-balance
sheet items.  "Adjusted total assets" should be measured by using
amounts reported elsewhere in the Report of Condition according to
the following formula:

Total assets                      Schedule RC, item 12.c, on the
             FFIEC 034;
             Schedule RC, item 12, on the FFIEC
               031, 032, and 033

Adjustment to Available-for-      - Schedule RC-B, item 7, column D,
Sale Securities                  + Schedule RC-B, item 7, column C

LESS:

Cash (currency and coin)          - Schedule RC-M, item 3.b, on the
                 FFIEC 034;
             - Schedule RC-A, item 1.b, on the
                 FFIEC 031, 032, and 033

U.S. Treasuries (not              - Schedule RC-B, item 1, sum of 
held for trading)                    columns A and C

U.S. Government                   - Schedule RC-B, item 2.a, sum of
agencies (not held                 columns A and C, plus item 
for trading)                       4.a.(1), sum of columns A 
                 and C

80% of U.S. Government-           - 0.8 x (Schedule RC-B, item 2.b,
sponsored agencies                  sum of columns A and C, plus item
(not held for trading)              4.a.(2), sum of columns A and C, 
                 plus item 4.b.(1), sum of 
                 columns A and C)
PLUS:

Allowance for Loan                + Schedule RC, item 4.b
and Lease Losses                

Unused Commitments                + Schedule RC-L, sum of items 1.a
                 through 1.e

Financial Standby 
Letters of Credit, Net          + Schedule RC-L, item 2 minus item
                 2.a

Performance Standby 
Letters of Credit, Net           + Schedule RC-L, item 3 minus item
                 3.a

Commercial Letters 
of Credit                       + Schedule RC-L, item 4

Participations Acquired
in Acceptances                   + Schedule RC-L, item 6

Securities Lent                   + Schedule RC-L, item 8
Mortgages Transferred             + Schedule RC-L, sum of items
with Recourse                       9.a.(1), 9.b.(1), and 9.c.(1)

When-Issued Securities            + Schedule RC-L, sum of items 10.a
                 and 10.b

Forward Contracts                 + Schedule RC-L, item 14.b, sum of
                 columns A through D

Exchange-Traded Purchased        + Schedule RC-L, item 14.c.(2), sum of 
Options                            columns A through D

Over-the-Counter Purchased       + Schedule RC-L, item 14.d.(2), sum
Options                            of columns A through D

Swaps                            + Schedule RC-L, item 14.e, sum of 
                columns A through D

Other Off-Balance 
Sheet Liabilities              + Schedule RC-L, item 12

EQUALS:                          = Adjusted Total Assets

Quarterly Average for Total Assets in Schedule RC-K

As mentioned above, the banking agencies have decided to use the
amortized cost rather than the fair value of available-for-sale
debt securities when calculating regulatory capital ratios.  Thus,
unrealized holding gains and losses on available-for-sale debt
securities are excluded from the definition of Tier 1 capital. 
However, net unrealized holding losses on available-for-sale
equity securities with readily determinable fair values will be
deducted when calculating Tier 1 capital.  The instructions for
reporting average total assets in Schedule RC-K, "Quarterly
Averages," are being revised to be consistent with the regulatory
capital treatment of available-for-sale securities.

Item 7 (on the FFIEC 034), item 9 (on the FFIEC 031, 032, and
033), Total assets.  Report the quarterly average for the bank's
total assets, as defined for "Total assets," on Schedule RC, item
12.a on the FFIEC 034, item 12 on the FFIEC 031, 032, and 033,
except that this quarterly average should reflect all debt
securities (not held for trading) at amortized cost, 
available-for-sale equity securities with readily determinable fair 
values at the lower of cost or fair value, and equity securities 
without readily determinable fair values at historical cost.  In 
addition, to the extent that net deferred tax assets included in the 
bank's total assets, if any, include the deferred tax effects of any
unrealized holding gains and losses on available-for-sale debt
securities, these deferred tax effects may be excluded from the
determination of the quarterly average for total assets.  If these
deferred tax effects are excluded, this treatment must be followed
consistently over time.

Other Instructional Clarifications

As previously noted in Financial Institutions Letter FIL-69-94,
dated November 1, 1994, the Call Report instructions are being
clarified in response to questions about the reporting of lines of
credit extended to bank insiders, participations in pools of
residential mortgages, refundable loan commitment fees, and stock
subscription payments.  A more detailed discussion of these
instructional matters follows.  

"Extensions of credit" to executive officers, directors, principal
shareholders, and their related interests -- Banks report
information on "extensions of credit" to insiders in Schedule
RC-M, item 1.  
As defined in Federal Reserve Board Regulation O, an
"extension of credit" includes the granting of a line of credit. 
Banks that have granted a line of credit to an insider often ask
what they should report as the amount of the extension of credit
in this situation.  The Call Report instructions for
Schedule RC-M, item 1, are being revised to indicate that the
amount of the extension of credit is normally the total amount of
the line of credit extended to the insider, not just the current
balance of the funds that have been advanced to the insider under
the line of credit.

Glossary entry for "participations in pools of residential
mortgages" -- Questions have been asked periodically about the
meaning of the term "residential mortgages" as it is used in this
Glossary entry.  The term refers to first lien 1-to-4 family
residential mortgages and the Glossary entry is being clarified
accordingly.

Refundable loan commitment fees -- Prior to loan closing,
refundable loan commitment fees that a bank holds meet the
definition of a "deposit" in the FDI Act.  A reference to these
fees is being added to the list of items that are to be reported
as deposits in the "Definitions" section of the instructions for
Schedule RC-E, "Deposit Liabilities."

Stock subscription payments -- Payments that a bank has received
from stock subscribers prior to the issuance of the stock may be
either refundable or nonrefundable under the terms of the stock
offering.  When the payments are refundable, the funds held by the
bank meet the definition of a "deposit" in the FDI Act.  When they
are nonrefundable, the funds would be considered "other
liabilities" and not a deposit.  This distinction is being
explained in the relevant instructions.