Agency Information Collection Activities: Announcement of Board Approval under Delegated Authority and Submission to OMB (FED extends – with revisions – certain reporting requirements of foreign banking organizations)

The Board of Governors of the Federal Reserve System (FED) has published in the Federal Register its approval to extend for three years – with revisions – certain reporting requirements of foreign banking organizations (FBOs). The approval follows a corresponding prior consultation which was launched in June 2022 (please see EventID 15865 in this context for more information).
Specifically, the FED will extend – with some changes – the collection of the following reports:
FR Y-7N: This report must be submitted for each non-bank subsidiary in the U.S. annually or quarterly by foreign banking organizations depending upon the total asset size of the subsidiaries (more than $1 billion quarterly, between $500 million and less than $1 billion annually). It collects information on financial statements (balance sheet and income statement, changes in equity) and on changes in loan or loss allowances and off-balance-sheet items.
FR Y-7NS: This report basically collects – on an annual basis – the same data, in an aggregated form, for each non-bank subsidiary in the U.S. It simply consists of 4 data items, namely net income, total assets, equity capital, and total off-balance-sheet items and applies to subsidiaries with assets of at least $250 million and less than $500 million.
FR Y-7Q: This report, to be submitted to the Federal Reserve by FBOs either annually or quarterly – seeks information on the financial strength of the FBO. Bank holding companies need so submit the report quarterly, other FBOs annually; they must provide information as to their capital and assets, including Tier 1 and risk-based capital and risk-weighted assets and total consolidated assets.
The proposed changes as discussed in the above noted Event will NOT be implemented as proposed. Specifically, in view of responses received to the consultation, the FED has decided to require in-scope institutions to report total combined U.S. assets net of inter-company balances and transactions in FR Y-7Q on a quarterly average basis for the previous quarter using monthly data (the suggestion was to use daily data). Smaller institutions that are annual filers of FR Y-7Q (institutions with assets of less than $100 billion) will have to report these balances and transactions for the fourth quarter only, while larger quarterly filers must report quarterly, but can retrieve the values from their FR Y–15 reports.
Furthermore, In light of the feedback, the Board will mandate calendar period reporting only for Line item 6(a) – Total combined U.S. assets net of intercompany balances and transactions; Line item 6(b) – Total combined U.S. assets net of intercompany balances and transactions, utilizing a quarterly average; and Line item 7 – Total on-branch assets. The other line items may still be reported on a fiscal year basis. Accordingly, the FED will also retain the „as of“ reporting fields for the remaining line items.
Finally, in order to give financial institutions sufficient time, it has extended the deadline by which the FR Y–7Q must be filed. It is thereby taking a staged approach, as outlined in the Event timeline.