Weekly Report of Assets and Liabilities for Large U.S. Branches and Agencies of Foreign Banks

WEEKLY REPORT OF ASSETS AND LIABILITIES
FOR LARGE U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS

INSTRUCTIONS
Purpose of Report

Preparation of Reports

This report provides current information on credit developments and sources of funds at U.S. branches
and agencies of foreign banks excluding their International Banking Facilities (IBFs). These data are
used to estimate bank credit and to analyze banking
and monetary conditions.

Report all amounts outstanding as of the close of
business on Wednesday of each week. All dollar
amounts should be reported to the nearest thousand.
Negative entries are not appropriate. The completed
report should be forwarded to the appropriate
Federal Reserve Bank by the day and time specified
on the FR 2069 reporting form.

Scope
The Weekly Report of Assets and Liabilities for Large
U.S. Branches and Agencies of Foreign Banks
(FR 2069) is similar to the quarterly Report of Assets
and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002) required by the federal
banking supervisory agencies. One major difference
is that the FR 2069 collects data on the branch or
agency excluding its own IBF. The position of the reporting branch or agency with its own IBF is reflected
in the branch or agency’s overall net due from/due to
position with related depository institutions in different states and Federal Reserve Districts. In addition,
the FR 2069 is abbreviated.
For purposes of the FR 2069, “U.S. branches and
agencies” are those institutions domiciled in the 50
states of the United States and the District of Columbia. “Foreign banks” are those companies that are organized under the laws of a foreign (non–U.S.) country, Puerto Rico, or a U.S. territory or possession that
engage in the business of banking. Each designated
U.S. branch or agency is requested to submit a report
whether state–chartered or federally–licensed, and
in general, reports should not be consolidated for
multiple branches or agencies of a given foreign
bank. (For possible exceptions, please refer to the
more detailed discussion of consolidation below.)
Consolidation
The consolidation procedure used on the FR 2069 is
identical to that used on the FFIEC 002.
Each designated branch or agency of a given foreign
bank is requested to file a separate report unless the
foreign bank submitted a consolidated FFIEC 002 for
two or more of its offices. In such cases a consolidated FR 2069 also should be filed.

Foreign
(Non-U.S.)
Transactions

Currency-Denominated

Foreign currency-denominated assets and liabilities
held at U.S. offices of a depository institution must be
converted to U.S. dollars each reporting week under
procedures stipulated below and included in the appropriate existing line items of the FR 2069. In principle, the conversion procedure stipulated below is the
same as that used for the Report of Transaction Accounts, Other Deposits, and Vault Cash (FR 2900),
altered only to reflect that the FR 2069 collects singleday data only (as of each Wednesday), not daily data.
The conversion principles also apply to foreign currency-denominated transactions relating to any balance sheet item held at a depository institution’s U.S.
offices and included in the FR 2069.
Conversion to U.S. dollars. Transactions denominated in non–U.S. currency must be valued in U.S.
dollars each reporting week at either the exchange
rate prevailing on the Tuesday immediately preceding (that is, the day before) the Wednesday report
date or the exchange rate prevailing on the Wednesday report date.
Regardless of which of the above two options is
elected, the exchange rates to be used for this conversion are either the 10:00 a.m. rates quoted for
major currencies by the Federal Reserve Bank of
New York, or the noon buying rates certified by the
Federal Reserve Bank of New York for customs purposes, or some other consistent series of exchange
rate quotations. (If transactions are conducted in European Currency Unit (ECU) or some other currency
basket, consistent series of exchange rate quotations
either for the basket unit or for the corresponding individual exchange rates may be used.)
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Once a depository institution chooses to value foreign
currency transactions by using either the Tuesday
method or the report day method, it must use that
method consistently over time for all Federal Reserve
reports. If at some future time thereafter the depository institution wishes to change its valuation procedure
from one of these two methods to the other, the
change must be applied to all Federal Reserve reports and then used consistently thereafter. Please
notify your Federal Reserve Bank of any such
change.
Definitions
In general, item definitions on the weekly report correspond to item definitions on the FFIEC 002. A table
that indicates the item-by-item relationship between
this report and the FFIEC 002 accompanies these
instructions. Definitions for the items referenced in
the FFIEC 002 are not repeated in these instructions
for the weekly report. For such definitions, please refer to the instructions for preparation of the
FFIEC 002.
As noted earlier, the office coverage of the FR 2069
excludes the respondent’s IBF. Thus, unless otherwise indicated, references to the FFIEC 002 correspond to Column A (Total reporting branch or agency
including its IBF) minus Column B (IBF only) of that
report.
For items that do not correspond exactly to
FFIEC 002 items, or where additional instructions are
needed, supplementary instructions are provided below.
Supplementary Instructions
Item 2. Trading assets. U.S. Treasury securities
and U.S. Government agency obligations held in
trading assets should be reported in Item 2.a. All other assets held in trading assets should be reported in
Item 2.b, including revaluation gains on interest rate,
foreign exchange rate, and other commodity and equity contracts.
Item 5. Loans and leases. In conformity with their
treatment on the FFIEC 002, loans (Items 5.a
through 5.f) should be reported net of unearned income to the extent possible. Netting for any remaining unearned income (as is done on Schedule C, Part
I, Item 10 of the FFIEC 002) should be performed on
FR 2069 item 5.f, “All other loans.” (That is, FR 2069
Item 5.f should be reduced by the amount of any remaining unearned income.)

Item 5.f. All other loans. This item includes loans
to other depository institutions in the U.S., loans to
banks in foreign countries, loans to foreign governments and official institutions, loans to other financial
institutions, loans to state and local governments,
loans to individuals for personal expenditures, all other loans not elsewhere classified, and lease financing
receivables.
Along with loans to nonbank depository institutions
and to other unrelated or related financial institutions
whose primary purpose is to extend credit for business or personal purposes, this item also includes
loans to investment banks and to bank and thrift holding companies. However, loans to nonbank brokers
and dealers in securities (or to the dealer departments of investment banks) and loans to investment
companies should be reported in Item 5.c, “Loans for
purchasing or carrying securities (secured or unsecured) including loans to brokers and dealers.” Resale agreements with nonbank brokers and dealers
should be reported in Item 4.b.
This item also includes bankers acceptances created
and held by the reporting branch or agency when the
account party is a bank in a foreign country, or a foreign government or official institution. The treatment
of such acceptances corresponds to their treatment
on the FFIEC 002.
Also, see instructions above for Item 5 for treatment
of unearned income.
Items 7 and 13. Net due from/due to head office
and other related depository institutions in the
U.S. and in foreign countries. For the reporting
branch or agency, excluding its IBF, report only a
single net position in either Item 7 or 13 that
represents its net position with the head office and related depository institutions. NOTE: The net due
from/due to position of the reporting branch or
agency’s own IBF with other related depository institutions is to be excluded from these items. The position of the reporting branch or agency with its own IBF
is to be reflected in the overall net due from/due to
position of the branch or agency. If the single net
amount is a net due from, it should be entered in Item
7; if the single net amount is a net due to, it should be
entered in Item 13. Under no circumstances should
an amount be reported in both Items 7 and 13.
Item 8. Total assets. Report the sum of Items 1, 2.a,
2.b, 3.a, 3.b, 4.a, 4.b, 5.a, 5.b, 5.c, 5.e, 5.f, 6, and 7.
Item 10. Borrowings. This item consists of demand
notes issued to the U.S. Treasury, federal funds purchased and securities sold under agreements to reJune 2004

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purchase, and other borrowed money. Borrowings to
be included in Item 10 of the FR 2069 are equivalent
to FFIEC 002 items (see attached tables).
For Item 10.a, see the Glossary section of the FFIEC
002 instructions for the definition of ‘‘Commercial
Banks in the U.S.”
For Item 10.b, include borrowings from all other entities, including a Federal Reserve Bank or Federal
Home Loan Bank.
Item 14. Total liabilities. Report the sum of Items
9.a, 9.b, 10.a, 10.b, 11, 12, and 13.
If the reporting branch or agency has an IBF, then “Total assets,” Item 8, and “Total liabilities,” Item 14, of
the FR 2069 may not equal their counterparts in the
FFIEC 002 (Schedule RAL, Items 3 and 6, respectively) owing to the exclusion of the IBF’s balances on
the FR 2069 (except to the extent that they are included in Items 7 or 13).
Item M.1. Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts (included in Item 2.b above). The
frequency with which revaluation gains are restated
(marked to market) may differ across reporting
banks. Those that revalue weekly should report the
appropriate amount each week in Item M.1. Those
that revalue less frequently should report the most recent value of “revaluation gains on interest rate,
foreign exchange rate, and other commodity and equity contracts” until a new value becomes available.

Item M.2. Revaluation losses on interest rate, foreign exchange rate, and other commodity and equity contracts (included in Item 11 above). The frequency with which revaluation losses are restated
(marked to market) may differ across reporting
banks. Those that revalue weekly should report the
appropriate amount each week in Item M.2. Those
that revalue less frequently should report the most recent value of “revaluation losses on interest rate, foreign exchange rate, and other commodity and equity
contracts” until a new value becomes available.
Item M.3. Commercial and industrial loans (corresponds definitionally to credit types covered by
Item 5.e above). Outstanding principal balance of
assets sold and securitized with servicing retained or
with recourse or other seller-provided credit enhancements. The conduits into which the loans are
sold finance the purchase of the loans by issuing securities, often referred to as collateralized loan obligations, or sometimes collateralized bond obligations or
collateralized debt obligations. The amounts reported should include all loans that have been sold
and securitized and that are still outstanding. Because they have been reported as sold, these securitized commercial and industrial loans are no longer
included as assets on the balance sheet of the reporting bank and thus are not reported in item 5.e above.
This item is comparable to the FFIEC 002, Schedule
S, Item 1, Column F.

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Relationship of FR 2069 Items to Items on the Report of Assets and Liabilities
of U.S. Branches and Agencies of Foreign Banks (FFIEC 002)

FR 2069

FFIEC 002

ASSETS
Item 1
Item 2.a
Item 2.b
Item 3.a
Item 3.b
Item 4.a
Item 4.b
Item 5.a
Item 5.b
Item 5.c
Item 5.d
Item 5.e
Item 5.f1
Item 6
Item 7
Item 8

Schedule RAL, Column A minus Column B, Item 1.a
Schedule RAL, Column A minus Column B, Item 1.f(1)
Schedule RAL, Column A minus Column B, Item 1.f(2)
Schedule RAL, Column A, Items 1.b(1) + 1.b(2) + Column A minus Column B,
Item 1.c(2)a
Schedule RAL, Column A minus Column B, Items 1.c(1) + 1c(2)b + 1.c(3) +
1.c(4)
Schedule RAL, Column A minus Column B, Items 1.d(1)a + 1.d(2)a
Schedule RAL, Column A minus Column B, Items 1.d(1)b + 1.d(2)b
Schedule C, Part I, Column A minus Column B, Item 1
Schedule C, Part I, Column A minus Column B, Items 2.a(1) + 2.a(2)
Schedule C, Part I, Column A minus Column B, Item 7
Not applicable
Schedule C, Part I, Column A minus Column B, Items 4.a + 4.b
Schedule C, Part I, Column A minus Column B, Items 2.b + 2.c(1) + 2.c(2) + 3
+ 6 + 8 + 9.a + 9.b minus 10
Schedule RAL, Column A, Items 1.g(1) + 1.g(2) + Column A minus Column B,
Item 1.h
See Supplementary Instructions.
See Supplementary Instructions.

LIABILITIES
Item 9.a
Item 9.b
Item 10.a
Item 10.b
Item 11
Item 12
Item 13
Item 14

Schedule E, Column A, Item 7
Schedule E, Column C, Item 7
Schedule RAL, Column A minus Column B, Part of Items 4.b.(1)a + 4.b.(2)a
from commercial banks + Schedule P, Column A minus Column B, Items
1.a + 1.b
Schedule RAL, Column A minus Column B, Items 4.b.(1)b + 4.b.(2)b + Part of
Items 4.b.(1)a + 4.b.(2)a from noncommercial banks + Schedule P, Column
A minus Column B, Items 2.a + 2.b + 3
Schedule RAL, Column A minus Column B, Item 4.e
Schedule RAL, Column A, Item 4.d + Column A minus Column B, Item 4.f
See Supplementary Instructions.
See Supplementary Instructions.

MEMORANDA
Item M.11
Item M.21
Item M.31

Schedule RAL, Column A minus Column B, Memo Item 10
Schedule RAL, Column A minus Column B, Memo Item 11
Schedule S, Column F, Item 1

1. See Supplementary Instructions.
June 2004