Annual Report of Foreign Banking Organizations

General Instructions for Preparation
of the Annual Report of
Foreign Banking Organizations
(FR Y-7)

Who Must Report
A Foreign Banking Organization (FBO) is required to file
this report (termed a Reporter for purposes of the FR Y-7)
unless the FBO does not meet the requirements of and is
not treated as a qualifying FBO under section 211.23 of
Regulation K.' Note, however, that a FBO that is a FR Y-7
Reporter must report in Report Item 2, the Organization
Chart, of the Annual Report of Bank Holding Companies
(FR Y-6) any interests the FBO holds through a bank
holding company (BHC) organized under U.S. law. (See
the instructions for the FR Y-6 for additional information.)

Where and When to Submit the
Report
The original and number of copies of the completed report
required by the Federal Reserve Bank should be filed with
the appropriate Federal Reserve Bank (see the Glossary).
All copies must include the required attachments.
All reports shall be made out clearly and legibly,
submitted in typewritten form or in ink. Reports
completed in pencil will not be accepted.

In the case of multi-tiered FBOs that are direct or indirect
subsidiaries of another FBO the reporting requirements of
the FR Y-7 can be satisfied by submitting the required
information as part of the FR Y-7 submission of the toptier FBO. In such a unified submission, subsidiary FBOs
need not provide responses to Report Items 1 and 2 if
those responses would duplicate information provided by
the top-tier FBO. The top-tier FBO and each subsidiary
FBO must provide a response to Report Item 3. In
addition, subsidiary FBOs included within the tiered
report need not provide a separate response to Report Item
4 unless the subsidiary FBO claims the limited exemption
pursuant to section 211.23(c) or Regulation K (12 CFR
211.23(c)).

The FR Y-7 is required to be submitted no later than four
months after the Reporter's fiscal year end. If this deadline
cannot be met, the Reporter must advise the appropriate
Federal Reserve Bank as soon as possible, and normally
not later than 30 calendar days before the deadline, and
request an extension, stating the reason for the request and
the date on which the information will be filed. As a
general rule, extensions beyond 30 calendar days will not
be granted. The Reporter will be advised before the
deadline as to whether an extension will be granted. As
part of the consideration of the extension request, the
Federal Reserve Bank may require the submission of draft
information and a commitment as to when the final
information will be submitted.

Additional copies of this form and instructions may be
obtained from the Federal Reserve Bank in the district
where the Reporter submits its FR Y-7 report or may be
found on the Federal Reserve Board's public web site
(www. federalreserve. gov).

The filing of a completed report will be considered
timely, regardless of when the report is received by the
appropriate Federal Reserve Bank, if the report is mailed
first class and postmarked no later than the third calendar
day preceding the submission deadline. In the absence of
a postmark, a Reporter whose completed FR Y-7 is
received late may be called upon to provide proof of

1
A FBO that does not meet the requirements and is not treated as a
qualifying FBO must file the Annual Report of Bank Holding Companies
(FR Y-6) instead of the FR Y-7.

Instructions for Preparation of Reporting Form FR Y-7
General Instructions December 2006

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General Instructions
timely mailing. A "Certificate of Mailing" (U.S. Postal
Service form 3817) may be used to provide such proof. If
an overnight delivery service is used, entry of the
completed original report into the delivery system on the
day before the submission deadline will constitute timely
submission. In addition, the hand delivery of the
completed original report on or before the submission
deadline to the location to which the report would
otherwise be mailed is an acceptable alternative to mailing
the report.

C. Confidentiality

Companies that are unable to obtain the required officials'
signatures on their completed original reports in sufficient
time to file these reports so that they are received by the
submission deadline should contact the Federal Reserve
Bank to which they mail their original reports to arrange
for the timely submission of their report information and
the subsequent filing of their signed reports.

The exempt categories include (but are not limited to)
“trade secrets and commercial or financial information
obtained from a person and privileged or confidential”
(exemption 4), and information that, if disclosed, “would
constitute a clearly unwarranted invasion of personal
privacy” (exemption 6). A reporter may request
confidential treatment for any information submitted on
the FR Y-7 that the reporter believes is exempt from
disclosure under FOIA. The Reporter must follow the
steps outlined immediately below, and certify on the
completed and signed Cover Page to the FR Y-7 that
these steps have been followed.

If the submission deadline falls on a weekend (Saturday or
Sunday) or holiday, the report must be received by 5:00
P.M. on the first business day after the weekend or
holiday. Any report received after 5:00 P.M. on the first
business day after the weekend or holiday deadline will be
considered late unless it has been postmarked three
calendar days prior to the original weekend or holiday
submission deadline (original deadline), or the institution
has a record of sending the report by overnight service one
day prior to the original deadline.

How to Prepare the Report
A. Basis of Reporting Financial
Information
If the Reporter prepares consolidated financial statements
for any purpose (including, without limitation, published
financial statements, or financial statements to any other
banking supervisor), the financial statements provided in
the FR Y-7 must also be reported on a consolidated basis
unless otherwise instructed in this report.

B. Substitution of Information
When strictly complying with specific requirements in
the report involves undue burden or expense, the Board
may, upon receipt of a written request submitted through
the appropriate Federal Reserve Bank, normally at least
30 calendar days before the filing date of the report,
permit the substitution of appropriate information.
Instructions for Preparation of Reporting Form FR Y-7
General Instructions December 2006

Once submitted, an FR Y-7 report becomes a Federal
Reserve Board (Board) record and may be requested by
any member of the public pursuant to the Freedom of
Information Act (FOIA), 5 U.S.C. § 552. Under the
FOIA, Board records generally must be disclosed unless
they are determined to fall, in whole or in part, within the
scope of one or more of the FOIA exemptions from
disclosure. See 5 U.S.C. § 552(b)(l)-(9).

Reporters requesting confidential treatment of information are hereby advised that Board policy, particularly in
those instances in which an FBO owns a U.S. bank
subsidiary, strongly favors disclosure of the names and
the number and percentage of voting securities provided
in response to Report Item 3 that pertain to shareholders
who control 10 percent or more of any class of voting
shares of a FBO, unless there is shown to be a welldefined present threat to the liberty or personal security of
individuals. This policy shall not preclude a reporter
from raising any ground for confidential treatment of such
information that may be available under the FOIA.
Reporters that seek confidential treatment for specific
report item responses to the FR Y-7 must divide their
report submission into two parts, filed simultaneously.
The separately bound confidential volume should be
accompanied by a cover page marked “confidential” and
include only those report item responses for which
confidential treatment is requested. The public volume
should include responses to all of the report items. The
responses to those items for which confidential treatment
is requested should indicate that the responsive data may
be found in the confidential volume. They also should
clearly describe or visually indicate the amount of
information for which confidential treatment is sought.

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General Instructions
The Reporter also must submit a letter concurrent with
submission of the two-part FR Y-7, identifying the
specific information for which confidential treatment is
sought, providing legal justification for the request, and
describing the specific harm that would result from
disclosure of the information. Unsupported or conclusory
statements that disclosure will cause competitive harm or
result in an invasion of privacy will be considered
insufficient to support the request for confidential
treatment.
Reporters must submit a request for confidential treatment
at the time of filing this report even if they previously
requested (and were or were not accorded) confidential
treatment for the same information as filed on a previous
FR Y-7 report or as otherwise provided to the Board.
Information for which confidential treatment is requested
may be released subsequently by the Federal Reserve
System if the Board determines that the disclosure of such
information is required by law or in the public interest. In
general, Federal Reserve staff will notify the reporter
before releasing information for which confidential
treatment has been requested. For further information on
the procedures for requesting confidential treatment and
the Board’s procedures for addressing such requests,
consult the Board’s Rules Regarding Availability of
Information, 12 CFR part 261, including 12 CFR 261.15,
which governs requests for confidential treatment.

E. Signatures
The Annual Report of Foreign Banking Organizations
shall be signed by a duly authorized official (see the
Glossary) of the Reporter.

F. Amended Reports
The Federal Reserve may require the filing of an
amended Annual Report of Foreign Banking Organizations if the report as previously submitted contains
significant errors. In addition, a Reporter should file an
amended report when internal or external auditors make
audit adjustments that result in a restatement of financial
statements previously submitted to the Federal Reserve.
The Reporter must follow the steps outlined immediately
above with respect to any portion of an amended report
for which it seeks confidential treatment.

G. Monitoring of Regulatory Reports
Federal Reserve Banks will monitor the filing of all
regulatory reports to ensure that they are filed in a timely
manner and are accurate and not misleading. Reporting
deadlines are detailed in the Where and When to Submit
the Report section of these general instructions.
Additional information on the monitoring procedures is
available from the Federal Reserve Banks.

D. Additional Information
The Federal Reserve System reserves the right to require
the filing of additional information if the information
submitted in the FR Y-7 report is not sufficient to appraise
the FBO's ability to be a source of strength and support to
its U.S. banking operations, or to determine that the FBO
and its affiliates are in compliance with applicable laws
and regulations. The Reporter must follow the steps
outlined immediately above with respect to any additional
information for which it seeks confidential treatment.

Instructions for Preparation of Reporting Form FR Y-7
General Instructions December 2006

GEN-3

Report Item Instructions
Report Item 1: Financial Information
Regarding the Foreign Banking
Organization (FBO)
Report Item 1(a) Financial Statements
Submit financial statements and notes in English,
covering the Reporter's two most recent fiscal years that
include or are equivalent to balance sheets and income
statements. If the Reporter prepares consolidated
financial statements for any purpose (including without
limitation, for published financial statements or
submission to any other banking supervisor), the financial
statements provided in the FR Y-7 must also be reported
on a consolidated basis, unless otherwise instructed in
this report.
The financial statements should be stated in the local
currency of the country in which the head office of the
Reporter is located. They should be prepared in
accordance with local accounting practices.
If the financial statements have not been finalized by the
due date of this report, preliminary figures must be
provided. The Reporter must advise the appropriate
Federal Reserve Bank before the deadline. Finalized data
are due within 30 calendar days from the deadline date.
Also, respond to the following questions:
(circle one)
Have the financial statements been
certified by an independent public
accountant?
Do the financial statements consolidate
all material subsidiaries that are
majority-owned financial companies?
Do the financial statements reflect any
significant changed in accounting
standards or policies used in preparing
such statements since the last filing of
the FR Y-7?

Yes No

Yes No

Yes No

If yes, describe the changes in a note or attachment to the
financial statements.

Report Item 1(b) Annual Report to Shareholders
Submit one copy of the most recent annual report
prepared for shareholders of the Reporter accompanied by
one copy of an English translation.

Report Item 2: Organization
Information for the FBO
Report Item 2(a) Organization Chart
Submit an organization chart indicating the Reporter and
its interests in all entities defined below. The organization
chart may be in a diagram or list format. It should
disclose:
1. Full legal names (use abbreviations only if part of the
legal name) use popular name for branches, agencies,
and representative offices);
2. Legal address (i.e., city and state/country) of each
entity;
3. Intercompany ownership and control relationships
(including an interest held by a Reporter in an entity
through more than one direct holder); and
4. Percentage ownership (of voting or nonvoting equity
or other interests) by each direct holder.
As described below, some entities not reportable on the
FR Y-10 1 are nevertheless reportable on the FR Y-7.
These entities may be reported on the FR Y-7
organization chart in a format convenient for the
Reporter. For example, a Reporter may provide a single
organization chart annotated to indicate entities reportable
on the FR Y-7 but not on the FR Y-10. As another option,
a Reporter may provide an organization chart covering
FR Y-10 reportable entities supplemented by a list of
entities reportable on the FR Y-7 but not on the
FR Y-10.
If the Reporter in the aggregate controls shares of more
than one class of the entity's voting shares, the Reporter
should report information for the class in which the
Reporter controls the highest percentage.
1
The FR Y-10F is scheduled to be consolidated into the FR Y-10 as of July 1,
2007. Until that time, all references in these instructions to the FR Y-10 should be
construed as references to the FR Y-10F.

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Instructions for Preparation of Reporting Form FR Y-7
Report Item Instructions December 2006

Report Item Instructions
Entities reportable on the FR Y-10 and thus reportable
on the FR Y-7 Organization Chart:

(7) Directly or indirectly held subsidiaries that are direct
or indirect holders of any of the above companies.

(1) The top-tier FBO itself and lower-tier FBOs;

Additional entities reportable on the FR Y-7
Organization Chart:

(2) Branches, agencies, and representative offices that
are located in the United States, and any non-U.S.
branches that are managed by a U.S. branch or
agency of each FBO that is a foreign bank;
(3) A Banking Company, as defined in the Glossary, in
which a Reporter directly or indirectly in the
aggregate controls, owns, or holds more than 5
percent of any class of voting shares, 2 or which the
Reporter otherwise directly or indirectly controls; 3
(4) U.S. companies and non-U.S. companies directly
or indirectly engaged in business in the United
States other than BHCs, U.S. banks, or FBOs
("nonbanking companies" as defined in the
Glossary) that the Reporter controls2 directly or
indirectly. This includes financial and other
nonbanking subsidiaries of national or state banks;
(5) Specific merchant banking or insurance company
investments made by an affiliate of a financial
holding company (FHC) are reportable if the FHC
and its affiliates on a combined basis acquired
more than 5 percent of the voting shares, assets, or
ownership interests of a company engaged in a
nonfinancial activity at a cost that exceeds the
lesser of 5 percent of the parent FHC's Tier 1
capital or $200 million;
(6) Any entity not mentioned above that is required to
file a regulatory financial report with the Federal
Reserve System; and

2

In general, a Reporter is considered to control all shares which it or its
subsidiaries have the power to vote, but not shares held in a fiduciary
capacity. However, shares held by a Reporter (or its subsidiary) as
fiduciary are deemed controlled by the Reporter if the shares are held for
the benefit of employees, shareholders, members, or affiliates of the
Reporter or any Reporter subsidiary, or if the shares are of a BHC or bank
organized under U.S. law and the Reporter has directly or indirectly had the
sole power to vote the shares for more than 2 years. In addition, a security
that is convertible into a voting security at a holder's option is deemed to be
shares of the class into which the security is convertible. The Reporter
should check to see if any other basis for control exists (such as a
management agreement or the power to control the election of a majority of
directors).
3
To determine whether one company controls another company, apply
the standard for control as defined in the Glossary of the instructions for
completing the FR Y-IO.

Instructions for Preparation of Reporting Form FR Y-7
Report Item Instructions December 2006

(1) Include nonbanking companies (U.S. companies and
non-U.S. companies engaged in business in the
United States) in which the Reporter directly or
indirectly in the aggregate controls more than 5
percent, but less than 25 percent, of the outstanding
shares of any class of voting securities. With respect
to such companies, a Reporter need not report on its
organization chart the exact percentage of the voting
shares that it controls, and need only indicate that the
company is not reportable on the FR Y-10; and
(2) Include any company that the Federal Reserve
System determines should be reported.
Interests not reportable on the FR Y-7 Organization
Chart:
(1) Interests Reportable on the FR Y-6: Interests
reportable on the FR Y-6 instead of the FR Y-7,
which includes interests held directly or indirectly
by any subsidiary of the Reporter that is a BHC
organized under U.S. law.
(2) Non-U. S. Entities Not Engaged in Business in the
United States: Non-U.S. companies that are not
engaged in business in the U.S. and are not
otherwise reportable;
(3) Entities Held Under Section 211.23(f)(5) of Regulation K (12 CFR 211.23(f)(5)): An interest in an
entity held under section 211.23((f)(5) should not be
reported on the organization chart. (These interests
should be reported in Report Item 2(b).);
(4) Companies Held by a Small Business Investment
Company (SBIC): Any company controlled directly
or indirectly by a SBIC that is registered with the
Small Business Administration, unless the interest in
the company is a reportable merchant banking or
insurance company investment on the FR Y-10.
However, if a FBO that is a FHC engaged in
merchant banking activities holds shares in the same
merchant banking investment through a merchant
banking vehicle as well as through a SBIC, the
entire investment is treated as the merchant banking
investment, subject to the reporting criteria.

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Report Item Instructions
(5) Debts Previously Contracted: An interest in a
company, other than a U.S. bank or BHC,
acquired in full or in part in satisfaction of a debt
previously contracted or that solely holds assets
acquired in satisfaction of a debt previously
contracted;
(6) Interests Held as Collateral: An interest held
solely as collateral securing an extension of credit;
(7) Companies Controlled Through an Insurance
Under-writer: An interest in a nonbanking
company organized under U.S. federal or state
law, if controlled directly or indirectly by an
insurance underwriter. This exception does not
apply to any of the following: (a) a Nonbanking
Company that is the underwriter's highest-tier
provider in the U.S. of any primary line of
insurance, or (b) any interest that is a reportable
merchant banking or insurance company
investment;
(8) Advising and Administering a Mutual Fund: If a
Reporter directly or indirectly advises or administers a mutual fund, the mutual fund is not reportable
on the Reporter's FR Y-7 unless other ties
between the Reporter and the fund meet the
standard for control as defined in the Glossary of
the instructions for completing the FR Y-10;
(9) Inactive Companies: An interest in any company
that exists as a matter of law, but does not engage
in any business activity. The company becomes
reportable once it begins to engage in business.
Note that inactive companies include companies
that have been set-up as name-saving
organizations or have been formed or incorporated
but do not yet conduct any business activity. Any
company that has become inactive as of the end of
the reporting period does not need to be reported
on the FR Y-7 organization chart;
(10) Special Purpose Vehicles (SPV): An interest in
any company formed for specific leasing
transactions, such as a special purpose vehicle
engaged in a single leasing transaction; 4 and

(11) Companies to be Divested: An interest in any
company which must be divested pursuant to
sections 4(a)(2) or 4(n)(7) of the Bank Holding
Company Act (BHC Act) or pursuant to a
commitment made to the Board or the Federal
Reserve Bank (see also 12 CFR 225.85). NOTE:
The Reporter should report direct and indirect
interests in companies that are to be conformed,
beginning with the first report submitted once the
Reporter has become subject to the BHC Act.
In addition, list separately as a supplement to the
organization chart the entities reported in response to
Report Item 2(b).
Report Item 2(b) Foreign companies held pursuant
to section 2(h)(2) of the BHC Act and section
211.23(f)(5) of Regulation K, or section 4(c)(9) of the
BHC Act and section 211.23(f)(5) of Regulation K
(1) For each foreign company (whether or not a
subsidiary):
a. provide its full legal name and location
(city/country);
b. indicate the percent of any class of voting
shares of the company that is held directly or
indirectly by the FBO; and
c. indicate the percent of the company's
worldwide consolidated assets that are located
in and gross revenues that are derived from the
United States.
(2) For each foreign company that is a subsidiary,
indicate its U.S. activities (conducted through a
U.S. office or a U.S. company, whether or not a
subsidiary of the foreign company), and confirm
that these activities are the same as or are related
to those conducted abroad as measured by North
American
Industry
Classification
System
(NAICS) codes.
Note: Reporters are reminded that, pursuant to section
211.23(f)(5)(ii) of Regulation K (12 CFR
211.23(f)(5)(ii)), foreign companies may not directly
underwrite, sell, or distribute, nor own or control more
than 10 percent of the voting shares of a company that

4
Note that an interest in a Variable Interest Entity (as defined in
Financial Accounting Standards Board Interpretation No. 46R) typically
will not be reportable on either the FR Y-7 or the FR Y-10 so long as the
Reporter does not control the entity.

Instructions for Preparation of Reporting Form FR Y-7
Report Item Instructions December 2006

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Report Item Instructions
underwrites, sells, or distributes securities in the United
States, except to the extent permitted bank holding
companies. 5

Report Item 3: Shares and Shareholders
Report Item 3(a) Number and Types of Shares
List the number and types of all the shares (or their
equivalent) that the FBO has authorized, issued, or holds
for its own account. Describe the voting rights of each
type of shares and any agreements that limit the voting of
such shares. When the FBO has bearer securities
outstanding, describe the regulations requiring registration of the ownership of the bearer securities with the
FBO or appropriate regulatory agency.
Report Item 3(b) Nonbearer Securities 6
(circle one)
Does the FBO have nonbearer
securities?

Yes No

If the response is "yes," list each shareholder (or the
equivalent) of record that directly or indirectly owns,
controls, or holds with power to vote 5 percent or more
of any class of nonbearer securities of the FBO (See
Regulation Y, section 225.2(q)). Also list the beneficial
owner, to the extent ascertainable, when the beneficial
ownership is 5 percent or more of nonbearer shares.
Provide the following information for each:
1.

Name and address of principal residence for
individuals, or of head office for companies;

2.

Country of citizenship or of organization; and

3.

Number and percentage of each class of nonbearer
securities (or their equivalent) owned, controlled,
or held with power to vote.

5
Under a 1971 Board interpretation (12 CFR 225.124(d)), a foreign
bank holding company may underwrite or deal in shares of stock
(including shares of United States issuers) to be distributed outside the
United States, provided that shares so acquired are disposed of within a
reasonable time. This applies only to activity that takes place outside of
the United States and that does not involve a U.S. office. See F.R.R.S.
3-693 (addressing restrictions on underwriting by foreign banks of
securities to be distributed in the United States). Shares of companies
held pursuant to the interpretation on the reporting date need not be
reported in response to report item 2(b), provided that the holding of
the shares is in all respects consistent with the interpretation.

6

Report Item 3(c) Bearer Securities6
(circle one)
Does the FBO have bearer securities?

Yes No

If the response is "yes," list each known shareholder
that directly or indirectly owns, controls, or holds with
power to vote 5 percent or more of any class of bearer
securities (see Regulation Y, section 225.2(q)) of the
FBO. Provide the following information for each:
1.

Name and address of principal residence for
individuals, or of head office for companies;

2.

Country of citizenship or of organization; and

3.

Number and percentage of each class of bearer
securities (or their equivalent) owned, controlled,
or held with power to vote.

Report Item 4: Eligibility as a Qualified
Foreign Banking Organization (QFBO)
Report Item 4(a) Requirements for Eligibility as a
QFBO
To qualify for exemption from the nonbanking prohibitions of the BHC Act, a FBO must be "principally"
engaged in the banking business outside the United
States." Section 211.23(a) of Regulation K (12 CFR
211.23(a)) sets forth requirements to qualify for the
exemption. Certain FBOs that do not meet the criteria set
forth below in 4(g) will be eligible for limited
exemptions as described in section 211.23(c) of
Regulation K (12 CFR 211.23(c)) if they meet the
requirements set forth in that section. Such
organizations should contact the appropriate Federal
Reserve Bank for guidance.
Report Item 4(b) Financial Data
The top-tier FBO must provide financial data on the size of
its: (1) worldwide nonbanking business activities; (2)
non-U.S. banking activities; and (3) U.S. banking
activities. The top-tier FBO must measure the size of its
business activities by any two of the three financial
items: total assets, revenues, or net income, as provided in
4(c) below. Refer to the Notes to Report Item 4 on
page RI-7.

See Glossary.

Instructions for Preparation of Reporting Form FR Y-7
Report Item Instructions December 2006

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Report Item Instructions
Report Item 4(c) Consolidated or Combined Basis for
Determining Total Assets, Revenues, and Net
Income

Report Item 4(f) Banking Business Activities
Respond to any two of the following three criteria:
Amounts in
local
currency or
U.S. Dollars
(circle one)

For purposes of determining total assets, revenues, and net
income, each FBO:
1.

May use either a consolidated or a combined
basis;

2.

Must include the total assets, revenues, and net
income of all companies in which it owns 50 percent
or more of the voting shares; and
May include the total assets, revenues, and net
income of companies in which it owns 25 percent or
more of the voting shares if all such companies
within the FBO are included .

3.

1. Assets:
a. total non-U.S. banking ............
b. total U.S. banking ……………
2. Revenues derived from:
a. total non-U.S. banking ............
b. total U.S. banking ...................
3. Net Income derived from:
a. total non-U.S. banking ............
b. total U.S. banking ...................

Report Item 4(d) Worldwide Business Activities and
Banking Business Activities

Report Item 4(g) Criteria for Qualifying

The top-tier FBO must complete both 4(e) regarding
worldwide business activities and 4(f) regarding banking
business activities.

A FBO will qualify for the exemption from the
nonbanking prohibitions of the BHC Act only if two of
the three requirements in both of the following
categories are met:

Report Item 4(e) Worldwide Business Activities
Worldwide Business
Respond to any two of the following three criteria:
Amounts in
local
currency or
U.S. Dollars
(circle one)
1. Assets:
a. total worldwide nonbanking ....
b. total non-U.S. banking ………
Revenues derived from:
a. total worldwide nonbanking ....
b. total non-U.S. banking …..
Net Income derived from:
a. total worldwide nonbanking ....
b. total non-U.S. banking ...........

Instructions for Preparation of Reporting Form FR Y-7
Report Item Instructions December 2006

1.

Banking assets held outside the United States
exceed total worldwide nonbanking assets; or

2.

Revenues derived from the business of banking
outside the United States exceed total revenues derived
from its worldwide nonbanking business; or

3.

Net income derived from the business of
banking outside the United States exceeds total net
income derived from its worldwide nonbanking
business; and

Banking Business
1.

Banking assets held outside the United States
exceed banking assets held in the United States;
or

2.

Revenues derived from the business of banking
outside the United States exceed revenues derived
from the business of banking in the United States;
or

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Report Item Instructions
3.

Net income derived from the business of
banking outside the United States exceeds net income
derived from the business of banking in the United
States.

Report Item 4(j) Worldwide Business Activities
Respond to any two of the following three criteria:
Amounts in
local
currency or
U.S. Dollars
(circle one)

Report Item 4(h) Eligibility for Limited Exemptions
Certain FBOs that do not meet the criteria set forth above
in (g) will be eligible for limited exemptions as described
in section 211.23(c) of Regulation K (12 CFR 211.23(c))
if they meet both of the following requirements:
1)

Qualification of Foreign Bank(s)

Each foreign bank within the FBO that maintains a
branch or an agency, or controls a commercial lending
company, Edge or agreement corporation, or bank in the
United States must meet the criteria set forth above in
4(g) determined in accordance with 4(b) and 4(c) above,
and the Notes to Reports Item 4 on page RI-7.

1. Assets:
b. total worldwide nonbanking ....
b. total non-U.S. banking……….
Revenues derived from:
b. total worldwide nonbanking ....
b. total non-U.S. banking …
Net Income derived from:
c. total worldwide nonbanking ....
d. total non-U.S. banking ............

Report Item 4(k) Banking Business Activities
2)

Qualification of Top-tier Foreign Banking
Organization

The top-tier FBO, i.e., the ultimate parent, must meet the
criteria set forth above in 4(g) determined in accordance
with 4(b), 4(c), and the Notes to Report Item 4 on page
RI-7, provided, however, that solely for purposes of
meeting the “Worldwide Business” requirement in 4(g),
the top-tier FBO may count as non-U.S. banking all
activities listed in section 211.10 of Regulation K (12
CFR 211.10)) conducted by it and its direct and indirect
subsidiaries; that is, the limitation set forth in the second
sentence of Note 2 on page RI-7 shall not apply.
Report Item 4(i) Limited Exemptions: Worldwide
Business Activities and Banking Business Activities

Respond to any two of the following three criteria:
Amounts in
local
currency or
U.S. Dollars
(circle one)
1. Assets:
a. total non-U.S. banking ............
b. total U.S. banking ……………
4. Revenues derived from:
a. total non-U.S. banking ............
b. total U.S. banking ...................
5. Net Income derived from:
a. total non-U.S. banking ............
b. total U.S. banking ...................

Each foreign bank must complete both 4(j) regarding
worldwide business activities and 4(k) regarding banking
business activities. In addition, the top-tier FBO must
complete both 4(1) regarding worldwide business
activities and 4(m) regarding banking business activities.

Instructions for Preparation of Reporting Form FR Y-7
Report Item Instructions December 2006

RI-6

Report Item Instructions
Report Item 4(1) Worldwide Business Activities

Report Item 4(m) Banking Business Activities

Respond to any two of the following three criteria:

Respond to any two of the following three criteria:

Amounts in
local
currency or
U.S. Dollars
(circle one)
1. Assets:
c. total worldwide nonbanking ....
b. total non-U.S. banking ………
Revenues derived from:
c. total worldwide nonbanking ....
b. total non-U.S. banking …
Net Income derived from:
e. total worldwide nonbanking ....
f. total non-U.S. banking ...........

Amounts in
local
currency or
U.S. Dollars
(circle one)
1. Assets:
a. total non-U.S. banking ............
b. total U.S. banking ……………
6. Revenues derived from:
a. total non-U.S. banking ............
b. total U.S. banking ...................
7. Net Income derived from:
a. total non-U.S. banking ............
b. total U.S. banking ...................
Report Item 4(n) Loss of Eligibility
A foreign banking organization that does not meet the
requirements for two consecutive years as reported
herein will lose its eligibility for exemption pursuant to
section 211.23(d) of Regulation K (12 CFR 211.23(d)).

Notes to Report Item 4
1. When the same two criteria i.e., assets, revenues, or net income, are
reported in 4(e) and 4(f), the amount reported in 4(e) for total non-U.S.
banking should equal the amount reported in 4(f) for total non-U.S.
banking for that criterion. Similarly, amounts reported for total nonU.S. banking items in 4(j) should equal those in 4(k). Note that the
amounts reported for all criteria in 4 (m) should be the same as those
reported in 4(f).

3. U.S. Banking: All of the assets, revenues, or net income of a U.S.
subsidiary bank (including its foreign branches and subsidiaries),
branch, agency, subsidiary commercial lending company, or other
company engaged in the business of banking in the United States will
be considered held or derived from the business of banking in the
United States. Managed non-U.S. branches are not considered held or
derived from the business of banking in the United States.

2. Non-U.S. Banking: The activities considered to be banking when
conducted outside of the United States are listed in section 211.10 of
Regulation K (12 CFR 211.10). Note, however, that the Board has
determined that for purposes of determining eligibility as a qualifying
foreign banking organization, such activities must be conducted
through a foreign bank or its direct or indirect subsidiaries in order to
be considered banking activities. See 12 CFR 211.23(b)(2).

4. None of the assets, revenues, or net income of a U.S. subsidiary bank
(including its foreign branches and subsidiaries), branch, agency,
subsidiary commercial lending company, or other company engaged in
the business of banking in the United States will be considered held or
derived from the business of banking outside the United States.

Instructions for Preparation of Reporting Form FR Y-7
Report Item Instructions December 2006

RI-7

Glossary
For the purposes of the FR Y-7, the following definitions
shall apply. Please refer to the FR Y-10 Glossary for
additional terms used in this report.
Authorized Official shall mean a person with power to
bind the foreign banking organization.
Bearer Security shall mean any security that is not
registered to a particular party on the books of the issuing
company, but may or may not be registered with the
appropriate regulatory agency and, therefore, all rights
associated with the security are assigned to the party that
is in possession of the security.
Combined financial statements present the results of
operations and the financial position of a group of
commonly controlled companies, a group of unconsolidated subsidiaries or other companies that are under
common management, and after giving effect to the
elimination of intercompany balances and transactions.

Instructions for Preparation of Reporting Form FR Y-7
Glossary December 2006

Consolidated financial statements present the results of
operations and the financial position of a parent company
and its subsidiaries as if the group were a single company
with one or more branches or divisions, and, after giving
effect to the elimination of intercompany balances and
transactions.
Director shall mean a member of either the managing or
supervisory board.
Nonbearer Security shall mean any security that is
registered to a particular party on the books of the issuing
company. The issuer of the nonbearer security is required
to maintain a record of ownership of the security.
Ultimate parent shall mean the parent of the foreign
banking organization that is not the subsidiary of any
other company.

GL-1