Quarterly Report of Assets and Liabilities of Large Foreign Office of U. S. Banks

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FR 2502q
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REPORTING INSTRUCTIONS
PART I—GENERAL INSTRUCTIONS

A. Introduction
This report obtains data on the geographical distribution of the
assets and liabilities of major foreign branches and subsidiaries of
U.S. commercial banks and of Edge and agreement corporations
(“banks”). All assets and liabilities are to be reported gross, except
where otherwise noted in these instructions, in U.S. dollar equivalents as shown on the books of the reporting branch or subsidiary,
not on the books of the “parent bank.” The reporting standards
for this report should be the same as those for the Consolidated
Reports of Condition and Income (FFIEC 031) unless explicitly
stated otherwise in these instructions.

B. Who Files Reports
U.S. bank holding companies, including financial holding companies,
commercial banks and banking Edge and agreement corporations
file quarterly reports for certain branches and subsidiaries located
outside the United States, excluding branches on U.S. military facilities wherever located.

C. For Which Offices Reports Are Filed
Reports are to be filed for all branches and subsidiaries that are
located in the United Kingdom or the Caribbean (listed below), that
are not located in a U.S. military facility, and that meet the following
criteria:
2 billion
• branches filing the Foreign Branch Report of Condition–
FFIEC 030 whose total assets payable in all currencies amount
to $500 million or more on a report date,
• subsidiaries filing the quarterly Financial Statements of Foreign
Subsidiaries of U.S. Banking Organizations (FR 2314) that have
a banking charter and engage in banking business, and that
report $2 billion or more in total assets in Schedule BS, item
10 and $10 million or more in total deposits in Schedule BS-M,
item 6. Bonaire,
Curacao,
An office is located in the Caribbean if it is located in any of the
following: Anguilla, Antigua and Barbuda, Aruba, Bahamas, Barbados, Bermuda, British Virgin Islands, Cayman Islands, Cuba,
Dominica, Dominican Republic, Grenada, Guadeloupe (including
Marie-Galante, La Desirade, Iles des Saintes, St. Barthelemy, and
northern St. Martin), Haiti, Jamaica, Martinique, Montserrat, Netherlands Antilles (including Bonaire, Curacao, Saba, St. Eustatius,
and southern St. Martin), St. Kitts and Nevis, St. Lucia, St. Vincent
and the Grenadines, Trinidad and Tobago, and the Turks and Caicos
Islands.
St. Maarten,
Once a branch or subsidiary has met the criteria stated above,
reports should continue to be filed for that branch or subsidiary for
each remaining quarter in the calendar year regardless of whether
the amount falls below the reporting threshold on subsequent

report dates during the calendar year. A branch or subsidiary that
is above the reporting threshold as of the end of December should
report for the following calendar year.
The total assets test defined above applies to the total of the
foreign branch’s or subsidiary’s international and local assets,
regardless of the currency in which the assets are payable. The
test does not apply separately to offshore banking units, foreign
currency units, or any other administrative division within a branch
or subsidiary. Similarly, the assets and liabilities reported should
be those of the entire branch or subsidiary and those not booked
only in an administrative or regulatory subdivision of the branch or
subsidiary.
As an alternative to filing separate reports for several individual branches in the same country or dependency, a bank
may choose to file a consolidated report for all of its branches
in a single country (or dependency) as long as the report is filed
on schedule with the Federal Reserve Bank. If the report form
breaks a country into several geographical areas (as, e.g., the
United Kingdom is broken into England, Guernsey, Isle of Man,
Jersey, Northern Ireland, Scotland, and Wales), then consolidated reporting should be limited to all branches (or all subsidiaries) located in a single defined area. Under this alternative all
branches in that country must be included in the consolidated
report, regardless of their individual sizes; and the number of
branches in the country must be indicated in the appropriate place
on the report. Changes in this reporting procedure—for example,
changing from individual reports to a single consolidated report for
all branches in the same country (and vice versa)—may be made
only in the first quarter of a calendar year and must be approved by
the Federal Reserve Bank with whom the reports are filed. When
a bank has had a single branch in a country and that branch has
been preparing a FR 2502q report, a de novo second branch
of the parent bank may, without prior approval, file on a consolidated
basis with the first branch provided that consolidated reports are
begun as of the first reporting date after the second branch
opens.
Similarly, a reporter may choose to file a consolidated report for
all of its subsidiaries in a single country, under the same terms
stipulated above for branches. Branches and subsidiaries, however,
may not be consolidated on one report, regardless of where they
are located.
In reporting, a branch or subsidiary may elect to omit claims on and
liabilities to residents of an individual country (or dependency)
if both total claims on and total liabilities to addressees in that
country areless than $1 million (equivalent). These and other
assets and liabilities that are not reported under a specific country
because the country was not listed on the reporting form should
be summed for each region and entered in the row for other countries in each region (e.g., "Other Europe"). Assets and liabilities
for which the customer was not known to the bank (as would
be the case with negotiable certificates of deposit)—should be
included in “UNALLOCATED” (country code 88862).

Reports need not be filed for offices that are not
located in the United Kingdom or the Caribbean.

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FR 2502q
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Amounts reported should be rounded to the nearest million
dollars.

this report but should note differences in this regard by indicating
such on the report form.

D. Report Date

The liability for the permanent investment of the parent bank in the
branch should be shown as a liability to the United States.

Reports are to be prepared as of the close of business on the
last business day of the calendar quarter in the country (or dependency) in which the branch or subsidiary is located.

Assets and liabilities in accounts with customers in Puerto Rico
and U.S. dependencies should be reported on the line provided for
these accounts.

For customers residing in a country that is not listed on the form,
subtotals of assets and liabilities should be calculated for each reE. When and Where Reports Are Filed
gion and should be listed in the lines provided on the form for other
U.S.Claims
bank holding
companies,
including
financial
holding
companies,
countries
in each
region
(e.g.,and
"Other Europe").
and liabilities resulting from securities purchased
and sold
under
resale
commercial banks, and banking Edge and agreements corporations
repurchase agreements can be netted if they meet the requirements outlined in
should file the reports required for its branches and subsidiaries with
H. International
and Regional Organizations
FASB Reserve
Interpretation
No.District
41, “Offsetting
of Amounts
to Certain
the Federal
Bank of the
in which the head
office is Related
Repurchase
and Reverse
Agreements"
(FIN
41). and liabilities in accounts of international and regional
located,
on the schedule
stipulatedRepurchase
by the Reserve
Bank.
Assets
organizations should be reported on the line provided for these
accounts and not opposite the country in which the headquarters or
F. Method of Submitting Data to Federal Reserve Bank
a branch office of such organization is located. However, assets and
liabilities in accounts of the Bank for International Settlements and
Repor ts may be submitted on the printed repor ting form
the European Central Bank should be reported on the lines provided
FR 2502q. Alternatively, reports may be submitted in any other
on the form (country codes 13307 and 13501, respectively) under
format that is mutually satisfactory both to the reporting bank
the heading “EUROPE.” Any transactions with a single country's
and to the Federal Reserve Bank. All reports should be clear and
central bank should continue to be reported opposite the country
legible. Handwritten reports must be submitted in ink.
of that central bank.
G. Determination of Country or Dependency of Customer
I. Unallocated Accounts
Assets and liabilities should be reported according to the country or
dependency of the principal address of the customer (i.e., depositor,
creditor, borrower, obligor, etc.). If the principal address is unclear,
the branch or subsidiary may use as the principal address that address to which statements of the customer’s account (or receipted
notes) are sent. However, the address of a bank “shell” branch is
the country (or dependency) in which the branch is authorized to
operate, even though statements may be sent to the head office in
a different country. Care should be taken to ensure that accounts
of foreign branches or subsidiaries of U.S. corporations are not
reported as U.S. accounts, and that accounts of U.S. branches or
subsidiaries of foreign corporations are not reported as non-U.S.
accounts, (i.e., that domicile and not ownership determine the
identification of the country of customer). U.S. accounts are those
of customers domiciled in the fifty states, the District of Columbia,
and on U.S. military facilities wherever located. All other persons
or corporations are non-U.S. addressees, which includes foreign
governments and any of its subdivisions or agencies, including all
foreign official non-banking institutions, even if located in the U.S.
(e.g. an embassy of a foreign country).
Securities and other assets, as well as claims and liabilities resulting from the fair value of derivatives contracts, should be reported
according to the principal address of the obligor, not the address
of a guarantor or parent company (i.e., do not report positions on
an ultimate risk basis).
However, if the branch or subsidiary files regular reports with the
authorities of its country (or dependency) of domicile which use a
different basis than the above for determining the country of customer, the branch or subsidiary may employ that basis in completing

The unallocated category is intended to capture items that cannot be
allocated to a particular country (or dependency). Include in “UNALLOCATED” assets and liabilities for which the customer (and, hence,
the country of customer) is not known to the respondent. Negotiable
certificates of deposit and acceptances (both liabilities) should be
included in “UNALLOCATED” because it is likely that the customer
is not known to the respondent. On the other hand, customer’s
liability on acceptances (an asset) should be reported according
to the country of the principal address of the account party who
is the obligor. Unrealized gains or losses resulting from exchange
rate translations should be recorded as “UNALLOCATED” (country
code 88862).
J. Valuation
Assets and liabilities should be valued using U.S. GAAP. Assets or
liabilities payable in foreign currencies should be converted into U.S.
dollars at the exchange rate prevailing on the report date.
Claims and liabilities resulting from the fair value of derivatives
contracts items should be reported on a gross basis, except such
contracts with the same counterparty that meet the criteria for a
valid right of setoff contained in FASB Interpretation Number 39.
Foreign currency translations should be reported net.
K. Total Assets Must Equal Total Liabilities
Components of column totals and subtotals must sum to their
respective total or subtotal. Moreover, total assets must equal total
liabilities (country code 99996).

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FR 2502q
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L. Negative Numbers
All amounts should be reported as positive balances. Items such
as 1) undivided profits or accumulated operation losses, and
2) unremitted foreign currency translation adjustments should be
reported as positive amounts due to or due from the parent.
PART II—SPECIFIC ITEM INSTRUCTIONS
Memoranda
Item 1. Amounts included in “UNITED STATES” above (country
code 01007) for claims on, and liabilities to, U.S. addressees
as follows: Do not include negotiable CDs; they are reported
in “UNALLOCATED” (country code 88862) in the body of the
report.
The term “United States” (U.S.) includes the fifty states, the
District of Columbia, and U.S. military facilities wherever located.
The term “U.S. addressee” includes any person or corporation
whose principal address (i.e., domicile), according to the records
of the reporting branch, is in the United States. (See Section G of
General Instructions.)
Item 1.a. Claims on, and liabilities to, U.S. parent bank (as
defined below). Include as assets all advances to the U.S. parent bank, balances due from the parent bank, and acceptances
created for the parent bank as well as all loans, securities, or
other assets purchased from the U.S. parent bank under a specific
repurchase agreement. Exclude all assets acquired from the parent
bank without repurchase agreements.
Include as liabilities advances from the U.S. parent bank or balances due to the parent bank, including the liability of the branch or
subsidiary to the parent bank resulting from acceptances confirmed,
endorsed, or created by the parent bank for the branch or subsidiary.
If this report is being filed for a branch or branches, also include
as a liability the permanent investment of the parent bank in the
branch(es). If this report is being filed for a subsidiary or subsidiaries, include subsidiary equity in this item.
Unremitted profits/losses are balances due to or due from the
parent bank and should be reported as assets (for net losses) or
liabilities (for net profits).
Parent bank. The term “parent bank” includes all U.S. offices and
branches of the “bank” of which the reporting branch or subsidiary
is a part. It includes the parent bank’s International Banking Facility.
In addition, it includes such bank’s Edge and agreement subsidiaries and other subsidiaries in the fifty states and the District of
Columbia that are consolidated with the parent bank for purposes
of reporting on the FFIEC 031. Branches at U.S. military facilities
wherever located are also to be included with the parent bank.
“Parent bank” excludes the bank holding company owning the bank
filing these reports and other U.S. subsidiaries, branches or agencies of that holding company, unless they are consolidated with

the bank when it files condition reports with banking authorities in
the United States. If the bank holding company is not consolidated,
it is reported in memorandum Item 1.c., “U.S. addressees other
than depository institutions.” Trust departments are to be excluded
from the parent bank and included in “U.S. addressees other than
depository institutions.”
Item 1.b. Claims on, and liabilities to, other depository institutions in the United States. Report claims on, and liabilities, other
than negotiable CDs, to other depository institutions in the United
States.
Other depository institutions in the United States. The term
“other depository institutions in the United States” (i.e., other than
the parent bank) includes commercial banks, unaffiliated Edge and
agreement corporations, branches and agencies of foreign banks,
building or savings and loan associations, mutual or stock savings
banks, cooperative banks, credit unions, and homestead associations, located in the fifty states of the United States, the District
of Columbia, and on U.S. military facilities wherever located. This
term also includes International Banking Facilities of the abovementioned institutions. It excludes trust departments (included in
item 1.c. below), all banking offices in Puerto Rico and U.S. territories and possessions, and U.S. government and international
financial institutions.
Item 1.c. Claims on, and liabilities to, U.S. addressees other
than depository institutions. Report claims on, and liabilities, other
than negotiable CDs, to U.S. addressees other than the parent bank
and other depository institutions. Include balances of trust departments. Include balances of the parent bank’s holding company, if not
consolidated and reported in Item 1.a. above. Note: The amounts
reported for “UNITED STATES” (country code 01007) must equal
the sum of memorandum items 1.a., 1.b., and 1.c.
Item 2. Amounts included in “TOTAL, all areas” above (country
code 99996) that represent claims and liabilities from the fair
value of derivatives contracts, if any. Report the claims and liabilities reported anywhere on this form that are attributable to the
fair value of derivatives contracts, if any.
Item 3. Amounts included in “TOTAL, all areas” above (country code 99996) that represent claims on, and liabilities to,
other non-U.S. offices of the parent bank. Report claims on, and
liabilities to, other non-U.S. branches or subsidiaries of the parent bank that are located either within or outside the country of
domicile of the reporting branch or subsidiary. Include such claims
and liabilities whether or not the particular branches or subsidiaries against which the claims and liabilities exist are exempt from
reporting on the FR 2502q. Non-U.S. branches or subsidiaries are
those located outside the fifty states of the United States and the
District of Columbia, excluding those on U.S. military facilities, wherever located. Note: The amounts reported in memorandum item 3
must not exceed the amounts reported in “TOTAL, all areas,” (country
code 99996).