Quarterly Capital and Asset Report for Foreign Banking Organizations

INSTRUCTIONS FOR PREPARATION OF

The Capital and Asset Report
for Foreign Banking Organizations
FR Y-7Q

General Instructions
The Capital and Asset Report for Foreign Banking
Organizations (FR Y-7Q) requires financial information
from foreign banking organizations (FBOs).

Who must report
The FR Y-7Q must be filed by each top-tier FBO. The
report consists of two parts.
1) Part 1 - Capital and Asset Information for the Top-tier
FBO. see insert 1
• Reported annually by each top-tier FBO if it or any
FBO in its tiered structure has not effectively
elected to be a financial holding company (FHC).
• Reported quarterly by each top-tier FBO if it or any
FBO in its tiered structure has effectively elected to
be an FHC.
2) Part 2 - Capital and Asset Information for Lower-tier
FBOs Operating a Branch or an Agency, or owning an
Edge or Agreement Corporation, or a commercial
lending company subsidiary in the United States.
• Reported quarterly by each lower-tier FBO (where
applicable) operating a branch or an agency, or
owning an Edge or Agreement corporation, or a
commercial lending company subsidiary in the
United States, if it or any FBO in its tiered structure
has FHC status.
Generally, the top-tier reporter of the FR Y-7Q is the
same as the top-tier reporter for the annual FR Y-7 report.
With certain tiered FBOs, however, the initial determination of the top-tier reporter for FR Y-7Q reporting
purposes may require consultation with Federal Reserve
staff. This determination will be based primarily on
whether the top-tier reporter provides capital ratio information to its home country authorities. For example, a
top-tier entity that is an insurance company and does not
FR Y-7Q
General Instructions

March 2008

provide capital ratio information to home country authorities will likely not have to provide capital ratio information on the FR Y-7Q; in this case, the next-highest tier
that provides capital and asset information to home
country authorities would likely be deemed the top-tier
entity for capital and asset reporting on the FR Y-7Q. For
any items being translated from foreign currency denominations, the foreign currency translation rate should be
the rate effective on the as-of date of the report.
Parts 1 and 2 of the FR Y-7Q are not intended to collect
capital and asset information of U.S. operations of FBOs.
On a stand alone basis, capital and asset information on
U.S. operations is collected via other regulatory reports.
All financial data should be reported in U.S. dollars, as
indicated on the reporting form.

Examples of who must report
XYZ Ltd. is a top-tier FBO that operates an agency in the
United States. XYZ Ltd. has FHC status. It does not own
any other foreign banks that have U.S. operations. XYZ
Ltd. must respond to Part 1 of the FR Y-7Q on a quarterly
basis. It does not have to report on Part 2.
ABC AG is a top-tier FBO that operates a branch in the
United States. ABC AG does not have FHC status. It
must respond to Part 1 on an annual basis. It does not
have to report on Part 2.
LMN SA is a top-tier FBO that operates a branch in the
United States. It also owns directly a U.S. bank subsidiary. LMN SA has FHC status. It does not own any other
foreign banks with U.S. operations. LMN SA must
respond to Part 1 of the FR Y-7Q, on a quarterly basis. It
does not have to report on Part 2.
ABC Ltd is a top-tier FBO that owns directly a U.S. bank
subsidiary in the United States. It does not operate a
branch or an agency or own an Edge or Agreement
corporation or a commercial lending company subsidiary
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General Instructions
Page 1

in the United States. ABC Ltd has FHC status. It does not
own any other foreign banks with U.S. operations. ABC
Ltd must respond to Part 1 of the FR Y-7Q on a quarterly
basis. It does not have to report on Part 2.

Cover page

LMN AG is a top-tier FBO that operates a branch in the
United States. LMN AG also owns two foreign bank
subsidiaries, AAA Bank and BBB Bank, each of which
operates a branch in the United States. LMN AG and its
two lower-tier FBOs, AAA Bank and BBB Bank have
FHC status. LMN AG must respond to Part 1 of the
FR Y-7Q on a quarterly basis. Both AAA Bank and BBB
Bank must each respond to Part 2 of the FR Y-7Q on a
quarterly basis.

Legal Name of Foreign Banking
Organization

XYZ AG is a top-tier FBO that operates an agency in the
United States. XYZ AG also owns a foreign bank
subsidiary, DDD Bank, that in turn owns directly a U.S.
bank subsidiary. DDD Bank does not operate a branch or
an agency nor does it own an Edge or Agreement
corporation or a commercial lending company subsidiary
in the United States. XYZ AG and its lower-tier FBO,
DDD Bank have FHC status. XYZ AG must respond to
Part 1 of the FR Y-7Q on a quarterly basis. DDD Bank
does not have to respond to Part 2 of the FR Y-7Q.
ABC SA is a top-tier FBO that operates an agency in the
United States. ABC SA also owns a foreign bank subsidiary, EEE Bank, which operates a branch in the United
States. Neither ABC SA nor EEE Bank has FHC status.
ABC SA must respond to Part 1 on an annual basis. EEE
Bank does not have to report on Part 2.
QRS Ltd is a top-tier FBO that owns indirectly a U.S.
bank subsidiary. QRS Ltd also owns a foreign bank
subsidiary, CCC Bank, which operates a branch in the
United States. QRS Ltd and its lower-tier FBO, CCC
Bank have FHC status. QRS Ltd must respond to Part 1
of the FR Y-7Q on a quarterly basis. CCC Bank must
respond to Part 2 of the FR Y-7Q on a quarterly basis.
LMN Ltd is a top-tier FBO that operates a branch in the
United States. LMN Ltd also owns two foreign bank
subsidiaries, YYY Bank and ZZZ Bank. YYY Bank
operates an agency in the United States. ZZZ Bank owns
a U.S. bank holding company but does not operate a U.S.
branch or agency or own an Edge or Agreement corporation or a commercial lending company subsidiary in the
United States. LMN Ltd and its two lower-tier FBOs,
YYY Bank and ZZZ Bank, have been deemed FHCs.
LMN Ltd must respond to Part 1 of the FR Y-7Q on a
quarterly basis. YYY Bank must respond to Part 2 on a
GEN-2

quarterly basis. ZZZ Bank does not have to respond to
Part 2.
1
The cover page of the report must include the legal name
of the FBO filing the FR Y-7Q and the mailing address.
The name, telephone number and e-mail address of a
contact at the FBO to whom questions about the report(s)
may be directed must be indicated.

The legal name must be the same name that is specified
on the Report of Changes in Organizational Structure
(FR Y-10).

Submission of Reports
Submission Date
The report date for FBOs that must report annually is
December 31. The preferred reporting period is for the
12-month calendar year ending December 31. However,
FBOs are permitted to report based on their most recent
12-month fiscal year, if their fiscal year differs from the
12-month calendar year ending December 31. Report the
‘‘as-of’’ date in Part 1 item 6. For example, if a reporter’s
fiscal year ends on October 31, 2002, then Line Item 6 of
the FR Y-7Q filed for December 31, 2002 would read 10
31 2002.
The reporting dates for FBOs that must report quarterly
are March 31, June 30, September 30, and December 31.
The preferred reporting periods correspond with the
12-month calendar year ending December 31 (i.e., for the
three months ending March 31, six months ending
June 30, nine months ending September 30, and twelve
months ending December 31). However, an FBO is
permitted to report at different periods if its fiscal year
differs from the 12-month calender year ending December 31. Report the ‘‘as-of’’ dates in Part 1, item 6, and
Part 2, item 6 (if applicable). However, these reports must
be submitted on the quarter end dates, similar to the
manner described above for year-end dates.

Where to Submit Reports
This report must be received by the appropriate Federal
Reserve Bank no more than 90 calendar days after the
General Instructions

FR Y-7Q
March 2008

7

General Instructions

PAGE 1
report date. The earlier submission would aid the Federal
Reserve in reviewing and processing the report and is
encouraged. Cases in which home country practices do
not allow for reporting within 90 days might justify an
extension, but only after consultation with Federal Reserve
staff. If this deadline cannot be met, the FBO 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. The reports are due by the end of the reporting
day on the submission date (i.e., 5:00 P.M. at each of the
Federal Reserve Banks). The filing of this report will be
considered timely, regardless of when the reports are
received by the appropriate Federal Reserve Bank, if
these reports are mailed and postmarked no later than the
third calendar day preceding the submission deadline. In
addition, the hand delivery of the completed original
reports on or before the submission deadline to the
location to which the reports would otherwise be mailed
is an acceptable alternative to mailing such reports. If the
submission deadline falls on a weekend 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.

Confidentiality
The completed version of this report generally is available to the public upon request on an individual basis 120
days after the quarterly or annual as-of-dates. However, a
reporting FBO may request confidential treatment if it is
of the opinion that disclosure of specific commercial or
financial information in the report would likely result in
substantial harm to its competitive position, or that
disclosure of the submitted information would result in
unwarranted invasion of personal privacy. A request for
confidential treatment beyond the initial 120 days must
be submitted in writing concurrently with the submission
of the report. The request must discuss in writing the
justification for which confidentiality is requested and
must demonstrate the specific nature of the harm that
would result from public release of the information.
FR Y-7Q
General Instructions

March 2011

Merely stating that competitive harm would result or that
information is personal is not sufficient.
WHEN
CONFIDENTIAL
TREATMENT
IS
REQUESTED, THE FR Y-7Q COVER SHEET
SHOULD BE LABELED ‘‘CONFIDENTIAL.’’ THIS
INFORMATION SHOULD BE SPECIFICALLY IDENTIFIED AS BEING CONFIDENTIAL.
The Federal Reserve may subsequently release information for which confidential treatment is requested if the
Board of Governors determines that the disclosure of
such information is in the public interest. If the Federal
Reserve deems it necessary to release confidential data,
the respondent will be notified before it is released.

Signatures

1

The Capital and Asset Report for Foreign Banking
Organizations must be signed as indicated on the cover
page by a duly authorized officer of the FBO. By signing
the cover page of this report, the authorized officer
acknowledges that any knowing and willful misrepresentation or omission of a material fact on this report
constitutes fraud in the inducement and may subject the
officer to legal sanctions provided by 18 USC 1001 and
1007.

Amended Reports
The Federal Reserve may require the filing of an amended
Capital and Asset Report for Foreign Banking Organizations if reports as previously submitted contain significant errors. In addition, an FBO should file an amended
report when internal or external auditors make audit
adjustments that result in a restatement of financial
statements affecting reports previously submitted to the
Federal Reserve. In the event that the required data is
not available, respondents should contact the appropriate
Federal Reserve Bank for information on submitting
revisions.

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 Submission Date section of
these general instructions. Additional information on the
monitoring procedures are available from the Federal
Reserve Banks.
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General Instructions

PART 1—Capital and Asset Information
for the Top-tier Consolidated Foreign
Banking Organization

answer to Part 1, Line item 1 is ‘‘yes’’. If the answer to
Part 1, Line item 1 is ‘‘no’’, then report by using the
closest possible approximation.

The capital and asset information provided in Part 1
should be reported by the top-tier FBO. The information
provided on Part 1 should be submitted for the consolidated organization. See the ‘‘Who must report’’ section
to determine the frequency of reporting for Part 1. The
Federal Reserve may require a FR Y-7Q reporter to
submit supporting calculations and definitions of its
components of capital if deemed necessary.

Line Item 5 Total assets at the end of the
reporting period.
consolidated

Line Item 1 Is the foreign banking organization
required by its home country supervisor to calculate
its capital ratios using a risk-adjusted framework
consistent with the Basel Capital Accord?
Enter a ‘‘1’’ for ‘‘yes’’ if home country supervisor of the
FBO has adopted and utilizes risk-based standards consistent with the Basel Capital Accord. Enter a ‘‘0’’ for
‘‘no’’ if the FBO is not required to apply standards
consistent with the Basel Capital Accord. If ‘‘yes’’,
provide capital and asset information using the procedures consistent with the risk-based framework required
by the home country supervisor. If ‘‘no’’, provide the
organization’s best approximation of the capital and asset
information.
Line Item 2

Tier 1 capital.

Report the amount of Tier 1 capital, on a consolidated
basis, as reported by the institution to its home country
supervisor under the Basel Capital Accord if the answer
to Part 1, Line item 1 is ‘‘yes’’. If the answer to Part 1,
Line item 1 is ‘‘no’’, then report by using the closest
possible approximation.
Line Item 3

Total risk-based capital.

Report the amount of total risk-based capital, on a
consolidated basis, as reported by the institution to its
home country supervisor under the Basel Capital Accord
if the answer to Part 1, Line item 1 is ‘‘yes’’. If the
answer to Part 1, Line item 1 is ‘‘no’’, then report by
using the closest possible approximation.
Line Item 4

Risk-weighted assets.

Report the amount of risk-weighted assets, on a consolidated basis, as reported by the institution to its home
country supervisor under the Basel Capital Accord if the
GEN-4

Report the total assets, on a consolidated basis, at the end
of the reporting period.
Line Item 6 (see Insert 2)
Line Item 6 Enter the as-of date for the financial
information provided above.
7
Report in Line item 6 the as-of date for the financial
information reported in Line items 2–5. Report the
month, day, and year in the boxes provided, using leading
zeroes, if necessary. For example, if the as-of date is
December 31, 2002, the entry would be 12 31 2002. If a
reporter’s fiscal year does not follow the reporting pattern
as defined above under ‘‘Submission date’’, then the as-of
date for the most recent data available should be reported
in Line item 6. For example, if a reporter’s fiscal year
ends on October 31, then Line item 6 of the FR
Y-7Q filed for December 31, 2002 would read 10 31
2002. For quarterly reporters a similar process would be
followed, e.g., for a report filed on March 31, 2003 the
reporter would provide data as-of January 31, 2003, Line
Item 6 would be 01 31 2003.

PART 2—Capital and Asset Information
for Lower-tier FBOs Operating a Branch,
or an Agency, or Owning an Edge or
Agreement Corporation, or a Commercial
Lending Company Subsidiary in the
United States
Part 2 is to be completed only if the top-tier or lower-tier
FBO has FHC status. Part 2 pertains only to the capital
and asset information of lower-tier FBOs (information on
top-tier reporters is reported on Part 1, not on Part 2).
This information is to be collected only if the lower-tier
FBO operates a branch or an agency, or owns an Edge or
Agreement corporation, or a commercial lending company subsidiary in the United States. A separate version
of Part 2 should be submitted for each of the top-tier
reporter’s lower-tier FBOs that meet these reporting
requirements (e.g., if the top-tier reporter has two
lower-tier FBOs meeting the reporting requirements for
Part 2, a separate schedule of the Part 2 information for
each of the two lower-tier reporters must be provided).
General Instructions

FR Y-7Q
March 2011

General Instructions

The capital and asset information provided in Part 2
must be reported on a quarterly basis by any lower-tier
FBO meeting the reporting requirements defined above.
Items should be reported on a consolidated basis for each
lower-tier reporter. Part 2 does not pertain to capital and
asset information of U.S. operations. The Federal Reserve
may require a lower-tier FBO to submit supporting
calculations and definitions of its components of capital
if deemed necessary.
Legal title of lower-tier FBO that operates a branch
or an agency, or owns an Edge or Agreement
corporation or a commercial lending company
subsidiary in the United States
Enter the full name of the lower-tier FBO for which
capital and asset information is being provided.
Country of lower-tier FBO that operates a branch
or an agency, or owns an Edge or Agreement
corporation or a commercial lending company
subsidiary in the United States
Enter the country in which this lower-tier FBO is incorporated or has its principal location.
Line Item 1 Is the reporting lower-tier FBO
required by its home country supervisor to calculate
its capital ratios using a risk-adjusted framework
consistent with the Basel Capital Accord?
Enter a ‘‘1’’ for ‘‘yes’’ if the home country supervisor of
the lower-tier FBO has adopted and utilizes risk-based
standards consistent with the Basel Capital Accord. Enter
a ‘‘0’’ for ‘‘no’’ if the lower-tier FBO is not required to
apply standards consistent with the Basel Capital Accord.
If ‘‘yes’’, provide capital and asset information using the
procedures consistent with the risk-based framework
required by the home country supervisor. If ‘‘no’’, provide the lower-tier FBO’s best approximation of the
capital and asset information.
Line Item 2

Tier 1 capital.

Report the amount of Tier 1 capital, on a consolidated
basis, as reported by the lower-tier FBO to its home
country supervisor under the Basel Capital Accord if

FR Y-7Q
General Instructions

March 2011

the answer to Part 2, Line item 1 is ‘‘yes’’. If the answer
to Part 2, Line item 1 is ‘‘no’’, then report by using the
closest possible approximation.
Line Item 3

Total risk-based capital.

Report the amount of total risk-based capital, on a
consolidated basis, as reported by the lower-tier FBO to
its home country supervisor under the Basel Capital
Accord if the answer to Part 2, Line item 1 is ‘‘yes’’. If the
answer to Part 2, Line item 1 is ‘‘no’’, then report by
using the closest possible approximation.
Line Item 4

Risk-weighted assets.

Report the amount of risk-weighted assets, on a consolidated basis, as reported by the lower-tier FBO to its home
country supervisor under the Basel Capital Accord if the
answer to Part 2, Line item 1 is ‘‘yes’’. If the answer to
Part 2, Line item 1 is ‘‘no’’, then report by using the
closest possible approximation.
Line Item 5 Total assets at the end of the
reporting period.
consolidated
Report the total assets of the lower-tier FBO, on a
consolidated basis, at the end of the reporting period.
Line Item 6 Enter the as-of date for the financial
information provided above.
Report in Line item 6 the as-of date for the financial
information reported in Line items 2–5. Report the
month, day, and year in the boxes provided, using leading
zeroes, if necessary. For example, if the as-of date is
December 31, 2002, the entry would be 12 31 2002. If a
lower-tier FBO’s fiscal year does not follow the reporting pattern as defined above under ‘‘Submission date’’,
then the as-of date for the most recent data available
should be reported in Line item 6. For example, if a
lower-tier FBO’s fiscal year ends on October 31, then
Line item 6 of the FR Y-7Q filed for December 31, 2002
would be 10 31 2002. For quarterly reporters a similar
process would be followed, e.g., for a report filed on
March 31, 2003 the reporter would provide data as-of
January 31, 2003, Line Item 6 would be 01 31 2003.

GEN-5

20110630

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