FRY11_FRY11S_FR2314_FR2314S_20180312_omb

Supporting Statement for the
Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding Companies
(FR Y-11 and FR Y-11S; OMB No. 7100-0244) and the
Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations
(FR 2314 and FR 2314S; OMB No. 7100-0073)
Summary
The Board of Governors of the Federal Reserve System (Board), under delegated
authority from the Office of Management and Budget (OMB), proposes to extend for three years,
with revision, the following mandatory reports:
(1) Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding Companies
(FR Y-11; OMB No. 7100-0244),
(2) Abbreviated Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding
Companies (FR Y-11S; OMB No. 7100-0244),
(3) Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations
(FR 2314; OMB No. 7100-0073), and
(4) Abbreviated Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations
(FR 2314S; OMB No. 7100-0073).
The FR Y-11 reporting forms collect financial information for individual nonfunctionally regulated U.S. nonbank subsidiaries of domestic holding companies (i.e., bank
holding companies, savings and loan holding companies, securities holding companies, and
intermediate holding companies). Holding companies file the FR Y-11 on a quarterly or annual
basis or the FR Y-11S on an annual basis, predominantly based on whether the organization
meets certain asset size thresholds. The FR Y-11 data are used with other holding company data
to assess the condition of holding companies that are heavily engaged in nonbanking activities
and to monitor the volume, nature, and condition of their nonbanking operations.
The FR 2314 reporting forms collect financial information for non-functionally regulated
direct or indirect foreign subsidiaries of U.S. state member banks (SMBs), Edge and agreement
corporations, and holding companies (i.e., bank holding companies, savings and loan holding
companies, securities holding companies, and intermediate holding companies). Parent
organizations (SMBs, Edge and agreement corporations, or holding companies) file the FR 2314
on a quarterly or annual basis, or the FR 2314S on an annual basis, predominantly based on
whether the organization meets certain asset size thresholds. The FR 2314 data are used to
identify current and potential problems at the foreign subsidiaries of U.S. parent companies, to
monitor the activities of U.S. banking organizations in specific countries, and to develop a better
understanding of activities within the industry, in general, and of individual institutions, in
particular.
The Board proposes to revise the instructions for Schedule IS and related line item
captions on the reporting forms to remove the term “extraordinary items” and replace it with the
term “discontinued operations” on the FR Y-11 and FR 2314. The modifications will be
effective for reports submitted on or after April 1, 2018, beginning with the reports reflecting the
March 31, 2018, report date. The current annual reporting burden for the FR Y-11 and FR 2314

reports is estimated to be 19,108 hours and 15,819 hours, respectively. The proposed revisions
would have a negligible impact and the estimated reporting burden is not expected to change.
Background and Justification
The FR Y-11 family of reports collects financial information for individual U.S. nonbank
subsidiaries of domestic holding companies, which is essential for monitoring the subsidiaries’
potential impact on the holding company or its subsidiary banks’ condition. Consolidated and
parent company only data do not reveal the extent of the problems that may exist within the
nonbank subsidiaries because the size and operations of bank subsidiaries can mask the
operations of nonbank subsidiaries in a consolidated report.
In addition to providing information used in the supervision of holding companies, the
FR Y-11 family of reports provides essential information to assist the Federal Reserve in the
formulation of regulations and supervisory policies. The data are also used by the Federal
Reserve to respond to requests from Congress and the public for information on holding
companies.
The FR 2314 family of reports is the only source of comprehensive and systematic data
on the assets, liabilities, and earnings of the foreign nonbank subsidiaries of U.S. banking
organizations and the data are used to monitor the growth, profitability, and activities of these
foreign companies. The data help the Federal Reserve identify present and potential problems of
these companies, monitor their activities in specific countries, and develop a better understanding
of activities within the industry and within specific institutions. This information, coupled with
information from the Foreign Branch Reports of Condition (FFIEC 030; OMB No. 7100-0071),
provides a picture of the breadth and scope of international banking operations for U.S. holding
companies both individually and in the aggregate.
Description of the Information Collection
FR Y-11 and FR Y-11S
Domestic holding companies file the FR Y-11 reports for their U.S. nonbank subsidiaries.
The FR Y-11 consists of an income statement and balance sheet, schedules that collect
information on changes in equity capital, the allowance for loan and lease losses, off-balancesheet data items, loans, and a memoranda section. A top-tier holding company must file the
FR Y-11 quarterly for each nonbank subsidiary that it owns and controls if the top-tier holding
company has total consolidated assets of $500 million or more as of June 30 of the preceding
year or files the FR Y-9C to meet supervisory needs and the subsidiary meets any one of the
following criteria: (1) total assets of $1 billion or more, (2) total off-balance-sheet activities of at
least $5 billion, (3) equity capital of at least 5 percent of the top-tier holding company’s
consolidated equity capital, or (4) operating revenue of at least 5 percent of the top-tier holding
company’s consolidated operating revenue. The FR Y-11 is filed annually, as of December 31,
by top-tier holding companies for each individual nonbank subsidiary that does not meet the
criteria for filing quarterly with total assets of at least $500 million, but less than $1 billion.

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The FR Y-11S is an abbreviated reporting form that collects four data items: net income,
total assets, equity capital, and total off-balance-sheet data items. The FR Y-11S is filed
annually, as of December 31, by top-tier holding companies for each individual nonbank
subsidiary that does not meet the criteria for filing the FR Y-11 with total assets of at least $250
million, but less than $500 million.
FR 2314 and FR 2314S
The FR 2314 reports collect financial information for direct or indirect foreign
subsidiaries of U.S. SMBs, Edge and agreement corporations, and holding companies. The
FR 2314 consists of an income statement and balance sheet, schedules that collect information
on changes in equity capital, the allowance for loan and lease losses, off-balance-sheet data
items, loans, and a memoranda section. A parent U.S. banking organization must file the
FR 2314 quarterly, as of the last calendar day of March, June, September, and December, for its
subsidiary if the subsidiary is owned or controlled by a parent U.S. holding company that has
total consolidated assets of $500 million or more as of June 30 of the preceding year or files the
FR Y-9C to meet supervisory needs, or the subsidiary is owned or controlled by a SMB or an
Edge or agreement corporation that has total consolidated assets equal to or greater than $500
million, and the subsidiary has (1) total assets of $1 billion or more, (2) total off-balance-sheet
activities of at least $5 billion, (3) equity capital of at least 5 percent of the top-tier organization’s
consolidated equity capital, or (4) operating revenue of at least 5 percent of the top-tier
organization’s consolidated operating revenue. The FR 2314 is filed annually, as of
December 31, for each individual subsidiary that does not meet the criteria for filing quarterly
and that has total assets of at least $500 million but less than $1 billion.
The FR 2314S is an abbreviated reporting form that collects four data items: net income,
total assets, equity capital, and total off-balance-sheet data items. The FR 2314S is filed
annually, as of December 31, for each individual subsidiary that does not meet the criteria for
filing the FR 2314 with assets of at least $250 million but less than $500 million.
Proposed Revisions
The Board proposes to revise the instructions for Schedule IS and related line item
captions on the reporting forms to remove the term “extraordinary items” and replace it with the
term “discontinued operations” on the FR Y-11 and FR 2314 effective for reports submitted on
or after April 1, 2018, beginning with the reports reflecting the March 31, 2018, report date.
These revisions reflect Accounting Standards Update No. 2015-01, “Simplifying Income
Statement Presentation by Eliminating the Concept of Extraordinary Items,” issued by the
Financial Accounting Standards Board in 2015. Currently, the terms “Loans net of unearned
income” and “Loans held for investment” are being used interchangeably throughout certain
regulatory reports although both descriptions are intended to have the same reported amounts.
Consistent with the Call Report, the Board would revise the captions and instructions “Loans net
of unearned income” and replace with “Loans held for investment” on all reports where
applicable for clarity and internal consistency. The proposed revisions would have a negligible
impact and the estimated reporting burden is not expected to change.

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Frequency
The Board is not modifying the reporting frequency of the FR Y-11 and FR 2314. The
current reporting frequencies provide adequate timely data to meet the analytical and supervisory
needs of the Federal Reserve.
Time Schedule for Information Collection
Holding companies are required to file the quarterly FR Y-11 and FR 2314 as of the end
of March, June, September, and December, and must submit them within sixty days after the asof date. Meeting the thresholds for filing quarterly is self-determined by the respondent and
ascertained as of the reporting date. The FR Y-11 annual, FR Y-11S, FR 2314 annual, and
FR 2314S are filed as of December 31st and are also submitted within sixty days after the as-of
date. The data from the FR Y-11and FR 2314 that are not given confidential treatment are
available to the public, but are not published routinely.
Legal Status
The FR Y-11, FR Y-11S, FR 2314, and FR 2314S reports are mandatory and are
authorized by section 5(c) of the Bank Holding Company Act (12 U.S.C. 1844(c)), section 10(b)
of the Home Owners’ Loan Act (12 U.S.C. 1467a(b)(2)), section 165 of the Dodd-Frank Act (12
U.S.C. 5365) (intermediate holding companies only), sections 8 and 13 of the International
Banking Act (12 U.S.C. 3106 and 3108), and section 618 of the Dodd-Frank Act (12 U.S.C.
1850a). Collection of information from non-functionally regulated direct or indirect foreign
subsidiaries of U.S. state member banks, and Edge and agreement corporations filing the
FR 2314 series of reports is authorized under sections 9(6), 25(7), and 25A(17) of the Federal
Reserve Act (12 U.S.C. 324, 602, and 625, respectively).
The Board does not consider these data to be confidential. However, a respondent may
request confidential treatment pursuant to section (b)(4) of the Freedom of Information Act
(5 U.S.C. 552(b)(4)).
Consultation Outside the Agency
On July 18, 2017, the Board published an initial notice in the Federal Register
(82 FR 32814) requesting public comment for 60 days on the extension, with revision, of the
FR Y-11, FR Y-11S, FR 2314, and FR 2314S. The proposal was amended (82 FR 43367)
September 15, 2017, to extend the implementation date from September 30, 2017, to March 31,
2018. The comment period for this notice expired on September 18, 2017. The Board did not
receive any comments. On January 23, 2018, the Board published a final notice in the Federal
Register (83 FR 3145) and the revisions will be implemented as proposed.
Estimates of Respondent Burden
As shown in the following table, the current annual reporting burden for the FR Y-11 and
FR 2314 are estimated to be 19,108 hours and 15,819 hours, respectively. These reporting

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requirements for the FR Y-11 and FR 2314 represents less than 1 percent of the total Federal
Reserve System paperwork burden.
Estimated
Number of
Annual
average
hours
respondents1 frequency
per response
FR Y-11 (quarterly)
FR Y-11 (annual)
FR Y-11S

634
230
299

4
1
1

6.8
6.8
1.0

17,245
1,564
299
19,108

523
256
322

4
1
1

6.6
6.6
1.0

13,807
1,690
322
15,819

Total

FR 2314 (quarterly)
FR 2314 (annual)
FR 2314S

Estimated
annual burden
hours

Total

The total estimated annual cost to the public for the FR Y-11 is $1,049,029. The total estimated
annual cost to the public for the FR 2314 is $868,463.2
Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
The current cost to the Federal Reserve System for collecting and processing the FR Y-11
and FR Y-11S is estimated to be $70,800 per year and the current cost for collecting and
processing the FR 2314 and FR 2314S is estimated to be $35,500 per year.

1

Of these respondents, 405 FR Y-11 filers and 388 FR 2314 filers are considered small entities as defined by the
Small Business Administration (i.e., entities with less than $550 million in total assets)
www.sba.gov/contracting/getting-started-contractor/make-sure-you-meet-sba-size-standards/table-small-businesssize-standards.
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Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $18, 45% Financial Managers at
$67, 15% Lawyers at $67, and 10% Chief Executives at $93). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2016, published March 31, 2017, www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined using
the BLS Occupational Classification System, www.bls.gov/soc/.

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