FR2314_FR2314S_FRY7N_FRY7NS_FRY7Q_FRY11_FRY11S_20180821_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),
Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations
(FR 2314 and FR 2314S; OMB No. 7100-0073),
Financial Statements of U.S. Nonbank Subsidiaries Held by
Foreign Banking Organizations (FR Y-7N and FR Y-7NS; OMB No. 7100-0125), and
Capital and Asset Report for Foreign Banking Organizations
(FR Y-7Q; OMB No.7100-0125)
Summary
The Board of Governors of the Federal Reserve System (Board), under delegated
authority from the Office of Management and Budget (OMB), has extended for three years, with
revision, the following mandatory reports:
 Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding Companies
(FR Y-11; OMB No. 7100-0244),
 Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations (FR 2314;
OMB No. 7100-0073), and
 Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking
Organizations (FR Y-7N; OMB No. 7100-0125).





The Board has extended, without revision, the following mandatory reports:
Abbreviated Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding
Companies (FR Y-11S; OMB No. 7100-0244),
Abbreviated Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations
(FR 2314S; OMB No. 7100-0073),
Abbreviated Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign
Banking Organizations (FR Y-7NS; OMB No. 7100-0125), and
Capital and Asset Report for Foreign Banking Organizations (FR Y-7Q;
OMB No.7100-0125).

The Board has adopted revisions to the FR Y-11, FR 2314, and FR Y-7N reporting forms
and instructions that are consistent with certain recent changes to the FR Y-9 family of reports
(OMB No. 7100-0128)1 and the Federal Financial Institutions Examination Council (FFIEC)
Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and
FFIEC 051; OMB No. 7100-0036).2 Specifically, the changes (1) add a new data item to the
balance sheet to separate and reclassify equity securities with readily determinable fair values not
held for trading from the “available for sale” category in accordance with Financial Accounting
Standards Board’s (FASB) Accounting Standards Update (ASU) No. 2016-01, “Recognition and
Measurement of Financial Assets and Financial Liabilities” and (2) add new data items to the
income statement to reflect the proper reporting of income associated with these securities.
These revisions are effective for reports reflecting the June 30, 2018, report date.
1
2

See 83 FR 12395 (March 21, 2018).
See 83 FR 939 (January 8, 2018).

The total current annual paperwork burden for the FR Y-11 family of reports is 14,125
hours. The total current annual paperwork burden for the FR 2314 family of reports is 14,296
hours. The total current annual paperwork burden for the FR Y-7 family of reports is 3,091
hours. The burden hours are not expected to change with the revisions.
Background and Justification
The FR Y-11 family of reports collects financial information for individual 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), which is
essential for monitoring the subsidiaries’ potential impact on the condition of the holding
company or its subsidiary banks. The FR Y-11 family of reports is necessary because other data
collected by the Board on a consolidated and parent-company-only basis does not reveal the
extent of problems that may exist within a holding company’s nonbank subsidiaries, as 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 information to assist the Federal Reserve in
the formulation of regulations and supervisory policies.
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.
The FR Y-7N and the FR Y-7NS are used to assess a foreign banking organization’s
(FBO) ability to be a continuing source of strength to its U.S. operations and to determine
compliance with U.S. laws and regulations. The FR Y-7Q collects consolidated regulatory
capital and asset information from all FBOs. This information is not available from other
sources.
Description of Information Collection
The FR Y-11 consists of an income statement, 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. Domestic holding companies file the FR Y-11
reports for their U.S. nonbank subsidiaries. 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 $5 billion or
more, (3) equity capital of at least 5 percent of the top-tier holding company’s consolidated

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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 and with total assets of at least $500 million, but less than $1 billion.
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 and with total assets of at least
$250 million, but less than $500 million.
The FR 2314 reports collect financial information for direct or indirect foreign
subsidiaries of U.S. state member banks (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, offbalance-sheet data items, and 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 $5 billion or more, (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 and with assets of at least $250 million but less than $500 million.
The FR Y-7N consists of an income statement and a balance sheet, schedules that collect
information on changes in equity capital, changes in the allowance for loan and lease losses, offbalance-sheet data items, and loans, and a memoranda section. All FBOs file the FR Y-7N
quarterly for their significant nonbank subsidiaries. Subsidiaries are defined as significant if they
have total assets of at least $1 billion or off-balance-sheet activities (including commitments to
purchase foreign currencies and U.S. dollar exchange, all other futures and forwards contracts,
option contracts, and the notional value of interest rate swaps, exchange swaps and other swaps)
of $5 billion or more, as of the end of a quarter. FBOs commence quarterly reporting for these
subsidiaries at the end of the quarter in which the subsidiaries meet the significance threshold.
The FR Y-7N is filed annually, as of December 31, for each individual nonbank 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.

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The FR Y-7NS is an abbreviated reporting form that collects net income, total assets,
equity capital, and total off-balance-sheet data items. The FR Y-7NS is filed annually, as of
December 31, by top-tier FBOs for each individual nonbank subsidiary that does not meet the
filing criteria for filing the detailed report and with total assets of at least $250 million, but less
than $500 million.
The FR Y-7Q collects consolidated capital and asset information from all FBOs. Part 1
of the reporting form currently collects the following information: tier 1 capital, total riskbased capital, risk-weighted assets, total consolidated assets, total combined assets of U.S.
operations, net of intercompany balances and transactions between U.S. domiciled affiliates,
branches, and agencies, and total U.S. non-branch assets. In addition, an FBO that files the
FR Y-7Q because it is a financial holding company (FHC) also must provide separate capital
schedules on Part 2 of the FR Y-7Q quarterly for each lower-tier FBO operating a branch,
agency, Edge or agreement corporation, or commercial lending company in the United States.
The FR Y-7Q is filed quarterly by FBOs if the top-tier FBO or any FBO in its tiered
structure has effectively elected to be an FHC and by FBOs with total consolidated assets of $50
billion or more, regardless of FHC status. The FR Y-7Q is filed annually if the FBO or any FBO
in its tiered structure has not effectively elected to be a FHC and the FBO has total consolidated
assets of less than $50 billion.
Proposed Revisions
The Board has proposed a number of revisions to the FR Y-11, FR 2314, and FR Y-7N
reporting requirements that are consistent with changes to the Call Report and the FR Y-9 family
of reports that were effective March 31, 2018. The revisions address the changes in accounting
for equity investments under ASU 2016-01.
Section 37(a) of the Federal Deposit Insurance Act (12 U.S.C. 1831n(a)) states that, in
general, the accounting principles applicable to reports required to be filed with federal banking
agencies “shall be uniform and consistent with generally accepted accounting principles.” The
proposal would maintain consistency with U.S. generally accepted accounting principles
(GAAP) by implementing the provisions of ASU 2016-01 in the FR Y-11, FR 2314, and
FR Y-7N reports in accordance with the effective dates set forth in the ASU.
In its summary of this ASU, which was issued in January 2016, the FASB described how
one of the main provisions of the ASU differs from current GAAP as follows: “the amendments
in this update supersede the guidance to classify equity securities with readily determinable fair
values into different categories (that is, trading or available-for-sale) and require equity securities
(including other ownership interests, such as partnerships, unincorporated joint ventures, and
limited liability companies) to be measured at fair value with changes in the fair value
recognized through net income.”
Entities would apply ASU 2016-01 to the FR Y-11, FR 2314, and FR Y-7N in
accordance with the effective dates set forth in the ASU. For entities that are public business
entities, as defined in U.S. GAAP, ASU 2016-01 is effective for fiscal years beginning after

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December 15, 2017, including interim periods within those fiscal years. For example, entities
with a calendar year fiscal year that are public business entity would begin to apply ASU 201601 for the March 31, 2018 reporting. For all other holding companies, the ASU is effective for
fiscal years beginning after December 15, 2018, and interim periods within fiscal years
beginning after December 15, 2019. For example, a holding company with a calendar year fiscal
year that is not a public business entity would begin to apply ASU 2016-01 in its reports for
December 31, 2019.
In order to make the FR Y-11, FR 2314, and FR Y-7N reports consistent with
ASU 2016-01, the proposal would revise the reporting forms and instructions by (1) adding a
new data item (2.c.) to the balance sheet to separate and reclassify equity securities with readily
determinable fair values from the “available for sale” category and (2) adding new data items to
the income statement to reflect the proper reporting of income associated with these securities
(8.a, 8.b, and 8.c).
Schedule IS, item 8, would be broken into items effective June 30, 2018, in order to more
accurately reflect the income (loss) on equity securities. A new item 8.a would capture income
(loss) before unrealized holding gains (losses) on equity securities not held for trading,
applicable income taxes, and discontinued operations. A new item 8.b would capture unrealized
holding gains (losses) on equity securities not held for trading. In addition to unrealized holding
gains (losses) during the year-to-date reporting period on equity securities with readily
determinable fair values, holding companies would also include the year-to-date changes in the
carrying amounts of equity investments without readily determinable fair values. The existing
Schedule IS, item 8, which captures income (loss) before applicable income taxes and
discontinued operations, would be renumbered 8.c, and would represent the sum of items 8.a and
8.b.
From June 30, 2018, through September 30, 2020, the instructions for item 8.b and the
reporting form would include guidance stating that the item is to be completed only by holding
companies that have adopted ASU 2016-01. Institutions that have not adopted ASU 2016-01
would leave item 8.b blank.
Finally, from June 30, 2018, through September 30, 2020, the instructions for item 6,
“Realized gains (losses) on securities not held in trading accounts,” and the reporting form will
include guidance stating that, for institutions that have adopted ASU 2016-01, item 6 includes
realized gains (losses) only on available-for-sale (AFS) debt securities. Effective December 31,
2020, the caption for item 6 would be revised to “Realized gains (losses) on available-for-sale
debt securities”.
Another outcome of the change in accounting for equity investments under ASU 2016-01
is the elimination of the concept of available-for-sale (AFS) equity securities, which are
measured at fair value on the balance sheet, with changes in fair value recognized through other
comprehensive income. The total fair value of AFS securities, which includes both debt and
equity securities, was previously reported on the balance sheet of the FR Y-11, FR 2314, and
FR Y-7N report forms in Schedule BS, item 2.b. Item 2.c was created on Schedule BS effective
June 30, 2018, to capture equity securities. From June 30, 2018, through September 30, 2020,

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the instructions for item 2.c and the reporting form for Schedule BS would include guidance
stating that item 2.c is to be completed only by entities that have adopted ASU 2016-01. Entities
that have not adopted ASU 2016-01 would leave item 2.c blank. During this period, the
instructions for Schedule BS, item 2.b, “Available-for-sale securities,” would explain that
entities that have adopted ASU 2016 01 should include only debt securities in item 2.b.
Effective December 31, 2020, the caption for item 2.b would be revised to “Available-for-sale
debt securities” and all entities would report their holdings of equity securities with readily
determinable fair values not held for trading in item 2.c.
In addition, the accumulated balance of the unrealized gains (losses) on AFS equity
securities, net of applicable income taxes, that have been recognized through other
comprehensive income is now included in accumulated other comprehensive income (AOCI),
which is reported in the equity capital section of the FR Y-11, FR 2314, and FR Y-7N reports
balance sheet in Schedule BS, item 18.d. With the elimination of AFS equity securities on the
effective date of ASU 2016-01, the net unrealized gains (losses) on these securities that had been
included in AOCI will be reclassified (transferred) from AOCI into the retained earnings
component of equity capital, which is reported on the balance sheet in Schedule BS, item 18.c.
After the effective date, changes in the fair value of (i.e., the unrealized gains and losses on) a
holding company’s equity securities that would have been classified as AFS had the previously
applicable accounting standards remained in effect will be recognized through net income rather
than other comprehensive income.
The Board notes that, because of the different effective dates for ASU 2016-01 for public
business entities and all other entities, as well as the varying fiscal years across the population of
entities that file these reports, the period over which entities will be implementing this ASU
ranges from the first quarter of 2018 through the fourth quarter of 2020. December 31, 2020,
will be the first quarter-end FR Y-11, FR 2314, and FR Y-7N report date for which all entities
would be required to prepare their nonbank reports in accordance with ASU 2016-01. As a
result, and in response to the ASU, the Board is revising the reporting of information on equity
securities and other equity investments that would be introduced in the nonbank reports effective
June 30, 2018, but would not be fully phased in until December 31, 2020.
Time Schedule for Data Collection
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 as-of
date. Meeting the thresholds for filing quarterly is self-determined by the respondent and
ascertained as of the reporting date. The annual FR Y-11 and FR 2314, FR Y-11S, and the
FR 2314S are filed as of December 31 and are also submitted within sixty days after the as-of
date.
FBOs are required to file the FR Y-7N (quarterly or annually) and FR Y-7NS reports 60
days after the report date. All FBOs are required to file the FR Y-7Q within 90 days after the
report date. Respondents self-determine, as of the reporting date, whether they meet the
thresholds for filing quarterly.

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Legal Status
The Board has the authority to require BHCs and any subsidiary thereof, savings and loan
holding companies and any subsidiary thereof, and securities holding companies and any affiliate
thereof to file the FR Y-11 and FR 2314 pursuant to, respectively, section 5(c) of the Bank
Holding Company Act (BHC Act) (12 U.S.C. 1844(c)), section 10(b) of the Homeowners’ Loan
Act (12 U.S.C. 1467a(b)), and section 618 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act) (12 U.S.C. 1850a). The Board has the authority to require
SMBs, agreement corporations, and Edge corporations to file the FR 2314 pursuant to,
respectively, sections 9(6), 25(7), and 25A(17) of the Federal Reserve Act (12 U.S.C. 324, 602,
and 625). With respect to FBOs and their subsidiary IHCs, section 5(c) of the BHC Act, in
conjunction with section 8 of the International Banking Act (12 U.S.C. 3106), authorizes the
board to require FBOs and any subsidiary thereof to file the FR Y-11 reports, the FR 2314
reports, FR Y-7N reports, and the FR Y-7Q. These reports are mandatory.
Information collected in these reports generally is not considered confidential. However,
because the information is collected as part of the Board’s supervisory process, certain
information may be afforded confidential treatment pursuant to exemption 8 of the Freedom of
Information Act (FOIA) (5 U.S.C. 552(b)(8)). Individual respondents may request that certain
data be afforded confidential treatment pursuant to exemption 4 of FOIA if the data has not
previously been publically disclosed and the release of the data would likely cause substantial
harm to the competitive position of the respondent (5 U.S.C. 552(b)(4)). Additionally, individual
respondents may request that personally identifiable information be afforded confidential
treatment pursuant to exemption 6 of FOIA if the release of the information would constitute a
clearly unwarranted invasion of personal privacy (5 U.S.C. 552(b)(6)). The applicability of
FOIA exemptions 4 and 6 would be determined on a case-by-case basis.
Consultation Outside the Agency
On May 1, 2018, the Board published an initial notice in the Federal Register
(83 FR 19062) requesting public comment for 60 days on the extension, with revision, of these
reports. The comment period for this notice expired on July 2, 2018, and the Board did not
receive any comments. The revisions will be implemented as proposed. On August 8, 2018, the
Board published a final notice in the Federal Register (83 FR 39091).
Estimates of Respondent Burden
As shown in the following table, the current annual reporting burden for the FR Y-11 and
the FR Y-11S is estimated to be 14,125. The changes would not result in a change to the current
reporting burden estimates for these reports due to the negligible burden associated with the
changes. These reporting requirements represent less than 1 percent of the total Federal Reserve
System paperwork burden.

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Estimated
Number of
Annual
average hours
respondents3 frequency
per response
FR Y-11 (quarterly)
FR Y-11 (annual)
FR Y-11S

461
191
287

4
1
1

6.8
6.8
1.0

Total

Estimated
annual burden
hours
12,539
1,299
287
14,125

The total cost to the public for the FR Y-11 reports is estimated to be $791,706.4
As shown in the following table, the current annual reporting burden for the FR 2314 and
FR 2314S is estimated to be 14,296 hours. The changes would not result in a change to the
current reporting burden estimates for these reports due to the limited number of institutions
impacted and negligible burden associated with the changes. These reporting requirements
represent less than 1 percent of the total Federal Reserve System paperwork burden.
Estimated
Number of
Annual
average
hours
respondents5 frequency
per response
FR 2314 (quarterly)
FR 2314 (annual)
FR 2314S

474
225
297

4
1
1

6.6
6.6
1.0

Total

Estimated
annual burden
hours
12,514
1,485
297
14,296

The total cost to the public for the FR 2314 reports is estimated to be $801,291.4
As shown in the following table, the current annual reporting burden for the FR Y-7N,
FR Y-7NS, and FR Y-7Q is estimated to be 3,091 hours. The changes would not result in a
change to the current reporting burden estimates for these reports due to the limited number of
3

Of these respondents, 110 FR Y-11 (quarterly), 32 FR Y-11 (annual), and 273 FR Y-11S 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/document/support--table-size-standards. Respondent count is as of December 31, 2016, for the
FR Y-11 (annual) and the FR Y-11S. Respondent count for the FR Y-11 (quarterly) is as of June 30, 2017.
4
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
$69, 15% Lawyers at $68, and 10% Chief Executives at $94). 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 2017, published March 30, 2018, www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined using
the BLS Occupational Classification System, www.bls.gov/soc/.
5
Of these respondents, 35 FR 2314 (quarterly), 29 FR 2314 (annual), and 297 FR 2314S 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/document/support--table-size-standards. Respondent count is as of December 31, 2016, for the
FR 2314 (annual) and the FR 2314S. Respondent count for the FR 2314 (quarterly) is as of June 30, 2017.

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institutions impacted and negligible burden associated with the changes. These reporting
requirements represent less than 1 percent of the total Federal Reserve System paperwork
burden.
Estimated
Number of
Annual
average hours
respondents6 frequency
per response
FR Y-7N (quarterly)
FR Y-7N (annual)
FR Y-7NS
FR Y-7Q (quarterly)
FR Y-7Q (annual)

45
23
31
136
32

4
1
1
4
1

6.8
6.8
1.0
3.0
1.5

Total

Estimated
annual burden
hours
1,224
156
31
1,632
48
3,091

The total cost to the public for the FR Y-7 reports is estimated to be $173,251.4
Sensitive Questions
These information collections contain 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
reports would decrease to $110,600 from $114,700 with a one-time cost of $13,400. The current
cost to the Federal Reserve System for collecting and processing the FR 2314 reports would
decrease to $83,200 from $92,500 with a one-time cost of $11,700. The current cost to the
Federal Reserve System for collecting and processing the FR Y-7 reports would decrease to
$126,900 from $129,000 with a one-time cost of $1,500.

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Of these respondents, 45 FR Y-7N (quarterly), 23 FR Y-7N (annual), and 31 FR Y-7NS respondents 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/document/support--table-size-standards. Respondent count is as of December 31,
2016, for the FR Y-7N (annual) and FR Y-7NS. Respondent count for the FR Y-7N (quarterly) is as of June 30,
2017.

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