FRY7N_FRY7NS_FRY7Q_20191220_omb

Supporting Statement for the
Reports of Foreign Banking Organizations
(FR Y-7N, FR Y-7NS, and FR Y-7Q; OMB No. 7100-0125)
Prudential Standards for Large Bank Holding Companies,
Savings and Loan Holding Companies, and Foreign Banking Organizations
(Docket No. R-1658; RIN 7100-AF45)
Summary
The Board of Governors of the Federal Reserve System (Board), under authority
delegated by the Office of Management and Budget (OMB), has extended for three years, with
revision, the Reports of Foreign Banking Organizations (OMB No. 7100-0125). This information
collection comprises the following three reports:
 Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking
Organizations1 (FR Y-7N),
 Abbreviated Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign
Banking Organizations (FR Y-7NS), and
 Capital and Asset Report for Foreign Banking Organizations (FR Y-7Q).
The FR Y-7N and FR Y-7NS collect financial information for non-functionally regulated
U.S. nonbank subsidiaries held by foreign banking organizations (FBOs) other than through a
U.S. bank holding company (BHC), financial holding company (FHC), or U.S. bank. FBOs file
the FR Y-7N quarterly or annually or the FR Y-7NS annually predominantly based on asset size
thresholds. The FR Y-7Q collects consolidated regulatory capital information from all FBOs
either quarterly or annually. The FR Y-7Q is filed quarterly by FBOs that have effectively
elected to become U.S. FHCs and by FBOs that have total consolidated assets of $50 billion or
more, regardless of FHC status. All other FBOs file the FR Y-7Q annually.
The Board adopted a final rule that establishes risk-based categories for determining
prudential standards for large U.S. banking organizations and foreign banking organizations,
consistent with section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank), as amended by the Economic Growth, Regulatory Relief, and Consumer
Protection Act (EGRRCPA), and with the Home Owners’ Loan Act (HOLA). The final rule
amends certain prudential standards, including standards relating to liquidity, risk management,
stress testing, and single-counterparty credit limits, to reflect the risk profile of banking
organizations under each category; applies prudential standards to certain large savings and loan
holding companies (SLHCs) using the same categories; makes corresponding changes to
reporting forms; and makes additional modifications to the Board’s company-run stress test and
supervisory stress test rules, consistent with section 401 of EGRRCPA. The final rule is effective
December 31, 2019. The final rule amended the FR Y-7Q to align with revisions to
Regulation YY- Enhanced Prudential Standards (12 CFR 252). Previously, top-tier foreign
banking organizations with $50 billion or more in total consolidated assets were required to
report Part 1B - Capital and Asset Information for Top-tier Foreign Banking Organizations with
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Excludes nonbanking subsidiaries held through a U.S. bank holding company or U.S. bank subsidiary.

Consolidated Assets of $50 billion or more. The final rule now requires top-tier foreign banking
organizations that are subject to either sections 252.143 or 252.154 of the Board’s
Regulation YY to report Part 1B. The first as-of date for the amended FR Y-7Q is the next report
after the effective date of the final rule. There are no changes to the FR Y-7N or FR Y-7NS.
The current estimated total annual burden for the reports of FBOs is 2,834 hours, and
would decrease to 2,444 hours. The adopted revisions would result in a decrease of 390 hours.
The forms and instructions for the FR Y-7N, FR Y-7NS, and FR Y-Q are available on the
Board’s public website at https://www.federalreserve.gov/apps/reportforms/default.aspx.
Background and Justification
The Board implemented the FR Y-7 in January 1972 and required only foreign banks that
controlled a U.S. subsidiary bank to file. With the enactment of the International Banking Act of
1978 (IBA), the Congress established a framework for federal regulation of foreign banks
operating in U.S. financial markets. Section 7 of the IBA authorizes the Federal Reserve to
examine U.S. branches, agencies, and subsidiary commercial lending companies of foreign
banks and to assess the condition of the multi-state banking operations of foreign banks. Section
8(a) of the IBA states that foreign banks that engage in banking in the United States through a
U.S. branch, agency or subsidiary commercial lending company and companies that control such
foreign banks are subject to the provisions of the BHC Act, as amended.
In 2002, the Board revised the FR Y-7 and implemented the FR Y-7Q, FR Y-7N, and
FR Y-7NS. Revisions to the FR Y-7 included moving the risk-based capital reporting
requirement to the FR Y-7Q and moving the Nonbank Financial Information Summary (NFIS)
report, which included data from U.S. nonbank subsidiaries held directly by a foreign parent (i.e.,
not through a U.S. BHC or U.S. FHC or U.S. bank), to the FR Y-7N or FR Y-7NS.
In December 2013, the Board reduced reporting burden by increasing the asset size
thresholds for filing the FR Y-7N and FR Y-7NS annual reports to total assets greater than or
equal to $500 million, but less than $1 billion and to total assets of at least $250 million, but less
than $500 million, respectively.
In March 2014, the Board revised the FR Y-7Q to modify the quarterly filing
requirements and to add a data item to the reporting form. The respondent panel was modified to
require all FBOs with total consolidated assets of $50 billion or more to begin filing quarterly,
effective March 31, 2014, regardless of FHC status. The data item was added to Part 1 to collect
the top-tier FBO’s total combined assets of U.S. operations, net of intercompany balances and
transactions between U.S. domiciled affiliates, branches, and agencies.
In December 2014, the Board revised the FR Y-7Q to collect a new data item, total U.S.
non-branch assets, to determine whether an FBO meets the threshold for formation of an IHC.
This item collects the sum of the total combined U.S. assets of a top-tier FBO’s top-tier U.S.
domiciled affiliates less its branch and agency assets.

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The Federal Reserve System uses information collected on this family of reports to assess
an FBO’s ability to be a continuing source of strength to its U.S. operations and to determine
compliance with U.S. laws and regulations. This information is not available from other sources.
Description of the Information Collection
FR Y-7N and FR Y-7NS
The FR Y-7N consists of an income statement and a balance sheet, schedules that collect
information on changes in equity capital, changes in allowance for credit losses, off-balancesheet data items, 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 at least $5
billion, 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) with total assets of at least $500 million, but less than $1 billion.
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) with total assets of at least $250 million, but less than
$500 million.
FR Y-7Q
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 risk-based
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, FBOs that file the FR Y-7Q because of
the FHC designation 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.

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Adopted Revisions to the FR Y-7Q
The Board adopted a final rule that establishes risk-based categories for determining
prudential standards for large U.S. banking organizations and foreign banking organizations,
consistent with section 165 of the Dodd-Frank, as amended by the EGRRCPA, and with the
HOLA. The final rule amends certain prudential standards, including standards relating to
liquidity, risk management, stress testing, and single-counterparty credit limits, to reflect the risk
profile of banking organizations under each category; applies prudential standards to certain
large savings and loan holding companies using the same categories; makes corresponding
changes to reporting forms; and makes additional modifications to the Board’s company-run
stress test and supervisory stress test rules, consistent with section 401 of EGRRCPA. The final
rule is effective December 31, 2019.
The final rule amended the FR Y-7Q to align with revisions to Regulation YY.
Previously, top-tier foreign banking organizations with $50 billion or more in total consolidated
assets were required to report Part 1B - Capital and Asset Information for Top-tier Foreign
Banking Organizations with Consolidated Assets of $50 billion or more. The final rule now
requires top-tier foreign banking organizations that are subject to either sections 252.143 or
252.154 of the Board’s Regulation YY to report Part 1B. Section 252.143 outlines risk-based and
leverage capital requirements for foreign banking organizations with total consolidated assets of
$250 billion or more but combined U.S. assets of less than $100 billion, while section 252.154
describes risk-based and leverage capital requirements for foreign banking organizations with
$100 billion or more in total consolidated assets and combined U.S. assets of $100 billion or
more. The first as-of date for the amended FR Y-7Q is the next report after the effective date of
the final rule. There are no changes to the FR Y-7N or FR Y-7NS.
Time Schedule for Information Collection and Publication
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. Meeting the thresholds for filing quarterly is self-determined by the respondent and
ascertained as of the reporting date. The data from these reports that are not given confidential
treatment are available to the public, but are not published routinely.
Legal Status
The FR Y-7N, FR Y-7NS, and FR Y-7Q are authorized by section 5(c) of the Bank
Holding Company Act of 1956 (12 U.S.C. § 1844(c)) and sections 8(c) and 13 of the IBA
(12 U.S.C. §§ 3106(c) and 3108). Section 165 of the Dodd-Frank Act (12 U.S.C. § 5365) directs
the Board to establish enhanced prudential standards for certain companies, including certain
FBOs. The obligation of covered institutions to report this information is mandatory.
Information disclosed in these reports is collected as part of the Board’s supervisory
process and may be accorded confidential treatment under exemption 8 of the Freedom of
Information Act (FOIA) (5 U.S.C. § 552(b)(8)), but information that is required to be disclosed
publicly is generally not considered confidential. However, individual respondents may request

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that certain data be protected pursuant to exemptions 4 and 6 (5 U.S.C. §§ 552(b)(4) and (6)) of
FOIA, where such data relates to trade secrets and financial information, or to personal
information, respectively. The applicability of these exemptions would have to be determined on
a case-by-case basis.
Consultation Outside the Agency
There has been no consultation outside the Federal Reserve System.
Public Comments
On November 29, 2018, the Board published a notice of proposed rulemaking for U.S.
banking organizations in the Federal Register (83 FR 61408) for public comment. The comment
period for this notice expired on January 22, 2019. On May 15, 2019, the Board published a
notice of proposed rulemaking for foreign banking organizations in the Federal Register
(84 FR 21988) for public comment. The comment period for this notice expired on June 21,
2019. The Board did not receive any specific comments related to the Paperwork Reduction Act
(PRA) analysis. On November 1, 2019, the Board published a final rule in the Federal Register
(84 FR 59032). The final rule is effective on December 31, 2019.
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for this family of reports
is 2,834 hours, and would decrease to 2,444 hours with the adopted revisions. The Board
estimates that revisions to the FR Y-7Q would not impact the respondent count, but the estimated
average hours per response would decrease from 3 hours to 2.25 hours for quarterly filers. These
reporting requirements represent less than 1 percent of total Federal Reserve System paperwork
burden.

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Estimated
Estimated
Annual
number of
average hours
frequency
respondents2
per response
Current
FR Y-7N (quarterly)
FR Y-7N (annual)
FR Y-7NS
FR Y-7Q (quarterly)
FR Y-7Q (annual)

Estimated
annual burden
hours

35
19
22
130
29

4
1
1
4
1

7.6
7.6
1
3
1.5

1,064
144
22
1,560
44
2,834

35
19
22
130
29

4
1
1
4
1

7.6
7.6
1
2.25
1.5

Total

1,064
144
22
1,170
44
2,444

Change

( 390)

Total
Proposed
FR Y-7N (quarterly)
FR Y-7N (annual)
FR Y-7NS
FR Y-7Q (quarterly)
FR Y-7Q (annual)

The current estimated total annual cost to the public for this information collection is
$163,238 and would decrease to $140,774 with the adopted revisions.3
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 cost to the Federal Reserve System for collecting and processing the FR Y-7N,
FR Y-7NS, and FR Y-7Q is estimated to be $158,800 per year.

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Of the respondents, approximately 1 FR Y-7N (quarterly), 5 FR Y-7N (annually), 22 FR Y-7NS, and 0 FR Y-7Q
are estimated to be small entities as defined by the Small Business Administration (i.e., entities with less than $550
million in total assets), https://www.sba.gov/document/support--table-size-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 $19, 45% Financial Managers at
$71, 15% Lawyers at $69, and 10% Chief Executives at $96). 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 2018, published March 29, 2019, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Occupational Classification System, https://www.bls.gov/soc/.

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