FFIEC002_FFIEC002S_20200603_omb_emergency

Supporting Statement for the
Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks
(FFIEC 002; OMB No. 7100-0032)
and the
Report of Assets and Liabilities of a Non-U.S. Branch that is Managed or Controlled by a
U.S. Branch or Agency of a Foreign (Non-U.S.) Bank
(FFIEC 002S; OMB No. 7100-0032)
Summary
The Board of Governors of the Federal Reserve System (Board) requests approval from
the Office of Management and Budget (OMB) to revise the Federal Financial Institutions
Examination Council (FFIEC) Report of Assets and Liabilities of U.S. Branches and Agencies of
Foreign Banks (FFIEC 002; OMB No. 7100-0032) and Report of Assets and Liabilities of a
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or Agency of a Foreign (NonU.S.) Bank (FFIEC 002S; OMB No. 7100-0032) under the emergency clearance provisions of
OMB’s regulations. The Board submits this request on behalf of itself, Federal Deposit Insurance
Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) (collectively, the
agencies). No separate submission will be made by the FDIC or OCC.
The FFIEC 002 must be submitted quarterly by U.S. branches and agencies of foreign
banks. The report requests detailed schedules of assets and liabilities as a condition report with a
variety of supporting schedules. This information is used to fulfill the agencies’ supervisory and
regulatory requirements pursuant to the International Banking Act of 1978 (IBA).
The FFIEC 002S is a mandatory supplement to the FFIEC 002 and collects information
on assets and liabilities of any non-U.S. branch that is managed or controlled by a U.S. branch or
agency of a foreign bank.1 A separate FFIEC 002S supplement is completed by the managing or
controlling U.S. branch or agency for each applicable foreign branch. The FFIEC 002S
collection improves data on U.S. deposits, credit, and international indebtedness, and assists U.S.
bank supervisors determine the assets managed or controlled by the U.S. agency or branch of the
foreign bank.
The Board proposes to revise the FFIEC 002 effective beginning with reports for the June
30, 2020, report date. The proposed revisions would collect data regarding loans affected by a
provision of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (section
4013).2 There are no proposed revisions to the FFIEC 002S at this time. The current estimated
total annual burdens for the FFIEC 002 and FFIEC 002S are 20,373 hours and 912 hours,
respectively. The proposed estimated total annual burden for the FFIEC 002 would increase to
20,791 hours with the proposed revisions, and the burden for the FFIEC 002S would remain
unchanged. The forms and instructions are available on the FFIEC’s public website at
https://www.ffiec.gov/ffiec_report_forms.htm.
“Managed or controlled” means that a majority of the responsibility for business decisions, including, but not
limited to, decisions with regard to lending, asset management, funding, liability management, or the responsibility
for recordkeeping with respect to assets or liabilities for that foreign branch resides at the U.S. branch or agency.
2
Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281 (March. 27, 2020).
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Background and Justification
Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks
(FFIEC 002)
The IBA specifies that foreign banks’ branches and agencies in the United States are
subject to the supervisory authority of the U.S. federal banking agencies and that responsibility
for federal supervision is to be shared among the agencies. As one step in carrying out the
supervisory and regulatory responsibilities imposed by the IBA, the agencies instituted the
FFIEC 002 in June 1980. The report collects from the U.S. branches and agencies of foreign
banks information that is similar to that collected by the Call Reports (FFIEC 031, FFIEC 041,
and FFIEC 051; OMB No. 7100-0036) from U.S. commercial banks and savings associations,
although the FFIEC 002 collects fewer data items.
In addition to its supervisory and regulatory uses, the Board uses the information
collected by the FFIEC 002 to conduct monetary and financial analysis essential for the conduct
of monetary policy. The data are used to analyze credit developments, identify sources and uses
of funds in the banking sector, and assess financial developments within the U.S. banking
system. The data help to interpret the bank credit and deposit information that the Board uses
when making monetary policy decisions and assists the Board in gauging the response to those
decisions.
Report of Assets and Liabilities of a Non-U.S. Branch that is Managed or Controlled
by a U.S. Branch or Agency of a Foreign (Non-U.S.) Bank (FFIEC 002S)
Foreign banks often conduct business at branches that are domiciled in countries other
than the United States, but which are largely run out of the banks’ U.S. agency or branch office,
with a separate set of books but often with overlapping management responsibilities. Such
branches often engage in transactions with U.S. residents. The FFIEC 002S collects asset and
liability data regarding each such branch.
The information reported on the FFIEC 002S is collected for several reasons: (1) to
monitor deposit and credit transactions of U.S. residents, (2) to monitor the impact of policy
changes such as changes in reserve requirements, (3) to analyze structural issues concerning
foreign bank activities in U.S. markets, (4) to understand indebtedness and flows of banking
funds in developing countries, in connection with data collected by the International Monetary
Fund and the Bank for International Settlements that are used in economic analysis, and (5) to
collect information helpful for the supervision of U.S. offices of foreign banks, which often are
managed jointly with these branches.
The FFIEC 002S collects details on transactions with U.S. residents and with residents of
the banks’ home countries. In most cases, these data cover a large proportion of the subject
branches’ total activities since most branches have heavy exposures to their home countries and
deal largely with U.S. customers. This collection allows for the more complete data on U.S.
deposits, credit, and international indebtedness and assists U.S. bank supervisors in determining
the assets managed or controlled by the U.S. agency or branch of the foreign bank.

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Description of Information Collection
The FFIEC 002 consists of a summary schedule of assets and liabilities (Schedule RAL)
and several supporting schedules. Each schedule requires information on balances of the entire
reporting branch or agency. On the schedules for cash (Schedule A), loans (Schedule C), and
deposits (Schedule E), separate details are reported on balances of International Banking
Facilities (IBFs). Unlike the Call Report for domestic banks and thrifts, the FFIEC 002 collects
no income data.
A separate FFIEC 002S must be completed by any U.S. branch or agency of a foreign
bank for each non-U.S. banking branch of its parent bank that the U.S. branch or agency
manages or controls. The FFIEC 002S covers all of the foreign branch’s assets and liabilities,
regardless of the currency in which they are payable. The supplement also covers transactions
with all entities, both related and nonrelated, regardless of location. All due from/due to
relationships with related institutions, both depository and nondepository, are reported on a gross
basis, that is, without netting due from and due to data items against each other.
Respondent Panel
The reporting panel for the FFIEC 002 and FFIEC 002S consists of all U.S. branches and
agencies (including their IBFs) of foreign banks, whether federally licensed or state chartered,
insured or uninsured.
Proposed Revisions to the FFIEC 002
The agencies propose under the emergency clearance provisions of OMB’s regulations to
revise the FFIEC 002 effective beginning with the June 30, 2020, report date. The agencies have
determined that (1) the collection of information within the scope of this request is needed prior
to the expiration of time periods established under 5 CFR 1320.10, (2) this collection of
information is essential to the mission of the agencies, and (3) the agencies cannot reasonably
comply with the normal clearance procedures because an unanticipated event has occurred and
the use of normal clearance procedures is reasonably likely to prevent or disrupt the collection of
information.
Recent events have suddenly and significantly impacted financial markets. The spread of
the coronavirus disease 2019 (COVID-19) has disrupted economic activity in many countries. In
addition, financial markets have experienced significant volatility. The magnitude and
persistence of the overall effects on the economy remain highly uncertain. Small businesses are
facing severe liquidity constraints and a collapse in revenue streams. In addition, financial
disruptions arising in connection with the COVID-19 situation have caused many depositors to
have a more urgent need for access to their funds by remote means, particularly in light of the
closure of many depository institution branches and other in person facilities.
Section 4013 of the CARES Act permits banking organizations flexibility in modifying
loans related to COVID-19. The statute also permits the agencies to collect information about the
volume of loans modified under this section. Since the agencies anticipate a significant amount

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of activity related to these modifications will occur in the second quarter, the agencies are
requesting emergency clearance to add two new reporting items for these loans. The agencies
believe that, in light of current market uncertainty, and the urgent policy matter of these
programs and facilities at issue, the public interest is best served by implementing this revision as
soon as possible. The agencies request emergency clearance from OMB to permit these revisions
for the June 30, 2020, FFIEC 002.
CARES Act Section 4013 - Temporary Relief from Troubled Debt Restructurings (TDR)
Section 4013 of the CARES Act suspends the requirements under United States generally
accepted accounting principles for eligible loan modifications related to the COVID-19
pandemic that would otherwise be categorized as troubled debt restructurings (TDRs). The
CARES Act defines an eligible loan under section 4013 (section 4013 loan) as a loan
modification that is (1) related to COVID-19, (2) executed on a loan that was not more than 30
days past due as of December 31, 2019, and (3) executed between March 1, 2020, and the earlier
of (A) 60 days after the date of termination of the National Emergency concerning the
COVID-19 outbreak or (B) December 31, 2020. Section 4013(d)(2) of the CARES Act provides
that federal banking agencies may collect data about section 4013 loans for supervisory
purposes.
Consistent with section 4013(d)(2) of the CARES Act, the agencies seek to collect
information about the volume of loans modified under section 4013. These confidential items
would enable the agencies supervision staff to monitor credit risk, aggregate industry trends, and
individual institutions’ use of the temporary relief provided by section 4013. The agencies are
proposing to add two new data items to the FFIEC 002, which would be collected quarterly
beginning with the June 30, 2020, report date. These new items, Memorandum item 5.a,
“Number of Section 4013 loans outstanding,” and Memorandum item 5.b, “Outstanding balance
of Section 4013 loans”, would be added to Schedule C Loans, Part I, Loans and Leases. U.S.
branch and agencies would be instructed to report the total number of loans outstanding that have
been modified under section 4013 and the outstanding balance of these loans in Schedule C,
Loans, Part I, Loans and Leases, Memorandum items 5.a and 5.b, respectively, with the
collection of these items expected to be time-limited. The agencies expect to propose to
discontinue the collection of a specific item once the aggregate industry activity has diminished
to a point where the individual information is of limited practical utility.
The agencies would collect U.S. branch and agency-level information on a confidential
basis. Such information is permitted to be collected on a confidential basis, consistent with
5 U.S.C. § 552(b)(8).3 The public disclosure of supervisory information on section 4013 loans
could have a detrimental impact on financial institutions offering modifications under this
provision to borrowers that need relief due to COVID-19. Financial institutions may be reluctant
to offer modifications under section 4013 if information on these modifications made by each
institution is publicly available, as analysts, investors, and other users of public FFIEC 002
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Exemption 8 of the Freedom of Information Act (FOIA), specifically exempts from disclosure information
“contained in or related to examination, operating, or condition reports prepared by, on behalf of, or for the use of an
agency responsible for the regulation or supervision of financial institutions”.

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information may penalize an institution for using the relief provided by the CARES Act. The
agencies have encouraged financial institutions to work with their borrowers during the National
Emergency related to COVID-19, including use of the relief under section 4013.4
The agencies may disclose data on an aggregated basis, consistent with confidentiality.
Time Schedule for Information Collection
The FFIEC 002 and FFIEC 002S are collected as of the end of the last calendar day of
March, June, September, and December. U.S. branches and agencies of foreign banks must
submit the FFIEC 002 and FFIEC 002S to the Federal Reserve Bank in the district in which the
reporting branch or agency is located within 30 calendar days following the report date. After
processing and editing respondent data, the Board sends the data to the FDIC and OCC for their
use in monitoring the U.S. activities of foreign banks under their supervision.
Public Availability of Data
Aggregate data for all U.S. branches and agencies that file the FFIEC 002 are published
in the Federal Reserve Bulletin and are also used in developing flow of funds estimates and the
estimates published in the Federal Reserve weekly H.8 statistical release, Assets and Liabilities
of Commercial Banks in the United States. Aggregate data for the FFIEC 002S are available to
the public upon request.
Individual respondent data, excluding confidential information, are available to the public
from the National Technical Information Service in Springfield, Virginia, upon request. In
addition, individual respondent data are also available on the FFIEC public website at
https://www.ffiec.gov/NPW.
Legal Status
Section 11(a)(2) of the Federal Reserve Act (FRA) authorizes the Board to require
depository institutions to submit reports of their liabilities and assets as the Board may determine
to be necessary or desirable to enable the Board to discharge its responsibility to monitor and
control monetary and credit aggregates (12 U.S.C. § 248(a)(2)). Section 7(c)(2) of the IBA,
provides that Federal branches and agencies of foreign banks are subject to the reporting
requirements in section 11(a) of the FRA “to the same extent and in the same manner as if the
branch or agency were a state member bank” (12 U.S.C. § 3105(c)(2)). Section 7(c)(2) of the
IBA also provides that state-licensed branches and agencies of foreign banks are subject to the
requirement in section 9 of the FRA (12 U.S.C. § 324) that they file reports of condition with the
appropriate Federal Reserve Bank (12 U.S.C. § 3105(c)(2)). In addition, section 4(b) of the IBA
authorizes the OCC to collect such information from Federal branches and agencies of foreign
banks (12 U.S.C. § 3102(b)). The Board, FDIC, and OCC also are authorized to collect reports of
condition from insured branches of foreign banks pursuant to section 7(a) of the Federal Deposit
See “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with
Customers Affected by the Coronavirus (Revised)” (April 7, 2020), available at: https://www.occ.gov/newsissuances/news-releases/2020/nr-ia-2020-50a.pdf.
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Insurance Act (12 U.S.C. § 1817(a)(1) and (3)). The obligation to respond is mandatory for
reporting institutions.
In general, the information collected in the FFIEC 002 report is made available to the
public, except that the data collected from a U.S. branch or agency of a foreign bank in
Schedule M of the FFIEC 002 report is withheld as confidential commercial and financial
information. Schedule M requires respondents to report the amounts due to/due from related
institutions in the U.S. and in foreign countries; however, U.S. banking organizations, which are
direct competitors of the FFIEC 002 respondents, are not required to disclose financial
information involving transactions with related institutions. Accordingly, disclosure of this
confidential financial information on the FFIEC 002 report would put respondents at a distinct
competitive disadvantage relative to their U.S. banking organization counterparts. Schedule M,
therefore, is considered exempt from public disclosure pursuant to exemption 4 of the Freedom
of Information Act (FOIA), which protects “trade secrets and commercial or financial
information obtained from a person and privileged or confidential” (5 U.S.C. § 552(b)(4)).5 If a
respondent believes that disclosure of any of the public portions of its FFIEC 002 report would
be reasonably likely to result in substantial harm to its competitive position under exemption 4 of
the FOIA, the respondent may request confidential treatment for such information as set forth in
the Board’s Rules Regarding the Availability of Information (12 CFR 261.15) and in the
Instructions to the FFIEC 002 report.
The FFIEC 002S report collects data on transactions with all entities, both related and
nonrelated, and similar to Confidential Schedule M of the FFIEC 002 report, also collects data
on the amount due to/from transactions with related institutions (both depository and nondepository). The data collected on the FFIEC 002S report has been deemed confidential since the
inception of the report. The primary rationale for confidential treatment of the FFIEC 002S
report in its entirety is because the report may contain intracompany business information and
because home country data collected on the FFIEC 002S could reveal information about
individual customers. U.S. banking organizations, which are direct competitors of the
FFIEC 002S respondents, are not required to publicly disclose such financial information
involving transactions with related institutions. Accordingly, disclosure of the confidential
financial information submitted on the FFIEC 002S report, would put respondents at a distinct
competitive disadvantage relative to their U.S. banking organization counterparts. The
FFIEC 002S report, therefore, is considered exempt from disclosure in its entirety pursuant to
exemption 4 of the FOIA. Aggregate data from the FFIEC 002S report for multiple respondents,
which does not reveal the identity of any individual respondent, may be released.
Consultation outside the Agency
The Board consulted with the FDIC and OCC concerning the proposed revision of this
report.

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Although Schedule M of the FFIEC 002 report is withheld from the public, the instructions to the FFIEC 002
report indicate that these reports are made available to the relevant state supervisory authority in their entirety.

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Estimate of Respondent Burden
As shown in the table below, the current estimated total annual burdens for the
FFIEC 002 and FFIEC 002S are 20,373 hours and 912 hours respectively. The proposed
revisions would result in an increase of 418 hours for the FFIEC 002, and the burden hours for
the FFIEC 002S would remain unchanged. This burden estimate accounts for all filers of the
FFIEC 002 and FFIEC 002S, including those supervised by the FDIC or OCC. These reporting
requirements represent less than 1 percent of the Board’s total paperwork burden.

FFIEC 002 and FFIEC 002S
Current
FFIEC 002
FFIEC 002S

Estimated
Estimated
Annual
number of
average hours
frequency
respondents6
per response

Estimated
annual burden
hours

209
38

4
4

24.37
6

20,373
912
21,285

209
38

4
4

24.87
6

Proposed Total

20,791
912
21,703

Change

418

Current Total
Proposed
FFIEC 002
FFIEC 002S

The estimated total annual cost to the public for the FFIEC 002 and FFIEC 002S is
$1,229,209 and would increase to $1,253,348 with the proposed revisions.7
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 estimated cost to the Federal Reserve System for collecting and processing the
FFIEC 002 and FFIEC 002S is $62,700. The Federal Reserve System collects and processes the
data for all three of the agencies.

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Of these respondents, 89 for the FFIEC 002 and 11 for the FFIEC 002S are considered small entities as defined by
the Small Business Administration (i.e., entities with less than $600 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 $20, 45% Financial Managers at
$71, 15% Lawyers at $70, 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 2019, published March 31, 2020, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Standard Occupational Classification System, https://www.bls.gov/soc/.

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