FFIEC 002 and FFIEC 002S 18 Question Format OMB Supporting Statement 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)
1.

Explain the circumstances that make the collection of information necessary.

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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2.

Indicate how, by whom, and for what purpose the information is to be used. Except
for a new collection, indicate the actual use the agency has made of the information
received from the current collection.

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.
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.
3.

Describe whether, and to what extent, the collection of information involves the use
of automated, electronic, mechanical, or other technological collection techniques or
other forms of information technology.

All affected institutions must submit their completed reports electronically using the
Federal Reserve’s Reporting Central application.
4.

Describe efforts to identify duplication. Show specifically why any similar
information already available cannot be used or modified for use for the purposes
described in Item 2 above.

The data collected through the FFIEC 002 and 002S are unique and cannot be replaced
by data already collected by the federal government.
5.

If the collection of information impacts small businesses or other small entities,
describe any methods used to minimize burden.

Of the 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. There are
no special accommodations given to mitigate the burden on small entities.

6.

Describe the consequence to Federal program or policy activities if the collection is
not conducted or is conducted less frequently, as well as any technical or legal
obstacles to reducing burden.

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). Less frequent
reporting would diminish the agencies’ capacity to carry out the supervisory and regulatory
responsibilities imposed by the IBA.
7.

Explain any special circumstances that would cause an information collection to be
conducted in a manner inconsistent with 5 CFR 1320.5(d)(2).

This information collection is conducted in a manner consistent with the guidelines in 5
CFR 1320.5(d)(2).
8.

Describe comments in response to the Federal Register notice and efforts to consult
outside the agency.

The Board, FDIC, and OCC coordinated in developing these revisions. The agencies will
follow this request for emergency processing with a request under normal clearance procedures,
during which comments will be solicited for the typical 60 day and 30 day periods. All
comments received on paperwork burden, whether during the 60 day or 30 day comment periods,
will be considered in finalizing the collection.
9.

Explain any decision to provide any payment or gift to respondents, other than
remuneration of contractors or grantees.
There are no payments or gifts provided to respondents.

10.

Describe any assurance of confidentiality provided to respondents and the basis for
the assurance in statute, regulation, or agency policy. If the collection requires a
systems of records notice (SORN) or privacy impact assessment (PIA), those should
be cited and described here.

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)). 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.
11.

Provide additional justification for any questions of a sensitive nature.
There are no questions of a sensitive nature.

12.

Provide estimates of the annual hourly burden of the collection of information.

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
number of
respondents

Estimated
Annual
average hours
frequency
per response

209
38

4
4

24.37
6

20,373
912
21,285

209

4

24.87

20,791

Current Total
Proposed
FFIEC 002

Estimated
annual burden
hours

FFIEC 002S

38

4

6

Proposed Total

912
21,703

Change

418

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.
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/.
13.

Provide an estimate for the total annual cost burden to respondents or record
keepers resulting from the collection of information.
There are no annualized costs to the respondents.

14.

Provide estimates of annualized costs to the Federal government.

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.
15.

Explain the reasons for any program changes or adjustments reported on the
burden worksheet.

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
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
3

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”.

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
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
16.

Provide information regarding plans for publication 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.
17.

If seeking approval to not display the expiration date for OMB approval of the
information collection, explain the reasons that display would be inappropriate.
No such approval is sought.

18.

Explain each exception to the topics of the certification statement identified in
“Certification for Paperwork Reduction Act Submissions.”
There are no exceptions.

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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