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).
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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.2 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 agencies propose to revise the FFIEC 002 effective beginning with reports for the
September 30, 2020, report date. The proposed revision would collect data that would support
the implementation of a final rule adopted by the FDIC on June 22, 2020, amending its deposit
insurance assessment regulations in response to economic disruptions related to the coronavirus
disease 2019 (COVID-19).3 There are no proposed revisions to the FFIEC 002S at this time.
“Branch” means any office or any place of business of a foreign bank located in any State of the United States at
which deposits are received (12 U.S.C. § 3101(3)). “Agency” means any office or any place of business of a foreign
bank located in any State of the United States at which credit balances are maintained incidental to or arising out of
the exercise of banking powers, checks are paid, or money is lent but at which deposits may not be accepted from
citizens or residents of the United States (12 U.S.C. § 3101(1)).
2
“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.
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85 FR 38282 (June 26, 2020).
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The current estimated total annual burdens for the FFIEC 002 and FFIEC 002S are 20,791
hours and 912 hours, respectively. The estimated total annual burdens for the FFIEC 002 and
the FFIEC 002S would remain unchanged with the proposed revision. The forms and
instructions are available on the FFIEC’s public website at
https://www.ffiec.gov/ffiec_report_forms.htm.
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
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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
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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 burden hours for the
FFIEC 002 and FFIEC 002S are 20,791 hours and 912 hours, respectively. The estimated total
annual burden hours for the FFIEC 002 would remain unchanged with the proposed revision
due to adding the collection of the outstanding balance of PPP loans at quarter-end and
discontinuing the collection of the quarterly average amount of loans pledged to the PPPLF,
which will result in a net zero change in burden. Because there are no proposed revisions to
the FFIEC 002S at this time, the estimated total annual burden hours for the FFIEC 002S also
would remain unchanged. These burden estimates account 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.

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FFIEC 002 and FFIEC 002S
FFIEC 002
FFIEC 002S

Estimated
Annual
number of
frequency
respondents4
209
4
38
4

Estimated
average hours
per response
24.87
6

Total

Estimated
annual burden
hours
20,791
912
21,703

The estimated total annual cost to the public for the FFIEC 002 and FFIEC 002S is
$1,253,348.
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 September 30, 2020, report date. The
agencies have determined that the request meets the emergency processing requirements set
forth in 5 CFR 1320.13. Specifically, (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.

4

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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Recent events have suddenly and significantly impacted financial markets. The spread
of the 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. The agencies request emergency
processing of the proposed revision discussed below because it is essential for the agencies to
collect information that would allow the agencies to calculate assessment amounts for deposit
insurance in light of recent amendments to the FDIC’s rule regarding deposit insurance
assessments, which were immediately effective and were meant to more fully mitigate the
deposit insurance assessment of participation in the Paycheck Protection Program and
minimize additional reporting burden from the economic impacts of the unanticipated COVID19 pandemic.
Pursuant to Section 7 of the Federal Deposit Insurance Act, the FDIC has established a
risk-based assessment system through which it charges all IDIs an assessment amount for
deposit insurance. On May 12, 2020, the FDIC approved a proposed rule modifying its deposit
insurance assessment rules to mitigate the effects of participation in the Paycheck Protection
Program (PPP), the PPP Liquidity Facility (PPPLF), and the Money Market Mutual Fund
Liquidity Facility (MMLF) on Insured Depository Institutions (IDIs), including insured U.S.
branches of foreign banks.5 Among other changes in the FDIC’s assessment rules, the proposal
would have provided an offset to an IDI’s assessment amount for the increase to its assessment
base attributable to participation in the PPPLF and the MMLF. The Board, on behalf of the
three federal banking agencies, requested and received emergency approval on May 27, 2020,
from OMB to implement revisions to the FFIEC 002 beginning as of the June 30, 2020, report
date. More specifically, the Board received approval to collect two additional items from
insured U.S. branches of foreign banks on the FFIEC 002: the quarterly average amount of
PPP loans pledged to the PPPLF and the quarterly average amount of assets purchased from
money market mutual funds under the MMLF in Schedule O, Memorandum items 6 and 7,
respectively. On June 22, 2020, the FDIC adopted a final rule amending its deposit insurance
assessment rules to mitigate the effects of participation in the PPP, the PPPLF, and the MMLF
on IDIs, including insured U.S. branches of foreign banks.6 The final rule is effective June 26,
2020, and will apply as of April 1, 2020.
As a consequence of the change the FDIC made in its final rule to mitigate the effect of
an IDI’s participation in the PPP, the Board, on behalf of the agencies, requests emergency
clearance from OMB to permit the revision of the PPP information reported by insured U.S.
branches of foreign banks in Schedule O, Memorandum item 6, of the FFIEC 002 beginning
with the September 30, 2020, report date. The Board would discontinue the previously approved
reporting by insured U.S. branches of the quarterly average amount of loans pledged to the
PPPLF effective as of that report date and instead such branches would begin to report the

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6

https://www.fdic.gov/news/press-releases/2020/pr20059.html; see also 85 FR 30649 (May 20, 2020).
https://www.fdic.gov/news/press-releases/2020/pr20071.html; see also 85 FR 38282 (June 26, 2020).

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outstanding balance of PPP loans at quarter-end.7 The collection of this revised item would be
time-limited. The Board, on behalf of the agencies, would expect to propose to discontinue the
collection of this item once individual branch information is no longer needed for deposit
insurance assessment purposes.
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.

Section 327.17(d)(1)(ii) of the FDIC’s assessment regulations, as added by the FDIC’s final rule, provides that
“[t]o the extent that an institution does not report the outstanding balance of loans provided under the Paycheck
Protection Program, such as in an insured branch’s Report of Assets and Liabilities of U.S. Branches and Agencies
of Foreign Banks, the FDIC will take the sum of either the quarterly average amount of loans pledged to the
Paycheck Protection Program Liquidity Facility as reported in the Report of Assets and Liabilities of U.S. Branches
and Agencies of Foreign Banks, or the outstanding balance of loans provided under the Paycheck Protection
Program, as such certified data is provided to the FDIC.” See 85 FR 38282, 38294.
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