FRY7N_FRY7NS_20201231_i_draft

INSTRUCTIONS FOR PREPARATION OF

Financial Statements of U.S. Nonbank
Subsidiaries Held by Foreign Banking
Organizations
FR Y-7N and FR Y-7 NS

Who Must Report

Once a nonbank subsidiary satisfies the criteria to file
the FR Y-7N for any quarter during the calendar year,
the nonbank subsidiary must continue to file the quarterly FR Y-7N for the remainder of the calendar year
even if it no longer satisfies the requirement for filing
the quarterly FR Y-7N.

AF

The Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations (FR Y-7N/
FR Y-7NS) must be filed either quarterly or annually
by the top-tier foreign banking organization (FBO) for
each U.S. nonbank subsidiary1 it owns or controls.

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(2) The nonbank subsidiary’s off-balance-sheet
activities2 are equal to or greater than $5 billion.

General Instructions

The FR Y-7N/FR Y-7NS must be submitted for each
legal entity subject to reporting requirements. Therefore, consolidation of individual entities is not
permitted.

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For purposes of this report, nonbank subsidiaries
include, but are not limited to, commercial or consumer finance companies, leasing companies, mortgage banking companies, venture capital corporations,
small business investment companies, and data processing and information services companies that do
not have a primary U.S. regulator other than the Federal Reserve System.
See Insert 1
3

Quarterly Filers—Detailed Report
(FR Y-7N)

Each top-tier FBO must file the FR Y-7N report on a
quarterly basis for each of its U.S. nonbank subsidiaries that meets any one of the following criteria:

(1) The total assets of the nonbank subsidiary are
equal to or greater than $1 billion; or

1. A subsidiary, for purposes of this report, is defined by Section 225.2 of Federal Reserve Regulation Y, which generally includes
companies 25 percent or more owned or controlled by another company.

FR Y-7N and FR Y-7 NS

Nonbank subsidiaries that do not meet the quarterly
filing thresholds may be requested to file quarterly if
the Federal Reserve Bank has determined that these
nonbank subsidiaries have significant risk exposures.
4

Annual Filers—Detailed Report
(FR Y-7N)
A nonbank subsidiary that does not meet any of the
criteria to file quarterly, but has total assets greater
than or equal to $500 million and less than $1 billion as
of the report date must file the entire FR Y-7N report
on an annual basis.
5

Annual Filers—Abbreviated Report
(FR Y-7NS)
A nonbank subsidiary that does not meet the criteria
to file the detailed report, but has total assets greater
than or equal to $250 million and less than $500 million must file the Abbreviated Financial Statements of
U.S. Nonbank Subsidiaries Held by Foreign Banking
Organizations (FR Y-7NS) on an annual basis.
2. Off-balance-sheet activities (defined as the sum of Schedule BS,
items 20 through 30) include commitments to purchase foreign currencies and U.S. dollar exchange, all other futures and forward contracts,
option contracts, and the notional value of interest rate swaps, exchange
swaps, and other swaps.

GEN-1

December 2013

Insert 1

3

For report dates through December 31, 2021, quarterly filing not required if
nonbank subsidiary has total assets less than $1 billion using the lesser of normal
reporting applicability measurement date or 12/31/2019 as-of-date and does not
meet any of other criteria to file quarterly.
4

For report dates through December 31, 2021, annual filing not required if
nonbank subsidiary total assets was not greater than $500 million and less than
$1 billion using the lesser of normal reporting applicability measurement date or
12/31/2019 as-of-date and does not meet any of other criteria to file quarterly.

5

D
R

AF

T

For report dates through December 31, 2021, annual filing (abbreviated report)
not required if nonbank subsidiary total assets was not greater than $250 million
and less than $500 million using the lesser of normal reporting applicability
measurement date or 12/31/2019 as-of-date and does not meet any of other
criteria to file quarterly.