FRY11_FRY11S_20201231_i_draft

INSTRUCTIONS FOR PREPARATION OF

Financial Statements of U.S. Nonbank
Subsidiaries of U.S. Holding Companies
FR Y-11 and FR Y-11S

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The Financial Statements of U.S. Nonbank Subsidiaries
of U.S. Holding Companies (FR Y-11/FR Y-11S) must
be filed either quarterly or annually by the top-tier
holding company for each individual nonbank subsidiary1 that it owns or controls.

domiciled in the United States,2 (except subsidiaries that
are functionally regulated as discussed in the exemptions
section below.) Refer to the FR Y-9C Glossary entry for
‘‘Domicile’’ for guidance in determining domicile.

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GENERAL INSTRUCTIONS
Who Must Report

For purposes of this report, holding company is collectively used for bank holding company, U.S. intermediate
holding company, savings and loan holding company,
and securities holding company.

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The FR Y-11/FR Y-11S must be submitted for each legal
entity subject to reporting requirements. Therefore, consolidation of individual entities is not permitted.

For purposes of this report, nonbank subsidiaries include,
but are not limited to, commercial finance companies,
leasing companies, mortgage banking companies, consumer finance companies, venture capital corporations,
small business investment companies, and data processing and information services companies (also see exemptions).
Also for purposes of this report, a subsidiary includes any
organization in which shares have been acquired, directly
or indirectly, by a financial holding company under
Section 4(k)(4) of the Bank Holding Company Act of
1956 (BHC Act), as amended by the Gramm−Leach−Bliley Act for bank holding companies or Section 10(c)(2)(H)
of the HOLA for savings and loan holding companies,

1. For purposes of this report, the term subsidiary for bank holding
companies, 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 and for savings and loan holding companies
the term subsidiary, is defined by Section 238.2 of Federal Reserve
Regulation LL, which generally includes companies more than 25 percent
owned or controlled by another company.
FR Y-11 and FR Y-11S
General Instructions September 2016

Quarterly Filers-Detailed Report
(FR Y-11)

A top-tier holding company must file the FR Y-11
quarterly for each nonbank subsidiary that it owns and
controls if the top-tier holding company has total consolidated assets of $500 million or more as of June 30 of the
preceding year or files the FR Y-9C to meet supervisory
needs and the subsidiary meets any one of the following
criteria:
(1) The total assets of the nonbank subsidiary are equal
to or greater than $1 billion;
(2) The nonbank subsidiary’s off-balance-sheet activities3 are equal to or greater than $5 billion;
(3) The nonbank subsidiary’s equity capital is equal to or
greater than 5 percent of the top-tier holding company’s consolidated equity capital; or
(4) The nonbank subsidiary’s consolidated operating revenue is equal to or greater than 5 percent of the
top-tier holding company’s consolidated operating
revenue.
2. Any such organization domiciled outside the United States should
file either the Financial Statements of Foreign Subsidiaries of U.S. Banking
Organizations (FR 2314) or the Abbreviated Financial Statements of
Foreign Subsidiaries of U.S. Banking Organizations (FR 2314S) pursuant
to the reporting threshold requirements for those reports.
3. 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.

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General Instructions

Operating revenue is defined as the sum of total interest
income and total noninterest income (before deduction of
expenses).

ments of U.S. Nonbank Subsidiaries of U.S. Holding
Companies (FR Y-11S) on an annual basis.

For nonbank subsidiaries held by a holding company in
the United States that is, in turn, owned by a foreign
banking organization (FBO), the operating revenue and
equity capital of the U.S. holding company are used as
the top-tier organization’s values.

Other Reporting Criteria

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• Consolidation of individual entities, including variable
interest entities (VIEs), is not permitted. Each holding
company should separately assess whether a VIE meets
the definition of subsidiary and determine if any such
entity meets the criteria for filing this report.

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If a nonbank subsidiary meets the criteria above to file
quarterly as of June 30 of the preceding year, the holding
company must file the FR Y-11 quarterly for the subsidiary beginning in March of the current year. In addition,
if the subsidiary meets the quarterly criteria due to being
newly formed or a business combination, then the holding company must report the FR Y-11 quarterly beginning with the first quarterly report date following the
effective date of the inception of the subsidiary or
business combination, respectively.

• Each holding company must submit a separate FR Y11/FR Y-11S for each of its nonbank subsidiaries
satisfying the above criteria whether directly or indirectly owned. Each holding company must submit a
report on a parent only (non-consolidated) basis for
each parent nonbank subsidiary meeting the criteria
and submit individual reports for each lower level
nonbank subsidiary required to file the report.

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Once a nonbank subsidiary begins filing the FR Y-11
quarterly, it should file a complete FR Y-11 quarterly
report going forward. If the holding company has total
consolidated assets of $500 million or more as of June 30
of the preceding year or files the FR Y-9C to meet
supervisory needs and the subsidiary does not meet any
one of the other quarterly nonbank subsidiary filing
criteria for four consecutive quarters, then the holding
company may revert to annual filing beginning with the
first upcoming December report date.

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 subsidiaries have significant risk exposures.
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Annual Filers-Detailed Report (FR Y-11)

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-11 report on an
annual basis.
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Annual Filers-Abbreviated Report
(FR Y-11S)
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 as of the
report date must file the Abbreviated Financial StateGEN-2

• The FR Y-11/FR Y-11S report for a nonbank subsidiary owned by more than one holding company should
be submitted in its entirety by the holding company
with the majority ownership. If a nonbank subsidiary is
equally owned by two or more holding companies, the
FR Y-11/FR Y-11S report should be submitted in its
entirety by the largest holding company based on total
consolidated assets.

Exemptions from Reporting Nonbank
Subsidiary Financial Statements
The following subsidiaries are exempt from submitting
the financial statements of nonbank subsidiaries of holding companies:
• Any nonbank subsidiary with less than $250 million
in total assets unless the quarterly reporting criteria is
met;
• Any nonbank subsidiary in which the primary regulator, or ‘‘functional regulator,’’ is an organization other
than the Federal Reserve System, such as the Securities
and Exchange Commission, Commodity Futures Trading Commission, State Insurance Commissioners, or
State Securities departments;
• Any subsidiary that is required to file a Report of
Condition for Edge or Agreement Corporations
(FR 2886b);
• Any subsidiary, joint venture, or portfolio investment
that is required to file the Financial Statements of
FR Y-11 and FR Y-11S
General Instructions March 2018

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For report dates through December 31, 2021, quarterly filing not required if
nonbank subsidiary has total assets of at least $500 million but 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.
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For report dates through December 31, 2021, annual filing not required if
nonbank subsidiary has total assets 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.
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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.