Quarterly Report of Assets and Liabilities of Large Foreign Offices of U.S. Banks

INSTRUCTIONS FOR PREPARATION OF

Quarterly Report of Assets and Liabilities
of Large Foreign Offices of U.S. Banks
FR 2502q

Part I–General Instructions
A. Introduction
This report obtains data on the geographical distribution of the assets and liabilities of large foreign
branches and subsidiaries of U.S. commercial banks
and of Edge and agreement corporations (“banks”).
All assets and liabilities are to be reported gross, except
where otherwise noted in these instructions, in U.S.
dollar equivalents as shown on the books of the reporting branch or subsidiary, not on the books of the “parent bank.” The reporting standards for this report
should be the same as those for the Consolidated
Reports of Condition and Income (FFIEC 031) unless
explicitly stated otherwise in these instructions.

B. Who Files Reports
U.S. bank holding companies, including financial
holding companies, commercial banks and banking
Edge and agreement corporations file quarterly reports
for certain branches and subsidiaries located outside
the United States, excluding branches on U.S. military
facilities wherever located.

C. For Which Offices Reports Are Filed
Reports are to be filed for all branches and subsidiaries
that are located in the United Kingdom or the Caribbean (listed below), that are not located in a U.S. military facility, and that meet the following criteria:
• branches filing the Foreign Branch Report of Condition (FFIEC 030) whose total assets, item 11,
amount to $2 billion or more on a report date,
• subsidiaries filing the quarterly Financial Statements
of Foreign Subsidiaries of U.S. Banking Organizations (FR 2314) that have a banking charter and
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engage in banking business, and that report $2 billion or more in total assets in Schedule BS, item 10,
and $10 million or more in total deposits in Schedule BS-M, item 6.
An office is located in the Caribbean if it is located in
any of the following: Anguilla, Antigua and Barbuda,
Aruba, Bahamas, Barbados, Bermuda, Bonaire, British Virgin Islands, Cayman Islands, Cuba, Curacao,
Dominica, Dominican Republic, Grenada, Guadeloupe (including Marie-Galante, La Desirade, Iles des
Saintes, St. Barthelemy, and northern St. Martin),
Haiti, Jamaica, Martinique, Montserrat, Saba, St.
Eustatius, St. Kitts and Nevis, St. Lucia, St. Maarten,
St. Vincent and the Grenadines, Trinidad and Tobago,
and the Turks and Caicos Islands.
Reports need not be filed for offices that are not
located in the United Kingdom or the Caribbean.
A reporter should begin filing the report for a branch
or subsidiary as of the report date (i.e., quarter-end) on
which the branch or subsidiary meets the criteria specified above. Once a report has been filed for a branch or
subsidiary, reports should continue to be filed for that
branch or subsidiary for each remaining quarter in the
calendar year regardless of whether the amount falls
below the reporting threshold on subsequent report
dates during the calendar year. A branch or subsidiary
that is above the reporting threshold as of the end of
December should report for the following calendar
year.
The total assets test defined above applies to the total
of the foreign branch’s or subsidiary’s international
and local assets, regardless of the currency in which the
assets are payable. The test does not apply separately to
off-shore banking units, foreign currency units, or any
other administrative division within a branch or subsidiary. Similarly, the assets and liabilities reported
should be those of the entire branch or subsidiary and
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those not booked only in an administrative or regulatory subdivision of the branch or subsidiary.
As an alternative to filing separate reports for several
individual branches in the same country or dependency, a bank may choose to file a consolidated report
for all of its branches in a single country (or dependency) as long as the report is filed on schedule with
the Federal Reserve Bank. Under this alternative all
branches in that country must be included in the consolidated report, regardless of their individual sizes;
and the number of branches in the country must be
indicated in the appropriate place on the report.
Changes in this reporting procedure—for example,
changing from individual reports to a single consolidated report for all branches in the same country (and
vice versa)—may be made only in the first quarter of a
calendar year and must be approved by the Federal
Reserve Bank with whom the reports are filed. When a
bank has had a single branch in a country and that
branch has been preparing a FR 2502q report, a de
novo second branch of the parent bank may, without
prior approval, file on a consolidated basis with the
first branch provided that consolidated reports are
begun as of the first reporting date after the second
branch opens.
Similarly, a reporter may choose to file a consolidated
report for all of its subsidiaries in a single country,
under the same terms stipulated above for branches.
Whether a reporter files separate reports for its subsidiaries in a given country or consolidates subsidiaries’
data into a single report, the data filed for subsidiaries
should be parent only (non-consolidated), as on the
FR 2314 report.
Branches and subsidiaries, however, may not be consolidated on one report, regardless of where they are
located.
In reporting, a branch or subsidiary may elect to omit
claims on and liabilities to residents of the United
States if both total claims on and total liabilities to
addressees in the United States are less than $1 million
(equivalent).
Amounts reported should be rounded to the nearest
million dollars.
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D. Report Date
Reports are to be prepared as of the close of business
on the last business day of the calendar quarter in the
country (or dependency) in which the branch or subsidiary is located.

E. When and Where Reports Are Filed
U.S. bank holding companies, including financial
holding companies, commercial banks, and banking
Edge and agreement corporations should file the
reports required for its branches and subsidiaries with
the Federal Reserve Bank of the District in which the
head office is located, on the schedule stipulated by the
Reserve Bank.

F. Method of Submitting Data to Federal
Reserve Bank
All holding companies must submit their completed
reports electronically. Holding companies should contact their district Reserve Bank or go to https://
www.frbservices.org/central-bank/reporting-central/
index.html for procedures for electronic submission.

G. Determination of Country of Customer
Assets and liabilities in the row for the United States
should be reported if the United States is the country
of the principal address of the customer (i.e. depositor,
creditor, borrower, obligor, etc.). If the principal
address is unclear, the branch or subsidiary may use as
the principal address that address to which statements
of the customer’s account (or receipted notes) are sent.
However the address of a bank “shell” branch is the
country (or dependency) in which the branch is
authorized to operate, even though statements may be
sent to the head office in a different country. Care
should be taken to ensure that accounts of foreign
branches or subsidiaries of U.S. corporations are not
reported as U.S. accounts, and that accounts of U.S.
branches or subsidiaries of foreign corporations are
reported as U.S. accounts, (that is, that domicile and
not ownership determine the identification of the
country of customer). U.S. accounts are those of customers domiciled in the fifty states, the District of
Columbia, and on U.S. military facilities wherever
located. All other persons or corporations are non-U.S.
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addressees, which includes foreign governments and
any of its subdivisions or agencies, including all foreign
official non-banking institutions, even if located in the
U.S. (for example, an embassy of a foreign country).
Securities and other assets, as well as claims and liabilities resulting from the fair value of derivatives contracts, should be reported according to the principal
address of the obligor, not the address of a guarantor
or parent company (i.e., do not report positions on an
ultimate risk basis).
However, if the branch or subsidiary files regular
reports with the authorities of its country (or dependency) of domicile which use a different basis than the
above for determining the country of customer, the
branch or subsidiary may employ that basis in completing this report but should note differences in this
regard by indicating such on the report form.
The liability for the permanent investment of the parent bank in the branch should be shown as a liability to
the United States. Assets and liabilities in accounts
with customers in Puerto Rico and U.S. dependencies
should not be reported on the line for the United
States.

H. Valuation
Assets and liabilities should be valued using U.S.
GAAP. Assets or liabilities payable in foreign currencies should be converted into U.S. dollars at the
exchange rate prevailing on the report date.

I. Total Assets Must Equal Total Liabilities
Components of column totals and subtotals must sum
to their respective total or subtotal. Moreover, total
assets must equal total liabilities (country code 99996).

J. Negative Numbers
All amounts should be reported as positive balances.
Items such as 1) undivided profits or accumulated
operation losses, and 2) unremitted foreign currency
translation adjustments should be reported as positive
amounts due to or due from the parent.

Part II–Specific Item Instructions
Memoranda
Item 1 Amounts included in “UNITED STATES”
above (country code 01007) for claims on, and liabilities
to, U.S. addressees as follows:
Do not include negotiable CDs; they are reported in
“TOTAL, all areas” (country code 99996) in the body
of the report.
The term “United States” (U.S.) includes the fifty
states, the District of Columbia, and U.S. military
facilities wherever located. The term “U.S. addressee”
includes any person or corporation whose principal
address (i.e., domicile), according to the records of the
reporting branch, is in the United States. (See Section
G of General Instructions.)

Claims and liabilities resulting from the fair value of
derivatives contracts items should be reported on a
gross basis, except such contracts with the same counterparty that meet the criteria for a valid right of setoff
contained in ASC Subtopic 210-20, Balance Sheet–
Offsetting (formerly FASB Interpretation Number 39).
Foreign currency translations should be reported net.

Item 1.a Claims on, and liabilities to, U.S. parent bank
(as defined below).
Include as assets all advances to the U.S. parent bank,
balances due from the parent bank, and acceptances
created for the parent bank as well as all loans, securities, or other assets purchased from the U.S. parent
bank under a specific repurchase agreement. Exclude
all assets acquired from the parent bank without repurchase agreements.

Claims and liabilities resulting from securities purchased and sold under resale and repurchase agreements can be netted if they meet the requirements outlined in ASC Subtopic 210-20, Balance Sheet–
Offsetting (formerly FASB Interpretation Number 41).

Include as liabilities advances from the U.S. parent
bank or balances due to the parent bank, including the
liability of the branch or subsidiary to the parent bank
resulting from acceptances confirmed, endorsed, or
created by the parent bank for the branch or subsidiary. If this report is being filed for a branch or

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branches, also include as a liability the permanent
investment of the parent bank in the branch(es). If this
report is being filed for a subsidiary or subsidiaries,
include subsidiary equity in this item.
Unremitted profits/losses are balances due to or due
from the parent bank and should be reported as assets
(for net losses) or liabilities (for net profits).
Parent bank. The term “parent bank” includes all U.S.
offices and branches of the “bank” of which the
reporting branch or subsidiary is a part. It includes the
parent bank’s International Banking Facility. In addition, it includes such bank’s Edge and agreement subsidiaries and other subsidiaries in the fifty states and
the District of Columbia that are consolidated with the
parent bank for purposes of reporting on the
FFIEC 031. Branches at U.S. military facilities wherever located are also to be included with the parent
bank. “Parent bank” excludes the bank holding company owning the bank filing these reports and other
U.S. subsidiaries, branches or agencies of that holding
company, unless they are consolidated with the bank
when it files condition reports with banking authorities
in the United States. If the bank holding company is
not consolidated, it is reported in memorandum
Item 1.c., “U.S. addressees other than depository institutions.” Trust departments are to be excluded from
the parent bank and included in “U.S. addressees other
than depository institutions.”
Item 1.b Claims on, and liabilities to, other depository
institutions in the United States.
Report claims on, and liabilities, other than negotiable
CDs, to other depository institutions in the United
States.
Other depository institutions in the United States. The
term “other depository institutions in the United
States” (i.e., other than the parent bank) includes commercial banks, unaffiliated Edge and agreement corporations, branches and agencies of foreign banks, building or savings and loan associations, mutual or stock
savings banks, cooperative banks, credit unions, and
homestead associations, located in the fifty states of
the United States, the District of Columbia, and on
U.S. military facilities wherever located. This term also

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includes International Banking Facilities of the abovementioned institutions. It excludes trust departments
(included in item 1.c. below), all banking offices in
Puerto Rico and U.S. territories and possessions, and
U.S. government and international financial
institutions.
Item 1.c Claims on, and liabilities to, U.S. addressees
other than depository institutions.
Report claims on, and liabilities, other than negotiable
CDs, to U.S. addressees other than the parent bank
and other depository institutions. Include balances of
trust departments. Include balances of the parent
bank’s holding company, if not consolidated and
reported in Item 1.a. above. Note: The amounts
reported for “UNITED STATES” (country code
01007) must equal the sum of memorandum items 1.a.,
1.b., and 1.c.
Item 2 Amounts included in “TOTAL, all areas”
above (country code 99996) that represent claims and
liabilities from the fair value of derivatives contracts, if
any.
Report the claims and liabilities reported anywhere on
this form that are attributable to the fair value of
derivatives contracts, if any.
Item 3 Amounts included in “TOTAL, all areas”
above (country code 99996) that represent claims on,
and liabilities to, other non-U.S. offices of the parent
bank.
Report claims on, and liabilities to, other non-U.S.
branches or subsidiaries of the parent bank that are
located either within or outside the country of domicile of the reporting branch or subsidiary. Include such
claims and liabilities whether or not the particular
branches or subsidiaries against which the claims and
liabilities exist are exempt from reporting on the
FR 2502q. Non-U.S. branches or subsidiaries are
those located outside the fifty states of the United
States and the District of Columbia, excluding those
on U.S. military facilities, wherever located. Note: The
amounts reported in memorandum item 3 must not
exceed the amounts reported in “TOTAL, all areas,”
(country code 99996).

FR 2502q