FR2502q_20210615_omb

Supporting Statement for the
Quarterly Report of Assets and Liabilities of Large Foreign Offices of U.S. Banks
(FR 2502q; OMB No. 7100-0079)
Summary
The Board of Governors of the Federal Reserve System (Board), under authority
delegated by the Office of Management and Budget (OMB), has extend for three years, without
revision, the Quarterly Report of Assets and Liabilities of Large Foreign Offices of U.S. Banks
(FR 2502q; OMB No. 7100-0079). U.S. commercial banks, bank holding companies, including
financial holding companies, and Edge Act and agreement corporations (U.S. banks) are required
to file the FR 2502q reporting form for their large branches and banking subsidiaries that are
located in the United Kingdom or the Caribbean.
The estimated total annual burden for the FR 2502q is 92 hours. The form and
instructions are available on the Board’s public website at
https://www.federalreserve.gov/apps/reportforms/default.aspx.
Background and Justification
The FR 2502q collects, for each reporting office, claims on and liabilities to residents of
the United States and of all countries as of each quarter-end. The Board, along with other
agencies, has an interest in knowing the amounts of the claims and liabilities of U.S.-chartered
banks with respect to residents of individual countries.
In recent years, the FR 2502q was revised to drop all country detail except for claims on
and liabilities to U.S. residents. The FR 2502q continues to provide data about the nature and
scope of activities in foreign offices by location and type of office that are unavailable from other
reporting forms. For example, because banks’ submissions that underlie the quarterly Federal
Financial Institutions Examination Council (FFIEC) Country Exposure Report (FFIEC 009;
OMB No. 7100-0035) are consolidated on a worldwide basis, they do not indicate which
particular offices are involved in lending to or borrowing from U.S. or foreign residents.
In addition, the Bureau for Economic Analysis (BEA), an agency of the Department of
Commerce, uses FR 2502q data from the Memoranda section on branches of U.S. banks in the
Bahamas and the Cayman Islands. Together with data from 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), the data are used in its estimates of the
U.S. International Transactions Accounts and the International Investment Position . Other
sources of data that could be used in these estimates are available only with a lag of several
months. The Board uses memoranda item 1.c, Claims on, and liabilities to, U.S. addressees other
than depository institutions, as input to the Financial Accounts of the United States.

Description of Information Collection
The FR 2502q collects data quarterly on the geographic distribution of the assets and
liabilities of large U.K. or Caribbean branches and subsidiaries of U.S. commercial banks, bank
holding companies (including financial holding companies), and Edge Act and agreement
corporations. Detail on geography is limited to breaking out claims on and liabilities to U.S.
residents from total claims and liabilities. Additional details are collected about positions vis-àvis U.S. residents—specifically, whether the counterparty is the parent bank, another U.S.
depository institution, or another type of counterparty. Positions vis-à-vis other non-U.S. offices
of the parent bank and positions arising from derivatives contracts are also broken out. FR 2502q
respondents must submit the report electronically or submit paper reports to their respective
Reserve Bank each quarter no later than the reporting deadline.
Respondent Panel
The FR 2502q panel comprises U.S. commercial banks, bank holding companies, and
Edge Act and agreement corporations. These institutions are required to file the FR 2502q for
their large foreign branches and large banking subsidiaries that are located in the Ca ribbean or
the United Kingdom. Large foreign branches are currently defined as those that file the Foreign
Branch Report of Condition (FFIEC 030; OMB No. 7100-0071) with total assets, Schedule BS,
item 11, of $2 billion or more. Large banking subsidiaries are defined as those that file the
Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations (FR 2314; OMB
No. 7100-0073) quarterly, have a banking charter, and have assets of $2 billion or more and
deposits of $10 million or more, Schedule BS, item 10, and Schedule BS-M, item 6, respectively.
Time Schedule for Information Collection
Respondents file the FR 2502q reporting form quarterly, as of the last business day of
March, June, September, and December.
Public Availability of Data
No data collected pursuant to this information collection is made available to the public
by the Board.
Legal Status
The Board is authorized to collect the information in the FR 2502q from (1) bank holding
companies pursuant to section 5 of the Bank Holding Company Act of 1956 (12 U.S.C. §
1844(c)), which authorizes the Board to require a bank holding company and any subsidiary to
submit reports, (2) Edge Act and agreement corporations pursuant to sections 25(4) and 25A(17)
of the Federal Reserve Act (FRA) (12 U.S.C. §§ 602 and 625), which authorize the Board to
require Edge and agreement corporations to make reports to the Board, and (3) depository
institutions pursuant to sections 11(a)(1) and (2) of the FRA (12 U.S.C. § 248(a)(1) and (2)),
which authorize the Board to require reports from each member bank as it may deem necessary
and to require reports of liabilities and assets from insured depository institutions to enable the
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Board to discharge its responsibility to monitor and control monetary and credit aggregates. The
FR 2502q report is mandatory.
To the extent that the information from this collection obtained by the Board constitutes
nonpublic commercial or financial information, which is both customarily and actually treated as
private by the financial institution, the financial institution may request confidential treatment
pursuant to exemption 4 of the Freedom of Information Act (5 U.S.C. § 552(b)(4)).
Consultation Outside the Agency
There has been no consultation outside the Federal Reserve System.
Public Comments
On February 3, 2021, the Board published an initial notice in the Federal Register
(86 FR 8014) requesting public comment for 60 days on the extension, without revision, of the
FR 2502q. The comment period for this notice expired on April 5, 2021. The Board received one
comment on the proposal from the U.S. Department of Commerce Bureau of Economic Analysis
(BEA). BEA was in strong support of the continued collection of the FR 2502q data. The Board
adopted the extension, without revision of the FR 2502q as originally proposed. On May 5, 2021,
the Board published a final notice in the Federal Register (86 FR 23971).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR 2502q is 92
hours. The number of respondents is based on quarterly filing data as of June 2020. The
estimated average hours per response, which is the same for data that are submitted on an
individual and a consolidated basis, is currently 1 hour. These reporting requirements represent
less than 1 percent of the Board’s total paperwork burden.

FR 2502q
Current

Estimated
Estimated
Estimated
Annual
number of
average hours annual burden
frequency
respondents1
per response
hours
23
4
1
92

The estimated total annual cost to the public for the FR 2502q is $5,442.2

1

Of these respondents, none 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.
2
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% Financ ial Managers at
$73, 15% Lawyers at $72, and 10% Chief Executives at $95). 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 2020, published March 31, 2021, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Standard Occupational Classification System, https://www.bls.gov/soc/.

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Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
The estimated cost to the Federal Reserve System for collecting and processing this
report is $43,000.

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