FRY8_20220326_omb

Supporting Statement for the
Holding Company Report of Insured Depository Institutions’
Section 23A Transactions with Affiliates
(FR Y-8; OMB No. 7100-0126)
Summary
The Board of Governors of the Federal Reserve System (Board), under authority
delegated by the Office of Management and Budget (OMB), has extended for three years,
without revision, the Holding Company Report of Insured Depository Institutions’ Section 23A
Transactions with Affiliates (FR Y-8; OMB No. 7100-0126). This reporting form collects
information on covered transactions between an insured depository institution and its affiliates
that are subject to the quantitative limits and other requirements of section 23A of the Federal
Reserve Act (12 U.S.C. § 371c) and the Board’s Regulation W - Transactions Between Member
Banks and Their Affiliates (12 CFR Part 223). The FR Y-8 is filed quarterly by all U.S. top-tier
bank holding companies (BHCs), intermediate holding companies (IHCs), and savings and loan
holding companies (SLHCs); and by foreign banking organizations (FBOs) that directly own or
control a U.S. subsidiary insured depository institution (collectively, holding companies). If an
FBO indirectly controls a U.S. insured depository institution through a domestic U.S. holding
company, the domestic U.S. holding company must file the FR Y-8. A respondent must file a
separate FR Y-8 report for each U.S. insured depository institution it controls. If an insured
depository institution does not conduct any section 23A covered transactions with an affiliate in
a particular quarter, its parent holding company is not required to submit an FR Y-8 report for
that quarter with respect to that subsidiary.
The estimated total annual burden for the FR Y-8 is 21,590 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
Section 23A of the Federal Reserve Act is a statutory provision designed to protect a
depository institution from suffering losses in transactions with affiliates. Section 23A, which is
implemented by Regulation W, also limits the ability of a depository institution to transfer to its
affiliates the subsidy arising from the institution’s access to the federal safety net.
The FR Y-8 report collects information from holding companies in order to monitor
covered transactions between a subsidiary depository institution and its parent holding company
or other affiliates. The data collected by the FR Y-8 is used to monitor bank exposures to
affiliates and to assess insured depository institutions’ compliance with section 23A of the
Federal Reserve Act and the Board’s Regulation W. This information collected by the FR Y-8 is
not available from other sources.

Description of Information Collection
The FR Y-8 is filed by holding companies for each insured depository institution they
control that has any section 23A transactions with affiliates in a given quarter. This report
collects data on covered transactions for each of their insured depository institutions. The data to
be reported vary based on the activities and subsidiaries of the insured depository institution.
There are four data items for insured depository institutions that have covered transactions with
affiliates other than financial subsidiaries. There are ten data items on covered transactions
between insured depository institutions and their financial subsidiaries. There is also a data item
on the maximum aggregate amount of all covered transactions for any single day during the
calendar quarter. Lastly, there are three data items concerning derivative transactions with
affiliates.
The FR Y-8 is submitted to the Federal Reserve Bank where a holding company submits
its Consolidated Financial Statements for Holding Companies (FR Y-9C; OMB No. 7100-0128),
Parent Company Only Financial Statements for Small Holding Companies (FR Y-9SP; OMB
No. 7100-0128), or Annual Report of Foreign Banking Organizations (FR Y-7; OMB No.
7100-0297). Respondents must submit the FR Y-8 electronically. Holding companies must
maintain in their files a physical copy of the manually signed FR Y-8 submission for a period of
three years following submission. A signature is not submitted as part of the electronic
submission.
Respondent Panel
The FR Y-8 panel comprises all top tier U.S. BHCs, IHCs, and SLHCs. In addition, all
FBOs that directly own a U.S. subsidiary bank also must file this report.
Time Schedule for Information Collection
The FR Y-8 is submitted quarterly as of the last day of March, June, September, and
December. It is submitted within 30 calendar days after the as of date. A 15-day extension of
time to submit the FR Y-8 may be granted to respondents that own banks with more than one
foreign office. A holding company is not required to submit an FR Y-8 report in a given quarter
with respect to a depository institution subsidiary that did not conduct any section 23A covered
transactions with an affiliate in that quarter.
Public Availability of Data
No data collected by this information collection is published.
Legal Status
Section 5(c) of the Bank Holding Company Act of 1956 authorizes the Board to require
BHCs and IHCs to file the FR Y-8 (12 U.S.C. § 1844(c)). Section 10(b)(2) of the Home Owners’
Loan Act authorizes the Board to require SLHCs to file the FR Y-8 (12 U.S.C. § 1467a(b)(2)).
Section 8(a) of the International Banking Act of 1978 authorizes the Board to require FBOs that
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directly own or control a U.S. subsidiary insured depository institution to file the FR Y-8
(12 U.S.C. § 3106(a)). The FR Y-8 report is mandatory for respondents that control an insured
depository institution that has engaged in covered transactions with an affiliate during the
reporting period.
Information provided on the FR Y-8 may be kept confidential under exemption 4 of the
Freedom of Information Act (FOIA) as confidential commercial or financial information that is
both customarily and actually treated as private (5 U.S.C. § 552(b)(4)). Information collected on
the FR Y-8 may also be considered confidential under FOIA exemption 8 if it is obtained as part
of an examination or supervision of a financial institution (5 U.S.C. § 552(b)(8)).
Consultation Outside the Agency
There has been no consultation outside the Federal Reserve System.
Public Comments
On October 18, 2021, the Board published an initial notice in the Federal Register (86
FR 57675) requesting public comment for 60 days on the extension, without revision, of the
FR Y-8. The comment period for this notice expired on December 17, 2021. The Board did not
receive any comments. The Board adopted the extension, without revision, of the FR Y-8 as
originally proposed. On February 17, 2022, the Board published a final notice in the Federal
Register (87 FR 9053).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR Y-8 is 21,590
hours. The estimated number of respondents is based on the number of FR Y-8 reporting forms
filed as of December 31, 2020. The average hours per response is estimated to be 7.3 hours to
prepare and file the FR Y-8 and 0.5 hours to maintain a physical copy of the manually signed
FR Y-8 for a period of three years following submission. These reporting and recordkeeping
requirements represent less than 1 percent of the Board’s total paperwork burden.
Estimated
Estimated
Estimated
Annual
number of
average hours annual burden
frequency
respondents1
per response
hours

FR Y-8
Reporting

692

4

7.3

20,206

Recordkeeping

692

4

0.5

1,384
21,590

Total

1

Of these respondents, 318 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.
There are no special accommodations given to mitigate the burden on small institution s.

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The estimated total annual cost to the public for the FR Y-8 is $1,277,049.2
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 $178,400.

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% Financial 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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