Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks

FFIEC 002 Draft Reporting Form and Instructions for Revisions
with Effective Dates Beginning with the June 30, 2021, Report Date

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The following draft reporting form and draft instructions, both of which are subject to change,
present the pages from the FFIEC 002 Report of Assets and Liabilities of U.S. Branches and
Agencies of Foreign Banks as they are proposed to be revised, subject to final approval by the
U.S. Office of Management and Budget (OMB). These proposed revisions are described in the
federal banking agencies’ initial Paperwork Reduction Act (PRA) Federal Register notice
published in the Federal Register on February 5, 2021. As discussed in the agencies’ final PRA
Federal Register notice published in the Federal Register on May 24, 2021, the agencies are
proceeding with the revisions to the FFIEC 002 Report, with certain modifications, including the
effective date of certain proposed revisions.

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The initial and final PRA Federal Register notices are available on the FFIEC’s webpage for the
FFIEC 002 Report.

Draft as of May 24, 2021

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Table of Contents
Impacted Schedule / Instruction Book Entry

Page

Effective as of the September 30, 2021, Report Date
4
6
7

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1. Revisions to Schedule O, Memorandum items 8 and 9
a. Report Form
b. Instructions to Schedule O
c. Associated Glossary Entry for Sweep Deposits
Clarifications for the June 30, 2021, Report Date

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2. Brokered Deposits Glossary Entry

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The revisions on pages 4 through 7 are effective as of the September 30, 2021, report date.

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FFIEC 002
Page 22 of 32

Schedule O—Continued
Dollar Amounts in Thousands
Memorandum item 2 is to be completed by branches with $1 billion or more
in total claims on nonrelated parties.2
2. Estimated amount of uninsured deposits in the branch, including related interest accrued and
unpaid3 ......................................................................................................................
3. Preferred deposits (to be completed for the December report only) .........................................
4. and 5. Not applicable
6. Outstanding balance of Paycheck Protection Program (PPP) loans ........................................
7. Quarterly average amount of holdings of assets purchased from money market funds under the
Money Market Mutual Fund Liquidity Facility ......................................................................

Reporting Branch
Excluding Its IBF
RCON

Amount

5597
5590

M.2.
M.3.

LG27

M.6.

LL58

M.7.

Insert A

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2. The $1 billion size test is generally based on the total claims on nonrelated parties (Schedule RAL, item 1.i, column A) reported in the preceding
calendar year's June 30 FFIEC 002.
3. Uninsured deposits should be estimated based on the deposit insurance limits set forth in Memorandum items 1.a through 1.d.

Schedule P—Other Borrowed Money

NOTE: Exclude all transactions with related depository institutions.

(Column A)
Total Reporting
Branch or Agency
Including Its IBF

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Dollar Amounts in Thousands
1. Owed to nonrelated commercial banks in the U.S. (including their IBFs):
a. Owed to U.S. offices of nonrelated U.S. banks ...............................
b. Owed to U.S. branches and agencies of nonrelated foreign banks .....
2. Owed to nonrelated banks in foreign countries:
a. Owed to foreign branches of nonrelated U.S. banks ........................
b. Owed to foreign offices of nonrelated foreign banks.........................
3. Owed to others ............................................................................

RCFD

Amount

(Column B)
IBF Only

RCFN

3312
3313

3312
3313

1.a.
1.b.

3314
3315

2.a.
2.b.
3.

2869

3314
3315
2869

RCXX

RCXY

4. Total (sum of items 1 through 3) (must equal Schedule RAL, item 4.c) .....

3190

3190

Memorandum
1. Immediately available funds with a maturity greater than one day
included in other borrowed money...................................................

RCFD

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Amount

4.

2805

M.1.

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09/2020
09/2021

Insert A
RCON

Amount

MT87
MT89
MT91
MT93
MT95

M.8.(a)
M.8.(b)
M.8.(c)
M.8.(d)
M.9

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Dollar Amounts in Thousands
8. Sweep Deposits:
(a)Fully insured, affiliate sweep deposits…………………………………………………
(b)Not fully insured, affiliate sweep deposits….……………………………………….
(c)Fully insured, non-affiliate sweep deposits………………………………………….
(d)Not fully insured, non-affiliate sweep deposits……………………………………
9. Total sweep deposits that are not brokered deposits……………………………….

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Memoranda
Item No.

Caption and Instructions

Item M8

Sweep deposits. Report in the appropriate subitem the indicated sweep deposit data (as defined
in the Glossary entry for “Sweep Deposits”).

Item M8.a Fully insured, affiliate sweep deposits. Report the amount of affiliate sweep deposits that are
fully insured.
Item M8.b Not fully insured, affiliate sweep deposits. Report the amount of affiliate sweep deposits for
which less than the entire amount of the deposit is covered by deposit insurance.

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Item M8.c Fully insured, non-affiliate sweep deposits. Report the amount of non-affiliated sweep
deposits that are fully insured.
Item M8.d Not fully insured, non-affiliate sweep deposits. Report the amount of non-affiliate sweep
deposits for which less than the entire amount of the deposit is covered by deposit insurance.
Total sweep deposits that are not brokered deposits. Report the total amount of sweep
deposits that are excluded from being reported as brokered deposits.

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Item M9

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Glossary
Sweep Deposit
Sweep deposit means a deposit held at the reporting institution by a customer or counterparty through a contractual
feature that automatically transfers to the reporting institution from another regulated financial company at the close of
each business day amounts under the agreement governing the account from which the amount is being transferred.
(Note: This definition of a “sweep deposit” is distinctly separate from the description of “retail sweep programs” in the
“Reporting of Retail Sweep Arrangements” section of the Glossary entry for “Deposits.”)
Affiliate sweep deposit means a sweep deposit that is deposited in accordance with a contract between a customer or
counterparty and the reporting institution, a controlled subsidiary of the reporting institution, or a company that is a
controlled subsidiary of the same top-tier company of which the reporting institution is a controlled subsidiary.

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Non-affiliate sweep deposit means a sweep deposit that is deposited in accordance with a contract between a customer
or counterparty and an entity that is not affiliated with the reporting institution.

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The clarifications on page 9 will be included in the June 30, 2021 Instruction Book updates.

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Brokered Deposits
Brokered deposits represent funds which the reporting branch obtains, directly or indirectly, by or through any deposit
broker for deposit into one or more deposit accounts. Thus, brokered deposits include both those in which the entire
beneficial interest in a given bank deposit account or instrument is held by a single depositor and those in which the
deposit broker sells participations in a given bank deposit account or instrument to one or more investors. The
meaning of the term “brokered deposit” depends on the meaning of the term “deposit broker.” The term “deposit
broker” is defined in Section 29(g) of the Federal Deposit Insurance Act and Section 337.6(a)(5) of the FDIC’s
regulations. Under Section 337.6(a)(5), the term “deposit broker” means:

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Any person engaged in the business of placing deposits of third parties with insured depository institutions;
Any person engaged in the business of facilitating the placement of deposits of third parties with insured
depository institutions;
Any person engaged in the business of placing deposits with insured depository institutions for the purpose of
selling those deposits or interests in those deposits to third parties; and
An agent or trustee who establishes a deposit account to facilitate a business arrangement with an insured
depository institution to use the proceeds of the account to fund a prearranged loan.

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•
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Section 337.6(a)(5) describes the meanings of “engaged in the business of placing deposits” and “facilitating the
placement of deposits” and describes certain exceptions to the term “deposit broker”, including certain business
relationships designated under the regulation as meeting such an exception. Brokered CDs that are placed by or
through the assistance of third parties with insured depository institutions are brokered deposits.

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In some cases, brokered deposits are issued in the name of the depositor whose funds have been placed in an institution
by a deposit broker. In other cases, an institution’s deposit account records may indicate that the funds have been
deposited in the name of a third party custodian for the benefit of others (e.g., “XYZ Corporation as custodian for the
benefit of others,” or “Custodial account of XYZ Corporation”). Unless the custodian meets one of the specific
exemptions from the “deposit broker” definition in Section 29 of the Federal Deposit Insurance Act and Section
337.6(a) of the FDIC’s regulationsthis Glossary entry, these custodial accounts should be reported as brokered
deposits in Schedule E, Deposit Liabilities.
A deposit listing service whose only function is to provide information on the availability and terms of accounts is not
facilitating the placement of deposits and therefore is not a deposit broker per se. However, if a deposit broker uses a
deposit listing service to identify an institution offering a high rate on deposits and then places its customers’ funds at
that institution, the deposits would be brokered deposits and the institution should report them as such in Schedule E.
The designation of these deposits as brokered deposits is based not on the broker’s use of the listing service but on the
placement of the deposits in the institution by the deposit broker

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