Reporting Section 251.6

Board of Governors of the Federal Reserve System

Instructions for the Preparation of

Financial Company (as defined)
Report of Consolidated Liabilities
Reporting Form FR XX-1
Effective December 2020

INSTRUCTIONS FOR PREPARATION OF

Financial Company (as defined)
Report of Consolidated Liabilities
FR XX-1

Who Must Report

How to Prepare the Reports

A financial company that is: (1) a top-tier company
that controls an insured depository institution, as
defined in section 3(c)(2) of the Federal Deposit Insurance Act, but does not file the Consolidated Financial
Statements for Holding Companies (FR Y-9C), the
Parent Company Only Financial Statements for Small
Holding Companies (FR Y-9SP), Parent Company
Only Financial Statements for Large Holding Companies (FR Y-9LP), the Capital and Asset Report for Foreign Banking Organizations (FR Y-7Q), or consolidated total liabilities on the Quarterly Savings and
Loan Holding Company Report (FR 2320), or (2) a
nonbank financial company super- vised by the Board
of Governors of the Federal Reserve System (Board)
that does not file the Consolidated Financial Statements for Holding Companies (FR Y-9C).

A. Scope of the “Consolidated Liabilities”
to be Reported

Where to Submit the Reports
Electronic Submission
All financial companies must submit their completed
reports electronically. Financial companies should go
to www.frbservices.org/centralbank/reportingcentral/
index.html for procedures for electronic submission.

When to Submit the Report
The FR XX-1 is required to be submitted as of
December 31. Financial companies are required to
submit their FR XX-1 report no later than March 31st
(5:00 p.m. EST) of the following year.
Earlier submission aids the Board in reviewing and
processing the report and is encouraged. No extensions
of time for submitting reports are granted.
FR XX-1

Unless otherwise provided by the Board, a financial
company that is incorporated or organized in the
United States should report its total consolidated
liabilities. It should consolidate its subsidiaries on the
same basis as it does for its annual reports to the Securities and Exchange Commission (SEC) or, for those
financial companies that do not file reports with the
SEC, on the same basis as described in generally
accepted accounting principles (GAAP). Generally,
under the rules for consolidation established by the
SEC and by GAAP, financial companies should consolidate any company in which it owns more than
50 percent of the outstanding voting stock.
Unless otherwise provided by the Board, a financial
company that is incorporated or organized in a country other than the United States should report the combined liabilities of its U.S. operations, which is equal to
the sum of the consolidated liabilities of its top-tier
U.S. subsidiaries. Any top-tier U.S. subsidiary should
consolidate its U.S. subsidiaries on the same basis as it
does for its annual reports to the SEC or, for those
companies that do not file reports with the SEC, on the
same basis as described in generally accepted accounting principles (GAAP). Generally, under the rules for
consolidation established by the SEC and by GAAP,
holding companies should consolidate any company in
which it owns more than 50 percent of the outstanding
voting stock. A financial company is permitted, but is
not required, to reduce the aggregate liabilities of its
U.S. subsidiaries by amounts corresponding to balances and transactions between U.S. subsidiaries of the
financial company to the extent that such subsidiaries
are domiciled in the United States and such items
would not already be eliminated in consolidation.
GEN-1

December 2020

General Instructions

If a financial company or, in the case of a foreign
financial company, a top-tier U.S. subsidiary, does not
consolidate its subsidiaries as described by GAAP for
any regulatory purpose (including compliance with
applicable securities laws), the financial company may
submit a request to the Board that it use an accounting
standard or method of estimation other than GAAP to
calculate its liabilities for purposes of this report. The
Board may, in its discretion and subject to Board
review and adjustment, permit the company to calculate ‘‘Total consolidated liabilities of the financial company’’ on an annual basis using this accounting standard or method of estimation.

Item 1 Total consolidated liabilities of the financial
company
Report the total liabilities of the consolidated financial
company.
Include as total liabilities:

(1) Deposits
(2) Federal funds purchased and securities sold
under agreements to repurchase
(3) Trading liabilities
(4) Commercial paper
(5) Other borrowed money
(6) Subordinated notes and debentures

B. Confidentiality
The completed version of this report generally is available to the public upon request on an individual basis.
However, a reporting financial company may request
confidential treatment for the Financial Company
(as defined) Report of Consolidated Liabilities
(FR XX-1) if the financial company both customarily
and actually treats this information as private.
A request for confidential treatment must be submitted
in writing prior to the electronic submission of the
report. Information for which confidential treatment is
requested may subsequently be released by the Federal
Reserve System if the Board determines that the disclosure of such information is in the public interest.

C. Signatures
The Financial Company (as defined) Report of Consolidated Liabilities must be signed by the chief financial officer of the financial company (or by the individual performing this equivalent function). By signing
the cover page of this report, the authorized officer
acknowledges that any knowing and willful misrepresentation or omission of a material fact on this report
constitutes fraud in the inducement and may subject
the officer to legal sanctions provided by 18 USC 1001
and 1007.
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December 2020

(7) Net deferred tax liabilities
(8) Allowance for credit losses on off-balance-sheet
credit exposures
(9) Accounts payable.
(10) Deferred compensation liabilities.
(11) Dividends declared but not yet payable
(12) Derivative instruments that have a negative fair
value that the reporting holding company holds
for purposes other than trading.
(13) Deferred gains from sale-leaseback transactions.
(14) Unamortized loan fees, other than those that
represent an adjustment of the interest yield
(15) Holding company’s liability for deferred payment letters of credit.
(16) Recourse liability accounts arising from asset
transfers with recourse that are reported as sales.
(17) Claims and claims adjustment expense reserves
of insurance subsidiaries.
(18) Unearned premiums of insurance subsidiaries.
(19) Policyholder benefits and contractholder funds
of insurance subsidiaries.
(20) “Separate account liabilities” of insurance
subsidiaries
(21) The full amount (except as noted below) of the
liability represented by drafts and bills of
FR XX-1

General Instructions

exchange that have been accepted by the reporting holding company, or by others for its
account, and that are outstanding. The holding
company’s liability on acceptances executed and
outstanding should be reduced prior to the
maturity of such acceptances only when the
reporting holding company acquires and holds
its own acceptances, i.e., only when the acceptances are not outstanding.

FR XX-1

(22) Servicing liabilities.
(23) The negative fair value of unused loan commitments (not accounted for as derivatives) that the
holding company has elected to report at fair
value under a fair value option.

GEN-3

December 2020