FED Supporting Statement for Reporting Requirements for Foreign Banks

FED adopted a final rule that establishes risk-based categories for determining prudential standards for large U.S. banking organizations and foreign banking organizations, consistent with section 165 of Dodd-Frank Act. The final rule amends certain prudential standards, including standards relating to liquidity, risk management, stress testing, and single-counterparty credit limits, to reflect the risk profile of banking organizations under each category. The final rule applies prudential standards to certain large savings and loan holding companies using the same categories; makes corresponding changes to reporting forms; and makes additional modifications to the company-run stress test and supervisory stress test rules of FED, consistent with section 401 of Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act. The final rule becomes effective from December 31, 2019.

FED revised item 5 on the FR Y-7, with respect to Regulation YY on compliance for foreign banking organization, to align the reporting form with the applicability thresholds set forth in the final rule and other regulatory changes that are consistent with FED’s July 2018 statement concerning EGRRCP Act. The first as-of date for the amended FR Y-7 is the next report after the effective date of the final rule. There are no changes to the FR Y-6, FR Y-10, or FR Y-10E.

FR Y-6 collects financial and organizational information from holding companies and foreign banking organizations that are non-qualifying. Covered financial institutions submit the FR Y-6 annually, no later than 90 calendar days after the end of the respondent’s fiscal year. FR Y-7 collects financial and organizational information from qualifying foreign banking organizations. Qualifying foreign banking organizations submit the FR Y-7 annually as of the end of the fiscal year and the data are due no later than four months after the report date. FR Y-10 is an event-generated report that captures changes in organizational structure or the regulated investments and activities of various entities. Covered financial institutions submit the data within 30 calendar days of a reportable transaction or event. FR Y-10E is a formless supplement to the FR Y-10 that FED may use to collect additional structural information on an emergency basis. 

Related Links

• Notification
• Supporting Statement

Keywords: Americas, US, Banking, Foreign Banks, Reporting, Stress Testing, Liquidity Risk, Dodd-Frank Act, EGRRCP Act, FED