Recordkeeping FR Y-7N (annual)

Financial Statements of Subsidiaries

FRY7N_20250331_i_draft

Recordkeeping FR Y-7N (annual)

OMB: 7100-0073

Document [pdf]
Download: pdf | pdf
Board of Governors of the Federal Reserve System

Instructions for the Preparation of

Reporting Form FR Y-7N and FR Y-7NS
Effective September 2021

D

R

AF

December 2024

T

Financial Statements of U.S. Nonbank Subsidiaries Held by
Foreign Banking Organizations

General Instructions

Where to Submit the Reports

A “Certificate of Mailing” (U.S. Postal Service form
3817) may be used to provide such proof. If an overnight delivery service is used, entry of the completed
original reports into the delivery system on the day
before the submission deadline will constitute timely
submission. In addition, the hand delivery of the completed original reports on or before the submission
deadline to the location to which the reports would
otherwise be mailed is an acceptable alternative to
mailing such reports. Companies that are unable to
obtain the required officers’ signatures on their completed original reports in sufficient time to file these
reports so that they are received by the submission
deadline may contact the Federal Reserve Bank to
which they mail their original reports to arrange for the
timely submission of their report data and the subsequent filing of their signed reports.

AF

For paper filers of report form. The original report and
the number of copies specified by the Reserve Bank
should be submitted to the Reserve Bank where the
FBO files its Annual Report of Foreign Banking Orga(FR Y-7).
physical, or nizations
an electronic
scanned
All reports shall be made out clearly and legibly by

pleted FR Y-7N/FR Y-7NS is received late may be
called upon to provide proof of timely mailing.

T

All items will not be applicable to each nonbank subsidiary required to file the report. An “N/A” should be
entered if the nonbank subsidiary cannot be involved
in a transaction because of the nature of the organization. A zero should be entered whenever a nonbank
subsidiary can participate in an activity, but may not,
on the report date, have any outstanding balances.

typewriter or in ink. Reports completed in pencil will
not be accepted. FBOs may submit computer printouts
in a format identical to that of the report form, including all item and column captions and other identifying
numbers.

R

FBOs must maintain in their files a copy of the manually signed page 1 of the Reserve Bank-supplied forms
received for the report date, attached to the
page(s) containing the detailed listing of subsidiaries,
and a print out of the data submitted.

D

Electronic submission of report form. Any FBO interested in submitting the FR Y-7N and FR Y-7NS electronically
should contact the Federal Reserve Bank in
a physical,
or electronic
the district
where the FBO files its Annual Report of
scanned copy
of
Foreign Banking Organizations (FR Y-7).
FBOs choosing to submit these reports electronically
must maintain in their files the original manually
signed page 1 of the Reserve Bank-supplied forms
received for the report date, attached to the
page(s) containing the detailed listing of subsidiaries,
and a printout of the data submitted.

If the submission deadline falls on a weekend or holiday, the report must be received by 5:00 P.M. on the
first business day after the Saturday, Sunday, or holiday.for
Any
reportofreceived
after 5:00 P.M. on the first
a period
three years
business
day
after
the
Saturday,
Sunday, or holiday
following submission.
deadline will be considered late unless it has been postmarked three calendar days prior to the original Saturday, Sunday, or holiday submission deadline (original
deadline), or the institution has a record of sending the
report by overnight service one day prior to the original deadline.
NOTE: A FBO must submit all of its required nonbank subsidiary reports on or before the submission
deadline to be considered timely.

Monitoring of Regulatory Reports

Federal Reserve Banks will monitor the filing of all
regulatory reports to ensure that they are filed in a
timely manner and are accurate and not misleading.
A FBO must file this report for its nonbank subsidiarMany reporting errors can be screened through the use
ies no later than 60 calendar days after the report date.
of computer validity edit checks which are detailed in
The filing of a completed report will be considered
the Checklist accompanying the reporting instructions.
timely, regardless of when the reports are received by
for a period of three years
Reporting deadlines are detailed in Submission Date
the appropriate Federal Reserve Bank, if these reports
following submission.
section of these general instructions. Additional inforare mailed first class and postmarked no later than the
mation on the monitoring procedures are available
third calendar day preceding the submission deadline.
from the Federal Reserve Banks.
In the absence of a postmark, a company whose com-

Submission Date

FR Y-7N and FR Y-7 NS

GEN-5

September 2021

December 2024

Schedule IS

T

Entities that have adopted ASU 2016-13, which governs the accounting for credit losses, report the amount
expensed as the provisions for credit losses, during the
and 3
calendar year-to-date. The provisions for credit losses
represents the amount appropriate to absorb estimated
credit losses over the life of the financial assets
reported at amortized cost within the scope of the
standard. Exclude the initial allowances established on
the purchase of credit-deteriorated (PCD) financial
assets, which are recorded at acquisition as an adjustment to the amortized cost basis of the asset. The
amount reported in this item must equal Schedule IS-B, item 4, columns A through C plus Schedule IS-B, Memorandum item 1. Report negative
amounts with a minus (-) sign.

AF

Line Item 1(a) Interest and feeProvisions
income from
for credit losses
nonrelated organizations.
(or reversals of provisions)
on off-balance-sheet
credit
Report all interest, fees, and similar
income from nonexposures
related organizations.
represent the amounts
to adjust
the
Line Item 1(b) Interest and feenecessary
income from
related
related allowance for
organizations.
creditincome
losses at
the
Report all interest, fees, and similar
from
quarter-end
report
date for
related organizations. Exclude any noninterest income
management’s
current
and income from undistributed earnings of related
estimate
of expected
credit
organizations (report in item 5(b)).
Include
dividends
losses
on
declared or paid by subsidiaries.
these exposures.
Line Item 1(c) Total interest income.
Report the sum of items 1(a) and 1(b).

on all financial assets and
off-balance-sheet credit
the
Line Item 4 Provision forexposures
loan and within
lease losses.
scope
of
the
ASU.
Entities that have not adopted ASU 2016-13 should
report the amount needed to make the allowance for
loan and lease losses, as reported in Schedule BS,
item 3(b), adequate to absorb expected loan and lease
losses, based upon management’s evaluation of the
subsidiary’s current loan and lease exposures. The
amount reported must equal Schedule IS-B, item 4
column A, “Provision for credit losses.”

R

Line Item 2 Interest expense.
Report in the appropriate subitem the total amount of
interest expense of the subsidiary pertaining to nonrelated organizations in item 2(a) and pertaining to
related organizations in item 2(b). Include expenses on
deposits, on federal funds purchased and securities
sold under agreements to repurchase, on shortand
long-term borrowings, on subordinated notes and
debentures, on mandatory securities, on mortgage
indebtedness and obligations under capitalized leases,
and all other interest expense.

D

Line Item 2(a) Interest expense pertaining to
nonrelated organizations.
Report all interest expense pertaining to nonrelated
organizations.

Line Item 2(b) Interest expense pertaining to related
organizations.
Report all interest expense pertaining to related
organizations.
Line Item 2(c) Total interest expense.
Report the sum of items 2(a) and 2(b).
Line Item 3 Net interest income.
Report the difference between item 1(c), “Total interest
income,” and item 2(c), “Total interest expense.” If this
amount is negative, paper filers should enclose it in
parentheses or report with a minus (−) sign. Electronic
filers should report negative amounts with a minus (−)
sign.
IS-2

March 2019

December 2024

Exclude provision for credit losses on off-balance-sheet
credit exposures and provision for allocated transfer
risk, both of which should be reported in item 7,
“Noninterest expense.” The amount reported here may
differ from the bad debt expense deduction taken for
federal income tax purposes.

If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (−) sign. Electronic filers should report negative
amounts with a minus (−) sign.
Line Item 5 Noninterest income.
Report in the appropriate subitem all other income not
properly reported in item 1(c), “Total interest income”
that is derived from activities in which the subsidiary is
engaged. Report noninterest income from nonrelated
organizations in item 5(a) and from related organizations in item 5(b). Also, a subsidiary may include as
other noninterest income in item 5(a)(7) or 5(b) below
net gains (losses) from the sale of loans and certain
other assets as long as the subsidiary reports such
transactions on a consistent basis.
FR Y-7N

LINE ITEM INSTRUCTIONS FOR

Changes in Allowance for Credit
Losses
Schedule IS-B

Line Item 2 Recoveries.
Entities that have not adopted ASU 2016-13, report
the amount credited to the allowance for loan and lease
losses for recoveries during the calendar year-to-date
on amounts previously charged against the allowance
for loan and lease losses.

AF

This schedule has three columns for information on the
allowances for credit losses, one for each of the following asset types: 1) loans and leases held for investment
(Column A), 2) held-to-maturity debt securities (Column B), and 3) available-for-sale debt securities (Column C).

must reflect the effect of all corrections and adjustments to the allowance for loan and lease losses that
were made in any amended report(s) for the previous
calendar year-end.

T

General Instructions

R

Entities that have not adopted ASU 2016-13, which
governs the accounting for credit losses, report the reconcilement of the allowance for loan and lease losses
on a calendar year-to-date basis in column A. Leave
columns B and C blank. Entities that have adopted
ASU 2016-13 report changes in the allowances for
credit losses for loans and leases held for investment,
held-to-maturity debt securities and available-for-sale
debt securities in the applicable columns.

D

Report all changes in the allowance account on a yeartodate basis. When the subsidiary maintains an allowance for possible loan and lease losses, report all related
transactions and reconcile, beginning with the balance
reported at the end of the previous year, to the balance
of the allowance shown in Schedule BS, Balance Sheet,
Item 3(b), as of the end of the current period. The provision for possible loan and lease losses should correspond to the amount reported in Schedule IS, item 4,
“Provision for loan or lease losses.” Exclude transactions pertaining to reserves carried in capital accounts,
such as reserves for contingencies that represent a segregation of undivided profits. Also exclude any allowance for credit losses on off-balance-sheet exposures.
Line Item 1 Balance most recently reported at end of
previous calendar year.
Entities that have not adopted ASU 2016-13, include
in column A the ending balance as most recently
reported for the prior year end in the allowance for
possible loan and lease losses account. The amount

FR Y-7N

Entities that have adopted ASU 2016-13, report the
amount credited to the allowance for credit losses for
recoveries during the calendar year-to-date on
amounts previously charged against the allowance for
credit losses.
Line Item 3 Less: Charge-offs.
Entities that have not adopted ASU 2016-13, report the
amount of all loans and leases charged against the
allowance for loan and lease losses during the calendar
year-to-date.
Entities that have adopted ASU 2016-13, report the
amount charged against the allowance for credit losses
during the calendar year-to-date.

Line Item 4 Provision for loan and lease losses.
Entities that have not adopted ASU 2016-13, report
the amount expensed as the provision for loan and
losses during the calendar year-to-date. The provision
for loan and lease losses represents the amount needed
to make the allowance for loan and lease losses
adequate to absorb estimated loan and lease losses,
based upon management's evaluation of the current
loan and lease exposures. The amount reported in this
item must equal Schedule IS, item 4. If the amount
IS-B-1

March 2019

Schedule IS-B

Entities that have adopted ASU 2016-13 should report
in the appropriate column the amount expensed as the
provision for credit losses during the calendar year-todate. The provisions for credit losses represents the
amount appropriate to absorb estimated credit losses
over the life of the financial assets reported at amortized cost within the scope of the standard. The
amount reported in this item must equal Schedule IS,
item 4. If the amount reported in this item is negative,
report it with a minus (-) sign.

Memoranda
Line Item M1 Provisions for credit losses on other
financial assets measured at amortized cost (not
included in item 4).
Report in this line item provisions related to allowances
for credit losses on financial assets measured at amortized cost, included in Schedule IS, item 4, other than
loans, leases, held-to-maturity debt securities and
available-for-sale debt securities. Provisions for credit
losses (or reversals of provisions) on these other financial assets measured at amortized cost represent the
amounts necessary to adjust the related allowances for
credit losses at the quarter-end report date for management’s current estimate of expected credit losses on
these assets.

AF

Line Item 5 Adjustments.
Include any increase or decrease resulting from foreign
currency translation of the allowance for possible loan
and lease losses into dollars. If this amount is negative,
paper filers should enclose it in parentheses or report
with a minus (−) sign. Electronic filers should report
negative amounts with a minus (−) sign.

Line Item 6 Balance at end of current period.
Enter the total of items 1, 2, 4, and 5, minus item 3.
This item must equal Schedule BS, item 3(b), “Allowance for Loan and Lease Losses.”

T

reported in this item is negative, report it with a minus
(-) sign.

R

Entities that have not adopted ASU 2016-13, report in
column A of in this item as a negative the balance of
the allowance for loan and lease losses most recently
reported for the end of the previous calendar year.

D

Entities that have adopted ASU 2016-13, report in the
appropriate columns for this item as a negative the balance of the allowances for credit losses on financial
assets that are not determined by management to be
PCD most recently reported for the end of the previous
calendar year. For those assets determined by management to be PCD, the allowances for credit losses as of
the acquisition date should then be reported as a positive number in the appropriate columns for this line
item.

IS-B-2

January 2020

December 2024

Exclude provisions for credit losses on off-balance
sheet credit exposures, which are reported in Schedule IS item 7, “noninterest expense.”
Line Item M2 Allowances for credit losses on other
assets measured at amortized cost (not included in
memorandum item 1 above).
Report in this line item total allowances related to
credit losses on financial assets measured at amortized
cost other than loans, leases, held-to-maturity debt
securities and available-for-sale debt securities that are
associated with the provisions reported in memorandum item 1, above.
See Insert A

FR Y-7N

Insert A
Line Item M3 Provisions for credit losses on
off-balance-sheet credit exposures.
Report in this item the year-to-date amount of
provisions for credit losses (or reversals of provisions)
on off-balance-sheet credit exposures included in the
amount reported in Schedule IS, item 4. Provisions
for credit losses (or reversals of provisions) on offbalance-sheet credit exposures represent the amounts
necessary to adjust the related allowance for credit
losses at the quarter-end report date for management’s
current estimate of expected credit losses on these
exposures.

Line Item M4 Estimated amount of expected
recoveries of amounts previously written off1
included within the allowance for credit losses on
loans and leases held for investment (included in
item 6, column A, “Balance at end of current
period”).
Report in this item the estimated amount of expected
recoveries of amounts previously written off
included within the allowance for credit losses on
loans and leases held for investment. This item
applies to loans and leases held for investment,
including purchased credit deteriorated loans held for
investment, and does not apply to held-to-maturity
debt securities or available-for-sale debt
securities.

In accordance with ASU 2016-13, estimated expected
recoveries are a component of management’s
estimation of the net amount expected to be collected
for a financial asset or a pool of financial assets if an
institution can support an estimate of expected
recoveries for a pool of unsecured loans, each of
which was deemed uncollectible and fully written off
on an individual asset basis, the institution reduces
the allowance for credit losses by the institution’s
estimate of recoveries expected on a pool basis.

D

R

AF

T

Expected recoveries of amounts previously written
off shall be included in the allowance for credit losses
and shall not exceed the aggregate of amounts
previously written off and expected to be written off
by an institution. However, exclude from this item
the estimated amount of expected recoveries of
amounts expected to be written off included in the
allowance for credit losses.

1

The term "written off" as used in ASU 2016-13 and in the instructions for this item is used interchangeably with the
term "charged off," which is used elsewhere in the FR Y-9C instructions.

Schedule BS

(1) Promissory notes;
(2) Perpetual debt securities that are unsecured and
not subordinated;
(3) Notes and bills rediscounted (including commodity drafts rediscounted);
(4) Loans sold under repurchase agreements and
sales of participations in pools of loans that
mature in more than one business day;
(5) Due bills issued representing the subsidiary’s
receipt of payment and similar instruments,
whether collateralized or uncollateralized;

Line Item 15 Liabilities to nonrelated organizations.
Enter the sum of items 11 through 14.
Line Item 16 Balances due to related institutions,
gross.
Report all balances due to the top tier bank holding
company or banking organization, all balances due to
subsidiary banks (or their branches) or subsidiary
bank holding companies of the top tier bank holding
company, and all balances due to other subsidiaries of
these organizations (including subsidiaries of the parent organization), on a gross basis.

AF

(6) “Term federal funds” purchased;

all liabilities with related institutions. Report such
liabilities in item 16.

T

Borrowings may take the form of:

(7) Securities sold under agreements to repurchase;
(8) Notes and debentures issued by the respondent
subsidiary;
(9) Mortgage indebtedness and obligations under
capitalized leases with a remaining maturity of
more than one year; and

R

(10) Limited-life preferred stock. Limited life preferred stock is preferred stock that has a stated
maturity date or that can be redeemed at the
option of the holder. It excludes those issues of
preferred stock that automatically convert into
perpetual preferred stock at a stated date.

D

Exclude all borrowings with related institutions. Report
such borrowings in item 16.
Line Item 14 Other liabilities.
Report the total amount of all other liabilities that cannot be properly reported in items 11 through 13.
Include liabilities such as deposits held by the subsidiary, liability on acceptances outstanding, expenses
accrued and unpaid, deferred income taxes (if credit
balance), dividends declared but not yet payable,
accounts payable (other than expenses accrued and
unpaid), liability on deferred payment letters of credit,
deferred gains from saleleaseback transactions, unamortized loan fees (other than those that represent
an
adjustment of the interest yield, if material), and
reserves for credit risk on off-balance sheet items.
Also, report all derivatives with negative fair value held
for purposes other than trading in this item. Exclude
FR Y-7N

Exclude all balances due from related institutions and
include in item 9.
Line Item 17 Total liabilities.
Report the sum of items 15 and 16.
Line Item 18 Equity capital.
Equity capital represents the sum of capital stock, surplus, undivided profits, and various reserve accounts.
Line Item 18(a) Stock.
If the subsidiary is in corporate form, report the
amount of perpetual preferred stock issued, including
any amounts received in excess of its par or stated
value, and the aggregate par or stated value of common
stock issued.
If the subsidiary is not in corporate form, report the
amount of general or limited partnership shares or
interests issued in item 18(e).

Line Item 18(b) Surplus (exclude all surplus related to
preferred stock).
If the subsidiary is in corporate form, report the net
amount formally transferred to the surplus account,
including capital contributions, and any amount
received for common stock in excess of its par or stated
value on or before the report date. Exclude any portion
of the proceeds received from the sale of limited-life
preferred stock in excess of its par or stated value
(report in item 13) or any portion of the proceeds
received from the sale of perpetual preferred stock in
excess of its par or stated value (report in item 18(a)).
BS-7
September 2011
December
2024

Schedule BS-A

Exclude acceptances accepted by related banks (i.e.,
banks that are direct or indirect subsidiaries of the subsidiary’s bank holding company or parent organization). Also exclude loans to foreign governments and
foreign official institutions.

Line Item 5 All other loans and lease financing
receivables.
Report all other loans held by the subsidiary that are
not properly included in items 1 through 4 above and
all lease financing receivables. Report all outstanding
receivable balances relating to direct financing and leveraged leases on property acquired by the subsidiary
for leasing purposes. These balances should include the
estimated residual value of leased property and must
be netmodifications
of unearned income.
Include all
lease financing
to borrowers
experiencing
receivables
of
states
and
political
subdivisions
in the
financial difficulty
U.S. Also include all loans to foreign governments and
official institutions.

AF

Line Item 3 Commercial and industrial loans.
Report all loans (regardless of domicile) for commercial and industrial purposes to sole proprietorships,
partnerships, corporations, and other business enterprises, whether secured (other than by real estate) or
unsecured, single-payment or installment. These loans
may take the form of direct or purchased loans.
Include commercial and industrial loans guaranteed by
foreign governmental institutions.

hold, family, and other personal expenditures that are
not secured by real estate, whether direct loans or purchased paper. Exclude loans secured by real estate
(report in item 1) and loans to individuals for the purpose of purchasing or carrying securities (report in
item 5).

T

for personal expenditure purposes. This includes commercial banks in the U.S., foreign branches of U.S.
banks and banks in foreign countries. Report the subsidiary’s holdings of all bankers acceptances accepted
by unrelated banks (i.e., banks that are not direct or
indirect subsidiaries of the subsidiary’s bank holding
company or parent organization).

Exclude:

R

(1) Loans secured by real estate (report in item 1);

(2) Loans for the purpose of financing agricultural
production, whether made to farmers or to
nonagricultural businesses (report in item 5);

D

(3) Loans to finance companies and insurance companies (report in item 5);
(4) Loans to broker and dealers in securities, investment companies, and mutual funds (report in
item 5);
(5) Loans to depository institutions (report in
item 2);
(6) Loans to nonprofit organizations (report in
item 5); and
(7) Loans to nondepository financial institutions
(report in item 5).

Line Item 4 Loans to individuals for personal,
household, and other personal expenditures.
Report credit card and related plans and other loans to
individuals for household, family, and other personal
expenditures. Include all loans to individuals for houseBS-A-2

March 2011

December 2024

Line Item 6 Total loans and lease financing
receivables.
Report the sum of items 1 through 5.
Line Item 7 Past due and nonaccrual loans and leases.
Report the subsidiary loans and lease financing receivables included in item 6 abovethat are past due 30
through 89 days and still accruing in item 7(a), past due
90 days or more and still accruing in item 7(b), in nonaccrual status in item 7(c), and loans restructured in
troubled debt restructurings included in past due and
nonaccrual loans in item 7(d). Report the full outstanding balances of the past due loans and lease
financing receivables, not simply the delinquent payments.
Line Item 7(a) Loans and leases past due 30 through
89 days.
Report loans and lease financing receivables that are
contractually past due 30 through 89 days as to principal or interest payments, and still accruing. Include
loans restructured in troubled debt restructurings past
due 30 through 89 days and still accruing.
Line Item 7(b) Loans and leases past due 90 days or
more.
Report loans and lease financing receivables that are
contractually past due 90 days or more as to principal
FR Y-7N

Schedule BS-A
modifications to borrowers experiencing
financial difficulty

that the subsidiary has elected to carry any loans in
nonaccrual status on its books, such loans must be
reported as nonaccrual in this item.

Line Item 7(c) Nonaccrual loans and leases.
Report loans and lease financing receivables accounted
for on a nonaccrual status. Include loans restructured
in troubled debt restructurings that are in nonaccrual
status.For purposes of this report, report loans and
leases as being in nonaccrual status if: (a) they are
maintained on a cash basis because of deterioration in
the financial position of the borrower, (b) payment in
full of interest or principal is not expected, or (c) principal or interest has been in default for a period of
90 days or more unless the obligation is both wellsecured and in the process of collection.

Line Item 7(d) Loans restructured in troubled debt
restructurings included in items 7(a) through 7(c) above.
Report loans restructured in troubled debt restructurings that, under their modified terms, are past due
30 days or more and still accruing or are in nonaccrual
status as of the report date. Such loans will have been
included in items 7(a), 7(b), or 7(c) above. Loans
restructured in troubled debt restructurings include
those loans that have been restructured or renegotiated
to provide a reduction of either interest or principal
because of a deterioration in the financial position of
the borrower. A loan extended or renewed at a stated
interest rate equal to the current interest rate for new
debt with similar risk is not considered restructured
debt. For further information, see the FR Y-9C Glossary entry for “troubled debt restructurings.”

AF

T

or interest payments, and still accruing. Include loans
restructured in troubled debt restructurings past due
90 days or more and still accruing.

R

NOTE: Loans to individuals for household, family,
and other personal expenditures and loans secured by
1–4 family residential properties on which principal or
interest is due and unpaid for 90 days or more are not
required to be reported as nonaccrual loans. Nevertheless, such loans should be subject to other alternative
methods of evaluation to assure that the subsidiary’s
net income is not materially overstated. To the extent

D

For the purposes of this report, subsidiaries should
disclose modifications to borrowers experiencing
financial difficulty if such modifications include principal
forgiveness, an interest rate reduction, an other-thaninsignificant payment delay, or a term extension (or a
combination thereof).

Include all loans to individuals for household, family,
and other personal expenditures, and all loans secured
by 1−4 family residential properties.
"Loan Modifications to
Borrowers Experiencing
Financial Difficulty."

Modified loans reported in this schedule should meet
the definition of loan modifications to borrowers
experiencing financial difficulty, as described in ASU
2022-02, which includes only those modifications
which occurred in the previous 12 months. The
amounts reported should include modifications that
were accounted for as new loans in addition to
modifications that were accounted for as a continuation
of existing loans.

FR Y-7N

BS-A-3

March 2011

December 2024


File Typeapplication/pdf
File Modified2025-03-13
File Created2023-01-19

© 2025 OMB.report | Privacy Policy