These reports collect selected financial information for direct or indirect foreign subsidiaries of U.S. state member banks (SMBs), Edge and agreement corporations, and holding companies (i.e., bank holding companies, savings and loan holding companies, and securities holding companies). The FR 2314 consists of a balance sheet and income statement; information on changes in equity capital, changes in the allowance for loan and lease losses, off-balance-sheet items, and loans; and a memoranda section. The FR 2314S collects four financial data items for smaller, less complex subsidiaries.
Purpose: The data are used to identify current and potential problems at the foreign subsidiaries of U.S. parent companies, to monitor the activities of U.S. banking organizations in specific countries, and to develop a better understanding of activities within the industry, in general, and of individual institutions, in particular. The FR 2314 reports are the only source of comprehensive and systematic data on the assets, liabilities, and earnings of the foreign bank and nonbank subsidiaries of U.S. SMBs, holding companies, and Edge Act and agreement corporations.
With the growth of the international sector of the U.S. banking industry in the late 1960s, the Federal Reserve Bank of New York began collecting annual data on foreign organizations on the FR 314 and forwarding this information to the Board. In 1978, the FR 314 report was changed to the Report of Condition for Foreign Organizations Controlled by Member Banks, Edge Act and Agreement Corporations, and bank holding companies (FR 2314). In 1987, Board staff began collecting the data directly from each Reserve Bank to expedite the collection process. In 1989, the report was divided into three forms (a, b, and c) based on asset size and since then was revised several times to improve its usefulness as a supervisory tool. In December 2002, the reports were streamlined to collect consistent information from domestic and foreign banking organizations about their nonbank subsidiaries. Also, the thresholds for filing the reports were revised to reduce burden, and consolidation of individual subsidiaries was no longer allowed. The thresholds for reporting were revised again in March 2006 to make them consistent with the filing threshold for reporting the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C; OMB No. 7100-0128) and to further reduce reporting burden. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) was enacted into law on July 21, 2010. Title III of the Dodd-Frank Act abolished the Office of Thrift Supervision (OTS) and transferred all former OTS authorities (including rulemaking) related to savings and loan holding companies (SLHCs) to the Federal Reserve effective as of July 21, 2011. The Federal Reserve also became responsible for the consolidated supervision of SLHCs beginning July 21, 2011. During 2011, the Board finalized its proposal exempting a limited number of SLHCs from regulatory reporting using the Board's existing regulatory reports and providing a two-year phase-in approach for regulatory reporting for all other SLHCs beginning March 31, 2012.
A holding company must file the FR 2314 report quarterly for its foreign subsidiary if the subsidiary is owned or controlled by a parent U.S. holding company that files the FR Y-9C, or a state member bank or an Edge Act or agreement corporation that has total combined assets of $500 million or more and if the nonbank subsidiary has (a) total assets of $1 billion or more, or (b) total off-balance sheet activity of $5 billion or more, or (c) equity capital of 5 percent or more of the consolidated equity capital of the top-tier organization, or (d) operating revenue of 5 percent or more of the consolidated operating revenue of the top-tier organization. A holding company must file the FR 2314 report annually for its foreign subsidiary (that does not meet the criteria for filing quarterly) if the foreign subsidiary has total assets of $250 million or more but less than $1 billion. A holding company must file the FR 2314S report annually for its foreign subsidiary (that does not meet the criteria for filing quarterly) if the foreign subsidiary has assets of $50 million or more but less than $250 million, or total assets greater than 1 percent of the total consolidated assets of the top-tier organization. Participation is mandatory.
Quarterly or annually, as of close of business the last calendar day of the quarter, based on the thresholds described above.
With certain exceptions, microdata are considered public information and are available through the Board's Freedom of Information Office.