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FEDERAL RESERVE BANK
OF NEW YORK
November 2, 1979
PROPOSED REVISION OF FORM F.R. Y-7
To the C h ief E xecutive O fficer o f Each Foreign Bunk
H olding C om pan y, an d the O fficer in Charge o f Each U.S. A gency,
Branch, or C om m ercial Lending C om pan y o f a Foreign Bank,
in the Secon d Federal R eserve D istrict:
The Board o f Governors is seeking public comment on a proposed form, entitled
“ Annual Report of Foreign Bank Holding Companies, Foreign Banks, and Foreign Parent
Companies’ ’ (Form F.R. Y-7). The proposed form is a revision of the Form F.R. Y-7 which
is currently filed by bank holding companies that are organized under the laws of a foreign
country and that meet the Board’ s definition of a “ foreign bank holding company.’ ’ As a
result o f the International Banking Act of 1978, the report would also be required from
foreign banks with U.S. banking operations, other than through a U.S. subsidiary bank,
that are conducted through a branch, agency, or commercial lending company, and from
foreign parent companies controlling such foreign banks.
The form would be filed with this Bank on an annual basis three months after the end
o f the foreign banking organization’ s fiscal year. Foreign banks that are not bank holding
companies and foreign parent companies controlling such foreign banks would be required
to file their initial report 120 days after the Board approves the proposed report. The initial
filing by these foreign organizations would serve as a Registration Statement with the Board.
The initial report should include financial data for one year, as of the latest fiscal year-end
prior to the approval date o f the report. Existing foreign bank holding companies that have
their current fiscal year-end on October 31, 1979 or after would be required to file the new'
report instead of the current F.R. Y-7 report, but these companies would have an extension
o f time to file their Annual Report until 120 days after the proposed report is approved by
the Board.
Federal Register
A copy o f the
notice and the proposed form are enclosed for your com
ments. Officers in charge o f agencies, branches, or commercial lending companies of foreign
banks operating in the U.S. are asked to send copies of the documents to their parent bank
ing organization for comment.
Federal Register
Your attention is directed to the
notice, which identifies issues on
which specific comments are requested. Comments must be received by January 4, 1980 and
may be sent to our Bank Analysis Department. Inquiries may be directed to Donald E.
Schmid, Manager, Bank Analysis Department (Tel. No. 212-791-6611).
THOMAS M. TlMl.EN,
First Vice President.
FEDERAL RESERVE SYSTEM
P r o p o s e d R e p o r t R e q u ir e m e n t :
A n n u a l R e p o r t o f F o r e ig n Bank H o ld in g
C o m p a n ie s , F o r e ig n B a n k s, and F o r e ig n P a r e n t C o m p a n ie s
( D o c k e t N o. R - 0 2 5 6 )
AGENCY:
ACTION:
B oa rd o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m .
P roposed re p o rt.
SUMMARY*
T h e B oa rd o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s te m is s u b m it t in g
f o r p u b lic c o m m e n t a D ro p o s e d fo r m fo r th e A n n u al R e p o r t o f F o r e ig n Bank H o ld in g
C o m p a n ie s , F o r e ig n B an k s, and F o r e ig n P a re n t C o m p a n ie s (F o r m F .R . Y - 7 . T n e
r e p o r t is a u t h o r iz e d by t h e Bank H o ld in g C o m p a n y A c t o f 1956 ( BH C A c t ), th e
In te r n a tio n a l B a n k in g A c t o f 197S ("IB A A c t " ) , and th e B o a rd 's R e g u la t io n Y . T h e
p r o p o s a l is a r e v is io n o f th e F .R . Y - 7 w h ic h is c u r r e n t ly f i le d by b an k h o ld in g
c o m p a n ie s o r g a n iz e d u n der th e la w s o f a f o r e i g n c o u n t r y and m e e t in g th e B o a rd 's
d e f in it io n o f a " f o r e i g n ban k h o ld in g c o m p a n y ." A s a r e s u lt o f th e In te r n a tio n a l
B a n k in g A c t o f 1 9 7 8 , th e p r o p o s e d r e p o r t w ill a lso b e f i le d by f o r e i g n ba n k s w ith
U .S .
b a n k in g o p e r a t io n s , o t h e r th a n th r o u g h a U .S . s u b s id ia ry b a n k , th a t a r e
c o n d u c t e d th ro u g h a b r a n c h , a g e n c y , or c o m m e r c i a l le n d in g c o m p a n y and by f o r e i g n
p a r e n t c o m p a n i e s c o n t r o ll i n g su ch f o r e ig n b a n k s.
T h e f o r m w ill b e f i le d w ith th e F e d e r a l R e s e r v e S y s te m on an an n u a l
b a s is t h r e e m o n th s a f t e r th e en d o f th e f o r e i g n b an k h o ld in g c o m p a n y 's , f o r e i g n
b a n k 's , or f o r e i g n p a r e n t c o m p a n y 's f i s c a l y e a r .
F o r e ig n ba n k s th a t a re n o t ban k
h o ld in g c o m p a n ie s and f o r e ig n p a r e n t c o m p a n ie s c o n t r o ll i n g su ch f o r e ig n b a n k s sh a ll
f i l e t h e ir in itia l r e p o r t 120 d a y s a f t e r th e B oa rd a p p r o v e s th e p r o p o s e d r e p o r t .
I he
in itia l filin g by th e s e f o r e ig n o r g a n iz a t io n s sh a ll s e r v e as a R e g is t r a t io n S t a t e m e n t
w ith th e B o a rd .
T h e r e p o r t sh ou ld in c lu d e fin a n c ia l d a ta fo r o n e y e a r a s o f th e
la t e s t f i s c a l y e a r - e n d s u b s e q u e n t to th e a p p r o v a l d a te o f th e r e p o r t .
E x is tin g
f o r e i g n b a n k ' h o ld in g c o m p a n ie s t h a t h a v e t h e ir c u r r e n t f i s c a l y e a r - e n d on
O c t o b e r 31, 1 9 7 9 , or a f t e r w ill b e r e q u ir e d t o f ile th is r e p o r t in s te a d o f th e c u r r e n t
F .R . Y - 7 r e p o r t , b u t t h e s e c o m p a n ie s sh all h a v e an e x t e n s io n o f t im e to t ile th e ir
A n n u al R e p o r t u n til 120 d a y s a f t e r th e p r o p o s e d r e p o r t is a p p r o v e d by t h e B o a rd .
DATE:
C o m m e n t s m u st b e r e c e iv e d by J a n u a ry 4 , 1 9 8 0 .
ADDRESS:
C o m m e n t s m a y b e m a ile d to th e S e c r e t a r y , B o a rd o f G o v e r n o r s o r th e
F e d e r a l R e s e r v e S y s te m , W a s h in g to n , D .C . 2 0 5 5 1 , or d e liv e r e d to R o o m B -2 2 2 3 ,
B oa rd o f G o v e r n o r s , 2 0 th S tr e e t and C o n s t it u t io n A v e n u e , N .W ., W a s h in g to n , D .C .
20551.
C o m m e n t s sh ou ld r e f e r e n c e D o c k e t N o. R - 0 2 5 6 .
FOR FURTHER INFORMATION CONTACT:
S te p h e n M . L o v e t t e , F in a n c ia l A n a ly s t,
D iv is io n
of
B a n k in g
S u p e rv is io n
and
R e g u la t io n
( 2 0 2 - 4 5 2 - M2 a ),
or
K a th le e n M. O 'D a y , A t t o r n e y , L e g a l D iv is io n ( 2 0 2 - 4 5 2 -3 7 8 6 ) , B o a rd o f G o v e r n o r s o i
th e F e d e r a l R e s e r v e S y s te m .
-2 -
SUPPLEMENTARY INFORMATION:
In v ie w o f th e p a s s a g e o f th e In te r n a tio n a l
B a n k in g A c t (12 U .S .C . 3101 e t s e q .), th e g r o w t h o f f o r e i g n b a n k in g in th e U n ite d
S t a t e s , and th e B o a rd 's r e s p o n s ib ilit ie s u n der t h e Bank H o ld in g C o m p a n y A c t o f 1956
(12 U .S .C . 1341 e t s e q .), th e B o a rd is p r o p o s in g r e v is io n s to its A n n u a l R e p o r t o f
F o r e ig n Bank H o ld in g C o m p a n ie s (F .R . Y - 7 ) .
The p r o p o s e d r e p o r t is th e A n n u al
R e p o r t o f F o r e ig n Bank H o ld in g C o m p a n ie s , F o r e ig n B anks, and F o r e ig n P a re n t
C o m p a n ie s .
T h e B o a rd has u n d e r ta k e n a r e v ie w o f its s u p e r v is o r y and r e g u la t o r y
p o lic ie s
tow a rd
fo r e ig n
o r g a n iz a t io n s c o n d u c t in g
b a n k in g o p e r a t io n s in th e
U n ite d S t a t e s .
T h e B oa rd s ta t e d on F e b r u a r y 23, 1 9 7 9 , th a t in g e n e r a l it w o u ld
a d h e r e to th e p r in c ip le o f n a tio n a l t r e a t m e n t in a d m in is t e r in g th e B H C A c t and th e
IB A as th e y a f f e c t f o r e i g n b a n k s .
In g e n e r a l, f o r e i g n ba n k s s e e k in g to e s ta b lis h
b a n k s or o t h e r b a n k in g o p e r a t io n s in th e U n ite d S ta te s s h o u ld m e e t th e s a m e g e n e r a l
s ta n d a r d s o f s t r e n g t h , e x p e r i e n c e , and r e p u ta tio n as a re r e q u ir e d fo r d o m e s t ic
o r g a n iz e r s o f ban k s and ban k h o ld in g c o m p a n ie s . T h e B o a rd b e l ie v e s th a t f o r e i g n
b a n k s sh o u ld m e e t t h e s e sta n d a rd s o f s a f e t y and so u n d n e ss on a c o n t in u in g b a s is if
th e y a re t o b e a s o u r c e o f s tr e n g th to t h e ir U .5 . b a n k in g o p e r a t io n s . T h e F e d e r a l
F in a n c ia l In s titu tio n s E x a m in a tio n C o u n c il r e it e r a t e d th is p o s it io n on July 20, 1 9 7 9 .
T h e r e p o r t h a s b e e n r e v is e d to a ssu re th a t th e B oa rd o b t a in s s u f f i c i e n t
fin a n c ia l i n fo r m a t io n to a s s e s s th e fo r e ig n o r g a n iz a t io n 's c o n s o l i d a t e d o p e r a t io n s ,
g e n e r a l fin a n c ia l c o n d i t i o n , and a b ilit y to s e r v e as a c o n t in u in g s o u r c e o f s tr e n g th to
its U .S . b a n k in g o p e r a t io n s .
T h e p r o p o s e d r e p o r t w o u ld r e q u ir e th e s u b m is s io n o f
c o n s o l i d a t e d fin a n c ia l s t a t e m e n t s and a d is c u s s io n o f th e a c c o u n t in g p r a c t i c e s u sed
in t h e p r e p a r a t io n o f th e s t a t e m e n t s . In a d d it io n , th e r e p o r t w o u ld r e q u ir e s p e c i f i c
d is c lo s u r e o f e a r n in g s , r e s e r v e s , and loan loss e x p e r i e n c e .
F in a n c ia l s t a t e m e n t s
w o u ld b e r e q u e s t e d on m a t e r ia l f o r e ig n c o m p a n ie s and on a il U .S .
c o m p a n ie s in
w h ic h th e 'f o r e ig n ban k h o ld in g c o m p a n y , f o r e i g n b a n k , or f o r e i g n p a r e n t c o m p a n y
c o n t r o l s 25 p e r c e n t or m o r e o f th e r e s p e c t iv e c o m p a n y 's v o t in g s h a r e s . A c o m p a n y
w ill b e c o n s id e r e d " m a t e r i a l " w h en (a) th e s t a t e d in v e s t m e n t in and a d v a n c e s t o su ch
a c o m p a n y e x c e e d 5 p er c e n t o f th e s ta t e d c o n s o lid a t e d c a p it a l a c c o u n t s o f the
f o r e i g n ba n k h o ld in g c o m p a n y , f o r e i g n b a n k , or f o r e ig n p a r e n t c o m p a n y , or (b ) th e
c o m p a n y 's g r o s s o p e r a t in g i n c o m e or r e v e n u e e x c e e d s 5 p e r c e n t o f th e s t a t e d
c o n s o l i d a t e d g r o s s o p e r a t in g in c o m e or r e v e n u e o f th e f o r e i g n b an k h o ld in g
c o m p a n y , f o r e i g n b a n k , or f o r e i g n p a r e n t c o m p a n y , or (c ) th e c o m p a n y s o p e r a t io n s
r e s u lt e d in n e t i n c o m e or a n e t lo ss e x c e e d i n g 5 per c e n t o f s t a t e d c o n s o l i d a t e o n e t
in c o m e o f th e f o r e ig n b an k h o ld in g c o m p a n y , f o r e ig n b a n k , or fo r e ig n p a r e n t
com pan y.
T h e p r o p o s e d f o r m r e q u ir e s in fo r m a t io n on U .S . a c t i v i t i e s and U .S.
in v e s t m e n t s o f f o r e i g n b an k h o ld in g c o m p a n ie s , f o r e ig n b a n k s, and fo r e ig n p a r e n t
c o m p a n ie s in o r d e r t o d e t e r m in e c o m p l i a n c e w ith th e B H C A c t and th e IB A . The
p r o v is io n s o f th e BH C A c t h a v e a lw a y s a p p lie d to th e o p e r a t io n s o f f o r e ig n ba n k
h o ld in g c o m p a n ie s .
T h e a c t i v i t i e s o f f o r e i g n ban k s c o n d u c t in g U .S . o a n k in g
o p e r a t io n s th r o u g h a b r a n c h , a g e n c y , or c o m m e r c i a l le n d in g c o m p a n y , and n o t
th r o u g n a U .S . s u b s id ia r y b a n k , h a v e r e c e n t ly c o m e u n der r e g u la t io n by th e B o a rd .
T h e IB A , th r o u g h S e c t io n 8 , s u b je c t s f o r e ig n ban k s w ith a U .S . b r a n c h , a g e n c y , or
c o m m e r c i a l le n d in g c o m p a n y , as d e fin e d in th e IB A , and c o m p a n ie s c o n t r o ll i n g su ch
f o r e i g n ban k s to c e r t a in p r o v is io n s o f th e BH C A c t and to S e c t io n s 105 and 1 j 6 o f
th e 1970 A m e n d m e n t s to th e B H C A c t .
T h e F .R . Y - 7 f o c u s e s in d e t a il upon th e U .S. a c t i v i t i e s and U .S .
in v e s t m e n t s o f t h e s e f o r e i g n o r g a n iz a t io n s .
P rior to th e e n a c t m e n t o f -h e IB A ,
S e c t io n 2(h ) o f th e B H C A c t e x e m p t e d fr o m th e n o n b a n k in g p r o h ib it io n s o f th e B H C
-3-
A c t th e f o r e i g n n o n b a n k in g a c t i v i t i e s and in v e s tm e n ts o f a ban k h o ld in g c o m p a n y
p r in c ip a lly e n g a g e d in b a n k in g o u t s id e th e U n ite d S ta te s , p r o v id e d th a t th e f o r e i g n
n o n b a n k in g c o m p a n ie s e n g a g e d in no b u sin ess in th e U n ite d S t a t e s .
T h e IB A
a m e n d e d th e BH C A c t to a llo w su ch c o m p a n ie s and th e ir p a r e n t c o m p a n ie s to
e n g a g e , u n der c e r t a i n c i r c u m s t a n c e s , in s o m e n o n b a n k in g a c t i v i t i e s in th e
U n ite d S t a t e s . A s a r e s u lt, d e t a ile d in fo r m a t io n is r e q u e s t e d on U .S . a c t i v i t i e s and
in v e s t m e n t s in o r d e r t o d e t e r m in e th e e x t e n t o f th e a c t i v i t i e s th a t a re c o n d u c t e d in
th e U n ite d S t a t e s .
T h e r e p o r t w ill a ls o c o l l e c t in fo r m a t io n on s h a r e h o ld e r s ,
d i r e c t o r s , and e x e c u t i v e o f f i c e r s fo r u se in th e e x a m in a t io n o f th e U .S . b a n k in g
o p e r a t io n s and w ill p r o v id e d a ta n e c e s s a r y to e n su re th a t th e U .S . o p e r a t io n s a r e
b e in g c o n d u c t e d in a s a fe and p r u d e n t m a n n e r.
In r e q u e s t in g th e in f o r m a t io n , th e B o a rd h as in d ic a t e d th a t in th e
h a n d lin g o f th e i n f o r m a t io n , it w o u ld b e ta k e n in to a c c o u n t th a t m u ch o f th e
r e q u e s t e d in fo r m a t io n m a y b e c o n f id e n t i a l c o m m e r c i a l in f o r m a t io n th a t is n o t
g e n e r a lly d i s c l o s e d , W ith r e s p e c t to in fo r m a t io n c o n t a in e d in S e c t io n s I and II o f th e
r e p o r t , p u b lic c o m m e n t is in v ite d on th e d e s ir a b ilit y o f r e q u ir in g r e p o r t in g
o r g a n iz a t io n s to ju s t ify r e q u e s ts f o r c o n f id e n t i a l t r e a t m e n t o f in fo r m a t io n a t th e
t im e o f f ilin g th e r e p o r t o r a t th e t im e a r e q u e s t fo r su ch in fo r m a t io n is r e c e i v e d .
C o m m e n t s a r e so u g h t n o t o n ly on th e g e n e r a l c h a r a c t e r i s t i c s o f th e
p r o p o s e d r e p o r t , b u t a lso on th e s p e c i f i c d e t a ils and t r e a t m e n t o f th e it e m s . A d r a f t
o f th e r e p o r t fo r m is p r e s e n t e d in A t t a c h m e n t A .
A t t e n t io n is a ls o c a l le d to th e
f o l lo w i n g f e a t u r e s o f th e r e p o r t .
T ie r e d f o r e i g n o r g a n iz a t i o n s . In th e r e p o r t in g r e q u ir e m e n t s fo r th e p r o p o s e d r e p o r t ,
e a c h f o r e ig n ban k h o ld in g c o m p a n y , e a c h f o r e ig n b a n k , and e a c h fo r e ig n p a r e n t
c o m p a n y is r e q u ir e d to s u b m it a s e p a r a t e r e p o r t .
C o m m e n t s a re s p e c i f i c a l l y
s o l i c i t e d w ith r e s p e c t to w a y s o f r e d u c in g th e r e p o r tin g bu rd en o f th is r e q u ir e m e n t
on th o s e f o r e i g n o r g a n iz a t io n s th a t a re m e m b e r s o f a t ie r e d o r g a n iz a t io n . A t ie r e d
o r g a n iz a t io n o c c u r s w h en a ba n k h o ld in g c o m p a n y in d ir e c t ly c o n t r o ls a U .S .
s u b s id ia r y ban k th ro u g h a n o th e r ban k h o ld in g c o m p a n y th a t d i r e c t l y h o ld s th e s h a re s
o f th e U .S . su b s id ia ry bank or w h en a f o r e ig n p a r e n t c o m p a n y d i r e c t l y c o n t r o ls th e
s h a r e s o f a f o r e i g n ba n k .
P r in c ip le s fo r c o n s o lid a t e d fin a n c ia l s t a t e m e n t s .
T h e r e p o r t r e q u e s t s th a t th e
f o r e i g n ban k h o ld in g c o m p a n y , fo r e ig n b a n k , or f o r e ig n p a r e n t c o m p a n y s u b m it
c o n s o l i d a t e d fin a n c ia l s t a t e m e n t s c o v e r i n g th e last t w o f i s c a l y e a r s . T h e p r o p o s a l
ask s fo r a d e s c r ip t io n o f th e a c c o u n t in g p r in c ip le s u se d in th e p r e p a r a t io n o f th e
s t a t e m e n t s , b u t d o e s n o t im p o s e an y u n ifo r m c r i t e r i a fo r c o n s o lid a t in g ail m a jo r i t y o w n e d in v e s t m e n t s on a l in e - b y - l in e b a s is . C o m m e n t s a re s o l i c i t e d w ith r e s p e c t to
im p o s in g
m in im u m
c r it e r ia
fo r
c o n s o lid a t io n ,
in c lu d in g
su g g ested
t e s t s fo r
m a t e r ia lit y and o th e r ru le s on th e a p p r o p r ia t e le v e l o f c o n s o l i d a t i o n .
R e p o r t in g on m in o r it y -o w n e d in v e s t m e n t s and in v e s t m e n t s th a t a re in d ir e c t ly
ow ned.
T he p r o p o s e d r e p o r t r e q u e s ts d e t a ile d in fo r m a t io n on a ll in v e s t m e n t s in
c o m p a n ie s o r g a n iz e d u n der th e la w s o f th e U n ite d S ta te s and c o m p a n ie s o r g a n iz e d
u n der th e la w s o f fo r e ig n c o u n t r ie s th a t d o b u sin e ss in th e U n ite d S t a t e s .
F o r e ig n
ban k h o ld in g c o m p a n ie s , f o r e i g n b an k s, and f o r e i g n p a r e n t c o m p a n ie s a re r e q u e s t e d
to p r o v id e th e n a m e s , lo c a t io n s , b u sin e ss a c t i v i t i e s , and fin a n c ia l d a ta on a ll su ch
c o m p a n ie s in w h ich th e ir d i r e c t or in d ir e c t o w n e r s h ip e x c e e d s 3 p er c e n t .
The
a b s e n c e o f an y m a t e r ia lit y c r i t e r i a is b a s e d upon th e s t a t u t e s . In r e c o g n it io n o f th e
-4 -
b u r d e n in
co m m e n ts
r e p o r t i n g m i n o r it y - o w n e d in v e s t m e n t s and o t h e r i n d i r e c t in v e s tm e n ts *
a r e r e q u e s t e d o n 'a l t e r n a t i v e r e p o r t in g p r o c e d u r e s th a t w o u ld p r o v id e
s u f f i c i e n t d e t a i l t o e n s u r e c o m p l i a n c e w ith th e s t a t u t e s .
A lt e r n a t iv e m e t h o d s o f r e p o r t in g e a rn in g s * r e s e r v e s , an d lo a n l o s s e s . R e p o r t Ite m s
2, 3, 4 , and 5 in S e c t i o n II d e s c r i b e a
f o r m a t f o r fu ll d i s c l o s u r e o f e a r n in g s ,
r e s e r v e s , and loa n loss e x p e r i e n c e a s r e q u ir e d by B o a rd p o l i c y .
C o m m e n t s a re
s o l i c i t e d on r e p o r t in g a l t e r n a t i v e s t h a t w o u ld p o s e le s s b u rd e n u p on th e f o r e i g n b a n k
h o ld in g c o m p a n y , f o r e i g n bank* or f o r e i g n p a r e n t c o m p a n y .
B o a rd o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m , O c to b e r 2 9 ,
1979.
(S E A L )
(s ig n e d ) T h e o d o r e E. A llis o n
T h e o d o r e E. A llis o n
S e c r e t a r y o f th e B o a r d
A tta ch m en t A
F .R . Y - 7
A p p r o v e d by th e F e d e r a l R e s e r v e B o a rd ,
A p p r o v a l e x p ir e s
1 0 /2 5 /7 9 - 1 1
B O A R D O F G O V E R N O R S O F TH E F E D E R A L R E S E R V E SY S T E M
W a s h in g to n , D . C .
20551
A N N U A L R E P O R T O F F O R E IG N B A N K H O L D IN G C O M P A N IE S ,
F O R E IG N B A N K S , A N D F O R E IG N P A R E N T C O M P A N IE S
F or th e f i s c a l y e a r e n d in g o n ______________________________________ , 19
N a m e o f f o r e ig n bank h o ld in g c o m p a n y , f o r e ig n b a n k , or fo r e ig n p a r e n t c o m p a n y :
L o c a t io n o f h ea d o f f i c e :
N a m e and l o c a t io n o f a g e n t in th e U n ite d S ta te s :
I,__________________________ ________
N am e
_____________________________
T it le
an a u t h o r iz e d o f f i c e r or a g e n t o f th e c o m p a n y n a m e d a b o v e , h e r e b y d e c la r e th a t
th is r e p o r t h as b e e n e x a m in e d by m e and is tr u e and c o m p l e t e to th e b e s t o f m y
k n o w le d g e and b e l i e f .
S ig n a tu re
D a te
N a m e , t i t l e , and p h o n e n u m b e r o f p e r s o n to w h o m q u e s tio n s r e la t e d to th is r e p o r t
m ay b e d ir e c te d :
N am e
A rea C od e
T it le
P h on e N u m b e r
This r e p o r t is r e q u ir e d by S e c t io n 2 2 5 .5 (b ) o f R e g u la t io n Y (12 C .F .R . 2 2 5 .5 (b )) as
a u t h o r iz e d by S e c t io n 5 (c ) o f th e Bank H o ld in g C o m p a n y A c t (12 U .S .C .
1844) and
S e c t io n 8 and 13(a) o f th e I n te r n a tio n a l B an k in g A c t o f 1978 (12 U .S .C . 3 1 0 8 ).
G E N E R A L IN S T R U C T IO N S
R e p o r t F .R . Y - 7
Who m ust report
T h e A n n u a l R e p o r t o f F o r e ig n Bank H o ld in g C o m p a n ie s , F o r e ig n B an k s, and F o r e ig n
P a r e n t C o m p a n ie s (F .R . Y - 7 ) is r e q u ir e d to b e file d by c o m p a n ie s o r g a n iz e d u n d er th e
la w s o f a f o r e i g n c o u n t r y and e n g a g e d in th e b u sin e ss o f b a n k in g in th e U n ite d S ta te s
th r o u g h a b a n k , a c o m m e r c i a l le n d in g c o m p a n y , a b r a n c h or an a g e n c y .
T h e r e p o r t m u st b e s u b m itte d by e a c h :
I
1)
Bank h o ld in g c o m p a n y , a s d e fin e d by S e c t io n 2 (a ) o f Bank H o ld in g C o m p a n y
A c t o f 1956 (B H C A c t ) , th a t is o r g a n iz e d u n d er th e la w s o f a f o r e i g n
c o u n t r y and is d e fin e d a s a ’’ f o r e i g n ban k h o ld in g c o m p a n y ” by S e c t io n
2 2 5 .4 (g ) o f R e g u la t io n Y ;
2)
F o r e ig n b a n k , as d e f in e d by S e c t io n 1 (b )(7 ) o f th e In te r n a tio n a l B a n k in g A c t
o f 1978 (IB A ), t h a t m a in ta in s a b r a n c h or a g e n c y in a S ta te o f th e U n ite d
S t a t e s or th e D i s t r i c t o f C o lu m b ia a n d /o r c o n t r o l s a c o m m e r c i a l le n d in g
c o m p a n y o r g a n iz e d u n d er th e la w s o f an y S ta te in th e U n ite d S ta te s ;
3)
C o m p a n y , a s d e fin e d by S e c t io n 2 (b ) o f th e B H C A c t , th a t o w n s , c o n t r o ls ,
o r h o ld s w ith p o w e r to v o t e 25 p e r c e n t or m o r e o f th e o u ts ta n d in g v o t in g
s e c u r i t ie s , or o t h e r w is e c o n t r o l s , a s d e fin e d by S e c t io n 2 o f th e B H C A c t ,
su ch f o r e i g n ban k r e q u ir e d to f ile u n d e r (2) a b o v e .
A b an k h o ld in g c o m p a n y , f o r e i g n b a n k , or c o m p a n y th a t is r e q u ir e d
r e p o r t w ill h e r e in b e r e f e r r e d to as " R e p o r t i n g O r g a n iz a t io n .”
to s u b m it th e
Tim e and p lace o f filin g
T h e r e p o r t m u st b e file d n o t la te r th a n t h r e e m o n th s a f t e r th e en d o f th e R e p o r t in g
O r g a n iz a t io n 's f i s c a l y e a r e n d . A r e q u e s t fo r an e x t e n s io n o f t im e to f ile th e r e p o r t
w ill o n ly b e g r a n te d in e x t r e m e c i r c u m s t a n c e s .
F o r e ig n b a n k h o ld in g c o m p a n ie s sh o u ld f ile th e o r ig in a l and th r e e c o p i e s o f th e r e p o r t
w ith th e F e d e r a l R e s e r v e Bank o f th e D i s t r i c t in w h ich th e o p e r a t io n s a re p r in c ip a lly
c o n d u c t e d , as m e a s u r e d by t o t a l d e p o s it s h e ld or c o n t r o l l e d by it on th e d a t e on w h ic h
it b e c a m e a ban k h o ld in g c o m p a n y . T h is in c lu d e s a f o r e i g n bank as d e fin e d by S e c t io n
1 (b )(7 ) o f IB A th a t o w n s , c o n t r o l s , or h o ld s w ith p o w e r to v o t e 25 p e r c e n t or m o r e o f
a n y c la s s o f v o t in g s e c u r i t ie s , or o t h e r w is e c o n t r o ls a bank th a t is o r g a n iz e d u n der th e
la w s o f th e U n ite d S t a t e s , an y S ta te o f th e U n ite d S ta te s , th e D is t r ic t o f C o lu m b ia ,
a n y t e r r i t o r y o f th e U n ite d S ta te s , P u e r to R i c o , G u a m , A m e r ic a n S a m o a , or th e U .S.
V irgin Isla n d s.
F o r e ig n ban k s w ith U .S . b r a n c h e s , a g e n c ie s , or c o m m e r c i a l le n d in g c o m p a n ie s and
f o r e i g n c o m p a n ie s c o n t r o ll i n g su ch f o r e ig n ban k s sh o u ld f ile an o r ig in a l and th r e e
c o p ie s
of
th e
report
w ith
th e
F ederal
R eserve
- 2 -
Bank o f
th e
D i s t r i c t in w h ich
th e
o p e r a t io n s a re
p r in c ip a lly c o n d u c t e d , a s m e a s u r e d
by t o t a l U .S . b a n k in g a s s e t s .
f o r e i g n ban k th a t ow n s a U .S. b a n k sh all f ile as a f o r e ig n
a c c o r d a n c e w ith th e p rio r in s t r u c t io n s .
b an k h o ld in g c o m p a n y
A
in
Incorporation by referen ce
In o r d e r to m in im iz e r e p o r t in g b u rd e n , in c o r p o r a t io n o f fin a n c ia l r e p o r t s p r e p a r e d fo r
o th e r r e g u la t o r y a g e n c ie s or fo r in te r n a l r e p o r t in g r e q u ir e m e n t s is p e r m i t t e d in
r e s p o n s e to c e r t a i n ite m s a s s p e c i f i e d in th e r e p o r t it e m s .
W hen r e f e r r in g to su ch
r e p o r t s , th e r e s p o n s e to a s p e c i f i c r e p o r t it e m sh o u ld c l e a r ly r e f e r e n c e th e lo c a t io n o f
th e r e le v a n t d a ta w ith in t h o s e r e p o r t s .
C on fiden tiality
T he r e p o r t is c o m p o s e d o f tw o s e c t i o n s . S e c t io n I o f th e r e p o r t w ill b e m a d e a v a ila b le
to th e p u b lic upon r e q u e s t .
If th e R e p o r t in g O r g a n iz a t io n is o f th e o p in io n th a t
d is c lo s u r e o f c o m m e r c i a l or f in a n c ia l in f o r m a t io n in S e c tio n I w o u ld Likely r e s u lt in
s u b s ta n tia l c o m p e t i t i v e h a rm , or th a t d is c lo s u r e o f i n fo r m a t io n o f a p e r s o n a l n a tu r e
w o u ld r e s u lt in a c l e a r ly u n w a r r a n te d in v a s io n o f p e r s o n a l p r iv a c y , c o n f id e n t i a l
t r e a t m e n t o f su ch in fo r m a t io n m a y b e r e q u e s t e d th ro u g h th e R e s e r v e Bank to w h ic h
th e r e p o r t is s u b m it t e d .
A r e q u e s t fo r c o n f id e n t i a l t r e a t m e n t m u st b e s u b m it t e d in
w r itin g c o n c u r r e n t ly w ith th e s u b m is s io n o f th e r e p o r t and m u st p r o v id e a d e t a ile d
ju s t if i c a t i o n fo r c o n f id e n t i a l t r e a t m e n t o f s p e c i f i c it e m s . Such ju s t if i c a t i o n m u st b e
p r o v id e d f o r e a c h re s p o n s e f o r w h ic h c o n f id e n t i a l t r e a t m e n t is r e q u e s t e d and sh o u ld
d e m o n s t r a t e th e h arm t h a t w o u ld r e s u lt fr o m p u b lic r e le a s e o f th e in f o r m a t io n . An
u n s u p p o r te d s t a t e m e n t t h a t th e i n fo r m a t io n w o u ld re su lt in c o m p e t i t i v e harm or th a t
it is p e r s o n a l in n a tu r e is n o t s u f f i c i e n t .
S im ila r ly , a c la im th a t d is c lo s u r e w o u ld
v io l a t e th e law or p o lic y o f a fo r e ig n c o u n t r y m a y n o t, in and o f i t s e l f , b e s u f f i c i e n t to
e x e m p t in fo r m a t io n fr o m d is c lo s u r e .
H o w e v e r , if it ca n b e d e m o n s t r a t e d to th e
s a t i s f a c t i o n o f th e F e d e r a l R e s e r v e B o a rd th a t d is c lo s u r e w o u ld m e e t e it h e r th e
" s u b s t a n t ia l c o m p e t i t i v e h a r m " or "u n w a r r a n te d in v a s io n o f p e r s o n a l p r i v a c y " t e s t , th e
in f o r m a t io n m a y b e e x e m p t e d .
I n fo r m a tio n in S e c t io n I o f
c o n f id e n t i a l t r e a t m e n t is r e q u e s t e d sh ou ld b e (1 ) r e p o r t e d
d o c u m e n t la b e le d " C o n f i d e n t i a l ," and (2) s p e c i f i c a l l y i d e n t if ie d
b e e n d e le t e d and d e e m e d to b e c o n f id e n t i a l. This p r o c e d u r e
w ith r e s p e c t to th e filin g o f any s u p p le m e n ta l i n fo r m a t io n
th e r e p o r t fo r w h ic h
in a s e p a r a t e ly bou n d
in th e r e p o r t as h a v in g
sh o u ld a ls o b e f o l lo w e d
or a m e n d m e n t s to th e
re p o rt.
S e c t io n II o f th e Y - 7 r e p o r t w ill o r d in a r ily b e g r a n te d c o n f id e n t i a l t r e a t m e n t by th e
B oa rd o f G o v e r n o r s . T he in fo r m a t io n r e q u e s t e d in S e c t io n II o f th e r e p o r t w ill b e u sed
in e v a lu a t in g th e s a f e t y and so u n d n e ss o f U .S . b r a n c h e s , a g e n c ie s or s u b s id ia r y ban k s
and f o r d e t e r m in in g t h e ir c o m p l i a n c e w ith a p p lic a b le la w s . In o r d e r to a s s is t in th e
e x a m in a t io n o f t h e s e in s t it u t io n s , th e B oa rd o f G o v e r n o r s m a y , fr o m t im e to t im e ,
m a k e a v a ila b le to o th e r s u p e r v is o r y a g e n c ie s c e r t a in i n fo r m a t io n o b t a in e d fr o m
S e c t io n II.
It is a n t ic ip a t e d th a t th e in fo r m a t io n w ili b e g r a n te d c o n f i d e n t i a l i t y by
t h e s e a g e n c ie s on th e s a m e b a s is and to th e s a m e e x t e n t th a t th e B o a rd g r a n ts
c o n fid e n t ia lit y .
- 3-
Substitution o f inform ation
W h e re c o m p l e t i o n o f th e r e q u e s t e d in fo r m a t io n or s t r i c t c o m p l i a n c e w ith th e
r e q u ir e m e n t s o f th e r e p o r t in v o lv e s u n du e bu rd en or e x p e n s e to th e R e p o r t in g
O r g a n iz a t io n , th e B oa rd o f G o v e r n o r s m a y , upon r e c e i p t o f a w r it t e n r e q u e s t
s u b m it t e d th r o u g h th e F e d e r a l R e s e r v e Bank p r io r t o th e filin g o f th e Y - 7 r e p o r t ,
p e r m it th e s u b s titu tio n o f a p p r o p r ia t e in fo r m a t io n .
Additional inform ation
T h e B oa rd o f G o v e r n o r s r e s e r v e s th e r ig h t to r e q u ir e th e filin g o f a d d it io n a l
s t a t e m e n t s and i n fo r m a t io n if th e r e p o r t as file d is n o t a d e q u a te to a p p r a is e th e
R e p o r t i n g O r g a n iz a t io n 's a b ilit y to b e a s o u r c e o f fin a n c ia l s tr e n g th and s u p p o r t to th e
U .S . s u b s id ia ry ban k , b r a n c h , a g e n c y , or c o m m e r c i a l le n d in g c o m p a n y , or to d e t e r m in e
its c o m p l i a n c e w ith a p p lic a b le la w s and r e g u la t io n s .
S E C T IO N I
R eport Item 1: Financial S tatem en ts o f the R eporting O rganization
A)
S u b m it c o n s o l i d a t e d and p a r e n t - o n ly f in a n c ia l s t a t e m e n t s c o v e r i n g th e last
tw o f i s c a l y e a r s th a t in c lu d e or a re e q u iv a le n t t o :
1)
B a la n c e s h e e t s ;
2)
In co m e s ta te m e n ts ;
3)
S t a t e m e n t s o f c h a n g e s in c a p i t a l a c c o u n t s ;
4)
S t a t e m e n t s o f c h a n g e s in fin a n c ia l p o s it io n .
The f in a n c ia l s t a t e m e n t s sh o u ld b e s ta t e d in b o th th e l o c a l c u r r e n c y o f th e
c o u n t r y in w h ic h th e h e a d o f f i c e is l o c a t e d and in U .S . d o lla r s , d is c lo s in g
th e a p p l ic a b l e c o n v e r s io n r a t e s . T he s t a t e m e n t s m a y b e p r e p a r e d in
a c c o r d a n c e w ith l o c a l a c c o u n t i n g p r a c t i c e s ; h o w e v e r , an e x p la n a t io n o f th e
a c c o u n t in g s ta n d a r d s u sed in th e p r e p a r a t io n o f th e fin a n c ia l s t a t e m e n t s
m u st b e p r o v id e d . This e x p la n a t io n sh o u ld in c lu d e a d is c u s s io n o f th e
f o l lo w i n g p r a c t i c e s and any o th e r m a t e r ia l p r a c t i c e s as d e t e r m in e d by th e
R e p o r t in g O r g a n iz a t io n .
a)
T h e a c c o u n t i n g p r in c ip le s u sed in th e p r e p a r a t io n o f c o n s o l i d a t e d
f in a n c ia l s t a t e m e n t s : C o m m e n t s s h o u ld a d d r e s s th e m e t h o d by w h ic h
th e m a jo r i t y - o w n e d c o m p a n ie s a re c o n s o l i d a t e d on a l in e - b y - l in e
b a s is and t h e b a s is fo r th e c a r r y in g v a lu e and m a n n e r o f in c o m e
r e c o g n i t i o n o f an y m a jo r it y - o w n e d s u b s id ia r ie s th a t a re n o t c o n s o l i
d a te d on a l in e - b y - l in e b a s is .
T h e m e th o d o f v a lu a t io n o f th e
in v e s t m e n t s in w h ich th e R e p o r t in g O r g a n iz a t io n o w n s b e t w e e n 20
p er c e n t and 50 p e r c e n t , i .e ., h is t o r ic c o s t , n e t a s s e t v a lu e , m a r k e t
v a lu e , or a p p r a is e d v a lu e
in c o m e s h o u ld b e in c lu d e d .
b)
and
th e
m anner
of
th e
r e c o g n itio n
of
T h e a c c o u n t i n g p r a c t i c e used in th e v a lu a tio n — i .e ., h is t o r ic c o s t ,
n et a s s e t v a lu e , m a r k e t v a lu e , or a p p r a is e d v a lu e — o f s h o r t - t e r m
in v e s t m e n t s ,
lo n g -te r m
in v e s t m e n t s ,
and
f ix e d
a ssets:
The
c o m m e n t s sh o u ld d i s c l o s e th e m a n n e r o f th e r e c o g n it io n o f i n c r e a s e s
a n d /o r d e c r e a s e s in th e v a lu e o f th e a s s e t s .
c)
T n e r e c o r d in g o f g u a r a n t e e s , l e t t e r s o f c r e d i t , c o n t i n g e n c i e s , le a s e s ,
p e n s io n o b l ig a t i o n s , and o th e r s im ila r a c c o u n t s on th e b o o k s o f th e
R e p o r t in g O r g a n iz a t io n :
T h e e x p la n a tio n sh o u ld in d ic a t e w h e th e r
su ch a c c o u n t s a r e c a r r ie d as a s s e ts a n d /o r l ia b ilit ie s on th e
R e p o r t in g O r g a n iz a t io n 's f in a n c ia l s t a t e m e n t s or a re d is c lo s e d as
f o o t n o t e s to th e fin a n c ia l s t a t e m e n t s .
d)
The
m e th o d
u t iliz e d
in th e
t r a n s la t in g o f
fo r e ig n
cu rren cy
t r a n s a c t io n s and fo r e ig n c u r r e n c y fin a n c ia l s t a t e m e n t s w ith r e s p e c t
to c u r r e n t a s s e t s , l o n g - t e r m in v e s t m e n t s , f i x e d a s s e t s , l o n g - t e r m
d e b t , and fo r w a r d e x c h a n g e c o n t r a c t s :
T h e d is c u s s io n sh o u ld a ls o
in c lu d e th e m e th o d o f r e c o g n it io n o f an y g a in s or lo s s e s r e s u ltin g
fr o m su ch tr a n s la tio n and th e e f f e c t o f th e tr a n s la tio n u pon th e
r e c o g n it io n o f r e v e n u e and e x p e n s e and th e d e t e r m in a t io n o f n e t
in c o m e .
W hen th e s p e c i f i c in fo r m a t io n r e q u e s t e d in th is r e p o r t it e m is p r e s e n t e d in
th e a n n u al r e p o r t to s h a r e h o ld e r s s u b m it t e d in r e s p o n s e t o R e p o r t Ite m IB ,
th e r e s p o n s e s to th is it e m m a y in c o r p o r a t e th e i n fo r m a t io n in th e
s h a r e h o ld e r s ' r e p o r t by r e f e r e n c in g its lo c a t io n w ith in th e r e p o r t .
B)
S u b m it a c o p y o f th e m o s t r e c e n t an n u a l r e p o r t
p r e p a r e d f o r th e
s h a r e h o ld e r s o f th e R e p o r t in g O r g a n iz a t io n .
T he r e p o r t sh o u ld b e
a c c o m p a n ie d by an E n glish tr a n s la tio n .
R eport Item 2: Financial S tatem en ts of R elated Com panies
A)
F or
e a c h c o m p a n y , o r g a n iz e d
under th e la w s o f th e U n ite d S t a t e s , o t h e r
th a n a U .S . b a n k , c o m m e r c i a l le n d in g c o m p a n y , or a c o m p a n y a c q u ir e d
p u rs u a n t to S e c t io n 25 or S e c tio n 2 5 (a ) o f th e F e d e r a l R e s e r v e A c t (E d g e
and A g r e e m e n t C o r p o r a t io n s and th e ir in v e s t m e n t s ), th a t th e R e p o r t in g
O r g a n iz a t io n
d ir e c tly
or
in d ir e c t ly
th ro u g h a n o th e r c o m p a n y o w n s ,
c o n t r o l s , or h o ld s w ith p o w e r to v o t e 25 p e r c e n t or m o r e o f th e s h a re s or
t h e ir e q u iv a le n t , or o t h e r w is e c o n t r o ls , s u b m it fin a n c ia l s t a t e m e n t s
c o v e r i n g th e la st tw o f i s c a l y e a r s th a t in c lu d e :
1)
B a la n c e s h e e t s ;
2)
In com e s ta te m e n ts;
3)
S t a t e m e n t s o f c h a n g e s in c a p it a l a c c o u n t s .
Such s t a t e m e n t s n e e d n o t b e c e r t i f i e d by a p u b lic a c c o u n t a n t , b u t th e y
sh o u ld b e p r e p a r e d in a c c o r d a n c e w ith g e n e r a lly a c c e p t e d a c c o u n t in g
p r in c ip le s a s p r a c t i c e d in th e U n ite d S t a t e s , and s ta t e d in U .S . d o lla r s . In
lie u o f s u b m ittin g s e p a r a te s t a t e m e n t s fo r e a c h U .S . r e la t e d c o m p a n y ,
c o n s o l i d a t e d fin a n c ia l s t a t e m e n t s o f r e la t e d U .S. c o m p a n ie s m a y b e
- 5 -
p r e s e n t e d th a t c o n s o l i d a t e su ch a r e la t e d U .S . c o m p a n y and its d i r e c t and
i n d ir e c t m a jo r it y o w n e d U .S . in v e s t m e n t s on a l in e - b y - l in e b a s is .
Any
c o n s o l i d a t e d s t a t e m e n t t h a t is s u b m itte d sh ou ld in d ic a t e th e n a m e and th e
l o c a t io n o f th e h ea d o f f i c e o f e a c h c o m p a n y c o n s o l i d a t e d w ith in th e
fin a n c ia l s t a t e m e n t .
B)
F or e a c h c o m p a n y , o r g a n iz e d u n der th e la w s o f a f o r e i g n c o u n t r y , a
t e r r i t o r y o f th e U n ite d S t a t e s , P u e r to R i c o , G u a m , A m e r ic a n S a m o a , or th e
U .S . V irg in Isla n d s, t h a t th e R e p o r t in g O r g a n iz a t io n d i r e c t l y or in d ir e c t ly
o w n s , c o n t r o l s , or h o ld s w ith p o w e r to v o t e 25 p e r c e n t or m o r e o f th e
s h a r e s , or
sta te m e n ts
t h e ir e q u iv a le n t ,
c o v e r i n g th e la st
o r o t h e r w is e c o n t r o l s , s u b m it f in a n c ia l
tw o f i s c a l y e a r s th a t in c lu d e o r a re th e
e q u iv a le n t t o :
1)
B a la n c e s h e e t s ;
2)
I n c o m e s t a t e m e n t s ; and
3)
S t a t e m e n t o f c h a n g e s in c a p it a l a c c o u n t s ,
o n ly w h en su ch c o m p a n y is a c o m p a n y in w h ic h (a) th e s ta t e d in v e s t m e n t in
and a d v a n c e s to su ch a c o m p a n y e x c e e d 5 p er c e n t o f th e s t a t e d
c o n s o l i d a t e d c a p i t a l a c c o u n t s o f th e R e p o r t in g O r g a n iz a t io n , o r (b) th e
c o m p a n y 's g ro s s o p e r a t in g in c o m e or r e v e n u e e x c e e d s 5 p er c e n t o f th e
s t a t e d c o n s o l i d a t e d g r o s s o p e r a t in g in c o m e or r e v e n u e s o f th e R e p o r t in g
O r g a n iz a t io n , or ( c ) th e c o m p a n y 's o p e r a t io n s r e s u lte d in n e t in c o m e or a
n et loss e x c e e d i n g 5 p e r c e n t o f s t a t e d c o n s o l i d a t e d n e t i n c o m e o f th e
R e p o r t in g O r g a n iz a t io n .
T h e fin a n c ia l s t a t e m e n t s sh o u ld b e s t a t e d
a p p l ic a b l e , and in U .S . d o lla r s , d is c lo s in g th e
m a y b e p r e p a r e d in a c c o r d a n c e w ith l o c a l
e x p la n a t io n o f th e l o c a l a c c o u n t in g sta n d a rd s
in b o th l o c a l c u r r e n c y , w h en
c o n v e r s io n r a t e s . T he r e p o r t s
a c c o u n t in g p r a c t i c e s , b u t an
u se d in th e p r e p a r a t io n o f th e
f in a n c ia l s t a t e m e n t s m u st b e p r o v id e d .
R eport Item 3: Inform ation on the d irect a c tiv itie s conducted in the United S ta te s
by the R eporting O rganization and a Schedule of Investm ents in U.S. Financial Institutions
S u b m it in fo r m a t io n on S c h e d u le A (P a g e 9) co n ce rn in g ^ th e U .S. b u s in e s s
a c t i v i t i e s c o n d u c t e d d i r e c t l y by th e R e p o r t in g O r g a n i z a t i o n s and th e R e p o r t in g
O r g a n iz a t io n 's
U .S . b a n k (s ), c o m m e r c i a l
le n d in g c o m p a n i e s ,
E d ge
a n d /o r
A g r e e m e n t C o r p o r a t io n s , o th e r th an t h o s e h e ld as a r e s u lt o f a d e b t p r e v io u s ly
c o n t r a c t e d or h eld in a fid u c ia r y c a p a c i t y .
T7
7 h e te r m " e n g a g e d ” in b u sin e ss in th e U n ite d S t a t e s ” m e a n s m a in ta in in g and
o p e r a t in g an o f f i c e (o th e r th a n a r e p r e s e n t a t iv e o f f i c e ) or s u b s id ia ry in th e
U n ite d S t a t e s .
R e g u la t io n K (12 C F R P A R T 2 1 1 ).
- 6 -
Report Item 4: Schedule of Investments in Related Companies
S u b m it in fo r m a t io n on a s e p a r a t e S c h e d u le 3 (P a g e 11) f o r :
A)
e a c h c o m p a n y o r g a n iz e d u n der th e la w s o f th e U n ite d S t a t e s , e x c e p t th o s e
r e p o r t e d on S c h e d u le A , th a t th e R e p o r t in g O r g a n iz a t io n d i r e c t l y or
in d ir e c t ly o w n s , c o n t r o ls , or h o ld s w ith p o w e r to v o t e , or o t h e r w is e
c o n t r o l s , m o r e th a n 5 p e r c e n t o f its s h a re s or t h e ir e q u iv a le n t , and
B)
e a c h c o m p a n y o r g a n iz e d u n d er th e la w s o f a f o r e i g n c o u n t r y t h a t " e n g a g e s
in b u sin e ss in t h e U n ite d S t a t e s " ! ' th a t th e R e p o r t in g O r g a n iz a t io n d i r e c t l y
or in d ir e c t ly o w n s , c o n t r o ls , or h o ld s w ith p o w e r to v o t e , o r o t h e r w is e
c o n t r o l s , m o r e th a n 5 p e r c e n t o f its s h a re s or t h e ir e q u iv a le n t .
D o n o t c o m p l e t e a S c h e d u le B f o r a c o m p a n y a c q u ir e d a s a r e s u lt o f a d e b t p r e v io u s ly
c o n t r a c t e d or h eld in a fid u c ia r y c a p a c i t y .
R eport Item 5z Holdings acquired in a fiduciary ca p a city or through collection of debts
previously co n tracted
L ist e a c h c o m p a n y o r g a n iz e d u n d er th e la w s o f th e U n ite d S t a t e s and e a c h
c o m p a n y o r g a n iz e d u n der th e la w s o f a fo r e ig n c o u n t r y th a t d i r e c t l y e n g a g e s in
b u sin ess in th e U n ite d S ta te s in w h ich th e R e p o r t in g O r g a n iz a t io n d i r e c t l y or
in d ir e c t ly ow n s or c o n t r o l s 5 p e r c e n t o f any c la s s o f v o t in g s h a r e s a s a r e s u lt o f
a d e b t p r e v io u s ly c o n t r a c t e d or w h en 5 per c e n t o f th e s h a re s a re h e ld in a
fid u c ia r y c a p a c i t y w ith a u th o r ity to e x e r c i s e s o le d i s c r e t io n a r y p o w e r t o v o t e
su ch s h a r e s .
R ep o rt Item 6: Shares and Shareholders
A)
L ist th e n u m b er and t y p e o f s h a r e s , or t h e ir e q u iv a le n t t h a t th e R e p o r t in g
O r g a n iz a t io n has a u t h o r iz e d , is s u e d , or h e ld fo r its ow n a c c o u n t , and
d e s c r i b e th e v o t in g r ig h ts o f e a c h t y p e .
B)
L ist e a c h s h a r e h o ld e r , or th e e q u iv a le n t t h e r e o f , o f r e c o r d th a t d i r e c t l y or
in d ir e c t ly o w n s , c o n t r o l s , or h o ld s w ith p o w e r to v o t e 5 p e r c e n t or m o r e o f
a n y c la s s o f v o t in g s e c u r i t ie s o f th e R e p o r t in g O r g a n iz a t io n .
The
b e n e f i c i a l o w n e r , in a d d itio n to th e s h a r e h o ld e r o f r e c o r d , sh o u ld b e lis t e d ,
to th e e x t e n t a s c e r t a i n a b l e , w hen th e b e n e f i c i a l o w n e r s h ip is 5 p er c e n t or
m o r e . P r o v id e th e f o l lo w i n g fo r e a c h :
1)
N a m e and l o c a t io n o f p r in c ip a l r e s id e n c e or o f f i c e ;
2)
C o u n t r y o f c it iz e n s h ip or o r g a n iz a t io n ;
3)
N u m b er and
p e rce n ta g e o f each
c la s s
and
o f v o t in g s e c u r i t ie s , or th e
e q u iv a le n t t h e r e o f , o w n e d , c o n t r o l l e d , or h eld w ith p o w e r to v o t e .
17
T h e te r m " e n g a g e d
o p e r a t in g an o f f i c e
U n ite d S ta te s .
in b u sin e ss in th e U n ite d S t a t e s " m e a n s m a in ta in in g and
(o th e r th an a r e p r e s e n t a t iv e o f f i c e ) or s u b s id ia r y in th e
R e g u a it io n K (12 C F R P A R T 2 1 1 ).
- 7 -
Report Item 7; Directors and Officers
2/
L ist e a c h d i r e c t o r and e x e c u t i v e o f f i c e r , O r g a n iz a t io n s h o w in g th e f o l lo w i n g :
or t h e ir e q u iv a le n t , o f th e R e p o r t in g
A)
N a m e an d l o c a t io n o f p r in c ip a l r e s id e n c e or o f f i c e ;
B)
C o u n t r y o f c i t iz e n s h i p ;
C)
T it le or p o s it io n w ith , and n u m b e r and p e r c e n t a g e o f e a c h c la s s o f v o t in g
s e c u r i t ie s , or th e e q u iv a le n t t h e r e o f , o w n e d , c o n t r o l l e d , or h e ld w ith p o w e r
to v o t e , o f :
D)
27
1)
th e R e p o r t in g O r g a n iz a t io n ; and
2)
e a c h r e la t e d c o m p a n y r e p o r t e d in r e s p o n s e to R e p o r t Ite m 4; and
P r in c ip a l o c c u p a t i o n , if o t h e r th a n w ith th e R e p o r t in g O r g a n iz a t io n .
T he te r m " e x e c u t i v e o f f i c e r " h a s th e s a m e m e a n in g a s s ig n e d su ch te r m u n der
R e g u la t io n O (1 2 C .F .R . 2 1 5 ).
S e c t io n 2 1 5 .2 (d ) s ta t e s " e x e c u t i v e o f f i c e r " o f a
c o m p a n y or ban k m e a n s a p e r s o n w h o p a r t i c i p a t e s or h as a u t h o r it y to p a r t ic ip a t e
(o t h e r th an in th e c a p a c i t y o f a d i r e c t o r ) in m a jo r p o lic y m a k in g fu n c t io n s o i th e
c o m p a n y or b a n k , w h e th e r or n o t : (1 ) th e o f f i c e r h a s an o f f i c i a l t i t l e , (2 ) th e t i t le
d e s ig n a t e s th e o f f i c e r an a s s is t a n t , or (3) th e o f f i c e r is s e r v in g w ith o u t s a ia rv or
o t h e r c o m p e n s a t io n .
T h e c h a ir m a n o f th e b o a r d , th e p r e s id e n t , e v e r y v i c e
p r e s id e n t , th e c a s h ie r , th e s e c r e t a r y , and th e tr e a s u r e r o f a c o m p a n y or ban k a re
c o n s id e r e d e x e c u t i v e o f f i c e r s , u n less (1 ) th e o f f i c e r is e x c lu d e d , by r e s o lu t io n o f
th e b o a r d o f d i r e c t o r s or by th e b y la w s o f th e bank or c o m p a n y , fr o m p a r t ic ip a t io n
(o t h e r th an in th e c a p a c i t y o f a d i r e c t o r ) in m a jo r p o lic y m a k in g f u n c t io n s o f th e
ban k or c o m p a n y , and (2 ) th e o f f i c e r d o e s n o t a c t u a lly p a r t i c i p a t e th e r e in .
- 3 -
F R Y-7
Page 1
FR BANK USE ONLY
Year
SCHEDULE A
Reporting Organization
See F .R . Y - 7 , Rep or t Item 3
j J
1
Parent
Dist.
| V | 7___I_____L-----; A , 9 , 1-2
|1 |
-------L_
9
3
Yr.
M o.
Day
111 [
23
25
27
30
I I I I II i I , I I
11
U .S . Business Activities
2. Describe the business activities c o n d u cte d by the Reporting Organization directly in the United States during the fiscal year. The
d e c e p t i o n should include a written description o f each activity, the appropriate four-digit SIC C o d e , and the locations at which
each activity is c o n d u ct e d . Business activities that have been c o m m e n c e d or terminated sub seq uent to the filing o f the prior F . R . Y - 7
should state the date o f such c o m m e n c e m e n t or termina tion. For activities that have no t been previously reported or were c o m
m enced subseq ue nt to the filing o f the prior F .R . Y - 7 , the date o f such c o m m e n c e m e n t should be indicated. For the SIC codes
refer to the Standard Industrial Classification Manual, 1972.
FR B A N K USE O N L Y
3. State the statutory authority (i.e., section of the Bank Holding C o m p a n y A c t o f 1 9 5 6 , International Banking A c t o f 1 9 7 8 ) , Regula
tion o f the Board o f Gover nors a nd /o r Board Order relied upon for authority to engage in the direct activities.
FR B A N K USE O N L Y
F R Y-7
FR BANK USE ONLY
Page 2
Y ear
1 I
SCHEDULE A
1
Reporting Organization - Continued
Dist.
1K
7 |A ) 9, 2, 1
3
BHC
See F .R . Y - 7 , Rep ort Item 3
l.j
9
4.
a.
l ! . . . i . i.
11
i
l
For each four-digit SIC c od e identified by the Reporting Organization, indicate the a m o u n t and percent o f gross revenues
derived in the United States by the Reporting Organization from the business activity.
b. For each four-digit SI C co d e identified by the Reporting Organization, indicate the a m o u n t and percent o f assets o f the R e p or t
ing Organization located in the United States.
Investments in U.S. Banks, Edge Cor pora tion s, A g r e e m e n t Corpora tion s, and C om m ercial Lending Co mpan ies
5.
Indicate the name, location o f head o ffic e , percentage o f ownership, a m o u n t o f investment, statutory authority relied up o n , and
date o f acquisition in any U .S . Bank, Edge Corpo ratio n, A g re e m e n t C or porat io n, and C om m ercial Lending C o m p a n y . T he date o f
acquisition should onl y be provided when such date has not been reported previously in the F . R . Y - 7 .
a.
N a m e _______________________ _____________________________________________________________________________________________
L oca tion o f head o ffic e
_________________________________________________________________________________________
Street
FR B A N K USE O N L Y
C ity
06 !
Percentage ownership
State
. U
'
S tatu to ry a uth o r it y __
Z io C ode
A m o u n t o f investm ent U .S . 3
.D at e o f a cq uisition_____________
b. N a m e .
L oca tion o f head o ffic e .
S tr ee t
C ity
Percentage ownership
State
f~06~l
A m o u n t o f investm ent U .S . $ ___________
S tatu to ry a uth or it y ____________
c.
Z ip C ode
.D at e o f a cq u isitio n ________________________
Nam e.
L oca tio n o f head o ffic e .
St ree t
Cit y
Percentage ownership LP*L
S tatu to ry a u t h o r it y ________
St ate
. Lk
A m o u n t o f investment U .S . S.
Z ip C ode
SuP. N o.
15
t-j-JLi-jLi
Yr.
.D at e o f a cquisitio n_____________
Mo.
Oay
23________________
Lil
F R Y -7
Page 3
FR SANK USE ONLY
Year
SCHEDULE B
1
3
Investments in Related Companies
Pare nt
See F .R . Y - 7 , Rep or t Item 4
I I
11
1. a.
07
Dist.
9
Yr .
lI
I I
Mo.
I
23
I
D ay
I
I
25
I
| | 3 |
27
30
___________________________________________________
N a m e of R el at e d C o m p a n y
b.
Lo c a t io n of head of f i c e
St r e e t
FR B A N K USE O N L Y
C ity
County
St.
09
State/C o untry
Cnty
|
Zip
I
I
I!
i
i
i
i
I
Z i p C ode ( if applicable)
D a t e of fiscal year-end
2. W he re the investment in this c o m p a n y was acquired during the fiscal year or was sold during the fiscal year, indicate the date o f
such acquisition or date o f term ination. C o m o a m e s that have not been previously reported on the F .R . Y - 7 , but were acquired prior
to the filing o f the prior report, should indicate the date of acquisition.
Yr .
a.
Mo.
Day
h'o | i I i j i
Date o f a c q u i s i t i o n ...........................................................................................................................................................
b. Date o f termination
D o n ot c o m p le te the remainder o f the schedule for investments that have been sold or otherwise terminated during the fiscal year.
U.S. Business Activities
3.
Identify the business activities c o n d u cte d by this c o m p a n y during the fiscal year. T he description should include a written descrip
tion o f each activity, the appropriate four-digit SIC C od e, and the location o f each o ffic e at which the activity is co n d u cte d . Busi
ness activities that have been c o m m e n c e d or terminated sub seq uent to the filing o f the prior F .R . Y - 7 should include the date of
such termination or c o m m e n c e m e n t . (If the c o m p a n y is inactive, so state.)
FR B A N K USE O N L Y
S IC
-1 1 -
Yr
rn
i
,
P "H
i
i
M
i
i
Mo.
Day
1
1
1
11 1
jJL . 1 i 1
■
II 1
1
■
! !
II
1
■
1
C /T
1 i L lJLI
F R Y -7
Page 4
FR 3ANK USE ONLY
Year
1
1 1
SCHEDULE B
Dist.
1
1I v , 7,A
1
Investment in Related Companies - Continued
17
4.
a.
i l l
3
Parent
I
I I I
See F . R . Y - 7 , Rep or t Item 4
9 ,2 ,
I
9
Yr.
Mo.
23
25
I
I II
Day
I i I
i
27
30
List the typ e, the num be r, and percentage o f snares, or their equivalent, that are earned, con tr olled, cr nela with po w e r to vote,
or otherwise controll ed , directly by the Reporting Organization. Wh en the shares are held indirectly by the Reporting Organiza
tion through a related c o m p a n y , indicate the name and location o f head offi ce o f each direct holder o f the shares and indicate
the typ e, the n um be r, and percentage o f shares o w n e d , con ro lled, or held with power to vote.
b. Indicate the a m o u n t in U .S . dollars o f investm ent (carrying value) in c o m p a n y recorded in the b o o k s o f the direct owner(s)
within the Reporting Organization at the end o f the fiscal year.
A m ount of
In v e s te d
U .S . S
( th o u s a n d s )
Name o f O w ner(s)
( D i r e c t H o l d e r {si )
FR B A N K USE O N L Y
Percent
Owned
o r C o n tro lle d
Class o r T y p e
o f Shares
Sub. N o.
a.
s
12
%
I
b.
S
12
%
I
I
c.
$
12
%
I
I
12
%
I
12
%
1 1
d.
e.
13
5.
s
s
s
. ..
.
l
I
Type
I
I
I
I
1
I
I
I
I
I
1
I
I
I
I
I
- 1
!
I
I
I
1
1
1
1
1
l
I
I
State the statutory authority (i.e., section o f the Bank Holding C o m p a n y A c t o f 1 9 5 6 , as a m e n d ed , International Banking A c t o f
1 9 7 8 ) , Regulation o f the Board o f G ov er nor s, a n d /o r Board Order reiied up on for authority to hold the investment in this c o m p a n y .
FR BA N K USE O N L Y
-12 -
FR BANK USE ONLY
FR Y-7
Page 5
Y ear
SCHEDULE B
Investments in Related Companies - Continued
See F .R . Y - 7 , Rep or t Item 4
I
I
1
I
D ist.
7 I A |9 l 2 l 1
|y
3
I
I
I
11
6.
I
|
9
Parent
I
II
Yr.
M o.
D ay
23
25
27
II i I
I i IM
30
W hen the Reporting Organization engages through this related c o m p a n y in business activities in the United States in reliance on
section 2( h) or section 4 ( c ) ( 9 ) o f the B H C A c t , respond to (a) and (b) b e lo w . If the related c o m p a n y is incorporated in the U .S .,
the requested responses for such c o m p a n y should be consolidated with the responses o f such related c o m p a n y 's direct holder( s).
a.
For each activity as defined by the four-digit SIC C o d e , indicate the a m o u n t and percent o f c o m p a n y 's gross revenue that is
derived fro m business c on d u cted in the United States.
b. For each activity as defined by the four-digit SIC C o d e , indicate the a m o u n t and percent o f the related c o m p a n y 's assets
located in the United States.
Th e fol low in g report items should be c o m p le t e d only when the Reporting Organization directly or indirectly ow ns, contr ols , or holds
w ith 'p o w e r to vo te, 2 5 percent or more o f the shares, or the equivalent th ereof, o f this c o m p a n y . All am o u n ts should be reported in
U.S. dollars.
A m o u n t s in T h o u s a n d s
o f U.S . D o l la r s
7.
B il .
Inco me fro m this c o m p a n y during the Reporting Organization's fiscal year.
a. Dividends declared, paid or p a y a b l e ............................................................................................................................
15
b. Other (interest, m an a ge m e n t, and service fees, etc.) excluding the Reporting Organization's
equity in undistributed earnings o f this c o m p a n y .................................................................................................
8.
Outstanding loans and advances to this c o m p a n y as o f the end o f the Reporting Organization's
'/ / / / / / / /
fiscal year.
a.
From the Reporting O rg a n iz a ti o n ...................................................................................................................................
b. From U .S . subsidiary banks, branches, agencies and com mercial lending c o m p a n i e s ....................
c.
From other U.S . nonbank in g c o m p a n i e s ..................................................................................................................
9.
Loans and leases, net o f unearned in co m e and reserve for possible loan l o s s e s ........................................
10 .
Total a s s e t s .........................................................................................................................................................................................
11 .
S t o c k h o l d e r s ' e q u i t y .....................................................................................................................................................................
12.
Total operating r e v e n u e .................................................................................... .........................................................................
13 .
Total operating e x p e n s e ..............................................................................................................................................................
14.
Net i n c o m e .........................................................................................................................................................................................
16
|
M il.
Thou.
F .R . Y - 7
S e c t io n n
B O A R D O F G O V E R N O R S O F TH E
F E D E R A L R E S E R V E SY ST E M
W a s h in g to n , D. C .
205 5 1
A N N U A L R E P O R T O F F O R E IG N B A N K H O L D IN G C O M P A N IE S ,
F O R E IG N B A N K S , A N D F O R E IG N P A R E N T C O M P A N IE S
S e c t io n II
N a m e o f R e p o r t in g O r g a n iz a t io n
___________________________________________ _______ __
L o c a t io n o f H e a d O f f i c e ___________________________________________________________________
N a m e , t i t l e and p h o n e n u m b e r o f p e r s o n to w h o m q u e s t io n s r e la t e d to S e c tio n II
m ay be d ir e c te d :
N am e
A rea C od e
T it le
P h on e N u m b e r
T h e i n fo r m a t io n s u b m it t e d in r e s p o n s e to th e r e p o r t it e m s in S e c t io n II o f th e F .R .
Y - 7 g e n e r a lly w ill b e a c c o r d e d c o n f i d e n t i a l t r e a t m e n t by th e B oa rd o f G o v e r n o r s .
S E C T IO N n
R eport Item 1: O rganization C hart
S u b m it an o r g a n iz a t io n c h a r t s h o w in g th e R e p o r t in g O r g a n iz a t io n and a ll r e la t e d
U. S. and fo r e ig n c o m p a n i e s in w h ic h 25 p e r c e n t or m o r e o f th e v o t in g s e c u r i t ie s
a re d i r e c t l y or in d ir e c t ly o w n e d , c o n t r o ll e d , or h eld w ith p o w e r to v o t e , or
o t h e r w is e c o n t r o l l e d , by t h e R e p o r t in g O r g a n iz a t io n .
T h e c h a r t sh ou ld d i s c l o s e th e n a m e , lo c a t io n o f h ea d o f f i c e , and th e p e r c e n t a g e
o w n e r s h ip o f e a c h c la s s o f v o t in g s t o c k or o th e r fo r m o f c o n t r o l o f e a c h
c o m p a n y . R e l a t e d c o m p a n i e s th a t are m a jo r it y o w n e d and n o t c o n s o lid a t e d on a
l in e - b y - i in e b a s is in th e fin a n c ia l s t a t e m e n t s p r e s e n t e d in re s p o n s e to R e p o r t
Ite m 1, S e c t io n I sh o u ld b e so i d e n t if ie d .
- 14 -
Report Item 2: Earnings
T h e c o n s o lid a t e d i n c o m e s t a t e m e n t o f th e R e p o r t in g O r g a n iz a t io n fo r th e la st
t w o f i s c a l y e a r s sh o u ld b e p r e s e n t e d in a f o r m a t s im ila r to th e f o l lo w i n g
i n s t r u c t io n s .
T h e n e t in c o m e sh o u ld b e s t a t e d in b o t h U .S . d o lla r s and th e
c u r r e n c y o f th e c o u n t r y in w h ic h th e h ea d o f f i c e is l o c a t e d .
T h e n e t in c o m e
sh o u ld b e e q u iv a le n t to th e a m o u n t r e p o r t e d in S e c t io n I, R e p o r t Ite m 1 (A ) or a
r e c o n c il i a t i o n o f th e tw o fig u r e s sh o u ld b e p r o v id e d .
W h e re th e in c o m e
s t a t e m e n t p r e s e n t e d in r e s p o n s e t o S e c tio n I, R e p o r t Ite m 1 (A ) is s im ila r to th e
p r e s c r ib e d f o r m a t , th e r e s p o n s e to th is it e m s h o u ld r e f e r e n c e th a t p a r t o f th e
re p o rt.
T h e s t a t e m e n t o f in c o m e sh o u ld b e s u b m itte d
t i t le s and m a t e r ia lit y t e s t s .
u t iliz in g th e f o l lo w i n g a c c o u n t
1.
I n te r e s t and f e e s on lo a n s .
In clu d e in t e r e s t and s e r v i c e c h a r g e s and f e e s
w h ic h a re r e la t e d to or a r e an a d ju s tm e n t o f th e lo a n i n t e r e s t r a t e .
C u r r e n t a m o r t iz a t io n o f p r e m iu m s on m o r t g a g e s or o t h e r lo a n s sh a ll b e
d e d u c t e d fr o m in t e r e s t on loa n s and c u r r e n t a c c r e t i o n o f d is c o u n t on su ch
it e m s sh a ll b e a d d e d to in t e r e s t on lo a n s .
2.
In te r e s t and d iv id e n d s
on in v e s t m e n t s e c u r i t ie s .
In clu d e a c c r e t i o n o f
d is c o u n t on s e c u r i t ie s and d e d u c t a m o r t i z a t io n o f p r e m iu m s on s e c u r i t ie s .
3.
O th e r in t e r e s t in c o m e .
in t e r e s t fr o m s e c u r it ie s
In clu d e in t e r e s t on s h o r t - t e r m in v e s t m e n t s , and
c a r r ie d in a d e a le r tra d in g a c c o u n t or a c c o u n t s
t h a t a r e h e ld p r in c ip a lly fo r r e s a le to c u s t o m e r s .
4.
L e a s e fin a n c in g .
5.
T o t a l in t e r e s t in c o m e .
6.
In te r e s t on d e p o s it s .
7.
I n te r e s t on s h o r t - t e r m b o r r o w in g s .
In clu d e in t e r e s t on b o r r o w e d fu n d s
in c lu d in g fu n d s p u r c h a s e d , s e c u r it ie s so ld u n der a g r e e m e n t s to r e p u r c h a s e ,
In clu d e in t e r e s t on a ll d e p o s it s .
c o m m e r c i a l p a p e r and o t h e r s h o r t - t e r m b o r r o w in g s .
8.
In te r e s t on lo n g - t e r m
d e b en tu res, m o rtg a g e s
d eb t.
9.
T o t a l in t e r e s t e x p e n s e .
10.
N e t in t e r e s t in c o m e .
11.
P r o v is io n fo r p o s s ib le loan lo s s e s .
12.
N e t in t e r e s t in c o m e a f t e r p r o v is io n fo r p o s s ib le loa n lo s s e s .
13.
O th e r in c o m e . S ta te s e p a r a t e ly any o th e r it e m o f in c o m e th a t e x c e e d s 5
per ce n t o f rev en u e.
14.
O th e r e x p e n s e s . S ta te s e p a r a t e ly any o th e r e x p e n s e th a t e x c e e d s 5 p er c e n t
o f reven ue.
d eb t.
In clu d e in t e r e s t on b o n d s , c a p i t a l n o t e s ,
on ban k p r e m is e s , c a p i t a l i z e d le a s e s and s im ila r
-
15
-
15.
I n c o m e or loss b e f o r e i n c o m e t a x e x p e n s e , s e c u r i t ie s g a in s or lo s s e s (an d
a p p r o p r ia t e it e m s D elo w ).'
16.
In com e ta x ex p en se.
17.
I n c o m e b e f o r e s e c u r i t ie s g a in s or lo s s e s .
18.
I n v e s tm e n t s e c u r i t i e s g a in s or lo s s e s , less a p p lic a b le t a x .
19.
I n c o m e o r loss b e f o r e e x t r a o r d in a r y it e m s .
20.
E x t r a o r d in a r y i t e m s , le ss a p p lic a b le ta x .
21.
C u m u la t iv e e f f e c t s o f c h a n g e s in a c c o u n t in g p r in c ip le s .
22.
N e t in c o m e or lo s s .
Report Item 3; Loan Loss Experience
A)
T h o s e R e p o r t in g O r g a n iz a t io n s t h a t h a v e e s t a b lis h e d a llo w a n c e s , r e s e r v e s ,
or c o n t r a a c c o u n t s a g a in s t a s s e t a c c o u n t s to a b s o r b lo s s e s r e s u ltin g f r o m
le n d in g a c t i v i t i e s s h o u ld fu rn is h a r e c o n c il i a t i o n o f su ch a c c o u n t s , in c lu d in g
an y s p e c i f i c a llo w a n c e or r e s e r v e e s t a b lis h e d to a b s o r b lo ss on a s p e c i f i c
e x t e n s io n o f c r e d i t , or s e c u r i t ie s o r a s s e ts a c q u ir e d a s a r e s u lt o f a d e b t
p r e v io u s ly
con tra cted .
T he
r e c o n c il i a t i o n
s h o u ld
be
fu r n is h e d
in
a c c o r d a n c e w ith th e f o l lo w i n g :
1)
P r e s e n t th e b e g in n in g and e n d in g b a la n c e s fo r
years.
th e la st t w o f i s c a l
2)
D e t a il a d d it io n s to th e a c c o u n t , in c lu d in g a m o u n ts e x p e n s e d in th e
i n c o m e s t a t e m e n t , a m o u n ts d i r e c t l y d e d u c t e d fr o m th e c a p i t a l
a c c o u n t s a n d /o r o t h e r r e s e r v e a c c o u n t s , and r e c o v e r i e s fr o m a s s e ts
p r e v io u s ly c h a r g e d - o f f .
3)
D e t a il d e d u c t io n s fr o m
lo a n s a n d e t h e r lo s s e s
th e a c c o u n t s , in c lu d in g th e c h a r g e - o f f o f
r e s u ltin g fr o m e x t e n s io n s o f c r e d i t , and
a m o u n ts t r a n s f e r r e d to c a p i t a l a n d /o r o t h e r r e s e r v e a c c o u n t s .
k)
P r e s e n t a s m e m o r a n d a it e m s th e g r o s s a m o u n t o f lo a n s , th e a m o u n t
o f a llo w a n c e s or r e s e r v e s a l lo c a t e d to a b s o r b lo s s e s r e s u ltin g fr o m
th e le n d in g o p e r a t io n , and th e a m o u n t o f u n e a rn e d in c o m e in c lu d e d
in g r o s s lo a n s . F ro m th e a s s e t c a t e g o r i e s p r e s e n t e d on th e b a la n c e
s h e e t s u b m it t e d in r e s p o n s e to R e p o r t Ite m 1, S e c t io n I, s t a t e th e
c a t e g o r i e s o f a s s e ts in c lu d e d in th e g r o s s lo a n a m o u n t .
P r o v id e a
w r it t e n d e s c r ip t io n o f th e t y p e o f c r e d i t s in c lu d e d in th e r e s p e c t i v e
a sse t c a t e g o r ie s .
B)
If th e R e p o r t in g O r g a n iz a t io n d o e s n o t c h a r g e - o f f lo s s e s r e s u lt in g f r o m th e
le n d in g o p e r a t io n th r o u g h a llo w a n c e s or r e s e r v e s , it sh o u ld fu rn ish a
d e s c r ip t io n o f th e a c c o u n t i n g p r a c t i c e s used in r e c o r d in g th e s e c h a r g e - o f f s
ana d e t a il th e g r o s s a m o u n t o f c h a r g e - o f f s and r e c o v e r i e s fo r th e la st t w o
fis c a l years.
-
16
-
Report Item
A)
Gains and Losses on Debt and Equity Securities
If th e R e p o r t in g O r g a n iz a t io n has e s t a b lis h e d r e s e r v e s or c o n t r a a c c o u n t s
a g a in s t an a s s e t a c c o u n t to a b s o r b lo s s e s or o t h e r c h a n g e s in v a lu e
r e s u lt in g f r o m in v e s t m e n t s in d e b t and e q u it y s e c u r i t ie s , it sh o u ld fu rn is h
a r e c o n c il i a t i o n o f th e r e s e r v e s in a c c o r d a n c e w ith th e f o l lo w i n g :
1)
P r e s e n t th e b e g in n in g and e n d in g b a la n c e s fo r
years.
th e
last t w o f i s c a l
2)
D e t a il a d d it io n s to th e a c c o u n t , in c lu d in g a m o u n ts e x p e n s e d in th e
in c o m e s t a t e m e n t , g a in s r e c o g n iz e d f r o m th e s a le , e x c h a n g e , or
r e v a lu a t io n o f a s s e t s , and t r a n s fe r s fr o m c a p i t a l a n d /o r o th e r
reserve a cco u n ts.
3)
D e t a il d e d u c t io n s fr o m th e a c c o u n t , in c lu d in g lo s s e s r e c o g n i z e d on
th e s a le , e x c h a n g e , or r e v a lu a tio n o f a s s e t s , and t r a n s fe r s to c a p i t a l
a n d /o r o t h e r r e s e r v e a c c o u n t s .
T he m a r k e t v a lu e o f s e c u r i t ie s
p u b lic ly tr a d e d on an e x c h a n g e sh o u ld b e g iv e n .
4)
P r e s e n t a s a m e m o r a n d u m ite m s th e t o t a l c a r r y in g v a lu e o f d e b t and
e q u ity s e c u r i t ie s , d is tin g u is h in g b e t w e e n s e c u r i t ie s tr a d e d on a
r e c o g n i z e d e x c h a n g e and s e c u r it ie s h a v in g no e s t a b lis h e d m a r k e t.
F or m a r k e t a b le s e c u r i t ie s , p r o v id e th e c u r r e n t m a r k e t v a lu e if
d i f f e r e n t fr o m th e c a r r y in g v a lu e .
F or n o n -m a r k e t a b le s e c u r i t ie s ,
p r o v id e th e a p p r a is e d v a lu e a n d /o r n e t a s s e t v a lu e (b o o k v a lu e ) if
d i f f e r e n t fr o m th e c a r r y in g v a lu e .
B)
If th e R e p o r t in g O r g a n iz a t io n d o e s n o t c h a r g e - o f f l o s s e s or
in v a lu e in d e b t and e q u ity in v e s t m e n t s th ro u g h r e s e r v e s , it
a d e s c r ip t io n o f th e a c c o u n t in g p r a c t i c e s u sed in r e c o r d in g
o f f s and o t h e r c h a n g e s in v a lu e and d e t a il th e g r o s s a m o u n t
v a lu e fo r th e la st t w o f i s c a l y e a r s .
o th e r ch a n g es
s h o u ld fu rn is h
th ese c h a rg e o f c h a n g e s in
R eport Item 5: Inner R eserv es and Other Contra A ccounts ag ain st A ssets and L iab ilities
resulting in "hidden" reserves
If th e R e p o r t in g O r g a n iz a t io n u t iliz e s a c c o u n t in g p r a c t i c e s th a t r e s u lt in th e
c r e a t i o n o f in n er r e s e r v e s , a g g r e g a t e d in lia b ilit y a c c o u n t s and n o t s e p a r a t e ly
d e t a ile d , o r in th e c r e a t i o n o f h id d en r e s e r v e s , c o n t r a to an a s s e t or a lia b ilit y
a c c o u n t r e p o r t e d on a n e t b a s is , it
sh o u ld d i s c l o s e or s e p a r a t e su ch r e s e r v e s
f r o m a g g r e g a t e a c c o u n t s in a c c o r d a n c e w ith th e f o l lo w i n g c r i t e r i a :
1)
P r e s e n t th e b e g in n in g and e n d in g b a la n c e s fo r
years.
2)
D e t a il a d d it io n s to th e a c c o u n t , w h ich m a y in c lu d e g a in s r e c o g n i z e d
on th e r e v a lu a tio n o f s e c u r i t ie s , in v e s t m e n t s , fix e d a s s e t s , c u r r e n c y
t r a n s la t io n , and fo r w a r d fo r e ig n e x c h a n g e c o n t r a c t s , t r a n s fe r s f r o m
th e in c o m e a c c o u n t p r io r to r e p o r t in g in c o m e to th e s h a r e h o ld e r s ,
and t r a n s fe r s f r o m o t h e r r e s e r v e a c c o u n t s .
- 17 -
th e la st t w o f i s c a l
3)
D e t a il
d e d u c t io n s
fr o m
th e
a ccou n t,
w h ich
m ay
in c lu d e
lo s s e s
r e c o g n i z e d on th e r e v a lu a tio n o f s e c u r i t ie s , in v e s t m e n t s , fix e d
a ssets,
cu rren cy
tr a n s la t io n ,
and
fo r w a r d
fo r e ig n
exch an ge
c o n t r a c t s , t r a n s fe r s to th e i n c o m e a c c o u n t p r io r to r e p o r t in g i n c o m e
t o th e s h a r e h o ld e r s , and t r a n s fe r s t o o t h e r r e s e r v e a c c o u n t s .
4)
P r e s e n t a s a m e m o r a n d u m it e m a d e s c r ip t io n o f th e a c c o u n t in g
p r a c t i c e s or s t a t u t o r y or r e g u la t o r y a c c o u n t in g s ta n d a rd s th a t
p r e s c r i b e th e e s t a b lis h m e n t o f su ch r e s e r v e a c c o u n t s .
R ep o rt Item 6: O utside Ownership
L ist
each
d i r e c t o r , e x e c u t i v e o f f i c e r , —^ and p r in c ip a l s h a r e h o ld e r ,-^
e q u iv a le n t , o f th e R e p o r t in g O r g a n iz a t io n , s h o w in g th e f o l lo w i n g :
or
th e ir
a)
N am e;
b)
T it le or p o s it io n , a s a d i r e c t o r or an e x e c u t i v e o f f i c e r or th e e q u iv a le n t
t h e r e o f , in any c o m p a n y o r g a n iz e d u n der th e la w s o f th e U n ite d S ta te s or a
f o r e i g n c o u n t r y ; and
c)
N u m b e r and p e r c e n t a g e o f o w n e r s h ip o f th e v o t in g s e c u r i t ie s o f an y
c o m p a n y o r g a n iz e d u n d er th e la w s o f th e U n ite d S ta te s or a f o r e ig n
c o u n t r y in w h ich th e o w n e r s h ip , c o n t r o l , or p o w e r t o v o t e is 23 p e r c e n t or
m ore.
T h e t e r m s " e x e c u t i v e o f f i c e r " and " p r in c ip a l s h a r e h o ld e r " h a v e th e s a m e m e a n in g
a s s ig n e d su ch t e r m s u n d e r R e g u la t io n O (12 C .F .R . 2 1 3 ). S e c t io n 2 1 3 .2 (d ) s t a t e s
" e x e c u t i v e o f f i c e r " o f a c o m p a n y or ban k m e a n s a p e r s o n w h o p a r t i c i p a t e s o r has
a u th o r ity to p a r t i c i p a t e (o t h e r th an in th e c a p a c i t y o f a d i r e c t o r ) in m a jo r
p o lic y m a k in g f u n c t io n s o f th e c o m p a n y or b a n k , w h e th e r or n o t : (1 ) th e o f f i c e r
has an o f f i c i a l t i t l e , (2) th e t i t le d e s ig n a te s th e o f f i c e r an a s s is t a n t , o r (3 ) th e
o f f i c e r is s e r v in g w it h o u t s a la r y or o t h e r c o m p e n s a t io n .
T h e c h a ir m a n o f th e
b o a r d , th e p r e s id e n t , e v e r y v i c e p r e s id e n t , th e c a s h ie r , th e s e c r e t a r y , and th e
tr e a s u r e r o f a c o m p a n y or ban k are c o n s id e r e d e x e c u t i v e o f f i c e r s , u n less (1 ) th e
o f f i c e r is e x c lu d e d , by r e s o lu tio n o f th e b o a r d o f d i r e c t o r s or by th e b y la w s o f
th e ban k or c o m p a n y , f r o m p a r t ic ip a t io n (o t h e r than in th e c a p a c i t y o f a
d i r e c t o r ) in m a jo r p o lic y m a k in g fu n c t io n s o f th e ban k or c o m p a n y , an d (2) th e
o f f i c e r d o e s n o t a c t u a lly p a r t i c i p a t e th e r e in .
S e c t io n 2 1 3 .2 ( j) s t a t e s "p r in c ip a l
s h a r e h o ld e r " m e a n s an in d iv id u a l or a c o m p a n y (o th e r th an an in su re d b a n k ) th a t
d i r e c t l y or i n d i r e c t ly , or a c t i n g th ro u g h or in c o n c e r t w ith o n e or m o r e p e r s o n s ,
o w n s , c o n t r o l s , or has th e p o w e r to v o t e m o r e th a n 10 p e r c e n t o f an y c la s s o f
v o t in g s e c u r i t ie s o f a m e m b e r ban k or c o m p a n y .
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@FedFRASER