December 28, 2016

US Federal Reserve Board Finalizes Revisions to Form FR Y-7 Filed by Foreign Banking Organizations

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Shearman & Sterling LLP

The US Federal Reserve Board published a notice in the Federal Register that it has finalized its proposed revisions to Form FR Y-7Q implementing the home country capital adequacy requirements prescribed in Sections 252.143(b) and 252.154(b) of Regulation YY. These revisions are effective December 31, 2016, except for the three new line items regarding a foreign banking organization’s (FBO) leverage ratio, which are effective March 31, 2018.

The Federal Reserve Board noted that the submission of the information required on Form FR Y-7Q constitutes compliance with both the home country capital adequacy reporting and the certification requirements of Regulation YY. Accordingly, commencing with the FR Y-7Q filings as of December 31, 2016, the Federal Reserve Board will treat each quarterly filing as a certification of the reporting FBO’s home country capital adequacy. The Federal Reserve Board also eliminated the proposed line items for Pillar II buffers and any “other” applicable capital buffer. However, it retained the line item for reporting home country GSIB buffers. Regarding confidentiality, the Federal Reserve Board considers all the required information to be publicly available, but will consider, on a case-by-case basis, requests by individual FBOs for confidential treatment of specific line items.

View the Federal Register notice.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.