FR2052a_20190327_omb

Supporting Statement for the
Complex Institution Liquidity Monitoring Report
(FR 2052a; OMB No. 7100-0361)
Summary
The Board of Governors of the Federal Reserve System (Board), under authority
delegated by the Office of Management and Budget (OMB), extended for three years, with
revision, the Complex Institution Liquidity Monitoring Report (FR 2052a; OMB No.
7100-0361). The FR 2052a collects quantitative information on select assets, liabilities, funding
activities, and contingent liabilities of certain large financial firms on a consolidated basis and by
material legal entity. The Board uses the collected information to monitor the liquidity profile of
financial institutions supervised by the Board.
The Board extended the FR 2052a for three years and made permanent certain revisions
that the Board previously approved on a temporary basis. The revisions, which are discussed in
additional detail below, relate to the treatment of certain municipal obligations that are liquid and
readily marketable as high quality liquid assets (HQLAs). The estimated total annual burden for
the FR 2052a is 717,600 hours, which remains unchanged with the revisions. The form and
instructions are available on the Board’s public website at
www.federalreserve.gov/apps/reportforms/default.aspx.
Background and Justification
The financial crisis of 2007 and 2008 highlighted the need for timely data to identify and
monitor liquidity risks at individual firms as well as in aggregate across the financial system,
especially with respect to intra-company flows and exposures within a consolidated institution.
The Board created the FR 2052a in 2014 to meet this need, particularly with respect to capturing
such flows within large, systemically important, globally active U.S. banking institutions. Since
a single, consolidated view of a banking organization may be insufficient to provide meaningful
insight into the institution’s liquidity profile, the FR 2052a gathers data disaggregated by
material legal entity (e.g., parent company, broker/dealer entities, bank entities, etc.).
The data collected by the FR 2052a provide detailed information on the liquidity risks
within different business lines (e.g., financing of securities positions, prime brokerage activities).
In particular, these data serve as an important part of the Board’s supervisory surveillance
program in its liquidity risk management area and provide timely information on firm-specific
liquidity risks during periods of stress. The Board uses analyses of systemic and idiosyncratic
liquidity risk issues to inform its supervisory processes, including the preparation of analytical
reports that detail funding vulnerabilities. FR 2052a data also contribute to the Board’s
supervisory monitoring efforts and risk supervision by identifying potential impediments to the
movement of liquidity across legal entities. In addition, the FR 2052a provides detailed
information that the Board uses to monitor compliance with its Liquidity Coverage Ratio rule
(LCR rule)1 and assists the Board with macroprudential supervision. The collected information
is not available from other sources.
1

See 12 CFR 249.3.

Description of Information Collection
The FR 2052a collects data regarding inflows, outflows, and supplemental items,
subdivided into 10 distinct data tables. These tables are designed to stratify the assets, liabilities,
and supplemental components of a firm’s liquidity risk profile based on products that can be
described with common data structures while maintaining a coherent framework for liquidity risk
reporting.
The FR 2052a also includes sections covering broad funding classifications by product,
outstanding balance, and purpose, each segmented by maturity date. Generally, each section can
be classified into one of the following categories:
• Section 1: Inflows-Assets: Institutions report assets such as unencumbered assets,
borrowing capacity from central banks or Federal Home Loan Banks (FHLBs),
unrestricted reserve balances at central banks, restricted reserve balances at central banks,
unsettled asset purchases, and forward asset purchases.
• Section 2: Inflows-Unsecured: Institutions report unsecured inflow transactions such as
onshore placements, offshore placements, required nostro balances, excess nostro
balances, outstanding draws on revolving facilities, and other unsecured loans.
• Section 3: Inflows-Secured: Institutions report secured inflow transactions such as
reverse repurchase agreements, securities borrowing transactions, dollar rolls, collateral
swaps, margin loans, other secured loans where the collateral is rehypothecatable, and
other secured loans where the collateral is not rehypothecatable.
• Section 4: Inflows-Other: Institutions report other inflow transactions such as
derivatives receivables, collateral called for receipt, sales in the to-be-announced market,
undrawn committed facilities purchased, lock-up balances, interest and dividends
receivables, a net 30-day derivatives receivables measure, principal payments receivable
on unencumbered investment securities, and other inflow transactions.
• Section 5: Outflows-Wholesale: Institutions report wholesale outflow transactions such
as asset-backed commercial paper single-seller outflows, asset-back commercial paper
multi-seller outflows, collateralized commercial paper, asset-backed securities, covered
bonds, tender option bonds, other asset-backed financing, commercial paper, onshore
borrowing, offshore borrowing, unstructured long-term debt, structured long-term debt,
government supported debt, unsecured notes, structured notes, wholesale certificates of
deposit, draws on committed facilities, free credits, and other unsecured wholesale
outflow transactions.
• Section 6: Outflows-Secured: Institutions report secured outflow transactions such as
repurchase agreements, securities lending transactions, dollar rolls, collateral swaps,
FHLB Advances, outstanding secured funding from facilities at central banks, customer
short transactions, firm short transactions, and other secured outflow transactions.
• Section 7: Outflows-Deposits: Institutions report deposit outflow transactions such as
transactional accounts, non-transactional relationship accounts, non-transactional nonrelationship accounts, operational accounts, non-operational accounts, operational escrow
accounts, non-reciprocal brokered accounts, affiliated sweep accounts, non-affiliated
sweeps accounts, other product sweep accounts, reciprocal accounts, other third-party
deposits, and other deposit accounts.

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•

•

•

Section 8: Outflows-Other: Institutions report other outflow transactions such as
derivatives payables, collateral called for delivery, purchases in the to-be-announced
market, credit facilities, liquidity facilities, retail mortgage commitments, trade finance
instruments, potential derivative valuation changes, loss of rehypothecation rights and
collateral required due to changes in financial condition, excess customer margin,
commitments to lend on margin to customers, interest and dividends payables, a net 30day derivatives payables measure, other outflows related to structured transactions, and
other cash outflow transactions.
Section 9: Supplemental-Informational: Institutions report supplemental information
such as initial margin posted and received, variation margin posted and received,
collateral dispute receivables and deliverables, collateral that may need to be delivered,
collateral that the institution could request to be received, collateral that could be
substituted by the institution or a counterparty, long and short market value of client
assets, gross client wires received and paid, subsidiary liquidity that cannot be
transferred, Federal Reserve Act Section 23A capacity,2 outflows or inflows from closing
out hedges early, and potential outflows from non-structured or structured debt maturing
beyond 30 days where the institution is the primary market maker in that debt.
Section 10: Supplemental-Foreign Exchange: Institutions report foreign exchange
information such as foreign exchange spot, forwards and futures, and swap transactions.

All U.S firms with total consolidated assets of $700 billion or more or with assets under
custody of $10 trillion or more, and all foreign banking organizations (FBOs) with combined
U.S. assets of $250 billion or more, report data elements denominated in major currencies, while
other data elements denominated in non-major currencies are converted into United States
Dollars (USD) and flagged as converted. All other reporting entities report exclusively in USD
by flagging data as converted as appropriate. All entities that are required to comply with the
LCR rule are considered material entities for the purpose of the report.
Revisions to the FR 2052a
The Board made permanent certain revisions to the FR 2052a that the Board previously
approved on a temporary basis3 in response to the enactment of the Economic Growth,
Regulatory Relief, and Consumer Protection Act and corresponding changes to the treatment of
certain municipal obligations that are liquid and readily marketable as HQLAs under the LCR
rule.4 Specifically, the Board made revisions the Assets Category Table in Appendix III of the
FR 2052a such that the description of the asset classification code “IG2-Q” is inclusive of
municipal obligations that may qualify as HQLAs under the LCR rule.

2
3
4

See 12 U.S.C. 371c.
See 83 FR 46163 (September 12, 2018).
See 83 FR 44451 (August 31, 2018).

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Respondent Panel
The FR 2052a is filed by U.S. bank holding companies (BHCs) and savings and loan
holding companies (SLHCs)5 that are subject to the LCR rule as a covered depository institution
holding company, with total consolidated assets of $50 billion or more, and FBOs, as defined by
the Board’s Regulation K (International Banking Operations)6 including any U.S. BHC that is a
subsidiary of an FBO, with combined U.S. assets of $50 billion or more.7
Time Schedule for Information Collection and Publication
FR 2052a data is reported monthly by (1) U.S. firms with $50 billion or more in total
consolidated assets but less than $700 billion in total consolidated assets and less than $10
trillion in assets under custody, and (2) FBOs that are not identified as Large Institution
Supervision Coordinating Committee (LISCC) firms and have $50 billion or more in combined
U.S. assets. Daily reporting is required for (1) U.S. firms with $700 billion or more in total
consolidated assets or $10 trillion or more in assets under custody, and (2) FBOs identified as
LISCC firms. The revisions did not affect the time schedule of the FR 2052a.
Legal Status
The FR 2052a report is authorized to be collected from BHCs pursuant to section 5(c) of
the Bank Holding Company Act of 1956 (BHC Act) (12 U.S.C. 1844(c)); from FBOs pursuant to
section 8(a) of the International Banking Act of 1978 (IBA) (12 U.S.C. 3106(a)); from certain
BHCs and FBOs pursuant to section 165 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act) (12 U.S.C. 5365); and from SLHCs pursuant to section
10(b)(2) and (g) of the Home Owners’ Loan Act (HOLA) (12 U.S.C. 1467a(b)(2) and (g)).
Section 5(c) of the BHC Act authorizes the Board to require BHCs to submit reports to the Board
regarding their financial condition, and section 8(a) of the IBA subjects FBOs to the provisions
of the BHC Act. Section 165 of the Dodd-Frank Act requires the Board to establish prudential
standards, including liquidity requirements, for certain BHCs and FBOs. Section 10(g) of
HOLA authorizes the Board to collect reports from SLHCs. The FR 2052a report is mandatory
for covered institutions.
5

SLHCs with total consolidated assets of $50 billion or more that are covered depository institution holding
companies, as defined in 12 CFR 249.3 (Reporting SLHCs), were added as respondents to the FR 2052a in
November 2015, with varying implementation dates depending on the composition of firms’ balance sheets. See 80
FR 71795 (November 17, 2015). The OMB supporting statement that the Board submitted in connection with that
revision to the FR 2052a inadvertently omitted Reporting SLHCs as respondents for the report. In addition, the
instructions for the FR 2052a were not updated to include Reporting SLHCs as respondents. The Board has updated
the instructions for the FR 2052a to state that Reporting SLHCs are required to file the report.
6
See 12 CFR 211.21(o).
7
The Board has stated that it will not take action to require BHCs or SLHCs with less than $100 billion in total
consolidated assets to comply with certain existing regulatory requirements, including the requirements to report the
FR 2052a. See statement regarding the impact of the Economic Growth, Regulatory Relief, and Consumer
Protection Act (July 6, 2018), available at
www.federalreserve.gov/newsevents/pressreleases/files/bcreg20180706b1.pdf. Subsequently, the Board invited
comment on a proposal that would more closely match the regulations for large banking organizations with their risk
profiles. The proposal would affect the scope of application of the FR 2052a. The press release is available at
www.federalreserve.gov/newsevents/pressreleases/bcreg20181031a.htm.

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The information required to be provided on the FR 2052a is collected as part of the
Board’s supervisory process. Accordingly, such information is afforded confidential treatment
under exemption 8 of the Freedom of Information Act (FOIA), which protects information from
disclosure that is contained in or related to the examination or supervision of a financial
institution (5 U.S.C. 552(b)(8)). In addition, the information may also be kept confidential under
exemption 4 for the FOIA, which protects trade secrets or confidential commercial or financial
information (5 U.S.C. 552(b)(4)). In limited circumstances, aggregate data for multiple
respondents, which does not reveal the identity of any individual respondent, may be released.
Consultation Outside the Agency
The Board consulted with other U.S. regulatory authorities, including the Office of the
Comptroller of the Currency and Federal Deposit Insurance Corporation, in the development of
FR 2052a.
Public Comments
On December 28, 2018, the Board published an initial notice in the Federal Register
(83 FR 67285) requesting public comment for 60 days on the extension, with revision, of the
FR 2052a. The comment period for this notice expired on February 26, 2019. The Board did not
receive any comments. On March 27, 2019, the Board published a final notice in the Federal
Register (84 FR 11546).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR 2052a is
717,600 hours. The revisions did not result in a change to the estimated burden hours. These
reporting requirements represent approximately 6.26 percent of the Board’s total paperwork
burden.
Estimated
number of
respondents8
40
12

FR 2052a
Monthly
Daily
Total

Estimated
Annual
average hours
frequency
per response
12
120
250
220

Estimated
annual burden
hours
57,600
660,000
717,600

The estimated total annual cost to the public for this collection of information is $40,221,480.
Sensitive Questions
This information collection contains no questions of a sensitive nature, as defined by
OMB guidelines.

8

Of these respondents, none are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $550 million in total assets) www.sba.gov/document/support--table-size-standards.

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Estimate of Cost to the Federal Reserve System
The estimated cost to the Federal Reserve System is $532,800.

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