FR2052a_20200203_omb

Supporting Statement for the
Complex Institution Liquidity Monitoring Report
(FR 2052a; OMB No. 7100-0361)
Prudential Standards for Large Bank Holding Companies,
Savings and Loan Holding Companies, and Foreign Banking Organizations
(Docket No. R-1658; RIN 7100-AF45)
Summary
The Board of Governors of the Federal Reserve System (Board), under authority
delegated by the Office of Management and Budget (OMB), has 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 adopted a final rule that establishes risk-based categories for determining
prudential standards for large U.S. banking organizations and foreign banking organizations,
consistent with section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank), as amended by the Economic Growth, Regulatory Relief, and Consumer
Protection Act (EGRRCPA), and with the Home Owners’ Loan Act (HOLA). The final rule
amends certain prudential standards, including standards relating to liquidity, risk management,
stress testing, and single-counterparty credit limits, to reflect the risk profile of banking
organizations under each category; applies prudential standards to certain large savings and loan
holding companies (SLHCs) using the same categories; makes corresponding changes to
reporting forms; and makes additional modifications to the Board’s company-run stress test and
supervisory stress test rules, consistent with section 401 of EGRRCPA. The final rule is effective
December 31, 2019. To implement the reporting requirements of the final rule, the Board is
modifying the current FR 2052a reporting frequency. The first as-of date for the amended
FR 2052a is June 30, 2020 (October 1, 2020, for foreign banking organizations with U.S. assets).
The current estimated total annual burden for the FR 2052a is 711,840 hours, and would
increase to 917,440 hours. The revisions would result in an increase of 205,600 hours. The draft
form and instructions are available on the Board’s public website at
https://www.federalreserve.gov/apps/reportforms/review.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.
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
1

See 12 CFR 249.3.

2

•

•

•

•

•

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.
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.

2

See 12 U.S.C. § 371c.

3

Respondent Panel
The FR 2052a is filed by U.S. bank holding companies (BHCs) and savings and loan
holding companies (SLHCs) 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 (12 CFR Part 211)3 including any
U.S. BHC that is a subsidiary of an FBO, with combined U.S. assets of $50 billion or more.
Adopted Revisions to the FR 2052a
The Board adopted a final rule that establishes risk-based categories for determining
prudential standards for large U.S. banking organizations and foreign banking organizations,
consistent with section 165 of the Dodd-Frank, as amended by the EGRRCPA, and with the
HOLA. The final rule amends certain prudential standards, including standards relating to
liquidity, risk management, stress testing, and single-counterparty credit limits, to reflect the risk
profile of banking organizations under each category; applies prudential standards to certain
large SLHCs using the same categories; makes corresponding changes to reporting forms; and
makes additional modifications to the Board’s company-run stress test and supervisory stress test
rules, consistent with section 401 of EGRRCPA. The final rule is effective December 31, 2019.
To implement the reporting requirements of the final rule, the Board is modifying the
current FR 2052a reporting frequency. The Board revised the FR 2052a (1) so that BHCs and
SLHCs with less than $100 billion in total consolidated assets would no longer have to report,
(2) BHCs or SLHCs subject to Category II standards ($700 billion or more in total consolidated
assets or $75 billion or more in cross jurisdictional activity) would have to report FR 2052a
daily, and (3) BHCs or SLHCs subject to Category III standards with $75 billion or more in
weighted short-term wholesale funding would have to report FR 2052a daily, rather than
monthly. Consistent with EGRRCPA’s changes, the revisions would remove foreign banking
organizations with less than $100 billion in combined U.S. assets from the scope of FR 2052a
reporting requirements. Additionally, the final rule would require foreign banking organizations
with combined U.S. assets of $100 billion or more to report the FR 2052a on a daily basis if they
are (1) subject to Category II standards or (2) are subject to Category III standards and have $75
billion or more in weighted short-term wholesale funding. All other foreign banking
organizations with combined U.S. assets of $100 billion or more would be subject to monthly
filing requirements. The first as-of date for the amended FR 2052a is June 30, 2020 (October 1,
2020, for foreign banking organizations with U.S. assets).
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

3

See 12 CFR 211.21(o).

4

consolidated assets or $10 trillion or more in assets under custody, and (2) FBOs identified as
LISCC firms.
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 Act (12 U.S.C. § 5365); and
from SLHCs pursuant to section 10(b)(2) and (g) of the 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.
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
There has been no consultation outside the Federal Reserve System.
Public Comments
On November 29, 2018, the Board published a notice of proposed rulemaking for U.S.
banking organizations in the Federal Register (83 FR 61408) for public comment. The comment
period for this notice expired on January 22, 2019. On May 15, 2019, the Board published a
notice of proposed rulemaking for foreign banking organizations in the Federal Register
(84 FR 21988) for public comment. The comment period for this notice expired on June 21,
2019. The Board did not receive any specific comments related to the Paperwork Reduction Act
(PRA) analysis. On November 1, 2019, the Board published a final rule in the Federal Register
(84 FR 59032). The final rule is effective on December 31, 2019.
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR 2052a is
711,840 hours, and would increase to 917,440 hours with the adopted revision. The Board

5

estimates that the revisions to the FR 2052a would decrease the respondent count by 6.
Specifically, the Board estimates that the number of monthly filers would decrease from 36 to
26, but the number of daily filers would increase from 12 to 16. The Board estimates that
revisions to the FR 2052a would increase the estimated annual burden by 205,600 hours. These
reporting requirements represent approximately 8.6 percent of the Board’s total paperwork
burden.
Estimated
number of
respondents4

FR 2052a
Current
Monthly
Daily

Estimated
Annual
average hours
frequency
per response

Estimated
annual burden
hours

36
12

12
250

120
220

51,840
660,000
711,840

26
16

12
250

120
220

Proposed Total

37,440
880,000
917,440

Change

205,600

Current Total
Proposed
Monthly
Daily

The current estimated total annual cost to the public for the FR 2052a is $41,001,984 and
would increase to $52,844,544 with the adopted revisions.5
Sensitive Questions
This information collection contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
The estimated cost to the Federal Reserve System is $532,800.

4

Of these respondents, none are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $600 million in total assets), https://www.sba.gov/document/support--table-size-standards.
5
Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $19, 45% Financial Managers at
$71, 15% Lawyers at $69, and 10% Chief Executives at $96). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2018, published March 29, 2019, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Occupational Classification System, https://www.bls.gov/soc/.

6