Bank agencies poised to extend foreign-country exposure reporting for 3 years

Having received no comments so far, federal banking regulators are proceeding to the next step toward setting a three-year extension of a required report for U.S. branches and agencies of foreign banks.

In the meantime, regulators are allowing one more 30-day public comment period.

The quarterly report, Country Exposure Report for U.S. Branches and Agencies of Foreign Banks, is administered under the auspices of the Federal Financial Institutions Examination Council (FFIEC) by the Federal Reserve Board, Federal Deposit Insurance Corp. (FDIC) and Office of the Comptroller of the Currency (OCC).

The report is submitted on FFIEC 019 and is made by each U.S. branch or agency of a foreign bank that has total direct claims on foreign residents in excess of $30 million. Respondents must report total exposure to residents of the filer’s home country; and the other five foreign nations to which its exposure is largest and totals at least $20 million.

The FFIEC 019 was first adopted in May 1997 and has changed little since then, according to the notice, slated for publication Monday in the Federal Register. No revisions are being proposed, but the agencies are interested in respondents’ views on potential revisions they should consider in future proposals. This includes views on “whether and how to adjust the $20 million minimum threshold for reporting a non-home foreign country exposure and whether to change the number of non-home foreign countries over that threshold that are reported,” the notice states.

In addition, comments are also specifically invited on:

  1. Whether the information collection is necessary for the proper performance of the agencies’ functions, including whether the information has practical utility;
  2. The accuracy of the agencies’ estimate of the burden of the information collection, including the validity of the methodology and assumptions used;
  3. Ways to enhance the quality, utility, and clarity of the information to be collected;
  4. Ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology; and
  5. Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.

The agencies estimate a total of 156 respondents will complete the FFIEC 019 report. The burden estimate per response is 10 hours, for a total annual burden of 6,240 hours.

The Fed issued a notice in April on all three agencies’ behalf seeking comment on the extension; the comment period closed June 26. The plan now goes to the Office of Management and Budget (OMB) for review and approval.

Proposed Agency Information Collection Activities: Submission for OMB Review; Comment Request