# Presentation: 505760

##                          WELCOME  TO THE 

**                         ****WELCOME  TO THE **
**TREASURY INTERNATIONAL  CAPITAL (TIC) REPORTS  SEMINAR**
**NOVEMBER 13, 2002**

## TIC  GENERAL OVERVIEW

## ORIGINS

- 	The Treasury International Capital (TIC) Reporting 		System originated in 1934 to provide U.S. government 	data on U.S. international portfolio investment and 		capital movements

## PURPOSE

- 	Balance of Payments
- Statistical statement that summarizes economic transactions for an economy with the rest of the world
- Current Account
- (e.g., goods, services, income)
- Capital Account
- (non-produced, non-financial assets)
- Financial Account
-  (U.S. Reserves, Direct Investment, Portfolio Investment)

**Notes:**
Explain Balance of Payments Accounting.
Basic assumption is that receipts = payments
 by definition total receipts on current account = current account payments plus the net increase in claims on foreigners. 
In principle, the balance of the current account equals that of the financial account because the underlying framework is the double entry accounting concept. 

By accounting convention a credit (+) is any transaction that results in a receipt from residents in the rest of the world (foreign residents) and a debit (-) is any transactions which requires a payment to be made to residents in the rest of the world.

When merchandise is exported (a credit), the exporter receives a payment in either a foreign bank (a capital outflow debit) or in a domestic bank (a debit as a foreign account is drawn down) or extends credit to an importer (a capital outflow debit). 

## PURPOSE

- 	U.S. International Investment Position
- Net International Investment Position
- 	Monetary and Fiscal Policies
- Assessments of the U.S. economy
- Money and credit aggregates
- Debt aggregates
- Monitoring banks’ operations and competitiveness
- Exposure to country risk

## PURPOSE

- 	Economic Analysis
- Financial account analysis
- Capital markets analysis
- Country analysis

## PUBLICATIONS OF TIC DATA

- 	Treasury Bulletin
- Published quarterly by the U.S. Department of Treasury
- 	Federal Reserve Bulletin
- Published monthly by the Federal Reserve Board
- 	Survey of Current Business
- Published monthly by the Dept. of Commerce, Bureau of Economic Analysis
- 	International Financial Statistics
- Published monthly by the IMF

## PUBLICATIONS OF TIC DATA

- 	TIC WEB SITE
- http://www.ustreas.gov/tic/
- Monthly time series, by country, updated on the last business day each month on a two month lag:
- Banking liabilities and claims positions by major category
- International securities transactions
- Net foreign purchases of long-term U.S. Treasury issues, by major foreign sector
- Estimated “Major Foreign Holders of U.S. Treasury Securities”

## RELATIONSHIP TO OTHER REPORTS

- 	Foreign Holdings of U.S. Securities, Including 			Selected Money Market Instruments (Form SHL)
- 	U.S. Ownership of Foreign Securities, Including 		Selected Money Market Instruments (Form SHC)
- 	Treasury Foreign Currency (TFC) Forms
- 	Direct Investment Forms

**Notes:**
SHL- collects information on short-term debt, long-term debt and equity securities at the security level on foreign holdings of U.S. securities. Required by all U.S. resident custodians and significant U.S.  Issuers of bearer bonds and U.S. issuers of securities that are held by foreigners but not through U.S. custodians. Two versions-  annual (largest respondents) and benchmark - every 5 years by everyone.,

SHC-  collects information on US residents holding for foreign securities, includes short-term, long-term and equity securities. Required by  all U.S. custodians and US resident  investors who hold  securities directly with foreign or use a foreign custodian.  Two versions - annual which will be effective Dec 2003 and only the largest respondents will report. And benchmark - every 3-5 years everyone.
TFC - collects data on assets,liabilities, and forward positions of largest U.S. residents in specified foreign currencies.
Direct Investment - data on cross border transactions and positions between affiliated US and foreign companies(Multinationals) and the overall operations of multinational companies are collected by BEA. To be affiliated a US company must own or control 10% of voting securities of a foreign incorporated business or a foreign company must own or control 10% of the voting securities of an incorporated US business.

## REPORT SERIES

- 	TIC B Forms (BC, BC (SA), BL-1, BL-1(SA),          		BL-2, BL-2 (SA), BQ-1, BQ-2 and BQ-3)
- Reports by Depository Institutions, by Bank Holding Companies/Financial Holding Companies (BHCs/FHCs), and  Securities Brokers/Dealers of Liabilities to, and Claims on, Foreign Residents by U.S. Residents
- Monthly, Quarterly and Semiannual reports

## REPORT SERIES

- 	TIC C Forms (CQ-1 and CQ-2)
- Reports for U.S. Residents Other than Depository Institutions and Securities Brokers/Dealers on Liabilities to, and Claims on, Foreign Residents
- Quarterly reports
- 	TIC S Form
- Report of Purchases and Sales of Long-term Securities by Foreigners
- Monthly report

## REASON FOR CHANGES

- 	To meet new and expanded international standards for 	reporting data on portfolio flows to the International 		Monetary Fund (IMF)
- 	To reduce reporting burden
- 	To clarify reporting instructions
- 	To improve the quality of the data by closing data gaps

## EFFECTIVE DATES OF CHANGE

- 	All monthly TIC B and TIC S report series are 			effective with the February 2003 as-of date
- 	All quarterly TIC B and TIC C report series are 			effective with the March 2003 as-of date
- 	All semiannual TIC B report series are effective with 		the June 2003 as-of date

## CHANGES TO THE TIC BANKING FORMS(Effective Feb. 2003)

- _Overall Changes_
- Depository institutions, BHC/FHCs and brokers and 	dealers will report most cross-border positions with 	affiliates (including affiliates of their parent) by type of counterparty and instrument
- The scope of reportable claims and liabilities has been 	expanded to include all positions in covered instruments
- permanent capital
- unrealized gains and losses

**Notes:**
(Should provide copy of letter mailed 8/29/02 which provides detailed breakdown by series)

Expanded scope of claims/liabilities
  all positions including perm capital, unrealized gains or losses, etc
  non traditional custody items , i.e sweeps, loans to US residents booked at managed foreign offices

## CHANGES TO THE TIC BANKING FORMS(Effective Feb. 2003)

- The scope of customers’ positions has been expanded to include non-traditional custody items
- Combining claims on foreign official institutions with 	claims on foreign banks
- Including claims/liabilities to own foreign offices 	either with foreign banks or all other foreigners, and in 	a separate memorandum column

## CHANGES TO THE TIC BANKING FORMS(Effective Feb. 2003)

- Combining short-term U.S. agency obligations and 	other negotiable and readily transferable instruments
- Eliminating BQ-1, Part 1, Reporter’s Own Claims 	(maturity information)
- Memorandum cells to capture _customers’ liabilities_ by 	sector of U.S. debtor and types of instruments

## CHANGES TO THE TIC BANKING FORMS(Effective Feb. 2003)

- 	“Of Which” Memorandum Items
- Negotiable CDs and other short-term negotiable
-     securities (BC)
- Non-interest bearing liabilities (BL-1)
- Commercial paper and claims of U.S. banks (BQ-1)

**Notes:**
Commercial paper and claims of U.S. banks
Non-negotiable deposits and non-negotiable foreign deposits

Memorandum cells for negotiable CDs, negotiable short term securities and positions collateralized through repos
New section to captures liabilities of the reporter’s Domestic Customer’s

## CHANGES TO THE TIC BANKING FORMS(Effective Feb. 2003)

- 	New Report Form
- The BQ-3 will be required for those reporters with _**$4 billion**_ or more in reportable liabilities (excluding securities) as reported on the BL-1 or BQ-2

## CHANGES TO THE TIC BANKING FORMS(Effective Feb. 2003)

- 	Mapping of Current Forms to New Forms (Exhibit 1)

## TIC B GENERAL INSTRUCTIONS

## WHO MUST REPORT

- 	Depository institutions including
- 	Commercial banks
- 	U.S. branches and agencies of foreign banks
- 	Trust companies that conduct commercial banking business
- 	Industrial banks, private or unincorporated banks
- 	Banking Edge Acts and Agreement corporations
- 	New York State Article XII corporations
- 	Mutual or stock savings banks
- 	Non-deposit and limited purpose companies
- 	Non-bank banks

## WHO MUST REPORT

- Securities brokers/dealers, regardless of their 		affiliations with other entities
- Bank Holding Companies (BHCs) and Financial 		      Holding Companies (FHCs)

**Notes:**
Entities located in the United States must file TIC B 		reports if reportable
	claims
	liabilities
	customer claims/liabilities

exceed the specified exemption level

## CONSOLIDATION RULES HOW TO FILE

**Securities Brokers/Dealers**

**BHCs / FHCs**

**District**
**FRB**** **

**FRBNY**

**CONSOLIDATION RULES HOW TO FILE**

**Notes:**
Note:  Not only are 2nd district DIs and BHC/FHC collected by NY but also the other district respondents NY has assumed responsibility for 

Commercial Banks, thrifts, trusts and similar entities
	owned by a U.S. bank holding company (BHC) or
	owned by a U.S. financial holding company (FHC)
		should consolidate all of their U.S. banking offices 		including IBFs
	owned by a security broker or dealer

should submit B forms separate from the securities 		broker dealer
	not owned by a holding company or securities broker or 		dealer

		should file one consolidated report for all its U.S. 		banking offices

Securities Brokers and Dealers
	prepare consolidation B reports for their
	securities broker or dealer entities 
	subsidiaries in the U.S.

Edge Act and Agreement corporations report all their:
	branches
	subsidiary companies
	IBFs
Exclude:
	Parent organization
United States branches and agencies of a foreign bank
located within the same state
within the same Federal Reserve District
including IBF
Federal Reserve Bank in whose district they operate

## FORMS

- 	BC/BC (SA) -  Report of U.S. Dollar Claims of 			Depository Institutions, Bank Holding 				Companies/Financial Holding Companies, Brokers, 		and Dealers 	on Foreigners
- 	BL-1/BL-1 (SA) - Report of U.S. Dollar Liabilities of 		Depository Institutions, Bank Holding 				Companies/Financial Holding Companies, Brokers, 		and Dealers 	to Foreigners

## FORMS

- 	BL-2/BL-2 (SA) - Report of Customers’ U.S. Dollar 		Liabilities to Foreigners
- 	BQ-1 - Report of Customers’ U.S. Dollar Claims on 		Foreigners

## FORMS

**FORMS**

- 	BQ-2
- 		Part 1 - Report of Foreign Currency Liabilities and 		Claims of Depository Institutions, Bank Holding 		Companies/Financial Holding Companies, Brokers and 	Dealers, and of their Domestic Customers vis-à-vis 		Foreigners
- 		Part 2 - Report of Customers’ Foreign Currency 		Liabilities to Foreigners

## FORMS

**FORMS**

- 	BQ-3
- 		Report of Maturities of Selected Liabilities of 			Depository Institutions, Bank Holding 				Companies/Financial Holding Companies, Brokers, 		and Dealers to Foreigners

## DATES

_**Form**_
- BC, BL-1, BL-2
- BQ-1, BQ-2, BQ-3
- BC (SA), BL-1 (SA),
- BL-2 (SA)

_**	**__**Due Date**_
- 	No later than the 15th calendar day of the following month
- 	No later than the 20th calendar day of the following month
- 	No later than the 30th calendar day of the following month

_**As of Date**_
- Last business day of each month
- Last business day of March, June, September and December
- Last business day of June and December

**Notes:**
Report balances outstanding
at the close of business
as-of the last business day of the period covered

The time designated as close of business should be reasonable and applied consistently

## EXEMPTION LEVEL	S

- 	Applies to the consolidated reportable claims and 		liabilities
- 	Once the exemption level is exceeded, reports must 		continue to be submitted for the remainder of the 		calendar year

## EXEMPTION LEVELS

**Form****	****	****	****Grand Total of all ****	**** ****	****Individual Country**
** ****	****	****	****	****Geographic areas****	**** ****	****Data**
**	****	****	****	****(Row 9999-6)****	****	****(Any Country Row)****	**** BC****	****	****	****	****$50 Million****	****	****	****$25 Million**
**BL-1****	****	****	****$50 Million****	****	****	****$25 Million**
**BL-2****	****	****	****$50 Million****	****	****	****$25 Million**
**BQ-1****	****	****	****$50 Million****	****	****	****$25 Million**
**BQ-2, Part 1****	****$50 Million****	****	****	****$25 Million**
**BQ-2, Part 2****	****$50 Million****	****	****	****N/A**
**	****	****	****	**

- new

## EXEMPTION LEVELS

**Form****	****	****	****	****Total reported data on Forms BL-1 and ****	****	****	****	****	****	****BQ-2, Part 1, Columns 1 and 2**
** ****	****	****	****	****	****Geographical Areas (Row 9999-6) ****	****	**
**BQ-3****	****	****	****	****$4 Billion****	****	****	**
**	**

- new

## DATA SUBMISSION

- 	Reporters’ Information
- The RSSD ID and name of reporting entity must be entered in the space provided on each page of the report form
- 	Alternative Methods of Reporting
- Electronically via Internet Electronic Submission System		(IESUB)
- Typed or handwritten in ink
- Computer generated with prior written approval from the responsible Federal Reserve Bank

## DATA SUBMISSION

**DATA SUBMISSION**

- 	Signature Requirement
- 	Hard Copy
- Report forms must be signed by an authorized officer of 	the reporting institution
- 	Electronic filers
- Signature page should be retained by the reporter
- Methods of Submission
- Mail
- Fax
- Hand delivered

## MAINTAINING DATA RECORDS

**MAINTAINING DATA RECORDS**

- 	Record/Report Retention
- 	Reports must be retained for 3 years from the date of 		submission

## TIC  B COMMON REPORTING ELEMENTS

## GENERAL ACCOUNTING ISSUES

- 	Report gross, using settlement date accounting
- 	Report in millions of U.S. dollars at the face value 		of the instrument
- 	Report the U.S. dollar equivalent of foreign currency 		denominated transactions converted by using the spot 		exchange rate on the as of date of the report

## GENERAL ACCOUNTING ISSUES

- This differs from the S report for which securities are reported at cost regardless of any discounts or 	premiums
- 	Do not report decimals or negative values in any cell

## GENERAL ACCOUNTING ISSUES

- 	Treatment of Charge-offs, Reserves and Write-offs:
- Deduct from reportable claims any charge-offs or 		specific reserves (Do not reduce claims by general or 		valuation reserves)
- Report the amount of the charge-off, including the 		specific reserves, on the BC (Row 8200-9), in the initial 	reporting period when established

**Notes:**
In the appropriate column

## DEFINITIONS

**DEFINITIONS**

- 	United States
- The fifty states and the District of Columbia
- The Commonwealth of Puerto Rico and the Northern Mariana Islands
- U.S. territories

**Notes:**
Includes
Howland Island
Jarvis Island
Johnston Atoll
Kingman Reef
Navessa Island
Paymyra Atoll

## DEFINITIONS

- 	Location of Foreign Counterparty
- The positions should be reported opposite the location in which the direct counterparty resides, _not_ the location of the guarantor, currency of denomination or the nationality of the counterparty

## DEFINITIONS

**	****Example****	**
- A respondent has a reportable claim on Cayman Islands branch of a U.S. bank.  The claim should be reported opposite the location in which the direct counterparty resides (Cayman Islands), not the location of that bank’s head office (United States)

## DEFINITIONS

**	****Exceptions**
- Branches or agencies of Foreign Official Institutions
- Bank for International Settlements (BIS)
- Red Cross and The Institute of International Finance
- International and multi-national regional organizations

**Notes:**
Bank of International Settlements (BIS) located in 		Switzerland should be reported opposite Other Europe 	(1800-7) 

## DEFINITIONS

- 	Foreign Resident
- Any individual/entity located outside the United States
- Any entity incorporated or chartered outside the U.S, even if it has no physical presence outside the United States
- Include
- Foreign governments and any subdivision or agency
- Entities that have filed an IRS Form W-8
- Branches, subsidiaries and other affiliates of U.S. entities located abroad
- 	Exception: International, Regional or affiliated agencies thereof, created by treaty or convention between sovereign states, even if located in the U.S. are also considered foreign

**Notes:**

Includes citizens of the U.S. residing outside the U.S

World Bank, IMF (located in U.S but considered International...

W8- indicates entity is nonresident alien or foreign entity not subject to certain US information reporting or to backup withholding rules

## DEFINITIONS

- 	Own Foreign Offices
- Reporter’s own offices located outside the U.S. (banking and non-banking)
- Foreign-located head office/parent
- Foreign _banking_ subsidiaries of your head office/parent bank
- Exclude
- Foreign-located affiliated banks and non-banking subsidiaries of your foreign head office/parent
- Note: Follow the FR 2950/2951 rules _not_ the Call Report rules

## RELATIONSHIP CHART FOR REPORTING TIC OWN FOREIGN OFFICE

- FOREIGN
- BHC

**Do Not Include with**
**Own Foreign Offices**

- FOREIGN PARENT
-  BANK

**Include with Own **
**Foreign Offices**

- NY
- BANKING
- BRANCH/IBF

- TOKYO
- NONBANKING
- OFFICE

- MADRID
- BANKING
- BRANCH

- ROME
- BANKING
- BRANCH

- LONDON
- NONBANKING
- OFFICE

**TIC **
**REPORTER**

**Include with Own**
**Foreign Offices**

**Do Not Include with **
**Own Foreign Offices**

**Include with Own Foreign Offices**

## DEFINITIONS

- 	Brokerage Balances
- Cash balances
- held by U.S residents in brokerage and margin accounts with foreigners (liability)
- held by foreign residents in brokerage and margin accounts at U.S. resident entities (claim)
- Reported gross
- Represent funds that are freely withdrawn or held to support positions in futures, securities or other financial instruments

**Notes:**
 Cash proceeds from selling securities short.
 Cash margin or collateral placed to support open positions in futures (initial, maintenance and margin) or options on exchanges, over-the-counter derivatives, and excess cash margin or collateral retained from previous settlements of positions.  
 Cash margin lent to foreigners for their purchases of securities.
 Cash interest and dividends on securities that have been pledged as collateral with foreigners.

## DEFINITIONS

- 	Credit Balances
- Liabilities to a third party that are incidental to, or that arise from, the exercise of banking powers, including the payment of checks and lending money
- Must be no larger than necessary for the specific transaction
- Reported as deposits on the BL-1
- Reported as demand deposits on the BQ-3

**Notes:**
 Cash proceeds from selling securities short.
 Cash margin or collateral placed to support open positions in futures (initial, maintenance and margin) or options on exchanges, over-the-counter derivatives, and excess cash margin or collateral retained from previous settlements of positions.  
 Cash margin lent to foreigners for their purchases of securities.
 Cash interest and dividends on securities that have been pledged as collateral with foreigners.

## DEFINITIONS

- Repurchase Agreements
- A transaction involving the _sale_ of financial assets by one party to another, subject to an agreement by the _seller_ to repurchase the assets at a specified date or in specified circumstances
- Resale Agreement (Reverse Repurchase Agreement)
- A transaction involving the _purchase_ of financial assets by one party from another, subject to an agreement by the _purchaser_ to resell the assets at a specified date or in specified circumstances

**Notes:**
 Cash proceeds from selling securities short.
 Cash margin or collateral placed to support open positions in futures (initial, maintenance and margin) or options on exchanges, over-the-counter derivatives, and excess cash margin or collateral retained from previous settlements of positions.  
 Cash margin lent to foreigners for their purchases of securities.
 Cash interest and dividends on securities that have been pledged as collateral with foreigners.

## TYPES OF HOLDERS

- 	Foreign Banks
- All depository institutions (as defined under the laws of the host country) that are located outside the U.S.
- Include
- Commercial and savings banks
- Nationalized banks
- Development banks
- Discount houses
- Reporter’s banking offices located outside the U.S.
- Other banking institutions which are owned by central governments that are _not_ Foreign Official Institutions

## TYPES OF HOLDERS 

- 	Foreign Official Institutions (FOIs)
- Foreign central governments and their corresponding departments and agencies including
- Treasuries
- Ministries of finance
- Central banks, including development banks performing the functions of a FOI
- Stabilization funds, including
- Official exchange control or other government exchange 	authorities

## TYPES OF HOLDERS

- 	All Other Foreigners
- Foreign securities brokers and dealers
- Departments and agencies of foreign state, provincial, and local governments
- Foreign government-sponsored corporations
- Other foreign financial and non-financial corporations, partnerships, or individuals
- Reporter’s non-banking offices and subsidiaries located outside the U.S.

**Notes:**
All other foreign located entities that do not meet the definition of “foreign bank” or foreign official institution

## INTERNET ELECTRONIC SUBMISSIONSYSTEM (IESUB)

## IESUB - FEATURES

- 	Data Submission (Initial and Revised)
-   Data Entry
-   Spreadsheet File Transfer
-   STAT File Transfer
- 	Data validation
- 	Data review
- 	Receipt
- 	Remarks
- 	Feedback

## IESUB - SECURITY

- 	Unique User-ID & Password
- 	128- bit Encryption
- 	Server-side certificate

## IESUB - COMMENTS FROM USERS

- 	User friendly and convenient
- 	Time saver
- 	Eliminates paper and fax
- 	Able to submit reports for multiple DIs to multiple 		Reserve Banks
- 	Confirmation of receipt
- 	Validity checking

## DATA ENTRY/SPREADSHEETFILE TRANSFER

- Available Forms
-   TIC BC
-   TIC BC (SA )
-   TIC BL-1
-   TIC BL-1 (SA)
-   TIC BL-2
-   TIC BL-2 (SA)

- TIC BQ-1
- TIC BQ-2
- TIC BQ-3
- TIC S
- TIC CQ-1
- TIC CQ-2

- new

## REPORT FORMS AVAILABLESTAT FILE TRANSFER

- 	 FFIEC 002
-   FFIEC 002S
-   FR 2900
-   FR 2900Q
-   FR 2950
-   FR 2951
-   FR Y-8

-   FR Y-9C
-   FR Y-9CS
-   FR Y-9ES
-   FR Y-9LP
-   FR Y-9SP
-   FR Y-11I
-   FR Y-11Q
-   FR Y-12

## NON-TIC REPORT FORMS AVAILABLE DATA ENTRY/SPREADSHEET FILE TRANSFER

- 	FR 2004A
- 	FR 2004B
- 	FR 2004C
- 	FR 2004SD
- 	FR 2004SI
- 	FR 2004WI
- 	FR 2069
- 	FR 2415W
- 	FR 2415Q
- 	FR 2415A
- 	FR 2416

-   FR 2644
-   FR 2900
-   FR 2900Q
-   FR 2915
-   FR 2950
-   FR 2951
-   FR Y-8
-   FR Y-9SP
-   FR Y-9ES
-   FR Y-12

## FOR MORE INFORMATION

**Visit**
**IESUB on the Reporting and Reserves**
**Web Site**
- http://www.reportingandreserves.org/iesub.html

## IESUB Q & A 

## TIC MONTHLY REPORT OF CLAIMS 

## 
TIC  BC

**TIC  BC**

**REPORT OF U.S. DOLLAR CLAIMS OF DEPOSITORY INSTITUTIONS, BANK HOLDING COMPANIES/FINANCIAL HOLDING COMPANIES, ** **BROKERS, AND DEALERS  ON FOREIGNERS**

**Notes:**

1)THE REORT AS OF DATE IS THE LAST BUSINESS DAY OF THE MONTH.

1)Monthly reports are due on the 15th calendar day of the month
2)US dollar denominated claims

3)balances outstanding as of the last business day of the month

## REPORTABLE CLAIMS

**REPORTABLE CLAIMS**

- 	Report U.S. dollar-denominated claims on 			foreigners unless specifically excluded, include:
- 	Affiliates
- 	Own foreign offices (both banking and non-banking)
- 	Unaffiliated counterparties

## REPORTABLE CLAIMS

- 	Deposit balances due from banks (including non-		negotiable CDs)
- 	Brokerage balances
- 	Customers’ overdrawn accounts
- 	Loans and loan participations
- 	Resale agreements and similar financing agreements
-  Negotiable CDs
- 	Short-term negotiable and non-negotiable securities
- 	Money market instruments (e.g., commercial paper, 		bankers’ acceptances) with an original maturity of one 	year or less

## SPECIFIC EXCLUSIONS

- 	Long-term securities
- 	Credit commitments (unused loan commitments)
- 	Spot foreign exchange contracts
- 	Derivatives
- 	Forward and future exchange contracts
- 	Options
- 	Warrants

## SPECIFIC EXCLUSIONS

- 	Precious metals and currencies in transit or held 		outside the U.S.
- 	Foreign-currency denominated claims
- 	Securities borrowing agreements in which one security 	is borrowed in return for another

## TYPES OF FOREIGN HOLDERS

- 	Foreign Banks and Foreign Official Institutions
- (Columns 1, 2 & 3)
- 	All Other Foreigners
- (Columns 4 & 5)

## TYPES OF INSTRUMENTS

- Non-negotiable Foreign Deposits (Column 1)
- 	Deposits
- 	Demand
- 	Time
- 	Savings
-   Non-negotiable CDs
- 	Brokerage balances from foreign banks

## TYPES OF INSTRUMENTS

- Negotiable CDs  and All Short-Term Negotiable
- Securities (Columns 2 & 4)
- 	Negotiable CDs (Column 2)
- 	Negotiable securities (Columns 2 & 4)

## TYPES OF INSTRUMENTS

- Other (Columns 3 & 5)
-  Loans
- 	Funds loaned under resale agreements
- 	Non-negotiable securities
-  Brokerage balances due from foreign securities 			brokers and dealers

## “OF WHICH”      COLUMN ITEMS

- Foreign Official Institutions (Column 7)
- 	Report all claims included in Columns 1 through 3 that 	are due from Foreign Official Institutions

## “OF WHICH”      COLUMN ITEMS

- Own Foreign Offices (Column 8)
- 	_Include_
- All claims in Columns 1 through 5 that are due from own 	foreign offices, both _banking_ and _non-banking_, including your direct foreign parent and any non-U.S. banking subsidiary or branch
- 	_Exclude_
- Claims due from other offices of affiliated banks and non-banking subsidiaries of the reporter’s parent, even though they are reportable in Columns 1 through 5

## “OF WHICH”      COLUMN ITEMS

- Resale Agreements (Column 9)
- 	Report amounts included in Columns 3 & 5 that are 		loaned to foreigners under resale agreements or similar 	financing agreements.  Report them gross ( i.e., no FIN 	41 netting)

**Notes:**
Do not report the underlying security

## MEMORANDUM ITEMS “OF WHICH” ROWS

- Total IBF Assets Row (8300-3)
- 	Report the amounts included in the Grand Total row 		(9999-6) which represent claims of your International 		Banking Facilities (IBFs) on foreigners
- Negotiable CDs (8110-8), Column 2
- 	Report the total amount included in the Grand Total 		row (9999-6) which represents negotiable CDs issued 		by foreigners

## MEMORANDUM ITEMS “OF WHICH” ROWS

- Assets Written Off This Reporting Period
- Memorandum Row (8200-9)
- 	The amount of charge-offs or specific reserves for 		reportable claims, taken partially or entirely, during the 	reporting period
- 	Only report charge-offs during the period in which 		they are established
- 	Do not include general reserves

**Notes:**
When an identified loss occurs, the amount of the loss 	should be charged-off or removed through specific 		reserves.
	The amount of the charge-off is removed from the 		body of the report and included in the Assets Written 		Off Row line (8200-9) according to classification of 		the foreigner.

## TIC MONTHLY REPORT OF LIABILITIES 

## TIC BL-1

**REPORT OF U.S. DOLLAR LIABILITIES OF DEPOSITORY INSTITUTIONS, BANK HOLDING COMPANIES/FINANCIAL HOLDING COMPANIES**, **BROKERS, AND DEALERS TO FOREIGNERS**

**Notes:**
- If you take out the report from your package it may help in following the presentation.

- In this report Bank's, selected Brokers or Dealers report their liabilities to foreigners and they are denominated in U.S. dollars
- The BL-1 is a monthly report.
- Report Dat / Filing Date/ Saturday and Sunday DUE on Monday

- Describe it EG: how many columns= 9 columns
-They are grouped by 3 customer sectors(look at report)

- Left side list of foreign countries
- Broken down by regions(read off report)-CANADA
- Within the region they are listed in alphabetical order with their respective country code
- other regional category------Geographical classification
- Grand Total Line(99996)

*** Flip to next Page***

## REPORTABLE LIABILITIES

**REPORTABLE LIABILITIES**

- 	Report all U.S. dollar-denominated liabilities to 		foreigners:
- 	Affiliates
- 	Own foreign offices (both banking and non-banking)
- 	Unaffiliated counterparties

## REPORTABLE LIABILITIES

- 	Non-negotiable deposits
- 	Brokerage balances
- 	Overdrawn deposit accounts
- 	Loans of any maturity (exclude drawn syndicated 		loans where there is a U.S administrative agent)
- 	Short-term non-negotiable securities
- 	Repurchase agreements and similar financing 			agreements

**Notes:**
Loans - excluding unused syndicated loans where there is a U.S. administrative agent

## SPECIFIC EXCLUSIONS

- 	Long-term securities
- 	Negotiable CDs
- 	Negotiable short-term securities
- 	Contingent liabilities
- 	Spot foreign exchange contracts
- 	Derivatives
- 	Future & forward exchange contracts
- 	Options
- 	Warrants

## SPECIFIC EXCLUSIONS

- 	Precious metals (e.g., gold, silver) and currencies in 		transit or held outside the U.S.
- 	Foreign-currency denominated liabilities
- 	Securities lending agreements in which one security is 	lent in return for another
- 	Loans from a foreigner that are serviced by a U.S. 		resident

## TYPES OF FOREIGN HOLDERS

- Foreign Official Institutions (Columns 1 & 2)
- Foreign Banks (Columns 3 & 4)
- All Other Foreigners (Columns 5 & 6)

## TYPES OF INSTRUMENTS

- Non-negotiable Deposits and Brokerage Balances
- (Columns 1, 3 & 5)
- 	Deposits
- Demand
- Time
- Savings
- Non-negotiable CDs
- 	Brokerage balances of foreign residents

**Notes:**
brokerage balances Exclude:
	Balances swept into MM fund, government securities fund, 		or other kind of mutual fund

## TYPES OF INSTRUMENTS

- Non-negotiable Deposits and Brokerage Balances
- (Columns 1, 3 & 5)
- _Exclude_
- 	Balances swept into money market funds, government securities funds,	or other kinds of mutual funds

## TYPES OF INSTRUMENTS

- Other Liabilities (Columns 2, 4 & 6)
- 	Non-negotiable securities issued by the reporter
-  	Loans from foreign counterparties
- 	Funds borrowed under repurchase agreements
-  	Overdrawn deposit accounts

## “OF WHICH”      COLUMN ITEMS

- Own Foreign Offices (Column 8)
- 	Include
- All liabilities in Columns 3 through 6 that are due from own 	foreign offices, both banking and non-banking, including your direct foreign parent bank and its non-U.S. banking subsidiaries and branches
- 	Exclude
- Depository institution’s liabilities due to offices of other affiliated banks and to non-banking subsidiaries of the reporter’s parents, even though they are reportable in Columns 3 through 6

## “OF WHICH” COLUMN ITEM

- Repurchase Agreements (Column 9)
- 	Report funds borrowed under repurchase agreements 		and similar financing agreements included in Columns 	2, 4 & 6. Report them gross ( i.e., no FIN 41 netting)

**Notes:**
These amounts should be reported gross (no FIN. 41 netting)

## MEMORANDUM ITEMS “OF WHICH” ROWS

- Total IBF Liabilities Row (8300-3)
- 	Report the amounts included in the Grand Total row 		(9999-6) which represent liabilities of your 			International Banking Facilities (IBFs) on foreigners
- Repurchase Agreements Row (8400-7)
- 	Report the amounts included in the Grand Total row 		(9999-6) which represents funds borrowed from 		foreigners included in columns 2, 4, 6, & 8

## MEMORANDUM ITEMS “OF WHICH” ROWS

- Non-Interest Bearing Liabilities Row (8130-2)
- Report non-interest bearing liabilities included in the Grand Total row (9999-6), columns 1 through 6 regardless of the nature of the instruments

**Notes:**
Items originally sold at a discount are considered interest-bearing even though they do not have a stated interest rate

## TIC MONTHLY REPORT OF  CUSTODYLIABILITIES 

## TIC  BL-2

**REPORT OF CUSTOMERS’  U.S. DOLLAR LIABILITIES  TO  FOREIGNERS**

## REPORTABLE CUSTOMER LIABILITIES

**REPORTABLE CUSTOMER LIABILITIES**

- U.S. dollar denominated liabilities of U.S. residents to
- foreigners
- Custody Items
- Liabilities to Managed Foreign Offices
- Loans Placed Overseas
- Short-term Negotiable Securities

## REPORTABLE CUSTOMER LIABILITIES

- Custody Items
- 	Short-term negotiable and non-negotiable debt 			securities
- 	Short-term U.S. Treasury securities
-  Short-term securities issued or guaranteed by U.S. 		government agencies and federally-sponsored 			enterprises
- 	Note: Securities that have been temporally “transferred out”	under Repurchase/Resale agreements

**Notes:**
Everything held in custody
Maturity one year or less

Sponsored agencies - FNMA, GInnie Mae

## REPORTABLE CUSTOMER LIABILITIES

- Custody Items
- 	Negotiable CDs held by the reporter for foreigners that  	are issued:
- 	by the reporter or
- 	another U.S. resident depository institution

**Notes:**
Neg cds - any maturity

## Situation 1

- 	A U.S. resident has a liability to a foreign resident in 		the form of a short-term security or a certificate of 		deposit (of any maturity)

**Notes:**
Arrows presented in the following chart do not indicate the flow of transaction.  Just for presentational purposes

The numbering scheme for the flowcharts will appear out of sync throughout the presentation.  They remain consistent with the instructions so as not to cause confusion when you try to compare what your seminar package to the instructions. 

## FLOWCHART 1a - A U.S.-resident custodian is used

**Foreign person/investor**

**U.S.-resident custodian**

- Report on the BL-2 (if U.S. dollar-denominated) or on the BQ-2, Part 2 (if foreign currency-denominated)

**Note: The U.S. resident issuer** does not report the security or CD
- on the TIC forms

## FLOWCHART 1b -Two U.S.-resident custodians are used

**U.S. issuer**

**Foreign person/investor**

**U.S. institution A that maintains a custodial relationship with U.S. resident custodian B**

**U.S.-resident institution B that is a custodian for a foreign resident or foreign custodian**

- Does not report

- Report on the BL-2 (if U.S. dollar-denominated) or on the BQ-2, Part 2 (if foreign currency-denominated

**Note:  If multiple U.S. custodians are involved, the U.S. custodian nearest the foreign end-claimant should report.**

## REPORTABLE CUSTOMER LIABILITIES

- Liabilities to Managed Foreign Offices
- 	Liabilities of _non-bank_ U.S. residents to managed 		foreign offices of the reporter
- Managed foreign offices are offices for which a majority of the responsibility for business decisions, or the responsibility for record-keeping for that foreign office resides at the reporter
- 	(See FFIEC 002s instructions for more information located on the FFIEC website at: http://www.ffiec.gov/ffiec_report_forms.html)

## REPORTABLE CUSTOMER LIABILITIES

- Loans Placed Overseas
- 	Foreign holdings of loans and loan participations to 		U.S. residents that are serviced by the reporter

## Situation 3

- 	A U.S resident has a loan from a foreigner which is 		serviced by a TIC B reporter (U.S.-resident BHC/FHC, 	depository institution, or securities broker or dealer)

## FLOWCHART 3 - Responsibility of loan servicing office

## REPORTABLE CUSTOMER LIABILITIES

- Syndicated Loans
- 	Liabilities of U.S. residents to foreigners from loan 		syndications in which the reporter is the administrative 	agent
- report portion that represents U.S. resident’s U.S. dollar denominated loan liability to a foreigner only
- report the outstanding amount drawn
- _Exclude_
- unused loan commitments
- loan liabilities in which the administrative agent is foreign

## Situation 6

- 	Drawn syndicated loans of U.S. residents held by 		foreigners

## FLOWCHART 6a - A U.S.-resident administrative agent is used

**U.S. resident borrower**

**U.S. Administrative agent**

- U.S. administrative agent reports on the BL-2 (if U.S. dollar-currency-denominated) or the BQ-2, Part 2 (if foreign currency denominated

**Drawn syndicated loan**

**Foreign lender**

## FLOWCHART 6b - No U.S.-resident administrative agent is used

**U.S. resident borrower**

- Since no U.S. administrative agent is used, the U.S. borrower reports the liability to foreigners on the BL-1 (or TIC CQ-1 if not a TIC B filer).

**Drawn syndicated loan**

**Foreign lender**

## REPORTABLE CUSTOMER LIABILITIES

- Short-term Negotiable Securities
- 	Issued by the reporter directly in a foreign market	 	where no U.S. custodian (other than the reporter) is 		used

## FLOWCHART 1c - No U.S.-resident custodian is used for a negotiable instrument

**U.S. TIC B issuer**

**Foreign-resident person or custodian**

**Note: All negotiable securities and negotiable CDs issued directly in a foreign market should be reported in this manner.**

- Report _**as a Custodian**_ on the BL-2 (if U.S. dollar-denominated) or on the
- BQ-2, Part 2 (if foreign currency-denominated)

## FLOWCHART 1d - No U.S.-resident custodian is used for a non-negotiable instrument

**U.S. TIC B issuer**

**Foreign-resident person or custodian**

**Note: On the BL-1, non-negotiable CDs are reported as “non-negotiable deposits” and non-negotiable short-term securities are reported as “other”.**

- Report _**as an Issuer**_ on the BL-1 (if  U.S. dollar-denominated) or on the
- BQ-2, Part 1 (if foreign currency-denominated)

## SPECIFIC EXCLUSIONS

- Long-term securities
- Precious metals (e.g., gold, silver) and currencies held in reporters’ vaults for foreign-residents
- Assets which have been temporarily “received in” as collateral under resale agreements or similar financing agreements

**Notes:**
equities - while they have no stated maturity they are considered long term for TIC reporting purposes

## SPECIFIC EXCLUSIONS

**SPECIFIC EXCLUSIONS**

- 	Foreign currency-denominated customers’ liabilities
- 	Spot foreign exchange contracts
- 	Derivatives
- Forward and future exchange contracts
- Options
- Warrants

**Notes:**
Foreign currency-denominated liabilities should be reported on Part 2 of the BQ-2

## TYPES OF FOREIGNER HOLDERS

**TYPES OF FOREIGNER HOLDERS**

- 	Foreign Official Institutions (Columns 1, 2 & 3)
- 	Foreign Banks (Columns 4, 5 & 6)
- 	All Other Foreigners ( Columns 7, 8 & 9)

## TYPES OF INSTRUMENTS

**TYPES OF INSTRUMENTS**

- Short-term U.S. Treasury Obligations (Columns 1, 4 & 7)
- 	Report foreign residents’ holdings of short-term 		instruments that are direct obligations of the U.S. 		Treasury

**Notes:**
Exclude:
	U.S. Government Agencies
	Federally Sponsored Enterprises
	State and Local Governments

## TYPES OF INSTRUMENTS

**TYPES OF INSTRUMENTS**

- Negotiable Certificates of Deposit and Negotiable
- Short-term Securities (Columns 2, 5 & 8)
- 	Negotiable CDs
- 	Short-term securities including
- Securities of U.S. Government agencies
- Securities of Federally sponsored enterprises
- Securities of agencies and instrumentalities of state and   local governments

## TYPES OF INSTRUMENT

**TYPES OF INSTRUMENT**

- Other Custody Liabilities (Columns 3, 6 & 9)
- Loans to U.S. residents from foreigners that are 		serviced by the reporter
- Loans to _non-bank_ U.S. residents from managed 	foreign offices of the reporter
- Syndicated loans from foreigners to U.S. residents for    which the reporter is the administrative agent
- _Custodial_ holdings of non-negotiable securities

## “OF WHICH” COLUMN ITEMS 

**“****OF WHICH” ****COLUMN ITEMS **

- Negotiable CDs (Column 11)
- 	Report negotiable CDs held for foreign residents 		included in columns 2, 5 or 8

## 
TIC BL-2
MEMORANDUM ROWS
LIABILITIES BY SECTOR OF U.S. DEBTOR 
AND BY INSTRUMENT

**TIC BL-2**
**MEMORANDUM ROWS**
**LIABILITIES BY SECTOR OF U.S. DEBTOR **
**AND BY INSTRUMENT**

**Notes:**
(Only selected categories of liabilities, are required to be reported)

## MEMORANDUM ROWS

- Total Bank Debt Row (8102-7)
- 	The total of all liabilities included in column 10 of the 	Grand Total Row (9999-6) for which U.S. depositories 	are the debtors.

## MEMORANDUM ROWS

- Loans to Banks Row (8141-8)
- 	Loans to U.S. banks from foreigners that are included 		in the 	Total Bank Debt Row (8012-7)
- 	Funds received from repurchase agreements and 		similar financing agreements included in Total Bank 		Debt Row  (8012-7)

## MEMORANDUM ROWS

- Short-term Negotiable Securities Issued by Banks
- Row (8142-6)
- 	Short-term negotiable securities issued by U.S. 			depositories	held by foreigners that were included in 		the Total Bank Debt Row (8141-8)
- 	_	__Exclude_
- 	Negotiable CDs
- 	Non-Negotiable Securities

## MEMORANDUM ROWS

- Total General Government Row (8144-2)
- 	Report the total of all debt issued by the:
- 	U.S. Treasury
- 	U.S. state and local governments
- _Exclude_
- U.S. Government Agencies
- Federally Sponsored Enterprises
- U.S. Government Corporations

## MEMORANDUM ROWS

- U.S. Agencies Row (8146-9)
- 	Report the total of all debt, including mortgage-backed securities, issued by, or guaranteed by
- U.S. Government Agencies
- Federally Sponsored Enterprises
- U.S. Government Corporations
- _Exclude_
- Privately-issued mortgage-backed securities that are guaranteed by the U.S. government or federally sponsored enterprises, even if underlying collateral is government guaranteed

**Notes:**
that were reported in the Grand Total Row (9999-6)

Include
Mortgage-backed securities
Participation certificates
Pass-throughs
CMOs
REMICs

## MEMORANDUM ROWS

- Other Short-term Negotiable Securities Row (8150-3)
- 	Report short-term negotiable securities issued by U.S.		institutions other than:
- U.S. Banks
- Federal Government
- State and Local Governments
- U.S. Government Agencies

## MEMORANDUM ROWS

- Loans to Others Row (8155-8)
- Report all loans from foreigners to U.S. residents other than to U.S. Banks and U.S. Governments and Agencies
- _Include_
- Funds received from repurchase agreements and similar financing agreements
- Loans to U.S. residents from foreigners that are serviced by the reporter
- Loans to _non-bank_ U.S. residents from managed offices of the reporter

## TIC QUARTERLY REPORT OF CLAIMS 

## TIC  BQ-1

**REPORT OF CUSTOMERS’ U.S. DOLLAR CLAIMS ON FOREIGNERS**

## WHAT TO REPORT

**WHAT TO REPORT**

- 	U.S. dollar-denominated claims of U.S. residents on 		foreigners:
- 	Custody items
- 	Claims on managed foreign offices
- 	Funds placed overseas
- 	Brokerage balances

## REPORTABLE CUSTOMER CLAIMS

- Custody Items
- 	Claims on foreign residents that a reporter holds in 		custody for the account of U.S. residents
- Short-term negotiable and non-negotiable debt 		securities issued by a foreigner
- Securities that have been temporarily 			“transferred out” under repurchase or similar agreements
- Negotiable CDs of any maturity issued by a foreigner and held by the reporter for U.S. residents

**Notes:**
Short-term is an original maturity of one year or	less
	Include money market instruments

## Situation 2

- 	A U.S. resident has a claim on a foreign resident in the 	form of a short-term security or a certificate of deposit 	(of any maturity)

## FLOWCHART 2a - U.S.-resident custodian is used

**U.S. person/investor**

**U.S.-resident custodian**

- Report on the BQ-1 (if U.S. dollar-denominated) or on the BQ-2, Part 1 (if foreign currency-denominated).

## FLOWCHART 2b - No U.S. resident custodian is used

**U.S. person/investor**

**Foreign  custodian, debtor, or issuer**

- Report on the BC (if U.S. dollar-denominated) or on the BQ-2, Part 1 (if foreign currency-denominated) or on the TIC CQ-1 (if not a TIC B report filer).

## FLOWCHART 2c - U.S.-resident custodian and a U.S resident subcustodian is used

**Note: The custodian closest to the U.S.-resident claimant reports.  The U.S. issuer does not report.**

## REPORTABLE CUSTOMER CLAIMS

- Claims on Managed Offices
- 	Claims of _non-bank_ U.S. residents on managed offices 	of the reporter

**Notes:**
Managed foreign offices are offices for which a majority of the responsibility for business decisions, or the responsibility for record-keeping for that foreign office resides at the reporter

## Situation 4

- 	A U.S. resident has a claim on a foreign office which is 	managed by the U.S. office of a depository institution

## FLOWCHART 4a - Claims of a U.S. resident other than a BHC/FHC, depository institution, or securities broker or dealer

**U.S. resident (other than BHC/FHC, depository institution, broker or dealer)**

**Foreign (e.g., Nassau) office of Bank A**

**U.S. office of Bank A**

- Report the claims on the TIC BQ-1 (if U.S. dollar-denominated) or on the BQ-2, Part 1 (if foreign currency-denominated) as “Other Customers’ Claims.”

**Claims in the form of deposits or loans**

**Managed by:**

## FLOWCHART 4b - Claims of a U.S. resident BHC/FHC, depository institution, or securities broker or dealer

**U.S. resident BHC/FHC, depository institution, broker or dealer**

**Foreign (e.g., Nassau) office of Bank A**

**U.S. office of Bank A**

- Report the claim on the BC (if U.S. dollar-denominated) or on the BQ-2, Part 1 (if foreign currency-denominated)

**Claims in the form of deposits or loans**

**Managed by:**

- Does not report

## REPORTABLE CUSTOMER CLAIMS

- Funds Placed Overseas
- Claims of U.S. residents on foreign offices of the reporter resulting from the reporter transferring funds from the accounts of U.S. residents from the reporters’ books to the books of foreign offices under pre-arranged “sweep” agreements

## Situation 5

- 	The assets of a U.S. resident are “swept” into an 		overseas account or asset.

## FLOWCHART 5 - Funds “swept” Overseas

**U.S. person/investor**

**Foreign (e.g., Nassau) office of Bank A**

**U.S. resident’s account at a foreign office or institution or other asset**

- U.S. office reports as a custody claim on the BQ-1 (if dollar denominated) or on the BQ-2, Part 1 (if foreign currency denominated).

**Transfers funds in account at U.S. office to a foreign account under prearranged sweep agreement**

## REPORTABLE CUSTOMER CLAIMS

- Brokerage Balances
- Brokerage balances of U.S. residents placed abroad through the reporter

## SPECIFIC EXCLUSIONS

- 	Long-term securities
- 	Assets held in custody for customers, which have been 	temporarily received in as collateral under resale 		agreements or similar financing agreements
- 	Foreign currency-denominated claims
- 	Administrative agents for syndicated loans should 		exclude loans to foreign borrowers by U.S. creditors
- 	A reporter’s own claims

**Notes:**
No contractual maturity
Original maturity of over one year

## TYPES OF INSTRUMENTS

- Non-negotiable Foreign Deposits (Column 1)
- 	Deposits of non-bank U.S. residents that are held at 		managed foreign offices of the reporter
- 	Claims of U.S. residents on foreign offices of the 		reporter resulting from the reporter transferring funds 		from the accounts of U.S. residents from the reporter’s 	books	to the books of foreign offices as a _deposit_ under 	pre-arranged “sweep” agreements
- 	Brokerage balances of U.S. residents placed abroad

**Notes:**
Funds transferred into non-deposit accounts (loans) at 		foreign offices under pre-arranged “sweep” agreements.  		

## TYPES OF INSTRUMENTS

- Negotiable CDs  (Column 2)
- 	U.S. residents’ holdings of negotiable CDs issued by 		foreign banks

**Notes:**
of any maturity 

## TYPES OF INSTRUMENTS

- All Short-term Negotiable Securities (Column 3)
- 	U.S. residents holdings of short-term negotiable 		securities issued by foreigners

## TYPES OF INSTRUMENTS

- Other Claims (Column 4)
- 	U.S. residents’ holdings of non-negotiable securities 		issued by foreigners
- 	Claims in the form of borrowings by non-U.S. 			residents on managed offices of the reporter

## TYPES OF INSTRUMENTS

- Other Claims (Column 4)
- 	Claims of U.S. residents on foreign offices of the 		reporter resulting from the reporter transferring funds 		from the accounts of U.S. residents from the reporter’s 	books to the books of the foreign offices in the form of 	a borrowing under pre-arranged “sweep” agreements

**Notes:**
Funds transferred into deposit accounts at foreign offices 	under pre-arranged “sweep” agreements (Reported in  	Column 1)

## MEMORANDUM ITEMS“OF WHICH” ROWS

- Commercial Paper Memorandum (Row 8161-2)
- 	Report the amount issued by foreigners and held for 		the account of U.S. residents that is included in the 		Grand Total (Row 9999-6)
- Claims of U.S. Banks Memorandum (Row 8163-9)
- 	Report the amounts for which U.S. depository 			institutions are the customer of the reporter

## TIC QUARTERLY REPORT OF FOREIGN CURRENCY CLAIMS AND LIABILITES 

## TIC BQ-2 

**PART 1 - REPORT OF FOREIGN CURRENCY LIABILITIES AND CLAIMS OF DEPOSITORY INSTITUTIONS, BANK HOLDING COMPANIES/FINANCIAL HOLDING COMPANIES, BROKERS AND DEALERS, AND OF THEIR DOMESTIC CUSTOMERS VIS-A-VIS FOREIGNERS**

## CURRENCY CONVERSION

**CURRENCY CONVERSION**

- 	All figures should be converted to U.S. dollars using 		the spot exchange rate on the as of date of the report

## TYPES OF INSTRUMENTS

- Reportable Own Liabilities (Columns 1 & 2)
- Non-negotiable foreign deposits (Column 1)
- 	CDs
- 	Time
- 	Demand
- 	Savings (of any maturity)
- 	Brokerage balances

## TYPES OF INSTRUMENTS

- Other Liabilities (Column 2)
- 	Overdrawn deposits accounts
- 	Loans (any maturity)
- 	Short-term non-negotiable securities (an original 		maturity of one year or less)
- 	Repurchase agreements and similar financing 			agreements

**Notes:**
Exclude Negotiable CDs and short term securities 	

## TYPES OF INSTRUMENTS

- Other Liabilities (Column 2)
- _Exclude_
- Loans from a foreigner that are serviced by a U.S. resident
- Security lending agreements
- Spot foreign exchange contracts
- Derivatives

**Notes:**
Exclude Negotiable CDs and short term securities 	

## TYPES OF INSTRUMENTS

- Reporters Own Claims (Columns 3 & 4)
- Non-negotiable foreign deposits (Column 3)
-  	All deposit balances due from foreign banks
- 	Brokerage balances due from foreign security brokers 		and dealers and foreign banks

**Notes:**
deposits = time deposits
savings deposits
demand deposits

## TYPES OF INSTRUMENTS

- Reporters Own Claims (Columns 3 & 4)
- Other Claims (Column 4)
-  	Negotiable CDs and all short-term securities
- 	Customer’s overdrawn accounts
- 	Loans and loan participations of any maturity
- 	Resale agreements and similar financing agreements
- 	Money market instruments

**Notes:**
deposits = time deposits
savings deposits
demand deposits

## TYPES OF INSTRUMENTS

- Customers’ Claims (Columns 5 & 6)
- Non-negotiable Foreign Deposits (Column 5)
- 	Deposits of _non-bank_ U.S. residents that are held at 		managed foreign offices of the reporter
- 	Claims of U.S. residents on foreign offices of the 		reporter resulting from the reporter transferring funds 		from the accounts of U.S. residents from the reporter’s 	books to the books of foreign offices as a _deposit_ under 	pre-arranged “sweep” agreements

## TYPES OF INSTRUMENTS

- Other Customers’ Claims (Column 6)
- 	U.S. residents’ holdings of all other reportable claims
- Non-negotiable securities of foreigners
- Non-deposit claims of non-bank U.S. residents on managed   offices of the reporter

## TYPES OF INSTRUMENTS

- Other Customers’ Claims (Column 6)
-  Claims of U.S. residents on foreign offices of the 		reporter resulting from the reporter transferring funds 		from the accounts of U.S. residents from the reporter’s 	books to the books of foreign offices in the form of a 		_borrowing_ under pre-arranged “sweep” agreements

## MEMORANDUM ITEMS “OF WHICH” ROWS

- Total IBF Liabilities/Assets Memorandum Row
- (Row 8300-3)
- 	Report the amounts included in the Grand Total Row 		(Row 9999-6) which represent the liabilities (columns  	1 & 2) or claims (columns 3 & 4) of the reporter’s  		International Banking Facilities (IBFs) to foreigners

## MEMORANDUM ITEMS “OF WHICH” ROWS

**MEMORANDUM ITEMS**** “OF WHICH” ROWS**

- Foreign Currency Detail Report Memorandum
- Rows (8500-1 to 8500-4)
- 	Report the amounts that are denominated in:
- 	Canadian Dollars
- 	Euros
- 	Sterling
- 	Japanese Yen

## MEMORANDUM ITEMS “OF WHICH” ROWS

- Negotiable CDs Memorandum Row (8110-8)
- Report in columns 4 & 6, the total amount included in the Grand Total row (9999-6) which represents negotiable CDs issued by foreigners

## MEMORANDUM ITEMS “OF WHICH” ROWS

- Short-term Negotiable Securities Memorandum
- Row (8120-5)
- 	Report in columns 4 & 6, all short-term negotiable 		securities issued by foreigners

**Notes:**
(including money market instruments) with 		an original maturity of one year or less

Exclude
Negotiable CDs and	non-negotiable securities

## MEMORANDUM ITEMS “OF WHICH” ROWS

- Repurchase/Resale Agreements Memorandum
- Row (8400-7)
- 	Report in column 2 of this row funds borrowed from 		foreigners under repurchase agreements and similar 		financing arrangements
- 	Report in column 4 of this row, funds loaned to 			foreigners under resale agreements and similar 			financing arrangements

## TIC BQ-2 

**PART 2 - REPORT OF CUSTOMERS’ FOREIGN CURRENCY LIABILITIES TO FOREIGNERS**

## REPORTABLE CUSTOMER’S LIABILITIES

**REPORTABLE CUSTOMER’S LIABILITIES**

- Foreign-currency denominated liabilities of U.S. residents
- to foreigners including
- Custody Items
- Liabilities to Managed Foreign Offices
- Loans Placed Overseas
- Short-term negotiable securities

## TYPES OF INSTRUMENTS

- Negotiable CDs (Column 1)
- 	Report foreign residents’ holdings of negotiable 		CDs
- All Short-term Negotiable Securities (Column 2)
- 	Foreign-resident holdings of negotiable securities
- Other Liabilities (Column 3)

## TYPES OF INSTRUMENTS

- Other Liabilities (Column 3)
- 	Report foreign residents’ holding of all liabilities 		other than negotiable CDs, and negotiable securities
- 	Loans to U.S. residents that are serviced by the 			reporter
- 	Loans to non-bank U.S. residents from managed 		foreign offices of the reporter
- 	Holdings of non-negotiable securities

## TIC QUARTERLY REPORT OF MATURITIES OF SELECTED LIABILITIES 

- new

## TIC  BQ-3 

**REPORT OF MATURITIES OF SELECTED LIABILITIES OF DEPOSITORY INSTITUTIONS, BANK HOLDING COMPANIES/FINANCIAL HOLDING COMPANIES BROKERS AND DEALERS TO FOREIGNERS**
**  **

## WHAT TO REPORT

- 	Remaining Maturity
- 	Remaining maturity is the amount of time remaining from 		the report date until the final contractual maturity date or the 	next call date
- Treatment of Foreign Currency Denominated Liabilities
- Convert to U.S. dollars equivalent using the spot exchange rate on the as of date

**Notes:**
Non-security liabilities reported on the BL-1 & BQ-2, Part 1 by remaining maturity
	Non-Negotiable Deposits and Brokerage Balances
	Repurchase Agreements and Other Liabilities
	Loan Liabilities excluding repurchase agreements

## FORM BQ-3MATURITIES OF SELECTED LIABILITIES

## ROW DEFINITIONS

- 	Demand Deposits (Row 8010-1)
- Amount of non-interest bearing liabilities that are payable 	on demand
- 	Arrears (Row 8020-9)
- Amount of liabilities to foreigners that are past due.  A 	liability is past due when principal or interest due is unpaid 	for 30 days or more

## ROW DEFINITIONS

- 	Non-Interest Paying Items Without a Fixed Maturity 		Including Repos Under Continuing Contract           		(Row 8030-6)
- Non-interest bearing liabilities to foreigners that have no 	stated maturity or that rollover under continuing contract,  excluding demand deposits.

**Notes:**
(Items originally sold at a discount are considered interest-		bearing, even if they do not have a stated interest payment.  	Therefore, exclude liabilities sold at a discount.)

## ROW DEFINITIONS

- 	Other Items Without a Fixed Maturity Including Repos 	Under a Continuing Contract (Row 8040-3)
- 	Interest-bearing liabilities to foreigners that have no stated 		maturity or roll-over under continuing contract

## ROW DEFINITIONS

- _	__Time Remaining to Maturity:_
- 		90 Days or Less		(Row 8051-9)
- 		Over 90 to 180 Days	(Row 8052-7)
- 		Over 180 to 270 Days	(Row 8053-5)
- 		Over 270 to 1 year		(Row 8054-3)
- 		Over 1 year to 2 years	(Row 8055-1)
- 		Over 2 years 			(Row 8057-8)

**Notes:**
Year may be defined based upon 360 days, 365 days or 1 calendar year based on the reporter's business practices

For Rows 8051-9 to 8057-8, report liabilities to foreigners 		(both U.S. dollar and FX denominated) for the appropriate 		time remaining to maturity.

## TIC SEMIANNUAL REPORTS 

##  TIC BC (SA), BL-1(SA) and BL-2 (SA)

** **

## PURPOSE 

- 	To capture data in countries not listed separately on the 	monthly report forms
- Data are reported in millions of dollars, on a gross basis
- Data reported should be the balances outstanding at the 	“close of business “ of the last business day of June or December
- Due no later than the 30th calendar day of the following month
- Each “Region Total” reported on the semiannual report form must equal the corresponding “Other” category on the monthly report

**Notes:**
of which memo rows not collected on the semi annual forms - reduces reporter burden

## REPORTING CRITERIA

- 	Claims on or liabilities to counterparties residing in the 	following regions
- 	Other Europe
- 	Other Latin America
- 	Other Caribbean
- 	Other Asia
-  	Other Africa
- 	All Other

**Notes:**
Refer to geographical classification 

- Question & Answers

**Notes:**
Refer to geographical classification 

## TIC B WORKSHOP & ANSWERS

## WORKSHOP

- You are the manager of Bank Lundy, NY Branch.  As such, you are responsible for the filing of the TIC Banking reports.  The Head Office for Bank Lundy, NY Branch, is located in Paris, France.
- The NY Branch acts as custodian for assets of its customers and is the U.S. sub-custodian for the Head Office.  In addition, the Branch uses Reliable Bank, NY, as a custodian.  Bank Lundy, NY Branch, is a participant of the Depository Trust and Clearing Company (DTCC).
- The balances are outstanding as of the last business day of June and are short-term unless otherwise specified.  The amounts are in millions of U.S. dollars.  Please indicate which report(s), what column(s) and opposite which country(s) or International and Regional Organization(s) the following balances should be reported.

## BC WORKSHOP

- 1.	Bank Lundy, NY Branch, entered into a resale agreement with 	Trusty Securities, Germany, whereby the Branch received $150M	 5-year U.S. Treasury notes as collateral against payment of $144M.
- 	Bank Lundy, NY Branch, should file:

**Notes:**
Bank Lundy, NY Branch= Depository Institution located in the U.S.

They have a claim on
Trusty Securities, Germany

The data is captured in col.5 because Trusty does not meet the definition of a frgn bank or frgn official institution.

Col.6 is the grand total 

$ 144 M is report because that was the amount which was lent . Please do not report the value of the collateral.

The $ 144m must also be reported in col. 9 resale column

## BC WORKSHOP

- 2.  Bank Lundy, NY Branch, granted a loan to the Ministry of Finance of          Canada in the amount of $95M and its Paris head office, for $45M.
- 	Bank Lundy, NY Branch, should file:

**Notes:**
Bank Lundy again is the depository institution in the U.S.. They have a claim to
the ministry of finance of Canada(A Foreign official institution)
It’s not a deposit nor a neg CD or Money Market this leaves us left with col.3 

## BC WORKSHOP

- 3. Bank Lundy, NY Branch, placed funds in their own brokerage accounts held at a security broker in Paris ($100m) and a bank in Costa Rica ($65M), to support futures positions.
- 	Bank Lundy, NY Branch, should file:

**Notes:**
Bank Lundy Depository Institution in the U.S. they have a claim on their H/O

This means that col. 1,2,& 3 are excluded since this only pertains to foreign banks and foreign official institution.

This leaves col. 4 and 5 

## BL-1 WORKSHOP

- 1. A Bank in Germany opened a $55M non-interest bearing deposit with Bank Lundy, NY Branch.
- 	Bank Lundy, NY Branch, should file:

## BL-1 WORKSHOP

- 2. A bank in Germany placed $75M in an overnight deposit with your IBF.
- 	 Bank Lundy, NY Branch, should file:

## BL-1 WORKSHOP

- 3.  Bank Lundy, NY Branch issued $100M of non-negotiable CDs of which:
- $50M was issued to the Bank for International Settlements (BIS), Switzerland,
- $35M to Shima Bank, Japan, and
- $15M to Resorts Inn, Guam;
- 	 Bank Lundy, NY Branch, should file:

## BL-1 WORKSHOP

- 6. Bank Lundy, NY Branch borrowed  $75M from Reliable Bank, Switzerland.  The loan is serviced by Reliable Bank, New York.
- 	 Bank Lundy, NY Branch, should file:

## BL-2 WORKSHOP

- 1. A bank located in Germany purchased $60M U.S. Treasury Bills for which Bank Lundy, NY Branch acts as custodian.  The bank, in turn, entrusted the assets to Reliable Bank NY.

## BL-2 WORKSHOP

- 2.  A bank located in Germany purchased $70M negotiable CDs issued by Guarantee Bank, Dallas, held by Bank Lundy, NY Branch, as custodian.
- Bank Lundy, NY Branch, should file:

## BL-2 WORKSHOP

- 4. Bank Lundy, NY Branch manages the safekeeping of $80M FNMA discount notes for Volkswagen, Germany, which have entrusted to Reliable Bank, NY, for Bank Lundy, NY Branch’s own account.
- 	 Bank Lundy, NY Branch, should file:

## BL-2 WORKSHOP

- 9.  Bank Lundy, NY Branch acts as administrative agent for a syndicated $500M loan of Volkswagen, Germany to Volkswagen, New York.  $100M of the loan was drawn down.
- 	 Bank Lundy, NY Branch, should file:

## BL-2 WORKSHOP

- 11. Bank Lundy, Paris (Head Office) holds an $80M loan for ABC Trucking, 	San Diego.  Bank Lundy, NY Branch acts as administrative agent for 		the loan.
- 	 Bank Lundy, NY Branch, should file:

## BQ-1 WORKSHOP

- 1. Bank Lundy, NY Branch purchased a $72M negotiable CD issued by Reliable Bank, Cayman Islands, which you have entrusted to Reliable Bank, NY for safekeeping.
- 	 Bank Lundy, NY Branch, should file:

## BQ-1 WORKSHOP

- 2. Bank Lundy, NY Branch manages the safekeeping of $25M, 2-year participation in a loan to a chocolate factory in Belgium, for Walt Disney & Co. California.
- 	 Bank Lundy, NY Branch, should file:

## BQ-1 WORKSHOP

- 5. Bank Lundy, NY Branch transferred $150M on its books from the account of JP Morgan Chase, New York, into a loan account in the form of a borrowing at Bank Lundy, Hong Kong under a pre-arranged “sweep” agreement.
- 	 Bank Lundy, NY Branch, should file:

## BQ-1 WORKSHOP

- 6. Bank Lundy, NY Branch manages the safekeeping of $350M U.S. dollar-denominated commercial paper issued by Danish Bakery of Denmark, held at DTCC for ABC Company of Florida.
- 	 Bank Lundy, NY Branch, should file:

## BQ-2 WORKSHOP

- 1. Bank Lundy, NY Branch purchased $15M equivalent of yen-denominated Japanese Treasury bills held at Bank Lundy, Hong Kong.
- 	 Bank Lundy, NY Branch, should file:

## BQ-2 WORKSHOP

- 2. Bank Lundy, NY Branch manages the safekeeping of $20M equivalent Sterling-denominated, 6-month notes issued by Volkswagen USA and guaranteed by Volkswagen, Germany, for San Juan Hotel, Puerto Rico.
- 	 Bank Lundy, NY Branch, should file:

## BQ-2 WORKSHOP

- 4. Bank Lundy, NY Branch manages the safekeeping of $75M Euro equivalent collection items payable by U.S. car importers for Volkswagen, Germany.
- 	 Bank Lundy, NY Branch, should file:

## BQ-2 WORKSHOP

- 5. Bank Lundy, NY Branch executed a $50M Sterling equivalent acceptance payable to Rolls Royce, Canada, payable by U.S. importers.
- 	 Bank Lundy, NY Branch, should file:

## BQ-3 WORKSHOP

- 1. Bank Lundy, NY Branch issued $300m of negotiable CDs’ which $150m was issued to the Bank of Niagara, Canada.
- 	 Bank Lundy, NY Branch, should file:

## BQ-3 WORKSHOP

- 2. Bank Lundy, NY Branch entered into a repurchase agreement with the Central Bank of Bahamas, where the branch sold U.S. Treasury Notes to the National Bank of Bahamas against payment of $200m with the intentions of repurchasing the Treasury Notes (which mature in one year) on September 30.
- 	 Bank Lundy, NY Branch, should file:

## BQ-3 WORKSHOP

- 3. Canadian Inc, Canada opened a 2-year, $90M time deposit account denominated in Japanese Yen at Bank Lundy, NY Branch.
- 	 Bank Lundy, NY Branch, should file:

- THE END