U.S. intermediate holding company and the FR Y-9C

Consolidated Financial Statements for Holding Companies

Sections 165, 166, 167, and 168 of the Dodd-Frank Act (12 U.S.C. 5365, 5366, 5367, and 5368), require the Board to establish enhanced prudential standards for foreign banking organizations with total consolidated assets of $50 billion or more and certain other companies.

As of July 1, 2015, Large FBOs (over $50 billion in consolidated assets and greater than $10 billion in the U.S.) will need to establish a U.S. intermediate holding company. Each U.S. intermediate holding company shall furnish, in the manner and form prescribed by the Board, any reporting form in the same manner and to the same extent as a bank holding company. This implies filing and compliance with FR Y-9C. This appears to be in addition to the FR Y-7.

The FR Y – 9C Quarterly report collects basic financial data on a consolidated basis in the form of a balance sheet, an income statement, and detailed supporting schedules, including a schedule of off balance-sheet items. The information is used to assess and monitor the financial condition of holding company organizations, which may include parent, bank, and nonbank entities. The FR Y-9C is a primary analytical tool used to monitor financial institutions between on-site inspections. The form contains more schedules than any of the FR Y-9 series of reports and is the most widely requested and reviewed report at the holding company level.

The AxiomSL solution enables large FBOs to source, enrich, calculate, analyze, disclose and reconcile data to meet reporting requirements. This solution provides traceability of data structure and drill-down capabilities and it is configured to quickly meet the changing requirements on a single platform. Currently the Domestic Call Report, and to a lesser degree the Call Report of U.S. Branches and Agencies of Foreign Banks, has similarities to the FRY 9C. AxiomSL leverages the reporting instructions where Micro Data Reference Manual (MDRM) or Box ID is the same in both reports. For MDRMs that are similar in nature but are more summarized, AxiomSL allows all details to be incorporated to satisfy both the Call and the FRY 9C. As a standard, AxiomSL offers all the edit checks, e-submissions, variance analysis, reconciliations, customized reporting, etc.