TIC MONTHLY REPORT OF CUSTODY LIABILITIES

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TIC MONTHLY REPORT OF CUSTODY LIABILITIES Powered By Docstoc
					                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)
                        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
                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
         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)
         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)
  CONSOLIDATION RULES
      HOW TO FILE
Depository       BHCs / FHCs          Securities
Institutions                       Brokers/Dealers



      District
       FRB                 FRBNY
                       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

     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
new   Part 2 - Report of Customers’ Foreign Currency
      Liabilities to Foreigners
                       FORMS

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

Form                  As of Date                    Due Date

BC, BL-1, BL-2        Last business day of each     No later than the 15th
                      month                         calendar day of the
                                                    following month

BQ-1, BQ-2, BQ-3      Last business day of March,   No later than the 20th
                      June, September and           calendar day of the
                      December                      following month



                      Last business day of June     No later than the 30th
BC (SA), BL-1 (SA),
                                                    calendar day of the
BL-2 (SA)             and December
                                                    following month
         EXEMPTION LEVELS

   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
new
         Geographical Areas (Row 9999-6)
BQ-3     $4 Billion
             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

   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

   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
                    DEFINITIONS

   United States
    – The fifty states and the District of Columbia
    – The Commonwealth of Puerto Rico and the Northern Mariana
      Islands
    – U.S. territories
                   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
                        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
                   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
           Do Not Include with           FOREIGN
           Own Foreign Offices             BHC


           Include with Own           FOREIGN PARENT
             Foreign Offices               BANK




TIC                 NY                    MADRID             TOKYO
REPORTER         BANKING                 BANKING           NONBANKING
                BRANCH/IBF                BRANCH             OFFICE

                                      Include with Own   Do Not Include with
     LONDON               ROME                           Own Foreign Offices
                                      Foreign Offices
   NONBANKING            BANKING
      OFFICE             BRANCH

   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
                    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
                    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
            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.
 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 BQ-1
                          TIC BQ-2
TIC BC (SA )
                          TIC BQ-3
TIC BL-1
TIC BL-1 (SA)             TIC S
TIC BL-2                  TIC CQ-1
                                     new
TIC BL-2 (SA)             TIC CQ-2
          REPORT FORMS
            AVAILABLE
        STAT FILE TRANSFER
   FFIEC 002       FR Y-9C
   FFIEC 002S      FR Y-9CS
   FR 2900         FR Y-9ES
   FR 2900Q        FR Y-9LP
   FR 2950         FR Y-9SP
   FR 2951         FR Y-11I
   FR Y-8          FR Y-11Q
                    FR Y-12
NON-TIC REPORT FORMS AVAILABLE
 DATA ENTRY/SPREADSHEET FILE
           TRANSFER
   FR 2004A       FR 2644
   FR 2004B       FR 2900
   FR 2004C       FR 2900Q
   FR 2004SD      FR 2915
   FR 2004SI      FR 2950
   FR 2004WI      FR 2951
   FR 2069        FR Y-8
   FR 2415W       FR Y-9SP
   FR 2415Q       FR Y-9ES
   FR 2415A       FR Y-12
   FR 2416
   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
  REPORT OF U.S. DOLLAR
  CLAIMS OF DEPOSITORY
   INSTITUTIONS, BANK
        HOLDING
  COMPANIES/FINANCIAL
   HOLDING COMPANIES,
BROKERS, AND DEALERS ON
      FOREIGNERS
         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)
       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
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
                  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
        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
       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)
       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
TIC MONTHLY
   REPORT
OF CUSTODY
 LIABILITIES
     TIC BL-2

   REPORT OF
 CUSTOMERS’ U.S.
DOLLAR LIABILITIES
 TO FOREIGNERS
           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
           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
                      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)
         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      U.S.-resident institution B
     maintains a custodial        that is a custodian for a
     relationship with U.S.       foreign resident or foreign
     resident custodian B         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
                         Loan    Foreign issuer or foreign
U.S. resident borrower
                                 custodian
                                Serviced by:
                                  U.S. TIC B reporter



                                  Report loans to U.S.
                                  residents on the BL-2 (if
                                  U.S. dollar-denominated) or
                                  on the BQ-2, Part 2 (if
                                  foreign currency-
                                  denominated) as “Other
                                  Customers’ Liabilities.”
         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

                           Drawn syndicated
                           loan
U.S. resident borrower                           Foreign lender


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

                            Drawn syndicated
                            loan
U.S. resident borrower                              Foreign lender




                   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).
         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
                                              Foreign-resident person
           U.S. TIC B issuer
                                                   or custodian


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




Note: All negotiable securities and negotiable CDs issued directly in a
foreign market should be reported in this manner.
     FLOWCHART 1d - No U.S.-resident
     custodian is used for a non-negotiable
                   instrument
          U.S. TIC B issuer                Foreign-resident person
                                                or custodian


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




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

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

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
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
       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
         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

   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
                      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

  U.S. person/investor       Foreign issuer or foreign
                             custodian

U.S. institution A that      U.S.-resident institution
maintains a custodial        B that maintains
relationship with U.S.       custodian A’s custody
resident custodian B         account


Report on the BQ-1 (if
                                  Does not report
U.S. dollar-denominated)
or on the BQ-2, Part 1 (if
foreign currency-
denominated)                 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
                     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             Foreign (e.g., Nassau) office
  BHC/FHC, depository                   of Bank A
  institution, broker or    Claims in
                            the form of
  dealer)                                Managed by:
                            deposits or
                            loans         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.”
FLOWCHART 4b - Claims of a U.S. resident BHC/FHC,
depository institution, or securities broker or dealer


U.S. resident BHC/FHC,                          Foreign (e.g., Nassau) office
depository institution,                         of Bank A
broker or dealer
                                  Claims in
                                  the form of      Managed by:
                                  deposits or   U.S. office of Bank A
                                  loans


Report the claim on the BC (if
                                                Does not report
U.S. dollar-denominated) or
on the BQ-2, Part 1 (if foreign
currency-denominated)
           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

                                                      U.S. resident’s
                                                      account at a foreign
Foreign (e.g., Nassau) office
                                                      office or institution
of Bank A
                                Transfers funds in    or other asset
                                account at U.S.
                                office to a foreign
                                account under
U.S. office reports as a        prearranged
custody claim on the BQ-1 (if   sweep agreement
dollar denominated) or on the
BQ-2, Part 1 (if foreign
currency denominated).
           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
                 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
                TYPES OF
              INSTRUMENTS
Negotiable CDs (Column 2)
 U.S. residents’ holdings of negotiable CDs issued by
  foreign banks
                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
       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
   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
                   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
                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
                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
                  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
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
      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
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
      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.
             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)
    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
         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
Question & Answers
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:


   Report      Country Code/Country      Column         Amount To Be
                       Name                               Reported
      BC         1100-2 - Germany          5&6             $144M
      BC         “Of Which” Items
                 1100-2 - Germany           9               $144M


 (The amount lent, not the value of the collateral is reported)
                  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:

   Report     Country Code/Country      Column     Amount To Be
                      Name                           Reported
      BC         2999-8 - Canada         3&6           $95M
      BC          1080-4 - France        3&6            $45M
      BC        “ Of Which” Items
                  2999-8 - Canada         7             $95M
                  1080-4 - France         8             $45M
                 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:


    Report      Country Code/Country          Column   Amount To Be
                          Name                           Reported
      BC             1080-4 - France           5&6        $100M
      BC       3910-1 - Other Latin America    1&6         $65M
    BC (SA)        3058-9 - Costa Rica         1&6         $65M
                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:

  Report      Country Code/Country         Column   Amount To Be
                       Name                           Reported
    BL-1         1100-2 - Germany           3&7         $55M
    BL-1        “Of Which” Items
             8130-2 - Total Non-Interest
                 Bearing Liabilities        3&7        $55M
                BL-1 WORKSHOP

2. A bank in Germany placed $75M in an overnight deposit with your IBF.


   Bank Lundy, NY Branch, should file:


     Report      Country Code/Country            Column   Amount To Be
                          Name                              Reported
       BL-1         1100-2 - Germany              4&7         $75M
       BL-1        “Of Which” Items
                8300-3 - Total IBF Liabilities    4&7        $75M
                   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:

         Report      Country Code/Country        Column      Amount To Be
                             Name                              Reported
          BL-1        1800-7 - Other Europe       1&7            $50M
        BL1 (SA)          1330-7 - BIS            1&7            $50M
          BL-1           4260-9 - Japan           3&7            $35M



       The $15M is not reportable. (Guam is a territory of the United States)
                   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:


Not reportable by Bank Lundy, NY Branch, Reliable Bank, NY acting as loan
servicer for a loan to a U.S. resident should report the U.S. resident’s loan liability
to foreigners on the BL-2 (if dollar denominated) or BQ-2 (Part 2) (if foreign
currency denominated).
                    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.


         This is not reportable by Bank Lundy, NY Branch. However, Reliant Bank does
         need to file. Reliant Bank should file:


           Report     Country Code/Country          Column     Amount To Be
                               Name                              Reported
            BL-2         1100-2 - Germany           4 & 10         $60M
            BL-2       Memorandum Items
                     8144-2 - Total General Gov’t    Total        $60M


         The U.S. custodian closest to the claimant reports.
                 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:
       Report     Country Code/Country       Column      Amount To Be
                           Name                            Reported
        BL-2         1100-2 - Germany         5 & 10         $70M
        BL-2         “Of Which” Item
                      1100-2 - Germany          11           $70 M
        BL-2       Memorandum Items
                  8102-7 - Total Bank Debt    Total           $70M


   Note: Negotiable CDs issued by banks are not included in the Short-Term Negotiable
   Securities Issued by Bank (8142-6) memorandum row.
               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:

   Report     Country Code/Country       Column     Amount To Be
                       Name                           Reported
    BL-2         1100-2 - Germany        8 & 10         $80M
    BL-2       Memorandum Items
               8146-9 - U.S. Agencies     Total         $80M
                 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:

     Report     Country Code/Country       Column       Amount To Be
                         Name                             Reported
      BL-2         1100-2 - Germany         9 & 10         $100M
      BL-2       Memorandum Items
                8155-8 - Loans to Others    Total              $100M


   (Only report the portion of the loan that is drawn down.)
                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:


  Report    Country Code/Country       Column    Amount To Be
                     Name                          Reported
   BL-2         1080-4 - France        6 & 10        $80M
   BL-2      Memorandum Items
            8155-8 - Loans to Others    Total         $80M
               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:

  Report     Country Code/Country        Column   Amount To Be
                      Name                          Reported
   BQ-1      3613-7 - Cayman Islands      2&5         $72M
   BQ-1       8163-9 - Claims of U.S.
                      Banks               2&5         $72M
                 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:


  Report     Country Code/Country          Column      Amount To Be
                     Name                                Reported
   BQ-1         1025-1 - Belgium            4&5            $25M


Loan participation certificates regardless of maturity are reportable.
               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:

      Report    Country Code/Country         Column   Amount To Be
                          Name                          Reported
       BQ-1    4200-5 - Hong Kong             4&5        $150M
       BQ-1        “Of Which” Items
               8163-9 - Claims of US Banks    4&5        $150M
                 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:

       Report     Country Code/Country       Column     Amount To Be
                           Name                           Reported
        BQ-1        1050-2 - Denmark          3&5          $350M
        BQ-1        “Of Which” Items
                 8161-2 - Commercial Paper     3            $350M




     The branch is a participant of DTCC. DTCC does not know the customers of its
     participants.
                   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:

          Report     Country Code/Country        Column       Amount To Be
                              Name                              Reported
           BQ-2          4260-9 - Japan           4&7             $15M
           BQ-2        “Of Which” Items
                     8500-4 - Denominated in
                               Yen                  4             $15M

                        8120-5 - Short-term
                         negotiable security        4             $15M




        The claim is reportable opposite the direct obligor, not opposite the location of
        the custodian.
                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:

Not reportable. Domestic-to-domestic. Neither the country of currency nor the
country of the guarantor has any bearing on its reportability. The country of
obligor is the determining factor.
               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:

   Report    Country Code/Country        Column    Amount To Be
                     Name                            Reported
   BQ-2,
   Part 2     9980-5 - Total for All
            Foreign Countries & Int’l.
                & Regional Orgs.         3&4           $75M
               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:


    Report     Country Code/Country        Column    Amount To Be
                       Name                            Reported
     BQ-2,
     Part 2     9980-5 - Total for All
              Foreign Countries & Int’l.
                  & Regional Orgs.         3 &4          $50M
                 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:

 All negotiable securities and negotiable certificates of deposit are excluded from
 the BQ-3. This transaction should be reported on the BL-2 (if dollar-
 denominated) or BQ-2 (if foreign currency-denominated). U.S. held foreign
 negotiable certificates of deposits should be reported on the BC or BQ-1 (if dollar-
 denominated), or the BQ-2 (if foreign currency-denominated).
                  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:
         Report   Country Code/Country      Column     Amount To Be
                          Name                           Reported
          BQ-3           8054-3
                  Over 270 Days to 1 Year    2&4          $200M
          BL-1       3531-9 Bahamas         2 ,7 & 9      $200M
          BL-1      “Of Which” Items
                   8400-7 - Repurchase
                       Agreements            2&7          $200M
                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:

      Report    Country Code/Country     Column   Amount To Be
                         Name                       Reported
       BQ-3             8055-1
                Over 1 Year to 2 Years   1&4         $90M
       BQ-2        2999-8 Canada         1&7         $90M
       BQ-2       “Of Which” Items
               8500-4 - Denominated in
                          Yen              1         $90M
THE END