In 2003 substantial changes were made in the TIC banking data "U.S. banking liabilities to foreigners" and "U.S. banking claims on foreigners".

(For your information: No changes were made in the data "U.S. transactions with foreigners in long-term securities".)

       Beginning February 2003, a number of changes to the monthly/quarterly/semiannual TIC banking B-series data collection forms became effective. The changes in both reporting format and enhancements in data coverage were formulated by an interagency TIC User Group, which is comprised of representatives of the Department of the Treasury, the Federal Reserve Board, the Federal Reserve Bank of New York and the Department of Commerce’s Bureau of Economic Analysis. The reasons for the changes were to comply with new and expanded international standards for reporting data on portfolio investment; to reduce reporting burden; to clarify reporting concepts and instructions; and to improve the quality of the series by closing known gaps in the data. A notice of these changes and a request for public comments on these changes was published in the Federal Register in 2002, and some modifications were made in view of the comments.

       The changes in format and coverage of the B Forms also result in a break in the banking data series. Consequently, there are now separate time series for B-series data reported before February 2003 and the data reported as of February 2003 and thereafter.

       A detailed outline of the changes affecting each form is available immediately below in "Significant Reporting Changes for B-Forms". Overall, coverage has been broadened to cover the positions of U.S. broker-dealer respondents with their affiliated foreign offices. (Depository institutions and bank/financial holding companies (BHCs/FHCs) already reported these positions). Further, the scope of the reports has also been extended to include cross-border brokerage balances as well as offshore sweep accounts and loans to U.S. residents in “managed” foreign offices of U.S. reporting institutions.


April 29, 2003



February 18, 2003

Significant Reporting Changes for B-Forms
(Effective beginning with Reports as of February 28, 2003)

  1. Overall Changes
    1. Brokers and dealers will be required to report most cross-border positions with affiliates (including positions with affiliates of their parents) which are not in the form of long-term securities or derivative contracts. (Depository institutions and bank holding companies/financial holding companies (BHCs/FHCs) already report these positions.)
    2. The scope of reportable claims and liabilities of domestic customers of depository institutions, BHCs/FHCs, brokers and dealers has been expanded. Customers’ items to be reported include offshore sweep agreements, and loans to U.S. residents booked at “managed” foreign offices. The titles of the BL-2 and BQ-1 reports are changed from “Custody” claims and liabilities to “Customers’” claims and liabilities to reflect the fact that items other than traditional “custody” items are included.
    3. The scope of the reporter’s own claims and liabilities has been expanded and are defined consistently with regulatory reports such as the FR 2950/2951. It includes all amounts in the reporter’s “Due to/due from” accounts, unless in an instrument that is specifically excluded.
    4. A new form, the BQ-3, will be required for those reporters with $4 billion or more in reportable liabilities on the BL-1 or BQ-2. The form collects data on remaining maturities.
  2. Form BC/BC(SA)
    1. Claims on foreign official institutions are combined with claims on banks.
    2. Claims to own foreign offices should be included in either claims on foreign banks or claims to all other foreigners, and in a separate memorandum column.
    3. A new column to separately report negotiable CDs and other short-term negotiable securities issued by foreign banks.
    4. A new column to separately report short-term negotiable securities of all other foreigners.
    5. Elimination of the memorandum row for resale agreements.
  3. Form BL-1/BL-1(SA)
    1. The reporting of all negotiable instruments is moved to the BL-2.
    2. The columns for demand deposits and non-transaction accounts are combined.
    3. Liabilities to own foreign offices should be included in either liabilities to foreign banks or liabilities to all other foreigners, and in a separate memorandum column.
    4. A memorandum row for non-interest bearing liabilities is added
    5. The memorandum row for CDs is eliminated.
    6. The repurchase agreements memorandum row is eliminated from the semiannual report.
  4. Form BL-2/BL-2(SA)
    1. Short-term U.S. agency obligations and other negotiable and readily transferable instruments are combined.
    2. Memorandum cells are added to capture liabilities by sector of U.S. debtor and type instrument.
  5. Form BQ-1
    1. Part 1, Reporter’s Own Claims (maturity information) is eliminated.
    2. New columns to separately report negotiable CDs and other negotiable securities.
    3. Memorandum rows for commercial paper (included in the other short-term securities columns) and for claims of U.S. banks are added.
    4. The IBF memorandum row is eliminated.
  6. Form BQ-2
    1. New columns to separately report non-negotiable deposits held by foreigners and non-negotiable foreign deposits.
    2. Memorandum items have been added for negotiable CDs, negotiable short-term securities and positions collateralized through repurchase and reverse repurchase agreements.
    3. Foreign currency liabilities of the reporter’s domestic customers must now be reported in a new Part 2.
    4. The assets written off memorandum
  7. Form BQ-3
    1. Country code 80101 was renamed “Demand deposits”. In conjunction with this change, columns 2 (Repurchase agreements and other liabilities) and 3 (Loan liabilities) are no longer applicable and have been shaded.