A1a Due to Other Depository Institutions

1. A1aDue to Other Depository Institutions

2. A1a – Due to Depository Institutions • Include demand deposits by the following institutions: • Commercial Banks (U.S. & non-U.S.) • Banker’s Banks • Credit Unions, including Corporate Credit Unions • Industrial Banks • Mutual or Stock Savings Banks • Banking Edge & Agreement Corporations • U.S. Branches & Agencies of Foreign Banks

3. A1a – Due to Depository Institutions Payment Errors (errors in funds transfer) • Deposit liabilities even if: • Received accidentally • Unable to transfer

4. A1a – Due to Depository Institutions Types of Payment Errors • Duplicate Payments • Failed Payments • Misdirected Payments • Improper 3rd Party Transfers

5. A1a – Due to Depository Institutions Duplicate Payment Sending DI Receiving DI $10 Million Transfer $10 Million Transfer OOPS! No Due From (B1) or CIPC (B2) Demand Deposit until returned

6. A1a – Due to Depository Institutions FailedPayment Sending DI Receiving DI $10 Million Transfer Demand Deposit until sent No Due From (B1 or CIPC (B2)

7. A1a – Due to Depository Institutions Misdirected Payment Right Bank Sending DI No Due From (B1)or CIPC (B2) Wrong Bank $10 Million Transfer Oops! No Due From (B1) or CIPC (B2) Demand Deposit until returned

8. A1a – Due to Depository Institutions Improper Third Party Transfer Receiving DI Sending DI Settlement Period (6:00 – 6:30 EST) FEDWIRE $10 Million Transfer OOPS! Close of Fedwire 6:30 EST No Due From (B1) or CIPC (B2) Demand Deposit until returned

9. A1a – Due to Depository Institutions Exclude: • Balances that are not immediately available • Pass-through balances of respondents (reserve balances of another DI on deposit at the FRB) • Deposits of non-banks • Trust departments • Non-deposit trust companies • Non-depository affiliates • Foreign official banking institutions • U.S. Governmental agencies including FHLB, FDIC, NCUA, etc. • Overdrawn accounts

10. A1a – Due to Depository Institutions Most Common Reporting Problems • Time deposits • Overdrawn accounts • Non-demandable deposits • Fed funds purchased • Repurchase agreements

11. Legitimate Differences FR2900 vs. FFIEC031/041 • Correspondent pass-through reserve balances • Reciprocal balances reported gross for certain counterparties on the FR2900 • FR2900 includes deposits of non-U.S. affiliates of the reporting institution • FR2900 includes certain deposits at non-U.S. branches of the reporting institution

12. Legitimate Differences FR2900 vs. NCUA 5300 • FR2900 excludes balances at non-U.S. branches of the reporting institution

13. Legitimate Differences FR2900 vs. OTS 1313 • FR2900 excludes balances at non-U.S. branches of the reporting institution • Reciprocal balances reported gross for certain counterparties on the FR2900

14. Questions??

15. B1Due From Depository Institutions Mike Jolly

16. B1 – Due From Depository Institutions • Include balances: • Subject to immediate withdrawal on demand from U.S. offices of DI’s • No prior notice of withdrawal required • As reflected on your books rather than the correspondents’ books.

17. B1 – Due From Depository Institutions • Exclude balances: • Not subject to immediate withdrawal • Due from • Federal Reserve Banks • Federal Home Loan Banks • NCUA Central Liquidity Facility • Non-U.S. offices of depository institutions • Bank Holding Company or other non-banks • Cash items in process of collection (B2) • Overdrafts or negative balances • Deferred credit cash items • Fed funds sold or reverse repurchase agreements

18. B1 – Due From Depository Institutions Most Common Reporting Problems • Reporting FRB, FHLB, NCUA balances • Reporting negative numbers (negative due to) • Reporting deferred credit cash items • Fed funds sold

19. Reciprocal Balances Due ToDue From LBJ Bank $3,000 LBJ Bank $1,000 Sizemore NB $4,000 Sizemore NB $5,000 Amount to be reported in A1a??? Amount to be reported in B1??? $6,000 $7,000 or or $2,000 $1,000

20. Reciprocal Balances • Must maintain due to/due from with each other • May be reported gross or net for the following institutions: • Commercial Banks • Banker’s Banks • U.S. branches and agencies of foreign banks • Banking Edge and agreement corporations • Industrial banks

21. Reciprocal Balances • Reciprocal balances must be reported grossfor the following institutions: • Mutual or stock savings banks • Credit Unions • Savings & loans • Overdrawn accounts and negative balances cannot be: • Netted against positive balances • Shifted to the other side of the balance sheet • Must be reported as ZERO

22. Reciprocal Balances Due From LBJ Bank $4,000 Sizemore NB $3,000 Hafner FCU $1,000 Hughes S&L $1,000 Due To LBJ Bank $3,000 Sizemore NB $1,000 Hafner FCU $2,000 Hughes S&L $3,000 Amount to be reported in A1a??? Amount to be reported in B1??? $5,000 $5,000

23. Reciprocal Balances Due From LBJ Bank $3,000 Sizemore NB $2,000 Hafner FCU $2,000 Hughes S&L $5,000 Due To LBJ Bank $1,000 Sizemore NB $5,000 Hafner FCU ($4,000) Hughes S&L $1,000 Amount to be reported in A1a??? Amount to be reported in B1??? $4,000 $9,000

24. Legitimate Differences FR2900 vs. FFIEC031/041 • Respondent pass-through reserve balances • FR2900 only includes demand balances (immediately available) • FR2900 only includes DI’s in the U.S. • Reciprocal balances reported gross for certain counterparties on the FR2900

25. Legitimate Differences FR2900 vs. NCUA 5300 • FR2900 only includes demand balances immediately available • FR2900 only includes DI’s in the U.S. • FR2900 excludes balances at non-U.S. branches of the reporting institution

26. Legitimate Differences FR2900 vs. OTS 1313 • Reciprocal balances - reported gross for certain counterparties on the FR2900 • FR2900 excludes balances at non-U.S. branches of the reporting institution • FR2900 excludes FHLB balances • FR2900 only includes demand balances (immediately available) • FR2900 only includes DI’s in the U.S

27. Questions??

28. Contact Information • Rich Nabring, Coordinator • Federal Reserve Bank of Cleveland • 216/579-2157 • rnabring@clev.frb.org