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A1a Due to Other Depository Institutions. 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

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a1a due to depository institutions
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
a1a due to depository institutions3
A1a – Due to Depository Institutions

Payment Errors

(errors in funds transfer)

  • Deposit liabilities even if:
    • Received accidentally
    • Unable to transfer
a1a due to depository institutions4
A1a – Due to Depository Institutions

Types of Payment Errors

  • Duplicate Payments
  • Failed Payments
  • Misdirected Payments
  • Improper 3rd Party Transfers
a1a due to depository institutions5
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

a1a due to depository institutions6
A1a – Due to Depository Institutions

FailedPayment

Sending DI

Receiving DI

$10 Million Transfer

Demand Deposit until sent

No Due From (B1 or CIPC (B2)

a1a due to depository institutions7
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

a1a due to depository institutions8
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

a1a due to depository institutions9
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
a1a due to depository institutions10
A1a – Due to Depository Institutions

Most Common Reporting Problems

  • Time deposits
  • Overdrawn accounts
  • Non-demandable deposits
  • Fed funds purchased
  • Repurchase agreements
legitimate differences
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
legitimate differences12
Legitimate Differences

FR2900 vs. NCUA 5300

  • FR2900 excludes balances at non-U.S. branches of the reporting institution
legitimate differences13
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
b1 due from depository institutions16
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.
b1 due from depository institutions17
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
b1 due from depository institutions18
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
reciprocal balances
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

reciprocal balances20
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
reciprocal balances21
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
reciprocal balances22
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

reciprocal balances23
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

legitimate differences24
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
legitimate differences25
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
legitimate differences26
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
contact information
Contact Information
  • Rich Nabring, Coordinator
    • Federal Reserve Bank of Cleveland
    • 216/579-2157
    • rnabring@clev.frb.org