Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 7947

Call confidentiality applies to FFIEC 031/041.

Data Description:

The last eight-calendar-quarter average ratio of revenue derived from bank-ineligible securities underwriting and dealing to total gross revenues, less any reported neutral revenues is computed and reported in this item. The unadjusted two-year ratio therefore consists of the ratio of bank-ineligible revenue (item 5117) divided by the total gross revenue (item 5119) minus neutral revenue (item 8299), computed using revenues from the last eight calendar quarters. Neutral revenues are revenues derived from obligations representing interests in a pool of bank loans, such as mortgage loans, retail loans to finance the purchase of motor vehicles, or loans generated from revolving credit card accounts, where the loans comprising the pool were originated or purchased by an affiliated bank. The unadjusted two-year ratio is reported in item 7888. During the first two year period, in which a Section 20 subsidiary engages in bank-ineligible securities activities, the amount of revenues derived from bank-ineligible securities during the initial two year period (the time period may be less than two years from commencement of operations) is summed and that amount is divided by the total gross revenues less any neutral revenue during the same period. After the first two years, the amount of bank-ineligible revenues derived from securities activities for the last eight calendar quarter-ends is summed and that amount is divided by the aggregate gross revenues less any neutral revenues earned during the same time period. The percentage is reported as having been extended to two decimal places (e.g. 09.58 percent). NOTE: Reported in Schedule SUD-I for the FR Y-20 report.