The Federal Reserve Bank Of Boston (FRBB) administers the BIC Program, a crucial service for financial institutions. This program outlines the requirements for institutions pledging loans as collateral to the FRBB. This document provides an overview of the BIC Program, focusing on expanded reporting requirements and necessary documentation.
What is the BIC Program?
The FRB Boston BIC Program, or Borrower-in-Custody program, allows eligible institutions to pledge loans as collateral for borrowing from the Federal Reserve’s discount window. Detailed information about the program’s requirements is available in the BIC Program Requirements Handbook. Understanding this handbook is essential for participation in the program.
Expanded ALD Reporting Requirements Explained
A key aspect of the BIC program is the reporting of data elements for pledged loans. Institutions meeting specific criteria are subject to “expanded ALD reporting requirements.” This means they must report a larger set of data elements in a different format compared to institutions with standard reporting requirements.
For comprehensive details on these expanded requirements, including which institutions are affected, file format specifications, submission timelines, and collateral valuation procedures, refer to both the BIC Program Requirements Handbook and the Federal Reserve’s general Collateral information page.
The documentation needed for onboarding and maintaining a BIC arrangement differs slightly depending on whether an institution is subject to these expanded ALD reporting standards.
Forms and Documentation for BIC Program Participation
The forms required depend on whether your institution is subject to expanded ALD reporting requirements.
For Institutions NOT Subject to Expanded ALD Reporting:
- BIC Compliance Certification Form: New BIC Arrangement: This form is for institutions establishing a new BIC arrangement. Access the form here: New BIC Compliance Form.
- BIC Compliance Certification Form: Existing BIC Arrangement: Institutions with existing BIC arrangements use this form for periodic compliance confirmation. Find it here: Existing BIC Compliance Form. Consult the BIC Handbook for details on the periodic completion of this form.
For Institutions Subject to Expanded ALD Reporting:
In addition to the forms listed above for institutions not subject to expanded reporting, these institutions also need the following:
- BIC Collateral Cover Letter – New ALD Reporting Requirements: This specific cover letter must be completed, signed by authorized personnel (per OC-10 guidelines), and submitted with monthly loan trials. Download the form here: ALD Reporting Cover Letter.
- BIC Trial – New ALD Reporting Requirements: When applying for a BIC arrangement, institutions under expanded ALD reporting should use the In-scope File Format Specifications and Definitions document. This document, found on the Pledging Collateral page, is crucial for developing the monthly pledged loan trial submitted to FRBB.
Contact the FRBB Discount Window for Queries
For any questions regarding the Federal Reserve Bank of Boston’s BIC Program, especially concerning specific requirements for your institution, please contact the FRBB Discount Window directly. They can provide tailored guidance and support.
This information is intended for informational purposes related to the Federal Reserve Bank of Boston’s BIC Program as of the last updated date: 01.31.2025. Always refer to the official documents and contact the FRBB for the most current and accurate information.
