FED published the OMB supporting statement on the single-counterpary credit limits (SCCL) for large banks. FED, under delegated authority from the Office of Management and Budget (OMB), proposed to implement the SCCL (FR 2590; OMB No. 7100-NEW) reporting form and the associated notice requirements in connection with single-counterparty credit limits (SCCL) set forth in the Regulation YY (SCCL rule). On August 06, 2018, FED had published an initial notice on FR 2590 in the Federal Register (83 FR 38303), the comment period for which expires on October 05, 2018.
This proposed information collection is authorized under section 165(e) of the Dodd-Frank Act. The SCCL reporting form would provide FED with information to monitor a covered company’s or a covered foreign entity’s compliance with the SCCL rule. The SCCL rule requires each covered company and covered foreign entity to calculate its aggregate net credit exposure, gross credit exposure, and net credit exposure to a counterparty using the methods in this rule, and sets limits on the aggregate net credit exposure each such company may have to the counterparty. Under this, a covered company is any U.S. bank holding company with consolidated assets of USD 250 billion or more and any U.S. bank holding company identified as a global systemically important bank holding company (G-SIB) under Regulation Q. A covered foreign entity is any entity that is part of the combined U.S. operations of a foreign banking organization with consolidated assets of USD 250 billion or more and any U.S. intermediate holding company of a foreign banking organization with consolidated assets of USD 50 billion or more. Certain provisions in the SCCL rule permit a covered company or covered foreign entity to request temporary relief from specific requirements of the rule.
Based on data as of December 31, 2017, the FR 2590 respondent panel would consist of 10 U.S. bank holding companies, 12 U.S. intermediate holding companies, and 82 foreign banking organizations. The total annual burden for FR 2590, including one-time implementation costs, is estimated to be 238,086 hours for all respondents.
Comment Due Date: October 05, 2018
Keywords: Americas, US, Banking, Reporting, FR 2590, SCCL, G-SIB, Systemic Risk, FED
Previous ArticleEBA Single Rulebook Q&A: First Update for August 2018
APRA is consulting on the reporting standard for credit risk management (ARS 220.0).
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
ISDA launched the IBOR Fallbacks Supplement and the IBOR Fallbacks Protocol, with both becoming effective on January 25, 2021.
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
Ambassadors of EU member states agreed on the mandate of European Council on the Capital Markets Recovery Package, to support economic recovery from the COVID-19 crisis.