FED recently adopted two proposals to revise and extend, for three years, the monthly, quarterly, and annual capital assessments and stress testing reports (FR Y-14A/Q/M). The revisions are applicable with as of dates ranging from December 31, 2019 to December 31, 2020. The proposals involved incorporation of revisions related to both the current expected credit loss (CECL) methodology and the non-CECL methodology into the FR Y-14A/Q/M reports. FED has also published the reporting forms and instructions for FR Y-14A/Q/M (OMB No. 7100-0341).
FED, on July 31, 2019, had published two proposed notices in the Federal Register on the extension, with revision, of the Capital Assessments and Stress Testing Reports. The proposal was to implement a number of changes to certain schedules of the FR Y-14A, FR Y-14Q, and FR Y-14M reports. The proposed revisions consisted of deleting or adding items, adding or expanding schedules or sub-schedules, and modifying or clarifying the instructions for existing data items, primarily on the FR Y-14Q and FR Y-14M reports. Most of the proposed changes were intended to reduce reporting burden for firms, to clarify reporting instructions and requirements, to address inconsistencies between the FR Y-14 reports and other regulatory reports, and to account for revised rules and accounting principles. A limited number of proposed revisions would have modified the reporting requirements and added or expanded sub-schedules to improve the availability and quality of data to enhance supervisory modeling and for use in DFAST.
The proposed revisions were also meant to address the revised accounting for credit losses under the FASB Accounting Standards Update (ASU) No. 2016-13, titled Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and implement the CECL accounting methodology across all of the FR Y-14 reports. The proposed changes to the FR Y-14 reports paralleled the related changes to the Consolidated Financial Statements for Holding Companies (FR Y-9C) for CECL, as appropriate. The proposed reporting changes related to CECL were also consistent with the revisions indicated in the interagency final rule that incorporated the CECL transition.
Keywords: Americas, US, Banking, Stress Testing, FR Y-14, CECL, Dodd Frank Act, DFAST, Reporting, CCAR, FR Y-9C, Financial Instruments, IFRS 9, FED
Previous ArticleHKMA Publishes List of Systemically Important Banks in Hong Kong
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.