FDIC is adopting the Supervisory Guidance on Model Risk Management, with technical conforming changes, thereby making the guidance applicable to certain FDIC-supervised institutions. The guidance was previously issued by the FED (SR 11-7) and the OCC (OCC Bulletin 2011-12). FDIC is adopting this guidance to facilitate consistent model risk-management expectations across the banking agencies and industry. The guidance addresses supervisory expectations for model risk management, which includes model development, implementation, and use; model validation; and governance, policies, and controls.
FDIC is adopting the guidance with the technical conforming changes, including revised definition of "banks" to reflect the FDIC's supervisory authority and its expectations that the Supervisory Guidance generally pertains to FDIC-supervised institutions with USD 1 billion or more in total assets and including revised references to the existing guidance to reflect the FDIC guidance. It is not expected that this guidance will pertain to the FDIC-supervised institutions with under USD 1 billion in total assets, unless the institution's model use is significant, complex, or poses elevated risks to the institution. Some FDIC-supervised institutions have increased their reliance on models for various functions, such as credit management, operational risk, valuation, and stress testing.
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APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.