Featured Product

    FED Extends Form FR 4199 on Basel II Pillar 2 Guidance

    February 04, 2019

    FED is adopting a proposal to extend for three years, without revision, the Basel II Interagency Pillar 2 Supervisory Guidance, also known as the Pillar 2 Guidance (FR 4199; OMB No. 7100-0320). The report is related to the advanced approaches framework, which requires certain banks and bank holding companies to use an internal ratings-based approach to calculate regulatory credit risk capital requirements and advance measurement approaches to calculate regulatory operational risk capital requirements.

    FED had published, on October 22, 2018, a proposal requesting public comment for 60 days on the extension, without revision, of FR 4199. The comment period for the proposal expired on December 21, 2018. FED did not receive any comments. A bank is required to comply with the advanced approaches framework if it meets either of two independent threshold criteria: consolidated total assets of USD 250 billion or more as reported on the most recent year-end regulatory reports, or consolidated total on-balance sheet foreign exposure of USD 10 billion or more at the most recent year-end.

    A bank holding company is required to comply with the advanced approaches framework if the bank holding company has either of the following:

    • Consolidated total assets (excluding assets held by an insurance underwriting subsidiary) of USD 250 billion or more, as reported on the most recent year-end regulatory reports
    • Consolidated total on-balance-sheet foreign exposure of USD 10 billion or more at the most recent year-end
    • A subsidiary depository institution that meets the criteria to be subject to the advanced approaches rule or elects to adopt the advanced approaches framework

    As of the end of 2017, 13 bank holding companies meet the above criteria and are, therefore, subject to the advanced approaches rule. Also, some banks or bank holding companies may voluntarily decide to adopt the advanced approaches framework. Both mandatory and voluntary respondents are required to meet certain qualification requirements before they can use the advanced approaches framework for risk-based capital purposes.

     

    Related Link: Federal Register Notice

    Keywords: Americas, US, Banking, FR 4199, Pillar 2, Basel II, Advanced Approach, IRB Approach, Capital Requirements, FED

    Featured Experts
    Related Articles
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    News

    PRA Publishes Final Policy on Maintenance of TMTP Under Solvency II

    PRA published the policy statement (PS25/19) that contains the final supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTPs) under Solvency II.

    November 14, 2019 WebPage Regulatory News
    News

    FSB Examines Implementation of Resolution Regimes in Financial Sector

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions and sets out plans for further work.

    November 14, 2019 WebPage Regulatory News
    News

    IAIS Adopts ComFrame, ICS, and Holistic Framework for Systemic Risk

    IAIS adopted a comprehensive set of reforms—Common Framework (ComFrame), Insurance Capital Standard (ICS) Version 2.0, and Holistic Framework for Systemic Risk—that will enable effective cross-border supervision of insurance groups and contribute to global financial stability.

    November 14, 2019 WebPage Regulatory News
    News

    PRA Publishes Templates for Statistical Disclosures Under Solvency II

    PRA published templates for statistical disclosures, as required under Article 31(2) of the Solvency II Directive.

    November 14, 2019 WebPage Regulatory News
    News

    EC Rule on Calculation of Technical Provisions Under Solvency II

    EC published the Implementing Regulation (EU) 2019/1902 that lays down technical information for calculation of technical provisions and basic own funds for reporting with reference dates from September 30, 2019 until December 30, 2019, in accordance with the Solvency II Directive.

    November 14, 2019 WebPage Regulatory News
    News

    Regulatory Authorities Remark on IAIS Reforms for Insurance Sector

    FSB welcomed the finalization of the IAIS holistic framework for systemic risk in the insurance sector, for implementation in 2020. EIOPA welcomed the adoption of ComFrame, Insurance Capital Standard (ICS) Version 2.0, and the holistic framework for the assessment and mitigation of systemic risk in the insurance sector.

    November 14, 2019 WebPage Regulatory News
    News

    BIS and MAS Launch Innovation Hub in Singapore

    BIS and MAS launched the BIS Innovation Hub Center in Singapore.

    November 13, 2019 WebPage Regulatory News
    News

    FASB Approves Guidance to Assist in Transition to New Reference Rates

    FASB approved an Accounting Standards Update (Topic 848) to provide temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the reference rate reform on financial reporting.

    November 13, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4150