OCC released economic and financial market scenarios for use in the upcoming stress tests for covered institutions. The supervisory scenarios include baseline, adverse, and severely adverse scenarios, as described in the OCC’s final rule that implements stress test requirements of the Dodd-Frank Act. Covered institutions are required to complete reporting templates using financial information as of December 31 each year. OCC has also finalized the templates and instructions for the 2019 stress tests.
Covered institutions must publish a summary of the results of its annual stress test in the period starting June 15 and ending July 15 (for the stress test cycle beginning January 01, 2016 and for all stress tests thereafter). Unless OCC determines otherwise, if the covered institution is a consolidated subsidiary of a bank holding company or savings and loan holding company subject to supervisory stress tests conducted by FED pursuant to 12 CFR part 252, then within the June 15 to July 15 period such covered institution may not publish the required summary of its annual stress test earlier than the date that the FED publishes the supervisory stress test results of the covered bank's parent holding company.
Section 165(i)(2) of the Dodd-Frank Act requires certain financial companies, including certain national banks and federal savings associations, to conduct annual stress tests. The OCC stress test rule states that the OCC will provide scenarios to covered institutions by February 15 of each year. Covered institutions are required to use the scenarios to conduct annual stress tests. The results of the company-run stress tests provide the OCC with forward-looking information used in bank supervision and will assist the agency in assessing the company’s risk profile and capital adequacy.
Keywords: Americas, US, Banking, Stress Testing Scenarios, Stress Testing, DFAST 14A, Reporting, Dodd Frank Act, OCC
Previous ArticleNCUA Makes Minor Changes to Rules Including Rule on Capital Adequacy
HKMA has published a circular that sets out the regulatory and reporting treatment for loans that participating authorized institutions may grant to eligible borrowers under the 100% Personal Loan Guarantee Scheme.
ECB published the results of the assessment of internal models that banks use to calculate risk-weighted assets for credit, market, and counterparty credit risks.
PRA published a statement on the regulatory treatment of retail residential mortgage loans under the Mortgage Guarantee Scheme, or MGS.
FCA is consulting, via CP21/7, on the second phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR).
HM Treasury and BoE announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential central bank digital currency in UK.
EIOPA published an opinion to set out its expectations on the supervision of the integration of climate change risk scenarios by insurers in their Own Risk and Solvency Assessment (ORSA).
Bundesbank published two circulars on AnaCredit reporting requirements. Circular 27/2021 covers changes to the reporting of branches, additional attributes to be reported for investment funds from August 01, 2021, and updates to the list of international organizations.
EC published the Implementing Regulation 2021/622 that lays down implementing technical standards for reporting of the minimum requirement for own funds and eligible liabilities (MREL).
BCBS has set out the strategic work priorities, as part of its the work program for 2021-22.
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.