FDIC issued a notice of proposed rulemaking (NPR) that would amend its deposit insurance assessment regulations to apply the community bank leverage ratio (CBLR) framework to the deposit insurance assessment system. Comments must be received on or before April 22, 2019. The proposed rule will require changes to Schedule RC-O of the Call Reports FFIEC 031, FFIEC 041, and FFIEC 051, which will be coordinated by FFIEC and addressed in a separate Federal Register notice.
FDIC, FED, and OCC (collectively, the US Agencies) recently issued an interagency proposal to implement the CBLR (the CBLR NPR). Under this proposal, FDIC would assess all banks that elect to use the CBLR framework (CBLR banks) as small banks. Through amendments to the assessment regulations and corresponding changes to the Consolidated Reports of Condition and Income (Call Report), CBLR banks would have the option of using either the:
- CBLR tangible equity or tier 1 capital for their assessment base calculation
- CBLR or the tier 1 leverage ratio for the leverage ratio that the FDIC uses to calculate an established small bank's assessment rate
Through this proposal, FDIC would also clarify that a CBLR bank that meets the definition of a custodial bank would have no change to its custodial bank deduction or reporting items required to calculate the deduction. Moreover, the assessment regulations would continue to reference the prompt corrective action (PCA) regulations for the definitions of capital categories used in the deposit insurance assessment system, with technical amendments to align with the CBLR NPR. To assist banks in understanding the effects of the NPR, FDIC plans to provide, on its website, an assessment estimation tool that estimates deposit insurance assessment amounts under the proposal.
Related Link: Federal Register Notice
Comment Due Date: April 22, 2019
Keywords: Americas, US, Banking, Community Banks, Leverage Ratio, CBLR Framework, Prompt Corrective Action, EGRRCP Act, Reporting, FFIEC 031, FFIEC 041, FFIEC 051, FDIC
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA published the annual report on asset encumbrance of banks in EU.
MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
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.