OCC published the final rule revising its stress testing regulation, following a consultation. The effective date for the final rule is March 26, 2018.
OCC had proposed several revisions to its stress testing regulation in October 2017 and it received three comments on the proposed rule from individuals. Of these, the two comments did not address the contents of the proposed rule or stress testing while one comment was brief and did not make any specific recommendations (although this comment mentioned stress testing). Therefore, OCC is adopting the proposed rule as final. The final rule makes changes to:
- The range of possible “as-of” dates used in the global market shock component to conform to changes already made by the FED to its stress testing regulations
- Clarify the requirements of the stress testing regulation of OCC
- The transition process for covered institutions with USD 50 billion or more in assets
Under the final rule, a covered institution that becomes an over USD 50 billion covered institution (as that term is defined in the OCC stress testing regulation) before September 30 will become subject to the requirements applicable to an over USD 50 billion covered institution beginning on January 01 of the second calendar year after the covered institution becomes an over USD 50 billion covered institution. Additionally, a covered institution that becomes an over USD 50 billion covered institution after September 30 will become subject to the requirements applicable to an over USD 50 billion covered institution beginning on January 01 of the third calendar year after the covered institution becomes an over USD 50 billion covered institution.
Related Link: Federal Register Notice
Effective Date: March 26, 2018
Keywords: Americas, US, Banking, Stress Testing, Dodd Frank Act, Covered Institutions, OCC
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
EBA published guidelines on loan origination and monitoring, which bring together prudential standards and consumer protection obligations, along with the anti-money laundering and the Environmental, Social, and Governance (ESG) considerations.
EBA published a consultation paper on the draft amended regulatory technical standards on own funds and eligible liabilities.
EBA published a report on convergence of supervisory practices in 2019.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.