FED has adopted two proposals to extend for three years, with revision, the capital assessment and stress testing reports (FR Y-14A/Q/M; OMB No. 7100-0341). FED published two Federal Register notices (on July 08, 2020 and September 17, 2020) that temporarily revised the FR Y-14 reports. The approved revisions include adopting most of the temporary revisions announced in the July 2020 notice. The temporary revisions will automatically expire following the March 31, 2021 as-of date. In addition, FED has adopted revisions related to the current expected credit losses (CECL) and capital data, as proposed in the July 08, 2020 notice, as well as revisions related to the FR Y-14 submission requirements in connection with a firm's resubmission of its capital plan, as in the September 17, 2020, notice. All revisions become effective beginning with the December 31, 2020 as-of date. In this context FED also updated forms, instructions, and question and answer (Q&A) document for FR Y-14A/Q/M.
The temporary revisions, announced in the July 08, 2020 notice, captured data pertaining to certain aspects of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, information on firm activity associated with various Federal Reserve lending facilities, and information regarding emerging risks arising from COVID-19 pandemic. In addition to a proposal to extend these temporary revisions, FED proposed revisions to the FR Y-14 reports intended to address questions related to the reporting of certain CECL and capital data. Two respondents recommended that FED should only reauthorize specific temporary revisions to the extent those revisions are critical and should consider the resource constraints facing firms during the COVID-19 crisis when deciding whether to reauthorize any temporary revisions. Additional two respondents recommended that FED should provide reporting firms and the public with as much notice as possible, preferably at least three months, before requiring firms to continue to report any reauthorized revisions, to ease the reporting burden. To reduce reporting burden, temporary revisions associated with the FED lending facilities, which are set to expire at the end of December 2020, including the Main Street Lending Program, will only remain in place through the December 31, 2020 as-of date. All other temporary revisions will remain in place through the reports as of March 31, 2021.
FED temporarily revised the FR Y-14Q instructions to indicate that in times of crisis, FED may temporarily request submissions of schedules more frequently than firms are generally required to submit the schedules. FED would provide firms with as much notice as possible, given the circumstances. The temporary revisions, which were announced in the September 17, 2020 notice, implemented changes necessary to collect information used to conduct additional analysis in connection with the resubmission of firms' capital plans, including consideration of the global market shock component, using data as of June 30, 2020. In addition to these temporary revisions, the notice proposed revisions to the FR Y-14 reports that would have allowed FED to require the submission of additional FR Y-14A and FR Y-14Q data in connection with a firm's resubmission of its capital plan. FED did not receive any comments on this notice.
- Federal Register Notice
- FR Y-14A: Reporting Forms and Instructions
- FR Y-14Q: Reporting Forms and Instructions
- FR Y-14M: Reporting Forms and Instructions
- Q&A on Form FR Y-14
- Reporting Form Updates
Keywords: Americas, US, Banking, COVID-19, Reporting, FR Y-14, Regulatory Capital, Stress Testing, Q&A, CARES Act, Credit Risk, CECL, Lending Facility, FED
Previous ArticleAPRA Updates Validation and Derivation Rules in January 2021
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)