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
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.