US Agencies (FDIC, FED, and OCC) proposed to revise and extend, for three years, the FFIEC 101 report and the call reports (FFIEC 031, FFIEC 041, and FFEIC 051). On October 04, 2019, the agencies had proposed revisions to the Call Reports and the FFIEC 101 that would implement various changes to the agencies' regulatory capital rule that, as of that date, the agencies had finalized or were considering finalizing. After considering the comments received on the proposal, the agencies are proceeding with the proposed revisions to the reporting forms and instructions for the Call Reports and the FFIEC 101 (except for the reporting changes arising from the proposed total loss-absorbing capacity, or TLAC, holdings rule, which has not yet been finalized), but with certain modifications. In addition, the agencies are giving notice that they are sending the collections to OMB for review. Comments must be submitted by February 26, 2020.
The October 2019 notice had included proposed revisions to these reporting forms and instructions, for implementing various changes to the regulatory capital rule of the US Agencies; the changes to the regulatory capital rule involve the capital simplifications rule, the community bank leverage ratio (CBLR) rule, the proposed tailoring rule, the proposed TLAC holdings rule, the proposed rule for supplementary leverage ratio revisions for certain central bank deposits of custodial banks, the proposed rule for the standardized approach for counterparty credit risk (SA-CCR) on derivative contracts, and the high volatility commercial real estate (HVCRE) land development proposal. The comment period for the October 2019 notice ended on December 03, 2019. The agencies received comments on the proposed reporting changes covered in the notice from four entities: three bankers' associations and one savings association.
Except for the proposed TLAC holdings rule, the final rules have now been adopted for all of the regulatory capital rulemakings addressed in the October 2019 notice. The key modifications relate to the disclosure of an institution's election of the community bank leverage ratio framework, a change in the scope of the FFIEC 031 Call Report, and the reporting of home equity lines of credit that convert from revolving to non-revolving status. The reporting revisions that implement various changes to the agencies' capital rule would take effect in the same quarters as the effective dates of the capital rule changes, that is, primarily as of the March 31 and June 30, 2020 report dates. The Call Report revisions applicable to operating lease liabilities and home equity lines of credit would take effect in the first quarters of 2020 and 2021, respectively.
Since the proposed TLAC holdings rule has not been finalized, the agencies are not proceeding with the implementation of the TLAC-related reporting changes proposed in the October 2019 notice. Once the proposed TLAC holdings rule is finalized, the agencies plan to issue a thirty-day Federal Register notice to implement the associated reporting changes, which would address any comments received on the proposed changes.
Comment Due Date: February 26, 2020
Keywords: Americas, US, Banking, Reporting, FFIEC 031, FFIEC 041, FFIEC 051, Call Reports, FFIEC 101, CBLR Framework, TLAC, Regulatory Capital, Basel III, US Agencies
Previous ArticleFSI Paper Examines Cross-Border Cooperation in Resolution Planning
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.