OCC is proposing revisions to the regulatory reporting requirements for stress testing of national banks and federal savings associations. The related information collection from OCC is the company-run annual stress test reporting template and documentation for covered Institutions with consolidated assets of USD 250 billion or more under the Dodd-Frank Act. OCC recognizes that FED had proposed and implemented modifications to the form on capital assessments and stress testing (FR Y-14A); to the extent practical, OCC will keep its reporting requirements consistent with those in FR Y-14A, to minimize burden on covered institutions. Therefore, OCC is proposing to revise its reporting requirements to mirror the FR Y-14A report of FED for covered institutions with total consolidated assets of USD 250 billion or more. The comment period on this proposal ends on March 29, 2021.
The proposed changes include updates to various schedules to reflect the adoption of the tailoring framework used to determine the applicability of regulatory capital requirements to large U.S. banking organizations. Other changes include removing the worksheet for reporting advanced approaches risk-weighted assets and the worksheet for reporting pre-provision net revenue (PPNR) metrics, as well as technical changes to various individual data items. The proposed changes to the reporting templates of OCC do not include data items in the FR Y-14A associated with several capital buffers related ratios, such as the stress capital buffer requirement of FED adopted in 2020. The proposal would remove the OCC Supplemental Schedule, which collects information not collected by the FR Y-14A. Comments submitted in response to the proposal will be summarized and included in the request for OMB approval.
Comment Due Date: March 29, 2021
Keywords: Americas, US, Banking, Stress Testing, Dodd-Frank Act, FR Y-14, Reporting, CCAR, DFAST 14A, Basel, FED, OCC
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.