FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic. The temporary revisions are applicable to reports beginning with the July 31, 2020 or September 30, 2020 as-of date. The revised reports would collect data on certain aspects of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, on firm activity associated with various FED lending facilities, and on emerging risks arising from the COVID-19 pandemic. Additionally, FED invites comments on a proposal to extend for three years, with revision, the FR Y-14A/Q/M reports to address questions related to the reporting of certain current expected credit losses (CECL) and capital data, which would be applicable to reports beginning with the December 31, 2020 as-of date. Comments must be submitted on or before September 08, 2020. FED has published draft supporting statement and reporting forms and instructions for FR Y-14A/Q/M.
FED has temporarily revised the FR Y-14A/Q/M reports to
- Collect data pertaining to certain aspects of CARES Act
- Collect information on firm activity associated with the Paycheck Protection Program (PPP) and FED lending facilities, such as the Main Street Lending Program, that have been established to support markets and the broader economy during the COVID-19 pandemic
- Change the submission frequency of FR Y-14Q, Schedule H (Wholesale)
- Make other revisions, to better understand the evolving effects of the COVID-19 pandemic on bank positions and the broader economy
The revised submission frequency of FR Y-14Q, Schedule H (Wholesale) is effective beginning with the report as of July 31, 2020. All other FR Y-14Q and FR Y-14M temporary revisions are effective beginning with reports as of September 30, 2020. The FR Y-14Q instructions specify that attestations are not required for non-quarter-end submissions or for new items temporarily added as part of this notice. These temporary revisions expire six months after the date of publication of this notice in the Federal Register, unless extended by FED. Data associated with these temporary revisions are only required to be submitted up to and including data as of December 31, 2020—firms are not required to continue to submit data associated with these temporary revisions for any as-of dates in 2021 without explicit re-authorization from FED.
In addition, in response to various questions received from industry following the publication (in March 2020) of the interim final rule to change the CECL transition provisions, FED is proposing to revise the FR Y-14A to allow firms to accurately reflect in their reporting the greater flexibility on CECL implementation afforded in the interim final rule and to make minor revisions and clarifications to several capital items on the FR Y-14A and FR Y-14Q reports.
Comment Due Date: September 08, 2020
Keywords: Americas, US, Banking, COVID-19, Paycheck Protection Program, Reporting, CARES Act, Credit Risk, FR Y-14, CECL, Regulatory Capital, Stress Testing, FED
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