FED issued a proposal to extend for three years, with revision, the Capital Assessments and Stress Testing Reports (FR Y-14A/Q/M; OMB No. 7100-0341). Comments must be submitted on or before September 30, 2019. The collections of information are applicable to the top-tier bank holding companies with total consolidated assets of USD 100 billion or more as well as the U.S. intermediate holding companies that have consolidated assets of USD 50 billion or more and that are subsidiaries of foreign banking organizations. Additionally, FED has published draft forms and instructions, along with the draft OMB supporting statement, for FR Y-14A/Q/M.
FED proposes to implement a number of changes to schedules of FR Y-14A, FR Y-14Q, and FR Y-14M reports. The proposed revisions consist of deleting or adding items, adding or expanding schedules or sub-schedules, and modifying or clarifying the instructions for existing data items, primarily on FR Y-14Q and FR Y-14M reports. FED is proposing most of the changes to reduce reporting burden for firms, clarify reporting instructions and requirements, address inconsistencies between the FR Y-14 reports and other regulatory reports, and to account for revised rules and accounting principles. A limited number of proposed revisions would modify the reporting requirements and add or expand sub-schedules to improve the availability and quality of data to enhance supervisory modeling and for use in the Dodd-Frank Act Stress Test (DFAST). FED proposes to implement the revisions with the FR Y-14 reports as of September 30, 2019.
Mos of the FED-proposed changes are intended to bring the reports in alignment with the current accounting standards, rules, and other regulatory reports. This includes modifications to the existing items and the addition of items in conformance with:
- FASB Accounting Standards Update (ASU) 2016-01 on recognition and measurement of financial assets and financial liabilities
- ASU 2017-12 on targeted improvements to accounting for hedging activities
- Revisions made to the Consolidated Financial Statements for Holding Companies (FR Y-9C)
- Changes to the regulatory capital rules
- The Tax Cuts and Jobs Act
- The new U.S. London Interbank Offered Rate (LIBOR) alternative
Many of the proposed revisions are intended to reduce inconsistent reporting due to ambiguous, contradictory, or unclear instructions. The proposal would also incorporate editorial or technical edits. FED is proposing revisions to more accurately capture the data needed for running the stress tests and in support of the DFAST and Comprehensive Capital Analysis and Review (CCAR) exercises. This includes the proposed elimination of certain items from the FR Y-14M that are no longer needed because they are available from alternative data sources or are not necessary for stress tests, DFAST, or CCAR.
Similarly, the proposal would incorporate and formalize on the FR Y-14 several collections FED collects from a limited number of firms directly in support of running the supervisory stress test. Given the ongoing use of these data in the supervisory stress test, FED is proposing to collect them on FR Y-14 reports on new or existing schedules to reduce operational challenges with data submission and processing and to improve data quality. Finally, FED is proposing modifications to how burden estimates are displayed and seeks further comment on burden estimates. The estimated total annual burden for the FR Y-14 is 858,384 hours. The proposed revisions would result in a net decrease in burden of 17,336 hours, for a total of 841,048 hours.
- Federal Register Notice
- Draft Reporting Forms (ZIP)
- Draft Reporting Instructions (ZIP)
- Supporting Statement (PDF)
Comment Due Date: September 30, 2019
Keywords: Americas, US, Banking, Stress Testing, FR Y-14, Dodd-Frank Act, DFAST, CCAR, Reporting, Supporting Statement, FED
Previous ArticleECB Publishes Version 1.5 of AnaCredit Validation Checks
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.