OCC announced its decision to extend, to November 25, 2019, the deadline for compliance with the Dodd-Frank Act Stress Test (DFAST) requirements applicable to national banks and federal savings associations with total consolidated assets from USD 100 billion to less than USD 250 billion. Since these banks will not be subject to the DFAST requirements as of November 25, 2019, OCC believes that there would be limited supervisory benefit in requiring DFAST submissions for these banks in 2019.
This action is consistent with the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act’s purpose of avoiding unnecessary regulatory burden for national banks and federal savings associations with total consolidated assets less than USD 250 billion. Prior DFAST exams and OCC supervision have shown that national banks and federal savings associations of this size have adopted effective stress testing programs and integrated them into their general risk management tools. Therefore, requiring DFAST submissions for these banks in 2019 would provide limited supervisory value. OCC communicated this decision by directly sending a letter to the affected banks in December 2018.
Keywords: Americas, US, Banking, DFAST, Stress Testing, EGRRCP Act, Extension of Deadline, OCC
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