US Agencies (FDIC, FED, and OCC) are proposing to extend for three years, without revision, the market risk regulatory report for institutions subject to the market risk capital rule (FFIEC 102). FFIEC 102 is currently an approved collection of information for each agency. FFIEC has approved the US Agencies' proposal. Comments must be submitted on or before August 26, 2019.
FFIEC 102 is filed quarterly with the US Agencies and provides information for market risk institutions, defined for this purpose as the institutions that are subject to the market risk capital rule as incorporated into Subpart F of the US Agencies' regulatory capital rules. Each market risk institution is required to file the FFIEC 102 for the agencies' use in assessing the reasonableness and accuracy of the institution's calculation of its minimum capital requirements under the market risk capital rule and in evaluating the institution's capital in relation to its risks. Additionally, the market risk information collected in the FFIEC 102:
- Permits the US Agencies to monitor the market risk profile of, and evaluate the impact and competitive implications of, the market risk capital rule on individual market risk institutions and the industry
- Provides the most current statistical data available to identify areas of market risk, on which to focus for onsite and offsite examinations
- Allows the US Agencies to assess and monitor the levels and components of each reporting institution's risk-based capital requirements for market risk and the adequacy of the institution's capital under the market risk capital rule
- Assists market risk institutions in validating their implementation of the market risk framework
US Agencies invite comment on the following topics related to these collections of information:
- Whether the information collections are necessary for the proper performance of the US Agencies' functions, including whether the information has practical utility
- The accuracy of the US Agencies' estimates of the burden of the information collections, including the validity of the methodology and assumptions used
- Ways to enhance the quality, utility, and clarity of the information to be collected
- Ways to minimize the burden of information collections on respondents, including through the use of automated collection techniques or other forms of information technology
- Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information
At the end of the comment period for this notice, FFIEC and the US Agencies will review the comments received to determine whether to modify the proposal in response to comments. US Agencies will then publish a second Federal Register notice for a 30-day comment period and submit the final FFIEC 102 to OMB for review and approval.
Related Link: Federal Register Notice
Comment Due Date: August 26, 2019
Keywords: Americas, US, Banking, Market Risk, Market Risk Capital Rule, FFIEC 102, Reporting, Regulatory Capital, FFIEC, US Agencies
Previous ArticleBaFin Consultation on Management of Sustainability Risks
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.