FED issued a proposal to revise and extend for three years the Capital Assessments and Stress Testing Reports (FR Y-14A/Q/M; OMB No. 7100-0341). Comments must be submitted on or before 60 days after publication in the Federal Register. FED has also temporarily revised the FR Y-14A report pursuant to its authority to temporarily approve a collection of information without providing opportunity for public comment. The temporary revisions are applicable only to reports reflecting the December 31, 2019 as-of date. Additionally, FED has published the draft forms and instructions, along with the draft OMB supporting statement, for FR Y-14A/Q/M.
FR Y-14A/Q/M reports are used to support Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act Stress Test (DFAST) exercises and supervisory stress test models. These reports are also used in connection with the supervision and regulation of these financial institutions. FED has proposed revisions necessary to better identify risk as part of the CCAR and DFAST exercises; these revisions include revisions to the Trading and Counterparty schedules or sub-schedules as well as capital revisions related to capital simplification, total loss absorbing capacity (TLAC), and standardized approach for counterparty credit risk on derivative contracts (SA-CCR). FED also proposed to make several clarifications to the instructions that were, in part, prompted by the questions FED has received from reporting institutions. All proposed revisions would be effective for the FR Y-14Q and FR Y-14M forms for the September 30, 2020 report date and for the FR Y-14A form for the December 31, 2020 report date.
Meanwhile, FED temporarily revised the FR Y-14A report to allow eligible firms to incorporate the effects of the simplification and tailoring rules effective with the December 31, 2019 as-of date. The collections of information are applicable to top-tier U.S. bank holding companies and U.S. intermediate holding companies of foreign banking organizations with USD 100 billion or more in total consolidated assets. Covered savings and loan holding companies with USD 100 billion or more in total consolidated assets will also become respondents to the FR Y-14Q and FR Y-14M effective June 30, 2020 and will become respondents to the FR Y-14A effective December 31, 2021.
Comment Due Date: FR+60 Days
Keywords: Americas, US, Banking, Stress Testing, FR Y-14, Dodd Frank Act, DFAST, CCAR, Reporting, Supporting Statement, TLAC, SA-CCR, Credit Risk, FED
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