Featured Product

    FED Adjusts Supervisory Approach to Alleviate the Impact of COVID-19

    March 24, 2020

    FED issued a statement to provide additional information to financial institutions regarding adjustments to its supervisory approach in light of the COVID-19. The key topics on which additional information has been provided include increased focus on monitoring, changed focus on examinations, extended time periods for remediation of supervisory findings, and continuous communication with institutions. Additionally, FED announced that it will establish a Primary Dealer Credit Facility (PDCF) and Commercial Paper Funding Facility (CPFF) to support credit needs of households and businesses.

    In its statement on adjustments to its supervisory approach, FED provides the following key information:

    • FED will focus on monitoring and outreach to help financial institutions of all sizes understand the challenges and risks of the current environment
    • To minimize disruption and to focus on outreach and monitoring, FED will temporarily reduce its examination activities, with the greatest reduction in activities occurring at the smallest banks. FED intends to reassess its approach to examinations in the last week of April to determine whether conditions have changed.
    • Large banks should still submit their capital plans that they have developed as part of the Comprehensive Capital Analysis and Review (CCAR) by April 06, 2020. The plans will be used to monitor how firms are managing their capital in the current environment
    • To allow firms to focus on heightened risks in this current environment and assist consumers, additional time will be granted for resolving non-critical existing supervisory findings. FED is extending the time periods for remediating existing supervisory findings by 90 days, unless FED notifies the firm that a more timely remediation would aid the firm in addressing a heightened risk or help consumers.

    Additionally, CFTC announced that in response to the COVID-19 pandemic, the Division of Swap Dealer and Intermediary Oversight (DSIO) issued two additional no-action letters providing temporary, targeted relief to a large U.S. bank that helps finance America’s oil and gas sector and to those who operate commodity-focused investment funds the CFTC regulates. DSIO has granted temporary, targeted no-action relief to Commodity Pool Operators from certain reporting requirements. 

     

    Related Links

    Keywords: Americas, US, Banking, Securities, COVID-19, Supervisory Approach, CCAR, PDCF, CPFF, Deadline Extension, Swaps, Swap Dealer, Investment Funds, Reporting, CFTC, FED

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8286