Featured Product

    FDIC Updates Call Reports Implementing CECL Related Changes

    March 08, 2019

    FDIC announced, via its Financial Institution Letter (FIL), that the US banking agencies, under the auspices of FFIEC, have finalized revisions to certain reports, including FFIEC 031, FFIEC 041, FFIEC 051, and FFIEC 101 reports, that primarily address changes in the accounting for credit losses under the Accounting Standards Update (ASU) 2016-13 of FASB. Other revisions to these reports result from the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCP Act) and relate to the reporting of high-volatility commercial real estate (HVCRE) exposures and reciprocal deposits. The revisions were issued for comment in September 2018 and are subject to approval by the U.S. Office of Management and Budget.

    This FDIC Financial Institution Letter applies to all FDIC-supervised banks and savings associations, including community institutions. The changes related to credit loss reporting affect all three versions of the Call Reports (FFIEC 031, FFIEC 041, and FFIEC 051) as well as the following FFIEC reports that are applicable to a limited number of institutions:

    • Foreign Branch Report of Condition (FFIEC 030)
    • Abbreviated Foreign Branch Report of Condition (FFIEC 030S)
    • Regulatory Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework (FFIEC 101)

    The changes to the Call Reports and the FFIEC 101 report implement the agencies' recent revisions to the regulatory capital rules for the current expected credit losses (CECL) methodology in ASU 2016-13, including a CECL regulatory capital transition. Since ASU 2016-13 has different effective dates for different institutions, the reporting changes related to credit losses will be phased in between March 31, 2019 and December 31, 2022. The reporting changes involving the reporting of HVCRE exposures and reciprocal deposits arise from two sections of EGRRCP Act that were effective on its enactment on May 24, 2018. Consequently, these changes affected reporting in the Call Reports and the FFIEC 101 report beginning as of the June 30, 2018 report date.

    Additionally, the US Agencies (OCC, FED, and FDIC) are currently considering the comments received on a separate proposal to implement Section 205 of EGRRCPA on reduced reporting for covered institutions in the Call Report (dated November 19, 2018). Although the proposal included revisions to the FFIEC 051 reporting requirements that were proposed to take effect on March 31, 2019, these reporting changes, if finalized, would take effect no earlier than June 30, 2019.

     

    Related Links

    Keywords: Americas, US, Banking, IFRS 9, CECL, Reporting, HVCRE, Commercial Real Estate, FFIEC 031, FFIEC 041, FFIEC 051, FFIEC 101, EGRRCP Act, FDIC

     

    Featured Experts
    Related Articles
    News

    FASB Proposes Taxonomy Changes Related to Topics 848 and 470

    FASB proposed taxonomy improvements for the proposed Accounting Standards Update on topic 848 on facilitation of effects of reference rate reform on financial reporting.

    September 16, 2019 WebPage Regulatory News
    News

    BoE Statement on Recalculating Transitional Measures Under Solvency II

    BoE notified that it will be willing to accept applications from firms to recalculate transitional measure on technical provisions (TMTP) as at September 30, 2019.

    September 16, 2019 WebPage Regulatory News
    News

    PRA Publishes Waiver by Consent of Continuity of Access Rules

    PRA published a new waiver by consent to waive the Continuity of Access requirements contained in the Depositor Protection Part of the PRA Rulebook (DPP).

    September 13, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for September 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to three questions.

    September 13, 2019 WebPage Regulatory News
    News

    BoE Paper on Market-Implied Systemic Risk and Shadow Capital Adequacy

    BoE published a working paper that presents a forward-looking approach to measure systemic solvency risk.

    September 13, 2019 WebPage Regulatory News
    News

    HKMA Consults on Policy Module on Pillar 2 Supervisory Review Process

    HKMA is consulting on the revised Supervisory Policy Manual module CA-G-5 that sets out the HKMA approach to conducting the supervisory review process under Pillar 2.

    September 13, 2019 WebPage Regulatory News
    News

    PRA Revises Branch Return and Updates Guidance for Regulatory Reports

    PRA published the policy statement PS17/19, which contains the final policy related to changes in the format and content of the Branch Return Form and reporting guidance.

    September 12, 2019 WebPage Regulatory News
    News

    ESA Report Highlights Risks of No-Deal Brexit in EU Financial System

    ESAs published a Joint Committee report on risks and vulnerabilities in the EU financial system.

    September 12, 2019 WebPage Regulatory News
    News

    ECB Modifies New Targeted Longer-Term Refinancing Operations

    The Governing Council of ECB decided to modify some of the key parameters of the third series of targeted longer-term refinancing operations (TLTRO III) to preserve favorable bank lending conditions (Decision (EU) 2019/1558).

    September 12, 2019 WebPage Regulatory News
    News

    ECB Publishes Version 1.5 of AnaCredit Validation Checks

    ECB published Version 1.5 of the AnaCredit validation checks.

    September 12, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3819