FED published a report that summarizes banking conditions and the supervisory and regulatory activities of FED, in conjunction with semiannual testimony before Congress by the Vice Chairman for Supervision. The report also focuses on how FED tailors its supervisory and regulatory programs based on size and complexity.
In addition to the summary of key developments and trends, this report consists of three main sections:
- The Banking System Conditions section, which provides an overview of trends in the banking sector based on data collected by the FED and other federal financial regulatory agencies as well as market indicators of industry conditions
- The Regulatory Developments section, which provides an overview of the focus areas of the regulatory policy work by FED, including pending rules
- The Supervisory Developments section, which provides background information on supervisory programs and approaches as well as an overview of key supervisory themes and trends, supervisory findings, and supervisory priorities
The report highlights that FED is focused on opportunities to simplify the current regulatory framework and minimize compliance burden in achieving the goal of a safe, sound, and efficient financial system. The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCP Act) presents an opportunity for FED to continue to tailor its regulations to focus on the largest banking firms that represent the highest risk to the U.S. financial system while reducing burden for firms that pose less systemic risk. Many of the FED regulations over the past year dealt with further tailoring of existing regulations and implementing provisions of EGRRCP Act. The report contains a table showing proposed and final rules as well as select FED and interagency statements, issued over the past 12 months. While summarizing the supervisory developments, the report focuses on tailoring of the FED programs based on size and complexity of an organization and distinguishes between large financial institutions and regional and community banking organizations, as supervisory approaches and priorities for these institutions frequently differ.
Keywords: Americas, US, Banking, Banking Supervision, Proportionality, EGRRCP Act, Reporting, Basel III, FED
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting