US Agencies are incorporating changes related to the standardized approach for counterparty credit risk (SA-CCR) into the Call Reports FFIEC 031, FFIEC 041, and FFIEC 051. These US Agencies are the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FED), and the Federal Deposit Insurance Corporation (FDIC). The agencies had proposed these changes to the Call Reports on July 22, 2021 and sought comments to add a new item related to the final rule on SA-CCR. The comment period on the proposal ended in September 2021 and the agencies have decided to add the new item related to SA-CCR, as proposed.
Thus, the agencies expect to revise Schedule RC-R, Part I, Regulatory Capital Components and Ratios, on all versions of the Call Report by adding a new line item 31.b, “Standardized Approach for Counterparty Credit Risk opt-in election.” The agencies proposed to add this new item to identify institutions that have chosen to early adopt or voluntarily elect SA-CCR. This information allows for enhanced comparability of the reported derivative data and for better supervision of the implementation of the framework at these institutions. Due to the inherent complexity of adopting SA-CCR, identification of non-advanced approaches institutions that choose to voluntarily adopt SA-CCR is particularly important for their supervision. The reporting change for the new item related to SA-CCR would take effect starting with the December 31, 2021 Call Report. In the July 2021 proposal, the agencies had also requested comment on proposed changes to the instructions for reporting of deferred tax assets. The agencies are deferring these proposed changes until a future notice, which will also provide an opportunity for additional comment on the instructions. The agencies hereby give notice of their plan to submit to the Office of Management and Budget (OMB) a request to approve the revision and extension of these information collections and again invite comment on the renewal. The feedback on this notice must be submitted by December 06, 2021.
Comment Due Date: December 06, 2021
Keywords: Americas, US, Banking, Call Reports, FFIEC 031, FFIEC 041, FFIEC 051, SA-CCR, Credit Risk, Reporting, US Agencies
Previous ArticlePBC Launches Carbon Emission Reduction Facility for Financial Firms
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.