Featured Product

    FED Finalizes the Large Financial Institution Rating System

    November 21, 2018

    FED finalized the new supervisory rating system for Large Financial Institutions (LFIs), to better align with the current supervisory programs and practices for these firms. Additionally, FED published a notice stating that it will apply the RFI/C(D) rating system to certain savings and loan holding companies (SLHCs). SLHCs with USD 100 billion or more in assets will receive ratings under the RFI/C(D) rating system until FED applies the LFI rating system to them. Under the RFI rating system, BHCs are assigned individual component ratings for risk management (R), financial condition (F), and impact (I) of nondepository entities on subsidiary depository institutions. The final rule on LFI rating system and the application of the RFI/C(D) rating system to SLHCs will become effective from February 01, 2019.

    The LFI rating system applies to bank holding companies and non-insurance, non-commercial savings, and loan holding companies with total consolidated assets of USD 100 billion or more, which is a change from the originally proposed USD 50 billion threshold. It will also apply to the U.S. intermediate holding companies of foreign banking organizations established under Regulation YY with total consolidated assets of USD 50 billion or more, as proposed. The rating system introduces a new rating scale and will assign component ratings for capital planning and positions, liquidity risk management and positions, and governance and controls. FED will assign initial ratings under the new system in 2019 for bank holding companies and U.S. intermediate holding companies subject to the Large Institution Supervision Coordinating Committee framework and in 2020 for all other large financial institutions. FED is also revising provisions in Regulation K and Regulation LL to ensure consistency with certain features of the new rating system.

    FED will continue to apply the existing rating system for bank holding companies with less than USD 100 billion in total consolidated assets. The existing rating system will also be adopted for non-insurance, non-commercial savings, and loan holding companies with less than USD 100 billion in total consolidated assets.

     

    Related Links

    Effective Date: February 01, 2019

    Keywords: Americas, US, Banking, Rating System, LFI Rating System, RFI Rating System, FED

    Related Articles
    News

    FASB Proposes Improvements to Derivatives and Hedging Standard

    FASB proposed an Accounting Standards Update, on codification improvements to hedge accounting under Topic 815, to clarify certain sections of the 2017 hedge accounting standard (Update 2017-12).

    November 13, 2019 WebPage Regulatory News
    News

    FASB Approves Guidance to Assist in Transition to New Reference Rates

    FASB approved an Accounting Standards Update (Topic 848) to provide temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the reference rate reform on financial reporting.

    November 13, 2019 WebPage Regulatory News
    News

    BIS and MAS Launch Innovation Hub in Singapore

    BIS and MAS launched the BIS Innovation Hub Center in Singapore.

    November 13, 2019 WebPage Regulatory News
    News

    MAS Collaborates on Research Platform to Support Fintech Investments

    MAS, Deloitte, and S&P Global Market Intelligence have collaborated to develop a prototype for an industry-wide Fintech Research Platform to help investors and financial institutions connect with fintech start-ups that they can partner with or invest in.

    November 12, 2019 WebPage Regulatory News
    News

    MAS and CSA Sign Agreement to Strengthen Collaboration in Fintech

    MAS and eight members of the Canadian Securities Administrators (CSA) signed a cooperation agreement to strengthen collaboration in fintech between Singapore and CSA’s member jurisdictions.

    November 12, 2019 WebPage Regulatory News
    News

    APRA Consults to Standardize Submission Date for Quarterly Reporting

    APRA proposed to standardize quarterly reporting due dates for authorized deposit-taking institutions. The proposed standardized due date is 35 calendar days after the last day of the reference quarter, which will create a 14-calendar-day extension for credit unions and building societies.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: First Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to two questions. The answers provide clarifications on topics related to own funds and strong customer authentication under the revised Payment Services Directive or PSD2.

    November 08, 2019 WebPage Regulatory News
    News

    FED Proposes to Extend Initial Compliance Dates Under SCCL Rule

    FED published a proposal to extend, by 18 months, the initial compliance dates for foreign banks subject to the single-counterparty credit limit (SCCL) rule.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Publishes Technical Package on Reporting Framework 2.9.1

    EBA published a new release of the reporting framework 2.9.1. This release includes validation rules, Data Point Model (DPM) data dictionary, XBRL taxonomy, and other supporting documents. Additionally, the release fixes some modeling issues on COREP Liquidity and FINREP.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Report Examines Progress in Addressing Nonperforming Loans in EU

    EBA published a report that examines the progress toward addressing the nonperforming loan (NPL) issue in Europe.

    November 08, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4131