Featured Product

    OCC Proposes Revisions to Templates and Guidance on Stress Testing

    November 01, 2021

    The Office of the Comptroller of the Currency (OCC), published in the Federal Register, a proposal to revise the information collection for the company-run annual stress test reporting template and documentation for covered Institutions with consolidated assets of USD 250 billion or more, under the Dodd-Frank Act. The revised regulatory reporting requirements are applicable to national banks and federal savings associations and the comment period for the proposal ends on December 27, 2021. OCC is also consulting on the supervisory guidance on stress testing for banking organizations with consolidated assets of more than USD 10 billion. The comment period for this guidance ends on November 29, 2021.

    The proposed changes to the template for company-run annual stress test reporting (institutions with consolidated assets of USD 250 billion or more) entail only limited updates to reflect the changes made by the Federal Reserve Board (FED). The proposed OCC reporting forms will substantially resemble the forms used last year. Some of the changes are inapplicable to OCC-regulated institutions and involve new items that would not be collected by the OCC under the proposed changes. For example, the OCC's, FED's, and Federal Deposit Insurance Corporation's January 06, 2021 final rule revising risk-based capital requirements included new items on the FR Y-14A that are inapplicable at the depository institution level and will, therefore, not be collected under the  revisions proposed by OCC. Similarly, in 2021, the reporting forms from OCC did not collect other items collected on the 2021 FR Y-14A, and the proposed changes of OCC do not include these items. The changes proposed by OCC include the minimal adjustments necessary to align line items with placement on the 2021 FR Y-14A. If FED proposes additional changes to the FR Y-14A reporting forms after the publication of this notice, the OCC expects to make corresponding changes to the OCC reporting forms to minimize inconsistencies and reduce burden.

    The proposed supervisory guidance (for institutions with consolidated assets of USD 10 billion) provides an overview of how a banking organization should structure its stress testing activities to ensure that those activities fit into the banking organization's overall risk management. The purpose of the guidance is to outline broad principles for a satisfactory stress testing framework and describe how stress testing should be used. While the guidance is not intended to provide detailed instructions for conducting stress testing for any particular risk or business area, it does describe several types of stress testing activities and how they may be most appropriately used by banking organizations. The guidance also does not explicitly address the stress testing requirements imposed on certain banking organizations by section 165(i) of the Dodd-Frank Act.

     

    Related Links

    Keywords: Americas, US, Banking, Stress Testing, Guidance, Reporting, Dodd-Frank Act, DFAST, DFAST 10-50, FED

    Featured Experts
    Related Articles
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    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.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    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),

    May 11, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    News

    SEC Extends Comment Period on Climate Risk Disclosures

    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.

    May 09, 2022 WebPage Regulatory News
    News

    APRA Reduces Committed Liquidity Facility, Issues Other Updates

    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.

    May 09, 2022 WebPage Regulatory News
    News

    CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks

    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.

    May 06, 2022 WebPage Regulatory News
    News

    PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down

    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.

    May 06, 2022 WebPage Regulatory News
    News

    EBA Updates Standards for 2023 Benchmarking of Internal Approaches

    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.

    May 06, 2022 WebPage Regulatory News
    News

    EIOPA Responds to Stakeholder Views on Blockchain in Insurance

    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.

    May 06, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8179