FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020. FED is proposing to revise and extend, for three years, the FR Y-14A/Q/M reports, thus allowing it to require firms to submit additional FR Y-14A and FR Y-14Q data in connection with any future re-submissions of their capital plans. Comments on this proposal must be submitted on or before November 16, 2020. The draft supporting statement and forms and instructions for FR Y-14 reports have been also published.
On June 25, 2020, FED notified certain large firms that they would be required to resubmit and update their capital plans later this year, for additional analysis by FED, as economic conditions evolve. This additional analysis will include the global market shock and the largest counterparty default, or LCPD, components. FED has temporarily revised the FR Y-14A/Q/M reports to collect an additional full or partial FR Y-14A submission that includes stressed largest counterparty default data submitted on FR Y-14A, Schedule A (Summary) as well as additional stressed counterparty data submitted on FR Y-14Q, Schedule L (Counterparty), both as of June 30, 2020.
The temporary revisions require the submission of data as of June 30, 2020 and all data associated with these temporary revisions are due to 45 calendar days following the publication of the scenarios. All data associated with these temporary revisions must be accompanied by an attestation signed by the chief financial officer or equivalent senior officer. Conducting additional analysis with data as of that date will enable FED to ensure that firms subject to the stress tests are adequately capitalized and able to withstand the economic effects of the COVID-19 pandemic.
If FED needs to conduct additional analysis in connection with the re-submission of the capital plans of firms in the future, FED would need certain data. Therefore, FED proposes to revise the FR Y-14A instructions to indicate that FED may require submission of the full or partial FR Y-14A report, including stressed data associated with the largest counterparty default, in connection with the re-submission of the capital plan of a firm. FED also proposes to revise the FR Y-14Q instructions to indicate that FED may require submission of stressed FR Y-14Q, Schedule L (Counterparty) data in connection with the re-submission of the capital plan of a firm.
- Federal Register Notice
- Draft Supporting Statement (PDF)
- Draft Reporting Form FR Y-14A (PDF)
- Draft Reporting Instructions FR Y-14A (PDF)
- Draft Reporting Instructions FR Y-14Q (PDF)
- Reporting Form Updates
Comment Due Date: November 16, 2020
Keywords: Americas, US, Banking, COVID-19, Reporting, FR Y-14, Regulatory Capital, Stress Testing, Sensitivity Analysis, DFAST, FED
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
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 Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances