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    FED to Temporarily Revise FR Y-14 Reports to Conduct Stressed Analysis

    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.

     

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    Comment Due Date: November 16, 2020

    Keywords: Americas, US, Banking, COVID-19, Reporting, FR Y-14, Regulatory Capital, Stress Testing, Sensitivity Analysis, DFAST, FED

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