FDIC is proposing several revisions to the stress testing regulation, which are consistent with the changes made by FED and OCC to their respective stress testing regulations. Comments must be received by June 01, 2018.
Under the proposed rule, a covered bank that becomes an over USD 50 billion covered bank on or before September 30 would become subject to the requirements applicable to an over USD 50 billion covered bank beginning on January 01 of the second calendar year after the covered bank becomes an over USD 50 billion covered bank. A covered bank that becomes an over USD 50 billion covered bank after September 30 would become subject to the requirements applicable to an over USD 50 billion covered bank beginning on January 01 of the third calendar year after the covered bank becomes an over USD 50 billion covered bank. The proposed rule would:
- Change the defined term “over USD 50 billion covered bank” to “USD 50 billion or over covered bank”
- Change the transition process for covered banks that become over USD 50 billion covered banks
- Change the range of possible “as-of” dates used in the trading and counterparty position data stress testing component
- Make technical changes to clarify the requirements of the FDIC stress testing regulation and to eliminate obsolete provisions
In 2014, FDIC, in coordination with FED and OCC, had shifted the dates of the annual stress testing cycle by approximately three months, from October 01 to January 01. The stress testing regulation of FDIC continues to include transition language to facilitate this prior schedule shift. Since transition to the new schedule is now complete, the proposed rule would remove this obsolete transition language.
Related Link: Proposed Rule
Comment Due Date: June 01, 2018
Keywords: Americas, US, Banking, Stress Testing, Dodd-Frank Act, DFAST, FED, OCC, FDIC
Previous ArticleEBA Guidelines on Assessment of Suitability of Members of Management
EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.
BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.