OCC Consults on Stress Test Report and FDIC Sets Priorities for 2022
The Office of the Comptroller of the Currency (OCC) is seeking comments on the final version of the proposed revisions to a regulatory reporting requirement for the company-run annual Dodd-Frank Act Stress Test (DFAST) reporting template and instructions for covered institutions with consolidated assets of USD 250 billion or more. OCC has revised the reporting requirements to mirror the requirements in the form FR Y-14A of FED and its 2022 changes include the minimal adjustments necessary to align line items with placement on the 2022 FR Y-14A. The comment period for these reporting requirement revisions ends on March 04, 2022. In addition, the Federal Deposit Insurance Corporation (FDIC) has set out its priorities for 2022.
The FDIC’s key priorities for the year are as follows:
- Address Financial Risks Posed by Climate Change—Addressing the financial risks that climate change poses to banking organizations and the financial system will be a top priority of the FDIC. FDIC plans to seek public comment on a guidance to help banks prudently manage the climate-related financial risks, establish an FDIC interdivisional, interdisciplinary working group on climate-related financial risks, and join the International Network of Central Banks and Supervisors for Greening the Financial System.
- Finalize Basel III Capital Rule—FDIC will focus on implementation of BCBS final agreement on modifications to the Basel III international regulatory framework, which will strengthen the regulatory framework for large banking organizations, including strengthening the capital requirements related to market risk, operational risk, and the risks associated with financial derivatives.
- Evaluate Crypto-Asset Risks—Robust guidance for the banking industry on the management of prudential and consumer protection risks raised by crypto-asset activities is another task in focus.
- Review Bank Merger Process—In light of the significant implications of bank mergers for competition, safety and soundness, financial stability, and meeting the financial services needs of communities, a careful interagency review of the bank merger process is warranted.
- Strengthen Community Reinvestment Act (CRA)—FDIC and other federal banking agencies are working on a major revision of the rule implementing CRA and plan to act jointly on a notice of proposed rulemaking in the near future that would strengthen and enhance CRA. CRA requires banks to meet the credit needs of all the communities they serve, including low- and moderate-income communities.
Related Links
- Federal Register Notice on DFAST
- OCC Templates and Instructions
- FDIC Press Release on Priorities for 2022
Keywords: Americas, US, Banking, Reporting, Stress Testing, Dodd Frank Act, DFAST, DFAST 14A, Instructions, Climate Change Risk, Crypto Assets, FDIC, Basel, Regulatory Capital, ESG, OCC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
ESAs Recommend Actions on Digital Finance Legislative FrameworkRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.