FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128). The form has been revised to collect four new data items related to the Paycheck Protection Payment (PPP) loans and the Paycheck Protection Program Liquidity Facility (PPPLF). The form has also been revised to collect two new items related to Section 4013 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Section 4013 of the CARES Act allows holding companies the flexibility to modify loans related to the COVID-19 pandemic. Additionally, FED invites comments on a proposal to extend the FR Y-9 family of reports for three years, with these revisions to the FR Y-9C. Comments must be submitted on or before 60 days after publication in the Federal Register. FED published a draft reporting form for FR Y-9C and a draft supporting statement for FR Y-9 reports.
The temporary revisions to FR Y-9C include the following:
- New Data Items related to the PPP loans and PPPLF—Starting with the June 30, 2020 reporting period, a holding company will be required to report the total number of PPP loans outstanding and the outstanding balance of PPP loans. A holding company will also be required to report the outstanding balance of PPP loans pledged to the liquidity facility of FED and the quarterly average amount of PPP loans pledged to the liquidity facility and excluded from average total assets in the calculation of the leverage ratio. These items have been added to Schedule HC-M, as items 25.a, 25.b, 25.c, and 25.d, and would enable supervisory staff to monitor credit and liquidity risk, aggregate industry trends, and individual institutions’ use of the PPPLF. Therefore, FED temporarily approved the addition of four new data items to collect this information, with the collection of these items expected to be time-limited.
- New Data Items related to Section 4013 of the CARES Act—Consistent with section 4013(d)(2) of the CARES Act, FED has added two new data items for section 4013 loans to the FR Y-9C. These would be collected quarterly beginning with the June 30, 2020, report date. These new items, Memorandum item 16.a, “Number of Section 4013 loans outstanding,” and Memorandum item 16.b, “Outstanding balance of Section 4013 loans,” have been added to Schedule HC-C, Part I, Loans and Leases. These items would enable supervisory staff to monitor credit risk, aggregate industry trends, and individual institutions’ use of the temporary relief provided by section 4013. FED will collect institution-level section 4013 loan information on a confidential basis.
FED would collect these items through the December 31, 2021, as-of date. If FED subsequently determines that there is a supervisory need for this information beyond December 31, 2021, an extension of these items would be published for comment in a separate Federal Register notice.
- Notice (PDF)
- Draft Reporting Form for FR Y-9C (PDF)
- Supporting Statement for FR Y-9 Reports (PDF)
- Reporting Form Updates
Comment Due Date: FR+60 days
Keywords: Americas, US, Banking, COVID-19, Paycheck Protection Program, Reporting, CARES Act, PPPLF, FR Y-9C, Liquidity Facility, Credit Risk, Liquidity Risk, FED
Previous ArticleEC Launches Consultation on Review of Solvency II Directive
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.