FHFA published a Federal Register notice specifying that it issued Orders, dated March 05, 2019, with respect to the stress test reporting as of December 31, 2018, under section 165(i)(2) of the Dodd-Frank Act. Summary instructions and guidance accompanied the Orders and also provided testing scenarios. The Orders were issued to Fannie Mae, Freddie Mac, and Federal Home Loan Banks (FHLBanks). Each regulated entity shall report to FHFA and to FED the results of the stress testing, as required by 12 CFR 1238, in the form and with the content described therein and in the summary instructions and guidance, with Appendices 1 through 12 thereto.
FHFA is responsible for ensuring that the regulated entities operate safely and soundly, including the maintenance of adequate capital and internal controls; that their operations and activities foster liquid, efficient, competitive, and resilient national housing finance markets; and that they carry out their public policy missions through authorized activities. These Orders are being issued under 12 U.S.C. 4516(a), which authorizes the Director of FHFA to require by Order that the regulated entities submit regular or special reports to FHFA and establishes remedies and procedures for failing to make reports required by Order. The Orders, through the accompanying summary instructions and guidance, prescribe, for the regulated entities, the scenarios to be used for stress testing. The summary instructions and guidance also provide, to the regulated entities, advice concerning the content and format of reports required by the Orders and the rule.
The Enterprises (Fannie Mae and Freddie Mac) must submit results of the Baseline, Adverse, and Severely Adverse scenarios to FHFA and FED on or before May 20, 2019 and must publicly disclose a summary of the results of only the Severely Adverse scenario between August 01 and August 15. FHLBanks are to report results of the Baseline, Adverse, and Severely Adverse scenarios to FHFA and FED by August 31 and publicly disclose a summary of the results of only the Severely Adverse scenario between November 15 and November 30.
Keywords: Americas, US, Banking, DFAST, Stress Testing, Dodd-Frank Act, Orders, Reporting, Fannie Mae, Freddie Mac, FHL Bank System, FED, FHFA
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The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
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 Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
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 Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.