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    FED Proposes to Revise and Extend FR Y-14 Reporting Forms for Banks

    FED issued a proposal to extend for three years, with revision, the Capital Assessments and Stress Testing Reports (FR Y-14A/Q/M; OMB No. 7100-0341). Comments must be submitted on or before September 30, 2019. The collections of information are applicable to the top-tier bank holding companies with total consolidated assets of USD 100 billion or more as well as the U.S. intermediate holding companies that have consolidated assets of USD 50 billion or more and that are subsidiaries of foreign banking organizations. Additionally, FED has published draft forms and instructions, along with the draft OMB supporting statement, for FR Y-14A/Q/M.

    FED proposes to implement a number of changes to schedules of FR Y-14A, FR Y-14Q, and FR Y-14M reports. The proposed revisions consist of deleting or adding items, adding or expanding schedules or sub-schedules, and modifying or clarifying the instructions for existing data items, primarily on FR Y-14Q and FR Y-14M reports. FED is proposing most of the changes to reduce reporting burden for firms, clarify reporting instructions and requirements, address inconsistencies between the FR Y-14 reports and other regulatory reports, and to account for revised rules and accounting principles. A limited number of proposed revisions would modify the reporting requirements and add or expand sub-schedules to improve the availability and quality of data to enhance supervisory modeling and for use in the Dodd-Frank Act Stress Test (DFAST). FED proposes to implement the revisions with the FR Y-14 reports as of September 30, 2019. 

    Mos of the FED-proposed changes are intended to bring the reports in alignment with the current accounting standards, rules, and other regulatory reports. This includes modifications to the existing items and the addition of items in conformance with:

    • FASB Accounting Standards Update (ASU) 2016-01 on recognition and measurement of financial assets and financial liabilities
    • ASU 2017-12 on targeted improvements to accounting for hedging activities
    • Revisions made to the Consolidated Financial Statements for Holding Companies (FR Y-9C)
    • Changes to the regulatory capital rules
    • The Tax Cuts and Jobs Act 
    • The new U.S. London Interbank Offered Rate (LIBOR) alternative

    Many of the proposed revisions are intended to reduce inconsistent reporting due to ambiguous, contradictory, or unclear instructions. The proposal would also incorporate editorial or technical edits. FED is proposing revisions to more accurately capture the data needed for running the stress tests and in support of the DFAST and Comprehensive Capital Analysis and Review (CCAR) exercises. This includes the proposed elimination of certain items from the FR Y-14M that are no longer needed because they are available from alternative data sources or are not necessary for stress tests, DFAST, or CCAR. 

    Similarly, the proposal would incorporate and formalize on the FR Y-14 several collections FED collects from a limited number of firms directly in support of running the supervisory stress test. Given the ongoing use of these data in the supervisory stress test, FED is proposing to collect them on FR Y-14 reports on new or existing schedules to reduce operational challenges with data submission and processing and to improve data quality. Finally, FED is proposing modifications to how burden estimates are displayed and seeks further comment on burden estimates. The estimated total annual burden for the FR Y-14 is 858,384 hours. The proposed revisions would result in a net decrease in burden of 17,336 hours, for a total of 841,048 hours.

     

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    Comment Due Date: September 30, 2019

    Keywords: Americas, US, Banking, Stress Testing, FR Y-14, Dodd-Frank Act, DFAST, CCAR, Reporting, Supporting Statement, FED

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