OCC Extends Dodd-Frank Act Stress Test Deadline to November 25, 2019
OCC announced its decision to extend, to November 25, 2019, the deadline for compliance with the Dodd-Frank Act Stress Test (DFAST) requirements applicable to national banks and federal savings associations with total consolidated assets from USD 100 billion to less than USD 250 billion. Since these banks will not be subject to the DFAST requirements as of November 25, 2019, OCC believes that there would be limited supervisory benefit in requiring DFAST submissions for these banks in 2019.
This action is consistent with the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act’s purpose of avoiding unnecessary regulatory burden for national banks and federal savings associations with total consolidated assets less than USD 250 billion. Prior DFAST exams and OCC supervision have shown that national banks and federal savings associations of this size have adopted effective stress testing programs and integrated them into their general risk management tools. Therefore, requiring DFAST submissions for these banks in 2019 would provide limited supervisory value. OCC communicated this decision by directly sending a letter to the affected banks in December 2018.
Related Links
Keywords: Americas, US, Banking, DFAST, Stress Testing, EGRRCP Act, Extension of Deadline, OCC
Featured Experts
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Laurent Birade
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
Emil Lopez
Credit risk modeling advisor; IFRS 9 researcher; data quality and risk reporting manager
Previous Article
EBA Welcomes ECA Recommendations for Improving Stress Tests in EURelated Articles
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023
