Featured Product

    OCC to Renew Information Collections on Lending and Liquidity Risk

    March 01, 2022

    The Office of the Comptroller of the Currency (OCC) published notices seeking comments on the renewal of two information collections titled “Funding and Liquidity Risk Management” and “Leveraged Lending.” The comment period on both the notices ends on April 25, 2022. In addition, the Board of Governors of the Federal Reserve System (FED) approved certain merger and acquisition applications for certain banks.

    The information collection on funding and liquidity risk management concerns a Policy statement that summarizes the principles of sound liquidity risk management that the Federal banking agencies have issued in the past and, where appropriate, harmonizes these principles with the international statement issued by the Basel Committee on Banking Supervision titled “Principles for Sound Liquidity Risk Management and Supervision.” Section 20 of the Policy Statement states that liquidity risk reports should provide aggregate information with sufficient supporting detail to enable management to assess the sensitivity of the institution to changes in market conditions, its own financial performance, and other important risk factors. Institutions also should report on the use and availability of government support, such as lending and guarantee programs, and implications on liquidity positions, particularly since these programs are generally temporary or reserved as a source for contingent funding. The Policy Statement describes supervisory expectations for all depository institutions, including banks, savings associations, and credit unions, with estimated respondents for the information collection being 1,069.

    The information collection on leveraged lending concerns the guidance from certain supervisory agencies to the financial institutions they supervise on how to evaluate and monitor credit risks in leveraged loans, understand the effect of changes in borrowers' enterprise values on credit portfolio quality, and assess the sensitivity of future credit losses to these changes in enterprise values. The final guidance recommends that financial institutions consider developing underwriting policies for leveraged lending, including stress-testing procedures for leveraged credits; risk management policies, including stress-testing procedures for pipeline exposures; and policies and procedures for incorporating the results of leveraged credit and pipeline stress tests into the firm's overall stress-testing framework. While not requirements, these recommended policies qualify as “collections of information” as defined in the Paperwork Reduction Act of 1995. Respondents to this information collection are financial institutions with leveraged lending activities as defined in the guidance that may develop policies recommended in the guidance, with the estimated number of respondents expected to be 29.

    Additionally, the FED approved the applications from:

    • Centennial Bank, Conway, Arkansas, to merge with Happy State Bank and to establish and operate branches at the locations of the main office and branches of Happy State Bank.
    • Home BancShares, Inc., Conway, Arkansas, to acquire Happy Bancshares, Inc., Canyon, Texas, and thereby indirectly acquire Happy State Bank, Happy, Texas.
    • South State Corporation, Winter Haven, Florida, to acquire Atlantic Capital Bancshares, Inc., and thereby indirectly acquire its subsidiary bank, Atlantic Capital Bank, National Association, both of Atlanta, Georgia.
    • Stock Yards Bancorp, Inc., Louisville, Kentucky, to acquire Commonwealth Bancshares, Inc., and indirectly acquire its subsidiary bank, Commonwealth Bank & Trust Company, both of Louisville, Kentucky.
    • TriCo Bancshares, Chico, California, to acquire Valley Republic Bancorp, and thereby indirectly acquire its subsidiary bank, Valley Republic Bank, both of Bakersfield, California.
    • A.N.B. Holding Company, Ltd., to increase its ownership interest of The ANB Corporation, both of Terrell, Texas. The ANB Corporation controls The American National Bank of Texas, Terrell, Texas.

     

    Related Links

     

    Keywords: Americas, US, Banking, Lending, Credit Risk, Leveraged Lending, Liquidity Risk, Basel, Information Collection, Reporting, Consolidation of Banks, OCC, FED

    Featured Experts
    Related Articles
    News

    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.

    March 13, 2023 WebPage Regulatory News
    News

    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.

    March 12, 2023 WebPage Regulatory News
    News

    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.

    March 03, 2023 WebPage Regulatory News
    News

    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.

    March 02, 2023 WebPage Regulatory News
    News

    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.

    February 28, 2023 WebPage Regulatory News
    News

    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.

    February 28, 2023 WebPage Regulatory News
    News

    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.

    February 28, 2023 WebPage Regulatory News
    News

    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

    February 24, 2023 WebPage Regulatory News
    News

    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.

    February 21, 2023 WebPage Regulatory News
    News

    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

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793