FED Proposes to Extend and Revise FR Y-14 Reports for Banks
FED issued a proposal to revise and extend for three years the Capital Assessments and Stress Testing Reports (FR Y-14A/Q/M; OMB No. 7100-0341). Comments must be submitted on or before 60 days after publication in the Federal Register. FED has also temporarily revised the FR Y-14A report pursuant to its authority to temporarily approve a collection of information without providing opportunity for public comment. The temporary revisions are applicable only to reports reflecting the December 31, 2019 as-of date. Additionally, FED has published the draft forms and instructions, along with the draft OMB supporting statement, for FR Y-14A/Q/M.
FR Y-14A/Q/M reports are used to support Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act Stress Test (DFAST) exercises and supervisory stress test models. These reports are also used in connection with the supervision and regulation of these financial institutions. FED has proposed revisions necessary to better identify risk as part of the CCAR and DFAST exercises; these revisions include revisions to the Trading and Counterparty schedules or sub-schedules as well as capital revisions related to capital simplification, total loss absorbing capacity (TLAC), and standardized approach for counterparty credit risk on derivative contracts (SA-CCR). FED also proposed to make several clarifications to the instructions that were, in part, prompted by the questions FED has received from reporting institutions. All proposed revisions would be effective for the FR Y-14Q and FR Y-14M forms for the September 30, 2020 report date and for the FR Y-14A form for the December 31, 2020 report date.
Meanwhile, FED temporarily revised the FR Y-14A report to allow eligible firms to incorporate the effects of the simplification and tailoring rules effective with the December 31, 2019 as-of date. The collections of information are applicable to top-tier U.S. bank holding companies and U.S. intermediate holding companies of foreign banking organizations with USD 100 billion or more in total consolidated assets. Covered savings and loan holding companies with USD 100 billion or more in total consolidated assets will also become respondents to the FR Y-14Q and FR Y-14M effective June 30, 2020 and will become respondents to the FR Y-14A effective December 31, 2021.
Related Links
Comment Due Date: FR+60 Days
Keywords: Americas, US, Banking, Stress Testing, FR Y-14, Dodd Frank Act, DFAST, CCAR, Reporting, Supporting Statement, TLAC, SA-CCR, Credit Risk, FED
Featured Experts
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.
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Metin Epözdemir
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.
Previous Article
SNB Releases Form for Reporting Solvency Risk of CounterpartiesRelated Articles
EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package
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.
EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway
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.
PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks
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.
FSB Sets Out Work Priorities for 2021
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 Publishes Corrigendum to Revised Capital Requirements Regulation
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs Issue Statement on Application of Sustainability Disclosures Rule
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 Consults on Crisis Management and Deposit Insurance Frameworks
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs
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 Proposes Standards for Supervisory Cooperation Under IFD
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 Addresses Banks in Scope of First Resolvability Assessment
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.
