US Agencies (FDIC, FED, and OCC) published a joint notice regarding extension of the market risk regulatory report for institutions subject to the market risk capital rule (FFIEC 102). On June 25, 2019, the agencies, under the auspices of FFIEC, had issued a proposal to extend for three years without revision FFIEC 102, which is currently an approved collection of information for each agency. The comment period for the June 2019 notice ended on August 26, 2019. No comments were received on the proposal; therefore, FFIEC and the agencies will proceed with the extension of the FFIEC 102 as proposed. The agencies are now giving notice that they are sending the collections to OMB for review and the comment period for this notice ends on November 18, 2019.
FFIEC 102 is filed quarterly with the agencies and provides information for market risk institutions, defined for this purpose as the institutions that are subject to the market risk capital rule as incorporated into Subpart F of the agencies' regulatory capital rule (market risk institutions). Each market risk institution is required to file FFIEC 102 for the agencies' use in assessing the reasonableness and accuracy of an institution's calculation of its minimum capital requirements under the market risk capital rule and in evaluating the institution's capital in relation to its risks. Additionally, the market risk information collected in the FFIEC 102:
- Permits the agencies to monitor the market risk profile and evaluate the impact and competitive implications of the market risk capital rule on individual market risk institutions and the industry as a whole
- Provides the most current statistical data available to identify areas of market risk on which to focus for onsite and offsite examinations
- Allows the agencies to assess and monitor the levels and components of each reporting institution's risk-based capital requirements for market risk and the adequacy of the institution's capital under the market risk capital rule
- Assists market risk institutions in validating their implementation of the market risk framework
Comment Due Date: November 18, 2019
Keywords: Americas, US, Banking, Market Risk, Market Risk Capital Rule, FFIEC 102, Reporting, Regulatory Capital, FFIEC, US Agencies
Next ArticleAPRA Publishes Annual Report for 2018-19
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.