Featured Product

    OCC Proposes Revisions to Templates and Guidance on Stress Testing

    November 01, 2021

    The Office of the Comptroller of the Currency (OCC), published in the Federal Register, a proposal to revise the information collection for the company-run annual stress test reporting template and documentation for covered Institutions with consolidated assets of USD 250 billion or more, under the Dodd-Frank Act. The revised regulatory reporting requirements are applicable to national banks and federal savings associations and the comment period for the proposal ends on December 27, 2021. OCC is also consulting on the supervisory guidance on stress testing for banking organizations with consolidated assets of more than USD 10 billion. The comment period for this guidance ends on November 29, 2021.

    The proposed changes to the template for company-run annual stress test reporting (institutions with consolidated assets of USD 250 billion or more) entail only limited updates to reflect the changes made by the Federal Reserve Board (FED). The proposed OCC reporting forms will substantially resemble the forms used last year. Some of the changes are inapplicable to OCC-regulated institutions and involve new items that would not be collected by the OCC under the proposed changes. For example, the OCC's, FED's, and Federal Deposit Insurance Corporation's January 06, 2021 final rule revising risk-based capital requirements included new items on the FR Y-14A that are inapplicable at the depository institution level and will, therefore, not be collected under the  revisions proposed by OCC. Similarly, in 2021, the reporting forms from OCC did not collect other items collected on the 2021 FR Y-14A, and the proposed changes of OCC do not include these items. The changes proposed by OCC include the minimal adjustments necessary to align line items with placement on the 2021 FR Y-14A. If FED proposes additional changes to the FR Y-14A reporting forms after the publication of this notice, the OCC expects to make corresponding changes to the OCC reporting forms to minimize inconsistencies and reduce burden.

    The proposed supervisory guidance (for institutions with consolidated assets of USD 10 billion) provides an overview of how a banking organization should structure its stress testing activities to ensure that those activities fit into the banking organization's overall risk management. The purpose of the guidance is to outline broad principles for a satisfactory stress testing framework and describe how stress testing should be used. While the guidance is not intended to provide detailed instructions for conducting stress testing for any particular risk or business area, it does describe several types of stress testing activities and how they may be most appropriately used by banking organizations. The guidance also does not explicitly address the stress testing requirements imposed on certain banking organizations by section 165(i) of the Dodd-Frank Act.

     

    Related Links

    Keywords: Americas, US, Banking, Stress Testing, Guidance, Reporting, Dodd-Frank Act, DFAST, DFAST 10-50, FED

    Featured Experts
    Related Articles
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697