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

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8280