The Board of Governors of the Federal Reserve System (FED) proposed revisions and three-year extension of the FRY-9 reports on financial statements for holding companies (OMB Control Number 7100-0128). The proposed revisions relate to the standardized approach for counterparty credit risk (SA-CCR), brokered deposits, and contact information of Chief Executive Officers. The comment period for the proposed revisions ends on November 08, 2021. FED has also published the draft reporting forms, draft instructions, and draft supporting statement for the FR Y-9 reports, which include the FRY-9C report.
FED proposed to revise the FR Y-9C forms and instructions by adding the new line item 31.b titled “Standardized Approach for Counterparty Credit Risk opt-in election.” FED is proposing to add this new item to identify holding companies that have chosen to either early adopt or voluntarily elect SA-CCR. Due to the inherent complexity of adopting SA-CCR, this identification is important for the non-advanced approaches institutions that choose to voluntarily adopt SA-CCR. A non-advanced approaches holding company that adopts SA-CCR would enter “1” for “Yes” in line item 31.b. All other non-advanced approaches holding companies would leave this item blank. If a non-advanced approaches holding company has elected to use SA-CCR, the holding company may change its election only with the prior approval of FED. An advanced approaches holding company that elects to early adopt SA-CCR prior to the January 01, 2022 mandatory compliance date would enter “1” for “Yes” in line item 31.b. After January 01, 2022, an advanced approaches holding company would leave this item blank.
This proposed reporting change would take effect starting with the FR Y-9C report from the December 31, 2021 reference date. This item would no longer be applicable to the advanced approaches holding companies starting with the March 31, 2022 report date. In the context of this revision, no material change in burden is estimated for the FR Y-9C report. In addition, FED proposes to revise the FR Y-9C Glossary entries on “Brokered Deposits” and “Brokered Retail Deposits” to clarify the term “deposit broker” consistent with recent changes to Federal Deposit Insurance Corporation (FDIC) regulations. FED is, however, not proposing to revise the FR Y-9C form or instructions with respect to brokered deposits. Finally, FED proposes to revise reports and instructions for the FR Y-9C and FR Y-9SP forms to collect the name, phone number, and e-mail address of the Chief Executive Officer of holding company.
- Federal Register Notice
- Draft Reporting Form for FR Y-9C (PDF)
- Draft Reporting Instructions for FR Y-9C (PDF)
- Draft Supporting Statement (PDF)
- Reporting Form Updates
Comment Due Date: November 08, 2021
Keywords: Americas, US, Banking, Reporting, FR Y-9C, SA CCR, Credit Risk, Standardized Approach, Brokered Deposits, Governance, FDIC, FED
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
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