FED adopted a proposal to extend for three years, with revision, the capital assessments and stress testing reports (FR Y-14A/Q/M; OMB No. 7100-0341). The revisions are applicable with as-of dates ranging from September 30, 2020 to June 30, 2021. The proposed revisions consisted of changes necessary to better identify risk as part of the stress tests—such as revisions related to wholesale, trading, and counterparty exposures—as well as capital revisions related to capital simplification, total loss-absorbing capacity (TLAC), and the standardized approach for counterparty credit risk (SA-CCR). Additionally, FED has updated the forms and instructions for FR Y-14A/Q/M.
FED had also proposed to make several clarifications to the instructions; these clarifications were partly prompted by the questions that FED had received from reporting institutions. In March 2020, FED had issued the proposal to revise and extend FR Y-14 reports. The comment period for this notice expired on May 18, 2020. FED received two comment letters from banking organizations and one comment letter from a banking industry group. FED has adopted the proposed revisions with certain exceptions. In addition, although FED did not receive any comment letters regarding the proposed revisions related to a proposed rule that would modify the TLAC requirements, FED has not adopted these revisions as proposed.
FR Y-14A/Q/M reports are used to support the Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act Stress Test (DFAST) exercises. The annual FR Y-14A collects quantitative projections of balance sheet, income, losses, and capital across a range of macroeconomic scenarios and qualitative information on methodologies used to develop internal projections of capital across scenarios. The quarterly FR Y-14Q collects granular data on various asset classes, including loans, securities, trading assets, and pre-provision net revenue for the reporting period. The monthly FR Y-14M comprises retail portfolio-level and loan-level schedules, along with the detailed address-matching schedule, to supplement two of the portfolio and loan-level schedules. These collections of information are applicable to bank holding companies, U.S. intermediate holding companies, and savings and loan holding companies.
Keywords: Americas, US, Banking, Stress Testing, FR Y-14, Dodd-Frank Act, DFAST, CCAR, Reporting, TLAC, SA-CCR, Basel, FED
Previous ArticleFCA Finalizes Additional Guidance to Support Mortgage Borrowers
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.
The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA
ESMA published the final guidelines on outsourcing to cloud service providers.
EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.
OSFI has set out the schedule for release of draft guidance on the management of technology risks by federally regulated financial institutions and private pension plans.
MAS updated rules for new housing loans by banks and finance companies.
HKMA published a statement on the 100% Personal Loan Guarantee Scheme and a guideline on the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as announced in the 2021-22 Budget.