Featured Product

    FED to Temporarily Revise FR Y-14 Reports to Conduct Stressed Analysis

    FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020. FED is proposing to revise and extend, for three years, the FR Y-14A/Q/M reports, thus allowing it to require firms to submit additional FR Y-14A and FR Y-14Q data in connection with any future re-submissions of their capital plans. Comments on this proposal must be submitted on or before November 16, 2020. The draft supporting statement and forms and instructions for FR Y-14 reports have been also published.

    On June 25, 2020, FED notified certain large firms that they would be required to resubmit and update their capital plans later this year, for additional analysis by FED, as economic conditions evolve. This additional analysis will include the global market shock and the largest counterparty default, or LCPD, components. FED has temporarily revised the FR Y-14A/Q/M reports to collect an additional full or partial FR Y-14A submission that includes stressed largest counterparty default data submitted on FR Y-14A, Schedule A (Summary) as well as additional stressed counterparty data submitted on FR Y-14Q, Schedule L (Counterparty), both as of June 30, 2020.

    The temporary revisions require the submission of data as of June 30, 2020 and all data associated with these temporary revisions are due to 45 calendar days following the publication of the scenarios. All data associated with these temporary revisions must be accompanied by an attestation signed by the chief financial officer or equivalent senior officer. Conducting additional analysis with data as of that date will enable FED to ensure that firms subject to the stress tests are adequately capitalized and able to withstand the economic effects of the COVID-19 pandemic.

    If FED needs to conduct additional analysis in connection with the re-submission of the capital plans of firms in the future, FED would need certain data. Therefore, FED proposes to revise the FR Y-14A instructions to indicate that FED may require submission of the full or partial FR Y-14A report, including stressed data associated with the largest counterparty default, in connection with the re-submission of the capital plan of a firm. FED also proposes to revise the FR Y-14Q instructions to indicate that FED may require submission of stressed FR Y-14Q, Schedule L (Counterparty) data in connection with the re-submission of the capital plan of a firm.

     

    Related Links

    Comment Due Date: November 16, 2020

    Keywords: Americas, US, Banking, COVID-19, Reporting, FR Y-14, Regulatory Capital, Stress Testing, Sensitivity Analysis, DFAST, FED

    Featured Experts
    Related Articles
    News

    EC Publishes Regulations Supplementing Investment Firms Directive

    The European Commission (EC) published three Delegated Regulations (2021/2153, 2021/2154, and 2021/2155) to supplement the Investment Firms Directive (IFD or Directive 2019/2034).

    December 07, 2021 WebPage Regulatory News
    News

    FSB Report Examines Trends in Non-Bank Intermediation in Americas

    The Financial Stability Board (FSB) published a report that presents results of the sixth non-bank financial intermediation monitoring exercise in the Americas.

    December 06, 2021 WebPage Regulatory News
    News

    BIS Discusses Regulatory Approach for Non-Bank Intermediation

    The Bank for International Settlements (BIS) published the December issue of the Quarterly Review, which analyzes the non-bank financial intermediation mechanisms that could undermine financial stability.

    December 06, 2021 WebPage Regulatory News
    News

    BoE Calls for Vendor Input for Data Collection Transformation Program

    The Bank of England (BoE) opened the Alternative Liquidity Facility, or ALF, for deposits from the participating UK-based Islamic banks for the first time.

    December 03, 2021 WebPage Regulatory News
    News

    APRA Sets LAC for D-SIBs, Proposes to Enhance Crisis Preparedness

    APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).

    December 02, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards on Interest Rate Risk in the Banking Book

    The European Banking Authority (EBA) launched three consultations on technical aspects of the revised framework capturing interest rate risks for banking book (IRRBB) positions, with the comment period ending on April 04, 2022.

    December 02, 2021 WebPage Regulatory News
    News

    EC to Review Macro-Prudential Rules while ESRB Assesses Policy Stance

    The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).

    December 01, 2021 WebPage Regulatory News
    News

    EBA Sets Out List of Banks for Mandatory Basel III Monitoring Exercise

    The European Banking Authority (EBA) published the sample of banks for the mandatory Basel III monitoring exercise, which will refer to the December 2021 data.

    December 01, 2021 WebPage Regulatory News
    News

    FED Revises Complex Institution Liquidity Monitoring Report for Banks

    The Board of Governors of the Federal Reserve System (FED) is adopting a proposal to revise and extend for three years the Complex Institution Liquidity Monitoring Report (FR 2052a) for banks.

    December 01, 2021 WebPage Regulatory News
    News

    FSB Sets Out Good Practices for Crisis Management Groups

    The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.

    November 30, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7758