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Capital and Prudential Standards Blog

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Home Articles posted by Margaret E. Tahyar (Page 6)
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Federal Reserve Publishes Paper on Capital Planning at Large Bank Holding Companies

Today, the Federal Reserve published a paper entitled Capital Planning at Large Bank Holding Companies: Supervisory Expectations and Range of Current Practice.  The paper is intended to promote better capital planning at large bank holding companies (BHCs) and to provide greater clarity on the standards against which those practices are evaluated as part of the Federal Reserve’s annual Comprehensive Capital Analysis and Review (CCAR).

The paper discusses the Federal Reserve’s expectations for capital planning at large BHCs and described the range of practices it has observed at these companies during the past three CCAR exercises. …  Read More

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Federal Reserve Issues Final Rule Establishing Annual Dodd-Frank Assessment Fees for Supervision and Regulation of Large Financial Companies

Today, the Federal Reserve Board issued a final rule establishing annual Dodd-Frank assessment fees for its supervision and regulation of large bank holding companies, large savings and loan holding companies and nonbank financial companies designated as systemically important by the Financial Stability Oversight Council (nonbank SIFIs).

The Dodd-Frank Act directs the Federal Reserve to collect assessment fees equal to the expenses it estimates are necessary or appropriate to supervise and regulate bank holding companies and savings and loan holding companies with $50 billion or more in total consolidated assets and nonbank SIFIs.…  Read More

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U.S. Banking Regulators Propose Dodd-Frank Company-Run Stress Test Guidance for Mid-Sized Banking Organizations

Beginning this fall, many U.S. banking organizations will be conducting their first annual Dodd-Frank company-run stress tests.  Today, the U.S. banking regulators (Federal Reserve, OCC and FDIC) proposed guidance setting forth supervisory expectations for stress tests conducted by national banks, state member and non-member banks, savings associations, bank holding companies and savings and loan holding companies with total consolidated assets of greater than $10 billion and less than $50 billion (collectively, “mid-sized firms”).

The proposed guidance is intended to help mid-sized firms conduct stress tests that are appropriately scaled to their size, complexity, risk profile, business mix and market footprint. …  Read More

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U.S. Banking Agencies Propose Dodd-Frank Act Stress Test Guidance for Medium-Sized Firms

Today, the Federal Reserve, OCC and FDIC proposed supervisory guidance for stress tests conducted by banking organizations with total consolidated assets between $10 billion and $50 billion (mid-sized firms).  Medium-sized firms are required to conduct their first annual Dodd-Frank company-run stress tests beginning this fall.

Among other things, the proposed guidance describes general supervisory expectations for Dodd-Frank Act stress tests, and, where appropriate, provides examples of practices that would be consistent with those expectations.

The public comment period on the proposed supervisory guidance ends on September 25, 2013.…  Read More

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Overview of Basel Committee’s Proposed Liquidity Coverage Ratio Disclosure Standards

Today, the Basel Committee proposed a set of liquidity coverage ratio (LCR) disclosure standards.  Part of the Basel III liquidity framework, the LCR requires a banking organization to maintain a minimum amount of liquid assets to withstand a short-term liquidity stress period.  Specifically, the LCR requires a banking organization’s stock of unencumbered high-quality liquid assets (HQLAs) to be at least 100% of its total net cash outflows over a 30-day standardized supervisory liquidity stress scenario.  Following is a high-level overview of the Basel Committee’s proposed LCR disclosure standards.…  Read More

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Basel III Leverage Ratio: U.S. Proposes American Add-on; Basel Committee Proposes Important Denominator Changes

On the heels of publishing the U.S. Basel III final rule, the U.S. banking agencies have proposed higher leverage capital requirements for the eight U.S. global systemically important banks (G-SIBs) and their insured depository institution subsidiaries.  The higher leverage capital requirements, which we are calling the American Add-on, build upon the minimum Basel III supplementary leverage ratio in the U.S. Basel III final rule.

Recently, the Basel Committee on Banking Supervision has proposed important changes to the Basel III leverage ratio. …  Read More

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