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Capital and Prudential Standards Blog

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Home Archive for category "Federal Reserve"
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Capital and Prudential Standards Blog Relaunching in Early 2017

The Davis Polk Capital and Prudential Standards Blog is under redesign. We plan to relaunch in early 2017.

In the meantime, please visit the Financial Institutions Group Capital and Prudential Standards resource page available at this link.…  Read More

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Visuals of Federal Reserve’s 2015 CCAR and Dodd-Frank Stress Test Results

We have prepared visuals of the 2015 Comprehensive Capital Analysis and Review (“CCAR“) and Dodd-Frank Act Stress Test (“DFAST“) results.   At this time, the visuals include the company-run DFAST results for 24 out of the 31 companies participating in this year’s CCAR program.

View Davis Polk’s Visuals of 2015 CCAR and DFAST Results

Background on DFAST:  Pursuant to its DFAST regulations, the Federal Reserve conducts annual supervisory stress tests to assess the potential impact of various hypothetical economic scenarios on the consolidated earnings, losses and regulatory capital of each U.S.…  Read More

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Blackline of Federal Reserve’s Revisions to Capital Planning and Stress Testing Rules

The Federal Reserve has issued a final rule that amends certain aspects of its capital planning and stress testing regulations.  We have prepared a blackline (available here) of the Federal Reserve’s final rule against the proposed rule issued in June 2014.

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Supplementary Leverage Ratio (SLR): Visual Memorandum

The U.S. banking agencies have finalized revisions to the denominator of the supplementary leverage ratio (SLR), which include a number of key changes and clarifications to their April 2014 proposal. The SLR represents the U.S. implementation of the Basel III leverage ratio. Under the U.S. banking agencies’ SLR framework, advanced approaches firms must maintain a minimum SLR of 3%, while the 8 U.S. bank holding companies that have been identified as global systemically important banks (U.S. G-SIBs) and their U.S. insured depository institution subsidiaries are subject to enhanced SLR standards.…  Read More

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U.S. Basel III Liquidity Coverage Ratio (LCR) Final Rule: Visual Memorandum

The U.S. banking agencies have issued a final rule to implement the Basel III liquidity coverage ratio (LCR) in the United States. The LCR requires large banking organizations to maintain a minimum amount of liquid assets to withstand a 30-day standardized stress scenario. The U.S. LCR final rule is more stringent than the Basel Committee’s LCR framework in several significant respects. In addition, the final rule makes a number of key changes to the proposed rule.

Davis Polk’s visual memorandum uses diagrams, flowcharts, timelines, examples and comparison tables to illustrate key aspects of the U.S.…  Read More

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Fed Governor Tarullo Discusses G-SIB Surcharge Implementation

Today, Federal Reserve Governor Daniel K. Tarullo delivered a speech that, among other things, provided a preview of the forthcoming proposal to implement the GSIB risk-based capital surcharge.

 

While our proposal will use the GSIB risk-based capital surcharge framework developed by the BCBS as a starting point, it will strengthen the BCBS framework in two important respects. First, the surcharge levels for U.S. GSIBs will be higher than the levels required by the BCBS, noticeably so for some firms. Second, the surcharge formula will directly take into account each U.S. Read More

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