On October 15, 2012, the FDIC published in the Federal Register (77 FR 62417) a final rule on annual stress testing (Annual Stress Test Rule) that is applicable to all state nonmember banks and state savings associations with over $10 billion in total consolidated assets (covered banks) pursuant to the requirements of section 165(i)(2) of the Dodd-Frank Act Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System (Board) issued annual stress test final rules for their regulated entities near in time to the FDIC's Annual Stress Test Rule. The regulations across the banking agencies are consistent and comparable as required by the Dodd-Frank Act.
The Dodd-Frank Act stress testing requirements apply to all covered banks (those with over $10 billion in total consolidated assets), but the FDIC recognized that the stress tests for covered banks with consolidated total assets of $50 billion or more would be applied to more complex portfolios and therefore warranted a broader set of reports to adequately capture the results of the company-run stress tests. These reports necessarily required more detail than would be appropriate for smaller, less complex institutions. Therefore, in coordination with the other Federal banking agencies, the FDIC specified separate reporting templates: (1) for covered banks with total consolidated assets of greater than $10 billion and less than$50 billion and (2) for covered banks with total consolidated assets of $50 billion or more.
On April 14, 2014, the FDIC published a final rule in the Federal Register that revise and replace the FDIC's risk-based and leverage capital requirements to be consistent with agreements reached by the Basel Committee on Banking Supervision in "Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems" (Basel III). In light of the finalization of the Basel III capital rules, the FDIC is revising the FDIC DFAST 10-50 reporting templates to reflect the requirements of the revised capital framework.
The specific changes to the reporting templates entail:
o Revisions to the FDIC DFAST 10-50 Summary Schedule to add a common equity tier 1 capital data item.
o Revisions to the FDIC DFAST 10-50 Balance Sheet Schedules (baseline, adverse, and severely adverse scenarios) by adding a common equity tier 1 risk based capital ratio data item.
In addition, the FDIC is clarifying the FDIC DFAST 10-50 reporting form instructions to emphasize that a covered bank should transition to the revised capital framework requirements in its bank-run stress test projections in the quarter in which the revised capital framework requirements become effective. Specifically, a covered bank would be required to comply with the revised capital framework and begin including the common equity tier 1 capital data item and common equity tier 1 risk based capital ratio data item in projected quarter 2 (1st quarter, 2015) through projected quarter 9 (4th quarter, 2016) for each supervisory scenario for the 2015 stress test cycle.
The FDIC is revising the FDIC DFAST 10-50 reporting templates to reflect the requirements of the revised capital framework, resulting in a small increase in burden.
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Uncollected
Gary Kuiper 202 898-3877 gkuiper@fdic.gov
No
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form FDIC DFAST-14A "Annual Stress Test Reporting Template and Documentation for Covered Banks with Total Consolidated Assets of $50 Billion or More under the Dodd-Frank Wall Street Reform and Consumer Protection Act.''
SPST-0189 DFAST for $10BB-50BB Templates Final.docx
Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions with Total Consolidated Assets of $10 Billion to $50 Billion under the Dodd-Frank Wall Street Reform and Co