Comptroller to propose conforming ‘stress-test’ rules to Fed regulations

Changes in its stress-testing rules conforming to those already adopted by the Federal Reserve are proposed by the Office of the Comptroller of the Currency (OCC) in a notice to be published Friday (Oct. 27) in the Federal Register; comments will be due in 60 days.

According to the OCC, the revisions include changing the range of possible “as-of” dates used in the global market shock component.

In addition, the proposal would change the transition process for covered institutions with $50 billion or more in assets. A covered institution that grows to a $50 billion covered institution (as defined in the OCC stress testing regulation), before Sept. 30 would become subject to the requirements applicable to an over $50 billion covered institution beginning on Jan. 1 of the second calendar year after the covered institution becomes an over-$50 billion covered institution.

A covered institution that becomes an over-$50 billion covered institution after Sept. 30 would become subject to the requirements applicable to an over-$50 billion covered institution beginning on Jan. 1 of the third calendar year after the covered institution becomes an over-$50 billion covered institution. The proposed rule would also make certain technical changes to clarify the requirements of the OCC’s stress testing regulation.

The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act requires the federal banking agencies to issue “consistent and comparable regulations to implement the statutory stress testing requirement,” the OCC notice states.

OCC proposal: Annual Stress Test—Technical and Conforming Changes

Be the first to comment

Leave a Reply

Your email address will not be published.