#banking agencies

27 12, 2023

Daily122723

2023-12-29T10:36:38-05:00December 27th, 2023|2- Daily Briefing|

Banking Agencies Drill Down on NBFI Exposures

Reflecting a raft of FSOC recommendations (see Client Report FSOC29) and those from global regulators, U.S. banking agencies have proposed significant call-reporting changes gathering more data on bank/NBFI inter-connections.  Newly-granular data break-outs are proposed for credit exposure to numerous NBFIs (e.g., PEs, insurance companies, mortgage intermediaries) from banks with over $10 billion.  The agencies justify this by the sharp spike in NBFI credit exposures from 0.8 percent of reported credit to 6.4 percent of respondent data in June of this year (a number we expect downplays far larger concentrations at the nation’s biggest banks).  Granular data on off-balance sheet exposures to NBFIs would also be required along with new IDI reports on long-term debt – a proposal presumably intended to backstop the proposed LTD standards (see FSM Report TLAC9).  We will shortly review the release to determine if in-depth analysis is helpful; comments are due by February 26.

Daily122723.pdf

1 11, 2023

CLIMATE17

2023-11-01T17:55:34-04:00November 1st, 2023|1- Financial Services Management|

Large-Bank Climate-Risk Principles

The banking agencies have joined together to issue inter-agency climate-risk guidance based on proposed standards from the FDIC, OCC and FRB.  Most notably, the new standards expressly cover banking organizations over $100 billion, including FBO branches, but are indicative of the new approach to climate risk the agencies expect at any banking organization with elevated climate-risk exposure.

CLIMATE17.pdf

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