OIRA publishes spring agenda
10 May 2018 Washington DC
Image: Shutterstock
The US Office of Information and Regulatory Affairs (OIRA) Office of Management and Budget has published its spring agenda, which features a number of notable items of concern to the international financial services industry.
These include a risk-based global systemically important banks (G-SIB) surcharge, with further action expected by December this year, net financial stability ratio (NSFR), with action expected by December this year and single counterparty credit limits for large banking organisations (SCCL), further action is expected by June this year.
The abstract relating to the G-SIB noted that the Board of Governors of the Federal Reserve System is providing notice of the aggregate global indicator amounts for purposes of a calculation for last year. This is required under the board's rule regarding risk-based capital surcharges for G-SIB holding companies.
This same abstract also referred to the Office of the Comptroller (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) as inviting comment on a proposed rule that would implement a stable funding requirement, the NSFR, for large and internationally active banking organisations.
It said the proposed NSFR requirement is designed to reduce the likelihood that disruptions to a banking organisation's regular sources of funding will compromise its liquidity position, as well as to promote improvements in the measurement and management of liquidity risk.
The proposed rule would also amend certain definitions in the liquidity coverage ratio rule that are also applicable to the NSFR.
In addition, the text noted that the board is proposing a modified NSFR requirement for bank holding companies and certain savings and loan holding companies that, in each case, have $50 billion or more, but less than $250 billion, in total consolidated assets and less than $10 billion in total on-balance sheet foreign exposure.
The abstract relating to SCCL referred to final rulemaking that would establish single counterparty credit limits for domestic and foreign bank holding companies with $50 billion or more in total consolidated assets.
The final rule would implement section 165(e) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires the Board to impose limits on the amount of credit exposure that such a domestic or foreign bank holding company can have to an unaffiliated company in order to reduce the risks arising from the company's failure.
This is a semi-annual exercise in which government agencies (in the specific cases referred to above the Federal Reserve System) submit non-binding assessments/plans. They are non-binding, but they do offer some insight into agency priorities, noted one industry observer.
These include a risk-based global systemically important banks (G-SIB) surcharge, with further action expected by December this year, net financial stability ratio (NSFR), with action expected by December this year and single counterparty credit limits for large banking organisations (SCCL), further action is expected by June this year.
The abstract relating to the G-SIB noted that the Board of Governors of the Federal Reserve System is providing notice of the aggregate global indicator amounts for purposes of a calculation for last year. This is required under the board's rule regarding risk-based capital surcharges for G-SIB holding companies.
This same abstract also referred to the Office of the Comptroller (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) as inviting comment on a proposed rule that would implement a stable funding requirement, the NSFR, for large and internationally active banking organisations.
It said the proposed NSFR requirement is designed to reduce the likelihood that disruptions to a banking organisation's regular sources of funding will compromise its liquidity position, as well as to promote improvements in the measurement and management of liquidity risk.
The proposed rule would also amend certain definitions in the liquidity coverage ratio rule that are also applicable to the NSFR.
In addition, the text noted that the board is proposing a modified NSFR requirement for bank holding companies and certain savings and loan holding companies that, in each case, have $50 billion or more, but less than $250 billion, in total consolidated assets and less than $10 billion in total on-balance sheet foreign exposure.
The abstract relating to SCCL referred to final rulemaking that would establish single counterparty credit limits for domestic and foreign bank holding companies with $50 billion or more in total consolidated assets.
The final rule would implement section 165(e) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires the Board to impose limits on the amount of credit exposure that such a domestic or foreign bank holding company can have to an unaffiliated company in order to reduce the risks arising from the company's failure.
This is a semi-annual exercise in which government agencies (in the specific cases referred to above the Federal Reserve System) submit non-binding assessments/plans. They are non-binding, but they do offer some insight into agency priorities, noted one industry observer.
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