OCC Bulletin 2019-47| October 10, 2019

Amendments to the Stress Testing Rule for National Banks and Federal Savings Associations: Final Rule

To

Chief Executive Officers of All National Banks and Federal Savings Associations, Department and Division Heads, All Examining Personnel, and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC) published a final rule in the Federal Register on October 10, 2019, that will amend the OCC’s stress testing rule at 12 CFR 46. The final rule implements the requirements imposed by section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

The final rule is effective as of November 24, 2019, consistent with the effective date for section 401 of the EGRRCPA.

Note for Community Banks

The final rule will raise the minimum asset threshold for national banks and federal savings associations covered by the company-run stress testing requirement from $10 billion to $250 billion in total consolidated assets.

Background

The EGRRCPA, enacted on May 24, 2018, amends certain aspects of the stress testing requirements in section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Specifically, section 401 of the EGRRCPA raises the minimum asset threshold for national banks and federal savings associations covered by the company-run stress testing requirement from $10 billion to $250 billion in total consolidated assets; revises the requirement for national banks and federal savings associations to conduct an “annual” stress test and instead requires them to conduct a “periodic” stress test; and no longer requires the OCC to provide an “adverse” stress testing scenario, thus reducing the number of required stress test scenarios from three to two. These changes are effective as of November 24, 2019.

On February 12, 2019, the OCC published in the Federal Register a notice of proposed rulemaking that would implement the changes required by the EGRRCPA. The OCC is now finalizing the proposal without change.

Further Information

Please contact Hein Bogaard, Lead Economic Expert, International Analysis and Banking Condition Division, at (202) 649-5450; or Henry Barkhausen, Counsel, or Daniel Perez, Senior Attorney, Chief Counsel’s Office, at (202) 649-5490.

 

Jonathan V. Gould
Senior Deputy Comptroller and Chief Counsel

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