News & Analysis as of

Risk Management Stress Tests

Cadwalader, Wickersham & Taft LLP

May Market Moves, May 2025 - Modifications to the Capital Plan Rule and Stress Capital Buffer Requirement – Notice of Proposed...

The Federal Reserve Board has requested comment on a proposal designed to reduce the volatility of the capital requirements stemming from its annual stress tests. The proposal would achieve this primarily by averaging the...more

A&O Shearman

BoE publishes two new stress test scenarios for 2025 Bank Capital Stress Test

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The Bank of England (BoE) has updated its stress testing webpage, announcing it has published two stress test scenarios for use by banks and building societies that are not participants in its concurrent stress testing...more

A&O Shearman

EBA peer review report on the performance of stress tests by deposit guarantee schemes

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The European Banking Authority (EBA) has published a report on the findings of a peer review of the performance of stress tests by deposit guarantee schemes (DGS). The aim of the peer review was to assess the performance of...more

A&O Shearman

Bank of England 2025 bank capital stress test launched

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The Bank of England (BoE) has launched the 2025 bank capital stress test for the seven largest and most systemic UK banks and building societies. The exercise is the successor to the Annual Cyclical Scenario. The test...more

A&O Shearman

International bodies report on streamlining variation margin processes and initial margin responsiveness of margin models in...

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The Basel Committee on Banking Standards and International Organization of Securities Commissions published a final report on streamlining variation margin processes and initial margin responsiveness of margin models in...more

Latham & Watkins LLP

European Banking Authority Launches Consultation on Guidelines on ESG Scenario Analysis

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The draft guidelines outline expectations for institutions to adopt forward-looking strategies and incorporate scenario analysis into their management framework to assess resilience against the negative impacts of ESG...more

Hogan Lovells

UK: The PRA sets out its supervisory priorities for insurers in 2025

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On 9 January 2025, the Prudential Regulation Authority (PRA) published its annual Dear CEO Letter setting out its priorities for the supervision of (re)insurers in 2025.    Similar to last year, financial and operational...more

Troutman Pepper Locke

Wall Street Notches Another Win as Fed’s Barr Clears the Way for Gentler Banking Regulator

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Alex Barrage, a partner with Troutman Pepper Locke, was quoted in the January 7, 2025 CNBC article, “Wall Street Notches Another Win as Fed’s Barr Clears the Way for Gentler Banking Regulator.”...more

Goodwin

Loan Fund Structures under AIFMD2: ESMA’s Proposals

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In our recent alert Loan Origination Under AIFMD2: A Guide on loan origination under the revised Alternative Investment Fund Managers Directive (AIFMD2), we noted that the European Securities and Markets Authority (ESMA)...more

Patomak Global Partners

Stress Test Results Keep Risk Management Capabilities in Focus

Situation Overview: The Federal Reserve Board (FRB) uses the stress tests as a key supervisory tool to explore risks across large banks. This year’s results quantified the impact to banks under multiple new scenarios,...more

Venable LLP

Stressed Out - Final Interagency Guidance on Climate Risk Management for Large Banks

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The federal banking agencies recently issued final interagency guidance concerning how large banks may control for climate-related financial risks (“climate risks”). The guidance is largely consistent with the proposal and...more

Goodwin

CFPB Launches New Initiative Focused on Rural Communities

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In This Issue. The Consumer Financial Protection Bureau (CFPB) announced a new initiative focused on financial issues faced by rural communities and also updated its examination procedures to cover unfair discrimination; the...more

Mitratech Holdings, Inc

UK Finance Webinar Recap: Operational Resilience – Lessons Learnt from the Crisis

The Pandemic Crisis has offered the financial services sector a live stress test environment to assess its planning, systems, and processes for Operational Resilience. To explore this and see how institutions have fared so...more

Goodwin

SEC Adopts New Regulatory Framework For Registered Fund Derivative Investments

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On October 28, the Securities and Exchange Commission (the “SEC”) adopted Rule 18f-4 (the “Rule”) under the Investment Company Act of 1940 (the “1940 Act”) and amended related rules designed to provide a modernized,...more

Goodwin

SEC Charges Trust Company With Operating Unregistered Investment Companies

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SEC Charges Trust Company with Operating Unregistered Investment Companies and Failing to Register Securities Offerings. On September 30, the Securities and Exchange Commission (SEC) announced it had settled charges with...more

Goodwin

Financial Services Weekly News: FDIC Releases Guide To Connect Fintechs With Banks

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In This Issue. The Federal Deposit Insurance Corporation (FDIC) released a new guide to help financial technology companies and others partner with banks; the Financial Industry Regulatory Authority (FINRA) announced that it...more

Orrick - Finance 20/20

OCC Extends Dodd-Frank Act Stress Test Requirements Through November 25

Orrick - Finance 20/20 on

The Office of the Comptroller of the Currency (OCC) announced that the deadline to comply with Dodd-Frank Act Stress Test (DFAST) requirements will be extended to November 25, and thereafter will be discontinued. ...more

A&O Shearman

UK Prudential Regulation Authority Finalizes Model Risk Management Principles for Stress Testing

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The U.K. Prudential Regulation Authority has published a Policy Statement and a finalized Supervisory Statement following a consultation which ran from December 2017 to March 2018 on model risk management principles for...more

A&O Shearman

Financial Regulatory Developments Focus - February 2018

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In this week's newsletter, we provide a snapshot of the principal U.S., European and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructure providers, asset...more

Vedder Price

Investment Services Regulatory Update - November 2017

Vedder Price on

New Rules, Proposed Rules, Guidance and Alerts - SEC STAFF GUIDANCE AND ALERTS - SEC Staff Issues No-Action Letters to Facilitate Cross-Border Compliance with the Research “Unbundling” Provisions of the European...more

Orrick, Herrington & Sutcliffe LLP

Orrick's Financial Industry Week In Review

Financial Industry Developments - Class Action Against Lending Club and WebBank Headed to Defeat - On Monday, January 31, 2017, a federal district court in the Southern District of New York granted a motion to...more

Morrison & Foerster LLP

Tailoring More Stringent Prudential Standards Under Section 165 of Dodd-Frank: Fed Finalizes Stress Test Relief for Large and...

On January 30, 2017, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) adopted a final rule (the “Final CCAR Rule”) that revises the capital plan and stress test rules under the Dodd-Frank Wall...more

Orrick - Finance 20/20

EBA Clarifies Use of 2016 EU-Wide Stress Test Results in SREP Process

On July 1, 2016, the EBA published additional information on how the results of the EU-wide stress test will inform the Supervisory Review and Evaluation Process (“SREP”). The focus of the update is to explain how...more

Bryan Cave Leighton Paisner

Interagency CRE Guidance Update

In the ancient world kings and emperors regularly sought advice from the Oracle at Delphi when making important decisions. The Oracle would respond to questions, sometimes in poetry, other times in prose, in a manner that...more

Broker-Dealer Compliance + Regulation

SEC Expected to Propose Liquidity Risk Management Programs for Funds

The Securities and Exchange Commission announced that it will consider proposals for liquidity risk management programs and related disclosures for open-end management investment companies. The Commission will consider the...more

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