Reading the Tea Leaves of Recent Regulatory Guidance

December 2015 was a busy month for regulatory agencies and global standard setters. Throughout last year the industry had been waiting for additional guidance on high impact topics including capital planning and allowance methodologies.

In the final stretch of 2015 both the Federal Reserve and the Basel Committee on Banking Supervision (BCBS) finally provided this additional guidance.

This white paper will explore the Federal Reserve’s “Guidance on Supervisory Assessment of Capital Planning and Positions” (SR 15-18 and SR 15-19). The paper further examines the BCBS’s “Guidance on Credit Risk and Accounting for Expected Credit Losses”.