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Financial Institution Letter

Banker Webinar: New Standardized Approach for Calculating the Exposure Amount of Derivative Contracts

January 31, 2020  |  FIL-06-2020

Summary:

The FDIC will host a webinar to discuss the "standardized approach for counterparty credit risk" (SA-CCR), a new risk-based capital approach for calculating the exposure amount for derivative contracts, on February 18, 2020 from 2:00 p.m. to 3:00 p.m. Eastern Time (ET).

Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter is applicable to all FDIC-supervised institutions. However, only advanced approaches banking organizations are required to use SA-CCR.

Highlights:

  • In November 2019, the FDIC, Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency adopted a final rule that, for purposes of the risk-based capital rules, implements SA-CCR, which is an updated methodology for measuring counterparty credit risk for derivative contracts. SA-CCR replaces the "current exposure methodology" for large, internationally active banking organizations; other, smaller banking organizations can voluntarily adopt SA-CCR.
  • The FDIC will host a webinar on Tuesday, February 18, 2020 from 2:00 p.m. to 3:00 p.m. ET to discuss SA-CCR, as well as other relevant provisions of the final rule.
  • Participants can join the webinar event using the following link: https://www.mymeetings.com/nc/join.php?i=PWXW9901148&p=2697858&t=c
  • Participants may dial in to the webinar by calling 888-989-4345 and using participant passcode 2697858.
  • A question-and-answer session will follow the presentation. We encourage participants to submit questions via email before the webinar to capitalmarkets@fdic.gov or during the webinar to rac@fdic.gov.
  • Conference slides and a recording of the event will be archived for viewing on the FDIC's Capital Markets website.

Suggested Distribution:

FDIC-Supervised Institutions

Suggested Routing:

Chief Executive Officer
Chief Financial Officer
Chief Risk Officer

Related Topics:

Capital Adequacy of FDIC-Supervised Institutions,
12 CFR Part 324 (Regulatory Capital Rules)

Attachments:

Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).