FIL-6-2020
January 31, 2020
Banker Webinar: New Standardized Approach for Calculating the Exposure Amount of Derivative Contracts
Printable Format:
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.