US
The Bank Policy Institute (BPI) Outlines Considerations on Bank Supervision
The Bank Policy Institute (BPI) has outlined considerations on evolving bank supervision by responding to an OCC speech on evolving bank supervision with 4 key considerations: 1) Prioritizing Risk-Based Supervision; 2) The Asymmetries of Supervision: bankers frequently encounter an examination culture and practices that are increasingly focused on process rather than substance; 3) Horizontal Supervision: this may have certain benefits, also poses risks such as giving one-size-fits-all prescriptions; and 4) Designating Domestically Important Banks: this already exists in Dodd-Frank prudential standards for large bank holding companies (BHC’s), but regulators need to clarify.
The Office of the Comptroller of the Currency (OCC) approves Final Rule updating regulations for business combinations
The OCC has approved a final rule effective beginning January 1, 2025 (following Federal Register publication) updating its regulations for business combinations involving national banks and federal savings associations, including a policy statement clarifying its review of applications under the Bank Merger Act (BMA). The policy statement specifically discusses general principles for the OCC’s review of applications under the BMA, including indicators for applications that are more likely to withstand scrutiny and be approved expeditiously and indicators for applications that raise supervisory or regulatory concerns which most likely need to be resolved prior to OCC approval.
The Financial Accounting Standards Board (FASB) Issues Technical Release Notes DRAFT for 2025 XBRL Taxonomy
The Financial Accounting Standards Board (FASB) has issued proposed technical and other conforming improvements for the 2025 SEC Reporting Taxonomy (SRT). This release published for public comment (closing 11/5/2024) invites feedback on adjustments aimed at refining the taxonomy’s usability. The proposed changes include the introduction of new elements, as well as updates to labels and references to improve the taxonomy’s effectiveness for GAAP filers, reflecting the evolving needs of the reporting community. Previous iterations of the taxonomy have undergone similar refinements designed to maintain a high-quality adaptable framework for digital reporting.
Global
Financial Stability Board (FSB) Speech on Non-Bank Financial Institutions (NBFIs)
The FSB spoke on “Building bridges: the case for better data and coordination for the non-bank sector”. The non-bank sector is increasingly critical to the global financial system and better data is needed from this sector, as it has been central in amplifying shocks during periods of stress over the past decade. Fintechs and online lending platforms have led to new forms of financial intermediation. Regulation has focused on investor protection or market integrity, but the FSB has argued for a financial stability perspective to capture the systemic nature of risks globally, including considering actions so that market participants are better prepared for margin and collateral calls.
The International Accounting Standards Board (IASB) Review of the Statement of Cash Flows (IAS 7)
The IASB has announced the start of a research project to review and improve the requirements for the Statement of Cash Flows (IAS 7) and related matters in IFRS Accounting Standards. The project is in response to feedback during the IASB’s Third Agenda Consultation when investors, companies and others identified this project as a high priority. Stakeholders, particularly investors, suggested requirements in IAS 7 could be enhanced regarding useful information to users of financial statements. The IASB will conduct its initial research to gather evidence on perceived deficiencies in current reporting and benefits of developing new financial reporting requirements, determining next steps for Q1 2025.
