Announcing New Automated Loan Deposit (ALD) Collateral Requirements Implementation Date and Updated Collateral Margins Tables

December 14, 2021

On March 14, 2022, the transition to the new ALD collateral requirements affecting in-scope institutions will be implemented.

In-scope institutions are defined as:

  • All depository institutions that are controlled (12 CFR 225.2(e)) by a Bank Holding Company (12 CFR 225.2(c)(1)) (including a Financial Holding Company (12 CFR 225.81)) or an Intermediate Holding Company (12 CFR 252.2(y)) with Fifty Billion Dollars ($50,000,000,000) or more in total consolidated assets, defined as the average over the last four calendar quarters;
  • All Foreign Banking Organizations (12 CFR 211.21(o)(1));
  • All other domestic depository institutions with Fifty Billion Dollars ($50,000,000,000) or more in total consolidated assets, defined as the average over the last four calendar quarters and
  • An institution that voluntarily becomes an in-scope institution.

In-scope institutions have been previously contacted and have been reporting additional data to the Reserve Banks in preparation for this implementation. The dual file submission requirement that has been in place for in-scope institutions will cease at implementation and only the new file format will be required. Institutions that subsequently become in-scope will be contacted by their local Federal Reserve Bank and allowed a period of time to transition to the new reporting format.

For reference, the submission requirements for in-scope institutions can be found on the File Specifications section of the Pledging Collateral page of the Discount Window and Payment System Risk website. The submission process for all other institutions remains unchanged.

Also, on March 14, 2022, the collateral margins tables for Discount Window lending and Payment System Risk purposes will be updated to reflect new collateral margins for all institutions. Changes to the tables stem from the most recent review of margins and valuation practices that the Federal Reserve routinely conducts, incorporation of updated market data and incorporation of data supplied as part of the new ALD collateral requirements.

The updated collateral margins tables can be found on the Collateral Valuation page of the Discount Window and Payment System Risk website. The updated margin tables have been separated into a securities margins table and a loan margins table. 

For loan margins, the table has separate tabs for in-scope institutions and out-of-scope institutions. In-scope institution margins are further presented in more granular tables by selecting the respective margin range link. The range in the more detailed tables will represent the minimum, median, and maximum margin that could be applied for a specific fixed or floating rate loan type.  

Out-of-scope institution margins are also presented in the more granular tables by selecting the margin range link. The detailed tables will represent a specific margin that could be applied for each particular fixed or floating rate loan type.  

Please review the 2021 Collateral Bulletin, as well as the related frequently asked questions (FAQs), for more information about the changes. Contact your local Reserve Bank with any inquiries.