New ALD Collateral Requirements
Last Updated: April 2, 2019
Please note that these requirements do not apply to all institutions
The Federal Reserve is announcing that previously identified “in-scope” institutions that are required to submit newly formatted ALD collateral reports must begin submitting both their existing ALD file for valuation purposes as well as their new ALD file submission with the newly identified loan fields beginning next month (May 2019).
The new ALD requirements do not apply to all institutions.
The following “in-scope” institutions are required to begin submitting the additional loan fields beginning in May 2019:
- All DIs that are underneath a Bank Holding Company (including a Financial Holding Company) or an Intermediate Holding Company with $50B or more in total consolidated assets, which is defined as the average over the last four calendar quarters.
- All Foreign Banking Organizations.
All other domestic institutions with $50B or more in total consolidated assets, which is defined as the average over the last four calendar quarters.
Institutions that met the “in-scope” definition as of November 28, 2017, have already been contacted to ensure awareness of the new requirements. If your institution becomes “in-scope”, the Federal Reserve will contact you at that time to inform you of the need to comply with the new requirements. However, your institution may voluntarily participate in the new ALD collateral reporting requirements at any time. Please contact your local Federal Reserve Bank in order to pursue this option.
Institutions that are not required to submit additional loan fields and do not voluntarily participate do not need to take any action and should continue to submit their ALD collateral reports in the current format.
Questions regarding the new ALD collateral report submission requirements can be submitted here. Institutions may also contact their Federal Reserve Bank's Discount Window collateral staff with other inquires.
Collateral management is a central element of the Federal Reserve’s credit risk management practices. Accordingly, the Federal Reserve periodically conducts reviews of its margins and valuation practices, making adjustments as needed. The new requirements for submitting ALD collateral reports continue that practice.
See the Collateral Bulletin applicable to these changes below:
November 28, 2017 Collateral Bulletin
February 6, 2018 Collateral Bulletin
May 24, 2018 Collateral Bulletin
October 10, 2018 Collateral Bulletin
April 2, 2019 Collateral Bulletin
For further detail, see related Frequently Asked Questions