Uncategorized

Uniform Agreement On The Classification Of Assets And Appraisal Of Securities Held By Banks

This agreement does not change the long-standing definitions of asset classification agencies. As in the case of the previous version, auditors may assess and classify credit risk of a property value, regardless of the ratings assigned by the institution or external rating entity, at their own discretion, if the available information on credit risk warrants it. The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (with the agencies) have jointly published the agreement on the standardization and application of securities by custodian institutions. These guidelines replace the 2004-25 OCC, Uniform Agreement on the Classification of Securities (2004), replacing the agencies` revised investment quality standards for credit quality instead of credit ratings as a basis for securities classification. Any questions regarding this securities classification agreement are addressed to Charles Williams, Risk Specialist, Balance Sheet Management Group, at (202) 649-6294, or williamscc@occ.treas.gov; Kerri Corn, Director, Market Risk Division, (202) 649-6398 or kerri.corn@occ.treas.gov or (202) 649-6360. As this agreement focuses on the application of investment degree classification standards, the 2004 agreement guidelines for the processing and classification of fair value declines, based on credit ratings, are removed. The agreement does not address the definition of appropriate accounting, for example. B, classification, valuation and other temporary depreciation of securities. Securities accounting is covered within the generally accepted accounting standards in the United States in ASC 320, “Investments – Debt and Equity Securities,” ASC 325, “Investments – Other” and in the instructions and gloss of the Call Report. For questions regarding securities accounting, please contact the OCC Senior Accountant`s office at (202) 649-6280. Sections 939 and 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act instruct agencies to remove any reference to credit ratings or credit rating requirements from agency regulations and replace ratings with appropriate credit quality standards.