A new set of accounting guidelines was recently released by The Office of the Comptroller of the Currency for those financial institutions complying with Basel III.
The information was contained in the 2013 version of the Bank Accounting Advisory Series produced by the Office of the Chief Accountant.
Lending institutions in the United States have been readying themselves to meet the capital requirements specified in this regulatory regime since the final guidelines for the United States were released earlier this year. The Federal Reserve, and OCC and The Federal Deposit Insurance Corporation all contributed to the U.S. interpretation of the regulatory regime.
The OCC stated that the guidelines were designed to help financial services industry participants harness appropriate accounting methods, according to American Banker. The information provided by the government agency pertained to matters such as the proper accountancy approach for stock sales and investments in debt-based financial instruments.
Lending institutions can also consult the guidance provided by the OCC in the event that they have questions regarding how to make allowances for losses they incur, how to restructure debt that has not had the strongest payment history and also the proper way to account for a transfer of servicing rights under Basel III, the media outlet reported.
◦ Asset Liability Management
◦ Portfolio Risk
◦ Sensitivities & Hedging
◦ Stress Testing & Scenario Analysis