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

December 14, 2021

The Federal Reserve announces the implementation date, March 14, 2022, for the new ALD collateral requirements affecting in-scope institutions.

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 or
  • 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 had been in place for in-scope institutions will cease at implementation and only the new file format will be required. The submission process for all other institutions remains unchanged. Institutions that subsequently become in-scope will be contacted by their local Reserve Bank and allowed a period of time to transition to the new reporting format.

Additionally, the collateral margins tables for Discount Window lending and Payment System Risk purposes will be updated to reflect new margins for all institutions. The updated collateral margins tables can be found on the Collateral Valuation (Off-site) page of the Discount Window and Payment System Risk website.

For reference, the submission requirements for in-scope institutions can be found in the File Specifications section of the Pledging Collateral (Off-site) page on the Discount Window and Payment System Risk website. Contact your local Reserve Bank (Off-site) for additional information.

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