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This section provides an overview of recently released regulations and other items of interest, arranged in reverse chronological order. Press Release (PR) and Financial Institution Letter (FIL) designations are included so the reader can obtain more information.
| ACRONYMS and DEFINITIONS | |
|---|---|
| CFPB | Consumer Financial Protection Bureau |
| FDIC | Federal Deposit Insurance Corporation |
| FFIEC | Federal Financial Institutions Examination Council |
| FRB | Federal Reserve Board |
| NCUA | National Credit Union Administration |
| OCC | Office of the Comptroller of the Currency |
| Federal bank regulatory agencies | FDIC, FRB, and OCC |
| Federal financial institution regulatory agencies | CFPB, FDIC, FRB, NCUA, and OCC |
Regulatory and Supervisory Roundup
| Subject | Summary |
|---|---|
| New Appraisal Threshold for Residential Real Estate Loans (FIL-53-2019, PR-83-2019, September 27, 2019) | The federal bank regulatory agencies jointly issued an amended appraisal rule that increases the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000. For transactions exempted by the $400,000 threshold, an evaluation is required. Additionally, the appraisal rule incorporates the appraisal exemption for rural residential properties provided by the Economic Growth, Regulatory Relief, and Consumer Protection Act and similarly requires evaluations for these exempt transactions. The appraisal rule also requires appraisals for federally related transactions to be subject to appropriate review for compliance with Uniform Standards of Professional Appraisal Practice.
See https://www.fdic.gov/news/news/financial/2019/fil19053.html |
| Listening Sessions on Supervisory Appeals and Dispute Resolution Processes (FIL-52-2019, September 24, 2019) | The FDIC hosted a series of listening sessions regarding its supervisory appeals and dispute resolution process in the fourth quarter of 2019. The sessions offered an opportunity for bankers and other interested parties to provide individual input and recommendations regarding these processes, as well as to provide individual suggestions regarding the role of the Office of the Ombudsman in assisting in resolving disagreements. See https://www.fdic.gov/news/news/financial/2019/fil19052.html |
| Supplemental Questions and Answers Related to the FDIC Statement of Policy on Applications for Deposit Insurance (FIL-51-2019, September 23, 2019) | The FDIC issued Supplemental Questions and Answers (Q&As) to aid organizing groups in developing applications for deposit insurance. The Supplemental Q&As contains relevant information regarding application and publication requirements, such as not needing to identify a main office address at the time of submission, but having to identify a proposed chief executive officer, and is available at https://www.fdic.gov/news/inactive-financial-institution-letters/2019/fil19051a.pdf. See https://www.fdic.gov/news/inactive-financial-institution-letters/2019/fil19051.html |
| FDIC’s Office of the Ombudsman Publishes 2018 Annual Report (PR-81-2019, September 23, 2019) | The FDIC’s Office of the Ombudsman published its 2018 Annual Report outlining the office’s structure, outreach activities, and goals. The annual report seeks to promote transparency relative to the FDIC’s activities and is available at https://www.fdic.gov/about/ombudsman/2018-oo-annual-report.pdf. See https://www.fdic.gov/news/news/press/2019/pr19081.html |
| Changes to the FDIC’s Post-Examination Survey Process (FIL-50-2019, September 19, 2019) | The FDIC is notifying FDIC-supervised financial institutions that, effective October 1, 2019, the Office of the Ombudsman will administer the Post-Examination Survey Process. The Office of the Ombudsman is independent of the supervisory process, reports directly to the FDIC Chairman’s Office, and is a confidential resource for banks. The change is designed to promote additional candid feedback, improve response rates, and further ensure confidentiality of survey responses. See https://www.fdic.gov/news/news/financial/2019/fil19050.html |
| FDIC Finalizes Rules to Simplify Capital Calculation for Qualifying Community Banking Organizations and to Early Adopt Certain Related Simplifications to the Regulatory Capital Requirements (PR-80-2019, September 17, 2019) | The FDIC finalized a rule that introduces an optional simplified measure of capital adequacy for qualifying community banking organizations as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The Community Bank Leverage Ratio (CBLR) framework, which will be available for banks to use in their March 31, 2020 Call Report, is designed to reduce burden by removing the requirements for calculating and reporting risk- based capital ratios for qualifying community banking organizations that opt into the framework. To qualify for the CBLR framework, a community banking organization must have a tier 1 leverage ratio greater than 9 percent, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities. The FDIC also finalized a rule that permits non-advanced approaches banking organizations to use the simpler regulatory capital requirements for mortgage-servicing assets, certain deferred tax assets arising from temporary differences, investments in the capital of unconsolidated financial institutions, and minority interest when measuring their tier 1 capital as of January 1, 2020. See https://www.fdic.gov/news/news/press/2019/pr19080.html |
| FDIC Releases Results of Summary of Deposits Annual Survey (PR-79-2019, September 13, 2019) | The FDIC released the results of its annual survey of branch office deposits for FDIC-insured institutions. The results provide deposit totals for each of the more than 86,000 domestic offices operated by more than 5,300 FDIC-insured commercial and savings banks, savings associations, and U.S. branches of foreign banks. The latest Summary of Deposits is as of June 30, 2019, and is available at https://www5.fdic.gov/sod/sodMarketBank.asp?barItem=2. See https://www.fdic.gov/news/news/press/2019/pr19079.html |
| Request for Comments on Interest Rate Restrictions Applicable to Institutions That Are Less Than Well Capitalized (FIL-49-2019, September 9, 2019; PR-72-2019, August 20, 2019) | The FDIC issued a notice of proposed rulemaking related to interest rate restrictions that apply to less than well-capitalized insured depository institutions. Under the proposed rule, the FDIC would amend the methodology for calculating the national rate and national rate cap for specific deposit products to provide a more balanced, reflective, and dynamic national rate cap. The proposed rule would also simplify the current local rate cap calculation. Additionally, the proposed rule is seeking comment on alternative approaches to setting the national rate caps. Comments will be accepted until November 4, 2019. See https://www.fdic.gov/news/news/financial/2019/fil19049.html |
| Interagency Webinar: Applying Model Risk Management to Current Expected Credit Losses (CECL) Models at Large Banks (FIL-48-2019, August 27, 2019) | The federal bank regulatory agencies jointly hosted a webinar on September 3, 2019, to clarify the use of model risk management by large institutions for model-based processes employed in their CECL frameworks. Webinar materials were archived for future viewing. See https://www.fdic.gov/news/news/financial/2019/fil19048.html |
| Risk-Focused, Forward-Looking Safety and Soundness Supervision (FIL-47-2019, August 27, 2019) | The FDIC is updating its Risk Management Manual of Examination Policies to incorporate a new section titled “Risk Focused, Forward-Looking Safety and Soundness Supervision.” The section describes the FDIC’s long-standing philosophy and methods for supervising institutions by focusing on the areas presenting the greatest risks and is included in the new Part VI of the manual titled “Appendix: Examination Processes and Tools.” See https://www.fdic.gov/news/news/financial/2019/fil19047.html |
| Final Rule to Amend 12 C.F.R. Part 370, “Recordkeeping for Timely Deposit Insurance Determination” (FIL-46-2019, August 26, 2019) | The Board of Directors of the FDIC approved a final rule to amend 12 C.F.R. Part 370, “Recordkeeping for Timely Deposit Insurance Determination.” The rule makes certain substantive revisions to simplify the process for making insurance determinations in the event a bank is placed into receivership by (1) better aligning the benefits and burdens of the rule, (2) clarifying the rule’s requirements, and (3) making technical corrections. The rule takes effect October 1, 2019. See https://www.fdic.gov/news/news/financial/2019/fil19046.html |
| FDIC Issues Proposed Rule on Certain Assessment Credits (PR-74-2019, August 20, 2019) | The FDIC approved a notice of proposed rulemaking to amend the deposit insurance assessment regulations that govern the use of small bank assessment credits and one-time assessment credits. The proposal would require the FDIC to automatically apply small bank credits to quarterly assessments when the reserve ratio is at least 1.35%, rather than 1.38%, as required under current regulation. After applying credits for eight quarters, the FDIC would remit the nominal value of any remaining small bank credits. The proposed changes intend to make the application of small bank credits to quarterly assessments more predictable for insured depository institutions with these credits. Comments on the proposed rule will be accepted until September 30, 2019. See https://www.fdic.gov/news/news/press/2019/pr19074.html |
| FDIC Approves Interagency Final Rule to Simplify and Tailor the “Volcker Rule” (PR-73-2019, August 20, 2019) | The Board of Directors of the FDIC approved an interagency final rule to simplify and tailor requirements relating to Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly known as the “Volcker Rule.” The Volcker Rule generally prohibits banking entities from engaging in proprietary trading and from owning or controlling hedge funds or private equity funds. Among other amendments, the final rule tailors compliance requirements based on the size of a firm’s trading assets and liabilities and simplifies the trading activity information banking entities are required to provide. The rule’s effective date is January 1, 2020, with a compliance date of January 1, 2021. See https://www.fdic.gov/news/news/press/2019/pr19073.html |
| FDIC Annual Publication Examines Potential Credit and Market Risks (PR-70-2019, July 30, 2019) | The FDIC published its 2019 Risk Review, an annual publication highlighting emerging risks and exposures in the banking system. This issue provides a summary of conditions in the U.S. economy, financial markets, and banking industry. It also presents key risks to banks in the categories of credit risk (agriculture, commercial real estate, energy, housing, leveraged lending and corporate debt, and nonbank lending) and market risk (interest rate risk, deposit competition, and liquidity). The 2019 Risk Review is available at https://www.fdic.gov/bank/analytical/risk-review/index.html. See https://www.fdic.gov/news/news/press/2019/pr19070.html |
| Agencies Complete Resolution Plan Evaluations and Extend Deadline for Certain Firms (PR-69-2019, July 26, 2019) | The FRB and FDIC announced several resolution plan actions, including completing their evaluations of the 2018 resolution plans for 82 foreign and 15 domestic banks and extending the deadline for the next resolution plans from those firms. The extensions will give the banks additional time to prepare their plans in light of resolution plan rule changes proposed by the agencies in April 2019. See https://www.fdic.gov/news/news/press/2019/pr19069.html |
| FDIC Announces Meeting of Advisory Committee on Community Banking (PR-67-2019, July 24, 2019) | The FDIC held a meeting of the Advisory Committee on Community Banking on July 30, 2019. FDIC senior staff provided updates on various supervisory policy issues and the FDIC Subcommittee on Supervision Modernization, as well as briefed Committee members on minority and community development financial institutions, Money Smart financial education materials, and de novo institutions. In addition, the FDIC Ombudsman provided a briefing to the Committee, and a panel discussed FDIC and U.S. Small Business Administration collaboration efforts. See https://www.fdic.gov/news/news/press/2019/pr19067.html |
| Agencies Release Public Sections of Resolution Plans for Eight Large Banks (PR-66-2019, July 23, 2019) | The FRB and FDIC released the public sections of eight large domestic firms’ resolution plans. Resolution plans are divided into public and confidential sections. To foster transparency, the agencies have required each firm’s public section to summarize certain elements of the resolution plan. The public sections of the plans are available on the FDIC’s and FRB’s websites. See https://www.fdic.gov/news/news/press/2019/pr19066.html |
| Interagency Statement on Risk-Focused Bank Secrecy/Anti-Money Laundering Supervision (FIL-43-2019, PR-65-2019, July 22, 2019) | The federal bank regulatory agencies, the NCUA, and the Financial Crimes Enforcement Network issued a joint statement to clarify their risk-focused approach to examinations of Bank Secrecy Act/anti-money laundering (BSA/AML) compliance programs. The statement is intended to improve transparency into the risk-focused approach used for planning and performing BSA/AML examinations, and does not establish new requirements. See https://www.fdic.gov/news/news/financial/2019/fil19043.html |
| Interagency Webinar: Revisions to the Framework for Margin Requirements for Non-Centrally Cleared Derivatives (FIL-42-2019, July 22, 2019) | The federal bank regulatory agencies jointly hosted a webinar on July 24, 2019, on revisions to the framework for margin requirements for non-centrally cleared derivatives that have been adopted by the Basel Committee on Bank Supervision and the International Organization of Securities Commissions. The webinar described legal documentation standards, custodial readiness, and testing for systems related to the $50 million initial margin threshold. See https://www.fdic.gov/news/news/financial/2019/fil19042.html |
| Federal Bank Regulatory Agencies Announce Coordination of Reviews for Certain Foreign Funds Under Volcker Rule (PR-64-2019, July 17, 2019) | The federal bank regulatory agencies announced that they will not take action related to restrictions under the Volcker Rule for certain foreign funds for an additional two years. The agencies have consulted with the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission regarding this matter. The Volcker Rule generally restricts banking entities from engaging in proprietary trading and from owning, sponsoring, or having certain relationships with hedge funds or private equity funds, known as “covered funds.” Certain foreign funds are excluded from the definition of covered funds under the agencies’ implementing regulations, but these foreign funds could become subject to the Volcker Rule because of governance arrangements or investments by foreign banking entities. See https://www.fdic.gov/news/news/press/2019/pr19064.html |
| FDIC Board Finalizes Changes to Recordkeeping Requirements for Deposit Insurance Determinations (PR-63-2019, July 16, 2019) | The FDIC Board approved amendments to two rules to simplify the process for making insurance determinations in the event a bank is placed into receivership. Part 370 of the FDIC’s Rules and Regulations Recordkeeping for Timely Deposit Insurance Determination has been amended to allow for an optional one-year extension of the rule’s original compliance deadline of April 1, 2020. Other more technical changes are intended to address issues that became apparent to FDIC staff as they worked with institutions since Part 370 was first adopted in November 2016. Amendments to Part 330 of the FDIC’s Rules and Regulations will expand the types of evidence beyond signature cards to be considered when determining whether joint accounts qualify for increased deposit insurance coverage. See https://www.fdic.gov/news/news/press/2019/pr19063.html |
| Regulatory Capital Rules: Treatment of Land Development Loans for the Definition of High Volatility Commercial Real Estate Exposure (FIL-39-2019, PR-62-2019, July 12, 2019) | As required by Section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), the federal bank regulatory agencies propose to revise the definition of high volatility commercial real estate (HVCRE). The proposal expands on the notice of proposed rulemaking issued on September 28, 2018, to clarify that loans that solely finance the development of land for one- to four-family residential properties would meet the definition of HVCRE under the agencies’ capital rules, unless the loan qualifies for another exemption. See https://www.fdic.gov/news/news/financial/2019/fil19039.html |
| FDIC Releases Initial Sections of its Applications Procedures Manual (FIL-38-2019, July 10, 2019) | The FDIC posted sections of its Applications Procedures Manual to its website to provide greater transparency regarding the FDIC’s internal processes. The manual provides directions for professional staff assigned to review and process applications, notices, and other requests to the FDIC. This is the first in a series of releases that will comprise the complete manual. Each subsequent release will include multiple sections governing specific filing types. Additional resources related to the filing process are available on the FDIC’s website. FDIC insured institutions and other interested parties may subscribe to receive notice of future releases and updates to the manual at https://service.govdelivery.com/accounts/USFDIC/subscriber/new. See https://www.fdic.gov/news/news/financial/2019/fil19038.html |
| Agencies Adopt Final Rule to Exclude Community Banks from the Volcker Rule (PR-61-2019, July 9, 2019) | The FDIC, FRB, OCC, U.S. Securities and Exchange Commission, and Commodity Futures Trading Commission have adopted a final rule to exclude community banks from the Volcker Rule consistent with EGRRCPA. The Volcker Rule generally restricts banking entities from engaging in proprietary trading and from owning, sponsoring, or having certain relationships with hedge funds or private equity funds. Under the final rule, community banks with $10 billion or less in total consolidated assets, and total trading assets and liabilities of 5 percent or less of total consolidated assets, will be excluded from the Volcker Rule. The final rule also permits a hedge fund or private equity fund, under certain circumstances, to share the same name or a variation of the same name with an investment adviser as long as the adviser is not an insured depository institution, a company that controls an insured depository institution, or a bank holding company. The final rule is effective on July 22, 2019. See https://www.fdic.gov/news/news/press/2019/pr19061.html |
| Simplification to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (FIL-37-2019, PR-60-2019, July 9, 2019) | The federal bank regulatory agencies have adopted a final rule that simplifies several requirements of the agencies’ regulatory capital rules for non-advanced approaches banking organizations, which generally are firms with less than $250 billion in total consolidated assets and less than $10 billion in total foreign exposure. The final rule will simplify the capital treatment for mortgage servicing assets, certain deferred tax assets, investments in the capital instruments of unconsolidated financial institutions, and minority interest. The final rule will also allow bank holding companies and savings and loan holding companies to redeem common stock without prior approval, unless required. The agencies indicated their intent to address these matters in their joint report to Congress in 2017 pursuant to the Economic Growth and Regulatory Paperwork Reduction Act. The final rule will be effective as of April 1, 2020, for the amendments to simplify capital rules, and as of October 1, 2019, for the revisions to the pre-approval requirements for the redemption of common stock and other technical amendments. See https://www.fdic.gov/news/news/financial/2019/fil19037.html |
| Reduced Reporting in Call Reports for Covered Depository Institutions (FIL-36-2019, FIL-35-2019, July 5, 2019; PR-51-2019, June 17, 2019) | The federal bank regulatory agencies have adopted a final rule to implement Section 205 of the EGRRCPA to allow for reduced reporting on reports of condition by insured depository institutions with less than $5 billion in total assets that meet other criteria. The final rule expands eligibility to file FFIEC 051 and reduces the reporting frequency for a number of existing items from quarterly to semiannually. The applicable revisions to the FFIEC 051 Call Report will take effect on September 30, 2019, subject to approval by the U.S. Office of Management and Budget. See https://www.fdic.gov/news/inactive-financial-institution-letters/2019/fil19036.html |
| FDIC Hosts Roundtable on Collaborations with Minority Depository Institutions (PR-57-2019, June 27, 2019) | The FDIC hosted a roundtable on June 27, 2019, with large FDIC-supervised financial institutions and minority depository institutions (MDIs) to foster collaboration in support of the continued vibrancy of MDIs and their communities. The FDIC intends to pursue initiatives to further promote and support collaborative relationships between non-MDIs and MDIs, such as additional roundtables, clarification on how these relationships receive consideration under the Community Reinvestment Act, raising awareness among insured institutions, and targeted training for agency examination staff. See https://www.fdic.gov/news/news/press/2019/pr19057.html |
| Webinar: Building Collaboration Between Financial Institutions and Law Enforcement to Prevent and Address Elder Abuse (FIL-34-2019, PR-55-2019, June 26, 2019) | The FDIC and the CFPB co-hosted a webinar on July 25, 2019, to outline strategies to prevent and address elder financial abuse. The webinar focused on the benefits of appropriate collaboration between financial institutions and law enforcement and provided financial institutions with resources and strategies to develop strategic relationships. The webinar discussed the unique challenges in detecting and preventing elder financial abuse and how Suspicious Activity Report filings can be used to combat it. The webinar also covered Money Smart for Older Adults, a free resource developed by the FDIC and CFPB. See https://www.fdic.gov/news/news/financial/2019/fil19034.html |
| FDIC Hosts Interagency Conference Focusing on Minority Depository Institutions (PR-54-2019, June 25, 2019) | The FDIC hosted the 2019 Interagency Minority Depository Institution and CDFI Bank Conference from June 25–26, 2019, in partnership with the FRB and OCC. The biennial conference for FDIC-insured MDIs and Community Development Financial Institution banks discussed innovation, supervision, cybersecurity, and federal programs supporting MDIs. The conference also announced the release of a new research study entitled, Minority Depository Institutions: Structure, Performance, and Social Impact. More information on MDIs can be found at https://www.fdic.gov/mdi/. See https://www.fdic.gov/news/news/press/2019/pr19054.html |
| Agencies Issue List of Distressed or Underserved Nonmetropolitan Middle- Income Geographies (PR-52-2019, June 17, 2019) | The federal bank regulatory agencies announced the availability of the 2019 list of distressed and underserved nonmetropolitan middle-income geographies, where revitalization or stabilization activities are eligible to receive Community Reinvestment Act consideration under the community development definition. See https://www.fdic.gov/news/news/press/2019/pr19052.html |
| FDIC Cautions Customers That FDIConnect.com is Not Affiliated With a Government Agency and Should Not Be Confused With FDICconnect.gov
(PR-50-2019, June 13, 2019) |
The FDIC cautions bank customers on the potential for confusion between FDIConnect.com and the FDIC-run FDICconnect.gov. FDIConnect.com advertises itself as a consumer-focused provider of FDIC pass-through insurance for bank deposits, but it is not affiliated with the FDIC. FDICconnect.gov is a secure electronic portal for the FDIC to connect with financial institutions – not with individual bank customers. The FDIC recommends that bank customers confirm a financial institution is FDIC-insured before doing business with that institution. Customers may use the FDIC’s BankFind database or call the FDIC toll-free at 1-877-275-3342 to check whether a specific bank or savings association is FDIC-insured. https://www.fdic.gov/news/news/press/2019/pr19050.html |
| FDIC Consumer Compliance Supervisory Highlights (FIL-31-2019, PR-49-2019, June 13, 2019) | The FDIC issued the new Consumer Compliance Supervisory Highlights publication that offers a high-level overview of consumer compliance issues identified through the FDIC’s supervision of state non-member banks and thrifts in 2018. The issue includes resources and information to help financial institutions effectively manage consumer compliance responsibilities as well as most frequently cited violations and enforcement actions. The publication is available on the FDIC’s website at https://www.fdic.gov/regulations/examinations/consumercomplsupervisoryhighlights.pdf. See https://www.fdic.gov/news/news/financial/2019/fil19031.html |
| Request for Information on FDIC Technical Assistance Offerings and Delivery (FIL-29-2019, June 3, 2019) | The FDIC is seeking feedback on its methods and efforts to provide technical assistance. The FDIC uses various forms of technical assistance including videos, the Directors’ Resource Center, director/banker colleges, teleconferences and webinars, Community Bank Resource Kits, regional compliance newsletters, and individual assistance to institutions. The FDIC requests information on additional steps that could support effective management and operation of FDIC-supervised institutions through technical assistance and collaboration on safety and soundness and consumer compliance matters. Comments will be accepted until August 6, 2019. See https://www.fdic.gov/news/news/financial/2019/fil19029.html |
| Agencies Issue Final Rule Regarding the Treatment of Certain Municipal Obligations as High-Quality Liquid Assets (PR-44-2019, May 30, 2019) | As required by the EGRRCPA, the federal bank regulatory agencies issued a final rule that will adopt without change the agencies’ interim final rule issued in August 2018. The final rule amends their liquidity coverage ratio rules to treat eligible municipal obligations as high- quality liquid assets if those obligations are liquid and readily marketable and investment grade. The final rule is effective on July 5, 2019. See https://www.fdic.gov/news/news/press/2019/pr19044.html |
| Agencies Issue Host State Loan-to- Deposit Ratios (PR-41-2019, May 28, 2019) | The federal bank regulatory agencies issued the host state loan-to-deposit ratios they will use to determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. In general, Section 109 prohibits a bank, or a branch controlled by an out-of-state bank holding company, from establishing, acquiring, or operating a branch or branches outside its home state primarily for the purpose of deposit production. See https://www.fdic.gov/news/news/press/2019/pr19041.html |
| Summary of Deposits Survey: Filing for June 30, 2019 (FIL-28-2019, May 28, 2019) | The Summary of Deposits is the annual survey of branch office deposits as of June 30, 2019, for all FDIC-insured institutions, including insured U.S. branches of foreign banks. All institutions with a branch office are required to submit the survey; institutions with only a main office are exempt. No extensions will be granted, and all survey filings are required by July 31, 2019. See https://www.fdic.gov/news/news/financial/2019/fil19028.html |
| Banker Teleconference Series: Private Flood Insurance Rule (FIL-27-2019, May 20, 2019) | The FDIC conducted an interagency webinar on June 18, 2019, on the interagency rule on private flood insurance that goes into effect on July 1, 2019. Staff from the federal bank regulatory agencies, the NCUA, and the Farm Credit Administration discussed various aspects of private flood insurance and preparations to comply with the rule. See https://www.fdic.gov/news/news/financial/2019/fil19027.html |
| Financial Institution Diversity Video (FIL-26-2019, May 20, 2019) | The FDIC prepared a video describing the agency’s Financial Institution Diversity Program; the video is available on the FDIC’s YouTube Channel. Financial institutions regulated by the FDIC are encouraged to conduct annual self-assessments of their diversity policies and practices as outlined in the Interagency Policy Statement Establishing Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies. See https://www.fdic.gov/news/news/financial/2019/fil19026.html |
| Proposed Revisions to the Consolidated Reports of Income and Condition (Call Report) for the Proposed Community Bank Leverage Ratio (FIL-24-2019, May 6, 2019; FIL-25-2019, May 7, 2019) | On April 19, 2019, the federal bank regulatory agencies published in the Federal Register proposed changes to all three versions of the Call Report to introduce a new Community Bank Leverage Ratio (CBLR) consistent with Section 201 of the EGRRCPA. This proposal would align the Call Report with the agencies’ proposed rule that would provide a simplified alternative measure of capital adequacy for certain community banks with less than $10 billion in total consolidated assets. The proposed revisions would also implement reporting changes consistent with the FDIC’s proposed rule to amend deposit insurance assessment regulations to apply the CBLR framework. See https://www.fdic.gov/news/inactive-financial-institution-letters/2019/fil19025.html |
| Agencies Seek Comment on Revisions to the Supplementary Leverage Ratio as Required by Economic Growth, Regulatory Relief, and Consumer Protection Act (PR-36-2019, April 18, 2019) | The federal bank regulatory agencies request comment on a proposal to modify a capital requirement for United States banking organizations, as required by the EGRRCPA. Under the proposal, certain large or internationally active banking organizations predominately engaged in custody, safekeeping, and asset servicing activities, may exclude qualifying deposits at central banks from their supplementary leverage ratio. Based on data available at the time of the proposal, the modification would only apply to The Bank of New York Mellon, Northern Trust Corporation, and State Street Corporation, together with their depository institution subsidiaries. See https://www.fdic.gov/news/news/press/2019/pr19036.html |
| Agencies Invite Comment on Modifications to Resolution Plan Requirements; Proposal Keeps Existing Requirements for Largest Firms and Reduces Requirements for Firms with Less Risk (PR-35-2019, April 16, 2019) | The FDIC and FRB invite public comments on a proposal modifying their resolution plan requirements for large banking firms. The proposal would affect domestic and foreign banks with more than $100 billion in total consolidated assets and establish a graduated set of resolution planning requirements that depend on the level of risk a firm poses to the financial system. See https://www.fdic.gov/news/news/press/2019/pr19035.html |
| FDIC Seeks Comment on New Approaches to Insured Depository Institution Resolution Planning (PR-34-2019, April 16, 2019) | The FDIC Board approved an Advanced Notice of Proposed Rulemaking (ANPR) seeking comment on ways to tailor and improve the agency’s rule requiring certain insured depository institutions (IDI) to submit resolution plans. The ANPR proposes to revise the $50 billion threshold in the existing rule to set tiered requirements based on size, complexity, or other characteristics of the IDI. The FDIC is also seeking comment on ways to streamline submission of plans for larger, more complex firms, and whether to replace submissions with periodic engagement and testing for smaller, less complex firms. The next round of submissions under the rule will be delayed until the rulemaking process has been completed. See https://www.fdic.gov/news/news/press/2019/pr19034.html |
| U.S., European Banking Union, and UK Officials Meet for Planned Coordination Exercise on Cross-Border Resolution Planning (PR-33-2019, April 9, 2019) | Senior officials representing resolution, regulatory and supervisory authorities in the United States, the United Kingdom, and the European Banking Union held a meeting on April 13, 2019, as part of a series of planned exercises to enhance understanding of one another’s resolution regimes for global systemically important banks and strengthen coordination on cross-border resolution. The exercise was planned to coincide with the annual international meetings in Washington, D.C. sponsored by the World Bank and International Monetary Fund. See https://www.fdic.gov/news/news/press/2019/pr19033.html |
| FDIC Podcast Chronicles Causes, Responses to Financial Crisis (PR-31-2019, April 4, 2019) | The FDIC released a series of podcasts featuring discussions about Crisis and Response: An FDIC History, 2008 – 2013, the agency’s study of the banking and financial crisis. The podcast series is organized into seven episodes: an introductory episode that highlights the study’s review and one episode for each of the study’s six chapters. The podcasts and The Crisis and Response study are available on the FDIC’s website at https://www.fdic.gov/bank/historical/crisis/index.html. Copies of the study can be ordered from the FDIC Online Catalog. https://www.fdic.gov/news/news/press/2019/pr19031.html |
| New Accounting Standard on Credit Losses: Frequently Asked Questions (FIL-20-2019, April 3, 2019) | The federal financial institution regulatory agencies are issuing Frequently Asked Questions on the New Accounting Standard on Financial Instruments – Credit Losses to assist institutions and examiners. The new standards take effect in 2020, 2021, or 2022, depending on the institution’s characteristics. The frequently asked questions (FAQs) focus on the application of the current expected credit losses methodology and related supervisory expectations and regulatory reporting guidance. This will replace the FAQs attached to FIL-41-2017. See https://www.fdic.gov/news/news/financial/2019/fil19020.html |
| Technology Service Provider Contracts (FIL-19-2019, April 2, 2019) | This document describes examiner observations about gaps in financial institutions’ contracts with technology service providers that may require financial institutions to take additional steps to manage their business continuity and incident response. See https://www.fdic.gov/news/news/financial/2019/fil19019.html |
| Current Expected Credit Losses (CECL) Webinar (FIL-17-2019, April 2, 2019) | The federal financial institution regulatory agencies, in conjunction with the Financial Accounting Standards Board, the U.S. Securities and Exchange Commission, and the Conference of State Bank Supervisors jointly hosted an “Ask the Regulators: CECL Webinar: Weighted-Average Remaining Maturity (WARM) Method.” Webinar materials are available at https://www.webcaster4.com/Webcast/page/583/29509. See https://www.fdic.gov/news/news/financial/2019/fil19017.html |
| Home Mortgage Disclosure Act (FIL-16-2019, April 1, 2019) | The FFIEC has issued A Guide to HMDA Reporting: Getting It Right! This guide covers data collected in 2019 and reported in 2020, along with updated interagency HMDA examination procedures. See https://www.fdic.gov/news/news/financial/2019/fil19016.html |
| Regulatory Capital Rule: Regulatory Capital Treatment for Investments in Certain Unsecured Debt Instruments of Globally Systemically Important U.S. Bank Holding Companies, Certain Intermediate Holding Companies, and Globally Systemically Important Foreign Banking Organizations (FIL-18-2019, PR-30-2019, April 2, 2019) | The federal bank regulatory agencies have jointly issued a Notice of Proposed Rulemaking to amend the capital rule to require advanced approaches banking organizations to deduct from regulatory capital certain investments in unsecured debt instruments issued by Global Systemically Important Banks and certain of their subsidiaries for the purpose of meeting minimum Long Term Debt or Total Loss Absorbing Capacity (TLAC) requirements. The proposal is intended to limit both interconnectedness within the financial system and systemic risk. The proposal would require additional capital to be held against substantial holdings of TLAC debt. See https://www.fdic.gov/news/news/financial/2019/fil19018.html |
| FDIC Hosts Webinar for Financial Capability Month (PR-29-2019, April 1, 2019) | The FDIC hosted a webinar on April 17, 2019, to help organizations learn how to use Money Smart tools. The webinar also explained the benefits of joining the FDIC’s Money Smart Alliance, a free resource to help organizations learn new approaches and strategies on how to use Money Smart tools. See https://www.fdic.gov/news/news/press/2019/pr19029.html |
| FDIC Hosts Fintech and the Future of Banking Conference in Arlington, Virginia (PR-28-2019, April 1, 2019) | The FDIC and Duke University’s Fuqua School of Business and Innovation and Entrepreneurship Initiative hosted the Fintech and the Future of Banking conference on April 24, 2019. The conference leveraged research and experience by bringing together leaders in academia, policy, and industry to discuss the impact Fintech and innovation have on how banks conduct business and consumers interact with financial institutions. Conference materials are available at https://www.fdic.gov/bank/analytical/fintech/index.html. See https://www.fdic.gov/news/news/press/2019/pr19028.html |
| FDIC Board Proposes Changes to Recordkeeping Requirements for Deposit Insurance Determinations (PR-26-2019, March 29, 2019) | The FDIC Board approved proposals to amend two rules to simplify the process for making insurance determinations in the event a bank is placed into receivership. The first proposal amends Part 370 of the FDIC’s regulations entitled, Recordkeeping for Timely Deposit Insurance Determinations, to address issues raised since the rule was approved in November 2016, and provide an optional one-year extension of the original compliance date of April 1, 2020. The second proposal amends Part 330 of the FDIC’s regulations to provide an alternate method to satisfy the signature card requirements for deposits held
in joint accounts. See https://www.fdic.gov/news/news/press/2019/pr19026.html |
| FDIC Announces Meeting of Advisory Committee on Community Banking (PR-21-2019, March 21, 2019) | The FDIC held a meeting of the Advisory Committee on Community Banking on March, 28, 2019, to discuss de novo institution efforts, community bank technical assistance efforts, the 2017 FDIC National Survey of Unbanked and Underbanked Households, and various supervisory policy issues. The meeting was open to the public and was webcast live. The agenda and a link to the webcast are available at https://www.fdic.gov/communitybanking/. See https://www.fdic.gov/news/news/press/2019/pr19021.html |
| Removal of the FDIC’s Part 350 Annual Disclosure Statement Requirement (FIL-14-2019, March 20, 2019) | A final rule rescinding and removing Part 350 of the FDIC’s regulations, entitled Disclosure of Financial and Other Information by FDIC Insured State Nonmember Banks, has been approved. Although this will not take effect until April 17, 2019, state nonmember banks and insured state-licensed branches of foreign banks need not prepare and make public disclosure statements containing financial data for 2018 and 2017. See https://www.fdic.gov/news/news/financial/2019/fil19014.html |
| Supervisory Insights Journal: Winter 2018 Issue Now Available (FIL-13-2019, PR-20-2019, March 20, 2019) |
The Winter 2018 issue of Supervisory Insights features an article that examines alternatives to the London Interbank Offered Rate (LIBOR), as well as planning considerations for a potential change in the use of LIBOR as a reference rate. The issue is available at https://www.fdic.gov/regulations/examinations/supervisory/insights/. https://www.fdic.gov/news/news/financial/2019/fil19013.html |
| Agencies Adopt Interim Final Rule to Facilitate Transfers of Legacy Swaps (PR-18-2019, March 15, 2019) | The Farm Credit Administration, the Federal Housing Finance Agency, and the federal bank regulatory agencies have enacted interim final rules to ensure that qualifying swaps may be transferred from a United Kingdom entity to an affiliate in the European Union or the United States without triggering new margin requirements. The final rule is effective on March 19, 2019. See https://www.fdic.gov/news/news/press/2019/pr19018.html |
| Agencies Announce Two Public Meetings on Merger of BB&T and SunTrust (PR-17-2019, March 14, 2019) | The FDIC and the FRB jointly held two public meetings on April 25, 2019, and May 3, 2019, on the proposed merger of BB&T Corporation, Winston-Salem, North Carolina, with SunTrust Banks, Inc., Atlanta, Georgia. The meetings collected information relating to the convenience and needs of the community to be served, the institutions’ performance under the Community Reinvestment Act, and other factors relevant to the merger applications of SunTrust Bank with and into Branch Banking and Trust Company. See https://www.fdic.gov/news/news/press/2019/pr19017.html |
| Revisions to the Consolidated Reports of Condition and Income and Other Regulatory Reports (FIL-10-2019, March 6, 2019; FIL-12-2019, March 8, 2019) | The federal bank regulatory agencies have finalized revisions to the Consolidated Reports of Condition and Income (Call Report) and certain other FFIEC reports to implement the agencies’ recent revisions to the regulatory capital rules for the current expected credit losses methodology under the Financial Accounting Standards Board’s Accounting Standards Update 2016-13. Other revisions to these reports result from the
EGRRCPA and relate to the reporting of high volatility commercial real estate exposures and reciprocal deposits. See https://www.fdic.gov/news/inactive-financial-institution-letters/2019/fil19012.html |
| FDIC’s Subcommittee on Supervision Modernization for the Advisory Committee on Community Banking Holds its Inaugural Meeting (PR-16-2019, March 6, 2019) | The inaugural meeting of the FDIC’s Subcommittee on Supervision Modernization took place on March 5 – 6, 2019. The subcommittee was established to support the FDIC’s Advisory Committee on Community Banking by considering how the FDIC can leverage technology and refine processes to make the examination program more efficient, while managing and training a geographically dispersed workforce. The meeting consisted of an overview of the FDIC and its structure, a discussion of the current bank examination program, and a review of existing technology and data sources used to conduct examinations. See https://www.fdic.gov/news/news/press/2019/pr19016.html |
| FDIC Unveils New Resources During National Consumer Protection Week 2019 (PR-13-2019, March 4, 2019) | The FDIC unveiled new resources in observance of National Consumer Protection Week (March 3 – 9, 2019) to help consumers understand their rights and make well-informed decisions about money. Resources include an online Information and Support Center that allows consumers to check the status of inquiries or complaints they have made about a financial institution, and an FDIC Knowledge Center that provides answers to questions about banking and lending. The Information and Support Center can be accessed at https://ask.fdic.gov/fdicinformationandsupportcenter/s/ and the FDIC Knowledge Center can be accessed at https://ask.fdic.gov/fdicinformationandsupportcenter/s/public-information. See https://www.fdic.gov/news/news/press/2019/pr19013.html |
| Prepaid Accounts Rule: Interagency Consumer Compliance Examination Procedures (FIL-9-2019, February 22, 2019) | The FDIC adopted revised interagency examination procedures to incorporate the CFPB’s amendments to Regulation E and Regulation Z. The examination procedures may be helpful to financial institutions seeking to better understand how FDIC examiners will evaluate an institution’s compliance with these regulations. FDIC examiners will use the updated procedures effective April 1, 2019. See https://www.fdic.gov/news/news/financial/2019/fil19009.html |
| FDIC Encourages Consumers to Set Financial Goals and Learn More About Options for Saving (PR-11-2019, February 22, 2019) | The FDIC encourages consumers to use America Saves Week (February 25 – March 2, 2019) as an opportunity to evaluate their short- and long-term financial goals and learn more about how banks can help achieve these goals. The FDIC offers free financial education resources to consumers, financial institutions, and other organizations interested in supporting savings. Information about America Saves Week and savings-related resources is available at https://www.fdic.gov/deposit/deposits/savings.html. See https://www.fdic.gov/news/news/press/2019/pr19011.html |