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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 |
|---|---|
| Agencies Extend Comment Period for Proposed Rulemaking on Enhanced Cyber Risk Management Standards (PR-03- 2017, January 13, 2017) | The federal bank regulatory agencies extended the comment period for the proposed rulemaking on enhanced cyber risk management standards for large and interconnected entities under their supervision, including service providers, until February 17, 2017. See https://fdic.gov/news/news/press/2017/pr17003.html |
| Community Banking Conference 2016 Highlights (FIL-3-2017, January 5, 2017) | The FDIC is providing highlights from the Community Banking Conference held April 6, 2016; the theme was Strategies for Long-Term Success. Four panels discussed the community banking model, regulatory developments, managing technology challenges, and ownership structure and succession planning. See https://www.fdic.gov/news/inactive-financial-institution-letters/2017/fil17003.html |
| Examination Cycle: Joint Final Rules on Expanded Examination Cycle for Certain Small Insured Depository Institutions and U.S. Branches and Agencies of Foreign Banks (FIL-2-2017, January 4, 2017) | The FDIC and the other federal financial institution regulatory agencies have adopted final rules permitting insured depository institutions with up to $1 billion in total assets, and that meet certain other criteria, to qualify for an 18-month on-site examination cycle. These rules allow the agencies to better focus supervisory resources on institutions which present capital, managerial, or other issues of supervisory concern while reducing regulatory burden on small, well-capitalized and well-managed institutions. See https://www.fdic.gov/news/inactive-financial-institution-letters/2017/fil17002.html |
| New Consolidated Reports of Condition and Income (Call Report) for Small Institutions (FIL-1-2017, January 4, 2017) | The FFIEC has approved the implementation of a new streamlined Call Report for eligible small institutions and other burden-reducing changes to other versions of the Call Report. The implementation of this new report is part of the FFIEC’s community bank Call Report burden-reduction initiative. The revised requirements will take effect March 31, 2017, subject to approval by the U.S. Office of Management and Budget. See https://www.fdic.gov/news/inactive-financial-institution-letters/2017/fil17001.html |
| FDIC Seeking Comment on New Handbook for De Novo Organizers Applying for Deposit Insurance (PR-110-2016 /FIL-81- 2016, December 22, 2016) | The FDIC is seeking comment on a handbook developed to facilitate the process of establishing new banks. The handbook provides an overview of the business considerations and statutory requirements that de novo organizers will face as they work to establish a new depository institution and apply for deposit insurance. The comment period ends February 20, 2017. See https://fdic.gov/news/news/financial/2016/fil16081.html |
| New Accounting Standard on Credit Losses: Frequently Asked Questions (FIL-79-2016, December 19, 2016) | The federal financial institution regulatory agencies are issuing a Frequently Asked Questions on the New Accounting Standard on Financial Instruments – Credit Losses. The document focuses on the application of the current expected credit losses methodology and related supervisory expectations. See https://www.fdic.gov/news/inactive-financial-institution-letters/2016/fil16079.html |
| Agencies Announce Determinations on October Resolution Plan Submissions of Five Systemically Important Domestic Banking Institutions (PR-109-2016, December 13, 2016) | The FDIC and FRB announced that Bank of America, Bank of New York Mellon, JP Morgan Chase, and State Street adequately remediated deficiencies in their 2015 resolution plans. The agencies also announced that Wells Fargo did not adequately remedy all of its deficiencies and will be subject to restrictions on certain activities until the deficiencies are remedied. See https://www.fdic.gov/news/news/press/2016/pr16109.html |
| Agencies Finalize Rule Expanding Number of Banks and Savings Associations Qualifying for 18-Month Examination Cycle (PR-107-2016, December 12, 2016) | The federal bank regulatory agencies issued interagency final rules that increase the number of small banks and savings associations eligible for an 18-month examination cycle rather than a 12-month cycle. The interagency rules are intended to reduce regulatory compliance costs for smaller institutions, while maintaining safety-and-soundness protections. These rules have been in effect since February 29, 2016, pursuant to the interim final rules previously adopted by the agencies. See https://www.fdic.gov/news/news/press/2016/pr16107.html |
| Banker Teleconference Series on Military Lending Act Regulations (FIL-78-2016, November 21, 2016) | The FDIC will co-host an interagency webinar on December 1, 2016 that will focus on the Military Lending Act (MLA) regulations and the related, recently released Interpretive Rule. See https://www.fdic.gov/news/inactive-financial-institution-letters/2016/fil16078.html |
| FDIC and SBA Announce Enhanced Money Smart for Small Business Curriculum (PR- 102-2016, November 16, 2016) | The FDIC and the U.S. Small Business Administration announced enhancements to Money Smart for Small Business, a resource that provides practical guidance for starting and managing a small business. The new modules focus on managing cash flow, planning for a healthy business, and helping learners to determine if owning a business is a good fit. See https://www.fdic.gov/news/news/press/2016/pr16102.html |
| FDIC Board Approves Final Rule on Deposit Account Recordkeeping Requirements to Facilitate Timely Access to Deposits in Large Bank Failures (PR-101-2016, November 15, 2016) | The FDIC approved a final rule establishing recordkeeping requirements for FDIC-insured institutions with a large number of deposit accounts to facilitate rapid payment of insured deposits to customers if the institutions were to fail. The rule applies to insured depository institutions with more than two million deposit accounts, and generally requires these institutions to maintain complete and accurate data on each depositor.
https://www.fdic.gov/news/news/press/2016/pr16101.html |
| CFPB Issues Final Rule for Prepaid Accounts Pursuant to Regulations E and Z (FIL-76-2016, November 8, 2016) | The CFPB issued a final rule establishing new consumer compliance requirements for prepaid accounts pursuant to Regulations E and Z. These requirements govern disclosures, limited liability and error resolution protections, credit features, and making account agreement information publicly available for prepaid accounts, among other provisions. See https://www.fdic.gov/news/news/financial/2016/fil16076.html |
| Final Guidance Issued on the Uniform Interagency Consumer Compliance Rating System (FIL- 75-2016, November 8, 2016) | The FFIEC is issuing final revisions to the Uniform Interagency Consumer Compliance Rating System to reflect the regulatory, supervisory, technological, and market changes that occurred in the years since the system was established. The revisions are designed to more fully align the rating system with the FFIEC Agencies’ current risk-based, tailored examination approaches. See https://www.fdic.gov/news/news/financial/2016/fil16075.html |
| FDIC Publishes Affordable Mortgage Lending Guide, Part II: State Housing Finance Agencies (FIL-73-2016/PR-99-2016, November 3, 2016) | The FDIC published a new guide to help community bankers learn more about grant and mortgage loan programs offered by State Housing Finance Agencies. The Affordable Mortgage Lending Guide, Part II: State Housing Finance Agencies describes programs offered by State Housing Finance Agencies across the country. See https://www.fdic.gov/news/news/financial/2016/fil16073.html |
| Agencies Request Comment on Proposed Private Flood Insurance Rule (PR-97-2016, October 31, 2016) | The FRB, OCC, FDIC, NCUA, and Farm Credit Administration (FCA) are requesting comment on a joint notice of proposed rulemaking to implement provisions of the Biggert-Waters Flood Insurance Reform Act that require regulated lending institutions to accept certain private flood insurance policies in addition to policies made available by the Federal Emergency Management Agency. The deadline for submitting comments is January 6, 2017. See https://www.fdic.gov/news/news/press/2016/pr16097.html |
| FDIC Offers Electronic Filing of Part 363 Annual Reports and Other Reports and Notices (FIL- 71-2016, October 25, 2016) | The FDIC has launched a program that provides insured depository institutions subject to Part 363 of the FDIC’s regulations the option to file the annual reports and other reports and notices required under Part 363 electronically through the FDIC’s secure website, FDICconnect, rather than in paper form. See https://www.fdic.gov/news/news/financial/2016/fil16071.html |
| Agencies Issue Advanced Notice of Proposed Rulemaking on Enhanced Cyber Risk Management Standards (PR-92- 2016, October 19, 2016) | The federal bank regulatory agencies approved an advance notice of proposed rulemaking inviting comment on a set of potential enhanced cybersecurity risk management and resilience standards that would apply to large and interconnected entities under their supervision. The standards would also apply to services provided by third parties to these firms. The deadline for comment is January 17, 2017. See https://www.fdic.gov/news/news/press/2016/pr16092.html |
| FFIEC Cybersecurity Assessment Tool Frequently Asked Questions (FIL-68-2016, October 18, 2016) | The FFIEC issued a Frequently Asked Questions (FAQ) guide related to the Cybersecurity Assessment Tool (CAT). The FAQs clarify points in the CAT and supporting materials based on questions received by the FFIEC members during the past year. See https://www.fdic.gov/news/news/financial/2016/fil16068.html |
| FDIC Announces Youth Savings Pilot Symposium (PR-91-2016, October 18, 2016) | The FDIC will hold a symposium on fostering youth savings on October 21, 2016. The symposium, “Learning to Save – Saving to Learn,” will bring together representatives from nearly 20 banks participating in the FDIC’s Youth Savings Pilot program, as well as non-profit and school partners. Participants will share their approaches to combining financial education with the opportunity to open a savings account. See https://www.fdic.gov/news/news/press/2016/pr16091.html |
| Banker Teleconference Series on Overdrafts (FIL-66-2016, October 17, 2016) | The federal financial institution regulatory agencies are holding a webinar on November 9, 2016 to discuss overdraft practices. FDIC staff will cover requirements and best practices regarding bank overdraft programs. See https://www.fdic.gov/news/news/financial/2016/fil16066.html |
| FDIC Releases Revised Examination Procedures for Military Lending Act (FIL-65- 2016, October 17, 2016) | The FDIC has released revised interagency examination procedures that reflect the Department of Defense’s 2015 amendments to the implementing regulations of the MLA of 2006 and its August 2016 interpretive rule that provide guidance on certain questions received regarding compliance with the MLA rule. The FDIC is also providing guidance on its initial supervisory expectations in connection with its examinations of financial institutions for compliance with the MLA rule. See https://www.fdic.gov/news/news/financial/2016/fil16065.html |
| FDIC Advisory Committee will Meet to Discuss Unbanked and Underbanked Survey (PR-89- 2016, October 13, 2016) | The FDIC Advisory Committee on Economic Inclusion will meet on October 20, 2016 to discuss the results and release of the full FDIC National Survey of Unbanked and Underbanked Households. Other topics for discussion include expanding access to safe transaction accounts and lessons learned from the FDIC Youth Savings Pilot Program. See https://www.fdic.gov/news/news/press/2016/pr16089.html |
| FDIC Launches Financial Services Website in Spanish (PR-88-2016, October 6, 2016) | The FDIC launched a new Spanish-language website with links to the agency’s resources in Spanish. The website features links to webinars and video presentations that cover deposit insurance, consumer protection, and the FDIC’s Money Smart education program. See https://www.fdic.gov/news/news/press/2016/pr16088.html |
| U.S. and European Officials to Hold Planned Coordination Exercise on Cross-Border Resolution Planning (PR-87-2016, October 5, 2016) | Senior officials representing resolution authorities in the United States and Europe will hold the second in an ongoing series of planned exercises on October 10, 2016 to enhance coordination on cross-border resolution. The exercise will be hosted by the FDIC and will include senior officials from the Treasury Department, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, and the Federal Reserve Bank of New York. See https://www.fdic.gov/news/news/press/2016/pr16087.html |
| Agencies Post Public Sections of “Targeted Submissions” for Eight Firms (PR-86-2016, October 4, 2016) | The FRB and the FDIC posted the public portions of the required “targeted submissions” for the eight systemically important, domestic banking institutions. To foster transparency, the agencies required all the firms to file a public portion of their targeted submissions. See https://www.fdic.gov/news/news/press/2016/pr16086.html |
| FDIC Releases Updated Summary of Deposits Annual Survey (PR-83-2016, September 30, 2016) | The FDIC released the Summary of Deposits (SOD) survey of branch office deposits as of June 30, 2016 for all FDIC-insured institutions. The SOD provides deposit totals for each of the more than 91,000 domestic offices operated by more than 6,000 FDIC-insured commercial and savings banks, savings associations, and U.S. branches of foreign banks. See https://www.fdic.gov/news/news/press/2016/pr16083.html |
| FDIC Announces a New Resource for Community Banks: Affordable Mortgage Lending Guide, Part I, and the Affordable Mortgage Lending Center (FIL- 60-2016/PR-81-2016, September 15, 2016) | The FDIC published a guide and launched an online resource center to help community banks. The Affordable Mortgage Lending Guide organizes information about single-family mortgage products from federal agencies and government-sponsored enterprises and provides technical assistance for community banks on affordable mortgage credit options. See https://www.fdic.gov/news/news/financial/2016/fil16060.html |
| Agencies Issue Study on Banking Activities and Investments (PR-79-2016, September 8, 2016) | The federal bank regulatory agencies released a report on the activities and investments that banking entities may engage in under applicable law. Each agency prepared the section of the report relative to the banking entities it supervises. Each of the three sections includes a discussion of permissible activities, risk mitigation, legal limitations, and specific recommendations as required by the Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). See https://www.fdic.gov/news/news/press/2016/pr16079.html |
| FDIC to Hold 16th Annual Bank Research Conference (PR-78- 2016, September 6, 2016) | The FDIC and the Journal for Financial Services Research will sponsor the 16th Annual Bank Research Conference September 8-9, 2016 in Arlington, Virginia. The conference features a presentation of papers and keynote addresses by FDIC Chairman Martin J. Gruenberg and Professor Douglas Diamond of the University of Chicago’s Booth School of Business. See https://www.fdic.gov/news/news/press/2016/pr16078.html |
| FDIC Consumer News Offers Tips on Choosing and Using the Right Bank Account (PR-71-2016, August 22, 2016) | The Summer 2016 edition of FDIC Consumer News features tips on how to choose and manage a checking or savings account wisely. The edition also has articles on depositing a check using a smartphone or tablet, avoiding credit and debit card frauds, and preparing financially for a flood, fire or other disaster. See https://www.fdic.gov/news/news/press/2016/pr16071.html |
| FDIC Releases Summer Edition of Supervisory Insights Journal (FIL-57-2016/PR-70-2016, August 22, 2016) | The Summer 2016 edition of Supervisory Insights features two articles of interest to examiners, bankers, and supervisors. The first article provides an overview of the current state of de novo bank formation, and the second article summarizes the types of issues most frequently observed by FDIC risk management examiners as reflected in the Matters Requiring Board Attention page of recent Reports of Examination. See https://www.fdic.gov/news/news/financial/2016/fil16057.html |
| Agencies Announce Availability of 2015 Small Business, Small Farm, and Community Development Lending Data (PR- 68-2016, August 18, 2016) | The federal bank regulatory agencies announced the availability of data on small business, small farm, and community development lending reported by certain commercial banks and savings associations, pursuant to the Community Reinvestment Act (CRA). See https://www.fdic.gov/news/news/press/2016/pr16068.html |
| Ability-to-Repay and Qualified Mortgages Rule Videos Updated (FIL-56-2016, August 17, 2016) | As part of the FDIC’s Community Banking Initiative, the agency released updated technical assistance videos on the Ability-to-Repay and Qualified Mortgages Rule. See https://www.fdic.gov/news/news/financial/2016/fil16056.html |
| Proposed New Call Report for Small Institutions (FIL-55-2016, August 17, 2016) | The federal bank regulatory agencies are requesting comment on a proposed new streamlined and less burdensome version of the Call Report for eligible small institutions and proposed burden- reducing revisions to the other two versions of the Call Report. The proposal would define “eligible small institutions” as institutions with total assets less than $1 billion and domestic offices only. The FFIEC has approved this proposal as part of its community bank Call Report burden-reduction initiative. The Call Report revisions are proposed to take effect March 31, 2017. Institutions are encouraged to comment on the proposal by October 14, 2016. See https://www.fdic.gov/news/news/financial/2016/fil16055.html |
| FDIC Extends Comment Period on Third-Party Lending Guidance (PR-67-2016, August 4, 2016) | The FDIC is extending the comment period for proposed guidance on third-party lending. Comments on the proposed guidance, which was published on July 29, 2016, must be received on or before October 27, 2016. The proposed third-party lending guidance outlines the risks that may be associated with third-party lending as well as the expectations for a risk management program, supervisory considerations, and examination procedures related to third-party lending. See https://www.fdic.gov/news/news/press/2016/pr16067.html |
| Regulated Institutions to Submit Self-Assessments of Diversity Policies and Practices (PR-64- 2016, August 2, 2016) | The federal bank regulatory agencies provided information on how the financial institutions they regulate may begin to submit self-assessments of their diversity policies and practices as of year-end 2015, and issued FAQs about the process. See https://www.fdic.gov/news/news/press/2016/pr16064.html |
| FRB and FDIC Extend Deadline for 38 Resolution Plan Submissions (PR-63-2016, August 2, 2016) | The FRB and the FDIC announced that 38 firms will be required to submit their next resolution plans by December 31, 2017. Previously, the firms were required to submit their next plans by December 31, 2016. These firms include 36 domestic bank holding companies and foreign banking organizations, as well as two nonbank financial companies designated by the Financial Stability Oversight Council. See https://www.fdic.gov/news/news/press/2016/pr16063.html |
| Agencies Finalize Rule Exempting Certain Commercial and Financial End Users from Initial and Variation Margin Requirements (PR-62-2016, August 1, 2016) | The FRB, OCC, FDIC, FCA, and Federal Housing Finance Agency announced a final rule exempting certain commercial and financial end users from margin requirements for certain swaps not cleared through a clearinghouse. The exemptions were first adopted by interim final rule published in the Federal Register in November 2015 with a request for public comment. The final rule discusses the comments received and adopts the earlier interim final rule as final without change. See https://www.fdic.gov/news/news/press/2016/pr16062.html |
| FDIC Seeks Comment on Bank Appeals Guidelines (FIL-52-2016, July 29, 2016) | The FDIC is seeking comments on updates to its guidelines for institutions to appeal certain supervisory determinations. The proposed guidelines expand the circumstances under which banks may appeal certain material supervisory determinations. The deadline for submitting comments is October 3, 2016. See https://www.fdic.gov/news/news/financial/2016/fil16052.html |
| FDIC Issues Reminder on Examination Findings (FIL-51- 2016, July 29, 2016) | The FDIC is updating and reissuing FIL-13-2011, Reminder on FDIC Examination Findings, dated March 1, 2011, to re-emphasize the importance of open communication regarding supervisory findings. See https://www.fdic.gov/news/news/financial/2016/fil16051.html |
| FDIC Seeking Comment on Proposed Guidance for Third- Party Lending (FIL-50-2016/PR- 61-2016, July 29, 2016) | The FDIC is seeking comment on proposed Guidance for Third-Party Lending to set forth safety-and- soundness and consumer compliance measures FDIC-supervised institutions should follow when lending through a business relationship with a third party. The proposed guidance is intended to supplement the FDIC’s existing Guidance for Managing Third-Party Risk, which is applicable to any of an institution’s third-party arrangements, including lending through a third party. The deadline for submitting comments is October 27, 2016. See https://www.fdic.gov/news/news/financial/2016/fil16050.html |
| Shared National Credit Review Finds Risk Remains High, but Underwriting and Risk Management Improve (PR-59- 2016, July 29, 2016) | Credit risk in the Shared National Credit portfolio remained elevated, but underwriting and risk management practices improved from prior assessments, according to a review of large shared and complex credits released today by the federal bank regulatory agencies. See https://www.fdic.gov/news/news/press/2016/pr16059.html |
| FDIC Reminds Banks to Maintain Prudent Risk Management of Oil and Gas Exposures (FIL-49-2016, July 27, 2016) | FDIC-supervised institutions with direct or indirect oil and gas (O&G) exposures are reminded to maintain sound underwriting standards, strong credit administration practices, and effective risk management strategies. When O&G related borrowers experience financial difficulties, the FDIC encourages financial institutions to work constructively with borrowers to strengthen the credits and to mitigate losses where possible. See https://www.fdic.gov/news/news/financial/2016/fil16049.html |
| FDIC Releases Technical Assistance Video on Corporate Governance (FIL-46-2016, July 19, 2016) | The FDIC released an updated video on community bank corporate governance as part of its Community Banking Initiative and Technical Assistance Video Program. The video is designed to assist community bank directors and officers in developing a sound corporate governance framework. See https://www.fdic.gov/news/news/financial/2016/fil16046.html |
| Agencies Release Final Revisions to Interagency Q&A Regarding Community Reinvestment (PR-57-2016, July 15, 2016) | The federal bank regulatory agencies with responsibility for CRA rulemaking published final revisions to “Interagency Questions and Answers Regarding Community Reinvestment.” The Questions and Answers document provides additional guidance to financial institutions and the public on the agencies’ CRA regulations. See https://www.fdic.gov/news/news/press/2016/pr16057.html |