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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 |
|---|---|
| U.S. Banking Agencies Support Conclusion of Reforms to International Capital Standards (PR-94-2017, December 7, 2017) | The federal bank regulatory agencies announced support for the conclusion of efforts to reform the international bank capital standards initiated in response to the global financial crisis. The agencies are considering how to appropriately apply these revisions to the Basel III reform package in the United States, and any proposed changes will be made through the standard notice-and-comment rulemaking process. See https://www.fdic.gov/news/news/press/2017/pr17094.html |
| FDIC Consumer News Offers Tips on Dealing with Debt (PR-92-2017, December 4, 2017) | The Fall 2017 FDIC Consumer News suggests ways to handle different kinds of debt. These include what to do if you are struggling to pay loans, tips on getting the best terms for an auto loan, information on why your credit card interest rate can go up, and things to consider before co-signing a student loan. The Fall 2017 FDIC Consumer News can be read or printed at https://www.fdic.gov/consumers/consumer/news/cnfall17/. See https://www.fdic.gov/news/news/press/2017/pr17092.html |
| FDIC Announces Webinar on Resources for Accessing Affordable Mortgage Credit (FIL-61-2017, November 27, 2017) | The FDIC is hosting a webinar on December 8, 2018. The webinar will highlight the FDIC’s Affordable Mortgage Lending Guide, and panelists discuss state and federal mortgage products. The goal is to increase lenders’ awareness and understanding of available mortgage lending products and services. The Guide is available at https://www.fdic.gov/consumers/community/mortgagelending/index.html. See https://www.fdic.gov/news/news/financial/2017/fil17061.html |
| Federal Banking Agencies Finalize Extension of Certain Capital Rule Transitions (PR-89-2017, November 21, 2017) | The federal bank regulatory agencies finalized a rule for certain banking organizations by extending the existing capital requirements for mortgage servicing assets and certain other items. The rule was finalized to prevent different rules from taking effect while the agencies consider a broader simplification of the capital rules. See https://www.fdic.gov/news/news/press/2017/pr17089.html |
| Regulatory Capital Rules: Retention of Certain Existing Transition Provisions for Banking Organizations that Are Not Subject to the Advance Approaches Capital Rules (FIL-60-2017, November 21, 2017) | The federal bank regulatory agencies have jointly issued a final rule to extend the 2017 transition provisions under the capital rules for certain capital deductions and risk weights as well as certain minority interest requirements for banking organizations not subject to the advanced approaches capital rules. The final rule extends the provisions for mortgage servicing assets, deferred tax assets, and certain investments in unconsolidated financial institutions. See https://www.fdic.gov/news/inactive-financial-institution-letters/2017/fil17060.html |
| Federal Banking Regulatory Agencies Announce Availability of 2016 Small Business, Small Farm, and Community Development Lending Data (PR-88-2017, November 21, 2017) | 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 under the Community Reinvestment Act (CRA). The FFIEC has prepared aggregate disclosure statements of small business and farm lending for all metropolitan statistical areas and nonmetropolitan counties. These are available at https://www.ffiec.gov/cra/. See https://www.fdic.gov/news/news/press/2017/pr17088.html |
| Agencies Amend CRA Regulations to Conform to HMDA Regulation Changes and Remove References to the Neighborhood Stabilization Program (PR-86-2017, November 20, 2017) | The federal bank regulatory agencies have amended their respective CRA regulations primarily to conform to changes made by the CFPB to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The amendments to the CRA regulations take effect January 1, 2018. See https://www.fdic.gov/news/news/press/2017/pr17086.html |
| Banker Teleconference Series: Small Business Resources for Community Banks (FIL-59-2017, November 15, 2017) | The FDIC is conducting a teleconference on December 12, 2017, to discuss small business resources and research pertinent to community banks. Talking points include the Money Smart for Small Businesses financial education program; the FDIC’s Small Business Lending Survey; and CRA consideration for small business lending, services, and investments. See https://www.fdic.gov/news/news/financial/2017/fil17059.html |
| Proposed Revisions to the Consolidated Reports of Condition and Income (Call Report) for June 30, 2018 (FIL-57-2017; FIL-58-2017, November 9, 2017 ) | The federal bank regulatory agencies are requesting comment on additional burden-reducing revisions to the three versions of the Call Report. These revisions would take effect June 30, 2018. Comments must be submitted on or before January 8, 2018. See https://www.fdic.gov/news/inactive-financial-institution-letters/2017/fil17057.html See https://www.fdic.gov/news/inactive-financial-institution-letters/2017/fil17058.html |
| FDIC Announces Meeting of Advisory Committee on Community Banking (PR-84-2017, October 27, 2017) | The FDIC is holding a meeting of the Advisory Committee on Community Banking on November 1, 2017. At the meeting, senior staff will brief Committee members on a number of topics, including resilience in the face of natural disasters, the FDIC’s Small Business Lending Survey, de novo applications, and initiatives to address the Economic Growth and Regulatory Paperwork Reduction Act review process. Staff also will discuss supervisory policy issues, such as efforts to implement HMDA procedures, and Current Expected Credit Loss Standards. See https://www.fdic.gov/news/news/press/2017/pr17084.html |
| Agencies Issue Temporary Exceptions to Appraisal Requirements in Areas Affected by Severe Storms and Flooding related to Hurricanes Harvey, Irma, and Maria (FIL-56-2017, October 26, 2017, PR-81-2017, October 17, 2017) | The federal bank regulatory agencies and the NCUA have temporarily eased appraisal requirements for real estate-related financial transactions in areas declared to be a major disaster. Financial institutions will not have to obtain appraisals for affected transactions if the properties involved are located in areas declared major disasters, if there are binding commitments to fund the transactions within 36 months of the date the areas were declared major disasters, and if the value of the real properties supports the institutions’ decisions to enter into the transactions. See https://www.fdic.gov/news/news/financial/2017/fil17056.html |
| Interagency Community Bank Teleconference: Liquidity and Funding Risk Management (FIL-55-2017, October 24, 2017) | The federal bank regulatory agencies and the Conference of State Bank Supervisors are hosting a teleconference on November 6, 2017, to address trends in community bank liquidity and funds management. Guidelines in the 2010 Interagency Policy Statement on Funding and Liquidity Risk Management are discussed, including the importance of a strong liquidity asset cushion, diversified funding, brokered deposit restrictions, cash flow analysis, and contingency funding planning. See https://www.fdic.gov/news/news/financial/2017/fil17055.html |
| FDIC Announces Webinar on Financial Education and Financial Empowerment Resources that Support People with Disabilities (FIL- 54-2017, October 23, 2017) | The FDIC is co-hosting a webinar with the CFPB on November 15, 2017. The webinar is providing an overview of two financial education resources that can be helpful for people with disabilities, FDIC’s Money Smart, and CFPB’s Your Money, Your Goals. The webinar helps familiarize participants with recent enhancements to the resources that are designed to promote economic inclusion of people with disabilities. See https://www.fdic.gov/news/news/financial/2017/fil17054.html |
| Liquidity Coverage Ratio: Frequently Asked Questions (FIL-53-2017, October 23, 2017) | The federal bank regulatory agencies are issuing the FAQs to address questions received regarding the applicability of the liquidity coverage ratio rule in specific situations. The rule was adopted in September 2014 and implements a quantitative liquidity requirement for institutions with more than $10 billion in consolidated assets that are consolidated subsidiaries of internationally active banking organizations. See https://www.fdic.gov/news/news/financial/2017/fil17053.html |
| FDIC Releases Interagency Designated Key HMDA Data Fields List (FIL-51-2017, October 17, 2017) | The federal bank regulatory agencies are issuing designated key HMDA data fields to support the efficient and effective evaluations of financial institutions’ compliance with HMDA requirements. Amendments to Regulations C are effective January 1, 2018, and establish the data that financial institutions will collect and report pursuant to HMDA requirements. See https://www.fdic.gov/news/news/financial/2017/fil17051.html |
| FDIC 7th Annual Consumer Research Symposium in Arlington, Virginia (PR-78-2017, October 11, 2017) | The FDIC is sponsoring the 7th Annual Consumer Research Symposium on October 13, 2017. The conference features presentations of selected research papers and panels regarding credit utilization, economic inclusion, mortgage markets, and credit markets. See https://www.fdic.gov/news/news/press/2017/pr17078.html |
| Banker Teleconference: Proposed Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (FIL-48-2017, October 6, 2017) | The federal bank regulatory agencies are hosting an interagency conference call on October 12, 2017 to address proposed changes to the capital rules related to the treatment of acquisition, development or construction loans; items subject to threshold deduction; and minority interest includable in regulatory capital. A summary of the proposal and an estimation tool to help community banking organizations evaluate the impact of the proposal are available at https://www.fdic.gov/regulations/capital/index.html. See https://www.fdic.gov/news/news/financial/2017/fil17048.html |
| Banker Teleconference Series: HMDA Implementation (FIL-47-2017, October 6, 2017) |
The FDIC is holding a teleconference on October 26, 2017 to discuss implementation of the 2015 HMDA Final Rule regarding requirements that become effective beginning in 2018. These include the new HMDA data requirements and best practices. A Question-and-Answer segment is included. See https://www.fdic.gov/news/news/financial/2017/fil17047.html |
| FDIC Releases Results of Summary of Deposits Survey (PR-76-2017, October 3, 2017) | The FDIC released the results of its annual survey of branch office deposits for all FDIC-insured institutions. The latest data are as of June 30, 2017. The Summary of Deposits is available at https://www5.fdic.gov/sod. See https://www.fdic.gov/news/news/press/2017/pr17076.html |
| Agencies Extend Next Resolution Plan Filing Deadline for Certain Domestic and Foreign Banks (PR-74-2017, September 28, 2017) | The FRB and FDIC extended the next resolution plan filing deadline for eight large domestic banks by one year to July 1, 2019. The extension provides time for firms to remediate any weaknesses identified in their July 2017 submissions and prepare and improve their next resolution plan submissions. See https://www.fdic.gov/news/news/press/2017/pr17074.html |
| FDIC Webinar to Highlight Spanish-language Financial Education Resources (PR-73-2017, September 28, 2017) | In recognition of Hispanic Heritage Month, the FDIC invites organizations that serve the U.S. Spanish-speaking population and members of their communities to participate in a webinar that will highlight the agency’s Spanish-language consumer resources. These sources include the Money Smart financial education program and deposit insurance coverage information. See https://www.fdic.gov/news/news/press/2017/pr17073.html |
| FDIC Adopts Final Rule on Qualified Financial Contracts (PR-72-2017, September 27, 2017) | The FDIC adopted a final rule to enhance the resilience and safety and soundness of state savings associations and banks supervised by the FDIC that are affiliated with systemically important U.S. and foreign banking organizations. Under the final rule, these institutions are required to ensure that their qualified financial contracts do not allow for immediate cancellation or termination under certain circumstances. See https://www.fdic.gov/news/news/press/2017/pr17072.html |
| Agencies Propose Simplifying Regulatory Capital Rules (FIL-45-2017, PR-71-2017, September 27, 2017) | The federal bank regulatory agencies issued a proposal intended to simplify aspects of the generally applicable capital rules related to the treatment of acquisition, development or construction loans; items subject to threshold deduction; and minority interests includable in regulatory capital. The agencies plan to address these matters in their joint report to Congress pursuant to the Economic Growth and Regulatory Paperwork Reduction Act. See https://www.fdic.gov/news/news/financial/2017/fil17045.html |
| Joint Notice of Proposed Rulemaking: Securities Transaction Settlement Cycle (FIL-44-2017, September 19, 2017) | The notice of proposed rulemaking issued jointly by the FDIC and the OCC would shorten the standard settlement cycle for securities purchased or sold by FDIC-supervised institutions, national banks, and federal savings associations from three to two days. Adopting this shortened settlement cycle would align the FDIC’s and OCC’s regulations with the new industry standard settlement cycle. See https://www.fdic.gov/news/inactive-financial-institution-letters/2017/fil17044.html |
| Agencies to Propose Amending CRA Regulations to Conform to HMDA Regulation Changes and Remove References to the Neighborhood Stabilization Program (PR-70-2017, September 13, 2017) | The federal bank regulatory agencies issued a joint notice of proposed rulemaking to amend their respective CRA regulations to conform to changes made by the CFPB to Regulation C, which implements the HMDA. See https://www.fdic.gov/news/news/press/2017/pr17070.html |
| Revised Guidelines for Appeals of Material Supervisory Determinations (FIL-42-2017, September 6, 2017) | The FDIC has adopted revised Guidelines for Appeals of Material Supervisory Determinations (Guidelines), which govern appeals by FDIC-supervised institutions. The revised Guidelines expand the circumstances under which banks may appeal a material supervisory determination and enhance consistency with the appeals processes of other federal bank regulatory agencies. The revised Guidelines include other limited technical and conforming amendments. The Guidelines are available at https://www.fdic.gov/news/news/financial/2017/fil17042a.pdf. See https://www.fdic.gov/news/news/financial/2017/fil17042.html |
| New Accounting Standard of Credit Losses: Frequently Asked Questions (FIL-41-2017, September 6, 2017) | The federal financial institution regulatory agencies issued updated Frequently Asked Questions on the New Accounting Standard of Financial Instruments – Credit Losses (FAQs). The new standard will take effect in 2020 or 2021, depending on an institution’s characteristics. The FAQs focus on the application of the current expected credit losses methodology for estimating credit loss allowances and related supervisory expectations and regulatory reporting guidance. See https://www.fdic.gov/news/inactive-financial-institution-letters/2017/fil17041.html |
| FFIEC Launches New Industry Outreach Website (FIL-40-2017, September 6, 2017) | The FFIEC launched a new industry outreach website to enhance communication between the FFIEC and financial institutions, trade associations, third-party providers, consultants, and other interested parties. To learn more about the program or sign-up to receive FFIEC email updates, visit https://industryoutreach.ffiec.gov. See https://www.fdic.gov/news/news/financial/2017/fil17040.html |
| Agencies Issue Notice of Proposed Rulemaking to Shorten Settlement Cycle (PR-67-2017, September 1, 2017) | The OCC and FDIC issued a notice of proposed rulemaking to shorten the standard settlement cycle for securities purchased or sold by national banks, federal savings associations, and FDIC- supervised institutions. This proposal is in conjunction with an industry-wide shift from a three to two-day settlement cycle. This change applies to trades placed on or after September 5, 2017. See https://www.fdic.gov/news/news/press/2017/pr17067.html |
| Supervisory Insights Journal: Summer 2017 Issue Now Available (FIL-39-2017, PR-65-2017, August 30, 2017) | The Summer 2017 issue of Supervisory Insights features two articles of interest to examiners, bankers, and supervisors. The first article emphasizes the importance of liquidity risk management and describes contingency funding strategies to help community banks mitigate potential stress. The second article provides an overview of the Bank Secrecy Act/Anti-Money Laundering examination and discusses trends in supervision and enforcement. Supervisory Insights – Summer 2017, is available at www.fdic.gov/supervisoryinsights. See https://www.fdic.gov/news/inactive-financial-institution-letters/2017/fil17039.html |
| HMDA Examiner Transaction Testing Guidelines (FIL-36-2017, August 23, 2017) | The FFIEC issued guidelines for examiners to use in assessing the accuracy of the HMDA data that institutions record and report. The HMDA Examiner Transaction Testing Guidelines describe the FFIEC procedures for sampling and validating HMDA data. These guidelines should assist financial institutions seeking to better understand the approach that the FDIC will use to assess HMDA data as part of the examination process. The Guidelines are available at https://www.fdic.gov/news/ news/financial/2017/fil17036a.pdf. See https://www.fdic.gov/news/news/financial/2017/fil17036.html |
| Regulatory Capital Rules: Retention of Certain Existing Transition Provisions for Banking Organizations That Are Not Subject to the Advanced Approaches Capital Rules (FIL-34-2017, PR-62-2017, August 22, 2017) | The federal bank regulatory agencies have jointly issued a notice of proposed rulemaking to extend the current treatment under the regulatory capital rules of certain regulatory capital deductions and risk weights as well as certain minority interest requirements for banking organizations not subject to the advanced approaches capital rules. See https://www.fdic.gov/news/inactive-financial-institution-letters/2017/fil17034.html |
| Regulatory Capital Treatment of Certain Centrally Cleared Derivative Contracts Under the FDICs Capital Rule (FIL-33-2017, August 14, 2017) | The FDIC issued guidance on the regulatory capital treatment of certain centrally cleared, settled-to- market derivative contracts. Certain central counterparties have revised their rulebooks such that variation margin is considered a settlement payment and not collateral. If an FDIC-supervised institution determines the transfer of variation margin on a centrally cleared, settled-to-market contract settles any outstanding exposure on the contract and resets the fair value of the contract to zero, the contract’s remaining maturity is the time until the next exchange of variation margin. This guidance may affect a derivative contract’s calculation of potential future exposure, which uses a conversion factor based, in part, on the contract’s remaining maturity. See https://www.fdic.gov/news/news/financial/2017/fil17033.html |
| Agencies Extend Resolution Plan Filing Deadline for Certain Foreign and Domestic Banks (PR-60-2017, August 8, 2017) | The FRB and FDIC extended the resolution plan filing deadline for 19 foreign banking organizations and two large domestic bank holding companies to December 31, 2018, to give the firms an additional year to address any supervisory guidance in their next plan submissions. Resolution plans must describe the company’s strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure of the company. For foreign banking organizations, resolution plans are focused on their U.S. operations. See https://www.fdic.gov/news/news/press/2017/pr17060.html |
| Reviews of Shared National Credit Portfolio Find Risk Remains High (PR-58-2017, August 2, 2017) | Risk in the portfolios of large syndicated bank loans declined slightly but remains elevated, according to the Shared National Credit (SNC) Program Review release by the federal bank regulatory agencies. The high level of credit risk in the SNC portfolio stems primarily from distressed borrowers in the oil and gas sector and other industry sector borrowers exhibiting excessive leverage. The review also found that credit risk management practices at most large agent banks continued to improve. See https://www.fdic.gov/news/news/press/2017/pr17058.html |