New supervisory guidance on allowance for loan and lease losses (ALLL) estimation practices, out today, reminds regulated financial institutions to monitor all credit quality indicators relevant to credit portfolios, including loans and lines of credit secured by junior liens on one- to four-family residential properties.

A new proposal outlines procedures for securities holding companies to elect Federal Reserve supervision. Public comments on the proposal are due October 11.

The Federal Reserve proposes a two-year phase-in for regulatory reporting requirements for most savings and loan holding companies and an initial reporting exemption for others. Public comments on the proposal are due November 1.

New federal supervisory guidance, published June 15 in the Federal Register, outlines general principles for satisfactory stress-testing practices at banking organizations with total consolidated assets of $10 billion or greater. Public comments on the guidance are due July 29.

A final rule, adopted by the Federal Reserve, OCC and FDIC, sets a floor for the risk-based capital requirements applicable to the largest, internationally active banking organizations. The rule takes effect 30 days from publication in the Federal Register.

An interim final rule, effective upon publication in the Federal Register, will allow small bank holding companies that are S-Corp or Mutual BHCs to exclude certain kinds of subordinated debt from treatment as debt for purposes of the Federal Reserve's Small BHC debt-to-equity standard. Public comments on the rule are due July 30.

Under a new proposal, top-tier BHCs with total consolidated assets of $50 billion or greater would have to submit annual capital plans for review by the Federal Reserve. Public comments on the proposal are due August 5.

The deadline for public comment on the federal financial regulatory agencies' proposal has been extended to August 1.

The Federal Reserve, which assumes supervisory and regulatory authority for savings & loan holding companies (SLHCs) and their non-depository subsidiaries on July 21, seeks comment on its proposed supervisory approach to SLHCs. Public comments on the proposal are due May 23.

A joint proposal from the federal financial regulatory agencies would prohibit certain potentially risky incentive compensation arrangements at financial institutions with more than $1 billion in assets. Public comments on the proposal, which has just been published in the Federal Register, are due May 31.

An approved final rule, just published, explains how much time banking companies and nonbank financial companies supervised by the Federal Reserve will have to make their investments and activities conform to the so-called “Volcker Rule,” which restricts proprietary trading and relationships with hedge funds. The rule takes effect April 1.

Under a proposed rule from the Federal Reserve and FDIC, systemically significant bank holding companies and nonbank financial companies would have to submit annual plans describing their strategies for rapid, orderly resolution in bankruptcy. These companies would also have to submit quarterly credit exposure reports. Public comments on the proposal are due June 10.

A joint rule proposed by five federal agencies, including the Federal Reserve, would impose margin and capital requirements on regulated swap entities. Public comments on the proposal are due June 24.

A new proposal sets standards to help determine whether a financial company qualifies for the Federal Reserve's new enhanced consolidated prudential supervision. Comments on the proposal are due March 30.

The federal bank and thrift regulatory agencies have proposed changes to thrift and thrift holding company reporting requirements. The changes are designed to bring uniformity to reporting requirements for insured banks and savings institutions and to do likewise for all holding companies supervised by the Federal Reserve. Comments on the proposed changes are due in April.

The Federal Reserve, FDIC, and OCC seek comment on proposed new market risk capital rules for banking organizations that engage in significant trading activity. Comments are due in March, 2011.

A final interagency rule, substantially similar to one proposed this past June, expands Community Reinvestment Act consideration of neighborhood stabilization activities. The rule takes effect next month.

New interagency guidance explains minimum regulatory standards for appraisals of collateral for mortgages and other loans. The new guidance replaces previous guidance on the subject.

New joint final guidance, out today, seeks to ensure that incentive compensation arrangements at banking organizations appropriately tie rewards to longer-term performance and don't undermine the firm's safety and soundness or create undue risks to the financial system.

Final guidance, published today in the Federal Register, addresses risks associated with funding and credit concentrations arising from correspondent relationships.

A new advisory, out today, reemphasizes the importance of sound practices to manage interest rate risk.

The Basel Committee on Banking Supervision seeks public comment on proposed new capital and liquidity standards. Comments are due April 16, 2010.

A final rule allowing mortgage loans modified under the Home Affordable Mortgage Program to retain their pre-modification risk weights takes effect December 21.

A final rule allowing mortgage loans modified under the Home Affordable Mortgage Program to retain their pre-modification risk weights takes effect December 21.

A new Federal Reserve policy statement, out today, provides guidance for commercial real estate loan workouts.

A new proposed regulatory capital rule, slated to take effect next year, would change the way banking organizations account for items they currently exclude from their balance sheets. Public comments on the proposed rule and its implementation are due in October.

Federal banking agencies are seeking public comment on the agencies' new guidance for sound management of funding and liquidity risks. Comments are due 60 days from today.

The Financial Accounting Standards Board has published two new Statements of Financial Accounting Standards. The Federal Reserve is reviewing the effect these new standards will have on regulatory capital requirements.

Bank holding companies may include as part of their Tier 1 capital senior perpetual preferred stock issued to the U.S. Treasury Department under the Troubled Asset Relief Program (TARP).

On March 31, 2009, new limits on the inclusion of trust preferred securities and other restricted core capital elements in bank holding company tier 1 capital were supposed to take effect. In response to the current financial situation, the Board of Governors has delayed imposition of these new limits until March 31, 2011.

Federal agencies announced they will begin stress tests of eligible bank holding companies with assets exceeding $100 billion. The agencies expect to complete the stress tests within the next two months.

Bank holding companies should consult the Federal Reserve before declaring a dividend that could raise safety and soundness concerns, redeeming or repurchasing regulatory capital instruments when experiencing financial weaknesses, or redeeming or repurchasing common stock or perpetual preferred stock that would result in a net reduction in the amount of such equity instruments outstanding for the quarter.

The Federal Reserve approved three final rules, previously approved as interim rules, to facilitate participation in the AMLF and the provision of liquidity to affiliates for assets typically funded in the tri-party repo market.

Federal agencies have approved a final rule to permit banking organizations to reduce goodwill it must deduct from tier 1 capital by any associated deferred tax liability.

The banking agencies have issued a revised Guide to the Interagency Country Exposure Review Committee Process.

Public comments are due in January on proposed appraisal and evaluation guidelines regarding sound real estate appraisal and evaluation practices.

Banks, bank holding companies, and thrifts may adjust their September 30, 2008 regulatory capital calculations for the tax effects from losses on direct and indirect investments in Fannie Mae and Freddie Mac preferred stock.

Application guidelines and other information are available for the Treasury's capital purchase program and the FDIC's temporary liquidity guarantee program.

Banking organizations may recognize the economic benefits of the recently legislated change in the tax treatment of losses on Fannie Mae and Freddie Mac preferred stock in the third quarter of 2008 for regulatory capital purposes.

New guidance is available about the consolidated supervision of bank holding companies and combined U.S. operations of foreign banking organizations and about supervisory expectations for firm-wide compliance risk management.

Comments will be due in November on a proposal to reduce the risk weights for claims on Freddie Mac and Fannie Mae and claims they guarantee.

The Federal Reserve Board published a policy on minority equity investments in banks and bank holding companies that generally do not constitute control under the Bank Holding Company Act.

To facilitate participation by depository institutions and bank holding companies in the special lending program as intermediaries between the Federal Reserve and money market mutual funds, the Federal Reserve Board approved temporary limited exceptions to the Board's leverage and risk-based capital rules for bank holding companies and state member banks and to sections 23A and 23B of the Federal Reserve Act, which restrict transactions between banks and their affiliates.

Comments will be due this fall on a proposed rule that would implement less-complex approaches (the Basle II standardized framework) for calculating risk-based capital requirements.

Federal supervisors published new host state loan-to-deposit ratios that they will use to determine compliance with restrictions against out-of-state branches established, acquired, or operating primarily for deposit production.

Supervisory agencies have updated their statement outlining the qualification process for banking organizations implementing the new advanced capital adequacy framework known as Basel II.

Federal supervisors issued final guidance outlining the supervisory review process for banking organizations implementing the new advanced capital adequacy framework known as Basel II.

The Federal Reserve Board encourages banking organizations to work with borrowers and customers in communities affected by Hurricane Gustav and subsequent storms and to work with their Reserve Banks to resolve weather-related operating problems.

Federal agencies are ready to help smaller banks develop capital restoration plans if they have significant exposures to Fannie Mae and Freddie Mac.

Federal banking agencies are evaluating amendments to FAS 140 that the Financial Accounting Standards Board proposed today regarding qualifying special-purpose entities.

Public comments will be due in October on a proposal to permit banking organizations to reduce their goodwill deduction from tier 1 capital by any associated deferred tax liability.