Skip to Main Content

Regulatory News

We implement congressional laws on a wide range of banking and financial activities, in part through regulations. When modifications to these regulations are proposed to meet the current needs of the financial community, the public is invited to provide input via the comment letter process.

July 1, 2020

An interim final rule, published July 1, 2020 in the Federal Register, extends the compliance date of the initial margin requirements of the Swap Margin Rule. For swap entities and counterparties with average annual notional swap portfolios of $50 billion to $750 billion the deadline is extended from September 1, 2020 to September 1, 2021  (the Swap Margin Rule’s phase 5). For counterparties with average annual notional swap portfolios of $8 billion to $50 billion the deadline is extended from September 1, 2021 to September 1, 2022 (the Swap Margin Rule’s phase 6). The final rule provides additional clarification on documentation requirements for smaller counterparties. This interim final rule is effective as of September 1, 2020.   The deadline for public comment is August 31, 2020.

July 1, 2020

A final rule, published July 1, 2020 in the Federal Register, amends the Swap Margin Rule to (i) facilitate transition away from LIBOR and (ii) allow firms additional flexibility to allocate collateral internally. The final rule allows swap entities to amend legacy swaps to replace the reference to LIBOR, or other reference rates expected to end, without triggering margin exchange requirements. Swap entities may conduct risk-reducing portfolio compression or make certain other non-substantive amendments to their legacy swap portfolios without altering their legacy status.  Additionally, under the final rule, entities that are part of the same banking organization generally will no longer be required to hold a specific amount of initial margin for inter-affiliate swaps, except if a depository institution's total exposure to all affiliates exceeds 15 percent of its Tier 1 capital.  This final rule is effective as of August 31, 2020.

June 1, 2020

An interim final rule, published June 1, 2020 in the Federal Register, temporarily revises the supplementary leverage ratio calculation for depository institutions to allow them greater flexibility to act as financial intermediaries during this period of financial disruption. The interim final rule permits depository institutions to choose to exclude U.S. Treasury securities and deposits at Federal Reserve Banks from their calculation of the supplementary leverage ratio. This option is available to depository institution subsidiaries of U.S. global systemically important bank holding companies and depository institutions subject to the Category II or Category III capital standards.  If a depository institution makes this election, it will be required to request approval from its primary federal banking regulator before making capital distributions, such as paying dividends to its parent company, as long as the exclusion is in effect.  This interim final rule is effective from June 1, 2020 through March 31, 2021.  The deadline for public comment is July 16, 2020.

May 28, 2020

A final rule, published May 28, 2020 in the Federal Register, extends by 18 months the compliance dates related to Single-Counterparty Credit limits for Bank Holding Companies and Foreign Banking Organizations (final SCCL rule).  Under this final rule, the largest foreign banks need to comply with the final SCCL rule by July 1, 2021. Smaller foreign banks need to comply by January 1, 2022. This extension applies to the combined U.S. operations of foreign banks and provides additional time for foreign jurisdictions' implementation of similar standards to become effective.  This final rule is effective as of May 28, 2020.

May 19, 2020

A correcting amendment, published May 19, 2020 in the Federal Register, to an interim final rule (originally published March 31, 2020 in the Federal Register), clarifies the interim final rule. The amendment clarifies that the changes to the calculation of the supplementary leverage ratio apply to all banking organizations that must comply with the supplementary leverage ratio requirement, including Category III banking organizations. The amendment also provides supplementary information on when and how to calculate transition amounts. These changes are in effect as of May 19, 2020. The agencies are not requesting comments.

May 6, 2020

An interim final rule, published May 6, 2020 in the Federal Register, requires banking organizations to neutralize the effect under the Liquidated Coverage Ratio (LCR) of participating in the Money Market Mutual Fund Liquidity Facility (MMLF) and the Paycheck Protection Program Liquidity Facility (PPPLF).  The interim final rule requires MMLF and PPPLF loans and assets securing them (other than securities, debt instruments, and instruments issued by the banking organization) be excluded from the calculation of total net cash outflow under the LCR rules. This change is in effect as of May 6, 2020.  The deadline for public comment is June 5, 2020.

April 28, 2020

An interim final rule, published April 28, 2020 in the Federal Register, amends Regulation D to delete numeric limits on certain transfers and withdrawals that may be made each month from savings deposits.  The interim final rule deletes the six-per-month limit on convenient transfers from the "savings deposit" definition and allows depository institutions to suspend enforcement of this limit.  This interim final rule is intended to allow depository institution customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits at a time when financial events associated with the coronavirus pandemic have made such access more urgent.  These changes are in effect as of April 23, 2020.  The deadline for public comment is June 29, 2020.

  • Concurrently, published May 1, 2020 in the Federal Register, the Federal Reserve is making temporary revisions to the instructions to the FR 2900 series, FR Y-9, and FR 2886b reports to reflect these amendments to Regulation D. For revisions to reporting forms, see the Federal Register
 
April 23, 2020

A statutory interim final rule will provide temporary relief to community banking organizations by making temporary changes to the community bank leverage framework pursuant to Section 4012 of the Coronavirus Aid, Relief, and Economic Security Act. As of the second quarter of 2020, banking organizations with a leverage ratio of 8% or greater (or meeting other criteria) may use the community bank leverage ratio framework.  The interim final rule provides a two-quarter grace period for qualifying community banking organizations whose leverage ratios fall below 8%, as long those ratios don’t fall below 7%. The deadline for public comment is June 6, 2020.

April 23, 2020

An interim final rule provides a graduated transition from the temporary 8% community bank leverage ratio requirement to a 9% leverage ratio requirement.  The leverage ratio will be 8.5% in 2021 and 9% thereafter. The deadline for public comment is June 8, 2020.

April 22, 2020

An interim final rule, published April 22, 2020 in the Federal Register, temporarily modifies Regulation O to allow Paycheck Protection Program (PPP) lenders to make loans to businesses owned by their directors and certain shareholders without having to subject those loans to some of Regulation O’s requirements.  This new rule is intended to be consistent with the Small Business Administration’s rules and restrictions.  These temporary changes are in effect as of April 22, 2020.  The deadline for public comment is June 8, 2020.

Additional Resources

phone Contact Us

Legal Department (804) 697-8426