These announcements give prompt notice of amendments and proposed amendments to Federal Reserve regulations and policies, summarize them, and provide links to full information.
A new final rule will allow large banking organizations supervised by the Federal Reserve to count investment-grade, U.S. general obligation state and municipal securities as high-quality liquid assets in satisfaction of the liquidity coverage ratio requirement. Those organizations can count the securities toward the requirement if the securities meet the same liquidity criteria that currently apply to corporate debt securities. The limits on the amount of securities that can qualify depend on the securities’ liquidity characteristics. The rule is effective July 1, 2016.
New federal interagency guidance clarifies that customer identification programs should apply to certain types of prepaid cards. The guidance, which applies to banks, savings associations, credit unions, and U.S. branches and agencies of foreign banks, describes when a holder of one of these prepaid cards should provide information sufficient to verify the cardholder’s identity.
An interim final interagency rule would allow qualifying well-capitalized and well-managed banks, savings associations, and U.S. branches and agencies of foreign banks with less than $1 billion in total assets to be eligible for an 18-month examination cycle. This would be an increase from the previous eligibility threshold of $500 million in total assets. The deadline for public comment is April 29, 2016.
An interim final rule would establish procedures for payment of dividends by Federal Reserve Banks to their depository institution stockholders and amend the treatment of accrued dividends when a Reserve Bank issues or cancels Federal Reserve Bank capital stock. These changes implement the Fixing America’s Surface Transportation Act. The deadline for public comment is April 29, 2016.
Consistent with the Dodd-Frank Act’s transfer of certain rulemaking authority to the Consumer Financial Protection Bureau (CFPB) and as proposed in 2014, the Board of Governors is repealing its Regulation AA, which prohibits banks from engaging in unfair or deceptive acts or practices (UDAP). The repeal of Reg AA takes effect March 21. 2016. The Board also proposes to repeal its Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). As with Reg AA’s UDAP authority, the Dodd-Frank Act transferred rulemaking authority under HMDA to the CFPB. The deadline for public comment on the repeal of Reg C is April 27, 2016.
The Board of Governors has extended the deadline for public comment on its new proposed rule to require global systemically important banks to hold new minimum levels of long-term debt and “total loss-absorbing capacity.” The new deadline for public comment is February 19, 2016.
The Board of Governors has extended the deadline for public comment on its new proposed policy statement explaining the factors the Board would consider as it sets the Countercyclical Capital Buffer, which is intended to help the largest banking organizations absorb shocks that arise when credit conditions worsen. The new deadline for public comment is March 21, 2016.
The Board of Governors has released the supervisory scenarios for the 2016 Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act stress test exercises and has issued instructions to firms participating in CCAR. This year, CCAR will include 33 bank holding companies with $50 billion or more in total consolidated assets.
A new proposed policy statement from the Board of Governors explains the factors the Board would consider as it sets the Countercyclical Capital Buffer, which is intended to help the largest banking organizations absorb shocks that arise when credit conditions worsen. The deadline for public comment on the proposed policy statement is February 19, 2016.
New guidance from the Board of Governors explains capital planning expectations for all large financial institutions and clarifies differences in those expectations based on firm size and complexity.