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 interagency rule will set minimum initial and variation margin requirements for swaps and security-based swaps not cleared through a clearinghouse. The rule will vary the amount of required margin based on relative risk and contains some exemptions for small banks, savings associations, Farm Credit System institutions, and credit unions with $10 billion or less in total assets. The variation margin requirements will phase in over six months and the initial margin requirements will phase in over four years, with both phase-in periods beginning September 1, 2016.
A new proposed rule would require global systemically important banks (GSIBs), both domestic ones and the domestic operations of foreign ones, to hold new minimum levels of long-term debt and “total loss-absorbing capacity.” The long-term debt could be used to recapitalize GSIBs’ critical operations upon failure. The TLAC requirement could be met with both regulatory capital and long-term debt. Together, they are intended to improve the prospects for a failed domestic GSIB’s orderly resolution and strengthen the resilience of all GSIBs. The deadline for public comment is February 1, 2016.
A new clarification, published today in the Federal Register, further explains the inclusion of transaction-monitoring costs in Regulation II, which implements standards for interchange fees on electronic debit transactions.
A new final interagency rule, published today in the Federal Register, requires regulated lending institutions to escrow flood insurance premiums and fees for loans extended, increased, or renewed on or after January 1, 2016 and secured by residential improved real estate. The changes implement certain provisions of the Homeowner Flood Insurance Affordability Act of 2014 and integrate the OCC’s flood insurance regulations for national banks and federal savings associations.
A new final rule will require the most systemically important U.S. bank holding companies to hold additional capital. The rule establishes criteria to identify those firms and the methods those firms will use to calculate a risk-based capital surcharge. The surcharges will be phased in beginning January 1, 2016 and be fully effective January 1, 2019.
A final order has established the enhanced prudential standards and a compliance timeline for General Electric Capital Corporation, a nonbank financial company designated for Board of Governors supervision by the Financial Stability Oversight Council.
A new proposed rule would modify the Federal Reserve’s capital-planning and stress-testing regulations. The proposed changes would take effect for the 2016 cycles. The deadline for public comment is September 24, 2015.
A new final rule is set to take effect. Unchanged from the version first published in April, the rule bases interest payments on excess balances on a daily rate, rather than a two-week average rate.
New final interagency capital rules, applicable to large banking organizations that calculate their capital ratios according to the “advanced approaches” rule, take effect October 1, 2015.
As directed by the Dodd-Frank Act, a new final interagency rule sets standards for assessing the policies and practices supervised financial institutions use to promote diversity and inclusion in their business, management, and employment activities. The federal financial supervisory agencies seek public comment on the information-collection process these new standards will entail. The deadline for public comment is August 10, 2015.