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 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.
A new joint interagency statement emphasizes the importance of prudent risk management related to commercial real estate lending. The statement, which reinforces existing guidance, is a response to growth in many CRE asset and lending markets, increased competitive pressures, rising CRE concentrations in banks, and an easing of CRE underwriting standards.
As part of their decennial effort to identify outdated or unnecessary regulations, the federal bank regulatory agencies have requested comment on regulations related to rules of procedure, safety and soundness, and securities. The deadline for public comment is March 22, 2016.
A new final rule clarifies procedures for emergency lending under Section 13(3) of the Federal Reserve Act. Among other features, the rule specifies that lending programs and facilities have “broad-based" eligibility only if they’re not designed for the purpose of aiding any number of failing firms and only if at least five entities would be eligible to participate in them. The final rule also broadens the definition of insolvency to cover borrowers who fail to pay undisputed debts as they become due during the 90 days prior to borrowing or who are determined by the Board of Governors or lending Reserve Bank to be insolvent. The final rule takes effect January 1, 2016.
In 2016, the dollar threshold for loans exempt from special appraisal requirements for higher-priced mortgage loans will remain at its current level, $25,500.
In 2016, the dollar threshold for consumer credit and lease transactions exempt from Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) will remain at its current level, $54,600.
A new final rule will modify the Federal Reserve’s capital plan and stress-testing rules. Largely similar to the proposed rule, the changes will take effect for the 2016 capital plan and stress-testing cycle.
A new proposed rule would require large banking organizations to disclose data related to their liquidity coverage ratios, including their quarterly consolidated liquidity coverage ratios, their high-quality liquid asset amounts, and their projected net cash outflow amounts. The deadline for public comment is February 2, 2016.
The Operating Committee of the Federal Reserve’s Large Institution Supervision Coordinating Committee, which coordinates supervision of the largest, most systemically important financial institutions in the U.S., will oversee the establishment of minimum operating and documentation standards for all supervisory activities and oversee the development of new training materials for large financial institution supervisory teams. The Federal Reserve Banks of New York and Richmond have also added new resources to their dedicated supervisory teams to ensure consistency in their supervisory approaches.