Federal Reserve Board

Agencies Propose Rule to Update Calculation of Derivative Contract Exposure Amounts Under Regulatory Capital Rules

Posted on

 

On October 30, the Federal Reserve Board, the Federal Depository Insurance Corporation and the Office of the Comptroller of the Currency (collectively, the “Agencies“) proposed changes to their standards for how large federal institutions measure counterparty credit risk posed by derivatives contracts under the Agencies’ regulatory capital rules. The proposal would provide the “standardized approach for measuring counterparty credit risk” as an alternative approach to the Agencies’ current exposure methodology for calculating derivative exposure. Release.

Federal Reserve Board Issues Interim Final Rule Expanding the Applicability of the Board’s Small Bank Holding Company Policy Statement

Posted on

 

On August 28, 2018, the Federal Reserve Board published “an interim final rule expanding the applicability of the Board’s small bank holding company policy statement[.]” The interim final rule affects the rules governing “the transfer of ownership of small community banks[.]” Once published in the Federal Register, the interim final rule will be in effect and comments will be allowed for 30 days. Press Release.

Agencies Issue Interim Final Rules Expanding Examination Cycles for Qualifying Small Banks and U.S. Branches and Agencies of Foreign Banks

Posted on

 

On August 23, 2018, the Board of Governors of the Federal Reserve System (“Federal Reserve Board“), the Federal Deposit Insurance Corporation (“FDIC“) and the Office of the Comptroller of the Currency (“OCC“) “issued interim final rules to expand the number of insured depository institutions and U.S. branches and agencies of foreign banks eligible for an 18-month on-site examination cycle.” Once the interim final rules are published in the Federal Register, there will be 60 days available to provide comments. Federal Reserve Board Press Release. FDIC Press Release. OCC Press Release.

Federal Banking Agencies Issue Statement Regarding the Impact of the Act

Posted on

 

On July 6, 2018, the Federal Reserve Board, the Federal Deposit Insurance Corporation and the Office of the Comptroller issued a joint statement describing the rules and related reporting requirements that are affected by the enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act (the “Act“). The federal banking agencies provide their interim positions on the applicability of the Act until their respective regulations are amended to incorporate the Act’s changes. Release.

Federal Reserve Board Approves Rule to Limit Risk Concentration Among Systemically Important Financial Firms

Posted on

 

On June 14, 2018, the Federal Reserve Board (the “Board“) approved a rule to limit the concentration of risk between global systemically important bank holding companies (“GISB“) and their counterparties. Under the rule, a GISB would be limited to a credit exposure of no more than fifteen (15) percent of such GISB’s tier 1 capital to another systemically important financial firm, and a bank holding company with over $250 billion in total consolidated assets would be limited to a credit exposure of no more than twenty-five (25) percent of its tier 1 capital to a counterparty. Release.

FRB Announces Approval of Final Amendments to its Regulation A

Posted on

 

On May 7, 2018, the Federal Reserve Board (“FRB“) published its approval “approval of final amendments to its Regulation A, which governs extensions of credit by Federal Reserve Banks, to make certain technical adjustments including to reflect the expiration of the Term Asset Backed Securities Loan Facility program.” Release.

Federal Reserve Board Announces It Has Finalized a Rule Adjusting the Board’s Maximum Civil Money Penalties

Posted on

On January 12, 2018, the Federal Reserve Board announced that it had finalized its rule about maximum civil money penalties. This action was taken in response to a law that directed federal agencies to change their limits each year for inflation, as opposed to every four years. Release.

Federal Reserve Board Requests Comment on Package of Proposals that would Increase the Transparency of its Stress Testing Program

Posted on

On December 7, 2017, the Federal Reserve Board requested comment on a package of proposals that would increase the transparency of its stress testing program.  The proposed enhanced disclosures have three components: (1) enhanced descriptions of supervisory models, including key variables; (2) modeled loss rates on loans grouped by important risk characteristics and summary statistics associated with the loans in each group; and (3) portfolios of hypothetical loans and the estimated loss rates associated with the loans in each portfolio.  Comments on the measures will be accepted through January 22, 2018. Press Release.

FRB Requests Public Comment on Proposal to Amend Regulation A

Posted on

 

On December 4, 2017, the Federal Reserve Board (“FRB“) requested public comment on a proposal to amend Regulation A to make certain technical adjustments, including to reflect the expiration of the Term Asset Backed Securities Loan Facility (“TALF“) program.  Regulation A governs extensions of credit by Federal Reserve Banks.   The proposed amendments are “intended to allow the regulation to address circumstances in which the Federal Open Market Committee has established a target range for the federal funds rate rather than a single target rate, and to reflect the expiration of the TALF program.”  Comments on the proposal must be received within 30 days of publication in the Federal Register. Release. Proposal.