US Agencies released their respective semi-annual regulatory flexibility agenda under the Fall 2021 Unified Agenda of the planned Regulatory and Deregulatory Actions. The Unified Agenda lists planned short- and long-term regulatory actions of administrative agencies, including the Board of Governors of the Federal Reserve System (FED), the Bureau of Consumer Financial Protection (CFPB), and the Securities and Exchange Commission (SEC). In this iteration, the key planned regulatory actions are focused on climate risk disclosures, regulatory capital rule, real estate lending standards, operational resilience standards, and enhanced cyber risk management standards. FED also announced its approval of the application of the Old National Bancorp in Evansville, Indiana, to acquire First Midwest Bancorp, Inc and indirectly acquire its subsidiary bank First Midwest Bank, both located in Chicago, Illinois. The Federal Deposit Insurance Corporation (FDIC) and FED also published Federal Register notices on simplification of deposit insurance rules and the proposed framework for the supervision of insurance organizations, respectively.
The FDIC amendments on simplification of deposit insurance rules establish a “trust accounts” category that governs coverage of deposits of both revocable trusts and irrevocable trusts using a common calculation. The amendments also provide consistent deposit insurance treatment for all mortgage-servicing account balances held to satisfy principal and interest obligations to a lender. The amendments provide depositors and bankers with a rule for trust account coverage that is easy to understand and facilitate the prompt payment of deposit insurance, in accordance with the Federal Deposit Insurance Act. The rule goes into effect on April 01, 2024.
The FED proposal on supervision of insurance organizations sets out the new supervisory framework for depository institution holding companies significantly engaged in insurance activities (or supervised insurance organizations). The proposed framework would provide a supervisory approach that is designed specifically to reflect the differences between banking and insurance. Within the framework, the application of supervisory guidance and the assignment of supervisory resources would be based explicitly on a supervised insurance organization’s complexity and individual risk profile. The proposed framework would formalize the ratings applicable to these firms with rating definitions that reflect specific supervisory requirements and expectations. It would also emphasize the FED policy to rely to the fullest extent possible on work done by other relevant supervisors, describing, in particular, the way it will rely more fully on reports and other supervisory information provided by state insurance regulators to minimize the burden associated with supervisory duplication. Comments will be accepted until April 05, 2022.
- Federal Register Notice on Unified Agenda
- Fall 2021 Unified Agenda
- Federal Register Notice on Deposit Insurance Rules
- Press Release on Proposed Supervisory Framework
- Board Memo on Proposed Supervisory Framework (PDF)
- Federal Register Notice on Proposed Supervisory Framework
- Press Release on Bank Acquisition
Keywords: Americas, US, Banking, Insurance, Climate Change Risk, ESG, Unified Agenda, Deposit Insurance, Cyber Risk, US Agencies, Old National Bancorp, First Midwest Bank, Lending, Basel, Operational Resilience, FED, FDIC
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.