FED published a report that summarizes banking conditions and the supervisory and regulatory activities of FED, in conjunction with semiannual testimony before Congress by the Vice Chairman for Supervision. The report also focuses on how FED tailors its supervisory and regulatory programs based on size and complexity.
In addition to the summary of key developments and trends, this report consists of three main sections:
- The Banking System Conditions section, which provides an overview of trends in the banking sector based on data collected by the FED and other federal financial regulatory agencies as well as market indicators of industry conditions
- The Regulatory Developments section, which provides an overview of the focus areas of the regulatory policy work by FED, including pending rules
- The Supervisory Developments section, which provides background information on supervisory programs and approaches as well as an overview of key supervisory themes and trends, supervisory findings, and supervisory priorities
The report highlights that FED is focused on opportunities to simplify the current regulatory framework and minimize compliance burden in achieving the goal of a safe, sound, and efficient financial system. The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCP Act) presents an opportunity for FED to continue to tailor its regulations to focus on the largest banking firms that represent the highest risk to the U.S. financial system while reducing burden for firms that pose less systemic risk. Many of the FED regulations over the past year dealt with further tailoring of existing regulations and implementing provisions of EGRRCP Act. The report contains a table showing proposed and final rules as well as select FED and interagency statements, issued over the past 12 months. While summarizing the supervisory developments, the report focuses on tailoring of the FED programs based on size and complexity of an organization and distinguishes between large financial institutions and regional and community banking organizations, as supervisory approaches and priorities for these institutions frequently differ.
Keywords: Americas, US, Banking, Banking Supervision, Proportionality, EGRRCP Act, Reporting, Basel III, FED
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).