Featured Product

    Congress Passes Economic Growth, Regulatory Relief, and CP Act

    May 22, 2018

    The U.S. House of Representatives voted 258-159 to pass the “Economic Growth, Regulatory Relief and Consumer Protection (CP) Act,” which is a significant pro-growth financial regulatory reform package. The leadership of the House is being hailed as instrumental in achieving this historic bipartisan achievement. The bill reduces regulatory requirements—including stress testing, capital, and liquidity requirements—for some banks while raising the asset threshold at which larger banks face stricter rules.

    The bill requires the appropriate federal banking agencies to exclude, for calculating a custodial bank's supplementary leverage ratio, funds of a custodial bank that are deposited with a central bank. (Supplementary leverage ratio is a capital adequacy measure that refers to the ratio of a banking organization's tier-one capital to its leverage exposure.) The amount of such funds may not exceed the total value of deposits of the custodial bank linked to fiduciary or custodial and safekeeping accounts. The bill amends the Financial Stability Act of 2010, with respect to nonbank financial companies supervised by the FED and certain bank holding companies, to increase the asset threshold:

    • At which certain enhanced prudential standards shall apply, from USD 50 billion to USD 250 billion, while allowing FED the discretion in determining whether a financial institution with assets equal or greater than USD 100 billion must be subject to such standards
    • At which company-run stress tests are required, from USD 10 billion to USD 250 billion 
    • For mandatory risk committees, from USD 10 billion to USD 50 billion

    The bill states that the federal banking agencies must develop a specified Community Bank Leverage Ratio (the ratio of a bank's equity capital to its consolidated assets) for banks with assets of less than USD 10 billion. Such banks that exceed this ratio shall be deemed to be in compliance with all other capital and leverage requirements. Additionally, the bill amends the Bank Holding Company Act of 1956 to exempt, from the "Volcker Rule," banks with total assets valued at less than USD 10 billion and trading assets and liabilities comprising not more than 5% of total assets. This bill also amends the Truth in Lending Act (TILA) to allow a depository institution or credit union with assets below a specified threshold to forgo certain ability-to-pay requirements regarding residential mortgage loans.

     

    Related Links

    Keywords: Americas, US, Banking, Dodd Frank Act, Bipartisan Banking Bill, Proportionality, Regulatory Relief, US House of Representatives

    Related Articles
    News

    HKMA Consults on Supervisory Policy for OTC Derivatives Transactions

    HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.

    May 25, 2020 WebPage Regulatory News
    News

    PRA on Regulatory Capital and IFRS 9 Requirements for Payment Holidays

    PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.

    May 22, 2020 WebPage Regulatory News
    News

    HKMA on Fintech Adoption and Innovation by Banks in Hong Kong

    HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.

    May 20, 2020 WebPage Regulatory News
    News

    BIS on Impact of Increasing Use of Cloud Technology on Cyber Risk

    BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.

    May 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guide for Managing Climate and Environmental Risks

    ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.

    May 20, 2020 WebPage Regulatory News
    News

    ECB Issues Opinion on Revisions to CRR in Response to COVID Crisis

    ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.

    May 20, 2020 WebPage Regulatory News
    News

    EBA Assesses Interlinkages Between Recovery and Resolution Planning

    EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).

    May 20, 2020 WebPage Regulatory News
    News

    SRB Publishes Final MREL Policy Under the Banking Package

    SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.

    May 20, 2020 WebPage Regulatory News
    News

    US Agencies Amend Interim Final Rule on Transition Period for CECL

    US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.

    May 19, 2020 WebPage Regulatory News
    News

    ECB Releases Results of March Survey on Credit Terms and Conditions

    ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.

    May 19, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5208