Featured Product

    FED to Expand Access to PPPL Facility for Additional Qualified Lenders

    April 23, 2020

    FED announced that it is working to expand access to its Paycheck Protection Program Liquidity (PPPL) Facility for additional Small Business Administration-qualified lenders as soon as possible. This is being done to facilitate lending to small businesses via the Paycheck Protection Program (PPP) of the Small Business Administration. In addition, FED has announced temporary actions aimed at increasing the availability of intraday credit extended by Federal Reserve Banks on both a collateralized and uncollateralized basis. These temporary actions will be effective on their date of publication in the Federal Register and will expire on September 30, 2020. Finally, FED announced that it will report substantial amounts of information on a monthly basis for the liquidity and lending facilities using Coronavirus Aid, Relief, and Economic Security (CARES) Act funding.

    Access to PPPL Facility

    Small Business Administration-qualified PPP lenders include depository institutions, such as banks and credit unions, as well as non-depository institution lenders, such as some Community Development Financial Institutions. Currently, only depository institutions are eligible to participate in the PPPL Facility and over 1000 such institutions have already been approved to access the program. The PPPL Facility supports the PPP by extending credit to financial institutions that make PPP loans, using the loans as collateral. The additional liquidity from the PPPL Facility increases the capacity of financial institutions to make additional PPP loans. 

    Temporary Actions Aimed at Increasing Availability of Intraday Credit

    In light of disruptions from the COVID-19 outbreak, depository institutions may face unanticipated intraday liquidity constraints and demands on collateral pledged to the Federal Reserve Banks. In response, FED is adjusting the manner in which the Federal Reserve Banks administer part II of the Policy on Payment System Risk (PSR policy). Specifically, FED is:

    • Suspending uncollateralized intraday credit limits (net debit caps) and is waiving overdraft fees for institutions that are eligible for the primary credit program
    • Permitting a streamlined procedure for secondary credit institutions to request collateralized intraday credit (max caps)

    FED is suspending two collections of information that are used to calculate net debit caps. FED believes that these actions will not increase credit risk to the Federal Reserve Banks. These temporary actions are intended to support the provision of liquidity to households and businesses and to mitigate the disruptions from COVID-19 outbreak. A list of the frequently asked questions regarding this will be released shortly.

     

    Related Links

    Keywords: Americas, US, Banking, COVID-19, Paycheck Protection Program, Liquidity Facility, Intraday Credit, CARES Act, Federal Reserve Banks, FED

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News
    News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News
    News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News
    News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267