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

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7286