Featured Product

    US Agencies Publish Multiple Regulatory Updates in October 2022

    October 26, 2022

    The Board of Governors of the Federal Reserve System (FED) updated the FR Y-9C form and instructions (including supplemental instructions), proposed (until December 12, 2022) information collection for discount window borrowers, issued a notice on the framework for supervision of insurance organizations, approved the acquisition of Texas-based Allegiance Bank, and allowed South Africa-based FirstRand Bank Limited to establish a representative office in New York. FED and the Federal Deposit Insurance Corporation (FDIC) published a proposed rule on resolution-related resource requirements for large banks and issued feedback on the 2021 resolution plan of Truist Financial Corporation. Additionally, FDIC adopted final rules on amendments and revisions to deposit insurance assessment while the Office of the Comptroller of the Currency (OCC) published an information collection request on the annual stress test rule. Finally, FED, together with other US Agencies, announced threshold for smaller loan exemption from appraisal requirements for higher-priced mortgage loans and dollar thresholds in Regulation Z and Regulation M for exempt consumer credit and lease transactions.

    Below is a summary of the key developments:

    • FED adopted a new supervisory framework for the depository institution holding companies significantly engaged in insurance activities, which are also referred to as the supervised insurance organizations. The framework establishes the supervisory ratings applicable to these organizations with rating definitions that reflect specific supervisory requirements and expectations. It also emphasizes the FED policy to rely to the fullest extent possible on work done by other relevant supervisors, describing the way it relies on reports and other supervisory information provided by state insurance regulators to minimize supervisory duplication. The framework will come in effect from November 03, 2022.
    • FED and FDIC are seeking comments, until December 23, 2022, on resolution-related resource requirements for large banks. Views are being sought on whether an extra layer of loss-absorbing capacity could improve optionality in resolving a large banking organization or its insured depository institution and on the costs and benefits of such a requirement. The proposed rule applies to Category II and Category III banking organizations—generally those that have more than USD 250 billion in consolidated assets but are not global systemically important banks. In addition, FED and FDIC provided feedback on the 2021 resolution plan of Truist Financial Corporation and areas of improvement for its next resolution plan, which is due on or before July 01, 2024.
    • FDIC adopted a final rule that incorporates updated accounting standards in the risk-based deposit insurance assessment system applicable to all large insured depository institutions, including highly complex ones. The final rule includes modifications to borrowers experiencing financial difficulty, an accounting term recently introduced by the Financial Accounting Standards Board (FASB) to replace restructured loans or troubled debt restructurings (TDRs), in the underperforming assets ratio and higher-risk assets ratio for purposes of deposit insurance assessments. Additionally, FDIC adopted a final rule to increase initial base deposit insurance assessment rate schedules by 2 basis points, beginning the first quarterly assessment period of 2023. Both the final rules will come in effect from January 01, 2023.
    • OCC is seeking comments, until November 25, 2022, on the renewal of its information collection titled “Annual Stress Test Rule.” OCC uses this information to assess the reasonableness of the stress test results and provide forward-looking information on a covered institution's capital adequacy. OCC also uses stress test results to determine whether additional analytical techniques and exercises could be appropriate to identify, measure, and monitor risks at the covered institution. The stress test results support ongoing improvement in a covered institution's stress testing practices with respect to its internal assessments of capital adequacy and overall capital planning.
    • FED, along with OCC and the Consumer Financial Protection Bureau (CFPB), announced that the 2023 threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans will increase from USD 28,500 to USD 31,000. The threshold amount will be effective January 01, 2023 and is based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, as of June 01, 2022.

     

    Related Links

     

     

    Keywords: Americas, UD, Banking, Reporting, Stress Testing, Fr 2046, Insurance, Deposit Insurance, Troubled Debt Restructuring, Capital Adequacy, Regulatory Capital, Basel, Mortgage Loans, Regulation Z, Regulation M, Lending, Consumer Credit, Credit Risk, CFPB, OCC, FDIC, FED, US Agencies, Fr Y 9, Resolution Framework

    Featured Experts
    Related Articles
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697