OCC

OCC report studies risks facing national banks, federal savings associations.The OCC reported that strategic, credit, operational, and compliance risks continue to be top concerns in its Semiannual Risk Perspective for Spring 2016. (7/11/2016)

CRA evaluations for 19 national banks, federal savings associations. The OCC announced its release of a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of June 1, 2016, through June 30, 2016. The list covers only national banks, federal savings associations, and insured federal branches of foreign banks that have received ratings. (7/6/2016)

Interim final rule adjusting civil money penalties for inflation is published in the Federal Register. The OCC announced publication in the Federal Register of the interim final rule amending its rules of practice and procedure for national banks and federal savings associations to adjust the maximum amount of each civil money penalty (CMP) within its jurisdiction, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The adjustments apply only to penalties assessed on or after August 1, 2016, which is the effective date of this rule. Comments must be submitted by August 30, 2016. (7/1/2016)

OCC reports an increase in bank trading revenue for the first quarter of 2016.The OCC announced the release of its Quarterly Report on Bank Trading and Derivatives Activities: First Quarter 2016, which reported that trading revenue of US commercial banks and savings associations rose to US$5.8 billion in the first quarter of 2016 from US$4.3 billion in the previous quarter. (6/30/2016)

Notice of proposed rulemaking on incentive-based compensation arrangements. The OCC, jointly with the Board of Governors of the Federal Reserve System, the FDIC, the National Credit Union Administration, the SEC, and the Federal Housing Finance Agency, announced publication of a notice of proposed rulemaking in the Federal Register to implement the incentive-based compensation provisions of Section 956 of Dodd-Frank. The proposal would establish new requirements for incentive-based compensation at certain covered institutions regulated by the agencies. Comments on the proposed rule are due July 22, 2016. (6/23/2016)

Comptroller delivers speech on agency’s effort to develop a framework for evaluating responsible innovation. The OCC announced that Comptroller of the Currency Thomas J. Curry delivered a speech at the agency’s Forum on Responsible Innovation about the OCC’s determination to develop a framework for identifying and evaluating responsible innovation. (6/23/2016)

OCC names Beverly F. Cole Deputy Comptroller for Compliance Supervision.The OCC announced that Beverly F. Cole will become its Deputy Comptroller for Compliance Supervision. Ms. Cole will serve as the operational executive responsible for developing and promulgating compliance operational protocols, examination strategies, and schedules. She will oversee a staff implementing bank supervision policy for compliance and establish programs to ensure efficient bank supervision for compliance. She will report to the Senior Deputy Comptroller for Compliance and Community Affairs. (6/22/2016) 

Agencies seek comment on NSFR proposed rule. The OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced that they are seeking comment on a proposed rule that would strengthen the liquidity risk management of large banks and savings associations. The proposed net stable funding ratio (NSFR) rule would create a longer-term funding requirement designed to work in concert with the shorter-term liquidity coverage ratio (LCR) rule. The notice of proposed rulemaking was published in the Federal Register on June 1, 2016, and comments are due on August 5, 2016. (6/21/2016)

Federal Reserve

Federal Reserve formalizes previously announced conformance period extension for certain Volcker Rule legacy fund investments. The Board announced that it will extend through July 21, 2017, the conformance period for banking entities to divest ownership in certain legacy investment funds and terminate relationships with funds that are prohibited under the rule. This announcement formalizes the Board’s prior commitment to facilitate the orderly implementation of section 619 of the Dodd-Frank Act, known as the Volcker Rule. This is the final of three one-year extensions that the Board is authorized to grant. (7/7/2016) Order.

Federal Reserve releases its annual determination of aggregate consolidated liabilities of financial companies. The Federal Reserve announced that it has released its annual determination of the aggregate consolidated liabilities of financial companies as required by section 622 of the Dodd-Frank Act, which prohibits a financial company from combining with another company if the resulting company’s liabilities would exceed 10% of the aggregate consolidated liabilities of all financial companies. (6/30/2016)

Federal Reserve monitoring developments in global financial markets. The Federal Reserve announced that it is carefully monitoring developments in global financial markets, in cooperation with other central banks, following the results of the UK referendum on membership in the EU. The Federal Reserve added that it is prepared to provide dollar liquidity through its existing swap lines with central banks, as necessary, to address pressures in global funding markets, which could have adverse implications for the U.S. economy. (6/24/2016)

CFPB

CFPB proposes to amend annual privacy notice requirement under Regulation P. The Consumer Financial Protection Bureau proposed an amendment to Regulation P, which requires, among other things, that financial institutions provide to their customers an annual notice describing their privacy policies and practices. The amendment would implement a December 2015 statutory amendment to the Gramm-Leach-Bliley Act providing an exception to this annual notice requirement for financial institutions that meet certain conditions. (6/27/2016)