Federal Reserve Board Reviews its Examination Procedures
On November 20th, the Federal Reserve Board announced it has asked its Inspector General to examine two aspects of the Federal Reserve System’s examination program for large banking organizations: whether there are adequate methods for decision-makers at the relevant Reserve Banks and at the Board to obtain all necessary information to make supervisory assessments and determinations; and whether channels exist for decision- makers to be aware of divergent views among an examination team regarding material issues. Additionally, the Board is conducting its own review of the supervision of the most systemically important financial institutions in the United States. This review will focus on whether the decision-makers at the Board receive the information needed to ensure consistent and sound supervisory decisions regarding the supervision of the most complex banking organizations; and whether adequate methods are in place for those decision-makers to be aware of material matters that required reconciliation of divergent views related to supervision of those firms. Federal Reserve Board Press Release.
Federal Reserve Preparing New Liquidity Rules
On November 20th, Reuters summarized the remarks of Federal Reserve Board Governor Daniel Tarullo regarding liquidity regulation. Tarullo said the Board is drafting new liquidity disclosure rules which would be both quantitative and qualitative. Summary. See also Tarullo Remarks.
OCC Bulletin on Risk Management
On November 19th, the Office of the Comptroller of the Currency (“OCC”) issued a “Statement on Risk Management Associated With Money Services Businesses” to provide clarification to national banks, federal savings associations, and federal branches and agencies of foreign banks on the agency’s supervisory expectations with regard to offering banking services to money services businesses. OCC Bulletin.
Revised Comptroller’s Licensing Manual Booklet
On November 19th, the OCC issued the “Federal Branches and Agencies” booklet of the Comptroller’s Licensing Manual, which revises the booklet of the same title issued in December 1999. OCC Bulletin.
FDIC Releases Mortgage Rule Compliance Video
On November 19th, the Federal Deposit Insurance Corporation (“FDIC”) announced the release of the first in a series of three new technical assistance videos developed to assist bank employees in meeting regulatory requirements. These new videos will address compliance with certain mortgage rules issued by the Consumer Financial Protection Bureau. FDIC Press Release.
Agencies Propose Technical Corrections and Clarifications to the Capital Rules for Large Banks
On November 18th, the Federal Reserve Board, FDIC, and OCC proposed clarifications to the revised regulatory capital rules adopted by the agencies in July 2013. The proposal applies only to large internationally active banking organizations that currently determine their regulatory capital ratios under the advanced approaches rule, or may use the advanced approaches rule in the future (generally those with at least $250 billion in total consolidated assets or at least $10 billion in total on-balance sheet foreign exposures). The proposed rule would make technical corrections and clarify certain aspects of the advanced approaches rule, including the qualification criteria and calculation requirements for risk-weighted assets. Comments should be submitted within 60 days after publication in the Federal Register, which is expected shortly. Joint Agency Press Release.
Federal Reserve Board Survey of Young Workers
On November 18th, the Federal Reserve Board published a new report, based on its 2013 Survey of Young Workers, that provides insight into numerous labor market topics, including the educational attainment, work experience, and expectations of adults aged 18 to 30. Federal Reserve Board Press Release.
OCC Bulletin on Flood Insurance Proposal
On November 14th, the OCC issued a Bulletin on a joint notice of proposed rulemaking that would implement certain provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014. Specifically, the proposal would amend existing regulations to establish requirements for national banks and federal savings associations to escrow flood insurance payments and provide an exemption to the general mandatory flood insurance requirement for detached structures. Comments should be submitted on or before December 29, 2014.