FDIC Proposes Amendments to Stress Test Rules

On June 16th, the Federal Deposit Insurance Corporation (“FDIC”) requested comment on a notice of proposed rulemaking amending the FDIC’s Annual Stress Test rule. Like the similar proposals published by the Federal Reserve Board and the Office of the Comptroller of the Currency (“OCC”), the FDIC’s proposed amendments would shift back the timing of the annual stress testing cycle by approximately 90 days, and clarify that institutions covered by the Annual Stress Test rule will not have to calculate their regulatory capital ratios using the Basel III advanced approaches until the stress testing cycle beginning on January 1, 2016. Comments should be submitted within 60 days after publication in the Federal Register, which is expected shortly. FDIC Press Release.

OCC Workshops

The OCC will host two workshops in Minneapolis, Minnesota on July 22-23, 2014 for directors of national community banks and federal savings associations. The “Compliance Risk” and “Risk Assessment” workshops are designed exclusively for directors of institutions supervised by the OCC. The compliance risk workshop focuses on major compliance risks and consumer protection regulations, such as the Qualified Mortgage Rule, Bank Secrecy Act, and Community Reinvestment Act, along with key elements of an effective compliance risk management program. The risk assessment workshop discusses the OCC’s approach to risk-based supervision, and best practices to identify, measure, monitor and control risk. The interactive sessions also cover industry hot topics, such as credit risk, interest rate risk, and the regulatory environment. Workshops will also be held in Columbus, Ohio on July 28-30, 2014. “Mastering the Basics: A Director’s Challenge” is a three-day workshop designed exclusively for directors of institutions supervised by the OCC and provides practical information on the roles and responsibilities of a community bank director. The workshop will address the regulatory environment, board reports, bank ratings, and resources available exclusively for OCC-regulated institutions.