OCC AML Bulletin
On December 2, the OCC issued a Bulletin on the Federal Financial Institutions Examination Council’s revised Bank Secrecy Act/Anti-Money Laundering Examination Manual.
Comptroller of the Currency Discusses Reducing Regulatory Burdens
On December 2, Comptroller of the Currency Thomas Curry cited the regulations he believed should be reduced. He endorsed Federal Reserve Board Governor Daniel Tarullo’s suggestion that the Dodd-Frank Act be amended to exempt banks and thrifts with less than $10 billion in assets from the Volcker Rule. He also suggested that a greater number of healthy, well-managed community institutions ought to qualify for the 18-month examination cycle and that federal savings associations should be provided with greater flexibility to expand their business model without changing their governance structure. Curry Remarks.
Changes to Policy on Payment System Risk.
On December 1, the Federal Reserve Board announced the adoption of changes to Part II of the Federal Reserve Policy on Payment System Risk designed to enhance the efficiency of the payment system. The proposed changes are largely related to the posting rules for automated clearing house and commercial check transactions. The changes are effective July 23, 2015. Federal Reserve Board Press Release.
OCC Bulletin on 2015 Fees
On December 1, the OCC issued a Bulletin concerning fees and assessments charged by the OCC for calendar year 2015. The bulletin becomes effective January 1, 2015.
Deposit Insurance Assessment Revisions
On November 26, the FDIC published amendments to its regulations to revise the ratios and ratio thresholds for capital evaluations used in its risk-based deposit insurance assessment system to conform to the prompt corrective action capital (“PCA”) ratios and ratio thresholds adopted by the FDIC, the Federal Reserve Board, and the OCC; revise the assessment base calculation for custodial banks to conform to the asset risk weights adopted by the Federal banking agencies; and require all highly complex institutions to measure counterparty exposure for deposit insurance assessment purposes using the Basel III standardized approach credit equivalent amount for derivatives (with certain modifications) and the Basel III standardized approach exposure amount for securities financing transactions. The amendments are generally effective January 1, 2015. 79 FR 70427.
Federal Reserve Publishes First Semiannual Report on Banking Applications Activity
On November 24, the Federal Reserve Board released its first Semiannual Report on Banking Applications Activity, which provides aggregate information on proposals filed by banking organizations and reviewed by the Federal Reserve. The report includes statistics on the number of proposals that have been approved, denied, and withdrawn, as well as general information about the length of time taken to process proposals. Additionally, it discusses common reasons that proposals have been withdrawn from consideration. The next report, which will include information on the reporting period ending December 31, 2014, is expected to be released during the first half of 2015. Federal Reserve Board Press Release.
FDIC Final Stress Test Rules for Nonmember Banks
On November 21, the FDIC issued final stress test provisions for state nonmember banks and state savings associations with total consolidated assets of more than $10 billion. The final rule revises the 2016 stress test cycle and for years thereafter to begin on January 1 of the calendar year rather than October 1, as is provided for by the current rule. Additionally, the final rule modifies the “as of” dates for financial data (that covered banks will use to perform their stress tests) as well as the reporting dates and public disclosure dates of the annual stress tests for both $10 billion to $50 billion covered banks and over $50 billion covered banks. The final rule is effective January 1, 2015. 79 FR 69365.