OCC proposes heightened standards for largest banks. The OCC proposed new standards for large national banks and federal savings associations. The proposed standards would apply to any insured institution, including an insured US federal branch of a foreign bank, with average total consolidated assets of US$50 billion or more. The proposal would reserve the OCC’s authority to apply the guidelines to an institution with less than US$50 billion in assets if the OCC determines that it is highly complex or presents a heightened risk. The proposal includes minimum standards for the design and implementation of an institution’s risk governance framework and minimum standards for oversight of that framework by the institution’s board. Comments should be submitted within 60 days after publication in the Federal Register, which is expected during the week of January 20th. (1/16/2014) OCC press release.
Comment sought on physical commodity activities by bank holding companies. The Federal Reserve Board seeks comment on commodity activities conducted under different sections of the Bank Holding Company Act. In an advanced notice of proposed rulemaking, the Board addresses the risks that physical commodity activities could pose to the safety and soundness of financial holding companies and to financial stability generally, and the conflicts of interest and the potential risks and benefits of imposing additional capital requirements or other restrictions on the commodity activities of financial holding companies. Comments should be submitted by March 15, 2014. (1/14/2014) Federal Reserve Board press release.