OCC Final rule: expanded examination cycle eligibility. 

The OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced that they have published an interagency final rule that adopts without change the February 29, 2016, interim final rule amending the regulations governing eligibility for the 18-month on-site examination cycle. Pursuant to the FAST Act, the interim final rule made qualifying 1- and 2-rated national banks, federal savings associations, and federal branches and agencies with less than US$1 billion in total assets eligible for an 18-month (rather than a 12-month) examination cycle. (1/6/2017)

Revised Comptroller’s Licensing Manual booklet. The OCC announced that it has issued the “Changes of Corporate Title and Address” booklet of the Comptroller’s Licensing Manual, which revises the booklet of the same title issued in October 2009. The revised booklet incorporates updated procedures and requirements following the integration of the OTS into the OCC in 2011 and the issuance of revised regulations that became effective July 1, 2015. (1/6/2017)

Report discusses risks facing national banks and FSAs. The OCC announced the publication of its Semiannual Risk Perspective for Fall 2016, which reported strategic, credit, operational, and compliance risks as top concerns. (1/5/2017)

Final Rule on industrial and commercial metals. The OCC announced that it has issued a final rule prohibiting national banks and federal savings associations from dealing or investing in “industrial or commercial metal.” The effective date of the final rule is April 1, 2017. (1/3/2017)

Revised Comptroller’s Handbook booklet and rescissions. The OCC announced that it has issued the “Internal and External Audits” booklet of the Comptroller’s Handbook. The revised booklet provides guidance to examiners assessing audit exposures, associated risks, and risk management practices. (12/30/2016)

Survey says that underwriting standards eased for fourth consecutive year. The OCC announced the release of its 2016 Annual Survey of Credit Underwriting Practices, in which, examiners reported an incremental easing of underwriting practices within commercial and retail loans across 93 national banks and federal savings associations. The examiners found that easing standards reflect the banks’ response to competitive pressures, expanding credit risk appetites, and a desire for loan growth. (12/20/2016)

Framework adopted for receiverships for uninsured federally chartered national banks. The OCC announced that it has released a final rule setting forth a framework for placing uninsured national banks into receivership. The final rule will apply to all uninsured national banks regulated by the OCC but will not apply to federal savings associations, all of which are insured. The final rule becomes effective on January 19, 2017. (12/20/2016) OCC Bulletin.

OCC names new Deputy Comptroller for Administrative Operations. The OCC announced that it has selected Andrew M. Pugh to be its Deputy Comptroller for Administrative Operations. Mr. Pugh will supervise the agency’s Workplace Services and Acquisition Management functions, and its Office of Security.  (12/19/2016)

FAQs released on new accounting standard on financial instruments - credit losses. The OCC, along with the Board of Governors of the Federal Reserve System, the FDIC, and the NCUA, announced that they have published FAQs to help financial institutions and examiners with the new accounting standard, Accounting Standards Update 2016-13, Topic 326, “Financial Instruments - Credit Losses,” issued by the FASB on June 16, 2016. The new accounting standard introduces the current expected credit losses methodology for estimating allowances for credit losses. The effective date of the new credit losses standard depends on the financial institution’s characteristics. For SEC filers, the new credit losses standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. (12/19/2016)

Rules to reduce regulatory burden. On December 15th, the OCC announced its release of the final rule to remove outdated or unnecessary provisions of certain rules to reduce regulatory burden on national banks and federal savings associations. (12/15/2016)

Revised Comptroller’s Handbook. The OCC announced that it has issued the “Consigned Items and Other Customer Services” booklet of the Comptroller’s Handbook. This booklet provides updated guidance to examiners assessing the risks associated with consigned items and other customer services. (12/14/2016)

Review of efforts to enhance large bank supervision. The OCC announced its release of a third-party review of its efforts to enhance the agency’s supervision of large and midsize national banks and federal savings associations. The review assessed the OCC’s implementation of recommendations from the 2013 International Peer Review of the agency’s approach to supervising large and midsize institutions. The assessment, as well as the original 2013 review, was conducted by senior regulators from Australia, Canada, and Singapore along with former staff of the International Monetary Fund. (12/13/2016)

Rule expands number of banks and savings associations qualifying for 18-month examination cycle. The OCC announced that it, along with the FDIC and the Federal Reserve, issued interagency final rules that increase the number of small banks and savings associations eligible for an 18-month examination cycle rather than a 12-month cycle. The interagency rules are intended to reduce regulatory compliance costs for smaller institutions, while maintaining safety and soundness protections. These rules have been in effect since February 29, 2016, pursuant to the interim final rules previously adopted by the agencies.  (12/12/2016)

FDIC

FDIC swears in new Inspector General. The FDIC announced that Jay N. Lerner has been sworn in as Inspector General. Mr. Lerner oversees the Office of Inspector General, which conducts investigations of potential fraud and other crimes related to insured financial institutions and closed banks. (1/9/2017)

Determinations on October resolution plan submissions of five systemically important domestic banking institutions. The FDIC and the Federal Reserve announced that Bank of America, Bank of New York Mellon, JP Morgan Chase, and State Street adequately remediated deficiencies in their 2015 resolution plans. The agencies also announced that Wells Fargo did not adequately remedy all of its deficiencies and will be subject to restrictions on certain activities until the deficiencies are remedied. (12/13/2016)

FFIEC Call Report for small institutions. The FFIEC announced that its federal banking agencies have published a Federal Register Notice finalizing the reporting requirements for a new and streamlined “Call Report” for small financial institutions. (12/30/2016)

Federal Reserve Board and FOMC request comment on rules to amend regulations under FOIA. The Board and the Federal Open Market Committee invited public comment on interim final rules to amend regulations for processing requests under the FOIA. The effective date for the interim final rules was December 27, 2016. Comments are requested within 60 days of publication in the Federal Register, which is expected shortly. (12/23/2016)

Board extends comment period on proposal to strengthen requirements and limitations on physical commodity activities of financial holding companies. The Board extended until February 20, 2017, the comment period for its proposed rule that would strengthen existing requirements and limitations on the physical commodity activities of financial holding companies. The proposal would help reduce the catastrophic, legal, and financial risks that physical commodity activities pose to financial holding companies. (12/20/2016)

Board announces appointment of chairs and deputy chairs. The Board announced the designation of the chairs and deputy chairs of the 12 Federal Reserve Banks for 2017. (12/20/2016)

Comment requested on proposed guidelines to evaluate requests for joint accounts at Federal Reserve Banks. The Board requested comment on proposed guidelines that would be used to evaluate requests for joint accounts at Federal Reserve Banks. The accounts are meant to expedite settlement between depository institutions participating in US payment systems. Comments on the proposed guidelines are requested within 60 days of publication in the Federal Register, which is expected shortly. (12/19/2016)

Rule approved requiring public disclosure of certain quantitative liquidity risk metrics. The Board announced that it approved a rule requiring, for the first time, that large banking organizations publicly disclose certain quantitative liquidity risk metrics. (12/19/2016)

Board adopts final rule to strengthen ability of government authorities to resolve in orderly way largest domestic and foreign banks operating in US. The Board announced that it has adopted a final rule to strengthen the ability of government authorities to resolve in an orderly way the largest domestic and foreign banks operating in the US without support from taxpayer-provided capital. (12/15/2016)

Board appoints new director of Division of Financial Stability. The Federal Reserve announced the appointment of Andreas Lehnert as director of its Division of Financial Stability, which was effective December 25, 2016. Lehnert was involved in implementing the Board’s research and policy agenda on financial stability. Lehnert helped develop and run the Board’s first regulatory stress tests and helped launch the Office of Financial Stability Policy and Research, which later became the Division of Financial Stability. (12/12/2016)

Additional details on how banking entities can seek extension to conform certain investments to Volcker Rule requirements. The Board announced the distribution of additional details regarding how banking entities may seek an extension to conform their investments in a narrow class of funds that qualify as “illiquid funds” to the requirements of section 619 of Dodd-Frank, commonly known as the Volcker Rule. (12/12/2016)

Board approves technical amendments to rule that identifies GSIBs and needs additional amounts of risk-based capital. The Board announced the approval of technical amendments to its rule that identifies GSIBs and requires those firms to hold additional amounts of risk-based capital to avoid restrictions on capital distributions and discretionary bonus payments. The changes would not materially alter the underlying rule approved by the Board in July 2015. The Board further invited comment on an interim final rule that extends the initial implementation of certain reporting requirements related to the GSIB surcharge rule. The adjusted timeline applies to firms that have US$50 billion or more in total consolidated assets and are not currently identified as GSIBs. The reporting requirements are being harmonized with similar reporting requirements from other rules. (12/9/2016)

Comment requested on proposal to fully accept rating system for bank holding companies to S&L holding companies. The Board announced that it is inviting comment on a proposal to fully apply its existing rating system for bank holding companies to savings and loan holding companies. Comments must be received by February 13, 2017. (12/9/2016)

CFPB Changes to senior leadership announced. The CFPB announced leadership changes within the agency. The positions announced are: the Chief of Staff; the Chief Information Officer; the Chief Financial Officer; the Assistant Director of Consumer Lending, Reporting, and Collections Markets; and the Assistant Director for the Office for Servicemember Affairs. (1/9/2017)