Semiannual Agenda of Regulations, 40438-40442 [2017-17016]

Agencies

• FEDERAL DEPOSIT INSURANCE CORPORATION

[Federal Register Volume 82, Number 163 (Thursday, August 24, 2017)]
[Unknown Section]
[Pages 40438-40442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17016]



[[Page 40437]]

Vol. 82

Thursday,

No. 163

August 24, 2017

Part XXV





 Federal Deposit Insurance Corporation





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 Semiannual Regulatory Agenda

Federal Register / Vol. 82 , No. 163 / Thursday, August 24, 2017 / 
Unified Agenda

[[Page 40438]]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Ch. III


Semiannual Agenda of Regulations

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Semiannual regulatory agenda.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is hereby 
publishing items for the Spring 2017 Unified Agenda of Federal 
Regulatory and Deregulatory Actions. The agenda contains information 
about FDIC's current and projected rulemakings, existing regulations 
under review, and completed rulemakings.

FOR FURTHER INFORMATION CONTACT: Robert E. Feldman, Executive 
Secretary, Federal Deposit Insurance Corporation, 550 17th Street NW., 
Washington, DC 20429.

SUPPLEMENTARY INFORMATION: Twice each year, the FDIC publishes an 
agenda of regulations to inform the public of its regulatory actions 
and to enhance public participation in the rulemaking process. 
Publication of the agenda is in accordance with the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). The FDIC amends its regulations 
under the general rulemaking authority prescribed in section 9 of the 
Federal Deposit Insurance Act (12 U.S.C. 1819) and under specific 
authority granted by the Act and other statutes.

Proposed Rule Stage

Enhanced Cyber Risk Management Standards (3064-AE45)

    On October 26, 2016, the Board of Governors of the Federal Reserve 
System, the Office of the Comptroller of the Currency, and the Federal 
Deposit Insurance Corporation published in the Federal Register an 
advanced notice of proposed rulemaking (ANPRM) regarding enhanced cyber 
risk management standards for large and interconnected entities under 
their supervision and those entities' service providers. The ANPRM 
addresses five categories of cyber standards: Cyber risk governance; 
cyber risk management; internal dependency management; external 
dependency management; and incident response, cyber resilience, and 
situational awareness. Due to the range and complexity of the issues 
addressed in the ANPRM the public comment period was extended until 
February 17, 2017. This action allowed interested persons additional 
time to analyze the proposal and prepare their comments.

* Real Estate Appraisals (3064-AE56)

    The OCC, Board, FDIC, and NCUA (collectively, the Agencies) are 
seeking comment on a proposed rule to amend the agencies' regulations 
regarding appraisals of real estate, adopted pursuant to title XI of 
the Financial Institutions Reform, Recovery, and Enforcement Act of 
1989 (Title XI). Title XI requires the agencies to adopt regulations 
regarding the performance of appraisals used in connection with 
federally related transactions (Title XI appraisals) within the 
jurisdiction of each agency. As discussed below, the agencies received 
comments requesting that the agencies require title XI appraisals for 
fewer transactions as part of a regulatory review process mandated by 
the Economic Growth and Regulatory Paperwork Reduction Act. The 
proposed amendments would increase the threshold level at or below 
which title XI appraisals are not required for commercial real estate 
loans to $400,000, as defined in this regulation. For commercial real 
estate loans below the threshold, the amended rule would require 
institutions to obtain an evaluation of the real property collateral 
consistent with safe and sound banking practices, if the institution 
does not obtain a title XI appraisal. The agencies also propose to 
amend their appraisal regulations to require that appraisals for 
federally related transactions are subject to appropriate review for 
compliance with the Uniform Standards of Professional Appraisal 
Practice, as required by an amendment to title XI included in section 
1473(e) of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act.

* Management Official Interlocks (3064-AE57)

    The OCC, Board, and the FDIC are seeking comment on a joint 
proposed rule to revise their respective regulations that implement the 
Depository Institution Management Interlocks Act (DIMIA). The proposed 
rule would adjust asset thresholds for the DIMIA major asset 
prohibition, which prohibits management officials for depository 
institutions with assets in excess of specified levels from engaging in 
management interlocks (an individual may not serve as an official of 
two unaffiliated depository institutions with assets in excess of the 
specified levels). The levels are currently set at $2.5 billion and 
$1.5 billion. Based on inflation or market changes, current inflation 
adjusted thresholds would be $3.6 billion and $2.16 billion.

* Community Reinvestment Act Regulations (3064-AE58)

    The Office of the Comptroller of the Currency, Board of Governors 
of the Federal Reserve System, and the Federal Deposit Insurance 
Corporation propose (1) To amend their regulations implementing the 
Community Reinvestment Act to update the existing definitions of home 
mortgage loan and consumer loan, related cross references, and the 
public file content requirements to reflect recent revisions made by 
the Consumer Financial Protection Bureau to Regulation C, which 
implements the Home Mortgage Disclosure Act, and (2) to remove obsolete 
references to the Neighborhood Stabilization Program.

Regulatory Capital Rules: Simplification of Generally Applicable Rules 
(3064-AE59)

    The OCC, Board, and FDIC (the Agencies) seek comment on a joint 
proposed rule to revise the generally applicable capital rules with the 
goal of meaningfully reducing regulatory burden on community banking 
organizations while at the same time maintaining safety and soundness 
and the quality and quantity of regulatory capital in the banking 
system. The proposal includes (1) Replacing the framework's complex 
treatment of high volatility commercial real estate (HVCRE) exposures 
with a more straightforward treatment for most acquisition, 
development, or construction (ADC) loans; (2) simplifying the current 
regulatory capital treatment for mortgage servicing assets (MSAs), 
timing difference deferred tax assets (DTAs), and holdings of 
regulatory capital instruments issued by financial institutions; and 
(3) simplifying the current limitations on minority interests in 
regulatory capital.

* Reporting and Recordkeeping Requirements for Covered Trading 
Activities (3064-AE60)

    The OCC, Board, FDIC, CFTC, and SEC are requesting comment on a 
proposed rule that would modify the reporting and recordkeeping 
requirements for covered trading activities under appendix A of the 
final rule implementing section 13 of the Bank Holding Company Act of 
1956, which was added by section 619 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act. The Agencies adopted a final rule 
implementing section 13 that became effective on April 1, 2014. In 
appendix A of the final rule, the Agencies said they would review the 
data collected and revise the collection requirement as appropriate

[[Page 40439]]

based on a review of the data collected prior to September 30, 2015.

* Source of Strength (3064-AE61)

    The OCC, Board, and FDIC (the appropriate Federal banking agencies) 
are developing a joint Notice of Proposed Rulemaking which will be 
published in the Federal Register. The rule, when finalized, will 
implement section 616(d) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank Act). That section of the Dodd-
Frank Act requires the appropriate Federal banking agencies to jointly 
issue final rules that ensure that parent companies of subsidiary 
insured depository institutions serve as a source of financial strength 
for such institutions.

Final Rule Stage

Net Stable Funding Ratio: Liquidity Risk Measurement Standards and 
Disclosure Requirements (3064-AE44)

    The Office of the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, and the Federal Deposit 
Insurance Corporation invited comment on a proposed rule that would 
implement a stable funding requirement, the net stable funding ratio 
(NSFR), for large and internationally active banking organizations. The 
proposed NSFR requirement is designed to reduce the likelihood that 
disruptions to a banking organization's regular sources of funding will 
compromise its liquidity position, as well as to promote improvements 
in the measurement and management of liquidity risk. The proposed rule 
would also amend certain definitions in the liquidity coverage ratio 
rule that are also applicable to the NSFR. The proposed NSFR 
requirement would apply beginning on January 1, 2018, to bank holding 
companies, certain savings and loan holding companies, and depository 
institutions that, in each case, have $250 billion or more in total 
consolidated assets or $10 billion or more in total on-balance sheet 
foreign exposure, and to their consolidated subsidiaries that are 
depository institutions with $10 billion or more in total consolidated 
assets. In addition, the Board proposed a modified NSFR requirement for 
bank holding companies and certain savings and loan holding companies 
that, in each case, have $50 billion or more, but less than $250 
billion, in total consolidated assets and less than $10 billion in 
total on-balance sheet foreign exposure. Neither the proposed NSFR 
requirement nor the proposed modified NSFR requirement would apply to 
banking organizations with consolidated assets of less than $50 billion 
and total on-balance sheet foreign exposure of less than $10 billion. A 
bank holding company or savings and loan holding company subject to the 
proposed NSFR requirement or modified NSFR requirement would be 
required to publicly disclose the company's NSFR and the components of 
its NSFR each calendar quarter.

* Restrictions on Qualified Financial Contracts of Certain FDIC-
Supervised Institutions; Revisions to the Definition of Qualifying 
Master Netting Agreement and Related Definitions (3064-AE46)

    The FDIC is proposing to add a new part 382 to its rules to improve 
the resolvability of systemically important U.S. banking organizations 
and systemically important foreign banking organizations and enhance 
the resilience and the safety and soundness of certain state savings 
associations and state-chartered banks that are not members of the 
Federal Reserve System (state non-member banks or SNMBs) for which the 
FDIC is the primary federal regulator (together, FSIs or FDIC-
supervised institutions). Under this proposed rule, covered FSIs would 
be required to ensure that covered qualified financial contracts (QFCs) 
to which they are a party provide that any default rights and 
restrictions on the transfer of the QFCs are limited to the same extent 
as they would be under the Dodd-Frank Wall Street Reform and Consumer 
Protection Act and the Federal Deposit Insurance Act. In addition, 
covered FSIs would generally be prohibited from being party to QFCs 
that would allow a QFC counterparty to exercise default rights against 
the covered FSI based on the entry into a resolution proceeding under 
the Dodd-Frank Act, FDI Act, or any other resolution proceeding of an 
affiliate of the covered FSI.
    The proposal would also amend the definition of qualifying master 
netting agreement in the FDIC's capital and liquidity rules, and 
certain related terms in the FDIC's capital rules. These proposed 
amendments are intended to ensure that the regulatory capital and 
liquidity treatment of QFCs to which a covered FSI is party would not 
be affected by the proposed restrictions on such QFCs. The requirements 
of this proposed rule are substantively identical to those contained in 
notice of proposed rulemaking issued by the Board of Governors of the 
Federal Reserve System on May 3, 2016, regarding covered entities, and 
the notice of proposed rulemaking issued by the Office of the 
Comptroller of the Currency on August 19, 2016, regarding covered 
banks.

* Removal of Transferred OTS Regulations Regarding Minimum Security 
Procedures Amendments (3064-AE47)

    The Federal Deposit Insurance Corporation proposed to rescind and 
remove a part from the Code of Federal Regulations entitled Security 
Procedures and to amend FDIC regulations to make the removed Office of 
Thrift Supervision regulations applicable to State savings 
associations.

* Removal of Transferred OTS Regulations Regarding Consumer Protection 
in Sales of Insurance and Amendments to FDIC Consumer Protection in 
Sales of Insurance Regulation (3064-AE49)

    The Federal Deposit Insurance Corporation (FDIC) proposed to 
rescind and remove from the Code of Federal Regulations 12 CFR part 
390, subpart I, entitled Consumer Protection in Sales of Insurance. 
This subpart was included in the regulations that were transferred to 
the FDIC from the Office of Thrift Supervision on July 21, 2011, in 
connection with the implementation of applicable provisions of title 
III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. 
The requirements for State savings associations in part 390, subpart I 
are substantively similar to the requirements in the FDIC's 12 CFR part 
343, which is also entitled Consumer Protection in Sales of Insurance 
and is applicable for all insured depository institutions (IDIs) for 
which the FDIC has been designated the appropriate Federal banking 
agency.
    The FDIC proposed to rescind in its entirety part 390, subpart I 
and to modify the scope of part 343 to include State savings 
associations and their subsidiaries to conform to and reflect the scope 
of the FDIC's current supervisory responsibilities as the appropriate 
Federal banking agency. The FDIC also proposed to define FDIC-
supervised insured depository institution or institution and State 
savings association. Finally, the FDIC proposed to transfer an 
anticoercion and antitying provision from part 390, subpart I that is 
applicable to State savings associations. Upon removal of part 390, 
subpart I, the Consumer Protection in Sales of Insurance, regulations 
applicable for all IDIs for which the FDIC has been designated the 
appropriate Federal banking agency will be found at 12 CFR part 343.

[[Page 40440]]

* Loans in Areas Having Special Flood Hazards--Private Flood Insurance 
(3064-AE50)

    The Office of the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, the Federal Deposit Insurance 
Corporation, the Farm Credit Administration, and the National Credit 
Union Administration have issued a new proposal to amend their 
regulations regarding loans in areas having special flood hazards to 
implement the private flood insurance provisions of the Biggert-Waters 
Flood Insurance Reform Act of 2012. Specifically, the proposed rule 
would require regulated lending institutions to accept policies that 
meet the statutory definition of private flood insurance in the 
Biggert-Waters Act and permit regulated lending institutions to accept 
flood insurance provided by private insurers that does not meet the 
statutory definition of private flood insurance on a discretionary 
basis, subject to certain restrictions.

* Regulatory Capital Rules: To Rescind the FDIC's Capital Rules That 
Are No Longer Effective Following the Implementation of Capital Rules 
Consistent With Basel III (3064-AE51)

    This final rule rescinds the capital regulations in part 325 and 
subparts Y and Z of part 390 of the FDIC's codified rules (the 
superseded capital rules) that were no longer effective following the 
January 1, 2015, implementation of the capital rules consistent with 
the Basel III initiatives. The final rule also makes conforming changes 
to sections in the FDIC's codified rules that refer to the superseded 
capital rules. The FDIC has concluded that good cause exists to publish 
this rule as final without a period of notice and comment and with an 
effective date as of the date of its publication in the Federal 
Register because this rule rescinds the superseded capital rules and 
other sections of the FDIC's codified rules that refer to the 
superseded capital rules and imposes no new requirement on FDIC-
supervised institutions.

* Revision of the FDIC's Freedom of Information Act Regulations (3064-
AE53)

    This rule amends the Federal Deposit Insurance Corporation's 
regulations under the Freedom of Information Act (FOIA) to incorporate 
certain changes made to the FOIA by the FOIA Improvement Act of 2016. 
In addition, this rule amends certain provisions to reflect changes 
brought about by prior amendments to the FOIA that had been 
incorporated into Agency practice and corrects inaccurate contact 
information and adjusts numbering and lettering of current provisions 
because of additions to the regulations.

* Recordkeeping Requirements for Qualified Financial Contracts (3064-
AE54)

    The FDIC proposes to amend its regulations regarding Recordkeeping 
Requirements for Qualified Financial Contracts (Part 371) which 
requires insured depository institutions (IDIs) in a troubled condition 
to keep records relating to qualified financial contracts (QFCs) to 
which they are party. The proposed rule would (i) Simplify QFC 
recordkeeping for large banks by aligning requirements with the rule of 
the US Treasury governing QFC recordkeeping of certain non-bank 
affiliates; (ii) require such large banks to keep QFC records of 
certain of their subsidiaries; (iii) for all other IDIs subject to part 
371, add and delete a limited number of data requirements and make 
certain formatting changes with respect to the QFC recordkeeping 
requirements; (iv) provide additional time for certain IDIs in a 
troubled condition to comply with part 371; and (v) include certain 
other changes, including changes relating to certain extension 
procedures and clarifications relating to the timing for creation of 
daily records.

Long-Term Actions

Incentive-Based Compensation Arrangements (3064-AD86)

    The OCC, Board, FDIC, FHFA, NCUA, and SEC (the Agencies) sought 
comment on a joint proposed rule to revise the proposed rule the 
Agencies published in the Federal Register on April 14, 2011, and to 
implement section 956 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act. Section 956 generally requires that the Agencies 
jointly issue regulations or guidelines: (1) Prohibiting incentive-
based payment arrangements that the Agencies determine encourage 
inappropriate risks by certain financial institutions by providing 
excessive compensation or that could lead to material financial loss; 
and (2) requiring those financial institutions to disclose information 
concerning incentive-based compensation arrangements to the appropriate 
Federal regulator.

Treatment of Certain Collateralized Debt Obligations Backed Primarily 
by Trust Preferred Securities; Prohibitions and Restrictions on Certain 
Interests in Hedge Funds and Private Equity Funds (3064-AE11)

    The Office of the Comptroller of the Currency, the Federal Reserve 
Board, the Federal Deposit Insurance Corporation, the U.S. Commodity 
Futures Trading Commission, and the Securities Exchange Commission 
(individually, an Agency, and collectively, the Agencies) will be 
adopting an interim final rule that would permit banking entities to 
retain investments in certain pooled investment vehicles that invested 
their offering proceeds primarily in trust preferred or subordinated 
debt securities issued by community banking organizations of the type 
grandfathered under section 171 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act. The interim final rule is a companion rule 
to the final rules adopted by the Agencies to implement section 13 of 
the Bank Holding Company Act of 1956, which was added by section 619 of 
the Dodd-Frank Act.

Removal of Transferred Office of Thrift Supervision Regulations 
Regarding Lending and Investment and Amendments to FDIC Rules and 
Regulations (3064-AE22)

    In this rulemaking, the Federal Deposit Insurance Corporation 
(FDIC) will be proposing to rescind and remove from the Code of Federal 
Regulations 12 CFR part 390, subpart P, entitled Lending and Investment 
(part 390, subpart P). This subpart was included in the regulations 
that were transferred to the FDIC from the Office of Thrift Supervision 
on July 21, 2011, in connection with the implementation of applicable 
provisions of title III of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act. Upon removal of part 390, subpart P, all 
insured depository institutions for which the FDIC is the appropriate 
Federal banking agency will follow the safety and soundness standards 
contained in 12 CFR part 364 of the FDIC's Rules and Regulations and 
the real-estate lending standards found in 12 CFR part 365 of the 
FDIC's Rules.

Transferred Office of Thrift Supervision Regulations Regarding 
Fiduciary Powers of State Savings Associations (3064-AE23)

    The Federal Deposit Insurance Corporation (FDIC) will be proposing 
to rescind and remove from the Code of Federal Regulations 12 CFR part 
390

[[Page 40441]]

subpart J, entitled Fiduciary Powers of State Savings Associations and 
all references thereto, and amend certain sections of 12 CFR parts 333 
and 303 regarding consent to exercise trust powers to reflect their 
applicability to State savings associations. Part 390 subpart J was 
included in the regulations that were transferred to the FDIC from the 
Office of Thrift Supervision on July 21, 2011, in connection with the 
implementation of applicable provisions of title III of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act. Upon removal of part 
390 subpart J from the FDIC rules and regulations and adopting of the 
amendment to parts 333 and 303 proposed herein, all State nonmember 
banks and State savings associations seeking consent to exercise trust 
powers not previously granted by its chartering authority will be 
required to comply with FDIC rules governing applications for consent 
to exercise trust powers.

Alternatives to Credit Ratings With Respect to Permissible Activities 
for Foreign Branches of Insured State Nonmember Banks and Pledge of 
Assets by Insured Domestic Branches of Foreign Banks (3064-AE36)

    The FDIC sought public comment on a proposed rule to amend its 
international banking regulations (Part 347) consistent with section 
939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(Dodd-Frank Act) and the FDIC's authority under section 5(c) of the 
Federal Deposit Insurance Act. Section 939A directs each Federal agency 
to review and modify regulations that reference credit ratings. The 
rule would amend the provisions of subparts A and B of part 347 that 
reference credit ratings. Subpart A, which sets forth the FDIC's 
requirements for insured State nonmember banks that operate foreign 
branches, would be amended to replace references to credit ratings in 
the definition of ``investment grade'' with a standard of 
creditworthiness that has been adopted in other Federal regulations 
that conform with section 939A. Subpart B would be amended to revise 
the FDIC's asset pledge requirement for insured U.S. branches of 
foreign banks. The eligibility criteria for the types of assets that 
foreign banks may pledge would be amended by replacing the references 
to credit ratings with the revised definition of investment grade. The 
rule would apply this investment grade standard to each type of 
pledgeable asset, establish a liquidity requirement for such assets, 
and subject them to a fair value discount. The proposed rule would also 
introduce cash as a new asset type that foreign banks may pledge under 
subpart B and create a separate asset category expressly for debt 
securities issued by government sponsored enterprises.

Covered Broker-Dealer Provisions Under Title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (3064-AE39)

    The Federal Deposit Insurance Corporation and the Securities and 
Exchange Commission, in accordance with section 205(h) of the Dodd-
Frank Wall Street Reform and Consumer Protection Act, jointly proposed 
a rule to implement provisions applicable to the orderly liquidation of 
covered brokers and dealers under title II of the Dodd-Frank Act.

Completed Actions

Regulatory Capital Rules, Liquidity Coverage Ratio: Revisions to the 
Definition of Qualifying Master Netting Agreement and Related 
Definitions (3064-AE30)

    The FDIC is adopting a final rule that amends the definition of 
qualifying master netting agreement under the regulatory capital rules 
and the liquidity coverage ratio rule. In this final rule, the FDIC 
also is amending the definitions of collateral agreement, eligible 
margin loan, and repo-style transaction under the regulatory capital 
rules. These amendments are designed to ensure that the regulatory 
capital and liquidity treatment of certain financial contracts 
generally would not be affected by implementation of special resolution 
regimes in non-U.S. jurisdictions that are substantially similar to the 
U.S. resolution framework or by changes to the International Swaps and 
Derivative Association Master Agreement that provide for contractual 
submission to such regimes. The Office of the Comptroller of the 
Currency and the Board of Governors of the Federal Reserve System 
issued in December 2014, a joint interim final rule that is 
substantially identical to this final rule.

Recordkeeping for Timely Deposit Insurance Determination (3064-AE33)

    The FDIC is adopting a final rule to facilitate prompt payment of 
FDIC-insured deposits when large insured depository institutions fail. 
The final rule requires each insured depository institution that has 
two million or more deposit accounts to (1) Configure its information 
technology system to be capable of calculating the insured and 
uninsured amount in each deposit account by ownership right and 
capacity, which would be used by the FDIC to make deposit insurance 
determinations in the event of the institution's failure, and (2) 
maintain complete and accurate information needed by the FDIC to 
determine deposit insurance coverage with respect to each deposit 
account, except as otherwise provided.

Expanded Examination Cycle for Certain Small Insured Depository 
Institutions and U.S. Branches and Agencies of Foreign Banks (3064-
AE42)

    The Office of the Comptroller of the Currency, the Federal Reserve 
System, and the Federal Deposit Insurance Corporation (collectively, 
the Agencies) are jointly adopting as final and without change the 
agencies' interim final rules published in the Federal Register on 
February 29, 2016, that implemented section 83001 of the Fixing 
America's Surface Transportation Act (FAST Act). Section 83001 of the 
FAST Act permits the agencies to conduct a full-scope, onsite 
examination of qualifying insured depository institutions with less 
than $1 billion in total assets no less than once during each 18-month 
period. Prior to enactment of the FAST Act, only qualifying insured 
depository institutions with less than $500 million in total assets 
were eligible for an 18-month on-site examination cycle. The final 
rules, like the interim final rules, generally allow well capitalized 
and well managed institutions with less than $1 billion in total assets 
to benefit from the extended 18-month examination schedule. In 
addition, the final rules adopt as final parallel changes to the 
agencies' regulations governing the onsite examination cycle for U.S. 
branches and agencies of foreign banks, consistent with the 
International Banking Act of 1978. Finally, through this rulemaking, 
the FDIC has integrated its regulations regarding the frequency of 
safety and soundness examinations for State nonmember banks and State 
savings associations.

* Guidelines Establishing Standards for Corporate Governance and Risk 
Management for Covered Institutions With Average Total Consolidated 
Assets of $10 Billion or More (3064-AE48)

    To improve corporate governance and risk management at insured 
State banks, State savings associations, and insured State branches of 
foreign banks that have average total consolidated assets of $10 
billion or more, the FDIC is proposing to issue new corporate 
governance and risk management guidelines under its safety and 
soundness authority provided by section 39 of the Federal Deposit 
Insurance Act. The proposed Guidelines

[[Page 40442]]

would be enforceable under section 39. The FDIC also proposes to amend 
parts 308 and 364 of its regulations to implement the proposed 
Guidelines.

* Rules of Practice and Procedure (3064-AE52)

    The Federal Deposit Insurance Corporation is adjusting the maximum 
amount of each civil money penalty within its jurisdiction to account 
for inflation. This action is required by the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015. The FDIC is also 
amending its rules of practice and procedure under 12 CFR part 308 to 
cross-reference the annual adjustments that will be published in the 
Federal Register and to correct a technical error from the previous 
inflation-adjustment rulemaking.

* Disclosure and Reporting of CRA-Related Agreements (3064-AE55)

    The Office of the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, and the Federal Deposit 
Insurance Corporation (collectively, the Agencies) are inviting comment 
on a notice of proposed rulemaking that would amend the Agencies' rules 
on disclosure and reporting of Community Reinvestment Act-related 
agreements to remove the quarterly reporting requirement and an 
obsolete provision.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.

       Federal Deposit Insurance Corporation--Proposed Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
374.......................  12 CFR 324 Regulatory              3064-AE59
                             Capital Rules:
                             Simplification of
                             Generally Applicable
                             Rules.
------------------------------------------------------------------------

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)

Proposed Rule Stage

374.  Regulatory Capital Rules: Simplification of Generally 
Applicable Rules

    Legal Authority: 12 U.S.C. 1819(a)(Tenth); 12 U.S.C. 1831o; 12 
U.S.C. 3907; 12 U.S.C. 5371
    Abstract: The OCC, Board, and FDIC (the Agencies) seek comment on a 
joint proposed rule to revise the generally applicable capital rules 
with the goal of meaningfully reducing regulatory burden on community 
banking organizations while at the same time maintaining safety and 
soundness and the quality and quantity of regulatory capital in the 
banking system. The proposal includes (1) Replacing the framework's 
complex treatment of high volatility commercial real estate (HVCRE) 
exposures with a more straightforward treatment for most acquisition, 
development, or construction (ADC) loans; (2) simplifying the current 
regulatory capital treatment for mortgage servicing assets (MSAs), 
timing difference deferred tax assets (DTAs), and holdings of 
regulatory capital instruments issued by financial institutions; and 
(3) simplifying the current limitations on minority interests in 
regulatory capital.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   09/00/17  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Bobby R. Bean, Associate Director, Federal Deposit 
Insurance Corporation, 550 17th Street NW., Washington, DC 20429, 
Phone: 202 898-3575, Email: bbean@fdic.gov.
    Ryan Billingsley, Chief, Capital Policy Section, Federal Deposit 
Insurance Corporation, 550 17th Street NW., Washington, DC 20429, 
Phone: 202 898-3797, Email: rbillingsley@fdic.gov.
    Benedetto Bosco, Chief, Capital Policy Section, Federal Deposit 
Insurance Corporation, 550 17th Street NW., Washington, DC 20459, 
Phone: 202 898-6853, Email: bbosco@fdic.gov.
    Michael Phillips, Counsel, Federal Deposit Insurance Corporation, 
550 17th Street NW., Washington, DC 20429, Phone: 202 898-3581, Email: 
mphillips@fdic.gov.
    Rachel J. Ackmann, Senior Attorney, Federal Deposit Insurance 
Corporation, 550 17th Street NW., Washington, DC 20429, Phone: 202 898-
6858, Email: rackmann@fdic.gov.
    Catherine S. Wood, Counsel, Federal Deposit Insurance Corporation, 
550 17th Street NW., Washington, DC 20459, Phone: 202 898-3788, Email: 
cawood@fdic.gov.
    RIN: 3064-AE59

[FR Doc. 2017-17016 Filed 8-23-17; 8:45 am]
 BILLING CODE 6714-01-P