Federal Deposit Insurance Corporation March 2020 – Federal Register Recent Federal Regulation Documents

Regulatory Capital Rule: Revised Transition of the Current Expected Credit Losses Methodology for Allowances
Document Number: 2020-06770
Type: Rule
Date: 2020-03-31
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions, Federal Reserve System, Department of Treasury, Office of the Comptroller of the Currency
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 an interim final rule that delays the estimated impact on regulatory capital stemming from the implementation of Accounting Standards Update No. 2016-13, Financial InstrumentsCredit Losses, Topic 326, Measurement of Credit Losses on Financial Instruments (CECL). The interim final rule provides banking organizations that implement CECL before the end of 2020 the option to delay for two years an estimate of CECL's effect on regulatory capital, relative to the incurred loss methodology's effect on regulatory capital, followed by a three-year transition period. The agencies are providing this relief to allow such banking organizations to better focus on supporting lending to creditworthy households and businesses in light of recent strains on the U.S. economy as a result of the coronavirus disease 2019 (COVID- 19), while also maintaining the quality of regulatory capital.
Standardized Approach for Calculating the Exposure Amount of Derivative Contracts
Document Number: 2020-06755
Type: Rule
Date: 2020-03-31
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions, Federal Reserve System, Department of Treasury, Office of the Comptroller of the Currency
In light of recent economic disruptions caused by the COVID-19 virus and recent volatility in U.S. financial markets, 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 issuing a document to allow depository institutions and depository institution holding companies to implement the final rule titled Standardized Approach for Calculating the Exposure Amount of Derivative Contracts (SA-CCR rule) for the first quarter of 2020, on a best efforts basis.
Parent Companies of Industrial Banks and Industrial Loan Companies
Document Number: 2020-06153
Type: Proposed Rule
Date: 2020-03-31
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions
The Federal Deposit Insurance Corporation is seeking comment on a proposed rule that would require certain conditions and commitments for each deposit insurance application approval, non- objection to a change in control notice, and merger application approval that would result in an insured industrial bank or industrial loan company becoming, after the effective date of any final rule, a subsidiary of a company that is not subject to consolidated supervision by the Federal Reserve Board. The proposed rule also would require that before any industrial bank or industrial loan company may become a subsidiary of a company that is not subject to consolidated supervision by the Federal Reserve Board, such company and the industrial bank or industrial loan company must enter into one or more written agreements with the Federal Deposit Insurance Corporation.
Regulatory Capital Rule: Money Market Mutual Fund Liquidity Facility
Document Number: 2020-06156
Type: Rule
Date: 2020-03-23
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions, Federal Reserve System, Department of Treasury, Office of the Comptroller of the Currency
To provide liquidity to the money market sector to help stabilize the financial system, the Board of Governors of the Federal Reserve System authorized the Federal Reserve Bank of Boston to establish the Money Market Mutual Fund Liquidity Facility (MMLF), pursuant to section 13(3) of the Federal Reserve Act. Under the MMLF, the Federal Reserve Bank of Boston will extend non-recourse loans to eligible financial institutions to purchase certain types of assets from money market mutual funds (MMFs). To facilitate this Federal Reserve lending program, the Board, OCC and FDIC (together, the agencies) are adopting this interim final rule to allow banking organizations to neutralize the regulatory capital effects of participating in the program. This treatment would extend to the community bank leverage ratio.
Regulatory Capital Rule: Eligible Retained Income
Document Number: 2020-06051
Type: Rule
Date: 2020-03-20
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions, Federal Reserve System, Office of the Comptroller of the Currency, Department of Treasury, Department of the Treasury
In light of recent disruptions in economic conditions caused by the coronavirus disease 2019 (COVID-19) and current strains in U.S. financial markets, the Board, OCC and FDIC (together, the agencies) are issuing an interim final rule that revises the definition of eligible retained income for all depository institutions, bank holding companies, and savings and loan holding companies subject to the agencies' capital rule (together, a banking organization or banking organizations). The revised definition of eligible retained income will make any automatic limitations on capital distributions that could apply under the agencies' capital rules more gradual.
Regulatory Capital Rule: Capital Simplification for Qualifying Community Banking Organizations; Correction
Document Number: 2020-05441
Type: Rule
Date: 2020-03-20
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions
The Federal Deposit Insurance Corporation (FDIC) is correcting an interagency final rule that appeared in the Federal Register on November 13, 2019, regarding the final rule titled ``Regulatory Capital Rule: Capital Simplification for Qualifying Community Banking Organizations.'' These corrections are necessary to conform a footnote citation in the FDIC's amendment to its codified appendix for the Interagency Guidelines for Real Estate Lending Policies with the footnote citation in the regulations of the other federal banking agencies that issued that final rule.
Sunshine Act Meeting; Notice of Cancellation of Agency Meeting
Document Number: 2020-05846
Type: Notice
Date: 2020-03-19
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions
Guidance for Resolution Plan Submissions of Certain Foreign-Based Covered Companies
Document Number: 2020-05513
Type: Notice
Date: 2020-03-18
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions, Federal Reserve System
The Board and the FDIC (together, the ``agencies'') are inviting comments on proposed guidance for the 2021 and subsequent resolution plan submissions by certain foreign banking organizations (``FBOs''). The proposed guidance is meant to assist these firms in developing their resolution plans, which are required to be submitted pursuant to Section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the ``Dodd-Frank Act''). The scope of application of the proposed guidance would be FBOs that are triennial full filers and whose intermediate holding companies (``U.S. IHCs'') have a score of 250 or more under the second methodology (``method 2'') of the global systemically important bank (``GSIB'') surcharge framework. The proposed guidance, which is largely based on prior guidance, describes the agencies' expectations regarding a number of key vulnerabilities in plans for a rapid and orderly resolution under the U.S. Bankruptcy Code (i.e., capital; liquidity; governance mechanisms; operational; legal entity rationalization and separability; and derivatives and trading activities). The proposed guidance also updates certain aspects of prior guidance based, in part, on the agencies' review of certain FBOs' most recent resolution plan submissions and changes to the resolution planning rule. The agencies invite public comment on all aspects of the proposed guidance.
Agency Information Collection Activities: Proposed Collection Renewal; Comment Request
Document Number: 2020-05455
Type: Notice
Date: 2020-03-17
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions
The FDIC, as part of its obligations under the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to take this opportunity to comment on the renewal of the existing information collections described below (OMB Control No. 3064-0057; -0112; -0127; -0140; -0175; -0198).
Sunshine Act Meeting
Document Number: 2020-05376
Type: Notice
Date: 2020-03-13
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions
Extension of Comment Period; Request for Information on FDIC Sign and Advertising Requirements and Potential Technological Solutions
Document Number: 2020-05127
Type: Notice
Date: 2020-03-13
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions
On February 26, 2020, the Federal Deposit Insurance Corporation (FDIC) published in the Federal Register a request for information (RFI) seeking input regarding potential modernization of its sign and advertising rules to reflect that deposit-taking via physical branch, digital, and mobile banking channels continues to evolve since the FDIC last significantly updated its rules in 2006. The FDIC has determined that an extension of the comment period until April 20, 2020, is appropriate.
Securitization Safe Harbor Rule
Document Number: 2020-02936
Type: Rule
Date: 2020-03-04
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions
The FDIC is amending its securitization safe harbor rule, which relates to the treatment of financial assets transferred in connection with a securitization transaction, in order to eliminate a requirement that the securitization documents require compliance with Regulation AB of the Securities and Exchange Commission in circumstances where Regulation AB by its terms would not apply to the issuance of obligations backed by such financial assets.