tag:blogger.com,1999:blog-86819881203615860932018-05-11T14:09:04.136-04:00ABA Dodd-Frank TrackerABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.comBlogger556125tag:blogger.com,1999:blog-8681988120361586093.post-77023496499997568192017-08-23T10:30:00.000-04:002017-08-23T10:30:51.954-04:00In First Step to Simplify Capital Rules, Agencies Pause Basel III Phase-In for Most Banks<span style="font-family: Arial, sans-serif; font-size: 10pt;">The Federal Reserve, FDIC and OCC issued a proposed rule that would pause the transition to the Basel III capital framework for banks not using the Basel advanced approaches. The rule comes as regulators are working on a broader effort to simplify the regulatory capital rules for non-advanced approaches banks as has been long advocated by ABA and championed in the Treasury Department report on financial reform.<br /><br />“As part of the recent review of regulations under the Economic Growth and Regulatory Paperwork Reduction Act, the agencies announced that they are developing a proposal that would simplify the capital rules to reduce regulatory burden, particularly for community banks,” the agencies said. “That proposal would simplify the capital rules' treatment of mortgage servicing assets and other items. However, under the current capital rules, the transitional treatment for those items is scheduled to be replaced with a different treatment on Jan. 1, 2018.”<br /><br />The proposed rule would pause the full transition to the Basel III treatment of mortgage servicing assets, certain deferred tax assets, investments in the capital of unconsolidated financial institutions and minority interests pending a new rulemaking addressing these topics. Since advanced approaches are principally used by banking organizations with over $250 billion in assets or foreign bank subsidiaries with over $10 billion in assets, the pause would apply broadly to community, midsize and even several regional banks.<br /><br />ABA plans to comment on the proposal and will strongly urge the agencies to include the advanced approaches banks in both the extended transition period and the future rulemaking simplifying the capital framework. Comments on the proposed pause are due 30 days after the rule is published in the Federal Register.<br /><br /><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-082317-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=9559&elqTrackId=fde45e6014f94234bdc1df5084b475d0&elq=7470810d88b7422caae234fa2fdeaa5f&elqaid=16978&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Read the proposed rule</span></strong></a>.<br /><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-082317-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8690&elqTrackId=2b8503c43f0f4f3a924e2bc87d825168&elq=7470810d88b7422caae234fa2fdeaa5f&elqaid=16978&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Read ABA's June letter urging a Basel III pause</span></strong></a>.<br /><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-082317-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=7561&elqTrackId=ee63a9da8d51477ba893729dab68d708&elq=7470810d88b7422caae234fa2fdeaa5f&elqaid=16978&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Read ABA's white paper on regulatory capital reform</span></strong></a>.</span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com23tag:blogger.com,1999:blog-8681988120361586093.post-65503249373440207692017-08-15T09:29:00.000-04:002017-08-15T09:29:12.659-04:00Agencies Clarify Capital Treatment of Centrally Cleared Derivatives Contracts<span style="font-family: "arial" , sans-serif; font-size: 10pt;">The federal regulatory agencies issued joint guidance on the regulatory capital treatment of certain centrally cleared derivative contracts in light of recent changes to the rulebooks of certain central counterparties. The guidance specifically addresses the regulatory capital treatment of variation margin requirements for such centrally cleared derivative contracts and will result in more beneficial regulatory capital treatment for centrally cleared derivative contracts. <br /><br />Previously, variation margin transferred to cover the exposure that arises from marking such centrally cleared derivatives contracts to market price was considered collateral pledged by one party to the other, with title to the collateral remaining with the posting party. However, under the central counterparties’ revised rulebooks, such variation margin for centrally cleared derivative contracts is considered a settlement payment for the exposure, with title to the payment transferring to the receiving party. <br /><br />Under the guidance, if banks, after conducting accounting and legal analysis, determine that variation margin payments may be considered settlement of outstanding exposure under the regulatory capital rules, and that the payer of the variation margin has relinquished all legal claims to the variation margin, then variation margin would no longer be considered collateral pledged by one party to the other. ABA has long advocated for more risk-based bank regulatory capital treatment for centrally cleared derivative contracts. </span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-081517-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=9456&elqTrackId=303302db744e47d3a2a417b7f022720f&elq=ba96bfe0e117459babd9ba10647d4d56&elqaid=16929&elqat=1" target="_blank">Read the guidance</a></span></strong>.</span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-10229426427302031782017-08-04T10:30:00.000-04:002017-08-04T10:30:33.333-04:00This Week Ahead: August 7-11<div><b>Monday</b></div><ul><li>Comments Due DOE: <b>Federal Direct Loan Program and Federal Family Education Loan Program Teacher Loan Forgiveness Forms</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-07-06/pdf/2017-14132.pdf" target="_blank">Read more.</a></li><li>Comments Due EBSA: <b>Request for Information Regarding the Fiduciary Rule and Prohibited Transaction Exemptions</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-07-06/pdf/2017-14101.pdf" target="_blank">Read more.</a></li><li>Comments Due FRB: <b>Annual Daylight Overdraft Capital Report for U.S. Branches and Agencies of Foreign Banks</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-07-07/pdf/2017-14259.pdf" target="_blank">Read more.</a></li></ul><div><b>Tuesday</b></div><ul><li>Comments Due FRB: <b>Capital Assessments and Stress Testing (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-06-09/pdf/2017-12009.pdf" target="_blank">Read more.</a></li></ul>All times in Eastern Standard Time. See future events on the <a href="http://regreformtracker.aba.com/p/dodd-frank-calendar.html" target="_blank">Dodd-Frank Calendar</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com6tag:blogger.com,1999:blog-8681988120361586093.post-91811031208789766022017-08-04T09:30:00.000-04:002017-08-04T09:30:23.583-04:00Fed Proposes New SIFI Risk Rating System<span style="font-family: Arial, sans-serif; font-size: 10pt;">The Fed proposed a new supervisory rating scale for large bank holding companies with more than $50 billion in assets. The Fed is seeking to better harmonize the ratings system with its existing supervisory program, while providing clarity and consistency around its supervisory expectations and the consequences of supervisory ratings. <br /><br />The new scale would assign ratings for capital planning, liquidity risk management and governance and controls. Banks would be assigned ratings in each category, rather than receiving a standalone composite rating. Each category must be highly rated for the bank holding company to be considered “well-managed.” <br /><br />ABA is reviewing the proposal to determine the extent to which it provides a more tailored and sensitive rating system. Bankers are invited to provide feedback on the proposal and whether further adjustments are needed. </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20170803a2.pdf" target="_blank">Read the proposal</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-78098295287905471652017-08-02T10:45:00.000-04:002017-08-02T10:45:05.652-04:00ABA Seeks to Inform Regulator-Led Exam Modernization Effort<span style="font-family: Arial, sans-serif; font-size: 10pt;">In a March 2017 report on regulatory burden reduction, the federal banking agencies committed to review parts of their safety and soundness exam process. ABA is working to ensure that this regulator-led review is informed by banker perspectives early in the process. To that end, ABA recently hosted two conference calls with bankers to discuss ways to improve the exam process, streamline exam reports, and make the Uniform Bank Performance Report more accessible and informative. <br /><br />ABA invited regulators to listen in on both calls to hear these banker perspectives directly. The association will continue working to facilitate an open dialogue between banks and regulators as the exam modernization effort moves forward, as it did for a similar effort to modernize the Call Report. Bankers are invited to submit their specific ideas on how to improve the safety and soundness exam process, exam report or UBPR. </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-080217-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=9281&elqTrackId=963981fdd8da4758979f506380c71ae3&elq=0706ad47d61542bab2e2fb71951d6281&elqaid=16780&elqat=1" target="_blank">Read the report</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-75220739885575051232017-07-28T09:29:00.000-04:002017-07-28T09:29:26.485-04:00Fed Nominee Quarles ‘Fully Supports’ Tailored Regulation<span style="font-family: Arial, sans-serif; font-size: 10pt;">During his confirmation hearing, Randal Quarles </span><span style="background-color: white; color: #545454; font-family: Roboto, arial, sans-serif; font-size: x-small;">—</span><span style="font-family: Arial, sans-serif; font-size: 10pt;"> President Trump’s nominee to serve as Federal Reserve vice chairman for supervision </span><span style="background-color: white; color: #545454; font-family: Roboto, arial, sans-serif; font-size: x-small;">—</span><span style="font-family: Arial, sans-serif; font-size: 10pt;"> endorsed the concept of tailored supervision that ABA has done much to work into the policy conversation over the past several years. “It makes for better and more efficient regulation,” he said, which in turn “makes it easier for the financial system to support the real economy.” He said he look at tailoring capital requirements as well as other regulations. </span><span style="font-family: Arial, sans-serif; font-size: 10pt;">Quarles also called for more transparency in the Dodd-Frank Act-mandated stress testing and capital planning processes.</span><br /><blockquote class="tr_bq"><span style="font-family: Arial, sans-serif; font-size: 10pt;">I would want that to be a theme of the Federal Reserve’s regulatory activity were I confirmed for this position. An example is the lack of transparency that has surrounded the CCAR stress tests up to now </span><span style="background-color: white; color: #545454; font-family: Roboto, arial, sans-serif; font-size: x-small;">—</span><span style="font-family: Arial, sans-serif; font-size: 10pt;"> so I do think the Federal Reserve can look at being more transparent about those activities and can do it in a way that does not in any way reduce the effectiveness.</span></blockquote><span style="font-family: Arial, sans-serif; font-size: 10pt;">Trump’s nominee for comptroller of the currency, former OneWest Bank CEO Joseph Otting, also testified. He called for the OCC to do more to enhance access to credit for low-income and minority communities, expressing concern that excessively prescriptive and narrow government rules have artificially limited bank services to these customers, citing small-dollar loans as an example.<br /><br />Both Otting and Quarles expressed concern about rising risks in student loans and the auto loan market, which Otting said “got a little overcooked” before lenders began reining things in. Quarles also said he was worried about the growing complexity of the regulatory system posing risks in itself.</span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-16220258329992336592017-07-14T09:00:00.000-04:002017-07-14T09:00:52.008-04:00Bipartisan Group of Lawmakers Calls for Better Exam Coordination<span style="font-family: inherit;">In a letter to Treasury Secretary Steven Mnuchin, a group of bipartisan lawmakers led by Reps. Scott Tipton (R-Colo.) and Kyrsten Sinema (D-Ariz.) urged Treasury to prioritize policy changes that would increase coordination between regulatory agencies conducting bank examinations to help reduce the compliance burden on financial institutions. <br /><br />“Financial holding companies and their affiliates are annually subject to a number of different examinations, including capital adequacy, liquidity, cybersecurity, vendor management, the Volcker Rule, Bank Secrecy Act/anti-money laundering requirements, and business continuity planning,” the lawmakers wrote. “Institutions subject to multiple exams on the same issue results in a never-ending cycle of examinations, which diverts critical resources and detracts from the real work of the institution to serve its customers, develop innovative ideas and defend against cyberattacks.” <br /><br />In its recent report on financial regulation, Treasury raised similar concerns about the examination process and made recommendations on how it could be better streamlined. The lawmakers said that they intend to evaluate the department’s recommendation for assigning a lead regulator on issues where agencies have conflicting or overlapping jurisdiction, adding that the agencies themselves should also take action to address the issue. They also welcomed Treasury’s recommendation calling for increased coordination, transparency and accountability between the regulatory agencies. </span><br /><span style="font-family: inherit;"><strong><br /></strong></span><span style="font-family: inherit;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-071417-%20HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=9000&elqTrackId=3b72dc212f50427ab18aaab395433382&elq=68b3f02f2db44b0cb7baec72c6cfcccf&elqaid=16586&elqat=1" target="_blank">Read the letter</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-91128458376853916382017-07-14T08:45:00.000-04:002017-07-14T08:45:05.914-04:00Yellen Opens Door to Reforms of Enhanced Leverage Ratio<span style="font-family: inherit; font-size: 10pt;">Testifying before the Senate Banking Committee, Federal Reserve Chairman Janet Yellen acknowledged that aspects of the agency’s enhanced supplementary leverage ratio “may be having unintended adverse consequences” and said the Fed is looking into changes. Specifically, Yellen addressed concerns expressed by senators from both parties that the enhanced SLR is negatively affecting custody banks that serve institutional investors.<br /><br />For example, by including riskless assets such as reserves held at the Fed in its denominator, the enhanced SLR can increase volatility and raise costs that are passed on to customers. In the case of custody banks, Sen. Mike Rounds (R-S.D.) noted, this means that the structure of the enhanced SLR reduces returns for American retirement savers as mutual funds absorb higher costs to banks.<br /><br />“Perhaps it’s too high relative to risk-based capital requirements,” Yellen said of the enhanced SLR. “It is something where a regulation perhaps has had an unintended consequence, and we are looking at that carefully,” she added, although she did not specify a timeframe for a change. Among the possible options she identified were exempting central bank reserves from the denominator and recalibrating the leverage ratio.<br /><br />ABA has long pointed out the downsides of the current enhanced SLR calculation, most recently in its white paper sent to the Treasury Department this spring. “The inclusion of riskless assets (such as cash and bank reserves place with the Federal Reserve) in the denominator of leverage ratios could feed systemic risk,” the association said. “This would be especially likely during times of financial market stress when banks receive significant inflows of deposits.”</span><br /><span style="font-family: inherit;"><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-071417-%20HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=7561&elqTrackId=256578c40f98428e87ce6973d1aba37a&elq=68b3f02f2db44b0cb7baec72c6cfcccf&elqaid=16586&elqat=1">Read the white paper</a></span></strong>. </span></span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-6535711370454387662017-07-03T10:30:00.000-04:002017-07-03T10:30:20.058-04:00This Week: July 3-7<div><b>Wednesday</b></div><ul><li>Comments Due OCC:<b> Submission for OMB Review; Capital Adequacy Standards (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-06-05/pdf/2017-11548.pdf" target="_blank">Read more.</a></li><li>Comments Due OCC: <b>Uniform Interagency Transfer Agent Registration and Deregistration Forms (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-05-04/pdf/2017-08969.pdf" target="_blank">Read more.</a></li><li>Effective Date FHFA: <b>Federal Home Loan Bank Membership for Non-Federally-Insured Credit Unions</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-06-05/pdf/2017-11207.pdf" target="_blank">Read more.</a></li></ul><b>Friday</b><br /><ul><li>Comments Due CFTC: <b>Chief Compliance Officer Duties and Annual Report Requirements for Futures Commission Merchants, Swap Dealers, and Major Swap Participants; Amendments</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-05-08/pdf/2017-09229.pdf" target="_blank">Read more.</a></li></ul><div><ul><li>Effective Date SEC: <b>Request for Comment on Possible Changes to Industry Guide 3 (Statistical Disclosure by Bank Holding Companies); Extension of Comment Period</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-24/pdf/2017-08160.pdf" target="_blank">Read more.</a></li></ul></div>All times in Eastern Standard Time. See future events on the <a href="http://regreformtracker.aba.com/p/dodd-frank-calendar.html" target="_blank">Dodd-Frank Calendar</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com3tag:blogger.com,1999:blog-8681988120361586093.post-48221508375540572502017-06-30T10:45:00.000-04:002017-06-30T10:45:03.123-04:00Fed Calculates Aggregate Liabilities<span style="font-family: "arial" , sans-serif; font-size: 10pt;">The Federal Reserve announced that aggregate financial sector liabilities amounted to approximately $21.01 trillion, meaning that <span style="font-size: 13.3333px;">–</span> under Section 622 of the Dodd-Frank Act, which prohibits the combination of financial companies if the resulting company’s liabilities account for more than 10% of the aggregate consolidated liabilities of all financial firms <span style="font-size: 13.3333px;">–</span> financial companies cannot combine unless their aggregate liabilities amount to less than $2.1 trillion. <br /><br />The limit applies to all insured depository institutions, bank and S&L holding companies, foreign banks and nonbanks subject to FSOC supervision. Liabilities are defined as the difference between risk-weighted assets <span style="font-size: 13.3333px;">–</span> adjusted to reflect exposures deducted from regulatory capital <span style="font-size: 13.3333px;">– </span>and total regulatory capital. </span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-063017-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8817&elqTrackId=1e0cbfe11e364c5aa2be03821168ed2d&elq=f962cdd2263e4ffda2e6d8f5ed47ff26&elqaid=16440&elqat=1" target="_blank">Read more</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-28896291647406504472017-06-29T13:00:00.000-04:002017-06-29T13:00:21.897-04:00Fed Approves U.S. Banks’ Capital Plans<span style="font-family: Arial, sans-serif; font-size: 10pt;">The Federal Reserve approved the capital plans of 34 large banks participating in the Comprehensive Capital Analysis and Review. One bank won a conditional “non-objection” and must submit a new capital plan by the end of the fourth quarter to address certain issues in its capital planning processes. But for the first time, all institutions were found to meet minimum capital requirements even under severely adverse conditions. <br /><br />The Fed’s annual CCAR evaluates the capital planning processes and capital adequacy of the largest banks, including their proposed capital actions such as dividend payments, share buybacks and issuances. The agency can object to a capital plan based on qualitative or quantitative concerns, and it considers factors such as a firm’s projected capital ratios under a hypothetical scenario of severe stress and the strength of the firm’s capital planning processes. <br /><br />The Fed noted that U.S. firms have substantially increased their capital since the first round of stress tests in 2009. The 34 bank holding companies in this year’s test have increased common equity capital by more than $750 billion since the beginning of 2009. </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062917-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8801&elqTrackId=9a8a96e20763497aa5b344634512b89c&elq=ce392e6ed8314bcb813d2d77abddefd2&elqaid=16439&elqat=1" target="_blank">View the CCAR results</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-44980784121850004402017-06-27T10:00:00.000-04:002017-06-27T10:00:14.354-04:00Fed Gov. Powell Highlights Focal Points for Reg Reform<span style="font-family: Arial, sans-serif; font-size: 10pt;">Noting the progress made over the last several years to improve the strength and resiliency of the U.S. financial system, Federal Reserve Governor Jerome Powell pointed to several key areas that the Fed is currently focusing on for regulatory reform. Powell’s comments echoed his previous testimony before the Senate Banking Committee.<br /><br />Specifically, Powell noted that the Fed will look to simplify and recalibrate existing regulations for small and medium-sized banks, including call report and exam cycle requirements and certain capital rules. The agency is also considering changes to resolution plans, including an extension of the cycle from one year to two years; a reassessment of the Volcker rule; changes to increase the transparency of the stress testing process; and recalibrations to the supplementary leverage ratio. <br /><br />“U.S. banks today are as strong as any in the world,” he said. “As we consider the progress that has been achieved in improving the resiliency and resolvability of our banking industry, it is important for us to look for ways to reduce unnecessary burden.” </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062717-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8766&elqTrackId=21c5d5f5ebb6437c98a58718b60e321b&elq=7324e04f6f0c4a1885e3efbbf00cd6a9&elqaid=16437&elqat=1" target="_blank">Read the speech</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-60369067101628469402017-06-26T10:43:00.001-04:002017-06-26T10:43:57.779-04:00Fed Gov. Powell Advocates for Central Counterparty Stress Testing<span style="font-family: Arial, sans-serif; font-size: 10pt;">In a speech at the Federal Reserve Bank of Chicago, Federal Reserve Governor Jerome Powell said that regulators should increase their efforts to monitor for liquidity risk among central counterparties by conducting stress tests on those entities. <br /><br />“Conducting supervisory stress tests on CCPs that take liquidity risks into account would help authorities better assess the resilience of the financial system,” he explained, adding that these efforts are already underway at the CFTC, which last year tested five major CCPs’ ability to withstand credit risk if one or more clearing members were to default. “This was innovative and necessary work. It would be useful to build on it by adding tests that focus on liquidity risks across CCPs and their largest common clearing members,” Powell said. <br /><br />He also noted the interdependent relationship between banks and CCPs, and said that “global authorities… have a responsibility to ensure that bank capital standards and other policies do not unnecessarily discourage central clearing.” To that end, Powell said that the Basel Committee on Banking Supervision is considering changes to the supplementary leverage ratio for global systemically important banks, and that the Federal Reserve is considering additional changes to ease capital requirements for banks.</span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062617-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8736&elqTrackId=883daf8a5d2347cd8671ec65f17ff1af&elq=240c2058e81e4860b6f35d7f59941ad9&elqaid=16399&elqat=1" target="_blank">Read the speech</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-21125403343211043182017-06-23T10:30:00.000-04:002017-06-23T10:30:34.279-04:00Fed: Large Banks Would Remain Well-Capitalized Under Severe Stress<span style="font-family: "arial" , sans-serif; font-size: 10pt;">The largest U.S. banks collectively showed that they can withstand a severe economic downturn and continued to improve their capital positions, according to the results of Dodd-Frank Act-mandated stress tests the Federal Reserve.<br /><br />“This year's results show that, even during a severe recession, our large banks would remain well capitalized,” said Fed Governor Jerome Powell. “This would allow them to lend throughout the economic cycle, and support households and businesses when times are tough.”<br /><br />Aggregate Tier 1 capital ratios at the 34 firms subjected to the Fed’s stress-test program would fall from an actual 12.5% in the fourth quarter of 2016 to a minimum of 9.2% under the test’s most extreme hypothetical scenario </span><span style="font-family: "times new roman"; font-size: 13.3333px;">–</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> which includes, among other things, 10% unemployment, falling treasury rates, a 25% decline in home prices and a 35% drop in commercial real estate prices.</span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><br />“Today’s results reaffirm that U.S. banks are strong and remain well positioned to continue playing their important role in accelerating economic growth,” said ABA President and CEO Rob Nichols. “From this solid foundation, the focus should now turn to what can be done to help U.S. banks promote economic growth even further.”<br /><br />Even with the hypothetical declines, capital levels at the banks would still be much higher than they were following the 2008 financial crisis, when Tier 1 capital ratios for the firms fell to about 5.5% at the end of that year. </span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062317-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8718&elqTrackId=2e9a927b377042ebb6ff14294ff74aa3&elq=808b306d5c5549e4ac35a79549ffc50f&elqaid=16350&elqat=1" target="_blank">Review the methodology and results</a></span></strong>. </span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062317-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8717&elqTrackId=2abca6aa8f5247249b2ea3803244e14f&elq=808b306d5c5549e4ac35a79549ffc50f&elqaid=16350&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Read Nichols' statement</span></strong></a>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com2tag:blogger.com,1999:blog-8681988120361586093.post-55509829035389564022017-06-23T10:00:00.000-04:002017-06-23T10:00:04.714-04:00State Associations Call on Senate to Advance Reg Relief Legislation<span style="font-family: "arial" , sans-serif; font-size: 10pt;">As the debate over financial regulatory reform now shifts to the Senate, 52 state bankers associations called on Senate leadership to support a bipartisan reg relief bill that would help create economic growth and improve the availability of credit to consumers.<br /><br />The associations encouraged lawmakers to support several measures included in ABA’s <a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062317-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=6980&elqTrackId=3892e067a7e14a24ab308a3125d8604a&elq=808b306d5c5549e4ac35a79549ffc50f&elqaid=16350&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Blueprint for Growth</span></strong></a>, including a Qualified Mortgage safe harbor for mortgage loans held in portfolio, more tailored supervision based on an institution’s risk profile and business model, greater flexibility for savings associations, relief from various reporting requirements and repeal of the Volcker Rule. They also called for a review of arbitrary asset thresholds, and for regulators to consider changes to capital and liquidity requirements.<br /><br />With the Treasury Department, regulators and individual lawmakers all expressing support recently for various reg reform initiatives, the associations expressed optimism for a bipartisan bill to move through the Senate. </span><br /><blockquote class="tr_bq"><span style="font-family: "arial" , sans-serif; font-size: 10pt;">It is encouraging to see lawmakers of both parties, the House of Representatives, and the Treasury Department lay the foundation for changes <span style="font-family: "times new roman"; font-size: 13.3333px;">–</span> regulatory calibrations that can kick-start our economy while maintaining a financial system that is safe, sound, and resilient. We urge the Senate not to allow partisanship to stand in the way of promptly passing much-needed reforms, and we stand ready to work with you in support of the financial needs of America’s communities.</span></blockquote><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062317-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8715&elqTrackId=03b77abdcaa643e69c0329ec8fc4ce62&elq=808b306d5c5549e4ac35a79549ffc50f&elqaid=16350&elqat=1" target="_blank">Read the letter</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-32314469816744756302017-06-22T10:30:00.000-04:002017-06-22T10:30:27.448-04:00Regulators to Support Certain Reg Relief Measures in Hearing<span style="font-family: "arial" , sans-serif; font-size: 10pt;">The heads of the regulatory agencies are expected to endorse various proposals for regulatory relief in a hearing in the Senate Banking Committee.<br /><br />In written testimony submitted in advance of the hearing, representatives from the Federal Reserve, FDIC and the OCC expressed support for various actions to simplify the stress testing process, more closely tailor regulation and encourage the formation of new banks. Several measures addressed by the regulators echoed recommendations from the recent Treasury report on regulatory reform that was released earlier this month. <br /><br />Notably, Federal Reserve Governor Jerome Powell expressed his agency’s support for extending the timeline for living will submissions from annually to every two years. FDIC Chairman Martin Gruenberg agreed, calling the change “worthwhile” and adding that “there may be opportunities to greatly reduce the submission requirements for a large number of firms due to their relatively small, simple and domestically-focused banking activities.” Regulators also supported revisiting various asset-size thresholds, including the $10 billion threshold for company-run stress tests and the $50 billion threshold for enhanced prudential standards. <br /><br />As part of efforts to remove outdated, unnecessary or overly burdensome regulation, Acting Comptroller of the Currency Keith Noreika proposed that Treasury conduct a periodic review of all Bank Secrecy Act Regulations, similar the EGRPRA process. This “would give financial institutions an opportunity to express their concerns directly to the agency with the authority issue, repeal and modify BSA rules,” Noreika said in his written statement. <br /><br />In addition, Noreika proposed that Congress streamline the de novo application process by giving new banks the ability to obtain FDIC deposit insurance upon receiving a charter from the OCC. Currently, banks are required to submit an application to both the FDIC and the chartering authority (either the OCC or state regulatory agency, depending on charter type). Noreika recommended that Congress consider designating a time period that the FDIC could object to the granting of deposit insurance following the charter approval by OCC or state regulator. <br /><br />Regulators also said they would be receptive to, among other things, an exemption for small banks from the Volcker Rule, additional enhancements to the capital planning and stress-testing process and additional exam relief, particularly for community banks. </span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062217-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8701&elqTrackId=c9f4fe224bf44e5da5d20dbb17e23187&elq=08142e158df64ef78026d4c34158b582&elqaid=16348&elqat=1" target="_blank">Read the regulators' testimonies</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com4tag:blogger.com,1999:blog-8681988120361586093.post-52260744288106114632017-06-21T10:20:00.000-04:002017-06-21T10:20:55.753-04:00ABA Seeks Pause on Basel Transition Period<span style="font-family: "arial" , sans-serif; font-size: 10pt;">ABA wrote to the heads of the federal regulatory agencies requesting that regulators pause the Basel III transition period until projected amendments to the risk-based capital standards can be promulgated. <br /><br />The agencies earlier this year acknowledged in a joint Economic Growth and Regulatory Paperwork Reduction Act report that many of the Basel rules were “too complex given community banks’ size, risk profile, condition, and complexity,” and announced that they would propose amendments to simplify the regulatory capital treatment for mortgage servicing assets, timing difference deferred tax assets and holdings of regulatory capital instruments issued by financial institutions. These changes were echoed by the Treasury Department in its report on regulatory reform. The association explained its position in the letter:</span><br /><blockquote class="tr_bq"><span style="font-family: "arial" , sans-serif; font-size: 10pt;">[ABA] share[s] the view that regulatory capital standards are more complex than necessary for the intended prudential supervisory value. This is an appropriate time to consider the effectiveness of prudential supervision standards implemented in recent years, with a view toward how they can be improved.</span> </blockquote><strong style="font-family: arial, sans-serif; font-size: 10pt;"><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062117-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8690&elqTrackId=6b1eaf6626744c0181bbc95dbb52fca5&elq=1270950feef14fc7826f2fa66079dca9&elqaid=16347&elqat=1" target="_blank">Read the letter</a></span></strong><span style="font-family: "arial" , sans-serif; font-size: 10pt;">. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-238257154243067582017-06-13T11:50:00.000-04:002017-06-13T11:50:00.793-04:00Treasury Department Issues Sweeping Regulatory Reform RecommendationsThe Treasury Department has issued a 150-page report making dozens of recommendations for how Congress and regulatory agencies can streamline bank regulation in a way that promotes economic growth. The report came in response to President Trump’s executive order outlining core principles of financial regulation and calling for a comprehensive review of the regulatory structure.<br /><br />As ABA has long urged, the report called for significant tailoring of regulatory requirements. “[N]early seven years after [Dodd-Frank], regulation has proven to be insufficiently tailored to depository institutions based on the size and complexity of their business models,” the report said. The report noted that economic growth and loan growth have been historically depressed during the current recovery, which Treasury attributed in part to the volume and structure of current regulations.<br /><br />ABA President and CEO Rob Nichols said:<br /><blockquote>Today’s Treasury report is an important step to refine financial regulations to ensure that they are supporting – not inhibiting – economic expansion. We applaud Secretary Steven Mnuchin for recognizing that we need regulatory reform to boost economic growth, and we expect this report will serve as a catalyst in that effort.</blockquote>ABA was an active participant in the Treasury’s process. It submitted 10 white papers to Treasury offering detailed feedback, and delegations of bankers representing all bank sizes took part in in-person meetings. The recommendations of the report are consistent to a large degree with recommendations made by ABA.<br /><br />The Treasury report included recommendations on capital, liquidity, community banks, mortgage lending and structural regulatory reform. While some of Treasury’s recommendations require congressional action, Mnuchin estimated that “70 to 80%” can be put into motion by regulators immediately through their independent rulemaking authority. The report also highlighted numerous mortgage rules that the CFPB could address on its own.<br /><br />Nichols will discuss the Treasury report, along with legislative efforts on regulatory reform and other topics during a free member webinar Thursday at 2 p.m. EDT. ABA staff will continue to review the report and issue additional analysis for members in the days to come.<br /><br /><a href="https://www.treasury.gov/press-center/press-releases/Documents/A%20Financial%20System.pdf" target="_blank">Read the Treasury report</a>.<br /><a href="http://www.aba.com/Advocacy/Documents/sa-treasury-executive-orders-june-2017.pdf" target="_blank">View Treasury's summary of its recommendations highlighted to note ABA-supported ideas</a>.<br /><a href="http://www.aba.com/advocacy/pages/washington-update-webinar.aspx" target="_blank">Register for the webinar</a>. <img src="http://www.aba.com/aba/documents/newsbytesimages/membersonly.gif"><br />ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-16508310285998639192017-06-09T10:38:00.002-04:002017-06-09T10:38:45.176-04:00Basel Committee Issues FAQs on Liquidity Coverage Ratio <!--END of Individual Newsbyte--><!--BEGIN Individual Newsbyte below--><!--Paste NewsBytes Department Head below--><br /><span style="color: black; font-family: "Arial",sans-serif; font-size: 10.0pt;">The Basel Committee released a second set of FAQs on Basel III’s Liquidity Coverage Ratio, which requires banks to hold highly liquid assets relative to cash outflows over a 30-day period during a stressed scenario. The LCR generally applies to banking organizations with more than $50 billion in assets. The FAQs are intended to provide clarification on the rule’s interpretation.</span><br /><span style="color: black; font-family: "Arial",sans-serif; font-size: 10.0pt;"><strong><br /></strong></span><span style="color: black; font-family: "Arial",sans-serif; font-size: 10.0pt;"><strong><span style="color: #005a8c; font-family: "Arial",sans-serif;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-060917-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8497&elqTrackId=a40ca14ccfa14e09ae1b025af41c9107&elq=87c0ff6a399c48c3bd755044925c0348&elqaid=16201&elqat=1" target="_blank">View the FAQs</a></span></strong>. </span><o:p></o:p>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-13073543799684329872017-06-08T11:50:00.000-04:002017-06-08T11:50:06.346-04:00ABA Commends House Reg Reform Effort Ahead of Choice Act Vote<span style="font-family: "arial" , sans-serif; font-size: 10pt;">As Congress prepares to vote on the Financial Choice Act, ABA wrote to House leadership commending the House Financial Services Committee Chairman Jeb Hensarling (R-Texas) for his efforts to bring regulatory relief to the nation’s banks. The full House is expected to vote on the bill on June 8, 2017. The ABA said:</span><br /><blockquote class="tr_bq"><span style="font-family: "arial" , sans-serif; font-size: 10pt;">We agree with members of Congress on the need for strong regulation of our financial system. However, within the 25,000 pages of new and proposed rules since Dodd-Frank became law are requirements that are harming our ability to serve creditworthy customers and our communities… The Financial Choice Act will help address many of these concerns and allow banks to get back to serving their customers.</span></blockquote><span style="font-family: "arial" , sans-serif; font-size: 10pt;">The bill includes several ABA-supported provisions that would provide regulatory relief for banks, including a Qualified Mortgage safe harbor for mortgage loans held in portfolio, more tailored supervision based on an institution’s risk profile and business model, greater flexibility for savings associations, relief from various reporting requirements and repeal of the Volcker Rule. </span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><br /></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;">ABA also applauded an amendment by Rep. John Faso (R-N.Y.) that would help level the playing field for mutual holding companies and allow them to raise additional capital without placing their mutual structure at risk.</span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-060817-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8483&elqTrackId=7b0a9c119a97449daebd706915cc05c1&elq=573fa6d3b1ce4e31848faa6bbe7e7f25&elqaid=16200&elqat=1" target="_blank">Read the letter</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-4080959037160766822017-06-02T11:15:00.000-04:002017-06-02T11:15:06.322-04:00Fed’s Powell Signals More ‘Transparency’ in Stress TestsThe Fed will work in the coming months to provide greater transparency into the stress testing process, Governor Jerome Powell said in an interview on CNBC.<br /><blockquote class="tr_bq">We’re working on something…in the coming months which will provide much more granular information about our expectations for loss rates on particular portfolios, of corporate loans and other kinds of loans. We’ll also provide more guidance, when we announce the results on June 22…on how we think about the qualitative requirement. And we’re going to seek comment from the public on how we go about providing more transparency.</blockquote>ABA EVP Wayne Abernathy welcomed Powell’s remarks.<br /><blockquote class="tr_bq">The idea of providing greater transparency on how the tests treat certain kinds of loans is consistent with recommendations ABA made in our recent white paper to Treasury as well as in our conversations with the Fed over the years. There is a growing consensus, among regulators and the regulated, about the value of stress testing, so efforts to refine the tests to make them even more valuable for supervision and management is a welcome step.</blockquote>The Fed announced its schedule for stress test results. The Fed will release results of the Dodd-Frank Act-mandated stress tests on June 22, 2017 and will release the results of the Comprehensive Capital Analysis and Review process for larger and internationally active bank holding companies on June 28. Company-run stress tests results will be available on or before July 7.<br /><br />Powell also said that with the bulk of post-crisis rulemaking completed, it is time to revisit how new regulations are working.<br /><blockquote class="tr_bq">I think it’s our obligation now…to ask what aspects of it may be redundant or inefficient, or utterly essential and should be protected down to every letter. But there are going to be some adjustments and I think that’s only appropriate. Much of this new stuff was novel and it would be very surprising if we got it all exactly right the first time.</blockquote>He added that the Fed is rethinking the way its supervision affects bank directors.<br /><blockquote class="tr_bq">We’re going to move to a more principles-based approach and we’re going to eliminate many of the really specific directives that we give to boards of directors. We want directors to focus on their main job of overseeing and holding accountable the management, not running the company and not getting tied up in a lot of checklists.</blockquote><a href="http://www.cnbc.com/2017/06/01/changes-coming-to-bank-stress-tests-feds-powell-says.html?utm_campaign=ABA-Newsbytes-060217-HTML&utm_medium=email&utm_source=Eloqua" target="_blank">Watch the interview</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-39112612558654612462017-05-26T11:55:00.000-04:002017-05-26T11:55:11.864-04:00The Week Ahead: May 29 - June 2<div><b>Tuesday</b></div><ul><li>Comments Due CFTC: <b>Agency Information Collection Activities: Notice of Intent To Extend Collection 3038-0049: Procedural Requirements for Requests for Interpretative, No-Action, and Exemptive Letters (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-29/pdf/2017-06182.pdf" target="_blank">Read more.</a></li><li>Comments Due FDIC: <b>Agency Information Collection Activities: Proposed Collection Renewals; Comment Request (3064-0099; -0118; -0148 and -0153) (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-28/pdf/2017-08667.pdf" target="_blank">Read more.</a></li><li>Comments Due FDIC: <b>Agency Information Collection Activities: Submission for OMB Review; Comment Request (3064-0006 & -0184) (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-28/pdf/2017-08604.pdf" target="_blank">Read more.</a></li><li>Comments Due FDIC: <b>Application for Waiver of Prohibition on Acceptance of Brokered Deposits</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-28/pdf/2017-08667.pdf" target="_blank">Read more.</a></li><li>Comments Due FDIC: <b>Interagency Biographical and Financial Report</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-28/pdf/2017-08604.pdf" target="_blank">Read more.</a></li><li>Comments Due FDIC: <b>Interagency Statement on Sound Practices Concerning Complex Structured Finance Transactions</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-28/pdf/2017-08667.pdf" target="_blank">Read more.</a></li><li>Comments Due FDIC: <b>Management Official Interlocks</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-28/pdf/2017-08667.pdf" target="_blank">Read more.</a></li><li>Comments Due FDIC: <b>Prohibitions and Restrictions on Proprietary Trading and Certain Interests In and Relationships With, Hedge Funds and Private Equity Funds</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-28/pdf/2017-08604.pdf" target="_blank">Read more.</a></li><li>Comments Due FDIC: <b>Regulatory Capital Rules</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-28/pdf/2017-08667.pdf" target="_blank">Read more.</a></li><li>Comments Due FINCEN: <b>Due Diligence Programs for Correspondent Accounts for Foreign Financial Institutions (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-30/pdf/2017-06300.pdf" target="_blank">Read more.</a></li><li>Comments Due FINCEN: <b>Generic Clearance for the Collection of Qualitative Feedback on Agency Service Delivery (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-30/pdf/2017-06301.pdf" target="_blank">Read more.</a></li><li>Comments Due FSA: <b>Disaster Assistance Program (General) (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-29/pdf/2017-06143.pdf" target="_blank">Read more.</a></li><li>Comments Due FSA: <b>Information Collection Request; Customer Data Worksheet Request for Business Partner Record Change (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-29/pdf/2017-06144.pdf" target="_blank">Read more.</a></li><li>Effective Date SEC: <b>Securities Transaction Settlement Cycle; Final Rule</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-29/pdf/2017-06037.pdf" target="_blank">Read more.</a></li></ul><div><b>Wednesday</b></div><ul><li>Comments Due SBA: <b>Borrower Information Form, Lenders Application for Guaranty, and 7(a) Loan (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-05-01/pdf/2017-08771.pdf" target="_blank">Read more.</a></li><li>Comments Due SBA: <b>Certified Development Company (CDC) Annual Report Guide (PRA)</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-05-01/pdf/2017-08757.pdf" target="_blank">Read more.</a></li></ul><div><b>Thursday</b></div><ul><li>Comments Due SBA: <b>Small Business Investment Companies: Passive Business Expansion and Technical Clarifications</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-05-02/pdf/2017-08810.pdf" target="_blank">Read more.</a></li></ul><div><b>Friday</b></div><ul><li>Comments Due FRB: <b>Proposed Agency Information Collection Activities; Comment Request</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-03/pdf/2017-06401.pdf" target="_blank">Read more.</a></li><li>Comments Due SBA: <b>Entrepreneurial Development Customer Intake Form & Training Report Form</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-03/pdf/2017-06456.pdf" target="_blank">Read more.</a></li> </ul><br />All times in Eastern Standard Time. See future events on the <a href="http://regreformtracker.aba.com/p/dodd-frank-calendar.html" target="_blank">Dodd-Frank Calendar</a>.<br />ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-1364492169322963382017-05-12T11:30:00.000-04:002017-05-12T11:30:15.466-04:00The Week Ahead: May 14 - 20<div><b>Monday</b></div><ul><li>Comments Due CFTC: <b>Capital Requirements of Swap Dealers and Major Swap Participants</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-16/pdf/2017-05277.pdf" target="_blank">Read more.</a></li><li>Comments Due FHFA: <b>Freedom of Information Act Implementation</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-15/pdf/2017-04910.pdf" target="_blank">Read more.</a></li><li>Comments Due SEC: <b>Proposed Amendments to Municipal Securities Disclosure; Proposed Rule</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-15/pdf/2017-04323.pdf" target="_blank">Read more.</a></li></ul><div><b>Tuesday</b></div><ul><li>Comments Due SEC: <b>Inline XBRL Filing of Tagged Data; Proposed Rule</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-17/pdf/2017-04366.pdf" target="_blank">Read more.</a></li></ul><div><b>Wednesday</b></div><ul><li>9AM Meeting CFPB: <b>Academic Research Council Meeting</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-28/pdf/2017-08611.pdf" target="_blank">Read more.</a></li></ul><div><b> Friday </b></div><ul><li>Comments Due CFPB: <b>Request for Information Regarding Use of Alternative Data and Modeling Techniques in the Credit Process</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-02-21/pdf/2017-03361.pdf" target="_blank">Read more.</a></li></ul><div><b>Saturday</b></div><ul><li>Revised Effective Date SBA: <b>Small Business Investment Companies: Passive Business Expansion and Technical Clarifications</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-21/pdf/2017-05533.pdf" target="_blank">Read more.</a></li></ul><br /><br />All times in Eastern Standard Time. See future events on the <a href="http://regreformtracker.aba.com/p/dodd-frank-calendar.html" target="_blank">Dodd-Frank Calendar</a>.<br />ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-4679544210505863442017-05-10T10:00:00.000-04:002017-05-10T10:00:38.251-04:00Nichols: Reg Relief is About Helping Customers, CommunitiesAs the banking industry continues to work toward the goal of regulatory relief, ABA President and CEO Rob Nichols said that such changes stand to benefit consumers most. <br /><br />Nichols said in an interview on CNBC’s “Squawk on the Street:<br /><blockquote>Ultimately, this is not about the banks. This is about economic growth for bank customers, clients and communities. That’s really the folks that will benefit from rule recalibration that is sensible. Our interest is in helping the economy grow. </blockquote><br />Nichols noted that ABA is seeking commonsense changes to Dodd-Frank Act rules and other regulations that impede banks’ ability to provide their customers with the financial products and services they need. He added that any changes should not affect the safety and soundness of the financial system. <br /><br />The association is pursuing regulatory reform both through Congress and the Trump administration. In response to President Trump’s executive order calling for a review of the current regulatory framework, ABA has submitted white papers to the Treasury Department on a range of issues including capital, liquidity, stress testing, fair lending, HMDA, small-dollar lending and international standard setting. <br /><br /><a href="http://video.cnbc.com/gallery/?video=3000617020&play=1" target="_blank">Watch an excerpt from the interview</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-12893263374039560852017-05-09T10:30:00.000-04:002017-05-09T10:30:13.558-04:00ABA Seeks Greater Transparency on International Standard Setting ProcessIn an eighth white paper to the Treasury Department, ABA called for a re-evaluation of the current global regulatory regime and for improvements that would make international standards more workable and supportive of economic growth, both domestically and abroad. <br /><br />ABA noted that the current process for global standard setting lacks transparency and accountability, pointing as an example to the Basel rules that were developed with little public input. As a result, the implementing regulations in many cases “are inconsistent with U.S. economic and financial interests,” such as Basel’s Liquidity Coverage ratio, which is based on assumptions that have not historically held true for the U.S. market, and the Basel capital rules on mortgage servicing assets, which impose broad constraints on MSAs and have caused many banks to scale back their mortgage servicing operations, ABA said. <br /><br />To promote greater transparency, ABA recommended that regulators publish advanced notices of proposed rulemaking before undertaking any international standard-setting project. The ANPRs should provide detail on specific issues or problems to be addressed by the international standards, the nature of the standards being considered for application in the U.S. or affecting U.S. citizens or businesses, the various options likely to be considered and the anticipated general impact of those options on U.S. citizens, businesses and the economy. Implementing regulations should be tailored to accommodate the diverse business models in the U.S. banking industry, ABA added. <br /><br />In addition, ABA urged regulators to pause and conduct a careful review of all implementing regulations that resulted from global standard setting since the financial crisis to ensure that the rules are not standing in the way of economic growth. The association also called for a redesign of the international peer review program so that it focuses on the objectives of international standards, rather than compliance minutiae.<br /><br /><a href="http://www.aba.com/Advocacy/Documents/InternationalStandardSetting.ABA.May17%20%28002%29.pdf" target="_blank">Read the white paper</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0