Regulatory Developments
The Federal Reserve is focused on maintaining a safe, sound, and efficient financial system while simplifying the regulatory framework and minimizing compliance burden.
In particular, the Board continues to tailor regulations, as appropriate, and implement provisions of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). As summarized in table 2, over the past 12 months, the Board proposed 14 rules and guidance, finalized 16 rules and guidance, issued 1 request for information, and issued 6 Federal Reserve and interagency supervisory statements.
Table 2. Federal Reserve or interagency rulemakings/statements (proposed and final)
| Date issued | Rule/guidance |
|---|---|
| 12/4/2018 | Agencies invite public comment on proposal to raise appraisal exemption threshold for residential real estate transactions, as part of EGRRCPA. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20181204a.htm |
| 12/21/2018 | Agencies issue final rules expanding examination cycles for qualifying small banks and U.S. branches and agencies of foreign banks, as part of EGRRCPA. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20181221c.htm |
| 12/21/2018 | Agencies invite public comment on a proposal to exclude community banks from the Volcker rule, as part of EGRRCPA. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20181221d.htm |
| 1/8/2019 | Board invites public comment on proposal that would modify company-run stress testing requirements to conform with EGRRCPA. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190108a.htm |
| 2/5/2019 | Board finalizes set of changes that will increase the transparency of its stress testing program for nation's largest and most complex banks. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190205a.htm |
| 3/6/2019 | Board announces it will limit the use of the "qualitative objection" in its Comprehensive Capital Analysis and Review (CCAR) exercise, effective for the 2019 cycle. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190306b.htm |
| 3/15/2019 | Agencies adopt interim final rule to facilitate transfers of legacy swaps. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190315a.htm |
| 4/2/2019 | Agencies invite public comment on a proposed rule to limit the interconnectedness of large banks and reduce the impact from failure of the largest banks. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190402a.htm |
| 4/8/2019 | Board invites public comment on changes to the regulatory framework that would more closely match rules for foreign banks with the risks they pose to U.S. financial system. Board press release and visuals: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190408a.htm |
| 4/16/2019 | Agencies invite comment on modifications to resolution plan requirements as part of EGRRCPA. The proposal keeps existing requirements for largest firms and reduces requirements for firms with less risk. Interagency press release and visuals: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190416a.htm |
| 4/18/2019 | Agencies invite public comment on revisions to the supplementary leverage ratio as required by EGRRCPA. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190418a.htm |
| 4/23/2019 | Board invites public comment on proposal to simplify and increase the transparency of rules for determining control of a banking organization. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190423a.htm |
| 5/3/2019 | Board invites public comment on a proposal to apply netting protections to a broader range of financial institutions. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190503a.htm |
| 5/9/2019 | Board approves final rule to repeal regulations that incorporated the Secure and Fair Enforcement for Mortgage Licensing Act. Banking institutions that were subject to the Board's rules are now subject to rules from the Consumer Financial Protection Bureau. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190509a.htm |
| 5/30/2019 | Agencies issue final rule regarding the treatment of certain municipal obligations as high-quality liquid assets as part of EGRRCPA. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190530a.htm |
| 6/17/2019 | Agencies issue final rule to streamline regulatory reporting requirements and commit to further review of reporting burdens for small institutions as part of EGRRCPA. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190617a.htm |
| 6/21/2019 | Board releases results of 2019 Dodd-Frank Act stress tests. The banks tested had strong capital levels that would allow them to stay well above their minimum requirements after being tested against a severe hypothetical recession. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190621a.htm |
| 6/27/2019 | Board releases results of its 2019 Comprehensive Capital Analysis and Review stress test. The banks tested had strong capital levels and virtually all are now meeting the Board's supervisory expectations. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190627a.htm |
| 7/9/2019 | Agencies issue final rule to simplify regulatory capital rules. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190709a.htm |
| 7/12/2019 | Agencies invite public comment on a proposed rule on the capital treatment of land development loans as part of EGRRCPA. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190712a.htm |
| 7/17/2019 | Agencies announce coordination of reviews for certain foreign funds under the Volcker rule. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190717a.htm |
| 7/22/2019 | Agencies and FinCEN improve transparency of risk-focused BSA/AML supervision. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190722a.htm |
| 7/26/2019 | Agencies release public sections of resolution plans for eight large banks. Agencies complete resolution plan evaluations and extend deadline for certain firms. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190726a.htm |
| 9/6/2019 | Board invites public comment on proposal to establish capital requirements for certain insurance companies supervised by the Board. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190906a.htm |
| 9/27/2019 | Agencies issue final rule to exempt residential real estate transactions of $400,000 or less from appraisal requirements as part of EGRRCPA. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20190927a.htm |
| 10/2/2019 | Agencies issue final rule to update rules restricting the ability of a director or other management official to serve at more than one depository institution, known as management interlock rules. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191002a.htm |
| 10/8/2019 | Agencies finalize changes to simplify the Volcker rule. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191008a.htm |
| 10/10/2019 | Board finalizes rules that tailor its regulations for domestic and foreign banks to more closely match their risk profiles as part of EGRRCPA. The rules reduce compliance requirements for firms with less risk while maintaining the most stringent requirements for the largest and most complex banks. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191010a.htm |
| 10/17/2019 | Agencies seek comment on proposed interagency policy statement on allowances for credit losses and proposed interagency guidance on credit risk review systems. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191017a.htm |
| 10/18/2019 | Agencies request information on use and impact of CAMELS ratings. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191018a.htm |
| 10/28/2019 | Agencies finalize changes to resolution plan requirements as part of EGRRCPA. The rules maintain requirements for the largest firms and reduce requirements for smaller firms. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191028b.htm |
| 10/28/2019 | Agencies invite comment on proposal to amend swap margin rules. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191028a.htm |
| 10/29/2019 | Agencies issue final rule to simplify capital calculation for community banks (community bank leverage ratio). Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191029a.htm |
| 11/08/2019 | Board invites public comment on proposal to extend by 18 months initial compliance dates for foreign banks subject to its single-counterparty credit limit rule. Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191108a.htm |
| 11/19/2019 | Agencies finalize changes to supplementary leverage ratio as required by EGRRCPA. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191119a.htm |
| 11/19/2019 | Agencies issue final rule on treatment of high-volatility commercial real estate. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191119b.htm |
| 11/19/2019 | Agencies finalize rule to update calculation of counterparty credit risk for derivative contracts. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191119c.htm |
Box 2. Final Rules to Tailor Prudential Standards for Large Domestic and Foreign Banking Organizations
The Federal Reserve Board on October 10, 2019, finalized rules that tailor its regulations for domestic and foreign banks to more closely match their risk profiles. The rules reduce compliance requirements for firms with less risk while maintaining the most stringent requirements for the largest and most complex banks.
The rules establish a framework that sorts banks with $100 billion or more in total assets into four different categories based on several factors, including asset size, cross-jurisdictional activity, reliance on short-term wholesale funding, nonbank assets, and off-balance-sheet exposure. Significant levels of these factors result in risk and complexity to a bank and can, in turn, bring risk to the financial system and broader economy.
The rules build on the Board's existing practice of tailoring its requirements and are consistent with changes made by EGRRCPA.
Separately, the Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) on October 28, 2019, announced that they had finalized a rule that modifies their resolution plan requirements for large firms. The rule retains resolution plan elements in place for the largest firms, while reducing requirements for smaller firms that pose less risk to the financial system.