Regulatory Developments
The Federal Reserve continues to support the flow of credit to help underpin economic recovery. The Supervision and Regulation Report, May 2020 summarized the numerous regulations and policy statements that were issued at the beginning of the COVID event. Since that time, the Federal Reserve has undertaken further COVID-related actions to support the flow of credit and liquidity and to ease operational burden for banking organizations. Some of these actions extended or expanded prior measures, including temporarily adjusting the supplementary leverage ratio requirements for depository institutions and continuing to support Federal Reserve credit facilities created during the COVID event. The Federal Reserve also completed regulatory and policy actions not related to the COVID event, detailed below (table 1).
While this report is focused on safety and soundness initiatives, it is also important to note that on September 21, 2020, the Board issued an Advance Notice of Proposed Rulemaking to modernize the regulations to implement the Community Reinvestment Act with a 120-day comment period.6
Table 1. Federal Reserve or interagency rulemakings/statements (proposed and final)
From 10/1/2019 to 10/30/2020
Entries in bold and italic indicate regulation or guidance related to the COVID event.
| Date issued | Rule/guidance |
|---|---|
| 10/2/2019 | Agencies issue final rule to update management interlock rules. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191002a.htm |
| 10/8/2019 | Agencies finalize changes to simplify Volcker rule proprietary trading regulations. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191008a.htm |
| 10/10/2019 | Federal Reserve Board finalizes rules that tailor its regulations for domestic and foreign banks to more closely match their risk profiles. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191010a.htm |
| 10/17/2019 | Federal Reserve Board releases results of survey of senior financial officers at banks about their strategies and practices for managing reserve balances. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/other20191017a.htm |
| 10/18/2019 | FDIC and Federal Reserve request information on use and impact of CAMELS ratings. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191018a.htm |
| 10/28/2019 | Agencies propose rule to amend swap margin rules. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191028a.htm |
| 10/28/2019 | Agencies finalize changes to resolution plan requirements; revises requirements consistent with the tailoring rule—keeping the most stringent requirements for largest firms and reducing requirements for smaller firms. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191028b.htm |
| 10/29/2019 | Federal bank regulatory agencies issue final rule to simplify capital calculation for community banks by adopting a community bank leverage ratio option. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191029a.htm |
| 11/8/2019 | Federal Reserve 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. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191108a.htm |
| 11/19/2019 | Agencies finalize changes to supplementary leverage ratio as required by Economic Growth, Regulatory Relief, and Consumer Protection Act. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191119a.htm |
| 11/19/2019 | Federal bank regulatory 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 | Federal bank regulatory agencies finalize rule to update calculation of counterparty credit risk for derivatives contracts. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191119c.htm |
| 12/3/2019 | Agencies clarify requirements for providing financial services to hemp-related businesses. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191203a.htm |
| 12/12/2019 | Federal Reserve Board announces annual adjustment to the asset-size threshold in Regulation I regarding dividend rate paid to member banks. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191212a.htm |
| 12/13/2019 | Federal Reserve Board announces it will extend until January 22, 2020, comment period for its proposal to establish risk-based capital requirements for certain insurance companies supervised by the Board. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191213a.htm |
| 12/17/2019 | Agencies find no deficiencies in resolution plans from the largest banks; find shortcomings for several firms. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191217a.htm |
| 1/30/2020 | Federal Reserve Board finalizes rule to simplify and increase the transparency of the Board's rules for determining control of a banking organization. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200130a.htm |
| 1/30/2020 | Agencies propose changes to modify Volcker rule "covered funds" restrictions. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200130b.htm |
| 3/4/2020 | Federal Reserve Board approves rule to simplify its capital rules for large banks, preserving the strong capital requirements already in place. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200304a.htm |
| 3/6/2020 | Agencies invite comment on updates to resolution plan guidance for large foreign banks. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200306b.htm |
| 3/9/2020 | Agencies encourage financial institutions to meet financial needs of customers and members affected by coronavirus. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200309a.htm |
| 3/10/2020 | SR 20-3 / CA 20-2 Interagency Statement on Pandemic Planning: https://www.federalreserve.gov/supervisionreg/srletters/SR2003.htm |
| 3/13/2020 | SR 20-4 / CA 20-3 Supervisory Practices Regarding Financial Institutions Affected by Coronavirus: https://www.federalreserve.gov/supervisionreg/srletters/SR2004.htm |
| 3/22/2020 | Agencies provide additional information to encourage financial institutions to work with borrowers affected by COVID-19. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200322a.htm |
| 3/24/2020 | Federal Reserve provides additional information to financial institutions on how its supervisory approach is adjusting in light of the coronavirus. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200324a.htm |
| 3/25/2020 | The Federal Financial Institutions Examination Council (FFIEC) on behalf of its members issued a statement highlighting coordination and collaboration of efforts to address COVID-19. FFIEC press release: https://www.ffiec.gov/press/pr032520.htm |
| 3/26/2020 | Federal agencies encourage banks, savings associations and credit unions to offer responsible small-dollar loans to consumers and small businesses affected by COVID-19 Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200326a.htm |
| 3/30/2020&4/2/2020 | SR 20-8 Joint Statement on Adjustment to the Calculation for Credit Concentration Ratios Used in the Supervisory Approach: https://www.federalreserve.gov/supervisionreg/srletters/SR2008.htm |
| 4/6/2020 | Agencies announce changes to the community bank leverage ratio. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200406a.htm |
| 4/6/2020 | SR 20-10 Small Business Administration (SBA) and Treasury Small Business Loan Programs: https://www.federalreserve.gov/supervisionreg/srletters/SR2010.htm |
| 4/7/2020 | Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised). Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200407a.htm |
| 4/15/2020 | SR 20-11 Release of Updated Sections of the Federal Financial Institutions Examination Council's Bank Secrecy Act/Anti-Money Laundering Examination Manual: https://www.federalreserve.gov/supervisionreg/srletters/SR2011.htm |
| 4/17/2020 | Federal Reserve adopts a change in Regulation O to temporarily modify the Board's rules so that certain bank directors and shareholders can apply to their banks for a Small Business Administration's Paycheck Protection Program loan. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200417a.htm |
| 4/27/2020 | Agencies extend comment period on updates to resolution plan guidance for large foreign banks. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200427a.htm |
| 4/30/2020 | The FFIEC on behalf of its members issued a statement to address the use of cloud computing services and security risk management principles in the financial services sector. FFIEC press release: https://www.ffiec.gov/press/pr043020.htm |
| 5/1/2020 | Federal Reserve Board finalizes rule to extend by 18 months the initial compliance dates for certain parts of its single-counterparty credit limit rule. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200501a.htm |
| 5/5/2020 | Federal bank regulatory agencies modified the liquidity coverage ratio for banks participating in Money Market Mutual Fund Liquidity Facility and Paycheck Protection Program Liquidity Facility. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200505a.htm |
| 5/8/2020 | Federal financial regulatory agencies issue interagency policy statement on allowances for credit losses and interagency guidance on credit risk review systems. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200508a.htm |
| 5/8/2020 | SR 20-12 Interagency Policy Statement on Allowances for Credit Losses: https://www.federalreserve.gov/supervisionreg/srletters/SR2012.htm |
| 5/8/2020 | SR 20-13 Interagency Guidance on Credit Risk Review Systems: https://www.federalreserve.gov/supervisionreg/srletters/SR2013.htm |
| 5/15/2020 | Regulators temporarily change the supplementary leverage ratio to increase banking organizations' ability to support credit to households and businesses in light of the coronavirus response. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200515a.htm |
| 5/20/2020 | Federal agencies share principles for offering responsible small-dollar loans, including during periods of economic stress, natural disasters, or other extraordinary circumstances such as the public health emergency created by COVID-19. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200520a.htm |
| 6/15/2020 | Federal Reserve Board resumes examination activities for all banks, after previously announcing a reduced focus on exam activity in light of the coronavirus response. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200615a.htm |
| 6/23/2020 | Federal and state regulatory agencies issue examiner guidance for assessing safety and soundness considering the effect of the COVID-19 pandemic on financial institutions. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200623a.htm |
| 6/23/2020 | SR 20-15 Interagency Examiner Guidance for Assessing Safety and Soundness Considering the Effect of the COVID-19 Pandemic on Institutions: https://www.federalreserve.gov/supervisionreg/srletters/sr2015.htm |
| 6/24/2020 | SR 20-16 Supervision of De Novo State Member Banks: https://www.federalreserve.gov/supervisionreg/srletters/SR2016.htm |
| 6/25/2020 | Financial regulators modify provisions of Volcker rule related to "covered funds." Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200625a.htm |
| 6/25/2020 | Agencies finalize amendments to swap margin rule. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200625b.htm |
| 7/1/2020 | Agencies provide largest firms with information for next resolution plans. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200701a.htm |
| 7/1/2020 | Financial regulators issue statement on managing the LIBOR transition. FFIEC press release: https://www.ffiec.gov/press/pr070120.htm |
| 7/15/2020 | Federal Reserve extends a change in Regulation O to temporarily modify the Board's rules so that certain bank directors and shareholders can apply to their banks for a Small Business Administration's Paycheck Protection Program loan. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200715a.htm |
| 8/3/2020 | SR 20-18 / CA 20-13 Joint Statement on Additional Loan Accommodations Related to COVID-19: https://www.federalreserve.gov/supervisionreg/srletters/SR2018.htm |
| 8/21/2020 | SR 20-21 Joint Statement on Bank Secrecy Act Due Diligence Requirements for Customers Who May Be Considered Politically Exposed Persons: https://www.federalreserve.gov/supervisionreg/srletters/SR2021.htm |
| 8/26/2020 | Agencies issue three final rules: • a final rule that temporarily modifies the community bank leverage ratio, as required by the CARES Act; • a final rule that makes more gradual, as intended, the automatic restrictions on distributions if a banking organization's capital levels decline below certain levels; and • a final rule that allows institutions that adopt the current expected credit losses, or "CECL," accounting standard in 2020 to mitigate the estimated effects of CECL on regulatory capital for two years. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200826a.htm |
| 9/1/2020 | Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by Hurricane Laura and California wildfires. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200901b.htm |
| 9/21/2020 | The Federal Reserve Board issued an Advance Notice of Proposed Rulemaking to modernize the regulations to implement the Community Reinvestment Act. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200921a.htm |
| 9/29/2020 | Agencies issue two final rules: • a final rule that temporarily defers appraisal and evaluation requirements for up to 120 days after the closing of certain residential and commercial real estate transactions; • a final rule that neutralizes—because of the lack of credit and market risk—the regulatory capital and liquidity effects for banks that participate in certain Federal Reserve liquidity facilities. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200929a.htm |
| 9/30/2020 | Federal Reserve Board invites public comment on proposal to update the Board's capital planning requirements to be consistent with other Board rules that were recently modified. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200930a.htm |
| 10/9/2020 | SR 20-22 ISDA IBOR Fallback Protocol and IBOR Fallback Supplement: https://www.federalreserve.gov/supervisionreg/srletters/SR2022.htm |
| 10/9/2020 | SR 20-23 Interagency Order Granting an Exemption from Customer Identification Program Requirements for Loans Extended by Banks and Their Subsidiaries to All Customers to Facilitate Purchases of Property and Casualty Insurance Policies: https://www.federalreserve.gov/supervisionreg/srletters/SR2023.htm |
| 10/20/2020 | The federal banking agencies issued a final rule to strengthen resilience of large banks by requiring them to maintain a minimum level of stable funding over a one-year period. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201020b.htm |
| 10/20/2020 | The federal banking agencies finalized a rule to limit the interconnectedness and reduce the impact from failure of the largest banking organizations. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201020a.htm |
| 10/23/2020 | The Federal Reserve Board and the Financial Crimes Enforcement Network (FinCEN) issued for public comment a proposed rule that would amend the recordkeeping and travel rule regulations under the Bank Secrecy Act. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201023a.htm |
| 10/29/2020 | Agencies propose regulation on the role of supervisory guidance. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201029a.htm |
| 10/30/2020 | Agencies release paper on operational resilience. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201030a.htm |
Footnotes
6. See Board of Governors of the Federal Reserve System, "Federal Reserve Board Issues Advance Notice of Proposed Rulemaking on an Approach to Modernize Regulations That Implement the Community Reinvestment Act," news release, September 21, 2020, https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200921a.htm. Return to text