May 2018Transmittal 447
Effective: 5/1/2018
Monetary Policy and Reserve Requirements Regulation A
The Board has adopted final amendments to its Regulation A to reflect
the Board’s approval of an increase in the rate for primary credit
at each Federal Reserve Bank. The secondary credit rate at each Reserve
Bank automatically increased by formula as a result of the Board’s
primary credit rate action.
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The final rule is effective
March 27, 2018 (Regulation A, Docket R-1601), the same day it was published in the Federal
Register. The rate changes for primary and secondary credit were
applicable on March 22, 2018.Regulation
D
The Board is amending Regulation D (Reserve
Requirements of Depository Institutions) to revise the rate of interest
paid on balances maintained to satisfy reserve balance requirements
(IORR) and the rate of interest paid on excess balances (IOER) maintained
at Federal Reserve Banks by or on behalf of eligible institutions.
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The final amendments
specify that IORR is 1.75 percent and IOER is 1.75 percent, a 0.25
percentage point increase from their prior levels. The amendments
are intended to enhance the role of such rates of interest in moving
the federal funds rate into the target range established by the Federal
Open Market Committee. The final rule is effective March 27, 2018
(Regulation D, Docket R-1602), the same day it was published in the Federal
Register. The IORR and IOER rate changes were applicable on March
22, 2018.Bank Secrecy Act Regulations
The Financial Crimes
Enforcement Network (FinCEN), a bureau of the Department of the Treasury,
issued this final rule to adjust its civil monetary penalties (CMPs)
for inflation as mandated by the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (collectively referred
to herein as “the act”).
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This rule adjusts CMPs within the jurisdiction of certain
components of the department to the maximum amount required by the
act. The final rule is effective March 19, 2018 (Department of the
Treasury, Financial Crimes Enforcement Network, Bank Secrecy Act Regulations), the same day it was published
in the Federal Register.CFPB’s Regulation X and CFPB’s Regulation Z
The Consumer Financial Protection Bureau (CFPB)
is amending certain mortgage servicing rules issued by the CFPB in
2013.
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This
final rule clarifies, revises, or amends provisions regarding force-placed
insurance notices, policies and procedures, early intervention, and
loss mitigation requirements under Regulation X’s servicing provisions;
and prompt crediting and periodic statement requirements under Regulation
Z’s servicing provisions. The final rule also addresses proper compliance
regarding certain servicing requirements when a person is a potential
or confirmed successor in interest, is a debtor in bankruptcy, or
sends a cease communication request under the Fair Debt Collection
Practices Act. The final rule also makes technical corrections to
several provisions of Regulations X and Z. The CFPB is issuing concurrently
with this final rule an interpretive rule under the Fair Debt Collection
Practices Act relating to servicers’ compliance with certain mortgage
servicing rules. The final rule is effective April 19, 2018 (Consumer
Financial Protection Bureau, Regulation X and Consumer Financial Protection Bureau, Regulation Z, Docket CFPB–2014–0033) and was published in
the Federal Register on October 19, 2016.CFPB’s Regulation Z
The CFPB is issuing this final rule amending certain
Regulation Z mortgage servicing rules issued in 2016 relating to the
timing for servicers to transition to providing modified or unmodified
periodic statements and coupon books in connection with a consumer’s
bankruptcy case.
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The final rule is effective April 19, 2018 (Consumer Financial Protection
Bureau, Regulation Z, Docket CFPB-2017-0030) and was published in the Federal Register on March 12, 2018.Proposed Rules
The Board and the Office of the Comptroller
of the Currency (OCC) are seeking comment on a proposal that would
modify the enhanced supplementary leverage ratio standards for U.S.
top-tier bank holding companies identified as global systemically
important bank holding companies, or G-SIBs, and certain of their
insured depository institution subsidiaries.
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Specifically, the proposal would
modify the current 2 percent leverage buffer, which applies to each
G-SIB, to equal 50 percent of the firm’s G-SIB risk-based capital
surcharge. The proposal also would require a Board- or OCC-regulated
insured depository institution subsidiary of a G-SIB to maintain a
supplementary leverage ratio of at least 3 percent plus 50 percent
of the G-SIB risk-based surcharge applicable to its top-tier holding
company in order to be deemed “well capitalized” under the Board’s
and the OCC’s prompt corrective action rules. Consistent with this
approach to establishing enhanced supplementary leverage ratio standards
for insured depository institutions, the OCC is proposing to revise
the methodology it uses to identify which national banks and federal
savings associations are subject to the enhanced supplementary leverage
ratio standards to ensure that they apply only to those national banks
and federal savings associations that are subsidiaries of a Board-identified
G-SIB. The Board also is seeking comment on a proposal to make conforming
modifications to the G-SIB leverage buffer of the Board’s total loss-absorbing
capacity and long-term debt requirements and other minor amendments
to the buffer levels, covered intermediate holding company conformance
period, methodology for calculating the covered intermediate holding
company long-term debt amount, and external total loss-absorbing capacity
risk-weighted buffer. Comments on this notice of proposed rulemaking
must be received by May 21, 2018 (Docket R-1604).The Board is inviting comment on a notice of proposed
rulemaking that would integrate the Board’s regulatory capital rule
(capital rule) and the Board’s Comprehensive Capital Analysis and
Review (CCAR) and stress test rules in order to simplify the capital
regime applicable to firms subject to the capital plan rule.
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The proposal would
amend the Board’s capital plan rule, capital rule, and stress testing
rules, and make amendments to the Stress Testing Policy Statement
that was proposed for public comment on December 15, 2017. Under the
proposal, the Board’s supervisory stress test would be used to establish
the size of a stress capital buffer requirement and a stress leverage
buffer requirement. The proposal would apply to bank holding companies
with $50 billion or more in total consolidated assets and U.S. intermediate
holding companies of foreign banking organizations established pursuant
to Regulation YY. The proposal would not apply to any community bank,
any bank holding company with total consolidated assets of less than
$50 billion, or to any state member bank or savings and loan holding
company. The proposal would be effective on December 31, 2018. Under
the proposal, a firm’s first stress capital buffer and stress leverage
buffer requirements would generally be effective on October 1, 2019.
Comments on this notice of proposed rulemaking must be received by
June 25, 2018 (Docket R-1603).
