Transmittal Archive

The Board announced temporary actions aimed at increasing the availability of intraday credit extended by Federal Reserve Banks on both a collateralized and uncollateralized basis. More... These temporary actions are consistent with the series of actions the Board has announced to support the flow of credit to households and businesses and to mitigate the disruptions from the coronavirus disease 2019 (COVID-19). In particular, these actions are consistent with and indeed reinforce the Board’s efforts to encourage regular use of intraday credit by healthy financial institutions. For more information, see the Policy Statement on Temporary Actions to Support the Flow of Credit to Households and Businesses by Encouraging Use of Intraday Credit on the Board’s website: https://www.federalreserve.gov/newsevents/pressreleases/files/other20200423a1.pdf.

The Board is amending its Regulation D (Reserve Requirements of Depository Institutions) to delete the numeric limits on certain kinds of transfers and withdrawals that may be made each month from “savings deposits.” More... The amendments are intended to allow depository institution customers more convenient access to their funds and to simplify account administration for depository institutions. There are no mandatory changes to deposit reporting associated with the amendments. The interim final rule is effective April 24, 2020 (Regulation D, Docket R-1715) and was published in the Federal Register on April 28, 2020. Comments on the interim final rule must be received by June 29, 2020.

In light of recent disruptions in economic conditions caused by COVID-19 and current strains in U.S. financial markets, the Board issued an interim final rule that excepts certain loans that are guaranteed under the Small Business Administration’s Paycheck Protection Program from the requirements of section 22(h) of the Federal Reserve Act and the corresponding provisions of the Board’s Regulation O. More... The interim final rule is effective April 22, 2020 (Regulation O, Docket R-1714), the same day it was published in the Federal Register.

To provide liquidity to small business lenders and the broader credit markets, to help stabilize the financial system, and to provide economic relief to small businesses nationwide, the Board authorized each of the Federal Reserve Banks to participate in the Paycheck Protection Program Lending Facility (PPPLF), pursuant to section 13(3) of the Federal Reserve Act. More... Under the PPPLF, each of the Federal Reserve Banks will extend non-recourse loans to eligible financial institutions to fund loans guaranteed by the Small Business Administration under the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). To facilitate use of this Federal Reserve facility, the Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) adopted this interim final rule to allow banking organizations to neutralize the regulatory capital effects of participating in the facility. This treatment is similar to the treatment extended previously by the agencies in connection with the Federal Reserve’s Money Market Mutual Fund Liquidity Facility (MMLF). In addition, as mandated by section 1102 of the CARES Act, loans originated under the Small Business Administration’s Paycheck Protection Program will receive a 0 percent risk weight under the agencies’ regulatory capital rule. The interim final rule is effective April 13, 2020 (Regulation Q, Docket R-1712), the same day it was published in the Federal Register.

The Board issued an interim final rule that revises, on a temporary basis for bank holding companies, savings and loan holding companies, and U.S. intermediate holding companies of foreign banking organizations, the calculation of total leverage exposure, the denominator of the supplementary leverage ratio in the Board’s capital rule, to exclude the on-balance sheet amounts of U.S. More... Treasury securities and deposits at Federal Reserve Banks. This exclusion has immediate effect and will remain in effect through March 31, 2021. The Board adopted this interim final rule to allow bank holding companies, savings and loan holding companies, and intermediate holding companies subject to the supplementary leverage ratio increased flexibility to continue to act as financial intermediaries. The tier 1 leverage ratio is not affected by this rulemaking. The interim final rule is effective April 14, 2020 (Regulation Q, Docket R-1707), the same day it was published in the Federal Register.

The Board issued an interim final rule that makes temporary changes to the community bank leverage ratio framework, pursuant to section 4012 of the CARES Act. As of the second quarter 2020, a banking organization with a leverage ratio of 8 percent or greater (and that meets other qualifying criteria) may elect to use the community bank leverage ratio framework. More... The statutory interim final rule also establishes a two-quarter grace period for a qualifying community banking organization whose leverage ratio falls below the 8 percent community bank leverage ratio requirement, so long as the banking organization maintains a leverage ratio of 7 percent or greater. The temporary changes to the community bank leverage ratio framework implemented by this statutory interim final rule will cease to be effective as of the earlier of the termination date of the national emergency concerning COVID-19 declared by the President on March 13, 2020, under the National Emergencies Act, or December 31, 2020. The interim final rule is effective April 23, 2020 (Regulation Q, Docket R-1710), the same day it was published in the Federal Register.

The Board issued an interim final rule that provides a graduated transition to a community bank leverage ratio requirement of 9 percent from the temporary 8 percent community bank leverage ratio requirement. More... When the requirements in the interim final rule become applicable, the community bank leverage ratio will be 8 percent beginning in the second quarter of calendar year 2020, 8.5 percent through calendar year 2021, and 9 percent thereafter. The interim final rule also maintains a two-quarter grace period for a qualifying community banking organization whose leverage ratio falls no more than 1 percentage point below the applicable community bank leverage ratio requirement. The interim final rule was issued to provide community banking organizations with sufficient time and clarity to meet the 9 percent leverage ratio requirement under the community bank leverage ratio framework while they also focus on supporting lending to creditworthy households and businesses given the recent strains on the U.S. economy caused by the COVID-19 emergency. The interim final rule is effective April 23, 2020 (Regulation Q, Docket R-1711), the same day it was published in the Federal Register.

The Board adopted a rule that simplifies the Board’s capital framework while preserving strong capital requirements for large firms. The final rule integrates the Board’s regulatory capital rule with the Comprehensive Capital Analysis and Review (CCAR), as implemented through the Board’s capital plan rule. More... The final rule makes amendments to the capital rule, capital plan rule, stress test rules, and Stress Testing Policy Statement. Under the final rule, the Board will use the results of its supervisory stress test to establish the size of a firm’s stress capital buffer requirement, which replaces the static 2.5 percent of risk-weighted assets component of a firm’s capital conservation buffer requirement. Through the integration of the capital rule and CCAR, the final rule removes redundant elements of the current capital and stress testing frameworks that currently operate in parallel rather than together, including the CCAR quantitative objection and the assumption that a firm makes all capital actions under stress. The final rule applies to bank holding companies and U.S. intermediate holding companies of foreign banking organizations that have $100 billion or more in total consolidated assets. The final rule is effective May 18, 2020 (Regulation Q, Regulation Y, and Regulation YY, Docket R-1603) and was published in the Federal Register on March 18, 2020.

To provide liquidity to the money market sector, small business lenders, and the broader credit markets in order to stabilize the financial system, the Board authorized the establishment of the MMLF and the PPPLF, pursuant to section 13(3) of the Federal Reserve Act. More... To facilitate use of these Federal Reserve facilities, and to ensure that the effects of their use are consistent and predictable under the Liquidity Coverage Ratio (LCR) rule, the Board, the FDIC, and the OCC adopted an interim final rule to require banking organizations to neutralize the effect under the LCR rule of participating in the MMLF and the PPPLF. The interim final rule is effective May 6, 2020 (Regulation WW, Docket R-1717), the same day it was published in the Federal Register.

The Board, the FDIC, and the OCC adopted an interim final rule to amend the agencies’ regulations requiring appraisals of real estate for certain transactions. More... The interim final rule defers the requirement to obtain an appraisal or evaluation for up to 120 days following the closing of a transaction for certain residential and commercial real estate transactions, excluding transactions for acquisition, development, and construction of real estate. Regulated institutions should make best efforts to obtain a credible valuation of real property collateral before the loan closing, and otherwise underwrite loans consistent with the principles in the agencies’ Standards for Safety and Soundness and Real Estate Lending Standards. The agencies are providing this relief to allow regulated institutions to expeditiously extend liquidity to creditworthy households and businesses in light of recent strains on the U.S. economy as a result of the national emergency declared in connection with COVID-19. The interim final rule is effective April 17, 2020 through December 31, 2020 (Regulation Y, Docket R-1713) and was published in the Federal Register on April 17, 2020.