The Board, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration, and the Office of the Comptroller of the Currency (OCC) (collectively, “the agencies”) reissued on April 3, 2019, Frequently Asked Questions on the Current Expected Credit Losses Methodology, with additional frequently asked questions (FAQs) numbered 38 through 46. More... These FAQs were developed by the agencies to assist institutions and examiners in their implementation of the new accounting standard for credit losses recently issued by the Financial Accounting Standards Board. The agencies plan to publish additional FAQs and/or update existing FAQs periodically (Guidance, Allowance for Loan and Lease Losses at 3-1489).

The Board, the Farm Credit Administration, the FDIC, the Federal Housing Finance Agency, and the OCC adopted an interim final rule amending the agencies’ regulations that require swap dealers and security-based swap dealers under the agencies’ respective jurisdictions to exchange margin with their counterparties for swaps that are not centrally cleared (swap margin rule). More... The swap margin rule takes effect under a phased compliance schedule stretching from 2016 through 2020, and the dealers covered by the rule continue to hold swaps in their portfolios that were entered into before the effective dates of the rule. Those swaps are grandfathered from the swap margin rule’s requirements until they expire according to their terms. There are currently financial services firms located within the United Kingdom (U.K.) that conduct swap dealing activities subject to the swap margin rule. The U.K. has provided formal notice of its intention to withdraw from the European Union (E.U.). If this transpires without a negotiated agreement between the U.K. and E.U., these entities located in the U.K. may not be authorized to provide full-scope financial services to swap counterparties located in the E.U. The agencies’ policy objective in developing the interim final rule is to address one aspect of the scenario likely to ensue, whereby entities located in the U.K. might transfer their existing swap portfolios that face counterparties located in the E.U. over to an affiliate or other related establishment located within the E.U. or the United States. The agencies seek to address industry concerns about the status of grandfathered swaps in this scenario, so the industry can focus on making preparations for swap transfers. These transfers, if carried out in accordance with the conditions of the interim final rule, will not trigger the application of the swap margin rule to grandfathered swaps that were entered into before the compliance dates of the swap margin rule. The interim final rule is effective March 19, 2019 (Regulation KK, Docket R-1654), the same day it was published in the Federal Register.

The Board is amending the capital plan rule to limit the scope of potential objections to a firm’s capital plan on the basis of qualitative deficiencies in the firm’s capital planning process (qualitative objection). More... In particular, effective immediately, the Board will no longer issue a qualitative objection under the capital plan rule to a firm if the firm has been subject to a potential qualitative objection for four consecutive years, and the firm does not receive a qualitative objection in the fourth year of that period. In addition, except for certain firms that have received a qualitative objection in the immediately prior year, the Board will no longer issue a qualitative objection to any firm effective January 1, 2021. The final rule is effective March 13, 2019 (Regulation Y, Docket R-1653), the same day it was published in the Federal Register.

Pursuant to the provisions of the Privacy Act of 1974, notice was given that the Board proposed the establishment of a new system of records, BGFRS-41 “FRB—Ethics Program Records.” More... The new system of records became effective after the comment period closed on April 1, 2019 (Rules Regarding Access to Personal Information under the Privacy Act of 1974, Systems of Records of the Federal Reserve System) and was published in the Federal Register on March 1, 2019.

Pursuant to the provisions of the Privacy Act of 1974, notice was given that the Board proposed the establishment of a new system of records, BGFRS-42“FRB—General File of the Insurance Policy Advisory Committee.” More... The new system of records became effective after the comment period closed on March 11, 2019 (Rules Regarding Access to Personal Information under the Privacy Act of 1974, Systems of Records of the Federal Reserve System) and was published in the Federal Register on February 8, 2019.

The Board, the FDIC, and the OCC are inviting public comment on a notice of proposed rulemaking that would address an advanced approaches banking organization’s regulatory capital treatment of an investment in unsecured debt instruments issued by foreign or U.S. global systemically important banking organizations (G-SIBs) for the purposes of meeting minimum total loss absorbing capacity (TLAC) and, where applicable, long-term debt (LTD) requirements, or unsecured debt instruments issued by G-SIBs that are pari passu or subordinated to such debt instruments. More... Under the proposal, investments by an advanced approaches banking organization in such unsecured debt instruments generally would be subject to deduction from the advanced approaches banking organization’s own regulatory capital. The proposal would reduce both interconnectedness within the financial system and systemic risk. The Board is proposing changes to regulatory reporting requirements resulting from the proposal. The Board is also proposing to require that banking organizations subject to minimum TLAC and LTD requirements under Board regulations publicly disclose their TLAC and LTD issuances in a manner described in this proposal. Comments on this notice of proposed rulemaking must be received by June 7, 2019 (Docket R-1655).