The Board is adopting a new rating system for large financial institutions in order to align with the Federal Reserve’s current supervisory programs and practices for these firms. More... The final rating system applies to bank holding companies and non-insurance, non-commercial savings and loan holding companies with total consolidated assets of $100 billion or more, and U.S. intermediate holding companies of foreign banking organizations established under Regulation YY with total consolidated assets of $50 billion or more. The rating system will assign component ratings for capital planning and positions, liquidity risk management and positions, and governance and controls, and introduces a new rating scale. The Federal Reserve will assign initial ratings under the new rating system in 2019 for bank holding companies and U.S. intermediate holding companies subject to the Large Institution Supervision Coordinating Committee framework and in 2020 for all other large financial institutions. The Board is revising provisions in Regulations K and LL so they will remain consistent with certain features of the new rating system. The final rule is effective February 1, 2019 (Regulation K and Regulation LL, Docket R-1569) and was published in the Federal Register on November 21, 2018.

On August 6, 2018, the Board published a final rule in the Federal Register (83 Fed. Reg. 38460) regarding single-counterparty credit limits for bank holding companies and foreign banking organizations. More... That document included certain incorrect paragraph designations. This document corrects those typographical errors in subparts H and Q of Regulation YY. The final rule is effective December 13, 2018 (Regulation YY, Docket R-1534), the same day it was published in the Federal Register.

The Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, “the agencies”) amended their Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define “small bank” or “small savings association” and “intermediate small bank” or “intermediate small savings association.” More... As required by the CRA regulations, the adjustment to the threshold amount is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The final rule is effective January 1, 2019 (Regulation BB, Docket R-1642) and was published in the Federal Register on December 27, 2018.

The Board, the FDIC, and the OCC are inviting public comment on a proposal that would implement a new approach for calculating the exposure amount of derivative contracts under the agencies’ regulatory capital rule. More... The proposed approach, called the standardized approach for counterparty credit risk (SA-CCR), would replace the current exposure methodology (CEM) as an additional methodology for calculating advanced approaches total risk-weighted assets under the capital rule. An advanced approaches banking organization also would be required to use SA-CCR to calculate its standardized total risk-weighted assets; a non-advanced approaches banking organization could elect to use either CEM or SA-CCR for calculating its standardized total risk-weighted assets. In addition, the proposal would modify other aspects of the capital rule to account for the proposed implementation of SA-CCR. Specifically, the proposal would require an advanced approaches banking organization to use SA-CCR with some adjustments to determine the exposure amount of derivative contracts for calculating total leverage exposure (the denominator of the supplementary leverage ratio). The proposal also would incorporate SA-CCR into the cleared transactions framework and would make other amendments, generally with respect to cleared transactions. The proposed introduction of SA-CCR would indirectly affect the Board’s single counterparty credit limit rule, along with other rules. The OCC also is proposing to update cross-references to CEM and add SA-CCR as an option for determining exposure amounts for derivative contracts in its lending limit rules. Comments on this notice of proposed rulemaking must be received by February 15, 2019 (Docket R-1629).