The Board is amending Regulation D (Reserve Requirements of Depository Institutions) to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2017. The Regulation D amendments set the amount of total reservable liabilities of each depository institution that is subject to a 0 percent reserve requirement in 2017 at $15.5 million (up from $15.2 million in 2016). More... This amount is known as the reserve requirement exemption amount. The Regulation D amendments also set the amount of net transaction accounts at each depository institution (over the reserve requirement exemption amount) that is subject to a 3 percent reserve requirement in 2017 at $115.1 million (up from $110.2 million in 2016). This amount is known as the low reserve tranche. The adjustments to both of these amounts are derived using statutory formulas specified in the Federal Reserve Act.

The Board is also announcing changes in two other amounts, the nonexempt deposit cutoff level and the reduced reporting limit, that are used to determine the frequency at which depository institutions must submit deposit reports. The final rule is effective January 18, 2017 (Regulation D at 2-122, Docket R-1553) and was published in the Federal Register on December 19, 2016.

The Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, “the agencies”) are jointly adopting as final and without change the agencies’ interim final rules published in the Federal Register on February 29, 2016, that implemented section 83001 of the Fixing America’s Surface Transportation Act (FAST Act). More... Section 83001 of the FAST Act permits the agencies to conduct a full-scope, on-site examination of qualifying insured depository institutions with less than $1 billion in total assets no less than once during each 18-month period. Prior to enactment of the FAST Act, only qualifying insured depository institutions with less than $500 million in total assets were eligible for an 18-month on-site examination cycle. The final rules, like the interim final rules, generally allow well capitalized and well managed institutions with less than $1 billion in total assets to benefit from the extended 18-month examination schedule. In addition, the final rules adopt as final parallel changes to the agencies’ regulations governing the on-site examination cycle for U.S. branches and agencies of foreign banks, consistent with the International Banking Act of 1978. Finally, through this rulemaking, the FDIC has integrated its regulations regarding the frequency of safety and soundness examinations for state nonmember banks and state savings associations. The final rules are effective January 17, 2017 (Regulation H at 3-150 and Regulation K at 3-500, Docket R-1531) and were published in the Federal Register on December 16, 2016.

The Board, the FDIC, the National Credit Union Administration, and the OCC issued on December 19, 2016, Frequently Asked Questions on the Current Expected Credit Losses Methodology. The agencies developed these frequently asked questions (FAQs) to assist institutions and examiners in their implementation of the new accounting standard for credit losses recently issued by the Financial Accounting Standards Board. More... These FAQs expand upon the agencies’ June 2016 Joint Statement on the New Accounting Standard on Financial Instruments—Credit Losses. 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 is adopting a final rule to make several revisions to its rule regarding risk-based capital surcharges for U.S.-based global systemically important bank holding companies (G-SIB surcharge rule). More... The final rule modifies the G-SIB surcharge rule to provide that a bank holding company subject to the rule should continue to calculate its method 1 score and method 2 score under the rule annually using data reported on the firm’s Banking Organization Systemic Risk Report (FR Y-15) as of December 31 of the previous calendar year. In addition, the final rule clarifies that a bank holding company subject to the G-SIB surcharge rule must calculate its method 2 score using systemic indicator amounts expressed in billions of dollars. The final rule is effective January 17, 2017 (Regulation Q at 3-2100, Docket R-1535) and was published in the Federal Register on December 16, 2016.

The Consumer Financial Protection Bureau (CFPB) issued a final rule amending the official commentary that interprets the requirements of CFPB’s Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). More... Based on the 0.8 percent increase in the average of the CPI-W for the 12-month period ending in November 2016, the exemption threshold will remain at $44 million. Therefore, banks, savings associations, and credit unions with assets of $44 million or less as of December 31, 2016, are exempt from collecting data in 2017. The final rule is effective January 1, 2017 (Consumer Financial Protection Bureau, Regulation C at 6-5200) and was published in the Federal Register on December 21, 2016.

The CFPB is amending the official commentary that interprets the requirements of CFPB’s Regulation Z (Truth in Lending) to reflect a change in the asset-size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan based on the annual percentage change in the average of the CPI-W for the 12-month period ending in November. More... The exemption threshold is adjusted to increase to $2.069 billion from $2.052 billion. The adjustment is based on the 0.8 percent increase in the average of the CPI-W for the 12-month period ending in November 2016. Therefore, creditors with assets of less than $2.069 billion (including assets of certain affiliates) as of December 31, 2016, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2017. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2018. The adjustment to the escrows exemption asset-size threshold will also increase a similar threshold for small-creditor portfolio and balloon-payment qualified mortgages. Balloon-payment qualified mortgages that satisfy all applicable criteria, including being made by creditors that have (together with certain affiliates) total assets below the threshold, are also excepted from the prohibition on balloon payments for high-cost mortgages. The final rule is effective January 1, 2017 (Consumer Financial Protection Bureau, Regulation Z at 6-5600) and was published in the Federal Register on December 21, 2016.

The Board is adopting, and inviting comment on, an interim final rule to amend its regulations for processing requests under the Freedom of Information Act (FOIA) pursuant to the FOIA Improvement Act of 2016. The amendments clarify and update procedures for requesting information from the Board, extend the deadline for administrative appeals, and add information on dispute resolution services. More... The interim final rule is effective December 27, 2016 (Procedural and Organizational Rules, Rules Regarding Availability of Information at 8-190, Docket R-1556), the same day it was published in the Federal Register. Comments on the interim final rule must be received by February 27, 2017.

The Federal Open Market Committee invites comments on this interim final rule amending its Rules Regarding Availability of Information. These revisions conform to recent statutory amendments to FOIA made by the FOIA Improvement Act of 2016, as well as other technical changes intended to clarify existing procedures for requesting information and updating contact information. More... The interim final rule is effective December 27, 2016 (Federal Open Market Committee, Rules Regarding Availability of Information at 8-812), the same day it was published in the Federal Register. Comments on the interim final rule must be received by February 27, 2017.

On September 30, 2016, the Board published in the Federal Register a notice of proposed rulemaking to adopt additional limitations on physical commodity trading activities conducted by financial holding companies under complementary authority granted pursuant to section 4(k) of the Bank Holding Company Act and clarify certain existing limitations on those activities; More... amend the Board’s risk-based capital requirements to better reflect the risks associated with a financial holding company’s physical commodity activities; rescind the findings underlying the Board orders authorizing certain financial holding companies to engage in energy management services and energy tolling; remove copper from the list of metals that bank holding companies are permitted to own and store as an activity closely related to banking; and increase transparency regarding physical commodity activities of financial holding companies through more comprehensive regulatory reporting.

Due to the range and complexity of the issues addressed in the notice of proposed rulemaking, the public comment period has been extended from December 22, 2016 to February 20, 2017. This action will allow interested persons additional time to analyze the proposal and prepare their comments. Comments on this notice of proposed rulemaking must be received by February 20, 2017 (Docket R-1547).