Transmittal Archive

The Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a final rule that requires a banking organization to notify its primary federal regulator of any “computer-security incident” that rises to the level of a “notification incident,” as soon as possible and no later than 36 hours after the banking organization determines that a notification incident has occurred. More... The final rule also requires a bank service provider to notify each affected banking organization customer as soon as possible when the bank service provider determines that it has experienced a computer-security incident that has caused, or is reasonably likely to cause, a material service disruption or degradation for four or more hours. The final rule is effective April 1, 2022 (Regulation Y, Docket R-1736) and was published in the Federal Register on November 23, 2021.

The Consumer Financial Protection Bureau (CFPB) is amending Regulation Z, which implements the Truth in Lending Act, generally to address the anticipated sunset of LIBOR (London interbank offered rate), which is expected to be discontinued for most U.S. dollar (USD) tenors in June 2023. More... Some creditors currently use USD LIBOR as an index for calculating rates for open-end and closed-end products. The CFPB is amending the open-end and closed-end provisions to provide examples of replacement indices for LIBOR indices that meet certain Regulation Z standards. The CFPB also is amending Regulation Z to permit creditors for home equity lines of credit (HELOCs) and card issuers for credit card accounts to transition existing accounts that use a LIBOR index to a replacement index on or after April 1, 2022, if certain conditions are met. This final rule also addresses change-in-terms notice provisions for HELOCs and credit card accounts and how they apply to accounts transitioning away from using a LIBOR index. Lastly, the CFPB is amending Regulation Z to address how the rate reevaluation provisions applicable to credit card accounts apply to the transition from using a LIBOR index to a replacement index. The CFPB is reserving judgment about whether to include references to a 1-year USD LIBOR index and its replacement index in various comments; the CFPB will consider whether to finalize comments proposed on that issue in a supplemental final rule once it obtains additional information. The final rule is effective April 1, 2022 (Consumer Financial Protection Bureau, Regulation Z, Docket CFPB-2020-0014) and was published in the Federal Register on December 8, 2021.