Category: Banking & Consumer Reg Policy

Agencies adopt supplementary leverage ratio notice of proposed rulemaking

Board of Governors of the Federal Reserve SystemFederal Deposit Insurance CorporationOffice of the Comptroller of the Currency

For immediate release
July 9, 2013

Agencies Adopt Supplementary Leverage Ratio Notice of Proposed Rulemaking
The Federal R…

Agencies release public sections of resolution plans for four institutions

Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation

Agencies Release Public Sections of Resolution Plans for Four Institutions

The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board on Tuesday made available the public portions of resolution plans for four firms with U.S. nonbank assets between $100 billion and $250 billion.

The Dodd-Frank Wall Street Reform and Consumer Protection Act requires that bank holding companies with total consolidated assets of $50 billion or more and nonbank financial companies designated by the Financial Stability Oversight Council submit resolution plans to the FDIC and Federal Reserve. Each plan must describe the company’s strategy for rapid and orderly resolution in the event of material financial distress or failure of the company.

Firms are required to file their initial resolution plans on a staggered schedule. The firms whose resolution plans were due on July 1, 2013 are BNP Paribas SA, HSBC Holdings plc, Royal Bank of Scotland Group plc, and Wells Fargo & Company. Larger firms with $250 billion or more in total U.S. nonbank assets first submitted plans last year and must submit their second plans by October 1, 2013. Firms with more than $50 billion but less than $100 billion in total U.S. nonbank assets must submit their initial resolution plans by December 31, 2013.

By regulation, resolution plans must be divided into a public section and a confidential section. The public sections of the plans are available on the FDIC and Federal Reserve websites.

Following submission of the resolution plans, the FDIC and Federal Reserve will preliminarily review the plan for informational completeness within 60 days and then review each plan for its compliance with the requirements of the rule. 

Banking agencies issue host state loan-to-deposit ratios

Board of Governors of the Federal Reserve System 
Office of the Comptroller of the Currency 
Federal Deposit Insurance Corporation

Banking Agencies Issue Host State Loan-to-Deposit Ratios

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency today issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios update data released on June 29, 2012.

In general, section 109 prohibits a bank from establishing or acquiring a branch or branches outside of its home state primarily for the purpose of deposit production. Section 109 also prohibits branches of banks controlled by out-of-state bank holding companies from operating primarily for the purpose of deposit production.

Section 109 provides a process to test compliance with the statutory requirements. The first step in the process involves a loan-to-deposit ratio screen that compares a bank’s statewide loan-to-deposit ratio to the host state loan-to-deposit ratio for banks in a particular state.

A second step is conducted if a bank’s statewide loan-to-deposit ratio is less than one-half of the published ratio for that state or if data are not available at the bank to conduct the first step. The second step requires the appropriate banking agency to determine whether the bank is reasonably helping to meet the credit needs of the communities served by the bank’s interstate branches.

A bank that fails both steps is in violation of section 109 and is subject to sanctions by the appropriate banking agency.

The updated host state loan-to-deposit ratios are attached.

Section 109 Host State Loan to Deposit Ratios (32 KB PDF)

Federal Reserve Board proposes new data collection requirements related to money market instruments

Release Date: June 25, 2013
For immediate release
The Federal Reserve Board on Tuesday proposed new data collection requirements related to selected money market instruments. To assist the Federal Reserve in monitoring money market conditions, the pro…

Agencies release list of distressed or underserved nonmetropolitan middle-income geographies

Board of Governors of the Federal Reserve System
Office of the Comptroller of the Currency
Federal Deposit Insurance Corporation

Agencies Release List of Distressed or Underserved Nonmetropolitan Middle-Income Geographies

WASHINGTON–The federal bank and thrift regulatory agencies today announced the availability of the 2013 list of distressed or underserved nonmetropolitan middle-income geographies where revitalization or stabilization activities will receive Community Reinvestment Act (CRA) consideration as “community development.”

“Distressed nonmetropolitan middle-income geographies” and “underserved nonmetropolitan middle-income geographies” are designated by the agencies in accordance with their CRA regulations.  The criteria for designating these areas are available on the Federal Financial Institutions Examination Council (FFIEC) website (http://www.ffiec.gov/cra).  The designations continue to reflect local economic conditions, including triggers such as unemployment, poverty, and population changes.

As with past releases, the agencies incorporate a one-year lag period for geographies that are no longer designated as distressed or underserved in the current release.  Geographies subject to this one-year lag period are eligible to receive consideration for community development activities for 12 months after publication of the current list.

The current and previous years’ lists can be found on the FFIEC website, along with information about the data sources used to generate those lists.  In addition, although the 2010 Census demographic profiles for American Samoa, Commonwealth of the Northern Mariana Islands, Guam, and U.S. Virgin Islands have been released, the full Census summary files for these areas are not yet available. The 2013 list will be updated when the full Census summary files become available.

Attachments:

2013 List of Middle-Income Nonmetropolitan Distressed or Underserved Geographies
2013 Distressed or Underserved Nonmetropolitan Middle-Income Geographies Source Information and Methodology

Federal Reserve Board approves interim final rule on treatment of uninsured U.S. branches and agencies of foreign banks under section 716 of Dodd-Frank

Release Date: June 5, 2013
For immediate release
The Federal Reserve Board on Wednesday approved an interim final rule clarifying the treatment of uninsured U.S. branches and agencies of foreign banks under the so-called swaps push-out provision of th…

Exemption for small debit card issuers from interchange fee standards working as intended

Release Date: May 23, 2013
For immediate release
The exemption designed to protect small debit card issuers from interchange fee standards applied to large issuers is working as intended, a Federal Reserve Board report released Thursday showed.
Small …

FRB: Press Release – Banking/Consumer Reg Policy 1970-01-01 00:00:00

[unable to retrieve full-text content]

Federal Reserve Board announces that results of company-run, midyear stress tests are due on July 5

Release Date: May 13, 2013
For immediate release
Eighteen large U.S. bank holding companies are required to submit the results of their company-run, midyear stress tests to the Federal Reserve on July 5, the Federal Reserve said in instructions to tho…

Federal Reserve provides additional information on borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley

[unable to retrieve full-text content]Federal Reserve provides additional information on borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley