Regulatory Updates Archive
Restructuring of the check processing operations in the Sixth and Eighth Districts, Regulation CC
Released by the Board of Governors of the Federal Reserve System
Restructuring of the check processing operations in the Sixth and Eighth Districts, Regulation CC
Schedule of upcoming postings to the Board's web site
List of items posted to the Board's web site over the past two weeks
Comptroller Dugan Tells Lenders that Unprecedented Home Equity Loan Losses Show Need for Higher Reserves and Return to Stronger Underwriting Practices
Comptroller of the Currency John C. Dugan said today that accelerating losses in the home equity business show the need to build reserves and to return to the stronger underwriting standards of past years.
Complete Release: http://www.occ.treas.gov/ftp/release/2008-58.htm
Federal Reserve, European Central Bank, and Swiss National Bank announce an expansion of liquidity measures
Released by the Board of Governors of the Federal Reserve System
Schedule of upcoming postings to the Board's web site
List of items posted to the Board's web site over the past two weeks
Community Reinvestment Act: Income Level, Median Family Income
U.S. Census and Department of Housing and Urban Development data are used to determine income levels of geographies in Community Reinvestment Act performance evaluations.
Complete Bulletin: http://www.occ.gov/ftp/bulletin/2008-9.html
Lending Limits: Interim Final Rule
Interim final rule allows the OCC to approve exceptions to the national bank lending limit for essential funding transactions in emergencies.
Complete Bulletin: http://www.occ.gov/ftp/bulletin/2008-8.html
FFIEC Information Technology Examination Handbook: Business Continuity Planning Booklet
Revised Business Continuity Planning guidance for financial institutions and their service providers to identify and minimize the effects of natural and other disasters.
Complete Bulletin: http://www.occ.gov/ftp/bulletin/2008-6.html
Flood Disaster Protection Act: Flood Hazard Determination Practices
Entities should rely on the Community Status Book rather than the Flood Map Status Information Service when determining whether a community is in a flood hazard area.
Complete Bulletin: http://www.occ.gov/ftp/bulletin/2008-4.html
Notary and Bank Seals: Guidance on Notary or Bank Seal Requirements
To enable banks to file more applications electronically, the OCC no longer requires banks to notarize or affix their seals to certain documents.
Complete Bulletin: http://www.occ.gov/ftp/bulletin/2008-2.html
Revisions to the Consolidated Reports of Condition and Income for 2008
The Federal Financial Institutions Examination Council (FFIEC) has approved revisions to the reporting requirements for the Consolidated Reports of Condition and Income (Call Report).
Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2008/fil08013.html
Office of the Comptroller of the Currency Lowers Assessment Fees for National Banks
OCC News Release: "Office of the Comptroller of the Currency Lowers Assessment Fees for National Banks," dated February 19, 2008.
The Office of the Comptroller of the Currency today announced that it was recalibrating its assessment structure with the result that all national banks will pay modestly lower assessment fees, effective March 31, 2008.
Complete News Release: http://www.occ.gov/ftp/release/2008-19.htm
Final Regulation Implementing Section 312 - Special Due Diligence Programs for Certain Foreign Accounts
The Financial Crimes Enforcement Network (FinCEN) has issued the attached final rule to implement the enhanced due diligence requirements for correspondent accounts for certain foreign banks set forth in Section 312 of the USA PATRIOT Act.
Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2007/fil07113.html
Agencies issue proposed rules and guidelines that address accuracy and integrity of consumer report information and rules to allow direct disputes
The Board of Governors of the Federal Reserve System has issued the following press release(s):
Schedule of upcoming postings to the Board's web site
List of items posted to the Board's web site over the past two weeks
Supervision of National Trust Banks--Revised Guidance: Capital and Liquidity
OCC 2007-21, "Supervision of National Trust Banks--Revised Guidance: Capital and Liquidity," dated June 26, 2007.
Guidance clarifies the OCC's capital and liquidity policy for national trust banks.
Select http://www.occ.gov/occ_current.htm to go to the bulletins page, then select a version of OCC 2007-21.
Working With Residential Borrowers
FDIC Encourages Institutions to Consider Workout Arrangements for Borrowers Unable to Make Mortgage Payments
The Federal Deposit Insurance Corporation (FDIC) encourages financial institutions to work constructively with residential borrowers who are financially unable to make their contractual payments on their home loans. Prudent workout arrangements are generally in the long-term best interest of both the financial institution and the borrower.
Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2007/fil07035.html
Compliance Examination Handbook
Revised Handbook Now Available
The FDIC has revised its Compliance Examination Handbook. The new handbook contains the FDIC's compliance examination policies and procedures in effect as of June 2006. It also includes revised Community Reinvestment Act (CRA) examination procedures and performance evaluations. The handbook will be available in electronic format only and can be accessed on the FDIC's Web site at http://www.fdic.gov/regulations/compliance/handbook/index.html.
Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2007/fil07010.html
Repeal of Certain Reporting Requirements
Final Rule Repealing Part 349
The FDIC Board of Directors has approved the attached final rule repealing FDIC Part 349, Reports and Public Disclosure of Indebtedness of Executive Officers and Principal Shareholders to a State Nonmember Bank and its Correspondent Banks. The final rule became effective on December 22, 2006.
Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2007/fil07007.html
AFS Response to New Regulatory Guidance for Commercial Real Estate Lending
On December 6, 2006, the Federal Bank Regulatory Agencies issued final guidance on risk management practices for commercial real estate lending. The guidance targets financial institutions with significant commercial real estate lending operations. The guidance stresses that the sophistication of a bank's CRE risk management processes should be commensurate with the size of the portfolio, and outlines practices for an effective risk management framework that includes:
- Credit underwriting standards and policies
- Board and senior management reporting
- Portfolio management and market analysis
- Management information systems
- Portfolio stress testing and sensitivity analysis
- Credit risk review function
Posting of bulletin OCC 2006-9, "Risk-Based Capital--Securities Borrowing Transactions: Final Rule"
The following document is available on the OCC's Web site:
OCC 2006-9, "Risk-Based Capital--Securities Borrowing Transactions: Final Rule," dated February 23, 2006.
Final rule: permits banks applying the market risk rule to hold capital against the difference between market value of a borrowed security and cash collateral.
Select http://www.occ.treas.gov/occ_current.htm to go to the bulletins page, then select a version of OCC 2006-9.
USA PATRIOT Act
Final Regulation Implementing Section 312 of USA PATRIOT Act
The Financial Crimes Enforcement Network (FinCEN) has announced the final regulation implementing the international correspondent banking provisions and the private banking provisions of Section 312 of the USA PATRIOT Act. Concurrently, FinCEN has released a further notice of proposed rulemaking on one key issue regarding correspondent banking. To view the final and proposed rules, along with a press release and fact sheet from FinCEN, visit FinCEN's Web site at http://www.fincen.gov/section312.pdf.
Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2005/fil12805.html
Posting of bulletin OCC 2006-4, "Bank Secrecy Act/Anti-Money Laundering: Joint Statement on Sharing Suspicious Activity Reports with Controlling Companies"
The following document is available on the OCC's Web site:
OCC 2006-4, "Bank Secrecy Act/Anti-Money Laundering: Joint Statement on Sharing Suspicious Activity Reports with Controlling Companies," dated January 27, 2006.
Joint Statement: A foreign bank's U.S. branch may disclose a suspicious activity report to its head office; a U.S. bank may disclose the same to controlling companies.
Select http://www.occ.treas.gov/occ_current.htm to go to the bulletins page, then select a version of OCC 2006-4.
Capital Standards
Joint Final Rule on Securities Borrowing Transactions
The FDIC, along with the Federal Reserve Board and the Office of the Comptroller of the Currency, has issued the attached joint final rule clarifying the capital treatment for securities borrowing transactions for banks and bank holding companies that are subject to the Market Risk Capital Rule. Securities borrowing transactions are generally used in conjunction with short sales, securities fails (securities sold but not made available for delivery on the settlement date), and option and arbitrage positions. The final rule takes effect on February 22, 2006.
Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2006/fil06017.html
Community Reinvestment Act Joint Final Rules
The FDIC, Federal Reserve Board and the Office of the Comptroller of the Currency have published joint final rules regarding the Community Reinvestment Act (CRA). The rules, which become effective September 1, 2005, provide regulatory relief for smaller community banks and preserve the importance of community development in the CRA evaluations of these banks.
Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2005/fil7905.html
Posting of bulletin OCC 2005-7, "Fair Credit Reporting Act (FCRA): Final rule: Prescreen Opt-Out Disclosure"
The following document is available on the OCC's Web site:
OCC 2005-7, "Fair Credit Reporting Act (FCRA): Final rule: Prescreen Opt-Out Disclosure," dated dated March 24, 2005.
This bulletin announces that the Federal Trade Commission published a final rule improving the required notice to consumers of their right to opt out of prescreened solicitations for credit or insurance. The rule was published on January 31, 2005, and becomes effective August 1.
Select http://www.occ.treas.gov/occ_current.htm to go to the bulletins page, then select a version of OCC 2005-7.
Bank Secrecy Act
Revised Bank Secrecy Act/Anti-Money Laundering Examination Manual
The Federal Financial Institutions Examination Council (FFIEC) released the revised Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual on July 28, 2006. The manual can be accessed on the FFIEC BSA/AML InfoBase at http://www.ffiec.gov/bsa_aml_infobase/default.htm.
Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2006/fil06071.html
Approval of final rule expanding the definition of a small bank holding company
The Board of Governors of the Federal Reserve System has issued the following press release(s):
Approval of final rule expanding the definition of a small bank holding company
http://www.federalreserve.gov/boarddocs/press/bcreg/2006/20060227/default.htm
Schedule of upcoming postings to the Board's web site
List of items posted to the Board's web site over the past two weeks
Fair Credit Reporting Act
Revised Examination Procedures
The Federal Financial Institution Examinations Council (FFIEC) Task Force on Consumer Compliance has approved the attached revised Fair Credit Reporting Act (FCRA) examination procedures, which incorporate the new requirements created by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act). The new procedures are effective with the issuance of this FIL.
Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2006/fil06018.html
Banking Agencies Announce Revised Plan for Implementation of Basel II Framework
The four Federal banking agencies (the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision) today announced their revised plans for the U.S. implementation of the "International Convergence of Capital Measurement and Capital Standards: A Revised Framework," otherwise known as Basel II. The agencies previously announced on April 29, 2005 that they were delaying issuance of a notice of proposed rulemaking (NPR), pending additional analysis of the quantitative impact study (QIS4) submissions. The agencies intend to move forward with an NPR for domestic implementation of Basel II, but plan to introduce additional prudential safeguards in the NPR to address concerns identified in the analysis of the results of the QIS4 conducted with the industry. The agencies expect that the U.S. Basel II proposal will be available in the first quarter of 2006.
