Federal Reserve and FDIC Solicit Public Comments on Proposed Rulemaking Addressing Large Banks’ Financial Stability
On October 14, the Federal Reserve and the FDIC published for public comment an advance notice of proposed rulemaking (ANPR) regarding whether an extra layer of loss-absorbing capacity could improve optionality in resolving a large banking organization or its insured depository institution, and the costs and benefits of such a requirement. The ANPR includes 12 questions put forward by the Federal Reserve and the FDIC. Comments will be accepted for 60 days after publication in the Federal Register.
FDIC Board of Directors Meeting
On October 18, following a meeting of the FDIC Board of Directors, the FDIC announced the following:
- Final Rulemaking on Assessments, Revised Deposit Insurance Assessment Rules: The FDIC adopted a final rule to increase initial base deposit insurance assessment rate schedules by 2 basis points. The FDIC also determined to maintain the Designated Reserve Ratio for the DIF at 2% for 2023. Revised rate schedules will be effective on January 1, 2023 and will become applicable to all insured depository institutions in the first quarterly assessment period of 2023. The FDIC also adopted a final rule incorporating a troubled debt restructuring accounting standards update.
- Proposed Amendments to the Guidelines for Appeals of Material Supervisory Determinations: In connection with the Supervision Appeals Review Committee (SARC), the FDIC has requested comments on proposed amendments to its Guidelines for Appeals of Material Supervisory Determinations. The proposed amendments expand and clarify the role of the agency’s Ombudsman in the supervisory appeals process, require that materials considered by the SARC be shared with both parties to the appeal and allow insured depository institutions to request a stay of a material supervisory determination while an appeal is pending. The notice requests comment within 30 days of publication in the Federal Register.
Federal Agencies Increase Exemption Thresholds
On October 13, the CFPB, the Federal Reserve, and the OCC announced increases in exemption thresholds. The increases are effective January 1, 2023.
- The CFPB, the OCC and the Federal Reserve increased the threshold for exempting loans from special appraisal requirements under the TILA Higher Priced Mortgage Loan Appraisal Rule, from $28,500 to $31,000.
- The CFPB and the Federal Reserve increased consumer credit transactions exempt from the Truth in Lending Act (Regulation Z) from $61,000 to $64,000, and consumer leases exempt from the Consumer Leasing Act (Regulation M) from $61,000 to $64,000.
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