Page 3 - June 2018

Agencies Finalize Amendments to the addition, the agencies are proposing to make
Securities Transaction Settlement Cycle. amendments to their stress testing regulations so that
covered banking organizations that have adopted
The Federal Deposit Insurance Corporation (FDIC), ASU 2016–13 would not include the effect of ASU
and the Office of the Comptroller of the Currency 2016–13 on their provisioning for purposes of stress
(OCC) finalized a rule to shorten the standard testing until the 2020 stress test cycle. Finally, the
settlement cycle for securities purchased or sold by agencies are proposing to make conforming
national banks, federal savings associations, and amendments to their other regulations that reference
FDIC-supervised institutions. The Agencies’ final credit loss allowances. Comments are due
rule is consistent with an industry-wide transition to a 07/13/2018. The notice may be viewed at:
two business-day settlement cycle, which is designed https://www.gpo.gov/fdsys/pkg/FR-2018-05-
to reduce settlement exposure and align settlement 14/pdf/2018-08999.pdf. Federal Register, Vol. 83,
practices across all market participants. The final rule No. 93, 05/14/2018, 22312-22339.
is effective 10/01/2018. The notice may be viewed at:
https://www.gpo.gov/fdsys/pkg/FR-2018-06- Agencies Extend Comment Period from
07/pdf/2018-12267.pdf. Federal Register, Vol. 83, Proposed Amendments to Enhanced
No. 110, 06/07/2018, 26347-26349. Supplementary Leverage Ratio
Standards.
Agencies Propose Amendments to
Regulatory Capital Rules. The Board of Governors of the Federal Reserve
System (FRB) and the Office of the Comptroller of
The Board of Governors of the Federal Reserve the Currency (OCC) published proposed amendments
System (FRB), the Federal Deposit Insurance to the enhanced supplementary leverage ratio
Corporation (FDIC), and the Office of the standards for U.S. top-tier bank holding companies
Comptroller of the Currency (OCC) issued a joint identified as global systemically important bank
proposal to address changes to U.S. generally holding companies, or GSIBs, and certain of their
accepted accounting principles (U.S. GAAP) insured depository institution subsidiaries in the
described in Accounting Standards Update No. 2016– Federal Register on 04/19/2018. The Agencies are
13, Topic 326, Financial Instruments—Credit Losses now extending the comment period for the proposed
(ASU 2016–13), including banking organizations’ amendments, comments are now due 06/25/2018.
implementation of the current expected credit losses The notice may be viewed at:
methodology. Specifically, the proposal would revise https://www.gpo.gov/fdsys/pkg/FR-2018-05-
the agencies’ regulatory capital rules to identify 25/pdf/2018-11336.pdf. Federal Register, Vol. 83,
which credit loss allowances under the new No. 102, 05/24/2018, 24233.
accounting standard are eligible for inclusion in
regulatory capital and to provide banking CFPB Requests Comment on Information
organizations the option to phase in the day-one Collection.
adverse effects on regulatory capital that may result
from the adoption of the new accounting standard. The Bureau of Consumer Financial Protection
The proposal also would amend certain regulatory (CFPB) announced it seeks comment on the
disclosure requirements to reflect applicable changes information collection titled Consumer Compliant
to U.S. GAAP covered under ASU 2016–13. In

JUNE 2018
1