Page 5 - February 2017 Regulatory Review

be viewed at: https://www.gpo.gov/fdsys/pkg/FR- certain regulatory reports to collect additional
2017-01-18/pdf/2017-01021.pdf. Federal Register, information on nonbank assets and to reduce
Vol. 82, No. 11, 01/18/2017, 5541-5543. reporting burdens for large and noncomplex firms.
For all bank holding companies subject to the capital
FRB Finalizes Rule on Regulation A. plan rule, the final rule simplifies the initial
applicability provisions of both the capital plan and
The Board of Governors of the Federal Reserve the stress test rules, reduces the amount of additional
System (FRB) has issued a final rule on Regulation A capital distributions that a bank holding company
to reflect FRB’s approval of an increase in the rate may make during a capital plan cycle without seeking
for primary credit at each Federal Reserve Bank. The FRB’s prior approval, and extends the range of
secondary credit rate at each Reserve Bank potential as-of dates FRB may use for the trading and
automatically increased by formula as a result of counterparty scenario component used in the stress
FRB’s primary credit rate action. The final rule is test rules. The final rule does not apply to bank
effective 01/23/2017. The final rule may be viewed holding companies with total consolidated assets of
at: https://www.gpo.gov/fdsys/pkg/FR-2017-01- less than $50 billion or to any state member bank or
23/pdf/2017-00612.pdf. Federal Register, Vol. 82, savings and loan holding company. The final rule is
No. 13, 01/23/2017, 7635-7636. effective 03/06/2017. The final rule may be viewed
at: https://www.gpo.gov/fdsys/pkg/FR-2017-02-
FRB Finalizes Rule on Regulation D. 03/pdf/2017-02257.pdf. Federal Register, Vol. 82,
No. 22 02/03/2017, 9308-9330.
FRB has issued a final rule amending Regulation D
to revise the rate of interest paid on balances FRB Finalizes Rule on Total Loss-
maintained to satisfy reserve balance requirements Absorbing Capacity, Long-Term Debt,
(IORR) and the rate of interest paid on excess and Clean Holding Requirements.
balances (IOER) maintained at Federal Reserve
Banks by or on behalf of eligible institutions. The FRB is adopting a final rule to require a U.S. top-tier
final amendments specify that IORR is 0.75 percent bank holding company identified under its rules as a
and IOER is 0.75 percent, a 0.25 percentage point global systemically important bank holding company
increase from their prior levels. The amendments are (covered BHC) to maintain outstanding a minimum
intended to enhance the role of such rates of interest amount of loss-absorbing instruments, including a
in moving the Federal funds rate into the target range minimum amount of unsecured long-term debt. In
established by the Federal Open Market Committee. addition, the final rule prescribes certain additional
The final rule is effective 01/23/2017. The final rule buffers, the breach of which would result in
may be viewed at: limitations on the capital distributions and
https://www.gpo.gov/fdsys/pkg/FR-2017-01- discretionary bonus payments of a covered BHC. The
23/pdf/2017-00613.pdf. Federal Register, Vol. 82, final rule applies similar requirements to the top-tier
No. 13, 01/23/2017, 7636-7637. U.S. intermediate holding company of a global
systemically important foreign banking organization
FRB Finalizes Rule on Regulations Y and with $50 billion or more in U.S. non-branch assets
YY. (covered IHC). The final rule also imposes
restrictions on other liabilities that a covered BHC or
FRB has issued a final rule that revises the capital covered IHC may have outstanding in order to
plan and stress test rules for bank holding companies improve their resolvability and resiliency. The final
with $50 billion or more in total consolidated assets rule is effective 03/27/2017. The final rule may be
and U.S. intermediate holding companies of foreign viewed at: https://www.gpo.gov/fdsys/pkg/FR-2017-
banking organizations. Under the final rule, large and 01-24/pdf/2017-00431.pdf. Federal Register, Vol.
noncomplex firms (those with total consolidated 82, No. 14, 01/24/2017, 8266-8315.
assets of at least $50 billion but less than $250
billion, nonbank assets of less than $75 billion, and FRB Finalizes Rule on Civil Monetary
that are not U.S. global-systemically important Penalties.
banks) are no longer subject to the provisions of
FRB’s capital plan rule whereby FRB may object to a FRB has issued a final rule amending its rules of
capital plan on the basis of qualitative deficiencies in practice and procedure to adjust the amount of each
the firm’s capital planning process. Accordingly, civil monetary penalty (CMP) provided by law within
these firms will no longer be subject to the qualitative its jurisdiction to account for inflation as required by
component of the annual Comprehensive Capital the Federal Civil Penalties Inflation Adjustment Act
Analysis and Review. The final rule also modifies Improvements Act of 2015. The final rule is effective

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