Page 5 - January 2018

FRB Proposes Amendments to its Policy under FRB’s Regulation YY pursuant to the Dodd-
Statement on the Scenario Design Frank Act and FRB’s capital plan rule. The proposed
policy statement outlines the key principles and
Framework for Stress Testing. policies governing the FRB’s approach to the
development, implementation, and validation of
FRB proposed amendments to its policy statement on models used in the supervisory stress test. Comments
the scenario design framework for stress testing. The are due 01/22/2018. The notice may be viewed at:
proposed amendments to the policy statement would https://www.gpo.gov/fdsys/pkg/FR-2017-12-
clarify when FRB may adopt a change in the 15/pdf/2017-26857.pdf. Federal Register, Vol. 82,
unemployment rate in the severely adverse scenario No. 240, 12/15/2017, 59528-59533.
of less than 4 percentage points; institute a
countercyclical guide for the change in the house
price index in the severely adverse scenario; and FRB Issues Aggregate Global Indicator
provide notice that FRB plans to incorporate Amounts.
wholesale funding costs for banking organizations in
the scenarios. FRB would continue to use the policy FRB issues notice of the aggregate global indicator
statement to develop the macroeconomic scenarios amounts for purposes of a calculation for 2017,
and additional scenario components that are used in which is required under FRB’s rule regarding risk-
the supervisory and company-run stress tests based capital surcharges for global systemically
conducted under FRB’s stress test rules and the important bank holding companies. The amounts are
FRB’s capital plan rule. Comments are due applicable 12/18/2017. The notice may be viewed at:
01/22/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2017-12-
https://www.gpo.gov/fdsys/pkg/FR-2017-12- 18/pdf/2017-27161.pdf. Federal Register, Vol. 82,
15/pdf/2017-26858.pdf. Federal Register, Vol. 82, No. 241, 12/18/2017, 60014-60015.
No. 240, 12/15/2017, 59533-59547.
FRB Announces Production of Rates
FRB Proposes Amendments to Regulation Based on Data for Repurchase
M. Agreements.

FRB proposed to revise its Regulation M, which was FRB announced the production and publication of
issued to implement the Consumer Leasing Act three rates by the Federal Reserve Bank of New
(CLA). Title X of the Dodd-Frank Act transferred York, in coordination with the U.S. Office of
rulemaking authority for a number of consumer Financial Research, based on data for overnight
financial protection laws, including the CLA, from repurchase agreement transactions on Treasury
FRB to the Bureau of Consumer Financial Protection securities. FRB intends to begin publishing the three
(CFPB). Under section 1029 of the Dodd-Frank Act, rates during the second quarter of 2018. The notice
however, FRB retains authority to issue rules for may be viewed at:
motor vehicle dealers that are predominantly engaged https://www.gpo.gov/fdsys/pkg/FR-2017-12-
in the sale and servicing of motor vehicles, the 12/pdf/2017-26761.pdf. Federal Register, Vol. 82,
leasing and servicing of motor vehicles, or both, and No. 237, 12/12/2017, 58397-58400.
are otherwise not subject to the CFPB’s regulatory
authority. FRB is proposing to revise its Regulation FRB Requests Comment on Stress Test
M and the accompanying Official Staff Commentary Models.
to reflect this change in the persons covered by the
regulation. Comments are due 03/05/2018. The FRB has issued an enhanced disclosure of the models
notice may be viewed at: used in the Federal Reserve’s supervisory stress test
https://www.gpo.gov/fdsys/pkg/FR-2018-01- conducted under FRB’s Regulation YY pursuant to
03/pdf/2017-27325.pdf. Federal Register, Vol. 83, the Dodd-Frank Act and FRB’s capital plan rule.
No. 2, 01/03/2018, 286-291. FRB requests comment on the enhanced disclosure of
the models. Comments are due 01/22/2018. The
FRB Proposes Stress Testing Policy notice may be viewed at:
Statement. https://www.gpo.gov/fdsys/pkg/FR-2017-12-
15/pdf/2017-26856.pdf. Federal Register, Vol. 82,
FRB issued a proposed policy statement on the No. 239, 12/15/2017, 59547-59555.
approach to supervisory stress testing conducted

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