DOCSLIB.ORG

Interim Final Rule; Request for Comments Received, Including Requirements

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Interim Final Rule; Request for Comments Received, Including Requirements 15076 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations rule does not have sufficient federalism September 23, 2020 through September use the title ‘‘Amendments to the implications to warrant the preparation 20, 2021: Capital Rule to Facilitate the Emergency of a federalism summary impact * * * * * Capital Investment Program’’ to statement. facilitate the organization and Alejandro Mayorkas, distribution of the comments. You may G. Executive Order 12988 (Civil Justice Secretary, U.S. Department of Homeland submit comments by any of the Reform) Security. following methods: [FR Doc. 2021–05872 Filed 3–19–21; 8:45 am] Federal eRulemaking Portal: Go to This rule meets the applicable BILLING CODE 9111–97–P https://www.regulations.gov/. Enter standards set forth in section 3(a) and ‘‘Docket ID OCC–2021–0002’’ in the 3(b)(2) of Executive Order 12988. Search Box and click ‘‘Search.’’ Public H. Paperwork Reduction Act DEPARTMENT OF TREASURY comments can be submitted via the ‘‘Comment’’ box below the displayed This rule does not propose new, or Office of the Comptroller of the document information or by clicking on revisions to existing, ‘‘collection[s] of Currency the document title and then clicking the information’’ as that term is defined ‘‘Comment’’ box on the top-left side of under the Paperwork Reduction Act of 12 CFR Parts 3 and 5 the screen. For help with submitting 1995, Public Law 104–13, 44 U.S.C. effective comments please click on chapter 35, and its implementing [Docket ID OCC–2021–0002] ‘‘View Commenter’s Checklist.’’ For regulations, 5 CFR part 1320. As this is RIN 1557–AF09 assistance with the Regulations.gov site, an extension of a temporary final rule please call (877) 378–5457 (toll free) or and would only span 180 days, USCIS FEDERAL RESERVE SYSTEM (703) 454–9859 Monday-Friday, 9am- does not anticipate a need to update the 5pm ET or email regulations@ Form I–589, Application for Asylum 12 CFR Part 217 erulemakinghelpdesk.com. and for Withholding of Removal, Mail: Chief Counsel’s Office, Attn: despite the existing language on the [Regulation Q; Docket No. R–1741 ] Comment Processing, Office of the Comptroller of the Currency, 400 7th Instructions regarding interpreters, RIN 7100–AG11 because it will be primarily Street SW, Suite 3E–218, Washington, rescheduling interviews that were FEDERAL DEPOSIT INSURANCE DC 20219. cancelled due to COVID–19. USCIS will CORPORATION Hand Delivery/Courier: 400 7th Street SW, Suite 3E–218, Washington, DC post updates on its I–589 website, 12 CFR Part 324 20219. https://www.uscis.gov/i-589, and other Instructions: You must include asylum and relevant web pages RIN 3064–AF73 ‘‘OCC’’ as the agency name and ‘‘Docket regarding the new interview ID OCC–2021–0002’’ in your comment. requirements in this regulation, as well Regulatory Capital Rule: Emergency In general, the OCC will enter all as provide personal notice to applicants Capital Investment Program comments received into the docket and via the interview notices issued to publish the comments on the AGENCY: Office of the Comptroller of the applicants prior to their interview. Regulations.gov website without Currency, Treasury (OCC); Board of change, including any business or List of Subjects in 8 CFR Part 208 Governors of the Federal Reserve personal information provided such as System (Board); and Federal Deposit Administrative practice and name and address information, email Insurance Corporation (FDIC). procedure, Aliens, Immigration, addresses, or phone numbers. Reporting and recordkeeping ACTION: Interim final rule; request for Comments received, including requirements. public comment. attachments and other supporting materials, are part of the public record Accordingly, for the reasons set forth SUMMARY: In order to support and and subject to public disclosure. Do not in the preamble, the Secretary of facilitate the timely implementation and include any information in your Homeland Security amends 8 CFR part acceptance of the Congressionally comment or supporting materials that 208 as follows: authorized Emergency Capital Investment Program (ECIP) for the you consider confidential or PART 208—PROCEDURES FOR Department of the Treasury to make inappropriate for public disclosure. You may review comments and other ASYLUM AND WITHHOLDING OF capital investments in low- and related materials that pertain to this REMOVAL moderate-income community financial action by the following method: institutions, the OCC, Board, and FDIC Go to https://www.regulations.gov/. ■ 1. The authority citation for part 208 (together, the agencies) are issuing an Enter ‘‘Docket ID OCC–2021–0002’’ in continues to read as follows: interim final rule that provides that the Search box and click ‘‘Search.’’ preferred stock issued under ECIP Authority: 8 U.S.C. 1101, 1103, 1158, 1226, Click on the ‘‘Documents’’ tab and then qualifies as additional tier 1 capital and 1252, 1282; Title VII of Pub. L. 110–229; 8 the document’s title. After clicking the that subordinated debt issued under CFR part 2; Pub. L. 115–218. document’s title, click the ‘‘Browse ECIP qualifies as tier 2 capital under the Comments’’ tab. Comments can be ■ 2. Section 208.9(h) introductory text is agencies’ capital rule. viewed and filtered by clicking on the revised to read as follows: DATES: This rule is effective on March ‘‘Sort By’’ drop-down on the right side 22, 2021. Comments must be received of the screen or the ‘‘Refine Results’’ § 208.9 Procedure for interview before an on or before May 21, 2021. asylum officer. options on the left side of the screen. ADDRESSES: Supporting materials can be viewed by * * * * * OCC: Commenters are encouraged to clicking on the ‘‘Documents’’ tab and (h) Asylum applicant interpreters. For submit comments through the Federal filtered by clicking on the ‘‘Sort By’’ asylum interviews conducted between eRulemaking Portal, if possible. Please drop-down on the right side of the VerDate Sep<11>2014 16:10 Mar 19, 2021 Jkt 253001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM 22MRR1 jbell on DSKJLSW7X2PROD with RULES Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15077 screen or the ‘‘Refine Documents OCC: Margot Schwadron, Director, or Program (ECIP or Program) through Results’’ options on the left side of the Andrew Tschirhart, Risk Expert, Capital which the Department of the Treasury screen. For assistance with the Policy, (202) 649–6370; or Carl (Treasury) can make capital investments Regulations.gov site, please call (877) Kaminski, Special Counsel, or Daniel in certain low- and moderate-income 378–5457 (toll free) or (703) 454–9859 Perez, Counsel, Chief Counsel’s Office, community financial institutions. The Monday–Friday, 9 a.m.–5 p.m. ET or (202) 649–5490, Office of the Act states that the purpose of these email regulations@ Comptroller of the Currency, 400 7th capital investments is to support the erulemakinghelpdesk.com. Street SW, Washington, DC 20219. efforts of low- and moderate-income The docket may be viewed after the Board: Constance Horsley, Deputy community financial institutions to, close of the comment period in the same Associate Director, (202) 452–5239, among other things, provide loans, manner as during the comment period. Naima Jefferson, Lead Financial grants, and forbearance for small Board: You may submit comments, Institution Policy Analyst, (202) 912– businesses, minority-owned businesses, identified by Docket No. R–1741 and 4613, Senait Kahsay, Senior Financial and consumers in low-income and RIN No. 7100–AG11, by any of the Institution Policy Analyst II, (202) 245– underserved communities, including following methods: 4209, Eusebius Luk, Senior Financial persistent poverty counties, which may Agency Website: http:// Institution Policy Analyst I, (202) 452– be disproportionately impacted by the www.federalreserve.gov. Follow the 2874, Division of Supervision and economic effects of the Coronavirus instructions for submitting comments at Regulation; Benjamin McDonough, 2019 (COVID–19) event.2 Treasury’s https://www.federalreserve.gov/apps/ Associate General Counsel, (202) 452– authority to make capital investments foia/proposedregs.aspx. 2036, Mark Buresh, Senior Counsel, under ECIP is time limited. The Program Email: regs.comments@ (202) 452–5270, Mary Watkins, Counsel, will end six months after the date on federalreserve.gov. Include docket (202) 452–3722, Legal Division, Board of which the national emergency number and RIN in the subject line of Governors of the Federal Reserve concerning the COVID–19 outbreak the message. System, 20th and C Streets NW, terminates.3 Fax: (202) 452–3819 or (202) 452– Washington, DC 20551. Under ECIP, a financial institution is 3102. FDIC: Benedetto Bosco, Chief, Capital generally eligible to receive capital Mail: Ann E. Misback, Secretary, Policy Section, [email protected]; Noah investments from Treasury if it is a low- Board of Governors of the Federal Cuttler, Senior Policy Analyst, ncuttler@ and moderate-income community Reserve System, 20th Street and fdic.gov; [email protected]; financial institution, which is defined Constitution Avenue NW, Washington, Capital Markets Branch, Division of Risk by the Act to include any financial DC 20551. Management Supervision, (202) 898– institution that is (1) a community All public comments are available 6888; Gregory Feder, Counsel, gfeder@ development financial institution or from the Board’s website at http:// fdic.gov; Suzanne Dawley, Counsel, minority depository institution,4 and (2) www.federalreserve.gov/generalinfo/ [email protected]; Francis Kuo, an insured depository institution, bank foia/ProposedRegs.cfm as submitted, Counsel, [email protected]; Amanda Ledig, holding company, savings and loan unless modified for technical reasons or Attorney, [email protected]; Supervision holding company, or federally insured to remove sensitive personally and Legislation Branch, Legal Division, credit union (collectively, eligible identifiable information at the Federal Deposit Insurance Corporation, banking organizations). commenter’s request. Public comments 550 17th Street NW, Washington, DC Under ECIP, Treasury can acquire may also be viewed electronically or in 20429.
Load more

Recommended publications
  • Observations on Regulation D and the Use of Reserve Requirements
    United States Government Accountability Office Report to Congressional Requesters October 2016 FEDERAL RESERVE Observations on Regulation D and the Use of Reserve Requirements GAO-17-117 October 2016 FEDERAL RESERVE Observations on Regulation D and the Use of Reserve Requirements Highlights of GAO-17-117, a report to congressional requesters Why GAO Did This Study What GAO Found Section 19 of the Federal Reserve Act The methods by which depository institutions can implement Regulation D requires depository institutions to (Reserve Requirements of Depository Institutions) include maintaining reserves maintain reserves against a portion of against transaction accounts and enforcing a numeric transfer and withdrawal their transaction accounts solely for the (transaction) limit for savings deposits if they wish to avoid classifying those implementation of monetary policy. accounts as reservable transaction accounts. GAO estimates that 70–78 percent Regulation D implements section 19, of depository institutions limit savings deposit transactions. Other methods and it also requires institutions to limit include automatically transferring balances from transaction (e.g., checking) certain kinds of transfers and accounts to savings deposits in order to reduce reserve requirements. Institutions withdrawals from savings deposits to may choose to maintain transaction account reserves against savings deposits to not more than six per month or eliminate the need to enforce the transaction limit. But some institutions GAO statement cycle if they wish to avoid having to maintain reserves against surveyed indicated that they had operational burdens associated with monitoring these accounts. The transaction limit and enforcing the transaction limit (for example, 63–73 percent cited challenges, allows the Federal Reserve to such as creating forms and converting and closing accounts).
    [Show full text]
  • Understanding the Effects of the Repeal of Regulation Q on Financial Institutions and Small Businesses
    UNDERSTANDING THE EFFECTS OF THE REPEAL OF REGULATION Q ON FINANCIAL INSTITUTIONS AND SMALL BUSINESSES HEARING BEFORE THE SUBCOMMITTEE ON FINANCIAL INSTITUTIONS AND CONSUMER CREDIT OF THE COMMITTEE ON FINANCIAL SERVICES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS SECOND SESSION MARCH 1, 2012 Printed for the use of the Committee on Financial Services Serial No. 112–104 ( U.S. GOVERNMENT PRINTING OFFICE 75–076 PDF WASHINGTON : 2012 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 18:21 Aug 03, 2012 Jkt 075076 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 K:\DOCS\75076.TXT TERRIE HOUSE COMMITTEE ON FINANCIAL SERVICES SPENCER BACHUS, Alabama, Chairman JEB HENSARLING, Texas, Vice Chairman BARNEY FRANK, Massachusetts, Ranking PETER T. KING, New York Member EDWARD R. ROYCE, California MAXINE WATERS, California FRANK D. LUCAS, Oklahoma CAROLYN B. MALONEY, New York RON PAUL, Texas LUIS V. GUTIERREZ, Illinois DONALD A. MANZULLO, Illinois NYDIA M. VELA´ ZQUEZ, New York WALTER B. JONES, North Carolina MELVIN L. WATT, North Carolina JUDY BIGGERT, Illinois GARY L. ACKERMAN, New York GARY G. MILLER, California BRAD SHERMAN, California SHELLEY MOORE CAPITO, West Virginia GREGORY W. MEEKS, New York SCOTT GARRETT, New Jersey MICHAEL E. CAPUANO, Massachusetts RANDY NEUGEBAUER, Texas RUBE´ N HINOJOSA, Texas PATRICK T. MCHENRY, North Carolina WM. LACY CLAY, Missouri JOHN CAMPBELL, California CAROLYN MCCARTHY, New York MICHELE BACHMANN, Minnesota JOE BACA, California THADDEUS G.
    [Show full text]
  • ATA TIME When Market Interest Rates Have Soared These Ceilings Were Adopted January 21, 1970
    The Administration of Regulation Q * by CHARLOTTE E. RUEBLING ATA TIME when market interest rates have soared These ceilings were adopted January 21, 1970. Dur- to levels never before reached in this country, rates ing 1969 the ceilings were lower, \vith yields on small on deposits at banks and other financial institutions time deposits limited to 5 per cent or less, a rate which have been held much lower, The rate commercial didnot compensate savers for the 6 per cent decline in banks charge on prime business loans has been 8½ the purchasing po\ver of their funds. per cent since early last June. Mortgage and many Interest rate ceilings on deposits at banks which other market interest rates are currently about as high. are members of the Federal Reserve System are es- On the other hand, payment of interest is pro- tablished under Federal Reserve Regulation Q. Ceil- hibited on demand deposits, and the maximum rates ings at insured nonmember banks, which have been permitted on time and savings deposits vary between 1 the same as for mernher banks, are set by a regula- 4.50 and 7.50 per cent. The highest rate applies only tion of the Federal Deposit Insurance Corporation.2 to deposits in denominations of $100,000 or more These Regulations stem from Banking Acts of 1933 maturing in a year or longer. Smaller time and sav- and 1935, respectively.3 Some states have at times im- ings deposits are permitted to yield 4.50 to 5.75 per posed ceilings for state-chartered banks which are cent (see table below).
    [Show full text]
  • "A Legal History of Federal Regulation of Payments of Interest Or Deposits
    A ci LEGAL HISTORY OF THE FEDERAL RESERVE SYSTEM General statement of purpose and plan, l»#«f to review discuss the la gal aspects of the origin and developiaent, both fimetloaallgr «ad atruetwatllyi of System including refMrtnofis to oourt of the AttoMt^y Q*n*raljt ^^^ regulatioaa^ rulings, intaiTpretatic^ia of tfet Boards with refer^nets to political and economic aspects limited to a minimum. A* Background diacmstioti of first and Bm®m& banks of th# United States> National Bank kct, and possibly ®m® reference to foreign central banks* General indication of defects of the banking system before the Federal Reserve Act, i.e.> ismiastle mtrrnmy} laote of r©s#rroir of r#0arw®t etc* B* Early Psroposals studies of National Monetary Cormnission and Pujo Coiroittee, with some discussion of pioposals of Aldbplohf Willis, Waxfeurg* C» I^gislati1^ Blstoxy Diaoission of wijor points of eontroirwsyj dtbatas C reports of c^i»dtt0#sf etc. D# fhm Origiiial Act Osi^ral amimary of pswisions B« Iiagal Basis —some disc- sslon of court decisions m to constitutionality of F©d@ral regal/itlon of banking # 11. A* Central Ctatlint itatt^iut of priBeipal changti in ttit Sjrstfn both functional and structural} shifts in eicphasis, etc* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1# fhe Cwreiicy Funotion 1* Federal Reserve notes status (b) froosdwt for issuance (c) (k&lateral requirements shift 1» saphasls {#) Redemption (f) Interest *—hoif ttoiy have bt#n n»M in llea of fr&n&faise tsx 2t fisdersl Reserve Mmk not#§ (m) 1913 provisions (b) 1933 iwrgeney pi^viadons 3* Thomas Amendment -"•legal tender* etc* h* §oM Reserve let -*- effect on Federal Easerro Boak# and the Discounting Ftuaetion 1* Original eow^pt 2* Qeneral nmWm «-dncluding dlscsretlonarj natiare 3» Sllglbllltgr r#quir«itntt U« Bankers9 acetptmnets ««thelr purpose and.
    [Show full text]
  • National Federation of Independent Business, David S. Addington
    ~NFIB. 555 12th St. NW, Ste. 1001 Washington, D.C. 20004 Via www.regulations.gov, [email protected], [email protected], and via U.S. First Class Mail March 20, 2021 Hon. Janet L. Yellen Hon. Jerome H. Powell Hon. Jelena McWilliams Secretary of the Treasury Chairman Chairman, FDIC c/o Chief Counsel's Office c/o Ann E. Misback, Sec'y c/o James P. Sheesley OCC Comment Processing Board of Governors of the Asst. Executive Sec'y 400 7th St. SW, 3E-218 Federal Reserve System Attn: RIN 3064-AF73 Washington, DC 20219 20th & Constitution NW 550 17th St. NW Washington, DC 20551 Washington, DC 20429 Dear Madam Secretary, Mr. Chairman, and Madam Chairman: RE: Notice Titled "Amendment to the Capital Rule to Facilitate the Emergency Capital Investment Program," Dkt. ID OCC-2021-0002, Regulation Q/Dkt. No. R-1741/ RIN 7100-AG11, and RIN 3064-AF73, 86 Fed. Reg. 15076 (March 22, 2021) This letter presents comments of the National Federation of Independent Business (NFIB)1 on the Office of the Comptroller of the Currency of the U.S. Department of the Treasury (OCC), Board of Governors of the Federal Reserve System (Board), and Federal Deposit Insurance Corporation (FDIC) interim final rule titled "Amendment to the Capital Rule to Facilitate the Emergency Capital Investment Program" and published in the Federal Register of March 22, 2021 . The interim final rule implements a statutory authorization for an Emergency Capital Investment Program (ECIP) in which the Treasury invests in financial institutions in low-income or moderate-income communities.2 NFIB does not object to what OCC, the Board, and the FDIC did in the interim final rule; NFIB objects to how you did it.
    [Show full text]
  • FEDERAL RESERVE SYSTEM 12 CFR Part 217 Regulation Q Docket
    FEDERAL RESERVE SYSTEM 12 CFR Part 217 Regulation Q Docket No. R-1506 RIN 7100–AE 27 Regulatory Capital Rules: Regulatory Capital, Final Rule Demonstrating Application of Common Equity Tier 1 Capital Eligibility Criteria and Excluding Certain Holding Companies from Regulation Q AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule. SUMMARY: The Board of Governors of the Federal Reserve System (Board) is adopting amendments to the Board’s regulatory capital framework (Regulation Q) to clarify how the definition of common equity tier 1 capital, a key capital component, applies to ownership interests issued by depository institution holding companies that are structured as partnerships or limited liability companies. In addition, the final rule amends Regulation Q to exclude temporarily from Regulation Q savings and loan holding companies that are trusts and depository institution holding companies that are employee stock ownership plans. DATES: The final rule is effective January 1, 2016. Any company subject to the final rule may elect to adopt it before this date. FOR FURTHER INFORMATION CONTACT: Juan Climent, Manager, (202) 872-7526, Page Conkling, Senior Supervisory Financial Analyst, (202) 912-4647, Noah Cuttler, Senior Financial Analyst, (202) 912-4678, Division of Banking Supervision and Regulation, Board of Governors of the Federal Reserve System; or Benjamin McDonough, Special Counsel, (202) 452-2036, or Mark Buresh, Senior Attorney, (202) 452-5270, Legal Division, 20th Street and Constitution Avenue NW., Washington, DC 20551. Users of Telecommunication Device for Deaf (TDD) only, call (202) 263-4869. SUPPLEMENTARY INFORMATION: I. Background In July 2013, the Board adopted Regulation Q, a revised capital framework that strengthened the capital requirements applicable to state member banks and bank holding companies (BHCs) and implemented capital requirements for certain savings and loan holding companies (SLHCs).1 Among other changes, Regulation Q introduced a common equity tier 1 capital (CET1) requirement.
    [Show full text]
  • Federal Reserve Bank of Richmond Annual Report
    Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis C C r M ID A I D C C C D \ /C D A KHZ' r^C. D \i^LJ k A f~\k ir\ y i— I Nix i i\i^i i/viwi nl/ 59 th ANNUAL REPORT 1973 CONTENTS 4 RECENT TRENDS IN BANKING 31 HIGHLIGHTS 35 Summary of Operation 36 COMPARATIVE STATEMENT 36 Condition 37 Earnings and Expenses 38 DIRECTORS 39 OFFICERS 40 BRANCH DIRECTORS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TO OUR MEMBER BANKS: We are pleased to present the 1973 Annual Report of the Federal Reserve Bank of Richmond. The report’s feature article reviews recent trends in commercial banking-. The report also includes highlights of the year’s operations, comparative financial statements, and current lists of officers and directors of our Richmond, Baltimore, Charlotte, Columbia and Culpeper offices. On behalf of our directors and staff, we wish to thank you for the cooperation and support you have extended to us throughout the past year. Sincerely yours, Chairman of the Board President Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis REGENT TRENDS IN BANKING The history of banking in the United States has been one of almost constant change, from the days of “wildcat” banking in the early and mid-nineteenth century (when some state constitutions prohibited bank­ ing), through the establishment of the National Banking System during the Civil War, the financial panics of the late nineteenth and early twentieth centuries, the creation of the Federal Reserve System, and the collapse of the banking system in the 1930’s.
    [Show full text]
  • Requiem for Regulation Q: What It Did and Why It Passed Away
    Requiem for Regulation Q: What It Did and Why It Passed Away 11. Alton Gilbert ARCh 1986 markcd thc cud of the phas out of interest rate ceilings on deposits, otherwise known as Regulation Q The handwriting on the wall became evident for Regulation 0, when the Monetary Contn’oi Act (MUA) of 1980 established the Depository Institu- C ‘~ -\ // — tions Den’egulation Committee ID DC), whose main duty was to phase out the regulation over a period of /1T~/ six year’s. ‘i’he Banking Acts of 1933 and 1935 prohibited the The purpose of this article is to review léderal policy paynnent of interest on demand deposits and autho- on deposit interest rate ceilings over the 53 year’s since rized the Fedentl Reserve to set intem’est t’ate ceilings they first were imposed. The article describes the on time and savings deposits paid by commercial objectives of Congress in establishing ceiling rates on banks. One important congn’essional mibjective was to deposits, examines their effects on the I’mnancial sys- encourage country banks to lend more in their local communities rather than hold balances with lar-ger tem and economic activity, and, finally, assesses the effect that phasing them out has had ~n tile coniposi- banks in financial centers. Cm’itics of banking practices tion of deposit liabilities. charged that the lan’ge banks in fimiancial center’s used these funds for speculative purposes, thus depriving This analysis focuses on three distinct periods dirt’- businesses and individuals in smaller communities of ing which Regulation 0, was administer-ed under dif- credit that could have been used productively.’ ferent objectives.
    [Show full text]
  • Depository Services
    CCE-DEP Comptroller of the Currency Administrator of National Banks Depository Services Comptroller’s Handbook August 2010 CCE Consumer Compliance Examination Depository Services Table of Contents Introduction ............................................................................................... 1 Reserve Requirements of Depository Institutions ........................................ 2 Background and Summary ................................................................ 2 Affected Institutions .......................................................................... 2 Computation of Reserves .................................................................. 3 Exemption From Reserve Requirements ............................................ 3 Regulation D Deposit Requirements ................................................. 5 Federal Reserve Board Staff Opinions and Rulings: Regulation D ...... 6 Savings Deposits .............................................................................. 9 Time Deposits ................................................................................ 24 Transaction Accounts ..................................................................... 29 References ..................................................................................... 40 Interest on Deposits ................................................................................. 42 Background and Summary .............................................................. 42 Federal Reserve Board Staff Opinions Interpreting Regulation
    [Show full text]
  • Federal Reserve Adopts New Bailout Rule
    2016-2017 DEVELOPMENTS IN BANKING LAW 531 VIII. Federal Reserve Adopts New Bailout Rule In an effort to improve “the resiliency and resolvability” of large banking organizations, the Federal Reserve Board (Board) has adopted a new bailout-prevention rule (Rule) as the latest installment to its series of post-financial crisis regulations.861 Enacted on December 15, 2016, the Rule imposes several new capital and long-term debt standards on U.S. global systemically important bank holding companies (covered BHCs) and certain U.S. intermediate holding companies of foreign global systematically important intermediate holding companies (covered IHCs).862 Most of the Rule’s meaningful changes are effective on January 1, 2019 with a transition period extending to January of 2022.863 The crux of the Rule surrounds primarily three new obligations: (1) a total loss-absorbing capacity (TLAC) standard, (2) a supplemental long-term debt (LTD) requirement, and (3) additional “clean holding company” standards.864 The TLAC standard is a combination of capital and LTD requirements designed to equip banks with their own means to navigate 861 See Total Loss-Absorbing Capacity, Long-Term Debt, and Clean Holding Requirements for Systemically Important U.S. Bank Holding Companies and Intermediate Holding Companies of Systemically Important Foreign Bank- ing Organizations, 82 Fed. Reg. 8266 (Jan. 24, 2017) (to be codified at 12 C.F.R. pt. 252), https://www.gpo.gov/fdsys/pkg/FR-2017-01-24/pdf/2017- 00431.pdf [https://perma.cc/UJ9Q-DWXN] [hereinafter Bailout Rule]. 862 See Evan Weinberger, Fed Rule Aims to Make Investors Pay for Big Bank Failure, LAW360 (Dec.
    [Show full text]
  • Fed Policy, Pushing on a String? Article
    Article SNL Blogs Tuesday, November 26, 2013 8:41 AM CT Fed policy, pushing on a string? By Jeff K. Davis Jeff Davis, CFA, is a veteran bank analyst and SNL contributor. The views and opinions expressed in this piece are those of the author and do not necessarily represent the views of SNL or Mercer Capital, where he is the managing director of the financial institutions group. Confirmation hearings for Janet Yellen to chair the Federal Reserve Board were uneventful on Nov. 14. There were no savers in the gallery with pitchforks and torches. Senators were not especially aggressive in their questioning, which is not surprising because human nature is to back off when the subject matter is not a familiar one. Yellen commented that unemployment is too high and inflation is running below the Fed's 2% goal. One might interpret that to mean not much change should be expected in monetary policy until the economy gains more traction. Commentary from Wall Street banks in recent weeks is pointing to a Fed that will deemphasize asset purchases and emphasize forward guidance that short rates will remain anchored near zero for much longer than the 2015-2016 consensus assumes. If the Fed is getting uncomfortable with the size of its balance sheet, Yellen did not say so, beyond acknowledging that there are pros and cons of continuing the current policy of asset purchases. I do not see how the Fed keeping short-term rates tethered to zero for many years should be a surprise: Government finances, asset values, housing, autos and tepid economic momentum are dependent upon very low rates.
    [Show full text]
  • Regulation Q Repeal the Impact on Small Business and Community Banking
    Regulation Q Repeal The Impact on Small Business and Community Banking The longstanding prohibition on paying interest on commercial checking accounts was reversed in a "repealer" in H.R. 4173, The Wall Street Reform and Consumer Protection Act of 2009 (Dodd-Frank Act). We believe this particular "stroke of the pen" will have significant detrimental impacts on community banks as well as the small business customers they have historically served. Please consider the following observations and concerns: • Demand deposits are among the most relational deposit products we have. •Since no interest is paid on them, they are competed for where relationship, service and credit support are the keys. •Many banks that have not succeeded on a relationship level will see as a new funding source just like any other rate related product. • The demand deposit account (DDA) is the foundation of the Banker/Business relationship. •If relationships are disrupted due to seeking higher rates, the business may well lose a long standing ally in times of need. •Some have said this gives smaller banks the ability to compete with the large banks for these deposits, but surveys show that Community Banks mostly compete with each other. • If the rate for these deposits is set by the "Too Big To Fail" banks, it will simply drive up interest expense in Community Banks. • The "Too Big To Fail" banks no longer have the incentive of funding from alternative sources due to the change in the FDIC assessment base. •The "Too Big To Fail" banks will most likely turn to more stable and less costly DDA accounts to fund their balance sheets.
    [Show full text]