FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Ch. III

Semiannual Agenda of Regulations

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Semiannual regulatory agenda.

SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is hereby publishing items for the Fall 2014 Unified Agenda of Federal Regulatory and Deregulatory Actions. The agenda contains information about FDIC's current and projected rulemakings, existing regulations under review, and completed rulemakings.

FOR FURTHER INFORMATION CONTACT: Robert E. Feldman, Executive Secretary, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429.

SUPPLEMENTARY INFORMATION: Twice each year, the FDIC publishes an agenda of regulations to inform the public of its regulatory actions and to enhance public participation in the rulemaking process. Publication of the agenda is in accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The FDIC amends its regulations under the general rulemaking authority prescribed in section 9 of the Federal Deposit Insurance Act (12 U.S.C. 1819) and under specific authority granted by the Act and other statutes.

Proposed Rule Stage:

Loans in Areas Having Special Flood Hazards (3064-AE03)

The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation (FDIC), the Farm Credit Administration, and the National Credit Union Administration (collectively, the Agencies) are proposing to amend their regulations regarding loans in areas having special flood hazards to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. Specifically, the proposal establishes requirements with respect to the escrow of flood insurance payments, the acceptance of private flood insurance coverage, and the force-placement of flood insurance. The proposal also clarifies the Agencies' flood insurance regulations with respect to other amendments made by the Act and makes technical corrections. Furthermore, the OCC and the FDIC are proposing to integrate their flood insurance regulations for national banks and Federal savings associations and for State non-member banks, and State savings associations, respectively.

*Margin and Capital Requirements for Covered Swap Entities (3064-AE21)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Farm Credit Administration, and the Fair Housing Finance Agency (each an Agency and collectively the Agencies) are seeking comment on a proposed joint rule to establish minimum margin and capital requirements for registered swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants for which one of the Agencies is the prudential regulator. This proposed rule implements sections 731 and 764 of the Dodd-Frank Wall Street Reform and Consumer Protection Act which require the Agencies to adopt rules jointly to establish capital requirements and initial and variation margin requirements for such entities and their counterparties on all non-cleared swaps and non-cleared security-based swaps in order to offset the greater risk to such entities and the financial system arising from the use of swaps and security-based swaps that are not cleared.

*Removal of Transferred OTS Regulations Regarding Lending and Investment, and Amendments to Part 365 of FDIC's Rules and Regulations (3064-AE22)

In this notice of proposed rulemaking, the Federal Deposit Insurance Corporation (FDIC) proposes to rescind and remove from the Code of Federal Regulations 12 CFR part 390, subpart P, entitled Lending and Investment (part 390, subpart P). This subpart was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Upon removal of part 390, subpart P, all insured depository institutions for which the FDIC is the appropriate Federal banking agency will follow the safety and soundness standards contained in 12 CFR part 364 of the FDIC's Rules and Regulations and the real-estate lending standards found in 12 CFR part 365 of the FDIC's Rules.

*Transferred OTS Regulations Regarding Fiduciary Powers of State Savings Associations (3064-AE23)

The Federal Deposit Insurance Corporation (FDIC) proposes to rescind and remove from the Code of Federal Regulations 12 CFR part 390 subpart J, entitled Fiduciary Powers of State Savings Associations and all references thereto, and amend certain sections of 12 CFR parts 333 and 303 regarding consent to exercise trust powers to reflect their applicability to State savings associations. Part 390 subpart J was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Upon removal of part 390 subpart J from the FDIC rules and regulations and adopting of the amendment to parts 333 and 303 proposed herein, all State nonmember banks and State savings associations (collectively FDIC-supervised institutions) seeking consent to exercise trust powers not previously granted by its chartering authority will be required to comply with FDIC rules governing applications for consent to exercise trust powers.

*Filing and Processing Procedures for Changes in Control with Respect to State Nonmember Banks, State Savings Associations, and Certain Parent Companies Thereof (3064-AE24)

The Federal Deposit Insurance Corporation (FDIC) is proposing to amend its filing requirements and processing procedures for notices filed under the Change in Bank Control Act (Notices). First, the proposed rule would consolidate into one subpart the current requirements and procedures for Notices filed with respect to state nonmember banks and certain parent companies thereof and the requirements and procedures for Notices filed with respect to state savings associations. Second, the proposed rule would rescind the FDIC's separate regulation governing the requirements and procedures for Notices filed with respect to state savings associations and certain parent companies thereof. Third, the proposed rule would adopt certain provisions that will increase the consistency of its regulation with and adopt the best practices of the related regulations of the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System. Finally, the proposed rule would clarify the FDIC's requirements and procedures based on its experience interpreting and implementing the existing regulation. This proposed rule is also part of the FDIC's continuing review of its regulations under the Economic Growth and Regulatory Paperwork Reduction Act.

*Record Retention Requirements (3064-AE25)

The Federal Deposit Insurance Corporation (FDIC) is proposing a rule with request for comments that would implement section 210(a)(16)(D) (12 U.S.C. 5390(a)(16)(D)) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). This statutory provision requires the promulgation of a regulation establishing schedules for the retention by the FDIC of the records of a covered financial company, i.e. a financial company for which the FDIC has been appointed receiver pursuant to title II of the Dodd-Frank Act, as well as the records generated and maintained by the FDIC in the exercise of its title II orderly liquidation authority with respect to such covered financial company.

*Restrictions on Sales of Assets of a Failed Institution by the Federal Deposit Insurance Corporation (3064-AE26)

The Federal Deposit Insurance Corporation (FDIC) is proposing to amend 12 CFR part 340. Part 340 implements section 1821(p) of the Federal Deposit Insurance Act. Under section 1821(p), individuals or entities whose acts or omissions have or may have contributed to the failure of an insured depository institution, cannot buy the assets of a failed insured depository institution from the FDIC. The proposed revisions to part 340 will help to clarify its purpose scope and applicability and will make it more consistent with 12 CFR section 380.13, the parallel provision in the FDIC's Orderly Liquidation Authority regulations that implements section 210(r) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, by placing restrictions on sales of assets of a covered financial company by the FDIC. Section 380.13 became effective on July 1 2014.

Final Rule Stage:

Credit Risk Retention (3064-AD74)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Securities Exchange Commission, the Federal Housing Finance Agency and the U.S. Department of Housing and Urban Development (the Agencies) sought comment on a joint proposed rule to revise the proposed rule the Agencies published in the Federal Register on April 29, 2011, and to implement the credit risk retention requirements of section 15G of the Securities Exchange Act of 1934 (15 U.S.C. 78o-11), as added by section 941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 15G generally requires the securitizer of asset-backed securities to retain not less than 5 percent of the credit risk of the assets collateralizing the asset-backed securities. Section 15G includes a variety of exemptions from these requirements, including an exemption for asset-backed securities that are collateralized exclusively by residential mortgages that qualify as "qualified residential mortgages," as such term is defined by the Agencies by rule.

Incentive-Based Compensation Arrangements (3064-AD86)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the U.S. Securities Exchange Commission, and the Fair Housing Finance Agency are adopting a rule to implement section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule would require the reporting of incentive-based compensation arrangements by a covered financial institution and prohibit incentive-based compensation arrangements at a covered financial institution that provide excessive compensation or that could expose the institution to inappropriate risks that could lead to material financial loss.

Removal of Transferred OTS Regulations Regarding Rules of Practice and Procedure (3064-AE08)

The Federal Deposit Insurance Corporation (FDIC) is rescinding and removing 12 CFR part 390, subparts B, C, D, and E of the former Office of Thrift Supervision (OTS) rules as redundant of existing uniform rules of practice and procedure applicable to administrative hearings. These subparts were included in the regulations that were transferred to the FDIC from the OTS on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. With few exceptions, the requirements for State savings associations in part 390, subparts B through E are substantively similar to those in FDIC's 12 CFR part 308, subparts A, B, C, K, and N. The FDIC is further amending 12 CFR part 308, subparts A, B, C, K, and N, to modify the scope of the rules to include State savings associations and to conform to and reflect the scope of the FDIC's current supervisory responsibilities as the appropriate Federal banking agency for those institutions. Additionally, the FDIC is modifying these regulations in minor ways that will ensure that all insured depository institutions, for which the FDIC is the appropriate Federal Banking Agency, are subject to the same substantive and procedural rules governing administrative hearings.

Minimum Requirements for Appraisal Management Companies (3064-AE10)

The Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Association, and the Federal Housing Finance Agency (collectively the Agencies) will be adopting a rule to implement the minimum requirements in section 1473 of the Dodd-Frank Wall Street Reform and Consumer Protection Act to be applied by States in the registration and supervision of appraisal management companies (AMCs). The rule also implements the requirement in section 1473 of the Dodd-Frank Act for States to report to the Appraisal Subcommittee of the Federal Financial Institutions Examination Council the information required by the Appraisal Subcommittee to administer the new national registry of appraisal management companies. In conjunction with this implementation of section 1473, the FDIC is proposing to integrate its appraisal regulations for State nonmember banks and State savings associations.

*Regulatory Capital Rules: Regulatory Capital, Proposed Revisions to the Supplementary Leverage Ratio (3064-AE12)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively the Agencies) will be adopting a rule that would revise the denominator of the supplementary leverage ratio the Agencies adopted in July 2013, as part of comprehensive revisions to the Agencies' regulatory capital rules.

Long-Term Actions:

Removal of Transferred OTS Regulations Regarding Prompt Corrective Action and Modifications to Existing Federal Deposit Insurance Regulations (3064-AE02)

The Federal Deposit Insurance Corporation (FDIC) will be proposing to rescind and remove from the Code of Federal Regulations 12 CFR part 390, subpart Y, entitled Prompt Corrective Action (PCA). This subpart was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Upon removal of 12 CFR part 390, subpart Y, the PCA regulations applicable for all insured depository institutions for which the FDIC has been designated the appropriate Federal banking agency will be found at 12 CFR part 325, subpart B, entitled Prompt Corrective Action, 12 CFR 325.2, entitled Definitions, and 12 CFR part 308, subpart Q, entitled Issuance and Review of Orders Pursuant to the Prompt Corrective Action Provisions of the Federal Deposit Insurance Act Rules (FDIC PCA Rules). The proposed rule also amends the FDIC PCA rules to ensure applicability to all insured depository institutions for which the FDIC has been designated the appropriate Federal banking agency.

Treatment of Certain Collateralized Debt Obligations Backed Primarily by Trust Preferred Securities; Prohibitions and Restrictions on Certain Interests in, Hedge Funds and Private Equity Funds (3064-AE11)

The Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the U.S. Commodity Futures Trading Commission, and the Securities Exchange Commission (individually, an "Agency," and collectively, the "Agencies") will be adopting an interim final rule that would permit banking entities to retain investments in certain pooled investment vehicles that invested their offering proceeds primarily in trust preferred or subordinated debt securities issued by community banking organizations of the type grandfathered under section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The interim final rule is a companion rule to the final rules adopted by the Agencies to implement section 13 of the Bank Holding Company Act of 1956, which was added by section 619 of the Dodd-Frank Act.

Completed Actions:

Margin and Capital Requirements for Covered Swap Entities (3064-AD79)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Farm Credit Administration, and the Federal Housing Finance Agency (collectively the Agencies), reopened the comment period on the proposed rule published in the Federal Register on May 11, 2011 (76 FR 27564) to establish minimum margin and capital requirements for uncleared swaps and security-based swaps entered into by swap dealers, major swap participants, security based swap dealers, and major security-based swap participants, for which one of the Agencies is the prudential regulator (Proposed Margin Rule). Reopening the comment period allowed interested persons additional time to analyze and comment on the Proposed Margin Rule in light of the consultative document on margin requirements for non-centrally-cleared derivatives recently published for comment by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions. This RIN has been withdrawn and replaced with RIN 3064-AE21.

Transferred OTS Regulations and FDIC Regulations Regarding Post-Employment Activities of Senior Examiners (3064-AD98)

The Federal Deposit Insurance Corporation (FDIC) is adopting a final rule to rescind and remove regulations transferred to the FDIC following dissolution of the former Office of Thrift Supervision (OTS) in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Section 316(b)(3) of the Dodd-Frank Act provided that the former OTS rules that were transferred to the FDIC would be enforceable by or against the FDIC until they were modified, terminated, set aside, or superseded in accordance with applicable law by the FDIC, by any court of competent jurisdiction, or by operation of law.

Liquidity Coverage Ratio: Liquidity Risk Measurement, Standards, and Monitoring (3064-AE04)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System ("Board"), and the Federal Deposit Insurance Corporation (collectively the "Agencies") are adopting a final rule that implements a quantitative liquidity requirement consistent with the liquidity coverage ratio standard established by the Basel Committee on Banking Supervision. The requirement is designed to promote the short-term resilience of the liquidity risk profile of large and internationally active banking organizations thereby improving the banking sectors ability to absorb shocks arising from financial and economic stress and to further improve the measurement and management of liquidity risk. The final rule establishes a quantitative minimum liquidity coverage ratio that requires a company subject to the rule to maintain an amount of high-quality liquid assets (the numerator of the ratio) that is no less than 100 percent of its total net cash outflows over a prospective 30 calendar-day period (the denominator of the ratio). The final rule applies to large and internationally active banking organizations, generally bank holding companies, certain savings and loan holding companies, and depository institutions with $250 billion or more in total assets or $10 billion or more in on-balance sheet foreign exposure and to their consolidated subsidiaries that are depository institutions with $10 billion or more in total consolidated assets. The final rule focuses on these financial institutions because of their complexity funding profiles and potential risk to the financial system. Therefore, the Agencies do not intend to apply the final rule to community banks. In addition the Board is separately adopting a modified minimum liquidity coverage ratio requirement for bank holding companies and savings and loan holding companies without significant insurance or commercial operations that in each case have $50 billion or more in total consolidated assets but that are not internationally active. The final rule is effective January 1, 2015 with transition periods for compliance with the requirements of the rule.

Removal of Transferred OTS Regulations Regarding Securities of State Savings Associations (3064-AE07)

The Federal Deposit Insurance Corporation (FDIC) is rescinding and removing from the Code of Federal Regulations 12 CFR part 390, subpart U, entitled Securities of State Savings Associations, and revising 12 CFR part 335 to extend its applicability to state savings Associations. This subpart was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Upon removal of 12 CFR part 390, subpart U and all related references from the FDIC rules and regulations, all State nonmember banks and State savings associations having securities registered pursuant to the Securities Exchange Act of 1934 (Exchange Act) and for which the FDIC has been designated the appropriate Federal banking agency, will be subject to the disclosure and filing requirements found at 12 CFR part 335, currently entitled Securities of Nonmember Insured Banks. The rule would retitle part 335 as Securities of Insured State Nonmember Banks and State Savings Associations and revise part 335 by inserting the term "State savings association" where appropriate so that the FDIC rules governing the disclosure and filing requirements of securities registered pursuant to the Exchange Act will apply to both insured State nonmember banks and State savings associations. Finally, the rule makes minor technical amendments to part 335 by deleting all references to the "Division of Supervision and Consumer Protection (DSC)" and adding the words "Division of Risk Management Supervision (RMS)" to reflect an internal FDIC reorganization.

Transferred OTS Regulations and FDIC Regulations Regarding Disclosure and Reporting of CRA-Related Agreements (3064-AE09)

The Federal Deposit Insurance Corporation (FDIC) is adopting a final rule to rescind and remove certain regulations transferred to the FDIC from the Office of Thrift Supervision (OTS) on July 21, 2011, in connection with the implementation of applicable provisions of Title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Dodd-Frank Act provided that the former OTS rules that were transferred to the FDIC would be enforceable by or against the FDIC until they were modified, terminated, set aside, or superseded in accordance with applicable law by the FDIC, by any court of competent jurisdiction, or by operation of law. The requirements for State savings associations are substantively similar to existing FDIC regulations.

Regulatory Capital Rules: Advanced Approaches Risk-Based Capital Rule, Proposed Revisions to the Definition of Eligible Guarantee (3064-AE13)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the Agencies) are adopting a final rule that revises the definition of eligible guarantee in the Agencies' advanced approaches risk-based capital rule, adopted in the Agencies' July 2013, regulatory capital rule. The final rule removes the requirement that an eligible guarantee be made by an eligible guarantor for purposes of calculating the risk weighted assets of an exposure (other than a securitization exposure) under the advanced approaches risk-based capital rule as incorporated into the 2013 capital rule (advanced approaches). The change to the definition of eligible guarantee applies to all banks, savings associations, bank holding companies, and savings and loan holding companies that are subject to the advanced approaches.

*Assessments (3064-AE16)

The Federal Deposit Insurance Corporation (FDIC) has proposed: to revise the ratios and ratio thresholds for capital evaluations used in its risk-based deposit insurance assessment system to conform to the prompt corrective action capital ratios and ratio thresholds adopted by the FDIC, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency; to revise the assessment base calculation for custodial banks to conform to the asset risk weights adopted by the FDIC, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency; and to require all highly complex institutions to measure counterparty exposure for deposit insurance assessment purposes using the Basel III standardized approach credit equivalent amount for derivatives and the Basel III standardized approach exposure amount for other securities financing transactions such as repo-style transactions, margin loans, and similar transactions as adopted by the Federal banking agencies. These changes are intended to accommodate recent changes to the Federal banking agencies' capital rules that are referenced in portions of the assessments regulation.

*Transferred OTS Regulations Regarding Possession by Conservators and Receivers for Federal and State Savings Associations (3064-AE17)

The Federal Deposit Insurance Corporation (FDIC) has proposed to rescind and remove regulations regarding possession by conservators and receivers for federal and state savings associations, which are no longer necessary in light of or contradict provisions of the Federal Deposit Insurance Act and are not in accordance with FDIC practice and procedures. The regulations were included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

*Annual Stress Test (3064-AE18)

The Federal Deposit Insurance Corporation (the Corporation or FDIC) is revising the FDIC Rules and Regulations regarding the annual stress testing requirements for state non-member banks and state savings associations with total consolidated assets of more than $10 billion (covered banks). Our regulations which implement section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires covered banks to conduct annual stress tests and report the results of such stress test to the Corporation and the Board of Governors of the Federal Reserve System and publicly disclose a summary of the results of the required stress tests. The FDIC is modifying the ''as-of'' dates for financial data (that covered banks will use to perform their stress tests) as well as the reporting dates and public disclosure dates of the annual stress tests for both $10 billion to $50 billion covered banks and $50 billion covered banks. The revisions would become effective January 1, 2016.

*Transferred OTS Regulations Regarding Electronic Operations (3064-AE19)

The Federal Deposit Insurance Corporation (FDIC) is rescinding and removing the regulations regarding electronic operations which were transferred to the FDIC from the Office of Thrift Supervision (OTS) on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). There is no corresponding FDIC Electronic Operations rule, and the rule is deemed obsolete and unnecessary. Therefore, the FDIC is rescinding and removing the regulations.

*Transferred OTS Regulations and FDIC Regulations Regarding Management Official Interlocks (3064-AE20)

The Federal Deposit Insurance Corporation (FDIC) will be rescinding and removing parts of our regulations, entitled "Management Official Interlocks'' relating to State savings associations. This subpart was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision (OTS) on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The requirements for State savings associations in the transferred OTS regulations are substantively similar to those in the FDIC's regulations, which is also entitled ''Management Official Interlocks'' and is applicable for all insured depository institutions (IDIs) for which the FDIC has been designated the appropriate Federal banking agency. Upon removal of the transferred OTS regulations applicable for all IDIs for which the FDIC has been designated the appropriate Federal banking agency will be found in our regulations.

Federal Deposit Insurance Corporation.

NAME: Valerie J. Best,

Assistant Executive Secretary.