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 2015 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:

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 Federal Housing Finance Agency are proposing 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 Lending and Investment, and Amendments to Part 365 of FDIC's Rules and Regulations (3064-AE22)

In this 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.

*Large Bank Deposit Insurance Determination Modernization (3064-AD33)

The FDIC is seeking comment on whether certain insured depository institutions that have a large number of deposit accounts, such as more than two million accounts, should be required to undertake actions to ensure that, if one of these banks were to fail, depositors would have access to their FDIC-insured funds in a timely manner (usually within one business day of failure). Specifically, the FDIC is seeking comment on whether these banks should be required to: (1) Enhance their recordkeeping to maintain (and be able to provide the FDIC) substantially more accurate and complete data on each depositor's ownership interest by right and capacity (such as single or joint ownership) for all or a large subset of the bank's deposit accounts; and (2) develop and maintain the capability to calculate the insured and uninsured amounts for each depositor by deposit insurance capacity for all or a substantial subset of deposit accounts at the end of any business day. The ANPRM did not contemplate imposing these requirements on community banks.

*Temporary Liquidity Guarantee Program (3064-AE34)

The FDIC is rescinding and removing its regulations implementing the Temporary Liquidity Guarantee Program, codified at 12 CFR part 370, and the unlimited deposit insurance coverage for noninterest-bearing transaction accounts provided by section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, codified at 12 CFR 330.16, and related definitions. These programs have expired by their terms and the regulations implementing them are unnecessary and obsolete.

*Alternatives to Credit Ratings With Respect to Permissible Activities for Foreign Branches of Insured State Nonmember Banks and Pledge of Assets by Insured Domestic Branches of Foreign Banks (3064-AE36)

The FDIC is seeking public comment on a proposed rule to amend its international banking regulations in accordance with the requirements of section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which instructs each Federal agency to review and modify regulations that reference credit ratings. The proposed rule would amend 12 CFR part 347, subparts A and B (Subpart A and Subpart B, respectively), of the FDIC's regulations on International Banking. Subpart A would be amended to replace references to credit ratings with alternative standards of creditworthiness. Subpart B would revise the FDIC's asset pledge requirement for insured U.S. branches of foreign banks to eliminate three categories of assets that are currently eligible for pledging purposes because such categories reference credit ratings.

*Notice of Proposed Rulemaking to Revise Section 360.6 Relating to the Treatment of Financial Assets Transferred in Connection With a Securitization or Participation (3064-AE38)

The FDIC is proposing a rule that would revise a provision of its Securitization Safe Harbor Rule, which relates to the treatment of financial assets transferred in connection with a securitization or participation, in order to clarify a requirement as to loss mitigation by servicers of residential mortgage loans.

Final Rule Stage:

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 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. 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.

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) sought 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 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.

Filing Requirements and Processing Procedures for Changes in Control With Respect to State Nonmember Banks and State Savings Associations (3064-AE24)

The FDIC is amending its filing requirements and processing procedures for notices filed under the Change in Bank Control Act (Notices). The amendments are intended to accomplish several objectives. First, the 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 and certain parent companies thereof. Second, the 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 and would rescind any guidance issued by the Office of Thrift Supervision relating to changes in control of State savings associations that is inconsistent with the rule. Third, the rule would 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 rule would clarify the FDIC's requirements and procedures based on its experience interpreting and implementing the existing regulation. This rule is also part of the FDIC's continuing review of its regulations under the Economic Growth and Regulatory Paperwork Reduction Act of 1996.

Record Retention Requirements (3064-AE25)

The Federal Deposit Insurance Corporation will be finalizing a rule 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.

Transferred OTS Regulations Regarding Safety and Soundness Guidelines and Compliance Procedures and Amendments (3064-AE28)

The FDIC will be rescinding and removing from the Code of Federal Regulations 12 CFR part 391, subpart B, entitled Safety and Soundness Guidelines and Compliance Procedures' and Appendix A and B to part 391, subpart B and supplement A to appendix B. With few exceptions, the requirements for State savings associations in part 391, subpart B, are substantively similar to those in the FDIC's 12 CFR part 308, subpart R, and in the FDIC's 12 CFR part 364. Upon the completion of these changes, the Standards for Safety and Soundness for all insured depository institutions for which the FDIC has been designated the appropriate Federal banking agency will be found at part 364 and the Submission and Review of Safety and Soundness Compliance Plans and Issuance of Orders to Correct Safety and Soundness Deficiencies for all insured depository institutions for which the FDIC has been designated the appropriate Federal banking agency will be found at part 308, subpart R.

Transfer and Removal of OTS and CFPB Regulations Regarding Fair Credit Reporting and Amendments and Amendment to the Creditor Definition in Identity Theft Red Flags Rule (3064-AE29)

In this rulemaking, the FDIC proposed to make several amendments to its regulations covering Fair Credit Reporting. First, the FDIC proposed to rescind and remove from the Code of Federal Regulations 12 CFR part 391, subpart C, entitled Fair Credit Reporting. This subpart was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision 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 part 391, subpart C are substantively similar to those in the FDIC's 12 CFR part 334, also entitled Fair Credit Reporting, and is applicable for all insured depository institutions (IDIs) for which the

FDIC has been designated the appropriate Federal banking agency.

The FDIC also proposed to modify the scope of 12 CFR 334.1(b), 334.90(a), and 334.91(a) to include State savings associations and their subsidiaries to conform to the scope of the FDIC's current supervisory responsibilities as the appropriate Federal banking agency. The FDIC also proposed to add new subsections to define State savings association as having the same meaning as in section 3(b)(3) of the Federal Deposit Insurance Act.

Second, the FDIC proposed to amend the definitional portion of its Identity Theft Red Flags regulations to be in conformance with the Red Flag Program Clarification Act of 2010.

Third, the FDIC proposed to rescind and remove from the Code of Federal Regulations those portions of the FDIC's Fair Credit Reporting regulations where the rule writing authority was provided to the Consumer Financial Protection Bureau in the Dodd-Frank Act. The FDIC will continue to examine for and enforce violations of these regulations for all IDIs for which the FDIC has been designated the appropriate Federal banking agency.

Regulatory Capital Rules, Liquidity Coverage Ratio: Proposed Revisions to the Definition of Qualifying Master Netting Agreement and Related Definitions (3064-AE30)

The FDIC is amending the definition of qualifying master netting agreement under the regulatory capital rules and the liquidity coverage ratio rule. The FDIC also proposed to amend the definitions of collateral agreement, eligible margin loan, and repo-style transaction under the regulatory capital rules. The amendments are designed to ensure that the regulatory capital and liquidity treatment of certain financial contracts generally would not be affected by implementation of special resolution regimes in foreign jurisdictions if such regimes are substantially similar to title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Federal Deposit Insurance Act in the United States, or by the International Swaps and Derivative Association Resolution Stay Protocol that provides for contractual submission to such regimes. In December 2014, the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System adopted a joint interim final rule that is related to this rule.

Treatment of Financial Assets Transferred in Connection With a Securitization or Participation (3064-AE32)

The FDIC is revising certain provisions of its Securitization Safe Harbor rule, which relates to the treatment of financial assets transferred in connection with a securitization or participation, in order to clarify the requirements of the Securitization Safe Harbor as to the retention of an economic interest in the credit risk of securitized financial assets upon and following the effective date of the credit risk retention regulations adopted under section 15G of the Securities Exchange Act.

*Nondiscrimination on the Basis of Disability (3064-AE35)

The FDIC is updating 12 CFR part 352, Nondiscrimination on the Basis of Disability, and 12 CFR part 361, Minority and Women Outreach Program Contracting, to reflect a name change from the Agency's Office of Diversity and Economic Opportunity (ODEO) to the Office of Minority and Women Inclusion (OMWI).

*Assessments (3064-AE37)

The FDIC is amending 12 CFR part 327 to refine the deposit insurance assessment system for small insured depository institutions that have been federally insured for at least 5 years (established small banks) by: revising the financial ratios method so that it would be based on a statistical model estimating the probability of failure over 3 years; updating the financial measures used in the financial ratios method consistent with the statistical model; and eliminating risk categories for established small banks and using the financial ratios method to determine assessment rates for all such banks (subject to minimum or maximum initial assessment rates based upon a bank's CAMELS composite rating). The FDIC does not propose changing the range of assessment rates that will apply once the Deposit Insurance Fund (DIF or fund) reserve ratio reaches 1.15 percent; thus, under the proposal, as under current regulations, the range of initial deposit insurance assessment rates will fall once the reserve ratio reaches 1.15 percent. The FDIC proposes that a final rule would go into effect the quarter after a final rule is adopted; by their terms, however, the proposed amendments would not become operative until the quarter after the DIF reserve ratio reaches 1.15 percent.

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.

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 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.

Completed Actions:

Minimum Requirements for Appraisal Management Companies (3064-AE10)

The OCC, Board, FDIC, NCUA, Bureau, and FHFA (collectively, the Agencies) are adopting a final rule to implement the minimum requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) to be applied by participating States in the registration and supervision of appraisal management companies (AMCs). The final rule also implements the minimum requirements in the Dodd-Frank Act for AMCs that are subsidiaries owned and controlled by an insured depository institution and regulated by a Federal financial institutions regulatory agency (Federally regulated AMCs). Under the final rule, these Federally regulated AMCs do not need to register with a State, but are subject to the same minimum requirements as State regulated AMCs. The final rule also implements the requirement for States to report to the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council (FFIEC) the information required by the ASC to administer the new national registry of AMCs (AMC National Registry). In conjunction with this implementation, the FDIC is integrating its appraisal regulations for State nonmember banks and State savings associations.

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

With this final rule, the Federal Deposit Insurance Corporation (FDIC) is revising its rule concerning restrictions on the sale of assets of a failed institution under the Federal Deposit Insurance Act in order to clarify the purpose, scope and applicability of that rule and to make that rule more consistent with the FDIC's rule concerning restrictions on the sale of assets of a covered financial company under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Loans in Areas Having Special Flood Hazards (3064-AE27)

The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, the Farm Credit Administration, and the National Credit Union Administration (collectively, the Agencies) are amending their regulations regarding loans in areas having special flood hazards to implement certain provisions of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA), which amends some of the changes to the Flood Disaster Protection Act of 1973 mandated by the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters). Specifically, the final rule requires the escrow of flood insurance payments on residential improved real estate securing a loan, consistent with the changes set forth in HFIAA. The final rule also incorporates an exemption in HFIAA for certain detached structures from the mandatory flood insurance purchase requirement. Furthermore, the final rule implements the provisions of Biggert-Waters related to the force placement of flood insurance. Finally, the final rule integrates the OCC's flood insurance regulations for national banks and Federal savings associations. The Agencies plan to address the private flood insurance provisions in Biggert-Waters in a separate rulemaking.

Regulatory Capital Rules: Regulatory Capital, Proposed Revisions Applicable to Banking Organizations Subject to the Advanced Approaches Risk-Based Capital Rule (3064-AE31)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are adopting a final rule to clarify, correct, and update aspects of the regulatory capital framework applicable to certain large, internationally active banking organizations. The revisions correct technical and typographical errors and clarify certain requirements of the advanced approaches risk-based capital rule based on observations made by the agencies during the parallel run review process of advanced approaches banking organizations. The corrections also enhance consistency of the agencies' advanced approaches risk based capital rule with relevant international standards. The agencies proposed these changes in a notice of proposed rulemaking that was published in the Federal Register on December 18, 2014. The agencies are now adopting the proposed rule as final with some additional clarifications and amendments.

Federal Deposit Insurance Corporation.

NAME: Valerie J. Best,

Assistant Executive Secretary.