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 Spring 2019 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.

Prerule Stage:

Brokered Deposits (3064-AE94)

The FDIC seeks comment on possible changes to the FDIC's rule on brokered deposits.

*Interest Rate Restrictions on Insured Depository Institutions That Are Not Well Capitalized (3064-AF02)

The FDIC intends to seek comment on proposed amendments to its regulations relating to the interest rate restrictions that apply to insured depository institutions that are not well capitalized. Comments received from the FDIC's ANPR on brokered deposits and the interest rate restrictions will inform this proposed rulemaking.

*Resolution Plans Required for Insured Depository Institutions with $50 Billion or More in Total Assets

(3064-AF05)

The FDIC is inviting comments on an advanced notice of proposed rulemaking to solicit comment on whether and, if so, how, to further tailor or improve its rule requiring certain insured depository institutions to submit resolution plans.

Proposed Rule Stage:

Capital Rule: Supplementary Leverage Ratio Amendments for Custodial Banks (3064-AE81)

Section 402 of the Economic Growth, Regulatory Relief, and Consumer Protection Act requires the federal banking agencies to propose changes to the supplementary leverage ratio denominator for custody banks, and the FDIC, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency therefore intend to publish a new rule to implement section 402.

Resolution Plans (3064-AE93)

The FDIC and the Federal Reserve intend to amend their joint resolution planning regulations to reflect changes to the underlying statute made by the Economic Growth, Regulatory Relief, and Consumer Protection Act (Pub. L. No. 115-174, 132 Stat. 1296 (2018)).

*Proposed Changes to Applicability Thresholds for Regulatory Capital and Liquidity Requirements (3064-AE96)

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 inviting comment on a proposal that would establish risk-based categories for determining applicability of requirements under the regulatory capital rule, the liquidity coverage ratio rule, and the proposed net stable funding ratio rule for large U.S. banking organizations. The proposal would establish four categories of standards and apply tailored capital and liquidity requirements for depository institution subsidiaries of foreign banking organizations subject to each category. The proposal is consistent with a separate proposal issued by the Board that would apply certain prudential standards for large foreign banking organizations, including their subsidiary U.S. intermediate holding companies and their U.S. branch and agency networks, based on the same categories.

*Market Risk Rule-Fundamental Review of the Trading Book (3064-AF01)

The OCC, Board, and FDIC (the Agencies) will undertake to publish a notice of proposed rulemaking to make revisions to their respective capital rule provisions related to market risk.

Final Rule Stage:

Removal of Transferred Office of Thrift Supervision Regulations Regarding Lending and Investment and Amendments to FDIC Rules and Regulations (3064-AE22)

In this rulemaking, the Federal Deposit Insurance Corporation (FDIC) will be proposing 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.

Net Stable Funding Ratio: Liquidity Risk Measurement Standards and Disclosure Requirements (3064-AE44)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation invited comment on a proposed rule that would implement a stable funding requirement, the net stable funding ratio (NSFR), for large and internationally active banking organizations. The NSFR requirement is designed to reduce the likelihood that disruptions to a banking organization's regular sources of funding will compromise its liquidity position, as well as to promote improvements in the measurement and management of liquidity risk. The rule also amended certain definitions in the liquidity coverage ratio rule that are also applicable to the NSFR. The NSFR requirement would apply beginning on January 1, 2018, to bank holding companies, certain savings and loan holding companies, and depository institutions that, in each case, have $250 billion or more in total consolidated assets or $10 billion or more in total on-balance sheet foreign exposure, and to their consolidated subsidiaries that are depository institutions with $10 billion or more in total consolidated assets. In addition, the Board proposed a modified NSFR requirement for bank holding companies and certain savings and loan holding companies that, in each case, have $50 billion or more, but less than $250 billion, in total consolidated assets and less than $10 billion in total on-balance sheet foreign exposure. Neither the proposed NSFR requirement nor the proposed modified NSFR requirement would apply to banking organizations with consolidated assets of less than $50 billion and total on-balance sheet foreign exposure of less than $10 billion. A bank holding company or savings and loan holding company subject to the proposed NSFR requirement or modified NSFR requirement would be required to publicly disclose the company's NSFR and the components of its NSFR each calendar quarter.

Depository Institution Management Interlocks Act Asset Threshold Adjustment (3064-AE57)

The OCC, Board, and the FDIC are seeking comment on a joint proposed rule to revise their respective regulations that implement the Depository Institution Management Interlocks Act (DIMIA). The proposed rule would adjust asset thresholds for the DIMIA major asset prohibition, which prohibits management officials for depository institutions with assets in excess of specified levels from engaging in management interlocks (an individual may not serve as an official of two unaffiliated depository institutions with assets in excess of the specified levels). The levels are currently set at $2.5 billion and $1.5 billion. Based on inflation or market changes, current inflation adjusted thresholds would be $3.6 billion and $2.16 billion.

Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA) (3064-AE59)

In March 2017, 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) submitted a report to Congress pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996, in which they committed to meaningfully reduce regulatory burden, especially on community banking organizations. Consistent with that commitment, the agencies invited public comment on a notice of proposed rulemaking that would simplify compliance with certain aspects of the capital rule. A majority of the proposed simplifications would apply solely to banking organizations that are not subject to the advanced approaches capital rule (non-advanced approaches banking organizations). Specifically, the agencies proposed that non-advanced approaches banking organizations apply a simpler regulatory capital treatment for: (i) Mortgage servicing assets; (ii) certain deferred tax assets arising from temporary differences; (iii) investments in the capital of unconsolidated financial institutions; and (iv) capital issued by a consolidated subsidiary of a banking organization and held by third parties (minority interest). More generally, the proposal also includes revisions to the treatment of certain acquisition, development, or construction exposures that are designed to address comments regarding the current definition of high volatility commercial real estate under the capital rule's standardized approach. The proposed revisions to the treatment of acquisition, development, or construction exposures would not apply to those exposures that are outstanding or committed prior to the proposed rule's effective date. In addition to the proposed simplifications, the Agencies also proposed various additional clarifications and technical amendments to the agencies' capital rule, which would apply to both non-advanced approaches banking organizations and advanced approaches banking organizations.

Proposed Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds (Volcker Rule) (Volcker Rule) (3064-AE67)

The OCC, Board, FDIC, SEC, and CFTC (individually, an Agency, and collectively, the Agencies) are requesting comment on a proposal that would amend the regulations implementing section 13 of the Bank Holding Company Act (BHC Act). Section 13 contains certain restrictions on the ability of a banking entity and nonbank financial company supervised by the Board to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund. The proposed amendments are intended to provide banking entities with clarity about what activities are prohibited and to improve supervision and implementation of section 13.

Liquidity Coverage Ratio Rule: Treatment of Certain Municipal Obligations as Level 2B High-Quality Liquid Assets (3064-AE77)

Pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection Act, 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 jointly issuing and seeking comment on an interim final rule to add liquid and readily-marketable, investment-grade municipal obligations to the list of assets eligible to be included in high-quality liquid assets under the Agencies' Liquidity Coverage Ratio rule.

Regulatory Capital Treatment for Investments in Long-Term Debt Instruments (3064-AE79)

The OCC, Board, and the FDIC (the Agencies) are revising the regulatory capital rule to require Advanced Approaches banking organizations to deduct TLAC instruments from tier 2 capital, including any significant investments in covered debt instruments, a reciprocal cross-holding, or a direct, indirect, or synthetic investment in the banking organization's own covered debt instrument.

Standardized Approach for Counterparty Credit Risk (3064-AE80)

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (together, the Agencies) are implementing a new approach for calculating the exposure amount for derivative contracts under the agencies' regulatory capital rules. The standardized approach for counterparty credit risk (SA-CCR), would replace the Current Exposure Method (CEM) in the capital rules' advanced approaches for calculating risk-weighted assets. The rulemaking also would require advanced approaches banking organizations to determine the exposure amount for derivative contracts using SA-CCR for purposes of calculating its standardized total risk-weighted assets. The rulemaking would allow non-advanced approaches banking organizations to use either CEM or SA-CCR to determine the exposure amount for derivative contracts.

Short-Form Call Report (3064-AE82)

The FDIC, OCC, and Board (the Agencies) are seeking comment on a joint proposed rule to implement section 205 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. Section 205 generally requires the Agencies to jointly issue regulations that allow for a reduced reporting requirement for certain smaller institutions when such institutions submit their statutorily required first and third quarterly reports of condition and income.

Annual Stress Test (3064-AE84)

Pursuant to section 165(i)(2) of the Dodd-Frank Act, the OCC, Board, and FDIC have issued consistent and comparable rules to require banks with over $10 billion in total consolidated assets to conduct annual company run stress tests. Section 401 of the Economic Growth, Regulatory Reform, and Consumer Protection Act amended section 165(i)(2) to raise the applicability threshold from $10 billion to $250 billion in total consolidated assets, and to make other changes. The FDIC plans to initiate a rulemaking to conform its implementing regulations, 12 CFR 325, to these statutory changes.

Exemption from Appraisal Requirements for Certain Transactions Involving Real Property in Rural Areas (3064-AE87)

Volcker Rule Community Bank Relief and Removing Naming Restrictions (3064-AE88)

The FDIC, Board, OCC, CFTC, and SEC seek to implement Sections 203 and 204 of the Economic Growth, Regulatory Relief, and Consumer Protection Act through a notice of proposed rulemaking. Section 203 exempts from the Volcker Rule banks with: (1) Total assets valued at less than $10 billion, and (2) trading assets and liabilities comprising not more than 5% of total assets. Section 204 eases Volcker Rule restrictions on entity name sharing in specified circumstances.

Regulatory Capital Treatment for High Volatility Commercial Real Estate Acquisition, Development, or Construction Exposure (3064-AE90)

In accordance with Section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA or the statute), which was enacted on May 24, 2018, the OCC, FRB, and the FDIC are issuing a notice of proposed rulemaking (NPR) that would revise the existing capital rules to replace the definition of high volatility commercial real estate (HVCRE) exposure with the statutory definition of high volatility commercial real estate acquisition, development, or construction (HVCRE ADC) loan. To facilitate the consistent application of the HVCRE ADC exposure definition, the agencies seek robust comment on the interpretation of the HVCRE ADC loan definition. Finally, the NPR would rescind the frequently asked questions (FAQs) relating to the HVCRE exposure definition.

Community Bank Leverage Ratio (3064-AE91)

In accordance with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which was enacted on May 24, 2018, the FDIC is issuing a notice of proposed rulemaking (NPR) that would revise the existing capital rules to include a new community bank leverage ratio in the FDIC's capital regulations.

*Assessments (3064-AE98)

The Federal Deposit Insurance Corporation (FDIC) invites public comment on a notice of proposed rulemaking (NPR or proposal) that would amend its deposit insurance assessments regulations to apply the community bank leverage ratio (CBLR) framework to the deposit insurance assessment system. The FDIC, the Board of Governors of the Federal Reserve System (Federal Reserve) and the Office of the Comptroller of the Currency (OCC) (collectively, the Federal banking agencies) recently issued an interagency proposal to implement the community bank leverage ratio (the CBLR NPR). Under this proposal, the FDIC would assess all banks that elect to use the CBLR framework (CBLR banks) as small banks. CBLR banks would have the option to use either the CBLR or the tier 1 leverage ratio for the Leverage Ratio that the FDIC uses to calculate an established small bank's assessment rate, and the option of using either CBLR tangible equity or tier 1 capital for calculating their assessment base. Through this NPR, the FDIC also would clarify the following: (1) qualifying community banking organizations that meet the definition of a custodial bank under assessments regulations and that elect to use the CBLR framework would experience no difference in the way that the FDIC calculates its assessments with respect to the custodial bank adjustment; and (2) the assessment regulations would continue to reference the prompt corrective action (PCA) regulations for the definitions of capital categories used in the deposit insurance assessment system, including the proposed CBLR capital categories. To assist banks in understanding the effects of the NPR, the FDIC plans to provide on its website a spreadsheet calculator that estimates deposit insurance assessment amounts under the proposal.

*Margin and Capital Requirements for Covered Swap Entities Agencies (3064-AF00)

The OCC, Board, FDIC, FCA, and FHFA (each an Agency and, collectively, the Agencies) are adopting and invite comment on an interim final rule amending the Agencies' regulations that require swap dealers and security-based swap dealers under the Agencies' respective jurisdictions to exchange margin with their counterparties for swaps that are not centrally cleared (Swap Margin Rule). The Swap Margin Rule takes effect under a phased compliance schedule stretching from 2016 through 2020, and the dealers covered by them continue to hold swaps in their portfolios that were entered into before the effective dates of the rule. These swaps are grandfathered from the Swap Margin Rule's requirements until they expire according to their terms. There are currently banking entities located within the United Kingdom (UK) that conduct swap dealing activities subject to the Swap Margin Rule. The UK has provided formal notice of its intention to withdraw from the European Union (EU) on March 29, 2019, absent a negotiated agreement that would allow these swap dealers located in the UK to continue to be authorized to provide full-scope financial services to swap counterparties located in the EU. The Agencies' interim final rule is designed to address the scenario likely to ensue, whereby swap dealers located in the UK might choose to transfer their existing swap portfolios that face counterparties located in the EU over to an affiliate or other related establishment located within the EU. Such transfers, if carried out in accordance with the conditions of the interim final rule, will not trigger the application of the Swap Margin Rule to swaps that are grandfathered from the rule. Accordingly, the transferred swaps would continue to be grandfathered under the Swap Margin Rule as they are applied to the EU establishments of the swap dealers receiving the transferred swap portfolios.

*Recordkeeping for Timely Deposit Insurance Determination (3064-AF03)

The FDIC seeks to revise the rule the FDIC published in the Federal Register on December 5, 2016, that requires each insured depository institution that has two million or more deposit accounts to configure its information technology system to make deposit insurance calculations and to maintain information needed to determine deposit insurance coverage. The rule would modify various aspects of the information technology system and recordkeeping requirements and matters relating to compliance with the rule and its administration.

*Joint Ownership Deposit Accounts (3064-AF04)

The FDIC seeks to amend the regulation governing one of the requirements for an account to be separately insured as a joint account. Specifically, the rule would provide an alternative method to satisfy the signature card requirement. The signature card requirement could be satisfied by information contained in the deposit account records of the insured depository institution establishing co-ownership of the deposit account, such as evidence that the institution has issued an access mechanism for the account to each co-owner or evidence of usage of the deposit account by each co-owner.

Completed Actions:

Transferred Office of Thrift Supervision Regulations Regarding Fiduciary Powers of State Savings Associations and Consent Requirements for the Exercise of Trust Powers (3064-AE23)

The Federal Deposit Insurance Corporation (FDIC) proposes to rescind and remove from the Code of Federal Regulations the part entitled Fiduciary Powers of State Savings Associations and to amend current FDIC regulations regarding consent to exercise trust powers to reflect the applicability of these parts to both State savings associations and State nonmember banks.

Enhanced Cyber Risk Management Standards (3064-AE45)

On October 26, 2016, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation published in the Federal Register an advance notice of proposed rulemaking (ANPRM) regarding enhanced cyber risk management standards for large and interconnected entities under their supervision and those entities' service providers. The ANPRM addresses five categories of cyber standards: cyber risk governance; cyber risk management; internal dependency management; external dependency management; and incident response, cyber resilience, and situational awareness. Due to the range and complexity of the issues addressed in the ANPRM, the public comment period was extended until February 17, 2017. This action allowed interested persons additional time to analyze the proposal and prepare their comments.

Loans in Areas Having Special Flood Hazards--Private Flood Insurance (3064-AE50)

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 National Credit Union Administration have issued a new proposal to amend their regulations regarding loans in areas having special flood hazards to implement the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. Specifically, the rule would require regulated lending institutions to accept policies that meet the statutory definition of private flood insurance in the Biggert-Waters Act and permit regulated lending institutions to accept flood insurance provided by private insurers that does not meet the statutory definition of private flood insurance on a discretionary basis, subject to certain restrictions.

Disclosure of Financial and Other Information by FDIC-Insured State Nonmember Banks (3064-AE65)

The Federal Deposit Insurance Corporation (FDIC) rescinded and removed 12 CFR part 350, entitled Disclosure of Financial and Other Information By FDIC-Insured State Nonmember Banks. Upon the removal of part 350, all insured State nonmember banks and insured State-licensed branches of foreign banks (collectively, banks) are no longer subject to the disclosure requirements found in part 350. The financial and other information that has been subject to disclosure by individual banks pursuant to part 350 is publicly available through the FDIC's website.

Margin and Capital Requirements for Covered Swap Entities (3064-AE70)

The Board, OCC, FDIC, FCA, and FHFA (each an Agency and, collectively, the Agencies) sought comment on proposed amendments to the minimum margin 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 (Swap Margin Rule). The Agencies proposed these amendments in light of the rules recently adopted by the Board, the OCC, and the FDIC that impose restrictions on certain non-cleared swaps and non-cleared security-based swaps and other financial contracts (Covered QFCs) (the QFC Rules). The QFC Rules amend the definition of Qualifying Master Netting Agreement in the Federal banking agencies' regulatory capital and liquidity rules to ensure that a Covered QFC is not prevented from being part of a Qualifying Master Netting Agreement solely because the Covered QFC conforms to the new requirements in the QFC Rules. The FCA proposed amendments to its capital rules, including potential revisions to its regulatory definition of Qualifying Master Netter Agreement, which is expected to be identical to the definition used in the Federal banking agencies' regulatory capital and liquidity rules. The Agencies proposed to amend the definition of Eligible Master Netting Agreement in the Swap Margin Rule so that it remains harmonized with the amended definition of Qualifying Master Netting Agreement in the Federal banking agencies' regulatory capital and liquidity rules, and amendments to the capital rules that the FCA separately plans to propose. This rule ensures that netting agreements of firms subject to the Swap Margin Rule are not excluded from the definition of Eligible Master Netting Agreement" based solely on their compliance with the QFC Rules. The Agencies also proposed that any legacy non-cleared swap or non-cleared security-based swap (i.e., a non-cleared swap or non-cleared security-based swap entered into before the applicable compliance date) that is not subject to the margin requirements of the Swap Margin Rule would not become subject to the provisions of the Swap Margin Rule if the non-cleared swap or non-cleared security- based swap is amended solely to comply with the requirements of the QFC Rules.

Regulatory Capital Rule: Implementation and Transition of the Current Expected Credit Losses Methodology for Allowances and Related Adjustments to the Regulatory Capital Rule and Conforming Amendments (3064-AE74)

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) invited public comment on a joint proposal to address changes to U.S. generally accepted accounting principles (U.S. GAAP) described in Accounting Standards Update No. 201613, Topic 326, Financial Instruments Credit Losses (ASU 201613), including banking organizations' implementation of the current expected credit losses methodology. Specifically, the proposal would revise the agencies' regulatory capital rules to identify which credit loss allowances under the new accounting standard are eligible for inclusion in regulatory capital and to provide banking organizations the option to phase in the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. The proposal also would amend certain regulatory disclosure requirements to reflect applicable changes to U.S. GAAP covered under ASU 201613. In addition, the Agencies are proposing to make amendments to their stress testing regulations so that covered banking organizations that have adopted ASU 201613 would not include the effect of ASU 201613 on their provisioning for purposes of stress testing until the 2020 stress test cycle. Finally, the Agencies are proposing to make conforming amendments to their other regulations that reference credit loss allowances.

Rules of Practice and Procedure (3064-AE75)

The Federal Deposit Insurance Corporation (FDIC) proposes to amend its rules of practice and procedure under 12 CFR part 308 to: (1) Remove most of the duplicative descriptive language related to civil money penalty (CMP) amounts that is similar to current statutory language, (2) codify in the FDIC's regulations the mandatory statutory formula for inflation adjustments to maximum CMP amounts, and (3) direct readers to the Federal Register rather than the Code of Federal Regulations (CFR) for future annual adjustments to maximum CMP amounts due to inflation. These revisions are intended to simplify the text of the CFR by removing unnecessary and redundant text and to make it easier for readers to locate the current maximum CMP amounts by presenting these amounts as a chart.

Expanded Examination Cycle for Certain Small Insured Depository Institutions (3064-AE76)

The Office of the Comptroller of the Currency, Treasury; Board of Governors of the Federal Reserve System; and Federal Deposit Insurance Corporation (collectively, the Agencies) are jointly issuing and requesting public comment on interim final rules to implement section 210 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act), which was enacted on May 24, 2018. Section 210 of the Act amends section 10(d) of the Federal Deposit Insurance Act to permit the Agencies to examine qualifying insured depository institutions with less than $3 billion in total assets no less than once during each 18-month period. Prior to enactment of the Act, only qualifying insured depository institutions with less than $1 billion in total assets were eligible for an 18-month on-site examination cycle. The interim final rules generally would allow well-capitalized and well-managed institutions with less than $3 billion in total assets to benefit from the extended 18-month examination schedule. In addition, the interim final rules make parallel changes to the Agencies' regulations governing the on-site examination cycle for U.S. branches and Agencies of foreign banks, consistent with the International Banking Act of 1978.

Uniform Rules of Practice and Procedure (3064-AE85)

The OCC, Board, FDIC, and NCUA (the Agencies) will seek comment on amendments to the Uniform Rules of Practice and Procedure applicable to adjudicatory proceedings before the Office of Financial Institution Adjudication (OFIA). The existing regulations have not been updated in thirty years. The goal of the rulemaking is to update the regulations to conform with current practice and technology.

Appropriate Review of Appraisals for Compliance with USPAP (3064-AE86)

The FDIC plans to develop a joint notice of proposed rulemaking with the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the National Credit Union Administration (the Agencies) to implement section 1110 of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Title XI), as amended. Section 1110, as amended, requires that the Agencies prescribe appropriate standards for the performance of real estate appraisals in connection with federally related transactions, which requires at a minimum, among other things, that such appraisals be subject to appropriate review for compliance with the Uniform Standards of Professional Appraisal Practice.

Reciprocal Deposits (3064-AE89)

The FDIC is implementing Section 202 of the Economic Growth, Regulatory Relief, and Consumer Protection Act by incorporating the new reciprocal deposit exception into the FDIC's regulations on brokered deposits.

Depository Institutions Management Interlocks Act Technical Final Rule (3064-AE92)

This final rule is being promulgated in connection with an adjustment of the thresholds for the major assets prohibition of the Depository Institutions Management Interlocks Act (DIMIA) (12 U.S.C. 3201 et seq.) that has been proposed jointly by the FDIC with the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System. The FDIC has decided to use this opportunity to make two purely technical corrections to FDIC Regulations, both pertaining to DIMIA implementation, by means of a separate final rule without notice and comment. The first correction pertains to 12 CFR 303.249 and would correct an erroneous statement. The second pertains to 12 CFR 348.4(i) and would correct a citation. The FDIC has concluded that good cause exists to publish this rule as final without a period of notice and comment and with an effective date as of the date of its publication in the Federal Register because this final rule will only make purely technical corrections and in no way affects any substantive requirements under the DIMIA or its implementing regulation.

*Community Reinvestment Act Relations (3064-AE97)

The Office of the Comptroller of the Currency, Treasury; the Board of Governors of the Federal Reserve System; and the Federal Deposit Insurance Corporation are amending their Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define small bank or small savings association and intermediate small bank or intermediate small savings association. As required by the CRA regulations, the adjustment to the threshold amount is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW).

*Proposed Changes to Applicability Thresholds for Regulatory Capital Requirements for Certain U.S. Subsidiaries of Foreign Banking Organizations and Liquidity Requirements for Foreign Banking Orgs (3064-AE99)

Interagency (FDIC, FRB, and OCC) notice of proposed rulemaking to establish risk-based categories for determining the applicability of regulatory capital and liquidity requirements for insured depository institution subsidiaries of foreign banking organizations. The proposal is similar to a proposal (RIN 3064-AE96) issued by the agencies in 2018 that would establish categories of prudential standards for large U.S. banking organizations.

Long-Term Actions:

Incentive-Based Compensation Arrangements (3064-AD86)

The OCC, Board, FDIC, FHFA, NCUA, and SEC (the Agencies) sought comment on a joint proposed rule to revise the proposed rule the Agencies published in the Federal Register on April 14, 2011, and to implement section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 956 generally requires that the Agencies jointly issue regulations or guidelines: (1) Prohibiting incentive-based payment arrangements that the Agencies determine encourage inappropriate risks by certain financial institutions by providing excessive compensation or that could lead to material financial loss; and (2) requiring those financial institutions to disclose information concerning incentive-based compensation arrangements to the appropriate Federal regulator.

Covered Broker-Dealer Provisions Under Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (3064-AE39)

The Federal Deposit Insurance Corporation and the Securities and Exchange Commission, in accordance with section 205(h) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, jointly proposed a rule to implement provisions applicable to the orderly liquidation of covered brokers and dealers under title II of the Dodd-Frank Act.

Source of Strength (3064-AE61)

The OCC, Board, and FDIC (the appropriate Federal banking agencies) are developing a joint Notice of Proposed Rulemaking which will be published in the Federal Register. The rule, when finalized, will implement section 616(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). That section of the Dodd-Frank Act requires the appropriate Federal banking agencies to jointly issue final rules that ensure that parent companies of subsidiary insured depository institutions serve as a source of financial strength for such institutions.

Quality Control Standards for Automated Valuation Models (3064-AE68)

The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Federal Housing Finance Agency, and the Consumer Financial Protection Bureau are developing a rule to implement section 1473 of the Dodd-Frank Act concerning quality control standards for automated valuation models.

Customer Due Diligence (3064-AE69)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively, the Agencies) are considering a proposal to amend the Agencies' Bank Secrecy Act compliance program rules applicable to banks, Federal and State savings associations, and credit unions. The Agencies plan to issue interim final rules related to recent amendments to the Financial Crimes Enforcement Network (FinCEN) customer due diligence rules for financial institutions under their supervision. As part of that rulemaking, FinCEN amended the elements of the anti-money laundering program financial institutions must implement and maintain in order to satisfy program requirements under 31 U.S.C. 5318(h)(1). The Agencies are amending their anti-money laundering program rules to maintain consistency with the FinCEN Rule.

Appraisal Independence (3064-AE95)

Ensures that real estate appraisers are free to use their independent professional judgment in assigning home values without influence or pressure from those with interests in the transactions and seeks to ensure that appraisers receive customary and reasonable payments for their services.

Federal Deposit Insurance Corporation.

NAME: Valerie Best,

Assistant Executive Secretary.