Washington Report 360 | November 30, 2018

Key highlights

• The FDIC announced plans to “significantly change” the FDIC’s rule for resolution planning of insured depository institutions.
• The Federal Reserve Board published its Financial Stability Report, which summarizes its framework for assessing the resilience of the U.S. financial system.
• Randall Quarles was appointed chair of the Financial Stability Board for a three-year term.

Financial services legislative and regulatory news

FDIC Chair discussed resolution planning and announced plans to “significantly change” the FDIC’s rule for resolution planning of insured depository institutions (IDIs); no IDIs are required to submit plans until the new rule is finalized.

The Federal Reserve, FDIC, and OCC proposed, pursuant to EGRRCPA, to simplify regulatory capital requirements for qualifying community banks that meet a “community bank leverage ratio” greater than 9 percent.

The CFTC amended its margin requirements for uncleared swaps to better align it with the prudential regulators’ rules imposing restrictions on certain qualified financial contracts.

The FDIC approved a joint proposed rule to raise the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000, pursuant to EGRRCPA.

Financial services policy news

The Federal Reserve published its Financial Stability Report, which summarizes its framework for assessing the resilience of the U.S. financial system.

Randall Quarles was appointed chair of the Financial Stability Board for a three-year term.

Michelle W. Bowman was sworn in as a member of the Board of Governors of the Federal Reserve.

The Federal Reserve released results of its bank Senior Financial Officer Survey on reserve balance management strategies and practices.

The CFTC Chair discussed swaps market reform and trade execution as well as benchmark reform, including the transition from LIBOR.

The CFTC's LabCFTC released a primer on smart contracts, which are being used to drive automation in financial markets.

The CFPB published its fifth report on quarterly consumer credit trends, focusing on the reporting of natural disasters in consumer credit records.

The FSB published:

• The 2018 GSIB list; the BCBS published details on its GSIB scoring methodology
• Final recommendations on compensation and misconduct risk
• Two reports on the decline in correspondent banking relationships
• Its 2018 Resolution Report, which updates progress in implementing resolution framework and policy measures for SIFIs
• A discussion paper on central counterparty financial resources and equity treatment in resolution
• A progress report on OTC derivatives market reforms
• A progress report on actions to remove trade reporting legal barriers
• The final report on the effects of financial regulatory reforms on infrastructure finance
• The final report evaluating post-crisis reforms and incentives to central clearing.