Key highlights
- The FRB announced new credit facilities, including one to support the SBA’s new Paycheck Protection Program, one to support states and municipalities, and two under the Main Street Lending Program. The facilities draw on funding provided by the Treasury through the CARES Act.
- The Federal Reserve Bank of New York opened registration for the FRB’s Commercial Paper Funding Facility; the program will commence April 14.
- Regulatory focus on implementing the CARES Act provisions through amendments to regulatory capital, Community Bank Leverage Ratio, and loan modifications and forbearance; additional focus on strengthening conduct and controls seen in SEC and FINRA Regulation BI releases.
- Growing focus on loan modifications and loss mitigation, directing servicers and financial institutions to support borrowers and comply with consumer protection laws.
Financial services regulatory and policy news
Banking
- Federal banking agencies (FRB, FDIC, OCC):
- Issued an interim final rule amending the regulatory capital rules for the PPPLF and PPP loans
FRB, FDIC, OCC, April 9, 2020 - Announced changes to the community bank leverage ratio
FRB, FDIC, OCC, April 6, 2020 - Encouraged mortgage servicers to work with struggling homeowners
FRB, FDIC, OCC, CFPB, NCUA, Conference of State Bank Supervisors, April 3, 2020 - Issued a revised statement on loan modifications and COVID-19
FRB, FDIC, OCC, CFPB, NCUA, CSBS, April 7, 2020
- Issued an interim final rule amending the regulatory capital rules for the PPPLF and PPP loans
- FRB:
- CFPB:
- Released a video on obtaining mortgage forbearance due to COVID-19
CFPB, April 3, 2020 - Released its FY19 Office of Servicemember Affairs Annual Report
CFPB, April 3, 2020
- Released a video on obtaining mortgage forbearance due to COVID-19
Capital Markets
- SEC:
- Adopted enhanced standards for central counterparties and central securities depositories
- SEC, April 9, 2020
- Provided temporary conditional exemptive relief for BDCs regarding investments in small- and mid-sized businesses
SEC, April 8, 2020 - Adopted offering reforms for BDCs and registered closed-end funds
SEC, April 8, 2020 - Published risk alerts setting expectations for inspections on compliance with Reg BI and Form CRS
SEC, April 7, 2020
- FINRA:
- Aligned with SEC on examinations for compliance with Reg BI and Form CRS
FINRA, April 8, 2020 - Proposed a rule change to address brokers with a significant history of misconduct
FINRA, April 3, 2020 - Highlighted firm practices observed in Reg BI preparedness reviews
FINRA, April 8, 2020
- Aligned with SEC on examinations for compliance with Reg BI and Form CRS
Other
- Treasury and SBA publish PPP lender application for nonbanks
Treasury, SBA, April 8, 2020 - FinCEN provided guidance on BSA/AML issues and COVID-19
Treasury, FinCEN, April 3, 2020 - FRBNY opened registration for the CPFF; announced April 14 launch
Federal Reserve Bank of New York, April 6, 2020 - Federal Reserve Banks published the Small Business Credit Survey: 2020 Report on Employer Firms
FRB NY, April 7, 2020 - ARRC announced spread adjustment methodology for cash products and SOFR
ARRC, FRB NY, April 8, 2020 - BIS and IOSCO deferred final implementation phases for margin requirements for non-centrally cleared derivatives
BIS, IOSCO, April 3, 2020