Insight

Washington Report 360 | February 26, 2021

SEC climate-related disclosures; Treasury climate-related stress testing; Plan for CRA reform; White House fact sheet on SBA PPP

Amy S. Matsuo

Amy S. Matsuo

ESG and Regulatory Insights Lead, KPMG LLP

Key Highlights

  • SEC will enhance its focus on climate-related disclosure and begin updating its 2010 guidance.
  • Treasury Secretary Yellen suggested Treasury might facilitate FRB efforts with climate-related stress testing, adding that such tests would not have “the same status in terms of limiting payouts and capital requirements” but would assist both regulators and financial services companies in assessing risks.
  • In Congressional hearings, FRB Chair Powell indicated the banking agencies were working on a plan for CRA reform, advocated a legislative approach to creating fallbacks for the LIBOR transition, and promoted a move toward standardized climate disclosure.
  • The White House issued a fact sheet announcing changes to the SBA PPP, including a 14-day exclusive application period for very small businesses and revised calculations of loan amounts for businesses without employees.

Financial services regulatory and policy news

Banking

  • Federal banking agencies (FRB, OCC, FDIC):
  • FRB:
    • Spoke about:
    • economic inclusion in lower-income communities
      • full employment in the context of the Federal Reserve’s dual mandate given the Administration’s priorities of social/racial equity
      • the role of stress testing in bank supervision
  • FDIC:
    • Released technical assistance videos to help institutions mitigate fair lending risk
    • Released the fourth quarter 2020 Banking Profile finding FDIC-insured institutions reported nearly $60 billion of net income
  • CFPB:
    • Stated it is considering extending the June 1, 2021 compliance date for the General qualified mortgage final rule

Capital Markets

Insurance

Industry news headlines
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