Insight

Washington Report 360 | June 4 , 2021

In this issue: Climate change and the financial system; Focus on DE&I to address racial equity gap; FRB focus on broad implementation of FedNow; FRB plan to wind down the SMCCF

Amy S. Matsuo

Amy S. Matsuo

ESG and Regulatory Insights Lead, KPMG LLP

Key Highlights

  • FRB Chair says climate change poses “profound challenges” for the financial system; OCC Acting Comptroller says that climate change will “eventually” be factored into regulatory capital requirements; BIS sponsored a “Green Swan Conference” on financial sector action against climate change-related risk.
  • Focus on DE&I seen in President Biden’s plans to address racial equity gap (including through appraisals, insurance, small business credit), a CFPB blog post, and NY FRB virtual event on sourcing capital to LMI communities.
  • FRB focus on preparing for broad implementation of the FedNow service, which is expected to facilitate real-time payments beginning 2023, seen in new rule proposals and changes to the Policy on Payment System Risk.
  • FRB will begin winding down the portfolio of the Secondary Market Corporate Credit Facility (SMCCF), a temporary emergency lending facility that closed on December 31, 2020.

Financial services regulatory and policy news

Banking

  • FRB:
  • Proposed a new set of rules to govern funds transfers over the FedNow service (expected to begin 2023).
  • Proposed changes to its Policy on Payment System Risk that would modify provisions for intraday credit and support the FedNow service.
  • Finalized a rule amending Regulation D with regard to interest on reserve balances.
  • Announced plans to wind down the SMCCF temporary lending facility.
  • CFPB:
  • Published a blog addressing racial inequities in consumer markets.

Capital Markets

Other

Industry news headlines
(Some links may require subscription)


Related content