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
- SEC:
- Announced it is reconsidering the application of its proxy voting rules to proxy voting advice businesses; related staff statement and commissioner statement.
- Spoke about the costs of a new regime for ESG disclosures.
- CFTC:
- Made remarks at a committee meeting exploring the role of carbon markets in the transition to a low-carbon economy.
- FINRA:
- Proposed a rule change related to members’ filing requirements under the Compliance with the Information Requirements of SEA Rule.
- Released a podcast of the 2021 Annual Conference “fireside chat”.
Other
- Congress:
- Senate passed a bill addressing funding concerns in the CFTC Whistleblower Program; the bill now moves to the House for consideration.
- SBA:
- Issued a statement on the closure of the SBA PPP.
- FTC:
- Submitted its annual budget request, performance plan, and performance report to Congress.
- Provided its 2020 Annual Financial Acts of Enforcement Report to the CFPB highlighting activities related to TILA, CLA, and EFTA.
- NY FRB:
- Held a virtual event on “connecting capital to communities” targeting investments in low- and moderate-income communitie.
- FHFA:
- Extended COVID-19 multifamily forbearance through September 30, 2021.
- BIS:
- Sponsored the “Green Swan Conference 2021: Connecting finance on climate”.
- FSB:
- Released a global transition roadmap for LIBOR along with other transition supporting statements and papers.
- Proposed quantitative targets for enhancing cross-border payments.
Industry news headlines
(Some links may require subscription)
- Fed Chair Powell warns of "profound challenges" posed by climate change (CNN).
- Climate change risks will affect U.S. bank capital in long-run - official (Reuters).
- Biden to announce new efforts to narrow the racial wealth gap (CNBC).
- Biden Expands Blacklist of Chinese Companies Banned from US Investment (WSJ).
- States dealt setback in effort to block OCC fintech charter (American Banker).
- Realtor groups asks Supreme Court to block CDC's eviction moratorium (CNN).
- Why more banks are weaning themselves off overdraft fees (American Banker).
- The Economic Recovery Is Here. It’s Unlike Anything You’ve Seen(WSJ).
- There’s a Blindspot in ESG Investing. Here’s How to Fix It(Institutional Investor).
