Insight

Washington Report 360 | May 21, 2021

Agencies directed to assess risk of climate change; OCC reconsiders final rule amending CRA; Focus on crypto and digital assets

Amy S. Matsuo

Amy S. Matsuo

ESG and Regulatory Insights Lead, KPMG LLP

Key Highlights

  • A new Executive Order directs federal financial agencies to quantify, disclose, and mitigate the financial risk of climate change on public and private assets; FSOC members are directed to report on incorporating climate-related financial risk mitigation into regulatory and supervisory practices.
  • OCC is reconsidering its June 2020 final rule amending its CRA regulations and will not finalize its related proposed rule issued in December 2020; importantly, OCC will continue to implement provisions of the June 2020 rule that became effective October 1, 2020.
  • Increasing focus on crypto and digital assets seen in FRB remarks, FDIC request for information, FTC scams report, and Senate letter to OCC.

Financial services regulatory and policy news

Banking

  • Federal agencies (FRB, FDIC, OCC, CFPB, NCUA):
  • Extended the comment period for information on financial institutions’ use of AI.
  • Federal agencies (FRB, FDIC, OCC):
  • Proposed requirements for tax allocation agreements between institutions and their holding companies in a consolidated tax filing group.
  • FRB:
  • Outlined the FRB’s response to technological advances in payments, anticipated release of a discussion paper, and consideration of a central bank digital currency.
  • Released survey results about bank senior financial officers’ strategies and practices for managing reserve balances.
  • Extended its rule permitting certain bank directors and shareholders to apply to their bank for SBA PPP funds.
  • OCC:
  • Announced it is reconsidering its June 2020 rule implementing the CRA and does not plan to finalize its related December 2020 proposal.
  • Published its Spring 2021 Semiannual Risk Perspective.
  • FDIC:
  • Sought comment on insured depository institutions’ current and potential digital asset activities.

Capital Markets

  • SEC:
  • Spoke about data gaps and data-driven regulation.
  • FINRA:
  • Released a podcast discussing tips for practitioners using its dispute and resolution services in a virtual setting.

Other

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