Semiannual Regulatory Flexibility Agenda

FEDERAL RESERVE SYSTEM

12 CFR Ch. II

Semiannual Regulatory Flexibility Agenda

AGENCY:

Board of Governors of the Federal Reserve System.

ACTION:

Semiannual regulatory agenda.

SUMMARY:

The Board is issuing this agenda under the Regulatory Flexibility Act and the Board's Statement of Policy Regarding Expanded Rulemaking Procedures. The Board anticipates having under consideration regulatory matters as indicated below during the period May 1, 2015, through October 31, 2015. The next agenda will be published in fall 2015.

DATES:

Comments about the form or content of the agenda may be submitted anytime during the next six months.

ADDRESSES:

Comments should be addressed to Robert deV. Frierson, Secretary of the Board, Board of Governors of the Federal Reserve System, Washington, DC 20551.

FOR FURTHER INFORMATION CONTACT:

A staff contact for each item is indicated with the regulatory description below.

SUPPLEMENTARY INFORMATION:

The Board is publishing its spring 2015 agenda as part of the Spring 2015 Unified Agenda of Federal Regulatory and Deregulatory Actions, which is coordinated by the Office of Management and Budget under Executive Order 12866. The agenda also identifies rules the Board has selected for review under section 610(c) of the Regulatory Flexibility Act, and public comment is invited on those entries. The complete Unified Agenda will be available to the public at the following Web site:

www.reginfo.gov

. Participation by the Board in the Unified Agenda is on a voluntary basis.

The Board's agenda is divided into four sections. The first, pre-rule stage, reports on matters the Board is considering for future rulemaking. The second section, proposed rule stage, reports on matters the Board may consider for public comment during the next 6 months. The third section, final rule stage, reports on matters that have been proposed and are under Board consideration. And a forth section, completed actions, reports on regulatory matters the Board has completed or is not expected to consider further.

A dot (•) preceding an entry indicates a new matter that was not a part of the Board's previous agenda and which the Board has not completed.

Margaret McCloskey Shanks,

Deputy Secretary of the Board.

Federal Reserve System—Proposed Rule Stage

Sequence No.

Title

Regulation

Identifier No.

384

Regulation Q—Regulatory Capital Rules: Regulatory Capital, Proposed Rule Demonstrating Application of Common Equity Tier 1 Capital Qualification Criteria (Docket No: R-1506)

7100-AE27

385

Regulation CC—Availability of Funds and Collection of Checks (Docket No: R-1409)

7100-AD68

386

Regulation LL—Savings and Loan Holding Companies and Regulation MM—Mutual Holding Companies (Docket No: R-1429)

7100-AD80

Federal Reserve System—Completed Actions

Sequence No.

Title

Regulation

Identifier No.

387

Regulation HH—Financial Market Utilities (Docket No: R-1477)

7100-AE09

388

Regulation WW—Liquidity Coverage Ratio: Liquidity Risk Measurement, Standards, and Monitoring (Docket No: R-1466)

7100-AE03

FEDERAL RESERVE SYSTEM (FRS)

Proposed Rule Stage

384. • Regulation Q—Regulatory Capital Rules: Regulatory Capital, Proposed Rule Demonstrating Application of Common Equity Tier 1 Capital Qualification Criteria (Docket No: R-1506)

Legal Authority:

12 U.S.C. 321; 12 U.S.C. 322

Abstract:

Notice of proposed rulemaking that would illustrate how the Board of Governors of the Federal Reserve System (Board) would apply the common equity tier 1 capital qualification criteria to depository institution holding companies that are organized in forms other than as stock corporations (“proposed rule”). The proposed rule discusses some of the qualification criteria for common equity tier 1 capital under Regulation Q and provides examples of how the Board would apply the criteria in specific situations involving partnerships and limited liability companies. In addition, the proposed rule would amend Regulation Q to address unique issues presented by certain savings and loan holding companies that are trusts and by depository institution holding companies that are employee stock ownership plans.

Timetable:

Action

Date

FR Cite

Board Requested Comment

12/19/14

79 FR 75759

Board Expects Further Action

09/00/15

Regulatory Flexibility Analysis Required:

Yes.

Agency Contact:

Christine Graham, Counsel, Federal Reserve System, Legal Division, Phone: 202 452-3005.

Mark Buresh, Attorney, Federal Reserve System, Legal Division, Phone: 202 452-5270.

Thomas R. Boemio, Manager, Federal Reserve System, Division of Banking Supervision and Regulation, Phone: 202 452-2982.

RIN:

7100-AE27

385. Regulation CC—Availability of Funds and Collection of Checks (Docket No: R-1409)

Legal Authority:

12 U.S.C. 4001 to 4010; 12 U.S.C. 5001 to 5018

Abstract:

The Board of Governors of the Federal Reserve System (the Board) proposed amendments to Regulation CC to facilitate the banking industry's ongoing transition to fully electronic interbank check collection and return, including proposed amendments to condition a depositary bank's right of expeditious return on the depositary bank agreeing to accept returned checks

electronically, either directly or indirectly, from the paying bank. The Board also proposed amendments to the funds availability schedule provisions to reflect the fact that there are no longer any nonlocal checks. The Board proposed to revise the model forms in appendix C that banks may use in disclosing their funds availability policies to their customers and to update the preemption determinations in appendix F. Finally, the Board requested comment on whether it should consider future changes to the regulation to improve the check collection system, such as decreasing the time afforded to a paying bank to decide whether to pay a check in order to reduce the risk to a depositary bank of needing to make funds available for withdrawal before learning whether a deposited check has been returned unpaid.

Timetable:

Action

Date

FR Cite

Board Requested Comments

03/25/11

76 FR 16862

Board Requested Comment on Revised Proposal

02/04/14

79 FR 6673

Board Expects Further Action

05/00/15

Regulatory Flexibility Analysis Required:

Yes.

Agency Contact:

Clinton Chen, Attorney, Federal Reserve System, Legal Division,

Phone:

202 452-3952

RIN:

7100-AD68

386. Regulation LL—Savings and Loan Holding Companies and Regulation MM—Mutual Holding Companies (Docket No: R-1429)

Legal Authority:

5 U.S.C. 552; 5 U.S.C. 559; 5 U.S.C. 1813; 5 U.S.C. 1817; 5 U.S.C. 1828; * * *

Abstract:

The Dodd-Frank Act Wall Street Reform and Consumer Protection Act (the Act) transferred responsibility for supervision of Savings and Loan Holding Companies (SLHCs) and their non-depository subsidiaries from the Office of Thrift Supervision (OTS) to the Board of Governors of the Federal Reserve System (Board), on July 21, 2011. The Act also transferred supervisory functions related to Federal savings associations and State savings associations to the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), respectively. The Board on August 12, 2011, approved an interim final rule for SLHCs, including a request for public comment. The interim final rule transferred from the OTS to the Board the regulations necessary for the Board to supervise SLHCs, with certain technical and substantive modifications. The interim final rule has three components: (1) New Regulation LL (part 238), which sets forth regulations generally governing SLHCs; (2) new Regulation MM (part 239), which sets forth regulations governing SLHCs in mutual form; and (3) technical amendments to existing Board regulations necessary to accommodate the transfer of supervisory authority for SLHCs from the OTS to the Board. The structure of interim final Regulation LL closely follows that of the Board's Regulation Y, which governs bank holding companies, in order to provide an overall structure to rules that were previously found in disparate locations. In many instances, interim final Regulation LL incorporated OTS regulations with only technical modifications to account for the shift in supervisory responsibility from the OTS to the Board. Interim final Regulation LL also reflects statutory changes made by the Dodd-Frank Act with respect to SLHCs, and incorporates Board precedent and practices with respect to applications processing procedures and control issues, among other matters. Interim final Regulation MM organized existing OTS regulations governing SLHCs in mutual form (MHCs) and their subsidiary holding companies into a single part of the Board's regulations. In many instances, interim final Regulation MM incorporated OTS regulations with only technical modifications to account for the shift in supervisory responsibility from the OTS to the Board. Interim final Regulation MM also reflects statutory changes made by the Dodd-Frank Act with respect to MHCs. The interim final rule also made technical amendments to Board rules to facilitate supervision of SLHCs, including to rules implementing Community Reinvestment Act requirements and to Board procedural and administrative rules. In addition, the Board made technical amendments to implement section 312(b)(2)(A) of the Act, which transfers to the Board all rulemaking authority under section 11 of the Home Owner's Loan Act relating to transactions with affiliates and extensions of credit to executive officers, directors, and principal shareholders. These amendments include revisions to parts 215 (Insider Transactions) and part 223 (Transactions with Affiliates) of Board regulations.

Timetable:

Action

Date

FR Cite

Board Requested Comments

09/13/11

76 FR 56508

Board Expects Further Action

06/00/15

Regulatory Flexibility Analysis Required:

Yes.

Agency Contact:

C. Tate Wilson, Counsel, Federal Reserve System, Legal Division,

Phone:

202 452-3696.

Claudia Von Pervieux, Counsel, Federal Reserve System, Legal Division,

Phone:

202 452-2552.

RIN:

7100-AD80

FEDERAL RESERVE SYSTEM (FRS)

Completed Actions

387. Regulation HH—Financial Market Utilities (Docket No: R-1477)

Legal Authority:

12 U.S.C. 5464(a)(1)(A)

Abstract:

The Board of Governors of the Federal Reserve System (Board) finalized amendments to the risk-management standards currently in the Board's Regulation HH, part 234 of title 12 of the Code of Federal Regulations, by replacing the previous risk-management standards in section 234.3 (for payment systems) and section 234.4 (for central securities depositories and central counterparties) with a common set of risk-management standards applicable to all types of designated FMUs in section 234.3. The Board also finalized related amendments to definitions in section 234.2.

Timetable:

Action

Date

FR Cite

Board Requested Comments

01/22/14

79 FR 3666

Board Adopted Final Rule

11/05/14

79 FR 65543

Final Action Effective

12/31/14

Regulatory Flexibility Analysis Required:

Yes.

Agency Contact:

Jennifer A. Lucier, Deputy Associate Director, Federal Reserve System, Reserve Bank Operations and Payment Systems,

Phone:

202 872-7581.

Chris Clubb, Special Counsel, Federal Reserve System, Legal Division,

Phone:

202 452-3904.

RIN:

7100-AE09

388. Regulation WW—Liquidity Coverage Ratio: Liquidity Risk Measurement, Standards, and Monitoring (Docket No: R-1466)

Legal Authority:

12 U.S.C. 248(a); 12 U.S.C. 321; 12 U.S.C. 481; 12 U.S.C. 1818; * * *

Abstract:

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC), have finalized a rule that implements quantitative liquidity requirements consistent with the liquidity coverage ratio standard established by the Basel Committee on Banking Supervision. The requirement is designed to promote short-term resilience of the liquidity risk profile of internationally active banking organizations thereby improving the banking sectors ability to absorb shocks arising from financial and economic stress, as well as improvements in the measurement of liquidity risk. The rule applies to all internationally active banking organizations generally bank holding companies certain savings and loan holding companies and depository institutions with more than $250 billion in total assets or more than $10 billion in on-balance sheet foreign exposure and to their consolidated subsidiary depository institutions with $10 billion or more in total consolidated assets. The rule became effective January 1, 2015. The Board also finalized on its own a modified liquidity coverage ratio standard that is less stringent than the full LCR by reducing net outflows by 30 percent. The modified LCR applies to bank holding companies and certain savings and loan holding companies that have $50 billion or more in consolidated assets but do not meet the threshold described above. The modified LCR becomes effective January 1, 2016.

Timetable:

Action

Date

FR Cite

Board Requested Comments

11/29/13

78 FR 71818

Board Adopted Final Rule

10/10/14

79 FR 61440

Final Action Effective

01/01/16

Regulatory Flexibility Analysis Required:

Yes.

Agency Contact:

Dafina Stewart, Counsel, Federal Reserve System, Division of Banking Supervision and Regulation,

Phone:

202 452-3876.

Connie Horsley, Assistant Director, Federal Reserve System, Division of Banking Supervision and Regulation,

Phone:

202 452-5239.

Anna Lee Hewko, Deputy Associate Director, Federal Reserve System, Division of Banking Supervision and Regulation,

Phone:

202 530-6260.

RIN:

7100-AE03

[FR Doc. 2015-14376 Filed 6-17-15; 8:45 am]

BILLING CODE 6210-01-P