Posts Tagged ‘Federal Reserve’

Growing Past $50 Billion: What Banks Need To Know About Section 165 of the Dodd-Frank Act

Section 165(a) of the Dodd-Frank Act requires the Federal Reserve to establish “enhanced supervision and prudential standards” for bank holding companies with more than $50 billion assets. This scrutiny level is stronger than the standards applicable to smaller institutions and increases based on a bank holding company’s unique riskiness. A. Standards the Federal Reserve Must […]

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Federal Reserve Extends FedNow Service Comment Period

Do blog readers like to have their opinions heard? For those that do, the Federal Reserve Board has announced it will extend, until September 9, 2021, the comment period for its proposal to govern funds transfers over the Federal Reserve Banks’ FedNow Service. The FedNow Service is a new 24x7x365 service that will support instant […]

Federal Reserve Releases Bank’s Annual CCAR Stress Test Results

The Federal Reserve released in late June the results of its annual bank stress tests. The Fed’s Comprehensive Capital Analysis and Review (“CCAR”) stress tests are designed to ensure that large banks can lend to households and businesses even in a severe recession. The annual exercise evaluates large banks’ resilience by estimating their loan losses, […]

Federal Reserve Extends Paycheck Protection Program Liquidity Facility to July 30, 2021

While many people are returning to the office after their July 4th festivities carrying on as usual, bankers can return knowing that the Federal Reserve Board has extended the Paycheck Protection Program Liquidity Facility until July 30th. The Paycheck Protection Program Liquidity Facility, or PPPLF, extends term credit to financial institutions making Paycheck Protection Program […]

Federal Reserve and Other Banking Agencies Extend Comment Period for Artificial Intelligence

Perficient highlighted in a blog more than a month ago that the five federal financial institution agencies were seeking public comment to understand the public’s views on the use of AI by financial institutions in their provision of services to customers. Board of Governors of the Federal Reserve System (The Fed) Consumer Financial Protection Bureau […]

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Federal Reserve Board Now Accepting Applications For The Community Advisory Council

The Federal Reserve Board announced this week that it is accepting applications from individuals who wish to be considered for membership on the Community Advisory Council (CAC).  Formed in 2015, CAC advises the Federal Reserve Board on issues affecting consumers and communities.  The Federal Reserve Board also has two other advisory councils with members represent […]

Bank Regulators Seeking Comments on the Use of AI and ML in the Industry

Background: The five federal financial regulatory agencies are gathering insight on financial institutions’ use of artificial intelligence (AI) and machine learning (ML). The five federal agencies are: the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Fed), the National Credit Union Administration (NCUA) and the Office of the […]

Treasury and Federal Reserve Coordinate to Boost Investments in MDIs and CDFIs

In early March, a series of programs were announced by the U.S. Department of the Treasury, and the Federal Reserve subsequently announced rules changes to leverage the impact of the programs.  The largest program announced, dollar-wise, by the Treasury Department was the creation and funding of the Emergency Capital Investment Program (ECIP).  The program was […]

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Impact of Covid-19 Felt in the Shared National Credit Reviews Released by Bank Regulators

To misquote the great poet Alfred Lord Tennyson, “In the spring a young banker’s fancy lightly turns to thoughts of SNC Classifications.” SNC (pronounced like the candy bar but without the “ers”) stands for the Shared National Credit Program, which, since 1977, has assessed risk in the largest and most complex credits shared by multiple […]

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Federal Reserve Changes Derivative Netting Rules

On February 18, the Federal Reserve Board announced a final rule that they claim is intended to reduce risk and increase efficiency in the financial system by applying derivative netting protections to a broader range of financial institutions. Sections 401-407 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) validate netting contracts among […]

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Federal Reserve Releases 2021 CCAR Testing Scenarios

Last Friday, February 12, while many bankers were preparing for a long 3-day weekend or perhaps making preparations for Valentine’s Day celebrations, the Federal Reserve Board released the hypothetical scenarios for its 2021 bank stress tests.  In 2020, the Federal Reserve found that large banks were generally well-capitalized under a range of hypothetical events. The […]