82_FR_40600 82 FR 40437 - Semiannual Agenda of Regulations

82 FR 40437 - Semiannual Agenda of Regulations

FEDERAL DEPOSIT INSURANCE CORPORATION

Federal Register Volume 82, Issue 163 (August 24, 2017)

Page Range40437-40442
FR Document2017-17016

The Federal Deposit Insurance Corporation (FDIC) is hereby publishing items for the Spring 2017 Unified Agenda of Federal Regulatory and Deregulatory Actions. The agenda contains information about FDIC's current and projected rulemakings, existing regulations under review, and completed rulemakings.

Federal Register, Volume 82 Issue 163 (Thursday, August 24, 2017)
[Federal Register Volume 82, Number 163 (Thursday, August 24, 2017)]
[Unknown Section]
[Pages 40437-40442]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-17016]



[[Page 40437]]

Vol. 82

Thursday,

No. 163

August 24, 2017

Part XXV





 Federal Deposit Insurance Corporation





-----------------------------------------------------------------------





 Semiannual Regulatory Agenda

Federal Register / Vol. 82 , No. 163 / Thursday, August 24, 2017 / 
Unified Agenda

[[Page 40438]]


-----------------------------------------------------------------------

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Ch. III


Semiannual Agenda of Regulations

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Semiannual regulatory agenda.

-----------------------------------------------------------------------

SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is hereby 
publishing items for the Spring 2017 Unified Agenda of Federal 
Regulatory and Deregulatory Actions. The agenda contains information 
about FDIC's current and projected rulemakings, existing regulations 
under review, and completed rulemakings.

FOR FURTHER INFORMATION CONTACT: Robert E. Feldman, Executive 
Secretary, Federal Deposit Insurance Corporation, 550 17th Street NW., 
Washington, DC 20429.

SUPPLEMENTARY INFORMATION: Twice each year, the FDIC publishes an 
agenda of regulations to inform the public of its regulatory actions 
and to enhance public participation in the rulemaking process. 
Publication of the agenda is in accordance with the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). The FDIC amends its regulations 
under the general rulemaking authority prescribed in section 9 of the 
Federal Deposit Insurance Act (12 U.S.C. 1819) and under specific 
authority granted by the Act and other statutes.

Proposed Rule Stage

Enhanced Cyber Risk Management Standards (3064-AE45)

    On October 26, 2016, the Board of Governors of the Federal Reserve 
System, the Office of the Comptroller of the Currency, and the Federal 
Deposit Insurance Corporation published in the Federal Register an 
advanced notice of proposed rulemaking (ANPRM) regarding enhanced cyber 
risk management standards for large and interconnected entities under 
their supervision and those entities' service providers. The ANPRM 
addresses five categories of cyber standards: Cyber risk governance; 
cyber risk management; internal dependency management; external 
dependency management; and incident response, cyber resilience, and 
situational awareness. Due to the range and complexity of the issues 
addressed in the ANPRM the public comment period was extended until 
February 17, 2017. This action allowed interested persons additional 
time to analyze the proposal and prepare their comments.

* Real Estate Appraisals (3064-AE56)

    The OCC, Board, FDIC, and NCUA (collectively, the Agencies) are 
seeking comment on a proposed rule to amend the agencies' regulations 
regarding appraisals of real estate, adopted pursuant to title XI of 
the Financial Institutions Reform, Recovery, and Enforcement Act of 
1989 (Title XI). Title XI requires the agencies to adopt regulations 
regarding the performance of appraisals used in connection with 
federally related transactions (Title XI appraisals) within the 
jurisdiction of each agency. As discussed below, the agencies received 
comments requesting that the agencies require title XI appraisals for 
fewer transactions as part of a regulatory review process mandated by 
the Economic Growth and Regulatory Paperwork Reduction Act. The 
proposed amendments would increase the threshold level at or below 
which title XI appraisals are not required for commercial real estate 
loans to $400,000, as defined in this regulation. For commercial real 
estate loans below the threshold, the amended rule would require 
institutions to obtain an evaluation of the real property collateral 
consistent with safe and sound banking practices, if the institution 
does not obtain a title XI appraisal. The agencies also propose to 
amend their appraisal regulations to require that appraisals for 
federally related transactions are subject to appropriate review for 
compliance with the Uniform Standards of Professional Appraisal 
Practice, as required by an amendment to title XI included in section 
1473(e) of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act.

* Management Official Interlocks (3064-AE57)

    The OCC, Board, and the FDIC are seeking comment on a joint 
proposed rule to revise their respective regulations that implement the 
Depository Institution Management Interlocks Act (DIMIA). The proposed 
rule would adjust asset thresholds for the DIMIA major asset 
prohibition, which prohibits management officials for depository 
institutions with assets in excess of specified levels from engaging in 
management interlocks (an individual may not serve as an official of 
two unaffiliated depository institutions with assets in excess of the 
specified levels). The levels are currently set at $2.5 billion and 
$1.5 billion. Based on inflation or market changes, current inflation 
adjusted thresholds would be $3.6 billion and $2.16 billion.

* Community Reinvestment Act Regulations (3064-AE58)

    The Office of the Comptroller of the Currency, Board of Governors 
of the Federal Reserve System, and the Federal Deposit Insurance 
Corporation propose (1) To amend their regulations implementing the 
Community Reinvestment Act to update the existing definitions of home 
mortgage loan and consumer loan, related cross references, and the 
public file content requirements to reflect recent revisions made by 
the Consumer Financial Protection Bureau to Regulation C, which 
implements the Home Mortgage Disclosure Act, and (2) to remove obsolete 
references to the Neighborhood Stabilization Program.

Regulatory Capital Rules: Simplification of Generally Applicable Rules 
(3064-AE59)

    The OCC, Board, and FDIC (the Agencies) seek comment on a joint 
proposed rule to revise the generally applicable capital rules with the 
goal of meaningfully reducing regulatory burden on community banking 
organizations while at the same time maintaining safety and soundness 
and the quality and quantity of regulatory capital in the banking 
system. The proposal includes (1) Replacing the framework's complex 
treatment of high volatility commercial real estate (HVCRE) exposures 
with a more straightforward treatment for most acquisition, 
development, or construction (ADC) loans; (2) simplifying the current 
regulatory capital treatment for mortgage servicing assets (MSAs), 
timing difference deferred tax assets (DTAs), and holdings of 
regulatory capital instruments issued by financial institutions; and 
(3) simplifying the current limitations on minority interests in 
regulatory capital.

* Reporting and Recordkeeping Requirements for Covered Trading 
Activities (3064-AE60)

    The OCC, Board, FDIC, CFTC, and SEC are requesting comment on a 
proposed rule that would modify the reporting and recordkeeping 
requirements for covered trading activities under appendix A of the 
final rule implementing section 13 of the Bank Holding Company Act of 
1956, which was added by section 619 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act. The Agencies adopted a final rule 
implementing section 13 that became effective on April 1, 2014. In 
appendix A of the final rule, the Agencies said they would review the 
data collected and revise the collection requirement as appropriate

[[Page 40439]]

based on a review of the data collected prior to September 30, 2015.

* Source of Strength (3064-AE61)

    The OCC, Board, and FDIC (the appropriate Federal banking agencies) 
are developing a joint Notice of Proposed Rulemaking which will be 
published in the Federal Register. The rule, when finalized, will 
implement section 616(d) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank Act). That section of the Dodd-
Frank Act requires the appropriate Federal banking agencies to jointly 
issue final rules that ensure that parent companies of subsidiary 
insured depository institutions serve as a source of financial strength 
for such institutions.

Final Rule Stage

Net Stable Funding Ratio: Liquidity Risk Measurement Standards and 
Disclosure Requirements (3064-AE44)

    The Office of the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, and the Federal Deposit 
Insurance Corporation invited comment on a proposed rule that would 
implement a stable funding requirement, the net stable funding ratio 
(NSFR), for large and internationally active banking organizations. The 
proposed NSFR requirement is designed to reduce the likelihood that 
disruptions to a banking organization's regular sources of funding will 
compromise its liquidity position, as well as to promote improvements 
in the measurement and management of liquidity risk. The proposed rule 
would also amend certain definitions in the liquidity coverage ratio 
rule that are also applicable to the NSFR. The proposed NSFR 
requirement would apply beginning on January 1, 2018, to bank holding 
companies, certain savings and loan holding companies, and depository 
institutions that, in each case, have $250 billion or more in total 
consolidated assets or $10 billion or more in total on-balance sheet 
foreign exposure, and to their consolidated subsidiaries that are 
depository institutions with $10 billion or more in total consolidated 
assets. In addition, the Board proposed a modified NSFR requirement for 
bank holding companies and certain savings and loan holding companies 
that, in each case, have $50 billion or more, but less than $250 
billion, in total consolidated assets and less than $10 billion in 
total on-balance sheet foreign exposure. Neither the proposed NSFR 
requirement nor the proposed modified NSFR requirement would apply to 
banking organizations with consolidated assets of less than $50 billion 
and total on-balance sheet foreign exposure of less than $10 billion. A 
bank holding company or savings and loan holding company subject to the 
proposed NSFR requirement or modified NSFR requirement would be 
required to publicly disclose the company's NSFR and the components of 
its NSFR each calendar quarter.

* Restrictions on Qualified Financial Contracts of Certain FDIC-
Supervised Institutions; Revisions to the Definition of Qualifying 
Master Netting Agreement and Related Definitions (3064-AE46)

    The FDIC is proposing to add a new part 382 to its rules to improve 
the resolvability of systemically important U.S. banking organizations 
and systemically important foreign banking organizations and enhance 
the resilience and the safety and soundness of certain state savings 
associations and state-chartered banks that are not members of the 
Federal Reserve System (state non-member banks or SNMBs) for which the 
FDIC is the primary federal regulator (together, FSIs or FDIC-
supervised institutions). Under this proposed rule, covered FSIs would 
be required to ensure that covered qualified financial contracts (QFCs) 
to which they are a party provide that any default rights and 
restrictions on the transfer of the QFCs are limited to the same extent 
as they would be under the Dodd-Frank Wall Street Reform and Consumer 
Protection Act and the Federal Deposit Insurance Act. In addition, 
covered FSIs would generally be prohibited from being party to QFCs 
that would allow a QFC counterparty to exercise default rights against 
the covered FSI based on the entry into a resolution proceeding under 
the Dodd-Frank Act, FDI Act, or any other resolution proceeding of an 
affiliate of the covered FSI.
    The proposal would also amend the definition of qualifying master 
netting agreement in the FDIC's capital and liquidity rules, and 
certain related terms in the FDIC's capital rules. These proposed 
amendments are intended to ensure that the regulatory capital and 
liquidity treatment of QFCs to which a covered FSI is party would not 
be affected by the proposed restrictions on such QFCs. The requirements 
of this proposed rule are substantively identical to those contained in 
notice of proposed rulemaking issued by the Board of Governors of the 
Federal Reserve System on May 3, 2016, regarding covered entities, and 
the notice of proposed rulemaking issued by the Office of the 
Comptroller of the Currency on August 19, 2016, regarding covered 
banks.

* Removal of Transferred OTS Regulations Regarding Minimum Security 
Procedures Amendments (3064-AE47)

    The Federal Deposit Insurance Corporation proposed to rescind and 
remove a part from the Code of Federal Regulations entitled Security 
Procedures and to amend FDIC regulations to make the removed Office of 
Thrift Supervision regulations applicable to State savings 
associations.

* Removal of Transferred OTS Regulations Regarding Consumer Protection 
in Sales of Insurance and Amendments to FDIC Consumer Protection in 
Sales of Insurance Regulation (3064-AE49)

    The Federal Deposit Insurance Corporation (FDIC) proposed to 
rescind and remove from the Code of Federal Regulations 12 CFR part 
390, subpart I, entitled Consumer Protection in Sales of Insurance. 
This subpart was included in the regulations that were transferred to 
the FDIC from the Office of Thrift Supervision on July 21, 2011, in 
connection with the implementation of applicable provisions of title 
III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. 
The requirements for State savings associations in part 390, subpart I 
are substantively similar to the requirements in the FDIC's 12 CFR part 
343, which is also entitled Consumer Protection in Sales of Insurance 
and is applicable for all insured depository institutions (IDIs) for 
which the FDIC has been designated the appropriate Federal banking 
agency.
    The FDIC proposed to rescind in its entirety part 390, subpart I 
and to modify the scope of part 343 to include State savings 
associations and their subsidiaries to conform to and reflect the scope 
of the FDIC's current supervisory responsibilities as the appropriate 
Federal banking agency. The FDIC also proposed to define FDIC-
supervised insured depository institution or institution and State 
savings association. Finally, the FDIC proposed to transfer an 
anticoercion and antitying provision from part 390, subpart I that is 
applicable to State savings associations. Upon removal of part 390, 
subpart I, the Consumer Protection in Sales of Insurance, regulations 
applicable for all IDIs for which the FDIC has been designated the 
appropriate Federal banking agency will be found at 12 CFR part 343.

[[Page 40440]]

* Loans in Areas Having Special Flood Hazards--Private Flood Insurance 
(3064-AE50)

    The Office of the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, the Federal Deposit Insurance 
Corporation, the Farm Credit Administration, and the National Credit 
Union Administration have issued a new proposal to amend their 
regulations regarding loans in areas having special flood hazards to 
implement the private flood insurance provisions of the Biggert-Waters 
Flood Insurance Reform Act of 2012. Specifically, the proposed rule 
would require regulated lending institutions to accept policies that 
meet the statutory definition of private flood insurance in the 
Biggert-Waters Act and permit regulated lending institutions to accept 
flood insurance provided by private insurers that does not meet the 
statutory definition of private flood insurance on a discretionary 
basis, subject to certain restrictions.

* Regulatory Capital Rules: To Rescind the FDIC's Capital Rules That 
Are No Longer Effective Following the Implementation of Capital Rules 
Consistent With Basel III (3064-AE51)

    This final rule rescinds the capital regulations in part 325 and 
subparts Y and Z of part 390 of the FDIC's codified rules (the 
superseded capital rules) that were no longer effective following the 
January 1, 2015, implementation of the capital rules consistent with 
the Basel III initiatives. The final rule also makes conforming changes 
to sections in the FDIC's codified rules that refer to the superseded 
capital rules. The FDIC has concluded that good cause exists to publish 
this rule as final without a period of notice and comment and with an 
effective date as of the date of its publication in the Federal 
Register because this rule rescinds the superseded capital rules and 
other sections of the FDIC's codified rules that refer to the 
superseded capital rules and imposes no new requirement on FDIC-
supervised institutions.

* Revision of the FDIC's Freedom of Information Act Regulations (3064-
AE53)

    This rule amends the Federal Deposit Insurance Corporation's 
regulations under the Freedom of Information Act (FOIA) to incorporate 
certain changes made to the FOIA by the FOIA Improvement Act of 2016. 
In addition, this rule amends certain provisions to reflect changes 
brought about by prior amendments to the FOIA that had been 
incorporated into Agency practice and corrects inaccurate contact 
information and adjusts numbering and lettering of current provisions 
because of additions to the regulations.

* Recordkeeping Requirements for Qualified Financial Contracts (3064-
AE54)

    The FDIC proposes to amend its regulations regarding Recordkeeping 
Requirements for Qualified Financial Contracts (Part 371) which 
requires insured depository institutions (IDIs) in a troubled condition 
to keep records relating to qualified financial contracts (QFCs) to 
which they are party. The proposed rule would (i) Simplify QFC 
recordkeeping for large banks by aligning requirements with the rule of 
the US Treasury governing QFC recordkeeping of certain non-bank 
affiliates; (ii) require such large banks to keep QFC records of 
certain of their subsidiaries; (iii) for all other IDIs subject to part 
371, add and delete a limited number of data requirements and make 
certain formatting changes with respect to the QFC recordkeeping 
requirements; (iv) provide additional time for certain IDIs in a 
troubled condition to comply with part 371; and (v) include certain 
other changes, including changes relating to certain extension 
procedures and clarifications relating to the timing for creation of 
daily records.

Long-Term Actions

Incentive-Based Compensation Arrangements (3064-AD86)

    The OCC, Board, FDIC, FHFA, NCUA, and SEC (the Agencies) sought 
comment on a joint proposed rule to revise the proposed rule the 
Agencies published in the Federal Register on April 14, 2011, and to 
implement section 956 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act. Section 956 generally requires that the Agencies 
jointly issue regulations or guidelines: (1) Prohibiting incentive-
based payment arrangements that the Agencies determine encourage 
inappropriate risks by certain financial institutions by providing 
excessive compensation or that could lead to material financial loss; 
and (2) requiring those financial institutions to disclose information 
concerning incentive-based compensation arrangements to the appropriate 
Federal regulator.

Treatment of Certain Collateralized Debt Obligations Backed Primarily 
by Trust Preferred Securities; Prohibitions and Restrictions on Certain 
Interests in Hedge Funds and Private Equity Funds (3064-AE11)

    The Office of the Comptroller of the Currency, the Federal Reserve 
Board, the Federal Deposit Insurance Corporation, the U.S. Commodity 
Futures Trading Commission, and the Securities Exchange Commission 
(individually, an Agency, and collectively, the Agencies) will be 
adopting an interim final rule that would permit banking entities to 
retain investments in certain pooled investment vehicles that invested 
their offering proceeds primarily in trust preferred or subordinated 
debt securities issued by community banking organizations of the type 
grandfathered under section 171 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act. The interim final rule is a companion rule 
to the final rules adopted by the Agencies to implement section 13 of 
the Bank Holding Company Act of 1956, which was added by section 619 of 
the Dodd-Frank Act.

Removal of Transferred Office of Thrift Supervision Regulations 
Regarding Lending and Investment and Amendments to FDIC Rules and 
Regulations (3064-AE22)

    In this rulemaking, the Federal Deposit Insurance Corporation 
(FDIC) will be proposing to rescind and remove from the Code of Federal 
Regulations 12 CFR part 390, subpart P, entitled Lending and Investment 
(part 390, subpart P). This subpart was included in the regulations 
that were transferred to the FDIC from the Office of Thrift Supervision 
on July 21, 2011, in connection with the implementation of applicable 
provisions of title III of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act. Upon removal of part 390, subpart P, all 
insured depository institutions for which the FDIC is the appropriate 
Federal banking agency will follow the safety and soundness standards 
contained in 12 CFR part 364 of the FDIC's Rules and Regulations and 
the real-estate lending standards found in 12 CFR part 365 of the 
FDIC's Rules.

Transferred Office of Thrift Supervision Regulations Regarding 
Fiduciary Powers of State Savings Associations (3064-AE23)

    The Federal Deposit Insurance Corporation (FDIC) will be proposing 
to rescind and remove from the Code of Federal Regulations 12 CFR part 
390

[[Page 40441]]

subpart J, entitled Fiduciary Powers of State Savings Associations and 
all references thereto, and amend certain sections of 12 CFR parts 333 
and 303 regarding consent to exercise trust powers to reflect their 
applicability to State savings associations. Part 390 subpart J was 
included in the regulations that were transferred to the FDIC from the 
Office of Thrift Supervision on July 21, 2011, in connection with the 
implementation of applicable provisions of title III of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act. Upon removal of part 
390 subpart J from the FDIC rules and regulations and adopting of the 
amendment to parts 333 and 303 proposed herein, all State nonmember 
banks and State savings associations seeking consent to exercise trust 
powers not previously granted by its chartering authority will be 
required to comply with FDIC rules governing applications for consent 
to exercise trust powers.

Alternatives to Credit Ratings With Respect to Permissible Activities 
for Foreign Branches of Insured State Nonmember Banks and Pledge of 
Assets by Insured Domestic Branches of Foreign Banks (3064-AE36)

    The FDIC sought public comment on a proposed rule to amend its 
international banking regulations (Part 347) consistent with section 
939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(Dodd-Frank Act) and the FDIC's authority under section 5(c) of the 
Federal Deposit Insurance Act. Section 939A directs each Federal agency 
to review and modify regulations that reference credit ratings. The 
rule would amend the provisions of subparts A and B of part 347 that 
reference credit ratings. Subpart A, which sets forth the FDIC's 
requirements for insured State nonmember banks that operate foreign 
branches, would be amended to replace references to credit ratings in 
the definition of ``investment grade'' with a standard of 
creditworthiness that has been adopted in other Federal regulations 
that conform with section 939A. Subpart B would be amended to revise 
the FDIC's asset pledge requirement for insured U.S. branches of 
foreign banks. The eligibility criteria for the types of assets that 
foreign banks may pledge would be amended by replacing the references 
to credit ratings with the revised definition of investment grade. The 
rule would apply this investment grade standard to each type of 
pledgeable asset, establish a liquidity requirement for such assets, 
and subject them to a fair value discount. The proposed rule would also 
introduce cash as a new asset type that foreign banks may pledge under 
subpart B and create a separate asset category expressly for debt 
securities issued by government sponsored enterprises.

Covered Broker-Dealer Provisions Under Title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (3064-AE39)

    The Federal Deposit Insurance Corporation and the Securities and 
Exchange Commission, in accordance with section 205(h) of the Dodd-
Frank Wall Street Reform and Consumer Protection Act, jointly proposed 
a rule to implement provisions applicable to the orderly liquidation of 
covered brokers and dealers under title II of the Dodd-Frank Act.

Completed Actions

Regulatory Capital Rules, Liquidity Coverage Ratio: Revisions to the 
Definition of Qualifying Master Netting Agreement and Related 
Definitions (3064-AE30)

    The FDIC is adopting a final rule that amends the definition of 
qualifying master netting agreement under the regulatory capital rules 
and the liquidity coverage ratio rule. In this final rule, the FDIC 
also is amending the definitions of collateral agreement, eligible 
margin loan, and repo-style transaction under the regulatory capital 
rules. These amendments are designed to ensure that the regulatory 
capital and liquidity treatment of certain financial contracts 
generally would not be affected by implementation of special resolution 
regimes in non-U.S. jurisdictions that are substantially similar to the 
U.S. resolution framework or by changes to the International Swaps and 
Derivative Association Master Agreement that provide for contractual 
submission to such regimes. The Office of the Comptroller of the 
Currency and the Board of Governors of the Federal Reserve System 
issued in December 2014, a joint interim final rule that is 
substantially identical to this final rule.

Recordkeeping for Timely Deposit Insurance Determination (3064-AE33)

    The FDIC is adopting a final rule to facilitate prompt payment of 
FDIC-insured deposits when large insured depository institutions fail. 
The final rule requires each insured depository institution that has 
two million or more deposit accounts to (1) Configure its information 
technology system to be capable of calculating the insured and 
uninsured amount in each deposit account by ownership right and 
capacity, which would be used by the FDIC to make deposit insurance 
determinations in the event of the institution's failure, and (2) 
maintain complete and accurate information needed by the FDIC to 
determine deposit insurance coverage with respect to each deposit 
account, except as otherwise provided.

Expanded Examination Cycle for Certain Small Insured Depository 
Institutions and U.S. Branches and Agencies of Foreign Banks (3064-
AE42)

    The Office of the Comptroller of the Currency, the Federal Reserve 
System, and the Federal Deposit Insurance Corporation (collectively, 
the Agencies) are jointly adopting as final and without change the 
agencies' interim final rules published in the Federal Register on 
February 29, 2016, that implemented section 83001 of the Fixing 
America's Surface Transportation Act (FAST Act). Section 83001 of the 
FAST Act permits the agencies to conduct a full-scope, onsite 
examination of qualifying insured depository institutions with less 
than $1 billion in total assets no less than once during each 18-month 
period. Prior to enactment of the FAST Act, only qualifying insured 
depository institutions with less than $500 million in total assets 
were eligible for an 18-month on-site examination cycle. The final 
rules, like the interim final rules, generally allow well capitalized 
and well managed institutions with less than $1 billion in total assets 
to benefit from the extended 18-month examination schedule. In 
addition, the final rules adopt as final parallel changes to the 
agencies' regulations governing the onsite examination cycle for U.S. 
branches and agencies of foreign banks, consistent with the 
International Banking Act of 1978. Finally, through this rulemaking, 
the FDIC has integrated its regulations regarding the frequency of 
safety and soundness examinations for State nonmember banks and State 
savings associations.

* Guidelines Establishing Standards for Corporate Governance and Risk 
Management for Covered Institutions With Average Total Consolidated 
Assets of $10 Billion or More (3064-AE48)

    To improve corporate governance and risk management at insured 
State banks, State savings associations, and insured State branches of 
foreign banks that have average total consolidated assets of $10 
billion or more, the FDIC is proposing to issue new corporate 
governance and risk management guidelines under its safety and 
soundness authority provided by section 39 of the Federal Deposit 
Insurance Act. The proposed Guidelines

[[Page 40442]]

would be enforceable under section 39. The FDIC also proposes to amend 
parts 308 and 364 of its regulations to implement the proposed 
Guidelines.

* Rules of Practice and Procedure (3064-AE52)

    The Federal Deposit Insurance Corporation is adjusting the maximum 
amount of each civil money penalty within its jurisdiction to account 
for inflation. This action is required by the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015. The FDIC is also 
amending its rules of practice and procedure under 12 CFR part 308 to 
cross-reference the annual adjustments that will be published in the 
Federal Register and to correct a technical error from the previous 
inflation-adjustment rulemaking.

* Disclosure and Reporting of CRA-Related Agreements (3064-AE55)

    The Office of the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, and the Federal Deposit 
Insurance Corporation (collectively, the Agencies) are inviting comment 
on a notice of proposed rulemaking that would amend the Agencies' rules 
on disclosure and reporting of Community Reinvestment Act-related 
agreements to remove the quarterly reporting requirement and an 
obsolete provision.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.

       Federal Deposit Insurance Corporation--Proposed Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
374.......................  12 CFR 324 Regulatory              3064-AE59
                             Capital Rules:
                             Simplification of
                             Generally Applicable
                             Rules.
------------------------------------------------------------------------

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)

Proposed Rule Stage

374.  Regulatory Capital Rules: Simplification of Generally 
Applicable Rules

    Legal Authority: 12 U.S.C. 1819(a)(Tenth); 12 U.S.C. 1831o; 12 
U.S.C. 3907; 12 U.S.C. 5371
    Abstract: The OCC, Board, and FDIC (the Agencies) seek comment on a 
joint proposed rule to revise the generally applicable capital rules 
with the goal of meaningfully reducing regulatory burden on community 
banking organizations while at the same time maintaining safety and 
soundness and the quality and quantity of regulatory capital in the 
banking system. The proposal includes (1) Replacing the framework's 
complex treatment of high volatility commercial real estate (HVCRE) 
exposures with a more straightforward treatment for most acquisition, 
development, or construction (ADC) loans; (2) simplifying the current 
regulatory capital treatment for mortgage servicing assets (MSAs), 
timing difference deferred tax assets (DTAs), and holdings of 
regulatory capital instruments issued by financial institutions; and 
(3) simplifying the current limitations on minority interests in 
regulatory capital.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   09/00/17  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Bobby R. Bean, Associate Director, Federal Deposit 
Insurance Corporation, 550 17th Street NW., Washington, DC 20429, 
Phone: 202 898-3575, Email: [email protected].
    Ryan Billingsley, Chief, Capital Policy Section, Federal Deposit 
Insurance Corporation, 550 17th Street NW., Washington, DC 20429, 
Phone: 202 898-3797, Email: [email protected].
    Benedetto Bosco, Chief, Capital Policy Section, Federal Deposit 
Insurance Corporation, 550 17th Street NW., Washington, DC 20459, 
Phone: 202 898-6853, Email: [email protected].
    Michael Phillips, Counsel, Federal Deposit Insurance Corporation, 
550 17th Street NW., Washington, DC 20429, Phone: 202 898-3581, Email: 
[email protected].
    Rachel J. Ackmann, Senior Attorney, Federal Deposit Insurance 
Corporation, 550 17th Street NW., Washington, DC 20429, Phone: 202 898-
6858, Email: [email protected].
    Catherine S. Wood, Counsel, Federal Deposit Insurance Corporation, 
550 17th Street NW., Washington, DC 20459, Phone: 202 898-3788, Email: 
[email protected].
    RIN: 3064-AE59

[FR Doc. 2017-17016 Filed 8-23-17; 8:45 am]
 BILLING CODE 6714-01-P



                                                                                                          Vol. 82                           Thursday,
                                                                                                          No. 163                           August 24, 2017




                                                                                                          Part XXV


                                                                                                          Federal Deposit Insurance Corporation
                                                                                                          Semiannual Regulatory Agenda
mstockstill on DSK30JT082PROD with PROPOSAL25




                                                VerDate Sep<11>2014   18:31 Aug 23, 2017   Jkt 241001   PO 00000   Frm 00001   Fmt 4717   Sfmt 4717   E:\FR\FM\24AUP25.SGM   24AUP25


                                                     40438                 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda

                                                     FEDERAL DEPOSIT INSURANCE                               * Real Estate Appraisals (3064–AE56)                  * Community Reinvestment Act
                                                     CORPORATION                                                                                                   Regulations (3064–AE58)
                                                                                                                The OCC, Board, FDIC, and NCUA
                                                                                                             (collectively, the Agencies) are seeking                The Office of the Comptroller of the
                                                     12 CFR Ch. III
                                                                                                             comment on a proposed rule to amend                   Currency, Board of Governors of the
                                                     Semiannual Agenda of Regulations                        the agencies’ regulations regarding                   Federal Reserve System, and the Federal
                                                                                                             appraisals of real estate, adopted                    Deposit Insurance Corporation propose
                                                     AGENCY: Federal Deposit Insurance                       pursuant to title XI of the Financial                 (1) To amend their regulations
                                                     Corporation.                                            Institutions Reform, Recovery, and                    implementing the Community
                                                     ACTION:   Semiannual regulatory agenda.                 Enforcement Act of 1989 (Title XI). Title             Reinvestment Act to update the existing
                                                                                                             XI requires the agencies to adopt                     definitions of home mortgage loan and
                                                     SUMMARY:   The Federal Deposit                          regulations regarding the performance of              consumer loan, related cross references,
                                                     Insurance Corporation (FDIC) is hereby                  appraisals used in connection with                    and the public file content requirements
                                                     publishing items for the Spring 2017                    federally related transactions (Title XI              to reflect recent revisions made by the
                                                     Unified Agenda of Federal Regulatory                    appraisals) within the jurisdiction of                Consumer Financial Protection Bureau
                                                     and Deregulatory Actions. The agenda                                                                          to Regulation C, which implements the
                                                                                                             each agency. As discussed below, the
                                                     contains information about FDIC’s                                                                             Home Mortgage Disclosure Act, and (2)
                                                                                                             agencies received comments requesting
                                                     current and projected rulemakings,                                                                            to remove obsolete references to the
                                                                                                             that the agencies require title XI
                                                     existing regulations under review, and                                                                        Neighborhood Stabilization Program.
                                                                                                             appraisals for fewer transactions as part
                                                     completed rulemakings.                                  of a regulatory review process mandated               Regulatory Capital Rules: Simplification
                                                     FOR FURTHER INFORMATION CONTACT:                        by the Economic Growth and Regulatory                 of Generally Applicable Rules (3064–
                                                     Robert E. Feldman, Executive Secretary,                 Paperwork Reduction Act. The                          AE59)
                                                     Federal Deposit Insurance Corporation,                  proposed amendments would increase                       The OCC, Board, and FDIC (the
                                                     550 17th Street NW., Washington, DC                     the threshold level at or below which                 Agencies) seek comment on a joint
                                                     20429.                                                  title XI appraisals are not required for              proposed rule to revise the generally
                                                                                                             commercial real estate loans to                       applicable capital rules with the goal of
                                                     SUPPLEMENTARY INFORMATION:     Twice                    $400,000, as defined in this regulation.
                                                     each year, the FDIC publishes an agenda                                                                       meaningfully reducing regulatory
                                                                                                             For commercial real estate loans below                burden on community banking
                                                     of regulations to inform the public of its              the threshold, the amended rule would
                                                     regulatory actions and to enhance                                                                             organizations while at the same time
                                                                                                             require institutions to obtain an                     maintaining safety and soundness and
                                                     public participation in the rulemaking                  evaluation of the real property collateral
                                                     process. Publication of the agenda is in                                                                      the quality and quantity of regulatory
                                                                                                             consistent with safe and sound banking                capital in the banking system. The
                                                     accordance with the Regulatory                          practices, if the institution does not
                                                     Flexibility Act (5 U.S.C. 601 et seq.).                                                                       proposal includes (1) Replacing the
                                                                                                             obtain a title XI appraisal. The agencies             framework’s complex treatment of high
                                                     The FDIC amends its regulations under                   also propose to amend their appraisal
                                                     the general rulemaking authority                                                                              volatility commercial real estate
                                                                                                             regulations to require that appraisals for            (HVCRE) exposures with a more
                                                     prescribed in section 9 of the Federal                  federally related transactions are subject
                                                     Deposit Insurance Act (12 U.S.C. 1819)                                                                        straightforward treatment for most
                                                                                                             to appropriate review for compliance                  acquisition, development, or
                                                     and under specific authority granted by                 with the Uniform Standards of
                                                     the Act and other statutes.                                                                                   construction (ADC) loans; (2)
                                                                                                             Professional Appraisal Practice, as                   simplifying the current regulatory
                                                     Proposed Rule Stage                                     required by an amendment to title XI                  capital treatment for mortgage servicing
                                                                                                             included in section 1473(e) of the Dodd-              assets (MSAs), timing difference
                                                     Enhanced Cyber Risk Management                          Frank Wall Street Reform and Consumer
                                                     Standards (3064–AE45)                                                                                         deferred tax assets (DTAs), and holdings
                                                                                                             Protection Act.                                       of regulatory capital instruments issued
                                                        On October 26, 2016, the Board of                    * Management Official Interlocks (3064–               by financial institutions; and (3)
                                                     Governors of the Federal Reserve                        AE57)                                                 simplifying the current limitations on
                                                     System, the Office of the Comptroller of                                                                      minority interests in regulatory capital.
                                                     the Currency, and the Federal Deposit                     The OCC, Board, and the FDIC are
                                                     Insurance Corporation published in the                  seeking comment on a joint proposed                   * Reporting and Recordkeeping
                                                     Federal Register an advanced notice of                  rule to revise their respective                       Requirements for Covered Trading
                                                     proposed rulemaking (ANPRM)                             regulations that implement the                        Activities (3064–AE60)
                                                     regarding enhanced cyber risk                           Depository Institution Management                       The OCC, Board, FDIC, CFTC, and
                                                     management standards for large and                      Interlocks Act (DIMIA). The proposed                  SEC are requesting comment on a
                                                     interconnected entities under their                     rule would adjust asset thresholds for                proposed rule that would modify the
                                                     supervision and those entities’ service                 the DIMIA major asset prohibition,                    reporting and recordkeeping
                                                     providers. The ANPRM addresses five                     which prohibits management officials                  requirements for covered trading
                                                     categories of cyber standards: Cyber risk               for depository institutions with assets in            activities under appendix A of the final
                                                     governance; cyber risk management;                      excess of specified levels from engaging              rule implementing section 13 of the
                                                     internal dependency management;                         in management interlocks (an                          Bank Holding Company Act of 1956,
                                                     external dependency management; and                     individual may not serve as an official               which was added by section 619 of the
mstockstill on DSK30JT082PROD with PROPOSAL25




                                                     incident response, cyber resilience, and                of two unaffiliated depository                        Dodd-Frank Wall Street Reform and
                                                     situational awareness. Due to the range                 institutions with assets in excess of the             Consumer Protection Act. The Agencies
                                                     and complexity of the issues addressed                  specified levels). The levels are                     adopted a final rule implementing
                                                     in the ANPRM the public comment                         currently set at $2.5 billion and $1.5                section 13 that became effective on
                                                     period was extended until February 17,                  billion. Based on inflation or market                 April 1, 2014. In appendix A of the final
                                                     2017. This action allowed interested                    changes, current inflation adjusted                   rule, the Agencies said they would
                                                     persons additional time to analyze the                  thresholds would be $3.6 billion and                  review the data collected and revise the
                                                     proposal and prepare their comments.                    $2.16 billion.                                        collection requirement as appropriate


                                                VerDate Sep<11>2014   18:31 Aug 23, 2017   Jkt 241001   PO 00000   Frm 00002   Fmt 4701   Sfmt 4702   E:\FR\FM\24AUP25.SGM   24AUP25


                                                                           Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda                                          40439

                                                     based on a review of the data collected                 billion and total on-balance sheet                    Currency on August 19, 2016, regarding
                                                     prior to September 30, 2015.                            foreign exposure of less than $10                     covered banks.
                                                                                                             billion. A bank holding company or
                                                     * Source of Strength (3064–AE61)                                                                              * Removal of Transferred OTS
                                                                                                             savings and loan holding company
                                                        The OCC, Board, and FDIC (the                        subject to the proposed NSFR                          Regulations Regarding Minimum
                                                     appropriate Federal banking agencies)                   requirement or modified NSFR                          Security Procedures Amendments
                                                     are developing a joint Notice of                        requirement would be required to                      (3064–AE47)
                                                     Proposed Rulemaking which will be                       publicly disclose the company’s NSFR                    The Federal Deposit Insurance
                                                     published in the Federal Register. The                  and the components of its NSFR each                   Corporation proposed to rescind and
                                                     rule, when finalized, will implement                    calendar quarter.                                     remove a part from the Code of Federal
                                                     section 616(d) of the Dodd-Frank Wall
                                                                                                             * Restrictions on Qualified Financial                 Regulations entitled Security
                                                     Street Reform and Consumer Protection
                                                                                                             Contracts of Certain FDIC-Supervised                  Procedures and to amend FDIC
                                                     Act (Dodd-Frank Act). That section of
                                                                                                             Institutions; Revisions to the Definition             regulations to make the removed Office
                                                     the Dodd-Frank Act requires the
                                                                                                             of Qualifying Master Netting Agreement                of Thrift Supervision regulations
                                                     appropriate Federal banking agencies to
                                                                                                             and Related Definitions (3064–AE46)                   applicable to State savings associations.
                                                     jointly issue final rules that ensure that
                                                     parent companies of subsidiary insured                     The FDIC is proposing to add a new                 * Removal of Transferred OTS
                                                     depository institutions serve as a source               part 382 to its rules to improve the                  Regulations Regarding Consumer
                                                     of financial strength for such                          resolvability of systemically important               Protection in Sales of Insurance and
                                                     institutions.                                           U.S. banking organizations and                        Amendments to FDIC Consumer
                                                     Final Rule Stage                                        systemically important foreign banking                Protection in Sales of Insurance
                                                                                                             organizations and enhance the                         Regulation (3064–AE49)
                                                     Net Stable Funding Ratio: Liquidity Risk                resilience and the safety and soundness
                                                     Measurement Standards and Disclosure                    of certain state savings associations and               The Federal Deposit Insurance
                                                     Requirements (3064–AE44)                                state-chartered banks that are not                    Corporation (FDIC) proposed to rescind
                                                        The Office of the Comptroller of the                 members of the Federal Reserve System                 and remove from the Code of Federal
                                                     Currency, the Board of Governors of the                 (state non-member banks or SNMBs) for                 Regulations 12 CFR part 390, subpart I,
                                                     Federal Reserve System, and the Federal                 which the FDIC is the primary federal                 entitled Consumer Protection in Sales of
                                                     Deposit Insurance Corporation invited                   regulator (together, FSIs or FDIC-                    Insurance. This subpart was included in
                                                     comment on a proposed rule that would                   supervised institutions). Under this                  the regulations that were transferred to
                                                     implement a stable funding                              proposed rule, covered FSIs would be                  the FDIC from the Office of Thrift
                                                     requirement, the net stable funding ratio               required to ensure that covered                       Supervision on July 21, 2011, in
                                                     (NSFR), for large and internationally                   qualified financial contracts (QFCs) to               connection with the implementation of
                                                     active banking organizations. The                       which they are a party provide that any               applicable provisions of title III of the
                                                     proposed NSFR requirement is designed                   default rights and restrictions on the                Dodd-Frank Wall Street Reform and
                                                     to reduce the likelihood that disruptions               transfer of the QFCs are limited to the               Consumer Protection Act. The
                                                     to a banking organization’s regular                     same extent as they would be under the                requirements for State savings
                                                     sources of funding will compromise its                  Dodd-Frank Wall Street Reform and                     associations in part 390, subpart I are
                                                     liquidity position, as well as to promote               Consumer Protection Act and the                       substantively similar to the
                                                     improvements in the measurement and                     Federal Deposit Insurance Act. In                     requirements in the FDIC’s 12 CFR part
                                                     management of liquidity risk. The                       addition, covered FSIs would generally                343, which is also entitled Consumer
                                                     proposed rule would also amend certain                  be prohibited from being party to QFCs                Protection in Sales of Insurance and is
                                                     definitions in the liquidity coverage                   that would allow a QFC counterparty to                applicable for all insured depository
                                                     ratio rule that are also applicable to the              exercise default rights against the                   institutions (IDIs) for which the FDIC
                                                     NSFR. The proposed NSFR requirement                     covered FSI based on the entry into a                 has been designated the appropriate
                                                     would apply beginning on January 1,                     resolution proceeding under the Dodd-                 Federal banking agency.
                                                     2018, to bank holding companies,                        Frank Act, FDI Act, or any other                        The FDIC proposed to rescind in its
                                                     certain savings and loan holding                        resolution proceeding of an affiliate of              entirety part 390, subpart I and to
                                                     companies, and depository institutions                  the covered FSI.                                      modify the scope of part 343 to include
                                                     that, in each case, have $250 billion or                   The proposal would also amend the                  State savings associations and their
                                                     more in total consolidated assets or $10                definition of qualifying master netting               subsidiaries to conform to and reflect
                                                     billion or more in total on-balance sheet               agreement in the FDIC’s capital and                   the scope of the FDIC’s current
                                                     foreign exposure, and to their                          liquidity rules, and certain related terms            supervisory responsibilities as the
                                                     consolidated subsidiaries that are                      in the FDIC’s capital rules. These                    appropriate Federal banking agency.
                                                     depository institutions with $10 billion                proposed amendments are intended to                   The FDIC also proposed to define FDIC-
                                                     or more in total consolidated assets. In                ensure that the regulatory capital and                supervised insured depository
                                                     addition, the Board proposed a modified                 liquidity treatment of QFCs to which a                institution or institution and State
                                                     NSFR requirement for bank holding                       covered FSI is party would not be                     savings association. Finally, the FDIC
                                                     companies and certain savings and loan                  affected by the proposed restrictions on              proposed to transfer an anticoercion and
                                                     holding companies that, in each case,                   such QFCs. The requirements of this                   antitying provision from part 390,
mstockstill on DSK30JT082PROD with PROPOSAL25




                                                     have $50 billion or more, but less than                 proposed rule are substantively                       subpart I that is applicable to State
                                                     $250 billion, in total consolidated assets              identical to those contained in notice of             savings associations. Upon removal of
                                                     and less than $10 billion in total on-                  proposed rulemaking issued by the                     part 390, subpart I, the Consumer
                                                     balance sheet foreign exposure. Neither                 Board of Governors of the Federal                     Protection in Sales of Insurance,
                                                     the proposed NSFR requirement nor the                   Reserve System on May 3, 2016,                        regulations applicable for all IDIs for
                                                     proposed modified NSFR requirement                      regarding covered entities, and the                   which the FDIC has been designated the
                                                     would apply to banking organizations                    notice of proposed rulemaking issued by               appropriate Federal banking agency will
                                                     with consolidated assets of less than $50               the Office of the Comptroller of the                  be found at 12 CFR part 343.


                                                VerDate Sep<11>2014   18:31 Aug 23, 2017   Jkt 241001   PO 00000   Frm 00003   Fmt 4701   Sfmt 4702   E:\FR\FM\24AUP25.SGM   24AUP25


                                                     40440                 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda

                                                     * Loans in Areas Having Special Flood                   corrects inaccurate contact information               Treatment of Certain Collateralized Debt
                                                     Hazards—Private Flood Insurance                         and adjusts numbering and lettering of                Obligations Backed Primarily by Trust
                                                     (3064–AE50)                                             current provisions because of additions               Preferred Securities; Prohibitions and
                                                        The Office of the Comptroller of the                 to the regulations.                                   Restrictions on Certain Interests in
                                                     Currency, the Board of Governors of the                                                                       Hedge Funds and Private Equity Funds
                                                                                                             * Recordkeeping Requirements for                      (3064–AE11)
                                                     Federal Reserve System, the Federal                     Qualified Financial Contracts (3064–
                                                     Deposit Insurance Corporation, the                      AE54)                                                    The Office of the Comptroller of the
                                                     Farm Credit Administration, and the                                                                           Currency, the Federal Reserve Board,
                                                     National Credit Union Administration                       The FDIC proposes to amend its                     the Federal Deposit Insurance
                                                     have issued a new proposal to amend                     regulations regarding Recordkeeping                   Corporation, the U.S. Commodity
                                                     their regulations regarding loans in                    Requirements for Qualified Financial                  Futures Trading Commission, and the
                                                     areas having special flood hazards to                   Contracts (Part 371) which requires                   Securities Exchange Commission
                                                     implement the private flood insurance                   insured depository institutions (IDIs) in             (individually, an Agency, and
                                                     provisions of the Biggert-Waters Flood                  a troubled condition to keep records                  collectively, the Agencies) will be
                                                     Insurance Reform Act of 2012.                           relating to qualified financial contracts             adopting an interim final rule that
                                                     Specifically, the proposed rule would                   (QFCs) to which they are party. The                   would permit banking entities to retain
                                                     require regulated lending institutions to               proposed rule would (i) Simplify QFC                  investments in certain pooled
                                                     accept policies that meet the statutory                                                                       investment vehicles that invested their
                                                                                                             recordkeeping for large banks by
                                                     definition of private flood insurance in                                                                      offering proceeds primarily in trust
                                                                                                             aligning requirements with the rule of
                                                     the Biggert-Waters Act and permit                                                                             preferred or subordinated debt
                                                                                                             the US Treasury governing QFC
                                                     regulated lending institutions to accept                                                                      securities issued by community banking
                                                     flood insurance provided by private                     recordkeeping of certain non-bank                     organizations of the type grandfathered
                                                     insurers that does not meet the statutory               affiliates; (ii) require such large banks to          under section 171 of the Dodd-Frank
                                                     definition of private flood insurance on                keep QFC records of certain of their                  Wall Street Reform and Consumer
                                                     a discretionary basis, subject to certain               subsidiaries; (iii) for all other IDIs                Protection Act. The interim final rule is
                                                     restrictions.                                           subject to part 371, add and delete a                 a companion rule to the final rules
                                                                                                             limited number of data requirements                   adopted by the Agencies to implement
                                                     * Regulatory Capital Rules: To Rescind                  and make certain formatting changes                   section 13 of the Bank Holding
                                                     the FDIC’s Capital Rules That Are No                    with respect to the QFC recordkeeping                 Company Act of 1956, which was added
                                                     Longer Effective Following the                          requirements; (iv) provide additional                 by section 619 of the Dodd-Frank Act.
                                                     Implementation of Capital Rules                         time for certain IDIs in a troubled
                                                     Consistent With Basel III (3064–AE51)                                                                         Removal of Transferred Office of Thrift
                                                                                                             condition to comply with part 371; and
                                                        This final rule rescinds the capital                                                                       Supervision Regulations Regarding
                                                                                                             (v) include certain other changes,
                                                     regulations in part 325 and subparts Y                                                                        Lending and Investment and
                                                                                                             including changes relating to certain                 Amendments to FDIC Rules and
                                                     and Z of part 390 of the FDIC’s codified                extension procedures and clarifications
                                                     rules (the superseded capital rules) that                                                                     Regulations (3064–AE22)
                                                                                                             relating to the timing for creation of
                                                     were no longer effective following the                  daily records.                                           In this rulemaking, the Federal
                                                     January 1, 2015, implementation of the                                                                        Deposit Insurance Corporation (FDIC)
                                                     capital rules consistent with the Basel                 Long-Term Actions                                     will be proposing to rescind and remove
                                                     III initiatives. The final rule also makes              Incentive-Based Compensation                          from the Code of Federal Regulations 12
                                                     conforming changes to sections in the                                                                         CFR part 390, subpart P, entitled
                                                                                                             Arrangements (3064–AD86)
                                                     FDIC’s codified rules that refer to the                                                                       Lending and Investment (part 390,
                                                     superseded capital rules. The FDIC has                    The OCC, Board, FDIC, FHFA, NCUA,                   subpart P). This subpart was included in
                                                     concluded that good cause exists to                     and SEC (the Agencies) sought comment                 the regulations that were transferred to
                                                     publish this rule as final without a                    on a joint proposed rule to revise the                the FDIC from the Office of Thrift
                                                     period of notice and comment and with                   proposed rule the Agencies published in               Supervision on July 21, 2011, in
                                                     an effective date as of the date of its                 the Federal Register on April 14, 2011,               connection with the implementation of
                                                     publication in the Federal Register                     and to implement section 956 of the                   applicable provisions of title III of the
                                                     because this rule rescinds the                          Dodd-Frank Wall Street Reform and                     Dodd-Frank Wall Street Reform and
                                                     superseded capital rules and other                                                                            Consumer Protection Act. Upon removal
                                                                                                             Consumer Protection Act. Section 956
                                                     sections of the FDIC’s codified rules that                                                                    of part 390, subpart P, all insured
                                                                                                             generally requires that the Agencies
                                                     refer to the superseded capital rules and                                                                     depository institutions for which the
                                                     imposes no new requirement on FDIC-                     jointly issue regulations or guidelines:              FDIC is the appropriate Federal banking
                                                     supervised institutions.                                (1) Prohibiting incentive-based payment               agency will follow the safety and
                                                                                                             arrangements that the Agencies                        soundness standards contained in 12
                                                     * Revision of the FDIC’s Freedom of                     determine encourage inappropriate risks               CFR part 364 of the FDIC’s Rules and
                                                     Information Act Regulations (3064–                      by certain financial institutions by                  Regulations and the real-estate lending
                                                     AE53)                                                   providing excessive compensation or                   standards found in 12 CFR part 365 of
                                                       This rule amends the Federal Deposit                  that could lead to material financial                 the FDIC’s Rules.
                                                     Insurance Corporation’s regulations                     loss; and (2) requiring those financial
mstockstill on DSK30JT082PROD with PROPOSAL25




                                                     under the Freedom of Information Act                    institutions to disclose information                  Transferred Office of Thrift Supervision
                                                     (FOIA) to incorporate certain changes                   concerning incentive-based                            Regulations Regarding Fiduciary Powers
                                                     made to the FOIA by the FOIA                                                                                  of State Savings Associations (3064–
                                                                                                             compensation arrangements to the
                                                     Improvement Act of 2016. In addition,                                                                         AE23)
                                                                                                             appropriate Federal regulator.
                                                     this rule amends certain provisions to                                                                          The Federal Deposit Insurance
                                                     reflect changes brought about by prior                                                                        Corporation (FDIC) will be proposing to
                                                     amendments to the FOIA that had been                                                                          rescind and remove from the Code of
                                                     incorporated into Agency practice and                                                                         Federal Regulations 12 CFR part 390


                                                VerDate Sep<11>2014   18:31 Aug 23, 2017   Jkt 241001   PO 00000   Frm 00004   Fmt 4701   Sfmt 4702   E:\FR\FM\24AUP25.SGM   24AUP25


                                                                           Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda                                          40441

                                                     subpart J, entitled Fiduciary Powers of                 introduce cash as a new asset type that               FDIC to make deposit insurance
                                                     State Savings Associations and all                      foreign banks may pledge under subpart                determinations in the event of the
                                                     references thereto, and amend certain                   B and create a separate asset category                institution’s failure, and (2) maintain
                                                     sections of 12 CFR parts 333 and 303                    expressly for debt securities issued by               complete and accurate information
                                                     regarding consent to exercise trust                     government sponsored enterprises.                     needed by the FDIC to determine
                                                     powers to reflect their applicability to                                                                      deposit insurance coverage with respect
                                                     State savings associations. Part 390                    Covered Broker-Dealer Provisions Under                to each deposit account, except as
                                                     subpart J was included in the                           Title II of the Dodd-Frank Wall Street                otherwise provided.
                                                     regulations that were transferred to the                Reform and Consumer Protection Act
                                                                                                             (3064–AE39)                                           Expanded Examination Cycle for
                                                     FDIC from the Office of Thrift
                                                                                                                                                                   Certain Small Insured Depository
                                                     Supervision on July 21, 2011, in                          The Federal Deposit Insurance
                                                                                                                                                                   Institutions and U.S. Branches and
                                                     connection with the implementation of                   Corporation and the Securities and
                                                                                                                                                                   Agencies of Foreign Banks (3064–AE42)
                                                     applicable provisions of title III of the               Exchange Commission, in accordance
                                                     Dodd-Frank Wall Street Reform and                       with section 205(h) of the Dodd-Frank                    The Office of the Comptroller of the
                                                     Consumer Protection Act. Upon removal                   Wall Street Reform and Consumer                       Currency, the Federal Reserve System,
                                                     of part 390 subpart J from the FDIC rules               Protection Act, jointly proposed a rule               and the Federal Deposit Insurance
                                                     and regulations and adopting of the                     to implement provisions applicable to                 Corporation (collectively, the Agencies)
                                                     amendment to parts 333 and 303                          the orderly liquidation of covered                    are jointly adopting as final and without
                                                     proposed herein, all State nonmember                    brokers and dealers under title II of the             change the agencies’ interim final rules
                                                     banks and State savings associations                    Dodd-Frank Act.                                       published in the Federal Register on
                                                     seeking consent to exercise trust powers                                                                      February 29, 2016, that implemented
                                                     not previously granted by its chartering                Completed Actions                                     section 83001 of the Fixing America’s
                                                     authority will be required to comply                    Regulatory Capital Rules, Liquidity                   Surface Transportation Act (FAST Act).
                                                     with FDIC rules governing applications                  Coverage Ratio: Revisions to the                      Section 83001 of the FAST Act permits
                                                     for consent to exercise trust powers.                   Definition of Qualifying Master Netting               the agencies to conduct a full-scope,
                                                                                                             Agreement and Related Definitions                     onsite examination of qualifying insured
                                                     Alternatives to Credit Ratings With                                                                           depository institutions with less than $1
                                                     Respect to Permissible Activities for                   (3064–AE30)
                                                                                                                                                                   billion in total assets no less than once
                                                     Foreign Branches of Insured State                          The FDIC is adopting a final rule that             during each 18-month period. Prior to
                                                     Nonmember Banks and Pledge of Assets                    amends the definition of qualifying                   enactment of the FAST Act, only
                                                     by Insured Domestic Branches of                         master netting agreement under the                    qualifying insured depository
                                                     Foreign Banks (3064–AE36)                               regulatory capital rules and the liquidity            institutions with less than $500 million
                                                        The FDIC sought public comment on                    coverage ratio rule. In this final rule, the          in total assets were eligible for an 18-
                                                     a proposed rule to amend its                            FDIC also is amending the definitions of              month on-site examination cycle. The
                                                     international banking regulations (Part                 collateral agreement, eligible margin                 final rules, like the interim final rules,
                                                     347) consistent with section 939A of the                loan, and repo-style transaction under                generally allow well capitalized and
                                                     Dodd-Frank Wall Street Reform and                       the regulatory capital rules. These                   well managed institutions with less than
                                                     Consumer Protection Act (Dodd-Frank                     amendments are designed to ensure that                $1 billion in total assets to benefit from
                                                     Act) and the FDIC’s authority under                     the regulatory capital and liquidity                  the extended 18-month examination
                                                     section 5(c) of the Federal Deposit                     treatment of certain financial contracts              schedule. In addition, the final rules
                                                     Insurance Act. Section 939A directs                     generally would not be affected by                    adopt as final parallel changes to the
                                                     each Federal agency to review and                       implementation of special resolution                  agencies’ regulations governing the
                                                     modify regulations that reference credit                regimes in non-U.S. jurisdictions that                onsite examination cycle for U.S.
                                                     ratings. The rule would amend the                       are substantially similar to the U.S.                 branches and agencies of foreign banks,
                                                     provisions of subparts A and B of part                  resolution framework or by changes to                 consistent with the International
                                                     347 that reference credit ratings.                      the International Swaps and Derivative                Banking Act of 1978. Finally, through
                                                     Subpart A, which sets forth the FDIC’s                  Association Master Agreement that                     this rulemaking, the FDIC has integrated
                                                     requirements for insured State                          provide for contractual submission to                 its regulations regarding the frequency
                                                     nonmember banks that operate foreign                    such regimes. The Office of the                       of safety and soundness examinations
                                                     branches, would be amended to replace                   Comptroller of the Currency and the                   for State nonmember banks and State
                                                     references to credit ratings in the                     Board of Governors of the Federal                     savings associations.
                                                     definition of ‘‘investment grade’’ with a               Reserve System issued in December
                                                     standard of creditworthiness that has                   2014, a joint interim final rule that is              * Guidelines Establishing Standards for
                                                     been adopted in other Federal                           substantially identical to this final rule.           Corporate Governance and Risk
                                                     regulations that conform with section                                                                         Management for Covered Institutions
                                                                                                             Recordkeeping for Timely Deposit                      With Average Total Consolidated Assets
                                                     939A. Subpart B would be amended to
                                                                                                             Insurance Determination (3064–AE33)                   of $10 Billion or More (3064–AE48)
                                                     revise the FDIC’s asset pledge
                                                     requirement for insured U.S. branches                     The FDIC is adopting a final rule to                   To improve corporate governance and
                                                     of foreign banks. The eligibility criteria              facilitate prompt payment of FDIC-                    risk management at insured State banks,
                                                     for the types of assets that foreign banks              insured deposits when large insured                   State savings associations, and insured
                                                     may pledge would be amended by                          depository institutions fail. The final               State branches of foreign banks that
mstockstill on DSK30JT082PROD with PROPOSAL25




                                                     replacing the references to credit ratings              rule requires each insured depository                 have average total consolidated assets of
                                                     with the revised definition of                          institution that has two million or more              $10 billion or more, the FDIC is
                                                     investment grade. The rule would apply                  deposit accounts to (1) Configure its                 proposing to issue new corporate
                                                     this investment grade standard to each                  information technology system to be                   governance and risk management
                                                     type of pledgeable asset, establish a                   capable of calculating the insured and                guidelines under its safety and
                                                     liquidity requirement for such assets,                  uninsured amount in each deposit                      soundness authority provided by
                                                     and subject them to a fair value                        account by ownership right and                        section 39 of the Federal Deposit
                                                     discount. The proposed rule would also                  capacity, which would be used by the                  Insurance Act. The proposed Guidelines


                                                VerDate Sep<11>2014   18:31 Aug 23, 2017   Jkt 241001   PO 00000   Frm 00005   Fmt 4701   Sfmt 4702   E:\FR\FM\24AUP25.SGM   24AUP25


                                                     40442                      Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda

                                                     would be enforceable under section 39.                      2015. The FDIC is also amending its                     Deposit Insurance Corporation
                                                     The FDIC also proposes to amend parts                       rules of practice and procedure under                   (collectively, the Agencies) are inviting
                                                     308 and 364 of its regulations to                           12 CFR part 308 to cross-reference the                  comment on a notice of proposed
                                                     implement the proposed Guidelines.                          annual adjustments that will be                         rulemaking that would amend the
                                                                                                                 published in the Federal Register and to                Agencies’ rules on disclosure and
                                                     * Rules of Practice and Procedure
                                                                                                                 correct a technical error from the                      reporting of Community Reinvestment
                                                     (3064–AE52)
                                                                                                                 previous inflation-adjustment                           Act-related agreements to remove the
                                                       The Federal Deposit Insurance                             rulemaking.                                             quarterly reporting requirement and an
                                                     Corporation is adjusting the maximum
                                                     amount of each civil money penalty                          * Disclosure and Reporting of CRA-                      obsolete provision.
                                                     within its jurisdiction to account for                      Related Agreements (3064–AE55)                          Federal Deposit Insurance Corporation.
                                                     inflation. This action is required by the                     The Office of the Comptroller of the                  Robert E. Feldman,
                                                     Federal Civil Penalties Inflation                           Currency, the Board of Governors of the                 Executive Secretary.
                                                     Adjustment Act Improvements Act of                          Federal Reserve System, and the Federal
                                                                                           FEDERAL DEPOSIT INSURANCE CORPORATION—PROPOSED RULE STAGE
                                                                                                                                                                                                           Regulation
                                                       Sequence No.                                                                        Title                                                          Identifier No.

                                                     374 ....................   12 CFR 324 Regulatory Capital Rules: Simplification of Generally Applicable Rules ....................................       3064–AE59



                                                     FEDERAL DEPOSIT INSURANCE                                   acquisition, development, or                            Washington, DC 20429, Phone: 202 898–
                                                     CORPORATION (FDIC)                                          construction (ADC) loans; (2)                           3797, Email: rbillingsley@fdic.gov.
                                                                                                                 simplifying the current regulatory                        Benedetto Bosco, Chief, Capital Policy
                                                     Proposed Rule Stage
                                                                                                                 capital treatment for mortgage servicing                Section, Federal Deposit Insurance
                                                     374. • Regulatory Capital Rules:                            assets (MSAs), timing difference                        Corporation, 550 17th Street NW.,
                                                     Simplification of Generally Applicable                      deferred tax assets (DTAs), and holdings                Washington, DC 20459, Phone: 202 898–
                                                     Rules                                                       of regulatory capital instruments issued                6853, Email: bbosco@fdic.gov.
                                                        Legal Authority: 12 U.S.C.                               by financial institutions; and (3)                        Michael Phillips, Counsel, Federal
                                                     1819(a)(Tenth); 12 U.S.C. 1831o; 12                         simplifying the current limitations on                  Deposit Insurance Corporation, 550 17th
                                                     U.S.C. 3907; 12 U.S.C. 5371                                 minority interests in regulatory capital.               Street NW., Washington, DC 20429,
                                                        Abstract: The OCC, Board, and FDIC                         Timetable:                                            Phone: 202 898–3581, Email:
                                                     (the Agencies) seek comment on a joint                                                                              mphillips@fdic.gov.
                                                                                                                        Action                 Date         FR Cite        Rachel J. Ackmann, Senior Attorney,
                                                     proposed rule to revise the generally
                                                     applicable capital rules with the goal of                                                                           Federal Deposit Insurance Corporation,
                                                                                                                 NPRM ..................    09/00/17                     550 17th Street NW., Washington, DC
                                                     meaningfully reducing regulatory
                                                     burden on community banking                                                                                         20429, Phone: 202 898–6858, Email:
                                                                                                                   Regulatory Flexibility Analysis                       rackmann@fdic.gov.
                                                     organizations while at the same time                        Required: Yes.
                                                     maintaining safety and soundness and                                                                                  Catherine S. Wood, Counsel, Federal
                                                                                                                   Agency Contact: Bobby R. Bean,                        Deposit Insurance Corporation, 550 17th
                                                     the quality and quantity of regulatory                      Associate Director, Federal Deposit
                                                     capital in the banking system. The                                                                                  Street NW., Washington, DC 20459,
                                                                                                                 Insurance Corporation, 550 17th Street                  Phone: 202 898–3788, Email: cawood@
                                                     proposal includes (1) Replacing the                         NW., Washington, DC 20429, Phone:
                                                     framework’s complex treatment of high                                                                               fdic.gov.
                                                                                                                 202 898–3575, Email: bbean@fdic.gov.                      RIN: 3064–AE59
                                                     volatility commercial real estate                             Ryan Billingsley, Chief, Capital Policy
                                                     (HVCRE) exposures with a more                                                                                       [FR Doc. 2017–17016 Filed 8–23–17; 8:45 am]
                                                                                                                 Section, Federal Deposit Insurance
                                                     straightforward treatment for most                          Corporation, 550 17th Street NW.,                       BILLING CODE 6714–01–P
mstockstill on DSK30JT082PROD with PROPOSAL25




                                                VerDate Sep<11>2014       18:31 Aug 23, 2017   Jkt 241001   PO 00000   Frm 00006    Fmt 4701    Sfmt 9990   E:\FR\FM\24AUP25.SGM   24AUP25



Document Created: 2018-10-24 12:36:31
Document Modified: 2018-10-24 12:36:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionUnknown Section
ActionSemiannual regulatory agenda.
ContactRobert E. Feldman, Executive Secretary, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429.
FR Citation82 FR 40437 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR