Federal Bank Regulatory Agencies Seek Further Comment on Interagency Effort to Reduce Regulatory Burden
Washington, D.C. – The Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System (Board), and the Office of the Comptroller of the Currency (OCC) today announced a joint request for comment on potential revisions to certain interagency regulations to reduce burden.
The agencies are seeking comment on proposed revisions to the following regulations:
- Interagency Questions and Answers Regarding the Interagency Guidance on the Allowance for Loan and Lease Losses (CECL) to provide additional clarity and flexibility to institutions in implementing CECL.
- Interagency Questions and Answers Regarding the Interagency Guidance on Enhancing Prudential Standards for Securitizations to provide more tailored guidance for certain residential and commercial mortgage securitizations.
- Interagency Guidance on Assessing and Managing Climate-Related Financial Risks to provide clarity and facilitate consistency in the application of the guidance.
- Interagency Guidance on Supervisory Considerations for Crypto-Asset Activities to provide more tailored guidance for banks and savings associations engaging in crypto-asset activities.
The agencies are seeking comment on specific provisions of these regulations that may be revised to reduce burden, including:
- Updating definitions and clarifying terminology.
- Streamlining reporting requirements.
- Providing additional flexibility in meeting regulatory requirements.
- Removing duplicative or unnecessary requirements.
The agencies are also seeking comment on the potential impact of any proposed revisions on safety and soundness, consumer protection, and financial stability.
The comment period for this request for comment will close on February 27, 2023.
“The agencies are committed to reducing regulatory burden while maintaining safety and soundness, consumer protection, and financial stability,” said FDIC Chairman Martin J. Gruenberg. “This request for comment is an opportunity for stakeholders to provide feedback on potential revisions to the regulations that could reduce burden while preserving the effectiveness of the regulatory framework.”
“The Board is committed to working with the FDIC and OCC to identify and address unnecessary regulatory burden,” said Board Chairman Jerome H. Powell. “This request for comment will help us to ensure that the regulations are tailored to the risks faced by institutions and are not overly burdensome.”
“The OCC is committed to reducing regulatory burden without sacrificing safety and soundness,” said Acting Comptroller of the Currency Michael J. Hsu. “This request for comment is an important step in our ongoing effort to modernize the regulatory framework and ensure that it is responsive to the needs of the institutions we supervise.”
Additional Resources
- Request for Comment on Potential Revisions to Interagency Regulations to Reduce Burden
- Interagency Bank Regulatory Agencies Release for Comment Tailored Regulatory Guidance for Certain Mortgage Securitizations
- Agencies Issue for Comment Guidance on Assessing and Managing Climate-Related Financial Risks
- Agencies Issue for Comment Supervisory Considerations for Crypto-Asset Activities
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