On June 12, the Treasury Department issued the first in a series of reports ordered by President Trump examining the U.S. financial regulatory system and detailing executive actions and regulatory changes that can be immediately undertaken to provide relief.
The 147-page report covers the depository system and includes the Trump administration’s views focusing on the operations of banks and credit unions, detailing areas including capital regulation and stress testing, the drafting of resolution plans known as living wills and changing the structure and reducing the powers of the CFPB. The report also reviews the Dodd-Frank financial oversight law and urges changes to rules implemented under Dodd-Frank by outlining what it calls core principles of financial regulation.
To read the report, click here.
Treasury seeks comments on regulatory reform
The Treasury Department on June 14 published a request for information inviting members of the public to submit views and recommendations for department regulations that can be eliminated, modified or streamlined to reduce regulatory burdens. The request is in furtherance of President Trump’s Executive Orders 13771 and 13777 directing agencies to eliminate two regulations for each new regulation issued, to limit costs for this fiscal year to zero, and to convene a regulatory reform task force.
Comments will be accepted through July 31.
The Federal Register notice is available by clicking here.
OCC issues FAQ on third-party relationships
The Office of the Comptroller of the Currency has issued frequently asked questions to supplement Bulletin 2013-29, “Third-Party Relationships: Risk Management Guidance,” issued Oct. 30, 2013.
The FAQs address several areas related to the guidance, including collaboration with other banks, engagement with fintech companies and entering a marketplace lending arrangement with nonbank entities.
To read the FAQs, click here.
FDIC adopts guidance on model risk management
On June 7, the Federal Deposit Insurance Corporation adopted the Supervisory Guidance on Model Risk Management previously issued by the Federal Reserve Board and the Office of the Comptroller of the Currency, with technical conforming changes, making the guidance applicable to certain FDIC-supervised institutions. The guidance addresses supervisory expectations for model risk management, including: model development, implementation, and use; model validation; and governance, policies, and controls. The FDIC is adopting the guidance to facilitate consistent model risk-management expectations across the banking industry and its associated agencies.
A summary of the guidance letter can be viewed by clicking here.
Credit unions
NCUA releases report on credit union performance
Federally insured credit unions across the country saw continued improvement in nearly every category during the first quarter of 2017, according to a report released June 12 by National Credit Union Administration.
Nationally, median loan growth in federally insured credit unions was 4.4% during the first quarter of 2017. Median asset growth was 3.9%; the median rate of growth in deposits and shares was 4.2%; and the median loans-to-shares ratio was 62%.
The NCUA Quarterly U.S. Map Review tracks performance indicators for federally insured credit unions in all 50 states and the District of Columbia. It also includes information on two important state-level economic indicators: unemployment rates and home price changes.
To read the full report, click here.
More compliance news
FinCEN seeks to modify Designation of Exempt Person report
The Financial Crimes Enforcement Network is seeking comments on a proposed update and renewal of the collection of information through its Designation of Exempt Person report. The report is used by banks and others to designate eligible customers as exempt from the requirement to report currency transactions of more than $10,000. The proposed minor changes would remove the obsolete reference to Document Control Number and to add a country field in Parts II and III of the report to accommodate reporting from U.S. territories.
Comments are due by Aug. 14. To read the Federal Register notice, click here.
CFPB plans debt collection disclosure survey
On June 5, the Consumer Financial Protection Bureau published a notice and request for comment in the Federal Register on a proposed Internet survey of 8,000 individuals as part of the bureau’s research on debt collection disclosures. The survey would explore consumer comprehension and decision making in response to debt collection disclosure forms.
Comments will be accepted through Aug. 4.
The Federal Register notice is available by clicking here.
Federal Reserve Financial Services posts update on Same Day ACH reporting
Federal Reserve Financial Services posted an update on the implementation of Same Day ACH Phase 2 scheduled for Sept. 15. The Phase 2 implementation will mean debit entries received before the same day submittal deadlines with an invalid, stale or current date in the effective entry date field will settle as same-day transactions, provided that other requirements are also met.
To read more about the update, click here.
FTC releases annual report on enforcement activities
On May 30, the Federal Trade Commission provided its 2016 Annual Financial Acts Enforcement Report to the Consumer Financial Protection Bureau on enforcement and other activities related to Regulation Z (Truth in Lending Act), Regulation M (Consumer Leasing Act), and Regulation E (Electronic Fund Transfer Act).
To learn more, click here.
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