#2020-39, November 13, 2020

Regulators Testify Before Senate Banking Committee; Discuss Relief for Banks Participating in COVID-19 Programs

In testimony to the Senate Banking Committee this week, the federal banking regulators indicated that they are considering additional ways to provide temporary relief to banks approaching regulatory asset thresholds as a result of participation in COVID-19 relief programs.  Many of these thresholds impose additional compliance and examination requirements.

Federal Deposit Insurance Corporation (FDIC) Chairman Jelena McWilliams and Acting Comptroller of the Currency Brian Brooks both stated that the agencies are working on “a set of rules that would relieve for a period of time certain asset thresholds being tripped that would trigger heightened scrutiny and heightened compliance requirements at different levels.” Brooks also said he expects the relief to apply to banks with less than $10 billion in assets.

Chairman McWilliams noted that with smaller institutions doing a large share of PPP lending, it is “only appropriate that we look at these thresholds . . . and accommodate them.”  As we reported previously, the FDIC recently issued an interim final rule providing relief from auditing, internal control and audit committee requirements that would have resulted from the rapid inflow of assets and deposits due to the pandemic.

To read testimony from the hearing and view an archived webcast, click here.

Banks Asked to Participate in Fed Coin Task Force Survey

The Federal Reserve Coin Task Force is asking banks to respond to a survey collecting information regarding the current status of coins across the nation.  Bankers are asked to complete a brief seven-question survey about how their bank is handling the coin circulation slowdown.

To take the survey, click here.  Additional Coin Task Force resources can be found at www.getcoinmoving.org

FDIC Updates Applications for Opening or Relocating Branches

Earlier this week, the FDIC issued a final rule amending its application requirements for the establishment and relocation of branches and bank offices. Under the rule, these applications no longer require statements regarding compliance with the National Historic Preservation Act of 1966 and the National Environmental Policy Act of 1969.  These changes align the FDIC’s application process with other banking agencies.

To read the rule, click here.

Federal Reserve Hosting Fair Lending Webinar on December 8

On December 8 at 2:00 p.m., the Federal Reserve is hosting an interagency webinar on fair lending issues.  The webinar, which is part of the Fed’s consumer compliance series, will include representatives from eight federal agencies who will discuss a variety of fair lending topics, including recent agency actions and examples of credit discrimination in different contexts.  Participants will also have the opportunity to submit questions in advance for the panelists.

To register for the webinar, click here.