THIS WEEK: Fed nominations, OCC testimony, credit limits rule and more

Federal Reserve Board nominations, congressional testimony by the regulator of national banks, and central bank and credit union regulator board meetings are among the items making news in the week ahead for federal financial regulators.

Here’s a rundown of some of the events coming up:

Tuesday, June 12: The Senate Banking Committee holds an executive session (at 10 a.m.) to consider approval and transmission to the Senate of the nominations to the Federal Reserve Board of Richard Clarida and Michelle (“Miki”) Bowman. Clarida has been nominated to a four-year term as the Fed’s vice chairman and as a Fed Board governor representing Region 1 (Boston, Mass.). Bowman has been nominated as the Fed Board’s community bank representative for Region 8 (St. Louis, Mo.). Both testified before the Banking Committee May 15.

Wednesday, June 13 (and Thursday, June 14): Comptroller of the Currency Joseph Otting testifies in successive days before the House Financial Services Committee (Wednesday) and the Senate Banking Committee (Thursday). Advance billing of Otting’s testimony by the two panels was described as: “Financial Industry Regulation: the Office of the Comptroller of the Currency” for the House appearance (scheduled to begin at 10 a.m. in room 2128 of Rayburn House Office Building); and “Update from the Comptroller of the Currency” for the Senate session (set for 10 a.m. in room 538 of the Dirksen Senate Office Building). The hearings will be Otting’s first before Congress since his appearance last July, before Senate Banking, on his nomination to head the Office of the Comptroller of the Currency (OCC). The hearings could be an opportunity for lawmakers to question Otting about his actions thus far, as well as plans for the future – such as revising Community Reinvestment Act (CRA) rules.

Thursday, June 14: The Federal Reserve Board meets (beginning at 2:30 p.m.) to consider a final rule to establish single-counterparty credit limits for large U.S. bank holding companies ($50 billion or more in consolidated assets) and foreign banking organizations, along with a related regulatory reporting proposal. The rule was proposed in 2016 to implement section 165(e) of the Dodd-Frank Act Wall Street Reform and Consumer Protection Act (Dodd-Frank) and was written to apply to the large banking organizations. It sets three increasingly stringent credit exposure limits based on banking firms’ systemic importance. The aim is to limit the firms’ exposure to an unaffiliated company and, in turn, reduce risk arising from the company’s failure.

Thursday, June 14: The National Credit Union Administration (NCUA) Board releases the agenda for its open meeting the following week (June 21). The agenda is typically made public about 3 p.m.