The coming week brings deadlines for comment on a bank leverage capital ratio proposal, the consumer bureau’s inherited regulations “request for information,” a House panel hearing on financial industry “de-risking” and a speech from the Federal Reserve’s top supervisory official at a banking conference in Utah.
Here are details:
Monday, June 25: Comments are due to the Federal Reserve Board and Office of the Comptroller of the Currency (OCC) on a proposal that would reduce the enhanced supplementary leverage ratio (eSLR) capital requirements applicable to the eight global systemically important banking organizations (GSIBs) headquartered in the United States. The FDIC, while still chaired by Martin Gruenberg, declined to be part of the proposal, and Fed Board Gov. Lael Brainard voted against issuing it at all.
Also due this day are comments on the Bureau of Consumer Financial Protection’s (BCFP) “request for information” on the bureau’s inherited regulations and inherited rulemaking authorities. The bureau is seeking comments and information from interested parties to assist the bureau in considering whether, consistent with its statutory authority to prescribe rules pursuant to the federal consumer financial laws, it should amend the regulations or exercise the rulemaking authorities that it inherited from other federal agencies. As of Thursday, 28 comments were recorded as received on the website Regulations.gov.
Tuesday, June 26: A hearing titled “International and Domestic Implications of De-Risking” will be held by the House Financial Services Subcommittee on Financial Institutions and Consumer Credit. The hearing includes financial industry and trade witnesses as well as the director of the Government Accountability Office’s (GAO) financial markets and community investment unit. A committee memorandum on the hearing describes “de-risking” as “the practice of financial institutions terminating relationships and closing accounts of clients and merchants deemed as ‘high-risk,’ unprofitable, or complex, in order to avoid legal liability and enhanced regulatory scrutiny.” It says entities categorized as high-risk “include many legitimate businesses such as money service businesses, payday lenders, non-profit organizations, and financial technology companies.” The hearing is scheduled to begin at 2 p.m. ET.
Wednesday, June 27: Federal Reserve Board Vice Chairman of Supervision Randal Quarles gives a speech, “International Regulatory Participation and Cooperation,” before the Utah Bankers Association 110th Annual Convention, held in Sun Valley, Idaho. His remarks will be aired live online.