The Fed, FDIC, and OCC have issued a “Statement on Reference Rates for Loans” that addresses replacement rates for the London Inter-Bank Offered Rate (LIBOR). LIBOR, which many creditors currently use as the index for calculating the interest rate on credit cards and other variable-rate consumer credit products, is expected to be discontinued
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Federal banking regulators to appear before House and Senate committees this week
On November 10, the Senate Banking Committee will hold a hearing, “Oversight of Financial Regulators.”
On November 12, the House Financial Services Committee will hold a hearing, “Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions during the Pandemic.”
The scheduled witnesses at both hearings are:…
CFPB and federal banking agencies issue proposed rule on role of supervisory guidance
The CFPB, OCC, Federal Reserve, FDIC, and NCUA have issued a proposed rule on the role of supervisory guidance.
In September 2018, the agencies issued an “Interagency Statement Clarifying the Role of Supervisory Guidance.” In response to the Statement, the agencies received a petition requesting a formal rulemaking on the subject. The proposed…
Fed announces details of real-time settlement service to support instant payments
The Federal Reserve Board recently issued a Service Announcement setting forth the details of its FedNow Service, a new 24x7x365 interbank settlement service with clearing functionality to support instant payments in the United States.
The Fed announced its decision to develop the FedNow Service in a notice and request for comment issued in August 2019. …
Federal Reserve issues interim final rule allowing depository institutions to suspend enforcement of six-per-month savings account transaction limit
Effective April 24, 2020, the Federal Reserve amended Regulation D to remove the six-per-month limit on transfers or withdrawals from the definition of a “savings deposit.” The amendment is set forth in an interim final rule published in the Federal Register on April 28. Comments on the interim final rule must be filed by June…
CFPB and federal banking agencies issue joint statement encouraging small-dollar loans in response to COVID-19 outbreak
The CFPB, OCC, FDIC, Federal Reserve, and NCUA have issued a joint statement “to specifically encourage” banks, savings associations, and credit unions “to offer responsible small-dollar loans to both consumers and small businesses” in response to the COVID-19 outbreak. The statement builds on the March 19 statement issued jointly by the OCC, FDIC, and Federal…
The Fed’s entry into real-time payments: commercial and contractual implications
Last month, the Federal Reserve Board announced its plans to develop a real-time payments (RTP) service to be offered by the Federal Reserve Banks to directly support faster payments.
Three members of Ballard Spahr’s Consumer Financial Services Group with extensive experience negotiating complex payments transactions for some of the world’s largest retailers and financial institutions…
Fed announces plans to develop real-time settlement service to support faster payments
The Federal Reserve Board has determined that the Federal Reserve should take the following two actions:
- Develop a new interbank 24x7x365 real-time gross settlement (RTGS) service to be offered by the Federal Reserve Banks to directly support faster payments and to be called the FedNow Service
- Explore expanding the hours of the Fedwire Funds Service
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Fed proposal to revise control rules would not create alternative to OCC fintech charter
The Federal Reserve Board has published in the Federal Register a notice of proposed rulemaking with request for comment on a proposal to simplify and increase transparency of its rules for determining control of a banking organization. The proposal’s comment period closes on July 15, 2019.
The proposed revisions to the Board’s control regulations would…
FDIC and Fed issue joint advisory on FCRA provision allowing voluntary private education loan rehabilitation programs
The FDIC and the Federal Reserve Board of Governors issued a joint advisory to make financial institutions aware of a 2018 amendment to the Fair Credit Reporting Act that provides that a financial institution may, but is not required, to offer a loan rehabilitation program (Section 602 Program) to private education loan borrowers whose credit…