To recap, in addition to its massive efforts to keep financial markets running and the economy from sinking too much with asset purchases and credit facilities, the Federal Reserve — along with other agencies — is adjusting regulatory and supervisory requirements. It has made some significant ones starting with reducing reserve requirements to zero effective March 26. These are the most important ones of which I am aware:
14-Apr-20 – Federal banking agencies to defer appraisals and evaluations for real estate transactions affected by COVID-19.
07-Apr-20 – Interagency statement on loan modifications by financial institutions working with customers affected by coronavirus.
06-Apr-20 – Two interim final rules to provide temporary relief to community banking organizations. Two rules modify community bank leverage ratio framework.
02-Apr-20 – Agencies extended comment period for Volcker rule modifications to May 1, 2020.
01-Apr-20 – Temporary change to supplementary leverage ratio rule to ease strains in Treasury market and increase banks’ ability to provide credit.
31-Mar-20 – Effective date for Federal Reserve Board revised control framework delayed six months to reduce operational burden and allow institutions to focus on current economic conditions.
27-Mar-20 – Agencies announce two actions to support lending by allowing early adoptions of new methodology on how certain banking organizations measure counterparty credit risk derivatives contracts and an optional extension of regulatory capital transition for the new credit loss accounting standard (SA-CCR).
26-Mar-20 – Federal Reserve grants additional time to submit certain regulatory reports “in light of staffing priorities and disruptions caused by COVID-19” to financial institutions with $5 billion or less in total assets.
24-Mar-20 – “[M]onitoring and outreach to help financial institutions of all sizes”; temporarily reduce examination activities, especially for smallest banks; large banks should submit CCAR by April 6 to assist in monitoring capital management; additional time granted for resolving non-critical existing supervisory findings.
24-Mar-20 – Federal Reserve announced a six-month day in planned implementation of procedures governing provision of intraday credit to US branches and agencies of foreign banking organizations (FBOs).
24-Mar-20 – Federal Reserve provided additional information to financial instructions on how it would adjust its supervision in light of the coronavirus.
23-Mar-20 – Federal Reserve announced technical change to allow banks to continue lending even if total loss absorbing capacity (TLAC) declines.
22-Mar-20 – Agencies provide additional information to encourage financial institutions to work with borrowers affected by COVID-19 with “prudent” loan modifications.
17-Mar-20 – Agencies encourage banks to support households and businesses, and announced technical change to phase in automatic distribution restrictions gradually if a firm’s capital levels decline.
15-Mar-20 – Federal Reserve reduced reserve requirements to 0 (zero) effective March 26, 2020 to support the flow of credit.
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