The Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, “the agencies”) are jointly issuing and requesting public comment on interim final rules to implement section 83001 of the Fixing America’s Surface Transportation Act (FAST Act), which was enacted on December 4, 2015. Section 83001 of the FAST Act permits the agencies to examine qualifying insured depository institutions with less than $1 billion in total assets no less than once during each 18-month period. More... Prior to enactment of the FAST Act, only qualifying insured depository institutions with less than $500 million in total assets were eligible for an 18-month on-site examination cycle. The interim final rules generally would allow well capitalized and well managed institutions with less than $1 billion in total assets to benefit from the extended 18-month examination schedule. In addition, the interim final rules make parallel changes to the agencies’ regulations governing the onsite examination cycle for U.S. branches and agencies of foreign banks, consistent with the International Banking Act of 1978. Finally, the FDIC is integrating its regulations regarding the frequency of safety and soundness examinations for State nonmember banks and State savings associations. The interim final rules became effective February 29, 2016 (Regulation H at 3-150 and Regulation K at 3-500, Docket R-1531), the same day they were published in the Federal Register. Comments on the interim final rules must be received by April 29, 2016.

The Board requests public comment on an interim final rule that amends Regulation I (Issue and Cancellation of Federal Reserve Bank Capital Stock) to establish procedures for payment of dividends by the Federal Reserve Banks to implement the provisions of section 32203 of the FAST Act. More... The interim final rule sets out the dividend rates applicable to Reserve Bank depository institution stockholders and amends provisions of Regulation I regarding treatment of accrued dividends when a Reserve Bank issues or cancels Federal Reserve Bank capital stock. The interim final rule became effective February 24, 2016 (Regulation I at 3-460, Docket R-1533), the same day it was published in the Federal Register. Comments on the interim final rule must be received by April 29, 2016.

The Board, FDIC, and OCC issued Interagency Guidance on Funds Transfer Pricing Related to Funding and Contingent Liquidity Risks to address weaknesses observed in some large financial institutions’ funds transfer pricing practices. The guidance became effective March 1, 2016 (Guidance, Risk Management at 3-1579.241).

The Board and OCC issued Supervisory Guidance on Model Risk Management, which is intended for use by banking organizations and supervisors as they assess organizations’ management of model risk. More... Banking organizations should be attentive to the possible adverse consequences (including financial loss) of decisions based on models that are incorrect or misused, and should address those consequences through active model risk manage

More... ment. The guidance describes the key aspects of an effective model risk-management framework, including robust model development, implementation, and use; effective validation; and sound governance, policies, and controls. The guidance became effective April 4, 2011 (Guidance, Risk Management at 3-1579.242).

The Board, the Farm Credit Administration (FCA), FDIC, the Federal Housing Finance Agency (FHFA), and OCC are adopting a joint rule to establish minimum margin and capital requirements for registered swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants for which one of the agencies is the prudential regulator. This final rule implements sections 731 and 764 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), as amended by the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA). More... Sections 731 and 764 require the agencies to adopt rules jointly to establish capital requirements and initial and variation margin requirements for such entities on all non-cleared swaps and non-cleared security-based swaps in order to offset the greater risk to such entities and the financial system arising from the use of swaps and security-based swaps that are not cleared. The final rule became effective April 1, 2016 (Regulation KK at 3-3680, Docket R-1415) and was published in the Federal Register on November 30, 2015.

The Board, FCA, FDIC, FHFA, and OCC are adopting an interim final rule that will exempt certain non-cleared swaps and non-cleared security-based swaps with certain counterparties that qualify for an exception or exemption from clearing from the initial and variation margin requirements promulgated under sections 731 and 764 of the Dodd-Frank Act. More... This interim final rule implements title III of TRIPRA, which exempts from the agencies’ swap margin rules non-cleared swaps and non-cleared security-based swaps in which a counterparty qualifies for an exemption or exception from clearing under the Dodd-Frank Act. This interim final rule is a companion rule to the final rules adopted by the agencies to implement section 731 and 764 of the Dodd-Frank Act. The final rule became effective April 1, 2016 (Regulation KK at 3-3680, Docket R-1415) and was published in the Federal Register on November 30, 2015.

The Board repealed its Regulation AA (Unfair or Deceptive Acts or Practices), which was issued pursuant to its rule-writing authority under section 18(f)(1) of the Federal Trade Commission Act (FTC Act). Section 1092(2) of the Dodd-Frank Act repealed section 18(f)(1) of the FTC Act, thus eliminating the Board’s rule-writing authority under the act. The final rule became effective March 21, 2016 (Regulation AA at 6-1200, Docket R-1490) and was published in the Federal Register on February 18, 2016.