Regulatory Capital Rule: Money Market Mutual Fund Liquidity Facility
| Citation | 85 FR 16232 |
| Record Number | 2020-06156 |
| Published date | 23 March 2020 |
| Section | Rules and Regulations |
| Court | Federal Deposit Insurance Corporation,Federal Reserve System,The Comptroller Of The Currency Office,Treasury Department |
Federal Register, Volume 85 Issue 56 (Monday, March 23, 2020)
[Federal Register Volume 85, Number 56 (Monday, March 23, 2020)]
[Rules and Regulations]
[Pages 16232-16237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06156]
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DEPARTMENT OF TREASURY
Office of the Comptroller of the Currency
12 CFR Part 3
[Docket No. OCC-2020-0011]
RIN 1557-AE83
FEDERAL RESERVE SYSTEM
12 CFR Part 217
[Regulation Q; Docket No. R-1705]
RIN 7100-AF79
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 324
RIN 3064-AF41
Regulatory Capital Rule: Money Market Mutual Fund Liquidity
Facility
AGENCY: Board of Governors of the Federal Reserve System (Board),
Office of the Comptroller of the Currency (OCC), and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Interim final rule and request for comment.
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SUMMARY: To provide liquidity to the money market sector to help
stabilize the financial system, the Board of Governors of the Federal
Reserve System authorized the Federal Reserve Bank of Boston to
establish the Money Market Mutual Fund Liquidity Facility (MMLF),
pursuant to section 13(3) of the Federal Reserve Act. Under the MMLF,
the Federal Reserve Bank of Boston will extend non-recourse loans to
eligible financial institutions to purchase certain types of assets
from money market mutual funds (MMFs). To facilitate this Federal
Reserve lending program, the Board, OCC and FDIC (together, the
agencies) are adopting this interim final rule to allow banking
organizations to neutralize the regulatory capital effects of
participating in the program. This
[[Page 16233]]
treatment would extend to the community bank leverage ratio.
DATES: The interim final rule is effective March 23, 2020. Comments on
the interim final rule must be received no later than May 7, 2020.
ADDRESSES:
OCC: Commenters are encouraged to submit comments through the
Federal eRulemaking Portal or email, if possible. Please use the title
``Regulatory Capital Rule: Money Market Mutual Fund Liquidity
Facility'' to facilitate the organization and distribution of the
comments. You may submit comments by any of the following methods:
Federal eRulemaking Portal--Regulations.gov Classic or
Regulations.gov Beta:
Regulations.gov Classic: Go to https://www.regulations.gov/. Enter
``Docket ID OCC-2020-0011'' in the Search Box and click ``Search.''
Click on ``Comment Now'' to submit public comments. For help with
submitting effective comments please click on ``View Commenter's
Checklist.'' Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov, including instructions for
submitting public comments.
Regulations.gov Beta: Go to https://beta.regulations.gov/ or click
``Visit New Regulations.gov Site'' from the Regulations.gov Classic
homepage. Enter ``Docket ID OCC-2020-0011'' in the Search Box and click
``Search.'' Public comments can be submitted via the ``Comment'' box
below the displayed document information or by clicking on the document
title and then clicking the ``Comment'' box on the top-left side of the
screen. For help with submitting effective comments please click on
``Commenter's Checklist.'' For assistance with the Regulations.gov Beta
site, please call (877) 378-5457 (toll free) or (703) 454-9859 Monday-
Friday, 9 a.m.-5 p.m. ET or email [email protected].
Email: [email protected].
Mail: Chief Counsel's Office, Attention: Comment
Processing, Office of the Comptroller of the Currency, 400 7th Street
SW, Suite 3E-218, Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``Docket ID OCC-2020-0011'' in your comment. In general, the OCC will
enter all comments received into the docket and publish the comments on
the Regulations.gov website without change, including any business or
personal information provided such as name and address information,
email addresses, or phone numbers. Comments received, including
attachments and other supporting materials, are part of the public
record and subject to public disclosure. Do not include any information
in your comment or supporting materials that you consider confidential
or inappropriate for public disclosure.
You may review comments and other related materials that pertain to
this rulemaking action by any of the following methods:
Viewing Comments Electronically--Regulations.gov Classic
or Regulations.gov Beta: Regulations.gov Classic: Go to https://www.regulations.gov/. Enter ``Docket ID OCC-2020-0011'' in the Search
box and click ``Search.'' Click on ``Open Docket Folder'' on the right
side of the screen. Comments and supporting materials can be viewed and
filtered by clicking on ``View all documents and comments in this
docket'' and then using the filtering tools on the left side of the
screen. Click on the ``Help'' tab on the Regulations.gov home page to
get information on using Regulations.gov. The docket may be viewed
after the close of the comment period in the same manner as during the
comment period.
Regulations.gov Beta: Go to https://beta.regulations.gov/ or click
``Visit New Regulations.gov Site'' from the Regulations.gov Classic
homepage. Enter ``Docket ID OCC-2020-0011'' in the Search Box and click
``Search.'' Click on the ``Comments'' tab. Comments can be viewed and
filtered by clicking on the ``Sort By'' drop-down on the right side of
the screen or the ``Refine Results'' options on the left side of the
screen. Supporting materials can be viewed by clicking on the
``Documents'' tab and filtered by clicking on the ``Sort By'' drop-down
on the right side of the screen or the ``Refine Results'' options on
the left side of the screen.'' For assistance with the Regulations.gov
Beta site, please call (877) 378-5457 (toll free) or (703) 454-9859
Monday-Friday, 9 a.m.-5 p.m. ET or email
[email protected].
The docket may be viewed after the close of the comment period in
the same manner as during the comment period.
Viewing Comments Personally: You may personally inspect
comments at the OCC, 400 7th Street SW, Washington, DC 20219. For
security reasons, the OCC requires that visitors make an appointment to
inspect comments. You may do so by calling (202) 649-6700 or, for
persons who are deaf or hearing impaired, TTY, (202) 649-5597. Upon
arrival, visitors will be required to present valid government-issued
photo identification and submit to security screening in order to
inspect comments.
Board: You may submit comments, identified by Docket No.R-1705; RIN
7100-AF79, by any of the following methods:
Agency website: http://www.federalreserve.gov. Follow the
instructions for submitting comments at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Email: [email protected]. Include docket
and RIN numbers in the subject line of the message.
FAX: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
All public comments will be made available on the Board's website
at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical reasons or to remove
personally identifiable information at the commenter's request.
Accordingly, comments will not be edited to remove any identifying or
contact information. Public comments may also be viewed electronically
or in paper in Room 146, 1709 New York Avenue NW, Washington, DC 20006,
between 9:00 a.m. and 5:00 p.m. on weekdays. For security reasons, the
Board requires that visitors make an appointment to inspect comments.
You may do so by calling (202) 452-3684.
FDIC: You may submit comments, identified by RIN 3064-AF41, by any
of the following methods:
Agency website: http://www.fdic.gov/regulations/laws/federal. Follow instructions for submitting comments on the Agency
website.
Email: [email protected]. Include ``RIN 3064-AF41'' on the
subject line of the message.
Mail: Robert E. Feldman, Executive Secretary, Attention:
Comments/RIN 3064-AF41, Federal Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
Hand Delivery/Courier: Comments may be hand delivered to
the guard station at the rear of the 550 17th Street Building (located
on F Street) on business days between 7 a.m. and 5 p.m. All comments
received must include the agency name (FDIC) and RIN 3064-AF41 and will
be posted without change to http://www.fdic.gov/regulations/laws/
[[Page 16234]]
federal, including any personal information provided.
FOR FURTHER INFORMATION CONTACT:
OCC: Margot Schwadron, Director, or Benjamin Pegg, Risk Expert,
Capital and Regulatory Policy, (202) 649-6370; or Carl Kaminski,
Special Counsel, or Kevin Korzeniewski, Counsel, Chief Counsel's
Office, (202) 649-5490, for persons who are deaf or hearing impaired,
TTY, (202) 649-5597, Office of the Comptroller of the Currency, 400 7th
Street SW, Washington, DC 20219.
Board: Anna Lee Hewko, Associate Director, (202) 530-6360,
Constance Horsley, Deputy Associate Director, (202) 452-5239, Juan
Climent, Manager, (202) 460 2180, Division of Supervision and
Regulation; Benjamin McDonough, Assistant General Counsel, (202) 452-
2036, Asad Kudiya, Senior Counsel, (202) 475-6358, or Mary Watkins,
Senior Attorney, (202) 452-3722, Legal Division, Board of Governors of
the Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551. Users of Telecommunication Device for Deaf (TDD)
only, call (202) 263-4869.
FDIC: Bobby R. Bean, Associate Director, [email protected]; Benedetto
Bosco, Chief, Capital Policy Section, [email protected]; Noah Cuttler,
Senior Policy Analyst, [email protected]; [email protected];
Capital Markets Branch, Division of Risk Management Supervision, (202)
898-6888; or Michael Phillips, Counsel, [email protected]; Catherine
Wood, Counsel, [email protected]; Supervision and Legislation Branch,
Legal Division, Federal Deposit Insurance Corporation, 550 17th Street
NW, Washington, DC 20429. For the hearing impaired only,
Telecommunication Device for the Deaf (TDD), (800) 925-4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. The Interim Final Rule
IV. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Riegle Community Development and Regulatory Improvement Act
of 1994
F. Use of Plain Language
G. Unfunded Mandates
I. Background
Recent events have significantly and adversely impacted global
financial markets. The spread of the Coronavirus Disease 2019 (COVID-
2019) has slowed economic activity in many countries, including the
United States. In particular, sudden disruptions in financial markets
have put increasing liquidity pressure on money market mutual funds.
Given these pressures, money market mutual funds have been faced with
redemption requests from clients with immediate cash needs. The money
market mutual funds may need to sell a significant number of assets to
meet these redemption requests, which could further increase market
pressures.
In order to prevent the disruption in the money markets from
destabilizing the financial system, on March 19, 2020, the Board, with
approval of the Secretary of the Treasury, authorized the Federal
Reserve Bank of Boston to establish the MMLF, pursuant to section 13(3)
of the Federal Reserve Act.\1\ Under the MMLF, the Federal Reserve Bank
of Boston will extend non-recourse loans to eligible borrowers to
purchase assets from money market mutual funds. Assets purchased from
MMFs will be posted as collateral to the Federal Reserve Bank of Boston
(eligible collateral). Eligible borrowers under the MMLF include
certain banking organizations subject to the agencies' capital rule,\2\
such as depository institutions and depository institution holding
companies. Eligible collateral under the MMLF includes U.S. Treasuries
and fully guaranteed agency securities, securities issued by
government-sponsored enterprises, and certain types of commercial
paper.
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\1\ 12 U.S.C. 343(3).
\2\ See 12 CFR part 3 (OCC); 12 CFR part 217 (Board); 12 CFR
part 324 (FDIC).
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To facilitate this Federal Reserve lending program, the agencies
are adopting this interim final rule to allow banking organizations to
neutralize the effects of purchasing assets through the program on
risk-based and leverage capital ratios.
III. The Interim Final Rule
The agencies' capital rule requires banking organizations to comply
with risk-based and leverage capital requirements, which are expressed
as a ratio of regulatory capital to assets. Risk-based requirements are
based on risk-weighted assets, whereas leverage requirements are based
on a measure of total consolidated assets or total leverage exposure.
Participation in the MMLF will affect the balance sheet of a banking
organization because the banking organization must acquire and hold
assets (that is, eligible collateral pledged to the Federal Reserve
Bank of Boston) on its balance sheet. As a result, a banking
organization that participates in the MMLF could potentially be subject
to increased capital requirements.
The agencies have determined that the current leverage and risk-
based capital requirements for the assets acquired by a banking
organization as part of the MMLF do not reflect the substantial
protections provided to the organization by the Federal Reserve Bank of
Boston in connection with the facility.\3\ Because of the non-recourse
nature of the Federal Reserve's extension of credit to the banking
organization, the organization is not exposed to credit or market risk
from the assets purchased by the banking organization and pledged to
the Federal Reserve. Therefore, the agencies believe that it would be
appropriate to exclude the effects of purchasing assets through the
MMLF from a banking organization's regulatory capital.\4\
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\3\ On September 26, 2008, the Board published an interim final
rule that provided the same regulatory capital treatment for assets
purchased through the Asset-Backed Commercial Paper Money Market
Mutual Fund Liquidity Facility. 73 FR 55706 (Sept. 26, 2008).
\4\ This includes assets purchased beginning on March 19, 2020,
and pledged to the Federal Reserve Bank of Boston in connection with
this facility.
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Specifically, the interim final rule would permit banking
organizations to exclude non-recourse exposures acquired as part of the
MMLF from a banking organization's total leverage exposure, average
total consolidated assets, advanced approaches-total risk-weighted
assets, and standardized total risk-weighted assets, as applicable.\5\
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\5\ This treatment would extend to the community bank leverage
ratio.
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The agencies seek comment on all aspects of this interim final
rule.
Questions: Discuss the advantages and disadvantages of neutralizing
the effects of participating in the MMLF on regulatory capital
requirements. How does the proposed approach support the objectives of
the facility? What other steps could be taken to support the objectives
of the facility? How does the proposed approach sufficiently support
the objectives of safety and soundness?
IV. Administrative Law Matters
A. Administrative Procedure Act
The agencies are issuing the interim final rule without prior
notice and the opportunity for public comment and the delayed effective
date ordinarily prescribed by the Administrative Procedure Act
(APA).\6\ Pursuant to section 553(b)(B) of the APA, general notice and
the opportunity for public comment are not required with respect to a
rulemaking when an ``agency for good cause finds (and incorporates the
finding and a brief statement of reasons therefor in the rules issued)
that notice
[[Page 16235]]
and public procedure thereon are impracticable, unnecessary, or
contrary to the public interest.'' \7\
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\6\ 5 U.S.C. 553.
\7\ 5 U.S.C. 553(b)(3)(A).
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The agencies believe that the public interest is best served by
implementing the interim final rule immediately upon publication in the
Federal Register. As discussed above, the spread of COVID-19 has slowed
economic activity in many countries, including the United States. In
particular, sudden disruptions in financial markets have put increasing
liquidity pressure on MMFs. Given these pressures, MMFs have been faced
with redemption requests from clients with immediate cash needs. The
MMFs may need to sell a significant number of assets to meet these
redemption requests, which could further increase market pressures.
In order to prevent the disruption in the money markets from
destabilizing the financial system, on March 18, 2020, the Board, with
approval of the Secretary of the Treasury, authorized the Federal
Reserve Bank of Boston to establish the MMLF, and this interim final
rule will facilitate this Federal Reserve lending program. For these
reasons, the agencies find that there is good cause consistent with the
public interest to issue the rule without advance notice and
comment.\8\
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\8\ 5 U.S.C. 553(b)(B); 553(d)(3).
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The APA also requires a 30-day delayed effective date, except for
(1) substantive rules which grant or recognize an exemption or relieve
a restriction; (2) interpretative rules and statements of policy; or
(3) as otherwise provided by the agency for good cause.\9\ Because the
rules relieve a restriction, the interim final rule is exempt from the
APA's delayed effective date requirement.\10\
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\9\ 5 U.S.C. 553(d).
\10\ 5 U.S.C. 553(d)(1).
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While the agencies believe that there is good cause to issue the
rule without advance notice and comment and with an immediate effective
date, the agencies are interested in the views of the public and
requests comment on all aspects of the interim final rule.
B. Congressional Review Act
For purposes of Congressional Review Act, the OMB makes a
determination as to whether a final rule constitutes a ``major''
rule.\11\ If a rule is deemed a ``major rule'' by the Office of
Management and Budget (OMB), the Congressional Review Act generally
provides that the rule may not take effect until at least 60 days
following its publication.\12\
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\11\ 5 U.S.C. 801 et seq.
\12\ 5 U.S.C. 801(a)(3).
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The Congressional Review Act defines a ``major rule'' as any rule
that the Administrator of the Office of Information and Regulatory
Affairs of the OMB finds has resulted in or is likely to result in (A)
an annual effect on the economy of $100,000,000 or more; (B) a major
increase in costs or prices for consumers, individual industries,
Federal, State, or local government agencies or geographic regions, or
(C) significant adverse effects on competition, employment, investment,
productivity, innovation, or on the ability of United States-based
enterprises to compete with foreign-based enterprises in domestic and
export markets.\13\
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\13\ 5 U.S.C. 804(2).
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For the same reasons set forth above, the agencies are adopting the
interim final rule without the delayed effective date generally
prescribed under the Congressional Review Act. The delayed effective
date required by the Congressional Review Act does not apply to any
rule for which an agency for good cause finds (and incorporates the
finding and a brief statement of reasons therefor in the rule issued)
that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.\14\ In light of
current market uncertainty, the agencies believe that delaying the
effective date of the rule would be contrary to the public interest.
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\14\ 5 U.S.C. 808.
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As required by the Congressional Review Act, the agencies will
submit the final rule and other appropriate reports to Congress and the
Government Accountability Office for review.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) (PRA)
states that no agency may conduct or sponsor, nor is the respondent
required to respond to, an information collection unless it displays a
currently valid OMB control number. The interim final rule affects the
agencies' current information collections for the Consolidated Reports
of Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC
051). The OMB control numbers for the agencies are: OCC OMB No. 1557-
0081; Board OMB No. 7100-0036; and FDIC OMB No. 3064-0052. The Board
has reviewed this interim final rule pursuant to authority delegated by
the OMB.
Although there is a substantive change to the actual calculation of
total leverage exposure, total consolidated assets, standardized total
risk-weighted assets, and advanced approaches total risk-weighted
assets, as applicable, for purposes of the Call Reports, the change
should be minimal and result in a zero net change in hourly burden
under the agencies' information collections. Submissions will, however,
be made by the agencies to OMB. The changes to the Call Reports and
their related instructions will be addressed in a separate Federal
Register notice. Similarly, the Board will address corresponding
changes to the information collected on the FR Y-9C (FR Y-9; OMB No.
7100-0128) as part of a separate Federal Register notice.
D. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) \15\ requires an agency to
consider whether the rules it proposes will have a significant economic
impact on a substantial number of small entities.\16\ The RFA applies
only to rules for which an agency publishes a general notice of
proposed rulemaking pursuant to 5 U.S.C. 553(b). As discussed
previously, consistent with section 553(b)(B) of the APA, the agencies
have determined for good cause that general notice and opportunity for
public comment is unnecessary, and therefore the agencies are not
issuing a notice of proposed rulemaking. Accordingly, the agencies have
concluded that the RFA's requirements relating to initial and final
regulatory flexibility analysis do not apply.
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\15\ 5 U.S.C. 601 et seq.
\16\ Under regulations issued by the Small Business
Administration, a small entity includes a depository institution,
bank holding company, or savings and loan holding company with total
assets of $600 million or less and trust companies with total assets
of $41.5 million or less. See 13 CFR 121.201.
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Nevertheless, the agencies seek comment on whether, and the extent
to which, the interim final rule would affect a significant number of
small entities.
E. Riegle Community Development and Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the Riegle Community Development and
Regulatory Improvement Act (RCDRIA),\17\ in determining the effective
date and administrative compliance requirements for new regulations
that impose additional reporting, disclosure, or other requirements on
insured depository institutions (IDIs), each Federal banking agency
must consider, consistent with the principle of safety and soundness
and the public interest, any administrative burdens that such
regulations would place on depository institutions, including small
depository institutions, and customers of
[[Page 16236]]
depository institutions, as well as the benefits of such regulations.
In addition, section 302(b) of RCDRIA requires new regulations and
amendments to regulations that impose additional reporting,
disclosures, or other new requirements on IDIs generally to take effect
on the first day of a calendar quarter that begins on or after the date
on which the regulations are published in final form, with certain
exceptions, including for good cause.\18\ For the reasons described
above, the agencies find good cause exists under section 302 of RCDRIA
to publish this interim final rule with an immediate effective date.
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\17\ 12 U.S.C. 4802(a).
\18\ 12 U.S.C. 4802.
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As such, the final rule will be effective on March 23, 2020.
Nevertheless, the agencies seek comment on RCDRIA.
F. Use of Plain Language
Section 722 of the Gramm-Leach-Bliley Act \19\ requires the Federal
banking agencies to use plain language in all proposed and final rules
published after January 1, 2000. The agencies have sought to present
the interim final rule in a simple and straightforward manner. The
agencies invite comments on whether there are additional steps it could
take to make the rule easier to understand. For example:
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\19\ 12 U.S.C. 4809.
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Have we organized the material to suit your needs? If not,
how could this material be better organized?
Are the requirements in the regulation clearly stated? If
not, how could the regulation be more clearly stated?
Does the regulation contain language or jargon that is not
clear? If so, which language requires clarification?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the regulation easier to
understand? If so, what changes to the format would make the regulation
easier to understand? What else could we do to make the regulation
easier to understand?
G. Unfunded Mandates
As a general matter, the Unfunded Mandates Act of 1995 (UMRA), 2
U.S.C. 1531 et seq., requires the preparation of a budgetary impact
statement before promulgating a rule that includes a Federal mandate
that may result in the expenditure by State, local, and tribal
governments, in the aggregate, or by the private sector, of $100
million or more in any one year. However, the UMRA does not apply to
final rules for which a general notice of proposed rulemaking was not
published. See 2 U.S.C. 1532(a). Therefore, because the OCC has found
good cause to dispense with notice and comment for this interim final
rule, the OCC has not prepared an economic analysis of the rule under
the UMRA.
List of Subjects
12 CFR Part 3
Administrative practice and procedure, Capital, Federal savings
associations, National banks, Risk.
12 CFR Part 217
Administrative practice and procedure, Banks, Banking, Federal
Reserve System, Holding companies, Reporting and recordkeeping
requirements, Risk, Securities.
12 CFR Part 324
Administrative practice and procedure, Banks, banking, Reporting
and recordkeeping requirements, Savings associations.
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Chapter I
Authority and Issuance
For the reasons stated in the joint preamble, the Office of the
Comptroller of the Currency amends part 3 of chapter I of Title 12,
Code of Federal Regulations as follows:
PART 3--CAPITAL ADEQUACY STANDARDS
0
1. The authority citation for part 3 continues to read as follows:
Authority: 12 U.S.C. 93a, 161, 1462, 1462a, 1463, 1464, 1818,
1828(n), 1828 note, 1831n note, 1835, 3907, 3909, and 5412(b)(2)(B).
Subpart G--Transition Provisions
0
2. Add Sec. 3.302 to read as follows:
Sec. 3.302 Exposures Related the Money Market Mutual Fund Liquidity
Facility.
Notwithstanding any other section of this part, a national bank or
federal savings association may exclude exposures acquired pursuant to
a non-recourse loan that is provided as part of the Money Market Mutual
Fund Liquidity Facility, announced by the Board on March 18, 2020, from
total leverage exposure, average total consolidated assets, advanced
approaches total risk-weighted assets, and standardized total risk-
weighted assets, as applicable. For the purpose of this provision, a
national bank's or federal savings association's liability under the
facility must be reduced by the purchase price of the assets acquired
with funds advanced from the facility.
Board of Governors of the Federal Reserve System
12 CFR Chapter II
Authority and Issuance
For the reasons stated in the joint preamble, the Board of
Governors of the Federal Reserve System amends 12 CFR chapter II as
follows:
PART 217--CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS AND
LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS (REGULATION Q)
0
3. The authority citation for part 217 continues to read as follows:
Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a,
1818, 1828, 1831n, 1831o, 1831p-1, 1831w, 1835, 1844(b), 1851, 3904,
3906-3909, 4808, 5365, 5368, 5371 and 5371n note.
Subpart G--Transition Provisions
0
4. Add Sec. 217.302 to read as follows:
Sec. 217.302 Exposures Related the Money Market Mutual Fund Liquidity
Facility.
Notwithstanding any other section of this part, a Board-regulated
institution may exclude exposures acquired pursuant to a non-recourse
loan that is provided as part of the Money Market Mutual Fund Liquidity
Facility, announced by the Board on March 18, 2020, from total leverage
exposure, average total consolidated assets, advanced approaches total
risk-weighted assets, and standardized total risk-weighted assets, as
applicable. For the purpose of this provision, a board-regulated
institution's liability under the facility must be reduced by the
purchase price of the assets acquired with funds advanced from the
facility.
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Chapter III
Authority and Issuance
For the reasons set forth in the joint preamble, chapter III of
title 12 of the Code of Federal Regulations is amended as follows:
PART 324--CAPITAL ADEQUACY OF FDIC-SUPERVISED INSTITUTIONS
0
5. The authority citation for part 324 continues to read as follows:
Authority: 12 U.S.C. 1815(a), 1815(b), 1816, 1818(a), 1818(b),
1818(c), 1818(t), 1819(Tenth), 1828(c), 1828(d), 1828(i),
[[Page 16237]]
1828(n), 1828(o), 1831o, 1835, 3907, 3909, 4808; 5371; 5412; Pub. L.
102-233, 105 Stat. 1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. L.
102-242, 105 Stat. 2236, 2355, as amended by Pub. L. 103-325, 108
Stat. 2160, 2233 (12 U.S.C. 1828 note); Pub. L. 102-242, 105 Stat.
2236, 2386, as amended by Pub. L. 102-550, 106 Stat. 3672, 4089 (12
U.S.C. 1828 note); Pub. L. 111-203, 124 Stat. 1376, 1887 (15 U.S.C.
78o-7 note).
Subpart G--Transition Provisions
0
6. Add Sec. 324.302 to read as follows:
Sec. 324.302 Exposures Related the Money Market Mutual Fund Liquidity
Facility.
Notwithstanding any other section of this part, an FDIC-supervised
institution may exclude exposures acquired pursuant to a non-recourse
loan that is provided as part of the Money Market Mutual Fund Liquidity
Facility, announced by the Federal Reserve on March 18, 2020, from
total leverage exposure, average total consolidated assets, advanced
approaches total risk-weighted assets, and standardized total risk-
weighted assets, as applicable.
For the purpose of this provision, an FDIC-supervised institution's
liability under the facility must be reduced by the purchase price of
the assets acquired with funds advanced from the facility.
Morris R. Morgan,
First Deputy Comptroller, Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System.
Ann E. Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on March 19, 2020.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2020-06156 Filed 3-19-20; 3:00 pm]
BILLING CODE 6210-01-P
