The federal financial institution regulatory agencies issued updated FAQs for the new accounting standard on credit losses. The newly issued FAQs include both changes to previously issued FAQs and new FAQs.
In a speech earlier this year, FDIC Chair Jelena McWilliams provided some insights concerning her vision with regard to bank regulation.
Changing and advancing technology continues to impact the financial services industry. This influence is far reaching, and has implications not only related to consumer preferences but also to raise policy and regulatory questions.
The Office of Inspector General issued a report dated January 28, 2019 with recommendations designed to improve the Bureau Division of Supervision, Enforcement and Fair Lending’s (SEFL) Matters Requiring Attention (MRA) follow-up process.
After an uptick in the third quarter of 2018, the Mortgage Bankers Association reported delinquency rates on 1-4 family residential properties have fallen to an 18 year low. This is according to the Mortgage Bankers Association National Delinquency Survey.
The new CECL standard is presumably designed to enhance the stability of the financial sector by providing more accurate assessments of loan losses. It also requires a change from the current estimates of loan losses that are produced by most institutions today to projections or forecasts.
Speaking at the American Bar Association Banking Law Committee Annual Meeting, "Principles of Supervision"; in Washington, D.C., FDIC Chair McWilliams described her vision and priorities for the Corporation.
As concerns continue to grow for investors due to market volatility and increasingly pessimistic economic forecasts, financial institutions should be paying particular attention. The economic news, coupled with the prospect of more interest rate hikes, not only create conditions for weakening asset quality and earnings but also highlights the importance of measuring these potential impacts on loan portfolios.
On December 21, the OCC, FDIC and the Fed Board of Governors approved a final rule modifying their regulatory capital rules and providing a phase-in period of three years of the day-one regulatory capital effects of CECL. The final rule will take effect April 1, 2019.
Representing a significant change, the FDIC is requesting comment on a proposed rule that would amend the existing stress testing regulations to increase the minimum threshold for applicability from $10 billion to $250 billion, revise the frequency of required stress tests by FDIC-supervised institutions, and reduce the number of required stress testing scenarios from three to two.