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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Wednesday, December 16, 2020

By
FedACTion Task Force
On Dec 16, 2020

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Click here to read more from our Coronavirus series.

Congress

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.

Federal Agencies

Federal Reserve Board

Federal Reserve Board Releases Industrial Production and Capacity Utilization Report

December 15, 2020

In a report (Report) on industrial production and capacity utilization, the Board of Governors of the Federal Reserve System found that industrial production increased 0.4% in November 2020. According to the Report, after having fallen 16.5% between February and April, the level of the index has risen to about 5% below its pre-COVID level. Manufacturing output advanced 0.8% for its seventh consecutive monthly gain.

Federal Reserve Bank of New York

FRBNY Releases December 2020 Empire State Manufacturing Survey

December 15, 2020

The Federal Reserve Bank of New York released its December 2020 Empire State Manufacturing Survey (Survey), which found that business activity edged slightly higher in New York State. According to the Survey results, the general business conditions index was little changed at 4.9. Employment posted its strongest gain in months, and the average workweek lengthened. Looking ahead, firms remained optimistic that conditions would improve over the next six months.

Federal Deposit Insurance Corporation

FDIC Board Approves Final Rule on Brokered Deposit and Interest Rate Restrictions

December 15, 2020

The Federal Deposit Insurance Corporation (FDIC) approved a final rule to establish a new framework for analyzing whether deposits made through deposit arrangements qualify as brokered deposits, including those between insured depository institutions (IDIs) and third parties, such as financial technology companies. The final rule also amends the methodology for calculating the interest rate restrictions that apply to less than well capitalized IDIs.

FDIC Approves Rules Governing Industrial Banks

December 15, 2020

The Federal Deposit Insurance Corporation (FDIC) also approved a final rule that will require certain conditions and commitments for each deposit insurance application approval, non-objection to a change in control notice, and merger application approval that would result in an insured industrial bank or industrial loan company becoming a subsidiary of a company that is not subject to consolidated supervision by the Board of Governors of the Federal Reserve System.

FDIC Board Approves 2021 Operating Budget

December 15, 2020

The Federal Deposit Insurance Corporation also approved a 2021 Operating Budget of $2.279 billion. The budget provides funding for the continuation of critical FDIC information technology modernization, supports numerous projects to foster innovation at the nation’s banks, and expands initiatives to support diversity and inclusion. The budget also provides funding for contingency reserves in the event COVID-19-related economic uncertainty leads to a deterioration in financial institution health.

Consumer Financial Protection Bureau

CFPB Releases Report on Implementing Dodd-Frank Act’s Small Business Lending Data Collection Requirement

December 15, 2020

The Consumer Financial Protection Bureau (Bureau) released a panel report as part of its rulemaking process under Dodd-Frank Act Section 1071 governing the collection and reporting of small business lending data.

Federal Housing Finance Agency

FHFA Releases Report on Non-Performing Loan Sales

December 15, 2020

The Federal Housing Finance Agency (FHFA) released the latest report on the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises). 

International

European Banking Authority

EBA Statement, Citing COVID-19, Encourages Conservative Approach by Banks on Dividends, Other Distributions

December 15, 2020

The European Banking Authority, citing the COVID-19 crisis and the uncertainty of its impact on the economy, urged banks to refrain from distributing capital outside the banking system when deciding on dividends and other distribution policies, including share buybacks.