Federal Reserve

Federal Reserve: Jeffrey R. Schmid Named 10th President and CEO of the Federal Reserve Bank of Kansas City

Schmid joins the Kansas City Fed August 21, 2023, with more than 40 years of regulatory and banking experience. The Federal Reserve Bank of Kansas City’s Board of Directors announced today that Jeffrey R. Schmid, president and chief executive officer of the Southwestern Graduate School of Banking Foundation at Southern Methodist University’s Cox School of Business, has…

Agencies Request Comment on Proposed Rules to Strengthen Capital Requirements for Large Banks

Bank regulatory agencies today requested comment on a proposal to increase the strength and resilience of the banking system.  The proposal would modify large bank capital requirements to better reflect underlying risks and increase the consistency of how banks measure their risks.  The changes would implement the final components of the Basel III agreement, also…

Federal Reserve: FedNow Service, New System for Instant Payments, Now Live

The Federal Reserve on Thursday announced that its new system for instant payments, the FedNow® Service, is now live. Banks and credit unions of all sizes can sign up and use this tool to instantly transfer money for their customers, any time of the day, on any day of the year. “The Federal Reserve built the…

Agencies Finalize Policy Statement on Commercial Real Estate Loan Accommodations and Workouts

Federal financial institution regulatory agencies today jointly issued a final policy statement on commercial real estate loan accommodations and workouts. The updates reinforce and build on existing supervisory guidance calling for financial institutions to work prudently and constructively with creditworthy borrowers during times of financial stress. The statement is substantially similar to a proposal issued…

Agencies Release List of Distressed and Underserved Nonmetropolitan Middle-Income Geographies for 2023

Federal bank regulatory agencies today made available the 2023 list of distressed or underserved nonmetropolitan middle-income geographies. The Community Reinvestment Act (CRA) encourages banks to help meet the credit needs of their local communities, including low- and moderate- income communities, in a safe and sound manner. Distressed or underserved nonmetropolitan middle-income geographies are census tracts…

Interagency Notice of Proposed Rulemaking Issued on Quality Control Standards for Automated Valuation Models

The Office of the Comptroller of the Currency (OCC), along with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Consumer Financial Protection Bureau, and the Federal Housing Finance Agency (collectively, the agencies) are proposing a rule designed to implement quality control standards for…

Interagency Guidance Proposed on Reconsiderations of Value for Residential Real Estate Valuations

Five federal regulatory agencies today requested public comment on proposed guidance addressing reconsiderations of value (ROV) for residential real estate transactions. The proposed guidance advises on policies that financial institutions may implement to allow consumers to provide financial institutions with information that may not have been considered during an appraisal or if deficiencies are identified…

Agencies Issue Final Guidance on Third-Party Risk Management

Federal bank regulatory agencies today issued final joint guidance designed to help banking organizations manage risks associated with third-party relationships, including relationships with financial technology companies. The final guidance describes principles and considerations for banking organizations’ risk management of third-party relationships. The final guidance covers risk management practices for the stages in the life cycle…

Agencies Request Comment on Quality Control Standards for Automated Valuation Models Proposed Rule

Six federal regulatory agencies today requested public comment on a proposed rule designed to ensure the credibility and integrity of models used in real estate valuations. In particular, the proposed rule would implement quality control standards for automated valuation models (AVMs) used by mortgage originators and secondary market issuers in valuing real estate collateral securing…

Banking Agencies Issue Host State Loan-to-Deposit Ratios

Federal bank regulatory agencies today issued the host state loan-to-deposit ratios that are used to evaluate compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios replace those from June 2022. By law, a bank is generally prohibited from establishing or acquiring branches outside of its home state…