[Federal Register Volume 78, Number 5 (Tuesday, January 8, 2013)]
[Proposed Rules]
[Pages 1698-1703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31517]



[[Page 1697]]

Vol. 78

Tuesday,

No. 5

January 8, 2013

Part XXIII





Federal Reserve System





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Semiannual Regulatory Agenda

  Federal Register / Vol. 78 , No. 5 / Tuesday, January 8, 2013 / 
Unified Agenda  

[[Page 1698]]


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FEDERAL RESERVE SYSTEM

12 CFR Ch. II


Semiannual Regulatory Flexibility Agenda

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Semiannual regulatory agenda.

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SUMMARY: The Board is issuing this agenda under the Regulatory 
Flexibility Act and the Board's Statement of Policy Regarding Expanded 
Rulemaking Procedures. The Board anticipates having under consideration 
regulatory matters as indicated below during the period November 1, 
2012 through April 30, 2013. The next agenda will be published in 
spring 2013.

DATES: Comments about the form or content of the agenda may be 
submitted any time during the next six months.

ADDRESSES: Comments should be addressed to Robert de V. Frierson, 
Secretary of the Board, Board of Governors of the Federal Reserve 
System, Washington, DC 20551.

FOR FURTHER INFORMATION CONTACT: A staff contact for each item is 
indicated with the regulatory description below.

SUPPLEMENTARY INFORMATION: The Board is publishing its fall 2012 agenda 
as part of the Fall 2012 Unified Agenda of Federal Regulatory and 
Deregulatory Actions, which is coordinated by the Office of Management 
and Budget under Executive Order 12866. The agenda also identifies 
rules the Board has selected for review under section 610(c) of the 
Regulatory Flexibility Act, and public comment is invited on those 
entries. The complete Unified Agenda will be available to the public at 
the following Web site: www.reginfo.gov. Participation by the Board in 
the Unified Agenda is on a voluntary basis.
    The Board's agenda is divided into four sections. The first, 
Proposed Rule Stage, reports on matters the Board may consider for 
public comment during the next six months. The second section, Final 
Rule Stage, reports on matters that have been proposed and are under 
Board consideration. A third section, Long-Term Actions, reports on 
matters that have been proposed and are under Board consideration, but 
a completion date has not been determined. And a fourth section, 
Completed Actions, reports on regulatory matters the Board has 
completed or is not expected to consider further.
    A dot () preceding an entry indicates a new matter that was 
not a part of the Board's previous agenda.

 Margaret McCloskey Shanks,
Associate Secretary of the Board.

               Federal Reserve System--Proposed Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
521.......................  Regulation CC--                    7100-AD68
                             Availability of Funds and
                             Collection of Checks
                             (Docket No. R-1408).
522.......................  Regulation NN--Retail              7100-AD79
                             Foreign Exchange
                             Transactions (Docket No.
                             R-1428).
------------------------------------------------------------------------


                Federal Reserve System--Final Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
523.......................  Regulations H and Y--              7100-AD87
                             Regulatory Capital Rules:
                             Regulatory Capital,
                             Implementation of Basel
                             III, Minimum Regulatory
                             Capital Ratios, Capital
                             Adequacy, and Transition
                             Provisions. (Docket No. R-
                             1442).
524.......................  Regulation LL--Savings and         7100-AD80
                             Loan Holding Companies
                             and Regulation MM--Mutual
                             Holding Companies (Docket
                             No. R-1429).
------------------------------------------------------------------------


                Federal Reserve System--Long-Term Actions
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
525.......................  Regulation KK--Margin and          7100-AD74
                             Capital Requirements for
                             Covered Swap Entities
                             (Docket No. R-1415).
------------------------------------------------------------------------


                Federal Reserve System--Completed Actions
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
526.......................  Regulations H and Y--              7100-AD88
                             Regulatory Capital Rules:
                             Standardized Approach for
                             Risk-weighted Assets;
                             Market Discipline and
                             Disclosure Requirements
                             (Docket No. R-1443).
527.......................  Regulations H and Y--              7100-AD89
                             Regulatory Capital Rules:
                             Advanced Approaches Risk-
                             based Capital Rule;
                             Market Risk Capital Rule
                             (Docket No. R-1444).
528.......................  Regulation OO--Securities          7100-AD81
                             Holding Companies (Docket
                             No. R-1430).
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[[Page 1699]]

FEDERAL RESERVE SYSTEM (FRS)

Proposed Rule Stage

521. Regulation CC--Availability of Funds and Collection of Checks 
(Docket No. R-1408)

    Legal Authority: 12 U.S.C. 4001 to 4010; 12 U.S.C. 5001 to 5018
    Abstract: The Federal Reserve Board (the Board) proposed amendments 
to Regulation CC to facilitate the banking industry's ongoing 
transition to fully electronic interbank check collection and return, 
including proposed amendments to condition a depositary bank's right of 
expeditious return on the depositary bank agreeing to accept returned 
checks electronically either directly or indirectly from the paying 
bank. The Board also proposed amendments to the funds availability 
schedule provisions to reflect the fact that there are no longer any 
nonlocal checks. The Board proposed to revise the model forms in 
appendix C that banks may use in disclosing their funds availability 
policies to their customers and to update the preemption determinations 
in appendix F. Finally, the Board requested comment on whether it 
should consider future changes to the regulation to improve the check 
collection system, such as decreasing the time afforded to a paying 
bank to decide whether to pay a check in order to reduce the risk to a 
depositary bank of needing to make funds available for withdrawal 
before learning whether a deposited check has been returned unpaid.
    Timetable:

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               Action                    Date            FR Cite
------------------------------------------------------------------------
Board Requested Comment.............   03/25/11  76 FR 16862
Board Expects Further Action........   12/00/12  .......................
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    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Dena Milligan, Attorney, Federal Reserve System, 
Legal Division, Phone: 202 452-3900.
    RIN: 7100-AD68

522. Regulation NN--Retail Foreign Exchange Transactions (Docket No. R-
1428)

    Legal Authority: 7 U.S.C. 2(i)(2)(E); 12 U.S.C. 248; 12 U.S.C. 321 
to 338; 12 U.S.C. 1818; 12 U.S.C. 3108; * * *
    Abstract: The Federal Reserve Board is publishing for comment a 
regulation to permit banking organizations under its supervision to 
engage in off-exchange transactions in foreign currency with retail 
customers. Section 2(c)(Z)(E) of the Commodity Exchange Act, as amended 
by the Dodd-Frank Act, requires U.S. financial institutions to effect 
these transactions only pursuant to rules adopted by their Federal 
regulatory authority.
    Timetable:

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               Action                    Date            FR Cite
------------------------------------------------------------------------
Board Requested Comment.............   08/03/11  76 FR 46652
Board Expects Further Action........   12/00/12  .......................
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    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Scott J. Holz, Senior Counsel, Federal Reserve 
System, Legal Division, Phone: 202 452-2966.
    RIN: 7100-AD79

FEDERAL RESERVE SYSTEM (FRS)

Final Rule Stage

523.  Regulations H and Y--Regulatory Capital Rules: Regulatory 
Capital, Implementation of Basel III, Minimum Regulatory Capital 
Ratios, Capital Adequacy, and Transition Provisions (Docket No. R-1442)

    Legal Authority: 12 U.S.C. 24; 12 U.S.C. 36; 12 U.S.C. 92a; 12 
U.S.C. 93a; * * *
    Abstract: In this Notice of Proposed Rulemaking (NPRM), the Office 
of the Comptroller of the Currency, the Board of Governors of the 
Federal Reserve System, and the Federal Deposit Insurance Corporation, 
(the Agencies) are proposing to revise their risk-based and leverage 
capital requirements consistent with agreements reached by the Basel 
Committee on Banking Supervision (BCBS) in ``Basel III: A Global 
Regulatory Framework for More Resilient Banks and Banking Systems'' 
(Basel III). The proposed revisions would include implementation of a 
new common equity tier I minimum capital requirement, a higher minimum 
tier I capital requirement, and, for banking organizations subject to 
the advanced approaches capital rules, a supplementary leverage ratio 
that incorporates a broader set of exposures in the denominator 
measure. Additionally, consistent with Basel III, the Agencies are 
proposing to apply limits on a banking organization's capital 
distributions and certain discretionary bonus payments if the banking 
organization does not hold a specified amount of common equity tier I 
capital above the amount necessary to meet its minimum risk-based 
capital requirements. This NPRM also would establish more conservative 
standards for including an instrument in regulatory capital. As 
discussed in the proposal, the revisions set forth in this NPRM are 
consistent with section 171 of the Dodd-Frank Act, which requires the 
Agencies to establish minimum risk-based and leverage capital 
requirements.
    Timetable:

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               Action                    Date            FR Cite
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Board Requested Comment.............   08/30/12  77 FR 53059
Board Expects Further Action........   03/00/13
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    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Anna Lee Hewko, Assistant Director, Federal Reserve 
System, Division of Banking Supervision and Regulation, Phone: 202 530-
6260.
    RIN: 7100-AD87

524. Regulation LL--Savings and Loan Holding Companies and Regulation 
MM--Mutual Holding Companies (Docket No. R-1429)

    Legal Authority: 5 U.S.C. 552; 5 U.S.C. 559; 5 U.S.C. 1813; 5 
U.S.C. 1817; 5 U.S.C. 1828; * * *
    Abstract: The Dodd-Frank Act Wall Street Reform and Consumer 
Protection Act (the Act) transferred responsibility for supervision of 
Savings and Loan Holding Companies (SLHCs) and their non-depository 
subsidiaries from the Office of Thrift Supervision (OTS) to the Board 
of Governors of the Federal Reserve System (Board), on July 21, 2011. 
The Act also transferred supervisory functions related to Federal 
savings associations and State savings associations to the Office of 
the Comptroller of the Currency (OCC) and the Federal Deposit Insurance 
Corporation (FDIC), respectively.
    The Board on August 12, 2011, approved an interim final rule for 
SLHCs, including a request for public comment. The interim final rule 
transferred from the OTS to the Board the regulations necessary for the 
Board to supervise SLHCs, with certain technical and substantive 
modifications. The interim final rule has three components: (1) New 
Regulation LL (part 238), which sets forth regulations generally 
governing SLHCs; (2) new Regulation MM (part 239), which sets forth 
regulations governing SLHCs in mutual form; and (3) technical 
amendments to existing Board regulations necessary to accommodate the 
transfer of supervisory authority for SLHCs from the OTS to the Board.
    The structure of interim final Regulation LL closely follows that 
of the

[[Page 1700]]

Board's Regulation Y, which governs bank holding companies, in order to 
provide an overall structure to rules that were previously found in 
disparate locations. In many instances interim final Regulation LL 
incorporated OTS regulations with only technical modifications to 
account for the shift in supervisory responsibility from the OTS to the 
Board. Interim final Regulation LL also reflects statutory changes made 
by the Dodd-Frank Act with respect to SLHCs, and incorporates Board 
precedent and practices with respect to applications processing 
procedures and control issues, among other matters.
    Interim final Regulation MM organized existing OTS regulations 
governing SLHCs in mutual form (MHCs) and their subsidiary holding 
companies into a single part of the Board's regulations. In many 
instances interim final Regulation MM incorporated OTS regulations with 
only technical modifications to account for the shift in supervisory 
responsibility from the OTS to the Board. Interim final Regulation MM 
also reflects statutory changes made by the Dodd-Frank Act with respect 
to MHCs,.
    The interim final rule also made technical amendments to Board 
rules to facilitate supervision of SLHCs, including to rules 
implementing Community Reinvestment Act requirements and to Board 
procedural and administrative rules. In addition, the Board made 
technical amendments to implement section 312(b)(2)(A) of the Act, 
which transfers to the Board all rulemaking authority under section 11 
of the Home Owner's Loan Act relating to transactions with affiliates 
and extensions of credit to executive officers, directors, and 
principal shareholders. These amendments include revisions to parts 215 
(Insider Transactions) and part 223 (Transactions with Affiliates) of 
Board regulations.
    The comment period with respect to the interim final rule closed on 
November 1, 2011, and the Board intends in the future to issue a 
finalized rule.
    Timetable:

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               Action                    Date            FR Cite
------------------------------------------------------------------------
Board Requested Comment.............   09/13/11  76 FR 56508
Board Expect Further Action.........   06/00/13  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Amanda K. Allexon, Senior Counsel, Federal Reserve 
System, Legal Division, Phone: 202 452-3818.
    RIN: 7100-AD80

FEDERAL RESERVE SYSTEM (FRS)

Long-Term Actions

525. Regulation KK--Margin and Capital Requirements for Covered Swap 
Entities (Docket No: R-1415)

    Legal Authority: 7 U.S.C. 6s; 15 U.S.C. 78 o-10
    Abstract: The Office of the Comptroller of the Currency, the 
Federal Reserve Board, the Federal Deposit Insurance Corporation, the 
Farm Credit Administration, and the Federal Housing Finance Agency (the 
Agencies) are requesting comment on a proposal 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 proposed rule implements sections 731 and 764 of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act, which 
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.
    Timetable:

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               Action                    Date            FR Cite
------------------------------------------------------------------------
Board Requested Comment.............   04/12/11  76 FR 27564
Comment Period End..................   07/11/11  76 FR 37029
Board Reopened Comment Period.......   10/02/12  77 FR 60057
Next Action Undetermined............  .........  .......................
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    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Stephanie Martin, Associate General Counsel, 
Federal Reserve System, Legal Division, Phone: 202 452-3198.
    RIN: 7100-AD74

FEDERAL RESERVE SYSTEM (FRS)

Completed Actions

526.  Regulations H and Y--Regulatory Capital Rules: 
Standardized Approach for Risk-Weighted Assets; Market Discipline and 
Disclosure Requirements (Docket R-1443)

    Legal Authority: 12 U.S.C. 248(a); 12 U.S.C. 321; 12 U.S.C. 322; 12 
U.S.C. 323; 12 U.S.C. 324; * * *
    Abstract: This Notice of Proposed Rulemaking (NPRM) includes 
proposed changes to the U.S. banking agencies' (the Office of the 
Comptroller of the Currency, the Board of Governors of the Federal 
Reserve System, and the Federal Deposit Insurance Corporation) general 
risk-based capital requirements for determining risk-weighted assets 
(that is, the calculation of the denominator of a banking 
organization's risk-based capital ratios). The proposed changes would 
revise and harmonize the agencies' rules for calculating risk-weighted 
assets to enhance risk sensitivity and address weaknesses identified 
over recent years, including by incorporating certain international 
capital standards as set forth by the Basel Committee on Banking 
Supervision. The Agencies also propose alternatives to credit ratings 
for calculating risk-weighted assets for certain assets, consistent 
with section 939A of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act of 2010. The revisions include methodologies for 
determining risk-weighted assets for residential mortgages, 
securitization exposures, and counterparty credit risk. The NPRM also 
would introduce disclosure requirements that would apply to top-tier 
banking organizations domiciled in the United States with $50 billion 
or more in total assets, including disclosures related to regulatory 
capital instruments.
    Timetable:

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               Action                    Date            FR Cite
------------------------------------------------------------------------
Merged With 7100 AD87...............   08/30/12  77 FR 53059
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Anna Lee Hewko, Assistant Director, Federal Reserve 
System, Division of Banking Supervision and Regulation, Phone: 202 530-
6260.
    RIN: 7100-AD88

[[Page 1701]]

527.  Regulations H and Y--Regulatory Capital Rules: Advanced 
Approaches Risk-Based Capital Rule; Market Risk Capital Rule (Docket 
No. R-1444)

    Legal Authority: 12 U.S.C. 248(a); 12 U.S.C. 321; 12 U.S.C. 322; 12 
U.S.C. 323
    Abstract: In this Notice of Proposed Rule-making (NPRM), the U.S. 
banking agencies are proposing to revise the advanced approaches risk-
based capital rule to incorporate certain aspects of ``Basel III: A 
Global Regulatory Framework for More Resilient Banks and Banking 
Systems'' (Basel III) that the agencies would apply only to advanced 
approach banking organizations. This NPR also proposes other changes to 
the advanced approaches rule that the agencies believe are consistent 
with changes made by the Basel Committee on Banking Supervision (BCBS) 
to its ``International Convergence of Capital Measurement and Capital 
Standards'' A Revised Framework'' (Basel II), as revised by the BCBS 
between 2006 and 2009, and with recent consultative papers published by 
the BCBS. The Agencies also propose to revise the advanced approaches 
risk-based capital rule to be consistent with Dodd-Frank Wall Street 
Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). These 
revisions include replacing references to credit ratings with 
alternative standards of creditworthiness consistent with section 939A 
of the Dodd-Frank Act. Also, the Board is proposing that the advanced 
approaches and market risk capital rules apply to top-tier savings and 
loan holding companies domiciled in the United States that meet the 
applicable thresholds. In addition, this NPRM would codify the market 
risk rule consistent with the proposed codification of the other 
regulatory capital rules across the three proposals.
    Timetable:

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               Action                    Date            FR Cite
------------------------------------------------------------------------
Merged With 7100 AD87...............   08/30/12  77 FR 53059
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Anna Lee Hewko, Assistant Director, Federal Reserve 
System, Division of Banking Supervision and Regulation, Phone: 202 530-
6260.
    RIN: 7100-AD89

528. Regulation OO--Securities Holding Companies (Docket No. R-1430)

    Legal Authority: 12 U.S.C. 1850a
    Abstract: The Federal Reserve Board (the Board) issued a final rule 
to implement section 618 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act which permits nonbank companies that own at 
least one registered securities broker or dealer, and that are required 
by a foreign regulator or provision of foreign law to be subject to 
comprehensive consolidated supervision, to register with the Board and 
subject themselves to supervision by the Board. The final rule is 
substantially the same as the proposed rule. The final rule outlines 
the requirements that a securities holding company must satisfy to make 
an effective election, including filing the appropriate form with the 
responsible Reserve Bank, providing all additional required information 
and satisfying the statutory waiting period of 45 days or such shorter 
period as the Board determines appropriate.
    Timetable:

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               Action                    Date            FR Cite
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Board Requested Comment.............   08/31/11  76 FR 54717
Board Issued Final Rule.............   06/04/12  77 FR 32881
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    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Amanda K. Allexon, Senior Counsel, Federal Reserve 
System, Legal Division, Phone: 202 452-3818
    RIN: 7100-AD81

[FR Doc. 2012-31517 Filed 1-7-13; 8:45 am]
BILLING CODE 6210-01-P