[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