§265.7. Functions delegated to the Director of the Division of Supervision and Regulation.
12 C.F.R. § 265.7
The Director of the Division of Supervision and Regulation (or the Director's delegatee) is authorized:
Procedure—
Cease and desist orders. To refuse, with the prior concurrence of the appropriate Reserve Bank and the General Counsel, an application to the Board to stay, modify, terminate, or set aside any effective cease and desist order previously issued by the Board under section 8(b) of the Federal Deposit Insurance Act (12 U.S.C. 1818(b)), or any written agreement between the Board or the Reserve Bank and a bank holding company or any nonbanking subsidiary thereof, a savings and loan holding company or any nondepository subsidiary thereof, or a State member bank.
Modification of commitments or conditions. To grant or deny requests for modifying, including extending the time for, performing a commitment or condition relied on by the Board or its delegatee in taking any action under the Bank Holding Company Act, the Home Owners' Loan Act, section 18(c) of the Federal Deposit Insurance Act, the Change in Bank Control Act, the Federal Reserve Act, the International Banking Act, or the Dodd-Frank Wall Street Reform and Consumer Protection Act. In acting on such requests, the Director may take into account changed circumstances and good faith efforts to fulfill the commitments or conditions, and shall consult with the directors of other interested divisions where appropriate. The Director may not take any action that would be inconsistent with or result in an evasion of the provisions of the Board's original action.
Processing extensions. With the concurrence of the General Counsel, to extend the processing periods for the following applications and notices:
The 60-day processing period for an acquisition of a bank or bank holding company filed under section 3 of the Bank Holding Company Act (12 U.S.C. 1842), pursuant to § 225.15(d)(2) of Regulation Y (12 CFR 225.15(d)(2));
The 60-day processing period for a nonbanking proposal filed under section 4 of the Bank Holding Company Act (12 U.S.C. 1843), pursuant to:
Section 225.24(d)(2) of Regulation Y (12 CFR 225.24(d)(2)); and
Section 4(j)(1)(C) of the Bank Holding Company Act (12 U.S.C. 1843(j)(1)(C)) and § 225.24(d)(3) of Regulation Y (12 CFR 225.24(d)(3));
The 60-day processing period for an acquisition of a savings association or savings and loan holding company filed under section 10(e) of the Home Owners' Loan Act (12 U.S.C. 1467a(e)), pursuant to § 238.14(g)(2) of Regulation LL (12 CFR 238.14(g)(2));
The 60-day processing period for a nonbanking proposal filed under section 10(c) of the Home Owners' Loan Act (12 U.S.C. 1467a(c)), pursuant to:
Section 238.53(f)(2) of Regulation LL (12 CFR 238.53(f)(2)); and
Section 238.53(f)(3) of Regulation LL (12 CFR 238.53(f)(3)); and
For an additional 180 days, the 180-day period within which final Board action is required on an application pursuant to section 7(d) of the International Banking Act (12 U.S.C. 3105(d)).
Notice of insufficient capital. To issue, with the concurrence of the General Counsel, a notice that a State member bank, bank holding company, or savings and loan holding company has insufficient capital and which directs the bank or company to file with its regional Reserve Bank a capital improvement plan under subpart E of the Board's Rules of Practice for Hearings (12 CFR part 263, subpart E).
Obtaining possession or control of securities; extending time period. To approve, under section 403.5(g) of the Treasury Department regulations (17 CFR 403.5) implementing the Government Securities Act of 1986, as amended (Pub. L. 95-571), the application of a member bank, a State branch or agency of a foreign bank, a foreign bank, or a commercial lending company owned or controlled by a foreign bank, to extend for one or more limited periods commensurate with the circumstances the 30-day time period specified in 17 CFR 403.5(c)(1)(iii), provided that the Director of the Division of Supervision and Regulation is satisfied that the applicant is acting in good faith and that exceptional circumstances warrant such action.
Availability of information—
Confidential supervisory information. To make available information of the Board of the nature and in the circumstances described in § 261.22 of the Board's Rules Regarding Availability of Information (12 CFR 261.22).
Freedom of Information Act; availability of information. To make available, under the Board's Rules Regarding Availability of Information (12 CFR part 261), reports and other information of the Board acquired pursuant to the Board's Regulations G, T, U, and X (12 CFR parts 207, 220, 221, 224) of the nature and in circumstances described in § 261.15(a)(4) and (8) of these rules.
Bank holding companies; savings and loan holding companies; financial holding companies; change in bank control; mergers—
Bank holding company and savings and loan holding company registration forms and annual reports. To promulgate registration forms and annual reports and other forms for use in connection with the Bank Holding Company Act and the Home Owners' Loan Act, after receiving clearance from the Office of Management and Budget (where necessary), under section 5 of the Bank Holding Company Act (12 U.S.C. 1844) or section 10 of the Home Owners' Loan Act (12 U.S.C. 1467a), and in accordance with 5 U.S.C. 553.
Emergency action. To take actions the Reserve Bank could take under this part at § 265.20(c)(2)(ii) if immediate or expeditious action is required to avert failure of a bank or savings association or because of an emergency pursuant to sections 3(a) and 4(c)(8) of the Bank Holding Company Act (12 U.S.C. 1842(a), 1843(c)(8)), section 10(c) of the Home Owners' Loan Act (12 U.S.C. 1467a(c)), or the Change in Bank Control Act (12 U.S.C. 1817(j)).
Waiver of notice. To waive, dispense with, modify or excuse the failure to comply with the requirement for publication and solicitation of public comment regarding a notice filed under the Change in Bank Control Act (12 U.S.C. 1817(j)), with the concurrence of the General Counsel, provided a written finding is made that such disclosure would seriously threaten the safety or soundness of a bank holding company, savings and loan holding company, or a bank.
Notices for addition or change of directors or officers. Under section 914(a) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1831i) and subpart H of Regulation Y (12 CFR part 225, subpart H) or subpart H of Regulation LL (12 CFR part 238, subpart H), provided that no senior officer or director or proposed senior officer or director of the notificant is also a director of the Reserve Bank or a branch of the Reserve Bank:
To determine the informational sufficiency of notices filed pursuant to § 225.72 of Regulation Y (12 CFR 225.72) or § 238.73 of Regulation LL (12 CFR 238.73); and
To waive the prior notice requirements of that section.
ERISA violations. To provide the Department of Labor written notification of possible significant violations of the Employee Retirement Income Security Act (ERISA) (29 U.S.C. 1001 et seq.) by bank holding companies or savings and loan holding companies, in accordance with section 3004(b) of ERISA (29 U.S.C. 1204(b)) and the Interagency Agreement adopted to implement its provisions.
Appraisal not required. To determine pursuant to 12 CFR 225.63(a)(13) that the services of an appraiser are not necessary in order to protect Federal financial and public policy interests in real estate-related financial transactions or to protect the safety and soundness of an institution.
Financial holding company corrective action agreements. With the concurrence of the General Counsel, to authorize a financial holding company, or a foreign bank that has elected to be treated as a financial holding company, that is subject to section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)):
To acquire shares of a company pursuant to authority in section 4(k) of the Bank Holding Company Act (12 U.S.C. 1843(k)) in order to continue to engage in the following categories of existing activities which require recurring transactions in the ordinary course:
Merchant banking,
Underwriting dealing in, or making a market in securities;
Sponsoring, organizing, and managing customer-driven investment funds; and
Hedging risks incurred in ongoing permissible activities;
To extend the time within which a financial holding company must execute a corrective agreement under section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m));
To extend the time limits in, or otherwise modify, corrective agreements under section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m));
To determine not to make public any corrective agreement under section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)); and
To acquire shares or assets pursuant to section 4(k) of the Bank Holding Company Act (12 U.S.C. 1843(k)) without prior Board approval up to the following thresholds:
$25 million in consideration for a single transaction;
$125 million in consideration over the past 12 months; and
$400 million in consideration over the entire period the financial holding company is subject to the agreement required by section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)).
Complementary physical commodity trading activities. With the concurrence of the General Counsel, to approve requests by financial holding companies to engage in complementary physical commodity trading activities, pursuant to section 4(k)(1)(B) of the Bank Holding Company Act (12 U.S.C. 1843(k)(1)(B)), as an activity that is complementary to permissible commodity derivatives activities, provided that the proposal meets the conditions imposed by the Board approving previous requests and the proposal does not raise any significant legal, policy, or supervisory issues.
Extension of merchant banking investment holding periods. With the concurrence of the General Counsel, to approve requests by financial holding companies to hold merchant banking investments beyond the standard time periods established in § 225.172(b)(4) of Regulation Y (12 CFR 225.172(b)(4)), where no significant legal, policy, or supervisory issues are raised by the specific request.
Single-counterparty credit limits rule exemptions. With the concurrence of the General Counsel, to act on exemption requests under section 165(e) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5365(e)) and subparts H and Q of Regulation YY (12 CFR part 252, subparts H and Q) where no significant legal, policy, or supervisory issues are raised.
Stress tests.
Jointly with the Director of the Division of Financial Stability, with the concurrence of the Chair of the Board's Committee on Supervision and Regulation:
To develop and issue scenarios, including, but not limited to, the baseline scenario and the severely adverse scenario, that the Board would use to conduct analyses under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 252.44) and that a company would use to conduct its stress tests under § 238.143 of Regulation LL (12 CFR 238.143) or § 252.14 or § 252.54 of Regulation YY (12 CFR 252.14 or 252.54), as appropriate, provided that no significant policy issues are raised; and
To develop and issue additional scenarios or additional components for use in the severely adverse scenario under §§ 238.132(b) and 238.143(b)(2) and (3) of Regulation LL (12 CFR 238.132(b) and 238.143(b)(2) and (b)(3)), and §§ 252.14(b)(2) and (3), 252.44(b), and 252.54(b)(2) and (b)(3) of Regulation YY (12 CFR 252.14(b)(2) and (3), 252.44(b), and 252.54(b)(2) and (3)), that the Board would use to conduct analyses under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 225.44) and that a company would use to conduct its stress tests under § 238.143 of Regulation LL (12 CFR 238.143) or § 252.14 or § 252.54 of Regulation YY (12 CFR 252.14 or 252.54), as appropriate, provided that no significant policy issues are raised;
With the concurrence of the Chair of the Committee on Supervision and Regulation—
After consultation with the Board, to convey to a company the summary of the results of the Board's analyses of the company under § 238.134 of Regulation LL (12 CFR 238.134) or § 252.46 of Regulation YY (12 CFR 252.46);
After consultation with the Board and the Director of the Division of Financial Stability, to determine the content and timing of the public disclosure of the results of the Board's analyses of a company under § 238.134 of Regulation LL (12 CFR 238.134) or § 252.46 of Regulation YY (12 CFR 252.46);
To determine any appropriate updates to a company's resolution plan based on the results of the Board's analyses of the company under § 252.47 of Regulation YY (12 CFR 252.47); and
To require a company to include one or more additional components in its severely adverse scenario in its stress test based on the company's financial condition, size, complexity, risk profile, scope of operations, or activities, or risks to the U.S. economy pursuant to § 238.143(b)(2) of Regulation LL (12 CFR 238.143(b)(2)) and §§ 252.14(b)(2) and 252.54(b)(2) of Regulation YY (12 CFR 252.14(b)(2) and 252.54(b)(2));
After consultation with the Chair of the Committee on Supervision and Regulation—
To evaluate whether a company has the capital necessary to absorb losses and continue its operation under baseline and severely adverse scenarios, and any additional scenarios, under § 238.134 of Regulation LL (12 CFR 238.134) or § 252.46 of Regulation YY (12 CFR 252.46);
To conduct annual analyses of a company under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 252.44); and
To require a company with significant trading activity, as specified in the Capital Assessments and Stress Testing report (FR Y-14), or a subsidiary of such company, to include a trading and counterparty component in its severely adverse scenario in its stress test pursuant to § 238.143(b)(2) of Regulation LL (12 CFR 238.143(b)(2)) and §§ 252.14(b)(2) and 252.54(b)(2) of Regulation YY (12 CFR 252.14(b)(2) and 252.54(b)(2));
In consultation with the General Counsel, to respond to a company's request for reconsideration that the company is required to include one or more additional components in its severely adverse scenario, including a trading or counterparty component, or to use one or more additional scenarios under § 238.143(b)(4) of Regulation LL (12 CFR 238.143(b)(4)) and §§ 252.14(b)(4) and 252.54(b)(4) of Regulation YY (12 CFR 252.14(b)(4) and 252.54(b)(4)); and
The Director of the Division of Supervision and Regulation is also authorized to—
Notify a company of the determination that the company is required to include one or more additional components in its severely adverse scenario, including a trading or counterparty component, or to use one or more additional scenarios under § 238.143(b)(4) of Regulation LL (12 CFR 238.143(b)(4)) and §§ 252.14(b)(4) and 252.54(b)(4) of Regulation YY (12 CFR 252.14(b)(4) and 252.54(b)(4));
Coordinate with the appropriate primary financial regulatory agencies in conducting the analyses under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 252.44);
Provide the as-of date of any scenarios, additional scenarios, additional components, and the relevant data under § 238.143(b) of Regulation LL (12 CFR 238.143(b)), or § 252.14(b) or § 252.54(b) of Regulation YY (12 CFR 252.14(b) or 252.54(b)), as appropriate;
Extend (and in the case of nonbank financial companies supervised by the Board or savings and loan holding companies, accelerate) the compliance date for companies under § 238.131 or § 238.142 of Regulation LL (12 CFR 238.131 or 238.142), or § 252.13, § 252.43, or § 252.53 of Regulation YY (12 CFR 252.13, 252.43, or 252.53), as appropriate;
Extend any or all of the following time periods— (1) The time period by which a company must conduct its stress test or the as-of date of the data under § 238.143(a) of Regulation LL (12 CFR 238.143(a)), or § 252.14(a) or § 252.54(a) of Regulation YY (12 CFR 252.14(a) or 252.54(a)), as appropriate;
(2) The time period by which a company must file a report to the Board under § 238.145(a) of Regulation LL (12 CFR 238.145(a)), or § 252.16(a) or § 252.57(a) of Regulation YY (12 CFR 252.16(a) or 252.57(a)), as appropriate; and
(3) The time period by which a company must disclose a summary of results of its stress tests under § 238.146 of Regulation LL (12 CFR 238.146), or § 252.17 or § 252.58 of Regulation YY (12 CFR 252.17 or 252.58), as appropriate;
Require a company to submit additional information on a consolidated basis pursuant to § 238.133 of Regulation LL (12 CFR 238.133) or § 252.45 of Regulation YY (12 CFR 252.45) that the Director determines necessary to ensure that the Board has sufficient information to conduct its analysis under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 252.44) or as necessary to project a company's pro forma financial condition;
Require a company to submit additional information under § 238.145 of Regulation LL (12 CFR 238.145), or § 252.16 or § 252.57 of Regulation YY (12 CFR 252.16 or 252.57), as appropriate; and
Determine that disclosures made by a bank holding company do not adequately capture the potential impact of scenarios on the capital of a State member bank pursuant to § 252.17 of Regulation YY (12 CFR 252.17) and require that the State member bank make the same disclosure as required for State member banks that are not subsidiaries of bank holding companies.
Volcker Rule conformance period extensions. With the concurrence of the General Counsel, to approve (but not deny) a request by a new banking entity for an extension of time to conform its activities and investments to the requirements of section 13 of the Bank Holding Company Act and its implementing regulations, pursuant to § 225.181(a)(3) of Regulation Y (12 CFR 225.181(a)(3)), provided that the approval criteria thereunder are met and the request raises no significant policy or supervisory issues.
International banking—
Foreign bank reports. To require submission of a report of condition respecting any foreign bank in which a member bank holds stock acquired under § 211.8(b) of Regulation K (12 CFR 211.8(b)), pursuant to section 25 of the Federal Reserve Act (12 U.S.C. 602).
Edge corporation reports. To require submission and publication of reports by an Edge corporation under section 25A of the Federal Reserve Act (12 U.S.C. 625).
International banking matters. With the concurrence of the General Counsel, to approve applications, notices, exemption requests, waivers and suspensions, and other related matters under Regulation K (12 CFR part 211), where such matters do not raise any significant legal, supervisory, or policy issues.
Allocated transfer risk reserves. To determine the need for establishing and the amount of any allocated transfer risk reserve against specific international assets, and notify the banking institutions of the determination and the amount of the reserve and whether the reserve may be reduced under subpart D of Regulation K (12 CFR part 211, subpart D).
Conduct and coordination of examinations. To authorize the conduct of examinations of the U.S. offices and affiliates of foreign banks as provided in sections 7(c) and 10(c) of the International Banking Act (12 U.S.C. 3105(c) and 3107(c)), and, where appropriate, to coordinate those examinations with examinations of the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the State entity that is authorized to supervise or regulate a State branch, State agency, commercial lending company, or representative office.
Election by a foreign bank to be treated as financial holding company. With the concurrence of the General Counsel, to determine that an election by a foreign bank to become or to be treated as a financial holding company is effective, provided that:
The foreign bank meets the criteria for becoming or being treated as a financial holding company; and
The election raised no significant policy or supervisory issues.
Enhanced prudential standards rule for foreign banking organizations.
With the concurrence of the Chair of the Committee on Supervision and Regulation and the General Counsel, to grant or deny a request to permit a foreign banking organization to use an alternative organizational structure or not transfer its ownership interest in a U.S. subsidiary to its intermediate holding company under subpart O of Regulation YY (12 CFR part 252, subpart O), subject, as appropriate, to any commitments or conditions, provided that the request raises no significant policy or supervisory issues.
In consultation with the General Counsel, to—
Commitments. Grant or deny requests for modifying, including extending the time for, performing a commitment or condition relied on by the Board or its delegatee in taking any action under subparts M through O of Regulation YY (12 CFR part 252, subparts M-O). In acting on such requests, the Director may take into account changed circumstances and good faith efforts to fulfill the commitments or conditions, and shall consult with the directors of other interested divisions where appropriate. The Director may not take any action that would be inconsistent with or result in an evasion of the provisions of the Board's original action;
Stress testing. (1) Determine that an asset should not qualify as an eligible asset under §§ 252.146 and 252.158 of Regulation YY (12 CFR 252.146 and 252.158);
(2) Determine that a foreign banking organization or foreign savings and loan holding company must meet the additional standards, respectively, under § 238.162(b) of Regulation LL (12 CFR 238.162(b)) and §§ 252.146 and 252.158 of Regulation YY (12 CFR 252.146 and 252.158);
(3) Approve an enterprise-wide stress test and determine that it meets the stress test requirements under § 238.162(b) of Regulation LL (12 CFR 238.162(b)) and §§ 252.146 and 252.158 of Regulation YY (12 CFR 252.146 and 252.158);
(4) Require the U.S. branches and agencies of a foreign banking organization and, if the foreign banking organization has not established a U.S. intermediate holding company, any subsidiary of the foreign banking organization, to maintain a liquidity buffer or be subject to intragroup funding restrictions under § 252.158(d)(3) of Regulation YY (12 CFR 252.158(d)(3));
Capital. Determine that a foreign banking organization would meet or exceed capital adequacy standards on a consolidated basis that are consistent with the Basel Capital Framework were the foreign banking organization subject to such standards under §§ 252.143(a)(2) and 252.154(a)(2) of Regulation YY (12 CFR 252.143(a)(2) and 252.154(a)(2));
Risk management. Approve an alternative reporting structure for a U.S. chief risk officer based on circumstances specific to the foreign banking organization under §§ 252.144(c)(3)(iii) and 252.155(b)(3)(iii) of Regulation YY (12 CFR 252.144(c)(3)(iii) and 252.155(b)(3)(iii));
Liquidity. (1) Require a foreign banking organization to calculate the collateral positions for its combined U.S. operations more frequently than required under § 252.156(g)(1)(i) of Regulation YY (12 CFR 252.156(g)(1)(i));
(2) Require a foreign banking organization to perform stress testing more frequently than is required under § 252.157(a)(2) of Regulation YY (12 CFR 252.157(a)(2)); and
Additional information. Require a foreign banking organization to provide additional information under §§ 252.147(a)(3), 252.153(a)(3) and 252.158(c)(2) of Regulation YY (12 CFR 252.147(a)(3), 252.153(a)(3) and 252.158(c)(2)), as appropriate.
Member banks—
Membership certification to FDIC. To certify, under section 4(b) of the Federal Deposit Insurance Act (12 U.S.C. 1814(b)), to the Federal Deposit Insurance Corporation that the factors specified in section 6 of the Federal Deposit Insurance Act (12 U.S.C. 1816) were considered with respect to the admission of a State-chartered bank to Federal Reserve membership.
Dollar exchange. To permit any member bank to accept drafts or bill of exchange drawn upon it for the purpose of furnishing dollar exchange under section 13(12) of the Federal Reserve Act (12 U.S.C. 373).
ERISA violations. To provide to the Department of Labor written notification of possible significant violations of the Employee Retirement Income Security Act (ERISA) (29 U.S.C. 1001 et seq.) by member banks, in accordance with section 3004(b) of ERISA (29 U.S.C. 1204(b)) and the Interagency Agreement adopted to implement its provisions.
Examiners. To select or approve the appointment of Federal Reserve examiners, assistant examiners, and special examiners for the purpose of making examinations for or by the direction of the Board under 12 U.S.C. 325, 338, 625, 1844(c), and 3105(c)(1).
Capital stock reduction; branch applications; declaration of dividends; investment in bank premises. To exercise the functions described in §§ 265.20(e)(5) and (11) (reductions in capital and early retirement of subordinated debt) when the conditions specified in those sections preclude a Reserve Bank from acting on a member bank's request for action or when the Reserve Bank concludes that it should not take action, and to exercise the functions in § 265.20(e)(3), (4), and (7) (approving branch applications, declaration of dividends, and investment in bank premises) in cases in which the Reserve Bank concludes that it should not take action.
Security devices. To exercise the functions described in § 265.20(e)(8) in those cases in which the appropriate Reserve Bank concludes that it should not take action for good cause.
Public welfare investments.
To permit a State member bank to make a public welfare investment in accordance with section 9(23) of the Federal Reserve Act (12 U.S.C. 338a) in any case in which the appropriate Reserve Bank does not have delegated authority to act, unless the proposal does not satisfy § 208.22(b)(1) of Regulation H (12 CFR 208.22(b)(1)). In acting on such requests, the Director shall consult with the directors of other interested divisions where appropriate; and
To determine, in connection with acting on a proposal pursuant to delegated authority as set forth in paragraph (e)(7)(i) of this section, that the aggregate amount of a State member bank's public welfare investments will not pose a significant risk to the deposit insurance fund in accordance with section 9(23) of the Federal Reserve Act (12 U.S.C. 338a).
Prior approval for capital distributions. With the concurrence of the Vice Chair for Supervision, to approve (but not deny) a request to make a distribution pursuant to § 217.303(g) of the Board's Regulation Q (12 CFR 217.303(g)).
Bank-affiliate transactions. With the concurrence of the General Counsel, to approve, or to make the requisite findings for approval of, requests for an exemption from the requirements of section 23A of the Federal Reserve Act (12 U.S.C. 371c) and the Board's Regulation W (12 CFR part 223) for the purchase of assets by a State bank or other insured depository institution from an affiliate, provided that the purchase of assets is:
Part of a one-time corporate reorganization;
Does not involve the purchase of low-quality assets;
Is accompanied by a commitment to repurchase any assets that have become low quality within two years of the transfer; and
Has been approved by the Federal Deposit Insurance Corporation and the institution's appropriate Federal banking agency.
Securities—
Registration statements by member banks. Under section 12(g) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(g)):
To accelerate the effective date of a registration statement filed by a member bank with respect to its securities;
To accelerate termination of the registration of a security that is no longer held of record by 300 persons; and
To extend the time for filing a registration statement by a member bank.
Exemption from registration. To issue notices with respect to application by a State member bank for exemption from registration under section 12(h) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(h)).
Accelerating registration of security on national securities exchange. To accelerate the effective date of an application by a State member bank for registration of a security on a national securities exchange under section 12(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(d)).
Unlisted trading in security of a State member bank. To issue notices with respect to an application by a national securities exchange for unlisted trading privileges in a security of a State member bank under section 12(f) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(f)).
Transfer agent registration; acceleration; withdrawal or cancellation.
To accelerate, under section 17A(c)(2) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78q-1(c)(2)), the effective date of a registration statement for transfer agent activities filed by a member bank or a subsidiary thereof, a bank holding company or a subsidiary thereof that is a bank as defined in section 3(a)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) other than a bank specified in clause (i) or (iii) of section 3(a)(34)(B) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(34)(B)).
To withdraw or cancel, under section 17A(c)(3)(C) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78q-1(c)(4)(B)), the transfer agent registration of a member bank or a subsidiary thereof, a bank holding company, or a subsidiary thereof that is a bank as defined in section 3(a)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) other than a bank specified in clause (i) or (iii) of section 3(a)(34)(B) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(34)(B)), that has filed a written notice of withdrawal with the Board or upon a finding that such transfer agent is no longer in existence or has ceased to do business as a transfer agent.
Proxy solicitation; financial statements.
To permit the mailing of proxy and other soliciting materials by a State member bank before the expiration of the time prescribed therein under § 208.36 of Regulation H (12 CFR 208.36).
To permit the omission of financial statements from reports by a State member bank, or to require other financial statements in addition to, or in substitution for, the statements required therein under § 208.36 of Regulation H (12 CFR 208.36).
Municipal securities dealers. Under section 23 of the Securities Exchange Act of 1934 (15 U.S.C. 78w).
To grant or deny requests for waiver of examination and waiting period requirements for municipal securities principals and representatives under Municipal Securities Rulemaking Board Rule G-3;
To grant or deny requests for a determination that a natural person or municipal securities dealer subject to a statutory disqualification is qualified to act as a municipal securities representative or dealer under Municipal Securities Rulemaking Board Rule G-4;
To approve or disapprove clearing arrangements under Municipal Securities Rulemaking Board Rule G-8, in connection with the administration of these rules for municipal securities dealers for which the Board is the appropriate regulatory agency under section 3(a)(34) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(34)).
Making reports available to SEC. To make available, upon request, to the Securities and Exchange Commission reports of examination of transfer agents, clearing agencies, and municipal securities dealers for which the Board is the appropriate regulatory agency for use by the Commission in exercising its supervisory responsibilities under the Act under section 17(c)(3) of the Securities Exchange Act of 1934 (15 U.S.C. 78q(c)(3)).
Issuing examination manuals, forms, and other materials. To issue examination or inspection manuals, registration, report, agreement, and examination forms, guidelines, instructions, and other similar materials for use in administering sections 7, 8, 15B, and 17A(c) of the Securities Exchange Act of 1934 (15 U.S.C. 78g, 78h, 78o-4, and 78q-1(c)).
Lists of OTC and foreign margin stocks. To approve issuance of the lists of OTC margin stocks and foreign margin stocks and add, omit, or remove any stock in circumstances indicating that such change is necessary or appropriate in the public interest under § 207.6(d) of Regulation G (12 CFR 207.6(d)), § 220.17(f) of Regulation T (12 CFR 220.17(f)), or § 221.7(d) of Regulation U (12 CFR 221.7(d)).
Golden parachute payments. With the concurrence of the General Counsel, to approve an application to make a golden parachute payment or enter into an agreement to make a golden parachute payment under 12 CFR part 359.
Prompt corrective action. With the approval of the General Counsel, to take the following actions pursuant to prompt corrective action under the rules implementing section 38 of the Federal Deposit Insurance Act (12 U.S.C. 1831o) in connection with any institution or person, except a critically undercapitalized institution:
Capital categories, capital restoration plans, and discretionary supervisory actions pursuant to §§ 208.42 through 208.44 of Regulation H (12 CFR 208.42 through 208.44);
Notices and directives pursuant to § 263.202 of the Board's Rules of Practice for Hearings (12 CFR 263.202);
Reclassification of a capital category based on criteria other than capital pursuant to § 263.203 of the Board's Rules of Practice for Hearings (12 CFR 263.203); and
Dismissal of directors or senior officers pursuant to § 263.204 of the Board's Rules of Practice for Hearings (12 CFR 263.204).
Assessments for bank holding companies, savings and loan holding companies, and nonbank financial companies supervised by the Board. In consultation with the General Counsel, to take actions pursuant to Regulation TT (12 CFR part 246) to determine the elements of the assessment formula for each assessment period including the assessment rate, the amount of the assessment basis, and each company's total assessable assets; to determine the amount of assessment for each assessed company, including allowing for pro-rata adjustments, payment of a lesser amount than would otherwise be required pursuant to the reservation of authority, and responding to an appeal by revising the assessment amount; to notify the assessed companies of the assessment; and to publish information regarding calculation of the assessments for each assessment period (including a description of how the assessment basis was determined) on the Board's public website.
Capital plans.
To take the following actions (or to provide concurrence to the appropriate Reserve Bank, where appropriate):
To allow a bank holding company or savings and loan holding company to submit its capital plan after the 5th of January of a given year;
To object, in whole or in part, to the capital plan or provide the bank holding company or savings and loan holding company with a notice of non-objection to the capital plan;
To direct a bank holding company or savings and loan holding company to revise and resubmit its capital plan if:
The capital plan is incomplete;
There has been or will be a material change in the bank holding company's or savings and loan holding company's risk profile, financial condition, or corporate structure;
The stressed scenarios developed by the bank holding company or savings and loan holding company are not sufficiently stressed; or
The capital plan or bank holding company or savings and loan holding company raise any issues that would cause the Board or the Reserve Bank to object to the capital plan;
To waive the requirement that a bank holding company or savings and loan holding company resubmit its entire capital plan with respect to those portions of the plan that are unchanged;
To extend or shorten the 30-day period for resubmission of a capital plan;
To determine that a bank holding company or savings and loan holding company is required to obtain prior approval for a capital distribution that would result in a material adverse change to the organization's capital or liquidity structure or because earnings were materially underperforming projections;
To notify a bank holding company or savings and loan holding company in writing that it may not take advantage of the prior approval exception for well-capitalized bank holding companies or savings and loan holding companies; or
To approve or disapprove, within 30 days of receipt of a complete request, a proposed capital distribution; and
To affirm or withdraw objection to a capital plan based on a bank holding company's or savings and loan holding company's written request to reconsider an objection to a capital plan.
With the concurrence of the Chair of the Committee on Supervision and Regulation, and after consultation with the Board and the Director of the Division of Financial Stability, to determine the content and timing of the public disclosure of the Board's decision to object or not object to a bank holding company's or savings and loan holding company's capital plan and the summary of the Board's analyses of that company, under § 225.8 of Regulation Y (12 CFR 225.8).
Jointly with the Director of the Division of Financial Stability, with the concurrence of the Vice Chair for Supervision:
To provide a firm subject to the Board's capital plan rules with notice of its stress capital buffer requirement and an explanation of the results of the supervisory stress test pursuant to §§ 225.8(h)(1) of Regulation Y (12 CFR 225.8(h)(1)) and 238.170(h)(1) of Regulation LL (12 CFR 238.170(h)(1)); and
To provide a firm subject to the Board's capital plan rules with its final stress capital buffer requirement and confirmation of its final planned capital distributions pursuant to §§ 225.8(h)(4)(i) of Regulation Y (12 CFR 225.8(h)(4)(i)) and 238.170(h)(4)(i) of Regulation LL (12 CFR 238.170(h)(4)(i)).
Capital adequacy—
Delegations regarding the general provisions of subpart A of Regulation Q (12 CFR part 217, subpart A).
With the concurrence of the Chair of the Committee on Supervision and Regulation, and after consultation with the General Counsel:
To determine under § 217.1(d)(2)(ii) of Regulation Q (12 CFR 217.1(d)(2)(ii)) whether a capital element may be included in a company's common equity tier 1 capital, additional tier 1 capital, or tier 2 capital consistent with the loss absorption capacity of the element and in accordance with § 217.20(e) of Regulation Q (12 CFR 217.20(e)); and
To determine under the definition of “financial institution” in § 217.2 of Regulation Q (12 CFR 217.2) whether a company is a financial institution based on its activities.
After consultation with the General Counsel—
To require under § 217.1(d)(1) of Regulation Q (12 CFR 217.1(d)(1)) a company to hold an amount of regulatory capital greater than otherwise required under Regulation Q because the company's capital requirements under Regulation Q are not commensurate with the company's credit, market, operational or other risks;
To determine under § 217.1(d)(2)(i) of Regulation Q (12 CFR 217.1(d)(2)(i)) whether an element of capital must be excluded in whole or in part from capital because the capital element has characteristics or terms that diminish its ability to absorb losses, or otherwise presents safety and soundness concerns;
To require under § 217.1(d)(3) of Regulation Q (12 CFR 217.1(d)(3)) that a company assign a different risk-weighted asset amount to an exposure or deduct the amount of the exposure from its regulatory capital because the risk-weighted asset amount calculated under Regulation Q for the exposure is not commensurate with the risks associated with the exposure;
To determine under § 217.1(d)(4) of Regulation Q (12 CFR 217.1(d)(4)) whether the leverage exposure amount, or the amount reflected in a company's reported average total consolidated assets, for an on- or off-balance sheet exposure (under § 217.10 of Regulation Q (12 CFR 217.10)) is inappropriate for the exposure(s) or the circumstances of the company, and, based on this determination, require the company to adjust this amount in the numerator and the denominator for purposes of the company's leverage ratio calculations;
To determine under § 217.1(d)(5) of Regulation Q (12 CFR 217.1(d)(5)) whether the risk-based capital treatment for an exposure, or the treatment provided to an entity that is not consolidated on a company's balance sheet, is commensurate with the risk of the exposure and the relationship of the company to the entity, and, based on this determination, require the company to treat the exposure or entity as if it were consolidated on the company's balance sheet;
With respect to any deduction or limitation required under Regulation Q, to require under § 217.1(d)(6) of Regulation Q (12 CFR 217.1(d)(6)) a different deduction or limitation provided that such alternative deduction or limitation is commensurate with the company's risk and consistent with safety and soundness;
To approve a request by a Board-regulated institution to make or change an election, or a choice of treatment, under § 217.1(g)(2)(ii) of Regulation Q (12 CFR 217.1(g)(2)(ii)); and
To review and adjust estimated total consolidated assets under the definition of “insurance bank holding company” or “insurance savings and loan holding company” in § 217.2 of Regulation Q (12 CFR 217.2) or under § 217.601(b)(2) of Regulation Q (12 CFR 217.601(b)(2)).
To determine under paragraph (5) of the definition of “distribution” in § 217.2 of Regulation Q (12 CFR 217.2) whether a transaction is in substance a distribution of capital;
To act on a request from a company under the definition of “eligible credit derivative” in § 217.2 of Regulation Q (12 CFR 217.2) to find that a credit derivative (other than a credit default swap, nth-to-default swap, or total return swap) should be considered an eligible credit derivative;
To determine under the definition of “main index” in § 217.2 of Regulation Q (12 CFR 217.2) whether an index is a main index because the equities represented by the index have comparable liquidity, depth of market, and size of bid-ask spreads as equities in the Standard & Poor's 500 Index and FTSE All-World Index;
To determine under the definition of “multilateral development bank” in § 217.2 of Regulation Q (12 CFR 217.2) whether a multilateral lending institution or regional development bank poses a comparable credit risk to other multilateral development banks;
To determine under the definition of “qualifying central counterparty” in § 217.2 of Regulation Q (12 CFR 217.2) whether a central counterparty meets the requirements for qualification as a qualifying central counterparty;
To determine under paragraph (8) of the definition of “traditional securitization” in § 217.2 of Regulation Q (12 CFR 217.2) whether a transaction is not a traditional securitization based on the transaction's leverage, risk profile, or economic substance; and
To determine under paragraph (9) of the definition of “traditional securitization” in § 217.2 of Regulation Q (12 CFR 217.2) whether a transaction is a traditional securitization based on the transaction's leverage, risk profile, or economic substance.
Delegation regarding the capital ratio requirements and buffers in subpart B of Regulation Q (12 CFR part 217, subpart B). To act on a request under § 217.11(a)(4)(iv) of Regulation Q (12 CFR 217.11(a)(4)(iv)) to permit a company to make a capital distribution or discretionary bonus payment that would otherwise not be permissible.
Delegations regarding the definition of capital in subpart C of Regulation Q (12 CFR part 217, subpart C).
With the concurrence of the Chair of the Committee on Supervision and Regulation, and after consultation with the General Counsel, to act on a request from a company under § 217.20(e)(1) of Regulation Q (12 CFR 217.20(e)(1)) to include a capital element in its common equity tier 1 capital, additional tier 1 capital, or tier 2 capital.
To determine under § 217.20(c)(1)(v)(C) and (d)(1)(v)(C) of Regulation Q (12 CFR 217.20(c)(1)(v)(C) and (d)(1)(v)(C)) whether a company would continue to hold capital commensurate to its risk following the exercise of a call option;
To consult with the other banking agencies under § 217.20(e)(2) of Regulation Q (12 CFR 217.20(e)(2)) when considering whether a company may include a regulatory capital element in its common equity tier 1 capital, additional tier 1 capital, or tier 2 capital;
To make publicly available under § 217.20(e)(3) of Regulation Q (12 CFR 217.20(e)(3)) a decision that a regulatory capital element may be included in a company's common equity tier 1 capital, additional tier 1 capital, or tier 2 capital;
To determine under § 217.22(a)(5)(i) of Regulation Q (12 CFR 217.22(a)(5)(i)) whether the deduction of a defined benefit pension fund net asset is not required to the extent that the company has unrestricted and unfettered access to the assets in the fund;
To act on a request from a company under § 217.22(b)(2)(iv) of Regulation Q (12 CFR 217.22(b)(2)(iv)) to change to its AOCI opt-out election following a merger, acquisition, or purchase transaction;
To act on a request from a company under § 217.22(c)(4), (5), or (6) or (d)(2)(i)(C) of Regulation Q (12 CFR 217.22(c)(4), (5), or (6) or (d)(2)(i)(C)) not to deduct investments in the capital of an unconsolidated financial institution either:
(1) To the extent the investment is related to a failed underwriting, or
(2) If the financial institution is in distress and the investment is made for the purpose of providing financial support to the financial institution;
To act on a request from a company under § 217.22(d)(1)(iv) or (d)(2)(iii) of Regulation Q (12 CFR 217.22(d)(1)(iv) or (d)(2)(iii)) to change its election whether to exclude DTAs and DTLs relating to adjustments made to common equity tier 1 capital;
To act on a request from a company under § 217.22(e)(5) of Regulation Q (12 CFR 217.22(e)(5)) to change its preference regarding the manner in which it nets DTLs against specific assets subject to deduction;
To act on a request from a company under § 217.22(h)(2)(iii)(A) of Regulation Q (12 CFR 217.22(h)(2)(iii)(A)) to use a conservative estimate of the amount of its investment in its own capital instruments or the capital of an unconsolidated financial institution held through a position in an index; and
To determine under § 217.22(h)(3)(iii)(C) of Regulation Q (12 CFR 217.22(h)(3)(iii)(C)) whether a company's internal control process is adequate.
To act on a company's request under § 217.20(b)(1)(iii), (c)(1)(vi), or (d)(1)(x) of Regulation Q (12 CFR 217.20(b)(1)(iii), (c)(1)(vi), (d)(1)(x)) to redeem a security; and
To act on a company's request under § 217.20(c)(1)(v)(A) or (d)(1)(v)(A) of Regulation Q (12 CFR 217.20(c)(1)(v)(A), (d)(1)(v)(A)) to exercise a call option.
Delegations regarding the standardized approach in subpart D of Regulation Q— (12 CFR part 217, subpart D). (i) After consultation with the General Counsel, to determine under § 217.35(d)(3)(i)(E) of Regulation Q (12 CFR 217.35(d)(3)(i)(E)) that a risk weight higher than 20 percent for variable RW in formula KCCP is more appropriate based on the specific characteristics of the QCCP and its clearing members.
To determine under § 217.35(d)(1) of Regulation Q (12 CFR 217.35(d)(1)) whether there has been a material change in the financial condition of a CCP;
To act on a request under § 217.35(d)(2) of Regulation Q (12 CFR 217.35(d)(2)) for a company to use a risk-weighted asset amount for default fund contributions to a CCP that is not QCCP other than a 1,250 percent risk weight; and
In the case of a system-wide failure of a settlement or clearing system, or a CCP, to waive under § 217.38(c) of Regulation Q (12 CFR 217.38(c)) risk-based capital requirements for unsettled and failed transactions.
To act on a request from a company under § 217.37(c) of Regulation Q (12 CFR 217.37(c)) to use its own estimates of haircuts, including:
(1) Acting on a request by a company under § 217.37(c)(4)(i)(E) of Regulation Q (12 CFR 217.37(c)(4)(i)(E)) to make changes to the company's policies and procedures; and
(2) Requiring a company under § 217.37(c)(4)(i)(F) of Regulation Q (12 CFR 217.37(c)(4)(i)(F)) to use a different period of significant financial stress in the calculation of own estimates of haircuts; and
To determine under § 217.41(c) of Regulation Q (12 CFR 217.41(c)) whether or not a company has demonstrated a comprehensive understanding of the features of a securitization exposure.
Delegations regarding the advanced approaches risk-based capital rules in subpart E of Regulation Q— (12 CFR part 217, subpart E). (i) With the concurrence of the Chair of the Committee on Supervision and Regulation, and after consultation with the General Counsel, to act on a request by a company under § 217.121(c) and (d) of Regulation Q (12 CFR 217.121(c) and (d)) to use the advanced approaches to calculate its risk-based capital requirements and notify the company of the date that it must begin to do so if the action would not raise significant policy issues.
After consultation with the General Counsel—
To require a company (that no longer meets the qualification requirements in subpart E of Regulation Q (12 CFR part 217, subpart E)) under § 217.123(b)(3) of Regulation Q (12 CFR 217.123(b)(3)) to calculate its advanced approaches total risk-weighted assets with modifications determined by the Director if the Director determines that the advanced approaches total risk-weighted assets are not commensurate with the company's credit, market, operational, or other risk; and
To determine under § 217.133(d)(3)(i) of Regulation Q (12 CFR 217.133(d)(3)(i)) that a risk weight higher than 20 percent for variable RW in formula Kccp is more appropriate based on the specific characteristics of the QCCP and its clearing members.
To determine under § 217.100(c)(1) of Regulation Q (12 CFR 217.100(c)(1)) that not applying a provision of Regulation Q would, in all circumstances, unambiguously generate a risk-based capital requirement for each such exposure greater than that which would otherwise be required;
To determine that a non-U.S. subsidiary of a U.S. company may use the retail definition of default defined in a non-U.S. jurisdiction under the definition of “default” in § 217.101 of Regulation Q (12 CFR 217.101);
To determine for purposes of the definition of eligible double default guarantor in § 217.101 of Regulation Q (12 CFR 217.101) whether the guarantor is subject to consolidated supervision and regulation comparable to that imposed on U.S. depository institutions or securities broker-dealers;
To extend any of the following periods— (1) A company's parallel run start date under § 217.121 of Regulation Q (12 CFR 217.121);
(2) For up to an additional 12 months, the time in which a company may use subpart D of Regulation Q (12 CFR part 217, subpart D) to determine the risk-weighted asset amounts for a merged or acquired company's exposures under § 217.124(a) of Regulation Q (12 CFR 217.124(a)); and
(3) For up to an additional 12 months, the time in which a company may use an acquired company's advanced systems to determine total risk-weighted assets for the merged or acquired company's exposures under § 217.124(b)(1) of Regulation Q (12 CFR 217.124(b)(1));
To assess compliance with any supervisory guidance on qualification requirements for purposes of § 217.121(b)(1) of Regulation Q (12 CFR 217.121(b)(1));
To waive the requirement under § 217.121(b)(2) of Regulation Q (12 CFR 217.121(b)(2)) that a company submit a parallel run implementation plan to the Board at least 60 days before it proposes to begin its parallel run;
To act on a request by a company under § 217.122(g)(2)(ii)(A)(1) of Regulation Q (12 CFR 217.122(g)(2)(ii)(A)(1)) to use a historical observation period of less than five years for internal operational loss event data to address transitional situations, such as integrating a new business line;
To act on a request by a company under § 217.122(g)(2)(ii)(A)(3) of Regulation Q (12 CFR 217.122(g)(2)(ii)(A)(3)) to refrain from collecting internal operational loss event data for individual operational losses below established dollar threshold amounts;
To act on a request by a company under § 217.122(g)(3)(i)(D) of Regulation Q (12 CFR 217.122(g)(3)(i)(D)) to use internal estimates of dependence among operational losses across and within units of measure;
To act on a request by a State member bank under § 217.122(g)(3)(ii) of Regulation Q (12 CFR 217.122(g)(3)(ii)) to generate an estimate of the company's operational risk exposure using an alternative approach to that specified in § 217.122(g)(3)(i) of Regulation Q (12 CFR 217.122(g)(3)(i));
To determine under § 217.123(b) of Regulation Q (12 CFR 217.123(b)) that a company that has conducted a satisfactory parallel run fails to comply with the qualification requirements in § 217.122 of Regulation Q (12 CFR 217.122) and notify the company in writing of the determination;
To determine under § 217.123(b) of Regulation Q (12 CFR 217.123(b)) whether a company's plan to return to compliance with the qualification requirements in § 217.122 of Regulation Q (12 CFR 217.122) is satisfactory;
To establish requirements under § 217.131(e)(1)(i) of Regulation Q (12 CFR 217.131(e)(1)(i)) for the estimation of a margin loan's probability of default (“PD”) and loss given default (“LGD”);
In the case of a system-wide failure of a settlement or clearing system, or a central counterparty, to waive under § 217.136(c) of Regulation Q (12 CFR 217.136(c)) risk-based capital requirements for unsettled and failed transactions; and
To act on a request by a company under § 217.161(b)(2) of Regulation Q (12 CFR 217.161(b)(2)) to use operational risk mitigants other than insurance.
To act on a request for approval of any model or optional approach available under subpart E of Regulation Q (12 CFR part 217, subpart E), including without limitation:
(1) Any counterparty credit risk model or methodology (own estimates of haircuts, simple VaR methodology, internal models methodology, or advanced credit valuation adjustment (“CVA”) approach) under §§ 217.122(d) and 217.132 of Regulation Q (12 CFR 217.122(d) and 217.132), including:
(i) Acting on a request by a company under § 217.132(b)(2)(iii)(A)(5) of Regulation Q (12 CFR 217.132(b)(2)(iii)(A)(5)) to make changes to the company's policies and procedures;
(ii) Requiring a company under § 217.132(b)(2)(iii)(A)(6) of Regulation Q (12 CFR 217.132(b)(2)(iii)(A)(6)) to use a different period of significant financial stress in the calculation of own internal estimates for haircuts;
(iii) Acting on a request by a company under § 217.132(d)(1) introductory text and (d)(1)(iv) of Regulation Q (12 CFR 217.132(d)(1) introductory text and (d)(1)(iv)) to use the internal models methodology, cease using the internal models methodology for a transaction type, or make a material change to its internal model;
(iv) Acting on a request by a company under § 217.132(d)(2)(iv) and (d)(10) of Regulation Q (12 CFR 217.132(d)(2)(iv) and (d)(10)) to use a more conservative estimate of exposure at default (“EAD”);
(v) Determining that a company must set a higher “alpha” under § 217.132(d)(2)(iv)(C) of Regulation Q (12 CFR 217.132(d)(2)(iv)(C)) based on the company's specific characteristics of and counterparty credit risk or model performance;
(vi) Acting on a request by a company under § 217.132(d)(3) of Regulation Q (12 CFR 217.132(d)(3)) to calculate the distributions of exposures upon which the EAD calculation is based;
(vii) Requiring a company under § 217.132(d)(3)(viii) of Regulation Q (12 CFR 217.132(d)(3)(viii)) to modify its stress calibration to better reflect actual historic losses of the portfolio;
(viii) Acting on a request by a company under § 217.132(d)(5)(i) of Regulation Q (12 CFR 217.132(d)(5)(i)) to include the effect of a collateral agreement within an internal model used to calculate EAD;
(ix) Requiring a company under § 217.132(d)(5)(iii)(C) of Regulation Q (12 CFR 217.132(d)(5)(iii)(C)) to set a longer holding period (for margin period of risk for a netting set that is subject to a collateral agreement) if the Director determines that a longer period is appropriate due to the nature, structure, or characteristics of the transaction or is commensurate with the risks associated with the transaction;
(x) Acting on a request by a company under § 217.132(d)(6) of Regulation Q (12 CFR 217.132(d)(6)) to calculate alpha as the ratio of economic capital from a full simulation of counterparty exposure across counterparties that incorporates a joint simulation of market and credit risk factors (numerator) and economic capital based on expected positive exposure (“EPE”) (denominator), subject to a floor of 1.2;
(xi) Acting on a request by a company under § 217.132(e) of Regulation Q (12 CFR 217.132(e)) to calculate its CVA risk-weighted asset amounts for a class of counterparties using the advanced CVA approach;
(xii) Acting on a request by a company under § 217.132(e)(6)(ii)(D) of Regulation Q (12 CFR 217.132(e)(6)(ii)(D)) to use a conservative estimate when determining LGDMKT; and
(xiii) Requiring a company under § 217.132(e)(6)(v)(B) of Regulation Q (12 CFR 217.132(e)(6)(v)(B)) to use a different period of significant financial stress in the calculation of the CVAStressed measure;
(2) Any model or approach relating to cleared transactions under §§ 217.122(d) and 217.133 of Regulation Q (12 CFR 217.122(d) and 217.133), including:
(i) Requiring under § 217.133(d)(1) of Regulation Q (12 CFR 217.133(d)(1)) a company that is a clearing member to determine the risk-weighted asset amount for a default fund contribution to a CCP more frequently than quarterly if in the opinion of the Director of the Division of Supervision and Regulation, there is a material change in the financial condition of the CCP; and
(ii) Acting on a request under § 217.133(d)(2) of Regulation Q (12 CFR 217.133(d)(2)) for a company to use a risk-weighted asset amount for default fund contributions to a CCP that is not QCCP other than a 1,250 percent risk weight;
(3) Any model or approach relating to the double default treatment under §§ 217.122(e) and 217.135 of Regulation Q (12 CFR 217.122(e) and 217.135), including acting on a request by a company under § 217.135(a)(6) of Regulation Q (12 CFR 217.135(a)(6)) to implement a process to detect excessive correlation between the creditworthiness of the obligor of a hedged exposure and a protection provider;
(4) A company's own internal estimates of market price volatility and foreign exchange volatility under § 217.145(b)(4) of Regulation Q (12 CFR 217.145(b)(4)); and
(5) The internal models approach for equity exposures under §§ 217.122(f) and 217.153(b) of Regulation Q (12 CFR 217.122(f) and 217.153(b));
To determine under § 217.131(e)(4) of Regulation Q (12 CFR 217.131(e)(4)) whether a portfolio of exposures is or is not material; and
To assess for purposes of § 217.141(c)(1) of Regulation Q (12 CFR 217.141(c)(1)) whether a company has a comprehensive understanding of the features of a securitization exposure that would materially affect the performance of the exposure.
Delegations regarding the market risk rule in subpart F of Regulation Q— (12 CFR part 217, subpart F). (i) With the concurrence of the Chair of the Committee on Supervision and Regulation, and after consultation with the General Counsel, to act on a request by a company to be excluded from the market risk rule under § 217.201(b)(3) of Regulation Q (12 CFR 217.201(b)(3)) if the action would not raise significant policy issues.
After consultation with the General Counsel, to require a company—
Under § 217.201(c)(1) of Regulation Q (12 CFR 217.201(c)(1)) to hold an amount of capital greater than otherwise required under subpart F of Regulation Q (12 CFR part 217, subpart F) upon a determination that the company's capital requirement for market risk as calculated under Regulation Q is not commensurate with the market risk of the company's covered positions;
Under § 217.201(c)(2) of Regulation Q (12 CFR 217.201(c)(2)) to assign a different risk-based capital requirement to one or more covered positions or portfolios that more accurately reflects the risk of the positions or portfolios; and
Under § 217.201(c)(3) of Regulation Q (12 CFR 217.201(c)(3)) to calculate risk-based capital requirements for specific positions or portfolios under subpart F of Regulation Q (12 CFR part 217, subpart F), or under subparts D or E of Regulation Q (12 CFR part 217, subparts D or E), as appropriate, to more accurately reflect the risks of the positions.
To act regarding any model approval, disapproval, rescission, or supervision under subpart F of Regulation Q (12 CFR part 217, subpart F), including the authority to:
Exclude from trading assets or liabilities structural foreign currency positions of a company or any hedge of a covered position that is outside the scope of the company's hedging strategy under § 217.202 of Regulation Q (12 CFR 217.202);
Act on a request from a company under § 217.203(c)(1) of Regulation Q (12 CFR 217.203(c)(1)) to approve its internal model(s) to calculate its risk-based capital requirement;
Rescind approval under § 217.203(c)(3) of Regulation Q (12 CFR 217.203(c)(3)) of a company's internal model(s) to calculate its risk-based capital requirement;
Act on a request from a company under § 217.204(a)(2)(vi)(B) of Regulation Q (12 CFR 217.204(a)(2)(vi)(B)) to use alternative techniques to measure the risk of de minimis exposures;
Act on a request from a company under § 217.204(b)(2) of Regulation Q (12 CFR 217.204(b)(2)) to use a different adjustment of its VaR-based measure;
Review and determine the appropriateness of a company's omission of risk factors under § 217.205(a)(4) of Regulation Q (12 CFR 217.205(a)(4)) and the use of proxies under § 217.205(a)(5) of Regulation Q (12 CFR 217.205(a)(5));
Review and determine under § 217.205(b)(1) of Regulation Q (12 CFR 217.205(b)(1)) the appropriateness of any conversions of VaR to other holding periods by a company;
Review and determine under § 217.205(b)(2)(ii) of Regulation Q (12 CFR 217.205(b)(2)(ii)) the appropriateness of a company's alternative weighting schemes;
Approve or disapprove under § 217.205(c) of Regulation Q (12 CFR 217.205(c)) any requirements relating to a company's division of subportfolios;
Approve or disapprove under § 217.206(b)(3) of Regulation Q (12 CFR 217.206(b)(3)) any changes to a company's policies and procedures that describe how the company determines the period of significant financial stress used to calculate its stressed VaR-based measure;
Require a company under § 217.206(b)(4) of Regulation Q (12 CFR 217.206(b)(4)) to use a different period of significant financial stress in the calculation of the stressed VaR-based measure;
Act on a request by a company under § 217.208(a) of Regulation Q (12 CFR 217.208(a)) to include certain portfolios of equity positions in its incremental risk model;
Act on a request by a company under § 217.209(a)(1) of Regulation Q (12 CFR 217.209(a)(1)) to use the comprehensive risk approach for one or more portfolios of correlation trading positions and the related approval under § 217.209(a)(2)(ii) of Regulation Q (12 CFR 217.209(a)(2)(ii)) regarding a company's comprehensive risk capital requirement;
Determine under § 217.210(e)(3) of Regulation Q (12 CFR 217.210(e)(3)) whether an index is a main index because the equities represented by the index have comparable liquidity, depth of market, and size of bid-ask spreads as equities in the Standard & Poor's 500 Index and FTSE All-World Index; and
Determine under § 217.210(f)(1) of Regulation Q (12 CFR 217.210(f)(1)) whether or not a company has demonstrated a comprehensive understanding of the features of a securitization exposure.
Delegations of Authority under Basel I-based Capital Guidelines— (Appendix A to Regulation Y, 12 CFR part 225). (i) To approve under section II.A.1.c.ii.(2) of appendix A to Regulation Y, 12 CFR part 225, a bank or bank holding company's redemption of perpetual preferred stock; and
To approve under section II.A.2. of appendix A to Regulation Y, 12 CFR part 225, a bank or bank holding company's redemption of subordinated debt or mandatorily convertible securities prior to the stated maturity.
Delegations regarding the Building Block Approach in subpart J of Regulation Q (12 CFR part 217, subpart J).
[Reserved]
After consultation with the General Counsel—
To require a supervised insurance organization to exclude all or a portion of a particular company capital element from building block available capital, to approve the inclusion on a permanent or temporary basis of a capital resource in building block available capital, to adjust the building block capital requirement and building block available capital of a supervised insurance organization, or to require a supervised insurance organization to take certain actions to better reflect the risk profile of an inventory company or the supervised insurance organization, under § 217.601(d) of Regulation Q (12 CFR 217.601(d));
To require a supervised insurance organization to apply an alternative treatment to a treatment otherwise required by subpart J of Regulation Q (12 CFR part 217 subpart J) under § 217.601(d)(4) of Regulation Q (12 CFR 217.601(d)(4));
To approve a request to exercise a call option on an instrument under § 217.608(a)(1)(v)(A) or § 217.608(a)(2)(iv)(A) of Regulation Q (12 CFR 217.608(a)(1)(v)(A) or 217.608(a)(2)(iv)(A));
To approve a request to redeem or repurchase an instrument under 217.608 (a)(1)(vi) or § 217.608(a)(2)(v) of Regulation Q (12 CFR 217.608(a)(1)(vi) or 217.608(a)(2)(v)); and
To approve a request to include in building block available capital an instrument issued by a company in a supervised insurance organization under § 217.608(g) of Regulation Q (12 CFR 217.608(g)).
Concentration Limit Actions— (Regulation XX (12 CFR part 251)). (1) To approve requests from financial companies seeking to use an accounting standard or method of estimation other than GAAP to calculate and report liabilities pursuant to section 14 of the Bank Holding Company Act (12 U.S.C. 1852) and Regulation XX (12 CFR part 251);
To calculate and publish total financial sector liabilities for the preceding calendar year and the average of financial sector liabilities for the preceding two calendar years, for use in calculating whether a firm exceeds 10 percent of the liabilities of all financial firms in the United States pursuant to section 14 of the Bank Holding Company Act (12 U.S.C. 1852); and
To provide prior written consent for purposes of section 14 of the Bank Holding Company Act (12 U.S.C. 1852) to a financial company to consummate an acquisition of a de minimis transaction, to the extent that the transaction otherwise meets all other criteria for delegated action related to financial, managerial, convenience and needs, and other review factors.
Savings and loan holding companies.
With concurrence of the General Counsel—
To extend the time limits in, or otherwise modify, an agreement entered into by a savings and loan holding company pursuant to § 238.66 of Regulation LL (12 CFR 238.66).
To determine that publication of an agreement entered into by a savings and loan holding company pursuant to § 238.66 of Regulation LL (12 CFR 238.66) would be contrary to the public interest under the publication requirements of the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.).
To act on requests for exemptions or otherwise make determinations under section 11 of the Home Owners' Loan Act (12 U.S.C. 1468), as implemented in Regulation W (12 CFR part 223), to the same extent authorized with respect to insured depository institutions and their affiliates and bank holding companies.
With the Director of the Division of Consumer and Community Affairs, to designate the responsible Reserve Bank of a savings and loan holding company when the standard delegation would not result in an efficient allocation of supervisory resources or would not otherwise be appropriate.
Swaps margin and swaps push-out. To approve internal margin models for entities for which the Board is the prudential regulator, in accordance with § 237.8 of Regulation KK (12 CFR 237.8).
Certain determinations under Regulations LL, YY, and QQ. In consultation with the General Counsel, to:
Determine that an asset meets the criteria to be a highly liquid asset under the Board's prudential standards in Regulation LL (12 CFR 238.124(b)(3)(i)) and Regulation YY (12 CFR 252.35(b)) to the extent that such determination is consistent with the criteria specified in such regulations and does not raise any significant legal, policy, or supervisory concerns;
Determine that a foreign banking organization may comply with the requirements in Regulation YY (12 CFR 252.3(c)) through a subsidiary to the extent that such determination is consistent with the criteria specified in Regulation YY and does not raise any significant legal, policy or supervisory concerns; and
Identify which holding company in a multi-tiered holding company will be a covered company under Regulation QQ (12 CFR part 243) to the extent such identification is consistent with the criteria specified in Regulation QQ (12 CFR 243.2) and does not raise any significant legal, policy, or supervisory concerns.
Approving certain requests under the Capital Rule (Regulation Q, 12 CFR part 217) related to the exposure amount of derivative contracts. To the extent that the determination or request does not raise any significant legal, policy, or supervisory issue:
To act on a request under § 217.34(f) of Regulation Q (12 CFR 217.34(f)) as to whether a holding period greater than 5 days is appropriate for variable H due to the nature, structure, or characteristics of the transaction or that is commensurate with the risks associated with the transaction;
To act on a request under § 217.132(c)(1) of Regulation Q (12 CFR 217.132(c)(1)) from a banking organization to change its election between the use of the standardized approach to counterparty credit risk under § 217.132(c)(5) of Regulation Q (12 CFR 217.132(c)(5)) and the internal models methodology under § 217.132(d) of Regulation Q (12 CFR 217.132(d)) for its derivative transactions;
To require under § 217.132(c)(2)(iii)(H) of Regulation Q (12 CFR 217.132(c)(2)(iii)(H)) that a banking organization include a derivative contract in multiple hedging sets if the risk of the derivative contract materially depends on more than one of interest rate, exchange rate, credit, equity, or commodity risk factors;
To act on a request under § 217.132(d)(10) of Regulation Q (12 CFR 217.132(d)(10)) from a banking organization to use a more conservative estimate of EAD for purposes of the internal models methodology;
To require under § 217.133(d)(1) of Regulation Q (12 CFR 217.133(d)(1)) that a banking organization determine the risk-weighted asset amount for its default fund contribution to a central counterparty (CCP) on the basis that there has been a material change in the financial condition of the CCP;
To act on a request under § 217.133(d)(2) of Regulation Q (12 CFR 217.133(d)(2)) from a banking organization to use a risk-weighted asset amount for a default fund contribution to a CCP that is not a qualifying central counterparty (QCCP) other than 1,250 percent risk weight; and
To act on a request under § 217.133(d)(6)(vi) of Regulation Q (12 CFR 217.133(d)(6)(vi)) from a banking organization to determine the risk-weighted asset amount for a default fund contribution to a QCCP according to § 217.35(d)(3)(ii) (12 CFR 217.35(d)(3)(ii)) rather than § 217.133(d) (12 CFR 217.133(d)).
Insurance Policy Advisory Committee. To organize and administer the Insurance Policy Advisory Committee (“IPAC”), including by publishing future requests for IPAC applications in the Federal Register.
Submission of reports.
With the concurrence of the General Counsel, to prepare and submit to Congress reports under section 165(b)(5) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5365(b)(5)).
With the concurrence of the General Counsel, to prepare and submit to Congress reports under section 37(c) of the Federal Deposit Insurance Act (12 U.S.C. 1831n(c)), and to submit such reports to the Federal Register for publication.
Notes, amendments, and revision history
Amendments
[87 FR 54003, Sept. 1, 2022, as amended at 88 FR 32622, May 22, 2023; 88 FR 80109, Nov. 17, 2023; 91 FR 10745, Mar. 5, 2026]
Authority
Authority: 12 U.S.C. 248(i) and (k).
Source
Source: 87 FR 54003, Sept. 1, 2022, unless otherwise noted.
Amendments
[87 FR 54003, Sept. 1, 2022, as amended at 88 FR 32622, May 22, 2023; 88 FR 80109, Nov. 17, 2023; 91 FR 10745, Mar. 5, 2026]