Agencies provide temporary relief to community banking organizations (2020-11-20)
Summary
A joint press release of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, dated November 20, 2020. It announces an interim final rule that provides temporary relief to community banking organizations that grew in size, in large part from participating in coronavirus response programs such as the Paycheck Protection Program. The rule applies to institutions with less than $10 billion in total assets as of December 31, 2019, and the release states that those that crossed a relevant threshold generally will have until 2022 to reduce their size or prepare for new regulatory and reporting standards. The rule is effective immediately upon publication in the Federal Register, with comments accepted for 60 days after publication.
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Full text
Board of Governors of the Federal Reserve System Joint Press Release November 20, 2020 Agencies provide temporary relief to community banking organizations - Board of Governors of the Federal Reserve System - Federal Deposit Insurance Corporation - Office of the Comptroller of the Currency For release at 4:30 p.m. EST The federal bank regulatory agencies on Friday announced an interim final rule that provides temporary relief for certain community banking organizations related to certain regulations and reporting requirements as a result, in large part, of their growth in size from the coronavirus response. Community banking organizations are subject to different rules and requirements based on their risk profile and asset size. Due to participating in federal coronavirus response programs—such as the Paycheck Protection Program—and other lending that supports the U.S. economy, many community banking organizations have experienced rapid and unexpected increases in their sizes, which are generally expected to be temporary. The temporary increase in size could subject community banking organizations to new regulations or reporting requirements. With regard to the requirements covered by the interim final rule, community banking organizations that have crossed a relevant threshold generally will have until 2022 to either reduce their size, or to prepare for new regulatory and reporting standards. The rule applies to community banking organizations financial institutions with less than $10 billion in total assets as of December 31, 2019. Community banking organizations with under $10 billion in assets may have fewer resources available to prepare and comply with previously unanticipated regulatory requirements, especially during a time of economic disruption. The rule will be effective immediately upon publication in the Federal Register , and comments will be accepted for 60 days after publication in the Federal Register . Media Contacts: Federal Reserve Board Laura Benedict 202-452-2955 FDIC Julianne Fisher Breitbeil 202-898-6895 OCC Bryan Hubbard 202-649-6870 Related Content Last Update: December 02, 2020
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