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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Friday, August 6, 2021

August 06, 2021

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Major Developments

Federal Reserve Board

Federal Reserve Board Announces the Individual Capital Requirements for All Large Banks, Effective October 1, 2021

August 5, 2021

Following its stress tests earlier this year, the Federal Reserve Board announced individual capital requirements for all large banks, effective on October 1. Those capital requirements ensure that the large banks tested will hold roughly $1 trillion in high-quality capital that is expected to be enough to survive a severe recession and still be able to lend to households and businesses.

Speech: Governor Waller on Central Bank Digital Currency

August 5, 2021

Federal Reserve Board Governor Christopher J. Waller gave a speech titled, "Central Bank Digital Currency (CBDC): A Solution in Search of a Problem?," which focused on whether a CBDC would address any major problems affecting the payment system.

Speech

Congress

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), Enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.

Federal Agencies

U.S. Department of the Treasury

Readout: Deputy Secretary of the Treasury Wally Adeyemo's Meeting with the Board of Directors of the National Bankers Association

August 4, 2021

Deputy Secretary of the Treasury Wally Adeyemo met with the board of directors of the National Bankers Association (NBA), an association of 31 people of minority-owned banks working to eliminate the racial wealth gap. Deputy Secretary Adeyemo and NBA board members discussed the need for injecting more capital into underserved communities, empowering minority depository institutions to have a seat at the table, and the need for expanding affordable housing in low-income communities.

Readout

Office of the Comptroller of the Currency

Bulletin: Small Business Administration Lending: Risk Management Principles

August 5, 2021

The Office of the Comptroller of the Currency issued a bulletin titled, "Small Business Administration Lending: Risk Management Principles" to inform banksand examiners about sound risk management principles associated with engaging in U.S. Small Business Administration guaranteed lending programs.

Consumer Financial Protection Bureau

CFPB Issues Interpretive Rule on Juneteenth Holiday Impacts for Certain TRID and Closed-End Rescission Provisions

August 5, 2021

The Consumer Financial Protection Bureau released an interpretive rule to assist the mortgage industry in determining whether to treat June 19, 2021 as a federal holiday or a business day for purposes of compliance with certain time-sensitive borrower protections.

What the New CDC Eviction Moratorium Means for You

August 5, 2021

The Consumer Financial Protection Bureau posted a blog post addressing the Centers for Disease Control's new eviction moratorium that temporarily halts evictions in counties where COVID-19 is spreading rapidly. The blog post advises consumers struggling to pay rent, with the steps that are needed to avail themselves of the moratorium.

Blog Post

U.S. Small Business Administration

Factsheet: Supply Squeeze: Small Business Commodity Challenges

August 5, 2021

According to a Small Business Administration report, as the COVID-19 pandemic evolves, small businesses are struggling to obtain the goods they need to operate, impacting their recovery. Approximately 37% of small businesses reported having domestic supplier delays in the second week of June 2021, and increases in commodity costs are a growing concern.

Factsheet

Department of Labor

Unemployment Insurance Weekly Claims Report Update

August 5, 2021

In the week ending July 31, the advance figure for seasonally adjusted initial claims was 385,000, a decrease of 14,000 from the previous week's revised level. The previous week's level was revised down by 1,000 from 400,000 to 399,000. The 4-week moving average was 394,000, a decrease of 250 from the previous week's revised average. The previous week's average was revised down by 250 from 394,500 to 394,250.

Press Release

International

Bank of England

Report: Monetary Policy Report - August 2021

August 5, 2021

The Bank of England published its quarterly Monetary Policy Report, which sets out the economic analysis and inflation projections that the Monetary Policy Committee uses to make its interest rate decisions.

Asset Purchase Facility: Gilt Purchases - Market Notice August 5, 2021

August 5, 2021

The Monetary Policy Committee (MPC) held a meeting on August 4, 2021, where the MPC voted for the Bank of England to continue with its existing program of UK government bond purchases, financed by the issuance of central bank reserves, maintaining the target for the stock of these purchases at £875 billion.