The federal banking regulators release their Spring 2023 Regulatory Agendas (including the Federal Reserve Board (FRB), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), Consumer Financial Protection Bureau (CFPB), and the Financial Crimes Enforcement Network (FinCEN). Notable planned final and proposed rulemakings, as well as related KPMG Regulatory Alerts, include:
Title | Stage of Rulemaking | Expected Release | Related KPMG Regulatory Alert |
|---|---|---|---|
Interagency (FRB, FDIC, OCC) | |||
Community Reinvestment Act Regulations | Final rule | June 2023 | |
Basel III Revisions: Amendments to the Capital Rule for Large Banking Organizations | Proposed rule | June 2023 | |
Capital Requirements for Market Risk; Fundamental Review of the Trading Book (FRTB) | Proposed rule | June 2023 | |
Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Programs | Proposed rule | December 2023 | |
Resolution-Related Requirements for Large Banking Organizations | Proposed rule | June 2023 | |
FRB | |||
Regulation HH – Financial Market Utilities | Proposed rule | September 2023 | |
Regulatory Capital Requirements for Depository Institution Holding Companies Engaged in Insurance Activities | Proposed rule | June 2023 | |
FDIC | |||
FDIC Official Sign and Advertising Statement Requirements | Final rule | December 2023 | |
Procedures for Monitoring Bank Secrecy Act Compliance | Proposed rule | December 2023 | |
Resolution Plans for IDIs | Proposed rule | June 2023 | |
FinCEN | |||
Beneficial Ownership Information – Access and Safeguards; Use of FinCEN Identifiers | Final rule | September 2023 | |
National Exam and Supervision Priorities | Proposed rule | December 2023 | |
Revisions to Customer Due Diligence Requirements for Financial Institutions (part 3 of 3 BOI rulemakings) | Proposed rule | November 2023 | |
CFPB | |||
Credit Card Penalty Fees | Final rule | October 2023 | |
Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders | Final rule | November 2023 | |
Personal Financial Data Rights (Section 1033 “Open Banking”) | Proposed rule | October 2023 | |
Fees for Insufficient Funds | “Pre-rule” | November 2023 | |
Overdraft Fees | “Pre-rule” | November 2023 | |
OCC Semi-Annual Risk Perspectives Report
In a separate release, the OCC publishes the Spring 2023 edition of itsSemiannual Risk Perspectives Reporthighlighting OCC’s view on key risks and issues facing the federal banking system. The OCC adds (in an accompanyingstatement), that going forward, the agency “expects banks to ‘be on the balls of their feet’ with regards to risk management, just as [their] examiners are.”
Key Risks.The OCC identifies key risk themes in these four areas:
- Liquidity, including access to cost-efficient funding sources, stress testing, interest rate risk modeling, and reference rate transition and LIBOR phase-out.
- Credit risk, including commercial and retail credit.
- Operational risks, including cybersecurity, innovation and adoption of new products and services, and third-party risk management (TPRM).
- Compliance risks, including risks associated with Bank Secrecy Act (BSA) and OFAC compliance, fair lending and consumer compliance, and relationships with third parties, including fintechs.
Key Issues. The OCC highlights additional issues facing the federal banking system, including:
- Climate-related financial risks, including expectations that banks have robust risk management programs in place to identify, measure, monitor, and control climate-related financial risks. The agency’s supervisory efforts are focused on safety, soundness, and fairness across risk management programs, board governance and senior management structure, and climate scenario analysis.
- Investments in technology infrastructure,acknowledging that while many banks continue to invest resources in maintaining and updating existing technology architecture, as well as developing and implementing innovative technologies, the “prolonged use of older or legacy systems could increase the likelihood of operational outages, security vulnerabilities, system maintenance challenges, and other operational resilience concerns.” OCC’s supervision focuses on technology resilience and identified increasing concerns related to end-of-life (EOL) systems, patch management, and system and data architecture.
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See related KPMG Regulatory Insights materials:
- Point of View |Ten Key Regulatory Challenges of 2023: Mid-year Look Forward
- Regulatory Alert |SEC 2023 Regulatory Agenda
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