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REGULATORS OFFER CECL WEBINAR

FDIC FIL-17-2019 announced the federal financial institution regulatory agencies will host an interagency webinar focusing on the application of the Weighted-Average Remaining Maturity (WARM) method for estimating allowances for current expected credit losses (CECL). The event will be held in conjunction with the Financial Accounting Standards Board, the U.S. Securities and Exchange Commission, and the Conference of State Bank Supervisors. The webinar is scheduled for April 11, 2019, at 2:00 p.m. ET. A copy of FIL-17-2019 is […]

FDIC TECH SERVICE PROVIDER CONTRACT CONCERN

On April 2, 12019 the FDIC published FIL-19-2019, which shares observations about gaps in financial institutions’ contracts with technology service providers that may require financial institutions to take additional steps to manage their own business continuity and incident response. The FIL reminded agency-supervised financial institutions that: Their boards of directors and senior management are responsible for managing risks related to relationships with technology service providers. Effective contracts are an important risk management tool for overseeing technology […]

AGENCIES DELAY CECL EFFECTIVE DATE

The OCC, Federal Reserve and FDIC have published a final rule delaying the effective date of their rule to address changes in credit loss accounting under U.S. generally accepted accounting principles, including banking organizations’ implementation of the current expected credit losses methodology (CECL). The final rule had an effective date of April 1, 2019, and provides that banking organizations may early adopt the final rule prior to that date. The agencies have determined that a delay […]

FDIC ELIMINATES ANNUAL DISCLOSURE STATEMENT REQUIREMENT

On March 18, 2019 the Federal Deposit Insurance Corporation (FDIC) issued a final rule rescinding its regulations at 12 CFR 350, entitled Disclosure of Financial and Other Information By FDIC-Insured State Nonmember Banks. Upon the effective date, all insured state nonmember banks and insured state licensed branches of foreign banks will no longer be subject to the annual disclosure statement requirements set out in the existing regulations at 12 CFR 350. The annual disclosure under […]

PREPAID ACCOUNTS – EXAMINATION PROCEDURES

The Federal Deposit Insurance Corporation has released examination procedures for Prepaid Accounts to incorporate the Consumer Financial Protection Bureau’s (CFPB) amendments to Regulation E and Regulation Z. The examination procedures may be helpful to financial institutions seeking to better understand how examiners will evaluate an institution’s compliance with the prepaid account rule.. On October 3, 2016, the CFPB published its Final Rule for Prepaid Accounts to create comprehensive consumer protections for prepaid accounts. Specifically, the […]