PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Saturday, December 19, 2020
December 19, 2020
FedACTion Task Force
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PH Client Alerts
Click here to read more from our Coronavirus series.
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 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
Federal Reserve Board
Federal Reserve Board Releases Second Round of Bank Stress Test Results
December 18, 2020
The Board of Governors of the Federal Reserve System released a second round of bank stress test results this year, which showed that large banks had strong capital levels under two separate hypothetical recessions.
Federal Reserve Board Votes to Affirm the Countercyclical Capital Buffer (CCyB) at the Current Level of 0 Percent
December 18, 2020
The Federal Reserve Board voted to affirm the Countercyclical Capital Buffer (CCyB) at the current level of 0 percent. In making this determination, the Federal Reserve Board followed the framework detailed in its policy statement for setting the CCyB for private-sector credit exposures located in the United States.
Paper: What Drives U.S. Treasury Re-use?
December 18, 2020
The Divisions of Research & Statistics and Monetary Affairs of the Federal Reserve Board released a paper in its Finance and Economics Discussion Series titled “What Drives U.S. Treasury Re-use?” The authors study what drives the re-use of U.S. Treasury securities in the financial system. They document a sharp drop in U.S. Treasury re-use at the onset of the COVID-19 pandemic, with a subsequent reversal after the Federal Reserve Board’s intervention to support market functioning.
Federal Reserve Bank of New York
New York Fed releases FAQs for the CPFF Cash Investment Management Prequalification Process
December 18, 2020
The Federal Reserve Bank of New York posted a set of FAQs regarding the Cash Investment Management prequalification process for the Commercial Paper Funding Facility.
High Frequency Data and a Weekly Economic Index during the Pandemic
December 18, 2020
The Federal Reserve Bank of New York released a paper which describes a weekly economic index (WEI) developed to track the rapid economic developments associated with the onset of and policy response to COVID-19 in the United States.
U.S. Economy in a Snapshot
December 18, 2020
The Federal Reserve Bank of New York released “U.S. Economy in a Snapshot.” According to the release, consumer spending rose in October 2020 at the slowest pace since April 2020. Overall spending was down 2% over the year, with purchase of goods up 8% and those for services down 6%.
International
European Commission
EU Cohesion Policy: End of Year Wrap-Up of Action Against the Effects of the Coronavirus Pandemic
December 18, 2020
The European Commission (EC) announced the 2020 results of the Coronavirus Response Investment Initiative and the Coronavirus Response Investment Initiative Plus. As a result of such legislative packages launched by the EC to fight the effects of the coronavirus pandemic, the European Union mobilized investments of around €18 billion since the beginning of the crisis to support the health and socio-economic sectors.
Bank of England
The Central Bank Balance Sheet as a Policy Tool: Past, Present and Future
December 18, 2020
The Bank of England released a paper focusing on the emerging lessons from the effects of monetary policy responses to the COVID-19 pandemic.
The Impact of COVID on Machine Learning and Data Science in UK Banking
December 18, 2020
The Bank of England issued a bulletin which reports findings from a survey conducted in August 2020 of UK-based banks about how COVID has affected the adoption and use of machine learning and data science. Half of the banks surveyed reported an increase in the importance of machine learning and data science as a result of the pandemic. None believe that COVID will reduce the importance of machine learning and data science.
UK Financial Conduct Authority
Approved Persons Regime and Coronavirus: FCA’s Expectations - December 2020 Update
December 18, 2020
The Financial Conduct Authority issued an update on its expectations to help firms using Appointed Representative arrangements apply the Approved Persons Regime during COVID-19.
Joint FCA and PRA statement on Senior Managers & Certification Regime and Coronavirus: FCA’s Expectations for Dual-Regulated Firms - December 2020 Update
December 18, 2020
The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) issued a joint update on their expectations to help dual-regulated firms apply the Senior Managers & Certification Regime (SM&CR) following the exceptional circumstances arising from COVID-19.
Senior Managers & Certification Regime and Coronavirus: FCA’s Expectations for Solo-Regulated Firms - December 2020 Update
December 18, 2020
The Financial Conduct Authority issued an update on its expectations to help solo-regulated firms apply the Senior Managers & Certification Regime following the exceptional circumstances arising from COVID-19.