Product Updates for August 2022
The Product Updates for August 2022 from BankPolicies.com feature the following revised policy template products:
The update to these products is in response to the Federal Reserve’s Press Release entitled “Federal Reserve Board Announces the Individual Capital Requirements for All Large Banks, Effective October 1” dated 08/04/22 that are in part determined by the Board’s stress test results, which provide a risk-sensitive and forward-looking assessment of capital needs.
The update to this product is in response to the FDIC’s FIL-35-2022 entitled “Advisory to FDIC-Insured Institutions Regarding Deposit Insurance and Dealings with Crypto Companies” dated 07/29/22 that addresses certain misrepresentations about FDIC deposit insurance by some crypto companies. Additionally, a Fact Sheet on What the Public Needs to Know About FDIC Deposit Insurance and Crypto Companies (Deposit Insurance Fact Sheet) has been posted to FDIC’s website to provide additional information about deposit insurance coverage.
The update to this product is in response to the Federal Reserve’s final rule entitled “Regulation A: Extensions of Credit by Federal Reserve Bank” dated 08/09/22 that announced final amendments to its regulations to reflect the Federal Reserve Board’s approval of an increase in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically increased by formula as a result of the Board’s primary credit rate action.
The amendments to part 201 (Regulation A) are effective August 9, 2022. The rate changes for primary and secondary credit were applicable on July 28, 2022.
The update to this product is in response to the Federal Reserve’s final rule entitled “Regulation D: Reserve Requirements of Financial Institutions” dated 08/09/22 that announced final amendments to its regulations to revise the rate of interest paid on balances (“IORB”) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORB is 2.40 percent, a 0.75 percentage point increase from its prior level. The amendment is intended to enhance the role of IORB in maintaining the federal funds rate in the target range established by the Federal Open Market Committee (“FOMC” or “Committee”).
The amendments to part 204 (Regulation D) are effective August 9, 2022. The IORB rate change was applicable on July 28, 2022.
Keeping You Informed
We provide this Product Update Blog as a courtesy to all clients regarding new and revised products released by BankPolicies.com. We feel that it is important to keep our clients well informed of changes to the financial institution industry, including keeping on top of federal regulatory changes, and industry recommended best practices. In this regard, we encourage you to subscribe to our newsletter in which these types of announcements are made including any special offers that can save you time and money. Just contact us to be added to our distribution list.