ABA Seeks Clarity on Effective Date for Tailoring Final Rules

ABA today wrote to the heads of the Federal Reserve, FDIC and OCC requesting clarity on the effective date of recently finalized final rules on the tailoring of capital and liquidity standards. While the preamble of the final rules communicates the agencies’ intent that they be effective Jan. 1, 2020, the stated effective date is 60 days after publication in the Federal Register, ABA noted.

“A post-Jan. 1, 2020, effective date would likely be confusing for investors and other market participants as well as for banks supervision,” ABA wrote. “We request that the agencies take appropriate action to clarify the ability of affected firms to adopt relevant provisions of the tailoring rules as of Jan.1, 2020.”

ABA also urged the Federal Reserve to amend reporting for FR Y-15 so that it aligns with the definitions under the tailoring rule.