The largest U.S. banks collectively showed that they can withstand a severe economic downturn and continued to improve their capital positions, according to the results of Dodd-Frank Act-mandated stress tests the Federal Reserve released yesterday. 

As economic conditions continue to improve -- with a robust labor market, inflation moving closer to the 2 percent target and growth exceeding most long-term estimates -- the Federal Reserve expects to continue pursuing its course of gradual increases to the federal funds rate, Chairman Jerome Powell said in a speech today. 

The American Bankers Association and all 52 state bankers associations on Friday wrote to the heads of the financial regulatory agencies urging regulators to finalize immediately the regulatory deduction portion of their recent proposal aimed at simplifying the complex Basel III capital calculations.

The Federal Reserve Board today approved a final rule limiting the amount of credit exposure that the nation’s largest banks can have to each other and to other counterparties.

The OCC is hoping to issue a long-awaited advance notice of proposed rulemaking on the Community Reinvestment Act in the coming weeks, Comptroller of the Currency Joseph Otting said today, and it has been waiting in order to build consensus with other banking agencies.

The Federal Housing Finance Agency today issued a proposed rule that would create a new framework for risk-based capital requirements for Fannie Mae and Freddie Mac to ensure that the GSEs could cover losses and continue operations in the event of stress. 

In a landmark moment for post-crisis banking policy, the House today passed S. 2155, the Senate’s bipartisan regulatory reform bill.

In a memo to House Financial Services committee members today, ABA urged lawmakers to reject a provision of the Foreign Investment Risk Review Modernization Act of 2018 that would delay the effective date of risk-based capital rules for credit unions for two years.

In a comment letter today, ABA expressed support for a proposal by the Federal Reserve and the OCC that would tailor the enhanced supplementary leverage ratio that applies to the eight global systemically important banks.

In remarks at a Harvard Law School event today, Federal Reserve Vice Chairman for Supervision Randal Quarles signaled that the Fed and the FDIC will revisit the capital and liquidity requirements in place for the largest U.S. and foreign firms and will seek public input on current “living will” guidance.