MARKET RISK: The federal banking agencies approved a rule requiring banks with large securities and foreign exchange portfolios to use an internal model to calculate the amount of capital they must hold against swings in the market. Published Sept. 6. Effective Jan. 1, 1998.
CONSUMER LEASES: The Fed adopted a rule requiring firms to explain how they calculate monthly lease payments. Also, it created several model forms and eased broadcast advertising restrictions. Published Sept. 27. Effective Oct. 1, 1997.
FIREWALLS: The Fed eliminated three firewalls that separate investment and commercial banking. The changes allow a single salesman to make loans and offer underwriting services. Also, employees may work for a bank and an affiliated securities unit, and the two entities may buy most corporate securities from each other. Published Nov. 7. Effective Jan. 7.
DEPOSIT INSURANCE: The FDIC set premium rates for Bank Insurance Fund members for the first half of 1997. More than 90% will pay nothing for coverage, but the rate continues to range to 23 cents per $100 of domestic deposits for risky banks. Published Dec. 6. Effective Jan. 1.
THRIFT BYLAWS: The OTS abolished a number of obsolete chartering, bylaw, and corporate governance rules. Published Dec. 3. Effective Jan. 1.
CONFLICTS OF INTEREST: The OTS added a safe harbor to its corporate opportunity regulation, ruling that an executive may personally pursue a business opportunity that the thrift's board has rejected. Published Nov. 27. Effective Jan. 1.
BANK POWERS: The OCC allowed national banks to apply for permission to engage through operating subsidiaries in activities not permitted for the parent. The rule also expedites OCC decisions on corporate applications filed by highly rated national banks. For these banks, application fees will be cut in half. Published Nov. 27. Effective Dec. 31.
ASSET-BACKED SECURITIES: The OCC boosted to 25% the amount of capital and surplus that national banks may invest in highly rated securities backed by credit card, auto, and other loans. Published Dec. 2. Effective Dec. 31.
MUTUAL FUNDS: Eliminating Reg R, the Fed gave directors and officers of bank holding companies permission to sit on the boards of mutual fund companies. Published Nov. 6. Effective Dec. 6.
LOANS FOR SECURITIES: The Fed issued a legal interpretation declaring that registered broker-dealers are no longer subject to Regulations G, T, and U, which govern margin requirements. Published Nov. 26. Effective Nov. 19.
DAYLIGHT OVERDRAFTS: The Fed adopted a new policy statement explaining how it will charge for daylight overdrafts incurred by corporations that pay their taxes electronically. Published and effective Nov. 18.
CREDIT UNIONS: The National Credit Union Administration allowed occupation-based credit unions to serve an entire profession, rather than just employees at a single company. The rule also allows credit unions to retain members at local companies by converting to community-based institutions. Published Nov. 22. Effective Nov. 14. A federal judge on Dec. 4 voided the rule. NCUA is appealing the case, and has asked that the restrictions be suspended until the Supreme Court decides whether to hear the case.
NEW ACTIVITIES: The Fed eliminated a requirement that "well-capitalized" holding companies seek permission before engaging in many nonbank activities, such as leasing and brokerage services. Published and effective Nov. 1.
FINES: The OTS raised the maximum fine for violations of its rules to $1.1 million. Published and effective Oct. 31.
CREDIT UNIONS: The National Credit Union Administration altered its rules to allow any two members to add items to the three-person board's agenda. Previously only the chairman could add agenda items. Published and effective Oct. 25.
CRA HELP: The Exam Council published answers to frequently asked questions about the revised Community Reinvestment Act rules. Published and effective Oct. 21.
CAPITAL: The Fed gave banks permission to count a new form of preferred stock as Tier 1 capital. Published and effective Oct. 21.
LOAN GUARANTEES: The Fed eliminated rules governing the interest rates and fees that government agencies could charge for guaranteed military procurement loans. Published and effective Oct. 9.
THRIFT FUND PREMIUM: The Federal Deposit Insurance Corp. issued a rule explaining how it will calculate the special assessment to capitalize the Savings Association Insurance Fund. It estimated the premium at 65.7 cents for every $100 of deposits insured by the fund as of March 31, 1995. Published Oct. 16. Effective Oct. 8.
