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. Expected to be published shortly. Effective Oct. 1, 1997.

HOME LOAN BANK DIRECTORS: The Federal Housing Finance Board authorized the 12 Home Loan banks to set the pay of their directors. Published Aug. 21; effective Jan. 1.

CREDIT LIFE: The OCC adopted a rule requiring national banks to limit bonuses for credit life insurance to 5% of an employee's pay or 5% of the average salary of those who sell it, whichever is higher. Published Oct. 4. Effective Dec. 31.

AUDIT CONTRACTS: The National Credit Union Administration approved a rule requiring all credit unions to obtain the signatures of outside auditors on contracts specifying what services the auditors provide to the institution. Published Aug. 8; effective Dec. 31.

SECURITIES UNDERWRITING: The Fed completed a rule allowing securities affiliates to exclude interest on most corporate bonds from the cap on underwriting revenues. Published Sept. 17. Effective Nov. 12.

EQUAL CREDIT: The Fed issued a staff commentary requiring lenders to review their credit scoring models periodically to ensure they don't discriminate against minorities and the elderly. Expected to be published shortly. Effective Oct. 31.

LENDING and INVESTMENT: The Office of Thrift Supervision eliminated about half of its lending regulations and made them more consistent with lending restrictions that apply to banks. Published Sept. 30. Effective Oct. 30.

COMMUNITY DEVELOPMENT: The OCC loosened the criteria national banks must meet in order to invest in community development projects. Published Sept. 24; effective Oct. 24.

TRUTH-IN-LENDING: The Fed revised its rules to treat debt cancellation agreements as it does any other form of credit insurance. Also, it created a $100 safe harbor for banks that understate the closing costs of a home mortgage. Published Sept. 19. Effective Oct. 21.

SAFETY and SOUNDNESS: The banking and thrift agencies issued new guidelines on asset quality and earnings. The asset-quality guidance requires institutions to identify problem assets, estimate inherent losses, and establish adequate reserves. The earnings guidance requires institutions to compare revenue trends with various benchmarks. Published Aug. 27; effective Oct. 1.

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