In the waning weeks of the year, federal agencies are working to finalize budgetary reports and publish assessments regarding key metrics that will inform their strategic moves in the year ahead. Learn about some of the latest developments on these matters in this roundup:
FDIC extends comment period for custodial recordkeeping proposal
The Federal Deposit Insurance Corp. (FDIC) extended the comment period for its proposed rule on custodial account recordkeeping by 45 days, now closing on Jan. 16, 2025. The proposed rule was designed to target risks from third-party deposit arrangements, aiming to protect depositors and reinforce confidence in insured deposits. Initially offering 60 days for feedback, the rule would require FDIC-insured banks to maintain accurate daily records of custodial accounts, ensuring the identification of individual fund owners. Banks would have to reconcile accounts daily and comply with oversight by federal supervisors. Noncompliance could result in an enforcement action. The proposal also attempts to provide a comprehensive overview of third-party recordkeeping responsibilities. Read more about the proposal here.
Federal Reserve offers update on policy framework review
The Federal Reserve offered additional information about the agency’s periodic review of the framework it uses in its effort to meet certain goals assigned by Congress for positioning the country to reach maximum employment and price stability. This framework consists of monetary policy strategy, specific tools, and communications. The review is focused on two specific areas: the Federal Open Market Committee’s (FOMC) Statement on Longer-Run Goals and Monetary Policy Strategy, which articulates the committee’s approach to monetary policy; and the FOMC’s policy communications tools. The Fed noted the committee’s 2 percent longer-run inflation goal will not be a focus of the review. Learn more about the review here.
NCUA approves CLF budgets, offers Share Insurance Fund update
The National Credit Union Administration Board unanimously approved its 2025-2026 Central Liquidity Facility (CLF) budgets and heard a briefing on the performance of the Share Insurance Fund for the third quarter during its eighth open meeting of the year. The 2025 CLF budget will be $2,307,863 while the 2026 CLF budget will be $2,448,263, the board determined. The CLF consists of 431 regular members and 11 corporate credit union correspondents. It has a current capacity of $21.7 billion compared to $20.1 billion approximately one year prior. As of Sept. 30, the Share Insurance Fund held $22.6 billion in assets and had recorded a net income of $72.2 million and $145.8 million in total income for the third quarter, per the briefing provided to the board. Find more details here.
OCC details enforcement taken in November
The Office of the Comptroller of the Currency (OCC) released a list of enforcement actions the agency issued in November against national banks and federal savings associations, and individuals currently and formerly affiliated with banks the OCC supervises. The list included four actions related to “unsafe and unsound” banking practices among various financial institutions and two actions against individual bank executives related to the falsification of collateral information and the misappropriation of funds. Read more about these matters here.