The Federal Deposit Insurance Corp. (FDIC) is expected Tuesday to propose new capital requirements for certain swap participants, as well as guidelines for adjusting the premiums of large banks.
Under the Dodd-Frank Act, derivatives reform is largely left to the Commodity Futures Trading Commission and Securities and Exchange Commission to implement. But the law also gave the prudential bank regulators the task of imposing capital and margin requirements on swap participants that are depository institutions. The FDIC is drafting the proposal with the Federal Reserve Board and the Office of the Comptroller of the Currency.
Meanwhile, the agency plans to seek comment on updated guidelines for adjusting the premiums of large banks. The new guidelines follow the agency's broad overhaul in February of its risk-based pricing formula for banks with more than $10 billion assets. The agency maintains the discretion to consider idiosyncratic factors about a large institution to adjust its price up or down after its initial premium has been calculated.
The FDIC board is also expected to get a staff update on income projections for the Deposit Insurance Fund.