12 CFR 652.30 - Temporary regulatory waivers or modifications for extraordinary situations.

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There is 1 rule appearing in the Federal Register for 12 CFR 652. View below or at eCFR (GPOAccess)
§ 652.30 Temporary regulatory waivers or modifications for extraordinary situations.
Whenever the FCA determines that an extraordinary situation exists that necessitates a temporary regulatory waiver or modification, the FCA may, in its sole discretion:
(a) Modify or waive the minimum liquidity reserve requirement in § 652.20 of this subpart; and/or
(b) Modify the amount, qualities, and types of eligible investments that you are authorized to hold pursuant to § 652.25 of this subpart.
Effective Date Note:
At 77 FR 66382, Nov. 5, 2012, § 652.30 was revised, effective 30 days after publication in the Federal Register during which either or both Houses of Congress are in session. For the convenience of the user, the revised text is set forth as follows:
§ 652.30 Interest rate risk management.
(a) The board of directors of Farmer Mac must provide effective oversight (direction, controls, and supervision) of interest rate risk management and must be knowledgeable of the nature and level of interest rate risk taken by Farmer Mac.
(b) The board of directors of Farmer Mac must adopt an interest rate risk management policy that establishes appropriate interest rate risk exposure limits based on the Corporation's risk-bearing capacity and reporting requirements in accordance with paragraphs (c) and (d) of this section. At least annually, the board of directors, or a designated committee of the board, must review the policy. Any changes to the policy must be approved by the board of directors. You must report any changes to the policy to the OSMO within 10 business days of adoption.
(c) The interest rate risk management policy must, at a minimum:
(1) Address the purpose and objectives of interest rate risk management;
(2) Identify the causes of interest rate risk and set appropriate quantitative limits consistent with a clearly articulated board risk tolerance;
(3) Require management to establish and implement comprehensive procedures to measure the potential effect of these risks on the Corporation's projected earnings and market values by conducting interest rate stress tests and simulations of multiple economic scenarios at least quarterly. Your stress tests must gauge how interest rate fluctuations affect the Corporation's capital, earnings, and liquidity position. The methodology that you use must be appropriate for the complexity of the structure and cash flows of your on- and off-balance sheet positions, including the nature and purpose of derivative contracts, and establish counterparty risk thresholds and limits for derivatives. It must also ensure an appropriate level of consistency with the stress-test scenarios considered under § 652.10(f)(4). Assumptions applied in stress tests must, to the maximum extent practicable, rely on verifiable information. You must document the basis for all assumptions that you use.
(4) Describe and authorize management to implement actions needed to achieve Farmer Mac's desired risk management objectives;
(5) Ensure procedures are established to evaluate and document, at least quarterly, whether actions taken have actually met the Corporation's desired risk management objectives;
(6) Identify exception parameters and approvals needed for any exceptions to the policy's requirements;
(7) Describe delegations of authority; and,
(8) Describe reporting requirements, including exceptions to policy limits.
(d) At least quarterly, management must report to the Corporation's board of directors, or a designated committee of the board, describing the nature and level of interest rate risk exposure. Any deviations from the board's policy on interest rate risk must be specifically identified in the report and approved by the board, or a designated committee of the board.

Title 12 published on 2014-01-01

The following are only the Rules published in the Federal Register after the published date of Title 12.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-01-17; vol. 79 # 12 - Friday, January 17, 2014
    1. 79 FR 3071 - Federal Agricultural Mortgage Corporation Funding and Fiscal Affairs; Farmer Mac Capital Planning
      GPO FDSys XML | Text
      FARM CREDIT ADMINISTRATION
      Notice of effective date.
      Under the authority of 12 U.S.C. 2252, the regulation amending 12 CFR part 652 published on October 31, 2013 (78 FR 65145) is effective January 3, 2014.
      12 CFR Part 652

Title 12 published on 2014-01-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR 652 after this date.

  • 2014-01-17; vol. 79 # 12 - Friday, January 17, 2014
    1. 79 FR 3071 - Federal Agricultural Mortgage Corporation Funding and Fiscal Affairs; Farmer Mac Capital Planning
      GPO FDSys XML | Text
      FARM CREDIT ADMINISTRATION
      Notice of effective date.
      Under the authority of 12 U.S.C. 2252, the regulation amending 12 CFR part 652 published on October 31, 2013 (78 FR 65145) is effective January 3, 2014.
      12 CFR Part 652