Ginnie Gives Ground on Controversial RBC Requirements
Following its long-delayed release of eligible seller-servicers standards with FHFA, Ginnie Mae announced today that it is extending by one year its mandatory compliance date for the new risk-based capital standards. The announcement cites stakeholder feedback and evolving market dynamics –doubtless the economic downturn and concerns about procyclicality – in the agency’s decision for this extension, which sets a new RBC implementation date of December 31, 2024.
BIS Unveils Two-Tier CBDC Prototype
Reflecting the BIS’ preferred two-tier CBDC structure (see Client Report CBDC6), the BIS today announced the launch of a prototype two-tier retail CBDC called Aurum comprised of a wholesale interbank system and a retail e-wallet. The wholesale interbank system is designed to ensure that banks do not issue more retail CBDCs than the wholesale CBDCs that the bank owns or double issue the same wholesale CBDC asset as a retail CBDC asset. This system also tracks unspent transaction output, allowing users to prove ownership even if an issuing bank has ceased operations.