OCC Issues Interim Final Rule Making Basel III Technical and Conforming Amendments to Capital Requirements

The Office of the Comptroller of the Currency ("OCC") issued an interim final rule that makes technical and conforming amendments to its capital regulations.

The interim final rule, which is effective March 31, 2014, makes various amendments so that the OCC's rules are consistent with the recently adopted Basel III Capital Framework by providing cross-references to new capital rules and, where necessary, deleting obsolete rules. The interim final rule also makes changes to subordinated debt rules to clarify the requirements subordinated debt must meet and the procedures required to issue and redeem subordinated debt.

The amendments apply to all banks, including national banks, federal savings association and community banks. Community banks must comply with the Basel III Capital Framework (and statutory limitations that cross-reference the regulatory capital rules) beginning January 1, 2015, while advanced approaches national banks and federal savings associations must comply with the Basel III Capital Framework beginning January 1, 2014.

Related news: FRB Issues Final Rule Changes in Order to Align with the Basel III Capital Framework (December 6, 2013); FDIC Publishes Basel III and Capital Requirement Rules (Fed. Reg.) (September 11, 2013); FDIC and OCC Adopt Rules Regarding the Implementation of Basel III Capital Requirements (July 9, 2013) Delta Strategy Group: Summary of New Basel Capital Proposals (July 3, 2013).