Federal Register: Banking Regulators Reduce Capital Charges for PPP Loans
The OCC, Federal Reserve Board and FDIC joint interim final rule intended to neutralize the regulatory capital effects of participating in the Paycheck Protection Program ("PPP") Lending Facility (or the "PPPL Facility") for financial institutions was published in the Federal Register. The interim final rule went into effect upon publication in the Federal Register (April 13, 2020). Comments must be submitted by May 13, 2020.
The PPPL Facility was implemented by the Small Business Administration ("SBA") following the adoption of the Coronavirus, Aid, Relief and Economic Security Act (the "CARES Act"). As previously covered, under the interim final rule a financial institution will be allowed to exclude PPPL Facility-related exposure from its (i) total leverage exposure, (ii) average total consolidated assets, (iii) advanced approaches total risk-weighted assets and (iv) standardized total risk-weighted assets.
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The OCC, Federal Reserve Board and FDIC adopted an interim final rule that will neutralize the regulatory capital effects of participating in the Paycheck Protection Program Lending Facility for financial institutions.
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