Banking Agencies Adopt Revisions to Regulatory Capital Rule and Liquidity Coverage Ratio Rule
The OCC, the Federal Reserve Board and the FDIC finalized three interim rules (see previous coverage here, here and here) that revise the regulatory capital rule and the liquidity coverage ratio rule.
The joint final rules eliminate the regulatory capital effects of participating in the Money Market Mutual Fund Liquidity Facility ("MMLF") and the Paycheck Protection Program ("PPP") Lending Facility for banking organizations. The final rules also provide relief as to the community bank leverage ratio by continuing to allow banking organizations to exclude assets acquired as part of the MMLF and PPP covered loans pledged under the PPP Lending Facility.
The final rules will go into effect on December 28, 2020.
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A final rule to modify the community bank leverage ratio to provide relief to community banks, was published in the Federal Register.
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The Fed, the FDIC and the OCC modified the liquidity coverage ratio rule to eliminate the effects on banking organizations for participating in the Money Market Mutual Fund Liquidity Facility and the Paycheck Protection Program Liquidity Facility.
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The OCC, Federal Reserve Board and FDIC joint interim final rule intended too neutralize the regulatory capital effects of participating in the Paycheck Protection Program Lending Facility for financial institutions was published in the Federal Register.
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- OCC Rules--Part 3: Capital Adequacy Standards (3.1-701)
- OCC Rule 3.131: Mechanics for calculating total wholesale and retail risk-weighted assets.
- OCC Rule 3.2: Definitions.
- OCC Rule 3.305: Exposures related to the Paycheck Protection Program Lending Facility.
- OCC Rule 3.32: General risk weights.
- OCC Rule 50.3: Definitions.
- OCC Rule 50.34: Cash flows related to Covered Federal Reserve Facility Funding.
- FRS Rules--Part 217 - CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS AND LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS (REGULATION Q) (217.1-502)
- FRS Rule 217.131: Mechanics for calculating total wholesale and retail risk-weighted assets.
- FRS Rule 217.3: Operational requirements for counterparty credit risk.
- FRS Rule 217.303: Temporary exclusions from total leverage exposure.
- FRS Rule 217.304: Temporary changes to the community bank leverage ratio framework.
- FRS Rule 217.305: Exposures related to the Paycheck Protection Program Lending Facility.
- FRS Rule 217.32: General risk weights.
- FRS Rule 249.3: Definitions.
- FRS Rule 249.34: Cash flows related to Covered Federal Reserve Facility Funding.
- FDIC Rules--Part 324: Capital Adequacy of FDIC-Supervised Institutions (324.1-405)
- FDIC Rule 324.131: Mechanics for calculating total wholesale and retail risk-weighted assets.
- FDIC Rule 324.2: Definitions.
- FDIC Rule 324.302: Exposures Related the Money Market Mutual Fund Liquidity Facility.
- FDIC Rule 324.303: Temporary changes to the community bank leverage ratio framework.
- FDIC Rule 324.304: Temporary exclusions from total leverage exposure.
- FDIC Rule 324.32: General risk weights.
- FDIC Rule 329.3: Definitions.
- FDIC Rule 329.34: Cash flows related to Covered Federal Reserve Facility Funding.
- 85 FR 26835 - Liquidity Coverage Ratio Rule: Treatment of Certain Emergency Facilities
- 85 FR 20387 - Regulatory Capital Rule: Paycheck Protection Program Lending Facility and Paycheck Protection Program Loans
- 85 FR 22924 - Regulatory Capital Rule: Temporary Changes to the Community Bank Leverage Ratio Framework
- 85 FR 22930 - Regulatory Capital Rule: Transition for the Community Bank Leverage Ratio Framework
- Federal Register: Banking Regulators Reduce Capital Charges for PPP Loans
- OCC, FRB and FDIC Effective Date: Liquidity Coverage Ratio Rule: Treatment of Certain Emergency Facilities
- OCC, FRB and FDIC Comment Deadline: Liquidity Coverage Ratio Rule: Treatment of Certain Emergency Facilities
- OCC, FRB and FDIC Effective Date: Regulatory Capital Rule: Paycheck Protection Program Lending Facility and Paycheck Protection Program Loans
- OCC, FRB and FDIC Comment Deadline: Regulatory Capital Rule: Paycheck Protection Program Lending Facility and Paycheck Protection Program Loans
- OCC, FRB & FDIC Effective Date: Regulatory Capital Rule: Temporary Changes to the Community Bank Leverage Ratio Framework
- OCC, FRB & FDIC Comment Deadline: Regulatory Capital Rule: Temporary Changes to the Community Bank Leverage Ratio Framework
- OCC Rule 3.303: Temporary changes to the community bank leverage ratio framework.
- Comptroller, FDIC, Fed. Res. Board / Banks Effective Date: Treatment of Certain Emergency Facilities in the Regulatory Capital Rule and the Liquidity Coverage Ratio Rule (2020-12-28)
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