Banking Agencies Propose Technical Corrections and Clarifications to Capital Rules

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (collectively, the "Agencies") proposed clarifications to the Agencies' regulatory capital rules that apply to banking organizations that are subject to the advanced approaches risk-based capital rule.

The proposed changes would include qualification criteria and calculation requirements for risk-weighted assets.

The proposal applies only to large internationally active banking organizations that currently determine their regulatory capital ratios under the advanced approaches rule – or that may use the advanced approaches rule in the future – and generally to those with at least $250 billion in total consolidated assets or at least $10 billion in total on-balance sheet foreign exposures.

Comments on the proposed changes will be due 60 days after the publication, which is expected shortly, of the rule in the Federal Register.

See: 79 FR 75455; FRB Press Release; FDIC Press Release; OCC Press Release.Related news: OCC and FRB Publish Final Rules Regarding Regulatory Capital Rules (Fed. Reg.)(October 14, 2013); FDIC Publishes Basel III and Capital Requirement Rules (Fed. Reg.) (September 11, 2013).