Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Minimum Regulatory Capital Ratios, Capital Adequacy, and Transition Provisions (FDIC Financial Institution Letter)

The federal bank regulatory agencies (the agencies) have jointly issued the attached Notice of Proposed Rulemaking (proposed rule) that would revise the general risk-based capital rules to incorporate certain revisions by the Basel Committee on Banking Supervision to the Basel capital framework (Basel III). The proposed rule would generally revise the definition of regulatory capital components and related calculations.

Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter (FIL) is applicable to all banks. Attached to this FIL is an addendum that also is included in the proposed rule. The addendum offers a summary of the proposed rule designed to clearly and succinctly describe how it would typically apply to smaller, less complex banking organizations. Additional technical assistance explaining the proposed rule also will be made available.

View letter in full here (links externally to FDIC website).