Summary
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) are proposing revisions to clarify, correct, and update certain provisions of the revised regulatory capital rule adopted by the agencies in 2013.1 The proposed revisions only apply to banking organizations subject to the agencies’ advanced approaches risk-based capital framework.2 The proposed changes do not affect other banking organizations. The proposed revisions clarify some aspects of the qualification requirements for advanced approaches systems. In addition, the proposed revisions better align the advanced approaches subpart of the revised regulatory capital rule with the Basel framework and thereby enhance consistency with international capital standards.
Note for Community BanksThe proposed revisions do not apply to community banks. |
Highlights
The rulemaking proposes to make the changes noted below.
- Clarify the qualification criteria and calculation requirements for risk-weighted assets in order to assist reviews of advanced approaches banking organizations seeking to exit parallel run.
- Clarify that all advanced approaches banking organizations are subject to the supplementary leverage ratio and the disclosure requirements for that ratio.
- Correct typographical and technical errors in the advanced approaches sections of the revised regulatory capital rule.
1 OCC Bulletin 2013-23, Regulatory Capital Rule: Final Rulemaking, October 11, 2013.
2 Advanced approaches banking organizations generally include those with $250 billion or more in total consolidated assets or $10 billion or more in on-balance-sheet foreign exposure; other banking organizations that opt in to the advanced approaches; and depository institution subsidiaries of banking organizations that trigger one of the aforementioned thresholds.