capital rules

Agencies Propose Technical Corrections and Clarifications to the Capital Rules Applicable to Advanced Approaches Banking Organizations

On November 18, the Federal Reserve Board, the FDIC and the OCC proposed clarifications to the revised regulatory capital rules adopted by the agencies in July 2013. The proposal applies to large internationally active banking organizations that currently determine their regulatory capital ratios under the advanced approaches rule.  Release.

Extended Comment Period for Basel III NPRs

On August 8, the Fed, the FDIC, and the OCC extended the comment period for the three notices of proposed rulemaking from June 7 to revise and replace current capital rules.  Comments originally due on September 7 are now due on October 22.  Fed Release. 
Basel III NPR.  Standardized Approach NPR.  Advanced Approaches and Market Risk NPR.

OCC, Fed and FDIC Proposed Capital Rules

On June 12, the OCC, Fed, and FDIC announced that they are seeking comment on three notices of proposed rulemaking (NPRs) that would revise and replace the agencies’ current capital rules. In the first Basel III NPR, the agencies propose to revise their risk-based and leverage capital requirements consistent with agreements reached by the Basel Committee on Banking Supervision. The second Basel III NPR would revise the agencies’ prompt corrective action framework by incorporating the new regulatory capital minimums and updating the definition of tangible common equity. In the third capital NPR, the agencies propose to revise and harmonize rules for calculating risk-weighted assets to enhance risk sensitivity and address weaknesses identified over recent years, including by incorporating aspects of the Basel II standardized framework, and alternatives to credit ratings, consistent with section 939A of the Dodd-Frank Act. Comments on the three NPRs are requested by September 7. The agencies also announced the finalization of the market risk capital rule that was proposed in 2011, which will be effective on January 1, 2013.  Joint Release.