In an effort to eliminate any chance for confusion, the federal deposit insurance agency is proposing to wipe clean from the books superseded capital rules that went out of effect more than three years ago.
The Federal Deposit Insurance Corp. (FDIC) will publish in a Federal Register notice that it is rescinding capital rules – still in its code of regulations – that became obsolete once new rules became effective for all insured institutions on Jan. 1, 2015. “Before the effective dates of the revised capital rule, FDIC-supervised institutions were subject to the superseded capital rules in part 325 and subparts Y and Z of part 390 of the FDIC’s codified rules,” the FDIC said in its filing with the Register. “The superseded capital rules remain in the Code of Federal Regulations (CFR), even though they were no longer effective for any FDIC-supervised institution since January 1, 2015.”
The agency said maintaining the superseded capital rules in the FDIC’s codified rules could “result in confusion and therefore this final rule removes the superseded capital rules.”
FDIC said the final rule (to be published as soon as Tuesday, and effective upon publication) rescinds part 325, subpart A – Minimum Capital Requirements, subpart B – Prompt Corrective Action and appendices A through D of the agency’s rules, “as the rules contained therein have been superseded by part 324.”
Under the final rule, FDIC said, the annual stress testing rule will remain in part 325. Part 325 will be retitled Annual Stress Test and the stress testing rule will be renumbered to reflect the removed capital rules. “Similarly, the final rule removes the superseded capital rules contained in part 390 subpart Y – Prompt Corrective Action and part 390, subpart Z – Capital and related appendices. Under the final rule, sections in part 390 that are not removed will remain codified in part 390, including certain enforcement authorities related to savings associations’ capital requirements,” FDIC said.