OCC revises supervision booklet on regulatory capital rules

A revised booklet on regulatory capital rules and supervision was issued Monday by the Office of the Comptroller of the Currency (OCC). The booklet, “Capital and Dividends,” is part of the Comptroller’s Handbook and applies to examinations of all OCC-supervised banks.

The booklet presents the regulatory capital framework and discusses the regulatory capital rules that define regulatory capital and establish minimum capital standards. Additionally, it provides guidance to examiners for assessing banks’ capital adequacy and compliance with capital and dividend regulations.

Announced in OCC Bulletin 2018-20, the booklet reflects changes to the regulatory capital rule; reflects the integration of the Office of Thrift Supervision (OTS) into the OCC; includes expanded examination procedures for capital, dividends, and capital adequacy; includes an internal control questionnaire and verification procedures; and incorporates the information in OCC Bulletin 2012-16, “Capital Planning: Guidance for Evaluating Capital Planning and Adequacy” (June 7, 2012), which is rescinded.

The booklet also rescinds and replaces the “Capital Accounts and Dividends” booklet from August 1991 (narrative) and March 1998 (procedures); Examining Bulletin 1992-4, “Risk-Based Capital Guidance” (June 29, 1992); OTS Examination Handbook 110, “Capital Stock and Ownership” (December 2003); and OTS Examination Handbook 120, “Capital Adequacy” (September 2010).

Bulletin 2018-20 also notes that the OCC, Federal Reserve Board and Federal Deposit Insurance Corp. (FDIC) are working jointly to amend their rules to incorporate revisions for the regulatory capital framework under the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), enacted May 24.

Revised Comptroller’s Handbook Booklet and Rescissions (OCC Bulleting 2018-20)