Regulatory Capital Rule: Capital Simplification for Qualifying Community Banking Organizations

Title:

Regulatory Capital Rule: Capital Simplification for Qualifying Community Banking Organizations

Subject: CBLR
Agency: FDIC, Federal Reserve, OCC
Status: Proposed rule
Summary:

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) are inviting public comment on a notice of proposed rulemaking (proposal) that would provide for a simple measure of capital adequacy for certain community banking organizations, consistent with section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. Under the proposal, most depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets, that meet risk-based qualifying criteria, and that have a community bank leverage ratio (as defined in the proposal) of greater than 9 percent would be eligible to opt into a community bank leverage ratio framework. Such banking organizations that elect to use the community bank leverage ratio and that maintain a community bank leverage ratio of greater than 9 percent would not be subject to other risk-based and leverage capital requirements and would be considered to have met the well capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act and regulations implementing that section, as applicable, and the generally applicable capital requirements underthe agencies’ capital rule.

FR Doc:
Date proposed: November 21, 2018
Comments due date:

April 9, 2019

Final rule effective date:
Rule compliance date:
Agency release:

Agencies propose community bank leverage ratio for qualifying community banking organizations

Related Reg Report item(s):

‘Simple’ capital adequacy measure for banks, BHCs under $10 billion proposed

Proposal to apply CBLR framework to deposit insurance assessments noted in new FDIC letter

Be the first to comment

Leave a Reply

Your email address will not be published.