Changes approved by banking regulators more than three months ago to a capital requirement for banking organizations predominantly engaged in custodial activities, and which are set to take effect April 1, were finally published Monday in the Federal Register.
The final rule allows certain banking organizations that are predominantly engaged in custody, safekeeping, and asset servicing activities to exclude qualifying deposits at certain central banks from their supplementary leverage ratio.
The rule was approved by the Federal Deposit Insurance Corp. (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency (OCC). The Fed noted at the time that the measure applies only to large or complex internationally active banking organizations.
RR: Rule excluding custodial activities deposits from supplementary leverage ratio issued (Nov. 19, 2019)
Reg lookup: Regulatory Capital Rule: Revisions to the Supplementary Leverage Ratio to Exclude Certain Central Bank Deposits of Banking Organizations Predominantly Engaged in Custody, Safekeeping and Asset Servicing Activities