Temporary Exclusion of U.S. Treasury Securities and Deposits at Federal Reserve Banks From the Supplementary Leverage Ratio

April 14, 2020 Regulation lookup, The Fed 0

Title:
Temporary Exclusion of U.S. Treasury Securities and Deposits at Federal Reserve Banks From the Supplementary Leverage Ratio
Subject: Capital
Agency: Federal Reserve
Status: Interim final rule; request for comments
Summary:
In light of recent disruptions in economic conditions caused by the coronavirus disease 2019 (COVID-19) and current strains in U.S. financial markets, the Board is issuing an interim final rule that revises, on a temporary basis for bank holding companies, savings and loan holding companies, and U.S. intermediate holding companies of foreign banking organizations, the calculation of total leverage exposure, the denominator of the supplementary leverage ratio in the Board’s capital rule, to exclude the on-balance sheet amounts of U.S. Treasury securities and deposits at Federal Reserve Banks. This exclusion has immediate effect and will remain in effect through March 31, 2021. The Board is adopting this interim final rule to allow bank holding companies, savings and loan holding companies, and intermediate holding companies subject to the supplementary leverage ratio increased flexibility to continue to act as financial intermediaries. The tier 1 leverage ratio is not affected by this rulemaking.
FR Doc: 2020-07345
Date proposed:
Comments due date: May 29, 2020
Final rule effective date:

April 14, 2020, through March 31, 2021
Rule compliance date:
Agency release:

Related Reg Report item(s):

Fed will temporarily remove Treasury securities, Reserve Bank deposits from calculation of supplementary leverage ratio