Banking agencies allow more time — to January — for comments on large bank capital proposal

The comment period on the large bank capital proposal by the federal banking regulators is now extended to Jan. 16, the three agencies announced Friday.

The previous comment period deadline for the regulatory capital rule on large banking organizations and those with significant trading activity was Nov. 30.

The proposal, proposed in late August and published in the Federal Register Sept. 18, is designed to increase the strength and resilience of the banking system, the agencies said in a release Friday. They said the comment period would allow interested parties more time to analyze the issues and prepare their comments.

The Federal Reserve also said it extended the comment period to Jan. 16 for its proposal modifying the capital surcharge for the largest and most complex banks. It also had, originally, a comment due date of Nov. 30.

When the large bank capital proposal was published in the Federal Register, the three agencies said it is designed to improve the calculation of risk-based capital requirements to do four things: better reflect the risks of these banking organizations’ exposures, reduce the complexity of the capital framework, enhance the consistency of requirements across these banking organizations, and facilitate more effective supervisory and market assessments of capital adequacy.

The proposal would also, the agencies said, replace current requirements that include the use of banking organizations’ internal models for credit risk and operational risk with standardized approaches and replace the current market risk and credit valuation adjustment risk requirements with revised approaches.

The proposal, the agencies pointed out, would not change capital requirements for smaller, less complex banking organizations.

Agencies Extend Comment Period on Proposed Rules to Strengthen Large Bank Capital Requirements