Highlights:
The interim final rule:
- Revises minimum capital requirements and adjusts Prompt Corrective Action thresholds.
- Revises the regulatory capital elements, adds a new common equity tier 1 capital ratio, and increases the minimum tier 1 capital ratio requirement from 4 to 6 percent.
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Retains the existing regulatory capital framework for 1-4 family residential mortgage exposures.
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Permits banking organizations that are not subject to the advanced approaches rule to retain, through a one-time election, the existing treatment for accumulated other comprehensive income.
- Implements a new capital conservation buffer.
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Becomes effective January 1, 2015, for most banking organizations, subject to a transition period for several aspects of the rule, including the new minimum capital ratio requirements, the capital conservation buffer, and the regulatory capital adjustments and deductions.
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Increases capital requirements for past-due loans, high volatility commercial real estate exposures, and certain short-term loan commitments.
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Expands the recognition of collateral and guarantors in determining risk-weighted assets.
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Removes references to credit ratings consistent with the Dodd-Frank Wall Street Reform and Consumer Protection Act and establishes due diligence requirements for securitization exposures.
Distribution:
FDIC-Supervised Banks and Savings Associations
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Related Topics:
Risk-Based Capital Rules, 12 CFR Part 325, Basel III
Attachments:
Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action; Standardized Approach for Risk-Weighted Assets; Market Discipline and Disclosure Requirements; Advanced Approaches Risk-Based Capital Rule; and Market Risk Capital Rule (PDF Help)
New Capital Rule Interagency Community Bank Guide (PDF Help)
Contact:
Bobby Bean, Associate Director; Ryan Billingsley, Chief, Capital Policy Section; or Benedetto Bosco, Capital Markets Policy Analyst, Division of Risk Management Supervision, Capital Markets Branch, at bbean@fdic.gov, rbillingsley@fdic.gov, bbosco@fdic.gov, or (202) 898-6888
Note:
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at http://www.fdic.gov/news/news/financial/2013/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies may be obtained via the FDIC's Public Information Center, 3501 Fairfax Drive, E 1002, Arlington, VA 22226 (877-275-3342 or 703 562 2200).
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