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Financial Institution Letters

September 27, 2017

Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996

Printable Format:

FIL-45-2017 - PDF (PDF Help)


The federal banking regulatory agencies (the agencies) have jointly issued a proposal intended to simplify aspects of the generally applicable capital rules related to the treatment of acquisition, development or construction (ADC) loans, items subject to threshold deduction, and minority interests includable in regulatory capital, and would make a number of technical corrections. The agencies indicated their intent to address these matters in their joint report to Congress pursuant to the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA).

Statement of Applicability to Institutions with Total Assets Under $1 Billion: This proposal is applicable to all FDIC-supervised institutions. Attached to this FIL is a summary of the proposal and an estimation tool to help community banking organizations evaluate the impact of the proposal. These resources are also available at:


ADC exposures

Threshold deduction items

Minority interest

National Call
The agencies are planning to host a national banker call on October 12. Details to follow.


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Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).