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Inactive Financial Institution Letters

Regulatory Capital Standards
Final Rule Amending the Risk-Based Capital Rules to Reflect the Issuance of FAS 166 and FAS 167
January 21, 2010

Summary: The attached final rule amends the federal banking and thrift regulatory agencies' general risk-based and advanced risk-based capital adequacy frameworks in recognition of the regulatory capital impact of two recently-issued accounting standards from the Financial Accounting Standard Board (FASB)


The final rule:

  • Provides for an optional two-quarter implementation delay, followed by an optional two-quarter partial implementation, of the effect on risk-weighted assets that will result from changes to U.S. generally accepted accounting principles from FAS 166 and FAS 167.
  • Provides for an optional two-quarter delay, followed by an optional two-quarter phase-in, of the application of the agencies' regulatory limit on the inclusion of the allowance for loan and lease losses (ALLL) in Tier 2 capital for the portion of the ALLL associated with the assets a banking organization consolidates as a result of FAS 167.
  • Eliminates the exclusion of certain consolidated asset-backed commercial paper programs from risk-weighted assets.
  • Provides a reservation of authority to permit the agencies to require banking organizations to treat entities that are not consolidated under accounting standards as if they were consolidated for risk-based capital purposes, commensurate with the risk relationship of the banking organization to the structure.

FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer

Related Topics:
Risk-Based Capital Rules
12 CFR Part 325

Summary of Final Rule - PDF (PDF Help)
Final Rule - PDF (PDF Help)

James Weinberger, Senior Policy Analyst, at or (202) 898-7034
Robert Storch, Chief Accountant, at or (202) 898-8906
Mark Handzlik, Senior Attorney, at or (202) 898-3990

FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at

To receive FILs electronically, please visit

Paper copies of FDIC financial institution letters 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).

Last Updated 11/14/2018

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