Highlights:
The interim final rule:
- The proposed rule would increase the 3 percent supplementary leverage ratio
requirement contained in the interim final rule titled “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.”
- The new requirements would apply to the largest, most interconnected banking
organizations with at least $700 billion in total consolidated assets at the
top-tier BHC or at least $10 trillion in assets under custody (covered BHCs)
and any insured depository institution subsidiary of these BHCs (covered
IDIs).
-
For covered IDIs, the proposed rule would establish a supplementary leverage
ratio of 6 percent as a “well-capitalized” threshold for prompt
corrective action.
-
For covered BHCs, the proposed rule establishes a capital conservation
buffer composed of tier 1 capital of 2 percent of total leverage exposure;
therefore, these BHCs would need to maintain a supplementary leverage ratio
of 5 percent to avoid restrictions on capital distributions.
- The denominator in the proposed rule would be consistent with total leverage
exposure in the FDIC’s interim final rule on Basel III
-
The federal banking agencies are seeking comment on the proposed
calibration, including whether the increase in leverage requirements would
appropriately complement the increases in the risk-based capital
requirements in the final rule, and whether and how risk-based capital
requirements could be simplified.
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
Attachment:
Regulatory Capital
Rules: Regulatory Capital, Enhanced Supplementary Leverage Ratio Standards
for Certain Bank Holding Companies and their Subsidiary Insured Depository
Institutions (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 (1-877-275-3342 or
703-562-2200).
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