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Financial Institution Letter
Regulatory Capital Rules:
Retention of Certain Existing Transition Provisions for Banking Organizations that Are Not Subject to the Advanced Approaches Capital Rules

Summary:

The Federal bank regulatory agencies (the agencies) jointly have issued a final rule to extend the 2017 transition provisions under the capital rules for certain capital deductions and risk weights as well as certain minority interest requirements for banking organizations not subject to the advanced approaches capital rules.

Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter is applicable to all banking organizations not subject to the advanced approaches capital rule.

Highlights:

The final rule extends the 2017 transition provisions for regulatory capital deductions and risk weights for:

  • Mortgage servicing assets;
  • Deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks;
  • Significant investments in the capital of unconsolidated financial institutions in the form of common stock;
  • Non-significant investments in the capital of unconsolidated financial institutions; and
  • Significant investments in the capital of unconsolidated financial institutions that are not in the form of common stock.

The final rule also extends the 2017 transition provisions for common equity tier 1 minority interest, tier 1 minority interest, and total capital minority interest exceeding the regulatory capital rules' minority interest limitations.

Distribution:

  • FDIC-Supervised Institutions

Suggested Routing:

  • Chief Executive Officer
  • Chief Financial Officer
  • Chief Risk Officer

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).


Additional Related Topics:

  • Capital Adequacy of FDIC-Supervised Institutions, 12 CFR Part 324 (Regulatory Capital Rules)
FIL-60-2017
Attachments
Last Updated: November 21, 2017