Capital Markets Resource Center
Regulatory Capital, Asset Liability Management, Investment Portfolio and Derivatives Activities Supervisory Resources
The Division of Risk Management Supervision’s Capital Markets Branch provides the following pages as an informational resource for bankers and other interested parties on a variety of key capital markets issues.
These resources should give community bankers a centralized toolkit to help them understand new requirements, recent developments and key outstanding rules and guidance. For example, some resources include training videos with presentation slides and helpful “Frequently Asked Questions” documents.
It is important to note that links to international standards and papers issued by the Basel Committee on Banking Supervision are provided for reference. These standards do not represent the domestic rules and regulations, but the U.S. federal banking agencies and at times, other domestic regulators participate in setting these standards and consider them when developing U.S. rules.
The information contained on the Capital Markets Resource Center web pages and its links is not an exhaustive recap of all guidance issued, but should provide community bankers a good basis for understanding existing standards, pending requirements and supervisory expectations.
On March 28, 2019, the FDIC, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System issued a proposal which would amend the capital rule to require advanced approaches banking organizations to deduct from regulatory capital certain investments in certain unsecured debt instruments issued by Global Systemically Important Banks and certain of their subsidiaries for the purposes of meeting minimum Long Term Debt or Total Loss Absorbing Capacity requirements. Comments will be accepted for 60 days following publication in the Federal Register.
- Regulatory Capital Rule: Regulatory Capital Treatment for Investments in Certain Unsecured Debt Instruments of Global Systemically Important U.S. Bank Holding Companies, Certain Intermediate Holding Companies, and Global Systemically Important Foreign Banking Organizations
On December 18, 2018, staff of the Federal banking agencies hosted a national banker teleconference to discuss the Community Bank Leverage Ratio (CBLR). See below for materials.
On November 20, 2018, the FDIC, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System issued a proposal that would establish risk-based categories for determining applicability of requirements under the regulatory capital rules, the liquidity coverage ratio (LCR) rule, and the proposed net stable funding ratio (NSFR) rule for large U.S. banking organizations. The categories would not apply to banking organizations with total consolidated assets less than $100 billion. The comment period would end on January 22, 2019.
- Parts 324 & 329: Proposed Changes to Applicability Thresholds for Regulatory Capital and Liquidity Requirements NPR
On November 20, 2018, the FDIC Board of Directors approved an interagency Notice of Proposed Rulemaking (NPR) that would introduce an optional simplified measure of capital adequacy for qualifying community banking organizations in Part 324, in accordance with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act.
- Regulatory Capital Rule: Capital Simplification for Qualifying Community Banking Organizations
On September 17, 2018, the FDIC Board of Directors approved an interagency Notice of Proposed Rulemaking (NPR) that would revise the definition of an HVCRE exposure in Part 324, in accordance with Section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, and provide interpretations for certain aspects of the revised HCVRE exposure definition.
- Part 324: Regulatory Capital Treatment for High Volatility Commercial Real Estate (HVCRE) Exposures NPR - PDF
On May 15, 2018, staff of the Federal banking agencies hosted a national banker teleconference to discuss the Implementation and Transition of the Current Expected Credit Losses Methodology for Allowances and Related Adjustments to the Regulatory Capital Rules and Conforming Amendments to Other Regulations (CECL Transition NPR). See below for materials.
- Presentation Slides - PDF
- Teleconferencing Recording - Video (Approximate run time: 1 hour, 22 minutes)
On April 17, 2018, the FDIC Board of Directors approved a proposed rulemaking to amend the capital rule in response to forthcoming changes to U.S. GAAP set forth in Accounting Standards Update No. 2016-13, Topic 326, Financial Instruments – Credit Losses (ASU 2016-13). ASU 2016-13 introduces the current expected credit losses methodology (CECL).
- Part 324: CECL Transitions NPR - PDF
- FIL-20-2018 - PDF
- CECL Transition NPR Estimation Tool (19mb) - Excel
On November 21, 2017, the FDIC Board of Directors approved a Final Rule to extend the existing provisions for certain banking organizations for a targeted set of items: mortgage servicing assets, certain deferred tax assets, investments in the capital instruments of unconsolidated financial institutions, and minority interest.
- Part 324: Regulatory Capital Rules: Retention of Certain Existing Transition Provisions for Banking Organizations That Are Not Subject to the Advanced Approaches Capital Rules - PDF
On October 12, 2017, staff of the Federal banking agencies hosted a national banker teleconference to discuss the Proposed Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996. See below for materials:
On September 27, 2017, the FDIC Board of Directors approved a Notice of Proposed Rulemaking that would 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 FDIC has created the below resources to help explain the proposal.
- Regulatory Capital Rule: Simplification to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 – PDF
- Community Bank Summary - PDF
- Capital Simplification NPR Estimator Tool (23mb) - Excel
Excel Help - Information on using Excel.
Excel Help - The Capital Simplification NPR estimator tool is supported by Microsoft® Excel 2010 and later versions. On October 10, 2017, Microsoft® will no longer support Excel 2007 or older versions and it is the FDIC’s expectation that banks will not be using unsupported versions of the product.
PDF Help - Information on downloading and using the PDF reader.
Video Help - Information on viewing videos.