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.
Several topics have new rules and guidance standards, such as new regulatory capital rules that became effective for all banks January 1, 2015, and the Volcker Rule, which generally prohibits banking entities from engaging in proprietary trading and from investing in, sponsoring, or having certain relationships with a hedge fund, private equity fund, or similar fund. The Volcker Rule, derivatives reforms and other subject areas are associated with Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) reforms.
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 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) Video will be available in a few days.
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).
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
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.