Notice of Proposed Rulemakings
Notice of proposed rulemakings that pertain to FDIC-supervised institutions.
- Notice of proposed rulemaking on amendments applicable to large banking organizations and to banking organizations with significant trading activity: interagency proposal that seeks comment on changes to the regulatory capital framework for banking organizations with total assets of $100 billion or more and other banking organizations with significant trading activity
Laws and Regulations
Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.
- Part 324 — Capital Adequacy of FDIC-Supervised Institutions establishes minimum capital requirements and overall capital adequacy standards
- Interim Final Rule on Emergency Capital Investment Program (effective on March 22, 2021) provides that preferred stock issued under the Emergency Capital Investment Program (ECIP) qualifies as additional tier 1 capital and that subordinated debt issued under ECIP qualifies as tier 2 capital under the agencies’ capital rule.
- Revised Current Expected Credit Losses Transition Final Rule (effective 60 days after the date of publication in the Federal Register) delays the estimated impact on regulatory capital stemming from the implementation of Accounting Standards Update No. 2016-13. This final rule is consistent with the interim final rule published in the Federal Register on March 31, 2020, with certain clarifications and minor adjustments
- Final Rule on Eligible Retained Income (ERI) adopts as final the revisions to the definition of eligible retained income made under the interim final rule published in the Federal Register on March 20, 2020, for all depository institutions, bank holding companies, and savings and loan holding companies subject to the agencies’ capital rule. The final rule adopts these interim final rules to make more gradual any automatic limitations on capital distributions that could apply under the agencies’ capital rule with no changes
- Total-Loss Absorbing Capacity Requirements Final Rule (effective April 1, 2021) requires U.S. global systemically important bank holding companies, or GSIBs, as well as U.S. intermediate holding companies of foreign GSIBs, to issue debt with certain features under the Federal Reserve Board’s ‘total loss-absorbing capacity,’ or TLAC, rule. That debt could be used to recapitalize the holding company during bankruptcy or resolution if it were to fail
- Final Rule for Treatment of Certain Emergency Facilities in the Regulatory Capital Rule and the Liquidity Coverage Ratio Rule facilitates use of the Money Market Mutual Fund Liquidity Facility (MMLF) and the Paycheck Protection Program Liquidity Facility (PPPLF)
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Relevant Federal Register Notices incorporated into Part 324 that describe the basis and purpose of the rule and its revisions
- Regulatory Capital Interim Final Rule significantly revised the capital rule in 2013 to improve both the quality and quantity of regulatory capital (This Interim Final Rule was substantively approved as a final rule by the FDIC Board on April 8, 2014)
- Community Bank Leverage Ratio Framework enables certain banking organizations with less than $10 billion in assets to elect a community bank leverage ratio framework in place of the risk-based capital framework
- Regulatory Capital Treatment for High Volatility Commercial Real Estate (HVCRE) Exposures revises the definition of an HVCRE exposure
- Changes to applicability thresholds for regulatory capital and liquidity requirements revises the criteria for determining the applicability of regulatory capital and liquidity requirements for large U.S. banking organizations
- Regulatory Capital Rule: Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996; Revised Effective Date permits banking organizations to either implement the Regulatory Capital Rule: Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 on January 1, 2020 or continue to wait until April 1, 2020
- Implementation and Transition of the Current Expected Credit Losses Methodology for Allowances and Related Adjustments revises Part 324 for the implementation of the Current Expected Credit Losses Methodology and provides for a 3 year transition into regulatory capital
- Revisions to the Definition of Qualifying Master Netting Agreement and Related Definitions amends the definition of “qualifying master netting agreement” in the FDIC’s capital and liquidity rules, and certain related terms in the FDIC’s capital rules to ensure that the regulatory capital and liquidity treatment of qualified financial contracts (QFCs) to which a covered institution is party would not be affected by the restrictions on such QFCs
- Regulatory Capital Rule: Revisions to the Supplementary Leverage Ratio To Exclude Certain Central Bank Deposits of Banking Organizations Predominantly Engaged in Custody, Safekeeping, and Asset Servicing Activities (includes Category III institutions) amends Part 324 to exclude from the supplementary leverage ratio certain funds of banking organizations deposited with central banks if the organization is predominantly engaged in custody, safekeeping, and asset servicing activities
- Revisions to the Supplementary Leverage Ratio (includes Category III institutions) revises total leverage exposure as defined in the 2013 regulatory capital interim final rule
- Revisions to the Definition of Eligible Guarantee
- Enhanced Supplementary Leverage Ratio Standards established the enhanced supplementary leverage ratio
Supervisory Resources
Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to promote safe-and-sound operations.
- Interagency Statement on the Community Bank Leverage Ratio Framework provides information and guidance on the use of the two-quarter grace period under the optional community bank leverage ratio (CBLR) framework when the temporary relief measures affecting the framework expire on December 31, 2021.
- Answers to Frequently Asked Questions about the Impact of LIBOR Transitions on Regulatory Capital Instruments (Issued July 29, 2021)
- Interagency Statement on the Use of Capital and Liquidity Buffers issued in March 2020 encourages banks to use capital and liquidity buffers to support households and businesses
- FAQs on Statement Regarding the Use of Capital and Liquidity Buffers issued in March 2020 clarifies the agencies’ statement encouraging the use of capital and liquidity buffers to support households and businesses
- Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus includes risk-based capital treatment for loans in response to COVID-19
- Frequently Asked Questions for Financial Institutions Affected by the Coronavirus
- Frequently Asked Questions address regulatory capital rules
- Supervisory Guidance on the Capital Treatment of Certain Investments in Covered Funds clarifies interaction between the Regulatory Capital Rule and the Volcker Rule for appropriate capital treatment for investments in certain private equity funds and hedge funds (covered funds)
- Requests from S-Corporation Banks for Dividend Exceptions to the Capital Conservation Buffer describes when the FDIC would expect to approve exception requests by well-rated S-corporation banks that are limited to payment of dividends to cover shareholders tax liabilities
- Regulatory Capital Treatment of Certain Centrally-cleared Derivative Contracts provides supervisory guidance on the regulatory capital treatment of certain centrally-cleared, settled-to-market derivative contracts as certain central counterparties have revised their rulebooks such that variation margin is considered a settlement payment and not collateral
- Advanced Measurement Approach (AMA): Supervisory Guidance highlights key considerations to implement an effective AMA framework focused on internal/external operational loss event data, business environment and internal control factors, and scenario analysis
- Supervisory Review Process of Capital Adequacy (pillar 2) Related to the Implementation of the Basel II Advanced Capital Framework outlines standards for implementation of the advanced approaches rule to calculate minimum risk-based capital
- Simplified Supervisory Formula Approach (SSFA) Securitization Tool assists banks that use the SSFA to calculate risk weights for securitization exposures
- Section 2.1 — Capital of the Risk Management Manual of Examination Policies discusses regulatory capital requirements, components of capital, and examination processes and rating criteria used for safety and soundness examinations
Other Resources
Supplemental information related to safe-and-sound banking operations.
- FDIC’s Supervisory Insights — Summer 2015 article, “Bank Investment in Securitizations: The New Regulatory Landscape in Brief”
- FDIC’s Supervisory Insights — Winter 2013 article, “The New Basel III Definition of Capital: Understanding the Deductions for Investments in Unconsolidated Financial Institutions”
Videos/Webcasts/Teleconferences
Informational videos and recordings of prior webcasts and teleconferences.
- Community Bank Leverage Ratio Framework banker webinar, presentation materials and transcript, and question-and-answer transcript provide information for the optional community bank leverage ratio (CBLR) capital framework for qualifying FDIC-supervised institutions