42069Federal Register / Vol. 85, No. 134 / Monday, July 13, 2020 / Notices
1 See 12 U.S.C. 1831n(c)(1). This report must be
published in the Federal Register. See 12 U.S.C.
1831n(c)(3).
2 Although not required under section 37(c), this
report includes descriptions of certain of the
Continued
or social media, direct or indirect
observation (i.e., in person, video and
audio collections), interviews,
questionnaires, surveys, and focus
groups. DOT will limit its inquiries to
data collections that solicit strictly
voluntary opinions or responses. Steps
will be taken to ensure anonymity of
respondents in each activity covered by
this request.
The results of the data collected will
be used to improve the delivery of
Federal services and programs. It will
include the creation of personas,
customer journey maps, and reports and
summaries of customer feedback data
and user insights. It will also provide
government-wide data on customer
experience that can be displayed on
performance.gov to help build
transparency and accountability of
Federal programs to the customers they
serve.
Method of Collection
DOT will collect this information by
electronic means when possible, as well
as by mail, fax, telephone, technical
discussions, and in-person interviews.
DOT may also utilize observational
techniques to collect this information.
Data
Form Number(s): None.
Type of Review: New.
B. Annual Reporting Burden
Affected Public: Collections will be
targeted to the solicitation of opinions
from respondents who have experience
with the program or may have
experience with the program in the near
future. For the purposes of this request,
‘‘customers’’ are individuals,
businesses, and organizations that
interact with a Federal Government
agency or program, either directly or via
a Federal contractor. This could include
individuals or households; businesses
or other for-profit organizations; not-for-
profit institutions; State, local or tribal
governments; Federal government; and
Universities.
Estimated Number of Respondents:
2,001,550.
Estimated Time per Response: Varied,
dependent upon the data collection
method used. The possible response
time to complete a questionnaire or
survey may be 3 minutes or up to 1.5
hours to participate in an interview.
Estimated Total Annual Burden
Hours: 101,125.
Estimated Total Annual Cost to
Public: $0.
C. Public Comments
DOT invites comments on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden (including hours and cost)
of the proposed collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Comments submitted in response to
this notice will be summarized and/or
included in the request for OMB
approval of this information collection;
they also will become a matter of public
record.
Dated: July 2, 2020.
Claire W. Barrett,
Chief Privacy & Information Governance
Officer.
[FR Doc. 2020–14757 Filed 7–10–20; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE
CORPORATION
Joint Report: Differences in
Accounting and Capital Standards
Among the Federal Banking Agencies
as of December 31, 2019; Report to
Congressional Committees
AGENCY: Office of the Comptroller of the
Currency (OCC), Treasury; Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Report to Congressional
Committees.
SUMMARY: The OCC, the Board, and the
FDIC (collectively, the agencies) have
prepared this report pursuant to section
37(c) of the Federal Deposit Insurance
Act. Section 37(c) requires the agencies
to jointly submit an annual report to the
Committee on Financial Services of the
U.S. House of Representatives and to the
Committee on Banking, Housing, and
Urban Affairs of the U.S. Senate
describing differences among the
accounting and capital standards used
by the agencies for insured depository
institutions. Section 37(c) requires that
this report be published in the Federal
Register. The agencies have not
identified any material differences
among the agencies’ accounting and
capital standards applicable to the
insured depository institutions they
regulate and supervise.
FOR FURTHER INFORMATION CONTACT:
OCC: Andrew Tschirhart, Risk Expert,
Capital Policy, (202) 649–6370, Office of
the Comptroller of the Currency, 400 7th
Street SW, Washington, DC 20219.
Board: Juan Climent, Manager, Capital
and Regulatory Policy, (202) 872–7526,
and Donald Gabbai, Lead Financial
Institution Policy Analyst, (202) 452–
3358, Division of Supervision and
Regulation, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
FDIC: Benedetto Bosco, Chief, Capital
Policy Section, (202) 898–6853, Richard
Smith, Capital Policy Analyst, Capital
Policy Section, (202) 898–6931, Division
of Risk Management Supervision,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429.
SUPPLEMENTARY INFORMATION: The text of
the report follows:
Report to the Committee on Financial
Services of the U.S. House of
Representatives and to the Committee
on Banking, Housing, and Urban
Affairs of the U.S. Senate Regarding
Differences in Accounting and Capital
Standards Among the Federal Banking
Agencies
Introduction
Under section 37(c) of the Federal
Deposit Insurance Act (section 37(c)),
the Office of the Comptroller of the
Currency (OCC), the Board of Governors
of the Federal Reserve System (Board),
and the Federal Deposit Insurance
Corporation (FDIC) (collectively, the
agencies) must jointly submit an annual
report to the Committee on Financial
Services of the U.S. House of
Representatives and the Committee on
Banking, Housing, and Urban Affairs of
the U.S. Senate that describes any
differences among the accounting and
capital standards established by the
agencies for insured depository
institutions (institutions).1
In accordance with section 37(c), the
agencies are submitting this joint report,
which covers differences among their
accounting or capital standards existing
as of December 31, 2019, applicable to
institutions.2 In recent years, the
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1 See 12 U.S.C. 1831n(c)(1). This report must be
published in the Federal Register. See 12 U.S.C.
1831n(c)(3).
2 Although not required under section 37(c), this
report includes descriptions of certain of the
Continued
or social media, direct or indirect
observation (i.e., in person, video and
audio collections), interviews,
questionnaires, surveys, and focus
groups. DOT will limit its inquiries to
data collections that solicit strictly
voluntary opinions or responses. Steps
will be taken to ensure anonymity of
respondents in each activity covered by
this request.
The results of the data collected will
be used to improve the delivery of
Federal services and programs. It will
include the creation of personas,
customer journey maps, and reports and
summaries of customer feedback data
and user insights. It will also provide
government-wide data on customer
experience that can be displayed on
performance.gov to help build
transparency and accountability of
Federal programs to the customers they
serve.
Method of Collection
DOT will collect this information by
electronic means when possible, as well
as by mail, fax, telephone, technical
discussions, and in-person interviews.
DOT may also utilize observational
techniques to collect this information.
Data
Form Number(s): None.
Type of Review: New.
B. Annual Reporting Burden
Affected Public: Collections will be
targeted to the solicitation of opinions
from respondents who have experience
with the program or may have
experience with the program in the near
future. For the purposes of this request,
‘‘customers’’ are individuals,
businesses, and organizations that
interact with a Federal Government
agency or program, either directly or via
a Federal contractor. This could include
individuals or households; businesses
or other for-profit organizations; not-for-
profit institutions; State, local or tribal
governments; Federal government; and
Universities.
Estimated Number of Respondents:
2,001,550.
Estimated Time per Response: Varied,
dependent upon the data collection
method used. The possible response
time to complete a questionnaire or
survey may be 3 minutes or up to 1.5
hours to participate in an interview.
Estimated Total Annual Burden
Hours: 101,125.
Estimated Total Annual Cost to
Public: $0.
C. Public Comments
DOT invites comments on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden (including hours and cost)
of the proposed collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Comments submitted in response to
this notice will be summarized and/or
included in the request for OMB
approval of this information collection;
they also will become a matter of public
record.
Dated: July 2, 2020.
Claire W. Barrett,
Chief Privacy & Information Governance
Officer.
[FR Doc. 2020–14757 Filed 7–10–20; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE
CORPORATION
Joint Report: Differences in
Accounting and Capital Standards
Among the Federal Banking Agencies
as of December 31, 2019; Report to
Congressional Committees
AGENCY: Office of the Comptroller of the
Currency (OCC), Treasury; Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Report to Congressional
Committees.
SUMMARY: The OCC, the Board, and the
FDIC (collectively, the agencies) have
prepared this report pursuant to section
37(c) of the Federal Deposit Insurance
Act. Section 37(c) requires the agencies
to jointly submit an annual report to the
Committee on Financial Services of the
U.S. House of Representatives and to the
Committee on Banking, Housing, and
Urban Affairs of the U.S. Senate
describing differences among the
accounting and capital standards used
by the agencies for insured depository
institutions. Section 37(c) requires that
this report be published in the Federal
Register. The agencies have not
identified any material differences
among the agencies’ accounting and
capital standards applicable to the
insured depository institutions they
regulate and supervise.
FOR FURTHER INFORMATION CONTACT:
OCC: Andrew Tschirhart, Risk Expert,
Capital Policy, (202) 649–6370, Office of
the Comptroller of the Currency, 400 7th
Street SW, Washington, DC 20219.
Board: Juan Climent, Manager, Capital
and Regulatory Policy, (202) 872–7526,
and Donald Gabbai, Lead Financial
Institution Policy Analyst, (202) 452–
3358, Division of Supervision and
Regulation, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
FDIC: Benedetto Bosco, Chief, Capital
Policy Section, (202) 898–6853, Richard
Smith, Capital Policy Analyst, Capital
Policy Section, (202) 898–6931, Division
of Risk Management Supervision,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429.
SUPPLEMENTARY INFORMATION: The text of
the report follows:
Report to the Committee on Financial
Services of the U.S. House of
Representatives and to the Committee
on Banking, Housing, and Urban
Affairs of the U.S. Senate Regarding
Differences in Accounting and Capital
Standards Among the Federal Banking
Agencies
Introduction
Under section 37(c) of the Federal
Deposit Insurance Act (section 37(c)),
the Office of the Comptroller of the
Currency (OCC), the Board of Governors
of the Federal Reserve System (Board),
and the Federal Deposit Insurance
Corporation (FDIC) (collectively, the
agencies) must jointly submit an annual
report to the Committee on Financial
Services of the U.S. House of
Representatives and the Committee on
Banking, Housing, and Urban Affairs of
the U.S. Senate that describes any
differences among the accounting and
capital standards established by the
agencies for insured depository
institutions (institutions).1
In accordance with section 37(c), the
agencies are submitting this joint report,
which covers differences among their
accounting or capital standards existing
as of December 31, 2019, applicable to
institutions.2 In recent years, the
VerDate Sep<11>2014 20:25 Jul 10, 2020 Jkt 250001 PO 00000 Frm 00132 Fmt 4703 Sfmt 4703 E:\FR\FM\13JYN1.SGM 13JYN1
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42070 Federal Register / Vol. 85, No. 134 / Monday, July 13, 2020 / Notices
Board’s capital standards applicable to depository
institution holding companies where such
descriptions are relevant to the discussion of capital
standards applicable to institutions.
3 See 78 FR 62018 (October 11, 2013) (final rule
issued by the OCC and the Board); 78 FR 55340
(September 10, 2013) (interim final rule issued by
the FDIC). The FDIC later issued its final rule in 79
FR 20754 (April 14, 2014). The agencies’ respective
capital rules are at 12 CFR part 3 (OCC), 12 CFR
part 217 (Board), and 12 CFR part 324 (FDIC). These
capital rules apply to institutions, as well as to
certain bank holding companies and savings and
loan holding companies. See 12 CFR 217.1(c).
4 The capital rules reflect the scope of each
agency’s regulatory jurisdiction. For example, the
Board’s capital rule includes requirements related
to bank holding companies, savings and loan
holding companies, and state member banks, while
the FDIC’s capital rule includes provisions for state
nonmember banks and state savings associations,
and the OCC’s capital rule includes provisions for
national banks and federal savings associations.
5 See e.g., 84 FR 35234 (July 22, 2019). The OCC
and FDIC revised their capital rules to conform with
language in the Board’s capital rule related to the
qualification criteria for additional tier 1 capital
instruments and the definition of corporate
exposures. As a result, these differences, which
were included in the previous report submitted by
the agencies pursuant to section 37(c), have been
eliminated.
6 Certain minor differences, such as terminology
specific to each agency for the institutions that it
supervises, are not included in this report.
7 See 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12
CFR 324.2 (FDIC).
8 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12 CFR
324.2 (FDIC).
9 12 CFR 217.2.
10 12 CFR 217.20(b)(1)(v) and 217.20(c)(1)(viii)
(Board).
11 See 12 CFR 217.20(b)(1)(v) and
217.20(c)(1)(viii) (Board); 12 CFR 324.20(b)(1)(v)
and 324.20(c)(1)(viii) (FDIC). Although not
referenced in the capital rule, the OCC has similar
restrictions on dividends; see 12 CFR 5.55 and 12
CFR 5.63.
12 12 CFR 217.20(f).
13 See 12 CFR 5.46, 5.47, 5.55, and 5.56 (OCC);
12 CFR 208.5 (Board); 12 CFR 303.241 and 12 CFR
390.345 (incorporated into 12 CFR 303.241,
effective Feb. 20, 2020 (85 FR 3232 (Jan. 21, 2020)))
(FDIC).
agencies have acted together to
harmonize their accounting and capital
standards and eliminate as many
differences as possible. As of December
31, 2019, the agencies have not
identified any material differences
among the agencies’ accounting
standards applicable to institutions.
In 2013, the agencies revised the risk-
based and leverage capital rules for
institutions (capital rules),3 which
harmonized the agencies’ capital rules
in a comprehensive manner.4 Since
2013, the agencies have revised the
capital rules on several occasions,
further reducing the number of
differences in the agencies’ capital
rules.5 Today, only a few differences
remain, which are statutorily mandated
for certain categories of institutions or
which reflect certain technical,
generally nonmaterial differences
among the agencies’ capital rules. No
new material differences were identified
in the capital standards applicable to
institutions in this report compared to
the previous report submitted by the
agencies pursuant to section 37(c).
Differences in Accounting Standards
Among the Federal Banking Agencies
As of December 31, 2019, the agencies
have not identified any material
differences among themselves in the
accounting standards applicable to
institutions.
Differences in Capital Standards
Among the Federal Banking Agencies
The following are the remaining
technical differences among the capital
standards of the agencies’ capital rules.6
Definitions
The agencies’ capital rules largely
contain the same definitions.7 The
differences that exist generally serve to
accommodate the different needs of the
institutions that each agency charters,
regulates, and/or supervises.
The agencies’ capital rules have
differing definitions of a pre-sold
construction loan. The capital rules of
all three agencies provide that a pre-sold
construction loan means any ‘‘one-to-
four family residential construction loan
to a builder that meets the requirements
of section 618(a)(1) or (2) of the
Resolution Trust Corporation
Refinancing, Restructuring, and
Improvement Act of 1991 (12 U.S.C.
1831n), and, in addition to other
criteria, the purchaser has not
terminated the contract.’’ 8 The Board’s
definition provides further clarification
that, if a purchaser has terminated the
contract, the institution must
immediately apply a 100 percent risk
weight to the loan and report the revised
risk weight in the next quarterly
Consolidated Reports of Condition and
Income (Call Report).9 Similarly, if the
purchaser has terminated the contract,
the OCC and FDIC capital rules would
immediately disqualify the loan from
receiving a 50 percent risk weight, and
would apply a 100 percent risk weight
to the loan. The change in risk weight
would be reflected in the next quarterly
Call Report. Thus, the minor wording
difference between the agencies should
have no practical consequence.
Capital Components and Eligibility
Criteria for Regulatory Capital
Instruments
While the capital rules generally
provide uniform eligibility criteria for
regulatory capital instruments, there are
some textual differences among the
agencies’ capital rules. All three
agencies’ capital rules require that, for
an instrument to qualify as common
equity tier 1 or additional tier 1 capital,
cash dividend payments be paid out of
net income and retained earnings, but
the Board’s capital rule also allows cash
dividend payments to be paid out of
related surplus.10 In addition, both the
Board’s capital rule and the FDIC’s
capital rule include an additional
sentence noting that institutions
regulated by each agency are subject to
restrictions independent of the capital
rule on paying dividends out of surplus
and/or that would result in a reduction
of capital stock.11 These additional
sentences do not create differences in
substance between the agencies’ capital
standards, but rather note that
restrictions apply under separate
regulations. The provision in the
Board’s capital rule that allows
dividends to be paid out of related
surplus is a difference in substance
among the agencies’ capital rules.
However, due to the restrictions on
institutions regulated by the Board in
separate regulations, this additional
language in the Board’s rule has a
practical impact only on bank holding
companies and savings and loan
holding companies and is not a
difference as applied to institutions. As
a result, the agencies apply the criteria
for determining eligibility of regulatory
capital instruments in a manner that
ensures consistent outcomes for
institutions.
In addition, the Board’s capital rule
includes a requirement that a bank
holding company or a savings and loan
holding company must obtain prior
approval before redeeming regulatory
capital instruments.12 This requirement
applies only to a bank holding company
or a savings and loan holding company
and is, therefore, not included in the
OCC and FDIC capital rules. However,
all three agencies require institutions to
obtain prior approval before redeeming
regulatory capital instruments.13 The
additional provision in the Board’s rule,
therefore, only has a practical impact on
bank holding companies and savings
and loan holding companies and is not
a difference as applied to institutions.
Capital Deductions
There is a technical difference
between the FDIC’s capital rule and the
OCC’s and Board’s capital rules with
regard to an explicit requirement for
deduction of examiner-identified losses.
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Board’s capital standards applicable to depository
institution holding companies where such
descriptions are relevant to the discussion of capital
standards applicable to institutions.
3 See 78 FR 62018 (October 11, 2013) (final rule
issued by the OCC and the Board); 78 FR 55340
(September 10, 2013) (interim final rule issued by
the FDIC). The FDIC later issued its final rule in 79
FR 20754 (April 14, 2014). The agencies’ respective
capital rules are at 12 CFR part 3 (OCC), 12 CFR
part 217 (Board), and 12 CFR part 324 (FDIC). These
capital rules apply to institutions, as well as to
certain bank holding companies and savings and
loan holding companies. See 12 CFR 217.1(c).
4 The capital rules reflect the scope of each
agency’s regulatory jurisdiction. For example, the
Board’s capital rule includes requirements related
to bank holding companies, savings and loan
holding companies, and state member banks, while
the FDIC’s capital rule includes provisions for state
nonmember banks and state savings associations,
and the OCC’s capital rule includes provisions for
national banks and federal savings associations.
5 See e.g., 84 FR 35234 (July 22, 2019). The OCC
and FDIC revised their capital rules to conform with
language in the Board’s capital rule related to the
qualification criteria for additional tier 1 capital
instruments and the definition of corporate
exposures. As a result, these differences, which
were included in the previous report submitted by
the agencies pursuant to section 37(c), have been
eliminated.
6 Certain minor differences, such as terminology
specific to each agency for the institutions that it
supervises, are not included in this report.
7 See 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12
CFR 324.2 (FDIC).
8 12 CFR 3.2 (OCC); 12 CFR 217.2 (Board); 12 CFR
324.2 (FDIC).
9 12 CFR 217.2.
10 12 CFR 217.20(b)(1)(v) and 217.20(c)(1)(viii)
(Board).
11 See 12 CFR 217.20(b)(1)(v) and
217.20(c)(1)(viii) (Board); 12 CFR 324.20(b)(1)(v)
and 324.20(c)(1)(viii) (FDIC). Although not
referenced in the capital rule, the OCC has similar
restrictions on dividends; see 12 CFR 5.55 and 12
CFR 5.63.
12 12 CFR 217.20(f).
13 See 12 CFR 5.46, 5.47, 5.55, and 5.56 (OCC);
12 CFR 208.5 (Board); 12 CFR 303.241 and 12 CFR
390.345 (incorporated into 12 CFR 303.241,
effective Feb. 20, 2020 (85 FR 3232 (Jan. 21, 2020)))
(FDIC).
agencies have acted together to
harmonize their accounting and capital
standards and eliminate as many
differences as possible. As of December
31, 2019, the agencies have not
identified any material differences
among the agencies’ accounting
standards applicable to institutions.
In 2013, the agencies revised the risk-
based and leverage capital rules for
institutions (capital rules),3 which
harmonized the agencies’ capital rules
in a comprehensive manner.4 Since
2013, the agencies have revised the
capital rules on several occasions,
further reducing the number of
differences in the agencies’ capital
rules.5 Today, only a few differences
remain, which are statutorily mandated
for certain categories of institutions or
which reflect certain technical,
generally nonmaterial differences
among the agencies’ capital rules. No
new material differences were identified
in the capital standards applicable to
institutions in this report compared to
the previous report submitted by the
agencies pursuant to section 37(c).
Differences in Accounting Standards
Among the Federal Banking Agencies
As of December 31, 2019, the agencies
have not identified any material
differences among themselves in the
accounting standards applicable to
institutions.
Differences in Capital Standards
Among the Federal Banking Agencies
The following are the remaining
technical differences among the capital
standards of the agencies’ capital rules.6
Definitions
The agencies’ capital rules largely
contain the same definitions.7 The
differences that exist generally serve to
accommodate the different needs of the
institutions that each agency charters,
regulates, and/or supervises.
The agencies’ capital rules have
differing definitions of a pre-sold
construction loan. The capital rules of
all three agencies provide that a pre-sold
construction loan means any ‘‘one-to-
four family residential construction loan
to a builder that meets the requirements
of section 618(a)(1) or (2) of the
Resolution Trust Corporation
Refinancing, Restructuring, and
Improvement Act of 1991 (12 U.S.C.
1831n), and, in addition to other
criteria, the purchaser has not
terminated the contract.’’ 8 The Board’s
definition provides further clarification
that, if a purchaser has terminated the
contract, the institution must
immediately apply a 100 percent risk
weight to the loan and report the revised
risk weight in the next quarterly
Consolidated Reports of Condition and
Income (Call Report).9 Similarly, if the
purchaser has terminated the contract,
the OCC and FDIC capital rules would
immediately disqualify the loan from
receiving a 50 percent risk weight, and
would apply a 100 percent risk weight
to the loan. The change in risk weight
would be reflected in the next quarterly
Call Report. Thus, the minor wording
difference between the agencies should
have no practical consequence.
Capital Components and Eligibility
Criteria for Regulatory Capital
Instruments
While the capital rules generally
provide uniform eligibility criteria for
regulatory capital instruments, there are
some textual differences among the
agencies’ capital rules. All three
agencies’ capital rules require that, for
an instrument to qualify as common
equity tier 1 or additional tier 1 capital,
cash dividend payments be paid out of
net income and retained earnings, but
the Board’s capital rule also allows cash
dividend payments to be paid out of
related surplus.10 In addition, both the
Board’s capital rule and the FDIC’s
capital rule include an additional
sentence noting that institutions
regulated by each agency are subject to
restrictions independent of the capital
rule on paying dividends out of surplus
and/or that would result in a reduction
of capital stock.11 These additional
sentences do not create differences in
substance between the agencies’ capital
standards, but rather note that
restrictions apply under separate
regulations. The provision in the
Board’s capital rule that allows
dividends to be paid out of related
surplus is a difference in substance
among the agencies’ capital rules.
However, due to the restrictions on
institutions regulated by the Board in
separate regulations, this additional
language in the Board’s rule has a
practical impact only on bank holding
companies and savings and loan
holding companies and is not a
difference as applied to institutions. As
a result, the agencies apply the criteria
for determining eligibility of regulatory
capital instruments in a manner that
ensures consistent outcomes for
institutions.
In addition, the Board’s capital rule
includes a requirement that a bank
holding company or a savings and loan
holding company must obtain prior
approval before redeeming regulatory
capital instruments.12 This requirement
applies only to a bank holding company
or a savings and loan holding company
and is, therefore, not included in the
OCC and FDIC capital rules. However,
all three agencies require institutions to
obtain prior approval before redeeming
regulatory capital instruments.13 The
additional provision in the Board’s rule,
therefore, only has a practical impact on
bank holding companies and savings
and loan holding companies and is not
a difference as applied to institutions.
Capital Deductions
There is a technical difference
between the FDIC’s capital rule and the
OCC’s and Board’s capital rules with
regard to an explicit requirement for
deduction of examiner-identified losses.
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