Joint Release
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release July 9, 2019
Agencies Simplify Regulatory Capital Rules
The federal bank regulatory agencies today issued a final rule that reduces regulatory
burden by simplifying several requirements in the agencies' regulatory capital rules.
The simplifications in the final rule only apply to banking organizations that do not use
the "advanced approaches" capital framework, which are generally firms with less than
$250 billion in total consolidated assets and less than $10 billion in total foreign
exposure.
The final rule is intended to simplify and clarify a number of the more complex aspects
of the agencies' existing regulatory capital rules. Specifically, it simplifies the capital
treatment for mortgage servicing assets, certain deferred tax assets, investments in the
capital instruments of unconsolidated financial institutions, and minority interest. The
final rule also would allow bank holding companies and savings and loan holding
companies to redeem common stock without prior approval unless otherwise required.
Proposed revisions to the definition of high-volatility commercial real estate exposure,
which were made in the notice of proposed rulemaking, are being addressed in a
separate rulemaking.
The final rule is consistent with the Economic Growth and Regulatory Paperwork
Reduction Act report issued by the agencies in 2017. In that report, the agencies
committed to meaningfully reducing regulatory burden, especially on community
banking organizations, while at the same time maintaining safety and soundness and
the quality and quantity of regulatory capital in the banking system.
The final rule will be effective as of April 1, 2020, for the amendments to simplify capital
rules, and as of October 1, 2019 for revisions to the pre-approval requirements for the
redemption of common stock and other technical amendments.
# # #
Attachments:
Regulatory Capital Rule: Simplifications to the Capital Rule Pursuant to the Economic
Growth and Regulatory Paperwork Reduction Act of 1996
Media Contacts:
Federal Reserve Darren Gersh 202-452-2955
FDIC Julianne Breitbeil 202-898-6895
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release July 9, 2019
Agencies Simplify Regulatory Capital Rules
The federal bank regulatory agencies today issued a final rule that reduces regulatory
burden by simplifying several requirements in the agencies' regulatory capital rules.
The simplifications in the final rule only apply to banking organizations that do not use
the "advanced approaches" capital framework, which are generally firms with less than
$250 billion in total consolidated assets and less than $10 billion in total foreign
exposure.
The final rule is intended to simplify and clarify a number of the more complex aspects
of the agencies' existing regulatory capital rules. Specifically, it simplifies the capital
treatment for mortgage servicing assets, certain deferred tax assets, investments in the
capital instruments of unconsolidated financial institutions, and minority interest. The
final rule also would allow bank holding companies and savings and loan holding
companies to redeem common stock without prior approval unless otherwise required.
Proposed revisions to the definition of high-volatility commercial real estate exposure,
which were made in the notice of proposed rulemaking, are being addressed in a
separate rulemaking.
The final rule is consistent with the Economic Growth and Regulatory Paperwork
Reduction Act report issued by the agencies in 2017. In that report, the agencies
committed to meaningfully reducing regulatory burden, especially on community
banking organizations, while at the same time maintaining safety and soundness and
the quality and quantity of regulatory capital in the banking system.
The final rule will be effective as of April 1, 2020, for the amendments to simplify capital
rules, and as of October 1, 2019 for revisions to the pre-approval requirements for the
redemption of common stock and other technical amendments.
# # #
Attachments:
Regulatory Capital Rule: Simplifications to the Capital Rule Pursuant to the Economic
Growth and Regulatory Paperwork Reduction Act of 1996
Media Contacts:
Federal Reserve Darren Gersh 202-452-2955
FDIC Julianne Breitbeil 202-898-6895
OCC Paul Ross 202-649-6870
FDIC: PR-60-2019
FDIC: PR-60-2019