PRESS RELEASE
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
December 16, 2009
Media Contact:
Andrew Gray
Office: (202) 898-7192
Cell: (202) 494-1049
E-mail: angray@fdic.gov
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-230-2009
FDIC Board Finalizes Regulatory Capital Rule for Statements of Financial
Accounting Standards
FOR IMMEDIATE RELEASE
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today
finalized the regulatory capital rule related to the Financial Accounting Standards
Board's adoption of Statements of Financial Accounting Standards Nos. 166 and 167.
Beginning in 2010, these new accounting standards will make substantive changes to
how banks account for securitized assets that are currently excluded from their balance
sheets.
The FDIC, working with the other federal bank regulatory agencies, developed this final
rule to better align regulatory capital requirements with the actual risks of certain
exposures. Banks affected by the new accounting standards generally will be subject to
higher minimum regulatory capital requirements. The final rule provides an optional
delay and phase-in for a maximum of one year for the effect on risk-based capital and
the allowance for lease and loan losses related to the assets that must be consolidated
as a result of the accounting change. The final rule also eliminates the risk-based
capital exemption for asset-backed commercial paper assets. The transitional relief
does not apply to the leverage ratio or to assets in conduits to which a bank provides
implicit support.
The rule provides temporary relief from risk-based measures. Banks will be required to
rebuild capital and repair balance sheets to accommodate the new accounting
standards by the middle of 2011.
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
December 16, 2009
Media Contact:
Andrew Gray
Office: (202) 898-7192
Cell: (202) 494-1049
E-mail: angray@fdic.gov
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-230-2009
FDIC Board Finalizes Regulatory Capital Rule for Statements of Financial
Accounting Standards
FOR IMMEDIATE RELEASE
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today
finalized the regulatory capital rule related to the Financial Accounting Standards
Board's adoption of Statements of Financial Accounting Standards Nos. 166 and 167.
Beginning in 2010, these new accounting standards will make substantive changes to
how banks account for securitized assets that are currently excluded from their balance
sheets.
The FDIC, working with the other federal bank regulatory agencies, developed this final
rule to better align regulatory capital requirements with the actual risks of certain
exposures. Banks affected by the new accounting standards generally will be subject to
higher minimum regulatory capital requirements. The final rule provides an optional
delay and phase-in for a maximum of one year for the effect on risk-based capital and
the allowance for lease and loan losses related to the assets that must be consolidated
as a result of the accounting change. The final rule also eliminates the risk-based
capital exemption for asset-backed commercial paper assets. The transitional relief
does not apply to the leverage ratio or to assets in conduits to which a bank provides
implicit support.
The rule provides temporary relief from risk-based measures. Banks will be required to
rebuild capital and repair balance sheets to accommodate the new accounting
standards by the middle of 2011.
"I believe this rule moves in the right direction and will reduce the likelihood of a
recurrence of some of the problems we have experienced in the financial and
securitization markets," said FDIC Chairman Sheila Bair. "The capital relief we are
offering banks for the transition period should ease the impact of this accounting change
on banks' regulatory capital requirements, and enable banks to maintain consumer
lending and credit availability as they adjust their business practices to the new
accounting rules."
Publication in the Federal Register is expected shortly.
Attachment:
Final Rule to Amend the General Risk-Based Capital Rule to Reflect the Issuance of
FAS 166 and FAS 167 - PDF (PDF Help)
recurrence of some of the problems we have experienced in the financial and
securitization markets," said FDIC Chairman Sheila Bair. "The capital relief we are
offering banks for the transition period should ease the impact of this accounting change
on banks' regulatory capital requirements, and enable banks to maintain consumer
lending and credit availability as they adjust their business practices to the new
accounting rules."
Publication in the Federal Register is expected shortly.
Attachment:
Final Rule to Amend the General Risk-Based Capital Rule to Reflect the Issuance of
FAS 166 and FAS 167 - PDF (PDF Help)