Vol. 77 Thursday,
No. 169 August 30, 2012
Part II
Department of the Treasury
Office of the Comptroller of the Currency
12 CFR Parts 3, 5, 6, et al.
Federal Reserve System
12 CFR Parts 208, 217, and 225
Federal Deposit Insurance Corporation
12 CFR Parts 324, 325, and 362
Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III,
Minimum Regulatory Capital Ratios, Capital Adequacy, Transition
Provisions, and Prompt Corrective Action; Proposed Rule
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No. 169 August 30, 2012
Part II
Department of the Treasury
Office of the Comptroller of the Currency
12 CFR Parts 3, 5, 6, et al.
Federal Reserve System
12 CFR Parts 208, 217, and 225
Federal Deposit Insurance Corporation
12 CFR Parts 324, 325, and 362
Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III,
Minimum Regulatory Capital Ratios, Capital Adequacy, Transition
Provisions, and Prompt Corrective Action; Proposed Rule
VerDate Mar<15>2010 22:41 Aug 29, 2012 Jkt 226001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\30AUP2.SGM 30AUP2
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52792 Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Proposed Rules
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 3, 5, 6, 165, and 167
[Docket ID OCC–2012–0008]
RIN 1557–AD46
FEDERAL RESERVE SYSTEM
12 CFR Parts 208, 217, and 225
Regulations H, Q, and Y
[Docket No. R–1442]
RIN 7100–AD87
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 324, 325, and 362
RIN 3064–AD95
Regulatory Capital Rules: Regulatory
Capital, Implementation of Basel III,
Minimum Regulatory Capital Ratios,
Capital Adequacy, Transition
Provisions, and Prompt Corrective
Action
AGENCIES: Office of the Comptroller of
the Currency, Treasury; the Board of
Governors of the Federal Reserve
System; and the Federal Deposit
Insurance Corporation.
ACTION: Joint notice of proposed
rulemaking.
SUMMARY: The Office of the Comptroller
of the Currency (OCC), Board of
Governors of the Federal Reserve
System (Board), and the Federal Deposit
Insurance Corporation (FDIC)
(collectively, the agencies) are seeking
comment on three Notices of Proposed
Rulemaking (NPR) that would revise
and replace the agencies’ current capital
rules. In this NPR, the agencies are
proposing to revise their risk-based and
leverage capital requirements consistent
with agreements reached by the Basel
Committee on Banking Supervision
(BCBS) in ‘‘Basel III: A Global
Regulatory Framework for More
Resilient Banks and Banking Systems’’
(Basel III). The proposed revisions
would include implementation of a new
common equity tier 1 minimum capital
requirement, a higher minimum tier 1
capital requirement, and, for banking
organizations subject to the advanced
approaches capital rules, a
supplementary leverage ratio that
incorporates a broader set of exposures
in the denominator measure.
Additionally, consistent with Basel III,
the agencies are proposing to apply
limits on a banking organization’s
capital distributions and certain
discretionary bonus payments if the
banking organization does not hold a
specified amount of common equity tier
1 capital in addition to the amount
necessary to meet its minimum risk-
based capital requirements. This NPR
also would establish more conservative
standards for including an instrument in
regulatory capital. As discussed in the
proposal, the revisions set forth in this
NPR are consistent with section 171 of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank
Act), which requires the agencies to
establish minimum risk-based and
leverage capital requirements.
In connection with the proposed
changes to the agencies’ capital rules in
this NPR, the agencies are also seeking
comment on the two related NPRs
published elsewhere in today’s Federal
Register. The two related NPRs are
discussed further in the SUPPLEMENTARY
INFORMATION.
DATES: Comments must be submitted on
or before October 22, 2012.
ADDRESSES: Comments should be
directed to:
OCC: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by the
Federal eRulemaking Portal or email, if
possible. Please use the title ‘‘Regulatory
Capital Rules: Regulatory Capital,
Implementation of Basel III, Minimum
Regulatory Capital Ratios, Capital
Adequacy, Transition Provisions, and
Prompt Corrective Action’’ to facilitate
the organization and distribution of the
comments. You may submit comments
by any of the following methods:
Federal eRulemaking Portal—
‘‘regulations.gov’’: Go to http://
www.regulations.gov. Click ‘‘Advanced
Search’’. Select ‘‘Document Type’’ of
‘‘Proposed Rule’’, and in ‘‘By Keyword
or ID’’ box, enter Docket ID ‘‘OCC–
2012–0008,’’ and click ‘‘Search’’. If
proposed rules for more than one
agency are listed, in the ‘‘Agency’’
column, locate the notice of proposed
rulemaking for the OCC. Comments can
be filtered by agency using the filtering
tools on the left side of the screen. In the
‘‘Actions’’ column, click on ‘‘Submit a
Comment’’ or ‘‘Open Docket Folder’’ to
submit or view public comments and to
view supporting and related materials
for this rulemaking action.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting or
viewing public comments, viewing
other supporting and related materials,
and viewing the docket after the close
of the comment period.
• Email:
regs.comments@occ.treas.gov.
• Mail: Office of the Comptroller of
the Currency, 250 E Street SW., Mail
Stop 2–3, Washington, DC 20219.
• Fax: (202) 874–5274.
• Hand Delivery/Courier: 250 E Street
SW., Mail Stop 2–3, Washington, DC
20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2012–0008’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish them on Regulations.gov
without change, including any business
or personal information that you
provide such as name and address
information, email addresses, or phone
numbers. Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
notice by any of the following methods:
• Viewing Comments Electronically:
Go to http://www.regulations.gov. Click
‘‘Advanced Search’’. Select ‘‘Document
Type’’ of ‘‘Public Submission’’ and in
‘‘By Keyword or ID’’ box enter Docket ID
‘‘OCC–2012–0008,’’ and click ‘‘Search.’’
If comments from more than one agency
are listed, the ‘‘Agency’’ column will
indicate which comments were received
by the OCC. Comments can be filtered
by Agency using the filtering tools on
the left side of the screen.
• Viewing Comments Personally: You
may personally inspect and photocopy
comments at the OCC, 250 E Street SW.,
Washington, DC 20219. For security
reasons, the OCC requires that visitors
make an appointment to inspect
comments. You may do so by calling
(202) 874–4700. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and to submit to security screening in
order to inspect and photocopy
comments.
• Docket: You may also view or
request available background
documents and project summaries using
the methods described previously.
Board: When submitting comments,
please consider submitting your
comments by email or fax because paper
mail in the Washington, DC, area and at
the Board may be subject to delay. You
may submit comments, identified by
Docket No. R–1430; RIN No. 7100–
AD87, by any of the following methods:
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mstockstill on DSK4VPTVN1PROD with PROPOSALS2
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 3, 5, 6, 165, and 167
[Docket ID OCC–2012–0008]
RIN 1557–AD46
FEDERAL RESERVE SYSTEM
12 CFR Parts 208, 217, and 225
Regulations H, Q, and Y
[Docket No. R–1442]
RIN 7100–AD87
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 324, 325, and 362
RIN 3064–AD95
Regulatory Capital Rules: Regulatory
Capital, Implementation of Basel III,
Minimum Regulatory Capital Ratios,
Capital Adequacy, Transition
Provisions, and Prompt Corrective
Action
AGENCIES: Office of the Comptroller of
the Currency, Treasury; the Board of
Governors of the Federal Reserve
System; and the Federal Deposit
Insurance Corporation.
ACTION: Joint notice of proposed
rulemaking.
SUMMARY: The Office of the Comptroller
of the Currency (OCC), Board of
Governors of the Federal Reserve
System (Board), and the Federal Deposit
Insurance Corporation (FDIC)
(collectively, the agencies) are seeking
comment on three Notices of Proposed
Rulemaking (NPR) that would revise
and replace the agencies’ current capital
rules. In this NPR, the agencies are
proposing to revise their risk-based and
leverage capital requirements consistent
with agreements reached by the Basel
Committee on Banking Supervision
(BCBS) in ‘‘Basel III: A Global
Regulatory Framework for More
Resilient Banks and Banking Systems’’
(Basel III). The proposed revisions
would include implementation of a new
common equity tier 1 minimum capital
requirement, a higher minimum tier 1
capital requirement, and, for banking
organizations subject to the advanced
approaches capital rules, a
supplementary leverage ratio that
incorporates a broader set of exposures
in the denominator measure.
Additionally, consistent with Basel III,
the agencies are proposing to apply
limits on a banking organization’s
capital distributions and certain
discretionary bonus payments if the
banking organization does not hold a
specified amount of common equity tier
1 capital in addition to the amount
necessary to meet its minimum risk-
based capital requirements. This NPR
also would establish more conservative
standards for including an instrument in
regulatory capital. As discussed in the
proposal, the revisions set forth in this
NPR are consistent with section 171 of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank
Act), which requires the agencies to
establish minimum risk-based and
leverage capital requirements.
In connection with the proposed
changes to the agencies’ capital rules in
this NPR, the agencies are also seeking
comment on the two related NPRs
published elsewhere in today’s Federal
Register. The two related NPRs are
discussed further in the SUPPLEMENTARY
INFORMATION.
DATES: Comments must be submitted on
or before October 22, 2012.
ADDRESSES: Comments should be
directed to:
OCC: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by the
Federal eRulemaking Portal or email, if
possible. Please use the title ‘‘Regulatory
Capital Rules: Regulatory Capital,
Implementation of Basel III, Minimum
Regulatory Capital Ratios, Capital
Adequacy, Transition Provisions, and
Prompt Corrective Action’’ to facilitate
the organization and distribution of the
comments. You may submit comments
by any of the following methods:
Federal eRulemaking Portal—
‘‘regulations.gov’’: Go to http://
www.regulations.gov. Click ‘‘Advanced
Search’’. Select ‘‘Document Type’’ of
‘‘Proposed Rule’’, and in ‘‘By Keyword
or ID’’ box, enter Docket ID ‘‘OCC–
2012–0008,’’ and click ‘‘Search’’. If
proposed rules for more than one
agency are listed, in the ‘‘Agency’’
column, locate the notice of proposed
rulemaking for the OCC. Comments can
be filtered by agency using the filtering
tools on the left side of the screen. In the
‘‘Actions’’ column, click on ‘‘Submit a
Comment’’ or ‘‘Open Docket Folder’’ to
submit or view public comments and to
view supporting and related materials
for this rulemaking action.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting or
viewing public comments, viewing
other supporting and related materials,
and viewing the docket after the close
of the comment period.
• Email:
regs.comments@occ.treas.gov.
• Mail: Office of the Comptroller of
the Currency, 250 E Street SW., Mail
Stop 2–3, Washington, DC 20219.
• Fax: (202) 874–5274.
• Hand Delivery/Courier: 250 E Street
SW., Mail Stop 2–3, Washington, DC
20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2012–0008’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish them on Regulations.gov
without change, including any business
or personal information that you
provide such as name and address
information, email addresses, or phone
numbers. Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
notice by any of the following methods:
• Viewing Comments Electronically:
Go to http://www.regulations.gov. Click
‘‘Advanced Search’’. Select ‘‘Document
Type’’ of ‘‘Public Submission’’ and in
‘‘By Keyword or ID’’ box enter Docket ID
‘‘OCC–2012–0008,’’ and click ‘‘Search.’’
If comments from more than one agency
are listed, the ‘‘Agency’’ column will
indicate which comments were received
by the OCC. Comments can be filtered
by Agency using the filtering tools on
the left side of the screen.
• Viewing Comments Personally: You
may personally inspect and photocopy
comments at the OCC, 250 E Street SW.,
Washington, DC 20219. For security
reasons, the OCC requires that visitors
make an appointment to inspect
comments. You may do so by calling
(202) 874–4700. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and to submit to security screening in
order to inspect and photocopy
comments.
• Docket: You may also view or
request available background
documents and project summaries using
the methods described previously.
Board: When submitting comments,
please consider submitting your
comments by email or fax because paper
mail in the Washington, DC, area and at
the Board may be subject to delay. You
may submit comments, identified by
Docket No. R–1430; RIN No. 7100–
AD87, by any of the following methods:
VerDate Mar<15>2010 18:36 Aug 29, 2012 Jkt 226001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 E:\FR\FM\30AUP2.SGM 30AUP2
mstockstill on DSK4VPTVN1PROD with PROPOSALS2