Joint Release
Board of Governors of the Federal Reserve
System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release August 22, 2017
Media Contacts:
Federal Reserve Darren Gersh 202-452-2955
FDIC Barbara Hagenbaugh 202-898-6993
OCC William Grassano 202-649-6870
FDIC: PR-62-2017
Last Updated 8/22/2017 communications@fdic.gov
Federal Banking Agencies Propose Extension of Certain Capital Rule Transitions
In preparation for a forthcoming proposal that would simplify regulatory capital requirements, federal
banking regulators on Tuesday proposed a rule that would extend the existing transitional capital
treatment for certain regulatory capital deductions and risk weights. The extension would apply to banking
organizations that are not subject to the agencies? advanced approaches capital rules.
As part of the recent review of regulations under the Economic Growth and Regulatory Paperwork
Reduction Act, the agencies announced that they are developing a proposal that would simplify the
capital rules to reduce regulatory burden, particularly for community banks. That proposal would simplify
the capital rules? treatment of mortgage servicing assets and other items. However, under the current
capital rules, the transitional treatment for those items is scheduled to be replaced with a different
treatment on January 1, 2018.
As a result, the agencies are proposing to extend the existing transition provisions for a targeted set of
items: mortgage servicing assets, certain deferred tax assets, investments in the capital instruments of
unconsolidated financial institutions, and minority interests. This proposal would prevent the
implementation of the fully phased-in requirements for these items by banking organizations that are not
subject to the advanced approaches capital rules prior to the agencies? consideration of simplification to
the capital rules.
Banking organizations that are not subject to the advanced approaches capital rules are generally those
with less than $250 billion in total consolidated assets and less than $10 billion in total foreign exposure.
Firms that are subject to the advanced approaches rules would not be affected by this proposal and
would remain subject to the fully phased-in requirements for these exposures beginning on January 1,
2018.
Comments on this proposal will be accepted for 30 days after publication in the Federal Register. The
agencies anticipate proposing the simplified regulatory capital requirements in the coming months.
###
Board of Governors of the Federal Reserve
System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release August 22, 2017
Media Contacts:
Federal Reserve Darren Gersh 202-452-2955
FDIC Barbara Hagenbaugh 202-898-6993
OCC William Grassano 202-649-6870
FDIC: PR-62-2017
Last Updated 8/22/2017 communications@fdic.gov
Federal Banking Agencies Propose Extension of Certain Capital Rule Transitions
In preparation for a forthcoming proposal that would simplify regulatory capital requirements, federal
banking regulators on Tuesday proposed a rule that would extend the existing transitional capital
treatment for certain regulatory capital deductions and risk weights. The extension would apply to banking
organizations that are not subject to the agencies? advanced approaches capital rules.
As part of the recent review of regulations under the Economic Growth and Regulatory Paperwork
Reduction Act, the agencies announced that they are developing a proposal that would simplify the
capital rules to reduce regulatory burden, particularly for community banks. That proposal would simplify
the capital rules? treatment of mortgage servicing assets and other items. However, under the current
capital rules, the transitional treatment for those items is scheduled to be replaced with a different
treatment on January 1, 2018.
As a result, the agencies are proposing to extend the existing transition provisions for a targeted set of
items: mortgage servicing assets, certain deferred tax assets, investments in the capital instruments of
unconsolidated financial institutions, and minority interests. This proposal would prevent the
implementation of the fully phased-in requirements for these items by banking organizations that are not
subject to the advanced approaches capital rules prior to the agencies? consideration of simplification to
the capital rules.
Banking organizations that are not subject to the advanced approaches capital rules are generally those
with less than $250 billion in total consolidated assets and less than $10 billion in total foreign exposure.
Firms that are subject to the advanced approaches rules would not be affected by this proposal and
would remain subject to the fully phased-in requirements for these exposures beginning on January 1,
2018.
Comments on this proposal will be accepted for 30 days after publication in the Federal Register. The
agencies anticipate proposing the simplified regulatory capital requirements in the coming months.
###