Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-31-2013
July 9, 2013
REGULATORY CAPITAL RULES
Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions,
Prompt Corrective Action; Standardized Approach for Risk-Weighted Assets; Market
Discipline and Disclosure Requirements
Summary: The FDIC has issued the attached interim final rule that revises the existing capital rules to incorporate
certain revisions to the Basel capital framework, including Basel III and other elements. The interim final rule
strengthens the definition of regulatory capital, increases risk-based capital requirements, and makes selected changes
to the calculation of risk-weighted assets. The interim final rule contains regulatory text that is identical to the common
rule text adopted as a final rule by the Board of Governors of the Federal Reserve System and the Office of the
Comptroller of the Currency.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter (FIL) is
applicable to all banks. Attached to this FIL is a summary of the interim final rule for smaller, less complex community
banking organizations. An informational video and an expanded summary on the interim final rule can be found on the
FDIC’s Web site at www.fdic.gov/regulations/capital.
Distribution:
FDIC-Supervised Banks and Savings Associations
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Related Topics:
Risk-Based Capital Rules, 12 CFR Part 325, Basel III
Attachments:
Regulatory Capital Rules: Regulatory Capital,
Implementation of Basel III, Capital Adequacy,
Transition Provisions, Prompt Corrective Action;
Standardized Approach for Risk-Weighted Assets;
Market Discipline and Disclosure Requirements;
Advanced Approaches Risk-Based Capital Rule; and
Market Risk Capital Rule (PDF Help)
New Capital Rule – Interagency Community Bank
Guide (PDF Help)
Contact:
Bobby Bean, Associate Director; Ryan Billingsley,
Chief, Capital Policy Section; or Benedetto Bosco,
Capital Markets Policy Analyst, Division of Risk
Management Supervision, Capital Markets Branch,
at bbean@fdic.gov, rbillingsley@fdic.gov, bbosco@fdi
c.gov, or (202) 898-6888
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site
at www.fdic.gov/news/news/financial/2013/index.html.
To receive FILs electronically,
visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies may be obtained through the FDIC's
Public Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (877-275-3342 or 703 562 2200).
Highlights:
The interim final rule:
Revises minimum capital requirements and adjusts Prompt
Corrective Action thresholds.
Revises the regulatory capital elements, adds a new common
equity tier 1 capital ratio, and increases the minimum tier 1
capital ratio requirement from 4 to 6 percent.
Retains the existing regulatory capital framework for 1-4
family residential mortgage exposures.
Permits banking organizations that are not subject to the
advanced approaches rule to retain, through a one-time
election, the existing treatment for accumulated other
comprehensive income.
Implements a new capital conservation buffer.
Becomes effective January 1, 2015, for most banking
organizations, subject to a transition period for several
aspects of the rule, including the new minimum capital ratio
requirements, the capital conservation buffer, and the
regulatory capital adjustments and deductions.
Increases capital requirements for past-due loans, high
volatility commercial real estate exposures, and certain short-
term loan commitments.
Expands the recognition of collateral and guarantors in
determining risk-weighted assets.
Removes references to credit ratings consistent with the
Dodd-Frank Wall Street Reform and Consumer Protection Act
and establishes due diligence requirements for securitization
exposures.Inactive
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-31-2013
July 9, 2013
REGULATORY CAPITAL RULES
Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions,
Prompt Corrective Action; Standardized Approach for Risk-Weighted Assets; Market
Discipline and Disclosure Requirements
Summary: The FDIC has issued the attached interim final rule that revises the existing capital rules to incorporate
certain revisions to the Basel capital framework, including Basel III and other elements. The interim final rule
strengthens the definition of regulatory capital, increases risk-based capital requirements, and makes selected changes
to the calculation of risk-weighted assets. The interim final rule contains regulatory text that is identical to the common
rule text adopted as a final rule by the Board of Governors of the Federal Reserve System and the Office of the
Comptroller of the Currency.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter (FIL) is
applicable to all banks. Attached to this FIL is a summary of the interim final rule for smaller, less complex community
banking organizations. An informational video and an expanded summary on the interim final rule can be found on the
FDIC’s Web site at www.fdic.gov/regulations/capital.
Distribution:
FDIC-Supervised Banks and Savings Associations
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Related Topics:
Risk-Based Capital Rules, 12 CFR Part 325, Basel III
Attachments:
Regulatory Capital Rules: Regulatory Capital,
Implementation of Basel III, Capital Adequacy,
Transition Provisions, Prompt Corrective Action;
Standardized Approach for Risk-Weighted Assets;
Market Discipline and Disclosure Requirements;
Advanced Approaches Risk-Based Capital Rule; and
Market Risk Capital Rule (PDF Help)
New Capital Rule – Interagency Community Bank
Guide (PDF Help)
Contact:
Bobby Bean, Associate Director; Ryan Billingsley,
Chief, Capital Policy Section; or Benedetto Bosco,
Capital Markets Policy Analyst, Division of Risk
Management Supervision, Capital Markets Branch,
at bbean@fdic.gov, rbillingsley@fdic.gov, bbosco@fdi
c.gov, or (202) 898-6888
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site
at www.fdic.gov/news/news/financial/2013/index.html.
To receive FILs electronically,
visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies may be obtained through the FDIC's
Public Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (877-275-3342 or 703 562 2200).
Highlights:
The interim final rule:
Revises minimum capital requirements and adjusts Prompt
Corrective Action thresholds.
Revises the regulatory capital elements, adds a new common
equity tier 1 capital ratio, and increases the minimum tier 1
capital ratio requirement from 4 to 6 percent.
Retains the existing regulatory capital framework for 1-4
family residential mortgage exposures.
Permits banking organizations that are not subject to the
advanced approaches rule to retain, through a one-time
election, the existing treatment for accumulated other
comprehensive income.
Implements a new capital conservation buffer.
Becomes effective January 1, 2015, for most banking
organizations, subject to a transition period for several
aspects of the rule, including the new minimum capital ratio
requirements, the capital conservation buffer, and the
regulatory capital adjustments and deductions.
Increases capital requirements for past-due loans, high
volatility commercial real estate exposures, and certain short-
term loan commitments.
Expands the recognition of collateral and guarantors in
determining risk-weighted assets.
Removes references to credit ratings consistent with the
Dodd-Frank Wall Street Reform and Consumer Protection Act
and establishes due diligence requirements for securitization
exposures.Inactive