Financial Institution Letter
FIL-60-2017
November 21, 2017
Regulatory Capital Rules:
Retention of Certain Existing Transition Provisions for Banking Organizations that
Are Not Subject to the Advanced Approaches Capital Rules
Summary: The Federal bank regulatory agencies (the agencies) jointly have issued a final rule to extend
the 2017 transition provisions under the capital rules for certain capital deductions and risk weights as well
as certain minority interest requirements for banking organizations not subject to the advanced
approaches capital rules.
Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial
Institution Letter is applicable to all banking organizations not subject to the advanced approaches capital
rule.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Related Topics:
Capital Adequacy of FDIC-Supervised
Institutions, 12 CFR Part 324 (Regulatory
Capital Rules)
Attachment:
Regulatory Capital Rules: Retention of
Certain Existing Transition Provisions for
Banking Organizations That Are Not
Subject to the Advanced Approaches
Capital Rules
Highlights
The final rule extends the 2017 transition provisions for
regulatory capital deductions and risk weights for:
Mortgage servicing assets;
Deferred tax assets arising from temporary differences
that could not be realized through net operating loss
carrybacks;
Significant investments in the capital of unconsolidated
financial institutions in the form of common stock;
Non-significant investments in the capital of
unconsolidated financial institutions; and
Significant investments in the capital of unconsolidated
financial institutions that are not in the form of common
stock.
The final rule also extends the 2017 transition provisions for
common equity tier 1 minority interest, tier 1 minority interest,
and total capital minority interest exceeding the regulatory
capital rules’ minority interest limitations.
Contact:
Ben Bosco, Chief Capital Policy, at
bbosco@fdic.gov or (202) 898-6853
Michael Maloney, Capital Markets Senior Policy
Analyst, at mmaloney@fdic.gov or (202) 898-6516
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's website at
https://www.fdic.gov/news/news/financial/2017/.
To receive FILs electronically, please visit
https://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 (1-877-275-3342 or
703-562-2200).
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
FIL-60-2017
November 21, 2017
Regulatory Capital Rules:
Retention of Certain Existing Transition Provisions for Banking Organizations that
Are Not Subject to the Advanced Approaches Capital Rules
Summary: The Federal bank regulatory agencies (the agencies) jointly have issued a final rule to extend
the 2017 transition provisions under the capital rules for certain capital deductions and risk weights as well
as certain minority interest requirements for banking organizations not subject to the advanced
approaches capital rules.
Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial
Institution Letter is applicable to all banking organizations not subject to the advanced approaches capital
rule.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Related Topics:
Capital Adequacy of FDIC-Supervised
Institutions, 12 CFR Part 324 (Regulatory
Capital Rules)
Attachment:
Regulatory Capital Rules: Retention of
Certain Existing Transition Provisions for
Banking Organizations That Are Not
Subject to the Advanced Approaches
Capital Rules
Highlights
The final rule extends the 2017 transition provisions for
regulatory capital deductions and risk weights for:
Mortgage servicing assets;
Deferred tax assets arising from temporary differences
that could not be realized through net operating loss
carrybacks;
Significant investments in the capital of unconsolidated
financial institutions in the form of common stock;
Non-significant investments in the capital of
unconsolidated financial institutions; and
Significant investments in the capital of unconsolidated
financial institutions that are not in the form of common
stock.
The final rule also extends the 2017 transition provisions for
common equity tier 1 minority interest, tier 1 minority interest,
and total capital minority interest exceeding the regulatory
capital rules’ minority interest limitations.
Contact:
Ben Bosco, Chief Capital Policy, at
bbosco@fdic.gov or (202) 898-6853
Michael Maloney, Capital Markets Senior Policy
Analyst, at mmaloney@fdic.gov or (202) 898-6516
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's website at
https://www.fdic.gov/news/news/financial/2017/.
To receive FILs electronically, please visit
https://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 (1-877-275-3342 or
703-562-2200).
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990