Joint Release
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release September 27, 2017
Agencies Propose Simplifying Regulatory Capital Rules
The federal banking agencies on Wednesday proposed a rule intended to reduce regulatory burden by
simplifying several requirements in the agencies' regulatory capital rule.
Most aspects of the proposed rule would apply only to banking organizations that are not subject to the
"advanced approaches" in the capital rule, which are generally firms with less than $250 billion in total
consolidated assets and less than $10 billion in total foreign exposure.
The proposal would simplify and clarify a number of the more complex aspects of the existing capital rule.
Specifically, the proposed rule simplifies the capital treatment for certain acquisition, development, and
construction loans, mortgage servicing assets, certain deferred tax assets, investments in the capital
instruments of unconsolidated financial institutions, and minority interest.
The proposed rule is consistent with the Economic Growth and Regulatory Paperwork Reduction Act
report issued by the agencies earlier this year. In that report, the agencies committed to meaningfully
reducing regulatory burden, especially on community banking organizations, while at the same time
maintaining safety and soundness and the quality and quantity of regulatory capital in the banking
system.
Comments on this proposal will be accepted for 60 days after publication in the Federal Register.
###
Attachments:
• Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork
Reduction Act of 1996
• Community Bank Summary of the Proposal
• Capital Simplifications NPR Estimation Tool
Media Contacts:
Federal Reserve Eric Kollig 202-452-2955
FDIC Barbara Hagenbaugh 202-898-6993
OCC Bryan Hubbard 202-649-6870
FDIC: PR-71-2017
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release September 27, 2017
Agencies Propose Simplifying Regulatory Capital Rules
The federal banking agencies on Wednesday proposed a rule intended to reduce regulatory burden by
simplifying several requirements in the agencies' regulatory capital rule.
Most aspects of the proposed rule would apply only to banking organizations that are not subject to the
"advanced approaches" in the capital rule, which are generally firms with less than $250 billion in total
consolidated assets and less than $10 billion in total foreign exposure.
The proposal would simplify and clarify a number of the more complex aspects of the existing capital rule.
Specifically, the proposed rule simplifies the capital treatment for certain acquisition, development, and
construction loans, mortgage servicing assets, certain deferred tax assets, investments in the capital
instruments of unconsolidated financial institutions, and minority interest.
The proposed rule is consistent with the Economic Growth and Regulatory Paperwork Reduction Act
report issued by the agencies earlier this year. In that report, the agencies committed to meaningfully
reducing regulatory burden, especially on community banking organizations, while at the same time
maintaining safety and soundness and the quality and quantity of regulatory capital in the banking
system.
Comments on this proposal will be accepted for 60 days after publication in the Federal Register.
###
Attachments:
• Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork
Reduction Act of 1996
• Community Bank Summary of the Proposal
• Capital Simplifications NPR Estimation Tool
Media Contacts:
Federal Reserve Eric Kollig 202-452-2955
FDIC Barbara Hagenbaugh 202-898-6993
OCC Bryan Hubbard 202-649-6870
FDIC: PR-71-2017