Agencies Adopt Final Amendments Simplifying Capital Rule For Certain Banking Organizations

The Office of the Comptroller of the Currency, Federal Reserve System and FDIC adopted amendments designed to simplify certain aspects of the capital rule for a banking organization that does not use advanced approaches in its capital framework.

Pursuant to the amendments, a banking organization that does not use advanced approaches in its capital framework will benefit from:

• simplified regulatory capital requirements for (i) mortgage servicing assets, (ii) certain deferred tax assets that are a result of temporary differences and (iii) investments in the capital of financial institutions that are unconsolidated; and
• allowing minority interests to be included in regulatory capital.