Banking Agencies Extend Transitional Regulatory Capital Rules

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the FDIC (collectively, the "agencies") issued a final rule extending current transitional provisions under the capital rules for certain capital deductions, risk weights and minority interest requirements. The final rule extends provisions that were set to expire at the end of the year. The extension is applicable only to banks that are not subject to the capital rules' advanced approaches (institutions with total assets under $1 billion).

As previously covered, the agencies in 2013 adopted more stringent capital requirements for banking entities and organizations. These rules established certain limits on minority interests (i.e. on including assets owned by subsidiaries in regulatory capital calculations) as well as other mandates for deducting certain assets from an organization's regulatory capital. The rules were subject to transitional provisions