Banking Agencies Propose Extending Transitional Regulatory Capital Rules For Smaller Banks

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the FDIC (collectively, the "agencies") proposed extending the current transitional capital treatment of certain regulatory capital deductions, risk weights and minority interest requirements.

The agencies adopted rules in 2013 that made capital requirements for banking organizations more stringent. These rules established limits on including assets owned by subsidiaries in regulatory capital calculations (minority interest limitations), as well as other mandates for deducting certain assets from an organization's regulatory capital. The rules were subject to transitional provisions that allowed organizations to make appropriate preparations for the new requirements. Some provisions are scheduled to become applicable on December 31, 2017, while others will become applicable on January 1, 2018.