Banking regulators extend comment period on proposed capital rules

Three federal banking regulators extended the comment period on three notices of proposed rulemaking, or NPRs, that would revise and replace the agencies’ current capital rules.

The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency revised the deadline to Oct. 22. Originally, comments were due by Sept. 7.

The Fed said the proposals are “intended to help ensure banks maintain strong capital positions, enabling them to continue lending to creditworthy households and businesses even after unforeseen losses and during severe economic downturns.”

The Basel Committee on Banking Supervision will determine whether the three capital requirement proposals are compliant with Basel standards.

One of the NPRs strengthens minimum requirements for the level and quality of banking organizations’ regulatory capital. Another proposes changes to the agencies’ advanced approaches Basel III capital regulation and applies the agencies’ market-risk capital regulations to thrift institutions and thrift holding companies if stated thresholds for trading activity are met.

The final NPR proposes changes to the calculation of risk-weighted assets that address issues identified in the financial crisis, and removes reliance on credit ratings consistent with the Dodd-Frank Act.



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