Agencies Propose Technical Corrections and Clarifications to the Capital Rules Applicable to Advanced Approaches Banking Organizations

Joint Release

Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency

The Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency today proposed clarifications to the revised regulatory capital rules adopted by the agencies in July 2013.

The proposal applies only to large internationally active banking organizations that currently determine their regulatory capital ratios under the advanced approaches rule, or may use the advanced approaches rule in the future—generally those with at least $250 billion in total consolidated assets or at least $10 billion in total on-balance sheet foreign exposures.

Specifically, the proposed rule would make technical corrections and clarify certain aspects of the advanced approaches rule, including the qualification criteria and calculation requirements for risk-weighted assets. Many of the proposed changes would better align the advanced approaches rule with the Basel framework and thereby enhance consistency with international capital standards.

Comments must be submitted within 60 days of publication in the Federal Register.

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