[Federal Register Volume 78, Number 5 (Tuesday, January 8, 2013)]
[Proposed Rules]
[Pages 1690-1697]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31515]
[[Page 1689]]
Vol. 78
Tuesday,
No. 5
January 8, 2013
Part XXII
Federal Deposit Insurance Corporation
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Semiannual Regulatory Agenda
Federal Register / Vol. 78 , No. 5 / Tuesday, January 8, 2013 /
Unified Agenda
[[Page 1690]]
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Ch. III
Semiannual Agenda of Regulations
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Semiannual regulatory agenda.
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SUMMARY: The Federal Deposit Insurance Corporation (``FDIC'') is hereby
publishing items for the fall 2012 Unified Agenda of Federal Regulatory
and Deregulatory Actions. The agenda contains information about FDIC's
current and projected rulemakings, existing regulations under review,
and completed rulemakings.
FOR FURTHER INFORMATION CONTACT: Persons identified under regulations
listed in the agenda. Unless otherwise noted, the address for all FDIC
staff identified in the agenda is Federal Deposit Insurance
Corporation, 550 17th Street NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: Twice each year, the FDIC publishes an
agenda of regulations to inform the public of its regulatory actions
and to enhance public participation in the rulemaking process.
Publication of the agenda is in accordance with the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.). The FDIC amends its regulations
under the general rulemaking authority prescribed in section 9 of the
Federal Deposit Insurance Act (12 U.S.C. 1819) and under specific
authority granted by the Act and other statutes.
Proposed Rules
Margin and Capital Requirements for Covered Swap Entities (3064-AD79)
The Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, the Farm Credit Administration and the Federal Housing
Finance Agency (collectively the ``Agencies'') are reopening the
comment period for the proposed rule published in the Federal Register
on May 11, 2011 (76 FR 27564) to establish minimum margin and capital
requirements for uncleared swaps and security-based swaps entered into
by swap dealers, major swap participants, security-based swap dealers,
and major security-based swap participants for which one of the
Agencies is the prudential regulator (``Proposed Margin Rule'').
Reopening the comment period that expired on July 11, 2011 will allow
interested persons additional time to analyze and comment on the
Proposed Margin Rule in light of the consultative document on margin
requirements for non-centrally-cleared derivatives recently published
for comment by the Basel Committee on Banking Supervision and the
International Organization of Securities Commissions.
Regulatory Capital Rules (Part 1): Regulatory Capital, Minimum
Regulatory Capital Ratios, Capital Adequacy, Transition Provisions
(3064-AD95)
The Office of the Comptroller of the Currency, Board of Governors
of the Federal Reserve System, and the Federal Deposit Insurance
Corporation (collectively the ``Agencies''), are seeking comment on
three Notices of Proposed Rulemaking (``NPR'') that would revise and
replace the agencies' current capital rules. In this NPR, the agencies
are proposing to revise their risk-based and leverage capital
requirements consistent with agreements reached by the Basel Committee
on Banking Supervision in Basel III: A Global Regulatory Framework for
More Resilient Banks and Banking Systems. The proposed revisions would
include implementation of a new common equity tier 1 minimum capital
requirement, a higher minimum tier 1 capital requirement, and, for
banking organizations subject to the advanced approaches capital rules,
a supplementary leverage ratio that incorporates a broader set of
exposures in the denominator measure. Additionally, consistent with
Basel III, the agencies are proposing to apply limits on a banking
organization's capital distributions and certain discretionary bonus
payments if the banking organization does not hold a specified amount
of common equity tier 1 capital in addition to the amount necessary to
meet its minimum risk-based requirements. This NPR also would establish
more conservative standards for including an instrument in regulatory
capital. As discussed in the proposal, the revisions set forth in this
NPR are consistent with section 171 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act which requires the agencies to
establish minimum risk-based and leverage capital requirements.
Regulatory Capital Rules (Part 2): Standardized Approach for Risk-
Weighted Assets; Market Discipline and Disclosure Requirements (3064-
AD96)
The Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, and the Federal Deposit
Insurance Corporation (collectively, the ``Agencies'') are seeking
comment on three notices of proposed rulemaking (``NPRs'') that would
revise and replace the Agencies' current capital rules.
This NPR (``Standardized Approach NPR'') includes proposed changes
to the agencies' general risk-based capital requirements for
determining risk-weighted assets (that is, the calculation of the
denominator of a banking organization's risk-based capital ratios). The
proposed changes would revise and harmonize the agencies' rules of
calculating risk-weighted assets to enhance risk-sensitivity and
address weaknesses identified over recent years, including by
incorporating certain international capital standards of the Basel
Committee on Banking Supervision (``BCBS'') set forth in the
standardized approach of the ``International Convergence of Capital
Measurement and Capital Standards: A revised Framework'' (Basel II), as
revised by the BCBS between 2006 and 2009, and other proposals
addressed in recent consultative papers of the BCBS.
In this NPR, the Agencies also propose alternatives to credit
ratings for calculating risk-weighted assets for certain assets,
consistent with section 939A of the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010. The revisions include methodologies
for determining risk-weighted assets for residential mortgages,
securitization exposures, and counterparty credit risk. The changes in
the Standardized Approach NPR are proposed to take effect on January 1,
2015, with an option for early adoption. The Standardized Approach NPR
also would introduce disclosure requirements that would apply to top-
tier banking organizations domiciled in the United States with $50
billion or more in total assets, including disclosures related to
regulatory capital instruments.
Regulatory Capital Rules (Part 3): Advanced Approaches Risk-Based
Capital Rules; Market Risk Capital Rule (3064-AD97)
The Office of the Comptroller of the Currency (the ``OCC''), Board
of Governors of the Federal Reserve System (the ``Board''), and the
Federal Deposit Insurance Corporation (the ``FDIC'') (collectively, the
``Agencies'') are seeking comment on three notices of proposed
rulemaking (``NPRs'') that would revise and replace the agencies'
current capital rules.
In this NPR (``Advanced Approaches and Market Risk NPR'') the
Agencies are proposing to revise the advanced approaches risk-based
capital rule to incorporate certain aspects of ``Basel III:
[[Page 1691]]
A Global Regulatory Framework for More Resilient Banks and Banking
Systems'' that the Agencies would apply only to advanced approach
banking organizations. This NPR also proposes other changes to the
advanced approaches rule that the Agencies believe are consistent with
changes by the Basel Committee on Banking Supervision (``BCBS'') to its
``International Convergence of Capital Measurement and Capital
Standards: A Revised Framework,'' as revised by the BCBS between 2006
and 2009, and recent consultative papers published by the BCBS. The
Agencies also propose to revise the advanced approaches risk-based
capital rule to be consistent with Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010 (the ``Dodd-Frank Act''). These
revisions include replacing reference to credit ratings with
alternative standards of creditworthiness consistent with section 939A
of the Dodd-Frank Act.
Additionally, the OCC and FDIC are proposing that the market risk
capital rule be applicable to federal and state savings associations,
and the Board is proposing that the advanced approaches and market risk
capital rules apply to top-tier savings and loan holding companies
domiciled in the United States that meet the applicable thresholds. In
addition, this NPR would codify the market risk rule consistent with
the proposed codification of the other regulatory capital rules across
the three proposals.
Final Rule
Credit Risk Retention (3064-AD74)
The Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, the U.S. Securities and Exchange Commission, the Federal
Housing Finance Agency, and the Department of Housing and Urban
Development (collectively the ``Agencies'') are proposing rules to
implement the credit risk retention requirements of section 15G of the
Securities Exchange Act of 1934 (15 U.S.C. 78o-11), as added by section
941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Section 15G generally requires the securitizer of asset-backed
securities to retain not less than five percent of the credit risk of
the assets collateralizing the asset-backed securities. Section 15G
includes a variety of exemptions from these requirements, including an
exemption for asset-backed securities that are collateralized
exclusively by residential mortgages that qualify as ``qualified
residential mortgages,'' as such term is defined by the Agencies by
rule.
Prohibitions and Restrictions on Proprietary Trading and Certain
Interests in, and Relationships With, Hedge Funds and Private Equity
Funds (3064-AD85)
The Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation and U.S. Securities and Exchange Commission requested
comment on a proposed rule that would implement Section 619 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank
Act'') which contains certain prohibitions and restrictions on the
ability of a banking entity and nonbank financial company supervised by
the Board to engage in proprietary trading and have certain interests
in, or relationships with, a hedge fund or private equity fund.
Incentive-Based Compensation Arrangements (3064-AD86)
The Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, the National Credit Union Administration, the U.S.
Securities Exchange Commission, and the Fair Housing Finance Agency
(collectively the ``Agencies'') proposed a rule to implement section
956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The rule would require the reporting of incentive-based compensation
arrangements by a covered financial institution and prohibit incentive-
based compensation arrangements at a covered financial institution that
provide excessive compensation or that could expose the institution to
inappropriate risks that could lead to material financial loss.
Assessments, Large Bank Pricing (3064-AD92)
On February 7, 2011, the Board adopted a final rule that amended
its assessment regulations, by, among other things, establishing a new
methodology for determining assessment rates for large and highly
complex institutions. The rule uses a scorecard method to determine
large or highly complex institution's assessment rate. One of the
financial ratios used in the scorecard is the ratio of higher-risk
assets to Tier 1 capital and reserves. Higher-risk assets were defined
as the sum of construction and land development (``C&D'') loans,
leveraged loans, subprime loans, and nontraditional mortgage loans. In
developing the definition of higher-risk assets, the FDIC used existing
interagency guidance to define leveraged loans, nontraditional mortgage
loans, and subprime loans, but refined the definitions to ensure
consistency in reporting. In arriving at these definitions, the FDIC
took into account comments that were received in response to the two
notices of proposed rulemaking that led to adoption of the February
2011 rule.
While institutions already reported C&D loan data in their
quarterly reports of condition and income (the ``Call Reports''), they
did not report the data for the other loans, thus requiring new line
items in these reports. Therefore, the February 2011 rule required a
Paperwork Reduction Act of 1995 (``PRA'') notice requesting comment on
proposed revisions to the reports that would provide the data needed by
the FDIC to implement the rule beginning with the June 30, 2011 report
date (the ``March 2011 PRA notice'').
Commenters on the March 2011 PRA notice raised concerns about their
ability to report subprime and leveraged loan data consistent with the
definitions used in the February 2011 rule. They also stated that they
would be unable to report the required data by the June 30, 2011 report
date. These data concerns had not been raised during the rulemaking
process leading up to the February 2011 rule.
As a consequence of this unexpected difficulty, the FDIC issued
guidance to large and highly complex institutions instructing them to
identify and report subprime and leveraged loans and securitizations
using either their existing internal methodologies or the definitions
in existing supervisory guidance for a transition period. During the
transition period, the FDIC would review the definitions of subprime
and leveraged loans to determine whether changes to the definitions
would alleviate commenters concerns without sacrificing accuracy in
determining risk for deposit insurance pricing purposes.
As part of the review, staff considered all comments related to the
higher-risk asset definitions submitted in response to the March 2011
PRA notice and a later July 2011 PRA notice. Staff also engaged in
extensive discussions with bankers and industry trade groups to better
understand their concerns and to solicit potential solutions to these
concerns. As a result, the Board issued a notice of proposed rulemaking
on March 20, 2012 (the ``NPR'') on which this final rule is based.
While the FDIC received only 14 comment letters on the NPR, some of
the comments were extensive and detailed. The final rule generally
[[Page 1692]]
follows the proposal in the NPR, but makes some changes that reflect
these comments. The goal of the final rule is to ensure that the
assessment system captures the risk inherent in higher-risk assets
without imposing unnecessary reporting burden.
Long Term Actions
Recordkeeping Rules for Institutions Operating Under the Exceptions or
Exemptions for Banks From the Definitions of ``Broker'' or ``Dealer''
in the Securities Exchange Act of 1934 (3064-AD80)
The Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, and the Federal Deposit
Insurance Corporation requested comment on recordkeeping rules for
banks, savings associations, federal and state-licensed branches and
agencies of foreign banks, and Edge and agreement corporations that
engage in securities-related activities under the statutory exceptions
or regulatory exemptions for ``banks'' from the definitions of
``broker'' or ``dealer'' in section 3(a)(4)(B) or section 3(a)(5) of
the Securities Exchange Act of 1934. The rule is designed to facilitate
and promote compliance with these exceptions and exemptions.
Completed Actions
Risk-Based Capital Guidelines; Market Risk; Alternatives to Credit
Ratings for Debt and Securitization Positions (3064-AD70)
The Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, and the Federal Deposit
Insurance Corporation are revising their market risk capital rules to
better capture positions for which the market risk capital rules are
appropriate; reduce procyclicality; enhance the rules' sensitivity to
risks that are not adequately captured under current methodologies; and
increase transparency through enhanced disclosures. The final rules do
not include all of the methodologies adopted by the Basel Committee on
Banking Supervision for calculating the standardized specific risk
capital requirements for debt and securitization positions due to their
reliance on credit ratings, which is impermissible under the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010. Instead, the
final rule includes alternative methodologies for calculating
standardized specific risk capital requirements for debt and
securitization positions.
Transfer and Redesignation of Certain Regulations Involving State
Savings Associations Pursuant to the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010 (3064-AD82)
Consistent with the authority provided to the Federal Deposit
Insurance Corporation (the ``FDIC'') by the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010, and other statutory
authorities, the FDIC is reissuing and redesigning certain transferring
Office of Thrift Supervision (``OTS'') regulations currently found in
title 12, chapter V of the Code of Federal Regulations. In republishing
these rules, the FDIC is making only technical changes to existing OTS
regulations (such as nomenclature or address changes), and eliminating
those OTS regulations for which other appropriate Federal banking
agencies are authorized to act. In the future, the FDIC may take other
actions related to the transferred rules: incorporating them into other
FDIC regulations contained in title 12, chapter III, amending them, or
rescinding them, as appropriate.
Disclosure of Information; Privacy Act Regulations; Notice and
Amendments (3064-AD83)
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the
``Act'') abolished the Office of Thrift Supervision (``OTS'') and
redistributed, as of July 21, 2011, the statutorily prescribed transfer
date (``Transfer Date''), the functions and regulations of the OTS
relating to savings and loan holding companies, Federal savings
associations, and State savings associations to the Board of Governors
of the Federal Reserve System, the Office of the Comptroller of the
Currency, and the Federal Deposit Insurance Corporation (the ``FDIC''),
respectively. The FDIC has determined that, effective on the Transfer
Date, the OTS Freedom of Information Act (``FOIA'') and Privacy Act
(``PA'') regulations will not be enforced by the FDIC and that,
instead, all FOIA and PA issues will be addressed under the FDIC's
regulations involving disclosure of information and the PA, as amended.
In taking this action the FDIC's goal is to avoid potential confusion
and uncertainty that may arise regarding information concerning State
savings associations after the Transfer Date.
Calculation of Maximum Obligation Limitation (3064-AD84)
The Federal Deposit Insurance Corporation and the Departmental
Offices of the Department of the Treasury are issuing the final rule to
implement applicable provisions of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (the ``Dodd-Frank Act''). The Final Rule
governs the calculation of the maximum obligation limitation (``MOL''),
as specified in the Dodd-Frank Act. The MOL limits the aggregate amount
of outstanding obligations that the FDIC may issue or incur in
connection with the orderly liquidation of a covered financial company.
Permissible Investments for Federal and State Savings Associations:
Corporate Debt Securities (3064-AD88)
This final rule amends Federal Deposit Insurance Corporation
(``FDIC'') regulations to prohibit any insured savings association from
acquiring or retaining a corporate debt security unless it determines,
prior to acquiring such security and periodically thereafter, that the
issuer has adequate capacity to meet all financial commitments under
the security for the projected life of the investment. An issuer would
satisfy this requirement if, based on the assessment of the savings
association, the issuer presents a low risk of default and is likely to
make full and timely repayment of principal and interest. This final
rule adopts the proposed creditworthiness standard with the clarifying
revision described below. In the final rule, the phrase ``projected
life of the investment'' has been revised to ``projected life of the
security'' to more closely track the language in the Office of the
Comptroller of the Currency's (``OCC'') final rule. The clarifying
revision addresses ambiguities in the proposed rule and harmonizes the
final rule with the final rule adopted by the OCC regarding permissible
investments for national banks.
Mutual Insurance Holding Company Treated as Insurance Company (3064-
AD89)
The Federal Deposit Insurance Corporation (the ``FDIC'') is issuing
a final rule that treats a mutual insurance holding company as an
insurance company for purposes of Section 203(e) of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (the ``Dodd-Frank Act''). The
final rule clarifies that the liquidation and rehabilitation of a
covered financial company that is a mutual insurance holding company
will be conducted in the same manner as an insurance company. The final
rule harmonizes the treatment of mutual insurance holding companies
under Section 203(e) of the Dodd-Frank Act. The comment period for the
NPR closed on February 13,
[[Page 1693]]
2012, and the FDIC received four comment letters. Additionally, the
FDIC held a conference call with representatives of the National
Association of Insurance Commissioners on January 17, 2012 and received
their comments on the NPR. In light of the comments received and
pursuant to the authority granted to it by section 209 of the Dodd-
Frank Act, the FDIC is issuing the Final Rule.
Annual Stress Test (3064-AD91)
The Federal Deposit Insurance Corporation (the ``Corporation'') is
issuing a final rule that implements the requirements of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (the ``Dodd-Frank Act'')
regarding stress tests. The Dodd-Frank Act requires the Corporation to
issue regulations that require FDIC-insured state nonmember banks and
FDIC-insured state-chartered savings associations with total
consolidated assets of more than $10 billion to conduct annual stress
tests, report the results of such stress tests to the Corporation and
the Board of Governors of the Federal Reserve System, and publish a
summary of the results of the stress tests. The final rule requires
large covered banks to conduct annual stress tests beginning on the
effective date of this final rule. The Corporation, however, will delay
implementation of the annual stress test requirements under the final
rule for institutions with total consolidated assets of more than $10
billion but less than $50 billion until September 30, 2013. The final
rule requirement for public disclosure of a summary of the stress
testing results for these institutions will be implemented starting
with the 2014 stress test, with the disclosure occurring during the
period starting June 15 and ending June 30 of 2015.
Qualified Financial Contracts Recordkeeping (3064-AD93)
The U.S. Commodity Futures Trading Commission, the Office of the
Comptroller of the Currency, the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation (``FDIC''),
the U.S. Securities and Exchange Commission, and the Federal Housing
Finance Agency (collectively the ``Agencies'' or ``primary financial
regulatory agencies'') are proposing rules to implement the qualified
financial contract recordkeeping requirements of section 210(c)(8)(H)
of the Dodd Frank Wall Street Reform and Consumer Protection Act (the
``Act'' or the ``Dodd Frank Act''). Section 210(c)(8)(H) provides that,
within 24 months of the enactment of the Act, the Agencies must jointly
prescribe regulations that require financial companies to maintain such
records with respect to qualified financial contracts (as defined in
section 210(c)(8) of the Act) as necessary or appropriate to assist the
FDIC as receiver for a covered financial company to exercise its rights
and fulfill its obligations under the Act. The proposed rules will
state recordkeeping requirements with respect to position-level data,
counterparty level data, legal documentation data and collateral level
data. These data are necessary to enable the FDIC to: (a) Comply with
section 210(c)(9) and (10) of the Act in transferring qualified
financial contracts; (b) assess the consequences of decisions to
transfer, disaffirm or allow the termination of qualified financial
contracts with one or more counterparties, and; (c) determine if any
systemic risks are posed by the transfer, disaffirmance, or termination
of such qualified financial contracts. The recordkeeping requirements
of the proposed rule have been informed by the FDIC's experience with
both large and small portfolios of qualified financial contracts and
its review of large portfolios of insured depository institutions that
were in troubled condition during the recent financial crisis.
Enforcement of Subsidiary and Affiliate Contracts by the FDIC as
Receiver of a Covered Financial Company (3064-AD94)
The Federal Deposit Insurance Corporation (the ``Corporation'') is
issuing a Final Rule that implements section 210(c)(16) of the Dodd-
Frank Wall Street Reform and Consumer Protection Act, codified at 12
U.S.C. section 5390(c)(16), which permits the Corporation, as receiver
for a financial company whose failure would pose a significant risk to
the financial stability of the United States, to enforce contracts of
subsidiaries or affiliates of the covered financial company despite
contract clauses that purport to terminate, accelerate or provide for
other remedies based on the insolvency, financial condition or
receivership of the covered financial company. As a condition to
maintaining these subsidiary or affiliate contracts in full force and
effect, the Corporation as receiver must either: (1) transfer any
supporting obligations of the covered financial company that back the
obligations of the subsidiary or affiliate under the contract (along
with all assets and liabilities that relate to those supporting
obligations) to a bridge financial company or qualified third-party
transferee by the statutory one-business-day deadline; or (2) provide
adequate protection to such contract counterparties. The Final Rule
sets forth the scope and effect of the authority granted under section
210(c)(16), clarifies the conditions and requirements applicable to the
receiver, addresses requirements for notice to certain affected
counterparties and defines key terms.
Federal Deposit Insurance Corporation.
Valerie Best,
Assistant Executive Secretary.
Federal Deposit Insurance Corporation--Final Rule Stage
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Regulation
Sequence No. Title Identifier No.
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517....................... 12 CFR 324 Regulatory 3064-AD95
Capital Rules (Part I):
Regulatory Capital,
Minimum Regulatory
Capital Ratios, Capital
Adequacy, Transition
Provisions.
518....................... 12 CFR 324 Regulatory 3064-AD96
Capital Rules (Part III):
Standardized Approach for
Risk-Weighted Assets;
Market Discipline and
Disclosure Requirements.
519....................... 12 CFR 324 Regulatory 3064-AD97
Capital Rules (Part 3):
Advanced Approaches Risk-
Based Capital Rules;
Market Risk Capital Rule.
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[[Page 1694]]
Federal Deposit Insurance Corporation--Long-Term Actions
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Regulation
Sequence No. Title Identifier No.
------------------------------------------------------------------------
520....................... 12 CFR 342 Recordkeeping 3064-AD80
Rules for Institutions
Operating Under the
Exceptions or Exemptions
for Banks From the
Definitions of ``Broker''
or ``Dealer'' in the
Securities Exchange Act
of 1934.
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FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
Final Rule Stage
517. Regulatory Capital Rules (Part I): Regulatory Capital,
Minimum Regulatory Capital Ratios, Capital Adequacy, Transition
Provisions
Legal Authority: Pub. L. 111--203
Abstract: The Office of the Comptroller of the Currency, Board of
Governors of the Federal Reserve System, and the Federal Deposit
Insurance Corporation (collectively the ``Agencies''), are seeking
comment on three Notices of Proposed Rulemaking (``NPRM'') that would
revise and replace the Agencies' current capital rules. In this NPRM,
the Agencies are proposing to revise their risk-based and leverage
capital requirements consistent with agreements reached by the Basel
Committee on Banking Supervision in Basel III: A Global Regulatory
Framework for More Resilient Banks and Banking Systems. The proposed
revisions would include implementation of a new common equity tier 1
minimum capital requirement, a higher minimum tier 1 capital
requirement, and, for banking organizations subject to the advanced
approaches capital rules, a supplementary leverage ratio that
incorporates a broader set of exposures in the denominator measure.
Additionally, consistent with Basel III, the Agencies are proposing
to apply limits on a banking organization's capital distributions and
certain discretionary bonus payments if the banking organization does
not hold a specified amount of common equity tier 1 capital in addition
to the amount necessary to meet its minimum risk-based requirements.
This NPRM also would establish more conservative standards for
including an instrument in regulatory capital. As discussed in the
proposal, the revisions set forth in this NPRM are consistent with
section 171 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act which requires the Agencies to establish minimum risk-
based and leverage capital requirements.
Timetable:
------------------------------------------------------------------------
Action Date FR Cite
------------------------------------------------------------------------
NPRM................................ 08/30/12 77 FR 169
NPRM Comment Period End............. 10/22/12
Final Rule.......................... 12/00/12
------------------------------------------------------------------------
Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Bobby R. Bean, Chief, Policy Section, Federal
Deposit Insurance Corporation, Washington, DC 20429, Phone: 202 898-
3575.
Mark Handzlik, Senior Attorney, Federal Deposit Insurance
Corporation, Washington, DC 20429, Phone: 202 898-3900.
Michael Phillips, Counsel, Legal Division, Federal Deposit
Insurance Corporation, Washington, DC 20429, Phone: 202 898-3581.
RIN: 3064-AD95
518. Regulatory Capital Rules (Part III): Standardized
Approach for Risk-Weighted Assets; Market Discipline and Disclosure
Requirements
Legal Authority: Pub. L. 111-203
Abstract: The Office of the Comptroller of the Currency, the Board
of Governors of the Federal Reserve System, and the Federal Deposit
Insurance Corporation (collectively, the Agencies) are seeking comment
on three notices of proposed rulemaking (NPRM) that would revise and
replace the agencies' current capital rules.
This NPRM (Standardized Approach NPRM) includes proposed changes to
the Agencies' general risk-based capital requirements for determining
risk-weighted assets (that is, the calculation of the denominator of a
banking organization's risk-based capital ratios). The proposed changes
would revise and harmonize the Agencies' rules of calculating risk-
weighted assets to enhance risk-sensitivity and address weaknesses
identified over recent years, including by incorporating certain
international capital standards of the Basel Committee on Banking
Supervision (BCBS) set forth in the standardized approach of the
``International Convergence of Capital Measurement and Capital
Standards: A Revised Framework'' (Basel II), as revised by the BCBS
between 2006 and 2009, and other proposals addressed in recent
consultative papers of the BCBS.
In this NPRM, the Agencies also propose alternatives to credit
ratings for calculating risk-weighted assets for certain assets,
consistent with section 939A of the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010. The revisions include methodologies
for determining risk-weighted assets for residential mortgages,
securitization exposures, and counterparty credit risk. The changes in
the Standardized Approach NPRM are proposed to take effect on January
1, 2015, with an option for early adoption. The Standardized Approach
NPRM also would introduce disclosure requirements that would apply to
top-tier banking organizations domiciled in the United States with $50
billion or more in total assets, including disclosures related to
regulatory capital instruments.
Timetable:
------------------------------------------------------------------------
Action Date FR Cite
------------------------------------------------------------------------
NPRM................................ 08/30/12 77 FR 52887
Comment Period Extended 11/16/2012.. 10/17/12 77 FR 63763
NPRM Comment Period End 10/22/2012.. 10/22/12
Final Rule.......................... 12/00/12
------------------------------------------------------------------------
Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Bobby R. Bean, Chief, Policy Section, Federal
Deposit Insurance Corporation, Washington, DC 20429, Phone: 202 898-
3575.
Karl Reitz, Senior Capital Markets Specialist, Federal Deposit
Insurance Corporation, 550 17th Street NW., Washington, DC 20429,
Phone: 202 898-6775, Email: [email protected].
Mark Handzlik, Senior Attorney, Federal Deposit Insurance
Corporation, Washington, DC 20429, Phone: 202 898-3900.
Michael Phillips, Counsel, Legal Division, Federal Deposit
Insurance Corporation, Washington, DC 20429, Phone: 202 898-3581.
RIN: 3064-AD96
519. Regulatory Capital Rules (Part 3): Advanced Approaches
Risk-Based Capital Rules; Market Risk Capital Rule
Legal Authority: Pub. L. 111-203
[[Page 1695]]
Abstract: The Office of the Comptroller of the Currency (the
``OCC''), Board of Governors of the Federal Reserve System (the
``Board''), and the Federal Deposit Insurance Corporation (the
``FDIC'') (collectively, the ``Agencies'') are seeking comment on three
notices of proposed rulemaking (NPRMs) that would revise and replace
the Agencies' current capital rules.
In this NPRM (Advanced Approaches and Market Risk NPR) the Agencies
are proposing to revise the advanced approaches risk-based capital rule
to incorporate certain aspects of ``Basel III: A Global Regulatory
Framework for More Resilient Banks and Banking Systems'' that the
agencies would apply only to advanced approach banking organizations.
This NPRM also proposes other changes to the advanced approaches rule
that the agencies believe are consistent with changes by the Basel
Committee on Banking Supervision (``BCBS'') to its ``International
Convergence of Capital Measurement and Capital Standards: A Revised
Framework'' (Basel II), as revised by the BCBS between 2006 and 2009,
and recent consultative papers published by the BCBS. The Agencies also
propose to revise the advanced approaches risk-based capital rule to be
consistent with Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010 (the ``Dodd-Frank Act''). These revisions include replacing
reference to credit ratings with alternative standards of
creditworthiness consistent with section 939A of the Dodd-Frank Act.
Additionally, the OCC and FDIC are proposing that the market risk
capital rule be applicable to federal and state savings associations,
and the Board is proposing that the advanced approaches and market risk
capital rules apply to top-tier savings and loan holding companies
domiciled in the United States that meet the applicable thresholds. In
addition, this NPRM would codify the market risk rule consistent with
the proposed codification of the other regulatory capital rules across
the three proposals.
Timetable:
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Action Date FR Cite
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NPRM................................ 08/30/12 77 FR 52977
NPRM Comment Period End 10/22/2012.. 10/22/12
Final Rule.......................... 12/00/12
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Bobby R. Bean, Chief, Policy Section, Federal
Deposit Insurance Corporation, Washington, DC 20429, Phone: 202 898-
3575.
Ryan Billingsley, Senior Policy Analyst, Federal Deposit Insurance
Corporation, 550 17th Street NW., Washington, DC 20429, Phone: 202 898-
3797, Email: [email protected].
Mark Handzlik, Senior Attorney, Federal Deposit Insurance
Corporation, Washington, DC 20429, Phone: 202 898-3900.
Michael Phillips, Counsel, Legal Division, Federal Deposit
Insurance Corporation, Washington, DC 20429, Phone: 202 898-3581.
RIN: 3064-AD97
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
Long-Term Actions
520. Recordkeeping Rules for Institutions Operating Under the
Exceptions or Exemptions for Banks From the Definitions of ``Broker''
or ``Dealer'' in the Securities Exchange Act of 1934
Legal Authority: 12 U.S.C. 1818; 12 U.S.C. 1819 (Tenth); 12 U.S.C.
1828(t)
Abstract: The Office of the Comptroller of the Currency, the Board
of Governors of the Federal Reserve System, and the Federal Deposit
Insurance Corporation requested comment on recordkeeping rules for
banks, savings associations, federal and state-licensed branches and
agencies of foreign banks, and Edge and agreement corporations that
engage in securities-related activities under the statutory exceptions
or regulatory exemptions for ``banks'' from the definitions of
``broker'' or ``dealer'' in section 3(a)(4)(B) or section 3(a)(5) of
the Securities Exchange Act of 1934. The rule is designed to facilitate
and promote compliance with these exceptions and exemptions.
Timetable:
------------------------------------------------------------------------
Action Date FR Cite
------------------------------------------------------------------------
NPRM................................ To Be Determined
------------------------------------------------------------------------
Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Michael Phillips, Phone: 202 898-3581.
RIN: 3064-AD80
[FR Doc. 2012-31515 Filed 1-7-13; 8:45 am]
BILLING CODE 6714-01-P