Federal banking regulators have proposed a rule that would extend existing transitional capital treatment for certain regulatory capital deductions and risk weights as they prepare for a forthcoming proposal aimed at simplifying regulatory capital requirements.
The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency announced via a joint press release that the extension would apply to banking organizations that are not subject to the agencies’ advanced approaches Basel-III capital rules, which would be particularly beneficial to community banks.
Get up to speed on what proposals banking regulators have in the works.