Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official. 
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure. 
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
INACTIVE
This page is no longer active. Its content has expired or been rescinded by the FDIC.
Financial Institution Letter

Capital Standards


TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Final Rule Revising Risk-Based and Leverage Capital Standards

The Federal Deposit Insurance Corporation (FDIC) Board of Directors has approved the attached final rule revising the risk-based and leverage capital standards. The final rule will take effect April 1, 1999. However, institutions may choose to apply the rule beginning March 2, 1999.

The FDIC's rule is being issued jointly with the rules of the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. The agencies' rule changes will eliminate inconsistencies in the risk-based capital treatment of:

  • Construction loans on presold residential properties,
  • Real estate loans secured by junior liens on 1- to 4-family residential real estate, and
  • Investments in mutual funds.

The final rule will also simplify and make uniform the agencies' Tier 1 leverage capital standards.

For more information, please contact Examination Specialists Stephen G. Pfeifer (202-898-8904) or Carol L. Liquori (202-898-7289) in the FDIC's Division of Supervision.

James L. Sexton
Director


Attachments:  March 2, 1999 Federal Register , Vol. 64, No. 40, pages 10193-10201
HTML Format PDF Format (70 Kb - PDF help or hard copy )

Distribution:   FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).


FIL-19-99

Last Updated: March 2, 1999