Regulatory Capital Standards Final Rule Amending the Risk-Based Capital Rules to Reflect the Issuance of FAS 166 and FAS 167
FIL-3-2010 January 21, 2010
The attached final rule amends the federal banking and thrift regulatory agencies' general risk-based and advanced risk-based capital adequacy frameworks in recognition of the regulatory capital impact of two recently-issued accounting standards from the Financial Accounting Standard Board (FASB)
The final rule:
Provides for an optional two-quarter implementation delay, followed by an optional two-quarter partial implementation, of the effect on risk-weighted assets that will result from changes to U.S. generally accepted accounting principles from FAS 166 and FAS 167.
Provides for an optional two-quarter delay, followed by an optional two-quarter phase-in, of the application of the agencies' regulatory limit on the inclusion of the allowance for loan and lease losses (ALLL) in Tier 2 capital for the portion of the ALLL associated with the assets a banking organization consolidates as a result of FAS 167.
Eliminates the exclusion of certain consolidated asset-backed commercial paper programs from risk-weighted assets.
Provides a reservation of authority to permit the agencies to require banking organizations to treat entities that are not consolidated under accounting standards as if they were consolidated for risk-based capital purposes, commensurate with the risk relationship of the banking organization to the structure.
FDIC-Supervised Banks (Commercial and Savings)