Federal Register: Banking Agencies Propose Extending Transitional Regulatory Capital Rules For Smaller Banks

The Office of the Comptroller of the Currency ("OCC"), the Board of Governors of the Federal Reserve System and the FDIC (collectively, the "agencies") proposed extending the current transitional capital treatment of certain regulatory capital deductions, risk weights and minority interest requirements. A request for comments on the proposal was published in the Federal Register. Comments must be submitted by September 25, 2017.

The agencies adopted rules in 2013 that made capital requirements for banking organizations more stringent. Certain rules were subject to transitional provisions that allowed for institutions to make necessary preparations (see previous coverage.) As more fully described in an OCC Bulletin, "the agencies propose to maintain the capital rule's 2017 transition provisions for the regulatory capital treatment of the following items: (i) mortgage servicing assets, (ii) deferred tax assets arising from temporary...