Bank Regulators Issue Proposed Capital Rules
The Fed, OCC, and the FDIC have issued three notices of proposed rulemaking, to revise and replace the agencies' current capital rules. The first two proposed capital rules would apply to all banks and savings associations, bank holding companies with more than $500 million in assets, and savings and loan holding companies in the U.S. One of the proposals would revise risk-based and leverage capital requirements consistent with Basel III agreements; a second proposal would revise the certain risk-based capital rules. The third proposed rule, which applies to only the largest international banks with significant trading activity, addresses risk-weighted assets and alternatives to credit ratings. A separate final rule for large banks with aggregate trading assets and liabilities of at least 10 percent of total assets or $1 billion amends their calculations for market risk. Although these proposals do not apply to credit unions, Credit Union National Associaiton (CUNA) is reviewing the documents and will provide additional information in an upcoming report.