The Federal Reserve Board, FDIC and OCC amended the effective date of the "Capital Simplifications Final Rule." The rule affects banking organizations that do not use advanced approaches in their capital framework. Insured depository institutions and depository institution holding companies now may implement the final rule beginning on January 1, 2020, instead of on the previously proposed date of April 1, 2020.
As previously covered, under the rule, a banking organization that does not use advanced approaches in its capital framework will benefit from:
- simplified regulatory capital requirements for (i) mortgage servicing assets, (ii) certain deferred tax assets that are the result of temporary differences and (iii) investments in the capital of financial institutions that are unconsolidated; and
- allowing minority interests to be included in regulatory capital.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
