The Federal Reserve Board, the Office of the Comptroller of the Currency and the FDIC (collectively, the "agencies") proposed amending the definition of "high volatility commercial real estate (HVCRE) exposure" in their respective regulatory capital rules.
The agencies stated that the change is being made to conform the proposed definition to the definition of "high volatility commercial real estate acquisition, development, or construction (HVCRE ADC) loan" pursuant to Section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The proposal also solicits comments on other terms contained in the revised definition of HVCRE.
The changes would apply to all banking organizations that are subject to the agencies' capital rules. Comments will be accepted for 60 days following publication of the proposal in the Federal Register.
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