On 1 May 2014, the Office of the Comptroller of the Currency ("OCC"), the Board of Governors of the Federal Reserve System ("Federal Reserve Board") and the Federal Deposit Insurance Corporation ("FDIC") (collectively, "the agencies") announced a notice of proposed rulemaking that would revise the calculation of total leverage exposure in a manner generally consistent with revisions to the international leverage ratio framework published by the Basel Committee on Banking Supervision in January 2014. The supplementary leverage ratio applies to all banking organizations subject to the agencies' advanced approaches risk-based capital framework. The supplementary leverage ratio is the ratio of a banking organization's tier 1 capital to its total leverage exposure, which includes all on-balance-sheet assets and many off-balance-sheet exposures. The most significant changes proposed relate to the treatment of written credit derivatives and the application of credit conversion factors to the amount of certain off-balance-sheet items. The comment period for this notice of proposed rulemaking ends on 13 June 2014.
The full text of the notice of proposed rulemaking is available at:
http://www.gpo.gov/fdsys/pkg/FR-2014-05-01/pdf/2014-09357.pdf.
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