The Office of the Comptroller of the Currency, Federal Reserve System and FDIC adopted amendments designed to simplify certain aspects of the capital rule for a banking organization that does not use advanced approaches in its capital framework.
Pursuant to the amendments, 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 a 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 amendments will go into effect on April 1, 2020.
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.