Agencies Extend Comment Period on Regulatory Capital Proposals

WASHINGTON—The federal banking regulators announced today they have extended the comment period until October 22, 2012, on three notices of proposed rulemaking (NPRs) that would revise and replace the agencies' current capital rules.

The proposals have been available on the Websites of the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency. The first NPR, "Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Minimum Regulatory Capital Ratios, Capital Adequacy, Transition Provisions, and Prompt Corrective Action" (Basel III NPR), would strengthen minimum requirements for the level and quality of banking organizations' regulatory capital. The second NPR, "Regulatory Capital Rules: Advanced Approaches Risk-based Capital Rule; Market Risk Capital Rule" (Advanced Approaches and Market Risk NPR), proposes changes to the agencies' Advanced Approaches Basel III capital regulation and would apply the agencies' Market Risk capital regulations to thrift institutions and thrift holding companies if stated thresholds for trading activity are met. A third NPR, "Regulatory Capital Rules: Standardized Approach for Risk-weighted Assets; Market Discipline and Disclosure Requirements" (Standardized Approach NPR), proposes changes to the calculation of risk-weighted assets that address issues identified in the financial crisis, and removes reliance on credit ratings consistent with the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The comment period was extended to allow interested persons more time to understand, evaluate, and prepare comments on the proposals. Originally, comments were due by September 7, 2012.

Related Links

• Basel III NPR (PDF)
• Advanced Approaches and Market Risk NPR (PDF)
• Standardized Approach NPR (PDF)