Comptroller Acts to Promote the Safe, Sound, and Fair Operation of the Federal Banking System

WASHINGTON—The Comptroller of the Currency today approved the following interagency final rules to promote the safe, sound, and fair operation of the federal banking system. The final rules will be published in the Federal Register after adoption by the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve System.

• Standardized Approach for Calculating the Exposure Amount of Derivative Contracts—This interagency final rule would revise the regulatory capital rule to implement a new approach for calculating the exposure amount of derivative contracts, which is called the standardized approach for counterparty credit risk (SA-CCR). The final rule would also incorporate SA-CCR into the determination of exposure amount of derivatives for total leverage exposure under the supplementary leverage ratio and the calculation of a banking organization’s exposures to a central counterparty. Further, the final rule would also make technical amendments to the capital rule with respect to cleared transactions.
• Revisions to the Supplementary Leverage Ratio to Exclude Certain Central Bank Deposits of Banking Organizations Predominantly Engaged in Custody, Safekeeping and Asset Servicing Activities—Pursuant to section 402 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), this interagency final rule would amend the supplementary leverage ratio to exclude certain funds of banking organizations deposited with qualifying central banks, if the banking organization is predominantly engaged in custody, safekeeping, and asset servicing activities.
• Regulatory Capital Treatment for High Volatility Commercial Real Estate (HVCRE) Exposures—Pursuant to Section 214 of the EGRRCPA, this interagency final rule would revise the capital rule to conform the definition of HVCRE exposure to the new statutory definition of a HVCRE acquisition, development and construction loan. The preamble to the final rule would clarify certain terms in the revised HVCRE exposure definition, as well as the regulatory capital treatment of land development loans.