OCC BULLETIN 2015-43
Subject: Volcker Rule
Date: November 6, 2015
To: Chief Executive Officers of All National Banks and Federal Savings Associations, Federal Branches and Agencies, Department and Division Heads All Examining Personnel, and Other Interested Parties
Description: Interagency Guidance on Capital Deduction Methodology
The Office of the Comptroller of the Currency (OCC), along with the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, is issuing the attached interagency guidance to banking organizations. For the OCC, the interagency guidance pertains to national banks and federal savings associations (collectively, banks). The interagency guidance addresses the deduction from regulatory capital for certain investments in covered funds pursuant to section 13 of the Bank Holding Company Act, also known as the Volcker rule. The guidance clarifies the interaction between the deduction for covered funds under the Volcker rule and the deductions required for certain investments in non-consolidated financial institutions under the regulatory capital rule at 12 CFR 3.
The Volcker rule deduction became effective on July 21, 2015, for investments in covered funds made after December 31, 2013. The September 30, 2015, call report is the first in which banking organizations must report Volcker rule deduction amounts.
For legacy covered fund investments (that is, investments made before December 31, 2013), the Volcker rule deduction does not become effective until July 21, 2017.
Please contact Margot Schwadron, Senior Risk Expert, or Christine Smith, Risk Analyst, Capital Policy Division, (202) 649-6370; or Carl Kaminski, Special Counsel, Legislative and Regulatory Activities Division, at (202) 649-5490.
Jennifer C. Kelly