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Tuesday, August 22, 2017 - 16:00

US Regulators to Simplify Capital Rules for Community Banks

--Fed/FDIC/OCC to Alter Treatment of Mortgage Servicing Assets

WASHINGTON (MNI) - U.S. banking regulators said Tuesday they are preparing a proposal to simplify some capital rules that would reduce the regulatory burden for community banks in particular.

The proposal would simplify the capital rules' treatment of mortgage servicing assets and other items, the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency said in a joint statement.

Ahead of the release of the proposal, the regulators said they will extend certain temporary capital rules that currently apply to less complex banking organizations -- generally those with less than $250 billion in total consolidated assets and less than $10 billion in total foreign exposure.

The capital rules deal with mortgage servicing assets, certain deferred tax assets, investments in the capital instruments of unconsolidated financial institutions, and minority interests, the regulators said.

They were intended to govern a transition period that ends on Jan. 1 but will now be extended.

"The agencies anticipate proposing the simplified regulatory capital requirements in the coming months," they said.

--MNI Washington Bureau; +1 202-371-2121; email:

[TOPICS: M$U$$$,MGU$$$]

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