Alert October 15, 2013

OCC and FRB Final Rule Revising Regulatory Capital Requirements Published in Federal Register

The OCC’s and FRB’s final rule (the “Final Rule”) that revises and replaces their existing risk-based and leverage capital requirements was published in the October 11, 2013 issue of the Federal Register.  The Final Rule is consistent with the parallel interim final regulatory capital rule published by the FDIC.  The revised regulatory capital rules of the FRB, OCC and the FDIC were discussed in the July, 9, 2013 Financial Services Alert.  The Final Rule reflects changes to the regulatory capital rules that are designed to implement provisions of the Dodd-Frank Act and of “the Basel capital framework, including Basel III and other elements.”  Subject to various transition provisions, the Final Rule is effective for banking organizations that use the advanced approaches on January 1, 2014 and for other banking organizations on January 1, 2015.