[Federal Register Volume 85, Number 55 (Friday, March 20, 2020)]
[Rules and Regulations]
[Pages 15916-15917]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05441]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 365

RIN 3064-AE91


Regulatory Capital Rule: Capital Simplification for Qualifying 
Community Banking Organizations; Correction

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Correcting amendment.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is correcting 
an interagency final rule that appeared in the Federal Register on 
November 13, 2019, regarding the final rule titled ``Regulatory Capital 
Rule: Capital Simplification for Qualifying Community Banking 
Organizations.'' These corrections are necessary to conform a footnote 
citation in the FDIC's amendment to its codified appendix for the 
Interagency Guidelines for Real Estate Lending Policies with the 
footnote citation in the regulations of the other federal banking 
agencies that issued that final rule.

DATES: Effective March 20, 2020.

FOR FURTHER INFORMATION CONTACT: FDIC: Beverlea S. Gardner, Senior 
Examination Specialist, [email protected], 202-898-3640; Policy and 
Program Development Section, Division of Risk Management Supervision; 
or Michael Phillips, Counsel, [email protected]; Catherine Wood, 
Counsel, [email protected]; Francis Kuo, Counsel, [email protected], 
Supervision Branch, Legal Division, Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: On November 13, 2019, the Office of the 
Comptroller of the Currency (OCC), Board of Governors of the Federal 
Reserve System (Board), and the FDIC (collectively, the agencies) 
published a final rule ``Regulatory Capital Rule: Capital 
Simplification for Qualifying Community Banking Organizations'' (CBLR 
final rule).\1\ The CBLR final rule provides for a simple measure of 
capital adequacy for certain community banking organizations, 
consistent with section 201 of the Economic Growth, Regulatory Relief, 
and Consumer Protection Act.
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    \1\ 84 FR 61776 (Nov. 13, 2019).
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    Under the CBLR final rule, depository institutions and depository 
institution holding companies that have less than $10 billion in total 
consolidated assets and meet other qualifying criteria, including a 
leverage ratio of greater than 9 percent, will be eligible to opt into 
the community bank leverage ratio framework (CBLR banks). In addition, 
under the CBLR final rule, the community bank leverage ratio framework 
incorporates tier I capital in the numerator of that leverage ratio. 
The CBLR final rule also amends standards referencing total capital so 
that an electing CBLR bank uses tier I capital in the numerator of that 
leverage ratio instead of total capital, which includes tier 2 
capital.\2\
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    \2\ See the definition of ``total capital'' in the FDIC's 
capital rules in 12 CFR 324.2.
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    This correcting amendment will conform appendix A to subpart A of

[[Page 15917]]

part 365 of the FDIC's Real Estate Lending Standards regulation to that 
of the other Federal banking agencies.

List of Subjects in 12 CFR Part 365

    Banks, Banking, Mortgages.

    For the reasons stated in the preamble, the FDIC corrects 12 CFR 
part 365 by making the following correcting amendment:

PART 365--REAL ESTATE LENDING STANDARDS

0
1. The authority citation for part 365 is revised to read as follows:

    Authority:  12 U.S.C. 1828(o) and 5101 et seq.


0
2. Amend appendix A to subpart A of part 365 by revising footnote 4 to 
read as follows:

Appendix A to Subpart A of Part 365--Interagency Guidelines for Real 
Estate Lending Policies

* * * * *
    \4\ For state non-member banks and state savings associations, 
``total capital'' refers to that term described in Sec.  324.2 of 
this chapter.
* * * * *

Federal Deposit Insurance Corporation.

    Dated in Washington, DC, on March 12, 2020.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2020-05441 Filed 3-19-20; 8:45 am]
 BILLING CODE 6714-01-P