[Federal Register Volume 85, Number 77 (Tuesday, April 21, 2020)]
[Rules and Regulations]
[Pages 22009-22010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08361]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 324

RIN 3064-AF49


Regulatory Capital Rule: Paycheck Protection Program Lending 
Facility and Paycheck Protection Program Loans; Correction

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Final rule; correcting amendment.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is correcting 
its rule text in conjunction with the interagency interim final rule

[[Page 22010]]

that appeared in the Federal Register on April 13, 2020, titled 
``Regulatory Capital Rule: Paycheck Protection Program Lending Facility 
and Paycheck Protection Program Loans.'' This correction is necessary 
to conform the FDIC's rule text to the regulations of the other federal 
banking agencies that issued that interagency interim final rule.

DATES: Effective April 21, 2020.

FOR FURTHER INFORMATION CONTACT: FDIC: 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 April 13, 2020, 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: Paycheck Protection 
Program Lending Facility and Paycheck Protection Program Loans'' (PPPL 
final rule).\1\ In the wake of economic disruptions caused by COVID-19, 
the Board of Governors of the Federal Reserve System authorized each of 
the Federal Reserve Banks to participate in the Paycheck Protection 
Program Lending Facility (PPPL Facility), pursuant to section 13(3) of 
the Federal Reserve Act, to provide liquidity to small business lenders 
and the broader credit markets, to help stabilize the financial system, 
and to provide economic relief to small businesses nationwide. The PPPL 
final rule allows banking organizations to neutralize the regulatory 
capital effects of participating in the facility.
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    \1\ 85 FR 20387 (April 13, 2020).
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    The PPPL final rule permits banking organizations to exclude 
exposures pledged as collateral to the PPPL Facility from a banking 
organization's total leverage exposure, average total consolidated 
assets, advanced approaches-total risk-weighted assets, and 
standardized total risk-weighted assets, as applicable. The PPPL final 
rule also amends section 32 of the FDIC's regulatory capital rule to 
clarify that PPP covered loans originated by a banking organization 
under the Paycheck Protection Program will receive a zero percent risk 
weight.\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 add a new Sec.  324.131(e)(3)(viii) 
to the FDIC's regulatory capital rule in conformance with the 
regulatory capital rules of the other federal banking agencies.
    For the reasons stated in the preamble, the FDIC corrects 12 CFR 
part 324 as follows:

PART 324--CAPITAL ADEQUACY OF FDIC-SUPERVISED INSTITUTIONS

0
1. The authority citation for part 324 continues to read as follows:

    Authority: 12 U.S.C. 1815(a), 1815(b), 1816, 1818(a), 1818(b), 
1818(c), 1818(t), 1819(Tenth), 1828(c), 1828(d), 1828(i), 1828(n), 
1828(o), 1831o, 1835, 3907, 3909, 4808; 5371; 5412; Pub. L. 102-233, 
105 Stat. 1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. L. 102-242, 
105 Stat. 2236, 2355, as amended by Pub. L. 103-325, 108 Stat. 2160, 
2233 (12 U.S.C. 1828 note); Pub. L. 102-242, 105 Stat. 2236, 2386, 
as amended by Pub. L. 102-550, 106 Stat. 3672, 4089 (12 U.S.C. 1828 
note); Pub. L. 111-203, 124 Stat. 1376, 1887 (15 U.S.C. 78o-7 note); 
Pub. L. 115-174; Pub. L. 116-136, 134 Stat. 281.


0
2. Amend Sec.  324.131 by adding paragraph (e)(3)(viii) to read as 
follows:


Sec.  324.131   Mechanics for calculating total wholesale and retail 
risk-weighted assets.

* * * * *
    (e) * * *
    (3) * * *
    (viii) The risk-weighted asset amount for a Paycheck Protection 
Program covered loan as defined in section 7(a)(36) of the Small 
Business Act (15 U.S.C. 636(a)(36)) equals zero.
* * * * *

Federal Deposit Insurance Corporation.

    Dated in Washington, DC, on April 15, 2020.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2020-08361 Filed 4-20-20; 8:45 am]
BILLING CODE 6714-01-P