United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2019_register executive 2019-11-13 article Part III Rules and Regulations D09002ee1c7b988ef D09002ee1c7b989f7 United States Department of Treasury originator org United States Government Agency or Subagency United States Office of the Comptroller of the Currency originator org United States Government Agency or Subagency United States Federal Reserve System originator org United States Government Agency or Subagency United States Federal Deposit Insurance Corporation originator org United States Government Agency or Subagency The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) are adopting a final rule that 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 (final rule). Under the 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 (equal to tier 1 capital divided by average total consolidated assets) of greater than 9 percent, will be eligible to opt into the community bank leverage ratio framework (qualifying community banking organizations). Qualifying community banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than 9 percent will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the agencies' capital rules (generally applicable rule) and, if applicable, will be considered to have met the well-capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. The final rule includes a two-quarter grace period during which a qualifying community banking organization that temporarily fails to meet any of the qualifying criteria, including the greater than 9 percent leverage ratio requirement, generally would still be deemed well-capitalized so long as the banking organization maintains a leverage ratio greater than 8 percent. At the end of the grace period, the banking organization must meet all qualifying criteria to remain in the community bank leverage ratio framework or otherwise must comply with and report under the generally applicable rule. Similarly, a banking organization that fails to maintain a leverage ratio greater than 8 percent would not be permitted to use the grace period and must comply with the capital rule's generally applicable requirements and file the appropriate regulatory reports. 84 FR 61776 https://www.govinfo.gov/app/details/FR-2019-11-13/2019-23472 2019-23472 fr13no19-17 RIN 1557-AE59 RIN 3064-AE91 P Docket ID OCC-2018-0040 Regulation Q Docket No. R-1638 https://www.govinfo.gov/app/details/FR-2019-11-13/2019-23472 https://www.govinfo.gov/content/pkg/FR-2019-11-13/html/2019-23472.htm https://www.govinfo.gov/content/pkg/FR-2019-11-13/pdf/2019-23472.pdf Banks Banking National Banks Reporting and Recordkeeping Requirements Securities Consumer Protection Manufactured Homes Savings Associations Exports Foreign Banking Holding Companies Penalties Concentration Limit Confidential Business Information Crime Currency Community Development Credit Investments Low and Moderate Income Housing Rural Areas Small Businesses Administrative Practice and Procedure Federal Reserve System Mortgages Savings and Loan Holding Companies (Regulation Ll) Bank Deposit Insurance State Non-Member Banks Capital Adequacy Authority Delegations (Government Agencies) U S Investments Abroad Interbank Liability Lending Limits 29 p. 61776 61804 84 FR 61776 Title 12 Part 160 12 CFR Part 160 Title 12 Part 192 12 CFR Part 192 Title 12 Part 1 12 CFR Part 1 Title 12 Part 206 12 CFR Part 206 Title 12 Part 208 12 CFR Part 208 Title 12 Part 211 12 CFR Part 211 Title 12 Part 215 12 CFR Part 215 Title 12 Part 217 12 CFR Part 217 Title 12 Part 223 12 CFR Part 223 Title 12 Part 225 12 CFR Part 225 Title 12 Part 23 12 CFR Part 23 Title 12 Part 238 12 CFR Part 238 Title 12 Part 24 12 CFR Part 24 Title 12 Part 251 12 CFR Part 251 Title 12 Part 303 12 CFR Part 303 Title 12 Part 32 12 CFR Part 32 Title 12 Part 324 12 CFR Part 324 Title 12 Part 337 12 CFR Part 337 Title 12 Part 34 12 CFR Part 34 Title 12 Part 347 12 CFR Part 347 Title 12 Part 362 12 CFR Part 362 Title 12 Part 365 12 CFR Part 365 Title 12 Part 390 12 CFR Part 390 Title 12 Part 3 12 CFR Part 3 Title 12 Part 5 12 CFR Part 5 Title 12 Part 6 12 CFR Part 6 RIN 1557-AE59 RIN 3064-AE91 Regulatory Capital Rule: Capital Simplification for Qualifying Community Banking Organizations; Federal Register Vol. 84, Issue RULE 2019-23472 III DEPARTMENT OF TREASURY Office of the Comptroller of the Currency FEDERAL RESERVE SYSTEM FEDERAL DEPOSIT INSURANCE CORPORATION 2020-01-01 Docket ID OCC-2018-0040 Regulation Q Docket No. R-1638 P 2019-23472 Final rule.

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) are adopting a final rule that 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 (final rule). Under the 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 (equal to tier 1 capital divided by average total consolidated assets) of greater than 9 percent, will be eligible to opt into the community bank leverage ratio framework (qualifying community banking organizations). Qualifying community banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than 9 percent will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the agencies' capital rules (generally applicable rule) and, if applicable, will be considered to have met the well-capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. The final rule includes a two-quarter grace period during which a qualifying community banking organization that temporarily fails to meet any of the qualifying criteria, including the greater than 9 percent leverage ratio requirement, generally would still be deemed well-capitalized so long as the banking organization maintains a leverage ratio greater than 8 percent. At the end of the grace period, the banking organization must meet all qualifying criteria to remain in the community bank leverage ratio framework or otherwise must comply with and report under the generally applicable rule. Similarly, a banking organization that fails to maintain a leverage ratio greater than 8 percent would not be permitted to use the grace period and must comply with the capital rule's generally applicable requirements and file the appropriate regulatory reports.

The final rule is effective on January 1, 2020. OCC: David Elkes, Risk Expert, Benjamin Pegg, Risk Expert, or Jung Sup Kim, Risk Specialist, Capital and Regulatory Policy (202) 649-6370; or Carl Kaminski, Special Counsel, or Daniel Perez, Senior Attorney, or Rima Kundnani, Senior Attorney, Chief Counsel's Office, (202) 649-5490, for persons who are deaf or hearing impaired, TTY, (202) 649-5597, Office of the Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219. Banks Banking National Banks Reporting and Recordkeeping Requirements Securities Consumer Protection Manufactured Homes Savings Associations Exports Foreign Banking Holding Companies Penalties Concentration Limit Confidential Business Information Crime Currency Community Development Credit Investments Low and Moderate Income Housing Rural Areas Small Businesses Administrative Practice and Procedure Federal Reserve System Mortgages Savings and Loan Holding Companies (Regulation Ll) Bank Deposit Insurance State Non-Member Banks Capital Adequacy Authority Delegations (Government Agencies) U S Investments Abroad Interbank Liability Lending Limits Regulatory Capital Rule: Capital Simplification for Qualifying Community Banking Organizations, bbosco@fdic.gov dgorechan@fdic.gov kmccormick@fdic.gov mphillips@fdic.gov regulatorycapital@fdic.gov slorek@fdic.gov https://www.sba.gov/sites/default/files/advocacy/How-to-Comply-with-the-RFA-WEB.pdf https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf Vol. 84, no. 219 Office of the Federal Register, National Archives and Records Administration 2019-11-13 continuing daily deposited born digital 310 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2019-11-13 P0b002ee1a38c1f4a 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr13no19 https://www.govinfo.gov/app/details/FR-2019-11-13 https://www.govinfo.gov/content/pkg/FR-2019-11-13/pdf/FR-2019-11-13.pdf https://www.govinfo.gov/content/pkg/FR-2019-11-13/xml/FR-2019-11-13.xml fdlp 61517 61817 DGPO 2019-11-13 2024-05-30 FR-2019-11-13 machine generated eng FR FR-2019-11-13 84 219