FDIC: FIL-48-2011: RISK-BASED CAPITAL STANDARDS Final Rule on Advanced Capital Adequacy Framework—Basel II; Establishment of a Risk-Based Capital Floor

Financial Institution Letter

Risk-Based Capital Standards

Final Rule on
Advanced Capital Adequacy Framework—Basel II;

Establishment of a Risk-Based Capital Floor
FIL-48-2011

June 17, 2011




Summary: The federal bank regulatory agencies have jointly issued the attached final rule to amend the advanced risk-based capital adequacy standards (advanced approaches rules) to be consistent with certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act), and amend the general risk-based capital rules to provide limited flexibility consistent with Section 171of the Act for recognizing the relative risk of certain assets generally not held by depository institutions.

Statement of Applicability to Institutions with Total Assets Less than $ 1 Billion: The only insured banks in this category to which this rule applies are those whose parent organizations use the advanced approaches rule and who have not been exempted from the requirement to also use the advanced approaches rule. Parent organizations that use the advanced approaches rule include mandatory banking organizations with total consolidated assets of $ 250 billion or more or on-balance sheet foreign exposure of $ 10 billion or more and those that have elected to use the advanced approaches rule.


Distribution:

FDIC-Supervised Banks (Commercial and Savings)

Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2011/fil11048.html

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