^®: CRE Regulatory Action of the Week

Final Rule Revises Risk-Based and Leverage Capital Requirements
The Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System have published Federal Register notice of a final rule which revises their risk-based and leverage capital requirements for banking organizations. Among other revisions, the final rule consolidates three separate notices of proposed rulemaking that the OCC, Board, and FDIC published in the Federal Register on August 30, 2012, with selected changes. The final rule implements a revised definition of regulatory capital, a new common equity tier 1 minimum capital requirement, a higher minimum tier 1 capital requirement, and, for banking organizations subject to the advanced approaches risk-based capital rules, a supplementary leverage ratio that incorporates a broader set of exposures in the denominator. The final rule incorporates these new requirements into the agencies' prompt corrective action framework.