Delay of Effective Date; Regulatory Capital Rule: Implementation and Transition of the Current Expected Credit Losses Methodology for Allowances and Related Adjustments to the Regulatory Capital Rule and Conforming Amendments to Other Regulations, 11879 [2019-06011]
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11879
Rules and Regulations
Federal Register
Vol. 84, No. 61
Friday, March 29, 2019
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 1, 3, 5, 23, 24, 32, and 46
[Docket ID OCC–2018–0009]
RIN 1557–AE32
FEDERAL RESERVE SYSTEM
12 CFR Parts 208, 211, 215, 217, 223,
225, and 252
[Regulation Q; Docket No. R–1605]
RIN 7100–AF04
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 324, 325, 327, 347, and
390
RIN 3064–AE74
Delay of Effective Date; Regulatory
Capital Rule: Implementation and
Transition of the Current Expected
Credit Losses Methodology for
Allowances and Related Adjustments
to the Regulatory Capital Rule and
Conforming Amendments to Other
Regulations
Office of the Comptroller of the
Currency, Treasury; the Board of
Governors of the Federal Reserve
System; and the Federal Deposit
Insurance Corporation.
ACTION: Final rule, delay of effective
date.
AGENCY:
On February 14, 2019, the
Board of Governors of the Federal
Reserve System (Board), the Federal
Deposit Insurance Corporation (FDIC),
and the Office of the Comptroller of the
Currency (OCC) (collectively, the
agencies) published in the Federal
Register a final rule to address changes
to credit loss accounting under U.S.
generally accepted accounting
principles, including banking
jbell on DSK30RV082PROD with RULES
SUMMARY:
VerDate Sep<11>2014
16:06 Mar 28, 2019
Jkt 247001
organizations’ implementation of the
current expected credit losses
methodology (CECL) (final rule). The
final rule had an effective date of April
1, 2019, and provides that banking
organizations may early adopt the final
rule prior to that date. The agencies
have determined that adelay of the
effective date to July 1, 2019, is
appropriate.
DATES: The effective date of the final
rule published February 14, 2019 (84 FR
4222) is delayed until July 1, 2019.
Banking organizations may early adopt
this final rule prior to that date.
FOR FURTHER INFORMATION CONTACT:
OCC: Kevin Korzeniewski, Counsel,
Office of the Chief Counsel, (202) 649–
5490; or for persons who are hearing
impaired, TTY, (202) 649–5597.
Board: Constance M. Horsley, Deputy
Associate Director, (202) 452–5239; Juan
C. Climent, Manager, (202) 872–7526;
Andrew Willis, Senior Supervisory
Financial Analyst, (202) 912–4323; or
Noah Cuttler, Senior Financial Analyst,
(202) 912–4678, Division of Supervision
and Regulation; or Benjamin W.
McDonough, Assistant General Counsel,
(202) 452–2036; David W. Alexander,
Counsel, (202) 452–2877; or Asad
Kudiya, Counsel, (202) 475–6358, Legal
Division, Board of Governors of the
Federal Reserve System, 20th and C
Streets NW, Washington, DC 20551. For
the hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (202) 263–4869.
FDIC: Benedetto Bosco, Chief,
bbosco@fdic.gov; Richard Smith, Capital
Markets Policy Analyst, rismith@
fdic.gov; David Riley, Senior Policy
Analyst, dariley@fdic.gov; Capital
Markets Branch, Division of Risk
Management Supervision,
regulatorycapital@fdic.gov, (202) 898–
6888; Michael Phillips, Counsel,
mphillips@fdic.gov; or Catherine Wood,
Acting Supervisory Counsel, cawood@
fdic.gov; Supervision Branch, Legal
Division, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
On February 14, 2019, the agencies
published in the Federal Register a final
rule to amend the capital rule to address
changes to credit loss accounting under
U.S. generally accepted accounting
principles, including banking
organizations’ implementation of the
current expected credit losses
PO 00000
Frm 00001
Fmt 4700
Sfmt 9990
methodology (CECL).1 The final rule
provides banking organizations the
option to phase in over a three-year
period the day-one adverse effects on
regulatory capital that may result from
the adoption of the new accounting
standard. In addition, the final rule
revises the agencies’ regulatory capital
rule, stress testing rules, and regulatory
disclosure requirements to reflect CECL,
and makes conforming amendments to
other regulations that reference credit
loss allowances.
The final rule was published with an
effective date of April 1, 2019, and
provides that banking organizations may
early adopt the final rule prior to that
date. When the agencies submitted the
final rule for publication in December
2018, this effective date satisfied all
applicable statutory requirements.
However, due to the partial government
shutdown, the final rule was not
published until February 14, 2019. Due
to this delay in publication, the agencies
have determined that a delay of the
effective date of the final rule to July 1,
2019, is necessary to provide a sufficient
review period under the Congressional
Review Act 2 and to satisfy the
requirements of the Small Business
Regulatory Enforcement Fairness Act of
1996, Riegle Community Development
and Regulatory Improvement Act, and
Administrative Procedure Act.3
Notwithstanding this delay in effective
date, banking organizations subject to
the final rule may comply with it as of
January 1, 2019.
Dated: March 21, 2019.
Joseph M. Otting,
Comptroller of the Currency.
By order of the Board of Governors of the
Federal Reserve System, acting through the
Secretary of the Board under delegated
authority, March 15, 2019.
Ann E. Misback,
Secretary of the Board.
Dated at Washington, DC, on March 13,
2019.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Valerie Best,
Assistant Executive Secretary.
[FR Doc. 2019–06011 Filed 3–28–19; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P]
1 84
FR 4222 (February 14, 2019).
U.S.C. 801 et seq.
3 5 U.S.C. 601 et seq.; 12 U.S.C. 4801 et seq.; 5
U.S.C. 551 et seq.
25
E:\FR\FM\29MRR1.SGM
29MRR1
]]>Agencies
[Federal Register Volume 84, Number 61 (Friday, March 29, 2019)]
[Rules and Regulations]
[Page 11879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06011]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 84, No. 61 / Friday, March 29, 2019 / Rules
and Regulations
[[Page 11879]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Parts 1, 3, 5, 23, 24, 32, and 46
[Docket ID OCC-2018-0009]
RIN 1557-AE32
FEDERAL RESERVE SYSTEM
12 CFR Parts 208, 211, 215, 217, 223, 225, and 252
[Regulation Q; Docket No. R-1605]
RIN 7100-AF04
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 324, 325, 327, 347, and 390
RIN 3064-AE74
Delay of Effective Date; Regulatory Capital Rule: Implementation
and Transition of the Current Expected Credit Losses Methodology for
Allowances and Related Adjustments to the Regulatory Capital Rule and
Conforming Amendments to Other Regulations
AGENCY: Office of the Comptroller of the Currency, Treasury; the Board
of Governors of the Federal Reserve System; and the Federal Deposit
Insurance Corporation.
ACTION: Final rule, delay of effective date.
-----------------------------------------------------------------------
SUMMARY: On February 14, 2019, the Board of Governors of the Federal
Reserve System (Board), the Federal Deposit Insurance Corporation
(FDIC), and the Office of the Comptroller of the Currency (OCC)
(collectively, the agencies) published in the Federal Register a final
rule to address changes to credit loss accounting under U.S. generally
accepted accounting principles, including banking organizations'
implementation of the current expected credit losses methodology (CECL)
(final rule). The final rule had an effective date of April 1, 2019,
and provides that banking organizations may early adopt the final rule
prior to that date. The agencies have determined that adelay of the
effective date to July 1, 2019, is appropriate.
DATES: The effective date of the final rule published February 14, 2019
(84 FR 4222) is delayed until July 1, 2019. Banking organizations may
early adopt this final rule prior to that date.
FOR FURTHER INFORMATION CONTACT:
OCC: Kevin Korzeniewski, Counsel, Office of the Chief Counsel,
(202) 649-5490; or for persons who are hearing impaired, TTY, (202)
649-5597.
Board: Constance M. Horsley, Deputy Associate Director, (202) 452-
5239; Juan C. Climent, Manager, (202) 872-7526; Andrew Willis, Senior
Supervisory Financial Analyst, (202) 912-4323; or Noah Cuttler, Senior
Financial Analyst, (202) 912-4678, Division of Supervision and
Regulation; or Benjamin W. McDonough, Assistant General Counsel, (202)
452-2036; David W. Alexander, Counsel, (202) 452-2877; or Asad Kudiya,
Counsel, (202) 475-6358, Legal Division, Board of Governors of the
Federal Reserve System, 20th and C Streets NW, Washington, DC 20551.
For the hearing impaired only, Telecommunication Device for the Deaf
(TDD), (202) 263-4869.
FDIC: Benedetto Bosco, Chief, [email protected]; Richard Smith,
Capital Markets Policy Analyst, [email protected]; David Riley, Senior
Policy Analyst, [email protected]; Capital Markets Branch, Division of
Risk Management Supervision, [email protected], (202) 898-
6888; Michael Phillips, Counsel, [email protected]; or Catherine Wood,
Acting Supervisory Counsel, [email protected]; Supervision Branch, Legal
Division, Federal Deposit Insurance Corporation, 550 17th Street NW,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
On February 14, 2019, the agencies published in the Federal
Register a final rule to amend the capital rule to address changes to
credit loss accounting under U.S. generally accepted accounting
principles, including banking organizations' implementation of the
current expected credit losses methodology (CECL).\1\ The final rule
provides banking organizations the option to phase in over a three-year
period the day-one adverse effects on regulatory capital that may
result from the adoption of the new accounting standard. In addition,
the final rule revises the agencies' regulatory capital rule, stress
testing rules, and regulatory disclosure requirements to reflect CECL,
and makes conforming amendments to other regulations that reference
credit loss allowances.
---------------------------------------------------------------------------
\1\ 84 FR 4222 (February 14, 2019).
---------------------------------------------------------------------------
The final rule was published with an effective date of April 1,
2019, and provides that banking organizations may early adopt the final
rule prior to that date. When the agencies submitted the final rule for
publication in December 2018, this effective date satisfied all
applicable statutory requirements. However, due to the partial
government shutdown, the final rule was not published until February
14, 2019. Due to this delay in publication, the agencies have
determined that a delay of the effective date of the final rule to July
1, 2019, is necessary to provide a sufficient review period under the
Congressional Review Act \2\ and to satisfy the requirements of the
Small Business Regulatory Enforcement Fairness Act of 1996, Riegle
Community Development and Regulatory Improvement Act, and
Administrative Procedure Act.\3\ Notwithstanding this delay in
effective date, banking organizations subject to the final rule may
comply with it as of January 1, 2019.
---------------------------------------------------------------------------
\2\ 5 U.S.C. 801 et seq.
\3\ 5 U.S.C. 601 et seq.; 12 U.S.C. 4801 et seq.; 5 U.S.C. 551
et seq.
Dated: March 21, 2019.
Joseph M. Otting,
Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, March 15, 2019.
Ann E. Misback,
Secretary of the Board.
Dated at Washington, DC, on March 13, 2019.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Valerie Best,
Assistant Executive Secretary.
[FR Doc. 2019-06011 Filed 3-28-19; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P]
