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]

Download as PDF 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]