Federal Reserve System March 11, 2014 – Federal Register Recent Federal Regulation Documents

Application of the Revised Capital Framework to the Capital Plan and Stress Test Rules
Document Number: 2014-05053
Type: Rule
Date: 2014-03-11
Agency: Federal Reserve System, Agencies and Commissions
The Board is adopting a final rule to require a bank holding company with total consolidated assets of $50 billion or more to estimate its tier 1 common ratio using the exiting definition for purposes of the Board's capital plan and stress test rules; defer until October 1, 2015, the use of the Board's advanced approaches rule for purposes of the Board's capital planning and stress testing rules; maintain the one-year transition period in the current stress test cycle during which bank holding companies and most state member banks with more than $10 billion but less than $50 billion in total consolidated assets are not required to incorporate the Board's Basel III-based revised regulatory capital framework that the Board approved on July 2, 2013 (revised capital framework); and make minor, conforming changes to the Board's capital plan rule and stress test rules. The final rule maintains all the changes to the Board's capital plan rule and stress test rules that were required under two interim final rules that the Board issued in September 2013, except that under the final rule, no banking organization is required to use the advanced approaches rule for purposes of the capital planning and stress testing rules until 2015.