This supporting statement relates to
an interim final rule which revises the FDIC’s regulatory capital
rule found at 12 C.F.R. part 324. State nonmember banks and state
savings associations, when calculating on-balance sheet assets as
of each day of a reporting quarter for purposes of determining the
state nonmember bank’s or state savings association’s total
leverage exposure, may exclude the balance sheet carrying value of
U.S. Treasury securities and funds on deposit at a Federal Reserve
Bank. Before applying this relief, state nonmember banks and state
savings associations must first notify the FDIC. During the
calendar quarter beginning on July 1, 2020, and until March 31,
2021, no state nonmember bank or state savings association that has
opted in to this relief may make a distribution, or create an
obligation to make such a distribution, without prior FDIC
approval.
In light of recent
disruptions in economic conditions caused by the coronavirus
disease 2019 and strains in U.S. financial markets, the Office of
the Comptroller of the Currency (OCC), the Board of Governors of
the Federal Reserve System (FRB), and the Federal Deposit Insurance
Corporation (FDIC) (collectively, the agencies) issued an interim
final rule that temporarily revises the supplementary leverage
ratio calculation for depository institutions. Under the interim
final rule, any depository institution subsidiary of a U.S. global
systemically important bank holding company or any depository
institution subject to Category II or Category III capital
standards may elect to exclude temporarily U.S. Treasury securities
and deposits at Federal Reserve Banks from the supplementary
leverage ratio denominator. Additionally, under this interim final
rule, any depository institution making this election must request
approval from its primary Federal banking regulator prior to making
certain capital distributions so long as the exclusion is in
effect. The interim final rule is effective as June 1, 2020 and
will remain in effect through March 31, 2021. The agencies adopted
this interim final rule to allow depository institutions that elect
to opt into this treatment additional flexibility to act as
financial intermediaries during this period of financial
disruption.
US Code:
12
USC 1831o Name of Law: Federal Deposit Insurance Act
PL: Pub.L. 111 - 203 1435-38 Name of Law:
Dodd-Frank Wall Street Reform and Consumer Protection Act
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
SPST-0153 Regulatory Capital Rules (2020) - ESLR IFR.pdf
(CCR) -- Section _.132(b)(2)(iii)(A): One-time