Regulatory Capital Rules: Regulatory Capital, Revisions to the Supplementary Leverage Ratio

Regulatory Capital Rules: Regulatory Capital, Revisions to the Supplementary Leverage Ratio The FDIC, jointly with the OCC, and the Federal Reserve, issued this final rule that amends the regulatory capital rules adopted by the agencies in July 2013 (2013 revised capital rules). Specifically, the final rule implements enhanced supplementary leverage ratio standards for large, interconnected U.S. banking organizations that have at least $250 billion in total consolidated assets or total on-balance sheet foreign exposures of $10 billion or more. In doing so, the final rule supports some of the main objectives of the 2013 revised capital rules, that is, to increase the quantity of regulatory capital and improve the stability and resilience of the U.S. banking system. The final rule revises total leverage exposure as defined in the 2013 revised capital rule to include the effective notional principal amount of credit derivatives and other similar instruments through which a banking organization provides credit protection (sold credit protection); modifies the calculation of total leverage exposure for derivative and repo-style transactions; and revises the credit conversion factors applied to certain off-balance sheet exposures. The final rule also changes the frequency with which certain components of the supplementary leverage ratio are calculated and establishes the public disclosure requirements of certain items associated with the supplementary leverage ratio.

The latest form for Regulatory Capital Rules: Regulatory Capital, Revisions to the Supplementary Leverage Ratio expires 2021-09-30 and can be found here.