Regulatory Alerts2020-01-27 | 2019-28293Regulatory Capital Rule: Revisions to the Supplementary Leverage Ratio Excluding Certain Central Bank Deposits of Banking Organizations Predominantly Engaged in Custody, Safekeeping, and Asset Servicing
The OCC, Federal Reserve Board, and FDIC issued a final rule amending the supplementary leverage ratio to exclude certain central bank deposits for banking organizations predominantly engaged in custody, safekeeping, and asset servicing activities. The rule implements Section 402 of the Economic Growth, Regulatory Relief, and Consumer Protection Act by applying a 30:1 assets-under-custody-to-total-assets threshold to identify qualifying institutions. These organizations may exclude central bank deposits up to the amount linked to fiduciary or custodial accounts, with the regulation taking effect on April 1, 2020.
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