Regulatory Alerts2020-06-01 | 2020-10962Regulatory Capital Rule: Temporary Exclusion of U.S. Treasury Securities and Deposits at Federal Reserve Banks From the Supplementary Leverage Ratio for Depository Institutions
The OCC, Federal Reserve Board, and FDIC jointly issued an interim final rule temporarily excluding U.S. Treasury securities and deposits at Federal Reserve Banks from the supplementary leverage ratio denominator for qualifying depository institutions. Institutions subject to Category II or III capital standards may elect this treatment through March 31, 2021, provided they obtain prior regulatory approval before making certain capital distributions. This adjustment mitigates sudden capital increases driven by pandemic-related balance sheet expansion, enabling depository institutions to maintain their role as critical financial intermediaries during ongoing market strains.
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