Regulatory Alerts2020-11-20 | 2020-24900Regulatory Capital Rule: Changes to Applicability Thresholds for Regulatory Capital and Liquidity Requirements; Correction
The Federal Deposit Insurance Corporation, in coordination with the OCC and Federal Reserve Board, issued a correcting amendment to align the enhanced supplementary leverage ratio with its intended scope under the regulatory capital tailoring rule. This action revises 12 CFR § 324.403(b)(1)(ii) by substituting the covered bank holding company definition with a global systemically important bank holding company standard, requiring FDIC-supervised subsidiaries to maintain a 6.0 percent supplementary leverage ratio for well-capitalized prompt corrective action status. Effective immediately on November 20, 2020, the correction resolves prior omissions and eliminates compliance confusion for large insured depository institutions.
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