Regulatory Alerts2019-04-30 | 2019-08448Regulatory Capital Rule: Revisions to the Supplementary Leverage Ratio To Exclude Certain Central Bank Deposits of Banking Organizations Predominantly Engaged in Custody, Safekeeping and Asset Servicing Activities
The Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, and Federal Deposit Insurance Corporation propose to amend the supplementary leverage ratio to exclude certain central bank deposits held by custodial banks. This change implements Section 402 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which directs agencies to relieve capital burdens for banking organizations predominantly engaged in custody, safekeeping, and asset servicing activities. The proposal defines qualifying institutions based on an assets-under-custody-to-total-assets ratio and limits the exclusion to deposits linked to fiduciary or custody accounts.
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