Regulatory Alerts2020-03-20 | 2020-05441Regulatory Capital Rule: Capital Simplification for Qualifying Community Banking Organizations; Correction
The Federal Deposit Insurance Corporation issued a correcting amendment to align the footnote definition of “total capital” in its Real Estate Lending Standards regulation with those of other federal banking agencies. This adjustment ensures consistency with the November 2019 Capital Simplification for Qualifying Community Banking Organizations final rule, which allows institutions under $10 billion in assets to use a simplified leverage ratio framework based on tier I capital. By revising footnote 4 in Appendix A to Part 365, the FDIC eliminates citation discrepancies that could otherwise create compliance confusion for community banks electing into the simplified capital framework.
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