Regulatory Alerts2014-09-28
Added
Limitations On Issuing Housing Loans
Banking corporations must increase their Common Equity Tier 1 capital target by a rate reflecting 1 percent of outstanding housing loans, with this requirement phased in via fixed quarterly increases from January 1, 2015, to January 1, 2017. Additionally, as of January 1, 2015, banking corporations are permitted to reduce the risk weight for leveraged variable rate loans from 100 percent to 75 percent. These amendments apply to Proper Conduct of Banking Business Directive 329.