Agencies Clarify Regulatory Capital Rules, New Rule for ‘Advanced Approaches’ Banks

In a rule applying to large and internationally active banks, federal banking agencies finalized changes to regulatory capital rules that were adopted two years ago.

The new rule approved by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency is meant for those big banks that determine their regulatory capital ratios under the advanced approaches framework—generally those companies with at least $250 billion in total consolidated assets or at least $10 billion in total on-balance sheet foreign exposures.

In 2013, the agencies approved rules establishing an integrated regulatory capital framework that addresses ...