• Banking Agencies Pause Phase-In of Certain Basel III Capital Rules
  • January 11, 2018
  • On November 21, 2017, the OCC, FDIC and FRB adopted a final rule that will pause the phase-in of Basel III capital rules relating to mortgage servicing assets, certain deferred tax assets, investments in capital of unconsolidated financial institutions and minority interests, which were scheduled to take effect on January 1, 2018. The rule applies only to non-advanced approaches institutions (i.e., institutions with less than $250 billion in consolidated assets and foreign bank subsidiaries with less than $10 billion in assets) and is intended to maintain the status quo while the agencies finalize a broader rule-making process to simplify the treatment of these capital components. Until that process has been completed, these institutions will continue to apply the risk weight and deduction treatment that was applicable during 2017. Please contact Andrew Bulgin with questions about this topic.