80 FR 35888 - Regulatory Capital Rules: Regulatory Capital, Implementation of Tier 1/Tier 2 Framework

FARM CREDIT ADMINISTRATION

Federal Register Volume 80, Issue 120 (June 23, 2015)

The Farm Credit Administration (FCA or we) is reopening the comment period on the proposed rule that would revise our regulatory capital requirements for Farm Credit System (System) institutions to include tier 1 and tier 2 risk-based capital ratio requirements, a tier 1 leverage requirement, a capital conservation buffer, revised risk weightings, and additional public disclosure requirements.

[Federal Register Volume 80, Number 120 (Tuesday, June 23, 2015)]
[Proposed Rules]
[Pages 35888-35889]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-15348]


=======================================================================
-----------------------------------------------------------------------

FARM CREDIT ADMINISTRATION

12 CFR Parts 607, 614, 615, 620 and 628

RIN 3052-AC81


Regulatory Capital Rules: Regulatory Capital, Implementation of 
Tier 1/Tier 2 Framework

AGENCY: Farm Credit Administration.

ACTION: Proposed rule; reopening of comment period.

-----------------------------------------------------------------------

SUMMARY: The Farm Credit Administration (FCA or we) is reopening the 
comment period on the proposed rule that would revise our regulatory 
capital requirements for Farm Credit System (System) institutions to 
include tier 1 and tier 2 risk-based capital ratio requirements, a tier 
1 leverage requirement, a capital conservation buffer, revised risk 
weightings, and additional public disclosure requirements.

DATES: You may send us comments from June 26, 2015, through July 10, 
2015.

ADDRESSES: For accuracy and efficiency reasons, please submit comments 
by email or through the FCA's Web site. We do not accept comments 
submitted by facsimile (fax), as faxes are difficult for us to process 
in compliance with section 508 of the Rehabilitation Act. Please do not 
submit your comment multiple times via different methods. You may 
submit comments by any of the following methods:
     Email: Send us an email at [email protected].
     FCA Web site: http://www.fca.gov. Select ``Public 
Commenters,'' then ``Public Comments,'' and follow the directions for 
``Submitting a Comment.''
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Barry F. Mardock, Deputy Director, Office of 
Regulatory Policy, Farm Credit Administration, 1501 Farm Credit Drive, 
McLean, VA 22102-5090.
    You may review copies of all comments we receive at our office in 
McLean, Virginia, or from our Web site at http://www.fca.gov. Once you 
are in the Web site, select ``Public Commenters,'' then ``Public 
Comments,'' and follow the directions for ``Reading Submitted Public 
Comments.'' We will show your comments as submitted, but for technical 
reasons we may omit items such as logos and special characters. 
Identifying information you provide, such as phone numbers and 
addresses, will be publicly available. However, we will attempt to 
remove email addresses to help reduce Internet spam.

FOR FURTHER INFORMATION CONTACT:
J.C. Floyd, Associate Director, Finance and Capital Markets Team, 
Office of Regulatory Policy, Farm Credit Administration, McLean, VA 
22102-5090, (720) 213-0924, TTY (703) 883-4056;

or

Rebecca S. Orlich, Senior Counsel, or Jennifer A. Cohn, Senior Counsel, 
Office of General Counsel, Farm Credit Administration, McLean, VA 
22102-5090, (703) 883-4020, TTY (703) 883-4056.

SUPPLEMENTARY INFORMATION: On September 4, 2014, FCA published a 
proposed rule to revise our regulatory capital requirements for Farm 
Credit System (System) institutions to establish tier 1/tier 2 risk-
based capital ratio requirements (replacing core surplus and total 
surplus ratios), a tier 1

[[Page 35889]]

leverage ratio requirement (replacing a net collateral requirement for 
System banks), a capital conservation buffer, revised risk weightings, 
and additional publish disclosure requirements.\1\ The revisions to the 
risk weightings would include replacing references to credit ratings 
with alternative risk measurements, as required by the Dodd-Frank Wall 
Street Reform and Consumer Protection Act. The comment period on the 
proposed rule, after an extension, closed February 16, 2015.\2\
---------------------------------------------------------------------------

    \1\ 79 FR 52814 (September 4, 2014).
    \2\ The original comment period of 120 days was extended an 
additional 45 days. See 79 FR 76927 (December 23, 2014).
---------------------------------------------------------------------------

    FCA received a letter dated March 30, 2015, from the Farm Credit 
Council, a trade association representing System institutions, 
requesting FCA to reopen the comment period. The Farm Credit Council 
stated that the reason for its request was to give System institutions 
the opportunity to meet with FCA Board members that joined the FCA 
Board on March 13 and 17, 2015, in order to discuss the proposed rule.
    In response to this request, we are reopening the comment period on 
June 26 through July 10, 2015. Because the proposed rule contains 
significant revisions to the regulatory capital framework in existing 
FCA regulations, we believe it is important to give interested parties 
additional time to provide comments to the FCA Board. Reopening the 
comment period will ensure transparency in the process.

    Dated: June 17, 2015.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2015-15348 Filed 6-22-15; 8:45 am]
 BILLING CODE 6705-01-P