83 FR 17477 - Regulation Q; Regulatory Capital Rules; Correction

FEDERAL RESERVE SYSTEM

Federal Register Volume 83, Issue 77 (April 20, 2018)

The Board of Governors of the Federal Reserve System (Board) published a final rule in the Federal Register on October 11, 2013, regarding Regulatory Capital Rules. The Board also published a final rule in the Federal Register on May 1, 2014, to amend the regulatory capital rules to include enhanced supplementary leverage ratio standards. This publication resolves an unintended deletion from the regulatory capital rules that was made in connection with the enhanced supplementary leverage ratio standards.

[Federal Register Volume 83, Number 77 (Friday, April 20, 2018)]
[Rules and Regulations]
[Pages 17477-17478]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08248]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 83, No. 77 / Friday, April 20, 2018 / Rules 
and Regulations

[[Page 17477]]



FEDERAL RESERVE SYSTEM

12 CFR Part 217

[Docket Nos. R-1606; RIN 7100-AF 05]


Regulation Q; Regulatory Capital Rules; Correction

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; correcting amendments.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
published a final rule in the Federal Register on October 11, 2013, 
regarding Regulatory Capital Rules. The Board also published a final 
rule in the Federal Register on May 1, 2014, to amend the regulatory 
capital rules to include enhanced supplementary leverage ratio 
standards. This publication resolves an unintended deletion from the 
regulatory capital rules that was made in connection with the enhanced 
supplementary leverage ratio standards.

DATES: This final rule is effective April 20, 2018.

FOR FURTHER INFORMATION CONTACT: Benjamin McDonough, Assistant General 
Counsel, (202) 452-2036, David Alexander, Counsel, (202) 452-2877, or 
Mark Buresh, Senior Attorney, (202) 452-5270, Legal Division, Board of 
Governors of the Federal Reserve System, 20th Street and Constitution 
Avenue NW, Washington, DC 20551. For the hearing impaired, 
Telecommunications Device for the Deaf (TDD) users may contact (202) 
263-4869.

SUPPLEMENTARY INFORMATION: The Board is correcting the unintended 
deletion of certain provisions of the regulatory capital rule 
originally published in the Federal Register on October 11, 2013.\1\ A 
subsequent rule of the Board that established enhanced supplementary 
leverage ratio standards was published in the Federal Register on May 
1, 2014.\2\ In order to implement the enhanced supplementary leverage 
ratio standards, the May 1, 2014, final rule included amendatory text 
for 12 CFR 217.11(a)(4)(i) through (iii) and instructions to the 
Federal Register to amend 12 CFR 217.11(a)(4) on the effective date of 
the rule, January 1, 2018. When the amendments to 12 CFR 217.11(a)(4) 
were implemented on January 1, 2018, paragraphs (a)(4)(i) through (iii) 
of 12 CFR 217.11 were amended as intended; however, paragraphs 
(a)(4)(iv) and (v) and Table 1 to 12 CFR 217.11 were removed from 12 
CFR part 217. The removal of paragraph (a)(4)(iv) and (v) and Table 1 
to 12 CFR 217.11 was contrary to the Board's intent as stated in the 
May 1, 2014, final rule.\3\ This document amends 12 CFR 217.11 to 
reinstate paragraphs (a)(4)(iv) and (v) and Table 1 as in effect 
immediately prior to January 1, 2018.
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    \1\ 78 FR 62018.
    \2\ 79 FR 24528.
    \3\ See e.g., 78 FR 51101 at 51105-51107 (August 20, 2013).
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List of Subjects in 12 CFR Part 217

    Administrative practice and procedure, Banks, Banking, Holding 
companies, Reporting and recordkeeping requirements, Securities.

    For the reasons set forth in the preamble, chapter II of title 12 
of the Code of Federal Regulations is amended by making the following 
correcting amendments:

PART 217--CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS AND 
LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS (REGULATION Q)

0
1. The authority citation for part 217 continues to read as follows:

    Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 
1818, 1828, 1831n, 1831o, 1831p-l, 1831w, 1835, 1844(b), 1851, 3904, 
3906-3909, 4808, 5365, 5368, 5371.

0
2. In Sec.  217.11, add paragraph (a)(4)(iv), Table 1 to Sec.  217.11, 
and paragraph (a)(4) (v) to read as follows:


Sec.  217.11  Capital conservation buffer, countercyclical capital 
buffer amount, and GSIB surcharge.

* * * * *
    (a) * * *
    (4) * * *
    (iv) Prior approval. Notwithstanding the limitations in paragraphs 
(a)(4)(i) through (iii) of this section, the Board may permit a Board-
regulated institution to make a distribution or discretionary bonus 
payment upon a request of the Board-regulated institution, if the Board 
determines that the distribution or discretionary bonus payment would 
not be contrary to the purposes of this section, or to the safety and 
soundness of the Board-regulated institution. In making such a 
determination, the Board will consider the nature and extent of the 
request and the particular circumstances giving rise to the request.

                         Table 1 to Sec.   217.11--Calculation of Maximum Payout Amount
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        Capital conservation buffer          Maximum payout ratio  (as a percentage of eligible retained income)
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Greater than 2.5 percent plus 100 percent    No payout ratio limitation applies.
 of the Board-regulated institution's
 applicable countercyclical capital buffer
 amount and 100 percent of the Board-
 regulated institution's applicable GSIB
 surcharge.
Less than or equal to 2.5 percent plus 100   60 percent.
 percent of the Board-regulated
 institution's applicable countercyclical
 capital buffer amount and 100 percent of
 the Board-regulated institution's
 applicable GSIB surcharge, and greater
 than 1.875 percent plus 75 percent of the
 Board-regulated institution's applicable
 countercyclical capital buffer amount and
 75 percent of the Board-regulated
 institution's applicable GSIB surcharge.

[[Page 17478]]

 
Less than or equal to 1.875 percent plus 75  40 percent.
 percent of the Board-regulated
 institution's applicable countercyclical
 capital buffer amount and 75 percent of
 the Board-regulated institution's
 applicable GSIB surcharge, and greater
 than 1.25 percent plus 50 percent of the
 Board-regulated institution's applicable
 countercyclical capital buffer amount and
 50 percent of the Board-regulated
 institution's applicable GSIB surcharge.
Less than or equal to 1.25 percent plus 50   20 percent.
 percent of the Board-regulated
 institution's applicable countercyclical
 capital buffer amount and 50 percent of
 the Board-regulated institution's
 applicable GSIB surcharge, and greater
 than 0.625 percent plus 25 percent of the
 Board-regulated institution's applicable
 countercyclical capital buffer amount and
 25 percent of the Board-regulated
 institution's applicable GSIB surcharge.
Less than or equal to 0.625 percent plus 25  0 percent.
 percent of the Board-regulated
 institution's applicable countercyclical
 capital buffer amount and 25 percent of
 the Board-regulated institution's
 applicable GSIB surcharge.
----------------------------------------------------------------------------------------------------------------

    (v) Other limitations on distributions. Additional limitations on 
distributions may apply to a Board-regulated institution under 12 CFR 
225.4, 12 CFR 225.8, and 12 CFR 263.202.
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, April 16, 2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018-08248 Filed 4-19-18; 8:45 am]
BILLING CODE 6210-01-P