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

FEDERAL RESERVE SYSTEM

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

Page Range		17477-17478
FR Document		2018-08248

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 Issue 77 (Friday, April 20, 2018)

[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]



========================================================================
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. 

========================================================================


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.

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

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.
---------------------------------------------------------------------------

    \1\ 78 FR 62018.
    \2\ 79 FR 24528.
    \3\ See e.g., 78 FR 51101 at 51105-51107 (August 20, 2013).
---------------------------------------------------------------------------

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
----------------------------------------------------------------------------------------------------------------
        Capital conservation buffer          Maximum payout ratio  (as a percentage of eligible retained income)
----------------------------------------------------------------------------------------------------------------
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

17477

Rules and Regulations Federal Register
Vol. 83, No. 77

Friday, April 20, 2018

This section of the FEDERAL REGISTER Governors of the Federal Reserve For the reasons set forth in the
contains regulatory documents having general System, 20th Street and Constitution preamble, chapter II of title 12 of the
applicability and legal effect, most of which Avenue NW, Washington, DC 20551. Code of Federal Regulations is amended
are keyed to and codified in the Code of For the hearing impaired, by making the following correcting
Federal Regulations, which is published under Telecommunications Device for the Deaf amendments:
50 titles pursuant to 44 U.S.C. 1510.
(TDD) users may contact (202) 263–
The Code of Federal Regulations is sold by 4869. PART 217—CAPITAL ADEQUACY OF
the Superintendent of Documents. BANK HOLDING COMPANIES,
SUPPLEMENTARY INFORMATION: The Board
SAVINGS AND LOAN HOLDING
is correcting the unintended deletion of
certain provisions of the regulatory COMPANIES, AND STATE MEMBER
FEDERAL RESERVE SYSTEM capital rule originally published in the BANKS (REGULATION Q)

12 CFR Part 217 Federal Register on October 11, 2013.1
A subsequent rule of the Board that ■ 1. The authority citation for part 217
[Docket Nos. R–1606; RIN 7100–AF 05] established enhanced supplementary continues to read as follows:
leverage ratio standards was published Authority: 12 U.S.C. 248(a), 321–338a,
Regulation Q; Regulatory Capital in the Federal Register on May 1, 2014.2 481–486, 1462a, 1467a, 1818, 1828, 1831n,
Rules; Correction In order to implement the enhanced 1831o, 1831p–l, 1831w, 1835, 1844(b), 1851,
supplementary leverage ratio standards, 3904, 3906–3909, 4808, 5365, 5368, 5371.
AGENCY: Board of Governors of the
Federal Reserve System. the May 1, 2014, final rule included ■ 2. In § 217.11, add paragraph
amendatory text for 12 CFR (a)(4)(iv), Table 1 to § 217.11, and
ACTION: Final rule; correcting
217.11(a)(4)(i) through (iii) and paragraph (a)(4) (v) to read as follows:
amendments.
instructions to the Federal Register to
amend 12 CFR 217.11(a)(4) on the § 217.11 Capital conservation buffer,
SUMMARY: The Board of Governors of the
effective date of the rule, January 1, countercyclical capital buffer amount, and
Federal Reserve System (Board) GSIB surcharge.
published a final rule in the Federal 2018. When the amendments to 12 CFR
Register on October 11, 2013, regarding 217.11(a)(4) were implemented on * * * * *
Regulatory Capital Rules. The Board January 1, 2018, paragraphs (a)(4)(i) (a) * * *
also published a final rule in the through (iii) of 12 CFR 217.11 were (4) * * *
Federal Register on May 1, 2014, to amended as intended; however,
paragraphs (a)(4)(iv) and (v) and Table (iv) Prior approval. Notwithstanding
amend the regulatory capital rules to the limitations in paragraphs (a)(4)(i)
include enhanced supplementary 1 to 12 CFR 217.11 were removed from
12 CFR part 217. The removal of through (iii) of this section, the Board
leverage ratio standards. This may permit a Board-regulated
publication resolves an unintended paragraph (a)(4)(iv) and (v) and Table 1
to 12 CFR 217.11 was contrary to the institution to make a distribution or
deletion from the regulatory capital discretionary bonus payment upon a
rules that was made in connection with Board’s intent as stated in the May 1,
2014, final rule.3 This document request of the Board-regulated
the enhanced supplementary leverage institution, if the Board determines that
ratio standards. amends 12 CFR 217.11 to reinstate
paragraphs (a)(4)(iv) and (v) and Table the distribution or discretionary bonus
DATES: This final rule is effective April payment would not be contrary to the
1 as in effect immediately prior to
20, 2018. January 1, 2018. purposes of this section, or to the safety
FOR FURTHER INFORMATION CONTACT: and soundness of the Board-regulated
Benjamin McDonough, Assistant List of Subjects in 12 CFR Part 217 institution. In making such a
General Counsel, (202) 452–2036, David Administrative practice and determination, the Board will consider
Alexander, Counsel, (202) 452–2877, or procedure, Banks, Banking, Holding the nature and extent of the request and
Mark Buresh, Senior Attorney, (202) companies, Reporting and the particular circumstances giving rise
452–5270, Legal Division, Board of recordkeeping requirements, Securities. to the request.

TABLE 1 TO § 217.11—CALCULATION OF MAXIMUM PAYOUT AMOUNT
Maximum payout ratio
Capital conservation buffer (as a percentage of eligible retained
income)

Greater than 2.5 percent plus 100 percent of the Board-regulated institution’s applicable counter- No payout ratio limitation applies.
cyclical capital buffer amount and 100 percent of the Board-regulated institution’s applicable
GSIB surcharge.
sradovich on DSK3GMQ082PROD with RULES

Less than or equal to 2.5 percent plus 100 percent of the Board-regulated institution’s applicable 60 percent.
countercyclical capital buffer amount and 100 percent of the Board-regulated institution’s appli-
cable 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-regu-
lated institution’s applicable GSIB surcharge.

1 78 FR 62018. 2 79 FR 24528. 3 See e.g., 78 FR 51101 at 51105–51107 (August

20, 2013).

VerDate Sep<11>2014 15:57 Apr 19, 2018 Jkt 244001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1

17478 Federal Register / Vol. 83, No. 77 / Friday, April 20, 2018 / Rules and Regulations

TABLE 1 TO § 217.11—CALCULATION OF MAXIMUM PAYOUT AMOUNT—Continued
Maximum payout ratio
Capital conservation buffer (as a percentage of eligible retained
income)

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

(v) Other limitations on distributions. product. The MCAI describes the unsafe 4165; fax: (816) 329–4090; email:
Additional limitations on distributions condition as the potential of an in-flight jim.rutherford@faa.gov.
may apply to a Board-regulated shut-down and engine fire due to failure SUPPLEMENTARY INFORMATION:
institution under 12 CFR 225.4, 12 CFR of the connecting stud for the two fuel
225.8, and 12 CFR 263.202. injector mounts of the engine Discussion
* * * * * redundancy system on gliders equipped We issued a notice of proposed
with a Solo 2625 02i engine. We are rulemaking (NPRM) to amend 14 CFR
By order of the Board of Governors of the
Federal Reserve System, acting through the
issuing this AD to add a model to the part 39 by adding an AD that would
Secretary of the Board under delegated applicability and require actions to apply to DG Flugzeugbau GmbH Models
authority, April 16, 2018. address the unsafe condition on these DG–500MB and DG–1000M airplanes.
Ann Misback, products. That NPRM was published in the
Secretary of the Board. DATES: This AD is effective May 25, Federal Register on January 16, 2018
[FR Doc. 2018–08248 Filed 4–19–18; 8:45 am] 2018. (83 FR 2088), and proposed to
BILLING CODE 6210–01–P The Director of the Federal Register supersede AD 2017–08–09, Amendment
approved the incorporation by reference 39–18858 (82 FR 18694; April 21, 2017)
of a certain publication listed in this AD (‘‘AD 2017–08–09’’). Since we issued
DEPARTMENT OF TRANSPORTATION as of May 26, 2017 (82 FR 18694, AD 2017–08–09, the FAA has now type
April 21, 2017). certificated the DG Flugzeugbau GmbH
Federal Aviation Administration ADDRESSES: You may examine the AD Model DG–1000M glider and that glider
docket on the internet at http:// model is equipped with a Solo 2625 02i
14 CFR Part 39 www.regulations.gov by searching for engine.
and locating Docket No. FAA–2018– The NPRM proposed to correct an
[Docket No. FAA–2018–0014; Product
0014; or in person at Docket Operations, unsafe condition for the specified
Identifier 2017–CE–044–AD; Amendment
39–19253; AD 2018–07–22] U.S. Department of Transportation, M– products and was based on mandatory
30, West Building Ground Floor, Room continuing airworthiness information
RIN 2120–AA64 W12–140, 1200 New Jersey Avenue SE, (MCAI) originated by an aviation
Washington, DC 20590. authority of another country. You may
Airworthiness Directives; DG For service information identified in examine the MCAI on the internet at:
Flugzeugbau GmbH Gliders this AD, contact Solo Kleinmotoren https://www.regulations.gov/
AGENCY: Federal Aviation GmbH, Postfach 600152, 71050 document?D=FAA-2018-0014-0002.
Administration (FAA), Department of Sindelfingen, Germany; telephone: +49
Comments
Transportation (DOT). 703 1301–0; fax: +49 703 1301–136;
email: aircraft@solo-germany.com; We gave the public the opportunity to
ACTION: Final rule.
internet: http://aircraft.solo-online.com. participate in developing this AD. We
SUMMARY: We are superseding You may view this referenced service received no comments on the NPRM or
Airworthiness Directive (AD) 2017–08– information at the FAA, Policy and on the determination of the cost to the
09 for DG Flugzeugbau GmbH Model Innovation Division, 901 Locust, Kansas public.
DG–500MB gliders that are equipped City, Missouri 64106. For information
Conclusion
with a Solo 2625 02 engine modified on the availability of this material at the
with a fuel injection system following FAA, call (816) 329–4148. It is also We reviewed the relevant data and
the instructions of Solo Kleinmotoren available on the internet at http:// determined that air safety and the
sradovich on DSK3GMQ082PROD with RULES

GmbH Technische Mitteilung Nr. 4600– www.regulations.gov by searching for public interest require adopting the AD
3 and identified as Solo 2625 02i. This Docket No. FAA–2018–0014. as proposed except for minor editorial
AD results from mandatory continuing FOR FURTHER INFORMATION CONTACT: Jim changes. We have determined that these
airworthiness information (MCAI) Rutherford, Aerospace Engineer, FAA, minor changes:
originated by an aviation authority of Small Airplane Standards Branch, 901 • Are consistent with the intent that
another country to identify and correct Locust, Room 301, Kansas City, was proposed in the NPRM for
an unsafe condition on an aviation Missouri 64106; telephone: (816) 329– correcting the unsafe condition; and

VerDate Sep<11>2014 15:57 Apr 19, 2018 Jkt 244001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1

Document Created: 2018-04-20 00:03:08
Document Modified: 2018-04-20 00:03:08

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule; correcting amendments.
Dates		This final rule is effective April 20, 2018.
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.
FR Citation		83 FR 17477
CFR Associated		Administrative Practice and Procedure; Banks; Banking; Holding Companies; Reporting and Recordkeeping Requirements and Securities