On July 2, 2013, the Federal Reserve Bank approved the "Final Rule on Enhanced Regulatory Capital Standards," which implements changes to the regulatory capital framework for all banking organizations. The FDIC and OCC will take it up on July 9. Read the full Federal Reserve announcement, which includes links to further resources for banks.
The Federal Reserve's Community Bank Guide charts the implications for community banking organizations. The table highlights the provisions that are most relevant to smaller, non-complex banking organizations, and it compares the new capital requirements to the current standards.
According to Reuters, "The Fed warned it was drafting four more rules that would go beyond what the Basel accord called for, including one on leverage and another on a capital surcharge. In the final rule adopted on Tuesday, the Fed did provide some flexibility designed to benefit the housing recovery and smaller banks. The final rule drops a provision from the original proposal that would have forced banks to set aside more capital to fund their residential mortgage business. Small banks can also opt out of a costly requirement that would have forced them to adjust the value of securities in their trading book on a frequent basis. 'The headline here is (that) community banks are getting significant relief,' said Allison Breault, an associate at law firm Cleary Gottlieb Steen & Hamilton in Brussels."
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