Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-Weighted Assets

Treasury Department, Comptroller of the Currency, Federal Reserve System, Federal Deposit Insurance Corporation
Fri, 27 Mar 2026 00:00:00 GMT
Administrative practice and procedure, Banks, banking, Credit, Holding companies, Investments, National banks, Qualified financial contracts, Reporting and recordkeeping requirements, Savings associations, Securities

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are proposing to modify certain aspects of the regulatory capital rule (the proposal). The proposal would revise the risk-based capital treatment of certain exposure categories under the standardized approach, focusing on improving the calibration and risk sensitivity of risk weights that are particularly material to covered banking organizations' lending activities. The proposal would also modify the definition of regulatory capital by removing the threshold- based deduction for mortgage servicing assets for all banking organizations subject to the regulatory capital rule, including banking organizations subject to the community bank leverage ratio framework. In addition, the proposal would require Category III and IV banking organizations to recognize most elements of accumulated other comprehensive income in their regulatory capital. The agencies are concurrently publishing a separate proposal, which would require Category I and II banking organizations to use a new framework to calculate risk-weighted assets, called the expanded risk-based approach and would allow other banking organizations to elect to use the expanded risk-based approach.