Regulatory capital rules simplified

A joint press release from the Fed, FDIC, and OCC has announced a final rule that reduces regulatory burden by simplifying several requirements in the agencies' regulatory capital rules. The simplifications in the final rule only apply to banking organizations that do not use the "advanced approaches" capital framework, which are generally firms with less than $250 billion in total consolidated assets and less than $10 billion in total foreign exposure. The final rule will be effective as of April 1, 2020, for the amendments to simplify capital rules, and as of October 1, 2019, for revisions to the pre-approval requirements for the redemption of common stock and other technical amendments.