09 November 2012

Federal Reserve System: Agencies provide guidance on regulatory capital rulemakings

In light of the volume of comments received and the wide range of views expressed during the comment period, the US federal banking agencies do not expect that any of the proposed rules would become effective on January 1, 2013. (Includes SIFMA statement.)

The US federal banking agencies issued three notices of proposed rulemaking in June that would revise and replace the current regulatory capital rules. The proposals suggested an effective date of January 1, 2013. Many industry participants have expressed concern that they may be subject to a final regulatory capital rule on January 1, 2013, without sufficient time to understand the rule or to make necessary systems changes.

In light of the volume of comments received and the wide range of views expressed during the comment period, the agencies do not expect that any of the proposed rules would become effective on January 1, 2013. As members of the Basel Committee on Banking Supervision, the US agencies take seriously their internationally agreed timing commitments regarding the implementation of Basel III and are working as expeditiously as possible to complete the rulemaking process. As with any rule, the agencies will take operational and other considerations into account when determining appropriate implementation dates and associated transition periods.

Press release

2012 Banking and Consumer Regulatory Policy

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SIFMA statement on regulators' extension of Basel III effective date

The Securities Industry and Financial Markets Association's (SIFMA) President and CEO Tim Ryan issued the following statement: “Regulators have appropriately acted to give the industry more time to implement these new capital standards and ensure that each of their systems is updated to comply with Basel III. We remain committed to working with the regulators to ensure compliance with Basel III capital standards to ensure the safety and soundness of the financial system while not constricting bank’s ability to lend, facilitate capital formation, and significantly contribute to our economic recovery.”

Press release © SIFMA

© Federal Reserve