Three federal banking regulatory agencies will implement a final rule regarding risk-based capital requirements. The Federal Reserve Board, the Federal Deposit Insurance and the Office of the Comptroller of the Currency will adopt the rule, which sets a floor for the requirements applicable to banking organizations.
As per the new rule, a banking organization is required to meet the higher of the minimum requirements under the general risk-based capital rules and the minimum requirements under the advanced approaches risk-based capital rules. The rule is in line with the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Click here for the release from Federal Reserve.