FDIC Approves Rule Allowing Early Adoption of Regulatory Capital Relief

The FDIC today approved a joint final rule with the OCC and the Federal Reserve that would allow banks to adopt early the relief provisions included in the recently finalized capital simplification rule. The simplification rule, which was not effective until April 1, 2020, provided capital relief for certain asset classes such as mortgage servicing assets and trust preferred securities investments.

Under today’s final rule, non-advanced approaches institutions would be permitted to adopt the relief provisions beginning on Jan. 1, 2020—several months ahead of the rule’s original effective date. The American Bankers Association—which advocated for early adoption along with the state associations—welcomed the final rule.