Banking agencies extend comment deadline for long-term debt rulemaking

Banking regulators announced that they will extend the comment period on a proposed long-term debt requirement for banks with more than $100 billion in assets to Jan. 16. The requirement is part of a package of proposed rulemakings that the FDIC, OCC and Federal Reserve have been pursuing since before the recent bank failures. 

Under the proposed rule, a covered bank would be required to have a minimum outstanding amount of eligible long-term debt that is at least 6% of the institution’s total risk-weighted assets, 2.5% of its total leverage exposure (if it is required to maintain a minimum supplementary leverage ratio) or 3.5% of its average total consolidated assets, whichever is greater. Banks would have three years to comply with the requirement after the date they become subject to the rule, but partial compliance would be scaled up during the phase-in period.