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U.S. regulators issue Basel III FAQs, pull from community bank questions

U.S. regulators issue Basel III FAQs, pull from community bank questions

                                                                                                                      

​​​FAQs cover real estate and off-balance-sheet exposures and more​      


​​​​WASHINGTON, 13 April 2015 –​ ​​​The federal banking agencies issued frequently asked questions on the Basel III regulatory  ​apital rules based on questions received from community banks and others in the industry. The FAQs cover high-volatility commercial real estate (HVCRE) exposures, other real estate and offbalance-sheet exposures, ​and more.

The FDIC also released a Financial Institution Letter on revisions to the regulatory capital sections of the call report due this month. Community banks will need to make a one-time, irrevocable election to opt out of the inclusion of accumulated other comprehensive income (AOCI) in common equity tier 1 capital when they file their call report. Otherwise, community banks will need to irrevocably elect to opt into the inclusion of AOCI in regulatory capital with the April filing.

The FDIC recently released a separate Financial Institution Letter on the AOCI opt-out election, which must be made on Schedule RC-R of the call report. More information on the Basel III rules, including an ICBA summary and audio conference recording, is available on ICBA’s Basel III resource center. R