20 Nov FDIC – Proposed Rulemaking to Address the Temporary Deposit Insurance Assessment Effects of the Optional Regulatory Capital Transitions for Implementing the Current Expected Credit Losses (CECL) Methodology
November 20, 2020 – Propose to amend 12 CFR 327 for temporary deposit insurance assessment effects resulting from optional regulatory capital transition provisions relating to CECL implementation. Remove double counting of a portion of CEC (modified) transitional amount calculation of financial measures used for assessment rates for large and highly complex IDIs.
Amend assessment regulations to remove double counting of a specified portion of the CECL transitional amounts and adjust the calculation of loss severity measure for same.
Continue to allow the application of CECL regulatory capital transition provisions to Tier 1 leverage ratio used in determining deposit insurance assessment rates for all IDIs.
Would require large, highly complex IDIs electing CECL transition provision to report one additional, temporary item on Call Reports, doesn’t apply to banks under $10 Billion.
Comments will be accepted for 30 days after publication in the Federal Register.
For more information, visit www.FDIC.gov.