FDIC invites public comments on proposed rule for regulatory capital rules

This story appeared in Bank Digest.

The Federal Deposit Insurance Corporation  is inviting public comment on its notice of proposed rulemaking that would amend the definition of "qualifying master netting agreement" under the regulatory capital rules, and the liquidity coverage ratio rule. The amendments are designed to ensure that the regulatory capital and liquidity treatment of certain financial contracts generally would not be affected by implementation of special resolution regimes in foreign jurisdictions if such jurisdictions are similar to the Dodd-Frank Act.

According to FDIC Chairman Martin J. Gruenberg, the proposed rule "would help ensure consistent regulatory capital and liquidity treatment of derivatives transactions and certain related financial contracts covered by foreign laws governing the resolution of financial institutions, if those foreign laws are substantially similar to U.S. law." The agency also released a staff memorandum regarding the NPR.