On September 24th, the Federal Reserve Board issued two interim final rules that clarify how companies should incorporate the Basel III regulatory capital reforms into their capital and business projections during the next cycle of capital plan submissions and stress tests. The next capital planning and stress testing cycle, which begins October 1, will overlap with the implementation of the Basel III capital reforms. The first interim final rule applies to bank holding companies with $50 billion or more in total consolidated assets. The rule clarifies that in the next capital planning and stress testing cycle, these companies must incorporate the revised capital framework into their capital planning projections and into the stress tests required under the Dodd-Frank Act using the transition paths established in the Basel III final rule. This rule also clarifies that for the upcoming cycle, capital adequacy at large banking organizations would continue to be assessed against a minimum 5 percent tier 1 common ratio calculated in the same manner as under previous stress tests and capital plan submissions. The second interim final rule provides a one-year transition period for most banking organizations with between $10 billion and $50 billion in total consolidated assets. These companies will be conducting their first company-run stress test under the Board's rules implementing the Dodd-Frank Act. They will be required to calculate their stress test projections using the Board's current regulatory capital rules during the upcoming stress test to allow time to adjust their internal systems to the revised capital framework. The interim final rules are effective immediately. Comments should be submitted on or before November 25, 2013. Federal Reserve Board Press Release.