The OCC, the Federal Reserve Board and the FDIC (collectively, the "agencies") adopted amendments to the capital requirement for U.S. banking organizations engaged primarily in custodial activities. The amendments were adopted without modifications to the original proposal.

As previously covered, the amendments will implement Section 402 of the Economic Growth, Regulatory Relief and Consumer Protection Act. Pursuant to the amendments, banking organizations engaged primarily in custodial activities will be permitted to exclude deposits placed at a "qualifying central bank" (i.e., any Federal Reserve Bank, the European Central Bank, or a central bank of an Organization for Economic Cooperation and Development member country whose sovereign exposures qualify for a zero percent risk weight) from the supplementary leverage ratio.

The amendments will become effective on April 1, 2020.