On September 3, 2015, the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency announced their approval of Bank of America and its subsidiary national banks to use the “advanced approaches” capital framework. The advanced approaches framework requires banks to meet certain criteria for risk-measurement and risk-management when calculating risk-based capital standards as developed by the Basel Committee on Banking Supervision. In order to use the advanced approaches framework, banks are required to conduct a satisfactory “parallel run” under the framework in order to show the relevant regulators that the bank is able to comply with the framework for at least four consecutive calendar quarters. Bank of America, along with its subsidiary national banks, fulfilled the parallel run requirement and will begin using the advanced approaches framework to calculate and disclose their risk-based capital measures beginning in the fourth quarter of 2015.
The FRB press release is available at: http://www.federalreserve.gov/newsevents/press/bcreg/20150903a.htm and the OCC press release is available at: http://www.occ.gov/news-issuances/news-releases/2015/nr-ia-2015-122.html.