OCC Bulletin on Proposed Changes to Stress Tests

On July 17th, the Office of the Comptroller of the Currency (“OCC”) issued a bulletin on its proposed adjustment of the timing of the annual stress testing cycle and the proposed clarification of the method used to calculate regulatory capital in the stress tests. The proposal also would provide that covered institutions will not have to calculate their regulatory capital requirements using the advanced approaches method until the stress testing cycle beginning on January 1, 2016. Comments should be submitted on or before September 2, 2014.

Technical Correction to Risk-Based Capital Rules

The Federal Reserve Board, the Federal Deposit Insurance Corporation (“FDIC”), and the OCC announced the finalization of a technical correction of the definition of “eligible guarantee” in the agencies’ risk-based capital rules. The correction affects banking organizations that determine their regulatory capital ratios under the advanced approaches framework, which applies to large internationally active banking organizations, generally those with at least $250 billion in total consolidated assets or at least $10 billion in total on-balance sheet foreign exposures. The final rule is effective October 1, 2014. Joint Agency Press Release.

OCC Bulletin on Fees for 2014

On July 14th, the OCC issued a bulletin informing all national banks, federal savings associations, and federal branches and agencies of foreign banks of fees and assessments charged by the OCC for the remaining calendar year 2014. The bulletin is effective immediately.