FDIC Rescinds Certain Regulations Dealing with Capital Rules

The FDIC has removed certain capital rules that were superseded by revised capital regulations in 2014.  This rescission removes capital rules that have remained in the Code of Federal Regulations (“CFR”) even though they were no longer effective.  The rule went into effect April 24, 2018.

The final rule rescinds part 325, subpart A: Minimum Capital Requirements; subpart B: Prompt Corrective Action; and appendices A through D, as the rules contained therein were superseded by part 324.  The final rule retitles part 325 as “Annual Stress Test,” and keeps the annual stress testing rule as is.

The FDIC implemented this final rule because maintaining the superseded capital rules in the CFR had the potential to result in confusion to covered entities.  While this final rule removes the above-referenced rules from the CFR, it does not impact the legal status of any reference to the superseded capital rules in outstanding compliance and enforcement orders, agreements, and memoranda of understanding issued by the FDIC prior to the final rule’s effective date.  Covered institutions are still subject to the revised capital rules and must be in compliance with all such regulations found in part 324.