A final rule was published in the Federal Register onFriday by the Office of the Comptroller of the Currency and theBoard of Governors of the Federal Reserve System that replacedexisting risk-based and leverage capital rules.

“The final rule is consistent with the interim final rulepublished by the Federal Deposit Insurance Corporation,” accordingto an OCC bulletin released Friday. “The rule strengthens thedefinition of regulatory capital, increases risk-based capitalrequirements, and amends the methodologies for determiningrisk-weighted assets.”

This new rule provides a snapshot of what the NCUA is expected to announce at the end ofthe year. In July, the NCUA said it would develop a rule that wouldincrease net worth requirements for credit unions with more than$50 million in assets.

“Under the final rule, an advanced approaches bankingorganization that is not an SLHC must comply with minimum commonequity tier 1, tier 1, and total capital ratio requirements of4.0%, 5.5%, and 8.0% during calendar year 2014, and 4.5%, 6.0%,8.0%, respectively, beginning January 1, 2015,” said the rule.“These transition provisions are consistent with those under BaselIII for internationally active banking organizations.”

The agencies retain the current treatment for residentialmortgage exposures in the final rule.

“Consistent with the general risk-based capital rules, the finalrule assigns a 50% or 100% risk weight to exposures secured by oneto four family residential properties,” said the full text of therule.

The final rule also “amends the methodologies for determiningrisk-weighted assets for all banking organizations, and introducesdisclosure requirements that would apply to top-tier bankingorganizations domiciled in the United States with $50 billion ormore in total assets.”

These revisions are intended to “enhance the risk sensitivityand remediate weaknesses identified over recent years,” said therule.